Teva Pharmaceutical Industries Limited · TASE:TEVA
Teva Pharmaceutical Industries — 28th Annual J.P. Morgan Healthcare Conference (January 2010)
32 slides from Teva Pharmaceutical Industries's conference presentation, Jan 11, 2010
Slide 1: 28th Annual J.P. Morgan Healthcare Conference
1 28th Annual J.P. Morgan Healthcare Conference Eyal Desheh, Chief Financial Officer William S. Marth, President and CEO, Teva North America January 11th 2010
Slide 2: Forward looking statements
Forward looking statements 2 TODAY’S PRESENTATION CONTAINS FORWARD-LOOKING STATEMENTS, INCLUDING, AMONG OTHER THINGS, REGARDING OUR EXPECTED PROFITABLE GROWTH, REVENUES, NET INCOME, THE DRIVERS AND CONTRIBUTORS OF THIS GROWTH, STRATEGY AND COMPETITIVE ADVANTAGES, WHICH EXPRESS THE CURRENT BELIEFS AN
Slide 3: Non-GAAP financial measures
Non-GAAP financial measures 3 TODAY’S PRESENTATIONS REFLECT NON-GAAP FINANCIAL MEASURES, INCLUDING OPERATING PROFIT, NET INCOME, EPS, OPERATING MARGIN, AND NET INCOME MARGIN, AND SHOULD NOT BE CONSIDERED REPLACEMENTS FOR GAAP RESULTS. WE PROVIDE SUCH NON-GAAP DATA BECAUSE MANAGEMENT BELIEVES THAT SU
Slide 4: Two major topics
Two major topics 4 GENERICS GROWTH COPAXONE & TEVA’S BRANDED BUSINESS
Slide 5: Diversity across business units, products, geographies
Balance between high-growth generics & 5 higher-margin branded business ~30% branded High ~70% Higher GROWTH generic MARGINS Diversity across: BUSINESS UNITS, PRODUCTS, GEOGRAPHIES
Slide 6: Is there still room to grow in generics? YES!
Is there still room to grow in generics? YES! 6 $135-150 bn in 2015 GROWTH GROWTH GROWTH GROWTH Increasing People living Healthcare $150bn of opportunities longer and reforms and brands going in emerging consuming cost saving off-patent generics more drugs initiatives in the next markets 5 years
Slide 7: Growing demand for generics
Growing demand for generics 7 Market outlook for global generic sales $135-150bn $150bn in brand value New products: patent expirations $80bn Emerging Future Portfolio Developed Generics International Countries Markets Europe Current portfolio North America 2008 2015 Source: Exane BNP Paribas, IMS,
Slide 8: #1 by any measure
{st in Commitment to Our Customers {st in Rxs Dispensed {st in ANDA Filings 1st in Opening New Markets {st in Product Launches {st in Breadth of Product Line 1st in Vertical Integration 1st in Pedigree Technology 1st in Delivering Affordable Medicines by any measure Tra TEVA PHARMACEUTICALS (©2008,
Slide 9: How we will get there: pipeline
How we will get there: pipeline 9 Teva’s scale provides unparalleled leverage • $500m R&D investment $114bn $55bn • 1,000+ R&D staff brand sales brand sales • Breadth of plants and technology
Slide 10: Extending U.S. leadership to 35% market share
Extending U.S. leadership to 35% market share 10 Number of GGx prescriptions, bn 3.2 3.0 2.8 2.5 Total 4% market CAGR 1.1 0.9 0.6 14% Teva 0.4 CAGR 2007 2009E 2012 2015 Teva market 18% 22% 30% 35% share
Slide 11: Why Europe?
Why Europe? 11 0.5 bn people Aging population Low generics penetration, but rapid generics penetration growth Governments and payors are driving generics growth
Slide 12: Core elements of Teva's European strategy
Core elements of Teva’s European strategy 12 Extend lead in UK, Italy and Netherlands 1 • Expand ‘big-to-big’ relations • Drive profitability through scale Secure leadership market by market 2 • Build leadership in “Latin” and CEE markets • Leverage Teva’s assets in the largest EU market - Germany I
Slide 13: On track to deliver our strategic targets
On track to deliver our strategic targets 13 2007 2008 2009 UK No.1 No.1 No.1 Extended leadership Mature markets Netherlands No.1 No.1 No.1 Germany Top 5 Italy No.1 No.1 No.1 Emerging markets France Top 10 Top 10 Top 3 “Latin Europe” Spain Top 10 Top 3 Hungary Top 10 Top 10 Top 3 Emerging markets Po
Slide 14: International markets - a main growth driver
International markets - a main growth driver 14 World-wide generics sales, $bn $135-150bn $80bn International Europe North America 2008 2015
Slide 15: The Teva Advantage crosses all models
The Teva Advantage crosses all models 15 Multiple Generics Models Teva’s Advantage GGx • >1,000 molecules • Local market knowledge • Government Hospitals relationships BGx • Speed and agility • High quality products Tenders • Low cost manufacturing
Slide 16: Teva continues to focus on high priority markets
Teva continues to focus on high priority markets 16 ~75% of growth Priority Growth Markets 8 countries Established 52 countries Growth Markets
Slide 17: Biosimilars: the future
Biosimilars: the future 17 2008 worldwide sales of biologics, $bn Strategic Alliances Lonza 23 115 76 39 14 Teva’s Bio infrastructure Sicor, IBR&D, Patents Patents Patents Biosimilar Biosimilar CoGenesys expired expiring expiring opportunity - opportunity - before 2010 2010-2015 2016-2020 2008 brand
Slide 18: Copaxone: #1 global MS therapy
Copaxone® 18 #1 global MS therapy Complex product – R&D & manufacturing Likely to require comprehensive clinical trials
Slide 19: Teva Branded – multifaceted approach & expertise
Teva Branded – multifaceted approach & expertise 19
Slide 20: Teva Branded – multifaceted approach & expertise
Teva Branded – multifaceted approach & expertise 20
Slide 21: Branded products and growth opportunities
Branded products and growth opportunities 21 Marketed End phase III 2009-2012 End phase III 2012-2015 Copaxone® Innovative Multiple Sclerosis Laquinimod – Oral Multiple TV-1101 (OGX-011) Sclerosis (Phase III) Solid Tumors (Phase III) Azilect® StemEx® – Hemato-oncological DiaPep-277 – Type I Parkinso
Slide 22: Growth through market share
Growth through market share 22 2015 sales 2009-2015 targets CAGR North America $15bn 9.5% Europe $9bn 18.6% International $7bn 23.2% Total $31bn 14.3%
Slide 23: Strategy update: financial highlights
Strategy update: financial highlights 23 Sales and profits Sales CAGR – 14.3%; EPS CAGR – 13.4% more than double Financial $22 billion in cumulative cash flow strength Controlling Expense growth kept in check costs External FX environment – volatile and unpredictable factors
Slide 24: Net income to reach ~$6.8bn by 2015
Net income to reach ~$6.8bn by 2015 24 2008 2009E 2012 2015 CAGR ‘09-’15 Sales 11.1 13.9 21.0 - 23.2 29.5 - 32.6 14.3% R&D 0.8 0.8 1.7 - 1.9 2.2 - 2.4 18.5% $bn Operating profit 2.9 3.9 6.4 - 7.0 8.2 - 9.0 14.1% Net income 2.5 3.0 4.9 - 5.5 6.5 - 7.1 14.6% EPS 3.03 3.37 5.30 - 5.86 6.80 - 7.52 13.4%
Slide 25: Acquisitions – Teva's approach
Acquisitions – Teva’s approach 25 Acquisitions & licensing Strict criteria Strategic fit Market share in attractive geographies Compelling economics Accretive within one year Niche specialty products
Slide 26: Our North America goal
Our North America goal 26 Sales targets, $bn AGR 15.0 C % 9.5 8.6 2009E 2015 * includes all business Teva has in North America
Slide 27: Our European goal
Our European goal 27 Sales targets, $bn 9.2 GR CA .6% 1 8 3.3 2009E 2015 * includes all business Teva has in Europe
Slide 28: Our International markets goal
Our International markets goal 28 International sales, $bn 7.0 CAGR = 23% CAGR = 22% 2.0 1.0 0.3 2003 2006 2009E 2015 * includes all business Teva has in International markets
Slide 29: Geographic diversification of sales mix
Geographic diversification of sales mix 29 Sales by geography $bn CAGR % %ofoftotal total 31.0 14.3% 14 7.0 23.2% 22 24 18.6% 30 9.2 13.9 International 2.0 Europe 3.3 62 14.8 9.5% 48 North America 8.6 2009E 2015 2009E 2015
Slide 30: Growth and balance within our branded business
Growth and balance within our branded business 30 Sales 2009E = $4.2 bn Sales 2015 = $9.2 bn BioS, 2% BioS, 9% Women’s Women’s health health 12% 17% Respiratory Innovative 22% Innovative 48% 64% Respiratory 26%
Slide 31: Mix of generics and branded remains constant
Mix of generics and branded remains constant 31 Sales $bn CAGR % of total 31.0 14.3% 14.0% 30 30 9.2 13.9 Branded 4.2 70 70 21.8 14.4% Generics 9.7 2009E 2015 2009E 2015
Slide 32: Closing remarks
Closing remarks 32 Continued strong and profitable sales and EPS growth Solid financials with strong cash generation Teva in 2015 will be more diversified and less dependent on a single product or geography
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