Natco Pharma Limited · NSE:NATCOPHARM
Natco Pharma — Investor Presentation (June 2017)
20 slides from Natco Pharma's investor presentation, June 2017
Slide 1: Corporate Presentation June 2017
CORPORATE PRESENTATION June 2017
Slide 2: Disclaimer / Important Disclosure
Disclaimer / Important Disclosure This presentation has been prepared by Natco Pharma Limited (the “Company”) solely for information purposes without regard to any specific objectives, financial situations or informational needs of any particular person. This presentation should not be construed as
Slide 3: Natco Pharma at a Glance
Natco Pharma at a Glance Vertically integrated pharmaceutical company with well diversified businesses across geographies – India, US and RoW Leading position in the domestic Oncology and Gastro Hepatology segments ─ Portfolio of market leading brands catering to various oncology diseases includ
Slide 4: Track Record of Consistent Growth and Value Creation
Track Record of Consistent Growth and Value Creation Natco Pharma’ s Stock Price Has Increased by Over 500% Since May- Revenue(1) Has Grown At A CAGR of 40% Over The Last 3 Years 14 INRmn 700 20,789 517% 10,897 7,614 8,531 600 FY2014 FY2015 FY2016 FY2017 500 EBITDA Has Grown At A CAGR of 53% Over Th
Slide 5: Key Business Segments
Key Business Segments Formulations API Others Domestic International (Domestic & Exports) Leading player in the domestic Focused on complex generics for Strategically important division Operations in Brazil, Canada, oncology and Gastro Hepatology the US Singapore and Australia Vertical int
Slide 6: Strong Growth in Domestic Formulations Business
Strong Growth in Domestic Formulations Business Leading position in Oncology and Gastro Hepatology Domestic Formulation Sales(1): Market Leading Growth domains INRmn Brands occupy the number 1 position in Oncology 6 segment 8,810* 3 Brands occupy the number 1 position in Hep-C segment capturing over
Slide 7: Leading Position in Domestic Oncology Segment
Leading Position in Domestic Oncology Segment Oncology Division Overview Oncology Revenue – Gross (INRmn) Entered the segment with launch of generic version of Imatinib in 2003 3,224 Portfolio of market leading brands – 6 brands occupy the number 1 position 2,526 1,947 Progressively widened it
Slide 8: Key Brands
Gastro Hepatology – Leading Market Position in Hep-C First Company to launch generic Sofosbuvir and its combinations for the Market Share(2) treatment of Hep-C in India & Nepal under its brand Hepcinat & Hepcinat 72% LP 37% 47% Hepcinat Market Non-exclusive licensing agreement with Gilead Scienc
Slide 9: Expanding Domestic Presence with Launch of New CnD Division
Expanding Domestic Presence with Launch of New CnD Division Cardiology and Diabetology Launched Cardiology and Diabetology (CnD) division in early 2017 Focus will be on niche molecules with high barriers to entry 9
Slide 10: US Market - Focus on Complex Generics
US Market - Focus on Complex Generics US FDF product portfolio is predominantly focused on high-barrier-to-entry products that are typically characterised by one or more of the following: - Intricate chemistry - Challenging delivery mechanism - Difficult or complex manufacturing process - May face c
Slide 11: De-risked Business Model through Partnerships with Global Pharmaceutical Players
De-risked Business Model through Partnerships with Global Pharmaceutical Players Mitigation Strategy US Market reach and Regulatory Challenges Adopted and successfully implemented partnership strategy for international formulations product ─ Has product specific partnerships with global generic pl
Slide 12: Expanding RoW Presence
Expanding RoW Presence RoW growth to be driven by Hep-C franchise expansion and continued business in LatAm and other Asian countries Hep-C driven markets Filed in over 40 countries Received approvals and import permits for over 10 countries Canada Launched first gTamilflu (75mg Capsule) Fil
Slide 13: Strong In-House API Development with Vertical Integration
Strong In-House API Development with Vertical Integration for Key Formulation Products Strategically important business – develops APIs primarily for captive API Strengths consumption of its FDF portfolio as well as third party sales Portfolio of 37 US DMFs with over 10 products under developmen
Slide 14: Strong Research & Development Capabilities
Strong Research & Development Capabilities Strong R&D capabilities demonstrated by its complex and niche product filings in formulations and API segments 22 ANDAs Approved (1 yet to be launched) 20 Para IV Filings(1) Two well equipped research facilities with capabilities across synthetic chemistr
Slide 15: Commitment to Manufacturing Excellence with a Culture of Quality and Compliance
Commitment to Manufacturing Excellence with a Culture of Quality and Compliance International Markets Formulations API Manufacturing Facilities Visakhapatnam Mekaguda Facility Chennai Facility Kothur Facility Facility GMP, USFDA, German Health Key Regulatory Tablets, Capsules, Cytotoxic & othe
Slide 16: Natco's Near and Long-Term Goals
Natco’s Near and Long-Term Goals Domestic Branded Formulations Complex Generics Maintain leadership position in Oncology and Gastro Hepatology segment Near term approval for some key molecules – Launch 8- 10 new products TAD for generic Copaxone in June 2017 Traction in the newly launched Cn
Slide 17: Experienced Management
Experienced Management Mr. V.C Nannapaneni Holds Masters degree in Pharmaceutical Administration from the Long Island University, US Chairman and Director Over 42 years of experience in the Pharmaceutical Industry Mr. Rajeev Nannapaneni Holds bachelors degree in Quantitative Economics and Hist
Slide 18: Demonstrated Track Record of Topline and Earnings Growth
Demonstrated Track Record of Topline and Earnings Growth Total Gross Revenue (1)(INRmn) EBITDA (INRmn) and EBITDA Margin (%) 25.7% 25.0% 25.3% 33.5% 20,789 10,897 6,974 8,531 7,614 2,752 1,960 2,131 FY2014 FY2015 FY2016 FY2017 FY2014 FY2015 FY2016 FY2017 PAT(2) (INRmn) and PAT Margin (%) ROE (%) ROC
Slide 19: Historical Financials
Historical Financials Consolidated Profit & Loss Statement Consolidated Balance Sheet (INRmn) (INRmn) Particulars 31-Mar-17 31-Mar-16 Particulars 31-Mar-17 31-Mar-16 Equity share capital 349 348 Revenue from operations (gross) 20,650 10,804 Other equity 16,144 12,609 Less : Excise duty Non-controlli
Slide 20: Historical Financials (Cont'd)
Historical Financials (Cont’d) Segment Breakdown (INRmn) Revenue Division (INRmn) 31-Mar-17 API, Domestic 512 API, Exports 1,325 API Gross Revenue 1,838 Formulations, Exports 3,947 Profit sharing Income 4,423 Formulations Onco 3,224 Formulations, Brand Pharma Non Onco 4,802 Formulations, 3rd party,