Acrux Limited · ASX:ACR
Acrux — Investor Presentation (May 2012)
17 slides from Acrux's investor presentation, May 7, 2012
Slide 1: Acrux (ASX: ACR)
For personal use only Acrux (ASX: ACR) 7 May 2012
Slide 2: Forward-Looking Statements
2 FORWARD-LOOKING STATEMENTS For personal use only This presentation includes forward-looking statements that are subject to risks and uncertainties. Such statements involve known and unknown risks and important factors that may cause the actual results, performance or achievements of Acrux to be ma
Slide 3: Acrux (ASX: ACR) at a Glance
3 ACRUX (ASX: ACR) AT A GLANCE For personal use only • Market cap ~$650m; joined S&P/ASX 200 in September 2011 • Pooled Development Fund; capital gains and dividends exempt from tax • Unique, patented technology for delivering drugs through the skin; commercialisation through partnerships • Key prod
Slide 4: ACR Share Price Performance Since IPO
4 ACR SHARE PRICE PERFORMANCE SINCE IPO For personal use only 60 cents ASX 200 dividend Axiron FDA approval Lilly deal $23m placement Axiron Evamist to fund Axiron Phase 3 Phase 3 success success $30m IPO
Slide 5: Axiron Partnership with Eli Lilly
5 AXIRON PARTNERSHIP WITH ELI LILLY For personal use only • Lilly receives exclusive worldwide rights to Axiron • Acrux revenue: – US$50 million on signing (received 2009/10) – US$3 million on transfer of manufacturing assets (received 2010) – US$87 million on FDA marketing authorisation (received 2
Slide 6: Lilly Is Committed to Men's Health
6 LILLY IS COMMITTED TO MEN’S HEALTH For personal use only • Cialis® rivals Viagra® globally as leading erectile dysfunction treatment • Investment in promotion to specialists, primary care physicians and direct-to-consumer
Slide 7: Testosterone Market Growth Continues
7 TESTOSTERONE MARKET GROWTH CONTINUES Male Testosterone Therapy Market, United States 2005 to 2011 (US$million) For personal use only 24% 29% 29% 21% 20% 15% Source: IMS data • 5 Year CAGR = 24.5% • Q1 2012 year-on-year growth = 28% • Transdermal therapies comprise 93% of sales
Slide 8: US Market Dynamics Since Launch
8 US MARKET DYNAMICS SINCE LAUNCH For personal use only Share of Total Prescriptions (TRx) for transdermal products in United States April 2011 April 2012 Change Axiron® - 12% +12% Androgel® 1% 72% 37% -35% Androgel® 1.62% - 26% +26% Testim® 20% 17% -3% Androderm® 7% 5% -2% Fortesta® 1% 3% +2% Total
Slide 9: US Reimbursement Process
9 US REIMBURSEMENT PROCESS For personal use only • INSURANCE PLANS meet the cost of approved medicines, but require a patient CO-PAY • The CO-PAY is determined by inclusion on a FORMULARY • Payers may wait 9-12 months to add new products to a formulary • While formulary access builds, co-pay cards c
Slide 10: System Cashflows
10 SYSTEM CASHFLOWS For personal use only Pharmaceutical company Interim partial rebate of co-pay supply price Pharmacy reimbursement Patient Health insurance plan co-pay1 supply chain premiums Plan member (e.g. employer) 1 amount of co-pay determined by plan drug formulary access (tier 2 < tier 3 <
Slide 11: Royalty Revenue Dynamics
11 ROYALTY REVENUE DYNAMICS For personal use only Multiple factors combining to drive future growth of Acrux’s royalty revenue: Royalty = (US market size x US market share – Rebates + Ex-US sales) x average royalty % Trend: US Net sales since launch Q1 Q2 Q3 Q4 Total Q1 2011 2011 2011 2011 2011 2012
Slide 12: Ex-US Markets
12 EX-US MARKETS For personal use only • Lilly distributes products into 125 countries • Lilly responsible for obtaining marketing authorisations for Axiron in ex-US countries – Canada authorisation received in April 2012 – Decisions in Australia and select European countries expected in 2012 – Appl
Slide 13: Patent Protection
13 PATENT PROTECTION For personal use only Underarm administration Formulation and delivery system Granted Au; expiry 2026 Granted major markets; expiry 2017 Other markets pending Applicator Composition Designs Granted US; expiry 2030 Granted AU, NZ, Eurasia, India, Applications pending Other market
Slide 14: Animal Health
14 ANIMAL HEALTH For personal use only • Exclusive global licence for animal health products utilising Acrux’s delivery technology • Acrux earns royalties plus product approval milestones • First product Recuvyra® approved for marketing in Europe – launch H1 2012 • Recuvyra under review by FDA – dec
Slide 15: Financials
15 FINANCIALS For personal use only FY 2009/10 FY 2010/11 HY 2011/12 Actual Actual Actual Revenue 56m1 93m2 4.7m Profit before tax 49m 82m 1.7m Tax (charge)/benefit (2m) (25m) 3.4m Profit after tax 47m 57m 5.1m Earnings per share 29 cents 35 cents 3 cents Dividend (tax-free) - 60 cents - Cash 59m 33
Slide 16: Outlook
16 OUTLOOK For personal use only • Financial guidance: – Revenue from Axiron 2011/12: US$6m – US$7m; 2012/13: approximately US$40m – Expenditure 2011/12: $0.5m per month, partly offset by technical services to Lilly – Dividend 2011/12 to be declared in August 2012 • 2012 business milestones: – Axiro
Slide 17: For personal use only
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