HIKMA PHARMACEUTICALS PLC. J.P. Morgan 29 th Annual Healthcare Conference San Francisco, CA

Transcription

1 HIKMA PHARMACEUTICALS PLC J.P. Morgan 29 th Annual Healthcare Conference 2011 San Francisco, CA

2 This document, which has been issued by Hikma Pharmaceuticals PLC (the Company ), comprises the written materials/slides for a presentation. This document and its contents are confidential and may not be reproduced, redistributed or passed on, directly or indirectly, to any other person or published, in whole or in part, for any purpose without the consent of the Company. This document is intended for distribution in the United Kingdom only to persons who have i) professional experience in matters relating to investments t who fall within Article 19(5);orii) high h net worth companies or unincorporated associations falling within Article 49, in each case of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 or to those persons to whom it can otherwise lawfully be distributed. The contents of this presentation are only available to such persons and any persons of any other description should not act upon the contents of this document or any other information supplied with it. This document does not constitute an offer to sell, or the solicitation of an offer to subscribe for or buy, any shares in the Company to any person in any yjurisdiction to whom it is unlawful to make such offer or solicitation in such jurisdiction, nor shall it or any part of it nor the fact of its distribution form the basis of, or be relied on in connection with, any contract or investment decision in relation thereto. Some of the information is in draft form and has not been legally verified. Neither the company nor any party is under any duty to update or inform you of any changes to such information. In particular, it should be noted that the financial information relating to the Company contained in this document may not have been audited and in some cases is based on management information and estimates. No reliance may be placed for any purposes whatsoever on the information contained in this document or on its completeness. No representation or warranty, express or implied, is given by or on behalf of the Company or any of such persons affiliates, directors, officers or employees, advisors or any other person as to the accuracy or completeness of the information or opinions contained in this document and no liability whatsoever is accepted for any such information or opinions or any use which may be made of them. Neither this document nor any copy of it may be taken or transmitted in or into the United States, its territories or possessions, or to any US person (as defined by Regulation S of the US Securities Act of 1933 (the Securities Act )) or distributed, directly or indirectly, in the United States, its territories i or possessions or to any US person. Neither this document nor any copy of it may be taken or transmitted in or into Australia, Canada or Japan or to Canadian persons. Certain statements in this presentation, are forward-looking statements under the US federal securities laws, including the Private Securities Litigation Reform Act of By their nature, forward-looking statements involve a number of risks, uncertainties and assumptions that could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements. These risks, uncertainties and assumptions could adversely affect the outcome and financial effects of the plans and events described herein. Forward-looking statements contained in this presentation regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. The Company does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. You should not place undue reliance on forward-looking statements, which speak as only of the date of this presentation. By participating in or listening to this presentation or by accepting any copy of this document, you agree to be bound by the foregoing limitations. Page 1

3 Jason Grenfell Gardner Jason Grenfell-Gardner Senior Vice President Sales & Marketing

4 Continuously delivering strong growth Group revenues ($ million) 600 Acquired Ribosepharm and Thymoorgan (Germany) in H Acquired Alkan (Egypt) and APM (Jordan) in H Acquired Ibn Al Baytar/ Medicef In Tunisia Acquired Dar Al Arabieh in Algeria HIKMA established in Jordan. Licenses from Fujisawa Japan West-ward (US) acquired Hikma Farmaceutica (Portugal) established Began manufacturing operations in Trust Pharma Algeria. Acquisition iti of the 52.5% 5% of JPI not previously owned by Hikma Started operations at Jazeera Pharmaceutical Industries (JPI) in Saudi Arabia) Became public company listed on LSE. Acquired Hikma Italy. Hikma Pharma (Holding Co) established in Jersey. Acquired majority interest in clinical pharma research lab (IPRC) Page 3

5 Our network of high quality manufacturing facilities 17 manufacturing facilities in 9 countries -5 FDA approved Cost-effective R&D and manufacturing Ribosepharm GmbH, Germany Thymoorgan GmbH, Germany West-ward USA Hikma Farmaceutica, Portugal Hikma Italia Hikma Pharma, Algeria Ibn Al Baytar, Tunisia Hikma Pharma, Egypt JPI*, Saudi Arabia APM*, Jordan Hikma Pharmaceuticals, Jordan Hikma Chemicals, Jordan * JPI refers to Jazeera Pharmaceutical Industries and APM refers to Arab Pharmaceutical Manufacturing R&D Centres Manufacturing Plants Page 4

6 Revenue by segment and region H revenue by segment H revenue by region 54.2% 61.0% 24.4% 28.0% 0.6% 20.8% Branded Generics Injectables Other 11.0% MENA US Europe & ROW Page 5

7 Branded Underlying market growth drivers remain intact Rank Unit sales (million) Value $ m Avg Rx Value Value Market $ Growth share MENA PRIVATE MARKET 1, , % SANOFI-AVENTIS % 9.1% GLAXOSMITHKLINE % 7.9% NOVARTIS % 5.8% PFIZER % 5.6% HIKMA PHARMA % 3.7% MERCK & CO % 32% 3.2% ASTRAZENECA % 2.7% SPIMACO % 2.5% BAYER % 2.0% SERVIER % 1.8% Source: IMS Health YTD 06/2010. Private retail sales for top 9 MENA markets. Page 6

8 Branded Licensing partner of choice ce for the MENA region Improving our market share of key in-licensed products Partnering with Celltrion for the MENA region - Differentiates Hikma as a biotechnology company - Access to rich pipeline of nine biosimilars - Expected EMA regulatory approval - Ability to learn biotechnology -Allows Hikma to shape and lead MENA biosimilar regulatory process Source: IMS Healthcare YTD6/2010

9 Generics Strong gperformance driving market share gains Better than expected performance from MAT MAT YTD core product portfolio 01/ / /2010 US generic market growth +9.5% +7.2% +6.7% Additional opportunities to increase market share in certain products Hikma (West-Ward) growth +23.4% +37.7% +37.1% Service level improvements reinforce quality reputation Hikma rank #20 #17 #14 Hikma market share 1.1% 1.4% 1.7% Capacity increases improve our ability to supply/meet market demand Continuing to leverage our global manufacturing platform Page 8 Source: IMS Health. Number of prescriptions filled in the US Generics market for oral pharmaceuticals.

10 Injectables Sales by region H Injectables revenue by region 17.4% 40.0% 42.6% MENA US Europe & ROW Page 9

11 Injectables Strong gpoe potential for continued uedoga organic cgo growth in MENA Five products launched in H1, 11 expected in H2 Strong sales in Algeria, Sudan and Libya Good progress in development of oncology franchise MENA oncology portfolio as of June 2010 Significant opportunities remain in Egypt Launched in H1 Submitted in H and Syria Epirubicin Iraq, Syria - Iraq market developing quickly Gemcitabine Lebanon, Libya Iraq, Syria Vinorelbine Iraq, Syria Irinotecan Yemen, Libya Lebanon Zoledronic Acid Imatinib Lebanon Jordan Page 10

12 Injectables Our growing g injectables business in the US Fast growing portfolio of ANDAs Total injectable products marketed in the US Strength in R&D and regulatory affairs -Over 27 total pending approvals 25 Continuous growth in sales and market 10 8 share H Page 11

13 Transforming our global Injectables business

14 Transaction highlights - A significant opportunity Acquisition of Baxter Healthcare Corporation s US generic injectables business* for a cash consideration of $112 million Brings close to $180 million in annual revenue, significantly enhancing the scale and scope of Hikma s global Injectables platform Adds a high-quality, complementary injectables portfolio Positions Hikma as the second largest injectables supplier in the US Earnings accretive in the first full year excluding one-off off transaction costs Financial flexibility for further acquisitions maintained * Multi-Source Injectables 13

15 Brings scale to our Injectables business and our US operations Hikma 2009 standalone revenue by segment Hikma 2009 pro-forma revenue by segment Generics 21% Generics 17% Injectables 23% $636.9 million Branded $ million 55% Injectables 39% Branded 44% *Multi-Source Injectables reported revenue of $169.7 million and adjusted EBITDA of $14.5 million in

16 Brings scale to our Injectables business and our US operations Hikma 2009 standalone revenue by geography Hikma 2009 pro-forma revenue by geography Europe 13% US 24% US 40% $636.9 million $ million MENA 64% MENA 50% Europe 10% 15

17 Positions Hikma as the second largest generic injectables supplier in the US Top US generic injectables companies (mn eaches) DEA controlled substances market share (units) 100% % #2 15.7% 14.4% 13.3% 5.2% 4.9% 4.0% 4.0% 2.1% 1.4% 1.3% 1.2% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% HOSPIRA MULTI SOURCE SOURCEINJECTABLES OTHERS Strength in niche categories - #2 in DEA controlled substances #2 in overall injectables Source: IMS Health MAT 6/2010. Internal research. Eaches represent individual vials. 16

18 Improves access to a large, expanding market with substantial revenue opportunity US injectables market sales growth Upcoming injectables patent expiries $bn $5.0 $bn $4.5 $4.1 $4.0 $3.0 $3.0 $3.2 $3.9 $4.0 $3.5 $3.0 $2.5 $2.2 $3.1 $2.6 $2.0 $2.0 $1.5 $1.5 $1.4 $1.0 $1.0 $0.5 $ e $ e 2011e 2012e 2013e 2014e 2015e Source : IMS Health MAT 4/2010. Internal research 17

19 Adds a high quality, complementary injectables portfolio Top therapeutic areas Hikma Multi-Source Injectables Pro-forma Antibiotics Anti-cholinergics Anti-convulsants Anti-emetics Anti-hypertensive Anti-psychotics Cardiac Agents CAN Agent Diuretics Hematological Agents Histamine Antagonists Muscle Relaxants Narcotics/Pain Management Phenothiazines Reversal Agents and Antidotes Sedative Hypnotics Combined product portfolio consists of ~60 products and over 180 dosage strengths and forms 18

20 Increases Hikma s high quality injectables manufacturing capacity and distribution capabilities Cherry Hill facility Ampoules Vials 372,000 sq. ft. facility in Cherry Hill, NJ Manufacture of sterile injectables High speed/high volume liquid filling Ampoules Small Vials Large Vials Automated inspection, labelling and packaging Products Current Ttl Total utilisation capacity DEA registered and compliant Ampoules 11.6 m/year 57.5 m/year Vials m/year m/year Excellent track record with FDA 100,000 sq. ft. distribution centre in Memphis (Southpoint), t) TN 19

21 Brings a well qualified and experienced sales team with excellent customer relationships First class team of more than 20 sales professionals will complement Hikma s existing sales team and deepen territory coverage Existing contracts cover 80% of all hospital based pharmaceutical purchases in the US Excellent relationships with leading wholesalers ensure product availability and contract compliance Scope to increase the revenue potential of Hikma s existing product portfolio and pipeline 20

22 Synergy opportunities Cost synergies Revenue synergies Operating efficiencies through centres of excellence Greater manufacturing and distribution capacity utilisation Scale benefits Enhanced supply chain and resource allocation Increased sales and marketing capabilities Reactivation of several ANDAs Enhanced potential of R&D pipeline Opportunity to introduce certain products in Europe and MENA 21

23 Transaction summary Transaction structure Transaction price Funding PPE, inventory, intellectual property and existing contracts Consideration of $112 million, satisfied in cash Existing cash resources and new debt facilities Synergies Scope for revenue and cost synergies Accretion Leverage Earnings accretive in the first full year excluding one-off transaction costs Retain flexibility for further acquisitions 22

24 A transformational deal Significantly enhances the scale and scope of Hikma s global Injectables platform, bringing a broad product portfolio and best in class manufacturing facilities More than doubles the size of Hikma s overall US business, adding scale and strengthening Hikma s market position Enables Hikma to retain sufficient i financial i flexibility to acquire additional assets across its businesses and geographies Supports Hikma s vision of creating long-term success through a diversified business model 23