Dr. Reddy's Laboratories Ltd. · NSE:DRREDDY
Dr. Reddy's Laboratories — Jefferies Annual Healthcare Conference 2018
27 slides from Dr. Reddy's Laboratories's conference presentation, June 2018
Slide 1: Jefferies Annual Healthcare Conference
Jefferies Annual Healthcare Conference June 2018 Dr. Reddy’s Laboratories Limited Hyderabad, India BSE: 500124 | NSE: DRREDDY | NYSE: RDY
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation contains forward-looking statements and information that involve risks, uncertainties and assumptions. Forward-looking statements are all statements that concern plans, objectives, goals, strategies, future events or performance and underlying assumptions and
Slide 3: Contents
Contents Our Purpose Company Overview Recent Business Highlights Growth Roadmap Optimistic Future 3
Slide 4: Our Purpose
Our Purpose We accelerate access to affordable and innovative medicines Because Good Health Can’t Wait.
Slide 5: Our Purpose Guides Our Customer Value Proposition
Our Purpose Guides Our Customer Value Proposition Leading to Specific Strategic Choices PURPOSE OUR PROMISES Bringing expensive medicine within reach We accelerate access to affordable medicines Addressing unmet patient needs because Helping patients manage disease better Good Health Enabling and he
Slide 6: Company Overview
COMPANY OVERVIEW e @
Slide 7: Multidimensional business model to sustain long-term growth
Multidimensional business model to sustain long-term growth UNBRANDED BRANDED PROPRIETARY (US + EU) (EM + INDIA) PRODUCTS • Continued growth for mega Current • Maximize the base business • Monetize the complex/ limited brands through patient centric initiatives revenues through volume competition as
Slide 8: Recent Business Highlights
Recent Business Highlights 8
Slide 9: FY18 Financial Performance
FY18 Financial Performance FY18 Revenues FY18 EBIDTA FY18 FCF USD 2,181 M USD 370 M USD 93 M (YoY growth: 1%) (% of Sales: 17%) FY18 PBT FY 18 R & D Expenses Net Debt / Equity USD 220 M USD 281M 0.24 (YoY decline: 2%) (% of Sales: 12.9%) 9
Slide 10: Highlights of FY18
Highlights of FY18 Filings Observations Product launches Good filings No critical observations Exciting new product performance in multiple regulatory launches in NAG like 19 ANDAs & inspections in CTOs. Sevelamer, Lipo Dox, Palonosetron Inj, OTC FTO2 and FTO3 1 NDA filed in cleared regulatory hurdl
Slide 11: Delivering affordable generic alternatives in Unbranded Markets
Delivering affordable generic alternatives in Unbranded Markets 15 NEW PRODUCTS LAUNCHED IN NORTH AMERICA IN FISCAL 2018 First-To-Market launches of Palonosetron for Injection and OTC Levocetirizine Tablets • Affordable alternative for complex, limited-competition products • Multiple limited-competi
Slide 12: Biosimilars and small molecule Oncology assets fueling global expansion
Biosimilars and small molecule Oncology assets fueling global expansion Successful launches of Oncology products in EM and EU • Colombia, Brazil, Algeria, Spain, Italy Reditux™ paving the way for the entry of upcoming Biosimilar assets in new markets • Currently approved in 17 countries and availabl
Slide 13: Making a difference through Patient-centric Initiatives in Emerging Markets
Making a difference through Patient-centric Initiatives in Emerging Markets Our first wave of patient-centric packaging has been received well Four India Star awards for patient-centric packaging Push Tab feature in carton to (selected from 622 entries); now qualify for Asia star and Integrated fl
Slide 14: Addressing unmet needs in Derma and Neurology
Addressing unmet needs in Derma and Neurology Commercial Updates First set of launches Zembrace™ and Sernivo™ ramping up well, continue to focus on accelerating the commercial business’ path to profitability Promius Pharma recognized as an emerging R&D driven commercial organization in the neuro
Slide 15: Our Quality Journey
Our Quality Journey WE ARE COMMITTED TO EXCELLENCE IN QUALITY AND TO BEING THE BEST IN THE INDUSTRY U.S. FDA Audit Updates Sites Previously on Warning Letter CTO 5: Three observations in audit - Received EIR CTO 6: Received EIR: compliance pending FTO 7 Sterile Plant: Received EIR: compliance pendin
Slide 16: Growth Roadmap
Growth Roadmap e « ) r -)
Slide 17: North America Generics: Growth driven by limited competition products
North America Generics: Growth driven by limited competition products 2018 2021 • More than 50% of revenues to come from • Oral solid dosages account for almost 80% of Injectables, Topicals and other complex Portfolio the current revenues dosage forms • Injectables accounting for 20% of the revenues
Slide 18: Healthy Pipeline of First-to-market, Tough-to-make Products
Healthy Pipeline of First-to-market, Tough-to-make Products Bringing Expensive Medicine within Reach NUMBER OF PENDING FILINGS* BY DOSAGE PIPELINE HIGHLIGHTS FORM Topical/ Transdermal/ 107 pending ANDAs & 3 pending Vaginal, 9 NDAs (505b2s) Inhalation, 2 Softgel, 2 No incl. 63 para-IV and 30 first
Slide 19: India & Emerging Markets: Growth driven by patient centric initiatives
India & Emerging Markets : Growth driven by patient centric initiatives 2018 2021 • Portfolio augmentation and productivity improvement • Focus on mega brands • Step-up in Chronic and Super-specialty therapies expansion • India Strategic business development and M&A efforts • Improvement in new • Di
Slide 20: Biologics: Maximizing value of current assets in near to mid-term
Biologics: Maximizing value of current assets in near to mid-term while pursuing global development EU/US approval enabling studies initiated for pegfilgrastim Rituximab and bevacizumab approval enabling studies for EU/US expected to be BIOLOGICS REVENUE HAS GROWN AT APPROX. initiated in next 4 - 6
Slide 21: Biologics: Creating substantial value in long term from new portfolio choices
Biologics: Creating substantial value in long term from new portfolio choices while driving R&D productivity 6 commercial products; > 50 filings across 14 major countries FY20 Product Portfolio 5 new products in clinical development Strong and relevant play in Emerging Markets FY20 Business Profile
Slide 22: Proprietary Products: Aspiring to build a $400 million business by FY22
Proprietary Products: Aspiring to build a $400 million business by FY22 through a low-risk innovation model Specialty Dermatology Franchise • Established with the goal to address unmet needs of specific patient segments in • 3 Products approved; 1 asset commercialized Dermatology & Neurology and 2 l
Slide 23: Aurigene: Specialized Biotech division focused on Oncology and Auto-immune
Aurigene: Specialized Biotech division focused on addressing critical needs in Oncology and Auto-immune therapeutic areas BUSINESS MODEL OUTCOMES Focused on Oncology & inflammation 70+ integrated discovery programs resulting disorders in over 135 patents in the last 10 years Complementing infr
Slide 24: Optimistic Future
OPTIMISTIC FUTURE e « ) -)
Slide 25: Key Strategic Priorities
Key Strategic Priorities Strengthening Manufacturing & Quality Create culture encouraging Transparency and Compliance Creating Leaner and Flexible cost structures Focus on Manufacturing and R & D Network Rationalization, Improving Plant Operating Efficiency, R&D Productivity and Portfolio Optimi
Slide 26: Good Health Can't Wait.
Good Health Can’t Wait.
Slide 27: Contacts
Contacts Investor relations Media relations Saunak Savla Calvin Printer [email protected] [email protected] (Ph: +91-40-49002135) (Ph: +91-40-49002121) About Dr. Reddy’s: Dr. Reddy’s Laboratories Ltd. (BSE: 500124, NSE: DRREDDY, NYSE: RDY) is an integrated pharmaceutical company, committ
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