Scinopharm Taiwan, Ltd. · TWSE:1789
Scinopharm Taiwan — Investor Presentation (October 2012)
37 slides from Scinopharm Taiwan's investor presentation, Oct 29, 2012
Slide 1: ScinoPharm Management Presentation
ScinoPharm Management Presentation TWSE 1789 October 29, 2012 1
Slide 2: Disclaimer
Confidential Disclaimer This material has been prepared by ScinoPharm Taiwan, Ltd. (“ScinoPharm”). Any opinions expressed in this material are subject to change without notice as a result of using different assumptions. ScinoPharm is under no obligation to update or keep current the information cont
Slide 3: Table of Content
Table of Content Overview of ScinoPharm Financial & Operation Results ScinoPharm’s opportunities and competition in China API Market Business Outlook Q&A 3
Slide 4: Overview of ScinoPharm
Overview of ScinoPharm - An Active Pharmaceutical Ingredient Company 4
Slide 5: Background
Confidential Background Established in 1997 in Taiwan by founders from Syntex, current market cap ~ US$1.3 billion Major shareholders include Uni-President Group, Government’s Development Fund, Taiwan Sugar, etc. Facility & organization built by experienced team from Syntex Brand new facilit
Slide 6: Company Overview
Confidential Company Overview Maintain dominant position in Specialty APIs for generic market. Established strong presence in US/EU generic market, some channeled through Indian generic companies. Aggressively developing Japanese and Chinese markets Developed more than 50 generic APIs with 17 la
Slide 7: World Class Facilities
World Class Facilities Taiwan China 6.6 hectares of land, 330K sqft facilities With nearly 250M3 reactor volume with >200M3 reactor volume after 2 large product lines expansion The first phase completed in Q1, 2012. The second phase completed in Q1/Q2 Six of our production lines are equipped
Slide 8: Recent developments in SPT & SPC
Recent developments in SPT & SPC SPT’s Bay 4, 5 will start pilot production and IQ/OQ by the end of October and will start full production in early 2013 SPC’s phase I production facilities have obtained pilot production permits from local authorities SPC’s phase I small, mid, and large product
Slide 9: ScinoPharm - Oncological API Leader
ScinoPharm - Oncological API Leader 9
Slide 10: Comparison among Taiwan API peers
Comparison among Taiwan API peers ScinoPharm is a leader in DMFs and Patents Other Taiwanese API Co.’s ScinoPharm A B C # of DMFs 41 14 11 9 # of patents since 1997 38 9 6 5 10
Slide 11: CPhI
CPhI Convention on Pharmaceutical Ingredients CPhI holds more than 5 major exhibits/year CPhI Madrid, Oct. 9-11, 2012 CPhI India, Nov. 21-23, 2012 CPhI California w/ informEx, Feb. 20-22, 2013 CPhI Japan, Apr. 24-26, 2013 CPhI China, Jun. 25-27, 2013 CPhI Germany, Oct. 22-24, 2013 11
Slide 12: ScinoPharm at CPhI Madrid
ScinoPharm at CPhI Madrid Convention center 12
Slide 13: ScinoPharm at CPhI Madrid
ScinoPharm at CPhI Madrid Convention entrance 13
Slide 14: ScinoPharm at CPhI Madrid
ScinoPharm at CPhI Madrid ScinoPharm Booth 14
Slide 15: ScinoPharm at CPhI Madrid
ScinoPharm at CPhI Madrid ScinoPharm meeting with clients 15
Slide 16: ScinoPharm at CPhI Madrid
ScinoPharm at CPhI Madrid Business meetings 16
Slide 17: ScinoPharm at CPhI Madrid
ScinoPharm at CPhI Madrid Business meetings 17
Slide 18: ScinoPharm at CPhI Madrid
ScinoPharm at CPhI Madrid Business meetings 18
Slide 19: ScinoPharm at CPhI Madrid
ScinoPharm at CPhI Madrid ScinoPharm delegates 19
Slide 20: ScinoPharm at CPhI Madrid
ScinoPharm at CPhI Madrid During 10/9~11 at CPhI Madrid, ScinoPharm had Meetings with more than 100 clients Categories of clients： Generic pharma： 65% New drug co.’s： 20% Others： 15% (incl. agents and starting material suppliers) 20
Slide 21: Observations from CPhI on API industry
Observations from CPhI on API industry Central/Eastern Europe generic market is fast-growing – ScinoPharm has connected to the market Brazil in South America and Indonesia in South East Asia are two potential markets India’s strategy to bring global recognition to its quality EU’s new regula
Slide 22: Financial & Operation Results
Financial & Operation Results 22
Slide 23: P&L - Consolidated
P&L - Consolidated 1~3Q, 2012 1~3Q, 2011 NT$MM, except EPS (reviewed) (reviewed) YoY Net Sales 3,168 2,824 12% Gross Profit 1,601 1,387 15% Gross margin 50% 49% Operating Expense (735) (600) 23% Operating Income 866 787 10% Operating margin 27% 28% Other Rev.(Exp.) 16 (24) 167% Net Income after Tax
Slide 24: Balance Sheet- Consolidated
Balance Sheet- Consolidated NT$MM 2012/09/30 2011/09/30 (reviewed) (reviewed) Cash and Cash Equivalents 2,303 24% 3,195 36% Accounts Receivable 959 10% 669 7% Inventories 1,962 20% 1,403 16% Long-Term Investments 150 2% 195 2% Fixed Assets 3,609 38% 3,099 35% Other Assets 562 6% 404 4% Total Assets
Slide 25: Cash Flows- Consolidated
Cash Flows- Consolidated 1~3Q, 2012 1~3Q, 2011 NT$MM (reviewed) (reviewed) Cash and cash equivalents at 3,294 1,908 beginning of period Cash flows from operating activities 314 922 CAPEX (619) (497) Cash flows from financing activities (631) 898 Other Investing activities (55) (36) Cash and cash equ
Slide 26: Sales by Business
Sales by Business 2011 1-9 2012 1-9 CMO, 9% CRO, 2% CMO, 15% CRO, 3% Generic, 82% Generic, 89% 26
Slide 27: Sales by Indications
Sales by Indications 2011, 1-9 2012, 1-9 Others, Others, 11% 15% CNS, 16% Oncology, 57% Oncology, CNS, 32% 69% 27
Slide 28: ScinoPharm's opportunities and competition in China API Market
ScinoPharm’s opportunities and competition in China API Market 28
Slide 29: China API market trends
Confidential China API market trends Government’s 12th five-year plan sets a goal for pharmaceutical industry to grow at a CAGR of 20%, and Explicitly requires 100% compliant with the latest GMP for nationwide pharma manufacturing. Also encourages pharma co.’s to apply for int’l certifications.
Slide 30: ScinoPharm aims on China Market
Confidential ScinoPharm aims on China Market ScinoPharm exports APIs to China market and has 6 customers ScinoPharm Changshu complies with latest GMP standards and will benefit from the reduced competition after 12th five-year plan drives out disqualified companies ScinoPharm’s specialty in on
Slide 31: SPC's Strategic Goals
Confidential SPC’s Strategic Goals Short-term goal: 1 year Expand capacities – To be able to produce intermediates and provides expanded capacities for SPT Mid-term goal: 3 years Adopt Double A (API+ANDA) business model – To team up with pharma co.’s to apply for ANDA in US/EU and export final drug
Slide 32: ScinoPharm Vs. Chinese API Peers
Confidential ScinoPharm Vs. Chinese API Peers ScinoPharm Chinese API Peers Focus on high entry-barrier Mostly producing lower entry- oncological APIs. Less barrier APIs. Fierce competition, higher margin competition, lower margin Mostly focusing on domestic Marketing globally, competitive market, pr
Slide 33: ScinoPharm's "Double A" plan
ScinoPharm’s“Double A”plan Strategic Alliance ScinoPharm is in discussion with one of the top 3 Chinese pharma co.’s to develop oncological drugs for China market Drug Product Co-development ScinoPharm is partnering with a marketer and a formulation producer to co-develop oncology injectables fo
Slide 34: Business Outlook
Business Outlook 34
Slide 35: 2012 Product Launch Plan
2012 Product Launch Plan Regional WW Sales API Region Indications Brand Marketer Sales Antithrombotic, $US $US Argatroban US GSK Anticoagulant 139MM* 205MM* Galantamine Alzheimer’s $US $US EU Janssen HBr disease 314MM* 527MM* $US $US Modafinil US Antinarcolepsy Cephalon 1,078MM* 1,182MM* Riluzole $U
Slide 36: Outlook
Outlook Sustain Leadership Position in Oncological Injectable APIs Continue developing small molecule oncological injectable APIs and expand into other areas with high technology barriers including Peptides Expand Presences in China Expansion of API business to timely capture the Chinese market
Slide 37: Brand Quality with Asian Advantages
Confidential Brand Quality with Asian Advantages www.scinopharm.com 37
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