• Share
  • Email
  • Embed
  • Like
  • Save
  • Private Content
Ophthalmology Capital Markets
 

Ophthalmology Capital Markets

on

  • 1,193 views

The report data depicts an ongoing growth trend that began in 2011 with a $36 billion ophthalmology market that is projected to grow at a 5.12% CAGR to 2017, appearing to be funded by an investment ...

The report data depicts an ongoing growth trend that began in 2011 with a $36 billion ophthalmology market that is projected to grow at a 5.12% CAGR to 2017, appearing to be funded by an investment model comprising more targeted ventures that would utilize larger individual investments made in fewer technology platforms.

Statistics

Views

Total Views
1,193
Views on SlideShare
888
Embed Views
305

Actions

Likes
0
Downloads
39
Comments
0

4 Embeds 305

http://www.ophthalmologysummit.com 258
http://eyeoninnovation.com 26
http://ois.net 16
http://ophthalmologysummit.com 5

Accessibility

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

    Ophthalmology Capital Markets Ophthalmology Capital Markets Presentation Transcript

    • Ophthalmology Capital Markets
    • 2 $- $10 $20 $30 $40 $50 $60 2011 2012 2013 2014 2015 2016 2017 Ophthalmology to reach $48 Billion in 2017  Key Market Drivers:  Aging populations  Increased incidence of diabetes  Rising wealth in emerging markets  New product innovations.  5 Major Disease Conditions:  Glaucoma  Age related Macular Degeneration  Conjunctivitis  Dry Eye Conditions  Cataracts  Ophthalmology Drugs market is expected to grow at a slower pace compared with the devices market. This is due to the patent cliff and a less-than-robust pipeline of future products.  Advancements in technologies, high prevalence rates of refractive error, cataract, and glaucoma, increasing demand for the diagnostic procedures and low compliance with pharmaceuticals will propel the devices market. CAGR ~ 5.12% Source: BCC Research: Ophthalmic Devices, Diagnostics, and Surgical Equipment: Global Markets; MarketsandMarkets: Ophthalmology ; MedCity News: Global Ophthalmology Market; Valeant; Mckinsey Market Growth $ in Billions
    • 3 Total Transaction Size Transaction Distribution Capital Raise Although the number and total size of transactions declined, the number of transactions more than $50 million has increased when compared to the prior years. $597 $308 $271 $482 $347 33 20 23 22 19 0 10 20 30 40 50 60 70 80 $0 $100 $200 $300 $400 $500 $600 $700 2008 2009 2010 2011 2012 #ofTransactions Millions 12% 10% 22% 9% 5% 21% 30% 26% 18% 21% 12% 15% 13% 5% 11% 48% 40% 35% 59% 63% 6% 5% 4% 9% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2008 2009 2010 2011 2012 >$50MM $10-49MM $5-9MM $1-4MM <$1MM
    • 4 Total Transaction Size Transaction Distribution M&A Transactions Total transaction value dropped to $872 Million in 2012, from $12 billion in 2011. 63% 50% 50% 54% 50% 13% 10% 11% 15% 13% 10% 17% 23% 50% 6% 20% 6% 10% 11% 8%6% 6% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2008 2009 2010 2011 2012 >$5B $1-5B $500-1B $100-500MM $50-100MM <$50MM $12,457 $4,409 $35,740 $12,808 $872 16 10 18 13 6 0 10 20 30 40 50 60 70 80 $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 2008 2009 2010 2011 2012 #ofTransactions Millions
    • 5 Capital Flow Analysis ($ in millions except stock price) Company Name Stock Price 52 Week High/Low LTM Total Rev Market Cap TEV Total Debt / LTM EBITDA TEV/LTM Total Rev TEV/LTM EBITDA 3 Yr. Revenue Growth LTM Gross Margin LTM EBITDA Margin Johnson & Johnson $90.40 99% $69,992 $253,923 $248,147 0.7x 3.5x 11.1x 3.8% 68.2% 32.0% Pfizer $28.68 92% 57,601 203,434 209,042 1.6x 3.6x 8.3x 1.1% 81.0% 44.0% Novartis (Alcon) $73.43 94% 57,798 180,436 195,601 1.2x 3.4x 11.0x 6.8% 67.9% 29.7% Merck $48.23 96% 46,207 145,636 153,016 1.3x 3.3x 9.0x 11.4% 65.1% 35.4% Allergan $90.14 77% 5,918 27,723 27,664 1.2x 4.7x 14.8x 8.4% 86.9% 31.6% Regeneron $262.71 93% 1,586 25,557 25,712 0.7x 16.2x 41.0x 57.3% 51.6% NM Essilor $107.07 91% 6,578 22,598 23,263 0.8x 3.5x 15.6x 15.1% 55.8% 22.3% The Cooper Companies $125.07 97% 1,538 6,085 6,414 0.7x 4.2x 14.8x 11.2% 64.2% 28.2% Ginko $19.35 97% 134 1,750 1,729 0.5x 12.9x 36.3x 0.0% 63.1% 35.5% St. Shine Optical $29.07 98% 146 1,466 1,433 0.5x 9.8x 25.4x 19.7% 44.4% 38.5% STAAR Surgical $10.76 98% 66 395 383 1.5x 5.8x 91.1x 7.9% 69.4% 6.3% Mani $37.38 96% 91 419 348 0.0x 3.8x 9.6x -0.4% 60.7% 39.3% Median 0.8x 4.0x 14.8x 8% 65% 32% SV Life Sciences Advisers 30 Alcon 6 # of Companies 173 Versant Ventures 25 Allergan 5 # of Investors 579 Domain Associates 22 Bausch & Lomb 4 Investors / Company 3.3 Atlas Venture 15 Novartis 4 # of Rounds 361 De Novo Ventures 15 Opko Health 4 # of Rounds / Company 2 InterWest Partners 15 Abbott Medical Optics 3 Avg. Round Size ($M) $16 Clarus Ventures 13 Carl Zeiss Meditec 3 Total Invested $5,851 Polaris Partners 11 # of Exits 8 Aisling Capital 10 M&A Exits 4 Brentwood Venture Capital 10 Qianjiang Yongan Pharmaceutical 2/5/2010 $107 Public Offering Exits 4 HBM Partners 10 Jazz Pharmaceuticals Public Limited Company 3/8/2007 $108 # of Illiquid Companies 165 Alta Partners 9 Oldtech 9/12/2003 $137 Illiquid Capital ($M) $4,135 Kleiner, Perkins, Caufield & Byers 9 Alcon 2/22/2002 $2,302 Illiquid Capital (3 Yrs) ($M) $1,219 Novo A/S 9 Lexicon Pharmaceuticals 2/9/2000 $220 % of Illquid Capital (3 Yrs) 29% Omnes Capital 9 Ocular Sciences 5/19/1997 $119 Healthios, Inc -- Not for for distribution Initial Public Offerings / Date / TEV ($M) PUBLIC CAPITAL MARKETS Size Trading Multiples Operating Statistics PRIVATE INVESTMENT Most Active Venture Investors / Rounds Most Active Strategic Acquirors / Deals Liquidity
    • 6 Most Recent Notable M&A Transaction Financial Metrics Bausch + Lomb Position  Expected 2013 Bausch + Lomb financials  Revenue of ~$3.3 billion • Pharmaceuticals = ~$1.4B • Vision Care = ~$1.3B • Surgical = ~$0.6 B  Adjusted Gross Margins = ~62%  Adjusted EBITDA of ~$720 million  At least $800 million in synergies expected by the end of 2014  Expect to integrate into Valeant’s corporate structure  Immediately accretive  ~40% accretive to Valeant’s 2013 Cash EPS 1  Transaction value approximately $8.7 billion  Expected to close in the third quarter  ~4.6x Net Debt/ Pro Forma Adjusted EBITDA  Company expects leverage to be below 4.0x by the second half of 2014  Comprehensive product portfolio  Products presence across all key market segments: IOL, Anterior Phaco & VitRet, Visco, Instruments  Support cataract, refractive and therapeutic procedures from a single platform  Pipeline  Biotrue ONEday Multifocal Contact Lens  Next Generation SiHy(Silicone Hydrogel) Monthly Contact Lens  PeroxiClear  Mapracorat  Latanaprostene Bunod  Ocular Redness Therapy  Trulign Toric Premium IOL  enVista Toric IOL (US)  Technolas 317 Excimer Refractive Laser Platform Valeant acquires Bausch + Lomb for $8.7 billion. Source: Valent; McKinsey
    • 7 Most Recent Notable M&A Transaction Agreement Terms Key Features  Under the terms of the agreement, Abbott will acquire OptiMedica for $250 million, net of cash, plus additional payments totaling up to $150 million upon completion of certain development, regulatory or sales milestones Abbott acquires OptiMedica for $400 million. Source: Valent; McKinsey  Provides Abbott with an entry point into the rapidly developing laser cataract surgery market  Catalys™ Precision Laser System  FDA Approved & CE Mark  Includes 3D Optical Coherence Tomography technology.  Catalys™ laser system is indicated for use in patients undergoing cataract surgery for removal of the crystalline lens, with the following intended uses:  Anterior capsulotomy  Phacofragmentation  Creation of single and multi-plane arc incisions in the cornea.
    • 8 Most Recent Notable M&A Transaction Agreement Terms and Strategy Synergy  Shire:  Upfront payment of $160 million.  SARcode shareholders will be eligible to receive additional undisclosed payments upon achievement of certain clinical, regulatory, and/or commercial milestones.  Shire is acquiring the global rights to LIFITEGRAST(for treatment of dry eyes) and will evaluate an appropriate regulatory filing strategy for markets outside of the United States.  Shire anticipates launching LIFITEGRAST in the United States as early as 2016 pending a positive outcome of the phase 3 clinical development program and regulatory approvals.  Premacure:  HGT-ROP-001 for the prevention of retinopathy of prematurity  As a part of the transaction, Shire will purchase with upfront payment and certain contingent payments based on the achievement of pre-specified development and commercial milestones.  Looking to combine technology from recent acquisition of Premacure and Shire.  Introduction of a new late-stage phase 3 SPD606 (LIFITEGRAST) product and phase 2 HGT-Rop- 001 - clinical program to Shire’s research and development portfolio.  Three clinical trials – OPUS-1, OPUS-2 and SONATA – currently make up the phase 3 clinical development program for LIFITEGRAST. Shire acquires SARcode Bioscience for $160 million and acquires Premacure for a undisclosed amount. Source: Valent; McKinsey