Mayne Pharma Group Ltd. · ASX:MYX
Mayne Pharma — Mayne Group — UBS Global Life Sciences Conference (September 2004)
34 slides from Mayne Pharma's conference presentation, Sep 29, 2004
Slide 1: Mayne Group Limited
Mayne Group Limited UBS Global Life Sciences Conference New York, USA Mr Stuart James Group Managing Director and Chief Executive Officer 29 September 2004
Slide 2: Forward-Looking Statement
Forward-Looking Statement Comments will be made that are forward-looking statements for the purposes of the Private Securities Litigation Reform Act of 1995. We caution that these forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially fro
Slide 3: Agenda
Agenda Business overview Mayne Pharma Immediate priorities Outlook Note: $AU amounts converted to $US at $US 0.70/$AU 1.00 3
Slide 4: Business overview
Business overview 4
Slide 5: Healthcare positioning
Healthcare positioning Mayne Group Limited ASX listed: $US 1.8 billion market capitalisation 12,000 employees Pharmaceuticals Diagnostic Services Pharmacy Mayne Pharma: Pathology: Wholesale Distribution: Research, development #2 Australian market Leading wholesaler of manufacture and sale
Slide 6: Mayne has reshaped itself
Mayne has reshaped itself Portfolio pre-divestments* Portfolio post-divestments** Pharmacy Hospitals 16% 23% Pharma 30% Pharma EBITA 39% Logistics 8% Contribution Consumer 3% Diagnostics Pharmacy 39% 13% Consumer Diagnostics 6% 23% * Based on FY03 EBITA (Logistics EBITA to Dec 2002 annualised) ** Ba
Slide 7: Mayne’s business portfolio
Mayne’s business portfolio Focussed on high growth and return sectors in health Portfolio benefits – Diversification – risk reduction – Capital allocation – strong cash flow from Diagnostic Services and Pharmacy support Pharma growth Strong returns – each business is positioned to deliver retu
Slide 8: FY04 highlights
FY04 highlights NPAT (before significant items) up 80% Strong continuing EBIT growth 16.8% to $US 109.6 million Continuing NPAT (before significant items) up 70.2% to $US 56.7 million Net operating cash flows up 46.6% to $US 190.9 million Cash EPS* up 36.3% to 17.5 cents (US) Completion
Slide 9: Diagnostic Services positioning
Diagnostic Services positioning Pathology Diagnostic Imaging Medical Centres #2 Australian market #2 Australian market Australia wide network position position providing a strong Leading player in Qld, Investing in high referral base for Vic & WA modality technologies to pathology and imag
Slide 10: Diagnostic Services: solid growth
Diagnostic Services: solid growth Diagnostic Services Revenue Diagnostic Services EBITA 600 ($US million) 80 ($US million) 500 70 60 400 50 300 40 30 200 20 100 10 0 0 FY01 FY02 FY03 FY04 FY01 FY02 FY03 FY04 Pathology and Med Centres Imaging Pathology and Med Centres Imaging Note: $AU amounts conver
Slide 11: Pharmacy positioning
Pharmacy positioning Wholesale Distribution Hospital Distribution Retail Development Leading wholesaler of National distribution of Leading national brands ethical and over-the- hospital products and (Terry White Chemists® counter products to pharmaceuticals to and Chemmart®) and Australian re
Slide 12: Mayne Pharma
Mayne Pharma 12
Slide 13: Mayne Pharma snapshot
Mayne Pharma snapshot History Mayne acquired Faulding Faulding/DBL has more than 150 years in 2001 experience in pharmaceuticals Financials FY04 sales $US 351 million (5 year CAGR: 22%) FY04 EBITA margin 19.6% (5 year CAGR: 25%) People Employees 1,900 Places Geographic presence Direct: 20 countries,
Slide 14: Generics growth outperforming branded
Generics growth outperforming branded Total 8% 20% USA 10% 20% Canada 10% 17% UK 8% 38% Germany 5% 13% France 6% 35% Italy 4% 24% Spain* 11% 26% Japan 3% 2% % growth generics % growth branded * Retail only Source: IMS Health: MIDAS, MAT March 2004 14
Slide 15: A global business
A global business Wasserburg, Germany Manufacturing facility Aguadilla, Puerto Rico Manufacturing Boulder, USA facility Manufacturing facility (API processing) Direct presence Mulgrave, Australia Manufacturing facility Distribution arrangements (cytotoxic capabilities) Melbourne, Australia Head Offi
Slide 16: Pharma: well positioned
Pharma: well positioned EMEA Asia Pacific Americas Emerging Leader* Regional Leader Growing Presence 41% revenue 34% revenue 25% revenue • Market leader in generic • Clear market leader in • Emerging US business injectables in continental generic injectable pharma in • #2 generic hospital player Eur
Slide 17: Global generic coverage
Global generic coverage • 5 of our top 10 generic molecules registered across all three regions • Global platforms driving significant synergies and competitive market positions • Paclitaxel trifecta completed in 1H04, through Paxene® deal Paclitaxel • Vertically integrated with surety of supply and
Slide 18: An established track record of growth
An established track record of growth Revenue: CAGR 22% $US millions 500 400 300 455.0 200 322.1 350.6 298.4 246.9 100 156.3 0 FY00(1) FY01(1) FY02(2) FY03 FY04 FY05(3) Notes (financial year ending 30 June) (1) Based on FH Faulding & Co Limited (Faulding) financial statements (2) Based on Faulding m
Slide 19: An established track record of growth
An established track record of growth EBITA: CAGR 25% $US millions and Margin % 100 91 EBITA margin 21.0% 80 19.6% range: 17-20% 77 17.9% 18.3% 16.8% 60 40 67.8 68.7 54.5 20 41.5 28.0 0 FY00(1) FY01(1) FY02(2) FY03 FY04 FY05 (3) EBITA EBITA margin Notes (financial year ending 30 June) (1) Based on F
Slide 20: Global growth strategy
Global growth strategy Specialty Pharmaceuticals Focus: Proprietary, Branded Generics, Commodity Generics INTERNAL GEOGRAPHIC ACQUISITION DEVELOPMENT EXPANSION & IN-LICENSING GLOBAL MANUFACTURING CAPABILITIES TO ENSURE COMPETITIVE PRODUCT COSTS AND SURETY OF SUPPLY 20
Slide 21: Building our business
Building our business Increasing specialisation Established Proprietary Proprietary Branded Emerging Niche product products Branded Biogenerics products generics Biogenerics specialisation (ICEs) generics (ICEs) Evaluating Vertical Generic Generic integration/ Local “Complex” oncology Local “Complex
Slide 22: Building our business
Building our business Increasing specialisation Established Proprietary Proprietary Branded Emerging Niche product products Branded Biogenerics products generics Biogenerics specialisation (ICEs) generics (ICEs) Evaluating Vertical Generic Generic integration/ Local “Complex” oncology Local Wasserbu
Slide 23: Significant pipeline growth
Significant pipeline growth • Robust pipeline that has been significantly strengthened over the last 2 years • Total pipeline to 2011 has a local market value of $US9.4 billion Country launches and current Local Market Value* (LMV) at launch 2500 120 101 100 2000 Country Launches 80 LMV -USDm 1500 5
Slide 24: Product pipeline 2005 - 2011
Product pipeline 2005 - 2011 Local # of Market regional # of country Value2 Product pipeline approvals approvals ($USm) Internal development Americas 32 45 6,093 EMEA 22 200 1,911 Asia Pacific 10 10 45 64 255 8,049 In-licensing/acquisition1 Americas 10 11 840 EMEA 5 48 443 Asia Pacific 16 16 88 31 7
Slide 25: Key products
Key products Launch Product Market Date LMV ($US m) Carboplatin US Oct 04 780 Irinotecan Global FY04 – 09 750 Ondansetron Global FY06 – 07 685 Propofol US FY06* 540 Epirubicin Global FY05 – 07 250 Fluconazole mini-bag Global FY04 – 06 300 Desferrioxamine Global FY04 – 07 65 Source: IMS, Mayne Pharma
Slide 26: Recent 1st to market moves
Recent 1st to market moves 1st generic pamidronate Europe, Canada 2002 1st generic desferrioxamine Europe 2003 1st generic epirubicin Australia Propofol paragraph IV US Ondansetron paragraph IV US 1st generic paclitaxel Europe 2004 1st generic irinotecan Europe Launch of in-licensed products, Eligar
Slide 27: Geographic expansion
Geographic expansion Mayne Pharma has a proven geographic expansion strategy – Leverages Mayne’s global footprint in sales and marketing – Very successful but disciplined expansion into continental Europe in last 3-4 years is a prime example Mayne is continuing to roll-out this strategy in other
Slide 28: Acquisitions / in-licensing
Acquisitions / in-licensing Mayne’s internal development is supported by acquisition and in-licensing activities Unique global sales and distribution capabilities make Mayne an attractive partner – Recent example is licensing of Paxene® from Ivax Future acquisitions/in-licensing opportunities
Slide 29: Immediate priorities
Immediate priorities Pharma – Growth across geographies with enhanced (broader and deeper) product offering – Maximise value from acquisitions – Additional development activities under consideration: • Access to low cost R&D, manufacturing • Geographic expansion • Expand product base 29
Slide 30: Mayne Pharma: growth engine
Mayne Pharma: growth engine Global footprint with leading market positions around the world Strong track record with a substantial platform for growth: – Strong industry growth globally – Geographic diversity across the business – Deep in-house expertise – Deep and broad pipeline – People, facil
Slide 31: Outlook
Outlook 31
Slide 32: Outlook
Outlook PHARMA Pharma FY05 revenue growth – at least 30% Long-term pharma growth expectation – Revenue growth – 15-20% – EBITA margins – 17-20% MAYNE GROUP Mayne Group expected growth for FY05 – Full year EBIT growth of at least 10% against FY04 continuing business 32
Slide 33: Summary
Summary Corporate repositioning is complete Strong EBIT growth achieved Management focused on further operational improvement Mayne is positioned for growth in all its businesses due to: – Strong sector growth – Leading market positions – Deep in-house expertise 33
Slide 34: Mayne Group Limited
Mayne Group Limited UBS Global Life Sciences Conference New York, USA
Mayne Group — UBS Global Life Sciences Conference (September 2004) on 6ix