Gland Pharma Ltd. · NSE:GLAND
Gland Pharma — Q4 FY21 Earnings Presentation
36 slides from Gland Pharma's earnings presentation, May 17, 2021
Slide 1: Financial Results Q4'FY21 & FY21
Gland Pharma Limited Financial Results Q4’FY21 & FY21 17th May 2021
Slide 2: Safe Harbor Statement
Safe Harbor Statement The Presentation is to provide the general background information about the Company’s activities as at the date of the Presentation. The information contained herein is for general information purposes only and based on estimates and should not be considered as a recommendation
Slide 3: Financial Highlights (1/3)
Financial Highlights (1/3) Sustainable growth with optimal investments for the future Revenue from Operations EBITDA (1) / EBITDA Margin (2) (INR Mn) (INR Mn / %) 34,629 3,749 8,877 14,370 26,332 2,861 10,946 6,352 42% 40% 39% 40% Q4 FY20 Q4 FY21 FY20 FY21 Q4 FY20 Q4 FY21 FY20 FY21 PBT / PAT / PAT M
Slide 4: Financial Highlights (2/3)
Financial Highlights (2/3) Balance sheet strength to support future growth Net Worth (1) Cash and Bank Balances / Net Cash (2) (INR Mn) (INR Mn) 59,032 12,250 30,058 30,017 36,462 46,782 13,252 13,202 Mar'20 Mar'21 Mar'20 Mar'21 Networth Fresh issue of equity Total Cash Net Cash Net Working Capital
Slide 5: Financial Highlights (3/3)
Financial Highlights (3/3) Focus on Capital efficiency and healthy return ratios Asset Turnover Ratio (1)(2) ROCE (3) / RONW (4) (%) 2.8 2.4 33% 32% 21% 17% 0.7 21% 0.6 17% Total asset turnover Fixed asset turnover Mar'20 Mar'21 Mar'20 Mar'21 RoCE (Ex-Cash) RoCE RoNW Cash Flow from Operations Cash C
Slide 6: P&L Highlights
P&L Highlights YoY YoY Amount in INR Q4 FY21 Q4 FY20 FY21 FY20 Q3 FY21 growth growth Revenue From operations 8,877 6,352 40% 34,629 26,332 32% 8,594 Other Income 473 462 2% 1,348 1,392 -3% 351 Total income 9,350 6,814 37% 35,977 27,724 30% 8,945 Gross Margin(1) 4,962 3,797 31% 19,710 15,312 29% 4,52
Slide 7: USA, Europe, Canada and Australia (Core Markets)
USA, Europe, Canada and Australia (Core Markets) Revenue: FY21: Rs. 23,610 Mn Q4 FY21: Rs. 6,193 Mn YoY Growth: 22% YoY Growth: 29% Continuing on our strategy to strengthen product portfolio, we launched key products like Micafungin, Bivalirudin and Ziprasidone in core markets which has helped mai
Slide 8: Rest of the World Markets
Rest of the World Markets Rest of the world markets sales has been driven by new FY21: Rs. 5,455 Mn Q4 FY21: Rs. 1,436 Mn YoY Growth: 136% YoY Growth: 196% partnerships and increased penetration geographically We are seeing repeat demand from new partnerships Rest of the World Markets entered in
Slide 9: Domestic Market
Domestic Market Domestic market sales remain steady and have shown FY21: Rs. 5,564 Mn Q4 FY21: Rs. 1,248 Mn YoY Growth: 19% YoY Growth: 15% 19% growth in FY21 The new capacities being made available for the Domestic Indian Market domestic market has helped ramp up volume growth in the core portf
Slide 10: Near Term Focus Areas
Near Term Focus Areas Focus on achieving a diverse product mix offering products at various stages of their lifecycle as well as a robust product pipeline Operational integration of biologics facility into Gland and additional capability building on vaccine drug substance manufacturing. We also lo
Slide 11: Responding to COVID-19
Responding to COVID-19 • Put in adequate safeguards to ensure health and safety of employees and their family by taking precautionary measures; social distancing, workplace fumigation and sanitization across all plants Safety First • Efficient production planning, resource allocation through regulat
Slide 12: Investor Presentation
GLAND PHARMA LIMITED Investor Presentation
Slide 13: Snapshot
Snapshot 7 Manufacturing Extensive and Vertically Integrated Greater Control Over Facilities – Manufacturing Processes Injectables Manufacturing Capabilities 4 Finished Formulation and 3 API No Warning Letters 284 ANDA Filings in Consistent Compliance Track Record with from USFDA Since the US (1) (2
Slide 14: Journey
Journey Received ANDA approval for Enoxaparin Sodium Injection USP Received ANDA approval for first Ophthalmic product Launched Heparin BGV Hamburg USFDA and EU USFDA approval for facilities First OTC launch in Launch of Enoxaparin Sodium Sodium Injection (Germany) approval for at Visakhapatnam, US
Slide 15: Business Overview: 7 Facilities
Business Overview Extensive and Vertically Integrated Manufacturing Capabilities With Consistent Compliance Track Record 4 Finished 3 API Facilities 7 Facilities Formulation Facilities & 11,000 kg / year and 3 API facilities provide in-house manufacturing capabilities for 767 million units R&D Pilot
Slide 16: Business Overview (Cont'd)
Business Overview (Cont’d) Diversified B2B-led Model Across Markets Complemented by B2C Model in India • Operating in 60+ countries as of March 31, 2021 • One of the fastest growing generic injectables-focused companies by revenue in the US from 2014 to 2019 (1) • Successful track record of operatin
Slide 17: Business Overview (Cont'd)
Business Overview (Cont’d) Extensive Portfolio of Complex Products Internal R&D & Regulatory Capabilities Present in sterile injectables, oncology and ophthalmics, and focus Centralized R&D Laboratory located at Dundigal, Hyderabad on complex injectables, NCE-1s, First-to-File products and facility,
Slide 18: Key Strengths
Key Strengths 6 1 Experienced and Qualified Injectables: One of the Fastest Management Team Growing and Largest Segment 5 2 Track Record of Growth and Extensive and Vertically Profitability from a Diversified Integrated Injectables Revenue Base with Healthy Manufacturing Capabilities (1) Cash Flows
Slide 19: Injectables: One of the Largest and Fastest Growing Segment
Injectables: One of the Largest and Fastest Growing Segment Injectable formulations is the fastest growing segment in global pharmaceuticals, recording a 2014-2019 CAGR of 1 10.1% vs overall pharma market at 5.8% Growth Global generic injectables market is estimated at c.US$131bn growing at a 20
Slide 20: Generic Injectables: Growth Opportunity
Generic Injectables: Growth Opportunity US$131bn Market with Multiple Growth Levers Driven by LoEs, Opportunity from Shortages and Ease of Use Sizeable Injectable Market … … Growing Faster than Broader Market … with Robust Growth in Generics Injectable recorded CAGR of 10.1% vs broader Key injectabl
Slide 21: Generic Injectables: Growth Drivers
Generic Injectables: Growth Drivers Injectables Segment has Demonstrated the Fastest Growth among Delivery Formats Increase in the prevalence of Convenience and benefits of New diabetes and other chronic 1 2 Drug Delivery Systems diseases where treatment is primarily (“NDDS”) like auto injectors, pr
Slide 22: Generic Injectables: Market Entry Barriers
Generic Injectables: Market Entry Barriers Manufacturing Complexities to Meet High Level of Compliance and Stringent Quality Standards Regulatory Requirements Complexities involving sterilisation, packaging, High level of regulatory enforcement of cGMP sterile fill/finish, with stability assessment
Slide 23: Extensive & Vertically Integrated Manufacturing Capabilities
Extensive & Vertically Integrated Manufacturing Capabilities Overview Manufacturing Footprint 7 Facilities Dundigal, Hyderabad Sterile Injectables Facility (Flagship) USFDA (US), MHRA (UK), • Liquid Vials, Lyophilizers, Ampoules, ANVISA 4 3 Pre-filled syringes, Bags and (Brazil), TGA Ophthalmics (Au
Slide 24: Consistent Regulatory Compliance Track Record
Consistent Regulatory Compliance Track Record Highlights No warning letters All facilities Certified WHO GMP 3 ISO certifications as from USFDA (whether GMP compliant by certifications from the of March 31, 2021 (1) as a result of facility USFDA, and certain Drugs Control inspection or otherwise) fa
Slide 25: Diversified Business Model with Focus on Growth & Stability
Diversified Business Model with Focus on Growth & Stability Diversified B2B-led Model Across Markets, Complemented by a Targeted B2C Model in India B2B (c.96% of FY21 Revenue) B2C (c.4% of FY21 Revenue) B2B – IP Led B2B Tech Transfer B2B CMO B2C Own Filing Partner Filing • Out-license to marketing p
Slide 26: Gland's B2B Model: Salient Features
Gland’s B2B Model: Salient Features Advantages Include Stable Cash Flows, Better Profitability Profile, Margin Stability from Natural Hedge Against Raw Material Pricing and End-formulation Pricing Fluctuations Steady / Predictable Cash Flow Long-term supply contracts with marketing partners rangin
Slide 27: Complex Product Portfolio Supported by Strong R&D
Complex Product Portfolio Supported by Strong R&D… Right Capability Matrix in Products and Delivery Systems Expertise in Present in: Focused on: Expanding Expanding in new Key products synthesis of Oncology capabilities in: delivery systems: include: Complex complex drug Ophthalmics and inject
Slide 28: Supported by Proven Regulatory Capabilities
…Supported by Proven Regulatory Capabilities Product Development Capabilities Supported by Regulatory Expertise and Track Record in Filing and Approval of Large Number of Product Registrations Established Expertise Successful track record and pipeline Geographic Breakdown (FY21) Broad Range of Filin
Slide 29: Focus on Lifecycle Management of Products
Focus on Lifecycle Management of Products Focus on Lifecycle Management of Products Across Manufacturing, R&D and Supply Chain Processes to Maintain Competitive Advantage Over Peers Vertical Integration as Differentiator Operational Efficiencies Ability to vertically integrate and manufacture Ab
Slide 30: Corporate Governance Framework Based on Independent Board
Corporate Governance Framework Based on Independent Board Name Profile Board of Directors Yiu Kwan Stanley Lau • Bachelor’s degree in pharmacy from The School of Pharmacy, University of London Chairman and Independent Director • Director on the board of Solasia Pharma K. K. and TaiLai Bioscience Ltd
Slide 31: Professional and Experienced Management Team
Professional and Experienced Management Team Name Qualification Management Team Srinivas Sadu • Master’s degree in science (pharmaceutics) from Long Island University, New York Managing Director and Chief Executive • Master’s degree in business administration from University of Baltimore; Officer •
Slide 32: Promoted by Shanghai Fosun Pharma
Promoted by Shanghai Fosun Pharma Shanghai Fosun Pharma is Global Pharmaceutical Major with Extensive Pharmaceutical Manufacturing, Distribution and R&D Expertise Globally ● Fosun Pharma is a Global pharmaceutical major, whose shares are listed on the Shanghai Stock Exchange and the Stock Exchange o
Slide 33: Building Blocks to Implement Future Strategy
Building Blocks to Implement Future Strategy Continued Focus on Cost Management Pursue Strategic Acquisitions and Align with 6 Partnerships Shanghai Fosun Pharma to Increase Market 5 Increase Current Share Continue to Market Presence Invest in and Enter New 4 Manufacturing Markets and Technological
Slide 34: Proven Track Record of Financial Performance
Proven Track Record of Financial Performance Growth and Profitability from a Diversified Revenue Base Revenue from Operations EBITDA (1) / EBITDA Margin (2) (INR Mn) (INR Mn / %) 34,629 40% 40% 26,332 37% 14,370 20,442 35% 10,946 16,229 7921 5841 FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 Increase in E
Slide 35: Proven Track Record of Financial Performance (Cont'd)
Proven Track Record of Financial Performance (Cont’d) Strives to be a Capital Efficient Business. Company has no Significant Borrowings Net Worth (1) Cash and Bank Balances / Net Cash (2) (INR Mn) (INR Mn) 35% CAGR 30,058 30,017 59,032 36,462 13,252 13,202 28,620 6,708 6,649 7,533 7,479 24,104 FY18
Slide 36: Registered Office
Registered Office Gland Pharma Limited Survey No. 143-148, 150 & 151 Near Gandimaisamma 'X' Roads D.P. Pally, Dundigal Gandimaisamma Mandal Medchal-Malkajgiri District Hyderabad 500043, Telangana, India 543245 GLAND GLAND:IN 36