Laurus Labs Ltd. · NSE:LAURUSLABS
Laurus Labs — Q3 FY2022 Earnings Presentation
36 slides from Laurus Labs's earnings presentation, Jan 27, 2022
Slide 1: Exchange filing cover letter - Investors/Analysts Presentation
Laurus Labs Limited Corporate Office 2nd Floor. Serene Chambers, Road No. 7 Banjara Hills. Hyderabad- 50003~. Telangana, India T +91 ~0 6659 ~333, 3980 ~333 , 23~2 0500 I 501 LAURUS Labs F +91 ~0 6659 ~320 I 3980 ~320 Knowledge . Innovation . Excellence January 27, 2022 To To The Corporate Relations
Slide 2: Q3 FY 2022 Financial Results and Business Update
Q3 FY 2022 Financial Results and Business Update January 27 , 2022
Slide 3: Safe Harbor Statement
Safe Harbor Statement This presentation contains statements that constitute “forward looking statements” including and without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to our future business developments and economic performance. W
Slide 4: Agenda
Agenda 1 Financial Overview 2 Business review & Strategy 3 Outlook & Guidance 4 Appendix 3 Laurus Q3FY22 Investor Presentation | January 27, 2022
Slide 5: Financial Overview
Financial Overview 1 4 Laurus Q3FY22 Investor Presentation | January 27, 2022
Slide 6: 9M/FY22 – Results summary
9M/FY22 – Results summary Despite of Lower demand for ARV API and Formulation, sustained Revenue and EBIDTA Revenues ₹ 3,511 Cr ▲3% EBITDA ₹ 1,038 Cr ▼ 5% 9M/FY22 Consolidated Financials Key Highlights [₹Crore] 9M/FY22 9M/FY21 Y-o-Y Revenue from operations has grown at modest 3% YoY despite of low
Slide 7: 9M/FY22 – Business performance
9M/FY22 – Business performance 9M/FY22 Segment Performance [₹ Crore] 9M/FY22 9M/FY21 Y-o-Y Key Highlights FDF 1,389 1,234 13% Formulation (FDF): Reported healthy growth of +13% YoY. This was APIs 1,500 1,824 -18% driven by ARVs and steady market share gains / new launches in Developed markets Synt
Slide 8: Summary Quarterly Performance
Summary Quarterly Performance Consistent Delivery – Normalization underway 700 38% [₹ Cr] 34% 34% 33% 33% 31% 600 1,412 29% 29% 477 28% 28% 1,288 1,279 500 433 1,203 23% 379 400 1,139 23% 400 348 1,029 284 290 18% 974 300 839 193 13% 200 8% EBITDA 100 Revenues 3% & Margins % 0 -2% 4Q 1Q 2Q 3Q 4Q 1Q
Slide 9: Financial Performance 3Q/FY22
Financial Performance 3Q/FY22 Lower demand for ARV APIs and Formulation, resulted in lower Revenue and EBIDTA Revenues ₹ 1,029 Cr ▼20% YoY EBITDA ₹ 290 Cr ▼33% YoY Key Highlights 3Q/FY22 Consolidated Financials [₹Crore] 2Q/FY22 3Q/FY22 3Q/FY21 Y-o-Y Q-o-Q Net Revenues declined 20% due to lower dem
Slide 10: Business review & Strategy
Business review & Strategy 2 9 Laurus Q3FY22 Investor Presentation | January 27, 2022
Slide 11: Business Performance 3Q/FY22
Business Performance 3Q/FY22 Key Drivers of Change – Tracking healthy 3Q/FY22 Segment Performance Key Highlights [₹ Crore] 2Q/FY22 3Q/FY22 3Q/FY21 Y-o-Y Q-o-Q Formulation (FDF): Declined 13% YoY impacted by lower demand FDF 495 373 430 -13% -25% in ARV segment due to stocking at channel partners.
Slide 12: Generic FDF
Generic FDF Soft – expect recovery in the quarters ahead ▼ 13% Y-o-Y [₹ Cr] ▼ 25% Q-o-Q 521 ROW 26 9 35 495 430 430 373 Canada 11 5 16 Revenue Global Filings Approved Growth Progress Pending EU 6 5 11 US * 19 11 30 3Q 4Q 1Q 2Q 3Q FY21 FY21 FY22 FY22 FY22 * Includes 9 Tentative approvals in US Key Hi
Slide 13: Generic APIs
Generic APIs High base & Transient Demand impact in ARVs; Good traction in Other APIs) ▼ 42% Y-o-Y [₹ Cr] ▼ 20% Q-o-Q ARV API Other API Onco API 797 731 9% 8% 11% 14% 20% 14% 21% 14% 549 527 22% 32% Revenue 424 API revenues Growth mix 78% 71% 75% 64% 48% 3Q 4Q 1Q 2Q 3Q 3Q 4Q 1Q 2Q 3Q FY21 FY21 FY22
Slide 14: CDMO - Synthesis
CDMO - Synthesis Accelerating our focus Operational [₹ Cr] ▲ 63% Y-o-Y Highlights ▲ 34% Q-o-Q 207 195 176 4 155 1 2 3 5 127 Revenue 50 4 4 100+ 550KL+ Growth Projects Commercial Big Pharma R&D Dedicated till date Projects Global Scientist capacity by Client 4QFY22 3Q 4Q 1Q 2Q 3Q FY21 FY21 FY22 FY22
Slide 15: Laurus Bio - Bio business
Laurus Bio - Bio business Business integration & New capacities broadly on track [₹ Cr] 26 25 180KL fermentation capacity fully commissioned Acquiring additional land for creating Revenue 14 1MN liters fermentation capacity Growth 9* Leveraging Parent’s existing Global Partnership and strong c
Slide 16: R&D Creating a Value Centric Portfolio
R&D Creating a Value Centric Portfolio 500 39 46 54 60 61 71 ◄10% DMFs 450 ◄ US ANDA $ 39 bn 3 9 19 26 27 30 400 R&D spend 350 & Filing 7% 7% 6% 300 4% trend (US/EU 6% 4% 250 6% /Canada) 166 184 80% 200 160 148 Non-ARV 134 114 150 US/EU 100 $ 11bn pipeline by 50 Addressable ~30% Non-ARV 0 2% market
Slide 17: Healthy Regulatory track with unwavering commitment to Quality
Healthy Regulatory track with unwavering commitment to Quality Laurus Philosophy “One Quality Standard for All Markets” No of USFDA Year Last US FDA – Facility Regulatory Certifications audits (since started Inspection status inception) 2021 – Facility Kilo Lab USFDA, TGA, KFDA, PMDA, Assessment com
Slide 18: Fundamentally - Diversified our Segment mix
Fundamentally - Diversified our Segment mix Intensifying the Transformation drive FY 2017 FY 2021 (IPO) (By Segment) Revenues: ₹ 1,905cr Revenues: ₹ 4,813cr Revenues CAGR: 21% Onco & Integrated Business Approach EBITDA CAGR: 32% Other API+, 16% to create value ARV api, 39% Synthesis, 11% Wider P
Slide 19: Manufacturing Infrastructure (1/2)
Manufacturing Infrastructure (1/2) Strong capabilities in Contract Manufacturing – a good fit to multiple strategic alliance Jawaharlal Nehru Pharma City, Visakhapatnam APIIC, Atchutapuram, Visakhapatnam 1 2 •FDF & API •API, CDMO - Synthesis • 6 bn Tablets/Capsules per year) • 333 reactors with 1,22
Slide 20: Manufacturing Infrastructure (2/2)
Manufacturing Infrastructure (2/2) IKP Knowledge Park, Genome Valley, Hyderabad Laurus Bio (facility acquired through Richcore) Bangalore Kilo R1 Lab •API, CDMO - Synthesis •Bio-Ingredients • 43 reactors and 4.3 KL capacity • Fermentation capacity of 10,750 Liters (2 reactors of • Key Approvals: USF
Slide 21: Capacity Progress
CAPEX Investments – An overview of on-Going Projects Re-investing to support Long term growth Expansion Type Division Location Status & Capacity Operational Timelines Brownfield Formulation Vizag Unit 2 - 4 billion units (New building) Completion by Apr 22 Brownfield Formulation Vizag Unit 2 - 1 bil
Slide 22: Laurus Vision and Our Values
Laurus Vision “To become a leading player in offering integrated solutions to global pharmaceutical needs in creating a healthier world” Our Values KNOWLEDGE I N N OVAT I O N EXCELLENCE CARE INTEGRITY 21 Laurus Q3FY22 Investor Presentation | January 27, 2022
Slide 23: Board of Directors
Board of Directors Strong Governance Standard from a diverse board Dr. M. Venu Gopala Rao Dr. Satyanarayana Chava Mr. V V Ravi Kumar Non-Executive Chairman & Independent Director Executive Director & Chief Executive Officer Executive Director & Chief Financial Officer Key Expertise: General Manageme
Slide 24: Key Management Team
Key Management Team Driven by credible expertise Dr. V Uma Maheswer Rao Mr. Srinivasa Rao S Mr. Krishna Chaitanya Chava EVP – Chemical R&D EVP – Manufacturing & Operations EVP - Synthesis Division Key Expertise: Extensive experience in process R&D, Key Expertise: +27 years experience in production K
Slide 25: ESG Standards & Sustainability (1/2)
ESG Standards & Sustainability (1/2) Adopting best practices for better future Environment Social Governance Our Approach to Sustainability is embedded in our Core Value Framework. We are committed to creating value for our stakeholders through careful management of resources against focused priorit
Slide 26: ESG Standards & Sustainability (2/2)
ESG Standards & Sustainability (2/2) Strictly comply with the Environmental Protection Law and other EHS regulations Sustainability initiatives are accredited by multiple agencies including MSCI* (Global leader in ESG Ratings) Rated “A” by MSCI ESG Rating - puts us among top 18% of global phar
Slide 27: Outlook & Guidance
Outlook & Guidance 3 26 Laurus Q3FY22 Investor Presentation | January 27, 2022
Slide 28: Outlook FY2022 & Ahead
Outlook FY2022 & Ahead Business Moats Key Segment Outlook & Enablers 1 Renewed market share gains in ARV portfolio in LMIC despite Pricing headwind Integrated Approach Market share growth in US launched products & Create differentiated generic pipeline for the Solid execution & Trust from Fo
Slide 29: Laurus Priorities FY2022
Laurus Priorities FY2022 Accelerating action for value creation 1 Business Proactive portfolio de-risking, enhanced procurement and operational efficiency Integrating & leveraging Richcore acquisition Widen technology portfolio and access new market opportunities Strengthen position with Big
Slide 30: ARV market – Industry Trend (1/2)
Updated WHO guideline – 2021 ARV market – Industry Trend (1/2) KEY FINDINGS Progress on HIV treatment – Moving to 95-95-95 target Emphasize on Differentiated and 37.7M People Living with HIV – 75% treatment coverage Progress Toward UNAIDS Targets on HIV integrated service delivery models; in 2
Slide 31: ARV market – Industry Trend (2/2)
ARV market – Industry Trend (2/2) DTG based ART to remain preferred regime by 2025 By 2023, DTG based regime share est. to reach DTG comprised 8% of 2L treatment in 2020. The share Weighted Avg. GA LMIC Regimen Prices 94%. DTG has better clinical benefits & affordability of DTG is expected to
Slide 32: 15 years of patience, diligence and perseverance
15 years of patience, diligence and perseverance Capabilities 2006-11 2011-16 2016-21 Pharmaceutical Company transformation ARV APIs API company company Team strength 883 2,266 4,808 No of Scientist at R&D 400+ 500+ 750+ Manufacturing Units 1 (FDA compliant) 2 (FDA) 8 (5 FDA) Reactor volume (KL) 220
Slide 33: Corporate Structure and Shareholding Details
Corporate Structure and Shareholding Details Corporate All are 100% Subsidiaries except Laurus Structure Bio and ImmunoACT* Laurus Labs Limited India Laurus Synthesis Laurus Generics *Laurus Bio (earlier Sriam Labs Pvt Ltd Laurus Holdings Ltd *ImmunoACT 18.94%^^ Pvt. Ltd SA (PTY) Ltd Richcore) 74.4%
Slide 34: Recognition from Industry
Recognition from Industry Great Place to Work Golden Peacock Award Most Promising company of Year 2021 For the third consecutive time in For Excellence in Corporate a study conducted by the Great Governance 2020 Awarded by CNBC-TV18 Indian Place to Work® Institute Business Leader Awards India Pharma
Slide 35: Conference Call Details
Conference Call Details Results conference call on Friday - January 28, 2022 at 11:00 AM IST Details of the conference call are as follows Location Dial-In Details Conference dial-in Universal Dial-In +91 22 6280 1342 India Local access Number +91 22 7115 8243 Available all over India Singapore 800
Slide 36: About Laurus Labs
About Laurus Labs Laurus Labs is a fully integrated pharmaceutical and biotechnology company, with a leadership position in generic Active Pharmaceutical Ingredients (APIs) and a major focus on anti-retroviral, Hepatitis C, and oncology drugs. We also develop and manufacture oral solid formulations,