Recordati S.p.a. · MIL:REC
Recordati — Goldman Sachs Global Healthcare Conference 2015
25 slides from Recordati's conference presentation, Jun 9, 2015
Slide 1: A Specialty Pharmaceutical Group
A Specialty Pharmaceutical Group GOLDMAN SACHS GLOBAL HEALTHCARE CONFERENCE, RANCHO PALOS VERDES, 9 JUNE 2015
Slide 2: A strategy of growth and geographical expansion
A strategy of growth and geographical expansion • An international specialty pharmaceutical group (€ 987.4 m sales in 2014 and 4,000 employees). • Marketing operations in the main European markets, in Russia, Poland Profile and other Central and Eastern European countries, in Turkey, in the U.S.A. a
Slide 3: Extensive geographical footprint
Extensive geographical footprint 3
Slide 4: Geographical breakdown of pharmaceutical revenue
Geographical breakdown of pharmaceutical revenue Other international sales 16.9% (sales to licensees and exports) Italy 22.6% Other W. Europe 2.3% Other CEE 2.9% Portugal 3.5% North Africa 4.0% France 10.8% Spain 6.3% Germany 8.3% Russia, other CIS and Ukraine 6.7% U.S.A. 7.8% Turkey 7.9% Data: Firs
Slide 5: A diversified product portfolio
A diversified product portfolio Other corporate products 13.2% Drugs for rare diseases 13.6% Livazo 2.1% Urorec 5.8% OTC 19.1% Zanipress 6.1% Zanidip 12.3% Subsidiaries’ local product portfolios 23.4% Pharmaceutical chemicals 3.2% Methadone - France 3% Other revenue 1.2% Peptazol® (pantoprazole) - I
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 28 markets: Armenia, Belarus, Belgi
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: Drugs for rare diseases
Drugs 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 in t
Slide 11: A well balanced product pipeline
A well balanced product pipeline NAME ORIGINATOR INDICATION DEVELOPMENT STATUS Approved by a number of VITAROS® Apricus Erectile dysfunction health authorities in Europe Approved in EU CARBAGLU® Recordati Organic acidemias Phase III in U.S.A. CYSTADROPS® Recordati Ocular cystinosis Filed in EU FORTA
Slide 12: A well balanced R&D pipeline (cont'd)
A well balanced R&D pipeline (cont’d) • VITAROS® (alprostadil) is a topically applied cream formulation of alprostadil for the treatment of erectile dysfunction. A patient-friendly form of alprostadil as an alternative to PDE-5 inhibitors for difficult to treat patients. • CARBAGLU® (carglumic acid)
Slide 13: A well balanced R&D pipeline (cont'd)
A well balanced R&D pipeline (cont’d) • CITRAFLEET® is an intestinal evacuant used in preparation for colonoscopy. The objective of the trial is to assess the clinical effectiveness of a split-dose administration schedule compared to that of the current SmPC regimen. • GRASPA® is L-asparaginase enca
Slide 14: First quarter 2015 highlights
First quarter 2015 highlights • Revenue € 275.7 million, up 5.9% • EBITDA € 82.8 million or 30.0% of sales, up 15.9% • Operating income (EBIT) € 73.5 million or 26.6% of sales, up 18.1% • Net income € 52.0 million or 18.8% of sales, up 21.5% • Net debt € 136.8 million, a reduction of € 49.3 million
Slide 15: Main product sales
Main product sales Corporate products including drugs for rare diseases account for 58.4% of revenue (million Euro) 1Q 2015 1Q 2014 Change % Zanidip® (lercanidipine) 33.8 31.3 8.1 Zanipress® (lercanidipine+enalapril) 16.9 15.7 7.3 Urorec® (silodosin) 16.0 14.5 10.8 Livazo® (pitavastatin) 5.9 6.4 (8.
Slide 16: Composition of revenue by geography
Composition of revenue by geography Solid volume growth (million Euro) 1Q 2015 1Q 2014 Change % Italy 60.3 65.1 (7.4) France 28.7 27.8 3.1 Germany 22.2 19.6 13.1 Turkey 21.1 16.4 28.5 U.S.A. 20.7 11.4 81.0 Russia, other CIS countries and Ukraine 18.0 19.6 (8.3) Spain 16.9 17.5 (3.3) North Africa 10.
Slide 17: First quarter 2015 results: further margin growth
First quarter 2015 results Further margin growth (million Euro) 1Q 2015 1Q 2014 Change % Revenue 275.7 260.4 5.9 Gross Profit 187.5 173.4 8.1 as % of revenue 68.0 66.6 SG&A Expenses 93.3 90.0 3.7 as % of revenue 33.9 34.6 R&D Expenses 19.9 20.8 (4.3) as % of revenue 7.2 8.0 Other Income (Expense), n
Slide 18: First quarter 2015 results: operating segments
First quarter 2015 results Operating segments Revenue EBIT Treatments for rare diseases 13.6% Treatments for rare diseases 21,4% Primary & specialty care Primary & specialty care 86.4% 78,6% EBIT margin on sales: Treatments for rare diseases, 42.0% Primary & Specialty care, 24.2% 18
Slide 19: Financial position and Shareholders' equity
Financial position and Shareholders’ equity (million Euro) 31 Mar 2015 31 Dec 2014 Change Cash and short-term financial 187.1 137.0 50.1 investments Bank overdrafts and short-term loans (8.0) (8.6) 0.6 Loans – due within one year (28.3) (28.3) 0.0 Loans – due after one year (287.6) (286.2) (1.4) NET
Slide 20: 2015 targets: assumptions
2015 targets Assumptions • Lercanidipine franchise to remain relatively stable generating sales of between € 160 and € 165 million. • Sales of Urorec® to increase by around 15%. Sales of Livazo® to increase by more than 10%. • First half sales in Italy to be impacted by termination of license agreem
Slide 21: 2017 plan: assumptions
2017 plan Assumptions • Lercanidipine franchise to decline slightly following entry of generic competition for Zanipress®. Sales going forward of around € 140 million. • Sales of Urorec® to reach around € 85 million in 2017. • Sales of Livazo® to exceed € 35 million in 2017. • Other corporate produc
Slide 22: 2015 targets and 2017 plan: objectives
2015 targets and 2017 plan Objectives • Revenue: • Target for 2015 to achieve sales of more than € 1 billion, below original expectations due exclusively to negative FX effect due to devaluation of the rouble. • Plan for 2017 to achieve sales of around € 1,150 million. Organic growth about one half
Slide 23: Financial projections: 2015 targets and 2017 plan
Financial projections 2015 targets and 2017 plan 2014 2015 2017 (million Euro) Actual Targets Plan Revenue 987.4 > 1,000 ± 1,150 Operating income 231.0 ± 250 EBIT margin 25% - 26% (EBIT) Net income Net Income 161.2 ± 175 17% - 18% margin 23
Slide 24: 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 IT Mid Cap and FTSE IT Health Care indexes. Share capital consists of 209,125,156 ordinary (common) shares with
Slide 25: 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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