Slides
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Suven Pharmaceuticals Ltd.…Going Above and BeyondInvestor Presentation Q3 and 9MFY25
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Pg. 2 Safe HarbourExcept for historical information, all of the statements, expectations andassumptions, including expectations and assumptions, contained in thispresentation may be forward-looking statements that involve a number of risksand uncertainties. Although Suven attempts to be accurate in making theseforward-looking statements, it is possible that future circumstances might differfrom the assumptions on which such statements are based. Other importantfactors which could cause these statements to differ materially includingoutsourcing trends, economic conditions, dependence on collaborativepartnership programs, retention of key personnel, technological advances andcontinued success in growth of sales that may make our products/servicesofferings less competitive; Suven may not undertake to update any forward-looking statements that may be made from time to time.
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Pg. 3 Table of Contents131604 31334329Combined Business: Proforma MetricsQ3 and 9MFY25 Proforma Operating and Financial PerformanceCombined Business: Key segment wise strategyESGFinancial Performance Q3 and 9MFY25AnnexureUpdate on Amalgamation of Suven Pharmaceuticals with Cohance Lifesciences
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Q3* and 9MFY25* Proforma Operating and Financial Performance*Proforma basis subject to the proposed amalgamation of Cohance Lifesciences
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Pg. 5 Executive Summary Strategic Vision and Key Updates•Suven,a technology-driven CDMOwith aglobal footprint, is well-positioned to emerge as a global leader from India, leveraging structural tailwinds: advancing technologicalcapabilities, China+1, EU+1, and the BioSecure Act.•Targeting $1bnin revenue, driven by: a) A diversified growth strategy built on three key pillars —Pharma CDMO, Specialty Chemicals CDMO, and APIs+, ensuring steady and predictable growth, b) Increasing mix of differentiated modalities, including ADCs, oligonucleotides, and other emerging technologies, to accelerate growth and enhance business defensibility c) A programmatic M&A approach to acquire differentiated assets d) A professionally managed organization with a strong leadership•Over the past few quarters, we have prioritized team building, strengthening our R&D capabilities, built global commercial presence across the US, EU, & Japan, and streamlining backend operations. We are confident in the foundation we have built to drive long-term growthPerformance Highlights on proforma merged basis*•Growth trajectory reaffirmedwith Q3 and 9M FY25,in linewith our communicated expectationsoQ3: 40% YoYrevenue growth, with adjusted EBITDA margins at 38.7%.o9M: 5% YoYrevenue growth, with adjusted EBITDA margins at 34.8%.oGiven the lumpy nature of the Industry,business performance reviewed on an annual basis provides better assessment.•Business Segment Performance(individual business details on following pages)oPharma CDMOQ3: 101% YoY revenue growth; 9M: 11% YoY growth.Robust pipeline expansionwith 2x YoY increase in RFQs (9M), including new customers, laterals and new product categories; expanded commercial teamacross US& Japan16 commercial molecules with large pharma;Phase III pipeline strengthened - added two molecule : One molecule successfully advanced to Phase III,One newaddition to Phase III brings the total to15 Phase III projectsacross9 molecules.New customer onboarded:Atop-five global pharma leaderfor early-to-mid-phase projectsWe remain focused on expansion in ADC & Oligonucleotideswith fast underlying market growth; leveragingfront-end synergies.−Investments in cGMP facilities initiatedto scale up both businessesoSpeChem CDMOIn line with our communicated expectation, segment bottomed out in Q2; sequential recovery seen in Q3. Strategic efforts yielding early results.oAPI+ & OthersQ3:29% YoY growth;9M: 17% YoY growthOutlook:FY25E expected to grow YoY on a combined basis, with growth acceleration expected in FY26.Merger Update:Shareholder approval received (99.99% in favor); Final NCLT hearing on February 18; Merger expected to be effective in Q1FY26, subject to regulatory approvals (incl DoP)*Proforma basis subject to the proposed amalgamation of Cohance Lifesciences
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Pg. 6 Proforma Merged Earnings - Pharma CDMO drives growthProforma Suven + Cohance - Q3FY25 Performance:Combined platform reportedrevenue growthof40% YoYdriven byPharma CDMO.The Pharma CDMO business grew by 101% YoY to Rs 2.9bnAPI+ segment revenue grew 29%YoY.Spec Chem segment lower by 22%YoY. Significant recovery on asequential basis.Gross margins on combined basis at 71.5%.Adjusted EBITDA margins expanded by 960bps.Other Key highlights 9M Free cash flow of Rs 3.2 bn9M Cash on books at Rs 2.99 bnIn 9M, we have spent Rs 2.31 bn on capex.We have recently been honored with the title “WORLD’s BESTcompanies sustainable growth 2025” award by Times and Statista.Our facilities are audited for SA 8000:2014 certification, expect toreceive the status soon.On ESG front, we have submitted SBTi commitment for all threetypes of emissions. Revenue from operations (YoY)40%# Revenue Excl. Spec Chem(YoY)56%# Pharma CDMO (YoY) 101%# Total RevenueINR 6.8 bn Adjusted EBITDAINR 2.6bn* Adjusted Profit after TaxINR 1.7 bn* EBITDA% excl. one time 38.7% Adjusted PAT % 24.8%Q3FY25 Consolidated Financial Highlights Pharma CDMO42%Spec Chem CDMO12%API +46%Segmental Revenue Q3FY25 – CDMO share at 54% * Adjusted EBITDA and PAT includes one-time adjustments of INR 169Mn which comprises largely ESOP charges, merger and acquisition costs#Q3 includes consolidation of Sapala INR 113 mn and 12 days consolidation of NJ Bio INR 116MnProforma basis subject to the proposed amalgamation of Cohance Lifesciences
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Pg. 7 Q3FY25 Proforma Consolidated Financial results –Adjusted EBITDA margins at 39% YoYQ3FY25Q3FY24Particulars 39.6%6,7644,846Revenue from Operations(1,925)(1,718)Material costs / COGS54.7%4,8393,128Material Margin71.5%64.6%Material Margin %(675)(675)Manufacturing Expenses(1,193)(891)Employee Cost(575)(440)Other Expenses2,4432,007Total Expenses113.6%2,3961,122EBIDTA (Reported)35.4%23.1%EBIDTA (Reported) %5532FX MTM gain169258Onetime expenses85.5%2,6201,412EBIDTA (Adjusted)38.7%29.1%EBIDTA (Adjusted) %(409)(319)Depreciation & Amortization(108)(104)Finance costs139148Other income97.1%2,2421,137PBT (Adjusted)(561)(299)Tax(Adjusted)100.5%1,681838PAT (Adjusted)24.8%17.3%PAT Margin104.8%1,660811PAT (Reported)24.5%16.7%PAT MarginNote:1 Adjusted EBITDA includes One-time adjustment for ESOP, Merger and acquisition costs of Rs. 258 mn and Rs.169 Mn respectively for Q3FY24 and Q3FY25. •Q3FY25 reported 40% YoY growth supported byPharma CDMO and API+ revenue growth.•Gross margins expanded 699 bps YoY to 71.5%,supported by a favourable business mix androbust growth in Pharma CDMO and API+.•Adjusted EBITDA margins at 38.7%, reflecting thestrength of R&D and BD collaboration inaccelerating growth and focus on operationalefficiencies along with business mix.•Strategic talent investments continue to drivesustainable growth and long-term value creation.These costs have a lead effect and are yet to fullycontribute to earnings. Suven + Cohance* Consolidated Financials Proforma basis subject to the proposed amalgamation of Cohance Lifesciences INR Million
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Pg. 8 YoY9MFY259MFY24Particulars 4.7%17,69116,903Revenue from Operations(5,279)(5,667)Material costs / COGS10.5%12,41211,236Material Margin70.2%66.5%Material Margin %(1,847)(1,980)Manufacturing Expenses(3,310)(2,779)Employee Cost(1,552)(1,189)Other Expenses6,7095,948Total Expenses7.8%5,7025,288EBIDTA (Reported)32.2%31.3%EBIDTA (Reported) %11898FX MTM gain329594Onetime expenses# 2.8%6,1495,979EBIDTA (Adjusted)34.8%35.4%EBIDTA (Adjusted) %(1,044)(844)Depreciation & Amortization(306)(276)Finance costs430561Other income(3.5)%5,2295,420PBT (Adjusted)(1,251)(1,401)Tax(Adjusted)(1.0)%3,9784,019PAT (Adjusted)22.5%23.8%PAT Margin(0.9)%3,9163,953PAT (Reported)22.1%23.4%PAT Margin 9MFY25 Proforma Consolidated Financial results Balance Sheet HighlightsAs on 31st December 202428,519Shareholders' funds1,720NCI- Sapala + NJ Bio28,498Net Fixed assets(1,486)Other net assets1 137Net cash/(debt)2 3,090Total Use of FundsINR MillionINR Million Note: # Adjusted EBITDA includes One-time adjustment for ESOP, Merger and acquisition costs Rs.594 mn & 329 mn for 9MFY24 & 9MFY25 respectively. •Gross margins expanded by 365 bps to 70.2%.•Adjusted EBITDA margins stood at 34.8% withAdjusted EBITDA of Rs 6.15bn. 1) Other assets calculated as Inventories + Trade receivables +Non-current investments + Current tax assets + Other assets lessTrade payables + deferred tax liabilities + Other liabilities at theend of the year. 2) Net cash/(debt) calculated as the Cash & cashequivalents (Cash and bank balances + current Investments) lessTotal debt (Short-term and Long-term borrowings) at the end ofthe period. Suven + Cohance Consolidated Financials Proforma basis subject to the proposed amalgamation of Cohance Lifesciences
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Pg. 9 838 168117.3%24.8%Q3FY24 Q3FY25 Adjusted PAT (INR Million)Margin (%)Q3FY25 Proforma Business performance overview combined platform 4,8466,764Q3FY24 Q3FY25Operational Revenue (INR Million) 1,412 2,62029.1%38.7%Q3FY24 Q3FY25 Adjusted EBITDA (INR Million)Margin (%) 1,4292,873Q3FY24 Q3FY25Pharma CDMO (INR Million) 1,004781Q3FY24 Q3FY25Spec Chem (INR Million) 2,4133,110Q3FY24 Q3FY25API + (INR Million) Due to the nature of the CDMO business, Quarterly comparisons are not idealNote: 1) Adjusted EBITDA includes One-time adjustment for ESOP, Merger and acquisition costs of Rs. 258 mn and Rs.169 Mn respectively for Q3FY24 and Q3FY25.2) Segment revenue ‘s are Restated.3) Q3 includes consolidation of Sapala INR 113 mn and 12 days consolidation of NJ Bio INR 116Mn Suven + Cohance Consolidated Financials Proforma basis subject to the proposed amalgamation of Cohance Lifesciences
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Pg. 10 4,019 3,97823.8%22.5%9MFY24 9MFY25 Adjusted PAT (INR Million)Margin (%)9MFY25 Proforma Business performance overview combined platform 16,90317,6919MFY24 9MFY25Operational Revenue (INR Million) 5,979 6,14935.4%34.8%9MFY24 9MFY25 Adjusted EBITDA (INR Million)Margin (%) 6,9837,7699MFY24 9MFY25Pharma CDMO (INR Million) 2,6861,4879MFY24 9MFY25Spec Chem (INR Million) 7,2348,4359MFY24 9MFY25API + (INR Million) Due to the nature of the CDMO business, Annual trends should be consideredNote: 1) Adjusted EBITDA includes One-time adjustment for ESOP, Merger and acquisition costs Rs.594 mn & 329 mn for 9MFY24 & 9MFY25 respectively.2) Segment revenues are ‘restated.3) 9M FY25 includes consolidation of Sapala INR 113 mn and 12 days consolidation of NJ Bio INR 116Mn Suven + Cohance Consolidated Financials Proforma basis subject to the proposed amalgamation of Cohance Lifesciences
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Pg. 11 568 95525.8%31.1%Q3FY24 Q3FY25 Adjusted PAT (INR Million)Margin (%)Q3FY25 Suven Pharma - Business performance overview 2,1983,072Q3FY24 Q3FY25Operational Revenue (INR Million) 810 1,38036.8%44.9%Q3FY24 Q3FY25 Adjusted EBITDA (INR Million)Margin (%) 8731,894Q3FY24 Q3FY25Pharma CDMO (INR Million) 833610Q3FY24 Q3FY25Spec Chem (INR Million) 492568Q3FY24 Q3FY25Formulations & Other Services (INR Million) Consolidated Financials Due to the nature of the CDMO business, Quarterly comparisons are not idealNote: 1) Adjusted EBITDA includes one-time adjustments of INR 163Mn in Q3FY25, comprising largely an ESOP charge2) Segment revenue ‘s are Restated.3) Q3 includes consolidation of sapala INR 113 mn and 12 days consolidation of NJ Bio INR 116Mn
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Pg. 12 2,569 2,46532.2%31.0%9MFY24 9MFY25 Adjusted PAT (INR Million)Margin (%)9MFY25 Suven Pharma - Business performance overview 7,9847,9569MFY24 9MFY25Operational Revenue (INR Million) 3,525 3,37244.2%42.4%9MFY24 9MFY25 Adjusted EBITDA (INR Million)Margin (%) 4,5225,4009MFY24 9MFY25Pharma CDMO (INR Million) 2,1419289MFY24 9MFY25Spec Chem (INR Million) 1,3211,6279MFY24 9MFY25Formulations & Other Services (INR Million) Consolidated Financials Due to the nature of the CDMO business, Annual trends should be consideredNote: 1) Adjusted EBITDA includes one-time adjustments of INR 274Mn in 9MFY25, comprising largely an ESOP charge2) Segment revenue ‘s are Restated.3) 9m iFY25 ncludes consolidation of Sapala INR 113 mn and 12 days consolidation of NJ Bio INR 116Mn (0.4)%
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Combined Business: Proforma Metrics
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Pg. 14 Proforma Merged Entity Merged Company Merged Company 9MFY25INR Mn 17,6919,7357,9566,1412,7773,37234.8%28.5%42.4%3,9781,5132,46522.5%15.5%31.0%25.8%26.8%24.9%13.4%23.0%13.4%0.0X(0.4)X0.5X RevenueAdjusted EBITDAAdjusted EBITDA margin %Adjusted PATRoCERoE(Net Debt) / Net Cash to Adj. EBITDAxAdjusted PAT margin % Note: 1) Adjusted EBITDA includes One-time adjustment for ESOP, Merger and acquisition costs Rs.594 mn and Rs.329 mn for 9MFY24 & 9MFY25 respectively. Source: Cohance LifeSciences Website published Investor Presentation
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Pg. 15 Proforma Merged Entity - Combined business mix Merged Company Merged Company Sales Mix (9MFY25)API++70%CDMO30%CDMO80%Formulations & Others20% CDMO52%API++48%Manufacturing Facilities (Regulatory approved)R&D Centers6 (2) 8 (5) 14 (7)3 4 7Capacity~1,400 kL ~1,250 kL ~2,650 kL Source: Cohance LifeSciences Website published Investor Presentation 9MFY25
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Combined Business: Key segment wise strategy
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Pg. 17 Our Growth Engines – Pharma CDMO key driverSmall Molecules, ADCs, Oligonucleotides and Peptides constitute ~52% of New Drug Additions to the Global Preclinical and Clinical Pipeline in 20241 •Strategic Business Unit to focus on growth acceleration by adding new customers and new products.•Dedicated site (Vizag), Space for future expansion.•Relationships with innovators in AgChem, Cosmetics, Electronic Chemicals and Photochromic Lens. API+*•Focused portfolio and market leadership in low-mid volume, specialty APIs with low competitive intensity•Ongoing augmentation of new product pipeline.•Built deep cost position through backward integration.•Top 3 player in 8 out of 10 top molecules in the API portfolio. •Offering end to end vertically integrated solutions including pellets and formulations. Pharma CDMO53%#of SalesSmall Molecules•16 CommercialPatented molecules•14/20 Top innovator relations; contributing >80% revenues•7 molecules in Phase-3 translating into 12 intermediates; RFQs growing 2.2x ADC*Payload –linker –Bioconjugation•Two unique commercial ADCs supplies•Expanding payload and products Portfolio and Clinical Collaborations–added 3customers and new products•Drug Discovery to commercial full chain exposure Oligonucleotides•Amongst few CDMOs globally specialized in Oligonucleotide and mRNA building blocks including Galnac and Tri-cyclo-DNA Specialty Chemicals7% of Sales 40% of SalesSource: 1 Citeline Pharmprojects, *Proforma basis subject to the proposed amalgamation of Cohance Lifesciences# % sales – 9M Revenue Dec’24 Suven and Cohance combined + Sapala proforma FY24 + CY24 NJ Bio proforma
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Pg. 18 Pharma CDMO – Small moleculesPhase III pipeline moving with higher conversionsoActive pipeline of 100+ projects spanning Phase I to Phase III.oWe have 16 commercial Pharma molecules across combined platformPhase III pipelineoOur Phase III pipeline has strengthened further now comprising9moleculeswith15intermediates.oThe two recent additions:onemolecule has successfully advanced to phaseIII, whileanotherhas been directly added to Phase III.oAs previously highlighted, positive readout on a Phase III molecule has nowmet the primary endpoint for a second indication.Highest streak of RFQs inflow persists; Higher mix of laterals, RFQs from newcustomers and category expansion.o9M RFQs 2x or doubled year-on-year.oProduct mix: Contribution from Late-Stage and Mid-Stage RFQs continues togrow, strengthening our position as a strategic partner for developments oflaterals.oProduct type mix: incremental contribution continue to increase from nichetechnology projects like ADCs, Peptides, Oligonucleotide Fragments.oCustomer mix: new RFQs received from select Biotech companies; Increasingshare of new customers, aligning with our strategic focus on R&D efforts andexpanding our customer base, progressing up the value chain(fromintermediates to APIs).Pg. 18 9MFY24 9MFY25 RFQs Inflowx 2x 2 9615FY239MFY25 Phase III pipeline Phase III moleculesPhase III intermediate
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Pg. 19 Favorable Industry Macros leading to growth in Small Molecule PipelineSmall Molecule Pipeline continues to grow on the back of Oncology contributes more than >50% Source: Citeline •The active clinical trial pipelinekeeps growing and has reached22,936 active drugs.•Small Molecules is 52% of thecurrent pipeline, Biologics 43% andOthers (including NaturalSubstances) is 5%•By far the largest chunk of drugs fallinto the oncology bucket.05,00010,00015,00020,00025,000199519961997199819992000200120022003200420052006200720082009201020112012201320142015201620172018201920202021202220232024 Active Clinical Pipeline by Year Small MoleculeBiologicsOthers
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Pg. 20 Small molecules: Increasing proportion of US FDA approvalsUS FDA Approvals lean towards small moleculesRecord Number of Approvals in 2024:50 novel drugs wereapproved in 2024.Other notable statistics include:•Cancer remains the dominant focus of drug developers,with 30% novel approvals in 2024.•Biologic approvals stay constant at 30-35% per year•52% received Orphan Drug Designation for treating rarediseases.•36% were designated Breakthrough designation.•56% received priority review, a regulatory designation fortherapies that the FDA expects to offer ‘significantimprovements over the standard of care. Source: CitelineThe positive trend continues in 2024:In 2024, 50 novel drugs were approved by FDA, of which 34 were small molecules (68%),which includes two Oligos, one Peptide and one Radiopharma 3829 2924273620221824252130392741452234594853503755500%10%20%30%40%50%60%70%80%90%100% 01020304050607019992000200120022003200420052006200720082009201020112012201320142015201620172018201920202021202220232024 US FDA Approvals Trend Small MoleculesLarge Molecules% Biologics
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Pg. 21 -5.00%0.00%5.00%10.00%15.00%20.00%25.00%30.00%35.00%40.00%Expected Market Growth (2023-29) CDMO Market by Technology – Market Size and Projected Growth (2023-29)Suven is present in the fast growing tech platforms of ADCs & Oligos Cell and Gene TherapyADC($2.7 Bn)Oligonucleotides and Nucleic Acid($1.5 Bn)BiologicsPeptidesFermentationHPAPIVaccinesControlled SubstancesHormones, Steroids, ProstaglandinsOverall Small Molecules – Originators and GxProtein Degraders(~$100 Mn)Suven High-Growth Technology Platforms Suven + Cohance Platform presence Source: Industry data
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Pg. 22 Significant R&D investments in ADC and Oligos/mRNA in the clinical pipeline 05,00010,00015,00020,00025,000 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Global Clinical Active Pipeline Small MoleculesBiologics: Proteins/AntibodiesCell and Gene TherapyVaccines and Viral VectorsADCNucleic Acids: Oligos and mRNAPeptides 2019-24R&D pipeline growth (CAGR)2%Peptides19%Nucleic Acids (Oligos/mRNA)20%Antibody-Drug Conjugates (ADC)8%Vaccines and Viral Vectors12%Cell and Gene Therapy6%Biologics- Proteins/Antibodies4%Small Molecules - General6%Overall Clinical PipelinePharmaceutical Drug R&D TrendsSurging Interest in Targeted Therapies and Genetic Treatment leading to uptake in ADCs, Nucleic Acids and Cell/Gene TherapiesSource: Industry dataPresence in small molecules, contributing >50% of total addressable R&D pipeline (incl. Oligos, ADCs)
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Pg. 23 $1.4B$4B 2024 2029e Suven uniquely placed to achieve leadership position in the fast-growing ADC/XDC segmentTotal ADC/XDC outsourcing Market excluding mABsEnd-to-end CRDMOPartner from Drug Discovery to CommercializationIntegrated Service Offerings: across variety of standard and custom Payloads, Linkers, Analytical and BioconjugationUnique breadth of XDCand different payload capabilities –Oligonucleotides, Radionuclides, Protein DegradersUniquely positioned as a Pureplay Payload Supplier: covering 75%of Payload marketExtensive Library of Payload-Linkers for Discovery based on biology of the ADC target from a library of 500+Payload-LinkersGlobal leadership in Camptothecin payloads; supplying to 2 commercial ADCs; leadership in S-Trione- a key intermediate in camptothecin derivatives Expanded ADC offerings to become an integrated End to End CRDMO post acquisition of NJ Bio Capacityaugmentation in US & India; Portfolio expansion in new payloads and linker ADC/ XDC CDMO market to grow ~3x in next 5 yearsOur unique capabilities in ADCs and XDCs Source: : Industry data
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Pg. 24 Oligonucleotides is the emerging modality with fast growing and immense opportunity for higher market share gainAmongst the few CDMOs globally, supplying complex building blocks for Oligonucleotides Nucleic acids & oligos vital for R&D in therapeutics, diagnostics,and synthetic biology.Market Growth:Moving from rare diseases to high prevalencechronic indications. Rising use in molecular diagnostics andclinical applications.Increased Investments:Pharma and Biotech driving expansionAmidite and Galnac segments to grow significantly faster than oligonucleotides market itself Oligonucleotidesmarket to grow at 25%+ CAGRCapable of synthesizing aspectrum of modified amidites and nucleosides with excellent purity with high level of backward integration (15+ steps)Diversified innovator customer (CDMO and Diagnostic) base with a strong Japan presenceMulti-kilo scale synthesis of wide variety of GalNAc compounds supplied to Innovators with highest purity profile. Only supplier of Tricyclo-DNA Amidites in the world Our Niche in Oligonucleotide segment Source: : Industry data $1B$4BFY24 FY29E Market Size ($ bn) Mastered the chemistry of conformationally constrained nucleic acids and supply to innovatorsForward integratingto oligonucleotide drug substance manufacturing Capacity augmentation: Investing in a cGMP facility to enhance capacity and drive R&D growth
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Pg. 25 Acquisition of NJ Bio gives Suven End to end ADC/XDC capabilities; makes Suven Platform a major ADC playerBusiness and service offerings•End-to-end ADC chemistry capabilities (P-L1synthesis, bioconjugation,bioanalytical services). Also has capabilities in the broader XDC segment(radio conjugates, oligo conjugates, peptide conjugates etc) and mRNA•Initially started with focus on preclinical services including proof-of-concept, process development, scale up, IND batches. Delivered 500+projects so far•Developed an extensive library of payload-linkers and offers ‘ExpressConjugation’ service that allows to establish proof of concept for a novelADC. Additional investments being made towards R&D for novel payloadlinkers and new technologies (e.g. protein degraders)•Recently forayed into GMP Ph1/Ph2 P-L manufacturing. Plans to furtherexpand of GMP Ph1/Ph2 capacities (including bioconjugation) in the neartermManufacturing and Operations•Headquartered in Princeton, NJ, USA (a key ADC innovation hub). 80,000 sqft of lab space and GMP suites in Princeton with ~100 employees (including80+ scientists).•Also has India operations: 6,500 sq ft space in Mumbai ; ~40 employeesinvolved in creating payload-linker library and R&D innovation workFinancials•Has grown sales robustly: US$7mn in CY21 to US$32mn in CY24; significantmargin expansion potential as business expands•Company is in a high growth phase – foray into cGMP compliantmanufacturing in CY24 has led to uptick in opex. Operating leverage willdrive EBITDA margin expansion in medium term Revenue Growth Trajectory2 (US$mn) Note:(1) P–L = Payload – Linker, (2) CY= Calendar Year “January to December” 6.6 14.2 20.6 32 CY21 CY22 CY23 CY24 ADC Manufacturing ProcessEnd-to-end Integrated CRDMO PayloadLinker & P/L synthesisBio-conjugationPhase 1 PreclinicalDiscoveryIndia + US footprint Phase 2Phase 3 Commercial
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Pg. 26 Expansion of ADC - CDMO Market share for Suven+Cohance platform via NJ BioSuven’s Addressable Market expands 7x (US$200mn to US$1.4bn), post-acquisition. Suven Platform and NJBio’s relevant addressable market is slated to grow from US$1.4bn to US$4bn (23%+ CAGR) Source: Industry DataExpansion of Addressable Market•Acquisition expands the serviceable market forCohance which is presently in latephase/Commercial Payloads•Supply to Early-Stage Payload along withaddition of novel offerings like Linkers andBioconjugation Market Share within Existing Segments•Enables Suven+Cohance to tap the customerearly and maintain continuity of supplyNew Opportunities: Bioconjugation and Linkers atCommercial Phase•NJ Bio’s Linker and Bioconjugation capabilitiesare confined to early stage due to lack of GMPexperience•Combination with Cohance will enable entry tothe late phase Linkers and Bioconjugation Addressable market size(US$1.36Bn) Addressable market size(US$3.88Bn)
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Pg. 27 API+ reported 17% YoY growth in 9M with healthy order bookWhat will accelerate the base growth:Portfolio is unique and can drive sustained growthoBusiness model focus is on small-mid volume APIs. Theseproducts segments have less concentration risk and limitedpricing pressure.oFocus on expanding market share on the back of deep costposition backed by backward integration•Continue to be amongst the Top 3 players for most topmolecules (8/10)oCapabilities to handle a drug end-to-end throughout itslifecycleHigher product validations over 18-24 months; well supported by ourBD efforts; target to add 7+ new products in FY25Outlook:In-line with earlier expectation, expected to deliver full yeargrowth backed by new product launches and market demandrecovery. API+ delivers double digit growth in 9M Pg. 27 Sustained growthSustained growth Small molecules continue to be a significantly largeproportion of Merchant API market revenues $101+ Bn Total Addressable Market *Source: Industry/Market data Source: Cohance investor presentation 9195100106113117 2023 2024 est. 2025 est. 2026 est. 2027 est. 2028 est. Merchant API market revenues*, Euro
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Pg. 28 Specialty Chemical recovering as envisagedAg-chem:As indicated, we have seen strong sequential recovery in this business segment.Our concerted BD efforts and early benefits of SBU strategic focus yielding results.We’re seeing new product discussions and fresh RFQs including from potential newcustomers and existing strategic partnerships.Development and Commercial manufacturing with focus on intermediates and AIsFlexible capacity - Dedicated site for AgChem (Vizag), Space for future expansion,Kilo / Pilot scale facility availableImproved processes, introducing EHS Best PracticesSpec ChemRelationships with Originators in Cosmetics, Electronic Chemicals, PhotochromicLens and Energy IndustriesSuccessfully delivered innovator projects from gram to multi kilo scaleAmongst India’s leading manufacturers of high purity electronic chemicals;Highly backward integratedPg. 28 Source: Cohance investor presentation
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Update on Amalgamation of Suven Pharmaceuticals with Cohance Lifesciences
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Pg. 30 Suven Pharma – Cohance Merger –Approval update Received shareholders’ approval, with 99.99%votes in favourFinal hearing at NCLT scheduled for February 18Merger expected to be effective inQ1FY26subject to regulatory approvals including DoP. Pg. 30
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ESG
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Pg. 32 ESG AspirationsWe have set multi-dimensional ESG goals for the next 5 years ESG ProfileESG ProfileESG report for FY 2023-24ESG report for FY 2023-24 EHSReduce absolute Scope 1+2 emissions from current level (2030)Transition to renewable energy sources of total energy use by 2027Reduce, reuse and recycle specific water consumption by 2028Reportable Loss time injury co2 35%20+%25%Zero SocialEmployees undergo Health and Safety training Representation of Women workforce by 2030Reduce Attrition by FY28 Promote public health education and disease prevention 100%20+%<10%CSR GovernanceEthical non-compliance Regulatory non-compliance or finesEmployees and Board Members to acknowledge the Code Of Conduct ZEROZERO100% ISO 45001:2018Occupational Healthand SafetyManagement System Business continuity management System ISO 22301 : 2019 British safety council five-star certification Silver in EcoVadis Sustainability assessment Committed to Science Based Target initiative (SBTi) 97% score in TFS audit To be achievedOur achievement Gold in Eco Vadis Sustainability assessment – 2025Signing third party purchase agreement for renewable power for all the facilitiesPharmaceutical Supply Chain Initiative (PSCI) membership – 2025
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Financial Performance Q3 & 9MFY25
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Pg. 34 Note: 1) Till FY23, proforma and adjusted financials of Cohance entities (RAC, ZCL and Avra) have been extracted from report issued by Deloitte Touche Tohmatsu India LLP. Adjusted P&L numbers are reported numbers adjusted out for one-time expenses and income; FY24 numbers as per audited financials of the merged entity (Cohance). 2) RoU and Intangible assets Includes RoU under development and intangibles under development respectively3) Adjusted EBITDA includes One-time adjustment for ESOP, Merger and acquisition costs of Rs. 258 mn and Rs.169 Mn respectively for Q3FY24 and Q3FY25 and Rs.594 mn & 329 mn for 9MFY24 & 9MFY25 respectively.4) Suven Q3FY25 and 9MFY25 includes consolidation of Sapala and NJ BIO.5)PAT attributable to NCI is of Rs. 1.7 mnand Rs. 3.8 mnin 9MFY25 and Q3FY25 respectively in Suven. YoYCAGRINR million9MQ3FY20-FY249MFY259MFY24Q3FY25Q3FY24FY24FY23FY22FY21FY20Combined Proforma P&L Snapshot4.7%39.6%9.0%17,69116,9036,7644,84623,92226,77926,00420,14016,969Revenue (5,279)(5,667)(1,925)(1,718)(8,006)(9,283)(9,291)(7,024)(5,997)COGS 10.5%54.7%9.7%12,41211,2364,8393,12815,91617,49616,71313,11610,972Material Margin70.2%66.5%71.5%64.6%66.5%65.3%64.3%65.1%64.7%Material Margin%(1,847)(1,980)(675)(675)(2,506)(3,242)(3,009)(2,461)(1,994)Manufacturing Expenses(3,310)(2,779)(1,193)(891)(3,771)(3,038)(2,719)(2,195)(1,924)Employee cost(1,552)(1,189)(575)(440)(1,959)(1,541)(1,559)(1,266)(1,197)Other expenses7.8%113.6%7.0%5,7025,2882,3961,1227,6809,6759,4267,1945,857Adjusted EBITDA (pre Fx)118985532102415208261224Operating Forex gain / (loss)329594169258752One time Expenses2.8%85.5%8.8%6,1495,9792,6201,4128,53410,0899,6357,4556,080Adjusted EBITDA (post Fx)34.8%35.4%38.7%29.1%35.7%37.7%37.1%37.0%35.8%EBITDA%(1,044)(844)(409)(319)(1,139)(1,002)(900)(786)(679)Depreciation & Amortization(306)(276)(108)(104)(406)(283)(173)(137)(396)Finance costs430561139148731349309216335Other income-3.5%97.1%9.7%5,2295,4202,2421,1377,7209,1538,8716,7485,340Adjusted PBT(1,251)(1,401)(561)(299)(1,981)(2,380)(2,961)(1,710)(1,322)Tax -1.0%100.5%9.3%3,9784,0191,6818385,7396,7735,9105,0384,018Adjusted PAT22.5%23.8%24.8%17.3%24.0%25.3%22.7%25.0%23.7%PAT%Accounting entries relating to merger of AI Pharma and RA Chem(83)(88)(28)(37)(102)(75)(185)Depreciation and amortization212279261947Tax impact of above3,9163,9531,6608115,6626,7185,7725,0394,018PAT (post consol adjustments) Q3 Revenue grew by 40%YoY, as guided earlier onhigher growth in 2HFY25.Strong growth by PharmaCDMO and API+ withhealthy sequentialrecovery in Spec Chembusiness.The gross and EBITDAmargins were at 71.5%and 38.7%, respectively,driven by business mixand our BD and R&Dteams efforts.At a combined platformlevel, we anticipategrowth in the second halfof FY25, and growthacceleration from FY26onwards. Proforma P&L Suven + Cohance Combined – Snapshot
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Pg. 35 Note: 1) Till FY23, proforma and adjusted financials of Cohance entities (RAC, ZCL and Avra) have been extracted from report issued by Deloitte Touche Tohmatsu India LLP. Adjusted P&L numbers are reported numbers adjusted out for one-time expenses and income; FY24 numbers as per audited financials of the merged entity (Cohance). Figures are after adjusting accouting entries relating to merger of AI Pharma and RA Chem.2) RoU and Intangible assets Includes RoU under development and intangibles under development respectively.3) Suven 9MFY25 includes consolidation of Sapala and NJ BIO. INR million9MFY259MFY24FY24FY23FY22FY21FY20Combined Balance Sheet Snapshot1 15,52710,16910,27310,0599,3968,4997,354Property, plant and equipment (PPE)2,40173276237219310522Right of use asset (RoU) 2 3,0043,5414,0822,8187581,1161,114Capital work-in-progress7,5667287287401467776Intangible Assets 2 28,49815,17015,84513,98810,4929,7978,566Fixed Assets6,0066,2435,9866,7696,1004,5623,643Inventories7,1045,2376,4695,3566,0184,2414,326Trade receivables(3,510)(2,087)(2,418)(2,940)(2,729)(2,546)(2,016)Trade payables9,6009,39310,0389,1859,3896,2575,953Core Net Working Capital (Core NWC)(1,486)1,3551,0021,6269653,5492,947Other net assets(6,510)000000 (2,844)(5,253)(5,274)(3,359)(2,693)(2,742)(3,531)Borrowings2,9818,9699,4405,8439,3965,8203,918Cash and Cash equivalents (including liquid investments)1373,7174,1672,4846,7033,078387Net (debt) / cash30,23929,63531,05227,28327,54922,68217,853Net assets28,51929,63531,05227,28227,54922,68217,853Shareholder's funds1,720Non Controlling Interests The combined balance sheetremained net cash despitetwo strategic acquisitionfunded through internalaccruals in 9MFY25.Working capital as guided hasseen improvement and we arepositive on sustaining theimproving trend as growthtraction sustains for thecombined business.The indicative ROCE thebusiness is in 9MFY25 at 25.8%. Proforma BS Suven + Cohance Combined– Snapshot
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Pg. 36 Note: 1) Key ratios computed on LTM basis for 9MFY252) The above ratios for 9MFY25 are after considering Sapala and NJBIO consolidation Basis9MFY259MFY24FY24FY23FY22FY21FY20Key Ratios# NWC / Revenue * 365 days142139153125132113128Net Working Capital (as days of sales)PPE / Revenue62.8%41.3%42.9%37.6%36.1%42.2%43.3%PPE (as % of sales)2,3111,6882,6074,2031,6631,9181,527Capex spend during the year (INR M)Capex spend / Revenue9.4%6.9%10.9%15.7%6.4%9.5%9.0%Capex spend (as % of sales)Net Debt / Adjusted EBITDA0.0x0.4x0.5x0.2x0.7x0.4x0.1x(Net Debt)/ Net Cash to adjusted EBITDA (x times)Adjusted EBITDA - Depreciation and Amortization5,1055,1357,3949,0878,7356,6705,402Adjusted EBIT (INR M)Avg of opening and closing Capital employed (Net fixed assets + NWC + other net assets)7,3648,419Adjusted EBIT (INR M) - LTM basis28,49325,35824,00121,35017,83315,19213,949Avg Capital employed (INR M)Adjusted EBIT / Avg. Capital employed25.8%33.2%30.8%42.6%49.0%43.9%38.7%ROCE (%)Avg of Opening and closing shareholder's funds29,78528,45927,32625,94422,72416,92414,460Avg Shareholder's funds (INR M)Adjusted PAT / Avg Shareholder's funds13.4%14.1%21.0%26.1%26.0%29.8%27.8%ROE (%)# calculated based on Proforma P&L and Balance Sheet of Suven + Cohance combined Suven + Cohance Combined Ratios
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Pg. 37 YoYCAGRINR million9MQ3FY20-FY249MFY259MFY24Q3FY25Q3FY24FY24FY23FY22FY21FY20Consolidated P&L Snapshot-0.4%39.7%6.0%7,9567,9843,0722,19810,51413,40313,20210,0978,338Revenue (1,713)(2,313)(556)(724)(3,150)(4,091)(3,991)(3,019)(2,292)COGS 10.1%70.7%5.1%6,2435,6712,5151,4747,3649,3129,2117,0786,046Material Margin78.5%71.0%81.9%67.0%70.0%69.5%69.8%70.1%72.5%Material Margin%(930)(969)(347)(330)(1,224)(1,763)(1,732)(1,338)(1,038)Manufacturing Expenses(1,605)(961)(633)(348)(1,359)(1,105)(1,005)(762)(651)Employee cost(691)(416)(358)(135)(722)(702)(680)(573)(540)Other expenses-9.3%78.1%1.5%3,0163,3251,1776614,0595,7425,7944,4053,817EBITDA (pre Fx)37.9%41.6%38.3%30.1%38.6%42.8%43.9%43.6%45.8%EBITDA%826740158126813811550Operating Forex gain / (loss)274134163134211(134)000Onetime expenses-4.3%70.5%3.0%3,3723,5251,3808104,3515,8765,9324,5203,867Adjusted EBITDA (post Fx)42.4%44.2%44.9%36.8%41.4%43.8%44.9%44.8%46.4%EBITDA%(507)(373)(204)(128)(502)(480)(391)(316)(235)Depreciation & Amortization(66)(52)(33)(22)(75)(128)(62)(91)(199)Finance costs39838211712953819512327131Other income-8.2%59.8%4.9%3,1973,4821,2617894,3125,4635,6024,1403,564Adjusted PBT(732)(913)(306)(221)(1,118)(1,451)(2,138)(1,053)(875)Tax -4.1%68.2%4.4%2,4652,5699555683,1944,0123,4643,0872,689Adjusted PAT31.0%32.2%31.1%25.8%30.4%29.9%26.2%30.6%32.2%PAT% Pharma CDMO reported robustgrowth in Q3 as guided earlieron a heavy 2HFY25, we remaincertain on reporting growth inFY25 in Suven consolidatednumbers as guided.Gross margins improved by14.52 ppt YoY, purely driven bythe business mix.Adjusted EBITDA margins were44.9% an expansion of 8.05 pptYoY, reflecting our currentinvestments aimed at steeringSuven towards the next growthorbit and supported bybusiness mix.PAT margins stood at 31.1%.Note: 1) Adjusted EBITDA includes One-time adjustment for ESOP, Merger and acquisition costs of Rs. 134 mn and Rs.163 Mn respectively for Q3FY24 and Q3FY25 and Rs.134mn & 273 mn for 9MFY24 & 9MFY25 respectively.2) Q3FY25 and 9MFY25 includes consolidation of Sapala and NJ BIO.3) PAT attributable to NCI is of Rs. 1.7 mn and Rs. 3.8 mn in 9MFY25 and Q3FY25 respectively. Suven P&L – 9M Adjusted EBITDA margins at 42%
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Pg. 38 INR million9MFY259MFY24FY24FY23FY22FY21FY20Consolidated Balance Sheet Snapshot8,3905,6115,6725,8425,3064,3713,531Property, plant and equipment (PPE)2,11140340616914179Right of use asset (RoU)2,3861,8131,7901,6513009611,016Capital work-in-progress7,448619619622222629Intangible Assets (Including Goodwill)20,3358,4478,4878,2845,6425,3754,584Fixed Assets2,4662,5322,3123,1282,8342,0111,749Inventories2,8651,2641,3371,1092,3641,0241,172Trade receivables(1,362)(420)(424)(701)(1,059)(829)(711)Trade payables3,9683,3763,2253,5374,1392,2052,210Core Net Working Capital (Core NWC)(1,558)0480763424399196Other net current assets(252)8014575917383,3392,863Other net non current assets(6,510)000000Forward Liability(677)(345)(386)(692)(956)(1,412)(1,853)Borrowings2,8197,5358,2444,8695,2851,902447Cash and Cash equivalents (including liquid investments)2,1427,1907,8584,1784,330490(1,405)Net (debt) / cash18,12519,81420,50717,35215,27211,8088,448Net assets16,40619,81420,50717,35215,27211,8088,448Shareholder's funds1,720Non Controlling interests Working capital under control.Free Cash generation in 9MFY25 was Rs1.33bn.Cash and bank balance of Rs 2.82bn,post the payment on the account of NJBio acquisition. Suven Balance Sheet – Healthy cash rich B/S Note : 1) PPE includes carved out land of Rs. 375mn in sapala acquistiion & classified as held for sale as per sharepurchase agreement 2) 9MFY25 includes consolidation of Sapala and NJ BIO.
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Pg. 39 Basis9MFY259MFY24FY24FY23FY22FY21FY20Key RatiosCore NWC / Revenue * 365138106112961148097Net Working Capital (as days of sales)Closing PPE / Revenue80.0%48.1%54.0%43.6%40.2%43.3%42.3%PPE (as % of sales)9383605182,8577521,1081,029Capex spend during the year (INR M)Capex spend / Revenue8.9%3.1%4.9%21.3%5.7%11.0%12.3%Capex spend (as % of sales)(Net Debt) or Net Cash/ Adjusted EBITDA0.5x1.3x1.8x0.7x0.7x0.1x-0.4x(Net Debt)/ Net Cash to adjusted EBITDA (x times)Adjusted EBITDA - Depreciation and Amortization3,5624,9413,8485,3965,5414,2033,631Adjusted EBIT (INR M)Avg of Opening and Closing Capital employed (excluding Goodwill, Non-current investments and Cash & CE)14,31612,89911,07010,5868,7397,2426,655Avg Capital employed (INR M)Adjusted EBIT / Avg. Capital employed24.9%38.3%34.8%51.0%63.4%58.0%54.6%ROCE (%)Avg of Opening and closing shareholder's funds (excluding Goodwill and Non-current investments)18,45618,58317,08814,84011,1486,7855,638Avg Shareholder's funds (INR M)Adjusted PAT / Avg Shareholder's funds13.4%13.8%18.7%27.0%31.1%45.5%47.7%ROE (%)Note: 1) Key ratios computed on LTM basis for 9MFY24 and 9MFY252)The Ratios for 9MFY25 are after considering Sapala and NJBIO consolidation Suven – Key Ratios
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Pg. 40 Cohance Proforma P&L – Snapshot Note: 1) Till FY23, proforma and adjusted financials of Cohance entities (RAC, ZCL and Avra) have been extracted from report issued by Deloitte Touche Tohmatsu India LLP. Adjusted P&L numbers are reported numbers adjusted out for one-time expenses and income; FY24 numbers as per audited financials of the merged entity (Cohance) 2) Manufacturing expenses include power and fuel, consumption of stores & spares, repairs & maintenance, EHS expenditure, etc. 3) Employee costs include on-payroll employee benefit expenses and contract employee expenses 4) Other expenses include Freight outward, Commission and brokerage, Legal and professional fees, Rates and taxes, Insurance, etc. 5) Adjusted EBITDA includes One-time adjustment for ESOP,merger and other costs of Rs. 124 mn and Rs.5 Mn respectively for Q3FY24 and Q3FY25 and Rs.460mn & 55mn for 9MFY24 & 9MFY25 respectively. As guided earlier, H2FY25 was expected to bestrong, and this isreflected in Q3FY25performance, with theCDMO segmentreporting 58% YoYgrowth and the API+segment growing 31%YoY.With a strong order bookvisibility, Cohanceremains well-positionedto drive growth in FY25.In Q3, EBITDA marginsexpanded by 10.8 pptYoY to 33.6%, driven by ahigher share of CDMOand improved utilization.Proforma foracquisitions, organicgrowth for the platform YoYINR million9MQ3CAGRFY19-FY249MFY259MFY24Q3FY25Q3FY24FY24FY23FY22FY21FY20FY19Proforma P&L Snapshot9.1%39.4%13.0%9,7358,9193,6922,64813,40813,37512,80210,0438,6317,272Revenue (3,566)(3,354)(1,369)(993)(4,990)(5,058)(5,300)(4,004)(3,705)(2,900)COGS 10.9%40.4%14.0%6,1695,5652,3241,6558,4188,3177,5026,0394,9264,372Material Margin63.4%62.4%62.9%62.5%62.8%62.2%58.6%60.1%57.1%60.1%Material Margin%(917)(1,011)(328)(345)(1,282)(1,480)(1,277)(1,123)(955)(1,058)Manufacturing Expenses(1,705)(1,818)(560)(544)(2,447)(1,933)(1,714)(1,433)(1,273)(1,137)Employee cost(861)(773)(217)(305)(1,279)(839)(879)(693)(657)(584)Other expenses36.8%164.5%16.4%2,6861,9631,2194613,4104,0663,6332,7902,0411,593EBITDA (pre Fx)27.6%22.0%33.0%17.4%EBITDA%36311518211476914617419Operating Forex gain / (loss)554605124752One-time Expenses(ESOP&Merger)13.1%105.6%21.0%2,7772,4541,2406034,1834,2133,7022,9362,2141,612Adjusted EBITDA (post Fx)28.5%27.5%33.6%22.8%31.2%31.5%28.9%29.2%25.7%22.2%EBITDA%(537)(471)(205)(191)(637)(522)(509)(469)(444)(479)Depreciation & Amortization(240)(224)(75)(83)(332)(154)(110)(45)(197)(169)Finance costs321792119193154186189204157Other income4.8%181.3%24.9%2,0321,9389813493,4083,6913,2692,6101,7771,121Adjusted PBT(519)(488)(255)(78)(863)(929)(823)(657)(447)(282)Tax 4.4%168.5%24.8%1,5131,4507262702,5442,7622,4461,9531,330839Adjusted PAT15.5%16.3%19.7%10.2%19.0%20.6%19.1%19.4%15.4%11.5%PAT%Accounting entries relating to merger of AI Pharmed and RA Chem (83)(88)(28)(37)(102)(75)(185)Depreciation and amortization212279261947Tax impact of above1,4511,3847052432,4682,7062,307PAT (post consol adjustments)
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Pg. 41 Note: 1) Till FY23, proforma and adjusted financials of Cohance entities (RAC, ZCL and Avra) have been extracted from report issued by Deloitte Touche Tohmatsu India LLP. Adjusted P&L numbers are reported numbers adjusted out for one-time expenses and income; FY24 numbers as per audited financials of the merged entity (Cohance). Figures are after adjusting accouting entries relating to merger of AI Pharma and RA Chem.2) RoU and Intangible assets Includes RoU under development and intangibles under development respectively Capex stood at ₹1.37bn in 9MFY25, with capacityexpansions across multipleplants and a strategic focuson enhancing flexibilitythrough backwardintegration. During the period,we acquired a new facilityfrom Avra Synthesis for₹415mn and capitalizedAnkleshwar Block V with₹1.36bn.Debt reduction remains apriority, with cash flowsdirected towards repayment.Free cash flow generationstood at ₹1.91bn in 9M FY25New capacity utilization is setto improve further, supportedby synergies from the mergerand cross-pollinationopportunities gainingmomentum. Cohance Proforma Balance Sheet – SnapshotINR million9MFY259MFY24Mar-24Mar23Mar22Mar21Mar20Mar19Proforma Balance Sheet Snapshot 1 7,1374,5574,6014,2174,0904,1283,8243,699Property, plant and equipment (PPE)29032835620217989130Right of use asset (RoU) 2 6181,7282,2921,1674581559945Capital work-in-progress118109109118123514747Intangible Assets 2 8,1636,7227,3585,7044,8504,4223,9823,790Fixed Assets3,5403,7113,6743,6413,2662,5511,8941,674Inventories4,2403,9735,1334,2023,6543,2183,1542,434Trade receivables(2,148)(1,666)(1,994)(2,141)(1,670)(1,716)(1,305)(852)Trade payables5,6326,0176,8135,7035,2504,0523,7433,256Core Net Working Capital (Core NWC)32355565218(196)(189)(111)(70)Other net assets(2,167)(4,907)(4,888)(2,668)(1,738)(1,330)(1,678)(2,059)Borrowings1631,4341,1979744,1113,9183,4703,323Cash and Cash equivalents (including liquid investments)(2,005)(3,473)(3,692)(1,694)2,3732,5881,7931,264Net (debt) / cash12,1139,82110,5459,93112,27710,8749,4068,239Net assets12,1139,82110,5459,93112,27710,8749,4068,239Shareholder's fundsAccounting entries relating to merger of AI Pharmed and RA Chem5,8005,8005,8005,8005,8005,800Goodwill370377376382389397Tangible assets377468454556624803Intangible assets(99)(137)(297)Tax impact0(20)(21)Other reconciling items18,65916,46617,17416,56918,93217,5569,4068,239Net assets (post consol adjustments)18,65916,46617,17416,56918,93217,5569,4068,239Shareholder's funds
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Pg. 42 ROCE in FY24 and 9MFY25 reflects higher investments in growth capexNote: 1) Key ratios computed on LTM basis for 9MFY24 and 9MFY25. Cohance Proforma – Key RatiosBasis9MFY259MFY24FY24FY23FY22FY21FY20FY19Key RatiosNWC / Revenue * 365145 170 185156150147158163Net Working Capital (as days of sales)PPE / Revenue50%35%34%32%32%41%44%51%PPE (as % of sales)As per proforma cashflows1,3731,3282,0891,346911810498313Capex spend during the year (INR M)Capex spend / Revenue9.7%10.3%15.6%10.1%7.1%8.1%5.8%4.3%Capex spend (as % of sales)Net Debt / Adjusted EBITDA-0.4x-0.8x-0.9x-0.4x0.6x0.9x0.8x0.8x(Net Debt)/ Net Cash to adjusted EBITDA (x times)Adjusted EBITDA - Depreciation and Amortization3,8023,4783,5463,6913,1932,4661,7711,133Adjusted EBIT (INR M)Avg of opening and closing Capital employed (Net fixed assets + NWC + other net assets)14,17712,46012,93110,7649,0957,9497,294Avg Capital employed (INR M)Adjusted EBIT / Avg. Capital employed26.8%27.9%27.4%34.3%35.1%31.0%24.3%ROCE (%)Avg of Opening and closing shareholder's funds11,3299,87610,23811,10411,57610,1408,822Avg Shareholder's funds (INR M)Adjusted PAT / Avg Shareholder's funds23.0%25.7%24.9%24.9%21.1%19.3%15.1%ROE (%) Delivered significant improvement in the net working capital days, to sustain the ongoing effort.
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Annexure
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The ADC Segment
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Pg. 45 Building blocks of Antibody Drug Conjugates (ADC) and Mechanism of Action Exploring ADC composition Rapidly growing class of drugs intended at targeted delivery of highly potent and cytotoxic agents selectively to tumor tissue •Antibody (mAB)is the targeting component of an ADC. It must be highly specific to an antigen that is abundantly expressed on cancer cells but minimally present on healthy cells•Linker is a critical component that connects the antibody to the drug payload. It must be stable in circulation to prevent premature drug release but able to release the drug once inside cancer cells•Cytotoxic Payload is typically a highly potent cytotoxic agent that would be too toxic for systemic administration on its ownComplex Products with sophisticated interplay ofvariables: The monoclonal antibodies, payloads, andlinkers, form a trimolecular prodrug achieving preciseand efficient elimination/suppression of target cellsand minimize the off-target effects on normal tissues
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Pg. 46 ADCs / XDCs as a class continue to see strong growth in R&D investments, providing strong foundation for CRDMO marketTransforming Therapies: Rapid expansion of ADC R&D PipelinesActive programs by phase (2024)PreclinicalPhase 1Phase 2Phase 3 3161599030 Total ADCs57343723 Total XDCs •~750 active ADC / XDC programs in clinics or in preclinical phases. Increasing ADC approvals over the recent years•Volume of clinical trials have experienced a steep growth between ‘18 and ’24: ~120 trials/year up to ~280 trials/year•Approvals of two blockbuster products (Kadcyle and Enhertu) in 2019 created a pathway for future ADCs•Growing proportion of Novel conjugates (outside ADC) forms part of XDCs. These include Radioconjugates, Oligo Antibody Conjugates, Protein Degraders and others•~85% of the ADC pipeline development originates from Biotechs•ADC & XDC have shown stronger deal flow (VC investments and Big Pharma in-licensings/M&A) compared to broader Pharma and Biotech industry
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Pg. 47 Appendix -Adequate Capacity to serve current and future demandSuryapet, Telangana, IndiaHyderabad Knowledge City, Hyderabad, IndiaCorporate OfficePashamylaram, Telangana, India Jeedimetla, Telangana, India USA, New JerseyBusiness OfficeoBusiness DevelopmentoProject ManagementoIntellectual Property ManagementR&D–Pilot PlantoProcess ResearchoDiscovery R&D, Analytical R&DoKillo lab, 30L CM Reactors (32)o27 KL GL/SS Intermediate Facilityo300 CM reactors (93)o6651KL GL/SSoGMP Intermediates API & Formulation Facilityo406 KL reaction volumeo50L – 6000 L GL/SS (45)oR&DAPI’s/Advanced Intermediate’s/CMOo706 KL reactor volumeo3KL to 12KL ReactorsoGL/SS (45No’s)Vizag, Andhra Pradesh, India Genome Valley, Hyderabad, IndiaR&DoSynergy Square I, Genome Valley,oShamirpet, Hyderabad,oTelangana – 5000781) 410KL new capacity in Suryapet included Source:Internal
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Pg. 48 COHANCE’S Specialized manufacturing capabilitiesAPI Unit-3, Gujrat, India FDF Unit-2, Telangana, India API Unit-2, Andhra Pradesh, India API Unit-4, , Telangana, India API Unit-5, Andhra Pradesh, India o49 reactors, >130Kl capacityoGMPo60 reactors, >40Kl capacity, Unit with Oncology facility oUSFDA (latest in 2019)oEDQM (latest in 2024)oOthers: WHO GMP o68 reactors, >420Kl capacityoUSFDA (latest in 2023)oEDQM (latest in 2017)oOthers: PMDA-Japan, COFEPRIS-Mexico, Korea-FDA, ANVISA-Brazil o46 reactors, >140Kl capacityoEDQM (latest in 2023)o120 reactors, > 520Kl capacityoUSFDA (latest in 2019)oEDQM (latest in 2023)oOthers: Korea-FDA, PMDA-Japan, COFEPRIS-Mexico, ANVISA-Brazil, MOH-Russia, CDSCO, WHO GMPAPI Unit-1, Andhra Pradesh, India FDF Unit-1, Telangana, Indiao1.8Bn OSDs and 350MT Pellets per annumoUSFDA (latest in 2019)oEU GMP (latest in 2023)oOthers: MHRA, Health Canada, EU GMP, PMDA-Japan, MOH-Russia, WHO GMP, DCGI, Saudi-FDA, Taiwan-FDAo480MT Pellets per annum oWHO GMP
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Pg. 49 Contact InformationCyndrella Carvalho, Head - Investor RelationsSuven Pharmaceuticals LtdEmail: cyndrella.carvalho@suvenpharm.comGavin Desa / Rishab BararCDR - IndiaTel: +91 98206 37649/ +91 77770 35061Email: gavin@cdr-india.com / rishab@cdr-india.com
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Thank You