Kyowa Kirin Co., Ltd. · TSE:4151

Kyowa Kirin — Q3 2020 Earnings Presentation

26 slides from Kyowa Kirin's earnings presentation, 2020

  1. Slide 1: Results Presentation Fiscal 2020 Third Quarter

    Results Presentation Fiscal 2020 Third Quarter

  2. Slide 2: Agenda

    Agenda Financial Review Motohiko Kawaguchi Executive Officer, Director of Finance Dept R&D Review Yoshifumi Torii, Ph.D Executive Officer, Vice President, Head of R&D Div Business Topics Takeyoshi Yamashita, Ph.D Executive Officer, Director of Corporate Strategy & Planning Dept Q&A © Kyowa Kirin Co.

  3. Slide 3: Forward-looking statements notice

    This document contains certain forward‐looking statements relating to such items as the company’s (including its domestic and overseas subsidiaries) forecasts, targets and plans. These forward‐looking statements are based upon information available to the company at the present time and upon reasona

  4. Slide 4: Financial Review

    Financial Review © Kyowa Kirin Co., Ltd. 4

  5. Slide 5: Summary of Q3 Results

    Summary of Q3 Results ( Billion Yen / Rounded ) 2019Q3 2020Q3 2020 Changes Progress Results Results New Plan Revenue 225.5 234.0 +8.5 (+4%) 313.0 75% [Overseas Ratio] [39%] [47%] [47%] Gross Profit 168.4 175.4 +7.0 (+4%) 236.0 74% [Gross Profit margin] [75%] [75%] [75%] Core OP 45.8 50.7 +4.9 (+11%)

  6. Slide 6: YoY Analysis -Revenue-

    YoY Analysis ‐Revenue‐  Japan ‐12.5 • In addition to newly‐launched Crysvita, Romiplate (Additional indication), Rituximab BS and G‐Lasta made strong growth. +8.5 billion yen However, they could not cover the impact such as the shrink of Nesp (Shift to Nesp‐AG) and Patanol/Allelock (Lower pollen (i

  7. Slide 7: Revenue of Major Items (Japan)

    Revenue of Major Items (Japan) ( Billion yen / Rounded ) 2019Q3 2020Q3 Changes Reason 2020 Progress Item Results Results New Plan Nesp + Nesp‐AG* 37.6 21.9 ‐15.6 (‐42%) 28.9 76% Nesp‐AG launched in Aug 2019 Nesp 32.0 3.3 ‐28.7 (‐90%) and Biosimilars’ penetration 4.6 72% Nesp‐AG 5.6 18.6 +13.0 (+232%

  8. Slide 8: Revenue of Major Items (Overseas)

    Revenue of Major Items (Overseas) ( Billion yen / Rounded ) 2019Q3 2020Q3 Changes Reason 2020 Progress Item Results Results New Plan Crysvita*1 21.6 38.5 +16.9 (+79%) Steady market penetration 51.1 75% North America 16.3 30.3 +14.0 (+86%) EMEA 5.3 8.3 +3.0 (+56%) Launched in Jun 2020 and Poteligeo*2

  9. Slide 9: YoY Analysis -Core OP-

    YoY Analysis ‐Core OP‐ +4.9 billion yen  Gross Profit +7.0 (incl. forex effect ‐1.7) (incl. forex effect ‐0.9) • Increased in conjunction with the rise in revenue. (¥Bn)  SG&A ‐4.3 (incl. forex effect +0.7) • Increased selling and launch readiness expenses in the EU/US, including Crysvita’s profit

  10. Slide 10: YoY Analysis -Profit-

    YoY Analysis ‐Profit‐ Profit (Jan‐Sep) ‐18.8 billion yen (¥Bn) • KHB shares sold in Apr 2019 (Gain on sale of KHB shares 29.7) • Impairment losses (6.1→2.7) +3.4 • Business restructuring expenses (5.1→2.1) +3.0 • Foreign exchange gain/loss +1.3 • Provision for compensation loss ‐3.4 Core Operating P

  11. Slide 11: R&D Review

    R&D Review © Kyowa Kirin Co., Ltd. 11

  12. Slide 12: Key Development Updates in 20Q3

    Key Development Updates in 20Q3 • Approval of KRN23 for the treatment of FGF23‐related hypophosphatemic rickets and osteomalacia in Korea (September) • Approval of KRN23 for the treatment of adult XLH in Europe (September) • Discontinuation of the development of KW‐0761 for the treatment of adult T‐

  13. Slide 13: Key Development Updates after September

    Key Development Updates after September • Initiation of the pivotal phase 2 study of ME‐401 for the treatment of indolent B‐cell non‐Hodgkin’s lymphoma in Japan (October) • Announcement of the positive phase 2b results for KW‐6356 in patients with Parkinson’s disease in Japan (October) • Presentatio

  14. Slide 14: Business Topics

    Business Topics © Kyowa Kirin Co., Ltd. 14

  15. Slide 15: Key Business Topics in 20Q3

    Key Business Topics in 20Q3 • Launch of Duvroq for Patients with Renal Anemia due to Chronic Kidney Disease (August) • Centus Biotherapeutics* received European Marketing Authorization for Equidancent, biosimilar Avastin (September) • Provision for the payment responding to the compensation request

  16. Slide 16: Launch of Duvroq for Patients with Renal Anemia due to CKD

    Launch of Duvroq for Patients with Renal Anemia due to Chronic Kidney Disease (August) • Launched Duvroq, an oral HIF‐PH* inhibitor for the treatment of renal anemia due to chronic kidney disease (CKD), as the second group in the class for patients on dialysis, and as the first group in the class th

  17. Slide 17: Product Portfolio in Nephrology Area

    Product Portfolio in Nephrology Area *Under development Diabetic Kidney Disease Hyperphosphatemia RTA 402 * KHK7791 * Hypertension・ Diabetes CKD‐MBD Coniel・Coversyl・Onglyza Regpara・Orkedia・Rocaltrol・Phosblock Renal Anemia︓Espo・Nesp・Darbepoetin Alfa 「KKF」・Duvroq eGFR chronic kidney disease patients o

  18. Slide 18: Appendix

    Appendix © Kyowa Kirin Co., Ltd. 18

  19. Slide 19: FOREX Information

    FOREX Information Average FOREX Rate (Yen) 2019Q3 2020Q3 2020 Currency Changes Results Results New Plan USD/JPY 109 108 ‐1 108 GBP/JPY 140 137 ‐3 135 2020Q3 FOREX Impact (Billion yen) Currency Revenue Core OP USD/JPY ‐0.4 ‐0.2 GBP/JPY ‐1.0 ‐0.3 FY2020 Currency Fluctuation Sensitivity (New Plan) (Bil

  20. Slide 20: Key progress in development (2020 Q3)

    Key progress in development (2020 Q3) Note: Listed events were completed between January 1st, 2020 and September 30th, 2020. Generic name Month Code Indication Country/region Event Istradefylline Jan. KW‐6002 Parkinson’s disease EU Accepted MAA Pegfilgrastim Feb. KRN125 Chemotherapy induced febrile

  21. Slide 21: Submission plan of major pipeline

    Submission plan of major pipeline As of September 30th, 2020 Generic name Code Indication Country/region 2020 H1 2020 H2 2021 Brodalumab KHK4827 Psoriasis CN + Brodalumab KHK4827 Psoriasis AS +5 Brodalumab KHK4827 Axial spondyloarthritis JP + Brodalumab Psoriatic arthritis KHK4827 TW Filed + Burosum

  22. Slide 22: Development plan of major pipeline

    Development plan of major pipeline As of September 30th, 2020 Generic name Code Indication Country/region 2020 2021 2022~ Bardoxolone methyl Diabetic Kidney disease RTA 402 JP Phase 3 Bleselumab1 Recurrence of FSGS in ASKP1240 de novo kidney transplant US Phase 2 Phase 3 Entinostat Breast cancer KHK

  23. Slide 23: Estimated annual incidence/prevalence

    Estimated annual incidence/prevalence Disease Country Estimated # of Incidence (i) Source /Region or Prevalence (p) ATL Japan i: 1,150 per year i: Survey and countermeasures to HTLV‐1 infection and related diseases in Japan. 2009 summary research report (Yamaguchi, 2010); p: p: 2,000 Ministry of Hea

  24. Slide 24: Crysvita - Collaboration with Ultragenyx

    Crysvita ‐ Collaboration with Ultragenyx ‐ Kyowa Kirin Group Ultragenyx  Books sales  For first 5 years, splits profits in half U.S.A  For first 5 years, splits profits in half  After 5 years, receives mid to high 20% range sales /Canada  After 5 years, pays mid to high 20% range sales royalty

  25. Slide 25: List of acronyms

    List of acronyms AA Aplastic Anemia AD Atopic Dermatitis AG Authorized Generic ATL Adult T‐Cell Leukemia/Lymphoma BS Biosimilar CKD Chronic Kidney Disease CKD‐MBD Chronic Kidney Disease‐Mineral and Bone Disorder DKD Diabetic Kidney Disease ENS Epidermal Nevus Syndrome FL Follicular Lymphoma FSGS Foc

  26. Slide 26: Kyowa Kirin Co., Ltd. IR contact

    Kyowa Kirin Co., Ltd. Corporate Communications Dept., IR Group +81-3-5205-7206 / ir@kyowakirin.com

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