Unichem Laboratories Limited · NSE:UNICHEMLAB
Unichem Laboratories — H1 FY2017 Earnings Presentation
39 slides from Unichem Laboratories's earnings presentation, 2016
Slide 1: Investor Presentation Q2 & H1 FY 2017
Unichem Laboratories Limited UNICHEM Investor Presentation Q2 & H1 FY 2017 ©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 UNICHEM 3. Business Operations – Domestic Operations – 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 26th in the Domestic Formulations market as per AWACS MAT Sept 2016 Amongst the top # 18 companies in representative (covered) market Domestic Operations contribute ~5
Slide 5: History - Key Milestones (Last 10 Years)
History - Key Milestones USFDA’s surprise inspection at 3 (Last 10 Years) Re-location of plants R&D from USFDA Mumbai to Goa EIR received from re-certification of (CoE). Filings USFDA, for Goa, Goa Plant & commissioned Ghaziabad, Roha Plant from new R&D Pithampur and Roha USFDA USFDA Cen
Slide 6: Agenda
Agenda 1. Profile & History 2. Growth & Profitability UNICHEM 3. Business Operations – Domestic Operations – International Operations – API Operations 4. Research & Development 5. Management & Governance 6. Financials ©Unichem Laboratories Ltd 6
Slide 7: Consolidated Financials {Rs. Crores}
Consolidated Financials {Rs. Crores} 1,600 18.0% 16.1% 15.7% 1,400 1,335 16.0% 13.5% 14.0% 1,200 12.3% UNICHEM 1,133 12.0% 1,000 1,081 1,202 8.4% 10.0% 800 876 8.0% 600 6.0% 400 4.0% 200 2.0% - 0.0% FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 Revenue EBITDA Margin ©Unichem Laboratories Ltd 7
Slide 8: Standalone EBITDA Profile
Standalone EBITDA Profile from FY 15 onwards 44 43 44 39.6 33 34 34 31 15 12 UNICHEM 15 13.8 11.3 11.1 10.4 12.9 10.8 8 5.8 3 Q1 FY15 Q2 FY15 Q3 FY15 Q4 FY15 Q1 FY16 Q2 FY16 Q3 FY16 Q4 FY16 Q1 FY17 Q2 FY17 EBITDA MARGINS ©Unichem Laboratories Ltd 8
Slide 9: Agenda
Agenda 1. Profile & History 2. Growth & Profitability UNICHEM 3. Business Operations – Domestic Operations – International Operations – API Operations 4. Research & Development 5. Management & Governance 6. Financials ©Unichem Laboratories Ltd 9
Slide 10: Revenue & Business areas break-up FY 2016
Revenue & Business areas break-up Consolidated – FY 2016 Revenue Break-up by Segment Revenue Break-up by Region Rs. Crores Rs. Crores 70 , 65, 65 , 21 , 5% UNICHEM 5% 5% 2% 146 , 11% 502, 38% 743 , 270 , 766, 56% 21% 57% Formulation - Domestic International Business -US/Brazil India Business Regulat
Slide 11: Revenue & Business areas break-up H1 FY 2017
Revenue & Business areas break-up Consolidated – H1 FY 2017 Revenue Break-up by Region Revenue Break-up by Region Rs. Crores Rs. Crores 7, 38, 32, 1% 5% 32, 4% UNICHEM 82, 4% 11% 292, 38% 448, 448, 58% 169, 58% 22% Formulation - Domestic India Business International Business -US/Brazil International
Slide 12: Portfolio Scene: Therapy Dominance & Price Control
Portfolio SCENE Therapy Dominance & Price Control Therapy Therapy Major Revenue contributors: Chronic care accounts for ~58%* of Domestic Formulation Revenues Acute portfolio accounts for ~42%* of Domestic Formulation Revenues UNICHEM Portfolio Price Control Less than 20% of Domestic Portfol
Slide 13: Unichem in The Indian Pharma Market
Unichem in The Indian Pharma Market Rs. Crores Indian Pharmaceutical Market MAT Sept, 2016 % Growth Total Size of the Market 103820 10.9 Unichem Represented (Covered) Market 49777 10.6 Sr. No Top Companies in Covered Market UNICHEM 1 Sun Pharma + Ranbaxy 5397 11.2 2 Alkem 2789 10.4 3 Mankind 2433 17
Slide 14: Unichem's Therapy Gaps in the market
Unichem’s Therapy Gaps in the market MAT Sept’ 16 % of Total No. of Sub- % of Total Value Rs. Crs Value Segments No. of Segments Unichem Non-Represented Segments 54,043 52.1% 2,620 87.6% Unichem Represented Segments 49,777 47.9% 372 12.4% Total Market 103,820 100.0% 2,992 100.0% UNICHEM Unichem is
Slide 15: Domestic Formulations: Divisions
Domestic Formulations: Divisions Covered Covered Chronic Therapies Specialist (6) Anti-Hypertensive & Anti- Cardiologists, CPs & GPs CVS-Life Anxiolytics Anti-Hypertensive, Statins Cardiologists, Diabetologists, CVS-Star & Anti-Anginal CPs & FPs Cardio-Diabeto (4) UNICHEM CD Anti-Hypertensive, Stati
Slide 16: Domestic Formulations: Divisions
Domestic Formulations: Divisions Covered Covered Therapies Specialist Acute Anti-Infective & GPs, NGPs, CPs, (6) UVA Gastrointestinal, Anti- pediatrics, & Pyritic & related products Gynecologists, Extra Urban/Urban Anti-Infective, Multi GPs, CPs, ENT, Dentists, Anti- Vector Vitamins, NSAIDs, & & Ped
Slide 17: Domestic Business: Customer Coverage
Domestic Business: Customer Coverage Penetration 6 Chronic Verticals manned by ~1300 + CBAs 6 Acute verticals manned by ~1200 + CBAs UNICHEM Doctor Coverage: Over 100,000 doctors covered Chronic Coverage Cardiologists, Diabetologists, Neurologists, Psychiatrists, Nephrologists, Gynaecologists (Infer
Slide 18: Domestic Formulations Business
Domestic Formulations Business Therapeutic Segment-wise break-up Leadership position in key participated segments – Largest brand / brand extensions in excess of Rs170cr UNICHEM # 4 Brands in Top 300 brands Anti- – Losar H, Ampoxin, Losar & Unienzyme Diabetic, 4% Musculo- Others, 7% Skeletal, In 18
Slide 19: Brand Building – Focus Brand Portfolio
Brand Building – Focus Brand Portfolio # Top 10 Brands contributes ~45% of the company’s domestic revenues – Losar H, Ampoxin, Losar, Unienzyme, Vizylac, Trika, Serta, Unistar, Arkamin and Telsar – # UNICHEM Top 50 Brands contributes ~80% of the company’s domestic revenues 4 - Rs. 50+ crore brands –
Slide 20: Top Product Groups Performance
Top 10 Product Groups Performance Rs. Crores % MAT Sept, % % Market Contribution 2016 Growth Share to Revenue Total Revenue 935 13.5 0.9 100.0 Losar Group 184 11.5 36.7 19.7 UNICHEM Ampoxin Group 76 1.2 45.8 8.1 Unienzyme 58 -5.5 15.4 6.2 Telsar Group 55 14.4 3.0 5.9 Olsar Group 37 17.3 5.4 4.0 Vizy
Slide 21: AWACS Data – MAT Sept, 2016
AWACS Data – MAT Sept, 2016 Representative Market Unichem Laboratories Therapy Market Segment Size (Rs. Crs) % Growth Sales (Rs. Crs) % Share % Growth Cardiac Care 8078 9.0 394 4.9 13.6 UNICHEM Anti-Infectives 11364 7.1 157 1.4 8.9 Neuro-Psychiatry 3513 12.1 127 3.6 18.8 Gastro Intestinal 6231 10.8
Slide 22: Globally Accredited State of the art Manufacturing Facilities
Globally Accredited State of the art Manufacturing Facilities Formulations – Baddi (HP) – essentially catering to domestic and developing regulated market Regulatory approvals – MHRA & ANVISA – Ghaziabad (UP) – for catering to regulated and developing regulated markets Regulatory approvals – USFDA (
Slide 23: Domestic Market – Management Focus
Domestic Market – Management Focus Domestic Market – Enhancing relationship with customers and Focus on Field Productivity – Brand building through ‘Focused Brand approach’ – Increased coverage and compliance UNICHEM – Entry into unrepresented / uncovered market segments – Optimal use of Manufacturi
Slide 24: Agenda
Agenda 1. Profile & History 2. Growth & Profitability UNICHEM 3. Business Operations – Domestic Operations – International Operations – API Operations 4. Research & Development 5. Management & Governance 6. Financials ©Unichem Laboratories Ltd 24
Slide 25: International Formulation Business
International Formulation Business Company has made significant investments in building infrastructure which includes new R&D centre and API plants for captive consumption to support international business Company is in process of further augmenting it API & Formulation capacities UNICHEM for expect
Slide 26: International Business – Formulations: ACASIA
International Business – Formulations ACASIA : Emerging Global Markets Geographic Mix – FY 16 Geographic Mix – H1 FY 17 Latin America, 7% Russia/CIS, 4% UNICHEM Africa, 43% Latin America, 10% Russia/CIS, 15% Africa, 42% Asia Pac, 46% Asia Pac, 33% ©Unichem Laboratories Ltd 26
Slide 27: International Business – Formulations: Regulated Markets
International Business – Formulations Regulated Markets Geographic Mix – FY 16 Geographic Mix – H1 FY 17 US / Canada, 65% UNICHEM Europe, 35% US / Canada, Europe, 32% 68% ©Unichem Laboratories Ltd 27
Slide 28: Regulated Markets - USA and LATAM
International Business – Formulations Regulated Markets - USA and LATAM UNITED 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 UNICHEM capability
Slide 29: Regulated Markets - Europe
International Business – Formulations Regulated Markets EUROPE European presence through 100% subsidiary - Niche Generics, UK The subsidiary sells these regulatory dossiers and supply agreements to third party companies UNICHEM Total # 37 products {(Own:# 34; In-Licensing: # 3) (Direct marketi
Slide 30: Agenda
Agenda 1. Profile & History 2. Growth & Profitability UNICHEM 3. Business Operations – Domestic Operations – International Operations – API Operations 4. Research & Development 5. Management & Governance 6. Financials ©Unichem Laboratories Ltd 30
Slide 31: API - World class Manufacturing Facilities and Infrastructure
API-World class Manufacturing Facilities and Infrastructure Roha (Maharashtra) – Multiple plants Regulatory Approvals – USFDA (Re-Certified recently), EDQM, PMDA, EU GMP, KFDA, ISO, OHSAS UNICHEM Pithampur (MP) – Multiple plants Regulatory Approvals – USFDA (Re-Certified recently), EUGMP, COFEPRIS M
Slide 32: API - Total Revenue (Excluding Captive)
API - Total Revenue (Excluding Captive) F Y 2016 F Y H1 2017 Revenue Break-up by Segment Revenue Break-up by Segment Domestic Domestic , 22% , 15% Exports, 78% UNICHEM Export Revenue Break-up by Region Exports, 85% Export Revenue Break-up by Region USA / USA / Canada, Canada, ROW, 5% 9% 17% ROW, 31%
Slide 33: Agenda
Agenda 1. Profile & History 2. Growth & Profitability UNICHEM 3. Business Operations – Domestic Operations – International Operations – API Operations 4. Research & Development 5. Management & Governance 6. Financials ©Unichem Laboratories Ltd 33
Slide 34: R&D Focus
Focus Unichem has a two fold R&D strategy – Development of patent non-infringing processes for APIs – Development of Novel Drug Delivery Systems (NDDS) Chemical R&D – Centre of Excellence at Goa offering the most conducive environment for value added research – Developed novel, innovative & efficien
Slide 35: Agenda
Agenda 1. Profile & History 2. Growth & Profitability UNICHEM 3. Business Operations – Domestic Operations – International Operations – API Operations 4. Research & Development 5. Management & Governance 6. Financials ©Unichem Laboratories Ltd 35
Slide 36: Management & Governance
Management & Governance Board of Directors (Dr. P A Mody; Mr. Prafull Anubhai; Mr. Ramdas M Gandhi; Mr. Prafull D Sheth; Mr. Anand Mahajan and Dr. (Ms) Kinnera Murthy) Shareholders Audit Committee Compensation Grievance Committee Committee UNICHEM Chairman & Managing Director Divisional Heads Chairm
Slide 37: Agenda
Agenda 1. Profile & History 2. Growth & Profitability UNICHEM 3. Business Operations – Domestic Operations – International Operations – API Operations 4. Research & Development 5. Management & Governance 6. Financials ©Unichem Laboratories Ltd 37
Slide 38: Standalone Financials (INR Lakhs)
Standalone Financials (INR Lakhs) STAND ALONE FINANCIALS - IND-AS (INR Lakhs) Three months Three months Six Month Six Month Particulars ended Sept ended Sept % Growth ended Sept ended Sept % Growth 30, 2016 30, 2015 30, 2016 30, 2015 Sales Income from Operations: Domestic Operations Formulations 22,
Slide 39: Thank You
Thank You ©Unichem Laboratories Ltd
Unichem Laboratories — H1 FY2017 Earnings Presentation on 6ix