Sumitomo Pharma Co.ltd. · TSE:4506
Sumitomo Pharma Co.ltd — Sepracor — Merger or Acquisition (November 2009)
39 slides from Sumitomo Pharma Co.ltd's merger presentation, Nov 12, 2009
Slide 1: Sepracor Inc. Company Overview – November 12, 2009
Sepracor Inc. Company Overview – November 12, 2009 Adrian Adams President and CEO Page 1
Slide 2: Disclaimer Regarding Forward-looking Statements
2 Disclaimer Regarding Forward-looking Statements The statements made in this presentation material are forward-looking statements based on management’s assumptions and beliefs in light of information available up to the day of announcement, and involve both known and unknown risks and uncertainties
Slide 3: Overview of Sepracor Inc.
3 Overview of Sepracor Inc. • Fully integrated, research-based pharmaceutical company • Current therapeutic focus: Respiratory & CNS • Primary care and specialty marketing with drug discovery and development infrastructure • R&D pipeline: early-, mid-, and late-stage assets • Six products available
Slide 4: Sepracor Inc. – 25 Years of Evolution
4 Sepracor Inc. – 25 Years of Evolution acquires Sepracor Sepracor launches launched in U.S. CLARINEX® launched in U.S. ALLEGRA® launched launched by launched in U.S. by HMRI Schering- launched in U.S. Sepracor Plough est. 1984 1989 1991 1996 1999 2000 2002 2005 2006 2007 2008 2009 STEDESA™ Oryx Iso
Slide 5: Sepracor: Historical Financial Performance
5 Sepracor: Historical Financial Performance Total Revenue Growth 2000 - 2008 GAAP Net Income (Loss) 2000 - 2008 1400 600 $1292.3 500 $480.0 1200 $1183.1 400 1000 300 CAGR 2000 – Millions of Dollars Millions of Dollars 2008: 40.5% 200 800 $148.8 100 600 0 $373 -100 400 -200 $236 200 $(218.2) $85.2 -
Slide 6: Sepracor Employee Base
6 Sepracor Employee Base Approximately 2,100 Employees Canadian Sales Operations 1319 92 General & 236 Administrative Research & 252 Development Commercial 162
Slide 7: Sepracor's Product Portfolio by Contribution
7 Sepracor’s Product Portfolio by Contribution 2008 Product Revenues: ~$1.3 B $1,400.0 $77.0 M $11.1 M $1,200.0 $16.8 M $57.3 M $74.2 M $14.6 M ROYALTIES Millions of Dollars $1,000.0 SPI ALVESCO® $800.0 $441.0 M OMNARIS® BROVANA® $600.0 XOPENEX HFA® $400.0 XOPENEX® IS 773 LUNESTA® 592 $600.3 M $200.
Slide 8: Corporate Priorities and Opportunities
8 Corporate Priorities and Opportunities Corporate / Commercial • Drive strong product portfolio performance with continued focus on efficiencies, effectiveness and profitability • Generate efficiencies from corporate restructuring to continue to achieve cost savings and build foundation for the fut
Slide 9: Commercial: Overview of 2009 Priorities
9 Commercial: Overview of 2009 Priorities Achieve Financial Targets • Meet or exceed top- and bottom-line targets • Launch new direct-to-consumer campaigns for LUNESTA® and OMNARIS® Nasal Spray Focus on Profitability • Realize efficiencies from new commercial model implemented early 2009 • Focus on
Slide 10: Sepracor's Commercial Model
10 Sepracor’s Commercial Model Context • Recent trends and macroeconomic environment impacting pharmaceutical market • Reach and frequency model with multiple sales forces is losing momentum • Gain operating leverage with new model that supports current and future portfolio • Foundation of changes b
Slide 11: Product Ownership With Optimized Resources
11 Product Ownership With Optimized Resources Primary Care Specialty Focus Home Health Care & Specialty Physician (PCP) Focus Focus 43,000 Targets 19,000 Targets 94,000 Targets 295 Sales Representatives 142 Sales Representatives 755 Sales Representatives XOPENEX® / ALVESCO® BROVANA® Sales Representa
Slide 12: Improvement in Field Productivity Metrics
12 Improvement in Field Productivity Metrics Total Prescriptions (TRxs) / Net Sales / Representative 2,400 Representative $250,000 Number of TRxs / Representative +31% Net Sales / Representative 1,800 +37% $200,000 $150,000 1,200 $100,000 600 $50,000 0 $0 July - Sept 2008 July - Sept 2009 July - Sep
Slide 13: LUNESTA: Overview of Market and Product
13 LUNESTA®: Overview of Market and Product Therapeutic Overview • 30-40% of adults have some symptoms of insomnia within a year • 15% of adults have chronic insomnia • Chronic insomnia is more prevalent with age and among women U.S. Market Opportunity • Insomnia market size: $4B+, 5% annual growth
Slide 14: LUNESTA Performance
14 LUNESTA® Performance LUNESTA Net Revenue and Audited Performance Update Promotional Spending ($M) • Qtr3 ‘09 revenues of $127.3 M and 180 YTD revenues of $418.9 M 160 • Overall insomnia market growth in single digits, driven principally by 140 generic zolpidem 120 Promotional Priorities Dollars i
Slide 15: XOPENEX: Overview of Market and Products
15 XOPENEX®: Overview of Market and Products Therapeutic Overview • Current asthma prevalence is 28 M people • 71% of patients are diagnosed U.S. Market Opportunity • Current short-acting beta-agonist (SABA) market (moving average total Sept ‘09): $2.5B • Annual Total Prescription growth rate: 4.4%
Slide 16: XOPENEX - Stable Franchise Performance
16 XOPENEX® - Stable Franchise Performance XOPENEX Inhalation Solution Revs. Performance Update 89 XOPENEX® Inhalation Solution XOPENEX I.S. Revenues $M 87 $86.1 • Qtr3 ‘09 revenues of $86.1 M and YTD revenues of 85 $294.2 M +10.5% 83 • Increased contribution margins 81 XOPENEX HFA® 79 $77.9 77 • Qt
Slide 17: BROVANA: Overview of Market and Product
17 BROVANA®: Overview of Market and Product Therapeutic Overview • ~ 12 M people are diagnosed with chronic obstructive pulmonary disease (COPD) • Risk factors include smoking, pollution and existing lung impairment U.S. Market Opportunity • Large Total Prescription (TRx) market for COPD: 22 M TRxs
Slide 18: BROVANA Volume Continues to Build
18 BROVANA® Volume Continues to Build BROVANA Retail and Non-Retail Unit Demand BROVANA Performance 5,000 Retail • Q3 ‘09 revenues of $18.5 M and 4,500 Non-Retail YTD revenues of $56.2 M 4,000 + 27% • Volume continues to build • Unrestricted access at 93% of 3,500 managed care lives 3,000 • Improved
Slide 19: OMNARIS: Overview of Market and Product
19 OMNARIS®: Overview of Market and Product Therapeutic Overview • Allergic Rhinitis (AR) affects 65 M people • Most patients suffer from Perennial Allergic Rhinitis (PAR) or both PAR and Seasonal Allergic Rhinitis (SAR) • Strong association between AR and other respiratory disorders U.S. Market Opp
Slide 20: OMNARIS Nasal Spray - Continued Strong Uptake
20 OMNARIS® Nasal Spray - Continued Strong Uptake Monthly OMNARIS Total Prescription (TRx) Volume 50 and Share 1.4% Performance Update • Qtr3 ‘09 revenues of $7.3 M and YTD DTC Launch 45 revenues of $22.3 M 1.2% Launched New • Total Prescription volume and share 40 Commercial Model growth strong thr
Slide 21: ALVESCO: Overview of Market and Products
21 ALVESCO®: Overview of Market and Products Therapeutic Overview • Current asthma prevalence 28 M people • 13 M people suffer from asthma attacks annually • Therapy goals include reducing impairment by maintaining lung function U.S. Market Opportunity • Current inhaled corticosteroid market (ICS) (
Slide 22: ALVESCO Volume Continues to Build
22 ALVESCO® Volume Continues to Build Weekly ALVESCO Total Prescription Performance Update 3 (TRx) Volume and Share 1.2% • Positive prescription share and volume growth during asthma Launch of $0 Co-pay program “low” season 2.5 1.0% • Broader primary care launch began Launch New in Qtr1, positive im
Slide 23: Sepracor's Product Patent Portfolio
23 Sepracor’s Product Patent Portfolio • XOPENEX® Inhalation Solution* – August 20, 2012** • XOPENEX HFA® – last patent expires in 2024 • LUNESTA® – Qtr3 2014; assumes patent-term and pediatric extensions • BROVANA® – last patent expires 2021 • OMNARIS® Nasal Spray – composition of matter patent exp
Slide 24: Research and Development Update
24 Research and Development Update R&D Priorities • Successfully execute high-priority R&D initiatives to strengthen pipeline and enhance current franchises Late-Stage Research and Development Assets • STEDESA™ (eslicarbazepine acetate) for adjunctive treatment of epilepsy under FDA review • OMNARIS
Slide 25: STEDESA Market Opportunity
25 STEDESA™ Market Opportunity Market Target Profile • Approx. 2.7 M people in U.S. with epilepsy • Efficacy • U.S. epilepsy treatment mkt. est. $3.5 B • Clear dose-response correlation Anti-Epileptic Drugs* – Total • Marked, sustained seizure reduction Prescriptions (TRxs) • Tolerability/Safety 86
Slide 26: Eslicarbazepine Acetate Clinical Development Program
26 Eslicarbazepine Acetate Clinical Development Program Phase III Combined Analysis Results from One-Year Open-Label Extension Study • 3 Phase III studies with common BIA- BIA- BIA- design testing doses of 400 mg, 800 2093- 2093- 2093- mg and 1200 mg once-daily 301 302 303 throughout a 12-week maint
Slide 27: Eslicarbazepine Acetate Phase III Results
27 Eslicarbazepine Acetate Phase III Results Mean Relative (%) Reduction From Mean Quality of Life in Epilepsy Combined Analysis Inventory-31 (QOLIE-31) After 1- Year Treatment or Discontinuation Placebo 400 mg 800 mg 1200 mg N=286 N=195 N=282 N=272 0% 61 p<0.0001 -5% 60 -10% 59 p<0.0001 58 -15% 57
Slide 28: OMNARIS HFA for Allergic Rhinitis
28 OMNARIS® HFA for Allergic Rhinitis OMNARIS HFA nasal Opportunity aerosol • Intranasal corticosteroid market approximately $2 B • Approx. 20% of patients discontinue use of nasal medications due to tolerability issues • Prior to chlorofluorocarbon (CFC) phase-out, intranasal steroid aerosols repre
Slide 29: OMNARIS HFA Phase III SAR Study Results
29 OMNARIS® HFA Phase III SAR Study Results Study Design • Evaluated safety and efficacy of 80 mcg and 160 mcg of ciclesonide vs. placebo in patients with seasonal allergic rhinitis (SAR) • 707 adults and adolescents randomized over two weeks Results • Primary efficacy endpoint: change from baseline
Slide 30: Corporate Development & Licensing (CD&L) Update
30 Corporate Development & Licensing (CD&L) Update CD&L Priorities Aggressively pursue corporate development and licensing opportunities that enhance the portfolio and complement DSP’s strategic direction Key Sepracor Partners Out-licensed In-licensed STEDESA™ / Ipratropim Note: 3M is a technology p
Slide 31: Current Priorities and Recent CD&L Activity (24 Months)
31 Current Priorities and Recent CD&L Activity (24 Months) Opportunities Assessed on a Non-Confidential and Detailed Basis: 281* CDAs Executed/Detailed Evaluations of Confidential Data: 104 Due Diligences Conducted: 34 Current Priorities Terms Exchanged or Bid Provided: 23 • Remain aggressive in pur
Slide 32: Financial Highlights Qtr3 and YTD 2009
32 Financial Highlights Qtr3 and YTD 2009 Financial Update Third Quarter 2009 Financial Results January-September Year-to-Date 2009 Financial Highlights
Slide 33: 2009 Continued Strong Non-GAAP Earnings Momentum
33 2009 Continued Strong Non-GAAP Earnings Momentum GAAP EPS Qtr3 ‘08 vs. Qtr3 ‘09 GAAP EPS YTD ‘08 vs. YTD ‘09 $0.40 $4.00 $0.35 $3.50 $3.43 $0.30 $3.00 $0.25 $0.25 $2.50 Dollars Dollars $0.20 $2.00 $0.15 $1.50 $0.09 $0.95 $0.10 $1.00 $0.05 $0.50 $0.00 $0.00 Q3 2008 Q3 2009 YTD 2008 YTD 2009 Non-GA
Slide 34: YTD Jan.-Sept. 30, 2009 Summary of Results (Non-GAAP)
34 Year-To-Date (YTD) Jan.-Sept. 30, 2009 Summary of Results (Non-GAAP) YTD 2009 YTD 2008 $ Millions % of Rev. $ Millions % of Rev. Revenue 927 923 Margin 843 91% 835 90% R&D 161 17% 178 19% SG&A 435 47% 590 64% Net Income 246 27% 82 9% Diluted EPS $2.16 $0.70 Shares Outstanding 114 M 116 M
Slide 35: Strong Balance Sheet Improvement
35 Strong Balance Sheet Improvement $663 M No No Debt Debt by by Year- Year- $73 M due 2008 $73 M End End $76 M 2009 2009 Gain = $8.2 M $134 M $442 M due 2024 Gain = $4.3 M $48 M w/put in 2009 Gain = $4.3 M $46 M Gain = $0.8 M $186 M $148 M due 2010 $100 M $- Q308 Q3 08 Dec08 Dec 08 Dec08 Dec 08 Mar
Slide 36: 2009 Financial Guidance Summary – Non-GAAP
36 2009 Financial Guidance Summary – Non-GAAP* Revised 2009 $ in millions 2008 Actual Results Original 2009 Guidance except per share amounts Guidance (as of July 24, 2009) Revenue $1,292 $1,150 - $1,250 $1,225 - $1,275 R&D $237 $210 $210 SG&A $759 $600 $600 EPS (fully diluted) $1.63 $2.10 - $2.70 $
Slide 37: Delivering on Our 2009 Corporate Objectives
37 Delivering on Our 2009 Corporate Objectives Drive strong top-line product portfolio performance • Continued steady product performance Generate efficiencies from corporate restructuring • Achieving cost-savings from our new commercial model Advanced two high-priority R&D assets • Submitted STEDES
Slide 38: Key Benefits of DSP's Acquisition of Sepracor
38 Key Benefits of DSP’s Acquisition of Sepracor Establishes international platform • Access to fully integrated U.S. and Canadian pharmaceutical platforms with a successful, experienced management team and talented employee base • Extensive R&D organization with expertise in complementary therapeut
Slide 39: Questions and Answers
Questions and Answers Page 39