Unichem Laboratories Limited · NSE:UNICHEMLAB

Unichem Laboratories — Q1 FY2014 Earnings Presentation

44 slides from Unichem Laboratories's earnings presentation, July 2013

  1. Slide 1: Unichem Laboratories Investor Presentation July 2013

    Unichem Laboratories Limited UNICHEM Investor Presentation July, 2013 ©Unichem Laboratories Ltd 1

  2. Slide 2: Safe Harbor Statement

    Safe Harbor Statement This presentation may include certain forward-looking statements and information that involve risks, uncertainties and assumptions based on current expectations, within the meaning of applicable laws and regulations. Forward-looking statements are all statements that concern pl

  3. Slide 3: Agenda

    Agenda 1. Profile & History 2. Growth & Profitability UNICHEM 3. Business Operations – Domestic Operations – International Operations – API Operations 4. Research & Development 5. Management & Governance 6. Financials ©Unichem Laboratories Ltd 3

  4. Slide 4: Profile

    Profile One of the India’s leading integrated Pharmaceutical Companies with a strong presence in domestic formulations market Ranked 27th in the Domestic Formulations market as per AWACS MAT June, 2013 Amongst the top # 18 companies in representative (covered) market Domestic Operations contribute 6

  5. Slide 5: History - Key Milestones

    History - Key Milestones (Last 10 Years)  USFDA certification  USFDA  Expansion of  Realignment of Goa Plant re-certification Packaging of Chronic  USFDA of Goa Plant & facility at Care Portfolio  Launch of certification Roha Plant GOA Plant Specialties of Ghaziabad  Re-location of Division P

  6. Slide 6: Agenda

    Agenda 1. Profile & History 2. Growth & Profitability UNICHEM 3. Business Operations – Domestic Operations – International Operations – API Operations 4. Research & Development 5. Management & Governance 6. Financials ©Unichem Laboratories Ltd 6

  7. Slide 7: Consolidated Financials: Growing Steadily & Focus on Profitability

    Unichem Consolidated Financials {Rs. Crores} Growing Steadily & Focus on Profitability 2012-13 2001-02 2006-07 2008-09 2009-10 2010-11 2011-12 2012-13 Q1 Revenue 1081 4.0 + Fold Increase 876 UNICHEM 824 + 12% CAGR 735 747 628 Op Inc 270 284 152 177 158 188 4.0 + Fold Increase 103 129 42 48 + 13% CAG

  8. Slide 8: Agenda

    Agenda 1. Profile & History 2. Growth & Profitability UNICHEM 3. Business Operations – Domestic Operations – International Operations – API Operations 4. Research & Development 5. Management & Governance 6. Financials ©Unichem Laboratories Ltd 8

  9. Slide 9: The Indian Pharma Market

    The Indian Pharma Market  Current Estimated Size of IPM (MAT June, 2013) is Rs. 72,069 Crores  Market Growth MAT June – 9.8 %  4 Year CAGR – 14%+ UNICHEM  India ranks globally 3rd by volume and 12th by value  Expected to rank 8th by value by 2016  Future growth projections vary from an optimis

  10. Slide 10: Revenue & Business areas break-up FY 2012-13

    Revenue & Business areas break-up Consolidated – FY 2012-13 Revenue Break-up by Segment Revenue Break-up by Region Rs. Crores Rs. Crores 90.0 70.9 47.7 8.3% 6.6% 4.4% UNICHEM 84.1 7.8% 352.3 636.7 32.6% 201.4 58.9% 657.6 18.6% 60.8% 20.9 2.0% Formulation - Domestic Regulated Markets API - Domestic I

  11. Slide 11: Revenue & Business areas break-up Q1 FY 2013-14

    Revenue & Business areas break-up Consolidated – Q1 FY 2013-14 Revenue Break-up by Segment Revenue Break-up by Region Rs. Crores Rs. Crores 14.2 22.0 12.2 (5.1 %) (7.7 %) (4.3 %) UNICHEM 26.3 (9.2 %) 92.2 175.6 (32.4 %) 41.9 (61.8 %) 179.6 (14.8 %) (63.3 %) 4.0 (1.4%) Formulation - Domestic API - Do

  12. Slide 12: Portfolio Scene: Therapy Dominance & Price Control

    Portfolio SCENE Therapy Dominance & Price Control Therapy Therapy  Major Revenue contributors:  Chronic care accounts for # 65%* of Domestic Formulation Revenues  Acute portfolio accounts for # 35%* of Domestic Formulation Revenues UNICHEM Portfolio Price Control  Appx 20% of Domestic Portfolio

  13. Slide 13: Cash Generation – Pre R&D Expenses

    Cash Generation – Pre R & D Expenses Rs. Crores 2008-09 2009-10 2010-11 2011-12 2012-13 Cumulative Positive Cash Flow 168.4 188.7 179.6 152.1 201.3 890.1 Spending: UNICHEM R & D Expenditure 23.5 29.7 40.5 39.7 36.4 169.8 Capital Expenditure 45.5 44.3 84.2 106.5 76.1 356.6 Investment in Subs 19.0 10.

  14. Slide 14: Unichem in The Indian Pharma Market

    Unichem in The Indian Pharma Market Rs. Crores Indian Pharmaceutical Market MAT June, 2013 % Gth Total Size of the Market 72,069 9.8 Unichem Represented (Covered) Market 33,650 10.5 Top Companies in Covered Market UNICHEM 1 Sun Pharma 1,845 21.6 2 Ranbaxy 1,782 6.3 3 Alkem 1,642 11.3 4 Mankind 1,443

  15. Slide 15: Unichem's Therapy Gaps in the market

    Unichem’s Therapy Gaps in the market MAT Mar’ 13 % of Total No. of Sub- % of Total Value Rs. Crs Value Segments No. of Segments Unichem Non-Represented Segments 38,420 53.3% 2,441 89.5% Unichem Represented Segments 33,650 46.7% 287 10.5% Total Market 72,069 100.0% 2,728 100.0% UNICHEM  Unichem is r

  16. Slide 16: Domestic Formulations SBU Divisions

    Domestic Formulations SBU Divisions Chronic Therapy Acute Therapy Cardiovascular Cardio-Diabeto Integra Neu Foreva UVA Unikare Vector Vitus Focusing on: Focusing on: Focusing on: Focusing on: Focusing on: Focusing on: Focusing on: Focusing on: Cardiologists, Cardiologists, Cardiologists, Neurologist

  17. Slide 17: Domestic Formulations Business

    Domestic Formulations Business Therapeutic Segment-wise break-up Leadership position in key participated segments 3% 4% 3% 2% 1% – Largest brand / brand extensions in excess 2% of Rs165cr 11% UNICHEM 47% 12% # 4 Brands in Top 300 brands 15% – Ampoxin, Losar H, Losar, & Trika In 19 therapeutic groups

  18. Slide 18: Brand Building – Focus Brand Portfolio

    Brand Building – Focus Brand Portfolio # Top 10 Brands contributes nearly 50% of the company’s domestic revenues – Losar H, Losar, Ampoxin, Unienzyme, Trika, Vizylac, Linox, Telsar, Telsar H and TG-Tor – UNICHEM # 50 Brands contributes appx 83% of the company’s domestic revenues – # 3 - Rs. 50 + cro

  19. Slide 19: Top Product Groups Performance

    Top 10 Product Groups Performance Rs. Crores % MAT June, % % Market Contribution 2013 Growth Share to Revenue Total Revenue 730 7.5 1.0 Losar Group 170 10.4 32.7 23.3 UNICHEM Ampoxin Group 61 0.4 30.1 8.4 Unienzyme 45 27.4 14.7 6.1 Telsar Group 43 17.5 4.7 5.9 Trika Group 36 5.2 23.5 4.9 Olsar Group

  20. Slide 20: AWACS Data – MAT June 2013

    AWACS Data – MAT JUNE, 2013 Representative Market Unichem Laboratories Therapy Market Segment Size (Rs. Crs) % Growth Sales (Rs. Crs) % Share % Growth Cardiac Care 5,424 12.8 346 6.4 9.8 Anti-Infectives 8,789 8.7 113 1.3 7.2 UNICHEM Neuro-Psychiatry 2,281 12.1 87 3.8 2.9 Gastroenterologicals 4,111 9

  21. Slide 21: AWACS Data: Monthly Sales & MAT June 2013

    AWACS Data Monthly Sales & MAT- June, 2013 Market Size Value Growth Unichem Value Growth % Market Indicators (Crs) (%) (Crs) (%) Share MAT June’ 13 72,069 9.8 730 7.5 1.0 July’ 12 5,913 15.4 60 8.8 1.0 UNICHEM August’ 12 6,308 14.1 63 8.1 1.0 September’ 12 6,467 13.0 63 8.8 1.0 October’ 12 6,449 19.

  22. Slide 22: Globally Accredited State of the art Manufacturing Facilities

    Globally Accredited State of the art Manufacturing Facilities APIs – Roha (Maharashtra) – Multi purpose plants Regulatory approvals - USFDA, EDQM, TGA and ISO 9001:2000 compliant – Pithampur (MP) – Multi purpose plants Regulatory approvals – USFDA , EUGMP Formulations UNICHEM – Baddi (HP) – essentia

  23. Slide 23: Domestic Market – Management Focus

    Domestic Market – Management Focus Domestic Market – Entry into unrepresented / uncovered market segments Entered Hospital and Gynecology segments in 2011-12. Currently focusing on portfolio augmentation for enhanced coverage – Enhancing relationship with customers and Focus on Field Productivity UN

  24. Slide 24: Agenda

    Agenda 1. Profile & History 2. Growth & Profitability UNICHEM 3. Business Operations – Domestic Operations – International Operations – API Operations 4. Research & Development 5. Management & Governance 6. Financials ©Unichem Laboratories Ltd 24

  25. Slide 25: International Business

    International Business Company has made significant investments in building infrastructure to support international business More than # 600 product registrations across the world UNICHEM More than # 500 Regulatory filings (DMFs, EDMFs. e-CTDs, ACTDs etc) # 29 US ANDAs filed so far and # 15 of which

  26. Slide 26: International Business – Formulations: Emerging Global Markets

    International Business – Formulations Zone 1 : Emerging Global Markets Strategic alliances in place for distribution and marketing of branded generics Geographic Mix – FY 2011-12 – In SAARC countries, S.E Asia, Baltic Republics, CIS, Central Asian Republics, Africa and the Middle east South East, 36

  27. Slide 27: International Business – Formulations: Europe

    International Business – Formulations Zone 2 : Europe EUROPE Geographic Mix – FY 2011-12  European presence through 100% subsidiary - Niche Generics, UK  The subsidiary identifies products for development, recommends these products to Unichem for US / Canada - Europe - 27 % development. In the lat

  28. Slide 28: International Business – Formulations: USA and LATAM

    International Business – Formulations Zone 2 : USA and LATAM UINITED STATES:  UNICHEM PHARMACEUTICALS (USA) Inc - wholly owned subsidiary to manage ANDA filings and Business Development  Business model is based on leveraging Unichem’s technical expertise and production UNICHEM capability with inte

  29. Slide 29: International Market – Management Focus

    International Market – Management Focus United States – Develop long term relationships with local partners – Finalize tie-ups for launching ANDA approved products – More ANDAs filings and approvals – Capitalize end-to-end value chain – Forge relationship with Innovators to become building blocks in

  30. Slide 30: Agenda

    Agenda 1. Profile & History 2. Growth & Profitability UNICHEM 3. Business Operations – Domestic Operations – International Operations – API Operations 4. Research & Development 5. Management & Governance 6. Financials ©Unichem Laboratories Ltd 30

  31. Slide 31: World class Manufacturing Facilities and Infrastructure

    World class Manufacturing Facilities and Infrastructure Roha (Maharashtra) – Multi purpose plants Regulatory approvals – USFDA, EDQM, TGA and ISO 9001:2000 compliant UNICHEM Pithampur (MP) – Multi purpose plants Regulatory audits – USFDA, EUGMP ©Unichem Laboratories Ltd 31

  32. Slide 32: Key APIs

    Key APIs Sr. Canadian EDMF / Japanese Technical Current Product List Therapeutic Uses US DMF COS No DMF ASMF DMF Package 1 Alfuzosin Hydrochloride Alphablocker     2 Amlodipine Besylate Anti Hypertensive      3 Amlodipine Maleate Anti Hypertensive   4 Aripiprazole Antipsychotic    5 Be

  33. Slide 33: Key APIs

    Key APIs Sr. Canadian Japanese Technical Current Product List Therapeutic Uses US DMF EDMF COS No DMF DMF Package 17 Losartan Potassium Anti Hypertensive   ◘  18 Meloxicam COX II Inhibitor  *     NMDA Receptor  19 Memantine Hydrochloride Antagonist, Alzheimer’s   disease Anti Protozoal /

  34. Slide 34: Key APIs (Under Development)

    Key APIs (Under Development) Sr. No Current Product List Therapeutic Uses US DMF EDMF Technical Package 1 Atomoxetine Hydrochloride Noradrenaline Reuptake Inhibitor ** ** ** 2 Bepotastine Benzene Sulphonate Antihistamine ** ** ** 3 Bimatoprost Ant-Glaucoma ** ** ** 4 Brinzolamide Carbonic Anhydrase

  35. Slide 35: Total Revenue

    Total Revenue F Y 2012 - 13 Q1 - F Y 2013 - 14 Revenue Break-up by Segment Revenue Break-up by Segment Domestic Domestic 20% 13 % UNICHEM Exports Exports 80% 87 % Export Revenue Break-up by Export Revenue Break-up by Region Region USA / Canada 3 % USA/ ROW ROW 21 % Canada 20% 2% Europe 76 % Europe,

  36. Slide 36: Management Focus

    Management Focus API’s for Generic Markets Improve Profitability of API Business Focus on profitable Generic APIs to New customers in existing Regulated Markets UNICHEM Penetrate into New Regulated Markets Achieve cost leadership in 3~4 molecules Long term Supply Contracts with customers in Regulate

  37. Slide 37: Agenda

    Agenda 1. Profile & History 2. Growth & Profitability UNICHEM 3. Business Operations – Domestic Operations – International Operations – API Operations 4. Research & Development 5. Management & Governance 6. Financials ©Unichem Laboratories Ltd 37

  38. Slide 38: R&D Focus

    Focus Unichem has a two fold R & D strategy – Development of Novel Drug Delivery Systems (NDDS) – Development of patent non-infringing processes for APIs Chemical R & D – State-of-the-art facility at Mumbai offering the most conducive environment for value added research UNICHEM – Developed novel &

  39. Slide 39: Agenda

    Agenda 1. Profile & History 2. Growth & Profitability UNICHEM 3. Business Operations – Domestic Operations – International Operations – API Operations 4. Research & Development 5. Management & Governance 6. Financials ©Unichem Laboratories Ltd 39

  40. Slide 40: Management & Governance

    Management & Governance Board of Directors (Dr. P A Mody; Mr. Prafull Anubhai; Mr. Ramdas M Gandhi; Mr. Nasser Munjee; Mr. Prafull D Sheth; Mr. Anand Mahajan) Shareholders Audit Committee Compensation Grievance Committee Committee UNICHEM Chairman & Managing Director Divisional Heads CEO – Pharmaceu

  41. Slide 41: Agenda

    Agenda 1. Profile & History 2. Growth & Profitability UNICHEM 3. Business Operations – Domestic Operations – International Operations – API Operations 4. Research & Development 5. Management & Governance 6. Financials ©Unichem Laboratories Ltd 41

  42. Slide 42: Standalone Financials

    Standalone Financials Analysis of Quarterly unaudited Financial Results for the three months ended 30th June, 2013 For three months For three months ended ended Particulars % Growth June 30, 2013 June 30, 2012 (Unaudited) (Unaudited) Sales Income from Operations: Domestic Operations Formulations 17,

  43. Slide 43: Standalone Financials (Sequential Quarters)

    Standalone Financials (Sequential Quarters) Analysis of Sequential Quarters Unaudited Financial Results for Quarter ended 30th June, 2013 STAND ALONE FINANCIALS For three For three Particulars months ended months ended % Growth June 30, 2013 Mar 31, 2013 Sales Income from Operations: Domestic Operat

  44. Slide 44: Thank You

    Thank You ©Unichem Laboratories Ltd 44

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