Orion Oyj Class A · OMXHEX:ORNAV
Orion Oyj Class A — Investor Day (November 2006)
29 slides from Orion Oyj Class A's investor day presentation, Nov 22, 2006
Slide 1: Orion Capital Markets Presentations
Orion Capital Markets Presentations On-demand video webcast 22 November 2006 Orion Corporation Communications 22.11.2006 1 Opening remarks Jukka Viinanen President and CEO Orion Corporation Orion Corporation Communications 22.11.2006 2 1
Slide 2: Presentations
Presentations Topic Presenter Opening remarks Orion after the demerger Jukka Viinanen Outlook based on Q3 results President and CEO Highlights of Orion’ s strategy Orion R&D review Reijo Salonen Senior Vice President, R&D Stalevo® in the treatment of Timo Lappalainen Parkinson’s Disease Senior Vice
Slide 3: History
History • ‘Osakeyhtiö Orion’ was founded in 1917 to ”manufacture, sell and distribute chemical substances for pharmaceutical and hygienic purposes”. • Over its long history, Orion has been engaged in numerous lines of business other than healthcare. • In recent years Orion has intentionally proceede
Slide 4: Orion key figures 1-9/2006 vs 1-9/2005
Orion key figures 1-9/2006 vs 1-9/2005 1-9/2006 1-9/2005 Change 2005 Proforma Proforma % Proforma Net sales, EUR million 478.8 438.4 +9.2% 585.6 Operating profit, EUR million 160.1 129.3 +23.8% 155.2 % of net sales 33.4% 29.5% 26.5% Profit before taxes, EUR million 160.2 128.5 +24.7% 154.3 Earnings
Slide 5: Net sales and EBIT 1-9/2006
Net sales and EBIT 1-9/2006 by business segments Net sales EBIT Proforma Proforma EUR m Change EUR m Change Pharmaceuticals 449.1 +9.6% 150.4 +18.5% Diagnostics 31.1 +2.6% 6.0 +15.3% Group items -1.4 -10.0% 3.7 -231.5% Group total 478.8 +9.2% 160.1 +23.8% Orion Corporation Communications 22.11.2006
Slide 6: Balance Sheet
Balance Sheet EUR m Balance Sheet total 585.5 605.1 558.6 600 500 65.1% 65.6% 74.6% Equity ratio 380.9 396.8 400 416.9 Equity 300 200 96.6 63.9 100 144.4 62.8 Non-current liabilities 107.9 78.9 Current liabilities 0 9/2005 31.12.2005 9/2006 Orion Corporation Communications 22.11.2006 11 10 best-sell
Slide 7: Outlook for full-year 2006 (Proforma)
Net sales from the proprietary franchise, by product 227.2 EUR million 206.6 194.1 200 74.7 176.8 164.6 Stalevo 41.7 80.2 11.0 150 58.1 Comtess/Comtan Animal sedatives 69.3 73.9 70.6 100 HRT products 57.0 54.8 Easyhaler 22.2 25.0 26.0 20.2 Simdax 50 20.2 26.9 16.2 18.8 12.4 10.9 12.7 Fareston 13.1 1
Slide 8: Outlook for full-year 2006 (2)
Outlook for full-year 2006 (Proforma) 2 (2) Orion Group • Due to one-off earnings items, the operating profit resulting from the Group items is anticipated to be better than in 2005. • The Group’ s R&D expenditure will be about EUR 80 million. • Capital expenditure is estimated to be about EUR 25 mi
Slide 9: Orion's strategy and financial objectives
Orion’ s strategy - profitable growth and risk management • Orion is a European, R&D-based, business-driven pharmaceuticals and diagnostics company with a special emphasis on developing innovative treatments and diagnostic tests for global markets. • Orion has five distinct businesses that jointly h
Slide 10: Orion's growth strategy: Building European presence
Orion’ s growth strategy: Building European presence Discovery Supply Sales - increased Development networking & partnering Chain presence in Europe MID-LONG TERM SHORT TERM •Long-term future is seen in the •Strengthening of operations in current territories; Proprietary Products business lean and a
Slide 11: Own sales force and strategic partners
Own sales force of ca 500 persons 110 120 140 130 Sales to these countries are managed via alliances Orion Corporation Communications 22.11.2006 21 Strategic partners • Strategic Partners are important to Orion • Collaboration with strategic partners is versatile and reciprocal. Orion has numerous j
Slide 12: Orion R&D review
Orion Corporation Communications 22.11.2006 23 Orion R&D review Reijo Salonen Senior Vice President Research and Development Orion Corporation Communications 22.11.2006 24 12
Slide 13: Previous career of Dr. Salonen
Previous career of Dr. Salonen • MD, PhD in Neuroimmunology, 1983 • Vice President and Worldwide Therapeutic Area Head Neurosciences, Worldwide Development, Pfizer (NYC and Groton, CT), 2005-2006 • Vice President, Neurology, Psychiatry and Ophthalmology, Worldwide Medical, Pfizer (NYC) 2004-2005 • V
Slide 14: Highlights of Orion's strategy
Highlights of Orion’ s strategy • Long-term future is seen in the Proprietary Products business – Focus on discovery, preclinical and clinical phases I-II – Global phase III development generally with partners • Networking and partnering to enhance pipeline • Life cycle management of own innovative
Slide 15: Highlights of R&D projects
Highlights of R&D projects • STRIDE-PD with Stalevo in 740 patients with Parkinson’ s Disease – Progressing in Phase 3 as planned – Results will be reported in 2008 • Dexmedetomidine (Precedex) is studied as a long-term infusion in the sedation of patients in intensive care – Encouraging results fro
Slide 16: Situation of the Simdax project
Situation of the Simdax (i.v. levosimendan) project • Orion and Abbott Laboratories are continuing discussions concerning a possible additional Phase 3 clinical study with the heart failure drug levosimendan and its financing. • Orion will inform about the solutions as soon as reached. Orion Corpora
Slide 17: Stalevo in the treatment of Parkinson's Disease
Stalevo in the treatment of Parkinson’ s Disease Timo Lappalainen Senior Vice President Proprietary Products, Animal Health Orion Corporation Communications 22.11.2006 33 Facts about Parkinson’ s Disease (PD) • One of the most common progressive disabling neurological diseases • Affects more than 6
Slide 18: The PD market 2005-2015
The PD market 2005-2015 Europe (Big 5) 2005 2015 Prevalent 1,350,800 1,587,500 US 2005 2015 population Prevalent 978,500 1,151,800 Market 777 1374 population $ million Market 715 1,300 Japan 2005 2015 $ million Prevalent 629,200 837,900 population Market 430 763 $ million Source: Decision Resources,
Slide 19: Development of PD treatment
Development of PD treatment Levodopa has continued to be the mainstay of therapy for PD since its discovery in 1960s. 1960s 1970s 1980s 1990s 2000s Levodopa Launch of Launch of levodopa + introduced to levodopa carbidopa Launch of clinical practice Launch of first COMT-inhibitor (1970) Comtess (1998
Slide 20: Comtess/Comtan and Stalevo
Comtess®/Comtan® • Comtess® / Comtan® (entacapone) is a powerful supplementary medicine for later stage PD patients treated with complicated standard or controlled release levodopa treatment regimens • Comtess/Comtan was introduced to the global pharmaceutical markets in 1998– 1999 and became quickl
Slide 21: Traditional levodopa and pulsatile delivery
Traditional levodopa has superior efficacy but pulsatile delivery causes concerns • Levodopa is the golden standard therapy in PD • However, pulsatile stimulation with traditional levodopa leads to development of motor complications • These effects are reduced or avoided when dopaminergic therapies
Slide 22: Stalevo and PD treatment vision
Stalevo® - enhanced levodopa that addresses pulsatility Reference: Olanow C.W., Obeso J.A. and Stocchi F. Nature Clinical Practice Neurology 2006;2:382-392. Orion Corporation Communications 22.11.2006 43 Parkinson’ s Disease treatment vision Comtess®® Stalevo®® The The enhanced enhanced levodopa lev
Slide 23: STRIDE-PD and FIRST-STEP studies
STRIDE-PD and FIRST-STEP studies STRIDE-PD = STalevo Reduction FIRST-STEP = Favorability of In Dyskinesia Evaluation Immediate Release carbidopa/levodopa vs. Stalevo®; Short Term Comparison • Randomised double-blind study in Early Parkinson’s Disease • 740 patients; 77 centres in 14 • Randomised, do
Slide 24: Stalevo and Comtess/Comtan in-market sales and share
Stalevo and Comtess/Comtan worldwide in-market sales EUR million/trade 400 350 349.5 319.5 300 250 242.7 200 177.8 150 138.1 100 109.4 50 0 2001 2002 2003 2004 2005 MAT 06/06 Source: IMS Orion Corporation Communications 22.11.2006 47 Stalevo and Comtess/Comtan market share is substantial Share of PD
Slide 25: Levodopa share of PD market and entacapone share
Levodopa represents almost 70% of PD market in volume US and EU Big 5, 2005 Rasagiline 0% Stalevo Dopamine 5% Agonists 27% Tolcapone 0% Comtess Levodopa IR 4% 51% Levodopa CR 13% Source: IMS Orion Corporation Communications 22.11.2006 49 Stalevo and Comtess/Comtan share of levodopa tablets Q2/2006 v
Slide 26: Market growth of Orion's PD products expected to continue
Market growth of Orion’ s PD products is expected to continue 2005 2015 Total USD 1,921.7 billion* Total USD 3,437.3 billion* Mixed dopamin. Others MAO-B Others 5% agents 3% inhibitors 7% 4% Dopamine MAO-B COMT-inh. agonists inhibitors 13% 31% 9% Dopamine agonists COMT inh. 48% 15% Dopamine USD 516
Slide 27: Stalevo has outperformed competition in PD market
Stalevo has outperformed competition in PD market Sales in Germany since launch EUR million 3 500 3 000 Brand A Comtess 2 500 Brand B 2 000 Brand C 1 500 Stalevo Brand D 1 000 Relaunch Brand D 500 Brand E 0 Brand F 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 Months Source: DPM, July 2006 Orion
Slide 28: Closing remarks and 2007 reporting schedule
Closing remarks Jukka Viinanen President and CEO Orion Corporation Communications 22.11.2006 55 Orion’ s reporting schedule in 2007 Due to the demerger on 1 July 2006, the first accounting period of Orion Corporation is 1 July –31 December 2006 Proforma Financial Review of 2006 and Financial Stateme
Slide 29: Orion Corporation
Orion Corporation Communications 22.11.2006 57 29