Torrent Pharmaceuticals Limited has informed the Exchange about Investor Presentation
27th September, 2022
The Dy. General Manager (Listing Dept.) BSE Limited, Corporate Relationship Dept., 1st Floor, New Trading Ring, P. J. Towers, Dalal Street, Fort, Mumbai - 400 001 (BSE Scrip Code: 500420)
The Manager – Listing Dept., National Stock Exchange of India Ltd., Exchange Plaza, 5th Floor, Plot No. C/1, G. Block, Bandra - Kurla Complex, Bandra (E), Mumbai – 400 051 (NSE Scrip Code: TORNTPHARM)
Dear Sir,
Sub.: Presentation to analysts on acquisition of Curatio Health Care (I) Private Limited
The presentation on acquisition of Curatio Health Care (I) Private Limited to be made to Investors / Analyst is enclosed for your records.
Thanking you,
Yours sincerely,
For TORRENT PHARMACEUTICALS LIMITED
CHINTAN M. TRIVEDI COMPANY SECRETARY
Encl: As above
___________________________________________________________________________________ TORRENT PHARMACEUTICALS LIMITED CIN: L24230GJ1972PLC002126 Reg.Office : Torrent House, Off Ashram Road, Ahmedabad- 380 009, India. Phone: +91 79 26599000, Fax: +91 79 26582100, www.torrentpharma.com, Email : InvestorServices@TorrentPharma.com
Building Leadership in a High Growth Therapy Area
27th September 2022
1
Curatio At A Glance
Key Brands
Brands
17+ Year of operation
95% Dermatology Sales
~Rs 224* Cr FY’22 Sales
50+ Total Brands
13 Brands leader in the covered market
~Rs 275 Cr FY23E Sales
~600 MRs Sales Force
900+ Distributors
Online sales channel
* 222 cr India Business
Acquisition Positions Torrent as Second largest player in Cosmetic Dermatology
Torrent pharma to acquire 100% of Curatio India Pvt Ltd. having operations in India, Nepal, Srilanka & Philippines
84% contribution from Cosmetic dermatology; non regulated market
Portfolio of 50+ brands in Dermatology therapy
Include leading brands like Tedibar, Atogla, Spoo, Permite, Perlice etc. Top 10 brands contribute 75% to the portfolio
Overlap limited to ~10%
Supply extension of current manufacturing arrangements for 3 Years
79% contribution from Chronic/sub chronic portfolio (IPM 54%)
7% portfolio under NLEM (IPM 16%)
Potential access to OTx market through India’s leading baby product brand Tedibar; Spoo & Atogla
Growth Opportunity: Derma is a High Growth Therapy Area
Sales 222 Cr
171 Cr
131 Cr
2019-20
2021-22
H1
• As per FY’22 Curatio has registered sales of
222 Cr with 25% Gr
• Derma is the key therapy for Curatio contributing 95% in it’s overall sales
• 84% of the derma therapy sales contributed
by high growth cosmetic dermatology
Therapy
% 5
t s e R
% 5 9
a m r e D
Cosmo Derma
Medical Derma
% 4 8
% 6 1
% 8 6
% 2 3
CURATIO
IPM
H1 on estimated basis
*Source: AIOCD MAT Aug’22
Tedibar (Rs. 76 cr sales FY22, YTD August growth 15%)
670 L
120 L
25 L
<15Y Age Group
Atopic Dermatitis Incidence
Existing Market Penetration
80% potential market is not yet served
Condition addressed • Dryness and irritation associated with atopic dermatitis • Maintains the pH balance of 5.5 which can get elevated to as
high as 6.5 in atopic dermatitis
Key Differentiators •
India’s leading low pH cleansing bar –made from synthetic detergent to maintain pH
• High Gross Contribution product with significant headroom for
•
increase Long Term Usage - Typically start using as a toddler and may continue
Growth Opportunity: Cosmetic Dermatology is the Key Driver of Derma Growth
CAGR : 10%
IPM
174k Cr
65K Cr
CAGR : 13%
Derma
GP
Specialist
Dermat
GP
Specialist
Dermat
3%
39%
58%
11.5K Cr
3.3K Cr
40%
30%
30%
2012
2022
2012
2022
• CAGR of cosmetic dermatology is 1.6 times than IPM
• Derma TA value grew by 3.5 times whereas
cosmetic dermatology grew by 4.5 times vs IPM 2.7 times
Cosmetic Dermatology
CAGR : 16%
3.6 K Cr
•
Expanding Torrent presence in high growth area
0.8 K Cr
• Cosmetic dermatology is more specialist focus business;
62% dermatologist contribution in total Rx. Matching with Torrent current DNA
2012
2022
GP
Specialist
Dermat
15%
62%
23%
*Source: AIOCD MAT Aug’22
Overview: Curatio Brands can Expand the Covered Market
Torrent
4286Cr
Curatio (India)*
222 Cr
Torrent + Curatio
4508 Cr
§ Curatio India has reported sales of 222 Cr in FY22. FY23 E growth is 25%
§ Top 10 brands contributing 74% of the total sales
§ Top 3 brands contribute more than 50% of the total sales
Tedibar
Atogla
Spoo
B4 Nappi
• Mkt Size: 1477 Cr | CAGR 2Y: 11% • Rank 2nd
• Mkt Size: 1300 Cr| CAGR 2Y: 11% • Rank 5th
• Mkt Size: 174 Cr | CAGR 2Y: 10% • Rank 1st
• Mkt Size: 1466 Cr | CAGR 2Y: 11% • Rank 3rd
* FY22 India Business Internal figures
Rank: AIOCD MAT Aug’22; Market size & Growth: Bain & company estimate
Top 5 brands contribute ~60% to the portfolio
Tedibar
95
76
25%
Atogla
32
27
20%
Permite/Perlice
17
14
21%
21-22
22-23 E
21-22
22-23 E
21-22
22-23 E
Spoo
11%
14
13
Clinmiskin
10
8
19%
Top 5 Brands
167
137
22%
21-22
22-23 E
21-22
22-23 E
21-22
22-23 E
21-22: Internal Sales; 22-23 E: Estimated sales based on YTD’Aug
Key Brands of Curatio part of high growth market with high market share
11%
<10% MS%
22%
% R G A C t k M % 0 1 >
% R G A C t k M % 0 1 <
52%
>10% MS%
15%
% contribution to Sales
Top Brands on A High Growth Path
Portfolio
Revenue Cont.% FY 22
Key Products
3 YR CAGR
Pedia Products
~60%
Tedibar : Low Ph bathing bar for Atopic Dermatitis Atogla Lotion & Cream : Emollients for Atopic Dermatitis Spoo : Rx Driven shampoo for cradle cap
Acne/Face care
Hair/Scalp care
~20%
~12%
Tracnil : Therapy resistant acne, excessive hair due to PCOS Acnemoist : Dryness of skin caused by acne medications Clinmiskin : Antibiotics used for treatment of acne Fash : Purifying face wash for sensitive skin
Perlice : Lice infestation treatment Proanagen : Hair thinning /Shedding face by women Noskurf : Anti dandruff long contact lotion
17%
15%
9%
Source: Company information, data as per company’s sales data
Torrent enters into the Top league in Dermatology
RANK
CORPORATE
Leadership
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
18
21
DERMA
GSK
GLENMARK
SUN*
HEGDE & HEGDE
ABBOTT*
DR. REDDYS
MANKIND
ZYDUS*
WIN-MEDICARE
TORRENT+CURATIO
MACLEODS
INTAS
CIPLA
USV
GALDERMA
CURATIO
TORRENT
• Torrent will be ranked 10th in Derma therapy • Amongst top 5 Rx players amongst Dermatologist
Leveraging Curatio’s equity
• Concept selling through strong Medico Marketing • Cosmetology driven portfolio in sync with TPL derma
portfolio
Leveraging Torrent’s equity
• Existing national prescriber equity • Emphasis on In Clinic effectiveness
E-commerce business model
• Learnings from Curatio to be leveraged for TPL derma portfolio
Source: AIOCD MAT June’22
Enhances Torrent’s presence in high growth high value TA’s of the market
Therapy Rank (Val)
Therapy
Torrent
---
1
3
9
5
4
7
8
10
2
IPM
CARDIAC
GI
CNS
VMN
AD (wo Ins)
PAIN
DERMA
GYNAE
A.I
8
2
4
4
4
9
8
21
17
21
Torrent + Curatio 7
Torrent Strength √ √ √
2
4
4
4
9
8
10
17
21
√ √ √ √
√ √ √ √
√ √ √ √
√ √ √ √
√ √ √
√ √ √
√ √ √
√ √
√
Torrent will strengthen its position to enter top 5 corporates amongst dermatologist
Source: AIOCD MAT Aug’22
Thank You