Dr. Reddy's Laboratories Ltd. · NSE:DRREDDY
Dr. Reddy's Laboratories — Investor Presentation (August 2009)
31 slides from Dr. Reddy's Laboratories's investor presentation, August 2009
Slide 1: Dr. Reddy's Laboratories Ltd. Investor Presentation August 2009
Dr. Reddy’s Laboratories Ltd. Investor Presentation August 2009 LIFE . RESEARCH. HOPE
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation contains forward-looking statements and information that involve risks, uncertainties and assumptions. Forward-looking statements are all statements that concern plans, objectives, goals, strategies, future events or performance and underlying assumptions and
Slide 3: Agenda
Agenda Overview Key Updates Global Generics Pharmaceutical Services and Active Ingredients Proprietary Products Looking Ahead 3
Slide 4: Purpose and Strategy
Purpose: Providing affordable and innovative medicines for healthier lives Strategy: Leverage industry-leading science & technology, product offering and customer service with execution excellence 4
Slide 5: Overview
Overview Emerging global pharmaceutical company with 25 years of existence Amongst the largest Indian pharmaceutical companies • Revenue of $1.4 bn in FY09, CAGR of 25% in the last decade, International (ex-India) revenue 40% in FY00 to ~ 85% today. Strong vertically integrated portfolio of business
Slide 6: The Last Decade
The Last Decade Built the foundations for a strong business. Moved up the value chain. Strengthened capabilities. Achieved scale and global presence. Growth aided by acquisitions. Revenues [USD Mn] Sumatriptan Germany & Mexico acquisitions Growth of 39% in Simvastatin, Finasteride and rupee terms On
Slide 7: Key Milestones
Key Milestones 2009 Strategic alliance with GSK for Emerging Markets 2008 Acquisition of BASF’s facility at Shreveport, US 2008 Acquisition of Dowpharma’s Small Molecules business associated at Mirfield and Cambridge sites in UK 2007 World’s first biosimilar monoclonal anti-body, Reditux (rituximab)
Slide 8: Agenda
e TY Dr. REDDY'S Agenda @ Overview = Key Updates = Global Generics m Pharmaceutical Services and Active Ingredients m Proprietary Products m Looking Ahead
Slide 9: Strategic alliance with GSK for Emerging Markets
Strategic alliance with GSK for Emerging Markets Branded Generics & Differentiated Formulations o New Strategic alliance will combine Dr. Reddy’s portfolio of high quality branded pharmaceuticals together with GSK’s extensive sales and marketing capabilities o Covers more than 100 branded pharmaceut
Slide 10: Key Updates
Key Updates North America Generics Sumatriptan o Market Competition: GSK, Dr. Reddy’s, Teva and Ranbaxy. Our market share is ~ 50% o Multiple players to launch the product early Aug 2009 Omeprazole Mg OTC o Received FDA’s approval ; Expected product launch early Q3 Fondaparinux o ANDA accepted for a
Slide 11: Q1 FY10 Results
Q1 FY10 Results Revenues of $ 381 million, YoY growth of 21% EBITDA of $ 91 million, YoY growth of 90% PAT of $ 51 million, YoY growth of 120% One-time charges for a) field force exit costs of 7.2 mn in Germany b) Atlanta facility closure related costs of $ 1.5 mn Net debt of $ 208 million, 0.22 to
Slide 12: Agenda
Agenda Overview m Key Updates = Global Generics m Pharmaceutical Services and Active Ingredients m Proprietary Products m Looking Ahead e TY Dr. REDDY'S 12
Slide 13: Priorities for Global Generics
Priorities for Global Generics Deepening market presence Widening the scope of portfolio offering Supply chain excellence Addressing the need for infrastructure / capacity increase 13
Slide 14: Global Generics: North America
Global Generics: North America Revenue ($ Mn) 275 Excluding AG sales in FY07 / FY09 196 172 81 50 37 FY05 FY06 FY07 FY08 FY09 Q1 FY10 Portfolio of 50+ products, critical mass established o 20 products Top 3 position,15 products better than fair share of market o 3/4th of portfolio vertically integra
Slide 15: North America: Growing annuity of upsides
North America: Growing annuity of upsides Para IV – Assured 180 days exclusivity FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 Fluoxetine (FY02) Ondansetron Product A Product B Product C Product D Product E Para IV – Settlement / Go-Early FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 Sumatriptan Rivas
Slide 16: Global Generics: Germany
Global Generics: Germany Revenue (Euro Mn) 138 144 151 24 FY07 FY08 FY09 Q1 FY10 Increasing tender activities by other SHIs dominant emerging trend AOK tender supplies have begun in Jun 09 o Trends significant increase in AOK volumes & a fall in the volumes of non-AOK products o Clear trends yet to
Slide 17: Global Generics: India
Global Generics: India Revenue (Rs. Mn) 8,060 8,478 6,964 5,976 4,360 2,393 FY05 FY06 FY07 FY08 FY09 Q1 FY10 Rollout of supply chain excellence model pan-India progressing well Secondary growth gaining traction : Q1 FY10 growth of 15.5% vs. market growth of 13.2% (ORG IMS) Strengths : o Strong brand
Slide 18: Global Generics: Russia
Global Generics: Russia Revenue ($ Mn) 126 101 79 48 60 31 FY05 FY06 FY07 FY08 FY09 Q1 FY10 Market Rank : Pharma 13th ; Generics 5th (Source : MQT Jun 2009 Pharmexpert) Customers Business consolidated with top 4 distributors > 80% of our revenue > 80% of products vertically integrated OTC & Hospital
Slide 19: Agenda
Agenda m@ Overview m Key Updates m Global Generics = Pharmaceutical Services and Active Ingredients m@ Proprietary Products m@ Looking Ahead e ~ Y Dr. REDDY'S 19
Slide 20: Pharmaceutical Services & Active Ingredients
Pharmaceutical Services & Active Ingredients Revenue ($ Mn) 408 413 408 216 161 100 FY05 FY06 FY07 FY08 FY09 Q1 FY10 One of the largest portfolio of Customers include top generic manufacturers & innovators products globally : (as of Jun 09) o Top 2 leadership position globally in generic APIs o US D
Slide 21: Agenda
Agenda Overview m Key Updates m = Global Generics m Pharmaceutical Services and Active Ingredients = Proprietary Products m Looking Ahead e TY Dr. REDDY'S 21
Slide 22: Proprietary Products
Proprietary Products Our Proprietary products segment consists of Biologics Differentiated Formulations, and NCEs 22
Slide 23: Proprietary Products: Biologics
Proprietary Products: Biologics First Indian company to fully develop a biosimilar in-house, first to systematically tackle complex mammalian cell cultured derived products and first to develop and launch a biosimilar monoclonal antibody ‘Reditux’. Industry-leading portfolio of 9 products dominantly
Slide 24: Proprietary Products: Differentiated Formulations and NCEs
Proprietary Products: Differentiated Formulations and NCEs Long Term Vision Establish a leadership position in at least one of the chosen TAs / specialty physician audiences Achieve critical mass in terms of late-stage R&D and new product launches within our target TAs across both major markets and
Slide 25: Proprietary Products: NCEs
Proprietary Products: NCEs Key Development-stage Assets ! "# $%& ' ( , % , %% , %%% ! ! ) ! *+ # !! " !! " $ % & ' ( 25
Slide 26: Agenda
Agenda Overview m Key Updates m = Global Generics m Pharmaceutical Services and Active Ingredients m Proprietary Products = Looking Ahead e TY Dr. REDDY'S 26
Slide 27: Critical Success Factors
Critical Success Factors Key markets Product delivery Focus & Supply chain engine Depth excellence Vertical integration with cost, technology & IP leverage 27
Slide 28: Our Aspirations
Our Aspirations Improve depth in key Leadership markets through portfolio Global Generics position expansion and supply chain in key markets excellence Pharmaceutical Create compelling value for Services customers by leveraging Partner of & Active IP, technology and cost Choice Ingredients leadershi
Slide 29: FY10 Guidance
FY10 Guidance Continuing growth on a high base of FY09 Growth 10% Revenue (in rupee terms) RoCE Mid to high teens !
Slide 30: Financial Targets FY13
Financial Targets FY13 RoCE 25% Revenues $3 bn )*
Slide 31: Thank You
Thank You LIFE . RESEARCH. HOPE
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