Hikma Pharmaceuticals Plc · LSE:HIK
Hikma Pharmaceuticals — Investor Day (November 2024)
34 slides from Hikma Pharmaceuticals's investor day presentation, Nov 14, 2024
Slide 1: Hikma MENA Meet the Management
Better health. Within reach. Every day. Hikma MENA Meet the Management November 14 2024
Slide 2: Disclaimer
Disclaimer Save to the extent required by law, neither Hikma Pharmaceuticals PLC nor any of its affiliates (Hikma), nor any other party, is under any duty to update or inform you of any changes to such information. In particular, it should be noted that the financial information relating to Hikma co
Slide 3: Agenda
Agenda Introduction to Hikma in MENA The MENA pharmaceutical market Branded strategy Business Development MENA Injectables Wrap-up and ambition
Slide 4: Agenda
Agenda Introduction to Hikma in MENA The MENA pharmaceutical market Branded strategy Business Development MENA Injectables Wrap-up and ambition 4
Slide 5: Our positioning in MENA differentiates us as a Group
Our positioning in MENA differentiates us as a Group and we are delivering significant current and future growth A unique business with Strategic initiatives to drive global expertise applied continued momentum to meet local needs • Aligning portfolio to local needs, • Strong market position in MENA
Slide 6: Our story of over 45 years of expansive growth and innovation MENA
Our story of over 45 years of expansive growth and innovation MENA 1978 Hikma founded in Jordan in 1978, by the late Samih Increased Tunisia presence through IAB stake Expanded partnership Opening of first oral oncology Darwazah to supply the Middle East Market with Takeda for key TAs plant in Alger
Slide 7: Our MENA presence today
Our MENA presence today – strong and extensive local presence We have a commercial presence in 17 MENA markets… …with 3 Tunisia Jordan 5 2 20 manufacturing plants Morocco 2 5 R&D centres Algeria 4 1 Egypt 3 1 3 1 KSA across the region… …and 5,700 employees, including over 2,000 in sales and marketin
Slide 8: A diversified offering in the region providing a strong platform for growth
A diversified offering in the region providing a strong platform for growth Europe $217m 25% of 2023 21% of 2023 Group Core Group Revenue operating profit1 …and this is made up MENA accounts of our Branded business… MENA $909m for 32% of 2023 Group Revenue… …and MENA Injectables 7% 2023 revenue Grou
Slide 9: Agenda
Agenda Introduction to Hikma in MENA The MENA pharmaceutical market Branded strategy Business Development MENA Injectables Wrap-up and ambition 9
Slide 10: Healthcare trends in MENA
Healthcare trends in MENA A growing market, with strong dynamics for generics MENA pharma market outlook (by value) 1 USD Billions (2020 – 2028) MENA pharmaceutical The market is expected $47.7bn market currently to grow at a 4-year estimated at CAGR of 4.8% $39.5bn 9.5 $39.5 bn 4.8% 1 3.7% $34.1bn
Slide 11: Healthcare trends in MENA: ageing population and chronic diseases
Healthcare trends in MENA Growth is underpinned by an ageing population and increasing prevalence of chronic diseases Non-communicable diseases in MENA are expected Ageing population is driving this NCD growth: to grow at a higher rate than the global forecast MENA population breakdown by age group
Slide 12: Hikma's market position
Hikma’s market position By aligning our portfolio to these trends, we have grown to become the 2nd largest pharma company in MENA MENA top-10 pharmaceutical companies by sales Our rank in the oral market ⇌ +3 from 2020 +1 from 2020 Systemic Antibacterials 1 +2 from 2020 +14 from 2020 Anti-Ulcerants
Slide 13: Strong track record of growth and margin expansion in our Branded business
Strong track record of growth and margin expansion in our Branded business Core revenue ($m) 100.0% Core operating profit ($m) 90.0% 5-year Revenue Core operating margin (%) 714 CAGR 691 80.0% 669 613 70.0% +6% 583 542 60.0% 5-year core 50.0% operating profit CAGR 40.0% +8% 21.6% 22.1% 21.1% 23.8% 3
Slide 14: Agenda
Agenda Introduction to Hikma in MENA The MENA pharmaceutical market Branded strategy Business Development MENA Injectables Wrap-up and ambition 14
Slide 15: Our strategic priorities to drive growth
Our strategic priorities to drive growth Our ambition is to become the largest pharma company and evolve to a holistic healthcare company Goals: Our objective is to become the leading pharma company in MENA driven by our strategic expansion into treating chronic diseases, with a primary emphasis on
Slide 16: 1. Robust Pipeline
1. Robust Pipeline A. To be tailored to local needs B. To be first to market C. To be differentiated Chronic and oncology As the prevalence of chronic illnesses and 44% cancer increases, we are 56% shifting our portfolio to 59% 63% address these needs 41% 37% Acute 2016 2024 2029 16
Slide 17: 1. Robust Pipeline
1. Robust Pipeline A. To be tailored to local needs B. To be first to market C. To be differentiated We have a solid track record of launching first-to-market and first generic products in MENA. Our pipeline reflects the evolving healthcare needs in MENA. The below table shows a snapshot of the ther
Slide 18: 1. Robust Pipeline
1. Robust Pipeline A. To be tailored to local needs B. To be first to market C. To be differentiated Our pathway to launching first to market and first generics API Phase Leverage Hikma Chemicals to develop difficult to source API Development Phase 1st to market Improve R&D efficiency / 1st generic
Slide 19: 1. Robust Pipeline
1. Robust Pipeline A. To be tailored to local needs B. To be first to market C. To be differentiated We have a multi-phase approach to regulatory matters: • Exclusivity and Intellectual Property • Different business models across our markets • Dossier preparation (CTD) Pricing – We are constantly re
Slide 20: 1. Robust Pipeline
1. Robust Pipeline A. To be tailored to local needs B. To be first to market C. To be differentiated How we differentiate Examples of differentiation in action Pipeline projects by category Control of Nitrosamine (Mutagenic) Impurity: Technical Know-how • Metformin (implemented in Dapa-Met) complexi
Slide 21: 2. Operational Efficiency
2. Operational Efficiency Enhancing and expanding our capabilities while ensuring high quality and efficient operations Our centralised global engineering team enables knowledge sharing and operational optimisation across the Group’s sites Grow our high-quality manufacturing capabilities Cost discip
Slide 22: 3. Customer Centricity
3. Customer Centricity A. Drive new changes in key stakeholders’ roles B. Move towards more focused business while advancing omnichannel approaches models and processes The MENA Engage by moving towards more interactive platforms Medical teams to support new market entries Healthcare through hands-o
Slide 23: Agenda
Agenda Introduction to Hikma in MENA The MENA pharmaceutical market Branded strategy Business Development MENA Injectables Wrap-up and ambition 23
Slide 24: Business development
Business development Leveraging our partner of choice status to bring increasing innovation across Branded and MENA Injectables Current Medium term Longer term Highly Guardant Health Rakuten Medical differentiated – diagnostics – portfolio partnership technology1 partnership Remsima SC Toripalimab H
Slide 25: Agenda
Agenda Introduction to Hikma in MENA The MENA pharmaceutical market Branded strategy Business Development MENA Injectables Wrap-up and ambition 25
Slide 26: MENA Injectables Introduction
MENA Injectables Introduction A growth business, leveraging our global capabilities to be a key local supplier of sterile injectables MENA Injectables as % of total Injectables Delivering double digit revenue growth supported by growing portfolio and biosimilars MENA 10% CAGR accounts $195m MENA for
Slide 27: Uniquely positioned for differentiation in MENA
Uniquely positioned for differentiation in MENA We have two growth engines – generics and our innovative and precision medicine portfolio Providing a differentiated generic MENA Injectables: Bringing innovative products injectable portfolio in MENA Two complementary growth drivers to MENA • Differen
Slide 28: Strategy in action: Oncology across the cancer continuum
Strategy in action: Oncology – Hikma is present across the cancer continuum Patient experience symptoms Early disease Clinical examination PCP* for and imaging Patient is Biopsy is Differential Biomarkers general PCP* for screening check up referred to Oncologist Performed diagnosis testing Adjuvant
Slide 29: Strategic priorities by product category
Strategic priorities by product category Our journey to become a top hospital player in MENA Ambition: To become a top hospital player in MENA, supporting patients across their journey to Better Health Foundation portfolio strategic priorities: Differentiated portfolio strategic priorities: Precisio
Slide 30: Agenda
Agenda Introduction to Hikma in MENA The MENA pharmaceutical market Branded strategy Business Development MENA Injectables Wrap-up and ambition 30
Slide 31: Our strategy – leveraging our global expertise and local knowledge
Our strategy – leveraging our global expertise and local knowledge to deliver on the healthcare needs across MENA Our strategy sets us up for continued success and supports our ambition to become the largest pharma company in MENA Evolve into a Expand Consistent holistic Portfolio and differentiatio
Slide 32: Branded business growth and margin expansion; five-year expectations
Strong track record of growth and margin expansion Over the next five in our Branded business years we expect: 100.0% Core revenue ($m) Core operating profit ($m) 90.0% Core operating margin (%) 714 5-year Revenue Revenue to 691 669 80.0% CAGR grow at a 613 583 70.0% +6% CAGR 542 60.0% 5-year core o
Slide 33: MENA Injectables revenue growth and five-year expectations
Strong track record of revenue growth Over the next five in our MENA Injectables business years we expect: $195m 5-year Revenue Revenue to $181m $179m CAGR grow at a $160m $146m +10% Low double- $120m digit CAGR3 1 2 2018 2019 2020 2021 2022 2023 3 Assumes constant currency 1 2021 revenue includes $
Slide 34: Thank you.
h. Thank you.