Teva Pharmaceutical Industries Limited · TASE:TEVA
Teva Pharmaceutical Industries — UBS Global Specialty Pharmaceuticals Conference 2010
28 slides from Teva Pharmaceutical Industries's conference presentation, Jun 2, 2010
Slide 1: UBS Global Specialty Pharmaceuticals Conference
1 UBS Global Specialty Pharmaceuticals Conference Eyal Desheh, Chief Financial Officer London, June 2, 2010
Slide 2: Forward looking statements
Forward looking statements 2 TODAY’S PRESENTATION CONTAINS FORWARD-LOOKING STATEMENTS, WHICH EXPRESS THE CURRENT BELIEFS AND EXPECTATIONS OF MANAGEMENT. SUCH STATEMENTS INVOLVE A NUMBER OF KNOWN AND UNKNOWN RISKS AND UNCERTAINTIES THAT COULD CAUSE OUR FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS TO D
Slide 3: Q1 2010 Highlights; 2015 Strategy Update; ratiopharm Acquisition
3 Q1 2010 HIGHLIGHTS 2015 STRATEGY UPDATE; RATIOPHARM ACQUISITION
Slide 4: Fundamental questions/topics: Q1 2010 highlights
2 fundamental questions/topics 4 Q1 2010 HIGHLIGHTS 2015 STRATEGY UPDATE; RATIOPHARM ACQISITION
Slide 5: Q1 2010 – a strong start for the year
Q1 2010 – a strong start for the year 5 Strong Strong organic growth – 16% QoQ Financial Record GAAP operating income, net income and EPS Results Balanced Record sales in the U.S.; 20% growth 2008: an extraordinary Business year Europe and International sales – 10% growth Model Record sales for Copa
Slide 6: Q1 2010 – strong financial results
Q1 2010 – strong financial results 6 Q1/09* Q1/10* Change Sales ($m) 3,147 3,653 +16% Operating income ($m) 826 1,002 +21% Net income ($m) 634 830 +31% EPS ($) 0.71 0.91 +28% Cash flow from operations ($m) 733 886 +21% Gross margin (%) 58.4 58.4 Operating margin (%) 26.2 27.4 Net margin (%) 20.1 22.
Slide 7: The most valuable generic pipeline
The most valuable generic pipeline 7 U.S., April 26, 2010 $113bn $55bn brand sales brand sales
Slide 8: 2010 guidance
2010 guidance 8 Net sales around $16 billion Non-GAAP EPS between $4.40 – $4.60 2H 2010 stronger than 1H 2010
Slide 9: Fundamental questions/topics: 2015 strategy update
2 Fundamental questions/topics 9 2009 HIGHLIGHTS 2015 STRATEGY UPDATE; RATIOPHARM ACQUISITION
Slide 10: Targets for 2015
Targets for 2015 10 Revenues $31 bn Net income $6.8 bn Net profitability 22%
Slide 11: Maintaining Teva's mix of generics & branded
Maintaining Teva’s mix of generics & branded 11 $31bn ~30% $13.9bn Branded 30% ~70% Generics 70% 2009 2015
Slide 12: Diversity across business units, products, geographies
Balance between high-growth generics & 12 higher-margin branded business ~30% branded High ~70% Higher GROWTH generic MARGINS Diversity across: BUSINESS UNITS, PRODUCTS, GEOGRAPHIES
Slide 13: Growth through market share
Growth through market share 13 2015 sales 2009-2015 targets CAGR North America $15bn 9.5% Europe $9bn 18.6% International $7bn 23.2% Total $31bn 14.3%
Slide 14: Extending U.S. leadership to 35% market share
Extending U.S. leadership to 35% market 14 share Number of prescriptions, bn 3.2 3.0 2.8 2.5 Total 4% market CAGR 1.1 0.9 0.6 14% Teva 0.4 CAGR 2007 2009 2012 2015 Teva market 18% 22% 30% 35% share
Slide 15: How we will get there: in-line products
How we will get there: in-line products 15 Increase market share Increase margins Acquisitions New Product Life Cycle Launches Management 35% Flawless Low Cost Execution Manufacturing Capacity leverage
Slide 16: Europe is an important growth engine
Europe is an important growth engine 16 2015 sales 2009-2015 our European goal targets CAGR North $15bn 9.5% America Europe $9bn 18.6% International $7bn 23.2% Total $31bn 14.3%
Slide 17: ratiopharm – a generics leader
ratiopharm – a generics leader 17 Established in 1881 Germany #2 in generics $2.3 billion (€1.6bn) sales in 2009 Direct presence in 26 countries Portfolio of over 500 molecules in 10,000 different presentations in a wide range of dosage forms Over 5,000 employees worldwide
Slide 18: Strategic fit with significant value creation
Strategic fit with significant value creation 18 9 Indisputable leadership, #1 in Europe 9 #2 in Germany 9 Balanced across countries, customers and products 9 Strong operational platform
Slide 19: Becoming the European market leader
Becoming the European market leader 19 UK No.1 • Strong Pan-European footprint Italy No.1 • #1 in 10 EU countries Spain No.1 • Top 3 in additional 7 EU countries Netherlands No.1 Hungary No.1 Germany No. 2 Outstanding platform for future growth Czech Republic No. 2 France No. 3 Poland No. 3
Slide 20: The German generics market
The German generics market 20 % of generics market value, 2009 Largest market in Europe, #2 in the world 35% Germany 65% Rest of Europe Market size of ~$8.8B* gross sales * Retail, Hospital and OTC; Fx 1.371
Slide 21: The German generics market (non-tender)
The German generics market 21 % of generics market value, 2009 Largest market in Europe, #2 in the world 25% Tenders Market size of ~$8.8B* gross sales 75% Non-tender Non-tender segment still larger than the #2 market, France * Retail, Hospital and OTC; Fx 1.371
Slide 22: Other strategic markets
Other strategic markets 22 • Population 58M • New combination will become the undisputed market leader Italy • Obtain full pharmacy coverage • Leverage relationships with pharmacies and regional constituents • Population 40M • New combined entity will be the clear #1 Spain • Leverage all market segm
Slide 23: Compelling value creation
Compelling value creation 23 + Excellent strategic fit Extends global market leadership Positions Teva as the #1 generics company in EU Attractive economics Acquisition supports Teva’s 2015 growth strategy
Slide 24: International markets – focus on high priority markets
International markets – focus on high priority 24 markets ~75% of growth Priority Growth Markets 8 countries Established 52 countries Growth Markets
Slide 25: The Teva advantage crosses all models
The Teva advantage crosses all models 25 Multiple Generics Models Teva’s Advantage GGx • >1,000 molecules • Local market knowledge • Government BGx Hospitals relationships • Speed and agility • High quality products • Low cost manufacturing Tenders
Slide 26: Biosimilars: the future
Biosimilars: the future 26 2008 worldwide sales of biologics*, $bn Strategic Alliances 23 115 Lonza 39 76 14 Teva’s Bio infrastructure Sicor, IBR&D, Patents Patents Patents Biosimilar Biosimilar CoGenesys expired expiring expiring opportunity - opportunity - before 2010 2010-2015 2016-2020 current b
Slide 27: Closing remarks
Closing remarks 27 Continued strong and profitable sales and EPS growth; maintaining high profitability Solid financials with strong cash generation Balanced business model – Teva in 2015 will be more diversified and less dependent on a single product or geography
Slide 28: Teva Pharmaceutical Industries Ltd
tA TEVA PHARMACEUTICAL INDUSTRIES LTD,
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