Teva Pharmaceutical Industries Limited · TASE:TEVA
Teva Pharmaceutical Industries — Merger or Acquisition (May 2011)
29 slides from Teva Pharmaceutical Industries's merger presentation, May 2, 2011
Slide 1: Teva's Acquisition of Cephalon
Teva’s Acquisition of Cephalon May 2, 2011
Slide 2: Safe Harbor Statement
Safe Harbor Statement Forward‐Looking Statements Teva’s Safe Harbor Statement under the U. S. Private Securities Litigation Reform Act of 1995: The statements, analyses and other information contained herein relating to the proposed acquisition and its effects on financial and operating performance,
Slide 3: Agenda
Agenda Shlomo Yanai – Strategic Rationale and Business Opportunity Kevin Buchi – Cephalon’s Unique Contribution to Teva Bill Marth – Contribution to our Global Operations Eyal Desheh – Financial Aspects of the Transaction Q&A 3
Slide 4: Shlomo Yanai: Strategic Rationale and Business Opportunity
Shlomo Yanai President and CEO, Teva Pharmaceutical Industries Ltd. Strategic Rationale and Business Opportunity 4
Slide 5: Compelling Value Creation
Compelling Value Creation Portfolio: Provides diversification and access to new therapeutic areas Pipeline: Highly complementary, late-stage pipeline Strong Strategic Fit enhances Teva’s oncology, CNS and respiratory programs People: Search & develop capabilities with strong track record in br
Slide 6: On Track Towards Our Long-Term Strategic Goals
On Track Towards Our Long-Term Strategic Goals $31B Cephalon adds: $21.5-22.1B (1) ~$2.8B 2010A ~80% branded $18.5-19B Consistent with Teva’s long- term strategic goals $16.1B Increases diversity across $13.9B Revenue Revenue $31B $31B business lines, products and geographies Net Net Income Inco
Slide 7: Teva's Specialty Business Strategy
Teva’s Specialty Business Strategy Specialty pharma business is a key contributor to Teva’s sustainable and balanced business model Our focus is on our current therapeutic niches while exploring opportunities to expand We leverage our unique operating model, heritage and culture 7
Slide 8: Teva Branded - Multifaceted Approach & Expertise
Teva Branded - Multifaceted Approach & Expertise 2010A Revenue: $4.6B PF2010A Revenue: $7B 2015E Revenue: $9.2B 2010 2015 8
Slide 9: Increasing Scale and Diversity of Branded Portfolio
Increasing Scale and Diversity of Branded Portfolio 2010A Branded Revenue 2010PF Branded Revenue Oncology Pain Women's 7% 6% Health Women's 5% Health Biosimilars 8% Biosimilars 2% Respiratory 3% 19% Respiratory 13% Other CNS 1% Copaxone 70% Provigil/ Copaxone Nuvigil 47% 19% 9
Slide 10: Current Specialty Pharma Landscape
Current Specialty Pharma Landscape 2010A Worldwide Net Specialty Pharma Sales ($mm) $4,563 $4,117 $3,973 $3,128 $2,944 $2,300 $1,500 $1,468 Teva FRX (1) AGN (2) Shire WCRX (3) Cephalon VRX (4) ENDP Source: Company filings. Note: Excludes generics and branded generics. (1) Represents CY2010A revenues
Slide 11: Teva + Cephalon: Continued Leadership in Specialty Pharma
Teva + Cephalon: Continued Leadership in Specialty Pharma 2010A Worldwide Net Specialty Pharma Sales ($mm) $7,000 $4,117 $3,973 $3,128 $2,944 $1,500 $1,468 (2) (3) (4) (1) T+C FRX AGN Shire WCRX VRX ENDP + Source: Company filings. Note: Excludes generics and branded generics. (1) Represents CY2010A
Slide 12: Kevin Buchi: Cephalon's Unique Contribution to Teva
Kevin Buchi CEO, Cephalon Cephalon’s Unique Contribution to Teva 12
Slide 13: Global Biopharmaceutical Company with Well-Diversified Product and Geographic Mix
Global Biopharmaceutical Company with Well-Diversified Product and Geographic Mix 2010A sales: $2,811mm(1) 3,600+ employees(2) U.S. Europe 2010A sales: $2,102mm 2010A sales: $659mm 2,000+ employees 1,600+ employees Products: Abelcet, Actiq, CNS Pain Oncology Diclofenac, Provigil, Spasf
Slide 14: A History of Strong Sales Growth
A History of Strong Sales Growth Cephalon Worldwide Net Sales ($mm) 32% R: es CAG Sal Note: Includes both branded and generic product sales and excludes other revenue 14
Slide 15: William S. Marth: Contribution to our Global Operations
William S. Marth President and CEO, Teva - Americas Contribution to our Global Operations 15
Slide 16: Cephalon is an Attractive Partner
Cephalon is an Attractive Partner Marketed product portfolio with strong presence in three specialty areas Search & develop capabilities with strong track record Late-stage pipeline with compelling value Global commercial footprint and infrastructure Complementary branded and generic presence in gro
Slide 17: Cephalon Commercial Footprint and Infrastructure
Cephalon Commercial Footprint and Infrastructure US: 2010A sales: $2,102mm Europe: 2010A sales: $659mm Sells 170 products in more than 100 countries 17
Slide 18: Marketed Product Portfolio with Strong Presence in Three Specialty Areas
Marketed Product Portfolio with Strong Presence in Three Specialty Areas Product Indication Launch Year 2010A sales ($mm) Excessive sleepiness associated with treated obstructive sleep apnea (OSA), shift work disorder 1998 $1,124 and narcolepsy Excessive sleepiness associated with treated obstructiv
Slide 19: Combination Enhances and Diversifies Teva's Branded Business
Combination Enhances and Diversifies Teva’s Branded Business Leading brands Teva Cephalon 2010A PF sales ($mm) CNS $4,568 Women’s $374 Health Respiratory $875 Pain $422 Oncology $491 19
Slide 20: Attractive, Late-stage Pipeline
Attractive, Late-stage Pipeline Preclinical Phase I Phase II Phase III Filing Milestones Omapro (3rd line CML) Phase III complete; NDA submission H2 2011 TD Hydrocodone (chronic pain) Complete Phase III by YE 2011 sNDA submission expected in 2011; Phase III study Treanda (1st line iNHL) expected to
Slide 21: The Combined Branded Pipeline
The Combined Branded Pipeline Franchise Marketed Products End of Phase III 2010-2012 End of Phase III 2013-2015 Copaxone – MS Laquinimod ‐ MS Azilect – Parkinson’s Azilect – MSA Provigil Nuvigil ‐ bipolar Nuvigil ‐ wakefulness Gabitril Treanda – NHL relapse / CLL StemEx TV‐1101 – 3 indications Trise
Slide 22: Complementary Generic Presence
Complementary Generic Presence Broad geographic presence in niche markets CEE, Africa and LatAm Switzerland: #1 generic company #4 in total pharma market Development & formulation unit (GMP) Strong brand recognition 22
Slide 23: Eyal Desheh: Financial Aspects of the Transaction
Eyal Desheh CFO, Teva Pharmaceutical Industries Ltd. Financial Aspects of the Transaction 23
Slide 24: Key Transaction Terms
Key Transaction Terms Purchase $81.50 per share in cash Price Enterprise value of $6.8 billion including $1.3 billion in cash and marketable securities Synergies At least $500 million from the combined organization in annual cost synergies within three years Accretive to GAAP earnings within
Slide 25: Highly Attractive Financial Outcome
Highly Attractive Financial Outcome Scale and growth 2010A PF revenue base of $18.9 billion, of which $7 billion is branded Strengthens and diversifies our revenue base Branded sales contributed 36% of 2010A PF revenues vs. 28% standalone Accretive Based on non-GAAP EPS, accretive immedi
Slide 26: Significant Synergy Opportunity
Significant Synergy Opportunity At least $500 in cost synergies per annum within three years Potential additional upsides including: Expanded commercial opportunities Additional long-term operational and vertical integration opportunities Gradual reduction of blended tax rate 26
Slide 27: Maintaining Strong Balance Sheet and Credit Profile
Maintaining Strong Balance Sheet and Credit Profile Strong liquidity position Maintain more than $1 billion cash on hand post closing Balance sheet flexibility provides liquidity for future strategic opportunities Post 12/31/10 closing actual estimate Total Debt $ 6.9 B $12.7 B Equity $ 22 B $
Slide 28: Compelling Value Creation
Compelling Value Creation Portfolio: Provides diversification and access to new therapeutic areas Pipeline: Highly complementary, late-stage pipeline Strong Strategic Fit enhances Teva’s oncology, CNS and respiratory programs People: Search & develop capabilities with strong track record in br
Slide 29: Thank you!
TeWAR | hank you!
Teva Pharmaceutical Industries — Merger or Acquisition (May 2011) on 6ix