Almirall Sa · BME:ALM
Almirall Sa — Merger or Acquisition (October 2007)
20 slides from Almirall Sa's merger presentation, Oct 8, 2007
Slide 1: European portfolio and sales network acquisition from Shire plc.
European portolio and sales network acquisition from Shire plc. Oct. 8th 2007 1 Deal Announcement
Slide 2: Introduction
Introduction 2
Slide 3: Background
Background Almirall recently completed its IPO and trading commenced on 20 June 2007 The strategy communicated at the time of IPO was to use the proceeds to fund business growth to 9 Increase international presence through partnerships and/or acquisitions 9 Leverage R&D pipeline Almirall compl
Slide 4: Key Transaction Highlights
Key Transaction Highlights The acquisition comprises the rights for 8 products and 63 sales & marketing staff, mainly in the UK and other key European countries (Germany, France, Italy, Spain and Ireland) Cash acquisition of these assets for $ 213 million (€ 151 million)1. Transaction financed
Slide 5: Strategic rationale
Strategic rationale • Contributes to reinforce Almirall’s European expansion • Provides critical mass to consolidate a UK affiliate • Opportunity to build a patented dermatological franchise throughout Europe in line with the Hermal acquisition • Substitutes part of each toll manufacturing business
Slide 6: 1. Shire portfolio
1. Shire portfolio 6
Slide 7: Business Overview
Business Overview • 53.8M$ portfolio (2006) being divested by Shire • Assets deal – transfer of products and some sales & marketing personnel • Business concentrated in UK – ~70% of total sales • Two promoted dermatology products (SolarazeTM and Vaniqa®) with formulation patent protection until 2013
Slide 8: Portfolio 2006 sales breakdown
Portfolio 2006 sales breakdown Revenue by geography / 53.8M$ Revenue by product type 2% 1% 2% 9% 4% 4% 11% 12% 11% 16% 11% 28% 12% 88% 66% 68% 33% Promoted Non-promoted Total UK France Germany Italy UK France Germany Italy Spain Ireland Others Spain Ireland Others 8
Slide 9: Base Case – Key financials
Base Case – Key financials Shire portfolio revenues ($m) CAGR ’04-‘06: 23% 60 $54m $51m 50 40 $35m $33 $32 30 $25 20 10 $19 $21 $10 0 2004 2005 2006 Promoted Non-promoted 9
Slide 10: Portfolio highlights
Portfolio highligths 1. Two patented dermatological products plus 6 cash-cows 2. Business very concentrated in the UK (68%) Promoted NON-Promoted SOLARAZETM Treatment of Actinic Keratosis LODINE- Rheumatoid arthritis (3%, gel Launched in EU 2001 COLAZIDE- Ulcerative colitis diclofenac sodium
Slide 11: 2. Geographical expansion
2. Geographical expansion 11
Slide 12: Strong geographical fit
Strong geographical fit Adds critical mass in the UK Reinforces Almirall’s pan-European positioning Almirall direct presence Almirall presence through partnerships Shire direct presence 12
Slide 13: Almirall continues its international expansion
Almirall continues its international expansion • Opening of French • Opening of • Subsidiary • Signing of • Acquisition of • Acquisition of subsidiary Italian established Pantopan Sofotec Hermal (acquisition of subsidiary in Germany agreement for (Germany) French company Italy and • Forest Pharmafar
Slide 14: 3. Dermatology
3. Dermatology 14
Slide 15: Attractions of Dermatology Market
Attractions of Dermatology Market Key strategic market for Almirall 9 Hermal’s acquisition strengthened Almirall’s commitment with the derma market 9 One product for psoriasis in phase II (LAS37779) and several other dermatological programmes in discovery feasibility Specialist pharma market imp
Slide 16: 4. Financial effects
4. Financial effects 16
Slide 17: Transaction Highlights
Transaction Highlights Key terms Cash acquisition a European portfolio for $ 213 million (€ 151 million). Acquisition financed through external bank facilities UK authorities merger clearance required - closing expected within 3 months. Financial effects Increase of sales with sounded profit
Slide 18: Conclusions
Conclusions 18
Slide 19: Conclusions
Conclusions Further step towards Pan European presence 9 Increases weight of International sales in Almirall portfolio 9 consolidating its footprint in the UK market Strengthens position in attractive dermatology franchise 9 Adds sales and marketing power in the UK 9 Tax synergies arising
Slide 20: (& Almirall
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