Dr. Reddy's Laboratories Ltd. · NSE:DRREDDY
Dr. Reddy's Laboratories — Investor Presentation (June 2010)
33 slides from Dr. Reddy's Laboratories's investor presentation, June 2010
Slide 1: Dr. Reddy's Laboratories Ltd Investor Presentation, June 2010
Dr. Reddy’s Laboratories Ltd Investor Presentation, June 2010
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: Overview
Overview Global Generics Pharmaceutical Services and Active Ingredients Proprietary Products Looking Ahead 2
Slide 4: Purpose and Strategy
Purpose: Providing affordable and innovative medicines for healthier lives. Strategy: Leverage industry-leading science & technology, product offering and customer service with execution excellence. 3
Slide 5: Overview
Overview Global pharmaceutical company focused on active pharmaceutical ingredients & custom services, generics and proprietary products. Amongst the largest Indian pharmaceutical companies Revenues of U.S. $1.56 bn in FY2010 with a CAGR of ~ 25% over the last decade. Proportion of international (ex
Slide 6: The Last Decade
The Last Decade Built the foundations for a strong business. Moved up the value chain. Strengthened capabilities. Achieved scale and global presence. Growth aided by acquisitions. Revenues [USD Mn] 1,510 1,563 1,365 1,250 Germany & Mexico acquisitions Authorized generic launches 546 463 447 338 380
Slide 7: Integrated Business Model
Integrated Business Model Pharmaceutical Proprietary Services & Active Global Generics Products Ingredients • FY10 Revenue mix 2/3rd of total • Focus on building • FY10 Revenue mix 1/3rd sustainable and profitable of total • Finished dosage branded innovative businesses in business • Amongst the lea
Slide 8: Our Strengths
Our Strengths Industry leading chemistry skills which has resulted in several niche product opportunities (eg: fondaparinux, fexofenadine-pseudoephedrine, omeprazole mg) High vertical integration (~75% of APIs sourced internally), global leader in DMF filings (375 global DMFs as at March 2010) Criti
Slide 9: Infrastructure
Infrastructure API manufacturing : India – 6, Mexico – 1, UK – 1. All US FDA approved. Finished Dosages : India – 6 out of which 2 USFDA approved manufacturing US – 1 approved by US USFDA Biologics Facility : India - 1, audited by multiple regulatory agencies Custom Pharma : 3 Technology Development
Slide 10: Key Performance Highlights
Key Performance Highlights Focus on identified markets in Global Generics led to a strong base business performance in FY 10. Growth well-diversified across key markets of North America, India and Russia. Leading EBITDA generating player in India pharma (adjusted EBITDA of $ 356 mn in FY10, 23% to r
Slide 11: FY10 Performance
FY10 Performance • $356 mn • $1.56 bn • 23% to sales Adjusted Revenue EBITDA Adjusted Launches PAT & Filings • $208 mn • 103 launches • 13% to sales • 121 generics filings, 36 DMFs 10 Adjustments to EBITDA and PAT pertain to one-time charges for impairment and restructuring costs.
Slide 12: Key Balance Sheet Items
Key Balance Sheet Items $ mn Mar 2010 Mar 2009 Cash & Cash Equivalents 146 124 Inventory & Receivables 563 619 Property, plant & equipment 500 465 Goodwill & Intangibles 311 493 Loans & borrowings (current & non current) 327 438 Equity & Reserves 955 935 o Net Debt – Equity ratio of 0.19 [Mar-10] vs
Slide 13: Business Priorities
Business Priorities Pharmaceutical Proprietary Services & Active Global Generics Products Ingredients Create compelling value Improve depth in key Calibrate investments to for customers by markets through portfolio create a self sustainable leveraging IP, technology expansion and supply model and co
Slide 14: Financial Goals FY13
Financial Goals FY13 RoCE 25% Revenues $3 bn 13
Slide 15: Global Generics
Dr. Reddy’s Overview Global Generics Pharmaceutical Services and Active Ingredients Proprietary Products Looking Ahead 14
Slide 16: Global Generics
Global Generics Geographically well diversified with mix of generics and branded generics Global Generics Branded Generics Generics North GSK CIS,Venezuela, Germany UK India Russia Alliance America Romania & ANZ Key Priorities: Deepening market presence Differentiated product portfolio Supply chain
Slide 17: Global Generics: North America
Global Generics: North America Revenue ($ Mn), Excluding upside revenues 301 272 Upside revenues excluded in the Product Pipeline : ANDAs graph 199 Cumulative 158 FY07 $413 mn 109 Pending approvals 73 FY09 $149 mn 37 Para IVs 38 FY10 $53 mn FTFs 12 FY06 FY07 FY08 FY09 FY10 Note : All figures convert
Slide 18: North America: Growing annuity of opportunities
North America: Growing annuity of opportunities Opportunities Product Name FY09 FY10 FY11 FY12 FY13 FY14 FY15 Product A X Assured 180 days Product B X Exclusivity Product C X Sumatriptan X Rivastigmine X Desloratadine Settlements X (5mg / ODT / Pseudoephedrine) / Go early Finasteride 1 mg X Amlodipi
Slide 19: Global Generics: India
Global Generics: India Top Brands Mkt. Rank Top Therapeutic Areas Revenue ($ Mn) 226 Omez 1 Gastrointestinal (Rank #2) 179 189 Nise 1 Cardiovascular 155 133 Stamlo 1 Pain Stamlo Beta 2 Oncology (Rank #2) Omez-D 1 Paedia Razo 1 Anti-Infective Mintop 1 Diabetology Dermatology FY06 FY07 FY08 FY09 FY10
Slide 20: Global Generics: Russia
Global Generics: Russia 152 Top Brands Mkt. Rank Mkt Share Revenue ($ Mn) 125 Nise 1 61% 101 79 Omez 1 67% 60 Ketorol 1 51% Ciprolet 1 44% Cetrin 2 28% Enam 5 7% FY06 FY07 FY08 FY09 FY10 Note : All figures converted at the respective years’ average USD to INR translation rates Secondary sales trend
Slide 21: Global Generics: Germany
Global Generics: Germany Revenue (Euro Mn) 3 years back Branded market & influence of doctor equity 138 144 151 109 Intangibles/Goodwill ~ €450 mn Increasing influence of FY07 FY08 FY09 FY10 healthcare insurance companies & tender driven market Betapharm 5th largest in volumes among generic companie
Slide 22: Germany: Our Strategy
Germany : Our Strategy Number of Tenders Won Measures initiated to remain competitive in Germany Non Vert. Int. 15 13 12 Vertical integration to be taken up to 50 - 8 60% by value of our portfolio by end of 5 FY11 4 4 8 8 7 4 5 4 Significant restructuring of the manpower 2 AOK - 1 BKK TK IKK BKK DAK
Slide 23: Strategic alliance with GSK for Emerging Markets
Strategic alliance with GSK for Emerging Markets Branded Generics & Differentiated Formulations o Strategic alliance will combine Dr. Reddy’s portfolio of high quality branded pharmaceuticals and GSK’s extensive sales and marketing capabilities o The products will be manufactured by Dr. Reddy’s, lic
Slide 24: Pharmaceutical Services and Active Ingredients
Dr. Reddy’s Overview Global Generics Pharmaceutical Services and Active Ingredients Proprietary Products Looking Ahead 23
Slide 25: Pharmaceutical Services & Active Ingredients
Pharmaceutical Services & Active Ingredients Revenue ($ Mn) 407 413 404 430 216 FY06 FY07 FY08 FY09 FY10 Note : All figures converted at the respective years’ average USD to INR translation rates Customers include top generic manufacturers & innovators Cumulative DMFs : (Mar 10) o Amongst the leader
Slide 26: Proprietary Products
Dr. Reddy’s Overview Global Generics Pharmaceutical Services and Active Ingredients Proprietary Products Looking Ahead 25
Slide 27: Proprietary Products: Biologics
Proprietary Products: Biologics Built product development and manufacturing capabilities with a focus on becoming a leading integrated global player in generic biologics. Product Portfolio: Strategic focus on 2nd wave biologics Products are complex glycosylated proteins requiring specialized compete
Slide 28: Proprietary Products: Biologics
Proprietary Products: Biologics Multi-year Investment Plan to Build Integrated Capabilities and Infrastructure Current India-based team of 300 to increase to approximately 500 by 2013. Several years of proven cGMP manufacturing experience with a history of successful audits including approval for Eu
Slide 29: Proprietary Products: Differentiated Formulations and NCE R&D
Proprietary Products: Differentiated Formulations and NCE Research & Development Hybrid Differentiated Formulations/NCE Strategy anchored around : Specialty indications with feasibility to self-commercialize Higher conversion from preclinical-to-clinic Enabled by core capabilities : Strong internal
Slide 30: Proprietary Products Pipeline
Proprietary Products Pipeline GLP tox/IND- Preclinical Asset enabling Phase I Phase II Phase III testing studies Balaglitazone (NCE) Onychomycosis (DF) DRL-17822 (NCE) Pre-clinical pipeline includes a number of candidates across NCE / differentiated formulations in therapies such as dyslipidemia, de
Slide 31: Looking Ahead
Dr. Reddy’s Overview Global Generics Pharmaceutical Services and Active Ingredients Proprietary Products Looking Ahead 30
Slide 32: Highlights
Highlights FY 11 Guidance : RoCE of 18 – 22%. FY13 Goal : Revenues $3 bn & RoCE of 25%. Amongst the leading pipeline of ANDA & DMF filings globally. Strong & sustained cash flows expected from product opportunities such as Omeprazole Mg OTC, Fondaparinux & Fexofenadine pseudoephedrine. Attractive Em
Slide 33: Thank You
Thank You LIFE . RESEARCH . HOPE
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