JPM Healthcare Conf Handout
JPM Healthcare Conf Handout
JPM Healthcare Conf Handout
Important Information
This presentation may contain forward-looking statements which are based on current assumptions and forecasts made by Bayer Group management. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. These factors include those discussed in our public reports which are available on our website. The company assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments.
Bayer Embarked on Diversification in HealthCare Long Before it Became the New Industry Paradigm
The New Healthcare Industry Paradigm
Diversification
Generics
Vaccines
Focus in R&D
Emerging Markets
Biobetters / Biosimilars
Personalized Medicine
Back in 2004, only few of Bayers peers followed a diversified healthcare strategy In 2009, this strategy is followed by almost every major pharma company
Bayer Investor Presentation J.P. Morgan Healthcare Conference 2010 Page 1
Exiting the U.S. primary care market Acquisition of Schering AG Maxy VII, oncology pipeline assets, Direvo Biotech
TopSun, Sagmel to strengthen presence in China and Eastern Europe Biotons SciLin insulin in China R&D-center in China
Riociguat (pulmonary hypertension) VEGF Trap-Eye (eye diseases) Possis Medical (thrombectomy devices)
Pharmaceuticals
Global #6 in specialty pharmaceuticals Leading positions in key therapeutic areas Underweight in US, overweight in emerging markets Transformational late-stage pipeline
Consumer Care
Global #2, outpaced market growth in 11 out of last 13 years
Medical Care
#3 in blood glucose monitoring Market leader in fluid injection systems for diagnostic imaging
27%
Animal Health
Global # 3/5 in companion animal and in livestock farming
uEBIT: underlying EBIT : underlying EBITDA-margin
2004
2008
Bayer HealthCare is Already Among the Most Diversified Healthcare Companies in the World
Percent of total sales
21 47 35 34
16
14
12
Non-Pharma
64 92 94
84 79 53 65 66
86
88
Pharma
36
J&J
Abbott
BHC
GSK
Merck/ SGP
Lilly
AstraZeneca
Earnings
Underlying EBITDA 1,141 1,018 Underlying EBIT +12% 786 +12%
1,388 2,548
700
765
+9%
703 444
475 311
+7% +20%
318
HealthCare 3,936m; +4% (+4%)
( ) Currency & portfolio adjusted
Bayer Investor Presentation J.P. Morgan Healthcare Conference 2010 Page 5
376
+18%
259
Q308 Q309
Q308 Q309
Exciting Pharma-Pipeline
Strong foundation of an emerging oncology franchise Dual-targeted mechanism antiangiogenic and antiproliferative Approved for kidney cancer (RCC) and for liver cancer (HCC) - only approved drug with overall survival benefit in HCC Peak sales potential in RCC and HCC combined ~EUR 750 million Exploring potential in additional cancer indications Exciting late-stage oncology pipeline assets beyond Nexavar
FY2006 130m
FY2007 270m
FY2008 462m
9M09 445m
Betaseron
Longest studied multiple sclerosis therapy with more than 17 years of clinical experience
Attractive biological pipeline assets Early pipeline and technology base strengthened
Powerful brands Global #2 Strong regional footprint Proven track record of marketing excellence
Historic average market growth corridor Bayer Consumer Care growth rate
*) Fx and portfolio adjusted
Strong Brands that can Deliver Above Market Growth in Attractive Consumer Health Segments
Market Segment Market Growth** Selected Bayer Brands
Gastrointestinals
3-4%
5-6% 3-4%
13 Consumer Health brands with annual sales of more than Eur100m each*
Bayer Investor Presentation J.P. Morgan Healthcare Conference 2010 Page 12
*) FY 2008
**) CAGR08-13e
Pharmemerging Markets
E7 pharmemerging markets of Brazil, Russia, India, China, Mexico, South Korea, Turkey E7 pharma market growth of 13-16% CAGR08-13 expected Chinas pharma market should continue to grow at a 20+% p.a. Growth drivers in E7 pharma markets:
Increased purchasing power Expansion of health insurance Continued urbanization Ageing - increases in chronic disease
Source: IMS
The U.S. pharma market represents ~40% of the global market 23% of Bayers global pharma sales generated in the U.S. (2008) No direct exposure to the U.S. primary care market Limited Medicare/Medicaid exposure Portfolio focused on specialty pharma and biologicals:
60
23 0 10 20 30 40
Average
50
E7 pharmemerging markets represent ~10% of the global pharma market but 15% of Bayers global pharma revenues (2008) General Medicine portfolio as a key growth platform Growth in E7 continued in 9M2009: + 9%* Bayer is the among the top 3 international healthcare companies in China
PR China
386 (+53%)
146 (+14%)
Russia
287 (+6%)
Brazil
Mexico
E7: Brazil, Russia, India, China, Mexico, South Korea, Turkey *) all growth rates Fx adjusted
Our R&D Pipeline Provides a Balanced Mix of NME and LCM Opportunities
Phase I (8)
Colorectal Cancer L19-TNFalpha Gastro IBD Lipoxin Cancer MN Immunoconjugate Cancer PI3K Inhibitor Cancer MEK-Inhibitor Hemophilia rec. Factor VII DIC: Short-acting Thrombosis Inhibitor Diagnostic Imaging PET-Tracer Acute Heart Failure Cinaciguat (sGC Activator) DME VEGF Trap-Eye PH-COPD Riociguat (sGC Stimulator) PH-ILD Riociguat (sGC Stimulator) Lung / Ovar / Prostate Sagopilone (ZK-EPO) Cancer Regorafenib Cancer L19-SIP
Phase II (15)
Liposomal Formulation Kogenate Breast Cancer Nexavar Ovarian or Peritoneal Cancer Nexavar CRC Nexavar Additional Indications Nexavar Lung Infection Cipro inhale OC E2+DRSP Gram-negative Pneumonia Amikacin inhale Medical ill Xarelto SPAF Xarelto VTE Treatment Xarelto wet AMD VEGF Trap-Eye CRVO VEGF Trap-Eye
PAH Riociguat (sGC Stimulator) CTEPH Riociguat (sGC Stimulator) ACS Xarelto HRPC Alpharadin Alzheimer PET Imaging Florbetaben
Cardiology
inhibits blood clot formation lowers blood pressure in the lung inhibits enzymes important for tumor growth inhibits enzymes important for tumor growth targeted treatment of bone metastases in prostate cancer inhibits formation of new blood vessels
Oncology
Eye Diseases
Thromboembolism is the single largest cause of morbidity and mortality in the Western world In the US, VTE affects almost 1 million people each year and is responsible for more deaths each year than breast cancer, HIV disease, and motor vehicle crashes combined VTE is the third most common cardiovascular disease in the Western world, and contributes to around 10% of hospital deaths Almost all of the hospital deaths resulting from pulmonary embolism are preventable
Bayer Investor Presentation J.P. Morgan Healthcare Conference 2010 Page 20
30
120
VTE treatment PH III Primary prevention (excl. orthopedic surgery) PH III in VTE prevention in medically ill patients Secondary prevention Acute Coronary Syndrome (ACS) PH III
340
440
Stroke prevention in Atrial Fibrillation PH III
1,300
Study
Facts
>12,500 patients vs. standard therapy (enoxaparin) ~8,000 patients vs. standard therapy (enoxaparin)
Phase II
Phase III
Filing
launched filed (U.S.)
2011e
Chronic Indications
2010e
~14,000 patients noninferiority vs. standard therapy (warfarin) up to 16,000 patients in addition to standard therapy
2010e
2011/ 2012e
120,000
Pulmonary arterial hypertension (PAH) PH III Filing 2011E due to thromboembolic diseases PH III Filing 2011E due to lung disease PH II due to heart disease Under consideration Others
Approved products
>60,000
1,200,000
460,000
Riociguat
Bayer Investor Presentation J.P. Morgan Healthcare Conference 2010 Page 25
Open-label, uncontrolled phase II study involving 75 PAH and CTEPH patients Exercise capacity significantly improved
+ 23% in PAH-patients + 17% in CETPH-patients
+73.5
(p<0.001)
+64.3
(p<0.001)
Improvement on hemodynamic parameters, i.e. pulmonary arterial pressure, pulmonary vascular resistance Riociguat was well tolerated and had a favorable safety profile Phase III program in PAH and in CTEPH underway
CTEPH patients
Facts
~ 460 patients (treatment-nave or pretreated) vs.placebo (PATENT-1); Efficacy study and long-term extension
Phase I
Phase II
Phase III
Filing
2011e
CHEST-1 / -2
2011e
~ 20 patients (PH with interstitial lung disease - ILD) proof-of-concept; efficacy and dosefinding ~ 20 patients (PH with chronic obstructive pulmonary disease COPD) Single-dose hemodynamic study
PH with ILD
PH with COPD
Phase III-trials
Liver cancer
Adjuvant therapy vs. placebo (STORM-trial) Combination therapy with erlotinib (Tarceva)
Kidney cancer
Adjuvant treatment vs. placebo (EU) Adjuvant treatment (ECOG)
Ovarian cancer
Maintenace treatment after 1st-line treatment
Colorectal cancer
1st-line treatment in combination with FOLFOX
Thyroid cancer
Nexavar monotherapy
Capecitabine Nexavar
HER-2 negative, locally advanced or metastatic breast cancer Double-blind, randomized, placebo controlled phase II trial 229 patients (first and second line) Combination of Nexavar + Capecitabine significantly improved median progression-free survival by 74% vs. Capecitabine + Placebo (6.4 months vs. 4.1 months; HR=0.567, p=0.0006)*
Start of phase III breast cancer program in 2010 Additional phase II data from breast cancer program expected Completion of NExUS phase III trial in non-small cell lung cancer planned
in 2010
Regorafenib is an orally active multikinase inhibitor Distinct profile targeting angiogenic, stromal, and oncogenic receptor tyrosine kinases Potential for clinical differentiation from other VEGF-receptor inhibitors Phase III development program planned to be initiated in early 2010
Alpha-emitting radiopharmaceutical based on 223Radium delivering highly energetic, short ranging radiation Radium as natural bone seeker targets new bone growth in and around metastases
60% 30-40%
Phase III in symptomatic hormone-refractory prostate cancer data expected end 2011 Potential in additional cancer types to be evaluated
Prostate Breast
Thyroid
Lung
Kidney
DME / CRVO
Diabetic macular edema (DME) Phase II trial (DA VINCI) comparing VEGF Trap-Eye vs. laser treatment fully enrolled Primary endpoint: Change in best corrected visual acuity from baseline to week 24
Central retinal vein occlusion (CRVO) Phase III program underway (COPERNICUS, GALILEO) Comparing VEGF Trap-Eye vs. sham control injection Primary endpoint: visual acuity change vs. baseline after 6 months of treatment
Initial data from the VIEW program could be expected end of 2010
Bayer Investor Presentation J.P. Morgan Healthcare Conference 2010 Page 33
Further data from EINSTEIN program in DVT treatment Xarelto Completion of ROCKET AF trial in stroke prevention in Afib patients Completion of MAGELLAN trial in VTE prevention in medically ill patients Filing in DVT treatment and in stroke prevention Nexavar Regorafenib VEGF-Trap-Eye Riociguat Visanne Phase III initiation in breast cancer Completion of NExUS lung cancer trial Initiation of phase III (colorectal cancer 3/4th line) First data from phase III program in wet-AMD (VIEW program)
Phase III decision for PH-ILD and PH-COPD Launch for treatment of endometriosis (EU) Xarelto (VTE prevention after hip/knee replacement surgery) (US)
Qlaira (OC and treatment of heavy/prolonged menstrual bleeding) (US) Levitra orodispersible tablet (US, EU) YAZ plus (US)
The success of Bayers diversified Healthcare model is evident Attractive opportunities to fuel growth Exciting pharma pipeline - potentially transformational Targeting slight sales growth for Q409 versus strong Q408 and to improve the underlying EBITDA margin toward 28% in FY2009
Appendix
4,157
Consumer Health BMS 1,238 BCS
+10%
1.4
1.0
CC +6% (Market: ~4%) 3.0
10.0
Pharma
2,919
million
PH: Pharmaceuticals CC: Consumer Care AH: Animal Health DC: Diabetes Care, now Medical Care
13.6 % +2.5 pp
Indication
Pharma / Contraception Pharma / Multiple sclerosis Pharma / Hemophilia A Pharma, Consumer Care / Cardio, Pain Pharma / Hypertension, CHD Medical Care / Blood Glucose Meter Pharma / Bacterial infections Pharma / Cancer Pharma / Contraception Pharma / Erectile dysfunction Pharma / Bacterial infections Animal Health / Parasiticide Pharma / Diabetes mellitus Pharma / Diagnostic imaging Pharma / Diagnostic imaging
FY2008
1,222 1,144 848 719 626 554 462 462 462 341 338 329 304 261 241
%yoy*
22.2 15.0 7.3 7.3 3.9 18.4 7.8 75.7 35.5 7.0 -8.9 11.1 1.8 16.5 -17.4
9M09
964 904 680 521 473 442 313 445 367 265 253 275 243 190 166
%yoy*
4.4 5.5 1.4 -1.7 -3.3 7.1 -9.3 29.3 5.7 3.4 1.1 0.8 -2.0 -0.3 -14.6
*) Currency adjusted
Focus on biologicals
Representing ~20% of sales
5% 2%
63bn OTC market growing 4% (Fx adj.) in 2008 Targeting to outpace global OTC market growth Globally recognized brands (i.e. Aspirin, Aleve, Canesten, Bepanthen, Supradyn, One-a-Day, Alka Seltzer)
12%
28% Nutritionals
Growth drivers:
Leveraging strong brands Aging population / HealthCare systems Emerging markets
2008 was the third straight year as fastest growing blood glucose monitoring company Portfolio expansion through acquisition and new product launches Medrad is market leader in medical devices for diagnostic imaging procedures and cardiovascular applications
329
196
2003
2004
2005
2006
2007
2008
Ranked #5 in FAP
Strong position in parasiticides and anti-infectives
CAP: Companion animal products FAP: Food animal products
2007 2005
2003 1996
Date Wednesday, February 24, 2010 Friday, February 26, 2010 Thursday, April 29, 2010 Friday, April 30, 2010 Thursday, July 29, 2010 Thursday, October 28, 2010
Full Year 2009 Results Annual Report First Quarter Results Stockholders Newsletter
Second Quarter Results Stockholders Newsletter Third Quarter Results Stockholders Newsletter
Peter Dahlhoff Phone: +49-214-30-33022 E-mail: peter.dahlhoff@bayer-ag.de Judith Nestmann Phone: +49-214-30-66836 E-mail: judith.nestmann@bayer-ag.de