Daiichi Sankyo Company, Limited · TSE:4568

Daiichi Sankyo — FY2010 Earnings Presentation

28 slides from Daiichi Sankyo's earnings presentation, May 13, 2011

  1. Slide 1: Top Management Presentation: Financial Results for Fiscal 2010

    Top Management Presentation Financial Results for Fiscal 2010 (April 1, 2010 to March 31, 2011) Friday, May 13, 2011 Joji Nakayama, President and CEO

  2. Slide 2: Key Topics in FY2011

    Key Topics in FY2011 © Daiichi-Sankyo

  3. Slide 3: Major Topics for FY2011

    Major Topics for FY2011 3 Expansion in Sharp Focus/ Maintain/Expand Emerging Reinforcement Core Business Markets in R&D Japan ・Expand Innovative ・Further Growth in ・Oncology Pharmaceuticals Business India ・Strengthen Established ・Accelerate ・Steady progress on Pharmaceuticals, OTC, and business grow

  4. Slide 4: Effient: Factors of increased growth (US)

    Effient®: Factors of increased growth (US) 4 • Successful execution of customer centric sales model Company Focused sales efforts in high volume PCI centers and key OAP prescribers (Alliance) Effient® uptake for formulary and protocol inclusion is improved significantly • Effective promotional messa

  5. Slide 5: New to Brand Rx shows strong growth (US)

    New to Brand Rx shows strong growth (US) 5 Sales Force Redeployment (Rx/New to Brand*) 14000 12392 12000 10502 10379 9689 10000 9206 9173 10556 8800 10185 8132 9794 9679 9154 8000 6472 6000 5168 4416 3640 4000 2691 1934 2000 1058 0 2009 2010 2011 * New to Brand is an early indicator for future growt

  6. Slide 6: Share of Effient, Hospital, PCI Market

    Share of Effient®, Hospital, PCI Market 6 16.0% Clopidogrel’s Source of Business 14.1% CY2009 (company analysis) 14.0% 12.4% 12.0% 11.2% Other 11.9% PAD 14% 9.8% 11.3% 5% 10.0% 9.5% 8.7% 9.7% ACS MM 8.0% 8.9% CY2009 42% 7.5% Stroke US 6.0% 6.1% /TIA $5.6B 20% 4.9% 4.0% 3.7% 3.3% PCI/CABG 2.0% 2.4% 1

  7. Slide 7: Sales Growth of Effient/Efient

    Sales Growth of Effient®/Efient® 7 Effient®/Efient® Sales Expansion Launch：Europe (March ‘09), US ( August ’09) October 2010：Re-execute Marketing approach for enhancing sales growth Boost by additional indication, TRILOGY ACS (Planned conclusion: Apr-2012) Effient®/Efient® Global Sales USD Mn 56.3 4

  8. Slide 8: Reinforce Marketing Capabilities in Japan

    Reinforce Marketing Capabilities in Japan 8 Optimally harness marketing capability Optimally allocate dominant Japanese network of 2,400 MRs to maximize sales clout Maximize Olmesartan revenues Boost combined domestic sales of Olmetec and Rezaltas by 26%, to ¥110 billion in fiscal 2011 Seamless laun

  9. Slide 9: Product Availability

    Product Availability 9 Active pharmaceutical ingredients (API) Pravastatin Olmesartan • Manufactured at Onahama (Japan) • Manufactured at Odawara and Onahama (Japan) • Production to restart in September, shipping from • Capacity increased at Odawara November 2011 9 Secure sufficient inventory by par

  10. Slide 10: Plant Situations and Schedules

    Plant Situations and Schedules 10 May Jun Jul Aug Sep Oct Nov Dec Onahama Plant Restart production (Fukushima) Plant Restoration in September Partly Operate Conserve Hiratsuka Plant on holidays electricity Normal operations (Kanagawa) June 8, Memary Launch Odawara Plant Partly Operate Conserve Opera

  11. Slide 11: Expansion in Emerging Markets: India

    Expansion in Emerging Markets: India 11 Strategic Intent Achieve true potential as a leader in the country, to capitalize on strong growth in the Indian Pharmaceuticals Market (IPM), and to grow faster than the IPM Estimated market growth: US$12.6 Bn (2009) to US$35~70 Bn (2020) CAGR 10~17% Project

  12. Slide 12: Expansion in Emerging Markets: China

    Expansion in Emerging Markets: China 12 Strategic Intent Increase presence in a fast-growing, highly attractive Chinese market (Fifth largest drug market in the world) Invest aggressively to lift sales from 800 million RMB in fiscal 2010, to 3 billion RMB in fiscal 2015 • Streamline two operations i

  13. Slide 13: Acquisition of Plexxikon

    Acquisition of Plexxikon 13 Profile • Established in Berkeley, California, in 2001 (unlisted) • CEO: K. Peter Hirth, Ph.D. • Approximately 45 employees Secure late-stage compounds Reinforce oncology capabilities and accelerate market entry Build technological foundation Scaffold-Based Drug Discovery

  14. Slide 14: Global Research Functions

    Global Research Functions 14 Daiichi Sankyo /Daiichi Sankyo RD Associe Oncology, Cardiovascular-Metabolics and Frontier Areas Low molecular medicines and biologics Original lead generation, lead search and optimization Translational Research Asubio Pharma Plexxikon Inflammation Regeneration SBDD Pla

  15. Slide 15: Steady Progress in Oncology Pipeline

    Steady Progress in Oncology Pipeline 15 NMEs 10 denosumab (AMG 162) NDA filed ・Maximize internal resources vemurafenib (PLX4032) ・Secure external resources Phase III tivantinib (ARQ 197) tigatuzumab Phase II 6 6 (CS-1008) denosumab denosumab nimotuzumab Phase I (AMG 162) (AMG 162) (DE-766) tivantini

  16. Slide 16: Memo

    Memo 16 © Daiichi-Sankyo

  17. Slide 17: Financial Overview

    Financial Overview © Daiichi-Sankyo

  18. Slide 18: Overview of FY2010 Results and FY2011 Forecast

    Overview of FY2010 Results and FY2011 Forecast 18 Overview of Income Statement Ranbaxy Group Note : Figures of Ranbaxy are pre-adjusted before consolidation FY2011 2009 2010 2011(Jan-Dec) FY2009 FY2010 (Jan-Dec) (Jan-Dec) Results Results Forecast YoY Results Results Forecast YoY Net Sales 952.1 967.

  19. Slide 19: Net Sales factors

    Overview of FY2010 Results - compared with FY2009 results - 19 880.0 920.0 960.0 1000.0 1040.0 JPY Bn FY2009 FY2009 Results 952.1 Japan +33.7 ・Olmetec, Loxonin etc. ・Rezaltas +4.7, Inavir +6.6 etc. Japan 33.7 ・Return of sales rights -8.0 Global Business +18.1 DSHC DSHC 1.1 ・Daiichi Sankyo Inc.(DSI)

  20. Slide 20: Operating Income factors

    Overview of FY2010 Results - compared with FY2009 results - 20 0.0 50.0 100.0 150.0 JPY Bn FY2009 Results 95.5 Operating Income factors Japan Japan (Incl. DSHC) +5.0 5.0 ・NHI Price Cut -25.0 (Incl.DSHC） (Incl.DSHC) Global Business Global Business (Incl.RLL) +33.0 33.0 ・Ranbaxy +21.4 (Incl.RLL） (Incl

  21. Slide 21: Ordinary Income and Net Income factors

    Overview of FY2010 Results - compared with FY2009 results - 21 0.0 40.0 80.0 120.0 160.0 Ordinary Income factors JPY Bn FY2009 Results 103.1 Operating Income 26.6 Non-operating Income: ・Decrease in forex derivative valuation gain of Non-operating Income 5.0 Ranbaxy Non-operating Expenses 7.0 Non-ope

  22. Slide 22: Overview of FY2010 Results - comparison with Jan-11 forecast

    Overview of FY2010 Results - comparison with Jan-11 forecast - 22 Forecast FY2010 Results Difference as of Jan (Apr-Mar) Net Sales 965.0 967.4 2.4 Cost of Sales 280.0 281.7 1.7 SG&A 565.0 563.5 -1.5 Expenses R&D Expenses 194.0 194.3 0.3 Other Decrease in promotional Expenses 371.0 369.2 -1.8 expense

  23. Slide 23: Net Sales factors: FY2011 Forecast

    Overview of FY2011 Forecast - compared with FY2010 results - 23 940.0 960.0 980.0 1000.0 1020.0 JPY Bn FY2010 FY2010 Results Results 967.4 Japan +19.0 Japan Japan 19.0 ・Olmesartan (Olmetec + Rezaltas) +23.0 ・Return of sales rights -24.0 ・New products etc. Net Sales factors DSHC DSHC 4.2 Global Busin

  24. Slide 24: Operating Income factors: FY2011 Forecast

    Overview of FY2011 Forecast - compared with FY2010 results- 24 0.0 50.0 100.0 150.0 JPY Bn FY2010 FY2010 Results Results 122.1 Operating Income factors Japan Japan (Incl. DSHC) +12.5 Japan (Incl.DSHC） 12.5 ・Sales Increase +23.2 (Incl.DSHC) ・Intense promotion of new products Global Business (Incl.RLL

  25. Slide 25: Sales of Major Products

    Sales of Major Products 25 JPY Bn FY2009 FY2010 FY2011 Regional sales of Olmesartan Results Results Forecast Olmesartan 238.3 241.5 270.0 11.8% Japan U.S. EU Others Levofloxacin 87.2 69.1 53.0 -23.3% JPY Bn Global 300.0 Pravastatin 55.0 44.9 38.0 -15.3% 17.0 Prasugrel 250.0 0.5 5.2 - (alliance reven

  26. Slide 26: Major R&D Pipeline

    Major R&D Pipeline 26 Therapeutic Area Phase 1 Phase 2 Phase 3 Application ■ CS-3150 (Antihypertensive) ■ DU-176b (US/EU) ■ DU-176b (US/EU/JP/Asia) ■ DU-176b (JP) （Edoxaban / post surgical VTE / (Edoxaban / AF / oral factor Xa inhibitor） (Edoxaban / post surgical VTE / oral factor Xa inhibitor） ■ DU

  27. Slide 27: Movement since January 2011 update

    Movement since January 2011 update 27 Therapeutic Area Phase 1 Phase 2 Phase 3 Application Approved New Discontinued Change of Stage DU-176b (JP) CS-1036 (JP/Asia) (Edoxaban / post Cardiovascular- DS-7309 (Glucose surgical VTE / oral Metabolics (Anti-diabetes) absorption factor Xa inhibitor) inhibit

  28. Slide 28: Contact address regarding this material

    Contact address regarding this material Daiichi Sankyo Co., Ltd. Corporate Communications Department TEL: +81-3-6225-1126 Each numerical value regarding the future prospect in this material is derived from our judgment and assumptions based on the currently available information and may include risk

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