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Investor Presentation
March 2017
A Leading Pharmaceutical Company
India
Well diversified business across geographies; Formulations
Presence in generics, branded generics, animal 35%
health, wellness and others
Selective backward Increased focus on Focus on pain Biologics: 25 in pipeline NCEs: 5 in the pipeline
integration niche categories management, (18 biosimilars and 7 novel
1st Indian company to
(Transdermal, dermatology and products)
Niche API supply to discover and develop an
Nasals, Controlled oncology products
key clients 8 launched in India and 2 NCE in-house:
Substances, Topicals
505(b)(2) filings in Emerging Markets Lipaglyn
etc.)
200+ dedicated
ExemptiaTM (biosimilar of
scientists Acquisition of Sentynl 3 indications of
650+ dedicated
Adalimumab) in India
Therapeutics Inc., Lipaglyn approved for
scientists
128 US DMFs filed
specializing in pain 70+ dedicated scientists, Phase II trials in US
Total 305 ANDAs filed management
Vaccines: 10 under
275 dedicated scientists
(as of Dec 31, 2016)
development,
Strong scientific advisory
75+ para IV filings
Received marketing
board
authorizations for 9 with 3
Generating ~85%
of them already launched State-of-art research facility
revenues from
formulations business 70+ dedicated scientists
across India, U.S. and
Dedicated, separate
other markets
facilities for biologics and
vaccines
3
Key Business Segments
Key Themes High, sustainable and High growth potential in Wellness and Complex technology with high entry
profitable growth Animal Health segments barriers for competition
Significant revenue contribution Large potential upside
Upfront investments
In-House
Capabilities 30 manufacturing locations 8 R&D sites across India, Highly experienced and
serving as across India, US, Brazil US and Italy committed management
bedrock of and Germany +1,200 employees team
organization
Manufacturing R&D Capabilities People
4
Track Record of Value Creation
US$ MM 2
CAGR: 21%
1500 1,469
US$ MM 2
CAGR: 26%
300
227
200
Net Profit 106
100
22
0
FY06 FY11 FY16
1. Market capitalization is calculated by applying the closing price of the financial year
2. US$ 1 = INR 67.00
3. As of 17 March 2017 5
Key Business Segments
US Generics: Strong Platform with Robust Growth
7
Strong Filing Track Record and Addition to
Capabilities
1. 9MFY17 filings include 2 ANDAs acquired from Teva (1 Orals - IR, 1 Transdermal) 8
Large ANDA Pipeline With Increasing Focus on
Niche Filings
Total Approved ANDAs1071 Total ANDAs Pending Approval198; market size of +$75 Bn2
Transdermal Topicals
Patches Nasal
Injectables 18
3 3
4 Transdermal
Patches
7
Orals -
Injectables Immediate
17 Release
Orals - Orals - 111
Orals -
Modified Immediate Modified
Release Release Release
23 77 42
Among top 3 for more than 70% of the products marketed in US Total 75+ Para IV filings
8.6% 11.1%
500
400
400
368
359
17 Brands among top 300 in India
300
200
Indian company to discover and develop an
1st NCE in-house: Lipaglyn (Saroglitazar)
100
1st Company to launch biosimilar of Adalimumab
0
FY14 FY15 FY16 9MFY17 ~5,900 Marketing field force 3
In-licensing arrangements
Pain
Management Gastro
9.1% Intestinal
#2 11.8%
#3
Womens Improving sales force productivity
Health Respiratory
9.6% 10.3%
#1 #2
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Other Growing Formulations Markets
Branded generics and generic generics Branded generics and generic generics
Brazil: 98 filings, 46 approvals ,45+ products commercialized Leadership position in several of these markets
Focused segments (Branded) Womens Health, Hepatology, Continue to expand geographical presence in select markets
CNS, CVS, Nutraceuticals and Pain Management
Leveraging existing portfolio of India and other regulated
markets
Source: IMS MAT December 16 Report and KNOBLOCH MAT December 16 Report Source: EvaluatePharma
Source: GERS and IMS Report for Europe as per MAT December-16
Leading animal healthcare player Backward integration capabilities to meet captive API requirements
Acquired select brands and manufacturing operations in India from 1 dedicated R&D unit and 4 manufacturing plants
Zoetis
128 DMFs, 200+ dedicated scientists
Global presence through Bremer Pharma, Germany
~US$ 56 MM revenues
2 manufacturing facilities at Haridwar (India) and Warburg (Germany)
~US$ 64 MM revenues
50:50 JV with Takeda Pharmaceuticals 50:50 contract manufacturing JV with Hospira1 for oncology
injectable products
State-of-the-art manufacturing facility for complex high-end APIs
of Takeda State-of-the-art cytotoxic facility approved by leading authorities
like MHRA, USFDA, TGA, Health Canada
Commercial supply of 10 products (incl. 1 for validation)
Commercial supplies: EU (12 products) and US (9 products)
Operates in female healthcare, metabolic disorders, diagnostic Received 1st NDA approval from US FDA (filed for a partner)
imaging, CVS, diabetes and oncology segments in India
Commercial supply of 15 products under the out-licensing deal
Leveraging strengths of Bayers optimised product portfolio and with Abbott
Zydus marketing and distribution capabilities
Out-licensing and distribution arrangements for biosimilars in
JV scope covers launch of innovator products of Bayer certain emerging markets like Turkey, Russia, Indonesia,
Columbia
30 11 +15 Bn
Facilities across Facilities Annual capacity
India, US, Brazil inspected by of pills
and Germany USFDA
16 facilities for formulations, 4 for API, 3 for vaccines, 3 for biologics, 2 for consumer wellness and 2 for animal health
Capabilities across platforms - Oral Solids, Controlled Substances, Injectables, Topicals, Lyophilized Injectable, Sprays
and Transdermals
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Key Focus Areas for R&D
R&D
Vaccines Biologics
70+ dedicated scientists 70+ dedicated scientists
10 vaccines under development Vaccines Biologics
Strong pipeline: 18 biosimilars and 7 novel products
Marketing authorization for 9 vaccines, 3 launched Launched 8 products in India and 2 in Emerging
1st Indian company to launch indigenously Markets
developed and manufactured H1N1 vaccine 1st to launch biosimilar of Adalimumab in India
VaxiFlu-S (in 2010) Strong IP position
1. For 9MFY17
17
Capabilities in Complex Segments
Launched 8 products in India and 2 in Launched 3 products, received Launched Lipaglyn 1st NCE launched
Emerging Market geographies marketing authorizations for 6 other by an Indian company for 2 indications
(Dyslipidemia and Hypertriglyceridemia)
Launched ExemptiaTM (biosimilar of First Indian company to launch
Adalimumab) 1st company in India indigenously developed and Phase III trials ongoing in India for 3
manufactured H1N1 vaccine indications (Lipodystrophy, NASH1,
Strong pipeline of 18 biosimilars and 7 VaxiFlu-S Type 2 Diabetes)
novel products (including products
launched) 10 vaccines under various stages of 3 indications approved for Phase II
development trials in US (NASH1, PBC2 and
4 products already in clinical Hypertriglyceridemia)
development phase 70+ dedicated scientists
4 other NCE molecules under various
Development of RabiMabs in stages of development
collaboration with WHO
ZYH7 (Dyslipidemia)
Wide range of indications covered
including oncology, nephrology, ZYDPLA1 in US (Type 2 Diabetes)
ophthalmology, infectious diseases,
osteoporosis, inflammation ZYAN1 (Anemia)
1. Nonalcoholic steatohepatitis
2. Primary biliary cholangitis
18
Key Financials
Strong Financial Profile
2 2
Consolidated Revenues EBITDA and PAT Margins
US$ MM %
2000 19.8% 13.7% 30%
24.2%
1600 1468 20.3% 20.3%
1291
1078 1060 20% 16.6%
1200
800 15.5%
10% 13.3% 13.7%
400 11.1%
0 0%
FY14 FY15 FY16 9M FY17 FY14 FY15 FY16 9M FY17
YoY Growth
EBITDA margins PAT margins
2
Return Ratios2 Leverage (Net Debt / EBITDA)
% x
40%
31.7% 2.5x
30.1%
30% 25.6% 2.0x 1.7x
1.5x 1.2x
20% 1.1x
21.0% 1.0x
18.3% 0.6x
10% 14.6%
0.5x
0% 0.0x
FY14 FY15 FY16 FY14 FY15 FY16 Dec-16 3
ROE ROCE
1 Strong execution focus for the US market; drive growth with continuous focus on product launches
2 Focus on difficult to develop and manufacture and specialty products to improve margins
In India, focus on high growth Therapeutic Areas, in-licensing, outperform the domestic market
3 and improve operational efficiency through increasing sales force productivity and
technological advancement
Select inorganic growth to expand in India, US and Emerging Markets, acquire capability platforms and
5
move forward in value chain on specialty and branded business
21
Building Blocks For Our Strategy
Operational PRISM cost optimization program adopted in 2002 and institutionalised across the group
Excellence SLIM - a Strategic, Lean and Integrated Manufacturing initiative
Continue to replenish generic pipeline in the US with profitable opportunities move towards specialty
In the branded generics / specialty markets of India and other emerging market to focus on additional growth from
Innovate For more advanced areas like biologics
Growth
Continue to invest behind, innovate and commercialize opportunities in biologics, vaccines and NCEs
Near term focus on emerging markets with longer term potential in developed markets
Selective M&A
Consolidation / leadership
22
Thank You
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THIS PRESENTATION (PRESENTATION) IS NOT AN OFFER TO SELL ANY SECURITIES OR A SOLICITATION TO BUY ANY SECURITIES OF CADILA HEALTHCARE
LIMITED OR ITS SUBSIDIARIES (TOGETHER, THE COMPANY).
The material that follows is a Presentation of general background information about the Companys activities as at the date of the Presentation. It is information given in
summary form and does not purport to be complete and it cannot be guaranteed that such information is true and accurate. This presentation has been prepared by and is the
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forward-looking terminology, including the terms believes, estimates, anticipates, projects, expects, intends, may, will, seeks or should or, in each case, their
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intentions, beliefs or current expectations concerning, amongst other things, its results or operations, financial condition, liquidity, prospects, growth, strategies and the industry
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Forward-looking statements are not guarantees of future performance including those relating to general business plans and strategy of the Company, its future outlook and
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important factors that could cause material differences to companys actual results. These include (i) our ability to successfully implement our strategy (ii) our growth and
expansion plans (iii) changes in regulatory norms applicable to the company (iv) technological changes (v) investment income (vi) cash flow projections etc.
The Company, as such, makes no representation or warranty, express or implied, as to, and does not accept any responsibility or liability with respect to, the fairness,
accuracy, completeness or correctness of any information or opinions contained herein. The information contained in this Presentation, unless otherwise specified is only
current as of the date of this Presentation. The Company assumes no responsibility to publicly amend, modify or revise any forward looking statements, on the basis of any
subsequent development, information or events, or otherwise. Unless otherwise stated in this Presentation, the information contained herein is based on management
information and estimates.
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may be, under the Companies Act, 2013). It is clarified that this Presentation is not intended to be a document offering for subscription or sale of any securities or inviting offers
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