Syngene International Ltd. · NSE:SYNGENE
Syngene International — Q3 FY20 Earnings Presentation
28 slides from Syngene International's earnings presentation, Jan 22, 2020
Slide 1: Cover letter to stock exchanges
Ref: Syn/CS/SE/IP/January/2019-20/85 January 22, 2020 Syngene ‘Syngene International Limited Biocon Park SEZ, Bommasandra IV Phase, Jigani Link Road, Bangalore 560 099, India T +91 80 2808 2808 F 491 80 4014 3150/2852 3423 CIN No, L85110K41993P.C014937 ‘www.syngeneintl.com To, The Manager Listing BS
Slide 2: Investor Presentation December 2019
Investor Presentation December 2019 Strictly confidential and privileged
Slide 3: Safe harbour
Safe harbour Certain statements in this release concerning our future growth prospects are forward-looking statements, which are subject to a number of risks, uncertainties and assumptions that could cause actual results to differ materially from those contemplated in such forward-looking statements
Slide 4: Introduction
Introduction Putting Science to Work
Slide 5: The Biocon Group and Syngene's Shareholding Pattern
Introduction The Biocon Group Syngene’s Shareholding Pattern1 ▪ Services Based ▪ Contract Discovery 28% ▪ Contract Development ▪ Contract Manufacturing Promoter Syngene 1% ESOP ▪ Product Based Public ▪ Biosimilars 71% Biocon ▪ Formulations and Compounds Biologics ▪ Alternative Therapeutic Drugs 4 1
Slide 6: Our Company at a glance
Our Company at a glance All figures in INR Mn unless otherwise specified Overview Track Record Quality and Certifications Scientific Ecosystem • Integrated Drug Discovery, • Collaborations and • Quality driven organization • ~1.5 Mn sq. ft. world-class Development and partnerships to deliver • Excel
Slide 7: Our Journey so far…
Our Journey so far… Foundation Globalization and strategic acquisition • Operations started • Expanded into formulations development • Expansion of R&D Lab • Contract with Endo Pharmaceuticals to develop novel anti cancer biological • Granted 100% Export Oriented Unit (EOU) therapeutic molecules sta
Slide 8: Putting science to work
Putting science to work Who we are and what we do ▪ Combining world class research talent and infrastructure with the Indian cost advantage ▪ Converting R&D to a variable cost for clients ▪ Moving beyond cost arbitrage to R&D productivity and innovation Key differentiators of growth Scalable Predict
Slide 9: Recent business highlights
Recent business highlights All figures in INR Mn unless otherwise specified Quarter highlights: P&L Summary Q3 FY20 Q3 FY19 YoY Change Revenue 5,391 4,844 11% • Steady revenue growth driven by strong performance from Discovery Services and Development Services EBITDA 1,735 1,579 10% • The Company re
Slide 10: Our Industry
Our Industry Putting Science to Work
Slide 11: Global CRO market
Global CRO market ▪ Global healthcare Contract Research Industry Statistics Organisation (CRO) market size is expected to reach USD 57.8 Bn by 2023 (USD Bn) ▪ Contract Manufacturing Organisation CRO- Market size and forecast CMO- Market size and Forecast (CMO) market size is expected to reach USD 11
Slide 12: Business overview
Business overview Putting Science to Work
Slide 13: We currently operate a range of successful collaboration models..
We currently operate a range of successful collaboration models.. Client Base FY 19 331 FY 18 316 FY 17 Dedicated R&D Labs FTE FFS 293 • Dedicated scientific resources • Flexible, on-demand • Dedicated scientific and FY 16 selected from partner-specified resources with targeted skill support personn
Slide 14: Our Dedicated R&D Centres are an industry leading model
Our Dedicated R&D Centres are an industry leading model Largest R&D Centre in Asia for Dedicated R&D Centre in India Exclusive R&D Centre for Amgen Herbalife’s 1st Nutrition BMS (2009). Contract extended for Baxter (2013). Contract Inc. in India (2016) Research and Development Lab till 2026 extended
Slide 15: Our platforms allow us to be a one-stop-shop
Our platforms allows us to be a “one-stop-shop” for discovery and development requirements.. Discovery Development Manufacturing Chemistry Drug Substance Clinical Supplies Drug Product Small Molecules Large Biology Molecules Integrated Drug Substance – HPAPI Drug Product Safety Assessment Specialty
Slide 16: Discovery Services: From target to a drug candidate
Discovery Services: From target to a drug candidate Candidate Hit to lead Lead optimisation Development selection Candidate Candidate 5 Lead Selection Development Compounds Exploratory PK, Tox and Developability Assessment 20 Lead In-Vivo DMPK Profiling, Compounds CADD 500 Lead Generation of focused
Slide 17: Development Services
Development Services ▪ Encompass activities across multiple disciplines as a molecule moves from pre-clinical to clinical trials Preclinical Studies ▪ Key activities include: Drug product ▪ Drug substance development (process R&D and optimisation) Drug Dvpt. Substance ▪ Drug product development (pre
Slide 18: Manufacturing Services
Manufacturing Services Small Molecules • State-of-the-art cGMP facility to manufacture NCEs • Designed to support multi gram to 100s of kgs/ batch of Intermediates and APIs for clinical trials; current capacity can support initial commercial supplies • New greenfield investment being made in Mangalu
Slide 19: We continue to invest in state-of-the-art infrastructure
We continue to invest in state-of-the-art infrastructure with due focus on people capabilities, compliant systems and processes HQ Campus – 90 Acres where most of Syngene’s capabilities are housed today R&D Expansion: Genome Valley, Hyderabad, India commenced operation in Aug 2019 Biologics Expansio
Slide 20: Multiple layers of growth
Multiple layers of growth Expand/Extend Existing Clients Capacity Expansion - High service integration - Consistent expansion - Dedicated centres model - FTE services, manufacturing, formulation, biologics, stability Engage New Clients - Tailored service offerings and Client Capacity dedicated perso
Slide 21: Highly experienced and qualified team of scientists
…supported by our highly experienced and qualified team of scientists ~4,000 Strong pool of scientists* 15% 11% 01 Create competitive edge over peers ~600 ~440 02 Deliver quality output to clients PhDs 03 Led by dedicated and experience management Master's team Degree Others We are one of the larges
Slide 22: Managing risks
Managing risks Risk Mitigation Inadequate client retention and Widening scope of engagement through new service offerings, Investment in client base growth business development activities. Information Technology threats and Regular evaluation and upgrade of systems/applications, Disaster recovery pl
Slide 23: Financial highlights
Financial highlights Putting Science to Work
Slide 24: Q3 and 9M FY20 financial highlights
Q3 and 9M FY20 financial highlights All figures in INR Mn unless otherwise specified Particulars Q3 FY20 Q3 FY19 YoY Change 9M FY20 9M FY19 YoY Change Revenue 5,391 4,844 11% 14,657 13,460 9% Material and Power costs 1,537 1,516 1% 4,090 4,117 (1%) Employee costs 1,523 1,189 28% 4,163 3,415 22% Gros
Slide 25: FY19 financial highlights
FY19 financial highlights All figures in INR Mn unless otherwise specified Particulars FY19 FY18 YoY Change Balance Sheet Highlights Revenue 19,007 14,849 28% Material and power costs 5,725 4,164 37% As on 31st March 2019 Employee costs 4,727 3,796 25% Gross Margin 8,555 6,889 24% Shareholders’ fund
Slide 26: Strong track record of growth with best-in-class profitability
Strong track record of growth with best-in-class profitability ▪ Growth driven by increase in sales from existing clients and acquisition of new clients ▪ “Engage, expand and extend” strategy to extend client relationship over a longer period of time ▪ Growth in total number of clients ▪ Increase in
Slide 27: Industry recognition for scientific capability and best practices
We have consistently received industry recognition for our scientific capability and best practices • Ranked as one of the 25 fastest growing companies in India by Outlook Business • CMO Leadership Awards 2019 - Presented by Life Science Leader Magazine • FICCI CSR Award for Environmental Sustainabi
Slide 28: Thank you
THANK YOU For more details www.syngeneintl.com • Visit www.syngeneintl.com • IR Contact : Chanderlekha Nayar +91 80 6775 8821 +91 725 919 2001 chanderlekha.nayar@syngeneintl.com Putting Science to Work
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