Dr. Reddy's Laboratories Ltd. · NSE:DRREDDY
Dr. Reddy's Laboratories — Jefferies Global Healthcare Conference 2016
32 slides from Dr. Reddy's Laboratories's conference presentation, Dec 21, 2016
Slide 1: Jefferies Global Healthcare Conference 2016
Jefferies Global Healthcare Conference 2016 Alok Sonig EVP & Head North America Generics Dr. Reddy’s Laboratories Limited Hyderabad, India NYSE: RDY | NSE: DRREDDY | BSE: 500124
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: Our Purpose: Good Health Can't Wait
Slide 4: Contents
Contents Update on US FDA matter Executive Summary Company Overview Strong performance over the past decade Optimistic future FY17 Priorities Investor Presentation - 2016 Dr. Reddy’s Laboratories Ltd. 4
Slide 5: Update on ongoing US FDA matters
Update on ongoing US FDA matters November December January 2016 March 2016 May 2016 2015 2015 Warning Letter Response Submitted First status update Second status update Third status update For Three Sites Activity Status Document Control Done Electronic data reliability Nearly done Of the Warning Le
Slide 6: Executive Summary
Executive Summary Top Line Growth with Healthy Profitability Differentiated APIs for key customers Well-positioned 1 and internal commercialization for sustained profitable Growth in unbranded markets via growth given our proven 2 complex & limited competition assets capability in complex generics w
Slide 7: Recent Highlights: Proprietary Products
Our first set of NDAs Zembrace Recent & Sernivo launched in the US Highlights: Proprietary Products Closed three deals to In-license a assets Xeglyze, XP23829 E 7777
Slide 8: Recent Highlights: North America Generics
Recent Highlights: North America Generics Acquisition of 6 OTC brands with strong brand equity
Slide 9: Recent Highlights: Emerging Markets
Recent Highlights: Emerging Markets Reditux Approved in Russia and Venezuela!
Slide 10: Company Overview
Company Overview
Slide 11: Integrated business model
Integrated business model Pharmaceutical Services Global Generics Proprietary Products & Active Ingredients Access to affordable Fulfilling unmet and Partner of Choice medicines under-met needs FY16 Revenue mix 14% FY16 Revenue mix 83% FY16 Revenue mix 3% Investor Presentation - 2016 Dr. Reddy’s Lab
Slide 12: Key strengths and capabilities
Key strengths and capabilities Collaboration across business units Industry Vertically Early mover integrated leading Deep market product advantage organization presence in Biosimilars development with modern skills infrastructure Several niche product Branded generic markets - First to launch
Slide 13: Formulation manufacturing infrastructure and capabilities
Formulation manufacturing infrastructure and capabilities DOSAGE FORM CAPABILITIES DETAILS 10 Facilities out of which Tablets, Capsules, Oral Solids Pellets, bi-layers, • 4 USFDA approved of which 2 are located in USA (22 bn pills annual) Modified / Extended • 3 MHRA approved release, ODTs • 1 state
Slide 14: Globalized R&D to access the right talent to solve complex scientific challenges
Globalized R&D to access the right talent to solve complex scientific challenges Complex Chemistry Centre of Complex Injectable Excellence Centre of Cambridge, UK Excellence Leiden, Netherlands Canada UK Germany US Italy Complex • Product generics & Development Proprietary Centres, Hyderabad product
Slide 15: Sustainable performance over five years
Sustainable performance over five years
Slide 16: Sustainable revenue growth over last 5 years
Sustainable revenue REVENUES (Rs Cr) growth over last 5 years +10% Well placed to harness profitable growth 14,819 15,471 opportunities in the future 13,217 11,627 9,674 Sustained focus on - o Portfolio management o Operations excellence o Science & Technology capabilities o Superior Commercial choi
Slide 17: Profitable growth trends
Profitable growth trends All values in Rs Cr. 26% 4 5 ,0 0 0 EBITDA 28 % GROSS MARGIN 9,228 25% 26.6% ** 24% 24% 23% 1 0 ,0 0 0 62 % 8,540 4 0 ,0 0 0 26 % 9 ,0 0 0 7,580 60% 60 % 3 5 ,0 0 0 24 % 4,134 8 ,0 0 0 3 0 ,0 0 0 3,617 3,625 22 % 6,058 3,318 58 % 2,782 7 ,0 0 0 5,331 58% 2,541 57% 6 ,0 0 0 2
Slide 18: Our North America Generics base business grew at 15% CAGR
Our North America Generics BASE REVENUES (US $ M) base business grew at 15% CAGR ( FY16 Gr:12%) +15% 1,168 1,044 921 STRATEGIC FOCUS 738 671 Investments in capacity and facilities Build capabilities for complex dosage forms Augment capacities for Oral Solids and Injectables FY12 FY13 FY14 FY15 F
Slide 19: Russia business sustaining uncertain macro economic conditions
Russia business sustaining BASE REVENUES (Million Ruble) uncertain macro economic conditions +9% 10,005 10,115 8,891 8,041 STRATEGIC FOCUS 6,817 Focus on portfolio augmentation and productivity improvement Continue to Scale-up the OTC business Launch Biosimilar business with launch of FY12 FY1
Slide 20: Our India business grew at 12% CAGR
Our India business grew at BASE REVENUES (INR Cr) 12% CAGR (FY16 Gr:19%) +12% 2,129 1,787 1,571 STRATEGIC FOCUS 1,456 1,293 Deep focus on Chronic and Super-specialty therapies Strategic business development and M&A efforts FY12 FY13 FY14 FY15 FY16 Differentiated assets in relevant therapies Su
Slide 21: Despite modest performance, PSAI continues to be strategic differentiator
Despite modest BASE REVENUES (US $ M) performance, PSAI continues to be strategic 590 differentiator 500 400 417 345 STRATEGIC FOCUS • Accelerate first-to-market access for our partners through non-infringing IP positions • Invest in technology platforms to develop complex APIs FY12 FY13 FY14 FY15 F
Slide 22: Optimistic future
Optimistic future
Slide 23: Our purpose guides our customer value proposition and strategic choices
Our purpose guides our customer value proposition leading to specific strategic choices Purpose Our promises Our strategic choices Bringing expensive First-to-market, medicine within tough-to-make reach products We accelerate Addressing unmet Differentiated access to affordable patient needs formula
Slide 24: Healthy pipeline of high entry barrier products
Healthy pipeline of high entry barrier products Bringing expensive medicine within reach Number of pending ANDAs by dosage form Market shares of limited competition products have been stable Topical/ 79 pending ANDAs & 3 pending NDAs (505b2s) Transdermal of ~$45 billion of innovator brand sales valu
Slide 25: 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 Biologics revenue has grown at approx. 2 US INDs filed- 4 Rituximab and 40% CAGR over the last 10 years Peg-grafeel® Peg-GCSF Dr. Reddy’s peg filgrastim launched; End-to-end 3 development in-house Cre
Slide 26: 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 existing products; > 50 filings across 14 major countries Product • 5 new products in clinical development Portfolio • 5 new products in early development • Emerging Markets Revenue: $150
Slide 27: Proprietary Products: Building $500 million business by FY22
Proprietary Products: Building $500 million business by FY22 business through lower-risk innovation model Commercialization Reverse Promius Pharma: A Model focused on Translation-based unique, unmet-need solving patient Product driven Specialty challenges [focusing Development Dermatology and direct
Slide 28: Services aimed at improving patient outcomes or customer needs
Services aimed at improving patient outcomes or customer needs 1 2 3 • Provide innovative • Enable doctors • Value-added service services around and pharmacists to offerings our products create better API AND outcomes GENERICS PROPRIETARY PRODUCTS BRANDED GENERICS Investor Presentation - 2016 Dr. Re
Slide 29: FY17 Priorities
FY17 Priorities
Slide 30: FY17 Priorities
FY17 Priorities Growth Organization Operations Track progress on Strategic Continue to build on Supply chain Strengthen quality growth plan excellence initiatives management systems and processes Accelerate Biologics and Organization Simplicity and Design Proprietary Products organization
Slide 31: Good Health Can't Wait.
GOOD HEALTH CAN’T WAIT.
Slide 32: Contacts
Contacts Investor relations Media relations Kedar Upadhye Calvin Printer [email protected] [email protected] (Ph: +91-40-66834297) (Ph: +91-40- 49002121) About Dr. Reddy’s: Dr. Reddy’s Laboratories Ltd. (NYSE: RDY) is an integrated pharmaceutical company, committed to providing affordable
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