Chemical Works Of Gedeon Richter Plc · BET:RICHTER
Chemical Works Of Gedeon Richter — Gedeon Richter — Q3 2024 Earnings Presentation
68 slides from Chemical Works Of Gedeon Richter's earnings presentation, November 2024
Slide 1: Gedeon Richter Investor presentation
Gedeon Richter Investor presentation November 2024
Slide 2: A European specialty mid-pharma company
Gedeon Richter A European specialty mid-pharma company Vision Mission statement Four strategic business segments „To become „We are committed to with revenues in 2023 (EUR mn) a leading improve health and European quality of life globally Midpharma as an independent CNS 538 Company” company” Neurops
Slide 3: Richter at a glance
Richter at a glance 120+ Years ~11,600 8 41 200+ of constant employees manufacturing commercial and molecules development sites marketing manufactured companies EUR 2.1bn+ Vraylar® 2nd position Pan- EUR ~5.1bn sales revenue 46th best-selling in Women's European Mcap in 2023 drug molecule Healthcare
Slide 4: Geographic reach in Women’s Healthcare and General Medicines
Geographic reach in Women’s Healthcare and General Medicines WHC | Direct presence WHC | Through partners WHC + GM | Direct presence No presence Manufacturing units Marketing products in 100+ countries Direct presence in 50 countries 93% of revenue from international sales 50%+ of employees work abr
Slide 5: Building a robust business by 2030 to smoothly tackle Vraylar LoE
Building a robust business by 2030 to smoothly tackle Vraylar LoE The 2030 LoE challenge (pharma revenues, HUF bn) Peak Vraylar royalty to be reached in 2029 (based on AbbVie’s peak sales estimate) WHC BIO CNS GM Other 747 656 206 146 Non-Vraylar revenues need to grow 505 457 46 consistently and mat
Slide 6: Neuropsychiatry
Neuropsychiatry CNS 6 6
Slide 7: CNS – world-class R&D with a multiple blockbuster & strong pipeline
CNS – world-class R&D with a multiple blockbuster & strong pipeline Revenues (HUF bn) Clean EBIT (HUF bn) R&D expenses (HUF bn) +41.0% +34.7% +12.7% +22.6% +37.4% +52.0% 205.7 174.9 24.7 22.0 145.9 129.9 17.9 106.2 85.4 2021 2022 2023 2021 2022 2023 2021 2022 2023 • Original research in CNS leverage
Slide 8: CNS – focus on disease symptom domains
CNS – focus on disease symptom domains Changes in emotional Affective symptoms Hallucinations, responsiveness delusions, thought disorders, movement disorders Negative Positive symptoms symptoms Loss of motivation, social withdrawal Problems with executive functioning, focusing, working memory Richt
Slide 9: The success of cariprazine
The success of cariprazine • Oral, once daily atypical antipsychotic discovered by Richter and co-developed with Forest Laboratories (acquired by AbbVie) • Approved indications: USA (Vraylar®): schizophrenia, bipolar mania, bipolar depression, adjunctive therapy to antidepressant for major depressiv
Slide 10: Cariprazine – strong license partners globally
Cariprazine – strong license partners globally Gedeon Richter Available in 66 CEE & RU/CIS, Vietnam countries through 5 Recordati – WEU & Tunisia continents WhanIn In addition to the AbbVie Dexcel U.S., also available South Korea USA, Canada, Israel in 11 other LatAm, Japan, countries with Taiwan MP
Slide 11: Key Vraylar competitors in the US
Key Vraylar® competitors in the US Major Depression API Bipolar Bipolar Schizophrenia (adjunctive Other indications & information (Brand, Originator) Mania Depression therapy) Cariprazine (Vraylar; AbbVie/Richter) Agitation in Alzheimer's-type Dementia; Brexpiprazole PTSD is filed for ap
Slide 12: CNS – Research pipeline
CNS – Research pipeline Preclinical Phase I Phase II Phase III MAA RGH-932/ABBV-932 Partnered with AbbVie Bipolar depression, generalized anxiety disorder, major depressive disorder RGH-857 RGH-202 RGH-662 o/w 4 projects 7 preclinical projects partnered with AbbVie Partnering strategy: • looking for
Slide 13: Women’s Healthcare
Women’s Healthcare WHC 13 13
Slide 14: WHC – to be the No.1 player in Europe by 2030
WHC – to be the No.1 player in Europe by 2030 • A vertically integrated business line with state-of-the- • Mithra deal allows Richter to take full ownership of art manufacturing and strong on-the-ground sales and the novel E4 platform, providing worldwide rights to marketing platforms Estelle /Drove
Slide 15: Women’s Healthcare – rich in history, full of ambitions
Women’s Healthcare – rich in history, full of ambitions Foundation Expansion Acceleration 1901 1902 1908 1930 1966 1994 2010 2010 2013 2015 2016 2017 2018 2020 2021 2022 2023 2024 Publicly Richter-Grünenthal, Lenzetto® innovativ License and supply Acquisition of Crystaline oestron Foundation Tablett
Slide 16: More than two decades of dynamic revenue growth
More than two decades of dynamic revenue growth WHC revenues (EUR mn) • Internationally acknowledged expertise in steroid chemistry • FDA/EMA compliant manufacturing • Dorog: one of the top steroid manufacturing sites in Europe EEU • Richter is among the very few pharma companies in the world, CEU w
Slide 17: WHC – Wide coverage portfolio for all age groups
WHC – Wide coverage portfolio for all age groups Drovelis Digital Human Bemfola Ryeqo Oral technology papilloma Lenzetto Cyclogest contraceptives such as smart virus causes Transdermal Evra phones, a transient spray Transdermal computers, infection that Donesta patch smart is a leading watches, caus
Slide 18: Contraception – the leading provider in Europe in 2024
Contraception – the leading provider in Europe in 2024 Oral contraceptives European market share (%) in contraception (in cycles) 25 20 15 Emergency contraceptives 10 5 0 Mid-term contraceptive Jan-16 Jan-17 Jan-18 Jan-19 Jan-20 Jan-21 Jan-22 Jan-23 Jan-24 Jul-16 Jul-17 Jul-18 Jul-19 Jul-20 Jul-21 J
Slide 19: Contraception – external innovation complement traditional products
Contraception – external innovation complement traditional products Evra® Evra® - Turnover (EUR mn) • Asset purchased in 2021 from Janssen Pharmaceutica NV 79 • Transdermal contraceptive patch 73 ‒ first transdermal hormonal patch approved • Geographies covered: worldwide ex-USA 38 • Purchase price:
Slide 20: Fertility – broad range of complementary solutions for infertility specialists
Fertility – broad range of complementary solutions for infertility specialists • The global infertility market is anticipated to grow at a CAGR of 12.8% and to reach USD 3.65bn in 2022-2030* • The common causes of infertility in women include ovulation disorders, cervical or uterine abnormalities, f
Slide 21: Endometriosis – Ryeqo had a kick-start in an area of high unmet need
Endometriosis – Ryeqo had a kick-start in an area of high unmet need • Globally, 190mn women are suffering from endometriosis. Currently no cure exists, and treatments focus on symptom management • Based on prevalence and high unmet need, the market potential for endometriosis is estimated at USD 18
Slide 22: Menopause - taking hormonal management to the next level
Menopause - taking hormonal management to the next level • Menopause is another area of high unmet need globally • Based on the age distribution of the population and share of symptomatic cases, it is estimated that more than 450mn women worldwide have menopause and perimenopause symptoms • Based on
Slide 23: Strategic options for Richter’s WHC business
Strategic options for Richter’s WHC business Multiple options Innovative Original Research RISK Consumer Health Complexity and ROI 23
Slide 24: On the way to become the leading Women’s Healthcare company in Europe by 2030
On the way to become the leading Women’s Healthcare company in Europe by 2030* Market share of Richter (%) and the Market share of Richter relative to the market addressable market size (quarterly, EUR mn)* leader and Richter’s market position* 100 12 1 000 2 2 80 2 2 11 900 3 3 2 2 3 3 60 3 10 800
Slide 25: Biotechnology
Biotechnology BIO 25 25
Slide 26: BIO – proprietary biosimilars and a complementary CDMO business
BIO – proprietary biosimilars and a complementary CDMO business • The Biosimilar opportunity: the fastest growing • BIO in Germany (100% owned post-HELM deal): high subsegment in pharmaceuticals, as more than 50 biological quality microbial R&D and manufacturing CDMO blockbusters (USD 1bn+) with tot
Slide 27: Gedeon Richter Biotechnology business unit focus
Gedeon Richter Biotechnology business unit focus Development and manufacturing of Biosimilars/Biologics Commercialization of Biosimilars/Specialty products for treatment of Rheumatology, other Auto-immune diseases and Osteoporosis (RIO) in Europe and Australia Axial spondylo- Psoriasis Psoriatic art
Slide 28: Richter Biosimilar portfolio and product pipeline
Richter Biosimilar portfolio and product pipeline Molecule7 Indication Originator Early CMC dev Late CMC dev Clinical dev Submission Commercial BEMFOLA® * Infertility r-hFSH TERROSA® Osteoporosis Teriparatide RGB14 Osteoporosis Denosumab Oncology RGB26 Autoimmune Ustekinumab diseases RGB19 Autoimmun
Slide 29: Teriparatide biosimilar partnered globally with total sales of ~EUR 125mn in 2023
Teriparatide biosimilar partnered globally with total sales of ~EUR 125mn in 2023 Europe: Richter & Stada Canada: Avir Japan: Mochida South Korea: MENA: Tabuk Daewon Taiwan, Thailand: Lotus Israel: Dexcel Colombia: Richter Turnover booked by Richter (HUFbn) Malaysia, Singapore, 20.9 21.7 Philippines
Slide 30: Richter BIO facilities
Richter BIO facilities RichterBioLogics facilities in Germany Bovenau up to 1500 liter Bovenau (RB) (microbial, DS prod.) Hamburg (RB) Hannover (microbial, R&D) Hannover (RB) up to (microbial, DS pilot plant) Debrecen (GR) (mammalian, 300 DS/DP prod.) liter Budapest (GR) (mammalian, R&D) Hamburg • H
Slide 31: Richter BioLogics Germany – Increased production capacity for microbially expressed Biopharmaceuticals
Richter BioLogics Germany (RB) – Increased production capacity for microbially expressed Biopharmaceuticals Complete Drug Substance Development & Manufacturing from one Source Strain Development Process Development / Process Transfer Clinical Trial Supply Commercial / Optimization Analytical Develop
Slide 32: Biotechnology R&D – Budapest
Biotechnology R&D – Budapest • R&D facilities cover process technology and analytical method development laboratories • Full service portfolio to address small-scale and scale- up development requirements • Small scale process development/clone selection capabilities (AMBR – 200 L) • Formulation dev
Slide 33: Mammalian cell expressed DS and DP manufacturing facilities – Debrecen
Mammalian cell expressed Drug Substance (DS) and Drug Product (DP) manufacturing facilities – Debrecen DS DP • 2 x 5000 L stainless steel • Syringe, cartridge, vial filling fermentation capacity (RABS) • 4 x 2000 L single use • Automated freeze drying & 2 x 50 L pilot scale • Variable batch sizes bi
Slide 34: General Medicines
General Medicines GM 34 34
Slide 35: GenMed – driving sustainable growth through affordable medicines
GenMed – driving sustainable growth through affordable medicines Central Europe: EUR 271mn sales in 2023 Revenues (HUF bn) Other CE +19.6% 23% Hungary 43% 13% Romania 225.9 226.9 21% 189.8 Poland 2021 2022 2023 Other regions: Clean EBIT (HUF bn) EUR 48mn sales +17.5% Eastern Europe: EUR 275mn sales
Slide 36: GM strategy builds on its strengths and capture market tailwinds
GM strategy builds on its strengths and capture market tailwinds COMPLEMENTARY OTC RETAIL PORTFOLIO Hold presence in Muscolosceletal and Antiinfectives 36 1.Cardiology, Blood, and Diabetes
Slide 37: Focus TAs provide growth opportunities for GenMed in 2024-35
Focus TAs provide growth opportunities for GenMed in 2024-35 Estimated worldwide sales of molecules (in 2023) with LoE in 2024-2035 (EUR bn) in GenMed’s key TAs 34 Musculoskeletal 110 Musculoskeletal 6 Immunomodulators Immunomodulators Endocrine Endocrine 25 Central Nervous System 36 Central Nervous
Slide 38: Diverse and well-balanced portfolio delivering solid growth
Diverse and well-balanced portfolio delivering solid growth Total GenMed revenue by therapeutic areas (HUF bn) Key messages +10.6% • Cardio and CNS are the GenMed powerhouses and remain 186 foundational strength for GenMed, continuing to drive robust 163 168 20 Cardio performance across core markets
Slide 39: Research and Development
Research and Development R&D 39 39
Slide 40: Major developments in R&D in Q3 2024
Major developments in R&D in Q3 2024 WHC • The integration of BCI Pharma and Estetra (Mithra R&D team) has progressed to the final stage to maximize synergies, utilize talent and establish Richter’s own gynecological original preclinical research. Currently there are projects in mid- to-late-preclin
Slide 41: R&D pipeline – changes during Q3 2024
R&D pipeline – changes during Q3 2024 Market Preclinical phase** Clinical phase** Regulatory & Launch Phase 1 Phase 2 Phase 3 Own Technology Development Clinical phase Neuropsychiatry Biotechnology Women’s Healthcare Own RSL* General Medicines new discontinued License * Ready-to-Sell Licensed pipeli
Slide 42: Sustainability
@) Sustainability [essa
Slide 43: The role and place of ESG in Richter
The role and place of ESG in Richter ESG Governance and main supporting functions Women on Board Supervisory Board Board of Directors Board of Directors 40% ESG Committee CEO 33% Ratio of women amongst managers (all levels): 36% IR and ESG Ratio of women in total workforce: 49% EHS Focus areas in ES
Slide 44: Carbon emissions: progressing towards our 2030 targets
Carbon emissions: progressing towards our 2030 targets Richter carbon footprint in Hungary (Scope 1-2-3, kt CO2eq/year) Key messages 364 -6.6% -5.6% • By 2023 Richter rolled out its carbon footprint -7.5% calculation to all key subsidiaries to arrive at a Group 242 226 213 level emission model, whic
Slide 45: ESG focused initiatives
ESG focused initiatives Preservation of natural resources: optimization of water consumption Water consumption in Richter, Hungary Efficient water consumption 1992-2023 • Continuous reduction in water consumption by: 5 000 4 500 Process optimization for efficient water use in 4 000 our technologie
Slide 46: Steroids in wastewater – well below the safety threshold
Steroids in wastewater – well below the safety threshold Pharmaceuticals in the environment - steroids PEC/PNEC* API Site Roll-out (acceptable value <1) • Following the working out and acceptance of a risk desogestrel Budapest 2023 0.11 assessment system and methodology, we rolled out a drospirenone
Slide 47: Diversity vision
Diversity vision The presence of diverse experience, Key initiatives: knowledge, professional background, skills, opinions and thoughts enables us to elevate • Analysis of existing • Focus groups on • DEI the standard of care in key therapeutic Mapping DEI HR data and special issues and/or organizat
Slide 48: Risk management framework
Risk management framework Integral part of Richter's activities and corporate governance system Regular reports to decision-making bodies Independent risk management function Holistic and integrated risk management system Connected to the realization of strategic goals Rules, regulations, limits, co
Slide 49: Key financial, strategic and operational risks
Key financial, strategic and operational risks Financial risks Main strategic and operational risks Risk Mitigation Risk Mitigation Hedging strategy, New sources of supply for manufacturing, V Currency risk Russian-Ukrainian war* natural hedges, shorter monitoring system, compliance with H Most of C
Slide 50: Financials
® — Financials GS) -_
Slide 51: Business units’ P&L in 2023
Business units’ P&L in 2023 Pharma WHC CNS BIO GM Pharma Other Eliminations Group total Other Revenues 255.7 205.7 46.2 226.9 13.0 747.4 70.9 -13.2 805.2 Cost of Sales -86.4 -1.2 -29.4 -105.1 -11.3 -233.5 -63.2 13.0 -283.6 Gross Profit 169.3 204.4 16.8 121.7 1.7 514.0 7.7 -0.1 521.5 Sales & Marketin
Slide 52: Pharma Revenues – on track to meet 2024 guidance
Pharma Revenues – on track to meet 2024 guidance HUF 821-866bn 827 (EUR 2.15-2.25bn) 747 12 +15.2% 13 656 236 WHC 14 206 GM 505 146 54 BIO 457 13 46 407 41 CNS 13 106 12 91 245 Other 57 31 227 14 24 226 184 190 189 256 281 229 135 146 165 2019 2020 2021 2022 2023 LTM* 2024G** • WHC: Nearly doubling
Slide 53: Gross margin and operating costs
Gross margin and operating costs Gross margin and COGS as % of pharma revenue Opex as % of pharma revenues Sales & Marketing G&A expenses R&D 30 26.6% 34.3% 32.6% 33.0% 31.8% 31.2% 31.7% 25 21.3% 21.1% 21.1% 20 18.9% 18.3% 15 12.0% 11.8% 12.1% 11.4% 67.4% 68.2% 68.8% 68.3% 10.5% 10.8% 65.7% 67.0% (2
Slide 54: Clean EBIT – 20%+ growth to continue in 2024
Clean EBIT – 20%+ growth to continue in 2024 Clean EBIT 12.8% 26.6% 28.3% 31.4% 31.6% 32.5% margin % HUF 277-287bn (EUR 725-750mn) 268 236 51 WHC +24.8% 206 39 GM 42 BIO 46 43 CNS 143 Other 50 122 32 25 37 197 52 32 175 130 35 75 85 36 -7 -12 -11 -20 -21 -18 -13 2019 2020 2021 2022 2023 LTM 2024G**
Slide 55: Sources and application of cash – M&A in 2023-24 absorbed material part of FCF
Sources and application of cash – M&A in 2023-24 absorbed material part of FCF generated in last 5Y Sources and application of cash annually, 2019-H1 2024 (HUF bn) 275 274 37 Op.Cash Flow before ch. in NWC 238 223 67 Interest received 215 20 40 Change in NWC 183 62 168 Capex (PP&E) Last 5Y cumulativ
Slide 56: Distribution of net income – dividends and share buyback
Distribution of net income – dividends and share buyback Dividend per share and the payout ratio (HUF; %) Key messages 450 432 90 • Dividend is the primary channel of distribution Payout ratio (%, rhs) 391 to shareholders 400 Dividend 80 350 70 • Payout ratio increased to close to 50% in the 60 last
Slide 57: Shareholders structure
Shareholders structure 4% 5% 5% 10% International institutional investors Domestic institutional investors 10% Retail investors Free float: Foundation for National Health and Education of Medical Doctors ~73% 2% Maecenas Universitatis Corvini Foundation Mathias Corvinus Collegium Foundation Treasury
Slide 58: Executive compensation overview
Executive compensation overview Short-term incentive: CEO KPIs Short-term incentive is an annual bonus set as a fixed % of the salary based on the executive’s job level (100% for CEO). Main KPIs: CEO and CFO payout breakdown in 2023 • cEbit growth • New product registration/launch • Key/flagship pro
Slide 59: Q1-Q3 2024 update
Q1-Q3 2024 update 59 59
Slide 60: Q1-Q3 2024 highlights – on track to deliver
Q1-Q3 2024 highlights – on track to deliver Q1-Q3 2024 CER revenue growth +12% Pharma Revenues (CER*) EUR 2.15-2.25bn (FX now a tailwind of +2.5ppt) guidance to grow „low-to-mid-teens”% Q1-Q3 2024 CER Clean EBIT growth +16% (EUR 537mn) 2024 original guidance still in place; new items to have come on
Slide 61: Pharmaceutical revenues (ex-FX) rose by 12% in Q1-Q3 2024
Pharmaceutical revenues (ex-FX) rose by 12% in Q1-Q3 2024 Pharmaceutical Revenues, cumulative (HUF bn, EUR mn) Pharmaceutical Revenues by region (HUF bn) +14.5% +12.0% 98.7 Western Europe 114.7 Central Europe 111.8 626.9 613.0 1,602 Pharma other 131.3 547.4 GM Eastern Europe 122.9 130.1 BIO North Am
Slide 62: Clean EBIT (ex-FX) increased by 16% in Q1-Q3 2024
Clean EBIT (ex-FX) increased by 16% in Q1-Q3 2024 Pharmaceutical Clean EBIT, cumulative (HUF bn, EUR mn) Key messages +18.1% +16.0% • Clean EBIT (pharma) rose by 18% YoY in Q1-Q3 2024 to HUF 209bn, as earnings growth slowed somewhat in Q3 534.1 209.0 205.3 • FX remained a tailwind in Q3; FX-adjusted
Slide 63: Below-the-line: FX gains disappear, strong bottom line remains
Below-the-line: FX gains disappear, strong bottom line remains Net Profit in Q1-Q3 2024, below-Clean EBIT items (HUF bn) Includes mostly inventory 209.2 Includes taxes calculated in line impairment (HUF 9bn) and provisions (HUF 5bn) with Global Minimum Tax; some M&A-related deferred tax income 19.0
Slide 64: Strong FCF in Q3 partly offset earlier M&A-related outflows
Strong FCF in Q3 partly offset earlier M&A-related outflows Free Cash Flow in Q1-Q3 2024 (HUF bn) Key messages 219.0 o/w HUF 53bn in Q3 Application of Cash Flow • Free Cash Flow generation remained robust in Q3 at HUF 53bn, bringing Q1-Q3 30.4 188.5 11.9 2024 FCF to HUF 164bn, more than 36.4 164.1 3
Slide 65: Leadership team
Leadership team Gábor Orbán István Hamecz Dr István Greiner CEO CFO R&D Director Appointed Chief Executive Officer from Graduated at Corvinus University Budapest Appointed Research Director in 2014. November 1, 2017. Began his professional in 1991. He started his career in the Chemical engineer (M.S
Slide 66: Leadership team
Leadership team Katalin Erdei Attila Szénási Tamás Szolyák HR & Technical Director Chief Operating Officer Director of Global Regulatory Science and Commerce & Marketing After graduating at the University of Szeged Joined the Company in 2019 as Director Joined the company in September 2018 as from t
Slide 67: Contacts
Contacts Financial calendar Company name: Gedeon Richter Plc. | 28 February 2025 – preliminary FY2024 results Sector: Pharmaceutical Company address: 1103 Budapest, Gyömrői út 19-21., Hungary Telephone: +36 1 431 5764 Investor relations manager Róbert Réthy, CFA +36 20 342 2555 investor.relations@ge
Slide 68: Disclaimer
Disclaimer This presentation may contain forward-looking statements, that may include, but are not limited to, those regarding capital, investment, cash flows, demand, earnings, efficiency, production, profits. These forward-looking statements are subject to risks, uncertainties, and other factors,