Committed to innovation and growth - Alan Hippe, CFO Roche Group New York, May 2013 - Committed to innovation and ...
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Committed to innovation and growth Alan Hippe, CFO Roche Group New York, May 2013
This presentation contains certain forward-looking statements. These forward-looking
statements may be identified by words such as ‘believes’, ‘expects’, ‘anticipates’, ‘projects’,
‘intends’, ‘should’, ‘seeks’, ‘estimates’, ‘future’ or similar expressions or by discussion of,
among other things, strategy, goals, plans or intentions. Various factors may cause actual
results to differ materially in the future from those reflected in forward-looking statements
contained in this presentation, among others:
1 pricing and product initiatives of competitors;
2 legislative and regulatory developments and economic conditions;
3 delay or inability in obtaining regulatory approvals or bringing products to market;
4 fluctuations in currency exchange rates and general financial market conditions;
5 uncertainties in the discovery, development or marketing of new products or new uses of existing
products, including without limitation negative results of clinical trials or research projects, unexpected
side-effects of pipeline or marketed products;
6 increased government pricing pressures;
7 interruptions in production;
8 loss of or inability to obtain adequate protection for intellectual property rights;
9 litigation;
10 loss of key executives or other employees; and
11 adverse publicity and news coverage.
Any statements regarding earnings per share growth is not a profit forecast and should not be interpreted
to mean that Roche’s earnings or earnings per share for this year or any subsequent period will
necessarily match or exceed the historical published earnings or earnings per share of Roche.
For marketed products discussed in this presentation, please see full prescribing information on our
website – www.roche.com
2
All mentioned trademarks are legally protected
Update on 2013 Strategy R&D productivity and allocation of resources Growth platforms Summary
Q1 2013: Strong start to the year
2013 2012 Change in %
CHF bn CHF bn CHF CER
Pharmaceuticals Division 9.2 8.6 6 7
Diagnostics Division 2.4 2.4 1 1
Roche Group 11.6 11.0 5 6
4
CER=Constant Exchange Rates
Q1’ 13: US and Emerging markets driving sales
growth
Pharma Diagnostics
Asia-
Asia 10% Pacific
10%
Latin Latin
America 4% America
7%
EEMEA 11%
North
US 13% America -4%
Japan 2% Japan -2%
Europe 1% EMEA 1%
All growth rates at CER=Constant Exchange Rates; EEMEA=Eastern Europe, Middle East, Africa; 5
EMEA=Europe, Middle East and AfricaContinued high sales growth1
8%
6% 6% 6%
6%
4%
4%
4%
2%
2%
1%
0%
0% 0%
-2%
-4% -3%
-5%
-6%
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1'
'10 '10 '11 '11 '11 '11 '12 '12 '12 '12 13
6
At CER=Constant Exchange RatesUpdate on 2013 Strategy R&D productivity and allocation of resources Growth platforms Summary
Roche strategy: Focused on medically
differentiated therapies
Regulators:
Premium for innovation
Pharma Dia
Optimised benefit / risk ratio
Payors:
Focus Optimised benefit / cost ratio
MedTech
OTC
Generics
Differentiation
8Roche strategy: Tailor made access options for
high value products
Established Markets Emerging Markets
Value based pricing Tiered pricing
Limited patient access
Universal access and coverage -> Enable access to public funding
-> Negotiate prices for new medicines
9Update on 2013 Strategy R&D productivity and allocation of resources Growth platforms Summary
R&D productivity differs substantially among
players
Average annual
NME peak sales (2001-10)1 $ 710 m Peak Sales 4x
US$ bn (per $1 bn R&D)
Roche
$ 165 m Peak Sales
(per $1 bn R&D)
Average annual R&D investment (1997-2006)1
US$ bn
1Peak sales and R&D calculated pro forma to account for major M&A 11
Source: EvaluatePharma; BCG analysis; Roche analysisRoche: R&D well balanced from a risk & disease
point of view
2012 Roche budget
Oncology
Metabolism Inflammation
CNS
Virology
0% 5% 10% 15% 20% 25% 30%
Industry average probability of success – Phase 0 to Registration
12
Source: Bernstein Equity Research, Tufts University and Roche analysisR&D spend: Balance between short and long term
R&D spend by phase
~50% ~50%
Invest for Invest for the
the future near term
Research/ Phase 0 Phase 1 Phase 2 Phase 3 Filing Phase 4
Discovery
13
Note: Based on 2012 budgetChanging the standard of care in HER2
Securing future growth by improving the standard of care
Biosimilars
launch (EU)
2nd line Xeloda + lapatinib T-DM1 (EMILIA)
mBC
1st line Herceptin Herceptin & Perjeta +
+ chemo
T-DM1 & Perjeta (MARIANNE)
mBC chemo (CLEOPATRA)
Adjuvant Herceptin Herceptin subcutaneous + chemo Herceptin & Perjeta T-DM1 & Perjeta
BC + chemo (HannaH) + chemo (APHINITY) + chemo
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Filing timelines
Established standard of care Potential new standard of care Potential future standard of care
14Changing the standard of care in hematology
Different mechanisms of action
Potential filing of
first indication
2012 2014 2016 2018 2020
MabThera
Rituxan*
GA 101
Bcl-2
Anti-CD22 ADC
Anti-CD79b ADC
15
* Patent expiry in the US: 2018Update on 2013 Strategy R&D productivity and allocation of resources Growth platforms Summary
Roche Oncology
A portfolio of distinctive drugs
(CHF mn)
25'000.00
20'000.00
15'000.00
10'000.00
5'000.00
'0.00
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
CER - @ A12 CHF*
17
Note: Sales at 2011 FX ratesEmerging markets remain strong
1,200 Q1 ‘13
1H ‘12 2H ‘12 +11%
+13% +15%
1,000
-27%
0%
+9%
,800 +18% India
Russia
+7%
S. Korea
,600
Turkey
+5%
Mexico
,400 Brazil
China
,200
+20%
,0
Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013
18
All growth YoY at CER=Constant Exchange RatesIncreasing polarisation in emerging markets
Growth in patented medicines and unbranded generics
Example: Brazil market showing evidence of polarisation
100%
90% Non-categorised
80%
70%
Protected originals
Share expected
60% to grow further
Unbranded copies
50%
40%
Branded copies
30%
20%
Non-patented originals
10%
0%
2000 2005 2010
19
Source: IMSUpdate on 2013 Strategy R&D productivity and allocation of resources Growth platforms Summary
Roche: Operating profit and margin continuously
increased
Group core operating profit and margin
37.7%
34.9% 35.6% % of sales
33.0% 33.2%
+11%1
17.16
16.27 16.59
15.07 15.15
CHF bn
2008 2009 2010 2011 2012
21
1 At CER=Constant Exchange RatesRoche: Cash flow and margin continuously
increased
Group operating free cash flow and margin
% of sales
33.8%
32.1% 32.3%
29.8%
27.1% +10%1
15.7 15.4
14.1 13.7
12.4
CHF bn
2008 2009 2010 2011 2012
22
1 At CER=Constant Exchange RatesQ1 2013: Pipeline milestones
aleglitazar
metabolic diseases
lebrikizumab mGluR2 antagonist
asthma treatment-resistant depression
gantenerumab1 mGluR5 antagonist
Alzheimer’s treatment-resistant depression
ocrelizumab crenezumab
MS Alzheimer's
bitopertin Anti-PD-L1* HCV combo
schizophrenia solid tumours HepC
MEKi Anti-EGFL7 etrolizumab
melanoma solid tumours ulcerative colitis Oncology
onartuzumab (MetMAb) EGFR ADCC MAb (GA201) Anti-factor D Neuroscience
NSCLC solid tumours geographic atrophy
Virology
obinutuzumab (GA101) * PI3 kinase Anti-PCSK9
Immunology
CLL solid tumours metabolic diseases
Ophthalmology
Kadcyla dual PI3 kinase/mTOR inclacumab (P selectin)*
HER2+ BC solid tumours ACS/CVD Metabolism
Ph III NMEs Late stage enabling data expected in 2013
2013 R&D to remain stable
*Data presentation planned/presented 23
1Phase II/III label enablingSummary: Focus on innovation and growth
Strategic focus on innovation and driving Personalised
1 Healthcare
Strong growth in US and Emerging Markets;
2 innovative access models
3 Leading product pipeline providing value for the future
24Doing now what patients need next
You can also read
