Torrent Pharmaceuticals Ltd · NSE:TORNTPHARM
Torrent Pharmaceuticals — Investor Presentation (July 2015)
26 slides from Torrent Pharmaceuticals's investor presentation, July 2015
Slide 1: Investor Presentation
Investor Presentation JULY 2015
Slide 2: Simplifying Strategy, Diversifying capabilities
Simplifying Strategy, Diversifying capabilities
Slide 3: 4 levers: Simplifying Strategy, Diversifying capabilities
4 levers: Simplifying Strategy, Diversifying capabilities Acquiring newer and complex development skills leading to diversified product delivery capabilities Simplicity Segmenting specialty Skill Simplifying and focus and geographies Harmonising Marketing for scaling up Scale Strategies Speed Speed
Slide 4: Organizational Transformation - A balanced, integrated program
Organizational Transformation - A balanced, integrated program Other USA India Emerging Europe markets Then: Driven by Then: Oral Solids Then: Chronic Then: Lack of Germany & Oral only driven business Harmonization Solids Future: Future: Complex Harmonized efforts capabilities, New Now: Acute the Fu
Slide 5: Torrent – Current standing & Long term strategy
Torrent – Current standing & Long term strategy India (1608 Crs) USA (827 Crs) Among Top 15 cos., Strong presence in Late entrant, Duloxetine, Aripiprazole CV/CNS/VMN/GI market among Early entry players Strategy: Strengthening access in Dermatology, Gynaecology, Oncology, Nephrology, Pain Strategy:
Slide 6: Performance snapshot
July 15 Performance snapshot
Slide 7: Performance trend by market (Crs.)
4 years CAGR PERFORMANCE TREND (CRS.) 2011-12 2012-13 2013-14 2014-15 1609 18% 18% 66% 19% 1161 1024 954 934 926 909 876 827 780 764 661 657 558 327 211 INDIA BG BG -OTHER BG EMERGING USA EU & GENERIC MARKETS MARKETS MKTS BG – Branded Generics. %ages reflect CAGR over the period
Slide 8: The driving factors
The driving factors 4 years performance 5000 4653 4500 4223 4000 3500 3255 3000 2740 2500 2000 1500 1279 951 1000 655 501 500 0 2011-12 2012-13 2013-14 2014-15 Revenue EBIDTA Topline CAGR % : 20% Bottomline CAGR: 35% Margin driven by USA and India
Slide 9: EBIDTA – Outperforming Industry Average
EBIDTA – Outperforming Industry Average 27 22 23 20 21 20 20 19 2010-11 2011-12 2012-13 2013-14 2014-15 Industry Avg Torrent Pharma Higher than Industry avg EBIDTA Margins • Driven by Brands, Niche products, Field Force productivity Margin Expansion further to be driven by • Elder Acquired portfolio
Slide 10: Future Outlook
Future Outlook The factors for sustainability
Slide 11: The Priorities
The Priorities Generics Branded Generics Highest Complex Quality NDDS & First generics Specialty focus time launches standards Strengths in India: Acute Business Multiple FF Productivity portfolio Development channels driving growth Priority markets – 1. India, 2. USA, 3. Other markets BG & Europe G
Slide 12: The Priorities
India: Acute as the new growth driver India: Other BG: Chronic therapy as Harmonization & Growth Driver Centralized Strategy (Glocal approach) Other BG: De- Centralized Strategy The Priorities Key BG Markets
Slide 13: Branded Generics Markets – Long term sustainability
Branded Generics Markets – Long term sustainability Unlocking Pharma growth - Mckinsey
Slide 14: India Business
India Business • Focus on brand building and productivity improvement to continue. (8 brands 100 crs + by 18-19, currently 2 brands) • Rationalization :: Field Force (500 over 3 years ) • Portfolio realignment to bring in better Synergies 2018-19 Brand Value Estimate 350 300 300 250 195 200 150 120
Slide 15: Granularity of Growth – India Business
Granularity of Growth – India Business CAGR% (3Y) Key Performance Parameters (Last 3 years) Company (2013/14/15) • Highest PCPM growth in IPM top 20 : 24% IPM 10 (rationalized 848 cumulative last 3 years) MACLEODS 19 • Among the lowest top 2 cos. On quarterly GLENMARK 17 Standard deviation in Growth
Slide 16: Branded Generics Market – Harmonizing with the GLOCAL Approach
Branded Generics Market – Harmonizing with the GLOCAL Approach • Initiatives for 2015-16 • Marketing model • Harmonization of Harmonization • Specialty focus • NI Pipeline • Marketing practices • Product pipeline • NDDS innovation & Investments • Lead/Build Brand model Brand building across all BG M
Slide 17: Brazil & Other Key BG Markets
Brazil & Other Key BG Markets BRAZIL – Streamlining for growth TPL Key BG markets Portfolio Re-alignments - BRAZIL BG Market • Higher Specialty focus & Investments India • 2 Teams aligned as per Specialty Brazil Philippines Strategy Shapes structure Sri Lanka Malaysia • Dedicated teams for CNS & CND
Slide 18: Generics
US: Complex Products, Onco US: Oral Solids Europe: OTC Europe: Specialty Generics
Slide 19: The opportunities - USA
The opportunities - USA Pipeline being augmented with - Intranasal, Derma ointments/creams, Injectables & Specialty Oral Solids (Oncology) Mckinsey LOE – Loss of Exclusivity
Slide 20: USA – Moving up the value chain
USA – Moving up the value chain…. Strengthening Presence with Growth drivers – Growth drivers – customers & pipeline size and Business Development operational diversification improvements Increasing # of projects - Among top 3 players in 53 ANDA approvals + 19 14 molecules pending + 44 Products Augm
Slide 21: Europe
Europe Germany Rest of Europe Standing Licensing Business • 74% of the generic market into tenders • Torrent Generic Market Coverage 62% • Market share in Tender business : 6.2% • Forge partnerships with regional companies • Ranked 6th amongst generic companies in north and south Europe • 20% CAGR (
Slide 22: R & D / Manufacturing
R & D / Manufacturing
Slide 23: R & D – Preparing for the future
R & D – Preparing for the future • Consistently higher spend in the Number of Projects for International markets years ahead New Projects Total running Projects • Spend at over 6% planned 174 • India Business 124 105 • 180 products added for next 5 96 74 64 63 years (Last 3 years: 30) 49 45 • 100 ND
Slide 24: R&D Spend – Going up to 6 to 8% in the years ahead
R&D Spend – Going up to 6 to 8% in the years ahead R&D% spend 7.00% 6.00% 6.00% 4.49% 4.80% 5.00% 4.26% 4.00% 3.00% 2.00% 1.00% 0.00% 2012-13 2013-14 2014-15 2015-16 Higher R&D spend • In line with industry standards from 2015-16 Improved Output • Higher number of projects per year • Global developm
Slide 25: Manufacturing & Supply Sources
Manufacturing & Supply Sources • Audits • US FDA audit completed successfully at Indrad & Dahej plant in April 2015 • Additional Capacity & Capex • Dahej : Commercial Mfg from Dec 2015 • New expansion Sikkim : Additional capacity coming up • Manufacturing plant for Oncology products –Oral solids, in
Slide 26: Thank You
Thank You This information may contain certain forward-looking statements/ details in the current scenario, which is extremely dynamic and increasingly fraught with risks and uncertainties. Actual results, performances, achievements or sequence of events may be materially different from the views ex
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