Sun Pharmaceutical Industries Limited · NSE:SUNPHARMA
Sun Pharmaceutical Industries — Investor Presentation (January 2023)
55 slides from Sun Pharmaceutical Industries's investor presentation, Jan 16, 2023
Slide 1: Exchange filing cover letter
Sun Pharmaceutical Industries Limited SUN HOUSE, CTS No. 201 B/1, Western Express Highway, Goregaon (E), Mumbai 400063, India Tel.: (91-22) 4324 4324 Fax.: (91-22) 4324 4343 CIN: L24230GJ1993PLC019050 www.sunpharma.com 16 January 2023. National Stock Exchange of India Limited, BSE Limited, Exchange
Slide 2: Creating Lasting Value - Investor Presentation December 2022
Creating Lasting Value Investor Presentation - December 2022 NSE:SUNPHARMA | BSE:524715 | Bloomberg:SUNP IN | Reuters:SUN.BO WWW.SUNPHARMA.COM
Slide 3: Disclaimer
Disclaimer Except for the historical information contained herein, statements in this presentation and the subsequent discussions, which include words or phrases such as “will”, “aim”, “will likely result”, “would”, “believe”, “may”, “expect”, “will continue”, “anticipate”, “estimate”, “intend”, “pl
Slide 4: Sun Pharma
Sun Pharma 1 At a Glance 2 Our Global Specialty Portfolio 3 Revenue Composition & Company History 4 Business Operations, R&D & Manufacturing 5 Corporate Governance 6 Key Financials 7 Focus Areas 3
Slide 5: Sun Pharma at a glance
Sun Pharma at a glance 4th Largest specialty generic company globally* Market Presence Presence in more than 100 countries Addressable Segments Specialty products, branded generics, generics & APIs Specialty Scaling up Global Specialty portfolio US Ranked 9th in US generics market## India Largest ph
Slide 6: Sun Pharma today
Sun Pharma today US Formulations India Branded Generics 9th largest generics company in US* with a strong No.1 ranked with 12 classes of doctors pipeline (92 ANDAs & 13 NDAs awaiting approval) Leading position in high growth chronic therapies Presence in Specialty branded & generics segments
Slide 7: Driving sustainable long term growth
Driving sustainable long term growth • Enhance share of specialty business • Optimize operational costs • Achieve differentiation by focusing on technically complex products • Vertically integrated operations • Focus on key markets to achieve critical mass • Speed to market • Ensure sustained compli
Slide 8: Global specialty portfolio
Global specialty portfolio • Treatment of adults with moderate-to-severe plaque psoriasis who are candidates for systemic therapy or phototherapy • Launch US-Oct’18, Australia- Dec’18, Europe- (by Almirall) from Dec’ 18, Japan- Sept’20, Canada- Oct’21 • Long term clinical data shows that the signifi
Slide 9: Global specialty portfolio
Global specialty portfolio • Treatment of adult patients with locally advanced basal cell carcinoma (BCC) that has recurred following surgery or radiation therapy, or those who are not candidates for surgery or radiation therapy. • Currently marketed in US, Canada, Germany, France, Denmark, Switzerl
Slide 10: Specialty pipeline
Specialty pipeline Route of Mechanism of Molecule/Asset Indication Pre-clinical Phase-1 Phase-2 Phase-3 Registration Approved Administration Action Ilumya Psoriatic IL-23 Injection (tildrakizumab) Arthritis Antagonist Psoriasis, Selective SIPR1 SCD-044 Atopic Oral Agonist Dermatitis Treatment Liposo
Slide 11: Diversified revenue base
Diversified revenue base Emerging Markets Rest of World 18% (RoW)# 14% API & Others 5% FY22 Sales India Branded Rs 384 Bn Formulations 33% US Formulations 30% # Includes Western Europe, Canada, Japan, Australia & New Zealand, Israel and other markets. 10
Slide 12: Impressive track record of growth
Impressive track record of growth (All Figures in Rs Bn) CAGR for FY07-FY22 384 101 104 77 70 303 Adjusted Sales 33 EBITDA 27 Net Profit 80 CAGR CAGR CAGR 21% 7 20% 8 16% 21 FY07 FY12 FY17 FY22 FY07 FY12 FY17 FY22 FY07 FY12 FY17 FY22 90 75 32 29 71 Adjusted 34 EPS Operating Free Cash 11 Cash Flow Fl
Slide 13: Strong profitability and return ratios
Strong profitability and return ratios Adjusted Net Profit Gross Margin # EBITDA Margin Margin 26.9% 25.3% 73.9% 73.1% 20.0% 72.6% 71.4% 21.7% 21.3% 17.8% 13.5% 12.5% FY19 FY20 FY21 FY22 FY19 FY20 FY21 FY22 FY19 FY20 FY21 FY22 ROCE ROE Market Cap (USD Bn) 29.5 16.4% 15.0% 13.5% 12.5% 11.8% 19.3 11.0
Slide 14: Best in class profitability
Best in class profitability Gross Margin EBITDA Margin Adjusted Net Profit Margin 74% 73% 73% 71% 27% 65% 25% 65% 64% 63% 22% 22% 21% 20% 19% 18% 20% 18% 14% 13% 14% 13% 11% 12% FY19 FY20 FY21 FY22 FY19 FY20 FY21 FY22 FY19 FY20 FY21 FY22 Gross margin= (Net Sales – Material Cost) / Net Sales * 100 Su
Slide 15: Creating a global company: Timeline
Creating a global company: Timeline Agreement with Acquired Acquired Dusa Merck for in- Acquired InSite Acquired Pola In-lincesed Began with 5 Biosintez in licensing Vision ophthalmic Pharma in Japan Winlevi® products Russia Tildrakizumab portfolio Year 1983 1994 2010 2012 2013 2014 2015 2016 2018 2
Slide 16: Key deals & rationale
Key deals & rationale Year Deals Country Rationale Acquired UractivTM Portfolio from Fiterman Expand non-prescription product basket in 2022 Romania Pharma Romania and neighbouring markets Japan, Australia, New Zealand, 2022 Expanded Winlevi® In-licensing agreement Increasing across to new markets f
Slide 17: Key deals & rationale
Key deals & rationale Year Deals Country Rationale Acquired global rights for Cequa & 2016 Global Enhances specialty pipeline Odomzo Local manufacturing capability to enhance presence in 2016 Acquired Biosintez Russia Russian market Out-licensed Tildrakizumab to 2016 Europe Access to European market
Slide 18: US Formulations
US Formulations 30% of FY22 Revenues 17
Slide 19: US highlights
US highlights 9th Largest Pharma Company in the US Generics Market* Dermatology Segment Ranked 2nd by prescriptions## in the US dermatology market Wide basket of 609 ANDAs & 67 NDAs filed and 517 ANDAs & 54 Comprehensive Portfolio** NDAs approved across multiple therapies Robust Pipeline** 92 ANDAs
Slide 20: US formulations: revenue progression
US formulations: revenue progression Sales in Rs Bn 10 year CAGR - 13% 137 135 138 114 107 105 98 101 87 62 35 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 19
Slide 21: Milestones in US formulations
Milestones in US formulations FY23 • In-licensed SEZABY (phenobarbital sodium injection) for US market. FY22 • Launched Winlevi® (clascoterone cream 1%) in the US • Presented long term clinical data for Ilumya & other clinical insights for Odomzo & Levulan at American Academy of Dermatology Conferen
Slide 22: ANDA & NDA pipeline
ANDA & NDA pipeline ANDAs Filed and Approved (Cumulative) NDA Filed and Approved (Cumulative) 595 605 609 571 581 561 501 512 517 483 453 422 67 67 64 59 60 55 55 54 54 52 42 39 FY18 FY19 FY20 FY21 FY22 Q2FY23 FY18 FY19 FY20 FY21 FY22 Q2FY23 Cumulative Products Filed Cumulative Products Filed Cumula
Slide 23: India Branded Formulations
India Branded Formulations 33% of FY22 Revenues 22
Slide 24: India highlights
India highlights Largest Pharma Company in India Market Position** No. 1 ranked with 8.6% market share Prescription Ranking## No. 1 ranked by prescriptions with 12 different classes of doctors Chronic Segment Market leader in the chronic segment Acute Segment Strong positioning in the acute segment
Slide 25: Largest pharma company in India
Largest pharma company in India Market Share Formulation sales in India as of 12 months ended Sept 2022 (Rs mn) 150,327 Sun Pharma 8.6% 109,245 Abbott + Abbott HC + Novo 6.2% 86,846 Mankind 4.9% 84,924 Cipla 4.8% 69,305 Zydus 3.9% 63,176 Lupin 3.6% 60,616 Alkem + Cachet + Indchemie 3.5% 59,354 Torre
Slide 26: India: revenue progression
India: revenue progression Sales in Rs Bn Therapeutic breadth** 10 year CAGR -16% Others 128 Opthalmology 2% 4% Cardiology 17% One-time impact of Gynaecology, 4% change in 103 Vitamins / distribution 97 Minerals / Impact of Nutrients, 5% Ranbaxy Acquisition 80 Respiratory 5% 77 71 73 Market Share Ne
Slide 27: Leadership across therapeutic areas
Leadership across therapeutic areas* Number 1 Ranking with 12 Doctor Categories* Prescription Ranking Specialist June ‘18 June ‘19 June ‘20 June ‘21 June ‘22 Psychiatrists 1 1 1 1 1 Neurologists 1 1 1 1 1 Cardiologists 1 1 1 1 1 Orthopaedic 1 1 1 1 1 Gastroenterologists 1 1 1 1 1 Diabetologists 1 1
Slide 28: Best-in-class field force productivity
Best-in-class field force productivity Sales Per Medical Representative (Rs mn) 9,291 9,550 10,963 9,707 11,149 • Well trained and scientifically Impact of oriented sales representatives sales force 11.4 team with strong performance 10.0 expansion track record 9.4 8.8 8.6 • Highest field force produ
Slide 29: Emerging Markets
Emerging Markets 18% of FY22 Revenues 28
Slide 30: Emerging Markets highlights
Emerging Markets highlights Amongst the leading Indian Companies in Emerging Markets Global footprint Presence in about 80 markets Romania, Russia, South Africa, Brazil, Mexico and complementary Focus Markets & affiliated markets Product Portfolio Extensive basket of branded products Customer Focus
Slide 31: Rest of World
Rest of World (Western Europe, Canada, Japan, ANZ, Israel & other markets) 14% of FY22 Revenues 30
Slide 32: Rest of World highlights
Rest of World highlights Amongst the leading Indian Companies Market Presence • Western Europe, Canada, A&NZ, Japan, Israel and others Product Portfolio • Expanding basket including specialty, hospital & retail products • Development and commercialization of complex generics and Focus differentiated
Slide 33: Global Consumer Healthcare
Global Consumer Healthcare 32
Slide 34: Global Consumer Healthcare highlights
Global Consumer Healthcare highlights An attractive opportunity India Amongst the top 10 consumer healthcare companies Global Presence Presence in over 20+ countries Romania, South Africa, Nigeria, Myanmar, Ukraine, Poland, Focus Markets Thailand, Belarus, Kazakhstan, Nepal, Morocco, UAE and Oman St
Slide 35: Active Pharmaceutical Ingredients (API)
Active Pharmaceutical Ingredients (API) 5% of FY22 Revenues 34
Slide 36: API highlights
API highlights Backward Integration – Strategic Importance Backward integration provides cost competitiveness and supply Strategic Importance reliability Customers Large generic and innovator companies Product Portfolio Approximately 370 APIs Pipeline Development 20-30 APIs scaled up annually Regula
Slide 37: Research & Development
9 SUN PHARMA Research & Development
Slide 38: Research & Development
Research & Development Cumulative R&D spend of ~Rs 225 Bn to date R&D Spend R&D spend at 5.8% of sales for FY22 Finished dosage development, biological support, chemistry and Capabilities new drug development Approx. 2,700 headcount globally with R&D capabilities across Organization dosage forms IPR
Slide 39: R&D Investments
R&D Investments R&D investments Filings and Approvals 8.6% 6.9% 6.1% 6.5% 5.8% ANDA NDA/BLA DMF/CEP Patents** 609 67 489 2,412 22.5 22.2 21.5 19.8 19.8 517 54 376 1,604 FY18 FY19 FY20 FY21 FY22 Filed Approved Filed Approved Filed Approved Filed Granted ** Excludes expired/abandoned patents R&D inves
Slide 40: Global Manufacturing
9 SUN PHARMA Global Manufacturing
Slide 41: Global Manufacturing highlights
Global Manufacturing highlights World Class manufacturing infrastructure 43 manufacturing facilities across India, the Americas, Asia, Africa, Extensive Global Footprint Australia and Europe Vertically integrated network across six continents enabling high Integrated Network quality, low cost and a
Slide 42: Manufacturing Facilities
Manufacturing Facilities 43 manufacturing sites • Formulation • India : 15, US : 3 • Canada, Japan, Hungary, Israel, Bangladesh, South Africa, Malaysia, Romania, Egypt, Nigeria and Russia : 1 each • Capacities available for a variety of finished dosages • API • India : 9, Australia : 2, Israel : 1,
Slide 43: Corporate Governance
Corporate Governance Our philosophy on corporate governance envisages working towards high levels of transparency, accountability and consistent value systems across all facets of operations Lead Independent Director Independent Director Dr. Pawan Goenka Gautam B. Doshi Former MD & CEO of Profession
Slide 44: Key Financials
9 SUN PHARMA Key Financials 43
Slide 45: Summary Financials
Summary Financials Market Capitalisation Rs 2,403 Bn / US$ 29 Bn (as of 30th Dec 2022) ( All Figures in Rs mn ) FY18 YoY FY19 ** YoY FY20 YoY FY21 YoY FY22 YoY P&L Summary Sales 260,659 -14% 286,863 10% 323,252 13% 332,331 3% 384,264 16% Gross Profit 186,413 -16% 208,173 12% 230,947 11% 245,430 6% 2
Slide 46: Sales Break-up
Sales Break-up In Rs Bn Sales 261 287 323 332 384 21 55 21 20 45 49 18 67 15 35 30 55 58 54 48 114 105 101 87 107 128 97 103 80 73 FY18 FY19 FY20 FY21 FY22 India Formulations US Formulations Emerging Markets Rest of World API+Others 45
Slide 47: EBITDA Trend
EBITDA Trend In Rs Bn Sales 261 287 323 332 384 % of Sales 28.5% 27.4% 28.6% 26.1% 26.9% 20.6% 20.8% 19.7% 20.6% 19.0% 28.5% 28.0% 31.0% 30.8% 31.8% 25.3% 26.9% 21.2% 21.7% 21.3% FY18 FY19 FY20 FY21 FY22 EBITDA Other Expenditure Personnel Costs Material Costs 46
Slide 48: Cash Flow & Debt
Cash Flow & Debt Net Cash From Operating Activities (Rs Bn) Free Cash Flow (Rs Bn) 89.8 74.9 65.5 61.7 50.1 50.0 39.1 22.0 19.5 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 -10.2 Gross Debt (Rs Bn) Net Cash (Excluding Debt) (Rs Bn) 149.2 103.6 104.8 82.2 103.0 69.5 35.2 45.0 34.7 9.3 FY18 FY19
Slide 49: Financial Ratios
Financial Ratios FY18 FY19 ** FY20 FY21 FY22 Growth (%) Sales (13.9) 10.1 12.7 2.8 15.6 Gross Profit (15.8) 11.7 10.9 6.3 14.4 EBITDA (44.4) 12.5 10.8 21.5 22.5 Net Profit (69.9) 27.2 41.3 (22.9) 12.7 # # # Net Profit (Adjusted) (52.6) 17.5 3.8 47.4 29.3 # # Margins (%) Gross Margin 71.5 72.6 71.4 7
Slide 50: Key Financials Q2 & H1 FY23
Key Financials Q2 & H1 FY23 ( All Figures in Rs mn ) Q2 FY23 Q2 FY22 CHANGE H1FY23 H1FY22 CHANGE Gross Sales 108,092 95,567 13.1% 214,532 192,262 11.6% Revenue from operation 109,523 96,259 13.8% 217,140 193,447 12.2% Gross Profit 81,011 70,349 15.2% 158,449 140,549 12.7% Gross Margin 74.9% 73.6% 73
Slide 51: Sales Breakup Q2 & H1 FY23
Sales Breakup Q2 & H1 FY23 ( All Figures in Rs mn ) Q2 FY23 Q2 FY22 CHANGE H1FY23 H1FY22 CHANGE Formulation India 34,600 31,878 8.5% 68,471 64,962 5.4% US 32,913 26,773 22.9% 65,350 54,773 19.3% Emerging Markets 20,704 18,005 15.0% 39,615 34,058 16.3% ROW # 14,441 13,926 3.7% 29,119 27,606 5.5% Sub-
Slide 52: Sun Pharma - Focus Areas
Sun Pharma - Focus Areas • Enhance share of specialty/branded business US Business • Continue to focus on complex generics and high entry barrier segments • Ensure broad product offering to customers across multiple dosage forms • Focus on productivity enhancement India • Maintain leadership positio
Slide 53: Sun Pharma - Focus Areas
Sun Pharma - Focus Areas • Unwavering focus on sustainability, built on a legacy rooted in caring for people, communities and the planet. Sustainability • Committed to Governance, Community upliftment, Access to affordable healthcare & Environment conservation • Focus on developing complex products
Slide 54: Sun Pharma at a glance
Sun Pharma at a glance 4th Largest specialty generic company globally* Market Presence Presence in more than 100 countries Addressable Segments Specialty products, branded generics, generics & APIs Specialty Scaling up Global Specialty portfolio US Ranked 9th in US generics market## India Largest ph
Slide 55: Thank You
Thank You! For more information please contact Investors Thank You Dr. Abhishek Sharma Tel : +91 22 4324 4324, Xtn 2929 Tel Direct +91 22 4324 2929 abhi.sharma@sunpharma.com Corporate Address SUN HOUSE, CTS No. 201 B/1, Western Express Highway, Goregaon (E), Mumbai 400063 © 2017 Sun Pharmaceutical I
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