Glenmark Pharmaceuticals Limited · NSE:GLENMARK
Glenmark Pharmaceuticals — Investor Day (May 2024)
32 slides from Glenmark Pharmaceuticals's investor day presentation, May 30, 2024
Slide 1: Investor Day 2024
INVESTOR DAY 2024 30 May 2024 © 2024 GLENMARK PHARMACEUTICALS LTD. ALL RIGHTS RESERVED
Slide 2: Disclaimer
Disclaimer This document has been prepared by Glenmark Pharmaceuticals Limited and the information, statements and analysis made in this document describing the Company’s or its affiliates’ objectives, projections and estimates are forward looking statements. Forward-looking statements are all state
Slide 3: Today's Agenda
Today’s Agenda Glenmark Today And Strategic Outlook Glenn Saldanha Chairman and Managing Director Differentiated, Global Formulation Business Christoph Stoller President and Business Head – Europe and Emerging Markets Collaboration Propels Innovation Cyril Konto, M.D. President and Chief Executive O
Slide 4: Glenmark Today And Strategic Outlook
Glenmark Today And Strategic Outlook Glenn Saldanha Chairman and Managing Director 4
Slide 5: Glenmark Today
Glenmark Today Vision: To emerge as a Leading, Research-led, Global pharmaceutical company ~US$ 1.5 10 US$ 300+ billion manufacturing sites globally across million consolidated revenue dosage forms out-licensing income from NME research till date3 ~60% 4 4 contribution to R&D centers covering innova
Slide 6: Navigating Through Uncertainties To Emerge Stronger
Navigating Through Uncertainties To Emerge Stronger Slow growth in • Pivot towards branded markets to drive revenue growth the U.S. generic • Successful global launch of RYALTRIS® in the branded Respiratory segment market • In-licensing of innovative branded products in key therapeutic areas Adverse
Slide 7: Glenmark Continues To Move Up The Value Chain
Glenmark Continues To Move Up The Value Chain Branded Generics Dermatology Respiratory Oncology Key priorities • 2nd in India1; launched • 2nd in India1; 2nd in the • Among the leading • Drive the US generics JABRYUS® (Abrocitinib) in Russian Expectorants companies in India; business growth through
Slide 8: Global Brands To Be Key Catalysts For Future Growth
Global Brands To Be Key Catalysts For Future Growth Envafolimab Therapeutic Respiratory Oncology Dermatology area India Europe1, the UK Key regions Global ROW markets South Africa Launch First market launch in First market launch in Launched calendar FY26 FY26 Expected Estimated total annual global
Slide 9: Contribution From Branded Markets To Further Increase Going Forward
Contribution From Branded Markets To Further Increase Going Forward FY19 FY24 FY29E ~55% ~60% ~70% ~30% ~45% ~40% Branded1 Generics2 Branded1 Generics2 Consistent high growth in ROW and Europe branded portfolio, along with Targeting ~70% contribution India, has led to an increasing share of branded
Slide 10: Glenmark 2.0: Evolving Ideologies To Fuel Sustained Success
Glenmark 2.0: Evolving Ideologies To Fuel Sustained Success 01 02 03 04 Focus on Generate further Stay averse to Drive revenue operating debt and remain shareholder growth and efficiencies to free cash wealth creation continue to drive drive – Increase pay-out positive post capital continuous any CA
Slide 11: Differentiated, Global Formulation Business
Differentiated, Global Formulation Business Christoph Stoller President and Business Head Europe and Emerging Markets 11
Slide 12: Global Commercial Footprint Resulting In A De-risked & Robust Business
Global Commercial Footprint Resulting In A De-risked & Robust Business Branded & OTC Generics INDIA ROW EUROPE NORTH AMERICA Revenue ~22% ~31% contribution1 ~21% ~26% RCIS, LatAm, Key markets India MEA, APAC WEU, CEE USA, Canada Key Dermatology, Respiratory, Oncology Oral solids, topical, injectable
Slide 13: India: Sustained, Market-beating Growth
India: Sustained, Market-beating Growth One of the fastest growing companies in the IPM1 Sharp focus on key therapy areas Legacy of creating mega-brands Glenmark has grown faster than IPM consistently Rank in Rank in Therapy Area 9 brands1 15 brands1 April 20193 April 20243 Derma 2nd 2nd ₹1,000+ ₹50
Slide 14: India: Growth Levers Aimed At Building On The Strong Base
India: Growth Levers Aimed At Building On The Strong Base CONTINUE INCREASE Growing New product launches, core therapies including in-licensing of innovative molecules Building / expanding OTC / DTC brands franchises business thrust Geographical and Institutional sales field-force expansion and alte
Slide 15: ROW: Propelling Growth Via Therapeutic Area Leadership
ROW: Propelling Growth Via Therapeutic Area Leadership Strong growth tailwinds across regions Revenue (₹ million) Russia / CIS LatAm +10% 27,666 Large US$ 20+ billion US$ 70+ billion overall 16,939 market MEA APAC opportunity4 US$ 20+ billion US$ 50+ billion FY19 FY24 Key highlights across markets R
Slide 16: ROW: Target 15-20% CAGR Over The Next Four Years
ROW: Target 15-20% CAGR Over The Next Four Years Gain scale in existing markets Launch differentiated products in core therapeutic areas Further gain market share in RYALTRIS® Expand market share in key therapeutic areas Launch Envafolimab through differentiated product launches Drive profitability
Slide 17: Europe: Portfolio Offerings Scaling Up To Boost Growth
Europe: Portfolio Offerings Scaling Up To Boost Growth Fastest growing region Glenmark Europe covers 5 out of Increasing share of branded for Glenmark the 6 major markets directly in the overall product mix Revenue (₹ million) Glenmark presence 3rd party business FY191 +16% 24,205 Branded ~20% 11,20
Slide 18: Europe: Pursuing Consistent Growth And Steady Expansion
Europe: Pursuing Consistent Growth And Steady Expansion Therapy area focus Pipeline geared towards launch of branded Respiratory products Expansion into Dermatology via WINLEVI® and other in-house launches Prioritizing reduction of dependence on pure generics business Portfolio Adopting a focused po
Slide 19: North America: At An Inflection Point
North America: At An Inflection Point Growth has been Business has a well Glenmark maintains Approval-to-launch leadership position in conversion rate remains Focused on continuous challenging due to diversified portfolio key products high quality improvement multiple factors Revenue (US$ million) R
Slide 20: North America: Differentiated Launches To Drive Future Growth
North America: Differentiated Launches To Drive Future Growth Market opportunity1 FY25E FY26E FY27E FY28E (US$ billion) Injectable portfolio: partnered products + Monroe pipeline ~1.0 Respiratory portfolio: nasal sprays + pMDIs ~2.5 Key launches Select complex generic products ~0.7 Approved, settled
Slide 21: Collaboration Propels Innovation
Collaboration Propels Innovation Cyril Konto, M.D. President and Chief Executive Officer
Slide 22: IGI Combines Strengths From Ichnos And Glenmark
IGI Combines Strengths From Ichnos And Glenmark Strong platform of NBE and small molecules with presence across haematological cancers and solid tumors Robust pipeline Robust development capabilities of Ichnos in the U.S., research and discovery capabilities in biologics at Lausanne and small molecu
Slide 23: Diversity Of Immune Cell Engagement And Indications Across Hematologic And Solid Tumors
Diversity Of Immune Cell Engagement And Indications Across Hematologic And Solid Tumors * ISB 1342 – Phase 1 clinical study is currently suspended; future strategy is to out-license the asset and allow a potential partner to continue further development BEAT: Bispecific Engagement by Antibodies base
Slide 24: Roadmap For IGI
Roadmap For IGI FY25 FY26 FY27 Formation of IGI Clinical Proof-of- Partnerships Capital Raise Concept for ISB 1442 and/or ISB 2001 24
Slide 25: Strong Financial Principles To Support Growth
Strong Financial Principles To Support Growth V. S. Mani Executive Director and Global Chief Financial Officer 25
Slide 26: De-risking The Business In A Challenging Global Environment
De-risking The Business In A Challenging Global Environment Reduction in gross debt to counter rising interest rates Substantial progress in closing of key U.S. litigations Operational efficiency improvements leading to better core EBITDA margins Capital allocation decisions driven to maximize ROCE
Slide 27: Multiple Initiatives To Strengthen The Balance Sheet
Multiple Initiatives To Strengthen The Balance Sheet SG&A operational NBE operations excellence program to Majority stake sale spin-off to form IPO of GLS optimize other expenses of GLS Ichnos Sciences, Inc. FY19 FY20 FY21 FY22 FY23 FY24 API business spin-off to Sale of non-core portfolio Sale of no
Slide 28: Optimizing R&D Investments And Right-sizing CAPEX
Optimizing R&D Investments And Right-sizing CAPEX R&D expenses (₹ million) and R&D as % of revenue Capital expenditure (₹ million) Innovation R&D Tangible spend Core business R&D Intangible spend 13.2% 7-7.25% 12,980 12,372 7,880 6,572 ~4,000 ~7,000 5,100 5,800 FY19 FY25E FY19 FY25E R&D: Research &
Slide 29: Continuous Focus To Achieve High Return Ratios
Continuous Focus To Achieve High Return Ratios ROCE (FY25E)2 ROE (FY25E)3 ~19% ~15% ~16% ~14% Peer Average1 Glenmark Peer Average1 Glenmark 1. Based on Bloomberg consensus estimates of select listed pharmaceutical companies with a similar business model and geographical presence 2. ROCE = EBIT / Cap
Slide 30: Delivering On The Guidance
Delivering On The Guidance Investor Day 2022 Where we are today Revenue / Revenue growth 10-12% over next 3-4 years FY25: ₹1,35,000 – 1,40,000 million R&D expenses 8.5-9% from FY24 FY25: 7-7.25% EBITDA margin FY25: ~19%; Target 1-2% improvement each year 23% by FY27 from FY26 onwards CAPEX ₹7,000 mi
Slide 31: Glenmark's Long-term Targets Aligned With Evolving Ideologies
Glenmark’s Long-term Targets Aligned With Evolving Ideologies Focus on Generate further Stay averse to Drive shareholder revenue growth operating debt and remain wealth creation and continue to efficiencies to free cash drive capital drive continuous positive post any allocation basis margin CAPEX,
Slide 32: Thank You
THANK YOU www.glenmarkpharma.com © 2024 GLENMARK PHARMACEUTICALS LTD. ALL RIGHTS RESERVED