Cohance Lifesciences Ltd · NSE:COHANCE

Cohance Lifesciences — Suven Pharmaceuticals — Q3 FY25 Earnings Presentation

50 slides from Cohance Lifesciences's earnings presentation, Feb 12, 2025

  1. Slide 1: Suven Pharmaceuticals Ltd. Investor Presentation Q3 and 9MFY25

    Suven Pharmaceuticals Ltd. …Going Above and Beyond Investor Presentation Q3 and 9MFY25

  2. Slide 2: Safe Harbour

    Except for historical information, all of the statements, expectations and assumptions, including expectations and assumptions, contained in this presentation may be forward-looking statements that involve a number of risks and uncertainties. Although Suven attempts to be accurate in making these Sa

  3. Slide 3: Table of Contents

    Table of Contents Q3 and 9MFY25 Proforma Operating and Financial 04 Performance Combined Business: Proforma Metrics 13 Combined Business: Key segment wise strategy 16 Update on Amalgamation of Suven Pharmaceuticals 29 with Cohance Lifesciences ESG 31 Financial Performance Q3 and 9MFY25 33 Annexure 4

  4. Slide 4: Q3 and 9MFY25 Proforma Operating and Financial Performance

    Q3* and 9MFY25* Proforma Operating and Financial Performance *Proforma basis subject to the proposed amalgamation of Cohance Lifesciences

  5. Slide 5: Executive Summary

    Executive Summary Strategic Vision and Key Updates • Suven, a technology-driven CDMO with a global footprint, is well-positioned to emerge as a global leader from India, leveraging structural tailwinds: advancing technological capabilities, China+1, EU+1, and the BioSecure Act. • Targeting $1bn in r

  6. Slide 6: Proforma Merged Earnings - Pharma CDMO drives growth

    Proforma Merged Earnings - Pharma CDMO drives growth Proforma Suven + Cohance - Q3FY25 Performance: Q3FY25 Consolidated Financial Highlights  Combined platform reported revenue growth of 40% YoY driven by Pharma CDMO. 40%# 56%# 101%#  The Pharma CDMO business grew by 101% YoY to Rs 2.9bn Revenue f

  7. Slide 7: Q3FY25 Proforma Consolidated Financial results – Adjusted EBITDA margins at 39%

    Q3FY25 Proforma Consolidated Financial results – Adjusted EBITDA margins at 39% Suven + Cohance* Consolidated Financials INR Million Particulars Q3FY24 Q3FY25 YoY • Q3FY25 reported 40% YoY growth supported by Pharma CDMO and API+ revenue growth. Revenue from Operations 4,846 6,764 39.6% Material cos

  8. Slide 8: 9MFY25 Proforma Consolidated Financial results

    9MFY25 Proforma Consolidated Financial results Suven + Cohance Consolidated Financials INR Million Particulars 9MFY24 9MFY25 YoY • Gross margins expanded by 365 bps to 70.2%. Revenue from Operations 16,903 17,691 4.7% • Adjusted EBITDA margins stood at 34.8% with Material costs / COGS (5,667) (5,279

  9. Slide 9: Q3FY25 Proforma Business performance overview combined platform

    Q3FY25 Proforma Business performance overview combined platform Suven + Cohance Consolidated Financials Operational Revenue (INR Million) Adjusted EBITDA (INR Million) Margin (%) Adjusted PAT (INR Million) Margin (%) 6,764 38.7% 24.8% 29.1% 4,846 17.3% 1,412 2,620 838 1681 Q3FY24 Q3FY25 Q3FY24 Q3FY2

  10. Slide 10: 9MFY25 Proforma Business performance overview combined platform

    9MFY25 Proforma Business performance overview combined platform Suven + Cohance Consolidated Financials Operational Revenue (INR Million) Adjusted EBITDA (INR Million) Margin (%) Adjusted PAT (INR Million) Margin (%) 16,903 17,691 35.4% 34.8% 23.8% 22.5% 5,979 6,149 4,019 3,978 9MFY24 9MFY25 9MFY24

  11. Slide 11: Q3FY25 Suven Pharma - Business performance overview

    Q3FY25 Suven Pharma - Business performance overview Consolidated Financials Operational Revenue (INR Million) Adjusted EBITDA (INR Million) Margin (%) Adjusted PAT (INR Million) Margin (%) 3,072 44.9% 31.1% 36.8% 25.8% 2,198 810 1,380 568 955 Q3FY24 Q3FY25 Q3FY24 Q3FY25 Q3FY24 Q3FY25 Pharma CDMO (IN

  12. Slide 12: 9MFY25 Suven Pharma - Business performance overview

    9MFY25 Suven Pharma - Business performance overview Consolidated Financials Operational Revenue (INR Million) Adjusted EBITDA (INR Million) Margin (%) Adjusted PAT (INR Million) Margin (%)  (0.4)% 7,984 7,956 44.2% 32.2% 31.0% 42.4% 3,525 3,372 2,569 2,465 9MFY24 9MFY25 9MFY24 9MFY25 9MFY24 9MFY25

  13. Slide 13: Combined Business: Proforma Metrics

    Combined Business: Proforma Metrics

  14. Slide 14: Proforma Merged Entity

    Proforma Merged Entity 9MFY25 Merged Company INR Mn Revenue 7,956 9,735 17,691 Adjusted EBITDA 3,372 2,777 6,141 Adjusted EBITDA margin % 42.4% 28.5% 34.8% Adjusted PAT 2,465 1,513 3,978 Adjusted PAT margin % 31.0% 15.5% 22.5% RoCE 24.9% 26.8% 25.8% RoE 13.4% 23.0% 13.4% (Net Debt) / Net Cash to Adj

  15. Slide 15: Proforma Merged Entity - Combined business mix

    Proforma Merged Entity - Combined business mix 9MFY25 Merged Company Formulations & Others 20% Sales Mix CDMO (9MFY25) API++ CDMO 30% API++ CDMO 70% 48% 52% 80% Manufacturing Facilities (Regulatory 6 (2) 8 (5) 14 (7) approved) R&D Centers 3 4 7 Capacity ~1,400 kL ~1,250 kL ~2,650 kL Source: Cohance

  16. Slide 16: Combined Business: Key segment wise strategy

    Combined Business: Key segment wise strategy

  17. Slide 17: Our Growth Engines – Pharma CDMO key driver

    Our Growth Engines – Pharma CDMO key driver Small Molecules, ADCs, Oligonucleotides and Peptides constitute ~52% of New Drug Additions to the Global Preclinical and Clinical Pipeline in 20241 Pharma CDMO • Strategic Business Unit to focus on growth 53%# of Sales Specialty acceleration by adding new

  18. Slide 18: Pharma CDMO – Small molecules

    Pharma CDMO – Small molecules  Phase III pipeline moving with higher conversions o Active pipeline of 100+ projects spanning Phase I to Phase III. Phase III pipeline o We have 16 commercial Pharma molecules across combined platform Phase III molecules Phase III intermediate  Phase III pipeline 15

  19. Slide 19: Favorable Industry Macros leading to growth in Small Molecule Pipeline

    Favorable Industry Macros leading to growth in Small Molecule Pipeline Small Molecule Pipeline continues to grow on the back of Oncology contributes more than >50% Active Clinical Pipeline by Year 25,000 • The active clinical trial pipeline keeps growing and has reached 22,936 active drugs. 20,000 •

  20. Slide 20: Small molecules: Increasing proportion of US FDA approvals

    Small molecules: Increasing proportion of US FDA approvals US FDA Approvals lean towards small molecules US FDA Approvals Trend Record Number of Approvals in 2024: 50 novel drugs were 70 100% approved in 2024. 59 90% 60 55 Other notable statistics include: 53 80% 50 48 50 50 • Cancer remains the dom

  21. Slide 21: Suven is present in the fast growing tech platforms of ADCs & Oligos

    Suven is present in the fast growing tech platforms of ADCs & Oligos CDMO Market by Technology – Market Size and Projected Growth (2023-29) 40.00% Suven High-Growth Technology Platforms 35.00% Protein Degraders (~$100 Mn) 30.00% ADC Cell and Gene Therapy ($2.7 Bn) Expected Market Growth (2023-29) Ol

  22. Slide 22: Significant R&D investments in ADC and Oligos/mRNA in the clinical pipeline

    Significant R&D investments in ADC and Oligos/mRNA in the clinical pipeline Global Clinical Active Pipeline R&D pipeline growth (CAGR) 2019-24 25,000 Peptides 2% Nucleic Acids (Oligos/mRNA) 19% 20,000 Antibody-Drug Conjugates (ADC) 20% Vaccines and Viral Vectors 8% 15,000 Cell and Gene Therapy 12% B

  23. Slide 23: Suven uniquely placed to achieve leadership position in the fast-growing ADC/XDC segment

    Suven uniquely placed to achieve leadership position in the fast-growing ADC/XDC segment Expanded ADC offerings to become an integrated End to End CRDMO post acquisition of NJ Bio Our unique capabilities in ADCs and XDCs ADC/ XDC CDMO market to grow ~3x in next 5 years Total ADC/XDC outsourcing Mark

  24. Slide 24: Oligonucleotides is the emerging modality

    Oligonucleotides is the emerging modality with fast growing and immense opportunity for higher market share gain Amongst the few CDMOs globally, supplying complex building blocks for Oligonucleotides Our Niche in Oligonucleotide segment Oligonucleotides market to grow at 25%+ CAGR Market Size ($ bn)

  25. Slide 25: Acquisition of NJ Bio gives Suven End to end ADC/XDC capabilities

    Acquisition of NJ Bio gives Suven End to end ADC/XDC capabilities; makes Suven Platform a major ADC player Business and service offerings Revenue Growth ADC Manufacturing Process • End-to-end ADC chemistry capabilities (P-L1 synthesis, bioconjugation, Trajectory2 (US$mn) bioanalytical services). Als

  26. Slide 26: Expansion of ADC - CDMO Market share for Suven+Cohance platform via NJ Bio

    Expansion of ADC - CDMO Market share for Suven+Cohance platform via NJ Bio Suven’s Addressable Market expands 7x (US$200mn to US$1.4bn), post-acquisition. Suven Platform and NJ Bio’s relevant addressable market is slated to grow from US$1.4bn to US$4bn (23%+ CAGR) Addressable market size(US$1.36Bn)

  27. Slide 27: API+ delivers double digit growth in 9M

    API+ delivers double digit growth in 9M API+ reported 17% YoY growth in 9M with healthy order book $101+ Bn Total Addressable Market What will accelerate the base growth: Sustained growth  Portfolio is unique and can drive sustained growth o Business model focus is on small-mid volume APIs. These M

  28. Slide 28: Specialty Chemical recovering as envisaged

    Specialty Chemical recovering as envisaged Ag-chem:  As indicated, we have seen strong sequential recovery in this business segment. Our concerted BD efforts and early benefits of SBU strategic focus yielding results.  We’re seeing new product discussions and fresh RFQs including from potential ne

  29. Slide 29: Update on Amalgamation of Suven Pharmaceuticals with Cohance Lifesciences

    Update on Amalgamation of Suven Pharmaceuticals with Cohance Lifesciences

  30. Slide 30: Suven Pharma – Cohance Merger – Approval update

    Suven Pharma – Cohance Merger – Approval update  Received shareholders’ approval, with 99.99% votes in favour  Final hearing at NCLT scheduled for February 18  Merger expected to be effective in Q1FY26 subject to regulatory approvals including DoP. Pg. 30

  31. Slide 31: ESG

    - SUVEN PHARMA

  32. Slide 32: ESG Aspirations

    ESG Aspirations We have set multi-dimensional ESG goals for the next 5 years Our achievement EHS Social Governance To be achieved ISO 45001:2018 Reduce absolute Occupational Health Employees undergo Gold in Eco Vadis Scope 1+2 Ethical non- and Safety 35% emissions from co2 100% Health and Safety ZER

  33. Slide 33: Financial Performance Q3 & 9MFY25

    Financial Performance Q3 & 9MFY25

  34. Slide 34: Proforma P&L Suven + Cohance Combined – Snapshot

    Proforma P&L Suven + Cohance Combined – Snapshot INR million CAGR YoY Combined Proforma P&L Snapshot FY20 FY21 FY22 FY23 FY24 Q3FY24 Q3FY25 9MFY24 9MFY25 FY20-FY24 Q3 9M Revenue 16,969 20,140 26,004 26,779 23,922 4,846 6,764 16,903 17,691 9.0% 39.6% 4.7%  Q3 Revenue grew by 40% COGS (5,997) (7,024)

  35. Slide 35: Proforma BS Suven + Cohance Combined– Snapshot

    Proforma BS Suven + Cohance Combined– Snapshot INR million Combined Balance Sheet Snapshot1 FY20 FY21 FY22 FY23 FY24 9MFY24 9MFY25 Property, plant and equipment (PPE) 7,354 8,499 9,396 10,059 10,273 10,169 15,527 2  The combined balance sheet Right of use asset (RoU) 22 105 193 372 762 732 2,401 re

  36. Slide 36: Suven + Cohance Combined Ratios

    Suven + Cohance Combined Ratios Key Ratios# FY20 FY21 FY22 FY23 FY24 9MFY24 9MFY25 Basis Net Working Capital (as days of sales) 128 113 132 125 153 139 142 NWC / Revenue * 365 days PPE (as % of sales) 43.3% 42.2% 36.1% 37.6% 42.9% 41.3% 62.8% PPE / Revenue Capex spend during the year (INR M) 1,527 1

  37. Slide 37: Suven P&L – 9M Adjusted EBITDA margins at 42%

    Suven P&L – 9M Adjusted EBITDA margins at 42% INR million CAGR YoY Consolidated P&L Snapshot FY20 FY21 FY22 FY23 FY24 Q3FY24 Q3FY25 9MFY24 9MFY25 FY20-FY24 Q3 9M Revenue 8,338 10,097 13,202 13,403 10,514 2,198 3,072 7,984 7,956 6.0% 39.7% -0.4% COGS (2,292) (3,019) (3,991) (4,091) (3,150) (724) (556

  38. Slide 38: Suven Balance Sheet – Healthy cash rich B/S

    Suven Balance Sheet – Healthy cash rich B/S INR million Consolidated Balance Sheet Snapshot FY20 FY21 FY22 FY23 FY24 9MFY24 9MFY25 Property, plant and equipment (PPE) 3,531 4,371 5,306 5,842 5,672 5,611 8,390 Right of use asset (RoU) 9 17 14 169 406 403 2,111 Capital work-in-progress 1,016 961 300 1

  39. Slide 39: Suven – Key Ratios

    Suven – Key Ratios Key Ratios FY20 FY21 FY22 FY23 FY24 9MFY24 9MFY25 Basis Net Working Capital (as days of sales) 97 80 114 96 112 106 138 Core NWC / Revenue * 365 PPE (as % of sales) 42.3% 43.3% 40.2% 43.6% 54.0% 48.1% 80.0% Closing PPE / Revenue Capex spend during the year (INR M) 1,029 1,108 752

  40. Slide 40: Cohance Proforma P&L – Snapshot

    Cohance Proforma P&L – Snapshot INR million YoY CAGR Proforma P&L Snapshot FY19 FY20 FY21 FY22 FY23 FY24 Q3FY24 Q3FY25 9MFY24 9MFY25 Q3 9M FY19-FY24  As guided earlier, H2 Revenue 7,272 8,631 10,043 12,802 13,375 13,408 2,648 3,692 8,919 9,735 13.0% 39.4% 9.1% FY25 was expected to be COGS (2,900) (

  41. Slide 41: Cohance Proforma Balance Sheet – Snapshot

    Cohance Proforma Balance Sheet – Snapshot INR million Proforma Balance Sheet Snapshot 1 Mar19 Mar20 Mar21 Mar22 Mar23 Mar-24 9MFY24 9MFY25 Property, plant and equipment (PPE) 3,699 3,824 4,128 4,090 4,217 4,601 4,557 7,137  Capex stood at ₹1.37bn in 9M Right of use asset (RoU) 2 0 13 89 179 202 356

  42. Slide 42: Cohance Proforma – Key Ratios

    Cohance Proforma – Key Ratios Delivered significant improvement in the net working capital days, to sustain the ongoing effort. Key Ratios FY19 FY20 FY21 FY22 FY23 FY24 9MFY24 9MFY25 Basis Net Working Capital (as days of sales) 163 158 147 150 156 185 170 145 NWC / Revenue * 365 PPE (as % of sales)

  43. Slide 43: Annexure

    Annexure

  44. Slide 44: The ADC Segment

    | The ADC Segment

  45. Slide 45: Building blocks of Antibody Drug Conjugates (ADC) and Mechanism of Action

    Building blocks of Antibody Drug Conjugates (ADC) and Mechanism of Action Rapidly growing class of drugs intended at targeted delivery of highly potent and cytotoxic agents selectively to tumor tissue Exploring ADC composition • Antibody (mAB) is the targeting component of an ADC. It must be highly

  46. Slide 46: Transforming Therapies: Rapid expansion of ADC R&D Pipelines

    Transforming Therapies: Rapid expansion of ADC R&D Pipelines ADCs / XDCs as a class continue to see strong growth in R&D investments, providing strong foundation for CRDMO market Active programs by phase (2024) Total Total ADCs XDCs • ~750 active ADC / XDC programs in clinics or in preclinical phase

  47. Slide 47: Adequate Capacity to serve current and future demand

    Appendix - Adequate Capacity to serve current and future demand Vizag, Andhra Pradesh, India Pashamylaram, Telangana, India Suryapet, Telangana, India API’s/Advanced Intermediate’s/CMO API & Formulation Facility Intermediate Facility Hyderabad Knowledge City, o 706 KL reactor volume o 406 KL reactio

  48. Slide 48: Cohance's Specialized manufacturing capabilities

    COHANCE’S Specialized manufacturing capabilities API Unit-1, Andhra Pradesh, India API Unit-2, Andhra Pradesh, India API Unit-3, Gujrat, India FDF Unit-1, Telangana, India o 120 reactors, > 520Kl capacity o 1.8Bn OSDs and 350MT Pellets per annum o 46 reactors, >140Kl o 68 reactors, >420Kl capacity o

  49. Slide 49: Contact Information

    Contact Information Cyndrella Carvalho, Head - Investor Relations Suven Pharmaceuticals Ltd Email: cyndrella.carvalho@suvenpharm.com Gavin Desa / Rishab Barar CDR - India Tel: +91 98206 37649/ +91 77770 35061 Email: gavin@cdr-india.com / rishab@cdr-india.com Pg. 49

  50. Slide 50: Thank You

    4 Thank You

Suven Pharmaceuticals — Q3 FY25 Earnings Presentation on 6ix