Wockhardt Limited has informed the Exchange about Investor Presentation
WOCK/SEC/SE/2022-23/068
21th February, 2023
BSE Limited Corporate Relations Department P J Towers, Dalal Street Mumbai - 400 001
National Stock Exchange of India Limited Listing Department Exchange Plaza Bandra Kurla Complex, Bandra (E), Mumbai - 400 051
Scrip Code: 532300
NSE Symbol – WOCKPHARMA
Dear Sir/Madam,
Subject: Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 – Investor Conference recording and Investor Presentation
Pursuant to Regulation 30 of SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015 and further to our communication dated February 14, 2023, we enclose herewith the Investor Presentation discussed during Investor Call held today i.e. Tuesday, February 21, 2023 at 16:00 hrs IST through VC. The Investor Presentation is also available on the website of the Company at below link.
https://statutory.wockhardt.com/stock_exchange_disclosures.htm
Dr. Habil Khorakiwala (Chairman) and Dr. Murtaza Khorakiwala (Managing Director) participated in the Investor Call. The audio - video recording of the Investor Call has been uploaded on the Company’s website and the same can be accessed at below link:
https://statutory.wockhardt.com/stock_exchange_disclosures.htm
You are requested to kindly take it on record.
Thanking you, Yours Sincerely,
Debashis Dey Company Secretary
Encl.: A/a.
Project Liberty Opportunity to invest in US pharma business
Investor’s Presentation February 2023
Safe Harbor Statement
The Presentation is to provide the general background information about Wockhardt Limited’s (the “ Company’s ”) activities as at the date of
the Presentation. The information contained herein is for general information purposes only and based on estimates and should not be
considered as a recommendation that any investor should subscribe / purchase the company shares. The Company 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 contained herein. This presentation may include certain “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. Important factors that could cause actual results to differ materially from our expectations
include, amongst others general economic and business conditions in India, ability to successfully implement our strategy, our research and
development efforts, 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 pharmaceuticals
industries, increasing competition, changes in political conditions in India or any other country and changes in the foreign exchange control
regulations in India. Neither the company, nor its directors and any of the affiliates or employee have any obligation to update or otherwise
revise any forward-looking statements. The readers may use their own judgment and are advised to make their own calculations before
deciding on any matter based on the information given herein. No part of this presentation may be reproduced, quoted or circulated without
prior written approval from Wockhardt Limited.
| Page 2
Snapshot of Wockhardt : 9M FY23
Revenues : INR 1,973 Cr.
11 manufacturing facilities across world
EBITDA: INR 86 Cr.
Long term external D/E Ratio 0.16x*
2 R&D centres one each in India, UK, USA
~ 520 scientists with >80 PhD’s, Drug Discovery team > 150 associates1
>20% of the 5,400 global associates based outside India1
International business ~ 75%
3,214 patents filed; 793 patents granted
* Excludes Promoter loans
Strictly confidential | Page 3
Global Footprint : Significant Regulated market presence
Global Footprint
Capability – across different segments
► Generics ► Branded ► OTC ► Hospital
► 5,000 employees ► Across US, EU, India &
Emerging Markets
► Solids, ► Injectables, ► Biotechnology
► Liquids ► Nasal Sprays ► Complex technologies
Direct operations
Through Partners
► Antibiotics Drug Discovery ► Biotechnology ► Pharma Generics
United Kingdom
Emerging Markets
India
Ireland
United States of America
►Leading Indian
generic company in Retail & Hospital segments
►Presence in
Latin America, CIS, Africa, Asia and MENA
►1st Indian
Company to launch NCE ►800 field force
►Amongst TOP 5
Generic Cos
►Largest Generic Cos in hospital products
Share Share
32%32%
20%20%
25%25%
6%6%
►Generics ►Hospital segment ►Pediatrics
13%13%
| Page 4
Key highlights
11
22
33
44
Business performance
Restructuring of US Business
Agreement with Serum for vaccine manufacturing in UK
Novel Antibiotics
| Page 5
22
US Business Restructuring
US Cost Improvements Site transfer from in-house Chicago site to CMOs
In-house Manufacturing In-house Manufacturing
Post re-structuring Post re-structuring
$
Canada (CMO)
$ USA CMO
$
GCC (CMO)
$$$
MGP Chicago
Restructuring Business
Shut down of manufacturing facility at Morton Grove
Few products with high margin manufactured by 3rd party
Continue to maintain sales with ~ 40% gross margins
US$ 25 Mn fixed cost US$ 25 Mn fixed cost
US$ 6 Mn variable cost US$ 6 Mn variable cost
Annual savings of ~US$ 12 Mn
| Page 6
33
Agreement with Serum for vaccine manufacturing at UK Facility
• Joint venture of 51:49 in favor of Wockhardt
• Received £ 10 million as contribution for reserving capacity- 150 million doses
across 15 years
• Serum has identified two vaccines
Wockhardt plans to manufacture post regulatory approvals and Wockhardt plans to manufacture post regulatory approvals and exhibit batches in next 8 - 12 months exhibit batches in next 8 - 12 months
| Page 7
44
Novel Antibiotics
20 20 years years
#1#1
Committed to Novel Antibiotics research Committed to Novel Antibiotics research
Probably only company to have comprehensive end to end drug Probably only company to have comprehensive end to end drug discovery programs in Antibiotics discovery programs in Antibiotics
66
Programs granted QIDP status by US FDA denoting unmet Programs granted QIDP status by US FDA denoting unmet needs; faster trials, quicker approvals by US FDA needs; faster trials, quicker approvals by US FDA
| Page 8
44
5
O
WCK 4873
WCK 4282
WCK 5222
Nurturing aspiration for global leadership in antibiotic space
NCEs launched or in advanced-clinical development
2
2
Launched
Pipeline
2
1
RECAR BRIO
1
AVYCAZ
ZERBAXA
NUZYRA
ZOLIFLO DACIN
DURLOB ACTAM
1
1
1
BAXDELA
TANIBOR BACTAM
FETROJA
GEPOTID ACIN
VABO- MERE
Wockhardt
Pfizer
Merck
Paratek
Entasis
VenatoRx
Shionogi
GSK
Melinta
Shrinking pipeline - A result of scientific challenge and missing discovery talent base
| Page 9
Novel Antibiotics- WCK 4873
Licensing Licensing in China in China
India India Phase III Phase III trials trials
• Signed licensing deal with Jemincare, China for development and • Signed licensing deal with Jemincare, China for development and
commercialization in Greater China commercialization in Greater China
• Received first milestone from Jemincare • Received first milestone from Jemincare
• Phase 3 clinical trial concluding by September 2023 • Phase 3 clinical trial concluding by September 2023
• Marketing in India in 2024 post DCGI approval • Marketing in India in 2024 post DCGI approval
| Page 10
Novel Antibiotics- Emrok/Emrok-O
India India
• Already marketed • Already marketed
Emerging Emerging Markets Markets
• Expect approvals in 8 emerging markets in next 6-9 months • Expect approvals in 8 emerging markets in next 6-9 months
| Page 11
WCK 5222- Flagship novel antibiotic
Increase in Increase in potential potential
• 2022 CDC report highlights rise in Anti-microbial Resistance during COVID-19 • Heightened vigilance reveals the rising level of threat
WCK 5222 78%
WCK 5222 32%
WCK 5222 WCK 6777 35%
https://www.cdc.gov/drugre sistance/pdf/covid19- impact-report-508.pdf
WCK 4282 32%
Emrok / Emrok O 13%
I
D V O C
g n i r u d s e t a r
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
e c n a t s s e r
i
i
c i t o b i t n a n
i
e s R
i
MDR Pseudomonas
CR Acinetobacter
CR Enterobacterales
ESBL Enterobacterales
MR S. aureus
MDR: Multi-drug resistant; CR: Carbapenem resistant; MR: Methicillin resistant
| Page 12
WCK 5222- Flagship novel antibiotic
Global Global Phase III Phase III progress progress
Saving Saving lives lives
• Global Phase III clinical trial initiated in August 2022 and expected to • Global Phase III clinical trial initiated in August 2022 and expected to
complete in next 15-18 months. complete in next 15-18 months.
• Expect to market product in USA, Europe, China & India in 2025 • Expect to market product in USA, Europe, China & India in 2025
• 3 critical patients; all other antibiotics options exhausted including recent
global innovation product
• Post DCGI approval for compassionate use, successfully cured and
discharged on completion of treatment with WCK 5222
| Page 13
Compassionate use of WCK 5222
Recently under DCGI Permission 3 patients in India with life-threatening infection received WCK 5222 on compassionate ground since available antibiotics were not efficacious
Patient 1 (Sep. 2022) 50 y, female admitted in Medanta, Hospital Lucknow, treated by Dr. Dilip Dubey
Patient 2 (Nov-Dec. 2022)
Patient 3 (under treatment)
11 y, boy admitted in Global
18 y, male admitted in AIG
Hospital, Chennai, treated by Hospital, Chennai, treated by Dr. Ponni/Subramanian
Hospital, Hyderabad, treated by Hospital, Hyderabad, treated by Dr. Balasaheb
Post-abdominal surgery sepsis
Post bone-marrow-transplant
Necrotic fasciitis after
Infection of XDR Pseudomonas, resistant to ceftazidime/avibactam
Though susceptible to colistin, even 4 weeks of therapy didn’t improve the clinical condition
febrile neutropenia
chemotherapy for acute leukemia
Infection of XDR E. coli, resistant
to ceftazidime/avibactam
Infection of XDR Pseudomonas, resistant to ceftazidime/avibactam
Last-line therapies were not
Last-line therapies were not
efficacious
efficacious
10 days of therapy with WCK 5222
rescued the patient paving for discharge in stable condition
2 weeks of WCK 5222 eradicated the pathogen; discharged in stable condition
10 days of WCK 5222 eradicated the pathogen; being treated for cytopenia
| Page 14
WCK 6777
Funding Funding
• By National Institute of Health, USA
Stage Stage
• In Phase I US development • In Phase I US development
| Page 15
Financial / Business Highlights
| Page 16
Deleveraging: Reducing Long term external Debt
3,218
2,070
1,149
FY17
2,982
1,998
984
FY18
2,487
1,509
978
FY19
Long term external Debt position (INR Cr.)
2,085
1,348
737
FY20
1,287
743
544
FY21
India External Debt
International External Debt
812
251 561
608 253 355
FY22
December 2022
0.96
0.93
Long term external Debt to Equity
0.83
0.68
0.34
0.19
0.18
0.17
0.16
FY17
FY18
FY19
FY20
FY21
FY22
Q1, FY23
Q2, FY23
Q3, FY23
| Page 17
Promoters commitment
INR 709 INR 709 Cr. Cr.
Quasi- equity
Promoter Loans (INR Cr.)
~INR 500 ~INR 500 Cr. Cr.
Rights Issue - Conversion of Promoter Debt into Equity
469
518
709
208
March 2020 March 2021 March 2022 December
2022
Promoter is fully committed to support the Company
| Page 18
Key Metrics Performance – Sales Revenues
Sales excl. Vaccines (INR Cr.)
578
673
699
Q1 FY23
Q2 FY23
Q3 FY23
| Page 19
Key Metrics Performance – Steady improvement in EBITDA
EBITDA excl. Vaccines (INR Cr.)
39
59
-27
Q1 FY23
Q2 FY23
Q3 FY23
| Page 20
Cash Flow Movement
Q3 FY23 (INR Cr.)
Positive OCF
Deleveraging
Promoter commitment
Investments
Opening Balance
Cash from Ops
Total
Debt Repayment & Interest
Promoter Infusion
Total Funds
R&D
Closing Balance
| Page 21
UK Business
Revenue Performance
Key Highlights:
• Comprehensive, FDA-approved manufacturing facility
for sterile injectables.
• Present in key therapies across Cardiac, Pain &
Analgesics, Vitamins, Respiratory & Diabetes,
Oncology, Anti-Infectives
• Collaboration with UK Government and Astrazeneca to
manufacture COVID-19 Vaccines.
220
223
208
Accelerated new filings
Q3 FY22
Q2 FY23
Q3 FY23
6
9
8
12
12
FY20
FY21
FY22
FY23
FY24e
All values in INR Cr.
| Page 22
India Business
Revenue Performance
Key Highlights:
• Therapeutic focus across Diabetes , Nephro, Anti-Infectives, Pain / Analgesics, Vitamins & Nutrients, Neuro / CNS and others.
175
158
150
• One of the few Indian Companies who are into Manufacturing
of Insulin, Glargine & OSD in Diabetes
Q3 FY22
Q2 FY23
Q3 FY23
• Robust Distribution Network – CNF (20+)/ Stockiest /
Distributors (~ 2000)
• Only Indian Pharma company to Launch novel NCE in India
(Brand name – Emrok & Emrok O)
452
483
• On 9 months basis, Diabetes Biosimilar business grew >20%
• Launched Sitagliptin under brand name “Sitawok”
9M FY22
9M FY23
All values in INR Cr.
| Page 23
Emerging Markets Business
Revenue Performance
9M FY23
Africa
Asia
CIS
LatAm
MENA
3% 5%
4%
27%
31%
117
117
New Markets + Others
30%
148
Key Highlights:
Q1 FY23
Q2 FY23
Q3 FY23
• De-risked model of Operations - partnerships & relationship
building.
• Differential & end to end Business model from Research to Manufacturing to Distribution with backward integration of API manufacturing.
• Strong Presence in Diabetes Segment – Insulin, Glargine :
both Vials & Cartridges
• Upcoming Focus – Presence in New Markets / New
Segments with high growth potential
All values in INR Cr.
| Page 24
Growth Drivers
| Page 25
Wockhardt 2.0 - Strategic pillars which will drive growth
► Affordable, Complex Generics, Sterile Injectable
► Focus on differentiated
products, NDDS, Complex technologies
► Global Gx Market ~ $
200 Bn
Pharma
Vaccines
(Currently Covid-19)
► Drug Substance and Product Integrated Manufacturing
► 10 Bn doses for EM
Biologics
► Focus on Diabetes
Biosimilar
► Diabetes injectable
Portfolio
► Insulin Glargine, EPO, Patented devices
► Diabetes biologics market ~$ 50 Bn
New Drug Discovery
► Focus on global reach
Antibiotics drug discovery
► Comprehensive end to end drug discovery
► 6 QIDP approval by
USFDA with 4 drug in pipeline
| Page 26
Short-term and Mid-term growth drivers
Short Term growth drivers (1-2 years)
1
2
3
Diabetes Biosimilars for Emerging markets
Collaboration for Vaccines with Serum Institute
Focus on improving profitability and Cash flow
Mid term growth drivers (2-3 years)
1
Novel drug discovery
| Page 27
1
Growth Drivers – Diabetes Biosimilar (EMs)
Focus on Human Insulin and Insulin Glargine
Registered in emerging markets
> US$ 1.5 Billion market
> 25 markets
Increased market share
New market launches
Limited competition
6-7 players
Sustainable competitive advantage
Manufacturing infrastructure ready
API + Formulation
Cost competitive
Integrated end to end capabilities
Development to marketing
Own “IP”
| Page 28
1
Competitive advantage by providing end to end solutions in Diabetes Biosimilars
R&D
► Focus on Insulin analogues, GLP-1 analogues
Manufacturing
► Pilot to large scale capabilities for API &
Integrated Capabilities
formulations
Regulatory
► Registrations in 25+ countries1
Devices
► Customised precision patented delivery devices
Patented delivery devices (pen)
Vials
Cartridges
Enhanced competitive posture to help penetrate markets
Pipeline of Insulin Analogs including Insulin Aspart
| Page 29
2
Collaboration for Vaccines
Contract with UK Govt. for fill-finish supply for AstraZeneca/University of Oxford Covid-19 vaccine
Serum Institute
Supplied >60% of all Covid-19 Vaccines in UK
14% of AstraZeneca Europe
> 90 COVAX countries
With Prince (now King) Charles and ex-Prime Minister Boris Johnson
Dedicated manufacturing in UK for up to 150 Million doses per annum ----------------------------------------------- Multi-vaccines arrangement including for COVID-19 ----------------------------------------------- Long-term profit-sharing arrangement
| Page 30
3
Antibiotic-resistant bacteria [6 super bugs] – silent killer
COVID-19 killed 5 million people in two years1
COVID-19
Super bugs
In 2019, six super bugs killed 5 million people2
0
500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 4,000,000 4,500,000 5,000,000
Deaths
Strong evidence for inadequacy of current antibiotics
1.Nature, Vol 601, 20 January 2022; 2.Lancet. 2022 Feb 12;399(10325):629-655
| Page 31
3
Novel Antibiotics pipeline against Resistant Organisms
WCK 5222
WCK 4282
WCK 4873
Emrok / Emrok O
WCK 6777
Phase
Phase III (Global)
Phase III (Global)
Phase III (EM) Filing 2023
Launched in India EM Filing underway
Phase I
Potential Indication
cUTI HABP / VABP
cUTI HABP / VABP
CABP / RTI
ABSSSI
cUTI
Partnered in China
Partnered in Russia
Funding by NIH
Positioning
Destination therapy for XDR Gram-ve Acinetobacter and Pseudomonas
Empiric-use; Carbapenem- sparing Gram-ve
Macrolide-resistant Respiratory Pathogens, Quinolone-Sparing
MDR Gram+ve Anti-MRSA
Out-patient therapy for MDR Gram -ve
Current Market Size for target markets1
US$ 9.2 Bn At current generics price
US$ 5.6 Bn At current generics price
~US$ 700 Mn At current generics price
~US$ 3.4 Bn At current generics price
Source: IQVIA MAT MARCH 2021
| Page 32
Our journey ahead – target key milestones
FY 2024
FY 2025
Insulin Aspart Launch in India
WCK 4873 Approved and launch in India
WCK 5222 Filing and approval in US
US Business Profitable
PBT Positive
Insulin Glargine Approval in MENA, LATAM & Other markets
Insulin Aspart India: Filing in 2024
Emrok/Emrok O Approval in Emerging Markets WCK 4873 Phase III completion and filing in India WCK 5222 Completion of global Ph III study conduct
Serum Vaccines Initiation of manufacturing in UK US Business In-house manufacturing shifted to third party India 14 new launches targeting Diabetes & Nephro Fund raising For R&D & Capex
Estimated timelines
| Page 33
Life wins !
Impacting Life
Saving Life
Affordability
Stakeholders
| Page 34