Scinopharm Taiwan, Ltd. · TWSE:1789
Scinopharm Taiwan — Q2 2013 Earnings Presentation
31 slides from Scinopharm Taiwan's earnings presentation, Aug 7, 2013
Slide 1: ScinoPharm Management Presentation
ScinoPharm Management Presentation TWSE 1789 August 7, 2013 1
Slide 2: Disclaimer
Disclaimer This material has been prepared by ScinoPharm Taiwan, Ltd. (“ScinoPharm”). Any opinions expressed in this material are subject to change without notice as a result of using different assumptions. ScinoPharm is under no obligation to update or keep current the information contained herein.
Slide 3: Table of Content
Table of Content Overview of ScinoPharm Financial & Operating Results Oncology Market Trend Progress Made in Japanese Market Business Outlook 3
Slide 4: Overview of ScinoPharm
Overview of ScinoPharm - An API + ANDA Company Active Pharmaceutical Ingredients Abbreviated New Drug Application 4
Slide 5: Background
Background Established in 1997 in Taiwan by founders from Syntex, listed on TWSE, current market cap ~ US$1.8 billion Major shareholders include Uni-President Group, Government’s Development Fund, Taiwan Sugar, etc. Facility & organization designed & built in Taiwan by experienced Syntex team, recei
Slide 6: Business Overview
Business Overview Maintain dominant position in Specialty APIs for generic market. Strong customer base (320+) in US/EU/Japan, some through Indian generics. Aggressively developing Japan and China markets Developed ~60 generic APIs with 22 launched. Filed 44 DMFs in US (647 DMFs WW), leader in suppl
Slide 7: World Class Facilities
World Class Facilities Taiwan (SPT) China (SPC) 6.6 hectares of land, 330K sq. ft. facilities 6.6 hectares of land with ~250M3 reactor with >200M3 reactor volume volume 8 of 18 production lines equipped with 1st phase completed in Q1, 2012 high potency capabilities for cytotoxics 2nd phase to be com
Slide 8: Financial & Operating Results
Financial & Operating Results 8
Slide 9: Quarterly P&L - Consolidated
Quarterly P&L - Consolidated 2Q,’13 1Q,’13 2Q,’12 In NT$ million, except for EPS QoQ YoY (Reviewed) (Reviewed) (Reviewed) Net Sales 1,339 1,186 913 13% 47% Gross Profit 724 655 437 11% 66% Gross margin 54% 55% 48% Operating Expenses (267) (267) (238) 0% 12% Operating Income 457 388 199 18% 130% Oper
Slide 10: Half Year P&L - Consolidated
Half Year P&L - Consolidated 1H,’13 1H,’12 In NT$ million, except for EPS YoY (Reviewed) (Reviewed) Net Sales 2,524 1,884 34% Gross Profit 1,379 961 43% Gross margin 55% 51% Operating Expenses (534) (478) 12% Operating Income 845 483 75% Operating margin 33% 26% Other Rev.(Exp.) 30 7 329% Net Income
Slide 11: Balance Sheet- Consolidated
Balance Sheet- Consolidated 2013/6/30 2012/6/30 In NT$ million (Reviewed) (Reviewed) Cash and Cash Equivalents 3,379 29% 2,972 30% Accounts Receivable 870 7% 732 7% Inventories 2,288 20% 2,022 21% Long-Term Investments 273 2% 168 2% Fixed Assets 3,897 33% 3,080 31% Total Assets 11,702 100% 9,849 100
Slide 12: Cash Flows- Consolidated
Cash Flows- Consolidated 1H 2013 1H 2012 In NT$ million (Reviewed) (Reviewed) Cash and cash equivalents at 3,035 3,294 beginning of period Cash flows from operating activities 456 61 CAPEX (506) (378) Long-term Investment (107) - Short-term borrowings 491 - Others 10 (5) Cash and cash equivalents at
Slide 13: Sales by Business
Sales by Business 1H 2012 1H 2013 CRO CMO 2% 5% CMO 30% Generic Generic 70% 93% CRO <1% 13
Slide 14: Sales by Indications
Sales by Indications 1H 2012 1H 2013 Others 5% Others 11% CNS CNS 36% Oncology 25% Oncology 59% 64% 14
Slide 15: Sales by Region
Sales by Region 1H 2012 1H 2013 Rest of AU & NZ ROW Rest of AU & NZ ROW Asia 4% <1% Asia 4% <1% 10% 14% India India 12% 13% US & CAN US & CAN 39% 50% EU EU 20% 34% 15
Slide 16: Oncology Market Trend
Oncology Market Trend 16
Slide 17: Key Facts about Oncology Market
Key Facts about Oncology Market Cancer is the leading cause of death, accounting for 7.6 million deaths worldwide (around 13% of all deaths) in 2008 Deaths from cancer worldwide are projected to keep rising to over 13.1 million in 2030 The global oncology market reached US$62.2 billion in 2011 (CAGR
Slide 18: Market Value by Therapeutics
Market Value by Therapeutics Oncology drug market value to reach $75-80bn in 2015 Leading Therapy Classes in 2015 Source: The Global Use of Medicines: Outlook Through 2016, IMS, Jul 2012 18
Slide 19: Major Classes of Oncology Drugs
Major Classes of Oncology Drugs Chemotherapies Targeted therapies Kill cancer cells by affecting Destruct cells by blocking cell division growth signaling pathways developed Alkylating agents Monoclonal antibodies by SPT Antitumor antibiotics Angiogenesis inhibitors planning ( including mAbs, SMEs)
Slide 20: Progress Made in Japanese Market
Progress Made in Japanese Market 20
Slide 21: Continued API Growth in Asia
Continued API Growth in Asia Asia is the global third largest regional market for APIs only next to North America and Europe ：CAGR ~ 9.1% 2005-2011： ：CAGR ~ 8.5% (vs. 7.4% WW) 2011-2017： API Market Share in Asia by Country in 2011 Others 14% Korea 8% India Japan 6% 51% China 21% Source: Active Pharm
Slide 22: Japanese Generics Landscape
Japanese Generics Landscape The second largest market next to the US, presenting a significant growth potential in generics Japanese government aims to lift the generic volume penetration rate from current 25% to 60% by 2018 Most domestic demand of generic APIs depends on imports, especially for onc
Slide 23: Target Top Tier Japanese Firms
Target Top Tier Japanese Firms Top Generic Companies 2012 Sales (Million Yen) Nichiiko 77,740 ScinoPharm’s main Teva 70,000 Sawai 67,600 target customers Towa 48,720 include tier 1 generic Nipro 42,550 and new drug co.’s. Nippon Kayaku 28,510 12 out of the top 14 Daito 27,100 drug companies have Shi
Slide 24: Growing Customer Base in Japan
Growing Customer Base in Japan Our Japanese customers will be over 10 by 2013 Target to be a vital API supplier to the generic and brand name drug companies in Japan within 3-5 years 2013 2014 Year 2006 2007 2008 2009 2010 2011 2012 (E) (E) # of accumulated customer for R&D 4 7 9 14 19 21 24 26 28+
Slide 25: Booming Market Presence in Japan
Booming Market Presence in Japan As the first Taiwanese API ScinoPharm’s Sales Growth in Japan company qualified by PMDA, Unit: USD M ScinoPharm aims to capitalize on its qualified APIs and formulation business 10 10 9 8 、Docetaxel 、 With Anastrozole、 7 6 Exemestane、 、Gemcitabine HCl、 、 5 5.64 5.43
Slide 26: ScinoPharm Japan Office
ScinoPharm Japan Office Strategic Goals JDMF registration and management API regulatory support for customers importing dosages to Japan Contacts for Japanese agents and customers Market research and intelligence collection Business support for future formulation products 26
Slide 27: Business Outlook
Business Outlook 27
Slide 28: 2013 Product Launch Plan
2013 Product Launch Plan Brand API Region Indications Regional Sales WW Sales Marketer MDS, Azacitidine US Pharmion US$331.3MM* US$729.7MM* Anti-neoplastic MDS, Decitabine US MGI Pharma US$238.0MM* US$249.1MM* Anti-neoplastic Docetaxel JP Anti-neoplastic Sanofi Aventis US$236.9NM** US$2,051MM* Anhyd
Slide 29: CRAM Business Updates
CRAM Business Updates One CMO new drug has obtained another FDA approval to treat HAP (Hospital Acquired Pneumonia), in addition to its original skin infection indication ScinoPharm Changshu has formed a strategic alliance with Sundia MediTech Co. (a Shanghai- based CRO) to combine their NCE R&D cap
Slide 30: Outlook
Outlook Sustain Leadership in Oncological APIs Continue to launch and develop oncological injectable APIs & others with high technological barriers including Peptides Establish Presences in China Develop APIs and formulations to timely capture the generic business with strategic alliance and CRAMs f
Slide 31: Brand Quality with Asian Advantages
Confidential Brand Quality with Asian Advantages www.scinopharm.com 31