Recordati S.p.a. · MIL:REC
Recordati — Berenberg Bank Conference 2010
20 slides from Recordati's conference presentation, Dec 1, 2010
Slide 1: Berenberg Bank Conference, London, December 1, 2010
Berenberg Bank Conference, London, December 1, 2010 A European specialty pharmaceutical group
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 5.3% Spain 4.2% Germany 8.6% UK 1.4% Other W. European countries 3.5% Russia Turkey Russia, Turkey, other CEE 9 9.7% 7% France 19.8% Other international sales 19.2% Italy 28.3% Data: First nine months 2010 Pharmaceutical revenue € 529.6 m 2
Slide 4: Composition of Revenue by Business
COMPOSITION OF REVENUE BY BUSINESS Zanipress 4.2% Other corporate products 7.5% Zanidip 21.5% Orphan drugs 8 8.2% 2% Pharmaceutical chemicals 3.5% Local product portfolios 50.1% Other revenue 5.0% Entact®/Elopram® 6% (escitalopram/citalopram) - Italy Peptazol® (pantoprazole) – Italy 3% Methadone – F
Slide 5: Corporate Products: 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: Corporate Products: 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: Corporate Products: 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: New Corporate Products: 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: New Corporate Products: Livazo (pitavastatin)
NEW CORPORATE PRODUCTS LIVAZO® (pitavastatin) ( it t ti ) positioning • Highly effective HMG-CoA reductase inhibitor • Similar LDL-C reduction of market leading indicated for the treatment of best-in-class statins hypercholesterolaemia • Broad-spectrum effects on secondary lipid • Semi-exclusive S i
Slide 10: R&D Pipeline
R&D Pipeline NAME ORIGINATOR INDICATION DEVELOPMENT STATUS Urorec®/Silodyx™ Kissei Benign prostatic hyperplasia (BPH) Approved – initial launches Orphan Europe NAGS deficiencyy Approved pp in EU and in the U.S. Carbaglu® (R (Recordati) d ti) lercanidipine 8/16 mg Pharmathen Essential hypertension Ap
Slide 11: Development of drugs for rare diseases
Development of drugs for rare diseases • Carbaglu® (carglumic acid), a drug developed by Orphan Europe for the treatment of NAGS deficiency, y, was approved pp in the EU in 2003 and byy the FDA in 2010. Carbaglu g ® is also in pre-registration phase in Europe for additional indications in organic ac
Slide 12: New developments for Lower Urinary Tract Symptoms (LUTS) 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 13: First Nine Months 2010 Highlights
FIRST NINE MONTHS 2010 HIGHLIGHTS • Revenue € 548.6 million, down 1.4%, international sales down 0.4% • Operating income (EBIT) € 123.9 million, up 1.6% • Net Income € 87.0 million, up 2.1% • Silodosin (Urorec®/Silodyx™) approved in Europe and launched in Germany, Spain and Ireland • Carbaglu® (carg
Slide 14: Composition of Revenue
COMPOSITION OF REVENUE Jan-Sep Jan-Sep Change % (million Euro) 2010 2009 Italy 150.0 156.5 (4.2) France 105.0 114.4 (8.3) Germany 45.7 51.7 (11.5) Portugal 28.0 29.5 (5.1) Spain 22.2 23.0 (3.8) United Kingdom 73 7.3 10 9 10.9 (33 0) (33.0) Other Western European countries 18.7 14.7 27.9 Russia, Turk
Slide 15: Main Product Sales
MAIN PRODUCT SALES Jan-Sep Jan-Sep Change % (million Euro) 2010 2009 Zanidip® (lercanidipine) 117.8 160.9 (26.8) Zanipress® (lercanidipine+enalapril) 22.8 14.4 58.3 Other corporate products 41.2 26.5 55.6 Orphan drugs 45.0 35.9 25.3 14
Slide 16: First Nine Months 2010 Results
FIRST NINE MONTHS 2010 RESULTS Jan-Sep Jan-Sep (million Euro) Change % 2010 2009 Revenue 548.6 556.2 (1.4) Gross Profit 369.1 379.2 (2.6) as % of revenue 67 3 67.3 68 2 68.2 SG&A Expenses 195.1 200.8 (2.9) as % of revenue 35.6 36.1 R&D Expenses 46.0 49.5 (7.1) as % of revenue 8.4 8.9 Other Income (E
Slide 17: Third Quarter 2010 Results
THIRD QUARTER 2010 RESULTS (million Euro) 3Q 2010 3Q 2009 Change % Revenue 172.4 176.9 (2.6) Gross Profit 114.3 121.1 (5.7) as % of revenue 66.3 68.5 SG&A Expenses 60.0 63.1 (5.0) as % of revenue 34.8 35.6 R&D & Expenses pe ses 13.2 15.8 58 ((17.0) 0) as % of revenue 7.6 9.0 Other Income (Expense),
Slide 18: Net Financial Position and Shareholders' Equity
NET FINANCIAL POSITION AND SHAREHOLDER’S EQUITY (million Euro) 30 Sep 2010 31 Dec 2009 Change Cash and short-term financial 108.4 93.8 14.6 investments Bank overdrafts and short-term (5.6) (28.9) 23.3 loans Loans – due within one year (1 3) (1.3) (2.4) 1.1 Loans – due after one year (81.5) (82.2) 0.
Slide 19: 2010 Targets
FINANCIAL PROJECTIONS 2010 TARGETS 2009 2010 Actual Targets (million Euro) Revenue 747.5 ~ 725 Operating income (EBIT) 162.2 ~ 155 Net Income 110.6 ~ 105 Based on existing business, no new acquisitions included. 18
Slide 20: 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