Thread by @EquityBuzzz

#lauruslabs Q2 EC transcript

Laurus Synthesis Private Limited ,CDMO subsidiary signed multi-year contract with global life science company in Q2 ,entails complete drug development & mfng portfolio niche APIs

Evolving China issues - impact API prices,RM,logistics

#Q2updates

Confident Rev target billion in fy23

Formulations
Rev 495 cr, 👍10% yoy
Share - 41% vs 35% in fy21

LMIC
launched triple combinatn of Tenofovir ,Alafenamide

US mkt
Filed 2 ANDAs, 4 in H1
Total 30
9 approvals, 9 tentative

Canada
11 approvals
Launched 5 ,2 in H2

#LAURUS

MPP & Merck licensing agreement for Molnupiravir
MPP & laurus partner in HCV & FC drugs, to approach for Molnupiravir

FDF
added 1bn capacity in Q1
Brownfield Capex to achieve 10bn unit capacity in Formulations

ARV
Sales 👎11% yoy to 339 cr

Expanding capacity in Unit 4

Other Generic APIs
DM, CVS ,Asthma
👍8% yoy ,👎20% in H1
Significant upside by Fy22 end

CDMO syn
34% yoy growth at 154 cr
H1 sales 👍60% yoy
Commercialized LSPL Unit 1 at Vizag for CDMO
Dedicated R&D at Genome ,Hyderabad by fy23 end ,Commercialization fy24 for steroids,hormones

Laurus Bio
Sales 24cr in Q2
40 crs in H1
👍80% QoQ, New fermentation capacity started
Total capacity 90KL
2 more fermenters to start by Dec22
For CDMO for food proteins

Expansion at R1 for new R&D block

Acq land for recombinant food protein business

#lauruslabs
#Q2updates🐝

Total Rev Q2 1203 vs 1138cr yoy, 👍6%

Gross margin 56%

Ebidta 348cr, margin 29%
H1 748cr

Eps 3.8
H1 8.4

ROCE 29%

Capex 242 cr in Q2
518 cr in H1
Backward integration in making intermediates for further API & FDF capacity

50% RM sourced fron China
Intermediates made in house

ARV sales to pick up in H2 ,especially in Q4

Gross margin to sustain result of more sales from FDF & Synthesis

Concern - volatility solvent prices

Dip in ARV sales
Shift 30 to 90 day dispensing regime
Shift from Efavirenz based regime

Out of 526 cr, 36% API Rev from NonARV

Formulations 4bn tablet capacity by fy22 end
To contribute Rev from early fy23

Formulations capacity majorly for EU partner
On site inspection by regulators in Q1fy23

Full productivity of Synthesis business in fy25
Capex 450 cr

CDMO combination of high potent & high vol mols

Solvent cost in RM in single digits 5 to 10%
Significant rise in Solcent cost rose in last week ,up 10 to 50%

Laurus Bio Sales H2 >H1

LSPL Unit 1 facility had virtual inspection by USFDA in Q2
No inspection expected

Fy24 CDMO to ramp up after new sites come onstream

FDF
FY22 launch 1 in US ,2 in Canada
Fy23 to launch 5 in US ,2 in EU

DM ,CVS Formulations mfg mainly contract based ,limited price erosion

Debt to rise in fy22, fy23 debt to decrease

#lauruslabs
#Q2updates🐝

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