Teva Pharmaceutical Industries Limited · TASE:TEVA
Teva Pharmaceutical Industries — CIBC World Markets 18th Annual Healthcare Conference 2007
34 slides from Teva Pharmaceutical Industries's conference presentation, Nov 7, 2007
Slide 1: CIBC World Markets 18th Annual Healthcare Conference
CIBC World Markets 18th Annual Healthcare Conference Dan Suesskind George S. Barrett Teva Pharmaceutical Industries Ltd. November 7, 2007
Slide 2: Forward-Looking Statements
Forward-Looking Statements TODAY’S PRESENTATION CONTAINS FORWARD LOOKING STATEMENTS WHICH EXPRESS THE CURRENT BELIEFS AND EXPECTATIONS OF MANAGEMENT. SUCH STATEMENTS ARE BASED ON CURRENT EXPECTATIONS AND INVOLVE A NUMBER OF KNOWN AND UNKNOWN RISKS AND UNCERTAINTIES THAT COULD CAUSE TEVA’S FUTURE RES
Slide 3: Overview
Overview • Vertically-integrated global pharmaceutical company founded in 1901 • Three main business segments – Finished Dosage Generic Pharmaceuticals – Active Pharmaceutical Ingredients (API) – Specialty Branded Pharmaceuticals • Presence in 60 countries; approximately 26,000 employees • Rank amon
Slide 4: Financial Results
Financial Results 1-9/07 1-9/06 % Change Sales ($ Millions) 6,832 6,131 11% Net Income ($ Millions) 1,382 1,434 (4%) Earnings per Share (diluted $) 1.69 1.77 (5%) Cash Flow from Operations 1,268 1,294 P/E Ratio 2007 (F.C. Consensus $2.32) 19.3 Market Capitalization (as of Nov. 6, 2007: $44.80) $35 B
Slide 5: Sales By Region
Sales By Region 1-9/07: $6,832 Million 1-9/06: $6,131 Million North America, 58% North America, 61% TSP** 8% ROW,2% ROW,2% TSP**, 3% Latin America, Latin America, Europe, 26% Israel, 6% Europe, 24% 6% Israel, 4% CEE 4% 4% CEE 3% * Western Europe and Hungary ** TSP as % of North America 5
Slide 6: Teva's Core Strengths in Generics
Teva’s Core Strengths in Generics R&D Portfolio Global Supply Global Reach Chain Operations in over Over 40 Production 50 countries facilities Managing the Environment Technology API/ Development Vertical Integration Oral and Semi solids Approximately Injectables 250 Compounds Modified Release Inhal
Slide 7: Q3/2007 – North America Pharmaceutical Sales
Q3/2007 – North America Pharmaceutical Sales ($ M illions) 1,365 1,315 719 708 452 Q3/03 Q3/04 Q3/05 Q3/06 Q3/07 7
Slide 8: Absolute growth of generics takes off in the last four years; brands decline
Absolute growth of generics takes off in the last four years; brands decline 8
Slide 9: Generic TRx continue to gain traction
Generic TRx continue to gain traction 12% 9
Slide 10: Top U.S. Pharmaceutical Companies
Top U.S. Pharmaceutical Companies (In thousands) Generic companies only All pharmaceutical companies Total Rx’s Total Rx’s 1 Teva USA 431,054 1 Teva USA 443,824 2 Mylan 276,753 2 Mylan 278,627 3 Watson 223,671 3 Pfizer 269,682 4 Sandoz 192,609 4 Novartis 267,918 5 Barr 137,581 5 Watson 223,674 6 Mal
Slide 11: Generic Industry Consolidation
Generic Industry Consolidation Top 4 have 55% m arket share com bined IMS TRx MAT Jun-97 IMS TRx MAT Jun-07 (Top 4 = 35%) (Top 4 = 55%) All Others Teva 65% All Others 21% 30% Mylan Mylan Actavis 13% 12% 4% Mallinckrodt Watson Teva 5% Barr Zenith Apothecon Sandoz 11% 8% 6% Goldline (Bristol) 10% (Iva
Slide 12: Competitive Generic TRX share
Competitive Generic TRX share* Simvastatin # of ANDA’s: 12 Teva 51.9% Pravastatin 10/20/40 # of ANDA’s: 10 Dr. Reddy – AG 23.9% Teva 46.9% Apotex 28.1% Aurobindo 7.1% Watson – AG 9.4% Ranbaxy 6.5% Dr Reddy 9.4% Lupin 4.1% Sandoz 4.2% Sandoz 2.6% Par 0.7% Zydus 2.2% Other 1.3% Other 1.7% Sertraline #
Slide 13: U.S. Generic Industry's Largest Pipeline
U.S. Generic Industry’s Largest Pipeline 151 ANDAs – over $88 billion in total brand sales 82 Paragraph IV Filings 43 First-to-File – over $38 billion in total brand sales As of October 26, 2007 13
Slide 14: Q3/2007 – Europe Pharmaceutical Sales
Q3/2007 – Europe* Pharmaceutical Sales ($ M illions) Up 22 % 567 464 342 275 180 Q3/03 Q3/04 Q3/05 Q3/06 Q3/07 * Western Europe and Hungary 14
Slide 15: Western Europe is emerging as a pharmacy-focused region
Western Europe is emerging as a pharmacy-focused region, facilitating higher penetration Pharmacist / UK Payer Substitution influence Netherlands Gx model France Germany Italy Spain Market discontinuities Branded Physician Gx model influence Hungary Generic penetration 15 Source: Teva Europe
Slide 16: Progress implementation - room for generic penetration
Progress implementation - room for generic penetration B DK FR GER IT NL P SP S UK Introduce a coherent generic medicine policy Encourage price differentiation / competition in current regulatory framework Disseminate price information to actors Increase confidence of
Slide 17: Q3/2007 – International (ROW) Pharmaceutical Sales
Q3/2007 – International (ROW) Pharmaceutical Sales ($ Millions) Up 12% 354 316 130 107 86 Q3/03 Q3/04 Q3/05 Q3/06 Q3/07 17
Slide 18: TAPI – Teva Active Pharmaceutical Ingredients
TAPI – Teva Active Pharmaceutical Ingredients Teva’s API division is the Industry leader for active pharmaceutical ingredients (API) for generics Manufactures and sells approx. 250 products to Teva's finished pharmaceutical product businesses and to third parties Be First – Stay Last Provides Teva w
Slide 19: Teva API Sales
Teva API Sales ($ Millions) Up 24% Third Party 1,327 Internal 1,067 940 587 Up 12% 524 654 501 Up 36% 371 740 321 326 Up 2% 543 439 141 130 Down 8% 283 180 196 Up 9% 2003 2004 2005 2006 Q3/06 Q3/07 19
Slide 20: Q3/2007 – Copaxone In-Market Global Sales
Q3/2007 – Copaxone® In-Market Global Sales ($ Millions) US Up 20% Non US Up 24% 1,414 1,176 441 26% 936 400 394 354 25% 720 160 916 17% 311 782 128 225 280 625 226 495 24% 2003 2004 2005 2006 Q3/06 Q3/07 20
Slide 21: Copaxone 40 mg
Copaxone® 40 mg • Copaxone®, at a 40 mg/day dose, has the potential to provide better efficacy compared to all approved first-line treatments • Results of 9-month Phase II study, which compared to Copaxone® 20 mg/day – Patients taking the higher dose showed a 38% greater reduction in inflammatory di
Slide 22: Laquinimod
Laquinimod • A novel, oral product for relapsing MS • Licensed from Sweden’s Active Biotech • Positive results of Phase IIb study – Demonstrated that an oral 0.6 mg dose of laquinimod given daily significantly reduced MRI disease activity by 38 percent in RRMS patients – Favorable trend towards redu
Slide 23: Azilect for Parkinson's
Azilect® for Parkinson’s • First once-daily medication for PD; Only MAO-B inhibitor with an indication for both monotherapy and adjunct therapy • Launched in 28 countries since initial launch in Israel in early 2005 • Patients are responding positively to the convenient once daily dosing and the goo
Slide 24: SABA TRx Weekly Market Share
24 CFCs HFAs 26-Oct-07 21-Sep-07 17-Aug-07 SABA TRx Weekly Market (Share) 13-Jul-07 8-Jun-07 4-May-07 30-Mar-07 23-Feb-07 IMS NPA 10/26/07 19-Jan-07 15-Dec-06 10-Nov-06 6-Oct-06 1-Sep-06 100% 80% 60% 40% 20% 0%
Slide 25: SABA-HFA TRx Market Share
SABA-HFA TRx Market (Share) 80% 70% 60% ProAir HFA 50% Proventil HFA 40% Ventolin HFA 30% Xopenex HFA 20% 10% 0% 1-Sep-06 6-Oct-06 10-Nov-06 15-Dec-06 19-Jan-07 23-Feb-07 30-Mar-07 4-May-07 8-Jun-07 13-Jul-07 17-Aug-07 21-Sep-07 26-Oct-07 25 IMS NPA 10/26/07
Slide 26: Cash Flow Highlights
Cash Flow Highlights ($ Millions) Q3/07 Q2/07 Q1/07 Q4/06 Q3/06 Q2/06 YR2006 Net Income 525 515 342 461 606 488 546 Cash flow from operating activities 332 437 499 765 793 212 2,058 - - Acquisition of companies 17 5 2 24 3,587 Purchase of fixed assets (net of proceeds from sale) 104 106 149 129 76 9
Slide 27: Financial Strength
Financial Strength ($ Billions) 30-Sep-2007 30-Jun-2007 Total Equity 12.92 B 12.06 B Total Debt 5.31 B 5.51 B of which: short-term 1.95 B 1.52 B long-term * 3.36 B 3.98 B Leverage ** 29% 31% * Includes both converts of $1.4 bn and straight debt of $1.5 mn issued on Q1/06 ** [DEBT/(Debt+Equity)] 27
Slide 28: Consolidated Statement of Income
Consolidated Statement of Income ($ Millions) % of Sales ($ Millions) Q3/07 Q2/07 Q1/07 Q4/06 Q3/06 Q3/07 Q2/07 Q1/07 Q4/06 Q3/06 Sales 2,366 2,386 2,080 2,277 2,286 100% 100% 100% 100% 100% Gross profit 1,250 1,243 1,037 1,103 1,262 53% 52% 50% 48% 55% R&D – net 141 137 135 137 135 6% 6% 6% 6% 6% S
Slide 29: Sales (in $ Millions)
Sales (in $ Millions) CAGR = 37% +11% 8,408 6,832 6,131 5,250 4,799 3,276 2003 2004 2005 2006 1-9/06 1-9/07 29
Slide 30: R&D (in $ Millions)
R&D (in $ Millions) CAGR = 32% +15% 495 413 369 358 338 214 2003 2004 2005 2006 1-9/06 1-9/07 30
Slide 31: Dividends (in $ Millions)
Dividends (in $ Millions) CAGR = 41% +29% 246 224 175 174 133 88 2003 2004 2005 2006 1-9/06 1-9/07 31
Slide 32: NASDAQ Top 20 Companies
NASDAQ Top 20 Companies As of Nov. 1, 2007 1 MSFT Microsoft Corporation $ 329,343,372,560 2 CSCO Cisco Systems, Inc. $ 194,564,065,300 3 INTC Intel Corporation $ 151,489,600,000 4 AAPL Apple Inc. $ 160,622,692,700 5 GOOG Google Inc. $ 157,115,014,600 6 ORCL Oracle Corporation $ 109,339,968,500 7 QCO
Slide 33: Driving Growth, Expanding Leadership
Driving Growth, Expanding Leadership Teva’s growth is fueled by: • Increasing demand globally for generics • Expanding global market reach • The generic industry’s leading product offering • Unmatched vertical integration • The industry’s most robust generic pipeline • Growing specialty pharmaceutic
Slide 34: CIBC World Markets 18th Annual Healthcare Conference
CIBC World Markets 18th Annual Healthcare Conference Dan Suesskind George S. Barrett Teva Pharmaceutical Industries Ltd. November 7, 2007
Teva Pharmaceutical Industries — CIBC World Markets 18th Annual Healthcare Conference 2007 on 6ix