Teva Pharmaceutical Industries Limited · TASE:TEVA
Teva Pharmaceutical Industries — Cowen 29th Annual Health Care Conference 2009
28 slides from Teva Pharmaceutical Industries's conference presentation, Mar 18, 2009
Slide 1: Introducing the world leader in generic pharmaceuticals
Introducing the world leader in generic pharmaceuticals Bill Marth, President and CEO, Teva North America Cowen 29th Annual Health Care Conference Wednesday, March 18, 2009
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 MANAGEMENT'S CURRENT BELIEFS AND EXPECTATIONS AND INVOLVE A NUMBER OF KNOWN AND UNKNOWN RISKS AND UNCERTAINTIES THAT COU
Slide 3: Introducing Teva; 2008 at a glance; The future of generics; Outlook
Introducing Teva 2008 at a glance The future of generics Outlook
Slide 4: Introducing Teva
Introducing Teva Established 1901 2008 sales $11bn, $14bn pro forma including Barr 65 countries 38,000 employees
Slide 5: Three lines of business
Three lines of business 2008 results 100%=$11.1bn 5% API API (external (external only) only) synergies 73% Generic Generic pharmaceuticals pharmaceuticals balance 22% Innovative Innovative and and branded branded pharmaceuticals pharmaceuticals
Slide 6: Globally diversified business
Globally diversified business 100% = $1.1 bn $9.4 bn $9.4 bn $11.1$11.1 bn bn Israel International Europe North America
Slide 7: Leadership in U.S. generics
Leadership in U.S. generics % of total Rx’s, full year, generics only 2008 Rx’s 2007 thousand 598 307 223 189 95 !" # 93 $% 90 & ~1.6 million Rx’s ~1.6 million Rx’s per per day day 82 ! 50% more 50% more than than #2 #2 78 '%" 61 Source: IMS National Prescription Audit MAT December 2008
Slide 8: But also leading the total pharma market
But also leading the total pharma market % of total Rx’s, full year, branded and generics 2008 Rx’s 2007 thousand 620 307 ( 250 223 )* 215 98 95 !" # Further 93 Further expanding expanding our our leadership leadership position, position, $% 90 0.7% 0.7% share share gain gain & + 88 Source: IMS Nati
Slide 9: The most valuable generic pipeline
The most valuable generic pipeline U.S., February 5, 2009 (Teva + Barr)
Slide 10: Teva has the largest generic pipeline
Teva has the largest generic pipeline Number of ANDAs pending, U.S., February 5, 2009 201 other 123 119 >60 first-to-file , -. Source: Investor earnings call transcripts and company statements
Slide 11: As well as the broadest product portfolio
As well as the broadest product portfolio Number of products +90% Source: Investor earnings call transcripts and company statements
Slide 12: Teva's position in key European countries
Teva’s position in key European countries 2007 20081 UK Improved Mature markets Netherlands marketshare “Tenders” Germany Italy Emerging markets France2 “Latin Europe” Spain Hungary Emerging markets Poland “CEE” Czech #1 In top 3 In top 10 Not in top 10 1 includes Barr, 2 top 3 in certain months
Slide 13: With strong branded operations
With 4 strong branded operations Multiple Multiple Parkinson’s Parkinson’s Respiratory Respiratory Women’s Women’s sclerosis sclerosis health health Supports balanced business model Marketing/branding skills for branded generics Highly profitable business
Slide 14: Copaxone is the MS therapy market leader
Copaxone® is the MS therapy market leader Global market share, value, % Note: based on company publications
Slide 15: Successful M&A track record
Successful M&A track record Index, 1995 = 100 IVAX (global) Barr (global) Bentley Dorom (Spain) 0 Sales Sales Net Net (Italy) income CoGenesys income (technology) CAGR CAGR CAGR CAGR RDL 0 22% 22% 31% 31% (India – API) 0 Honeywell Sicor (Italy) (global) 0 APS Berk Novopharm Bayer Classics (UK) (Cana
Slide 16: 2008 at a Glance
Introducing Teva 2008 at a Glance The future of generics Outlook
Slide 17: Strong 2008 results
Strong 2008 results 2007 2008* Change Sales 9,408 11,085 +18% $m Net income 1,952 2,374 +22% $m EPS 2.38 2.86 +20% $ * Net income and EPS are non-GAAP results
Slide 18: Sources of sales growth
Sources of sales growth $ million 2007 2008 Change North America - pharma 5,162 6,139 Europe - pharma 2,465 2,782 International - pharma 1,223 1,561 Total - pharma 8,847 10,482 API (external sales) 561 603 Total 9,408 11,085
Slide 19: Cash generation
Cash generation 969 806 746 710 Cash from operations 545 Net asset purchase Dividends distributed Free cash flow Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 $410m $366m $4,387m acquisitions acquisitions acquisitions
Slide 20: The future of Generics
Introducing Teva 2008 in a glance The future of Generics Outlook
Slide 21: Key growth drivers – macro conditions
Key growth drivers – macro conditions Worldwide demographics – aging population U.S. and West Europe – controlling healthcare costs Growing pressure to reduce costs by payers (governments, insurance companies) Emerging markets – economic growth Healthcare costs grow faster than GDP Appearance of “Fi
Slide 22: Generics growth driven by patent expirations
Generics growth driven by patent expirations Sales by patent expiration, $ bn / / / Source 2008-2012: IMS Health, MIDAS, MAT Jun 2008; IMS Therapy Forecaster, Jun 2008; IMS Market Insights Oct 2008 Source 2013-2015: Company estimates (includes Biologics)
Slide 23: Biogenerics – the opportunity
Biogenerics – the opportunity World-wide sales of biologics by patent expiration year, $bn Number of molecules 1 3 4 2 3 9 7 16 45 Source: Mckinsey & Company
Slide 24: Outlook
Introducing Teva 2008 at a glance The future of generics Outlook
Slide 25: Outlook: 2009 sales and EPS guidance
Outlook Sales $14.1bn - $14.6bn 2009 EPS* $3.20 - $3.40 *Non-GAAP
Slide 26: Initial projections: 2010 EPS growth
Outlook Initial projections: 2010 EPS growth of 30%-35% over 2009 projected EPS Major sources of growth include: •Take back of Copaxone® in North America •Venlafaxine (Effexor XR®) launch •Paragraph IV Opportunities •Realization of greater Barr synergies
Slide 27: Summary
Summary Strong ending to a better than forecasted year Positive outlook for 2009 and 2010 Foreign exchange impact Very strong cash generation Solid balance sheet, leverage better than planned Barr integration – better than originally anticipated Macro & external conditions support continued growth o
Slide 28: Thank you!
Thank you!
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