Press Release and Analyst presentation on Q3FY16 Results [Company Update]

8/20/2019 Press Release and Analyst presentation on Q3FY16 Results [Company Update]

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Investor Presentation Q3FY16

February 2016

Alkem Laboratories Limited


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Safe Harbor Statement

This presentation contains forward-looking statements and information that involve risks, uncertainties and

assumptions. Forward-looking statements are all statements that concern plans, objectives, goals, strategies,

future events or performance and underlying assumptions and other statements that are other than statements of

historical fact, including, but not limited to, those that are identified by the use of words such as “anticipates”,

“believes”, “estimates”, “expects”, “intends”, “plans”, “predicts”, “projects” and similar expressions. Risks and

uncertainties that could affect us include, without limitation:

• General economic and business conditions in India and other key global markets in which we operate;

• The ability to successfully implement our strategy, our research and development efforts, growth & expansion

plans and technological changes;

• Changes in the value of the Rupee and other currency changes;

• Changes in the Indian and international interest rates;• Allocations of funds by the Governments in our key global markets;

• Changes in laws and regulations that apply to our customers, suppliers, and the pharmaceutical industry;

• Increasing competition in and the conditions of our customers, suppliers and the pharmaceutical industry; and

• Changes in political conditions in India and in our key global markets.

Should one or more of such risks and uncertainties materialize, or should any underlying assumption proveincorrect, actual outcomes may vary materially from those indicated in the applicable forward-looking statements.

Any forward-looking statement or information contained in this presentation speaks only as of the date of the

statement. We are not required to update any such statement or information to either reflect events or

circumstances that occur after the date the statement or information is made or to account for unanticipated

events, unless it is required by Law.


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6,865

8,816

Q3FY15 Q3FY16

Financial Highlights – Q3FY16 Consolidated

Al l figures in INR mn

9,878

12,747

Q3FY15 Q3FY16

29.0%

1,711

2,354

Q3FY15 Q3FY16

37.6%

Net Income from Operations

EBITDA

1,679

2,270

Q3FY15 Q3FY16

35.2%

PBT

17.3% 18.5% 17.0% 17.8%

YoY Growth%

% of Net Income

from Operations

2,821

3,644

Q3FY15 Q3FY16

Net Sales – Geographical Split

28.4% 29.2%

Domestic International


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Al l f igures in INR mn

28,314

38,490

9MFY15 9MFY16

35.9%

2,872

6,902

9MFY15 9MFY16

140%

Net Income from Operations

EBITDA

3,004

6,812

9MFY15 9MFY16

127%

PBT

10.1% 17.9% 10.6% 17.7%

20,817

27,613

9MFY15 9MFY16

6,865

10,046

9MFY15 9MFY16

Net sales – Geographical Split

32.6% 46.3%

Domestic International

Financial Highlights – 9MFY16 Consolidated

YoY Growth%

% of Net Income

from Operations


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1. Growth after consolidation of Indchemie and Cachet’s results in the current financial year

2. Source: IMS SSA MAT Dec 2015

• India sales contributed 70.8% to total net sales for

Q3FY16

• During the quarter, our secondary sales grew by 18.6%

YoY – higher than Indian Pharmaceutical Market growth

of 15.2% (Source: IMS SSA Dec’15)

• Company maintained its leadership position in

established therapies of Anti-infectives, Gastro Intestinal,Pain / Analgesics and Vitamins / Minerals / Nutrients

• Improved market ranking in emerging therapies like

Neuro / CNS, Cardiac and Anti-Diabetic

• 5 brands featured among top 50 and 13 among top 300brands in India (Source: IMS SSA MAT Dec’15)

India Business: Q3FY16 Net Sales of Rs.8,816 mill ion (28.4% growth1 YoY)

Business Highlight Q3FY16

India sales

Therapy-wise breakup2

Q3FY15 Q3FY16 9MFY15 9MFY16

27,613

20,8176,865

8,816

INRmn

42%

18%

12%

8%

4%4%

3%3%

6% Anti-infectives

Gastro Intestinal

Pain / Analgesics

Vitamins / Minerals /NutrientsCardiac and Diabetology

Gynaec.

Neuro / CNS

Derma

Others


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15.1%

30.8%24.1% 22.9%

14.5% 15.1% 13.5%19.9%

Derma Neuro/ CNS Cardiac Anti-diabetic

18.5%17.8%

18.6%17.3%14.5% 16.0% 13.5% 13.5%

Anti-infectives Gastro-intestinal Pain/ Analgesics Vitamins/ Minerals / Nutrients

Indian pharma industry sales growth YoY3,4

11.6% 5.7% 5.1%

Alkem sales growth YoY3,4

Market rank

Market share4

Market share4

331

Indian pharma industry sales growth YoY3,4 Alkem sales growth YoY3,4

1.9% 0.6% 0.8%

Source: IMS SSA Dec 2015 3 Domestic formulations sales; 4 For 3 months ended Dec‘15

E s t a b l i s h e d t h

e r a p e u t i c

a r e a s o f A

l k e m

3.7%

5

1.5%

E m e r g i n g t h e r a p

e u t i c

a r e a s o f A l k e

m

India Business: Therapy Performance during Q3FY16

Market rank301416 28 +1+1 +1


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• US sales contributed 20.9% to total net sales for

Q3FY16

• Filed 2 ANDAs during the quarter, taking the cumulative ANDA filings to 70 and 1 NDA (as on 31st Dec’15)

• Received 5 ANDA approvals (including 1 tentative

approvals) during the quarter, taking cumulative ANDA

approvals to 27 (including 3 tentative approvals) and 1

NDA (as on 31st Dec’15)

US Business: Q3FY16 Net Sales of Rs. 2,602 mill ion (18.9% growth YoY)


U.S. Filings # Nos.

Total ANDAs 70

ANDA - Para IV (inc. FTF) 30

DMF 18

NDA 1

US sales

Cumulative US filings5

Q3FY15 Q3FY16

INRmn

2,602

2,189

9MFY15 9MFY16

7,473

5,046

5. As on 31st Dec 2015;

24

3

43

70

Final Approvals Tentative Approvals

Pending Total


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Other International Markets: Q3FY16 Net Sales of Rs.1,041 mill ion (64.8% growth YoY)


• Company has presence in more than 50

international markets

• Other International sales contributed 8.4% to total

net sales for Q3FY16

• Growth in the Other International Markets sales was

driven by growth in key focus markets such as

Australia and Chile

Other International Markets sales

Q3FY15 Q3FY16

INRmn

1,041

632

9MFY15 9MFY16

2,573

1,819


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Strategy going forward

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2

3

4

5

India Sales: Consolidate our leadership position in the acute segment by

driving growth in our mega brands

India Sales: Increase our market share in the chronic segment through

market share acquisition and new product introductions

Improve our field force productivity through SFE (Sales ForceEffectiveness) initiatives

Continued focus on R&D to accelerate ANDA filings for the US markets

and develop differentiated portfolio

Strategic partnerships / collaborations to enhance capabilities and

product portfolio for focus markets


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Financials – Key P&L items (Consolidated)

Particulars (Rs mn) Q3FY16 Q3FY15 YoY

growth

9MFY16 9MFY15 YoY

growth

Net Income from Operations 12,747 9,879 29.0% 38,490 28,314 35.9%

Gross Profit 7,658 5,760 33.0% 23,157 15,321 51.1%

Gross Profit margin 60.1% 58.3% 60.2% 54.1%

EBITDA 2,354 1,711 37.6% 6,902 2,872 140.3%

EBITDA margin 18.5% 17.3% 17.9% 10.1%

PBT 2,270 1,679 35.2% 6,812 3,004 126.7%

PBT margin 17.8% 17.0% 17.7% 10.6%

PAT (After Minority Interest) 1,889 1,615 17.0% 6,164 2,601 137.0%

PAT margin 14.8% 16.3% 16.0% 9.2%

EPS 15.8 13.5 17.0% 51.6 21.8 137.0%


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Institution – Mutual Funds, Foreign Venture Capital, Foreign Portfolio Investors and Foreign Institutional Investors

Non-Institution – Individuals, Bodies Corporates, Clearing Members, Non Resident Indians, Hindu Undivided Family and Trusts

Latest Shareholding Pattern

Promoter &Promoter Group,

66.64%Institution,

6.04%

Non-Institution,27.32%

Shareholding pattern as on 31st December 2015


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Thank You

Documents

Press Release and Analyst presentation on Q3FY16 Results [Company Update]