Recordati S.p.a. · MIL:REC
Recordati — Jefferies 2011 Global Healthcare Conference
24 slides from Recordati's conference presentation, Jun 7, 2011
Slide 1: A European specialty pharmaceutical group
A European u opea specialty spec a ty pharmaceutical p a aceut ca group g oup JEFFERIES 2011 GLOBAL HEALTHCARE CONFERENCE, NEW YORK, 7 JUNE 2011
Slide 2: A strategy of growth and geographical expansion
A strategy of growth and geographical expansion • A mid sized pharmaceutical company with a European focus (2800 employees, of which 1400 field force) • R&D in the cardiovascular and urology fields and in treatments for Profile rare diseases • Marketing operations in the main Western European market
Slide 3: Our products are sold in 130 countries
Our products are sold in 130 countries 17 Subsidiaries 8 Branches 105 Countries where Recordati products are sold (under license or exported) 3
Slide 4: A growing presence in emerging markets
A growing presence in emerging markets Portugal 4.8% Spain 4.4% UK 1.1% Germany 8.4% Other W. European countries 2.6% Russia, Turkey, other CEE 11.1% France 17.2% Other international sales 18.4% (sales to licensees and exports) Italy 32.0% Data: First quarter 2011 Pharmaceutical revenue € 189.6 m 4
Slide 5: A richer product portfolio
A richer product portfolio Zanipress 4.5% Urorec 1.9% Other corporate products 7.5% Zanidip 18.0% Orphan drugs 9 9.1% 1% Pharmaceutical chemicals 4.2% Subsidiaries local product Subsidiaries’ Other revenue 2.7% portfolios 52.1% Entact®/Elopram® 6% (escitalopram/citalopram) ‐ Italy Peptazol® (pantopr
Slide 6: Sales development
Sales development Sales growth to accelerate from 5% to 8% over the 2011‐2013 period From € 728 m in 2010 to € 875 m in 2013 • Key growth drivers: • New corporate products: d Urorec® ® (silodosin) ( l d ) Livazo® (pitavastatin) • New N growing i markets k t • Orphan drug business Based on existing b
Slide 7: Urorec (silodosin)
New 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 6 markets: Germany, Spain, Ireland,
Slide 8: Livazo (pitavastatin)
New 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 Su
Slide 9: Lercanidipine franchise
Lercanidipine franchise Zanipress® (lercanidipine+enalapril) Zanidip® (lercanidipine) • SSales l off Zanidip® Z idi ® (l (lercanidipine) idi i ) tto erode d progressively i l over ti time ffollowing ll i it its patent t t expiry at the beginning of 2010. • Sales of Zanipress® (lercanidipine+enalapri
Slide 10: Russia, Ukraine and other C.I.S. markets
New growing markets Russia, Ukraine and other C.I.S. markets Russia has the largest pharmaceutical market in the CEE region, region forecast to grow at a CAGR of 11.6% in the period 2010‐2014. (Jefferies) • Rusfic in Russia and FIC Médical in the other CIS countries to become exclusive Recordati sub
Slide 11: Turkey
New growing markets T k Turkey Turkey remains one of the most promising pharmaceutical markets in Central and Eastern Europe in the long term. (Research and Markets) Pharmaceutical market CAGR estimated at 10‐13% over the 2009‐2014 period. (IMS) • Yeni Recordati delivering excellent sales growth sin
Slide 12: Orphan Europe - A worldwide business
Orphan drugs Orphan Europe ‐ A worldwide business Huge market potential: 5,000 5,000‐7,000 7,000 rare diseases identified for which only 72 orphan drugs are approved. Progressive country introduction of rare disease plans and access to diagnostic tests will stimulate the market for orphan drugs. • S
Slide 13: Orphan drugs
Orphan drugs ADAGEN® (pegademase bovine), indicated in the treatment of SCID‐ADA deficiency CARBAGLU® (carglumic acid), indicated in the treatment of hyperammonaemia due to NAGS deficiency CYSTADANE® (betaine anhydrous), indicated in the treatment of homocystinuria CYSTAGON® (cysteamine bitartrate),
Slide 14: A well balanced R&D pipeline
A well balanced R&D pipeline NAME ORIGINATOR INDICATION DEVELOPMENT STATUS LIVAZO®/ALIPZA® Kowa Dyslipidemia Approved Filed in EU CARBAGLU® CARBAGLU Recordati Organic acidemias Phase h III iin U.S. S NORMOSANG® Recordati Hepatic porphyria Pre‐registration in U.S. NX 1207 Nymox Benign prostatic hyper
Slide 15: 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, is in pre‐registration phase in Europe and i phase in h III clinical li i l development d l t in i the th USA ffor additional dditi l iindications di ti
Slide 16: A well balanced R&D pipeline (cont'd)
A well balanced R&D pipeline (cont’d) • CYSTADROPS® (cysteamine chlorhydrate) are eye drops developed for “ocular manifestations of cystinosis” which cannot be controlled by orally administered cysteamine, t i specially i ll formulated f l t d iin a patient‐friendly ti t f i dl gell form. f A phase
Slide 17: First quarter 2011 highlights
First quarter 2011 highlights Starting a new growth cycle • Revenue € 197.8 million,, up p 6.4%. • Operating income (EBIT) € 44.3 million or 22.4% of sales, up 2.9%. • Net income € 31.4 million or 15.9% of sales,, up p 4.8%. • Acquisition of Procto‐Glyvenol® for the markets of Central and Eastern Eu
Slide 18: Composition of revenue
Composition of revenue New emerging markets, a significant driver of growth (million Euro) 1Q 2011 1Q 2010 Change % Italy 60.6 55.6 9.1 France 32.6 36.9 (11.6) Germany 16.0 15.5 3.3 Portugal 9.1 8.1 11.7 S i Spain 83 8.3 69 6.9 20 2 20.2 United Kingdom 2.1 2.5 (15.9) Other Western European countries
Slide 19: Main product sales
Main product sales Significant growth of new corporate products and orphan drugs (million Euro) 1Q 2011 1Q 2010 Change % Zanidip® (lercanidipine) 35.5 44.2 (19.7) Zanipress® (lercanidipine+enalapril) 8.8 6.4 37.0 Urorec® (silodosin) 38 3.8 ‐ ns n.s. Other corporate products 14.9 13.5 10.6 Orphan dru
Slide 20: First quarter 2011 results
First quarter 2011 results Back to sales and profit growth (million Euro) 1Q 2011 1Q 2010 Change % Revenue 197.8 185.9 6.4 Gross Profit 130.9 126.2 3.8 as % of revenue 66 2 66.2 67 9 67.9 SG&A Expenses 70.9 65.8 7.9 as % of revenue 35.8 35.4 R&D Expenses 15.6 16.4 (4.9) as % of revenue 7.9 8.8 Other
Slide 21: Financial position and Shareholders' equity
Financial position and Shareholders’ equity A very strong balance sheet (million Euro) 31 Mar 2011 31 Dec 2010 Change Cash and short‐term financial 200 1 200.1 161 7 161.7 38 4 38.4 investments Bank overdrafts and short‐term loans (5.9) (3.5) (2.4) Loans – due within one year (16.0) (16.3) 0.3 Loans
Slide 22: 2011 targets, 2012-2013 plan
Financial projections 2011 targets, 2012‐2013 plan Net income to grow by around 10% in 2012 and 2013 2010 2011 2012 2013 (million Euro) Actual Targets Plan Plan Revenue 728 1 728.1 ~ 750 ~ 810 ~ 875 Operating income (EBIT) 154.8 ~160 ~ 170 ~ 185 Net Income 108.6 ~110 ~120 ~132 Based on existing busi
Slide 23: The Recordati share
The Recordati share The Recordati share (ticker REC, Reuters RECI.MI, Bloomberg Last 12 months’ prices: REC IM, ISIN IT 0003828271) has been listed on the Italian Stock Exchange since 1984. It belongs to the FTSE IT Mid Cap and FTSE IT Health Care indexes indexes. Share capital consists of 209,125,1
Slide 24: 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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