Syngene International Ltd. · NSE:SYNGENE
Syngene International — Q1 FY20 Earnings Presentation
29 slides from Syngene International's earnings presentation, Jul 24, 2019
Slide 1: Syngene Investor Presentation filing letter
Syngene Syngene international Limited Biocon Park SEZ, Bommasandra IV Phase, Jigani Link Road, Bengaluru 560099, India. T +91 80 6775 8000 F +91 80 6775 8808 Ref: Syn/CS/SE/IP/July/2019-20/42 CIN: L85110KA1993PLC014937 www.syngeneinti.com July 24, 2019 To, To, The Manager Listing The Manager Listing
Slide 2: Investor Presentation June 2019
Investor Presentation June 2019 Strictly confidential & privileged
Slide 3: Safe harbour
Safe harbour Certain statements in this release concerning our future growth prospects are forward-looking statements, which are subject to a number of risks, uncertainties and assumptions that could cause actual results to differ materially from those contemplated in such forward-looking statements
Slide 4: Introduction
Introduction Putting Science to Work
Slide 5: Introduction: The Biocon Group and Syngene's Shareholding Pattern
Introduction The Biocon Group Syngene’s Shareholding Pattern1 ▪ Services Based ▪ Contract Discovery 28% ▪ Contract Development ▪ Contract Manufacturing Promoter Syngene 1% ESOP ▪ Product Based Public ▪ Biosimilars 71% ▪ Formulations and Compounds ▪ Alternative Therapeutic Drugs 4 1 As of 30th June 2
Slide 6: Our Company at a glance
Our Company at a glance All figures in INR Mn unless otherwise specified Overview Track Record Quality and Certifications • A global scale integrated research • Collaborations and partnerships to deliver • Committed to providing services and services organization listed on Indian numerous clinical c
Slide 7: Our Journey
Our Journey Foundation Globalization and strategic acquisition • Operations started • Expanded into formulations development • Expansion of R&D Lab • Contract with Endo Pharmaceuticals to develop novel anti cancer biological • Granted 100% Export Oriented Unit (EOU) therapeutic molecules status by t
Slide 8: Putting science to work
Putting science to work Who we are and what we do ▪ Combining world class research talent and infrastructure with the Indian cost advantage ▪ Converting R&D to a variable cost for clients ▪ Moving beyond cost arbitrage to R&D productivity and innovation Key differentiators of growth Scalable Predict
Slide 9: Recent business highlights
Recent business highlights All figures in INR Mn unless otherwise specified Quarter highlights: P&L Summary Q1 FY20 Q1 FY19 YoY Change • Revenue growth in the quarter was driven by good growth in discovery Revenue 4,414 4,248 4% services and steady performance in dedicated R&D centres businesses EBI
Slide 10: Our Industry
Our Industry Putting Science to Work
Slide 11: Global CRO market
Global CRO market • Global healthcare Contract Research Industry Statistics Organisation (CRO) market size is expected to reach USD 57.8 billion by 2023; (USD bn) • Demand for CROs is expected to increase in CRO- Market size and forecast CMO- Market size and Forecast emerging markets such as China a
Slide 12: Business overview
Business overview Putting Science to Work
Slide 13: Our platforms allow us to be a one-stop-shop for discovery and development
Our platforms allows us to be a “one-stop-shop” for discovery and development requirements.. Discovery Development Manufacturing Chemistry Drug Substance Clinical Supplies Drug Product Small Molecules Large Biology Molecules Integrated Drug Substance – HPAPI Drug Product Safety Assessment Specialty
Slide 14: Discovery Services: From target to a drug candidate
Discovery Services: From target to a drug candidate Candidate Hit to lead Lead optimisation Development selection Candidate Candidate 5 Lead Selection Development Compounds Exploratory PK, Tox and Developability Assessment 20 Lead In-Vivo DMPK Profiling, Compounds CADD 500 Lead Generation of focused
Slide 15: Development Services
Development Services ▪ Encompass activities across multiple disciplines as a molecule moves from pre-clinical to clinical trials Preclinical Studies ▪ Key activities include: Drug product ▪ Drug substance development (process R&D and optimisation) Drug Dvpt. Substance ▪ Drug product development (pre
Slide 16: Manufacturing Services
Manufacturing Services Small Molecules • State-of-the-art cGMP facility to manufacture NCEs • Designed to support multi gram to 100s of kgs/ batch of Intermediates and APIs for clinical trials; current capacity can support initial commercial supplies • New greenfield investment being made in Mangalu
Slide 17: Investing in state-of-the-art infrastructure and people capabilities
We continue to invest in state-of-the-art infrastructure with a focus on people capabilities, compliant systems and processes Bengaluru, India - Biocon Park Spread across 90 acres where most of Syngene’s capabilities are housed today Near - Term Expansion Biocon Park Biologics Manufacturing plant, f
Slide 18: A range of successful collaboration models
We currently operate a range of successful collaboration models.. Client Base FY 19 331 FY 18 316 FY 17 Dedicated R&D Labs FTE FFS 293 • Dedicated scientific resources • Flexible, on-demand • Dedicated scientific and FY 16 selected from partner-specified resources with targeted skill support personn
Slide 19: Our Dedicated R&D Centres are an industry leading model
Our Dedicated R&D Centres are an industry leading model Largest R&D Centre in Asia for Dedicated R&D Centre in India Exclusive R&D Centre for Amgen Herbalife’s 1st Nutrition BMS (2009). Contract extended for Baxter (2013). Contract Inc. in India (2016) Research and Development Lab till 2026 extended
Slide 20: Multiple layers of growth
Multiple layers of growth Expand/Extend Existing Clients Capacity Expansion - High service integration - Consistent expansion - Dedicated centres model - FTE services, manufacturing, formulation, biologics, stability Engage New Clients - Tailored service offerings and Client Capacity dedicated perso
Slide 21: Highly experienced and qualified team of scientists
…supported by our highly experienced and qualified team of scientists ~4,000 Strong pool of scientists* 15% 11% 01 Create competitive edge over peers ~600 ~440 02 Deliver quality output to clients PhDs 03 Led by dedicated and experience management Master's team Degree Others We are one of the larges
Slide 22: Managing risks
Managing risks Risk Mitigation Inadequate client retention and Widening scope of engagement through new service offerings, Investment in client base growth business development activities. Information Technology threats and Regular evaluation and upgrade of systems/applications, Disaster recovery pl
Slide 23: Financial highlights
Financial highlights Putting Science to Work
Slide 24: Q1 FY20 financial highlights
Q1 FY20 financial highlights All figures in INR Mn unless otherwise specified Particulars Q1 FY20 Q1 FY19 YoY Change Revenue 4,414 4,248 4% Material and Power costs 1,173 1,396 (16%) Employee costs 1,322 1,077 23% Gross Margin 1,919 1,775 8% Gross Margin (%) 43% 42% Foreign Exchange (net) (16) (106)
Slide 25: FY19 financial highlights
FY19 financial highlights All figures in INR Mn unless otherwise specified Particulars FY19 FY18 YoY Change Balance Sheet Highlights Revenue 19,007 14,849 28% Material and power costs 5,725 4,164 37% As on 31st March 2019 Employee costs 4,727 3,796 25% Gross Margin 8,555 6,889 24% Shareholders’ fund
Slide 26: Strong track record of growth with best-in-class profitability
Strong track record of growth with best-in-class profitability ▪ Growth driven by increase in sales from existing clients and acquisition of new clients ▪ “Engage, expand and extend” strategy to extend client relationship over a longer period of time ▪ Growth in total number of clients ▪ Increase in
Slide 27: Industry recognition for scientific capability and best practices
We have consistently received industry recognition for our scientific capability and best practices • CMO Leadership Awards 2019 - Presented by Life Science Leader • Organization with Innovative HR Practices Magazine • Best Contract Research Award - At the 14th Annual Asia Pacific HRM • FICCI CSR Aw
Slide 28: The Syngene Advantage
The Syngene Advantage ✓ Integrated service provider offering end-to-end discovery ✓ Offers both small and large molecule discovery and and development services on a single platform. development. ✓ World-class infrastructure spread across more than 1.4 ✓ Successfully audited by top pharma/ biotech co
Slide 29: Thank You
THANK YOU For more details www.syngeneintl.com • Visit www.syngeneintl.com • IR Contact : Chanderlekha Nayar +91 80 6775 8821 +91 725 919 2001 chanderlekha.nayar@syngeneintl.com Putting Science to Work
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