ScinoPharm Taiwan, Ltd. · TWSE:1789
ScinoPharm Taiwan — Investor Presentation (January 2013)
35 slides from ScinoPharm Taiwan's investor presentation, January 2013
Slide 1: ScinoPharm Management Presentation
ScinoPharm Management Presentation TWSE 1789 January, 2013 1
Slide 2: Disclaimer
Disclaimer This material has been prepared by ScinoPharm Taiwan, Ltd. (“ScinoPharm”). Any opinions expressed in this material are subject to change without notice as a result of using different assumptions. ScinoPharm is under no obligation to update or keep current the information contained herein.
Slide 3: Table of Content
Table of Content Overview of ScinoPharm Financial & Operating Results Opportunities & Strategies • Sustaining World Leadership on Oncological APIs • Japan Market Development - Oncological APIs • China Angles • Double A Strategy “API + ANDA” New Drug Development – via JV investment Business Outlook 3
Slide 4: Overview of ScinoPharm
Overview of ScinoPharm - An API + ANDA Company Active Pharmaceutical Ingredients Abbreviated New Drug Application 4
Slide 5: Background
Background Established in 1997 in Taiwan by founders from Syntex, listed on TWSE, current market cap ~ US$1.5 billion Major shareholders include Uni-President Group, Government’s Development Fund, Taiwan Sugar, etc. Facility & organization designed & built in Taiwan by experienced Syntex team,
Slide 6: Business Overview
Business Overview Maintain dominant position in Specialty APIs for generic market. Strong customer base (300+) in US/EU/Japan, some through Indian generics. Aggressively developing Japan and China markets Developed ~60 generic APIs with 21 launched. Filed 43 DMFs in US (631 DMFs WW), leader in s
Slide 7: World Class Facilities
World Class Facilities Taiwan China 6.6 hectares of land, 330K sq. ft. facilities 6.6 hectares of land with ~250M3 reactor with >200M3 reactor volume volume 8 of 18 production lines equipped with 1st phase completed in Q1, 2012 high potency capabilities for cytotoxics 2nd phase to be complet
Slide 8: Financial & Operating Results
Financial & Operating Results 8
Slide 9: Quarterly P&L - Consolidated
Quarterly P&L - Consolidated 4Q,’12 3Q,’12 4Q,’11 In NT$ million, except for EPS QoQ YoY (Unaudited) (Reviewed) (Audited) Net Sales 1,404 1,284 1,130 9% 24% Gross Profit 684 640 597 7% 15% Gross margin 49% 50% 53% Operating Expenses (291) (257) (251) 13% 16% Operating Income 393 383 346 3% 14% Opera
Slide 10: FY P&L - Consolidated
FY P&L - Consolidated 2012 2011 In NT$ million, except for EPS YoY (Unaudited) (Audited) Net Sales 4,573 3,954 16% Gross Profit 2,285 1,984 15% Gross margin 50% 50% Operating Expenses (1,026) (851) 21% Operating Income 1,259 1,133 11% Operating margin 28% 29% Other Rev.(Exp.) 113 2 5,867% Net Income
Slide 11: Balance Sheet- Consolidated
Balance Sheet- Consolidated 2012/12/31 2011/12/31 In NT$ million (Unaudited) (Audited) Cash and Cash Equivalents 3,035 29% 3,294 35% Accounts Receivable 841 8% 844 9% Inventories 1,870 18% 1,465 15% Long-Term Investments 150 1% 172 2% Fixed Assets 3,790 37% 3,227 34% Total Assets 10,315 100% 9,480 1
Slide 12: Cash Flows- Consolidated
Cash Flows- Consolidated 2012 2011 In NT$ million (Unaudited) (Audited) Cash and cash equivalents at 3,294 1,908 beginning of period Cash flows from operating activities 974 1,294 CAPEX (872) (761) Short-term borrowings 264 - Cash dividends (631) (61) Cash injection - 957 Others 6 (43) Cash and cash
Slide 13: 2012 Sales Growth
2012 Sales Growth (NT$,000) 13
Slide 14: Production Optimization
Production Optimization Efficiency Optimized Production batches increased 16.5%, from 1,553 batches in 2011 to 1,810 in 2012 Yield Rate Optimized Yield rate improved from 91% in 2011 to 96% in 2012 Outsourcing Outsourcing’s contribution was equivalent to 1.5 production lines 14
Slide 15: Sales by Business
Sales by Business 2011 2012 CRO CMO 2% 14% CRO CMO 2% 26% Generic Generic 84% 72% 15
Slide 16: Sales by Indications
Sales by Indications 2011 2012 Others Others 13% 11% CNS Oncology Oncology CNS 25% 50% 62% 39% 16
Slide 17: Sales by Region
Sales by Region 2011 2012 Rest of AU & NZ ROW Rest of AU & NZ ROW Asia 5% 0% Asia 6% 0% 7% 9% India 10% India US & CAN US & CAN 17% 38% 51% EU EU 27% 30% 17
Slide 18: ScinoPharm's Opportunities and Strategies
ScinoPharm’s Opportunities and Strategies 18
Slide 19: Opportunities & Strategies
Opportunities & Strategies Sustaining World Leadership of Oncological APIs Japan Market Development Meeting Oncological API Demand China Angles Supply Chain Management Generic Market Demand – Oncological, Antiviral, Diabetes CMO for MNCs Double A Strategy “API + ANDA” Focusing on O
Slide 20: World Leader of Oncological APIs
World Leader of Oncological APIs 25 oncological APIs in the portfolio with 10 launched Continue to add 2-4 new oncological APIs each year in research pipeline Market research/new product selection parallel with key customers including Teva, Sandoz, Actavis, Hospira, etc. Major market penetra
Slide 21: ScinoPharm - Oncological API Leader
ScinoPharm - Oncological API Leader 21
Slide 22: Japan API Market
Japan API Market Second (to US) largest market with significant growth potential Government sets goal to increase generic penetration from 19% to 30% by 2012 including urging brand companies to launch generics Generic APIs depends on imports mostly, especially for oncological injectables Sci
Slide 23: China Angles - Supply Chain
China Angles - Supply Chain Control sourcing of key intermediates for Taiwan Plant to free up more API capacity for existing demand in US, EU and Japan Site transfer of larger volume APIs from Taiwan for cost competitiveness Development and supply of new larger volume APIs for generics and NCE
Slide 24: China Angles - API Market
China Angles - API Market Government’s 12th five-year plan sets a goal for pharma to grow at a CAGR of 20% Require 100% compliance of the latest GMP Encourage companies to apply for int’l ANDAs which require world class APIs Generic oncological products dominated by 3 players with in-house A
Slide 25: China Angles - CMO for MNCs
China Angles - CMO for MNCs Strong outsourcing needs from multinationals for development & manufacturing, for speed and cost Lack of qualified suppliers meeting MNC’s Technical, Quality, GMP, and EHS standards None with experience in supplying multiple NCEs to US & EU on exclusive basis Scin
Slide 26: Double A Strategy - API + ANDA
Double A Strategy - API + ANDA Drug Product Supply for Difficult APIs Difficult to Make APIs Some Oncological APIs & All New Peptides Injectable Drug Products – In-house facility being built Certain APIs will be sold only via Drug Products Maintain “B to B” Business Model Strategic All
Slide 27: New Drug Development - via JV investment
New Drug Development - via JV investment 27
Slide 28: Investment Summary
Investment Summary JV partner: Foresee Pharmaceuticals, Inc. Founded in 2004 by a group of Taiwanese American experts, owning patents & know-hows in “controlled release drug delivery system” for small molecule, peptide, protein new drugs Current product portfolio under development include inje
Slide 29: Investment Summary
Investment Summary JV structure ScinoPharm will be the exclusive supplier of the peptide APIs for the JV as well as investing US$3.6MM in the JV. Foresee will transfer all related product patents & know- hows as well as investing cash into the JV. ScinoPharm will obtain 15% shareholding and a bo
Slide 30: Prostate Cancer Market
Prostate Cancer Market Prostate cancer is one of the most common cancers among men and it’s the 2nd most deadliest cancer among American males More than 2 million American males are diagnosed of prostate cancer and the population is growing at more than 240,000 patients per year 2011 global ma
Slide 31: Strategic Values of JV to ScinoPharm
Strategic Values of JV to ScinoPharm Establish and accumulate experiences in New Drug formulation, to support long-term growth Secured the rights of providing Leuprolide API and contract injectable formulation services for future products, realizing the “Double A” strategy Enjoy the possible i
Slide 32: Business Outlook
Business Outlook 32
Slide 33: 2013 Product Launch Plan
2013 Product Launch Plan Brand API Region Indications Marketer Regional Sales WW Sales MDS, Azacitidine US Pharmion US$331.3MM* US$729.7MM* Anti-neoplastic MDS, Decitabine US MGI Pharma US$238.0MM* US$249.1MM* Anti-neoplastic Docetaxel Anhydrous, JP Anti-neoplastic Sanofi Aventis US$236.9NM** US$2,0
Slide 34: Outlook
Outlook Sustain Leadership in Oncological APIs Continue to launch and develop oncological injectable APIs & others with high technological barriers including Peptides Japanese Market Penetration Expand strategic partnerships with major pharma Establish Presences in China Develop API business t
Slide 35: Brand Quality with Asian Advantages
Confidential Brand Quality with Asian Advantages www.scinopharm.com 35
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