Recordati S.p.a. · MIL:REC
Recordati — Jefferies 2016 Healthcare Conference
22 slides from Recordati's conference presentation, Jun 9, 2016
Slide 1: A Specialty Pharmaceutical Group
A Specialty Pharmaceutical Group JEFFERIES 2016 HEALTHCARE CONFERENCE, 9 JUNE 2016
Slide 2: A strategy of growth and geographical expansion
A strategy of growth and geographical expansion • An international specialty pharmaceutical group (€ 1,047.7 m sales in 2015 and 4,000 employees). • Marketing operations in the main European markets, in Russia, Poland Profile and other Central and Eastern European countries, in Turkey, in the U.S.A.
Slide 3: Extensive geographical footprint
Extensive geographical footprint 3
Slide 4: Geographical breakdown of pharmaceutical revenue
Geographical breakdown of pharmaceutical revenue Other international sales 17.1% (sales to licensees and exports) Italy 21.1% Other CEE 2.7% Other W. Europe 2.8% Portugal 3.4% France 9.8% North Africa 5.4% Spain 6.3% U.S.A. 8.8% Russia, other CIS and Ukraine 6.6% Turkey 7.7% Germany 8.3% Data: First
Slide 5: A diversified product portfolio
A diversified product portfolio Other corporate products 13.4% Drugs for rare diseases 15.2% Livazo® 3.0% Urorec® 7.3% Zanipress® 5.9% OTC 17.7% Zanidip® 11.6% Subsidiaries’ local product portfolios 21.1% Pharmaceutical chemicals 3.5% Ortoton® (methocarbamol) - Germany 3% Other revenue 1.3% Methadon
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 30 markets: Armenia, Azerbaijan, Be
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: 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 10: 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 11: A well balanced product pipeline
A well balanced product pipeline NAME ORIGINATOR INDICATION DEVELOPMENT STATUS Approved by a number of VITAROS® Apricus Erectile dysfunction health authorities in Europe Approved in EU CARBAGLU® Recordati Organic acidemias Phase III in U.S.A. CARBAGLU® Recordati Hyperammonaemia New formulations CYST
Slide 12: A well balanced R&D pipeline (cont'd)
A well balanced R&D pipeline (cont’d) • VITAROS® (alprostadil) is a topically applied cream formulation of alprostadil for the treatment of erectile dysfunction. A patient-friendly form of alprostadil as an alternative to PDE-5 inhibitors for difficult to treat patients. • CARBAGLU® (carglumic acid)
Slide 13: A well balanced R&D pipeline (cont'd)
A well balanced R&D pipeline (cont’d) • GRASPA® is L-asparaginase encapsulated in homologous human red blood cells. L- asparaginase has been shown to possess a powerful antitumor activity, but this enzyme is highly toxic and a large part of the patient population presents with a hypersensitivity and
Slide 14: First quarter 2016 highlights
First quarter 2016 highlights • Revenue € 302.2 million, up 9.6% • EBITDA € 99.0 million or 32.7% of sales, up 19.6% • Operating income (EBIT) € 90.2 million or 29.8% of sales, up 22.7% • Net income € 65.5 million or 21.7% of sales, up 26.0% • Net debt € 42.1 million, a reduction of € 46.6 million a
Slide 15: Main product sales
Main product sales Corporate products including drugs for rare diseases account for 62% of revenue (million Euro) 1Q 2016 1Q 2015 Change % Zanidip® (lercanidipine) 35.0 33.8 3.5 Zanipress® (lercanidipine+enalapril) 17.8 16.9 5.8 Urorec® (silodosin) 22.1 16.0 37.7 Livazo® (pitavastatin) 8.9 5.9 51.7
Slide 16: Composition of revenue by geography
Composition of revenue by geography Solid volume growth (million Euro) 1Q 2016 1Q 2015 Change % Italy 61,5 60.3 2.1 France 28,5 28.7 (0.7) U.S.A. 25.8 20.7 24.7 Germany 24.2 22.2 9.1 Turkey 22.5 21.1 6.4 Russia, other CIS countries and Ukraine 19.2 18.0 6.7 Spain 18.4 16.9 8.7 North Africa 15.8 10.8
Slide 17: First quarter 2016 results
First quarter 2016 results Further margin growth (million Euro) 1Q 2016 1Q 2015 Change % Revenue 302.2 275.7 9.6 Gross Profit 208.5 187.5 11.3 as % of revenue 69.0 68.0 SG&A Expenses 95.6 93.3 2.4 as % of revenue 31.6 33.8 R&D Expenses 22.3 19.9 12.0 as % of revenue 7.4 7.2 Other Income (Expense), n
Slide 18: First quarter 2016 results: operating segments
First quarter 2016 results Operating segments Revenue EBIT Treatments for rare diseases 15.2% Treatments for rare diseases 22.9% Primary & specialty care Primary & specialty care 84,8% 77.1% EBIT margin on sales: Treatments for rare diseases, 44.8% Primary & Specialty care, 27.1% 18
Slide 19: Financial position and Shareholders' equity
Financial position and Shareholders’ equity (million Euro) 31 Mar 2016 31 Dec 2015 Change Cash and short-term financial 270.5 225.5 45.0 investments Bank overdrafts and short-term loans (16.7) (9.8) (6.9) Loans – due within one year (39.1) (34.5) (4.6) Loans – due after one year (256.8) (269.9) 13.1
Slide 20: Financial projections: 2016 targets
Financial projections 2016 targets 2015 2016 (million Euro) Actual Targets Revenue 1,047.7 > 1,100 Operating income 278.5 > 310 (EBIT) Net Income 198.8 > 220 20
Slide 21: 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 IT Mid Cap, the FTSE IT Health Care and the STOXX Europe 600 Health Care indexes. Share capital consists of 209
Slide 22: 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