ScinoPharm Taiwan, Ltd. · TWSE:1789
ScinoPharm Taiwan — Investor Presentation (April 2012)
36 slides from ScinoPharm Taiwan's investor presentation, Apr 18, 2012
Slide 1: ScinoPharm Management Presentation
ScinoPharm Management Presentation TWSE 1789 Jo Shen, Ph.D. President & CEO April 18, 2012
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
Slide 3: Table of Content
Confidential Table of Content Overview of ScinoPharm Financial & Operation Results New Market Developments Business Outlook Q&A 3
Slide 4: Overview of ScinoPharm
Overview of ScinoPharm 4
Slide 5: Company Overview
Confidential Company Overview Maintain dominant position in Specialty APIs for generic market Developed more than 50 generic APIs with 16 launched, provided to ~300 top tier customers Filed 41 DMFs in US (592 DMFs WW), leader in supplying oncology injectable APIs with 19 US DMFs, far exceeding other
Slide 6: Company Overview – cont’d
Confidential Company Overview – cont’d Heavy emphasis on R&D, with 91 patents granted worldwide to 19 inventions Established strong presence in US/EU generic market, some channeled through Indian generic companies. Began to develop Japanese and Chinese markets Expanding both Taiwan and China facilit
Slide 7: World Class Facilities
Confidential 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 Six of our production lines are equ
Slide 8: ScinoPharm – Top Ranking in Oncology DMF among API companies
Confidential ScinoPharm – Top Ranking in Oncology DMF among API companies 8
Slide 9: Top Generic APIs Account for 66% of 2011 sales
Confidential Top 5 Generic APIs Account for 66% of 2011 sales 2011 # of US DMF/EDMF & API Indications projected other Filings MKT Share* Docetaxel 38% Anti-Cancer 53 Anhydrous (WW) 44% Irinotecan HCI Anti-Cancer 47 (WW) 49% Galantamine HBr Alzheimer’s disease 36 (WW) 21% Paclitaxel Anti-Cancer 47 (W
Slide 10: Financial & Operation Results
Financial & Operation Results 10
Slide 11: P&L - Consolidated
Confidential P&L - Consolidated FY 2011 FY 2010 NT$MM, except EPS YoY (audited) (audited) Net Sales 3,954 3,891 2% Gross Profit 1,984 2,034 -2% Gross margin 50% 52% Operating Expense (851) (811) 5% Operating Income 1,133 1,223 -7% Operating margin 29% 31% Other Rev.(Exp.) 2 (27) n.a. Net Income afte
Slide 12: Balance Sheet- Consolidated
Confidential Balance Sheet- Consolidated NT$MM 2011/12/31 2010/12/31 (audited) (audited) Cash and Cash Equivalents 3,294 35% 1,908 26% Accounts Receivable 844 9% 731 10% Inventories 1,465 15% 1,244 17% Long-Term Investments 192 2% 241 3% Fixed Assets 3,227 34% 2,812 39% Total Assets 9,480 100% 7,298
Slide 13: Cash Flows- Consolidated
Confidential Cash Flows- Consolidated FY 2011 FY 2010 NT$MM (audited) (audited) Cash and cash equivalents at 1,908 740 beginning of year Cash flows from operating activities 1,294 1,564 CAPEX (761) (349) Long-Term Investment - (226) Issuance of common stock 957 1,173 Repayment of Long-Term Loans - (
Slide 14: Sales by Business
Confidential Sales by Business 2010 2011 CMO CMO 2.5% 13.4% CRO CRO 6.6% 2.4% Generic Generic 90.9% 84.2% 14
Slide 15: Sales by Indications
Confidential Sales by Indications 2010 2011 Others Others 29.6% 37.8% 學名藥 90.91% 15
Slide 16: Sales by Region
Confidential Sales by Region 2010 2011 ROW ROW AU & NZ 1% AU & NZ <1% 6% 6% US & CAN US & CAN 33% 38% EU EU 32% 30% Asia Asia 28% 26% Out of the 26% Asia sales in 2011, India was 17%, rest of Asia was 9% 16
Slide 17: New Market Developments
New Market Developments 17
Slide 18: Japan
18 Japan oOo eh REIL AIRS a @09 ScinoPharm Taiwan, Ltd. u
Slide 19: Continued API Growth in Asia
Continued API Growth in Asia Asia is the third largest regional market for APIs by revenue in the world after North America and Europe ：CAGR ~ 6.7% 2005-2010： ：CAGR ~ 9.6% (vs. 3-6% WW) 2010-2016： Japan is the largest API market in Asia, 42.8% in 2010 Others, 18.0% Korea, Japan, 8.1% 42.8% India, 10
Slide 20: Japanese Generic Landscape
Japanese Generic Landscape The second largest individual market after the US, presenting a significant growth potential Japanese government set a goal for the generic penetration rate from current 19% to 30% in volume by 2012 Most domestic demand of generic APIs depends on imports, especially for on
Slide 21: First Tier Japanese Companies
First Tier Japanese Companies TOP 10 Generic Companies 2010 Sales (US$ Billion) Sawai 0.822 Nichiiko 0.810 Taiho 0.662 (acquired by Teva) Towa 0.594 Nipro 0.486 Shiono Chemical 0.294 Fuji 0.254 Kobayashi Kako 0.197 Yoshindo 0.171 Ohhara 0.166 TOP 5 Brand name Companies 2010 Sales (US$ Billion) Taked
Slide 22: Booming Market in Japan
Booming Market in Japan As the first Taiwanese API ScinoPharm’s Sales Growth in Japan company qualified by PMDA, Unit: USD M ScinoPharm aims to capitalize on its qualified APIs and expand into CRAM business With Gemcitabine HCl, Irinotecan HCl, Exemstane and Isoconazole marketed in Japan (one item h
Slide 23: Growing Customer Base in Japan
Growing Customer Base in Japan Develop close relationships with leading pharmaceutical companies in Japan, all of them hold significant and stable market shares Aim to be a vital API supplier to the generic pharmaceutical and brand name drug companies in Japan within next 3-5 years 2012 2013 Year 20
Slide 24: US/EU via India
US/EU via India od ” O20 B75 PE ARIG WIR o Bl @09 ScinoPharm Taiwan, Ltd. u
Slide 25: India – A Passage to US/EU markets
India – A Passage to US/EU markets More and more US/EU pharma outsourced formulations to Indian companies due to their maturity in the industry, low-cost production, comparable quality, and language skill 175 Indian pharma companies have been qualified for US FDA standards. Indian ownership of appro
Slide 26: Top 10 Indian Pharma Companies
Top 10 Indian Pharma Companies Revenue 2010 Rank Pharma Co. (USD $MM) 1 Cipla 1,348.5 8 out of the top 10 2 Ranbaxy 1,327.6 are ScinoPharm’s 3 Dr. Reddy’s Lab 1,178.0 customers 4 Lupin Ltd 929.8 5 Aurobindo 865.2 6 Dabur 700.3 7 Sun Pharmac 674.0 8 Cadila 629.5 9 Jubilant 561.0 10 Piramal 480.3 26
Slide 27: ScinoPharm - Broad Customer Base in India
ScinoPharm - Broad Customer Base in India Customers 2006 2007 2008 2009 2010 2011 2012 (est.) # of New additions 13 3 8 5 8 2 3 # of accumulated customers 13 16 24 29 37 39 42 27
Slide 28: ScinoPharm Successfully Penetrated US/EU Markets Through India
ScinoPharm Successfully Penetrated US/EU Markets Through India ScinoPharm’s Business via India (2006 - 2012) 28
Slide 29: China
29 China 2a ee ScinoPharm
Slide 30: China the 3rd largest pharma market WW
China the 3rd largest pharma market WW In 2010, China has become the 3rd largest pharmaceutical market in the world, only next to USA and Japan, and was the fastest growing market China market will continue to grow at a CAGR of 22% from US$ 41 billion in 2010 to US$ 125 billion in 2015 ScinoPharm Ch
Slide 31: GMP in China
GMP in China To consolidate pharma industry, enhance its competitiveness, a new version of GMP was issued on Marh 1, 2011 with a grace period of 5 years It is expected that at least more 500 pharmaceutical companies will not survive To meet the new requirement, it is estimated that CAPEX in the rang
Slide 32: ScinoPharm in China
ScinoPharm in China ScinoPharm ChangHsu (China) has been established to catch the rapidly expanding pharmaceutical opportunities Oncology is the second largest category of drugs in China Among the top 20 oncology products in China, 9 of them are on ScinoPharm’s product list Began developing the mark
Slide 33: Business Outlook
Business Outlook 33
Slide 34: 2012 Product Launch Plan
2012 Product Launch Plan Regional WW Sales API Region Indications Brand Marketer Sales Antithrombotic, $US $US Argatroban US GSK Anticoagulant 139MM* 205MM* Galantamine Alzheimer’s $US $US EU Janssen HBr disease 314MM* 527MM* $US $US Modafinil US Antinarcolepsy Cephalon 1,078MM* 1,182MM* Riluzole $U
Slide 35: Outlook
Confidential Outlook Sustain Our Current Leadership Position Continue developing small molecule oncological injectable APIs and expand into other areas with high technology barriers including Peptides and Biopharmaceutical Expand Presences in China Expansion of API business to timely capture the Chi
Slide 36: Brand Quality with Asian Advantages
Confidential Brand Quality with Asian Advantages www.scinopharm.com 36
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