ADVANZ PHARMA Corporate Summary
Jefferies Healthcare Conference November 2019
Important Notices
2
Notice Regarding Forward-Looking Information
Some statements and information contained in this presentation are forward‐looking statements or forward-looking information within the meaning of applicable Canadian securities laws (collectively, “forward-looking statements”). Recipients of this
presentation are cautioned that forward-looking statements are inherently uncertain and involve risks and uncertainties that could cause actual results to differ materially. Such statements include comments regarding ADVANZ PHARMA and its business,
which may include, but are not limited to, statements with respect to: the ability of ADVANZ PHARMA to execute its strategic pathway to growth underpinned by product pipeline and M&A opportunities, and the ability to acquire and profitably exploit
any of such products and M&A opportunities; the company’s ability to drive value that is not dependent on price optimization; ADVANZ PHARMA’s ability to optimize pricing of its products; ADVANZ PHARMA’s optimization of products via life cycle
management; the company’s ability to drive growth and profitability; the ability of the company to move up the value curve and become a leading speciality pharmaceutical platform with advanced commercial capabilities; the ability of ADVANZ
PHARMA to extract additional value from future product developments and acquisitions based on Europe’s macroeconomic characteristics and regulatory synergies; ADVANZ PHARMA’s ability to expand its product portfolio to deliver mid term value
and long term growth, through pipeline, optimization and partnerships; ADVANZ PHARMA’s ability to deliver a lean and fully leveraged operating model in all areas; ADVANZ PHARMA’s effective utilization of its advanced commercial platforms in the UK,
Ireland and the Nordics; ADVANZ PHARMA’s ability to seek and secure both legacy brands and niche generics on a global scale, while acquiring advanced commercial capabilities in Western Europe to deliver short term growth and mid term value; the
re-energizing of the company through strengthened strategic clarity, culture, brand and leadership; the company’s ability to leverage existing market presence to extract value from the licensing opportunities; the identification of pipeline projects
through market knowledge, distributor relationships and market data analysis; the leveraging of market knowledge and insights to identify attractive market opportunities to launch generic versions of well-established brands in niche areas; ADVANZ
PHARMA’s ability to leverage external partners for product development; the launch of new formulations, dosage forms or strengths of existing products; leveraging the established brand and track record of safety of ADVANZ PHARMA; the company’s
ability to identify unmet market needs through dialogue with pharmacies, physicians or hospitals; continuation and expansion of ADVANZ PHARMA’s relationship with pharma partners and CMO networks; ADVANZ Pharma’s ability to compete with other
pharma companies in niche established medicines; the realization by ADVANZ PHARMA of any or all of its active M&A opportunities; ADVANZ PHARMA’s ability to sign new pipeline contracts by the end of the year; the optimization of the company’s
operational cost base and elimination of the duplication at the executive level; the company’s ability to complete the implementation of corporate cost optimization plan and achieve annual cost savings in the amounts anticipated; ADVANZ PHARMA
becoming the leading platform for niche established medicines with advanced commercial capabilities throughout Western Europe; ADVANZ PHARMA being insulated from adverse trends in the US specialty pharma market; the continuation of
relationships with contract manufacturing organizations; implementation of the company’s strategy including expanding the product portfolio, delivering a leveraged operating model, seeking and securing acquisition opportunities and re-energizing the
company, the ability of the company to complete any near term acquisition opportunities; the ability of ADVANZ PHARMA to enhance its commercial footprint, including the ability of the company to drive volume growth, enhance its profile for
established brands vendors and/or become a preferred partner for innovative medicines; ADVANZ PHARMA’s long-term growth strategy, expectations for YoY decline, potential for growth through targeted promotion, highly scalable business with strong
operating leverage; ADVANZ PHARMA’s outlook for the remainder of 2019 and subsequent years; and the ability of ADVANZ PHARMA to execute and deliver on business plans and growth strategies. Often, but not always, forward‐looking statements and
forward‐looking information can be identified by the use of words such as “plans”, “is expected”, “expects”, “scheduled”, “intends”, “contemplates”, “anticipates”, “believes”, “proposes” or variations (including negative and grammatical variations) of
such words and phrases, or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Such statements are based on the current expectations of ADVANZ PHARMA’s management, and are
based on assumptions and subject to certain risks and uncertainties. Although ADVANZ PHARMA’s management believes that the assumptions underlying these statements are reasonable, they may prove to be incorrect. The forward‐looking events and
circumstances discussed in this presentation may not occur by certain dates or at all and could differ materially as a result of known and unknown risk factors and uncertainties affecting ADVANZ PHARMA. There can be no assurance that future
developments affecting ADVANZ PHARMA will be those anticipated by management. The forecasts contained in this presentation constitute management's current estimates, as of the date of this presentation, with respect to the matters covered
thereby. ADVANZ PHARMA expects that these estimates will change as new information is received and that actual results will vary from these estimates, possibly by material amounts. While ADVANZ PHARMA may elect to update these estimates at any
time, the company does not undertake to update any estimate at any particular time or in response to any particular event. Recipients of this presentation and others should not assume that any forecasts in this presentation represent management's
estimate as of any date other than the date of this presentation.
Notice Regarding Non-IFRS Measures
Certain financial data included in this presentation, such as Adjusted EBITDA, Adjusted Gross Profit, LTM Revenue, LTM Adjusted EBITDA, Cash Conversion %, Net Leverage, Free Cash Flow, are “non-IFRS measures”. These measures have been defined in this
presentation, or in ADVANZ PHARMA’s most recent management’s discussion and analysis, filed on sedar.com. These measures are not recognized measures under International Financial Reporting Standards (“IFRS”) and do not have a standardized
meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. These measures are provided as additional information to complement IFRS measures by providing further understanding of the
Company’s results of operations from management’s perspective. Accordingly, they should not be considered in isolation nor as a substitute to the Company’s financial information reported under IFRS. Management uses non-IFRS measures to provide
supplemental information regarding the Company’s operating performance and thus highlight trends in the Company’s core business that may not otherwise be apparent when relying solely on IFRS measures.
Future-Oriented Financial Information
To the extent any forward-looking statements in this presentation constitute “future-oriented financial information” or “financial outlooks” within the meaning of applicable Canadian securities laws, such information is being provided to demonstrate the
potential benefits of the company and the recipient is cautioned that this information may not be appropriate for any purpose and the recipient should not place undue reliance on such future-oriented financial information and financial outlooks. No
representation or warranty is given, and no liability is accepted, as to the achievement or reasonableness of any projections, forecasts, estimates, or statements comprising future-oriented financial information or financial outlooks contained, or referred
to, in this presentation and nothing in this presentation is or should be relied on as a promise or representation as to the future. Future-oriented financial information and financial outlooks, as with forward-looking statements generally, are, without limitation,
based on the reasonable assumptions of management of the Company and subject to the risks set out above under the heading “Notice Regarding Forward-Looking Information”.
Notice Regarding Basis of Information
This document, which is personal to the recipient, is issued by ADVANZ PHARMA on a confidential basis solely for the purposes of preliminary discussions between the recipient and ADVANZ PHARMA (the “Discussions”). This document has been prepared
by ADVANZ PHARMA and not by any other person and is furnished to you by ADVANZ PHARMA solely for your information. Recipients of this document further agree to use and apply the confidential information solely for the purposes of the Discussions
and for no other purpose and that at no time will the recipient share the confidential information with any other person without ADVANZ PHARMA’s prior written consent. This document (together with any further information which may be provided to the
recipient) is made available on the condition that it is for use only by the recipient and shall not be passed on to or shared with any other person or reproduced in whole or part, and shall be returned along with any other copies at any time at the request
of any member of the ADVANZ PHARMA Group (as defined below).
No representation or warranty, express or implied, is made by ADVANZ PHARMA or any of its associates, affiliates, subsidiary undertakings or parent entities or subsidiary undertakings of such parent entities (collectively, the “ADVANZ PHARMA Group”) or
any of the respective directors, officers, employees, representatives, advisers or agents of the members of the ADVANZ PHARMA Group as to the fairness, accuracy or completeness of the information, views, expectations or opinions contained in this
document, and no liability whatsoever is accepted by any such person in relation to any such information, view, expectation or opinion. In furnishing this document, ADVANZ PHARMA and its directors, officers, employees, representatives, advisers and
agents undertake no obligation to provide the recipient with access to any additional information or to update this document or additional information or to correct any inaccuracies therein which may become apparent.
This document does not constitute a prospectus or an offer or invitation for the sale or purchase of, or constitute an offer to sell or solicitation of an offer to buy, any shares or other securities in, or any underlying assets of, any member of the ADVANZ
PHARMA Group and does not constitute any form of commitment on the part of any member of the ADVANZ PHARMA Group. Neither this document, nor any other written or oral information made available to any recipient, its agents or its advisers, will
form the basis of any contract or commitment whatsoever. Any proposal regarding a possible transaction between ADVANZ PHARMA and the recipient will only give rise to any contractual obligations on the part of such member of the ADVANZ PHARMA
Group when a definitive agreement has been executed. Members of the ADVANZ PHARMA Group will accept only these obligations which may be set forth in such definitive agreement. The recipient of this presentation is solely responsible for
conducting its own review and analysis of the information contained in this presentation and should consult its own advisers as to operational, legal, tax, accounting and other issues for considering a possible transaction with ADVANZ PHARMA.
In no circumstances will any member of the ADVANZ PHARMA Group be responsible for any costs or expenses incurred by any recipient in connection with any appraisal or investigation of any member of ADVANZ PHARMA Group or for any other costs
and expenses incurred by any recipient.
Our Vision
3
The leading platform for Niche Established Medicines, with advanced commercial capabilities throughout
Western Europe
The Leading Global Platform for Niche Established Medicines
4
Growth Outlook
Underpinned by 3
Strategic Pillars
Attractive Financial
Profile
Leading Global
PlatformGlobal footprint positions us as the partner of choice for mature brands and niche differentiated generics
Lean, asset-light operating model supported by the differentiated India Centre of Excellence
Diversified portfolio of niche established medicines with decades of prescription history and proven safety profile
2
3
1
Attractive growth prospects underpinned by highly active Business Development function along with best-in-class profitability and cash conversion8
Deep pipeline of ongoing product acquisition opportunities, supported by strong relationships with Large Cap Pharma, and an excellent Business Development and integration function
Strong and promising pipeline of niche and differentiated generic medicines from on-going development and in-licensing Business Development activities
5
4
Corporate M&A focused on further developing advanced commercial capabilities in Western Europe6
Skilled Management
Team
Experienced management team with proven M&A capabilities and strong relationships with Large Cap Pharma
7
Note: “Best-in-class” based on Management’s experiences and interactions with other companies
Nitrofurantoin
10%
Zonisamide
8%
Fusidic Acid
6%
Hydroxychloroquine
6%
Codeine Phosphate
5%
>50 years
71%
30-50 years
14%
<30 years
15%
Highly Diversified Portfolio Of Niche Established Medicines
5
Diversified Portfolio Across 180+ Molecules
Established Brands with Proven Safety and
Long-Term Prescription History
1
Revenue Breakdown by Molecules2019
180+Molecules
Years Since Launch Date(1)
Top 15 Molecules
Injectables
18%
Oral Modified Release
9%Ophthalmic
6%Oral Liquid
5%
Topical
4%Others
4%
Oral Solid
54%
Revenue Breakdown by Formulation2019
Differentiated and Complex Formulations
~46%
differentiated
formulations –
Difficult to
replicate
900+SKUs
Revenue Breakdown by SKUs2019
Product 1- 8%
Product 2- 6%
Product 3 - 3%
Product 4 - 3%
Product 5 - 3%
Portfolio of Molecules Split Across 900+ SKUs
1. Top 15 molecules represent ~60% of revenue
Global Product Portfolio Marketed Across 90+ Countries
6
Strong brand equity in
multiple markets
Global, highly diversified
portfolio
Global commercial
capabilities
Decades of prescription
history
• 113 molecules sold to pharmacies and hospitals
• Leading player with strong commercial capabilities and market insights
• Targeted promotion activities to key decision makers
• 52 molecules sold across 15 countries
• Acquisition strategy focused on expanding footprint and enhancing commercial capabilities across Europe
• Nordics represent largest segment In Europe (31% of revenues), followed by Southern Europe (28%)
• Portfolio comprising 14 key brands and 6 authorized generics
• Highly cash generative
• Stable revenues, driven by patient brand loyalty
KeyCharacteristics
• Highly diversified business, comprising 87 molecules, with predictable cash flow generation
• Predominantly branded markets with strong brand loyalty
UK and Ireland Europe RoWNorth America
RoW
16%
2019F Revenue Share (%) /
2019F Revenue Breakdown by Molecules (%)
23%
11%
10%8%7%
UK&I
44%
Well diversified portfolio supported by global commercial capabilities
EUR
14%
NA
26%
19%
10%
8%5%4%
13%
13%
11%
9%6%
31%
22%13%
10%
8%
Scale and Differentiated Profile Positions Us as the Partner of Choice
7
2
Full geographic reach and broad commercial capabilities
Best-in-class onboarding, tech transfer and product management skills
Strong established industry relationships and reputation
Prior experience with product vendors
Excellence in execution
UK & I
EU
NA
RoW
Select Partnership
Examples
Our Global Footprint and Commercial Capabilities…
…Provides a Competitive Advantage in Large Cap Pharma Product Divestment Processes
Our Differentiated Proposition
We provide a global and reliable platform for both large cap divestitures
as well as licensing and development partnerships
Product Acquired Fucithalmic Salagen / Panretin Erythrocin / Akineton /
Transact
Hygroton /
Cafergot
Neomercazole
Centre of Excellence
UK&I
44%
EUR
14%
NA
26%
RoW
16%
Revenue by Region(1)
Global Footprint Positions Us as Partner of Choice for Established Niche Medicines
8
• Global network covering over 90 countries
• ~95 commercial employees
• Direct presence in the UK, Ireland, Nordics, US and Australia
• Strong external distributor partnerships managed through a team of area managers located in France, Italy, Latvia, Algeria, South Africa, Singapore and Argentina
Geographic Presence
CorporateHead Office
Chicago
Ireland
Jersey
France
Benelux
Southern Europe
Maghreb/Africa
Middle East
Nordics
CIS/CEE
Australia
South AfricaLatin America
India
UK
Asia Pacific
Global platform with an extensive commercial footprint
Direct Presence Today
Indirect Markets
Area Manager
ADVANZ PHARMA Offices
Centre of Excellence
Lean, Asset-light Operating Model Underpinned by the Differentiated India Centre of Excellence
9
3
Note: Financial data as of FY2018; employee breakdown as of Jun-19 (including new hire in BD department after June)
Lean,
Asset-light
Operating
Model
Highly
Differentiated
India Centre
of Excellence
• Robust corporate infrastructure
• Critical parts of value chain managed internally
• Minimal capex requirements
• No manufacturing
• Lower operating costs
• Full range of operating activities
• Highly qualified team
• Cost effective
• Scalable
Key Competitive
Advantage
BusinessDevelopment
• BD-led pipeline and product acquisition
• Strong integration team
• Product development outsourced
• Strong internal team of regulatory, quality, medical and technical experts
• Global capabilities
• Professional and scalable project delivery office
• Outsourced to CMOs
• Managed by internal supply chain team
• Highly experienced tech transfer team
• Direct sales
• Area managers
• Longstanding distributor relationships in several markets
• Global commercial support team
Sales andMarketing
ManufacturingScientific Affairs
India
CoE
255
UK
112
EU
12
RoW
44
60% of Employee Base
14%Scientific
Affairs
118
Supply Chain
17
Support and
Management
98Commercial
21
Corporate
Development
1
14% of Employee Costs
6%
6% of Total Costs
Employee Breakdown
Lean, cost efficient and scalable operating model providing distinctive competitive advantage
423 255
India CoE – Highly Scalable Platform with an Experienced and Qualified Workforce
10
Note: Employee data as of June 2019
43
43
16
16Fully Fledged
Scientific
Affairs Team
1
Highly
Experienced
Supply Chain
Management
Team
Commercial Team
Supporting All The
Key Markets
2
3
Well Invested Platform
Function # of
employees
Scientific affairs 118
Supply chain management 23
Commercial/Corp dev 22
Support and management
- Finance- IT- HR- Legal- Other Admin
92
422383
16
Total 255
1
2
3
Highly Skilled and Qualified Workforce
118
Regulatory
Quality
Medical
Technical Operations
15
6
2
23
1110 21UK
RoW
Inventory
Management
Project Delivery Office
Technical Operations
Highly scalable platform with capabilities across the full range of operating activities
Manufacturing Outsourced to a Network of Blue-chip CMOs
11
Strong Relationship with Key CMOs
Wide network of high quality CMOs ensuring local presence, supply reliability and continuity
Wide Portfolio across Various Product Technologies and Formulations
Favourable Supply Terms
Skilled Network of 70 High Quality CMOs Primarily in Europe and North America(1)
Typical Contract
Terms
• Typically five year contracts
• Long termination notice
• No change of control clause
• Exclusive arrangement for key products (CMO cannot supply to others) as IP is owned by ADVANZ PHARMA
IP / MA Ownership
• Marketing Authorisations (MAs) directly or indirectly controlled by us
• Batch documentation, reports, developments etc. owned by us
On-going supply relationship with 7 of the top European 10 CMOs Key CMOs have been suppliers to us for over 10 years
Sterile Injections
• Plastic / glass ampoules, liquid filled / lyophilized vials, terminally sterilized, infusion bags, PF syringes
Liquids and Semi-
solids
• Syrups, aqueous based creams, oil based ointments, suspensions, aseptic drops, gels, plastic / laminated tubes
Oral Solid Dosage
• Granules, effervescent tablets, modified release tablets, soft gel / hard gel capsules, high potency tablets, sugar / film coated tables, oral dispersible tablets
EU
64%
UK
19%
US
11%
Asia
5%Australia
1%
(1) Breakdown of Cost of Goods Sold for Top 10 CMOs
Growth Strategy
AMCo Success Story
Concordia History
From Goldshield to Mercury Pharma ADVANZ PHARMA Today
Amdipharm History
Track Record of M&A and Shareholder Value Creation
13
• Founded in 2002
• Focused on niche mature brands
• Asset light business model
• 75% of sales outside the UK
• Sold to Cinven by the founders in
2012
• New management team
• Deleveraged from 11.8x to
4.6x net debt/EBITDA post-
recapitalization(1) (Sep-18)
• Rebranded to ADVANZ
PHARMA
• Renewed strategic and
operational plan
• Robust growth outlook£299MM £175MM £2.3bn
• Founded in 1989
• Taken private by HgCapital in 2009
• Implemented several initiatives including:
− Divested non-pharma segments
− Refocused on UK mature brands and generics
− Renamed to Mercury Pharma in 2012
• Sold to Cinven in 2012
• Mercury and Amdipharm combined to form AMCo
• Highly successful integration with significant
synergies realised
• Multiple value enhancing acquisitions, including
Focus Pharma, Abcur, Primegen, BNM Group
• Significant increase in scale and geographic reach
• Sold to Concordia in 2015
£108MM £45MM £367MM
Legend
= Revenue at exit
= LTM EBITDA at exit
= Transaction Value at Exit
= EBITDA Multiple at Exit
£97MM £47MM £465MM c.10x c.13x
• Multiple acquisitions including
AMCo in 2015
• Regulatory / competitive pressure
on certain molecules
• High leverage resulting in
constrained balance sheet
• Underwent recapitalisation led by
GSO, Bybrook and Solusc.8x
(1) $250MM FY2018 expected EBITDA at the time of the transaction
Focus on Further Diversifying the Portfolio Mix Towards Higher Value Medicines
14
Definition Selected Brands Key Highlights
• Medicines based on existing molecules that are repurposed to improve outcomes and fulfil unmet patient needs
• Growth products aimed at improving clinicaloutcomes
• Command higher prices due to investment requirements
• Specialised products with a high degree of difficulty to develop and manufacture
• Imminent entry into segment
• High complexity and S&M investments create a sustainable revenue stream
• Generic molecules available in new or exclusive presentations (e.g. form, pack, strength)
• Entered organically through leveraging niche generics business
• Focus on identifying attractive market segments
• Generics aimed at attractive niche therapeutic areas
• Current portfolio was generated through historical and on-going pipeline investments
• BD-led pipeline effort is a key differentiation vs. other mature brands platforms
• Branded, off-patent medicines with long prescription history
• Long term core focus
• Stable products which have been marketed for decades
• Pockets of growth potential for assets acquired with global licenses
Present in Segment Imminent entry into segment Future focus area
Value Added Medicines
High Barrier Specialty
Differentiated Generics
Niche Generics
Established Brands
We maintain a focused product portfolio of niche established medicines and engage in a strategy of
investment and innovation around unmet patient needs
Growth Outlook Underpinned By 3 Strategic Pillars
15
Product PipelineProduct
Acquisitions
Corporate
M&A
Business Development
active projects for
Western European
platforms2
development and in-
licensing launches in
2020-23100+
44 5 6
Fully equipped to successfully execute on business development and M&A plan
active and near-term
product acquisition
opportunities in pipeline25+
Multi-faceted Pipeline Engine
Moving up the Value CurvePipeline Categories
16
Continued investment into product pipeline with increasing focus on differentiated product profiles
Dossier in-Licensing
• In-license rights to a 3rd party product for certain territories
• Leverage existing market presence
• Generally entails full ownership of MA and ability to change manufacturer over time
Product Development
• Attractive opportunities for generic versions in niche / complex areas
• New formulation / strengths of existing products
• Fee for service model with selected development partner
• IP owned by ADVANZ PHARMA
Distribution Agreements
• Leverage market knowledge and relationships with distributors
• Low cost, low risk agreements
• Leverage existing market presence
• IP remains property of the partner
1
2
3
1 2
1 2
3
Established Brands
Niche Generics
Differentiated Generics
High BarrierSpecialty
Value AddedMedicines
Ris
k P
rofile
Growth Potential
1 2
1 2
3
Deep Pipeline of Near-term Product Launches
17
Top 15 Products
2019 2020 2021 2022 Geography# of
CountriesProduct Type Project Status
Product A NZ 1 Niche Gx MA Approved
Product B UK 1 Niche Gx Pre-Registration
Product C Europe, RoW 13 High Barrier Specialty MA Submitted
Product D UK 1 Differentiated Gx MA Submitted
Product E UK 1 Differentiated Gx MA Submitted
Product F UK 1 Niche Gx MA Submitted
Product G Nordics 4 Differentiated Gx Pre-Registration
Product H UK 1 Differentiated Gx Pre-Registration
Product I UK, NO, NZ 6 Niche Gx Pre-Registration
Product J France 1 Niche Gx Pre-Registration
Product K EU, ANZ 12Value Added Medicine
Pre-Registration
Product L Europe, RoW 14 High Barrier Specialty MA Submitted
Product M UK 1 Niche Gx Pre-Registration
Product N UK 1 Niche Gx Pre-Registration
Product O ZA 1 Niche Gx Pre-Registration
Development In-licensing Out-licensing
Strong Product Divestment Momentum in the Mature Brands Sector
18
2013 2014 2015 2016 2017 2019 YTD2018
ADVANZ PHARMA / predecessor transactions
(Salagen®, Panretin ®)
Sunstar
Suisse(GelX)
(Indocin)
(Sylvant)
(Rohypnol)
(Reisegold)
(Ophthalmic portfolio)
(Fucithalmic®)
(pedriatic porfolio)
(5 products)
(Non-U.S. Developed
Markets)
(IRENAT)
(Zonegran®)
(Donnatal®)
(Ulesfia®)
Lachlan
Pharma
(Vesanoid Japan &
Dilatrend)
(Calcivit)
(Seloken & Logimax)
(Ametop)
(Vamousse)
(3 products)
(Prilosec)
(3 products)
(Aldactone)
(UCB Package)
(Streptosil)
(Entocort)
(Portfolio in India)
(18 products)
(Betapace,
Betapace AF)
(Altoprev)
(27 dermatology
assets)
(Hemostasis portfolio)
(Xenical & Anexate)
(Dermatology business)
(Non-aesthetics
business)
(4 products)
(Sular)
(Esidrex, Sintrom, Digoxin)
(Toprol-XL)
(5 products)
(Tekturna & Rasilez)
(14 brands)
“We continue to streamline our portfolio, allowing AstraZeneca to allocate resources more effectively(…)”AstraZeneca CEO, Nov-18
“(…) the time is right for Novartis to divest a non-core asset (…) to allocate capital to grow our core businesses, drive shareholder returns, and execute valuecreating bolt-on acquisitions (…)” Novartis CEO, Mar-18
“Takeda seeks to divest $10bn of assets after £46bn Shire deal”Forbes, 7 January 2019
ADVANZ PHARMA’s capital structure constrained
(4 products)
(Visudyne)
(5 products)
(Atacand)
(Portfolio in the Nordics)
(Seroquel)
(Sandoz portfolio and
generics)
(Nizoral)
(Synagis)
(3 products)
(Recothrom &
Preveleak)
(Skenan, Actisken)
(Signifor))
… As Demonstrated by Our Track Record of Value Enhancing Product Acquisitions
Eltroxin®, Liothyronine®
Diamox® Hygroton®, Ludiomil®, Cafergot®
Hytrin® Salagen®, Panretin®
Macrodantin®, Furadantin®,
Macrobid®, Furabid®
Erythrocin®, Akineton®, Transact®
Neomercazole® Fucithalmic®
1992 1999 2001 2004 2006 2007 2008 2019
Donnatal®Kapvay®, Orapred®
2013
Zonegran®
2014
19
Our Strategic Mindset for Corporate M&A
20
Business model fit
Product portfolio fit
Synergy potential
Enhance commercial
capabilities in Western Europe
Value creation
Enhancing our Commercial Footprint Will Add Further Growth Levers to our Model
21
Drive volume of selected mature brands within our existing portfolio and
pipeline of niche products
Further increase our appeal to vendors of established brands through deeper
commercial presence and strengthened ability to optimally manage the
divested product in key European markets
Reinforce our position as partner of choice to in-license / develop and market
high value, niche established medicines with high barriers to entry
Drive Volume Growth
Enhanced Profile for
Established Brands
Vendors
Platform for High Value
Pipeline Opportunities
Expand to patented and biosimilar products, through partnering with non-EU
pharma companies seeking a leading commercial platform to out-license
their products
Become Preferred
Partner for Specialty
Medicines
Highly Experienced Management Team With Proven M&A Capabilities And Strong Relationships With Large Cap Pharma
22
Highly experienced management team with deep sector and M&A experience
Graeme Duncan
Chief Executive Officer
Rob Sully
General
Counsel
• Joined Goldshield in Jun-11
• Extensive experience in M&A, integration and anti trust dispute resolution in the pharma sector
Fiona Huzarski
Vice President
Global Human
Resources
• Joined ADVANZ PHARMA in Aug-19
• Previously Head of HR at Britannia Pharmaceuticals
Karl Belk
Chief
Operations
Officer
• Joined Mercury Pharma in Nov-12
• 26 years at Teva, most recently as Operations Director
Guy Clark
Chief Corporate
Development
Officer
• Joined Concordia in May-18
• Chief Strategy Officer at Mercury Pharma for 2010-15
• Previously President of Glenmark Europe
Simon Tucker
President
International
• Joined Goldshield in Jun-00
• President of the International segment since 2013
Paul Burden
President of UK &
Ireland &
Corporate
Communications
• Joined Concordia in Sep-16
• Previously Senior Director at Teva UK
• 20+ years of commercial strategy experience
Adeel Ahmad
Chief Financial Officer
7
• Joint oversight of India Centre of Excellence
Attractive Financial Profile
23
8Financial Profile (US$m) As of Sep-19
LTM Revenue(2) 504
LTM Adj. EBITDA(2) 233
Adj. EBITDA Margin (%) 46%
Cash Conversion (%)(3) 99%
Net Leverage (x) 4.6x
Quarterly Adjusted EBITDA and Margin
(1) Includes US and Canada(2) As reported (i.e. does not include the full year impact of Salagen®/Panretin® acquisitions, US$11m of revenue
and US$7m of EBITDA, and full year impact of cost optimization initiatives)
(3) (Adj. EBITDA – Capex) / Adj. EBITDA
7267
5953
6560 56
47% 48% 46% 45%48% 46% 47%
0%
10%
20%
30%
40%
0
20
40
60
80
100
120
Q1-2018 Q2-2018 Q3-2018 Q4-2018 Q1-2019 Q2-2019 Q3-2019
Adjusted EBITDA Margin
Attractive financial profile with leading
profitability and cash conversion
Highly cash generative business with strong
EBITDA margins
Net Leverage below industry peers
Relatively consistent financial performance
over the last four quarters.
Adjusted EBITDA margins have remained
stable over the past two years despite a
challenging competitive environment.
Commentary
What’s Next – Move Up the Value Curve
24
Focused on moving up the value curve and becoming a leading specialty pharmaceutical platform with
advanced commercial capabilities in Europe
Product Portfolio
Commercial Capabilities
Platform for Partnership
FutureToday
• Highly diversified product portfolio
• Established brands
• Niche and differentiated generics
• Continue to enrich portfolio via BD-led product pipeline and acquisitions
• Add high barrier specialty products
• Value added medicines and other products which require promotion
• Capabilities in selected European
markets, Australia and North America
• Global reach with strong relationships
with distributors in over 90 countries
• Expand Western European
commercial platform via corporate
M&A
• Deeper commercial capabilities will
enable high value pipeline
opportunities
• Preferred licensing partner for niche
generics
• Become preferred partner for
innovative or biosimilar medicines
ADVANZ PHARMA Corporate Summary
Jefferies Healthcare Conference November 2019
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