Mankind Pharma Ltd. · NSE:MANKIND
Mankind Pharma — JP Morgan Healthcare Conference (January 2024)
24 slides from Mankind Pharma's conference presentation, Jan 10, 2024
Slide 1: Investor Presentation
INVESTOR PRESENTATION 10th January 2024
Slide 2: Safe Harbour Statement
Safe Harbour Statement The statements, are as on date and may contain forward-looking statements like the words “believe”, “expects”, “anticipate”, “aim”, “will likely result”, “would”, “will continue”, “contemplate” “intends”, “plans”, “estimates”, “seek to”, “future”, “objective”, “projects”, “goa
Slide 3: Our Philosophy & Our Vision
Our Philosophy & Our Vision To be an innovative pharmaceutical Company, most admired for its Affordability, Quality, and Accessibility of products. Affordability Accessibility Provide cost-effective Available across the and innovative length and breadth of healthcare solutions market Quality Providi
Slide 4: Mankind Pharma at a Glance
Mankind Pharma at a Glance #1 Youngest #4 4 Rank in Prescriptions Consumer Healthcare brands in Top 5 of the IPM* By value in the IPM* Market over the last five years* ranked #1 in their categories* Leadership INR 8,749 Crore 97% 22 15,000+ FY23 Revenue Domestic Revenue brands* worth INR 100 Cr+ Fie
Slide 5: IPM – High Growth Potential Market
IPM – High Growth Potential Market IPM: expected to grow at a CAGR of 10-11% Key Growth Drivers for IPM IPM Size (INR bn) Large population with increasing life expectancy 10-11% CAGR ~11% 3,000 – 3,100 Growing lifestyle diseases CAGR 1,859 Increase in health insurance coverage 661 FY12 FY22 FY
Slide 6: Mankind Pharma - Key Milestones
Mankind Pharma - Key Milestones Fastest growth in market share among the 10 largest corporates in the IPM 8th Rank between FY20-FY23 (0.3%) 4th Rank Sustained Growth in Domestic Formulations Market Share 4.1% 4.4% and Improvement in Ranking 3.3% 1991-95 2004 2007-10 2012 2015 2018-19 2020 2021 2022
Slide 7: Key Strengths
Key Strengths India revenues contribute 97% of revenues in FY23 Focus on Focus on 75% of manufacturing in-house; track record of domestic Strong In- domestic innovation with commercialization of business Volume- house business “Dydrogesterone” manufacturing growth driven Avg. Volume growth of 3x in
Slide 8: Domestic Business – Consistently Outperforming IPM
Domestic Business – Consistently Outperforming IPM Steady Growth in Domestic Revenue High Ranks across Acute and Chronic Areas* INR Crore FY 20-23 CAGR Rank in CVM Therapy Areas (Q2FY24) 8,453 Mankind IPM 7,595 Anti-Infectives 4 11% 8% 5,789 6,029 4,485 4,948 Cardiovascular 4 17% 11% Gastro Int 5 11
Slide 9: Domestic Business – Improving Trends
Domestic Business – Improving Trends Key Performance Highlights FY18 FY19 FY20 FY21 FY22 FY23 Value Growth YoY in IPM (%) 11.3 12.6 12.5 11.1 17.7 10.6 Market share by Value in IPM (%) 3.9 4.0 4.1 4.3 4.3 4.4 Market Ranking by Value in IPM (x) 4 4 4 4 4 4 CVM share in total IPM (%) 60.2 61.6 62.4 62
Slide 10: Increasing Share of Chronic Segment
Increasing Share of Chronic Segment Increasing share of chronic segment having higher price realisation and lifetime value Consistent focus to increase chronic contribution In H1FY24, Mankind registered 1.4x outperformance vs. IPM 4% 3% 4% 38 38 37 37 19 0.9x 1.4x 14 13 35 13 34 11 10 33 33 8 8 FY22
Slide 11: Increasing Market Share Trends in Chronic Segments
Increasing Market Share Trends in Chronic Segments Therapy wise share in Total Revenue FY18 FY19 FY20 FY21 FY22 FY23 ANTI-INFECTIVES 17.7 15.8 15.9 13.2 14.7 15.0 CARDIAC 10.1 10.8 11.5 12.6 12.1 12.8 GASTRO INTESTINAL 12.3 11.5 11.4 11.3 10.9 10.8 RESPIRATORY 7.6 8.0 8.7 7.2 9.7 9.5 PAIN / ANALGESI
Slide 12: 18 out of our 20 Highest Selling Brands Ranked among Top 3
18 out of our 20 Highest Selling Brands Ranked among Top 3 Brands in their Segments Ranking Brand Families with Domestic sales FY23 Mankind FY18 – FY23 in respective # Domestic Sales(1) Brands CAGR sub-group (INR Crores) (FY23) >INR 50 Crore 1 Manforce (Rx) 427 21% 1 2 29 1.3x 37 Moxikind-CV 347 13%
Slide 13: Multiple Growth Drivers Across Therapies
Multiple Growth Drivers Across Therapies Focused Therapeutic Comments Key notable/ examples Areas Among the key players in Teneligliptin and Anti-diabetic Foray into Insulin and SGLT2 inhibitors Vidagliptin; launched insulin glargine recently Launch new formulations for the treatment of Cardiovascul
Slide 14: Multi – Pronged Strategy for Growth
Multi – Pronged Strategy for Growth Merger and Acquisitions In-licencing R&D Acquisition of Brands Acquisition of Brands • Acquisition of Panacea • Acquired dermatology • In-licensed products • 2nd Global Company & Biotec enabled us to brand (Daffy) and Neptaz from Novartis 1st Indian Company to for
Slide 15: Intersection of Domestic Formulations and Consumer Healthcare with Brands of Scale
Intersection of Domestic Formulations and Consumer Healthcare with Brands of Scale Highest Selling Key Consumer Domestic Formulations Healthcare Brands Brands Defensiveness Against High Growth Potential High Entry Government Recession Market Barriers Initiatives Key Growth Drivers of Domestic Formul
Slide 16: …with Market Leading Brands
…with Market Leading Brands Dominant Brands in Consumer Healthcare #1 #1 #2 Condom Brand Pregnancy Test Kit Brand Antacid Powder Brand Market Share – 30% Market Share – 85% Market Share – 8% #9 #1 #1 Vitamins, Minerals, Nutrients Emergency Contraceptive Medicated Anti-Acne Brand Brand Brand Market S
Slide 17: Strong Corporate Identity Complements Brand Recall…
Strong Corporate Identity Complements Brand Recall… Strategically selected national and regional brand ambassadors Corporate Brand Ambassadors Consumer Healthcare Brand Ambassadors Kartik Aaryan Sunny Leone Anushka Sharma Kajal Aggarwal Srabanti Chatterjee Paresh Rawal & Brahmanandam Biswanath Basu
Slide 18: Exports Business
Exports Business Revenue from Exports INR Crore 339 296 186 187 120 76 FY20 FY21 FY22 FY23 H1FY23 H1FY24 • Focus on differentiated filings, including in-licensing for key markets • In addition to USA, the company is exporting to many countries including Sri-Lanka, Nepal, Uganda, Kenya etc. 18
Slide 19: Manufacturing and R&D Facilities with Capabilities across segments
28 Manufacturing and 6 R&D Facilities with Capabilities across segments Consistent Global Product Quality through Inhouse Manufacturing Manufacturing Units Installed 28 Facilities 44bn+ Capacity Manufacturing Dosage Forms 4,100+ Personnel 10+ Global USFDA, WHO GMP, EU GMP, ANVISA, Peru Audit, FDA Ph
Slide 20: Financials- Steady Track Record backed by Capital Efficiency
Financials- Steady Track Record backed by Capital Efficiency Revenue (INR Cr) EBITDA (INR Cr) and Margin %(1) PAT (INR Cr) and Margin % 25% 27% 26% 22% 25% 18% 21% 19% 15% 19% 14% CAGR 2,004 1,453 8,749 1,913 1,293 1,310 7,782 1,660 1,448 1,056 1,005 5,865 6,214 1,346 5,287 FY20 FY21 FY22 FY23 H1 FY
Slide 21: Healthy Cash Flow and Working Capital Cycle
Healthy Cash Flow and Working Capital Cycle Cash Flow from Operations Net Operating Working Capital Days INR Crore Acquisition related 45 45 45 44 GST impact 1,813 36 1,070 1,137 920 969 FY20 FY21 FY22 FY23 H1 FY24 FY20 FY21 FY22 FY23 H1 FY24 Historical Capex Net Cash INR Crore INR Crore Panacea Acq
Slide 22: Strategy Going Ahead
Strategy Going Ahead Increase the value of prescriptions in existing markets of strength by expanding market coverage; CVM moved from 62% in FY21 to 68% in FY23* Increasing share of chronic segment by growing presence in existing therapies (Diabetes - Insulin Glargine, Respiratory - Inhalers) and ex
Slide 23: Thank You
Thank You For more information please visit our website: https://www.mankindpharma.com For specific queries, contact: Investor Relations – 011 - 46846700 Investor.relations@mankindpharma.com
Slide 24: Annexures
Annexures • ROE = (Profit for the year) / (average total equity less cash) o Profit excludes interest income and gain on current investments measured at FVTPL • Adjusted ROE = (Adjusted profit for the year) / (average adjusted total equity less cash) o Profit excludes any M&A related impact, interes
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