Slide 1: Unichem Laboratories Limited Investor Presentation
Unichem Laboratories Limited UNICHEM Investor Presentation October, 2012 ©Unichem Laboratories Ltd 1
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
Slide 3: Agenda
Agenda 1. Profile & History 2. Growth & Profitability 3. Business Operations – Domestic Operations – – UNICHEM International Operations API Operations 4. Research & Development 5. Management & Governance 6. Financials ©Unichem Laboratories Ltd 3
Slide 4: Profile
Profile One of the India’s leading integrated Pharmaceutical Companies with a strong presence in domestic formulations market Ranked 28th in the Domestic Formulations market as per AWACS MAT Aug, 2012 Amongst the top # 17 companies in representative (covered) market Domestic Operations contribute 63
Slide 5: History - Key Milestones
History - Key Milestones (Last 10 Years) USFDA certification USFDA Expansion of of Goa Plant re-certification Packaging USFDA of Goa Plant & facility at Joint Venture Launch of certification Roha Plant GOA Plant – Niche Specialties of Ghaziabad Generics Division Plant Construction Sikkim Plant & of
Slide 6: Agenda
Agenda 1. Profile & History 2. Growth & Profitability 3. Business Operations – Domestic Operations – – UNICHEM International Operations API Operations 4. Research & Development 5. Management & Governance 6. Financials ©Unichem Laboratories Ltd 6
Slide 7: Consolidated Financials: Growing Steadily & Focus on Profitability
Unichem Crores} Consolidated Financials {Rs. Crores} Growing Steadily & Focus on Profitability 2011-12 2001-02 2006-07 2008-09 2009-10 2010-11 (HY) Revenue 824 876 735 747 3.0 + Fold Increase 628 + 10% CAGR 558 Op Inc 270 UNICHEM 3.0 + Fold Increase 177 158 152 129 + 10% CAGR 103 98 42 Rev Ebitda Re
Slide 8: Agenda
Agenda 1. Profile & History 2. Growth & Profitability 3. Business Operations – Domestic Operations – – UNICHEM International Operations API Operations 4. Research & Development 5. Management & Governance 6. Financials ©Unichem Laboratories Ltd 8
Slide 9: The Indian Pharma Market
The Indian Pharma Market Current Estimated Size of IPM (MAT Aug, 2012) is Rs. 64,949 Crores Market Growth MAT Aug – 16.8% 4 Year CAGR – 14%+ India ranks globally 3rd by volume and 12th by value Expected to rank 8th by value by 2016 UNICHEM Future growth projections vary from an optimistic 15% p.a. t
Slide 10: Revenue & Business areas break-up 2011-12
Revenue & Business areas break- break-up 2011--12 Consolidated – FY 2011 Revenue Break-up by Segment Revenue Break-up by Region Rs. Crores Rs. Crores 25.0 77.9 (8.9 %) 51.9 (2.9 %) (5.9 %) 73.4 (8.4 %) 266.9 535.7 (30.5 %) 142.5 (61.2 %) 556.6 (16.2 %) (63.6 %) 20.9 (2.4%) UNICHEM Formulation - Dome
Slide 11: Revenue & Business areas break-up 2012-13
Revenue & Business areas break- break-up 2012--13 Consolidated – HY 2012 Revenue Break-up by Segment Revenue Break-up by Region Rs. Crores Rs. Crores 38.9 28.1 22.2 7.0% 5.1% 4.0% 44.5 8.0% 99.2 176.7 17.7% 31.6% 341.6 353.7 61.1% 63.3% UNICHEM 12.1 2.2% Formulation - Domestic Regulated Markets API
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 Portfolio UNICHEM Price Control Appx 20% of Domestic Portfolio (in valu
Slide 13: Cash Generation – Pre R&D Expenses
Cash Generation – Pre R & D Expenses Rs. Crores 2012-13 2007-08 2008-09 2009-10 2010-11 2011-12 Cumulative {HY} Positive Cash Flow 118.3 168.4 188.7 179.6 152.1 94.5 901.6 Spending: R & D Expenditure 21.6 23.5 29.7 40.5 39.7 6.8 161.8 Capital Expenditure UNICHEM 80.0 45.5 44.3 84.2 106.5 41.2 401.7
Slide 14: Unichem in The Indian Pharma Market
Unichem in The Indian Pharma Market Rs. Crores Indian Pharmaceutical Market MAT Aug, 2012 % Gth Total Size of the Market 67496 16.9 Unichem Represented (Covered) Market 30,898 16.2 Top Companies in Covered Market 1 Ranbaxy 1,845 7.6 2 Sun Pharma 1,767 26.2 3 GSK 1,646 21.6 4 5 Mankind Alkem UNICHEM
Slide 15: Unichem's Therapy Gaps in the market
Unichem’s Therapy Gaps in the market MAT Aug’ 12 % of Total No. of Sub- % of Total Value Rs. Crs Value Segments No. of Segments Unichem Non-Represented Segments 36,598 54.2% 2,244 88.6% Unichem Represented Segments 30,898 45.8% 290 11.4% Total Market 67,496 100.0% 2,534 100.0% Unichem is represented
Slide 16: Domestic Formulations SBU Divisions
Domestic Formulations SBU Divisions Chronic Therapy Acute Therapy Cardiovascular Cardio Cardio--Diabeto Integra Neu Foreva UVA Unikare Pharma Unifem Focusing on: Focusing on: Focusing on: Focusing on: Focusing on: Focusing on: Focusing on: Focusing on: Cardiologists, Cardiologists, Cardiologists, Ne
Slide 17: Domestic Formulations Business
Domestic Formulations Business Therapeutic Segment- Segment-wise break break--up Leadership position in key participated segments 3% 4% 3% 2% 1% – Largest brand / brand extensions in excess 2% of Rs150cr 10% 47% 13% # 4 Brands in Top 300 brands 15% – Ampoxin, Losar H, Losar, & Trika In 19 therapeuti
Slide 18: Brand Building – Focus Brand Portfolio
Brand Building – Focus Brand Portfolio # Top 10 Brands contributes nearly 50% of the company’s domestic revenues – Ampoxin,, Losar, Ampoxin Losar, Losar H, Trika, Trika, Unienzyme, TG TG--Tor, Vizylac, Vizylac, Telsar, Telsar, Olsar, Olsar, and Metride # 50 Brands contributes appx 82% of the company
Slide 19: Top Product Groups Performance
Top 10 Product Groups Performance Rs. Crores % MAT Aug, % Apri ~ Aug % Market % Contribution 2012 Growth 2012 Share* Growth to Revenue Total Revenue 690 5.1 296 1.0 7.9 100.0 Losar Group 158 0.7 69 30.3 6.9 23.0 Ampoxin Group 57 (4.0) 23 30.1 3.2 8.2 Unienzyme 38 40.0 20 15.3 64.1 5.5 Telsar Group T
Slide 20: AWACS Data – MAT Aug, 2012
AWACS Data – MAT Aug, 2012 Representative Market Unichem Laboratories Therapy Market Segment Size (Rs. Crs) % Growth Sales (Rs. Crs) % Share % Growth Cardiac Care 4,806 21.1 322 6.7 5.2 Anti-Infectives 8,550 12.4 106 1.2 1.6 Neuro-Psychiatry 1,984 16.6 87 4.4 (2.9) Gastroenterologicals 3,492 15.5 72
Slide 21: AWACS Data Monthly Sales & MAT August 2012
AWACS Data Monthly Sales & MAT- MAT- August, 2012 Market Size Value Growth Unichem Value Growth % Market Indicators (Crs) (%) (Crs) (%) Share MAT Aug’ 12 67,496 16.9 690 5.1 1.0% Sept’ 11 5,758 15.1 58 (1.4) 1.0% Oct’ 11 5,440 14.0 54 (2.3) 1.0% Nov’ 11 5,715 21.9 57 4.8 1.0% Dec’ 11 5,525 UNICHEM 1
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 – Baddi (HP) – essentially cate
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 – Product Portfolio Optimization & Field Resource Allocation relating to Chronic Therapy – Enhancing relationship with customers and Focus on
Slide 24: Agenda
Agenda 1. Profile & History 2. Growth & Profitability 3. Business Operations – Domestic Operations – – UNICHEM International Operations API Operations 4. Research & Development 5. Management & Governance 6. Financials ©Unichem Laboratories Ltd 24
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 More than # 500 Regulatory filings (DMFs, EDMFs. e-CTDs, ACTDs etc) UNICHEM # 27 US ANDAs filed so far and # 13 of which
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
Slide 27: International Business – Formulations: Europe
International Business – Formulations Zone 2 : Europe EUROPE – Niche Generics Business Model Geographic Mix – FY 2011-12 European presence through 100% subsidiary - Niche Generics, UK The subsidiary identifies products for development, Europe - 27 % recommends these products to Unichem for US / Cana
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 capability with integrated end-t
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
Slide 30: Agenda
Agenda 1. Profile & History 2. Growth & Profitability 3. Business Operations – Domestic Operations – – UNICHEM International Operations API Operations 4. Research & Development 5. Management & Governance 6. Financials ©Unichem Laboratories Ltd 30
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
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 Bendroflumethiazide Anti Hyper
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 / Anti 20 Metronidazone
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
Slide 35: API Total Revenue Break-up
Total Revenue F Y 2011 - 12 H Y 2012 - 13 Revenue Break-up by Segment Revenue Break-up by Segment Domestic Domestic 22% 22% Exports 78% Exports 78% UNICHEM Export Revenue Break-up by Export Revenue Break-up by Region Region USA / Canada 1% USA/ ROW 17% ROW Canada 32% 1% Europe, 67% Europe 82% Total
Slide 36: Management Focus: API's for Generic Markets
Management Focus API’s for Generic Markets Improve Profitability of API Business Focus on profitable Generic APIs to New customers in existing Regulated Markets Penetrate into New Regulated Markets Achieve cost leadership in 3~4 molecules UNICHEM Long term Supply Contracts with customers in Regulate
Slide 37: Agenda
Agenda 1. Profile & History 2. Growth & Profitability 3. Business Operations – Domestic Operations – – UNICHEM International Operations API Operations 4. Research & Development 5. Management & Governance 6. Financials ©Unichem Laboratories Ltd 37
Slide 38: Focus: R&D Strategy
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 – Developed novel & innovati
Slide 39: Agenda
Agenda 1. Profile & History 2. Growth & Profitability 3. Business Operations – Domestic Operations – – UNICHEM International Operations API Operations 4. Research & Development 5. Management & Governance 6. Financials ©Unichem Laboratories Ltd 39
Slide 40: Management & Governance
Management & Governance Board of Directors (Dr. P A Mody; Mr. Prafull Anubhai Anubhai;; Mr. Ramdas M Gandhi; Mr. Nasser Munjee; Munjee; Mr. Prafull D Sheth Sheth;; Mr. Anand Mahajan Mahajan)) Shareholders Audit Committee Compensation Grievance Committee Committee Chairman & Managing Director UNICHEM
Slide 41: Agenda
Agenda 1. Profile & History 2. Growth & Profitability 3. Business Operations – Domestic Operations – – UNICHEM International Operations API Operations 4. Research & Development 5. Management & Governance 6. Financials ©Unichem Laboratories Ltd 41
Slide 42: Standalone Financials
Standalone Financials For three For three For six months For six months % % Particulars months ended months ended ended ended Sept 30, 2012 Sept 30, 2011 Growth Sep 30, 2012 Sep 30, 2011 Growth Sales Income from Operations: Domestic Operations Formulations 17,210.69 14,287.88 20.5% 34,059.50 28,212.
Slide 43: Standalone Financials (Sequential Quarters)
Standalone Financials (Sequential Quarters) For three For three Particulars months ended months ended % Growth Sept 30, 2012 June 30, 2012 Sales Income from Operations: Domestic Operations Formulations 17,210.69 16,848.80 2.1% API 451.51 762.55 -40.8% International Operations Formulations 5,810.61 6
Slide 44: Thank You
Thank You ©Unichem Laboratories Ltd 44