thornton & ross ltd - plg · november 2014 obesity timebomb 'could destroy the march 2015...

Thornton & Ross Ltd

Thornton & Ross Ltd

PLG/OTCToolbox

March 2016

PLG/OTCToolbox March 2016

1920 1930 1940 1950 1960 1970 1980 1990 2000 2010

T&R – the story so far…

Chapter 1: Foundation

Chapter 2: Growth

Chapter 3: STADA


1922: Zoflora

Nathan Thornton developed

Zoflora disinfectant in 1922


New products soon followed…


1920 1930 1940 1950 1960 1970 1980 1990 2000 2010

Brands are vital to growth


1922

Zoflora

1968

Covonia

1991

Care


Nearly 1 in 3 cough medicines

sold in the UK are made by T&R

Care - the biggest selling OTC

brand by volume in UK Pharmacies

Zoflora accounts for

almost 1 in 3

disinfectants

purchased in the UK


1920 1930 1940 1950 1960 1970 1980 1990 2000 2010



Chapter 2: Growth

Chapter 3: STADA


2001: 21 OTC brands acquired


The world's first

licensed

non-pesticide

head lice treatment

2006: Hedrin launched

Thornton & Ross Ltd

More than £4 out of every £10 spent on

head lice treatments in the UK are Hedrin

#1 in Europe

150+

bottles

per

minute


2001-2013 sales and profit

£19m

£24m £27m

£29m

£33m £33m

£39m £42m

£45m

£52m

£58m £60m

£66m

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Sales increased more than 300%

#4 UK OTC pharmacy business

Sales

EBIT


1920 1930 1940 1950 1960 1970 1980 1990 2000 2010



Chapter 2: Growth

Chapter 3: STADA


Strategic focus on OTC

1) Definition of overall market: EU28+RU+CH+NO+RS – Panel: Retail + Hospital – MAT/12/2014, not including cosmetics and Rx branded products; Source: IMS Health MIDAS

OTC corporation Sales in €m

1 Novartis 1,364

2 Bayer 1,186

3 Sanofi 1,081

4 Johnson & Johnson 1,010

5 GlaxoSmithKline 605

6 Teva 546

7 Reckitt Benckiser 537

8 Boehringer Ingelheim 408

9 Abbott 396

10 Roche 382

11 Bristol-Myers Squibb 370

12 Pierre Fabre 343

13 STADA 342

14 Meda 336

Total Market 20,093

OTC corporation Sales in €m

1 Novartis 1,550

2 Bayer 1,183

3 Sanofi 1,176

4 Johnson & Johnson 957

5 Teva 597

6 Reckitt Benckiser 541

7 Boehringer Ingelheim 446

8 GlaxoSmithKline 411

9 STADA 391

10 Abbott 373

11 Roche 365

12 Meda 316

13 Menarini 314

14 Braun-Melsungen 313

Total Market 21,156

20101) 20141)


Strategy in case of company acquisition

An acquisition should benefit in two ways:

• Internationalization potential of the products

• Launch of STADA-group products through the acquired company


Brand acquisitions provide strong

momentum

• Claire Fisher (Cosmetics)

• Aqualor® (Cough and cold)

• Flexitol® (Dermatological hand and foot care)

• Fultium® (Vitamin D3 deficiency)

• AndroDoz® and NeroDoz® (Men's health)

• Rydex® Immun-Power* (Nutritional supplement)

• DAOSIN® (Enzymatic food intolerances)

• Combigesic® (analgesic combination – distribution from

Q4/2015 onwards)

• Binosto® (bisphosphonate/ osteoporosis – distribution from

Q4/2015 onwards)

Acquisitions 2014/2015


Cough and Cold Skin Treatments /

Cosmetics

Vitamins, Minerals &

Nutritional

supplement

Pain Others

(Aqualor®)

(Levomecol®)

(Vitaprost®)

Wide range of product categories


Strong sales growth in the branded

products area1) in 2014

1) Each relating to the market region.

242.7 € million 124.0 € million 118.2 € million

30.7 € million 25.2 € million 24.2 €

million

20.7 €

million

19.9 €

million

18.8 €

million

16.6 €

million

12.6 €

million

12.0 €

million

11.8 €

million 9.9 €

million 8.6 €

million

Russia

-3.8% Germany

+12% UK

+73.4% Italy

+18.6% Poland

+29.8% Vietnam

+45.4% Ukraine

-24.1%

France

+86.1%

USA

+26.5% Serbia

+20.3% Switzerland

+8.1% Spain

+14.3% Kazakhstan

-35.0% Czech Republic

+28.0%

Belgium

+13.3%


Expansion of the Branded Products

segment

Share of Branded Products in adjusted operating profit1)

Share of Branded Products in sales1)

1) of the two core segments Generics and Branded Products.

27% 28%

33% 36%

40% 40%

36% 37%

46%

51% 52% 55%

2010 2011 2012 2013 2014 1-9/2015


2001-2015 sales and profit

£19m £24m

£27m £29m £33m £33m

£39m £42m

£45m

£52m

£58m £60m

£71m

£108m

£146m

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Sales

EBIT Sales increase more

than doubled in 2 years!


Strategy Strategy


Millions of people at risk of low vitamin D need better access to supplements to protect health, says NICE. People who are at risk of low vitamin D should be given better access to supplements to protect their health. An estimated 10 million people across England may have low vitamin D.

November

2014

Obesity timebomb 'could destroy the NHS’

March 2015

Record number of people undergoing amputations because of diabetes. Diabetes UK says too many patients

with diabetes are receiving inadequate

care from NHS as latest figures show

135 patients a week underwent

amputations.

July 2015

Vitamin D insufficiency

contributes to increased

10-year fracture risk in

elderly women. April 2014

Diabetes

timebomb

warning over

doubling in

cases in two

decades.

Sept 2013

Patients with minor ailments attending A&E up to FIVE HUNDRED times a year. January 2015

Everyone 'should take vitamin D pills' Aug

2015

One in four self-diagnose on the internet instead of visiting the doctor July

2015

Eczema cases rise dramatically

March 2009

Prescription Pharmacy Retail

Pharmacy Wholesale

Pharmacy Retail

Grocery Retail

CCG

GP Nurse

Hospital

180 Rx team

28 OTC team

SALES REACH


Prescription Pharmacy Retail

2013


December 2013 – Genus integrated

15% improvement Cetraben cost

of goods

Synergies


POM to GSL switch in progress

– TV advertising planned


June 2014 – Flexitol UK


UK’s most

prescribed

25% urea-

based balm

Flexitol – new packaging

20% improvement

in Flexitol cost of goods

May 2015 European

rights


December 2014 – Internis


FEB 12 JUN 15

Demand increasing!

Fultium Monthly Sales


February 2015 –

Ladival UK launch


NEW Acquisitions


Internationalisation of brands

• 10% of T&R’s sales are

international

• Historically achieved

with licensing/distribution

• Stada has both the

resources and structure

to capitalise on our

brands abroad

• Major programme of

internationalisation now

underway

T&R Sales by route 2015

International

10%

Prescription

43%

OTC

47%


Internal development

• Improved operating efficiencies

• EBIT trebled

• All achieved whilst increasing headcount

by only 10 people!

• Reviewing over 30 Stada SKUs to

integrate into Huddersfield

• Refurbished QC labs

• New development labs & training suite

NEW R&D Laboratories


Manufacturing

• Outsourced distribution to concentrate on

manufacturing

• Significant investment in manufacturing

– Completed New High Speed Liquid/Spray filling

(increase from 30 to 150 bottles per minute)

– New 6 tonne cream manufacturing vessel

– New High Speed Cream manufacturing line

(increase from 30 to 80 bottles per minute)

– Purpose built Suppository manufacturing vessel

– ISV capacity increased by 8 tonnes

4 million pots of

skin cream

Every year,

we manufacture…

6 million bottles of

head lice treatment

5 million bottles of

cough medicine

2 million litres of

concentrated disinfectant

A total of nearly 60 million

bottles, tubes and pots

Morale at T&R is high!

Linthwaite based staff average service: 10 years

450 staff x 10 years = 4,500 years expertise!


T&R’s DNA is still

very much intact!


Centre of

Excellence


Centre of Excellence

Stada group forum for:

• Identification and development of innovative

new OTC products (already at work on the

first four projects)

• Development of successful strategies for

OTC branding, consumer marketing

• Specific knowledge in therapeutic areas

such as dermatology and bone health


Summary

• Stada has empowered us to achieve so much more

• In 2 years, profits and sales more than doubled

• Completed major acquisitions, working on new ones

• Full NPD pipeline

• Manufacturing of new brands in-house

• Focus on operating efficiencies

• Planning internationalisation of new brands

• Excited to share ideas via centre of excellence

• Thrilled to be part of the Stada team

This is just the beginning!

thornton & ross ltd - plg · november 2014 obesity timebomb 'could destroy the march 2015...

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