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(1)

Ipca Laboratories Ltd.

Corporate Presentation

(2)

Company Overview

Incorporation

: 1949

Present Management

: Since 1975

Total income F. Y. 2015-16

: ` 2838.92 Crs / US$ 433 Mn

Exports F. Y. 2015-16

: ` 1428.72 Crs / US$ 288 Mn

Exports F. Y. 2015-16

: ` 1428.72 Crs / US$ 288 Mn

Number of Employees

: 13,132 including 6050 in marketing and distribution

Business Model

: Fully integrated pharmaceutical company producing Branded and Generics Formulations, APIs and Intermediates
(3)

Five Years’ Highlights

2011-12

2012-13

2013-14

2014-15

2015-16

Domestic Income

( `

Crs )

941.01

1,081.00

1,190.23

1,367.54

1,410.20

Domestic Income (US $ Mn)

143.67

165.04

181.71

208.78

215.30

Export Income

( `

Crs )

1,401.97

1,716.08

2,066.02

1,752.86

1,428.72

Export Income

( `

Crs )

1,401.97

1,716.08

2,066.02

1,752.86

1,428.72

Export Income (US $ Mn)

214.04

262.00

315.42

267.61

218.13

Total Income

( `

Crs )

2,342.98

2,797.08

3,256.25

3,120.40

2,838.92

Total Income (US $ Mn)

357.71

427.04

497.14

476.40

433.42

Net Profit After Tax

( `

Crs )

280.17

331.39

477.37

256.11

91.45

(4)

Manufacturing Facilities

(5)

Manufacturing Facilities

Formulations

Location Dosage Form Approvals / Inspections

Athal, Silvassa Tablets & Capsules

UK-MHRA, TGA-Australia, MCC-South Africa,

HPB-Canada, WHO-Geneva

Ratlam, Madhya Pradesh Tablets, Liquids, Injectables

& Ointments MCC-South Africa

Kandla, Gujarat Betalactum – Tablets,

Capsules & Dry Syrups UK-MHRA, MCC-South Africa

Silvassa Tablets & Capsules

UK-MHRA,

TGA-Australia, HPB-Canada, US-FDA

*

(6)

Manufacturing Facilities

Formulations

Location Dosage Form Approvals / Inspections

Dehradun, Uttaranchal Tablets &

Cephalosporin Injectables WHO-GMP

Indore (SEZ), Madhya

Pradesh Tablets & Capsules

UK-MHRA US-FDA

*

Sikkim Tablets & Capsules GMP

Pithampur, Dhar , Madhya

Pradesh High Potency Oral Solid Dosage

WHO-GMP

INVIMA Colombia

Tarapur, Palghar Tablets

(7)

Manufacturing Facilities

(8)

Manufacturing Facilities

APIs

Location Approvals / Inspections

Ratlam, Madhya Pradesh

TGA-Australia, EDQM, Danish Regulatory Authority, PMDA-Japan, WHO-Geneva,

US-FDA

*

Indore, Madhya Pradesh WHO-GMP

Ankleshwar, Gujarat PMDA –Japan

Nandesari, Gujarat WHO-GMP

Aurangabad, Maharashtra WHO-GMP

Mahad, Maharashtra GMP

Ranu (Tehsil Padra), Gujarat

(9)
(10)

Revenue Break-up

2015 - 16

76% 24% Total Revenue Formulations APIs 77% 23% 60% 40% Total Revenue Exports Domestic 51% 49% 84% 16% Domestic Formulations APIs 90% 10% 71% 29% Exports Formulations APIs 65% 35%
(11)

Revenue Break-up

Domestic Exports Total Domestic Exports Total

Branded Formulations 1206.70 236.36 1443.06 1128.73 343.81 1472.54 -2.0% Growth 2014-15

` Crs

` Crs

` Crs

` Crs

2015-16 Generic Formulations - 685.69 685.69 - 895.40 895.40 -23.4% Total Formulations 1206.70 922.05 2128.75 1128.73 1239.21 2367.94 -10.1% API / Intermediates 140.66 506.67 647.33 178.32 513.65 691.97 -6.5% Others 62.84 - 62.84 60.49 - 60.49 Total Income 1410.20 1428.72 2838.92 1367.54 1752.86 3120.40 -9.0% Growth 3.1% -18.5% -9.0%
(12)
(13)

Financials

`

Crs

US$ Mn

`

Crs

US$ Mn

%

Growth

Total Income

2838.92

433

3120.40

476

-9%

EBIDT

324.08

49

523.71

80

-38%

F.Y. 2015 - 16

F.Y. 2014 - 15

# After forex Loss of ` 39.22 Crs as against forex gain of Rs. ` 4.25 Crs for previous year.

EBIDT %

11.51%

16.96%

PBT #

108.52

17

357.73

55

-70%

PBT %

3.85%

11.59%

PAT #

91.45

14

256.11

39

-64%

(14)

Financials

Profitability to

Net Income

FY 2015-16

FY 2014-15

FY 2013-14

PBIDT

11.51%

16.96%

24.89%

PBT

3.85%

11.59%

19.45%

PBT

3.85%

11.59%

19.45%

PAT

3.25%

8.29%

14.76%

(15)

Financials

Business Characteristics FY 2015-16 FY 2014-15 FY 2013-14

Return on Capital Employed % (PBIT /

Capital Employed) 4.37% 12.71% 25.28%

Return on Net Worth % (PAT / Net

Worth) 3.97% 11.47% 24.09%

Fixed Asset Turnover Ratio (Total

Income / Net Fixed Assets) 1.35 1.54 2.21

Capital Employed Turnover Ratio (Total Capital Employed Turnover Ratio (Total

Income / Capital Employed) 0.90 1.03 1.26

Asset Coverage Ratio (to term loan) (Net Fixed Assets / Total Long Term

Borrowings) 3.06 3.32 3.22

Long Term Debt Equity Ratio (Total Long

Term Borrowings / Net Worth) 0.30 0.27 0.23

Debtors Turnover Ratio (Days) (Trade

Receivables / Turnover) x 365 48 42 51

Creditors Turnover Ratio (Days) (Trade

Payables / Purchases) x 365 108 66 100

Inventory Turnover Ratio (Days)

(16)

Financials

Growth

FY 2015-16

FY 2014-15

FY 2013-14

Net Total Income

-9.00%

-4.20%

16.40%

Domestic Sales

3.10%

15.30%

10.90%

Export Sales

-18.50%

-15.20%

20.40%

Export Sales

-18.50%

-15.20%

20.40%

PBIDT

-38.10%

-35.00%

29.60%

PBT

-69.70%

-43.10%

36.40%

Net Profit

-64.30%

-46.30%

44.10%

(17)

2014 – 15

Therapeutic Segment 2015 – 16

Exports Domestic Exports Domestic

21% 36% Non Steroidal Anti-Inflammatory Drugs (NSAID) 25% 39%

30% 23% Cardiovasculars & Anti-Diabetics 31% 23%

24% 14% Anti-Malarials 17% 12%

11% 7% Anti-Bacterials 12% 6%

Financials

Contribution of Therapeutic Groups

2% 5% Gastro-Intestinal (GI) Products 3% 5%

3% 3% Neuro Psychiatry 5% 3% 2% 4% Cough Preparations 2% 4% - 4% Dermatology - 4% - 2% Urology - 2% - 1% Neutraceuticals - 1% 7% 1% Others 5% 1% 100% 100% Total 100% 100%

(18)

Branded Formulations

(19)

Branded Formulations

Domestic

All India Rank ORG-IMS : 22nd (MAT Mar’16).

25 Depots & 2 C&F agents.

13 Therapy Focused Marketing Divisions.

Field Strength (PSR/ BA)– 4290.

Over 2000 Wholesalers.

3 brands among top 300 brands (HCQS, Zerodol-P & Zerodol-SP).

(20)

Branded Formulations

Domestic

` 878.10 Crs US$ 134 Mn

CAGR = 11.20%

` 969.42 Crs US$ 148 Mn ` 1128.73 Crs US$ 172 Mn ` 1206.70 Crs US$ 1854Mn 2012 - 13 2014 - 15

Sales

2013 - 14 2015 - 16
(21)

Future Growth Drivers

Branded Formulations

Domestic

The company introduced 19 new Brands in the India market during 2015-16.

Clinical research as a tool to launch innovative combination formulations / NDDS.

Strong Brand building with focused promotion. Strong Brand building with focused promotion.

In licensing/ out licensing to build business in the promoted therapy.

Portfolio optimization, strategies to identify need gaps to build, enter, maintain and exit approach.

(22)
(23)

Exports to over 120 countries.

Recognized Star Trading House.

Among top 10 pharmaceutical exporters from India.

50% sales from exports.

International Business

50% sales from exports.

Field-force to promote brands in more than 30 countries of CIS, South East Asia, Middle East, Latin America and Africa.

(24)

Marketing offices in Russia, Ukraine, Vietnam, Philippines, Kenya, Columbia, Sri Lanka, Malaysia and Nigeria (subsidiary company).

Formulation dossiers for branded formulations registered in 62 countries.

(25)

` 1716.08 Crs US$ 262 Mn ` 2066.02 Crs US$ 315 Mn ` 1428.72 Crs US$ 218 Mn

CAGR = -5.90%

International Business

` 1752.86 Crs US$ 268 Mn 2013 - 14 2014 - 15 2015 - 16 US$ 218 Mn

Sales

2012 - 13
(26)

International Business

Continent

Formulations

Bulk Drugs /

Intermediates

Total

%

Contribution

Europe

373.50

175.10

548.60

38%

Africa

198.82

20.10

218.92

15%

Continent-wise Exports 2015 – 16 (```` Crs)

Africa

198.82

20.10

218.92

15%

Americas

113.30

151.96

265.26

19%

Asia

55.87

148.03

203.90

14%

CIS

92.99

6.63

99.62

7%

Australasia

87.57

4.85

92.42

6%

Total

922.05

506.67

1428.72

100%

(27)

International

(28)

` 1194.18 Crs US$ 182 Mn ` 1465.79 Crs US$ 224 Mn ` 1239.21 Crs US$ 189 Mn

CAGR = -8.20%

International

Formulations

` 922.05 Crs US$ 141 Mn 2012 - 13 2013 - 14 2014 - 15 2015 - 16

Sales

US$ 141 Mn
(29)

International

(30)

` 281.17 Crs US$ 43 Mn ` 346.06 Crs US$ 53 Mn ` 343.81 Crs US$ 52 Mn

CAGR = -5.60%

International

Branded Formulations

` 236.36 Crs 2012 - 13 2013 - 14 2014 – 15 2015 - 16

Sales

` 236.36 Crs US$ 36 Mn
(31)

Thrust on brand building in Pain, CVS, CNS, Anti-infective and Anti-malarial segments. Geographical expansion in covered countries through additional field force.

Expansion in business lines - Institutions and Distributors.

Introduction of new products - Existing developed formulations are identified for

International

Branded Formulations

Future Growth Drivers

Introduction of new products - Existing developed formulations are identified for registration and launch across all continents.

(32)

International

(33)

International

Generics

Country Products Registered Products Under Registration United Kingdom / Europe 59 2 ` 913.01 Crs US$ 139 Mn ` 1119.73 Crs US$ 171 Mn

CAGR = -9.10%

` 895.40 Crs US$ 137 Mn Australia / New Zealand 57 10 South Africa 42 20 United States / Canada 31 27 2012 - 13 2013 - 14 2014 - 15 2015- 16

Sales

` 685.69 Crs US$ 105 Mn
(34)

Dossiers developed by company approved in UK are being taken for registration in other EU countries.

Most formulations registered to be backed by own API.

Sale of generic dossiers with or without supply agreements.

International

Generics

Future Growth Drivers

Sale of generic dossiers with or without supply agreements.

(35)

Strategic tie up with 3 marketing partners for sale/distribution of Generic formulations.

42 ANDAs filed of which 18 ANDAs are approved.

8 to 10 ANDAs targeted for filing for every year.

505 (b) (2) projects/ Sustained Release Formulations.

International

Generics

Future Growth Drivers – North America

505 (b) (2) projects/ Sustained Release Formulations.

(36)

International

(37)

` 521.90 Crs US$ 80 Mn ` 600.23 Crs US$ 92 Mn `513.65 Crs US$ 78Mn

CAGR = -0.98%

International

APIs

` 506.67 Crs US$ 77 Mn 2013 - 14 2014 - 15 2015 - 16 2012 - 13

Sales

US$ 77 Mn
(38)

International

APIs – Drug Master Files

Sr. No. Name of the API

US- FDA UK -MHRA Canada- HPFB WHO Japan -PMDA Australia EDQM - Europe 1 Atenolol

a

a

a

a

a

a

a

a

a

a

a

a

CEP

a

a

a

a

2 Artemether

a

a

a

a

3 Artesunate

a

a

a

a

4 Artesunate Sterile

a

a

a

a

5 Amodiaquine Hcl

a

a

a

a

6 Amlodipine Besylate

a

a

a

a

a

a

a

a

6 Amlodipine Besylate

a

a

a

a

a

a

a

a

7 Allopurinol

a

a

a

a

a

a

a

a

CEP

a

a

a

a

8 Beventalol Hcl

a

a

a

a

9 Benzarone

a

a

a

a

10 Benzbromarone

a

a

a

a

11 Bendroflumethiazide

a

a

a

a

12 Bisoprolol Fumarate

a

a

a

a

a

a

a

a

13 Carvedilol

a

a

a

a

a

a

a

a

a

a

a

a

14 Cetrizine Dihydrochloride

a

a

a

a

CEP

a

a

a

a

(39)

International

APIs – Drug Master Files

Sr. No. Name of the API

US- FDA UK -MHRA Canada- HPFB WHO Japan -PMDA Australia EDQM - Europe 16 Chloroquine Sulphate

a

a

a

a

17 Chlorthalidone

a

a

a

a

a

a

a

a

a

a

a

a

18 Cilostazole

a

a

a

a

19 Citalopram HBR

a

a

a

a

20 Dihydroartemesinin

a

a

a

a

21 Etodolac

a

a

a

a

a

a

a

a

21 Etodolac

a

a

a

a

a

a

a

a

22 Famotidine

a

a

a

a

a

a

a

a

23 Fenofibrate

a

a

a

a

a

a

a

a

24 Fluconazole

a

a

a

a

25 Flumequine

a

a

a

a

26 Furosemide

a

a

a

a

a

a

a

a

a

a

a

a

CEP

a

a

a

a

27 Glimepiride

a

a

a

a

a

a

a

a

a

a

a

a

28 Hydrochlorothiazide

a

a

a

a

a

a

a

a

a

a

a

a

CEP

a

a

a

a

29 Hydroxyzine Di Hcl

a

a

a

a

a

a

a

a

30 Hydroxychloroquine Sulphate

a

a

a

a

a

a

a

a

a

a

a

a

a

a

a

a

(40)

International

APIs – Drug Master Files

Sr. No. Name of the API

US- FDA UK -MHRA Canada- HPFB WHO Japan -PMDA Australia EDQM - Europe 31 Indapamide

a

a

a

a

a

a

a

a

a

a

a

a

32 Losartan Potassium

a

a

a

a

a

a

a

a

CEP

a

a

a

a

33 Lumefantrine

a

a

a

a

34 Methylphenidate

a

a

a

a

a

a

a

a

35 Mesalamine/ Mesalazine

a

a

a

a

a

a

a

a

36 Metformin HCL

a

a

a

a

a

a

a

a

a

a

a

a

36 Metformin HCL

a

a

a

a

a

a

a

a

a

a

a

a

37 Metoclopramide HCl

a

a

a

a

a

a

a

a

CEP

a

a

a

a

38 Metoclopramide Base

a

a

a

a

39 Metoprolol Succinate

a

a

a

a

a

a

a

a

40 Metoprolol Tartrate

a

a

a

a

a

a

a

a

a

a

a

a

a

a

a

a

41 Midodrine Hydrochloride

a

a

a

a

42 Nabumetone

a

a

a

a

a

a

a

a

43 Nifedipine

a

a

a

a

a

a

a

a

44 Ondansetron Hydrochloride

a

a

a

a

a

a

a

a

a

a

a

a

45 Ondansetron Base

a

a

a

a

(41)

International

APIs – Drug Master Files

Sr. No. Name of the API

US- FDA UK -MHRA Canada- HPFB WHO Japan -PMDA Australia EDQM - Europe 46 Pantoprazole Sodium Sesquihydrate aaaa 47 Paroxetine Hcl aaaa 48 Perindopril aaaa 49 Primaquine Phosphate aaaa aaaa 50 Piperaquine Phosphate aaaa a a a a 51 Probenecid aaaa 52 Proguanil Hydrochloride aaaa aaaa 53 Propranolol HCl aaaa aaaa aaaa CEP aaaa 54 Pyrantel Pamoate aaaa aaaa aaaa aaaa 55 Pyrimethamine Hcl aaaa aaaa 56 Promethazine Hydrochloride aaaa 57 Quetiapine Fumarate aaaa aaaa 58 Risperidone aaaa 59 Residronate Sodium aaaa 60 Ractopamine Hcl aaaa aaaa

(42)

International

APIs – Drug Master Files

Sr. No. Name of the API

US- FDA UK -MHRA Canada- HPFB WHO Japan -PMDA Australia EDQM - Europe 61 Sodium Alendronate

a

a

a

a

a

a

a

a

a

a

a

a

62 Sulfadoxine

a

a

a

a

63 Telmisartan

a

a

a

a

64 Torsemide

a

a

a

a

a

a

a

a

65 Tramadol Hydrochloride

a

a

a

a

a

a

a

a

a

a

a

a

66 Trimethoprim

a

a

a

a

a

a

a

a

CEP

a

a

a

a

66 Trimethoprim

a

a

a

a

a

a

a

a

CEP

a

a

a

a

67 Triamterene

a

a

a

a

a

a

a

a

68 Triclabendazole

a

a

a

a

69 Valsartan

a

a

a

a

a

a

a

a

70 Warfarin Sodium Clathrate

a

a

a

a

a

a

a

a

71 Warfarin Sodium

CEP

a

a

a

a

72 Zaltoprofen

a

a

a

a

73 Zoledronic Acid

a

a

a

a

Total 47 4 20 7 16 12 44

(43)

Pursuing MNC tie-ups for supply agreements. Non-infringing process Patent filed for APIs.

International

APIs

(44)

Own API manufacturing to back formulations, especially for the Generic market.

Exploring strategic business relationship with smaller API manufacturers for increasing product basket.

International

APIs

Future Growth Drivers

(45)

Research & Development

(46)

Research & Development

APIs & Formulations

R & D Spending Year ` Crs % to Sales 2011-12 77.96 3.39% 2012-13 100.74 3.68% 2013-14 123.24 3.85% 2014-15 157.19 5.14% 2015-16 137.67 4.96%

(47)

Current scientist manpower of over 800.

Research focus on developing APIs with non-infringing process and development of finished dosage forms.

Development of NDDS for domestic and international market.

Research & Development

APIs & Formulations

(48)

Bio-tech / fermentation research facility established and working under contract research on two products.

Undertaking contract research activities for APIs & Formulations for international clients.

Research & Development

APIs & Formulations

(49)

Thank you

No part of this corporate presentation may be re-produced, quoted or circulated without prior approval of Ipca Laboratories Limited.

This presentation may include forward looking statements based on our current business expectations. Our actual results may differ from what is projected in this corporate presentation. The viewers of this presentation may use their own judgment and calculation before making any decision on any matter based on the information given herein. The company also disclaims any obligation to revise any of the information given in this presentation.

References

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