Recordati S.p.a. · MIL:REC
Recordati — Jefferies 2018 Global Healthcare Conference
25 slides from Recordati's conference presentation, Jun 6, 2018
Slide 1: A Specialty Pharmaceutical Group
A Specialty Pharmaceutical Group JEFFERIES 2018 GLOBAL HEALTHCARE CONFERENCE – NEW YORK, JUNE 6 2018
Slide 2: A strategy of growth and geographical expansion
A strategy of growth and geographical expansion • An international specialty pharmaceutical group (€ 1,288.1 million sales in 2017 and 4,176 employees). • Marketing operations in the main European markets, in Russia, Poland and other Central and Eastern European countries, in Turkey, in the Profile
Slide 3: Extensive geographical footprint
Extensive geographical footprint 3
Slide 4: Geographical breakdown of pharmaceutical revenue
Geographical breakdown of pharmaceutical revenue Other international sales 16.8% (sales to licensees, exports, sales in ROW) North Africa 2.9% Italy 21.4% Other W. Europe 3.9% Other CEE 4.6% France 9.6% Portugal 2.9% Spain 5.9% Germany 9.4% Turkey 6.4% Russia, other CIS U.S.A. 7.2% and Ukraine 9.0%
Slide 5: A diversified product portfolio
A diversified product portfolio Other corporate products 13.5% Seloken®/Logimax® 6.3% Drugs for rare diseases 15.0% Livazo® 3.4% Urorec® 7.3% Zanipress® 4.9% OTC 16.4% Zanidip® 9.9% Subsidiaries’ local product portfolios 19.9% Pharmaceutical chemicals 2.7% Ortoton® (methocarbamol) ‐ Germany 3% Other
Slide 6: Core corporate products: Zanipress and Zanidip
Core corporate products Zanipress® (lercanidipine+enalapril) Zanidip® (lercanidipine) • Lercanidipine is a proprietary latest generation calcium channel blocker indicated for the treatment of hypertension. Enalapril is an ACE inhibitor indicated for the treatment of hypertension. • Sales of Zanidip®
Slide 7: Core corporate products: Urorec (silodosin)
Core corporate products Urorec® (silodosin) • Highly selective α1A receptor antagonist indicated for the treatment of symptoms associated with benign prostatic hyperplasia (BPH). • Fast onset of action. High efficacy. Very good cardiovascular safety. • Launched in 37 markets. • License and co‐market
Slide 8: Core corporate products: Livazo (pitavastatin)
Core corporate products Livazo® (pitavastatin) • Highly effective HMG‐CoA reductase inhibitor indicated for the treatment of hypercholesterolaemia. • Thanks to its unique chemical structure Livazo® is a potent LDL‐lowering drug with a consistent and progressive HDL‐raising effect. (Atherosclerosis S
Slide 9: Core corporate products: Seloken/Logimax
Core corporate products Seloken®/Seloken® ZOK (metoprolol succinate) Logimax® (metoprolol succinate+felodipine) • Metoprolol succinate is a beta‐blocker mainly indicated for the control of a range of conditions including of hypertension, angina pectoris, disturbances of cardiac rhythm, maintenance t
Slide 10: Drugs for rare diseases: A worldwide business
Drugs for rare diseases A worldwide business Huge market potential: > 7,000 rare diseases identified for which treatments exist for only around 300. Progressive country introduction of rare disease plans and access to diagnostic tests will stimulate the market for orphan drugs. • Acquisition of Orph
Slide 11: Treatments for rare diseases
Treatments for rare diseases NORMOSANG® (EU‐RoW) /PANHEMATIN® (US) (human haemin), used to treat acute attacks of hepatic porphyria CARBAGLU® (carglumic acid), indicated in the treatment of hyperammonaemia due to NAGS deficiency and to the main organic acidemias COSMEGEN® (dactinomycin), used mainly
Slide 12: A well balanced product pipeline
A well balanced product pipeline NAME ORIGINATOR INDICATION DEVELOPMENT STATUS FORTACIN™ Plethora Solutions Premature ejaculation Launch in process REAGILA® Gedeon Richter Schizophrenia Approved in EU Treatment of cancer‐related pain in cases of methadone Filed in France resistance or intolerance to
Slide 13: A well balanced R&D pipeline (cont'd)
A well balanced R&D pipeline (cont’d) • FORTACIN™ (lidocaine+prilocaine) is an easy‐to‐use fast acting topical spray formulation of lidocaine and prilocaine for the treatment of premature ejaculation • REAGILA® (cariprazine) is an orally active and potent dopamine D3/D2 receptor partial agonist with
Slide 14: A well balanced R&D pipeline (cont'd)
A well balanced R&D pipeline (cont’d) • CARBAGLU® (carglumic acid), currently approved for the treatment of hyperammonaemia due to NAGS deficiency, approved in Europe and in filing preparation phase in the USA for additional indications in organic acidemias (orphan drug designation granted). New for
Slide 15: First quarter 2018 highlights
First quarter 2018 highlights • Revenue € 366.5 million, up 7.2% • EBITDA € 134.4 million or 36.7% of sales, up 14.2% • Operating income (EBIT) € 120.5 million or 32.9% of sales, up 12.4% • Net income € 86.6 million or 23.6% of sales, up 10.3% • Net debt € 484.6 million, an increase of € 102.3 milli
Slide 16: Main product sales
Main product sales Corporate products including drugs for rare diseases account for 68.1% of revenue (million Euro) 1Q 2018 1Q 2017 Change % Zanidip® (lercanidipine) 36.5 36.9 (1.1) Zanipress® (lercanidipine+enalapril) 17.9 19.1 (6.1) Urorec® (silodosin) 26.7 23.8 12.0 Livazo® (pitavastatin) 12.4 9.
Slide 17: Composition of revenue by geography
Composition of revenue by geography Continued growth (million Euro) 1Q 2018 1Q 2017 Change % Italy 76.4 74.8 2.3 France 34.1 29.9 14.1 Germany 33.4 27.7 20.5 Russia, other CIS countries and Ukraine 32.1 33.7 (4.7) U.S.A. 25.6 28.0 (8.6) Turkey 22.8 22.7 0.4 Spain 21.2 19.8 7.3 Portugal 10.2 10.0 2.5
Slide 18: First quarter 2018 results
First quarter 2018 results Further margin growth (million Euro) 1Q 2018 1Q 2017 Change % Revenue 366.5 341.9 7.2 Gross Profit 257.2 236.1 8.9 as % of revenue 70.2 69.1 SG&A Expenses 108.1 105.8 2.2 as % of revenue 29.5 30.9 R&D Expenses 27.7 23.2 19.4 as % of revenue 7.5 6.8 Other Income (Expense),
Slide 19: First quarter 2018 results: Operating segments
First quarter 2018 results Operating segments Revenue EBIT Treatments for rare diseases 15.0% Treatments for rare diseases 21.4% Primary & specialty care Primary & specialty care 85.0% 78.6% EBIT margin on sales: Treatments for rare diseases, 47.0% Primary & Specialty care, 30.4% 19
Slide 20: Net financial position
Net financial position (million Euro) 31 Mar 2018 31 Dec 2017 Change Cash and short‐term financial 198.8 302.1 (103.3) investments Bank overdrafts and short‐term loans (26.6) (16.6) (10.0) Loans – due within one year (50.3) (51.7) 1.4 Loans – due after one year (606.5) (615.6) 9.1 NET FINANCIAL POSI
Slide 21: Financial projections - 2018 targets
Financial projections ‐ 2018 targets • Sales to grow by 5% ‐ 6% over 2017. • Sales of the Zanidip® (lercanidipine)/Zanipress® (lercanidipine+enalapril) franchise expected to be in the € 175 ‐180 range in 2018. • Urorec® (silodosin) sales in 2018 expected to grow mid‐single digit to around € 100 mill
Slide 22: Financial projections: 2018 targets
Financial projections 2018 targets ‐ Margins to continue to improve EBITDA 36%, EBIT 32%, Net income 23% 2017 2018 (million Euro) Actual Targets Revenue 1,288.1 1,350 ‐ 1,370 EBITDA 454.7 490 ‐ 500 Operating income 406.5 430 ‐ 440 (EBIT) Net Income 288.8 310 ‐ 315 No acquisitions included in 2018 ta
Slide 23: Financial projections - 2019 plan
Financial projections ‐ 2019 plan • Organic growth to continue in 2019 at a rate of around 3% ‐ 5%. • Margins to be achieved in 2018 are sustainable over the plan period. • Ongoing development of current rare disease pipeline. New projects to be added. • Dividend pay‐out ratio of 60% of consolidated
Slide 24: The Recordati share
The Recordati share The Recordati share (ticker REC, Reuters RECI.MI, Bloomberg REC IM, ISIN IT 0003828271) has been listed on the Italian Stock Exchange since 1984. It belongs to the FTSE MIB, the FTSE IT Health Care and the STOXX Europe 600, Health Care, MSCI indexes. Share capital consists of 209
Slide 25: Company declarations, disclaimers and profile
Company declarations, disclaimers and profile DECLARATION BY THE MANAGER RESPONSIBLE FOR PREPARING THE COMPANY’S FINANCIAL REPORTS The manager responsible for preparing the company’s financial reports Fritz Squindo declares, pursuant to paragraph 2 of Article 154‐bis of the Consolidated Law on Finan
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