Recordati S.p.a. · MIL:REC
Recordati — Italian Mid Caps Conference 2006
28 slides from Recordati's conference presentation, Jun 23, 2006
Slide 1: Italian Mid Caps Conference, 23 June 2006, London
Italian Mid Caps Conference, 23 June 2006, London 2006 - 2010
Slide 2: Company profile
Company profile ¾ A fully integrated European pharmaceutical group listed on the Italian Stock Exchange since 1984 ¾ Original research focused on cardiovascular and urological fields ¾ Marketing operations in all the main European countries (France, Germany, Italy, Spain, UK) covering a broad range
Slide 3: Pharmaceutical revenue by geographical area
Pharmaceutical revenue by geographical area UK International licensees Spain 2% 19% 7% Germany 8% Total revenue France Pharmaceuticals 23% 94% Italy 41% Data: First quarter 2006 Total revenue € 162 m Pharmaceutical Pharmaceutical revenue € 153 m chemicals 6% 2
Slide 4: Pharmaceutical revenue
Pharmaceutical revenue % of pharmaceutical Licensed revenue 33% Zanidip® (lercanidipine) 29% Peptazol® /Ulcotenal® 9% (pantoprazole) 2% 65% Elopram® /Entact® 8% (citalopram/escitalopram) Other revenue Hexa line (biclotimol) 4% Tora-Dol® (ketorolac) 3% Proprietary Claversal® (mesalazine) 2% Isocef® (
Slide 5: ZANIDIP (lercanidipine)
ZANIDIP® (lercanidipine) ¾ Latest generation calcium-channel blocker. Lipophilic dihydropyridine. ¾ Natural once a day. Potent, long-lasting vasodilatory activity. Highly vasoselective with gradual onset, smooth and uniform blood pressure lowering activity. ¾ Efficacy as best in class. Significantly
Slide 6: Lercanidipine launch status
Lercanidipine launch status ¾ Launched in 82 countries, approximately one third of world market for calcium channel blockers ¾ Major European launches ¾ 1998 Italy, Spain, UK ¾ 2000 Germany ¾ 2001 France ¾ Approved in additional 14 countries ¾ Filed for approval in additional 12 countries 5
Slide 7: % share of CCB market
Lercanidipine as a % of all calcium channel blockers Bubble size represents $ market value of CCB’s France 20 % share of CCB market Germany Australia Italy 15 S.Korea Austria 10 Spain Belgium U.K. 5 Holland 0 3 4 5 6 7 8 9 Years from launch Source: IMS data – 12 months rolling to March 2006 6
Slide 8: R&D pipeline
R&D pipeline Pre Phase II Filed for Discovery Phase I Phase III Clinical P.O.C. approval Zanipress® tramadol fentanyl patch cyclosporin prulifloxacin rupatadine silodosin stannsoporfin pitavastatin REC 0545 REC 2615 lercanidipine MR REC 0765 REC 0206 REC 0035 3 new projects Project S 7
Slide 9: ZANIPRESS
ZANIPRESS® ¾ Lercanidipine-enalapril fixed combination for the treatment of hypertension ¾ New aggressive targets for blood pressure control ¾ Combination of drugs needed for most patients ¾ Patient compliance ¾ Fixed combinations will play a significant role in the future hypertension market ¾ File
Slide 10: Lercanidipine life cycle management
Lercanidipine life cycle management ¾ 20mg strength approved in Europe and other countries. Launched in 14 countries, roll-out continues ¾ Various collaborations and in-house programs for the development of modified release formulations for the European and other markets are ongoing ¾ Patent life in
Slide 11: Fentanyl transdermal patch
Fentanyl transdermal patch ¾ Central-acting potent analgesic to treat moderate to severe chronic pain such as that experienced in cancer ¾ Transdermal patch designed to deliver fentanyl through the skin for up to three days ¾ Originator: Lavipharm ¾ Market of reference: class N2A sales in the 5 majo
Slide 12: Rupatadine
Rupatadine ¾ Latest generation systemic antihistamine indicated for the treatment of allergies ¾ Originator: Uriach ¾ Market of reference: class R6A sales in the 5 major EU pharma markets, approx. € 700 million. ¾ Launched in Spain (Alergoliber®), further launches expected by 2007 11
Slide 13: Silodosin
Silodosin ¾ Selective alpha-1A receptor antagonist indicated for the symptomatic treatment of benign prostatic hyperplasia ¾ Benign prostatic hyperplasia increasing in frequency due to the progressive ageing of the population ¾ Originator: Kissei ¾ Market of reference: class G4C European sales, appr
Slide 14: Stannsoporfin
Stannsoporfin ¾ Inhibits the production of bilirubin in cases of hyperbilirubinemia of different origin. Under development by InfaCare for the treatment of neonatal hyperbilirubinemia (jaundice). ¾ Severe hyperbilirubinemia, if untreated, can lead to severe brain damage. If approved, stannsoporfin c
Slide 15: Rec 0545
Rec 0545 ¾ Rec 0545 is a potent and selective antagonist of the 5-HT1A serotoninergic receptor under study for the treatment of overactive bladder and incontinence ¾ A completely new approach for controlling overactive bladder. Increases bladder volume capacity (or time between micturitions) without
Slide 16: Other urogenital programs
Other urogenital programs ¾ Potent antagonists of the α1-adrenergic receptors, highly selective for the lower urogenital tract, were pioneered by Recordati and are potentially useful in the development of treatments for benign prostatic hyperplasia (BPH) ¾ Two other potential biological targets for
Slide 17: First quarter 2006 highlights
First quarter 2006 highlights ¾ Revenue € 161.7 million, up 9.2% ¾ Pharmaceutical sales up 11.2% ¾ International pharmaceutical sales up 13.8% ¾ Lercanidipine sales up 29.0% ¾ Operating income € 34.5 million, up 23.7% ¾ Net income € 21.3 million, up 28.6% 16
Slide 18: Composition of revenue
Composition of revenue (million euro) 1Q 2006 1Q 2005 Change % Italy 62.8 58.3 7.7% France 34.9 31.8 9.8% Germany 11.9 12.5 (4.7)% Spain 10.7 8.8 21.6% United Kingdom 3.1 - n.a. International licensees 29.2 25.8 13.1% TOTAL PHARMACEUTICALS 152.6 137.2 11.2% PHARMACEUTICAL 9.2 11.0 * (16.6)% CHEMICAL
Slide 19: Sources of growth
Sources of growth (% change, first quarter 2006 over Volume Price Exchange Total first quarter 2005) PHARMACEUTICALS 11.5 (0.7) 0.4 11.2 PHARMACEUTICAL (17.5) (2.7) 3.6 (16.6) CHEMICALS * TOTAL CHANGE 9.4 (0.9) 0.7 9.2 * Excludes discontinued operations 18
Slide 20: Lercanidipine sales
Lercanidipine sales (million euro) 1Q 2006 1Q 2005 Change % Italy 12.4 11.2 11.3% France 8.6 6.6 29.4% United Kingdom 3.1 - n.a. Spain 1.8 1.3 37.6% DIRECT SALES 25.9 19.1 35.6% 59.2% 56.4% SALES TO LICENSEES 17.8 14.8 20.5% 40.8% 43.6% TOTAL LERCANIDIPINE 43.7 33.9 29.0% SALES 100.0% 100.0% 19
Slide 21: First quarter 2006 results
First quarter 2006 results (million euro) 1Q 2006 1Q 2005* Change % Revenue 161.7 148.1 9.2% Gross Profit 108.4 96.0 12.8% as % of revenue 67.0% 64.8% SG&A Expenses 62.5 57.4 8.9% as % of revenue 38.6% 38.7% R&D Expenses 11.7 10.8 as % of revenue 7.3% 7.3% 8.5% Operating Income 34.5 27.9 23.7% as %
Slide 22: Net financial position
Net financial position (million euro) 31 Mar 2006 31 Dec 2005 Change Cash and short term financial 176.4 162.8 13.6 investments Bank overdrafts (7.2) (6.0) (1.2) Loans – due within one (21.1) (22.7) 1.6 year Loans – due after one year (98.2) (107.9) 9.7 NET FINANCIAL POSITION 49.9 26.2 23.7 21
Slide 23: Outlook for 2006
Outlook for 2006 (million euro) 2005 2006 REVENUE 576.1 >600 OPERATING INCOME 111.1 >120 NET INCOME 64.5 >75 Assumptions: Not considering any future acquisitions 22
Slide 24: 2006 - 2010 plan
2006 - 2010 plan ¾ Priority to reinforce current geographic coverage in key EU markets ¾ Entry into additional European markets ¾ Sales of corporate products to increase proportionally over local products ¾ Continued attention to the life cycle management of lercanidipine ¾ R&D expenditure to increa
Slide 25: 2006 - 2010 plan
2006 - 2010 plan ¾ Profitability of existing business to increase driven by gross margin ¾ Initially lower EBIT margin from acquired businesses expected to increase in following years ¾ Acquisitions accretive, in EPS terms, from the start ¾ € 500 million to be invested in the acquisition of companie
Slide 26: 2010 targets
2010 targets (million euro) 2005 2010 CAGR REVENUE 576.1 1,000 12% OPERATING INCOME 111.1 >200 >12.5% NET INCOME 64.5 >120 >13% Assumptions: Includes company and/or product acquisitions 25
Slide 27: 2010 revenue target
2010 revenue target (million euro) € 1,000 (CAGR 12%) a nd ct ns d u itio o s pr qui ing ac ud ny cl a In mp € 750 co (CAGR 5%) a nic or g € 576 2005 2010 26
Slide 28: Safe harbour and company profile
Safe harbour and company profile Statements contained in this presentation, other than historical facts, are “forward- “forward-looking statements” (as such term is defined in the Private Securities Litigation Reform Act of 1995). 1995). These statements are based on currently available information,