Syngene International Ltd. · NSE:SYNGENE
Syngene International — Investor Presentation (March 2019)
31 slides from Syngene International's investor presentation, March 2019
Slide 1: Investor presentation March 2019
Investor presentation March 2019
Slide 2: Safe harbour
Safe harbour Certain statements in this release concerning our future growth prospects are forward-looking statements, which are subject to a number of risks, uncertainties and assumptions that could cause actual results to differ materially from those contemplated in such forward-looking statements
Slide 3: Introduction
Introduction Putting Science to Work
Slide 4: Introduction
Introduction The Biocon Group Syngene’s Shareholding Pattern1 ▪ Services Based Syngene ESOP 1.0% ▪ Contract Discovery ▪ Contract Development ▪ Contract Manufacturing Promoter 71.1% Public 27.9% ▪ Product Based ▪ Biosimilars ▪ Formulations and Compounds ▪ Alternative Therapeutic Drugs 4 1 As of 31st
Slide 5: Overview
Overview ▪ Established in 1994 as India’s first Contract Research Organization – 25 years of unparalleled experience in novel molecule discovery and development services. ▪ Integrated service platform for small and large molecules, antibody-drug conjugates and oligonucleotides. ▪ World class infrast
Slide 6: Recent business highlights
Recent business highlights All figures in INR Cr unless otherwise specified Quarter highlights: P&L Summary Q4 FY19 Q4 FY18 YoY Change ▪ Revenue crossed Rs 500 Cr. for the first time. Revenue 555 426 30% EBITDA 181 146 24% ▪ PAT of Rs 100 Cr. for the first time. EBITDA Margin 33% 34% ▪ Strong revenu
Slide 7: Journey over the years
Journey over the years 20,000 sq. ft facility 1.4 million sq. ft facility Infrastructure 100+ ~4,600 People - Chemistry - Preliminary biology - End-to-End discovery, development and manufacturing capabilities Capabilities $5 million $350 million Investment 7 * For the year ended 31st March, 2019 Put
Slide 8: Who we are today: A global high growth CRO company
Who we are today: A global high growth CRO company One of the leading India-based CROs Strong growth and profitability Integrated discovery and development platform Focus on novel molecular entities 19,007 331(1) clients across multiple sectors 14,849 12,716 11,133 94%(1) of sales from outside India
Slide 9: Putting science to work
Putting science to work Who we are and what we do ▪ Combining world class research talent and infrastructure with the Indian cost advantage ▪ Converting R&D to a variable cost for clients ▪ Moving beyond cost arbitrage to R&D productivity and innovation Key differentiators of growth Scalable Predict
Slide 10: Our industry
Our industry Putting Science to Work
Slide 11: Global pharma R&D trends
Global pharma R&D trends ▪ Large and growing addressable market Industry Statistics ▪ Global R&D expenditure expected to increase from $139bn (USD bn) in 2014 to $152bn in 2018 (CAGR of 2.3%) Global R&D Spending Global CRO Market(1) ▪ 75% of R&D spend can be potentially outsourced ▪ Increasing per u
Slide 12: Global CRO market: over US$43bn and growing
Global CRO market: over US$43bn and growing Outsourcing market by stage of DD Continuum Significant growth in APAC (USD bn) Global NME Discovery Outsourcing Market (USD bn) 67.2 22.7 15.2 43.4 14.7 15.2 9.2 24.7 15.8 4.6 10.5 3.8 22.7 7.5 14.7 4.2 2014 2018 2014 2018 Discovery Preclinical Clinical (
Slide 13: Business overview
Business overview Putting Science to Work
Slide 14: The drug discovery continuum
The drug discovery continuum Discovery Development Commercialisation Pre- clinical Clinical Target Lead Product Animal Ph Ph Ph Drug filing launch Identification generation with FDA and Lead safety I II III other global selection regulatory Target Target API and drug product authorities Marketing/ d
Slide 15: Fully integrated services platform…
Fully integrated services platform… Discovery Development Manufacturing Drug Substance Chemistry Development Clinical Supplies Drug Product Development Specialty Molecules Biology Small Molecules Integrated Drug Substance – Drug Product Commercial Supplies Integrated drug discovery Clinical Services
Slide 16: …With multiple entry points
…With multiple entry points Discovery Development Commercialisation Pre- clinical Clinical Target Lead Product Animal Ph Ph Ph Drug filing launch Identification Generation with FDA and Lead Safety I II III other global Selection regulatory Target Target API and Drug product authorities Marketing/ De
Slide 17: Integrated platform to build strategic relationships
Integrated platform to build strategic relationships Customer Focus Cost arbitrage R&D productivity Innovation Multiple services Dedicated play Integrated play Capabilities/ Complexity Cluster plays Component plays Single service Small/Short term Scale/Predictability Larger/Long term 17 Putting Scie
Slide 18: Verticals overview
Verticals overview Dedicated Centers Discovery Services Development and • Integrated Services • Discovery Chemistry, Discovery Manufacturing Services • Dedicated Infrastructure customized Biology and in-vivo services • Preclinical studies, Stability, for client’s requirements • Peptide Synthesis For
Slide 19: Dedicated R&D centers
Dedicated R&D centers Exclusive R&D Center for Amgen Largest R&D Center in Asia for Dedicated R&D Center in India for Inc. in India (2016). Herbalife’s 1st Nutrition Research BMS (2009). Contract extended till Baxter (2013). Contract extended and Development Lab in India 2026. till 2024. State-of-th
Slide 20: Discovery Services: From target to a drug candidate
Discovery Services: From target to a drug candidate Candidate Hit to lead Lead optimization development selection Candidate Candidate 5 Lead Selection Development Compounds Exploratory PK, Tox and Developability Assessment 20 Lead In-Vivo DMPK Profiling, Compounds CADD 500 Lead Generation of focused
Slide 21: Development Services
Development Services ▪ Encompass activities across multiple disciplines as a molecule moves from pre-clinical to clinical trials Preclinical Clinical Studies Studies ▪ Key activities include: Drug product ▪ Drug substance development (process R&D and Drug Dvpt. Substance optimization) Dvpt. Viral Bi
Slide 22: Manufacturing Services
Manufacturing Services Small Molecules • State-of-the-art cGMP facility to Manufacture NCEs • Designed to support multi gram to 100s of kgs/ batch of Intermediates and APIs for Clinical Trials; Current capacity can support initial commercial supplies • New greenfield investment being made in Mangalo
Slide 23: Multiple layers of growth
Multiple layers of growth Expand/Extend Existing Clients Capacity Expansion - High service integration - Consistent expansion - Dedicated centres model - FTE services, manufacturing, formulation, biologics, stability Engage New Clients - Tailored service offerings and Customer Capacity dedicated per
Slide 24: Financial highlights
Financial highlights Putting Science to Work
Slide 25: Q4 FY19 financial highlights
Q4 FY19 financial highlights All figures in INR Mn unless otherwise specified Particulars Q4 FY19 Q4 FY18 YoY Change Revenue 5,547 4,257 30% Material and Power costs 1,607 1,352 19% Employee costs 1,312 1,041 26% Gross Margin 2,628 1,864 41% Gross Margin (%) 47% 44% Foreign Exchange (net) 79 (309) (
Slide 26: FY19 financial highlights
FY19 financial highlights All figures in INR Mn unless otherwise specified Particulars FY19 FY18 YoY Change Balance Sheet Highlights Revenue 19,007 14,849 28% Material and power costs 5,725 4,164 37% As on 31st March 2019 Employee costs 4,727 3,796 25% Gross Margin 8,555 6,889 24% Shareholders’ fund
Slide 27: Strong track record of topline growth…
Strong track record of topline growth… Total Revenue (INR Mn) ▪ Growth driven by increase in sales from existing clients and acquisition of new clients ▪ “Engage, expand and extend” strategy to extend 19,007 client relationship over a longer period of time 14,849 ▪ Growth in total number of clients
Slide 28: …With best-in-class profitability
…With best-in-class profitability All figures in INR Mn unless otherwise specified Operating Margin (EBITDA) Profit After Tax Margin (Net Income) 23% 21% 38% 22% 35% 35% 20% 17% 34% 32% 6,119 3,316 5,266 3,054 4,783 2,873 3,866 2,408 2,928 1,750 FY2015 FY2016 FY2017 FY2018 FY2019 FY2015 FY2016 FY201
Slide 29: Capital expenditure
Capital expenditure Historical capital investments – Average gross block (INR Mn) Planned capital expenditure 18,859 ▪ Overall planned capex of US$550 million by FY21. 14,708 8,255 10,169 12,063 ▪ US$350 million invested as of FY19. ▪ Additional capex of US$200 million envisaged by FY21. FY2015 FY20
Slide 30: Managing risks
Managing risks Risk Mitigation Client growth and sustained retention Proactive client engagement and sustained quality Comprehensive hedging policy and tracking mechanism Currency fluctuation (USD/INR) in place Significant capex investment over next few years Staggered investments in line with busin
Slide 31: THANK YOU
THANK YOU For more details www.syngeneintl.com • Visit www.syngeneintl.com • IR Contact : Chanderlekha Nayar +91 80 6775 8821 +91 725 919 2001 chanderlekha.nayar@syngeneintl.com
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