Sun Pharmaceutical Industries Limited · NSE:SUNPHARMA
Sun Pharmaceutical Industries — Investor Presentation (June 2021)
53 slides from Sun Pharmaceutical Industries's investor presentation, June 2021
Slide 1: Creating Lasting Value
Creating Lasting Value Investor Presentation – June 2021 NSE:SUNPHARMA | BSE:524715 | Bloomberg:SUNP IN | Reuters:SUN.BO WWW.SUNPHARMA.COM
Slide 2: Disclaimer
Disclaimer Except for the historical information contained herein, statements in this presentation and the subsequent discussions, which include words or phrases such as “will”, “aim”, “will likely result”, “would”, “believe”, “may”, “expect”, “will continue”, “anticipate”, “estimate”, “intend”, “pl
Slide 3: Contents
Contents 1 Sun Pharma at a glance 2 Long-term Strategy 3 Global Specialty Initiatives 4 Revenue Composition, History & Acquisition Track Record 5 Business Operations, R&D, Manufacturing 6 Corporate Governance 7 Financials – P&L, Balance Sheet, Cash Flows & Ratios 8 Key Milestones Targeted © Sun Phar
Slide 4: Sun Pharma at a glance
Sun Pharma at a glance 4th Largest Global Specialty Generic Company* US • Ranked 10th in US Generics Market## India • No. 1 Pharma Company in India • Amongst the largest Indian Pharma Company in Emerging Emerging Markets Markets Rest of World • Expanding presence in Rest of World Manufacturing Footp
Slide 5: World's 4th Largest Specialty Generic Pharma Co
World’s 4th Largest Specialty Generic Pharma Co 0.0 2.0 2020 4.0Sales (US$ in billions) Worldwide Generic 6.0 8.0 Teva 8.5 Novartis 8.3 Viatris 5.3 Sun Pharma + Taro 3.8 Pfizer 3.6 Fresenius 3.3 Aurobindo 3.0 Apotex 2.5 Endo 1.9 Lupin 1.9 Dr. Reddy 1.9 Nichi-Iko 1.9 Sawai 1.8 STADA 1.8 Himka 1.7 Asp
Slide 6: Sun Pharma today
Sun Pharma today US Formulations India Branded Generics 10th largest generics company in US* with a strong No.1 ranked with 10 classes of doctor categories pipeline (94 ANDAs & 9 NDAs awaiting approval) Leading position in high growth chronic therapies Presence in Specialty branded & generics segmen
Slide 7: Driving Long Term Growth
Driving Long Term Growth • Optimize operational costs • Enhance share of specialty business globally • Vertically integrated operations • Achieve differentiation by focusing on technically complex products • Focus on key markets – achieve critical mass • Speed to market • Ensure sustained compliance
Slide 8: Our Specialty Portfolio
Our Specialty Portfolio • Indication - For plaque psoriasis • Launched in US in October 2018 & in Australia in Dec-2018, Phased launch in Europe by Almirall starting December 2018 onwards • Long term clinical data shows that the significant response rate seen in 52 & 64 Ilumya/ weeks were maintained
Slide 9: Our Specialty Portfolio
Our Specialty Portfolio • Indication - For LABCC (locally advanced basal cell carcinoma) Odomzo • Currently marketed in US, Germany, France, Denmark, Switzerland, Australia and Israel • Indication - For metastatic castration resistant prostate cancer in combination with Yonsa methylprednisolone • La
Slide 10: Highly Diversified Revenue Base
Highly Diversified Revenue Base Emerging Markets Western Europe & 18% Other Markets # 15% API & Others 6% FY21 Sales India Branded USD 4.5 billion Formulations 31% US Formulations 30% # Includes Western Europe, Canada, Japan , Australia, New Zealand and other markets. © Sun Pharmaceutical Industries
Slide 11: Impressive Track Record of Growth
Impressive Track Record of Growth (All Figures in USD Million) 4,464 799 799 4,262 1155 1096 398 Adjusted Sales 428 EBITDA Net Profit 1,256 CAGR CAGR 129 CAGR 370 18% 111 17% 13% FY06 FY11 FY16 FY21 FY06 FY11 FY16 FY21 FY06 FY11 FY16 FY21 654 1022 0.3 0.3 831 502 427 524 0.15 Operating Free Cash Adj
Slide 12: Consistent profitability and returns
Consistent profitability and returns Gross Margin # EBITDA Margin Net Margin (adjusted) 73.8% 24.5% 71.5% 72.6% 17.9% 71.4% 19.9% 20.7% 20.0% 12.7% 13.5% 12.5% FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 ROCE ROE Market Cap (USD Bn) 13.5% 12.5% 11.8% 19.3 11.1% 11.0% 18.3 9.4% 16.6 8
Slide 13: Profitability
Profitability Gross Margin EBITDA Margin Net Margin (Reported) 74% 73% 72% 71% 64% 64% 65% 64% 25% 20% 21% 20% 20% 16% 17% 16% 15% 12% 8% 9% 8% 9% 7% 8% FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 Gross margin= (Net Sales – Material Cost) / Net Sales * 100 Sun Pharma Range of Top 9 I
Slide 14: Creating a Global Company
Creating a Global Company Agreement with Merck for in- Acquired Began with 5 Acquired Dusa Acquired InSite Acquired Pola licensing Biosintez in Russia products Vision ophthalmic Pharma in Japan Tildrakizumab portfolio Year 1983 1994 2010 2012 2013 2014 2015 2016 2018 2019 2020 • Entry into Japan Lau
Slide 15: Key Deals & Rationale
Key Deals & Rationale Year Deals Country Rationale Middle Exclusive licensing agreement with East & Registration and commercialization of the product in all Middle 2020 Himka for Ilumya North East & North Africa (MENA) markets. Africa Licensing agreement with SPARC for Potential treatment for atopic
Slide 16: Key Deals & Rationale
Key Deals & Rationale Year Deals Country Rationale 2016 Acquired 14 brands from Novartis Japan Entry into Japan Distribution services agreement in India for brand “Oxra” & Distribution agreement with 2016 India “Oxramet”® (brands of dapagliflozin, used for diabetes AstraZeneca treatment) Distributio
Slide 17: US Business
US Business 30% of Revenues © Sun Pharmaceutical Industries Limited. All Rights Reserved. 17
Slide 18: US Business at a glance
US Business at a glance 10th Largest Pharma Company in the US Generics Market * Dermatology Segment • Ranked 2nd by prescriptions## in the US dermatology market • Wide basket of 595 ANDAs & 64 NDAs filed and 501 ANDAs & 55 Comprehensive Portfolio** NDAs approved across multiple therapies Robust Pipe
Slide 19: US Business – Sales buildup & Key milestone
US Business – Sales buildup & Key milestone Key Milestones in US Sales in USD Million FY98 •Entry in US through Caraco acquisition 10 year CAGR 11% •Acquired Taro Pharma – Entry into US FY10 dermatology market 2,244 2,066 •Acquired DUSA - Entry in branded specialty 2,051 FY13 market •Tildrakizumab f
Slide 20: ANDA Pipeline - Significant ramp up
ANDA Pipeline - Significant ramp up ANDAs Filed and Approved (Cumulative) ANDA Approvals by Therapeutic Area 584 581 595 129 561 571 501 112 483 453 427 422 67 48 51 31 19 15 14 15 CNS CVS Oncology Metabolism Others Gastro Skin Pain Allergy Antibiotic FY17 FY18 FY19 FY20 FY21 Cumulative Products Fil
Slide 21: India Branded Generic Business
India Branded Generic Business 31% of Revenues © Sun Pharmaceutical Industries Limited. All Rights Reserved. 21
Slide 22: India Business at a glance
India Business at a glance No. 1 in India Market Position** • No. 1 ranked with 8.2% market share Prescription Ranking## • No. 1 ranked by prescriptions with 10 different classes of doctors Chronic Segment • Market leader in the chronic segment Acute Segment • Strong positioning in the acute segment
Slide 23: Largest Pharma Company in India
Largest Pharma Company in India Market Share Branded Generic Sales in India as of 12 Months ended March 2021 (US$ in mn) 1,623 Sun Pharma 8.2% 1,260 Abbott + Abbott HC + Novo 6.3% 981 Cipla 4.9% 844 Zydus 4.3% 844 Mankind 4.3% 754 Lupin 3.8% 690 Alkem + Cachet + Indchemie 3.5% 621 Torrent 3.1% 603 I
Slide 24: India Business – Sales ramp-up
India Business – Sales ramp-up Leadership in chronic segment; Strong positioning in acute segment 28 brands in top 300 brands of country Sales in USD Mn Therapeutic Revenue Break-up** 14 year CAGR 10% Others One-time Opthalmology 3% 4% Cardiology impact of Urology 3% 18% change in 1,393 Gynaecology,
Slide 25: Leadership in key therapeutic areas
Leadership in key therapeutic areas* Number 1 Ranking with 10 Doctor Categories* Prescription Ranking Specialist Feb ‘17 Feb ‘18 Feb ’19 Feb ’20 Feb ’21 Psychiatrists 1 1 1 1 1 Neurologists 1 1 1 1 1 Cardiologists 1 1 1 1 1 Orthopaedic 1 1 1 1 1 Gastroenterologists 1 1 1 1 1 Diabetologists 1 1 1 1 1
Slide 26: Best-in-class field force productivity
Best-in-class field force productivity Sales Per Representative (USD ‘000) Impact of • Well trained and scientifically sales force expansion oriented sales representatives 143 team with strong performance track record 135 • Field force with highest productivity amongst key players 126 in India 124 1
Slide 27: Emerging Markets
Emerging Markets 18% of Revenues © Sun Pharmaceutical Industries Limited. All Rights Reserved. 27
Slide 28: Emerging Markets Business at a glance
Emerging Markets Business at a glance Amongst the leading Indian Companies in Emerging Markets Global footprint • Presence in about 80 markets • Romania, Russia, South Africa, Brazil, Mexico and complementary Focus Markets & affiliated markets Product Portfolio • Extensive basket of branded products
Slide 29: Western Europe, Canada, Japan, ANZ & Other Markets
Western Europe, Canada, Japan, ANZ & Other Markets 15% of Revenues © Sun Pharmaceutical Industries Limited. All Rights Reserved. 29
Slide 30: Western Europe & Other Markets at a glance
Western Europe & Other Markets at a glance Amongst the leading Indian Companies • Across all major markets in Western Europe, Canada, A&NZ, Japan Market Presence and few other markets • Expanding basket of products including specialty brands, Product Portfolio injectable & hospital products as well
Slide 31: Global Consumer Healthcare Business
Global Consumer Healthcare Business © Sun Pharmaceutical Industries Limited. All Rights Reserved. 31
Slide 32: Global Consumer Healthcare Business at a glance
Global Consumer Healthcare Business at a glance An Attractive Opportunity India • Amongst the top 10 consumer healthcare companies Global Presence • Presence in about 20+ countries • Romania, Russia, South Africa, Nigeria, Myanmar, Ukraine, Poland, Focus Markets Thailand, Belarus, Kazakhstan, Morocc
Slide 33: Active Pharmaceutical Ingredients (API) Business
Active Pharmaceutical Ingredients (API) Business 6% of Revenues © Sun Pharmaceutical Industries Limited. All Rights Reserved. 33
Slide 34: API Business
API Business Backward Integration – Strategic Importance • Backward integration provides cost competitiveness and supply Strategic Importance reliability Customers • Large generic and innovator companies Product Portfolio • Approximately 300 APIs Pipeline Development • Approx. 20-30 APIs scaled up a
Slide 35: Research & Development
Research & Development © Sun Pharmaceutical Industries Limited. All Rights Reserved. 35
Slide 36: Research & Development
Research & Development Cumulative R&D Spend of over USD 3 billion to date • R&D spend at 6.5% of sales for FY21 R&D Spend • Strong cash flows & large scale to support R&D investments • Capabilities in generics, finished dosage development, biological Capabilities support, chemistry and new drug deve
Slide 37: R&D Investments
R&D Investments R&D Investments Filings and Approvals 7.6% 8.6% 6.9% 6.1% 6.5% ANDA NDA/BLA DMF/CEP Patents** 345 349 64 479 1969 595 284 290 501 278 55 365 1287 FY17 FY18 FY19 FY20 FY21 Filed Approved Filed Approved Filed Approved Filed Granted ** Excludes Expired/Abandoned Patents R&D Investments
Slide 38: Global Manufacturing Presence
Global Manufacturing Presence © Sun Pharmaceutical Industries Limited. All Rights Reserved. 38
Slide 39: Global Manufacturing Presence
Global Manufacturing Presence World Class Manufacturing Infrastructure • 44 manufacturing facilities across India, the Americas, Asia, Africa, Extensive Global Footprint Australia and Europe • Vertically integrated network across six continents enabling high Integrated Network quality, low cost and
Slide 40: Manufacturing Facilities
Manufacturing Facilities 44 manufacturing sites • Formulation • India : 15, US : 3, Japan : 2 • Canada, Hungary , Israel, Bangladesh, South Africa, Malaysia, Romania, Egypt, Nigeria and Russia : 1 each • Capacities available for a variety of finished dosages • API • India : 9, Australia : 2, Israel
Slide 41: Corporate Governance
Corporate Governance Our philosophy on corporate governance envisages working towards high levels of transparency, accountability and consistent value systems across all facets of operations Chairman Independent Director Independent Director Israel Makov Vivek C. Sehgal Gautam B. Doshi Former Presid
Slide 42: Financials
Financials © Sun Pharmaceutical Industries Limited. All Rights Reserved. 42
Slide 43: Financials
Financials Market Capitalisation Rs. 1,600 billion / US$ 22 billion (as of 16th July 2021) ( All Figures in USD. Mn ) FY17 YoY FY18 YoY FY19 YoY FY20** YoY FY21 YoY P&L Summary Sales 4,512 6% 4,044 -10% 4,101 1% 4,559 11% 4,464 -2% Gross Profit 3,300 0% 2,892 -12% 2,976 3% 3,257 9% 3,294 1% EBITDA 1
Slide 44: Sales Break-up
Sales Break-up In USD Million Sales 4,512 4,044 4,101 4,559 4,464 245 289 284 385 229 264 638 649 675 461 494 776 779 751 767 2,051 1,487 1,359 1,357 1,526 1,246 1,369 1,393 1,155 1,051 FY17 FY18 FY19 FY20 FY21 India Formulations US Formulations Emerging Markets Rest of World API+Others #Exchange Ra
Slide 45: EBITDA Trend
EBITDA Trend In USD Million Sales 4,512 4,044 4,101 4,559 4,464 % of Sales 27% 27% 26% 28% 29% 16% 21% 21% 21% 20% 28% 29% 31% 31% 32% 29% 25% 20% 21% 20% FY17 FY18 FY19 FY20 FY21 EBITDA Other Expenditure Personnel Costs Material Costs © Sun Pharmaceutical Industries Limited. All Rights Reserved. 45
Slide 46: Cash Flow
Cash Flow Net Cash From Operating Activities (USD Mn) Free Cash Flow (USD Mn) 1,056 707 674 924 831 505 606 302 314 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 (145) © Sun Pharmaceutical Industries Limited. All Rights Reserved. 46
Slide 47: Financial Ratios
Financial Ratios FY17 FY18 FY19 ** FY20 FY21 Grow th (%) Sales 5.9 (10.4) 1.4 11.2 (2.1) Gross Profit 0.2 (12.4) 2.9 9.4 1.1 EBITDA 13.2 (38.5) 5.4 7.8 19.9 Net Profit 49.5 (68.7) 17.2 39.3 (26.3) Net Profit (Adjusted) 29.9 (50.7) # 8.3 # 2.4 # 40.8 # Marg ins (%) Gross Margin 73.1 71.5 72.6 71.4 73
Slide 48: Key Financials Q4 & FY21
Key Financials Q4 & FY21 ( All Figures in USD Mn ) Q4 FY21 Q4 FY20 CHANGE FY21 FY20 CHANGE Sales 1,156 1,115 3.7% 4,464 4,559 -2.1% Gross Profit 849 797 6.5% 3,294 3,257 1.1% Gross Margin 73.4% 71.5% 73.8% 71.4% EBITDA 268 173 54.7% 1,096 913 19.9% EBITDA Margin 23.2% 15.5% 24.5% 20.0% Net Profit 12
Slide 49: Sales Breakup Q4 & FY21
Sales Breakup Q4 & FY21 ( All Figures in USD. Mn ) Q4 FY21 Q4 FY20 CHANGE FY21 FY20 CHANGE Formulation India 366 327 12% 1,395 1,370 2% US 370 375 -1% 1,360 1,488 -9% Emerging Markets 192 187 3% 780 776 0% ROW 163 155 6% 650 638 2% Sub-total 1,092 1,043 5% 4,185 4,271 -2% API 60 67 -10% 262 270 -3%
Slide 50: Key Milestones targeted for future
Key Milestones targeted for future • Enhance share of specialty/branded business US Business • Continue to focus on complex generics and high entry barrier segments • Ensure broad product offering to customers across multiple dosage forms • Focus on productivity enhancement India • Maintain leadersh
Slide 51: Key Milestones targeted for future
Key Milestones targeted for future • Focus on developing complex products across multiple dosage forms R&D • Invest to further build the specialty pipeline • Ensuring 24x7 compliance to cGMP is imperative for a global business Regulatory/ • Continuously enhance systems, processes, human capabilities
Slide 52: Sun Pharma at a glance
Sun Pharma at a glance 4th Largest Global Specialty Generic Company* US • Ranked 10th in US Generics Market## India • No. 1 Pharma Company in India • Amongst the largest Indian Pharma Company in Emerging Emerging Markets Markets Rest of World • Expanding presence in Rest of World Manufacturing Footp
Slide 53: Thank You
Thank You! For more information please contact: Investors: Nimish Desai Thank You Tel : +91 22 4324 4324, Ext 2778 Tel Direct +91 22 4324 2778 nimish.desai@sunpharma.com Corporate Address: SUN HOUSE, CTS No. 201 B/1, Western Express Highway, Goregaon (E), Mumbai 400063 © 2017 Sun Pharmaceutical Indu
Sun Pharmaceutical Industries — Investor Presentation (June 2021) on 6ix