BioGaia a healthcare company working with probiotics

Transcription

1 BioGaia presentation March

2 BioGaia a healthcare company working with probiotics BioGaia s vision is to improve the health of people around the world by offering first class probiotic products. BioGaia s bussines concept is to develop, market and sell well documented probiotic products worldwide in the form of innovative and appealing dietary supplements and food products. 2

3 BioGaia AB Founded in employees Officies in Stockholm, Lund, Eslöv, Raleigh, Hiroshima, Shanghai Listed on the OMX Nordic Exchange in Stockholm 1998 Products in 85 markets through distributors Contract manufacturing (TwoPac AB 100% owned) Holds 300 patents in 27 families 3

4 Change of focus Oral Health Dietary Supplements Infant formula Functional Foods / Dairies Animal Health

5 BioGaia s global network Partners Pharma and Health Food companies BioGaia Product development, product strategies, research, Quality, market support Research Pre-clinical and clinical studies in hospitals and universities BioGaia Universities and hospitals where research is conducted. Manufacturing and Production Partners selling component products Partners selling finished goods 5 Suppliers Contract Manufacturing

6 Business model three networks Distribution partners Sales force Pharmacies Physicians Product development Innovation & IPR Product strategies Research Quality systems Marketing support Indications Clinical Research Preclinical Food supplements Production Probiotic cultures 6

7 Distribution partner network Local distributors with medical representatives who promote to health professionals Dietary supplement BioGaia BioGaia brand Sales through Pharmacies

8 Bran Brand Branding for Health professionals Sold in 50 countries 55% of sales of finished products (incl. cobranding) Build value, less dependence on distributors and patents 8

9 Competition Strategy Clinical trials of high quality Attractive and unique formulations and packaging solutions Strong partner support 9

10 Clinical trials supporting the use of BioGaia Probiotics with L. reuteri including the strains L. reuteri Protectis, Prodentis and Gastrus Completed clinical trials Dec trials in 9300 individuals whereof: o 85 randomised, double-blind / blind, placebo-controlled studies in 7400 subjects o 35 open studies in 1900 subjects o 37 studies in 0-3y in 4300 subjects Results are published in 85 scientific articles and 7 doctoral theses

11 BioGaia food supplements Ownership of over 50 Lactobacillus reuteri strains Current commercial strains BioGaia ProTectis Strain: L. reuteri DSM (revised 55730) BioGaia ProDentis Strain: L. reuteri DSM and L. reuteri ATCC PTA 5289 BioGaia Gastrus Strain: L. reuteri DSM and L. reuteri ATCC PTA

12 Efficient BioGaia probiotics Functional gastrointestinal disorders Colic Regurgitation Constipation Functional abdominal pain Acute gastroenteritis Support of gastrointestinal health Antibiotic-associated side-effects Hp-infection Eradication treatment associated side-effects Gingivitis Periodontitis 12

13 Colic studies with L. reuteri Protectis Szajewska p=0.8 Placebo (n=40) L. reuteri Protectis (n=40) Reduction in median crying time after 21 days p=0.002** p< p< p< Ø Ø Ø Szajewska: 69% reduction with L. reuteri Protectis compared to 47% with placebo Savino: 90% reduction with L. reuteri Protectis compared to 70% with placebo Savino: 62% reduction with L. reuteri Protectis compared to 22% with simethicone Savino 2010 Savino p= * Placebo (n=21) L. reuteri Protectis (n=25) 200 p=0.987 p=0.005 Simethicone (n=42) L. reuteri Protectis (n=41) p= p<0.001 p<0.001 p< p=0.099 p= * Follow-up 1 week after termination of intervention

14 Cimperman et al, % reduction in diarrhoea incidence with L. reuteri Protectis compared to placebo Adults in hospital given a course of antibiotics were supplemented with L. reuteri Protectis or placebo for 4 weeks L. reuteri Protectis reduced incidence of diarrhoea by 84% compared to placebo

15 Prevention?

16 Health protection by L. reuteri Protectis in children Children (4-10 m) with increased risk for infection 12 weeks supplementation in baby formula Weizman et al., Pediatr 115; 5-9 (2005) 16

17 Health economics of L. reuteri Protectis supplementation Children (4-10 m) with increased risk for infection 12 weeks supplementation in baby formula Weizman et al., Pediatr 115; 5-9 (2005) 17

18 Preventive use of L. reuteri Protectis reduced crying by more than 50% after one month 53% less crying with L. reuteri Protectis compared to placebo after one month Indrio 2014.

19 Preventive use of BioGaia Protectis increased the number of evacuations more daily evacuations with BioGaia Protectis compared 30% to placebo in one month Indrio F et al. JAMA Pediatrics 2014

20 Preventive use of BioGaia Protectis reduced regurgitations 37% fewer daily regurgitations with BioGaia Protectis compared to placebo in three months Indrio F et al. JAMA Pediatrics 2014

21 Conclusions Ø Preventive use of L. reuteri Protectis in healthy newborns reduces onset of colic, regurgitation and constipation Ø Preventive use of L. reuteri Protectis reduces direct costs for both family and community Ø Preventive use of L. reuteri Protectis is proven to be valuable for both infants, parents and the society Indrio 2014.

22 Attractive and unique formulations and packaging solutions 22

23 BioGaia current products ProTectis Digestive Health ProDentis Oral Health Gastrus Stomach Health ProTectis ProTectis D3 ProTectis ProTectis ProTectis ProDentis ProDentis Gastrus Baby Baby Junior Baby/Junior Drops Drops Tablets ORS Tablets Drops Lozenges Tablets 23

24 BioGaia partner support Clinical trials Marketing and PR support BioGaia Academy Workshops Participation in medical congresses Speakers at symposiums Education of sales representatives Social media Customer support 24/7/365 24

25 Competitors Culture suppliers Chr Hansen DuPont (Danisco) Institut Rosell Lallemand (France) Probiotic strains Valio (Finland) Probi (Sweden) Functional Foods Danone Yakult Pharma Merck (Germany) Novartis Sanofi Aventis Ferrosan (Pfizer) Bayer (USA) Other P&G Local competitors 25

26 Launches and planned launches - Drops: Launched in 64 countries (contracts but not launched in 5-10 countries) - Tablets: Launched in 52 countries (contracts but not launched in 5-10 countries) - ORS: Launched in 7 countries (contracts but not launched in 6 countries) - Oral health products: Launched in 20 countries (contracts but not launched in 4 countries) 26

27 Cooperation with Nestlé Agreement 2008 (Infant formula) Agreement 2012 (EUR 50.8 million) Drops in Mexico and U.S New category of products (planned launch second half of 2014) Extended collaboration (SEK 92.0 million, New segment) Other ongoing development projects 27

28 Sales development 5 years Average growth: 18% Sales 350,0 300,0 +33% +9% -8% *) 250,0 +16% 200,0 +40% 150,0 Sales 100,0 50,0 0, *) Excluding licence revenue from Nestlé of 356 MSEK 28

29 Sales development by segment- 5 years Finished consumer products average growth: 20% Component products average growth: 17% % +10% +8% % +16% Finished consumer products Component products % +28% +42% -48% *) +16% *) Excluding licence revenue from Nestlé 29

30 Sales per geographical market 2013 (MSEK) Europe 69% (70) USA and Canada 7% (10) Asia 13% (11) Rest of world 11% (9) 30

31 Sales per segment q q (rolling 12 months) (MSEK) (License revenue excluded) Finished consumer products Component products

32 Gross Margins per segment (MSEK) (License revenue excluded) 2013/2012 Gross margin per segment Finished consumer products 70% 72% Component products 57% 59% Total gross margin 68% 70% BioGaia Brand Sales of products of BioGaia brand (incl. co-branding ) amounted to 55% (51%) of finished consumer products during

33 Income statement 2013 vs 2012 Excl. Licence Licence revenue income incl Excl curr eff. Net sales Finished consumer products 256,2 237,6 237,6 8% 11% Licence revenue ,0 Net sales Component products 58,6 50,6 50,6 16% 17% Net sales Other products 1,1 1,1 1,1 0% Total sales 315,9 289,3 645,3 9% 12% Cost of goods sold -101,7-88,2-88,2 Gross profit 214,2 201,1 557,1 7% Gross margin 68% 70% 86% Operating expenses -134,3-126,6-126,6 6% Exchange gain/loss on operation 1,8-2,4-2,4 Operating profit 81,7 72,1 428,1 13% 16% Operating margin 26% 25% 66% Exchange gain/loss on forward exchange contracts -2,9 5,6 5,6 Interest income 5,0 8,6 8,6 Profit before tax 83,8 86,3 442,3-3% Profit margin 27% 30% 69% Tax -19,6-22,6-112,4 Profit after tax 64,2 63,7 329,9 1% 33

34 Balance sheet 31 December 2013/2012 (MSEK) Assets Dec 31, 2013 Dec 31, 2012 Tangible assets 60,3 49,2 Current assets 88,8 92,8 Cash and cash equivalents 234,3 375,0 Total assets 383,4 517,0 Equity and liabilities Equity attributable to owners of the Parent company 317,4 453,3 Non-controlling interets -0,5 3,5 Total equity 316,9 456,8 Deferred tax liability 0,1 24,7 Interest-free current liabilities 66,4 35,5 Total equity and liabilities 383,4 517,0 34

35 5 years development (2012: excluding licence revenue from Nestlé) Net sales Gross result Operating expenses Operating profit Profit before tax

36 Board of Directors

37 Major Shareholders 31 December 2013 A shares B shares Share capital No. of votes Capital Votes 000's 000's SEK 000's 000's % % Annwall & Rothschild Inv. AB ,6% 36,2% Sebastian Jahreskog ,6% 5,5% David Dangoor (inkl bolag) ,3% 2,4% Futuris ,1% 2,2% Pictet & CIE, W8IMY ,9% 2,1% AMF-Försäkring och fonder ,2% 1,6% Swedbank Robur fonder ,2% 1,6% Skandinaviska Enskilda Banken S.A ,2% 1,6% Handelsbanken Fondbolag RE JPMCB ,1% 1,5% State Street Bank & Trust com., Boston ,9% 1,4% Other shareholders ,9% 43,9% Total: % 100% Total number of shareholders 31 December, 2013: 7,448 Foreign owners: 44% of capital (32% of votes)

38 Key events first quarter 2014 Publication of study showing that colic can be prevented No significant differences in BioGaia s diabetes study Additional payments from Nestlé Extended collaboration with Nestlé Publication of study showing that it is possible to prevent common infections in children 38

39 Probiotic supplements global market 5,0 4,5 Probiotic supplements historic global sales and projections (in billions $) 4,3 4,0 3,5 3,0 2,8 2,5 Probiotic supplements global sales 2,0 1,8 1,5 1,0 0,5 0, Euromonitor International 2013

40 Growth potential existing products 3 or more products from our product line launched in only 21 countries out of 70 countries Drops per new-born (from 3% up to 434%, average 105%) Contract but not launched: China, South Korea, Brazil White spots: UK, India, Vietnam, Myanmar, Thailand, Netherlands 40

41 Present focus Continued focus on US, Russia, India and UK Launch in Brazil A number of projects with Nestlé Manufacturing process for NEC-product New organization (Business units) New reporting by segment from