Transcript Cadila Healthcare Ltd Investor Presentation March 2009 OUR VISION Zydus shall be a leading global healthcare provider with a robust product pipeline and sales of.

Cadila Healthcare Ltd
Investor Presentation
March 2009
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OUR VISION
Zydus shall be a leading global healthcare
provider with a robust product pipeline and
sales of over $1 bn by 2010;
we shall achieve sales of over $3 bn by
2015 and be a research-based
pharmaceutical company by 2020.
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ZYDUS CADILA
- SNAPSHOT
 Ranked 5th in Indian formulations market. (Source : ORG IMS MAT Jan-09).
 Presence in developed generics markets (US, Europe, Japan) and emerging
markets (Brazil, South Africa, CIS, Taiwan, Philippines and select other
markets in Asia Pac and Africa region).
Formulations exports grew by ~70% in last 4 years.
 Market leader in niche consumer healthcare business with strong brands
 Focusing on R&D – spending 6-7% of revenues p.a.

Consol. ($ Mio.)
Operating Income
Operating PAT
FY 07-08
FY 06-07
% Gr
517
56
406
46
27%
23%
FY 08-09 (9 m) % Gr
25%
39%
Note : For convenience of understanding, INR numbers have been converted into USD by taking average exchange rate of USD 1 = INR 45.
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STATE OF THE ART FACILITIES
AND INFRASTRUCTURE
 Formulations – five manufacturing plants
Moraiya (Gujarat) - Largest integrated facility in Asia
Baddi (Himachal Pradesh) – for domestic and regulated markets
Sikkim – for domestic market
Goa – for semi regulated markets
Brazil – for catering to branded generics market
 Consumer Products
Moraiya (Gujarat) – for Nutralite
 APIs and Fine Chemicals – three plants
Ankleshwar and Dabhasa (Gujarat)
Fine chemicals facility at Ahmedabad (Gujarat)
 Contract Manufacturing
Mumbai – for Pantoprazole intermediates for Zydus Nycomed JV
Ahmedabad – for cytotoxic injectibles for Zydus Hospira JV
Ahmedabad – for cytotoxic facility for Zydus BSV JV
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CORE BUSINESS AREAS AND
REVENUE BREAK-UP (FY 07-08)
Revenue break-up by segment
India
India Others
Consumer
4%
7%
Exports APIs
10%
India
Formulations
50%
Exports
Formulations
27%
India APIs
2%
Revenue break-up by region
Emerging
Mkts.
12%
US & Europe
25%
Domestic
(India)
63%
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FINANCIAL HIGHLIGHTS
Operating Income ($ Mio)
▲ 27%
▲ 23%
EBIDTA ($ Mio)
▲ 31%
517
406
78
330
65
FY 05-06
FY 06-07
FY 07-08
FY 05-06
Operating Net Profit ($ Mio)
▲ 23%
▲ 24%
FY 06-07
FY 07-08
Operating EPS ($)
▲ 23%
56
0.45
▲ 24%
0.36
46
0.29
37
FY 05-06
102
▲ 21%
FY 06-07
FY 07-08
FY 05-06
FY 06-07
FY 07-08
Note : Operating Net Profit = Net Profit - Exceptional Items - Non Operating Items - Non Operating Forex Gains / Losses 6
INDIA FORMULATIONS
– SHIFT OF FOCUS
Portfolio shift from acute to life style and chronic segments
2007-08
2000-01
Dermatology
Othes
3%
Biologicals 14%
4%
CVS
15%
Othes
32%
GI
22%
Biologicals
2%
NSAID
12%
AI
17%
CVS
21%
Diagn.
3%
CNS
2%
Pain mngt AI
6%
10%
GI
16%
Respi.
10%
FHC
11%
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ACHIEVEMENTS IN INDIAN MARKET
• Zydus Cadila ranks 5th with $ ~275 Mio. sales.
(Source: ORG IMS MAT Jan-09)
• Leading positions in the key therapeutic segments – Cardiovascular,
Gastrointestinal, Female Healthcare and Respiratory (participated
market segments, as per ORG IMS MAT Jan-09)
• 16 Zydus brands feature amongst the top 300 brands.
(Source: ORG IMS MAT Jan-09)
• Exploring opportunities in rural market – next growth driver
• Launched >40 new products and line extensions so far in FY 08-09,
of which 15 were 1st in India.
• Entered dermatology market thru acquisition of Liva Healthcare
• Strengthened position in Neutraceuticals, Orthopedic, Diagnostics
and Cosmetology segments by adding devoted task forces
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INTERNATIONAL FORMULATIONS
- TWO FOLD FOCUS
Developed generics markets
Emerging markets
• US - the largest generic market
• Brazil – Nikkho (Branded), Zydus Brazil
(Generics)
• Zydus Pharmaceuticals USA Inc.
• Asia Pacific- Sri Lanka, Myanmar,
Taiwan, Philippines
• Europe - Zydus France SAS
• Laboratories Combix, Spain
• Africa, Middle East – South Africa
(Simayla), Sudan, Uganda, Algeria
• Japan-
• Nippon Universal Pharmaceuticals Ltd.
• CIS - Russia , Ukraine
International sales projections
Formulations-emerging
markets
120
56
Formulations- developed
markets
57
105
80
250
APIs/intermediates- exports
2007-08 US$ 217 Mio
2010-11 E US$ 450 Mio
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US – MARKETING PLAN AND
ACHIEVEMENTS SO FAR
Robust regulatory pipeline
 World’s largest generics market
at ~ $ 35 bn, growing at 10-12%
(Source : IGPA)
 Started operations in 2005
 Plan to file 12-15 ANDAs p.a.
ANDA
filings
80
ANDA
approvals
Products
launched
 Over half of the products use
own API.
71
DMF Filings
44
 Launched 22 products. Plan to
launch 8-10 products every year.
 Market share ranges between
5-25% in these products.
 Sales ~$ 79 Mio. (CY 2008)
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 Rated as one of the fastest
growing generic companies in US
by IMS
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EUROPE – KEY INITIATIVES SO FAR
Focus on Generics
Product Launches
New Markets
 Eur 2 bn market,
growing at ~11% (IMS)
 Launched >100
generic presentations
in France
 Entered Spanish
market (5th largest in
Europe) by acquiring
Laboratories Combix
 Over 2% share in
participated market,
one of the fastest
growing companies.
 Plan to launch of 1215 products p.a. in
France
Leveraging India’s lower cost
 Planning to enter
select other markets
Generics to drive our French business
29.0
Sales (Euro Mio)
45
43
41
21.8
31
26
11.5
18.6
29.0
6.3
10
New product filings
Filed
Site variation filings
Approved
Launched
5.2
3.2
FY 05-06
FY 06-07
Branded
Generics
FY 07-08
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BRAZIL – KEY INITIATIVES
 $ 10 bn pharmaceutical market, growing at ~12%
(Source : IMS)
 Entered generics market in 2005-06 thru 100% subsidiary, Zydus
Healthcare Brazil Ltda
 Filed dossiers for 40 products so far, of which 18 have been approved and
all have been launched
 Acquired of Nikkho do Brazil Ltda. in 2007-08 provides entry into fast
growing, profitable and sustainable branded generics segment.
 A profit-making co., Nikkho has a mfg. facility and strong marketing and
distribution network in Brazil.
 Present basket of ~20 brands has been expanded with launch of several
new brands from pipeline of existing brands and few acquired brands.
 Crossed sales of BR 68 Mio. (~$ 35 Mio.) in CY 2008 in Brazil, expected to
grow at over 20% annually.
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JAPAN AND OTHER EMERGING
GLOBAL MARKETS
 Acquired Nippon Universal Pharma. Ltd. in 2007-08 to gain entry in
generics market of Japan, valued at ~$3 bn, growing at ~12% (Source : IGPA).
 Plan to introduce new products in Japan through in-licensing route as
well product registrations from India.
 Presence in over 20 semi / non regulated emerging markets.
 Amongst top 3 Indian pharma cos. in Sri Lanka, Myanmar, Uganda and
Sudan.
 Focusing and developing base in rapidly growing markets of Russia,
South Africa, Taiwan and Philippines.
 Recently acquired majority stake in Simayla Pharma, South Africa.
Plan to launch several new products in South Africa within next 3 years,
from strong pipeline which we have built from India.
 Exports to these markets grew by >20% in last 4 years and crossed
$ 20 Mio. mark in FY07-08.
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CONSUMER HEALTHCARE –
BUILDING STRONG BRANDS
 Presence in low calorie sweetener and skincare products business in
India since more than 15 years.
 Sugar Free group - the healthier alternative to sugar
 Market leader in India with market share of >75%
(Source : AC Nielsen).
 Growing at CAGR of over 20% for last 3 years, the brand crossed
$ 14 Mio. sales mark in FY 07-08.
 Everyuth range of skincare products have also been growing at CAGR of
~ 20% for last 3 years.
 Acquired stake in Carnation Nutra-Analogue Foods Ltd., the
manufacturers of Nutralite, India’s largest selling margarine
 Revamped brand Nutralite post acquisition, which crossed sales of
$12 Mio. with 32% growth and registered positive bottom-line in FY 07-08.
 Restructuring of consumer business, with de-merger of consumer
business from Cadila in Carnation, which is now Zydus Wellness Ltd., is
aimed at unlocking business synergies and shareholders’ value.
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CONTRACT MANUFACTURING
- EXCITING PROSPECTS
 Zydus Nycomed JV – most successful contract manufacturing JV in India
 State of the art API mfg. plant for Pantoprazole intermediates
 Plan to expand scope of the JV, with more APIs to be sources by
Nycomed from this JV over next 2-3 years
 Zydus Hospira - JV for oncology injectables (Generics)
 State of the art cytotoxic facility located in an SEZ near Ahmedabad.
 Commercial production to start from Q1 FY 09-10
 Full capacity utilisation by FY 10-11.
 Zydus BSV - JV for oncology NDDS
 State of the art mfg. plant in SEZ near Ahmedabad
 Launched NDDS product in India in 2008 as Nudoxa
 33 other contracts with innovator and generic MNCs with peak revenue
potential of US$ 45 Mio.
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RESEARCH FOCUS


Zydus Research Centre (ZRC)

Located in Ahmedabad

Focused on NME Research &
NDDS
Pharmaceutical Technology
Centre (PTC)


Scientific Talent Pool ~ 800
NME & Drug
Discovery
325
Generics /
Developmental
325
API & Others
150
2 centers – one located in
Ahmedabad, another in Mumbai
R&D Spends – FY 07-08
Focused on Finished Dosage
Form Development & NDDS
NME & Drug
Discovery
22

API Process Research


Located in
Ankleshwar/Ahmedabad
Focused on Process Development
62%
Generics /
Developmental
11
32%
2
API & Others
6%
~ $ 35 Mio. (~7% of revenues)
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ZYDUS RESEARCH CENTER
- INVESTING FOR THE FUTURE
• NME Research, Biologicals (Biogenerics) & NDDS.
• Therapeutic Area: Dyslipidemia, Diabetes, Obesity, Inflammation.
• Infrastructure for target identification to pre-clinical research / early
clinical development.
• Multiple candidates under preclinical stage.
NME
Pipeline
NME
Pre Clinical
ZYH1
Dyslipidemia
ZYI1
Inflammation
ZYH2
Diabetes
ZY01
Obesity
ZYH7
Dyslipidemia
ZYT1
Dyslipidemia
IND Filing
Phase 1 Phase 2
Phase 3
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HIGHLIGHTS FROM LATEST
FINANCIAL RESULTS
Consolidated
Apr-Dec
08
$ Mio.
Apr-Dec
07
Growth
y-y%
Domestic Sales (Net)
Exports Sales
Total Net Sales
273
207
480
237
145
382
14.8%
43.4%
25.6%
Total Operating Income
490
391
25.1%
PBIDT
PBIDT % to Total Income
101
77
31.8%
60
44
38.6%
0.44
0.32
38.6%
Net Operating Profit #
NOP % to Total Income
Operating EPS $
(not annualised)
Note : Operating Net Profit = Net Profit - Exceptional Items - Non Operating Items
- Non Operating Forex Gains / Losses
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Thank You.
No part of this presentation may be reproduced, quoted or circulated
without prior written approval from Cadila Healthcare Ltd..
This presentation may include certain “forward looking statements” , based
on current expectations, within the meaning of applicable laws and
regulations. Actual results may differ and the company does not guarantee
realization of these statements.The Company also disclaims any obligation
to revise any forward-looking statements . The viewers may use their own
judgement and are advised to make their own calculations before deciding
on any matter based on the information given herein
www.zyduscadila.com
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