Laboratorios Farmaceuticos Rovi, S.a. · BME:ROVI
Laboratorios Farmaceuticos Rovi — H1 2020 Earnings Presentation
25 slides from Laboratorios Farmaceuticos Rovi's earnings presentation, July 2020
Slide 1: First Half 2020 Financial Results
F I R S T H A L F 2 0 2 0 F I N A N C I A L R E S U LT S J U LY 2 0 2 0
Slide 2: Disclaimer
Disclaimer • This Presentation has been prepared by Laboratorios Farmacéuticos ROVI, S.A. (the “Company”) and comprises the slides for a presentation concerning the Company and its subsidiaries (the “Group”). For the purposes of this disclaimer, “Presentation” means this document, its contents or an
Slide 3: ROVI response to COVID-19 pandemic
ROVI response to COVID-19 pandemic ROVI priorities during COVID-19 ROVI status across the value chain • All manufacturing sites operating Safeguard the health of our Production & • LMWH essential medicines for employees Commercial COVID-19 • Reduction of hospital activity • Continuation of Doria® ap
Slide 4: H1 2020 financial results - Highlights
H1 2020 financial results - Highlights Operating revenue growth of 8% to €191.1Mn and EBITDA growth of 60% to €42.4Mn in H1 2020. Sales of the heparin franchise increased by 23% to €104.0Mn in H1 2020. Sales of Neparvis® increased by 43% to €13.8Mn in H1 2020. Toll manufacturing sales increased by 3
Slide 5: Milestone achieved: Moderna fill-finish collaboration
Milestone achieved Moderna and ROVI announce collaboration for fill-finish manufacturing outside the United States of Moderna’s COVID-19 vaccine candidate. ROVI will provide vial filling and packaging capacity to support production of the vaccine candidate intended in principle to supply markets out
Slide 6: Operating results
Operating results Juan López-Belmonte Chief Executive Officer
Slide 7: Growth driven by specialty pharma and toll manufacturing businesses
Growth driven by specialty pharma and toll manufacturing businesses… +8% 7
Slide 8: …with high profitability
…with high profitability +60% 45 EBITDA 25,0% 42,4 EBITDA % 40 22,2% 35 +83% 20,0% Net profit 29,6 30 EBITDA 26,5 EBITDA % 15,0% 14,9% 25 €Mn 20 Net profit 16,2 10,0% 15 10 5,0% 5 0 0,0% H1 2019 H1 2020 EBITDA increased to €42.4Mn in H1 2020, a rise of 60% compared to same period last year. Net prof
Slide 9: Heparins, leading the specialty pharmaceutical business
Heparins, leading the specialty pharmaceutical business Prescription-based sales Heparin franchise sales Sales LMWH 144 +7% 120 +23% 60 +35% +14% 141,7 104,0 51,6 142 49,3 100 50 45,2 140 84,8 138 80 40 36,5 136 €Mn €Mn €Mn 60 30 134 132,5 132 40 20 130 20 10 128 126 0 0 H1 2019 H1 2020 H1 2019 H1 2
Slide 10: Well Positioned to Drive Long-Term Leadership in LMWH
Well Positioned to Drive Long-Term Leadership in Low Molecular Weight Heparins (LMWH) Sales of LMWH (Enoxaparin biosimilar and Bemiparin) increased by 24% to €101.0Mn in H1 2020. Total group sales Enoxaparin & Bemiparin international sales Sales H1 2019 Sales H1 2020 Sales Bemiparin H1 2020 +10 pp 3
Slide 11: Strong growth potential of Enoxaparin Biosimilar Becat
Strong growth potential of Enoxaparin Biosimilar Becat® Strong Commercial Launch with a Clear Strategy Well-Established Network to Minimize Time-to-Market Direct • ROVI launched enoxaparin biosimilar Becat® in Germany (first EU Marketed in Approved in 1 market) in September 2017; in UK, Italy, Spain
Slide 12: Strong performance of the product portfolio
Strong performance of the product portfolio 20 -14% 18 +43% +4% 16,7 15,9 16 15,4 14,4 13,8 14 12 9,6 +9% €Mn 10 -21% 8 7,5 7,0 6,4 5,9 6 4 2 0 Neparvis Volutsa Vytorin & Absorcol & Orvatez Ulunar & Hirobriz Contrast agents and other hospital products Sales H1 2019 Sales H1 2020 12
Slide 13: Value added toll manufacturing services
Value added toll manufacturing services Toll manufacturing strategy Toll manufacturing evolution Our biosimilar of enoxaparin as a catalyst for the integration of industrial processes among all our manufacturing plants. H1 2020 Sales 34,8 Packaging Excellence Centre in our Alcalá de Henares plant €M
Slide 14: ISM Platform Opens Up New Avenues of Growth for ROVI
ISM® Platform Opens Up New Avenues of Growth for ROVI Overview Key Company Highlights of ISM® Platform • Internally-developed and patented innovative drug-release technology, ISM®1, which allows for the sustained release of compounds administered by injection Pop PK 2 model & simulations Expected hi
Slide 15: Guidance 2020
Guidance 2020 2020 operating revenue growth rate Mid-single-digit T HE KEY G ROWTH LEVERS IN 2 0 2 0 Specialty Pharma Business Toll Manufacturing Services Bemiparin Spare capacity in the manufacturing plants Biosimilar of Enoxaparin New customers to be acquired Launches such as Neparvis an
Slide 16: Financial results
Financial results Javier López-Belmonte Chief Financial Officer
Slide 17: Good revenue level with resilient sales growth
Good revenue level with resilient sales growth Total operating revenue LMWH sales 120 +8% 100 +24% 101.0 81.7 80 49,3 36,5 €Mn 60 40 51,6 20 45,2 0 H1 2019 H1 2020 Bemiparin Enoxaparin biosimilar • Operating revenue increased by 8% to €191.1Mn, achieved on: • 7% growth in prescription-based products
Slide 18: Gross margin mainly impacted by the increase in toll manufacturing sales
Gross margin mainly impacted by the increase in toll manufacturing sales and the increase in heparin prices Gross profit and Gross margin Gross margin impacts for the period • Increase in toll manufacturing sales contributing with higher margins to group sales. 120 58,8% 60% 57,4% • Increase in Bemi
Slide 19: Cost control along with commitment to R&D
Cost control along with commitment to R&D SG&A expenses R&D expenses 70 40,0% 65 34,2% -3% 35,0% 30,9% 60 30,0% H1 2020 10,8 55 25,0% -27% €Mn 50 20,0% €Mn 45 60,7 59,1 15,0% 40 10,0% H1 2019 14,7 35 5,0% 30 0,0% H1 2019 H1 2020 SG&A SG&A/Operating revenue 0 2 4 6 8 10 12 14 16 SG&A expenses down 3%
Slide 20: EBITDA, EBIT & net profit analysis
EBITDA, EBIT & net profit analysis EBITDA EBIT 45 42,4 25% 35 32,9 20% 40 +60% 22,2% 20% 30 +85% 17,2% 35 25 15% 30 26,5 14,9% 15% 20 17,7 25 €Mn €Mn 10,0% 10% 20 15 10% 15 10 5% 10 5% 5 5 0 0% 0 0% H1 2019 H1 2020 H1 2019 H1 2020 EBITDA EBITDA Margin EBIT Ebit margin Net profit 35 29,6 30 +83% 25 2
Slide 21: PRE-R&D analysis
PRE-R&D analysis 60 +29% 53,2 +34% +32% 50 43,6 41,2 39,3 40 32,5 29,8 €Mn 30 20 10 0 EBITDA pre-R&D EBIT pre-R&D Net profit pre-R&D H1 2019 H1 2020 • EBITDA “pre-R&D” increased by 29%, from €41.2Mn in H1 2019 to €53.2Mn in H1 2020. • EBIT “pre-R&D” increased by 34%, from €32.5Mn in H1 2019 to 43.6M
Slide 22: Capital expenditure and Free Cash Flow
Capital expenditure and Free Cash Flow Capex evolution FCF evolution 10 8,6 8 7,3 6 €Mn 4 2 0 H1 2019 H1 2020 CAPEX distribution H1 2020 Maintenance capex & other FCF decreased to €-22.3Mn mainly due to: Escúzar facility 9% 6% • Increase of €77.3Mn in the “inventories” line in the H1 2020 mainly as
Slide 23: Debt analysis
Debt analysis Debt breakdown by source (%) Debt maturities 60 53,5 50 Financial liabilities 25% 40 for leases €Mn 30 Debt with public administration 20 Bank borrowings 60% 9,6 15% 10 3,0 4,8 4,5 0 Total debt €75.4Mn 2020 2021 2022 2023 2024 onwards • Debt with public administration represented 15% o
Slide 24: News-flow 2020
News-flow 2020 Sales of biosimilar of Enoxaparin Specialty No additional products expected to be launched as a result of COVID-19 crisis. Pharma Granting by the competent local authorities of the marketing authorisation of an Enoxaparin biosimilar in 70 countries outside Europe Toll New contracts to
Slide 25: For further information, please contact
For further information, please contact: Juan López-Belmonte Chief Executive Officer +34 91 3756235 jlopez-belmonte@rovi.es www.rovi.es Javier López-Belmonte Chief Financial Officer +34 91 3756266 javierlbelmonte@rovi.es www.rovi.es Marta Campos Investor Relations +34 91 2444422 mcampos@rovi.es www.
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