Dr. Reddy's Laboratories Ltd. · NSE:DRREDDY

Dr. Reddy's Laboratories — Investor Presentation (November 2010)

26 slides from Dr. Reddy's Laboratories's investor presentation, November 2010

  1. Slide 1: Dr. Reddy's Investor Presentation November 2010

    Dr. Reddy’s Investor Presentation Novemeber 2010

  2. Slide 2: Safe Harbor Statement

    Safe Harbor Statement This presentation contains forward-looking statements and information that involve risks, uncertainties and assumptions. Forward-looking statements are all statements that concern plans, objectives, goals, strategies, future events or performance and underlying assumptions and

  3. Slide 3: Overview

     Overview  Global Generics  Pharmaceutical Services and Active Ingredients  Proprietary Products  Looking Ahead 2

  4. Slide 4: Purpose and Strategy

    Purpose: Providing affordable and innovative medicines for healthier lives. Strategy: Leverage industry-leading science & technology, product offering and customer service with execution excellence. 3

  5. Slide 5: Overview

    Overview  Global pharmaceutical company focused on active pharmaceutical ingredients & custom services, generics and proprietary products.  Amongst the largest Indian pharmaceutical companies  Revenues of U.S. $1.56 bn in FY2010 with a CAGR of ~ 25% over the last decade.  Strong vertically integ

  6. Slide 6: The Last Decade

    The Last Decade Built the foundations for a strong business. Moved up the value chain. Strengthened capabilities. Achieved scale and global presence. Growth aided by acquisitions. Revenues [USD Mn] 1,510 1,563 1,365 1,250  Germany & Mexico acquisitions  Authorized generic launches 546 463 447 338

  7. Slide 7: Integrated Business Model

    Integrated Business Model Pharmaceutical Proprietary Services & Active Global Generics Products Ingredients • FY10 Revenue mix 2/3rd of total • Focus on building • FY10 Revenue mix 1/3rd sustainable and profitable of total • Finished dosage branded innovative businesses in business • Amongst the lea

  8. Slide 8: Our Strengths

    Our Strengths  Industry leading chemistry skills which has resulted in several niche product opportunities (eg: fondaparinux, fexofenadine-pseudoephedrine, omeprazole mg)  High vertical integration (~75% of APIs sourced internally), global leader in DMF filings (394 global DMFs as of Sep 2010)  C

  9. Slide 9: Infrastructure

    Infrastructure  API manufacturing : India – 6, Mexico – 1, UK – 1. All USFDA approved  Finished Dosages : India – 6 out of which 2 USFDA approved manufacturing US – 1 approved by USFDA  Biologics Facility : India - 1, audited by multiple regulatory agencies  Custom Pharma : 3 Technology Developm

  10. Slide 10: Business Priorities

    Business Priorities Pharmaceutical Proprietary Services & Active Global Generics Products Ingredients Create compelling value Improve depth in key Calibrate investments to for customers by markets through portfolio create a self sustainable leveraging IP, technology expansion and supply model and co

  11. Slide 11: Financial Targets FY13

    Financial Targets  FY13 RoCE 25% Revenues $3 bn 10

  12. Slide 12: Recent Performance Results H1 FY11

    Recent Performance  Results H1 FY11 • $172 mn • $797 mn • 22% to sales Revenue EBITDA Launches PAT & Filings • $111 mn • 73 new launches • 14% to sales • 47 generics filings & 16 DMFs 11 All figures converted in USD at convenience translation rate as of Sep 10

  13. Slide 13: Key Balance Sheet Items

    Key Balance Sheet Items $ mn Sep 2010 Jun 2010 Cash & Cash Equivalents 139 143 Inventory & Receivables 631 611 Property, plant & equipment 570 537 Goodwill & Intangibles 303 298 Loans & borrowings (current & non current) 325 311 Equity & Reserves 1,015 1,009 o Net Debt – Equity ratio as of Sep 10 

  14. Slide 14: Global Generics

     Dr. Reddy’s Overview  Global Generics  Pharmaceutical Services and Active Ingredients  Proprietary Products  Looking Ahead 13

  15. Slide 15: Global Generics

    Global Generics Geographically well diversified with mix of generics and branded generics Global Generics Branded Generics Generics North GSK CIS,Venezuela, Germany UK India Russia Alliance America Romania & ANZ Key Priorities:  Deepening market presence  Differentiated product portfolio  Supply

  16. Slide 16: Global Generics – Regulated Markets

    Global Generics – Regulated Markets 301 Revenue ($ Mn) Excluding upside revenues 272 North America 199 • 15 products ranked among Top 3 in market 109 shares 37 • 74 pending ANDAs // 39 P IVs // 12 FTFs • H1 FY11 Sales - $180 mn FY06 FY07 FY08 FY09 FY10 Upside Revenues  $400 mn $140 mn $55 mn Revenu

  17. Slide 17: North America: Growing annuity of opportunities

    North America: Growing annuity of opportunities Opportunities Product Name FY09 FY10 FY11 FY12 FY13 FY14 FY15 (Product A) X 180 days (Product B) X Exclusivity (Product C) X Sumatriptan X Rivastigmine X Desloratadine Settlements X (5mg / ODT / Pseudoephedrine) / Go early Finasteride 1 mg X Amlodipine

  18. Slide 18: Global Generics – Branded Markets

    Global Generics Continued strong growth in Branded Markets 226 Revenue ($ Mn) 179 189 India 133 155 • Top 10 brands ranked among Top 2 in market shares • Portfolio of > 200 brands • H1 FY11 Sales - $129 mn FY06 FY07 FY08 FY09 FY10 152 125 Revenue ($ Mn) 101 Russia 79 60 • Top 4 products ranked #1 in

  19. Slide 19: Pharmaceutical Services and Active Ingredients

     Dr. Reddy’s Overview  Global Generics  Pharmaceutical Services and Active Ingredients  Proprietary Products  Looking Ahead 18

  20. Slide 20: Pharmaceutical Services & Active Ingredients

    Pharmaceutical Services & Active Ingredients Revenue ($ Mn) 407 413 408 430 216 FY06 FY07 FY08 FY09 FY10  Stable business catering to both internal & external customers  Internal sourcing of API for generics  > 75%  Strong portfolio of API resulting in higher market shares for vertically integra

  21. Slide 21: Proprietary Products

     Dr. Reddy’s Overview  Global Generics  Pharmaceutical Services and Active Ingredients  Proprietary Products  Looking Ahead 20

  22. Slide 22: Proprietary Products: Biologics

    Proprietary Products: Biologics Built product development and manufacturing capabilities with a focus on becoming a leading integrated global player in generic biologics. Product Portfolio: Strategic focus on 2nd wave biologics  Products are complex glycosylated proteins requiring specialized compe

  23. Slide 23: Proprietary Products: Differentiated Formulations and NCE R&D

    Proprietary Products: Differentiated Formulations and NCE Research & Development  Hybrid Differentiated Formulations/NCE Strategy anchored around :  Specialty indications with feasibility to self-commercialize  Higher conversion from preclinical-to-clinic  Enabled by core capabilities :  Strong

  24. Slide 24: Looking Ahead

     Dr. Reddy’s Overview  Global Generics  Pharmaceutical Services and Active Ingredients  Proprietary Products  Looking Ahead

  25. Slide 25: Key Messages

    Key Messages FY 11 Guidance : RoCE of 18 – 22% FY13 Goal : Revenues  $3 bn & RoCE of 25% Amongst the leading pipeline of ANDA & DMF filings globally Strong & sustained cash flows expected from product opportunities such as Omeprazole Mg OTC, Tacrolimus & Fondaparinux Attractive Emerging Markets pre

  26. Slide 26: Thank You

    Thank You LIFE , RESEARCH «. HOPE

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