Recordati S.p.a. · MIL:REC
Recordati — Jefferies Global Healthcare Conference 2017
23 slides from Recordati's conference presentation, Jun 8, 2017
Slide 1: A Specialty Pharmaceutical Group
A Specialty Pharmaceutical Group JEFFERIES GLOBAL HEALTHCARE CONFERENCE, NEW YORK, 8 JUNE 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 14.9% (sales to licensees and exports) Other CEE 2.3% Italy 22.6% Other W. Europe 3.9% Portugal 3.0% North Africa 4.2% Russia, other CIS and Ukraine 10.2% Spain 6.0% France 9.1% Turkey 6.9% Germany 8.4% U.S.A. 8.5% Data: Firs
Slide 5: A diversified product portfolio
A diversified product portfolio Other corporate products 15.0% Drugs for rare diseases 15.2% Livazo® 2.8% Urorec® 7.0% Zanipress® 5.6% OTC 18.6% Zanidip® 10.8% Subsidiaries’ local product portfolios 21.0% Pharmaceutical chemicals 3.4% Ortoton® (methocarbamol) - Germany 3% Other revenue 0.6% 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 34 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: 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 Corneal cysteine crystal deposits in patients CYSTADROPS® Recordati Approved in EU with cystinosis Variation of EU approval FORTACIN™ Plethora Solutions Premature ejaculation completed REAGILA® Gedeon Richter Schizophreni
Slide 12: A well balanced R&D pipeline (cont'd)
A well balanced R&D pipeline (cont’d) • CYSTADROPS® (cysteamine) are eye drops developed for “ocular manifestations of cystinosis” which cannot be controlled by orally administered cysteamine, specially formulated in a patient-friendly gel form. • FORTACIN™ (lidocaine+prilocaine) is an easy-to-use f
Slide 13: 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 14: First quarter 2017 highlights
First quarter 2017 highlights • Revenue € 341.9 million, up 13.1% • EBITDA € 117.7 million or 34.4% of sales, up 18.9% • Operating income (EBIT) € 107.3 million or 31.4% of sales, up 19.0% • Net income € 78.5 million or 23.0% of sales, up 19.9% • Net debt € 105.6 million, a reduction of € 93.1 milli
Slide 15: Main product sales
Main product sales Corporate products including drugs for rare diseases account for 65.1% of revenue (million Euro) 1Q 2017 1Q 2016 Change % Zanidip® (lercanidipine) 36.9 35.0 5.5 Zanipress® (lercanidipine+enalapril) 19.1 17.8 6.9 Urorec® (silodosin) 23.8 22.1 8.0 Livazo® (pitavastatin) 9.6 8.9 7.1
Slide 16: Composition of revenue by geography
Composition of revenue by geography Continued growth (million Euro) 1Q 2017 1Q 2016 Change % Italy 74.8 61.5 21.5 Russia, other CIS countries and Ukraine 33.7 19.2 75.9 France 29.9 28.5 5.0 U.S.A. 28.0 25.8 8.5 Germany 27.7 24.2 14.6 Turkey 22.7 22.5 1.1 Spain 19.8 18.4 7.7 North Africa 13.8 15.8 (1
Slide 17: First quarter 2017 results
First quarter 2017 results Further margin growth (million Euro) 1Q 2017 1Q 2016 Change % Revenue 341.9 302.2 13,1 Gross Profit 236.1 208.5 13.2 as % of revenue 69.1 69.0 SG&A Expenses 105.8 95.6 10.6 as % of revenue 30.9 31.6 R&D Expenses 23.2 22.3 4.0 as % of revenue 6.8 7.4 Other Income (Expense),
Slide 18: First quarter 2017 results: Operating segments
First quarter 2017 results Operating segments Revenue EBIT Treatments for rare diseases 15.2% Treatments for rare diseases 22.0% Primary & specialty care Primary & specialty care 84.8% 78.0% EBIT margin on sales: Treatments for rare diseases, 45.2% Primary & Specialty care, 28.9% 18
Slide 19: Net financial position
Net financial position (million Euro) 31 Mar 2017 31 Dec 2016 Change Cash and short-term financial 219.8 138.5 81.3 investments Bank overdrafts and short-term loans (17.1) (15.7) (1.4) Loans – due within one year (40.3) (40.4) 0.1 Loans – due after one year (268.0) (281.1) 13.1 NET FINANCIAL POSITIO
Slide 20: 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 21: 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 ± 1,250 ± 1,450 EBITDA 371 ± 425 ± 500 Operating income 327 ± 380 ± 450 (EBIT) Net Income 235 ± 275 ± 325 21
Slide 22: 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 indexes. Share capital consists of 209,125,1
Slide 23: 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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