Teva Pharmaceutical Industries Limited · TASE:TEVA
Teva Pharmaceutical Industries — 27th Annual Healthcare Conference 2009
28 slides from Teva Pharmaceutical Industries's conference presentation, Jan 12, 2009
Slide 1: Introducing the world leader in generic pharmaceuticals
Introducing the world leader in generic pharmaceuticals Eyal Desheh, CFO Bill Marth, President and CEO, Teva North America Presentation at the 27th Annual Healthcare Conference Monday, January 12, 2009
Slide 2: Forward looking statements
Forward looking statements TODAY S PRESENTATION CONTAINS FORWARD-LOOKING STATEMENTS, WHICH EXPRESS THE CURRENT BELIEFS AND EXPECTATIONS OF MANAGEMENT. SUCH STATEMENTS INVOLVE A NUMBER OF KNOWN AND UNKNOWN RISKS AND UNCERTAINTIES THAT COULD CAUSE TEVA'S FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS TO
Slide 3: Today's discussion
Today’s discussion Introducing Teva Financial and strategy update Q&A
Slide 4: Introducing Teva
Introducing Teva Established 1901 2007 sales $9.4B 2008 proforma with Barr ~$14B ~65 countries ~37,000 employees
Slide 5: Three lines of business
Three lines of business 100%=$9.4bn 6% API API (external (external only) only) synergies 75% Generic Generic pharmaceuticals pharmaceuticals balance 19% Innovative Innovative pharmaceuticals pharmaceuticals (2007)
Slide 6: The world's number 1 generics player
The world’s number 1 generics player Revenues, $ bn, 2007 ! "# $ % & ' ( ) Source: company publications
Slide 7: With 4 strong branded operations
With 4 strong branded operations Multiple Multiple Parkinson’s Parkinson’s Respiratory Respiratory & & sclerosis sclerosis Women’s Women’s health health Supports balanced business model Marketing/branding skills for branded generics Highly profitable business
Slide 8: Vertical integration through in-house Teva API
Vertical integration through in-house Teva API In-house API Generic & API Guaranteed quality R&D to maximizes ingredient supply first-to-file pipeline for generics business
Slide 9: Generics is all about scale – Teva is #1
Generics is all about scale – Teva is #1 IMS TRx MAT June, % of total Faster organic growth + Others Top 4 + 61% Big ,+ #4 players + #3 get bigger Top 4 35% + #2 + *+ + Barr + + #1 - Teva *+ Better at M&A ,,
Slide 10: Big gets bigger – with Barr
Big gets bigger – with Barr Ranking of prescription volume, total Rx’s, millions, U.S. market Generic Branded 610 , 307 - . 259 / #0 , #0 ) 1 23 , "4 "# % * * BIG to BIG ) 3 * Source: IMS Health, September 2008, NPA
Slide 11: R&D to feed the industry's largest pipeline
R&D to feed the industry's largest pipeline U.S., 28 October 2008
Slide 12: Globally diversified business
Globally diversified business 100%= $1.1bn $9.4bn International + ,+ + Israel + *+ Europe ,+ *+ North America + ,,
Slide 13: A platform for growth in Japan
A platform for growth in Japan • The world’s 2nd pharmaceutical market • A relatively low generics share • Government aims to double generics use in 5 years • 50/50 JV with Kowa aims for $1bn sales in 2015
Slide 14: Global pharmaceutical supply chain
Global pharmaceutical supply chain 31 pharma facilities in 16 countries Barr adds 8 facilities in 3 countries Capacity with Barr ~60 billion tablets Canada (3) UK (2) Netherlands Ireland Poland US (5) France Czech Rep Spain Hungary (2) Mexico (4) Israel (5) Peru Venezuela Chile Argentina
Slide 15: Successful M&A track record
Successful M&A track record Index, 1995 = 100 IVAX (global) Barr (global) Bentley Dorom (Spain) Sales Sales Net Net (Italy) income CoGenesys income (technology) CAGR CAGR CAGR CAGR RDL 23% 23% 29% 29% (India – API) Honeywell Sicor (Italy) (global) APS Berk Novopharm Bayer Classics (UK) (Canada) (Fra
Slide 16: Reach $20 billion sales
2012 target REACH EXCEED $20 20% billion net income sales margin
Slide 17: Pioneering biogenerics beyond 2012
Pioneering biogenerics beyond 2012 Attractive market Unique Teva assets • > $200bn by 2015 • Israeli and CoGenesys R&D capabilities • Patent expirations – 40% of total value • Financial resources • R&D, marketing • Early on ex-US investments limit activities (biosimilar number of competitors GCS-F -
Slide 18: Today's discussion
Today’s discussion Introducing Teva Financial and strategy update Q&A
Slide 19: Overall results for 9 months 2008
Overall results for 9 months 2008 9M 2007 9M 2008* Change Sales 6,832 8,237 +17% $m Net income 1,382 1,740 +21% $m EPS 1.69 2.10 +20% $ * Net income and EPS are non GAAP results
Slide 20: Sources of sales growth
Sources of sales growth Q3 sales, $ million 2007 2008 Change North America - pharma 1,315 1,614 23% Europe - pharma 621 685 10% International - pharma 300 395 32% Total - pharma 2,366 2,694 20% API (external sales) 130 148 14% Total 2,366 2,842 20%
Slide 21: Continued track record of growth – Q3
Continued track record of growth – Q3 Q3 sales, $ million 2,842 * 2,386 2,286 , ,, , * " 5 1,247 1,317 ! 65 ! 6 73 4 , ! 6- "! # ,* ,, ,, ,, ,, ,,*
Slide 22: Copaxone is the MS therapy market leader
Copaxone® is the MS therapy market leader U.S. Market share, value, % Copaxone® Avonex® Rebif® Betaseron® Tysabri® Note: based on Q3’08 releases of all companies
Slide 23: Cash generation
Cash generation $ million 806 746 710 , , 545 Cash from operations Net asset purchase 332 Dividends distributed , * Free cash flow Q3 2007 Q4 2007 Q1 2008 Q2 2008 Q3 2008 $410m $410m $366m $366m acquisitions acquisitions acquisitions acquisitions
Slide 24: Leverage going down
Leverage going down Selected balance sheet items, $ billion 19.4 18.3 18.8 , , * ' $ 6 6 ! ' $ 6 &6 ! 783 * 30 Sept 31 Dec 30 Sept 2007 2007 2008 Leverage 29% 27% 24%
Slide 25: 2008: an exciting year
2008: an exciting year Global #1 Copaxone® Record sales: run rate > $2bn Positive results of ADAGIO Azilect® Tyramine study successful Record Para IV launches in U.S. (7) Submissions Record generic submissions (150, Europe doubled) and launches Tevagrastim®, first biogeneric launch in Europe Interna
Slide 26: 2008: an exciting year
2008: an exciting year Barr / PLIVA Acquisitions CoGenesys and global Bentley (Spain) expansion Kowa JV (Japan) Infra- Capacity: 41->51bn tablets (before Barr) structure Generic R&D and IP expansion Biologics (CoGenesys) Abic Veterinary (Israel) Focus, Ivax Diagnostics (U.S.) divestments Human Blood
Slide 27: Summary
Summary Teva is the world’s largest generic company and is Scale widening the gap Vertically integrated, balanced business model Balance combines Generic, Innovative and Specialty products Teva is a true global company, focusing on the large Global and growing pharmaceuticals markets Continued expan
Slide 28: Today's discussion
Today’s discussion Introducing Teva Financial and strategy update Q&A
Teva Pharmaceutical Industries — 27th Annual Healthcare Conference 2009 on 6ix