ScinoPharm Taiwan, Ltd. · TWSE:1789

ScinoPharm Taiwan — Investor Presentation (January 2013)

38 slides from ScinoPharm Taiwan's investor presentation, January 2013

  1. Slide 1: ScinoPharm Management Presentation

    ScinoPharm Management Presentation TWSE 1789 January, 2013 1

  2. Slide 2: Disclaimer

    Confidential Disclaimer This material has been prepared by ScinoPharm Taiwan, Ltd. (“ScinoPharm”). Any opinions expressed in this material are subject to change without notice as a result of using different assumptions. ScinoPharm is under no obligation to update or keep current the information cont

  3. Slide 3: Table of Content

    Table of Content Overview of ScinoPharm Financial & Operation Results ScinoPharm’s opportunities and competition in China API Market Business Outlook Q&A 3

  4. Slide 4: Overview of ScinoPharm

    Overview of ScinoPharm - An Active Pharmaceutical Ingredient Company 4

  5. Slide 5: Background

    Confidential Background  Established in 1997 in Taiwan by founders from Syntex, current market cap ~ US$1.3 billion  Major shareholders include Uni-President Group, Government’s Development Fund, Taiwan Sugar, etc.  Facility & organization built by experienced team from Syntex  Brand new facilit

  6. Slide 6: Company Overview

    Confidential Company Overview  Maintain dominant position in Specialty APIs for generic market. Established strong presence in US/EU generic market, some channeled through Indian generic companies. Aggressively developing Japanese and Chinese markets  Developed ~60 generic APIs with 21 launched. F

  7. Slide 7: World Class Facilities

    World Class Facilities Taiwan China  6.6 hectares of land, 330K sqft facilities  With nearly 250M3 reactor volume with >200M3 reactor volume after 2 large product lines expansion  The first phase completed in Q1, 2012. The second phase completed in Q1/Q2  Eight of our production lines are 2013 e

  8. Slide 8: Recent developments in SPT & SPC

    Recent developments in SPT & SPC  SPT’s Bay 5 has started production in December 2012, Bay 4 will start production in early 2013  SPC’s phase I production facilities have obtained pharmaceutical production permits from local authorities  SPC’s phase I small, mid, and large production lines (total

  9. Slide 9: ScinoPharm - Oncological API Leader

    Confidential ScinoPharm - Oncological API Leader 9

  10. Slide 10: Comparison among Taiwan API peers

    Comparison among Taiwan API peers ScinoPharm is a leader in DMFs and Patents Other Taiwanese API Co.’s ScinoPharm A B C # of DMFs 43 14 11 9 # of patents since 1997 38 9 6 5 10

  11. Slide 11: CPhI

    CPhI Convention on Pharmaceutical Ingredients CPhI holds more than 5 major exhibits/year  CPhI Madrid, Oct. 9-11, 2012  CPhI India, Nov. 21-23, 2012  CPhI California w/ informEx, Feb. 20-22, 2013  CPhI Japan, Apr. 24-26, 2013  CPhI China, Jun. 25-27, 2013  CPhI Germany, Oct. 22-24, 2013 11

  12. Slide 12: ScinoPharm at CPhI Madrid

    ScinoPharm at CPhI Madrid Convention center 12

  13. Slide 13: ScinoPharm at CPhI Madrid

    ScinoPharm at CPhI Madrid Convention entrance 13

  14. Slide 14: ScinoPharm at CPhI Madrid

    ScinoPharm at CPhI Madrid ScinoPharm Booth 14

  15. Slide 15: ScinoPharm at CPhI Madrid

    ScinoPharm at CPhI Madrid ScinoPharm meeting with clients 15

  16. Slide 16: ScinoPharm at CPhI Madrid

    ScinoPharm at CPhI Madrid Business meetings 16

  17. Slide 17: ScinoPharm at CPhI Madrid

    ScinoPharm at CPhI Madrid Business meetings 17

  18. Slide 18: ScinoPharm at CPhI Madrid

    ScinoPharm at CPhI Madrid Business meetings 18

  19. Slide 19: ScinoPharm at CPhI Madrid

    ScinoPharm at CPhI Madrid ScinoPharm delegates 19

  20. Slide 20: ScinoPharm at CPhI Madrid

    ScinoPharm at CPhI Madrid During 10/9~11 at CPhI Madrid, ScinoPharm had  Meetings with more than 100 clients  Categories of clients：  Generic pharma： 65%  New drug co.’s： 20%  Others： 15% (incl. agents and starting material suppliers) 20

  21. Slide 21: Observations from CPhI on API industry

    Observations from CPhI on API industry  Central/Eastern Europe generic market is fast-growing – ScinoPharm has connected to the market  Brazil in South America and Indonesia in South East Asia are two potential markets  India’s strategy to bring global recognition to its quality  EU’s new regula

  22. Slide 22: Financial & Operation Results

    Financial & Operation Results 22

  23. Slide 23: P&L - Consolidated

    P&L - Consolidated 1~3Q, 2012 1~3Q, 2011 NT$MM, except EPS (reviewed) (reviewed) YoY Net Sales 3,168 2,824 12% Gross Profit 1,601 1,387 15% Gross margin 50% 49% Operating Expense (735) (600) 23% Operating Income 866 787 10% Operating margin 27% 28% Other Rev.(Exp.) 16 (24) 167% Net Income after Tax

  24. Slide 24: Balance Sheet- Consolidated

    Balance Sheet- Consolidated NT$MM 2012/09/30 2011/09/30 (reviewed) (reviewed) Cash and Cash Equivalents 2,303 24% 3,195 36% Accounts Receivable 959 10% 669 7% Inventories 1,962 20% 1,403 16% Long-Term Investments 150 2% 195 2% Fixed Assets 3,609 38% 3,099 35% Other Assets 562 6% 404 4% Total Assets

  25. Slide 25: Cash Flows- Consolidated

    Cash Flows- Consolidated 1~3Q, 2012 1~3Q, 2011 NT$MM (reviewed) (reviewed) Cash and cash equivalents at 3,294 1,908 beginning of period Cash flows from operating activities 314 922 CAPEX (619) (497) Cash flows from financing activities (631) 898 Other Investing activities (55) (36) Cash and cash equ

  26. Slide 26: Sales by Business

    Sales by Business 2011 1-9 2012 1-9 CMO, 9% CRO, 2% CMO, 15% CRO, 3% Generic, 82% Generic, 89% 26

  27. Slide 27: Sales by Indications

    Sales by Indications 2011, 1-9 2012, 1-9 Others, Others, 11% 15% CNS, 16% Oncology, 57% Oncology, CNS, 32% 69% 27

  28. Slide 28: Sales by Region

    Confidential Confidential Sales by Region 2011, 1-9 2012, 1-9 ROW ROW <1% <1% Asia Asia US & CAN US & CAN 26% US & CAN 20% 33% AU & NZ 38% US & CAN AU & NZEU 36% 4% EU 47% 5% 32% 30% EU EU 33% Asia 29% Asia 28% 26% Out of the 20% Asia sales in 2012, India was 11%, rest of Asia was 9% 28

  29. Slide 29: ScinoPharm's opportunities and competition in China API Market

    ScinoPharm’s opportunities and competition in China API Market 29

  30. Slide 30: China API market trends

    Confidential China API market trends  Government’s 12th five-year plan sets a goal for pharmaceutical industry to grow at a CAGR of 20%, and  Explicitly requires 100% compliant with the latest GMP for nationwide pharma manufacturing. Also encourages pharma co.’s to apply for int’l certifications.

  31. Slide 31: ScinoPharm aims on China Market

    Confidential ScinoPharm aims on China Market  ScinoPharm exports APIs to China market and has 6 customers  ScinoPharm Changshu complies with latest GMP standards and will benefit from the reduced competition after 12th five-year plan drives out disqualified companies  ScinoPharm’s specialty in on

  32. Slide 32: SPC's Strategic Goals

    Confidential SPC’s Strategic Goals Short-term goal: 1 year Expand capacities – To be able to produce intermediates and provides expanded capacities for SPT Mid-term goal: 3 years Adopt Double A (API+ANDA) business model – To team up with pharma co.’s to apply for ANDA in US/EU and export final drug

  33. Slide 33: ScinoPharm Vs. Chinese API Peers

    Confidential ScinoPharm Vs. Chinese API Peers ScinoPharm Chinese API Peers Focus on high entry-barrier Mostly producing lower entry- oncological APIs. Less barrier APIs. Fierce competition, higher margin competition, lower margin Mostly focusing on domestic Marketing globally, competitive market, pr

  34. Slide 34: ScinoPharm's "Double A" plan

    ScinoPharm’s“Double A”plan  Strategic Alliance ScinoPharm is in discussion with one of the top 3 Chinese pharma co.’s to develop oncological drugs for China market  Drug Product Co-development ScinoPharm is partnering with a marketer and a formulation producer to co-develop oncology injectables fo

  35. Slide 35: Business Outlook

    Business Outlook 35

  36. Slide 36: 2013 Product Launch Plan

    2013 Product Launch Plan Brand API Region Indications Marketer Regional Sales WW Sales MDS, Azacitidine US Pharmion US$331.3MM* US$729.7MM* Anti-neoplastic MDS, Decitabine US MGI Pharma US$238.0MM* US$249.1MM* Anti-neoplastic Docetaxel Anhydrous, JP Anti-neoplastic Sanofi Aventis US$236.9NM** US$2,0

  37. Slide 37: Outlook

    Outlook  Sustain Leadership Position in Oncological Injectable APIs Continue developing small molecule oncological injectable APIs and expand into other areas with high technology barriers including Peptides  Expand Presences in China Expansion of API business to timely capture the Chinese market

  38. Slide 38: Brand Quality with Asian Advantages

    Confidential Brand Quality with Asian Advantages www.scinopharm.com 38

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