FULL-YEAR RESULTS 2020 - ANALYST CALL 3 MARCH 2021, 2:00 PM CET - Vifor Pharma
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
FULL-YEAR RESULTS 2020 SPEAKERS STEFAN SCHULZE COLIN BOND CHIEF EXECUTIVE OFFICER CHIEF FINANCIAL OFFICER 3 MARCH 2021 2
BUSINESS UPDATE AND OUTLOOK STEFAN SCHULZE, CHIEF EXECUTIVE OFFICER
2020 HIGHLIGHTS KEY MILESTONES ACHIEVED ACROSS ALL AREAS AFFIRM-AHF study of Ferinject® positive readout KALM-2 phase-III study of KORSUVATM 1 positive readout CLINICAL TRIALS INNO2VATE phase-III study of vadadustat2 positive readout ACCOLADE phase-II study of avacopan3 readout Recruitment in the phase-II study of VIT-2763 in beta-thalassemia started Ferinject® launched in Japan China: Ferinject® and Veltassa® partnered & NDA submission accepted for Ferinject® MARKET ACCESS Avacopan3 filing accepted for review in Europe KORSUVATM 1 filed in the US In-licensing agreement with Cara Therapeutics for KORSUVATM 1 extended BUSINESS Worldwide rights4 of ANG-3777 licensed from Angion Biomedica DEVELOPMENT Divestment of OM Pharma strengthens focus on key therapeutic areas 1) Licensed from Cara Therapeutics, Inc. 2) Licensed from Akebia Therapeutics, Inc., subject to certain conditions and limited to the US dialysis market 3) Licensed from ChemoCentryx, Inc. 4) Excluding China, Taiwan, Hong Kong and Macau; for all nephrology indications and congestive heart-failure 3 MARCH 2021 4
2020 HIGHLIGHTS STRONG FINANCIAL PERFORMANCE DESPITE COVID-19 NET SALES CHF 1’705.6 million, -1.1% or +3.7% at constant exchange rates (CER) CHF 575.8 million, +18.7% or +29.4% at CER, and +35.7% on a EBITDA comparable basis1 CORE EARNINGS PER SHARE CHF 4.99, +28.7% vs. prior year NET CASH POSITION CHF 190.6 million EQUITY RATIO 77.1% 1) At CER and excluding the IAS 19 impact 3 MARCH 2021 5
STRATEGIC FOCUS THREE KEY AREAS AS BASIS FOR FUTURE GROWTH 1 Iron Deficiency 2 Nephrology 3 Cardio-Renal 3 MARCH 2021 6
IRON DEFICIENCY – MARKET OVERVIEW DRIVING OVERALL MARKET GROWTH 2014 2017 2020 36% 1’924 2’633 43% 3’392 46% CHFm 57% CHFm 54% CHFm 64% Ferinject®/Injectafer®, Venofer® and Maltofer® Source: quarterly IQVIATM MIDAS® panel, GERS, Insight Health, DLI, moving annual total Q4-2020. Average 2020 exchange rates have been applied 3 MARCH 2021 7
FERINJECT®/INJECTAFER® SIGNIFICANT GROWTH IMPACT BY COVID-19 PANDEMIC NET SALES CHF million 561 552 Net sales increased by 3% at constant -2% exchange rates 90 99 20% growth target missed due to impacts by 151 138 COVID-19 pandemic: − Reduced physician office visits − Temporary closure of administration sites 320 315 − Delay of elective surgeries 2019 2020 Europe US RoW 3 MARCH 2021 8
FERINJECT®/INJECTAFER® STRONG REBOUND AFTER DECREASE IN RESTRICTIONS NET SALES EVOLUTION In CHF million, % at CER Q1: Growth compared to prior period 180 in line with expectations -26% -2% +26% +16% Q2: Heavily impacted by COVID-19 150 measures during first wave 120 Q3: Immediate and strong return to pre-COVID 19 growth with easing 90 restrictions in most countries Q4: 2nd wave less impactful with 60 better prepared healthcare system 30 Conclusion: Ferinject®/Injectafer® expected to 0 be back to pre-COVID-19 growth Q1 Q2 Q3 Q4 with easing lockdown measures 2019 2020 CER = constant exchange rates 3 MARCH 2021 9
STRATEGIC FOCUS THREE KEY AREAS AS BASIS FOR FUTURE GROWTH 1 Iron Deficiency 2 Nephrology 3 Cardio-Renal 3 MARCH 2021 10
NEPHROLOGY STRONG RESILIENCE IN ANEMIA MANAGEMENT ESA PORTFOLIO NET SALES VENOFER® NET SALES CHF million CHF million 540 524 -3% 132 136 +3% 2019 2020 2019 2020 Mircera® 1 Retacrit® 2 ESA portfolio growth of 3% at CER, driven by overall demand Strong growth of +8% at CER for Retacrit® Net sales growth driven by higher demand in US and China Mircera® growth impacted by phasing of orders CER = constant exchange rates 1) Licensed from F. Hoffmann-La Roche AG 2) Licensed from Pfizer Inc. 3 MARCH 2021 11
NEPHROLOGY VELPHORO® IMPACTED BY ORDER PATTERNS VELPHORO® NET SALES CHF million 182 178 -2% Net sales increased by 4% at CER Strong in-market sales growth of 25% Global leader with in-market sales of CHF 439 million or 29% market share1 Protected by various Orange Book listed patents expiring between Nov. 2028 and Nov. 2034 2019 2020 CER = constant exchange rates 1) Monthly IQVIATM MIDAS® panel, INSIGHT Health & DN, GERS, DLI, Farminform, moving annual total Q4-2020. Average 2020 exchange rates have been applied. 3 MARCH 2021 12
NEPHROLOGY – ANG 3777 EXPANDING THE PIPELINE IN NEPHROLOGY First small molecule Global rights2 hepatocyte growth factor mimetic in DGF and CSA-AKI ANG-37771 ~110k patients with CSA-AKI ~26k patients with DGF US, UK and EU4 combined US, UK and EU4 combined Phase-II study in CSA-AKI Phase-III study in DGF read out in H2 2021 read out in end of 2021 DGF = Delayed graft function CSA-AKI = Cardiac surgery associated acute kidney injury 1) Licensed from Angion Biomedica Corp. 2) Excluding China, Taiwan, Hong Kong and Macau 3 MARCH 2021 13
NEPHROLOGY LEADERSHIP OF THE WHOLE NEPHROLOGY CHAIN PRE-CLINICAL CLINICAL / PRE-COMMERCIAL PARTNERSHIP IN-LICENSING DEALS AND PARTNERSHIPS Avacopan1 Rayaldee®2 DATA GENERATION NephThera CR8453 Vadadustat4 COMMERCIAL PRE-DIALYSIS DIALYSIS TRANSPLANTATION 7 5 6 ANG-37778 1) Licensed from ChemoCentryx, Inc. 2) Licensed from OPKO Health, Inc. 3) Licensed from Cara Therapeutics, Inc. 4) Licensed from Akebia Therapeutics, Inc., subject to certain conditions and limited to the US dialysis market 5) Joint commercialization agreement with Janssen Pharmaceuticals Inc. 6) Licensed from Pfizer Inc. 7) Licensed from F. Hoffmann-La Roche AG 8) Licensed from Angion Biomedica Corp.; excluding China, Taiwan, Hong Kong and Macau 3 MARCH 2021 14
STRATEGIC FOCUS THREE KEY AREAS AS BASIS FOR FUTURE GROWTH 1 Iron Deficiency 2 Nephrology 3 Cardio-Renal 3 MARCH 2021 15
CARDIO-RENAL – FERINJECT® AFFIRM-AHF STUDY SHOWED STRONG CLINICAL BENEFITS TOTAL HEART FAILURE HOSPITALISATION 100 Rate ratio (95% CI): 0.74 (0.58–0.94); p=0.013 Mean cumulative events per 100 patients 26% reduction in heart failure 80 re-hospitalization 60 Reduction irrespective of anemia status Strengthening of ESC guideline expected 40 in 2021 Market opportunity in heart failure of 20 > CHF 500m in Europe and 0 0 4 8 12 16 20 24 28 32 36 40 44 48 52 > CHF 1bn in the US Time since randomization (weeks) Ferinject® Placebo 3 MARCH 2021 16
CARDIO-RENAL – VELTASSA® ADDRESS KEY DEMAND DRIVERS TO RESUME GROWTH NET SALES CHF million Demand mainly impacted by reduced nephrology 132 office visits due to COVID-19 restrictions -11% 118 In 2021, further differentiate the clinical benefits of Veltassa® and improve formulary coverage PLATINUM study initiated in 2020 to evaluate benefit of Veltassa® use in the emergency setting 2019 2020 US Europe 3 MARCH 2021 17
CARDIO-RENAL – VELTASSA® SIGNIFICANT OPPORTUNITY WITH EXISTING PRESCRIBERS IN-MARKET SALES – WORLDWIDE KEY CHARACTERISTICS 2015 2020 Calcium-based, non-absorbed 52-weeks data available Acute & chronic usage 38% 40% KEY FOCUS 172 431 CHFm CHFm Build awareness Establish clinical differentiation Improve pull-through 22% DIAMOND study is significant growth accelerator and “differentiator” Veltassa® Sodium zirconium cyclosilicate Other potassium binders Source: monthly IQVIATM MIDAS® panel, GERS, InsightHealth, DLI, moving annual total Q4-2020. Average 2020 exchange rates have been applied. 3 MARCH 2021 18
OUTLOOK 2021 Ferinject® approval in China KorsuvaTM 1 approval in the US and filing in Europe MARKET ACCESS Avacopan2 approval in Europe and Japan Avacopan2 & KorsuvaTM 1 partnering in China Vadadustat3 filing in the US by our partner Akebia Therapeutics by mid-Q2 2021 VIT-2763 phase-II initiation in sickle cell disease in H1 2021 VIT-2763 phase-II recruitment completion in beta thalassemia in H2 2021 CLINICAL TRIALS ANG-37774 phase-II readout in CSA-AKI in H2 2021 ANG-37774 phase-III readout in DGF in Q4 2021 BD&L At least two in-licensing deals, product acquisitions or corporate transactions 1) Licensed from Cara Therapeutics, Inc. 2) Licensed from ChemoCentryx, Inc. 3) Licensed from Akebia Therapeutics, Inc., subject to certain conditions and limited to the US dialysis market 4) Licensed from Angion Biomedica Corp. 3 MARCH 2021 19
FINANCIAL PERFORMANCE AND GUIDANCE COLIN BOND, CHIEF FINANCIAL OFFICER
2020 PERFORMANCE OVERALL PORTFOLIO RESILIENT Net sales growth at constant exchange rates Venofer® 8.4% Maltofer® 7.8% Velphoro® 3.6% Ferinject®/Injectafer® 3.0% Mircera®/Retacrit® 2.5% Veltassa® -5.1% Net sales 3.7% -10% -5% 0% 5% 10% 3 MARCH 2021 21
P&L OVERVIEW (IN CHF MILLION) EBITDA GROWTH OF 35.7% ON A COMPARABLE BASIS FY FY %∆ vs. 2019 1 2020 2019 Other income increase driven by Net Sales 1’725.0 1’705.6 -1.1% partnering activities for Ferinject®, Other Income 37.0 96.4 +160.5% Veltassa® and Velphoro® as well as Gross Profit 1’061.2 1’100.8 +3.7% disposal of non-core products EBITDA 485.0 575.8 +18.7% EBITDA growth of +35.7% on a Depreciation and amortization -209.1 -284.4 -36.0% comparable basis driven by cost EBIT 275.9 291.4 +5.6% containment measures Profit from continuing operations 222.8 237.6 6.6% Profit from discontinued operations 50.9 220.9 334.0% Depreciation and amortization Net profit before NCI 273.8 458.6 67.5% driven by CCX140 impairment of Non-controlling interests -114.7 -98.9 13.8% CHF 56.2 million (H1 2020) Net profit after NCI 159.1 359.6 126.0% 2 Profit from discontinued operations Core EPS from continuing operations 3.88 4.99 +28.7% due to disposal of OM Pharma in September 2020 NCI = non-controlling interests EPS = earnings per share 1) Restated 2) Reported earnings after non-controlling interests adjusted for proportionate amortization and impairment of intangible assets of CHF 185.0 million in 2020 (2019: CHF 143.5 million) 3 MARCH 2021 22
BALANCE SHEET OVERVIEW (IN CHF MILLION) STRONG EQUITY RATIO OF 77.1% 31 Dec 31 Dec Change vs. 2019 1 2020 2019 Cash & cash equivalents increase Cash & cash equivalents 544.9 730.0 185.1 driven by OM Pharma divestment, Trade & other receivables 471.9 487.7 15.8 partly offset by BD&L4 investments Inventories 348.6 339.8 (8.8) and dividend distributions Financial investments & other assets 633.5 896.8 263.3 2 3 PPE & RoU assets 351.0 302.8 (48.2) Financial investments increase Intangible assets 2’584.5 2’454.5 (130.0) mainly driven by gain on Assets 4’934.4 5’211.7 277.3 ChemoCentryx equity stake Current financial & lease liabilities 17.8 23.0 5.2 Intangible assets decrease mainly Other current liabilities 523.6 521.0 (2.6) driven by OM Pharma divestment Non-current financial & lease liabilities 626.5 608.6 (17.9) and CCX140 impairment, partly Other non-current liabilities 31.3 41.5 10.2 Shareholders' equity 3’735.3 4’017.6 282.3 offset by purchase of a priority Liabilities & shareholders' equity 4’934.4 5’211.7 277.3 review voucher for CHF 107.7 million 1) Balance sheet as of 31 December 2019 not restated 2) Property, plant & equipment 3) Right-of-use 4) Business development and licensing 3 MARCH 2021 23
CASH FLOW OVERVIEW (IN CHF MILLION) NET CASH POSITION OF CHF 190.6 MILLION 2020 Opening cash & cash equivalents, 1 January 544.9 Net working capital increase due to phasing Operating activities 549.1 of payment from major customers and Net working capital (127.2) planned increase in inventory Interest, tax & other financial payments (19.3) Operating cash flow from discontinued operations 21.2 Milestone and BD&L1 investments driven by Cash flow from operating activities 423.8 extension of the agreement with Cara Milestones & BD&L1 investments (256.0) Therapeutics, licensing of ANG-3777 and Capex & others (70.0) acquisition of a priority review voucher Net proceeds from OM Pharma divestment 378.4 Cash flow from investing activities 52.4 Investments more than offset by net Dividends paid (219.6) proceeds from the OM Pharma divestment Financing & others (48.7) of CHF 378.4 million Cash flow from financing activities (268.4) Dividend payments of CHF 129.6 million to Exchange rate effects (22.7) Vifor Pharma shareholders and CHF 90.0 Ending cash & cash equivalents, 31 December 730.0 million to Fresenius Medical Care Financial liabilities2 (539.5) Net debt 190.6 1) Business development and licensing 2) Excluding non-interest bearing financial liabilities and lease liabilities 3 MARCH 2021 24
GUIDANCE 20211 In 2021, at constant exchange rates, net sales are expected to grow at a low-to-mid single digit rate, and EBITDA to grow at a high single digit rate. 1) The COVID-19 pandemic continues to impact economic conditions and patient access to our treatments; therefore Vifor Pharma’s 2021 guidance assumes a progressive improvement of patients access to the Company’s treatments as of H2 2021 3 MARCH 2021 25
DISCLAIMER Certain statements, beliefs and opinions in this presentation are forward-looking, which reflect the Company’s or, as appropriate, the Company’s directors’ current expectations and projections about future events. By their nature, forward- looking statements involve a number of risks, uncertainties and assumptions that could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements. These risks, uncertainties and assumptions could adversely affect the outcome and financial effects of the plans and events described herein. A multitude of factors including, but not limited to, changes in demand, competition and technology, can cause actual events, performance or results to differ significantly from any anticipated development. Forward-looking statements contained in this presentation regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. As a result, the Company expressly disclaims any obligation or undertaking to release any update or revisions to any forward-looking statements in this presentation as a result of any change in expectations or any change in events, conditions, assumptions or circumstances on which these forward-looking statements are based. Neither the Company nor its advisers or representatives nor any of its of their parent or subsidiary undertakings or any such person’s officers or employees guarantees that the assumptions underlying such forward-looking statements are free from errors nor does either accept any responsibility for the future accuracy of the forward-looking statements contained in this presentation or the actual occurrence of the forecasted developments. You should not place undue reliance on forward-looking statements, which speak only as of the date of this presentation. 3 MARCH 2021 26
You can also read