• Like

Loading…

Flash Player 9 (or above) is needed to view presentations.
We have detected that you do not have it on your computer. To install it, go here.

Slide 1 - CLSA | Home

  • 555 views
Published

 

  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
No Downloads

Views

Total Views
555
On SlideShare
0
From Embeds
0
Number of Embeds
0

Actions

Shares
Downloads
24
Comments
0
Likes
1

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1. Allergan
    March 2010
    A Specialist in the Biopharmaceutical & Medical Device Industries
  • 2. 2
    This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding product development, market potential, expected growth, efficiencies, and Allergan's expected, estimated or anticipated future results, including Allergan’s earnings per share and revenue forecasts, among other statements. All forward-looking statements herein reflect Allergan’s current analysis of existing trends and information and represent Allergan’s judgment only as of the date of this presentation. Allergan’s performance may differ materially from its estimates and targets. Therefore, you are cautioned not to rely on any of these forward-looking statements and Allergan expressly disclaims any intent or obligation to update these forward-looking statements except as required to do so by law.
    Actual results may differ materially from Allergan’s current expectations based on a number of factors affecting Allergan’s businesses, including, among other things, the following: changing competitive, market and regulatory conditions; the timing and uncertainty of the results of both the research and development and regulatory processes; domestic and foreign health care and cost containment reforms; technological advances and patents obtained by competitors; the performance of new products, including obtaining government approval and consumer and physician acceptance, and the continuing acceptance of currently marketed products; the effectiveness of promotional and advertising campaigns; the potential for negative publicity concerning any of Allergan’s products and it’s adverse effects; the timely and successful implementation of strategic initiatives; the results of any pending or future litigations, investigations or claims; the uncertainty associated with the identification of, and successful consummation and execution of, external corporate development initiatives and strategic partnering transactions; and Allergan’s ability to obtain and successfully maintain a sufficient supply of products to meet market demand in a timely manner. In addition, matters generally affecting the economy, such as changes in interest and currency exchange rates, international relations, and the state of the economy worldwide, may materially affect Allergan’s results.
    These and other risks and uncertainties affecting Allergan’s businesses and operations may be found in Allergan’s most recently filed Form 10-K and any subsequent Form 10-Q under the heading “Risk Factors”. These filings, as well as Allergan's other filings with the U.S. Securities and Exchange Commission (SEC), can be obtained without charge at the SEC's web site at www.sec.gov. These SEC filings are also available at Allergan’s web site at www.allergan.com along with copies of Allergan’s press releases and additional information about Allergan. For further information, you can contact the Allergan Investor Relations Department by calling 714-246-4636.
    Forward-looking Statements
    © 2010 Allergan, Inc.  All rights reserved.
    ® & ™ Marks owned by Allergan, Inc.
    JUVEDERM® is a registered trademark of Allergan Industrie SAS
    ImitrexSTATdoseSystem®, Amerge®, Restylane®, Radiesse®, Dysport®, Xeomin®, Macugen®, Visudyne®,
    Avastin ® and Lucentis®are registered trademarks of their respective companies
  • 3. 3
    Allergan: Specialized and Diversified
    Specialized
    • Focused on six medical specialties
    • 4. Depth of physician relationships
    • 5. Leading market share positions
    • 6. Limited number of competitors
    Diversified
    • Broad portfolio of products
    • 7. Cash pay vs. reimbursed markets
    • 8. Worldwide geographic presence
    • 9. Emerging markets
    Growth
    • Track record of creating markets
    • 10. BOTOX® Cosmetic
    • 11. RESTASIS®
    • 12. LATISSE®
    • 13. Leader in Medical Aesthetics & Ophthalmology
  • 4
    Specialized
    Global Leader in Selected Medical Specialties
    • Broad portfolio of products
    • 14. Follow R&D technologies into specialties
    • 15. Build presence within specialties organically and through acquisitions
    Glaucoma
    TAZORAC® Topical
    - Cream
    - Gel
    ACZONE®
    - Topical Acne
    BOTOX®
    - Hyperhidrosis
    BOTOX®
    Therapeutic
    - Spasticity, CD,
    Chronic Migraine, JCP, etc.
    - LAP-BAND®
    - ORBERA™
    - EASYBAND™
    OAB - SANCTURA XR®
    - BOTOX®
    BOTOX®
    COSMETIC
    LATISSE®
    - Eyelash Growth
    BPH
    - BOTOX®
    GSK Co-promote
    Retina
    - OZURDEX™
    - TRIVARIS™
    - NOVADUR™(Brimonidine)
    - TKI
    Breast
    Aesthetics
    Bladder Cancer
    - Apaziquone(EOQUIN®)
    Targeted BOTOX®(Next Generation)
    - Pain
    Dermal Fillers
    - JUVÉDERM®
    - VOLUMA™
    Dry Eye
    Physician
    Dispensed
    Creams
    Ocular SurfaceDisease
    Medical
    Aesthetics *
    Ophthalmology
    Neurosciences
    Medical
    Dermatology
    Obesity
    Urologics
    Yellow-shaded sections represent areas of interest for licensing and acquisitions
    * Plastic surgery & dermatology
  • 28. Specialized
    Global Market Leadership PositionsMost Markets With Limited Number of Competitors
    AGN
    Market Position
    Ophthalmology
    Alcon
    Allergan
    #2
    Pfizer
    Other
    0%
    20%
    40%
    60%
    80%
    100%
    Neuromodulator
    BOTOX®
    #1
    Dysport
    Xeomin
    Other
    0%
    20%
    40%
    60%
    80%
    100%
    Dermal Facial Filler
    Restylane
    (Medicis / QMed)
    #2
    JUVÉDERM®(Allergan)
    Radiesse (BioForm)
    Other
    0%
    20%
    40%
    60%
    80%
    100%
    Breast Aesthetics
    Mentor / J&J
    #2
    Allergan
    Other
    0%
    20%
    40%
    60%
    80%
    100%
    Gastric Banding
    Allergan
    #1
    J&J
    Other
    0%
    20%
    40%
    60%
    80%
    100%
    U.S. Urology
    Pfizer
    #4
    GSK
    Novartis
    Allergan
    0%
    20%
    40%
    60%
    80%
    100%
    Other
    MAT Q3 2009. Sources: Ophthalmics – IMS Global (49 countries) at Q3-09 constant exchange rates+ actual US retina sales data.
    OAB – SDI (VONA) and Mail Order at ex-factory price levels. Neuromodulator/Filler/Breast/Banding – Internal estimates. Mixture of Public Information (Earnings Releases, 10Ks, 10Qs), D&B, AGN Internal Data, Syndicated Marketing Research Reports, Analyst Reports, Internet Searches, Competitive Intelligence, etc.
    5
  • 29. Specialized
    A Global Leader in Medical Dermatology
    and Medical Aesthetics
    1,000
    800
    6
    U.S.
    Sales ($MMs)
    600
    400
    Warner Chilcott
    Sanofi-Aventis
    GSK / Stiefel
    200
    Graceway
    Galderma
    Nycomed
    Allergan
    Medicis
    J&J
    0
    1,750
    1,500
    1,250
    Sales ($MMs)
    Worldwide
    1,000
    750
    500
    Schering Plough
    Sanofi-Aventis
    GSK / Stiefel
    Graceway
    Galderma
    Nycomed
    Allergan
    Novartis
    250
    Bayer
    J&J
    0
    MAT Q4-08 US$ Sales at Actual RatesIncluded Businesses: Breast Aesthetics, Botulinum Toxins (Cosmetic), Dermal Facial Fillers, Health / Obesity (bands and balloons) and Skin CareSources: Internal estimates / various sources; Skin Care – IMS D Class (15 countries) (proxy for Dermatology)
  • 30. Broad Product PortfolioEstimated Peak Potential
    $500-1,000
    <$200
    $200-500
    >$1B
    NOVADUR™ - OZURDEX™
    LAP-BAND®
    LATISSE®
    LUMIGAN® / GANFORT™
    RESTASIS®
    ACUVAIL®
    ACZONE®
    SANCTURA XR®
    TAZORAC® Topical
    TRIVARIS™
    ZYMAR®
    ALPHAGAN® /
    COMBIGAN®
    JUVÉDERM®/Dermal Fillers
    NATRELLE® /
    Breast Implants
    REFRESH®Tears Line
    BOTOX®
    Diversified
    7
  • 31. 8
    FY 2009 $4.4 Billion
    +3%
    BOTOX® Therapeutic
    BOTOX® Cosmetic
    15%
    14%
    Facial Aesthetics
    LATISSE®
    5%
    2%
    Breast Aesthetics
    6%
    Obesity Intervention
    Ophthalmology
    6%
    47%
    Business Segments
    ~72% Reimbursed vs. ~28% Cash Pay
    Urologics
    Skin Care
    2%
    3%
    Diversified
    ~28% Cash Pay
    ~72% Reimbursed
  • 32. Variety of Growth CatalystsWorldwide Approvals / Launches
    Diversified
    9
    * Anticipated future approvals
  • 33. Track Record of Creating Markets
    First 5 years of revenue growth
    RESTASIS®
    BOTOX® Cosmetic
    $400
    $500
    $400
    $300
    $300
    $200
    $200
    $100
    $100
    $0
    $0
    2003
    2004
    2005
    2006
    2007
    2002
    2003
    2004
    2005
    2006
    Growth
    LATISSE®
    $500
    $400
    $300
    $200
    $100
    $0
    2009
    Peak Potential
    10
  • 34. Track Record of Creating Markets
    Accelerated Sales Post Acquisition by Allergan
    Facial Aesthetics
    Breast Aesthetics
    $250
    $350
    $300
    $200
    $250
    $150
    $200
    $150
    $100
    $100
    $50
    $50
    $0
    $0
    2004
    2005
    2006
    2007
    2008
    2004
    2005
    2006
    2007
    2008
    Owned by Allergan
    Owned by Allergan
    Growth
    Obesity Intervention
    $300
    $250
    $200
    $150
    $100
    $50
    $0
    2004
    2005
    2006
    2007
    2008
    Owned by Allergan
    11
  • 35. 12
    DTC - Spending Into Recovery
    JUVÉDERM®
    LATISSE®
    Growth
  • 36. 13
    DTC - Spending Into Recovery
    LAP-BAND®
    RESTASIS®
    Growth
  • 37. Allergan DTC SpendingInvesting In Growth & Innovation
    +47%
    +36%
    -7%
    Advertising Expense ($M)
    Growth
    14
    Source: Allergan SEC filings. Expenditures net of media discounts, including fees and production costs.
  • 38. 15
    Worldwide Ophthalmics: High Market Shares in
    Fastest Growing Market Segments
    $ Millions
    AGN Market Share
    Market Growth
    $12,000
    100%
    +21%
    Therapeutic Dry Eye: $507
    $11,000
    OZURDEX™ / TRIVARIS™
    0%
    +26%
    Retina: $2,023
    $10,000
    RESTASIS®
    +19%
    41%
    NSAIDs: $375
    $9,000
    ACUVAIL®
    29%
    +10%
    Artificial Tears: $1,020
    REFRESH® / OPTIVE™
    $8,000
    ZYMAR® / ZYMAR® X*
    $7,000
    22%
    +7%
    $6,000
    Glaucoma: $4,411
    LUMIGAN®0.01%*
    LUMIGAN® / GANFORT™
    ALPHAGAN® / COMBIGAN®
    Growth
    $5,000
    $4,000
    Other ExternalDisease: $1,261
    9%
    +6%
    $3,000
    4%
    -1%
    Other: $306
    16%
    +8%
    $2,000
    Anti-Infective: $882
    6%
    +5%
    Allergy: $862
    $1,000
    $0
    Worldwide MAT Q3 ‘09
    excluding Japan
    Source: IMS Global
    * Anticipated future approval
  • 39. Alcon
    Pfizer
    Allergan
    Total Market
    Merck
    OphthalmologyAllergan fastest growing global ophthalmology company last 8 years*
    YTD 2009 world market growth 8%
    Allergan #2 market share position in 2008*
    Allergan #2 in Glaucoma 2008**
    20%
    15%
    10%
    Sales Growth*
    5%
    Growth
    0%
    -5%
    Merck -37%
    -10%
    2002
    2003
    2004
    2005
    2006
    2007
    2008
    YTD
    Q3 '09
    * Source: Ophthalmics – IMS Global (48 countries) US$ sales growth, at constant exchange rates.  Excludes retina. ** Source: IMS Global, Excluding Japan
    16
  • 40. 17
    BOTOX® GrowthPerformance Across Segments
    • Therapeutic expected to re-accelerate withanticipated approvals
    • 41. Spasticity, Chronic Migraine, and OAB
    1,400
    +8%
    +0%
    BOTOX®
    Franchise
    +23%
    1,200
    +24%
    1,000
    +18%
    800
    Therapeutic
    +25%
    +4%
    +8%
    Sales ($M)
    +19%
    Growth
    +28%
    600
    Cosmetic
    +17%*
    +8%
    -4%
    +16%
    +29%
    +42%
    +20%
    +25%
    400
    +32%
    +30%
    +21%
    +30%
    200
    +25%
    +60%
    0
    2002
    2003
    2004
    2005
    2006
    2007
    2008
    2009
    * Growth rate in 2006 compared to 2005 excludes $38.8 million of Japan BOTOX® net sales in the 2005 base amount.
  • 42. 18
    BOTOX® - The Winner in Europe
    Allergan
    2000 – YTD Q3’09: Market share gains
    + 14 points Total Market
    + 12 points Therapeutic Market
    + 3 points Cosmetic MarketCosmetic share ~80%
    Competition
    70%
    65%
    60%
    55%
    Market Share*
    50%
    Growth
    45%
    40%
    35%
    30%
    YTD
    Q3'09
    2000
    2001
    2002
    2003
    2004
    2005
    2006
    2007
    2008
    *Source: Allergan Market Estimates Top 5 European Markets (France, Germany, Italy, Spain, UK)
  • 43. 19
    Creating & Leading High Growth MarketsWorldwide Neuromodulator Market
    *
    Allergan:
    • Successful investments to drive market expansion
    • 44. Stable market share despite several new competitors
    $1,600
    $1,400
    China Toxin
    81%
    83%
    $1,200
    Medy-Tox
    85%
    $1,000
    85%
    Sales $ Millions
    Dysport
    $800
    85%
    Xeomin
    Growth
    85%
    $600
    87%
    $400
    86%
    $200
    $0
    YTD Q3‘ 09
    2002
    2003
    2004
    2005
    2006
    2007
    2008
    WW Neuromodulator Market
    BOTOX®
    * Annualized Sales
  • 45. LATISSE® Sales
    Strategic Fit With Medical Aesthetics Franchise
    Global Market Peak Sales Could Exceed $500MM
    $30
    $25
    $20
    $15
    Growth
    $10
    $5
    $0
    Q1 2009
    Q2 2009
    Q3 2009
    Q4 2009
    20
  • 46. R&D Spend
    • Major efficiency gains in 2009
    • 47. Completion of major clinical phase III trials in 2008/2009
    • 48. Mid-term investment goal ~17% of product net sales
    20.0%
    $800
    1
    $729
    $722
    1
    $675
    $700
    1
    $646
    18.0%
    $600
    1
    $476
    $500
    16.0%
    R&D $ (in millions)
    R&D as a % of Sales
    1
    $384
    $400
    1
    $343
    1
    $305
    14.0%
    $300
    1
    $228
    1
    $188
    $200
    $164
    $135
    12.0%
    $98
    $100
    +38%
    +15%
    +21%
    +34%
    +21%
    +12%
    +12%
    +24%
    +36%
    +13%
    -7%
    +7%
    10.0%
    -
    2
    3
    1998
    1999
    2000
    2001
    2002
    2003
    2004
    2005
    2006
    2007
    2008
    2009
    2010E
    21
    1 Adjusted for non-GAAP items. See reconciliation at end of presentation.
    (Periods 1998-2001 not restated for 2006 change in financial reporting of amortization of acquired intangible assets)
    2 Includes Allergan Medical activities for 9 months.
    3 2010E represents midpoint of expectations provided on February 4, 2010 and has not been updated.
    This presentation does not reaffirm such expectations.
  • 49. 22
    OZURDEX™
    (dexamethasoneintravitreal implant 0.7mg)
    • Retina Market Size:$2.1B*
    • 50. 5 Year CAGR: 42%
    • 51. Current Treatment Options: Lucentis/Avastin, Macugen, Visudyne, Steroids, Laser
    Macular Edema associated with RVO
    • Launched Q3 2009
    • 52. Swelling of the central retina or macula due to obstructed retinal vein
    Uveitis
    (Intermediate & Posterior)
    • Filed Q4 2009
    • 53. Inflammation in the vitreous and retina (back of eye)
    Growth
    Age Related Macular Degeneration
    • Phase IIIB (Dexamethasone implant as adjunctive therapy to Lucentis)
    • 54. Added patient benefit in combination with Lucentis
    Diabetic Macular Edema
    • Phase III (Enrollment completed Q2 2009)
    • 55. Swelling of the macula resulting from leakage of damaged blood vessels due to diabetes
    * Worldwide MAT Q3 2009
  • 56. 23
    Potential Future Catalysts for
    BOTOX® Therapeutic
    BOTOX®
    Chronic Migraine
    • sBLA filed with FDA in Q3 2009
    • 57. Estimated to affect between 1.2 and 3.6 million people in the United States1
    • 58. Clinical Trials (155-195 Units every 12 weeks)
    BOTOX®Spasticity
    • Approved in most international countries
    • 59. Additional information requested by the FDA in its complete response letter submitted in Q3 2009
    • 60. Incremental peak year sales of $200M – $300M with U.S. approval
    BOTOX®
    OAB
    • Phase III trials for Neurogenic
    • 61. Phase III trials for Idiopathic began recruiting Q3 2009
    • 62. Positive Phase II results for Idiopathic presented at AUA (April 2009)
    Growth
    BOTOX®
    BPH
    • Phase II trials ongoing
    Targeted
    BOTOX®
    • Phase I trials ongoing including assessment in Pain
    • 63. Patented molecule
    1 Scher AI, Stewart WF, Liberman J, Lipton RB. Prevalence of frequent headache in population sample. Headache 1998. 
    Bigal ME, Serrano D, Reed ML, Lipton RB. Chronic migraine in the population. Neurology, 71; 2008.
  • 64. 24
    Strong R&D Pipeline
  • 65. 25
    Strong R&D Pipeline
  • 66. 26
    Limited Generic ExposureStrong Patent Estate
    • Products with expiries post 2020
    • 67. COMBIGAN®, SANCTURA XR®, LATISSE®
    • 68. Strategies in place for products with short term expiries
  • 27
    AllerganStaying Power
    • Track record of investing to create markets with favorable global mega-trends
    • 69. Multiple growth drivers with leading market share positions
    • 70. Diversified product line with attractive payor mix (cash / reimbursed)
    • 71. Moderately priced therapies
    • 72. Fully integrated R&D
    • 73. Strong, diverse product pipeline
    • 74. Global infrastructure
    • 75. Unique blend of management skills
    • 76. Large enough to command sufficient resources to drive markets,small enough for nimble execution
    • 77. Strong financial position
  • 28
    Reconciliation of Selected Non-GAAP Financial Measures
    “GAAP” refers to financial information presented in accordance with generally accepted accounting principles in the United States.
    In this presentation, Allergan included historical non-GAAP financial measures, as defined in Regulation G promulgated by the Securities and Exchange Commission, with respect to estimates for the year ended December 31, 2009, and the corresponding periods for 1999 through 2008. Allergan believes that its presentation of historical non-GAAP financial measures provides useful supplementary information to investors. The presentation of historical non-GAAP financial measures is not meant to be considered in isolation from or as a substitute for results prepared in accordance with GAAP.
    In this presentation, Allergan reported the financial measures “Adjusted Sales”, “Adjusted SG&A”, “Adjusted R&D” and “Proforma Growth” as adjusted for Non-GAAP items. Allergan uses Adjusted Sales, Adjusted SG&A, Adjusted R&D and Proforma Growth to enhance the investor’s overall understanding of the financial performance and prospects for the future of Allergan’s core business activities. Specifically, Allergan believes that a report of Adjusted Sales, Adjusted SG&A, Adjusted R&D, and Proforma Growth provides consistency in its financial reporting and facilitates the comparison of results of core business operations between its current, past and future periods. Adjusted Sales, Adjusted SG&A, Adjusted R&D, and Proforma Growth are the primary indicators management uses for planning and forecasting in future periods. Allergan also uses Adjusted Sales and Adjusted R&D for evaluating management performance for compensation purposes.
  • 78. 29
    Reconciliation of Selected Non-GAAP Financial Measures
    Adjustments to GAAP research and development expense used to calculate research and development expense, adjusted for non-GAAP items, include the following: $10.0 million for an upfront payment for technology that has not achieved regulatory approval, a $21.0 million charge related to the modification of certain employee stock options in connection with a restructuring plan and $0.1 million of termination benefits related to the phased closure of the Arklow, Ireland breast implant manufacturing plant in 2009; $68.7 million for upfront payments for technologies that have not achieved regulatory approval and $0.3 million of termination benefits related to the phased closure of the Arklow, Ireland breast implant manufacturing plant in 2008; $72.0 million of in-process research and development expense related to the EndoArt acquisition in 2007; $579.3 million of in-process research and development expense related to the Inamed acquisition, $0.2 million of Inamed integration and transition costs and $0.5 million of transition/duplicate operating expenses in 2006; $1.5 million of transition/duplicate operating expenses and a $3.0 million buy-out of a license agreement in 2005; $458.0 million of in-process research and development expense related to the acquisitions of Bardeen Sciences Company LLC and Oculex Pharmaceuticals, Inc. in 2003; $0.7 million of duplicate operating expenses and a $4.0 million charge related to a collaboration agreement in 2002; and $40.0 million of in-process research and development expense related to the acquisition of Allergan Specialty Therapeutics, Inc. in 2001. GAAP research and development expense was $706.0 million, $797.9 million, $718.1 million, $1,055.5 million, $388.3 million, $342.9 million, $762.6 million, $232.7 million and $227.5 million in 2009, 2008, 2007, 2006, 2005, 2004, 2003, 2002 and 2001, respectively. GAAP research and development expense growth (decline) was (12%), 11%, (32%), 172%, 13%, (55%), 227%, 3% and 37% for 2009, 2008, 2007, 2006, 2005, 2004, 2003, 2002 and 2001, respectively.
  • 79. Allergan
    March 2010
    A Specialist in the Biopharmaceutical & Medical Device Industries