Kyowa Kirin Co., Ltd. · TSE:4151
Kyowa Kirin — Kyowa Hakko Kirin — Q1 2017 Earnings Presentation
27 slides from Kyowa Kirin's earnings presentation, 2017
Slide 1: Results Presentation Fiscal 2017 First Quarter
Results Presentation Fiscal 2017 First Quarter Kyowa Hakko Kirin Co., Ltd. © Kyowa Hakko Kirin Co., Ltd.
Slide 2: Agenda
Agenda FY 2017 Q1 highlights Financial review Kazuyoshi Tachibana, Managing Executive Officer R&D review Mitsuo Satoh, Executive Officer Vice president, Head of R&D Division Business topics Masashi Miyamoto, Managing Executive Officer Director, Corporate Strategy & Planning Dept. Q & A session © Kyo
Slide 3: Forward-looking statements
Forward-looking statements This document contains certain forward-looking statements relating to such items as the company’s (including its domestic and overseas subsidiaries) forecasts, targets and plans. These forward-looking statements are based upon information available to the company at the pr
Slide 4: FY 2017 Q1 Highlights
FY 2017 Q1 Highlights In Q1 of FY 2017, sales and profits increased in the Pharmaceuticals business YoY, while they declined in Bio-Chemicals business YoY. The consolidated sales and profits increased YoY and they saw a steady progress in line with 2017 business plan. Despite well-performing sales
Slide 5: Financial review
Financial review © Kyowa Hakko Kirin Co., Ltd. 5
Slide 6: Summary of 2017 Q1 results (consolidated)
Summary of 2017 Q1 results (consolidated) In Q1 of 2017, sales and profits increased, with sales growth of ¥ 2.4 billion and operating income growth of ¥ 6.1 billion. FY2016 Q1 FY2017 Q1 (Unit: ¥bn) Change results results Net sales 88.4 90.9 +2.4 ( +3%) Operating Income 8.5 14.7 +6.1 (+73%) [Operati
Slide 7: Analysis of YoY net profit changes
Summary of FY2017 Q1 consolidated results: Analysis of YoY net profit changes (¥bn) 2017 Q1 net profit: + 1 billion Yen (2016) Gain on sales of fixed assets -2.1 (2016) Gain on forgiveness of debts -1.3 Pharma +2.1 Bio-chemicals -0.0 Pharma +4.9 Bio-Chemicals -0.5 FY2016 Gross SG&A Non-o
Slide 8: Summary of FY2017 Q1 financial results by segment
Summary of FY2017 Q1 financial results by segment The overall Pharmaceuticals business had increased in sales and profits mainly due to the increase in technology licensing revenue, despite a sales drop in Japan caused by drug price revision and penetration of generics into the market. The Bio-Chemi
Slide 9: Pharmaceuticals business: Analysis of YoY changes, Sales
Pharmaceuticals business: FY2017 Q1 Analysis of YoY changes Domestic pharmaceutical products -2.4 Sales • Our key product NESP® decreased in sales due +3.4 billion Yen to the impact of drug price revision, etc. (¥bn) (currency effect -1.7) • Sales of long-term prescription products such as ALLELOC
Slide 10: Pharmaceuticals business: Analysis of YoY changes, Operating income
Pharmaceuticals business: FY2017 Q1 Analysis of YoY changes Operating income +7.0 billion Yen (currency effect +0.1) Gross profits +4.9 (currency effects -1.3) • Increase in technology licensing revenue (¥bn) SG&A +0.2 (currency effects +1.2) • Increase in costs related to Moventig and product l
Slide 11: Pharmaceuticals business: Domestic sales of key products
Pharmaceuticals business: Domestic sales of key products Despite the sluggish sales of key product NESP® and long-term prescription products including ALLELOCK®, the significant increase of technology licensing revenue boosted overall Japan sales. FY2016 FY2017 Product name FY2017 Rate of Q1 Q1 Chan
Slide 12: Bio-Chemicals business: Analysis of YoY changes, Sales
Bio-Chemicals business: FY2017 Q1 Analysis of YoY changes Overseas sales -0.6(currency effect -0.3) Sales -0.8 billion Yen • Americas -0.4 (currency effect -0.0) (currency effect -0.3) (¥bn) Decrease in sales of health-food materials and sales of amino acids for cell culture medium • Europe -0.1
Slide 13: Bio-Chemicals business: Analysis of YoY changes, Operating income
Bio-Chemicals business: FY2017 Q1 Analysis of YoY changes Operating income -0.6 billion Yen (currency effect -0.1) Gross profits -0.5 (currency effects -0.1) (¥bn) • Decrease in sales SG&A -0.1 (currency effects +0.0) R&D expenses +0.0 (currency effects +0.0) FY2016 Gross SG&A R&D FY2017 Q1 pr
Slide 14: R&D review
R&D review © Kyowa Hakko Kirin Co., Ltd. 14
Slide 15: Key development events in 2017 (Domestic)
Key development events in 2017 Domestic: Announcement of top-line results of phase 3 clinical study of evocalcet (KHK7580) targeting secondary hyperparathyroidism (January) Application for approval of benralizumab (KHK4563) targeting asthma* (February) Announcement of top-line results of phase
Slide 16: Key development events in 2017 (Overseas)
Key development events in 2017 Overseas: Approval received for darbepoetin alfa (KRN321) targeting anemia with myelodysplastic syndrome (February, Singapore) Application for approval of brodalumab (KHK4827) targeting psoriasis (February, Taiwan) Approval received for romiplostim (AMG531) targe
Slide 17: Key global development updates (1) mogamulizumab, hematological cancer
Key global development updates (1) mogamulizumab/KW-0761 (hematological cancer) 1 Development stage Country/ (Scheduled trial completion date) Estimated Indication enrollment region Phase 2 Phase 3 Application 3 Relapsed/ ATL refractory U.S., Europe, others (2017/12) 71 4 Relapsed/ CTCL refractory U
Slide 18: Key global development updates (2) mogamulizumab, solid tumor
Key global development updates (2) mogamulizumab/KW-0761 (solid tumor) Development stage Country/ ConcomitantDevelopment Country/Concomitant stage (Scheduled trial completion date) Estimated Estimated Indication region Indication Drug (Scheduled trial completion date) Partner Partner enrollment regi
Slide 19: Key global development updates (3) Burosumab/KRN23
Key global development updates (3) Burosumab/KRN23 Development stage Development stage (Scheduled trial completion date) Estimated Indication Country/region trial completion date) Partner Estimated Indication Country/region (Scheduled Phase 2 Phase 3 Partner enrollment enrollment Phase 2 Phase 3 U.S
Slide 20: Key global development updates (4) burosumab/KRN23
Key global development updates (4) burosumab/KRN23 Development stage Development stage (Scheduled trial completion date) Estimated Indication Country/region (Scheduled trial completion date) Partner Estimated Indication Country/region Phase 2 Phase 3 Partner enrollment enrollment Phase 2 Phase 3 3 U
Slide 21: Business topics
Business topics © Kyowa Hakko Kirin Co., Ltd. 21
Slide 22: Maximize product value of benralizumab
Maximize product value of benralizumab Signed the agreement with AstraZeneca for the exclusive rights of Asthma and COPD in Asia to maximize the product value of benralizumab/KHK4563 $ 15 million upfront payment Regulatory and commercial milestone payments Low-double digits sales royalties E
Slide 23: List of acronyms
List of acronyms ATL Adult T-cell Leukemia/Lymphoma COPD Chronic Obstructive Pulmonary Disease CTCL Cutaneous T-Cell Lymphoma ENS Epidermal Nevus Syndrome TIO Tumor Induced Osteomalacia XLH X-linked Hypophosphatemia © Kyowa Hakko Kirin Co., Ltd. 23
Slide 24: Appendix
Appendix © Kyowa Hakko Kirin Co., Ltd. 24
Slide 25: Biosimilar products development
Biosimilar products development Development Reference bio medical product Development stage Country/region code Generic name Brand name Phase 1 Phase 2 Phase 3 1 FKB327 adalimumab HUMIRA U.S., others 2 FKB238 bevacizumab Avastin U.S., Europe, others Not Not Not Not Target product disclosed disclosed
Slide 26: FOREX: average rate and currency effects
FOREX Period average rate Average exchange 2016 Q1 2017 Q1 FY2017 Change rate Results Results Forecast ¥/$ 117 115 -2 110 ¥/€ 128 122 -6 120 ¥/£ 169 143 -26 140 FY2017 Q1 currency effects (YoY) Segment Currency Net sales Operating income $ -¥0.07bn -¥0.01bn Pharmaceuticals business € -¥0.01bn -¥0.01
Slide 27: Contact information
The Kyowa Hakko Kirin Group companies strive to contribute to the health and well-being of people around the world by creating new value through the pursuit of advances in life sciences and technologies. If you have any inquiries regarding this presentation, please call: Corporate Communications Dep