Mayne Pharma Group Ltd. · ASX:MYX
Mayne Pharma — Mayne Group — Merrill Lynch Global Pharma Conference 2004
32 slides from Mayne Pharma's conference presentation, Sep 21, 2004
Slide 1: Mayne Group Limited – Merrill Lynch Global Pharma Conference
Mayne Group Limited Merrill Lynch Global Pharma Conference London, UK Mr Stuart James Group Managing Director and Chief Executive Officer 21 September 2004
Slide 2: Forward-Looking Statement
Forward-Looking Statement Comments will be made that are forward-looking statements for the purposes of the Private Securities Litigation Reform Act of 1995. We caution that these forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially fro
Slide 3: Group overview
Group overview 3
Slide 4: Healthcare positioning
Healthcare positioning Mayne Group Limited • ASX listed: $US 1.8 billion market capitalisation • 12,000 employees Pharmaceuticals Diagnostic Services Pharmacy Mayne Pharma: Pathology: Wholesale Distribution: • Research, development • #2 Australian market • Leading wholesaler of manufacture and sale
Slide 5: Mayne has reshaped itself
Mayne has reshaped itself Portfolio pre-divestments* Portfolio post-divestments** Pharmacy Hospitals 16% 23% Pharma 30% Pharma EBITA 39% Logistics 8% Contribution Consumer 3% Diagnostics Pharmacy 39% 13% Consumer Diagnostics 6% 23% * Based on FY03 EBITA (Logistics EBITA to Dec 2002 annualised) ** Ba
Slide 6: Mayne's business portfolio
Mayne’s business portfolio • Focussed on high growth and high return sectors in health • Portfolio benefits – Diversification – risk reduction – Capital allocation – strong cash flow from Diagnostic Services and Pharmacy support Pharma growth • Strong returns – each business is positioned to deliver
Slide 7: Strong FY04 performance
Strong FY04 performance FY04 Actual Annual Year ending 30 June 2004 ($US) Growth Continuing revenue $2.5 B é 10.2% Continuing EBIT $109.6 M é 16.8% Continuing NPAT (before significant items) $56.7 M é 70.2% Net operating cash flows $190.9 M é 46.6% Cash EPS* 17.5 c é 36.3% Net debt / (net debt + equ
Slide 8: Strength of underlying business
Strength of underlying business Revenue* EBITA* $US millions $US millions 2,500 200 2,000 150 1,500 2,459.9 100 2,231.2 1,000 164.3 145.3 1,610.2 50 106.9 500 0 0 FY02 (1) FY03 FY04 FY02 (1) FY03 FY04 (1) Includes FH Faulding & Co Limited results from 1 October 2001 * Continuing business ie. Exclude
Slide 9: Operating cash flow growth
Operating cash flow growth ($USm) Sold Logistics 350 Feb 2003 Sold Hospitals 300 313 Dec 2003 250 273 244 245 200 191 150 130 100 126 60 50 0 FY01 FY02 FY03 FY04 EBITDA Net Operating Cash Flow ($USm) Note: $AU amounts converted to $US at $US 0.70/$AU 1.00 9
Slide 10: Mayne Pharma overview
Mayne Pharma overview 10
Slide 11: Mayne Pharma snapshot
Mayne Pharma snapshot History Mayne acquired Faulding/DBL has more than 150 Faulding in 2001 years experience in pharmaceuticals Financials FY04 sales $US351 million (5 year CAGR: 22%) FY04 EBITA margin 19.6% (5 year CAGR: 25%) People Employees 1,900 Places Geographic presence Direct: 20 countries,
Slide 12: Generics growth outperforming branded
Generics growth outperforming branded 8% Total 20% 10% USA 20% 10% Canada 17% 8% UK 38% 5% Germany 13% 6% France 35% 4% Italy 24% 11% Spain* 26% 3% Japan 2% % growth generics % growth branded * Retail only Source: IMS Health: MIDAS, MAT March 2004 12
Slide 13: A global business
A global business Wasserburg, Germany Manufacturing facility Aguadilla, Puerto Rico Manufacturing Boulder, USA facility Manufacturing facility (API processing) Direct presence Mulgrave, Australia Manufacturing facility Distribution arrangements (cytotoxic capabilities) Melbourne, Australia Head Offi
Slide 14: Mayne is well positioned
Mayne is well positioned EMEA Asia Pacific Americas Emerging Leader* Regional Leader Growing Presence 41% revenue 34% revenue 25% revenue • Market leader in generic • Clear market leader in • Emerging US business injectables in continental generic injectable pharma • #2 generic hospital Europe and U
Slide 15: Global generic coverage
Global generic coverage • 5 of our top 10 generic molecules registered across all three regions • Global platforms driving significant synergies and competitive market positions • Paclitaxel trifecta completed in 1H04, through Paxene® deal Paclitaxel • Vertically integrated with surety of supply and
Slide 16: An established track record of growth
An established track record of growth Revenue: CAGR 22% $US millions 500 400 300 455.0 200 322.1 350.6 298.4 246.9 100 156.3 0 FY00(1) FY01(1) FY02(2) FY03 FY04 FY05(3) Notes (financial year ending 30 June) (1) Based on F H Faulding & Co Limited (Faulding) financial statements (2) Based on Faulding
Slide 17: An established track record of growth
An established track record of growth EBITA: CAGR 25% $US millions and Margin % 100 91 EBITA margin 21.0% 80 19.6% range: 17-20% 77 17.9% 18.3% 16.8% 60 40 67.8 68.7 54.5 20 41.5 28.0 0 FY00(1) FY01(1) FY02(2) FY03 FY04 FY05 (3) EBITA EBITA margin Notes (financial year ending 30 June) (1) Based on F
Slide 18: Mayne Pharma's mission
Mayne Pharma’s mission “To be the global leader in injectable specialty pharmaceuticals” 18
Slide 19: Global growth strategy
Global growth strategy Specialty Pharmaceuticals Focus: Proprietary, Branded Generics, Commodity Generics INTERNAL GEOGRAPHIC ACQUISITION DEVELOPMENT EXPANSION & IN-LICENSING GLOBAL MANUFACTURING CAPABILITIES TO ENSURE COMPETITIVE PRODUCT COSTS AND SURETY OF SUPPLY 19
Slide 20: Building our business
Building our business Increasing specialisation Established Proprietary Proprietary Branded Emerging Niche product products Branded Biogenerics products generics Biogenerics specialisation (ICEs) generics (ICEs) Evaluating Vertical Generic Generic integration/ Local “Complex” oncology Local “Complex
Slide 21: Building our business
Building our business Increasing specialisation Established Proprietary Proprietary Branded Emerging Niche product products Branded Biogenerics products generics Biogenerics specialisation (ICEs) generics (ICEs) Evaluating Vertical Generic Generic integration/ Local “Complex” oncology Local Wasserbu
Slide 22: Significant pipeline growth
Significant pipeline growth • Robust pipeline that has been significantly strengthened over the last 2 years • Total pipeline to 2011 has a local market value of $US9.4 billion Country launches and current Local Market Value* (LMV) at launch 2500 120 101 100 2000 Country Launches 80 LMV -USDm 1500 5
Slide 23: Product pipeline 2005 - 2011
Product pipeline 2005 - 2011 Local # of Market regional # of country Value2 Product pipeline approvals approvals ($USm) Internal development Americas 32 45 6,093 EMEA 22 200 1,911 Asia Pacific 10 10 45 64 255 8,049 In-licensing/acquisition1 Americas 10 11 840 EMEA 5 48 443 Asia Pacific 16 16 88 31 7
Slide 24: Key products
Key products Launch Product Market Date LMV ($USm) Carboplatin US Oct 04 780 Irinotecan Global FY04 – 09 750 Ondansetron Global FY06 – 07 685 Propofol US FY06* 540 Epirubicin Global FY05 – 07 250 Fluconazole mini-bag Global FY04 – 06 300 Desferrioxamine Global FY04 – 07 65 Source: IMS, Mayne Pharma
Slide 25: Recent 1st to market moves
Recent 1st to market moves 1st generic pamidronate Europe, Canada 2002 1st generic desferrioxamine Europe 2003 1st generic epirubicin Australia Propofol paragraph IV US Ondansetron paragraph IV US 1st generic paclitaxel Europe 2004 1st generic irinotecan Europe Launch of in-licensed products, Eligar
Slide 26: Geographic expansion
Geographic expansion • Mayne Pharma has a proven geographic expansion strategy – Leverages Mayne’s global footprint in sales and marketing – Very successful but disciplined expansion into continental Europe in last 3-4 years is a prime example • Mayne is continuing to roll-out this strategy in other
Slide 27: In-licensing activity
In-licensing activity Why? Mayne’s unique position • Broadens product offerings • Unique international sales • Time-to-market and marketing positions particularly in EMEA and considerations Asia Pac makes Mayne a • Reduces costs and spreads partner of choice risk In-licensing: supplements internal d
Slide 28: Corporate development opportunities
Corporate development opportunities • Additional development activities under consideration include – Access to low cost R&D, manufacturing – Geographic expansion – Expand product base • Future acquisitions will fit with the Pharma growth strategy – Focus on acute care, oncology and hospital product
Slide 29: World class manufacturing
World class manufacturing • USFDA certified manufacturing facilities in each of three key geographic regions – Mulgrave, Australia – injectable cytotoxic and non-cytotoxic capability – Salisbury, Australia – oral pharmaceutical capability – Aguadilla, Puerto Rico – injectable, non-cytotoxic – Wasser
Slide 30: Mayne Pharma: growth engine
Mayne Pharma: growth engine • Global footprint with leading market positions around the world • Strong track record with a substantial platform for growth: – Strong industry growth globally – Geographic diversity across the business – Deep in-house expertise – Deep and broad pipeline – People, facil
Slide 31: Outlook
Outlook Pharma • Pharma FY05 revenue growth – at least 30% • Long-term pharma growth expectation – Revenue growth – 15-20% – EBITA margins – 17-20% Mayne Group • Mayne Group expected growth for FY05 – Full year EBIT growth of at least 10% against FY04 continuing business 31
Slide 32: Mayne Group Limited
Mayne Group Limited Merrill Lynch Global Pharma Conference London, UK
Mayne Group — Merrill Lynch Global Pharma Conference 2004 on 6ix