Wockhardt Limited · NSE:WOCKPHARMA
Wockhardt — Investor Presentation (February 2023)
35 slides from Wockhardt's investor presentation, Feb 21, 2023
Slide 1: Regulation 30 filing cover letter to stock exchanges
WOCK/SEC/SE/2022-23/068 21th February, 2023 BSE Limited National Stock Exchange of India Limited Corporate Relations Department Listing Department P J Towers, Exchange Plaza Dalal Street Bandra Kurla Complex, Bandra (E), Mumbai - 400 001 Mumbai - 400 051 Scrip Code: 532300 NSE Symbol – WOCKPHARMA De
Slide 2: Project Liberty: Opportunity to invest in US pharma business
Project Liberty Opportunity to invest in US pharma business Investor’s Presentation February 2023
Slide 3: Safe Harbor Statement
Safe Harbor Statement The Presentation is to provide the general background information about Wockhardt Limited’s (the “ Company’s ”) activities as at the date of the Presentation. The information contained herein is for general information purposes only and based on estimates and should not be cons
Slide 4: Snapshot of Wockhardt: 9M FY23
Snapshot of Wockhardt : 9M FY23 11 manufacturing facilities across world Revenues : INR 1,973 Cr. 2 R&D centres one each in India, UK, USA EBITDA: INR 86 Cr. ~ 520 scientists with >80 PhD’s, Drug Discovery team > 150 associates1 Long term external D/E Ratio 0.16x* >20% of the 5,400 global associates
Slide 5: Global Footprint: Significant Regulated market presence
Global Footprint : Significant Regulated market presence Global Footprint Capability – across different segments ► Generics ► 5,000 employees ► Branded ► Across US, EU, India & ► OTC Emerging Markets ► Hospital ► Solids, ► Liquids ► Injectables, ► Nasal Sprays ► Biotechnology ► Complex technologies
Slide 6: Key highlights
Key highlights 1 Business performance 2 Restructuring of US Business 3 Agreement with Serum for vaccine manufacturing in UK 4 Novel Antibiotics | Page 5
Slide 7: US Business Restructuring
2 US Business Restructuring US Cost Improvements Restructuring Business Site transfer from in-house Chicago site to CMOs In-house Manufacturing Post re-structuring Shut down of manufacturing facility at Morton Grove $ Few products with high margin Canada (CMO) manufactured by 3rd party $ USA CMO Con
Slide 8: Agreement with Serum for vaccine manufacturing at UK Facility
3 Agreement with Serum for vaccine manufacturing at UK Facility • Joint venture of 51:49 in favor of Wockhardt • Received £ 10 million as contribution for reserving capacity- 150 million doses across 15 years • Serum has identified two vaccines Wockhardt plans to manufacture post regulatory approval
Slide 9: Novel Antibiotics: Committed to Novel Antibiotics research
4 Novel Antibiotics 20 Committed to Novel Antibiotics research years Probably only company to have comprehensive end to end drug #1 discovery programs in Antibiotics Programs granted QIDP status by US FDA denoting unmet 6 needs; faster trials, quicker approvals by US FDA | Page 8
Slide 10: Nurturing aspiration for global leadership in antibiotic space
4 Nurturing aspiration for global leadership in antibiotic space 5 NCEs launched or in advanced-clinical development Launched Pipeline O 2 2 2 WCK 4873 WCK RECAR ZOLIFLO 4282 1 BRIO 1 DACIN 1 1 1 BAXDELA WCK DURLOB TANIBOR GEPOTID VABO- AVYCAZ ZERBAXA NUZYRA FETROJA 5222 ACTAM BACTAM ACIN MERE Wockh
Slide 11: Novel Antibiotics - WCK 4873
Novel Antibiotics- WCK 4873 • Signed licensing deal with Jemincare, China for development and Licensing commercialization in Greater China in China • Received first milestone from Jemincare India • Phase 3 clinical trial concluding by September 2023 Phase III • Marketing in India in 2024 post DCGI a
Slide 12: Novel Antibiotics - Emrok/Emrok-O
Novel Antibiotics- Emrok/Emrok-O India • Already marketed Emerging • Expect approvals in 8 emerging markets in next 6-9 months Markets | Page 11
Slide 13: WCK 5222: Rise in antibiotic resistance
WCK 5222- Flagship novel antibiotic Increase in • 2022 CDC report highlights rise in Anti-microbial Resistance during COVID-19 potential • Heightened vigilance reveals the rising level of threat WCK 5222 90% 78% 80% Rise in antibiotic resistance 70% rates during COVID https://www.cdc.gov/drugre 60%
Slide 14: WCK 5222: Global Phase III progress
WCK 5222- Flagship novel antibiotic Global • Global Phase III clinical trial initiated in August 2022 and expected to Phase III complete in next 15-18 months. progress • Expect to market product in USA, Europe, China & India in 2025 • 3 critical patients; all other antibiotics options exhausted incl
Slide 15: Compassionate use of WCK 5222
Compassionate use of WCK 5222 Recently under DCGI Permission 3 patients in India with life-threatening infection received WCK 5222 on compassionate ground since available antibiotics were not efficacious Patient 1 (Sep. 2022) Patient 2 (Nov-Dec. 2022) Patient 3 (under treatment) 50 y, female admit
Slide 16: WCK 6777: Funding Stage
WCK 6777 Funding • By National Institute of Health, USA Stage • In Phase I US development | Page 15
Slide 17: Financial / Business Highlights
Financial / Business Highlights | Page 16
Slide 18: Deleveraging: Reducing Long term external Debt
Deleveraging: Reducing Long term external Debt Long term external Debt position 3,218 (INR Cr.) 2,982 2,487 India External Debt 2,070 2,085 1,998 International External Debt 1,509 1,287 1,348 812 743 608 1,149 251 984 978 737 253 544 561 355 FY17 FY18 FY19 FY20 FY21 FY22 December 2022 0.96 0.93 Long
Slide 19: Promoter is fully committed to support the Company
Promoters commitment Promoter Loans (INR Cr.) INR 709 Quasi- equity Cr. 709 469 518 208 ~INR 500 Rights Issue - Conversion of Promoter Debt Cr. into Equity March 2020 March 2021 March 2022 December 2022 Promoter is fully committed to support the Company | Page 18
Slide 20: Key Metrics Performance – Sales Revenues
Key Metrics Performance – Sales Revenues Sales excl. Vaccines (INR Cr.) 673 699 578 Q1 FY23 Q2 FY23 Q3 FY23 | Page 19
Slide 21: Key Metrics Performance – Steady improvement in EBITDA
Key Metrics Performance – Steady improvement in EBITDA EBITDA excl. Vaccines (INR Cr.) 59 39 -27 Q1 FY23 Q2 FY23 Q3 FY23 | Page 20
Slide 22: Cash Flow Movement
Cash Flow Movement Q3 FY23 (INR Cr.) Positive Deleveraging Promoter Investments OCF commitment Opening Cash from Total Debt Promoter Total Funds R&D Closing Balance Ops Repayment Infusion Balance & Interest | Page 21
Slide 23: UK Business
UK Business Revenue Performance Key Highlights: • Comprehensive, FDA-approved manufacturing facility for sterile injectables. • Present in key therapies across Cardiac, Pain & Analgesics, Vitamins, Respiratory & Diabetes, Oncology, Anti-Infectives 223 220 • Collaboration with UK Government and Astra
Slide 24: India Business
India Business Revenue Performance Key Highlights: • Therapeutic focus across Diabetes , Nephro, Anti-Infectives, Pain / Analgesics, Vitamins & Nutrients, Neuro / CNS and others. 175 158 • One of the few Indian Companies who are into Manufacturing 150 of Insulin, Glargine & OSD in Diabetes Q3 FY22 Q
Slide 25: Emerging Markets Business
Emerging Markets Business Revenue Performance 9M FY23 3% 5% 4% Africa Asia CIS 31% 27% LatAm MENA New Markets + Others 30% 148 Key Highlights: 117 117 • De-risked model of Operations - partnerships & relationship building. • Differential & end to end Business model from Research to Manufacturing to
Slide 26: Growth Drivers
Growth Drivers | Page 25
Slide 27: Wockhardt 2.0 - Strategic pillars which will drive growth
Wockhardt 2.0 - Strategic pillars which will drive growth ► Affordable, Complex Generics, Sterile Injectable ► Focus on differentiated products, NDDS, New Drug Complex technologies ► Global Gx Market ~ $ Discovery 200 Bn Biologics ► Focus on global reach Antibiotics drug discovery Vaccines ► Compreh
Slide 28: Short-term and Mid-term growth drivers
Short-term and Mid-term growth drivers Mid term growth drivers (2-3 years) 1 Novel drug discovery Short Term growth drivers (1-2 years) 1 Diabetes Biosimilars for Emerging markets 2 Collaboration for Vaccines with Serum Institute 3 Focus on improving profitability and Cash flow | Page 27
Slide 29: Growth Drivers – Diabetes Biosimilar (EMs)
1 Growth Drivers – Diabetes Biosimilar (EMs) Increased market share Focus on Human Insulin and Insulin Glargine > US$ 1.5 Billion market Registered in emerging markets New market launches > 25 markets Limited competition 6-7 Sustainable competitive players advantage API + Manufacturing infrastructur
Slide 30: Competitive advantage by providing end to end solutions in Diabetes Biosimilars
Competitive advantage by providing end to end solutions in 1 Diabetes Biosimilars R&D ► Focus on Insulin analogues, GLP-1 analogues Manufacturing ► Pilot to large scale capabilities for API & formulations Integrated Capabilities Regulatory ► Registrations in 25+ countries1 Patented delivery devices
Slide 31: Collaboration for Vaccines
2 Collaboration for Vaccines Contract with UK Govt. for fill-finish supply for AstraZeneca/University of Oxford Covid-19 vaccine Serum Institute Supplied >60% of all Covid-19 Vaccines in UK Dedicated manufacturing in UK for 14% of AstraZeneca Europe up to 150 Million doses per annum > 90 COVAX count
Slide 32: Antibiotic-resistant bacteria [6 super bugs] – silent killer
3 Antibiotic-resistant bacteria [6 super bugs] – silent killer COVID-19 killed 5 million people in two years1 Strong COVID-19 evidence for inadequacy In 2019, six super bugs killed 5 million people2 of current antibiotics Super bugs Deaths 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000
Slide 33: Novel Antibiotics pipeline against Resistant Organisms
3 Novel Antibiotics pipeline against Resistant Organisms Emrok / WCK 5222 WCK 4282 WCK 4873 WCK 6777 Emrok O Phase III (Global) Phase III (Global) Phase III (EM) Launched in India Phase Phase I Filing 2023 EM Filing underway Potential cUTI cUTI CABP / RTI ABSSSI cUTI Indication HABP / VABP HABP / VA
Slide 34: Our journey ahead – target key milestones
Our journey ahead – target key milestones FY 2024 FY 2025 Insulin Glargine Insulin Aspart Approval in MENA, LATAM & Other markets Launch in India Insulin Aspart WCK 4873 India: Filing in 2024 Approved and launch in India Emrok/Emrok O WCK 5222 Approval in Emerging Markets Filing and approval in US W
Slide 35: Life wins !
Life wins ! Impacting Life Saving Life Affordability Stakeholders | Page 34