Gland Pharma Ltd. · NSE:GLAND
Gland Pharma — Q4 FY24 Earnings Presentation
31 slides from Gland Pharma's earnings presentation, May 22, 2024
Slide 1: Financial Results Q4'FY24 & FY24
GLAND PHARMA LIMITED Gland Pharma Limited Financial Results Q4’FY24 & FY24 22nd May 2024 Cemcitibii lajectiM ■
Slide 2: Safe Harbor Statement
Safe Harbor Statement The Presentation is to provide the general background information about the Company’s activities as at the date of the Presentation. The information contained herein is for general information purposes only and based on estimates and should not be considered as a recommendation
Slide 3: Group Financial Highlights (1/4)
Group Financial Highlights (1/4) Revenue from Operations Gross Profit (1) / Gross Profit Margin (2) (INR Mn) (INR Mn / %) 56,647 34,916 36,246 62% 19,392 -1% 54% 15,452 15,375 9,459 9,381 7,850 4,202 61% 61% 54% Q4 FY23 Q3 FY24 Q4 FY24 FY23 FY24 Q4 FY23 Q3 FY24 Q4 FY24 FY23 FY24 EBITDA (3) / EBITDA
Slide 4: Gland Financial Highlights (Ex-Cenexi) (2/4)
Gland Financial Highlights (Ex-Cenexi) (2/4) Revenue from Operations EBITDA (1) / EBITDA Margin (2) (INR Mn / %) (INR Mn) 14,142 41,769 36,246 10,248 34% 50% 28% 3,727 4,306 11,013 11,737 7,850 1,684 37% 34% 21% Q4 FY23 Q3 FY24 Q4 FY24 FY23 FY24 Q4 FY23 Q3 FY24 Q4 FY24 FY23 FY24 PBT / PAT / PAT Marg
Slide 5: Group Financial Highlights (3/4)
Group Financial Highlights (3/4) Net Worth (1) Cash and Bank Balances / Net Cash (2) (INR Mn) (INR Mn) 79,587 87,238 37,707 37,669 24,953 21,756 Mar'23 Mar'24 Mar'23 Mar'24 Total Cash Net Cash Net Working Capital (3) Capital Expenditure (INR Mn) (INR Mn) 24,010 24,074 3,975 2,230 Mar'23 Mar'24 FY23
Slide 6: Group Financial Highlights (4/4)
Group Financial Highlights (4/4) Asset Turnover Ratio (1)(2) ROCE (3) / RONW (4) (%) 2.8 18% 2.2 19% 1.5 11% 9% 11% 0.6 0.5 0.6 9% Total asset turnover Fixed asset turnover FY22 FY23 FY24 FY22 FY23 FY24 RoCE RoNW Cash Flow from Operations Cash Conversion Cycle (CCC) (5)(6) (INR Mn) (# of Days) 9,968
Slide 7: P&L Highlights
P&L Highlights Group P&L INR Mn Particulars Q4 FY24 Q4 FY23 Y-o-Y FY24 FY23 YoY Q3 FY24 Q-o-Q Revenue from operations 15,375 7,850 96% 56,647 36,246 56% 15,452 (0.5%) Other Income 421 389 8% 1,702 2,405 (29%) 374 13% Total Income 15,796 8,239 92% 58,349 38,651 51% 15,826 (0.2%) Gross Margin(1) 9,381
Slide 8: Base Business (Ex-Cenexi) Performance
Base Business (Ex-Cenexi) Performance Q4FY24 Highlights • Revenue: INR 11,737 million, driven by volume growth in key injectables and new product launches. • Gross margin: Improved to 56% due to better product mix. • EBITDA: INR 4,306 million, benefiting from high operating leverage. • R&D expenses:
Slide 9: Cenexi Performance
Cenexi Performance Q4FY24 Highlights • Revenue: INR 3,637 million / Euro 40 million • Gross margin: 77% • EBITDA: INR -720 million / Euro -8 million FY24 (11 months) Highlights • Revenue: INR 14,878 million / Euro 166 million • Gross margin: 76% • EBITDA: INR -812 million / Euro -9 million Key Updat
Slide 10: Identified the critical deliverables necessary to drive strong performance at Cenexi
Identified the critical deliverables necessary to drive strong performance at Cenexi Short term priorities Mid-term Priorities Long-term priorities 0-6 months 6-12 months 12-24 months • Capability buildout: Fill critical gaps in • Migrate to a Leaner Centralized Corporate • New Capacity play-out: In
Slide 11: The groundwork done so far at Cenexi is positively impacting business and operations
The groundwork done so far at Cenexi is positively impacting business and operations • Identified bottlenecks, production losses, and high-cost activities. © Operations, • Employing real-time production data, OEE (Overall Equipment Effectiveness) and yield Engineering and analysis to pinpoint proble
Slide 12: Segment wise revenue break-up
Segment wise revenue break-up IGLAND]
Slide 13: US Market
US Market Group Revenue Contribution US Market (Ex-Cenexi) ▪ Revenue: FY24: Rs. 30,375 Mn Q4 FY24: Rs. 8,784 Mn YoY Change: 27% YoY Change: 83% Launched 5 molecules in the market, including Carboprost, Ketamine, Ganirelix Acetate and Paclitaxel. ▪ New launches(1): Q4 FY24 : 9 Product SKUs (5 Molecul
Slide 14: Europe, Other Core Markets (Canada, Australia and New Zealand)
Europe, Other Core Markets (Canada, Australia and New Zealand) Europe Other Core Markets (Canada, Australia and New Zealand) Group Revenue Contribution Group Revenue Contribution FY24: Rs. 10,648 Mn Q4 FY24: Rs. 2,685 Mn FY24: Rs. 1,575 Mn Q4 FY24: Rs. 578 Mn oo YoY Change: 469% YoY Change: 727% YoY
Slide 15: Rest of the World Markets
Rest of the World Markets Group Revenue Contribution Rest of the World Markets (Ex-Cenexi) ▪ The Rest of the World markets contributed 14% of our FY24: Rs. 11,239 Mn Q4 FY24: Rs. 2,802 Mn YoY Change: 63% YoY Change: 64% revenue in Q4 FY24, compared to 22% in Q4 FY23. 22% 18% ▪ We registered Meropene
Slide 16: India (Domestic Market)
India (Domestic Market) Group Revenue Contribution India - Domestic Market (Ex-Cenexi) FY24: Rs. 2,810 Mn Q4 FY24: Rs. 526 Mn oo ▪ The Indian market contributed 4% to our revenue in Q4 YoY Change: 12% YoY Change: -19% 8% 3% FY24 and experienced a 19% decrease compared to the corresponding period in
Slide 17: About Gland Pharma
About Gland Pharma IGLAND]
Slide 18: Snapshot
Snapshot 8 Manufacturing Extensive and Vertically Integrated Facilities – Greater Control Over 4 Finished Formulation Manufacturing Processes Injectables Manufacturing Capabilities and 4 API No Warning Letters 349 ANDA Filings in Consistent Compliance Track Record with from USFDA Since the US (1) (2
Slide 19: Our Journey
Our Journey Received ANDA approval for Enoxaparin Sodium Injection USP Received ANDA approval for first Ophthalmic product Launched Heparin USFDA and EU USFDA approval for facilities First OTC launch in Launch of Enoxaparin Sodium Sodium Injection approval for at Visakhapatnam, US market for Injecti
Slide 20: 8 Facilities
Business Overview Extensive and Vertically Integrated Manufacturing Capabilities With Consistent Compliance Track Record API facilities provide in-house manufacturing 4 Finished 4 API Facilities capabilities for critical APIs, thereby 8 Facilities Formulation Facilities & 11,000 kg / year, • Control
Slide 21: Business Overview (Cont'd)
Business Overview (Cont’d) Diversified B2B-led Model Across Markets Complemented by B2C Model in India • Operating in 60+ countries as of March 31, 2024 • Successful track record of operating B2B model with leading companies, complemented by a B2C model in home market of India leveraging brand stren
Slide 22: Business Overview (Cont'd)
Business Overview (Cont’d) Extensive Portfolio of Complex Products Internal R&D & Regulatory Capabilities Present in sterile injectables, oncology and ophthalmics, and focus Centralized R&D Laboratory located at Dundigal, Hyderabad on complex injectables, NCE-1s, First-to-File products and facility,
Slide 23: Key Strengths
Key Strengths 6 1 Experienced and Qualified Injectables: One of the Fastest Management Team Growing and Largest Segment 5 2 Track Record of Growth and Extensive and Vertically Profitability from a Diversified IGLAND] Integrated Injectables Revenue Base with Healthy Manufacturing Capabilities Cash Fl
Slide 24: Consistent Regulatory Compliance Track Record
Consistent Regulatory Compliance Track Record Highlights No warning letters All facilities Certified WHO GMP 3 ISO certifications as from USFDA (whether GMP compliant by certifications from the of March 31, 2024 (1) as a result of facility USFDA, and certain Drugs Control inspection or otherwise) fa
Slide 25: Diversified Business Model with Focus on Growth & Stability
Diversified Business Model with Focus on Growth & Stability Diversified B2B-led Model Across Markets, Complemented by a Targeted B2C Model in India B2B – IP Led B2B Tech Transfer B2B CMO B2C Own Filing Partner Filing • Out-license to marketing partners • Co-development with Partner • Fill and finish
Slide 26: Complex Product Portfolio Supported by Strong R&D
Complex Product Portfolio Supported by Strong R&D Right Capability Matrix in Products and Delivery Systems Expertise in Present in: Focused on: Expanding Expanding in new Key products synthesis of ▪ Oncology capabilities in: delivery systems: include: ▪ Complex complex drug ▪ Ophthalmics and injecta
Slide 27: Global Regulatory Capabilities
Global Regulatory Capabilities Product Development Capabilities Supported by Regulatory Expertise and Track Record in Filing and Approval of Large Number of Product Registrations Established Expertise Successful track record and pipeline Geographic Breakdown (Group revenue : FY24) Broad Range of Fil
Slide 28: Future growth drivers
Future growth drivers Focus on achieving a diverse product mix offering products at various stages of their lifecycle as well as a robust product pipeline Working towards building bio- Expanding development and Geographic expansion in to similar / biologics CDMO manufacturing capabilities in emergin
Slide 29: Group Financial Performance
Group Financial Performance Revenue from Operations EBITDA (1) / EBITDA Margin (2) (INR Mn) (INR Mn / %) FY 20 - 24 CAGR: 9% 56,647 34% 44,007 38% 24% 36,246 36% 15,102 28% 34,629 13,022 13,331 26,332 9,555 10,248 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 PBT / PAT / PAT Margin (3) R&D Expen
Slide 30: Group Financial Performance (Cont'd)
Group Financial Performance (Cont’d) Net Worth (1) Cash and Bank Balances / Net Cash (2) (INR Mn) (INR Mn) 24% CAGR 34,483 34,444 37,707 37,669 ■■I I 30,058 30,017 87,238 24,953 79,587 I 71,576 21,756 Illi 59,032 ■ 13,252 13,202 36,462 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 Cash and cash
Slide 31: Gland Pharma
GLAND Registered Office Corporate Office: Gland Pharma Limited Gland Pharma Limited Survey No. 143-148, 150 & 151 Plot No. 11 & 84, TSIIC Phase: IV Near Gandimaisamma 'X' Roads Pashamylaram (V), Patancheru (M), D.P. Pally, Dundigal Gandimaisamma Mandal Sangareddy District Medchal-Malkajgiri District