Ranbaxy Laboratories Limited Merrill Lynch 12 th India Investor Conference New Delhi, February 2008.
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Transcript of Ranbaxy Laboratories Limited Merrill Lynch 12 th India Investor Conference New Delhi, February 2008.
Ranbaxy Laboratories Limited
Merrill Lynch 12th India Investor Conference
New Delhi , February 2008
Safe HarborExcept 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 "forward-
looking 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. Ranbaxy does not
undertake any obligation to update forward-looking statements to reflect events or
circumstances after the date thereof.
Mission Statement
“ To become a Research based
International Pharmaceutical Company ”
Ranbaxy Overview
Amongst top 10 Global Generic companies (CY ’07 sales ~ $1.6 Bn, +20%)
Largest pharmaceutical Company out of India
Worldwide Presence
- Ground operations in 49 countries, products sold in > 125
- Manufacturing locations in 11 countries comprising 25 facilities
Business - International - 80%
- Domestic - 20%
~12000 employees globally spanning 51 nationalities
Business Model
Global Reach
• Developed Markets
North America, EU, Japan
• Emerging markets
India, Romania, CIS, Africa
Manufacturing
Product Portfolio
Research & Dev.
• Generics
• Branded Generics
• Branded & OTC
• Dosage Form
• API* - Vertical Integration
• In-house / Outsource
• The India advantage
• New Chemical Entities
• Generics / NDDS*
• Complex / Niche/ FTF*
• The India advantage
* NDDS - Novel Drug Delivery System, API – Active Pharmaceutical Ingredients, FTF – First to File
Global Presence
Global Manufacturing API facilities in India - 6, API - 5, Fermentation - 1
Global Dosage Forms (DF) facilities - 19, India - 6, Overseas - 13
Active Pharmaceuticals Ingredients (APIs)Facility, Mohali
USA
India
Romania
China
Ireland
Vietnam
Malaysia
Nigeria
+ South Africa, Japan and Brazil
Research & Development Dedicated Facilities for Innovative & Generics Research
> 1400 R&D Personnel ( ~ 250 PhD’s)
8-10 NCE molecules in pipeline
4 NDDS platform technologies
~ $ 100 Mn total spend (6.4% to sales)
Collaboration in Drug Discovery Research (DDR)
Out-licensing
in Novel Drug
Delivery Systems
Out-licensing
in DDR
R&D I
R&D III
R&D II
R&D IV
Global Sales (2005 - 2008e)
$ MnCAGR* ~ 19%
~ 1900 e
e - estimate
1178
1339
1607
400
800
1200
1600
2000
2005 2006 2007 2008
* 3 year CAGR on like-to-like basis .i.e. excluding allied businesses divested in 2005
Sales by Geography (DF) – 2007
Global Sales ($ Mn)
Dosage Form (DF) 1506 +23%
API 101 - 12%
Total 1607 + 20%
Asia$448,+23%
North America$415,+6%
CIS$90,+22%
Europe$363,+41%
RoW $190, +39%
(EU)
Highlights – Year 2007
* Excludes impact of foreign exchange gains / losses on translation. ** and extra-ordinary items
Financials
Markets
Key Value Drivers
• Sales at $ 1607 Mn, + 20%
• EBIDTA* at 16.5% to sales
• PAT** at $ 147 Mn, + 28%
• 180 Day exclusivity products (FTF) for USA
• Specialty product flow - bio-generics, oncology, etc
• Research & Development - NCE focus
• Buoyant base business growth in USA, + 19%
• Strong performance across EU, + 41%
• Emerging markets continue robust growth, + 32%
USA
24% of global sales, base business growth (excl. FTF) +19%
Distribution coverage with all major wholesalers & and retail chains
Branded business growth + 37%
- Sotret gains market leadership ~ 51% MS
- Acquisition of BMS portfolio to further strengthen dermatology franchise
Robust product flow with assured visibility on FTF products from ’08-10
- Sumatriptan - 2008, Valacyclovir - 2009, Atorvastatin & Tamsulosin - 2010
- Atleast 1 potential FTF launch anticipated from 2008 to 2012/13
Note : Anticipated FTF launches depending on regulatory approval & litigation outcome, where applicable
Year 2007
USA – Product Pipeline
239 cumulative filings
141 approvals
98 pending approvals
18 Para IV First to File
Cumulative ANDA Filings Innovator Market Size
Source (Market Size) : IMS
98 ANDAs
$ 54 Bn
$ 27 BnPara
IVFTF
Yr 2007 – 28 filings & 18 approvals
European Union
Presence in 23 of the 27 EU countries
Strong product flow in ’07 with multiple Day 1’s
0
100
200
300
400
2007 2006
Total EU Sales - 2007
$ 363
$ 258
$ Mn
+ 41%$ 120 Mn, + 21%
$ 73 Mn, + 5%
$ 49 Mn, + 69%
$ 47 Mn, + 36%
Romania
France
UK
Germany
Key Country Sales - 2007
India
Source : IMS - ORG
Ranked in No 2 in domestic market with a 5.04% MS(Source :ORG-IMS, QTD Nov )
Sales at $ 338 Mn, + 23 % (including CHC)
Leadership in NDDS products with 7% MS. Contribution to total
sales ~ 9%
Dedicated task forces for Specialized & Chronic therapies
Chronic share contribution at 24% (21% : IMS Cum Nov ’06)
18 brands in Top 300 of Industry, 9 in Top 100
Robust Consumer Healthcare business led by flagship brand ‘ Revital’
Key Value Drivers
Emerging Market /
Developed Market Mix
180 Day Exclusivity
Products in USA
Specialty Therapeutic
Segment Presence
Enhanced Focus on NCE Research
Market Mix
Growth well spread across geographies
Stability & sustainability of profits
20072005
Others6%
Emerging54%
Developed40%
Others13%
Emerging44%
Developed43%
180 Day Exclusivity Products (USA)
Molecule Innovator Market Size
Status Year
Simvastatin* Merck (Zocor) $ 0.5 Bn Launched 2006
Pravastatin* BMS (Pravachol) $ 0.2 Bn Launched 2007
Sumatriptan GSK (Imitrex) $ 1.0 Bn Settled 2008
Valacyclovir GSK (Valtrex) $ 1.3 Bn Settled 2009
Tamsulosin BI*/Astellas (Flomax) $ 1.2 Bn Settled 2010
Atorvastatin Pfizer (Lipitor) $ 8.0 Bn Won ’995 2010
*FTF for the 80 mg dosage strength respectively. Market sizes at innovator prices (Source :IMS). BI – Boehringer Ingelheim.
Anticipated FTF launches depending on regulatory approval & litigation outcome, where applicable
At-least 1 FTF launch planned each year upto 2012 / 2013
Specialty Segment Presence
In-House
• Penems
• Limuses
• Oral High Potency
Non-cytotoxics
Leveraging front end presence & regulatory expertise
Technology & Resource intensive – high entry barriers
Alliances
• Bio-generics
• Peptides
• Oncology & Specialty
Injectables
Enhanced Focus on NCE Research
In-principle approval from the Board for de-merger of Drug Discovery
Research (DDR)
To create an independent pathway for DDR with dedicated resources
and enhanced focus for long term value building
Provides platform for new growth opportunities through increased
collaborations and partnerships
Specific framework & other details under finalization
NCE Pipeline
RBx 11160
Molecule Status
Phase II trials (with Piperaquine)
have been initiated in Q4 2007
Out-licensed to PPD Inc. 1Phase I trials completed
Phase I trials completed
Candidate Selection
GSK Program - COPD / Asthma
RBx 10017876- Inhalation PDE IV B, COPD/Asthma
RBx 10020025- Tiotropium like , MRA inh, COPD/Asthma
RBx 10019821- Diabetes, DPP IV
RBx 10014255- Anti infective, Macrolide / Ketolide
Therapeutic Area
Malaria
Dyslipidemia
Urinary Incontinence
RBx 10558
RBx 9841
Ranbaxy – GSK Alliance Expansion of strategic alliance established in 2003
Take leads beyond candidate selection to POC* in man
Therapeutic area focus of AI & Metabolic, Respiratory & Oncology
> $ 100 Mn in milestone and double digit royalties on
commercialization of a product
Co- marketing rights in India
First candidate identified for Respiratory Inflammation
* Proof of Concept
Financials
Particulars
Sales
EBIDTA*
% sales
Rep. PAT
Adj. PAT**
2007 Gr.%
1607 20%
26516.5%
28%
191 68%
147 28%
Q4 2007 Gr.%
451 19%
7617.0%
20%
48 15%
45 26%
* Excludes impact of foreign exchange gains / losses on translation
$ Mn
** Excludes impact of foreign exchange gains / losses on translation & extraordinary items
2008 e
+18-20 %
~18%
+20-25%
Summary A vertically integrated global pharmaceutical Company
Presence across all key developed & emerging markets
Strong distribution network & brand building capabilities
India based Research & Development & Manufacturing
Robust generic product flow
New high growth specialty segments
Focus on NCE research
Thank You …
Merrill Lynch 12th India Investor Conference
New Delhi , February 2008