Sun Pharmaceutical Industries Limited · NSE:SUNPHARMA
Sun Pharmaceutical Industries — Investor Presentation (September 2022)
55 slides from Sun Pharmaceutical Industries's investor presentation, September 2022
Slide 1: Creating Lasting Value
Creating Lasting Value Investor Presentation – September 2022 NSE:SUNPHARMA | BSE:524715 | Bloomberg:SUNP IN | Reuters:SUN.BO WWW.SUNPHARMA.COM
Slide 2: Disclaimer
Disclaimer Except for the historical information contained herein, statements in this presentation and the subsequent discussions, which include words or phrases such as “will”, “aim”, “will likely result”, “would”, “believe”, “may”, “expect”, “will continue”, “anticipate”, “estimate”, “intend”, “pl
Slide 3: Contents
Contents 1 Sun Pharma at a glance 2 Long-term Strategy 3 Global Specialty Initiatives 4 Revenue Composition, History & Acquisition Track Record 5 Business Operations, R&D, Manufacturing 6 Corporate Governance 7 Financials – P&L, Balance Sheet, Cash Flows & Ratios 8 Key Milestones Targeted 3
Slide 4: Sun Pharma at a glance
Sun Pharma at a glance 4th Largest Global Specialty Generic Company* US • Ranked 8th in US Generics Market## India • No. 1 Pharma Company in India • Amongst the largest Indian Pharma Company in Emerging Emerging Markets Markets Rest of World Markets • Expanding presence in Rest of World markets Manu
Slide 5: World's 4th Largest Specialty Generic Pharma Co
World’s 4th Largest Specialty Generic Pharma Co 2021 Worldwide Generic Sales (US$ in billions) Novartis 9.2 Teva 8.3 Viatris 5.6 Sun Pharma + Taro 4.5 Pfizer 4.0 Fresenius 3.3 Aurobindo 3.2 Apotex 2.8 Dr. Reddy 2.2 Lupin 2.1 STADA 1.9 Himka 1.9 Sawai 1.8 Nichi-Iko 1.7 Les Laboratoires 1.7 Aspen 1.6
Slide 6: Sun Pharma today
Sun Pharma today US Formulations India Branded Generics 8th largest generics company in US* with a strong No.1 ranked with 11 classes of doctor categories pipeline (89 ANDAs & 13 NDAs awaiting approval) Leading position in high growth chronic therapies Presence in Specialty branded & generic
Slide 7: Driving Sustainable Long Term Growth
Driving Sustainable Long Term Growth • Enhance share of specialty business • Achieve differentiation by focusing on • Optimize operational costs technically complex products • Vertically integrated operations • Focus on key markets – achieve critical mass • Speed to market • Ensure sustained complia
Slide 8: Our Specialty Portfolio
Our Specialty Portfolio • Indication - For plaque psoriasis • Launched in US in October 2018 & in Australia in Dec-2018, Phased launch in Europe by Almirall starting December 2018 onwards • Long term clinical data shows that the significant response rate seen in 52 & 64 weeks were Ilumya/ maintained
Slide 9: Our Specialty Portfolio
Our Specialty Portfolio • Indication - For LABCC (locally advanced basal cell carcinoma) Odomzo • Currently marketed in US, Canada, Germany, France, Denmark, Switzerland, Spain, Italy, Australia and Israel • Indication - For metastatic castration resistant prostate cancer in combination with Yonsa m
Slide 10: Our Specialty Pipeline
Our Specialty Pipeline Route of Mechanism of Molecule/Asset Indication Pre-clinical Phase-1 Phase-2 Phase-3 Registration Approved Administration Action Ilumya Psoriatic IL-23 Injection (tildrakizumab) Arthritis Antagonist Psoriasis, Selective SIPR1 SCD-044 Atopic Oral Agonist Dermatitis Treatment Li
Slide 11: Highly Diversified Revenue Base
Highly Diversified Revenue Base Emerging Markets Rest of World 18% (RoW)# 14% API & Others 5% FY22 Sales India Branded Rs. 384 billion Formulations 33% US Formulations 30% # Includes Western Europe, Canada, Japan, Australia & New Zealand, Israel and other markets. 11
Slide 12: Impressive Track Record of Growth
Impressive Track Record of Growth (All Figures in Rs Billion) CAGR for FY07-FY22 384.3 100.8 104.0 76.7 69.6 302.6 Adjusted Sales 32.5 EBITDA 26.6 Net Profit 80.1 CAGR CAGR CAGR 21% 6.7 20% 7.8 16% 21.4 FY07 FY12 FY17 FY22 FY07 FY12 FY17 FY22 FY07 FY12 FY17 FY22 89.8 74.9 32.0 29.0 70.8 Adjusted 33.
Slide 13: Profitability and Return Ratios
Profitability and Return Ratios Adjusted Net Profit Gross Margin # EBITDA Margin Margin 26.9% 25.3% 73.9% 73.1% 20.0% 72.6% 71.4% 21.7% 21.3% 17.8% 13.5% 12.5% FY19 FY20 FY21 FY22 FY19 FY20 FY21 FY22 FY19 FY20 FY21 FY22 ROCE ROE Market Cap (USD Bn) 29.5 16.4% 15.0% 13.5% 12.5% 11.8% 19.3 11.0% 16.6
Slide 14: Profitability
Profitability Gross Margin EBITDA Margin Adjusted Net Profit Margin 74% 73% 73% 71% 65% 27% 64% 64% 25% 63% 22% 21% 20% 20% 19% 18% 16% 17% 14% 13% 14% 11% 9% 10% FY19 FY20 FY21 FY22 FY19 FY20 FY21 FY22 FY19 FY20 FY21 FY22 Gross margin= (Net Sales – Material Cost) / Net Sales * 100 Sun Pharma Range
Slide 15: Creating a Global Company
Creating a Global Company In-lincesed Winlevi® for Agreement with acne Acquired treatment in Acquired Dusa Merck for in- Acquired InSite Acquired Pola Began with 5 Biosintez in US & Canada. licensing Vision ophthalmic Pharma in Japan Launched in products Russia Tildrakizumab portfolio US in Nov-21 Y
Slide 16: Key Deals & Rationale
Key Deals & Rationale Year Deals Country Rationale Expanded Winlevi® licensing agreement to Japan, Australia, 2022 include Japan, Australia, New Zealand, Brazil, New Zealand, Brazil, Topical treatment of acne vulgaris Mexico & Russia markets Mexico and Russia Acquired UractivTM Portfolio from Fiterm
Slide 17: Key Deals & Rationale
Key Deals & Rationale Year Deals Country Rationale Local manufacturing capability to enhance presence in Russian 2016 Acquired Biosintez Russia market Licensing agreement with Almirall for 2016 Europe Access to European market for Tidrakizumab Tildrakizumab for Psoriasis 2016 Acquired 14 brands from
Slide 18: US Business
US Business 30% of Revenues 18
Slide 19: US Business at a glance
US Business at a glance 8th Largest Pharma Company in the US Generics Market* Dermatology Segment • Ranked 2nd by prescriptions## in the US dermatology market • Wide basket of 604 ANDAs & 67 NDAs filed and 515 ANDAs & 54 Comprehensive Portfolio** NDAs approved across multiple therapies Robust Pipeli
Slide 20: US Business – Sales
US Business – Sales Sales in Rs. billion 10 year CAGR - 13% 137 135 138 114 107 105 98 101 87 62 35 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 20
Slide 21: Key Milestones in US
Key Milestones in US FY22 • Launched Winlevi® (clascoterone cream 1%) for topical treatment of acne vulgaris • Presented long term clinical data for Ilumya & other clinical insights for Odomzo & Levulan at American Academy of Dermatology Conference FY21 • Presented Pre-clinical data for GL0034 (GLP-
Slide 22: ANDA & NDA Pipeline
ANDA & NDA Pipeline ANDAs Filed and Approved (Cumulative) NDA Filed and Approved (Cumulative) 595 605 604 571 581 561 501 512 515 483 453 422 67 67 64 59 60 55 55 54 54 52 42 39 FY18 FY19 FY20 FY21 FY22 Q1FY23 FY18 FY19 FY20 FY21 FY22 Q1FY23 Cumulative Products Filed Cumulative Products Filed Cumula
Slide 23: India Branded Generic Business
India Branded Generic Business 33% of Revenues 23
Slide 24: India Business at a glance
India Business at a glance No. 1 in India Market Position** • No. 1 ranked with 8.5% market share Prescription Ranking## • No. 1 ranked by prescriptions with 11 different classes of doctors Chronic Segment • Market leader in the chronic segment Acute Segment • Strong positioning in the acute segment
Slide 25: Largest Pharma Company in India
Largest Pharma Company in India Market Share Formulation Sales in India as of 12 Months ended June 2022 (Rs. mn) 144,960 Sun Pharma 8.5% 105,120 Abbott + Abbott HC + Novo 6.2% 82,210 Cipla 4.8% 80,410 Mankind 4.7% 66,610 Zydus 3.9% 62,030 Lupin 3.6% 58,620 Alkem + Cachet + Indchemie 3.4% 56,780 Torr
Slide 26: India Business – Sales ramp-up
India Business – Sales ramp-up Sales in Rs. Billion Therapeutic Break-up** 10 year CAGR -16% Others 128 Opthalmology 2% 4% Cardiology Urology 3% 17% One-time Gynaecology, 4% impact of change in 103 Vitamins / distribution 97 Minerals / Impact of Nutrients, 5% Ranbaxy Acquisition 80 Respiratory 5% 77
Slide 27: Leadership in key therapeutic areas
Leadership in key therapeutic areas* Number 1 Ranking with 11 Doctor Categories* Prescription Ranking Specialist Feb ‘18 Feb ’19 Feb ’20 Feb ’21 Feb ’22 Psychiatrists 1 1 1 1 1 Neurologists 1 1 1 1 1 Cardiologists 1 1 1 1 1 Gastroenterologists 1 1 1 1 1 Diabetologists 1 1 1 1 1 Dermatologists 1 1 1
Slide 28: Best-in-class field force productivity
Best-in-class field force productivity Sales Per Medical Representative (Rs. Mn) 9,291 9,550 9,707 10,963 11,149 • Well trained and scientifically Impact of oriented sales representatives sales force 11.4 team with strong performance 10.0 expansion track record 9.4 8.8 8.6 • Field force with highest
Slide 29: Emerging Markets
Emerging Markets 18% of Revenues 29
Slide 30: Emerging Markets Business at a glance
Emerging Markets Business at a glance Amongst the leading Indian Companies in Emerging Markets Global footprint • Presence in about 80 markets • Romania, Russia, South Africa, Brazil, Mexico and complementary Focus Markets & affiliated markets Product Portfolio • Extensive basket of branded products
Slide 31: Rest of World (Western Europe, Canada, Japan, ANZ, Israel & Other Markets)
Rest of World (Western Europe, Canada, Japan, ANZ, Israel & Other Markets) 14% of Revenues 31
Slide 32: Rest of World Markets at a glance
Rest of World Markets at a glance Amongst the leading Indian Companies • Across all major markets in Western Europe, Canada, A&NZ, Market Presence Japan, Israel and other markets • Expanding basket of products including specialty brands, Product Portfolio injectable & hospital products as well as pr
Slide 33: Global Consumer Healthcare Business
Global Consumer Healthcare Business 33
Slide 34: Global Consumer Healthcare Business at a glance
Global Consumer Healthcare Business at a glance An Attractive Opportunity India • Amongst the top 10 consumer healthcare companies Global Presence • Presence in about 20+ countries • Romania, Russia, South Africa, Nigeria, Myanmar, Ukraine, Poland, Focus Markets Thailand, Belarus, Kazakhstan, Nepal,
Slide 35: Active Pharmaceutical Ingredients (API) Business
Active Pharmaceutical Ingredients (API) Business 5% of Revenues 35
Slide 36: API Business
API Business Backward Integration – Strategic Importance • Backward integration provides cost competitiveness and supply Strategic Importance reliability Customers • Large generic and innovator companies Product Portfolio • Approximately 370 APIs Pipeline Development • Approx. 20-30 APIs scaled up a
Slide 37: Research & Development
9 SUN PHARMA Research & Development 37
Slide 38: Research & Development
Research & Development Cumulative R&D Spend of ~Rs. 219 billion to date • R&D spend at 5.8% of sales for FY22 R&D Spend • Strong cash flows & large scale to support R&D investments • Capabilities in finished dosage development, biological support, Capabilities chemistry and new drug development • Ap
Slide 39: R&D Investments
R&D Investments R&D Investments Filings and Approvals 8.6% 6.9% 6.1% 6.5% 5.8% ANDA NDA/BLA DMF/CEP Patents** 604 67 488 2,458 22.5 22.2 21.5 19.8 19.8 515 54 374 1,556 FY18 FY19 FY20 FY21 FY22 Filed Approved Filed Approved Filed Approved Filed Granted ** Excludes Expired/Abandoned Patents R&D Inves
Slide 40: Global Manufacturing Presence
Global Manufacturing Presence 40
Slide 41: Global Manufacturing Presence
Global Manufacturing Presence World Class Manufacturing Infrastructure • 43 manufacturing facilities across India, the Americas, Asia, Africa, Extensive Global Footprint Australia and Europe • Vertically integrated network across six continents enabling high Integrated Network quality, low cost and
Slide 42: Manufacturing Facilities
Manufacturing Facilities 43 manufacturing sites • Formulation • India : 15, US : 3 • Canada, Japan, Hungary, Israel, Bangladesh, South Africa, Malaysia, Romania, Egypt, Nigeria and Russia : 1 each • Capacities available for a variety of finished dosages • API • India : 9, Australia : 2, Israel : 1,
Slide 43: Corporate Governance
Corporate Governance Our philosophy on corporate governance envisages working towards high levels of transparency, accountability and consistent value systems across all facets of operations Chairman Israel Makov Former President & CEO of Teva Pharmaceutical Ind. Ltd. (Retired from board of Sun Phar
Slide 44: Financials
9 SUN PHARMA Financials 44
Slide 45: Financials
Financials Market Capitalisation Rs. 2,098 billion / US$ 26 billion (as of 15th Sept 2022) ( All Figures in Rs. Mn ) FY18 YoY FY19 ** YoY FY20 YoY FY21 YoY FY22 YoY P&L Summary Sales 260,659 -14% 286,863 10% 323,252 13% 332,331 3% 384,264 16% Gross Profit 186,413 -16% 208,173 12% 230,947 11% 245,430
Slide 46: Sales Break-up
Sales Break-up In Rs Billion Sales 261 287 323 332 384 21 55 21 20 45 49 18 67 15 35 30 55 58 54 48 114 105 101 87 107 128 97 103 80 73 FY18 FY19 FY20 FY21 FY22 India Formulations US Formulations Emerging Markets Rest of World API+Others 46
Slide 47: EBITDA Trend
EBITDA Trend In Rs Billion Sales 261 287 323 332 384 % of Sales 28.5% 27.4% 28.6% 26.1% 26.9% 20.6% 20.8% 19.7% 20.6% 19.0% 28.5% 28.0% 31.0% 30.8% 31.8% 25.3% 26.9% 21.2% 21.7% 21.3% FY18 FY19 FY20 FY21 FY22 EBITDA Other Expenditure Personnel Costs Material Costs 47
Slide 48: Cash Flow & Debt
Cash Flow & Debt Net Cash From Operating Activities (Rs. Bn) Free Cash Flow (Rs. Bn) 89.8 74.9 65.5 61.7 50.1 50.0 39.1 22.0 19.5 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 -10.2 Gross Debt (Rs. Bn) Net Cash (Excluding Debt) (Rs. Bn) 149.2 103.6 104.8 82.2 103.0 69.5 35.2 45.0 34.7 9.3 FY18 F
Slide 49: Financial Ratios
Financial Ratios FY18 FY19 ** FY20 FY21 FY22 Growth (%) Sales (13.9) 10.1 12.7 2.8 15.6 Gross Profit (15.8) 11.7 10.9 6.3 14.4 EBITDA (44.4) 12.5 10.8 21.5 22.5 Net Profit (69.9) 27.2 41.3 (22.9) 12.7 # # # # Net Profit (Adjusted) (52.6) 17.5 3.8 47.4 # 29.3 Margins (%) Gross Margin 71.5 72.6 71.4 7
Slide 50: Key Financials Q1 FY23
Key Financials Q1 FY23 ( All Figures in Rs. Mn ) Q1 FY23 Q1 FY22 CHANGE FY22 FY21 CHANGE Gross Sales 106,440 96,694 10.1% 384,264 332,331 15.6% Gross Profit 77,438 70,200 10.3% 280,749 245,430 14.4% Gross Margin 72.8% 72.6% 73.1% 73.9% EBITDA 28,844 28,211 2.2% 103,977 84,914 22.5% EBITDA Margin 26.
Slide 51: Sales Breakup Q1FY23
Sales Breakup Q1FY23 ( All Figures in Rs. Mn ) Q1 FY23 Q1 FY22 CHANGE FY22 FY21 CHANGE Formulation India 33,871 33,084 2.4% 127,593 103,432 23.4% US 32,437 28,000 15.8% 113,737 100,921 12.7% Emerging Markets 18,911 16,053 17.8% 67,432 57,840 16.6% ROW # 14,678 13,680 7.3% 54,545 48,956 11.4% Sub-tot
Slide 52: Key Milestones targeted for future
Key Milestones targeted for future • Enhance share of specialty/branded business US Business • Continue to focus on complex generics and high entry barrier segments • Ensure broad product offering to customers across multiple dosage forms • Focus on productivity enhancement India • Maintain leadersh
Slide 53: Key Milestones targeted for future
Key Milestones targeted for future • Unwavering focus on Sustainability, built on a legacy rooted in caring for people, communities and the planet. Sustainability • Committed to Governance, Community Upliftment, Access to Affordable Healthcare & Environment Conservation • Focus on developing complex
Slide 54: Sun Pharma at a glance
Sun Pharma at a glance 4th Largest Global Specialty Generic Company* US • Ranked 8th in US Generics Market## India • No. 1 Pharma Company in India • Amongst the largest Indian Pharma Company in Emerging Emerging Markets Markets Rest of World Markets • Expanding presence in Rest of World markets Manu
Slide 55: Thank You
Thank You! For more information please contact: Investors: Thank You Nimish Desai Tel : +91 22 4324 4324, Ext 2778 Tel Direct +91 22 4324 2778 nimish.desai@sunpharma.com Corporate Address: SUN HOUSE, CTS No. 201 B/1, Western Express Highway, Goregaon (E), Mumbai 400063 © 2017 Sun Pharmaceutical Indu
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