Acino ? Delivering Health

Acino – Delivering Health
Annual Results 2011
Peter Burema, CEO
Robert Schmid, CFO (until end of February 2012)
Dr. Jean-Daniel Bonny, Head Group R&D
Acino Holding Ltd.
Erlenstrasse 1 | CH-4058 Basle | www.acino-pharma.com
Phone +41 61 338 60 00 | Fax +41 61 338 60 80

Performance 2011
Zurich, March 9, 2012
Robert Schmid, CFO
Acino Holding Ltd.
Erlenstrasse 1 | CH-4058 Basle | www.acino-pharma.com
Phone +41 61 338 60 00 | Fax +41 61 338 60 80

2011 operating performance
EUR
million
130
110
90
70
50
30
10
‐10
Revenue
134.9
Parenteral
33.5
Peroral
101.4
Goods / change in
inventory
(48.3)
Employee benefits
(41.4)
Other
OPEX
(26.7)
Capitalized
work performed
5.2
Key Financials
(EUR million)
2011 2010 Change
Revenue 134.9 127.5 6%
EBITDA
% of revenue
currency adjusted
EBIT
% of revenue
Net profit
EPS (diluted)
Other
income
1.8
EBITDA
25.7
19%
23%
6.7
5%
5.7
1.80
18.0
14%
(9.0)
(7%)
4.5
1.42
(0.9)
43%
175%
27%
Depreciation
& Amortization 0.8 Financial result
(1.2) Tax
(0.4) Associates
(19.0)
EBIT
25.7 6.7
Net profit
5.7
3

2011 cash flow
EUR
million
12
7
2
‐3
‐8
‐13
‐18
‐23
Change in
working capital
Cash
flow
(11.5)
20.4
CF from
operating
activities
8.9
Payment
PPE
(20.5)
(11.2)
(EUR million) 2011 2010 Change
Cash flow (11.5) 46.0 (125%)
Changes in working capital 20.4 (25.6)
Cash flow from operations 8.9 20.4 (56%)
Cash flow from investing (31.7) (25.7) 23%
Cash flow from financing 6.6 (7.1)
Net change in cash (16.1) (12.1)
Free cash flow (22.8) (5.2)
Payment
intangibles &
Financial assets
Proposal to the AGM: Distribution of CHF 1.00 / share
(out of legal reserve exempt from withholding tax)
Financing
activities
6.6
(0.0)
Forex
effects
(16.1)
Net change
in cash
(22.8)
Free cash
flow
4

Balance sheet
EUR
million
31.12.2011
EUR 330.4 million
4.4
53.8
18.8
79.9
2011
71.0
257.4
EQUITY RATIO
• Maintained at high 78%
Deferred revenues
Deferred tax liabilities
Other liabilities
Current financial liabilities
71.0
102.5
Assets Liabilities &
Shareholders‘
equity
Shareholders’ equity
Cash and cash equivalents
Working capital
Other non-current assets
Other intangible assets
Goodwill
Property, plant & equipment
89.9
Assets
31.12.2010
EUR 344.8 million
20.5
13.3
26.2
13.0
ASSETS
• Higher PPE: high investments
Miesbach
• Lower working capital: agreement
concerning claim clopidogrel
LIABILITIES AND SHAREHOLDERS’
EQUITY
•Lower provisions: agreement
20.5
68.4
15.9
27.5
12.9
51.5
0.0
concerning claim clopidogrel
•New current financial liabilities
79.1
252.9
Liabilities &
Shareholders‘
equity
5

Break-down of Acino’s revenue
150
135
120
105
90
75
60
45
30
15
Proprietary products &
contract manufacturing
Total product sales in EUR million
0
2004 2005 2006 2007 2008 2009 2010 2011
Peroral manufactured in Switzerland
Peroral manufactured in India
Contract manufacturing Peroral
Parenteral
Revenue of operating segments in 2011:
– Renewed growth of Peroral +12%
– Weaker period for Parenteral -9%
Continued effort to optimize product mix
Measures in manufacturing:
– Focus on newer, higher margin
products (example MUPS)
– Discontinuation of betalactame
production by the end of 2013
– Aim to qualify Miesbach and
Liesberg sites for FDA regulated
markets
Future: major part of revenue and profit
growth to derive from Operating
Segment Parenteral
6

R&D and development pipeline
Zurich, March 9, 2012
Dr. Jean-Daniel Bonny, Head Group R&D
Acino Holding Ltd.
Erlenstrasse 1 | CH-4058 Basle | www.acino-pharma.com
Phone +41 61 338 60 00 | Fax +41 61 338 60 80

R&D organization
Very positive impact of acquisition in the area of oral
dosage forms:
By early 2013: Move from rented labs in Basle
(WRO/Rosental) to own R&D building in Aesch
Savings in rental costs (about EUR 500k from 2013
onwards) and in capital expenditure for equipment
Additional R&D projects enrich Acino‘s pipeline
Expansion of expertise and know-how in development
Broadening of our technology platforms:
Microtablets as a complementary addition to pellets.
Own FDA-approved production facility in Aesch lowers
entry barrier to develop projects for US
Acino
Basel
13,3 km
Mepha
Aesch
8

In-house technologies
Complex, solid oral forms
Locations Liesberg and Aesch,
Switzerland
Focus on MUPS (Multiple Unit Pellet
System)
Both in-house development projects
as well as customer projects
Oxycodone matrix to be submitted in
2012
New: Microtablets
9

In-house technologies
Transdermal systems
Location Miesbach, Germany
Fentanyl & buprenorphine on the market, new formulations with USPs in
development
Rivastigmine EU submitted 2011, US submission targeted 2012
Development and production of a contraceptive patch for Bayer Healthcare
Pharmaceuticals
Additional customer projects under negotiation
10

In-house technologies
Bio-degradable drug implants
Location Miesbach, Germany
Goserelin approved in several B2C
markets, launch in Europe targeted 2013
Leuprorelin launch targeted for 2013
Customer projects are being evaluated
Oral dispersibles
Location Liesberg , Switzerland (and
Miesbach, Germany)
Technology for tablets (ODTs), films
(ODFs) and pellets in stickpacks
Project candidates under evaluation
11

Acino’s development pipeline
Preclinical
development
Oral
Depression
Oral
Iron overload, Thalassemia
TDS
Parkinson’s disease
TDS, Fentanyl 3-day (low load)
EU & US, Pain
Implant, Goserelin Japan
Prostate / Mamma carcinoma
(updated March 2012)
5
Clinical
Phase I / Pilot
Oral
Schizophrenia
Oral
Pain
TDS
Pain
TDS
Alzheimer’s disease
Oral*
CNS/Pain
Oral*
Cancer
Oral dispersible*
Urology
* Projects taken over from Mepha. Several additional projects
in evaluation.
Undisclosed:
Additional customer projects in different stages of development.
Clinical
Phase III / Pivotal
Oral
Schizophrenia
Oxycodone Matrix
Pain
TDS, Rivastigmine USA
Alzheimer’s disease
I.V. injection, Iclaprim
Infection
TDS, Contraceptive; customer
project Bayer Healthcare
Legend:
Oral
Oral
dispersible
TDS Implant
In registration
7 4 4
TDS, Rivastigmine EU
Alzheimer’s disease
Implant, Goserelin 3-month
Prostate carcinoma
Implant, Leuprorelin 1-month
Prostate carcinoma
Implant, Leuprorelin 3-month
Prostate carcinoma
20 Number of Acino own projects by stage
NCE (new
chemical entity)
Customer
project
12

From 2013 onwards 2-3 projects per year
are expected to get registration approval
Expected launch date
2012 2013 2014 2015 2016 2017
Project
TDS, rivastigmine EU
Implant, leuprorelin 1-month
Implant, leuprorelin 3-month
Implant, goserelin 3-month
Oxycodone matrix
TDS, rivastigmine USA
Project, x0040
Project, x1140
Project, x0410
TDS, fentanyl 3D EU & USA
Project, x1180
Project, x1100
Project, x1120
Implant, goserelin Japan
Project, x0230
Project, x1450
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
* Former Mepha projects are not included yet
This slide only serves for information purposes and does not represent an offer from Acino. Acino respects the valid property rights of third parties, therefore developments and
products are only offered under the condition that they are not in violation of third-party rights or only in countries where such rights do not apply.
13

Business strategies & outlook
Zurich, March 9, 2012
Peter Burema, CEO Acino Group
Acino Holding Ltd.
Erlenstrasse 1 | CH-4058 Basle | www.acino-pharma.com
Phone +41 61 338 60 00 | Fax +41 61 338 60 80

“Old” Acino: highly dependent on four
customers and four markets
Top 4 customers: 87%
Product sales 2010
Split by customer / country
40%
Top 4 markets: 60%
3%
5%
10%
Germany France Netherlands UK Rest
(Product sales in end user markets, Acino estimate)
42%
15

Decision 2010:
Growth along three dimensions
Broadening of the customer base with generics companies and researchdriven
pharmaceutical companies
Marketing under the Acino Switzerland-Logo: in emerging markets (Middle
East, North Africa, Subsaharan-Africa, Latin America, CIS and Asia)
Development focused on promising niche products and complex drug
delivery formulations
Targeted M&A activities as complementary measure
16

3-pillar business model of Acino
Accelerated growth
Growth through acquisitions: targeted M&A activities
Organic growth: high investments, exploit synergies & untapped potential
B2B/Outlicensing
Acino
Brand Marketing
Drug Delivery
Solutions
17

What changes after the
Mepha/Cephalon Acquisition?
18

The acquisition includes:
The marketing authorizations for a portfolio of 28 products from Mepha and
the former Cephalon for Middle East, Africa, Latin America & Asia
Direct presence in 60 countries
The Mepha/Cephalon product and umbrellar brands for these regions
All intellectual property for these products/brands
All existing contracts with suppliers and distributors
The inventory for these markets
Part of the Mepha R&D pipeline
The manufacturing, R&D and corporate office facilities in Aesch
Manufacturing contracts with TEVA for former intercompany sales
19

The manufacturing, R&D and
corporate office facilities in Aesch
20

Acquired business perfectly fits Acino
In line with Acino’s 3-pillar growth strategy
Identical approach with regard to branded drugs/“branded generics”
“Swissness” efficiently promoted in emerging markets:
– Swiss/EU quality standards a differentiating feature
– Preference for drugs manufactured in Switzerland/EU
Portfolio for emerging markets:
– Acino very active in the registration of products from own development
– Product portfolios complement each other ideally
Synergies in the commerical infrastructure; highly motivated Mepha /
Cephalon sales team
Expansion of R&D know-how: products with sophisticated galenical forms,
complementary to Acino’s own expertise
21

Share price development
(last 6 months)
120
110
100
90
80
70
60
14 Oct 2011
Acino to acquire
Mepha / Cephalon's
Middle East and
African business
19 Dec 2011
Acino and Teva sign deal to
complete acquisition of
Mepha's production and R&D
facilities and MENA / LATAM /
Asian businesses
ACIN
SPI (adjusted)
22

The “new” Acino: broad customer base
and activities in >130 countries
23

Acino’s revenue nearly doubling
after acquisition
EUR
million
Revenue development
2004-2011A: actual sales
2011E: with full-year sales of acquired
Mepha/Cephalon business
2012E: outlook 2012
Mepha/Cephalon
2011E EUR 105 million
Outlook: total revenue
2012E EUR 240-260 million
24

Geographic break-down of revenue
Main countries 2010
Main countries/regions 2011
plus acquired business
(pro forma)
(Product sales in end user markets, Acino estimate) (Product sales in end user markets, Acino estimate)
25

Cephalon/Mepha portfolio
Sales contribution by key products
26

Our past and future strengths
Expansion of our B2B/outlicensing business in existing and new markets
Expansion of our technology platforms in Liesberg, Miesbach and Aesch
New customer acquisition thanks to our expertise in the manufacturing of
pellets/microtablets as well as patches and implants
Excellent starting position with high Swiss/EU quality standards
Effective and goal-oriented product development
Contract manufacturing of novel higher margin products (NCE, new
chemical entity)
27

Mepha business integration
progress
2012 2013 2014
Preparatory work for integration active since January 2012
Closing February 17, 2012
Combined global commercial structure operational since day 1
New R&D structure (including regulatory) established
Combined technical operations structures by June 2012
Finance, HR and IT systems will run in parallel until H2 2012
Financial reporting will be adapted to reflect the 3-pillar strategy
Basel activities will be moved to Aesch by end 2012
Mepha main warehouse activities transferred to Acino
premises by January 2013
Mepha/Cephalon name in the
markets to be changed to Acino
over a 2 year period
28

Key Facts: Acino TODAY
Fourth largest listed Swiss pharmaceutical company
(Acino Holding Ltd., domiciled in Basle, listed at the SIX Swiss Exchange: ACIN)
7 sites worldwide: 4x Switzerland (Basle, 2x Aesch, Liesberg), 1x Miesbach
(DE), 1x Paris (FR), 1x Panama (LATAM)
About 870 employees from over 40 nations
46 products for own brand marketing in various international territories
Marketing partnerships in over 130 countries
– Own brand marketing in over 80 countries (~380 marketing & sales staff)
– B2B/Outlicensing in more than 50 additional countries
29

Acino – our shared vision
We are successful on a worldwide basis and a benchmark for
quality and innovative conception of pharmaceuticals – and
proud of our commitment to enhance quality of life.
30

Acino – Delivering Health
Thank you for
your attention
31