Third Quarter of FY2012 (March 2013) Earnings Results. Akihito Sakai, Managing Director Taisho Pharmaceutical Holdings January 31, 2013

Transcription

1 Third Quarter of FY2012 (March 2013) Earnings Results Akihito Sakai, Managing Director Taisho Pharmaceutical Holdings January 31, 2013

2 Results for the 3rd Quarter of FY2012 (Yen B) FY2011 3Q(4-12) FY2012 3Q(4-12) YOY change Net sales % Self-Medication % Rx Pharmaceutical % Operating income % Ordinary income % Net income % Note: Fractions of 1 billion are rounded down. Changes are calculated in millions of yen. 1

3 Overview of FY2012 3rd Quarter Results (1) Self-Medication Operation Group (Taisho, Japan) -Trends up through the 2nd quarter continue Sales trend in major brands (YOY change) : Lipovitan series (down 4.0%): Lipovitan D (down 5.8%) Sales of other products in the series were flat Pabron series (up 2.0%): General cold remedies performed well RiUP series (down 2.0%): Lower sales of existing product (1%-minoxidil hair regrowth treatment) Livita series (up 24.3%): New products contributed to sales increase <For reference: Market conditions> OTC drugs market FY2012 3Q(Apr.- Dec.): contracted 2.6% YOY (INTAGE SDI data on a value basis) 2

4 3Q of FY2012: Sales of Leading Brands (Yen B) FY2011 3Q(4-12) FY2012 3Q(4-12) YOY change Lipovitan series % Pabron series % RiUP series % GI drugs series % NARON series % Livita series % Colac series % Note: Fractions of 1 billion are rounded down. Changes are calculated in millions of yen. 3

5 Size of OTC Drugs Market by Drug Category Breakdown of domestic OTC drugs market *Excludes unclassifiable drugs (FY ) (FY ) 4.3% Excludes quasi drugs 4.2% Category 1 95% YOY 28.1% 25.6% 29.5% 26.4% * 709.9bn 42.1% 98% YOY Category 1 Designated Category 2 Category 2 Category 3 * 692.8bn 39.9% (INTAGE SDI data as of January 2013 on a value basis, totals for the Apr.-Dec. period of each year) 4

6 Taisho s Sales Breakdown by Drug Category FY FY Category1 96% YOY 2.5% 2.8% 32.2% 52.5bn 20.5% Excludes quasi drugs 31.8% 52.2bn 20.4% 44.5% 99.3% YOY Category 1 Designated Category 2 Category 2 Category % 5

7 Overview of FY2012 3rd Quarter Results (2) Overseas OTC Drug Business Sales FY2011 3Q(4-12) FY2012 3Q(4-12) (Yen B) YOY change Overseas OTC drugs Portion from BMS Hoe Mexican companies including CICSA Other Note: Fractions of 1 billion are rounded down. Changes are calculated in millions of yen. Portion from BMS: Sales performed steadily according to plan in mainly Thailand and Indonesia Hoe: Full-term contribution to sales from this fiscal year 4 companies including CICSA: Contribution to sales from this 3rd quarter 6

8 Overview of FY2012 3rd Quarter Results (3) Prescription Pharmaceutical Operation Group Taisho Toyama Pharmaceutical: Net sales: 77.2 billion (up 7.0% YOY) Infectious disease field: ZOSYN and OZEX sales remained strong Clarith sales were lower due mainly to NHI drug price revisions Taisho Toyama s share of the antibacterial agent market*: 20% (*J01 antibacterial agent market) Inflammatory and immunologic disease field: Growth of Edirol sales due to lifting of a restriction on the prescription period <For reference: Market conditions> The prescription pharmaceutical market expanded by 0.2% YOY The market for antibacterial agents Taisho s core market shrank by 5.8% overall (Oral: down 5.4%, Injection: down 6.4%) ( 2013 IMS JAPAN. All rights reserved. Source: IMS JPM 2011 and 2012 (Apr.-Dec.), reprinted with permission) 7

9 Taisho Toyama: Sales of Leading Products for 3Q of FY2012 FY2011 3Q(4-12) FY2012 3Q(4-12) YOY change (Yen B) Clarith % ZOSYN % Palux % OZEX % Geninax % Lorcam % EDIROL % Note: Fractions of 1 billion are rounded down. Changes are calculated in millions of yen. 8

10 Factors Affecting FY2012 3rd Quarter Net Sales and Profits (Year-on-Year change) Net sales (up 9.1bn) Self-Medication (up 2.8bn) Rx Pharmaceutical (up 6.2bn) Operating income (down 4.1bn) Gross profit* : up 2.2bn (Gross margin* : FY11 3Q: 63.8% FY12 3Q: 62.1%) SG&A expenses up 6.3bn R&D expenses down 0.7bn Advertising expenses up 0bn Sales promotion expenses up 1.3bn Personnel expenses up 1.7bn Other up 4.0bn (IT-related expenses, etc.) Non-operating items: Equity method income of 1.4bn (FY11 3Q: income of 1.0bn) Extraordinary losses: Evaluation loss on investment securities of 2.2bn *After provision/reversal of reserve for returned unsold goods Note: Fractions of 1 billion are rounded down. Changes are calculated in millions of yen. 9

11 FY2012 Full-year Forecasts (Yen B) Full-year E (New) YOY change Full-year E (Previous) Vs. Previous E Net sales % Self-Medication % Rx Pharmaceutical % Operating income % Ordinary income % Net income % EPS (Yen) Taisho Toyama % E: Estimates Note: Fractions of 1 billion are rounded down. Changes are calculated in millions of yen. 10

12 FY2012: Sales Forecasts (Yen B) FY2012 E (Previous) FY2012 E (New) Vs. previous E Breakdown Sales SM Taisho (Japan): -4.5 Rx Taisho Toyama: +3.0 Note: Fractions of 1 billion are rounded down. Self-Medication Operation Group Sales forecast for Taisho (Japan) revised down 4.5bn Lipovitan series revised down 2.6bn RiUP series revised down 0.7bn Prescription Pharmaceutical Operation Group Sales forecast for Taisho Toyama revised up 3.0bn 11

13 FY2012: Forecasts for Leading Brands/Products FY2012 E (New) YOY change (Yen B) FY2012 E (Previous) Lipovitan series % 69.0 Pabron series % 26.0 RiUP series % 14.8 GI drugs series % 4.4 NARON series % 4.2 Livita series % 5.0 Colac series % 4.0 Clarith % 19.5 ZOSYN % 21.0 Palux % 8.8 OZEX % 7.5 Geninax EDIROL % 7.0 Note: Fractions of 1 billion are rounded down. Changes are calculated in millions of yen. 12

14 FY2012 Full-year Sales Forecasts: Overseas OTC Drug Business (Yen B) FY2011 FY2012 E (Previous) FY2012 E (New) YOY change Overseas OTC drugs Portion from BMS Hoe Mexican companies including CICSA Other Note: Fractions of 1 billion are rounded down. Changes are calculated in millions of yen. The portion from BMS is growing steadily according to plan Hoe began contributing to results on a full-year basis from the current fiscal year Sales forecasts were revised for the 4 consolidated companies including CICSA and the integration of Osotspa 13

15 Factors Affecting FY2012 Full-year Net Sales and Profits (Year-on-Year change) Net sales (up 14.3bn) Self-Medication (up 5.3bn) Rx Pharmaceutical (up 8.9bn) Operating income (down 2.9bn) Gross profit* : up 4.4bn (Gross margin*: FY11: 63.5% FY12: 61.9%) SG&A expenses up 7.3bn R&D expenses down 0.3bn Sales promotion expenses up 1.1bn Advertising expenses up 1.0bn Personnel expenses up 2.2bn Other up 3.4bn (IT-related expenses, etc.) Non-operating items: Equity method income of 1.2bn (FY11: income of 1.2bn) *After provision/reversal of reserve for returned unsold goods Note: Fractions of 1 billion are rounded down. Changes are calculated in millions of yen. 14

16 Self-Medication Business: New Products Epadel T approved December 28, 2012 <Main new products in FY2012> <1st half> Fatcare Stick Café Middlecare Granules (stick-type packaging) Lipovitan D kids and others <2nd half> Pabron Sinus Drops Quick RiUP JET Colac First NARON Medical and others (Italics: New products that have already been launched or announced) 15

17 Prescription Pharmaceuticals: New Drug Pipeline (1) Taisho: Development in Japan (As of January 31, 2013) Description Application Filed for Application Development with Originator CT-064* Antiresorptive bisphosphonate Chugai Roche (Injection) Osteoporosis Clarith Tables 200 (Oral) Helicobacter pyroli (H. pyroli) gastritis; H. pyroli eradication by concomitant therapy with proton pump inhibitors and amoxicillin hydrate (Additional indication) ABBOTT JAPAN and others (co-development by 9 companies) Taisho Phase 3 TS-071** SGLT2 inhibitor In-house Taisho (Oral) Type 2 diabetes CT-064* Antiresorptive bisphosphonate Chugai Roche (Oral) Osteoporosis *CT-064: Generic name: Ibandronate Sodium Hydrate, Chugai Pharmaceutical development code: RG484 **TS-071: Generic name: Luseogliflozin Hydrate 16

18 Prescription Pharmaceuticals: New Drug Pipeline (2) Taisho: Development in Japan (continued) (As of January 31, 2013) Description Application Phase 3 (continued) Development with Originator TT-063 (Topical) Anti-inflammatory analgesic patch formulation containing S-flurbiprofen Osteoarthritis, scapulohumeral periarthritis, myalgia and other conditions TOKUHON TOKUHON Phase 2 NT-702 (Oral) Bronchodilatation and inhibition of cellular infiltration Asthma Nissan Chemical Nissan Chemical NT-702 (Oral) Vasodilation as well as platelet aggregate inhibition Intermittent claudication caused by arteriosclerosis obliterans Nissan Chemical Nissan Chemical Palux (Injection) Prostaglandin E1 preparation Intermittent claudication caused by spinal canal stenosis (additional indication) In-house Taisho/ Mitsubishi Tanabe 17

19 Trends in R&D Expenses FY2012 3Q cumulative result: 16.7bn (down 0.7bn YOY) FY2012 full-year forecast: Revised down from 25.2bn to 23.9bn (down 0.3bn YOY) (Yen B) Self-Medication Rx Pharmaceutical E (Fiscal year) 18

20 Alliance with TOKUHON Start marketing anti-inflammatory analgesic patches containing flurbiprofen Prescription pharmaceutical anti-inflammatory analgesic patches YAKUBAN TAPE STAYBAN PAP FULRUBAN PAP Marketing to begin with Taisho Toyama on April 1 TOKUHON will sign a new contract with Taisho Toyama after terminating its marketing consignment contracts with Mitsubishi Tanabe Pharma and Yutoku Pharmaceutical Ind. Enhance Taisho Toyama s lineup in the inflammatory and immunologic diseases field Alliance of Taisho Toyama and TOKUHON for maximizing sales 19