Read Microsoft PowerPoint - Investor Presentation - 201203 text version

Investor Relations Presentation

March 2012

Disclaimer

Except for the historical information contained herein, statements in this presentation and the subsequent discussions, which include words or phrases such as "will", "aim", "will likely result", "would", "believe", "may", "expect", "will continue", "anticipate", "estimate", "intend", "plan", "contemplate", "seek to", "future", "objective", "goal", "likely", "project", "should", "potential", "will pursue" and similar expressions or variations of such expressions may constitute "forwardlooking statements". These forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those suggested by the forward-looking statements. These risks and uncertainties include, but are not limited to our ability to successfully implement our strategy, our growth and expansion plans, obtain regulatory approvals, our provisioning policies, technological changes, investment and business income, cash flow projections, our exposure to market risks as well as other risks. Claris Lifesciences Limited does not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date thereof. Market information mentioned in the presentation is based on IMS Data and/or internal estimates of the company. This is not an offer or a proposal to invest in the shares of the company, investors are advised to undertake their own research before making an investment decision.

2

About Claris

Introduction

· · · · · ·

One of India's Largest sterile injectables pharmaceutical company Catering to the niche segment of Generic Injectables Products predominantly used for treatment in critical care Product catering to the needs of Hospitals only Unique company with India cost advantage Certain first of the kind products and unique delivery systems for an Indian company.

·

One of the few companies in India to have the capabilities to take products to the Regulated Markets

4

Evolution...

1999-2002 · Claris commences business as a Trading Company in Blood Products Successfully penetrates the Indian hospitals market Creates the core team and support infrastructure Launches Specialty Products development programs Commences manufacturing project

2003-2006 · Regulatory teams and manufacturing infrastructure in place Achieves leadership position in India International expansion in emerging markets Manufacturing facility approvals by ANVISA Brazil, INVIMA Colombia, MHRA UK and others Unveils strategy for regulated markets Carlyle invests Rs. 905.06 million in the Company for 11.14% (post issue) stake

2007-2010 · US FDA approval for sterile injectables manufacturing facility Office in USA

2010-2011 · Went through public offering of shares on the BSE Obtained registrations for twenty five ANDAs in the United States Propofol approved in EU, commercialized sales in UK Filed for Propfol and Iron Sucrose in the US Ranked #1 in Healthcare and #9 over all in "Best Companies to work for 2011"

· · ·

· Emerges as a significant player in international markets First DCP Approval in the EU Launch of a range of infusion products in non-PVC bags Commenced own sales and marketing activities in the US Scale up of product development and manufacturing facilities · ·

·

·

· ·

·

·

·

·

·

·

·

·

·

Claris has evolved from an Emerging Market focused injectables company to one of the leading pure play global injectables players

5

An Overview

Business Mix · 128 products formulations across multiple markets and therapeutic areas · 5 manufacturing facilities in Ahmedabad, India; 4 operational and 1 under construction · Approvals by foreign regulatory authorities including US FDA#, MHRA(UK), TGA (Australia), ANVISA (Brazil) & GCC FDCA · Strong marketing & distribution network comprising an appropriate mix of multiple distribution channels / formats / layers · Customer base primarily includes government and private hospitals, aid agencies and nursing homes Claris has evolved from an domestic market-focused injectables company to one of the leading pure play global Injectables players

#

International, 53%

Domestic, 47%

CAPA programmed completed; awaiting re-approval 6

Unique Features

·

Claris is amongst the first few/only Indian companies to have... Successfully registered products in South Korea Sales of finished formulation in Korea Won SGH tender in Saudi Arabia Sales in injectables product in Canada, Taiwan, GCC, Emulsion and bag lines approved by USFDA #, MHRA etc. Approval of SVP line, LVP line and bag line in one inspection by FDA Capability to manufacture HES API and finished products

·

Claris has the largest... Global presence amongst Indian injectables companies Bag manufacturing capacity in India Emulsion products manufacturing capacity in India Number of injectables registrations across the world

#

CAPA programmed completed; awaiting re-approval.

7

Product Development

Basket of 128 products o 48 products commercialized in the international markets Capabilities to manufacture complex products and API o Emulsions (Propofol & Lipids) o Colloidal Solutions (Iron Sucrose) o Starches (API) In-House Formulations and Development team Sustainable compliance policy for Pharmacovigilance and quality standards Capabilities to meet quality standards across all markets

USFDA USA

MHRA UK

NEB Netherlands

NAM ­ Finland

TGA ­ Australia

GCC

ANVISA ­ Brasil

SSA ­ Mexico

INVIMA ­ Colombia

BPOM ­ Indonesia

8

Wide Product Range

Registrations

1228 · · · Filed 329 product registrations in regulated markets, including 39 applications in the US Received 207 product registrations in regulated markets, including 25 in the US Wide range of product catering to both segments of the Hospitals ­ the Infusions and Critical Care Segment. Multiple technology platforms ­ aqueous solutions as well as complex colloidal solutions, liposomal products and emulsions Multiple delivery systems ­ glass and plastic bottles, vials, ampoules and non-PVC & PVC bags Presence across 91 countries worldwide Developed and registered dossiers for countries across the world 122 207

Approval Under Approval

9

357

Approved

Under Approval

·

RM

EM

·

235 1021

· ·

Key Products

Diversified portfolio of sterile injectable products Anaesthesia & Analgesia · Propofol · Propofol MCT LCT · Paracetamol IV · Ropivacaine · Bupivacaine · Midazolam · Lidocaine Anti Infectives · Pipercillin+ Tazobactum · Ciprofloxacin · Metronidazole · Ofloxacin · Levofloxacin · Fluconazole · Meropenem PVE & Blood Products · Tetrastarch · Pentastarch · Hetastarch · Dextran-40/70 · Immunoglobulin · Human albumin Clinical nutrition · Parenteral Nutrition o Amino acids o Carbohydrate o Fat emulsion o Glutamine IV · Enteral Nutrition

10

Key Products

Diversified portfolio of sterile injectable products

Renal Care & Oncology · Iron sucrose · Erythropoietin · Alpha Ketoanalogue · Cyclosporine · Sirolimus · Mycophenolate Mofetil · Double & triple Chamber Bag CAPD · Pigylated Liposomal Doxrubicin

Hospital Solution · I.V. Solns.; Dextrose / Saline / Dextrose + Saline / Ringer Lactate- In Non PVC bags & Plastic bottles · Specific need Electrolytes-M/G/P/E

Other Injectables · Ondansetron · Diclofenac Sod. · Dobutamine · Metoprolol · Heparin

11

Manufacturing Facility

State-of-the-art Manufacturing Facility in India · · · · · · 78 acre campus with 5 manufacturing plants ­ 4 operational, 1 under development. Sterile Injectable Facility ­ WHO GMP certified and approved by USFDA#, MHRA, TGA, ANVISA, GCC FDCA Frost & Sullivan India Manufacturing Excellence Award for 3 years IDMA Quality Excellence Awards for 4 times Setting new benchmarks in green and sustainable development State of the Art manufacturing equipments suppliers Bottlepack: FFS machines from Rommelag Clestra: Walkable ceiling, flexible non corrosive rooms Stilmas: Most energy efficient water for injection plant Christ: High quality purified water facility Robert Bosch, Groninger, Plumat, Colpitt: Manufacturing Equipment Schoeller-Bleckmann Medizintechnik (SBM): Sterilization Equipments GF, Imanpack, Macofar, Bravity : Packing Automation Equipments

#

CAPA programmed completed; awaiting re-approval.

12

Plant wise details

Plant 1

SVP LineGlass Amp / Vials Emulsion Line Propofol & Fat Emulsion LVP Line Aqueous ­ Glass bottle Bag PVC and non PVC PLANNED CAPEX Emulsion Line Propofol & Fat Emulsion

Plant 2

LVP lines ­ 6 Mfg. 100 ml to 1,000ml Nipple head plastic bottles CAPD bag line Peritoneal dialysis PVC bags up to 2,000 ml PLANNED CAPEX LVP Line Mfg 500 ml Nipple head plastic bottles

Plant 3

API mfg Lines Iron Sucrose Starches

Plant 4

Bag Line PVC and non PVC Multi chamber bags Double & Triple Chamber LVP Line Aqueous ­ Glass bottle SVP Line Plastic Ampoules Emulsion Line Propofol and Fat Emulsion PLANNED CAPEX LVP line Mfg 500 ml nipple head Plastic bottles SVP Line Plastic Ampoules 5 & 10 ml EURO Head Line Mrg. 100 ml & 500 ml Plastic Euro head bottles

13

Delivery Systems & Technology

Current delivery systems

· Glass & Plastic Ampoules · Glass Vials · Glass & Plastic bottles · EURO Head · PVC bags · Non-PVC bags Single chamber bags Double chamber bags Triple chamber bags

Current technological capabilities

· Emulsion technology · Aqueous technology SVP LVP · Form-Fill-Seal technology for bags Non-PVC bags · Blow-Fill-Seal technology for plastic bottles

Strong capabilities in a range of delivery systems

14

Geographical presence ­ 91 countries

Regulated Markets Albania, Australia, Bulgaria, Canada, Denmark, Finland, Georgia, Germany, Greece, Hong Kong, Italy, Lithuania, Netherland, New Zealand, North Korea, Poland, Portugal, South Africa, South Korea, UK and USA

LatAM Argentina, Brazil, Colombia, Costa Rica, D R Congo, DR, Guatemala, Guyana, Haiti, Jamaica, Latvia, Mexico, Nicaragua, Peru and Venezuela

Africa Angola, Burundi, Chile, Ethiopia, Ghana, Guinea, Kenya, Liberia, Madagascar, Malawi, Mauritius, Mozambique, Niger, Nigeria, Rwanda, Senegal, Sierra Leone, Sudan, Tanzania, Uganda and Zambia

Asia Bangladesh, Bhutan, India, Indonesia, Nepal, Philippines, Singapore, Sri Lanka, Taiwan, Thailand and Vietnam

GCC+ME Afghanistan, Algeria, Baharin, Jordan, Kuwait, Lebanon, Oman, Qatar, Saudi Arabia, Syria, Tunisia, UAE and Yemen

CIS Azerbaijan, Kazakhstan, Kyrgyzstan, Russia, Tajikistan, Turkmenistan, Ukraine and Uzbekistan

15

Domestic Network

· PAN India delivery model · Network of approximately 50+ C&F agents 12 Distributors specially for Critical Care products 1067 Stockiest · Specialized sales team catering to 22,000 hospitals and nursing homes.

C&F Distributor

"Given the quality perception, Claris products command a premium in the market." ­ OC&C

Strategy Consultants

16

International sales & marketing strategy

Philosophy · Tiered approach based on the following criteria Nature Attractiveness Competition · Allows Claris to leverage its product development, regulatory and manufacturing strengths

Tier-I · Distributor manage the supply chain and Front End · A dedicated on ground sales team for Claris products · Example: Brazil, Mexico, Venezuela, Colombia, Chile, Vietnam, Uzbekistan, etc.

Tier-II · Supply chain and sales are management by distributor. · Claris country manager to over see all sales processes and pricing.

· 100+ distributors across the globe · Business arrangements with local companies in regulated markets · Strong Sales & Marketing Network and Front end across 91 countries. · Total sales force of 40 people in the international market

17

Strategy

Strategy

Invest in incremental capacities and product portfolio for Infusion products

Increase penetration in the regulated markets with new product launches Focus on increasing market share for certain high potential products

Growth Strategies

Establish and expand presence in certain key Emerging Markets Maintain cost leadership by expanding capacities

19

Opportunity

Domestic Market ­ Strong Presence

Favorable Demographics India`s rising population and income levels, along with a growing preference for private health services over public services, is augmenting the growth of the healthcare delivery market Availability of quality and affordable healthcare Among countries outside the US, India has one of the largest number of Joint Commission International (JCI)-approved hospitals. The country has 0.5 million doctors, 0.9 million nurses and around 1.37 million beds. India holds the top position in the number of medical and nursing colleges; 303 and 3,904, respectively. The cost of surgery in India is nearly one-tenth of the cost in the US and European countries Increased expenditure on healthcare Population growth and increased disposable income are expected to result in better healthcare awareness and more expenditure on healthcare.

Advantage India

Healthcare expenditure in India is expected to increase by 15 per cent per annum. The 2011 budget has allocated 26760 Cr. India has the potential to add nearly 1.74 million beds between 2008 and 2027 with an investment of about US$ 104 billion during the same period to fulfill the unmet needs.

Changing disease pattern India is witnessing a shift in disease patterns from communicable diseases to the high incidence of non-communicable and lifestyle-related diseases, which is driving the need for tertiary-and quaternary-care hospitals and clinics.

Claris has been present in domestic injectables market since 1999 and has a strong brand recall

Source: OC&C Report & Market research

21

India Growth Opportunity

Size of Indian Healthcare Industry (USD Billion)

280

· The domestic health care industry is expected to grow at 15% CAGR between 2010 ­ 2015 · The long term growth rate is projected at 11% (2015 ­ 2020)

100 50

177 projects were under execution in 2010 equivalent to 45,700 beds...

25034

2010

2015

2020

20695

This will call for a significant increase in hospital infrastructure - targeting 2 beds per 1000 (half the global average) by 2015 will require 1.3 mn additional beds over next 5 years

Private Governments

Each incremental bed is an opportunity for the company to market its products

Source: OC&C, Fitch & Consolidated FDI Policy, DIPP

22

International Markets ­ Huge Opportunity

Huge opportunity · Global injectables market is ~USD 143 bn (~20% of global pharma market) with generics contributing ~15% (USD 20 bn) · As the world looks towards reducing healthcare costs, generics is the only option. · Fewer players have lead to a shortage of products in the regulated markets · With large number of drugs going off-patent, the global generic injectable market is expected to reach USD 33 bn by 2014 (CAGR of 11%) Upcoming Injectables patent expiries

5 4 3 3.1 2 1 0 2011E 2012E 2013E 2014E 2015E

Source: OC&C Research

Limited manufacturers for most of the drugs

10+ 9 8 7 6 5 4 3 2 ' 1 0 10 20 30 40 50 60 70 No. of ANDAs Registered

Niche market ­ Limited competition -> High margin · High entry barriers ­ Complexity of products (multiple technology platforms and delivery mechanisms), capital intensive nature, dedicated facility, strict regulatory standards

4.1 2.6 1.5 1.4

(USD bn)

· Most of the products have limited number of suppliers - 86% of the ANDAs have less than five competitors · Limited price erosion even after generalization of product leading to higher margins compared to oral products

23

Product Opportunity

Market size of Claris products in Global Markets (USD Million)

6,865

1473

5,392 4,452 3,440 2,559

881 1012 940

2559

Commercialised

Non Commercialised

Under Registration

Pipeline - Can be Filed

Pipeline - Under Development

24

Source: IMS 2009 & Company Estimates

Management

Management Mantra...

·

Vision

To be one of the worlds' leading and most admired pharmaceutical companies in the global Generics industry. To continually create value and bring pride to stakeholders, partners, customers and the community at large. To preserve earth's most precious resource... Human Lives

· Mission

A world-class organization , built on, Outstanding performance lead by Entrepreneurial culture. Product quality through Emotional Pharmacopoeia. Management capabilities, Efficient process and Technology. Youth, hard work and discipline. Achieved in manner of fairness, honesty and corporate responsibility.

26

Board of Directors

Arjun S. Handa Managing Director & CEO

· ·

Post Graduate in Management from Northeastern University, Boston, USA and holds a Bachelor of Commerce degree from Gujarat University, Ahmedabad Appointed as Director of the Company on February 19, 2001 and has been the Managing Director & CEO since September 26, 2008

Dr. Pravin P. Shah Non-Executive Chairman and Independent Director

· ·

Holds a Bachelors degree in Commerce and Doctorate in finance from Mumbai University and also qualified & practicing Chartered Accountant and Cost and Works Accountant Appointed as a Director on April 27, 1999

Aditya S. Handa Non-Executive & Non-Independent Director

· ·

Holds a Master of Business Administration degree from Babson College, Boston, USA and holds a Bachelor of Commerce degree from Gujarat University, Ahmedabad Appointed as a Director of the Company on June 13, 2006 and served as CFO of the Company from January 1, 2008 to March 31, 2009

· Chetan Majumdar Executive Director · ·

Holds a Bachelor of Science degree from Saurashtra University, Rajkot Joined the Company on April 1, 1999 and has around 34 years of experience in the pharmaceutical industry Responsible for the technical aspects of the business

Eminent & Experienced directors bring extensive knowledge and best practices, assisting in attaining higher levels

27

Board of Directors

· Chandrasingh Purohit Executive Director (Finance) · ·

Holds a Master of Commerce degree from Maharaj Shivajirao University, Vadodara Appointed as an Executive Director in July , 2009, he has been with the company since April 1, 1999 Has around 13 years of experience in the pharmaceutical industry

· Amish Vyas Executive Director · · · Surrinder Lal Kapur Independent Director

Hold a Bachelor of Electronics and Communication degree from Gujarat University, Ahmedabad and holds MBA degree from Gujarat University Been with the Company since February 1, 2003 and has about 15 years of experience in the pharmaceutical industry Responsible for spearheading Company's foray in to the regulated markets Holds a Post-graduate degree in Mathematics and a Graduate degree in Law from Punjab University and has completed his training in Public Administration from the National Academy of Administration Served in the Indian Administrative Service for about 35 years Retired from Public Service as Chairman of the Board for Industrial and Financial Reconstruction

· ·

Eminent & Experienced directors bring extensive knowledge and best practices, assisting in attaining higher levels

28

Board of Directors

· T. V. Ananthanarayanan Independent Director ·

Holds a Master of Science degree in Biomedical engineering from the Indian Institute of Technology, Chennai, and is a graduate in mechanical engineering from the Indian Institute of Technology, Chennai Has over 35 years of experience in manufacturing and consulting

Nikhil Mohta Non-Executive Non-Independent Director

· ·

Holds a Post-graduate diploma in management from Indian Institute of Management, Ahmedabad and B. Com (Hons) from the University of Delhi Vice President in the Asia Growth Capital Group of First Carlyle Ventures III

Eminent & Experienced directors bring extensive knowledge and best practices, assisting in attaining higher levels

29

Share holding pattern

Share Holding Pattern ­ as on 31st December 2011

Others, 5.60% DII, 2.93%

FII, 11.33%

Carlyle, 11.14%

Promoter, 49.49%

Promoter Group, 19.51%

31

Financials

Financial Highlight

Net Sales (Rupees Mn)

7522 7435 7523

8000

7388

2500

EBITDA (Rupees Mn)

2295 2101

2434

2404

7000

5999

6000

2000

1620

5000 1500

3905

4000 3000

2770

1000

881 419

2000 500

1000

0

0

2005

1600

2006

2007

2008

2009

2010

2011

2005

2006

2007

2008

2009

2010

2011

PAT (Rupees Mn)

1304 1084 835

1414 1263

EBIDTA%

30.9% 27.0% 22.6% 15.1% 27.9%

PAT%

32.4% 32.5%

1400

1200

1000

800

600

476 212 12.2% 7.7% 13.9% 14.4%

17.5%

18.8%

17.1%

400

200

0

2005

2006

2007

2008

2009

2010

2011

2005

2006

2007

2008

2009

2010

2011

33

Balance Sheet

Rupees Mn.

CY09

Net Block (including CWIP) Cash & Bank Balance Current Assets, Loans & Advances Current Liabilities & Provisions Net Current Assets 6,152 2,369 5,036 4,799 237

CY10

7,641 3,956 5,347 3,672 1,675

CY11

9,495 1,593 6,217 2,075 4,142

Share Capital Reserves & Surplus Net Worth Total Loan Funds

341 4,761 5,102 3,140

638 8,508 9,146 3,606

638 9,883 10,521 4,109

34

Way Ahead...

We are committed to continuously scale up our efforts and resources in bringing innovative, and affordable medical care products to patients world wide; thereby contributing to well being of the earth's most precious resource... Human Lives

... Thank you!

35

Information

Microsoft PowerPoint - Investor Presentation - 201203

35 pages

Report File (DMCA)

Our content is added by our users. We aim to remove reported files within 1 working day. Please use this link to notify us:

Report this file as copyright or inappropriate

838157