Scinopharm Taiwan, Ltd. · TWSE:1789
Scinopharm Taiwan — Q1 2014 Earnings Presentation
32 slides from Scinopharm Taiwan's earnings presentation, May 9, 2014
Slide 1: ScinoPharm Management Presentation
ScinoPharm Management Presentation TWSE 1789 May 9, 2014 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 Drug Co-development w/Lee’s in China Product Launch Table Q&A 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 in 2011, current market cap ~ US$1.8Bn, ¼ of total market cap of TWSE biotech sector Major shareholders include Uni-President Group, Government’s Development Fund, Taiwan Sugar, etc. Facility & organization designed & bui
Slide 6: Business Overview
Business Overview ScinoPharm has established its leadership position in Oncology APIs and is integrating into formulation; running two GMP compliant facilities in Taiwan & China and building an injectable plant in Taiwan Developed 70+ generic APIs with 24 launched. Filed 47 DMFs in US (673 DMFs
Slide 7: Corporate Strategies
Corporate Strategies Sustain Leadership in Oncological APIs Continue to launch and develop oncological injectable APIs & others with high technological barriers, including Peptides Establish Presences in China Develop APIs and formulations to timely capture the generic business with strategic al
Slide 8: Performance Indicators
Performance Indicators FY2013 FY2013 Items Indices ScinoPharm Peers Avg.*1 Current Ratio 346% 294% Quick Ratio 194% 174% Financial Interest Cover. Ratio 17893% 118% Soundness Debt/Asset 16% 32% Op. Cashflow/CAPEX 92% 68% ROE 13.6% 3.5% ROA 11.7% 2.5% Profitability Operating Margin 27.5% 3.0% Net Mar
Slide 9: ScinoPharm Waste Water Treatment
ScinoPharm Waste Water Treatment Waste Water ScinoPharm in-house phase 1 & 2 treatment Equalization pH Adjustment Denitrification Bioreactor Ultrafiltration Tank Tank Tank Tank Membranes National Science-Park Effluent Permeate Rivers Standards WW facility Discharge Tank Compliant Tainan Science-Park
Slide 10: Stricter Self-inspection on Waste Water than Regulation
Stricter Self-inspection on Waste Water than Regulation Science-Park checks ScinoPharm’s effluent discharge weekly, while ScinoPharm checks its own effluent on COD (Chemical Oxygen Demand) twice and SS (Suspended Solids) once a day To ensure wastewater treatment facilities function well, ScinoPh
Slide 11: International Verifications on EHS
International Verifications on EHS Verified by “Responsible Care Approved by “SafeBridge” for Management System”, the only high potency API production, the pharma co. in Taiwan that passed 1st in Asia and among 11 US & EU all 6 categories API co.’s 11
Slide 12: ScinoPharm CSR results
ScinoPharm CSR results Social ScinoPharm Art Seminars, Welfare Baseball Camp, PC Welfare donations, Emergency Aids, Charitable Auctions Industry/Academia Lectures and plant tours for college students, Exchange Sponsoring discussion between industry & academia Sustainability Environmental-friendly fa
Slide 13: ScinoPharm CSR results (cont'd)
ScinoPharm CSR results (cont’d) Labor Compliance with labor laws, Non-discrimination Relations practice, Career development plans, Healthy activities Corporate High standard on corp. governance, Code of conduct, Governance Whistle-blowing hotline Info disclosure complied with TWSE regulations, Fair
Slide 14: Financial & Operating Results
Financial & Operating Results 14
Slide 15: Quarterly P&L - Consolidated
Quarterly P&L - Consolidated 1Q,’14 1Q,’13 In NT$ million, except for EPS YoY (Reviewed) (Reviewed) Net Sales 1,097 1,186 -7% Gross Profit 433 655 -34% Gross margin 40% 55% Operating Expenses (250) (267) -6% Operating Income 183 388 -53% Operating margin 17% 33% Other Rev.(Exp.) 2 19 -89% Net Income
Slide 16: Balance Sheet- Consolidated
Balance Sheet- Consolidated 2014/3/31 2013/3/31 In NT$ million (Reviewed) (Reviewed) Cash and Cash Equivalents 2,793 23% 3,411 31% Accounts Receivable 630 5% 599 5% Inventories 2,637 22% 2,226 20% Long-Term Investments 260 2% 168 2% Fixed Assets 4,434 37% 3,820 35% Total Assets 12,029 100% 11,037 10
Slide 17: Cash Flows- Consolidated
Cash Flows- Consolidated 1Q 2014 1Q 2013 In NT$ million (Reviewed) (Reviewed) Cash and cash equivalents at 2,289 3,035 beginning of period Cash flows from operating activities 492 506 CAPEX (372) (256) Short-term borrowings 380 128 Others 4 (2) Cash and cash equivalents at 2,793 3,411 end of period
Slide 18: Sales by Business
Sales by Business 2013 Q1 2014 Q1 CRO CRO <1% CMO CMO 5% 19% 20% Generic Generic 81% 75% 18
Slide 19: Sales by Indications
Sales by Indications 2013 Q1 2014 Q1 Others 3% Others 16% CNS 31% CNS Oncology Oncology 24% 60% 66% 19
Slide 20: Sales by Region
Sales by Region 2013 Q1 2014 Q1 Rest of Rest of AU & NZ ROW Asia AU & NZ ROW Asia India 8% 1% 1% <1% <1% 19% 8% India US & CAN US & 11% 41% EU CAN 27% 56% EU 28% 20
Slide 21: Formulation Co-development with Lee's Pharma in China
Formulation Co-development with Lee’s Pharma in China 21
Slide 22: Background on Lee's
Background on Lee’s ▪ Listed on HKSE (950.HK), Lee's Pharmaceutical Holdings Limited is a research & production integrated pharma company with over 20 years of operations in China market ▪ Lee’s enjoys strong capabilities in drug development, manufacturing, sales and marketing in China ▪ Lee’s launc
Slide 23: Multiple Drug Co-development with Lee's
Multiple Drug Co-development with Lee’s ▪ ScinoPharm provides comprehensive API portfolio, while Lee’s operates strong drug product marketing channels in China. A win-win solution for both parties ▪ ScinoPharm and Lee’s have signed collaboration contracts to explore China market for the following pr
Slide 24: Cooperation Scheme (1) Fondaparinux Sodium
Cooperation Scheme (1) Fondaparinux Sodium ▪ ScinoPharm Taiwan will provide API and formulation technology to Lee’s for production and sales in China exclusively ▪ Lee’s will be responsible for applying drug license from CFDA and sell drug product in China ▪ Profits will be shared by ScinoPharm & Le
Slide 25: Cooperation Flow Chart (1)
Cooperation Flow Chart (1) Fondaparinux Formulation Technology Transfer ScinoPharm Lee’s China Market Taiwan Successfully developed API Formulation production API and Formulation CFDA DL application Sales/Marketing in China Profit Sharing 25
Slide 26: Market Info: Fondaparinux Sodium
Market Info: Fondaparinux Sodium ▪ Fondaparinux is an anticoagulant that helps prevent the formation of blood clots caused by orthopedic surgery of the lower limbs ▪ Its market value in China estimated to exceed RMB500 million (US$ 80MM) in 2013 ▪ The chemical synthesis of this carbohydrate- based d
Slide 27: Cooperation Scheme (2) Travoprost & Bimatoprost
Cooperation Scheme (2) Travoprost & Bimatoprost ▪ The above two APIs will be manufactured by ScinoPharm Changshu and provided to Lee’s exclusively for FDF production ▪ Lee’s can only buy APIs from ScinoPharm and will apply drug licenses from CFDA for sales in China ▪ Profits will be shared by ScinoP
Slide 28: Cooperation Flow Chart (2)
Cooperation Flow Chart (2) Bimatoprost/ Travoprost API ScinoPharm Changshu Lee’s China Market Develop and Formulation Development produce API Apply DL from CFDA Formulation production Sales/Marketing in China Profit Sharing *Potential to trigger CFDA’s inspection at ScinoPharm Changshu 28
Slide 29: Market Info: Travoprost & Bimatoprost
Market Info: Travoprost & Bimatoprost ▪ These two new generation prostaglandin derivatives for glaucoma have shown good clinical results in IOP-lowering effect, which can effectively prevent disease deterioration. ~10 MM glaucoma patients are in China now ▪ Per Lee’s intelligence, the Chinese market
Slide 30: 2014 Product Launch Plan
2014 Product Launch Plan 30
Slide 31: 2014 Product Launch Plan
2014 Product Launch Plan Brand API Region Indications Regional Sales WW Sales Marketer MDS, Azacitidine US Celgene US$358MM* US$818 MM* Anti-cancer Dantrolene Malignant JHP Pharma- US US$20 MM* US$46 MM* (injectable) hyperthermia ceuticals MDS, AML Decitabine US Eisai US$250 MM* US$289 MM* Anti-canc
Slide 32: Brand Quality with Asian Advantages
Confidential Brand Quality with Asian Advantages www.scinopharm.com 32