cadila healthcare limited

Manshakaur Dhillon - 91Darshit Ajmera - 92Mayura Joshi - 93Swati Agarwal - 94Mohid Cutterwala - 95

Cadila Healthcare Limited

MET’s ICS

Indian Pharma Industry

4/9/2013Economics

Growing at about 8% to 9% annually.

It meets around 70% of the country's demand.

Reasons for rising demand for pharma products :1. Low drug penetration2. Rising middle-class & disposable income3. Increased government & private spending4. Increasing medical insurance penetration etc.

MET’s ICS 4/9/2013Economics

Globally, India ranks 3rd in terms of manufacturing pharma products by volume.

McKinsey & Company’s report, predicted that the Indian pharmaceuticals market will grow to US$55 billion in 2020

With aggressive growth strategies being implemented, it has further potential to reach US$70 billion by 2020

Cadila healthcare - Overview

4/9/2013MET’s ICSEconomics

Established in 1952 - Headquartered in Ahmedabad, Gujarat.

Ranked 5th in the domestic market.

Company evolved over the next four decades into one of India's renowned pharmaceutical companies.

Cadila Healthcare became the Patel family's holding company in 1995 after the Modi families split


IPO on Bombay Stock Exchange in 2000.

Cadila manufactures a range of products:- 1. Formulations of active pharmaceutical ingredients (API)2. Intermediates3. Biologicals4. Animal healthcare products5. Consumer wellness products

Cadila has a global presence.


The group now has 81 patents and around 186 more pending.

The product will have estimated sales of USD 3 billion in 2015.

Cadila healthcare reported 1.33 % increase in net profit as on 7th August 2013 for the quarter ended June 30, 2013


In 2012-13,Cadila’s R&D expenditure as a percentage of turnover was 12.67%

It has a 950 member strong R&D team

The company undertakes R&D activities in - Generics formulations New molecular entities Novel drug delivery systems Biologics

Research & Development


Cadila has a pipeline of 15 biosimilars(officially approved subsequent versions of innovative biopharmaceutical products)

Cadila commissioned a manufacturing facility near Ahmedabad, which is catering to the global biosimilars business

MET’s ICS

R&D Expenditure break-up in2012-13 (in crores)

4/9/2013Economics

API & Oth-ers; 26.8

NMEs & Drug

Dis-cov-ery; 59.8

Gener-ics;

120.9

MET’s ICS

Break up of R&D team

4/9/2013Economics

21%

37%

42%APIs & OthersNMEs & Drug Dis-coveryGenerics


Cadila is focusing on new drug discovery research in line with its long-term vision to become a global research-

driven company by 2020.

It has built the state-of-the-art Zydus Research Center (ZRC) with a dedicated research team of over 950 research professionals.


Biologics - a key long-term opportunity given the intense competition in the global developed generics markets and the high entry barriers in the ‘Biologics’ field leading to lesser competition.

Vaccines – another niche opportunity.

The first achievement - the DCGI nod to start clinical trials of the vaccine for H1N1 Flu.

It is the first Indian company to get such approval.

MET’s ICS

Major collaborations in past few years.

4/9/2013Economics

Zydus - Hospira JV in yr 2009

Zydus - Abbott Laboratories alliance in yr 2010

Bayer Zydus Pharma in yr 2011

Zydus - IDRI in yr 2013

MET’s ICS

CSR Initiatives

4/9/2013Economics

Ramanbhai Foundation:

The Zydus School for ExcellenceOutreach programmesTheme - Colours of Life (to spread joy and happiness to the

community)Tree plantation drive - ‘Each one, plant one’It extends support during times of natural calamities.Social and Corporate Governance Award


74.79%

5.42%9.92%

9.87%

Pro-moterFIIDIIOthers

Shareholding pattern


Break-up of revenue

49%43%

8%

Domestic BusinessExport BusinessJV


Form

ulatio

ns

Wellness

Animal

healt

h API10

110

210

310

410

510

610581.8

103.349.5 10.8

625.2

115

49.4 20

Jun-12

Revenue from domestic business

Revenue from export business

Form

ulatio

ns APIs

Animal

healt

h & ot

hers

0

100

200

300

400

500

600

700595.2

65 11.6

626.9

65.813

Jun-12Jun-13


2009 2010 2011 2012 20130

20

40

60

80

100

120

140

160

90100

125

150 150

Equity Dividend%


23.09%

23.09%

20.30%

20.96%

23.36%

DIVIDEND PAYOUT RATIO

20092010201120122013


2009 2010 2011 2012 20130

0.2

0.4

0.6

0.8

1

1.21.08

0.910.88 0.89

1

Asset Turnover Ratio

2009 2010 2011 2012 20130

0.1

0.2

0.3

0.4

0.5

0.6

0.70.7

0.67

0.37

0.27

0.43

Debt Equity Ratio


2009 2010 2011 2012 20130

5

10

15

20

25

30

35

40

18.819.48

36.87

29.8132.11

Earnings Per Share

2009 2010 2011 2012 20130

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

10.93

1.4

1.63

1.22

Current Ratio


2009 2010 2011 2012 20130

100

200

300

400

500

600

700

236.2265.9

503.3

610.4657.5

Profit After Tax

MET’s ICS

Future Prospects

4/9/2013Economics

Beyond the Billion

VICA

PRISM

15 markets

India`s first Chemical Novel

MET’s ICS

Conclusion

4/9/2013Economics