Presentation on theme: "Lupin Limited Corporate Presentation November 2009"— Presentation transcript:
1Lupin Limited Corporate Presentation November 2009
2Corporate Highlights Q2 09-10 Thirteenth successive quarter of growth in sales and profit.Growth secular across geographies.US Business grew by 20% in $ terms.India sustained high growth 20%.South Africa grew at above 35%..Working capital optimisation measures yield results.Capex spends sustained at over Rs. 112 crs to meet expected demand in capacities.Acquisition of Rights to Antara
7Corporate Highlights FY 08-09 Eleventh successive quarter of growth.Growth has been secular across SBUs and regionsParticularly strong in US,EU, Japan and IndiaYear of geographical expansion: Acquisitions in Germany, South Africa, Australia and Philippines. Strategic beach heads at a prudential cost…VRS at Aurangabad sets the tone for cost reduction endeavoursCreates momentum for our vision of being a significant world player over the next few years!!!Prudential strategies employed inOptimizing Working CapitalManaging LeverageAcquisitions
9USA Market Characteristics Operations Highlights : Largest Pharma market in the world. Generic Pharma market estimated at $ 48 billion (Dec ’08).OperationsBrandedSuprax Continues to reflect Strong Growth;Value growth robust - over 50%.Acquisition of rights to Antara and Allernase.GenericsLeading Market ShareMarket leader in 9 products of the 22 products in market.Among top 3 in Market Share in 19 of these products.98 ANDA’s filed; 35 approved to dateNo. of ANDAs filed in the FY 09-10: 8Emphasis on difficult to make products.Highlights :Per product revenues amongst Indian peers is the highest.9th largest prescription base amongst generic companies operating in the US. Highest amongst Indian Peers
11JAPAN Market Characteristics : Japan Pharma Market – $65 bn , Generics – 5% by valueOperations:Sales force of 55 salesman focusing on CNS, CVS, GI.H turnover over USD 50 Million – 34% growth yoy. Market Growth at 11%.Our early entry into Japan stand vindicated – market at inflection pointProfit enhancement measures to yield greater results in the days to comeHighlights:Seventh largest company in Generic space in JapanLaunched Levofloxacin and Bicalutamide in the current year.Launched10 products in FY08-09: Market leader in Risperidone in terms of no. of units. Significant player in Amlodipine.Gross Margin up by 5%
12EUROPE Market Characteristics Operations Highlights: Heterogeneous marketOperationsCefpodoxime Proxetil - FranceOver 60% market share through partnersCefpodoxime Proxetil France Suspension launched in Q3LisinoprilLaunched in UK; Secured 15% market shareAcquired Hormosan in the second quarter.Back ending production would enhance profitabilityTotal Filings in EU : 54Highlights:Success in the AOK bids in Germany for Setraline.
13AUSTRALIA Market Characteristics: Operations: Highlights: Market for generics and branded generics – A$ 3 bnOperations:Generic Health - Strategic Equity Participation at 47%Merged With Max Pharma to gain critical mass in operations.Among the top 10 generic companies in AustraliaSignificant minority stake acquiredHealthy pipeline of filingsParticipatory market size – A$ 850mRevenues commenced from Max Pharma (sale of 6 products currently.)Total Filings in Australia/NZ: 26Highlights:Evaluating options for challenging IPs in Australia.In Licensing four molecules from Actavis.
14SOUTH AFRICA Market Characteristics : Operations: Highlights: South African Pharma market - $ 2.5bn, Generics – 33% by valueOperations:Acquisition of majority stake in Pharma DynamicsSixth largest generic company in the South African Pharma MarketLeading presence in CVSAlliance with Aspen – the largest generic company in RSA continuesHighlights:Amongst the fastest growing company among generics (5 year CAGR over 30%).Growth sustained at over 35%.Leaders in Amlodipine and Bilocor by unit sales.
15INDIA - IRF Market Characteristics: Operations: Highlights: Size of Indian Pharma Market : USD 10 Billion. The market is fragmented in nature.Operations:Continue to be the fastest growing Pharma company in the domestic space. Growing at twice the industry average at 20%Field expansion accompanied by productivity increase, currently stands at 3598.54 new products were introduced in the year of which6 are In-licensed from within and outside India3 products were introduced for the first time in the countryThe growth rate in some of the major therapeutic segment viz. Cardiology, Diabetology, Anti Asthma, Anti-Infective are the best in industry (H )Cardiology : > 13% , Diabetology : > 28% , Asthma: 28%New Therapy areas to further propel growth : Bio Similars, Female HealthLaunched a new marketing division called “Femina”Highlights:Continued strong growth leads to 5th Rank (MAT IMS Mar 09) from 6th rank in previous year.Exclusive Collaboration withAmerican Institute of CardiologyJoslin Institute of Diabetology at MassachusettsEuropean Institute of NeurologyIn licensed 12 products till date
17Other Emerging Markets CISActual Turnover for the last fiscal up by 33%Steady increase in product registrationsExpanding Field Force –Russia, Ukraine, Azerbaijan, Kazakhstan, UzbekistanIncreased market penetrationFocus on building brandsIncreased product registration to enhance volumes in the next few quarters.
18API & Intermediates Global Leadership in chosen therapies One of the most profitable API business in Indian PharmaRobust operating performanceROCE comparable to the best in the segment at 33%Efforts on to widen therapeutic presenceNovodigm provides a step up to the CRAMS initiativesFocus on Cost & Quality Leadership and ReliabilityEffective asset utilizationStrategic input to formulations business with over 70% backward integrationSteady increase in filing of DMFs/ EDMFs/ CoS
20R & D: Country Total submissions Approvals US 98 35 EU 54 23 Over 500 scientists on our payrollRevenue Expenditure (Q ): Rs 822 Mn – 7 % of salesCountryTotal submissionsApprovalsUS9835EU5423Australia/ NZ2621NCE Program:In Clinical trials – anti migraine, anti psoriasis and anti TB.Pre Clinical ProgramsMetabolic DisordersInflammationCNSNecessary infrastructure is being strengthened & skill set enhancedHTS, SMPM, Electro-physiology
21US Generic Pipeline98 products filed, 35 approved. Market size USD 90 Billion.Para IV addressing market size of USD 30 BillionF2F:Desloratadine, Memantine, Duloxetine, Eszopiclone, Ziprasidone and PregablinWith Natco: Lanthanum CarbonatePotential Exclusive : Metformin (Fortamet), Fenofibrate (Antara)Differentiated/Difficult productsOral Contraceptives – 7 filed, 14 more to be filedNiche Products : Niacin XR (Niaspan) – second filter after Barr,Products with technology barriers: Fenofibrate(Tricor), SevelamerLiquids – 2 filed
22Lupin: Summary of Strategies Scaling and gaining critical massReplicating our Branded business model in new marketsDeveloping our specialty business, bio-similarsFocusing the US business on more specialised productsStrategic investments in APIs will support growth across all businessesTargeting doubling of sales growth every 4 years while improving operating marginGarnering market share in all markets,becoming bigger and noticeableDifferentiation/niche productsPortfolio going beyond standard genericsIncreasing share of products with some degree ofexclusivityGeographic Presence, organic/inorganicBroad and deep, covering established and emerging marketsProven skills to adapt rapidly to changing environmentConsolidation in existing marketsConsolidate through acquisitions in Japan, USA, IndiaVertical integration & Operational ExcellenceConstant focus on high quality at lowest costIncreased Focus on Bio Similars
23Proven Capabilities Across the Value Chain Differentiated products , Successful litigation experienceProduct IdentificationSourcingInnovative sourcing of products, RMExecution SkillsExecuting trials/projects at low costRegulatoryExperience in working with regulatorsFirst class capabilities , Synergies leveraging expertise of Generic R&DManufacturingMarketing and SalesProven strategies that drive market share, highly –productive sales force
24Being present in key markets around the globe Lupin sees itself as a transnational with sizable presence in various geographies of strategic interestThese would be a mix of branded generic and INN marketsWhilst geographical diversification would involve acquisitions, it would be based on prudence- ‘buy at a cost and not at all costs’.
25Lupin :the road ahead Challenges & Imponderables Near- Medium Term Value CreationGenericsBrandedProductsChallenges & ImponderablesChallenges common to all generic players – the changing landscapeChallenges of scale, growthIntegration of subsidiariesPeople challengesMedium-Long Term Value Creation(Proprietary Products)