Alkem Laboratories Ltd. · NSE:ALKEM
Alkem Laboratories — Investor Presentation (September 2024)
32 slides from Alkem Laboratories's investor presentation, Sep 17, 2024
Slide 1: Exchange filing cover letter for analyst meeting presentation
17th September, 2024 To, The Corporate Relationship Department National Stock Exchange of India Limited BSE Limited Exchange Plaza, Phiroze Jeejeebhoy Towers, Bandra Kurla Complex, Dalal Street, Bandra East, Mumbai 400 001. Mumbai 400 051. Scrip Code: 539523 Scrip Symbol: ALKEM Sub: Presentation w.r
Slide 2: Alkem Laboratories Limited, September 2024
Alkem Laboratories Limited September 2024
Slide 3: 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
Slide 4: Contents
CONTENTS Company overview and journey so far Our endowments and key value drivers Market leadership in domestic market Fast growing and established international operations Outlook for growth 2
Slide 5: Alkem at a glance
Alkem at a glance INR 125+ Bn 50+ 5th Revenue from global operations Years of strong growth in Largest Pharma company in India in FY24 Pharma industry (Est. in 1973) in terms of market share INR 730+ Bn market capitalization as of August 24 Predominantly 10+ Experienced India focus Technology platfo
Slide 6: Strong trajectory with ~17% growth CAGR between FY09-24
Alkem has demonstrated strong trajectory with ~17% growth CAGR b/w FY09-24; “Next Alkem” created every 5 years Alkem sales, INR Mn1 CAGR ~2.4x ~1.7x FY10-24 124,392 ~2x growth in topline as well as market cap=> “next Alkem” created ~17% every five years 72,658 Three key pillars driving growth – Int’
Slide 7: 50 years of Alkem journey – a snapshot
50 years of Alkem journey – a snapshot Professionalization of the organization 1973 1978 1998 2003 2006 2007 Inception of Alkem Established the first plant Established the Kachigam First R&D facility Taxim became India's first Filed the first ANDA in Laboratories Limited at Taloja, Mumbai manufactur
Slide 8: Distinctive capabilities across manufacturing and R&D
Distinctive capabilities and track record of delivery across manufacturing and R&D Manufacturing facilities R&D facilities Manufacturing Manufacturing Capabilities accreditations 10+ 15+ Technology Global regulatory platforms accreditation Tablet USFDA BfArM Capsules MHRA California (1) 19 New Jerse
Slide 9: Fortifying therapy leadership through growing platforms and new modalities
Fortifying therapy leadership globally through investment in growing platforms (e.g., Biosimilars, injectables) and new modalities (e.g., mRNA and viral vector) 10+ 3 178 1,100+ technology platforms new modality platforms US ANDA’s filed Dossiers filed in Int’l incl. fast growing dos- being develope
Slide 10: Experienced leadership team with cumulative 250+ years of experience
Experienced leadership team with cumulative 250+ years of relevant experience Dr. Vikas Gupta Nitin Agarwal Sunil Pathak Mukesh Tiwari Amit Ghare Ashish Sehgal Chief Executive Office Chief Financial Officer Head, India Rx (Semi- Head, India Trade Gx Head, International Head, R&D and Chronic) Busines
Slide 11: Financial performance – Summary P&L statement
Financial performance – Summary P&L statement Financials (INR Mn) Revenue FY'19 FY'20 FY'21 FY'22 FY'23 FY'24 Domestic market growth of 11.4% CAGR; Sale of Product 72,658 81,920 87,284 105,120 114,403 124,392 TGx contributes to 20%+ of domestic sales Other Operating Int’l market growth of 10.8% CAGR
Slide 12: Financial performance – Income statement highlights
Financial performance – Income statement highlights Other income Finance costs XX% % of revenue Other income and Finance costs (INR Mn) 3,108 Other income comprises interest 2,332 income from deposits, dividend income, 2,161 income from a real estate fund, net 1,627 gains on sales of investments, re
Slide 13: Contents
CONTENTS Company overview and journey so far Our endowments and key value drivers Market leadership in domestic market Fast growing and established international operations Outlook for growth 11
Slide 14: Contents
CONTENTS Company overview and journey so far Our endowments and key value drivers Market leadership in domestic market Fast growing and established international operations Outlook for growth 12
Slide 15: Alkem is the 5th largest player in domestic formulations market
Alkem is the 5th largest player in domestic formulations market, growing faster than IPM as well as the top 3 players Alkem is ranked 3rd in IPM wrt Rx volumes and 5th wrt to sales (basis IQVIA MAT Aug’24) Alkem’s domestic business witnessed ~12% growth CAGR b/w Revenue, Market CAGR IPM Rank – IPM R
Slide 16: Key highlights of Alkem's domestic business
Key highlights of Alkem’s domestic business Detailed ahead Investment in core value drivers… 6 17 85% Brands within top-100 IPM brands; 1+ Bn brands; 3 mega (5+ Bn) Coverage across prescriber base 16 brands within top 300 IPM brands brands #3 12,500+ In new products launch; 60+ New Field force – 2nd
Slide 17: Big brands present in attractive segments with higher-than-market growth
Big brands (contributing to 50%+ of total sales) are present in attractive segments and have continued higher-than-market growth Revenue split of Alkem1 Illustrative examples FY20 FY24 revenue, Revenue, CAGR, Market CAGR, Key Brand Rank INR Mn INR Mn (FY20-24) % (FY20-24) % PAN 1 6428 17% 14% 3451 G
Slide 18: Strengthened new product portfolio through launches and high potential brands
In parallel Alkem has strengthened its new product portfolio through new launches and accelerating growth of existing high potential brands Revenue split of Alkem1 Illustrative examples FY20 FY24 revenue, Revenue, CAGR, Market CAGR, Key Brand Rank INR Mn INR Mn (FY20-24) % (FY20-24) % 3 801 1130 Ant
Slide 19: Extensive sales, marketing and distribution network with strong prescriber coverage
Alkem’s extensive sales, marketing and distribution network has led to strong prescriber base coverage (85%+), ensuring sustainable growth Pan-India distribution network with deep presence in both urban and rural segment Established relationship with prescribers 84% 85% 81% 79% 12,500+ 9 75+ 8,400+
Slide 20: Contents
CONTENTS Company overview and journey so far Our endowments and key value drivers Market leadership in domestic market Fast growing and established international operations Outlook for growth 18
Slide 21: Strong footprint in international market with 30%+ revenue contribution
Building a strong footprint in the International market with 30%+ revenue contribution to overall sales Alkem’s performance in Int’l markets (basis internal data) Key details Revenue, INR Mn Generics 30%+ ~14% Revenue contribution from Growth CAGR b/w FY18- Int’l – 22% from US and 24 for US markets
Slide 22: Contents
CONTENTS Company overview and journey so far Our endowments and key value drivers Market leadership in domestic market Fast growing and established international operations Outlook for growth 20
Slide 23: 6 key trends in the Indian healthcare landscape
6 key trends in the Indian healthcare landscape and… 1 Healthcare in India is at a tipping point: Healthcare expenditure is expected to triple to $450+ Bn (~6% of GDP) by 2030, from ~$150 - 160 Bn today (~4% of GDP today) on back of rising income levels, consciousness towards health, and enhanced go
Slide 24: Alkem is well poised to ride the India wave
… Alkem is well poised to ride the India wave by capturing this opportunity and become a leading healthcare player Alkem is well positioned to capture the growing opportunity and become a leading healthcare player Traditional A Chronic • Presence in 4 key chronic TAs; market-beating growth in key fo
Slide 25: Alkem is delivering market beating growth in chronic segment
A. Alkem is delivering market beating growth in chronic segment Company’s Industry Company’s Market Growth Growth Therapy Area Rank Contribution Share FY20-24 FY20-24 Chronic 23% Anti-Diabetic 15 4.7% ~2% 7% 7 Neuro/ CNS 3.9% ~3% 13% 11% 10 13% Respiratory 1.3% ~2% 10% Cardiac 27 2.4% ~1% 11% 7% Sou
Slide 26: India TGx market expected to continue to grow at 15-18%
B. India TGx market is expected to continue to grow at 15 - 18% over the next 5 years; Alkem is the leading player in this segment TGx Rest Pharma mkt Why TGx is a critical Alkem’s IPM Sales, INR Bn segment to build performance India TGx is currently estimated to be a market of INR 180-200 1 Build d
Slide 27: Growth opportunity in the largest OTC segments
C. Alkem has seeded growth opportunity in the 3 largest OTC segments (~INR 300 Bn market) with OTC contributing to >70% of existing product sales Multiple PharmaCos Alkem has multiple brands attaining salience with strong consumer pull 2019-23 Category 2023 market size, INR Bn CAGR1, % Market share
Slide 28: Targeted investment in select high growth segments for international business
Targeted investment in select high growth segments to build next set of growth pillars for Int’l business Key trends Focus for Alkem 1 String of pearls • US continues to remain a treadmill – • Aspiration to strengthen presence in approach in RoW growth trajectories are slowing down with emerging mar
Slide 29: Bio CDMO business: strong track record delivering value
4. Bio CDMO business: Strong track record of delivering distinctive value for the customers given differentiated value proposition Strong track record of delivering value for the customers Key clients First mover Global 40+ Globally to set up an end- to-end continuous footprint projects manufacturin
Slide 30: Key Highlights of Q1FY25
Key Highlights of Q1FY25 • Total Revenue from Operations was ₹ 30,318 million, with YoY growth of 2.2%. o India sales were ₹ 20,223 million, YoY growth of 6.4%. The contribution of domestic sales to total sales in Q1FY25 was 67.6% vs. 65.2% in Q1FY24. o International sales were ₹ 9,677 million, with
Slide 31: Key Financial Highlights – Q1FY25 (Consolidated)
Key Financial Highlights – Q1FY25 (Consolidated) All figures in ₹ Mn Particulars Q1FY25 Q1FY24 YoY growth Q4FY24 QoQ growth Revenue from Operations 30,318 29,677 2.2% 29,358 3.3% Gross Profit 19,559 17,692 10.6% 18,284 7.0% Gross Profit Margin 64.5% 59.6% 62.3% EBITDA 6,086 3,892 56.4% 4,020 51.4% E
Slide 32: Thank you
Thank you
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