Ucb S.a. · EURONEXT:UCB
Ucb — H1 2017 Earnings Presentation
41 slides from Ucb's earnings presentation, Jul 27, 2017
Slide 1: 2017 Half-Year Results
UCB Inspired by patients. Driven by science. 2017 Half-Year Results Brussels, 27 July 2017
Slide 2: Disclaimer and safe harbor
2017 HY report 2 Disclaimer and safe harbor Forward-looking statements This presentation contains forward-looking statements, including, without limitation, statements containing the words “believes”, “anticipates”, “expects”, “intends”, “plans”, “seeks”, “estimates”, “may”, “will”, and “continue” a
Slide 3: UCB HY 2017 information flow
2017 HY report 3 UCB HY 2017 information flow ןPositive growth momentum of core products drive company growth • Jean-Christophe Tellier, CEO ןBimekizumab demonstrates skin clearance in phase 2b psoriasis study • Emmanuel Caeymaex, Immunology Patient Value Unit Head ןStrong growth gives rise
Slide 4: UCB's patient value strategy
2017 HY report 4 UCB's patient value strategy We create value for patients through unique outcomes and the best individual experience for specific populations, improving as many of these lives as possible Mariana, living with epilepsy Shareholder value Value for patients
Slide 5: UCB is progressing on its growth path
2017 HY report 5 UCB is progressing on its growth path Priorities vs HY 2017 achievements Grow core products Cimzia®, Vimpat®, Keppra®, Briviact® + Neupro®: combined net sales: € 1.7 billion (+18%) = 85% of net sales Advance and prepare launch of next wave bimekizumab with strong positive phase 2b r
Slide 6: Translating scientific hypothesis into clinical differentiation
2017 HY report 6 Translating scientific hypothesis into clinical differentiation Bimekizumab Bimekizumab complete and specific blockade IL-17A & IL-17F Partial blockade anti-IL-17A therapeutics IL- IL-17F 17A Specific targeting Innovative breakthrough both IL-17A and IL-17F molecules will improve th
Slide 7: Bimekizumab: Strong positive results from BE ABLE
2017 HY report 7 Bimekizumab: Strong positive results from BE ABLE Demonstrates skin clearance in phase 2b psoriasis study 250 patients Up to 79% of patients Up to 60% of patients Moderate to severe chronic achieved at least 90% achieved complete skin plaque psoriasis* skin clearance (PASI90) cleara
Slide 8: Bimekizumab current development program
2017 HY report 8 Bimekizumab current development program First monoclonal antibody neutralizing both IL-17A and IL-17F Add on to Cimzia® Psoriasis Psoriatic arthritis Ankylosing spondylitis (NCT02430909) (NCT02905006) (NCT02969525) (NCT02963506) • 159 patients with • 250 patients moderate • 200 pati
Slide 9: Continued strong growth in 2017
9 Continued strong growth in 2017 Detlef Thielgen, CFO
Slide 10: UCB HY 2017 financial highlights
2017 HY report 10 UCB HY 2017 financial highlights Core product growth drive top and bottom line Actual CER adjusted Revenue € 2.2 billion +12% +10% +13% • Revenue adjusted for divestitures and one-time revenue* • Net sales up by 10% (+9% CER) to € 2 billion • Net sales adjusted for divestitures +14
Slide 11: Continuously improved product mix
2017 HY report 11 Continuously improved product mix Cimzia®, Vimpat®, Keppra®, Briviact® + Neupro® = 85% of net sales Cimzia® +11% (+9% CER) • Sustainable growth in a competitive environment Vimpat® +25% (+22% CER) • Robust growth in all markets Keppra® +17% (+16% CER) • Driven by Japan, internation
Slide 12: 2017 HY - Top line growth leads to improved ratios
2017 HY report 12 2017 HY - Top line growth leads to improved ratios* Sustainable growth and margin improvement 30% Gross margin ratio* Operating expense ratio* 25% 75% 70% 71% 60% 57% 69% 69% 55% 52% 47% 21% 18% 17% FY 2013 FY 2014 FY2015 FY2016 2018e FY 2013 FY 2014 FY 2015 FY 2016 HY 2017 FY 2013
Slide 13: 2017 financial outlook
2017 HY report 13 2017 financial outlook …updated cross all key performance indicators… 2017 financial targets Guidance beyond 2017 unchanged Revenue € 4.35 - 4.45 billion rEBITDA / revenue ratio 30% in 2018 rEBITDA € 1.15 – 1.25 billion 'CVN' net sales ≥ € 3.1 billion by 2020 Core EPS* € 3.70 – 4.1
Slide 14: Translating scientific hypotheses into clinical development
2017 HY report 14 Translating scientific hypotheses into clinical development Phase 1 Phase 2 Phase 3 Filing bimekizumab (IL17A/F) Phase 2b results: July 2017 / Q2 & Q3 2018 psoriasis, psoriatic arthritis, ankylosing spondylitis1 dapirolizumab pegol (CD40L antibody) Phase 2b results: H2 2018 (Partne
Slide 15: UCB's patient value strategy
2017 HY report 15 UCB's patient value strategy We create value for patients through unique outcomes and the best individual experience for specific populations, improving as many of these lives as possible Mariana, living with epilepsy Shareholder value Value for patients
Slide 16: Your Questions, please
2017 HY report 16 Your Questions, please UCB's strategic growth path True differentiation drives leadership and sustainability Breakthrough phase - Growth expansion Growth by the next wave expansion of products Briviact® + Strong growth EVENITY™ Cimzia®, Vimpat®, Neupro® + Keppra®
Slide 17: Further facts and figures
17 Further facts and figures
Slide 18: UCB - A global networked player
2017 HY report 18 UCB - A global networked player Recent investments and partnerships in technology platforms Acquisition of leading capabilities for protein expression and structural Research collaboration biology for stratified-medicine approach to the The RNA-Medicines development of novel Compan
Slide 19: 2017 HY recurring EBITDA
2017 HY report 19 2017 HY recurring EBITDA Solid growth - Improved operating expenses ratio For the six months ended 30 June Actual Variance € million 2017 2016 Actual rates CER Revenue 2 230 1 996 10% 9% Net sales 2 036 1 853 10% 9% Royalty income and fees 58 51 14% 15% Other revenue 136 92 48% 45%
Slide 20: 2017 HY profit
2017 HY report 20 2017 HY profit For the six months ended 30 June Actual Variance € million 2017 2016 Actual rates CER Recurring EBIT 619 432 43% 39% Impairment charges 4 -11 n/a n/a Restructuring expenses -7 -9 -24% -23% Gain on disposals 0 77 n/a n/a Other non-recurring income / expenses (-) 3 -7
Slide 21: 2017 HY core earnings per share
2017 HY report 21 2017 HY core earnings per share Strong growth of core net profit For the six months ended 30 June Actual Variance € million 2017 2016 Actual rates CER Profit 451 316 43% 38% Attributable to UCB shareholders 431 300 44% 39% Attributable to non-controlling interests 20 16 47% 42% Pro
Slide 22: Debt maturity schedule
2017 HY report 22 Debt maturity schedule (@ 30 June 2017) EIB loan 590 Institutional eurobond Belgian retail bond Other loans 368 368 350 118 243 176 350 350 168 250 € million 176 29 18 75 - - Liquid 2017 2018 2019 2020 2021 2022 2023 2024 beyond assets EIB: European Investment Bank
Slide 23: Strong Cimzia performance across all regions
2017 HY report 23 Strong Cimzia® performance across all regions Cimzia® Net sales1 • Crohn’s disease € million HY 2017 HY 2016 Act CER • rheumatoid arthritis • psoriatic arthritis U.S. 420 372 13% 9% • axial spondyloarthritis / Europe 176 165 7% 9% ankylosing spondylitis Japan 18 19 -5% -7% 2024 pat
Slide 24: Cimzia in-market performance
2017 HY report 24 Cimzia® in-market performance U.S. Europe Japan Cimzia® vs. Rheumatology1 Cimzia® vs. Rheumatology1 Cimzia® vs. RA Market Market Growth 20% Market Growth 20% Growth Anti TNF Biologics Cimzia® 15.0% 0% 15% 15% 11.4% -2% -0.5% 9.9% 10% 8.7% 10% 8.4% 8.2% -4% +5.7% +6.6% -3.4% 5% 5% +
Slide 25: Vimpat performance
2017 HY report 25 Vimpat® performance Robust growth in all markets, launch in Japan Vimpat® Net sales1 epilepsy POS2 € million HY 2017 HY 2016 Act CER 2022 patent expiry U.S. 368 291 26% 23% (U.S. & EU) Europe 82 72 15% 15% 2024 (Japan) Japan 6 Daiichi Sankyo (Japan - International markets 20 18 14%
Slide 26: Vimpat in-market performance
2017 HY report 26 Vimpat® in-market performance U.S. Europe Japan Vimpat® vs. AED Market Growth (TRx) Vimpat® vs. AED Market Growth (TDx) Vimpat® vs. AED Market Growth (TDx) 20% 20% 20% 15% 15% 14.2% 15% 11.6% 10% 10% 10% Numbers to be +14.6% 5.3% populated when 5% +9.0% 5% 5% sufficient data is 2.5
Slide 27: Keppra performance
2017 HY report 27 Keppra® performance Continued in-market demand Keppra® Net sales1 • epilepsy POS2 € million HY 2017 HY 2016 Act CER • epilepsy PGTCS3 U.S. 109 99 10% 7% • epilepsy myoclonic seizures Europe 119 121 -1% -1% Status of exclusivity: Japan 93 48 91% 87% • Japan (until 2020) Internationa
Slide 28: Keppra in-market performance
2017 HY report 28 Keppra® in-market performance U.S. Europe Japan Keppra® vs. AED Market Growth Keppra® vs. AED Market Growth (TDx) Keppra® vs. AED Market Growth 4.0% 2.5% (TRx) 5.0% 50% 2.0% 3.7% (TDx) 43.2% 4.0% 0.0% 40% AED Market Keppra® 3.0% -2.0% 30% -4.0% 2.0% +37.9% -13.7% +4.2% 20% -6.0% 1.
Slide 29: Briviact launch
2017 HY report 29 Briviact® launch New treatment option for patients living with epilepsy Briviact® Net sales1 epilepsy POS2 € million HY 2017 HY 2016 Act CER U.S. 25 4 > 100% > 100% 2026 patent expiry (U.S. & EU) Europe 11 3 > 100% > 100% International markets 1 0 > 100% > 100% 18 million Total Bri
Slide 30: Briviact in-market performance
2017 HY report 30 Briviact® in-market performance A new therapeutic option in the AED market U.S. Europe Briviact® – R3M TDx Share Briviact® – R3M TRx Share 0.50% 0.50% 0.42% 0.40% 0.40% 0.30% 0.30% 0.20% 0.15% 0.20% 0.10% 0.10% 0.00% 0.00% May-16 Aug-16 Nov-16 Feb-17 May-17 May-16 Aug-16 Nov-16 Feb
Slide 31: Neupro performance
2017 HY report 31 Neupro® performance Neupro® Net sales1 • Parkinson’s disease € million HY 2017 HY 2016 Act CER • restless legs syndrome U.S. 50 39 29% 25% 2021 patent expiry Europe 80 77 5% 5% (U.S. & EU) 2024 (Japan) Japan 17 19 -9% -9% International markets 6 7 -8% -12% Otsuka (Japan - 2002) Tot
Slide 32: Neupro in-market performance
2017 HY report 32 Neupro® in-market performance U.S. Europe Japan Neupro® PD vs. PD (KC) Neupro® PD vs. PD (KC) Neupro® PD vs. PD (KC) 8.0% Market Growth (TRx) 8.0% Market Growth (TDx) 20% 6.6% Market Growth (TDx) 16.9% 6.0% 6.0% 16% 4.0% 4.0% 12% -3.0% 2.0% 0.8% 0.8% 2.0% 1.4% +6.6% 8% 0.0% +16.9%
Slide 33: EVENITY (romosozumab)
2017 HY report 33 EVENITY™ (romosozumab) An innovative investigational bone-building therapy ™ Uniquely increases bone formation and decreases bone resorption Opportunity to build bone in high-risk osteoporosis patients, especially post-fracture STRUCTURE, FRAME, BRIDGE and ARCH Manorama, Phase 3 st
Slide 34: Bimekizumab Ambition: Complete skin clearance
2017 HY report 34 Bimekizumab Ambition: Complete skin clearance together with profound effects on articular and non-articular symptoms Bimekizumab complete and Patient unmet need emerges at the interface between psoriatic skin specific blockade IL-17A & IL-17F disease and the debilitating impact of
Slide 35: R&D milestones in 2017
2017 HY report 35 R&D milestones in 2017 romosozumab romosozumab Vimpat® Cimzia® osteoporosis in osteoporosis in UCB4144 / VR942 epilepsy POS – psoriasis post-menopausal post-menopausal asthma ped. adj. therapy Phase 3 results women (ARCH) women Phase 2a start Phase 3 results Phase 3 results CRL (U.
Slide 36: R&D milestones
2017 HY report 36 R&D milestones 2018 2019 rozanolixizumab / dapirolizumab Vimpat® Cimzia® UCB7665 pegol epilepsy PGTCS – nr axSpA (U.S.) ITP SLE adj. therapy Phase 3 results Phase 2a results Phase 2b results Phase 3 results Cimzia® rozanolixizumab / bimekizumab psoriasis / psoriatic UCB7665 psoriat
Slide 37: "Biotech model" - partnering examples
2017 HY report 37 "Biotech model" - partnering examples INN Indication Partner Status today vedolizumab moderate to severe: Takeda available to patients since 2014 • ulcerative colitis (UC) • Crohn’s disease (CD) reslizumab eosinophilic asthma Teva available to patients since 2016 inotuzumab ozogami
Slide 38: One UCB today: A global player
2017 HY report 38 One UCB today: A global player Presence in 38 countries complemented by a robust network of partners 7 527 employees globally As at December 2016
Slide 39: One UCB today: A global player
2017 HY report 39 One UCB today: A global player Presence in 38 countries complemented by a robust network of partners U.S. Europe Japan International markets Major sites • Atlanta, GA • Braine-l’Alleud & • Tokyo • Shangai & Zuhai, China • Raleigh, NC Brussels, Belgium • Saitama • Monheim, Germany •
Slide 40: Stable shareholder base with free-float of 60%
2017 HY report 40 Stable shareholder base with free-float of 60% Weighted average shares outstanding in 2017: 188 million “Free float” investors by region Source: Notifications and UCB underlying ownership analysis
Slide 41: Your UCB Investor Relations team
2017 HY report 41 Your UCB Investor Relations team ןAntje Witte, Vice President Investor Relations • Phone: +32 2 559 9414 • E-mail: [email protected] ןIsabelle Ghellynck, Director Investor Relations • Phone: +32 2 559 9588 • E-mail: [email protected] ןNathalie Deldime, Investor