Slide 1: Orion Interim Report January–September 2014
Orion Interim Report January─September 2014 21 October 2014 Timo Lappalainen President & CEO
Slide 2: Forward-looking statements
This presentation contains forward-looking statements which involve risks and uncertainty factors. These statements are not based on historical facts but relate to the Company’s future activities and performance. They include statements about future strategies and anticipated benefits of these strat
Slide 3: Advances in pharmaceutical development projects
Advances in pharmaceutical development projects • Net sales and operating profit include significant milestone payments received from collaboration partners that were higher than in previous year • Good growth in Specialty Products sales • First generic competitors to Precedex entered US markets • R
Slide 4: Net sales and operating profit
Net sales and operating profit Basic earnings per Laimentamaton Cash flow perrahavirta share Net sales, Operating profit, Osakekohtainen EUR million EUR million osakekohtainen tulos, € share, EUR before financial ennen items, rahoituseriä, € EUR 734 760 217 202 1.21 1.07 1.34 0.56 Q1-Q3/2013 Q1-Q3/2
Slide 5: Breakdown of net sales
Breakdown of net sales Group’s net sales in Q1─Q3/2014 were EUR 760 million By business division By market area 5% 4% 13% 6% 28% 7% 37% 11% 13% 41% 35% Proprietary Products Specialty Products Animal Health Finland Scandinavia Fermion Other Europe North America Contract manufacturing & other Orion Di
Slide 6: Business Reviews
Business Reviews
Slide 7: Pharmaceuticals business
Pharmaceuticals business Q1─Q3/2013 Q1─Q3/2014 Net sales split 693 721 Q1─Q3/ Q1─Q3/ 2014 2013 Change % Proprietary Products 285 285 -0% Specialty Products 310 279 +11% Animal Health 50 53 -5% 219 Fermion 46 46 -1% 205 Contract manufacturing & other 29 31 -5% • Net sales of branded Parkinson’s drugs
Slide 8: Best-selling pharmaceuticals Q1–Q3/2014
Best-selling pharmaceuticals Q1─Q3/2014 2013 Net sales, EUR million Stalevo®, Comtess® & Comtan® (Parkinson’s disease) -17% 130 207 Simdax® (acute decompensated heart failure) +5% 35 46 Precedex® (intensive care sedative) -39% 25 59 dexdor® (intensive care sedative) +37% 25 25 Easyhaler® product fam
Slide 9: Orion clear market leader in Finland
Orion clear market leader in Finland Finnish human pharmaceuticals Finland’s biggest pharmaceutical market in January─September 2014 companies in Q1─Q3/2014 EUR million • Wholesale EUR 1,581 million (+4%) 200 183 180 Orion in Finnish human 160 pharmaceuticals market 140 • Sales growth +6% 120 110 10
Slide 10: Review of Parkinson's drugs markets
Review of Parkinson’s drugs markets Overall markets for Parkinson’s drugs MAT6/2014 Market shares of Orion’s MAT6 MAT6 • United States 3) USD 805 million (+9%) branded Parkinson’s drugs 2014 2013 • Five largest European markets 1) 3) Finland 2) 22% 23% EUR 995 million (+3%) Sweden 2) 14% 15% • Japan
Slide 11: Precedex and dexdor intensive care sedatives
Precedex® and dexdor® intensive care sedatives European sedative market MAT6/2014 Breakdown of Precedex USD million Total market value EUR 485 million (+2.4%) markets 450 400 5% 12% 350 +7% 64 300 60 15% 250 68% 200 +19% 332 150 279 100 50 Propofol EUR 327 million (+4%) 0 Midazolam EUR 74 million (-
Slide 12: Key clinical pharmaceutical development projects
Key clinical pharmaceutical development projects Project Indication PHASE Registration Bufomix Easyhaler® (budesonide-formoterol) 1) Asthma, COPD I II III Easyhaler® salmeterol-fluticasone Asthma, COPD I II III ODM-201 (androgen receptor inhibitor) 2) Prostate cancer I II III Low Cardiac Output Levo
Slide 13: Diagnostics business
Diagnostics business Q1─Q3/2013 Q1─Q3/2014 • Decrease in net sales mainly 43 42 due to ending of sales of products discontinued in 2013 • Comparative period operating profit included 3.9 4.9 costs related to contraction of product portfolio, Turku Net sales, EUR Operating profit, manufacturing plant
Slide 14: Outlook for 2014 (unchanged)
Outlook for 2014 (unchanged) Net sales will be at similar level to 2013 (net sales in Net sales 2013 were EUR 1,007 million) Operating profit will be at similar level to 2013 Operating profit (operating profit in 2013 was EUR 268 million) Group’s capital expenditure will be about EUR 60 million Grou
Slide 15: Orion Calendar 2015
Orion Calendar 2015 Financial Statement Release for 2014 4 February 2015 Annual General Meeting 2015 24 March 2015 planned to be held on Interim Report January─March 2015 29 April 2015 Interim Report January─June 2015 28 July 2015 Interim Report January─September 2015 27 October 2015 The Financial S
Slide 16: Orion – Building well-being
GRION Building well-being
Slide 17: Orion's financial objectives
Orion’s financial objectives Orion’s financial objectives are: • Ensuring financial stability • Profitable growth The objectives are achieved through: • Increasing net sales. Achievement of this objective requires continuous investment in development of the product portfolio. • Maintaining profitabi
Slide 18: Key figures by quarter
Key figures by quarter EUR million Net sales EUR million Operating profit 1,200 300 1,000 250 60 59 53 66 254 273 800 236 Q4 200 65 Q4 215 76 64 71 67 600 246 237 238 Q3 150 Q3 211 213 65 Q2 65 86 Q2 400 100 60 61 227 233 248 277 207 Q1 Q1 200 50 93 71 79 74 67 215 244 247 249 245 0 0 10 11 12 13 14
Slide 19: Key figures for 2010–Q3/2014
Key figures for 2010─Q3/2014 Orion’s key figures 2010 2011 2012 2013 Q1─Q3/2014 Q1─Q3/2013 Change % Net sales, EUR million 849.9 917.9 980.4 1,006.9 760.0 734.3 +3.5% Operating profit, EUR million 254.2 282.9 278.3 267.7 217.2 201.8 +7.6% Profit before taxes, EUR million 252.6 282.0 276.6 264.0 214.
Slide 20: Income Statement 2010–Q3/2014
Income Statement 2010─Q3/2014 Formation of profits, EUR million 2010 2011 2012 2013 Q1─Q3/2014 Q1─Q3/2013 Change % Net sales 849.9 917.9 980.4 1,006.9 760.0 734.3 +3.5% Cost of goods sold -283.2 -305.1 -350.8 -393.5 -295.5 -286.9 +3.0% Gross profit 566.8 612.8 629.6 613.4 464.5 447.4 +3.8% Other ope
Slide 21: Product protection situation of key products
Product protection situation of key products Key patents or data protection expire Molecule Product Indication Europe USA Japan Stalevo®, November 2012 January Entacapone Parkinson’s disease October 2013 Comtess® and Comtan® October 2013 1) 2015 2) Acute Levosimendan Simdax® decompensated September
Slide 22: Dividend distribution policy
Dividend distribution policy Orion’s dividend distribution takes into account distributable funds and capital expenditure and other financial requirements in medium and long term to achieve the financial objectives. Dividend distribution history EUR 1.60 100% 0.12 EUR 1.40 0.06 95% EUR 1.20 0.10 90%
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