Laboratorios Farmaceuticos Rovi, S.a. · BME:ROVI
Laboratorios Farmaceuticos Rovi — Q1 2020 Earnings Presentation
25 slides from Laboratorios Farmaceuticos Rovi's earnings presentation, May 2020
Slide 1: First Quarter 2020 Financial Results
F I R S T Q U A R T E R 2 0 2 0 F I N A N C I A L R E S U LT S M AY 2 0 2 0
Slide 2: Disclaimer
Disclaimer • This Presentation has been prepared by Laboratorios Farmacéuticos Rovi, S.A. (the “Company”) and comprises the slides for a presentation concerning the Company and its subsidiaries (the “Group”). For the purposes of this disclaimer, “Presentation” means this document, its contents or an
Slide 3: Operating results
Operating results
Slide 4: Q1 2020 financial results - Highlights
Q1 2020 financial results - Highlights • Operating revenue increased by 23% to €101.0Mn in Q1 2020, driven by the strength of the specialty pharmaceutical business, where sales rose 24%, strongly outperforming the market, and by the toll manufacturing business, which grew by 19%. Total revenue incre
Slide 5: Growth driven by specialty pharma and toll manufacturing businesses
Growth driven by specialty pharma and toll manufacturing businesses… Total operating revenue (€Mn) Operating revenue growth by category (€Mn) 120 120 101,0 +23% 100 82,2 +19% 12,7 80 80 10,7 60 101,0 +24% 88,2 40 82,2 40 71,4 20 0 0 Q1 2019 Q1 2020 Q1 2019 Q1 2020 Specialty pharma Toll manufacturing
Slide 6: …with high profitability
…with high profitability EBITDA (€Mn) and EBITDA margin (%) Net profit (€Mn) 15 19,8% 20% 20 +68% +102% 14,4% 15% 15 10 10% 20,0 10 13,9 5 11,9 5% 5 6,9 0% 0 0 Q1 2019 Q1 2020 Q1 2019 Q1 2020 EBITDA EBITDA margin • EBITDA increased by 68%, from €11.9Mn in Q1 2019 to €20.0Mn in Q1 2020, reflecting a
Slide 7: Heparins, leading the specialty pharmaceutical business
Heparins, leading the specialty pharmaceutical business Prescription-based pharma products sales (€Mn) Heparin franchise sales (€Mn) 80 60% 55,1% 60 +27% 47,6% 60 40% 40 40 79,7 55,6 62,7 20% 39,1 20 20 0 0% 0 Q1 2019 Q1 2020 Q1 2019 Q1 2020 Heparins Heparins/operating revenue • Sales of prescriptio
Slide 8: Well Positioned to Drive Long-Term Leadership in LMWH
Well Positioned to Drive Long-Term Leadership in Low Molecular Weight Heparins (LMWH) LMWH sales (€Mn) Bemiparin sales (€Mn) 60 24,3 25 +43% 53,9 +15% 21,1 6,0 20 +69% 3,5 37,6 +79% 40 29,6 15 16,5 +15% 10 +4% 20 17,6 18,3 21,1 24,3 5 0 0 Q1 2019 Q1 2020 Q1 2019 Q1 2020 Bemiparin Enoxaparin biosimil
Slide 9: Strong growth potential of Enoxaparin Biosimilar Becat
Strong growth potential of Enoxaparin Biosimilar Becat® Strong Commercial Launch with a Clear Strategy Well-Established Network to Minimize Time-to-Market Direct • ROVI launched enoxaparin biosimilar Becat® in Germany (first EU Marketed in Approved in 1 market) in September 2017; in UK, Italy, Spain
Slide 10: Strong performance of the product portfolio (1/2)
Strong performance of the product portfolio (1/2) Neparvis sales (€Mn) Volutsa sales (€Mn) 8 4 +23% 6 +85% 3 4 7,9 2 3,8 3,1 2 4,3 1 0 0 Q1 2019 Q1 2020 Q1 2019 Q1 2020 Medicebran and Medikinet sales (€Mn) 3 • Sales of Neparvis, a specialty product from Novartis launched in December 2016, increased
Slide 11: Strong performance of the product portfolio (2/2)
Strong performance of the product portfolio (2/2) Absorcol, Vytorin and Orvatez sales (€Mn) Hirobriz and Ulunar sales (€Mn) 10 4 +31% 8 3 6 2 9,5 3,8 3,8 4 7,3 1 2 0 0 Q1 2019 Q1 2020 Q1 2019 Q1 2020 Contrast imaging agents sales (€Mn) 10 • Sales of Vytorin®, Orvatez® and Absorcol® increased by 31%
Slide 12: Value added toll manufacturing services
Value added toll manufacturing services Toll manufacturing sales (€Mn) • Toll manufacturing sales increased by 19% to 12.7 million euros in Q1 2020 as 15 a result of the redirection of our toll manufacturing activities strategy towards +19% high-value-added products. • In November 2019, the toll man
Slide 13: ISM Platform Opens Up New Avenues of Growth for ROVI
2 ISM® Platform Opens Up New Avenues of Growth for ROVI Overview Key Company Highlights of ISM® Platform • Internally-developed and patented innovative drug-release technology, ISM®1, which allows for the sustained release of compounds administered by injection Pop PK 2 model & simulations Expected
Slide 14: Guidance 2020
Guidance 2020 2020 operating revenue growth rate Mid-single-digit T HE KEY G ROWTH LEVERS IN 2 0 2 0 Specialty Pharma Business Toll Manufacturing Services Bemiparin Spare capacity in the manufacturing plants Biosimilar of Enoxaparin New customers to be acquired Launches such as Neparvis an
Slide 15: Financial results
Financial results
Slide 16: Good revenue level with outstanding LMWH sales growth
Good revenue level with outstanding LMWH sales growth Total operating revenue (€Mn) LMWH sales (€Mn) 120 +23% 101,0 60 0,2 +43% 53,9 82,2 +19% 12,7 0,6 8,3 80 +1% 10,7 37,6 40 +79% 8,2 29,6 16,5 +27% 40 79,7 20 62,7 +15% 24,3 21,1 0 0 Q1 2019 Q1 2020 Q1 2019 Q1 2020 Prescription products Contrast ag
Slide 17: Gross margin impacted by enoxaparin biosimilar sales and LMWH raw material prices
Gross margin impacted by the increase of enoxaparin biosimilar sales and the increase of LMWH raw material prices Gross profit (€Mn) and Gross margin (%) • Gross profit increased by 18% to €55.2Mn in Q1 2020, the gross margin 57,0% 54,7% showing a decrease of 2.3 pp from 57.0% in Q1 2019 to 54.7%, m
Slide 18: Cost control along with commitment to R&D
Cost control along with commitment to R&D SG&A expenses (€Mn) R&D expenses (€Mn) 30,5% 8 40% 34,1% +10% 30 6 -35% 30% 20 4 20% 30,8 28,0 6,9 10 2 4,5 10% 0% 0 0 Q1 2019 Q1 2020 Q1 2019 Q1 2020 SG&A SG&A/operating revenue • SG&A expenses rose 10% to €30.8Mn in Q1 2020 mainly due to: • a larger volume
Slide 19: EBITDA
EBITDA EBITDA (€Mn) and EBITDA margin (%) EBITDA (€Mn) and EBITDA “pre-R&D” margin (%) 19,8% 30% 30 20% 20 +30% 24,2% +68% 22,9% 25% 25 14,4% 15% 15 20% 20 10% 20,0 10 15% 15 24,5 10% 10 11,9 18,8 5% 5 5% 5 0% 0 0% 0 Q1 2019 Q1 2020 Q1 2019 Q1 2020 EBITDA EBITDA margin EBITDA "pre R&D" EBITDA margin
Slide 20: EBIT
EBIT EBIT (€Mn) and EBIT margin (%) EBIT (€Mn) and EBIT “pre-R&D” margin (%) 15,0% 25% 25 15% 16 19,4% 13% 20% 20 17,6% 9,2% 12 10% 15% 15 +101% +36% 8% 8 15,1 10% 19,6 10 5% 14,4 7,5 4 5% 5 3% 0% 0 0% 0 Q1 2019 Q1 2020 Q1 2019 Q1 2020 EBIT EBIT margin EBIT "pre R&D" EBIT margin "pre R&D" 2019 EBIT
Slide 21: Net profit
Net profit Net profit (€Mn) Net profit “pre-R&D” (€Mn) 15 20 +102% +35% 15 10 10 13,9 18,0 5 13,3 6,9 5 0 0 Q1 2019 Q1 2020 Q1 2019 Q1 2020 • Net profit increased to €13.9Mn in Q1 2020, a 102% rise compared to Q1 2019. • Net profit “pre R&D” increased by 35%, from €13.3Mn in Q1 2019 to €18.0Mn in Q1
Slide 22: Capital expenditure and Free Cash Flow
Capital expenditure and Free Cash Flow Capex evolution (€Mn) Capex breakdown (%) Escuzar 4 facility; 6% Injectables; 21% -10% 3 ISM industrialization; Granada 35% facility; 6% 2 3,3 3,0 Maintenance capex and 1 other; 16% Alcalá facility; 8% San Sebastián de los Reyes 0 facility; 9% • €3.0Mn of capex
Slide 23: Financial debt
Financial debt Debt breakdown by source (%) Debt maturities by year (€Mn) 60 Total debt Financial €76.7Mn liabilities for leases; 26% 40 Bank borrowings; 59% 53,4 Debt with public 20 adminsitration; 15% 9,6 4,5 4,7 4,5 0 2020 2021 2022 2023 2024 onwards • Debt with public administration represented
Slide 24: News-flow 2020
News-flow 2020 Sales of biosimilar of Enoxaparin Specialty Additional new products to be launched Pharma Granting by the competent local authorities of the marketing authorisation of an Enoxaparin biosimilar in 70 countries outside Europe Toll New contracts to be announced manufacturing Risperidone
Slide 25: For further information, please contact
For further information, please contact: Juan López-Belmonte Chief Executive Officer +34 91 3756235 jlopez-belmonte@rovi.es www.rovi.es Javier López-Belmonte Chief Financial Officer +34 91 3756266 javierlbelmonte@rovi.es www.rovi.es Marta Campos Investor Relations +34 91 2444422 mcampos@rovi.es www.
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