7TH EPLS CONFERENCE PRAGUE, SEPTEMBER 23-24, 2014

Transcription

1 7TH EPLS CONFERENCE PRAGUE, SEPTEMBER 23-24, 2014

2 PIERRE FABRE 2

3 2013 KEYS FIGURES PHARMACEUTICALS DERMO-COSMETICS TURNOVER TURNOVER: 910 M ; 45% TURNOVER: 1089 M ; 54% 2008 M 3

4 FOOTPRINT GLOBAL REACH Europe (out of France) BRANCHES on 5 continents 130 COUNTRIES Commercializing Pierre Fabre s products EMPLOYEES 1/3 outside France America 800 Africa 300 Asia * * via Cardinal Health in China 4

5 A PROVEN PARTNERSHIP EXPERTISE Research Partnerships CNRS (Navelbine, Javlor ) Programme IGF-1 Merck Programme C-MET Abbvie F2207, F2695 Forest PD-1 Aurigene Industrial Partnerships Sumitomo, Helsinn, Baxter, Angelini, Serono, Seagen, Biogen Commercial Partnerships Xelevia, Velmetia Merck Oslif, Novartis Inorial, Faes / Menarini Neorecormon, Roche Lercan, Lercapress Recordati Busilvex, Otsuka Medinova, Zambon p 5

6 BUSINESS DEVELOPMENT GOALS For more than 50 years, our group has been open to new ideas and has strongly embraced innovation. Our partners are at the heart of our strategy all around the world. Bertrand Parmentier, CEO The Pierre Fabre Group is particularly geared for innovation in the following fields of activity: Oncology / Hematology Dermatology Women s health OTC Natural health Oral/dental care p 6

7 European Opportunities p 7

8 Europe is dead, long live Europe! Shall we give up on Europe? European Pharma markets are tough and getting tougher Mid-size pharma companies have a limited access to innovation (internal R&D and BD) Grabbing BRIC opportunities turned out to be challenging BUT Europe is certainly not one market Regulated markets are also a high barrier to entry for foreign companies Mid-size companies don t live in exactly the same world as big pharma We see more & more country/region- tailored developments Strictement confidentiel, ne pas faire circuler Page 8

9 Our growth is slowing down 20% 16% 12% 8% 4% 0% e Source: IMS 9 China B.R.I. WORLD Japan USA EU 5

10 Emerging markets benefit mainly to local companies Source: IMS Midas June

11 Self-medication market: a solid business 11

12 OTC is still growing in Europe 12

13 The Bumblebee paradox 13

14 Porter s forces urge us to exit the business Thousands of emerging companies Threat of new entrants Sector consolidation Bargaining power of suppliers Rivalry among competitors Bargaining power of buyers New innovations (Digital health) Threat of substitution Highly regulated markets 14

15 Is size the answer? 15

16 Growth in Europe is sluggish but: Growth in China is difficult to grab Pricing advantage for non-chinese medicine might not last More than 90% of the market is generic products Turkey is no more an attractive market Russia is becoming difficult to operate South America remains a question mark Africa is growing but still a small opportunity According to KPMG annual survey, margins in Europe are higher than China

17 Market access for first grade Sales = Units x Price Driven by reimbursement Driving profit 17

18 Price Potential We are forced to have a global pricing strategy In 18 months, decisions in one country will affect the entire market Each country use its own list of countries and mechanism for price referencing Launch sequence can impact each country price Drug price cuts drive down EU average price UK Germany Drug price cuts drive down EU average Higher Ireland France Italy Spain Inclusion of cheaper drug price in other EU countries drives down EU-5 drug prices Rest of EU Portugal Greece ASMR rating used as internal reference Lower Positive impact on French price Positive impact on Spanish and Italian price Q3/n Q1/n+1 Q2/n+1 Q3/n+1 Note: France References UK, Italy, Spain & Germany if ASMR of the Drug is Between I & III 18

19 Are big and mid-size pharmas worlds apart? The GSK oncology case GSK: N 1 or nothing Celgene, Ariad, Incyte, MerckSerono, DebioPharm? We can create value with a smaller business GSK onco worth $14bn But we need to secure our access to innovation Organizational challenge 19

20 Market Access What a «sell side» partner is looking for? Value creation expertise & core partnering skills Ability to add value to Therapeutic Areas of interest Creativity and flexibility on deal terms Clinical capability Responsiveness during deal negotiation Executive leadership committed to partnering Allows partners to develop and prosper Regulatory capability Sales / marketing capability Global / international reach Pricing, access and reimbursement capability Source: BCG survey of Biotech CEOs and Licensing Executives, 2012; BCG analysis; see appendix 1 for format of survey questionnaire 20

21 Europe is dead, long live Europe! Europe is certainly not one market Intimate knowledge of its complexity is a clear competitive advantage The science of pricing Regulated markets are also a high barrier to entry for foreign companies In particular in Southern Europe where uncertainty is higher Profitable growth can still be capture in European markets (multi) local deal are still happening but it requires perfect execution

22 Global mid (small)-size We may need to make a choice European specialty player

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