Ipsen Sa · EURONEXT:IPN
Ipsen Sa — H1 2017 Earnings Presentation
27 slides from Ipsen Sa's earnings presentation, September 2017
Slide 1: Ipsen H1 2017 Results
Ipsen H1 2017 Results Roadshow – September 2017
Slide 2: Disclaimer & Safe Harbor
Disclaimer & Safe Harbor This presentation includes only summary information and does not purport to be comprehensive. Forward-looking statements, targets and estimates contained herein are for illustrative purposes only and are based on management’s current views and assumptions. Such statements in
Slide 3: Agenda
Agenda 01 H1 2017 Overview David Meek, CEO 02 H1 2017 Financial Performance/ Aymeric Le Chatelier, CFO FY 2017 Financial Guidance 03 R&D Update & Conclusion David Meek, CEO 3
Slide 4: H1 2017 Overview
01 H1 2017 Overview David Meek Chief Executive Officer 4
Slide 5: Strong financial performance in H1 2017
01 Strong financial performance in H1 2017 Robust sales growth of +19% (1) driven by Specialty Care Continued margin improvement to reach 26% of sales while supporting launches of new products Cabometyx® and Onivyde® Upgraded 2017 full year guidance based on strong momentum for Specialty Care
Slide 6: H1 2017 highlights – Strong momentum with a clear focused strategy
H1 2017 highlights – Strong momentum with a clear focused 01 strategy Strategic business Corporate strategy R&D development execution achievements Accelerate Acquisition of Specialty Care Onivyde® R&D project growth prioritization Acquisition of Consumer CHC portfolio Internal Healthcare
Slide 7: Momentum fueled by Specialty Care growth and the U.S.
01 Momentum fueled by Specialty Care growth and the U.S. U.S. fast growing and representing Specialty Care led business 24% of sales H1 2017 sales by therapeutic area H1 2017 sales by geographical area Neurosciences Rare Diseases Emerging markets 4% Consumer 18% Healthcare 17% EU5 29% Specialty Care
Slide 8: Exceptional Somatuline performance driving Specialty Care business
01 Exceptional Somatuline ® performance driving Specialty Care business Sales growth (2015 – H1 2017) Momentum continuing in H1 2017 Ipsen reported sales (€m) U.S. driving 3/4 of Somatuline® growth €340m +32% Positive synergies from enlarged €284m €255m +34% +5% oncology salesforce +37% €213m €1
Slide 9: Cabometyx launch progressing well
01 Cabometyx ® launch progressing well Europe reimbursement for patient access Total volume (units) of Cabometyx ® Recent approvals in UK (NICE) and Spain 2,000 Approvals in France and Italy expected by end of Q3 2017 18 Health Technology Assessment/ Pricing & 1,500 Reimbursement dossiers bein
Slide 10: Onivyde launch strategy to drive rapid uptake
01 Onivyde ® launch strategy to drive rapid uptake Field force Value and access 3x expansion complete, activities initiated 2nd half of April Drive breadth/ depth in institutions ~275 new accounts ordered, over 30K calls Optimizing price expected in H2 2017 Clinic/GPO contracts signed Pe
Slide 11: Transformation of R&D model
01 Transformation of R&D model Objective: Ensure sustainable growth through replenished R&D pipeline delivering steady state of innovation and value Internal reorganization VC fund incubator model Business development • Alexandre Lebeaut appointed • Augment R&D pipeline through • Near-term targets:
Slide 12: Growth drivers to sustain momentum
01 Growth drivers to sustain momentum Business Dev. Ongoing business development efforts to bring in innovative, best-in-class assets Launch excellence Launch excellence for Cabometyx® in Europe and Onivyde® in the U.S. Established Specialty Continued strong performance Care of Specialty Care, espec
Slide 13: Financials
02 Financials Aymeric Le Chatelier Chief Financial Officer 13
Slide 14: H1 2017 sales growth driven by Specialty Care business
02 H1 2017 sales growth driven by Specialty Care business Group sales Net sales HY 2017 in million euros – % excluding foreign exchange impact €919.5m Somatuline® 340 +32% +18.8% Specialty Care Decapeptyl® 171 +2% Onivyde® 19 Specialty Care Cabometyx® €764.6m 17 +23.1% Dysport® 164 +14% Nutropin® 27
Slide 15: H1 2017 performance highlights for key products
02 H1 2017 performance highlights for key products Established Specialty Care New product launches Consumer Healthcare Somatuline® Cabometyx® Strong Solid Q2Q2 driving driving business business back back to • Momentum driven by volume • Launch progressing well to growth growth in H1 in H1 growth
Slide 16: H1 2017 positively impacted by currencies
02 H1 2017 positively impacted by currencies More than 50% of sales in non-EUR H1 2017 sales positively impacted by currency currencies H1 2017 sales by currency Average rates change (June 2017 vs. June 2016) … 25% Other(1) 21% 15% EUR GBP 3% 4% CNY 8% 46% -2% -10% USD 27% GBP USD BRL CNY RUB Exposu
Slide 17: Operating costs reflect R&D investment and support for launches
02 Operating costs reflect R&D investment and support for launches COGS (€m) R&D (€m) 190.2 115.0 172.2 95.0 20.7% 12.5% 22.5% 12.4% HY 2016 HY 2017 HY 2016 HY 2017 Positive mix effect from growing Specialty Care business Lifecycle programs and new oncology capabilities S&M (€m) G&A (€m) 349.6 68.3
Slide 18: Operating margin expansion
02 Operating margin expansion -0.9 pt +0.0 pt +0.4% +1.6 pts Cabometyx® Onivyde® FX 26.2% Base business 25.0% performance HY 2016 HY 2017 Margin expansion driven by Specialty Care growth and favorable foreign exchange currencies, despite impact of investments for Cabometyx® 18
Slide 19: Core Operating Income to EPS
02 Core Operating Income to EPS In million euros H1 2017 H1 2016 Change % Change Net sales 919.5 763.8 +155.7 +20.4% Core Operating Income +25.7% Core Operating Income 240.5 191.3 +49.2 +25.7% • Strong Specialty Care sales growth Core Operating margin 26.2% 25.0% +1.2 pts • Increased commercial inve
Slide 20: Generating solid cash flow
02 Generating solid cash flow Free cash flow: €95m In €m +262 -56 -37 -18 Closing net -56 cash* 69 -71 Opening net cash* -760 -669 -3 Tax, December EBITDA Change in Net Restruct. Dividends BD & Share June financial & 2016 working capital capex and OIE milestones buy back 2017 Other & Other Strong fr
Slide 21: FY 2017 guidance upgraded
02 FY 2017 guidance upgraded Previous FY 2017 Updated FY 2017 guidance guidance Specialty Care sales growth > +18.0% > +24.0% At constant currency based on strong momentum for Somatuline® and Cabometyx® launch Consumer Healthcare sales growth > +4.0% > +0.0% At constant currency reflecting lower sal
Slide 22: Key H1 2017 financial takeaways
02 Key H1 2017 financial takeaways Group sales growth at +19%(1) driven by the strong performance of the Specialty Care business Core Operating Income growing by +26% and margin reaching 26.2%, up 1.2 pts Solid cash flow conversion with free cash flow growing by +29% Strong balance sheet to
Slide 23: R&D update / Conclusion
03 R&D update / Conclusion David Meek Chief Executive Officer 23
Slide 24: R&D portfolio achievements YTD / milestones in H2 2017
03 R&D portfolio achievements YTD / milestones in H2 2017 Approval of ALL (U.S.) Regulatory submission for CABOSUN 1L RCC (EU) Initiation of IO combo trials – Phase 3 in 1L Regulatory decision for RCC and Phase 1 in symptom control (U.S.) solid tumors Results for Phase 3 Positive CHMP opinion
Slide 25: Building sustainable R&D pipeline
03 Building sustainable R&D pipeline Preclinical Phase I Phase II Phase III Registration 3BP-227 3BP-227 (PRRT) (PRRT) PRRT (GEP NET) Somatuline® PRF Cabometyx® Dysport® solution (liquid) GEP NET 2L HCC cervical dystonia Long acting Long acting toxin toxin Cabometyx® Decapeptyl 3M Cabometyx® Dysport
Slide 26: 2017 Ipsen roadmap
03 2017 Ipsen roadmap Deliver 2017 revised guidance with accelerated sales growth and significant improved profitability Execute successful commercial launches of Cabometyx® and Onivyde® Accelerate transformation of R&D and external innovation model Consumer Healthcare back to sustainable an
Slide 27: MERCI
MERCI 27