Slide 1: Investor Presentation February 2011
Unichem Laboratories Limited UNICHEM Investor Presentation February, 2011 ©Unichem Laboratories Ltd 1
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation may include certain forward-looking statements and information that involve risks, uncertainties and assumptions based on current expectations, within the meaning of applicable laws and regulations. Forward-looking statements are all statements that concern pl
Slide 3: Agenda
Agenda 1. Profile & History 2. Growth & Profitability UNICHEM 3. Business Operations – Domestic Operations – International Operations – API Operations 4. Research & Development 5. Management & Governance 6. Financials ©Unichem Laboratories Ltd 3
Slide 4: Profile
Profile One of the India’s leading integrated Pharmaceutical Companies with a strong presence in domestic formulations market Ranked 25th in the Domestic Formulations market as per IMS : Dec-10 Amongst the top # 10 companies in representative (covered) market Domestic Operations contribute 75% Conso
Slide 5: History - Key Milestones
History - Key Milestones (Last 10 Years) USFDA certification USFDA of Goa Plant re-certification USFDA of Goa Plant & Joint Venture Launch of certification Roha Plant – Niche Specialties of Ghaziabad Generics Division Plant Sikkim Plant & UNICHEM Animal Restructuring Acquisition of
Slide 6: Agenda
Agenda 1. Profile & History 2. Growth & Profitability UNICHEM 3. Business Operations – Domestic Operations – International Operations – API Operations 4. Research & Development 5. Management & Governance 6. Financials ©Unichem Laboratories Ltd 6
Slide 7: Consolidated Financials: Growing Steadily & Focus on Profitability
Unichem Consolidated Financials {Rs. Crores} Growing Steadily & Focus on Profitability 2001-02 2003-04 2006-07 2008-09 2009-10 2010-11 Revenue YTD 2.5 + Fold Increase + 12% CAGR UNICHEM Op Inc 3.5 + Fold Increase + 18% CAGR Rev Op In Rev Op In Rev Op In Rev Op In Rev Op In Rev Op In Op Inc as % of R
Slide 8: Agenda
Agenda 1. Profile & History 2. Growth & Profitability UNICHEM 3. Business Operations – Domestic Operations – International Operations – API Operations 4. Research & Development 5. Management & Governance 6. Financials ©Unichem Laboratories Ltd 8
Slide 9: The Indian Pharma Market
The Indian Pharma Market Current Estimated Size of IPM is Rs. 46,781 Crores Market Growth MAT Jan – 16.2% 4 Year CAGR – 14%+ UNICHEM India ranks globally 3rd by volume and 14th by value Future growth projections vary from an optimistic 15% p.a. to tempered 12% p.a. IMS Prognosis Report 2
Slide 10: Revenue & Business areas break-up FY 2009-10
Revenue & Business areas break-up Consolidated – FY 2009-10 Revenue Break-up by Segment Rs. Crores Revenue Break-up by Region Rs. Crores UNICHEM ©Unichem Laboratories Ltd 10
Slide 11: Revenue & Business areas break-up YTD December 2010-11
Revenue & Business areas break-up Consolidated – YTD December, 2010 -11 Revenue Break-up by Segment Rs. Crores Revenue Break-up by Region Rs. Crores UNICHEM ©Unichem Laboratories Ltd 11
Slide 12: Portfolio Scene: Therapy Dominance & Price Control
Portfolio SCENE Therapy Dominance & Price Control Therapy Therapy Therapy Major Major Revenue Revenue contributors: contributors: Chronic Chronic careaccounts care accounts for for ##58%* 58%* of of Domestic Formulation Revenues Domestic Formulation Revenues Acute Acuteportfolio portfolioac
Slide 13: Cash Generation - Pre R&D Expenses
Cash Generation – Pre R & D Expenses Rs. Crores 2010~11 2005-06 2006-07 2007-08 2008-09 2009-10 Cumulative YTD {Apr – Dec} Positive Cash Flow 106.4 124.7 118.3 168.4 188.7 706.5 145.1 UNICHEM Spending: R & D Expenditure 10.1 19.7 21.6 23.5 29.7 104.6 27.7 Capital Expenditure 19.4 81.8 80.0 45.5 44.3
Slide 14: Unichem in The Indian Pharma Market
Unichem in The Indian Pharma Market Rs. Crores Indian Pharmaceutical Market MAT Jan 2011 % Gth Total Size of the Market 47,252 16.2 Unichem Represented (Covered) Market 23,383 17.1 Top Companies in Covered Market * Ranbaxy 1,576 14.2 UNICHEM Alkem 1,126 18.9 Cipla 905 14.6 Mankind 847 29.9 Piramal H
Slide 15: Unichem's Therapy Gaps in the market
Unichem’s Therapy Gaps in the market MAT Jan’ 11 % of Total No. of Sub- % of Total Value Rs. Crs Value Segments No. of Segments Unichem Non-Represented Segments 23,689 50.5% 1,131 82.0% Unichem Represented Segments 23,383 49.5% 249 18.0% Total Market 47,252 100.0% 1,380 100.0% UNICHEM Unichem is r
Slide 16: Domestic Formulations
Domestic Formulations SBU Divisions Domestic Formulation Business UVA Pharma Acute Therapy UNICHEM Unisearch Cardiovascular, Diabetology & Nephrology Neu Foreva CNS Unikare Primary Care & Derma Unistar Molecular Generics Customer Coverage Total # 1816 Field Force (Clinical Business Associates) cover
Slide 17: Domestic Formulations Business
Domestic Formulations Business Therapeutic Segment-wise break-up Leadership position in key participated segments – Largest brand / brand extensions in excess of Rs148cr UNICHEM # 5 Brands in Top 300 brands – Ampoxin, Losar H, Losar, Trika & Unienzyme In 19* therapeutic groups Unichem’s brand is No
Slide 18: Brand Building - Focus Brand Portfolio
Brand Building – Focus Brand Portfolio # Top 10 Brands contributes nearly 51% of the company’s domestic revenues – Ampoxin, Losar, Losar H, Trika, Unienzyme, TG-Tor, Vizylac, Telsar, Telsar H and Serta revenues – UNICHEM # 25 Brands contributes appx 70% of the company’s domestic # 3 - Rs. 50 crore p
Slide 19: Top Product Groups Performance
Top 10 Product Groups Performance Rs. Crores MAT Jan, April ~ Jan % Market % % Contribution 2011 2011 Share* Growth to Revenue Total Revenue 711 604 1.5 14.4 100.0 Losar Group 149 126 31.8 12.5 20.9 UNICHEM Ampoxin Group 73 62 33.0 (16.2) 10.2 Trika Group 39 32 25.1 3.5 5.4 Telsar Group 38 33 9.2 65
Slide 20: Brand Building - Focus Brand Portfolio
Brand Building – Focus Brand Portfolio MAT MAT Unichem Jan’ 11 Particulars Jan’ 11 Brand Total Unichem Market TELSAR + Telsar was launched in July -03 and now ranks 2nd largest brand 394 37 UNICHEM Combinations in terms of units and value Olsar was the 10th brand launched (Jan -08) in Olmesartan OLS
Slide 21: IMS Data - MAT Jan, 2011
IMS Data – MAT Jan, 2011 Therapy Market Representative Market Unichem Laboratories Segment Size (Rs. Crs) % Growth Sales (Rs. Crs) % Share % Growth Cardiac Care 3,393 20.7 315 9.3 23.2 Anti-Infectives 5,974 15.0 118 2.0 (8.1) Neuro-Psychiatry 1,353 19.3 91 6.7 20.4 UNICHEM Gastroenterologicals 1,865
Slide 22: IMS Data Monthly Sales & MAT Jan 2011
IMS Data Monthly Sales & MAT- Jan, 2011 Market Size Value Growth Unichem Value Growth % Market Indicators (Crs) (%) (Crs) (%) Share MAT Jan’ 11 23,383 17.1 711 15.9 3.0 Feb’10 1,721 22.8 54 28.4 3.2 UNICHEM Mar’10 1,707 20.5 53 22.1 3.1 April’ 10 1,921 26.0 61 25.8 3.2 May’ 10 1,825 21.4 58 18.6 3.2
Slide 23: Globally Accredited State of the art Manufacturing Facilities
Globally Accredited State of the art Manufacturing Facilities APIs – Roha (Maharashtra) – Multi purpose plants Regulatory approvals - USFDA, EDQM, TGA and ISO 9001:2000 compliant – Pithampur (MP) – Multi purpose plants Regulatory approvals – USFDA , EUGMP UNICHEM Formulations – Baddi (HP) – essentia
Slide 24: Domestic Market - Management Focus
Domestic Market – Management Focus Domestic Market – Potential entry into unrepresented / uncovered market segments such as Hospitals, Gynecology – Product Portfolio Optimization & Field Resource Allocation relating to Chronic UNICHEM Therapy – Enhancing relationship with customers and Focus on Fiel
Slide 25: Agenda
Agenda 1. Profile & History 2. Growth & Profitability UNICHEM 3. Business Operations – Domestic Operations – International Operations – API Operations 4. Research & Development 5. Management & Governance 6. Financials ©Unichem Laboratories Ltd 25
Slide 26: International Business
International Business Company has made significant investments in building infrastructure to support international business More than # 565 product registrations across the world UNICHEM More than # 416 Regulatory filings (DMFs, EDMFs. e-CTDs, ACTDs etc) # 15 US ANDAs filed so far and # 9 of which
Slide 27: International Business - Formulations: Emerging Global Markets
International Business – Formulations Zone 1 : Emerging Global Markets Geographic Mix – FY 2009-10 Strategic alliances in place for distribution and marketing of branded generics – In SAARC countries, S.E Asia, Baltic Republics, CIS, Central Asian Republics, UNICHEM Africa and the Middle east Repres
Slide 28: International Business - Formulations: Europe
International Business – Formulations Zone 2 : Europe EUROPE – Niche Generics Business Model Geographic Mix – FY 2009-10 European presence through 100% subsidiary - Niche Generics, UK The subsidiary identifies products for development, recommends these products to Unichem for UNICHEM development
Slide 29: International Business - Formulations: USA and LATAM
International Business – Formulations Zone 2 : USA and LATAM UINITED STATES: UNICHEM PHARMACEUTICALS (USA) Inc - wholly owned subsidiary to manage ANDA filings and Business Development Business model is based on leveraging Unichem’s technical expertise and production UNICHEM capability with inte
Slide 30: International Market - Management Focus
International Market – Management Focus United States – Develop long term relationships with local partners – Finalize tie-ups for launching ANDA approved products – More ANDAs filings and approvals – Capitalize end-to-end value chain – Forge relationship with Innovators to become building blocks in
Slide 31: Agenda
Agenda 1. Profile & History 2. Growth & Profitability UNICHEM 3. Business Operations – Domestic Operations – International Operations – API Operations 4. Research & Development 5. Management & Governance 6. Financials ©Unichem Laboratories Ltd 31
Slide 32: World class Manufacturing Facilities and Infrastructure
World class Manufacturing Facilities and Infrastructure Roha (Maharashtra) – Multi purpose plants Regulatory approvals – USFDA, EDQM, TGA and ISO 9001:2000 compliant UNICHEM Pithampur (MP) – Multi purpose plants Regulatory audits – USFDA, EUGMP ©Unichem Laboratories Ltd 32
Slide 33: Key APIs
Key APIs Sr. Current Product List Therapeutic Uses US Canadian EDMF COS Japanese No DMF DMF DMF 1 Alfuzosin Hydrochloride Alphablocker 9 9 9 ◘ 2 Amlodipine Besilate Anti Hypertensive 9 9 9 9 * 3 Amlodipine Maleate Anti Hypertensive 9 4 Bendroflumethiazide Anti Hypertensive, Diuretic 9 9 UNICHEM 5 Bi
Slide 34: Key APIs
Key APIs Sr. Current Product List Therapeutic Uses US Canadian EDMF COS Japanese No DMF DMF DMF 13 Lamotrigine Anti Epileptic 9 9 14 Losartan Potassium Anti Hypertensive 9 ** 15 Meloxicam COX II Inhibitor 9 9 ◘ 9 16 Metronidazone Anti Protozoal / Anti Amoebic 9 9 9 17 Memantine Hydrochloride NMDA Re
Slide 35: Total Revenue
Total Revenue YTD 2010 – 11 F Y 2009 - 10 {Apr ~ Dec} Revenue Break-up by Segment Revenue Break-up by Segment UNICHEM Revenue Break-up by Region Revenue Break-up by Region Total Revenue : Rs. 61.8 Crores Total Revenue : Rs. 52 Crores ©Unichem Laboratories Ltd 35
Slide 36: Management Focus: APIs for Generic Markets
Management Focus API’s for Generic Markets Improve Profitability of API Business Focus on profitable Generic APIs to New customers in existing Regulated Markets UNICHEM Penetrate into New Regulated Markets Achieve cost leadership in 3~4 molecules Long term Supply Contracts with customers in Regulate
Slide 37: Agenda
Agenda 1. Profile & History 2. Growth & Profitability UNICHEM 3. Business Operations – Domestic Operations – International Operations – API Operations 4. Research & Development 5. Management & Governance 6. Financials ©Unichem Laboratories Ltd 37
Slide 38: R&D Focus
Focus Unichem has a two fold R & D strategy – Development of Novel Drug Delivery Systems (NDDS) – Development of patent non-infringing processes for APIs Chemical R & D – State-of-the-art facility at Mumbai offering the most conducive environment for value added research UNICHEM – Developed novel &
Slide 39: Agenda
Agenda 1. Profile & History 2. Growth & Profitability UNICHEM 3. Business Operations – Domestic Operations – International Operations – API Operations 4. Research & Development 5. Management & Governance 6. Financials ©Unichem Laboratories Ltd 39
Slide 40: Management & Governance
Management & Governance Board of Directors (Dr. P A Mody; Mr. Prafull Anubhai; Mr. Ramdas M Gandhi; Mr. Nasser Munjee; Mr. Prafull D Sheth; Mr. Anand Mahajan) Shareholders Audit Committee Compensation Grievance Committee Committee UNICHEM Chairman & Managing Director Divisional Heads CEO – Pharmaceu
Slide 41: Agenda
Agenda 1. Profile & History 2. Growth & Profitability UNICHEM 3. Business Operations – Domestic Operations – International Operations – API Operations 4. Research & Development 5. Management & Governance 6. Financials ©Unichem Laboratories Ltd 41
Slide 42: Standalone Financials
Standalone Financials S T A N D A L O N E F IN A N C IA L S F o r th r e e F o r th r e e F o r N in e F o r N in e m o n th s m o n th s m o n th s m o n th s P a r ti c u l a r s ended ended % G r o w th e nde d e nde d % G r o w th De c 31, 2010 De c 31, 2009 De c 31, 2010 De c 31, 2009 S a l e s
Slide 43: Ratios
Ratios Q u a rt e r Q u a rt e r P re v io u s y e a r P re v io u s y e a r ended ended ended ended D e c , 2010 D e c , 2009 M a rc h 31, 2010 M a rc h 31, 2009 D e bt / Equ i ty R ati o: 0 .0 4 0 .0 4 0 .0 4 0 .0 5 N e t w o rt h (R s . M n ) 6 9 2 5 .8 4 6 0 5 9 .6 5 6 1 0 6 .7 1 5 1 9 9 .6 1 T
Slide 44: Thank You
Thank You ©Unichem Laboratories Ltd 44