Mayne Pharma Group Ltd. · ASX:MYX
Mayne Pharma — Mayne Group — Corporate Update (September 2004)
24 slides from Mayne Pharma's corporate update, Sep 24, 2004
Slide 1: Company briefing materials cover letter
24 September 2004 Mayne Group Limited Company Announcements Office ABN 56 004 073 410 Australian Stock Exchange Level 21 Level 4 390 St Kilda Road Melbourne Vic 3004 20 Bridge Street Phone 61 3 9868 0767 Sydney NSW 2000 Fax 61 3 9868 0757 Dear Sir Company briefing materials Attached please find copi
Slide 2: Wasserburger Site Visit
Mayne Group Limited Wasserburger Site Visit Wasserburg, Germany 24 September 2004
Slide 3: Agenda
Agenda • EMEA business update Scott Richards, President EMEA • Overview of Wasserburger Arzneimittelwerk GmbH Dr Helmut Lix, General Manager • Wasserburger integration review Stefan Cross, Integration Manager • ‘Questions & Answers’ • Site tour Hubert Zuber, Production Director Dr Bernhard Kiefl, As
Slide 4: EMEA update
EMEA update • Paxene® / “Paclitaxel Mayne” launch phase well underway • Wasserburger product introduction ahead of schedule • Irinotecan MRP* roll-out to EU accession countries in progress • Epirubicin launch on track Paxene® is a registered trademark of Ivax Research, Inc., used under license. * MR
Slide 5: EMEA financial performance
EMEA financial performance Currency adjusted revenue $AU millions 104.4 98.9 100 88.9 80 74.1 69.7 68.9 60 40 20 0 1H02* 2H02* 1H03* 2H03* 1H04 2H04 UK Europe Middle East EMEA has a strong track record of growth * Prior years re-based to Dec 2003 average FX rates (A$2.4195 = £1.00; A$1.6903 = €1.00)
Slide 6: EMEA growth
EMEA growth Revenue $AU million 100% 24.5 Middle East 23.4 90% 80% % of EMEA Revenue 70% 73.8 73.1 UK 60% 50% 40% 52.1 Europe - 41.0 PT/IE/ES/Benelux/Other 30% 20% 38.6 52.9 10% Europe - IT/DE/FR/Nordic 0% FY03 FY04 Continental Europe now accounts for over 50% of EMEA revenue – with ongoing growth p
Slide 7: Wasserburger acquisition rationale
Wasserburger acquisition rationale • World class – FDA/EU certified • Freeze-drying capability • Substantial capacity headspace for Mayne products • Half the cost of constructing same operations • European/Munich location • Profitable and loyal contract customer base
Slide 8: Agenda
Agenda • EMEA business update • Overview of Wasserburger Arzneimittelwerk GmbH Dr Helmut Lix, General Manager • Wasserburger integration review • ‘Questions & Answers’ • Site tour
Slide 9: Business summary
Business summary • Established in 1974 - 30 years of established business history • A pure contract manufacturing business • Specialises in injectable freeze dried and solution vial products • Approved by FDA and European regulatory bodies – 2004 Germany local health authority inspection – 2001 FDA
Slide 10: City of Wasserburg
City of Wasserburg • One hour south east from Munich airport. One hour east from downtown Munich • Located in region of Bavaria • circa. 10,000 residents Munich Airport Wasserburg am Inn • History as market town – trading salt from Salzburg transported via River Inn • WASSER (Water) + BURG (Castle)
Slide 11: Wasserburger site
Wasserburger site Building 1 – 1974 - acquired from previous owner (constructed c.1970) Production Area 1 – commissioned 1974 Production Area 2 – commissioned 1985 500m to leased inspection and packing facility Production Area 2 BUILDING 1 Production Area 1 Warehouse c.1980 Inspection / Packing Prod
Slide 12: Wasserburger team
Wasserburger team Dr Helmut Lix General Manager 31 Hubert Zuber Dr F X Huber Dr Markus Färber Horst Marcs Production Director Head Quality Control Head Quality Assurance Head Engineering 25 20 10 30 Purchasing Manufacturing QC Quality Maintenance, laboratories Inspection & Assurance Engineering Pack
Slide 13: Business and customer profile
Business and customer profile Product Destination Customer Type Top 5 Customers % of FY04 revenue % of FY04 revenue % of FY04 revenue “Big” RoW Pharma “A” 20% 12% 24% Balance Generic Specialty Germany 40% Pharma Pharma 52% “B” USA 58% 30% 13% 28% “E” “D” “C” 7% 7% 9% • 30 active contract customers •
Slide 14: World class capability
World class capability • Proven ability to introduce new molecules (both proprietary and generic) • Well maintained facility - extremely clean environment • Upgraded laboratories and plant services • Exceptional manufacturing assets • Advanced equipment from leading European providers
Slide 15: Agenda
Agenda • EMEA business update • Overview of Wasserburger Arzneimittelwerk GmbH • Wasserburger integration review Stefan Cross, Integration Manager • ‘Questions & Answers’ • Site tour
Slide 16: Integration program design
Integration program design Introduce high-volume freeze dried Mayne products, offering opportunity for growth in selected EU markets 2. Introduce Mayne Products 1. Protect Contract 3. Operational alignment Business with Mayne Ensure contract business is Business systems, maintained and not procedure
Slide 17: 1. Protect contract business
1. Protect contract business • Active retention program – Production activity has been maintained post-acquisition – EBITA contribution to plan • Completion of Production Area 3 in August 2004 – Fully validated and operational – Underpins #1 customer contract – Supports introduction of Mayne product
Slide 18: 2. Introduce Mayne products
2. Introduce Mayne products • Experienced project team established in June 2004 – Dedicated project manager appointed – Leveraging Wasserburger’s 30 year experience in product introductions • Calcium Folinate – Complete. German market launch planned October 2004 • New high-volume freeze dried ‘pipel
Slide 19: 3. Operational alignment
3. Operational alignment • Integration of functional activities – Company and tax structuring (near complete) – IT / network connectivity (100% complete) – Finance systems integration (early stage – 10 month project)
Slide 20: Platform for capability extension
Platform for capability extension Expansion of Inspection and Packing Capabilities Option to leverage existing operations to provide a more agile European supply chain 2. Introduce Mayne 4. Extend European Products Capabilities 1. Protect Contract 3. Operational alignment Business with Mayne Establi
Slide 21: Agenda
Agenda • EMEA business update • Overview of Wasserburger Arzneimittelwerk GmbH • Wasserburger integration review • ‘Questions & Answers’ • Site tour
Slide 22: Wasserburger Arzneimittelwerk
Wasserburger Arzneimittelwerk • A financially attractive, timely, low risk solution to support Mayne’s growth strategy – Half the cost of building a similar facility from scratch – World class manufacturing facility – Existing, EBITA accretive contract business – Exceptional capabilities in manufact
Slide 23: Agenda
Agenda • EMEA business update • Overview of Wasserburger Arzneimittelwerk GmbH • Wasserburger integration review • ‘Questions & Answers’ • Site tour Hubert Zuber, Production Director Dr Bernhard Kiefl, Assistant Production Director
Slide 24: Site fact sheet: Wasserburg, Germany
Mayne Pharma Sterile injectable contract manufacturing business Wasserburg, Germany Site fact sheet Site history Site size Established in 1974, the Wasserburg facility was Primary site founded by the company Madaus AG to provide in- - Total land area – 28,000m2 house freeze drying of aseptic pharmac