Transcript Lupin Ltd

Lupin
Investor Presentation Q3FY14
Vision: To be an innovation
led transnational company
Safe harbor statement
Materials and information provided during this presentation may contain ‘forward-looking statements’.
These statements are based on current expectations, forecasts and assumptions that are subject to risks
and uncertainties which could cause actual outcomes and results to differ materially from these
statements.
Risks and uncertainties include general industry and market conditions, and general domestic and
international economic conditions such as interest rate and currency exchange fluctuations. Risks and
uncertainties particularly apply with respect to product-related forward-looking statements. Product
risks and uncertainties include, but are not limited, to technological advances and patents attained by
competitors, challenges inherent in new product development, including completion of clinical trials;
claims and concerns about product safety and efficacy; obtaining regulatory approvals; domestic and
foreign healthcare reforms; trends toward managed care and healthcare cost containment, and
governmental laws and regulations affecting domestic and foreign operations.
Also, for products that are approved, there are manufacturing and marketing risks and uncertainties,
which include, but are not limited, to inability to build production capacity to meet demand,
unavailability of raw materials, and failure to gain market acceptance.
The Company disclaims any intention or obligation to update or revise any forward-looking statements
whether as a result of new information, future events or otherwise.
Lupin today
 8th largest Market Cap amongst Global Generic Companies ~$5.7 billion
 Revenues > $ 1.74 billion
 Top 4 Pharmaceutical company in India
 Secular growth across the geographies
 Onshore presence in 10 countries (significant presence across 4 countries)
 R&D expenditure @ 7.5% of net sales
 Vertically integrated
 12 manufacturing sites (5 US FDA approved) (2 sites in Japan)
Conversion rate: USD = INR 54.30
Awards & accolades

NDTV Business Leadership Awards - Pharma Company of the Year 2012

Lupin was ranked amongst top 2 pharma companies in the Great Place to
Work survey ‘Best Companies to work for 2013, India’ and amongst the
Top 50 companies overall

NSE included Lupin in the S&P CNX NIFTY index

Ernst & Young Entrepreneur of the Year 2011, for Life Sciences and Health
Care: Dr Desh Bandhu Gupta

Ernst & Young Family Business Award 2012: Ms. Vinita Gupta
 CVS Caremark Supplier Partner Award winner - Pharmacy Category for 2012
Consistent track record of growth
Net Sales - CAGR 27%
EBITDA - CAGR 29%
22,978
94,616
Figures in Rs. m
69,597
14,590
57,068
47,736
9,981
37,950
28,341
FY08
6,423
FY09
FY10
FY11
FY12
FY13
FY08
12,000
7,439
FY09
FY10
FY11
FY12
 Evolved into a multinational company with >70 % of turnover from outside India
►
4th largest pharma company in India
►
5th largest and fastest growing generic player in the US by prescriptions
►
7th largest and the fastest growing generic player in Japan
FY13
Profit & shareholder returns
Basic EPS (Rs.)
29.39
Net profit - CAGR 26%
13,142
Figures in Rs. m
8,626
12.17
FY08
FY09
5,015
FY09
19.43
FY10
FY11
FY12
Dividend %
100
FY08
19.36
8,676
6,816
4,083
10.00
15.84
FY10
FY11
FY12
125
135
FY 09
FY 10
FY13
200
150
160
FY 11
FY 12
FY13
FY 08
FY13
Business Mix – FY13
Geographical breakup
Outside
India
72%
US sales split
India
28%
Brand
21%
Generic
79%
Major markets (Net sales)
Sales break up
API
10%
Formulations
90%
6% 10%
40%
US (including IP)
Europe
3%
India
Japan
14%
South Africa
Rest of world
25%
2%
API
Corporate Highlights 9MFY14
Net Sales Rs. m 80,351
EBITDA Rs. m
22,371
Net Profit Rs. m 12,834
69,243
9,061
16,329
9MFY13
9MFY14
9MFY13
9MFY14
 Consistent performance:
9MFY13
9MFY14
 Continued investment for growth
Net sales grew by 16% to Rs. 80,351 m during
9MFY14
Capital expenditure at Rs. 3,639
m
PBT grew by 45% to Rs. 20,360 m during 9MFY14
Revenue expenditure on R&D
8.5% of net sales at Rs. 6,838 m
US & Europe business (including IP) grew by 30%
South Africa grew by 19%
Filed 12 ANDA & received 19
approvals
Q3FY14 performance
Corporate Highlights Q3FY14
Net Sales Rs. m
29,830
8,057
Net Profit Rs. m
4,761
6,314
24,659
Q3FY13
EBITDA Rs. m
3,352
Q3FY14
Q3FY13
Q3FY14
 Consistent performance:
Q3FY13
Q3FY14
 Continued investment for growth
Net sales grew by 21% to Rs. 29,830 m during
Q3FY14
Acquired Nanomi B.V. in
Netherlands
PBT grew by 33% to Rs. 7,379 m during Q3FY14
Capex at Rs. 1,041 m
US & Europe business (including IP) grew by 29%
Revenue expenditure on R&D
9.1% of net sales at Rs. 2,710 m
South Africa grew by 18%
Business Mix – Q3FY14
US sales split
Geographical breakup
11%
25%
India
Brand
Outside India
Generic
89%
75%
Major markets (Net sales)
Sales break up
5%
3%
10%
10%
US (incl. IP)
45%
Europe
India
API
Japan
13%
Formulations
South Africa
ROW
90%
22%
2%
API
Business update
United States & Europe
Net sales (Rs. m)
14,228
 US business grew 31% to Rs. 13,567 m in Q3FY14
from Rs. 10,390 in Q3FY13 & contributed 45% to
overall revenues
10,988
 Brand business contributed 11% to US sales, while
generics contributed 89%
 5 products launched during the quarter
Q3FY13
Q3FY14
 Acquired Nanomi B.V. in Netherlands.
Nanomi has patented technology
platforms to develop complex
injectable products.
 Filed 5 ANDAs & received 5 approvals
during the quarter
 Current product portfolio of 62 products
 No. 1 market share in 26 products & Top 3 market
share in 44 products
 Europe business grew 11% to Rs. 661 m in Q3FY14
from Rs. 598 m in Q3FY13 & contributed 2% to
overall sales
India
 India formulations sales grew by
14% to Rs. 6,504 m during
Q3FY14

Anti-TB
14%
23%
9th
largest Indian company in
domestic market**
Anti - Asthama
4%
4%
Anti Biotics +
Ceph Oral & Inj.
 Launched 8 new products during
the quarter
8%
8%
partnership with MSD to co –
market MSD’s PPV in India
** Source : (AICOD AWACS MAT Dec 13)
Anti Diabetic
Gastro
Intestinal (GI)
 Field force strength +5,000 no.’s
 Entered into strategic
CVS
Therapy Mix
10%
15%
14%
CNS
Gynaecology
Others
Japan & ROW
Net Sales (JPY m)
6,046
South Africa
 4th largest Generic Pharma company
5,497
 # 1 CVS player in South Africa
 5 products registered during the quarter
Philippines
Q3FY13
Q3FY14
 Q3FY14 Japan sales stands at Rs. 3,720 m
 Strong presence in CNS, CVS, GI & Respiratory segments
 Focus on improving I’rom overall business quality
 Commercialization for products developed in India
 Ranked 28th as per IMS MAT Nov 2013
 Growth of 23% vs. industry growth at 3%
 Oncology division & 2 products launched
during the quarter
 Kyowa field force size increased from 95 to 114
Australia
 Azithromycin, TS 1, Pitavastatin & Valacyclovir launched
 Launched Terbinafine during the quarter
during the quarter
API and intermediates
 Cost, quality and reliability are the cornerstones of our API
strategy
 Strategic input into formulations business
 Global leadership in chosen therapies
► Cephs
► Ceph-intermediates
► Anti-TB
range
 Achieved global cost, capacity and market share leadership in
most products
Globally Integrated Research &
Manufacturing network
Nagpur
R&D
7,098
R&D spends (Rs. m)
4,834
5,228
3,570
1,359
1,546
FY07
FY08
2,318
FY09
FY10
 R&D expenditure Q3FY14 stands at Rs.




2,710 m, 9.1% of net sales
Talent pool of 1200+ scientists
186 ANDA filings, of which 96 have been
approved by the USFDA
Filed 5 ANDA & received 5 approvals
during the quarter
Increased focus on F2F
FY11
FY12
FY13
 NDDD:
► Pipeline of 10 programs in
various phases of drug discovery
 Bio-similars:
► Approval received for GCSF
(Filgrastim)
► Pipeline of 10 drugs in various
phases of development
Globally integrated supply chain
Highlights
Capabilities

Capex of Rs. 1,041 m during Q3FY14


Successful inspections of plants by various regulatory
housing 12 sites
agencies without critical observations:

USFDA : Tarapur, Dabhasa, Indore & Aurangabad
(Zero 483 in all inspections)



MHRA : Indore, Mandideep


ANVISA: Ankleshwar, Tarapur
Supply chain initiative rolled out to efficiently meet
global scale up & complexity challenges
►
5 API sites
►
7 formulation sites
5 FDA inspected sites
Manufacturing capabilities across tablets,
capsules, liquids, injectables and MDIs


Frost & Sullivan in association with The Economic Times
conferred “Manufacturing Excellence Award”



TGA : Mandideep
MCC: Aurangabad
10 manufacturing locations (2 in Japan)
Combined capacity of ~ 20b dosage units
Mihan formulation site for US commissioned
Sep’13


OCs launched in U.S. market from Indore
Investments in - ophthalmology, derma and
inhalers
Growth Levers & Enablers
• Healthy pipeline
• Value added generics
• Specialties
• NDDR program
• Disruptive costs
• Supply chain efficiency
• Geographical expansion
• Brands
• Platform technologies
R&D
M&A
Supply
Chain
People &
Capability
• Leadership pipeline & capability
building
• Sustainability initiatives (people,
planet & profitability)
Thank You