Par Pharmaceutical Companies Inc
Par Pharmaceutical Companies — Corporate Update (January 2014)
28 slides from Par Pharmaceutical Companies's corporate update, Jan 29, 2014
Slide 1: Par Pharmaceutical Companies Company Update January 2014
Exhibit 99.1 PAR pharmaceutical Company Update January companies 2014
Slide 2: Cautionary Note Regarding Forward-Looking Statements
Cautionary This “estimate,” “project,” forma 2013 from ended Commission, presentation. of 1potential thepresentation those and date financial December investors, an and of expressed Note “forecast,” estimate You this as other results well Regarding 31, includes are document, and words 2013, as encou
Slide 3: Agenda
AGENDA Introduction Par 2Financial PharmaOverview Acquisition Rationale
Slide 4: Acquisition Rationale
Acquisition Rationale
Slide 5: JHP Acquisition Rationale
Acquisition Unique Highly Diverse Products Market Launch Robust Product In-house Capabilities Sophisticated Manufacturing Significant Strong 41•excess Allows Significant FDA In Revenues 2013E Defined compliance scrutiny capacity Compliance Financial Attractive Pipeline No Share Opportunity execution
Slide 6: JHP Business Overview
JHP Acquisition Business Specialty injectable Manufactures pharmaceuticals provides pharma anesthesiology, gastroenterology, women’s Key Coly-Mycin Pitressin Operates facility, building Sells audits more Employees: •% Revenue Major 5Products Aplisol Founded: 2013E Overview brands products than • com
Slide 7: JHP Products and Contract Manufacturing Overview
JHP’s Acquisition Contract Aplisol, Tigan, Cortisporin, Products 2013E R&D Standalone and New Overview each Strong 34 ANDAs Adrenalin Pitressin June Expedited Received Success –Recent Expect Other Generic 6Dexmedetomidine formation Levothyroxine Ethacrynic total expects year 2014 lab Capabilities Sp
Slide 8: Sterile Injectables: Large and Growing Market Opportunity
Sterile Acquisition Large 9.5 9.3 11.3 11.0 10.3 $4.8 11.6 0.5 $7.0 $7.5 $7.2 1.6 $7.8 0.1 $9.3 0.3 $9.4 0.7 $10.1 0.2 $10.3 0.4 $11.0 0.6 $11.2 $11.7 $12.2 ‘15E ‘14E ‘13E ‘12A ‘11A ‘10A 4.8 7.7 7.6 7.0 7.2 Total ‘22E ‘21E ‘20E New Significant Exclusivity $2.0 $2.4 $4.0 $6.1 $1.6 $1.4 $1.0 $0.4 $0.7
Slide 9: JHP Site Overview and Excess Capacity
Acquisition Site Rationale Excess Based 62% 28% 19% 14% 24% 2013 Speciality Current Significant By capacity approach Further Rochester 81JHP Represents 2018 overview has will 59% 19% 18% 23% 2014 on Capacity ability capacity high-quality only enjoy full Nominal 57% 19% 24% facility Injectables 2015
Slide 10: JHP Regulatory Compliance History and Audits
JHP Rationale Regulated Long-standing Audits Regulatory 15 21 In As 9Over 45 the part Has 35 past and ofimprovement a its by Strong 36 Inspections Bodies Customer commitment authorities months, relationship Compliance Other projects routine since intoEurope, with Third-Party 2011 quality, audits His
Slide 11: JHP Contract Manufacturing Opportunity
JHP’s Costs Acquisition Contract Consistent Which Fixed Maintains Standards Opportunity Introduce Capabilities Stable 10 Contract Customer Covers Manufacturing New •Quality Business 6–10 Rationale products •toTraining ••products Manufacturing Absorbs Selectively Base customer • Frequent • Consistent
Slide 12: Par Pharma Overview
Par Pharma
Slide 13: Par Pharma Business Overview
Business Pharma Par Develops, –Strategy manufacturing Historical $$1,009 $331 $227 2010A Revenue Adj. Margin LTM 94% 6% One 85% (Par) Generic 15% (Strativa) Branded 12Generic Strativa: Feb. Jul. Nov. 926 Pharma of EBITDA $357 $ 9/30/13 2012: 2012: 2011: 2012: 2013: 2011A the $1,050 249 22.5% focuses
Slide 14: Par Pharma Strategy and Competitive Position
Unique Specializing Pharma Par Focus “Partner Building Manufacturing Strong Generic 12% 2% 4% 8% Teva Source: Pharmaceutical 13 2% 12% Mylan on track 2% Strategy IMS Market of afirst 11% strong choice”: 2% Actavis record in Health, toand “niche,” 2% Share and file product product of Partner Sandoz (
Slide 15: Favorable Generic Industry Dynamics
Favorable Substantial Pharma Par Generic ($ $50.2 $2.9 $47.3 2013E $49.2 Total –U.S. Source: 14 Aging Regulatory Generics Increasing in $4.1 generics billion) Base $51.8 $47.7 2014E Wall Split population $5.1 Industry Generic role market $54.3 $51.6 scripts Street push of pharma 2015E $4.2 as Total
Slide 16: Par Pharma Manufacturing Excellence and FDA Compliance
Unique Operational Pharma Number 0Consent 2001 FDA Top decade Manufacturing 987654321Rank 10 11 12 13 14 16 17 18 19 20 21 22 23 24 25 Source: Par without 15Teva Watson 048Actavis Mylan Novartis Par1 Hosplra Pfizer BI Sun Amneal Apotex Aurobindo Fresenius Perrigo Impax Rantbaxy Lupin Endo Dr. Mallin
Slide 17: Well-Positioned Par Pharma Gross Profit
Well-positioned Pharma Gross (% 40% Exclusive 7% Royalties Other 22% Par 9% Products 12% Note: 16 of benefits + >2 2 1 Gross Existing Profit Parfrom thatprofit by are Generic Competitors Portfolio either its parameters focus exclusive Gross ofon“Sticky,” harder Profit) are or based have toDiverse ma
Slide 18: Key Par Pharma Product Revenues
Key Product Pharma Par Revenues Budesonide Propafenone Metoprolol Rizatriptan Lamotrigine Bupropion Chlorpheniramine Diltiazem Divalproex Fentanyl Dronabinol Fluvoxamine Zolpidem 1Strativa 17IMSMarketed NPA Product Brand Patch ($ tartrate Cardizem® HCl ODT Depakote® ER Marinol® data, caps ER in ER E
Slide 19: Robust R&D Investment Relative to Peers
Robust LTM Pharma 7.2% 7.5% 7.9% 8.6% 9.0% 10.7% 13.4% IPXL 3.2% Par Note: 18 invests 9/30/2013A 7.2% LCI Where Product PAR heavily 7.2% available, SGNT Development 6.9% R&D in R&D HITK generic-only Expense relative HSP andasR&D TEVA % toinformation Revenues its AKRX peers WPI was used. MYL PRGO
Slide 20: Attractive Product Pipeline Opportunities
Attractive Opportunities Product Pharma ($ Dextromethorphan Diclofenac Omega Oxycodone Colchicine Quetiapine Ezetimibe Rosuvastatin Dutasteride/Tamsulosin Testosterone Bosentan Lubiprostone Source: 19 in millions) -3-acid Filings, Brand Tablets Pipeline Zetia® Tabs Sodium Fumarate ER Gel Crestor® Ca
Slide 21: Robust Par Pharma Pipeline
Robust Pharma Par Spring Irvine, Chennai, Business Paragraph Greater Selective In 85 27 73 4P FTF Confirmed Total FTM 20otential Research Dev filed Filed ANDAs CA Valley, Pipeline than ANDAs Development India internal IV; and 85% as First NY Development with represents of API ofto Q4’13 our Sustaina
Slide 22: Par's Product Development Capabilities and Acquisitions
Par’s 29 •FTF, targets product State-of-the-art facilities Modified and through infrastructure Value FTF Par Anchen Edict Strong Combined 21Strong ANDAs Pharma –manufacturing FTM 35 Recent Spring –Value FTF track Chennai launches –Edict established products development manufacturing release Irvine C
Slide 23: Financial Overview
Financial Overview
Slide 24: Par Q4 Revenue Overview
ParinQ4 Revenue Overview Financial ($ $306 Q4’12 $69 $112 $242 Revenues Commentary The was 23 strong amillions)($ $156 significant Q4’13 2013 Adj. expected $120 increase Performance Q4’12 Gross in increase millions)($ to in Profit Q4’13 grow Year-over-Year in Highlights Adj. Q4’12 ~26% market in EBI
Slide 25: Par Financial Overview: Adjusted EBITDA Reconciliation
Par Overview Financial + $357 Original $286 2013 ($ Net 2013E Depreciation Interest Income Asset Inventory AWP Litigation Noncash Loss Transaction Business Milestone Management Severance Restructuring Cost Other Adjusted 2425% in2013 Income associated millions) on Actual Adjusted settlements imparim
Slide 26: Par Historical Financial Performance
Par Revenue Overview Financial $1,009 $1,098 $1,193 $926 $227 $331 $357 $194 16.3% 22.5% 26.8% Adjusted $388 $461 $513 $355 43.2% 29.8% 38.5% Adj. $173 $202 $244 $337 89.2% 68.3% 2009A 21Unlevered 25Excludes Defined Historical EBITDA% Gross $249 31.5% $400 46.8% $155 43.9% 81.4% 73.8% 2010A $1,050 (
Slide 27: JHP Historical Financial Performance
JHP Revenue Overview Financial $92 $108 $145 EBITDA 23.7% 27.7% $22 $26 $40 Gross 38.6% $35 $42 $58 Adj. $16 $24 57.1% 73.0% 2011A 1Unlevered 2December 262013 Defined $15 Historical EBITDA% Gross Margin 23.9% 38.9% 59.2% 2012A estimates ($mm) ($mm) as 31, Free Margin% EBITDA 39.7% ($mm) 2013E 2013 F
Slide 28: Par Pharmaceutical Companies
PAR pharmaceutical companies
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