Syngene International Ltd. · NSE:SYNGENE
Syngene International — Investor Presentation (June 2018)
31 slides from Syngene International's investor presentation, June 2018
Slide 1: Investor Presentation
Investor Presentation June 2018
Slide 2: Safe Harbour
Safe Harbour Certain statements in this release concerning our future growth prospects are forward-looking statements, which are subject to a number of risks, uncertainties and assumptions that could cause actual results to differ materially from those contemplated in such forward-looking statements
Slide 3: Introduction
Introduction Putting Science to Work
Slide 4: Introduction
Introduction The Biocon Group Syngene’s Shareholding Pattern1 Services Based Syngene ESOP 1.5% Contract Discovery Contract Development Contract Manufacturing Promoter 71.6% Public 26.9% Product Based Biosimilars Formulations and Compounds Alternative Therapeutic Drugs 4 1 As of 30th
Slide 5: Overview
Overview Established in 1994 as India’s first Contract Research Organization – 25 years of unparalleled experience in novel molecule discovery & development services Integrated service platform for small & large molecules, antibody-drug conjugates and oligonucleotides World class infrastructur
Slide 6: Recent Business Highlights
Recent Business Highlights All figures in INR Cr unless otherwise specified Quarter Highlights: P&L Summary Q1 FY19 Q1 FY18 YoY Change Solid revenue performance in Q1 FY19 primarily driven by Revenue 425 308 38% momentum in Biologics Manufacturing, Discovery Services EBITDA 128 113 13% and Chemica
Slide 7: Journey Over the Years
Journey Over the Years 20,000 sq. ft facility 1.3 million sq. ft facility Infrastructure 100+ ~4,100 People - Chemistry - Preliminary biology - End-to-End discovery, development and manufacturing capabilities Capabilities $5 million $255 million Investment 7 * For the year ended 31st March, 2018 Put
Slide 8: Who We Are Today: A Global High Growth CRO Company
Who We Are Today: A Global High Growth CRO Company One of the leading India-based CROs Strong Growth and Profitability Integrated discovery and development platform Focus on novel molecular entities 14,849 12,716 316(1) clients across multiple sectors 11,133 95%(1) of revenues from outside India 8,7
Slide 9: Who we are and what we do
Putting Science to Work Who we are and what we do Combining world class research talent and infrastructure with the Indian cost advantage Converting R&D to a variable cost for clients Moving beyond cost arbitrage to R&D productivity and innovation Key Differentiators of Growth Scalable Predict
Slide 10: Our Industry
Our Industry Putting Science to Work
Slide 11: Global Pharma R&D Trends
Global Pharma R&D Trends Large and growing addressable market Industry Statistics Global R&D expenditure expected to increase from $139bn (USD bn) in 2014 to $152bn in 2018 (CAGR of 2.3%) Global R&D Spending Global CRO Market(1) 75% of R&D spend can be potentially outsourced Increasing per u
Slide 12: Global CRO Market: Over US$43bn and Growing
Global CRO Market: Over US$43bn and Growing Outsourcing Market by Stage of DD Continuum Significant Growth in APAC (USD bn) Global NME Discovery Outsourcing Market (USD bn) 67.2 22.7 15.2 43.4 14.7 15.2 9.2 24.7 15.8 4.6 10.5 3.8 22.7 7.5 14.7 4.2 2014 2018 2014 2018 Discovery Preclinical Clinical (
Slide 13: Business Overview
Business Overview Putting Science to Work
Slide 14: The Drug Discovery Continuum
The Drug Discovery Continuum Discovery Development Commercialisation Pre- clinical Clinical Target Lead Product Animal Ph Ph Ph Drug filing launch Identification Generation with FDA & Lead Safety I II III other global Selection regulatory Target Target API and Drug product authorities Marketing/ Dev
Slide 15: Fully Integrated Services Platform…
Fully Integrated Services Platform… Discovery Development Manufacturing Drug Substance Chemistry Development Clinical Supplies Drug Product Development Specialty Molecules Biology Small Molecules Integrated Drug Substance – Drug Product Commercial Supplies Integrated drug discovery Clinical Services
Slide 16: …With Multiple Entry Points
…With Multiple Entry Points Discovery Development Commercialisation Pre- clinical Clinical Target Lead Product Animal Ph Ph Ph Drug filing launch Identification Generation with FDA & Lead Safety I II III other global Selection regulatory Target Target API and Drug product authorities Marketing/ Deve
Slide 17: Integrated Platform to Build Strategic Relationships
Integrated Platform to Build Strategic Relationships Customer Focus Cost Arbitrage R&D Productivity Innovation Multiple Services Dedicated Play Integrated Play Capabilities/ Complexity Cluster Plays Component Plays Single Service Small/Short Term Scale/Predictability Larger/Long Term 17 Putting Scie
Slide 18: Verticals Overview
Verticals Overview Dedicated centers Discovery Services Development & • Integrated Services • Discovery Chemistry, Discovery Manufacturing Services • Dedicated Infrastructure customized Biology and in-vivo services • Preclinical studies, Stability, for client’s requirements • Peptide Synthesis Formu
Slide 19: Dedicated R&D Centers
Dedicated R&D Centers Exclusive R&D Center for Amgen Largest R&D Center in Asia for Dedicated R&D Center in India for Inc. in India (2016). Herbalife’s 1st Nutrition Research BMS (2009). Contract extended till Baxter (2013). Contract extended and Development Lab in India 2026. till 2024. State-of-th
Slide 20: Discovery Services: From Target to a Drug Candidate
Discovery Services: From Target to a Drug Candidate Candidate Hit to Lead Lead Optimization Development Selection Candidate Candidate 5 Lead Selection Development Compounds Exploratory PK, Tox & Developability Assessment 20 Lead In-Vivo DMPK Profiling, Compounds CADD 500 Lead Generation of focused C
Slide 21: Development Services
Development Services Encompass activities across multiple disciplines as a molecule moves from pre-clinical to clinical trials Preclinical Clinical Studies Studies Key activities include: Drug product Drug substance development (process R&D and Drug Dvpt. Substance optimization) Dvpt. Viral Bi
Slide 22: Manufacturing Services
Manufacturing Services Small Molecules • State-of-the-art cGMP facility to Manufacture NCEs • Designed to support multi gram to 100s of kgs/ batch of Intermediates & APIs for Clinical Trials; Current capacity can support initial commercial supplies • New greenfield investment being made in Mangalore
Slide 23: Multiple Layers of Growth
Multiple Layers of Growth Expand/Extend existing clients Capacity Expansion - High service integration - Consistent expansion - Dedicated centres model - FTE services, manufacturing, formulation, biologics, stability Engage New Clients - Tailored service offerings and Customer Capacity dedicated per
Slide 24: Financial Highlights
Financial Highlights Putting Science to Work
Slide 25: Q1 FY19 Financial Highlights
Q1 FY19 Financial Highlights All figures in INR Mn unless otherwise specified Particulars Q1 FY19 Q1 FY18 YoY Change Revenue 4,248 3,083 38% Material & Power costs 1,396 788 77% Employee costs 1,077 860 25% Gross Margin 1,775 1,435 24% Gross Margin (%) 42% 47% Foreign Exchange (net) (106) (161) (34%
Slide 26: FY18 Financial Highlights
FY18 Financial Highlights All figures in INR Mn unless otherwise specified Particulars FY18 FY17 YoY Change Balance Sheet Highlights Revenue 14,849 12,716 17% Material & Power costs 4,164 3,522 18% As on 31st March 2018 Employee costs 3,796 3,086 23% Gross Margin 6,889 6,108 13% Shareholders’ funds
Slide 27: Strong Track Record Of Topline Growth…
Strong Track Record Of Topline Growth… Total Revenue (INR Mn) Growth driven by increase in sales from existing clients and acquisition of new clients “Engage, expand and extend” strategy to extend 14,849 client relationship over a longer period of time 12,716 11,133 Growth in total number of c
Slide 28: …With Best-in-Class Profitability
…With Best-in-Class Profitability All figures in INR Mn unless otherwise specified Operating Margin (EBITDA) Profit After Tax Margin (Net Income) 23% 21% 38% 22% 35% 35% 20% 3,054 34% 19% 2,873 31% 5,266 4,783 2,408 3,866 1,750 2,928 1,339 2,217 FY2014 FY2015 FY2016 FY2017 FY2018 FY2014 FY2015 FY201
Slide 29: Capital Expenditure
Capital Expenditure Historical Capital Investments – Average Gross Block (INR Mn) Planned Capital Expenditure Expansion Capex of US$200 million envisaged over FY16 to FY19 14,708 12,063 6,819 8,255 10,169 Future funding requirements to be met through internal accruals & debt Capex investment are
Slide 30: Managing Risks
Managing Risks Risk Mitigation Client growth and sustained retention Proactive client engagement and sustained quality Comprehensive hedging policy and tracking mechanism Currency fluctuation (USD/INR) in place Significant capex investment over next few years Staggered investments in line with busin
Slide 31: THANK YOU
THANK YOU For more details www.syngeneintl.com • Visit www.syngeneintl.com • IR Contact : Chanderlekha Nayar +91 80 6775 8821 +91 725 919 2001 chanderlekha.nayar@syngeneintl.com
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