Shaping the future of diabetes care

Transcription

1 Shaping the futue of diabetes cae 1

2 Heino von Pondzynski Head of Roche Diagnostics 2

3 The idea Roche Diagnostics, the woldwide leade in Diabetes monitoing, and Disetonics, the woldwide numbe 2-playe in insulin pumps, want to combine thei know-how, and shape the futue of Diabetes management 3

4 Roche Diagnostics focusing on high value gowth aeas Leading Diagnostics company Boadest potfolio coveing all custome segments Stong gowth in high magin aeas Histoy of ceating new makets and shaping healthcae magin 5,367 CHF m +11 % gowth* (YTD Q3 02 vs. Q3 01) 1, ,908 % sales (% gowth*) Diabetes Cae 35 % (+15 %) Molecula Dx 14 % (+19 %) Applied Science 8 % (+8 %) Nea Patient Test g 8 % (+7 %) Centalized Dx 35 % (+8 %) * gowth in local cuencies 4

5 Stategic ationale Shaping the futue Diabetes Cae maket Expanding Roche Diagnostic s ole in the apidly gowing, pofitable maket fo Diabetes management Ceating a platfom fo additional gowth though enty into the attactive insulin pump maket Leveaging the Accu-Chek band and poven business models to a elated Diabetes business Leading the vision of ceating an automated panceas by combining blood glucose monitoing with insulin delivey technologies, and the know how of two leading companies 5

6 Roche Diabetes Cae Gaining maket shae - in blood glucose maket othes Abbott Baye Lifescan Roche est. Note: Othe includes Geneics, Pivate Label including Abbott s activities, KDK, Theasense, othe manufactues6 Souce: Roche analysis - Maket Shae Tacking 14 Key Counties

7 Diabetes: a poblem of epidemic popotion WHO global estimates of people with diabetes millions of people % CAGR % ae on insulin theapy Souces: WHO Repot / Zimmet, P. Et al. Global and societal implications of the diabetes epidemic, Natue

8 Blood glucose monitoing is 30 % of the oveall Diabetes maket 8.0 CHF 21.5 billion (2001) % glucose monitoing insulin delivey insulin oal antidiabetic Souce: Roche analysis theapy 8

9 Glucose monitoing and insulin delivey Combining to impove teatment outcome blood glucose monitoing* CHF 4.5 billion +10 % p.a. insulin theapy CHF 5 billion +5 % p.a. insulin delivey CHF 1.5 billion +11 % p.a. value dive: supeio teatment outcome * fo people with diabetes on insulin teatment stonge maketing position 9

10 Monitoing and theapy delivey ae conveging Disetonic s pump technology a key component Syinge Insulin Delivey Pens Pump Pump/ blood Glucose Mete Communication Open-loop Automated Panceas Blood Glucose Monitoing Stips Metes and Stips Integated Stips Systems Closed-loop Automated Panceas Insulin Algoithm Continuous Monitoing today futue 10

11 Roche adding maketing and sales muscle to penetate US maket Animas 1 % US maket 2001 Disetonic 17 % Medtonic/ Minimed 82 % non-us maket 2001 Disetonic 70 % total: CHF 160 m Medtonic/ Minimed 30 % total: CHF 550 m * top 13 counties total maket* 2001: CHF 710 million with appoximately 11 % gowth p.a. 11

12 Insulin delivey maket fa fom satuation Intensive insulin theapy gaining in acceptance Wold-wide > 200,000 pump uses Noth Ameica > 130,000 Euope > 60,000 Rest of wold max. 10,000 Pump theapy known and accepted in moe and moe counties Reimbusement envionment impoving Continuous glucose monitoing will incease maket potential fo pumps significantly 12

13 Enty into insulin pump maket Gowth oppotunities on many levels Incease maket shae in existing makets (e.g. US) Expand pump penetation in Euope Impoved sales of Roche Diagnostics cuent glucose monitoing systems with impoved access to endocinologists and high fequency testes Efficiencies in R&D due to coodination and steamlining of poject potfolio Geneating pump sales in counties othe than Noth Ameica and Euope 13

14 Willy Michel Founde and Chaiman, Disetonic 14

15 Disetonic, the wold s No. 2 in insulin pumps Double digit sales and pofitability gowth Disetonic Business HY 2002/ 03 vs HY 2001/ 02 consolidated total sales 157 million CHF (+13.6 % in local cuencies, +8.5 % in CHF) net pofit 29 m CHF (+35.5 %) eanings pe shae CHF (+34.6 %) aound 1,270 employees in EU and USA Injection Systems 24.1 % 75.9 % 2001/2002 sales mix Infusions Systems - sales 115 m CHF - up by +9.2 % (local) - global maket shae ~30 % 15

16 Infusion Systems Division: Insulin pumps Continuous insulin administation in accodance with individually pogammed equiement pofile Additional dosage possible at any time (e.g. mealtimes) Administation of insulin to the body via an infusion set 3 models: - H-TRONplus: The poven one - D-TRONplus: The innovative one - Dahedi: The disceet one 16

17 Business model with two elements binging pofitability Insulin pumps Consumables - glass and plastic catidges - batteies - caying systems - vaious infusion sets (cathetes changed 3-4 days) 17

18 D Eich Hunzike Chief Financial Office, Roche 18

19 Poposed tansaction stuctue Effected though two consecutive but concuent steps Disetonic Sales: 300 m CHF Infusion Systems Sales: 228 m CHF Injection Systems Sales: 72 m CHF Disetonic = 34 % o 0.66 million shaes committed by majo shaeholde = 61 % o 1.18 million shaes ae publicly taded Step 1: Public tende offe on 100 % of outstanding Disetonic shaes CHF 670 fo each Disetonic shae = 1.84 million x 670 CHF mm 2 GS* pe Disetonic Shae = 3.7 million GS 350 mm Total Offe mm Step 2: Sale of Injection business fom Disetonic to M. Michel 420 mm Net Cost to Roche afte consuming the tende offe mm 19 * Assumes Roche Genussscheine (GS) at 95 CHF pe shae

20 Valuation Shae development of Disetonic Aveage: 10 days CHF 536, 1 month CHF 557, 3 months CHF 563, 1 yea CHF CHF / Shae Offe 543 CHF Januay Apil July Octobe Januay

21 Tansaction multiples based upon the tende offe 01/ E EV/ Sales EV/ EBIT EV/ EBITDA

22 Outlook financials EBIT impact: slightly dilutive fo the Roche goup in 2003 and slightly accetive in 2004 dilutive fo Roche Diagnostics in 2003 and slightly accetive in 2004 Oveall, guidance fo the Roche Goup and Diagnostics unchanged 22

23 Public tende offe on Disetonic shaes Timing / next steps Pe-announcement (Voanmeldung) Febuay 10 Copoate due diligence Febuay - Mach Disetonic Extaodinay shaeholde meeting Mach Publication of tende offe Mach 24 End of fist offe peiod (20 bank days) Apil 22 Announce inteim esults of tende offe End Apil Closing May - June 23

24 Appendix

25 About Roche Diabetes Cae Pionee in the development of blood glucose monitoing systems Sales and gowth Q3 02 (vs. Q3 01) 1.86 m CHF, +15 % (local) Maket Shae* 2002E: 37 % Main poducts: Accu-Chek Advantage Accu-Chek Active Accu-Chek Compact Accu-Chek Active Accu-Chek Advantage * Estimate based on Q1-Q Accu-Chek Compact

26 Disetonic who they ae A leading global supplie of medical devices and systems fo the administation of liquid medication fo ambulatoy theapies The wold s No. 2 in insulin pumps fo the teatment of diabetes and the lagest independent manufactue of injection pens fo vaious theapies 26

27 Diabetes is not cuable, but it is manageable Detect diabetes at an ealy stage and teat it coectly Type I (10 %) insulin theapy Type II (90 %) insulin, oal, execise, diet etc... Blood glucose levels fo people with diabetes ae geneally too high and subject to exteme fluctuations Insulin is lacking o completely unavailable o it is available but not sufficiently effective Insulin theapy: measue blood glucose levels egulaly detemine insulin equiement administe insulin 27

28 Blood glucose monitoing maket Sustained double digit gowth CHF million 16'000 14'000 12'000 10'000 8'000 6'000 4'000 2' ,250 local CAGR = 14% CAGR = 11 % 4,845 5,765 6,465 9,500 CAGR = 10 % 15, local gowth 14 % 14 % 12 % Note: Souce: includes, lancets, diabetes uine testing, othe Roche analysis 28