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Marksans pharma limited investor presentation february 2008

Marksans Pharma LimitedInvestor PresentationFebruary 2008


Disclaimer

Disclaimer

  • Materials and information provided during this presentation may contain ‘forward-looking statements’. These statements are based on current expectations, forecasts and assumptions that are subject to risks and uncertainties which could cause actual outcomes and results to differ materially from these statements.

  • Risks and uncertainties include general industry and market conditions, and general domestic and international economic conditions such as interest rate and currency exchange fluctuations. Risks and uncertainties particularly apply with respect to product-related forward-looking statements. Product risks and uncertainties include, but are not limited, to technological advances and patents attained by competitors, challenges inherent in new product development, including completion of clinical trials; claims and concerns about product safety and efficacy; obtaining regulatory approvals; domestic and foreign healthcare reforms; trends toward managed care and healthcare cost containment, and governmental laws and regulations affecting domestic and foreign operations.

  • Also, for products that are approved, there are manufacturing and marketing risks and uncertainties, which include, but are not limited, to inability to build production capacity to meet demand, unavailability of raw materials, and failure to gain market acceptance.

  • The Company undertakes no obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.


Contents

Contents

Section 1 Highlights

Section 2 Industry Overview

Section 3 Company Overview

Section 4 Strategy

Section 5 Financial Highlights


Highlights

Highlights

  • Mumbai based vertically integrated player with strong presence across the entire value chain - APIs to formulations to biopharmaceuticals

  • Incorporated in 2001 as a wholly owned subsidiary of Glenmark Pharmaceuticals Ltd. and later spun-off into a separate entity in March 2003

  • Straddles across key therapy areas and markets its products in both evolving and developed markets

  • Actively engaged in R&D and offers CRAMS to global pharmaceutical companies

  • Operates world class manufacturing facilities for API and Formulations, built per US FDA guidelines and approved by UK MHRA, Australia TGA and Brazilian ANVISA health authorities

  • Reported sales of USD 63.4 million and net profit of USD 1.75 million in FY2007


Marksans pharma limited investor presentation february 2008

INDUSTRY OVERVIEW


The global pharmaceutical market

The Global Pharmaceutical Market

  • Worldwide pharmaceutical market expected to grow at 5-6% to USD 665-685 billion in 2007

  • Moderate growth in the US and EU markets

  • Asia and Latin America are growth drivers

  • Expiry of patent protection driving Generics market – In 2008, products with sale value of more than USD 20 billion are likely to lose patent protection

Leading Therapy Classes by Global Sales, 2006

Source: IMS Health


Indian pharmaceutical market

Indian Pharmaceutical Market

  • India is one of the fastest growing large pharmaceuticals market

  • India is also the world’s fourth largest producers of pharmaceuticals by volumes

  • Competitive Advantage:

    • Upfront capital cost lower by 25-30%

    • Clinical trials cost 50% less

    • Drug production cost lower by 40-50%

  • Contract Research & Contract Manufacturing (CRAMS)

    • India has emerged as a key destination for CRAMS

    • Global manufacturing outsourcing opportunity is estimated at USD 20 billion

  • Formulations constitute about 78% of total sales. 32% of formulation sales are exports

Projected Indian Pharmaceutical Market, 2007-2012 (USD Billion)

Source: Espicom

India Pharmaceuticals Market 2007

Source: www.indiahealth.com


Marksans pharma limited investor presentation february 2008

COMPANY OVERVIEW


Marksans pharma limited

Marksans Pharma Limited

  • Marksans Pharma Limited is a niche Formulations, Bulk drugs and Biopharmaceutical player with presence across the entire value chain

  • Incorporated in 2001 as a wholly owned subsidiary of Glenmark Pharmaceuticals Ltd. and later spun-off into a separate entity in March 2003

  • The Company straddles across key therapy areas and actively engages in R&D and offers CRAMS to global pharmaceutical companies

  • The Company is listed on The Bombay Stock Exchange and the National Stock Exchange of India Limited with a market capitalisation of Rs 9.24 billion (USD 234 million) as of 8 February 2008

  • The Company has an employee strength of 1296 out of which more than 100 are engaged in R&D

  • Reported sales of Rs 2,399 million (USD 60.7 million) and net profit of Rs 69.3 million (USD 1.75 million) in FY2007


Business overview

Business Overview

API

Manufacturing

  • DOMESTIC MARKET

  • Niche Focus

  • Large Product portfolio

  • NDDS, NCE

  • In-licensing

FORMULATIONS

Pharmaceuticals + Biologics

BIOLOGICS

Marketing

A Complete R&D Player

EXPORT MARKET

Supply tie-ups

Joint marketing

CRAMS

Out-licensing

ANDA Filings And

Dossier Development

Clinical Trials

Formulation

Development & NDDS

DMF/COS Filings and

Dossier Development

Custom Chemical

Synthesis

Drug Discovery &

Development Services


Business segments

Business Segments

Revenues (Rs millions)

FORMULATION

  • Significant presence in major therapeutic areas in the domestic market with over 250 products

  • Strong marketing capabilities with 450 representatives across India

  • Foreign markets: US, EU, UK, Australia, and other emerging markets. Plans in place to tap huge Russian and CIS markets

  • Collaborations: MPL’s products are available through collaborations with big MNC companies

  • ANDA filings: List of proprietary products identified which are to be developed post patent expiry - Is filing 10 ANDAs with US FDA by June 2008

  • Combination of organic and inorganic growth

    ACTIVE PHARMACEUTICAL INGREDIENT

  • Second largest producers of Ciprofloxacin and Ranitidine in India

Revenues (Rs millions)

  • Provides contract manufacturing services to world’s leading generic pharmaceutical companies

  • Key Focus Area: CVS, Ant diabetic, CNS, Pain management& Gastro Intestinal

  • Expanding production in CNS, CVS, anti-diabetic and pain management therapeutic segments

  • Capacity expansion already underway to meet domestic demand


Business segments1

Business Segments

RESEARCH AND DEVELOPMENT

  • State of the art R&D laboratory at Goa (approved by DSIR) and New Delhi for innovation in the area of new molecule and formulation development and drug delivery

  • New research laboratory set up at Kurkumbh to provide chemical synthesis and development services

  • The company is also working towards developing API's which are likely to go off patent in the next few years as their market size is estimated at USD 20 billion

  • Joint product development pacts in place with reputed international and local institutions for biopharmaceuticals

GENERIC DRUG DEVELOPMENT PIPELINE

  • Filing 10 ANDA’s with USFDA by June 2008, having aggregate market size of 17 billion in US, into CVS, CNS, Pain management & Gastro Intestinal Segments


Manufacturing capabilities

Manufacturing Capabilities

FORMULATION

  • Marksans state of the art manufacturing facilities in Goa are of international standards adhering to stringent quality norms and are USFDA compliant. Its world class manufacturing capabilities cater to APIs as well as formulations.

  • Adhering to USFDA guidelines with approvals from UK MHRA, Australian TGA and Brazilian ANVISA health authorities

  • One of the biggest manufacturing facility for soft gelatin capsules and tablets in Asia (Capacity of 2.50 billion tablets/line/annum for tablets, 4.8 billion capsules / line / annum) respectively

    ACTIVE PHARMACEUTICAL INGREDIENT

  • Marksans has two large multi-product API manufacturing facilities located at Kurkumbh, Maharashtra which are re-benchmarked to CGMP standards

  • USFDA approval expected in next 9-12 months

  • MPL has increased the annual capacity of its flagship product Ciprofloxacin from 600 MT to 1000 MT and for Ranitidine from 360 MT to 600 MT


Recent acquisitions

Recent Acquisitions

HALE GROUP - UK

  • The Company has entered into a share purchase agreement with UK's Hale Group to acquire its entire share capital, along with its subsidiary company Bell Sons & Co (“Bell”)

  • Bell is a well-established manufacturer of a broad range of OTC pharmaceuticals having full approval of the UK MHRA and currently holds 38 product licenses. Licensed products contribute over 45% of Bell’s total turnover

  • The company clocked a turnover of £ 8.03 million and £ 8.94 million respectively for FY’05 and FY’06 (year ending December). The EBITDA margins for the said period stand at 12% and 14% respectively

  • Rationale: Bell is an established player with strong goodwill

    Access to the regulated UK & Europe market

    Synergies and cost saving in manufacturing and R&D

    NOVA PHARMACEUTICALS - AUSTRALIA

  • MPL acquires Nova Pharmaceuticals (NP), a company that specializes in R&D and marketing of generics

  • NP has a basket 14 products, with additional 25 products filed for TGA approvals

  • NP has presence in the top pharmacies and major chain stores for the supply of generics and OTC

  • Rationale: Gain foothold in a key pharmaceutical market

    New product introduction and cost saving by shifting production to India


Marksans pharma limited investor presentation february 2008

STRATEGY


Marksans pharma limited investor presentation february 2008

Vision

Strategy aimed at differentiation, high margin niche areas, life cycle extension and product innovation

Multi-product, multi-specialty, multi-geography, fully integrated enterprise

Global strategy – global alliances, innovator partnerships

collaborative R&D, licensing deals, M&A

Business expansion – CRAMS

Innovation & Value Chain Traversal

Product Innovation – reformulation,

Controlled release

Vertical Integration

Therapeutic area expansion – critical care, respiratory,

CNS, anti-infectives, immunology, life style, neutraceuticals

Product expansion – NCEs, biologics, controlled /high potency substances

Geographic expansion – Semi and Regulated Markets

Niche Player

Integrated Player

Enterprise Maturation

Current State

Future State


Marksans pharma limited investor presentation february 2008

Geographical Strategic Goals

  • Europe, US & Emerging Markets

    • Become preferred manufacturing partner for large MNC pharma companies

    • Establish a strong presence in the US generic pharmaceutical market through acquisition of a target company to exploit MPL’s low cost API, drug formulation and R&D capabilities

    • Focus on building IP assets specially in Niche dosage forms

    • Out-License IP to drive growth / scalability

    • Build and launch portfolios of generic products in niche segments, technology driven products. In parallel, seek out newer markets with potential

    • Build significant OTC presence in regulated markets

    • Integrating & leveraging acquired company strengths to fuel internal growth

  • India

    • Become a top 10 fully integrated pharmaceutical company with a diverse portfolio of ethical, branded, generic and OTC products

    • Continue building presence in speciality markets such as oncology and CNS

    • Continue evolution as an innovative developer of patented, NDDS, and in-licensed products (RISUG, GCSF, EGF) and post-patent products


Marksans pharma limited investor presentation february 2008

Key Growth Drivers

Rapid filing of ANDAs / MAs, DMFs/COSs into US, Europe & Emerging Markets

Expand CRAMS services in the Regulated Markets

Acquisitions of growing, profitable pharmaceutical companies and/or products.

Commercialize strong pipeline of over 10 new API products

Leverage economies of scale and integrating API and formulation manufacturing

Pursue additional product in-licensing opportunities for domestic markets

Enter into out licensing arrangements with big pharma company in US, Europe to manufacture & market post patent & off patent drugs


Strategy

Strategy

THRUST ON

EXPORTS

DOMESTIC

FORMULATIONS

CRAMS

BIO

PHARMACEUTICALS

R&D – NCE

PIPELINE


Thrust on exports

Thrust on Exports

  • VISION: To become a leading player for APIs and formulations supply to global companies

  • COMPETITIVE EDGE: Vertical integration from R&D to API to formulations

  • NORTH AMERICA: Aggressive roadmap to develop sales and distribution network

    Remain focused on high value of generics

    Organic and inorganic buildup of portfolio

  • EUROPE: Tie-ups in place with top 7-8 generic formulations companies for CRAMS

    Focus on selected market – UK, Germany, Central and East EU

    UK Acquisition: £8-10m sales with strong product pipeline and brand equity

  • AUSTRALIA: Acquired a marketing company with basket of 14 products, with additional 25 products filed for TGA approvals

  • EMERGING MARKETS: Expanding to countries and across products


Domestic formulations

Domestic Formulations

CURRENT STATUS AND STRATEGY

  • Mark Remedies caters to the GI disorders and Respiratory infections segment. This is a mass segment category with promises of large volumes

  • Enhance presence in Oncology and creating a base in lifestyle therapeutic segments

  • Focus on Biotechnology drugs, antineoplastics and immunomodulators

  • In-licensing to be one of the major growth drivers


Biopharmaceuticals

Biopharmaceuticals

CURRENT STATUS

  • Number of in-licensing / joint R&D agreements in place with international agencies and local research institutes for product development and / or marketing

  • Some of the products approved / under development

    • Interferon Alpha 2b: world market ~ USD 1 billion

    • Granulocyte Colony Stimulating Factor (GCSF): World market ~ USD 2 billion

    • Epidermal Growth Factor (EGF) - NDDS

    • Interlucin 2

      STRATEGY

  • Aggressively scouting for more in licensing opportunities with the innovator companies

  • Increase the marketing infrastructure on PAN India basis to market the products


Research development

Research & Development

  • ~ 45 products already developed. > 40 products under development

  • Building IP assets and registering them internationally

  • Focus on end to end solutions, to develop core API’s for ANDA products in-house.

  • Concentrating on development of Niche Liquid gel products

  • Leveraging expiry of patents: developing products for growth areas such as cardiovascular and anti diabetics

  • Tie ups in place with big MNC & Generic companies for first to launch status on many products following patent expiration

  • Joint product development pacts in place with reputed international and local institutions for biopharmaceuticals

MPL is already working on two NCEs in collaboration with Original patent holders, along with Indian Council of Medical Research, Govt. of India


Crams

CRAMS

CURRENT STATUS

  • The Company has alliances with the top 7-8 MNC generic companies for contract manufacturing of ~ 30 generic products for the European markets

  • Licensing agreements in place with numerous companies for development and supply of products for 7-10 years

    STRATEGY

  • The company plans to enhance its product portfolio with the addition of 12-13 products p.a.

  • Offering CRAMS services for existing and emerging markets is envisaged as one of the major driver and revenue earner for the company


Marksans pharma limited investor presentation february 2008

FINANCIAL HIGHLIGHTS


Financial highlights

Financial Highlights

PROFIT AND LOSS

USDINR 39.5


Financial highlights1

Financial Highlights

BALANCE SHEET

USDINR 39.5


Background for fy2007 results

Background for FY2007 Results

KEY REASONS

  • Stiff competition in APIs namely Ciprofloxacin and Ranitidine due to dumping from China

  • Price erosion ~ 35%

  • Reduced production in these APIs resulted in decrease in sales

    STRATEGY ADOPTED

  • COS approval obtained for Ciprofloxacin, expected for Ranitidine & Metformin shortly to enable exports to Europe with 50% more margin

  • More high value products like Losartan, Metformin, Naproxen, etc with COS Filings

  • US FDA approval expected for all these products

  • Focus on high growth life style segment formulations mainly in domestic market, which are exhibiting strong growth rates

  • Integrating API operations with formulations

    OUTCOME

  • Extremely bullish trend in domestic life style segment

  • Rise in prices of Ciprofloxacin, Ranitidine in China

  • MPL’s CRAMS business in Europe is growing

  • 20 ANDA filings expected by Dec 08 and 30 by Dec 09, resulting in Business from USA in excess of US$ 100 million in FY 2011-12

  • Exclusive Out licensing arrangements with leading generic companies to give a boost to its Exports


Equity capital structure

Equity Capital Structure

USDINR 39.5


Investment highlights

Investment Highlights

  • Fully integrated company with strong presence across entire value chain from APIs to formulations to biopharmaceuticals and across key therapy areas and both the evolving and developed markets

  • Strong R&D focus strategically positions MPL in the new patent regime

  • Aggressive foray into new geographies and regulated markets through acquisitions (UK and Australia) to expand global footprint

  • Focus on high-growth therapeutic segments such as lifestyle, anti-diabetic, cardiovascular to advantage from strong demand from US and EU markets

  • Thrust on Biotechnology: Entered the lucrative segment with 8 products in the pipeline of which 3 are already approved by Drug Controller of India

  • World class manufacturing facilities and strong marketing and distribution network in India


Marksans pharma limited investor presentation february 2008

THANK YOU


Marksans pharma limited investor presentation february 2008

API

Formulations

R&D

  • Two manufacturing facilities.

  • Strategy to focus on end-to-end solutions and to develop APIs for ANDA products in-house.

  • Rapidly filing COSs/DMFs into Europe and US markets.

  • Exporting its products to more than 30 countries.

  • Provides API contract manufacturing to many of the world’s leading generic pharmaceutical companies.

  • Key focus areas

    • CVS

    • Anti-diabetic

    • CNS

    • Pain Management

    • GI

  • Expanding its API business by shifting from predominantly domestic market to highly regulated markets of USA and Europe.

  • World class manufacturing facilities: approvals - UK MHRA, Australian TGA. US FDA approval expected shortly.

  • Tie-up with big MNCs globally for offering CRAMS.

  • Product basket covering wide therapeutic areas.

  • Developing post-patent products mostly supported by in house API’s for global markets.

  • Out-licensing tie-ups with big pharma companies for long term manufacturing and marketing.

  • Setting up own front ends in major global markets – US, Europe, Australia, Russia and emerging markets.

  • Strong marketing presence in the domestic markets - wide range of over 250 products in the domestic markets.

  • Speciality segment focus in domestic market.

  • Specialised state of the art Soft gel manufacturing plant.

  • Expanding registration process across geographies

  • DSIR approved research labs in Goa, Pune and New Delhi.

  • Key focus on:

    • Building IP assets and their global registration.

    • End to end solutions , to develop core API’s for ANDA products in-house.

    • Development of technology driven products for the global markets (Sustained release, extended release and Soft gel delivery systems).

    • Development of Niche Liquid gel products (Differentiating plank as very few key players offer the same).

    • Tie ups in place with big multinationals & Generic companies for first to launch status on many products following patent expiration.

  • MPL is already working on two NCE’s in collaboration with Original patent holders, along with ICMR, Govt. of India.

APPENDIX

Company’s Operations


Marksans pharma limited investor presentation february 2008

SWOT

Strengths

Opportunities

World class fully integrated manufacturing facilities

Strong research & regulatory capabilities

Continuous identification and launch of new markets to expand geographies

Market leader position in certain key bulk drugs with strong presence in exports

Highly competent, experienced and professional management team

Strong R&D skills so as to enable in-house product development

Strong marketing platform for pan-India presence

Strong development pipeline to cater to company’s future growth

  • Regulated markets, API and formulations

  • CRAMS for Global markets

  • Lifestyle therapeutic segment in domestic market

  • Increasing rural penetration in domestic markets

Threats

  • Attrition.

  • Competition

  • R&D speed and managing launch

  • Changing regulatory requirements

Weaknesses

  • API operations were focused on Ciprofloxacin and Ranitidine which have suffered substantial price erosion


Marksans pharma limited investor presentation february 2008

BUSINESS SEGMENT -Capabilities across the value chain

Innovator Products (NCE, Inorganics, NDDS)

Drug Discovery R&D

Preclinical Research

Clinical Research

Marksans Footprint

ANDAs, DMFs/COSs

Post Patent Filings

Process Engineering

Synthetic Chemistry

Custom Synthesis

Contract Research

Pharma Development

Contract Manufacturing

Innovation & Value Chain Traversal

Product Patent

Formulations

Global Exports (Regulated Markets)

Regulatory Approvals / services

(US FDA, UK MHRA, EDQM, TGA, ANVISA)

Strategic Alliances & Partnerships

In-house R&D (Goa, Pune, IITD)

First-to-file (Para IV)

Global Acquisitions

In-/Out-Licensing deals

Bulk Actives (API)

Drug Intermediaries

Process Engineering

1970

2005

2010

Industry Maturation (Value Creation)


Marksans pharma limited investor presentation february 2008

BUSINESS SEGMENT -GlobalFormulations

  • Global Foray: Key features:

    • Main markets: US, Europe, United Kingdom, Australia, and other emerging markets. Plans in place to tap huge Russian and CIS markets. Initiated dossier filling in these countries

    • Collaborations: MPL’s products are available through collaborations with big MNC companies

    • Quality Manufacturing: Its robust product basket and quality control measures as well as manufacturing accreditations such as UK MHRA and Australian TGA approved facilities enable MPL to establish its presence in the global markets

    • ANDA filings: List of proprietary products identified which are to be developed post patent expiry - It is filing 10 ANDAs with US FDA by June 2008

    • Sales Front ends: Rapidly built up a generic sales front end in the USA with investments in sales distribution.

    • Acquisitions & approvals: The Company intends to grow inorganically in the global markets:

      • Already acquired an Australian company - Nova Pharmaceuticals. MPL plans to grow inorganically in the US and Europe markets as well

      • Already received approval for 5 products in Australia

  • With a strong focus on the US markets, the company has entered into an agreement with Pharmgen LLC, US for the development and filing of 11 ANDA's. The product list is a mix of off-patent and post patent protected molecules with cumulative annual sales of about USD 17 billion in the US


Marksans pharma limited investor presentation february 2008

BUSINESS SEGMENT -Domestic Formulations

  • Coverage and Divisions

    • Significant presence in major therapeutic areas in domestic market

    • Wide range of over 250 products in the domestic markets (80 feature in the ORG list)

    • These products are marketed through 5 distinct divisions as enumerate below:

  • Marketing Capabilities:

    • Pan India Field force of ~ 450 MRs

    • Carved a distinctive image for its products with innovative and aggressive marketing strategies


Marksans pharma limited investor presentation february 2008

BUSINESS SEGMENT -API

Second largest producers of Ciprofloxacin and Ranitidine in India (Both COSs filed). Together the Ciprofloxacin Hydrochloride and Ranitidine Hydrochloride rank amongst the top 20 highest selling drugs in the world. COS already received for Ciprofloxacin

Provides API contract manufacturing services to world’s leading generic pharma companies

Key Focus Area: CVS, Ant diabetic, CNS, Pain management& Gastro Intestinal

The company is addressing antibiotic and antiulcerant therapeutic segments and in the process in expanding production into CNS, CVS, anti-diabetic and pain management therapeutic segments which are growing radically. These segments are estimated to be worth approximately US $ 20 billion over the next five years

In the domestic markets MPL has embarked on ambitious expansion projects to scale up its existing capacity, to enter new therapeutic segments covering high growth lifestyle-related diseases

MPL has reputed clientele and has been supplying and exporting its products regularly to big pharma companies & to various countries like Japan, Latin America, Bangladesh, Spain, Egypt, Jordan, Iran, Mexico, Germany and Africa


Marksans pharma limited investor presentation february 2008

BUSINESS SEGMENT -API Strategy

  • Expanding its API business by shifting from predominantly domestic market to the highly regulated markets of US and Europe

  • New API’s to be developed based on key products for formulation development with focus on Post patented Products

  • Develop several API’s to provide cost and time advantage to complement MPL’s US and Europe generic filings

  • Continue to be the preferred third party API supplier to the generic industry

  • Rapidly file COSs/DMFs into Europe and US markets (5 DMFs and 5 COSs in 2008-09)

  • New Product introductions:

    • Commenced commercial supply of new products during the year

    • Several validation pivotal batches have been sent to global generic players for their dossier filings


Marksans pharma limited investor presentation february 2008

MANAGEMENT - Organization Chart

Board of Directors

MD & CEO

Formulations

API

R&D/RA

CFO

Head HR

Domestic

Manufacturing

Formulation

Purchases

Global

Sales

API

Distribution

Manufacturing

RA

CS and Legal

Accounting, taxation

and IT


Marksans pharma limited investor presentation february 2008

MANAGEMENT -Board of Directors

Mr. Mark Saldanha –Managing Director & CEO

V Nagraj – Wholetime Director

Dr. Kim Tan – Director, nominee of Springhill Bio-Venture Fund

Mr. Ajay Mittal – Director, nominee of UTI Venture Fund

Mr. Mahesh Parekh - Independent Director

Mr. Kumar Nair -Independent Director


Marksans pharma limited investor presentation february 2008

MANAGEMENT -Promoter

The Company was set up by Mr. Mark Saldanha, a first generation entrepreneur and is rapidly expanding its business operations

Mark Saldanha Managing Director & CEO

Mr. Mark Saldanha, was associated with Glenmark Pharmaceuticals Ltd. as a whole time director and was instrumental in the growth of the company in mid and late nineties, before promoting this venture. He is well versed in the overall management of the company and has vast experience in managing the marketing, production and finance function of the company

The Promoter is currently engaged in the Pharmaceutical business only


Marksans pharma limited investor presentation february 2008

MANAGEMENT -Key Management Personnel


Marksans pharma limited investor presentation february 2008

PRODUCT RANGE - Cerebella: CNS (Neuro - Psychiatry)

  • Introduction

    • Division dedicated to neurosciences for treatment of psychiatry and neurological disorders

    • This market is poised for rapid growth due to lifestyle changes and growing awareness

  • Vision

    • To achieve a growth of 100% in the turnover by 2010

    • Be amongst the top 5 players over a period of five years

  • Segment addressed

    • Antipsychotic

    • Antidepressant

    • Antiepileptic

    • Anxiolytic

    • Memory Enhancer

    • Stroke


Marksans pharma limited investor presentation february 2008

PRODUCT RANGE -Criticare: Oncology + Critical care

  • Introduction

    • Globally Oncology is the fastest growing therapeutic segment

    • MPL is carving out a niche position in Oncology through its Criticare division

    • Criticare division focuses on Cardio care and Life saving higher end antibiotics

    • In - licensing is expected to be the key growth driver for this division

  • Vision

    • Marksans to have the first mover advantage of introducing First time niche molecules like EGF,IL2, Oncophage, INF-Gel,EPO and Cancer Vaccine under this division. In-licensing products like Enoxaparin are to be the key growth drivers for cardio care

    • Biotechnology drugs, antineoplastics and immunomodulators to be the front runners

    • To launch one to two in-licensed biotech products every year in the domestic market through its Criticare division

    • To capture 4% of Indian Oncology market by 2010 & 6% of domestic Critical care market by 2010


Marksans pharma limited investor presentation february 2008

PRODUCT RANGE -Mark Remedies

  • Introduction

    • A multi- specialty division dedicated to GI disorders and Respiratory infections

    • ~ 40% of domestic pharma market of Rs 28,000 crore is attributed to these two disorders

    • MPL markets Prescription/Ethical products focused on women's health, geriatric disorders, internal medicine, nutritional support and lifestyle disorder associated with gastro-intestinal, cardiology and diabetology under this division

  • Vision

    • To reach a turn over of INR 37 crores and emerge as a strong player in the segment

  • Segment Addressed

    • Gastro, Respiratory, Antibiotics, Gynaecology + Others


Marksans pharma limited investor presentation february 2008

PRODUCT RANGE -Zenmark and Marksans: GP & Institutions

These divisions are focused on branded generic products and OTC and have 150 products covering almost the entire Pharmaceutical segment

They mainly cater through tender business to private hospitals, government hospitals, public sector undertakings, AFMSD, Indian Railways, Port Trust, etc

The current product range contains wide spectrum of products to capture maximum business in Institutional sector

The current business is around Rs. 40 Crore

The basket includes orals, parentrals and topicals

Health insurance is gaining wide acceptance and will further give an impetus to Institutional business


Marksans pharma limited investor presentation february 2008

Biopharmaceutical Pipeline


Marksans pharma limited investor presentation february 2008

ACQUISITION - Hale Group: Overview

Marksans Pharma has entered into a share purchase agreement with UK's Hale Group to acquire its entire share capital, along with its subsidiary company Bell Sons & Co (“Bell”). Marksans is acquiring Hale through its 100% subsidiary Marksans Pharma UK. The company is equally owned via the holding company by Philip Hale and Linda Shepherd

Bell is a well-established manufacturer of a broad range of OTC pharmaceuticals having full approval approval of the UK MHRA and currently holds 38 product licences. Licensed products contribute over 45% of Bell’s total turnover

Bell manufactures licensed products both as own branded products and, for certain customers, in own label form together with a range of unlicensed products. Customers include retailers, pharmacies, chemist wholesalers and cash and carry outlets

The company employs 106 people at its freehold licensed manufacturing site in Southport, Merseyside and has further 12 employees providing sales administration, buying and technical support

The company had clocked a turnover of £ 8.03 million and £ 8.94 million respectively for FY’05 and FY’06 (year ending December). The EBITDA margins for the said period stand at 12% and 14% respectively


Marksans pharma limited investor presentation february 2008

ACQUISITION -Hale Group: Products

  • Product Basket:

    • Cough and cold remedies

    • Galenicals

    • Vitamins

    • Palliative and healthcare items

    • Oils

    • Antiseptics and disinfectants

  • The Company currently holds 38 product licences registered with MHRA. Licensed products contribute over 45% of the Company’s turnover

  • Under the OTC pharmaceuticals, the Company supplies its “own label” pharma products to all of the UK’s leading supermarket chains. The own label market now accounts for more than 45% of the Company’s total turnover


Marksans pharma limited investor presentation february 2008

ACQUISITION -Hale Group: Markets

  • The company is a preferred supplier to more than 300 customer all over the country, including the leading retail sector brands and major chemist wholesalers

  • UK markets represents 80% of the customer base and two third of total sales. The company’s largest customer accounts for 6% of total sales only. Thus the business is not customer centric

  • The Company has been in the export markets for more than 80 years now. Its products are well recognised and respected in the overseas markets

  • The company products are sold in more than 40 countries. Key markets are West Africa and Middle East


Marksans pharma limited investor presentation february 2008

ACQUISITION -Hale Group: Financial Summary

P&L Summary

Pounds in million

The company has shown steady and sustained growth over the past 5 years, with turnover increasing by over 40% from £ 6.3 million in 2001 to £ 8.9 million in 2006. Based on the current performance growth is currently running at 5% per annum

The slight decline in gross margin and profitability in 2005 reflects the impact of the new manufacturing plant installed in that year leading to an increase in salary and depreciation costs. The gross margin going forward is likely to improve as the fixed elements of salary and depreciation would form a smaller percentage of cost of sales as turnover increases


Marksans pharma limited investor presentation february 2008

ACQUISITION -Hale Group: Financial Summary

Balance Sheet Summary

Pounds in million


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