Recordati S.p.a. · MIL:REC
Recordati — Investor Presentation (February 2017)
22 slides from Recordati's investor presentation, February 2017
Slide 1: A Specialty Pharmaceutical Group
A Specialty Pharmaceutical Group FEBRUARY 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) Italy 20.6% Other CEE 2.9% Other W. Europe 3.6% Portugal 3.6% France 10.3% North Africa 3.8% Spain 6.9% U.S.A. 9.1% Russia, other CIS and Ukraine 7.1% Turkey 7.8% Germany 9.1% Data: Full
Slide 5: A diversified product portfolio
A diversified product portfolio Other corporate products 13.4% Drugs for rare diseases 16.2% Livazo® 3.0% Urorec® 7.4% Zanipress® 6.0% OTC 16.1% Zanidip® 9.9% Subsidiaries’ local product portfolios 23.6% Pharmaceutical chemicals 3.5% Ortoton® (methocarbamol) - Germany 3% Other revenue 0.9% Methadone
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: Full year 2016 highlights
Full year 2016 highlights • Revenue € 1,153.9 million, up 10.1% • EBITDA € 371.2 million or 32.2% of sales, up 17.1% • Operating income (EBIT) € 327.4 million or 28.4% of sales, up 17.6% • Net income € 237.4 million or 20.6% of sales, up 19.4% • Net debt € 198.8 million, an increase of € 110.0 milli
Slide 15: Main product sales
Main product sales Corporate products including drugs for rare diseases account for 61.2% of revenue (million Euro) 2016 2015 Change % Zanidip® (lercanidipine) 114.0 115.7 (1.5) Zanipress® (lercanidipine+enalapril) 69.1 65.7 5.2 Urorec® (silodosin) 85.2 68.3 24.8 Livazo® (pitavastatin) 35.1 28.4 23.
Slide 16: Composition of revenue by geography
Composition of revenue by geography Sustained growth (million Euro) 2016 2015 Change % Italy 229.9 204.8 12.2 France 115.1 110.6 4.0 U.S.A. 101.1 82.1 23.2 Germany 101.1 94.8 6.7 Turkey 86.3 74.1 16.5 Russia, other CIS countries and Ukraine 79.5 72.4 9.9 Spain 76.4 72.0 6.2 North Africa 42.3 43.7 (3
Slide 17: Full year 2016 results
Full year 2016 results Further margin growth (million Euro) 2016 2015 Change % Revenue 1,153.9 1,047.7 10.1 Gross Profit 793.0 712.5 11.3 as % of revenue 68.7 68.0 SG&A Expenses 369.2 352.2 4.8 as % of revenue 32.0 33.6 R&D Expenses 83.7 76.7 9,1 as % of revenue 7.3 7.3 Other Income (Expense), net (
Slide 18: Full year 2016 results: operating segments
Full year 2016 results Operating segments Revenue EBIT Treatments for rare diseases 16.2% Treatments for rare diseases 25.5% Primary & specialty care Primary & specialty care 83.8% 74.5% EBIT margin on sales: Treatments for rare diseases, 44.6% Primary & Specialty care, 25.2% (or 26.0% excluding non
Slide 19: Net financial position
Net financial position (million Euro) 31 Dec 2016 31 Dec 2015 Change Cash and short-term financial 138.5 225.5 (87.0) investments Bank overdrafts and short-term loans (15.7) (9.8) (5.8) Loans – due within one year (40.4) (34.5) (5.9) Loans – due after one year (281.1) (269.9) (11.2) NET FINANCIAL PO
Slide 20: Financial projections
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 ± 1,220 ± 1,450 EBITDA 371 ± 410 ± 500 Operating income 327 ± 365 ± 450 (EBIT) Net Income 235 ± 260 ± 325 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 MIB, the FTSE IT Health Care and the STOXX Europe 600, Health Care indexes. Share capital consists of 209,125,1
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