Kyorin Pharmaceutical Co.,ltd. · TSE:4569
Kyorin Pharmaceutical Co.,ltd — FY2019 Earnings Presentation
39 slides from Kyorin Pharmaceutical Co.,ltd's earnings presentation, May 13, 2020
Slide 1: Financial Results for Fiscal 2019
Financial Results for Fiscal 2019 May 13 , 2020 KYORIN Holdings, Inc. Representative Director, President and Chief Executive Officer Yutaka Ogihara
Slide 2: Outline of Consolidated Financial Results
Outline of Consolidated Financial Results ・Trends of mainstay products Consolidated Financial Results and Forecast Status of R&D Pipeline Initiatives toward realization of the long-term vision “HOPE 100” ・Medium-Term Business Plan “HOPE 100-Stage 2-”(Fiscal 2016～2019) ・New Medium-Term Business P
Slide 3: Outline of Consolidated Financial Results
Outline of Consolidated Financial Results 3
Slide 4: Outline of Consolidated Financial Results for Fiscal 2019
Outline of Consolidated Financial Results for Fiscal 2019 (unit : ¥billion) Change Change FY2018 FY2019 Change (revised (%) forecast) Net Sales 113.6 110.0 －3.6 －3.2 ＋0.6 Operating 9.0 7.5 －1.5 －16.4 ＋1.0 Income Ordinary 9.4 8.2 －1.2 －13.4 ＋1.1 Income Net Income 6.9 6.1 －0.8 －10.5 ＋0.7 4
Slide 5: Breakdown of Gain and Loss
Breakdown of Gain and Loss (unit : ¥billion) Change Change FY2018 FY2019 Change (revised (%) forecast) Net Sales 113.6 110.0 －3.6 －3.2 ＋0.6 107.9 103.6 －4.3 －3.9 ＋0.2 78.5 72.6 －5.9 －7.5 ＋0.2 Sales of Ethical drugs new Japan 77.7 71.2 －6.5 －8.4 ＋0.2 business ethical drugs Overseas 0.8 1.5 ＋0.7 ＋79.5
Slide 6: Highlights of Business Performance ① (Sales)
Highlights of Business Performance ①（Sales） (Units: ¥ billion) 【 Net Sales ¥－3.6bln】 120 113.6 【 Ethical Drugs Sales －¥4.3bln】 110.0 5.8 Ethical drug sales in Japan－¥6.5bln 6.4 ・Decreased in prescriptions of long-listed drugs 100 （Nasonex, etc.）. ・Delay of the resumption of supply of 29.3 Desalex 31
Slide 7: Highlights of Business Performance ② (Income)
Highlights of Business Performance ②（Income） (Units: ¥ billion) 【Operating Income ¥－1.5bln】 Gross Profit decreased 10 Net Sales： Decreased ¥3.6bln year on year Cost of sales ratio : 8 －0.4 －0.2 Decreased 1.4% year on year +0.9 ・ Impact of NHI price revision due to consumption tax increase (approxima
Slide 8: Highlights of Business Performance ③
Highlights of Business Performance ③ （Change : revised forecast) (Units: ¥ billion) Change Change FY2018 FY2019 Change (%) (revised forecast) Net Sales 113.6 110.0 －3.6 －3.2 ＋0.6 107.9 103.6 －4.3 －3.9 ＋0.2 Sales of 78.5 72.6 －5.9 －7.5 ＋0.2 Ethical drugs new ethical Japan 77.7 71.2 －6.5 －8.4 ＋0.2 bus
Slide 9: Mainstay Product Sales
Mainstay Product Sales （ Units: ¥ billion ） Change FY2018 FY2019 Change Change(％) (revised Forecast) Flutiform (Combination drug for asthma treatment) 13.1 14.6 ＋1.5 ＋12.2 ＋0.5 Desalex (Antiallergic Agent) 3.7 2.6 －1.1 －30.1 －2.4 Beova（Kyorin） (β3 adrenergic receptor agonist overactive bladder thera
Slide 10: Trends of mainstay products and Generic drugs
Trends of mainstay products and Generic drugs 10
Slide 11: Mainstay product: Flutiform
■Mainstay product Flutiform (Combination drug for asthma treatment) (Units: ¥ billion) 14 12 status of FY2019 ◆ ICS/LABA market ： expand 2.4% ¥120.3bln（FY2018） ⇒ ¥123.2（FY2019） ※1 10 share of Fultiform sales 12.2%（FY2018） ⇒ 13.2%（FY2019）※1 8 Effort for FY2020 14.6 15.0 ◆Aim to establish a first-l
Slide 12: Mainstay product: Desalex
■Mainstay product Desalex (Antiallergic Agent) (Units: ¥ billion) (Units: ¥ billion) Antihistamine market 200 188.5 178.2 173.5 8 162.1 156.2 6 132.0 107.1 113.1 about 103.1 92.0 60％ 8.8 4 4.9 2 3.7 60.4 71.2 64.3 56.6 59.0 2.6 1.0 0 0 16/3 17/3 18/3 19/3 20/3 17/3 18/3 19/3 20/3 21/3 New drugs long
Slide 13: Mainstay product: Beova / Uritos
■Mainstay product Beova / Uritos (Therapeutic agent for overactive bladder) (Units: ¥ billion) OAB market (Units: ¥ billion) 96.3 Uritos / Beova 100 91.0 91.3 10.1 Imidafenacin 87.0 90.3 10 AG 80 β3 25.3 30.4 34.1 receptor 8 7.3 4.3 38.3 48.6 agonist others 0.7 60 7.0 6 Beova 40 4 anticholiner 7.5 7
Slide 14: Mainstay product: Lasvic
■Mainstay product Lasvic (Oral new quinolone synthetic antibacterial agent) (Units: ¥ billion) (Units: ¥ billion) Antibacterial agent (oral) Market 5 169.3 4 144.6 150 125.9 105.6 3 96.2 100 2 4.1 About 80％ 50 1 1.1 0 0 16/3 17/3 18/3 19/3 20/3 20/3 21/3 (Forecast) Released Lasvic Tablets New drugs
Slide 15: Status of Generic Drugs
■Status of Generic Drugs Kei (Units: ¥ billion) 34.9 35 3.5 Status of FY2019 MOMETASONE 31.0 AG 29.3 Released of Mometasone AG 30 27.7 2.8 Montelukast AG ・Maintain the market share of more than 50% in the GE 25.0 market. 25 10.7 MONTELUKAST AG ・Released in FY2019 11.9 Silodosin Tablets/OD, Mecoba
Slide 16: Diagnosis Business
■ Diagnosis Business Microfluidic Real -Time PCR System Features: ◆Compact PCR device which can identify genes rapidly, accurately and simply ◆It performs quantitative detection of target genes (around 5~15 minutes) using the microfluidic thermal cycling technology. Nov. 11, 2019 Released GeneSoC® a
Slide 17: Consolidated Financial Results and Forecast
Consolidated Financial Results and Forecast 17
Slide 18: Consolidated Financial Results Forecast for the Year Ending March 31, 2021
Consolidated Financial Results Forecast for the Year Ending March 31, 2021 (Units: ¥ billion) FY2020 Y/Y FY2019 （forecast） Change Change(%) Net sales 110.0 115.5 ＋5.5 ＋5.0 103.6 110.5 ＋6.9 ＋6.7 Sales of 72.6 75.6 ＋3.0 ＋4.1 Ethical drugs new business ethical Japan 71.2 74.6 ＋3.4 ＋4.8 drugs Overseas 1
Slide 19: Forecast of Mainstay Product Sales
Forecast of Mainstay Product Sales (Units: ¥ billion) Y/Y FY2020 FY2019 (Forecast) Change Change(％) Flutiform (Combination drug for asthma treatment) 14.6 15.0 ＋0.4 ＋2.4 Desalex (Antiallergic Agent) 2.6 8.8 ＋6.2 ＋240.2 Beova（Kyorin） (β3 adrenergic receptor agonist overactive bladder therapeutics) 4.
Slide 20: Shareholder Returns
Shareholder Returns Basic Policy ・While maintaining the sound financial base, we aim to improve the capital efficiency through growth investment and returns to shareholders. ・We will maintain stable dividends taking DOE (Dividend on Equity ratio) into account. Dividend per share for fiscal 2019 (est
Slide 21: Status of R&D pipeline
Kyorin ©) UO ee, Status of R&D pipeline 21
Slide 22: Drug R&D Pipeline: Progress in FY2019
Drug R&D Pipeline: Progress in FY2019 progress in FY19 development code PhⅠ PhⅡ PhⅢ application Approval/ Launch Ad-SGE-REIC End of the PhⅠ／PhⅡ PhⅡStart 2018/6 Respiratory KRP-108P 2017/6 2019/7 January KRP-AM1977X 2019/9 8, 2020 Infections KRP-AM1977Y 2019/10 Urological KRP-116D 202/3 ・MK-7264, a d
Slide 23: Drug R&D Pipeline: Progress in FY2020
Drug R&D Pipeline: Progress in FY2020 progress in FY20 development code PhⅠ PhⅡ PhⅢ application Approval / Launch Ad-SGE-REIC End of the PhⅠ／PhⅡ PhⅡStart 2018/6 Expecting to Respiratory KRP-108P 2019/7 acquire approval and release in FY20 KRP-R120 Expecting to Interstitial lung disease Start clinica
Slide 24: HOPE 100-Stage 2- (Fiscal 2016～2019)
Progress of Medium-Term Business Plan “HOPE 100-Stage 2-” (Fiscal 2016～2019) 24
Slide 25: Structure of Management Planning
Structure of Management Planning １）Corporate Philosophy Kyorin continues to fulfill its mission of cherishing life, and benefiting society by contributing to better health. ２）Corporate Message Your Health is Kyorin‘s Mission. Corporate Philosophy Long-Term Vision－HOPE１００－ Aim for Health Of People an
Slide 26: Overall of Long-Term Vision HOPE 100
Overall of Long-Term Vision－HOPE１００－ Long-Term Vision「HOPE100」 【Statement】 The Kyorin Group will promote diversified business expansion and the development of the consumer healthcare business, and by 2023, will be recognized within and outside the Group as a company that supports sound and healthy l
Slide 27: Review of the Medium-Term Business Plan HOPE100 Stage 2
Review of the Medium-Term Business Plan “HOPE100 Stage 2” Strategy 1.Enhancing drug discovery capabilities 2. Increase ratio of new drugs group (new drug group ratio : more than 50%) ◆selecting drug discovery programs and 【Four Priority focusing on ◆Growth of Flutiform ・Kinase / Fibrosis Strategy】 ◆
Slide 28: Target Value and Performance
Performance Target Value ■ the average annual growth 【 Factor】 rate ：3% or more ⇒ －2.0％ ■ Dramatic reform of the NHI drug price scheme ・ Review of the Price Maintenance Premium, etc. ■ the consolidated operating income margin : ■ New drug business (in Japan) 15% or more ・Temporary suspension of the
Slide 29: HOPE 100-Stage 3- (Fiscal 2020～2023)
New Medium-Term Business Plan “HOPE 100-Stage 3-” (Fiscal 2020～2023) 29
Slide 30: Basic Concept of New Medium-Term Business Plan
Basic Concept of New Medium-Term Business Plan “Hope 100-Stage 3” External Environment Internal Environment ・Further strengthening of health care cost ・Appearance of new drugs as growth drivers containment measures ・Expectation for new business (diagnosis business) ・Increased difficulty of new drug
Slide 31: HOPE100 Statement
New Medium-Term Business Plan “Hope 100-Stage 3” 「HOPE100」 Statement The Kyorin Group will promote diversified business expansion and the development of the consumer healthcare business, and by 2023, will be recognized within and outside the Group as a company that supports sound and healthy lifesty
Slide 32: Overview of New Medium-Term Business Plan
Overview of New Medium-Term Business Plan “HOPE 100-Stage 3-” ・Shift to business based on the proposal of solutions and accelerate the growth of new drug groups. ・ Enhance pipeline to support medium-term growth Business Strategy（S） ・ Strengthen drug discovery capability to realize the creation of St
Slide 33: Shift to business based on the proposal of solutions
Overview of New Medium-Term Business Plan “HOPE 100-Stage 3-” Strategy Shift to business based on the proposal of solutions and accelerate the growth of new drug groups. ●Shift to business based on the proposal of solutions to problems by combining ethical drugs business and infection-related busine
Slide 34: Solution Provision Activities in Infection Domain
Solution Provision Activities in Infection Domain Response to changing environment （MR activities/Medical care provision system） Rebuild sales structure and enhance details Shift to business based on Treatment proposal of solutions 治療 Lasvic Tablets KRP-AM1977Y ソリューション Doctors/Pharmacists/Nurs es IC
Slide 35: Enhance pipeline and strengthen drug discovery
Overview of New Medium-Term Business Plan “HOPE 100-Stage 3-” Strategy Enhance pipeline to support medium-term growth ●Actively invest in enhancements to the pipeline that will contribute to business performance in the medium term, with diseases surrounding the three specialities* of franchise custo
Slide 36: Efforts on innovative drug discovery
Efforts on innovative drug discovery Cooperation Watarase Resarch Center ActivX(USA) Open innovation Open innovation Academia, Venture Pharmaceutical companies in Japan and overseas Selection and Concentration Drug discovery Priority study area Outside the company Kinase / Fibrogenesis study Theme (
Slide 37: Improve cost competitiveness
Overview of New Medium-Term Business Plan “HOPE 100-Stage 3-” Strategy Improve cost competitiveness ・Increase cost competitiveness of the GE business by improving the efficiency of the GE sales structure. ・Strengthen the ability to create new generics for listing in JP. ・Establish a manufacturing st
Slide 38: Expand overseas revenue
Overview of New Medium-Term Business Plan “HOPE 100-Stage 3-” Strategy Expand overseas revenue ●Expand overseas revenue through the promotion of global out-licensing. ●Steadily take steps towards direct entry to the Asia market. 38
Slide 39: Organization and Performance Targets
Overview of New Medium-Term Business Plan “HOPE 100-Stage 3-” Organization Aim to be the No. 1 company as Best worthwhileness place of work ・Train and attract human resources to support our development as a next-generation company, aiming to be the No. 1 place to work Performance ・Numerical targets