Sun Pharmaceutical Industries Limited · NSE:SUNPHARMA
Sun Pharmaceutical Industries — Investor Presentation (July 2023)
60 slides from Sun Pharmaceutical Industries's investor presentation, Jul 21, 2023
Slide 1: Cover letter to stock exchanges
Sun Pharmaceutical Industries Limited SUN HOUSE, CTS No. 201 B/1, Western Express Highway, Goregaon (E), Mumbai 400063, India Tel.: (91-22) 4324 4324 Fax.: (91-22) 4324 4343 CIN: L24230GJ1993PLC019050 www.sunpharma.com 21 July 2023 National Stock Exchange of India Limited, BSE Limited, Exchange Plaz
Slide 2: Creating Lasting Value - Investor Presentation July 2023
Creating Lasting Value Investor Presentation - July 2023 NSE:SUNPHARMA | BSE:524715 | Bloomberg:SUNP IN | Reuters:SUN.BO WWW.SUNPHARMA.COM
Slide 3: Disclaimer
Disclaimer Except for the historical information contained herein, statements in this presentation and the subsequent discussions, which include words or phrases such as “will”, “aim”, “will likely result”, “would”, “believe”, “may”, “expect”, “will continue”, “anticipate”, “estimate”, “intend”, “pl
Slide 4: Sun Pharma agenda
Sun Pharma 1 Revenue composition and growth highlights 2 Business operations 3 R&D & Manufacturing 4 Corporate Governance 5 Key Financials 6 Company history and key deals 7 Focus areas 3
Slide 5: Sun Pharma at a glance
Sun Pharma at a glance Leading global specialty generic company* Global presence Operates in over 100 countries Diversified business Specialty portfolio, branded generics, generics & APIs Global Specialty Fast growing. Focused therapy approach. US Generics 10th largest in US generics market## India
Slide 6: A diversified revenue base
A diversified revenue base Emerging Markets 18% Rest of World (RoW)# 14% API & Others 5% FY23 Sales India Branded Rs 433 Bn Formulations 32% US Formulations 31% # Includes Western Europe, Canada, Japan, Australia & New Zealand, Israel and other markets. 5
Slide 7: Impressive track record of growth
Impressive track record of growth (All Figures in Rs Bn) CAGR for FY08-FY23 86 433 116 270 56 36 33 Adjusted 49 Sales EBITDA Net Profit 112 CAGR CAGR 15 CAGR 19% 16 14% 12% 34 FY08 FY13 FY18 FY23 FY08 FY13 FY18 FY23 FY08 FY13 FY18 FY23 36 50 29 39 25 34 19 Adjusted Operating Free Cash 15 14 EPS Cash
Slide 8: Strong profitability and return ratios
Strong profitability and return ratios Adjusted Net Profit Gross Margin # EBITDA Margin Margin 26.9% 26.5% 75.4% 25.3% 73.9% 73.1% 20.0% 20.0% 71.4% 21.3% 17.8% 12.5% FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 ROCE ROE Market Cap (USD Bn) 29.5 29.4 16.4% 16.5% 15.9% 15.0% 13.5% 12.5
Slide 9: Best-in-class profitability
Best-in-class profitability Sun Pharma Range of Top 9 Indian Pharma Cos. Average Gross Margin EBITDA Margin Adjusted Net Profit Margin 75% 74% 73% 71% 27% 27% 65% 25% 64% 63% 23% 20% 20% 62% 21% 18% 20% 19% 19% 13% 14% 13% 12% 10% FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 Gross mar
Slide 10: Business operations
9 SUN PHARMA Business operations
Slide 11: Snapshot of business operations
Snapshot of business operations US Formulations India Branded Generics Presence in Specialty & Generic segments with more Largest pharma company in India by sales than 570 approved products Ranked No.1 with 12 classes of prescribers 10th largest generics company in US* with a strong Leadin
Slide 12: Driving sustainable long term growth
Driving sustainable long term growth • Achieve critical mass in key markets • Clear and actionable targets on • Increase contribution of specialty sustainability and complex products • Embed sustainability practices in • Direct future investments businesses towards differentiated products profitabil
Slide 13: Global Specialty
9 SUN PHARMA Global Specialty \ 4 s\Odomzo” = BromSITE’ Sezaby 3 ILUMYA W& Cequa @5? (sonidegib) "38 (bromfenac ophthalmic solution 0.075% ee injection 100mg (yclospoine ophthalmic solution) 0.094 ry 4 2» LEVULAN® BLU-U’ ABSORICA LD . fy) W Yo Nnsa KERASTICK® + Blue Light Photodynamic Therap €Ipros’
Slide 14: Global Specialty highlights
Global Specialty highlights Building a Global Specialty business in select therapy areas Marketed products in Dermatology, Ophthalmology and Onco Focused approach Dermatology Key growth driver 16.2% of sales in FY23 vs 7.3% of sales in FY18 Wide portfolio 26 products marketed globally US market pres
Slide 15: Global Specialty portfolio
Global Specialty portfolio For treatment of adults with moderate-to-severe plaque psoriasis who are candidates for systemic therapy or phototherapy • Long term clinical data shows that the significant response rate seen in 52 & 64 weeks were maintained over five years1 • Ongoing Phase-3 trials for P
Slide 16: Global Specialty portfolio
Global Specialty portfolio Treatment of adult patients with locally advanced basal cell carcinoma (BCC) that has recurred following surgery or radiation therapy, or those who are not candidates for surgery or radiation therapy. • ODOMZO was shown to shrink laBCC in almost 6 out of 10 patients (56%)
Slide 17: Global Specialty portfolio
Global Specialty portfolio In combination with methylprednisolone for the treatment of patients with metastatic castration resistant prostate cancer (CRPC). • YONSA® was shown in clinical studies to be an effective form of abiraterone acetate, and can be taken with or without food, in combination wi
Slide 18: Specialty pipeline
Specialty pipeline Route of Mechanism of Asset Indication Preclinical Phase 1 Phase 2 Phase 3 Registration administration action CTP-543 Alopecia Oral JAK Inhibitor (deuruxolitinib) Areata Ilumya Psoriatic IL-23 Injection (tildrakizumab) Arthritis Antagonist Liposomal intra Pain in MM-II Injection -
Slide 19: US Formulations
US Formulations 31% of FY23 Revenues 18
Slide 20: US highlights
US highlights Significant Specialty presence/10th largest in US Generics* Dermatology segment Ranked 2nd by prescriptions## in the US dermatology market Wide basket of 616 ANDAs & 67 NDAs filed and 519 ANDAs & 54 Comprehensive portfolio** NDAs approved across multiple therapies Robust pipeline** 97
Slide 21: Milestones in US formulations
Milestones in US formulations • Acquired Concert Pharma giving access to deuruxolitinib for alopecia areata FY23 • Launched Sezaby in the US FY22 Launched Winlevi in the US Presented long term clinical data for Ilumya & other clinical insights for Odomzo & FY21 Levulan at American Academy of Dermato
Slide 22: US formulations: revenue progression
US formulations: revenue progression Sales in Rs Bn 135 114 107 105 101 FY19 FY20 FY21 FY22 FY23 21
Slide 23: ANDA & NDA pipeline
ANDA & NDA pipeline ANDAs filed and approved (cumulative) NDA filed and approved (cumulative) 605 616 581 595 561 571 512 519 501 483 453 422 67 67 64 59 60 55 55 54 54 52 42 39 FY18 FY19 FY20 FY21 FY22 FY23 FY18 FY19 FY20 FY21 FY22 FY23 Cumulative products filed Cumulative products filed Cumulative
Slide 24: India Branded Formulations
India Branded Formulations 32% of FY23 Revenues 23
Slide 25: India highlights
India highlights Largest Pharma company in India Market position** Largest Pharma company in India with 8.3% market share Prescription ranking## Ranked No. 1 by prescriptions with 12 classes of prescribers Chronic segment Market leader in the chronic segment Acute segment Strong positioning in the a
Slide 26: Largest Pharma company in India
Largest Pharma company in India Market Share Formulation sales in India as of 12 months ended Mar 2023 (Rs mn) 154,150 Sun Pharma 8.3% 116,680 Abbott + Abbott HC + Novo 6.3% 93,020 Mankind 5.0% 90,890 Cipla 4.9% 72,600 Zydus 3.9% 66,110 Torrent 3.6% 65,100 Alkem + Cachet + Indchemie 3.5% 63,300 Lupi
Slide 27: India: revenue progression
India: revenue progression Sales in Rs Bn Therapeutic breadth** Others Opthalmology 2% 4% Cardiology Gynaecology, 3% 18% 136 Urology, 4% 128 Vitamins / Minerals / 103 Nutrients, 5% 97 Respiratory 5% Market Share 73 Neuro-Psychiatry Dermatology, 6% 8.3% 16% Pain / Analgesics 7% Diabetology 7% Gastroe
Slide 28: India: Leadership across therapy areas
India: Leadership across therapy areas* Ranked number 1 company with 12 prescriber categories* Prescription Ranking Specialist Feb ’19 Feb ’20 Feb ’21 Feb ’22 Feb ’23 Psychiatrists 1 1 1 1 1 Neurologists 1 1 1 1 1 Cardiologists 1 1 1 1 1 Gastroenterologists 1 1 1 1 1 Diabetologists 1 1 1 1 1 Dermato
Slide 29: India: Best-in-class field force productivity
India: Best-in-class field force productivity Sales per medical representative (Rs mn) 9,550 9,707 10,963 11,149 12,692 • Well trained and scientifically Impact of oriented sales representatives sales force team with strong performance expansion track record 11.4 10.7 10.0 9.4 • Highest field force
Slide 30: Emerging Markets
Emerging Markets 18% of FY23 Revenues 29
Slide 31: Emerging Markets highlights
Emerging Markets highlights Leading Indian company in Emerging Markets Global footprint Presence in over 80 countries Focus markets Romania, Russia, South Africa, Brazil, Mexico Product portfolio Extensive basket of branded generics Customer focus Strong relationships with prescribers Sales force Ov
Slide 32: Rest of World (Western Europe, Canada, Japan, ANZ, Israel & other markets)
Rest of World (Western Europe, Canada, Japan, ANZ, Israel & other markets) 14% of FY23 Revenues 31
Slide 33: Rest of World highlights
Rest of World highlights Amongst the leading Indian companies Market presence Western Europe, Canada, A&NZ, Japan, Israel and others Product portfolio Expanding basket includes specialty, hospital & retail products Focus Development and commercialization of differentiated products • Distribution led
Slide 34: Global Consumer Healthcare
Global Consumer Healthcare 33
Slide 35: Global Consumer Healthcare highlights
Global Consumer Healthcare highlights An attractive opportunity India Amongst the top 5 consumer healthcare companies Global presence Presence in over 25+ countries India, Romania, South Africa, Nigeria, Myanmar, Ukraine, Poland, Markets of presence Thailand, Belarus, Kazakhstan, Nepal, Morocco, UAE
Slide 36: Active Pharmaceutical Ingredients (API)
Active Pharmaceutical Ingredients (API) 5% of FY23 Revenues 35
Slide 37: API highlights
API highlights Backward integration has strategic importance Backward integration provides cost competitiveness and supply Strategic importance reliability Customers Large generic and innovator companies Product portfolio Approximately 370 APIs Pipeline development 10-20 APIs scaled up annually Regu
Slide 38: Research & Development
9 SUN PHARMA Research & Development 37
Slide 39: Research & Development
Research & Development Cumulative R&D spend of ~Rs 230 Bn to date R&D spend R&D spend at 5.5% of sales for FY23 Specialty R&D Global development capabilities incl. clinical trials Finished dosage development, biological support, chemistry and Generic capabilities new drug development Organization Ov
Slide 40: R&D investments
R&D investments R&D investments Filings and approvals 6.9% 6.1% 6.5% 5.8% 5.5% ANDA NDA/BLA DMF/CEP Patents** 23.7 616 67 489 2,346 21.5 22.2 19.8 19.8 519 54 380 1,665 FY19 FY20 FY21 FY22 FY23 Filed Approved Filed Approved Filed Approved Filed Granted ** Excludes expired/abandoned patents R&D inves
Slide 41: Global Manufacturing
9 SUN PHARMA Global Manufacturing
Slide 42: Global Manufacturing highlights
Global Manufacturing highlights World Class manufacturing infrastructure 43 manufacturing facilities across India, the Americas, Asia, Africa, Extensive global footprint Australia and Europe Vertically integrated network across six continents enables high Integrated network quality, low cost and a q
Slide 43: Manufacturing facilities
Manufacturing facilities 43 manufacturing sites • Formulation • India : 15, US : 3 • Canada, Japan, Hungary, Israel, Bangladesh, South Africa, Malaysia, Romania, Egypt, Nigeria and Russia : 1 each • Capacities available for a variety of finished dosages • API • India : 9, Australia : 2, Israel : 1,
Slide 44: Corporate governance
Corporate governance Strong board comprising of majority independent directors. Five of nine board of directors are independent. Lead Independent Independent Director Independent Director Independent Director Independent Director Director Dr. Pawan Goenka Gautam B. Doshi Rama Bijapurkar Sanjay Asher
Slide 45: Key Financials
9 SUN PHARMA Key Financials 44
Slide 46: Summary Financials
Summary Financials Market capitalisation Rs 2,478 Bn / US$ 30 Bn (as of 03th July 2023) ( All Figures in Rs mn ) FY19** YoY FY20 YoY FY21 YoY FY22 YoY FY23 YoY P&L Summary Sales 286,863 10% 323,252 13% 332,331 3% 384,264 16% 432,789 13% Gross Profit 208,173 12% 230,947 11% 245,430 6% 280,749 14% 326
Slide 47: Sales split
Sales split In Rs Bn Sales 287 323 332 384 433 22 21 60 55 20 21 79 18 45 49 67 35 55 58 54 135 114 105 101 107 128 136 97 103 73 FY19 FY20 FY21 FY22 FY23 India Formulations US Formulations Emerging Markets Rest of World API+Others 46
Slide 48: EBITDA trend
EBITDA trend In Rs Bn Sales 287 323 332 384 433 % of Sales 27.4% 28.6% 26.1% 26.9% 24.6% 19.2% 20.8% 19.7% 20.6% 19.0% 28.0% 30.4% 28.5% 30.8% 31.8% 25.3% 26.9% 26.5% 21.7% 21.3% FY19 FY20 FY21 FY22 FY23 EBITDA Other Expenditure Personnel Costs Material Costs 47
Slide 49: Cash Flow & debt
Cash Flow & debt Net Cash from Operating Activities (Rs Bn) Free Cash Flow (Rs Bn) 89.8 74.9 65.5 61.7 50.1 50.0 49.6 28.7 22.0 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 -10.2 Gross Debt (Rs Bn) Net Cash (excluding debt) (Rs Bn) 149.4 104.8 119.2 82.2 103.0 62.0 69.5 35.2 34.7 9.3 FY19 FY20
Slide 50: Financial ratios
Financial ratios FY19 ** FY20 FY21 FY22 FY23 Growth (%) Sales 10.1 12.7 2.8 15.6 12.6 Gross Profit 11.7 10.9 6.3 14.4 16.2 EBITDA 14.3 9.3 27.0 23.6 14.5 Net Profit 27.2 41.3 (22.9) 12.7 158.9 Net Profit (Adjusted) 17.5 # 3.8 # 47.4 # 29.3 # 12.8# Margins (%) Gross Margin 72.6 71.4 73.9 73.1 75.4 EB
Slide 51: Key Financials Q4 & FY23
Key Financials Q4 & FY23 ( All Figures in Rs mn ) Q4 FY23 Q4 FY22 CHANGE FY23 FY22 CHANGE Gross Sales 107,256 93,861 14.3% 432,789 384,264 12.6% Revenue from operation 109,307 94,468 15.7% 438,857 386,545 13.5% Gross Profit 84,754 68,465 23.8% 326,167 280,749 16.2% Gross Margin 79.0% 72.9% 75.4% 73.
Slide 52: Sales split Q4 & FY23
Sales split Q4 & FY23 ( All Figures in Rs mn ) Q4 FY23 Q4 FY22 CHANGE FY23 FY22 CHANGE Formulation India 33,641 30,956 8.7% 136,031 127,593 6.6% US 35,343 29,246 20.8% 135,353 113,737 19.0% Emerging Markets 18,204 15,475 17.6% 78,977 67,432 17.1% ROW # 15,744 13,407 17.4% 60,426 54,545 10.8% Sub-tot
Slide 53: Company history and key deals
Company history and key deals 52
Slide 54: Creating a global company over time
Creating a global company over time 1983 1994 2010 2012 2013 Acquired Dusa Began with 5 Acquired URL IPO – Rs 550 Mn Acquired Pharma products raised Taro 2019 2018 2016 2015 2014 Acquired Global Agreement with rights for Acquired Acquired Acquired InSite Merck for in- Cequa & Ranbaxy Acquired Pola B
Slide 55: Key deals & rationale
Key deals & rationale Year Deals Country Rationale Addition of product to specialty portfolio. 2023 In-licensed Sezaby US Treatment of neonatal seizures Add a late-stage specialty product to 2023 Acquired Concert Pharma in US US dermatology franchise. Treatment of alopecia areata Acquired Uractiv Po
Slide 56: Key deals & rationale
Key deals & rationale Year Deals Country Rationale 2018 Acquired Pola Pharma in Japan Japan Access to Japanese dermatology market Acquired global rights for Cequa & Enhance specialty pipeline. Treatment of dry eye and locally 2016 Global Odomzo acting Basal Cell Carcinoma respectively Local manufact
Slide 57: Sun Pharma - focus areas
Sun Pharma - focus areas • Enhance share of specialty/branded business US business • Continue to focus on complex generics and high entry barrier segments • Ensure broad product offering to customers across multiple dosage forms • Focus on productivity enhancement India • Maintain leadership positio
Slide 58: Sun Pharma - focus areas
Sun Pharma - focus areas • Unwavering focus on sustainability, built on a legacy rooted in caring for people, communities and the planet. Sustainability • Committed to Governance, Community upliftment, Access to affordable healthcare & Environment conservation • Focus on developing complex products
Slide 59: Sun Pharma at a glance
Sun Pharma at a glance Leading global specialty generic company* Global presence Operates in over 100 countries Diversified business Specialty products, branded generics, generics & APIs Global Specialty Focused therapy approach, commercial infrastructure in key markets US Generics 10th largest in U
Slide 60: Thank You
For more information please contact Investors Thank You Dr. Abhishek Sharma Tel : +91 22 4324 4324, Xtn 2929 Tel Direct +91 22 4324 2929 abhi.sharma@sunpharma.com Corporate Address SUN HOUSE, CTS No. 201 B/1, Western Express Highway, Goregaon (E), Mumbai 400063 © 2017 Sun Pharmaceutical Industries L
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