Medivir Ab · OMXSTO:MVIR
Medivir Ab — Carnegie 23 October 2014
33 slides from Medivir Ab's conference presentation, Oct 16, 2014
Slide 1: A Focused Strategy for Sustainable Value Creation
A Focused Strategy for Sustainable Value Creation Presentation at Carnegie 23 October 2014 Niklas Prager, CEO Rein Piir, EVP Corporate Affairs & IR October 16, 2014 A Nordic research-based pharmaceutical company focused on infectious diseases and oncology
Slide 2: Agenda
Agenda A focused strategy for sustainable value creation Balance sheet optimization overview Information going forward (News flow, milestones and events) Questions & answers 2
Slide 3: Medivir is a Nordic research-based pharma company focused on infectious diseases and oncology
COMPANY OVERVIEW Medivir is a Nordic research-based pharma company focused on infectious diseases and oncology Balanced platform consisting of four cornerstones Innovation High risk / high reward • Unrivaled expertise in protease inhibitor design and nucleoside/ nucleotide science with focus on infe
Slide 4: Objectives
OBJECTIVES Secure current and future value creation through profitable growth Deliver sustainable value creation Through world-class R&D productivity, increased commercial focus and operational excellence Strengthen R&D pipeline without increasing costs • Focus on areas of expertise: infectious dise
Slide 5: Proven ability to create value through R&D efforts, Nordic commercial operation
BUSINESS MODEL Proven ability to create value through R&D efforts, Nordic commercial operation Innovation Royalties & Milestones • Balance risk/reward through partnerships at costly stages of Increasing revenue and drug development and global earnings with long term commercialization stability throu
Slide 6: Established brands enhance stability and strength of Nordic commercial operations
BUSINESS MODEL Established brands enhance stability and strength of Nordic commercial operations Established Brands Nordic Brands • Opportunity to further improve Stable revenue stream margins for broad range of well- and economies of scale Nordic Commercial known brands with stable and scope with I
Slide 7: A focused strategy for value creation based on the four cornerstones
STRATEGY A focused strategy for value creation based on the four cornerstones Innovation Established Brands Cornerstones Strategy I. Project generation and development in R&D • Cutting edge competence in protease inhibitor design and nucleoside/nucleotide science with distinct discovery focus on inf
Slide 8: Research and Development
Research and Development World class science working toward next breakthroughs 8
Slide 9: Extensive partnering and collaboration track record with major pharma
R&D WORLD CLASS SCIENCE WORKING TOWARD NEXT BREAKTHROUGHS Extensive partnering and collaboration track record with major pharma R&D portfolio Comment Preclinical phase Clinical phase • Strong and diverse Therapeutic area Product / Project Partner Research Development Phase I Phase IIa Phase IIb Phas
Slide 10: Medivir has a strong track record of bringing innovative discoveries to market
R&D WORLD CLASS SCIENCE WORKING TOWARD NEXT BREAKTHROUGHS Medivir has a strong track record of bringing innovative discoveries to market Marketed Products Medivir’s core technology platform: • Protease inhibitor discovery - Xerclear® / Zoviduo® Olysio® (Simeprevir) historically applied to several th
Slide 11: Prioritized Opportunities for future R&D investments
R&D WORLD CLASS SCIENCE WORKING ON NEXT BREAKTHROUGH Prioritized Opportunities for future R&D investments Strategic investments will focus on: 1) Bringing our internal projects to next value inflection point based on robust financial rationale, e.g. – MIV-711 phase IIa proof-of concept in osteoarthr
Slide 12: Innovative Specialty Care Portfolio
Innovative Specialty Care Portfolio Providing a platform for organic growth 12
Slide 13: Growing through continuous addition of innovative specialty care pharmaceuticals
INNOVATIVE SPECIALTY CARE PORTFOLIO PROVIDING A PLATFORM FOR ORGANIC GROWTH Growing through continuous addition of innovative specialty care pharmaceuticals Innovative Specialty Care Portfolio Medivir R&D products Sales (illustrative) In-licensed products Marketed Potential Future Products Products
Slide 14: Specialty focused key account approach makes it possible to be successful in more therapeutic areas
INNOVATIVE SPECIALTY CARE PORTFOLIO PROVIDING A PLATFORM FOR ORGANIC GROWTH Specialty focused key account approach makes it possible to be successful in more therapeutic areas with the current platform Key account approach Focusing on selected key Obtaining reimbursement and hospital clinics through
Slide 15: Fast and successful Nordic Olysio launch provides positive track record
INNOVATIVE SPECIALTY CARE PORTFOLIO PROVIDING A PLATFORM FOR ORGANIC GROWTH Fast and successful Nordic Olysio® launch provides positive track record for future in-licensing opportunities Olysio® (Simeprevir) Nordic Launch Success Factors • Trial/compassionate use experience before launch in all coun
Slide 16: Royalties & Milestones
Royalties & Milestones Proven massive potential 16
Slide 17: Xerclear: Strong payback from innovation
ROYALTIES & MILESTONES PROVEN MASSIVE POTENTIAL Xerclear®: Strong payback from innovation Xerclear® / Zoviduo® Royalties and Milestones • US rights sold to Meda: $45 million • GSK RoW OTC rights: €3 million (€1.4 million remaining) • Royalty agreement on OTC sales: up to 10% • Royalty payments inclu
Slide 18: Simeprevir: Strong payback from innovation
ROYALTIES & MILESTONES PROVEN MASSIVE POTENTIAL Simeprevir: Strong payback from innovation Olysio® (simeprevir) Simeprevir on the global market Japan (SOVRIAD®) EU (OLYSIO®) Canada (GALEXOS®) Mexico (OLYSIO®) USA (OLYSIO®) Australia (OLYSIO®) Russia (SOVRIAD®) Royalties and Milestones
Slide 19: Simeprevir: Continued strong market performance and clear dedication to disease area by J&J
ROYALTIES & MILESTONES PROVEN MASSIVE POTENTIAL Simeprevir: Continued strong market performance and clear dedication to disease area by J&J Market Performance Simeprevir sales grew rapidly in the beginning of the year as a result of off-label spontaneous use, and based on the treatment guidelines fr
Slide 20: Experience from real-world
ROYALTIES & MILESTONES PROVEN MASSIVE POTENTIAL Experience from real-world Olysio® setting a foot print in the market • More than 30,000 patients* have or are on Olysio® treatment in the US, setting a strong foot print • High level of recognition among physicians and clinicians both in US and Europe
Slide 21: Continued J&J support for Olysio (simeprevir)
ROYALTIES & MILESTONES PROVEN MASSIVE POTENTIAL Continued J&J support for Olysio® (simeprevir) Continued strong commitment from J&J in the HCV area J&J’s commitment is supported by concrete actions • Two phase III studies, OPTIMIST 1 and 2, evaluating treatment of genotype 1 HCV-infected patients wi
Slide 22: Nordic Brands
Nordic Brands Stable cash generation 22
Slide 23: Established pharmaceutical drugs with strong brand names and long prescription traditions
NORDIC BRANDS STABLE CASH GENERATION Established pharmaceutical drugs with strong brand names and long prescription traditions 14 unique drugs* Examples 1. Citodon 8. Nitroglycerin BioPhausia Citodon Mollipect 2. Digoxin BioPhausia 9. Paraflex 3. Egazil 10. Probecid 4. Laxabon 11. Solvezink 5. Lithi
Slide 24: Stable returns, minimal costs and continuous activities to improve gross margins
NORDIC BRANDS STABLE CASH GENERATION Stable returns, minimal costs and continuous activities to improve gross margins even further Stable returns Activities to improve gross margins (e.g.) Annual Sales • Streamline internal processes MSEK • Improve forecasting to minimize stock 175 176 without riski
Slide 25: Strong outlook for coming years
Strong outlook for coming years Summary 25
Slide 26: Targeted investments to enhance value, while also distributing cash to shareholders (1/2)
SUMMARY: STRONG OUTLOOK FOR COMING YEARS Targeted investments to enhance value, while also distributing cash to shareholders (1/2) Financial strength enables Medivir to benefit shareholders and ensure investment in future value creation Optimization • Strong financial position allows for cash distri
Slide 27: Targeted investments to enhance value of R&D portfolio and improve revenue growth (2/2)
SUMMARY: STRONG OUTLOOK FOR COMING YEARS Targeted investments to enhance value of R&D portfolio and improve revenue growth, while also distributing cash to shareholders (2/2) Innovation Established Brands Dedication and focus from everyone at Medivir on building and visualizing the value of each cor
Slide 28: Agenda
Agenda A focused strategy for sustainable value creation Balance sheet optimization overview Information going forward (News flow, milestones and events) Questions & answers 28
Slide 29: Optimization of capital structure – aligned with company strategy
BALANCE SHEET OPTIMIZATION Optimization of capital structure – aligned with company strategy Background • Current strong momentum with the successful market introduction of simeprevir has led to a very strong cash position and profitability for Medivir within a short time-frame • Based on Medivir’s
Slide 30: Voluntary redemption as capital distribution method
BALANCE SHEET OPTIMIZATION Voluntary redemption as capital distribution method Distribution method rationale • Voluntary redemption is recommended as capital distribution method for the following main reasons: - Only suitable and possible distribution method, in the short-term perspective - Flexibil
Slide 31: Agenda
Agenda A focused strategy for sustainable value creation Balance sheet optimization overview Information going forward (News flow, milestones and events) Questions & answers 31
Slide 32: Our ambition is to be transparent in our communication
INFORMATION GOING FORWARD (NEWS FLOW, MILESTONES AND EVENTS) Our ambition is to be transparent in our communication We will continue to announce / communicate We will improve • Our Nordic sales Quarter by Quarter • We will raise the visibility of Medivir on our • Important agreements or collaboratio
Slide 33: Near term milestones in our R&D projects
INFORMATION GOING FORWARD (NEWS FLOW, MILESTONES AND EVENTS) Near term milestones in our R&D projects • Q4: Phase II enabling, 6 month toxicology studies initiated with MIV-711 • Q4: Olysio Real-World-Data to be presented at AASLD in November Year 2014 • Nov. 6: PDUFA date for Olysio FDA label on co