Recordati S.p.a. · MIL:REC
Recordati — Jefferies 2013 Global Healthcare Conference
26 slides from Recordati's conference presentation, Jun 5, 2013
Slide 1: A Specialty Pharmaceutical Group
A Specialty Pharmaceutical Group JEFFERIES 2013 GLOBAL HEALTHCARE CONFERENCE, NEW YORK, 5 JUNE 2013
Slide 2: A strategy of growth and geographical expansion
A strategy of growth and geographical expansion • A specialty pharmaceutical group (€ 828.3 m sales in 2012 and over 3,300 employees of which more than 1,700 field force) • R&D in the cardiovascular and urology fields and in treatments for rare diseases Profile • Marketing operations in the main Eur
Slide 3: Our products are sold in 135 countries
Our products are sold in 135 countries 20 Subsidiaries in 20 countries 39 Branches and other forms of territorial presence 76 Countries where Recordati products are sold (under license or exported) 3
Slide 4: A growing presence in Russia & CIS and in Poland. New sub in the US
A growing presence in Russia & CIS and in Poland. New sub in the US. Other international sales 18.2% (sales to licensees and exports) Italy 26.5% Other CEE 3.5% Other W. European countries 2.8% Spain 3.2% Portugal 3.3% France 12.5% U.S.A 0.9% Turkey 7.6% Russia and other CIS 10.4% Germany 7.7% Data:
Slide 5: A diversified product portfolio
A diversified product portfolio Orphan drugs 11.7% Other corporate products 6.1% Livazo 2.4% OTC 17.7% Urorec 4.2% Zanipress 5.8% Subsidiaries’ local product portfolios 34.8% Zanidip 13.0% Entact®/Elopram® 5% (escitalopram/citalopram) - Italy Tergynan® - Russia & CIS, France exp. 3% Pharmaceutical c
Slide 6: Core corporate products: Urorec (silodosin)
Core corporate products Urorec® (silodosin) • Highly selective α1A receptor antagonist indicated for the treatment of symptoms associated with benign prostatic hyperplasia (BPH). • Fast onset of action. High efficacy. Very good cardiovascular safety. • Launched in 20 markets: Belgium, Bulgaria, Cypr
Slide 7: Core corporate products: Livazo (pitavastatin)
Core corporate products Livazo® (pitavastatin) • Highly effective HMG-CoA reductase inhibitor indicated for the treatment of hypercholesterolaemia. • Thanks to its unique chemical structure Livazo® is a potent LDL-lowering drug with a consistent and progressive HDL-raising effect. (Atherosclerosis S
Slide 8: Core corporate products: Zanipress and Zanidip
Core corporate products Zanipress® (lercanidipine+enalapril) Zanidip® (lercanidipine) • Lercanidipine is a proprietary latest generation calcium channel blocker indicated for the treatment of hypertension. Enalapril is an ACE inhibitor indicated for the treatment of hypertension. • Sales of Zanidip®
Slide 9: Drugs for rare diseases: A worldwide business
Drugs for rare diseases A worldwide business Huge market potential: > 6,000 rare diseases identified for which treatments exist for only around 300. Progressive country introduction of rare disease plans and access to diagnostic tests will stimulate the market for orphan drugs. • Sales CAGR 15% sinc
Slide 10: Drugs for rare diseases
Drugs for rare diseases ADAGEN® (pegademase bovine), indicated in the treatment of SCID-ADA deficiency CARBAGLU® (carglumic acid), indicated in the treatment of hyperammonaemia due to NAGS deficiency and to the main organic acidemias COSMEGEN® (dactinomycin), used mainly in the treatment of three ra
Slide 11: A well balanced R&D pipeline
A well balanced R&D pipeline NAME ORIGINATOR INDICATION DEVELOPMENT STATUS Approved in EU CARBAGLU® Recordati Organic acidemias Phase III in U.S. ZANIPRESS* Recordati Essential hypertension Filed in EU Nymox (NX-1207) Phase III in US (Nymox) and REC 0482 Benign prostatic hyperplasia (BPH) EU (Record
Slide 12: A well balanced R&D pipeline (cont'd)
A well balanced R&D pipeline (cont’d) • CARBAGLU® (carglumic acid), currently approved for the treatment of hyperammonaemia due to NAGS deficiency, approved in Europe and in phase III clinical development in the USA for additional indications in organic acidemias. • ZANIPRESS® (lercanidipine+enalapr
Slide 13: A well balanced R&D pipeline (cont'd)
A well balanced R&D pipeline (cont’d) • CYSTADROPS® (cysteamine chlorhydrate) are eye drops developed for “ocular manifestations of cystinosis” which cannot be controlled by orally administered cysteamine, specially formulated in a patient-friendly gel form. • GRASPA® is L-asparaginase encapsulated
Slide 14: First quarter 2013 highlights
First quarter 2013 highlights • Revenue € 244.6 million, up 11.4%. • EBITDA € 61.3 million or 25.1% of sales, up 13.5% • Operating income (EBIT) € 52.6 million or 21.5% of sales, up 10.5% • Net income € 37.8 million or 15.4% of sales, up 11.8% • Successful conclusion of the acquisition of a portfoli
Slide 15: Composition of revenue
Composition of revenue New markets and new products drive growth (million Euro) 1Q 2013 1Q 2012 Change % Italy 62.6 62.6 0.0 France 29.4 32.2 (8.6) Russia and other CIS countries 24.6 13.0 89.7 Germany 18.2 16.1 12.7 Turkey 17.8 15.6 14.2 U.S.A. 10.1 1.2 n.s. Portugal 7.8 8.6 (9.6) Spain 7.5 8.9 (15
Slide 16: Main product sales
Main product sales Corporate products including orphan drugs now account for 44,6% of revenue (million Euro) 1Q 2013 1Q 2012 Change % Zanidip® (lercanidipine) 31.8 31.3 1.4 Zanipress® (lercanidipine+enalapril) 14.1 12.4 13.5 Urorec® (silodosin) 10.4 7.6 36.7 Livazo® (pitavastatin) 5.9 3.1 88.8 Other
Slide 17: First quarter 2013 results
First quarter 2013 results Significant sales and earnings growth (million Euro) 1Q 2013 1Q 2012 Change % Revenue 244.6 219.6 11.4 Gross Profit 159.2 141.6 12.5 as % of revenue 65.1 64.5 SG&A Expenses 87.1 77.3 12.7 as % of revenue 35.6 35.2 R&D Expenses 18.5 15.7 17.4 as % of revenue 7.6 7.2 Other I
Slide 18: Financial position and Shareholders' equity
Financial position and Shareholders’ equity (million Euro) 31 Mar 2013 31 Dec 2012 Change Cash and short-term financial 50.7 38.4 12.3 investments Bank overdrafts and short-term loans (107.1) (56.0) (51.1) Loans – due within one year (8.2) (8.1) (0.1) Loans – due after one year (127.8) (127.7) (0.1)
Slide 19: Strategy going forward: Primary care business
Strategy going forward Key actions and directions • Continue to grow organically and through acquisitions of companies and/or products. Primary care business: The complexity of group structure requires different strategies area by area. • Western European markets: • Primary care strongly impacted by
Slide 20: Strategy going forward: Rare diseases and OTC business
Strategy going forward Rare diseases business: A worldwide business to generate sales of around € 140 million by 2015 • Geographical expansion of current portfolio with direct presence to be established in selected markets • Consolidation of the newly acquired US business • Continued search for new
Slide 21: Evolution of geographies
Evolution of geographies Direct sales in European emerging and new markets to increase to one third of total sales Other int'l sales; Other int'l sales; 19% Italy; 27% 17% Italy; 20% USA; 1% USA; 5% Russia, CEE; 10% France; 13% Russia, CEE; 19% Turkey; 8% Other W. France; 15% Germany; 9% Europe; 3%
Slide 22: Evolution of product portfolio
Evolution of product portfolio Growth of core products and drugs for rare diseases Pharmaceutical Other revenue; Pharmaceutical chemicals; 4% 2% chemicals; 3% Zanidip; 8% Other revenue; 2% Zanidip; 14% Zanipress; 7% Zanipress; 6% Urorec; 5% Urorec; 4% Other local Livazo; 4% Livazo; 2% products; 36%
Slide 23: Strategy going forward: Financial and investment strategy
Strategy going forward Financial and investment strategy • Cash flow, after payment of dividends, to be entirely re-invested for the group’s growth • Dividend pay-out ratio of 50% of consolidated net income to be maintained • Net debt of around one time EBITDA included in the plan • Bolt-on acquisit
Slide 24: Financial projections
Financial projections 2013 targets and plan for 2015 2012 2013 2015 (million Euro) Actual Targets Plan Revenue 828.3 ̴ 930 1,025 -1,075 Operating income 167.0 ̴ 190 210 - 220 (EBIT) Net Income 118.5 ̴132 140 - 150 24
Slide 25: The Recordati share
The Recordati share The Recordati share (ticker REC, Reuters RECI.MI, Bloomberg REC IM, ISIN IT 0003828271) has been listed on the Italian Stock Exchange since 1984. It belongs to the FTSE IT Mid Cap and FTSE IT Health Care indexes. Share capital consists of 209,125,156 ordinary (common) shares with
Slide 26: Company declarations, disclaimers and profile
Company declarations, disclaimers and profile DECLARATION BY THE MANAGER RESPONSIBLE FOR PREPARING THE COMPANY’S FINANCIAL REPORTS The manager responsible for preparing the company’s financial reports Fritz Squindo declares, pursuant to paragraph 2 of Article 154-bis of the Consolidated Law on Finan
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