Creating Lasting Value - Investor Presentation - February 2021 - Sun Pharma
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Creating Lasting Value Investor Presentation – February 2021 NSE:SUNPHARMA | BSE:524715 | Bloomberg:SUNP IN | Reuters:SUN.BO WWW.SUNPHARMA.COM
Disclaimer Except for the historical information contained herein, statements in this presentation and the subsequent discussions, which include words or phrases such as “will”, “aim”, “will likely result”, “would”, “believe”, “may”, “expect”, “will continue”, “anticipate”, “estimate”, “intend”, “plan”, “contemplate”, “seek to”, “future”, “objective”, “goal”, “likely”, “project”, “should”, “potential”, “will pursue” and similar expressions or variations of such expressions may constitute "forward-looking statements". These forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those suggested by the forward-looking statements. These risks and uncertainties include, but are not limited to our ability to successfully implement our strategy, our growth and expansion plans, obtain regulatory approvals, our provisioning policies, technological changes, investment and business income, cash flow projections, our exposure to market risks as well as other risks. Sun Pharmaceutical Industries Limited does not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date thereof. © Sun Pharmaceutical Industries Limited. All Rights Reserved. 2
Contents
1 Sun Pharma at a glance
2 Long-term Strategy
3 Global Specialty Initiatives
4 Revenue Composition, History & Acquisition Track Record
5 Business Operations, R&D, Manufacturing
6 Corporate Governance
7 Financials – P&L, Balance Sheet, Cash Flows & Ratios
8 Key Milestones Targeted
© Sun Pharmaceutical Industries Limited. All Rights Reserved. 3Sun Pharma at a glance
4th Largest Global Specialty Generic Company*
US • Ranked 11th in US Generics Market##
India • No. 1 Pharma Company in India
• Amongst the largest Indian Pharma Company in Emerging
Emerging Markets Markets
Rest of World • Expanding presence in Rest of World
Manufacturing Footprint • 43 manufacturing sites across the world
• Presence in more than 100 countries across branded and generic
Market Presence markets
Employees • 36,000+ global employee base
• Multiple manufacturing facilities approved by various regulatory
Quality Compliance authorities across the world including USFDA
• Capabilities across dosage forms like injectables, sprays,
R&D and Manufacturing ointments, creams, liquids, tablets and capsules
• Specialty products, branded generics, complex generics, pure
Addressable Segments generics & APIs
*Source: Evaluate Pharma Estimates for 12 months ended Dec 2019
## Source: IQVIA data for 12 months ended Dec 2020
© Sun Pharmaceutical Industries Limited. All Rights Reserved. 4World’s 4th Largest Specialty Generic Pharma Co
0.0 2.0 4.0Generic Sales
2019 Worldwide 6.0(US$ in billions)
8.0 10.0 12.0
Mylan 10.9
Teva 8.9
Novartis 8.4
Sun Pharma + Taro 4.4
Pfizer 3.4
Fresenius 3.3
Aurobindo 2.8
Lupin 2.3
Cipla 2.3
Aspen 1.9
Apotex 1.8
Dr. Reddy 1.8
Sawai 1.7
Himka 1.6
Zadus Cadila 1.6
Les Laboratoires 1.5
Source: Evaluate Pharma Estimates for 12 months ended Dec 2019
© Sun Pharmaceutical Industries Limited. All Rights Reserved. 5Sun Pharma today
US Formulations India Branded Generics
11th largest generics company in US* with a strong No.1 ranked with 9 classes of doctor categories
pipeline (90 ANDAs & 8 NDAs awaiting approval) Leading position in high growth chronic therapies
Presence in generics, Specialty branded segments with Specializes in technically complex products
more than 550 approved products FY20 sales: US$ 1,369 mn (2)
FY20 sales: US$ 1,487 mn (2) Emerging Western
(1) Markets Europe &
• Market cap: US$ 21 bn 17%
India Other
31% • Gross Sales: US$ 4,559 mn (2) Markets #
14%
EBITDA: US$ 913 mn (20% margin) (2)
Geographical
•
Revenue
sales split
Break-up
India
API & Others
FY20 • R&D Investment: 6% of Sales Branded FY20 6%
Generics
• Globalized supply chain 30%
• 55% owned by promoter group US
International • Strong balance sheet, low debt Formulation
33%
69%
Emerging Markets Western Europe, Canada, Japan ANZ & others
Presence in about 80 countries across Africa, Americas, Presence across majority of markets in Western Europe,
Asia and Eastern & Central Europe Canada, Japan and A&NZ
Key focus markets –Romania, Russia, South Africa, Brazil Product portfolio includes differentiated offerings for
& Mexico and complementary & affiliated markets hospitals, injectables and generics for retail market
FY20 sales: US$ 776 mn (2) FY20 sales: US$ 638 mn (2)
Note:
(1) As of Feb, 08, 2021 using spot exchange rate of INR /USD = 72.90
(2) Using average exchange rate for FY20 of INR /USD = 70.91
# Includes Western Europe, Canada, Australia & New Zealand, Japan and other markets.
All sales numbers in US$ for 12 months ended March 31, 2020.
* Source: IQVIA data for 12 months ended Dec 2020
© Sun Pharmaceutical Industries Limited. All Rights Reserved. 6Driving Long Term Growth
• Optimize operational costs
• Enhance share of specialty business
globally • Vertically integrated operations
• Achieve differentiation by focusing on
technically complex products
• Focus on key markets – achieve
critical mass
• Speed to market
• Ensure sustained compliance with Create
global regulatory standards sustainable Cost
revenue streams leadership
Balance Business
profitability & development
investments
for future • Use acquisitions to bridge
critical capability gaps
• Focus on access to products,
• Increasing contribution of
technology, market presence
specialty and complex products
• Ensure acquisitions yield high
• Future investments directed
return on Investment
towards differentiated products
• Focus on payback timelines
© Sun Pharmaceutical Industries Limited. All Rights Reserved. 7Our Specialty Portfolio
• Indication - For plaque psoriasis
• Launched in US in October 2018
• Phased launch in Europe by Almirall starting December 2018 onwards
• Launched in Australia in December 2018
Ilumya/ • Long term clinical data shows that the significant response rate seen in 52 & 64
Ilumetri weeks were maintained over five years
• Evaluating new indications for Ilumya - Late-breaking phase 2 data shows potential
to improve joint & skin symptoms of Psoriatic Arthritis
• Out licensed to CMS for Greater China market in June 2019
• Launched in Japan in September 2020
• Indication - For dry eye disease
Cequa • Launched in US in October 2019
• Out-licensed to CMS for Greater China market in June 2019
• Indication - For the treatment of severe recalcitrant nodular acne
Absorica • Currently marketed in US
• Launched Absorica LD Capsules in the U.S. in Feb-2020
• Indication – In combination with BLU-U (Blue Light Photodynamic Therapy
Levulan Illuminator) for treatment of minimally to moderately thick actinic keratoses of the
Kerastick face, scalp, or upper extremities.
• Currently marketed in US for actinic keratosis
© Sun Pharmaceutical Industries Limited. All Rights Reserved. 8Our Specialty Portfolio
• Indication - For LABCC (locally advanced basal cell carcinoma)
Odomzo
• Currently marketed in US, Germany, France, Denmark, Switzerland, Australia and Israel
• Indication - For metastatic castration resistant prostate cancer in combination with
Yonsa methylprednisolone
• Launched in US in May 2018
• Indication - For prevention of ocular pain & treatment of inflammation following cataract
Bromsite surgery
• Launched in US in November 2016
• Indication - For reduction of elevated IOP in patients with open-angle glaucoma or ocular
hypertension
Xelpros • BAK (Benzalkonium chloride) free form of latanoprost
• Launched In US in January 2019
Infugem/ • Gemcitabine (chemotherapy product) in pre-mixed ready to use bags
• Launched in Europe in July 2016
InfuSMART • Launched in US in April 2019
© Sun Pharmaceutical Industries Limited. All Rights Reserved. 9Highly Diversified Revenue Base
Emerging Markets Western Europe &
17% Other Markets #
14%
API & Others
6%
FY20 Sales
India Branded Rs.323 billion
Formulations
30%
US Formulations
33%
# Includes Western Europe, Canada, Japan , Australia, New Zealand and other markets.
© Sun Pharmaceutical Industries Limited. All Rights Reserved. 10Impressive Track Record of Growth
(All Figures in INR Billion)
323.3 77.2 47.8
272.5 64.8 40.3
Adjusted
Sales EBITDA Net Profit
13.5
CAGR 13.6 CAGR CAGR
39.0 25% 4.0 17%
11.9 4.2 20%
FY05 FY10 FY15 FY20 FY05 FY10 FY15 FY20 FY05 FY10 FY15 FY20
65.6 50.1 19.9
56.2 16.7
32.7
Operating Free Cash Adjusted
Cash Flow Flow 5.6 EPS (Rs)
CAGR CAGR CAGR
7.8 5.0 1.7
3.8 21% 2.1 23% 17%
FY05 FY10 FY15 FY20 FY05 FY10 FY15 FY20 FY05 FY10 FY15 FY20
© Sun Pharmaceutical Industries Limited. All Rights Reserved. 11Consistent profitability and returns
Gross Margin # EBITDA Margin Net Margin (adjusted)
77% 23%
29%
73% 27% 19%
72% 73% 71%
20% 21% 20%
13% 14% 13%
FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20
ROCE ROE Market Cap (USD Bn)
20% 30
15% 16% 18%
25
18
9% 8% 9% 16
8% 9% 9%
12
FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20
# Gross margin= (Net Sales - Material Cost)/ Net Sales*100
ROCE & ROE exclude one-time exceptional charges (Market Cap as on 31st March )
© Sun Pharmaceutical Industries Limited. All Rights Reserved. 12Profitability
Gross Margin EBITDA Margin Net Margin
77%
73% 73%
72% 71%
29%
28%
66%
64% 64% 64%
63% 22%
20% 21% 20% 23%
18% 19%
17%
16% 14%
17% 12% 13%
14%
10% 9% 9%
9%
FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20
Gross margin= (Net Sales – Material Cost) / Net Sales * 100 Sun Pharma Range of Top 9 Indian Pharma Cos. Average
#Top 9 Indian Pharma company include Aurobindo, Cadila Healthcare,
Cipla, DRL, Glenmark, Ipca, Lupin, Torrent and Wockhardt.
© Sun Pharmaceutical Industries Limited. All Rights Reserved. 13Creating a Global Company
Agreement with
Merck for in- Acquired
Began with 5 Acquired Dusa Acquired InSite Acquired Pola
licensing Biosintez in Russia
products Vision ophthalmic Pharma in Japan
Tildrakizumab portfolio
Year 1983 1994 2010 2012 2013 2014 2015 2016 2018 2019 2020
• Entry into Japan -
Acquired 14 brands
Acquired from Novartis
IPO - Rs. 550 Mn Acquired URL Ranbaxy • Acquired Global rights
Acquired Taro Pharma for Cequa & Odomzo
raised
Sun Pharma Today
36,000+ Global Invested over Rs. 187 Bn Part of NSE Nifty & BSE 43 Manufacturing facilities 69% of sales from
Employee Base in R&D till date Sensex in India in 6 Continents international markets
© Sun Pharmaceutical Industries Limited. All Rights Reserved. 14Key Deals & Rationale
Year Deals Country Rationale
Middle
Exclusive licensing agreement with East & Registration and commercialization of the product in all Middle
2020
Himka for Ilumya North East & North Africa (MENA) markets.
Africa
Licensing agreement with SPARC for Potential treatment for atopic dermatitis, psoriasis and other
2020 Global
SCD-044 auto-immune disorders
In-licensed Triferic brand from Rockwell Expands nephrology portfolio in India - for treating anaemia in
2020 India
Medical Inc. (USA) hemodialysis patients.
Licensing agreement with Astrazeneca
Mainland
2019 UK for ready-to-use infusion oncology Access to oncology market in Mainland China
China
products
Licensing agreement with CMS for
Greater
2019 Tildrakizumab, Cequa & 8 generic Access to Greater China market
China
products
2018 Acquired Pola Pharma in Japan Japan Access to Japanese dermatology market.
Acquired global rights for Cequa &
2016 Global Enhances specialty pipeline.
Odomzo
Local manufacturing capability to enhance presence in Russian
2016 Acquired Biosintez Russia
market
Licensing agreement with Almirall for
2016 Europe Access to European market for Tidrakizumab
Tildrakizumab for Psoriasis
© Sun Pharmaceutical Industries Limited. All Rights Reserved. 15Key Deals & Rationale
Year Deals Country Rationale
2016 Acquired 14 brands from Novartis Japan Entry into Japan
Distribution services agreement in India for brand “Oxra” &
Distribution agreement with
2016 India “Oxramet”® (brands of dapagliflozin, used for diabetes
AstraZeneca
treatment)
Distribution services agreement in India for brand “Oxra” &
Distribution agreement with
2016 India “Oxramet”® (brands of dapagliflozin, used for diabetes
AstraZeneca
treatment)
2015 Acquired InSite Vision Inc. US Strengthens branded ophthalmic portfolio in U.S.
Distribution services agreement in India for brand “Axcer”®
Distribution agreement with
2015 India (brand of ticagrelor, used for the treatment of acute coronary
AstraZeneca
syndrome)
Strengthen position in the Global Generic Pharma Industry, No.1
Global
2015 Sun Pharma – Ranbaxy Merger Pharma Company in India & Strong positioning in Emerging
Markets
Markets
In-licensing agreement with Merck for Global
2014 Strengthening the specialty product pipeline
Tildrakizumab a biologic for psoriasis Markets
2014 Acquired Pharmalucence US Access to sterile injectable capacity in the US
Access to specialty drug-device combination in dermatology
2012 Acquired DUSA Pharma, Inc. US
segment
Acquired Taro Pharmaceutical Access to dermatology generic portfolio
2010 Israel
Industries Ltd. Manufacturing facilities at Israel & Canada
Detroit,
1997 Acquired Caraco Entry into US Market
US
© Sun Pharmaceutical Industries Limited. All Rights Reserved. 16Successful track record of turning around
acquisitions
ROCE 24% 25% 26% 27% 38% 37% 18% 34% 20% 24% 27% 15% 8% 8%
350
8 Early Acquisitions 4 Acquisitions Recent Acquisitions
300 Assets of: Taro
Bryan Dusa
Hungary URL
250 Ranbaxy
Able Labs
Chattem InSite Vision
200
150
100
50
-
FY94
FY95
FY96
FY97
FY98
FY99
FY00
FY01
FY02
FY03
FY04
FY05
FY06
FY07
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
FY18
FY19
FY20
Sales (Rs Bn) EBITDA (Rs Bn)
© Sun Pharmaceutical Industries Limited. All Rights Reserved. 17US Business
33% of Revenues
© Sun Pharmaceutical Industries Limited. All Rights Reserved. 18US Business at a glance
11th Largest Pharma Company in the US Generics Market *
Dermatology Segment • Ranked 2nd by prescriptions## in the US dermatology market
• Wide basket of 587 ANDAs & 63 NDAs filed and 497 ANDAs & 55
Comprehensive Portfolio NDAs approved across multiple therapies
Robust Pipeline • 90 ANDAs & 8 NDAs pending with FDA (as of Dec’20)
Market Presence • Presence in generics, branded & OTC segments
• Integrated manufacturer with flexibility for manufacturing
Flexible Manufacturing onshore/ offshore
• Liquids, Creams, Ointments, Gels, Sprays, Injectable, Tablets,
Dosage Forms Capsules, Drug-Device combination
* Source: IQVIA data for 12 months ended Dec 2020
## Source: IQVIA data for 12 months ended Jan 2021
© Sun Pharmaceutical Industries Limited. All Rights Reserved. 19US Business - Significant Ramp-up in Sales
Key Milestones in US
Sales in Rs billion FY98 •Entry in US through Caraco acquisition
10 year CAGR - 25%
•Acquired Taro Pharma – Entry into US
FY10
137 138 dermatology market
135
•Acquired DUSA - Entry in branded specialty
FY13
market
•Acquired InSite Vision – Strengthen
107 105 FY16 ophthalmic portfolio
98
•Tildrakizumab filing in US & Europe
87
•Acquired Ocular Technologies giving
access to Cequa, a product for dry eyes.
FY17
•Launched BromSite in US
•Acquired Odomzo- branded oncology
62
product from Novartis
•Launched Odomzo in US
FY18
•US FDA approval for Ilumya
35
23 •Launched Ilumya & Yonsa in US
•Received USFDA approval for Cequa
11 FY19
•Launched Xelpros in US
•Launched Ready-to-Infuse INFUGEMTM
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
FY18
FY19
FY20
•Launched Cequa in US
FY20
•Launched Absorica LD in US in Feb-2020
© Sun Pharmaceutical Industries Limited. All Rights Reserved. 20ANDA Pipeline
ANDAs Filed and Approved (Cumulative) ANDA Approvals by Therapeutic Area
128
572 584 581 587
561 571
110
483 497
453
413 427 422
66
48 51
31
19
15 14 15
CNS
CVS
Oncology
Metabolism
Others
Gastro
Skin
Pain
Allergy
Antibiotic
FY16 FY17 FY18 FY19 FY20 Q3FY21
Cumulative Products Filed Cumulative Products Approved
(As of Dec’20)
© Sun Pharmaceutical Industries Limited. All Rights Reserved. 21India Branded
Generic Business
30% of Revenues
© Sun Pharmaceutical Industries Limited. All Rights Reserved. 22India Business at a glance
No. 1 in India
Market Position** • No. 1 ranked with 8.2% market share
Prescription Ranking## • No. 1 ranked by prescriptions with 9 different classes of doctors
Chronic Segment • Market leader in the chronic segment
Acute Segment • Strong positioning in the acute segment
• Specializes in technically complex products and offers a complete
Product Offering therapy basket
Strong Brand Positioning** • 30 brands in the country’s top 300 pharmaceutical brands
• Top 10 Brands contribute approx. 19% of India revenues
De-risked Growth**
• Growth driven by a basket of brands – low product concentration
Extensive Sales Force • 10,900+ strong field force
** - As per AIOCD AWACS data for 12 months ended Dec’20
## - As per SMSRC data for Oct’20
© Sun Pharmaceutical Industries Limited. All Rights Reserved. 23Largest Pharma Company in India
Market Share Branded Generic Sales in India as of 12 Months ended Dec 2020 (US$ in mn)
1,598
Sun Pharma 8.2%
1,242
Abbott + Abbott HC + Novo 6.3%
967
Cipla 4.9%
836
Mankind 4.3%
827
Zydus + Biochem 4.2%
749
Lupin 3.8%
676
Alkem + Cachet + Indchemie 3.4%
613
Torrent 3.1%
590
Intas 3.0%
569
Dr. Reddys 2.9%
564
Macleods 2.9%
527
Aristo 2.7%
Source: AIOCD AWACS MAT Dec 2020 data converted at average of Rs. 74.11/US$
© Sun Pharmaceutical Industries Limited. All Rights Reserved. 24India Business – Sales ramp-up
Leadership in chronic segment; Strong positioning in acute segment
30 brands in top 300 brands of country
Sales in Rs Billion
Therapeutic Revenue Break-up
10 year CAGR -19%
Others
Opthalmology 2% 4% Cardiology
Urology 3% 18%
97 Gynaecology, 4%
Impact of
Ranbaxy Respiratory 4%
Acquisition Vitamins /
80
77 Minerals /
71 73 Nutrients, 4%
67
Dermatology, 6% Market Share Neuro-Psychiatry
8.2% 18%
Pain / Analgesics
7%
37
29 30
24 Anti-Infectives,
17 9%
Gastroenterology
Diabetology 12%
10%
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
FY18
FY19
FY20
• As per AIOCD AWACS – Dec‘20
© Sun Pharmaceutical Industries Limited. All Rights Reserved. 25Leadership in key therapeutic areas*
Number 1 Ranking with 9 Doctor Categories*
Prescription Ranking
Specialist Oct ‘16 Oct ‘17 Oct ’18 Oct ‘19 Oct ‘20
Psychiatrists 1 1 1 1 1
Neurologists 1 1 1 1 1
Cardiologists 1 1 1 1 1
Orthopaedic 1 1 1 1 1
Gastroenterologists 1 1 1 1 1
Diabetologists 1 1 1 1 1
Dermatologists 1 1 1 1 1
Urologists 1 1 1 1 1
Consulting Physicians 1 1 2 1 1
Nephrologists 1 1 1 1 2
Ophthalmologists 2 1 1 2 2
Oncologists 1 2 2 2 2
Chest Physicians 2 2 3 2 2
*Ranks based on prescription share
Source-Strategic Marketing Solutions and Research Centre (SMSRC) Prescription Data
26
Creating Lasting Value - Investor PresentationBest-in-class field force productivity
Sales Per Medical Representative (Rs. Mn)
• Well trained and scientifically
Impact of
11.0
Ranbaxy
oriented sales representatives
Acquisition 10.0 team with strong performance
track record
8.6 8.8
8.3
7.8
7.4 • Field force with highest
productivity amongst key players
in India
• Recently expanded the sales
force strength to enhance
geographical & doctor reach and
improve brand focus
FY14 FY15 FY16 FY17 FY18 FY19 FY20
Sales Per Representative (Rs. Mn)
© Sun Pharmaceutical Industries Limited. All Rights Reserved. 27Emerging Markets
17% of Revenues
© Sun Pharmaceutical Industries Limited. All Rights Reserved. 28Emerging Markets Business at a glance
Largest Indian Company in Emerging Markets
Global footprint • Presence in about 80 markets
• Romania, Russia, South Africa, Brazil, Mexico and complementary
Focus Markets & affiliated markets
Product Portfolio • Extensive basket of branded products
Customer Focus • Strong relationships with doctors and medical practitioners
Sales Force • Approximately 2,300 Sales Representatives
• To cross-sell products between Sun Pharma and Ranbaxy
Opportunity marketing infrastructure
Local Manufacturing • Across 7 countries
© Sun Pharmaceutical Industries Limited. All Rights Reserved. 29Western Europe, Canada, Japan, ANZ & Other
Markets
14% of Revenues
© Sun Pharmaceutical Industries Limited. All Rights Reserved. 30Western Europe & Other Markets at a glance
Amongst the leading Indian Companies
• Across all major markets in Western Europe, Canada, A&NZ, Japan
Market Presence and few other markets
• Expanding basket of products including injectables and hospital
Product Portfolio products as well as products for retail market
• Development and commercialization of complex generics and
Focus differentiated products to drive sustainable and profitable growth
Sales Force • Distribution led model
• At Canada, Japan, Australia, Israel and Hungary + Servicing from
Local Manufacturing India facilities
• Acquired 14 established prescription brands from Novartis in
Japan Presence March’16.
• Acquired Pola Pharma in Japan in Jan‘19
© Sun Pharmaceutical Industries Limited. All Rights Reserved. 31Global Consumer Healthcare Business © Sun Pharmaceutical Industries Limited. All Rights Reserved. 32
Global Consumer Healthcare Business
at a glance
An Attractive Opportunity
India • Amongst the top 10 consumer healthcare companies
Global Presence • Operates in about 20+ countries
• Romania, Russia, South Africa, Nigeria, Myanmar, Ukraine, Poland,
Focus Markets Thailand, Belarus, Kazakhstan, Morocco, UAE and Oman
Strong Brand Equity • Enjoy strong brand equity in 4 countries
Sales Force • Promoted through dedicated sales force in each market
• Amongst top 10 consumer healthcare companies in India,
Strong Positioning Romania, Nigeria & Myanmar
© Sun Pharmaceutical Industries Limited. All Rights Reserved. 33Active Pharmaceutical
Ingredients (API) Business
6% of Revenues
© Sun Pharmaceutical Industries Limited. All Rights Reserved. 34API Business
Backward Integration – Strategic Importance
• Backward integration provides cost competitiveness and supply
Strategic Importance reliability
Customers • Large generic and innovator companies
Product Portfolio • Approximately 300 APIs
Pipeline Development • Approx. 20 APIs scaled up annually
• 329 DMF/CEP approvals to date
Regulatory approvals
• 443 DMF/CEP Filings to date
Manufacturing • Across 14 facilities
© Sun Pharmaceutical Industries Limited. All Rights Reserved. 35Research & Development © Sun Pharmaceutical Industries Limited. All Rights Reserved. 36
Research & Development
Cumulative R&D Spend of over Rs 187 billion to date
• R&D spend at 6.1% of sales for FY20
R&D Spend
• Strong cash flows & large scale to support R&D investments
• Strong research teams in generics, finished dosage development,
Capabilities biological support, chemistry
• Approx. 2,500 headcount globally with capabilities across dosage
Organization forms like orals, liquids, ointments, gels, sprays, injectables
IPR Support • Strong team of intellectual property experts supporting R&D
• Developing non infringing formulations and development of
Focus specialty/complex products
© Sun Pharmaceutical Industries Limited. All Rights Reserved. 37R&D Investments
R&D Investments Filings and Approvals
6.5% 7.2% 8.3% 7.6% 8.6% 6.9% 6.1% ANDA NDA/BLA DMF/CEP Patents
23.0 23.1
22.5 63 1568
587 443
19.6 19.8 19.7
497 55 1278
329
10.4
FY14 FY15 FY16 FY17 FY18 FY19 FY20 Filed Approved Filed Approved Filed Approved Filed Granted
R&D Investments (Rs Bn) R&D Investments (% of Sales)
As of Dec 31, 2020
© Sun Pharmaceutical Industries Limited. All Rights Reserved. 38Global Manufacturing Presence © Sun Pharmaceutical Industries Limited. All Rights Reserved. 39
Global Manufacturing Presence
World Class Manufacturing Infrastructure
• 43 manufacturing facilities across India, the Americas, Asia, Africa,
Extensive Global Footprint Australia and Europe
• Vertically integrated network across six continents enabling high
Integrated Network quality, low cost and a quick market entry across the geographies
• One of the few companies that has set up integrated
Capabilities manufacturing capability for the production of oncology,
hormones, peptides, controlled substances and steroidal drugs
• High quality manufacturing facilities. Many facilities approved by
High Quality US FDA, UK MHRA and other international regulatory authorities
• Ability to manufacture a variety of dosage forms – Orals, Creams,
Dosage Forms Ointments, Injectables, Sprays, Liquids
© Sun Pharmaceutical Industries Limited. All Rights Reserved. 40Finished Dosage Manufacturing
29 Finished dosage manufacturing sites
• India : 14, US : 3, Japan : 2
• Canada, Hungary , Israel, Bangladesh, South Africa, Malaysia, Romania, Egypt, Nigeria
and Russia : 1 each
• Capacities available for a variety of finished dosages
Orals Injectables / Sterile Topicals
Tablets / Capsules Vials Dry powder Creams
Semisolids Ampoules Eye drops Ointments
Liquids Pre-filled Syringes MDI
Suppository Gels Aerosols
Lyophilized Units
41
© Sun Pharmaceutical Industries Limited. All Rights Reserved.API Manufacturing
14 API manufacturing locations
• India : 9, Australia : 2, Israel : 1, US : 1, Hungary : 1
Panoli & Ahmednagar Australia, Hungary &
(both India) Tennessee (US)
• International regulatory
approvals: USFDA, API • Controlled substances
European Key Plants manufacture
• Stand alone units for
peptides, anti-cancer,
steroids, sex hormones
42
© Sun Pharmaceutical Industries Limited. All Rights Reserved.Corporate Governance
Our philosophy on corporate governance envisages
working towards high levels of transparency,
accountability and consistent value systems across
all facets of operations
Chairman
Israel Makov
Former President & CEO of
Teva Pharma. Industries Ltd.
Independent Director Independent Director Independent Director
Rekha Sethi Vivek C. Sehgal Gautam B. Doshi
Director General Chairman, Samvardhana Professional with expertise
All India Management Motherson Group & in M&A, Taxation, Accounting
Association (AIMA) Motherson Sumi Systems & Corporate and Commercial
Ltd. Laws.
.
© Sun Pharmaceutical Industries Limited. All Rights Reserved. 43Financials © Sun Pharmaceutical Industries Limited. All Rights Reserved. 44
Financials
Market Capitalisation Rs. 1,520 billion / US$ 21 billion (as of 08th Feb 2021) ( All Figures in Rs. Mn )
FY16 YoY FY17 YoY FY18 YoY FY19 ** YoY FY20 YoY
P&L Summary
Sales 2,78,881 2% 3,02,642 9% 2,60,659 -14% 2,86,863 10% 3,23,252 13%
Gross Profit 2,15,577 5% 2,21,335 3% 1,86,413 -16% 2,08,173 12% 2,30,947 11%
EBITDA 75,594 -2% 87,751 16% 51,846 -41% 59,280 14% 64,774 9%
Net Profit 45,457 0% 69,644 53% 20,957 -70% 26,654 27% 37,649 41%
# #
Net Profit (Adjusted) 52,309 # 9% 69,644 33% 33,006 -53% 38,798 # 18% 40,256 4%
R&D Spend 23,025 18% 23,138 0% 22,489 -3% 19,847 -12% 19,739 -1%
BS Summary Mar'16 YoY Mar'17 YoY Mar'18 YoY Mar'19 YoY Mar'20 YoY
Shareholders Funds 3,29,825 18% 3,66,397 11% 3,83,141 5% 4,14,091 8% 4,52,645 9%
Loan Funds 83,164 10% 80,910 -3% 97,518 21% 98,934 1% 75,783 -23%
Net Fixed Assets 1,24,130 28% 1,49,404 20% 1,57,110 5% 1,72,919 10% 1,75,858 2%
Investments 18,298 -48% 11,919 -35% 71,430 499% 79,030 11% 1,01,431 28%
Cash and Bank Balances 1,31,817 20% 1,51,408 15% 99,290 -34% 72,760 -27% 64,876 -11%
Inventory 64,225 13% 68,328 6% 68,810 1% 78,860 15% 78,750 0%
Sundry Debtors 67,757 33% 72,026 6% 78,150 9% 88,840 14% 94,212 6%
Sundry Creditors 35,830 10% 43,954 23% 47,660 8% 41,480 -13% 40,937 -1%
#
FY16 -Adjusted for Rs 6.9 bn of exceptional items related to Ranbaxy integration
FY18 -Adjusted for Rs 12.1 bn provision related to Modafinil settlement & deferred tax adjustment
FY19 -Adjusted for Rs 12 bn provision related to Modafinil settlement
FY20 –Adjusted for Rs 2.6 bn provision (related to Dusa US DoJ settlement of Rs. 1.6 bn and Indirect Tax provision of Rs. 1.0 bn in India)
**FY19 – Includes a one-time sales reduction of Rs 10,850mn related to change in distribution for India business
© Sun Pharmaceutical Industries Limited. All Rights Reserved. 45Sales Break-up
In INR Billion In USD Million
Sales 261 287 323 4,044 4,101 4,559
20 289
18 45 229 264 638
15 35 461 494
30 55 776
54 751 767
48
105 1487
1357
87 107 1526
97 1246 1369
80 73 1051
FY18 FY19 FY20 FY18 FY19 FY20
India Formulations US Formulations #Exchange Rate : US$1 = Rs 64.46 (for FY18)
US$1 = Rs 69.95 (for FY19)
Emerging Markets Rest of World
US$1 = Rs 70.91 (for FY20)
API+Others
© Sun Pharmaceutical Industries Limited. All Rights Reserved. 46EBITDA Trend
In INR Billion
Sales 279 303 261 287 323
% of Sales
23%
27% 28% 27% 29%
17%
16%
21% 21% 20%
33% 28%
31% 31% 32%
27% 29%
20% 21% 20%
FY16 FY17 FY18 FY19 FY20
EBITDA Other Expenditure Personnel Costs Material Costs
© Sun Pharmaceutical Industries Limited. All Rights Reserved. 47Cash Flow
Net Cash From Operating Activities (Rs Bn) Free Cash Flow (Rs Bn)
71
67 66 50
56
33 33 34
39
20
22
FY15 FY16 FY17 FY18 FY19 FY20 FY15 FY16 FY17 FY18 FY19 FY20
(10)
© Sun Pharmaceutical Industries Limited. All Rights Reserved. 48Financial Ratios
FY16 FY17 FY18 FY19 ** FY20
Growth (%)
Sales 2.4 8.5 (13.9) 10.1 12.7
Gross Profit 5.1 2.7 (15.8) 11.7 10.9
EBITDA (2.1) 16.1 (40.9) 14.3 9.3
Net Profit 0.1 53.2 (69.9) 27.2 41.3
#
Net Profit (Adjusted) 9.5 # 33.1 (52.6) # 17.5 # 3.8
Margins (%)
Gross Margin 77.3 73.1 71.5 72.6 71.4
EBITDA Margin (%) 27.1 29.0 19.9 20.7 20.0
Net Margin 16.3 23.0 8.0 9.3 11.6
Net Margin (Adjusted) 18.8 # 23.0 12.7 # 13.5 # 12.5 #
Return (%)
ROCE 14.6 16.1 7.8 8.5 8.3
ROE 17.6 19.8 8.7 9.4 9.1
Others
Debt / Equity 0.25 0.22 0.25 0.24 0.17
Fully Diluted EPS 18.9 28.9 8.7 11.1 15.7
#
Fully Diluted EPS (Adjusted) 21.7 28.9 13.8 # 16.2 # 16.8 #
R&D Spend % of Net Sales 8.3 7.6 8.6 6.9 6.1
Revenue 8.0 7.1 7.9 6.6 6.0
Capital 0.3 0.6 0.7 0.3 0.1
#
FY16 -Adjusted for Rs 6.9 bn of exceptional items related to Ranbaxy integration
FY18 -Adjusted for Rs 12.1 bn provision related to Modafinil settlement & deferred tax adjustment
FY19 -Adjusted for Rs 12 bn provision related to Modafinil settlement
FY20 –Adjusted for Rs 2.6 bn provision (related to Dusa US DoJ settlement of Rs. 1.6 bn and Indirect Tax provision of Rs. 1.0 bn in India)
**FY19 – Includes a one-time sales reduction of Rs 10,850mn related to change in distribution for India business
© Sun Pharmaceutical Industries Limited. All Rights Reserved. 49Key Financials Q3 & 9m FY21
( All Figures in Rs. Mn )
Q3 FY21 Q3 FY20 CHANGE 9m FY21 9m FY20 CHANGE
Gross Sales 87,818 80,387 9.2% 2,47,078 2,42,471 1.9%
Gross Profit 64,485 58,387 10.4% 1,82,585 1,73,215 5.4%
Gross Margin 73.4% 72.6% 73.9% 71.4%
EBITDA 23,512 17,252 36.3% 61,756 52,213 18.3%
EBITDA Margin 26.8% 21.5% 25.0% 21.5%
Net Profit 18,525 9,135 102.8% 20,097 33,651 -40.3%
Net margin 21.1% 11.4% 8.1% 13.9%
Net Profit (Adjusted) 18,525 9,135 102.8% 45,887 # 33,651 36.4%
Net margin (Adjusted) 21.1% 11.4% 18.6% 13.9%
R&D 5,595 5,271 6.1% 15,928 14,376 10.8%
R&D as % of Net Sales 6.4% 6.6% 6.4% 5.9%
EPS (Diluted) INR 7.7 3.8 102.8% 8.4 14.0 -40.3%
EPS (Diluted) INR (Adjusted) 7.7 3.8 102.8% 19.1 # 14.0 36.4%
# For 9m FY21 adjusted net profit excludes for Rs 36.3 bn provision related to Taro US DoJ settlement & Rs 2.9 bn related to deferred tax gain.
© Sun Pharmaceutical Industries Limited. All Rights Reserved. 50Sales Breakup Q3 & 9m FY21
( All Figures in Rs. Mn )
Q3 FY21 Q3 FY20 CHANGE 9m FY21 9m FY20 CHANGE
Formulation
India 27,528 25,170 9% 76,724 73,454 4%
US 27,609 24,924 11% 73,893 78,296 -6%
Emerging Markets 15,071 13,901 8% 43,819 41,504 6%
ROW 12,758 11,035 16% 36,278 33,997 7%
Sub-total 82,966 75,031 11% 2,30,713 2,27,252 2%
Bulk 4,505 5,032 -10% 15,147 14,325 6%
Others 348 324 7% 1,218 895 36%
Gross Sales 87,818 80,387 9% 2,47,078 2,42,471 2%
US Formulations 17%
31% 17% 31%
India Branded Generics Q3
Q3
FY20 14%
Emerging Markets FY21 15%
6% 7%
Rest of World # 31%
31%
API & Others # Includes Western Europe, Canada, Japan, Australia, New Zealand and other markets
© Sun Pharmaceutical Industries Limited. All Rights Reserved. 51Key Milestones targeted for future
• Enhance share of specialty/branded business
US
• Continue to focus on complex generics and high entry barrier segments
Business
• Ensure broad product offering to customers across multiple dosage forms
• Focus on productivity enhancement
India • Maintain leadership position in a fiercely competitive market
Business • Continuously innovate to ensure high brand equity with doctors
• Continue to evaluate in-licensing opportunities for latest generation patented products
EM & • Gain critical mass in key markets
RoW • Enhance product basket in emerging markets
Business • Focus on profitable growth
© Sun Pharmaceutical Industries Limited. All Rights Reserved. 52Key Milestones targeted for future
Global
Consumer • Maintain leadership in existing markets through focus on innovative solutions
• Enhance presence in high growth markets
Healthcare
• Focus on developing complex products across multiple dosage forms
R&D
• Invest to further build the specialty pipeline
• Ensuring 24x7 compliance to cGMP is imperative for a global business
Regulatory/
• Continuously enhance systems, processes, human capabilities to ensure compliance
Quality with global regulatory standards
• Target sustainable and profitable growth
Financial
• Focus on improving ROCE
© Sun Pharmaceutical Industries Limited. All Rights Reserved. 53Sun Pharma at a glance
4th Largest Global Specialty Generic Company*
US • Ranked 11th in US Generics Market##
India • No. 1 Pharma Company in India
• Amongst the largest Indian Pharma Company in Emerging
Emerging Markets Markets
Rest of World • Expanding presence in Rest of World
Manufacturing Footprint • 43 manufacturing sites across the world
• Presence in more than 100 countries across branded and generic
Market Presence markets
Employees • 36,000+ global employee base
• Multiple manufacturing facilities approved by various regulatory
Quality Compliance authorities across the world including USFDA
• Capabilities across dosage forms like injectables, sprays,
R&D and Manufacturing ointments, creams, liquids, tablets and capsules
• Specialty products, branded generics, complex generics, pure
Addressable Segments generics & APIs
*Source: Evaluate Pharma Estimates for 12 months ended Dec 2019
## Source: IQVIA data for 12 months ended Dec 2020
© Sun Pharmaceutical Industries Limited. All Rights Reserved. 54Thank You!
For more information please contact:
Investors:
Nimish Desai
Thank You
Tel : +91 22 4324 4324, Ext 2778
Tel Direct +91 22 43242778
nimish.desai@sunpharma.com
Corporate Address:
SUN HOUSE, CTS No. 201 B/1, Western Express Highway, Goregaon (E), Mumbai 400063
© 2017 Sun Pharmaceutical Industries Limited., All Rights Reserved.
“SUN Pharma”, The Sun Pharmaceutical Industries Logo are trademarks of Sun Pharmaceutical Industries Limited.
This material was used during an oral presentation; it is not a complete record of the discussion. This work may
not be used, sold, transferred, adapted, abridged, copied or reproduced in whole on or in part in any manner or
form or in any media without the prior written consent. All product names and company names and logos
mentioned herein are the trademarks or registered trademarks of their respective owners.
NSE:SUNPHARMA, BSE: 524715, Reuters: SUN.BO, Bloomberg: SUNP IN
CIN: L24230GJ1993PLC019050
www.sunpharma.com
© Sun Pharmaceutical Industries Limited. All Rights Reserved. 55You can also read
