Hypera S.A. (HYPE3) Earnings Call Transcript & Summary

Good afternoon, everyone. Welcome to the Hype Day. I'd like to start off by saying that it's a great pleasure to be able to talk about Hypera Pharma, this giant in the Brazilian pharma industry that is getting ready for the future. In our event today, we're going to learn more about the challenges and opportunities for sustainable growth of Hypera Pharma. We're going to talk a lot about technology, about digital, about innovation, about new avenues for growth and about sustainability. So let me introduce who will be with us here today. Let me show you on the screen. We have Breno Oliveira, he's our CEO. He'll talk about who Hypera is, strengths and recent performance. Adalmario Couto, the CFO and the Head of Innovation. Adalmario will talk about the pipeline of new products. Vivian, our woman representative here, is the Head of Strategic Projects, and will talk a lot about the Hypera Hub and Hypera Ventures. And Luiz Clavis, the Vice President of Marketing & Sales, will talk about Generics and the digital transformation. To make this an even better conversation, we can count on your participation. So use your phone. You can see the QR code on the screen. Scan that and submit your question or use the tab on the screen. So we really would like you to participate. All the questions will be answered at the end of the event. I'd like to reiterate that this is fully online and that everyone in the studio is following the social distance recommended by the WHO and all the protocols. Everybody has taken a COVID test before working, and we're ready to have a great afternoon. So this company is the leader in the preference of all Brazilians with renowned brands that are already part of your day to day in the last decades. In addition, Hypera has a strong ability to invest in innovation and production, with robust distribution that taking its products to 96%, I said 96%, of households in Brazil. And it's the only pharma industry with a relevant position, a relevant share in all market segments. Hypera Pharma is the absolute leader in nonprescription drugs and the owner of many brands such as Mantecorp Skincare and Neo Química that have -- that highlight in RX and over-the-counter in Generics and Dermocosmetics. In last year, the company has beat all records even though it was a challenging year given the COVID-19 pandemic. The records show the resilience of the Brazilian pharma industry and reiterates the importance of the Hypera Pharma strength to have a sustainable growth. The company beat records in investment in research and development in 2020, BRL 350 million. You can see right behind me. So Hypera Pharma had record operating cash generation and highest net revenue since it started [ focusing ] its operations exclusively in the Brazilian pharma industry. Hypera also maintained its commitment in shareholder compensation, achieving record dividend payouts in 2020. And more, the company has expedited its investments in technology, concluding transformational acquisitions that made the company pursue leadership in the Brazilian pharma industry. Hypera Pharma is looking at the future with responsibility, investing strongly in its strength, and still remains firm in its mission in offering quality health care for Brazilians so they can live more and better. I'd like to invite Breno Oliveira, the CEO of Hypera Pharma, who will talk about the future of the company. Breno, the floor is yours.

Good afternoon, [ Caio ]. Good afternoon, everyone. Welcome to Hype Day 2021. I hope that everybody is well and healthy in such difficult times that we're going through here in the country. Today, I'm going to talk about recent Hypera performance, the strength of the Brazilian pharma industry, the competitive advantages of Hypera and all the fronts that we are working on that will take us to the sustainable growth of Hypera in the medium and long term. Since the beginning of 2019, when we changed our strategies and started to focus 100% on sell-out, we had good growth, growing sell-out above 10% in a consistent manner when we were strongly affected by the pandemic. As we've mentioned before, the impact was mainly in the flu market, acute medicines and sunscreen that were strongly affected in the second quarter of 2020. The good news is that these markets are gradually recovering in other markets that benefited, such as prevention markets. Especially, multivitamins and vitamin D maintained this good performance and were growing more than the previous moments and above the market in the 4Q '20, close to 15%. That's the growth level that we expect for Hypera in 2021, even considering this current scenario. Although we have the uncertainties in the short-term scenario, the Brazilian pharma industry continues to be very resilient and Hypera has invested a lot in the past years to create the foundations for its medium- and long-term growth. We have a nonreplicable portfolio of brands and products. We have a unique innovation platform with the state-of-the-art innovation center and the best structure of business development for the Brazilian pharma industry. We have marketing and plant facilities to support the growth expected for the company in the upcoming years. We went through a process of an expedited rhythm in populational aging in Brazil, and they will grow regardless of the growth levels, leading to a growing demand in drugs as the elderly consume 4x more medicine than the young population. And this trend is proven by the past performance of the pharma industry that consistently grows above the GDP in times of recession or even in times of growth. The pharma industry is very relevant, accounting for almost 50% of the market in Latin America, and it's the second market that grows the most in the world, with expected growth of more than 10% growing more than emerging markets and developed countries. We have a nonreplicable portfolio of brands and products. We are present in all market segments in the Brazilian pharma industry. RX, OTC, Dermocosmetics, Generics and similar drugs, providing a huge scale for the company and a portfolio that has been very important during the pandemic. Each one of these segments have a different dynamic and we're not excessively exposed in any of them. With the recent acquisitions and the divestments that were necessary to approve these acquisitions, we went from the fourth to the second position. With an expected growth for this year, we will pursue the leadership in the Brazilian pharma industry. We've consolidated our leadership in the OTC market, achieving 20% of market share. We're the vice leader in the Similars and Generics market, and we're the third in RX. We currently have 18 power brands that account for over BRL 100 million in the year, 11 being the leaders in their categories, accounting for almost 50% of the company's net revenues. Adalmario will go into further detail about our growth potential line extensions with this and other company brands. In relation to innovation, 5 years ago, we created Hynova, our innovation center that focuses on product development to fill in the white spaces, the areas that already exist in Brazil and we don't operate in yet and incremental innovation, be it new drugs or molecules that will offer differentials for patients and physicians. And since 2012, we're the founding partners of Bionovis, with a share of 25% in a joint venture between 4 pharma companies in Brazil, focused on the biosimilars market, which is looking for, in addition to transferring the technology in the biologics market, develop its own biosimilar products for the Brazilian market and the global market. We will hear some words from Odnir, who is the Bionovis CEO and he'll address the novelties of the company. Our growing investments in R&D, achieving almost 9% of revenues already show results in 2020. In 2020, 33% of revenues came from products that were launched in the past 5 years. In 2016, that number was 24%. We know that the growth of the pharma industry comes from launches of new product. We currently have the largest drug plant in Latin America that can produce 18 billion pills. We will achieve 900 million units in vitamins and over 300 million in liquids and semisolids. From 2019 to 2021, we would have invested over BRL 1.2 billion in CapEx and we've already reaped the results of these investments in the increase -- production increase that will increase 44% from 2019 to 2021. Now I'm going to show you the video of our recent expansion in the creams and oils area that's been in operation since the beginning of the year. [Presentation]

Every time I go to Anápolis, I'm just impressed with the size and the grandness of our plant. I know that some of you have been there, but I would like to invite you again to visit the plant. After the situation is over, come visit us and see for yourselves all the grandness that we have there. In addition to the expansion of -- the solitary expansion that we've just shown, we've concluded the expansion of our VMS plant, vitamins, minerals and supplements. And the main projects now are building a new sterile plant and the expansion of our distribution center. In addition to the operations capacity, we have the most efficient medical calls team. We have approximately 1,000 reps in the field with a productivity that was double than the market average in the period after the pandemic. We are still adopting virtual tools in a hybrid medical call model, where 20% of the calls are being made remotely, more than double than the average in the Brazilian market. Luiz will go into further detail about what we're doing in that front in his presentation. In the past years, we've also invested, increasing our direct coverage points of sales. So now we achieved almost 80% of Brazilian drug stores, the biggest coverage in the market. With that, we have a direct relationship with most of our customers, understanding their needs and ensuring us that we have the best execution possible in those POSs. In media, we're pursuing more efficiency of our investments and following market trends. Currently in Brazil and in the U.S., over 60% of entertainment time is spent on digital media. We've been investing more and more in digital media, going from 9% to 30% of the total of investment in media, which is spent in digital. With that, we were able to achieve our target audience in a more efficient manner and do campaigns for small brands that don't have scale to be shown in traditional media alone. Last year, we had the name rights for the Neo Química arena. We've had good return, much higher than we expected. Over 17 hours of brand exposure on TV, not to mention spontaneous media in newspapers and magazines. We contracted [ the bop.com ], and the result was an exposure of approximately BRL 50 million from September to December of 2020, 10x more than the amount invested in the period. But we have more expectations with that initiative than just the exposure of our brands. We see this as a big opportunity to tighten our relationships with our main stakeholders. Our purpose is to create loyalty of the 30 million Corinthians fan supporters that already know Neo Química and have a close relationship with the brand, starting off with HCPs, physicians, clerks and all consumers and patients in general. We want to learn more about the habits of the Corinthians team supporters, look into their habits, exploring opportunities for promotions and initially focusing on selling the Neo Química product. I've said a lot about Hypera's strength. Now I'm going to call in Edison Tamascia, the founder of [indiscernible] Febrafar, the largest network of associations, to give his testimonial about Hypera. [Presentation]

Now talking about the growth drivers for Hypera for the next years. The main one is undoubtedly our pipeline of innovation. In addition to 250 products that we launched in the past 3 years, that still didn't achieve their potential sales, we have 350 projects in our pipeline with the potential to double the size of Hypera in the next 5 to 10 years. And Adalmario will give us more details of the pipeline in his presentation. Another important growth front is M&A. Acquisitions are part of Hypera's DNA, and we have great expertise in integrating the companies we acquire. I already see the results of the acquisitions conducted last year. The Dermocosmetics portfolio acquired by Glenmark in April last year already shows a 25% growth in 4Q '20. And Buscopan, which was concluded in September, also grew 14% in the fourth quarter, much above the pace it was growing at before. Those figures show the capacity of generating synergies, not only for costs and taxes, but also sales for acquisitions that Hypera does. We're very confident with the initial results of Takeda and also with Simple Organic, a start-up of organic dermocosmetics that we bought through our program of corporate venture capital, which Vivian will detail later. Our focus in this very short term is deleverage and integrate Takeda's portfolio. But we also see other opportunities for acquiring brand portfolios of multinational companies that concentrate their operations in their core businesses and divest OTC and primary care, and Hypera is the company that is best positioned to capture these opportunities. Another front of growth for Hypera is the institutional market. We've never operated in that market, but it's very relevant and is growing fast. It represents 40% of the total pharma market and shows growth rates of 15% with more and more participation of the private sector. An increase of the capacity in our plant for solids and steriles and the strategic products of this channel that will be detailed later. We want this channel to represent about 7% of our sales in the next 3 to 5 years. Lastly and not less important, a great avenue of growth is the digital channel. Vivian and Luiz will detail later, but I would like to highlight our continuous investments in digital media, a hybrid medical promotion model that brings high productivity for the team and is then the new reality in our relationship with physicians. Also, investments in e-commerce. This channel still accounts for 2% to 3% of sales. But it must show a fast growth as this share grows. And here, we're working on 2 fronts: first investing in omnichannel platforms of our customers. We created a trade marketing team dedicated for this channel. And also our own B2C platform that already had more than 15,000 orders since it was launched in April last year. Another very promising front is our omnichannel B2B for sales and relationship with the independent retail. Today, we cater to about 80% of the pharmacies, but we can reach the other 20% in a very profitable and easy manner using technology. And lastly, Hypera Hub and Hypera Ventures that works with start-ups to make the company more effective. And Hypera Ventures for investments in start-ups that work in the health care and wellness. In addition to investments in innovation, production capacity, go-to-market strategies and digital, Hypera has been investing greatly in corporate governance and the wellness of our employees and the communities that we are in. We reiterated our ethics and compliance program with a 100% independent structure that reports to me and to the auditing committee. We -- the top management is fully engaged. We structured a corporate risk management team that checks the company's operational and -- risks, and we create the policies and procedures according to the best practices in the market with a code of ethics, donation policy, relationship with the authorities and others. We communicate and train our leadership, our employees and suppliers. Our motto is do the right thing, always goes well. Hypera is also very active in social actions and initiatives that help our employees and the community we are in. In 2020, we donated more than 480,000 medicines. We also worked with Horas da Vida, which provides medical consultation for low-income people. Also, Hypera's volunteering program impacted 17,000 people, partnering with 25 NGOs and other benefited health institutions. About COVID-19, we did everything we could to preserve the lives of our employees. We tested 100% of our employees. We implemented a procedure to test and give leave to those that are affected. We established telemedicine services for all our employees and we had more than 30,000 online appointments during this period. We also concentrated our donation in the state of Goiás and the city of Anápolis. We donated to local NGOs. We donated ventilators, PCR tests and intensive care unit beds to help the cities when they needed it the most. It was a total of BRL 30,000 to help with the well-being of our stakeholders and employees. We also have several programs focusing on the environment in several fronts, like reuse of water, environmental biodiversity, control of waste, recycling and others. The company also has a program to educate our employees and stakeholders about wellness, sustainable life and importance of initiatives to preserve the environment, like Plantar and [ Fale Verde ]. For the past years, our programs brought relevant results and we used -- reused 18 1,000 liters of water. We reduced our solid waste by 44% produced in 2020. We also have 2 large projects to increase even more the reuse of water in our operations and reduce emissions of CO2. We invested in new technology to increase the reuse by 2.5x by the end of 2021. And we're also building a new energy substation with investments of BRL 25 million that will eliminate the need of using generators and consequently is emitting CO2 in about 10% by the end of 2020. In March, we announced a project to recover the Araguaia River, the main river in the state of Goiás, and very important for the Midwest of Brazil. This is the largest recovery projects in the world, reforesting 10,000 hectares. We're very proud to be helping the state of Goiás in this very important project. It's also important to mention that Hypera has many -- a lot of diversity. For the past year, especially during the pandemic, that's the result of the work of the leadership team and all our employees. I would like to thank the work and effort and dedication of our 9,000 employees that made Hypera reached the point where it is. Innovation and creativity are encouraged in an environment that values diversity. And here at Hypera, this was a natural thing. The data we're showing today reflect that. 50% of our employees and 35% of our executive officers and then 22% of our Board of Directors are women, a very -- a number that is much higher than the average of Brazil, emerging markets and health care. We didn't establish a target for the company, but these numbers reflect well how the company sees the importance of diversity. Summarizing, my key messages for today were: recent performance of Hypera shows strong recovery. Although we do face challenging scenario of the pandemic, we still believe in the pharmaceutical market opportunities for the mid- and long term. We have relevant competitive advantages compared to our main competitors. We are still investing in new growth drivers for the company. And we seek sustainable growth, considering the well-being of our employees and the communities we have relationships with. I would like to thank your attention, and I'll come back at the end. Now I would like to call [ Caio ], and I'll see you later.

Wow, Breno, how many great things. Hypera is investing where they need to grow in a sustainable manner and such a resilient market. As a pharma company, Hypera has to look at the well-being of their stakeholders and contribute to a more sustainable world. Great, Breno. And those who are watching, do you have any questions? Send them to us. Just point your phone to the QR code or send the -- your question. They will be answered at the end of our meeting. And as Breno said, investing in the product portfolios is necessary for sustainable growth, and that's exactly what the company did in 2020. Even with the challenges that they faced because of the pandemic, last year, more than BRL 350 million were invested in P&D and innovations. Also Hypera recently concluded the acquisition of several brands of Takeda and Glenmark. And also Buscopan, the second largest OTC brand in Brazil. The pipeline of innovation of Hypera is still very robust, with many launchings to care for the health of Brazilians, like vitamins, Prescription drugs, Generics, Dermocosmetics. Guys, innovation is part of Hypera's DNA, as you can see. And to speak more about that, I would like to invite Adalmario, our CFO and Head of Innovation and New Businesses to give an overview of everything that Hypera is doing. Adalmario, you have the floor.

Good afternoon. Good afternoon, everyone. Everyone who is with us at our Hype Day, we want to share with you what we are doing with our pipeline for new products and show in detail why we believe that innovate is essential for Hypera's business. For us, innovating is not just having ideas of new products, but also developing the culture of innovation in the company overall, with people who have the skills of creating, launching, escalate new products in an agile and assertive manner. Innovation is the key pillar of our growth strategy for the mid and long term. But even more important are the results that innovation brings in the short term. So I'm going to start my presentation, speaking of the results that we achieved for the past 3 years since Hypera became a 100% focused in the pharma industry, and the positive correlation between launchings and the company's financial performance. During this time, we did more than 250 launchings in the past 3 years, concentrated on extending our lines of the key brands that we have in our portfolio like Benegrip and Maracugina. We also were able to create brands and enter new categories launching Lune, Aipri, Rizi, Artroflan and Artrotop. We increased the coverage in the generics market, including new relevant molecules. In vitamins and supplements, it's the category that we have the highest innovation rate in the company with -- accounting for more than 60% of their revenues coming from products recently launched. And we also launched unique ingredients like Vitasay Vitaly, the success of MSN with our collagen Colfex brand and recently, Colflex muscle with [ HME ] ingredient. The dermatology products pulled our company upwards, with more than 60% of the products launched in the past years, and increase in our portfolio of Episol, epi [indiscernible] launching vitamin C nano capsules with great relevance in nano drugs. In addition to launching new products that help the organic growth, we also have M&A as an important part of our innovation strategy. M&A is at Hypera's DNA. In addition to the synergies, they speed up the launching with the purchase of icon brands that are synonym for the category and very difficult to replicate like Buscopan and Neosaldina. It also allows us to go into very appealing segments that grow above market, like diabetes and derma drugs. These 2 strategies together have the potential to turn Hypera into the leader in the Brazilian pharma market. Now I would like to show you a video that shows the power of Hypera at the drug stores after these launching. [Presentation]

Incredible, isn't it? You can see the number of power brands, not to mention the one that's are about to become power brands with revenues close to [ BRL 100 million ]. Now looking at all these launches, what were their impact to the company's earnings and growth? Just to understand the order of magnitude, last year, the company's growth was 24%. Half of that growth came from products launched in the past 5 years. Even though they account for 1/3 of the revenues, we were able to achieve one of the highest levels of innovation in the industry, close to the goal that we posted at the end of 2017 of having close to a rate of 25%. From then until today, we've expedited the launch of new products. And in this 3-year period, the launches account for 25% of the company's revenues. With that, it's very clear why innovation is so important to Hypera. Now I'll go into further detail about the innovation process at Hypera and what we have in the current pipeline. Everything starts off with the most important asset that we have in the company, our human resources people. Innovation doesn't happen without their participation. We had the privilege of counting on the best teams of multidisciplinary professionals with the mission of bringing in innovation to improve Brazilians' health. We have a team of over 20 people, focused on strategy and building the ideal portfolio for Hypera in the next 5 to 10 years. That is the time horizon that we are working on, focused on identifying the possibilities, opportunities that will bring us the biggest return for the pipeline in the medium and long term. In addition, we have a technical committee comprised of P&D, medical, regulatory, plant and procurement, analyzing the feasibility of each project. We see if we have the know-how necessary and the ability to develop in-house or externally, through acquisitions or even joint ventures, to join forces with other companies that can add on knowledge as we did with Bionovis. The strategy and innovation teams analyze the market with different databases, surveys with physicians, patients and consumers. And with that, trying to identify the main trends that should impact the health care industry. Here we have some of them that act as the foundation to build our pipeline. The most important is having consumers and patients at the core of decision-making. Today, we live in the era of empowerment and engagement, and consumers demand more transparency, convenience and access to customers' products, which is even more relevant today in understanding that complete journey and all the different consumers that we have, that's the main challenge with this. This consumer that's more informed and connected and have much more access to specialists than before. And without leaving their home, by using telemedicine for consultations, with access to electronic prescriptions and buying on e-commerce platforms of the drugstores. That consumer that's engaged and digital, also focuses more on prevention and wellness than treatments. They want to improve their immunity so they don't have to be -- have sick days, and that's why they are more concerned about their diet. With a balanced diet and increasing the demand for vitamins and supplements. And that should continue to be a trend even after the pandemic. These consumers are also concerned with the source of products and where each ingredient is coming from, preferring natural plant ingredients and free from conservatives and if possible, organic, as well. The other important aspect is that these consumers are living longer. The average expectancy is 76 years in Brazil and is going up year after year, which is excellent. However, the improvement of physical health happens with -- together with the worsening of mental health, which is related to change in lifestyle habits, the increase in neurological diseases, such as Alzheimer's, Parkinson's, depression, anxiety and insomnia. Those should be the main causes of diseases in the future, along with diabetes, obesity and hypertension. We have our eyes open for the trend and are looking to have a pipeline that will address these systems to help people live longer and better with quality of life. Now about the numbers of our pipeline. Even through -- in the challenging year of the pandemic, we launched almost 90 products last year, in addition to [ which grew ] 47 new projects. With that, we've ended the year with 350 projects in the pipeline that will have the potential to double the company's size. Another important indicator that we had in the pipeline is the level of innovation in these projects. In this innovation matrix, you can see that better. In the horizontal axis, we have the level of innovation per product. And in the vertical axis, we show where we can innovate. So in the traditional innovation model, suggests the division of 70, 20, 10 in products close to the core business, adjacent and disruptive or transformational. In our case, almost half of the pipeline is closer to the core business and the other half in adjacent and disruptive project. When we compare that to other pharma -- global pharma industries or biotech companies, the disruptive option is higher. But compared to local companies, the pipeline is mainly focused on projects that are close to their core business. The ones that are closer to our core are projects that increase our coverage in Generics and patented molecules, where we have an opportunity of being one of the first to launch after the patent period is over. In adjacent, we have [ the better ] products, which are line extensions, new brands that set us aside -- or set us apart from the competition, such as a pain killer with a double potency or in a stick format, on-the-go format, that provides additional convenience for consumers. The rest of the world are concept molecules and categories that don't exist in Brazil. However, they are present in other countries. Here we have less projects. However, they are innovative, with a huge potential for the Brazilian market. With this type of pipeline profile, it's very clear that our commitment in bringing in more innovation and changing the status quo of the Brazilian pharma industry, maintaining a balance, focused on attacking the opportunities, that are close to our current business, that we can launch in the short term as well as setting yourselves apart by anticipating the trends that we're seeing in other countries. Now I'll show you the division of the pipeline into product categories. We're still focusing on expanding our brand portfolio, which accounts for almost 80% of the pipeline, and increasing the relevance of Generics that currently account for less than 15% of our revenue. We have a specific strategy for each one of these categories. First, about Rx that are promoted by physicians in our Rx business line. The main strategy is to increase our share in chronic treatments and bring in more exclusive treatments for the physicians. Although the current portfolio is more relevant in acute treatment, when we see the [ class ] pipeline, we have a higher share in chronic therapies such as CNS, cardiovascular and women's health. Here, I have 2 examples to show you exclusive treatments that we have with a high level of differentiation that we're offering physicians. The first one is the extension of the Alektos brand, which was recently acquired. The molecule has an exclusive patent up to 2027. It's a second-generation antihistaminic, an oral solution indicated for treating allergies in children 6 years and above, which was already being developed when we acquired the Takeda portfolio. The second one is our new brand Amome, the first nasal spray promoted to physicians after the reference product of Nasonex. With the strength of our medical promotion team in these specialties, we were able to gain great market share. When we look at the 5 main Rx products in the pipeline, they have a contribution of BRL 500 million to the pipeline, with the diversity of treatment that go through insomnia, nausea, ADHD, gynecology and cardiovascular. When we go into OTC and OTX, the strategy is brand extensions of the leading brands and also that in new categories in Brazil. The first example that I have is the Blumel line, which is the first specialist brand in treating children flus and colds, with the complete solution, efficacy and natural ingredients without sugar or preservative. Here, we were inspired by Zarbee's abroad. We were a pioneer to launch the probiotic LGG in capsules and sticks through a partnership with Chr. Hansen. This is the strain that's most recognized around the world in most clinical trials to relieve diarrhea, improve bowel flora and improve immunity. We're confident that we'll be the leader in this probiotics category, and LGG will be our [ project ]. The launches in this category are BRL 370 million, are mainly focused in pain. Why don't we move to the generics portfolio? The main strategy is to increase the coverage of molecules to be the first to launch product after the patent ends. So we identified the molecule that will lose exclusivity, and they're already in development in our pipeline. We estimate that we will obtain 15% to 20% of share for these molecules. Here are some of the recent launches with the highlight to sublingual or zolpidem. And we have 17 more launches this year, and we'll increase our launch for the market to above 55%. The top 5 products from the pipeline will contribute with BRL 185 million in revenues after the launch. In the category of vitamins and supplements, we continue to invest to differentiate expand the brand portfolio with new ingredients and pharmaceutical formulas that will offer benefits to consumers. This is our recent vitamin brand, Neo Química, with a full offering for consumers, with the highlights to the effervescent formula of vitamin C plus zinc to increase immunity. Another example is the Addera OTX line with a wide range of products and formulations always associated to vitamin C, with the highlights of the first vitamin D in format of [ take ]. These projects contribute with BRL 150 million increment to our pipeline. But in this category, it's more dynamic and enables us to speed up the investments in the short term. In dermatology, we have the strategy of differentiation and positioning skin care line with unique formulations, betting on natural products and expanding our offer of dermal medicine. Now I'd like to share an institutional video of Mantecorp Skincare. [Presentation]

The top 5 products that we have in the dermal pipeline total BRL 120 million in contribution and reinforced the portfolio of sunscreen, hair and rejuvenation and aging. So lastly, we have the injectables pipeline that will increment the institutional channel, which is being developed in collaboration with some strategic partners, mainly focused on antibiotics and hormones. We already have 28 molecules in our pipeline, with the potential of generating BRL 330 million in sales. I'll let Luiz talk about that in his presentation. In the institutional market, we also have the participation of Bionovis. They're our biotechnology arm that already count on revenues close to BRL 1 billion, almost doubling in size year-over-year. To talk about Bionovis, we have Odnir Finotti, the person behind Bionovis. Let's check out his video. [Presentation]

I would like to thank for the opportunity to share the innovation initiatives, and the scale of Hypera depends on our ability to continue to innovate. And our mission is very clear. We have to continue with this path towards success. We believe that there is much to do, and we're only at the beginning. And now I would like to pass the floor to [ Caio ], and later, I'll come back in the Q&A session. Thank you very much.

With so many incredible launchings and robust investments in innovation, you're going to rock, Adalmario, but it's not just innovation that Hypera is investing in. As Breno mentioned, Hypera is advancing in several topics related to digital transformation. The company now has a robust platform for remote medical appointments that gain visibility during the pandemic and increase the number of medical appointments. Hypera launched its platform in 2020 to sell directly to the end consumer and created an exclusive trademark in -- digital trademark in [ '18 ]. Hypera also intensified their investments in generics, Neo Química, with the name right of Corinthians Arena, now called Neo Química Arena. And speaking of generics, Hypera is looking very carefully at a company, and it must be a new growth driver for the company. To talk more about that, I would like to call Luiz Clavis, marketing Vice President and Sales, that is spearheading these initiatives at Hypera. You have the floor.

Thank you, [ Caio ]. Thank you for talking about the drivers. We have many important drivers for growth, and we're going to talk about that next. Good afternoon, everyone. It's a pleasure to be here with you and talk about very interesting things that Hypera is doing for the past years to create new growth drivers for the whole organization. And speaking of that, we go back to the consumer. The consumer is our center of attention, be it a shopper when they go to the store or patient when they go to the physician. They're evolving through the years, and they were highly influenced by the way they received information. It was very simple. In the past, it was on TV or print media. And with the evolution of the Internet, with Google, with smartphones, this consumer now receives information from all over. And their behavior changed throughout the years, changed very relevantly. And we obviously had to understand how the consumer behavior changed, and we have to open new pathways considering this consumer. And this new consumer, as you can see here, is the center of our attention. They started to behave differently, as I mentioned, and we had to open new pathways and look for new alternatives to reach this consumer in appealing and effective and interesting manner. And these new drivers, these new pathways that [ Caio ] mentioned is what I'm going to talk about. We brought them to the business recently, and they're very promising for the future. The first one are the new connections, the digital consumer, multi-faced consumer, as we'd like to say. This consumer has changed. And if they changed, I have to change the way we do business and how to reach them. So we basically had 90% of our investments in offline media, especially TV, in the past. In 2021, we're going to have 35% of our investments in digital media. But it's not just changing investment to digital media, just putting money there. You have to prepare for that. And how do you do that? The first step is to work content so that the consumer that interacts with our brand has relevant content for them to read so that to attract, retain and engage and convert into results. We work on 5 blocks, the vitamins and supplements, dermocosmetics, anti-flu medicine, prevention and GI, so that you can increase the number of interactions with our brands, the intention to buy and interest. We left from less than 2 million to 2.5 million of interactions with our brands, evolving and delivering high-quality content for the consumer to feel attracted and have important relevant information from our brands. And that's not all. We need content, but we also have to talk to this consumer in a dynamic manner, and that comes from social media. And with 2 brands that we had on social media, we have 20 now. We created social media management department inside our agency, and they're working with these 20 brands that I mentioned, and they retrofit the system. And we basically created a digital creation hub with social media and with information that comes through the content that is generated. And then you can reach these results that you can see on the screen. So 400 content published, growth in audience, in views, in interactions so that you can generate results. And I would like to show a first video that shows all this that we did to give you an idea of what is going on, okay? [Presentation]

With all that, that you've seen, with all those changes and being prepared to actually talk to the consumer and be relevant in digital, we've seen a change in business, 36% increase of investment that we did in the fourth quarter of 2020. We were able to achieve 17% increase in the demand on the brands that had digital investment with 70% return. It's what I have a demand compared to what I invested. The scenario is promising, and the more -- the better we can be in this scenario, the better the results for the company. Now going back to the consumer. The drivers are still coming forth. Very important one that complements digital media is e-commerce, online consumption of our products, which had a very relevant growth in 2020. With the pandemic, a lot of people had to stay at home. Many stores had to reinvent themselves and work online. The truck stores are still open, but e-commerce gained relevance because consumers were at home. In 2020, it was 2% of the business. It was 1.5%. It was an impressive growth. And we have to adapt, creating our own platform, which is called [ e-Hypera ] that was launched in April, May and creating a department to manage e-commerce with our partners. We call E-Trade or iHypera is derma and vitamins and supplements and now will be added to the other products. And E-Trade, the same person who sells to retail is the same person that has to know what we did in e-commerce, which didn't happen the best way. And since the beginning of the year, we have a dedicated team that thinks full time on everything we do with the customers' e-commerce. So this -- these 2 pillars we try to engage consumers to our brands. And we were able to basically develop Hypera. We had 2.5 million people that went to our institutional e-commerce. We also partnered with marketplaces. We worked with more than 10 of them. We have a partnership with large companies in which we supply our products as a benefit for the company to offer their employees. We worked, investing in media for conversion to our brands and on our own website. We created a database for the consumer. So we prepared this ecosystem to be able to generate conversion at the end. And along with that, with our clients, we have a dedicated structure, pure players, which are companies that we didn't work with before that are fully e-commerce, like Época Cosméticos or Beleza na Web, Farmadelivery that works with drugs. They're a digital marketing company. So we made this partnership, and we were able to grow 80% with our E-Trade BRL 72 million sellout, which is basically what we didn't capture before. So it's very relevant. And this combination of doing ourselves and also boost the business of our partners and retrofit the ecosystem with the marketplace. And social media creates a very interesting environment with a lot of potential for our business. And today, we're the fourth player among the pharmaceutical company. We worked last year strongly with dermocosmetics. We've been increasing vitamins' shares, so we expect to become the second player this year. And by 2023, we want to be the first player in the market. Worked with not only dermocosmetics, but also vitamins, supplements, prevention and chronic use drugs with continuous replacement. So if you use a drug continuously, you can schedule that replenishing through e-commerce. So we're doing everything we can to be the leader in this market as we are in retail. So little by little, we create these drivers, these pathways. It's still an ongoing project but it's very promising. And we still have another moment of consumption that Hypera wasn't capturing so much. And what is that? It's already established, but Hypera wasn't into it. It's the institutional channel. We're talking about hospitals, clinics, HMOs. So you feed that institutional market that can be either private sector or public sector. The public sector with the government, our bids for large contracts. You have a relevant number of lives of patients that are being cared for, but it's more basic care. It's more essential care for survival. But the largest market is the private market of large positions with specialized treatment with a very large number of lives, and it's the market that is growing the most. Hypera today is basically public sector. We enter bids. It's 70%, the public sector. It's 1/3 of the pharma company. It's already big. It's growing very interestingly. And we should participate in that. So that's another driver of growth that we created in the past year. So we did 2 initiatives. One, portfolio. But to be in this institutional market, you need to understand what the market needs, what you have to offer. So injectable that goes towards what we have in the new plant that will be ready by 2023, injectables and chronic use diseases very specifically, so respiratory products, cardiovascular disease, central nervous system. So we map 28 molecules that are being used in this market in the injectable forms, and they will be plugged in our portfolio through the next 5 years through partnerships of existing molecules, new businesses of molecules that are not here yet and products that we are going to develop ourselves. So that will increase our portfolio with 28 new molecules in 5 years. Along with that, you need a structure. So we created a structure that catered to the public sector, which will now cater to the private segment. It needs not only distribution, but it also needs to register our products, especially in their hospitals. So you have to have a standardization. And another team will sell to the public sector but also coordinate the bidding process. So the combination of portfolio and structure brought us to a new scenario in institutional sales. And it's 1.7% of Hypera's revenues, but it will grow 35% in the next 5 years. Well, we expect to account for 5% to 7% of Hypera. It's relatively small, with investment in technology and structure to operate. And we hope to account for 5% to 7%, with relevant growth compared to what we want to deliver in retail. So it's a very good drive for growth that we just built. Now going back to digitalization. We can also talk about medicine has-been behavior. We're calling it digitalization of medicine. We took the first step. And to show that, I'll go back to what happened in 2020. We started the year basically in the analog model, visiting the physicians face-to-face. We had a very small project of virtual visits. And when March, April and May, when the pandemic hit last year, not that it wasn't -- it isn't concerning that now, but last year, everything stopped, and we had to bring our teams home to understand what we were going to do. We prepared very quickly. So when we gave vacation to the team in April, we rolled out the tool that we already used that's called Kadrige. It started to operate on our entire sales force and also the conferences, trade shows in a digital manner. So we migrated massively to the digital world. We did that between April and May, and as of the third Q last year, we operated in a hybrid model. So went back to visiting the physicians face-to-face and remotely and also putting all these other things to operate. Especially at the beginning of the third quarter, we increased productivity. We were able to visit more before the pandemic, and we were able to be leaders of digital visits. We're the company that does the most digital visits in the market. We believe in this market, and it brought great results at the end of the year. We increased the number of visits. We increased the number of physicians. We increased the numbers of prescriptions. So the result, as you can see, the chart on the bottom, there was a certain moment that we almost had to stop everything. We had almost 6 visits. The market almost went to 0. And as we were able to implement the tool and the hybrid model, we recovered. And at the end of the year, we were able to work with 15 visits per day in the market, better than the 13 we did before and better than the 7, which is the market average. So we evolved greatly, thanks to this model that we believed in. And we know that it's here to stay. Of those 15 visits, 3 are digital. So you have fewer face-to-face visit, but the total is higher because you do remote visits. And you have these results as you can see. We visit 160,000 physicians, which almost 40,000 more physicians; 15% more interactions; more prescriptions than this year, 6.6% in a year in which the prescription dropped. So this mix worked very well. And this brought us very good results in the last quarter and very promising at the beginning of the year. But the model doesn't stop there. It was basically analog, and it started being hybrid and to show an analog, but it's much more of an evolution. It's almost an omnichannel. And when the physician prescribes through telemedicine, with telemedicine, you -- how you convert it to the store, how you retrofit the information for the physician, how you talk about innovation. So you can do several alternatives. We believe in that. We've been working with that in the project that we're doing in-house to increase the number of contacts of interactions with physicians, with patients and retrofit the ecosystem in a very robust manner. So we believe that we're just starting, but the results are very promising as well. And based on all of that, you have all that experience, all the avenues that we're going to grow. And then what's another way of feeding back into all that chain in a very impacting manner? That's where we have the Neo Química Arena. We use the platform with our main brand, with our brand of generics and similars. It carries the most number of items, and it's our big brand. It has revenues of approximately BRL 2 billion in distribution in all drugstores in Brazil, a lot of growth because the similars and generics market is growing a lot and nothing better than bringing together a platform that talks about health, sports and wellness to consumers. So nothing better than the Neo Química Arena as the Corinthians team. They have a strong job in loyalty. So approximately -- and hence, the wellness of consumers. So since August, until the end of the year, in the past 4 months, September through December in quantified revenues according to average market value in spontaneous media, BRL 49 million. So spontaneous media that comes from many different places. The name of arena is being used in general by the media. And indigent to the media that we already do, it's very relevant. So to show a bit about all of that, that I just shown, I'd like to show you this video now. [Presentation]

Seen to crown all of that, we have the ambassador of Neo Química Arena, Marta, and she's on her path. She comes from a very humble family. She was able to show her talent, and her talent here results the entire world. She's a great person to endorse this platform, and it will be great to have her close to us across 2021. As I mentioned, the arena is the big platform, but it will feed back into our entire chain. Our chain has the access channels on the right with e-commerce, social media in many different portals and tools that interact with consumers, such as WhatsApp, about how you interact and engage. But above all, it has our stakeholders at the core. So here, we're talking about physician, consumer, sales team, fans and consumers, retailers. So at the end of the day, we want to use this entire ecosystem to feed back into this platform that relates to consumers who are end users, create this platform. A Neo Química Arena feeds back into that, the energy speed and gives it the dynamism, so that we have a great center of information to be able to interact with these consumers, generate interaction, content and conversion. That's what we want at the end of the day. And Neo Química Arena is boosting that process. As I mentioned, consumers are always at the core. And that makes these avenues structure. They're creating new ways to interact with consumers, new options, new tools, new channels, new processes, so that we can always create more interaction, generating content ahead of time so that we can continue to generate growth. But I can't forget to mention the points of sale because then you're going to think, well, you talked about digital, e-commerce, platform, the arena, hospitals, digitization of medicine, but what about the stores? Yes, of course, our business still happens at the point of sale. It's the main source of consumption of our products. I can't forget it, but it is part of that change. And that's another story. I'll let Vivian talk about that. She'll come back to this when she gives her presentation. So thank you. Excellent to be here with you in this period, and we'll be back later to answer the questions during the Q&A session. Thank you.

Clavis, that was great. So many avenues for growth. In taking health to the Brazilian population in a more relevant in the hospital market with a lot of investment in technology and using sports to promote such a strong brand like Neo Química isn't easy. So Hypera is investing a lot. Are we done yet? No, we still have a lot at Hype Day. If you have any questions, please send them. [Operator Instructions] The last Hype Day, Hypera already talked about its digital strategy and its importance to solve the short-term problems by using technology and by pursuing disruptive opportunities in the medium and long term. 2020 was a year to capture the first results and to consolidate the culture of innovation in the company by implementing unique projects in the Brazilian pharma industry. Now I'd like to invite Vivian Angiolucci,, the Executive Director of Strategic Projects to talk a little bit more about this to all of us.

Thank you, [ Caio ], for the introduction. Good afternoon, everyone. It's a pleasure to be here again and talk about our digital strategy. I'd like to start this afternoon, reminding you about what we talked about last year of our digital strategy, which is based on 3 major pillars. The first one aimed at leveraging technology to bring in efficiency and efficacy for our operations. The second is to place the customer at the core of our decision-making and expanding the markets where we're at. Third is to be -- play a star role in the disruption of the hospital market. In the last Hype Day, we launched our open innovation program, the Hypera Hub. It included 4.0 industry projects, HR 4.0 data analytics and new technologies. There were 10 challenges. And so those challenges, we had 203 start-ups registered, 40 of them were picked for the pitch day, 12 were approved to pilot their solutions. And at the end, 5 were contracted, with a significant impact for Hypera and its business partners. Now let's talk about some of them and their results. The first of them, Beegol, had the purpose of increasing Hypera's market share in small retailers by offering customized order suggestions. It was a success. We had an additional growth in point of sales that were exposed to this of over 5%, and the start-up is in the phase of rolling out its solution. The second start-up called Nucleo Vitro had the purpose of accelerating our research and development projects in skincare. They brought in artificial skin project. Before, to have access to that technology, we had to have access to international partners that affected time and cost. And lastly, we have Databot, with 2 main objectives, first of all, to bring in automation in our old system projects and artificial intelligence into the production system, improving the agility and decision-making. All of these start-ups are already hired, and they're rolling out their solutions. It's also important to mention that in addition to Hypera Hub, we became very active in our start-ups' ecosystem. We currently work with many of them to solve business problems in an agile and efficient manner. These initiatives go from artificial intelligence to process optimization as well as including partnerships and business models. Now I'd like to bring on a video about Hypera Hub to tell you about the first year of our open innovation program. [Presentation]

[ Max ] just said, we're launching Hypera Hub Phase 2, more challenges, more engagement with the ecosystem and more impact for Hypera and its business partners. The challenges are already on our website, and then the pains are related to data analytics, industry 4.0, sustainability and marketing and sales streamlining processes. Now let's go into our second pillar. Luiz mentioned before about some of the initiatives that place customers at the core of decision-making, such as e-commerce and multichannel relationship with physicians. Now let's focus on the Hypera partner platform, which is the new way to interact with retailers. Behind this project is the purpose of enabling small retailers to prosper and grow. And considering the social role for all of Brazil, we want to be present where and when retail wants us, with the customization of our offerings. So we want to increase our sales together with retail development. I mentioned that we want to offer customize to offer for customers. What does that mean? It means we need to understand what our customers want. And it's worth mentioning that this entire project was built based on the deep understanding of all these needs. To illustrate that, I'd like to share 2 profiles that we found when talking to small retailers. On one side, we have Fernando. Fernando, he owns a midsized point-of-sale. He is known for everything -- having everything that customers want. He likes to be close to the customers, and he also likes to be close with the industry representatives. He does not like virtual relationships. He does not like to buy online. He's very much concerned with quality and service level than price. On the other hand, we have Roberta. Roberta doesn't really want to talk. She wants efficiency. She likes to buy independently and remotely. She's very rational. And in purchasing, she shops around a lot before buying. So you can really see the difference between these 2 profiles. So right now, what are we doing? At what point are we in this platform? We started to test the e-commerce platform. Since the middle of last year, it's already online. And the objective is to improve user experience by meeting all their needs. And the next step, we want to deliver much more than a shopping platform. We want a more robust relationship platform, customizing offers and incentive program that should happen in the first half of the year. In the second half, we want to evolve that delivery to the marketplace, delivering more than products to our customers. By March, our e-commerce has already come on 8% of our active customer base, over BRL 10 million in revenues in a month. Active customers have already shown superior growth to the rest of our customer base. Let's take a look at our e-commerce now. [Presentation]

For companies that already have proven business models. But before they go into speeding up their growth, regardless of shareholder shares, we want to make them independent so we can level main assets in Hypera, such as R&D and so on. In 2020, we had over 100 companies that were evaluated, over 10 business partners that already -- we had already. And in fact, 1 investment made 3 term sheets that were signed in the due diligence process in addition to a robust pipeline for 2021. This is the rationale behind our first investment, simple organic. It's worth noting that the dermocosmetics market in itself is already big and resilient. The natural organic and vegan products market has been growing in an important manner outside the dermocosmetics market. On the other hand, Simple was already a leading brand in its segment with a robust profile with a large ability to innovate with the founder in -- with complementary abilities to ours. And to add, there are many synergies that can be captured, be it target audience, market or channels. So it's a huge pleasure that I'm going to hand over to Patricia Lima, the Founder of Simple Organic, who will say a few more words about this partnership. [Presentation]

Thank you, Patricia. It's a pleasure to have you with the Hypera team. To close my participation, I wanted to share our expectations for 2021. With Hypera Hub, our goal is to speed up results and generate new opportunities; with the multichannel, we want to increase the share and new revenue streams; and with Hypera Ventures, we want to speed our organic growth and have new strategic investments. I would like to thank you for your time. And I would like to pass the floor back to [ Caio ]. Good afternoon.

Great to hear you, Vivian. I was checking Simple Organic's website, and I found a whole bunch of interesting things. There's a great tip for you who are listening to us from home. Those who are watching Hype Day will get exclusive discounts to buy products at Simple Organic and Hypera. Isn't that great? So let's talk about that later during the Q&A. Now pay attention all the way to the end of the event. Hypera is the most prepared company to capture the several opportunities of the pharma market in Brazil and is investing heavily. This is more similar to my field. Hypera is like a soccer team that wins championship but doesn't sit on its hand. They strengthen their teams, be it at the goal, the defense, offense. Hypera is -- always plays a leading role and plays to win in the Brazilian pharma market, innovation, digital, new markets. What can we expect from this team in this year and the ones to come? To answer that question, Breno is here back with us. Breno, tell us about it. Where do you want to go? Where are you leading us?

Great, [ Caio ]. You heard in detail our strategy for innovation, our initiatives in digital, all the opportunities for growth that we have ahead of us. With all these initiatives, I would like to show you our strategic goals for the next 3 years. In terms of growth, with all these initiatives, we want to grow significantly above the market, leveraging our launchings in the next years, our innovation pipeline, new distribution channels and new opportunities of strategic acquisitions. In addition to growth, we want to improve -- increase the company's profitability. For the past years, for many years, due to the several issues, we're back in profitability levels, especially optimizing expenses and costs. We have room to recover the EBITDA levels of 30% to 35% that we had in the past. We also want to continue to generate cash strongly to invest in our business and all these opportunities for growth that we mentioned here and also focusing on reducing indebtedness in the short term and increasing the shareholders' profitability. We want to deliver better results for our shareholders and stakeholders. As we said in our last earnings call, these are our guidances for 2021, in line with our midterm objectives. Net revenue of about BRL 5.9 billion; adjusted EBITDA, excluding the lines of other expenses and revenues, of BRL 2 billion; and net income from continuing operations of BRL 1.55 billion. This is what I had to say. I would like to thank you all for being with us, and I hope we were able to convey all the opportunities that we see for Hypera in the next years. Now, [ Caio ], you can continue with our event.

Thank you, Breno. Now we are going to answer your questions as much as possible, all the answers that you sent from home. We're going to start our Q&A. We're going to have a short break, 3 minutes, for you to grab some coffee, stretch. And we'll come back with all our executives. Before that, before we start our Q&A, I would like to remind you that using the discount coupons with Hype Day 2021 code, you can buy products with 30% discount both at Simple Organic's website and at hypera.com.br. 3 minutes and we'll be back to answer all your questions. [Break]

So we're back. I think you all had time to grab some coffee, to stretch. And now let's go back to our Q&A, which is the last part. I would like to thank for your questions. We'll try to answer as many as possible so that we can have a great Hype Day. Speaking of that, our studio is set up, respecting all the safety protocols, we have divisions. All the executives, including myself, who will be part of the Q&A, were tested. And all the tests came back negative, so we all are in great health. Last reminder before we call everyone to the stage. Those who are watching us, use the coupon with the hashtag Hype Day 2021. With this coupon, you have 30% discount at Simple Organic and hypera.com.br. So in addition to this great interaction with you, and I hope you all are enjoying, use our coupon and you'll get 30% discount on those websites. I'm going to take my seat here and call our executives: Adalmario, who will sit to my left; Vivian, who will sit next to Adalmario; Breno, on my right side; and Clavis, to also conclude our panel. I'm going to read those questions so we can answer all the -- your questions. Could I start with you, Adalmario? The question is from Sergio Oba from Empiricus. He wants to know, can you update on the growth of the vitamin segment? Is it still speeding up?

Yes. It's very fast. We had a growth in 2020 that was very relevant, almost twofold in some categories. January and February, we saw not exactly the same growth that we had last year, but it's still with very high demand. For us, there are 2 main effects. Some vitamin categories have a higher demand, and one of them is the one that we're leaders, vitamin D. January and February had a growth of 80% for that specific segment, and the others are the launches that we have in other categories. So with this, we can grow above the market, launching new products of the brand recently launched like Vitasay, Neo Química and the line extensions, increasing our share of the market. So that brought me some memories like the last commercial.

The second question is from Joe Giordano from JPMorgan. For you, Clavis. In the institutional market, can you leverage the portfolio that already exists in retail in that channel? How much more complex is developing injectable products compared to solids? And how do you compare the margin of that channel compared to retail? So it's actually three questions in one.

Okay. Let's go part by part. The existing portfolio is for -- for the institutional channel is for basic care. We did develop this portfolio because we didn't have available capacity to make products available to retail and also for the institutional channel. Now with all the investment in the plant that we've been doing, we're capable of absorbing the demand from these 2 channels, and we can develop this basic portfolio and take it to private and public institutional channels. As to the injectables, what happens is that there is a level of complexity, but you have to invest in technology, you need the platform. And to have the platform, we also need to get ready. We're building a new plant of injectables and steriles that will be ready by 2023. And we're going to look for technology available through partnerships that will allow us to use the volumes -- registers and volumes with this partnership. And when we have the plant ready, we will bring that technology in-house. So there's a lot of potential ahead of us. We're ready to do that, and those pathways are very interesting. About the contribution and profitability of the institutional channel to the company, I will let Breno answer.

The margin is very similar to what we have per category. So comparing generics in retail and generics in the institutional channel, the margins are very similar. So we see that as an opportunity to grow our company's revenue, maintaining the margin for the company. So it's like we said, we have now greater capacity. So it's a way for us to grow the company, maintaining the margin for Hypera.

We have another question for you, Adalmario. It's from Bobby Ford from Bank of America. What are the opportunities with the end of patents that Hypera will get? And how are you getting ready to take advantage of this moment?

Great. We have a strategy that started 4 or 5 years ago when we became 100% pharmaceutical to focus greatly our innovation pipeline both in innovative products as well as extension lines from our brands and also getting ready for future end of patent, which is very relevant, especially looking at 2022 to 2029. We have the end of patents in some categories like diabetes, cardiology, central nervous system, which are large categories. And we've been developing this pipeline to be the first to launch after the patent cease to exist. So the company that can launch. First, right after the end of the patent, we'll get a market share between 30% to 40% of that specific molecule. And we already have many of them in our pipeline. So it's a very relevant potential that we're working with our R&D to develop the products and have everything ready. So it's a steep growth, yes. Every time that a molecule loses its patent, the market expands. It depends on the molecule, of course, but the expansion provides better access to the population. So it's very substantial.

The next question is not directed to one person specifically, but feel free to jump in. It's from Guilherme Assis -- no, I'm sorry. It's for Adalmario. Adalmario is really rocking it. So I'm going to skip -- go back to you, Safra. Gustavo Tiseo from Bradesco. How is the capture of synergies of the acquired brands? Were there any changes compared to the estimates for 2019? When do the tax synergies start for those brands? And how is the capture of marketing and sales synergies?

I can answer that one. And please feel in -- free to jump in. Starting with Buscopan, we just closed in September last year. As I mentioned in my presentation, it's going very well. In the fourth quarter, we had a 4% growth, which is the result of integrating in our marketing and sales platform with very Simple. We bought the brand, but that shows the potential of our platform to go to market. In terms of bringing it in-house, we're going to produce it in-house. In the case of Buscopan, we started producing a secondary packaging for some SKUs, and we're going to have most of them produced by the third quarter in-house, capturing the tax synergies. And as of the beginning of next year, we want to bring the entire production of Buscopan and capture 100% of the synergies of the entire operation. For Takeda, it's more recent. The closing was in the beginning of February. The results at first are very good. Also, the integration is going well. It's a larger team. We brought a team of sales rep, medical reps, marketing team, but it's going well. The teams of Hypera are very excited with all the potential that we have, especially with some drugs like Alektos, Neosaldina, for us to bring to our platform and leverage the sales of these products. Remember that these portfolios came from multinational companies that were trying to sell these portfolios for some time. So there wasn't a lot of investment in those brands, such as launchings, Adalmario already gave some examples. And we are being able to launch that at Hypera. There's a lot to come in terms of launchings on those portfolios as extension lines, both for Buscopan and for Takeda.

Now it's for Vivian and for you, Clavis. The question is from Joseph from JPMorgan. What are the key hurdles, regulatory hurdles for a direct-to-consumer strategy? What part of the portfolio can you work on more easily in the direct-to-consumer channel?

Would you like to start, Clavis?

I'll start with the end, which is basically saying the portfolio, I even commented in my presentation. From our dermocosmetics portfolio, we already have an intense consumption habit in virtual media and direct-to-consumer market. We also see a gradual work in prevention, so vitamins standing out. What are the opportunities for the future connecting the entire digital universe from digital prescription to replenishing shortage? So we need -- so you can replenish that ecosystem, having continuous use products and regular replenishment for consumers. That's maturing. I think that's the next step. It will benefit consumers, patients and people that work with that segment.