Transcript stada - Moodle Lille 2

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Tuesday, December 16th 2014 – M2 AREIPS Lille 2
» COMPANY HISTORY
» ID
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Key Figures
Worldwide presence
Organization chart
STADA’s activities
EG Labo
Employees
» FINANCIAL ANALYSIS
» STADA’S STRATEGY
» OUTLOOKS
» SWOT
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» COMPANY HISTORY
» ID
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Key Figures
Worldwide presence
Organization chart
STADA’s activities
EG Labo
Employees
» FINANCIAL ANALYSIS
» STADA’S STRATEGY
» OUTLOOKS
» SWOT
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» € 2,01 Billion
» 29 countries
˃ 24 European countries
˃ 5 Asian countries
» Represented by 47 subsidiaries
» ⅔ of sales are generics
» 5th worldwide leader in generics
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https://www.stada.com/company/about-stada/overview.html
≈ +10%
2500
2014
2000
2082
1838
1627
1715
M€
1500
1000
500
0
2010
2011
2012
Years
http://www.zonebourse.com/STADA-ARZNEIMITTEL-AG
2013
2014 e
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3%
2%
Branded Products
35%
Generics
Commercial Business
61%
Group holdings/Other
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https://www.stada.com/company/about-stada/overview.html
• In 2009
Teva
Sandoz
Mylan
18%
Watson
Ratiopharm
10%
50%
Stada
6%
6%
2%
2%
BCC Research
3%
Actavis
Ranabxy
Autres
3%
6th
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• In 2013
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» COMPANY HISTORY
» ID
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Key Figures
Worldwide presence
Organization chart
STADA’s activities
EG Labo
Employees
» FINANCIAL ANALYSIS
» STADA’S STRATEGY
» OUTLOOKS
» SWOT
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Parent
company
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Parent
company
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» COMPANY HISTORY
» ID
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Key Figures
Worldwide presence
Organization chart
STADA’s activities
EG Labo
Employees
» FINANCIAL ANALYSIS
» STADA’S STRATEGY
» OUTLOOKS
» SWOT
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SUPERVISORY BOARD
- 9 members
• 6 represented shareholders
• 3 represented employees
- Chairman
Dr Martin ABEND
- Deputy chairman
Manfred KRUEGER
EXECUTIVE BOARD
Hartmut RETZLAFF
Chairman of the EB since 1994
EB member since 1993
Helmut KRAFT
Chief Financial Officer
(EB member since 2010)
ADVISORY BOARD
- Chairman : Dr Thomas MEYER
- Deputy chairman: Dr Franck-R. LEU
- 9 other members
Dr Matthias WIEDENFELS
Chief Business Development
& Central Services Officer
EB member since 2013
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» COMPANY HISTORY
» ID
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Key Figures
Worldwide presence
Organization chart
STADA’s activities
EG Labo
Employees
+ Generics
+ Branded Products
+ Biosimilars
» FINANCIAL ANALYSIS
» STADA’S STRATEGY
» OUTLOOKS
» SWOT
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» Two Core segments
˃ Generics
: 61 % = 1127 M€ of GS in 2013
˃ Branded products : 35 % = 647 M€ of GS in 2013
» Generic company
˃ Pharmaceutical company that manufactures and markets generics.
˃ Focus on products with off-patent active pharmaceutical ingredients
on the pharmaceutical market.
» STADA: Major therapeutic areas for generics:
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˃
˃
˃
Cardiovascular diseases
Gastro intestinal diseases
Inflammatory diseases
….
www.stada.com
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21,70%
35,10%
Cardiovascular
Dermatology
0,20%
Genito-urinary/Hormonal Drugs
Respiratory
Rheumatology
4,30%
Diabetes
Oncology
4,50%
6,40%
3,40%
Gastro-intestinal/HIV/Immunology
8,30%
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http://fr.slideshare.net/AiswariyaChidambaram/pharma-tech-2013-aiswariya-chidambaram-fs
Active ingredient
Indication group
Phospholipide
referred hepatobiliary
and laxative osmotic
Omeprazole
IPP
Diclofenac
AINS
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2012:
2013:
7,3 % = 82 M€
6,9 % = 78 M€
Omeprazole
Diclofenac
Sales 2012
Sales 2013
Phospholipide
0
www.stada.com
5
10
15
20
25
30
35
In M€
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» COMPANY HISTORY
» ID
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Key Figures
Worldwide presence
Organization chart
STADA’s activities
EG Labo
Employees
+ Generics
+ Branded Products
+ Biosimilars
» FINANCIAL ANALYSIS
» STADA’S STRATEGY
» OUTLOOKS
» SWOT
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Active ingredient
Apo-Go (RX)
Indication group
Antiparkinson
(DCI:Apomorphine
hydrochloride)
Grippostad (OTC)
Cold medecine
(DCI: Paracetamol+Vit C+Cafein)
Chondroxid (OTC)
(DCI: Chondroïtine sulfate)
For the treatment of
degenerative joint diseases
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2012:
2013:
15,7 % = 101.7 M€
16,4 % = 105.6 M€
Chondroxid
Grippostad
Sales 2012
Sales 2013
Apo-Go
0
www.stada.com
5 10 15 20 25
30 35 40 45 50 In M€
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APO - go®
» PA : Apomorphine hydrochloride
» Parkinson’s disease
• Short-acting (~1hr)
• To help prevent or reverse "off" periods
• Patients with gaps in control from their oral medications
The "off" period may
consist of :
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APO - go ®
» PA : Apomorphine hydrochloride
» Parkinson’s disease
• Used for almost 20 years
• 2nd-line dopamine agonist in Parkinson's
• 14-16 hours a day
• Small and discreet
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Thornton & Ross
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In Aug. 2013
Net purchase price approx. 226 M€
5th OTC pharmacy business in the UK
Indication: cold, pain, dermatology
Employs approximately 425 people
Aqualor®
˃ In Feb. 2014
˃ Purchase price:131 M €
˃ 10 (OTC) BP presentations based on
seawater (sprays and drops)
˃ In 2012 net sales generated
Aqualor® products in Russia: 28 M€.
˃ Sales contribution in march 2014: 3.9
M€
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www.stada.com
» COMPANY HISTORY
» ID
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Key Figures
Worldwide presence
Organization chart
STADA’s activities
EG Labo
Employees
+ Generics
+ Branded Products
+ Biosimilars
» FINANCIAL ANALYSIS
» STADA’S STRATEGY
» OUTLOOKS
» SWOT
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Grastofil®
Filgrastim
Epo-zeta
2008
2011
Rituximab
Trastuzumab
2013
2014
Teriparatide
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» In 2001:
BIOGENERICS Arzneimittel AG (founded by STADA) mandated DSM Biologics
(subsidiary of the Dutch DSM Group, having facilities in Montreal, Canada
and Groningen, The Netherlands) to develop four biosimilars:
˃
˃
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Erythropoetin (Epo),
Filgrastim,
Interferon a2b
Interferon b1a
Global Volume
Market in EU:
 1 billion €
(2001)
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www.stada.com
» Epo-zeta: developed and manufactured by DSM Biologics
» BIOCEUTICALS (subsidiary of STADA since 2000)
˃ Pursued Epo-zeta project
˃ The worldwide exclusive distribution rights for Epo-zeta
» In 2006:
˃ Hospira, Inc (US) via license agreements granted by BIOCEUTICALS
Marketed Epo-zeta in EU (except Germany), USA and Canada / Retacrit ®
» In 2008:
˃ STADA via a sales license granted by BIOCEUTICALS
Marketed Epo-zeta in Germany / Silapo®
» Indications:
˃ Treatment of symptomatic anemia with chronic renal failure
˃ Treatment of anemia in adult patient receiving chemotherapy
www.stada.com
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» In 2011: STADA via non exclusive distribution rights licence granted
by Gedeon Richter Plc. Hungary / Marketing of Rituximab and
Trastuzumab in Europe and the CIS area.
˃ Rituximab (Mobtera®): monoclonal antibody for the treatment of
various forms of cancer, European market volume ~ 1,15 B€ (in 2011)
˃ Trastuzumab (Herceptin®): monoclonal antibody for treatment of
certain forms of breast cancer and stomach cancer, European market
volume ~ 1,39 B€ (in 2011)
» Approval is expected for the middle of 2018.
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www.stada.com
» In 2013:
˃ STADA via a sales licence granted by Apotex Inc. (the largest
Canadian owned pharmaceutical company) / Grastofil® Filgrastim
˃ STADA shall assume sales of the biosimilar for nearly all EU countries.
˃ Sales are planned to commence in 2014.
» Indication:
˃ Reduce the incidence of febrile neutropenia in patients with nonmyeloid malignancies
+
+
Receiving myelo-suppressive anticancer drugs
Undergoing myelo-ablative chemotherapy followed by bone marrow
transplantation.
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www.stada.com
» In 2014:
˃ STADA obtained marketing rights via Richter-Helm BioTec
GmbH, Hamburg for teriparatide.
˃ Teriparatide: expected to be launched on the market in 2019
under the STADA label.
˃ Throughout Europe following the expiration of the patent of the
original product Forsteo®.
» Indication:
˃ Treatment of:
+ Postmenopausal osteoporosis
+ Male osteoporosis
+ Glucocorticoid-induced osteoporosis
www.stada.com
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» COMPANY HISTORY
» ID
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˃
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˃
˃
Key Figures
Worldwide presence
Organization chart
STADA’s activities
EG Labo
Employees
» FINANCIAL ANALYSIS
» STADA’S STRATEGY
» OUTLOOKS
» SWOT
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Parent
company
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» 1979: creation Laboratoires Eurogenerics Belgique
» 1991: Purchased Eurogenerics by STADA AG
» 1996: Foundation EG Labo–Laboratoires Eurogenerics (France)
» 1999: Development accentued by a law for Social Security « right
of substitution for pharmacists »
» 2012: Acquisition of LERO laboratory (expert in OTC health
nutrition product)
» 2013: Launch nicotin gum  Smoking cessation
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7th
2010
2011
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» 600 generics
» € 31 Million of 'Unités Communes de Dispensation‘
» +4000 pharmacies
» 3 millions of boxes per year
» Covers 90% of substitution products
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http://www.eglabo.fr/wp/en-chiffres/
+ 16,75%
140
120.522
120
100
98.927
102.299
103.233
2010
2011
Sales (M€)
80
60
40
20
0
2009
Years
http://www.societe.com/societe/e-g-labo-laboratoires-eurogenerics.html
2012
40
Parent
company
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» COMPANY HISTORY
» ID
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Key Figures
Worldwide presence
Organization chart
STADA’s activities
EG Labo
Employees
» FINANCIAL ANALYSIS
» STADA’S STRATEGY
» OUTLOOKS
» SWOT
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• Total number: 10, 084 (on June 30, 2014)
• Evolution of total number : + 19% (versus 8463, 6 months 2013)
12000
10000
8000
Employees’
number
6000
4000
2000
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0
2009
2010
2011
2012
2013
2014
(June 30)
» Distribution by functional area (on December 31,2013)
Marketing/Sales
Logistics
30%
Finance/IT
39%
Administration
4%
3%
7%
6%
11%
Product development
Procurement/Supply
Chain
Production/Quality
Management
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» Distribution by geographical area (on December 31,2013)
Employees’
number
6000
5000
4000
54,1%
3000
2000
1000
14,2%
18,6%
13,1%
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0
Germany
Central Europe
CIS/Eastern Europe
Asia&Pacific
» Distribution by functional and geographical area (on December 31,2013)
6000
Administration
5000
Product development
4000
Procurement/Supply Chain
3000
Production/Quality
Management
Finance/IT
2000
Logistics
1000
Marketing/Sales
0
Germany
Central Europe
CIS/Eastern Europe
Asia&Pacific
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» 2014: Increase of the employees’ number
• By external growth
– 2 Vietnamese companies
» Pymepharco (1108 employees)
» STADA Vietnam (505 employees)
– the British supplier Thornton&Ross (147 employees)
• Quite no internal growth
– implementation of « STADA – build the future » since 2011
Restructuring measures
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» High share of women in management positions: 51% (2013)
» Decentralized organization of personnel management
˃ Recruitment, training, remuneration
» Continual personnel development for sustainable development
˃ Career training programs (pharmaceutical, administrative and warehouse
logistics areas)
˃ Foreign language classes…
˃ Internships for young individuals
˃ Talent management (program « STARS »: Searching Talent in All Regions of
STADA)
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» COMPANY HISTORY
» ID
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Key Figures
Worldwide presence
Organization chart
STADA’s activities
EG Labo
Employees
» FINANCIAL ANALYSIS
» STADA’S STRATEGY
» OUTLOOKS
» SWOT
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50
€M
2,500
2,000
1,500
2012
2013
1,000
500
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0
Sales
Net income
EBIT
€M
1,400
1,200
1,000
equity
800
Non current borrowed
capital
600
400
200
0
2012
2013
• Financial Independence Ratio = 0,74 < 1
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BFR +
118 €M
FRNG +
211 €M
BFR +
182 €M
FRNG +
308 €M
T+
126 €M
T+
92 €M
2012
2013
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Company's ability to generate earnings from its
investments :
» Return on assets :
ROTA = 11,2%
» Return on equity :
ROE = 12,2%
˃ how effectively a company's management uses investors' money
˃ STADA generated a 12,2% profit on every euro invested by shareholders
ROE and ROTA are weak.
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MC: 44 B€
MC: 16.6 B€
MC: 1.57 B€
MC: 4.9 B€
MC: Market capitalization
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www.finance.net
» COMPANY HISTORY
» ID
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Key Figures
Worldwide presence
Organization chart
STADA’s activities
EG Labo
Employees
» FINANCIAL ANALYSIS
» STADA’S STRATEGY
» OUTLOOKS
» SWOT
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Based on 3 growth fields
Acquisition area of
branded products
Expansion of
international business
activities
Biosimilars
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WHY?
• Fewer regulatory interventions
• More attractive margins
• Contribute 58% to adjusted operating
earning
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Branded products contribute 58% to adjusted operating profit
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STADA_Q3-2014_E
HOW?
 In 2013: N°5 British OTC
 In 2014: Russian product range:
Aqualor®
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IN THE FUTURE
Currently
600 M€ for Branded Product
In the future
1 B€ for Branded Product
 Acquisition Flexitol® from LaCorium
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https://www.stada.com/media-public-relations/press-releases/
Based on 3 growth fields
Acquisition area of
branded products
Expansion of
international business
activities
Biosimilars
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WHY?
• Introduction of STADA on other market
• Emerging market with less competition
• Benefit from the best of the country
• Implant of manufacturing site
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HOW?
» Take the emerging markets at an early stage
» Market in Asia & Pacific : 59% sales
˃ Initial consolidation as a subsidiary of STADA
Pharmaceuticals (Beijing) Ltd. in China.
˃ Consolidation of STADA Vietnam J.V. Co., Ltd. as a
subsidiary.
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Based on 3 growth fields
Acquisition area of
branded products
Expansion of
international business
activities
Biosimilars
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WHY?
• Biopharmaceuticals patent-free
• Lowest risk
• Lowest costs
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HOW?
Opt for an in-licensing strategy based on the company’s experience
with marketing in Europe and worldwide (Epo zeta)
Teriparatide
Filgrastim
2014
2018
Rituximab
Trastuzumab
2019
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» COMPANY HISTORY
» ID
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Key Figures
Worldwide presence
Organization chart
STADA’s activities
EG Labo
Employees
» FINANCIAL ANALYSIS
» STADA’S STRATEGY
» OUTLOOKS
» SWOT
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» Expansion strategy
˃ For generic core segment
˃ For branded product core segment
» Expansion of specific projects
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» Pursuing the expansion strategy
Global pharmaceutical growth expected: 5 to 7% per year until 2018.
 STADA Group: end 2013:
 > 1100 approval procedures
 > 150 API
 > 50 countries
 724 individual products launched in 2013
 7% of sales : products launched in the two last years
 > 16 000 products packaging marketed by the group
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Well-filled pipeline until 2022 for some products
» For Generic core segment (1)
GEOGRAPHIC DISTRIBUTION OF MEDICINE SPENDING
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IMS Market Prognosis, September 2014
IMS Institute for Healthcare Informatics, October 2014
» For Generic core segment (2)
˃ In EU:
+ Germany, Italy, France, UK, Spain: >€ 1,1 billion expected for sales
(2014 – 2017)
+ Reduced costs in individual national health care systems
STADA Group regional development
in 2013 for generics
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(According to STADA Report July 2014)
» For Generic core segment (3)
˃ In Asia and Pacific
– Market growth expected from 2013 to 2018: 14%
– Licensing of STADA products in Myanmar
˃ For selected markets : 8,7% growth expected until 2018 (IMS)
– Central Europe, CIS and Eastern Europe
» In Russia: 10,6% growth expected (2014-2018)
Development of the Russian pharmaceutical market
(in € million)
₊
₊
₊
2 local suppliers
Niche markets
Limited government regulation
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STADA, Broker Research
» For Generic core segment (5)
˃ Ongoing patent expiration
74
IMS MIDAS, June 2014
» For branded products
STADA Group regional development
in 2013 for Branded products
˃ Focus on individual markets
˃ Product and country-specific growth
(According to STADA Report July 2014)
– Focus on highly profitable branded products:
» Thornton & Ross (OTC products) / Britannia (Apo-Go)
» Vitaprost®, Chondroxide®, Aqualor®
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˃ Expansion of Vrsac site (Serbia): development center
˃ Development contracts in India (currently: 4 projects)
» Expansion of specific projects
˃ OTC expansion (9th world rank, 2013)
+ Value-adding acquisitions
+ High marging portfolio products
˃ Biosimilar: new developments expected
+ In-licensing of Adalimumab (Humira®) from mAbxience (patentfree in US 2016, EU 2018)
+ Launching of Teriparatide, Rituximab, Trastuzumab biosimilars
Biosimilar portfolio with low risk licensing approach
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» COMPANY HISTORY
» ID
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˃
˃
˃
˃
˃
Key Figures
Worldwide presence
Organization chart
STADA’s activities
EG Labo
Employees
» FINANCIAL ANALYSIS
» STADA’S STRATEGY
» OUTLOOKS
» SWOT
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» Adapted to long-term growth potential markets
˃ Continuous flow of new products in Generics
˃ Potential launching dates scheduled > 2020.
» Organic growth expected for branded products
» Cost-effective production: 'time and cheap to market'
strategy
˃ Launchings at the earliest point in time
˃ Best possible costs of production
78
» No own research for new API
+ < 3% turnover, 2013
+ API without any commercial property rights
+ expansion of the existing product portfolio
» Regulatory preparation
+ At least 3 years before launching date
+ Choice of supranational approval processes (such as in EU)
79
Generating economy through optimized batch sizes
» In-house production
+ Low cost locations : Serbia, Russia, Bosnia-Herzegovia,
Vietnam
+ Row material :
– International networks of suppliers
– Mainly low-priced suppliers in Asian countries
+ Own production of leading, high marging branded products
+ Increased proportion of in-house developments e.g from
Serbia.
80
» Optimization of products already launched
˃ Development of new forms of products
˃ Internationalization of national successful products
˃ Optimization in distribution , e.g establishment of a logistics and
distribution center in Dubaï in 2013
Reduced costs of sales
Risk-adverse strategy
81
» Dependance on individual countries
˃ Germany :
+ Discount agreements from public health insurance organisations
+ 67% of sales: generics produced by 3 subsidiaries
» Debts
˃ Dependance on long-term liabilities
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83
» Dependance on individual countries
˃ Germany :
+ discount agreements from public health insurance organisations
+ 67% of sales: generics produced by 3 subdisdiaries of the Group
» Debts
˃ Dependance on long-term liabilities
» No worldwide distribution of STADA subsidiaries
˃ No subsidiary in America
˃ No subsidiary in Japan
84
» No worldwide distribution of STADA subsidiaries
85
» Development of biosimilar production
» New acquisitions
86
» Changed or additional state regulation
» Intensive competition
˃ With generic products
˃ Agreements with European health insurance organizations
» Strong volability in interest rate
˃ Russian ruble, Serbian dinar, pound sterling
» Default risk in Eastern Europe
˃ Impact of global economic crisis
˃ CIS economic crisis and restrictions against Russia
87
Most of production locations are in Eastern Europe !
STRENGHTS
» Adapted to long-term growth
potential markets
» Organic growth expected for
Branded Products
» Cost-effective production
WEAKENESSES
» Dependance on individual
countries
» Debts
» No worldwide distribution of
subsidiaries
OPPORTUNITIES
» Biosimilar development
» New acquisitions
THREATS
»
»
»
»
»
Changed state regulation
Intensive competition
Default risk in some markets
Strong volability in interest rate
CIS crisis
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89
90