Ipsen SA · EURONEXT:IPN
Ipsen SA — FY2006 Earnings Presentation
35 slides from Ipsen SA's earnings presentation, Mar 19, 2007
Slide 1: Full year 2006 results
Full year 2006 results March 19, 2007
Slide 2: Disclaimer
Disclaimer This presentation includes only summary information and does not purport to be comprehensive. Forward-looking statements, targets and estimates contained herein are for illustrative purposes only and are based on management’s current views and assumptions. Such statements involve known an
Slide 3: An innovation driven International Specialty Pharma Group
An innovation driven International Specialty Pharma Group > 100 countries. c.4,000 employees, founded in 1929. A world-class Group 2006 Sales: €862 m. 2006 operating income: €187 m Market capitalisation (as of March 1, 2007): ~€2.8 bn A longstanding A diversified presence 47% of 2005 Group s
Slide 4: A market leader in our Targeted Therapeutic Areas
A market leader in our Targeted Therapeutic Areas GnRH analogue - 3 months formulation – longer Sustained Release Formulations (“SRF”) under development Decapeptyl® n°1 or n°2 in most Ipsen markets Long lasting relationships with target audiences and EU urology organisations Main competitors
Slide 5: 2006 results highlights
2006 results highlights Jean-Luc Bélingard Chairman & Chief Executive Officer
Slide 6: Financial objectives exceeded
Financial objectives exceeded 2006 objectives 2006 actuals Sales 6.5 to 7.5% growth +6.8% In line Reported 21.5 to 22.0% (1) In line operating 21.7% (in % of sales) margin Recurring 23.7% operating (excluding the negative impact of a non-recurring payment of €8.4 million Exceeded margin to Inamed an
Slide 7: A good performance despite a challenging environment
A good performance despite a challenging environment Drug sales Volumes of drugs sold +7.6% +10.2% Specialist care product sales Sales outside major Western European countries +13.4% +19.3% 2006/2005 growth rates 6
Slide 8: A significantly reshaped profile
A significantly reshaped profile February 2007: partnership with Galderma Medicis decides to Febuxostat Agreement with focus on North America Filing with EMEA Medicis for Reloxin® in North America Dysport® approval Ipsen and Tercica in aesthetic use in partnership Somatuline® Germany Autogel® Somatu
Slide 9: A rigorous execution of our strategy
A rigorous execution of our strategy Mission Statement To be a worldwide best-in-class provider of innovative drugs, addressing unmet medical needs in its targeted therapeutic areas Strategic Priorities GROW top-line and OPTIMISE returns of GLOBALISE through profits in the Targeted primary car
Slide 10: 2006 results highlights
2006 results highlights Claire Giraut Chief Financial Officer
Slide 11: 2006 P&L
2006 P&L 2005 in million euros Pro forma 2006 % change Sales 807.1 861.7 +6.8% Other revenue 80.7 83.6 +3.5% Other revenue Total revenue 887.9 945.3 +6.5% - Lower Kogenate® royalties Cost of goods sold (171.0) (181.4) +6.0% - Medicis / Roche Milestone Research and Dvelopment expenses (169.0) (178.3)
Slide 12: Sales evolution
Sales evolution 2005 and 2006 sales by therapeutic area 2005 and 2006 sales by geographical area +6.8% 861.7 +6.8% 861.7 807.1 807.1 +13.4% 443.8 391.2 +0.8% 551.7 547.3 In million euros +18.5% 377.6 +2.4% 386.6 184.8 155.9 +20.5% 103.9 125.2 -18.2% 38.3 31,3 2005 2006 2005 2006 Targeted Therapeutic
Slide 13: Other revenues evolution
Other revenues evolution +3.5% Royalties received 80.7 83.5 Kogenate® licence, (€38.7 million in 2006, down 7.8% year-on-year vs. €42.0 million in 2005): Q1 14.6 +47.9% 21.7 2005 had been particularly high due to the carry- over of some 2004 royalties into 2005 In million euros (4.4)% 21.1 Mil
Slide 14: Cost of goods sold evolution
Cost of goods sold evolution 21.2% Fast growing targeted therapeutic areas Positives 21.0% (favourable “mix effect”) Productivity efforts 20.5% Negatives Price decreases (€19.4 million) mechanically reduce COGS ratio 2005 2006 Ratio using 2005 prices 2006 reported A significant improvement in
Slide 15: SG&A expenses evolution
SG&A expenses evolution marketing expenses Other sales and marketing expenses up by only Other sales and +5.2% 2.4%, significantly below the sales growth level: 383,0 reflects the success of productivity 364,1 improvement programmes +9.4% G&A 75.2 68.8 In million euros Increase in royalties paid
Slide 16: R&D expenses evolution
R&D expenses evolution Major research and development projects: +5.5% Drug-related research and 178,3 preparation of NDA for Somatuline® Autogel® Strategic +8.6% 5.3 development 169,0 development continuation of phase III clinical trials for Dysport® in 4.9 In million euros the USA Industrial +2
Slide 17: Published and recurring operating income evolution
Published and recurring operating income evolution Operating income (in million euros) 23.7% Operating margin (in % of sales) +14.8% 204.1 Non-recurring items 21.7% 23.0% Non-recurring 22.0% items 185.3 177.8 187.2 2005 2006 Strong increase in recurring operating profit despite a challenging environ
Slide 18: Cash flow generation evolution
Cash flow generation evolution In million euros 2005 2006 Tax effect on milestones cashed in Cash Flow before change in working capital 173.0 167.6 but not yet recognised Decrease in working capital 3.9 160.0 Milestones from Medicis and Roche Net cash flow generated by operating activities 176.9
Slide 19: Balance sheet evolution
Balance sheet evolution In million euros Assets Liabilities 31-dec-05 31-dec-06 31-dec-05 31-dec-06 Goodwill 188.8 188.8 Equity 619.8 726.5 Property, plans & equipments 187.8 198.2 Minority interests 1.3 1.4 Intangible assets 39.8 68.2 Long-term financial debts 53.3 21.6 Other non-current assets 18.
Slide 20: Milestones cashed in but not yet recognised as revenues
Milestones cashed in but not yet recognised as revenues Milestones cashed in before December 31, 2006 but not yet recognised as revenues December 31, 2006 December 31, 2005 (in million euros) Total cashed in : 184.3 21.8 These payments will be recognised in time as follows: 2007 13.6 9.6 2008 and be
Slide 21: 2006 R&D highlights and 2007 outlook
2006 R&D highlights and 2007 outlook Jacques-Pierre Moreau Chief Scientific Officer
Slide 22: 2006 R&D highlights
2006 R&D highlights Dysport® Dysport® Somatuline® Autogel® Phase III pivotal (aesthetic medicine) GLP-1 phase II results Filing with the FDA recruitment complete Market approval in Roche opts-in (Acromegaly) (Cervical dystonia) Germany (Glabellar lines) Somatuline® Autogel® Febuxostat Phase II initi
Slide 23: Strengthening our franchise in Uro-oncology
Strengthening our franchise in Uro-oncology KEY PRODUCT: DECAPEPTYL® 3 MONTHS ACAPODENE ® Active ingredient: Prevention of prostate DECAPEPTYL® Triptorelin (GnRH analogue) cancer 4 MONTHS Main indications: (“HG-PIN”) Phase III initiation Prostate cancer Phase II - option Commercialisation:
Slide 24: Acapodene Selective Estrogen Receptor Modulator (SERM)
Acapodene® – Selective Estrogen Receptor Modulator (SERM) I. High Grade PIN II. Prostate Cancer - Prevention of Advancement to PC Prostate - Prevention Cancer of ADT Side Effects Normal LHRH ADT LHRH ADT Prostate + Acapodene® Side Effects of ADT Hot flashes High Grade PIN Acapodene® Gynecomastia Pro
Slide 25: Strengthening our franchise in Endocrinology
Strengthening our franchise in Endocrinology KEY PRODUCT: SOMATULINE® AUTOGEL® KEY PRODUCT: NUTROPIN AQ® DOPASTATIN Active ingredient: Active ingredient: Somatostatin analogue Recombinant GH Initiation of phase Main indications : Main indications : I targeted in 2007 Acromegaly Growt
Slide 26: Regulation of GH Secretion (1)
Regulation of GH Secretion (1) Brain - SST GHRH + Pituitary GH Normal Growth Liver and Metabolism IGF1 25
Slide 27: Regulation of GH Secretion (2)
Regulation of GH Secretion (2) Brain Somatuline® - SST GHRH + Somatostatin - Therapy Pituitary GH Liver GH Excess - Acromegaly IGF1 26
Slide 28: Regulation of GH Secretion (3)
Regulation of GH Secretion (3) Brain GH Replacement - SST GHRH + Nutropin-Aq® Pituitary GH + Liver GH Deficiency IGF1 GH Deficiency 27
Slide 29: Regulation of GH Secretion (4)
Regulation of GH Secretion (4) Brain - SST GHRH + IGF1 Pituitary Replacement GH + Increlex® Liver + GH Deficiency IGF1 GH Resistance 28
Slide 30: An enhanced focus in the Neuromuscular disorders franchise
An enhanced focus in the Neuromuscular disorders franchise Botulinum toxin in aesthetic medicine DYSPORT® KEY PRODUCT: DYSPORT® indications in the US US with Botulinum toxin type A MEDICIS Filing targeted in 2007 Commercialisation: Filing targeted in 2007 Over 70 countries 2006 sales Options
Slide 31: 2007 newsflow
2007 newsflow Dopastatin Phase I initiation Dysport®: Cervical dystonia Filing with the FDA in the US Reloxin®: Glabellar lines Filing by Medicis with the FDA in the US NutropinAq®: Idiopathic short stature Under regulatory review in Europe Somatuline® Autogel®: Acromegaly Under regulatory
Slide 32: Outlook
Outlook Jean-Luc Bélingard Chairman and Chief Executive Officer
Slide 33: A rich newsflow in the future…
A rich newsflow in the future… Mission Statement To be a worldwide best-in-class provider of innovative drugs, addressing unmet medical needs in its targeted therapeutic areas Strategic Priorities GROW top-line and OPTIMISE returns of GLOBALISE through profits in the Targeted primary care thro
Slide 34: Financial objectives
Financial objectives 2007 objectives (1) 2006 actuals €861.7 Sales 6.5 to 7.5% growth millions €945.3 Total revenues 4.0 to 5.0% Growth millions Reported 22.0 to 23.0% 21.7% operating margin (in % of sales) NOTE 1 : before taking into account any price decrease on Tanakan® in France and before takin
Slide 35: Profitable growth
Profitable growth Fast-growing strategic targeted therapeutic areas Strong cash flow generation Product mix and improvement financial flexibility Strong operating margin 34