Cowen Healthcare Conference Shire plc March 9, 2010 Michael Cola - - PowerPoint PPT Presentation

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Cowen Healthcare Conference Shire plc March 9, 2010 Michael Cola - - PowerPoint PPT Presentation

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Cowen Healthcare Conference Shire plc March 9, 2010 Michael Cola President, Specialty Pharmaceuticals Our purpose We enable people with life-altering conditions to lead better lives 1 THE SAFE HARBOR STATEMENT UNDER THE PRIVATE

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Our purpose

We enable people with life-altering conditions to lead better lives

Cowen Healthcare Conference

Shire plc March 9, 2010

Michael Cola

President, Specialty Pharmaceuticals

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To be as brave as the people we help 2

THE “SAFE HARBOR” STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

Statements included herein that are not historical facts are forward-looking

  • statements. Such forward-looking statements involve a number of risks and

uncertainties and are subject to change at any time. In the event such risks or uncertainties materialize, Shire’s results could be materially adversely affected. The risks and uncertainties include, but are not limited to, risks associated with: the inherent uncertainty of research, development, approval, reimbursement, manufacturing and commercialization of Shire’s Specialty Pharmaceutical and Human Genetic Therapies products, as well as the ability to secure and integrate new products for commercialization and/or development; government regulation of Shire’s products; Shire’s ability to manufacture its products in sufficient quantities to meet demand; the impact of competitive therapies on Shire’s products; Shire’s ability to register, maintain and enforce patents and

  • ther intellectual property rights relating to its products; Shire’s ability to obtain

and maintain government and other third-party reimbursement for its products; and other risks and uncertainties detailed from time to time in Shire’s filings with the Securities and Exchange Commission.

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To be as brave as the people we help 3

Shire’s business model has been the key to our success

  • Specialty

biopharmaceutical company

  • Treatment of symptomatic

diseases

  • Small sales forces
  • Focus on lower risk

projects with relatively fast development timelines and strong IP protection

15% 169% EBITDA 16% 190% Revenues

CAGR % Growth

Note: data covers timeframe of 1/1/2003 through 12/31/2009

Business Model Financial impact past 7 years (2003 – 2009)

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To be as brave as the people we help 4 To be as brave as the people we help 4

Sustaining our financial performance Focused on the needs

  • f patients

Acquisitions and geographic expansion

Aspiration to grow sales in the mid-teens range year-on- year on average over the course of 2009 through 2015 Presence in 28 countries and growing Acquisition of EQUASYM facilitates immediate access to EU ADHD market

Pipeline opportunities for long term growth

Progress in development programs, antithrombotic, CarrierWave technology, HGT research, and new technology (Santaris)

Launching new products

INTUNIV – first and only selective a2A agonist indicated for the treatment of ADHD* VPRIV (velaglucerase alfa) and REPLAGAL currently addressing unmet needs

Strategy is delivering

*The active ingredient in INTUNIV, is thought to selectively stimulate a2A adrenoreceptors in the prefrontal cortex. See Intuniv Wayne, PA: Shire US Inc; 08/2009 and Wang M, Ramos BP, Paspalas CD, et al. α2A-Adrenoceptors strengthen working memory networks by inhibiting cAMP-HCN channel signaling in prefrontal cortex. Cell. 2007;129:397-410

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To be as brave as the people we help 5

  • $474m

2009 Total revenues in-line with 2008

VYVANSE $3.0bn XR Prod Sales LIALDA Other ELAPRASE 2008 ACTUAL 2009 ACTUAL $3.0bn

XR Royalties

Core Products Reported Growth FY +25% Q4 +36% +$68m +$186m +$96m +$48m +$37m Other FOSRENOL REPLAGAL +$29m +$18m

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To be as brave as the people we help 6

Core product sales growth

100 200 300 400 500 600 700

Q1 0 7 Q2 0 7 Q3 0 7 Q4 0 7 Q1 0 8 Q2 0 8 Q3 0 8 Q4 0 8 Q1 0 9 Q2 0 9 Q3 0 9 Q4 0 9

$m

FY 2007 $1.1bn FY 2009 $2.1bn CAGR = 35%

Core product sales represent Shire’s product sales excluding ADDERALL XR.

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To be as brave as the people we help 7

Specialty Pharma – 2009 key highlights

  • Successfully managed through AXR generic erosion by capturing

significant cash flow while growing VYVANSE sales

  • Gained FDA approval for and launched INTUNIV
  • Initiated multiple VYVANSE non-ADHD programs
  • Acquired EQUASYM to jump-start EU ADHD footprint
  • Approaching $0.5bn in net sales for the GI portfolio
  • Expanded pipeline through multiple initiatives including the

progression of multiple CarrierWave programs and SPD 535 (anagrelide analogue)

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To be as brave as the people we help 8

VYVANSE demonstrated outstanding growth in 2009 in the face of ADDERALL XR going generic

Source: IMS NPA Monthly

13.3% (+2.6 share points) Dec Avg Market Share +9.2% Total ADHD Market TRx Volume +65% TRx Volume +58% Net Sales 2009 vs. 2008 Measure

  • Q409 growth vs. Q408 growth was similarly strong
  • Market share grew in both the pediatric and adult patient segments
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To be as brave as the people we help 9 To be as brave as the people we help 9

50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 450,000 500,000 550,000

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TRx Volume

0% 2% 4% 6% 8% 10% 12% 14%

TRx Share

20+ TRx 0 - 19 TRx TRx Share

Vyvanse continues to grow share and volume

Adult launch

Vyvanse TRx Volume and Share June 2007 – January 2010

Source: IMS NPA Monthly

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To be as brave as the people we help 10

3% 4% 5% 6% 7% 8% 9% 10% 11% J a n

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TRx Share

FDA Adult Approval

Adult Market Share 9.9%

  • Adult launched one year after Pediatric
  • Adult market growth is 4-5x Pediatric rate

+18.4% 2009 +18.0% Q4 IMS Growth YOY Source: IMS NPA Monthly

VYVANSE Adult share continues to grow

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To be as brave as the people we help 11

INTUNIV Launch update

  • Although it is still early post launch for INTUNIV, we are

very encouraged by the early indicators

  • For the week ending February 26th, 2010, the overall national

market share was 1.4%, and it is significantly higher in the important child / adolescent psychiatry and general psychiatry subsets of prescribers

  • Approximately 7,500 physicians have prescribed INTUNIV
  • Payors: formulary status still being reviewed by managed care
  • plans. Currently most commercial managed care plans providing

unrestricted access. Medicaid reimbursement progressing as expected

Source: IMS NPA

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To be as brave as the people we help 12

0% 5% 10% 15% 20% 25% 30% 35%

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TRx Share

PENTASA LIALDA GIBU Portfolio

Source: IMS NPA Monthly

Shire GI Portfolio Oral 5-ASA Monthly TRx Share Shire GI Portfolio – Monthly TRx Share of Oral 5-ASA

Shire GI Portfolio TRx Share = 33.0%

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To be as brave as the people we help 13

Select growth opportunities for Specialty Pharma portfolio

  • INTUNIV: continuing progress on life cycle opportunities
  • On-going studies to evaluate efficacy in combination with stimulants and

evening dosing

  • VYVANSE non-ADHD: Phase 2 clinical trials actively enrolling

patients with data beginning in 2011

  • Adjunctive therapy in depression
  • Cognitive impairment in depression
  • Negative symptoms and cognitive impairment in schizophrenia
  • Globalization of the ADHD portfolio
  • VYVANSE
  • Launched in Canada this month
  • Market authorization filings under review in Mexico and Brazil
  • Continued enrollment of EU registration trials
  • LIALDA: global Phase 3 trials in diverticulitis are ongoing
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To be as brave as the people we help 14

Efforts continue to progress early pipeline products

  • SPD 535 (anagrelide analogue) - platelet lowering ability

without PDEIII inhibition

  • Initial PoC program targets prevention of thrombotic complications

associated with arteriovenous grafts in hemodialysis

  • Proof-of-principle for broader utility as an anti-coagulant
  • Estimated data availability – mid-2010
  • CarrierWave
  • Primarily focused in pain and ADHD
  • Estimated data availability - mid-2010
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To be as brave as the people we help 15

HGT Product launch preparations for 2010 and beyond

  • VPRIV
  • Approved by FDA and launched in the US
  • Price at launch: $1350 for 400Uvial
  • Direct co-pay assistance to eligible patients in US to reduce

patient burden/access barrier

  • Continued financial assistance through patient associations
  • Over 400 patients have received VPRIV globally
  • REPLAGAL
  • Focus on market growth and switch
  • Continue to address unmet need in the US
  • Fast track designation granted by FDA / rolling submission

initiated

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To be as brave as the people we help 16

More than 300 cumulative patients added to REPLAGAL therapy in 2009 with the majority coming from patient switches

50 100 150 200

Q1 Q2 Q3 Q4

Net new patient additions

Net new treatment naïve patients Patient switches

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To be as brave as the people we help 17

  • Focused growth in R&D $
  • Leverage technology platforms
  • Incremental returns from investments
  • Sustained future growth

INVESTMENT IN PIPELINE

  • SG&A $ increases less than product sales over time
  • Sustained tax rate
  • Completion of manufacturing expansion

LEVERAGE INFRASTRUCTURE INVESTMENT

  • Continued growth from existing portfolio
  • New product launches e.g. INTUNIV, VPRIV and REPLAGAL
  • Continued international growth

SUSTAINED CORE PRODUCT SALES GROWTH KEY ELEMENTS GROWTH DYNAMICS

2010 Organic growth dynamics

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To be as brave as the people we help 18

Potential launches from 2010-2016*

2012 2011 2013-2016

  • VYVANSE (Canada)
  • FOSRENOL CKD

(EU)

  • VPRIV (US&EU)
  • FIRAZYR (ROW)
  • REPLAGAL (US)
  • HGT 1110 (MLD)
  • IDURSULFASE-IT
  • SANFILIPPO ERT
  • HGT 2610 (GLD)
  • JUVISTA
  • LIALDA

DIVERTICULITIS

  • SPD 535

*Subject to regulatory approvals

  • VYVANSE (EU)

2010

  • VYVANSE (Latin

America)

  • FIRAZYR (US)
  • VPRIV (ROW)
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To be as brave as the people we help 19

Solid foundation for future growth

  • Strong financial performance
  • Core product sales* up 25% in 2009
  • Proactive cost management
  • Strong cash generation
  • Strategy is delivering
  • Driving growth from balanced portfolio of 8 key products
  • INTUNIV launch off to a strong start
  • VPRIV approved by FDA and available pre-approval ex-US
  • REPLAGAL received Fast Track designation
  • Increasing our global reach
  • Developing, advancing and enhancing our strong pipeline
  • Aspiration to grow sales in the mid-teens range on average

between 2009 and 2015

*Core products represent Shire’s products excluding ADDERALL XR

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Our purpose

We enable people with life-altering conditions to lead better lives

Questions and Answers

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Our purpose

We enable people with life-altering conditions to lead better lives

APPENDIX

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To be as brave as the people we help 22

71% 55% SG&A - Core product sales 29% 25% R&D - Core product sales 45% 1,653 25% 2,067 Core product sales FINANCIAL RATIOS (% of core product sales) 34% 33% EBITDA

(2) (% total revenue)

28% 25% EBITDA

(1) (% of product sales)

13% 42%

  • 3%

42% SG&A 27% 17% 10% 19% R&D 88% 86% Gross margin 27% 2,754

  • 2%

2,694 Product sales y-o-y Growth FY 08 y-o-y Growth FY 09 FINANCIAL RATIOS (% of product sales)

2009 Key financial ratios

(1) Excluding royalties and other revenues. (2) Including royalties and other revenues. This slide contains Non GAAP financial measures. See appendix for a list of items excluded from the US GAAP equivalent used to calculate these measures.

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To be as brave as the people we help 23

Reported EPS-ADS

=

Tax rate

  • 5-10% growth in R&D and SG&A investment
  • Operating leverage on Core Product Sales

R&D and SG&A

=

Gross Margins

Growth in AXR royalty offset by lower other royalty income

Royalties

Core product growth > AXR decline

Total Product Sales

2009 growth continues, with potential to accelerate

Core Product Sales

(see Appendix for more analysis) Direction Versus FY 09

2010 Dynamics

Emerging shape of Shire 2010 Income Statement

Interest on convertible = $34m pa Note:

  • 0.08

A 10 cent strengthening of the $ against the € 0.03 A 10 cent strengthening of the $ against the £

  • 0.05

EPS-ADS $ Sensitivity to Forex Movements: