Lupin scaling new heights may 8 2013
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Lupin scaling new heights may 8 2013

LupinScaling new heights….May 8, 2013


Safe harbor statement

Safe Harbor Statement

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 disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.


Lupin scaling new heights may 8 2013

Vision: To be an innovation

led transnational pharmaceutical company


Lupin scaling new heights may 8 2013

Pharma Landscape


Global generics to grow from 242b to 400b in 2016

Global generics to grow from $242b to $400b in 2016

France : 41 6 8

Germany : 45 710

UK : 22 57

USA : 322 4778

Canada: 22 67

China : 6731 58

India : 1413 27

Italy : 29 3.5 4.5

Spain : 23 2 3

Japan: 111 6 10

2011 Total Mkt

Brazil : 30 15 28

Mexico : 10 48

2011 Gx

2016 Gx

Australia : 13 1.5 2.5

Source; IMS market prognosis, May 2012

Generic Mkt 2011- $242 b

Generic Mkt 2016- $400 b

Overall growth: 65%

CAGR: 11%

PharmaMkt 2011- $956 b

PharmaMkt 2016 - $ 1145 – 1235b


Bric fuelling generics overall growth

BRIC – Fuelling generics & overall growth

  • Rapid growth in generics driven by :

  • Economic growth

  • Healthcareexpenditure

  • New products

  • Structural changes in healthcare systems

Source; IMS Health, Epsicom & Bloomberg


Industry trends drivers

Industry Trends & Drivers

Headwinds

Tailwinds

  • Generics are the obvious winners of any healthcare reform (affordable care)

  • Price control measures & inclination of moving branded generics to generic – generic (e.g. India, EU5)

Potential opportunities in the bio-similars space (regulatory pathway evolving across markets)

Patent cliff - ~$60b of drugs going off patent in 5 years (2014 to 2018), as against ~$70b in 3 years (2011 to 2013)

Big Pharma pursuing BGxopportunities

  • Industry under consolidation phase (lesser number of competitors). Partnering opportunities

Increasing regulatory costs & oversight

Ageing population


Lupin scaling new heights may 8 2013

Momentum gained so far…


Lupin today

Lupin Today

  • 8th largest Market Cap amongst Global Generic Companies ~$5.7 billion

  • Revenues > $ 1.74 billion

  • Top 4 Pharmaceutical company in India

  • US and Domestic business outperforming industry

  • Onshore presence in 10 countries (significant presence across 4 countries)

  • R&D expenditure @ 7.5% of net sales

  • Vertically integrated

  • 12 manufacturing sites (5 US FDA approved) (2 sites in Japan)

Conversion rate: USD = INR 54.30


Lupin scaling new heights may 8 2013

Awards & Accolades

  • NDTV Business Leadership Awards - PharmaCompany of the Year 2012

  • Lupin was ranked 1st amongst pharma companies in the Great Place to Work survey ‘Best Companies to work for 2012, India’ and amongst the Top 50 companies overall

  • NSE included Lupin in the S&P CNX NIFTY index

  • Ernst & Young Entrepreneur of the Year 2011, for Life Sciences and Health Care: Dr DeshBandhuGupta

  • Ernst & Young Family Business Award 2012: Ms. Vinita Gupta

  • CVS Caremark Supplier Partner Award winner - Pharmacy Category for 2012


Lupin scaling new heights may 8 2013

Evolved into a multinational company with >70 % of turnover from outside India

4th largest pharma company in India

5th largest and fastest growing generic player in the US by prescriptions

7th largest and the fastest growing generic player in Japan

Consistent track record of growth

Net Sales - CAGR 27%

EBITDA - CAGR 29%

Figures in USDm


Lupin scaling new heights may 8 2013

Profit & shareholder returns

Net profit -CAGR 26%

Figures in USDm


Lupin scaling new heights may 8 2013

Corporate Highlights FY13

423

1,742

242

58%

  • Net sales grew by 36% to USD 1,742 m during FY13

  • EBITDA margins grew to 24% during FY13 from 21%

  • Growth across all geographies

    • US business (including IP) grew by 49%

    • India Region Formulation sales grew at 24%

    • Japan grew by 52% and South Africa grew by 26%

36%

52%

1,282

269

160

  • Continued investment for growth

    • Capital expenditure at USD 90m.

    • R&D revenue expenditure 7.5% of net sales at USD 131m

    • Filed 21 ANDAs


Lupin scaling new heights may 8 2013

Consistent execution leading to QoQ & YoY growth

Net Sales (USDm)

PAT (USDm)

EBITDA %


Lupin scaling new heights may 8 2013

Business Mix – FY13

Geographical breakup

US sales split

Major markets (Net sales)

Sales break up


Lupin scaling new heights may 8 2013

Key financial indicators

Profitability / Returns

Financial ratios


Lupin scaling new heights may 8 2013

Geography wise performance


Lupin scaling new heights may 8 2013

United States

Net sales (USDm)

694

  • Brand business grew by13% while generics grew by 70%

  • Brands business ~21% of the US sales

  • US business clocked USD 693 m

  • Received approval for Suprax drops

  • 14 ANDA approvals received & 10 products launched during the year

  • Strong base business

    • #1 in 24 out of 46 products (IMS Mar’13)

    • Top 3 in 37 out of 46 products (IMS Mar’13)

    • 5th largest generics player (IMS Dec’12)

  • Challenges

    • Generic challenge for Antara

  • Strong Pipeline

  • 116 pipeline products (market $ 54 b)

  • 25 first to file generics, (market ~$13 b)

  • 12 exclusives (market ~$1.62 b)


Lupin scaling new heights may 8 2013

India

Net sales (USDm)

  • Ranked 7thon Month MAT Jan’13 basis.

  • Chronic & Semi-Chronic therapies now constitute 60% of the portfolio

  • Gluconormand Tonact contributed above Rs.1,000m in sale

  • Ranked 3rdin CVS segment as per growth rate.

  • CNS/Neurosegment grew 19.1% against market growth of 12.6%

  • Ranked 7thin Anti Diabetics segment with growth of 23.1%

  • Retained its top position with 44.6% market share in Anti TB segment

435

24%

351


Lupin scaling new heights may 8 2013

India

Chronic & Semi-chronic therapies now account for 60% of the portfolio


Lupin scaling new heights may 8 2013

Japan

Net sales (USDm)

  • Completed 5 years in the Japanese market

  • Sales increased from USD 86million to USD 240 million during 5 years

  • In JPY terms consolidated net sales increased to JPY 19,785 m, entailing a YoY growth of 39%

  • Kyowa excluding Irom grew by 14% to JPY 13,984m

  • Supply chain integration from India:

    • Goa facility received first 3 approvals in formulations

    • Tarapur facility received 2 approvals in API

  • 11 products launched during the year

240

159


Lupin scaling new heights may 8 2013

ROW sales

  • Pharma Dynamics emerged as the 5th largest generic company in South Africa and the no.1 CVS company during FY13.

  • Launched OTC products in Australia under the umbrella of “Pharmacy Action”

  • Multicare amongst the fastest growing generic companies in the Philippines, improving its ranking from 39 to 34 last year

  • Largest supplier of Anti-TB products to WHO

Net sales (USDm)

154

113


Lupin scaling new heights may 8 2013

API

Net sales (USDm)

694

  • Strategic input into formulations business

  • #1 TB and Ceph player globally

  • API business grew by 12% from USD 466 m. to USD 694 m in FY13

  • Increasing focus on US API

466


Lupin scaling new heights may 8 2013

R&D

131

R&D spends (USDm)

  • Total expenditure at 7.5% of sales

  • Talent pool of 1200+ scientists

  • 176 ANDA filings, of which 78 have been approved by the U.S. FDA &138 US DMFs filed to date

  • Filed 21 ANDAs & received 14 approvals during the year

  • Increased focus on F2F (25 filings in pipeline)

    • NDDD:

      • Pipeline of 10 programs in various phases of drug discovery

    • Bio-similars:

      • Approval received for GCSF (Filgrastim)

      • Pipeline of 10 drugs in various phases of development


    Lupin scaling new heights may 8 2013

    Future direction


    Lupin scaling new heights may 8 2013

    Growth Levers & Enablers

    • Healthy pipeline

      • Value added generics

      • Specialties

    • NDDR program

    • Geographical expansion

    • Brands

    • Platform technologies

    • Disruptive costs

    • Supply chain efficiency

    • Leadership pipeline & capability building

    • Sustainability initiatives (people, planet & profitability)


    Thank you

    Thank You


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