Cadila Healthcare Limited has informed the Exchange about Investor Presentation
_________________________________________________________________________
February 3, 2022
Listing Department BOMBAY STOCK EXCHANGE LIMITED P J Towers, Dalal Street, Fort, Mumbai–400 001
Listing Department NATIONAL STOCK EXCHANGE OF INDIA LIMITED Exchange Plaza, Bandra Kurla Complex, Bandra (E), Mumbai–400 051
Re:
Investor Presentation
Dear Sir,
Code: 532321
Code: CADILAHC
Please find attached the Investor Presentation on the unaudited financial results for the quarter ended on December 31, 2021.
Please find the same in order.
Thanking you,
Yours faithfully, For, CADILA HEALTHCARE LIMITED
DHAVAL N. SONI COMPANY SECRETARY
Encl.: As above
Regd. Office: “Zydus Corporate Park” Scheme No. 63, Survey No. 536, Khoraj (Gandhinagar), Nr. Vaishnodevi Circle, S.G. Highway, Ahmedabad – 382481. Phone: +91-07971800000, +91-79-48040000; Website: www.zyduscadila.com; CIN: L24230GJ1995PLC025878
Cadila Healthcare Limited
Results Presentation Q3 FY22 3rd February, 2022
Disclaimer and Safe Harbor Statement
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•
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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 OR JOINT VENTURES (TOGETHER, THE “COMPANY”). The material that follows is a Presentation of general background information about the Company’s activities as at the date of the Presentation or as otherwise indicated. 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 sole responsibility of the Company. By accessing this Presentation, you are agreeing to be bound by the trading restrictions. It is for general information purposes only and should not be considered as a recommendation that any investor should subscribe / purchase the Company shares. This Presentation includes statements that are, or may be deemed to be, “forward-looking statements”. These forward-looking statements can be identified by the use of forward-looking terminology, including the terms “believes”, “estimates”, “anticipates”, “projects”, “expects”, “intends”, “may”, “will”, “seeks” or “should” or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, aims, objectives, goals, future events or intentions. These forward-looking statements include all matters that are not historical facts. They appear in a number of places throughout this Presentation and include statements regarding the Company’s intentions, beliefs or current expectations concerning, amongst other things, its results or operations, financial condition, liquidity, prospects, growth, strategies and the industry in which the Company operates.
By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. 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 growth prospects, and future developments in its businesses and its competitive and regulatory environment. No representation, warranty or undertaking, express or implied, is made or assurance given that such statements, views, projections or forecasts, if any, are correct or that the objectives of the Company will be achieved. There are some important factors that could cause material differences to Company’s 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. This document is just a Presentation and is not intended to be a “prospectus” or “offer document” or a “private placement offer letter” (as defined or referred to, as the case 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 from the Indian public (including any section thereof) or from persons residing in any other jurisdiction including the United States for the subscription to or sale of any securities including the Company’s equity shares. No part of it should form the basis of or be relied upon in connection with any investment decision or any contract or commitment to purchase or subscribe for any securities. None of the Company’s securities may be offered or sold in the United States without registration under the U.S. Securities Act of 1933, as amended, except pursuant to an exemption from registration there from. This document has not been and will not be reviewed or approved by a regulatory authority in India or by any stock exchange in India. This document and its contents should not be forwarded or delivered or transmitted in any manner to any person other than its intended recipient, and should not be reproduced in any manner whatsoever.
Consolidated Financial Highlights Q3 FY22
Revenue
Consolidated Revenue from operations at INR 3,655 Crores, up 1% Y-o-Y and down
3% Q-o-Q.
INR Crores 3,655
Y-o-Y 1%
Q-o-Q -3%
Consolidated EBIDTA at INR 753 Crores down 2% Y-o-Y and down 13% Q-o-Q. EBIDTA margin for Q3’22 is 20.6%, against 22.7% in Q2’22 and 21.1% in Q3’21.
EBIDTA
INR Crores 753
Y-o-Y -2%
Q-o-Q -13%
PAT ex. exceptional and discontinued ops.
INR Crores 500
Y-o-Y 0%
Q-o-Q -16%
Consolidated reported PAT at INR 500 Crores, down 5% Y-o-Y and down 83% Q-o-Q.
PAT ex exceptional and discontinued operations at INR 500 Crores, flat on a Y-o-Y
basis and down 16% Q-o-Q. PAT margin for Q3’22 is 13.7%, against 15.7% in Q2’22 and 13.8 % in Q3’21.
Research & Development (R&D) spend at INR 255 Crores (7% of revenue).
Basic & Diluted EPS ex. exceptional and discontinued operations in Q3’22 is
INR 4.89 vs INR 4.89 in Q3’21.
Net debt as at 31st December 2021 INR 558 Crores vs INR 3,496 Crores as at 31st
March 2021.
Capex for Q3’22 stood at INR 310 Crores.
In Q2’22, the Company reported exceptional items of INR 96 Crores which included profit on sale of brands INR 113 Crores and loss on account of impairment charge for closure of manufacturing facilities (Nesher and Hercon) of INR 208 Crores. PAT from discontinued operations represents PAT from discontinued operations during the period and gain on divestment of Animal Health Established Markets Undertaking of INR 2,491 Crores (net of tax expenses) in Q2’22.
Consolidated Financial Performance Q3 FY22
Particulars INR Crores Revenue from operations Gross Contribution Gross Contribution % to Revenue from operations Employee benefits expense * Research and development expenses Other operating expenses EBIDTA EBIDTA Margin as % to Revenue from operations Other income Finance Costs Depreciation and amortisation expenses Profit before exceptional items Profit after exceptional items Tax expenses Share of profit of joint ventures (net of tax) PAT from continuing operations PAT from discontinued operations# Reported PAT PAT before exceptional items and discontinued operations PAT Margin as % to Revenue from operations
Q3 FY22 Q2 FY22
Q-o-Q Growth
Q3 FY21
Y-o-Y Growth
YTD FY22 YTD FY21 Growth
3,655 2,308 63.1% 523 255 778 753 20.6% 61 31 183 599 599 111 22 500 - 500
3,785 2,403 63.5% 588 224 730 861 22.7% 53 30 185 699 604 100 12 506 2,496 3,002
500
593
13.7%
15.7%
-3% -4%
-11% 14% 7% -13%
14% 3% -1% -14% -1% 11% 81% -1%
-83%
-16%
3,633 2,432 66.9% 562 348 755 767 21.1% 27 27 176 590 590 105 16 501 27 527
501
13.8%
1% -5%
-7% -27% 3% -2%
124% 15% 4% 1% 1% 6% 44% 0%
-5%
0%
11,465 7,361 64.2% 1,707 773 2,334 2,546 22.2% 146 89 551 2,053 1,957 352 42 1,571 2,519 4,090
10,807 7,182 66.5% 1,670 899 2,242 2,371 21.9% 77 140 524 1,784 1,652 323 44 1,378 76 1,455
6% 2%
2% -14% 4% 7%
89% -37% 5% 15% 18% 9% -5% 14% 3201% 181%
1. Reduction in GC margins is mainly due to pricing pressure in US business and input cost increase.
2. De-growth in employee
benefits expenses is mainly due to closure of manufacturing facilities (Nesher and Hercon).
3.
Increase in finance cost is mainly due to increase in INR borrowings which is more than offset by interest income and other treasury income - both shown in Other Income.
1,658
1,503
10%
14.5%
13.9%
* Excludes Research related expenses # PAT from discontinued operations represents PAT from discontinued operations during the period and gain on divestment of Animal Health Established Markets Undertaking of INR 2,491 Crores (net of tax expenses) in Q2 FY22.
Business wise Sales Q3 FY22
Ex. COVID opp. & others*
(Y-o-Y ▲12%)
(Q-o-Q ▼6%)
INR Crores
* Others include generics business and divested brands in human formulation business in India
Ex. COVID opp (Y-o-Y (Q-o-Q ▲7%) ▲3%)
Ex. COVID opp.
& others*
(Y-o-Y ▲17%)
(Q-o-Q ▼8%)
Market, Sales Value Q3 21-22 % share in consolidated sales ▲% Growth
Business wise Sales YTD FY22
Ex. COVID opp. & others* ▲17%
INR Crores
* Others include generics business and divested brands in human formulation business in India
Ex. COVID opp. ▲12%
Ex. COVID opp. & others* ▲22%
Market, Sales Value YTD 21-22 % share in consolidated sales ▲% Growth
India Geography: Human health formulations business
INR Crores
Highlights
Gained market share in our core therapies of anti-diabetic, cardiovascular, gynecology and anti-infective therapeutic area on a y-o-y basis.
Lipaglyn catapulted among the top 100 brands and was ranked 92nd* in Indian pharma market. This is a jump of 183 ranks i.e. from 275 to 92 during the current quarter.
On the super specialty front continued to retain leadership position* in the Nephrology segment and in the oncology space, we were the fastest growing company in India.
The business posted a strong growth of 17% on a y-o-y basis excluding sales of COVID opportunities, generics portfolio and divested products.
* (Source: AWACS)
Y-o-Y ▼2% Q-o-Q ▼11%
India Geography: Consumer Wellness
INR Crores
Highlights
Y-o-Y
▲2% Q-o-Q ▲1%
5 out of 7 brands maintained their leadership position in
their respective categories.
The business experienced lower growth in sales due to:
High base during previous year comparable period
which was accentuated by slowdown in rural growth.
Implementation of a continuous replenishment
process as part of the IBP tool. This has resulted in lower inventory level and better availability of fresh stocks with the consumers.
To counter commodity inflation, the price hike taken in key brands towards the end of Q2 FY22 helped in protecting the gross margins during the quarter.
IBP = Integrated Business Planning
US Formulations Business
INR Crores
Highlights
Y-o-Y
▼6%
Q-o-Q
▲0.4%
On a q-o-q basis the business remained flat despite
continued pricing pressure in the market and decline in sales of Mesalamine products as it managed to gain volumes in other existing and new products.
Launched 3 new products including “Nelarabine injection” for which 180 days of exclusivity was granted and product was launched immediately upon approval.
12 ANDAs filled including first drug-device combination
product on NCE-1 date, 2 products as single source and 2 products as limited competition products.
ANDAs ANDAs
Fillings
Approvals
Q3 FY22 Q3 FY22
YTD FY22 YTD FY22
12
9*
25
25^
* inclusive of 5 tentative approval, ^ inclusive of 12 tentative approvals.
Emerging Markets
INR Crores
Highlights
Due to its presence in diverse geographies, the business
managed to overcome challenges emerging out of political and economic uncertainty in some of the markets as these were offset by strong growth in other markets.
Y-o-Y ▼1%
Q-o-Q
▼16%
New products dossiers filing in Q3’22:
• 3 with the Brazilian Regulatory authority • 4 with Mexican regulatory authority
Emerging Markets business posted a growth of 7% on a
Y-o-Y basis excluding COVID opportunities.
ZyCov-D Vaccine Update
Received an order from the Government of India to supply 1 crore doses of the vaccine. Already started the supplies of the vaccine to the Government of India against their order.
Supply of commercial batches of drug substance of the vaccine from the facility of Shilpa Medicare Limited shall begin from the current month which will help meet demand.
Lancet has accepted our submission of the interim analysis of Phase III clinical trial results of ZyCov-D vaccine for publication.
Entered into a manufacturing license and technology transfer agreement for ZyCov-D with Enzychem Lifesciences of South Korea.
Partnership with Enzychem Lifesciences will lead to manufacturing of over 80 million doses of the vaccine in 2022. These doses will be supplied in South Korea and a number of countries in Latin America and Asia.
Updates on Innovation
NCE: Saroglitazar Magnesium
• Initiated a global pivotal Phase II(b)/III CT viz. EPICS-IIITM to evaluate its efficacy and safety in patients with PBC for the US
market.
• Phase II(a) results of EPICS CTs published in the journal of Hepatology demonstrated that molecule holds immense potential
based on its safety and efficacy profile.
• Initiated enrolment of patients for EVIDENCES-X, another global pivotal Phase II(b) CT to evaluate the efficacy and safety of
the molecule in subjects with NASH and Fibrosis indications.
NCE: Desidustat
• Submitted an NDA of the molecule to DCGI for treatment of anemia in patients with CKD both on Dialysis and not on Dialysis.
This molecule will further consolidate our leadership position in the Indian nephrology market.
NCE: Anti-malarial compound ZY19489
• The molecule which is being developed in collaboration with Medicines for Malaria Venture (MMV); received an ODD from the
USFDA.
• ZY19489 is active against all current clinical strains of P. falciparum and P. vivax, including drug resistant strains. Phase- I study
has shown long half-life and potential for a single-dose cure for malaria.
CT = Clinical Trial; NASH = Non-Alcoholic Steatohepatitis, PTMS = Post-Transplant Metabolic Syndrome, NDA = New Drug Applications, PBC = Primary Biliary Cholangitis, CKD = Chronic Kidney Disease, ODD = Orphan Drug Designation, HIF-PH = Hypoxia-inducible factor prolyl hydroxylase.
Updates on Innovation
NCE: ZYIL1
• Received regulatory permission to initiate Phase II(a) CTs in patients with CAPS in Australia.
Biosimilars and novel biologics
• Completed Phase III CTs for one mAb and received the permission from DCGI to initiate Phase III CTs for one mAb.
• Submitted an application to RCGM to conduct pre-clinical toxicity studies for one product.
On the novel biologics front, a humanized monoclonal antibody designed to downregulate the alternative complement
pathway; completed a critical non-human primate PK/PD study and established that the molecule has a good PK/PD and safety profile.
505(b)(2) and Specialty initiatives
• Under the rolling submission, an initial module of an NDA of CUTX 101 was filed with the USFDA; approval likely by the end of
CY22.
• Received a clearance from the USFDA for an IND application for a pain management product; NDA is expected to be filed by
the end of FY22.
• Concluded preNDA meetings with the USFDA for 2 products in the area of metabolic disorder and submitted a pIND meeting
request for 1 product in the orphan space.
CAPS = Cryopyrin- Associated Periodic Syndrome, CTs = Clinical Trials, IND = Investigational New Drug, NDA = New Drug Applications, RCGM = Review Committee on Genetic Manipulation, mAb= monoclonal antibody
EUA represents Emergency Use Approval, DGCI represents Drug Controller General of India,
Thank you
Zydus Corporate Park, SG Highway, Near Vaishnodevi Circle, Ahmedabad, 382481, India
Glossary
• Revenue from operations represents Sales and other operating revenues.
• Net debt: It is defined as the sum of long-term borrowings, short-term borrowings, minus cash and cash equivalents, current investments,
and other bank balances.
•
•
EBIDTA: Earnings before interest, depreciation, taxation and amortization and it includes other operating revenues and excludes other income for the relevant period.
EBIDTA Margin: Its calculated by dividing EBIDTA for the relevant period by Revenue from operations.
• Gross Contribution Margin: Its computed by dividing revenue from operations minus material cost for the relevant period by revenue from
operations for the relevant period multiplied by 100.
•
PAT: It represents Net Profit after Non-Controlling Interests.
Details of other operating income, other income and foreign exchange fluctuations
Other Operating Income Particulars INR Crores Export Incentive Exchange Rate Fluctuations Processing Income Others Total other operating income
Other Income Particulars INR Crores Dividend and Interest Income Exchange Rate Fluctuations Profit on sale of Investments Others Total other income
Details of foreign exchange fluctuations Particulars INR Crores A. On operating transactions (above EBIDTA line)
a. Included in other operating income b. Included in cost of goods c. Included in other operating expenses
B. On other non-operating income C. On foreign currency borrowings (part of interest cost)
Total Foreign Currency Fluctuations (+ = loss, - = gain)
Q3 FY22 Q3 FY21
17 18 10 65 111
10 0 6 26 42
Q3 FY22 Q3 FY21
19 13 26 2 61
15 2 2 8 27
Q3 FY22 Q3 FY21
-18 -18 -0
- -13 -
-31
-
5
1 5 -2 1
4
Y-o-Y Growth
68.3%
81.8% 153.4% 166.4%
Y-o-Y Growth
26.8%
-70.5% 123.5%
Y-o-Y Growth
-430%
-104% -100% -671% -100%
YTD FY22 YTD FY21
37 97 23 159 316
107 0 17 66 190
YTD FY22 YTD FY21
43 45 51 7 146
43 2 8 25 77
YTD FY22 YTD FY21
-95 -97 2
- -45 -
-
8
-3 11 -2 -7
-0
-827%
-140
Y-o-Y Growth
-65.1%
34.7% 141.4% 66.8%
Y-o-Y Growth
-0.8%
-70.0% 88.6%
Y-o-Y Growth
162% -100%
100%