Mankind Pharma Ltd. · NSE:MANKIND
Mankind Pharma — Investor Presentation (September 2024)
41 slides from Mankind Pharma's investor presentation, Sep 2, 2024
Slide 1: Intimation under Regulation 30 to stock exchanges
Date: September 02, 2024 BSE Limited National Stock Exchange of India Limited P J Towers, Exchange Plaza, C-1, Block G, Dalal Street, Bandra Kurla Complex, Mumbai – 400 001 Bandra (E), Mumbai – 400 051 Script Code: 543904 Symbol: MANKIND Dear Sir/ Madam, Subject: Intimation under Regulation 30 of th
Slide 2: Investor Presentation - Key Credit Highlights
MANKIND PHARMA LIMITED INVESTOR PRESENTATION - Key Credit Highlights Sep’24
Slide 3: Safe Harbour Statement
Safe Harbour Statement The statements, are as on date and may contain forward-looking statements like the words “believe”, “expects”, “anticipate”, “aim”, “will likely result”, “would”, “will continue”, “contemplate” “intends”, “plans”, “estimates”, “seek to”, “future”, “objective”, “projects”, “goa
Slide 4: Index
Index Key Credit Highlights C • Consistent outperformance with financial prudence • Uniquely positioned in high growth domestic market • Highly diversified business with multiple derisking levers in place • State-of-the-art manufacturing and R&D capabilities A Company Overview • Robust Corporate Gov
Slide 5: Company Overview
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Slide 6: Mankind Pharma – History and Key Milestones
Mankind Pharma – History and Key Milestones Sustained Improvement in Domestic Formulations Market Share and Ranking Market Share 4th 8th Rank Rank 4.4% 4.1% 3.3% 1995 2004 2007-10 2012 2015 2018 2020-21 2022 2023 2024 Acquired1 100% stake in BSV Limited Successfully listed Commenced Entered chronic
Slide 7: Mankind Pharma – at a Glance
Mankind Pharma – at a Glance • Commenced operations in 1995, Mankind Pharma Limited is India’s 4th Business Snapshot (FY24) largest pharmaceutical company by domestic sales, and 2nd largest in terms of sales volume INR 10,335 Cr INR 2,550 Cr 24.7% • The company is engaged in developing, manufacturin
Slide 8: Execution Excellence led by Core Competencies
Execution Excellence led by Core Competencies Quality Affordability Accessibility Execution Excellence Volume-led Growth driven Expanding reach through driven by people-centric Focus on Quality by Affordability Deeper Penetration culture Consistently outperform 75% in-house 16,000+ Field Force Affor
Slide 9: Disruption Led Growth Journey
5 Stage Journey Acquired Panacea portfolio Disruption Led Growth Journey Creating High Entry Barrier 5. Innovative products for super Specialty 4. Expansion to DMs and KOLs Acquired1 BSV with a complex high entry 3. Chronic Share Launched 10+ new barrier portfolio specialty divisions 2. Brand Mank
Slide 10: Strategy Going Ahead
Strategy Going Ahead Increase the value of prescriptions in existing markets of strength by expanding market coverage; CVM moved from 62% in FY21 to 69% in FY24 Increasing share of chronic segment by growing presence in existing therapies (Diabetes - Insulin Glargine, Respiratory – Inhalers) and exp
Slide 11: Acquisition Overview & Rationale
Acquisition Overview & Rationale Restricted - External
Slide 12: Transaction Overview
Transaction Overview Transaction Summary BSV is a Leading Branded Specialty Pharma Platform in Women’s Health and Critical care with huge BSV Overview opportunity in both India and International Markets Mankind to acquire1 100% stake in BSV Enterprise value of approx. INR 13,630 Cr Transaction
Slide 13: BSV: At a Glance
BSV: At a Glance BSV: Full Coverage in Women Healthcare World’s 1st & Only Big Domestic Brands1 Anti Rho(D) Recombinant Antibody INR 100cr+: 1 Fast Growing & Comprehensive India’s 1st INR 50-100cr: 3 Fertility Portfolio Anti thymocyte Ig, r-FSH, High Pure HMG and INR 25-50cr: 8 r-HCG 76% | 55% 23% |
Slide 14: High Entry Barrier Portfolio - Limited Competition
High Entry Barrier Portfolio - Limited Competition BSV Market Share – Domestic (FY24) 100% 100% 98% Women Health Fertility Critical Care/Ig 44% 37% 28-30% 24% Anti-D / Rhoclone Thymogam ASVS Hucog Humog Luprodex Foligraf BSV Position 1 1 1 1 1 2 2 FY24 Sales (In INR cr) 179 32 41 63 55 37 35 FY21-24
Slide 15: BSV: Comprehensive Portfolio with Strong Moats in Fast-Growing Industry
BSV: Comprehensive Portfolio with Strong Moats in Fast-Growing Industry BSV: Full Coverage in Women Healthcare Fertility Pregnancy Post-Pregnancy Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 u-FSH/HP FSH u-HMG/HP HMG u-HCG/HP HCG Gonadotropins r-FSH Very Few r-HCG
Slide 16: Leadership in WH (#1 in Gynae) Led by Complementary Portfolio
Leadership in WH (#1 in Gynae) Led by Complementary Portfolio #1 Player in Indian Gynaecology Market (INR 10,858 cr) Complementary Therapies2 Market Select Therapies Mankind BSV 13% 9% 7% 6% 5% 4% 4% 6% 1 Share % Women Health Rx PPPP PP 1 Women Health Specialty PPP PPPP Critical Care P PP Fertility
Slide 17: BSV: Specialty Branded Portfolio in International Markets
BSV: Specialty Branded Portfolio in International Markets Revenues $77m International Business Revenue1 (FY21-24 Revenue CAGR - 25% in cc terms) Geographic 2 Home Markets Established – • ASEAN • MENA Spread Philippines and Malaysia • LATAM • RCIS Brands and Focused presence across Increasing focus o
Slide 18: BSV's acquisition to add super specialty portfolio
BSV’s acquisition1 to add super specialty portfolio Mankind Pharma Domestic From mass market to consumer to specialty chronic Mass Market Specialty Chronic (Acute/ Chronic / Semi (Cardio / Diabetes / CNS) Consumer Healthcare (OTC) BSV - Super Specialty Chronic) ~INR 1,723 Cr/28% 28% / 36% ~INR 706cr
Slide 19: Sales Mix with Strong EBITDA Margins is Favorable for Mankind
Sales Mix with Strong EBITDA Margins is Favorable for Mankind FY24 Pro-forma company INR cr Revenue 10,335 1,723 12,058 (y-o-y Growth) +18% +20% International 8% International International 46% 13% Revenue Mix % Domestic Domestic Domestic 54% 87% 92% Brand Families (>INR 50cr) 40 10 50 EBITDA 2,550
Slide 20: Key Credit Highlights
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Slide 21: Key Credit Highlights
Key Credit Highlights Experienced Board of Directors leading Consistent with transparency and accountability Robust Net cash of INR 3,747 Cr with consistent CFO/ outperformance and operating with integrity and ethics Corporate EBITDA ratio in excess of 80% as of Jun-24 with financial Governance prud
Slide 22: Resilient and Profitable Growth Trajectory
1 Resilient and Profitable Growth Trajectory Revenue (INR Cr.) Gross Margin (INR Cr.) and Margin % 68% 71% 69% 67% 70% 72% 15% CAGR 10,335 7,125 8,749 5,836 7,782 5,360 4,434 5,865 6,214 3,987 2,893 2,081 FY20 FY21 FY22 FY23 FY24 Q1 FY25 FY20 FY21 FY22 FY23 FY24 Q1 FY25 EBITDA (INR Cr.) and Margin %
Slide 23: And disciplined financial prudence
1 . . . And disciplined financial prudence . . . ROE* ROCE* Net Cash (INR crore) Historically the company has been Net Cash Positive Dip on account 3,747 of acquisition 3,260 44% Dip on account 41% of acquisition 34% 50% 50% 29% 29% 23% 1772 31% 34% 34% 1,366 25% 958 412 FY20 FY21 FY22 FY23 FY24 Q1'
Slide 24: While consistently outperforming the IPM and IPM Chronic
1 . . . while consistently outperforming the IPM and IPM Chronic. . . Continued outperformance to IPM driven by Volume Led Strategy 18% 18% 4% 4% 10% 13% 9% 11% 11% 11% 5% 4% 3% 2% 5% 8% 8% 8% 3% 3% 3% 4% 7% 4% 2% 3% 6% 5% 5% 9% 10% 5% 3% 6% 4% 6% 5% 2% 4% 4% 3% 2% 2% 1% -1% 0% FY20 (4%) FY21 FY22 F
Slide 25: Led by outperformance in key therapeutic areas
1 . . . Led by outperformance in key therapeutic areas . . . High Ranks across Acute and Chronic Areas Revenue Share Rank in CVM FY 20-24 CAGR Key Therapy Areas (FY24) (FY24) Mankind IPM Chronic therapies 36% 4 15% 11% Acute therapies 64% 2 11% 9% Overall 100% 2 12% 9% Significant outperformance in
Slide 26: Uniquely positioned with strong focus on domestic business
2 Uniquely positioned with strong focus on domestic business. . . Segmental Break Up – FY24 Consistent Growth in Domestic Revenues 8% 7% (₹ Crore) 16.5% CAGR 10,000 9,522 8,453 Overall revenue 7,595 INR 9,522 Cr. 7,500 INR 10,335 Cr. 6,029 5,000 2,634 93% 2,500 92% 0 Pharmaceuticals FY21 FY22 FY23 F
Slide 27: Track record of building & scaling-up brands
2 . . . with demonstrated track record of building & scaling-up brands . . . Brand Families FY 20 FY 24 > INR 50 Crore 29 40 > INR 100 Crore 13 23 > INR 200 Crore 7 11 New brands added in FY24 >INR 50 Cr revenue New brands added in FY24 >INR 100 Cr revenue INR 100+ crore brands families have increas
Slide 28: Supported by increase in volume share
2 . . . Supported by increase in volume share . . . Key Performance Highlights FY18 FY19 FY20 FY21 FY22 FY23 FY24 Volume Share in IPM (%) 4.8 5.1 5.2 5.7 5.5 5.7 5.8 Value Growth YoY in IPM (%) 11.3 12.6 12.5 11.1 17.7 10.6 8.5 Market Share by Value in IPM (%) 3.9 4.0 4.1 4.3 4.3 4.4 4.4 Market Rank
Slide 29: Differentiated marketing strategy with leading OTC brands
22 . . . with Differentiated marketing strategy with leading OTC brands Strategically selected national and regional brand ambassadors Corporate Brand Ambassadors Dominant Brands Consumer Healthcare Brand Ambassadors #1 Condom Brand Kartik Aaryan Sunny Leone Market Share – 30% #1 Anushka Kajal Sraba
Slide 30: Diversified business model with multiple derisking levers
3 Diversified business model with multiple derisking levers in place . . . Diversified Therapy Presence With increasing share of revenues from chronic therapies Anti-Infectives 9% 13% Cardiovascular 3% 36% 5% Gastro Intestinal Top 5 Respiratory 6% 28% contributing 15% Anti Diabetic just 57% of 6% VM
Slide 31: Pan-India diversified coverage of doctors and field force
3 . . . With a Pan-India diversified coverage of doctors and field force . . . With vast coverage of doctors and field force And diversified sales across zones and regions North: 35% Zone Wise Sales West: 23% As of FY24 South: 23% East: 19% +16,000 13,000+ 75 5+ lakhs Rural Metro Medical Stockists C
Slide 32: With Brands across Business Verticals
3 . . . With Brands across Business Verticals . . . Highest Selling Key Consumer Domestic Formulations Healthcare Brands Brands BSV’s Super Specialty Portfolio 31 Restricted - External
Slide 33: Expanding to Specialty Products Portfolio Inorganically also
3 . . . And Expanding to Specialty Products Portfolio Inorganically also . . . Reference Brand Launched Market 5 Therapy Area Indication Market Size Rationale (Year) (INR Cr) Year CAGR # (2023) • Neptaz – In-licensed from Novartis. Strong Revenue and Volume Heart Failure 6261 21% growth. Ranks in th
Slide 34: State of the Art Manufacturing and R&D facilities
4 State of the Art Manufacturing and R&D facilities 75% in-house manufacturing has enabled more control over quality, delivery timelines, and Supply Chain Management Paonta Sahib, Himachal Pradesh Manufacturing Unit I: Vials, Ampoules Limited Local Shree Jee Laboratory Manufacturing Unit II: Tablet,
Slide 35: Robust Corporate Governance
5 Robust Corporate Governance Experienced Board of Directors leading with transparency and Profile of Independent Directors accountability and operating with integrity and ethics Work experience Mr. Surendra Lunia serves as an Independent Director of the Company 1 5 and has been with the Company sin
Slide 36: Experienced Promoter Group and Senior Management
5 Experienced Promoter Group and Senior Management Seasoned Whole Time Directors Mr. Ramesh Juneja Mr. Sheetal Arora Chairman & Whole Time Director Chief Executive Officer & Whole Time Director • Founder of Mankind Group with over 33 years of experience in the pharmaceutical industry • Over 25 years
Slide 37: Appendix
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Slide 38: Q1 FY25 - P&L Highlights
Q1 FY25 - P&L Highlights YoY QoQ YoY INR Crore Q1FY25 Q1FY24 Q4FY24 FY24 FY23 Growth Growth Growth Revenue from Operations 2,893 2,579 12.2% 2,441 18.5% 10,335 8,749 18.1% (A=B+C) Domestic Business (B) 2,634 2,419 8.9% 2,174 21.2% 9,522 8,453 12.6% i. Domestic Business (ex CH) 2,428 2,211 9.8% 2,018
Slide 39: Reference Documents
Reference Documents Annual Report FY24 BSV Presentation Q1FY25 Presentation Investor Presentation Aug’24 38 Restricted - External
Slide 40: Annexures
Annexures • ROE = (Profit for the year) / (average total equity less cash) o Profit excludes interest income and gain on current investments measured at FVTPL • Adjusted ROE = (Adjusted profit for the year) / (average adjusted total equity less cash) o Profit excludes any M&A related impact, interes
Slide 41: Thank You
Thank You For more information please visit our website: https://www.mankindpharma.com For specific queries, contact: Abhishek Agarwal Investor Relations – 011 – 46846700 Ext. 3532 Investor.relations@mankindpharma.com
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