AltraGen Senior management leadership offsite Day 1: Introduction

Transcription

1 AltraGen Senior management leadership offsite Day 1: Introduction 0

2 AltraGen outsells its competitors because it offers what no one else can a complete product portfolio in pharmaceuticals Why we have thrived Generics Patented AltraGen s two patented drugs in oncology give it a cluster of high-profit products that generate funds unavailable to our competitors in the generics space AltraGen s broad generic drug portfolio opens up otherwise inaccessible customers for cross-sell of its higher-margin patented products Our generic portfolio has enabled us to gain ground while our competitors fight the patent cliff; for example: Business Day: Pharma companies are set to lose more than $267 billion once a raft of patents have expired by original makers are likely to see their profits drop significantly, face stiff competitions from other producers which who could begin to make cheaper, generic versions. 1 Wall Street Journal: AstraZeneca, which is expected to lose patent protection on some 50% of its revenue in the next [four] years 2 Paris-based Sanofi is facing similar headwinds Sanofi announced plans in September to cut 900 jobs by Business Day. Drug patent cliff to drive pharma firms into innovation, research. Chiejina, Alexander. 24 JAN WSJ. Big pharma tries to look past patent cliff. Hodgson, Jessica. 24 Oct,

3 AltraGen is planning a strategic acquisition to diversify into medical devices What we propose to add to the portfolio Generics Pharmaceuticals Share of global market for healthcare products 1, 2, 2008 Patented Medical Device & Diagnostic 2 Healthcare IT 2 Where we propose to break in MD&D market segments, 2008 USD billions Imaging In vitro diagnostics Cardiovascular Orthopedics and spine Other Why this bet Industry-leading portfolio diversity and the cross-sell opportunities it creates is the basis of our unique advantage in the market The Executive Committee (EC) wanted our next acquisition to reinforce that diversity by exploring two potential markets: biosimilar drugs and medical devices After a preliminary conversations with industry analysts, the EC decided to target medical devices, as biosimilars regulatory uncertainty seemed an issue AltraGen is evaluating targets within four segments indicated at the left, to avoid the fragmented ~50% of the market 1 Excluding IV solutions, contact lenses, and life sciences (research) 2 Projections based on 2007 sales and expected CR 3 Prescription and OTC sales Source: Health Research International, Evaluate Pharma 2009, McKinsey 2

4 AltraGen has opened an early-stage acquisition conversation with Marigold Labs in the United Kingdom M Overview Founded in Cambridge in 1889, it offers services in the fields of medical and safety technology. It has approx. 4,000 employees worldwide and is represented in over 190 countries around the globe It has sales and service operations in more than 40 countries. The company has its own development and production facilities in U.K., Sweden, Netherlands, Czech Republic, South Africa, Brazil, U.S., and China Products and solutions portfolio Medical Devices Medical Therapy Devices Medical Monitoring Clinical Consumables and Accessories Safety Devices Service & Training Customers and regions Sales by geography 2012, % Asia Pacific America 18.1 UK Other 43.3 Rest of Europe Around 80% of the revenue of the company is generated outside of the United Kingdoms 3

5 If AltraGen initiated an acquisition today, the following integration could be sequenced in this way Activity HR systems integration Future-state org design Role, performance, and compensation implementation Supply Chain systems integration Inventory integration Delivery and field warehousing harmonization Contracts and payments integration Customer list integration Customer-facing (e.g., sales) SOP harmonization Financial services integration Systems integration Order tracking and processing Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan HR systems Supply chain Contracts and pricing Financial systems 4