Orion Oyj Class A · OMXHEX:ORNAV
Orion Oyj Class A — H1 2018 Earnings Presentation
31 slides from Orion Oyj Class A's earnings presentation, Jul 18, 2018
Slide 1: Half-Year Financial Report 1−6/2018
Orion Half-Year Financial Report 1−6/2018
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements which involve risks and uncertainty factors. These statements are not based on historical facts but relate to the Company’s future activities and performance. They include statements about future strategies and anticipated benefits of
Slide 3: Continuing to build the future
Continuing to build the future 1 Profitability was good, and profit margin for continuing operations exceeded financial 3 Sales of Proprietary Products were at level with comparative period. Challenging operating target. Strong cash flow. Net environment, tougher price sales and operating profit for
Slide 4: Key figures 1−6/2018 (continuing operations)
Key figures 1−6/2018 (continuing operations) Net sales Operating profit Operating profit Cash flow per share margin before financial items** 493 140 28% 1.75 MEUR (526) MEUR (159) (30%) EUR (0.40) -6% -12% +334% **) Cash flow per share before financial items for continuing and discontinued operation
Slide 5: Development of net sales and operating profit (continuing operations)
Development of net sales and operating profit (continuing operations) Net sales, EUR million Operating profit, EUR million (excl. the sale of Orion Diagnostica) 526 13 159 15 13 7 3 8 8 8 493 2 1 140 24 19 19 19 (1) Excluding sales of biosimilars (1) Product sales without change in margins (2) Chang
Slide 6: The profit impact of the sale of Orion Diagnostica closed on 30 April 2018
The profit impact of the sale of Orion Diagnostica closed on 30 April 2018 Capital gain +128 MEUR Pension gain +5 MEUR Administrative costs of the transaction -1 MEUR MEUR Half-Year Financial Report 1–6/2018 © Orion Corporation 18 July 2018 6 6
Slide 7: Geographical breakdown and development of net sales
Geographical breakdown and development of net sales 1−6/2018 1−6/2017 1−6/2018 EUR million 17% -5% 31% 180 -6% 160 6% 140 120 +2% -10% 100 17 % 80 30% 16% 60 -21% 40 Finland Scandinavia 20 Other Europe 0 Finland Scandinavia Other North Other North America Europe America markets Other markets Half-Ye
Slide 8: Net sales by business division
Net sales by business division EUR million 1−6/2018 -9% 300 5% 2% 254 250 232 +1% 8% 200 186 188 38% 150 -6% 100 -8% -50% 47% 50 41 39 28 26 17 8 0 Proprietary Products Specialty Proprietary Animal Fermion Contract Specialty Products Products Products Health manufacturing Animal Health & other Fermi
Slide 9: Best-selling pharmaceuticals 1−6/2018
Best-selling pharmaceuticals 1−6/2018 Net sales Change vs . Indication (EUR million) 1−6/2017 1. Parkinson’s disease 60 + 4% 2. Asthma, COPD 44 +18% 3. Intensive care sedative 34 +1% 4. Acute heart failure 29 -1% Rheumatoid arthritis, inflammatory 5. Biosimilars bowel diseases, lymphoma 15 -47% 6. A
Slide 10: Proprietary Products
Proprietary Products
Slide 11: Proprietary Products
Proprietary Products Easyhaler Simdax ● Continued growth driven by ● Sales revived after the Q1 the budesonide-formoterol downswing to the level Easyhaler. with comparative period. ● Preparing for the launch of the salmeterol-fluticasone Easyhaler. Dexdor Parkinson’s drugs ● Sales continued to grow
Slide 12: Sales of Proprietary Products at comparison period’s level
Sales of Proprietary Products at comparison period’s level EUR million 1−6/2018 +4% 70 6% 6% 58 60 60 +18% 32% +1% 15% 50 44 -1% 40 37 34 34 30 29 30 -15% 20 18% 13 11 23% 10 Parkinson: Stalevo, Comtess & Comtan 0 Easyhaler Parkinson’s Easyhaler Dexdor Simdax Precedex Dexdor drugs family Simdax Prec
Slide 13: Increase in sales of Parkinson's drugs was due to timing of deliveries
Increase in sales of Parkinson's drugs was due to timing of deliveries Sales of Orion's branded Parkinson's drugs by Sales, EUR million market area (MAT3/2018) 60 50 3% 40 29% 36% 30 20 10 0 Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2 Europe 32% 2013 2014 2015 2016 2017 2018 Japan ROW 30 % Deliveries
Slide 14: Easyhaler product family is growing
Easyhaler product family is growing Sales, EUR million ● The product family sales grew by 25 18%, driven by budesonide-formoterol Easyhaler, which grew by 26%. 20 ● Budesonide-formoterol Easyhaler is sold in all key European markets. 15 – Orion's market share of the product varies: 10 in Sweden 38%,
Slide 15: Sales of Dexdor intensive care sedative continued to grow in most European markets
Sales of Dexdor intensive care sedative continued to grow in most European markets Sales, EUR million Total value of 20 the European sedatives 18 market: EUR 548 million 16 (+3%) 14 12% 12 10 12% 8 64% 6 4 2 11% 0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2013 2014 2015 2016 201
Slide 16: Specialty Products
Specialty Products GRION Building well-being
Slide 17: Specialty Products
Specialty Products ● Sales grew in Eastern Europe ● Sales of biosimilars decreased and Russia. due to the situation of tendering competitions, tightening competition and declined price level. ● In Finland, sales declined due to tightening price ● Biosilar offering to expand competition. with a third
Slide 18: Specialty Products: challenging operating environment and tightening price competition
Specialty Products: challenging operating environment and tightening price competition showed as a decrease in sales Development of net sales Net sales by market area Net sales by product EUR 1−6/2018 1−6/2018 million -7% 160 145 134 14% 6% 140 120 100 13% 58% 24% 70% -25% 80 +5% 60 47 35 30 31 15 %
Slide 19: Orion's sales declined in Finland due to changing operating environment
Orion's sales declined in Finland due to changing operating environment Human pharmaceuticals sales in Finland in 1−6/2018 Total sales of medicinal and Orion’s non-medicinal products sales in Finland 1,329 155 EUR million EUR million (1,215) (169) Market development Orion's development +9% -8% Tight
Slide 20: Orion remains strong in home market Finland
Orion remains strong in home market Finland Human pharmaceuticals market in Finland 1−6/2018 (medicinal and non-medicinal Human Self-care Prescription products) pharmaceuticals products in drugs in total pharmacy Orion's market EUR million channel 180 share 9% 155 Orion's market Orion's market 160 s
Slide 21: Fermion's new production plant operational in Hanko
Fermion's new production plant operational in Hanko – nearly 100% of production is exported ● Special expertise in demanding production of active pharmaceutical ingredients (APIs), e.g. extremely potent substances. ● The aim is to captively manufacture the APIs for Orion's in-house developed proprie
Slide 22: Research and development
Research and development
Slide 23: Clinical trials are progressing
Clinical trials are progressing ● ODM-201/darolutamide ● ODM-109/orally administered levosimendan for prostate cancer in collaboration for ALS: with Bayer: – First patients recruited for the REFALS trial. – ARAMIS progresses on schedule. – Orion conducts the Phase III trial on its own. The Phase III
Slide 24: Orion's key pharmaceutical development projects
Orion's key pharmaceutical development projects Project Indication Phase Registration Easyhaler® salmeterol-fluticasone Asthma, COPD Bioequivalence study Registration Easyhaler® tiotropium COPD Bioequivalence study Darolutamide (ODM-201) 1) Prostate cancer (nmCRPC) I II III Darolutamide (ODM-201) 1)
Slide 25: ODM-109: Oral levosimendan for ALS
ODM-109: Oral levosimendan for ALS ● First patients recruited in July ● The aim is to apply for marketing authorisation for the Phase III clinical trial (REFALS). in the US and Europe. ● By enhancing respiratory muscle function ● Levosimendan has been granted an Orphan Drug in ALS patients, orally a
Slide 26: Responsibility
Responsibility GRION Building well-being
Slide 27: Patient safety, ethical operations and responsible supply chain are the cornerstones of Orion's corporate responsibility
Patient safety, ethical operations and responsible supply chain are the Import cornerstones of Orion's corporate responsibility In 2017: ● 31% of the energy savings target set for 2025 was achieved. ● New water collection systems were introduced in production to minimise pharmaceutical residue emiss
Slide 28: Outlook
Outlook
Slide 29: Outlook for 2018
Outlook for 2018 Net sales Due to generic and price competition Orion estimates that in 2018 the net sales excluding Orion Diagnostica will be at the same level or slightly lower than in 2017 (net sales were EUR 1,034 million excluding Orion Diagnostica in 2017). Operating Orion continues persistent
Slide 30: Orion calendar
Orion calendar 2018 Interim Report 1−9/2018 24.10.2018 2019 Financial Statements Release 2018 6.2.2019 Annual General Meeting 26.3.2019 Interim Report 1−3/2019 25.4.2019 Half-Year Financial Report 1−6/2019 17.7.2019 Interim Report 1−9/2019 23.10.2019
Slide 31: Building well-being
Building well-being GRIoN Building well-being