Company Presentation€¦ · presentation. None of the Company or any of its directors, officers,...

Company Presentation

Disclaimer

This presentation has been produced by Medios AG (the „Company“). The facts and

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This presentation speaks as of June 2020. Neither the delivery of this presentation nor any

further discussions of the Company with any of the recipients shall, under any

circumstances, create any implication that there has been no change in the affairs of the

Company since such date.

2

Manfred Schneider Chief Executive Officer

Matthias Gärtner Chief Financial Officer

Mi-Young Miehler Chief Operating Officer

Christoph Prußeit Chief Innovation Officer

Pharmacist

More than 20 years of

pharmacy markets

experience

IT-Specialist

More than 20 years of

financial markets

experience

Business Economist

Business development

specialist

Pharmacist

Expert in the area of

pharmaceuticals

production and safety

Management team

3

Group

€m

16.2

Group

€m

16.2

• Strongly positioned in

patient-specific medication

• 90,000 individualized

preparations in 2019

• Highly focused on

specialty pharma drugs

• 1,000 products available

Medios at a glance

PHARMACEUTICAL SUPPLY PATIENT-SPECIFIC MANUFACTURING

One of the leading specialty pharma providers in Germany

GMP*-certified specialist for pharmaceutical supply, patient-specific therapies and drug safety

Focus on five indication areas: oncology, neurology, autoimmune diseases, ophthalmology, infectious diseases

Specialty pharma: Individualised Medicine, treatment of chronic and/or rare diseases, mostly time and cost intensive

BUSINESS SEGMENTS

FY 2019 EBT** split FY 2019 EBT** split

67%

Supply

Manufacturing

4

33%

Supply

Manufacturing

* GMP: Good Manufacturing Practice ; ** Adjusted for extraordinary expenses, e.g. stock options

Opdivo ®

(manufactured product,*1 no set purchase price)

• Skin cancer

• Lung cancer

• Renal cell

carcinoma

• Treatment:

6-12 months

• Up to EUR

160,000 per

patient/year

Humira ®

• i.a.

rheumatism

• Treatment:

approx. 12

weeks

• Up to EUR

42,000 per

patient/year

Harvoni ®

• Hepatitis C • Treatment:

8-24 weeks

• Up to EUR

100,000 per

therapy

Replagal ®

• Morbus Fabry • Treatment:

6-54 months

• Approx. EUR

300,000 per

patient/year

Cancer

diseases

• Breast cancer

• Prostate

cancer

• Leukaemia,

etc.

1,600,000

Others

Infectious

diseases

Autoimmune

diseases

200,000

300,000

1,500,000

Medios has the broadest specialty pharma product portfolio to address EUR 13.5bn market opportunity in Germany

INDICATION

CATEGORY

MEDIOS PRODUCT EXAMPLES

* incl. estimated numbers of cases per year in Germany (sources: DAlzG, bms-virologie.de, RKI, PZ, dgn.org, DGRh, Der Nervenarzt, krebsinformationsdienst.de,

morbus-crohn-aktuell.de, fachinfo.de, hivandmore.de, shire.de) *1Patient-specific preparation required

Product from segment ‘Patient-specific Manufacturing’; Product from segment ‘Pharmaceutical Supply ’

INDICATION

# OF

PATIENTS

P.A. IN

GERMANY* PRODUCT DISEASE

THERAPY

(EXEMPLARY) COSTS

• Multiple

Sclerosis

• Morbus Crohn

• Rheumatism

• Hepatitis C

• HIV

• Alzheimer

• ALS

• Morbus Fabry

450,000

88,400

1,000,000

8,000

2,000

5

44.6 45.8

47.8 48.2 49.1

50.8

2013 2014 2015 2016 2017 2018

Pharmacies revenue in Germany

(in EUR bn)

100

123

149 158

192 208

100 106 111 108 111 115

2013 2014 2015 2016 2017 2018

Revenue specialty pharma drugs* vs.

Revenue other RX drugs (in %)

Specialty pharma drugs

Rx drugs

Dynamic market development in Germany

Market environment

REVENUE OF PHARMACIES IN GERMANY 2018

1/3 Manufactured products***

2/3 Finished medicinal products

Total

revenue* EUR 50.8bn

+3.5% yoy

EUR 41.0bn +4.3% yoy

Rx drugs

Revenue*

EUR 13.5bn 2023e: EUR 20.7bn (+53%)

Specialty pharma

drugs revenue**

thereof

thereof

6

* Source: ABDA Zahlen, Daten, Fakten 2018/2019; ** Sources: Arzneiverordnungsreport 2018, ABDA Zahlen, Daten, Fakten 2018; Forecast: IQVIA, The Global Use of Medicine in 2019 and Outlook to

2023, 2019; *** Patient-specific preparation required

Strong underlying drivers for future market growth

DEVELOPMENT OF NEW ACTIVE

PHARMACEUTICAL INGREDIENTS PATIENT-SPECIFIC MEDICINE DEMOGRAPHIC CHANGE

New therapies

mainly focused on rare,

chronic or genetic diseases

Diagnostics and therapies

are increasingly individualised

– impact of gene based

medical knowledge

Considerable

increase in chronic diseases

due to an ageing population

Expected market growth of specialty pharma in Germany 2018 - 2023: + 53%.*

Market environment

7

*Source: IQVIA, The Global Use of Medicine in 2019 and Outlook to 2023, 2019

Medios is a highly specialised partner for specialty pharma drugs across Germany

Oncology

Autoimmune

Infectious Diseases

Other

INDICATION SPECIFIC PARTNERS

Around 200 specialized

partners nationwide (as of Jan 2020)

Coverage of the entire

specialty pharma market:

various indications

BENEFITS FOR PARTNERS

Attractive purchasing and

payment conditions

Optimized purchasing management:

planning and bundling

of our partners needs

Ensuring delivery capability

Market positioning & business model

STRONG PARTNER NETWORK ACROSS GERMANY

8

Pharmaceutical Supply: ‘Classic’ trading structure of full-range wholesale

Standard condition agreements on the entire range of products

of the respective manufacturer – approx. 100,000 products

Pharmaceutical Company 1 Pharmaceutical Company 2 Pharmaceutical Company 3

9


Pharmaceutical Supply: Medios’ innovative trading structure

10


Individual conditions agreement at individual product level

max. 1,000 specialty pharma drugs

Pharmaceutical Company 1 Pharmaceutical Company 2 Pharmaceutical Company 3

19,000

1,000

Full Range Wholesaler

Medios

100,000

1,000

20

1

EUR

41.0 bn

EUR

13.5 bn

All Highly specialized

pharmacies

Full

assortment

of drugs

Specialty

pharma drugs

Regional

warehouses Central

warehouse

Rx drugs Specialty

pharma drugs

MARKET POTENTIAL DISTRIBUTION

SYSTEM PRODUCT RANGE

PHARMACIES IN GERMANY

~5% 1% 5%

~33%

Pharmaceutical Supply: Medios is highly focused and highly efficient

11


• Nationwide supply with individualized application

ready infusions for various indication areas

(e.g. oncology, neurology, gastroenterology)

• Production complies with highest quality

standard GMP

• Approx. 90,000 preparations in 2019

• 10 workstations at two production sites in Berlin

• Cost & process synergies with segment

‘Pharmaceutical Supply’

DOCTOR

• Order received at the pharmacy

PHARMACY

• Validation of the prescription

• Order placed at Medios

• Additional confirmation of the prescription

• Manufacture of the medical preparation in

accordance with GMP

PHARMACY

• Fast delivery to the doctor –

invoice to the insurer

DOCTOR

• Timely administration of the prescription

Patient-specific Manufacturing: Medios is the only player at scale covering a broad range of indications

PATIENT-SPECIFIC MEDICATION PROCESS IN GERMANY

12


STRONGLY POSITIONED IN PATIENT-SPECIFIC MEDICATION

• Full-line wholesalers (approx. 100,000 products)

• Primarily a logistics partner not a consulting

partner

• Mandatory legal inventory range

of 14 days

• Intransparent discount structures

• Mainly regional focus

• Primarily manufacturers,

not consulting partners

• Limited range

• Limited range

• Focus on niche segments and special processes

• Limited capacity

• No GMP certification

• Less cost effective manufacturing

Medios is strongly positioned in the competitive environment

more than 200

pharmacies

with clean

room

laboratory

13


Diagram is an example / Source: ABDA * Pharmacies with approved clean room laboratory

Only limited impact from COVID-19 situation due to resilient business model

14

3 1 2 4 Patients Sourcing Manufacturing Distribution & Sales

PHARMACY

• Medios provides specialty

pharma drugs which typically

have a stable demand,

irrespective of overall market

conditions

• Medios targets patients who

suffer from mostly chronical

conditions therefore demand is

typically not affected

• Currently no material impact

on sourcing

• Medios initially doubled

corresponding inventory levels

in order to prevent bottlenecks

• Currently no material impact

on manufacturing

• Medios implemented pre-

cautious safety measures

across manufacturing facilities

• Medios is in constant dialogues

with other manufacturing

companies outside Berlin for

mutual support in order to be

able to react to short-term

production interruptions

• Pharmacies are deemed system

relevant and face only limited

impact from ongoing

lockdowns

• Broad and diversified partner

network ensures delivery

capabilities


Medios closely monitors the COVID-19 situation across all segments to promptly react to new developments

35% 63%

82% 76% 67%

65% 37%

18% 24%

33%

2.8

5.8

8.0 11.0

16.2 17.5-20.5

Proven financial track record with strong profitable growth

Revenue in EUR m

Adj. EBT in EUR m

Pharmaceutical Supply

Patient–specific Therapies

2015*1 2016*1

Key Financials

2017*2 2018*2 2019*2

62% 75%

83% 88%

90%

38% 25%

17% 12%

10%

90 160

254

328

517

610-670

Pharmaceutical Supply

Patient–specific Therapies

Adj. EBT Margin 3.1% 3.6% 3.2% 3.3% 3.1%

Medios Group IFRS

15

2020E*2

2.9-3.1%

Guidance confirmed

Guidance confirmed

*1 2015 and 2016 pro-forma; *2 Adjusted for extraordinary expenses e.g. stock options; *3CAGR = Compound Annual Growth Rate

Medios has a proven growth strategy in place to maintain its leading position as a provider of specialty pharma solutions in Germany

Growth strategy

16

• Currently ~300 pharmacies

covered

• Cover ~500 pharmacies mid-

term

• Cover ~1,000 pharmacies long-

term

Grow customer base and partner

network

Vertical growth driver

• Margin expansion from

increased utilization of existing

capacities

• Increasing market share

improves bargaining power

Leverage economies of scale

Profitability driver

Extend product range and expand

to further indication areas

• Currently >650 specialty

pharma drugs offered

• Extend offering to ~1,000

specialty pharma drugs

• Increase of manufacturing

capacities

Horizontal growth driver

Disciplined buy & build approach to accelerate growth strategy

NUMBER OF PATIENT-SPECIFIC PREPARATIONS

Increase in margins due to significant economies of scale

40,000 60,000 90,000 100,000

2017 2019 2020 Max. potential

at existing sites 2018

Patient-specific Manufacturing: Utilise existing and expand capacities; Scalability of production capacity at existing sites (10 workstations)

17

Growth strategy

*CAGR – Compound Annual Growth Rate

Increase scale through a combination of enhanced product offering and extension of partner network

18

Growth strategy

Partner network

Product mix /

indications ~650 ~1,000

~500

~1,000

Today

Mid-term

Future

~300

MAKE OR BUY

Initiatives to extend partner network

• Cross-selling covering different

indications

• Accessing new partner networks

• Expanding business with existing partner

network

• Expansion of range of indications

• Expansion of manufacturing capabilities

• Investments in proprietary market

intelligence

Initiatives to extend product offering

Medios is playing an active role in the ongoing consolidation process

Growth strategy

19

RECENT M&A TRACK RECORD

Headquartered in Cologne, Germany with

activities across Germany

Acquisition of Kölsche Blister in April 2020

Rationale for acquisition

• Immediate market entry into structurally growing

blistering business

• Expansion of partner-network of specialized pharmacies

• Coverage of a further component in the value chain

• Realize synergy effects e.g. in purchasing, sales and

logistics

Well established GMP* blister** operation

100 customers nationwide: specialized

pharmacies, involved in home care, HIV/

hepatitis, and in individual cases in oncology

TYPES OF POTENTIAL TARGET COMPANIES

3 Innovation /

process

optimization 1 Premium

patient-specific

manufacturers

2 Premium

pharmaceutical

suppliers

• Increase value

creation potential

through vertical

integration

• Invest in process

innovation (e.g. digi-

talization, analytics)

Rati

on

ale

3 • Play an active role in

the consolidation of

the market for

patient-specific

preparations

• Increase capacities for

enhanced production

of individualized

preparations and

additional indications

Rati

on

ale

1 • Increase scale to

become one of the

leading provider of

specialty pharma

solutions in Germany

• Expand partner

network to capitalize

on cross-selling

opportunities

Rati

on

ale

2

GMP: Good Manufacturing Practice **blister: In this process, a patient's medication is put together and packaged in individual portions according to the dosage prescribed by the

doctor

20

Appendix

EXTRACTION OF SAMPLE ANALYSIS CERTIFICATION PROCESS

• Rubber seal of vial is

perforated

• Drug no longer sterile and

therefore useless

• Hours to days until result

• Incoming drug in quarantine

• No batch release until

sucessful test result available

• Release and certification

of incoming drug material

or rejection

• Complete disposal of

test sample

Drug Safety: Traditional drug testing

Research & development

21

MEASUREMENT DATABASE CERTIFICATE

• Measurement by

non-destructive method

• Analytical results available

within less than 3 minutes

• Alignment with Medios

individual Database

• Increase in validity based

on continuously growing

database (intelligent cloud

system)

• Medios allowed to issue

certificates for third parties as

proof of authenticity

Drug Safety: Innovative NIR* Spectroscopy

Research & development

22

* Near-infrared

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