Kyorin Pharmaceutical Co.,ltd. · TSE:4569
Kyorin Pharmaceutical Co.,ltd — FY2017 Earnings Presentation
30 slides from Kyorin Pharmaceutical Co.,ltd's earnings presentation, May 11, 2018
Slide 1: Financial Results for Fiscal 2017
Financial Results for Fiscal 2017 May 11 , 2018 KYORIN Holdings, Inc. P President id t Minoru Mi H Hogawa
Slide 2: Outline of Consolidated Financial Results
Outline of Consolidated Financial Results ・Trends of mainstay products Consolidated Financial Results and Forecast St t off development Status d l t pipeline i li Initiatives toward realization of the long-term vision “HOPE 100” ・Progress of Medium-Term Medium Term Business Plan “HOPE HOPE 100-
Slide 3: Outline of Consolidated Financial Results
Outline of Consolidated Financial Results 3
Slide 4: Outline of Consolidated Financial Results for Fiscal 2017
Outline of Consolidated Financial Results for Fiscal 2017 （unit : ¥billion） Change Change FY2016 FY2017 Change (%) (revised forecast) Net Sales 115.4 110.6 －4.8 －4.1 －0.7 Operating Income 10.4 8.8 －1.6 －15.3 －1.7 Ordinary Income 10.9 9.3 －1.6 －14.1 －1.6 Net Income 7.3 6.6 －0.7 －10.0 －1.2 4
Slide 5: Breakdown of Gain and Loss
Breakdown of Gain and Loss （unit : ¥billion） Change Change FY2016 FY2017 Change (%) (revised forecast) Net Sales 115.4 110.6 －4.8 －4.1 －0.7 109.6 104.7 ー4.9 ー4.4 －0.６ 84 5 84.5 77 0 77.0 ー7.5 ー8.9 －0.2 Sales of Ethical drugs new Japan 83.8 73.7 ー10.1 ー12.0 ー0.5 business ethical drugs Overs eas 0.8 3
Slide 6: Highlights of Business Performance ① (Sales)
Highlights of Business Performance ①（Sales） （ Units: ¥ billion ） 【 Net Sales ¥－4.8bln】 120 115.4 Healthcare Business ＋0.1bln 110.6 5.8 ・The distribution of hand hygiene 5.9 products sales start ・Growth of RUBYSTA and Milton 100 25 ・Transfer the stocks of the skincare business 27.7 0.8 【 Ethical Drug
Slide 7: Highlights of Business Performance ② (Income)
Highlights of Business Performance ②（Income） （ Units: ¥ billion ） 【Operating Income ¥－1.6bln】 Gross Profit decreased 100 Net Sales： decreased ¥4.8bln year on year Cost of sales ratio : －2.9 Increased 0.2% y year on y year ・Decrease of sales of new ethical drugs 80 －2.0 ・Increase in loss on retiremen
Slide 8: Highlights of Business Performance ③
Highlights of Business Performance ③ （Change g : original g forecast)) Change FY2017 FY2017 Change Change (revised （ Units: ¥ billion ） (forecast) (actual) (%) forecast) Net Sales 111.3 110.6 －4.8 －4.1 －0.7 105.3 104.7 ー4.9 ー4.4 －0.６ 77.2 77.0 ー7.5 ー8.9 －0.2 Sales S l off Ethical drugs new Japan 74.
Slide 9: Mainstay Product Sales
Mainstay Product Sales （ Units: ¥ billion ） Change FY2016 FY2017 Change Change(%) (revised forecast) Flutiform (Combination drug for asthma treatment) 10.1 11.9 ＋1.8 ＋18.1 ー0.1 Uritos （Overactive bladder) 7.5 7.2 ー0.3 ー3.7 ー0.1 Desalex (A ti ll i Agent) (Antiallergic A t) 1.0 4.9 ＋3.9 ＋404.8 ＋1.４ Ki
Slide 10: Trends of mainstay products
Trends of mainstay products 10
Slide 11: Respiratory/Otolaryngology: Flutiform and Kipres
■Respiratory/Otolaryngology （ Units: ¥ billion ） Flutiform 【Anti-asthmatic】 Kipres 【Bronchial asthma and allergic rhinitis treatment】 （ Units: ¥ billion ） 44.1 41.2 12 40 10 15.4 32.7 14.5 30 8 14 9 14.9 6 11.9 12.3 18.8 20 10.1 4 13.2 7.2 26.7 28.6 10.5 10 17.7 17 7 7.2 Children 2 3.6 8.3 6 Adult 0
Slide 12: Respiratory/Otolaryngology: Desalex and Nasonex
■Respiratory /Otolaryngology （ Units: ¥ billion ） Desalex(Antiallergic Agent) Nasonex（Spray type allergic rhinitis remedy） 8 Concluded co-promotion contract with MSD (Sep. 2016) 6 ■ Acquire domestic exclusive distribution rights (May.2018） 4 81 8.1 [Sales start] August 2018 (planned) 4.9 [Sales fore
Slide 13: Urology
■Urology （ Units: ¥ billion ） （ Units: ¥ billion ） OAB market Uritos（Overactive bladder) 100 8 87 90 91 81 80 77 β3 19 26 30 34 receptor 6 14 agonist 60 others 4 40 7.3 7.5 7.5 7.2 68 6.8 63 62 61 60 57 anticholiner 20 gic agent 2 0 14/3 15/3 16/3 17/3 18/3 0 15/3 16/3 17/3 18/3 19/3 出典：Copyright ©
Slide 14: Status of Generic Drugs
■Status of Generic Drugs Kei （ Units: ¥ billion ） 30 27.7 27.4 25.0 25 MONTELUKAST AG status of FY2017 11.7 9.8 8.2 Turnover increase , MONTELUKAST AG:＋￥3.5bln 20 【 price rivision rate ▲18.0%】 Turnover decrease rate, excluding AG ・Increase of Health insurance pharmacy marketʼs sales, 15 ・Decrease
Slide 15: Consolidated Financial Results and Forecast
Consolidated Financial Results and Forecast 15
Slide 16: Consolidated Financial Results Forecast for the Year Ending March 31, 2019
Consolidated Financial Results Forecast for the Year Ending March 31, 2019 （ Units: ¥ billion ） FY2018 Y/Y FY2017 （forecast） Change Change(%) Net sales 110.6 114.4 ＋3.8 +3.4 104.7 108.4 ＋3.7 ＋3.5 77 0 77.0 80 9 80.9 ＋3.9 39 ＋5.0 50 Sales of Ethical drugs new ethical Japan 73.7 79.9 ＋6.2 ＋8.4 busines
Slide 17: Forecast of Mainstay Product Sales
Forecast of Mainstay Product Sales （ Units: ¥ billion ） Y/Y FY2018 FY2017 （forecast） Change g Change(%) g ( ) Flutiform (Combination drug for asthma treatment) 11.9 12.3 ＋0.4 ＋4.1 Uritos（Kyorin） (Overactive bladder) 72 7.2 68 6.8 －0.4 0.4 －4.7 4.7 Desalex (Antiallergic Agent) 4.9 8.1 ＋3.2 ＋65.3 Kipr
Slide 18: Shareholder Returns
Shareholder Returns Basic Policy - While maintaining the sound financial base base, adopt the capital policy ensuring both growth investment and stable return to shareholders. - In shareholders return return, aim for stable dividends dividends. Dividend per share for fiscal 2018 (estimate): ¥58 (Yea
Slide 19: Status of development pipeline
St t off development Status d l t pipeline i li 19
Slide 20: Drug Development Pipeline: Progress in FY2017, schedule of FY2018
Drug Development Pipeline: Progress in FY2017, schedule of FY2018 17年度の進捗 progress in FY17 18年度の取り組み schedule of FY18 development code PhⅠ PhⅡ PhⅢ application Approval/ Launch E d off the End th PhⅠ／PhⅡ Ad-SGE-REIC PhⅡ start Respiratory KRP-108P 2017/6 FY19 Expected KRP-AM1977X 2017/4 Release Infect
Slide 21: Overactive bladder treatment KRP-114V
Overactive bladder treatment ｢KRP-114V｣ generic name ： Vibegron Status of develpoment p g for Application Preparing pp Clinical Phase III study Study: A double-blind comparative study for verifying the efficacy and safety of the drug in OAB patients Result: The drug was shown to be superior to a p
Slide 22: Therapeutic Agent for Nocturia: KRP-N118
Therapeutic Agent for Nocturia: KRP-N118 Concluded a licensing agreement with Sanwa Kagaku Kenkyusho Co., Ltd. （March 2018） [Development status] Phase II clinical study [Mechanism of action] A vasopressin V2 receptor agonist that promotes the reabsorption of water by the collecting duct of the kidne
Slide 23: Expansion of product lineup in the area of urology
Expansion of product lineup in the area of urology Cause of nocturia Nocturia Overactive bladder Nocturnal （OAB) polyuria Uritos (anticholinergic agent) KRP-N118 (Vasopressin V2 KRP 114V KRP-114V receptor agonist) (β3 receptor agonist) Interstitial cystitis KRP-116D is under development Aim to impro
Slide 24: Progress of Medium-Term Business Plan HOPE 100-Stage 2
Progress of Medium-Term Business Plan “HOPE O 100-Stage S 2-” (Fiscal ( 2016～2019)) 24
Slide 25: Outline of HOPE 100-Stage 2
Outline of“HOPE 100-Stage 2-” 【Four Priority Strategies】 ①Strengthening of the Ability to Discover New Drugs ②I ②Increase in i the th R Ratio ti off N New DDrugs G Group Business Strategy（S） ③Promotion of Generic Drugs Business by Making the Most of Its Characteristics Strategy ④Strengthening of Low
Slide 26: Efforts on first-in-class drug discovery
Priority strategy: Enhance drug discovery capabilities Efforts on first-in-class drug discovery Cooperation Watarase Research Center ActivX ((USA)) Open innovation Open innovation Academia venture Academia, ent e Pharmaceutical Pha mace tical companies in Japan and overseas Selection and concentrati
Slide 27: Accelerate regrowth with new drug group and new products
Priority strategy: Increase ratio of new drug group Accelerate regrowth with new drug group and new products ・Maximize the dissemination of Flutiform, Desalex, PENTASA Granules, Uritos and Nasonex. ・Launch and disseminate KRP-114V and KRP-1977X. Ratio off new [The ratio of the new drugs group should
Slide 28: Promotion of low-cost operation
Priority Strategy "Strengthening of Low Cost“ Promotion of low-cost operation ■Consolidation of the Groupʼs production functions Noshiro plant (Akita) Inami plant (Toyama） Shiga plant （Shiga） New production subsidiary: KYORIN Pharmaceutical Facilities Co., Ltd. Commences full-scale operation on Apri
Slide 29: Aim to be the next core business: Diagnostic business
Fostering strategy: Diagnostic business Deployment of diagnostic business using GeneSoC ultrafast gene quantitative system ■Characteristics of GeneSoC ultrafast gene quantitative system ・Rapid detection of genes based on the technology of ultrafast quantitative PCR* （5-6 minutes） ・High-sensitivity H
Slide 30: Enhancement of the basis for growth
Important points in facilitating the FY2018 business strategy Make a change in advance and create a new scenario for growth Enhancement of Improvement of the basis for growth earning power ・Drug discovery of an original new drug ・Drug discovery of a new drug and creation of a market with a new drug