Ipsen Sa · EURONEXT:IPN
Ipsen Sa — H1 2016 Earnings Presentation
34 slides from Ipsen Sa's earnings presentation, Jul 28, 2016
Slide 1: Half Year 2016 Financial Results
Ipsen Half Year 2016 Financial Results 28 July 2016 IPSEN pour nom de la société - 07/04/2011 / page 1
Slide 2: Disclaimer and Safe Harbor
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: Half year 2016 overview
Half year 2016 overview Marc de Garidel Chairman
Slide 4: Agenda
Agenda 1 H1 2016 overview Marc de Garidel Chairman 2 H1 2016 financial performance Aymeric Le Chatelier EVP CFO 3 R&D update Claude Bertrand EVP R&D, CSO 4 Conclusion David Meek CEO 4 Ipsen – Half Year 2016 Financial Results 4 Goldman Sachs 35th Annual Global Healthcare Conference – June 2014
Slide 5: H1 2016 highlights: Accelerated transformation
H1 2016 highlights: Accelerated transformation Solid operating performance driven by Specialty Care sales growth and in particular Somatuline® in the US In-licensing of Cabometyx™ to strengthen oncology portfolio, recent positive CHMP opinion & launch preparation in Europe New corporate governance m
Slide 6: Ipsen: Global specialty pharma company; US now top affiliate
Ipsen: Global specialty pharma company; US now top affiliate H1 2016 sales by segment H1 2016 sales by geography Top 5 affiliates EM 1 US Primary Care EU 20% 33% France G5 38% 2 3 China 80% Specialty 15% Care 14% North 4 Germany America ROW 5 Italy Specialty care increasing as a percentage of overal
Slide 7: US: Continued momentum and high potential for growth
US: Continued momentum and high potential for growth US affiliate sales Ipsen reported sales ($m) ▪ US represents 15% of 70 global sales 60 ▪ Additional growth drivers for 50 continued momentum 40 30 ▪ Strong leverageable 20 infrastructure in place 10 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2014 2014 2014 2
Slide 8: H1 2016 financial highlights: Solid sales & margin improvement
H1 2016 financial highlights: Solid sales & margin improvement Net sales €763.8 million sales growth +9.7%* Specialty Care Primary Care sales growth sales growth +14.3%* - 5.9%* Core Operating margin 24.7% +1.2 pt improvement 8 Ipsen – Half Year 2016 Financial Results * Growth at constant currency 8
Slide 9: Executing on base business growth strategy
Executing on base business growth strategy Specialty Care Leadership ▪ Develop Somatuline® in new indications and delivery devices in NET ▪ Expand portfolio with telotristat etiprate and 177Lu-OPS201/ 68Ga-OPS202 Maximize ▪ Launch Dysport® in new indications (PLL, ALL) and formulation Dysport® poten
Slide 10: Cabometyx EU launch: Positive momentum on a significant market opportunity
Cabometyx™ EU launch: Positive momentum on a significant market opportunity Hiring of quality staff in key Accelerated functions review in Europe Treatment Significant RCC Ensure Positive CHMP paradigm shift 2L market appropriate opinion: from PFS benefit opportunity medical support July 21, 2016 on
Slide 11: H1 2016 financial performance
H1 2016 financial performance Aymeric Le Chatelier EVP CFO
Slide 12: H1 2016 sales growth driven by specialty care business
H1 2016 sales growth driven by specialty care business Drug sales – H1 2016 in million euros – % excluding foreign exchange impact ® Somatuline +37.0% 255 Group sales ® €763.8m Decapeptyl +1.1% 168 +9.7% Specialty Care ® Dysport +4.3% 140 ® Nutropin (3.6%) 30 Specialty Care ® €613.5m Increlex 11 +9.
Slide 13: Somatuline: strong performance globally driving oncology franchise growth
Somatuline®: strong performance globally driving oncology franchise growth Ipsen reported 3-year sales & growth* H1 highlights sales (€m) 300 €255m +37.0% €188m • US: Increasing penetration of centers, 200 +29.1% 16% ROW €139m 12% new patients and patients transitioning +14.6% EM from prior therapy
Slide 14: Dysport driven by solid market growth
Dysport® driven by solid market growth H1 highlights Timeline of US launches Initial Cervical AUL PLL launch spasticity • Launch of AUL spasticity (US) (UK) dystonia (US) spasticity (US) (US) • Launch readiness for PLL spasticity (US) 1991 April July August 2009 2015 2016 • Continued strength of aes
Slide 15: Decapeptyl: strong performance in Europe offset by inventory trends in the Middle East
Decapeptyl®: strong performance in Europe offset by inventory trends in the Middle East Ipsen reported 3-year sales & growth* H1 highlights sales (€m) 200 • Increased commercial focus in China €169m €168m with dedicated sales force per €161m +0.8% +1.1% +10.3% indication 160 10% • Progress on potent
Slide 16: Primary care impacted by Smecta and Tanakan slowdown
Primary care impacted by Smecta® and Tanakan® slowdown Ipsen reported 3-year sales & growth* H1 highlights sales (€m) 200 • Accelerated transition in China of the Primary care model to OTx 180 €166m (6.9)% €165m €150m • Portfolio expansion with distribution 160 (3.7)% (5.9)% agreement for probiotic
Slide 17: P&L - From sales to Core Operating Income
P&L - From sales to Core Operating Income % Change at In million euros H1 2016 H1 2015 Change Change constant FX Net sales 763.8 713.9 +49.9 +7.0% +9.7% Other revenues 42.8 38.0 +4.8 +12.4% Revenue 806.6 751.9 +54.7 +7.3% Cost of goods sold (172.2) (168.3) -3.9 +2.3% Selling expenses (283.2) (259.9)
Slide 18: Exposure to foreign currencies
Exposure to foreign currencies H1 2016 sales exposure by currency Evolution of major currencies vs. EUR €763.8 million Average rates change (June 2016 vs. June 2015) Other(1) … GBP 16% 0.0% 5% EUR -5.1% -6.1% CNY 9% 50% -21.2% -25.4% 20% USD USD CNY GBP RUB BRL Foreign currency policy ▪ H1 2016 sale
Slide 19: Core Operating margin evolution
Core Operating margin evolution Business performance Cabometyx™ H1 2016 FX H1 2015 COI margin(1) COI margin(1) +3.2 pts -0.6 pts -1.4 pts 23.5% 24.7% H1 2015 H1 2016 H1 2016 margin expansion driven by Specialty care growth and cost-monitoring efforts (1) In percentage of sales; 19 Ipsen – Half Year
Slide 20: P&L - From Core Operating Income to EPS
P&L - From Core Operating Income to EPS % In million euros H1 2016 H1 2015 Change Change Net sales 763.8 713.9 +49.9 +7.0% Core Operating Income 188.8 167.6 +21.2 +12.6% Core Operating margin 24.7% 23.5% +1.2 pt Other non core (5.5) (6.6) +1.1 Restructuring costs (0.4) (0.7) +0.3 Impairment gain / (
Slide 21: Strong cash flow generation
Strong cash flow generation In million euros Free cash flow: €74m EBITDA Change in & non working cash items capital -35 Capex Other P&L -35 Restructuring cash impact +186 -10 -32 Dividends Opening -70 BD & net cash* milestones -173 187 Closing net cash* 17 Dec 2015 June 2016 Cash flow of €74 million
Slide 22: 2016 financial objectives
2016 financial objectives Raised Specialty Care sales Previous New Growth >+10.0% Growth >+12.0% At constant currency Primary Care sales Reaffirmed Slight growth, year-on-year At constant currency Core Operating margin Reaffirmed Around 21% Assuming: • higher investments required to prepare the comm
Slide 23: Key financial takeaways
Key financial takeaways Group sales up 9.7% at constant currency Strong Core Operating Income margin of 24.7%(1) Consolidated net profit of €133.3m, up 47.4% year-on-year Fully diluted core EPS of €1.74, up 16.0% year-on-year Successful issuance of inaugural €300 million 7-year Notes 23 Ipsen – Half
Slide 24: R&D update
R&D update Claude Bertrand EVP R&D, CSO
Slide 25: H1 2016: Pipeline milestones
H1 2016: Pipeline milestones Oncology Neurosciences Cabometyx™ Dysport® • In-licensing rights (ex-US, Canada, Japan) • Regulatory submission for ALL (EU) • Positive OS results in 2L RCC (METEOR) • Regulatory submission for PLL (EU) • Positive top-line results in 1L RCC (CABOSUN) • Regulatory approva
Slide 26: Cabometyx targets oncogenic drivers of RCC through multi-kinase inhibitory effect
Cabometyx™ targets oncogenic drivers of RCC through multi-kinase inhibitory effect 26 Ipsen – Half Year 2016 Financial Results Presented By Toni Choueiri at 2016 ASCO Annual Meeting 26 Goldman Sachs 35th Annual Global Healthcare Conference – June 2014
Slide 27: Cabometyx: Aim to become standard of care in 2L RCC
Cabometyx™: Aim to become standard of care in 2L RCC First therapy in 2L RCC PFS: 7.4 months (+3.6 months*) to show clinically OS: 21.4 months (+4.9 months*) meaningful improvement in 3 key metrics(1): ORR: 24% Risk group Subgroup analysis indicates benefit Type or duration of prior therapy regardle
Slide 28: Cabometyx: 2L RCC key indication with potential for future indications
Cabometyx™: 2L RCC key indication with potential for future indications Additional indications Hepatocellular carcinoma Renal cell carcinoma Additional 28 trials Phase 3 in 2L ongoing Renal cell carcinoma 60,000 pts Phase 2 in 1L (EU) CABOSUN Filed in 2L Medullary thyroid cancer 15,000 – 20,000 pts
Slide 29: Dysport: development opportunities to expand reach
Dysport®: development opportunities to expand reach Potentially the first and only product to 1 be approved in pediatric spasticity (US) PLL PDUFA date (US) on July 30th Additional indications (US) 2 ALL spasticity – To be filed 2016 PUL spasticity – Phase 3 2020 Liquid formulation 3 Cervical dyston
Slide 30: Upcoming key news flow
Upcoming key news flow H2 2016 2017 Oncology Cabometyx™ Regulatory decision CELESTIAL Phase 3 results 2L RCC (EU) HCC CABOSUN Phase 2 results 1L RCC Somatuline® Filing for symptom control GET NET (US) Telotristat etiprate NET carcinoid syndrome Regulatory decision (EU) submission (EU) NET carcinoid
Slide 31: Conclusion
Conclusion David Meek CEO L.
Slide 32: New corporate governance model: David Meek joins as CEO
New corporate governance model David Meek joins as CEO ▪ Joined Ipsen on July 18, 2016, based at headquarters in Boulogne-Billancourt ▪ Over 25 years of experience in the pharmaceutical & biotech industry, most recently leading the oncology division of Baxalta ▪ International and BD experience throu
Slide 33: 2016 roadmap
2016 roadmap Position Somatuline® as a leader in NET and secure Dysport® spasticity launch Implement new Primary Care OTx model, notably in China Prepare for the imminent launch of Cabometyx™ for the treatment of RCC in Europe Continue business development to replenish pipeline and complement market
Slide 34: Thank you
Thank you