Marksans Pharma Ltd. — Investor Presentation 2021

Aug 11, 2021

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Investor Presentation
Q1FY22 | August 11, 2021
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BSE: 524404 | NSE: MARKSANS | ISIN: INE750C01026 ©2019 – Marksans Pharma Limited, All Rights Reserved.

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Safe Harbor

Certain statements in this our future are forward which involve a presentation concerning growth prospects looking statements, number of risks, and uncertainties that could cause actual results to differ materially from those in such forward looking statements. The company's results may be affected by factors including, but not limited to, the risks and uncertainties in pharmaceutical research and development; competitive developments; regulatory actions; the extent and duration of the effects of the COVID-19 pandemic; litigation and investigations; business development transactions; economic conditions; and changes in laws and regulations, including health care reform. The company undertakes no duty to update forward-looking statements except as required by applicable law.

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Contents
1 Q1FY22 Highlights
2 Company Overview
3 Business & Opportunity by Market Size
4 5 Year Performance Review
5 Key Focus Areas
6 Leadership Team
7 Investment Rationale
8 ESG & Corporate Governance
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3

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Management Commentary

Mark Saldanha

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M A N AGI N G DI R EC TOR A N D C EO
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“

We recorded a sales growth of 5.4% led by increased penetration in regulated markets despite pandemic induced logistics issues. We drove gains from operating efficiencies and a debt free balance sheet resulting in our bottom line increasing by 26.8% in Q1FY22 on a year on year basis.

We are to have OrbiMed as a financial in our mission to become a delighted partner global pharmaceutical company. We will continue to invest in our businesses, with Orbimed’s global network and resources enabling us to accelerate our growth momentum in the long term.”

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349.0 77.3 62.6 225.4
+ 5.4% + 10.5% + 26.8 % (Jun’21)
(YoY) (YoY) (YoY) Cash (₹ cr.)
4
Q1FY22 Revenue (₹ cr.) Q1FY22 EBITDA (₹ cr.) Q1FY22 PAT (₹ cr.)
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Q1FY22 Highlights

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Revenues EBITDA
₹ 349.0 Cr ₹ 77.3 Cr
10.5% YoY
5.4% YoY
110 Bps
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Financial Highlights

• Operating Revenue was ₹ 349.0 cr. ; a growth of 5.4% YoY as compared to ₹ 331.2 Cr. in Q1 FY21

• EBITDA was at ₹ 77.3 cr.; growth of 10.5% YoY

• EBITDA margin expanded by 110bps to 22.2% in Q1FY22 as against 21.1% in Q1FY21

• PAT increased by 26.8% YoY to ₹62.6 Cr. due to operational efficiencies which offset higher input costs

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PBT
₹ 74.8 Cr
21.8% YoY
290 Bps
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PAT
₹ 62.6 Cr
26.8% YoY
270 Bps
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Business Highlights

• Continuing our expansion strategy in existing markets, we launched 2 new products in UK / Europe markets

• R&D spend of ₹ 4.9 cr. at 1.4% of sales in Q1FY22

• Capex for Q1FY22 at ₹ 9.9 cr.

• India Ratings upgraded Credit Rating to A from IND A-

Credit Rating

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EPS
₹ 1.5
25.9% YoY
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₹ 1.5
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IND A

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Upgraded from IND A-

Preferential Issue

• Issued 493.2 lakhs optionally convertible warrants at ₹ 74.0 per warrant totalling to ₹ 365.0 cr. to OrbiMed, a global leading healthcare investment firm with $19bn AUM.

• OrbiMed to own ~10.7% stake in the Company post option exercise.

Also issued 10.0 lakhs warrants to the Promoter, Managing Director and CEO, Mr. Mark Saldanha at the said price of ₹ 74.0 per

• warrant.

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Financial Highlights – Profit and Loss Statement

Particulars (₹ cr.)	Q1FY22	Q4FY21	Q1FY21	YoY
Operating Revenue	349.0	330.2&	331.2	5.4%
Gross Profit	186.7	203.5	191.6	-2.6%
Gross Profit Margin %	53.5%	61.6%	57.9%	-440 bps
EBITDA	77.3	95.4	70.0	10.5%
EBITDA Margin %	22.2%	28.9%	21.1%	110 bps
Finance Costs	1.0	2.8	1.6	-37.7%
Depreciation & Amortization	7.5	1.3	7.2	3.1%
Other Income	5.9	6.0	0.2	3133.0%
Profit before tax	74.8	97.2	61.4	21.8%
Taxes	12.2	17.7	12.0	1.2%
Net Profit	62.6	79.5	49.4	26.8%
Net Profit Margin %	17.6%	23.6%	14.9%	270 bps
Diluted EPS (INR)	1.5	1.9	1.2	25.9%

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& Revenue impact on account of shipment of goods due to lockdown deferred to next quarter

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Consistent Performance on yearly basis

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Operating Revenue
(₹ cr.)
&
356.5 358.4 349.0
331.2 330.2
Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22
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EBITDA (₹ cr.) & EBITDA Margin %
28.9%
25.4%
23.3%
22.2%
21.1%
91.1 95.4
83.2
77.3
70.0
Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22
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Gross Profit (₹ cr.) & Gross Profit Margin %
61.6%
60.5%
54.1% 53.5%
57.9%
216.9
203.5
191.6 192.8 186.7
Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22
PAT (₹ cr.) & PAT Margin
23.6%
17.6%
16.6%
14.9%
14.1%
79.5
62.6
58.9
49.4 50.7
Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22
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& Revenue impact on account of shipment of goods due to lockdown deferred to next quarter

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• Gross margin impact on account of higher raw material prices and associated logistics costs due to lockdown

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Financial Metrices

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ROCE
31.6% 32.6% 30.7%
28.9%
27.0%
Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22
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Net Debt to EBIDTA (x)
-0.4
-0.5
-0.6 -0.6 -0.6
Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22
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ROE
24.5% 26.3% 25.4%
22.8%
20.8%
Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22
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Fixed Asset Turnover Ratio (x) []
4.7 &
4.5
4.4
4.3
4.0
Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22
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• Includes Tangible net fixed assets, CWIP and Intangibles

& Revenue impact on account of shipment of goods due to lockdown deferred to next quarter

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Company Structure - Parents & Subsidiary
Marksans Pharma (UK) Limited
Distribution of quality
Marksans Holdings Limited generic pharma
Only OTC
Manufacturer of range of
162+
OTC & Rx products;
product licenses; Regional sales
Manufacturer of 50+ products portfolio
Manufacturer of development across Asia
OTC Liquids &
Plan to launch 3-4 new
Rx and OTC liquid
(China, Japan, Singapore,
Ointments
products in FY22
products Vietnam, Sri Lanka and South
450+ OTC/SKU
Wholesale Korea)
products
distributor of
50+ products in generic pharma
pipeline.
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BUSINESS MODEL -

GEOGRAPHIC MIX -

Business Overview

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RoW
US &
3.8%
North
Product Portfolio FY21 (₹ Cr.) America Australia
10.9%
39.7%
Pain Management 604
Anti-Diabetic 150
Cough & Cold 124
Q1FY22
Cardiovascular System(CVS) 124
Gastrointestinal 101
Central Nervous System(CNS) 83
Anti-Allergic 57
Vitamins, supplements 47
Europe, UK
Anti-Biotic 46 45.6%
Anticancer 26
Anti hair fall (male) 14
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~96% of revenues comes from regulated markets

Forwardintegrated business model Presence in niche softgel segment

BUSINESS DESCRIPTION -

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Marksans Pharma Ltd., headquartered at Mumbai, is engaged in Research, Manufacturing & Marketing of generic pharmaceutical formulations

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Key focus areas lie in

OTC & prescription (Rx) drugs

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Company manufactures tablets (plain, enteric coated and film coated), hard & soft gelatin capsule, oral liquids and ointments

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Its manufacturing facilities are accredited by

USFDA, UKMHRA and Australian TGA

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Focused Business Model

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• Focus on Forward Regulated Markets Integrated Business Model

• • Marksans commenced operations as a formulations manufacturing enterprise

• • The Company entered front-end marketing in regulated markets through acquisitions

• • The Company was among a few Indian mid-sized companies with frontend marketing capabilities

• • The Company invested in a state of- theart R&D facility, strengthening integration

• Marksans commenced business with CRAMS directed at the UK and Australian markets

• • Entered the regulated Australian market with the acquisition of Nova in 2005

• • Entered the regulated UK market with the acquisition of Bell Sons & Company Ltd. in 2007 and Relonchem Limited in 2008

• Entered the US market in 2011-12 and acquired Time-Cap Laboratories in 2015

Wider Product Basket • Marksans commenced its journey with products addressing the pain management segment

• The Company focused on high-growth areas impacted by lifestyle disorders

• • The Company launched soft gelatin capsules, a niche category

• • The Company now offers products across >10 therapeutic segments

• The Company now has a global presence across 25 countries

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Forward Integrated Business Model

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R&D and Manufacturing Supply chain and distribution End Consumers
AU S T R A L I A
Retail chains
U K
Goa, India
E U R O P E
N O R T H Pharmacy Stores
A M E R I C A
Southport, UK
C A N A D A
R O W EXPORT
Hospitals
Farmingdale, USA
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Strategic Focus on Regulated Markets

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Global Footprint

Regulatory Approvals

Marksans Pharma entered into strategic tie-ups and acquired key players in major markets to expand its global footprint

These markets are empowered with regulatory approvals which allows the company to sell its products without restrictions

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Proprietary Marketing Presence Marksans is among a handful of Indian players with a proprietary marketing presence in the world’s largest pharma market such as US, UK and Australia

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Higher Margins

Company can generate higher margins by eliminating third parties from the value chain

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Expansion in Regulated

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25+ Countries

Markets

Currently, the company markets products in 25+ countries with the UK and the US being the largest

The Company expects to expand in the regulated markets through integrated product development, cGMP compliance, regulatory compliance and utilization of latest technologies

Expansion to other developed

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~96%
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markets

Marksans Pharma generates ~96% of its revenues from regulated markets

Other prominent markets include Australia, New Zealand, Canada and several other European countries

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USA
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Australia
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UK
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New Zealand
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Niche Formulations with few Competitors

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LIMITED COMPETITION
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HIGH BARRIERS TO ENTRY

DIFFERENTIATED OFFERINGS

Focused on softgel capsules with a view to build a differentiated set of offerings in the crowded generics market

Given the challenges in preparing Softgel formulations plus other economic, technical and patent constraints there are not many players in this segment

High capex requirements and operational costs further restrict entry MANUFACTURING CAPABILITIES WITH REGULATORY APPROVALS

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NEW APPROVALS
6 new approvals are awaited in US
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SELECTIVELY TARGETED LARGER MARKETS

Marksans has filed softgel products in all major markets including USA, UK, Europe, Canada, Australia & Russia. Of this, US alone is potentially a USD9 billion market

Marksans’ Goa facility has a capacity to turn out 2.4 billion softgel capsules per annum, and has all the necessary approvals by USFDA, UKMHRA, TGA & other key regulatory authorities

Marksans Pharma is currently one of the most active Indian firms focused in Softgel segment

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UK Business & Opportunity by Market Size

COMPANY PRESENCE

OVERVIEW OF THE MARKET

The UK & EU pharmaceutical market is estimated to grow from ~USD 468 billion in 2016 to ~USD 585 billion by 2030, at a CAGR of 1.6%, driven primarily by a robust life sciences industry.[*]

• One of the top 5 Indian pharma companies in the UK.

• UK business is driven by its two subsidiaries, Relonchem and Bell.

OUTLOOK

• Bell has 50+ products in the pipeline in different stages to cater to UK market.

• Relonchem is awaiting approval for

• Bell has a strong OTC portfolio with 450+ OTC/SKU products and 50+ products in pipeline.

• ~20 MAs in the UK market.

• Relonchem’s portfolio comprises 162 MA’s.

• Source: Cefic.org

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The UK
(Q1FY22) 159.2
(₹ Cr.)
Total Revenue
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10.4%
Y-o-Y Growth
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45.6%
Contribution to Total
Revenues
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Expansion Strategy for UK

UK BUSINESS Q1FY22

ORGANIC GROWTH

NEW PRODUCTS IN PIPELINE

INORGANIC

GROWTH

UK BUSINESS FY25

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• Wide UK customer base and 100% reach within the distribution channel.

• Broad and diversified range of product portfolio with well recognized brands.

• Captured a large share of OTC and generic markets.

• Working on receiving USFDA approval for Southport facility to commence exports to USA.

• Increase in partnership with major national distributors, pharmacies, retailers and chemist wholesalers.

• Developing a range of narcotic & dermatology products

• Investment in manufacturing facility to develop oral liquid solutions

• 20 MA filings planned in next 2 years

• For rapid expansion into various therapy areas and other markets including UK and Europe, the company plans to acquire product licenses.

• Sustainable revenue growth

• Consistently delivering on profit margins

• Focus towards Europe, USA and other export destinations

• One of the key OTC product supplier and private label manufacturer in the industry

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US Business & Opportunity by Market Size

OVERVIEW OF THE MARKET

The US holds over 30-40% of the global pharmaceutical market. Nominal spend on medicine was USD 511 billion in 2019, and is expected to grow at projected CAGR of 4-5% over near term, due to favorable government programs and policies.

COMPANY PRESENCE

• In June 2015, Marksans acquired Time-Cap Labs which enabled Marksans to expand its offering in US market.

• 50+ products in various therapy area segments.

OUTLOOK

• Strengthen company’s US operations in the coming years

• Add 3-4 new products to its portfolio during the year under review

• Proprietary marketing presence with 100% integration of Time-Cap Laboratories.

Marksans’ differentiated product offering of Softgel Capsules alone has market potential of USD 9 billion in US

• Strong distribution channel marketing for both OTC and Rx products.

*Source: PwC

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138.8
(₹ Cr.)
The United States
Total Revenue
(Q1FY22)
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3.6% 39.7%
Contribution to Total
Y-o-Y Growth
Revenues
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Expansion Strategy for US

US BUSINESS Q1FY22

ORGANIC GROWTH

NEW PRODUCTS

IN PIPELINE

INORGANIC

GROWTH

US BUSINESS FY25

• 50+ products in various therapy area segments in both OTC & Rx

• • Positioned in the niche soft gel category

• • 23 ANDAs filled till date

• Capacity increased by adding more packaging and manufacturing lines

• Expanding presence in other North American regions

• Increase in ANDA fillings for soft gel dosage

• Partnership with leading retailers

• • Exploiting untapped potential of drugs going off patent

• Plan to file 12 ANDA’s

• Plan to launch 3-4 new products in FY22

• Planning to acquire ANDAs to cut short development time

• Increasing capacity in India and US facility to meet future requirements

• Expected to grow rapidly to achieve a high growth platform in FY25

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• Australia Region Business & Opportunity by Market Size

OVERVIEW OF THE MARKET

Australia’s pharmaceutical market is set to rise from $30.5 billion in 2018 to US$ 40.1 billion by 2024 registering a CAGR of 5.1%[*]

COMPANY PRESENCE

• Marksans carries out business operations in Australia and New Zealand through its subsidiary Nova Pharmaceuticals.

• Nova is one of the leading generics and private label suppliers in Australia.

OUTLOOK

• Australia and New Zealand will continue to remain focus markets for the Company.

• Increased MA filings planned in next 2 years

• Tie-ups with topmost retailers & pharmacies in Australia, like Woolworths Ltd., Coles Mayer Ltd., Aldis, Metcash and Fauldings.

• Presence in key therapeutic areas.

*Source: IBIS 2018

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Australia & New Zealand
(Q1FY22)
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38.2
(₹ in Cr.)
Total Revenue
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11.8% 10.9%
Contribution to Total
Y-o-Y Growth
Revenues
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Y-o-Y Growth
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• Emerging Market Business & Opportunity by Market Size

OVERVIEW OF THE MARKET

ROW includes markets of South East Asia, MENA, Russian Federation & Africa

COMPANY PRESENCE

• Presence in emerging markets such as South East Asia, MENA, LATAM, CIS and Africa

OUTLOOK

• In process of launching new products and obtaining product registration for ~175 developed products in emerging markets.

• Targeting four major clusters such as South East Asia, Russia & CIS, Middle East and Africa

• In these countries, specific countries like Kenya, Ukraine, Sri Lanka, Cambodia and Myanmar are targeted

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Rest of the World
(Q1FY22)
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13.2
(₹ in Cr.)
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Total Revenue
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-31.3%
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Y-o-Y Growth
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3.8%
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Contribution to Total Revenues

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Manufacturing Capabilities

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Goa, India • Manufactures oral solid tablets, C APAC I T Y ACC RED I TATI ON S and soft and hard gelatin 2.4 bn softgel and hard capsules gelatin capsules per annum • Ongoing expansion for adding new 6 bn manufacturing lines solid tablets per annum Southport, UK • Manufactures non-sterile liquids, CAPACI T Y ACCRED I TATI ON S ointments and powder sachets 2 bn bottles per annum • Supplies to UK, West Africa & 1 bn Middle East tubes per annum 1 bn sachets per annum

Farmingdale, USA • Manufactures C APAC I T Y ACC RED I TATI ON S hard gels, tablets and capsules 6 bn tablets and hard • Spread over an area of 7000 sq. m capsules per annum • "Made in the USA” product offering • Added incremental packaging lines

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RECENT KEY PRODUCT L AUNCHES

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R&D and Product Launches Highlights

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R&D Expenditure (₹ in Cr.)
1.4% 1.4%
1.5%
0.6% 18.9
0.6% 0.7%
5.3 14.6
8.3
4.5
4.9
FY17 FY18 FY19 FY20 FY21 Q1FY22
R&D Expenditure % of sales
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Brand	Composition	Therapy Segment	Market
**METOZOLV (Q1FY22) **	Metoclopramide 10MG	Gastrointestinal	UK
CRESTOR (Q1FY22)	Rosuvastatin - 5,10, 20, 40 MG	Cardiovascular	UK
COZAAR	Losartan Potassium – 25, 50 & 100 MG	Cardiovascular	UK
TAZAC, AXID	Nizatidine – 150 & 300 MG	Gastrointestinal	UK
LYRICA	Pregabaline- 25, 50, 100, 150, 200 & 300 MG	Central Nervous System	UK
IMURAN	Azathioprine 50 MG	Immunosuppressant	UK
TOFRANIL	Imipramine 25 MG	Central Nervous System	UK
LORATIDINE SGC	Claritin	Antihisyamine	Australia
RISPERDAL	Risperidone	Central Nervous System	UK
KEPPRA	Levetiracetram – 750mg, 1000mg	Central Nervous System	UK
ZOLOFT	Sertraline – 100mg	Central Nervous System	UK
ADVIL MINI	Ibuprofen(Min) SGC – 200mg	Pain Management	UK USA
PANADOL RAPID	Paracetamol (Rapid) 650mg	Pain Management	Australia
MUCINEX	Mucinex Fast / Sinus Max	Cough & Cold	USA

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Continued focus on R&D investments leading to a robust pipeline of new developed & pipeline products

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Plans to enhance portfolio with

addition of 12-13 products every year

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Focus is on developing soft gels and different delivery system like extended release, liquid, OTC products and ointments

R&D Centres 4 50+ Scientists

Products 50+ in Pipeline 350+

Dossiers filed 300

Approved ANDAs/MAs

25+

Filed ANDAs/MAs

25

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Financial Highlights

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Operating Revenue (₹ cr.)
CAGR : 15.7%
1376.2
1134.2
1000.1
912.7
767.2
FY17 FY18 FY19 FY20 FY21
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EBITDA (₹ cr.) & EBITDA Margin

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24.7%
17.0%
13.2%
8.6% 339.6
5.8%
192.3
132.1
44.7 78.4
FY17 FY18 FY19 FY20 FY21
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Gross Profit (₹ cr.) & Gross Profit Margin
50.2% 49.9% 56.8%
42.7%
40.2%
781.1
566.4
502.1
389.6
308.4
FY17 FY18 FY19 FY20 FY21
PAT (₹ cr.) & PAT Margin
17.2%
10.6%
8.0%
238.5
3.9%
1.5% 120.8
11.3 35.8 80.4
FY17 FY18 FY19 FY20 FY21
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Financial Ratios

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ROE
26.3%
18.6%
14.6%
2.6%
7.5%
FY17 FY18 FY19 FY20 FY21
Net Debt to EBITDA (X)
1.9
1.0
0.5
-0.6
-0.4
FY17 FY18 FY19 FY20 FY21
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ROCE
32.6%
24.6%
19.1%
3.2%
10.4%
FY17 FY18 FY19 FY20 FY21
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Fixed Asset Turnover Ratio (x) []
4.4
4.0
3.6
2.9 3.3
~
FY17 FY18 FY19 FY20 FY21
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• Includes Tangible net fixed assets, CWIP and net Intangibles

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Segmental Mix

Therapeutic Segment-Wise YoY

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100.0%
6.8%
8.2%
10.2%
11.7%
13.9%
90.0%
7.5%
8.3%
8.6%
8.6%
7.3%
80.0%
12.0% 8.8% 20.6%
18.4%
10.9%
70.0%
5.2%
11.7% 6.0%
6.3% 6.7%
60.0%
9.0%
14.2%
12.4%
13.8% 13.1%
50.0%
9.0%
14.6%
40.0%
15.4%
14.5%
15.4%
30.0%
43.9%
20.0%
35.1%
31.4% 30.8%
29.6%
10.0%
0.0%
Mar-17 Mar-18 Mar-19 Mar-20 Mar-21
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Pain management Cardiovascular System (CVS) Cough and cold Central Nervous System (CNS) Anti-diabetic Gastrointestinal

Segment Revenue YoY

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100.0%
90.0%
80.0%
44.1%
51.0%
54.7%
70.0% 58.0% 58.6%
60.0%
50.0%
40.0%
30.0%
55.9%
49.0%
45.3%
20.0% 42.0% 41.4%
10.0%
0.0%
Mar-17 Mar-18 Mar-19 Mar-20 Mar-21
RX OTC
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Others
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Global Reach

Enables Reduction in Country Risk

Company’s business is classified under 4 heads:

1 North America/ US generics

2 Europe/UK generics

• 3 Australia and New Zealand

Rest of the world (RoW) generics 4 (CIS, Middle Eastern, African and South-East Asian countries)

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R EV EN U E M IX
5.6%
3.4% 3.0% 4.2% 4.6%
10.9%
13.8% 12.4% 10.6%
12.0%
37.3% 45.5% 42.3%
41.3%
45.0%
45.5%
42.5%
40.7% 41.1%
38.5%
FY17 FY18 FY19 FY20 FY21
US, North America Europe, UK Australia, NZ RoW
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Key Focus Areas

1

2

3 4

STRATEGY

Expansion

Expansion of current product portfolio in regulated market

Product Launch

New product development and launch

Inorganic Expansion

Inorganic expansion to enhance manufacturing capabilities and product portfolio

Backward Integration Backward integration into API manufacturing

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GROWTH LEVERS

The company generates ~96% of its revenue from regulated markets and expects to further expand in these markets through continued push of existing products in regulated and other related geographies

The company has prepared a pipeline of new products for the UK and USA markets that are expected to drive revenue growth by FY25

The company has plans to acquire manufacturing assets in India as well as marketing licenses in Europe and USA to expand business operations in regulated markets

The company has a robust forward integrated business model and plans to backward integrate into API manufacturing (for captive consumption thereby having presence in the entire value chain)

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Leadership Team

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MR. MARK SALDANHA M an ag i n g Di re ct or & C EO

Mr. Saldanha is the founder promoter of the company. Prior to Marksans, he had been associated with Glenmark Pharmaceuticals Ltd. as a Whole Time Director. He is well versed with the overall management of the company and has vast experience across the marketing, production and finance functions.

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MR. VARDDHMAN JAIN Wh ol e - T i me Di re ct or.

Mr. V.V. Jain, M. Pharm (Pharmaceuticals) has 25 years experience in Pharmaceutical industry with various multinational organizations. He is specialized in the area of manufacturing, quality R&D, compliance & regulatory affairs both for API and FDF manufacturing. Mr. Jain has successfully handled several regulatory inspection including USFDA, MHRA, PMDA Japan and WHO & also built sound Internal processes to clear the said tests.

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MR. SATHISH KUMAR MD – Mark san s Ph arma UK Ltd .

Mr. Sathish Kumar is Managing Director of Marksans Pharma (UK) Ltd. & manages affairs of Bells & Sons (Druggists) Ltd and Relonchecm Ltd, both step down operating subsidiaries of Marksans Pharma (UK) Ltd. He has done masters in pharmacy and has over 20 years of experience in Pharma industry working across Production, Planning and inventory Management, Formulation development, Regulatory, Technical, Commercial, Sales and Business development.

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MR. DAVID MOHAMMED MD- Pharmaceuticals Australasia pty ltd

Mr. Mohammed held the positions of the Managing Director Australasia and Marketing Director Asia, Africa and Australasia at Valeant Pharmaceuticals for over 7 years, prior to Nova Pharmaceuticals.

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MR. JITENDRA M SHARMA C h i e f F i n an ci al Of f i ce r Mr. Sharma is a qualified Chartered Accountant and Cost Accountant with over 20 years experience in financial functions including treasury and forex management. He has expertise in the areas of costing, fund raising and internal control systems. He is a director in MPL’s subsidiaries, Marksans Pharma (UK) Ltd, Marksans Pharma Inc. (USA), Nova Pharmaceuticals, Australia and Relonchem, UK. 34

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Investment Rationale

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Widening Product Portfolio

Company is widening its products portfolio in the complex and high-margin generics segment.

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Engaging R&D Team

Marksans is among a few mid and smallsized pharma companies to have created an integrated business model by engaging its R&D team in Goa and Navi Mumbai for creating and filing dossiers across major markets.

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Key Markets

The US, the UK and Australia are the key Marksans’ markets with all of them being now empowered with all regulatory approvals.

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Debt Free, Cash Surplus Balance Sheet

Marksans has cash and cash equivalents of ₹ 225.4 cr. and a debt free balance sheet.

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Amongst Largest Pharma Market

Marksans is among a handful of Indian players with a proprietary marketing presence in the US which is world’s largest pharma market.

Full Integration for Higher B2C Revenue, Increase Margins

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Marksans plans to invest in additional Front End Distribution, Formulation capacities and API business, which will make it a fully integrated pharma business, secure supply chain thereby leading to Higher B2C . revenue and increase margins

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Investment Rationale

Sustainable business model with strategic focus on regulated markets with markets of USA, UK, Australia and New Zealand contributing to c. 96% of total revenues.

1

USFDA, UKMHRA, TGA-Australia accredited and GMP compliant facilities across its key regions providing for a low-cost manufacturing base.

2

Experienced and professional management team 3 with strong line of operations.

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4
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Company has ability to pursue value-accretive and prudent M&A opportunities and has a successful track record of integrating acquisitions.

5

6

7

8

Forward integrated business model with presence across the pharma value chain including in-house R&D centers, owned and outsourced manufacturing set up and widespread supply chain and distribution set up through subsidiaries in USA, UK and Australia.

Wide range of product offerings and one of the most active Indian firms focused in Soft gel.

Continued focus on R&D investments leading to a robust pipeline of new developed and under development products to add onto its existing 300+ approved ANDAs/MAs.

Delivering robust and consistent financial performance with Q1FY22 revenue growing at 5.4% Y-o-Y and Q1FY22 PAT growing 26.8% Y-o-Y and a net cash balance sheet.

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Orbimed Investment Update

• Orbimed, a Global Investment Firm with US$ 19 bn assets under management has invested in 493.24 lakhs convertible warrants at ₹74.00 per warrant totaling to ₹365 cr.

• Orbimed has an option to convert the warrants into equity shares and will thereafter own 10.7% stake in the Company

Investment Rationale

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The Way Forward

• ✓ Highly experienced management

• ✓ Differentiated Business Model

• ✓ Utilise Orbimed’s resources and expertise in the global healthcare sector

• ✓ Broad OTC and prescription product portfolio

• ✓ Enable Marksans accelerate its endeavour of becoming a fully integrated global pharma company

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Shareholder Information

Shareholding as on June 30, 2021

Promoters 48.25% (Shares pledged – Nil)

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Others
48.05%
FII
DII
3.14%
0.56%
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Share Information (as on June 30, 2021)	Share Information (as on June 30, 2021)
NSE Ticker	MARKSANS
BSE Ticker	524404
Market Cap (INR Cr)	3,530.3
% free-float	51.75%
Free-float market cap (INR Cr)	1,826.0
Shares Outstanding	40,93,13,698
3M ADTV (Shares)*	1,02,46,532
3M ADTV (INR cr)*	78.7
Industry	Pharmaceuticals

*Source: BSE, NSE

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ESG Philosophy

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ENVIRONMENTAL
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• Efficient use of resources to minimize the waster generation.

• Priority to energy conservation measures including regular review of

• energy generation and consumption and effective control on utilization of energy.

• Committed to protect environment and ecological balance also maintaining quality of soil, air and water.

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SOCIAL
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• Company is actively contributing to the social and economic development and build a better sustainable way of life for weaker sections of society.

• Ensures social and economic dignity and freedom regardless of nationality, gender, race, economic status or religion to all its talents at all level.

• Committed to improving the quality of life of the local community and society at large.

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GOVERNANCE

• Committed to good corporate governance to achieve long term corporate goals and to enhance shareholders value.

• Highly competent and diverse board of directors.

• Highest degree of transparency, responsibility and delegation in all facets.

• Internal Control & Policy for managing conflict of interest and code of conduct.

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ESG at Marksans

Marksans along with Ministry of Health, Government of Goa is helping in Women and child development, professionalizing Anganwadis and national nutrition mission in Goa. Company has provided fire extinguishing equipment to the fire department, Government of Goa.

HELPING WOMEN & CHILD DEVELOPMENT

PROVIDE FIRE ' Company has provided fire extinguishing equipment to the fire department, Government of Goa. EXTINGUISHING EQUIPMENT S PARTNER WITH Partnering with “Cherish Life India Foundation” we provided medical treatment to under ” LIFE INDIA FOUNDATION privileged society suffering from cancer and other blood disorders. DISTRIBUTED FREE MEDICINES Marksans & “Sri Sathya Sai Mobile Medicare Project” has distributed Free medicines to the TO BACKWARD SEGMENT

“ ” CHERISH LIFE INDIA FOUNDATION

Marksans & “Sri Sathya Sai Mobile Medicare Project” has distributed Free medicines to the needy and backward segment of society.

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Corporate Governance Philosophy

We at Marksans Pharma Ltd adhere to following principles : 1 Conducting Business in Ethical, Transparent and Accountable manner. 2 Producing goods which have a sustainable life cycle. 3 Adherence to ethical working standards to ensure the wellbeing of all employee. 4 Effective management and distribution of wealth. 5 Maintain a strong track record of withholding & promotion of Human rights. 6 Tracing Emission/Waste and maintain them below permissible levels 7 Application of Best management practices. 8 Business continues to create value for customer and consumer in a responsible manner.

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Contact Us

INVESTOR RELATIONS TEAM AT MARKSANS PHARMA

Jitendra Sharma

Ravi Udeshi/ Rahul Thakur (Christensen Investor Relations)

(CFO)

Marksans Pharma Ltd Tel: +91 022 40012000 jitendra@marksanspharma.co m

Christensen Investor Relations Tel : +91 22 4215 0210 rudeshi@christensenir.com rthakur@christensenir.com

CORPORATE OFFICE

11[th] Floor Grandeur, Off Veera Desai Road, Opp Gundecha Symphony, Andheri (W), Mumbai – 400 053, Maharashtra - India

© 2020 Marksans Pharma Limited, All Rights Reserved.

“Marksans Pharma” and The Marksans Pharma Logo are trademarks of Marksans Pharma Limited. In addition to Company data, data from market research agencies, Stock Exchanges and industry publications has been used for this presentation. This material was used during an oral presentation; it is not a complete record of the discussion. This work may not be used, sold, transferred, adapted, abridged, copied or reproduced in whole on or in part in any manner or form or in any media without the prior written consent. All product names and company names and logos mentioned herein are the trademarks or registered trademarks of their respective owners.

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