hikma pharmaceuticals plc - jefferies · building strong market positions in the us, mena and...
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Hikma Pharmaceuticals PLC
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0 0 0 0 0 0 0 0 00
200
400
600
800
1000
1200
1400
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Excellent track record of delivering strong growth
Group revenue ($ million)
CAGR 05-14: 21%
2
BRANDED
37%of Group revenue1
GENERICSSelling non-injectable generic
products across the US
15%of Group revenue1
27 MANUFACTURING SITES IN 11 COUNTRIES6 R&D CENTRES
Operating across the US, the Middle East and North Africa and Europe
1 For the year ended 31 December 2014
INJECTABLESSelling specialised generic and
branded injectable products globally
48%of Group revenue1
Selling branded generics and in-licensed products
across the MENA region
$551m$216m
$713m
3
37%
48%
15%
Branded Injectables Generics
2014 revenue by business segment 2014 revenue by region
43%
51%
6%
MENA US Europe & ROW
Benefiting from a diversified business model
4
Branded
9%
7%7%
5%
4%
3%3% 3%
2% 2%
0%
2%
4%
6%
8%
10%
Sanofi GSK Novartis Pfizer Hikma Merck & Co Spimaco Astrazeneca Novo Nordidk Tabuk
Strong market position in the MENA region
Hikma 5-year CAGR (reported): 9%
Hikma 5-year CAGR (constant currency): 12%2
MENA market 5-year CAGR: 8%3
MENA top 10 market share (by $ value)1
1 2 3 4 5 6 7 98 10
6
1 IMS Health, YTD December 2014. Private retail sales for top 9 MENA markets, excluding injectables and government tenders2 Constant currency based on 2009 exchange rates3 Source: IMS Health
231
$730.9m
$786.6m
$918.0m
Large and experienced sales team and local manufacturing footprint
Jordan
Jordan
Algeria
Tunisia
LibyaEgypt
Sudan
Saudi Arabia
Yemen
Iraq
Oman
MoroccoKuwait
UAE
Lebanon
Hikma UAE
Sharjah
Qatar
Bahrain
Manufacturing plants
74
50
266
19
301
544
8513
146
65
9
6
6
6
50
Over 1,800 sales people across MENA
7Sales and distribution
23%
30%
8%
11%
22%
6%
2013
Cardiovascular Anti-infectives Opthalmic Dermatology & creams
Central Nervous System Diabetes Oncology Others
69 launches 59 launches
14%
18%
5%16%6%3%
38%
2015E
10%
23%
2%39%
8%
19%
2014
Expecting to launch around 200 products over the next two years
12%
12%
13%
48%
1% 15%
2016E
Developing our Branded pipeline to meet growing demand in specific therapeutic areas
Branded launches by therapeutic area
8
Injectables
Building strong market positions in the US, MENA and Europe
US
76.9%
of Injectables revenue1
EUROPE
10.5%
of Injectables revenue1
MENA
12.6%
of Injectables revenue1
KEY
7 MANUFACTURING PLANTS2 R&D CENTRES
1 2014 Injectables revenue10
US generic Injectables market share (million eaches) US generic injectables market share ($ million)
Successfully growing our US market share by value
39.9%
13.0% 13.0%
4.5% 4.4% 3.6%2.0% 1.6% 1.4% 1.4% 1.3% 1.3%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
Market Share
Dec 2013 Dec 2014 Change
Value 4.0% 6.1% +2.1 ppt
Market Share
Dec 2013 Dec 2014 Change
Volume 13.9% 13.0% (0.9) ppt
Source: IMS Healthcare, YTD 12/2014 Source: IMS Healthcare, YTD 12/2014
17.5%
11.0%
9.6%
6.1% 6.1%5.4% 5.3% 5.1%
4.2% 4.1%3.4% 3.2%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
20.0%
11
83
40
13
20
11
62
Pipeline products Bedford products to be techtransferred & re-launched
Products under development
96
51
82
Strong product pipeline will drive future growth
US Injectables product pipeline at 31 December 2014 Hikma products
Bedford productsIncludes 9
1more
differentiated products
Includes 102
products that are more differentiated or developed through R&D
partnerships
1 Products counted excluding dosage forms and strengths2 More differentiated products, or products being developed through R&D partnerships, are counted excluding dosage forms and strengths
12
Generics
Leveraging our FDA approved manufacturing facilities in MENA for the US market
US
Saudi Arabia
Jordan
20% of Generics revenue is generated from products manufactured in our MENA facilities
14
Building a strong product pipeline in niche market segments
3
1
3 5 5
3
107
4
13
2
4
1
1
1
1
3
3
1
1
0
2
4
6
8
10
12
14
16
18
20
2015 2016 2017 2018 2019 2020
Patches & transdermals Orals - controlled release Orals - other specialised Opthalmics
Oncology Other dermatologics Inhalations Other orals
Generics expected launches, 2015 to 2020
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Summary
Building a leading provider of generic pharmaceuticals
17
Delivering high quality, affordable
medicines to patients
• Leading global injectablesmanufacturer
• Leading pharmaceutical manufacturer in MENA and emerging markets
• High quality provider of non-injectable generics in the US
Six key strategic priorities
Pipeline development
Operational excellence
Investing for growth
Employees
Sustainability
Commercial opportunities