Challenges in southern Europe and how we cope

SPEECH
Date
Speaker
Subject
12 March 2013
Antonio Jordao, Head Southern Europe and General Manager of Vifor Pharma Portugal
Challenges in southern Europe and how we cope with them
The spoken word is valid.
Ladies and Gentlemen,
Southern Europe has been in the news since 2009…
Southern Europe has been in the news in the last few years and not always for good reasons.
When Greece was hit by the financial crisis, a domino effect spread throughout Southern Europe.
The entire region slipped into a situation of significant social and political instability within an
economic downturn.
…and economic downturn has shrunk the pharmaceutical
market by -5% per year since 2010
35'000
- 5,2%
30'000
25'000
CAGR (2010 – 12)
20'000
Italy
-3%
15'000
Spain
-6%
10'000
Greece
-7%
5'000
Portugal -10%
0
2010
ITALY
2011
SPAIN
GREECE
2012
PORTUGAL
3 © Galenica Group 12.3.2013
Values in M EUR
Source: IMS
In this context, the pharmaceutical market was one of the first markets to suffer from austerity
measures; drug expenses are indeed a relevant share of states’ spending.
As a result, the South European retail market has declined by 5% a year since 2010, Portugal and
Greece being the markets with the highest decreases: 10% and 7% respectively.
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Date
12 March 2013
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Subject
Challenges in southern Europe and how we cope with them
…but despite these headwinds, Vifor Pharma has grown
by +20% due to internal and external growth
CAGR (2010 – 12)
Italy
-19%
Spain
+82%*
Greece
+5%
Portugal +9%
Net sales evolution in %
Source: Ex-Vit
* Incl purchase Uriach
4 © Galenica Group 12.3.2013
Contrary to the market trend, Vifor Pharma’s performance was very positive with a 20% growth, not
only due to the acquisition of the additional Primary Care business of Grupo Uriach in Spain end of
2011 but also due to the good performance in Portugal and in Greece.
Portugal
A dedicated team, a diverse portfolio and a long-term
vision have been key for the Portuguese affiliate’s success
‒ Founded in 1954
‒ Broad and diverse portfolio
‒ Hospital, Retail and OTC
‒ Toll manufacturing
‒ In-licensing from 10
international partners
‒ 122 employees
5 © Galenica Group 12.3.2013
OM Pharma Portugal was founded in 1954 and since then it has always had sustainable and
balanced growth, based on a diverse portfolio and strategic partnerships. The affiliate employs
over 120 people, half in sales and the remaining in manufacturing. Toll manufacturing for OM
Pharma Geneva and partners is a relevant business for the Portuguese affiliate. This affiliate joined
Vifor Pharma following the purchase of OM Pharma late in 2009.
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12 March 2013
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Subject
Challenges in southern Europe and how we cope with them
Portugal
Vifor Pharma Portugal has beaten the market and gained
market share since 2010
Vifor Pharma Retail Market Share
in relevant segments
12%
9%
7%
2010
2011
2012
Source: IMS
6 © Galenica Group 12.3.2013
In the market segments in which Vifor Pharma Portugal operates, it has consistently gained market
share, reinforcing its leadership in those segments.
Portugal
In a declining market, Broncho-Vaxom® has expanded its
leadership up to a 51% market share
2010
2011
2012
Broncho-Vaxom®
43%
47%
51%
Ribomunyl®
22%
20%
19%
Paspat
17%
17%
17%
Others
18%
15%
12%
®
7 © Galenica Group 12.3.2013
Source: IMS
Last Update: Dec 12
Market share in net sales
®
One of our major products, Broncho-Vaxom has gained market share in immunomodulators,
reaching 51% in 2012.
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12 March 2013
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Subject
Challenges in southern Europe and how we cope with them
Portugal
In a stable market, Maltofer® is growing and has
reinforced its leadership up to a 49% market share
Maltofer
®
2010
2011
2012
47%
47%
49%
Legofer®
31%
29%
27%
Ferro Gradumet®
7%
8%
8%
Others
15%
16%
16%
Source: IMS
Last Update: Dec 12
Market share in net sales
8 © Galenica Group 12.3.2013
®
Likewise Maltofer , which Vifor Pharma has been promoting in Portugal since 2011, reinforced its
leadership, reaching a 49% market share.
Portugal
Ferinject® is growing fast and gaining momentum,
reinforcing Vifor Pharma i.v. iron market leadership
CAGR: + 2,2%
15%
27%
50%
41%
30%
32%
20%
47%
37%
2010
2011
ISS
Venofer
2012
Ferinject
Net sales evolution in %
Source: IMS
9 © Galenica Group 12.3.2013
®
Ferinject has 50% market share in i.v. iron in Portugal and Vifor Pharma now has 80% market
share overall in iron products.
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12 March 2013
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Subject
Challenges in southern Europe and how we cope with them
España
In a declining retail market (-9%), Vifor Pharma España is
growing (+6%)
‒ Acquisition from Uriach
in December 2011
‒ Retail and Hospital
portfolio
‒ Key partnerships to
support retail team
‒ 144 employees
10 © Galenica Group 12.3.2013
In December 2011 we acquired all of the outstanding shares of Vifor Uriach Pharma SL, a joint
venture with its Spanish partner Grupo Uriach, as well as Grupo Uriach’s Primary Care Business
and renamed the company Vifor Pharma España.
In 2012, despite the market contraction, Vifor Pharma España had a 6% growth on a like-for-like
basis, which is undoubtedly a good performance.
Vifor Pharma España has144 employees and a diverse portfolio, resulting from strong relationships
with strategic partners.
España
Ferinject® is growing fast – Vifor Pharma i.v. iron franchise
has clear market leadership with a volume share of 62%
11%
17%
22%
37%
40%
2%
1%
43%
37%
44%
1%
43%
2010
2011
ISS
11 © Galenica Group 12.3.2013
COSMOFER
VENOFER
2012
FERINJECT
Volume in T 100mg equiv
Source: Farma & Cia
Vifor Pharma España has clear market leadership in units of the i.v. iron market with over 62%
®
®
market share. Ferinject is growing quickly while Venofer has maintained close to 40% share.
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12 March 2013
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Subject
Challenges in southern Europe and how we cope with them
España
Vifor Pharma España is just 1 year old and has achieved
its main goal – to obtain Ferinject® retail status
Ministry of Health
“Respecto al medicamento FERINJECT® 50mg/ml, si
bien es una medicamento calificado como uso
hospitalario, se recomienda que su uso también pueda
realizarse en centros de diálisis u otros centros
(atención primaria, hospital de día,...) donde se
necesite por razones de urgencia.”
12 © Galenica Group 12.3.2013
At the end of last year, Vifor Pharma España was granted the authorisation to market/use
®
Ferinject in primary health care centers in coordination with reference hospitals by the Spanish
authorities.
It is an important and fundamental milestone for our business in Spain and mainly for Spanish
®
patients, since Ferinject is the first and only i.v. iron available in retail settings.
España
Ferinject® retail approach will tap oral iron market potential
Oral iron market (100%)
3144
PC public
centers
256
hospitals
Access to 41% oral iron retail market
91
Hospitals
buying
Ferinject® w/o
restrictions or
restricted to
hosp. day care,
CHF, CKD, GI
1156
PC
centers
coverage
need
(= 41%
total oral
iron mkt.)
Covering 91 hospitals = 1156 PC centres, we have access
13 © Galenica Group 12.3.2013
to 41% of total oral iron market in retail
®
There are many potential growth opportunities with Ferinject having been approved in the retail
setting.
In Spain there are 3,144 public health care centers corresponding to 256 hospitals.
®
Ferinject is now approved in 91 hospitals corresponding to 1,156 health care centers; all in all
these centers correspond roughly to 41% of the i.v. iron market.
If we only consider patients with severe anaemia and if we only manage to capture 10% of these
®
patients in the first year, then in 2013 we could potentially double our Ferinject sales. This will
®
certainly be a challenge in the current environment and we have to explain how using Ferinject
will save the system money while improving the quality of patient care.
Date
12 March 2013
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Subject
Challenges in southern Europe and how we cope with them
Italy
Vifor Pharma Italia is setting the stage for long term
success
On the 29th of January 2013 at
the Italian Senate in Rome,
Vifor Pharma supported the
launch of the “Anemia Alliance
Italy” under the patronage of
Senator Tomassini, raising the
awareness of anaemia in Italy.
14 © Galenica Group 12.3.2013
Last but not least: Italy
Italy is the biggest pharmaceutical market of the region and, therefore, a key target market for us.
®
We set up a small affiliate to develop our business and prepare for the launch of Ferinject .
We are very proud to announce that in January we supported the launch of the “Anemia Alliance
Italy” at the Italian Senate under the patronage of Senator Tomassini, raising the awareness of iron
deficiency anaemia with authorities, health care professionals and the public in general.
This initiative clearly shows that Vifor Pharma wishes to continue in Italy the success it achieved in
other countries of the region.
Despite heavy headwinds,
Vifor Pharma Southern Europe
is taking off…
…because planes always take
off against the wind.
15 © Galenica Group 12.3.2013
Vifor Pharma has taken off in Southern Europe despite heavy headwinds. That said, we are
confident we continue to fly true even if we occasionally face some turbulence!