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PresentationMarch 2007
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Corporate Overview
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Corporate OverviewLeading provider of research-driven packaging solutions solely-focused on pharmaceutical industry
– Founded in 1994 and based in Pune, India with global presence
– Manufactures packaging materials to significantly enhance function, physical efficiency and safety of medicines …
• Leading producer in Asia (62% share of Indian barrier blister packaging market)
– … and provides world-class packaging research and clinical trial services
Operates state-of-the-art, award-winning manufacturing and research facilities in India, Singapore, UK and the US– DMF with US FDA facilities in India and Singapore
– "Pioneer Status" awarded by Singapore government
– FDA and DEA approved clinical services facility in the US
– MHRA approved facility in UK
Pioneering and patented packaging technology– Optimum packaging solutions devised in just 4 weeks using patented process (historically has taken pharmaceutical companies up to 2 years)
– Significant cost savings benefits for pharmaceutical companies
– Leading packaging solutions through R&D
Global client base with long-term contracts and 100% customer retention
IndiaSingaporeUSA
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US India
Singapore
Germany
Australia
China
Brazil
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Global FootprintINDIA
Films & foils productionClinical trial services facility – 1st in AsiaResearch facilities – DSIR approvedAward winning – OPPI “Best Vendor” consecutively
SINGAPOREFilms production & research centreClinical trial services facilityPioneer Status from Singapore Govt.
USA Clinical trial services facility14 acre FDA & DEA approved siteFilms & foils secondary production
UK Clinical trial services facilityMHRA approved site
UK
, UK
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Global Customers
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Pharmaceutical Value Chain
MarketFormulation Development
Clinical TrialsDiscoveryDrug Manufacturing
& Packaging
US$130bn US$250bn US$120bn
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Bilcare Connect
Pharmaceutical Value Chain (Cont’d)MarketFormulation
DevelopmentClinical Trials
DiscoveryDrug Manufacturing
& Packaging
Packaging MaterialsPoly filmsAluminium FoilsPaper Composites
Systems
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Packaging MaterialsPoly filmsAluminium FoilsPaper Composites
Systems
Clinical ServicesBatch ManufacturingPrimary PackagingLabelingDistribution & IVRS
Bilcare Connect
Pharmaceutical Value Chain (Cont’d)MarketFormulation
DevelopmentClinical Trials
DiscoveryDrug Manufacturing
& Packaging
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Research ServicesFormulationAnalyticalStability StudiesPackaging AuditPackaging Development
Bilcare Connect
Pharmaceutical Value Chain (Cont’d)
Packaging MaterialsPoly filmsAluminium FoilsPaper Composites
Systems
Clinical ServicesBatch ManufacturingPrimary PackagingLabelingDistribution & IVRS
MarketFormulation Development
Clinical TrialsDiscoveryDrug Manufacturing
& Packaging
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PharmaetcFood Cosmetics FMCG
Competitive Value Chain
Laminates
Foils
Coils
Ingots
Bauxite
Laminates
Coating
Films
Resin
Stationary Credit Card Food Pharmaetc
ALCAN Aluminium-focused EVC (INEOS) Polymer-focused
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Financials
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Financial Highlights
Financial Year ended 31-Mar-04 31-Mar-05 31-Mar-06USDM Audited Audited AuditedProfit and lossRevenues 24.8 37.3 54.8EBITDA 5.2 9.7 15.6EBITDA Margin 21% 26% 29%Profit Before Tax (PBT) 3.2 7.8 13.1PBT Margin 13% 21% 24%Profit After Tax 2.4 5.6 9.0
Balance SheetNetworth 10.3 25.9 35.1Total Debt 11.2 17.3 77.2 *Total Assets 26.7 51.2 122.3Current Ratio 1.1x 2.8x 5.97x
*Includes a USD50m Foreign Currency Convertible Bond
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Sales & Profitability
24.8
37.3
54.8
5.2
9.7
15.6
29%
21%26%
0.0
10.0
20.0
30.0
40.0
50.0
60.0
FY'04 FY'05 FY'06
US
D m
illio
ns
0%
5%
10%
15%
20%
25%
30%
35%
Sales EBITDA EBITDA Margin
Sales CAGR of 30% during FY’04–FY’06
EBITDA CAGR of 44% during FY’04–FY’06
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Bilcare Approach
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Pharma Packaging Research Brand Challenges
Compliance – $150 Bn revenue loss + higher insurance cost
Counterfeit – $50 Bn + brand credibility
Communication – Accidental misuse
Convenience –– Senior citizen
– child protection
– Patient friendly
Cost –– Over-packed
– Shelf life loss
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Pharma Packaging Research Market Landscape
Market size - $3 Bn (2005) to $5 Bn (2010)
Challenges for Pharma are becoming complex– Global supply chain
– Pharma specific requirements
– Boardroom challenges – 5C’s (growth)
Vendors continue to remain commodity suppliers– Local and / or regional
– Product vertical with emphasis on backward integration
– Distribution through agents & distributors
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Pharma Packaging Research Bilcare Strategy
Brand management – Top 1,000 brands of top 200 global pharma– Facilitate exponential growth of customers brands
– Customer’s customer retention
– Therapeutic consolidation – from 5-15% to 35-40%
Strategic markets – Top 18 markets (90%)– US / Canada / Mexico / Brazil / Argentina
– Germany / Switzerland / France / UK
– India / Pakistan / Bangladesh / Turkey
– Japan / China / South Korea / Indonesia / Thailand
Effect– Bilcare emerging as the catalyst for pharma brand consolidation
– Long term contracts for Bilcare with strong margins
– Consistent high growth for Bilcare globally
– Leadership position by 2010
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Case Study: ShelCalBilcare was engaged by ShelCal (Calcium) to develop anti-counterfeiting solutions for
their pharmaceutical products
ShelCal – a market leading brand of calcium tablets based in India
– ShelCal’s market leadership was under threat due to counterfeiting
– Bilcare was engaged to devise a packaging solution to eliminate the counterfeiting
Bilcare Solution
– Drug sensitivity research completed in 4 weeks
– Changed packaging materials for anti-counterfeit
– Packaging designed for brand enhancement
End Result:
– Counterfeiting was essentially eliminated
– ShelCal experienced sales growth of over 30%
– As a result of Bilcare’s efforts, ShelCal’s distinct brand proposition was established
Bilcare’s innovative solution for ShelCal resulted in a multi year contract of over US$ 3.0 million along with packaging development contracts for all leading brands of the company
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Case Study: Cifran
Ranbaxy engaged Bilcare to develop packaging strategy for its leading brand Cifran to counter increasing adverse impact of pass offs and counterfeits
Cifran – a leading Antibiotic brand
– Cifran, the market leader was under threat due to increasing number of pass offs and counterfeit
– Issues of counterfeit were tried to be addressed using isolated solutions
– Brand was looking for a new marketing strategy
– Bilcare was engaged to create a new packaging solution to establish distinct identity as well as eliminate counterfeit
Bilcare Solution
– Packaging designed for brand enhancement based on a dip-stick market survey of various stake holders
– Use of novel packaging material for establishing distinct identity & eliminate counterfeit
End Result:
– Counterfeiting was essentially eliminated
– Brand anticipates quick establishment of its position and a distinct identity of its own with over 15% sales growth
Bilcare gains a multi year contract of over US$ 2.5 million
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Case Study: Anafortan
Khandelwal Labs engaged Bilcare to develop Brand rejuvenation strategy for Anafortan
Anafortan – a market leader in Non opioid analgesics
– Anafortan, a very old brand had its market leadership under threat due to multiple new brands
– Issues of counterfeit were tried to be addressed using isolated solutions like holograms
– Bilcare was engaged to convert packaging into an important marketing tool & also aid in elimination of counterfeit
Bilcare Solution
– Packaging designed for brand enhancement
– Changed packaging materials for eliminating anti-counterfeit
End Result:
– Counterfeiting was essentially eliminated
– Brand experienced sales growth of over 10%
– Anafortan brand established a distinct identity in the market
Bilcare’s bagged a multi year contract of US$ 1.0 million
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Global Clinical Research Management Clinical Research Challenges
Speed of trials – 1 week loss = $20 Mn for $1 Bn new drug
Accuracy of data– Retrial can delay launch by 1-2 years
Global reach– Patient population in US / Europe drying up
Reliability– IPR
– World-class QA Systems
Competent & Focused Outsourced Partner– Important & urgent projects, yet needs to be outsourced
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Global Clinical Research Management Market landscape
Customer in-house ($1 Bn) – waiting for outsourcing
Competition (current outsourced)– Fisher - $300 Mn out of $7 Bn (5% of the total)
– Aptuit - $150 Mn – also in API (conflict)
– Almac - $100 Mn – Europe & US specific
Biotech are virtual companies & require full service partner
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Global Clinical Research Management Bilcare Strategy
Biotech & small size full service contracts
Leverage India (for Asian trials & cost)
Stay focused
Global reach
Leverage IT technology
Effect –
High growth in volume & margin
First mover advantage in Asia
Leadership position by 2010
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Technology & Research
IPR– Transforming products & services company to an IPR company
– Research tagline symbolizes the drive
Technology acquisition– Unique technologies will be acquired in synergy with strategy plan
Application research– Many scientists are getting added to the team
Strategic alliances– Honeywell kind of alliances will strengthen Bilcare’s reach globally
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Opportunities
Acquisitions in both the verticals in future– Need to remain continuously aware
– New possibilities will get emerged because of Bilcare’s unique business model
Strategic business alliances– Products, markets & capabilities can be synergized
US getting into blisters from bottles– 85% of USA distribution is in bottles – big opportunity
Technology breakthroughs – commercialization– Patina has been successfully commercialized
– Few more are on the way
Packaging development outsourcing by big pharma– Big pharma are getting attracted to Bilcare capabilities
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Thank You