Sinclair IS Pharma plc Investor Presentation. April 2012

Transcription

1 Sinclair IS Pharma plc Investor Presentation April 2012

2 Disclaimer The contents of this presentation and the information which you are given at the time of these slides and the presentation have not been approved by an authorised person within the meaning of the Financial Services and Markets Act 2000 (the Act ). Reliance on this presentation and its slides for the purpose of engaging in investment activity may expose an individual to a significant risk of losing all of the property or other assets invested. This presentation does not constitute or form part of any offer for sale or subscription or solicitation of any offer to buy or subscribe for any securities in Sinclair IS Pharma Plc (the Company ) nor shall it or any part of it form the basis of or be relied on in connection with any contract or commitment whatsoever. No reliance may be placed for any purpose whatsoever on the information contained in these slides or presentation and/or opinions therein. These slides and the presentation are exempt from the general restriction (in section 21 of the Act) on the communication of invitations or inducements to engage in investment activity on the grounds that it is made to:(a) persons who have professional experience in matters relating to investments who fall within Article 19(1) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the Order ); or (b) high net worth entities and other persons to whom it may otherwise lawfully be communicated, falling within Article 49(1) of the Order (all such persons together being referred to as relevantpersons ). Any person who is not a relevant person should not rely on this presentation or any of its contents and all persons (whether relevant persons or otherwise) are recommended to seek their own independent financial advice from a person authorised for the purposes of the Act beforeengaging in any investment activity involving the Company s securities. This presentation includes certain forward-looking statements with respect to certain development projects, potential collaborative partnerships, results of operations and certain plans and objectives of the Company including, in particular and without limitation, the statements regarding potential sales revenues from products, both currently marketed and under development, possible launch dates for new products and line extensions, andany revenue and profit guidance. By their very nature forward-looking statements involve risk and uncertainty that could cause actual results and developments to differ materially from those expressed or implied. The significant risks related to the Company s business which could cause the Company s actual results and developments to differ materially from those forward-looking statements are discussed in the Company s annual report and other filings. All forward-looking statements in this presentation are based on information known to the Company on the date hereof. The Company will not publicly update or reviseany forward-looking statements, whether as a result of new information, future events or otherwise. 2

3 Group at a glance Key Markets DERMATOLOGY Europe Emerging Markets WOUND CARE Europe Emerging Markets CRITICAL AND SUPPORTIVE CARE Europe Top Products Atopiclair Sebclair Papulex Flammazine Kelo-cote Flammacerium Aloxi Variquel 2011 Revenue 2014 Revenue Target* Emerging Markets 28% Emerging Markets 40% Europe 72% Europe 60% 3 *Target not guidance

4 Brand Development: Recognisable Sinclair IS graphic 4 4

5 Fully integrated platform drives operating leverage Fully integrated Sales and marketing Logistics, supply and manufacturing Regulatory and compliance Quality and Pharmacovigilance Product and brand development Finance function Resources focused on developing and extending growth brands Sales and marketing budget doubled from 7.8M 2009 to 15M 2012 Complementary in-licensing opportunities and brand acquisitions Create multi-product/ country partnerships outside the EU Divest non-core brands, reduce SKUs and number of distributors 5

6 Distribution: Congruent channels HOSPITAL Variquel /Haemopressin Aloxi episil Xclair Well balanced portfolio focused on three key specialty areas: Dermatology Wound care Critical and supportive care Diversified product offering Sales driven by own specialist sales force Flamma franchise Kelo-cote DERMATOLOGIST Sebclair Bio-Taches Fazol Atopiclair Papulex Fadiamone PHARMACY Aloclair Decapinol No large near term patent cliffs 6

7 Key Brands: Growth and concentration 60% 50% 40% 30% 20% 10% 0% Leading five products % of total sales 29% FY 09 49% FY12e Growth of leading five products vs. previous year m % Core brand performance (1H/12 growth, FY12e revenues) +51% +19% -8% +119% -4% +122% 25% 23% 20% 15% 7 10% 5% 0% 5% FY09 FY12e

8 Geographic reach Direct sales in top EU markets 20 year partnership with Invida for multiple markets Exploring additional partnerships for other major emerging markets Direct Sales and Marketing Operations Distributors - existing 8 Distributors - Invida Distributors - recent Fast growth target markets

9 Asia: Invida delivering Products launched already Atopiclair and Papulex already launched in eight markets Flammazine re-launched in The Philippines Multiple launches scheduled for 2012, including Xclair, Sebclair and others First Chinese launch expected in 2013 Improved economics post 2013 Focus on brand creation, but requires resources Deal structure guarantees minimum launch spend. Budgeted spend is considerably in excess We expect partnership to drive Sinclair IS earnings growth over medium term Local Asian office structure provides filing and launch infrastructure Dedicated regulatory affairs resources for both companies Sinclair IS employee based full-time in Invida s Singapore head-office Production in India (Encube PTE) already started, initially for local market Menarini acquisition of Invida has increased sales and marketing spend 9

10 10 Strategic Partners: Fewer, stronger relationships

11 Executing Strategy: Recent progress Deals Partnerships Product launches Acquisition of ABT and Ex-US rights of Kelo-cote (Dec 11 ) Disposal of Mysoline (Nov 11) Merger with IS Pharma (May 11) Acquisition of Kelo-cote (UK & Germany) (Dec 10) Acquisition of Terbinafine Spray (Worldwide rights) (Nov 10) Fannin Limited (Ireland) (Oct 11) AMS (Delm opinal option and licence) (Aug 11) Invida India (March 11) Invida (multi-product, Asia Pacific ) (Dec 10) Sunstar (Decapinol for US) (Dec 10) Invida Atopiclair & Papulex in 11 Asian markets (March 12) FlammaSpray Spain (March 11) Germany (March 12) Bio-Taches Serum, in 5 MENA Countries (Q1 12) Kelo-cote France, Italy, Spain (Feb 11) 11

12 Improving financial performance Annual revenues excluding one-off licence income m 15% 10% Lfl Sales improvement 11% 9% % FY09 FY10 FY11 0% -5% -10% H/12-5% -2% FY'09 FY'10 FY'11 1H FY12 FY'12e* LfL sales growth -5% -2% +11% +9% >9% EBITDA - 3.8m - 2.6m - 1.3m n/a + 4m- 5m *'Analysts' estimates LfL excludes product acquistions and disposals, licence fees and currency fluctuations 12 Interim Results 2012 Like-for-like revenues increased by 9% International operations +41% H1 margin increased to 58.1% from 55.8% EBITDA of 0.7 million, first sustainably profitable period Net debt /Shareholders funds 6%

13 Brand Development: Flamma Sterile topical creams for: the prevention and treatment of infection in burn wounds Short-term treatment of infection in leg ulcers and pressure sores The prevention of infection in skin graft donor sites and extensive abrasions Small dedicated sales force Growth strategy Launch of FlammaSpray (sunburn, 3/11) FlammaGel (household burns, FY13) Flammacerium in MENA, UK and other territories (severe burns, FY14) Flammacerium (diabetic foot ulcer, FY15) 20% 10% 0% -10% Flamma franchise Growth rate 5% 17% 12/09 1H/12 1H/12 excl Algeria -5% 13

14 Brand Development: Kelo-cote Patented topical silicone gel range for the prevention and management of abnormal scars Available both in prescribed and over the counter formats Launched in FY11 in Spain, France, Italy. Re-launched in UK Large and rapidly growing market Silicone recommended as the first-line treatment for scar management Grow the brand through entry into new territories (LATAM, Russia, Eastern Europe, Turkey, Asia) developing line-extensions (Kelo-cote Stretchmarks FY12) 14

15 Conclusion Strong revenue growth, particularly International Fully integrated platform drives operating leverage Emerging markets via key partnerships drives premium growth Invida delivering Multiple additional opportunities, including expected LATAM partnership Licensing opportunities and brand acquisitions Low risk pipeline focused on developing and extending existing brands 15

16 16 Appendix

17 Key brands Product 2011 Sales H1 12 Sales TOP FIVE PRODUCTS Type Indication LFL Growth H1 12 Flammazine 8.2m 4.0m Drug Wound care +5%* Kelo-cote 0.9m 0.7m Medical device Scar reduction +51% Variquel / Haemopressin 3.8m 2.5m Drug Bleeding oesophageal varices +19% Aloclair 3.8m 1.4m Medical device Oral Pain relief -8% Fazol 2.7m 1.3m Drug Topical anti-fungal -4% Product 2011 Sales H1 12 Sales Focus Brands Type Indication LFL Growth H1 12 Papulex 1.4m 0.7m Cosmetic Acne +7% Atopiclair 0.9m 0.5m Medical device Eczema +119% Sebclair 0.7m 0.6m Medical device Seborrheic Dermatitis +122% Aloxi 1.2m 0.5m Drug CINV -4% 17 *+17% excluding Algeria

18 Pipeline summary Product Indication Timing Comment DERMATOLOGY BIOTACHES Serum & UV50 Hyperpigmentation H Adds strength to the range and brand for MENA distribution PAPUDUO Acne 2013/14 First anti-biofilm acne treatment KELO-COTE Stretchmarks Stretchmarks Q Ready for launch. Good scientific rationale and evidence KELO-COTE line extension Scar reduction 2014 Spray and gel with new actives for enhance wound healing and scar control TERBINAFINE SPRAY Athlete's Foot 2014/15 Proprietary slow release patch applied to brand leader's API DELMOPINOL DECAPINOL Plaque blocking Launched Q OTC "GUM" brand by Sunstar Butler. Line extension programme DELMOPINOL Dog chew Q Royalty deal, licensee has worldwide rights. High risk. DELMOPINOL Wound care 2013 Internal/external (AMS option commenced 2011) FLAMMA FRANCHISE FLAMMASPRAY Sunburn Launched Q Trademark leverage FLAMMAGEL Household burns Q Trademark leverage FLAMMACERIUM Diabetic foot ulcer 2014/15 Off-label Flammazine experience indicates likely efficacy 18 18

19 Income Statement: Strong revenue increase 'm H1 FY12 H1 FY11 Revenue Cost of sales (9.8) (6.3) Gross profit Sales & marketing (7.8) (5.3) R&D/RA (1.4) (1.1) G&A (3.7) (2.7) Amortisation & depreciation (2.5) (1.7) Share based payments (0.5) - Pre-exceptional operating loss (2.3) (3.0) Finance costs (0.6) (0.5) Loss before tax (2.9) (3.5) Pre-exceptional EBITDA 0.7 (1.3) Revenue increase of 67% over H1 11 H1 margin increased to 58.1% from 55.8% Significant investment in sales & marketing, in particular in the UK Continued investment in R&D/RA G&A increase following IS Pharma merger EBITDA of 0.7m, first sustainably profitable period Amortisation increased from IS Pharma intangibles Share based payment expense from VCP established in May 11 19

20 Balance sheet 20 'm Dec-11 Jun-11 Goodwill Intangible assets Property, plant and equipment Non-current tax assets Other non-current assets Non-current Assets Inventories Trade and other receivables Cash in blocked account Cash and cash equivalents Current Assets TOTAL ASSETS Borrowings (3.8) (2.8) Trade and other payables (15.0) (16.2) Deferred consideration (2.4) (4.3) Provisions (0.5) (0.4) Current tax liabilities (0.3) - Current Liabilities (22.0) (23.7) Borrowings (11.1) (7.1) Deferred tax liabilities (7.2) (7.4) Deferred consideration (2.5) (2.6) Other non-current liabilities (0.4) (0.5) Provisions (0.7) (0.3) Non-current liabilities (21.9) (17.9) TOTAL LIABILITIES (43.9) (41.6) NET ASSETS ABT adds 20m to intangibles as well as inventory of 0.7m and receivables 1.1m Inventory reduced from June due to Fannin, Mysoline sale and FX variance but partially offset by ABT impact Receivables reduced by underlying 3.3m due to seasonality of sales Borrowings increased by 6.5m Clydesdale draw for ABT Deferred consideration reduced by 1.3m Helsinn (HBT) payment in December and positive FX impact on Variquel royalty liability

21 Cash flow: Efficient recycling of capital 'm H1 FY12 H1 FY11 Cash flow from operations (0.1) (2.5) Sale of Mysoline Acquisition of ABT (16.7) - Other investing (2.0) (2.3) Investing activities (7.6) (2.3) Loan draw down Equity issues Debt repayments (1.2) (13.0) Other Release of blocked funds Financing Benefit of IS merger seen in H1 operating cash flow Mysoline proceeds recycled into acquisition of ABT Investing activities include settlement of deferred consideration for HBT - 1.3m and limited capex Additional draw on Clydesdale facility to complete ABT acquisition Net debt of 7.3m at December 2011 Net cash flow (0.5) 1.5 Cash b/f Cash c/f

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