Slide 1: Jefferies 2010 Global Life Sciences Conference, New York
Jefferies 2010 Global Life Sciences Conference, New York A European specialty pharmaceutical company
Slide 2: Company Profile and Strategy
COMPANY PROFILE AND STRATEGY Company Profile • Mid sized pharmaceutical company with a European focus ((2800 employees, p y , of which 1400 field force)) OE • R&D in the cardiovascular and urology fields and in OE treatments for rare diseases OE • Marketing operations in the main Western European OE
Slide 3: Geographical Breakdown of Pharmaceutical Revenue
GEOGRAPHICAL BREAKDOWN OF PHARMACEUTICAL REVENUE Portugal 4.5% Spain 3.9% Germany 8.6% UK 1.4% Other W. European countries 2.4% Russia Turkey Russia, Turkey, other CEE 8 8.1% 1% France 20.6% Other international sales 19.6% Italy 30.9% Data: First quarter 2010 Pharmaceutical revenue € 179.6 m 2
Slide 4: Composition of Revenue by Business
COMPOSITION OF REVENUE BY BUSINESS Zanipress® 3.5% Other corporate products 7.3% Zanidip® 23.8% Orphan drugs 8 8.5% 5% Local product portfolios 49.0% Pharmaceutical chemicals 3 3.4% 4% Entact®/Elopram® 6% (escitalopram/citalopram) - Italy Other revenue 4.5% Peptazol® (pantoprazole) – Italy 3% Methad
Slide 5: Zanidip (lercanidipine)
CORPORATE PRODUCTS ZANIDIP® (lercanidipine) (l idi i ) • Calcium channel blocker indicated for the treatment of hypertension. Lipophilic dihydropiridine discovered and developed by Recordati. Efficacy as best in class, superior tolerability. • On the market in 95 countries. • Patent expired end Janu
Slide 6: Zanipress (lercanidipine+enalapril)
CORPORATE PRODUCTS ZANIPRESS® (lercanidipine+enalapril) (l idi i l il) • Fixed combination of lercanidipine (a CCB) • Fixed combinations will play a significant role in the future and enalapril (an ACE-I) indicated for the hypertension market treatment of hypertension. Two strengths: • New aggressiv
Slide 7: Drugs for the Treatment of Rare Diseases
CORPORATE PRODUCTS DRUGS FOR THE TREATMENT OF RARE DISEASES • Recordati acquired Orphan Europe, a • A unique distribution network from a • Well trained orphan drug specialists European pharmaceutical company centralized unit in Paris serves patients and scientific product support team dedicated to t
Slide 8: Urorec/Silodyx (silodosin)
NEW CORPORATE PRODUCTS UROREC®/SILODYX™ (silodosin) ( il d i ) • BPH market in 19 major European markets approx. € 1.0 billion • Highly selective α1A receptor antagonist indicated • In-market peak sales expected: € 100-150 million for the treatment of symptoms associated with benign prostatic hyperp
Slide 9: Livazo (pitavastatin)
NEW CORPORATE PRODUCTS LIVAZO® (pitavastatin) ( it t ti ) • Highly effective HMG-CoA reductase inhibitor positioning indicated for the treatment of • Similar LDL-C reduction of market leading hypercholesterolaemia best-in-class statins • Semi-exclusive license granted by Kowa • Broad-spectrum effect
Slide 10: R&D Pipeline
R&D Pipeline NAME ORIGINATOR INDICATION DEVELOPMENT STATUS Urorec®/Silodyx™ Kissei Benign prostatic hyperplasia (BPH) Approved Orphan Europe NAGS deficiency Approved in EU and in the U.S. Carbaglu® ((Recordati)) lercanidipine 8/16 mg Pharmathen Essential hypertension Approved pitavastatin Kowa Dysli
Slide 11: New developments for Lower Urinary Tract Symptoms and incontinence
New developments for the Lower Urinary Tract Symptoms (LUTS) and incontinence • Irritative symptoms of the lower urinary tract (mainly urgency and frequency with or without incontinence) are frequent, mainly in women and the elderly. This condition, known as Overactive Bladder (OAB) is either idiopa
Slide 12: Development of drugs for rare diseases
Development of drugs for rare diseases • Carbaglu® (carglumic acid), a drug developed by Orphan Europe will complete the clinical Orphan Europe for the treatment of NAGS deficiency, development of stannsoporfin in Europe. was approved in the EU in 2003 and by the FDA in 2010. Carbaglu® is also in pr
Slide 13: First Quarter 2010 Highlights
FIRST QUARTER 2010 HIGHLIGHTS • Revenue € 185.9 185 9 million million, up 1 1.2%, 2% international sales grow by 1 1.0% 0% • Operating income (EBIT) € 43.1 million, up 6.0% • Net Income € 30.0 million, up 8.5% • Urorec®/Silodyx™ (silodosin) approved in Europe • Carbaglu® (carglumic acid) approved by
Slide 14: Composition of Revenue 1Q 2010 1Q 2009
COMPOSITION OF REVENUE (million Euro) 1Q 2010 1Q 2009 Change % Italyy 55.6 54.9 1.3 France 36.9 38.1 (3.1) Germany 15.5 14.7 5.7 Portugal 81 8.1 11 1 11.1 (26 7) (26.7) Spain 6.9 7.4 (6.7) United Kingdom 2.5 3.5 (29.7) Other Western European countries 4.3 3.7 15.8 Russia, Turkey, other CEE countries
Slide 15: Main Product Sales 1Q 2010 1Q 2009
MAIN PRODUCT SALES (million Euro) 1Q 2010 1Q 2009 Change % Zanidip® (lercanidipine) 44 2 44.2 51.2 (13.7%) Zanipress® (lercanidipine+enalapril) 6.4 3.1 110.4 Other corporate products 13.5 7.6 78.0 Orphan drugs 15.7 11.9 31.6 14
Slide 16: First Quarter 2010 Results
FIRST QUARTER 2010 RESULTS (million Euro) 1Q 2010 1Q 2009 Change % Revenue 185.9 183.7 1.2 Gross Profit 126.2 123.5 2.1 as % of revenue 67.9% 67.2% SG&A Expenses 65.8 65.8 0.0 as % of revenue 35.4% 35.8% R&D & Expenses pe ses 16.4 15.3 53 7.4 as % of revenue 8.8% 8.3% Other Income (Expense), net (0.
Slide 17: Net Financial Position and Shareholders' Equity
NET FINANCIAL POSITION AND SHAREHOLDER’S EQUITY (million Euro) 31 Mar 2010 31 Dec 2009 Change Cash and short-term financial 87.6 93.8 (6.2) investments Bank overdrafts and short-term (6.3) (28.9) 22.6 loans Loans – due within one year (1 8) (1.8) (2.4) 0.6 Loans – due after one year (82.1) (82.2) 0.
Slide 18: 2010-2012 Business Objectives: Sales Development Assumptions
2010 - 2012 BUSINESS OBJECTIVES SALES DEVELOPMENT ASSUMPTIONS: lercanidipine franchise • Zanidip® (lercanidipine) sales will diminish progressively over the 2010- 2012 period to approx. € 100 million and remain relatively stable thereafter • Zanipress® (lercanidipine + enalapril): • Will grow in lin
Slide 19: 2010-2012 Business Objectives: Financial Projections Assumptions
2010 - 2012 BUSINESS OBJECTIVES FINANCIAL PROJECTIONS: Assumptions • Gross profit is expected to decrease to approx. 65-66% of sales over the period • SG&A expenses: • Sales force restructuring already completed completed. Now around 1 1,400 400 strong. • Promotional activity to increase in 2011-201
Slide 20: 2010-2012 Business Objectives: Financial Projections
2010 - 2012 BUSINESS OBJECTIVES FINANCIAL PROJECTIONS 2009 2010 2011 2012 Actual Targets Plan Plan (million Euro) Revenue 747.5 >700 730-740 780-800 Operating income (EBIT) 162.2 >140 145-150 155-160 Net Income 110.6 >95 100-102 110-112 • Based on existing business, no new acquisitions included. • T
Slide 21: Company declarations, disclaimers and profile
Company declarations, disclaimers and profile DECLARATION BY THE MANAGER RESPONSIBLE FOR PREPARING THE COMPANY’S FINANCIAL REPORTS The manager responsible for preparing the company’s financial reports Fritz Squindo declares, pursuant to paragraph 2 of Article 154-bis of the Consolidated Law on Finan