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Zydus - Investor Presentation (Nov 10)
Zydus - Investor Presentation (Nov 10)
Investor Presentation
November 2010
BSE : 532321
NSE : CADILAHC
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Our Vision
2
A Snapshot
One of the oldest and the 5th largest in the Indian formulations market worth
over Rs. 450 bn (Source : ORG IMS MAT Sep-10)
Operations in US, Europe, Japan, Latin America, Asia Pacific, Africa and
Middle East regions
Market leader in niche Indian consumer wellness market with strong brands
Market Cap : Cadila Healthcare Ltd. > Rs. 140 bn (> $ 3 bn)
(29-Oct-10)
Zydus Wellness Ltd. > Rs. 20 bn (> $ 450 mn) (72% ownership)
Declared the Emerging Company of the year by ‘ET Award for Corporate
Excellence 2010’ 3
Well integrated company and expanding Globally
Revenue break up (%) by segment (FY 09-10)
Research and
Manufacturing
Development
4
State of the art facilities and infrastructure (1/2)
Formulations
Pain mngt GI
Dedicated task force of > 4400 people with 7% 17%
therapeutic focus
AI
11%
Recently expanded field force in Cardiology Respi.
FHC
10%
10%
by ~300 and in Respiratory by ~100 to further
strengthen our positions
Note : All market related information sourced from ORG IMS MAT Sep-10 8
International formulations : two-fold focus
Focusing on developed generic Driving growth in emerging markets
markets (~29% of global sales) (~10% of global sales)
9 US - Zydus Pharmaceuticals USA Inc. 9 Brazil –
9 Europe • Branded - Quimica e Pharmaceutica Nikkho
Do Brazil Ltda.
• France - Zydus France SAS
• Generics – Zydus Healthcare Brazil Ltda.
• Spain - Laboratorios Combix
9 Emerging Markets
9 Japan – Zydus Pharmaceuticals Japan Co. Ltd.
• Asia Pacific- Sri Lanka, Myanmar, Taiwan,
Philippines
• South Africa - Simayla Pharma. Pty. Ltd.
• Africa, Mid East - Sudan, Uganda, Algeria
Product Portfolio
9 Robust pipeline of new products across
markets
9 Initiatives to add specialty and niche
dosage forms in the portfolio
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Among the top 20 and one of the fastest growing
generic companies in US
Started operations in 2005 and adopted a
“Customer Centric Model”
35 products launched. 8 -10 products to be
added every year
14 products enjoy >20% market share
“Preferred Supplier” for many customers
Focusing on delivery based, difficult to make
products, the next growth driver
93
KEY REGULATORY STRENGTHS
115
A robust regulatory pipeline
Over half of the products use own API
58 Started filing ANDAs for Nasal
(7 so far) and Parenterals (15 so far)
Plan to file 12 -15 ANDAs p.a.
35
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Over 2.65 % market share in participated
French market; 30 product launches in Spain
Among top 10 in Euro 2.7 bn French generics market I
98
KEY STRENGTHS
54
43
41
Leveraging India’s low cost base –
42 started supplying over 35% of France
sales from India
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New product filings include 36 products
for Spanish market
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Strategies for Japan :
World’s 2nd largest pharma market
Generic market valued at >$ 3.5 bn, growing at ~12%, with very low generic penetration
of ~6% in value terms, 19% in volume terms (Source : IGPA)
Acquired Nippon Universal Pharma. Ltd. (NUP, now Zydus Pharma Japan)
with a marketing set-up and a small manufacturing
facility in FY 07-08
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Strategies for $ 13bn Brazilian pharma market
Expanded the branded basket to over 25 products with launch of several new
brands from India and a few acquired brands
Plan to launch several new products in South Africa from the group’s strong pipeline built
from India and leverage Simayla’s marketing capabilities
Registered CAGR of >20% over last 3 years with sales of Rs. 1590 Mio. in FY 09-10
14
Strong brand equity in highly potential
consumer wellness segment in India
Zydus Wellness Ltd. – spearheading operations in
consumer wellness segment
▲ 31%
Continuous thrust on category expansion through 190
launch of newer variants, also exploring possibilities
of launching new categories in wellness domain
Aim to cross sales of Rs. 500 cr. by 2013 # Excludes Exceptional Items 15
Unlocking value through win-win alliances
Zydus Nycomed JV – most successful contract
manufacturing JV in India
State-of-the-art mfg. facility for Pantoprazole key
intermediates
Commissioned the expanded facility to manufacture
complex high-end APIs for Nycomed
Zydus Hospira - JV for oncology injectables
State-of-the-art cytotoxic facility in SEZ – approved by
MHRA, USFDA, TGA and Health Canada
Plan to manufacture 6 oncology products
Commercial supplies for EU market commenced
Zydus BSV - JV for oncology NDDS
State-of-the-art mfg. plant in SEZ near Ahmedabad
Launched NDDS product in India as Nudoxa
Strategic out-licensing deal with Abbott Labs
To license 24 products for 15 key emerging markets
Option to include 40 additional products
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Ongoing Investment in Newer Portfolios
Worth over $ 180 bn
Long term
Biogenerics : 40 bn
Near term Transdermal : 10 bn
Vaccine : 22 bn
Pulmonary : 20 bn Topical : 16 bn
Transdermal : 10 bn
Current Business Injectables : 17 bn
Oncology : 55 bn
One of the leading players
in Indian pharma industry
and a strong player in
global generics market
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Biosimilars and Vaccines –
The Next Big Opportunity
Biosimilars :
Strong pipeline: 15 biosimilars and 2 novel products
Strong IP position either through own patent or non-infringing processes
120 experienced scientists dedicated to Biosimilars programme
End to end product development and manufacturing to be done in-house
Vaccines :
Acquired Etna Biotech, Italy, engaged
in vaccine research and development
State-of-the-art Vaccine Technology
Center under construction
Developed high quality vaccine for
H1N1 in-house
1st Indian co. to launch H1N1 vaccine
Several other vaccines under different
stages of development
20
Key Financial Numbers – H1 2010-11
Rs. Mio.
H1 H1 Growth
Consolidated Profitability
2010-11 2009-10 y-y%
Domestic Sales 11,609 9,770 18.8%
Exports Sales 10,286 8,376 22.8%
Total Gross Sales 21,895 18,146 20.7%
Total Income from Operations * 22,031 18,493 19.1%
EBIDT * 4,972 4,093 21.5%
EBIDT % to Total Income 22.6% 22.1%
Net Profit * 3,335 2,567 29.9%
Net Profit % to Total Income 15.1% 13.9%
EPS - not annualised (Rs.) * 16.29 12.54 29.9%
www.zyduscadila.com
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