Teva Pharmaceutical Industries Limited · TASE:TEVA
Teva Pharmaceutical Industries — 26th Annual JPMorgan Healthcare Conference (January 2008)
35 slides from Teva Pharmaceutical Industries's conference presentation, Jan 7, 2008
Slide 1: 26th Annual JPMorgan Healthcare Conference
26th Annual JPMorgan Healthcare Conference Dan Suesskind, CFO Teva Pharmaceutical Industries Ltd. Bill Marth, President & CEO Teva Pharmaceuticals USA January 7, 2008
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 segments – Finished Dosage Generic Pharmaceuticals – Active Pharmaceutical Ingredients (API) – Specialty Branded Pharmaceuticals • Presence in 60 countries; approximately 26,000 employees • Rank amon
Slide 4: Financial Strength
Financial Strength 1-9/07 1-9/06 % Change Sales ($ Millions) 6,832 6,131 11% Net Income ($ Millions) 1,382 1,434 (4%) Earnings per Share (diluted $) 1.69 1.77 (5%) Cash Flow from Operations 1,268 1,294 P/E Ratio 2008 (F.C. Consensus $2.66) 18 Market Capitalization (as of Jan. 4, 2008: $47.83) $38.5
Slide 5: Sales By Region
Sales By Region 1-9/07: $6,832 Million 1-9/06: $6,131 Million North America, 58% North America, 61% TSP** 8% ROW,2% ROW,2% TSP**, 3% Latin America, Latin America, Europe, 26% Israel, 6% Europe, 24% 6% Israel, 4% CEE 4% 4% CEE 3% * Western Europe and Hungary 5 ** TSP as % of North America
Slide 6: Teva's Core Strengths in Generics
Teva’s Core Strengths in Generics R&D Portfolio Global Supply Global Reach Chain Operations in over Over 40 Production 50 countries facilities Managing the Environment Technology API/ Development Vertical Integration Oral and Semi solids Approximately Injectables 250 Compounds Modified Release Inhal
Slide 7: Q3/2007 – North America Pharmaceutical Sales
Q3/2007 – North America Pharmaceutical Sales ($ M illions) 1,365 1,315 719 708 452 Q3/03 Q3/04 Q3/05 Q3/06 Q3/07 7
Slide 8: Absolute growth of generics takes off in the last four years; brands decline
Absolute growth of generics takes off in the last four years; brands decline 8
Slide 9: Generic TRx Continue to Gain Traction
Generic TRx Continue to Gain Traction 12% 9
Slide 10: Generic Industry Consolidation
Generic Industry Consolidation Top 4 have 55% m arket share com bined IMS TRx MAT Jun-97 IMS TRx MAT Jun-07 (Top 4 = 35%) (Top 4 = 55%) All Others Teva 65% All Others 21% 30% Mylan Mylan Actavis 13% 12% 4% Mallinckrodt Watson Teva 5% Barr Zenith Apothecon Sandoz 11% 8% 6% Goldline (Bristol) 10% (Iva
Slide 11: Top U.S. Pharmaceutical Companies
Top U.S. Pharmaceutical Companies (In thousands) Generic companies only All pharmaceutical companies Total Rx’s Total Rx’s 1 Teva USA 431,054 1 Teva USA 443,824 2 Mylan 276,753 2 Mylan 278,627 3 Watson 223,671 3 Pfizer 269,682 4 Sandoz 192,609 4 Novartis 267,918 5 Barr 137,581 5 Watson 223,674 6 Mal
Slide 12: Pantoprazole – Protonix
Pantoprazole – Protonix® • Annual sales of Wyeth’s tablet products are about $2.5 B* • Teva and Sun share 6-month first-to-file exclusivity • Litigation on the compound patent is pending in the District of New Jersey – Sun and Kudco (who is not FTF) are also involved in the litigation – No trial dat
Slide 13: U.S. Generic Industry's Largest Pipeline
U.S. Generic Industry’s Largest Pipeline 165 ANDAs – over $103 billion in total brand sales 94 Paragraph IV Filings 45 First-to-File – over $38 billion in total brand sales As of January 2, 2008 13
Slide 14: SABA TRx Weekly Market (Share)
SABA TRx Weekly Market (Share) 100% HFAs 90% CFCs 80% 70% 60% 50% 40% 30% 20% 10% 0% 9/1 9/29 10/27 11/24 12/22 1/19 2/16 3/16 4/13 5/11 6/8 7/6 8/3 8/31 9/28 10/26 11/23 12/21 Source: IMS NPA, Sept 1 – Dec 21, 2007 14
Slide 15: SABA-HFA TRx Market (Share)
SABA-HFA TRx Market (Share) 70% 60% 50% ProAir HFA 40% Proventil HFA 30% Ventolin HFA 20% Xopenex HFA 10% 0% 5-Jan 2-Feb 2-Mar 30-Mar 27-Apr 25-May 22-Jun 20-Jul 17-Aug 14-Sep 12-Oct 9-Nov 7-Dec 15 Source: IMS NPA, Jan 1 – Dec 21, 2007
Slide 16: Q3/2007 – Europe Pharmaceutical Sales
Q3/2007 – Europe* Pharmaceutical Sales ($ M illions) Up 22 % 567 464 342 275 180 Q3/03 Q3/04 Q3/05 Q3/06 Q3/07 * Western Europe and Hungary 16
Slide 17: Western Europe is emerging as a pharmacy-focused region
Western Europe is emerging as a pharmacy-focused region, facilitating higher penetration Pharmacist / UK Payer Substitution influence Netherlands Gx model France Germany Italy Spain Market discontinuities Branded Physician Gx model influence Hungary Generic penetration 17 Source: Teva Europe
Slide 18: Q3/2007 – International (ROW) Pharmaceutical Sales
Q3/2007 – International (ROW) Pharmaceutical Sales ($ Millions) Up 12% 354 316 130 107 86 Q3/03 Q3/04 Q3/05 Q3/06 Q3/07 18
Slide 19: TAPI – Teva Active Pharmaceutical Ingredients
TAPI – Teva Active Pharmaceutical Ingredients Teva’s API division is the Industry leader for active pharmaceutical ingredients (API) for generics Manufactures and sells approx. 250 products to Teva's finished pharmaceutical product businesses and to third parties Be First – Stay Last Provides Teva w
Slide 20: Teva API Sales
Teva API Sales ($ Millions) Third Party Internal Up 24% 1,327 1,067 1,046 996 Down 5% 940 587 Up 12% 435 524 421 Down 3% 654 501 371 740 543 Up 36% Down 6% 439 611 575 283 2003 2004 2005 2006 Q1-Q3/06 Q1-Q3/07 20
Slide 21: Q3/2007 – Copaxone In-Market Global Sales
Q3/2007 – Copaxone® In-Market Global Sales ($ Millions) US Up 20% Non US Up 24% 1,414 1,176 441 26% 936 400 394 354 25% 720 160 916 17% 311 782 128 225 280 625 226 495 24% 2003 2004 2005 2006 Q3/06 Q3/07 21
Slide 22: Copaxone 40 mg
Copaxone® 40 mg • Copaxone®, at a 40 mg/day dose, has the potential to provide better efficacy compared to all approved first-line treatments • Results of 9-month Phase II study, which compared to Copaxone® 20 mg/day – Patients taking the higher dose showed a 38% greater reduction in inflammatory di
Slide 23: Laquinimod
Laquinimod • A novel, oral product for relapsing MS • Licensed from Sweden’s Active Biotech • Positive results of Phase IIb study – Demonstrated that an oral 0.6 mg dose of laquinimod given daily significantly reduced MRI disease activity by 55 percent in RRMS patients – Favorable trend towards redu
Slide 24: Azilect for Parkinson's Disease
Azilect® for Parkinson’s Disease • Novel, potent, second generation, selective MAO-B Inhibitor approved for both monotherapy in early disease and adjunct therapy in more advanced stages • Now available in 29 countries since initial launch in Israel in early 2005 • Offers patients the benefit of uniq
Slide 25: Innovative Products and Growth Opportunities
Innovative Products and Growth Opportunities Lupus Alzheimer (Phase II) (Phase II) ALS (Phase II) CIS Copaxone® ALS (Phase II) Multiple Sclerosis Multiple Sclerosis Copaxone® MS (Oral Phase III) Increased efficacy Parkinson’s Parkinson’s Azilect® Disease modification Hemato-Oncology (Phase II) Respi
Slide 26: We Focus on Shareholder Value
We Focus on Shareholder Value 26
Slide 27: Cash Flow Highlights
Cash Flow Highlights ($ Millions) Q3/07 Q2/07 Q1/07 Q4/06 Q3/06 Q2/06 YR2006 Net Income 525 515 342 461 606 488 546 Cash flow from operating activities 332 437 499 765 793 212 2,058 - - Acquisition of companies 17 5 2 24 3,587 Purchase of fixed assets (net of proceeds from sale) 104 106 149 129 76 9
Slide 28: Financial Strength
Financial Strength ($ Billions) 30-Sep-2007 30-Jun-2007 Total Equity 12.92 B 12.06 B Total Debt 5.31 B 5.51 B of which: short-term 1.95 B 1.52 B long-term * 3.36 B 3.98 B Leverage ** 29% 31% * Includes both converts of $1.4 bn and straight debt of $1.5 mn issued on Q1/06 ** [DEBT/(Debt+Equity)] 28
Slide 29: Consolidated Statement of Income
Consolidated Statement of Income ($ Millions) % of Sales ($ Millions) Q3/07 Q2/07 Q1/07 Q4/06 Q3/06 Q3/07 Q2/07 Q1/07 Q4/06 Q3/06 Sales 2,366 2,386 2,080 2,277 2,286 100% 100% 100% 100% 100% Gross profit 1,250 1,243 1,037 1,103 1,262 53% 52% 50% 48% 55% R&D – net 141 137 135 137 135 6% 6% 6% 6% 6% S
Slide 30: Sales (in $ Millions)
Sales (in $ Millions) +11% 8,408 6,832 6,131 5,250 4,799 3,276 2003 2004 2005 2006 1-9/06 1-9/07 30
Slide 31: R&D (in $ Millions)
R&D (in $ Millions) +15% 495 413 369 358 338 214 2003 2004 2005 2006 1-9/06 1-9/07 31
Slide 32: Dividends (in $ Millions)
Dividends (in $ Millions) +29% 246 224 175 174 133 88 2003 2004 2005 2006 1-9/06 1-9/07 32
Slide 33: NASDAQ Top 20 Companies
NASDAQ Top 20 Companies As of Jan. 7, 2007 1 MSFT Microsoft Corporation $ 321,639,992,820 2 CSCO Cisco Systems, Inc. $ 158,469,178,040 3 AAPL Apple Inc. $ 157,640,977,000 4 GOOG Google Inc. $ 154,718,901,000 5 INTC Intel Corporation $ 132,551,490,000 6 ORCL Oracle Corporation $ 112,822,459,300 7 QCO
Slide 34: Driving Growth, Expanding Leadership
Driving Growth, Expanding Leadership Teva’s growth is fueled by: • Increasing demand globally for generics • Expanding global market reach • The generic industry’s leading product offering • Unmatched vertical integration • The industry’s most robust generic pipeline • Growing specialty pharmaceutic
Slide 35: 26th Annual JPMorgan Healthcare Conference
26th Annual JPMorgan Healthcare Conference Dan Suesskind, CFO Teva Pharmaceutical Industries Ltd. Bill Marth, President & CEO Teva Pharmaceuticals USA January 7, 2008
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