Recordati S.p.a. · MIL:REC
Recordati — Jefferies Global Healthcare Conference 2011
24 slides from Recordati's conference presentation, Sep 28, 2011
Slide 1: A European Specialty Pharmaceutical Group
A European Specialty Pharmaceutical Group JEFFERIES GLOBAL HEALTHCARE CONFERENCE – LONDON, 28 SEPTEMBER 2011
Slide 2: A strategy of growth and geographical expansion
A strategy of growth and geographical expansion • A mid sized pharmaceutical company with a European focus (2800 employees, of which 1400 field force) • R&D in the cardiovascular and urology fields and in treatments for Profile rare diseases • Marketing operations in the main Western European market
Slide 3: Our products are sold in 130 countries
Our products are sold in 130 countries 17 Subsidiaries 8 Branches 105 Countries where Recordati products are sold (under license or exported) 3
Slide 4: A growing presence in Eastern Europe and Turkey
A growing presence in Eastern Europe and Turkey Portugal 4.5% Spain 4.2% UK 1.1% Germany 8.5% Other W. European countries 2.5% Russia, Turkey, other CEE 11.5% France 17.2% Other international sales 18.9% (sales to licensees and exports) Italy 31.6% Data: First half 2011 Pharmaceutical revenue € 385.
Slide 5: A richer product portfolio
A richer product portfolio Zanipress 4.9% Urorec 2.0% Other corporate products 8.3% Zanidip 17.2% Orphan drugs 8 8.8% 8% Pharmaceutical chemicals 3.9% Subsidiaries local product Subsidiaries’ Other revenue 3.8% portfolios 51.1% Entact®/Elopram® 6% (escitalopram/citalopram) ‐ Italy Peptazol® (pantopr
Slide 6: Sales development
Sales development Sales growth to accelerate from 5% to 8% over the 2011‐2013 period From € 728 m in 2010 to € 875 m in 2013 • Key growth drivers: • New corporate products: d Urorec® ® (silodosin) ( l d ) Livazo® (pitavastatin) • New N growing i markets k t • Orphan drug business Based on existing b
Slide 7: Urorec (silodosin)
New corporate products Urorec® (silodosin) • Highly selective α1A receptor antagonist indicated for the treatment of symptoms associated with benign prostatic hyperplasia (BPH). • Fast onset of action. High efficacy. Very good cardiovascular safety. • Launched in 11 markets: Belgium, France, Germany
Slide 8: Livazo (pitavastatin)
New corporate products Livazo® (pitavastatin) • Highly effective HMG‐CoA reductase inhibitor indicated for the treatment of hypercholesterolaemia. • Thanks to its unique chemical structure Livazo® is a potent LDL‐lowering drug with a consistent and progressive HDL‐raising effect. (Atherosclerosis Su
Slide 9: Lercanidipine franchise
Lercanidipine franchise Zanipress® (lercanidipine+enalapril) Zanidip® (lercanidipine) • SSales l off Zanidip® Z idi ® (l (lercanidipine) idi i ) tto erode d progressively i l over ti time ffollowing ll i it its patent t t expiry at the beginning of 2010. • Sales of Zanipress® (lercanidipine+enalapri
Slide 10: Russia, Ukraine and other C.I.S. markets
New growing markets Russia, Ukraine and other C.I.S. markets Russia has the largest pharmaceutical market in the CEE region, region forecast to grow at a CAGR of 11.6% in the period 2010‐2014. (Jefferies) • Rusfic in Russia and FIC Médical in the other CIS countries to become exclusive Recordati sub
Slide 11: Turkey
New growing markets T k Turkey Turkey remains one of the most promising pharmaceutical markets in Central and Eastern Europe in the long term. (Research and Markets) Pharmaceutical market CAGR estimated at 10‐13% over the 2009‐2014 period. (IMS) • Yeni Recordati delivering excellent sales growth sin
Slide 12: Orphan Europe - A worldwide business
Orphan drugs Orphan Europe ‐ A worldwide business Huge market potential: 5,000 5,000‐7,000 7,000 rare diseases identified for which only 72 orphan drugs are approved. Progressive country introduction of rare disease plans and access to diagnostic tests will stimulate the market for orphan drugs. • S
Slide 13: Orphan drugs
Orphan drugs ADAGEN® (pegademase bovine), indicated in the treatment of SCID‐ADA deficiency CARBAGLU® (carglumic acid), indicated in the treatment of hyperammonaemia due to NAGS deficiency and to the main organic acidemias CYSTADANE® (betaine anhydrous), indicated in the treatment of homocystinuria
Slide 14: A well balanced R&D pipeline
A well balanced R&D pipeline NAME ORIGINATOR INDICATION DEVELOPMENT STATUS Approved in EU CARBAGLU® CARBAGLU Recordati Organic g acidemias Ph Phase III in i U.S. US NORMOSANG® Recordati Hepatic porphyria Pre‐registration in U.S. NX 1207 Nymox y Benign prostatic hyperplasia (BPH) Phase III lercanidip
Slide 15: A well balanced R&D pipeline (cont'd)
A well balanced R&D pipeline (cont’d) • CARBAGLU® (carglumic acid), currently approved for the treatment of hyperammonaemia due to NAGS deficiency, recently approved in Europe and in phase h III clinical li i l ddevelopment l t iin the th USA ffor additional dditi l iindications di ti iin organic i
Slide 16: A well balanced R&D pipeline (cont'd)
A well balanced R&D pipeline (cont’d) • CYSTADROPS® (cysteamine chlorhydrate) are eye drops developed for “ocular manifestations of cystinosis” which cannot be controlled by orally administered cysteamine, t i specially i ll formulated f l t d iin a patient‐friendly ti t f i dl gell form. f A phase
Slide 17: First half 2011 highlights
First half 2011 highlights A very productive six months • Revenue € 401.0 million, up 6.6%. • Operating income (EBIT) € 88.2 88 2 million or 22 0% of sales 22.0% sales, up 5 2% 5.2%. • Net income € 62.4 million or 15.5% of sales, up 5.3%. • Acquisition of Procto Glyvenol for the markets of Central a
Slide 18: Composition of revenue
Composition of revenue New emerging markets and new products driving growth (million Euro) 1H 2011 1H 2010 Change % Italy 121.8 105.9 15.0 France 66.2 71.9 (8.0) Germany 32.8 30.5 7.5 Portugal 17.2 18.7 (8.2) S i Spain 16 3 16.3 14 9 14.9 95 9.5 United Kingdom 4.2 5.0 (15.0) Other Western European c
Slide 19: Main product sales
Main product sales Corporate products including orphan drugs now account for 41.2% of sales (million Euro) 1H 2011 1H 2010 Change % Zanidip® (lercanidipine) 69.2 82.0 (15.6) ® ((lercanidipine+enalapril) p Zanipress p p ) 19.6 14.5 35.4 Urorec® (silodosin) 7.9 ‐ n.s. Livazo® (pitavastatin) 2.4 ‐ n.s.
Slide 20: First half 2011 results
First half 2011 results Healthy sales and earnings growth (million Euro) 1H 2011 1H 2010 Change % Revenue 401.0 376.3 6.6 Gross Profit 267.5 254.9 4.9 as % of revenue 66 7 66.7 67 7 67.7 SG&A Expenses 147.7 135.1 9.3 as % of revenue 36.8 35.9 R&D Expenses 31.0 32.9 (5.8) as % of revenue 7.7 8.7 Othe
Slide 21: Financial position and Shareholders' equity
Financial position and Shareholders’ equity Positive cash position even after dividend payout and investments (million Euro) 30 Jun 2011 31 Dec 2010 Change Cash and short‐term financial 186 9 186.9 161 7 161.7 25 2 25.2 investments Bank overdrafts and short‐term loans (2.6) (3.5) 0.9 Loans – due wit
Slide 22: Financial projections
Financial projections 2011 targets will be beaten 2010 2011 (million Euro) Actuall Targets Revenue 728.1 > 750 Operating income (EBIT) 154.8 >160 Net Income 108.6 >110 22
Slide 23: The Recordati share
The Recordati share The Recordati share (ticker REC, Reuters RECI.MI, Bloomberg Last 12 months’ prices: REC IM, ISIN IT 0003828271) has been listed on the Italian Stock Exchange since 1984. It belongs to the FTSE IT Mid Cap and FTSE IT Health Care indexes indexes. Share capital consists of 209,125,1
Slide 24: Company declarations, disclaimers and profile
Company declarations, disclaimers and profile DECLARATION BY THE MANAGER RESPONSIBLE FOR PREPARING THE COMPANY’S FINANCIAL REPORTS The manager responsible for preparing the company’s financial reports Fritz Squindo declares, pursuant to paragraph 2 of Article 154‐bis of the Consolidated Law on Finan
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