Putting ALK on the right growth trajectory

Transcription

1 Putting ALK on the right growth trajectory Økonomisk Ugebrevs Kapitalmarkedseftermiddag 15. marts 2018 Per Plotnikof, VP Corporate Communications and IR Marts 2018

2 Allergy: a global disease with a large unmet need >500 million people affected by allergic rhinitis worldwide 10% not wellcontrolled Since 1923, ALK has pioneered allergy prevention, diagnosis and treatment Currently, ALK treats 1.5 million people DKK billion 120+ in global sales of allergy treatments 10x under-utilisation of AIT in not wellcontrolled patients 2

3 ALK, leader in allergy immunotherapy (AIT) The only disease-modifying allergy treatment 2017 revenue: DKK 2.9 billion ALK: ~40% market share in AIT Patient solutions in all areas of AIT (injections, drops, tablets, Dx and anaphylaxis) Only company with a broadly and FDA approved, clinically tested portfolio of tablet AIT products Present in 32 countries via own affiliates or partners ~2,300 employees Headquartered in Denmark and seven production sites in Europe and the USA Exclusivity via biological manufacturing processes and knowhow (no patent cliff) Production sites Partnership with Abbott in Russia and South-East Asia Partnership with Torii in Japan Partnership with Seqirus in Australia and New Zealand 3

4 The allergy patient s journey Patients often endure a decade or more before turning to AIT Today ALK engages with less than 1% of people affected by allergic rhinitis Before visiting doctors Identification of allergy may take years Pharmacy First-line Often lasts 5+ years with dose adjustments Doctor Second-line Often lasts years with inadequate symptom control AIT treatment Usually the last resort ~4.7m(<1%) Treated with AIT >500m (100%) Affected by allergic rhinitis 50m (10%) Eligible for AIT treatment 4

5 Financial status DKK million G Revenue 2,569 3,005 2,910 ~2.7 Gross margin 67% 67% 56% R&D expenses (% of revenue) 16% 13% 15% Sales/Marketing & Administrative expenses 1,033 1,140 1,298 EBITDA (50) CAPEX Free cash flow (745) ~(600) Cash and marketable securities revenue drivers Tablet growth Other products and services revenue restraints Price/reimbursement pressure Portfolio rationalisation Supply constaints - 5

6 New strategy Deliver sustainable 10% p.a. revenue growth Raise earnings margins to specialty pharma levels as quickly as possible 1. Succeed in North America with own direct sales organisation 2. Complete the clinical development of the tablet portfolio for all ages and indications 4. Optimise and reallocate resources to focus on the new strategy and achieve efficiencies 3. Build patient engagement and adjacencies to reach remaining 99% of people with allergy 6

7 Key business priorities for 2018 Europe Grow tablet sales Restore production robustness and inventories for legacy products Phase out selected legacy products Submit registration application for tree SLIT-tablet Establish digital platform for patient engagement North America Develop business models for tablets Initiate 5,000 patients on ODACTRA Grow value of legacy products Enrol patients in paediatric asthma trial International markets Grow business in selected focus markets Launch SLIT-tablets in new markets and indications 7

8 2018 revenue outlook Europe Tablet growth Product eliminations and capacity constaints Price and reimbursement pressure Growth in Other products Expected revenue development 2.9bn 2.7bn North America Tablet growth Product eliminations Increasing value of legacy products Int l markets Tablet growth 2017 EU clean-up & price/reimb. Tablets Other products Currencies 2018 E No sales from new adjacent products and services included in the outlook pressure 8

9 2018 outlook DKK 2017A 2018E Comments Revenue 2.9bn ~2.7bn Strong growth in tablet sales offset by product eliminations, supply constraints and price/reimbursement pressure. Negative currency effect of DKK million, based on current exchange rates EBITDA 253m ~(50)m Lower revenue, declining gross margins, full-year effect of build-up in North America, ACARIZAX /ODACTRA launches Free cash flow (745)m ~(600)m Subdued earnings, working capital requirements, including tablet inventories and CAPEX investments 9

10 Forward-looking statements This presentation contains forward-looking statements, including forecasts of future revenue, operating profit and cash flow as well as expected business-related events. Such statements are naturally subject to risks and uncertainties as various factors, some of which are beyond the control of ALK, may cause actual results and performance to differ materially from the forecasts made in this announcement. Without being exhaustive, such factors include e.g., general economic and business-related conditions, including legal issues, uncertainty relating to demand, pricing, reimbursement rules, partners plans and forecasts, fluctuations in exchange rates, competitive factors and reliance on suppliers. Additional factors include the risks associated with the sourcing and manufacturing of ALK s products as well as the potential for side effects from the use of ALK s existing and future products, as allergy immunotherapy may be associated with allergic reactions of differing extents, durations and severities. 10

11 Thank you for your attention Investor Relations: Per Plotnikof Head of Investor Relations Phone: Read more: 11