Santen Pharmaceutical Co., Ltd. · TSE:4536
Santen Pharmaceutical — J.P. Morgan Healthcare Conference 2018
29 slides from Santen Pharmaceutical's conference presentation, Jan 8, 2018
Slide 1: Ophthalmology is our singular focus
Ophthalmology is our singular focus Akira Kurokawa President & CEO, Santen Pharmaceutical Co., Ltd. J.P. Morgan Healthcare Conference January 8, 2018
Slide 2: Disclosure Notice
Disclosure Notice • Information given in presentation contains certain forward-looking statements concerning forecasts, projections and plans whose realization is subject to risk and uncertainty from a variety of sources. Actual results may differ significantly from forecasts. • Business performance
Slide 3: Agenda
Agenda Santen Overall High-Potential Ophthalmology Market Santen Business Growth In Summary 3
Slide 4: Santen Overall
Santen Overall Santen
Slide 5: Santen's Core Values
Santen’s Core Values By focusing on ophthalmology, Santen develops unique scientific knowledge and organizational capabilities that contribute to the well-being of patients, their loved ones and consequently to society. 5
Slide 6: To Become a Specialized Pharmaceutical Company with a Global Presence
To Become a Specialized Pharmaceutical Company with a Global Presence ~2013 2014~2017 ~2020 Overseas sales: Become Global Top 3 Rank #5 globally 30％ of total sales Overseas sales: 40~50％ of total sales • Grow business in Asia/EMEA and “ToPharmaceutical Overseas sales: improve profitability Become a
Slide 7: Strategic Progress Over Last 12 Months
Strategic Progress Over Last 12 Months • Strong, faster-than-market consolidated revenue growth: FY17 H1: +13%1 Business • Japan FY17 H1 YoY1 growth: pharma +7% (now #1 in all 5 major categories2); OTC +25% growth • Robust growth continues from overseas businesses in FY17 H1: Asia +24%, EMEA +22%3 •
Slide 8: Santen is a Leading Pharmaceutical Company Specialized in Ophthalmology
Santen is a Leading Pharmaceutical Company Specialized in Ophthalmology Ophthalmology Specialization Growing Global Market Presence • Broad product line-up focused on unmet Annual growth rate of global medical needs +6% ophthalmic market from 2013 to 2020 • Market leader in Japan and Asia Strong m
Slide 9: Santen's Strength
Santen’s Strength High Customer Satisfaction (CS) based on Specialized Expertise and Strong Business Base Specialized Expertise Strong commitment to ophthalmic treatments • Products and services covering total patient care Visualizing onset risk, implementing early diagnosis, providing differentiate
Slide 10: Market Leader in Japan - Success in Eylea Sales
Market Leader in Japan- Success in Eylea Sales* Tremendous Eylea success shows Santen’s strong market position 72.1% Share in Sep 2017 (JPY billions) 8 100% Eylea 7 Others 6 Eylea share 75% 5 4 50% 3 2 25% 1 0 0% Oct.2012 Oct.2013 Oct.2014 Oct.2015 Oct.2016 *Eylea is co-promoted with Bayer Yakuhin,
Slide 11: High Customer Satisfaction and Market Leadership
High Customer Satisfaction and Market Leadership Customer Satisfaction in Japan and Asia Percentage of Doctors Evaluating Santen as #1 or #2 50% 60% 70% 80% Singapore Korea Thailand China Japan Rated #1 CS in Japan for 15 consecutive years High Customer Strong Market Satisfaction Position Realize co
Slide 12: Covering All Ophthalmic Therapeutic Areas
Covering All Ophthalmic Therapeutic Areas As the world’s leading company focused 100% on ophthalmology, we remain dedicated to answering unmet needs and improving patient of quality of life Company Retina Glaucoma Dry eye Infection Allergy Cataract ✓ ✓ ✓ ✓ ✓ ✓ Alcon/Novartis ✓ ✓ ✓ ✓ ✓ ✓ B&L/Valeant
Slide 13: Expanding Global Partnership Alliances
Expanding Global Partnership Alliances Santen is working closely with excellent companies, institutes and academia Chongqing Kerui Pharmaceutical (Group) Co., Ltd. 13
Slide 14: High Potential Ophthalmology Market
High Potential Ophthalmology Market 14
Slide 15: Vision Problems Increasing as World Populations Age
Vision Problems Increasing as World Populations Age World Population Suffering from Visual Impairment Population Aged 65+ 40% US Japan 30% Western Europe ROW Low Vision 246 million China 20% World Blindness 39 million 10% 285 million 0% 1950 1965 1980 1995 2010 2025 2040 2055 15 Source: United Natio
Slide 16: Highest Growth: Asia Region and Glaucoma
Highest Growth: Asia Region and Glaucoma Region Disease Category (USD billions) (USD billions) EMEA Glaucoma N. America CAGR CAGR Retina Asia +6.3% 30.9 Dry Eye +6.3% 30.9 Japan Santen sales to grow by +20% Others Strong product line- Others 26.7 6.7 26.7 up and pipeline (7yr CAGR) 7.4 15% 6.1 9% 6.
Slide 17: Santen Business Growth
Santen Business Growth Santen 17
Slide 18: Steady Earnings Growth with Ophthalmology Specialization
Steady Earnings Growth with Ophthalmology Specialization Santen Exceeding Overall Market Growth of +6.0% CAGR (JPY billions) +10.5% 218.0 195.3 199.1 • Continuous growth in 161.8 146.3 +9.7% Japan • Strong Growth in Asia 43.1 44.0 • Rapid growth in EMEA 39.1 39.7 30.4 FY13 FY14 FY15 FY16 FY17 FCT Do
Slide 19: Continuous growth in Japan – Revenue and OP
Continuous growth in Japan – Revenue and OP Japan Pharmaceuticals OTC Surgical (JPY billions) Sales CAGR OP before R&D +7.4% 135.7 130.0 124.5 CAGR 102.0 105.6 +19.0% 12.9 12.4 10.9 +8.4% CAGR 6.7 +1.6% 6.4 +38.3% 2.7 2.9 2.3 2.4 2.5 60.4 61.7 64.9 47.0 52.5 +0.4% 4.7 5.0 4.0 1.8 0.5 0.5 1.4 0.2 0.3
Slide 20: Strong Growth in Asia – Revenue and OP
Strong Growth in Asia – Revenue and OP (JPY billions) CAGR +12.6% • Santen 5-year revenue CAGR far outgrowing the market 30.0 +27.1% • Good growth and profit 22.5 23.5 generation 16.5 +60.1% 11.5 Asian market 7.1 Sales 4.8 4.9 3.2 OP before R&D 1.1 FY13 FY14 FY15 FY16 FY17 FCT 5-year CAGR (local cur
Slide 21: Asia: Continuous Launch of New Products for Regional Needs
Asia: Continuous Launch of New Products for Regional Needs 2016 (19) 2017 (38) 2018 (≈40) 2019 (≈50) CH KR VN TH MY PH TW SG ID Chart does not include HK regional products from IN BD and future products PK Glaucoma LK Dry eye BN Anti-infection KH OTC MM Others 21 As of October 2017
Slide 22: Rapid growth in EMEA – Revenue and OP
Rapid growth in EMEA – Revenue and OP (JPY billions) Sales CAGR OP before R&D 35.1 • While building Santen’s unique +30.7% sales organization, the company 28.9 26.0 also continues strong sales of acquired Merck products • Now focused on Ikervis market 14.6 penetration / share expansion 12.0 +188.8%
Slide 23: Glaucoma is a Key Growth Driver for Santen
Glaucoma is a Key Growth Driver for Santen Growing • The market is expected to grow substantially and continuously, boosted by aging Market populations • With a strong strategic focus, Santen doubled glaucoma revenue to 53 billion JPY 2x in FY16 over 5 years • Glaucoma is highly profitable • Santen
Slide 24: Glaucoma is a Key Growth Driver for Santen
Glaucoma is a Key Growth Driver for Santen U.S. Demand for Micro-Invasive Global Glaucoma Patient Population Glaucoma Surgery (MIGS) Number of Patients, millions 90.6 80.4 70.1 30.7 Number of Other 27.4 patients 2025 glaucoma 21.3 400,000 Primary 53.0 59.9 open-angle 48.8 glaucoma 2013 2015 2020 CAG
Slide 25: New Growth Opportunity: U.S. Market Entry
New Growth Opportunity: U.S. Market Entry U.S. Market • The largest market in the world: 36% of worldwide ophthalmic pharmaceutical market ($9 billion) 2017* • Continues to drive the expansion of the worldwide market: +7%*, 2016 YoY Santen’s U.S. Market Entry STRATEGY as a specialized ophthalmic pha
Slide 26: Pipeline / Product Development Status (1)
Pipeline / Product Development Status (1) Indication Region Status US P2 DE-117 Glaucoma / P2b/3 (AYAME pivotal study met primary endpoint), Japan EP2 receptor agonist ocular hypertension Filed Asia P3. Plan: 2nd half FY2018 P3 completion DE-126 Glaucoma / US P2b. Plan: Jan~Jun 2018 P2b completion F
Slide 27: Pipeline / Product Development Status (2)
Pipeline / Product Development Status (2) Indication Region Status DE-089 Dry eye Approved China Diquas Plan: FY2018 launch DE-114A epinastine HCl Allergic conjunctivitis Japan P3 (high dose) Asia Approved Cyclokat Severe keratitis in Ikervis patients with dry eye US P2 ciclosporin Others Filed Veka
Slide 28: In Summary, Santen is…
In Summary, Santen is… Specialized in ophthalmology Preparing for business expansion in the U.S. and other regions Pursuing unmet medical needs Developing treatments for all stages of glaucoma in our substantial and high-growth Building high customer satisfaction with franchise customer-oriented str
Slide 29: Santen
Santen A Clear Vision For Life
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