Idt Australia Limited · ASX:IDT
Idt Australia — Investor Presentation (March 2015)
28 slides from Idt Australia's investor presentation, Mar 5, 2015
Slide 1: Good Medicine
GOOD MEDICINE iat AjUO SSN [euOSsJed JOS
Slide 2: Safe Harbour
MAR15 For personal use only SAFE HARBOUR This presentation contains forward-looking statements that are subject to risks and uncertainties. Such statements involve known and unknown risks that may cause the actual results, performance or achievements of IDT Australia Ltd to be materially different f
Slide 3: IDT Australia Ltd Investment Proposition
IDT AUSTRALIA LTD INVESTMENT PROPOSITION For personal use only The Business Portfolio of 23 US FDA approved generic drugs In-house proprietary & generic drug development Contract drug manufacturing Drug development services (incl. CMAX, Aust’s biggest clinical trial provider) High tech 12,000m2 faci
Slide 4: IDT Portfolio US Generic Drugs
IDT PORTFOLIO 23 US GENERIC DRUGS For personal use only • Purchased Nov2014, now being moved into IDT facility • Therapeutic areas incl. – Neurology – Infectious diseases – Cardiovascular – Respiratory • Addressable market of $US460m (IMS*) • Rapid path to revenues (12-18 months) for initial cohort
Slide 5: New Products
NEW PRODUCTS For personal use only Product Dose Form Indication Class Aminophylline Tablet Asthma Respiratory Carbidopa & Levodopa Tablet Parkinson's Disease Neurology Ciprofloxacin Tablet Bacterial Infections Infectious Disease Clarithromycin ER Tablet Bacterial Infections Infectious Disease Dexame
Slide 6: New Products cont.
NEW PRODUCTS cont. For personal use only Product Dose Form Indication Class Flecainide Tablet Tachycardia Cardiovascular Fluconazole Tablet Infectious Disease Infectious Disease Leucovorin Tablet Methotrexate Antidote Oncology Methoxsalen Capsule Vitilago Dermatology Mexiletine Capsule Arrhythmia Ca
Slide 7: US Market Re-entry Process, First Products
US MARKET RE-ENTRY PROCESS, FIRST PRODUCTS For personal use only • Product dossiers transferred to IDT ► Tech transfer ► Manufacturing methods to IDT ► Manufacture of stability batches ► FDA notified • Products all long genericized with established markets – predictable volumes & pricing, little ris
Slide 8: First Product Doxazosin
FIRST PRODUCT DOXAZOSIN For personal use only • Materials in house and tablet dies received: entering IDT facility for manufacture Mar15 • Expect it to be generating revenues Jan-Jun16 onwards • Used to treat hypertension (high blood pressure), or to improve urination in men with benign prostatic hy
Slide 9: Second Product Nortriptyline
SECOND PRODUCT NORTRIPTYLINE For personal use only • Will enter IDT facility in next 6-8 weeks, capsules and raw materials ordered • Nortriptyline is a tricyclic antidepressant used for the relief of symptoms of depression • 10mg, 25mg, 50mg and 75mg capsules • US$27m US market for these presentatio
Slide 10: Effect of Operational Leverage
EFFECT OF OPERATIONAL LEVERAGE For personal use only SCENARIO: Organic growth + product registrations Revenue Growth Rate Profit Growth Rate BREAKEVEN Year 1 Year 2 Year 3 Year 4 www.idtaus.com.au 10
Slide 11: Recent Comparable Transactions
RECENT COMPARABLE TRANSACTIONS For personal use only • ANI Pharma purchase of 31 generic assets Nov 2013 – Was toll manufacturer with underutilised assets, now a speciality generic pharma – Market cap $60m to $760m since transaction • Mayne Pharma purchase of Forest Pharma assets Feb 2014 – Expansio
Slide 12: Other Strategic IDT Programs
OTHER STRATEGIC IDT PROGRAMS For personal use only • Temozolomide (US$300m US sales) – ANDA filed Nov 2013 – Mayne distribution – Launch due 2017 • Project Teton (US$80m global sales) – Feasibility studies for manufacture complete – Manufacturing partner selection ongoing – Targeting greater market
Slide 13: Developing Our Own Speciality Generics
DEVELOPING OUR OWN SPECIALITY GENERICS For personal use only $$ MARGIN WITHIN VALUE CHAIN IDT REGISTRATION & SUPPLY DISTRIBUTOR IDT’s current 2% margin share WHOLESALER Available margin up to 40 -50% Example: PROJECT TETON: IDT currently the dominant supplier of active pharmaceutical ingredients for
Slide 14: Who We Manufacture For
For personal use only WHO WE MANUFACTURE FOR
Slide 15: Our Customers Are World Leaders
OUR CUSTOMERS ARE WORLD LEADERS For personal use only www.idtaus.com.au 15
Slide 16: Creating World Leading Products
CREATING WORLD LEADING PRODUCTS For personal use only SENSITIZING DRUGS ANTI–CANCER DRUGS HORMONES CARBOHYDRATE DRUGS HIGH CONTAINMENT TABS/CAPS HIGH CONTAINMENT TAB COATING www.idtaus.com.au 16
Slide 17: That We Make Into Medicines for a Global Market
THAT WE MAKE INTO MEDICINES FOR A GLOBAL MARKET For personal use only TEMOZOLOMIDE ACETAZOLAMIDE THIOTEPA THALIDOMIDE MITOXANTRONE ERTAPENEM PENTOSAN www.idtaus.com.au 17
Slide 18: Medicines Made in Our Melbourne Facility
MEDICINES MADE IN OUR MELBOURNE FACILITY For personal use only $75m advanced manufacturing facility 12,000m2 state-of-the-art Current 10-15% capacity utilisation Large scope for growth without need for major CAPEX or additional site support costs Ability to manufacture from gram to tonnage scale + a
Slide 19: Trialed in Our Clinical Unit
TRIALED IN OUR CLINICAL UNIT For personal use only CMAX clinical trials facility Established 1993 Australia’s oldest, largest, most experienced clinical trials unit 50 bed clinical unit located at Royal Adelaide Hospital Uses services of RAH – Ethics Committee, medical specialists & services FDA ins
Slide 20: A Prescription for Growth
For personal use only A PRESCRIPTION FOR GROWTH
Slide 21: Move from Making to Marketing
MOVE FROM MAKING TO MARKETING For personal use only www.idtaus.com.au 21
Slide 22: Good Medicine & Higher Returns for IDT
GOOD MEDICINE & HIGHER RETURNS FOR IDT For personal use only SELL MORE EXISTING PRODUCTS EXTRACT MORE PROFITS • High fixes costs = operational leverage. • Extract more profits from those products to improve • As a result, profits will rise faster than revenues past our share of the value chain. brea
Slide 23: Highlights of the Past Year
HIGHLIGHTS OF THE PAST YEAR For personal use only ACQUISITIONOF GENERIC US DRUG PORTFOLIO Transformative step for the company, rapid return to profitability BUILD IN-HOUSE DRUG PORTFOLIO Filed first IDT ANDA for temozolomide Temozolomide US distribution deal with Mayne Pharma – milestones & profit s
Slide 24: Board & Management in Place to Deliver
BOARD & MANAGEMENT IN PLACE TO DELIVER For personal use only MANAGEMENT TEAM BOARD Dr Paul D R MacLeman (CEO & MD) Graeme Kaufman (Chairman) Deb Cailes (Market Access) Dr Paul D R MacLeman (MD) Jane Kelly (Clinical) Geoff Lord (Vice Chairman) Joanna Johnson (CFO) Dr Graeme Blackman (NED) Stéphane Re
Slide 25: Financially Positioned to Deliver
FINANCIALLY POSITIONED TO DELIVER For personal use only FINANCIALS MARKET CAP $26.7m (05Mar15) 2013 2014 REVENUE $13.4m $13.4m EBIT* ($4.4m) ($6.0m) CASH BALANCE $0.6m $2.4m DEBT** $1.9m $0.1m *After one-off charges CAPITAL STRUCTURE ** $3m unused debt facility available SHARES ON ISSUE 191.1M UNLIS
Slide 26: Target 2015 Milestones
TARGET 2015 MILESTONES For personal use only INCREASED 2014/15 ORGANIC SALES GROWTH MOVEMENT OF AN ADDITIONAL INTERNAL PRODUCT TOWARDS MARKET PROGRESS WITH RE-COMMERCIALISATION OF ACQUIRED US PRODUCTS MOVE FROM SERVICE PROVIDER TOWARDS PROFITABLE SPECIALTY GENERICS PHARMA COMPANY, GROWTH & PROFITS w
Slide 27: Contact Us
CONTACT US For personal use only Dr Paul D R MacLeman MANAGING DIRECTOR +61 (0) 3 9801 8888 info@idtaus.com.au www.idtaus.com.au Follow Us on Twitter @IDTAus www.idtaus.com.au 27
Slide 28: Questions and Answers
For personal use only QUESTIONS AND ANSWERS