Origo kapitalmarkedsdag Proinvestor april 2012
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Transcript of Origo kapitalmarkedsdag Proinvestor april 2012
HUMAGEN PIPETS
MEDICULTMEDIA
MIDATLANTICDEVICES
ORIGIO a/s- A world leader in Assisted Reproductive Technology Jesper Funding Andersen, CEO
ProInvestor, Life Science Seminar 2012April 11, 2012
www.origio.com
Ticker (OSE): ORO
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Forward-Looking Statements
This presentation includes forward-looking statements regarding ORIGIO a/s, including projections and expectations, which involve risk and uncertainty. Such statements are included without any guarantee as to their future realization. Although ORIGIO believes that the expectations regarding the Company reflected in such forward-looking statements are based on reasonable assumptions, no assurance can be given that such projections will be fulfilled. Any such forward-looking statement must be considered along with the knowledge that actual events or results may vary materially from such predictions due to, among other things, political, economic, financial or legal changes in the markets in which ORIGIO does business, and competitive developments or risks inherent to the Company’s business plans. Many of these factors are beyond ORIGIO’s ability to control or predict. Given these uncertainties, readers are cautioned not to place undue reliance on any forward-looking statements. The Company does not intend, and does not assume any obligation, to update the forward-looking statements included in this presentation as of any date subsequent to the date hereof.
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ORIGIO at a glance A world leader in Assisted Reproductive Technology (ART) solutions
• ART – a highly attractive growth market• Global ART market holds large opportunities• Number of mega trends set to accelerate growth in future
• ORIGIO – The largest focused ART player world-wide • A med-tech company with attractive financial performance• Broad product portfolio (consumables and equipment) for ART
treatment• Direct sales in more than 26 markets and strong network of
distribution partners• Strong pipeline of R&D projects with focus on improving “Baby-
take-home” rate
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Our Vision/Mission
Vision: To make the #1 dream of every infertile couple come true
Mission: We deliver leading, innovative ART solutions to the benefit of families
ARC
Our products play an important role for a baby born every 4 minutes.
More than 150,000 babies/year are born using ORIGIO products.
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Agenda
Assisted Reproductive Technology – a highly attractive growth market
ORIGIO – a world leader in Assisted Reproductive Technology
Summary
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Megatrends to accelerate growth in ART
Total fertility rates too low in many developed
countries to sustain population
Population growth (in less developed
countries) → more infertile couples
Wealth creation in less developed
countries
Sperm quality on decline
Untreated sexually transmitted infections can result in infertility
Increased use of fertility preservation (disease or
oocyte banking)
Increasing maternal age at first pregnancy
Obesity (and eating disorders) reducing
female (and male) fertility
= Illustrative graphs on the following slides
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Low total fertility rates put pressure on the demographic balance
Source: CIA – The World Factbook, 2011 estimate
No
. o
f c
hil
dre
n b
orn
pe
r fe
ma
le a
ge
d 1
5-4
9 y
ea
rrs
…..a country has to score a balance of 2.1 to reproduce itself. If not, it can (1) ’accept’ population decline
(2) ’open up borders’ (3) ’incentivise’ - IVF can make a difference
Demographic balance 2.1
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Maternal age at first pregnancy increasing
Average age of mother at first birth
Source: Eurostat (2010) and United Nations Statistical Division (2010) and National Statistical Offices
Female fertility drops sharply from early 30’ies
Source: 2008 Assisted Reproductive Technology Success Rates. US National Summary and Fertility Clinic Reports
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The middle- and upper classes in less developed countries are growing rapidly.Hence, the number of couples that can afford IVF treatments
will grow at a fast pace
Wealth creation in less developed countriesIndia - example of an emerging market opportunity
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Large potential for improving IVF success rate
88%81%
34%28%
21%
0%10%
20%30%
40%50%60%
70%80%
90%100%
Retrieval Transfer Clin.pregnancy
Live birth Singleton lifebirth
US success rates for fresh non-donor eggs – per cycle started
Source: CDC and HFEA 2005 data (published 2008)
UK data (fresh and frozen, donor or own eggs): 22% 16%
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Agenda
Assisted Reproductive Technology – a highly attractive growth market
ORIGIO – a world leader in Assisted Reproductive Technology
Summary
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ORIGIO - the largest focused ART player world-wide
ART media, pipets, needles/
catheters, devices,
equipment
ART media, pipets,
needles/ catheters
ART media, pipets, needles/
catheters, devices, incubator
ART media, needles/ catheters
ART media, needles/ catheters
ART media, workstations
IVF products turnover – 2011 estimates
Source: ORIGIO estimate. Cook, Irvine and Sage are all parts of larger conglomerates
The largest players within hormones for
fertility treatment includeMerckSerono, Ferring
and Merck
Product groups
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ORIGIO’s consistent growth strategyTransformation along 3 key dimensions
Regulatory demands on IVF devices increases strongly
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Strong geographical presence
Key geographical steps
• 2005: Italy• 2005: Germany (DACH)• 2005(-10): Australia• 2006: Spain• 2006(-08): USA• 2008: Benelux• 2008: China• 2010: Russia• 2012: Japan• 2012: India
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Globally leading sales infrastructure with own presence in key IVF markets… and strong network of distribution partners covering 100+ countries
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ORIGIO sells direct in most key markets
Source: ORIGIO estimate
ORIGIO sells direct in more than 26 markets representing, in total, around ⅔ of the global IVF market
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Product range expanded One company with 3 strong product brands
ORIGIO MidAtlantic Devices: Provides innovative devices, equipment, and services to IVF labs
ART ’Total’ Supplier – US #1ART Disposables - Global
ORIGIO MediCult Media: Leads the way in the development and provision of specialized and innovative ART media.
ART Media – Global #1
ORIGIO Humagen Pipets: Focuses on the creation of the highest quality specialty pipets and microtools for IVF
ART Micropipets – Global #1
Global equipment line after 51% stake in ORIGIO ScanLab Equipment
Acquired 100% of US-based PMD containing state-of-art automation technology for micropipettes
Broad product portfolio fulfilling most IVF laboratory needs2007
2008
2010
2010
Acquired MDT Artworks B.V. – Dutch manufacturer of IVF needles and catheters
2011
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Enlargement of ORIGIO’s product portfolio during 2011Embryo transfer catheters and oocyte retrieval needles
Ovarian hormone stimulation
Egg retrieval
Fertilization(IVF or ICSI)
Embryoculture
Cryo preservation
Embryo transfer catheters
Embryo transfer
Oocyte retrieval needles
Previous ORIGIO product offering(media, pipets, devices, equipment)
Current ORIGIO product offering(fulfilling most IVF laboratory needs)
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Strong ART pipeline – focus on improving “Baby-take-home” rate
Preclinical documentation (H2 2012)
Pilot human implantation data (H2 2012)
Bovine data (H1 2012)
Exploratory human data(Q2/Q3 2013)
FDA clearance (H2 2012)*
Next milestoneProductType RegulatoryProof-of-concept
Clinical
EmbryoSure®
SMARTStart™
EmbryoGen®
Iloprost
GM-CSF day 5
Culture media, day 3
Culture media, day 5
Culture media, day 5
EmbryoSelection
Microfluidics
*Launched in Europe, Asia, Middle East and Canada in H2 2011. Obtained CE-mark in August 2011
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Live birth rates support significant effect from EmbryoGen® in patients with previous miscarriage
Average number of embryos transferred: EmbryoGen®: 1.55; Control 1.56Number of transfer cycles: EmbryoGen®: 142; Control 147Twinning rate similar in the two groups
29.6
17.4
23.1+28%
+28%p=0.02
p=0.03
Live birth rate in patients with previous miscarriage
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22.3
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EmbryoGen® succesfully launched in Q3 2011
• EmbryoGen® successfully launched and already sold in more than 40 countries throughout Europe, Asia, Middle-East and Africa*
• In general, at least 20% of all pregnancies end in miscarriage, and the primary target group for EmbryoGen® is thus believed to be more than 200,000 cycles per year
• Culture media makes up <2% of the IVF treatment, but impacts the “Baby-take-home” rate significantly
• EmbryoGen® can obtain premium pricing and still reduce the average cost per child conceived via ART due to lower average number of cycles to become pregnant
• ORIGIO has world-wide exclusive rights for human use of ART media containing GM-CSF
*Launch in the US expected in the second half of 2012
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Growth in key operational financials 2005 – 2011
Revenue EBITDA before special items
CAGR: 31%
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• Strong revenue growth
• Increasing EBITDA-margin
• Positive operating cash flow despite
high growth
Operating cash flow
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ORIGIO group growth drivers
Regions
DKK million
FY
2011
Organic growth*
2011
Europe 162 13%
Americas 99 18%
ROW 109 36%
Total 370 20%
Products
DKK million
FY
2011
Organic growth*
2011
Disposables 298 13%
Equipment 72 60%
Total 370 20%
* Constant currency
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Recent Shareprice developmentORIGIO vs. Indices
• Listed on the Oslo Stock Exchange since 1996
• Market cap of approximately NOK 600 million
• Included in the liquidity category ‘OB Match’• Comprising shares with a minimum of 10
official trades per day
• Approximately 1,600 shareholders including several Norwegian (and one Danish) Blue Chip institutional investors
• Orkla• William Demant Invest• Skagen Vekst• Storebrand • MP Pensjon
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Agenda
Assisted Reproductive Technology – a highly attractive growth market
ORIGIO – A world leader in Assisted Reproductive Technology
Summary
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ORIGIO - a med-tech company well positioned for continued profitable growth
• Assisted Reproductive Technology – a highly attractive growth market
• World leading, focused ART player with broad product portfolio, direct
presence in key markets and strong pipeline of new technologies
• Sound financial platform and solid financial outlook for 2012• Revenue of approximately DKK 450 million• Organic growth in constant currencies of minimum 10%• EBITDA margin before special items of 15-17%
• Consistent strategic focus with a clear growth strategy
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“At the end of the day, it’s all about life; the opportunity for helping IVF professionals
to create new life for families. Life is everything. That's what we stand for “