gedeon richter press presentation 2016m12 final · interim report, m12 2016 budapest, 6 february...

34
M12 2016 Richter Group Richter Group Interim Report, M12 2016 Budapest, 6 February 2017

Upload: others

Post on 13-Aug-2020

2 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: Gedeon Richter Press presentation 2016M12 final · Interim Report, M12 2016 Budapest, 6 February 2017. M12 2016 2 ... − decreasing purchasing power EURm *Turnover of the pharmaceutical

M12 2016

Richter Group

Richter GroupInterim Report, M12 2016

Budapest, 6 February 2017

Page 2: Gedeon Richter Press presentation 2016M12 final · Interim Report, M12 2016 Budapest, 6 February 2017. M12 2016 2 ... − decreasing purchasing power EURm *Turnover of the pharmaceutical

M12 2016

2

Summary – M12 2016

Consolidated sales: +6.1% (EUR), +6.7% (HUF)+ VraylarTM royalty+ Good growth in almost all regions− Sales decline in other CIS region and in the EU10

Profit for the period*: +16.8% (EUR), +17.5% (HUF)+ Excessive improvement in financial results+ Acquisition of Rxmidas – one-off reassessment at fair value+ Recordati milestone payment− Impact of RUB EUR exchange rate – 12.8% depreciation− Increase in S&M expenses− Expenses of product withdrawal of Lisvy®

2

*Net income attributable to owners linked to the parent

Page 3: Gedeon Richter Press presentation 2016M12 final · Interim Report, M12 2016 Budapest, 6 February 2017. M12 2016 2 ... − decreasing purchasing power EURm *Turnover of the pharmaceutical

M12 2016

3

Key events I.

Teriparatide biosimilar product – Terrosa14 November 2016

− EMA-CHMP positive opinion recommending that marketing authorization be granted.

4 January 2017− European Commission (EC) granted approval

Pegfilgrastim19 December 2016

− withdrawal of Marketing Authorization Application (MAA) from the European Medicines Agency (EMA) for its biosimilar pegfilgrastim.

Page 4: Gedeon Richter Press presentation 2016M12 final · Interim Report, M12 2016 Budapest, 6 February 2017. M12 2016 2 ... − decreasing purchasing power EURm *Turnover of the pharmaceutical

M12 2016

4

Key events II.

17 January 2017 – Ulipristal acetate− Venus II (phase III) clinical trials – positive results;− evaluating the efficacy and safety of ulipristal acetate in women with

abnormal bleeding due to uterine fibroids.

19 January 2017 – Levosert®

− distribution and supply agreement with Allergan to commercialize its levonorgestrel releasing Intrauterine System (IUS);

− in Western Europe and in other European countries under the trademark of Levosert®.

Page 5: Gedeon Richter Press presentation 2016M12 final · Interim Report, M12 2016 Budapest, 6 February 2017. M12 2016 2 ... − decreasing purchasing power EURm *Turnover of the pharmaceutical

M12 2016

5

Consolidated financial highlights

*Net income attributable to owners of the parent

HUF Change % EUR Change %

Total revenues 389.7bn 6.7 1,251.2m 6.1

Profit from operations 56.0bn (16.0) 179.8m (16.5)

Profit for the period* 63.3bn 17.5 203.1m 16.8

EPS (diluted) 340 16.8 1.09 16.0

Page 6: Gedeon Richter Press presentation 2016M12 final · Interim Report, M12 2016 Budapest, 6 February 2017. M12 2016 2 ... − decreasing purchasing power EURm *Turnover of the pharmaceutical

M12 2016

10%

6%

14%

9%

2%

22%

14%

7%2%

5% 4%

5%

6

Geographical composition of Group sales

6

M12 2015 M12 2016

Hungary

RussiaPoland

Romania

EU10

EU15USA

Other CIS

Ukraine

RoW

China

HungaryRussia

Poland

Romania

EU10

EU15USA

Other CIS

Ukraine

RoW

LatAm

Total: HUF 365.2bn

EUR 1,179.4m

Total: HUF 389.7bn

EUR 1,251.2m

+ 6.7% (HUF) + 6.1% (EUR)

China

LatAm

9%

6%

16%

4%

8%

21%

15%

6%6%

2%

5%

2%

Page 7: Gedeon Richter Press presentation 2016M12 final · Interim Report, M12 2016 Budapest, 6 February 2017. M12 2016 2 ... − decreasing purchasing power EURm *Turnover of the pharmaceutical

M12 2016

7

P&L

HUFmM12 2016

Change %

EURmM12 2016

Change %

as % of total revenues

Total revenues 389,690 6.7 1,251.2 6.1

Gross profit 225,404 2.4 723.7 1.8 57.8

S&M expenses (107,213) 9.1 (344.2) 8.4 27.5

A&G expenses (20,159) 6.2 (64.7) 5.5 5.2

R&D expenses (35,081) 0.7 (112.7) 0.3 9.0

Other income and other expenses (6,941) 396.5 (22.3) 395.6 1.7

Profit from operations 56,010 (16.0) 179.8 (16.5) 14.4

Net financial income 8,658 n.a. 27.8 n.a. 2.2

Profit for the period* 63,271 17.5 203.1 16.8 16.2

*Profit attributable to owners of the parent

Page 8: Gedeon Richter Press presentation 2016M12 final · Interim Report, M12 2016 Budapest, 6 February 2017. M12 2016 2 ... − decreasing purchasing power EURm *Turnover of the pharmaceutical

M12 2016

0%

10%

20%

30%

40%

50%

60%

0

50 000

100 000

150 000

200 000

250 000

Gross profit Gross margin

8

Decreasing gross profit, gross margin

+ VraylarTM royalty+ Increase of turnover in EU15

and in China

− Sales decline in other CIS− Weakening RUB exchange rate

against EUR and HUF (YoY) EUR RUB → 12.8%

− Increase of share in turnover ofW&R

− Esmya® and Bemfola®

amortization

HUFm57.8%60.4%

Page 9: Gedeon Richter Press presentation 2016M12 final · Interim Report, M12 2016 Budapest, 6 February 2017. M12 2016 2 ... − decreasing purchasing power EURm *Turnover of the pharmaceutical

M12 2016

0%

5%

10%

15%

20%

25%

010 00020 00030 00040 00050 00060 00070 00080 000

Profit from operation Operating margin

9

Decreasing operating margin

HUFm

14.4%

18.3%

+ VraylarTM royalty+ Acquisition of Rxmidas – one-

off reassessment at fair value+ Recordati milestone payment+ Decreasing R&D expenditures

− Impact of RUB EUR exchangerate – 12.8% depreciation

− Increase in sales and marketing expenses

− Expenses linked to product withdrawal of Lisvy®

− Bemfola® amortization costs

Page 10: Gedeon Richter Press presentation 2016M12 final · Interim Report, M12 2016 Budapest, 6 February 2017. M12 2016 2 ... − decreasing purchasing power EURm *Turnover of the pharmaceutical

M12 2016

10

Sales in the Pharmaceutical segment*

* 89% of turnover originates from outside of Hungary

10

Sales development – contradictory impacts+ growth in almost all regions

+ increasing ESMYA® sales

+ sizeable contribution – cariprazine royalty

− decreasing overall OC sales

− decline: EU10, other CIS

Successful product launches

Page 11: Gedeon Richter Press presentation 2016M12 final · Interim Report, M12 2016 Budapest, 6 February 2017. M12 2016 2 ... − decreasing purchasing power EURm *Turnover of the pharmaceutical

M12 2016

Hungary

Stable pharmaceutical market

Sales increase: 2.8% in HUF

Success of products launched in recent years

HUFbn

*Turnover of the pharmaceutical segment

11

0

10

20

30

40

Turnover *

Page 12: Gedeon Richter Press presentation 2016M12 final · Interim Report, M12 2016 Budapest, 6 February 2017. M12 2016 2 ... − decreasing purchasing power EURm *Turnover of the pharmaceutical

M12 2016

EU – composition of sales*

EU15− strengthening our position

in key Western-European markets

− own Women’s Healthcaresales and marketing network

Poland, Romania, EU10− well established in the region for

decades− own specialized sales network*Turnover of the pharmaceutical segment

12

51%

49%

Page 13: Gedeon Richter Press presentation 2016M12 final · Interim Report, M12 2016 Budapest, 6 February 2017. M12 2016 2 ... − decreasing purchasing power EURm *Turnover of the pharmaceutical

M12 2016

EU15

*Turnover of the pharmaceutical segment

11.2% sales increase in EUR

Richter’s own S&M network

Women’s Healthcare products: ESMYA®, Bemfola®, Richter OC portfolio, acquired OCs

Decline in oral contraceptivemarket

EURm

13

020406080

100120140160180200

Turnover*

Page 14: Gedeon Richter Press presentation 2016M12 final · Interim Report, M12 2016 Budapest, 6 February 2017. M12 2016 2 ... − decreasing purchasing power EURm *Turnover of the pharmaceutical

M12 2016

Poland, Romania, EU10

Increasing generic competitionPrice erosion

Poland: – 6.9% increase in PLN– strong flu epidemic –

Groprinosin sales increase

Romania:– increasing sales levels

(+8.8% in RON)– base period: low level of

wholesale stock

EURm

*Turnover of the pharmaceutical segment

14

0

50

100

150

200

Turnover*

Poland Romania EU10

Page 15: Gedeon Richter Press presentation 2016M12 final · Interim Report, M12 2016 Budapest, 6 February 2017. M12 2016 2 ... − decreasing purchasing power EURm *Turnover of the pharmaceutical

M12 2016

CIS

Sales decline (-0.9% in EUR)

Russia− RUB devaluation (YoY)− slowdown of Russian economy

(but positive prospects in 2017)

Ukraine− political uncertainty− UAH devaluation− decreasing purchasing power

EURm

*Turnover of the pharmaceutical segment

15

0

100

200

300

400

500

Turnover*

Russia Ukraine Other CIS

Page 16: Gedeon Richter Press presentation 2016M12 final · Interim Report, M12 2016 Budapest, 6 February 2017. M12 2016 2 ... − decreasing purchasing power EURm *Turnover of the pharmaceutical

M12 2016

Russia

Sales increase in RUB(+12.8% in RUB; 0.0% in EUR)February 2016 – An average 4% price increase related to thewhole portfolioIncrease in volumeWeakening of EUR RUB exchange rate in M12 2016: 12.8% (YoY)On going consolidation in thewholesale market

EURm

*Turnover of the pharmaceutical segment16

RUBm

0

100

200

300

400

Turnover*

10000

12000

14000

16000

18000

20000

Turnover*

Page 17: Gedeon Richter Press presentation 2016M12 final · Interim Report, M12 2016 Budapest, 6 February 2017. M12 2016 2 ... − decreasing purchasing power EURm *Turnover of the pharmaceutical

M12 2016

Ukraine, Other republics

Ukraine− sales increase (USD +11.2%)− low sales level in the base

period− political and economic

turmoil− UAH devaluation

USD UAH: 17.3% (YoY)

Other republics− 8.0% decrease (EUR)

(-8.3% in USD)− devaluation of Kazakh Tenge

EUR KZT: 73.3% (YoY)− uncertain economic and

FOREX environment

USDm

*Turnover of the pharmaceutical segment

17

0

50

100

150

200

Turnover*

Ukraine Other CIS

Page 18: Gedeon Richter Press presentation 2016M12 final · Interim Report, M12 2016 Budapest, 6 February 2017. M12 2016 2 ... − decreasing purchasing power EURm *Turnover of the pharmaceutical

M12 2016

USA

Sales increase (+3.2% in USD)

Cariprazine (VraylarTM) royaltyincome: USD 17.3m

Sales level of emergency contraceptives still significantSubstantial decrease of revenues resulting from profit sharing agreementsSignificant proportion of Women’s Healthcare – 64%

USDm

*Turnover of the pharmaceutical segment

18

0

40

80

120

160

Turnover*

Page 19: Gedeon Richter Press presentation 2016M12 final · Interim Report, M12 2016 Budapest, 6 February 2017. M12 2016 2 ... − decreasing purchasing power EURm *Turnover of the pharmaceutical

M12 2016

China

19

Sales in M12 2016: EUR 69.4m

Dynamically expanding pharmaceutical market

From 2016 GR Rxmidas 100% Richter owned

Sales network personnel: 232

Higher sales level of Cavinton and Escapelle

Page 20: Gedeon Richter Press presentation 2016M12 final · Interim Report, M12 2016 Budapest, 6 February 2017. M12 2016 2 ... − decreasing purchasing power EURm *Turnover of the pharmaceutical

M12 2016

Latin America

20

Sales* in M12 2016: USD 20.7mRegional presence:− Brazil− Mexico− Colombia− Ecuador− Bolivia− Peru− Chile

Women’s Healthcare products in focusGradual launch of ESMYA®

*Turnover of the pharmaceutical segment

Mediplus N.V.

Page 21: Gedeon Richter Press presentation 2016M12 final · Interim Report, M12 2016 Budapest, 6 February 2017. M12 2016 2 ... − decreasing purchasing power EURm *Turnover of the pharmaceutical

M12 2016

15%

20%

38%

3%

6%

18%

Pharmaceutical sales by therapeutic areas

Muscle relaxants

Gastrointestinal

Other

Women’s Healthcare

Central nervous system

Cardiovascular

Total: EUR 1,039.7m

M12 2016

21

Page 22: Gedeon Richter Press presentation 2016M12 final · Interim Report, M12 2016 Budapest, 6 February 2017. M12 2016 2 ... − decreasing purchasing power EURm *Turnover of the pharmaceutical

M12 2016

22%

4% 10%

39%

6%10%

4%

5%

22

Women’s Healthcare sales by region

CEEHungary

CIS

USA

RoW

EU15

Ex-Grünenthalportfolio

Total: HUF 124.6bnEUR 400.1m

EURm

22

China

LatAm

0

50

100

150

200

250

300

350

400

Gynaecological sales Non‐gynaecological sales

Page 23: Gedeon Richter Press presentation 2016M12 final · Interim Report, M12 2016 Budapest, 6 February 2017. M12 2016 2 ... − decreasing purchasing power EURm *Turnover of the pharmaceutical

M12 2016

23

Sales impact of Ex-Grünenthal portfolio and ESMYA®

Ex-Grünenthal portfolio sales: EUR 46.7m

ESMYA® sales: EUR 69.0m

Subtotal: EUR 115.7m

Women’s Healthcare sales

Ex-Grünenthalportfolio

ESMYA®

WH Total: EUR 400.1m

12%

17%

Page 24: Gedeon Richter Press presentation 2016M12 final · Interim Report, M12 2016 Budapest, 6 February 2017. M12 2016 2 ... − decreasing purchasing power EURm *Turnover of the pharmaceutical

M12 2016

24

Fertility – Bemfola®

innovative biosimilar product addressing female fertilitydeveloped as a biosimilar to Gonal-f®

recombinant-human Follicle Stimulating Hormone (r-hFSH) launch: Q2 2014currently commercialized in the EU, in Israel, in the Middle East and in AustraliaRichter acquired global marketing rights for the product (excluding the USA)

Sales in Q3-Q4 2016: EUR 10.6m*

*Included in consolidated turnover.

Page 25: Gedeon Richter Press presentation 2016M12 final · Interim Report, M12 2016 Budapest, 6 February 2017. M12 2016 2 ... − decreasing purchasing power EURm *Turnover of the pharmaceutical

M12 2016

Levosert®

distribution and supply agreement with Allergan plclevonorgestrel releasing Intrauterine System (IUS) in Western Europe and in other European countries under the trademark of Levosert®

national marketing authorizations have been already granted in Western and Northern Europe and the product has been launched by Allergan in a number of these countriesproduct already marketed by Richter in most of the Central and Eastern European countries (Uteron Pharma, 2011)upfront payments, royalty:− upon signature of the contract− subsequent to the launch of the product – further sales related

royalties and milestone payments

25

Page 26: Gedeon Richter Press presentation 2016M12 final · Interim Report, M12 2016 Budapest, 6 February 2017. M12 2016 2 ... − decreasing purchasing power EURm *Turnover of the pharmaceutical

M12 2016

staff

26

Sales network

0

200

400

600

800

1 000

1 200

1 400

1 600

1 800

2010 2011 2012 2013 2014 2015 2016CIS CEE Hungary EU15 China LatAm

Page 27: Gedeon Richter Press presentation 2016M12 final · Interim Report, M12 2016 Budapest, 6 February 2017. M12 2016 2 ... − decreasing purchasing power EURm *Turnover of the pharmaceutical

M12 2016

27

Wholesale and retail

W&R sales contribution is 19% of total sales

76% of the W&R turnover originates in Romania

21.8% sales increase in EUR in Romania

27

Page 28: Gedeon Richter Press presentation 2016M12 final · Interim Report, M12 2016 Budapest, 6 February 2017. M12 2016 2 ... − decreasing purchasing power EURm *Turnover of the pharmaceutical

M12 2016

25.25%

67.75%7.00%

28

Ownership structure

31 December 2016

Hungarian State Holding Company

Domestic investors International

investors

28

Page 29: Gedeon Richter Press presentation 2016M12 final · Interim Report, M12 2016 Budapest, 6 February 2017. M12 2016 2 ... − decreasing purchasing power EURm *Turnover of the pharmaceutical

M12 2016

Thank you for your attention!

29

Page 30: Gedeon Richter Press presentation 2016M12 final · Interim Report, M12 2016 Budapest, 6 February 2017. M12 2016 2 ... − decreasing purchasing power EURm *Turnover of the pharmaceutical

M12 2016

Appendix

Exchange rates

30

Page 31: Gedeon Richter Press presentation 2016M12 final · Interim Report, M12 2016 Budapest, 6 February 2017. M12 2016 2 ... − decreasing purchasing power EURm *Turnover of the pharmaceutical

M12 2016

31

Evolution of currency exchange rates

HUF

260

280

300

320

340

EUR HUFUSD HUF

Page 32: Gedeon Richter Press presentation 2016M12 final · Interim Report, M12 2016 Budapest, 6 February 2017. M12 2016 2 ... − decreasing purchasing power EURm *Turnover of the pharmaceutical

M12 2016

32

Evolution of currency exchange rates

EUR

60

70

80

90

100

EUR RUB

Page 33: Gedeon Richter Press presentation 2016M12 final · Interim Report, M12 2016 Budapest, 6 February 2017. M12 2016 2 ... − decreasing purchasing power EURm *Turnover of the pharmaceutical

M12 2016

33

Evolution of currency exchange rates

HUF

3,25

3,50

3,75

4,00

4,25

4,50

4,75

5,00

HUF RUB

Page 34: Gedeon Richter Press presentation 2016M12 final · Interim Report, M12 2016 Budapest, 6 February 2017. M12 2016 2 ... − decreasing purchasing power EURm *Turnover of the pharmaceutical

M12 2016

M12 2016 M9 2016 H1 2016 Q1 2016 M12 2015

EURHUF 311.46 312.23 312.67 311.98 309.67

USDHUF 281.26 279.64 279.95 283.12 279.16

RUBHUF 4.19 4.09 4.00 3.77 4.70

EURRUB 74.33 76.34 78.17 82.75 65.89

EURUSD 1.11 1.12 1.12 1.10 1.11

34

Exchange rates At period end

Average

31.12.2016 30.09.2016 30.06.2016 31.03.2016 31.12.2015

EURHUF 311.02 309.15 316.16 314.16 313.12

USDHUF 293.69 276.35 284.29 276.62 286.63

RUBHUF 4.78 4.36 4.43 4.09 3.88

EURRUB 65.07 70.91 71.73 76.81 80.70

EURUSD 1.06 1.12 1.11 1.14 1.09