Teva Pharmaceutical Industries Limited · TASE:TEVA
Teva Pharmaceutical Industries — Bank of America Healthcare Conference 2015
23 slides from Teva Pharmaceutical Industries's conference presentation, May 13, 2015
Slide 1: Bank of America Healthcare Conference
1 Bank of America Healthcare Conference May 13, 2015 Eyal Desheh EVP, Chief Financial Officer, Teva Pharmaceutical Industries
Slide 2: Safe Harbor Statement
2 2 Safe Harbor Statement This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are based on management’s current beliefs and expectations and involve a number of assumptions, known and unknown risks and uncertainties
Slide 3: Additional Information
3 3 Additional Information This communication is for informational purposes only and does not constitute an offer to buy or solicitation of an offer to sell any securities. This communication relates to a proposal which Teva has made for a business combination transaction with Mylan. In furtherance
Slide 4: Significant Achievements on All of Teva's "Must Wins"
4 Significant Achievements on All of Teva’s “Must Wins” 4 2014 going into 2015
Slide 5: Solidified Base Manifested in Strong Performance in 2014
5 5 Solidified Base Manifested in Strong Performance in 2014 Despite negative headwind from FX 2014* 2013* Change Revenues $m 20,272 20,314 -- Operating Income 5,732 5,198 10% $m 28.3% 25.6% EPS $ 5.07 5.01 1% Cash Flow from Operations $m 5,127 3,237 58% *Net income, operating income and EPS are non
Slide 6: Solidified Base Manifested in Strong Performance
6 6 Solidified Base Manifested in Strong Performance Continues into 2015… Q1 2015* Q1 2014* (1) Change Revenues $m 4,982 5,001 (0.4%) Operating Income $m 1,533 1,381 11% Net Income $m 1,165 1,051 11% EPS $ 1.36 1.23 11% Cash Flow from Operations $m 1,354 898 51% Free Cash Flow $m 1,213 673 80% *Net
Slide 7: Increased our 2015 Business Outlook
7 7 Increased our 2015 Business Outlook Despite Currency Volatility and Approval of generic Copaxone® 2015E Net Revenues ($b) 19.0-19.4 Gross Profit (%) 59.5%-61.5% R&D ($b) 1.3-1.4 S&M ($b) 3.3-3.5 G&A ($b) 1.1-1.2 Operating Income* ($b) 5.7-5.9 Finance Expenses ($m) 250-290 Tax (%) 19%-21% Number
Slide 8: Continued Growth and Improvement in Generics
8 8 Continued Growth and Improvement in Generics Continue to improve Execution of growth Clear strategy operating profitability market strategy for OTC More focus on key markets Sales force effectiveness and portfolio management in key markets 50% 45.2% 43.3% 43.5% 41.3% 46% 40% 30% 20.2% 19.9% 21.9
Slide 9: Improving the Specialty Products Portfolio: Maintaining the Copaxone Franchise
9 9 Improving the Specialty Products Portfolio: Maintaining the Copaxone® Franchise Successful Launches Successful launch in the U.S. of Copaxone® 40mg, which has already achieved a 67% conversion rate – Clearly highlights the patient need and demand for this improved product offering Successful
Slide 10: Maintaining Other Specialty Products in 2015
10 10 Maintaining Other Specialty Products in 2015 License to commercialize Eagle’s Bendamustine Rapid Infusion Product (February 2015) – Allows Teva to enhance the Treanda® (bendamustine hydrochloride) franchise, a major revenue contributor, by commercializing a new and improved rapid infusion fo
Slide 11: Building a Promising Pipeline
11 11 Building a Promising Pipeline Phase 1 Phase 2 Phase 3 Registration TV-46763 (abuse deterrent) Laquinimod Laquinimod CEP-33237 ER Hydrocodone (abuse det.) Pain Multiple sclerosis (progressive forms) Multiple sclerosis (relapsing remitting) US - Pain TV-46139 (abuse deterrent) Laquinimod Flutica
Slide 12: Improved Financial Performance and Resources
12 12 Improved Financial Performance and Resources $ billion 12.2 11.8 11.2 10.6 10.3 11.0 Debt Equity 22.6 23.0 23.6 23.7 23.4 22.7 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Leverage 35% 34% 32% 31% 31% 33% Debt/EBITDA 2.16 2.04 1.90 1.76 1.67 1.73
Slide 13: Mylan – Proposed Transaction Overview
13 13 Mylan – Proposed Transaction Overview $82.00 per share Proposed Price and Approximately 50% cash / 50% stock Consideration Implies a total equity value of approximately $43 billion 48.3% premium to the unaffected Mylan stock price of $55.31 on March 10, 2015, after which there Signific
Slide 14: Value Creating proposal for Teva & Mylan Stakeholders
14 14 Value Creating proposal for Teva & Mylan Stakeholders Industry-leading company, well-positioned to transform the global generics space • Significantly expanded and more efficient global footprint, including leadership positions and strengthened operations, sales and R&D platforms in attractive
Slide 15: Best Outcome for Mylan's Shareholders
15 15 Best Outcome for Mylan’s Shareholders Superior Alternative to a Mylan / Perrigo Combination or Standalone Mylan Teva’s Proposal Mylan Standalone Mylan’s Proposal for Perrigo A clear industry leader No premium Paying a premium rather than Significant synergies No upfront liquidi
Slide 16: Offer Price Comparison
16 16 Offer Price Comparison Price per Share Offer Premium Unaffected as of March 10, 2015 $55.31 48.3% Price of equity issued to Abbott (1) $57.33 43.0% 2018 “extraordinary achievement” stock price target in Mylan special performance-based management incentive program of $73.33 (2) Teva’s offer far
Slide 17: Antitrust is Not a Barrier to Completion
17 17 Antitrust is Not a Barrier to Completion Teva filed for U.S. HSR antitrust clearance on April 21, and that same week initiated the pre-merger notification process with the European Commission; Teva will make and secure other regulatory filings as appropriate Teva expects to secure all nece
Slide 18: Combination Advances Teva's Strategy
18 18 Combination Advances Teva’s Strategy Positions combination as a fully-integrated leading generics and specialty pharmaceutical company Enhances scale, resources and capabilities to drive significant value across the business Advances our goal of being the most competitive manufacturer Opportun
Slide 19: The Strength of the Combined Company
19 19 The Strength of the Combined Company Combined Company Long-Term Impact 2016E 2018E Revenue >$30 billion ~$33 billion Significantly expanded and more efficient global footprint Opportunities for substantial achievable cost synergies and tax EBITDA >$10 billion ~$13 billion savings are estim
Slide 20: Teva's History of Successful Integrations
20 20 Teva’s History of Successful Integrations Over its history, Teva has integrated large, global and diverse organizations from an operational, geographic and cultural perspective Its leadership team: ‒ Creates value by achieving financial synergy goals ‒ Preserves each organization’s core st
Slide 21: Teva is Prepared to Engage
21 21 Teva is Prepared to Engage The Teva Board and management team are committed to consummating a transaction as soon as possible • We are prepared to devote all necessary resources to completing the proposed transaction • We are ready and willing to meet with Mylan and its advisors immediately
Slide 22: Summary
22 22 Summary The results of 2014 and Q1 2015 indicate that Teva is strong, growing, well managed and is demonstrating a robust business and industry leadership model Teva has a strong and experienced management team, and a new board which is fully aligned with management Teva has created a combinat
Slide 23: Thank You
Thank You
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