Recordati S.p.a. · MIL:REC
Recordati — Jefferies 2017 London Healthcare Conference
24 slides from Recordati's conference presentation, Nov 15, 2017
Slide 1: A Specialty Pharmaceutical Group
A Specialty Pharmaceutical Group JEFFERIES 2017 LONDON HEALTHCARE CONFERENCE, 15 NOVEMBER 2017
Slide 2: A strategy of growth and geographical expansion
A strategy of growth and geographical expansion • An international specialty pharmaceutical group (€ 1,154 million sales in 2016 and 4,100 employees). • Marketing operations in the main European markets, in Russia, Poland and other Central and Eastern European countries, in Turkey, in the Profile U.
Slide 3: Extensive geographical footprint
Extensive geographical footprint 3
Slide 4: Geographical breakdown of pharmaceutical revenue
Geographical breakdown of pharmaceutical revenue Other international sales 15.2% (sales to licensees and exports) Other CEE 3.4% Italy 20.7% Other W. Europe 4.1% Portugal 3.2% France 9.8% North Africa 3.3% Spain 6.4% Germany 9.4% Turkey 7.0% Russia, other CIS U.S.A. 9.0% and Ukraine 8.5% Data: First
Slide 5: A diversified product portfolio
A diversified product portfolio Other corporate products 13.1% Drugs for rare diseases 16.7% Seloken®/Logimax® 2.4% Livazo® 3.0% Urorec® 7.2% Zanipress® 5.6% OTC 16.2% Zanidip® 10.0% Subsidiaries’ local product portfolios 21.9% Pharmaceutical chemicals 3.2% Ortoton® (methocarbamol) - Germany 3% Othe
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 35 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 and 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: > 6,000 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 REAGILA® Gedeon Richter Schizophrenia Approved in EU Variation of EU approval FORTACIN™ Plethora Solutions Premature ejaculation completed Treatment of cancer-related pain in cases of methadone Filed in France resistance
Slide 13: A well balanced R&D pipeline (cont'd)
A well balanced R&D pipeline (cont’d) • REAGILA® (cariprazine) is an orally active and potent dopamine D3/D2 receptor partial agonist with preferential binding to D3 receptors and partial agonist at serotonin 5-HT1A receptors developed by Richter in the EU for the treatment of schizophrenia. The Sum
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 nine months 2017 highlights
First nine months 2017 highlights • Revenue € 963.8 million, up 11.8% • EBITDA € 342.0 million or 35.5% of sales, up 22.1% • Operating income (EBIT) € 307.5 million or 31.9% of sales, up 21.8% • Net income € 219.8 million or 22.8% of sales, up 20.6% • Net debt € 321.7 million, an increase of € 123.0
Slide 16: Main product sales
Main product sales Corporate products including drugs for rare diseases account for 65.9% of revenue (million Euro) Jan-Sept 2017 Jan-Sept 2016 Change % Zanidip® (lercanidipine) 96.1 90.0 6.8 Zanipress® (lercanidipine+enalapril) 53.7 50.8 5.8 Urorec® (silodosin) 69.5 63.3 9.9 Livazo® (pitavastatin)
Slide 17: Composition of revenue by geography
Composition of revenue by geography Continued growth (million Euro) Jan-Sep 2017 Jan-Sep 2016 Change % Italy 192.7 171.2 12.6 France 91.7 84.7 8.2 Germany 87.1 72.7 19.7 U.S.A. 83.4 77.4 7.7 Russia, other CIS countries and Ukraine 79.3 56.1 41.3 Turkey 65.4 65.8 (0.6) Spain 59.6 55.8 6.7 North Afric
Slide 18: First nine months 2017 results
First nine months 2017 results Further margin growth (million Euro) Jan-Sep 2017 Jan-Sep 2016 Change % Revenue 963.8 862.4 11.8 Gross Profit 676.2 595.1 13.6 as % of revenue 70.2 69.0 SG&A Expenses 295.2 273.5 7.9 as % of revenue 30.6 31.8 R&D Expenses 72.1 60.2 19.8 as % of revenue 7.5 7.0 Other In
Slide 19: First nine months 2017 results: operating segments
First nine months 2017 results Operating segments Revenue EBIT Treatments for rare diseases 16.7% Treatments for rare diseases 24.0% Primary & specialty care Primary & specialty care 83.3% 76.0% EBIT margin on sales: Treatments for rare diseases, 45.8% Primary & Specialty care, 29.1% 19
Slide 20: Net financial position
Net financial position (million Euro) 30 Sep 2017 31 Dec 2016 Change Cash and short-term financial 297.9 138.5 159.4 investments Bank overdrafts and short-term loans (33.0) (15.7) (17.3) Loans – due within one year (51.7) (40.4) (11.3) Loans – due after one year (534.9) (281.1) (253.8) NET FINANCIAL
Slide 21: Financial projections - assumptions
Financial projections - assumptions • Plan includes around 8% of sales to be allocated to R&D activities • Dividend pay-out ratio of 60% of consolidated net income to be maintained • Cash flow, after payment of dividends, to be entirely re-invested for the growth of the group • Bolt on acquisitions
Slide 22: Financial projections: 2017 targets and plan for 2019
Financial projections 2017 targets and plan for 2019 EBIT and EPS to continue to grow double digit 2016 2017 2019 (million Euro) Actual Targets Plan Revenue 1,154 1,290 - 1,300 ± 1,450 EBITDA 371 450 - 460 ± 500 Operating income 327 400 - 410 ± 450 (EBIT) Net Income 235 290 - 295 ± 325 22
Slide 23: 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 24: 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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