Cohance Lifesciences Ltd · NSE:COHANCE
Cohance Lifesciences — Suven Pharmaceuticals — H1 FY2025 Earnings Presentation
46 slides from Cohance Lifesciences's earnings presentation, Nov 12, 2024
Slide 1: Suven Pharmaceuticals Ltd. Investor Presentation – Q2 & H1FY25
Suven Pharmaceuticals Ltd. …Towards a Brighter Tomorrow Investor Presentation – Q2 & H1FY25
Slide 2: Safe Harbour
Except for historical information, all of the statements, expectations and assumptions, including expectations and assumptions, contained in this presentation may be forward- looking statements that involve a number of risks and uncertainties. Although Suven attempts to be accurate in making these f
Slide 3: Table of Contents
Table of Contents Executive Summary 04 Q2 and H1FY25 Operating and Financial Performance 05 Combined Business: Proforma Metrics Q2 FY25 11 Combined Business: Key segment wise strategy 14 Strategic Blueprint 26 ESG Sapala Acquisition 28 Update on Amalgamation of Suven Pharmaceuticals with Cohance Lif
Slide 4: Executive Summary
Executive Summary Industry : Continue to witness secular macro tailwinds and positive customer sentiments driven by supply chain de-risking & potential US Biosecure Act • Customer sentiment has been positive, as evidenced by several customer engagements and multiple new audits. This aligns well with
Slide 5: Q2 and H1FY25 Operating and Financial Performance
Q2 and H1FY25 Operating and Financial Performance
Slide 6: Q2 and H1FY25 Earnings - Pharma CDMO leads the growth
Q2 and H1FY25 Earnings - Pharma CDMO leads the growth Q2FY25 Performance: Q2 FY25 Consolidated Financial Highlights Revenue growth of 12% is driven by Pharma CDMO business and Sapala acquisition. The nature of our business remains lumpy hence quarter on quarter basis comparison is not advisable. 1
Slide 7: Q2 FY25 Consolidated Financial results
Q2 FY25 Consolidated Financial results INR Million YoY Particulars Q2FY25 Q2FY24 Q1FY25 (in. Sapla) (Ex. Sapla) QoQ • Q2FY25 reported 12% YoY growth Revenue from Operations 2,577 2,311 2,307 11.5% 7.5% 11.7% supported by Pharma CDMO and Sapala Material costs / COGS (521) (576) (636) consolidation. M
Slide 8: H1 FY25 Consolidated Financial results
H1 FY25 Consolidated Financial results INR Million YoY Particulars H1FY25 H1FY24 (in. Sapla) (Ex. Sapla) • Gross margins expanded by 378 bps to 76.3%. Adjusted Revenue from Operations EBITDA margins stood at 40.7% with Adjusted EBITDA of 4,884 5,786 (15.6)% (17.2)% Material costs / COGS (1,157) (1,5
Slide 9: Q2FY25 Business performance overview
Q2FY25 Business performance overview Q2FY25 Consolidated Financials Operational Revenue (INR Million) Adjusted EBITDA (INR Million) Margin (%) Adjusted PAT (INR Million) Margin (%) 2,577 44.5% 43.3% 34.4% 34.1% 2,311 1,028 1,115 796 878 Q2 FY24 Q2 FY25 Q2 FY24 Q2 FY25 Q2 FY24 Q2 FY25 Pharma CDMO inc
Slide 10: H1FY25 Business performance overview
H1FY25 Business performance overview H1FY25 Consolidated Financials Operational Revenue (INR Million) Adjusted EBITDA (INR Million) Margin (%) Adjusted PAT (INR Million) Margin (%) 46.9% 5,786 40.7% 34.6% 31.3% 4,884 2,716 1,989 2,002 1,527 H1 FY24 H1 FY25 H1 FY24 H1 FY25 H1 FY24 H1 FY25 Pharma CDMO
Slide 11: Combined Business: Proforma Metrics H1 FY25
Combined Business: Proforma Metrics H1 FY25
Slide 12: Proforma Merged Entity
Proforma Merged Entity H1 FY25 Merged Company INR Mn Revenue 4,884 6,043 10,927 Adjusted EBITDA 1,989 1,537 3,526 Adjusted EBITDA margin % 40.7% 25.4% 32.3% Adjusted PAT 1,527 787 2,314 Adjusted PAT margin % 31.3% 13.0% 21.2% RoCE 23.6% 22.0% 22.7% RoE 14.5% 19.7% 16.6% (Net Debt) / Net Cash to Adj.
Slide 13: Proforma Merged Entity - Combined business mix
Proforma Merged Entity - Combined business mix H1 FY25 Merged Company Formulations & Others 21% Sales Mix CDMO (1HFY25) 29% API++ CDMO API++ 51% CDMO 71% 49% 79% Manufacturing Facilities 5 (1) 7 (5) 12 (6) (Regulatory approved) R&D Centers 2 4 6 Capacity ~1,400 kL ~1,250 kL ~2,650 kL Source: Cohance
Slide 14: Combined Business: Key segment wise strategy
Combined Business: Key segment wise strategy
Slide 15: Suven, a technology lead global CDMO
Suven, a technology lead global CDMO Small Molecules, ADCs, Oligonucleotides and Peptides constitute ~52% of New Drug Additions to the Global Preclinical and Clinical Pipeline in 20241 Small Molecules *ADC Oligonucleotides • Intermediate Supply for 12 Commercial • Payload and Payload intermediate su
Slide 16: Suven will build on its current strengths and invest in value adding capabilities
Suven will build on its current strengths and invest in value adding capabilities for the future Operations Strengths Commercial Strengths OTIF (Commercial products) with high quality and Global clientele of 50+ customers (including 14 of >90% plant uptime the top 20 Pharma Companies) Large Manufact
Slide 17: Suven: Pharma CDMO – Small molecules
Suven: Pharma CDMO – Small molecules Phase III pipeline moving with higher conversions o Overall active pipeline of 100+ projects across Phase I – III Suven’s Phase III pipeline o We have 12 commercial Pharma molecules Phase III molecules Phase III intermediate Phase III pipeline 12 o Our Phase
Slide 18: Favorable Industry Macros leading to growth in Small Molecule Pipeline
Favorable Industry Macros leading to growth in Small Molecule Pipeline Small Molecule Pipeline continues to grow on the back of Oncology; Biologics as a % of Pipeline has been stable around 41-45% Active Clinical Pipeline by Year 25,000 • The current size of the clinical pipeline has grown to 22,937
Slide 19: Small molecules: Increasing proportion of US FDA approvals
Small molecules: Increasing proportion of US FDA approvals US FDA Approvals lean towards small molecules: ~70% of FDA Approvals 2023 and 9M 2024 are small molecules US FDA Approvals Trend 70 100% Record Number of Approvals in 2023: 55 novel drugs were 59 90% 60 approved in 2023. This was the second-
Slide 20: Cohance CDMO: ADC Platform on track to deliver growth
Cohance CDMO: ADC Platform on track to deliver growth ADC pipeline – progressing well Two commercial product continue to grow strong with the therapy expansion and market registrations. Growing numbers of ADC candidates entering clinical trials We have received RFQs from a large Pharma customer
Slide 21: ADC payloads - breakthrough chemistry ability
ADC payloads - breakthrough chemistry ability Cohance has organically Cohance’s proprietary developed an adjacent payload Cohance is the global technology allow to produce platform. Ongoing validation by pioneer in developing fully payload with significantly customers. synthetic route for higher lev
Slide 22: Suven's – Oligonucleotides (Sapala)
Suven's – Oligonucleotides (Sapala) Amongst the few CDMOs globally, supplying complex building blocks for Oligonucleotides Capable of Diversified innovator Synthesised several synthesising a customer (CDMO new protecting wide range of modified and Diagnostic) groups for sugar and amidites and base w
Slide 23: Suven's – Oligonucleotides (Sapala)
Suven's – Oligonucleotides (Sapala) Oligonucleotide Synthesis Market (USD BN) Oligonucleotides – Sapala acquisition consolidated • We have consolidated the Sapala business from 11th July onwards in Q2FY25. • Our commitment to expanding oligonucleuotide business is clear, with investments in Phase 1
Slide 24: Suven: Agri Chem recovery from H2; Cohance: Spec Chem niche capabilities
Suven: Agri Chem recovery from H2 Cohance: Spec Chem niche capabilities Suven's Spec/Agchem: We are seeing green shoots from our concerted BD efforts in this segment which suggest early signs of recovery. As we continue to build strategic partnerships, we’re seeing new product discussions and fr
Slide 25: Cohance: API ++ on growth path
Cohance: API ++ on growth path Cohance API++ reported 8% YoY growth in H1 with healthy order book $101+ Bn Total Addressable Market What will accelerate the base growth: Sustained growth Portfolio is unique and can drive sustained growth o Business model focus is on small-mid volume APIs. These pr
Slide 26: Strategic Blueprint
Strategic Blueprint
Slide 27: Strategic Blueprint Key Pillars
Strategic Blueprint Key Pillars Aspiration Be Most admired CDMO, known for technology, delivery, quality and innovation Pharma ADC and Spec Chem API++ CDMO Oligonucleotides CDMO: Rising RFQs and lateral Partnering with large Shaping strong Business Unique portfolio focused pipeline – both ex
Slide 28: ESG
ESG
Slide 29: ESG Aspirations
ESG Aspirations We have set multi-dimensional ESG goals for the next 5 years EHS Social Governance Reduce absolute Employees undergo Scope 1+2 emissions Ethical non- 35% from current level (2030) co2 100% Health and Safety training ZERO compliance Transition to Representation of Regulatory non- rene
Slide 30: Update on Amalgamation of Suven Pharmaceuticals with Cohance Lifesciences
Update on Amalgamation of Suven Pharmaceuticals with Cohance Lifesciences
Slide 31: Merger – Approval update
Merger – Approval update Received the approvals from the Stock Exchanges and SEBI NCLT has ordered to convene shareholders’ meeting; To be held on Thursday, November 28, 2024 Other regulatory approvals, if any to follow Pg. 31
Slide 32: Financial Performance Q2 & H1FY25
Financial Performance Q2 & H1FY25
Slide 33: Suven P&L – Adjusted EBITDA margins at 41%
Suven P&L – Adjusted EBITDA margins at 41% INR million CAGR YoY Consolidated P&L Snapshot FY20 FY21 FY22 FY23 FY24 Q2FY24 Q2 FY25 H1FY24 H1 FY25 FY20-FY24 Q2 H1 Revenue 8,338 10,097 13,202 13,403 10,514 2,311 2,577 5,786 4,884 6.0% 11.5% (15.6)% Revenue growth in 1H muted COGS (2,292) (3,019) (3,991
Slide 34: Suven Balance Sheet – Healthy cash rich B/S
Suven Balance Sheet – Healthy cash rich B/S INR million Consolidated Balance Sheet Snapshot FY20 FY21 FY22 FY23 FY24 H1 FY24 H1 FY25 Property, plant and equipment (PPE) 3,531 4,371 5,306 5,842 5,672 5,717 6,136 Right of use asset (RoU) 9 17 14 169 406 172 454 Capital work-in-progress 1,016 961 300 1
Slide 35: Suven – Key Ratios
Suven – Key Ratios H1 H1 Key Ratios FY20 FY21 FY22 FY23 FY24 Basis FY24 FY25 Net Working Capital (as days of sales) 97 80 114 96 112 115 125 Core NWC / Revenue * 365 PPE (as % of sales) 42.3% 43.3% 40.2% 43.6% 54.0% 54.4% 63.8% Closing PPE / Revenue Capex spend during the year (INR M) 1,029 1,108 75
Slide 36: Cohance Proforma P&L – Snapshot
Cohance Proforma P&L – Snapshot INR million YoY CAGR Proforma P&L Snapshot FY19 FY20 FY21 FY22 FY23 FY24 Q2FY24 Q2FY25 H1FY24 H1FY25 Q2 H1 FY19-FY24 In 1HFY25 API++ segment Revenue 7,272 8,631 10,043 12,802 13,375 13,408 3,993 3,469 6,271 6,043 13.0% (13.1)% (3.6)% posted growth of 8% YoY COGS (2,
Slide 37: Cohance Proforma Balance Sheet – Snapshot
Cohance Proforma Balance Sheet – Snapshot INR million Proforma Balance Sheet Snapshot 1 Mar19 Mar20 Mar21 Mar22 Mar23 Mar-24 H1 FY24 H1 FY25 Property, plant and equipment (PPE) 3,699 3,824 4,128 4,090 4,217 4,601 4,193 7,116 Right of use asset (RoU) 2 0 13 89 179 202 356 175 427 Capital work-in-prog
Slide 38: Cohance Proforma – Key Ratios
Cohance Proforma – Key Ratios Key Ratios FY19 FY20 FY21 FY22 FY23 FY24 H1FY24 H1 FY25 Basis Net Working Capital (as days of sales) 163 158 147 150 156 185 178 157 NWC / Revenue * 365 PPE (as % of sales) 50.9% 44.3% 41.1% 31.9% 31.5% 34.3% 31.3% 54.0% PPE / Revenue Capex spend during the year (INR M)
Slide 39: Proforma P&L Suven + Cohance Combined – Snapshot
Proforma P&L Suven + Cohance Combined – Snapshot INR million CAGR YoY Combined Proforma P&L Snapshot FY20 FY21 FY22 FY23 FY24 Q2 FY24 Q2 FY25 H1 FY24 H1 FY25 FY20-FY24 Q2 H1 Revenue 16,969 20,140 26,004 26,779 23,922 6,304 6,046 12,057 10,927 5.9% (4.1)% (9.4)% Revenue declined by 9% YoY, COGS (5,99
Slide 40: Proforma BS Suven + Cohance Combined– Snapshot
Proforma BS Suven + Cohance Combined– Snapshot INR million Combined Balance Sheet Snapshot1 FY20 FY21 FY22 FY23 FY24 H1 FY24 H1 FY25 Property, plant and equipment (PPE) 7,354 8,499 9,396 10,059 10,273 9,910 13,252 Right of use asset (RoU) 2 22 105 193 372 762 348 881 Capital work-in-progress 1,114 1
Slide 41: Suven + Cohance Combined Ratios
Suven + Cohance Combined Ratios Key Ratios# FY20 FY21 FY22 FY23 FY24 H1 FY24 H1 FY25 Basis Net Working Capital (as days of sales) 128 113 132 125 153 155 144 NWC / Revenue * 365 days PPE (as % of sales) 43.3% 42.2% 36.1% 37.6% 42.9% 41.4% 58.1% PPE / Revenue Capex spend during the year (INR M) 1,527
Slide 42: Annexure
Annexure
Slide 43: Appendix - Adequate Capacity to serve current and future demand
Appendix - Adequate Capacity to serve current and future demand Vizag, Andhra Pradesh, India Pashamylaram, Telangana, India Suryapet, Telangana, India API’s/Advanced Intermediate’s/CMO API & Formulation Facility Intermediate Facility Hyderabad Knowledge City, o 706 KL reactor volume o 406 KL reactio
Slide 44: Cohance's Specialized manufacturing capabilities
COHANCE’S Specialized manufacturing capabilities API Unit-1, Andhra Pradesh, India API Unit-2, Andhra Pradesh, India API Unit-3, Gujrat, India FDF Unit-1, Telangana, India o 120 reactors, > 520Kl capacity o 1.8Bn OSDs and 350MT Pellets per annum o 46 reactors, >140Kl o 68 reactors, >420Kl capacity o
Slide 45: Contact Information
Contact Information Cyndrella Carvalho, Head - Investor Relations, Suven Pharmaceutical Ltd Tel: +91 9823615656 Email: cyndrella.carvalho@suvenpharm.com Gavin Desa / Rishab Barar CDR - India Tel: +91 98206 37649/ +91 77770 35061 Email: gavin@cdr-india.com / rishab@cdr-india.com Pg. 45
Slide 46: Thank You
¢ SUVEN Thank You PHARMA
Suven Pharmaceuticals — H1 FY2025 Earnings Presentation on 6ix