1 / 52

Marksans Pharma Limited Investor Presentation February 2008

Marksans Pharma Limited Investor Presentation February 2008. Disclaimer.

don
Download Presentation

Marksans Pharma Limited Investor Presentation February 2008

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Marksans Pharma LimitedInvestor PresentationFebruary 2008

  2. Disclaimer • Materials and information provided during this presentation may contain ‘forward-looking statements’. These statements are based on current expectations, forecasts and assumptions that are subject to risks and uncertainties which could cause actual outcomes and results to differ materially from these statements. • Risks and uncertainties include general industry and market conditions, and general domestic and international economic conditions such as interest rate and currency exchange fluctuations. Risks and uncertainties particularly apply with respect to product-related forward-looking statements. Product risks and uncertainties include, but are not limited, to technological advances and patents attained by competitors, challenges inherent in new product development, including completion of clinical trials; claims and concerns about product safety and efficacy; obtaining regulatory approvals; domestic and foreign healthcare reforms; trends toward managed care and healthcare cost containment, and governmental laws and regulations affecting domestic and foreign operations. • Also, for products that are approved, there are manufacturing and marketing risks and uncertainties, which include, but are not limited, to inability to build production capacity to meet demand, unavailability of raw materials, and failure to gain market acceptance. • The Company undertakes no obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

  3. Contents Section 1 Highlights Section 2 Industry Overview Section 3 Company Overview Section 4 Strategy Section 5 Financial Highlights

  4. Highlights • Mumbai based vertically integrated player with strong presence across the entire value chain - APIs to formulations to biopharmaceuticals • Incorporated in 2001 as a wholly owned subsidiary of Glenmark Pharmaceuticals Ltd. and later spun-off into a separate entity in March 2003 • Straddles across key therapy areas and markets its products in both evolving and developed markets • Actively engaged in R&D and offers CRAMS to global pharmaceutical companies • Operates world class manufacturing facilities for API and Formulations, built per US FDA guidelines and approved by UK MHRA, Australia TGA and Brazilian ANVISA health authorities • Reported sales of USD 63.4 million and net profit of USD 1.75 million in FY2007

  5. INDUSTRY OVERVIEW

  6. The Global Pharmaceutical Market • Worldwide pharmaceutical market expected to grow at 5-6% to USD 665-685 billion in 2007 • Moderate growth in the US and EU markets • Asia and Latin America are growth drivers • Expiry of patent protection driving Generics market – In 2008, products with sale value of more than USD 20 billion are likely to lose patent protection Leading Therapy Classes by Global Sales, 2006 Source: IMS Health

  7. Indian Pharmaceutical Market • India is one of the fastest growing large pharmaceuticals market • India is also the world’s fourth largest producers of pharmaceuticals by volumes • Competitive Advantage: • Upfront capital cost lower by 25-30% • Clinical trials cost 50% less • Drug production cost lower by 40-50% • Contract Research & Contract Manufacturing (CRAMS) • India has emerged as a key destination for CRAMS • Global manufacturing outsourcing opportunity is estimated at USD 20 billion • Formulations constitute about 78% of total sales. 32% of formulation sales are exports Projected Indian Pharmaceutical Market, 2007-2012 (USD Billion) Source: Espicom India Pharmaceuticals Market 2007 Source: www.indiahealth.com

  8. COMPANY OVERVIEW

  9. Marksans Pharma Limited • Marksans Pharma Limited is a niche Formulations, Bulk drugs and Biopharmaceutical player with presence across the entire value chain • Incorporated in 2001 as a wholly owned subsidiary of Glenmark Pharmaceuticals Ltd. and later spun-off into a separate entity in March 2003 • The Company straddles across key therapy areas and actively engages in R&D and offers CRAMS to global pharmaceutical companies • The Company is listed on The Bombay Stock Exchange and the National Stock Exchange of India Limited with a market capitalisation of Rs 9.24 billion (USD 234 million) as of 8 February 2008 • The Company has an employee strength of 1296 out of which more than 100 are engaged in R&D • Reported sales of Rs 2,399 million (USD 60.7 million) and net profit of Rs 69.3 million (USD 1.75 million) in FY2007

  10. Business Overview API Manufacturing • DOMESTIC MARKET • Niche Focus • Large Product portfolio • NDDS, NCE • In-licensing FORMULATIONS Pharmaceuticals + Biologics BIOLOGICS Marketing A Complete R&D Player EXPORT MARKET Supply tie-ups Joint marketing CRAMS Out-licensing ANDA Filings And Dossier Development Clinical Trials Formulation Development & NDDS DMF/COS Filings and Dossier Development Custom Chemical Synthesis Drug Discovery & Development Services

  11. Business Segments Revenues (Rs millions) FORMULATION • Significant presence in major therapeutic areas in the domestic market with over 250 products • Strong marketing capabilities with 450 representatives across India • Foreign markets: US, EU, UK, Australia, and other emerging markets. Plans in place to tap huge Russian and CIS markets • Collaborations: MPL’s products are available through collaborations with big MNC companies • ANDA filings: List of proprietary products identified which are to be developed post patent expiry - Is filing 10 ANDAs with US FDA by June 2008 • Combination of organic and inorganic growth ACTIVE PHARMACEUTICAL INGREDIENT • Second largest producers of Ciprofloxacin and Ranitidine in India Revenues (Rs millions) • Provides contract manufacturing services to world’s leading generic pharmaceutical companies • Key Focus Area: CVS, Ant diabetic, CNS, Pain management& Gastro Intestinal • Expanding production in CNS, CVS, anti-diabetic and pain management therapeutic segments • Capacity expansion already underway to meet domestic demand

  12. Business Segments RESEARCH AND DEVELOPMENT • State of the art R&D laboratory at Goa (approved by DSIR) and New Delhi for innovation in the area of new molecule and formulation development and drug delivery • New research laboratory set up at Kurkumbh to provide chemical synthesis and development services • The company is also working towards developing API's which are likely to go off patent in the next few years as their market size is estimated at USD 20 billion • Joint product development pacts in place with reputed international and local institutions for biopharmaceuticals GENERIC DRUG DEVELOPMENT PIPELINE • Filing 10 ANDA’s with USFDA by June 2008, having aggregate market size of 17 billion in US, into CVS, CNS, Pain management & Gastro Intestinal Segments

  13. Manufacturing Capabilities FORMULATION • Marksans state of the art manufacturing facilities in Goa are of international standards adhering to stringent quality norms and are USFDA compliant. Its world class manufacturing capabilities cater to APIs as well as formulations. • Adhering to USFDA guidelines with approvals from UK MHRA, Australian TGA and Brazilian ANVISA health authorities • One of the biggest manufacturing facility for soft gelatin capsules and tablets in Asia (Capacity of 2.50 billion tablets/line/annum for tablets, 4.8 billion capsules / line / annum) respectively ACTIVE PHARMACEUTICAL INGREDIENT • Marksans has two large multi-product API manufacturing facilities located at Kurkumbh, Maharashtra which are re-benchmarked to CGMP standards • USFDA approval expected in next 9-12 months • MPL has increased the annual capacity of its flagship product Ciprofloxacin from 600 MT to 1000 MT and for Ranitidine from 360 MT to 600 MT

  14. Recent Acquisitions HALE GROUP - UK • The Company has entered into a share purchase agreement with UK's Hale Group to acquire its entire share capital, along with its subsidiary company Bell Sons & Co (“Bell”) • Bell is a well-established manufacturer of a broad range of OTC pharmaceuticals having full approval of the UK MHRA and currently holds 38 product licenses. Licensed products contribute over 45% of Bell’s total turnover • The company clocked a turnover of £ 8.03 million and £ 8.94 million respectively for FY’05 and FY’06 (year ending December). The EBITDA margins for the said period stand at 12% and 14% respectively • Rationale: Bell is an established player with strong goodwill Access to the regulated UK & Europe market Synergies and cost saving in manufacturing and R&D NOVA PHARMACEUTICALS - AUSTRALIA • MPL acquires Nova Pharmaceuticals (NP), a company that specializes in R&D and marketing of generics • NP has a basket 14 products, with additional 25 products filed for TGA approvals • NP has presence in the top pharmacies and major chain stores for the supply of generics and OTC • Rationale: Gain foothold in a key pharmaceutical market New product introduction and cost saving by shifting production to India

  15. STRATEGY

  16. Vision Strategy aimed at differentiation, high margin niche areas, life cycle extension and product innovation Multi-product, multi-specialty, multi-geography, fully integrated enterprise Global strategy – global alliances, innovator partnerships collaborative R&D, licensing deals, M&A Business expansion – CRAMS Innovation & Value Chain Traversal Product Innovation – reformulation, Controlled release Vertical Integration Therapeutic area expansion – critical care, respiratory, CNS, anti-infectives, immunology, life style, neutraceuticals Product expansion – NCEs, biologics, controlled /high potency substances Geographic expansion – Semi and Regulated Markets Niche Player Integrated Player Enterprise Maturation Current State Future State

  17. Geographical Strategic Goals • Europe, US & Emerging Markets • Become preferred manufacturing partner for large MNC pharma companies • Establish a strong presence in the US generic pharmaceutical market through acquisition of a target company to exploit MPL’s low cost API, drug formulation and R&D capabilities • Focus on building IP assets specially in Niche dosage forms • Out-License IP to drive growth / scalability • Build and launch portfolios of generic products in niche segments, technology driven products. In parallel, seek out newer markets with potential • Build significant OTC presence in regulated markets • Integrating & leveraging acquired company strengths to fuel internal growth • India • Become a top 10 fully integrated pharmaceutical company with a diverse portfolio of ethical, branded, generic and OTC products • Continue building presence in speciality markets such as oncology and CNS • Continue evolution as an innovative developer of patented, NDDS, and in-licensed products (RISUG, GCSF, EGF) and post-patent products

  18. Key Growth Drivers Rapid filing of ANDAs / MAs, DMFs/COSs into US, Europe & Emerging Markets Expand CRAMS services in the Regulated Markets Acquisitions of growing, profitable pharmaceutical companies and/or products. Commercialize strong pipeline of over 10 new API products Leverage economies of scale and integrating API and formulation manufacturing Pursue additional product in-licensing opportunities for domestic markets Enter into out licensing arrangements with big pharma company in US, Europe to manufacture & market post patent & off patent drugs

  19. Strategy THRUST ON EXPORTS DOMESTIC FORMULATIONS CRAMS BIO PHARMACEUTICALS R&D – NCE PIPELINE

  20. Thrust on Exports • VISION: To become a leading player for APIs and formulations supply to global companies • COMPETITIVE EDGE: Vertical integration from R&D to API to formulations • NORTH AMERICA: Aggressive roadmap to develop sales and distribution network Remain focused on high value of generics Organic and inorganic buildup of portfolio • EUROPE: Tie-ups in place with top 7-8 generic formulations companies for CRAMS Focus on selected market – UK, Germany, Central and East EU UK Acquisition: £8-10m sales with strong product pipeline and brand equity • AUSTRALIA: Acquired a marketing company with basket of 14 products, with additional 25 products filed for TGA approvals • EMERGING MARKETS: Expanding to countries and across products

  21. Domestic Formulations CURRENT STATUS AND STRATEGY • Mark Remedies caters to the GI disorders and Respiratory infections segment. This is a mass segment category with promises of large volumes • Enhance presence in Oncology and creating a base in lifestyle therapeutic segments • Focus on Biotechnology drugs, antineoplastics and immunomodulators • In-licensing to be one of the major growth drivers

  22. Biopharmaceuticals CURRENT STATUS • Number of in-licensing / joint R&D agreements in place with international agencies and local research institutes for product development and / or marketing • Some of the products approved / under development • Interferon Alpha 2b: world market ~ USD 1 billion • Granulocyte Colony Stimulating Factor (GCSF): World market ~ USD 2 billion • Epidermal Growth Factor (EGF) - NDDS • Interlucin 2 STRATEGY • Aggressively scouting for more in licensing opportunities with the innovator companies • Increase the marketing infrastructure on PAN India basis to market the products

  23. Research & Development • ~ 45 products already developed. > 40 products under development • Building IP assets and registering them internationally • Focus on end to end solutions, to develop core API’s for ANDA products in-house. • Concentrating on development of Niche Liquid gel products • Leveraging expiry of patents: developing products for growth areas such as cardiovascular and anti diabetics • Tie ups in place with big MNC & Generic companies for first to launch status on many products following patent expiration • Joint product development pacts in place with reputed international and local institutions for biopharmaceuticals MPL is already working on two NCEs in collaboration with Original patent holders, along with Indian Council of Medical Research, Govt. of India

  24. CRAMS CURRENT STATUS • The Company has alliances with the top 7-8 MNC generic companies for contract manufacturing of ~ 30 generic products for the European markets • Licensing agreements in place with numerous companies for development and supply of products for 7-10 years STRATEGY • The company plans to enhance its product portfolio with the addition of 12-13 products p.a. • Offering CRAMS services for existing and emerging markets is envisaged as one of the major driver and revenue earner for the company

  25. FINANCIAL HIGHLIGHTS

  26. Financial Highlights PROFIT AND LOSS USDINR 39.5

  27. Financial Highlights BALANCE SHEET USDINR 39.5

  28. Background for FY2007 Results KEY REASONS • Stiff competition in APIs namely Ciprofloxacin and Ranitidine due to dumping from China • Price erosion ~ 35% • Reduced production in these APIs resulted in decrease in sales STRATEGY ADOPTED • COS approval obtained for Ciprofloxacin, expected for Ranitidine & Metformin shortly to enable exports to Europe with 50% more margin • More high value products like Losartan, Metformin, Naproxen, etc with COS Filings • US FDA approval expected for all these products • Focus on high growth life style segment formulations mainly in domestic market, which are exhibiting strong growth rates • Integrating API operations with formulations OUTCOME • Extremely bullish trend in domestic life style segment • Rise in prices of Ciprofloxacin, Ranitidine in China • MPL’s CRAMS business in Europe is growing • 20 ANDA filings expected by Dec 08 and 30 by Dec 09, resulting in Business from USA in excess of US$ 100 million in FY 2011-12 • Exclusive Out licensing arrangements with leading generic companies to give a boost to its Exports

  29. Equity Capital Structure USDINR 39.5

  30. Investment Highlights • Fully integrated company with strong presence across entire value chain from APIs to formulations to biopharmaceuticals and across key therapy areas and both the evolving and developed markets • Strong R&D focus strategically positions MPL in the new patent regime • Aggressive foray into new geographies and regulated markets through acquisitions (UK and Australia) to expand global footprint • Focus on high-growth therapeutic segments such as lifestyle, anti-diabetic, cardiovascular to advantage from strong demand from US and EU markets • Thrust on Biotechnology: Entered the lucrative segment with 8 products in the pipeline of which 3 are already approved by Drug Controller of India • World class manufacturing facilities and strong marketing and distribution network in India

  31. THANK YOU

  32. API Formulations R&D • Two manufacturing facilities. • Strategy to focus on end-to-end solutions and to develop APIs for ANDA products in-house. • Rapidly filing COSs/DMFs into Europe and US markets. • Exporting its products to more than 30 countries. • Provides API contract manufacturing to many of the world’s leading generic pharmaceutical companies. • Key focus areas • CVS • Anti-diabetic • CNS • Pain Management • GI • Expanding its API business by shifting from predominantly domestic market to highly regulated markets of USA and Europe. • World class manufacturing facilities: approvals - UK MHRA, Australian TGA. US FDA approval expected shortly. • Tie-up with big MNCs globally for offering CRAMS. • Product basket covering wide therapeutic areas. • Developing post-patent products mostly supported by in house API’s for global markets. • Out-licensing tie-ups with big pharma companies for long term manufacturing and marketing. • Setting up own front ends in major global markets – US, Europe, Australia, Russia and emerging markets. • Strong marketing presence in the domestic markets - wide range of over 250 products in the domestic markets. • Speciality segment focus in domestic market. • Specialised state of the art Soft gel manufacturing plant. • Expanding registration process across geographies • DSIR approved research labs in Goa, Pune and New Delhi. • Key focus on: • Building IP assets and their global registration. • End to end solutions , to develop core API’s for ANDA products in-house. • Development of technology driven products for the global markets (Sustained release, extended release and Soft gel delivery systems). • Development of Niche Liquid gel products (Differentiating plank as very few key players offer the same). • Tie ups in place with big multinationals & Generic companies for first to launch status on many products following patent expiration. • MPL is already working on two NCE’s in collaboration with Original patent holders, along with ICMR, Govt. of India. APPENDIX Company’s Operations

  33. SWOT Strengths Opportunities World class fully integrated manufacturing facilities Strong research & regulatory capabilities Continuous identification and launch of new markets to expand geographies Market leader position in certain key bulk drugs with strong presence in exports Highly competent, experienced and professional management team Strong R&D skills so as to enable in-house product development Strong marketing platform for pan-India presence Strong development pipeline to cater to company’s future growth • Regulated markets, API and formulations • CRAMS for Global markets • Lifestyle therapeutic segment in domestic market • Increasing rural penetration in domestic markets Threats • Attrition. • Competition • R&D speed and managing launch • Changing regulatory requirements Weaknesses • API operations were focused on Ciprofloxacin and Ranitidine which have suffered substantial price erosion

  34. BUSINESS SEGMENT -Capabilities across the value chain Innovator Products (NCE, Inorganics, NDDS) Drug Discovery R&D Preclinical Research Clinical Research Marksans Footprint ANDAs, DMFs/COSs Post Patent Filings Process Engineering Synthetic Chemistry Custom Synthesis Contract Research Pharma Development Contract Manufacturing Innovation & Value Chain Traversal Product Patent Formulations Global Exports (Regulated Markets) Regulatory Approvals / services (US FDA, UK MHRA, EDQM, TGA, ANVISA) Strategic Alliances & Partnerships In-house R&D (Goa, Pune, IITD) First-to-file (Para IV) Global Acquisitions In-/Out-Licensing deals Bulk Actives (API) Drug Intermediaries Process Engineering 1970 2005 2010 Industry Maturation (Value Creation)

  35. BUSINESS SEGMENT -GlobalFormulations • Global Foray: Key features: • Main markets: US, Europe, United Kingdom, Australia, and other emerging markets. Plans in place to tap huge Russian and CIS markets. Initiated dossier filling in these countries • Collaborations: MPL’s products are available through collaborations with big MNC companies • Quality Manufacturing: Its robust product basket and quality control measures as well as manufacturing accreditations such as UK MHRA and Australian TGA approved facilities enable MPL to establish its presence in the global markets • ANDA filings: List of proprietary products identified which are to be developed post patent expiry - It is filing 10 ANDAs with US FDA by June 2008 • Sales Front ends: Rapidly built up a generic sales front end in the USA with investments in sales distribution. • Acquisitions & approvals: The Company intends to grow inorganically in the global markets: • Already acquired an Australian company - Nova Pharmaceuticals. MPL plans to grow inorganically in the US and Europe markets as well • Already received approval for 5 products in Australia • With a strong focus on the US markets, the company has entered into an agreement with Pharmgen LLC, US for the development and filing of 11 ANDA's. The product list is a mix of off-patent and post patent protected molecules with cumulative annual sales of about USD 17 billion in the US

  36. BUSINESS SEGMENT -Domestic Formulations • Coverage and Divisions • Significant presence in major therapeutic areas in domestic market • Wide range of over 250 products in the domestic markets (80 feature in the ORG list) • These products are marketed through 5 distinct divisions as enumerate below: • Marketing Capabilities: • Pan India Field force of ~ 450 MRs • Carved a distinctive image for its products with innovative and aggressive marketing strategies

  37. BUSINESS SEGMENT -API Second largest producers of Ciprofloxacin and Ranitidine in India (Both COSs filed). Together the Ciprofloxacin Hydrochloride and Ranitidine Hydrochloride rank amongst the top 20 highest selling drugs in the world. COS already received for Ciprofloxacin Provides API contract manufacturing services to world’s leading generic pharma companies Key Focus Area: CVS, Ant diabetic, CNS, Pain management& Gastro Intestinal The company is addressing antibiotic and antiulcerant therapeutic segments and in the process in expanding production into CNS, CVS, anti-diabetic and pain management therapeutic segments which are growing radically. These segments are estimated to be worth approximately US $ 20 billion over the next five years In the domestic markets MPL has embarked on ambitious expansion projects to scale up its existing capacity, to enter new therapeutic segments covering high growth lifestyle-related diseases MPL has reputed clientele and has been supplying and exporting its products regularly to big pharma companies & to various countries like Japan, Latin America, Bangladesh, Spain, Egypt, Jordan, Iran, Mexico, Germany and Africa

  38. BUSINESS SEGMENT -API Strategy • Expanding its API business by shifting from predominantly domestic market to the highly regulated markets of US and Europe • New API’s to be developed based on key products for formulation development with focus on Post patented Products • Develop several API’s to provide cost and time advantage to complement MPL’s US and Europe generic filings • Continue to be the preferred third party API supplier to the generic industry • Rapidly file COSs/DMFs into Europe and US markets (5 DMFs and 5 COSs in 2008-09) • New Product introductions: • Commenced commercial supply of new products during the year • Several validation pivotal batches have been sent to global generic players for their dossier filings

  39. MANAGEMENT - Organization Chart Board of Directors MD & CEO Formulations API R&D/RA CFO Head HR Domestic Manufacturing Formulation Purchases Global Sales API Distribution Manufacturing RA CS and Legal Accounting, taxation and IT

  40. MANAGEMENT -Board of Directors Mr. Mark Saldanha – Managing Director & CEO V Nagraj – Wholetime Director Dr. Kim Tan – Director, nominee of Springhill Bio-Venture Fund Mr. Ajay Mittal – Director, nominee of UTI Venture Fund Mr. Mahesh Parekh - Independent Director Mr. Kumar Nair - Independent Director

  41. MANAGEMENT -Promoter The Company was set up by Mr. Mark Saldanha, a first generation entrepreneur and is rapidly expanding its business operations Mark Saldanha Managing Director & CEO Mr. Mark Saldanha, was associated with Glenmark Pharmaceuticals Ltd. as a whole time director and was instrumental in the growth of the company in mid and late nineties, before promoting this venture. He is well versed in the overall management of the company and has vast experience in managing the marketing, production and finance function of the company The Promoter is currently engaged in the Pharmaceutical business only

  42. MANAGEMENT -Key Management Personnel

  43. PRODUCT RANGE - Cerebella: CNS (Neuro - Psychiatry) • Introduction • Division dedicated to neurosciences for treatment of psychiatry and neurological disorders • This market is poised for rapid growth due to lifestyle changes and growing awareness • Vision • To achieve a growth of 100% in the turnover by 2010 • Be amongst the top 5 players over a period of five years • Segment addressed • Antipsychotic • Antidepressant • Antiepileptic • Anxiolytic • Memory Enhancer • Stroke

  44. PRODUCT RANGE -Criticare: Oncology + Critical care • Introduction • Globally Oncology is the fastest growing therapeutic segment • MPL is carving out a niche position in Oncology through its Criticare division • Criticare division focuses on Cardio care and Life saving higher end antibiotics • In - licensing is expected to be the key growth driver for this division • Vision • Marksans to have the first mover advantage of introducing First time niche molecules like EGF,IL2, Oncophage, INF-Gel,EPO and Cancer Vaccine under this division. In-licensing products like Enoxaparin are to be the key growth drivers for cardio care • Biotechnology drugs, antineoplastics and immunomodulators to be the front runners • To launch one to two in-licensed biotech products every year in the domestic market through its Criticare division • To capture 4% of Indian Oncology market by 2010 & 6% of domestic Critical care market by 2010

  45. PRODUCT RANGE -Mark Remedies • Introduction • A multi- specialty division dedicated to GI disorders and Respiratory infections • ~ 40% of domestic pharma market of Rs 28,000 crore is attributed to these two disorders • MPL markets Prescription/Ethical products focused on women's health, geriatric disorders, internal medicine, nutritional support and lifestyle disorder associated with gastro-intestinal, cardiology and diabetology under this division • Vision • To reach a turn over of INR 37 crores and emerge as a strong player in the segment • Segment Addressed • Gastro, Respiratory, Antibiotics, Gynaecology + Others

  46. PRODUCT RANGE -Zenmark and Marksans: GP & Institutions These divisions are focused on branded generic products and OTC and have 150 products covering almost the entire Pharmaceutical segment They mainly cater through tender business to private hospitals, government hospitals, public sector undertakings, AFMSD, Indian Railways, Port Trust, etc The current product range contains wide spectrum of products to capture maximum business in Institutional sector The current business is around Rs. 40 Crore The basket includes orals, parentrals and topicals Health insurance is gaining wide acceptance and will further give an impetus to Institutional business

  47. Biopharmaceutical Pipeline

  48. ACQUISITION - Hale Group: Overview Marksans Pharma has entered into a share purchase agreement with UK's Hale Group to acquire its entire share capital, along with its subsidiary company Bell Sons & Co (“Bell”). Marksans is acquiring Hale through its 100% subsidiary Marksans Pharma UK. The company is equally owned via the holding company by Philip Hale and Linda Shepherd Bell is a well-established manufacturer of a broad range of OTC pharmaceuticals having full approval approval of the UK MHRA and currently holds 38 product licences. Licensed products contribute over 45% of Bell’s total turnover Bell manufactures licensed products both as own branded products and, for certain customers, in own label form together with a range of unlicensed products. Customers include retailers, pharmacies, chemist wholesalers and cash and carry outlets The company employs 106 people at its freehold licensed manufacturing site in Southport, Merseyside and has further 12 employees providing sales administration, buying and technical support The company had clocked a turnover of £ 8.03 million and £ 8.94 million respectively for FY’05 and FY’06 (year ending December). The EBITDA margins for the said period stand at 12% and 14% respectively

  49. ACQUISITION -Hale Group: Products • Product Basket: • Cough and cold remedies • Galenicals • Vitamins • Palliative and healthcare items • Oils • Antiseptics and disinfectants • The Company currently holds 38 product licences registered with MHRA. Licensed products contribute over 45% of the Company’s turnover • Under the OTC pharmaceuticals, the Company supplies its “own label” pharma products to all of the UK’s leading supermarket chains. The own label market now accounts for more than 45% of the Company’s total turnover

  50. ACQUISITION -Hale Group: Markets • The company is a preferred supplier to more than 300 customer all over the country, including the leading retail sector brands and major chemist wholesalers • UK markets represents 80% of the customer base and two third of total sales. The company’s largest customer accounts for 6% of total sales only. Thus the business is not customer centric • The Company has been in the export markets for more than 80 years now. Its products are well recognised and respected in the overseas markets • The company products are sold in more than 40 countries. Key markets are West Africa and Middle East

More Related