Pharming Group Nv · EURONEXT:PHARM
Pharming Group Nv — Shareholder Meeting (May 2020)
49 slides from Pharming Group Nv's shareholder meeting presentation, May 20, 2020
Slide 1: Agenda
Agenda 1. Opening and announcements 2. Annual Report 2019 a) Explanation of the business, the operations and the results for the year ending on 31 December 2019 (discussion item) b) Remuneration report for 2019 (advisory voting item) c) Corporate Governance (discussion item) d) Explanation of the di
Slide 2: Pharming Group NV Annual General Meeting 2020
Pharming Group NV Annual General Meeting 2020 20 May 2020
Slide 3: Agenda
Agenda 1. Opening and announcements 2. Annual Report 2019 a) Explanation of the business, the operations and the results for the year ending on 31 December 2019 (discussion item) b) Remuneration report for 2019 (advisory voting item) c) Corporate Governance (discussion item) d) Explanation of the di
Slide 4: Agenda
Agenda 1. Opening and announcements 2. Annual Report 2019 a) Explanation of the business, the operations and the results for the year ending on 31 December 2019 (discussion item) b) Remuneration report for 2019 (advisory voting item) c) Corporate Governance (discussion item) d) Explanation of the di
Slide 5: Annual Report 2019
Pharming Group NV Annual Report 2019 Sijmen de Vries Chief Executive Officer Bruno Giannetti Chief Medical Officer Robin Wright Chief Financial Officer Annual General Meeting Leiden, 20 May 2020
Slide 6: Safe harbour statement
Safe harbour statement The information contained in this document and communicated verbally to you (together the "Presentation") is being supplied to you solely for your information and may not be copied, reproduced or further distributed to any person or published, in whole or in part, for any purp
Slide 7: Company Overview
Company Overview • Public Company: Euronext: PHARM • Located: the Netherlands, ~230 employees globally • Current Focus: Rare and Ultra-rare disease development and commercialisation, plus large indications for lead product • Marketed product: RUCONEST® • Recombinant human C1-esterase inhibitor (enzy
Slide 8: 2019 Highlights
2019 Highlights Financial • Delivered revenue for the full year of €169.0 million (US$189.3 million) – an increase of 25% on 2018 • Full year net profits were €36.2 million ($40.5 million), an increase of 45% on 2018 • 2019 sales growth triggered the second $20 million milestone payment to Bausch He
Slide 9: YTD 2020 Highlights
YTD 2020 Highlights Financial • Delivered revenues of €49.3 million, an increase of 40% on Q1 2019 • Operating profit of €19.4 million, an increase of 59% on Q1 2019 • Despite significant one- off financial expenses of €3.7 million from full pay-off of loan, net profits increased by 25% to €8.4 mill
Slide 10: Corporate Social Responsibility
Corporate Social Responsibility The main areas of focus for the Company in the areas of sustainable corporate social responsibility are: • Patient safety while providing treatment for unmet medical needs “Our team consists of • Our code of conduct for all dealings, motivated and highly- internal and
Slide 11: Risk Assessment, Management and Control
Risk Assessment, Management and Control The Company conducts regular periodic risk assessments and reviews, revealing the following main types of risk: Strategic Risks Operational Risks • Commercial risk • CMC/pre-clinical R&D risk • Clinical R&D risk • Macro-economic risks • Regulatory Procedure ri
Slide 12: Business Model
Business Model Profitability currently driven by: • Proceeds of own sales of RUCONEST® in the US, EU and the Rest of the World (RoW) • Fixed supply price to partners Cytobioteck, Hyupjin, Megapharm and Swedish Orphan Biovitrum AB (publ) (SOBI) up until December 2019 when the European licensing agree
Slide 13: Business Model/ Sources for future sales growth
Business Model/ Sources for future sales growth Pharming Group Cattle Additional Ruconest rhC1INH PRT for Other Additional HAE PRT for New Pompe/ programs Rare/Orphan HAE indications Fabry PRT Projects More convenient Leniolisib versions of Pre- eclampsia (PI3Kδ) RUCONEST® Acute Kidney Injury COVID-
Slide 14: Business Model: Competition in HAE
Business Model Competition in HAE: • Intense, with embedded and new competitors • Long development cycles, high hurdles for entry • Very complicated biology of onset and progress of illness and attacks • Pharming has the only recombinant human version of the missing protein, but not the most conveni
Slide 15: Business Model: Competition in new indications
Business Model Competition in new indications for C1 esterase inhibitor: • Very limited competition as there are currently few if any therapy options, and none approved • Most of these indications are either fatal or result in chronic intensive or palliative care, in some cases for more than one pat
Slide 16: Business Model: Leveraging commercial infrastructure
Business Model Leveraging commercial infrastructure: In-licensing of new late-stage product leniolisib for the treatment of APDS from Novartis • Activated PI3 kinase delta syndrome (APDS) is a primary immunodeficiency caused by autosomal dominant mutations • Increased activity of phosphoinositide-3-
Slide 17: Business Model: Competition in Pompe and Fabry
Business Model Competition in new Programs for Pompe and Fabry • All current therapies have issues with immunogenicity, and carry boxed warnings • Patients in these indications become regularly refractory on current therapies (i.e. decreasing efficacy by antibody formation) • If our new protein is p
Slide 18: Financial Information and Outlook 2020
Financial Information and Outlook 2020 18
Slide 19: Financial Summary 2019
Financial Summary 2019 *Includes the effects of the €125 million convertible bond issue, the repayment of the Orbimed loan facility in January 2020 and the milestone payment to Bausch Health.
Slide 20: Revenues by Quarter
Revenues by Quarter € million 60 50 40 30 20 10 0 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2018 Q1 2018 Q2 2018 Q3 2018 Q4 2019 Q1 2019 Q2 2019 Q3 2019 Q4 2020 Q1 20
Slide 21: Gross Profit by Quarter
Gross Profit by Quarter € million 50 45 40 35 30 25 20 15 10 5 0 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2018 Q1 2018 Q2 2018 Q3 2018 Q4 2019 Q1 2019 Q2 2019 Q3 2019 Q4 2020 Q1 21
Slide 22: Operating Result by Quarter
Operating Result by Quarter € million 25 20 15 10 5 0 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2018 Q1 2018 Q2 2018 Q3 2018 Q4 2019 Q1 2019 Q2 2019 Q3 2019 Q4 2020 Q1 22
Slide 23: Net Result by Quarter
Net Result by Quarter € million 20 15 10 5 0 -5 -10 -15 -20 -25 -30 -35 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2018 Q1 2018 Q2 2018 Q3 2018 Q4 2019 Q1 2019 Q2 2019 Q3 2019 Q4 2020 Q1 23
Slide 24: COVID-19 Impact
COVID-19 Impact Pharming is complying with international guidance and requirements across its operations to prioritise the health and safety of its employees. The current impact of COVID-19 on the business is summarised below. • No impact on (up-scaling of) production of RUCONEST®. The Company’s new
Slide 25: Outlook for 2020
Outlook for 2020 • Continued growth in revenues from sales of RUCONEST®, mainly driven by the US and expanded European operations. • Maintenance of positive net earnings during the year. • Continued investment in the expansion of production of RUCONEST® in order to ensure continuity of supply to the
Slide 26: Outlook for 2020
Outlook for 2020 • Investment in other new development opportunities and assets as these occur. • Increasing marketing activity where this can be profit-enhancing for Pharming. • Supporting all our teams and marketing partners in order to enable the maximisation of the potential of RUCONEST® for pat
Slide 27: Agenda
Agenda 1. Opening and announcements 2. Annual Report 2019 a) Explanation of the business, the operations and the results for the year ending on 31 December 2019 (discussion item) b) Remuneration report for 2019 (advisory voting item) c) Corporate Governance (discussion item) d) Explanation of the di
Slide 28: 2. b) Remuneration Report 2019
2. b) Remuneration Report 2019 • Remuneration report aligned with EU Shareholder Rights Directive as transposed into Dutch law: • overview implementation policy for the financial year 2019 • outline objectives and principles Pharming’s remuneration structure: designed to ensure that the company rema
Slide 29: 2. b) Advisory voting: Remuneration Policy
2. b) Advisory voting: Remuneration Policy 29
Slide 30: Agenda
Agenda 1. Opening and announcements 2. Annual Report 2019 a) Explanation of the business, the operations and the results for the year ending on 31 December 2019 (discussion item) b) Remuneration report for 2019 (advisory voting item) c) Corporate Governance (discussion item) d) Explanation of the di
Slide 31: Dutch Corporate Governance Code
Dutch Corporate Governance Code • Pharming removed deviation as Board of Management is not permitted to exercise share options within 3 years of grant (3.1.2 vii) • Remaining deviations: • 1.3-1.7 (Internal auditor) • 2.7.2 (Regulations governing ownership of and transactions in other shares by the
Slide 32: Agenda
Agenda 1. Opening and announcements 2. Annual Report 2019 a) Explanation of the business, the operations and the results for the year ending on 31 December 2019 (discussion item) b) Remuneration report for 2019 (advisory voting item) c) Corporate Governance (discussion item) d) Explanation of the di
Slide 33: 2. d) Explanation of the dividend policy
2. d) Explanation of the dividend policy The Board of Management, with the approval of the Board of Supervisory Directors, will transfer the net profit for the year of 2019 to the accumulated deficit. 33
Slide 34: Agenda
Agenda 1. Opening and announcements 2. Annual Report 2019 a) Explanation of the business, the operations and the results for the year ending on 31 December 2019 (discussion item) b) Remuneration report for 2019 (advisory voting item) c) Corporate Governance (discussion item) d) Explanation of the di
Slide 35: Overview of the Deloitte audit
Overview of the Deloitte audit COMMUNICATION - Several meetings and calls with Supervisory Board / Audit Committee FINANCIAL STATEMENTS - Audit plan, management letter AND MANAGEMENT REPORT and year-end report - Unqualified auditor’s report including emphasis of the impact of COVID-19 virus MATERIAL
Slide 36: 2. e) Proposal to adopt the Financial Statements
2. e) Proposal to adopt the Financial Statements 36
Slide 37: 2. f) Proposal to discharge the Board of Management
2. f) Proposal to discharge the members of the Board of Management for their responsibilities 37
Slide 38: 2. g) Proposal to discharge the Supervisory Directors
2. g) Proposal to discharge the members of the Board of Supervisory Directors for their responsibilities 38
Slide 39: Agenda
Agenda 1. Opening and announcements 2. Annual Report 2019 a) Explanation of the business, the operations and the results for the year ending on 31 December 2019 (discussion item) b) Remuneration report for 2019 (advisory voting item) c) Corporate Governance (discussion item) d) Explanation of the di
Slide 40: 4. Proposal to amend the Articles of Association
4. Proposal to amend the Articles of Association (i) increase the authorised capital by 10% to eight million eight hundred thousand Euros (€8,800,000 or 880,000,000 shares) to facilitate the further growth of the Company and (ii) (ii) to implement the requirements imposed by the revised European Uni
Slide 41: Agenda
Agenda 1. Opening and announcements 2. Annual Report 2019 a) Explanation of the business, the operations and the results for the year ending on 31 December 2019 (discussion item) b) Remuneration report for 2019 (advisory voting item) c) Corporate Governance (discussion item) d) Explanation of the di
Slide 42: 5. Appointment of the external auditor of the Company
5. Appointment of the external auditor of the Company Proposal to appoint Deloitte Accountants B.V. as the external auditor of the Company for the financial year 2020. (voting item) 42
Slide 43: Agenda
Agenda 1. Opening and announcements 2. Annual Report 2019 a) Explanation of the business, the operations and the results for the year ending on 31 December 2019 (discussion item) b) Remuneration report for 2019 (advisory voting item) c) Corporate Governance (discussion item) d) Explanation of the di
Slide 44: 6. Designation of the Board of Management
6. Designation of the Board of Management as the Company’s body: Proposal to authorise the Board of Management for a period starting on 20 May 2020 and ending on 20 July 2021 as the body which is authorised, with the approval of the Board of Supervisory Directors, to (i) issue shares, (ii) grant rig
Slide 45: Agenda
Agenda 1. Opening and announcements 2. Annual Report 2019 a) Explanation of the business, the operations and the results for the year ending on 31 December 2019 (discussion item) b) Remuneration report for 2019 (advisory voting item) c) Corporate Governance (discussion item) d) Explanation of the di
Slide 46: 7. Authorization of the Board of Management to repurchase shares
7. Authorization of the Board of Management to repurchase shares in the Company Proposal to authorise the Board of Management for a period starting on 20 May 2020 and ending on 20 July 2021 as the body which is authorised, with the approval of the Board of Supervisory Directors, to repurchase not mo
Slide 47: Agenda
Agenda 1. Opening and announcements 2. Annual Report 2019 a) Explanation of the business, the operations and the results for the year ending on 31 December 2019 (discussion item) b) Remuneration report for 2019 (advisory voting item) c) Corporate Governance (discussion item) d) Explanation of the di
Slide 48: Agenda
Agenda 1. Opening and announcements 2. Annual Report 2019 a) Explanation of the business, the operations and the results for the year ending on 31 December 2019 (discussion item) b) Remuneration report for 2019 (advisory voting item) c) Corporate Governance (discussion item) d) Explanation of the di
Slide 49: www.pharming.com
www.pharming.com info@pharming.com Tickers: ENXTAM: PHARM Bloomberg: PHAR.AS