Recordati S.p.a. · MIL:REC
Recordati — Bank of America Merrill Lynch Global Healthcare Conference 2017
23 slides from Recordati's conference presentation, Sep 15, 2017
Slide 1: A Specialty Pharmaceutical Group
A Specialty Pharmaceutical Group Bank of America Merrill Lynch Global Healthcare Conference – 15 September 2017
Slide 2: A strategy of growth and geographical expansion
A strategy of growth and geographical expansion • An international specialty pharmaceutical group (€ 1,154 million sales in 2016 and 4,100 employees). • Marketing operations in the main European markets, in Russia, Poland and other Central and Eastern European countries, in Turkey, in the Profile U.
Slide 3: Extensive geographical footprint
Extensive geographical footprint 3
Slide 4: Geographical breakdown of pharmaceutical revenue
Geographical breakdown of pharmaceutical revenue Other international sales 14.6% (sales to licensees and exports) Other CEE 2.6% Italy 22.1% Other W. Europe 4.1% Portugal 3.2% North Africa 3.7% France 9.6% Spain 6.4% Russia, other CIS and Ukraine 9.0% Turkey 7.3% Germany 8.7% U.S.A. 8.7% Data: First
Slide 5: A diversified product portfolio
A diversified product portfolio Other corporate products 13.9% Drugs for rare diseases 16.0% Livazo® 3.0% Urorec® 7.1% Zanipress® 5.6% OTC 17.1% Zanidip® 10.6% Subsidiaries’ local product portfolios 22.3% Pharmaceutical chemicals 3.6% Ortoton® (methocarbamol) - Germany 3% Other revenue 0.8% Methadon
Slide 6: Core corporate products: Zanipress and Zanidip
Core corporate products Zanipress® (lercanidipine+enalapril) Zanidip® (lercanidipine) • Lercanidipine is a proprietary latest generation calcium channel blocker indicated for the treatment of hypertension. Enalapril is an ACE inhibitor indicated for the treatment of hypertension. • Sales of Zanidip®
Slide 7: Core corporate products: Urorec (silodosin)
Core corporate products Urorec® (silodosin) • Highly selective α1A receptor antagonist indicated for the treatment of symptoms associated with benign prostatic hyperplasia (BPH). • Fast onset of action. High efficacy. Very good cardiovascular safety. • Launched in 35 markets. • License and co-market
Slide 8: Core corporate products: Livazo (pitavastatin)
Core corporate products Livazo® (pitavastatin) • Highly effective HMG-CoA reductase inhibitor indicated for the treatment of hypercholesterolaemia. • Thanks to its unique chemical structure Livazo® is a potent LDL-lowering drug with a consistent and progressive HDL-raising effect. (Atherosclerosis S
Slide 9: Drugs for rare diseases: A worldwide business
Drugs for rare diseases A worldwide business Huge market potential: > 6,000 rare diseases identified for which treatments exist for only around 300. Progressive country introduction of rare disease plans and access to diagnostic tests will stimulate the market for orphan drugs. • Acquisition of Orph
Slide 10: Treatments for rare diseases
Treatments for rare diseases NORMOSANG® (EU-RoW) /PANHEMATIN® (US) (human haemin), used to treat acute attacks of hepatic porphyria CARBAGLU® (carglumic acid), indicated in the treatment of hyperammonaemia due to NAGS deficiency and to the main organic acidemias COSMEGEN® (dactinomycin), used mainly
Slide 11: A well balanced product pipeline
A well balanced product pipeline NAME ORIGINATOR INDICATION DEVELOPMENT STATUS REAGILA® Gedeon Richter Schizophrenia Approved in EU Variation of EU approval FORTACIN™ Plethora Solutions Premature ejaculation completed Treatment of cancer-related pain in cases of methadone Filed in France resistance
Slide 12: A well balanced R&D pipeline (cont'd)
A well balanced R&D pipeline (cont’d) • REAGILA® (cariprazine) is an orally active and potent dopamine D3/D2 receptor partial agonist with preferential binding to D3 receptors and partial agonist at serotonin 5-HT1A receptors developed by Richter in the EU for the treatment of schizophrenia • FORTAC
Slide 13: A well balanced R&D pipeline (cont'd)
A well balanced R&D pipeline (cont’d) • CARBAGLU® (carglumic acid), currently approved for the treatment of hyperammonaemia due to NAGS deficiency, approved in Europe and in filing preparation phase in the USA for additional indications in organic acidemias (orphan drug designation granted). New for
Slide 14: First half 2017 highlights
First half 2017 highlights • Revenue € 650.9 million, up 10.7% • EBITDA € 224.0 million or 34.4% of sales, up 19.1% • Operating income (EBIT) € 203.2 million or 31.2% of sales, up 19.4% • Net income € 147.0 million or 22.6% of sales, up 19.8% • Net debt € 356.3 million, an increase of € 157.5 millio
Slide 15: Main product sales
Main product sales Corporate products including drugs for rare diseases account for 64.6% of revenue (million Euro) 1H 2017 1H 2016 Change % Zanidip® (lercanidipine) 69.2 63.7 8.7 Zanipress® (lercanidipine+enalapril) 36.3 35.0 3.9 Urorec® (silodosin) 46.5 42.7 8.9 Livazo® (pitavastatin) 19.4 17.7 9.
Slide 16: Composition of revenue by geography
Composition of revenue by geography Continued growth (million Euro) 1H 2017 1H2016 Change % Italy 138.7 118.0 17.6 France 60.1 57.2 5.0 Russia, other CIS countries and Ukraine 56.4 35.7 58.0 U.S.A. 54.7 52.8 3.5 Germany 54.3 48.1 13.1 Turkey 45.7 45.1 1.3 Spain 40.2 37.6 7.0 North Africa 23.1 26.7 (
Slide 17: First half 2017 results
First half 2017 results Further margin growth (million Euro) 1H 2017 1H 2016 Change % Revenue 650.9 587.9 10.7 Gross Profit 454.1 407.4 11.5 as % of revenue 69.8 69.3 SG&A Expenses 202.4 187.0 8.2 as % of revenue 31.1 31.8 R&D Expenses 47.2 41.6 13.3 as % of revenue 7.2 7.1 Other Income (Expense), n
Slide 18: First half 2017 results: Operating segments
First half 2017 results Operating segments Revenue EBIT Treatments for rare diseases 16.0% Treatments for rare diseases 22.1% Primary & specialty care Primary & specialty care 84.0% 77.9% EBIT margin on sales: Treatments for rare diseases, 43.1% Primary & Specialty care, 28.9% 18
Slide 19: Net financial position
Net financial position (million Euro) 30 June 2017 31 Dec 2016 Change Cash and short-term financial 85.8 138.5 (52.7) investments Bank overdrafts and short-term loans (19.9) (15.7) (4.2) Loans – due within one year (41.6) (40.4) (1.2) Loans – due after one year (380.5) (281.1) (99.4) NET FINANCIAL P
Slide 20: Financial projections - assumptions
Financial projections - assumptions • Plan includes around 8% of sales to be allocated to R&D activities • Dividend pay-out ratio of 60% of consolidated net income to be maintained • Cash flow, after payment of dividends, to be entirely re-invested for the growth of the group • Bolt on acquisitions
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 1,290 - 1,300 ± 1,450 EBITDA 371 450 - 460 ± 500 Operating income 327 400 - 410 ± 450 (EBIT) Net Income 235 290 - 295 ± 325 21
Slide 22: The Recordati share
The Recordati share The Recordati share (ticker REC, Reuters RECI.MI, Bloomberg REC IM, ISIN IT 0003828271) has been listed on the Italian Stock Exchange since 1984. It belongs to the FTSE MIB, the FTSE IT Health Care and the STOXX Europe 600, Health Care indexes. Share capital consists of 209,125,1
Slide 23: 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
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