Concord Biotech Ltd. · NSE:CONCORDBIO
Concord Biotech — Q1 FY2024 Earnings Presentation
38 slides from Concord Biotech's earnings presentation, Sep 6, 2023
Slide 1: Intimation of Investor Presentation for period ended June 30, 2023
CONCORD BIOTECH LIMITED B-1601-1602, B-wing Mondeal Heights, Iskcon Cross Road, S. G. Highway, Ahmedabad-3800015, Gujarat. Phone : +91-79-68138700 Fax : +91-79-68138725 CIN No.: U24230GJ1984PLC007440 Email ID: complianceofficer@concordbiotech.com -------------------------------------------------------
Slide 2: Investor Presentation – September 2023
` Concord Biotech Limited Investor Presentation – September 2023
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Concord Biotech Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any secur
Slide 4: About Concord Biotech
About Concord Biotech Concord Biotech Limited is a R&D driven biopharma Company that manufactures Active Pharmaceutical Ingredients (API) through fermentation & semi-synthetic process and finished formulations. Fermentation-based API R & D Capabilities Competent Management Among few companies global
Slide 5: Our Journey
Our Journey Received ANDA approvals for our formulation products Expansion in critical care First EU GMP segment in India. Acquisition by our First USFDA inspection at Third EU GMP inspection inspection of Unit I, First shipment of finished promoter Mr. Sudhir Vaid Unit II, Valthera and Japan PMDA a
Slide 6: Concord Biotech Business Snapshot
Concord Biotech Business Snapshot Product 23 128+ 20%+ Portfolio Fermentation- based Market Share by APIs API DMF’s Volume in 5 Molecules Infrastructure 1250m3 3 ~802 mn Total Installed Manufacturing facilities Units Formulation Fermentation Capacity located at Dholka, Valthera Capacity and Limbasi
Slide 7: Overview of API Business
Overview of API Business One of the leading global developers and manufacturers of Fermentation- Revenue Contribution based APIs 11% 18% Focus on Niche Fermentation API’s with backward integration to KSM FY21 FY23 82% 89% Portfolio primarily includes immuno- suppressant, Oncology, Anti-Infectives AP
Slide 8: Overview of Formulation Business
Overview of Formulation Business Commercialization of Formulations segment in 2016 to capitalize on the Revenue Contribution benefits of backward integration 11% 18% Operate through B2B model across regulated and emerging markets FY21 FY23 For India Market, operate via B2B & B2C model 82% 89% Curren
Slide 9: State-of-the-art Manufacturing Facilities
State-of-the-art Manufacturing Facilities Unit I (API) – Dholka, Gujarat Unit II (Formulations) – Valthera, Gujarat Unit III (API) – Limbasi, Gujarat + Upcoming Injectable Facility • Operations commenced in year 2000 • Operations commenced in year 2016 • Operations commenced in year 2021 • Spread ac
Slide 10: Strong R&D Capabilities
Strong R&D Capabilities R&D Initiatives: Increasing Investments in R&D (in Crores) New Product Development Technology Transfer 30 26 148 Cost Improvement Scale-up Initiatives 13 R&D Employee Strength Enhancement of Backward Process Improvement Integration FY21 FY22 FY23 > 128 Expansion in oncology a
Slide 11: Diversified Customer Base
Diversified Customer Base Concord Biotech’s Customer Profile Only supplier of complete portfolio of fermentation based Immuno-suppressant API’s 70+ Countries Niche basket of fermentation- based API’s in Oncology Anti Infectives & Anti Fungal 200+ Customers FY20 FY21 FY22 FY23 Reducing Customer Conce
Slide 12: Board of Directors
Board of Directors Sudhir Vaid Ankur Vaid Chairman & Managing Director Joint Managing Director & CEO • An MSc from Punjab Agricultural University • An MBA from Rochester Institute of Technology, with more than 15 years in the • Previously associated with Ranbaxy Laboratories, Lupin Chemicals & was c
Slide 13: CSR at Concord
CSR at Concord Education Installed e-smart classes in schools of neighboring villages; Scholarships to economically backward students studying in IITs Healthcare Preventive healthcare, through awareness programs, health check-ups and medicine & treatment facilities Corporate Social Responsibility Sp
Slide 14: Key Business Differentiators
Concord Biotech Limited Key Business Differentiators
Slide 15: Key Differentiators
Key Differentiator’s Market Leader in fermentation based Immuno- Strong Presence across suppressant API’s Strong & Consistent Fermentation value chain & Financial Track Record Focus on niche complex fermentation API’s across multiple therapeutic areas High Entry Barriers Wide product portfolio of Ut
Slide 16: Complex Fermentation Process Overview
1a. Complex Fermentation Process Overview Fermentation is a complex & challenging process, as it involves working with microbial strains and culture, controlling multiple process & performing various purification steps Vial Purification Flask Extraction/ Filtration Polishing Production Bioreactor Ha
Slide 17: Strong Presence Across Complex Fermentation Value Chain
1b. Strong Presence Across Complex Fermentation Value Chain Over 2 Decades Experience in the industry with a demonstrated track 1250 M3 record of developing niche and complex molecules Fermentation Capacity across two API facilities 02 03 23 Fermented based API’s One of leading global developers and
Slide 18: Creating Significant Entry Barriers
2. Creating Significant Entry Barriers Significant Complex technical capabilities, difficulties in scaling up operations and substantial capital investment Entry Barriers required have resulted in significant barriers to entry in the fermentation-based API space Complex Process & Technical 01 Portfo
Slide 19: Wide Spectrum of Niche Fermented APIs
3a. Wide Spectrum of Niche Fermented API’s Molecules* US EU Canada Japan China Tacrolimus ✓ ✓ ✓ ✓ ✓ Suppressants Mycophenolate Mofetil ✓ ✓ ✓ ✓ ✓ Immuno- Mycophenolate Sodium ✓ ✓ ✓ ✓ Cyclosporine ✓ ✓ ✓ ✓ ✓ Sirolimus ✓ ✓ ✓ Anti-Bacterial Mupirocin ✓ ✓ ✓ ✓ Mupirocin Calcium ✓ ✓ ✓ Vancomycin Hydrochlori
Slide 20: Market Leadership across Key APIs
3b. Market leadership across Key API’s Market Leader in fermentation based Immuno-suppressant API’s & Focus on Niche complex fermented based API’s across multiple therapeutic areas Concord’s Market Share by Molecules Market Size* DMF Fillings Volume Tacrolimus ~US$ 3 bn 40%+ Immuno-Suppressants Cycl
Slide 21: Formulation Product Portfolio for India Markets
3c. Wide Range of Formulation Product Portfolio for India Markets Critical Care Nephrology Antifungals Transplant & Immunology • Amfoterol™ • Vorixia™ • Tacrocord • Cyclograf • Anicord™ • Picocord • Mofecon • Valocon • Caspocon™ GRTM • Evercon • Conimab • Micacord™ • Conimune ME Antibiotics Chronic
Slide 22: Formulation Product Portfolio for Overseas Markets
3d. Wide Range of Formulation Product Portfolio for Overseas Markets Regulated Markets Emerging Markets Product Name ANDA Approval Product Name Mycophenolate Mofetil Capsules Mycophenolate Mofetil Capsules Mycophenolate Mofetil Tablets Mycophenolate Mofetil Suspension Mycophenolic Acid DR Tablets US
Slide 23: Consistent Financial Track Record
4. Consistent Financial Track Record Revenue (Rs. in Crs) EBIDTA*^ (Rs. in Crs) Profit after Tax* (Rs. in Crs) 53.0% 37.8% 40.5% 38.1% 24.5% 28.1% 853 713 617 327 345 235 240 270 174 FY21 FY22 FY23 FY21 FY22 FY23 FY21 FY22 FY23 ROCE* (%) ROE* (%) Debt to Equity 28.9% 23.5% 0.09 24.6% 18.6% 21.2% 15.
Slide 24: Utilizations & Capex to Drive Future Growth
5. Utilizations & Capex to Drive Future Growth Installed Capacity Installed Capacity Installed Capacity Unit I – Dholka Unit II – Valthera Unit III – Limbasi 450m3 802mn 800m3 75% 10% 32% Capacity Utilization in FY23 Capacity Utilization in FY23 Capacity Utilization in FY23 Increasing Capacity Foray
Slide 25: Key Growth Drivers
Key Growth Drivers API Marketing existing APIs to Increasing wallet share with Expanding API Portfolio new customers existing customers Formulations Expanding portfolio through own Launching new dosage forms Expanding geographic reach development & in-licensing including injectables in India, EMs an
Slide 26: Industry Overview
` Industry Overview
Slide 27: Global API Market Overview
Global API Market Overview Global API Market Market Drivers +6% 280 Increasing prevalence of chronic diseases and improving diagnosis rates 211 Fast-growing pharmaceutical sector in emerging markets with advancing healthcare infrastructure and economic prosperity Increasing availability of low-cost
Slide 28: Global Fermentation API Market Overview
Global Fermentation API Market Overview Large Global Small Molecule Market Split by Volume (3) Market Split For Key Therapies By Volume(1) Fermentation API Market +5% 56,432 17% 45,068 15,769 30% $11bn Market Size(1) 44% 13,359 Innovator 83% 40,663 Generic 70% 31,709 56% Key Focus Areas 45,068 Marke
Slide 29: Global Formulations Market Overview
Global Formulations Market Overview Global Immunosuppressant Drug Market(1) (In $bn) • Sedentary and unhealthy lifestyles are leading causes for organ failure 160 +11% • Organ transplants projected to increase from 105K in 2021 to 169K in 2026E (10.1% Immuno- CAGR) (3) 101 suppressants • Immunosuppr
Slide 30: Key Financial Highlights
` Key Financial Highlights
Slide 31: Q1FY24 Key Consolidated Financial Highlights
Q1FY24 Key Consolidated Financial Highlights Revenue (Rs. in Crs) EBIDTA* (Rs. in Crs) PAT (Rs. in Crs) +8% +10% +11% 194.8 78.2 54.5 181.0 70.8 49.3 Q1FY23 Q1FY24 Q1FY23 Q1FY24 Q1FY23 Q1FY24 Gross Profit Margin (%) EBIDTA Margin* (%) PAT Margin (%) +90 bps +100 bps +80 bps 78.4% 79.3% 39.1% 40.1% 2
Slide 32: Q1FY24 Key Operational Highlights
Q1FY24 Key Operational Highlights 14% 16% Segmental Revenue Q1FY23 Q1FY24 86% 84% API Formulation Geography Wise Revenue 44% 46% Q1FY23 Q1FY24 54% 56% Domestic Exports 31
Slide 33: Q1FY24 Consolidated Profit & Loss Statement
Q1FY24 Consolidated Profit & Loss Statement Profit and Loss (Rs. in Crs) Q1FY24 Q1FY23 Y-o-Y Revenue from Operations 194.8 181.0 8% Operating Expenses 40.4 39.2 Gross Profit 154.4 141.8 9% Gross Profit Margin 79.3% 78.4% 90 bps Employee Cost 28.3 25.2 Other Expenses 54.0 52.0 Reported EBITDA 72.2 64
Slide 34: Historical Consolidated Profit & Loss Account
Historical Consolidated Profit & Loss Account Profit and Loss (in Rs. Crs) FY23 FY22 FY21 Revenue from Operations 853.2 712.9 616.9 Cost of Goods Sold 180.2 164.0 111.6 Gross Profit 673.0 548.9 505.4 Gross Profit Margin 78.9% 77.0% 81.9% Employee Cost 110.3 95.7 69.5 Other Expenses 219.4 180.0 108.4
Slide 35: Historical Balance Sheet Statement
Historical Balance Sheet Statement Assets (in Rs. Crs) Mar-23 Mar-22 Mar-21 Equity & Liabilities (in Rs. Crs) Mar-23 Mar-22 Mar-21 Non - Current Assets 786.3 680.1 575.4 Total Equity 1,290.0 1,103.2 999.4 Property Plant & Equipment's 592.5 568.0 537.6 Share Capital 10.5 9.5 9.5 CWIP 172.7 74.2 17.9
Slide 36: Historical Abridged Cashflow Statement
Historical Abridged Cashflow Statement Particulars (in Rs. Crs) Mar-23 Mar-22 Mar-21 Net Profit Before Tax 322.0 237.5 312.7 Adjustments for: Non -Cash Items / Other Investment or Financial Items 46.6 52.8 18.0 Operating profit before working capital changes 368.6 290.3 330.8 Changes in working capi
Slide 37: Delivering Value to Stakeholders
Delivering Value to Stakeholders 18th August 2023 ✓ Concord Biotech Limited got listed on BSE & NSE ✓ Offer for sale of up to 20,925,652 Equity shares ✓ Objects of the Issue : • Offer For Sale of 20.9mn shares by investor Helix Investment which would mark its complete exit. 36
Slide 38: For further Information, please contact
For further Information, please contact Concord Biotech Limited Investor Relations Advisors Concord Biotech Limited Strategic Growth Advisors Private Limited CIN: L24230GJ1984PLC007440 CIN: U74140MH2010PTC204285 Mr. Lalit Sethi – Chief Financial Officer Mr. Jigar Kavaiya / Mr. Sagar Shroff lalitseth