Swedish Orphan Biovitrum Ab · OMXSTO:SOBI
Swedish Orphan Biovitrum Ab — Q3 2011 Earnings Presentation
26 slides from Swedish Orphan Biovitrum Ab's earnings presentation, Oct 20, 2011
Slide 1: Interim Report January – September 2011
Interim Report January – September 2011 Stockholm, 20 October 2011 Geoffrey McDonough (CEO) and Lars Sandström (CFO) We provide valuable medicines to patients with rare diseases
Slide 2: Disclaimer
Disclaimer In order to utilize the ‘Safe Harbor’ provisions of the United States Private Securities Litigation Reform Act of 1995, Swedish Orphan Biovitrum is providing the following cautionary statement. This presentation contains forward-looking statements with respect to the financial condition,
Slide 3: Agenda
Agenda •Introduction Geoffrey McDonough, CEO •Financial Review Lars Sandström, CFO •Business Review Geoffrey McDonough, CEO •Q & A 3
Slide 4: Key Points
Key Points •Sobi is an integrated, innovative biopharmaceutical company •We have a unique position in the rare disease space •Our focus today: 1. Growth – reaching the potential of our key products 2. Profitability – operating efficiency and discipline 3. Building value for our future – executing on
Slide 5: Financial Review
Financial Review Lars Sandström, CFO We provide valuable medicines to patients with rare diseases
Slide 6: Financial performance YTD
Financial performance YTD 1 500 1 000 Total revenues SEK M EBITA before non-recurring 500 items 0 2010 YTD 2011 YTD 6
Slide 7: Revenues by quarter
Revenues by quarter 600 •Total revenues SEK 447 M 500 (444) • Currency effects SEK -13 M 400 • Discontinued products SEK -26 M SEK M 300 •Product sales and Co- 200 promotion +8% y/y adjusted 100 for currency effects and discontinued products 0 Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Product sales & Co-promoti
Slide 8: Revenues Q3-11 vs. Q3-10
Revenues Q3-11 vs. Q3-10 500 +26 +15 400 -26 -13 300 SEK M 200 100 0 Q3 2010 Discontinued Currency Growth from Growth from Q3 2011 products product other revenues portfolio 8
Slide 9: EBITA before non-recurring items by quarter
EBITA before non-recurring items by quarter 250 50% 200 40% •EBITA before non-recurring items SEK 3.0 M (65.6) 150 30% SEK M 100 20% •EBITA margin 0.7% (12.8) 50 10% 0 0% Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 EBITA before non-recurring items % of sales 9
Slide 10: EBITA Q3-11 vs. Q3-10
EBITA Q3-11 vs. Q3-10 + Volume + Lower operating expenses EBITA SEK 3 M (66) − Gross margin 52% (64%) − Scheduled plant maintenance − Currency − Royalty 10
Slide 11: Cash flow before financing (excl. acquisitions) by quarter
Cash flow before financing (excl. acquisitions) by quarter 50 • Cash flow before financing (excl. 0 acquisitions) SEK -3.2 M (+3.4) SEK M -50 • Working capital SEK -13.7 M (-32.4) -100 • Net investments SEK -28.7 (-5.0) -150 Q4-10 Q1-11 Q3-10 Q2-11 Q3-11 Cash flow before financing (excl. acq.) Where
Slide 12: Total inventory value by quarter
Total inventory value by quarter 1 200 Tech Transfer Kineret 1 000 800 SEK M 600 400 200 0 Q4-08 Q3-11 Q1-09 Q2-09 Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 12
Slide 13: Net debt by quarter
Net debt by quarter 1 500 30% •Net debt SEK 613 M (1,131) 1 000 20% SEK M •Net debt to equity 12% 500 10% 0 0% Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Net debt Net debt / Equity 13
Slide 14: Outlook 2011
Outlook 2011 •Reiterate revenue growth of 1-5 % and lower gross margin compared to last year •Expect to evaluate possible write-down of balance sheet items in Q4 of up to SEK 350 M • Inventory positions • Intangible assets • Other items including finalization of restructuring announced in Q1 2011 14
Slide 15: Business Overview
Business Overview Geoffrey McDonough, CEO We provide valuable medicines to patients with rare diseases
Slide 16: Sales Driven by a Diverse Portfolio
Sales Driven by a Diverse Portfolio 600 500 400 SEK M 300 200 100 0 Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 54 Products Product sales & Co-promotion Other revenues 16
Slide 17: Portfolio Dominated by Three Lines
Portfolio Dominated by Three Lines Revenues YTD Other products ReFacto 26% 37% Orfadin 16% Kineret 21% 17
Slide 18: Revenues YTD growth @ CER
Revenues YTD growth @ CER 600 +29% 500 400 +8% +1% +6% SEK M 300 200 100 0 Kineret Orfadin ReFacto Other products excl. discontinued 2010 2011 @ CER 18
Slide 19: Kineret Potential in RA Segment (Europe example)
Kineret Potential in RA Segment (Europe example) Total RA patients 4.7 million •Role of Kineret in RA is re- (approx. 1% of population) emerging as an option for Diagnosed patients 3 million patients (approx. 60% of total) Treated with biologics 820 000 •We are gaining momentum Eligible Kineret as w
Slide 20: Growth Drivers for Orfadin
Growth Drivers for Orfadin 100 •Potential in existing markets as awareness of newborn 75 screening and adolescent compliance increases SEK M 50 •New markets 25 • First commercial sales in Russia • Working to build our presence in the Middle East region 0 Q1-10 Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Orf
Slide 21: Revenues YTD by region
Revenues* YTD by region Kineret and Orfadin Other products RoW RoW 4% 1% North America 12% Europe 25% North America 36% Europe 52% Nordic 62% Nordic 8% * Product sales and Co-promotion 21
Slide 22: Revenues YTD growth @ CER
Revenues* YTD growth @ CER 500 +4% 400 +13% +6% 300 SEK M 200 100 +5% 0 Europe Nordic excl. discontinued North America RoW products 2010 2011 @ CER * Product sales and Co-promotion 22
Slide 23: Research & Development
Research & Development Indication Product/ Partner Phase I Phase II Phase III Reg. phase Project Hemophilia A rFVIIIFc Biogen Idec Hemophilia B rFIXFc Biogen Idec Prevent growth Kiobrina restriction in premature infants 23
Slide 24: Communications Calendar
Communications Calendar 29 November 2011 • Capital Markets Day – Stockholm 9-12 January 2012 • JP Morgan Presentation – San Francisco 23 February 2012 • Q4 Earnings Call – Stockholm For details please contact: Asa Stenqvist – asa.stenqvist@sobi.com 24
Slide 25: Summary
Summary •Sobi is an integrated, innovative biopharmaceutical company •We have a unique position in the rare disease space •Our focus today: 1. Growth – reaching the potential of our key products 2. Profitability – operating efficiency and discipline 3. Building value for our future – executing on ou
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