Zydus Lifesciences Limited has informed the Exchange about Investor Presentation
Code: 532321
Code: Zyduslife
September 17, 2023
BSE Limited 1st Floor, P J Towers, Dalal Street, Mumbai-400001
National Stock Exchange of India Limited Exchange Plaza, 5th Floor, Plot No. C/1, G Block, Bandra-Kurla Complex, Bandra (East), Mumbai-400051
Re.:
Investor Presentation for Investor Conference
Ref.: Our earlier letter dated September 13, 2023
Dear Madam / Sir,
In continuation to our earlier letter dated September 13, 2023, please find attached the presentation to be made during the investors’ meet from September 18, 2023 to September 20, 2023.
Please bring the aforesaid news to the notice of the members of the exchange and the investors’ at large.
Thanking you,
Yours faithfully, For, ZYDUS LIFESCIENCES LIMITED
DHAVAL N. SONI COMPANY SECRETARY
Encl.: As above
Zydus Lifesciences Limited Investor Presentation
September, 2023
1
Disclaimer and Safe Harbor Statement
•
•
•
THIS PRESENTATION (PRESENTATION) IS NOT AN OFFER TO SELL ANY SECURITIES OR A SOLICITATION TO BUY ANY SECURITIES OF ZYDUS LIFESCIENCES 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.
2
Zydus at a Glance
A Leading Lifesciences Player
With a Global Footprint
Aptly Supported by
US$ 2.15 bn Revenues1 in FY23
EM & EU 9%
API 3%
Alliances 1%
FY23 Sales Rs. 48,525 mn
US 46%
US$ 154 mn R&D spend1 in FY23 (7.2% of revenues)
Having Leadership in key markets
#5 in Indian Pharma Market3
#1 in 5 out of 6 wellness brands5
#5 in the US Gx market (by prescriptions4)
US$ 480 mn EBITDA1 in FY23 (22.4% margin)
US$ 7.9 bn Market cap2
India Geography 41%
Formulations 26% Consumer Wellness 15%
36 Manufacturing facilities
7 R&D Centers
24000+ Zydans
1. At an exchange rate of Rs.80.4/ US$ 2. As on 15th September, 2023 at an exchange rate of Rs. 83.1/ US$
3. AWACS MAT June 2023 4. IQVIA MAT June 2023 TRx
5. Nielsen MAT June 2023
3
Innovation Updates
Innovation at the Core: Moving up the value curve
Biosimilars
Orphan Disease & Specialty Portfolio through 505(b)(2)
NCEs
Indian pioneers in Biosimilars with Portfolio of 12 approved biosimilars incl. the World’s first Antibody Drug Conjugate (ADC) biosimilar of TDM-1
A portfolio of 9 R&D programs at various stages of development
Saroglitazar - World’s first approved therapy for NASH Desidustat – India’s first oral therapy for CKD Anemia
Vaccines 2nd in the world to develop Typhoid Conjugate vaccine 2nd Indian Company to develop and launch MMR vaccine
Generics
Comprehensive portfolio to serve different markets across the globe
Global innovative biopharmaceutical company
NBEs Targeting rare & orphan diseases and difficult to treat cancers
Novel Antibody drug conjugates
Developing novel ADCs for difficult to treat cancers
Our vision is to improve accessibility and affordability of novel therapeutics, biologicals, and antibody drug conjugates for the patients across the globe
5
US Generics Pipeline: Evolving with differentiation
Transforming the portfolio towards next phase of growth
From
To
Focus
• Volume-centric
• Value centric, differentiated products
Strategy
• Generics
• Generics, Complex generics, CGT,
Drug devices
Business Model
•
In-house development
•
In-house development and partnerships
Diversification
• Dosage forms with internal capabilities
• Venture into new areas like
Inhalation through partnerships
Products under development for filing over next 5 years
Product Type
No. of Products
Drug Device
Long Acting Injections
NCE-1/ Other FTF
Para III/ IV
Open Opportunity
6
3
34
63
44
150 Products with addressable market size of ~ US$ 80 bn
Leveraging the licensing strategy for technically complex products with large opportunity size
Market Exclusivity
Low Competition
Complex Technology
Drug Device Combination
Niche therapy area
NCE-1, First-to-file
CGT/ First Generic
Products focused in oncology, Novel polymorph, API sameness / characterization
High entry barrier, Long Acting Products
Rare diseases
India Portfolio: Multi-pronged approach to fuel growth
Pipeline of First-in-India, Day-1 launches and next generation Drug Delivery platforms will be one of the key growth drivers
Multiple initiatives being undertaken towards ensuring access and affordability to patients and meet their healthcare needs
India Innovation Portfolio in Near – Mid Term
No. of Products
Focused TA
FTI Opportunities
14
Day-1 Launches
Next Gen. Devices
Differentiated Gx / LCM
18
11
21
Addressable Market
~ Rs. 60 bn
Respiratory, Gynecology Cardio-Metabolic, Gastro- Intestinal
Respiratory, Gynecology, Cardio-Metabolic
Respiratory, Gynecology, Pain Management
Respiratory, Gynecology, Cardio-Metabolic, Gastro- Intestinal, Oncology, Pain Management, Derma
• Working closely with Health-care Professionals (HCPs) to
better understand evolving medical practices
•
Evaluating multiple in-licensing opportunities with global players to meet unmet healthcare needs
• Developing novel solutions keeping in mind the patient
convenience
• Developing novel packaging solutions for better customer
experience
•
Increase Awareness to drive greater penetration of diseases by supporting diagnosis, particularly for unmet medical needs (like NASH, NAFLD)
7
NCEs and NBEs: Highlights and Focus Therapy Areas
Novel Approved Products
First NCE Approved/Launched In India Bilypsa® for treating NAFLD and NASH Lipaglyn® for treating Hypertriglyceridemia, Type 2 Diabetes and Diabetic Dyslipidaemia
• World’s First novel cocktail RmAbs • Novel rabies mAb cocktail containing docaravimab and miromavimab
OxemiaTM first oral alternative to injectable ESAs in India launched in March 2022
NBEs/ ADCs Pipeline
NCEs Pipeline
Autoimmune disease
Nephrology
Hematology
Infectious Disease
Project
Target
Indication
Drug Disc.
Lead Optim.
Pre- clinical
IND
Phase I
Phase II
Phase III
NDA
Launch
6 NBEs
2 ADCs
Oncology
~400 Dedicated Scientists for NCE
5 NCEs in clinical development
10+ NCEs/NBEs/ADCs in Pipeline
Saroglitazar
PPAR- α:γ agonist
PBC & NASH (for US)
Desidustat
HIF-PHI inh.
CIA (for US)
ZYIL 1
NLRP3 inh.
CAPS
Orphan
ZYBK2
HLA-DRB1
Arthritis
ZY19489
Anti- Malaria (In collaboration with MMV)
PIIb NASH
PIIb/III PBC
PIb
PIb
PIIa
PII
8
NCE – Saroglitazar: Targeting to address unmet medical needs in PBC and NASH indications globally
Primary Biliary Cholangitis (PBC)
Saroglitazar Magnesium
• The molecule holds an Orphan Drug Designation (ODD) from both the USFDA
and the EMA and Fast-Track Designation from the USFDA
PBC / NASH Global Market Opportunity
• Global pivotal Phase II(b)/ III clinical trials viz. EPIC-IIITM under progress.
Market size by 2029 PBC: US$ 1.7 bn NASH: US$ 27.2 bn
US would contribute majority of WW sales
NASH will now be Metabolic dysfunction-associated steatohepatitis (MASH)
NAFLD will now be metabolic dysfunction-associated steatotic liver disease (MASLD)
Announced by multinational liver societies leaders ALEH, AASLD, EASL*
*The Latin American Association for the Study of the Liver (ALEH) American Association for the Study of Liver Diseases (AASLD) European Association for the Study of the Liver (EASL)
• The trials would study the effects of a molecule relative to placebo over 52
weeks across 100 sites.
Non-Alcoholic Steatohepatitis (NASH)
• Following the successful launch in India for multiple indications, the molecule is
undergoing global clinical trials.
• Global pivotal Phase II(b) clinical trials viz. EVIDENCES-XTM under progress.
• The protocol encompassed 76 weeks paired biopsy study in the US and Argentina
to evaluate resolution of NASH and F2/F3 Fibrosis.
Source:, Organovo CP_2023 Zydus annual report FY2022-23,AASLD 2023
9
NCE – Desidustat: First novel oral alternative to injectable ESAs approved in India for anemia in CKD patients
~US$ 6.6 bn
~17%
~132 Mn
CKD anemia market expected to increase by 2029
Prevalence of CKD patients in INDIA
People are estimated to be living with CKD in CHINA
• Completed Phase I(b) clinical
trials for Chemotherapy Induced Anemia (CIA) in cancer patients.
• Provided relief injections so far.
to over 28000 patients from
• Desidustat is being explored for multiple
indications including CKD anemia.
•
Initiated Phase IV clinical trials viz. DREAM-CKD in the India to generate real world evidence of molecule in patients with CKD induced anemia.
• The study would enroll 1004 patients (502 dialysis
dependent and 502 dialysis independent).
• Licensee
is investigating the drug in Greater China for the potential treatment of anemia associated with CKD.
• Phase III bridging trials are going on in China for the treatment of anemia caused by non-dialysis chronic kidney disease.
Patients explored in CTs
Publications & Research articles
Source : CKD anemia market global presswire 2021 internal data , clinical trial.gov
10
Biosimilars: Among largest players in India; targeting increased reach in Emerging markets
Ranked no. 1 in India
INDIA
In Oncology space, driven by strong biosimilar portfolio
In Breast cancer franchise, with the largest biosimilar portfolio
In Nephrology space, driven by strong EPO brand presence
12 biosimilars launched
Oncology – 4
Trastuzumab, Bevacizumab, Trastuzumab Emtansine, Peg-asparagase
Auto-immune – 1
Adalimumab
Bone Health – 1
Teriparatide
Fertility – 1
r-FSH
Onco. Supportive – 2
G-CSF, Peg-GCSF
Others – 3
EPO, IFNα-2b, PEG-IFN
9 Biosimilars in Pipeline
Oncology – 6
Respiratory – 1
Autoimmune – 1
Opthal – 1
Zydus has global blockbuster biosimilars in portfolio worth ~US$ 86 bn in 2027
Source: Team analysis; Internal Data, markets and markets, Cortellis
EMERGING MARKETS
World’s first biosimilar Antibody Drug Conjugate of Trastuzumab Emtansine
Leading brand in Targeted therapy (mAb) market, among top 10 brands in India
Launched world’s first Adalimumab biosimilar, market leader in Ankylosing spondylitis therapy
Operating in ~23 countries with more than 20 partners who are regional market leaders
Leadership position in markets such as Myanmar, Indonesia, Sri Lanka, East African countries
Adalimumab and Peg-GCSF (DS) approved by regulatory bodies like Russia MOH
11
Vaccines: An emerging player with end-to-end development expertise
20+
Vaccine products in portfolio
Vaccine innovation comes from two R&D centers focused on developing newer vaccines…
Multiple types
Of offerings
7
Manufacturing (5) and R&D (2) Facilities
1000+
…dedicated scientists and workforce
Vaccine Technology Centre (VTC) Ahmedabad, India
Etna Biotech Catania, Italy
•
•
Vaccine R&D center for process and analytical development of different vaccines- viral, bacterial and recombinant.
Dedicated QC unit along with manufacturing, formulation, filling and lyophilization sections for various types of vaccines.
•
•
R&D centre in Catania- Italy. Competent in vaccines and immuno- therapeutics research for infectious and other chronic illnesses.
Primarily focuses on discovery research.
12
Vaccines: Comprehensive portfolio with platform diversity
1st
Indian company to have indigenously developed H1N1 vaccine
2nd
In the world to develop Typhoid conjugate vaccine
2nd
Indian company to indigenously develop and launch MMR vaccine
1st
Company globally with an approved pDNA vaccine for human use
✓ WHO PQ-ed
Rabies vaccine ✓ Submitted TCV for WHO-PQ
Live Attenuated
Live viral (Cell culture) Measles, MR, MMR Varicella
Live viral (Chicken Embryo Fibroblast) Mumps
Inactivated
Sub-unit
Inactivated viral (Egg based) Swine flu (H1N1) Seasonal influenza Rabies
Recombinant (Yeast) Hepatitis B
Polysaccharide Typhoid Vi
Polysaccharide conjugate Typhoid (Vi-TT)
Inactivate Toxins
Toxoid Tetanus Diphtheria
Others
pDNA Vaccine ZyCoV-D
Combination vaccine DTwP DTwP-Hib-Hep B Td
Combination Live Viral vaccine MMRV (Phase I clinical)
Inactivated viral (Cell culture) Hepatitis A (Phase I Clinical)
Recombinant (Prokaryotic) Hepatitis E (Phase II clinical)
Platforms Virosomes Measles Vectored backbone
Virus Like Particles (VLP) Human papillomavirus
Polysaccharide conjugate Bivalent Typhoid
d e v o r p p A
t n e m p o l e v e d r e d n U
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Zydus’ innovation engine is fueled by centers of excellence
NCE / NBE Research
Steady Investment in R&D
US$ mn
R&D Cost
% of Revenues
7.2
5 3 1
155 135 115 95 75
7.7
5 5 1
7.8
6.9
1 5 1
0 4 1
4 5 1
7.2
10 8 6 4 2 0
FY19
FY20
FY21
FY22
FY23
1400+ Scientific Pool
Formulation Development
Biotech Research
Etna Biotech
API Research
Vaccines Research
14
Business Updates
India Formulations: Poised to scale up in progressive therapies
Sustained growth over the years
Strong presence in progressive therapy areas
India Formulations Sales (Rs. mn)
Therapy-wise Break-up of Zydus’ revenues1
35390
37141
40429
48125
49111
9% CAGR (FY19-FY23)
Others 16%
Cardio- Diabeto 18%
12270
9% YoY Gr in Q1 FY24
FY19
FY20
FY21
FY22
FY23
Q1 FY24
Consistent improvement in field force productivity
Sales per medical representative (Rs. mn)
8.2
6.7
5.4
5.7
FY17
FY19
FY21
FY23
1. AWACS MAT June 2023
Progressive TAs
• 50% of total revenues vs.
48% last year
• Grew 13% vs. total
portfolio growth of 9%.
Anti- infectives 13%
Pain 8%
Derma 5%
GI 8%
Progressive TAs
Respi 11%
Gynae 6%
Onco 9%
Hepato 2%
Nephro 4%
Overall performance in IPM
#5
Rank in IPM1
#12
Brands among top 300 IPM brands1
3.9%
Market share in IPM1
#12
48%
Share of chronic, up 4% over last 2 years1
#25
Brands with over Rs. 1000 mn sales1
Brands with sales between Rs. 500-1000 mn1
16
India Formulations: Rich brand portfolio to drive growth
Increasing contribution of innovation portfolio
Growth Strategies
• Largest brand of Zydus, 47th largest in IPM1 • Consistent increase in ranking over the years • 37% increase in patient base in FY23
• Significant increase in prescribers and volumes since launch • Secondary sales of Rs. 690 mn2
• Launched in FY22. First biosimilar of an ADC drug TDM-1 • Rapid volume expansion driven by affordability • > 6000 patients benefited since launch
• Launched in FY22. First novel oral alternative to ESA. • Provided relief to >28000 patients from injections so far
Focus on various brand building initiatives
Expand the presence in existing geographies and entering the new geographies
Other Key brands driving the growth
Enhance the footprint in hospital sales and modern trade and e-commerce business
Launch of new products across key therapies and entering into new therapy areas
Leveraging the innovation pipeline of New Chemical Entities (NCEs), biologics, vaccines and generics portfolio
1.. AWACS Apr-Jun 2023 Qtr. 2. AWACS MAT June 2023
17
Zydus Wellness: Leverage brand strength & distribution to scale up
Leveraging the brand equity to grow despite challenges
Consumer Wellness Sales (Rs. mn)
17379
18409
22338
19788
29% CAGR (FY19-FY23)
8074
6936
0.3% YoY Gr in Q1 FY24
FY19
FY20
FY21
FY22
FY23
Q1 FY24
5 out of 6 brands are market leaders1
Strengthen “Energy” credential with new launches • Category leading brand with 99% plus brand recall • ~ 60% market share1 in the category
Strengthening the core through re-launch of the brand • Focused on scientifically proven claims on memory and
concentration and enhanced chocolate taste
•
1 lakh stores added since acquisition
A Leader getting stronger • Market leading brand with heritage of over 65 years • Strengthening leadership with volume market share from 29.6% in 2018 to 37.7%1
Replacing sugar in all forms of Consumptions • India’s first low calorie sugar substitute with over 95% share1 • Potential to be amongst top 3 global brands
Growing Faster than Market • Growing faster than overall facial cleansing category • Ranked #1 in scrub and peel-off sub-categories1
Building ‘Dairy + Spread’ portfolio • Leveraged milk sourcing to expand dairy segment with
Doodhshakti Ghee in retail and institutional channels and pro-biotic butter
1. Nielsen MAT June 2023 report
18
Zydus Wellness: Strategic initiatives to drive growth
Accelerate growth of core brands through volume expansion, recruitment of new customers and differentiated offerings through innovation
Enhance distribution infrastructure and direct coverage; invest in capabilities to converge on- line and off line trade and engage shoppers at multiple touchpoints
Digitize the whole value chain and build capability around predictive analysis
Enhance international presence by focusing on SAARC, MEA and SEA regions; targeting 8-10% of revenues in next 4-5 years
Proactively looking for bolt-on acquisitions in focused markets
19
US formulations: Deep and differentiated pipeline with strong quality focus backed by robust execution to sustain growth
Strong platform with robust growth potential
Continued investment to build value-centric portfolio
US Formulations Sales (Rs. mn)
62795
62514
63505
58138
74451
$ 899 mn
$ 882 mn
$ 856 mn
$ 780 mn
$ 926 mn
4% CAGR (FY19-FY23)
57% YoY Gr in Q1 FY24
24541
$ 298 mn
ANDA filings and approvals (FY19 to FY23)
74
63
29
30
28
35
22
26
28
22
FY19
FY20
FY21
FY22
FY23
Q1 FY24
FY19
FY20
FY21
FY22
FY23
Comprehensive product portfolio across dosage forms
Rank in the US Gx market in terms of prescriptions1
Number of products currently being distributed
4 %
Rank in ~25% of product families in term of prescriptions1
#5
189
#1
Amongst Top 3
in ~66% of product families in term of prescriptions1
Filings
Approvals
IQVIA MAT June 2023 TRx
1. 2. As on 30th June, 2023. 382 approvals as on 30th June, 2023 includes 26 tentative
approvals. 62 ANDAs were pending final approval as on 30th June, 2023
20
Filings
Approvals
Cumulative ANDA filings & approvals2
444
382
US formulations: Continued execution in the generics space coupled with specialty franchise to drive the growth
An evolving player in the US specialty space
Growth Strategies
In-housed developed portfolio
Molecules in pipeline incl. 1 in orphan disease space
NDAs filed so far through 505(b)(2) route; 2 in the area of metabolic disorders and 1 in pain management space
Tentative approval received so far
CNS
Neuromuscular Disorder
Pain Management
Opportunistic Products
9
3
1
Focused Therapies
Acquired portfolio
2
Molecules acquired so far viz. NULIBRYTM and CUTX101
• Approved by the USFDA for Molybdenum Cofactor Deficiency (MoCD) Type A, an ultra-rare disease • Orphan Drug Designation (ODD) status by the USFDA • First commercial shipment made in FY23 • Received marketing authorization in EU as well; Only
treatment available in the EU for MoCD Type A
CUTX 101
• A copper histidinate product for Menkes disease • NDA submission under progress • Orphan Drug Designation (ODD) and Fast-Track
designation by the USFDA
Continue to file 30-35 ANDAs annually and launch new products to address erosion in base portfolio and grow the business
Focus on limited competition/ differentiated/ FTF products to gain competitive advantage (high cashflows)
Expanding presence in specialty space through in-house development efforts as well as inorganic route
Over medium to long term, become a credible branded pharmaceutical player by launching own innovative products
21
EM & Europe formulations: Expanding the presence across key geographies
Well-diversified growth through the years
Growth Strategies
EM & Europe Formulations Sales (Rs. mn)
14444
15794
11% CAGR (FY19-FY23)
10580
10710
12442
4893
30% YoY Gr in Q1 FY24
FY19
FY20
FY21
FY22
FY23
Q1 FY24
Emerging Markets
Europe
• •
•
•
•
•
A meaningful branded generics player Presence in key markets of Asia, Africa and Latin America
Focused therapy areas: CVS, Diabetology, CNS and Pain Mgt.
Focus on overall disease management through KOL engagement rather than brand management
Direct presence in the generics markets of France and Spain Servicing other markets through Business to Business (BTB)
route
Expand the presence in select emerging market countries through local partnerships
Expand the offerings in emerging market countries by leveraging the global portfolio
Scale-up the biosimilars business in emerging markets
In Europe, strengthen the retail presence in France and Spain through portfolio expansion
Deepen the presence in Europe by engaging with large wholesalers
Scale-up B2B segment in Europe and enter new markets through partnerships
22
JVs and Alliances: Value creation through win-win alliances
Zydus Takeda Healthcare Pvt. Ltd.
• A 50:50 JV with capabilities to manufacture a range of APIs and intermediates • Regulatory compliant manufacturing site confirming to the GMP standards • Strategic site for Takeda; the JV supplies exclusively to Takeda for its generic portfolio • Focus on expansion of volumes and efficiency enhancement through multiple levers
Zydus Hospira Oncology Pvt. Ltd.
• A 50:50 JV between Zydus and Hospira Inc., USA (now part of Pfizer group) to manufacture
oncology injectables and supply to the JV partners Portfolio of 30 products; Annual capacity to manufacture upto 7 mn vials
• • On the business development front, working towards identification of new customers;
Identified two customers so far and successfully completed the facility audit from them
Bayer Zydus Pharma Pvt. Ltd.
• A 75:25 marketing joint venture for India market between Bayer (South East Asia) Pte. Ltd.
(wholly owned subsidiary of Bayer AG, Germany) and Zydus Leverages Bayer’s expertise in successfully commercializing novel products and Zydus’ strong marketing and sales expertise as well as excellent distribution network Focused therapies: cardiology, women’s health, oncology, haematology and ophthalmology
•
•
23
Manufacturing, Supply Chain and Digitalization Initiatives
Well supported by a wide network of regulatory compliant manufacturing facilities
Ahmedabad
Human Formulations Multiple dosages (Moraiya) Oral Solids (SEZ I) Oral Solids (SEZ II) Transdermal (SEZ) Injectables (SEZ) Topicals (Changodar) Lyophilised Inj. (Vatva) Injectables (Sanand) Biologics Bulk I Bulk II Fill and Finish Vaccines Flu and Hepatitis Vaccine MMR Vaccine Bacterial Vaccine Rabies Vaccine ZyCov-D Vaccine API Oncology API Consumer Wellness Nutralite Table Spread Animal Health Formulations Oral Solids and Topicals (SEZ)
Daman
Formulations
Unit I
Unit II
India
Aligarh – Consumer Wellness
Baddi - OSD Form
Sikkim
Formulations
Oral Solids (Unit I)
Oral Solids, Topicals, Aerosols (Unit II)
Consumer Wellness
Cosmetic, Glucose Powder (Unit I)
Sugar Substitute (Unit II)
Brazil
Myanmar
Zydus Nikkho (Formulations)
Alidac Myanmar (Formulations)
Ambarnath (API)
Goa (Formulations)
Ankleshwar
API
Unit I
Unit II
Ekalbara – API
Dabhasa- API
Baroda – Inj. Formulations
Total facilities – 36 (Formulations – 17, APIs – 6, Vaccines – 5, Biologics – 3, Consumer – 4, Animal Health – 1)
Total facilities inspected by USFDA – 14 (Formulations – 8, APIs – 4, Biologics – 1, Animal Health - 1)
25
Agile and integrated supply chain aptly supported by strong execution capabilities continues to serve different markets globally
50+ Countries we cater to
4500+ SKUs being supplied across markets
2500+ FG (Finished Goods) batches demand/ month
140+ new launches per year
10+ Dosage Forms
Key Strengths
Robust Performance
Vertically Integrated
on Key Molecules
Agile Production Planning
Supplier Selection & Risk Mitigation
End to end Supply Chain Digitization
•
Improved service levels to customers
• Reliability of supplies; Partner of choice
• Agility and responsiveness; Capability to encash the opportunities like Exclusivities, Day 1 launches etc.
Resilience
• Optimum cost to serve
• Minimum instances of Failure to Supply Penalties
26
Digitalization: Leveraging the technological advancements to unlock the efficiency and deliver greater value to all the stakeholders (1/2)
Improved engagement with the prescribers and create better brand visibility and re-call through the use of analytics tools
Field Force Management: • • Better understanding and service to the customers through various customer centric developments • Better brand communication basis the feedback from prescribers
India Formulations Business
Brand Management: • Digital content creation and content delivery capabilities to create system based, cogent and consistent content which is customer
centric i.e. easy to consume and deliver
• Establishing the platform to shape and drive coherent articulation of core value proposition across brands in a compelling,
systematic and strategic manner
Knowledge Dissemination: • Connecting healthcare professionals with SMEs to provide updated scientific information on various therapeutic approaches
Manufacturing Operations
Adoption of various advanced technological tools aimed at well-informed decision-making through real-time data generation and in
turn, ensure reliable and responsive operations. Key ones are:
• Upgradation of machines to make them digitally communicative •
Implemented Laboratory Information Management System (LIMS) in labs to connect all the systems to software and ensure data integrity
• Installed documentum software to ensure that every person has access to the latest version of SOPs • Use of Dynamic Workforce Automation Tool to assign right talent to the right machine and product •
In a new facility in Ahmedabad SEZ (known as SEZ II), the products will be manufactured without any human intervention and
achieve the highest standards of quality and automation.
27
Digitalization: Leveraging the technological advancements to unlock the efficiency and deliver greater value to all the stakeholders (2/2)
Generic Development - Project IRIS
• Real-time performance monitoring of projects through dashboards and digitization of process workflows
This will enable data driven decision making and optimize resource allocation.
• Better portfolio visibility to provide structure across activities and assure individual ownership and accountability with defined SLAs • Better visibility on entire product life cycle including resource allocation, across all cross-functional teams This will aid in identifying potential bottlenecks and opportunities to streamline budget and timelines.
Supply Chain Management - Project PACE
SAP S/4 HANA - Project BLAZE
• Detailed insights about demand patterns, production capacities and material shortages through advanced data analytics • • Long-range planning modules help to optimize sourcing, production, storage and distribution by proactively anticipating the
Improved forecasts and reduced stock-outs resulting in enhanced customer satisfaction
disruptions and in turn, create an agile supply chain.
• Greenfield implementation of SAP S/4 HANA across the enterprise. Expects to become operational from FY24. • Key benefits envisaged are:
• Productivity improvement through enhanced speed of execution • Harmonization and simplification of practices across the functions • Use of analytics to aid decision-making
28
Financials
Key Financial Metrics (1/2)
Total Revenues (Rs. mn)
GC (Rs. mn) and Gross Margin %
1,31,656
1,42,531
1,44,035
1,51,099
1,72,374
64.2%
65.5%
66.7%
63.3%
63.4%
84,492
93,331
96,014
95,647
1,09,273
4 Year CAGR: 7.0%
FY19
FY20
FY21
FY22
FY23
FY19
FY20
FY21
FY22
FY23
EBITDA (Rs. mn) and EBITDA Margin %
Total R&D (Rs. mn) and % to Revenues
22.7%
19.5%
23.5%
22.1%
22.4%
7.2%
7.7%
7.8%
6.9%
29,835
27,834
33,871
33,407
38,599
10,974
11,196
10,406
9,422
7.2%
12,363
4 Year CAGR: 6.7%
4 Year CAGR: 6.6%
4 Year CAGR: 7.0%
FY19
FY20
FY21
FY22
FY23
FY19
FY20
FY21
FY22
FY23
30
Key Financial Metrics (2/2)
Adjusted Net Profit (Rs. mn)
Organic Capex (Rs. mn)
20,581
22,988
26,608
18,569
14,028
4 Year CAGR: 9.4%
9,371
7,998
7,634
11,218
9,579
FY19
FY20
FY21
FY22
FY23
FY19
FY20
FY21
FY22
FY23
Net Debt/ EBITDA
Return on Invested Capital (ROIC) *
2.36
2.42
1.03
15.2%
14.7%
14.0%
16.5%
11.2%
FY19
FY20
FY21
(0.02)
FY22
(0.14)
FY23
* ROIC is calculated as PBIT ex exceptional and other income / Total capital employed less cash and cash equivalent.
FY19
FY20
FY21
FY22
FY23
31
ESG and CSR Updates
ESG Initiatives: Following a holistic philosophy of sustainability
Overview of initiative undertaken in FY23 to turn ESG principles into actions
Environment
•
12% reduction in GHG emissions over FY22
• Renewable energy consumption up 53% over FY22
• 8% reduction in energy intensity (GJ/Mn) over FY22
• Solar power generation at mfg. sites; plans to
procure and use solar-wind hybrid power in FY24
•
Increased use of bio fuel/ hybrid fuel
• 9% reduction in water intensity (KL/ Rs. Mn) over FY22
•
18 sites: water conservation initiatives under progress
• Adoption of Zero Liquid Discharge approach to recycle
Water Management
and re-use of water
• Use of water efficient technologies
• Reduction in fresh intake of water
• 24% increase in waste disposal by Co-processing;
an eco-friendly solution
• Compliance with all applicable regulations
• Focus on reduction in waste generation
Waste Management
• Creation of an inclusive work place which promotes
gender diversity and equal opportunities for all
• Building a positive work culture, promoting skill
People Initiatives
development and a healthy work-life balance
•
Implementation of employee well-being measures
• Dedicated EHS cell at each location to oversee
implementation of EHS policy.
• Zero fatal incidents during FY23; significant
EHS Matters
reduction in reported incidents
• Reduction in Lost Time Injury Frequency Rate
(LTIFR) by 51% over FY22
• Gender diversity in Board up from 12% in FY22 to
20% in FY23; onboarded a female director
•
Independent directors in Board up from 40% in FY22
Governance
to 60% in FY23; onboarded 2 independent directors
• Zero violations of regulatory requirements in FY23
33
CSR Initiatives: Making meaningful difference to the local communities
Zydus Medical College and Hospital (ZMCH), Dahod - Overview
Health infrastructure improvement by ZMCH, Dahod
• Dahod, one of the most backward districts with inadequate health
infrastructure necessitated the healthcare intervention.
•
•
•
•
The Audit Report (General and Social Sector) for FY15 observed serious inadequacies in the health infrastructure.
ZMCH established as a self-financed brownfield medical college and hospital under a Public Private Partnership (PPP) model with the Government of Gujarat and Zydus Foundation in 2017.
ZMCH is aligned with National Health Policy, 2017 which emphasizes on:
Strengthening health systems
• • Building health infrastructure in accordance with Indian
Public Health Standards and
• Reducing out-of-pocket expenditure.
The hospital has significantly improved the healthcare infrastructure. Free treatment eliminates out-of-pocket expenses.
Sr. No.
Facilities
As per Audit Report (FY15)
Number of beds
ICU and Casualty Beds
High-end monitors
Ventilators
X-ray Machines
150
8
Nil
Nil
Current Situation
1034
118 (Including NICU, PICU and SICU beds)
190
55
Available but without obtaining license from authorities
Digital X-ray machines available
Ultrasound Sonography
Available but managed by single radiologist
Round the clock availability
CT Scan
Blood Bank
Specialist Doctors
Medical Doctors
Nursing Staff
Other Paramedical Staff
Oxygen Plants
Not available
Not available
15
8
25
6
-
Available
Available
197
71
434
Paramedics - 206, Security class IV - 416
4 of 1510 LPM
34
1
2
3
4
5
6
7
8
9
10
11
12
13
ESG and CSR Updates Awards and Accolades
Notable Achievements
IHW Council Award for Patient Centricity in Non Communicable diseases for “NASH24*7” initiative
Economic Times Award for Excellence in Marketing for the marketing campaign - “NASHhhhh – The Voice of Liver Health”
AWACS Pharmarack Best Brand of the Year Award for Lipaglyn®
Pharma Leader of the Year at ET Healthworld India Pharma world Awards 2022
Excellence In CSR at ET Healthworld India Pharma world Awards 2022
Among Top 40 India’s Best WorkplacesTM in Health & Wellness for 2022
1 Gold Award and 2 Silver Awards for for Best Design for Corporate Identity, Brand Logo and Re-Branding from India Design Excellence Awards
12 INDIASTAR national awards for excellence in packaging design, innovation and technology
CII Silver Award Winner for Zero Raw Material Wastage- Yield Improvement in Tab-X
36
Well diversified Board at the helm
Pankaj R. Patel
Chairman
Over 45 years of experience in Indian Pharma industry with both, research and techno‐commercial expertise.
Dr. Sharvil P. Patel
Managing Director
Over 2 decades of experience in Pharma industry having specialization in chemical and pharmaceutical sciences and a doctorate in breast cancer
Ganesh N. Nayak
Executive Director
Associated with the group since over last 4 decades; Possesses strong management skills and expertise in sales and marketing
Mukesh M. Patel
Non-Executive Director
An advocate and International Tax Expert having over 4 decades of experience in the Legal profession
Nitin R. Desai
Bhadresh K. Shah
Independent Director
Independent Director
Chairman and MD of Desai Brother Ltd., a Pune-based diversified business group
Founder and MD of AIA Engineering Ltd., a global leader in the niche market it operates in
Dharmishtaben Raval
Independent Woman Director
Practicing advocate at Gujarat High Court; Panel advocate with institutions like SEBI, IRDA, SBI, UTI, ICAI
Apurva S. Diwanji
Independent Director
Senior partner with Desai & Diwanji, a law firm; Specialization in M&A, capital markets, co- investments, private equity
Akhil Monappa
Independent Director
Held Investing and operating roles in technology sector; Active investor in public and private companies
Upasana Konidela
Independent Woman Director
Third generation entrepreneur and philanthropist from the Apollo Hospitals family
37
Thank you
For any queries, please contact Arvind Bothra Arvind.Bothra@zyduslife.com +91-22-62711905
For more information, please visit: www.zyduslife.com
www.linkedin.com/company/zyduslife
Registered Office:
Zydus Corporate Park, Scheme No. 63, Survey No. 536, Khoraj (Gandhinagar), Nr. Vaishnodevi Circle, Sarkhej-Gandhinagar Highway, Ahmedabad – 382 481 Gujarat, India