interim report january september 2011 · interim report january – september 2011 stockholm, 20...
TRANSCRIPT
Geoffrey McDonough (CEO) and Lars Sandström (CFO)
Interim Report January – September 2011 Stockholm, 20 October 2011
We provide valuable medicines to patients with rare diseases
Disclaimer
2
In order to utilize the ‘Safe Harbor’ provisions of the United States Private Securities Litigation Reform Act of 1995, Swedish Orphan Biovitrum is providing the following cautionary statement. This presentation contains forward-looking statements with respect to the financial condition, results of operations and businesses of Swedish Orphan Biovitrum. By their nature, forward-looking statements and forecasts involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. There are a number of factors that could cause actual results and developments to differ materially from that expressed or implied by these forward-looking statements. These factors include, among other things, the loss or expiration of patents, marketing exclusivity or trade marks; exchange rate fluctuations; the risk that R&D will not yield new products that achieve commercial success; the impact of competition, price controls and price reductions; taxation risks; the risk of substantial product liability claims; the impact of any failure by third parties to supply materials or services; the risk of delay to new product launches; the difficulties of obtaining and maintaining governmental approvals for products; the risk of failure to observe ongoing regulatory oversight; the risk that new products do not perform as we expect; and the risk of environmental liabilities.
Agenda
3
•Introduction Geoffrey McDonough, CEO
•Financial Review Lars Sandström, CFO
•Business Review Geoffrey McDonough, CEO
•Q & A
Key Points
4
•Sobi is an integrated, innovative biopharmaceutical company
•We have a unique position in the rare disease space
•Our focus today:
1. Growth – reaching the potential of our key products
2. Profitability – operating efficiency and discipline
3. Building value for our future – executing on our pipeline
Lars Sandström, CFO
Financial Review
We provide valuable medicines to patients with rare diseases
Financial performance YTD
0
500
1 000
1 500
2010 YTD 2011 YTD
SEK
M Total revenues
EBITA before non-recurring items
6
Revenues by quarter
7
0
100
200
300
400
500
600 Q
3-1
0
Q4
-10
Q1
-11
Q2
-11
Q3
-11
SEK
M
Product sales & Co-promotion Other revenues
•Total revenues SEK 447 M (444) • Currency effects SEK -13 M
• Discontinued products SEK -26 M
•Product sales and Co-promotion +8% y/y adjusted for currency effects and discontinued products
Revenues Q3-11 vs. Q3-10
8
0
100
200
300
400
500
Q3 2010 Discontinued products
Currency Growth from product portfolio
Growth from other revenues
Q3 2011
SEK
M
-26 -13
+26 +15
EBITA before non-recurring items by quarter
9
•EBITA before non-recurring items SEK 3.0 M (65.6)
•EBITA margin 0.7% (12.8)
0%
10%
20%
30%
40%
50%
0
50
100
150
200
250 Q
3-1
0
Q4
-10
Q1
-11
Q2
-11
Q3
-11
SEK
M
EBITA before non-recurring items % of sales
EBITA Q3-11 vs. Q3-10
10
EBITA
SEK 3 M (66)
+ Volume
+ Lower operating expenses
− Gross margin 52% (64%)
− Scheduled plant maintenance
− Currency
− Royalty
Cash flow before financing (excl. acquisitions) by quarter
11
•Cash flow before financing (excl. acquisitions) SEK -3.2 M (+3.4)
•Working capital SEK -13.7 M (-32.4)
•Net investments SEK -28.7 (-5.0)
-150
-100
-50
0
50 Q
3-1
0
Q4
-10
Q1
-11
Q2
-11
Q3
-11
SEK
M
Cash flow before financing (excl. acq.)
Whereof working capital
Total inventory value by quarter
12
0
200
400
600
800
1 000
1 200
Q4
-08
Q1
-09
Q2
-09
Q3
-09
Q4
-09
Q1
-10
Q2
-10
Q3
-10
Q4
-10
Q1
-11
Q2
-11
Q3
-11
SEK
M
Tech Transfer Kineret
Net debt by quarter
13
•Net debt SEK 613 M (1,131)
•Net debt to equity 12%
0%
10%
20%
30%
0
500
1 000
1 500 Q
3-1
0
Q4
-10
Q1
-11
Q2
-11
Q3
-11
SEK
M
Net debt Net debt / Equity
Outlook 2011
14
•Reiterate revenue growth of 1-5 % and lower gross margin compared to last year
•Expect to evaluate possible write-down of balance sheet items in Q4 of up to SEK 350 M • Inventory positions
• Intangible assets
•Other items including finalization of restructuring announced in Q1 2011
Geoffrey McDonough, CEO
Business Overview
We provide valuable medicines to patients with rare diseases
Sales Driven by a Diverse Portfolio
0
100
200
300
400
500
600 Q
3-1
0
Q4
-10
Q1
-11
Q2
-11
Q3
-11
SEK
M
Product sales & Co-promotion Other revenues
54 Products
16
Portfolio Dominated by Three Lines
17
ReFacto 37%
Kineret 21%
Orfadin 16%
Other products 26%
Revenues YTD
Revenues YTD growth @ CER
18
0
100
200
300
400
500
600
Kineret Orfadin ReFacto Other products excl. discontinued
SEK
M
2010 2011 @ CER
+8%
+6%
+29%
+1%
Kineret Potential in RA Segment (Europe example)
19
•Role of Kineret in RA is re-emerging as an option for patients
•We are gaining momentum as we learn more about the appropriate clinical role for Kineret in the rheumatology community
Total RA patients 4.7 million (approx. 1% of population)
Diagnosed patients 3 million (approx. 60% of total)
Treated with biologics 820 000
Eligible Kineret patients 200 000
Current Kineret Market Share
0.5%
Source: Datamonitor 2010, Schiff et al 2004 and Sobi assumptions
0
25
50
75
100 Q
1-1
0
Q2
-10
Q3
-10
Q4
-10
Q1
-11
Q2
-11
Q3
-11
SEK
M
Orfadin @ CER
Growth Drivers for Orfadin
20
•Potential in existing markets as awareness of newborn screening and adolescent compliance increases
•New markets • First commercial sales in Russia
• Working to build our presence in the Middle East region
Revenues* YTD by region
21
Europe 52%
Nordic 8%
North America
36%
RoW 4%
Kineret and Orfadin
* Product sales and Co-promotion
Europe 25%
Nordic 62%
North America
12%
RoW 1%
Other products
Revenues* YTD growth @ CER
22
0
100
200
300
400
500
Europe Nordic excl. discontinued products
North America RoW
SEK
M
2010 2011 @ CER
+4%
+13% +6%
+5%
* Product sales and Co-promotion
Research & Development
23
Indication Product/ Project
Partner Phase I Phase II Phase III Reg. phase
Hemophilia A rFVIIIFc Biogen Idec
Hemophilia B rFIXFc Biogen Idec
Prevent growth restriction in premature infants
Kiobrina
Communications Calendar
24
29 November 2011
• Capital Markets Day – Stockholm
9-12 January 2012
• JP Morgan Presentation – San Francisco
23 February 2012
• Q4 Earnings Call – Stockholm
For details please contact: Asa Stenqvist – [email protected]
Summary
25
•Sobi is an integrated, innovative biopharmaceutical company
•We have a unique position in the rare disease space
•Our focus today:
1. Growth – reaching the potential of our key products
2. Profitability – operating efficiency and discipline
3. Building value for our future – executing on our pipeline
26