Syngene International Limited has informed the Exchange about Investor Presentation
Ref: Syn/CS/SE/IP/2022-23/July/10
July 20, 2022
To, The Manager, BSE Limited Corporate Relationship Department Dalal Street, Mumbai – 400 001 Scrip Code: 539268
Dear Sir/Madam,
Syngene International Limited Biocon SEZ, Biocon Park, Plot No. 2 & 3, Bommasandra Industrial Area, IV Phase, Jigani Link Road, Bengaluru 560099, Karnataka, India. T +91 80 6891 8000 F +91 80 6891 8808 CIN: L85110KA1993PLC014937 www.syngeneintl.com
To, The Manager, National Stock Exchange of India Limited Corporate Communication Department Bandra (EAST), Mumbai – 400 051 Scrip Symbol: SYNGENE
Sub: Investor Presentation under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
With reference to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find enclosed the Investor Presentation for the quarter ended June 30, 2022. The Company will use this presentation for any meeting scheduled with analysts or institutional investors up to September 30, 2022.
The above-mentioned Investor Presentation will also be available on website of the Company www.syngeneintl.com.
This is for your information and records.
Thanking You, Yours faithfully, For SYNGENE INTERNATIONAL LIMITED PRIYADARSHIN I MAHAPATRA ___________________ Priyadarshini Mahapatra Company Secretary and Compliance Officer
Digitally signed by PRIYADARSHINI MAHAPATRA DN: c=IN, o=Personal, pseudonym=bc2eb3d598e4b4695dfab584d8c4954317f2c9b276b 0ead69f4b6de415c5150d, 2.5.4.20=3b3032863a60d6cf503dc962d0b81de07d5cef26229a00b 5f723a1ef57ab0005, postalCode=751015, st=ODISHA, serialNumber=df67e39aa5435d22f718c22d0516d97afb1208536f4 f1860285e06c72d0c9992, cn=PRIYADARSHINI MAHAPATRA Date: 2022.07.20 15:00:19 +05'30'
Enclosed: Investor Presentation.
Investor Presentation
July 2022
Safe harbour
Certain statements in this release concerning our future growth prospects are forward-looking statements, which are subject to a number of risks, uncertainties and assumptions that could cause actual results to differ materially from those contemplated in such forward-looking statements.
Important factors that could cause actual results to differ materially from our expectations include, amongst others general economic and business conditions in India, business outlook of our clientele and their research and development efforts our ability to successfully implement our strategy, our growth and expansion plans and technological changes, changes in the value of the Rupee and other currencies, changes in the Indian and international interest rates, change in laws and regulations that apply to the Indian and global biotechnology and pharmaceuticals industries, increasing competition, changes in political conditions in India and changes in the foreign exchange control regulations in India.
Neither the company, nor its directors and any of the affiliates have any obligation to update or otherwise revise any statements reflecting circumstances arising after this date or to reflect the occurrence of underlying events, even if the underlying assumptions do not come to fruition.
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Contents
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3
4
5
Operating Highlights
Syngene – Putting Science to Work
Strategic Advantages
Financials
Shareholding and Share Information
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1
Operating Highlights
Q1 FY23 performance
Operating Highlights
Q1 Financial Highlights
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Strong underlying performance across all business divisions
The contribution from the Development and Manufacturing Services divisions drove the growth momentum against a low base in the previous year.
The Dedicated Centers and Discovery services divisions delivered continued growth
The first quarter results are against a strong quarter last year due to sales of remdesivir. Excluding the impact of remdesivir, the underlying revenue from operations growth in the quarter was around 30% year-on-year
Signed a 10year agreement with Zoetis for commercial manufacturing of Librela®, a first-of-its-kind injectable monoclonal antibody to alleviate pain associated with osteoarthritis in dogs.
Total Revenue Rs. 6,600 Mn
EBITDA Rs. 1,883 Mn
Established kilo lab for polymer and speciality materials to reduce the development timelines for clients looking for customizable and flexible systems to expedite formulation and process development services
Profit After Tax Rs. 739 Mn
EBITDA Margin at 29% PAT Margin at 11%
*Proteolysis targeting chimeric
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Syngene signs 10 year manufacturing deal with Zoetis worth up to $500Mn
• Marks an inflection point for Syngene’s Development and Manufacturing
Revenue:
Services Division
• Will position Syngene as a leading Contract Development and Manufacturing
Organisation (CDMO) in animal health globally
About the deal
• Syngene will manufacture drug substance for Librela®, subject to regulatory
approvals
• Product already launched in Europe, the UK and Switzerland and won ‘Best new
companion animal product’ by IHS Markit Connect in 2021 for its transformational impact on pain relief for canines suffering from this debilitating condition
• Deal initially centered on Librela®, paves the way for development and
manufacturing of other molecules in the coming years for Zoetis
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At full capacity utilization, Biologics business is expected to generate an asset turnover of about 1x
Capacity utilization depends on market demand and is subject to regulatory approvals
Around 10% of cumulative investment in Biologics
Margins
•
EBITDA margins for Biologics depend on the complexity of process and raw material component. Margins are expected to be inline with overall Syngene margins as capacity utilization increases
Capex
•
FY23 capex guidance of $100Mn factors ca.30% of capex for biologics
Above information is directional input for analyst modeling and is subject to safe harbour clause part of this document
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Revised FY23 guidance: upgraded revenue growth from mid teens to high teens
Parameter
FY23 Guidance (April 2022)
Revised FY23 Guidance (July 2022)
Revenue from operations
Mid-teen growth
High- teen growth
EBITDA Margin
EBITDA margin around 30%.
EBITDA margins around 30%
PAT* Growth
PAT growth rate for the full year expected to be in single digit.
PAT growth expected to be in single digit
*before exceptional items
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2
Syngene – Putting Science to Work
Partner in innovation: #Puttingsciencetowork
Who we are and what we do Working with innovators from around the world to find solutions to their scientific challenges
Integrated solution provider across research, development manufacturing
Covering pharma, biotech, nutrition, animal health, consumer goods and specialty chemical
Clients across the globe
Innovative culture driven by the expertise of 7,500+ employees, state-of-the- art infra and market- leading technology
Well established in scientific research and development, emerging presence in commercial manufacturing of small and large molecules
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Key facts and figures
420+ active clients
15 collaborations with top 20 pharmaceutical companies
400+ Patents held with clients
World class infrastructure of 2 Mn sq. ft. qualified to meet international standards
Rs. 39,435 Mn (US$526Mn*) Gross Block of Investments ^
Rs. 26,570 Mn (US$354Mn*) FY22 Revenue
Rs. 4,211 Mn (US$56Mn*) FY22 PAT before exceptional item
87% Talented team of scientists
All figures are as on March 31, 2022, unless otherwise specified. *At Rs75/US$
^Tangible and Intangible Assets
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International accreditations
• USFDA,OHSAS 18001,
• GLP, cGMP, AAALAC & CPCSEA Certified Facilities
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CAP accreditation, ISO/IEC 27001:2013 accreditation
EMA and PMDA approved, AAALAC Accredited facility
The safety assessment laboratories and large molecule bioanalytical lab are ISO IEC 17025:2017 certified by the National Accreditation Board for Testing and Calibration Laboratories (NABL).
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Our experience spans multiple industry segments and partnerships with global leaders across the world
Large & Mid-Sized BioPharma
Emerging BioPharma (EBP)
Universities
Animal Health
AgroChem
Consumer products
Clinical-stage company creating novel medicines targeting
G protein-coupled receptors (GPCRs)
European clinical-stage biopharmaceutical focused on Oncology
Global food and beverage company
Leading China based crop protection company
Large Japanese chemical company
Large MNC focussed on Agriculture & Nutrition segments
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Our journey so far
Globalization and strategic collaboration • Expanded into formulations development • Contract with Endo Pharmaceuticals to develop novel anti cancer
biological therapeutic molecules
• Collaboration with Baxter to set up a dedicated R&D center • Extension of collaboration with BMS; Merger of Clinigene • Crossed annual turnover of Rs. 5 Billion
Foundation • Operations started • Expansion of R&D Lab • Granted 100% EOU status by the Government of India
1993 – 2000
2010 – 2014
2001 – 2009
Expansion • Expanded service offerings to
include chemical development, safety assessment, biologics development
• Collaboration with BMS to set
up BBRC, Syngene’s first dedicated R&D Center
2015 – 2018
IPO and further collaborations • IPO and listing • Collaboration with Amgen to set up a dedicated R&D center
2019 – 2022
Continued investments and growth • Expanded collaboration with BMS;
Baxter Amgen and Zoetis • Expansion of IDD platform •
Laboratory capacity expansion in Bangalore, Hyderabad
• Expansion in Mangalore for
commercial API mfg.
• Capacity and capability addition in
Biologics manufacturing
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Our span across the value chain, making us one-stop solution provider enabling us to capture the opportunity
Research business
Development and Manufacturing business
Discovery Services
Dedicated R&D Centers
Development Services
Manufacturing Services
Flexible Platform with capability across multiple modalities including small molecule, large molecule, Peptide, Oligos, ADC, PROTACs
SynVent Platform for Integrated Drug Discovery
Ring-fenced infrastructure for exclusive, dedicated operations for an individual client
Multi-disciplinary scientists
Access to entire Syngene ecosystem for research and development operations
Pre-clinical to clinical trials
Manufacturing of small and large molecules for commercial supplies
Drug substance and drug product development
cGMP-compliant facilities
Associated services to demonstrate the safety, tolerability and efficacy of the selected drug candidate
State-of-the art API manufacturing and biologics manufacturing facilities
cGMP compliant manufacturing of clinical supplies, and registration batches for small molecules
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Our collaboration models
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2
Dedicated R&D Labs
FTE
• Dedicated scientific and support teams work exclusively on the client’s project
• Clients are provided with customized and ringfenced infrastructure
• Long-term strategic alliances that last usually five years or more
• Pre-defined numbers of scientific personnel from pre-determined disciplines work full- time on client projects
• Deliverables and team composition evolve as the project advances
• Agreements are
typically renewed annually
3
FFS
• Client collaboration to deliver agreed services within a defined scope.
• Flexible, on demand
personnel and research infrastructure deployed to achieve the project objectives
• Engagements may be short or long-term
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5
6
Productivity based model
Risk-reward
• Offer the services directly linked to productivity generated by our team
• Across a portfolio of stage gate-driven research projects
• Client benefits from reduced upfront payments in exchange for significant success- based milestone payments against pre agreed criteria
Delivery based contract for CDMO business
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Per Kg Per Batch model with built in milestones progressing towards achievement of outcome and delivery of drug substance, drug product
… and are open to any single or combination of above
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Backed by world class state of the art infrastructure
HQ Campus 90 acres in Bangalore where most of Syngene’s capabilities are housed today
R&D Expansion Genome Valley, Hyderabad, India commenced operation in Aug 2019
Biologics Expansion HQ Campus Biologics Manufacturing plant scale: Mammalian- ~100-2000L Microbial - ~200-500L
API Manufacturing Expansion Commercial Manufacturing to support product launch in Mangalore, India - Commenced operation in March 2020; Capacity: 70KL; Reactor size: 2-12KL
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Agile and experienced workforce; Building capabilities and careers to sustain growth
~6000 strong total headcount
87% scientists delivering quality output and creating competitive edge
PhDs Master's Degree
Others
10%
28%
Environment that engages our employees and enables them to grow
Nurturing fresh talent and science
• Syngene Training Academy (STA) offers recruits a six-month extended induction to help them understand and align with Company’s goals, vision and core values as well as learning skills of an industrial scientist
• Science Certification Program aims to enhance capabilities of scientific staff and provide opportunities for continuous learning. The program comprises multiple modules delivered by recognized industry leaders and academics
Upskilling managers
Promoting workplace diversity
• Emerging Leaders Development Program identifies emerging management talent and support those
individuals to transition from managerial to leadership roles
• Providing
training in people management, communications and performance management to equip
managers realize their potential and make positive contributions to the organizational goals.
• 27% female employees vs 16% in FY16
• 34% of employees onboarded were female. Company had 22% females in management positions, as
62%
against 14% in FY21.
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Operational robustness driving strategy execution
Established model of continuous improvement driven by certified operational leaders Six Sigma Black Belt certified staff in each service line and support functions Green belt certified staff across operations All employees white belt certified
Anytime audit ready organization Process automation and digitization
7 successful USFDA audits in the last 4 years
Expansion of footprint and organization wide capabilities to support growth Lab space expansion in Hyderabad, capacity expansion in biologics
Digital as a differentiator AI Platform IOT for maintenance and infrastructure reliability Data Management, IT infrastructure and security systems that strengthen our proposition as a strategic partner to clients
Strong and distributed commercial organization Leaders based out of US, Europe, UK and Asia Closer to client locations
Strategic Sourcing that makes a difference Strong resilient supply chain capabilities successfully navigating global supply chain disruption Supply sources distributed across the world to ensure business continuity
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3
Strategic Advantages
Syngene’s Strength
A Global CRO/CDMO •
Integrated Drug Discovery, Development and Manufacturing service provider
• Small and Large Molecules, ADCs, Oligonucleotides • Listed on Indian Stock Exchanges (NSE and BSE)
IP Position • IP can be fully assigned to clients • Strong track record of Data Integrity
and Security
• Over 400+ patent assignments by
clients recognizing Syngene
Quality Focus • Quality driven organization • Excellent track record of compliance with
global regulators
• US FDA, EMA and PMDA approved, GLP Certified, AAALAC Accredited facility
• 15+ regulatory and ~250 client audits in the last
3 years
Scientific Ecosystem • 2 Mn sq. ft.world-class R&D and Manufacturing
infrastructure
• Sites in Bangalore, Mangalore, and Hyderabad • ~5300 qualified scientists including ~500 PhDs • Highly effective supply chain practices •
Large molecule capacity of 10,000 L and small molecule capacity of 70,000 L
Marquee + ~ 420 active clients • Partnering with large / mid-size / emerging
BioPharma (EBP) and other industries
• Clients concentrated in US, Europe & Japan • Track record of working with diverse industry
sectors
Track Record • Collaborations and partnerships to deliver numerous clinical candidates
• Delivery history for integrated
CMC programs towards FIH and beyond
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Strong track record of growth and profitability
Total Revenue (Rs. Mn)
FY18 to FY22 - CAGR 16%
20,935
22,489
19,007
26,570
14,849
EBITDA (Rs. Mn)
FY18 to FY22 - CAGR 13%
6,995
7,364
8,489
6,119
5,266
Profit Before Tax * (Rs. Mn)
FY18 to FY22 - CAGR 8% FY18 to FY22 - CAGR 8%
4,154
4,456
4,342
3,725
5,151
FY18
FY19
FY20
FY21
FY22
FY18
FY19
FY20
FY21
FY22
FY18
FY19
FY20
FY21
FY22
Gross Block^ (Rs Mn)
EBITDA margins
Sustained above 32%
Profit After Tax * (Rs. Mn)
FY18 to FY22 - CAGR 8%
30,171
21,612
16,610
39,435
34,599
35%
32%
33%
33%
32%
3,054
3,316
3,662
3,821
4,211
FY18
FY19
FY20
FY21
FY22
FY18
FY19
FY20
FY21
FY22
FY18
FY19
FY20
FY21
FY22
*Before exceptional items
^Tangible and Intangible Assets
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Multiple levers for growth going ahead
Expand/Extend Existing Clients • High service integration • Dedicated centers model
Engage New Clients •
Tailored service offerings and dedicated personnel
Offtake in commercial manufacturing in both biologics and small molecule API
Integrated Drug Discovery •
Go to model, with an integrated scientific solution provider, delivering end to end client’s requirements
Client Engagement
Capacity
Forward Integration
Capability
Capacity Expansion • •
Consistent investment FTE services, manufacturing, formulation, biologics, stability
Capability Additions •
New capabilities across multiple domains incl. the allied sectors Stability, analytical and bio-analytical services, viral testing, Oligonucleotide bioinformatics New platforms: ADC,CAR-T,PROTACs
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Our end-to-end platform enables us to be a 'one-stop-shop' for discovery, development and manufacturing (small and large molecules)
Small Molecules
Large Molecules
Antibody-Drug Conjugates
PROTACs
Discovery
Development
Manufacturing
Chemistry
Biology
Drug Substance Development
Drug Product Development
Clinical Supplies
Integrated Drug Substance – Drug Product
HPAPI
Safety Assessment
Specialty Molecules
Oligonucleotides
Integrated Drug Discovery
Therapeutic Antibody Discovery & Engineering; Cell Line Development
HPU* (Phase 1)
Bio Analytical Lab (Large Molecules)
Stability & Analytical Services
Commercial Supplies
Bioprocess Development, Process Characterisation, Clinical Manufacturing (Microbial & Mammalian)
Research Informatics: Bioinformatics, integrative analysis, target dossiers, systems modeling, cheminformatics and AI
* Human Pharmacology Unit
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Discovery Services
Target Identification and Target Identification and Validation Validation
Hit Hit Identification Identification
Hit to Lead Hit to Lead
Target ID Target ID 1. Pathway analysis 1. Pathway analysis 2. Omics 2. Omics 3. Knock-in / knock-out 3. Knock-in / knock-out
In vitro assays: In vitro assays: 1. Biochemical 1. Biochemical 2. Orthogonal 2. Orthogonal 3. HTS Formats 3. HTS Formats
Hypotheses: Hypotheses: 1. Therapeutic 1. Therapeutic 2. Mechanistic 2. Mechanistic 3. Target Engagement 3. Target Engagement
HTS/DEL/Fragments/Virtual HTS/DEL/Fragments/Virtual Screening Screening 1. Library Design/Synthesis/ 1. Library Design/Synthesis/ Maintenance Maintenance 2. Hit validation, Resynthesis 2. Hit validation, Resynthesis 3. Series Qualification, 3. Series Qualification, Prioritization Prioritization
In vitro assays: In vitro assays: 1. Cellular Mechanistic 1. Cellular Mechanistic 2. Cellular Functional 2. Cellular Functional 3. Relevant Off-Target(s) 3. Relevant Off-Target(s) In vitro ADME assays: In vitro ADME assays: 1. Protein Binding 1. Protein Binding 2. Metabolism 2. Metabolism 3. CYP Inhib/Induct 3. CYP Inhib/Induct Research Operating Plan: Research Operating Plan: 1. Assay Priority 1. Assay Priority 2. Key Studies 2. Key Studies 3. Critical Path 3. Critical Path
IND / Ph1 DE IND / Ph1 DE
Ph1-HV or Patient (as appropriate): 1. Exposure 2. PD
Lead Optimization Lead Optimization
In vivo assays/studies: In vivo assays/studies: 1. PK (R/NR) 1. PK (R/NR) 2. PD, PK/PD 2. PD, PK/PD 3. Efficacy 3. Efficacy
Hypothesis: Hypothesis: 1. Patient Selection 1. Patient Selection
IND Enabling IND Enabling
Later Translational: 1. PK/PD/Efficacy 2. Refinement of patient selection hypothesis 3. Biomarkers
Human Dose Projection 1. h-PK Projection 2. PK/PD/Efficacy data 3. Safety/Tox data
Optimization: 1. Biochem/Cell Potency 2. Selectivity 3. Phys/Chem Properties 4. In Vitro/Vivo Tool Cmpds
Optimization: 1. Biochem/Cell Potency 2. Selectivity 3. Phys/Chem Properties 4. In Vitro/Vivo Tool Cmpds
Optimization: Optimization: 1. Tgt Optimal h-Profile 1. Tgt Optimal h-Profile 2. Candidate Selection 2. Candidate Selection 3. Backup Strategy 3. Backup Strategy
Drug Substance (DS, aka API) 1. Route Scouting (define specs) 2. Scale Up 3. Manufacture/Stability
In vitro Safety: In vitro Safety: 1. hERG 1. hERG 2. 2.
Ion Channels
Ion Channels
Tox-Suitable Tox-Suitable Formulation Formulation (maximize exposure) (maximize exposure)
DRF Tox (R/NR) DRF Tox (R/NR) Bioanalysis Bioanalysis
GLP Tox (R/NR) GLP Bioanalysis
Iterative Data Analysis and Interpretation, Models, Hypothesis Generation
Biology Biology Translation Translation
Chemistry Chemistry Development Development Formulation Formulation Clinical Clinical Development Development
Safety Safety Assessment Assessment
Informatics Informatics
Drug Product (DP) 1. Pre-Formulation Studies 2. Ph1 Suitable Formulation 3. Prototype/Stability 4. Manufacture/Stability 5. IND, BA/BE, DDI and Phase 1 clinical trials 6. GCP Bioanalysis
MTD or RP2D MTD or RP2D (as appropriate) (as appropriate)
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Development Services and Manufacturing Services
Developability Assessment
Development phase
Clinical Phase
Phase I
Phase II
Phase III
Registration/process validation
Commercial batches
Safety Assessment
Early PK, MTD/DRF studies, Exploratory Tox
• IND enabling GLP Tox studies: Ames, Chromosomal aberration, Micronucleus tests, Pivotal repeat dose (Rodent and Non- rodent)
• NDA enabling studies: Sub- chronic and
Repro-tox studies
• Local Tolerance
• Safety Pharmacology: CNS, Respiratory, CV Telemetry, hERG
study
Chemical Dev and Manuf.
• Route scouting • Process safety evaluation • Scalability
Formulation Dev and Manuf.
• Pre-formulation • Salt polymorph screening • Excipient compatibility
Analytical Services
Methods for Pre-formulation and Bio-analytical
• Fit to purpose Process dev • Material supply • Impurity identification • Enable and scale • Tox material delivery
• Solid Oral & Injectable
dosage forms
• Enabling formulation
technologies
• Methods for Intermediate,
Final DS, DP
• Forced degradation studies • Solid state characterisation
• Process dev , robustness and safety study • Unit operation studies • Impurity synthesis & characterization • DS clinical batch supply
Clinical Supplies for all phases • FIH formulation for Phase 1/2A • Final dosage form for Phase 2B/3
and onwards
Chronic and Carcinogenicity study
• Process DOE, QBD and scale
up studies
• Process Risk assessment • FMEA analysis • Registration and process validation batches manuf.
Commercial batches manuf. and packaging
• Phase appropriate method validation for DS & DP (microbial methods) • Specifications for DS & DP • In process and Finished product analysis • Final batch release with COA • Reference standard , Impurities, Isolation and characterisation
Robustness of Analytical methods and full validation as per ICH
Analysis of commercial batches
Stability Services
Selection of suitable container closure system & packaging
• Development stability studies
• ICH stability for all phases • Shelf life Estimation • Re-test extension
Stability study of registration/ process validation batch
Stability study of commercial batches
Clinical Development
• Human Pharmacology Unit (Phase I/BE studies) • Clinical Trial Services – full solution provider for conducting trials in India • Central Lab Services including regulated bioanalytical lab • Clinical data management, biostatistics and medical writing
Regulatory Support
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Biologics Development and Manufacturing services
Developability Assessment
Development phase
Clinical Phase
Phase I
Phase II
Phase III
Registration/process validation
Commercial batches
Process & analytical development
• Cell line development /
selection
• Process screening • Process characterization
• Clone to GMP • Upstream process Optimization • Viral clearance studies
• Process DOE, robustness and safety study • Unit operation studies • Impurity synthesis & characterization • DS clinical batch supply (non-GMP clinical & GMP) • CMC & regulatory support • Method development & testing
• Process risk assessment • FMEA analysis • Tech transfer package
• Commercial batches • manufacturing and
packaging
• technical support
Scale-up & QC/QA
• Methods for pre-formulation
and bio-analytical
• Methods for intermediate,
final DS, DP
• Critical to quality parameter
identification
• Forced degradation studies
• Clinical phase process development & supply • Specifications for DS & DP • In process and finished product analysis • Viral clearance studies • Packaging and ICH storage stability and shelf-life estimation
• 3-Lot testing & equipment
validation
• Cleaning validation studies • Pre-audit preparation
• QC/QA analysis & release of commercial product w/ COA
• Stability analysis • Root cause Investigation &
CAPA management
Commercial production & supply chain
• Early screening of asset capability and capacity
• Capacity utilization
planning
• Late phase clinical supply using manufacturing scale
equipment
• Supplier identification • Waste management plan • CAPEX requirement identification
• Supplier qualification • Pre-audit preparation • Protocol documentation • Master batch record
development
• Operation training
• Sales and operations
planning
• Delivery / logistics • Customer & regulatory
audits
• Process improvement & Regulatory filing updates
Regulatory Support
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Led by a globally experienced management team
Jonathan Hunt Managing Director and Chief Executive officer
Sibaji Biswas Chief Financial Officer
Dr. Mahesh Bhalgat Chief Operating Officer
Ashu Tandon Chief Commercial Officer
Sanjeev Sukumaran Chief Human Resources Officer
Experience
AstraZeneca
Vodafone, Hutchison Telecomm
Sanofi, Amgen, Monsanto
IQVIA Accenture
Thomson Reuters
Experience
Alok Mehrotra Chief Quality Officer
Reckitt Benckiser, PepsiCo, Godrej, DRL
Caroline Hempstead Head of Corporate Affairs
AstraZeneca
Dr. Kenneth Barr SVP Discovery Services
FORMA Merck
Alex Del Priore SVP Manufacturing
Johnson Matthey
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Advised by Our Board of Directors
Kiran Mazumdar Shaw Non-Executive Chairperson
Chairperson of Biocon Limited, ~45 years of experience in the field of biotechnology
Jonathan Hunt Managing Director and Chief Executive officer
~30 years of experience in the global biopharmaceuticals industry
Dr. Carl Dcicco Independent Director
Professor Catherine Rosenberg Non-Executive Director
Vinita Bali Independent Director
Chief Scientific Officer in Foghorn Therapeutics
Professor in electrical and computer engineering at the University of Waterloo, Canada
Chief Executive Officer & MD of Britannia Industries from 2005 to 2014
Experience
Paul Blackburn Independent Director
Experience
40 years+ experience in the field of finance
Sharmila Abhay Karve Independent Director
Retired as audit partner from Price Waterhouse
Dr Vijay Kuchroo Independent Director
Founded five biotech companies including CoStim Pharmaceuticals and Tempero Pharmaceuticals
Kush Parmar Independent Director
Managing Partner at 5AM Ventures, a life sciences venture capital firm
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Committed to sustainability
Safety is at the heart of everything we do
Committed to environmental protection
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Accredited with ISO 45001:2018 for its Occupational Health and Safety (OH&S) measures
Risk assessments are the integral part of our operation - a proactive approach in incident prevention
21,761 man hrs of regular safety training under Kavach, our flagship safety program considerable improvement across several safety metrics
13.7 million manhours without Lost Time Incident (LTI) on rolling 12-month basis for FY22
Increased incident reporting
Reduction of incidents
Improved risk control measures
Improved general safety perception
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Accredited with ISO 14001:2015 for its effective Environment Management System (EMS)
34,000 KL of water conserved through effective rainwater harvesting as well as recycling of used water; up 61% from FY21
92% of the total waste generated are recycled in an environment-friendly manner for FY22
3-R’s Operations constantly monitored to identify opportunities to reduce, reuse, and recycle waste
67,000 tons of carbon dioxide emissions reduced in FY22,up 26% from FY21
74 Mn KWH of electricity usage through Green energy sources; up 18% from FY21
85% of Energy consumption is through green energy sources in FY22
Refer to the CSR link on our website to know about our corporate social responsibility pursuits on healthcare, education, environment, rural development
All figures are as on March 31, 2022, unless otherwise specified
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We have consistently received industry recognition for our scientific capability and best practices
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Bio-Excellence Award 2018: At Bengaluru Tech Summit, Bengaluru Best Bioprocessing Excellence Award 2018 - At 5th Biologics Manufacturing Asia, Singapore • Healthcare Company of the Year 2018: At the 7th Annual VC Circle Awards 2018, Mumbai • HR Excellence Award 2018 'For Best Talent
Management Strategy’: World HRD Congress, Mumbai
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CMO Leadership Award Winner 2020 - under Categories: Capabilities, Compatibility, Expertise and Service Bioprocessing Excellence Awards 2020 in the category 'Bioprocessing Excellence in South Asia—Viral Clearance and Safety Testing’ • Great Place to Work Certified™ Company • (ASSOCHAM) CSR & NGO Awards 2020 for our contribution to COVID-19 relief work in Karnataka.
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CMO Leadership Awards 2022 Received 6 awards for all categories, including Capabilities, Compatibility, Expertise, Quality, Reliability and Service CMO Leadership Award Champion 2022 Additional Recognition received in CMO Leadership Awards 2022 for top performance in all categories 'Most Preferred Workplaces of 2022' by Team Marksmen Daily in association with India Today Recognized for its holistic reorientation of the business landscape in the context of the pandemic, and for creating a collaborative and empowering culture for its employees.
2017 2018
2019
2020
2021
2022
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•
•
Ranked as one of the 25 fastest growing companies in India by Outlook Business CMO Leadership Awards 2019 - Presented by Life Science Leader Magazine FICCI CSR Award for Environmental Sustainability -At the 17th Edition of the awards in New Delhi Safe Workplace Champion Award - At the 8th Manufacturing Supply Chain Summit and Awards Best Leadership Development Program for Middle Management Award - At the 6th Global Training and Development Leadership Awards India Pharma Award 2019 - For “Excellence in Contract Research and Manufacturing Services” at CPhI & P-MEC India Expo. • Utthama Suraksha Puraskar 2019 - (Pharma and Chemical
•
•
Manufacturing Category) by National Safety Council of India (NSCI). Leadership Awards
• Dream Companies to Work Award at the 29th Edition of the World HRD
Congress Awards.
• Asian Leadership Award for Excellence in Branding and Marketing in the
•
•
•
•
Contract Research Development and Manufacturing category CRISIL awards Syngene Top score among Indian Pharma: for Environment Safety Governance (ESG) Syngene ranked #69 in Fortune India magazine's list of 'Top 100 Indian wealth creators 2021’ India Pharma Awards 2021 for Operational Excellence: Manufacturing organized by Informa Markets, India Best Governed Company in the Listed Segment: Medium Category at the 21st National Awards for Excellence in Corporate Governance by The Institute of Company Secretaries of India (ICSI)
• Most Innovative New Learning Programme at the L&D Vision & Innovation
Award organized by Transformance Forums
• Mahatma Award 2021 Under Health & Wellbeing Category •
Best Corporate Foundation Award at the World CSR Congress
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Proactively managing risks through robust risk management framework
Syngene has a risk management framework to identify, monitor, report and manage risk across the business. Every risk owner monitors and manages risks relevant to their area of responsibility.
Executive Committee (EC)
Board of Directors(BOD)
•
Identify and mitigate risk in respective business areas
•
Sign off on Enterprise Risk Framework – Annually
• Review and approve the key
updates to enterprise risks and deep dive into few risk areas every quarter
•
Sign off on Enterprise Risk Framework – Annually
• Ensure that appropriate measures are in place to mitigate the risks • Review key updates to enterprise risks and deep dive into few risk areas every quarter
• Provide strategic direction on
mitigation of risks
• Ensure principal risks are properly
managed
Risk Owner
Risk Committee
Risk identification
Risk assessment
Risk analysis and rating
Risk mitigation
Monitoring and reporting
Refer Annual report for complete risk profile and risk mitigation strategy
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4
Financials
Q1 financial highlights
Particulars
Q1 FY23
Q1 FY22
YoY Change
Q4 FY22
QoQ change
Revenue from Operations
Other Income
Total Revenue
Material and Power Costs
Employee Costs
Foreign exchange (gain)/loss, net
Other Expenses
EBITDA
EBITDA Margin
Depreciation and finance cost
PBT
Tax on above
PAT
PAT Margin
6,445
155
6,600
1,791
1,861
34
1,031
1,883
5,945
123
6,068
2,082
1,711
(154)
656
1,773
28.5%
29.2%
955
928
189
739
11%
826
947
174
773
13%
8%
26%
9%
(14%)
9%
(122%)
57%
6%
16%
(2%)
9%
(4%)
7,581
147
7,728
2,325
1,736
(91)
1,108
2,650
34.3%
859
1,791
313
1,478
19%
(15%)
6%
(15%)
(23%)
7%
(137%)
(7%)
(29%)
11%
(48%)
(40%)
(50%)
All figures in Rs. Mn unless otherwise specified
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FY22 financial highlights
Particulars
Revenue from operations (excl export incentives)
Other Income
Total Revenue
Material and power costs
Employee costs
Foreign exchange (gain)/loss, net
Other Expenses
EBITDA
EBITDA Margin (%)
Depreciation, Interest and tax
Profit After Tax before exceptional item
PAT Margin (%)
Exceptional Items, net of taxes (3)
Profit After Tax after exceptional item
FY22
26,042
528
26,570
8,138
7,181
(548)
3,310
8,489
32%
4,278
4,211
16%
(253)
3,958
FY21
21,843
646
22,489
5,839
6,602
(171)
2,855
7,364
33%
3,543
3,821
17%
228
4,049
YoY Change
19%
(18%)
18%
39%
9%
220%
16%
15%
21%
10%
(2%)
Balance Sheet Highlights
As on 31st March 2022
Shareholders’ funds
Net Fixed assets
Other net assets (1)
Net cash/(debt) (2)
Total Use of Funds
32,976
27,392
(1,741)
7,325
32,976
(1) Other Assets calculated as (Inventories + Trade Receivables + Unbilled Revenues + Advance Tax + FX premium less ( Trade payables + Others current liabilities) at the end of the year (2) Net cash / (Net debt) calculated as the Cash & cash equivalents (Cash and bank balances + Current investments+ Fixed deposits) less Total debt (Short-term borrowings + Long-term borrowings) at the end of the year (3) Exceptional item in FY22 is in relation to reversal of services export incentive related to FY20 in line with Government notification. In FY21 relates to receipt from insurance claim
All figures in Rs. Mn unless otherwise specified
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34
5
Shareholding and Share Information
Biocon Group and Syngene
Biocon Limited, founded in 1978, is an innovation-led global biopharmaceuticals company
Syngene, a subsidiary of Biocon Limited, was established in 1993 as India’s first Contract Research Organization - Company has 25 years plus of unparalleled experience in novel molecule discovery, development and manufacturing services
Biocon Biologics, another subsidiary of Biocon Limited, consolidates the development, manufacturing and commercialization operations of Biocon’s biosimilars business
Integrated services: • Discovery • Development • Manufacturing
small/large molecules
• • •
•
Product Based Biosimilars Formulations and Compounds Alternative Therapeutic Drugs
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36
Shareholding and Share Information
Syngene’s Shareholding Pattern*
Syngene’s Share Information*
1%
29%
Promoter & Promoter Group
NSE Ticker
BSE Ticker
Market Cap (Rs. Mn)
Public
% free-float
ESOP Trust
Free-float market cap (Rs. Mn)
70%
Share Outstanding (Mn)
3M ADTV ^ (Shares)
3M ADTV ^ (Rs. Mn)
SYNGENE
539268
2,22,342
29%
64,326
401
4,14,768
248
*As on 30th June 2022
^ NSE Average Daily Traded Volume / Value
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37
For more details
Visit our website www.syngeneintl.com
https://twitter.com/SyngeneIntl
https://www.linkedin.com/company/syngene-international-limited
https://www.facebook.com/syngeneintl/
https://www.youtube.com/channel/UCIC4WSA1k5YAC531gMLkbIQ
IR Contact: Krishnan G + 91 806 891 9807 investor@syngeneintl.com
Media Contact: Shotorupa Ghosh +91 8450977080 Shotorupa.ghosh@syngeneintl.com
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38
Thank you
© 2022 Syngene International Limited, Bengaluru, India. All Rights Reserved. Syngene believes the information in this document is accurate as of its publication date; such information is subject to change without notice. Syngene acknowledges the proprietary rights of other companies to the trademarks, product names and such other intellectual property rights mentioned in this document. Except as expressly permitted, neither this documentation nor any part of it may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, printing, photocopying, recording or otherwise, without the prior permission of Syngene International Limited and/ or any named intellectual property rights holders under this document.
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