Diasorin S.p.a. · MIL:DIA
Diasorin — Investor Day (2015)
52 slides from Diasorin's investor day presentation, 2015
Slide 1: DiaSorin Investor Day: Driving our business through innovation 2015-2017
DiaSorin InvestoR Day Driving our business through innovation 2015-2017
Slide 2: Disclaimer
Disclaimer These statements are related, among others, to the intent, belief or current expectations of the customer base, estimates regarding future growth in the different business lines and the global business, market share, financial results and other aspects of the activities and situation rela
Slide 3: What we do
What we do 1 a patient feels sick and refers to the physician. 2 Patient goes to a diagnostic on the basis of lab and a blood symptoms the physician sample is taken suspects a pathology 3 the blood sample is mixed with specifically designed tests in an automated platform 5 Patient goes back to the p
Slide 4: From 2011-2015 to 2015-2017 Plan
From 2011-2015 to 2015-2017 Plan -2 01 5 2 01 1 -2 01 7 2 01 5 investor day 4
Slide 5: Revenues comparison between 2011-2015 Plan and Actual
Revenues comparison between 2011-2015 Plan and Actual 2011-2015 +101 PLan ¤/mln 630- 304 405 680 450 ¤/mln ¤/mln ¤/mln ¤/mln 2009 2010 2011 2012 2013 2014 2015e 2011-2015 +101 actuaL ¤/mln 480- 304 405 440 434 435 444 485* ¤/mln ¤/mln ¤/mln ¤/mln ¤/mln ¤/mln ¤/mln change in revenues vitamin D revenu
Slide 6: Installed base evolution
Installed base evolution +~ 550 * +600 +532 +534 1,665 1,075 +565 128 605 +682 480- 440 435 444 485 5/mln 5/mln 5/mln 5/mln 2,959 3,641 4,078 4,135 4,197 4,207 2009 2010 2011 2012 2013 2014 2015e * data based on 2015 guidance totaL instaLLeD base growth investor day 6
Slide 7: Product Development comparison between 2011-2015 Plan and Actual
Product Development comparison between 2011-2015 Plan and Actual GROWTH BONE INfEcTIOuS STOOL HYPERTENSION +16 2011-2015 & MINERAL dISEASES dIAGNOSTIcS PLan +11 INfEcTIOuS TuMOuR dISEASES MARKERS GROWTH BONE INfEcTIOuS STOOL HYPERTENSION +20 2011-2015 & MINERAL dISEASES dIAGNOSTIcS actuaL +7 INfEcTI
Slide 8: 2015-2017 Plan: Strategic Setting
2015-2017 PLAN: STRATEGIC SETTING
Slide 9: Technology development: yesterday, today, tomorrow
Technology development O R ROW DAY TO M YESTE R T E R DAY Base E S L L e d Y a i a i s o n inst L g e m e nt of i a i s o n xL mana n s i o n of L Pa t i n u ous ex : i n staLLed U con e D base e c tivity o n n L L n n i o n o f Liais ad CLia me o insta x L Las co LiDat he Br Liaiso n conso veraging
Slide 10: Technological full spectrum solution: from small to mega
Technological full spectrum solution: from small to mega automation connectivity Las EGA stanD aLone M IG /B BS LA soLution B S ease Liaison® xs L A IZ E Low focus ID -S oF use of main M competitors Ls market / PO segment with S unmet needs LAB (PoLs & emerging I Z E L S markets) A L S M obsolete in
Slide 11: LIAISON XS: Strategic Positioning
lIAISON XS: Strategic Positioning SmAll-SIzE lAbS / POls < 200,000 TubES / YEAR DIASORIN POSITIONING tests/year ~12,000-24,000 system cost ~50% of Liaison xL reagents & same technical functioning remote consumables of Liaison xL and software connectivity investor day 11
Slide 12: LIAISON XS positioning: POLs in USA
lIAISON XS positioning: POls in uSA total immunoassay market accessible immunoassay value of PoLs market value: Liaison xs is designed to in usa: > 300 $/mln > 260 $/mln provide a reliable and efficient solution for cLia tests in Labs 4% with low volumes, depending high volumes 12% on the specific n
Slide 13: Product Development: today and tomorrow
Product Development O R ROW TO M T E R DAY d high Y E S LiD conso e PLayer: a t i o P n as s ec i a Lty an r K e t By 2017 o u t i n o n t he ma r s routi ne 3 5 C L i a test ty an d h i g h - 130-1 on sP ec i a L ge n o v a tion: a rKers foCUs evera n i n n g m at e g y : L Focus o o f existi tests
Slide 14: Innovative use of existing markers & innovative markers
Innovative use of Existing markers & Innovative markers clinical approach strategy to drive market expansion Prescribers, regulators and Payers demand greater evidence of healthcare value Development of robust and sustained clinical program critical to commercial success innovative use of existing m
Slide 15: Innovative use of existing markers
Innovative use of existing markers cLinicaL areas marKers stuDies in PiPeLine • hypertension • aldosterone, renin, • broader clinical use • heart Failure infectious Diseases, • new clinical indications • chronic Kidney Diseases 1,25 vitamin D, • Diabetes FgF-23… • Pharma-economic • gastroenterology
Slide 16: Practical example of innovative use of existing markers
Practical Example of innovative use of existing markers heart Failure chronic Kidney Diseases vit D 1,25 Pth 1,84 FgF-23 identification of heart Failure Phase and Potential Patients with chronic Kidney Diseases requiring outlook on its evolution a prognostic test of deterioration of renal activity P
Slide 17: Innovative markers
Innovative markers existing markers innovative markers clinical utility accepted Likely but not yet demonstrated/accepted market defined and acknowledged small/not yet exploited competition high Low / not existing Development Linear Challenging risk Limited risk of technical failure more demanding t
Slide 18: Practical example of innovative markers: sclerostin
Pratical example of innovative markers sclerostin - a Protein ProdUCed By oUr Body that redUCes the Bone mass - its deteCtion and qUantitation in BLood might have a diagnostiC UtiLity in high PrevaLenCe CLiniCaL Conditions CharaCterized By Bone mass Loss (e.g. PostmenoPaUsaL osteoPorosis and CKd) ne
Slide 19: Driving business through innovation
Driving business through innovation ma e r s rK rK et a m g t i s ve n x i · e vati te n o · L c h · in · Li i a iso no · Li aiso n x Lo · co a iso n s gy nne nx ctiv L ity (xL La s) investor day 19
Slide 20: 2015-2017 Plan: Market and Products
2015-2017 PLAN: mARKET AND PRODuCTS
Slide 21: IVD market: Immunodiagnostic
IVD market: Immunodiagnostic in vitro Diagnostic (ivD) market immunodiagnostic market value: ~ ¤ 45 billion value: ~ ¤ 8.1 billion POINT OF CARE OTHER ONcOLOGY ANd MOLECULAR ENdOcRINOLOGY MICROBIOLOGY 9% DIAGNOSTIC 7% 12% 26% 6% HEPATITIS HAEMATOLOGY 18% ANd RETROVIRuSES 6% dRuG MONITORING 3% CLINIC
Slide 22: 114 tests: broadest CLIA menu in the world
broadest ClIA menu in the world 114 tests 83 high 31 specialty routine tests tests TORCH MYCOPLASMA VIRAL HEPATITIS REPRODUCTIVE GROWTH TUMOUR MARKERS Toxo IgG Mycoplasma pneumoniae IgG AND RETRoVIRuSES ENDOCRINOLOGY hGH CEA Toxo IgM Mycoplasma pneumoniae IgM HBsAg(2) LH IGF-I Free PSA Toxo IgG Avid
Slide 23: Immunodiagnostic Pipeline: 2015-2017
Immunodiagnostic Pipeline: 2015-2017 area 2015 2016 2017 bone & mineral sclerostin fgf-23 gi stool testing Campylobacter infectious Diseases Bordetella g* 6 to 8 6 to 8 Bordetella a* tests tests PCt ii* h. Pylori igg hCv ii endocrinology *already available on the market investor day 23
Slide 24: IVD market: Molecular Diagnostic
IVD market: molecular Diagnostic in vitro Diagnostic (ivD) market molecular Diagnostic market value: ~ ¤ 45 billion value: ~ ¤ 5.4 billion OTHER HAEMATOLOGY OTHER IMMUNODIAGNOSTIC 9% 6% POINT OF CARE 26% 18% 7% 25% MICROBIOLOGY 6% MOLEcuLAR 12% dIAGNOSTIc ONCOLOGY 60% 15% INfEcTIOuS dISEASES 21% 21%
Slide 25: Onco-Haematology
Onco-Haematology Diasorin strategy • market Leadership on specialties in onco-haematology • development and launch of qualitative onco-haematology tests (e.g. BCr aBL launched in 2014), followed by quantitative tests • the most complete menu to diagnose and monitor the different types of Leukemia by
Slide 26: Molecular Diagnostic Pipeline: 2015-2017
molecular Diagnostic Pipeline: 2015-2017 area 2015 2016 2017 Qualitative PmL-rar 1-3 amL-eto 1 onco-haematology PmL-rar 2 cbF D-e cbF a Quantitative bcr-abL P210 bcr-abL P190 + abL onco-haematology bcr-abL abL PmL-rar 1 + abL PmL-rar 2 + abL PmL-rar 3 + abL investor day 26
Slide 27: 2015-2017 Plan: Business Execution
2015-2017 PLAN: BUSINESS EXECUTION
Slide 28: Technological full spectrum solution: from small to mega
Technological full spectrum solution: from small to mega 500,000 - 1,200,000 AUTOMATION TUbES/yEAr CONNECTIVITy LAS Automation and consolidation: key competitive drivers EGA STAND ALONE M IG Price pressure and focus on /B BS routine testing LA SOLUTION Main competitors focus 200,000 - 500,000 TUbES/
Slide 29: LIAISON XL: stand alone
lIaISON Xl: stand alone MId-SIzE laBS WOrldWIdE 200,000 - 500,000 TUBES / yEar dIaSOrIN POSITIONING > 1,600 LIAISON XL installed at worldwide level, (ex mega/big labs) > 70% of LIAISON XL future intallations investor day 29
Slide 30: LIAISON XL: automation and connectivity
lIaISON Xl: automation and connectivity MEGa-BIG laBS WOrldWIdE 500,000-1,200,000 TUBES / yEar QUEST SONIC NEW STraTEGIC laBCOrP rOCHE dIaGNOSTICS HEalTHCarE ParTNEr dIaSOrIN POSITIONING Alone through LIAISON XL: Specialties In partnership through the connection of the LIAISON XL LAS: Specialties +
Slide 31: Roche
rOCHE MEGa-BIG laBS WOrldWIdE TyPE OF AGrEEMENT # TESTS CLINICAL ArEAS WorLdWide eX CHina and JaPan CooPeration ~ 40 endoCrinoLoGy, HyPertension, inFeCtioUs aGreeMent, WitH Co-eXCLUsivity on MostLy diseases, Bone & MetaBoLisM diasorin sPeCiaLty tests AVAILAbLE MArKET # yEArS TyPE OF TESTS >1,000 MeG
Slide 32: New Strategic Partner
NEW STraTEGIC ParTNEr MEGa-BIG laBS WOrldWIdE TyPE OF AGrEEMENT # TESTS CLINICAL ArEAS distriBUtion aGreeMent in CHina 10 HePatitis and retrovirUses AVAILAbLE MArKET # yEArS TyPE OF TESTS any LaBoratory served By an aUtoMated 10 HiGH roUtine WitH Liaison XL PLatForM oF tHe strateGiC Partner Las Conn
Slide 33: LabCorp
laBCOrP MEGa-BIG laBS WOrldWIdE TyPE OF AGrEEMENT # TESTS CLINICAL ArEAS # LIAISON XL eXCLUsive sUPPLy aGreeMent 16 vitaMin d + inFeCtioUs diseases + > 50 at WorLdWide LeveL endoCrinoLoGy AVAILAbLE MArKET # yEArS TyPE OF TESTS WorLdWide LaBoratories oF LaBCorP 5+ sPeCiaLties investor day 33
Slide 34: Quest Diagnostics
QUEST dIaGNOSTICS MEGa-BIG laBS WOrldWIdE TyPE OF AGrEEMENT # TESTS CLINICAL ArEAS # LIAISON XL sUPPLy aGreeMent startinG WitH 1 Bone & MineraL > 50 at WorLdWide LeveL AVAILAbLE MArKET # yEArS TyPE OF TESTS LaBoratories oF QUest 5 vitaMin d investor day 34
Slide 35: Sonic Healthcare
SONIC HEalTHCarE MEGa-BIG laBS WOrldWIdE TyPE OF AGrEEMENT # TESTS CLINICAL ArEAS # LIAISON XL WorLdWide sUPPLy aGreeMent > 15 Bone & MineraL + inFeCtioUs di- MULtiPLes For every LaB + seases + endoCrinoLoGy ConneCtivity AVAILAbLE MArKET # yEArS TyPE OF TESTS soniC HeaLtHCare LaBoratories 3+ sPeCiaL
Slide 36: Geographic development
Geographic development O r rOw tO M t E r DAY YE S FO C U S on so Me k e y G eoGraP Hies EGIC US · STrAT Markets O N TINUO I O N i n XPANS and C Gions S I O N H e r e I C E IC EXPA N Ut aLL t P H G r A P H o U G H o A D A , CZECh M E G EOGrA g . P o L and) E O H r n · SO e. vant ( ·G t CA L I D ATIO
Slide 37: Europe
Europe CaGr 14a-17e: ~ +6% MArKET DIASOrIN CUrrENT POSITIONING STrATEGy • Mature, stable and highly • Full menu Ce marked • Managing the turnover of Liaison competitive customers to Liaison XL with larger • Large installed base: >2,200 and longer commitments • Ever growing consolidation (~ 50% Liais
Slide 38: USA
USa CaGr 14a-17e: ~ +11% MArKET DIASOrIN CUrrENT POSITIONING STrATEGy • Growing in the range of 2-3% by • Strategic relationship and secure • Managing the turnover of Liaison volumes business within LabCorp, Quest customers with few tests to Liaison Diagnostics and Sonic Healthcare with XL with broa
Slide 39: China
China CaGr 14a-17e: ~ +22% MArKET DIASOrIN CUrrENT POSITIONING STrATEGy • ~ 10,000 CLass ii and iii hospitals • Strong positioning in pre-natal • Continue market leadership • International players are mainly screening: full menu best-in-class in Pre-Natal screening targeting the ~ 8,000 CLass iii an
Slide 40: Japan: Vitamin D approved
Japan: VITaMIN d approved MArKET DIASOrIN CUrrENT POSITIONING STrATEGy • Calcium and Vitamin d deficiency • DiaSorin CLia Vitamin D test • Market awareness and education on more prevalent than in the Us and approved in Japan in April 2015 Vitamin D testing in order to increase Europe prescriptions r
Slide 41: 2015-2017 Plan: Financials
\ 2015-2017 PLAN: FINANCIALS
Slide 42: 2015-2017 Plan Main assumptions
2015-2017 Plan Main assumptions Molecular eUr/Usd Group Price investment exchange Tax Rate Erosion contribution rate to eBitda CLIA ex Vitamin D Vitamin D 1.15 ~ 34.0% ~ 2% 3-5% Slightly below break-even during the period Main foreign Mainly as a result Average discounts granted Long-term strategic
Slide 43: Guidance 2015-2017
Guidance 2015-2017 ¤/MLN 2014a 2017 CAGr rEVENUES 444 550-570 ~ +8.0% CLia ex vitamin d ~ +16.0% vitamin d ~ +2.0% eLisa / ria ~ -8.0% Instruments & other ~ +4.0% Molecular Diagnostics ~ +30.0% EbITDA 160 205-215 ~ +9.5% eBitda Margin 36.1% ~ 37.5% NET rESULT 84 110-114 ~ +10.0% % on revenues 18.9%
Slide 44: M&A: potential targets
M&a: potential targets oPPortUnities Listed and/or Private CoMPanies in tHe Market siZe oF tHe tarGet dePendinG on tHe oPPortUnity MArKET EXPANSION GEOGrAPHICAL EXPANSION COMPANIES WITH A DEVELOPED CUSTOMEr ACQUISITION OF LOCAL DISTrIbUTOrS WHEN bASE ACCESSIbLE WITH THE COMbINED MENU THE MArKET bECO
Slide 45: Annexes
ANNEXES investor day 45
Slide 46: Hepatitis and Retrovirus
Hepatitis and Retrovirus MARKET VOLUMES TREND LATAM 500 NORTH increase in volumes as a result of AMERICA population growth, patients who 200 access the diagnosis of these tests and urbanization in emerging markets WW: ¤ 1.5 Billion PRICE TREND Hepatitis C price erosion following the 350 EUROPE expir
Slide 47: Infectious Diseases (ex Hepatitis and Retrovirus)
Infectious Diseases (ex Hepatitis and Retrovirus) MARKET LATAM 170 NORTH AMERICA VOLUMES TREND infectious diseases increasing in the 300 world as a result of population growth, especially in the Us and LataM (3-5%) WW: ¤ 1.1 Billion as well as in China (>10%) 280 PRICE TREND EUROPE APAC Price pressu
Slide 48: GI Stool Testing
GI Stool Testing MARKET VOLUMES TREND 130 NORTH EUROPE volumes growing at 5-10% CaGr AMERICA 200 H. Pylori and Calprotectin markets growing C. difficile and norovirus tests on PCr are worth ¤ 100 Million WW: ¤ 380 Million Fecal occult Blood test (FoBt) is worth ¤ 50 Million 60 REST OF 350 190 PRICE
Slide 49: Oncology and Endocrinology
Oncology and Endocrinology MARKET LATAM VOLUMES TREND 170 780 NORTH increase of volumes due to higher prevalence AMERICA of diseases, population ageing and lifestyles in urban areas 420 APAC WW: ¤ 2.1 Billion PRICE TREND routine tests: low and stable prices specialty tests: high prices (e.g. aldoste
Slide 50: Bone & Mineral (ex Vitamin D 25 OH)
Bone & Mineral (ex Vitamin D 25 OH) MARKET VOLUMES TREND 110 NORTH REST OF AMERICA expected growth on average of 6% CaGr mostly THE WORLD due to the penetration of the 1,25 oH vitamin d, following the clinical evidence of its usage and 40 the necessity of follow up for patients WW: ¤ 270 million PRI
Slide 51: Bone & Mineral: Focus on Vitamin D 25 OH
Bone & Mineral: Focus on Vitamin D 25 OH MARKET VOLUMES TREND 110 NORTH REST OF AMERICA expected growth on average of 3% CaGr mostly THE WORLD due to unpenetrated markets 40 PRICE TREND WW: ¤ 270 million Price erosion in the Us and in europe due to the increased competitiveness and to reimbursement
Slide 52: DiaSorin
DiaSorin st Diagnostic Specialist