Teva Pharmaceutical Industries Limited · TASE:TEVA
Teva Pharmaceutical Industries — Investor Day (October 2007)
32 slides from Teva Pharmaceutical Industries's investor day presentation, Oct 15, 2007
Slide 1: Dan Suesskind, CFO – October 15, 2007
Dan Suesskind, CFO October 15, 2007 1
Slide 2: Forward-Looking Statements
Forward-Looking Statements TODAY’S PRESENTATION CONTAINS FORWARD LOOKING STATEMENTS WHICH EXPRESS THE CURRENT BELIEFS AND EXPECTATIONS OF MANAGEMENT. SUCH STATEMENTS ARE BASED ON CURRENT EXPECTATIONS AND INVOLVE A NUMBER OF KNOWN AND UNKNOWN RISKS AND UNCERTAINTIES THAT COULD CAUSE TEVA’S FUTURE RES
Slide 3: Overview
Overview • Vertically-integrated global pharmaceutical company founded in 1901 • Three main business sectors – Finished Dosage Generic Pharmaceuticals – Active Pharmaceutical Ingredients (API) – Proprietary Branded Pharmaceuticals • Presence in 60 countries; approximately 26,000 employees • Rank amo
Slide 4: Q2/2007 – Sales By Region
Q2/2007 – Sales By Region Q2/07: $2,386 Million Q2/06: $2,172 Million North America, 59% North America, 60% ** TSP, 6% ROW, 2% ROW, 2% ** TSP, 2% Latin America, Latin America, Europe, 25%* Israel, 6% Europe, 24%* 6% Israel, 4% CEE, 4%, 4% CEE, 4%, * Western Europe and Hungary ** TSP is part of North
Slide 5: Q2/2007 – North America Pharmaceutical Sales
Q2/2007 – North America Pharmaceutical Sales ($ Millions) Up 6% 35 % R = CAG 1,341 1,260 676 624 405 Q2/03 Q2/04 Q2/05 Q2/06 Q2/07 5
Slide 6: Teva’s competitive positioning
Teva’s competitive positioning N Neew a r r t tnneerrsshhiip p t w PPrrood duucctt PPa n aaggeem meennt PPip ipeelilinnee Ma M an G Gllo l iiaal ss obb aa CCh ll SSuu c nnc rccee aa n ur haa ppp FFiin ssoou iinn pllyy RRee API API Product Product Vertical Vertical Breadth Breadth Integration Integra
Slide 7: Top U.S. Pharmaceutical Companies
Top U.S. Pharmaceutical Companies Generic companies only All pharmaceutical companies Total Rx’s Total Rx’s 1 Teva USA 430,296 1 Teva USA 440,561 2 Mylan 269,613 2 Pfizer 280,222 3 Watson 221,845 3 Novartis 274,201 4 Sandoz 194,976 4 Mylan 271,611 5 Barr 137,680 5 Watson 221,848 6 Mallinckrodt 103,0
Slide 8: U.S. Generic Industry’s Largest Pipeline
U.S. Generic Industry’s Largest Pipeline 150 ANDAs – over $88 billion in total sales 81 Paragraph IV Filings 43 First-to-File – over $37 billion in total sales As of September 4, 2007 * Including products under the agreement with Andrx and Impax 8
Slide 9: Q2/2007 – Europe Pharmaceutical Sales
Q2/2007 – Europe* Pharmaceutical Sales ($ Millions) Up 13 % 30% R = CAG 556 492 350 274 193 Q2/03 Q2/04 Q2/05 Q2/06 Q2/07 * Western Europe and Hungary 9
Slide 10: Value of Products Coming off Patent in Europe to 2013
Value of Products Coming off Patent in Europe to 2013 6000 5000 4000 M$ 3000 2000 1000 0 06 07 08 09 10 11 12 13 20 20 20 20 20 20 20 20 Overall value of about $33 billion - on average $4 billion a year - 10 Source: IMS Top eight European Markets
Slide 11: Potential Savings From Increased Generic Substitution
Potential Savings From Increased Generic Substitution Recommendations 1. Introduce a coherent generic medicine policy 2. Encourage price differentiation / competition in current regulatory framework 3. Disseminate price information to actors 4. Increase confidence of actors in generic medicines 5. P
Slide 12: Generic Market by Country
Generic Market by Country Strong Gx market growth particularly in “Emerging- Gx countries” 2007-12 CAGR Italy 20%, Spain 15%, France 14% 6000 3 markets in Europe being significantly affected by changes in healthcare 5000 Decision from GP to payer 4000 New playing field 3000 Significant healthcare re
Slide 13: The Western European Gx market continues to grow
The Western European* Gx market continues to CAGR grow 2007-2012 However… growth is high outside Germany At first glance Europe seems like a large, but Western Europe limited-growth (7% ex-Germany Germany CAGR) market… +11% Flat +7% Particularly in “Emerging- Gx countries” among the EU-5 Italy Spain
Slide 14: Moving quickly in a changing environment drives our success in Germany
Moving quickly in a changing environment drives our success in Germany AOK Healthcare Insurer • 25 mio insurers • Leader in Germany market (36% share) Trend from GP towards Payer 1st Tender success for Teva 2nd AOK Tender for 2008 &2009 14
Slide 15: Ongoing Expanded Geographical Positioning
Ongoing Expanded Geographical Positioning = new countries 2005 = new countries 2006 Following geographical expansion in 2005, Teva has extended its foothold in 2006 with 6 countries: • Norway • Finland • Denmark • Ireland • Austria • Greece Growth expectations for these countries in 2007 are as much
Slide 16: Teva has Proven its Capability to Successfully Operate in Both European Market Models
Teva has Proven its Capability to Successfully Operate in Both European Market Models 100% TEVA No. 3 HU TEVA No. 1 IT SP Start-Up Domination by “native companies”, but ….. DE Doctor FR Teva No. 4 Influence UK TEVA No. 1 NL Influence 100% Pharmacist / Payer 16
Slide 17: Q2/2007 – International (ROW) Pharmaceutical Sales
Q2/2007 – International (ROW) Pharmaceutical Sales ($ Millions) Up 26% % 346 R = 47 CAG 275 126 105 73 Q2/03 Q2/04 Q2/05 Q2/06 Q2/07 17
Slide 18: Sales 2003-2006
Sales 2003-2006 (In Million $) Up 60% 8,408 8,400 7,700 27% = 7,000 AGR C 6,300 5,600 5,250 4,799 4,900 4,200 3,500 3,276 2,800 2,386 2,172 2,100 1,400 700 0 2003 2004 2005 2006 Q1/07 Q2/07 18
Slide 19: R&D Expenses ($ Millions)
R&D Expenses ($ Millions) Gross R&D Grants & Participations R&D - Net = 28% R CAG 506 500 11 450 383 400 356 14 350 18 300 243 250 495 30 200 369 138 150 338 124 1 4 100 213 120 137 50 0 2003 2004 2005 2006 Q2/06 Q2/07 19
Slide 20: Net Income ($ Millions)
Net Income ($ Millions) 2000 1,867 1800 1600 1400 1200 1,072 965 1000 800 618 600 515 342 400 200 0 2003* 2004* 2005 2006* Q1/07 Q2/07 * Before non-recurring items, after tax. 20
Slide 21: API - Overview
API - Overview ($ Millions) Internal / third party sales Third Party 1,327 Internal 1,067 940 587 524 654 501 371 740 357 334 Down 6% 543 439 145 143 Down 1% 283 212 Down 10% 191 2003 2004 2005 2006 Q2/06 Q2/07 21
Slide 22: Dividend 2002-2006
Dividend 2002-2006 (In Million $) Up 42% 247 46% = AGR C 174 134 88 75 75 2003 2004 2005 2006 Q1/07 Q2/07 22
Slide 23: Driving Growth, Expanding Leadership
Driving Growth, Expanding Leadership Teva’s growth engines are fueled by: • Expanding our global market reach • Increasing efficiency through our centers of excellence • The industry’s leading product offering • Expanding our branded Neurology & Respiratory franchises • The industry’s most robust pi
Slide 24: Dan Suesskind, CFO – October 15, 2007
Dan Suesskind, CFO October 15, 2007 24
Slide 25: Back Up
e Back Up TEVA PHARMACEUTICAL INDUSTRIES LTD.
Slide 26: Strong Q2 2007 Performance
Strong Q2 2007 Performance Q2/2007 Q2/2006 %Change Sales ($ Millions) 2,386 2,172 10% Net Income ($ Millions) 515 541 (*) - 5% Earnings per Share (diluted $) 0.63 0.66 - 5% Cash Flow from Operations $437 $212M P/E Ratio 2007 (F.C. Consensus $2.32) 19 Market Capitalization (as of Sept. 3, 2007: $43.0
Slide 27: Competitive Generic TRX share
Competitive Generic TRX share* Simvastatin # of ANDA’s: 9 Pravastatin 10/20/40 # of ANDA’s: 10 Teva 52.5% Teva 46.3% Dr. Reddy – AG 22.5% Apotex 24.3% Ranbaxy 6.9% Watson – AG 12.4% Aurobindo 6.3% Dr Reddy 9.4% Sandoz 3.4% Sandoz 4.5% Zydus 2.5% Par 0.9% Other 5.9% Other 2.2% Sertraline # of ANDA’s:
Slide 28: Q2/2007 – Copaxone In-Market Global Sales
Q2/2007 – Copaxone® In-Market Global Sales ($ Millions) 1,414 1,176 US 498 Non US 936 394 720 311 Up 23% 225 436 916 353 23% 782 151 625 123 495 24% 231 285 2003 2004 2005 2006 Q2/06 Q2/07 28
Slide 29: Q2/2007 – Cash Flow Highlights
Q2/2007 – Cash Flow Highlights ($ Millions) Q2/07 Q1/07 Yr 2006 Yr 2005 Yr 2004 Yr 2003 Net Income (loss) 515 342 546 1,072 332 691 Cash flow from operating 437 499 2,058 1,370 1,246 627 Activities** Acquisition of companies - - 3,587 11 1,961 8 Purchase of fixed assets 106 149 366 307 307 205 (net
Slide 30: Q2/2007 – Financial Strength
Q2/2007 – Financial Strength ($ Billions) Jun 30, Mar 31, 2007 2007 Total Equity 12.06B 11.39B Total Debt 5.51B 5.53B of which: short-term 1.52B 1.52B long-term 3.98B* 4.01B* Leverage* 0.31 0.33 * [DEBT/(Debt+Equity)] 30
Slide 31: NASDAQ Top 20 Companies
NASDAQ Top 20 Companies As of Aug. 31, 2007 1 MSFT Microsoft Corp. $ 269,487,390,000 2 CSCO Cisco Systems Inc. $ 193,243,680,000 3 GOOG Google Inc. (Cl A) $ 160,383,390,000 4 INTC Intel Corp. $ 149,942,260,000 5 AAPL Apple Inc. $ 120,361,530,000 6 ORCL Oracle Corp. $ 103,569,960,000 7 CMCSA Comcast
Slide 32: Teva Vs. Dow Jones 1984-2007
Teva Vs. Dow Jones 1984-2007 $1,000 invested in DJ in 1984 would be worth $11,950 today $1,000 invested in Teva in 1984 would be worth $561,664 today 60000% Teva Teva high 15.12.05 DJ $ 45.53 50000% 40000% 9.10.07 Teva 43.88$ DJ 14,165 30000% 20000% 21.11.84 Teva $ 0.0781 9.10.07 DJ 1,202 DJ high 14
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