Hikma Pharmaceuticals PLC · LSE:HIK
Hikma Pharmaceuticals — Site Visit – Generics (2006)
18 slides from Hikma Pharmaceuticals's conference presentation, 2006
Slide 1: Generic Pharmaceuticals
GENERIC PHARMACEUTICALS Gabriel Kalisse Vice President, Generics
Slide 2: This document, which has been issued by Hikma Pharmaceuticals PLC (the “Company”), comprises the
z This document, which has been issued by Hikma Pharmaceuticals PLC (the “Company”), comprises the written materials/slides for a presentation. This document and its contents are confidential and may not be reproduced, redistributed or passed on, directly or indirectly, to any other person or publis
Slide 3: Our diversified and successful business model
Our diversified and successful business model Branded Generics Injectables Focus on Middle East and N. Focus on US market Sales in US, Europe & MENA Africa (MENA) 2005 revenue: $93 million 2005 revenue: $115 million 2005 revenue: $49 million H1 2006 revenue: $64 million H1 2006 revenue: $53.8 millio
Slide 4: Generics remains a significant contributor to Group sales
Generics remains a significant contributor to Group sales H1 2005 revenue by segment H1 2006 revenue by segment 41.3% 38.8% 16.9% 42.6% 34.8% 21.9% 1.6% 2.0% Generic Branded Injectable Other Generic Branded Injectable Other 3
Slide 5: US generic market outperforming originators
US generic market outperforming originators US Pharmaceutical Market US Generic Market ($bn) ($bn) z United States is the single largest 300 25 22.4 market for generics 251 250 239 z $22.4bn sales in 20 18.5 2005(1) 218 194 16.7 200 15 12.9 z First six months of 150 2006 US generic 10 market grew by
Slide 6: Generic industry dynamics reinforce a positive outlook
Generic industry dynamics reinforce a positive outlook z 2005-2009, products with $63 Positive Factors Negative Factors billion in annual sales(1) z Key competitors include: z Watson Labs z Teva z Over 65 year olds forecast to Very z Mylan grow to 18.5% of total U.S. Competitive z Amide population i
Slide 7: Hikma's niche market strategy
Hikma’s niche market strategy A SELECTION OF HIKMA’S TOP PRODUCTS Equivalent Product Therapeutic Category Originator Product Comments ABC Blue Non-Narcotic Analgesic Fioricet® captopril cardiovascular system Capoten® Competitive advantage in API sourcing (anti-hypertensive) doxycycline (anti-biotics
Slide 8: Current operating environment is challenging
Current operating environment is challenging z Overall performance of top products is stable z Strong performance by some offsetting significant price erosion on others z Performance of smaller products more challenging z Opportunity to improve performance through alternate API sourcing and more eff
Slide 9: Generic Pharmaceuticals – 2006 approvals
Generic Pharmaceuticals – 2006 approvals ANDA approvals in H1 2006 IMS 2005 Sales Product name Therapeutic category ($ million) Cephalexin capsules 250 & 500mg Cephalosporin (Oral) 79.5 Cefadroxil capsules 500mg Cephalosporin (Oral) 17.5 Amoxicillin tablets 875mg Penicillin (Oral) 56.3 Cefadroxil ta
Slide 10: Our expanding product portfolio presents opportunities
Our expanding product portfolio presents opportunities z 11 ANDA approvals received YTD Generic ANDA Approvals – 1995 through 2006 YTD z 11 ANDA submissions filed so far in 2006 11 10 z 22 approvals pending 9 8 z 49 products under development 7 expected to be launched 6 between 2007 and 2009 5 4 z T
Slide 11: Our expanding product portfolio presents opportunities
Our expanding product portfolio presents opportunities Submissions YTD 11 4 submitted in 2004 7 submitted in 2005 11 submitted in 2006 Pending approvals 22 $12 billion market Under development 49 10
Slide 12: Pipeline spans a range of therapeutic categories
Pipeline spans a range of therapeutic categories • Pending Approval • Cardiovascular – 5 • Central Nervous System – 8 (including 4 Antiepileptic) • Antibiotics – 8 (including 2 Antimalarial) • Gastrointestinal – 1 • Pipeline • Cardiovascular – 7 • Central Nervous System – 19 (including 4 Antiepilept
Slide 13: API sourcing remains a distinct competitive advantage
API sourcing remains a distinct competitive advantage z API – Active Pharmaceutical Ingredient z US operations source 38 API z 42 different API suppliers z Majority from India and/or China z 2 sources are vertically integrated 12
Slide 14: Increasing our focus on sales and marketing
Increasing our focus on sales and marketing z Increasing penetration of Managed Care marketplace z Increasing sales to chains through unit of use and marketing an “antibiotic package” z Program set up to bid on state and municipality solicitations z VA and DOD concentration to put their contracted p
Slide 15: US manufacturing capacity
US manufacturing capacity Facilities Capacity Own/ Size Capacity Use Certification Utilisation % Lease (sq m) 3.5 billion 4,181 80% Manufacturing Own FDA tablets/capsules(1) 12.5 million Packaging and 7,432 bottles in different 88% Own FDA administration package sizes Offices, R&D, 2,694 n.a. n.a. q
Slide 16: Strategy
Strategy z Active monitoring and quick response to customers’ preferences z Increase efficiency and decrease cost z Expand sales & marketing infrastructure z Competitive product pricing 15
Slide 17: Financial highlights
Financial highlights Highlights Gross Profit % Gross Profit z Price pressure in 2005 mitigated by increases in ($m) Margin 58.0% 54.3% 54.8% sales volumes 54.1% 53.8% 60% 60 z Stable gross margins 40% 40 z Continuing pressure on operating margins 20 20% z Gross and operating margins still above indu
Slide 18: Summary
Summary z Strong industry dynamics in United States driving industry growth of 16.1% p.a. over next 3 years(1) z Strong R&D focus –22 pending approvals, 49 new products under development z Sales and marketing teams with strong relationships with leading wholesalers and other key customers z FDA cert