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Financial Results - Business Update Q1 2020 - English
Financial Results - Business Update Q1 2020 - English
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2. Financial Review
Financial Results & Business Update
3. Closing Remarks
Peter Guenter, CEO
Q1 2020 Highlights
4
Almirall responds to Covid-19
Taking on our social responsibility to support healthcare workers, local communities and
Governments:
• In Spain we are donating protective clinical equipment (masks, gloves, coats, etc.)
• Collaborating with the Leitat Foundation for the production of 3D printed respirators
3 • In Germany we have produced sanitizing gel and distributed in hospitals and clinics
• Providing Blastoactiva and Balneum topical creams to hospitals to help professionals
reduce dry and damaged skin caused by masks, repeated handwashing and the use of
sanitizers in several countries
Good business performance with double-digit growth in EBITDA: Total Revenues €247.3 MM
1 +7%, Net Sales €241.3 MM +8% and EBITDA €88.3 MM +10%. Temporary positives outweigh
AczoneTM genericization
8
Ilumetri®
Accelerating number of new patients month after month
Adding new patients at a fast pace Ilumetri® cumulative number of patients by month in Germany
since launch1
Adding number of new patients at a fast pace, pre Covid-19
1.585
impact1 1.468
1. © IQVIA IMS® LRx Germany, February 2020. No personal data but exclusively anonymous information used (according to European data protection laws).
2. Schett, G., Sticherling, M. & Neurath, M.F. COVID-19: risk for cytokine targeting in chronic inflammatory diseases?. Nat Rev Immunol (2020). https://doi.org/10.1038/s41577-020-0312-7.
3. Crowley JJ, Warren RB, Cather JC. Safety of selective IL-23p19 inhibitors for the treatment of psoriasis. J Eur Acad Dermatol Venereol. 2019;33(9):1676-84.
4. Reich K, Warren RB, Iversen L, et al. Long-term efficacy and safety of tildrakizumab for moderate-to-severe psoriasis: pooled analyses of two randomized phase III clinical trials (reSURFACE 1 and reSURFACE 2) through 148 weeks. Br J
Dermatol. 2019.
5. ILUMETRI® Summary of Product Characteristics. Almirall, July 2019.
6. Crowley J, Korman N, Spelman L, et al. Efficacy and Safety of Long-Term Tildrakizumab for Plaque Psoriasis: 4-Year Results from reSURFACE 1. Presented at 28th European Academy of Dermatology and Venerology (EADV) Congress;
October 9–13; Madrid, Spain. 2019.
7. Cather JC, Nardone B, Parno J, et al. Rates of malignancies through 5 years of tildrakizumab exposure in reSURFACE 1 and reSURFACE 2. Presented at 28th European Academy of Dermatology and Venerology (EADV) 9-13 October2019;
Madrid, Spain.
8. Source: Technology appraisal guidance [TA575] Published date: 17 April 2019.
IL-23 class continues to grow capturing 30% of all new patients** emerging as the winning class in psoriasis
Patient numbers have accelerated in recent months, having already achieved good patient penetration in 2019 in
the dynamic segment of biologics market**
27% 26%
36% IL-17
41% Tremfya
IL-12/23
Ilumetri
IL-23
Skyrizi
TNF
32% 30% 7%
High market share achieved in The Netherlands, but compounding of DMF has stalled our growth
Legal proceedings underway in The Netherlands to tackle the issue of DMF compounding
As previously guided, expect a more gradual increase moving forward as DMF-naive countries require more time
and education to achieve market penetration
Net Sales € MM
9
8 8 8 8
7
4 4
3
2
1
Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020
Overall US OAB market has declined during Covid-19, but SeysaraTM maintains market share
Expect to regain market share from the new bottom once the Covid-19 crisis starts to normalise
4%
3.000
3%
2.000
2%
TRx showing signs
1.000 of stabilisation, post
1%
Covid-19 impact
0 0%
13
Q1 2020 Results: Good start to the year
Highlights
• Total Revenues and Net Sales growing at +7% and +8% respectively, driven by Growth
Drivers, Wholesaler stocking and a positive impact in Deferred Income, more than offsetting
AczoneTM genericization
• Positive effect on Sales from Wholesaler Stocking, seen in March particularly in Europe,
ahead of lockdown measures related to Covid-19
• Gross Margin c. 71% (-240 bps vs. 2019) as expected relating to the genericization of
AczoneTM
• SG&A excluding depreciation was flat at €71 MM as increased new product investments
were offset by lower promotion activity in late March due to Covid-19 situation
• Strong operating leverage with EBITDA at €88.3 MM, growing by +10% (vs. 2019),
despite important investment in commercial operations to support our launches
YTD March YTD March % var % var Net Sales boosted by performance
€ Million of growth products in Europe,
2020 2019 LY CER LY
Wholesaler Stocking and positive
Total Revenues 247.3 232.2 6.5% 6.1% impact in Deferred Income offset by
AczoneTM genericization
Net Sales 241.3 224.4 7.5% 7.0%
Other Income 6.0 7.8 (23.1%) (21.8%)
Cost of Goods (70.5) (60.2) 17.1% 17.1%
Gross Profit 170.8 164.2 4.0% 3.3% Gross margin decrease driven by
the genericization of AczoneTM
% of sales 70.8% 73.2%
R&D (21.3) (21.7) (1.8%) (3.2%)
R&D spend flat due to lower Phase
% of sales (8.8%) (9.7%)
IV studies, impacted by Covid-19
SG&A (98.2) (99.6) (1.4%) (2.1%)
% of sales (40.7%) (44.4%)
SG&A w/o Depreciation &
(71.3) (71.0) 0.4% (0.1%)
Amortization
% of sales (29.5%) (31.6%)
Depreciation & Amortization (26.9) (28.6) (5.9%) (7.0%)
Other Op. Exp 0.2 (3.1) (106.5%) (106.5%)
EBITDA 88.3 80.2 10.1% 9.7%
Increase EBITDA mainly driven by
% of sales 36.6% 35.7% increase in Net Sales and lower
spend on sales & marketing due to
Covid-19
March December
Net Debt Position Var.
2020 2019 Good liquidity and leverage at 1.5x
Cash and cash equivalents: (91.9) (117.4) 25.5 Net Debt/EBITDA* with no immediate
debt repayments (Convertible Bond
Financial debt: 477.6 493.0 (15.4) end of 2021)
Pension plans: 79.3 79.4 (0.1)
Net Debt / (Cash) 465.0 455.0 10.0 * EBITDA 12-month trailing until March 2020 (3 months of 2020 & 9 months of 2019).
19
Conclusions
21
Late stage pipeline Significant mid-term value
Focus on Innovation and Science to unlock mid-term potential
Under
Indication Commercial name Expected Launch Phase I Phase II Phase III Geography
registration
US Q1 2021
Actinic keratosis Tirbanibulin
Europe Q2 2021
Atopic dermatitis Lebrikizumab 2023
LEGACY PIPELINE
Onychomycosis Terbinafine
Expected Peak Sales of late stage pipeline & recent launches > €1Bn**
Minimal Covid-19 impact expected to the late stage pipeline
Tirbanibulin in registration with US and European regulatory agencies (FDA & EMA) which continue
with regulatory reviews and we therefore do not anticipate any delays to launch
Lebrikizumab phase 3 continues although new patient enrolment has been temporarily paused by our
partner Eli Lilly
* Subject to option exercised.
** Not including BNZ01 nor Sarecycline China.
Skilarence 8 8 (1.3%)
Solaraze 6 7 (15.3%)
Ilumetri 9 3 197.7%
Others 16 17 (5.9%)
US 25 49 (49.3%)
RoW 2 2 (23.7%)