Kyorin Pharmaceutical Co.,ltd. · TSE:4569
Kyorin Pharmaceutical Co.,ltd — FY2023 Earnings Presentation
35 slides from Kyorin Pharmaceutical Co.,ltd's earnings presentation, May 13, 2024
Slide 1: Financial Results Ended March 2024
Financial Results Ended March 2024 May 13 , 2024 KYORIN Pharmaceutical Co., Ltd. Representative Director, President and CEO Yutaka Ogihara
Slide 2: Outline of Consolidated Financial Results and agenda
Outline of Consolidated Financial Results Trends of Mainstay Products, Generic Product Consolidated Financial Forecast Status of R&D Pipeline Initiatives toward Realization of Vision110 –Stage1– 2
Slide 3: Outline of Consolidated Financial Results
Outline of Consolidated Financial Results 3
Slide 4: Breakdown of Gain and Loss for FY2023
Breakdown of Gain and Loss for FY2023 （Units: JPY billions） Year-on-year Vs forecast (announced on May 11, 2023) FY2022 FY2023 Change Change (%) Change Net Sales 113.3 119.5 +6.2 +3.3 +5.5 New drugs, etc. 74.8 82.6 +7.8 +10.4 +3.5 (Japan) New drugs (Overseas) 0.3 0.4 +0.1 +25.1 0 Generic drugs 38.2
Slide 5: Highlights of Business Performance (1/3) YoY: Net Sales
Highlights of Business Performance (1/3) YoY: Net Sales （Units: JPY billions） 119.5 113.3 [ Net Sales +6.2] 36.6 New drugs, etc. (Japan) +7.8 38.2 Factor of increase 0.4 ⚫ New drugs grew (Beova, Lasvic, Flutiform etc.) ⚫ Increase in sales long-listed products (Kipres, Mucodyne) 0.3 New drugs (Overse
Slide 6: Highlights of Business Performance (2/3) YoY: Operating Profit
Highlights of Business Performance (2/3) YoY: Operating Profit （Units: JPY billions） 10.0 [ Operating Profit + 0.9] SG&A R&D expenses (excluding R&D) Gross profit +1.2 Net Sales + 6.2 － 2.9 +3.3 Cost of sales ratio + 1.3 %pt Factor of Increase in sales of new drugs (Beova, Lasvic etc) Gross profit D
Slide 7: Highlights of Business Performance (3/3): Vs Forecast
Highlights of Business Performance (3/3) : Vs Forecast （Units: JPY billions） Year-on-year Vs forecast (announced on May 11, 2023) FY2022 FY2023 Change Change (%) Change Net Sales 113.3 119.5 +6.2 +5.5 +3.3 New drugs, etc. (Japan) 74.8 82.6 +7.8 +10.4 +3.5 New drugs (Overseas) 0.3 0.4 +0.1 +25.1 0 Ge
Slide 8: Mainstay Product Sales Update
Mainstay Product Sales Update （Units: JPY billions） Year-on-year vs Forecast FY2022 FY2023 (announced on May 11, 2023) Change Change (%) Change Beova (KYORIN) (β3 adrenergic receptor agonist overactive bladder therapeutics ) 12.9 18.1 ＋5.2 ＋40.3 －0.8 Lasvic (New quinolone synthetic antibacterial age
Slide 9: Trends of Mainstay Products and Generic Drugs
Trends of Mainstay Products and Generic Drugs 9
Slide 10: Mainstay products: Beova (Therapeutic agent for OAB)
[Mainstay products] Beova (Therapeutic agent for OAB) OAB market b3 receptor antagonist Anticholinergic agents Beova (KYORIN) share Sales （Units: JPY billions） （Units: %) （Units: JPY billions） 100 96.3 97.7 25 20 Forecast 93.0 92.3 18.9 89.0 22.3 20.9 17.3 20 40.3 30.6 48.1 16.7 15 22.0 50 10 57.4 1
Slide 11: Mainstay products: Lasvic (New quinolone antibacterial agent)
[Mainstay products] Lasvic (New quinolone synthetic antibacterial agent) Oral antimicrobial market Market Lasvic share Sales 6.4 （Units: JPY billions） （Units: %) （Units: JPY billions） 100 6 6.0 96.2 Forecast 3.2 4.0 77.1 4 63.3 62.3 60.5 6.4 50 3.0 2.9 4.9 1.9 2 0.9 2.5 1.8 0.9 0 0 0 20/3 21/3 22/3
Slide 12: Mainstay products: Lyfnua (Cough treatment)
[Mainstay products] Lyfnua (Cough treatment) The number of estimated patients Sales （Units: JPY billions） 1.5 1.0 Chronic chough patients (Forecast) 1.3 2,500K 1.5 0.5 0.8 0.2 0 23/3 24/3 25/3 (Forecast) RCC/UCC patients 400～500K Result in FY2023 ⚫ Number of customers : Target was not achieved ⚫ Per
Slide 13: Mainstay products: Desalex (Antiallergic Agent)
[Mainstay products] Desalex (Antiallergic Agent) Antihistamine market New drugs Desalex share Sales Long-listed and generic drugs （Units: %) （Units: JPY billions） （Units: JPY billions） 160 156.2 15 100 Forecast 8.9 137.0 125.6 122.0 116.5 85.2 9.0 10 98.6 83.7 8.1 67.8 9.6 80 6.6 50 74.5 8.5 8.9 4.9
Slide 14: Mainstay products: Flutiform (Anti-asthmatic)
[Mainstay products] Flutiform（Anti-asthmatic） ICS/LABA market Market Flutiform share Sales （Units: JPY billions） （Units: JPY billions） （Units: %) 140 20 14.0 Forecast 11.4 16.9 15.9 16.0 15.5 13.2 70 10 7.0 123.2 13.3 12.6 12.9 12.5 12.0 101.3 90.4 85.6 86.0 0 0 0 20/3 21/3 22/3 23/3 24/3 21/3 22/3
Slide 15: Status of Generic Drugs
Status of Generic Drugs Sales Sales in AG (three products) among with the sales at left 40 Forecast 20 Forecast 36.6 14.8 20 10 38.2 36.6 38.2 18.7 32.2 34.8 16.6 17.4 16.6 15.4 0 0 21/3 22/3 23/3 24/3 25/3 21/3 22/3 23/3 24/3 25/3 (Forecast) (Forecast)） Copyright © 2024 IQVIA. Calculated based on J
Slide 16: Consolidated Financial Forecast
Consolidated Financial Forecast 16
Slide 17: Consolidated Financial Forecast
Consolidated Financial Forecast Year-on-year FY2023 FY2024 Change Change (%) Net Sales 119.5 123.4 + 3.9 + 3.2 New drugs, etc. (Japan) 82.6 84.7 + 2.1 + 2.6 New drugs (Overseas) 0.4 0.4 0 + 3.6 Generic drugs 36.6 38.2 + 1.6 + 4.5 Cost of sales 68.1 - - - SG&A (R&D) 45.4 - - - (8.0) (8.5) (+ 0.5) (+
Slide 18: Forecast of Mainstay Products Sales
Forecast of Mainstay Products Sales （Units: JPY billions） Year-on-year FY2022 FY2023 Change Change (%) Beova (KYORIN) (β3 adrenergic receptor agonist overactive bladder therapeutics ) 18.1 22.0 ＋3.9 ＋21.6 Lasvic (New quinolone synthetic antibacterial agent) 4.9 6.4 ＋1.4 ＋29.8 Lyfnua (Selective P2X3
Slide 19: Shareholders Returns
Shareholders Returns ● Increase capital efficiency through investment for growth and shareholder returns, Capital with a constant awareness of the cost of capital and return on capital, while maintaining a sound financial base Policy ● Maintain stable dividends taking DOE (Dividend on Equity ratio)
Slide 20: Status of R&D Pipeline
Kyorin @) Ij! Status of R&D Pipeline 20
Slide 21: Status of R&D Pipeline
Status of R&D Pipeline Clinical trials are making steady progress Development code Ph1 Ph2 Ph3 Application Approval/Launch Respiratory MRCT*1 KRP-R120 (Sept. 2022) Infection KRP-A218 (Apr. 2021) Completed AKP-009*2 by ASKA Urology KRP-114VP (Aug. 2022) *1 MRCT: Multi-Regional Clinical Trials *2 Ph1
Slide 22: Initiatives toward Realization of Vision110 –Stage1–
Initiatives toward Realization of Vision110 –Stage1– 22
Slide 23: Initiatives toward Realization of Vision110 –Stage1–
Initiatives toward Realization of Vision110 –Stage1– Stage 1 Strengthening drug discovery capability to create high- value new drugs that meet medical needs Expansion of development pipeline through in-licensing Maximization of the ratio of new drugs Promoting healthcare-related businesses that have
Slide 24: Try for drug innovation through new drug discovery strategies
Initiatives toward realization of Vision110 –Stage1– Strengthening drug discovery capability to create high-value new drugs that meet medical needs Try for drug innovation through new drug discovery strategies Development of new Strengthen research themes basic technology Small molecule drugs New ta
Slide 25: Expansion of development pipeline through in-licensing
Initiatives toward realization of Vision110 –Stage1– Expansion of development pipeline through in-licensing Strengthen the foundation of new drug business by enhancement of in-licensing and alliance function and expansion of development pipeline Expand the scope of modality and therapeutic area Incr
Slide 26: Maximization of the ratio of new drugs
Initiatives toward realization of Vision110 –Stage1– Maximization of the ratio of new drugs Ratio of new drugs Sales (unit: billion yen) 56.0 Target in FY2025: over 50％ 52.0 45.6 Forecast 43.7 25.0 Beova® 51. 0% 36.1 22.0 Forecast 18.1 50 % 12.9 Lasvic® 47. 4% 4.9 6.4 5.0 2.5 0.8 1.5 4.5 Lyfnua® 0.2
Slide 27: Beova®
Initiatives toward realization of Vision110 –Stage1– Maximization of the ratio of new drugs Beova® ⚫ No.1* in OAB market ⚫ No.1 of OAB patients’ share (FY2023: 34%*, as Beova) Status FY2024 ● New patients acquisition rate : 50% ●D T C Initiatives → Aim to achieve a 45% the patients' share Aimed stat
Slide 28: Lasvic®
Initiatives toward realization of Vision110 –Stage1– Maximization of the ratio of new drugs Lasvic® ⚫ Classified Covid-19 to the Category V caused market expansion ⚫ Listed in guidelines as a recommended drug Status ⚫ Growth rate of No.1 (25%*) in expansion of oral NQ market FY2024 ⚫ First choice fo
Slide 29: Lyfnua®
Initiatives toward realization of Vision110 –Stage1– Maximization of the ratio of new drugs Lyfnua® ⚫ Sales target was ⚫ FY2023(second half) GP: 6,300, HP: 1,300 not achieved ⚫ Period of taking drug was shorter than expected Status FY2024 ⚫ Enhancement of better understanding for product Initiatives
Slide 30: Takaoka New Plant Operation Started
Initiatives toward realization of Vision110 –Stage1– Promoting healthcare-related businesses that have synergies with the new drugs business Takaoka New Plant ■ of the Takaoka Plant Outline Operation Started Location IC Park 8, Takaoka-City, Toyama Site Area 42,457 m2 Strengthen supply capacity with
Slide 31: Initiatives toward realization of Vision110 –Stage1–
Initiatives toward realization of Vision110 –Stage1– Stage 1 Result in FY2023 Initiatives in FY2024 Strengthening drug discovery Promote in-house research activities and Focus on research area utilize external technology capability to create high-value Steady progress in clinical trials Enrich drug
Slide 32: Performance target
Initiatives toward realization of Vision110 –Stage1– Performance target Performance target FY2024(Forecast) Performance targets (consolidated basis) (FY2025) FY2023(Actual) Growth potential “Net sales” CAGR At least 2% 5.5% 4% Operating profit before Profitability deduction of R&D expenses At least
Slide 33: FY2024 Management policy
FY2024 Management policy Accomplish reform of drug discovery Expand of development pipeline Maximize the expansion of sales growth in new drugs Improve cost competitiveness 33
Slide 34: Disclaimer
Disclaimer This material contains performance forecasts, goals and plans, and other forward-looking statements related to the Group. These statements are based on the judgment of the Group’s assumptions and outlooks based on the information and forecasts available at the time of preparation of this
Slide 35: Kyorin
Kyorin ©)