Carnegie Healthcare Conference. March 12, 2014

Transcription

1 Carnegie Healthcare Conference March 12,

2 Meda - overview A leading specialty pharma company: 48th largest pharmaceutical company 15th largest specialty pharma company Own sales organization in close to 60 countries Meda s products are sold in more than 120 countries Around 3,000 employees New executive committee 2

3 2013 summary A turning point for our business: +4% organic growth Sales of SEK 13.1 billion Increase driven by Dymista, Emerging Markets and OTC Continued investments to build a stronger Meda Increased Operating expenses by ca. SEK 300 million EBITDA margin of 28.5% (30.4%) Strong free cash flow generation Free cash flow in line with last year at ca. SEK 2.7 billion A number of strategic achievements: Sharpened focus: efforts prioritized towards dermatology, respiratory / allergy and OTC Dymista launched in Europe capturing market share Two acquisitions: Acton (Aerospan) and ZpearPoint (EB24), near term commercialization 2014 and

4 Key value drivers Key growth businesses Allergy / respiratory: Dymista and launch of Aerospan Dermatology: Elidel and roll-out of Zyclara Market growth for SB12 Emerging Markets: continued growth Well-balanced portfolio Base business Ca brands / products across 120 geographies No product contributing more than 6% of sales Continued focus on EBITDA profitability and good cash flow generation Acquisitions M&A to support our strategic direction Key therapy areas Geographic footprint/expansion Bolt-on acquisitions Strong cash flow creates headroom for M&A 4

5 Key growth businesses

6 Unmet medical need in allergic rhinitis Dymista is the drug of choice 1 2 There is a need for something better among 80 million allergic rhinitis sufferers worldwide 33% Dymista Aeorospan Elidel Zyclara SB12 Shift to moderate or severe allergic rhinitis 67% Moderate or severe Mild Most moderate to severe allergic rhinitis patients use multiple treatments Emerging Markets Dymista is the drug of choice Up to three times more effective than fluticasone ( gold standard in US) Nasal and ocular symptoms Nasal congestion Ocular itching Substantial symptom relief: 6 days faster Symptom episode 12.5 days Premier position endorsed by academia 29% Moderate to severe patients on 2 or more medications 71% Moderate to severe allergic rhinitis patients on 1 medication 6

7 Dymista Aeorospan Elidel Zyclara SB12 Optimization of sales force Emerging Markets and we want to make sure we can exploit Dymista fully Will visit more doctors than last year Targetting specialists and GPs ~ 1 /3 of all prescriptions Positioned to take advantage of entire season 7

8 Dymista Aeorospan Elidel Zyclara SB12 Emerging Markets Dymista is well received by prescribers and patients alike A successful launch (Market share by country, value) Ireland: > 24% Germany: > 10% Austria: > 6% Finland: > 5% Sweden: > 4% Italy: > 4% USA: > 3% Norway: > 3% UK: > 2% Footnote: Market share Dymista versus intranasal corticosteroid market in value. Source: IMS at 27 February,

9 Dymista Aeorospan Elidel Zyclara SB12 Aerospan to be launched in Q2 Emerging Markets 1 2 Aerospan will be favourably positioned on its own merits Convenience: One and only product with portable and built-in spacer Impact: Highest lung deposition among all products works where it should Safety: Good systemic and local safety profile E.g. no impact on growth velocity Overlap and synergies in marketing with Dymista Focus on prescribers High volume prescribers of inhaled corticosteroids and nasal sprays Key targets: Allergists Pediatricians Pulmonologists Also, primary care physicians 9

10 Dymista Aeorospan Elidel Zyclara SB12 Emerging Markets New study represents a breakthrough 1 100% 90% 80% 70% 60% Elidel is as good as topical corticosteroids Patients with treatment success 2 3 and new treatment combined with other algorithm published by clinical advantages leading experts Elidel advantages over topical corticosteroids: No thinning of skin No increased risk of cataract / glaucoma No teleangiectasia No delayed wound healing No other skin changes (e.g., rosacea, strie) 50% 40% No increased receptiveness to infections Topical corticosteroids Elidel 10

11 1 Zyclara is a follow-up treatment of market leader Aldara for actinic keratosis 350 Dymista Aeorospan Elidel Zyclara SB12 Aldara enjoys #1 market position Sales in Europe (SEK million) - IMS MAT 6/13 2 Emerging Markets and Zyclara represents an improvement Imiquimod: Diclofenac: Aldara Solaraze 5-ALA: Metvix + Ameluz 5FU: Efudix 5FU: Actikerall Ingenol: Picato Expected to set standard in actinic keratosis treatment 11

12 Dymista Aeorospan Elidel Zyclara SB12 Emerging Markets Near term focus on market growth based on a proven positioning formula Brand Preference Product Positioning Above the line Point of sales Professional Digital marketing Public Relations Visits to retailers Pharmacies Drug stores Grocery chains Conferences for specialists 12

13 Dymista Aeorospan Elidel Zyclara SB12 Emerging Markets Double digit annual growth in Emerging Markets 30% Sales growth (fixed exchange rates) 2011: +19% 2012: +15% 2013: +11% 25% 20% 15% 10% 5% 0% Q Q Q Q Q Q Q Q Q Q Q Q

14 Dymista Aeorospan Elidel Zyclara SB12 Top 5 countries > 50% of Emerging Markets with good profitability Net sales (SEK million) Emerging Markets Russia Turkey Middle East CIS Mexico 14

15 Financial highlights CFO Henrik Stenqvist

16 Top line organic growth, good profitability in light of efforts made (SEK million) Net sales Growth 1% 1% Organic growth 4% 0% Gross profit Margin 61% 61% Operating expenses EBITDA Margin 28.5% 30.4% Net financial items Tax Net profit EPS (SEK) Denotes key highlights Footnote: 1. Including a positive non-recurring effect of SEK 179 million in Q due to a reduction in the Swedish corporate tax rate 16

17 Despite lower EBITDA, free cash flow in line with last year stronger free cash flow conversion (SEK million) % 70% Free cash flow conversion (%) 68% 72% % % % % EBITDA Free Cash Flow 17

18 SEK 15.0 billion in Net debt 4.1x EBITDA in Q4 2013, capacity for M&A increases going forward 16,0 14,0 12,0 10,0 8,0 6,0 4,0 2,0 4.1x ,5x 4,0x 3,5x 3,0x 2,5x 2,0x 1,5x 1,0x 0,5x 0,0 Q Q Q Q Q Net debt (SEK Bn) Net debt / EBITDA (x) 0,0x 18

19 Guidance 2014 For 2014 we foresee continued good organic growth in line with 2013 and improved EBITDA margin Key drivers: Dymista, increased sales in USA and Europe Emerging Markets, continued strong growth In-market sales growth for CB12 Aerospan launch in the US (Q2 2014) Elidel, further growth supported by new studies and publications Roll-out of dermatological products Zyclara and Acnatac 19

20 Q&A

21 Disclaimer Statements included herein that are not historical facts are forwardlooking statements. Such forward-looking statements involve a number of risks and uncertainties and are subject to change at any time. In the event such risks or uncertainties materialize, Meda s results could be materially affected. The risks and uncertainties include, but are not limited to, risks associated with the inherent uncertainty of pharmaceutical research and product development, manufacturing and commercialization, the impact of competitive products, patents, legal challenges, government regulation and approval, Meda s ability to secure new products for commercialization and/or development and other risks and uncertainties detailed from time to time in Meda AB s interim or annual reports, prospectuses or press releases. 21