Investor Presentation - Seeking Alpha · 01/02/2016 · Investor Presentation January 11, 2016...
Transcript of Investor Presentation - Seeking Alpha · 01/02/2016 · Investor Presentation January 11, 2016...
Investor Presentation
January 11, 2016
Albert D. Friesen, PhDChair & CEO
Dawson ReimerPresident & COO
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Disclaimer
This presentation is for informational purposes only and should not be considered as an offer
to buy or sell securities. No stock exchange has either approved or disapproved of the
information that is contained in this presentation. This presentation may contain
forward-looking statements within the meaning of Canadian Securities legislation and the
forward-looking statements contained herein are made as at the date of this presentation and,
accordingly, are subject to change after such date. Undue reliance should not be placed on
such statements. These statements involve a number of risks and uncertainties including
statements regarding the outlook for Medicure Inc., business and operational results. By
nature, these risks and uncertainties could cause actual results to differ materially from what
has been indicated. Factors that could cause actual results to differ materially from any
forward-looking statement include, but are not limited to, product recalls, competition from
similar products and other factors including those risks and uncertainties identified above,
and those contained in the Company’s most recent MD&A and Form 20F.
Medicure Inc. undertakes no obligation to update publicly or otherwise revise any
forward-looking information as a result of new information, future results or other
such factors which affect this information, except as required by law.
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Aggrastat Prescribing Information
Indication: AGGRASTAT is indicated to reduce the rate of thrombotic cardiovascular events (combined endpoint of death, myocardial infarction, or refractory ischemia/repeat cardiac procedure) in patients with non-ST elevation acute coronary syndrome (NSTE-ACS).
Dosage and Administration: High-Dose Bolus Regimen:
Administer intravenously 25 mcg/kg within 5 minutes and then 0.15 mcg/kg/min for up to 18 hours. In patients with CrCl ≤60 mL/min, use the full bolus and halve the maintenance infusion.
Contraindications: Known hypersensitivity to any component of AGGRASTAT; History of thrombocytopenia with prior exposure to AGGRASTAT; Active internal bleeding, or history of bleeding diathesis, major surgical procedure or severe physical trauma within previous month
Warnings and Precautions: AGGRASTAT can cause serious bleeding. If bleeding cannot be controlled discontinue AGGRASTAT; Thrombocytopenia: Discontinue AGGRASTAT and heparin
Adverse Reactions: Bleeding is the most commonly reported adverse reaction
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Medicure Inc.
Core Competencies:
Unique, head-office based sales team One of the only hospital cardiology
pharma sales teams in the U.S.
A specialty pharmaceutical company focused on the development and commercialization of
therapeutics for the U.S. hospital market.
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Net Revenue Growth: 2012 – 2015 (CDN)
ActualQ1-Q32015
-
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
2012 2013 2014 2015
$ Canadian
Unaudited*
Net revenue for the three and twelve month period ended December 31, 2015 are preliminary and are based on
the best information currently available and subject to the completion of the financial statements for the period.
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EBITDA Growth: 2012 – 2015
ActualQ1-Q3 2015
(2,000,000)
(1,000,000)
-
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
2012 2013 2014 2015
Adjusted EBITDA*
The Company defines EBITDA as "earnings before interest, taxes, depreciation, amortization and other income or expense" and Adjusted EBITDA as "EBITDA adjusted
for non-cash and one-time items". The terms "EBITDA" and "Adjusted EBITDA", as it relates to the three and nine months ended September 30, 2015 and August 31,
2014 results prepared using International Financial Reporting Standards ("IFRS"), do not have any standardized meaning according to IFRS. It is therefore unlikely to be
comparable to similar measures presented by other companies.
$ Canadian
Q1 – Q3
Only
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Acute cardiovascular hospital product
I.V. platelet inhibitor; binds the GP IIb/IIIa receptor
Indicated for Acute Coronary Syndrome (ACS)
41% reduction in death and MI in high-risk patients*
Oct 2013: FDA Approved High Dose Bolus
Patented until June 2023
Sept 2015: sNDA filed for STEMI label expansion
* PRISM PLUS Investigators, N Engl J Med. 1998:1488-1497.
8* Gross Sales before discounts. Source: Wolters Kluwer Health + 10% for non-reporting hospitals
Commercial Product: Aggrastat®
United States GP IIb/IIIa MarketUSD $274.5 million, July 2014 – June 2015
Launched by Merck in 1998
Is the #1 in class ex-USA
U.S. rights acquired by Medicure in 2006
Medicure obtained broader FDA
approval in October 2013
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Co
mp
etitive
Po
sitio
nin
g o
f A
gg
rasta
t
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Weekly Bag Demand (“Weekly Scripts”)
0
200
400
600
800
1000
1200
1400
1600
Rolling 3 Month Average Bag DemandB
ag
s / W
eek
Label
Change Oct 2013
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$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
12-hr Infusion (90 kg patient)
Required
Units:
Aggrastat: 25 µg/kg bolus + 0.15 µg/kg/min
Integrilin: 2x180 µg/kg bolus + 2.0 µg/kg/min
Reopro: 0.25 mg/kg bolus + 0.125 µg/kg/min
US $; Based on WAC pricing as of January 2015. Cost of heparin has not been included. Cost comparisons do not imply comparable efficacy, safety or product interchangeability. Aggrastat,
Reopro (abciximab), and Integrilin (eptifibatide) have not been compared in head-to-head clinical trials. Please refer to prescribing information for approved indications for all products.
US healthcare system is
financially stressed
Integrilin often one of the largest
pharmacy line items
Typical hospital savings:
$50,000 - $500,000 / year
GPI Treatment Costs in the US
$3,126.12Reopro
$1,435.78Integrilin
$517.81Aggrastat
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Building a specialty
pharmaceutical portfolio focused
on the U.S. hospital market
Leveraging our sales
infrastructure
Invest in reduced risk - high
reward development projects
Maintain focus on profitability
Growth & Business Development
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Apicore Transaction: July 2014
5.3%Equity
Equity investor Loan + Warrants
FoundersMinority Shareholder
Fixed Price OptionFixed Price Option
a private manufacturer of complex active pharmaceutical ingredients (APIs) and developer of generic products (ANDAs)
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API Manufacturer & ANDA Developer
Complex synthetic chemistry
Early & “first to file” generics
Secure, high quality production
History:
Founded in 2004 (New Jersey)
First FDA approval in 2006 (Granisetron)
Expanded Indian facility in 2013-14
Total 200 employees
>80 Products
>50 Customers (Mylan, Teva, Sandoz, etc)
Year Revenue (USD)
2012 $5 Million
2013 $10.3 Million
2014 $14.3 Million
Apicore Background
Somerset, New Jersey
Vadodara, Gujarat, India
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Key Financial Info – MPH: TSXV
*Removing non-cash stock-based compensation expense and one-time items (SNDA Filing) in the EBITDA
Cap Structure As of January 8, 2016
Basic Total 14,445,168
Fully Diluted Total 16,740,213
Share Price C$4.74
Market Cap C$68.5 M
Recent Financial Highlights
Q4 Net Revenue Est. $9.3 M
Q1-Q3 Net Revenue $12.6 M
Q1-Q3 *Adj.EBITDA $4.0 M
2016 Focus
Continue to grow Aggrastat revenue
Diversify through product & business development
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Business Vision
To build a large, stable, specialty pharmaceutical company
To further expand Aggrastat revenue
To expand revenue with new commercial products
To diversify company value with new products and business areas
Aggrastat Quarterly Net Product Sales (CDN Millions)
-
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
10,000,000
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2012 2013 2014 2015
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Aggrastat Prescribing Information
Indication: AGGRASTAT is indicated to reduce the rate of thrombotic cardiovascular events (combined endpoint of death, myocardial infarction, or refractory ischemia/repeat cardiac procedure) in patients with non-ST elevation acute coronary syndrome (NSTE-ACS).
Dosage and Administration: High-Dose Bolus Regimen:
Administer intravenously 25 mcg/kg within 5 minutes and then 0.15 mcg/kg/min for up to 18 hours. In patients with CrCl ≤60 mL/min, use the full bolus and halve the maintenance infusion.
Contraindications: Known hypersensitivity to any component of AGGRASTAT; History of thrombocytopenia with prior exposure to AGGRASTAT; Active internal bleeding, or history of bleeding diathesis, major surgical procedure or severe physical trauma within previous month
Warnings and Precautions: AGGRASTAT can cause serious bleeding. If bleeding cannot be controlled discontinue AGGRASTAT; Thrombocytopenia: Discontinue AGGRASTAT and heparin
Adverse Reactions: Bleeding is the most commonly reported adverse reaction
Thank you.Contact a Product Specialist
1.800.509.0544
For More Informationwww.medicure.com www.aggrastat.com
Investor [email protected] 1.888.435.2220 (Ext. 231)