Zydus Lifesciences Limited · NSE:ZYDUSLIFE
Zydus Lifesciences — Motilal Oswal 16th Annual Global Investor Conference 2020
37 slides from Zydus Lifesciences's conference presentation, August 2020
Slide 1: Innovation: Avoid At Your Own Risk
CEO Track - Motilal Oswal 16th Annual Global Investor Conference 2020 Innovation : Avoid At Your Own Risk Dr. Sharvil Patel I MD, Cadila Healthcare Ltd. 1
Slide 2: Context
Context 1 Why do we need Innovation? 2 Product Innovations at Zydus 3 Process Innovations at Zydus 4 Zydus : Current Stand 2
Slide 3: India known as Pharmacy of the world on the back of process innovation
On the back of its process innovation, India is known as “Pharmacy of the world” Pharma Exports from India (USD $bn) 19.1 17.3 India : 16.9 16.8 16.3 "Pharmacy of the World”… …. is the largest provider of generic drugs globally. Indian FY16 FY17 FY18 FY19 FY20 pharmaceutical sector supplies India’s
Slide 4: During 2010 to 2015, Indian Pharma index outperformed market
During 2010 to 2015, Indian Pharma index outperformed market… 2010-15 NIFTY 50 vs. NIFTY Pharma Index 2010 2015 NIFTY 50 NIFTY Pharma 4
Slide 5: ...but in last few years, Pharma index has underperformed
…but in last few years, Pharma index has underperformed NIFTY Pharma Index vs. 2015-20 NIFTY 50 Index NIFTY 50 NIFTY Pharma 1. Growth trajectory 0.7x 0. 1.3x 3x 0.7X 0.7 has slowed down 2010 2015 X 7x 2019 2010 2015 2019 owing to… Profitability for Top 10 Indian Pharma Companies •Uncertain market 10
Slide 6: Innovation will be an essential ingredient in future growth of Indian Pharma
Innovation will be an essential ingredient in future growth recipes of Indian Pharma companies… … the next growth leap is through stepping in innovative and research based drugs Innovation / Complex NCE Generic generics exports to developed Generic countries exports to developing countries API Expor
Slide 7: Innovation will play a critical role in augmenting industry contribution
Innovation will play a critical role in this journey and help augment industries contribution to Indian and global healthcare Innovation can drive significant health and The industry needs to maintain its relevance by expanding into NME space that accounts for economic benefits for India 2/3rd of gl
Slide 8: Five key building blocks to enable innovation at scale in India
Focus is required across five key building blocks to enable “innovation at scale” in India Significant room for improvement Need for enabling regulations to spur innovation Room for improvement Current regulatory landscape is fraught with multiple challenges including long undefined review timelines
Slide 9: Context
Context 1 Why do we need Innovation? 2 Product Innovations at Zydus 3 Process Innovations at Zydus 4 Zydus : Current Stand 99
Slide 10: Creating healthier communities through innovation and bridging unmet needs
At Zydus, we aim to create healthier communities through our Innovation, making therapies accessible and bridging unmet needs NCE & NBEs Vaccine Gx, Specialty & Complex Gx Multiple NCEs 1st Indian in pipeline company to launch Saroglitazar – lead molecule indigenously developed H1N1 vaccine 150+ pro
Slide 11: Saroglitazar is a novel drug with approvals for multiple emerging markets
Saroglitazar is a novel drug with approvals for multiple emerging markets • The approval of Saroglitazar was based upon the results of the EVIDENCES I, II and IV studies • Drug met its primary and secondary endpoints in the US Phase II EVIDENCES IV trial Future milestone Future milestone • Expected
Slide 12: Innovation engine fueled by centers of excellence
Zydus’ Innovation engine is fueled by centers of excellence... Steady investments in R&D R&D Cost % of net sales In INR billion 8.2 8.1 7.4 7.9 7.4 NCE / NBE Research Biotech Research 9.4 11 7.6 7.5 8.6 FY16 FY17 FY18 FY19 FY20 1400+ Scientific Pool Formulation Development Vaccines Research 12
Slide 13: NCEs & NBEs: Sustainable future growth drivers
NCEs & NBEs: Sustainable future growth drivers.. NCEs Pipeline ~275 Project Target Indication Drug Lead Preclinical IND Phase I Phase Phase NDA Marketed Dedicated Scientists Discovery Optimization Dev. II III Anemia-CKD-ND/ D 4 Desidustat HIF-PH COVID-19 inhibitor NCEs in clinical development Chemo
Slide 14: Zydus aims to be a global player in Biosimilars
Zydus aims to be a global player in the evolving Biosimilars Space More than A key A portfolio of A team of 18 years Growth Driver 10+ 300+ of experience of biosimilars for the India & Emerging Markets commercial biosimilars in Indian scientists in R&D and development Business Market Manufacturing R
Slide 15: Biosimilars pipeline targets products worth ~$65 Bn of brand sales
Zydus’ biosimilars pipeline targets 21 products worth ~ $65 Bn of brand sales value Drug Sales 2019 (Brand) Competitive Intensity1 Zydus Portfolio Biosimilars launched in Adalimumab $ 19.17 B High Indian market Trastuzumab $ 6.08 B High 1. IFNα-2b Pegfilgrastim $ 3.5 B High 2. PEG-IFN Bevacizumab $
Slide 16: Zydus is an emerging player in the Vaccine space (1/2)
Zydus is an emerging player in the Vaccine space (1/2) 20+ years Growth Driver 5 300+ …of experience. started …major growth driver Manufacturing (3) and …dedicated scientists and journey in 1998 for India & Emerging markets R&D (2) Facilities Workforce Current Strengths & Capabilities Portfolio R&D
Slide 17: Zydus is an emerging player in the Vaccine space (2/2)
Zydus is an emerging player in the Vaccine space (2/2) Zydus Vaccine Portfolio DTP, Measles, MR, MMR, TCV, Addressable Market Pediatric Varicella vaccine Opportunity * vaccine India Public Market Portfolio of over Adult Flu, HPV vaccines 15 vaccines vaccine ~ $ 70 M Vaccine Market Size by 2026 Addre
Slide 18: Zydus vaccine for COVID-19 (ZyCoV-D)
Zydus’ vaccine for COVID-19 (ZyCoV-D): Rapid Discovery and Product Development with strong Clinical and Regulatory Expertise Pivotal Trials - Large scale manufacturing being planned COVID-19 Process & Formulation ZyCoV-D at-risk to deliver millions of Sequence developed Animal studies doses in 2020-
Slide 19: Zydus pioneer in launching new products in India
In India, Zydus has been pioneer in launching new products to meet the unmet needs.. IP Driven / FTI Day-1 Devices with Differentiated Gx / Opportunities Launches Formulation PLC Management No of Products #16 #28 #11 #24 Annualised value 400+ Cr* Respiratory, Cardio-Metabolic, Respiratory, GI, Pain,
Slide 20: Ongoing investments in portfolio offer growth in US generics
Ongoing investments in product portfolio offers additional growth opportunities in US generics business over long term time-horizon Complex Injectable/ Topical/ Oral IR Oncology Generic Device Inj. Transdermal/Nasal Product Under development 65 41 31 13 17 Addressable Market Size ($M) $35,064 $12,20
Slide 21: Developing portfolio of complex generic injectable products in US
In US, Zydus is developing a portfolio of complex generic injectable products, including drug device combination products Zydus US 107 Products Participative Robust portfolio with a mix of Day-1 / Injectable Portfolio $28B Market 181, Me too, complex generics and niche product opportunities Well bal
Slide 22: US growth through first to files and limited competition products
Mid to Long term growth in US is planned through set of first to files & limited competition products 28 Products $560 mn Annual Value ZYDUS STATUS ZYDUS ADVANTAGE $36.8 bn peak market sales FTF In $180.5 Developm 32% ent $227.6 Limited $840 mn 41% Filed $332.3 59% Competiti on Potential additional
Slide 23: Future US growth through branded portfolio via 505(b)(2)
Future growth in US will be driven by developing branded product portfolio through 505b(2) Initiatives Therapy Area Focus Developing portfolio mix of in-house & LCM products 9 addressing unmet need and aligned to focused therapy Products Portfolio areas CNS Orphan 1 Pre IND- 2 Products 2 NDA- 1 Prod
Slide 24: Zydus Wellness consolidated position with Heinz portfolio integration
Zydus Wellness has consolidated its position in Wellness segment with integration of Heinz Portfolio Food Skin Care Instant energy Health food Sugar Butter Premium Natural Prickly heat powder drink substitute substitute healthy ghee skin care powder SAMPRITI #1 #4 #1 #1 #11 #1 Zydus Wellness’ Brands
Slide 25: Zydus Wellness: Nourish, Nurture and Energize; new launches
At Zydus Wellness, we strive to reimagine wellness & health in a holistic manner with focus on - Nourish, Nurture and Energize your life New Launches- Innovation in Times of Covid SugarFree Green Nycil Hand Complan Nutrigro Glucon D ImmunoVolt Complan Sachet Nutralite Choco • New formulation Sanitiz
Slide 26: Innovative solution to combat Covid-19
Zydus has employed an INNOVATIVE solution to combat the pandemic of Covid-19 Multi pronged approach to combat COVID-19 Diagnostic Wellness Prophylactic Therapeutic NCE & Immunity Products Products Vaccines Products Biologicals Booster Business • Launched Covid- • We have preponed • Our DNA Vaccine •
Slide 27: Context
Context 1 Why do we need Innovation? 2 Product Innovations at Zydus 3 Process Innovations at Zydus 4 Zydus : Current Stand 27 27
Slide 28: Digital initiatives as process innovation: Project PACE and IRIS
Zydus undertook digital initiatives as a process innovation to drive the execution & agility for new products Project PACE Project IRIS Planning and Collaboration Excellence (PACE) Integrated Real-time Information System (IRIS) An initiative to digitize end to end supply chain processes that include
Slide 29: Leapfrogging in digital space with comprehensive initiatives
Zydus is leapfrogging at digital space with comprehensive initiatives Shift in stakeholder behavior …driving digital innovation in due to recent events… our commercial model • 84% doctors adopted virtual consultations Digital engagement with doctors through • 63% will continue teleconsultations post
Slide 30: Manufacturing processes and systems innovated and managed digitally
Most of our manufacturing processes and systems are completely innovated and managed digitally Management Metrics - Dashboard & Goal based Paperless Engg One-Click Maintenance Ease to Use & Intuitive User Interface AR/VR -Remote guidance & assistance -Surveying in Quality Control Application -Traini
Slide 31: Innovative approach in quality management
Innovative approach in quality management….. ZyTIMS ZyDMS Training Management Software Paperless Environment ZyARTS Manage all QMS process in monitoring centralized database Completed Document Management System Artwork Management System 31
Slide 32: Context
Context 1 Why do we need Innovation? 2 Product Innovations at Zydus 3 Process Innovations at Zydus 4 Zydus : Corporate Overview 32 32
Slide 33: Zydus – Business Overview
Zydus – Business Overview 65+ years $5.5 Bn1 ~$146 Mn2 36 25000+ Business Excellence Market Cap R&D Spend in FY20 Manufacturing Facilities Employees Global Footprint Sales Split (FY20)2 18% CAGR in revenues in 2 decades2 $1.84 Bn 3% 1% 1% 6% 4% 13% ~$1.84 Bn 45% Revenue $0.48 Bn 27% US Formulations
Slide 34: Zydus – Business Overview
Zydus – Business Overview Year Revenue1 EBITDA1 Profit1 EPS1 Market Cap Unlocking the FY20 $1842 Mn $371 Mn $195 Mn $0.19 $5.5 Bn2 Potential FY05 $166 Mn $30 Mn $16 Mn $0.24 $0.4 Bn3 Delivering what we promise Sustainable growth 20% Global Expansion Total shareholder return over ~$1.84 Bn1 15 Years
Slide 35: Zydus Wellness: Poised for the next Big Leap
Zydus Wellness: Poised for the next Big Leap ~30 years #1 Science and Trusted of brands with a strong brand recall in Sugar substitutes, Instant energy Innovation value powder, Butter substitute and Skin Operational excellence led product portfolio Care Wellness Financials Value accretive acquisitio
Slide 36: Thank You
‘ears oF Growth & Innovation Thank You Bn
Slide 37: Disclaimer and Safe Harbour Statement
DISCLAIMER AND SAFE HARBOUR STATEMENT THIS PRESENTATION (PRESENTATION) IS NOT AN OFFER TO SELL ANY SECURITIES OR A SOLICITATION TO BUY ANY SECURITIES OF CADILA HEALTHCARE LIMITED OR ITS SUBSIDIARIES OR JOINT VENTURES (TOGETHER, THE “COMPANY”). The material that follows is a Presentation of general b
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