Cadila Healthcare Final PPT 160715

04/21/2023 1

Cadila Healthcare Ltd.

04/21/2023 2

INDIAN PHARMA INDUSTRY - OVERVIEW

• 4th largest in the world, in terms of sales

• Estimated worth is around $12 Bn and expected to

reach $55 Bn by 2020

• 70% - domestic demand for Active Pharmaceutical

Ingredients (API’s)

• Export – 45% Bulk drugs and 55% Formulations

• 300 companies - Including small scaled, medium

scaled, large scaled players

• US$ 12,813.02 million – worth of FDI inflows

between April 2000 and December 2014

72%

19%

9%GenericOTCPatented

2005 2013 2020 F0

20

40

60

6 12

55

Year

Reve

nue

( USD

Bn)

EXPECTED CAGR OF 23.9%

REVENUE SHARE OF SUB-SEGMENTS

04/21/2023 3

EVOLUTION OF INDIAN PHARMA SECTOR

Before 1970

1970-90

1990-2010

2010 and beyond

Market dominated by foreign companies

• Indian Patent Act in 1970• Domestic

operations • Infrastructure

for production• Export

initiatives

• Liberalized market•Global

operations •Manufacturing

of generic drug • Adoption of

product patents

• Increased Patent fillings • Increased

R&D spending on generic drugs

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16%

13%

11%

8%9%7%

7%

29%

Revenue Share of segments

Anti-infectivesCardiovascularGastro-intestinalVitamins,MineralsRespiratoryPain/AnalgesicAnti DiabeticOthers

• Highly competitive but Fragmented Segments

• Highly regulated marketing communications by USFDA

• Very Technical / Scientific products

• Major R&D expenditures and High risk product development environment

• Long Product - Development Timelines

CHARACTERISTICS OF PHARMA SEGMENTS

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• 1952 - founded by Ramabhai Patel and Indravadan Modi

• 1995 - group was restructured into two separate entities

• Cadila Healthcare went to Patel family and Cadila Pharmaceutical went to Modi family

• Cadila Healthcare adopted name Zydus group

Zydus Group

Cadila Healthcare Ltd Cadila Pharmaceutical

History Introduction Product Marketing Operations Finance

Mr. Ramanbhai B. PatelFounder Chairman, Zydus Cadila

Mr. Indravadan A. ModiFounder, Cadila Pharmaceuticals

Medicine Man of India

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• Established in 1952, headquartered at Ahmedabad

• Founder - Late Ramabhai B. Patel - (1952-2001)

• Chairman & MD – Mr. Pankaj R Patel

• Revenue – Rs. 8,465 Cr FY15

• It is flagship company of Zydus Cadila Group

• 16,500 Employees

• 4th largest Pharma company in India

• Operations in 4 continents and 25 other Emerging markets

• APIs and Formulations are biggest contributors to the revenue

Mr. Pankaj R. PatelChairman, Zydus Cadila


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History Introduction Product Marketi

ngOperati

ons Finance

2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 5.0% 5.5%0%

5%

10%

15%

20%

25%

Cipla

Sun Pharma

GlaxoRanbaxy

Zydus Cadila

Lupin

Market Share

Reve

nue

Gro

wth

COMPETITORS OF CADILA IN INDIA

20%

17%

14%9%11%

7%

8%

13%Anti-infectivesCardiovascularGastro-intestinalDermatologyRespiratoryPain/AnalgesicNeurologyOthers

REVENUE SHARE OF SEGMENTS

• Anti-infectives is the major segment of formulations

• Some of the major competitors of Cadila Healthcare in India are Cipla, Sun Pharma, Ranbaxy and Lupin

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c

Activa S - Tab

Activa -Gel

Cadflo -

Capsule

Codorex -

Syrup

c

ATEN - Cardiac

NUXICO - Pain

OCID – Gastro Intestinal

ARZEP - Respiratory

EPSOLIN – CNS

SKINLITE - DERMATOLOGY

Protein shakes

c

Butter

Omega3

Mayonnais

Sandwich

spread

Gold

Natura

D-Lite

Everyuth

Peel off masks

Face wash

Scrub

Face pack

Home facial


Product Portfolio

API’s Formulations Wellness (Zydus Wellness)

Sugar Substitute Skincare Margarine

Spread Actilife

Animal Healthcare (PetZ)

Pet care needs

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History Introduction

Product

Marketing

Operations Finance

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SALES DISTRIBUTION CHANNEL

• Free medication samples to Physicians to increase prescriptions for the promoted drug

• Physicians prescribe Brand name medication over equivalent Generic medication

FREE SAMPLES

• MRs often try to visit a given Physician every few weeks

• Reps often have a call list of about 200-300 physicians with 120-180 targets to be visited in 1-2-3 week cycle

MEDICAL REPRESENTATIVES

• There is no need for Prescriptions• Mostly are Pain Management Drugs, Mother and Child

care, Weight management and Dietary SupplementsOVER THE COUNTER (OTC)


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ROLE OF MARKETING

History Introduction Product Market

ingOperati

ons Finance

Basic Research

• Provide background on market and product potential

Clinical Studies

• Recommend development

• Define product profile needs

• Define competitors

Regulatory Approval

• Input on Product labelling

• Recommend filing Strategy

• Define launch plan

• Develop Positioning and Branding

Product Launch

• Finalize Strategy

• Finalize Pricing

• Finalize Promotion and Branding

• Implement Launch Campaign

• Finalize field sales plan

Post Launch Marketing

• Monitor performance

• Adjust strategy and tactics

• Sequence promotion

• Manage product life cycle

04/21/2023 12


ngOperat

ions Finance

MANUFACTURING UNITS• 5 States , 8 Production Plants• Ahmedabad, Baddi, Goa, Sikkim - Formulations Manufacturing

Plants• Dabhasa, Ankleshwar, Navi Mumbai – API manufacturing plants

Zydus Takeda • Ahmedabad – Biologics Active Saubstance – Zydus Biologics

DOMESTIC

• US – Zydus Healthcare(USA) LLC, subsidiary in US. • BRAZIL – Zydus Healthcare Brasil Limitada – Largest

Pharmaceutical market in Latin America• MEXICO - Zydus Pharmaceuticals Mexico S.A de C.V - 2nd largest

market after Brazil in Latin Americ• SPAIN – Laboratorius Combix S.L. Spain - Generic Drugs• FRANCE – Zydus France SAS , Generic market grew by 6%

INTERNATIONAL

• Asia Pacific (Sri Lanka, Myanmar, Vietnam, Cambodia, Malaysia, Philippines and Singapore.)

• Africa(South Africa, Croatia, EthiopiaEMERGING MARKETS

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ngOperat

ions Finance

JOINT VENTURES AND CHALLENGESJOINT VENTURES:

• Zydus Cadila acquired 50% share in BSV pharma.• Zydus Cadila- Bayer Health for sales and marketing of Pharmaceutical produces in India• Zydus Cadila-Takeda pharmaceuticals( Japan)• Zydus Cadila- Hospira for producing anti Oncology Injectives• Zydus Cadila-Bremer Pharma(Germany) - Animal Health care

CHALLENGES:

• Gujarat pollution control board issues closer notice to Ahmedabad plant for polluting ground water in march 2014

• Zydus Cadila exits Japanese market after 7 years from its entry due to not making expected profits

• achieve sales of over Rs. 10000 crore by 2015 and be a research-based pharmaceutical company by 2020

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MARKET DETAILS - CADILA HEALTHCARE

INDUSTRY PHARMACEUTICALS

BSE CODE 532231

NSE CODE CADILAHC

52 WK. HIGH/LOW(Rs.) 2008.90/1008

MARKET CAP(Rs Cr) 39,485.44

CMP 1,928

SHARE O/S 20.48 CR

EPS 56.59

P/E 31.79

YEARS FY13 FY14 FY15 FY16E

NET SALES (Rs. Cr)

6,357 7,224 8,651 10,381

EBITDA 1,125 1,200 1,755 2,148

PBT 808.70 959.40 1,455 1,820

PAT 689 853 1,196 1,511

FY13 FY14 FY15 FY16 E0

5,000

10,000

15,000

6,357 7,224 8,65110,381

Year

Reve

nue

(Rs

cror

e)

CADILA HEALTHCARE REVENUE

75%

6%

8%

11%Promoter Owned

FIIs

DIIS

Others

SHARE HOLDING PATTERN


04/21/2023

PERFORMANCE OF SHARE PRICE FOR FY 13-15 WITH CIPLA AND BSE HEALTHCARE INDEX

MARKET DETAILS - COMPETITORS

PEERS CMP MARKET CAP EPS P/E

COMPANY Rs. Rs. in Mn (Rs.) Ratio

CADILA HC 1,926 39,485.44 56.20 38

CIPLA LTD 661.25 53,105.31 14.68 45.04

DIVIS LABS 1,881.95 24,979.93 58.26 32.20

IPCA LABS 693.35 8,750.02 37.92 18.28


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• Increase cumulative number of filings to 1075

•cardio-metabolic, Inflammation pain and therapeutic areas

•Lipaglyn – India’s first NCE launched in 2013

NCE RESEARCH

•Manufacturing of Biosimilars

•Exemptia – worlds first Biosimilar for Adalimumab, largest therapy for Inflammatory arthritis in 2014

BIOLOGICS

•2 R&D centres- Catania(Italy) and Ahmedabad (India)

•Largest Rabbies manufacturing facility in India

VACCINES

INTELLECTUAL RIGHTS

COMPANY FOCUS-RESEARCH

1200 researchers across 19 sites, working on differentiated medicines for the future

1

2

3

4

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CONCLUSION-FUTURE PROPECTS Cadila to start operation in Telangana - proposed to set up India's largest integrated

pharmaceutical city spread over 11,000 acres near Hyderabad, which is known as the bulk drug capital of India, accounts for nearly a fifth of India's exports of drugs, which stood at Rs 90,000 crore (US$ 14.56 billion)

•Key driver - $500 mn sales

•8th largest in US generic market

US business

•Over 55 new products launched

•Zydus Biologics to maximize market share

•Cumulative ANDA filings – 260

•Cumulative DMF filings - 260

Product filings and launches

•Growth of 19.76% in operational income

•CAPEX stood at Rs. 400 crores

•Raise Rs. 10,000 crores via issue of security bond through stakeholders

Sound financials

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2

3

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THANK YOU !!!

Presented by:Akshun Agarwal

Ravi Ranjan PanditTauseef NawazHitesh KhannaPraveen Singh

Aashay JainRonit Madaan

Sayani Samaddar

Cadila Healthcare Final PPT 160715

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