Recordati S.p.a. · MIL:REC
Recordati — Investor Day (February 2017)
22 slides from Recordati's investor day presentation, Feb 9, 2017
Slide 1: Business Plan 2017-2019
Business Plan 2017-2019 MILAN - 9 FEBRUARY 2017
Slide 2: Index
Index 1. Strategy 2. Sales development - assumptions 3. Financial projections 1
Slide 3: Index
Index 1. Strategy 2. Sales development - assumptions 3. Financial projections 2
Slide 4: Strategy: Our successful group strategy will continue to create growth
Strategy Our successful group strategy will continue to create growth • Expand through organic development and through acquisitions • Develop product portfolio by enhancing product pipeline and new product acquisitions. Prioritize specialty care and treatments for rare diseases. • Reinforce presence
Slide 5: Strategy: European player in primary and specialty care
Strategy Recordati is an important European player in primary and specialty care and a partner of choice for new product licenses • Continue growth of currently marketed products • Accelerate growth in European markets by continuing to pursue a bolt-on acquisition strategy • Continue to grow double
Slide 6: Strategy: Treatments for rare diseases
Strategy Treatments for rare diseases A global presence and a preferred partner • Continue growth of currently marketed products • Fully exploit sales potential of Cystadrops® (cysteamine eye drops for ocular manifestations of cystinosis), following approval by EMA • Advance projects in current deve
Slide 7: Strategy: Research and Development
Strategy Research and Development • Plan includes around 8% of sales to be allocated to R&D activities • Primary and specialty care: ‐ Focus on the development of products in specialty care areas on a European basis. ‐ Life-cycle management and indication expansion activities. • Rare Diseases: ‐ Glo
Slide 8: Index
Index 1. Strategy 2. Sales development – assumptions • Primary and specialty care, current portfolio and pipeline • Treatments for rare diseases, current portfolio and pipeline • Business development, new opportunities 3. Financial projections 7
Slide 9: Current portfolio care: Lercanidipine franchise
Current portfolio primary and specialty care, sales development - assumptions Lercanidipine franchise Zanidip® (lercanidipine) and Zanipress® (lercanidipine+enalapril) 200 • Sales of Zanidip® expected to remain stable 180 at around € 110 million going forward 160 • Considering both brands and generi
Slide 10: Current portfolio care: Urorec (silodosin)
Current portfolio primary and specialty care, sales development - assumptions Urorec® (silodosin) 120 100 • Urorec® launched in 34 markets 80 • Average market share 10% of BPH market in 17 main countries € millions 60 • In 2019 sales expected to exceed 40 € 100 million with an average high single di
Slide 11: Current portfolio care: Livazo (pitavastatin)
Current portfolio primary and specialty care, sales development - assumptions Livazo® (pitavastatin) 60 • Livazo® launched in 6 markets 50 • Average market share 7.5% of 40 statins market in 4 main countries € millions 30 • Launched in Russia and launch expected in Turkey in 2017 20 • Expect sales t
Slide 12: Current portfolio care: Other corporate products
Current portfolio primary and specialty care, sales development - assumptions Other corporate products 250 200 • Includes 19 products of which 6 are OTC products 150 Sales expected to grow mid € millions • single digit over the plan period 100 driven by the expansion of Casen Recordati portfolio and
Slide 13: Current portfolio care: OTC business
Current portfolio primary and specialty care, sales development - assumptions OTC business • An opportunity to be further developed in all European markets • Currently most brands are marketed in single countries • Opportunities for cross-selling existing products to be identified and pursued • Sale
Slide 14: Pipeline products care: Reagila (cariprazine)
Pipeline products primary and specialty care, sales development - assumptions Reagila® (cariprazine) Recordati enters a new therapeutic area • Exclusive license agreement signed in 2016 with Gedeon Richter to commercialize cariprazine in Western Europe, Algeria, Tunisia and Turkey • Cariprazine is a
Slide 15: Pipeline products care: Fortacin
Pipeline products primary and specialty care, sales development - assumptions Fortacin™ (lidocaine+prilocaine) • Fortacin™ is an easy-to-use fast acting topical spray formulation of lidocaine and prilocaine for the treatment of premature ejaculation • Licensed in for Europe, Russia, Commonwealth of
Slide 16: Current portfolio rare diseases: Treatments for rare diseases
Current portfolio rare diseases, sales development - assumptions Treatments for rare diseases 300 • Sales projections based on current product portfolio 250 • Overall sales expected to grow 200 double digit annually over the period € millions 150 • Cystadrops® to be the main growth 100 driver in Eur
Slide 17: Rare disease products - pipeline
Pipeline products rare diseases, sales development - assumptions Rare disease products - pipeline • Initial sales of Graspa®, in the ALL indication, expected during the plan period. Peak sales could be in the range of € 25 - 30 million. • Included in the plan period are initial sales, thanks to earl
Slide 18: Business development, new opportunities
Business development, new opportunities New opportunities to be actively pursued • Bolt-on acquisitions included in the plan based on the re-investment of cash flow generated after the payment of dividends • Reinforce primary and specialty care businesses in existing key markets • Available rare dis
Slide 19: Index
Index 1. Strategy 2. Sales development - assumptions 3. Financial projections 18
Slide 20: Financial projections - assumptions
Financial projections - assumptions EBIT and EPS to continue to grow double digit • Margins achieved in 2016 to be sustainable over the plan period • Projections are calculated at current exchange rates • Dividend pay-out ratio of 60% of consolidated net income to be maintained • Cash flow, after pa
Slide 21: Financial projections: 2017 targets and plan for 2019
Financial projections 2017 targets and plan for 2019 EBIT and EPS to continue to grow double digit 2016 2017 2019 (million Euro) Actual Targets Plan Revenue 1,154 ± 1,220 ± 1,450 EBITDA 371 ± 410 ± 500 Operating income 327 ± 365 ± 450 (EBIT) Net Income 235 ± 260 ± 325 20
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