Mayne Pharma Group Ltd. · ASX:MYX
Mayne Pharma — Mayne Group — Merger or Acquisition (May 2004)
14 slides from Mayne Pharma's merger presentation, May 3, 2004
Slide 1: ASX cover letter for analyst briefing slides
3 May 2004 Mayne Group Limited ABN 56 004 073 410 Company Announcements Office Australian Stock Exchange Level 21 390 St Kilda Road Level 4 Melbourne Vic 3004 20 Bridge Street Phone 61 3 9868 0767 Sydney NSW 2000 Fax 61 3 9868 0757 Dear Sir Attached please find the slides which will form the basis o
Slide 2: Acquisition of specialist pharmaceutical manufacturing business in Europe
Mayne Group Limited Acquisition of specialist pharmaceutical manufacturing business in Europe 3 May 2004
Slide 3: Global Pharmaceuticals Strategy
Global Pharmaceuticals Strategy Focus on speciality pharmaceuticals: proprietary, branded generic and commodity generic products INTERNAL GEOGRAPHIC ACQUISITION DEVELOPMENT EXPANSION & IN-LICENSING Product pipeline: Product Pipeline Product pipeline • $US 1.6B LMV ü • $US 6.1B local • $US 0.1B LMV ü
Slide 4: Acquisition summary
Acquisition summary Mayne acquired all of the shares of Wasserburger Arzneimittelwerk Dr Madaus GmbH (Wasserburger) from Madaus AG effective 1 May 2004 • Wasserburger is a contract manufacturing business specialising in injectable freeze dried and solution vial products • World class facility locate
Slide 5: Acquisition summary
Acquisition summary • Existing contract business offers immediate EBITA accretion and acquisition ROIC will exceed WACC by FY07 • Wasserburger acquisition is half of cost of building a new facility with much lower levels of risk • Acquisition price approximately € 25 million and Mayne will assume ap
Slide 6: World class capability
World class capability Extensive experience and knowledge amongst workforce • 16 years average tenure management team • 180 full-time equivalent employees (239 staff in total) • Proven ability to tech transfer molecules (both proprietary and generic) Well maintained facility • New building addition
Slide 7: World class facility
World class facility Groninger filler Klee freeze drier Vial washer and tunnel Freeze dried robotic transport cart Note: Pictures illustrate the new production area undergoing final commissioning and validation.
Slide 8: Established profitable contracts in place
Established profitable contracts in place Approximately 30 existing contract customers • Facility manufactures 43 proprietary and generic molecules • Profitable business after full recovery of all overheads • Mayne is committed to retaining these contracts 5 year manufacturing agreement with largest
Slide 9: Meets capacity needs
Meets capacity needs Mulgrave capacity insufficient to meet expected business growth – Freeze dried products: cannot support forecast base business beyond June 2006 – Solution products: ability to support expected growth is limited Wasserburg facility quickly offers needed capacity – ~9m available f
Slide 10: Advantages over alternatives
Advantages over alternatives Buy (Wasserburg facility) Build (Mulgrave or Greenfield) ü û Competency • Experienced workforce and • Significant investment in well-established know-how recruitment and skill development required ü û Time • Following tech transfer, • Building at Mulgrave: approx Mayne p
Slide 11: Financial rationale
Financial rationale EBITA accretive – 2005: EBITA earnings of € 2.0 million in 2005 from existing contracts – 2007: EBITA earnings of € 8 million as production of Mayne products increases – 2007: ROIC of approximately 13% – not possible through “build” scenario and a quick result for a manufacturing
Slide 12: What we are acquiring
What we are acquiring Assets/liabilities • Manufacturing expertise – 180 person team • Customer contracts and accounts receivable • State of the art manufacturing and filling facility • Inspection and packing capabilities • Warehouse • Admin offices • QA laboratories • Land and building • Lease for
Slide 13: Conclusions
Conclusions • A financially attractive, timely, low risk solution to support Mayne’s growth strategy – Half the cost of building a similar facility from scratch – World class manufacturing facility – Existing, EBITA accretive contract business – Exceptional capabilities in manufacturing of freeze dr
Slide 14: Acquisition of specialist pharmaceutical manufacturing facilities in Europe
Acquisition of specialist pharmaceutical manufacturing facilities in Europe 3 May 2004