Sun Pharmaceutical Industries Limited · NSE:SUNPHARMA
Sun Pharmaceutical Industries — Investor Presentation (March 2024)
60 slides from Sun Pharmaceutical Industries's investor presentation, March 2024
Slide 1: Creating Lasting Value
Creating Lasting Value Investor Presentation - March 2024 NSE:SUNPHARMA | BSE:524715 | Bloomberg:SUNP IN | Reuters:SUN.BO WWW.SUNPHARMA.COM
Slide 2: 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 3: Sun Pharma
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 © Sun Pharmaceutical Industries Limited. All Rights Reserved. 3
Slide 4: Sun Pharma at a glance
Sun Pharma at a glance World’s 4th largest 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 14th largest in US generics market## I
Slide 5: 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. © Sun Pharmaceutical Industries Limited. All R
Slide 6: Impressive track record of growth
Impressive track record of growth (All Figures in Rs Bn) CAGR for FY08-FY23 433 116 86 270 56 36 Adjusted 49 33 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 7: 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 8: 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 9: Business operations
Business operations © Sun Pharmaceutical Industries Limited. All Rights Reserved. 9
Slide 10: 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 580 approved products ⚫ Ranked No.1 with 12 classes of prescribers ⚫ 14th largest generics company in US* with a strong ⚫ Leadin
Slide 11: 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 12: ESG Performance - FY 2022-23
ESG Performance - FY 2022-23 Environmental Social Governance Energy Employee wellbeing Corporate Governance • 32% Energy sourced from • Great Place To Work® Certified • 96.3% Average Board meeting renewable sources • 7,619 new hires attendance • 7% reduction in absolute Scope 1 • 14.94% gender diver
Slide 13: Global Specialty
Global Specialty © Sun Pharmaceutical Industries Limited. All Rights Reserved. 13
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: Global Specialty pipeline
Global Specialty pipeline Route of Mechanism of Asset Indication Preclinical Phase 1 Phase 2 Phase 3 Registration administration action CTP-543 alopecia areata Oral JAK Inhibitor (deuruxolitinib) Ilumya psoriatic IL-23 Injection (tildrakizumab) arthritis Antagonist Nidlegy™ skin cancer Injection Imm
Slide 19: US Formulations
US Formulations 31% of FY23 Revenues © Sun Pharmaceutical Industries Limited. All Rights Reserved. 19
Slide 20: US highlights
US highlights Significant Specialty presence/14th largest in US Generics* Dermatology segment Ranked 2nd by prescriptions## in the US dermatology market Wide basket of 624 ANDAs & 67 NDAs filed and 529 ANDAs & 54 Comprehensive portfolio** NDAs approved across multiple therapies Robust pipeline** 95
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 22
Slide 23: ANDA & NDA pipeline
ANDA & NDA pipeline ANDAs filed and approved (cumulative) NDA filed and approved (cumulative) 616 624 595 605 571 581 512 519 526 501 483 453 67 67 67 64 59 60 55 55 54 54 54 52 FY19 FY20 FY21 FY22 FY23 Q3FY24 FY19 FY20 FY21 FY22 FY23 Q3FY24 Cumulative products filed Cumulative products filed Cumula
Slide 24: India Branded Formulations
India Branded Formulations 32% of FY23 Revenues © Sun Pharmaceutical Industries Limited. All Rights Reserved. 24
Slide 25: India highlights
India highlights Largest Pharma company in India Market position** Largest Pharma company in India with 8.4% 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 Dec 2023 (Rs mn) 164,520 Sun Pharma 8.5% 123,490 Abbott + Abbott HC + Novo 6.4% 100,400 Mankind 5.2% 99,230 Cipla 5.1% 74,790 Zydus 3.9% 71,260 Torrent 3.7% 68,220 Alkem + Cachet + Indchemie 3.5% 66,140 Lup
Slide 27: India: revenue progression
India: revenue progression Sales in Rs Bn Therapeutic breadth** Others Opthalmology 2% 4% Cardiology Gynaecology, 3% 17% 136 Urology, 4% 128 Vitamins / Minerals / 103 Nutrients, 5% 97 Respiratory 5% Market Share Neuro-Psychiatry 73 Dermatology, 6% 8.5% 16% Diabetology 7% Pain / Analgesics 8% Gastroe
Slide 28: Leadership across therapeutic areas
Leadership across therapeutic areas* Ranked number 1 with 12 prescriber categories* Prescription ranking Specialist Oct ‘19 Oct ‘20 Oct ‘21 Oct ‘22 Oct ‘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 Dermatologists 1 1
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 © Sun Pharmaceutical Industries Limited. All Rights Reserved. 30
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 © Sun Pharmaceutical Industries Limited. All Rights Reserved. 32
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 34
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 © Sun Pharmaceutical Industries Limited. All Rights Reserved. 36
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 380 APIs Pipeline development 10-20 APIs scaled up annually Regu
Slide 38: Research & Development
Research & Development © Sun Pharmaceutical Industries Limited. All Rights Reserved. 38
Slide 39: Research & Development
Research & Development Cumulative R&D spend of ~Rs 250 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** 23.7 624 67 501 3,119 21.5 22.2 19.8 19.8 529 54 386 2,252 FY19 FY20 FY21 FY22 FY23 Filed Approved Filed Approved Filed Approved Filed Granted ** Excludes expired/abandoned patents R&D inves
Slide 41: Global Manufacturing
Global Manufacturing © Sun Pharmaceutical Industries Limited. All Rights Reserved. 41
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
Key Financials © Sun Pharmaceutical Industries Limited. All Rights Reserved. 45
Slide 46: Summary Financials
Summary Financials Market capitalisation Rs 3,740 Bn / US$ 45 Bn (as of 13th Mar 2024) ( 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 © Sun Pharmaceutical Industries Limited. All Rights Reserved. 47
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 © Sun Pharmaceutical Industries Limited.
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 Q3 FY24
Key Financials Q3 FY24 ( All Figures in Rs mn ) Q3 FY24 Q3 FY23 CHANGE 9m FY24 9m FY23 CHANGE Gross Sales 121,569 111,002 9.5% 359,451 325,533 10.4% Revenue from operation 123,807 112,410 10.1% 365,140 329,550 10.8% Gross Profit 94,199 82,965 13.5% 276,629 241,414 14.6% Gross Margin 77.5% 74.7% 77.0
Slide 52: Sales split Q3 FY24
Sales split Q3 FY24 ( All Figures in Rs mn ) Q3 FY24 Q3 FY23 CHANGE 9m FY24 9m FY23 CHANGE Formulation India 37,785 33,919 11.4% 111,814 102,390 9.2% US 39,736 34,660 14.6% 113,948 100,009 13.9% Emerging Markets 20,946 21,158 -1.0% 65,847 60,773 8.3% ROW # 17,797 15,563 14.4% 50,838 44,682 13.8% Sub
Slide 53: Company history and key deals
Company history and key deals © Sun Pharmaceutical Industries Limited. All Rights Reserved. 53
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 Taro raised 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 New anti-cancer biopharmaceutical for the treatment 2023 In-licensed Nidlegy™ Europe, ANZ of melanoma and non-melanoma skin cancers Addition of product to specialty portfolio. Treatment of 2023 In-licensed Sezaby US neonatal seizures Add a late-stag
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 World’s 4th largest 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 14th largest in US generics market## I
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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