Company presentation : August 2012 Company Presentation August
2012
Slide 2
Company presentation : August 2012 The leading allergy
specialist 2 33% of global allergy immunotherapy market 2011
Revenue of EUR 316 million 9% 5 year CAGR Strategic partnerships 5
year CAGR 2011 EBITDA of EUR 55 million 75% 1,800 employees Leading
R&D pipeline with proven technology with a history dating back
to 1923
Slide 3
Company presentation : August 2012 Global reach 3 through
leveraged business platform ALK Merck Torii Expansion
opportunities
Slide 4
Company presentation : August 2012 Modifying the allergic
disease 4 with allergy immunotherapy Control group GRAZAX end of
treatment Year 2Year 1Year 3Year 4Year 5 Allergy symptoms
Desensitised immune system Cut the symptoms, treat the cause
Slide 5
Company presentation : August 2012 ALKs base business 5
Well-diversified product portfolio 46% *) Subcutaneous
immunotherapy (SCIT) 35% *) Sublingual immunotherapy (SLIT) 9% *)
Tablet immunotherapy (AIT) 10% *) Allergy diagnosis and treatment
for allergic shock (adrenaline pen) *) of 2011 product sales ALK
products: 600,000 patients in Europe 900,000 patients in North
America
Slide 6
Company presentation : August 2012 Unmet medical need in
allergy 6 Significant burden to patients and society North America
Japan Europe Patients in poor control Treated with immunotherapy
Allergic rhinoconjunctivitis (prevalence) 12m 3m 60m (19%) 35m
(27%) 85m (23%) 17m 1.5m 10m Population
Slide 7
Company presentation : August 2012 Meeting patient 7 needs
Poorly controlled allergy & asthma symptoms Underdiagnosis of
allergy & asthma Increasing prevalence of allergy & asthma
Global need for allergy immunotherapy Prevention of asthma
Prevention of new allergies Limited awareness of allergy
immunotherapy Allergy immunotherapy Growth
Slide 8
Company presentation : August 2012 Advancing the R&D
pipeline & expanding into asthma
Slide 9
Company presentation : August 2012 Progress in R&D 9
MITIZAX advances in Japan and North America PreclinicalPhase IPhase
IIPhase IIIMarketed Product nameIndicationGeography GRAZAX Grass
ARC 5 Europe Grass AIT 1,6 Grass ARCNorth America GRAZAX Asthma
prevention Europe Ragweed AIT 1,3,6 Ragweed ARCNorth America
MITIZAX HDM 4 asthmaEurope MITIZAX HDM rhinitisEurope HDM AIT 1 Not
disclosedNorth America MITIZAX 2 Not disclosedJapan Tree AITTree
ARCEurope Notes: 1) Merck holds the product rights for the North
American markets 2) Torii holds the product rights for the Japanese
market 3) Ragweed is currently only developed for North America 4)
HDM: House Dust Mite 5) ARC: Allergic Rhinoconjunctivitis 6) Filing
of registration application with the FDA expected in 2013
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Company presentation : August 2012 Established partnerships 10
in North America and Japan USD 55 million received in upfront and
milestone payments USD 45 million future milestone payments USD 190
million in sales milestones Sales royalties undisclosed EUR 30
million upfront payment EUR 30 million milestones payments Sales
milestone payments undisclosed Sales royalties undisclosed Product
supply Clinical development, registration, marketing & sales
TORII PHARMACEUTICAL CO., LTD.
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Company presentation : August 2012 Expanding reach of GRAZAX
Licensed to Merck in North America Registration application
submitted in Canada On-going Phase III trial to be completed in
2012 GAP: On-going landmark trial to investigate asthma prevention
To be completed in 2015 11 US filing expected in 2013 PlaceboGRAZAX
End of treatment Total daily rhinoconjunctivitis symptom score
Disease modifying treatment effect 32% 44% 37% 31%
Slide 12
Company presentation : August 2012 Preventing disease
progression 12 Reducing risk of asthma 1. Mller et al. JACI
2002;109:251-6 2. Jacobsen et al. Allergy 2007:62:943-8 Subjects
developing asthma at 3, 5, and 10 years (percentage of subjects;
n=151) p
Company presentation : August 2012 Vaccine sales +3-5% Revenue
323 EURm (2,400 DKKm) EBITDA > 40 EURm (300 DKKm) Accelerated
R&D Driving long-term value Outlook 2012 28 2015Beyond 2015
Revenue >400 EURm (3,000 DKKm) EBITDA >25% Growth drivers:
AIT portfolio in EU, North America and Japan Asthma prevention Jext
outside EU Milestone payments from partnerships Sales growth in
base business Geographical expansion Compliance with regulatory
requirements Sales royalties from partnerships Accelerated R&D
Acquisition of products and companies and new partnerships may
provide additional upside
Slide 29
Company presentation : August 2012 Forward-looking statements
This presentation contains forward-looking statements, including
forecasts of future revenue and operating profit as well as
expected business-related events. Such statements are subject to
risks and uncertainties as various factors, some of which are
beyond the control of the ALK Group, may cause actual results and
performance to differ materially from the forecasts made in this
presentation. Without being exhaustive, such factors include, e.g.
general economic and business conditions, including legal issues,
uncertainty relating to pricing, reimbursement rules, fluctuations
in currencies and demand, changes in competitive factors and
reliance on suppliers, but also factors such as side effects from
the use of the companys existing and future products since allergy
immunotherapy may be associated with allergic reactions of
differing extent, duration and severity. 29
Slide 30
Company presentation : August 2012 Thank you for your attention
Read more: www.alk-abello.com Per Plotnikof Director Head of
Investor Relations Phone: +45 4574 7576 E-mail:
[email protected]
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Company presentation : August 2012 Appendix
Slide 32
Company presentation : August 2012 Gross profit Financial
performance (1 EUR = 7.43 DKK) 32 Figures have been restated due to
new presentation of accounts in 2011 Balance sheet Total
revenueEBITDA Sales, marketing and administrationResearch and
development
Slide 33
Company presentation : August 2012 ALK well-established market
leader 33 Figures are based on internal estimates and analyses of
local reporting, surveys and other publicly available material
Global sales of allergy vaccines (800 EURm) Allergy vaccines
according to geography
Slide 34
Company presentation : August 2012 Market exclusivity Raw
materials in Pollen House dust mite Animal dander Analysis 34
secured through know-how, patents and regulation Bulk (API)
production Extraction Purification Freeze drying Analysis Finished
production Unique formulation Filling Analysis Proprietary rights
Patents Licensed rights (e.g. Zydis) Clinical data Trademarks High
barriers of entrance
Slide 35
Company presentation : August 2012 State of the art raw
material facility 35 secures independent sourcing capacity
Slide 36
Company presentation : August 2012 New tablet API unit provides
proprietary 36 High-quality pharmaceutical products
Slide 37
Company presentation : August 2012 Extension of tablet casting
unit ensures 37 Full control and capacity
Slide 38
Company presentation : August 2012 Packaging and distribution
38 Capacity
Slide 39
Company presentation : August 2012 ALK equity ALK (ALK B)
listed on NASDAQ OMX Copenhagen (Reuters: ALKB.CO / Bloomberg:
ALKB.DC) Number of shares outstanding: 10.1 million Two share
classes (A / B) Market Cap: ~460 EURm Largest shareholder groups
Lundbeck Foundation (40%), since 1987 ATP, Danish Labour Market
Pension Fund (>5%) Other insitutitional investors (~30%) ~14,000
retail investors (~25%) Foreign ownership: ~25% Domestic ownership:
~75% 39 and shareholder structure