Recordati S.p.a. · MIL:REC
Recordati — Goldman Sachs Healthcare Conference 2009
24 slides from Recordati's conference presentation, Jun 9, 2009
Slide 1: Goldman Sachs Healthcare Conference, 9 June 2009
Goldman Sachs Healthcare Conference, 9 June 2009 A European specialty pharmaceutical company
Slide 2: Company Profile and Strategy
COMPANY PROFILE AND STRATEGY Company Profile • Mid sized pharmaceutical company with a European focus ((2900 employees, p y , of which 1400 field force)) OE • R&D in the cardiovascular and urology fields and in OE treatments for rare diseases OE • Marketing operations in the main Western European OE
Slide 3: Composition of Pharmaceutical Revenue
COMPOSITION OF PHARMACEUTICAL REVENUE Portugal 6.2% Spain 3.7% Germany 7 7.6% 6% UK 1 1.4% 4% Other European countries 0.9% Russia, Turkey, other CEE 6.7% France 19.6% Other international sales 16.9% Pharmaceutical Italy 30.1% Orphan Europe 6.8% chemicals 3.7% Pharmaceuticals 96.3% Data: First quart
Slide 4: Breakdown of Pharmaceutical Revenue
BREAKDOWN OF PHARMACEUTICAL REVENUE Prescription 83% % of pharmaceutical revenue Zanidip®/Zanipress® (lercanidipine/ 31% lercanidipine+enalapril) Elopram® /Entact® 6% (citalopram/escitalopram) - Italy OTC 14% Peptazol® (pantoprazole) - Italy 3% Methadone - France 2% Tora-Dol® (ketorolac) - Italy 2%
Slide 5: Zanidip (lercanidipine)
Zanidip® (lercanidipine) • Calcium channel blocker indicated for the treatment of hypertension. Lipophilic dihydropiridine discovered and developed by Recordati Recordati. Efficacy as best in class class, superior tolerability. • On the market in 92 countries. Second largest CCB in the 16 main marke
Slide 6: R&D Pipeline
R&D PIPELINE NAME ORIGINATOR INDICATION DEVELOPMENT STATUS Hypertension (lercanidipine+enalapril) Approved in EU. Launched in a Zanipress®/Zanitek® Recordati number of countries rupatadine Uriach Rhinitis,, allergic, g , seasonal / perennial p urticaria Approved pp Infection, respiratory tract pruli
Slide 7: New corporate products
New corporate products • ZANIPRESS® (lercanidipine+enalapril) • PITAVASTATIN • SILODOSIN • KENTERA® (oxybutynin TDS) TDS), RUPATADINE, RUPATADINE FROVATRIPTAN 6
Slide 8: Zanipress (lercanidipine+enalapril)
New corporate products ZANIPRESS® (lercanidipine+enalapril) (l idi i l il) • Fixed combination of lercanidipine (a CCB) • Fixed combinations will play a significant role in the future and enalapril (an ACE-I) indicated for the hypertension market treatment of hypertension. Two strengths: • New aggre
Slide 9: Pitavastatin
New corporate products PITAVASTATIN • Highly effective HMG-CoA reductase inhibitor positioning indicated for the treatment of • Similar LDL-C reduction of market leading hypercholesterolaemia best-in-class statins • Semi-exclusive license granted by Kowa • Broad-spectrum effects on secondary lipid P
Slide 10: Silodosin
New corporate products SILODOSIN • BPH market in 19 major European markets approx. € 1.0 billion • Highly selective α1A receptor antagonist indicated • In-market peak sales expected: € 100-150 million for the treatment of symptoms associated with benign prostatic hyperplasia (BPH) positioning • Orig
Slide 11: New developments for Lower Urinary Tract Symptoms and incontinence
New developments for the Lower Urinary Tract Symptoms (LUTS) and incontinence • Irritative symptoms of the lower urinary tract (mainly urgency and frequency with or without incontinence) are frequent, mainly in women and the elderly. This condition, known as Overactive Bladder (OAB) is either idiopa
Slide 12: Orphan Europe
ORPHAN EUROPE • Recordati acquired Orphan Europe, a European pharmaceutical company dedicated to treatments for rare diseases, diseases in December 2007 • Orphan Europe operates in an untapped niche market. It has a well balanced, cash generating portfolio of 9 products with strong growth potential
Slide 13: R&D Pipeline – drugs for rare diseases
R&D PIPELINE – drugs for rare diseases NAME ORIGINATOR INDICATION DEVELOPMENT STATUS Orphan Europe Approved in EU Carbaglu® NAGS deficiency (Recordati) Filed in U.S. Orphan Europe Organic acidemias Pre-registration in EU Carbaglu® (Recordati) Orphan Europe Vitamin E deficiency in cystic fibrosis and
Slide 14: Development of drugs for rare diseases
Development of drugs for rare diseases • Carbaglu® (carglumic acid), a drug developed by Orphan Orphan Europe will complete the clinical Europe for the treatment of NAGS deficiency, approved development of stannsoporfin in Europe in in the EU in 2003 and filed recently for approval with the accordan
Slide 15: First Quarter 2009 Highlights
FIRST QUARTER 2009 HIGHLIGHTS • Revenue € 183.7 million, up 6.9%, international sales grow by 11.7% • Operating income (EBIT) € 40.6 40 6 million, million up 6 6.5% 5% • Net Income € 27.6 million, up 9.3% • Acquisition of Herbacos-Bofarma in the Czech Republic • Subsequent events: Zanextra® (lercani
Slide 16: First Quarter 2009 Results
FIRST QUARTER 2009 RESULTS (million Euro) 1Q 2009 1Q 2008 Change % Revenue 183 7 183.7 171 9 171.9 69 6.9 Gross Profit 123.5 116.1 6.4 as % of revenue 67.2% 67.6% SG&A Expenses 65.8 63.4 3.8 as % of revenue 35.8% 36.9% R&D Expenses 15 3 15.3 13 4 13.4 14 4 14.4 as % of revenue 8.3% 7.8% Other Income
Slide 17: Net Financial Position and Shareholders' Equity
NET FINANCIAL POSITION AND SHAREHOLDER’S EQUITY (million Euro) 31 Mar 2009 31 Dec 2008 Change Cash and short-term financial 62.8 95.0 (32.2) investments Bank overdrafts and short-term (62.2) (90.8) 28.7 loans Loans – due within one year (2 8) (2.8) (2.2) (0.6) Loans – due after one year (83.7) (82.9
Slide 18: Sales Development
FINANCIAL PROJECTIONS 2009 - 2011 SALES DEVELOPMENT Based on existing business, no new acquisitions included 17
Slide 19: Sales Development
FINANCIAL PROJECTIONS 2009 - 2011 SALES DEVELOPMENT • Zanidip® sales expected to be around € 200 million in 2009 2009. Following appearance of generic competition in main markets, sales in 2010 expected to be around € 105 million. Further price erosion in 2011 expected to be of around 20%. • Zanipre
Slide 20: 2009 - 2011 Plan
FINANCIAL PROJECTIONS 2009 - 2011 2009 - 2011 PLAN 2008 2009 2010 2011 Actual Targets Plan Plan (million Euro) Revenue 689.6 ~750 700-720 780-800 R&D expenses 58 9 58.9 ~75 ~70 ~75 Operating p g income ((EBIT)) 144.7 ~155 135-140 145-150 Net Income 100.4 ~105 95-98 102-105 Based on existing business
Slide 21: Expected cash flow generation
FINANCIAL PROJECTIONS 2009 - 2011 E Expected t d cash h flflow generation ti 2009 2010 2011 (million Euro) Plan Plan Plan Cash flow ~135 ~125 ~130 CAPEX (tangible assets) ~10 ~10 ~10 Investment in intangible assets ~20 ~20 ~20 Expected E t d free f cash h flflow ~105 ~95 ~100 generation Dividend p p
Slide 22: Expected net financial position
FINANCIAL PROJECTIONS 2009 - 2011 E Expected t d nett financial fi i l position iti Actual 2008 2009 2010 2011 Based on existing business, no new acquisitions included 21
Slide 23: Strategic objective
STRATEGIC OBJECTIVE • Strategic objective for the 2009-2011 period is to grow sales and profits every year by adding to organic development new business acquisitions in growing markets • S lid acquisition Solid i iti ttrack k record d • Since 1999 approx. € 375 million invested in acquisitions to ex
Slide 24: 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