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Call Overview • Date: May 16, 2024 • Submission: Transcript submitted to BSE and NSE on May 17, 2024 • Key Participants: • Rodolfo Hrosz (Managing Director) • Rachid Ayari (CFO) • Radhika Shah (Company Secretary) • Agenda: Review of Q1 2024 performance and Q&A session • Availability: Presentation and recording on company website
Strategic Updates • "India for India" Plan: Focus on four pillars: • Diabetes: • Launched Soliqua for premixed insulin users • Volume growth in Lantus post-price reduction • Consumer Healthcare: • Establishing dedicated management team • Updates on merger process • Innovation: • Local innovations and partnerships with Emcure and Cipla • Go-to-Market: • Enhanced market reach and operational efficiency
Financial Performance • Q1 2024 Results: • Impact of NLEM regulation noted • Domestic sales growth: 3% (8% excluding NLEM) • Operating profit before exceptional items down 12% year-over-year • Strategic Partnerships: Expected to enhance business volume despite costs
Consumer Healthcare Strategy • Focus Areas: • Product portfolio enhancement • Consumer-centric approaches • Digital capabilities improvement • Market Performance: Strong across key brands despite challenges
Localized Innovation Strategy • Tailored Approach: Aligning global strategies with local market needs • Partnerships: Cipla and Emcure handle marketing and distribution for certain products
Employee and Operational Insights • Downsizing Impact: Marketing responsibilities shifting to partners • Employee Count Methodology: Change in counting method explained
Product Launches and Market Insights • Soliqua Launch: Targeting premix insulin market • Market Size: INR 1,000 crores for Soliqua • Insulin Market Share: • 8% total insulin market share • 38% share in basal insulin segment
Regulatory and Future Growth • OTC Regulations: Potential for enhanced distribution and consumer engagement • Sales Growth Potential: Increased penetration expected post-regulation
Conclusion • Overall Outlook: Strong performance and growth potential in diabetes and consumer healthcare segments, with strategic partnerships enhancing market reach.
Call Details • Date: February 26, 2024 • Submission: Transcript submitted to BSE and NSE on February 28, 2024 • Key Personnel: • Rodolfo Hrosz (Managing Director) • Rachid Ayari (CFO) • Himanshu Bakshi (General Manager, Consumer Healthcare) • Agenda: Review of 2023 performance and Q&A session • Availability: Presentation and recording on company website
Business Update • "India for India" Plan: Introduced in 2022, focusing on: • Diabetes and consumer healthcare • End-to-end innovation • Go-to-market transformation • Key Achievements: • Unified Diabetes Business Unit established • Diabetes awareness campaign reached over 200 million • New product launches planned
Financial Highlights • Growth: • 12.6% increase in quarterly profit before tax • 5.4% increase in annual sales • Operational Improvements: Savings in operational expenses and improved profit margins
Q&A Session Insights • New Product Launches: Seven projects in the pipeline, including Soliqua • Diabetes Portfolio Integration: Enhances customer-centricity and efficiency • Consumer Portfolio Performance: Market share gains despite challenges • Inventory Levels: Increased due to stockpiling for warehouse relocation • Insulin Prescriptions: Notable rise in smaller towns post price reductions
Expansion Strategy • Focus Areas: • Organic growth in Tier 1 cities for diabetes portfolio • Leveraging existing R&D capabilities in India • Export Plans: Current export share at 18-20%, with growth potential in Russia and Central Asia
Product Performance • Lantus and Toujeo: Both showing growth despite price reductions • Soliqua Launch: Anticipated as a unique pre-mixed insulin product in India
Additional Inquiries • Patent Status of Soliqua: No patent in India, but a global product • Revenue from NLEM: Approximately 39-40% • Impact of Currency Fluctuations: Specific figures not disclosed • Product Cannibalization: New line extensions targeting new market segments • Amaryl Franchise: Performance remains strong despite loss of exclusivity • Export from Goa Plant: About 30% of production is exported
Conclusion • The call concluded with expressions of gratitude from participants.
Call Details • Date of Call: November 15, 2023 • Submission Date: November 17, 2023 • Participants: • Rodolfo Hrosz (Managing Director) • Vaibhav Karandikar (CFO) • Rachid Ayari (New CFO effective December 1, 2023)
Company Performance • Q3 FY23 Highlights: • 2% sales growth despite flat domestic sales • 15% increase in profit before tax • Year-to-date: 3% sales growth and 15% rise in profit after tax • Operational Efficiency: • 10% improvement in operating expenses
Business Reorganization • New Structure: Company reorganized into three business units to enhance customer engagement and operational efficiency.
Demerger Update • Consumer Healthcare Business: • Key milestones achieved in the demerger process • Timeline includes: • Board approval on May 10, 2023 • Stock exchange filings in August and October • Shareholder meeting scheduled for December 18, 2023 • NCLT approval and listing expected by mid-2024 • Target to execute demerger by May 2024
Q&A Session Highlights • Domestic Portfolio Growth: • 4% growth excluding Lantus impact • Sales Force: • Total of 1,500 sales personnel, with 1,000 focused on diabetes • Consumer Business Margins: • Consumer healthcare margins 8% to 10% higher than overall blended margins (~30%) • Topline Growth Concerns: • Price reductions from NLEM impacting sales, but potential for increased volume over time • Estimated growth excluding NLEM impacts at around 5.5% • Expansion Strategy: • Increased doctor reach by 30,000, primarily in tier 1 cities • Ongoing studies for partnerships to extend reach
Product Strategy • Insulin Products: • Lantus and Toujeo marketed for different patient profiles • Upcoming launch of Soliqua for the premix segment • Inorganic Growth Strategy: • Actively seeking organic and inorganic opportunities, especially post-demerger
Conclusion • Final Remarks: • Gratitude expressed for participation • Wishes for a Happy Diwali and New Year from Rodolfo Hrosz • Call Closure: • Moderator thanked attendees and invited them to disconnect.
Call Overview • Date: May 11, 2023 • Submitted transcript to BSE and NSE on May 24, 2023 • Key Participants: • Rodolfo Hrosz (Managing Director) • Vaibhav Karandikar (CFO) • Radhika Shah (Company Secretary)
Company Performance • Q1 2023 Highlights: • 21% growth in operating profit • 12.2% compounded growth rate in shareholder value over the past decade • Strategic Focus: • "India for India" strategy with five growth pillars • Commitment to corporate social responsibility and environmental sustainability
Organizational Restructuring • Streamlined from eight to three business units • Proposed demerger of consumer healthcare from pharmaceutical division • Aim to enhance focus and resource allocation
Proposed Transaction • Creation of two separate entities: • Sanofi India Limited (general medicines) • Sanofi Consumer Healthcare India Limited (consumer healthcare) • Shareholders to receive one share of CHC for each share of Sanofi India • Expected closure by mid-2024, pending approvals
Business Segments • General Medicines: • Focus on therapeutic areas, innovation, and market strategies • Consumer Healthcare: • Aim to become a fast-moving consumer healthcare company • Plans to enhance portfolio and digital capabilities
Value Unlocking • Demerger expected to provide clearer evaluation of distinct businesses • Focused growth strategies to improve healthcare access in India
Q&A Session Highlights • Growth Breakdown: • Both segments performing well; no major distinctions noted • Consumer Healthcare Growth: • Reported growth rate of 8-8.5% over the past five years • Diabetes Care Strategy: • Increased sales force and new product launches to address unmet demand • Product Innovation: • Plans to introduce global brands and enhance local manufacturing • Pricing Impact: • Effects of revised pricing to be seen in Q2; operating profit percentage to remain constant
Conclusion • Management expressed gratitude to participants and reiterated the upcoming annual general meeting.
Call Overview • Date: February 24, 2023 • Communication to BSE and NSE on February 28, 2023 • Key Executives: Rodolfo Hrosz (Managing Director), Vaibhav Karandikar (CFO), Radhika Shah (Company Secretary) • Agenda: Company strategy and performance for Q4 and FY '22, followed by Q&A • Transcript available on the company's website
Company Position • Market Cap: Approximately INR 127 billion • Workforce: 2,300 employees • Legacy: 67 years in the Indian pharmaceutical market • Ranking: Among the top three multinational pharmaceutical companies in India • Growth Opportunity: Significant treatment gap for noncommunicable diseases (NCDs), especially diabetes
Strategic Focus • "India for India" Growth Strategy: • Diabetes: Strengthening product portfolio and increasing disease awareness • Consumer Healthcare: Investing in Allegra brand and enhancing consumer insights • End-to-End Innovation: Leveraging global products and increasing local production • Go-to-Market Strategy: Customer-centric hybrid model and e-commerce initiatives
Financial Performance • Q4 2022: • 2% decline in sales; 3.8% growth on a comparable basis • Profit before tax increased by 33% (22% on a comparable basis) • Full Year: • Domestic retail business saw a 2% decline; 3.7% increase on a comparable basis • Focus on organic growth through innovation and partnerships
ESG Commitment • Emphasis on enhancing ESG initiatives and developing an integrated report for transparency
Q&A Highlights • Tax and Pricing: Clarifications on arm's length transactions and pricing impacts on specific brands • Market Strategy: Discussion on maintaining positions in oral diabetic and cardiology segments • Product Launches: Confirmation of insulin aspart approval and future product introductions • Prescription Data: 2% increase in prescriptions for diabetes products
Conclusion • The call concluded with a focus on the company's commitment to innovation and growth strategies, with an announcement of the upcoming annual report and AGM.