Transcript Lupin Ltd

Lupin
Investor Presentation Q2FY14
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 H1FY14
Net Sales Rs. m
EBITDA Rs. m
14,314
50,521
44,584
H1FY13
10,014
H1FY14
H1FY13
Net Profit Rs. m
8,072
5,709
H1FY14
 Consistent performance:
H1FY13
H1FY14
 Continued investment for growth
Net sales grew by 13% to Rs. 50,521 m during
H1FY14
Capital expenditure at Rs. 2,527
m
PBT grew by 53% to Rs. 12,981 m during H1FY14
Revenue expenditure on R&D
8.2% of net sales at Rs. 4,128 m
US & Europe business (including IP) grew by 30%
South Africa grew by 19%
Filed 8 ANDA & received 14
approvals
Q2FY14 performance
Corporate Highlights Q2FY14
Net Sales Rs. m
26,315
EBITDA Rs. m 7,410
Net Profit Rs. m
4,062
5,202
2,905
22,393
Q2FY13
Q2FY14
Q2FY13
Q2FY14
 Consistent performance:
Q2FY13
Q2FY14
 Continued investment for growth
Net sales grew by 18% to Rs. 26,315 m during
Q2FY14
Capital expenditure at Rs.
1,438 m
PBT grew by 53% to Rs. 6,755 m during Q2FY14
Revenue expenditure on R&D
8.3% of net sales at Rs. 2,172 m
US & Europe business (including IP) grew by 31%
South Africa grew by 24%
Filed 7 ANDA & received 6
approvals
Business Mix – Q2FY14
US sales split
Geographical breakup
Brand
10%
India
28%
Outside
India
72%
Generic
90%
Major markets (Net sales)
Sales break up
11%
API
11%
Formulations
89%
6%
39%
4%
US (incl. IP)
Europe
India
Japan
12%
South Africa
ROW
25%
3%
API
Business update
United States & Europe
Net sales (Rs. m)
11,089
8,444
 US business grew 32% to Rs. 10,349 m in Q2FY14
from Rs. 7,818 in Q2FY13 & contributed 39% to
overall revenues
 Brand business contributed 10% to US sales, while
generics contributed 90%
 Received 6 approvals during the quarter
 5 products launched during the quarter
 Current product portfolio of 57 products
 No. 1 market share in 25 products & Top 3 market
share in 40 products
Q2FY13
Q2FY14
 Europe business grew 18% to Rs. 741 m in Q2FY14
from Rs. 626 in Q2FY13 & contributed 3% to overall
sales
India
 India formulations sales grew by
9% to Rs. 6,635 m during
Q2FY14

 Launched 7 new products during
the quarter
Anti-TB
13%
22%
Anti - Asthama
4%
9th
largest Indian company in
domestic market**
4%
Anti Biotics +
Ceph Oral & Inj.
8%
9%
 Field force strength +5,000 no.’s
 Entered into strategic
partnership with MSD to co –
market MSD’s PPV in India
** Source : (AICOD AWACS MAT Sept 13)
CVS
Therapy Mix
9%
Anti Diabetic
Gastro
Intestinal (GI)
CNS
15%
16%
Gynaecology
Others
Japan & ROW
Net Sales (JPY m)
4,849
4,692
South Africa
 4th largest Generic Pharma company
 # 1 CVS player in South Africa
 3 products registered during the quarter
 1 product launched during the quarter
Q2FY13
Q2FY14
 Q2FY14 Japan sales stands at Rs. 3,093 m
 Strong presence in CNS, CVS, GI and Respiratory
segments
Philippines
 Ranked 32nd as per IMS MAT Aug 2013
 Growth of 9% vs. industry growth at 3%
 New packaging facility at Sanda complete
 2 products launched during the quarter
 Focus on improving I’rom overall business quality
Australia
 Commercialization for products developed in India
 Kyowa field force size increased from 75 to 100
 2 new products launched 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 Q2FY14 stands at Rs.




2,172 m, 8.3% of net sales
Talent pool of 1200+ scientists
183 ANDA filings, of which 92 have been
approved by the U.S. FDA
Filed 7 ANDA & received 6 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. 1,438 m during Q2FY14


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