Gland Pharma Ltd. · NSE:GLAND
Gland Pharma — Q4 FY2023 Earnings Presentation
36 slides from Gland Pharma's earnings presentation, May 18, 2023
Slide 1: Gland Pharma Limited
GLAND GLAND PHARMA LIMITED May 18, 2023 BSE Limited National Stock Exchange of India Limited Corporate Relationship Department Listing Department Phiroze Jeejeebhoy Towers Exchange Plaza, 5th floor 25th floor, Dalal Street Plot no. C-1, Block G, Bandra Kurla Complex Mumbai - 400 001 Bandra (East), M
Slide 2: Financial Results Q4 FY23 & FY23
GLAND PHARMA LIMITED Gland Pharma Limited Financial Results Q4’FY23 & FY23 18th May 2023 Cemcitibii lajectiM ■
Slide 3: 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 4: Financial Highlights (1/3)
Financial Highlights (1/3) Strengthening our core amid challenges Revenue from Operations EBITDA (1) / EBITDA Margin (2) (INR Mn) (INR Mn / %) 11,030 44,007 15,102 3,484 36,246 7,850 10,248 1,684 34% 32% 28% 21% Q4 FY22 Q4 FY23 FY22 FY23 Q4 FY22 Q4 FY23 FY22 FY23 PBT / PAT / PAT Margin (3) R&D Expen
Slide 5: Financial Highlights (2/3)
Financial Highlights (2/3) Strong Balance Sheet to support future growth plans Net Worth (1) Cash and Bank Balances / Net Cash (2) (INR Mn) (INR Mn) 79,587 71,576 37,707 37,669 34,483 34,444 59,032 30,058 30,017 Mar'21 Mar'22 Mar'23 Mar'21 Mar'22 Mar'23 Networth Total Cash Net Cash Net Working Capit
Slide 6: Financial Highlights (3/3)
Financial Highlights (3/3) Focus on Capital efficiency Asset Turnover Ratio (1)(2) ROCE (ex-cash)(3) / ROCE (4) / RONW (5) (%) 2.8 2.8 35% 33% 2.2 21% 18% 17% 0.7 21% 11% 0.6 0.5 19% 11% Total asset turnover Fixed asset turnover FY21 FY22 FY23 FY21 FY22 FY23 RoCE (Ex-Cash) RoCE RoNW Cash Flow from O
Slide 7: P&L Highlights
P&L Highlights (INR Mn) YoY YoY Particulars Q4 FY23 Q4 FY22 FY23 FY22 Q3 FY23 change change Revenue from operations 7,850 11,030 -29% 36,246 44,007 -18% 9,383 Gross Margin(1) 4,202 5,577 -25% 19,392 22,915 -15% 5,112 % margin 54% 51% 54% 52% 54% EBITDA(2) 1,684 3,484 -52% 10,248 15,102 -32% 2,896 %
Slide 8: Quarterly and Full year performance key points
Quarterly and Full year performance key points ▪ Revenue from operations for the fiscal 2023, declined by 18% as compared to the previous year due to: ▪ Inventory rationalization across customers in the US market ▪ Higher pricing pressure with increased competition impacting revenue and margins ▪ Hi
Slide 9: Completed Acquisition of Cenexi
Completed Acquisition of Cenexi Gland, through its wholly owned subsidiary, Gland Singapore, has paid an amount of EUR 114.26 Mn and refinanced the outstanding existing loan of EUR 79.46 Mn to complete the acquisition of Cenexi on April 27, 2023. Cenexi : Business Overview Strategic Objective ➢ Foun
Slide 10: USA, Europe, Canada, Australia and New Zealand (Core Markets)
USA, Europe, Canada, Australia and New Zealand (Core Markets) ▪ Revenue: FY23: Rs. 26,851 Mn Q4 FY23: Rs. 5,498 Mn YoY Growth: -8% YoY Growth: -23% We are constantly working on improving material availability and resolving any production delays. Strategic shift at some of our customers has impacted
Slide 11: Rest of the World Markets
Rest of the World Markets ▪ Our key markets by revenue contribution continue to FY23: Rs. 6,894 Mn Q4 FY23: Rs. 1,705 Mn YoY Growth: -19% YoY Growth: -10% remain MENA, LatAm and APAC. ▪ Enoxaparin Sodium was a key revenue contributor Rest of the World Markets during the year along with other product
Slide 12: India (Domestic Market)
India (Domestic Market) ▪ The India sales stood at 8% of our revenue for Q4 FY23 FY23: Rs. 2,501 Mn Q4 FY23: Rs. 647 Mn YoY Growth: -60% YoY Growth: -68% as compared to 18% in Q4 FY22. ▪ For the full year FY23, the revenue contribution stood at India (Domestic Market) 7% as compared to 14% in FY22.
Slide 13: Building complex injectable presence
Building complex injectable presence USA Market Size ( ~ USD 10 Bn) In-house capabilities • Complex molecules manufacturing infrastructure – 21% 21% Suite 5 with capability to handle Hormones /suspensions is operational and Suite 9 with 5% 5% microsphere(Combi-line) capability will be ready 11% duri
Slide 14: Key Focus Areas
Key Focus Areas 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 emerging mark
Slide 15: Investor Presentation
GLAND PHARMA LIMITED Investor Presentation Cemcitibii lajectiM ■
Slide 16: 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 334 ANDA Filings in Consistent Compliance Track Record with from USFDA Since the US (1) (2
Slide 17: 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 18: 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 19: 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, 2023 • Successful track record of operating B2B model with leading companies, complemented by a B2C model in home market of India leveraging brand stren
Slide 20: 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 21: 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 22: Generic Injectables: Market & Growth Drivers
Generic Injectables: Market & Growth Drivers US$101bn Market with Multiple Growth Levers Driven by LoEs, Opportunity from Shortages and Ease of Use Geographic Mix- Generic Injectable (18-22 CAGR) US Generic Injectable market (US$bn) (US$bn) +5% 101 India 9% 27 2 +5% 22 83 China 5% 2 37 The US Generi
Slide 23: Generic Injectables: Market Entry Barriers
Generic Injectables: Market Entry Barriers Manufacturing Complexities to Meet High Level of Compliance and Stringent Quality Standards Regulatory Requirements Complexities involving sterilisation, packaging, High level of regulatory enforcement of cGMP sterile fill/finish, with stability assessment
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, 2023 (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: Gland's B2B Model: Salient Features
Gland’s B2B Model: Salient Features Advantages Include Stable Cash Flows, Better Profitability Profile, Margin Stability from Natural Hedge Against Raw Material Pricing and End-formulation Pricing Fluctuations Steady / Predictable Cash Flow ✓ Long-term supply contracts with marketing partners rangin
Slide 27: 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 inject
Slide 28: Supported by Proven Regulatory Capabilities
…Supported by Proven 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 (FY23) Broad Range of Filin
Slide 29: Focus on Lifecycle Management of Products
Focus on Lifecycle Management of Products Focus on Lifecycle Management of Products Across Manufacturing, R&D and Supply Chain Processes to Maintain Competitive Advantage Over Peers Vertical Integration as Differentiator Operational Efficiencies ▪ Ability to vertically integrate and manufacture ▪ Ab
Slide 30: Corporate Governance Framework Based on Independent Board
Corporate Governance Framework Based on Independent Board Name Profile Board of Directors Yiu Kwan Stanley Lau • Bachelor’s degree in pharmacy from The School of Pharmacy, University of London % Chairman and Independent Director • Director on the board of Solasia Pharma K. K. and TaiLai Bioscience L
Slide 31: Professional and Experienced Management Team
Professional and Experienced Management Team Name Qualification Management Team Srinivas Sadu • Master’s degree in science (industrial pharmacy) from Long Island University, New York Managing Director and Chief Executive • Master’s degree in business administration from University of Baltimore; Offi
Slide 32: Promoted by Shanghai Fosun Pharma
Promoted by Shanghai Fosun Pharma Shanghai Fosun Pharma is Global Pharmaceutical Major with Extensive Pharmaceutical Manufacturing, Distribution and R&D Expertise Globally ● Fosun Pharma is a Global pharmaceutical major, whose shares are listed on the Shanghai Stock Exchange and the Stock Exchange o
Slide 33: Building Blocks to Implement Future Strategy
Building Blocks to Implement Future Strategy Continued Focus on Cost Management Pursue Strategic Acquisitions and Align with 6 Partnerships Shanghai Fosun Pharma to Increase Market 5 Increase Current Share Continue to Market Presence Invest in and Enter New 4 Manufacturing Markets and Technological
Slide 34: Proven Track Record of Financial Performance
Proven Track Record of Financial Performance Revenue from Operations EBITDA (1) / EBITDA Margin (2) (INR Mn) (INR Mn / %) FY 20 - 23 44,007 34% 28% 38% 34,629 36,246 36% 15,102 26,332 13,022 9,555 10,248 FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 PBT / PAT / PAT Margin (3) cF Y 2 0 - 2 3 R&D Expenses /
Slide 35: Proven Track Record of Financial Performance (Cont'd)
Proven Track Record of Financial Performance (Cont’d) Net Worth (1) Cash and Bank Balances / Net Cash (2) (INR Mn) (INR Mn) 30% CAGR 34,483 34,444 37,707 37,669 30,058 30,017 79,587 71,576 59,032 13,252 13,202 36,462 FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 Cash and cash equivalents Net Cash Asset Tu
Slide 36: Gland Pharma Limited
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