Pharming Group Nv · EURONEXT:PHARM
Pharming Group Nv — Shareholder Meeting (April 2015)
20 slides from Pharming Group Nv's shareholder meeting presentation, Apr 30, 2015
Slide 1: Pharming Group NV Annual General Meeting of Shareholders
Pharming Group NV (Euronext: PHARM) Sijmen de Vries, MD, MBA Chief Executive Officer Annual General Meeting of Shareholders Leiden, 30 April 2015 1
Slide 2: Safe harbour statement
Safe harbour statement The information contained in this document and made verbally to you (together the "Presentation") is being supplied to you solely for your information and may not be copied, reproduced or further distributed to any person or published, in whole or in part, for any purpose. The
Slide 3: Contents
Contents • Operational highlights • Financial headlines • Dutch Corporate Governance • Corporate Social Responsibility and sustainability • Risk Management & Controls • Business Model • Outlook 2015 3
Slide 4: Operational highlights
Operational highlights • FDA approval (July) and US launch for acute HAE attacks by Salix: and receipt of US$20 million milestone (November) Ruconest commercialisation • Direct commercialisation in Austria, Germany and Netherlands • FY 2014 sales €3.0 million (including €0.3 million in the US) Initi
Slide 5: Operational highlights: US Commercialisation
Operational highlights: US Commercialisation • US Partner: Salix Pharmaceuticals (A Valeant Company: NASDAQ: VRX) • Differentiated competitive profile in US market – • “First and only recombinant C1INH therapy”. • Efficacious: “Treats the attack in one shot” • US launch November 2014 • Competitive S
Slide 6: Operational highlights: US HAE market: Rapid Growth, Significant Potential
Operational highlights: US HAE market: Rapid Growth, Significant Potential 2014 sales for prophylaxis 2014 sales for acute (Cinryze) increased to treatments increased to almost US$500M* >$400M ** The US HAE market is expected to continue to grow 5-10% until 2018*** HAE disease awareness in the US co
Slide 7: Financial headlines: Revenues 2014
Financial headlines: Revenues 2014 (€ million) 18 16 14 12 10 8 6 4 2 0 Milestones Product sales Deferred revenues Grants 2013 2014 7
Slide 8: Financial headlines: Income statement 2014
Financial headlines: Income statement 2014 (€ million) 25 20 15 10 5 0 Revenues Gross profit Costs Operating result Net loss -5 -10 -15 -20 2013 2014 8
Slide 9: Financial headlines: Cash flows 2014
Financial headlines: Cash flows 2014 (€ million) Total cash at year-end 2014: € 34,4 million 25 20 15 10 5 0 Operating Investing Financing Total -5 cash flow cash flow cash flow cash flow -10 2013 2014 9
Slide 10: Financial headlines: Working capital 2014
Financial headlines: Working capital 2014 (€ million) 15 10 5 0 Inventories Trade and other Liabilities* Net working capital receivables -5 -10 -15 2013 2014 * excl. deferred license fees and derivatives 10
Slide 11: Dutch Corporate Governance Code
Dutch Corporate Governance Code Corporate Governance Statement 2015 on website www.pharming.com/corporate The best practices where the Company deviates from the Dutch Corporate Governance Code are as follows: II.2.4. (Options for the Management board) II.2.6. (Option exercise price) III.6.5 (Ownersh
Slide 12: Corporate Social responsibility/ sustainability
Corporate Social responsibility/ sustainability •Medical need and patient safety •Code of Conduct •Animal care code of conduct and animal welfare •Environmental impact of operations and trace- ability of supply chain •Diversity and equal opportunities 12
Slide 13: Risk management and controls
Risk management and controls •Periodical risk assessments and reviews – Types of risk assessed (in no particular order) – Macro (economical), Clinical and Regulatory, Research & Development, Manufacturing, Commercial, Financial, IT, Human Resources and Legal •Financial control systems – All revenues
Slide 14: Business Model
Business Model Future profitability initially driven by: • Proceeds from Ruconest US sales – Tiered supply price to Salix/ Valeant: 30- 40% of net sales • Proceeds from Ruconest EU sales – Direct commercialisation by Pharming in Austria, Germany and Netherlands – Fixed supply price per vial to Sobi
Slide 15: Business Model
Business Model • Potential for increasing profitability from development of Ruconest in additional indications (eg. Prophylaxis of HAE, Acute Pancreatitis) • De-risking of Company through investment in development of pipeline of new products – Pharming R&D and business development – SIPI development
Slide 16: Business Model: Pharming pipeline development
Business Model: Pharming pipeline development Assets acquired from TRM SASU for € 0.5 million in cash • Five New Product Leads – Including product leads for ERT treatments (Pompe’s disease and Fabry’s disease) and leads for Factor VIII • Technology – Access gained to transgenic rabbit founder techno
Slide 17: Business Model: Product Development Collaboration
Business Model: Product Development Collaboration SIPI (Shanghai Institute for Pharmaceutical Industry: A Sinopharm company) • Product development at SIPI – Under Pharming’s fully ICH compliant QA systems – Compliant with CFDA, FDA and EMA standards – Funded by SIPI up to IND – Aligned clinical deve
Slide 18: Business model summary
Business model summary Revenues from New Pipeline US net sales: Increasing sales Development development Ruconest® volumes drive of additional 30% of up to from sales significant indications for US$100M Pharming increasing economies of Ruconest® annual sales R&D, business in Europe scale stepwise 50
Slide 19: Outlook 2015
Outlook 2015 •Solid balance sheet and lean cost structure • YE 2014 cash balance €34.4M/ Q1 2015 €30.3M • Increasing revenues from increasing Ruconest sales • Continue to invest in build up of Ruconest inventories • Increasing Investments in clinical trials for additional indications and R&D for new
Slide 20: www.pharming.com
www.pharming.com NYSE Euronext: PHARM 20