Recordati S.p.a. · MIL:REC
Recordati — Jefferies 2016 London Healthcare Conference
22 slides from Recordati's conference presentation, November 2016
Slide 1: A Specialty Pharmaceutical Group
A Specialty Pharmaceutical Group JEFFERIES 2016 LONDON HEALTHCARE CONFERENCE
Slide 2: A strategy of growth and geographical expansion
A strategy of growth and geographical expansion • An international specialty pharmaceutical group (€ 1,047.7 m sales in 2015 and 4,000 employees). • Marketing operations in the main European markets, in Russia, Poland Profile and other Central and Eastern European countries, in Turkey, in the U.S.A.
Slide 3: Extensive geographical footprint
Extensive geographical footprint 3
Slide 4: Geographical breakdown of pharmaceutical revenue
Geographical breakdown of pharmaceutical revenue Other international sales 16.0% (sales to licensees and exports) Italy 20.6% Other CEE 3.0% Other W. Europe 3.3% Portugal 3.5% France 10.2% North Africa 4.1% Russia, other CIS and Ukraine 6.7% U.S.A. 9.3% Spain 6.7% Turkey 7.9% Germany 8.7% Data: Firs
Slide 5: A diversified product portfolio
A diversified product portfolio Other corporate products 13.3% Drugs for rare diseases 16.3% Livazo® 3.1% Urorec® 7.3% Zanipress® 5.9% OTC 16.4% Zanidip® 10.5% Subsidiaries’ local product portfolios 22.8% Pharmaceutical chemicals 3.5% Ortoton® (methocarbamol) - Germany 3% Other revenue 0.9% Methadon
Slide 6: Core corporate products: Zanipress and Zanidip
Core corporate products Zanipress® (lercanidipine+enalapril) Zanidip® (lercanidipine) • Lercanidipine is a proprietary latest generation calcium channel blocker indicated for the treatment of hypertension. Enalapril is an ACE inhibitor indicated for the treatment of hypertension. • Sales of Zanidip®
Slide 7: Core corporate products: Urorec (silodosin)
Core corporate products Urorec® (silodosin) • Highly selective α1A receptor antagonist indicated for the treatment of symptoms associated with benign prostatic hyperplasia (BPH). • Fast onset of action. High efficacy. Very good cardiovascular safety. • Launched in 32 markets: Armenia, Azerbaijan, Be
Slide 8: Core corporate products: Livazo (pitavastatin)
Core corporate products Livazo® (pitavastatin) • Highly effective HMG-CoA reductase inhibitor indicated for the treatment of hypercholesterolaemia. • Thanks to its unique chemical structure Livazo® is a potent LDL-lowering drug with a consistent and progressive HDL-raising effect. (Atherosclerosis S
Slide 9: Drugs for rare diseases: a worldwide business
Drugs for rare diseases A worldwide business Huge market potential: > 6,000 rare diseases identified for which treatments exist for only around 300. Progressive country introduction of rare disease plans and access to diagnostic tests will stimulate the market for orphan drugs. • Acquisition of Orph
Slide 10: Treatments for rare diseases
Treatments for rare diseases NORMOSANG® (EU-RoW) /PANHEMATIN® (US) (human haemin), used to treat acute attacks of hepatic porphyria CARBAGLU® (carglumic acid), indicated in the treatment of hyperammonaemia due to NAGS deficiency and to the main organic acidemias COSMEGEN® (dactinomycin), used mainly
Slide 11: A well balanced product pipeline
A well balanced product pipeline NAME ORIGINATOR INDICATION DEVELOPMENT STATUS Approved by a number of VITAROS® Apricus Erectile dysfunction health authorities in Europe Variation of EU approval FORTACIN™ Plethora Solutions Premature ejaculation completed Corneal cysteine crystal deposits in patient
Slide 12: A well balanced R&D pipeline (cont'd)
A well balanced R&D pipeline (cont’d) • VITAROS® (alprostadil) is a topically applied cream formulation of alprostadil for the treatment of erectile dysfunction. A patient-friendly form of alprostadil as an alternative to PDE-5 inhibitors for difficult to treat patients. • FORTACIN™ (lidocaine+prilo
Slide 13: A well balanced R&D pipeline (cont'd)
A well balanced R&D pipeline (cont’d) • Methadone, currently used in France, where it is distributed by Bouchara Recordati, as replacement therapy for major opioid drugs dependence. In 2012 Recordati started, in France, an open, multicenter, randomized, national Phase III b clinical study on methado
Slide 14: First nine months 2016 highlights
First nine months 2016 highlights • Revenue € 862,4 million, up 9.9% • EBITDA € 280,0 million or 32.5% of sales, up 16,4% • Operating income (EBIT) € 252,4 million or 29.3% of sales, up 18,5% • Net income € 182,3 million or 21,1% of sales, up 19,5% • Net debt € 100,2 million, an increase of € 11,4 m
Slide 15: Main product sales
Main product sales Corporate products including drugs for rare diseases account for 61.7% of revenue (million Euro) Jan-Sep 2016 Jan-Sep 2015 Change % Zanidip® (lercanidipine) 90.0 89.9 0.1 Zanipress® (lercanidipine+enalapril) 50.8 49.8 2.0 Urorec® (silodosin) 63.3 50.7 24.9 Livazo® (pitavastatin) 2
Slide 16: Composition of revenue by geography
Composition of revenue by geography Sustained growth (million Euro) Jan-Sep 2016 Jan-Sep 2015 Change % Italy 171.2 157.4 8.8 France 84.7 81.6 3.8 U.S.A. 77.4 60.0 28.9 Germany 72.7 68.6 6.0 Turkey 65.8 56.3 17.0 Spain 55.8 53.1 5.2 Russia, other CIS countries and Ukraine 56.1 52.0 7.8 North Africa 3
Slide 17: First nine months 2016 results
First nine months 2016 results Further margin growth (million Euro) Jan-Sep 2016 Jan-Sep 2015 Change % Revenue 862.4 784.4 9.9 Gross Profit 595.1 532.8 11.7 as % of revenue 69.0 67.9 SG&A Expenses 273.5 262.5 4.2 as % of revenue 31.7 33.5 R&D Expenses 60.2 55.2 9.0 as % of revenue 7.0 7.0 Other Inco
Slide 18: First nine months 2016 results: operating segments
First nine months 2016 results Operating segments Revenue EBIT Treatments for rare diseases 16.3% Treatments for rare diseases 25.5% Primary & specialty care Primary & specialty care 83.7% 74.5% EBIT margin on sales: Treatments for rare diseases, 45.7% Primary & Specialty care, 26.1% (or 27,2% exclu
Slide 19: Financial position and Shareholders' equity
Financial position and Shareholders’ equity (million Euro) 30 Sep 2016 31 Dec 2015 Change Cash and short-term financial 191.1 225.5 (34.4) investments Bank overdrafts and short-term loans (13.3) (9.8) (3.5) Loans – due within one year (40.7) (34.5) (6.2) Loans – due after one year (237.3) (269.9) 32
Slide 20: Financial projections: 2016 targets
Financial projections 2016 targets 2015 2016 (million Euro) Actual Targets Revenue 1,047.7 ± 1,140 Operating income 278.5 ± 325 (EBIT) Net Income 198.8 ± 230 20
Slide 21: The Recordati share
The Recordati share The Recordati share (ticker REC, Reuters RECI.MI, Bloomberg REC IM, ISIN IT 0003828271) has been listed on the Italian Stock Exchange since 1984. It belongs to the FTSE IT Mid Cap, the FTSE IT Health Care and the STOXX Europe 600 Health Care indexes. Share capital consists of 209
Slide 22: Company declarations, disclaimers and profile
Company declarations, disclaimers and profile DECLARATION BY THE MANAGER RESPONSIBLE FOR PREPARING THE COMPANY’S FINANCIAL REPORTS The manager responsible for preparing the company’s financial reports Fritz Squindo declares, pursuant to paragraph 2 of Article 154-bis of the Consolidated Law on Finan
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