Adams Respiratory Therapeutics Inc
Adams Respiratory Therapeutics — Q3 FY2007 Earnings Presentation
21 slides from Adams Respiratory Therapeutics's earnings presentation, May 10, 2007
Slide 1: Fiscal 2007 Third Quarter Earnings Results
Fiscal 2007 Third Quarter Earnings Results May 10, 2007
Slide 2: Safe Harbor
Safe Harbor This presentation contains certain "forward-looking" statements. These statements are based on the current estimates and assumptions of the management of Adams Respiratory Therapeutics, Inc. (or "Adams") as of the date of this presentation and are naturally subject to uncertainty and cha
Slide 3: Michael J. Valentino, President and Chief Executive Officer
Michael J. Valentino President and Chief Executive Officer
Slide 4: Solid Top-Line Results
Solid Top-Line Results Mucinex and Delsym achieved highest year- over-year sales growth in the category(1) Mucinex and Delsym exited season with significant market share gains(1) Increased consumer awareness(2) Key brands supported with effective advertising and professional marketing Source: Inform
Slide 5: Strong Growth in Revenues
$14.0 $61.3 $160.2 $284.7 $0.0 $50.0 $100.0 $150.0 $200.0 $250.0 $300.0 2003 2004 2005 2006 2006 2007 12 - Months Ended 9 - Months Ended Strong Growth in Revenues (in millions) 6/03 3/06 6/04 6/05 YoY Growth 53% CAGR '03-'06 158 % 3/07 6/06 $239.1 $186.3
Slide 6: Rita M. O'Connor, Chief Financial Officer and Treasurer
Rita M. O'Connor Chief Financial Officer and Treasurer
Slide 7: Fiscal 2007 Third Quarter Solid Top-Line Results
Fiscal 2007 Third Quarter Solid Top-Line Results Net Sales totaled $84.0 11% growth versus the prior period We believe net sales results in the third quarter were impacted by: The shift in trade purchases to the first half of fiscal 2007 Lower severity of upper respiratory conditions during the 2006
Slide 8: Fiscal 2006 Backorder - Reconciliation of Reported Net Sales Growth
(in millions) 1Q 2Q 3Q Net Sales reported FY'06 $ 47 $ 63 $ 76 Backorder ~10 ~10 (9) Proforma Net Sales FY'06 $ 57 $ 73 $ 67 Net Sales reported FY'07 $ 90 $ 111 $ 84 Reported growth 92% 75% 11% Proforma growth 58% 51% 25% Fiscal 2006 Backorder - Reconciliation of Reported Net Sales Growth
Slide 9: 2007 Fiscal Third Quarter Net Sales by Product
2007 Fiscal Third Quarter Net Sales by Product $29.9 $26.6 $8.2 $16.2 Acquired 6/06 $4.1 Launched 8/06 ($ in millions) Total Net Sales = $84.0MM* +11% vs. Q3 FY06 *Includes ($0.9) million in Humibid sales, reflecting Humibid product returns.
Slide 10: Income Statement Overview
Income Statement Overview (1) (1) Includes a $4 million charge associated with various product returns. 3Q07 3Q06 Net sales 84.0 $ 76.0 $ Gross Margin % 71.8% 78.7% SG&A 52.6 28.4 Product development 5.0 3.8 Effective tax rate 25.1% 38.7% Net income 2.9 $ 16.9 $ Diluted EPS 0.08 $ 0.46 $
Slide 11: Robert D. Casale, Chief Operating Officer
Robert D. Casale Chief Operating Officer
Slide 12: C/C/A/S Category Growth
Source: IRI C/C/A/S category dollar and unit growth for the 28 weeks ended 3/25/07 in F/D/Mx. C/C/A/S Category Growth 10.2 9.8 10.9 10.6 4.1 4.1 6.5 1.5 Total Category CCAS Tablets CCAS Liguids Cough Syrup/Sore Throat Dollar % Chg Unit % Chg
Slide 13: Adams' Franchises Lead Category in Dollar Sales Growth
Adams' Franchises Lead Category in Dollar Sales Growth in Dollar Sales Growth in Dollar Sales Growth Source: IRI C/C/A/S category major franchise dollar sales trend for the 28 weeks ended 3/25/07 in F/D/Mx.
Slide 14: Adams Gains Strength in C/C/A/S Category
Chg VYA -0.6 +2.5 +1.3 +0.3 -0.7 -0.7 +0.4 0.0 +0.4 +0.1 +0.2 +0.4 +0.5 +0.2 Source: IRI C/C/A/S category major franchise dollar share trend for the 28 weeks ended 3/25/07 in F/D/Mx. Adams Gains Strength in C/C/A/S Category Total Adams share = 11.3
Slide 15: Rapidly Expanding OTC Product Portfolio in Fiscal 2008
Rapidly Expanding OTC Product Portfolio in Fiscal 2008 Fiscal 2008
Slide 16: Launch Strategy Considerations
Launch Strategy Considerations 2006 2007 Dec 2006 NDA Submission March 2007 NDA Submission Accepted by FDA Oct 2007 FDA PDUFA 2008 Earliest *LAUNCH Possible *Pending FDA Approval DDMAC Review 2009 FY2008: Set the table Physician targeting Managed care coverage FY2009: Fully optimized launch
Slide 17: Codeine Cough Market Potential
Guaifenesin + Codeine 4,310,557 Promethazine + Codeine 5,795,735 All other Codeine Combos 179,250 Codeine Market = 10.3 MM TRx's Codeine Cough Market Potential Source: IMS Health National Prescription Audit TRx MAT 1/07. *Parity price with branded molecule (Tussionex(r)) = $721MM Market Potential @
Slide 18: Mucinex With Codeine Opportunity
$9-11 MM $48-55 MM $100-120 MM $160-190 MM $240-280 MM 1-2% 5-6% 10-12% 14-18% 20-23% 0 50 100 150 200 250 FY 2008 FY 2009 FY 2010 FY 2011 FY2012 Total sales across both sub - - markets. Note: Uncertainty in the forecast is captured as a +/ - - 10% range around the expected values Launch years will
Slide 19: Michael J. Valentino, President and CEO
Michael J. Valentino President and CEO
Slide 20: Mucinex SE, DM and D launch history and market size
6.7 MM Rx 1.5 MM Rx Consumer Advertising February 2006 Competing Product Removal? Competing Product Removal? Pending FDA Action Consumer Advertising November 2004 Competing Products Removed December 2003 Launched July 2002 Approved July 2002 $125 MM Rx market $21 MM Rx market Consumer Advertising No
Slide 21: Fiscal 2007 Third Quarter Earnings Results
Fiscal 2007 Third Quarter Earnings Results May 10, 2007
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