Zydus Lifesciences Limited · NSE:ZYDUSLIFE
Zydus Lifesciences — Cadila Healthcare — J.P. Morgan 39th Annual Healthcare Conference (January 2021)
38 slides from Zydus Lifesciences's conference presentation, Jan 12, 2021
Slide 1: Exchange filing cover letter for investor presentation
__________________________________________________________________________________ January 12, 2021 Listing Department Code: 532321 BSE Limited P J Towers, Dalal Street, Fort, Mumbai–400001 Listing Department Code: CADILAHC National Stock Exchange of India Limited Exchange Plaza, Bandra Kurla Comple
Slide 2: J.P. Morgan 39th Annual Healthcare Conference
J.P. Morgan 39th Annual Healthcare Conference Cadila Healthcare Ltd. I Dr. Sharvil Patel, MD | 12-Jan-2021 1
Slide 3: Context
Context 1 Zydus Corporate Overview 2 Strategic Growth Themes 22
Slide 4: Zydus – Corporate Overview
Zydus – Corporate Overview ~ 70 years $ 6.92 Bn1 ~$155 Mn 2 36 25000 + Business excellence Market cap R&D spend in FY20 Manufacturing facilities Employees Sales Split (FY20)2 Global Gx Business Global Branded Gx Wellness 6% 3%1% 1% 4th 5th 1st India 4% Largest pharmaceutical in 5 out of 7 product La
Slide 5: Context
Context 1 Zydus Corporate Overview 2 Strategic Growth Themes 44
Slide 6: Focusing on 4 strategic themes to drive future growth
is focusing on 4 strategic themes to drive its Focus on Key Geographies future growth Innovation Cost Optimization & Quality Digitalization 55
Slide 7: India formulation business crossed a milestone of $500 Mn
India formulation business crossed a milestone of $500 Mn which contributes ~27% of overall revenues 5th 4.2% Top 3 4th 1st NCE Key Geographies … largest pharma player …value market share … in Respiratory, Pain, … fastest growing amongst …launched in India by revenues* in India* Gynaecology, Nephrol
Slide 8: Strategic interventions and portfolio alignment in India formulation business
Strategic interventions and portfolio alignment in India formulation business, done recently; started yielding results in key TAs Cardio-Metabolic Gynecology Key Geographies Respiratory Oncology • 4 ranks gained in anti- • Zydus is 2nd largest player diabetic business • Maintained 3rd position in in
Slide 9: Launching a digital platform for doctors
Launching a digital platform for doctors to comprehensively meet their need…which will help Zydus driving medium to long term growth Doctors Engagement Platform Integrated Sales & Marketing Platform Key Geographies Next generation 1 2 3 telemedicine / practice Stimulate Create Drive business managem
Slide 10: Ongoing investments in brand building, portfolio and digital platforms
Ongoing investments in brand building, differentiated portfolio and digital platforms are the key to future growth of India business Key Geographies Long Term Priority Mid Term Priority • Innovation portfolio: Continue focusing on IP driven innovation Near Term Priority • Consolidation of core thera
Slide 11: Zydus Wellness has made big strides post acquisition of Heinz
Zydus Wellness has made big strides post acquisition of Heinz 5 38% Key Geographies 25+ brands as category 42 Mn+ 2 Mn+ Shareholder return Years of operations End consumer base Outlets reach market leader over 12 years (CAGR) Synergies with HIPL integration : The acquisition has provided an opportun
Slide 12: Strong focus on strengthening building growth momentum
Strong focus on strengthening building growth momentum Key Geographies Long Term Priority Mid Term Priority Near Term Priority • Expand business to new customers and • Leverage M&A to significantly grow scale geographies / channels • Accelerate growth of Brands • Open to bolt-on acquisitions at • Bu
Slide 13: Leadership position in the US generics space
Zydus has a leadership position in the US generics space and aspires to build a commercially attractive brand franchise in mid-term to long-term… 4.2% 230 Amongst top 3 190+ Key Geographies 4th … market share in terms of … in top 10 products … products launched … largest by Scripts in USA1 … highest
Slide 14: Building depth across complex generics and specialty portfolio in US
Building depth across Complex generics and Specialty portfolio to drive profitable growth in US • Zydus is strengthening innovative platforms to generate sustainable long term growth with major launches and a robust pipeline Key Geographies Long Term Priority Mid Term Priority Near Term Priority Gen
Slide 15: Focusing on value-centric portfolio
Zydus is focusing on “Value-centric portfolio” of a diverse mix of product categories Approved/Commercialized Filed/Under development Key Geographies (337 Products: $66 Bn Addressable Market size*) (254 Products: $119Bn Addressable Market size) 1% 1% 7% 8% 9% 10% 39% Innovation 11% 51% 16% 21% 26% C
Slide 16: Portfolio of complex generic injectable products for the US
Zydus is developing portfolio of complex generic injectable products, including drug device combination products for the US market Zydus US Key Geographies Robust portfolio with a mix of Day-1 / Injectable Portfolio 108 Products $27B Participative Market 181, Me too, complex generics and niche produ
Slide 17: Branded business strategy: orphan disease and specialty via 505(b)(2)
Zydus Branded business strategy: Dual focus on Orphan disease and Specialty portfolio through 505(b)(2) strategy to drive future growth Early- Stage Late- Stage Key Geographies Concept / Research: Pre-clinical / pIND Clinical study to NDA filing to Approval Commercialized Product 1: Sickle cell anem
Slide 18: Innovation engine fueled by centers of excellence
Zydus Innovation engine fueled by centers of excellence... In Mio USD Steady Investment in R&D Key Geographies R&D Cost % of net sales 150 8.2 8.1 7.4 7.4 7.9 10 NCE / NBE Research 8 Formulation Development 100 6 155 132 121 4 107 106 50 2 Innovation 0 0 FY16 FY17 FY18 FY19 FY20 1400+ Scientific Poo
Slide 19: NCEs & NBEs: Highlights and Focus Therapy Areas
NCEs & NBEs: Highlights and Focus Therapy Areas 4 NCEs Pipeline Key Geographies Project Target Indication Drug Discovery Lead Optimization Preclinical Dev. IND Phase I Phase II Phase III NDA Mkt NCEs in clinical development Anemia-CKD-ND/ D 10+ Desidustat HIF-PH inhibitor COVID-19 Chemo ind. anemia
Slide 20: PBC along with NASH expected to become multi-billion dollar market
PBC along with NASH is expected to become a multi-billion dollar market globally Key Geographies PBC / NASH Global USFDA grants Zydus fast track Market Opportunity designation for Saroglitazar to treat primary biliary cholangitis Year 2029 Innovation PBC: $10 Bn+ NASH: $27.2 Bn1 Zydus has become the
Slide 21: Saroglitazar Mg. in late phase studies for PBC & NASH
Saroglitazar Mg. is a novel dual PPAR α/γ agonist Zydus is evaluating in late phase studies for PBC & NASH Key Geographies Saroglitazar Mg. US development status Saroglitazar Mg’s efficacy and safety is supported by multiple • NASH – Ph2b application submitted to USFDA clinical trials and a wealth o
Slide 22: Desidustat will bring paradigm shift in CKD anemia
Desidustat will bring paradigm shift in the management of CKD patients with anemia Market Opportunity Key Geographies Desidustat Key milestones in 2019-20 ~$ 6 Bn • Desidustat is a novel, oral, hypoxia Global Renal anemia market by 2027 inducible factor prolyl hydroxylase • US drug regulator's appro
Slide 23: A Global Player in the evolving Biosimilars Space
A Global Player in the evolving Biosimilars Space… Key Geographies • No. 1 Player in Biosimilars space Near to Mid • 1st to enter and remain a strong player based on continuous cost Term Strategy improvements India • Creating 2 distinct set of Innovation portfolio • Partnering with regional leaders
Slide 24: Zydus has biosimilars in portfolio / pipeline
Zydus has 21 biosimilars in portfolio / pipeline Biosimilars launched since 2014 Zydus Biosimilar Pipeline Key Geographies 1. IFNα-2b Biosimilars Competitive Intensity 2. PEG-IFN 3. PTH Onco 1 Low 4. G-CSF Low Onco 2 5. PEGG-CSF Onco 3 Low Innovation 6. EPO > 7. Adalimumab Bone Health 1 Low 8. Trast
Slide 25: Zydus is an emerging player in the Vaccine space
Zydus is an emerging player in the Vaccine space 20+ years 5 300+ Key Geographies 12+ …of experience. started Manufacturing (3) and …dedicated scientists and Vaccine products in portfolio journey in 1998* R&D (2) Facilities* workforce* Market Opportunity Zydus Vaccine Portfolio Vaccine Platform Vacc
Slide 26: Affordable vaccines; 2-3 vaccines WHO pre-qualified by 2023
Zydus is dedicated to supply affordable vaccines to global markets, aims to get 2-3 vaccines WHO pre-qualified by 2023 Key Geographies WHO-PQ Market Value (2021 – 28) Advantage USD Mn $ 555 $ 557 • Among few WHO prequalified player in rabies vaccine $ 518 $ 527 $ 509 $ 487 $ 494 • Globally 2nd playe
Slide 27: COVID Portfolio: ZyCoV-D Vaccine
COVID Portfolio : ZyCoV-D Vaccine; A Novel Approach for COVID-19 Vaccine Development with favourable vaccine characteristics How DNA vaccine works? Why DNA Vaccines? Key Geographies DNA is inserted into human cells, which then churn out copies of the Strong antibody and cellular response coronavir
Slide 28: COVID Portfolio: PEGIHEP single dose therapy
COVID Portfolio : Single dose therapy of PEGIHEP showed greater viral load reduction, in mild to moderate COVID-19 patients Key Geographies Phase II • PEGIFN treated patients showed statistically significant viral Study reduction by RT-PCR on day 14. COVID-19 confirmed by RTPCR 95% Participants reco
Slide 29: COVID Portfolio: cocktail Mab approach
COVID Portfolio : Zydus has opted “cocktail” Mab approach which has market potential of over $6 Bn is set to hit market by Sep’2021 SARS-CoV-2 Infection Mechanism Mabs blocks virus to bind and infect Key Geographies Innovation Our quick development timelines and manufacturing capabilities ensure dru
Slide 30: COVID Portfolio: NCEs and NBEs targeting 3 stages
COVID Portfolio : NCEs and NBEs – Zydus has identified 5 novel programs that target 3 different stages of COVID-19 Key Geographies Innovation Cost Opt. Clinical Acute viral symptoms, Shortness of breath & Cytokine Storm that leads to multi-organ symptoms fever, muscle pain, cough hypoxia failure Nov
Slide 31: Cost Optimization through Operational Excellence
Cost Optimization through Operational Excellence (achieved 70-80 bps improvement in operating profit on a continuous basis) Key Geographies Journey So far Journey ahead Objective: To achieve excellence in manufacturing and Objective: To unlock next wave of efficiency and embed new quality operations
Slide 32: Operational Excellence (contd.)
Operational Excellence (contd.) Journey So far Journey ahead Key Geographies Objective: To drive improvement in COGS and achieve cost Reduction in-sourcing from china : excellence across various business verticals Outcome : Cumulative savings of $ 70 Mn over last 8 years • Captive (API Manufacturing
Slide 33: Leveraging digital platforms across functions and processes
Leveraging digital platforms in all the functions and processes to drive quality, productivity and operational efficiency… Key Geographies Innovation Cost Opt. Digitalization “Digital transformation is not an option, it’s a necessity” and we firmly believe this at Zydus 32
Slide 34: Shift in doctor's behavior driving digital innovation
Shift in doctor's behavior due to recent events…. driving digital innovation in our commercial & customer engagement model New Digital Operating model Key Geographies Key shifts in Doctors’s Behaviour Doctor – Zydus Interaction • 84% doctors adopted virtual • Engagement platform to cater to knowledg
Slide 35: Driving operational excellence through Digitalization
Driving operational excellence through Digitalization Journey So far Journey ahead Key Geographies Objective: Digitalization of end to end supply chain process for better visibility and improve decision making. Expected Outcome: Outcome: • Improvement in forecast accuracy and optimize • Projection o
Slide 36: Integrated Real-time Information System for new products
Integrated Real-time Information System for new products development and launch Key Geographies Objective and expected outcomes Objective: Create, update and track New Product Development (NPD) and New Product Launch (NPL) activities of Projects across various geographies. Innovation Expected Outcom
Slide 37: Thank You
Thank You
Slide 38: Disclaimer and Safe Harbor Statement
Disclaimer and Safe Harbor Statement • THIS PRESENTATION (PRESENTATION) IS NOT AN OFFER TO SELL ANY SECURITIES OR A SOLICITATION TO BUY ANY SECURITIES OF CADILA HEALTHCARE LIMITED OR ITS SUBSIDIARIES OR JOINT VENTURES (TOGETHER, THE “COMPANY”). The material that follows is a Presentation of general
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