Zydus Lifesciences Limited · NSE:ZYDUSLIFE

Zydus Lifesciences — Cadila Healthcare — Investor Presentation (November 2017)

24 slides from Zydus Lifesciences's investor presentation, November 2017

  1. Slide 1: Cadila Healthcare Limited Investor Presentation

    Cadila Healthcare Limited Investor Presentation November 2017

  2. Slide 2: A Leading Pharmaceutical Company

    A Leading Pharmaceutical Company One of the leading pharmaceutical companies in India 1 With a Global Footprint #4 Market share of 4.3% Revenue Split for FY17 (%) APIs Alliances Animal Health 4% 2% & Others US Generics player (based on prescriptions) 2 5% #9 Market share of 2.89% Wellness 5% LatAM U

  3. Slide 3: Vertically Integrated Business Model with Presence Across The Pharma Value Chain

    Vertically Integrated Business Model with Presence Across The Pharma Value Chain Generics and Specialty and Biologics and APIs Niche Branded NCEs Vaccines Generics Business (1)  Selective backward  Increased focus on  Focus on pain  Biologics: 18 biosimilars  NCEs: 3 NCEs (2 new and (pipeline a

  4. Slide 4: Key Business Segments

    Key Business Segments Key Formulations Businesses Other Businesses & Emerging Businesses Alliances Divisions  India formulations  EU Formulations  Biologics  #4 by value1  Consumer Wellness  Vaccines  4.3% market share 1  Animal Health  NCEs  US formulations  APIs  #9 by prescription vol

  5. Slide 5: Track Record of Value Creation

    Track Record of Value Creation US$ MM 2 CAGR: 18% 1,492 1,500 Total Income 1,000 816 from Operations 1 284 500 - FY07 FY12 FY17 US$ MM 2 CAGR: 20% 300 235 200 Net Profit 1 123 100 37 - FY07 FY12 FY17 US$ MM 2 CAGR: 28% 10,000 7,599 7,500 Current Market Market Capitalization 4 5,000 2,512 7,035 Capit

  6. Slide 6: Key Business Segments

    Zydus rm life Key Business Segments

  7. Slide 7: US Generics: Strong Platform with Robust Pipeline

    US Generics: Strong Platform with Robust Pipeline Our US Formulations Business Our US Formulation Sales Gross Sales, US$ MM  #9 generics player in US (based on prescriptions) with a market share of 2.89% 1 800  Among top 3 players by prescription in all of top 10 products marketed in the US (Sourc

  8. Slide 8: Strong Filing Track Record and Addition to Capabilities

    Strong Filing Track Record and Addition to Capabilities Growing Focus on Complex Generics Business  Modified Release Oral Solids  Immediate Release Oral Solids  Transdermals  Complex Injectable  Topicals  Controlled Substances  Nasal Sprays Track Record of ANDA Filings # (filings annually) To

  9. Slide 9: Large ANDA Pipeline With Increasing Focus on Niche Filings

    Large ANDA Pipeline With Increasing Focus on Niche Filings Approved ANDAs by Type ANDA Pending Approval—Focus on Niche Segments As on 30 September 2017 As on 30 September 2017 Total Approved ANDAs — 1591 Total ANDAs Pending Approval—157 Nasals Topicals Nasal Spray Transdermal Injectables 1 4 Topical

  10. Slide 10: Strong Leadership in India Formulations Business

    Strong Leadership in India Formulations Business Leading Player in the $18 Bn Market of India 1 India Formulation Sales 2: Strong Base with Steady Growth One of the leading pharmaceutical companies US$ MM 4 #4 in India 1 600 8.9% 503 4.3% Domestic market share 1 462 412 400 16 Brands among top 300 p

  11. Slide 11: Focus on Key Therapeutic Areas in India

    Focus on Key Therapeutic Areas in India Key Therapeutics Areas for Zydus As per AWACS MAT September 2017; % of Zydus Sales Leadership positions (top 3) in Gynaecology, Respiratory, Anti-Infective Pain Management, Cardiovascular and Dermatology Others 15.0% 23.8% Trademark acquisitions to fill the po

  12. Slide 12: Other Growing Formulations Markets

    Other Growing Formulations Markets Latin America Emerging Markets Emerging Markets in Asia and Africa Zydus Size2 c.US$ 38 MM Zydus Size2 c.US$ 78 MM Zydus Growth ~12% Zydus Growth ~6%  Two large pharmaceutical markets in Latin America  Branded generics and generic generics  Branded generics and

  13. Slide 13: Other Businesses

    Other Businesses Europe Formulations Consumer Wellness  Operates through Zydus Wellness Limited, listed in India  Brand extensions and new product launches  Geographical expansion Zydus Size2 c.US$ 41 MM  ~US$ 71 MM revenues 2  Currently sale of ~115 products in France and ~80 products in Spain

  14. Slide 14: Successful Track Record of Global Partnerships

    Successful Track Record of Global Partnerships Value Creation Through Win-win Alliances and Be a Partner of Choice Zydus Takeda JV Zydus Hospira JV  50:50 JV with Takeda Pharmaceuticals  50:50 contract manufacturing JV with Hospira1 for cytotoxic injectable products  Currently manufacturing compl

  15. Slide 15: Manufacturing and Innovation

    Manufacturing and Innovation

  16. Slide 16: Strong Base of Cost Efficient and State-of-the-Art Manufacturing Facilities

    Strong Base of Cost Efficient and State-of-the-Art Manufacturing Facilities 32 9 Facilities across Facilities catering India, US, Brazil to US markets and Germany 17 facilities for formulations, 4 for API, 3 for vaccines, 3 for biologics, 3 for consumer wellness and 2 for animal health Capabilities

  17. Slide 17: Key Focus Areas for R&D

    Key Focus Areas for R&D R&D expenditure formed ~8% 1 of total operating revenues Generics Development  725+ scientists  Increasing focus on  complex dosage forms like transdermals, topicals and nasals  specialty products and 505(b)(2) route  316 US ANDAs filed, 159 ANDAs approved till 30th Sept

  18. Slide 18: Capabilities in Complex Segments

    Capabilities in Complex Segments Biologics Vaccines NCEs  18 biosimilars (pipeline and launched)  Launched 4 products, received  Launched Lipaglyn® – 1st NCE and 7 novel products (pipeline) marketing authorizations for 6 other developed by the company, for 2 indications (Diabetic Dyslipidemia and

  19. Slide 19: Key Financials

    Zydus rm life Key Financials

  20. Slide 20: Strong Financial Profile

    Strong Financial Profile Consolidated Revenues 2 EBITDA and PAT Margins 2 US$ MM 1 % 2,000 30% 24.2% 1,491 1,492 1,500 1,341 20.3% 19.8% 20% 20.1% 1,000 15.5% 10% 13.3% 500 0 0% FY15 FY16 FY17 FY15 FY16 FY17 2 Return Ratios2,3 Leverage (Net Debt / EBITDA) % x 40% 37.8% 2.5x 1.9x 2.0x 30% 25.8% 23.5%

  21. Slide 21: Key Financial Numbers – Q2 FY18

    Key Financial Numbers – Q2 FY18 Consolidated (US$ Mio.) 1 Amount Gr.% Revenue Split Q2 FY18 Total Income from Operations 498 34.6% APIs Alliances Animal Health 3% 1% & Others EBIDTA 132 67.5% Wellness 4% 4% LatAM Formulations EBIDTA % to Total Income from Ops. 26.5% 2% EU US Profit before tax 110 63

  22. Slide 22: Strategies For The Future

    Strategies For The Future 1 Strong execution focus for the US market; drive growth with continuous focus on product launches Focus on difficult to develop and manufacture and specialty products for the US market to improve 2 margins In India, focus on high growth Therapeutic Areas, in-licensing, out

  23. Slide 23: Building Blocks For Our Strategy

    Building Blocks For Our Strategy • Focus on best in class manufacturing Regulatory Compliance • People training and Quality • QUEST: Quality Excellence by Sustainable Transformation; Institutionalising a Culture of Quality Operational • PRISM – cost optimization program adopted in 2002 and instituti

  24. Slide 24: Thank You

    Thank You DISCLAIMER AND SAFE HARBOUR STATEMENT THIS PRESENTATION (PRESENTATION) IS NOT AN OFFER TO SELL ANY SECURITIES OR A SOLICITATION TO BUY ANY SECURITIES OF CADILA HEALTHCARE LIMITED OR ITS SUBSIDIARIES OR JOINT VENTURES (TOGETHER, THE “COMPANY”). The material that follows is a Presentation of

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