Glenmark Pharma is a global pharmaceutical company focused on research and development of new chemical and biological entities. It has 13 molecules in various stages of preclinical and clinical development. Glenmark has a significant presence in branded generics across emerging economies. It has 12 manufacturing facilities across 4 countries. Glenmark's business model focuses on specialty business including drug discovery and formulations, as well as generics.

1. Pharma Sector
S e p t e m b e r ,1 2 2 0 1 1 S a l im H a j ia n i
P r it i P iy u s h
Jig a r S h a h

3. Pharma Business Basics
 Formulation Business ( Glenmark,Lupin)
 API ( Active Pharma Ingredient)
 NCE ( New Chemical Entity)
 NME ( New Molecular Entity)
3

4. Pharma Business Basics
1 .F o r m u l a t io n b u s in e s s :
F o r m u l a t io n is t h e p r o c e s s in w h ic h d if f e r e n t
c h e m ic a l s u b s t a n c e s ,in c l u d in g t h e a c t iv e d r u g
,a r e c o m b in e d t o t o p r o d u c e f in a l m e d ic a l p r o d u c t .
2 .AP I :
An a c t iv e P h a r m a in g r e d ie n t (AP I)is t h e s u b s t a n c e
o f a p h a r m a c e u t ic a l d r u g o r a p e s t ic id e t h a t is
b io l o g ic a l l y a c t iv e . T e r m s in s im il a r u s e in c l u d e
a c t iv e p h a r m a c e u t ic a l in g r e d ie n t (AP I)a n d b u l k
a c t iv e in m e d ic in e ; in p e s t ic id e f o r m u l a t io n s a c t iv e
s ubs tan ce may be us ed .
3 .N C E /N M E :
A N e w c h e m ic a l e n t it y (N C E ), o r n e w m o l e c u l a r
e n t it y (N M E ), is , a c c o r d in g t o t h e u .s . F o o d a n d d r u g
a d m in is t r a t io n , a d r u g t h a t c o n t a in s n o a c t iv e
m o ie t y t h a t h a s b e e n a p p r o v e d b y t h e F D A in a n y
o t h e r a p p l ic a t io n s u b m it t e d u n d e r s e c t io n 5 0 5 (b )
o f t h e F e d e r a l f o o d , d r u g , a n d c o s m e t ic a c t .

5. Drug
Develo pmen t
F o r m u l a t io n s t u d ie s in v o l v e d e v e l o p in g a
p r e p a r a t io n o f t h e d r u g w h ic h is b o t h s t a b l e
a n d a c c e p t a b l e t o t h e p a t ie n t . F o r o r a l l y
taken d r u g s ,t h is us ually in v o l v e s
in c o r p o r a t in g t h e d r u g in t o a t a b l e t o r a
c a p s u l e . It is im p o r t a n t t o a p p r e c ia t e t h a t a
tablet c o n t a in s a v a r ie t y of other
s u b s t a n c e s a p a r t f r o m t h e d r u g it s e l f ,a n d
s t u d ie s h a v e t o b e c a r r ie d o u t t o e n s u r e
th at th e d rug
is c o m p a t ib l e w it h t h eDrugo t h e r s u b s t a n c e s .
Phase Manner Development of s e

C l in ic a l T r ia l P h a s e I D r u g L o a d

C l in ic a l T r ia l P h a s e II

C l in ic a l T r ia l P h a s e III
(F e a s ib il it y o n t h e b a s is o f
T e m p e r a t u r e ,h u m id it y ,o x id a t io n
a n d p h o t o l y s is (U l t r a v io l e t c l e a r a n c e )

6. Indian Pharma Story
India Pharma sector will lead to US $ 21 b by 2015
The Indian Domestic Pharma Story is founded
on 4 Pillars,What we call as 4 A'

Affordabability

Access

Awareness

Ailments

10. Indian Pharma Market is growing CAGR @ 6% & will
reach to 12,72,121,cr. Market by 2015.

13. More Details on Ailments.

15. USFDA Approval in Pharma sector?
1. USFDA approval is needed for launching medicine in open market in
US.
2. Drugs are feasible on Temperature,Humidity,Oxidation.
3. Drugs are in line with Medical Formulation for curing the disease or
reducing the impact of the diseases.

16. Latest FDA Approvals ,Launch & Tie ups in Pharma Sector.

Glenmark gets USFDA approval for hypertensive drug.

Sun Pharma receive USFDA nod for generic proscar tablet.

Dr. Reddy's resolve patent litigation of generic Lipitor with Pfizer.

Lupin to Market Sanofi's CNS brands in Phillippines.

Dr. Reddy's launches Allegra D24 OTC Tablet in US Market.

Rainbaxy Launches Painkiller in Domestic Market.

Orchid restarts production of API Facility.

17. The upcoming patent cliff :
T h e l e a d in g g l o b a l p h a r m a c e u t ic a l f ir m s a r e f a c in g
s o m e c h a l l e n g in g t im e s a s a s ig n if ic a n t n u m b e r o f
p a t e n t s f o r b r a n d e d d r u g s a r e s e t t o e x p ir e o v e r
t h e n e x t f iv e y e a r s . F r o m 2 0 1 1 -2 0 1 5 , t h e t o t a l
v a l u e (a s m e a s u r e d b y a n n u a l s a l e s )o f p a t e n t
e x p ir a t io n s is e x p e c t e d t o b e a r o u n d $ 1 0 0 b il l io n , a
s ig n if ic a n t in c r e a s e f r o m $ 7 3 b il l io n in p a t e n t
e x p ir a t io n s o v e r t h e p r e v io u s f iv e y e a r s . In d ia n
p h a r m a c e u t ic a l c o m p a n ie s c a n c a p it a l iz e o n t h is
o p p o r t u n it y d u e t o t h e ir f ir s t m o v e r a d v a n t a g e ,
s t r o n g p r o c e s s e n g in e e r in g s k il l s a n d a c c e s s t o
l o w -c o s t t a l e n t .E x a :

18. Benefits & Precautions of Patent Expiration to
Indian Companies
1.Globally Competitive in the 1.Focus on Long Term & Niche
generic business Segment.
2.The First Mover Advantage 2.Strong Competitive position
3.Low-Cost Manufacturing 3.Backward integration.
Base
4.Deep and Low-cost talent
Pool.

19. Details on Precautions
1.Focus on Complex & Niche Segment :
Long-term growth can be generated by focusing in specialized therapeutic
areas and/or more complex molecules.
2.Strong Competitive Positioning :
New drug delivery systems can be used to compete with drugs whose
formulation patents have not expired. These segments tend to be less
competitive, but development of such applications requires significant
capabilities in both research and marketing.
3.Backward integration:
Backward-integrated generic players with captive Active Pharmaceutical
Ingredient ( API) manufacturing capabilities are likely to enjoy higher
margins.

20. Domestic Pharma Sector
Growth Rate : 16.5% in 2010.
Highest Market Share : Cipla
Larges selling Brands : Cough Medication “Corex” ( Pfizer)
Largest Growing Drugs : Abbott's insulin ( 27% rise)
Novartis Voveran ( 6%)

21. Important comments by Azaz Motiwala
on Indian Pharma
• T h e G l o b a l m a r k e t is e x p e c t e d t o g r o w b y 7 %
t o 8 % o v e r n e x t 5 y r s . R e a c h in g a n a n t ic ip a t e d
$ 1 .7 t r il l io n
2 . In d ia n c o n s u m e r s p e n d 1 % o f h is t o t a l in c o m e o n
D r u g s & P h a r m a c e u t ic a l ,h o w e v e r r is e in p e r
c a p it a in c o m e w il l t r ip l e t h e s a m e b y 2 0 2 0 .
3 . G o v e r n m e n t s l o n g t e r m v is io n o f m a k in g
q u a l it y h e a l t h c a r e a f f o r d a b l e ,a t l e a s t 5 0 %
o f In d ia n p o p u l a t io n s h o u l d b e c o v e r e d u n d e r
h e a l t h in s u r a n c e b y 2 0 2 0 a g a in s t 1 5 % t o d a y .
4 . In d ia n h e a l t h c a r e in d u s t r y is e s t im a t e d t o b e
w o r t h o f $ 2 7 5 .6 b il l io n .
5 . In d ia n p h a r m a in d u s t r y w il l b e in T o p 5 in t h e
w o r l d b y 2 02 0.
Azaz Motiwala ,F o u n d e r ,Ik o n M a r k e t in g C o n s u l t a n t

22. Key Success factor for evaluation of Indian Pharma companies

23. Price Movements for BSE Health care Index v/s BSE Sensex

24. G L E N M AR K P H AR M A

25. Introduction
• R e s e a r c h -d r iv e n , g l o b a l , in t e g r a t e d p h a r m a c e u t ic a l
co mpan y
• L e a d in g p l a y e r in d is c o v e r y o f n e w m o l e c u l e s
– N C E s (n e w c h e m ic a l e n t it y )
– N B E s (n e w b io l o g ic a l e n t it y )
– 1 3 m o l e c u l e s in v a r io u s s t a g e s o f p r e c l in ic a l &
c l in ic a l d e v e l o p m e n t
• S ig n if ic a n t p r e s e n c e in Br a n d e d G e n e r ic s acro s s
E m e r g in g E c o n o m ie s
• O u t -l ic e n s in g d e a l s w it h G l o b a l P h a r m a m a j o r s r e -
a f f ir m s G l e n m a r k ’s s t r e n g t h in d is c o v e r y
• 1 2 M a n u f a c t u r in g f a c il it ie s l o c a t e d in 4 c o u n t ir e s

26. B u s in e s s M o d e l
E l u c id a t e d

27. Specialty Business : Drug Discovery
• P r im a r il y f o c u s e d in t h e a r e a s o f
– in f l a m m a t io n
– m e t a b o l ic d is o r d e r s
– p a in
• R o b u s t p ip e l in e o f m o l e c u l e s (N C E ’s & N B E ’s )
– 7 m o l e c u l e s a r e in c l in ic a l t r ia l s s t a g e
• P o t e n t ia l p e a k s a l e s o p p o r t u n it y f o r e a c h m o l e c u l e
b e in g in t h e r a n g e o f U S D 1 -1 0 b il l io n

28. Molecules under research

29. Specialty Business :Formulations Business
• C u r r e n t l y o r g a n iz e d a r o u n d f o u r r e g io n s
– In d ia
– L a t in Am e r ic a
– Ce n t r a l Ea s t e r n Eu r o p e
– S e m i R e g u l a t e d M a r k e t s o f Af r ic a /As ia
F o c u s o n t h e r a p e u t ic a r e a s
d ermato lo gy
-c a r d ia c
– a n t i-in f e c t iv e s
-d ia b e t e s
r e s p ir a t o r y
-g y n e c o l o g y
-C N S

30. Specialty Business : Generics
• G l e n m a r k G e n e r ic s L t d (G G L ), a s u b s id ia r y o f G l e n m a r k
Ph a r m a
• It c o m p r is e s o f U S G e n e r ic s , E u r o p e G e n e r ic s , AP I a n d
O n c o l o g y b u s in e s s e s
• G G L s M a r k e t in g S t r a t e g y :
– d e v e l o p in g , m a n u f a c t u r in g , s e l l in g , a n d d is t r ib u t in g
g e n e r ic p r o d u c t s t h r o u g h w h o l e s a l e r s , r e t a il e r s
a n d p h a r m a c y c h a in s
• G G L s f o c u s o n n ic h e b u s in e s s s e g m e n t s :
– D e r m a t o l o g y ,H o r m o n e s ,C o n t r o l l e d S u b s t a n c e s ,
O n c o l o g y , M o d if ie d R e l e a s e P r o d u c t s
• It m a r k e t s a r o u n d 6 5 AP Is g l o b a l l y , in c l u d in g t h e U S ,
v a r io u s c o u n t r ie s in t h e E U , S o u t h Am e r ic a a n d In d ia .
• G G L h a s s o f a r f il e d 4 1 D M F s (D r u g M a s t e r F il e s )w it h t h e
U S -F D A.

31. Diverse Product Portfolio

32. Segment Revenue Break-Up

33. St r e n g t h b e yo n d Nu m b e r s
• G r o w t h in n e t s a l e s d r iv e n b y r o b u s t g r o w t h in S p e c ia l t y &
G e n e r ic s b u s in e s s e s in t h e d o m e s t ic a n d g l o b a l m a r k e t s
• B o o k e d o u t -l ic e n s in g in c o m e r e l a t e d t o G B R 5 0 0 o f 1 1 1 .2 c r o r e
a s a g a in s t 8 9 .5 c r o r e (r e l a t e d t o G R C 1 5 3 0 0 )in Q 1 F Y1 1 . T h e
r e m a in in g U S $ 2 5 m il l io n w il l b e b o o k e d in Q 2 F Y1 2
• L a t in Am e r ic a n a n d C a r ib b e a n m a r k e t s s a l e s w it n e s s e d r o b u s t
gro w th d ue to lo w bas e
• L AT AM R e g io n t o b e E B ID T A n e g a t iv e f o r n e x t 2 y e a r s a s it is s t il l
in in v e s t m e n t p h a s e . T h u s im p l y in g r o b u s t r e v e n u e g r o w t h
p o t e n t ia l in t h e l o n g e r t e r m
• M a n a g e m e n t g u id a n c e f o r g r o w t h o f 2 5 % g r o w t h in U S in F Y
2 01 2 d u e t o :
– L a u n c h o f k e y p r o d u c t s : M a l a r o n e & C u t iv a t e in Q 3 F Y1 2
a n d Q 4 F Y 1 2 r e s p e c t iv e l y

34. Share Price Data

35. Financial Snapshot

36. Trend in EBITDA and PAT Margins

37. • Gl e n m a r k h as v a r io u s prod ucts in c l in ic a l
d evelo pmen t s tages .
– C r o f e l e m e r c o m p l e t e d it s P h a s e III c l in ic a l t r ia l s a n d
is e x p e c t e d t o l a u n c h in b e g in n in g o f F Y 1 3 .
– Al s o r e c e iv e d $ 1 5 m n f r o m S a l ix P h a r m a f o r
u p g r a d in g m a n u f a c t u r in g f a c il it y t o m e e t h ig h
e x p e c t e d d e m a n d o f Cr o f e l e m e r .
• L a u n c h e d t w o p r o d u c t s in Q 1 F Y 1 2 i.e . V o r t h T P & D o r ig e n
in t h e o r t h o p a e d ic s e g m e n t .
• r e c e iv a b l e d a y s h a v e d r o p p e d t o 1 2 5 f r o m 1 4 0
• S e t t l e m e n t o f l im it e d c o m p e t it io n p r o d u c t s l ik e
F l u t ic a s o n e P r o p io n a t e l o t io n (m a r k e t s iz e U S $ 4 4 m n )
a n d H y d r o c o r t is o n e B u t y r a t e c r e a m (m a r k e t s iz e
U S $ 3 8 m n ) w o u l d a l s o p e p u p t h e g r o w t h in t h e n e x t 2
years
• L a s t f is c a l it l a u n c h e d 1 9 p r o d u c t s a n d plan s to
l a u n c h 1 5 p r o d u c t s in c u r e n t f is c a l .

38. Valuation Matrix

39. Salesforce Productivity

40. Prescription Ranking

41. Strengths Risks
S t r o n g R & D p ip e l in e D e l a y in p r o d u c t a p p r o v a l s
Pl a n s t o l a u n c h 7 p r o d u c t s R is in g c o m p e t it io n in t e n s it y
a n d f il e 1 5 -2 0 AN D A’s in F Y 1 2
Fr a g m e n t e d Ma r k e t S h a r e
S a t is f a c t o r y p r o s p e c t s f o r
R a p id P r ic e E r o s io n
o u t -l ic e n s in g d e a l s
Ad v e r s e v e r d ic t in t h e
F o c u s o n n ic h e s e g m e n t s in t h e
o n g o in g T a r a k a L it ig a t io n
U S m a r k e t w h e r e p r ic e e r o s io n
is n o t s t e e p in c l u d e s : H ig h l y r e g u l a t e d m a r k e t
o r a l c o n t r a c e p t iv e s
Co n t r o l l e d S u b s t a n c e s
Dermato lo gy

42. LUPIN

43. Formulations Business
P r o m o t e d b y D r . D e s h B a n d h u G u p t a , a f ir s t g e n e r a t io n
e n t r e p r e n e u r , L P C is In d ia ’s f if t h l a r g e s t c o m p a n y b y
d o m e s t ic s a l e s .
G l o b a l F o r m u l a t io n s b u s in e s s c o n s t it u t e s c l o s e t o 8 4 %
o f L u p in ’s o v e r a l l b u s in e s s m ix , a n d in t e r m s o f
g e o g r a p h ie s , U S A is it s l a r g e s t m a r k e t o u t s id e In d ia . 6 7 % o f
t h e o v e r a l l b u s in e s s o f t h e C o m p a n y c o m e s f r o m
In t e r n a t io n a l M a r k e t s

45. Active Pharmaceutical Ingredients
( API)
• AP I s p a c e is d r iv e n b y t h e t w o As ia n g ia n t s C h in a a n d
In d ia .

46. • Th e C o m p a n y ’s w id e prod uct bas k et c o m p r is in g
f o r m u l a t io n s f r o m C V S , C N S , An t i-As t h m a , An t i-T B ,
D ia b e t o l o g y , D e r m a t o l o g y , G I, a n d o t h e r t h e r a p y
segments
• P l a n t s h if t f r o m G o a t o In d o r e S E Z
• M e d ic is P h a r m a t o u s e L u p in R & D p l a t f o r m f o r U S $ 2 0
m il l io n
T o m a r k e t E l i L il l y ’s H u m in s u l in p r o d u c t s in d o m e s t ic
mark et wo rth 1 25
• S ig n e d a n a g r e e m e n t w it h N a t c o P h a r m a t o j o in t l y
c o m m e r c ia l is e a g e n e r ic e q u iv a l e n t G S K ’s c a n c e r d r u g
T y k e r b w o r t h U S $ 1 1 3 .6 m il l io n

49. Valuation
• O n t h e U S f r o n t , t h e l a u n c h o f Al l e r n a s e
• N e w p r o d u c t l a u n c h e s e s p e c ia l l y O c s w il l d e t e r m in e
t h e c o u r s e . T h e l a u n c h o f g e n e r ic F o r t a m e t (a n t i-
d ia b e t ic )a n d Z ip r a s id o n e (a n t i-p s y c h o t ic )in t h e c u r r e n t
f is c a l a n d T r ic o r (a n t i c h o l e s t e r o l )a n d C o m b iv ir (a n t i-
r e t r o v ir a l )in F Y 1 3 w il l b e k e y t r ig g e r s t o w a t c h o u t
for.
• L a u n c h e d 6 n e w p r o d u c t s in Ja p a n l a s t f is c a l a n d
p l a n s f o r 6 t o 7 in F Y 1 2
• S u p r a x s a l e s g r e w 3 0 % a n d An t a r a in s in g l e d ig it
• F il e d 4 AN D As t a k in g t o t a l t o 1 5 2
– 51 appro ved
P l a n s t o l a u n c h 8 t o 9 p r o d u c t s in U S b e t w e e n Q 2 F Y 1 2 –
Q 4 F Y1 2
S o u t h Af r ic a s a l e s in c r e a s e d b y 4 7 %

53. Valuation Matrix

55. Strengths
Risks
• G iv e n it s h e a l t h y
g e o g r a p h ic m ix (8 0 % s a l e s • E a r l ie r t h a n e x p e c t e d
f r o m In d ia , U S & Ja p a n ) G e n e r ic c o m p e t it io n in
• D if f e r e n t ia t e d p r o d u c t s Suprax
a n d r o b u s t f in a n c ia l • IN R a p p r e c ia t io n w o u l d
m e t r ic s . h u r t , g iv e n it s e x p o s u r e
• B ig p r o d u c t r o l l o u t in to glo bal markets
t h e U S , in c l u d in g n ic h e /P IV • Re a s o n a b l e e x p o s u r e t o
oppys the d o m e s t ic
• G r o w t h in e m e r g in g f o r m u l a t io n s market
m a r k e t s (in c l u d in g In d ia )& (c 3 0 % o f s a l e s )
Ja p a n • In a b il it y t o e f f e c t iv e l y
• M a r g in im p r o v e m e n t b y s cale up the Ky o w a
b a c k e n d in g s o u r c in g t o o p e r a t io n s o r An t a r a
In d ia f r o m Ja p a n & r is in g s ales .
US s a l e s

56. GlaxoSmithKline

57. Stock Data
Market Cap Rs179.4bn/US$4.0bn
Share Outstanding 84.7
52-week Range (Rs) 2478/1842
Free Float(%) 49.3
FII(%) 16.8
Sensex Return 12m(%) 5.2

58. IN T R O D U C T IO N
GSK Pharma is the 4th largest formulations company in
India, with a strong presence in segments like
dermatology, respiratory and vaccines. Its parent has
one of the richest product and R&D pipelines among
Pharma companies worldwide .T h e c o m p a n ie s in t h e
p r o c e s s o f e x p a n d in g it s p r e s e n c e in t h e
l if e -s t y l e s e g m e n t l e d b y n e w l a u n c h e s
f r o m t h e p a r e n t 's p o r t f o l io , l a u n c h o f
b r a n d e d g e n e r ic s a n d in -l ic e n s in g .

59. GSK Pharma is a 50% subsidiary of GSK Plc ( UK) and is
being currently managed by Dr. Hasit Joshipura ( MD) .
Maintaining a leading presence in India and sustaining one
of the highest p r o f it a b il it y a n d r e t u r n
r a t io s in t h e in d u s t r y d e s p it e m in is c u l e
p r e s e n c e in t h e h ig h -g r o w t h l if e -s t y l e
s e g m e n t s is t h e k e y a c h ie v e m e n t .

60. SPECIALLTY OF BUSINESS
GSK derives majority of its business from acute
therapeutic s e g m e n t s a n d h a s v e r y l it t l e
p r e s e n c e in t h e c h r o n ic s e g m e n t s .
G S K d e r iv e s 9 5 % o f it s r e v e n u e s f r o m a c u t e
t h e r a p e u t ic s e g m e n t s w it h d o m in a n t
p r e s e n c e in An t i-in f c e t iv e s , d e r m a t o l o g y ,
p a in m a n a g e m e n t a n d V it a m in s .
It r a n k s n o .1 in d e r m a t o l o g y s e g m e n t , n o .3
in P a in man agemen t an d V it a m in s
s e g m e n t s a n d n o 5 in AI a n d r e s p ir a t o r y
segments.

61. SPECIALLTY OF BUSINESS
G S K is a m o n g t h e l a g g a r d s w h e n it c o m e s t o
laun ch o f n ew p r o d u c t s . GS K h a s
laun ch ed very few n ew pro d ucts o ver th e
l a s t 4 y e a r s c o m p a r e d t o it s p e e r s .
It h a s l a u n c h e d 5 n e w p r o d u c t s (in c l u d in g
l in e e x t e n s io n s ) a n n u a l l y o v e r t h e l a s t 4
years .
R a m p -u p in d o m e s t ic f o r m u l a t io n s r e v e n u e s
is d r iv e n l a r g e l y b y e x is t in g p r o d u c t s .
.

62. SPECIALLTY OF BUSINESS
N e w l a u n c h e s : G S K l a u n c h e d t w o in n o v a t iv e
p r o d u c t s , n a m e l y Revol e (o r a l
ad platelet
gen erato r) an d Votrient (o n c o l o g y ) in
Ju l y ’1 1 .
In a d d it io n , t h e c o m p a n y h a s a l s o laun c h a
bran d ed g e n e r ic a n d a d e r m a prod uct
f r o m t h e S t ie f e l p o r t f o l io .
GS K r e m a in s o n t r a c k t o laun c h e ig h t
b r a n d e d g e n e r ic s in C Y 1 1 .

64. Prescription ranking of GSK

65. Top 10 brands of GSK

66. VALUATION
Year to Dec CY 09E CY 10E CY 11E CY12E
12
Net Revenue(Rs mn 19078 21511 25146 28798
10
Net Profit (Rs mn) 5097 5606 703 8415
8
Dil.EPS(Rs) 59.1 68.3 83.9 99.3
Column 1
6 Column 2
Column 3
% Chg YoY 8.1 15.5 22.8 18.5
4
P/E(X) 35.9 31.1 25.3 21.4
2
EV/EBITDA(X) 23.9 20.9 16.4 13.3
0
Row 1 Row 2 Row 3 Row 4

67. Distribution and Reach
GSK derives 60% of its revenue from metros and Class-I
towns compared with an industry average of 63% .
O v e r t h e p a s t f o u r y e a r s r e v e n u e C AG R
f o r a l l g e o g r a p h ie s h a s l a g g e d the
in d u s t r y a v e r a g e . H o w e v e r , G S K 's C Y 1 0
g r o w t h in a l l g e o g r a p h ie s w a s in h ig h e r
d o u b l e d ig it s .

69. Improvement in MR productivity
G S K 's r e v e n u e p o s t e d C AG R o f 8 .7 % o v e r
C Y 0 4 -1 0 a n d it s s a l e s f o r c e p o s t e d C AG R
of 5 .9 % over C Y0 4 -1 0 , im p l y in g
im p r o v e m e n t in s a l e s f o r c e p r o d u c t iv it y .
In 2 0 0 4 , G S K d e r iv e d IN R 6 .5 m r e v e n u e p e r M R ,
w h ic h r o s e t o IN R 7 .7 m in C Y 1 0 . G S K 's
c u r r e n t M R p r o d u c t iv it y is a r g u a b l y o n e
o f t h e b e s t in t h e in d u s t r y .

71. Cadila Healthcare

72. STOCK DATA

73. Cadila is amongst one of the largest domestic pharma
companies in India with a strong focus on the global
INTRODUCTION
generics opportunity.
Th e c o m p a n y is g r a d u a l l y b u il d in g it s
p r e s e n c e in t h e r e g u l a t e d g e n e r ic markets
beginning with the US and France It a l s o p l a n s t o
t a p s o m e u n iq u e o p p o r t u n it ie s t h r o u g h it s
Jv s w it h N y c o m e d , H o s p ir a .B a y e r a n d
Bh a r a t S e r u m s .
It is p r o m o t e d b y Mr. Pankaj Patel.
H is k e y a c h ie v e m e n t is S u s t a in in g s t r o n g
g r o w t h a n d r e t u r n r a t io s c o u p l e d w it h a
v e r y c o n s e r v a t iv e , l o w -r is k m a n a g e m e n t .
.

74. SPECIALLTY OF BUSINESS
Cadila is among the top three players in two of the largest
therapeutic segments, CVS and GI.
The company ranks first in the fast growing gynecology
Segment.
C a d il a 's in t e r n a t io n a l b u s in e s s , g iv e n it s
s t r o n g c h e m is t r y s k il l s a n d p r a g m a t ic m ix
of it s g e o g r a p h ic presence an d
p a r t n e r s h ip s .

76. The top 3 therapeutic segments, CVS, GI and gynecology,
Prescription ranking of Cadila
contribu about half of Cadila's domestic formulations
revenue. Ot h er lar g e s eg m e n t s u c h as
r e s p ir a t o r y a n d a n t i-in f e c t iv e ,
c o n t r ib u t e 1 1 % a n d 1 0 % r e s p e c t iv e l y t o
t o t al r ev en u e. Ov er t h e p as t 1 0 ye ar s ,
t h e c o n t r ib u t io n o f C V S a n d G Is e g m e n t s t o
r e v e n u e r o s e f r o m 2 4 % t o 3 7 % w h il e t h a t
o f r e s p ir a t o r y a n d a n t i-in f e c t iv e
s e g m e n t s f e l l f r o m o v e r 3 2 % in F Y0 1 t o
l e s s t h a n 2 1 % in F Y1 0 .

77. Prescription ranking of Cadila

78. Distribution and Reach
Cadila derives 65% of its revenue from metros and class-I
town compared with 63% of the industry average. In the
past four years, revenue CAGR for all geographies except
metros were in line or marginally better than that of the
industry average.

80. Valuation FY10 FY11 FY12 FY13
summary
EPS(IN Rs) 24.7 37.7 40.5 52.9
PE(X) 35.4 25.2 21.6 16.5
Target PE(X) 38.6 27.5 23.6 18
EV to 24.8 20.5 17 12.6
EBITDA(X)
Price to 11.8 8.9 6.8 5.2
book(x)
RoNW(%) 37 38.7 34.3 34.7

81. Improvement in MR productivity
Cadila's domestic formulations business revenue posted
9.2% CAGR over FY04-10 and its sales force posted
11.3% CAGR, implying negative productivity of the
workforce.
In 2004, Cadila derived sales of INR4.1m per MR, which fell
to INR3.6m in FY10.
Cadila's performance was below average, compared with
the average of performances covered in the report .
.

83. THANK YOU