Laurus Labs Ltd. · NSE:LAURUSLABS
Laurus Labs — Q1 FY2024 Earnings Presentation
28 slides from Laurus Labs's earnings presentation, Jul 27, 2023
Slide 1: Cover letter to stock exchanges: Investors/Analysts Presentation
July 27, 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 Dea
Slide 2: Q1 FY 2024 Financial Results and Business Update
Q1 FY 2024 Financial Results and Business Update July 27 , 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: Agenda
Agenda 1 Financial Overview 2 Business Review & Strategy 3 Outlook 3 Laurus Q1 FY 2024 Investor Presentation | July 27, 2023
Slide 5: Advancing operational excellence by signing new multi-year CDMO contract
Advancing operational excellence by signing new Multi year CDMO contract and deepening commitment to emerging CGT technology Diversifies portfolio and enhances our sustainable CDMO growth engine Multi-Year Commercial Contract with 1 Key Milestone and Opportunity to build leadership position in C
Slide 6: Delivering Capex projects to support Long-Term growth
Delivering Capex projects to support Long-Term growth FDF, VTZ CDMO, VTZ^ Expansion of small molecules DP Animal Health capabilities at U2 – by 4 billion unit (LSPL-U2)- Dedicated dev & mfg. facility annually Continuous investment in diversified -Jul’23 inaugurated/qualification under progress -Co
Slide 7: Commercial Capacity Progress
Commercial Capacity Progress Reactor Volumes Drug Product Capacity +2,842 7,480 Reactor Capacity (KL) Oral Solids (billion) 10 +2,768 4,638 +1,650 5 1,870 2 220 FY11-16 FY16-21 FY23 FY06-11 FY11-16 FY16-21 FY23 +500 KL New capacity under construction for FY24 delivery Well Positioned to meet growing
Slide 8: Summary Quarterly Performance
Summary Quarterly Performance Revenues EBITDA & Margins % [₹ Cr] [₹ Cr] 700 38.0% 28.9% 28.2% 27.9% 29.5% 28.5% 33.0% 1,576 600 1,539 1,545 26.1% 28.0% 1,425 1,381 500 20.8% 23.0% 400 454 449 1,203 1,182 398 404 14.2% 18.0% 348 300 13.0% 1,029 200 290 287 8.0% 100 168 3.0% 0 -2.0% 2Q 3Q 4Q 1Q Q2 Q3
Slide 9: Financial Performance 1Q/FY24
Financial Performance 1Q/FY24 Negatively impacted; but underlying demand remains healthy 1Q/FY24 Consolidated Financials Comments [₹Crore] 4Q/FY23 1Q/FY24 1Q/FY23 Y-o-Y Q-o-Q Revenues : ₹ 1,182 Cr, declined 23% YoY, impacted by particularly strong Revenues 1,381 1,182 1,539 -23% -14% CDMO-Synthesi
Slide 10: Business Performance 1Q/FY24
Business Performance 1Q/FY24 Transient impact in Non-ARV API and FDF segment Formulation (FDF): While the underlying demand trend is healthy, Q1 1Q/FY24 Segment Performance reported weak -18% YoY and -27% QoQ; mainly impacted by lower [₹ Crore] 4Q/FY23 1Q/FY24 1Q/FY23 Y-o-Y Q-o-Q offtake in ARV bu
Slide 11: Business review & Strategy
2. Business review & Strategy 10 Laurus Q1 FY 2024 Investor Presentation | July 27, 2023
Slide 12: Generic FDF
Generic FDF ARV weakness temporary; Market dynamics stable Revenue Growth Global Filings 393 [₹ Cr] ROW 45 17 62 349 285 249 Canada 13 7 20 Approved Y-o-Y ▼ 18% Pending 149 Q-o-Q ▼ 27% EU 13 2 15 US 28 10 38 1Q 2Q 3Q 4Q 1Q * Includes 13 Tentative approvals in US FY23 FY23 FY23 FY23 FY24 Q1 mainly
Slide 13: Generic APIs
Generic APIs Transitionary weakness; stabilization visible Revenue Growth API Sales mix 714 [₹ Cr] 8% 680 11% 12% 9% 632 18% 583 597 23% 24% 33% 29% 33% Onco API Y-o-Y ▲ 2% Other API Q-o-Q ▼ 16% 65% 59% 59% 68% ARV API 49% 1Q 2Q 3Q 4Q 1Q 1Q 2Q 3Q 4Q 1Q FY23 FY23 FY23 FY23 FY24 FY23 FY23 FY23 FY23 FY
Slide 14: CDMO - Synthesis
CDMO - Synthesis Strong momentum in Ongoing projects; Signed First multi-year contract in Agro-chemicals YoY 9% 47% 32% 34% 37% 35% 62% 19% 95% 34% 63% 105% 272% 248% 78% [₹ Cr] 720 642 577 Y-o-Y ▼ 57% Q-o-Q ▲ 10% 360 228 250 176 195 207 148 127 155 PO supplies 86 100 116 73 78 1Q 2Q 3Q 4Q 1Q 2Q 3Q
Slide 15: Laurus Bio - Bio business
Laurus Bio - Bio business Growth momentum continues Revenue Growth Comments [₹ Cr] Strong growth continued with +67% YoY growth and sequentially in Q1 with revenues of ₹ 50 cr. 50 46 Driven by growth in CDMO services (AOF proteins, growth factors), expanded customer base and recognition of few d
Slide 16: Transformation over Last 5 Years - Diversified underlying business growth
Transformation over Last 5 Years - Diversified underlying business growth Diversification of Laurus business + 24% CAGR 125 FY 18 FY 23 ₹ 2,056 Cr ₹ 6,041 Cr [₹ Crores] 1972 2% 6,041 402 36% 37% 744 742 ARV 7% 73% 18% 2,056 ARV API (Onco+Others) FDF (ex-ARV) CDMO Bio FY 18 ARV API FDF (ex-ARV) CDMO
Slide 17: Strengthening R&D platform
Strengthening R&D platform Green and Synthetic Biology Technology Focus Successfully demonstrated enzymatic reactions at large scale 6500+ Total talent pool Novel enzymes development and biotransformation tech With over 1/3rd of total workforce into Implementation of Green Catalyst platform an
Slide 18: Manufacturing footprint - Enabling Customers with Integrated capabilities
Manufacturing footprint - Enabling Customers with Integrated capabilities Visakhapatnam Hyderabad Bangalore U1 U3 U5 LSPL U1 Sriam Lab R1 R2 API CDMO API CDMO^ API CDMO API Intermediates Bio-Ingredients Bio-Ingredients 334 R1 296 R & R&D 51 R 42 R + 3 AGR2 31 R 5 Fermenters & R&D 4 Fermenters 1,240
Slide 19: R&D focus – Promising product pipeline
R&D focus – Promising product pipeline US/EU pipeline by Addressable market R&D spent & Filing trend US Filings by Therapy Mix 60 61 73 79 82 DMFs Para IV: 16 500 6% 16% FTFs: 11 $ 40 bn 450 26 27 31 37 38 ANDAs 400 5.7% 3.8% 4.1% 3.5% 4.0% 8% 350 $ 27bn 55% 300 Total Filed Non-ARV 8% 53% 250 202 21
Slide 20: Robust Regulatory and Quality Foundation
Robust Regulatory and Quality Foundation Laurus Philosophy “One Quality Standard for All Markets” No of USFDA Year Last US FDA – Facility Regulatory Certifications audits (since 89 started Inspection status inception) Total Regulatory Audits Kilo Lab – USFDA, TGA, KFDA, PMDA, 2008 2021 – USFDA 4 1,0
Slide 21: Strong commitment to Environment & ESG
Strong commitment to Environment & ESG ESG Focus on UN SDG Priorities Ongoing investments into Green Technology Platforms Biocatalysis Continuous Flow Chemistry Sustainability Sustainability Management across All Sites Technologies Carbon Emission Intensity (FY23 vs. 22 per Revenue): 6%^ Well
Slide 22: Outlook
3. Outlook 21 Laurus Q1 FY 2024 Investor Presentation | July 27, 2023
Slide 23: Growth strategies to drive sustainable growth
Growth strategies to drive sustainable growth Build a bigger CDMO and CMO service business and capitalise on diversification of 1 Outsourcing and Dual souring trend Leveraging Comprehensive capabilities and Technology links to further enhance Co 2 positioning and fully capture cross business synergi
Slide 24: FY 2024: Sales outlook retained
FY 2024 : Sales outlook retained Sales drivers CDMO: Revenue expansion of base pipeline projects and 2H Animal health contract supplies kick-off Generics1: Growth in existing and new CMO contracts (Diabetic & CV portfolio) across key markets, Key product approvals and better visibility in ARV busine
Slide 25: Our Recognitions
Our Recognitions International Safety Awards 2023 from British Safety Council – Unit-1,3 “Best Performance Award in Environmental Management” 2023 from AP PCB – Unit-5 "Best Supplier of the Year 2022" Award from Teva OSH India Award – 2022 under the category Health and Safety Initiatives – U
Slide 26: Corporate Structure and Shareholding Details
Corporate Structure and Shareholding Details Corporate Structure Shareholding Pattern Promoter & Sriam Labs Pvt Ltd Others Promoters Group 45.8% 27.2% Laurus Generics Inc. Laurus Holdings Ltd Laurus Generics GmbH. June 2023 Laurus Generics SA (PTY) Ltd Mutual Funds 5.1% FIIs 21.9% Laurus Labs Limite
Slide 27: Conference Call Details
Conference Call Details Laurus Labs Results Conference Call to be held on Thursday, 27th July 2023 at 5:00 PM IST Dial – In – Details Universal Dial-In +91 22 6280 1342 Click below to Express Join with India Local access Number +91 22 7115 8243 Diamond Pass Singapore 800 101 2045 Click here to regis
Slide 28: 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