Ipsen Sa · EURONEXT:IPN
Ipsen Sa — FY2015 Earnings Presentation
28 slides from Ipsen Sa's earnings presentation, Mar 1, 2016
Slide 1: Ipsen 2015 Financial Results
Ipsen 2015 Financial Results 1 March 2016 IPSEN pour nom de la société - 07/04/2011 / page 1
Slide 2: Disclaimer and Safe Harbor
Disclaimer 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 involve known an
Slide 3: Agenda
Agenda 1 2015 overview Marc de Garidel Chairman and CEO 2 2015 financial performance Aymeric le Chatelier CFO 3 Cabozantinib in-licensing and outlook Marc de Garidel Chairman and CEO 3 Ipsen – 2015 Financial Results 3 Goldman Sachs 35th Annual Global Healthcare Conference – June 2014
Slide 4: 2015 overview
2015 overview Marc de Garidel Chairman and CEO
Slide 5: Ipsen, an international specialty pharma company
Ipsen, an international specialty pharma company FY 2015 sales by segment FY 2015 sales by geography Top 5 affiliates Primary Emerging 1 France care markets Europe 37% ~23% G5 2 China 38% ~77% 3 US Specialty 11% care 14% 4 Germany US Developed RoW 5 Italy One of the largest emerging market presence
Slide 6: Key execution milestones
Key execution milestones Implementation of a refocused strategy in specialty 1 and primary care 2 Strong operational performance driven by US turnaround New corporate governance model 3 with search for new Chief Executive Officer 6 Ipsen – 2015 Financial Results 6 Goldman Sachs 35th Annual Global He
Slide 7: A refocused strategy to sustain high sales and profit growth
A refocused strategy to sustain high sales and profit growth Specialty care Primary care NET Smecta® Lead Spasticity Optimize Forlax® Dysport® Tanakan® aesthetics Urology- oncology Adjacent GI Reinforce Diversify Adult Probiotics endocrinology Explore GI/orphan Expand Geograp
Slide 8: 2015 sales and Core Operating Income strong performance in line with market guidance
2015 sales and Core Operating Income strong performance in line with market guidance 2015 2015 guidance(1) actuals Specialty Care - Drug sales(2) ≥ 14.0% +14.4% Primary Care - Drug sales(2) [-3.0% ; 0.0%] -1.1% Core Operating margin ≥ 22.0% 22.3% (1) Revised on 31 July 2015 – (2) Year-on-year
Slide 9: Turnaround of the US platform, with high potential for growth
Turnaround of the US platform, with high potential for growth Renewed management and Salesforce (NET & spasticity) Business Successful Somatuline® NET launch and update preparation of Dysport® AUL spasticity launch Strong Dysport® aesthetics performance from Galderma US affiliate sales growth(
Slide 10: 2015 financial performance
2015 financial performance Aymeric Le Chatelier EVP CFO
Slide 11: Excellent 2015 sales growth with strong Q4
Excellent 2015 sales growth with strong Q4 Drug sales – FY 2015 in million euros – % excluding foreign exchange impact ® Somatuline +34.2% 402 ® Decapeptyl +1.3% 334 Specialty care Specialty care €1,114.2m ® Dysport +9.7% 280 +14.4% ® Nutropin +1.4% 60 Group sales Increlex ® 20 +42.2% €1,443.9m ® +1
Slide 12: Somatuline accelerated NET penetration in the US and Europe
Somatuline® accelerated NET penetration in the US and Europe Somatuline® US quarterly data, all Somatuline® Europe G5(1) quarterly indications data, all indications Ipsen reported sales ($m) Market share(2) (%) Ipsen reported sales (€m) Market share(2) (%) 40 12.8% 14 44.2% 45 40 12 30 40 10 30 8 35
Slide 13: Dysport US market share in aesthetics increasing since Galderma takeover
Dysport® US market share in aesthetics increasing since Galderma takeover Dysport® / Botox® Xeomin® market market share (%) share (%) 35% 90% 30% ~73% 80% Botox® 25% 70% 20% ~22% 60% 15% Dysport ® 50% 10% ~5% 40% 5% Xeomin® 0% 30% Feb 10 Jun 10 Oct 10 Feb 11 Jun 11 Oct 11 Feb 12 Jun 12 Oct 12 Feb 13
Slide 14: P&L - From sales to Core Operating Income
P&L - From sales to Core Operating Income % Change at in m€ FY 2015 FY 2014 Change Change constant FX Net sales 1,443.9 1,274.8 +169.1 +13.3% +10.4% Other revenues 76.3 57.6 +18.7 +32.5% Revenue 1,520.2 1,332.4 +187.8 +14.1% Cost of goods sold (336.8) (310.0) -26.8 +8.7% R&D expenses (192.6) (186.9)
Slide 15: Ipsen exposure to foreign currencies
Ipsen exposure to foreign currencies 2015 sales exposure by currency Evolution of major currencies vs. EUR €1,443.9 million Average rates change (2015vs. 2014) Other(1) … 19.9% 17.6% 18% 11.1% GBP 5% 50% CNY 10% -15.4% EUR -25.3% 17% USD USD CNY GBP RUB BRL Foreign Currency policy 2015 sales growt
Slide 16: Drivers for operating cost evolution
Drivers for operating cost evolution COGS (€m) R&D (€m) +8.7% +3.0% 336.8 192.6 310.0 186.9 24.4% 23.6% 14.7% 13.3% 24.3% 23.3% FY 2014 FY 2015 FY 2014 FY 2015 Positive mix effect, manufacturing efficiencies Impact of TasQ studies discontinuation Selling expenses (€m) G&A (€m) +16.7% +10.4% 541.4 12
Slide 17: P&L - From Core Operating Income to EPS
P&L - From Core Operating Income to EPS % in m€ FY 2015 FY 2014 Change Change Net sales 1,443.9 1,274.8 +169.1 +13.3% Core Operating income 322.5 260.6 +61.9 +23.8% Core Operating income margin 22.3% 20.4% +1.9 pt Other non core (7.2) (9.2) +2.0 Restructuring costs (6.7) (21.9) +15.2 Impairment gain
Slide 18: Solid cash generation to finance capex, BD and shareholder returns
Solid cash generation to finance capex, BD and return to shareholders through dividend & share buy-back In million euros Free cash flow: €156m Operating Change in cash working flow(1) capital(1) -61 Capex -58 Restructuring Dividends +290 Share -15 -70 Buyback BD & milestones Closing Opening -29 Othe
Slide 19: Key financial takeaways
Key financial takeaways Group sales up 10.4% at constant currency Strong Core Operating Income margin of 22.3%(1) Consolidated net profit of €190.7m, up 23.8% year-on-year Fully diluted core EPS of €2.78, up 25.2% year-on-year Closing cash balance of €214m, up 19% Proposal to maintain a dividend of
Slide 20: Cabozantinib in-licensing and outlook
Cabozantinib in-licensing and outlook Marc de Garidel Chairman and CEO
Slide 21: Exclusive license agreement with Exelixis for Cabozantinib
Exclusive license agreement with Exelixis for Cabozantinib, with key indication in Renal Cell Carcinoma (RCC) Exclusive global licensing and commercialization rights (ex North America & Japan) Key indications Medullary Thyroid Renal Cell Hepatocellular Cancer Carcinoma Carcinoma Marketed Filed in 2n
Slide 22: Cabozantinib, a best in class showing positive PFS and OS data
Cabozantinib, a best in class showing positive PFS and OS data RCC 1st line treatments Standard of care: TKI(1)s 2nd line treatments Approved therapies Potential entrants TKI(1)s and mTOR inhibitors Cabozantinib Immunomodulators PFS only, no OS PFS, OS and ORR OS only, no PFS RCC 2nd line treatment
Slide 23: Strong rationale for Cabozantinib in-licensing
Strong rationale for Cabozantinib in-licensing Acquire a potential best in class derisked asset in attractive niche RCC with solid scientific data triggering treatment paradigm shift Completion of a global oncology therapeutic footprint (US and Europe) Reinforce Ipsen portfolio in niche oncology wit
Slide 24: Cabozantinib, deal terms and impact on Ipsen operations
Cabozantinib, deal terms and impact on Ipsen operations Upfront: $200m Milestones Regulatory: up to $110m ($60m for RCC and $50m for HCC indications) Commercial: up to $545m Royalties Tiered up to 26% on net sales Transfer of MTC Market Authorization in H2 2016 and RCC launch starting in 2
Slide 25: 2016 financial objectives
2016 financial objectives Specialty care sales Growth > 10.0%, year-on-year At constant currency Primary care sales Slight growth, year-on-year At constant currency Core Operating margin Around 21% of sales Including a negative impact of: • ~150 basis points resulting from the investment required to
Slide 26: Update of 2020 financial outlook
Update of 2020 financial outlook Group sales Core Operating margin > 7% >+370bps > €2.0bn > 26% Specialty €1.4bn care 22.3% Specialty care >8% Primary [2% to 4%] Primary care care CAGR 2015 2020E 2015 2020E 2020 Sales target increased to reflect Cabozantinib sales contribution 2020 Profitability tar
Slide 27: 2016 roadmap
2016 roadmap Position Somatuline® as a leader in NET and secure Dysport® spasticity launch Implement new Primary Care OTx model, notably in China Prepare the commercial launch of Cabozantinib for the treatment of Renal Cell Carcinoma in Europe Continue Business development to replenish pipeline and
Slide 28: Thank you
Thank you