Recordati S.p.a. · MIL:REC
Recordati — London Star Company Presentations 2005
27 slides from Recordati's conference presentation, Oct 14, 2005
Slide 1: A European Specialty Pharmaceutical Company
A European Specialty Pharmaceutical Company London Star Company Presentations 2005 London, 14 October 2005
Slide 2: Company profile
Company profile • A fully integrated pharmaceutical company listed on the Italian Stock Exchange since 1984 • Original research focused on cardiovascular and urological fields • Direct operations in Italy, France, Germany, Greece, Spain and the UK covering a broad range of therapeutic areas • Propri
Slide 3: Breakdown of pharmaceutical revenue
Breakdown of pharmaceutical revenue Spain 7% International licensees Germany 19% 10% Total revenue Pharmaceuticals France 92% 22% Italy 42% Data: First half 2005 Total revenue € 296 m Pharmaceutical Pharmaceutical revenue € 272 m chemicals 8% 2
Slide 4: Main products
Main products Proprietary In-Licensed Breakdown of first half 2005 pharmaceutical sales (€ 272 m) Branded Generics Neo Codion (codeine Nitrocor Methadone Isocef Abufene cough mix.) (nitro.T.P.) Octegra (ceftibuten) (β-alanine) Suplasyn Exomuc (moxi- Cidine Claversal Lomexin (hyaluronic (acetylcystei
Slide 5: ZANIDIP (lercanidipine)
ZANIDIP® (lercanidipine) • Latest generation calcium-channel blocker. Lipophilic dihydropyridine. • Natural once a day. Potent, long-lasting vasodilatory activity. Highly vasoselective with gradual onset, smooth and uniform blood pressure lowering activity. • Efficacy as best in class. Significantly
Slide 6: Lercanidipine launch status
Lercanidipine launch status • Launched in 72 countries, approximately one third of world market for calcium channel blockers • Major European launches • 1998 Italy, Spain, UK • 2000 Germany • 2001 France • Approved in additional 22 countries • Filed for approval in additional 14 countries 5
Slide 7: Lercanidipine as a % of all calcium channel blockers
Lercanidipine as a % of all calcium channel blockers Bubble size represents $ market value of CCB’s 20 France Germany % share of CCB market 15 Australia Italy Austria S.Korea 10 Spain Belgium U.K. 5 Holland 0 0 4 8 12 16 20 24 28 32 Source: IMS data - 2Q 2005 Quarters from launch 6
Slide 8: R&D pipeline
R&D pipeline Pre Phase II Filed for Discovery Phase I Phase III Clinical P.O.C. approval Zanipress® fentanyl patch prulifloxacin rupatadine silodosin stannsoporfin pitavastatin REC 0545 lercanidipine MR REC 2615 REC 0765 REC 0206 REC 0035 3 new projects Project S 7
Slide 9: ZANIPRESS
ZANIPRESS® • Lercanidipine-enalapril fixed combination for the treatment of hypertension • New aggressive targets for blood pressure control • Combination of drugs needed for most patients • Patient compliance • Fixed combinations will play a significant role in the future hypertension market • File
Slide 10: Lercanidipine life cycle management
Lercanidipine life cycle management • 20mg strength approved in Europe and other countries. Launched in 13 countries, roll-out continues • Modified release formulation under development with Forest Labs for the U.S. market • Agreements with LifeCycle Pharma and Eurand for the development of modified
Slide 11: Fentanyl transdermal patch
Fentanyl transdermal patch • Central-acting potent analgesic to treat moderate to severe chronic pain such as that experienced in cancer • Transdermal patch designed to deliver fentanyl through the skin for up to three days • Originator: Lavipharm • Market of reference: class N2A sales in the 5 majo
Slide 12: Rupatadine
Rupatadine • Latest generation systemic antihistamine indicated for the treatment of allergies • Originator: Uriach • Market of reference: class R6A sales in the 5 major EU pharma markets, approx. € 700 million. • Launched in Spain (Alergoliber®), further launches expected by 2007 11
Slide 13: Silodosin
Silodosin • Selective alpha-1A receptor antagonist indicated for the treatment of symptoms associated with benign prostatic hyperplasia • Benign prostatic hyperplasia increasing in frequency due to the progressive ageing of the population • Originator: Kissei • Market of reference: class G4C Europea
Slide 14: Stannsoporfin
Stannsoporfin • Inhibits the production of bilirubin in cases of hyperbilirubinemia of different origin. Under development by InfaCare for the treatment of neonatal hyperbilirubinemia (jaundice). • Severe hyperbilirubinemia, if untreated, can lead to severe brain damage. If approved, stannsoporfin c
Slide 15: Rec 0545
Rec 0545 • Rec 0545 is a potent and selective antagonist of the 5-HT1A serotoninergic receptor under study for the treatment of overactive bladder and incontinence • A completely new approach for controlling overactive bladder. Increases bladder volume capacity (or time between micturitions) without
Slide 16: Other urogenital programs
Other urogenital programs • Potent antagonists of the α1-adrenergic receptors, highly selective for the lower urogenital tract, were pioneered by Recordati and are potentially useful in the development of treatments for benign prostatic hyperplasia (BPH) • Two other potential biological targets for
Slide 17: First half 2005 operational highlights
First half 2005 operational highlights • Revenue up 17.4%, or 9.9% on a like-for-like basis • Pharmaceutical sales up 20.5%, or 12.2% on a like-for-like basis • International sales up 30.5% • Lercanidipine sales up 19.6% • Operating income up 24.2% (before goodwill amortization) • Net income up 23.9
Slide 18: Composition of revenue
Composition of revenue (million euro) 1H 2005 1H 2004 Change % PHARMACEUTICALS 272.4 226.0 20.5% 91.9% 89.5% PHARMACEUTICAL 24.0 26.4 (9.0)% CHEMICALS 8.1% 10.5% TOTAL 296.4 252.4 17.4% 100.0% 100.0% ITALY 116.3 114.4 1.7% 39.2% 45.3% INTERNATIONAL 180.1 138.0 30.5% 60.8% 54.7% 17
Slide 19: Sources of growth
Sources of growth (% change, first half 2005 over first Volume Price Exchange Total half 2004) PHARMACEUTICALS 19.3% (7.0)% (0.1)% 12.2% like-for-like MERCKLE RECORDATI 100.0% 100.0% SOPHARTEX (100.0)% (100.0)% PHARMACEUTICAL (5.3)% (2.0)% (1.7)% (9.0)% CHEMICALS TOTAL CHANGE 23.9% (6.3)% (0.2)% 17.
Slide 20: Composition of pharmaceutical revenue
Composition of pharmaceutical revenue (million euro) 1H 2005 1H 2004 Change % Italy 113.5 110.8 2.5% France 60.8 49.7 22.5% Germany 26.5 - n.a. Spain 18.7 11.8 57.9% International licensees 52.8 46.8 12.9% Sophartex * - 6.9 (100.0)% TOTAL PHARMACEUTICALS 272.4 226.0 20.5% * Sold in April 2004 19
Slide 21: Lercanidipine sales
Lercanidipine sales (million euro) 1H 2005 1H 2004 Change % Italy 22.6 19.6 15.3% France 14.2 10.9 30.7% Spain 3.1 2.4 28.0% DIRECT SALES 39.9 32.9 21.3% 55.6% 54.8% SALES TO LICENSEES 31.9 27.1 17.4% 44.4% 45.2% TOTAL LERCANIDIPINE 71.8 60.0 19.6% SALES 100.0% 100.0% 20
Slide 22: First half results
First half results (million euro) 1H 2005 1H 2004* Change % Revenue 296.4 252.4 17.4% Gross Profit 190.7 158.1 20.6% as % of revenue 64.3% 62.7% Selling Expenses 101.8 84.8 20.1% as % of revenue 34.4% 33.6% R&D Expenses 22.1 18.2 as % of revenue 7.4% 7.2% 21.5% Operating Income 54.8 44.1 (before goo
Slide 23: Capital employed
Capital employed (million euro) 30 June 2005 31 December 2004 33.6 72.1 Net working capital for operations 58.0 Net non-current 44.7 assets 285.8 265.0 Net cash 194.2 Shareholders’ 148.2 Equity (before hedging reserve of € -3.2 m end 2004 and € -4.1 m end June 2005) Capital employed: 192.9 Capital e
Slide 24: Net financial position
Net financial position (million euro) 30 Jun 2005 31 Dec 2004 Change Cash and short-term financial investments 186.6 232.2 (45.6) Short term bank debt (9.1) (3.5) (5.6) Current portion of medium and long-term (24.6) (25.2) 0.6 debt Medium and long term debt (119.3) (131.4) 12.1 NET FINANCIAL POSITIO
Slide 25: Company strategy
Company strategy ¾ Confirm commitment to research and development in the urological and cardiovascular fields ¾ Acquire new product licenses ¾ Expand geographical presence in Europe 24
Slide 26: Breakdown of the European pharmaceutical market
Breakdown of the European pharmaceutical market (EU 25 countries) Portugal Other EU Sweden Austria 1.9% 7.0% Greece 2.3% 1.9% Poland 2.5% Belgium 2.8% 3.0% Netherlands 3.2% Germany 20.8% Spain 9.3% U.K. 13.0% France 19.1% Italy 13.2% Source: IMS 2003 data 25
Slide 27: Forward-looking statements
Statements contained in this presentation, other than historical facts, are “forward- “forward-looking statements” (as such term is defined in the Private Securities Litigation Reform Act of 1995). 1995). These statements are based on currently available information, on current best estimates, and o