Laurus Labs Ltd. · NSE:LAURUSLABS
Laurus Labs — Investor Presentation (November 2023)
32 slides from Laurus Labs's investor presentation, Nov 24, 2023
Slide 1: Exchange filing cover letter
November 24, 2023 To To The Corporate Relations Department The Listing Department BSE Limited National Stock Exchange of India Limited Phiroz Jeejeebhoy Towers, 25th Floor, Exchange Plaza, Dalal Street Bandra Kurla Complex, Bandra (East) Mumbai – 400001 Mumbai – 400 051 Code: 540222 Code: LAURUSLABS
Slide 2: Investor Presentation November 2023
Investor Presentation November 2023
Slide 3: Safe Harbor Statement
Safe Harbor Statement This presentation contains statements that constitute “forward looking statements” including and without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to our future business developments and economic performance. W
Slide 4: Delivering on our Vision to Offer Integrated solution to Global pharma
Delivering on our Vision to Offer Integrated solution to Global pharma Integrated offerings Laurus Vision Client relationships To become a leading player in offering integrated Evolving Technology solutions to global pharmaceutical needs in platforms creating a healthier world Laurus One world One q
Slide 5: Our Company Today: Integrated approach to operational excellence
Our Company Today: Integrated approach to operational excellence Value Chain Discovery Development Manufacturing Packaging Marketing >> Offers Integrated approach 6,500+ employees worldwide 6 global regulatory agencies 12 production facilities & 3 R&D site Manufacturing & Quality 1025+ quality audit
Slide 6: Transforming Laurus with Focus & Agility
Transforming Laurus with Focus & Agility One Product API Company Formulation Integrated Pharma ₹ 6,041 Cr 26.4% Laurus Evolution Revenues EBITDA 2006-2011 2011-2016 2016-2021 Today As on FY 2023 Small molecule APIs Formulation/DP ARV4 API supplier Cell & Gene therapy6 (Diabetic/CV, CNS Mic
Slide 7: Transformation over Last 5 Years - Diversified underlying business growth
Transformation over Last 5 Years - Diversified underlying business growth Strong growth through robust model Diversification of Laurus business 125 FY 18 FY 23 ₹ 2,056 Cr ₹ 6,041 Cr 1 [₹ Crores] 1972 2% 6,041 402 36% 37% 744 742 ARV 7% 73% 18% 2,056 +18% CAGR (ex PO1) + 24% CAGR on reported basis AR
Slide 8: Enabling customer with our Leading commercial scale offering
Enabling customer with our Leading commercial scale offering Reactor Volumes Drug Product Capacity Fermentation Capacity Over 4x increase Expanded 18x since acquisition Over 5x increase 7,480 190 Reactor Capacity 10 Fermentation Oral Solids (KL) (KL) (billion) 4,638 5 1,870 2 10 220 FY06-11 FY11-16
Slide 9: Optimisation of FY22-24 Capex to drive growth
Optimisation of FY22-24 Capex to drive growth Laurus asset turns is low and is Growth Capex FY22-24 (by phase) Optimisation underway expected to reach optimal levels Indicative # Large projects by phase 2 Indicative Over 60% of the Capex into ~₹ 2.5bn 2 API/FDF yet to meaningfully 1,050 scale-up 1
Slide 10: Healthy OCF and Balance sheet to support growth investments
Healthy OCF and Balance sheet to support growth investments Operational Cash Flows Leverage Profile 3.1x [₹ Crores] 994 911 2.5x 733 2.0x 1.9x 474 1.2x 1.2x 0.9x 296 211 199 FY18 FY19 FY20 FY21 FY22 FY23 1HFY24 FY18 FY19 FY20 FY21 FY22 FY23 1H FY24 OCF Net Debt-to-EBITDA Committed to Healthy Balance
Slide 11: Financial Highlights FY 2018 till date
Financial Highlights FY 2018 till date Revenues Gross Margins % [₹ Cr] 6,041 4,814 4,936 55.2% 55.5% 54.1% 51.6% 48% 50% 46% 2,832 2,406 While GPM maintained 2,292 at healthy levels… 2,056 FY18 FY19 FY20 FY21 FY22 FY23 1HFY24 FY18 FY19 FY20 FY21 FY22 FY23 1HFY24 EBITDA & Margins % 2000 RoCE^ 42.0% 1
Slide 12: Manufacturing & Development network well Invested
Manufacturing & Development network well Invested Visakhapatnam Parawada Hyderabad Bangalore U1 U3 U5 LSPL U1 Sriam Lab R1 R2 API CDMO API CDMO^ API CDMO API Intermediates Bio-Ingredients Bio-Ingredients 336 R1 296 R & R&D 53 R 42 R + 3 AGR2 31 R 5 Fermenters & R&D 4 Fermenters 1,256 KL 2,317 KL 161
Slide 13: CDMO – Recognized Industry player & Strong scientific capabilities
1 CDMO – Recognized Industry player & Strong scientific capabilities Strategic Priorities Revenue Growth Successful PO execution w/Top MNC at incredible Speed & Scale Cross-selling broad range CDMO capability to access new market (like CDMO (ex-PO) PO enhancing LL’s visibility to win more business
Slide 14: Delivering our existing CDMO growth projects
Delivering our existing CDMO growth projects LSPL-U2 Visakhapatnam, 2022 and Now CDMO R&D Hyderabad (to be opened in Mar’24) Focus to built diversified CDMO Total Area: 2,00,000 sft engine beside riding momentum in NCE clinical projects Fix 1.5 yr ago snap same angle Animal Health CDMO manufacturi
Slide 15: Driving CDMO momentum Select case studies
Driving CDMO momentum Select case studies … Case Study 1: Record execution of large Purchase Order with Big pharma Customer # A; Winning trust from Global Clients with our integrated CDMO platform, as well as efficient and high quality R&D and Scale manufacturing What we Achieved in just 1 Year $150
Slide 16: Driving CDMO momentum Select case studies
Driving CDMO momentum Select case studies Case Study 2: Agreement with Big pharma Customer # B for Case Study 3: Multi-year contract with Customer # C, leading Crop Animal health API development evidences Laurus solid Process Protection player demonstrates leading Process development chemistry and h
Slide 17: ARV business impact started to stablise & retain market leadership
ARV business impact started to stablise & retain market leadership Well positioned to stabilize ARV sales ~ ₹2.5bn range Better demand visibility in T,L,D1 with all global Clients in medium-term Developed Novel formulation of pDTG based on new technology Post covid ARV de- and received USFDA app
Slide 18: FDF - Differentiated Pipeline & Integrated approach
2 FDF - Differentiated Pipeline & Integrated approach Strategic Priorities Revenue Growth Build Scale, Optimise & Leverage API+ integrated approach to deliver NON-ARV ARVs CAGR FY19-23: ▲114% best quality drugs and consistent supplies 1,880 Post covid ARV 1H FY24: ▲24% Expand CMO focused opportu
Slide 19: Developed markets Pipeline Break down
Developed markets Pipeline Break down 51.3 [US$ Bn] Others (23), 7 Addressing the >US$ 80bn CNS (6), 2 market opportunity CVS (8), 8 Total 29.3 Addressable CNS (4), 1 Others (11), 1 CVS (3), 3 Diabetes (8), 15 (>65% in Non-ARV space) Market1 (by therapy) Diabetes (8), 17 ARV (17), 20 Extensive pip
Slide 20: Visakhapatnam FDF Site expansion completed
Visakhapatnam FDF Site expansion completed Unit - 2 Total Area: 45 acres New Capability – Spray Dried Old 5 Bn Capacity dispersion, Continuous Tab Phase 1 Manufacturing line, Oral Dispersible Films, Labeling and packaging for 5 Bn units New block commercial products commissioned in FY23 Phase 2 Capa
Slide 21: API – Deploy Technical capabilities with Focus on High growth segment
3 API – Deploy Technical capabilities with Focus on High growth segment Strategic Priorities Revenue Growth ARV Onco Other API Accelerate cost leadership & Clear focus on commercial strategy CAGR FY18-23: ▲7% New CMO partnership in established and high growth molecules (like [₹ Cr] 2,621 2,609 1
Slide 22: Visakhapatnam API Site expansion completed
Visakhapatnam API Site expansion completed Unit - 4 Total Area: 44 acres ~2,000 KL total reactor volume Reactor Size: 500L to 3000L Key Capability – High potent APIs, 4 New Block commissioned Continuous flow, Hydrogenation in FY23 (100L-10KL with ability to handle upto 40 bar pressure conditio
Slide 23: Other Large API Sites
Other Large API Sites Unit - 1 Unit - 3 Key Capability – HP APIs (OEB-4 and 73 Key Capability – HP APIs (OEB-4 and Acres site OEB-5 <1 μg/m3, Prep-HPLC, SMB, OEB-5 <1 μg/m3), Spray Dried Dispersion, Micronization (Potent) 3300+ KL Wet Milling, Prep-HPLC, Bio-catalysis Reactor reaction, Microniza
Slide 24: Strategic Investments - Journey towards Delivering cutting-edge technologies
Strategic Investments - Journey towards Delivering cutting-edge technologies Recent Collaboration and Initiative Increasing stake to ~88% Precision Integrated offering with capabilities across rh- Fermentation September 2023 Protein, Bio-catalysis & precision fermentation In-licensed few gene
Slide 25: BIO – Enhanced technological edge through Fermentation & biotech knowhow
4 BIO – Enhanced technological edge through Fermentation & biotech knowhow Strategic Priorities Revenue Growth Expand Enzymatic / bio-catalysis application in small molecules CDMO [₹ Cr] CAGR FY21-23: ▲46% 125 Access emerging market opportunities in Nutrition, Health/Personal Care 1H FY24: ▲56%
Slide 26: NexCAR19
Achieved breakthrough innovation Now Approved India’s first indigenously developed CAR-T cell therapy, NexCAR19 granted marketing approval from CDSCO on NexCAR19 October 12, 2023 (Actalycabtagene autoleucel) Treatment eligible for Adult patients with relapsed or CAR-T Product refractory B-cell l
Slide 27: Strong commitment to Environment & ESG
Strong commitment to Environment & ESG ESG Focus on UN SDG Priorities Ongoing investments into Green Technology Platforms Bio-catalysis Continuous Flow Chemistry Sustainability Sustainability Management across All Sites Technologies Carbon Emission Intensity (FY23 vs. 22 per Revenue): 6%^ Well
Slide 28: Strategic Priorities to drive sustainable growth
Strategic Priorities to drive sustainable growth Build a bigger moat for CDMO and CMO service business and capitalise on 1 diversification of Outsourcing and Dual souring trend Leverage comprehensive capabilities and Technology links to further enhance Company 2 positioning and fully capture cross b
Slide 29: Appendices
Appendices 28 Investor Presentation | November 2023
Slide 30: 1H FY24: Executive Summary
1H FY24: Executive Summary Overall performance resilient ex-PO1 ; Core growth rebounding on healthy demand environment in API and FDF business. CDMO business project pipeline scaled up along with expansion of our strategic manufacturing partnerships ₹ 2,406 Cr Revenues for H1, declined 23%. Excl
Slide 31: 1H FY24 – Financial Performance
1H FY24 – Financial Performance Core growth rebounding on healthy demand environment 1H/FY24 Consolidated Financials Comments [₹Crore] 1H/FY24 2 1H/FY23 1 Y-o-Y 2,406 3,115 Revenues : ₹ 2,406 Cr, declined 23% YoY, impacted by particularly strong Revenues -23% CDMO-Synthesis revenues in base year,
Slide 32: About Laurus Labs
About Laurus Labs Founded in 2005, Laurus Labs is a research-driven pharmaceutical and biotechnology company with an aim to improve the quality of life for millions around the world. We have a global leadership position in select Active Pharmaceutical Ingredients (APIs) including anti-retroviral, on