Orion Oyj Class A · OMXHEX:ORNAV
Orion Oyj Class A — Investor Day (December 2009)
38 slides from Orion Oyj Class A's investor day presentation, Dec 1, 2009
Slide 1: To 2012 and onwards – Orion Capital Markets Day
To 2012 and onwards Orion Capital Markets Day 1 December 2009 in Helsinki To 2012 and onwards Orion CMD 2009 9:05 Orion in change Timo Lappalainen CEO Targeting selected therapy areas Liisa Hurme SVP, Proprietary Products Opportunities opening up in Nordic markets Markku Huhta-Koivisto SVP, Specialt
Slide 2: Orion in change
This presentation contains forward-looking statements which involve risks and factors of uncertainty. These statements are not based on historical facts but relate to the company’s future activities and performance. They include statements about future strategies and anticipated benefits of these st
Slide 3: Estimated annual growth 4–7% through 2013
Estimated annual growth 4–7% through 2013 • Estimated global pharma market growth 4–6 % in 2010 1) – sales to exceed USD 825 billion in 2010 • Sales to exceed USD 975 billion by 2013 1) • Generic market ca. USD 80 billion, down by 4% 2) – top 8 countries cover 84% of the total generics sales – marke
Slide 4: Profitable growth and increased shareholder value
Profitable growth and increased shareholder value, whilst keeping business risks under control li o St p tfo re o s ng iti r po th on ct e n in du in E o g ur pr Partners th o ve e pe ma and networks iti et rk mp et Co Efficient and competitive operations Finland Market leader Scandinavia Establishe
Slide 5: Orion's financial objectives revised
Orion’s financial objectives revised Net sales and profitability in next few years depend on rate of: • decline in sales of Parkinson’s drugs • growth in sales of other products Orion’s revised financial objectives 1. Ensuring financial stability 2. Creating foundation for long-term profitable growt
Slide 6: Targeting selected therapy areas
www.orion.fi Targeting selected therapy areas Liisa Hurme, SVP Proprietary Products Orion Capital Markets Day 1 December 2009 Helsinki 6
Slide 7: Innovative treatments worldwide
Innovative treatments worldwide Orion’s own operations Operated via partners Growth is based on competitive product portfolio Specialist care Maximise Stalevo, Simdax, Easyhalers current product portfolio Dexmedetomidine i.v. for EU Own European-wide Advancing Easyhaler combi, Stalevo for Japan, pre
Slide 8: Neurology: Parkinson's disease and Stalevo
Parkinson’s disease – one of the most common progressive neurological diseases Global Parkinson’s drug market Neurology • Affects globally more than 6 million people in 2007 2) USD million / Total N4A market split – over 1 million patients in Europe 1) – 1–1.5 million patients in the USA 21% • Avera
Slide 9: Stalevo's market shares still growing
Stalevo’s market shares still growing Growth of Stalevo® vs. total N4A market Market share of Stalevo® MAT 9/08 vs. MAT 9/08 Neurology Growth % Market share % 20 20 15 15 10 10 5 5 0 0 EU top5 DE UK ES I FR -5 EU top5 DE UK ES I FR MAT 9/08 MAT 9/09 Total N4A market Stalevo • Currently, the combined
Slide 10: Simdax – platform for European Intensive Care portfolio
Simdax – platform for European Intensive Care portfolio • Simdax® for acute heart failure treatment with Simdax® hospital sales in Italy and Spain Intensive care rapid and sustained symptomatic, haemodynamic and neurohormonal improvement EUR million / MNF – marketed in 53 countries – Orion present i
Slide 11: Urology and respiratory diseases
From Nordic leader to European player • Enanton® for advanced prostate cancer Urology – flagship product in the Nordic region – broad portfolio with 1 month, 3 month and 6 month treatments • Vantas® for advanced prostate cancer – new implant formulation – Orion’s experience in urology – platform for
Slide 12: Global coverage with Easyhaler device
Global coverage with well-known Easyhaler device Winning concept with Easyhaler® Respiratory • Salbutamol Easyhaler® – simple and easy to use and therefore suitable especially for children and elderly – preferred by patients Beclomethasone – broad product offering Easyhaler® • Strong growth continue
Slide 13: Opportunities opening up in Nordic Markets
www.orion.fi Opportunities opening up in Nordic Markets Markku Huhta-Koivisto SVP, Specialty Products Orion Capital Markets Day 1 December 2009 13
Slide 14: Off-patent, prescription and self-care products
Off-patent, prescription and self-care products for GPs, specialists, pharmacists, hospitals and consumers • Branded generics market value Specialty Products net sales in 2008 and potential is growing – products with added value 11% – products under limited patent protection • Generic markets are ex
Slide 15: Launches expanded; market leadership in Finland
Launches for Specialty Products expanded Launches for Specialty Products Number of product/country combinations annually 120 100 80 60 40 20 0 2005 2006 2007 2008 E2009 E2010 29 1 December 2009 Orion CMD 2009 Orion’s market leadership in Finland strengthened • Finnish wholesales of human Leading pha
Slide 16: Orion establishing home market in Scandinavia
Orion establishing home market in Scandinavia • Self-care market in Scandinavia Human Pharmaceuticals market covers 8–12% of the total pharma in Scandinavia (MAT 09/09) market EUR billion • Generics market in Scandinavia covers 1.4 – 10–15% of the total pharma +2.3% markets in value and – ca. 40% of
Slide 17: Strong growth in Scandinavia
Strong growth in Scandinavia Specialty Products net sales in Scandinavia (MAT 09/09) Sales Growth % (EUR million) in local currency Sweden Rx 3.7 +51% HRT 1.4 -10% Self-care 2.0 +4% Total 7.0 +20% Denmark Rx 6.8 +40% HRT 0.3 - 8% Self-care 2.5 +3% Total 9.6 +26% Norway Rx 1.6 +70% HRT 0.0 0% Self-ca
Slide 18: Questions and answers
Opportunities opening up in Nordic Markets Markku Huhta-Koivisto SVP, Specialty Products www.orion.fi Questions and answers Orion Capital Markets Day 1 December 2009 in Helsinki 18
Slide 19: Efficiency is everything
Efficiency is everything Jari Karlson, CFO Orion Capital Markets Day 1 December 2009 in Helsinki Orion’s strategic focus is on strengthening the competitiveness St re ng th io en ol rtf in po g th t uc e m od ar pr ke ve tp Partners i tit os pe i and networks tio om n C in E ur op e Efficient and co
Slide 20: Why efficiency matters?
Why efficiency matters? Pharma industry is facing major structural changes • Global health care cost containment • Continuous price cuts especially in generics due to competition and regulatory actions • High prices even for new proprietary products no longer self evident • High obligatory costs in
Slide 21: Overall productivity has steadily improved
Orion’s overall productivity has steadily improved Sales per person (in thousands of euros) 250 Change 2004 9/2009* % Net sales 553 758 +37% 230 (EUR million) Personnel 2,997 3,125 +4% 210 Sales/person 184 243 +31% (EUR thousand) 190 170 150 2004 2005 2006 2007 2008 MAT 9/09 * Net sales as a rolling
Slide 22: Flexibility in R&D operations and cost structure
Flexibility in R&D operations and cost structure • Emphasis on R&D collaborations and partnerships – from fixed to variable cost structure – reduction of close to 200 persons from internal R&D during 2009 – risk sharing models also in early research and partnering usually for clinical phase III at t
Slide 23: Increasing number of product launches
Increasing number of product launches Orion’s product launches of human pharmaceuticals Number of product/country combinations • Increase has required major 160 improvements in the launch process and smooth cooperation 140 between most functions within the 120 company 100 • Overall launch process ha
Slide 24: Lessons learned from recent market entries
www.orion.fi Lessons learned from recent market entries Pekka Kaivola SVP, Global Sales Orion Capital Markets Day 1 December 2009 in Helsinki 24
Slide 25: Orion is building European presence
Orion is building European presence 2005 Orion Pharma is a North European, R&D based, ... 2007 Orion is a European, R&D-based, ... – European sales coverage for new proprietary products – European sales coverage to enable successful in-licensing 2009 Orion is an innovative, European, R&D-based, ...
Slide 26: Roadmap for European presence
Roadmap for European presence Planning, Building Planning Organic understanding portfolios and training and developing the ”masterplan” growth on markets needed resources – Simdax as a vehicle Implementation and integration Simdax as a vehicle – planning, M&A’s training and developing the ”masterpla
Slide 27: Planning portfolios and sales resources
Planning portfolios and sales resources • Focus on customers, who diagnose and initiate the treatment with products where price holds – dexmedetomidine – old cash cows: selegiline, tamoxifene, warfarin, HRT’s Evolution of Portfolio – Vantas® (histrelin) – Easyhaler® portfolio – Simdax® (levosimendan
Slide 28: Operational model at country level; key lessons
Operational model at country level – case Italy • Purely sales driven organisation focused on key customers – 1 marketing & sales manager – 7 sales representatives • All other local functions outsourced • Headquarter support in medical, legal, controlling, accounting, etc. Key lessons from recent ex
Slide 29: Further development of operations – Orion Pharma UK
Further development of operations – case Orion Pharma UK • From red figures in 2004 to one of the most profitable • Competencies developed • Learning and lean organisation operations today through concrete actions – focus on customers, exclude everything else – do what you can afford – high customer
Slide 30: Partnering provides more possibilities
www.orion.fi Partnering provides more possibilities Reijo Salonen SVP, R&D Orion Capital Markets Day 1 December 2009 in Helsinki 30
Slide 31: Pharmaceuticals are high return investments; Orion as R&D partner
Pharmaceuticals are high return investments for societies Total Treatment (USD 217.6 billion) Stroke $10 $14 + Total Productivity (USD 905.1 billion) = Pulmonary Conditions $26 $47 USD 1.1 trillion Diabetes $17 $73 Mental Disorders $28 $88 Hypertension $23 $172 Treatment Costs Productivity Losses He
Slide 32: Different partners for NCEs and generic products
Different partners for NCEs and generic products Late stage Research Early development development Target Hit to Lead Lead Candidate Phase I Phase II Phase III identification generation optimisation selection, and validation preclinical dev. 8–24 mth 12–24 mth 18–36 mth 12–24 mth 12–14 mth 12–36 mth
Slide 33: Partners at late stages share risks and profits
Partners at late stages share risks and profits Target Hit to Lead Lead Candidate Phase I Phase II Phase III identification generation optimisation selection, and validation preclinical dev. 8–24 mth 12–24 mth 18–36 mth 12–24 mth 12–14 mth 12–36 mth 18–48 mth Partners in late stages • often bigger i
Slide 34: Orion's own expertise focused on selected areas
Orion’s own expertise is focused on selected areas Target Hit to Lead Lead Candidate Phase I Phase II Phase III identification generation optimisation selection, and validation preclinical dev. 8–24 mth 12–24 mth 18–36 mth 12–24 mth 12–14 mth 12–36 mth 18–48 mth Orion’s own resources and Contract Re
Slide 35: Orion's pharmaceutical research pipeline
Orion’s pharmaceutical research pipeline Pre- Clinical phases Regist- Project Indication clinical ration I II III Histrelin implant (Vantas®) advanced prostate cancer Endo Pharmaceuticals Toremifene prostate cancer, osteoporosis GTx sedative for patients Dexmedetomidine (i.v.) for Europe in intensiv
Slide 36: Questions and answers
www.orion.fi Questions and answers Orion Capital Markets Day 1 December 2009 in Helsinki 36
Slide 37: Closing remarks – Orion as a European partner
Closing remarks Timo Lappalainen CEO Orion Capital Markets Day 1 December 2009 in Helsinki Orion as a European partner – what we have achieved? • Value added products acquired to li o St p selected therapy areas tfo re o s ng iti r po th on • Close to 150 launches (product/market) ct e n in du in E
Slide 38: www.orion.fi
www.orion.fi 38