Teva Pharmaceutical Industries Limited · TASE:TEVA
Teva Pharmaceutical Industries — Barclays Global Healthcare Conference 2013
35 slides from Teva Pharmaceutical Industries's conference presentation, Mar 14, 2013
Slide 1: Barclays Global Healthcare Conference
Barclays Global Healthcare Conference March 14, 2013 1
Slide 2: Eyal Desheh, Executive Vice President, Chief Financial Officer
Eyal Desheh Executive Vice President, Chief Financial Officer 2
Slide 3: Disclaimer
Disclaimer This presentation and the accompanying remarks contain forward-looking statements, which express the current beliefs and expectations of management. Such statements involve a number of known and unknown risks and uncertainties that could cause our future results, performance or achievemen
Slide 4: Today's objectives
Today’s objectives Vision and strategy Reshaping of Teva Growth platforms Business development 4
Slide 5: Our vision
Our vision The most indispensable medicines company in the world, executing on our obligation to our patients, customers, shareholders and employees 5
Slide 6: Teva Today
Teva Today $20.3b 111 Years 2012 revenues $4.67b in existence 2012 non-GAAP net income 73 46,400 850 molecules manufacturing sites employees 55,000+ 60 SKUs 70B countries tablets and capsules per annum 6
Slide 7: Aligned with customer and market needs
Aligned with customer and market needs Specialty Generics and OTC Respi- INN Branded CNS NTEs ratory Generics Generics Medical Societal Consumer Needs Needs Needs 7
Slide 8: Reshape, Renew, Reward
Reshape Renew Reward wi)
Slide 9: How do we get there?
How do we get there? Accelerate growth platforms Extend global presence Strategic business development Focus, protect and expand core franchises Reduce cost base Develop people and foster entrepreneurial spirit 9
Slide 10: Profitable growth 2013-17 and beyond
Profitable growth 2013-17 and beyond Top line organic growth (despite loss of patent exclusivity) Cost savings opportunities ($1.5-2.0B) allows for stable and robust operating profit Strong cash flow enables - investment in inorganic growth - shareholder reward 10
Slide 11: Teva today
oe oe Teva today
Slide 12: Our Foundation
Our Foundation Passionate employees Unparalleled global footprint Solid fundamentals Comprehensive portfolio World-leading multiple sclerosis franchise 12
Slide 13: Challenges
Challenges Legacy of large acquisitions Unfocused pipeline Complexity of business Inefficient cost structure Increasing competition in multiple sclerosis Specialty products losing exclusivity 13
Slide 14: A changing industry
A changing industry Fewer large generic opportunities Increasing competition in commodity generics Healthcare systems under pressure Rising bar for product innovation Complicated, expanding global market 14
Slide 15: Strengths
Strengths Critical provider to global healthcare systems Generics, Specialty and OTC Local entrepreneurship and global scale Patient engagement capabilities Integrated Generics and Specialty R&D Customer understanding and relationships Strong partnering experience 15
Slide 16: Teva tomorrow
~~, ** Teva tomorrow
Slide 17: The new Teva
The new Teva Less More Complexity Globalized Cost Valuable pipeline Network footprint Sustainable products Commodity Patient and customer focus Balanced profits Shareholder value 17
Slide 18: Our Path to Growth
Our Path to Growth Specialty Generics and OTC Respi- INN Branded CNS NTEs ratory Generics Generics Protect and expand MS franchise First-to-file, First-to-market Build CNS products & pipeline Highly differentiated, high barrier Invest in respiratory capabilities & complex products pipeline
Slide 19: Generics: a strong core
Generics: a strong core Impact EU: 2.7M prescriptions a day healthcare system U.S.: 1.5M prescriptions a day Pipeline of 450 launches in 2012 high value products Branded ~$2B focused on generics business growing economies ~400 molecules in R&D capabilities development 19
Slide 20: Generics: a great future
Generics: a great future Impact Global healthcare system Pipeline Sustainable of high-value products high-barrier to entry Branded Rapid growth generics business Dramatically enhanced R&D capabilities in selected areas 21
Slide 21: Emerging Markets: A growth engine
Emerging Markets: A growth engine Sizable ~6 billion patients Expected to double in 5 years Fast growing ~$100B to over $200B Sustained Branded generics markets that profitability value quality Source: IMS July 2012 22
Slide 22: Tailored growth plan
Tailored growth plan Current Top 3 Top 50 Early New position Gx Co. Pharma Co. Stage Markets Bolster Build up Expand Penetrate Russia Mexico Brazil China Japan Turkey Korea India Commercial Critical mass Partnership Alliance excellence 23
Slide 23: OTC: a winning partnership
OTC: a winning partnership Strategic alliance Over 20 countries, Footprint focused on high growth Growth 11% in FY12 Brands 24
Slide 24: Specialty medicines: Maintain revenue through organic growth
Specialty medicines: Maintain revenue through organic growth Active defense of key products Significant value in core therapeutic areas Attractive organic growth 26
Slide 25: Refine and enhance pipeline - 2013
Refine and enhance pipeline - 2013 18 new programs 12 programs discontinued 16 15 13 10 8 Pre-clinical Phase I Phase II Phase III Sub/reg 27
Slide 26: New Therapeutic Entity
NEW THERAPEUTIC ENTITY Known molecule that is formulated, delivered, or used in a novel way to address specific patient needs 29
Slide 27: New Therapeutic Entities (NTEs)
New Therapeutic Entities (NTEs) Commercial opportunity linked to level of differentiation and value added Efficacy Higher NCE Compliance/adherence risk (NDA) Safety/tolerability Teva can apply different commercial models and expertise Demand creation Lower NTEs NTE Patient support services
Slide 28: Business development
Business development Global vision, global strategy Resources of large pharma, flexibility of biotech Linking strategy with BD to drive major growth Expertise in strategic transactions $10B available over next five years 32
Slide 29: Business development strategy
Business development strategy Balance investment in growth with return to investors Build CNS, Respiratory, OTC Strategic alliances in key areas Selective geographic investment Small to mid-size deals Accretive and growth transactions Divest non-core assets 33
Slide 30: Balanced cash allocation for more shareholder reward
Balanced cash allocation for more shareholder reward Organic cash flow from operations: $4.5-5.5B per year until 2017 Business Around $2 Billion per year development Shareholder $1 - 2 Billion per year return Debt service Up to $1 Billion per year Capital Up to $1 Billion per year expenditure 36
Slide 31: Reshaping Teva
Reshaping Teva Increase organizational effectiveness Optimize procurement Move to lower-cost plants in network Reduce excess capacity Improve plant efficiency 37
Slide 32: $1.5B to 2.0B cost savings
$1.5B to 2.0B cost savings 70% achievable Estimated reduction 2013-2017, $B in 3 years 2.0 Ramp-up over time due to Additional magnitude and complexity 1.5 reduction of change 1.0 Expect most impact in 2014-2015 Base 0.5 case Help mitigate price erosion, volume growth and other factors 0.0 2013YE 20
Slide 33: Teva 2017: a reshaped company
Teva 2017: a reshaped company Sustainable profitable growth Sector leadership Present in all major markets Consistent shareholder value creation Successful alliances Rich pipeline 40
Slide 34: Teva
Teva Visibility on current status of business Strong growth platforms Clear path forward Strong management team Commitment to reward investors 41
Slide 35: Barclays Global Healthcare Conference
Barclays Global Healthcare Conference March 14, 2013 42
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