Eql Pharma Ab · OMXSTO:EQL
Eql Pharma Ab — Investor Day (March 2025)
45 slides from Eql Pharma Ab's investor day presentation, Mar 7, 2025
Slide 1: Capital Markets Day
Capital Markets Day 7 March 2025
Slide 2: Today's presenters
Today’s presenters Axel Schörling Carl Lindgren Alexander Brising Chief Executive Chief Business Development Chief Commercial Officer Officer Officer Joined EQL as COO in 2018 and has Joined EQL as CBDO in 2023, bringing Joined EQL as Business Development since held several management roles, w
Slide 3: Agenda Capital Markets Day 2025
Agenda Capital Markets Day 2025 Time Content Speaker Pages 09:00-09:15 Introduction to EQL Pharma Axel Schörling 4-12 Evaluation of historic 5-year plans 09:15-09:45 Axel Schörling 14-19 and new financial targets Business plan breakdown – Business 09:45-10:15 Alexander Brising 21-29 strategy 10:15-1
Slide 4: An introduction to EQL Pharma
An introduction to EQL Pharma Axel Schörling CEO
Slide 5: EQL Pharma at glance | Leading provider of niche generics
EQL Pharma at glance | Leading provider of niche generics EQL Pharma in brief Geographical presence Founded 2006 in Lund by serial life science entrepreneurs HQ Christer Fåhraeus and Karin Wehlin, EQL Pharma is a fast-growing Swedish pharmaceutical company focused on developing niche generics prim
Slide 6: EQL's history | Proven track record with YoY growth
EQL’s history | Proven track record with YoY growth for 27 consecutive quarters and a remarkable profit development Selected milestones 2006-2014 | 2015-2019 | Market expansion and 2020-2022 | Accelerated growth phase 2023 and future | Building a Foundation strategic initiatives building on the esta
Slide 7: Business overview | Diversified offering within three different business units
Business overview | Diversified offering within three different business units Combining niche generics with branded differentiated products Net sales % share1 ~70% ~15% ~15% Pharmacy Hospital Branded Procurement systems governed by criteria Substitution systems controlled by price Direct prescripti
Slide 8: Introduction to niche generics | Targeting a distinct part of the product life cycle
Introduction to niche generics | EQL targets a distinct part of the pharmaceutical product life cycle Pharmaceutical Product Life Cycle: The Three Life Periods EARLY MIDDLE LATE Pre-clin/ Phase 1 Phase 2 Phase 3 Intro Growth Maturity Decline Generic competition Patent allows for attractive margins P
Slide 9: Business overview | Savvy operating model, asset light
Business overview | Savvy operating model with focus on business development while remaining asset light IDENTIFYING NICHE DEVELOPMENT AND Registration and WAREHOUSING AND TESTING BEFORE EU GENERIC THERAPIES PRODUCTION administration DISTRIBUTION RELEASE ▪ Actively sources ▪ Post sourcing, EQL ▪ EQL
Slide 10: Product development | Cost efficient process with ~70% success rate
Product development | Cost efficient process for organic product development with ~70% success rate Products registered by a bio- EQL Pharma product development | Organic product development waiver is rapid, cost efficient, ~70% success and guarantees quality rate! 1 2 3 4 5 PURCHASE OF STABILITY BI
Slide 11: Competitive landscape | Attractive sweet spot
Competitive landscape | EQL has found an attractive sweet spot within an otherwise competitive market Illustrative competitive landscape Niche generic market overview General generics Niche generics The pharmaceutical market is wide and extensive with Primarily focuses on generics with Primarily foc
Slide 12: Capital allocation | Reinvest cash flows with <2 years pay-back
Capital allocation | Ability to reinvest cash flows with <2 years pay-back time from initial launch at a high ROCE EQL’s capital allocation thesis Attractive capital allocation ▪ EQL has consistently demonstrated its ability to identify and capitalise on attractive opportunities to reinvest its capi
Slide 13: Sustainability | Business model driving affordable and accessible healthcare
Sustainability | Business model driving sustainability by delivering affordable and accessible healthcare Selected industry challenges EQL Pharma’s approach to sustainability VISION MISSION CONCEPT The pharmaceutical industry faces several challenges, including excessive pricing, ”Driving force for
Slide 14: Evaluation of historic 5-year plans and new financial targets
Evaluation of historic 5- year plans and new financial targets Axel Schörling CEO
Slide 15: Previous financial targets FY16 – FY20/21 | Overdelivering
Previous financial targets FY 16 – FY 20/21 | Overdelivering on ambitious growth targets Financial target of 30% CAGR | Exceeded financial target with >35% CAGR Net sales (SEKm) >35% 96 72 50 28 29 FY 16 FY 16/17 FY 18/19 FY 19/20 FY 20/21 14
Slide 16: Current financial targets FY20/21 – FY24/25 | On track
Current financial targets FY 20/21 – FY 24/25 | On track to once again deliver on ambitious growth targets Financial target of 40% CAGR | On the right trajectory to beat growth targets Net sales (SEKm) Adj. EBITDA margin (%) Net sales target FY 24/25 (SEKm) EBITDA margin target EoP (%) 40% 368 264 2
Slide 17: New financial targets (I/III) | 30% CAGR to reach SEK >1bn
New financial targets (I/III) | Ambitious growth of 30% CAGR to reach SEK >1bn in net sales by FY 28/29E Tangible roadmap to growth through four strategic focus areas (SEKm) Key drivers 30% CAGR ▪ Strong pipeline of new products 1,051 1 across all business units will drive 4 organic growth 3 ▪ The B
Slide 18: New financial targets (II/III) | EBITDA margin of >25%
New financial targets (II/III) | Targeting a stabilised EBITDA margin of >25% at the end of the period Relentless focus on profitability: Targeting a 25% EBITDA margin Key drivers Adj. EBITDA margin (%) Target Adj. EBITDA margin (%) ▪ Our EBITDA target is twenty five percent for the period with an 4
Slide 19: New financial targets (III/III) | Conservative balance sheet
New financial targets (III/III) | Maintain a healthy and conservative balance sheet - no room for reckless driving Green zone Yellow zone Red zone <2.5x Net debt / Adj. EBITDA >2.5x Net debt / Adj. EBITDA >4.0x Net debt / Adj. EBITDA EQL aims to have a target net While targeting <2.5x leverage, EQL
Slide 20: Financial targets recap.
Financial targets recap. | Ambitious growth accompanied by strong profitability and a sound capital structure Net sales CAGR EBITDA margin Net leverage 30% 25% <2.5x Net sales CAGR of 30% over the Target over the period with an aim Target to reduce net leverage1 to period to stabilise above 25% towa
Slide 21: Business plan breakdown | Business strategy
Business plan breakdown | Business strategy Alexander Brising CCO
Slide 22: Product development | Rear-view approach enables superior margin profile
Product development | Taking a “rear-view” approach to product development enables a superior margin profile Pipeline Branded Special generics M&A Illustrative product life cycle and price index development Price (indexed at 100) Traditional generics EQL niche generics Illustrative patent period of
Slide 23: Pipeline of new products (I/II)
Pipeline of new products (I/II) | Strong pipeline of new products within all business units Pipeline Branded Special generics M&A Strong pipeline to be launched in the coming years Pharmacy pipeline Marketing Launch Expected marketing Expected launch 3 8 ~60%1 12 6 6 5 Hospital pipeline 77 69 57 51
Slide 24: Pipeline of new products deep dive (II/II)
Pipeline of new products deep dive (II/II) | Proven track record of bringing new products to market Pipeline Branded Special generics M&A Historical development of product portfolio # Number of products 4x products! 40 40 40 ~70% 36 success rate! 28 28 26 25 25 23 22 22 22 22 21 21 16 16 16 16 15 15
Slide 25: Branded segment (I/III) | Emerging business area
Branded segment (I/III) | Emerging business area with a strategic importance Pipeline Branded Special generics M&A Mellozzan® | Melatonin Memprex® | Methenamine Hippurate Geographical presence Mellozzan marketing approval WHAT WHAT Memprex marketing approval ▪ A melatonin-based medication, regulatin
Slide 26: Branded segment (II/III) | Large and attractive non-cyclical market
Branded segment (II/III) | Large and attractive non-cyclical underpinned by a clear customer value-proposition Pipeline Branded Special generics M&A Children & Adolescents Incidence of Large addressable market with ADHD in Europe1 UTI cases2 MM people MM people Large TAM with 85% 60.0 86% attractive
Slide 27: Branded segment (III/III) | Revenue development
Branded segment (III/III) | Strong underlying revenue development driven by new market launches Pipeline Branded Special generics M&A Net sales | Mellozzan (SEKm) Net sales | Memprex (SEKm) 59% CAGR UK revenue of Methenamine Hippurate 29.8 185% CAGR 18.8 17.3 16.4 9.0 8.1 8.3 1.1 FY 21/22 FY 22/23 F
Slide 28: Specialty generics (I/III) | New business unit
Specialty generics (I/III) | Leveraging extensive experience from niche generics to form a new business unit Pipeline Branded Special generics M&A Adding a new business segment to the offering + Pharmacy Hospital Branded Specialty generics Substitution systems controlled Procurement systems governed
Slide 29: Specialty generics (II/III) | Non-interchangeable generics
Specialty generics (II/III) | Targeting non-interchangeable generics less price-centric and higher margins Pipeline Branded Special generics M&A Illustrative product landscape Specialty generics characteristics Utilising EQL’s expertise in exchangeable generics, the natural expansion into non-interc
Slide 30: Specialty generics (III/III) | Differentiated go-to-market strategy
Specialty generics (III/III) | Differentiated go-to-market strategy compared to traditional niche generics Pipeline Branded Special generics M&A Specialty generics in brief Target market and organisational set-up ▪ Leveraging its extensive experience in interchangeable generics, EQL is taking a natu
Slide 31: Business plan breakdown | Acquisition strategy
Business plan breakdown | Acquisition strategy Carl Lindgren CBDO
Slide 32: Inorganic growth initiatives
Inorganic growth initiatives | Proven platform to grow in- organically which drastically reduces the time to market Pipeline Branded Special generics M&A M&A drastically reduces time to EQL Pharma product development | In-organic product development market while at the same time diversifies the prod
Slide 33: Acquisition strategy | What are we looking for?
Acquisition strategy | What are we looking for? Pipeline Branded Special generics M&A Acquisition criteria's Agnostic approach to European expansion ✓ Complementary to EQL’s already existing portfolio • Portfolio of well-established brands that complement EQL’s existing offering • Strong brand recog
Slide 34: Clear approach to integration and value creation
Clear approach to integration and value creation | Integrating acquisitions into already existing platform Pipeline Branded Special generics M&A Integration process Value creation levers Integration Economies of scale Improve efficiency by integrating Drive margin expansion through acquisitions into
Slide 35: Medilink case study | Acquisition of a product portfolio
Medilink case study | Acquisition of a product portfolio Background • EQL acquired four established products from Medilink A/S, a Danish pharmaceutical company founded in 1987, for SEK 185m, implying an EV/GP of 5.1x and EV/EBITDA of 6.6x based on LTM October figures • The products—Buronil, Folimet,
Slide 36: Market consolidation | Numerous opportunities for M&A
Market consolidation | The pharmaceutical market is dynamic with numerous opportunities for M&A Pipeline Branded Special generics M&A Natural divestment and consolidation trend within the global pharmaceutical market ”Closing the divestiture of our OTC business is a significant milestone in the exec
Slide 37: Business plan breakdown | Mellozzan / Memprex deep dive
Business plan breakdown | Mellozzan / Memprex deep dive Alexander Brising CCO
Slide 38: Mellozzan deep dive (I/II) | Unmet needs of 3.8m patients
Mellozzan deep dive (I/II) | Representing an opportunity to address the unmet needs from 3.8m patients in Europe Significant market of children with ADHD and Insomnia… …creating serious problems EU population | ~750m Prevalence Symptoms Amongst the most common Restlessness, lack of ability psychiatr
Slide 39: Mellozzan deep dive (II/II) | Customer value-add and German growth
Mellozzan deep dive (II/II) | Strong development driven by a clear customer value-add and impressive German growth Mellozzan offers a clear value-add… …emphasized by net sales development (SEKm) Sweden Germany Denmark Norway QUICKER ONSET OF ACTION 59% CAGR 29.8 MORE TABLET STRENGTHS AVAILABLE 17.3
Slide 40: Memprex deep dive (I/II) | Recurring UTIs
Memprex deep dive (I/II) | Representing an opportunity to treat recurring UTI’s and combat a global phenomenon Recurring urinary tract infection is a growing problem… …creating serious problems 40% of adult women will experience a UTI in their life 3 Prevalence Symptoms billion Around 40% of adult w
Slide 41: Memprex deep dive (II/II) | Growth in the UK
Memprex deep dive (II/II) | Strong development driven by a clear customer value-add and impressive growth in the UK Memprex offers a clear value-add… …emphasized by net sales development (SEKm) The United Kingdom REGULATORY APPROVED 185% CAGR 18.8 REDUCES ANTIBIOTIC RESISTANCE FLEXIBLE DOSING 9.0 8.
Slide 42: Concluding remarks
Concluding remarks Axel Schörling CEO
Slide 43: Strategy recap. | Remain innovative and expand geographically
Strategy recap. | Remain innovative within business development and expand EQL geographically EQL’s strategy and roadmap to success Tangible opportunity to grow geographically Continue to develop and invest in the product portfolio ▪ With 40 products currently in its pipeline, EQL is committed to st
Slide 44: Long-term vision
Long-term vision | Albeit being a CMD for the FY 28/29 targets, we continue to build EQL for the long-term “Albeit being a CMD in relation to the new FY 28/29 targets, we continue to lay the foundation for EQL with a long-term vision in mind. Our focus extends beyond immediate milestones, as we stri
Slide 45: Q&A
Q&A