Laurus Labs Ltd. · NSE:LAURUSLABS
Laurus Labs — Q3 FY2019 Earnings Presentation
24 slides from Laurus Labs's earnings presentation, Jan 31, 2019
Slide 1: Q3 & 9M FY19 Results Presentation
LAURUS LABS LIMITED Q3 & 9M FY19 RESULTS PRESENTATION January 31, 2019 BSE: 540222 NSE : LAURUSLABS
Slide 2: Disclaimer
Disclaimer Certain statements in this document may be forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties like regulatory changes, local political or economic developments and many other factors that could cause our actual results to differ mate
Slide 3: Business Snapshot
Business Snapshot Overview • Development, manufacture • Developing and manufacturing • Contract development and • Sale and manufacture of and sale of active oral solid formulations manufacturing services for specialty ingredients for use in pharmaceutical ingredients global pharmaceutical nutraceuti
Slide 4: Strategy in Motion
Strategy in Motion Hep C, Oncology & FDFs ARV Other APIs Synthesis Ingredients • Significant increase in HIV • Leadership in select • Leverage API capabilities • Focus on supply of key • Leverage process patient population with Oncology API. Launching backed up by backward starting materials and che
Slide 5: Formulations Business – Global Approach
Formulations Business – Global Approach ▪ Extensive Manufacturing capabilities across markets with commitment to maintain highest quality standards – “One Quality Standard for All Markets” ▪ Current FDF Manufacturing Capacity - 5 bn tab/caps with total Capex investment of ~INR 4,280 mn ▪ Tenofovir (
Slide 6: Formulations Strategy for Developed Markets
Formulations Strategy for Developed Markets US, EU, Canada remains our key focus markets by focusing on the combination of commercialised high Overview volume products, first to file, Para IV opportunity based on IP to address short, medium and long term strategy. Target Markets USA, Europe and Cana
Slide 7: Formulations Strategy for Emerging Markets
Formulations Strategy for Emerging Markets Emerging Markets of Africa & ARV Tender business remains the forefront of our Formulations Overview Strategy. Integrated approach is key to success and Laurus is well positioned to garner this opportunity Emerging Markets – Global fund tenders, WHO Tender,
Slide 8: Synthesis Business Strategy
Synthesis Business Strategy • State-of-the-art cGMP facilities to manufacture NCEs 1541 1612 • Can support early stage, late stage and commercial launch supply requirements 1075 Overview • Working with Global Innovator Companies 761 • Around 50% of the business revenue comes from ASPEN & the rest fr
Slide 9: Transformation of Business Model
Transformation of Business Model • Crossed INR 20 billion of revenue • Commenced commercial operations from Unit 4 • Incorporated a subsidiary in Germany • Unit 2-Formulations EIR received from USFDA • Investment of • Incorporated First • Launched maiden FDF product INR 600 mn by Subsidiary in USA,
Slide 10: Strong R&D Capabilities
Strong R&D Capabilities ◼ “Research-first” approach – Set up dedicated R&D Key Accreditations center in Hyderabad in 2006 prior to commissioning API manufacturing facility in 2007 and further expansion completed in 2017. ◼ R&D team comprising 800 plus scientists (~24% of total employee strength) inc
Slide 11: Quality Focus & Regulatory Audits
Quality Focus & Regulatory Audits Laurus’ Philosophy “One Quality Standard for all markets” Regular Inspection at different manufacturing units 2018 USFDA, ANVISA (Brazil) We maintain consistent quality, efficiency and product 2017 WHO, USFDA, EU (Germany) safety. 2016 USFDA We have adopted uniform
Slide 12: Manufacturing Facilities at Parawada, Vizag
Manufacturing Facilities at Parawada, Vizag Unit-I • Located at Jawaharlal Nehru Pharma City, Vishakhapatnam, India. • API manufacturing facility and includes capacity for ingredients, synthesis and contract manufacturing. • Commenced operations in 2007. • 316 reactors with 1,142 Kilo Liters capacit
Slide 13: Manufacturing Facilities at Achutapuram, Vizag
Manufacturing Facilities at Achutapuram, Vizag Unit-II • Located at APIIC, Achutapuram, Visakhapatnam, India. (SEZ) • FDF and API manufacturing facility • Commenced operations in 2017. • FDF - capacity of 5 bn tablets/capsules per year. • API block with 12 reactors with 83 Kilo Liters capacity. • Re
Slide 14: Business Highlights – Q3 & 9M FY19
Business Highlights – Q3 & 9M FY 19 Overall • Total Income at INR 16,568 mn during the 9M FY19 (Y-o-Y) grown by 11 % and INR 5,295 mn during quarter grown by 11% Y-o-Y. • R & D spent of INR 1,145 mn and 7.1 % as percentage of sales during 9M FY19. Generic API • Filed 234 patent applications and 73 p
Slide 15: Performance Highlights - Abridged Profit & Loss statement
Performance Highlights - Abridged Profit & Loss statement Growth % Growth % Growth % Particulars (Rs. mn) Q3 FY19 Q3 FY18 (Q3 FY19 Vs. Q2 FY19 (Q3 FY19 Vs. 9M FY19 9M FY18 (9M FY19 Vs. Q3 FY 18) Q2 FY 19) 9M FY 18) Total Revenues from Operations (Net) 5,295 4,789 10.6% 5,883 -10.0% 16,568 14,959 10.
Slide 16: Drivers of Revenue – Division wise revenue breakup
Drivers of Revenue – Division wise revenue breakup ▪ Total Revenues grew by 11% for the quarter (Y-o-Y) and 2% 4% 2% 2% 2% 9% 2% 2% 8% 7% 11% for 9M (Y-o-Y) 10% 10% 9% 9% 8% ▪ Generic API 9% 7% 8% 9% 9% ▪ ARV Segment registered a healthy growth of ~11% in 9% 6% 11% 5% 5% 9% 9M (Y-o-Y) on the back of
Slide 17: Efficient Use of Capital and Prudent Leverage
Established Track Record Of Delivering Growth – Efficient Use of Capital and Prudent Leverage Pre Tax Return on Capital Return on Equity(2) (%) Total Debt/Equity Ratio (x) Employed(1) (%) 16.5% 16.5% 17.0% 17.4% 1.2x 1.1x 14.5% 13.7% 12.7% 11.9% 0.8x 0.7x 0.6x 7.2% 4.5% FY15 FY16 FY17 FY 18 FY 19 FY
Slide 18: Management Team
Management Team Mr. Tom Versosky Mr. Chandrakanth Chereddi President FDF North America ED & Head, Generics FDF & Strategy Dr. Prafulla Kumar Nandi SVP, Global Regulatory Affairs Mr. Ravi kumar V V Mr. G Venkateshwar Reddy (Formulations) ED &CFO CS and Sr. GM – Legal & Secretarial Dr. GSR Anjaneyulu
Slide 19: Corporate Governance
Corporate Governance Executive Directors Name Background Dr Satyanarayana Chava ◼ Whole-time Director, Founder and Chief Executive Officer Ravi Kumar V V ◼ Whole-time Director and CFO Chandrakanth Chereddi ◼ Whole-time Director and Head of Generic FDF and Strategy Dr Lakshmana Rao C V ◼ Whole-time D
Slide 20: Ownership Structure
Ownership Structure Corporate Structure Laurus Labs Limited Laurus Synthesis Laurus Holdings All are 100% Sriam Labs Pvt Ltd. Inc. Ltd. Subsidiaries India USA UK Laurus Generics Laurus Generics Inc. GmbH. USA Germany Shareholding pattern * 33.5% 5.74% 8.1% 1.2% 0.11% 19.72% 11.5% 20.13% Promoter Fin
Slide 21: Fortune 500 Company, Great Place To Work
Laurus Labs is a Fortune 500 Company, Great Place To Work and one of the India’s Best Workplace in 2018 Laurus Labs is listed in the Fortune Laurus Labs is certified as Laurus Labs is recognized as 500 Companies List in India “Great Place to Work” for the one of the Best Work Places in year 2018. Bi
Slide 22: Results Conference Call
Results Conference Call Results conference call on Friday February 01, 2019 at 4:00 PM IST Details of the conference call are as follows: Timing 4:00 PM IST on Friday, February 01, 2019 Conference dial-in +91 22 6280 1214 Universal Dial-In +91 22 7115 8115 India Local access Number +91 7045671221 Av
Slide 23: Contact us
Contact us About Laurus Labs Ltd. Laurus Labs is a leading research and development driven pharmaceutical company in India. The Company has grown consistently to become one of the leading manufacturers of Active Pharmaceutical Ingredients (APIs) for anti-retroviral (ARV) and Hepatitis C. Laurus also
Slide 24: Thank You
Thank You