Eris Lifesciences Ltd · NSE:ERIS
Eris Lifesciences — Q3 FY24 Earnings Presentation
25 slides from Eris Lifesciences's earnings presentation, Feb 13, 2024
Slide 1: Investor presentation filing letter to stock exchanges
Date: 13 February 2024 To To BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers Exchange Plaza Dalal Street Bandra Kurla Complex Mumbai- 400001 Bandra (E) Mumbai-400051 Security Code: 540596 Symbol: ERIS SUBJECT: INVESTOR PRESENTATION Dear Sir/Madam, Pursuant to the requi
Slide 2: Q3 FY 24 and 9M FY 24
Q3 FY 24 and 9M FY 24 13th Feb 2024 1
Slide 3: Our journey since listing – growth in market rank from #29 to #21
OUR JOURNEY SINCE LISTING – GROWTH IN MARKET RANK FROM #29 to #21 From FY 17 to FY 23 FY 17 FY 23 Sources of Capital Capital Deployment • Market Rank #29 • Operating Cashflow ~ • Invested in inorganic growth ~ • Market Rank #21 INR 2,100 cr. INR 1,860 cr. • Covered Market • Covered Market ~ INR 34,0
Slide 4: Emerging therapies now account for ~30% of revenue
EMERGING THERAPIES NOW ACCOUNT FOR ~ 30% OF REVENUE Therapy-wise composition of revenue – MAT Dec’21 Therapy-wise composition of revenue – MAT Dec’23 100% = INR 1,692 crore 100% = INR 2,480 crore Rest Rest NEPHRO WHC 10% WHC 8% Diabetes 3% 28% Diabetes CNS 6% 5% 31% CNS 6% 8% DERMA 14% 20% 19% VMN 1
Slide 5: Clear cut value-creation through dermatology acquisitions
CLEAR CUT VALUE-CREATION THROUGH DERMATOLOGY ACQUISITIONS Revenue (INR Cr.) • Deployed INR 1,265 cr. across 3 deals in FY23, primarily to build up our Dermatology franchise We are • FY24 expected Revenue ~ INR 375 cr. and EBIDTA ~ INR 130 cr. starting to • Significant value creation in less than a y
Slide 6: Expect strong cash generation and significant growth ahead
EXPECT STRONG CASH GENERATION AND SIGNIFICANT GROWTH AHEAD Vision 2029 • Projected Operating Cashflow during FY24 - FY26 = Rs. 1,800+ crore Revenue INR 5,000 • Projected Operating Cashflow crore during FY24 – FY29 ~ Rs. 6,000+ crore 5
Slide 7: Acquisition of Swiss Parenterals – a segue into sterile injectables
ACQUISITION OF SWISS PARENTERALS – A SEGUE INTO STERILE INJECTABLES • Dossier-Driven Business in • Generic and Specialty Injectables • Focused on RoW Markets 6
Slide 8: Swiss Parenterals – strategic attractiveness to Eris
SWISS PARENTERALS – STRATEGIC ATTRACTIVENESS TO ERIS Sterile Injectable Swiss derives ~ 100% of its business from the export of Sterile Injectables (SVPs) Exports to RoW to 80+ RoW markets in Africa, Asia-Pac, Middle East & LatAm Platform for an India With a strong product portfolio and manufacturin
Slide 9: Eris and Swiss Parenterals – new growth opportunities ahead
ERIS AND SWISS PARENTERALS – NEW GROWTH OPPORTUNTIES AHEAD Oral Solid Dosages (“OSD”) Small Volume Parenterals (“SVP”) New Addressable Market • Eris – strong platform as a Will leverage (i) Eris platform Sterile injectables in leading domestic pharmaco and (ii) Swiss product range to India is a USD
Slide 10: Swiss Parenterals manufacturing footprint
SWISS PARENTERALS MANUFACTURING FOOTPRINT Unit I Unit II • Widest range of dosage forms manufactured in small volume parenterals • Significant installed capacity available – e.g., 100 mn p.a. general vials/ ampoules and 60 mn p.a. for Cephs/ Pens; • Liquid Vials & Ampoules • Dedicated blocks for pre
Slide 11: Swiss Parenterals – R&D, regulatory and intellectual property
SWISS PARENTERALS – R&D, REGULATORY AND INTELLECTUAL PROPERTY R&D Capabilities • R&D Lab of ~ 2,300 sft. including Formulation Development, Analytical Development and Pilot Plant with state-of-the-art equipment and instrumentation • Team of 15 R&D professionals with significant experience in sterile
Slide 12: Eris oral solids manufacturing – will leverage to jump-start exports
ERIS ORAL SOLIDS MANUFACTURING – WILL LEVERAGE TO JUMP-START EXPORTS Guwahati Unit Ahmedabad Unit We propose to secure PIC/s approvals for these facilities and jump- start RoW exports • Tablets – 1,440 mn p.a. • Tablets – 2,160 mn p.a. by leveraging • Capsules – 150 mn p.a. • Capsules – 240 mn p.a.
Slide 13: Swiss Parenterals – deal contours
SWISS PARENTERALS – DEAL CONTOURS • Swiss Parenterals has been valued at INR 1,250 crore, which implies a 11-12x EBIDTA multiple of FY24E • Eris has signed a definitive agreement for acquisition of 51% equity stake in Swiss Parenterals Ltd. (SPL) for a consideration of INR 637.50 crore • INR 200 cro
Slide 14: Eris ranked among the top-10 fastest growing companies – Dec MAT'23
ERIS RANKED AMONG THE TOP-10 FASTEST GROWING COMPANIES – DEC MAT’23 Eris has outperformed the IPM by 600 bps 15.8 in MAT Dec’23 12.8 12.1 11.2 11.1 10.8 10.4 10.4 9.6 9.3 6.8 IPM LA RENON ERIS LS MACLEODS ARISTO MANKIND TORRENT USV CIPLA FDC ABBOTT Source: AWACS Pharmatrac data for the period MAT DE
Slide 15: Eris - market leading growth in core as well as emerging therapies
ERIS - MARKET LEADING GROWTH IN CORE AS WELL AS EMERGING THERAPIES Core Therapies – 63% of Revenue Emerging Therapies – 29% of Revenue Diabetes, Cardiovascular and VMN Dermatology, CNS, Women’s Health & Nephrology Growth in Per Cent (MAT Dec ‘23) Growth in Per Cent (MAT Dec ‘23) 7% 27.8% 4% 6.7% Mar
Slide 16: Strategic priorities for FY24 – an update at the end of Q3 FY24
STRATEGIC PRIORITIES FOR FY24 – AN UPDATE AT THE END OF Q3 FY24 Priority articulated at the start of the year Update at the end of Q3 FY24 1 • Successful commercialization of our • First FDCs from own R&D pipeline – Sitagliptin+Gliclazide and New Product Pipeline Dapagliflozin-Gliclazide - launched
Slide 17: Two R&D products approved for launch; pipeline expanded to 26 candidates
TWO R&D PRODUCTS APPROVED FOR LAUNCH; PIPELINE EXPANDED TO 26 CANDIDATES Candidates/ Therapy Development Status Commercialisation 2 FDCs in Oral Anti-diabetes Approved by DCGI Q3 of FY24 2 FDCs in Cardiovascular Disease Clinical Trials Q1 of FY25 Launched in Q3: 4 FDCs in Diabetes Disease Clinical T
Slide 18: Three more mother brands gearing up to join our 100 crore club soon
THREE MORE MOTHER BRANDS GEARING UP TO JOIN OUR 100 CRORE CLUB SOON EXISTING 100 CR. CLUB WILL ENTER THE 100 CR. CLUB SOON… Driven by successful new introductions Rs. 299 cr. and line extensions, Tayo, Gluxit and Remylin Demonstrate significant growth * Rs. 171 cr. Rs. 66 cr to Rs. 80 cr (Q3 growth
Slide 19: Branded formulations business highlights – Q3 and 9M FY24
BRANDED FORMULATIONS BUSINESS HIGHLIGHTS – Q3 AND 9M FY24 FY23 FY24 Branded Formulations Revenue Branded Formulations YPM Branded Formulation Highlights - H1 FY24 INR Mn INR lakh p.m. 16% • 16% revenue growth in Branded 13% 13% 12,177 14,177 Formulations - 97% of total revenue - 4.7 4.7 16% includes
Slide 20: Consolidated income statement – Q3 and 9M FY24
CONSOLIDATED INCOME STATEMENT – Q3 AND 9M FY24 Consolidated Q3 FY 24 9M FY 24 INR Millions Q3 FY 24 Q3 FY 23 9M FY 24 9M FY 23 yoy Gr % yoy Gr % Sale of Products 4,835 4,178 15.7% 14,440 12,652 14.1% • Q3 FY24 operating revenue up by 15% to INR Other Operating Income Revenue from Operations 28 4,863
Slide 21: Key growth drivers for FY24 – FY26
KEY GROWTH DRIVERS FOR FY 24 – FY 26 1 Growth in Base Business • Our Top-20 power brands account for 66% of our revenues and have grown at 9% in MAT Dec’23 14 out of these brands are ranked among the Top-5 in their respective segments. We have • 4 brands with revenues of Rs. 100+ crore each • 5 bran
Slide 22: Key growth drivers for FY24 – FY26 (Contd..)
KEY GROWTH DRIVERS FOR FY 24 – FY 26 (Contd..) 3 Expansion of physician We continue to make good progress in expanding our coverage of Specialists and Consulting coverage Physicians in line with our expectations 4 Therapeutic Diversification • Core Therapies (Diabetes, CVD & VMN) contribution reduce
Slide 23: Shareholder profile
SHAREHOLDER PROFILE Shareholding of Promoters and Top 15 Institutional Investors As on As on As on Others Name of Shareholder 31-Dec-23 30-Sep-23 30-Jun-23 1.74% FPIs 910* 876* *699 13.14% Promoters 54.90% 54.91% 52.86% 1 Chrys Capital (Emerald Investment Limited) 7.58% 7.58% 7.58% 2 HDFC Mutual Fun
Slide 24: 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 the underlying assumptions
Slide 25: Thank you
THANK YOU KRUTI RAVAL INVESTOR RELATIONS kruti@erislifesciences.com 24