1Q11 & FY10 Financial Results May 11, 2011

Transcription

1 1Q11 & FY10 Financial Results May 11,

2 Disclaimer These presentations and discussions contain certain forward looking statements with respect to the results of operation, financial condition and current expectation about future events. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. We undertake no obligation to publicly update or revise any forward looking statements whether as a result of new information, future events or otherwise. The actual result could differ materially from those anticipated in these forwardlooking statements. 2

3 AGENDA 2010 and 1Q11 Financial Results Business Outlook & Expansion Strategies Main Projects Project A : JAPAN JV with WAKAMOTO Project B : CHINA Bio-Venture of YungRay Project C : US ANDAs Regional Actions CHINA Action 1: M&A of China-based Marketing firm Action 2: Patch Plant TAIWAN Action 1: M&A of TW-based Pharmacy Chain Action 2: Entering the Biopharmaceutical arena ASEAN Action 1: Veterinary Plant Conclusion Q&A 3

4 FINANCIAL RESULTS YungShin Global Holding -- 1Q11 Financial Results YungShin Pharm. -- Consolidated Income Statement YungShin Pharm. -- Income Statement

5 YungShin Global Holding 1Q11 Financial Results Yungshin Group s Consolidated Revenue in 1Q11 is 1,070M, which increases by 7.3% YoY. * Above-mentioned consolidated revenue excludes revenue of YZC and YSP SAH. ** Consolidated revenue in management reports in 1Q11 is 1,622M (W/ YZC and YSP SAH), which increases by 11.3% YoY. YSH 1Q11 NT$MN 1Q11 Investment Revenue 160 Operating Income 152 Net Income 152 EPS 0.6 YSP s Net Profit after Tax (Reviewed by PwC) 5

6 YungShin Pharm. Consolidated Income Statement Consolidated NT$MN FY2009 FY2010 YoY Revenue 4,079 4, % Gross Profit 2,092 2, % Operating Income % Equity in earnings of equity method investees, net % Net Income % Basic EPS(NT$) % Margin(%) Gross Margin 51.3% 49.4% Operation Margin 14.3% 15.1% Net Margin 12.8% 15.3% 6

7 YungShin Pharm. Income Statement NT$MN 1Q10 1Q11 YoY Revenue % Gross Profit % Operating Income % Equity in earnings of equity method investees, net Pre-Tax Income(excluding Equity in earnings of equity method investees, net Margin(%) % % Gross Margin 47.8% 48.0% Operation Margin 12.3% 14.1% Pre-Tax Income(excluding Equity in earnings of equity method investees, net 16.3% 16.2% 7

8 YungShin Strategy Repositioning Regional Pharma Player Vertical & Horizontal Integration Well- Balanced Cost- Effectiveness & Quality Long-term Sustainable Global Player YSP YSH

9 OUR MAIN PROJECTS Project A : JAPAN JV with WAKAMOTO Project B : CHINA Bio-Venture of YungRay Project C : US ANDAs

10 Project A: JV with WAKAMOTO JAPAN

11 PROJECT A JV with WAKAMOTO Foundation: April, 1929 President: Nobuyuki Kamiya Capital: billion yen (2010.3) WAKAMOTO Profile Business Activity: Development & Sale of Branded Ethical Drugs (Eye Drops), OTC and Consumer Products Number of Employees: 433 Sales: billion yen (2010.3)

12 PROJECT A JV with WAKAMOTO JV Pharma Cases in JAPAN Foreign Japan JV Co TEVA Isreal + KOWA Japan = TEVA-KOWA Pharm Actavis Iceland + ASKA = Japan Actavis-ASKA Pharm. Next YungShin Taiwan + WAKAMOTO = Japan YungShin-WAKAMOTO Pharm.

13 PROJECT A JV with WAKAMOTO Business Model License Owner YSP Export JV Co. M&A Japan Marketing Company Direct sales Service Provider Wakamoto Wakamoto MR s promotion Wholesalers Rx Clinic HP Co-Branding Strategy of YungShin - Wakamoto 13

14 PROJECT A JV with WAKAMOTO Action Plan Preparation JV with WAKAMOTO JV Marketing Co Stage I Plan to JV with WAKAMOTO Apr signed MOU Portfolio decision Stage II Set up JV company (July, 2011) License Application (September, 2011) Develop GE drugs Fund raising Plan to M&A Japan Marketing Company Stage III Establish fully functional JV Co. in Japan 14

15 CHINA Project B: Bio-Venture of YungRay 15

16 PROJECT B Bio-Venture of YungRay Main Products Versazyme Innovative animal feed enzyme products Fermentation derived Global Market: 7,000 T/yr above China Market: 1,000 T/yrTarget Market: South American, Southeast Asia & China YungRay Capacity in 2013: 1,000 T/yr YungRay Capacity in 2016: 8,000 T/yr DST Sodium Starch Glycolate (SSG) YZC current sales: 2,000T/yr China Market: 2,000 T/yr Capacity in 2013: 1,000T/yr Target Market: China 16

17 PROJECT B Bio-Venture of YungRay Action Plan Preparation Plant Construction Production Plant Expansion Increasing Capacity ~ Stage I Stage II Stage III Stage IV JV Contract signed YungRay established (May, 2011) Plant construction started (July, 2011) Product line established (Dec.,2012 ) Product Launched in 2013 Versazyme Capacity in 2013: 1,000 T/yr DST Capacity in 2013: 1000 T/yr 2015: plant expansion 20,000 m 2 Versazyme Capacity expansion to 8,000T/yr 17

18 US Project C: ANDAs Abbreviated New Drug Applications 18

19 PROJECT C ANDAs -- Currently approved Appl. No Active ingredient Dosage form Remark ACYCLOVIR TABLET CEFACLOR CAPSULE CIPROFLOXACIN HYDROCHLORIDE TABLET DICLOFENAC SODIUM DR TABLET API sourced internally FAMOTIDINE TABLET FLUOXETINE HYDROCHLORIDE CAPSULE LOVASTATIN TABLET API sourced internally CEPHALEXIN CAPSULE MODAFINIL TABLET Paragraph IV CEPHALEXIN ORAL SUSPENSION MELOXICAM TABLET ZOLPIDEM TABLET GLIMEPIRIDE TABLET 19

20 PROJECT C ANDAs-Developing Pipeline (Niche & Vertically Integrated) Product code Submission Therapeutic class Target Approval 2010 US market sales (USD) Remark CDTe Q Antihypertension ,500,000 API sourced internally GNIe Q Antiemetics ,450,000 FRTy Q Calcium channel blocker VXTme Q Antiinflammatory & Antirheumatic ,115, ,082,000 API sourced internally MMTe Q Beta blocker ,215,477,000 API sourced internally KLTe Q Lipid modifying agent KBTe Q Prevent hyperphosphatemi a VRPe Q Antiinflammatory & Antirheumatic ,817, ,277, ,450,000 API sourced internally Niche dosage form EVTe Q Antivirals ,806,000 API sourced internally OSTe Q Anticholinergic ,407, Advanced process skills used

21 OUR REGIONAL ACTIONS CHINA Action 1: M&A of China-based Marketing firm Action 2: Patch Plant TAIWAN Action 1: M&A of TW-based Pharmacy Chain Action 2: Entering the Biopharmaceutical arena ASEAN Action 1: Veterinary Plant

22 M&A of China-based Marketing firm YungShin s Action 1 in China 22

23 YungShin s Action 1 in China M&A of China-based Marketing firm Product Portfolio In-house Products YungShin (TW) Products Other License-in Products Strengthen Marketing Platform (via M&A) Co-Marketing (Centralized BD, Promotion & Sale Policy) Direct Sale Regional Dealership 23

24 YungShin s Action 1 in China M&A of China-based Marketing firm Action Plan Project initiation M&A discussion & evaluation Marketing Alliance MOU signed Regional marketing alliance Co-Marketing Centralize BD, promotion & sale policy Marketing Platform established M&A M&A Action 24

25 Patch Plant YungShin s Action 2 in China 25

26 YungShin s Action 2 in China Patch Plant Construction & Product development Aspirations Build an world-class patch development and production organization in China Supply topical and systemic transdermal patch to both US(ANDA) and China Market Partner with Tainan-based patch manufacturer LiKang Co-development of patch products (on-going) Co- investment of new China Plant 26

27 YungShin s Action 2 in China Patch Plant Construction & Product development Action Plan Project initiation Environmental evaluation approved Facility Design Infrastructure Establish facility Install equipment Validation Validation (VRPe) Commercial Launched US China 1 st Product (VRPe) Development In Taiwan Formulation study Submission batch production Stability study BA/BE study USFDA and China SFDA submission VRPe site transfer to China plant Site transfer Supplemental ANDA filing 2 nd Product Development 2 nd product Launched Formulation study US Submission batch production in China Plant China Stability study BA/BE study USFDA and China SFDA submission 27

28 M&A of TW-based Pharmacy Chain YungShin s Action 1 in Taiwan 28

29 YungShin s Action 1 in Taiwan M&A of TW-based Pharmacy Chain YungShin Vertical Integration Channel Clinic YZC YSP HP TW Market API R&D Production Marketing Sales Drugstore Pharmacy Chain M&A Taiwan-based Pharmacy Chain Global Market: US/China/ASEAN/JP Global Market Global market 29

30 YungShin s Action 1 in Taiwan M&A of TW-based Pharmacy Chain Action Plan Project initiation M&A discussion & evaluation Marketing Alliance MOU signed Regional marketing alliance M&A process DD process M&A Action M&A Owning Pharmacies the number of store >100 30

31 Entering the Biopharmaceutical arena YungShin s Action 2 in Taiwan 31

32 YungShin s Action 2 in Taiwan Entering the Biopharmaceutical arena Licensing-in from Multinational Biopharmaceutical Company BS-1 (for treatment of neutropenia) BS-2 (for treatment of Non-Hodgkin's lymphoma) BS-3 (treatment of anemia in patients with chronic renal failure) BS-4 (to improve the look of moderate to severe frown lines between the eyebrows) 32

33 YungShin s Action 2 in Taiwan Entering the Biopharmaceutical arena Action Plan Initiate Collaboration intend discussion MOU signed. Clinical trial BS-1 product registration BS-1 product launch BS-1 product Clinical trial BS-2 product registration BS-2 product launch BS-2 product Clinical trial BS-3 product Clinical trial BS-4 product registration launch BS-3 product BS-3 product registration launch BS-4 product BS-4 product 33

34 Veterinary Plant YungShin s Action in ASEAN 34

35 YungShin s Action in ASEAN Veterinary Plant Action Plan ~ Plant Construction -Veterinary Plant Construction in Vietnam -RM30 million investment Production launched -started in April, Dosages: powder, particles & liquid -products focusing on antibiotics, deworming agent & animal multivitamin Specialized -Malaysia veterinary production totally transferred to Vietnam; -Malaysia focus on injection & eye-drops Commercial launched -50% for Vietnam Market; 50% for other countries in Southeast Asia 35

36 Conclusion Territory Expansion & Vertical Integration API RD Production Marketing Channel US CTI CTI CHINA API Sourcing Center FTR RD & Licensing Center YSK YungRay M&A Marketing Firm JAPAN JV with WAKAMOTO TAIWAN ASEAN YZC YSP/ATB YSP/YZC YSP YSP RD & Licensing Center YSPSAH YSPSAH Vietnam Veterinary Plant M&A Pharmacy Chain 36

37 Q & A 37

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