Morepen Laboratories Limited · NSE:MOREPENLAB
Morepen Laboratories — Investor Presentation (January 2018)
55 slides from Morepen Laboratories's investor presentation, January 2018
Slide 1: Investors Presentation January 2018
“ I CHOOSE INVESTORS PRESENTATION JANUARY 2018
Slide 2: Disclaimer
Disclaimer: This presentation has been prepared by Morepen Laboratories Limited (“Company”) solely for information purposes without regard to any specific objectives, financial situations or informational needs of any particular person. This presentation contains expressed or implied forward looking
Slide 3: Contents
Contents: 1. The Joyful Journey of 30 years Page 4 2. World Class Facilities Page 5 3. Business Segments Page 8 4. API Business Page 11 5. Diagnostics Business Page 23 6. 7. Branded Generics “ Over the Counter –OTC Products Page 28 Page 33 8. Financials Page 39 9. SWOT Analysis Page 43 10. Managemen
Slide 4: A Joyful Journey of 30 years
A Joyful Journey of 30 years A humble beginning by a first generation entrepreneur Late Sh. K. B. Suri in 1984 with six people. Started manufacturing semi-synthetic penicillins with enzymatic technology. Started investing in R&D and developed new molecules like Loratadine and Cisapride in 1996. Has
Slide 5: World Class Facilities
World Class Facilities Three well equipped manufacturing facilities in Himachal Pradesh (HP) India. The main API plant at Masulkhana has been built up on 7 acres of land and has two manufacturing units. Integrated pharma plant at Baddi spread over 60 acres of land has got ten manufacturing units for
Slide 6: World Class Facilities: Production Unit P10 at Baddi
World Class Facilities Production Unit –P10 at Baddi (HP) 6
Slide 7: World Class Facilities: Unit I & II at Masulkhana
World Class Facilities Unit-I & II at Masulkhana (HP) 7
Slide 8: Business Segments
Business Segments Morepen has four clearly defined business segments within the pharmaceutical space. The company started as a bulk drug manufacturer and Active Pharmaceutical Ingredients (API) and still scores 60% of its business through this segment in both export and domestic market. In 2001 it l
Slide 9: Significant upward journey begins
Significant upward journey begins ₹ crores Substantial growth in revenues across all business segments with CAGR of 16% for last five years speaks about the dedicated efforts of the team. Expanding the product offerings, on-ground coverage and reach to Increasing Gross Revenues the end customers hav
Slide 10: All segments stack up for high growth
All segments stack up for high growth ₹ crores All business segments are catching to deliver the substantial growth year after year and now poised for sizeable jump in revenues. In last 5 year sales have registered a CAGR of 15% out of which API and OTC have recorded a CAGR of 16% while Diagnostics
Slide 11: API Business
API Business Production Units P1-P10 in Baddi (HP) 11
Slide 12: API: Portfolio of Block Buster Drugs
API : Portfolio of Block Buster Drugs Loratadine • Anti-Allergy Desloratadine • Anti-Allergy Over twenty block buster APIs being manufactured under cGMP guidelines at Baddi and Masulkhana (HP). Montelukast • Anti-Asthmatic World’s largest generic player of Atrovastatin •Cholesterol reducer Loratadin
Slide 13: International Regulatory Approvals
International Regulatory Approvals Both API plants at Masulkhana and Baddi in Himachal are approved by international regulatory agencies and there are no pending deficiencies. API Facility API Facility Finished Dosage Masulkhana (HP) Baddi (HP) Parwanoo •US FDA •EU GMO Slovenia (2 plants) TGA Austra
Slide 14: International DMFs Filings
International DMFs Filings Company has a very strong regulatory department and has filed 45 Drug Master files for all APIs with international documentation and validation data. Six Certificate of Suitability (COS) applicable in 28 European countries. 14
Slide 15: Research & Development
Research & Development Highly skilled, dedicated team of R&D at main API plant at Masulkhana (HP) with focus on new product pipeline, cost reduction and new processes. All the products launched so far by the company have been developed in-house and also have a strong pipeline ready. 15
Slide 16: R&D: Specialized Chemical Synthesis
R&D: Specialized Chemical Synthesis Strong chemistry skills developed by R&D department give cutting edge advantage to the the company to adopt new processes at minimal costs. 16
Slide 17: R&D: Specialized Chemical Synthesis
R&D: Specialized Chemical Synthesis Specialized chemistry skills give an extra advantage to the company to adopt new processes and gives an opportunity for cost reduction 17
Slide 18: R&D: Intellectual Property (IP)
R&D: Intellectual Property (IP) Thanks to the advanced skills and consistent effort of the R&D team, the Company had filed 54 International Patents with World Intellectual Property Office (WIPO) and other relevant country offices including India. Strenuous efforts are made to focus on process simpli
Slide 19: R&D: Versatile Product Pipeline
R&D : Versatile Product Pipeline Alogliptin Benzoate • Anti- Diabetic Canagliflozin Hemihydrate • Anti-Diabetic Empagliflozin • Anti-Diabetic Lesinurad • Plumonary. Arterial Over ten new molecules in advance Hypertension stage of development with non- infringing process, with excellent impurity prof
Slide 20: API Export to over 75 countries
API Export to over 75 countries MOREPEN PRECENSE WORLD WIDE 20
Slide 21: Expanding International Base
Expanding International Base ₹ crores Consistent growth in API revenues with CAGR of 16%, Exports have also grown at the CAGR of 12% for five years. Loratadine retains the major share of export Increasing API Topline 340 followed by Atorvastatin and Montelukast which is expected to increase in comin
Slide 22: Increasing Domestic Presence
Increasing Domestic Presence ₹ crores While Exports have grown at CAGR of 15% (RS.245 crores for FY17) domestic market is also on a fast track With a wide range of international quality products in Quantum Jump in the Domestic Sales of APIs 111 the basket, the company has established its base in 96
Slide 23: Diagnostics Business
Diagnostics Business 23
Slide 24: Lifestyle Home Diagnostic Products
Lifestyle Home Diagnostic Products With increasing urbanization, education and health awareness, more and people are using Diagnostics Products at home for day to day testing. Company launched the Brand Home Health under the umbrella brand of Dr. Morepen in 2001. Large sales team in India with over
Slide 25: Lifestyle Home Diagnostic Products
Lifestyle Home Diagnostic Products 25
Slide 26: Market leaders for Gluco Monitors
Market leaders for Gluco Monitors India is known as the Diabetes Capital of the world and it is estimated that India has over 60 Million Diabetics as per a WHO report. Morepen with a installed base of around 1.7 million Blood Glucose Monitors users and touching 2 Million by March’18. Morepen is the
Slide 27: Exponential Growth in Business
Exponential Growth in Business ₹ crores With increased focus of cost reduction and customer service, Diagnostics business has grown at the rate of 20% CAGR for last five Exponential Growth in Diagnostic Devices Sales years in a row. 77 79 This is led by jump in Gluco Monitor sales with 60% share in
Slide 28: Branded Generics
MOREPEN The Joy Of Growing Together 28
Slide 29: High Quality Prescription Drugs
High Quality Prescription Drugs A portfolio of 400 products in various therapeutic categories available at chemist shops against prescription under MOREPEN brand Highly trained sales team is positioned in all major cities. Other than Gastro and Antibiotics, the team has high focus on nutritional pro
Slide 30: Extensive Range of Branded Products
Extensive Range of Branded Products 30
Slide 31: Extensive Range of Generic Products
Extensive Range of Generic Products 31
Slide 32: Large foot print: All round growth
Large foot print: All round growth ₹ crores Morepen enjoys a reputation of being a quality player in the trade and in the medical fraternity. This has given huge push in the sale of branded and generic 110 107 Growth of Branded Generics drugs of the company in the trade and institutional sales 100 9
Slide 33: Over the Counter - OTC
‘The Joy Of Growing Together
Slide 34: Lifestyle Brand for Health & Fitness
Lifestyle Brand for Health & Fitness Lifestyle brand for upwardly mobile consumers who want the control of their health. Dr. Morepen given “Health in your hands”. Dr. Morepen has started its journey outside the doctor’s chamber and is first of its kind effort by any pharma company. Dr. Morepen has e
Slide 35: Full basket of Health Products
Full basket of Health Products 35
Slide 36: High Recall Brands: Burnol & Lemolate
High Recall Brands: Burnol & Lemolate Dr. Morepen reaches out to every nook and corner the country including rural market and whole sale market because of the hi-recall brands like Burnol and Lemolate which company had acquired 15 years ago. Burnol has legacy of 70 years and is used in every househo
Slide 37: Healthy Growth: Future Ready
Healthy Growth: Future Ready ₹ crores Dr. Morepen brand is fast growing at the CAGR of 14% since last five years and has established its distribution network 55 and reach to the last consumer. Growth of Dr. Morepen 49 50 As a strategy to reach to the small towns and villages where regular distributi
Slide 38: Dr. Morepen Nation On Wellness: NOW
Dr. Morepen Nation On Wellness: NOW This is new initiative of Dr. Morepen where in consumer is empowered to stay Hear- Fit with a special technique call ECP (External Counter Pulsation) in collaboration with Renew. ECP treatment improves blood circulation and develops natural by- pass for blocked ar
Slide 39: Financials
‘The Joy Of Growing Together INANE INES)
Slide 40: Exceptional Operational Performance
Exceptional Operational Performance ₹ crores 574 Turnaround performance with sizeable growth in revenues with focus on high Un-paralleled Growth Trajectory 469 541 value products, volume growth and cost 385 reduction has resulted in improving the 454 352 321 margins to a large extent. 280 372 337 20
Slide 41: Company Turned In Green After A Decade
Company Turned In Green After A Decade ₹ crores Sustained growth in EBIDTA has given 23 Net Profit after tax 22 quantum jump in Cash Profits of the 16 company. 1 Net profit margins have slowly turned positive from a loss of Rs.157 crores loss in FY’07. FY08 FY09 FY10 -2 FY11 FY12 FY13 FY14 FY15 FY16
Slide 42: Company becomes Debt Free
Company becomes Debt Free ₹ crores 750 The company had peak outstanding debt of Rs.750 crores with 43 banks in FY’05 which was restructured through CDR Outstanding Debt going down Scheme of RBI in July 2005. with an upfront payment of OTS amount of Rs.150 crores. 341 The residual debt of Rs.147 cror
Slide 43: SWOT Analysis
SWOT ANALYSIS WEAKNESSES THREATS | STRENGTHS VW OPPORTUNITIES :
Slide 44: SWOT Analysis
SWOT Analysis Weaknesses: Strengths: • Working capital constraints due to repayment • Very strong R&D Chemistry & and robust product commitments to banks for next six months. pipeline • Extremely efficient QC systems and documentation • Not able to fulfil all the market demand and many and unmatched
Slide 45: SWOT Analysis (contd.)
SWOT Analysis (contd.) Opportunities: Threats: • Huge scope for increasing API product line and • Delay in regulatory approvals due to unforeseen capacity with nominal capex. industry factors related to plants and product • Opportunity to launch many new APIs from the R&D sometimes delay the product
Slide 46: Management
MOREPEN ‘The MANAGEMENT Talent wins games, but teamwork and intelligence wins championships. Michael Jordan
Slide 47: Young Management Team
Young Management Team Sanjay Suri Varun Suri CEO-API CEO-Dr. Morepen Anubhav Suri Kushal Suri CEO- Diagnostics Corp. Affairs Sushil Suri CMD Ajay Sharma Thomas Joshua CFO 47 Comp. Secy.
Slide 48: Strong Operations Team
Strong Operations Team Shantanu Tuli Piyush Tandon Rajeev Jain Amita Sharma M. K. Sharma Dr. M. P. Tanwar B. J. Lamba Manoj Kaushik VP-Sales & Marketing VP- Sales & Marketing AVP- Acct.& Finance AVP- Product & PPC AVP- QC & QA AVP- R&D AVP- HR & Admin AVP- Manufacturing Diagnostics API Formulations
Slide 49: Quarterly Results
QUARTERLY RESULTS 49
Slide 50: Synopsis of FY18-Q3 Performance
Synopsis of FY18-Q3 Performance ₹ crores Q3 Q3 % Consolidated Consolidated (17-18) (16-17) Growth (17-18) (16-17) Net Revenue 142.74 139.05 3% 155.89 147.24 Expenditure 124.57 123.71 1% 136.84 131.94 EBIDTA 18.17 15.34 18% 19.05 15.30 Interest 0.90 2.23 (60%) 0.91 2.25 Cash Surplus 17.27 13.11 32% 1
Slide 51: Synopsis of FY18-9M Performance
Synopsis of FY18-9M Performance ₹ crores 9 months 9 months % Consolidated Consolidated (17-18) (16-17) Growth (17-18) (16-17) Net Revenue 406.03 403.63 1% 438.47 429.57 Expenditure 356.89 356.15 0.2% 388.30 381.65 EBIDTA 49.14 47.48 3% 50.17 47.92 Interest 3.50 6.32 (45%) 3.55 6.39 Cash Surplus 45.6
Slide 52: Major growth in EBIDTA & Net Profit
Major growth in EBIDTA & Net Profit ₹ crores For the Quarter: 143 18 9.7 139 15 4.7 3% 18% 107% FY17-Q3 FY18-Q3 FY17-Q3 FY18-Q3 FY17-Q3 FY18-Q3 Q3 Net Revenue Q3 EBIDTA Q3 Net Profit For 9 months 49 22 406 16 404 47 1% 3% 38% FY17-Q3 FY18-Q3 FY17-Q3 FY18-Q3 FY17-Q3 FY18-Q3 9m Net Revenue 9m EBIDTA 9
Slide 53: Domestic APIs & Diagnostics zoom
Domestic APIs & Diagnostics zoom ₹ crores For the Quarter: 28 44 16 18 27 10 59% 53% 61% FY17-Q3 FY18-Q3 FY17-Q3 FY18-Q3 FY17-Q3 FY18-Q3 Q3 Domestic API Sales Q3 Diagnostics Sales Q3 Glucometers Sales For 9 months 110 48 79 74 58 33 49% 3% 45% FY17-Q3 FY18-Q3 FY17-Q3 FY18-Q3 FY17-Q3 FY18-Q3 9m Domes
Slide 54: Highlights of FY18-Q3 Performance
Highlights of FY18-Q3 Performance ₹ crores • 107% increase in Net profit at Rs.9.67 Crore Cash profits increase by32% • EBIDTA growth by 18% • Net Sales Revenue marginally up by 1.9% at Rs.140 crore. • Domestic Sales are up by 25 per cent at Rs.103 crore. • Exports turnover stood at Rs.37 crore. • I
Slide 55: Thank You
Tran You By MOREPEN The Joy Of Growing Together
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