Corpor porate ate Pr Presen esentation tation Proactive Pr - - PowerPoint PPT Presentation
Corpor porate ate Pr Presen esentation tation Proactive Pr active Investor vestors 24 J Januar ary y 2019 Peter Butterfield Chief Executive Officer Overview About out Alliance liance Ph Pharma arma Corporate Presentation
Chief Executive Officer
24 January 2019 Corporate Presentation – Proactive Investors 3 Overview
Overview 24 January 2019 Corporate Presentation – Proactive Investors 4
Growth through acquisition Selective approach Facilitated by strong cash generation Significant M&A and integration expertise >35 deals in 20 years Organic growth Through our International Star brands
Operating a proven ‘Buy and Build’ strategy: Owns or licenses the rights to > 90 pharmaceutical & consumer healthcare products
Limited number of promoted, ‘International Star brands’ Supported by a diversified portfolio of cash-generative Local brands Wide international reach through an extensive network of distributors Sales in >100 countries
Headquartered in the UK, with affiliate offices in Europe, the Far East and the US
Overview 24 January 2019 Corporate Presentation – Proactive Investors 5
Our vision:
To be a leading international healthcare business built around products which are clinically valuable to patients. We will be both the partner and employer
Our mission:
To create partnerships that unlock potential for brands, businesses and people around the world
1 2 3 4 5 6 8 7 9 10
International offices UK - Chippenham UK - Chester Dublin Paris Dusseldorf Milan Madrid Shanghai Singapore North Carolina Distributor relationships
Overview
30% International 22% Mainland Europe 47% UK & ROI (H1 2018)
1 2 3 7 4 5 6 10 8 9
Team
Countries
Offices
People
Corporate Presentation – Proactive Investors 24 January 2019
Offices in nine countries Broad international base of distributors
Revenue by geography
6
Year ended 31 Dec 2015 £m 31 Dec 2016 £m 31 Dec 2017 £m Revenue 48.3 97.5 101.6 Operating profit before non-underlying items 10.6 25.6 25.8 Exceptional operating items 6.3
Operating profit after exceptional items 17.0 25.6 30.2 Profit before tax before non-underlying items 8.9 22.2 24.0 Profit before tax after non-underlying items 15.2 22.2 28.4
Financial summary 24 January 2019 Corporate Presentation – Proactive Investors 7
Our 2018 preliminary results announcement is due on 26 March 2019
Free cash flow
(2017: £22.0m)**
Revenue*
+22%
Net debt
(30 Jun 2018: £86.3m)
Leverage at
Adjusted net debt to EBITDA ratio
* ‘see through’ revenue – including underlying sales from Nizoral ** restated following the adoption of IFRS 16
Acquisitions
35 deals in 20 years One or more deals every year since 2006 Mix of International Star and Local brands Strong financial discipline; mostly cash-funded Three larger strategic deals requiring equity raise
Buccastem Timodine £7.5m Cambridge £16.4m Anbesol Ashton & Parsons £2.26m Quinoderm Ceanel £1.5m Opus £8m Lypsyl £1.9m Syntometrine (excl. UK) £7.5m Irenat (Germany) MacuShield £10.8m Anti- malarials £4.2m Sinclair £127.5m Diclectin UK £1.5m Diclectin EU
£1.0m
Sinopharm £1.4m Vamousse £9.7– 13.1m Ametop £5.6m Nizoral (APAC) £60.3m
Corporate Presentation – Proactive Investors 24 January 2019 8
2010 2012
Rizuderm +5 products £2.4m
2011 2009 2013 2014 2015 2016 2017 2018
Kelo-cote Treatment of Hypertropic/Keloid scars Nizoral Medicated anti-dandruff shampoo MacuShield Eye supplement Vamousse Treatment for head lice Xonvea Prescription medicine for the treatment of nausea and vomiting of pregnancy (NVP), where conservative management has failed
Organic growth
International Stars – a select group of global growth brands Local brands
Corporate Presentation – Proactive Investors 24 January 2019 9
Sold in a limited number of local markets Require little or no promotional investment Mix of prescription and consumer products Highly cash generative
37% International Star brands 63% Local brands
2018 Revenue by brand
▪ Excellent performance in 2018, particularly in Asia Pacifc and mainland Europe ▪ Continued growth through maintaining the level of marketing support ▪ Lead corporate sponsor of G- Scars Society promoting best practice in scar management globally
24 January 2019 Corporate Presentation – Proactive Investors 10 International Star brands
▪ UK’s most recommended supplement by eye experts ▪ Domestic growth from key high street and online retailers ▪ Launches planned in a number
2020 to drive further sales growth ▪ Further range enhancement underway ▪ 2018 performance in line with expectations; marketing investment planned to benefit from key ‘back to school’ period in H2 ▪ Global marketing strategy being developed ▪ Assessing prospects for longer term growth through our EU affiliates and global distributor network
REVENUE GROWTH (2018)
REVENUE GROWTH (2018)
REVENUE GROWTH (2018)
▪ Medicated anti-dandruff shampoo acquired from Johnson & Johnson (J&J) in June 2018 ▪ 2018 performance in line with expectations ▪ 2 year transitional services agreement - J&J continue to
profit to Alliance until marketing authorisations transfer
ACQUIRED JUNE 2018 2018 sales: Sales at acquisition (2015):
2018 sales: Sales at acquisition (2015):
2018 sales: Sales at acquisition (2017):
2018 sales (H2): Sales at acquisition (2018):
Product focus - Xonvea 24 January 2019 Corporate Presentation – Proactive Investors 11
Market access team engaged with NHS payers and
budget holders; feedback to date has been positive in terms of their appetite to add the product to formularies
Sales team build and training completed Attendance at key scientific congresses ongoing, several
with symposia and speakers, providing reach to all relevant healthcare professionals – GPs, Obstetricians, Midwives, Pharmacists and Payers Pan-European product for nausea and vomiting of pregnancy (NVP), in- licensed from Duchesnay Inc, Canada Well established Over 40 years use in Canada / 33m women Approved by the FDA in the US (DICLEGIS) in 2013 – sales $200m+ pa Real unmet need Up to 80% of pregnant women suffer from NVP 33,000 hospitalisations a year due to NVP Only licensed treatment for NVP in the UK Approved by the UK regulators in July 2018 UK launch on 2 October 2018 EU submissions to follow with first launches expected in late 2019
Local brands 24 January 2019 Corporate Presentation – Proactive Investors 12
Local brands ~90 products sold in a limited number
majority require little or no promotional investment small number of locally promoted brands mix of consumer healthcare & prescription brands All our local brands provide good cash generation for the business Key component of our buy and build strategy Revenues broadly stable over time Reliance on this part of the portfolio is decreasing as revenues from high growth International Star brands increase to form a larger part of our portfolio Average GM% ~51% (H1 2018)
Prevention & treatment of infections in burns and wounds Flamma Franchise Hydromol Emollient range for dry skin conditions
Treatment for mouth ulcers Aloclair Ashton & Parsons Teething powder
24 January 2019 Corporate Presentation – Proactive Investors 13 Leadership
Alex Duggan
Chief Commercial Officer Alex has over 20 years experience in Consumer Healthcare and Business Management, founding his
winning a Queen’s Award for International Trade in
in Archaeology from Newcastle University. Alex joined Alliance in 2014.
Stephen Kidner
Chief Scientific & Operations Officer Stephen has over 23 years’ experience in pharma development, manufacturing and supply chain management gained with Wyeth and Mundipharma International. He graduated in Chemistry from the University of Wales, Swansea, and holds an MSc in Pharmaceutics from Manchester and an MBA from The Open
Alliance in 2013.
Janice Timberlake
Chief Human Resources Officer Janice is a Fellow of CIPD with over 20 years’ experience in HR roles, having previously held senior roles in My Travel plc and National Environment Research Council. Janice is a Non-executive Director and Trustee of Plymouth Marine Laboratory Ltd and graduated in Geography from Hull University. Janice has been with Alliance since 2011.
Dan Thomas
Chief Corporate Development Officer Since joining Alliance in 2006, Dan has led Alliance’s M&A and licensing activity, completing more than 20
Applied Biochemistry from Brunel University.
Peter Butterfield
Chief Executive Officer A former UK Commercial Director of Cambridge Laboratories Ltd, Peter , Peter has been a member of the Alliance board since 2010, and the Group’s CEO since 1 May 2018. He graduated in Pharmacology from the University of Edinburgh.
Andrew Franklin
Chief Financial Officer Andrew joined Alliance in 2015, having previously been General Manager – European Tax and Accounting at Panasonic. Prior to that, he was Finance Director of Genzyme Therapeutics Ltd and also has 12 years pharmaceutical experience in senior financial positions at Wyeth. Andrew is a Chartered Accountant and graduated in Civil Engineering from the University of Wales, Cardiff.
24 January 2019 Corporate Presentation – Proactive Investors 14 Governance
David Cook
Chairman David is currently CFO and an Executive Director of Ellipses Pharma; prior to that he was CFO and Chief Business Officer at Biotie Therapies Inc. David is a Chartered Accountant and graduated in Chemistry from the University of Oxford. He has been a member of the Alliance Board since 2014 and was appointed Chairman on 1 March 2018.
Peter Butterfield
Chief Executive Officer A former UK Commercial Director of Cambridge Laboratories Ltd, Peter has been a member of the Alliance board since 2010, and the Group’s CEO since 1 May 2018. He graduated in Pharmacology from the University of Edinburgh.
Andrew Franklin
Chief Financial Officer Andrew joined Alliance in 2015, having previously been General Manager – European Tax and Accounting at
he was Finance Director
Therapeutics Ltd and also has 12 years pharmaceutical experience in senior financial positions at
Chartered Accountant and graduated in Civil Engineering from the University of Wales, Cardiff.
John Dawson
Non-executive Director A Pharmacist, with an MSc in Finance and more than 40 years’ sector experience, John was the founder of Alliance and formerly the Group’s CEO.
Nigel Clifford
Non-executive Director Nigel is currently an Operating Partner with Marlin Equity Partners. Prior to this he was CEO
June 2018. In his earlier career he held CEO or senior positions at Procserve Holdings, Micro Focus Int plc, Symbian Software, the NHS and BT. He graduated in Geography from the University of Cambridge and holds an MBA from Strathclyde University.
Jo LeCouilliard
Non-executive Director Jo is currently a Non- executive Director at Circassia Pharmaceuticals plc and Cello Health plc. Her previous roles include Chief Operating Officer at the BMI group, heading up the US vaccines business and Asia Pacific Pharmaceuticals business at GlaxoSmithKline and non-executive appointments at Frimley Park NHS Foundation Trust and at the Duke NUS Medical School in
graduate of Cambridge University and a Chartered Accountant. Jo joined the Board of Alliance on 1 January 2019.
Richard Jones
Non-executive Director Richard is currently CFO and a board member of Mereo BioPharma Group PLC, having joined the company from Shield Therapeutics plc where he was Chief Financial Officer and Company Secretary. After qualifying as a Chartered Accountant, Richard’s earlier career was spent in investment banking, holding senior positions at Investec and Brewin Dolphin Securities. Richard joined the Board
2019.
24 January 2019 Corporate Presentation – Proactive Investors 15 Summary
Growth through acquisitions
✓ Very experienced team behind M&A – more than 35 deals in 20 years ✓ Expertise in sourcing, executing and integrating acquisitions ✓ High cash generation facilitates deal- making
Organic growth primarily from International Star brands
✓ Kelo-cote ✓ MacuShield ✓ Vamousse ✓ Nizoral ✓ Xonvea
Growth strategies via a proven business model
✓ ‘Buy & build’ ✓ Balanced portfolio ✓ No R&D risk
Extensive geographic reach
✓ Direct presence in Western Europe, the US and the Far East ✓ Extensive international partnering network reaching
Diversified portfolio spreads risk
✓ Revenues derive from >90 pharmaceutical & consumer healthcare products spanning multiple therapy areas and geographies
Profitable, cash generative & dividend paying
✓ ~25% EBITDA margin ✓ Good cash conversion ✓ Progressive dividend policy ✓ Leverage currently 2.33 times
Highly capable & scalable
developed
✓ Experienced management team ✓ Engaged and committed workforce ✓ Improving systems capability
24 January 2019 Corporate Presentation – Proactive Investors 16 Questions
Alliance Pharma plc Avonbridge House, Bath Road, Chippenham, Wiltshire SN15 2BB Telephone: +44 (0)1249 466966. Fax: +44 (0)1249 466977 e-mail: info@alliancepharma.co.uk www.alliancepharmaceuticals.com Registered Office: Avonbridge House, Bath Road, Chippenham, Wiltshire, SN15 2BB Registered in England N0. 04241478