Ipsen Sa · EURONEXT:IPN
Ipsen Sa — FY2011 Earnings Presentation
43 slides from Ipsen Sa's earnings presentation, 2012
Slide 1: Ipsen 2011 Financial Results Roadshow
Ipsen 2011 Financial Results Roadshow Full Year 2011 Results
Slide 2: Disclaimer
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: Overview of 2011 performance
Overview of 2011 performance Ipsen – Full Year 2011 Results
Slide 4: 2011 performance
2011 performance Solid operational performance with drug sales up 5.7%(1) y-o-y and recurring adjusted(2) operating income, up 9.6% y-o-y Significant impairment charges and one-off costs Financial guidance met on a recurring adjusted basis New strategic direction with first milestones achieved Strat
Slide 5: In June 2011, Ipsen announced and started to implement its new strategy
In June 2011, Ipsen announced and started to implement its new strategy Increase Focus Invest to Grow Leverage Footprint A market-oriented franchise model… …driving an R&D patient centric organization focused on peptides and toxins Defined 2020 strategy Uro-Oncology franchise reinforced Renewe
Slide 6: Inspiration's impairment rationale: IAS 39 does not reflect economic value
Inspiration’s impairment rationale : IAS 39 does not reflect the economic value of the deal for Ipsen Inspiration Ipsen ~22% of ordinary shares FULLY IMPAIRED ~19% additional ownership on a fully PARTIALLY IMPAIRED diluted basis (convertible bonds) • Potential revenue generated by the 27.5% royalty
Slide 7: 2012, an important year in Ipsen's transformation
2012, an important year in Ipsen’s transformation
Slide 8: 2012, an important year in Ipsen's transformation to fulfill its 2020 ambition
2012, an important year in Ipsen’s transformation to fulfill its 2020 ambition Partner primary care France as Maintain high single digit profitability deteriorates specialty care growth and double digit emerging markets growth A B Ipsen’s 2012 Progress rich late E missions C Relaunch US stage pipeli
Slide 9: A - Find a partner for primary care France as profitability deteriorates
A - Find a partner for primary care France as profitability deteriorates Ipsen Potential partner Reach critical mass to be positioned among market leaders Maximize brand equity with complementary product range Leverage dedicated sales force on Rx and OTx segments Manage mature product life cycle Sha
Slide 10: B - Maintain high single digit specialty care growth and double digit emerging markets growth
B - Maintain high single digit specialty care growth and double digit emerging markets growth Specialty Care Products Geographies • Somatuline®: – Continued strong performance in Europe and the US – Strong and growing market share in South America • Dysport®: – Growth in Europe, Russia and Brazil –
Slide 11: C - Relaunch the US operations
C - Relaunch the US operations : two main objectives to increase profitability New Organization Dysport® • New HQ to open in NJ in April 2012 • Sales force excellence: • Implementation well under way : – Major overhaul with renewal of 40% of – Full leadership team hired sales force – 130 FTEs hired
Slide 12: D - Accompany Inspiration's success
D - Accompany Inspiration’s success File IB1001 in the US in H1 2012 Get ready for IB1001’s launch in Europe in early 2013 Progress both OBI-1 phase IIIs. Address Inspiration’s financing needs A win-win partnership 12 Ipsen – Full Year 2011 Results
Slide 13: E - Progress rich late stage pipeline
E - Progress rich late stage pipeline Phase 1 Phase 2 Phase 3 Filing Dysport® - Spasticity PUL Pending FDA type A meeting Dysport® - PLL Dysport® Dysport® - Spasticity AUL Neurology Dysport® - Spasticity ALL Glabellar Lines Dysport® - Next Generation Cervical Dystonia Dysport® - NDO Somatuline® - Ac
Slide 14: Transformation is progressing well, as planned
Transformation is progressing well, as planned 2011 2012 2013 2014 2015 Define strategy R&D « PoC » machine Somatuline® New TASQ filed in Inspiration option Merge R&D implemented device rolled out globally Europe assessment Reinforce oncology Uro- Barcelona R&D Dysport® A.& P. Somatuline®
Slide 15: 2012 Objectives
Outlook 2012 Objectives Specialty Care - Drug sales Growth of +8.0% to +10.0%, year-on-year Primary Care - Drug sales Decrease of approximately 15.0%, year-on-year approximately 15.0% of sales Recurring Adjusted* operating This objective includes declining profitability of primary care in margin Fra
Slide 16: Overview of Ipsen's strategy
Overview of Ipsen’s strategy
Slide 17: Over the last decade, Ipsen has adapted to a fast changing environment
Over the last decade, Ipsen has succeeded in adapting to a fast changing environment Evolution of Ipsen’s sales profile… …driven by Specialty care € 698m € 1,160 m Endocrinology o/w Somatuline® 2002-2011 CAGR: 16.9% Primary Specialty Profile Primary Specialty Care Care Care Care ~35% ~65% Neurology
Slide 18: New strategy aims at leveraging Ipsen's core strengths to become a global leader
New strategy aims at leveraging Ipsen’s core strengths to become a global leader in targeted debilitating diseases Increase Focus Invest to Grow Leverage Footprint A market-oriented franchise model… …driving an R&D patient centric organization focused on core platforms, peptides and toxins. More tha
Slide 19: R&D to focus on differentiated technological platforms: Peptides and Toxins
INCREASE FOCUS R&D to focus on 2 differentiated technological platforms… Peptides Toxins • Knowledge of hormonal pathways • Track record expertise in botulinum toxin with Dysport® • Extensive knowledge of peptide design and chemistry • Pharmacological, preclinical and clinical expertise in Botulinum
Slide 20: Supported by franchises focus along the whole value chain
INCREASE FOCUS …supported by franchises focus along the whole value chain… R&D push Franchise pull Early dev. Late dev. Research Manufacturing Operations (end of PhIIa) (PhIIb & PhIV) Endocrinology/ Somatuline® Neurology/ Dysport® Uro-oncology/ Decapeptyl® Ipsen or Partner Ipsen
Slide 21: Somatuline, a differentiated device and formulation
INVEST TO GROW - ENDOCRINOLOGY Somatuline®, a differentiated device and formulation Novartis 10 step reconstitution needed IM Ipsen Ready to use Pre-filled syringe SC • Ready to use, retractable needle for full dose release and safety • Self administration* • Health economic benefit • Extended dosin
Slide 22: Ambition: triple Somatuline sales by 2020
INVEST TO GROW - ENDOCRINOLOGY Ambition : triple Somatuline® sales by 2020 across all key levers Leverage product differentiation Investment and Improve visibility & capabilities clinical development Key Now Partnerships Tomorrow Geographic and indication footprint NET and the US : two main growth d
Slide 23: Dysport: a solid second player in the botulinum toxin market
INVEST TO GROW - NEUROLOGY Neurology/ Dysport®: a solid second player in the botulinum toxin market Toxin market:~€1.35bn in 2010 Dysport® indications USA ~ 50% global BonTA market in 2010 Ex North America North America Therapeutic ~58% Aesthetics ~42% Aesthetic use Aesthetic use Blepharospasm Hemif
Slide 24: Ambition: triple Dysport sales by 2020
INVEST TO GROW - NEUROLOGY Ambition : triple Dysport® sales by 2020 across all key levers Leverage footprint Investment New indications Key Now Innovation Improve Medical Tomorrow Narrative & relationship Spasticity and the US: two main growth drivers 24 Ipsen – JP Morgan 2012
Slide 25: Uro-oncology: a franchise with renewed growth opportunities
INVEST TO GROW – URO-ONCOLOGY Uro-oncology: a franchise with renewed growth opportunities Hexvix® for bladder cancer detection Tasquinimod for castrate resistant tumors Once a day oral formulation in PhIII Decapeptyl® for hormone-sensitive tumors Significant market shares in Europe and China 25 Ipse
Slide 26: Ipsen and Inspiration aiming at all levels of the coagulation cascade
INVEST TO GROW – HEMOPHILIA Ipsen and Inspiration are aiming at all levels of the coagulation cascade for the treatment of hemophilia A full fledged …with a broad An $8bn market hemophilia potential A high margin market franchise, with inhibitor therapy potentially offering (OBI-1, 2 products
Slide 27: Hemophilia: Ipsen now has 40.7% of fully diluted ownership of Inspiration
INVEST TO GROW – HEMOPHILIA Hemophilia: Ipsen now has 40.7% of fully diluted ownership of Inspiration Today c.40.7% fully diluted 100% ownership c.48.1% Fully 5 remaining diluted clinical and ownership regulatory 29%* milestones on OBI-1 and IB- 21.6% 1001 2010 Initial equity stake: OBI-1 PhIII Fili
Slide 28: E - Progress rich late stage pipeline
E - Progress rich late stage pipeline Phase 1 Phase 2 Phase 3 Filing Dysport® - Spasticity PUL Pending FDA type A meeting Dysport® - PLL Dysport® Dysport® - Spasticity AUL Neurology Dysport® - Spasticity ALL Glabellar Lines Dysport® - Next Generation Cervical Dystonia Dysport® - NDO Somatuline® - Ac
Slide 29: Ipsen enjoys a strong geographical reach
LEVERAGE FOOTPRINT Ipsen enjoys a strong geographical reach Dysport ® ~35% Ipsen recorded sales in 115 countries in 2010 Decapeptyl ® ~11% Dysport ® ~50% Somatuline ® ~45 % Dysport ® ~80% Decapeptyl ® ~12% Decapeptyl ® ~41% Dysport ® just launched Somatuline ® ~38%* Dysport ® ~35% Dysport ® ~40% Dys
Slide 30: Full-year 2011 financial performance
Full-year 2011 financial performance
Slide 31: Summary of 2011 P&L and evolution
2011 detailed financial performance Summary of 2011 P&L and evolution In million euros 2010 2011 Growth (%) Sales 1,100.2 1,159.8 +5.4% Total Revenues 1,170.3 1,234.9 +5.5% Operating Income 128.8 75.8 (41.2)% Recurring adjusted operating income(1) 183.2 200.7 +9.6% Consolidated Net Profit (attributa
Slide 32: FY 2011 Sales: Specialty products account for 66% of total sales
2011 detailed financial performance FY 2011 Sales : Specialty products account for 66% of total sales in million euros Decapeptyl ® +5.0% 283.6 Dysport ® +11.3% 204.6 Specialty care Somatuline ® +10.9% 188.4 Speciality care NutropinAq ® +4.8% 50.9 €759.4m Increlex ® +0.2% 25.2 Drug +8.0% ® sales Apo
Slide 33: Other revenues evolution
2011 detailed financial performance Other revenues evolution Other revenues evolution: +7.1% Royalties Received Up 46,6% y-o-y, driven by the increase in 70.1 75.1 royalties paid by Medicis, Galderma and Menarini +46,6% 9.1 6.2 Other revenues 30.3 Revenues from Inspiration Inc. for OBI-1 In mill
Slide 34: Evolution of main P&L items: above operating result
2011 detailed financial performance Evolution of main P&L items: above operating result Research & Development (€m) COGS (% of sales) +14.7% as reported +5.5% +13.3 % W/O OBI-1’s development costs 253.6 Industrial 221.1 236.2 249.2 +24.0% development (includes OBI-1 process development costs) +14.2%
Slide 35: Recurring adjusted Operating Income has improved by 9.6%
2011 detailed financial performance Recurring adjusted Operating Income has improved by 9.6% in million euros 48.7 48.7 16.6%(1) 100.2 2.9 11.7%(1) 2010 A 183.2 128.8 Reported Impairment Roche Others Recurring (41.2%) EBIT Adjusted +9.6% EBIT reported recurring 17.3%(1) adjusted 85.2 13.0 52.7 200.7
Slide 36: Below EBIT evolution
2011 detailed financial performance Below EBIT evolution Financial result (€m) Effective tax rate Inspiration 17.2% Positive change conv. Bonds Recurring 19.7%1 impact: € 7.2m 2010 A reevaluation effective tax Recurring rate(1) effective tax (3.4) rate(1) 2011 A 13.5% 2010 A 2011 A (34.4) Inspiratio
Slide 37: Published figures impacted by impairment losses and costs related to new strategy
In 2011, published figures were impacted by significant impairment losses and costs related to new strategy Restructuring Fees & 2011 Actual (in million euros) 2011 Actual Inspiration Increlex® Others Others US & Barcelona others Recurring adjusted Value % Sales Value % Sales Net Sales 1 159,8 100,0
Slide 38: IAS 39 does not reflect the economic value of the deal for Ipsen
2011 detailed financial performance IAS 39 only deals with financial instruments i.e. does not reflect the economic value of the deal for Ipsen Inspiration Ipsen ~22% of ordinary shares FULLY IMPAIRED ~19% additional ownership on a fully PARTIALLY IMPAIRED diluted basis (convertible bonds) • Potenti
Slide 39: Total Inspiration impairment: €76.3m before tax
2011 detailed financial performance Total Inspiration impairment: €76.3m before tax Impairment recorded in distinct P&L lines What? Figure Impairment depreciation on €42.0m Other financial expense convertible bonds Impairment depreciation on Share of loss from associates equity share(1) + depreciati
Slide 40: Balance sheet evolution
2011 detailed financial performance Balance sheet evolution in million euros Assets Liabilities 2010 A 2011 A 2010 A 2011 A Goodwill 299.1 299.5 Equity 1 077.2 1 012.8 Investment in associated companies 57.9 0.0 Minority interests 2.0 2.6 (incl. Goodwill Inspiration Inc.) Property, Plans & 282.3 271
Slide 41: Partnership related deferred revenues
2011 detailed financial performance Partnership related deferred revenues Total Milestones cashed-in and not yet recognized as revenues (16.9)% Main evolutions over the period 215.9 199.0 (9.2)% 2010 in million euros Total recognition of the remaining taspoglutide deferred income (€48.7m) from 190.6
Slide 42: Cash flow statement
2011 detailed financial performance Cash flow statement in million euros 2010 A 2011 A Cash Flow before change in working capital 248.5 207.1 Deferred revenues from partnerships (Inspiration 35.5 -. license) (Increase)/ Decrease in working capital (30.1) (31.6) Net cash flow generated by operating a
Slide 43: In summary
2011 detailed financial performance In summary Specialty Care sales: +8.0%(1), resilient primary care sales in 2011 Strong international drug sales, up 9.9% in 2011 Major impacts from non recurring elements, mainly impairments & one-off costs: -€124.9m overall on EBIT Good operational performance wi