Ucb S.a. · EURONEXT:UCB
Ucb — H1 2019 Earnings Presentation
50 slides from Ucb's earnings presentation, Jul 25, 2019
Slide 1: UCB's strong performance enables continued investment into future growth drivers
UCB’s strong performance enables continued investment into future growth drivers 2019 Half Year Results 25 July 2019
Slide 2: Disclaimer and safe harbor
2 Disclaimer and safe harbor Forward-looking statements This presentation contains forward-looking statements, including, without limitation, statements containing the words “believes”, “anticipates”, “expects”, “intends”, “plans”, “seeks”, “estimates”, “may”, “will”, and “continue” and similar expr
Slide 3: 2019 HY information flow
3 2019 HY information flow ןUCB is progressing on its strategic growth path • Jean-Christophe Tellier, CEO ןDifferentiation impacts patient value • Emmanuel Caeymaex, Patient Value Unit Head - Immunology ןStrong product growth and investment into future growth • Detlef Thielgen, CFO ןCon
Slide 4: UCB is progressing on its strategic growth path
UCB is progressing on its strategic growth path Jean-Christophe Tellier, CEO 25 July 2019
Slide 5: UCB is progressing on its strategic growth path
5 UCB is progressing on its strategic growth path HY 2019 achievements Maximize number of lives we can impact positively Double digit growth for Cimzia® & Vimpat® Breakthrough & Lead Bring differentiated drugs faster to patients 2022 Evenity® approval (U.S., Japan, South Korea, Canada, Australia) Ci
Slide 6: 6 potential product launches in the next 5 years
6 6 potential product launches in the next 5 years Higher R&D investments into UCB's rich pipeline Approved & launched in Japan & U.S. Evenity® • post fracture osteoporosis Approved in South Korea, Canada & Australia • acute repetitive epilepsy Approved in the U.S. Nayzilam® seizures launch in H2 20
Slide 7: Differentiation impact patient value
7 Differentiation impact patient value Emmanuel Caeymaex, Executive Vice President Head of Immunology Patient Value Unit
Slide 8: Sustainable Cimzia growth through new patient populations & differentiated value proposition
8 Sustainable Cimzia® growth through new patient populations & differentiated value proposition Net sales per region Net sales per indication PsO 3% CD 11% EU U.S. 27% +8% CER PFS HY 2019 net sales 34% PsA € 782 million 20% RA Int'l 53% Markets +15%; +10% CER +32% 12% U.S. CER LYO axSpA 27% U.S. 13%
Slide 9: Evolving understanding of overlapping disease highlights bimekizumab relevance
9 Evolving understanding of overlapping disease highlights bimekizumab relevance Psoriatic diseases Psoriatic Spondyloarthritis arthritis ~30% patients living with ~40% patients living with ~1 % of population psoriasis progress to psoriatic arthritis have psoriatic arthritis Psoriasis axial disease
Slide 10: Focusing on markets with strong growth potential
10 Focusing on markets with strong growth potential Psoriasis Psoriatic arthritis Axial Spondyloarthritis $ 23 billion EU5 4 $ 13 billion EU5 2 U.S. $ 8 billion $ 6 billion $ 5 billion $ 4 billion 19 U.S. EU5 EU5 EU5 EU5 2 1 1 11 U.S. 1 U.S. U.S. U.S. 4 6 3 5 2017 2027 2017 2027 2017 2027 8% 9% 8% 3
Slide 11: Strong product growth & investment into future growth
Strong product growth & investment into future growth Detlef Thielgen, CFO
Slide 12: 2019 HY financial highlights
12 2019 HY financial highlights Strong product growth and investment into future growth Actual CER Revenue € 2 323 million +2% +4% • Net sales up by 3% (+2% CER) to € 2.2 billion driven by core products, impacted by hedging and divestitures Total operating expenses € 1 154 million +11% +8% • Marketi
Slide 13: Strong underlying net sales growth
13 Strong underlying net sales growth Strong performance of UCB's blockbusters: Cimzia® and Vimpat® Act (CER) Cimzia® € 782 million +15% (+10%) Driven by new patient populations Vimpat® € 622 million +19% (+13%) Strong, sustainable growth in all markets Keppra® € 371 million -5% (-8%) 2019 HY net sa
Slide 14: 2019 and mid-term guidance
14 2019 and mid-term guidance Confirmed 2019 financial targets Mid-term guidance Revenue € 4.6 - 4.7 billion rEBITDA / revenue ratio of 31% in 2021 • Continued strong core product growth UCB investing into the pipeline complemented with inorganic growth opportunities rEBITDA 27 – 29% of revenue Peak
Slide 15: 6 potential product launches in 5 years
15 6 potential product launches in 5 years Creating value for patients living with post fracture osteoporosis acute repetitive epilepsy seizures psoriasis, psoriatic arthritis, axial spondyloarthritis ITP, MG, CIDP drug-resistant epilepsy progressive supranuclear palsy ITP: Immune ThrombocytoPenia M
Slide 16: Thank you for your attention
Thank you for your attention Your questions, please
Slide 17: Further facts and figures
Further facts and figures Fn) spired by patients. &_ 4 Driven by science.
Slide 18: UCB Story – since 1928
18 UCB Story – since 1928 Continuous adaptation to the changing ecosystem 1928 2004 Focus on biopharmaceuticals, a combination of large, antibody based • Evenity® (U.S., Japan & molecules and small, chemically-derived molecules more) Acquisition of Celltech Group Ltd, a leading British biotechnology
Slide 19: UCB's patient value strategy
19 UCB's patient value strategy We are UCB Sustainable company growth - Superior We are 7 495 employees focused shareholder value on creating value for patients Our ambition is to be the We bring Cimzia®, Vimpat®, patient preferred biopharma Keppra®, Briviact® & Neupro® leader, creating patient valu
Slide 20: Grow core products
20 Grow core products Key information Cimzia® Vimpat® Keppra® Briviact® Neupro® • Crohn’s disease Epilepsy POS • Epilepsy POS Epilepsy POS • Parkinson’s • Rheumatoid arthritis • Adj. therapy • Epilepsy PGTCS • Adj. therapy disease • Psoriatic arthritis • Monotherapy • Epilepsy myoclonic • Monotherap
Slide 21: Grow core products: lifecycle management
21 Grow core products Lifecycle management Cimzia® Vimpat® Keppra® Briviact® Neupro® • Nr axSpA • Epilepsy POS pediatric (U.S. – March) (incl. dry syrup formulation - • Rheumatoid arthritis Japan - Jan) (China - July) • PsO / PsA: filing • Epilepsy POS (China): • Epilepsy (Japan – Jan) o pediatric (
Slide 22: Cimzia
22 Cimzia® Driven by new patient populations: women of child bearing age and people living with psoriasis Net sales1 € million 2019 HY 2018 HY Act CER For patients (including women of child bearing age) living with U.S. 480 416 15% 8% • Rheumatoid arthritis Europe 208 192 8% 8% • Psoriatic arthritis
Slide 23: Cimzia in-market performance
23 Cimzia® in-market performance U.S. Europe Japan Cimzia® vs. Rheumatology Cimzia® vs. Rheumatology Cimzia® vs. RA Market Market Growth 1 Market Growth 1 Growth 1 10% 10% 10% 8.0% 8% 8% 8% 6.4% 6% 5.6% 6% 4.9% 6% +3.0% 5.0% 4% 4% 4% 2.7% +6.6% -1.5% 2% 2% 2% 0.8% -0.3% 0% -1.0% 0% 0% -2% Anti TNF B
Slide 24: Vimpat
24 Vimpat® Strong, sustainable growth in all markets Net sales1 € million 2019 HY 2018 HY Act CER For patients living with U.S. 472 387 22% 14% • Epilepsy – POS2 • Adults, adolescents and Europe 111 100 11% 11% children from 4 years of International markets 39 35 10% 6% age (EU, U.S. & Japan) Total
Slide 25: Vimpat in-market performance
25 Vimpat® in-market performance U.S. Europe Japan 95% Vimpat® vs. AED Market Growth (TDx) Vimpat® vs. AED Market Growth (TRx) Vimpat® vs. AED Market Growth (TDx) 91.0% 20% 20% 90% 16.6% 15% 15% +7.5% 85% 8.7% 10% 10% +87% 10% +18.0% 5% 5% 5% 4.0% -1.4% 1.2% 0% 0% 0% AED Market Vimpat® AED Market Vi
Slide 26: Keppra
26 Keppra® Mature, established brand Net sales1 € million 2019 HY 2018 HY Act CER For patients living with U.S. 103 99 4% -3% • Epilepsy – POS • Epilepsy – PGTCS Europe 84 113 -26% -26% • Epilepsy myoclonic International markets 184 180 2% 1% seizures Total Keppra® 371 392 -5% -8% 2019 2020 Epilep
Slide 27: Keppra in-market performance
27 Keppra® in-market performance U.S. Europe Japan Keppra® vs. AED Market Growth (TRx) Keppra® vs. AED Market Growth (TDx) Keppra® vs. AED Market Growth (TDx) 5% 5% 25% 1.2% 20% 18.7% 0% 0% 15% -5% -11.5% -5% -1.4% +14.7% -3.9% 10% -10% -10% -2.5% 4.0% 5% -10.3% -15% -15% 0% AED Market Keppra® AED M
Slide 28: Briviact
28 Briviact® Available to more and more patients Net sales1 € million 2019 HY 2018 HY Act CER For patients living with • Epilepsy – POS2 U.S. 81 46 76% 65% • Adults, adolescents and children from 4 years of Europe 19 13 55% 55% age (EU & U.S.) International markets 3 1 > 100% > 100% ® Total Briviact
Slide 29: Briviact in-market performance
29 Briviact® in-market performance A new therapeutic option in the AED market U.S. Europe Briviact® – R3M TDx Share Briviact® – R3M TRx Share 1.00% 1.00% 1.00% 0.80% 0.80% +0.4% 0.60% 0.60% 0.37% 0.40% 0.40% 0.20% 0.20% +0.1% 0.00% 0.00% May-18 Aug-18 Nov-18 Feb-19 May-19 May-18 Aug-18 Nov-18 Feb-19
Slide 30: Neupro
30 Neupro® At its peak sales and with longer patent live Net sales1 € million 2019 HY 2018 HY Act CER For people living with U.S. 46 41 13% 5% • Parkinson’s disease Europe 83 85 -3% -3% • Restless legs syndrome International markets 29 22 36% 31% Total Neupro® 158 148 7% 4% 2021 2024 2030 • Patent e
Slide 31: Neupro in-market performance
31 Neupro® in-market performance U.S. Europe Japan Neupro® PD vs. PD (KC) Neupro® vs. (KC) Neupro® PD vs. PD (KC) 20% Market Growth (TRx) 20% Market Growth (TDx) 20% Market Growth (TDx) 16.3% 15% 15% 15% 10% +1.2% -0.9% 10% 10% 5% +16.4% 0.2% 5% 2.4% 1.1% 2.3% 5% 0% 0.8% -5% 0% 0% PD Market PD key N
Slide 32: Translating scientific hypotheses into clinical development
32 Translating scientific hypotheses into clinical development Available to Phase 1 Phase 2 Phase 3 Filing patients Evenity® (romosozumab) post fracture osteoporosis Partner: Amgen Japan & U.S. Nayzilam® (midazolam nasal spray) acute repetitive seizures Approval (U.S.) bimekizumab (IL17A/F) psoriasi
Slide 33: Bimekizumab Phase 3 development program in psoriasis
33 Bimekizumab Phase 3 development program in psoriasis 3 trials against active comparators designed to demonstrate superiority Phase 3 Phase 3 Phase 3 Phase 3b BE VIVID / PS0009 BE SURE / PS0008 BE READY / PS0013 BE RADIANT / PS0015 NCT03370133 NCT03412747 NCT03410992 NCT03536884 • 560 patients liv
Slide 34: Padsevonil Phase 2 program in drug-resistant focal epilepsy
34 Padsevonil Phase 2 program in drug-resistant focal epilepsy Patients with high unmet medical need Phase 2a Phase 2b Phase 3 EP0069 / NCT02495844 ARISE / EP0091 / NCT03373383 DUET / EP0092 / NCT03739840 • 55 patients with highly drug- • 400 patients with drug-resistant • 500 patients with drug-res
Slide 35: Rozanolixizumab potential in multiple IgG autoantibody-mediated diseases
35 Rozanolixizumab potential in multiple IgG autoantibody- mediated diseases with high unmet medical need Myasthenia gravis Immune thrombocytopenia Chronic inflammatory demyelinating polyneuropathy Antibodies target components of Antibodies target platelets and Antibodies target components of neurom
Slide 36: Rozanolixizumab, novel targeted approach recycling IgG
36 Rozanolixizumab, novel targeted approach recycling IgG Transforming disease control and ecosystem burden blocks FcRn receptors binding Proof of Confirmatory plasma IgG concept phase resulting in the attenuation of IgG recycling, and thus removal of IgG autoantibodies myasthenia gravis (MG) Topl
Slide 37: Rozanolixizumab SubQ treatment for IgG-mediated diseases
37 Rozanolixizumab SubQ treatment for IgG-mediated diseases Proof of concept established in MG & ITP Moving to confirmatory phase CIDP Myasthenia gravis Immune thrombocytopenia (NCT03861481) (NCT03971422) 240 patients with moderate to severe MG 34 patients with Chronic Inflammatory Demyelinating • d
Slide 38: Phase 1 - UCB0107, an anti-Tau antibody for PSP & Alzheimer's disease
38 Phase 1 - UCB0107, an anti-Tau antibody for Progressive Supranuclear Palsy & Alzheimer’s disease Key facts Key insights UCB0107 blocks tau uptake and aggregation UCB0107 was generated Tau seeds spread from dying cells to block spreading of tau to infect other neurons • Tau misfolding and aggregat
Slide 39: Recurring EBITDA
39 Recurring EBITDA Numbers may not add due to rounding EBIT: Earnings before interest and taxes CER: constant exchange rate EBITDA: Earning before interests, taxes, depreciation and amortization charges
Slide 40: Profit
40 Profit Numbers may not add due to rounding CER: constant exchange rate EBIT: Earnings before interest and taxes
Slide 41: Core earnings per share
41 Core earnings per share Numbers may not add due to rounding CER: constant exchange rate
Slide 42: Key product net sales performance
42 Key product net sales performance Numbers may not add due to rounding CER: constant exchange rate
Slide 43: Strong Cash Flows
43 Strong Cash Flows Cash flow from continuing operations Net debt € million € million CAGR: composite annual growth rate
Slide 44: Debt maturity schedule (@ 30 June 2019)
44 Debt maturity schedule (@ 30 June 2019)
Slide 45: One UCB today: A global player
45 One UCB today: A global player Presence in 38 countries complemented by a robust network of partners 50/50 Women / Men 7 498 564 UCB employees worldwide New colleagues Situation at 30 June 2019
Slide 46: Green strategy @ UCB
46 Green strategy @ UCB UCB environmental commitments by 2030 CO2 emissions -35% Water consumption -20% Waste production -25% More information on https://www.ucb.com/our-company/green-strategy
Slide 47: Corporate governance: Board of Directors
47 Corporate governance Board of Directors • 13 members • Mandate: 4 year • Age limit: 70 • 5 women (38%) • 7 independent directors (54%) • 5 nationalities ● Women ● Men ● Belgium ● France ● U.K. ● U.S. ● Denmark / Sweden Status post 2019 AGM
Slide 48: Corporate governance: Executive Committee
48 Corporate governance Executive Committee • 12 members • JC Tellier CEO since 2015 • 2 women (17%) • 6 nationalities ● Women ● Men ● Belgium ● France ● Germany ● Netherlands ● U.K. / South Africa ● U.S. Status at 30 June 2019
Slide 49: Stable shareholder base with free-float of 62%
49 Stable shareholder base with free-float of 62% Weighted average shares outstanding in 2019: 187 million “Free float” by region Source: Latest notifications, FactSet and UCB underlying ownership analysis (October 2018)
Slide 50: UCB Investor Relations team
50 UCB Investor Relations team • Antje Witte Check out our IR App & Vice President Investor Relations stay tuned to UCB wherever you go! Phone: +32 2 559 9414 E-mail: antje.witte@ucb.com • Isabelle Ghellynck Associate Director Investor Relations Phone: +32 2 559 9588 E-mail: isabelle.ghellynck@ucb.c