Teva Pharmaceutical Industries Limited · TASE:TEVA
Teva Pharmaceutical Industries — Investor Day (February 2008)
100 slides from Teva Pharmaceutical Industries's investor day presentation, Feb 21, 2008
Slide 1: Teva Strategy Overview
Teva Strategy Overview February 21, 2008
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: Table of Contents
Table of Contents Teva’s Growth Strategy 2008-2012 Global Generic Markets US Europe International Global Generic Resources Innovative Strategy BioGenerics Modeling Teva Closing Thoughts
Slide 4: Teva's Growth Strategy 2008-2012
Teva’s Growth Strategy 2008-2012 Shlomo Yanai President and CEO Teva Pharmaceutical Industries Ltd. February 21, 2008
Slide 5: 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 6: Fundamental Questions
Fundamental Questions Can Teva sustain its pace of growth ? for years to come? ? What will be Teva’s key growth drivers? ? What is Teva’s value proposition? 1
Slide 7: Teva's 20/20 Target
Teva’s 20/20 Target By 2012, we expect to: Double our business Reach revenues of $20 billion Exceed net income margins of 20% 2
Slide 8: Growth Through Market Leadership
Growth Through Market Leadership 2007 Sales of peer group $9.4 B Market Leadership: $7.0 B Market share $2.6 B $2.5 B $2.5 B Gap between #1 and #2 Teva Sandoz Mylan Barr Watson 3 Source: Company reports and analyst estimates
Slide 9: The Leader's Reward
The Leader’s Reward Difference in operating margin 10% Market leaders are typically more profitable than followers 8% 6% The greater the share gap the greater the profit advantage 4% Greater absolute market 2% share correlates with greater profitability 0% 0% 5% 10% 15% 20% 25% 30% Difference in mar
Slide 10: The External Environment
The External Environment Demographic shifts and emerging market growth Demand Global generics ~$75b in 2007 to ~$120b in 2012 Decision-making shifting to payors Payors Growing pressure to lower costs Global standards, common products, and global Harmonization economies of scale create a few global l
Slide 11: Growth Will Create "2 More U.S. Markets"
Growth Will Create “2 More U.S. Markets” Global Generics Sales $120B $45B $75B International Europe North America* 2007 2012 * U.S. and Canada 6 Source: IMS, Espicom; Teva estimates of local markets
Slide 12: Teva's Core Strengths and Competitive Advantages
Teva’s Core Strengths and Competitive Advantages Broadest product portfolio Teva’s Teva’s Scale Scale Largest first-to-file / Paragraph IV pipeline and and API leadership Leadership Leadership Large global footprint, leadership in most significant market (U.S.) R&D, legal and regulatory excellence L
Slide 13: Key Pillars of Our Strategy
Key Pillars of Our Strategy Increase Increase Teva’s Teva’s Extend leadership in U.S. market market share share in in Establish leadership in key EU and International markets key key markets markets Double R&D capabilities Double Double our our Focus on first-to-market / Paragraph IVs product produc
Slide 14: Teva's Value Proposition
Teva’s Value Proposition Growth Company Commitment To Global Generics Leadership Balanced Business Model Attractive Financial Returns Teva’s Culture and Brand 9
Slide 15: Key Themes
Key Themes Double our business Where Teva Reach revenues of $20 billion is going Exceed net profit margins of 20% Increase market leadership How we will Double-down on product portfolio get there Redefine customer service Affordable Biogenerics Differentiated approach to Innovative 10
Slide 16: Teva North America
Teva North America Bill Marth President and CEO Teva North America February 21, 2008
Slide 17: 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 18: North American Sales Goal
Our Goal North American Sales $9.5 – 11.5 B CAGR: 13-17% $5.2 B 2007 2012 1 Note: Includes all pharmaceutical sales in the U.S. and Canada
Slide 19: Respiratory
Respiratory Large global Key part of our market strategies market Potential market of ~$25 Billion by 2012 Teva Significant share of SABA market (US) commercial strengths Relationships with trade, payors, physicians Numerous pipeline products Investments in R&D Leveraging innovative and generic R&D
Slide 20: U.S. Generics – Key Themes
U.S. Generics – Key Themes Strong generics growth in a very attractive market Strategy Clear U.S. market leader - we aim to significantly increase our market share leadership Double down on our generics portfolio Execution Improve our generics commercial model with even greater focus on customers Ov
Slide 21: Teva is the Clear U.S. Market Leader
Teva is the Clear U.S. Market Leader Number of TRxs per day Millions Teva dispenses 1.2 nearly 2 out of every 10 generics 0.8 prescriptions 0.6 0.5 Teva’s daily 0.4 volume is 50% greater than the next closest Teva Mylan Watson Sandoz Barr competitor 4 Source: IMS National Prescription Audit MAT Dece
Slide 22: Extending U.S. Leadership to 30% Market Share
Extending U.S. Leadership to 30% Market Share Number of TRxs Generic Industry TRxs Teva total generic TRxs 3.6 B 2.4 B Projected TRx CAGRs Generics overall: 8% 1.1 B Teva: 20% 0.4 B 2007A 2012E Teva’s share* 18% 30% * Projected 5 Source: IMS Health National Prescription Audit, Teva Estimates
Slide 23: Key Elements of the U.S. Strategy
Key Elements of the U.S. Strategy Significantly greater investment in R&D Product Expand portfolio - new product launches portfolio Heavy emphasis on Para IV filings Leverage our scale for strategic and Leadership competitive advantage and scale Supply Chain preeminence Innovate our commercial model
Slide 24: Doubling Down on Generic R&D
Doubling Down on Generic R&D Doubling our submissions Accelerating development to further increase our “first-to-file,” “first-to market” and “first-to-opportunity” positions Doubling output without doubling resources through: Capacity Speed Efficiency Parallel development Technology 7
Slide 25: Products Pending Approval and In Development Cover Most of the Market
Products Pending Approval and In Development Cover Most of the Market 2007 Pharmaceuticals Market $285 B Opportunity 65% Of the market Teva products $83 B in development Teva products $101 $101 B B pending approval Total market 8 Source: IMS, Teva estimates
Slide 26: Teva has the Most Valuable Pipeline…
Teva has the Most Valuable Pipeline… Pipeline Number of ANDAs pending 160 Teva has more ANDAs than any two competitors >80 combined 71 70 60 92 current Teva files are First- 49 Paragraph IV to-file challenges (49 16 11 12 N/A have FTF Teva Sandoz Mylan Barr Watson status) 9 Source: Investor earnings
Slide 27: …and the Broadest Product Portfolio in the Industry
…and the Broadest Product Portfolio in the Industry ESTIMATES Currently marketed products Number of products Teva 331 Sandoz 200 Teva has 65% more marketed Mylan 170 products than the next closest competitor Barr 150 Watson 150 10 Source: Investor earnings call transcripts and company statements
Slide 28: Our Scale Gives Us an Unrivaled Ability to Launch At Risk
Our Scale Gives Us an Unrivaled Ability to Launch At Risk Leverages our core capabilities R&D Legal/regulatory Product commercialization: the way we go to market Supply chain flexibility Customers value earlier and superior access to products Enhances profitability 2007: Pantop 11 Source: Market dat
Slide 29: Advantages of Supply Chain Preeminence
Advantages of Supply Chain Preeminence Ability to leverage customer demand information across the Supply Chain Robust global Supply Chain network Prompt, seamless coordination of complex supply and distribution network Supported by 14 manufacturing sites globally Ability to execute large launches qu
Slide 30: Robust Customer Relationships Are Critical to Our Success
Robust Customer Relationships Are Critical to Our Success Generics are critical to We have developed a customer-centric Teva’s key customers business model Core elements: By 2012 generics will represent > 75% of all Superior service prescriptions in the U.S. Collaborative planning Early access to ne
Slide 31: Reach All Pharmacies In a Day
Example: ‘Game Changing’ Customer Service Innovation Reach All Pharmacies In a Day . . . • Our goal within 3 years, is to reach 50,000 pharmacies nationwide the day after launch • Significant investment planned to expanding our Supply Chain in combination with a new Direct-to-Store delivery capabili
Slide 32: Teva's U.S. Generics Financial Goal
Teva’s U.S. Generics Financial Goal U.S. Net Sales Projected Growth CAGR 2007 – 2012 >14% Key Paragraph IVs and other 10% new products Big-to-big customer relationships Additional upside in specialty and innovative Market Teva products 15 Source: IMS; Teva estimates
Slide 33: Extending our Lead
Extending our Lead Future portfolio ANDAs Pending 200 Teva 150 100 Barr Sandoz Watson 50 Mylan 0 0 50 100 150 200 250 300 350 400 Current portfolio Marketed products 16 Note: Bubble size is proportional to IMS reports of 2007 TRx; Teva = 437 Million
Slide 34: European Generics Market
European Generics Market Gerard W.M. van Odijk President and CEO Teva Europe February 21, 2008
Slide 35: 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 36: Key Themes
Key Themes • European generics market is large and growing • Teva has a proven track record of growth • Growth strategy focuses on: - Increasing our share - Securing leadership - Investing in our core functions • By 2012, we expect to more than double our sales and grow EBIT even faster 1
Slide 37: Our Goal: European Sales
Our Goal European* Sales $5.1 – 5.7 B 18-21% $2.2 B 2007 2012 2 * Refers throughout to Western Europe and Hungary
Slide 38: The Western European Generics Market is Large and Growing
The Western European Generics Market is Large and Growing CAGR, 2007-12 Europe overall is a large market Growth is particularly strong in with steady growth (7% CAGR) the EU’s “Latin” countries Net sales retail and hospital USD Billions Italy Spain France +7% 20.2 14.7 +20% +15% +14% 2007 2012 3
Slide 39: High Growth in "Latin" European Countries, Driven by New Reforms
High Growth in “Latin” European Countries, Driven by New Reforms Generics Market Share Volume 63% 65% 54% 50% Increased Increased Generics Generics penetration penetration 17% 12% 7% Italy Spain France Netherlands Germany U.S. U.K. Emerging Generics Markets Mature Generics Markets “Latin Europe” 4 S
Slide 40: In Germany, Tenders Create New Opportunities
In Germany, Tenders Create New Opportunities Generics Market Share Volume Tenders Tenders are are entry entry ticket ticket to to the the world’s world’s 2nd 2nd largest largest generics generics market market (~ (~ $5 $5 billion) billion) Shift Shift from Branded-Generics to from Branded-Generics t
Slide 41: Across the Region, Pharmacies and Chains Gaining Importance
Across the Region, Pharmacies and Chains Gaining Importance U.K. Pharmacist/ Substitution Substitution Broad payor influence Netherlands Generics Broad Generics portfolio model portfolio model France Germany Market Italy transition Spain Markets undergoing Branded Branded Selective change Generics S
Slide 42: Core Elements of Our Strategy
Core Elements of Our Strategy • Expand ‘big-to-big’ relationships Extend Extend lead lead in in U.K., U.K., Italy, Italy, and and • Further broaden product portfolio Netherlands Netherlands • Drive profitability through scale • Build leadership in “Latin” markets Secure Secure leadership leadership
Slide 43: Our Continued Back-End Investment Creates a Foundation for our Growth
Our Continued Back-End Investment Creates a Foundation for our Growth 1. 2. Doubling Doubling our our European European GR&D GR&D Doubling Doubling Manufacturing Manufacturing investment investment next next 55 years years Capacity Capacity next next 55 years years > 1500 Up Up scaling scaling (+50%
Slide 44: Teva's Proven Go-to-Market Approach
Teva’s Proven Go-to-Market Approach 1. 2. “Big-to-Big” “Big-to-Big” “Sell-out” “Sell-out” Portfolio Portfolio breadth breadth and and Distinctive Distinctive commercial commercial offers offers and and geographical geographical presence presence position position lean lean & & agile agile go-to-mark
Slide 45: Closing Remarks
Closing Remarks • European generics market is attractive • Teva is uniquely positioned to succeed in Europe • Teva’s European growth strategy is focused on achieving market leadership • By 2012, Teva will more than double sales and grow EBIT even faster 10
Slide 46: International Generic Markets
International Generic Markets Chaim Hurvitz Group VP – International Teva Pharmaceutical Industries Ltd. February 21, 2008
Slide 47: 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 48: Key Themes
Key Themes Huge potential in the International markets Strong starting point - market positions, global capabilities 1
Slide 49: Our Goal: International Sales
Our Goal International Sales $3.2 – 4.0 B 18-23% $1.4 B 2007 2012 2
Slide 50: Strong International Market Growth
Strong International Market Growth Pharma Market (CAGRs 2007-2011) Eastern Europe: 18% Asia: Japan: 11% 4% Latin America: 10% International markets: 2007 : $ 188 B 2011: $ 257 B 3 Source: IMS, ex-factory prices 07/07
Slide 51: Broad Teva Presence in International Markets
Broad Teva Presence in International Markets Presence Latvia Poland Russia Lithuania Czech Romania Bulgaria Ukraine 19 Manufacturing Hungary Turkey China sites Japan Mexico Israel 3 Partnerships Taiwan 24 National India Kenya companies Venezuela Singapore Peru Brazil S. Africa Chile Uruguay Argentin
Slide 52: International Generic Markets Growing Rapidly
International Generic Markets Growing Rapidly CAGR 2007-12 2007 ($B) Generics 2012 ($B) Generics Percent China 12.7 22.4 12 India 6.6 9.3 7 S. Korea 3.5 4.9 7 Mexico 3.4 6.6 14 Japan 3.3 8.9 22 Turkey 3.2 4.3 6 Russia 2.5 5.2 16 Brazil 1.5 4.6 25 5 Source: IMS; Espicom; Teva estimates
Slide 53: Strategic Considerations For Prioritizing Markets
Strategic Considerations For Prioritizing Markets Market size Growth rate Readiness / Maturity - Political and economy stability - Government accountability to health care - Regulatory & Legal environment 6
Slide 54: Two Types of Markets on our Priority List
Two Types of Markets on our Priority List Emerging Economies Early Generic markets Strong economic growth Large, or rapidly and rising personal growing overall pharma wealth market Consolidated group of Low generic share retailers and distributors Favorable trends e.g., Rising patient demand demogra
Slide 55: Brazil – Emerging Economy; Quality Is Growing in Importance
Brazil – Emerging Economy; Quality Is Growing in Importance $ Billions CAGR 2007-12 Percent +5% 17.4 8 4.0 Patented 13.6 Rising personal molecules wealth drives 2.7 Bioequivalent -1 growth at the 8.8 expense of Branded “Similares” Generics and Similares 9.4 Customers are consolidating Bioequivalent
Slide 56: Mexico – Emerging Economy; Quality Is Growing in Importance
Mexico – Emerging Economy; Quality Is Growing in Importance $ Billions CAGR 2007-12 25.1 Percent Already # 1 in +13% Public Sector Government is: 18.5 12 Enforcing 13.7 bioequivalence laws Innovative Increasing & Branded 10.3 public health Generics spending 3.4 6.6 14 Generics A broad portfolio 3.4
Slide 57: Japanese Generics Market Poised To Grow
Japanese Generics Market Poised To Grow World’s 2nd largest pharma market - 2007: $67B - 2012 projection: $83B Attractive fundamentals: - Aging population - Rising healthcare costs - Government encouraging generics penetration 10
Slide 58: Significant Opportunity To Increase Generics Penetration In Japan
Significant Opportunity To Increase Generics Penetration In Japan Generics share of total prescription drug market In percentage 17 5 Volume Value Government targeting 30% volume share by 2012 Government could save ~$25B annually 11 Source: IMS; MHLW; Espicom; Teva analysis
Slide 59: Closing Remarks
Closing Remarks Huge potential Strong starting point - markets positions, global capabilities Growth by: Extending existing presence Entering new markets Our goal: $3.2–4.0 Billion in profitable revenues in 2012 12
Slide 60: Global Generic Resources
NJE-1410.1305-20080207-dineHR2 Global Generic Resources Amir Elstein Executive VP, Global Resources Teva Pharmaceutical Industries Ltd. February 21, 2008
Slide 61: 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 62: Key Themes
Key Themes Goal Goal of of Global Global Enable Enable Teva Teva to to win win Generic Generic Resources Resources in in all all markets markets where where wewe compete compete 1
Slide 63: Key Success Factors For Our Growth Strategy
Key Success Factors For Our Growth Strategy Greatest rate of first-to- market products GR&D TAPI Redefine customer service Competitive cost position Pharma Supply Shift from unifocal to operations chain multifocal Leverage our scale 2
Slide 64: Global Generic Resources: Driving Market Leadership
Global Generic Resources: Driving Market Leadership Portfolio value Service leadership Double capacity Unmatched “2x” combined capabilities performance 3
Slide 65: TAPI Global Advantage – Size and Service
TAPI Global Advantage – Size and Service Company Estimated 2007 Sales Teva Huge Hugeportfolio portfolio(250+ (250+ $ Millions Western products) products) Indian Highly Highlyresponsive responsive Chinese Strong Strongpatent patentposition position 1,460 Top Toptalent talent––scientific scientific an
Slide 66: Global Portfolio Uses U.S. as Springboard
Global Portfolio Uses U.S. as Springboard 2007 2010 Leveraged investment # Global files 126 More than double Bioequivalence studies API development P IV / First-to-file >50% >50% Formulation technology High Portfolio Value: Total Value and Value per File Manufacturing process Rapid Rapid cost-effect
Slide 67: Service Leadership at the Next Level
Service Leadership at the Next Level Teva Tevaservice: service:“Big-to-Big” “Big-to-Big” Customer Customerneeds needs supply supplysystem system Pharmacy profitability/ Broad portfolio and rapid product availability targeted distribution Multi-region/multi-country Global supply chain supply reliabil
Slide 68: Substantially Expanding our Supply Chain to Support Growth
Substantially Expanding our Supply Chain to Support Growth Solid oral drugs Billions of tablets 120 >2x >2x in in Moving 100 “on-time” “on-time” Movingtotoseparate separate from fromthe thepack pack capacity capacity Enhancing Enhancingourour 80 already alreadypowerful powerful launch launchcapabili
Slide 69: Selecting the Best Site to Maximize Value
Selecting the Best Site to Maximize Value Czech Netherlands Republic Missouri Hungary Toronto UK NJ Switzerland China Speed CA PA Italy India EBIT Puerto Rico Mexico Venezuela Israel (5) Peru Vertical Brazil integration Chile Argentina Operating Operatinginin20 20countries countries TAPI: TAPI:1616p
Slide 70: Global Leadership: Enable Teva to Win in All Markets
Global Leadership Double portfolio value and capacity of global core functions Maintain and enhance Enable Enable Teva Teva to to win win service leadership in in all all markets markets where where wewe compete compete Separate from the pack – unmatched global generic resources 9
Slide 71: Teva's Innovative Strategy
Teva’s Innovative Strategy Moshe Manor Group VP - Global Innovative Resources Teva Pharmaceutical Industries Ltd. February 21, 2008
Slide 72: 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 73: Key Themes
Key Themes $3 billion in risk-adjusted revenues expected by 2012 Growth in Innovative contributes to Teva brand and balanced business model Investing to create long-term value 1
Slide 74: Proven Capabilities Across the Value Chain
Proven Capabilities Across the Value Chain Sourcing Sourcing innovation, products and companies, focusing on Israeli science Executing trials at low cost, with competitive Development recruitment rates Experience in working with regulators Regulatory First-class capabilities Manufacturing Synergies:
Slide 75: Our Differentiated Approach to Innovative
Our Differentiated Approach to Innovative Focus on niche therapeutic areas Products with: Differentiated clinical attributes Real economic value for patients and payors Teva’s unique advantages Sourcing Development Go-to-market approach Strategies to mitigate risk Upfront investment Methodologies (B
Slide 76: Three-Pronged Strategy
Three-Pronged Strategy Source products globally in focused TAs Unique sourcing Rapid evaluation and investment in opportunities value proposition (New Ventures) Unique value proposition (IP) Streamline decision-making; shorten time, “kill early” Next-generation Flexibility by outsourcing non-strateg
Slide 77: Clinical Development Pipeline
Clinical Development Pipeline Laquinimod® (MS) Copaxone® Copaxone® Copaxone® 40mg (CIS/MS ) (MS) (MS) Laquinimod® Laquinimod® (SLE/LN) (CD) Submission Copaxone® Talampanel® Azilect® Azilect® (ALS ) 40mg (PD/DM) (PD) (ALS) CT-011 CT-011 StemEx® Debrase® (Solid (Hematol. Cancers) (Cancer) (burns) Canc
Slide 78: Time-to-Market for Potential Products
Time-to-Market for Potential Products Debrase® (burns) Potential revenue (risk adjusted) Copaxone® 40mg 2015: $4-5B (ALS) Azilect® Laquinimod® (PD - DM) (SLE/LN) Copaxone® 20mg Laquinimod® (CIS) (CD) Copaxone® 40 mg Talampanel® CT-011 (MS) (ALS) (Solid Cancer) StemEx® Laquinimod® CT-011 (Cancer) (MS
Slide 79: Copaxone Is On-Track to Become Global #1 (in Value)
Copaxone Is On-Track to Become Global #1 (in Value) 35% 32% 30% 30% 29% 26% 25% 25% 25% Avonex® 25% 24% 25% Copaxone® 23% 22% 24% Rebif® 21% 21% 21% 20% 20% Betaseron® 5% 5% 1% Tysabri® 0% 2004 2005 2006 2007 7 Note: Based on the last release of all companies (Q3)
Slide 80: What Will Fuel Copaxone's Growth?
What Will Fuel Copaxone’s® Growth? In addition: Level of Differentiation Copaxone® 40mg with increased efficacy Oral Laquinimod® High Medium Long Term Efficacy Efficacy and Short on Safety in Term damage RRMS Low Efficacy and and repair Efficacy Safety in in CIS RRMS Product features and benefits 8
Slide 81: Innovative Long Term Growth
Innovative Long Term Growth Risk-Adjusted Revenues $4 – 5 B $3 B $1.8 B* 2007 2012 2015 9 * In-Market Sales
Slide 82: The Future of Teva's Innovative Business
The Future of Teva’s Innovative Business $3 Billion in risk-adjusted revenues by 2012 Strong growth of Copaxone® and Azilect® Building a portfolio that drives growth past 2012 Leveraging Teva’s expertise, capabilities, synergies Extending our capabilities into additional focused therapeutic areas 10
Slide 83: Biogenerics
Biogenerics Amir Elstein Executive VP, Global Resources Teva Pharmaceutical Industries Ltd. February 21, 2008
Slide 84: 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 85: Key Themes
Key Themes Biopharmaceuticals – huge potential Biogenerics – next wave of growth for generics Our strategy – “same for less” Investing for leadership 1
Slide 86: Biopharmaceuticals Predicted Growth
Biopharmaceuticals Predicted Growth CAGR 2007-12 Market size, worldwide Percent $ Billions 615 Total 5 165 Biologics 12 474 94 450 Small molecule 3 380 89 4 85 1990 2007 2012 2 Source: Evaluate Pharma
Slide 87: Biogenerics: Next Generation of Growth for Teva
Biogenerics: Next Generation of Growth for Teva Over $40 billion in current biopharmaceutical sales exposed to generic competition over the next 10 years Higher barriers to entry and attractive returns Aligned with market and social forces through our generic value proposition 3
Slide 88: Biogenerics: Teva Approach and Key Principles
Biogenerics: Teva Approach and Key Principles Reduce cost of development and production to provide affordable Biopharmaceuticals and competitive market position Invest in technologies, infrastructure and capabilities to develop and produce at low cost Leverage existing bioformulation and manufacturi
Slide 89: Our Biogenerics Strategy
Our Biogenerics Strategy Development focus Commercial approach Substitution “Identical” product Same for less “Equivalent” Same clinical but not attributes -- substitutable Early entry IP Opportunistic: “more for less” 5
Slide 90: Investing for Biogenerics Leadership
Investing for Biogenerics Leadership Key success factors Technology platforms Market presence Portfolio Low cost position Teva capabilities CoGenesys value-add Clinical/development Product IP Manufacturing HSA-fusion technology Commercialization Product in development Payor relationships CMC – proce
Slide 91: Biogenerics Strategy – Guiding Principles
Biogenerics Strategy – Guiding Principles Leadership Industry-shaping role Generic value Same for less proposition Invest wisely Organic and inorganic and patiently 7
Slide 92: Modeling Teva
Modeling Teva Dan Suesskind CFO Teva Pharmaceutical Industries Ltd. February 21, 2008
Slide 93: 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 94: 2012 Projected Sales
2012 Projected Sales CAGR - 2 $19.0 – 21.5 B $3.2 – 4.0 B 18 – 23% CAGR 15-18% $5.1 – 5.7 B 18 – 21% $9.4 B International $1.4 B Europe $2.2 B $9.5 – 11.5 B 13 – 17% North $5.2 B America TAPI $0.9 B $0.6 B 1 Note: 2012 totals do not sum; reflect company’s projected overall range
Slide 95: Balanced Business Model – Geographies
Balanced Business Model – Geographies North Europe America 23% 55% 2007 2007 API International 6% 15% North Europe America 27% 51% 2012 2012 API International 4% 18% 2
Slide 96: Balanced Business Model – Businesses
Balanced Business Model – Businesses Generics 75% 2007 2007 Branded API 19% 6% Generics 74% 2012 2012 Branded API 22% 4% 3
Slide 97: Proforma P&L
Proforma P&L 2007 2012 $ Billions Percent $ Billions Percent Sales 9.4 100 19.0 – 21.5 100 Gross Margin 4.9 51.8 >50% R&D 0.6 6.2 <7.5%* SG&A 1.9 20.2 <20% Operating Profit 2.4 25.5 Finance Expenses/Income Tax 0.4 17.0 ** 16 – 19** Net Income 2.0 20.8 3.8 – 4.9 20 – 23 * Initially 7.5%, decreasing t
Slide 98: Closing Thoughts
Closing Thoughts Shlomo Yanai President and CEO Teva Pharmaceutical Industries Ltd. February 21, 2008
Slide 99: 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 100: What You Can Expect From Teva
What You Can Expect From Teva Continuous profitable growth Expanding leadership in key markets Long-term perspective: product portfolio, capacity and service Balanced business model & attractive financial returns 2
Teva Pharmaceutical Industries — Investor Day (February 2008) on 6ix