Teva Pharmaceutical Industries Limited · TASE:TEVA
Teva Pharmaceutical Industries — Investor Presentation (August 2003)
36 slides from Teva Pharmaceutical Industries's investor presentation, August 2003
Slide 1: August 2003
1 August 2003 Pharmaceutical Industries Ltd.
Slide 2: Forward-Looking Statements
Forward-Looking Statements 2 TODAY’S PRESENTATION CONTAINS FORWARD LOOKING STATEMENTS WHICH EXPRESS THE CURRENT BELIEFS AND EXPECTATIONS OF MANAGEMENT. SUCH STATEMENTS ARE BASED ON CURRENT EXPECTATIONS AND INVOLVE A NUMBER OF KNOWN AND UNKNOWN RISKS AND UNCERTAINTIES THAT COULD CAUSE TEVA’S FUTURE R
Slide 3: Our Business
Our Business 3 World’s leading manufacturer and marketer of generic drugs, both in terms of revenues and global reach Growing player in proprietary products in niche categories: Copaxone® Leading supplier of raw materials for pharmaceutical products Largest producer of both branded and generic pharm
Slide 4: Strong Sales and EPS performance in H1/03
Strong Sales and EPS performance 4 in H1/03* 1-6/2003 1-6/2002 %Change Sales ($ Millions) 1,521.8 1,117.1 36.2% Net Income ($ Millions) 275.0 177.5 54.9% Earnings per ADR (diluted $)** 0.99 0.66 50% Cash Flow from Operations 301.7 233.0 29% P/E Ratio 2003 (F.C. Consensus $2.03) 27 Market Capitalizat
Slide 5: Sales - By Region
Sales - By Region 5 Q2/03: $764.4 Million Q2/02: $ 572.0 Million North North America America 60.1% 62.2% 10.7% 13.2% Europe 29.2% Europe 24.6% ROW ROW North America Europe ROW
Slide 6: Teva North America
Teva North America 6
Slide 7: Pharmaceutical Sales in North America
Pharmaceutical Sales in North America ($ Millions) 7 450 450 3 8 % 400 400 R = 350 350 CAG 300 300 250 250 200 200 405 150 327 150 287 100 240 100 50 50 112 00 Q2/99 Q2/99 Q2/00 Q2/00 Q2/01 Q2/01 Q2/02 Q2/02 Q2/03 Q2/03
Slide 8: Why Do Customers Choose Teva USA?
Why Do Customers Choose Teva USA? 8 Generic Industry Leadership - Commitment #1 in total and new RX’s Broad Product Line - 141 products 67 products rank #1 in market share 46 products rank #2 in market share Leadership index – 80% Largest pipeline in industry Pre-eminent Customer Service Unparallele
Slide 9: Top U.S. Generic Companies
Top U.S. Generic Companies 9 (ranked by # of retail prescriptions)* (000’s) Total Rx’s 1 Teva USA 195,621 +10% 2 Mylan 187,976 +6 3 Watson 180,970 +2 4 Geneva 147,626 +1 5 Alpharma 83,247 -6 6 IVAX 80,720 +0 7 Barr 70,731 +5 8 Qualitest 60,738 +33 9 Mallinckrodt 58,513 +44 10 Par 52,710 +37 Source:
Slide 10: USA - Final Approvals – 2003 to Date
USA - Final Approvals –2003 to Date 10 (As of July 25, 2003) Product Product Approval Approval Originator Originator Market Market size* size* Date Date Brand Brand ($ ($ Million) Million) Quinapril (2) (2) Tabs 06/03 Accupril ®® 598 Moexipril (1) (1) (2) (2) Tabs 05/03 Univasc ®® 56 Megestrol Susp
Slide 11: USA - Tentative/Approvable
USA - Tentative/Approvable 11 (As of July 25, 2003) Product Approval Patent Originator Market size Date Expiry Brand ($ Million) Fosinopril Tabs 07/03 NA Monopril® 269 Metformin ER Tabs 03/03 NDF 10/03 Glucophage® 428 Carboplatin Inj 01/03 4/04 Paraplatin® 626 Alendronate Tabs 12/02 NA Fosamax® 1,70
Slide 12: Approvals Summary – 2003 to Date
Approvals Summary –2003 to Date 12 (As of July 25, 2003) Received: 6 Final Approvals 3 Tentative/Approvable 6 Products Launched Total Brand Sales > $1 Billion
Slide 13: Pipeline Future
Pipeline Future 13 49 FILINGS PLUS 12 TENTATIVE/ APPROVABLE 41 of these 61 are paragraph IV filings 61 Filings Over $48 Billion In Total Sales 15 First-To-File: Over $8 Billion In Total Sales As of July 17, 2003
Slide 14: Pharmaceuticals Europe
Pharmaceuticals Europe 14
Slide 15: What do we have in Europe?
What do we have in Europe? 15 (Pharmaceutical Activity Only) Company Market Business Market Position (Country) No. 3 genericOncology and Teva Classics SA France Pharma retail APS/Berk U.K. Pharma No. 2/3 generic Pharmachemie Holland Pharma No. 1 generic Teva Pharma Belgium Pharma No. 2 generic GRY P
Slide 16: API
API 16 Active Pharmaceutical Ingredients
Slide 17: Teva's API
Teva’s API 17 Sales of API’s to third parties - an important part of Teva’s overall business. Vertical Integration supports Teva’s core pharmaceutical businesses: - Supply Chain Management - Cost Control - Control of Quality
Slide 18: Overview - API
Overview - API 18 ($ Millions) Internal / third party sales third party 465 internal 369 315 259 259 268 219 219 181 181 169 169 169 206 206 101 93 93 134 134 150 150 100 52 52 100 76 76 49 49 1999 1999 2000 2000 2001 2001 2002 2002 Q2/02 Q2/02 Q2/03 Q2/03
Slide 19: Teva API Portfolio Growth
Teva API Portfolio Growth 19 100 98 90 90 80 70 70 63 60 50 50 43 39 40 36 30 27 18 20 10 0 1994 1995 1996 1997 1998 1999 2000 2001 2002 Q2/2003
Slide 20: Teva's API - Leadership in the U.S. Generic Market
Teva’s API - Leadership in the U.S. Generic Market 20 MARKET SHARE – 45 products > 50% COST LEADERSHIP – Intensive process research to continuously reduce costs. BE FIRST – STAY LAST IN EACH PRODUCT- Market support & Sustainability
Slide 21: Research & Development
Research & Development 21
Slide 22: Proprietary Products – Focus on CNS & AI
Proprietary Products – Focus on CNS & AI 22 rasagiline PD rasagiline AD, MS TV - 1901 Epilepsy, N. Pain TVP - 1012 Stroke TV - 3326 AD TV - 4710 SLE glatiramer NDD acetate I II III Discovery Pre-Clinical Clinical Development Phase Reg. Submissions in Preparation Parkinson (PD) Epilepsy (EP) Systemic
Slide 23: Rasagiline - Regulatory Submission in Preparation
Rasagiline- Regulatory Submission in Preparation 23 A Parkinson’s Disease product A selective, potent and irreversible MAO-B Inhibitor Monotherapy for early stage disease (One phase III study successfully completed) Adjunct therapy with Levodopa for advanced stage disease (2 Phase III studies succes
Slide 24: COPAXONE works, day after day
COPAXONE’ works, day after day, month after month, year after year
Slide 25: Copaxone - Clinical Advantages
Copaxone® - Clinical Advantages 25 Unique dual action MS therapy Provides neuroprotection by releasing neuroprotective factors, such as (BDNF). May also be able to reserve permanent brain damage, as demonstrated by MRI Black Holes reduction, and increase in MRS NAA levels (ENS Presentation) The only
Slide 26: Copaxone - Product Advantages
Copaxone® - Product Advantages 26 Sets the standard in tolerability and safety – no major side affects - No increased risk in Pregnancy (FDA Category B) – AAN poster In N. America available in a pre-filled ready-to-use syringe Available with a specially designed autoinjector to make self- injection
Slide 27: In-Market Global Sales of Copaxone
In-Market Global Sales of Copaxone® 27 ($ Millions) Non USA USA Up 35% 200 200 176 156 156 144 56 56 150 150 Up 84% 130 47 47 130 40 40 35 35 30 30 30 30 120 116 116 120 100 100 109 109 109 109 100 100 100 100 50 50 Up 21% 00 Q2/02 Q3/02 Q4/02 Q1/03 Q2/02 Q2/03
Slide 28: We Focus on Shareholder Value
We Focus on Shareholder Value 28
Slide 29: Development of Results (Q2)
Development of Results (Q2) 29 Q2 Sales ($ Millions) Q2 Net Income ($ Millions) 22% = A GR 41% C = A GR C 764.4 572.0 137.2 513.6 91.9 69.0 Q2/2001 Q2/2002 Q2/2003 Q2/2001 Q2/2002 Q2/2003
Slide 30: Gross Margin (In Percentages)
Gross Margin (In Percentages) 30 52 48 44 40 36 32 28 24 43.2 42.9 44.0 46.0 47.1 20 16 12 8 4 0 Q2/02 Q3/02 Q4/02 Q1/03 Q2/03
Slide 31: R&D Expenses ($ Millions)
R&D Expenses ($ Millions) 31 Gross R&D Grants & Participations R&D - Net Gross Increased by 23% Net Increased by 32% 70 61 60 9 50 55 50 45 46 6 3 8 6 40 30 20 47 49 37 40 52 10 0 Q2/02 Q3/02 Q4/02 Q1/03 Q2/03
Slide 32: SG&A Expenses ($ Millions)
SG&A Expenses ($ Millions) 32 140 17.1% 17.0% 14.2% 16.2% 17.0% % of 130 sales 120 110 100 90 80 70 60 50 98 107 109 123 130 40 30 20 10 0 Q2/02 Q3/02 Q4/02 Q1/03 Q2/03
Slide 33: Earnings per ADR (diluted, In $)
Earnings per ADR* (diluted, In $) 33 Up 44% 0.6 0.55 0.5 0.45 0.4 0.35 0.3 0.25 0.2 0.34 0.36 0.50 0.50 0.49** 0.15 0.1 0.05 0 Q2/02 Q3/02 Q4/02 Q1/03 Q2/03 • Reflects the 2:1 split (December 2002). ** Before non recurring income net of expenses of $0.26 per ADR.
Slide 34: Return on Average Equity (In Percents)
Return on Average Equity (In Percents) 34 % 30 27%** 25 20 15 10 19% 19% 23% 26% 5 6.8% 0 1999* 2000* 2001* 2002 Q2/03*** * Before non-recurring expenses (after tax): 2001 - $9.7M; 2000 - $35.7M; 1999 - $17.7M; ** Grossed up. *** Before non- recurring income net of expenses of $73.2M after tax.
Slide 35: Cash Flow Highlights
Cash Flow Highlights 35 ($ Millions) Year Year Q2/03 Q1/03 Q4/02 Q3/02 Q2/02 2002 2001 Cash flow from operating activities 98 204 28 93 130 354 273 Amortization (intangibles) 7 8 8 2 7 21 38 Depreciation (fixed assets) 22 22 22 20 16 76 72 Acquisition of companies -- -- -1 4 154 156 -- Purchase of f
Slide 36: Summary
Summary 36 Global leader in generic pharmaceuticals Largest generics revenue base worldwide #1 in terms of new prescriptions in the U.S. Leading pipeline of 61 ANDAs awaiting FDA approval (including 12 tentative approvals) Manufacturer of Copaxone® #2 in U.S. (27.5% TRx* market share and growing) Ap
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