Post on 21-Apr-2020
transcript
Investor presentation November 2018
BioGaia in short
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The founders Peter Rothschild and Jan Annwall
Holds 440 patentsin 32 families
Listed on the NasdaqStockholm (mid cap list)
Offices in Sweden (Stockholm, Lund, Eslöv),
Singapore, USA, Japan
Products in 100 marketsthrough distributors
127 employeesFounded in 1990
MISSION VISION
BioGaia’s vision is to be a ground-breaking leader in probiotics
BioGaia conducts research and development to offer consumers clinically-proven,health-promoting, patentedand user-friendly probiotic products
A healthcare company working with probiotics
Flexible business model
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BioGaia
Universities and hospitals where research is conducted
Manufacturing andpackaging units
Partners with salesof products
NETWORKResearchers
Preclinical and clinicalstudies at hospitals
and universities
BioGaiaProduct development
Product strategiesResearch
Quality assurance systemMarketing support
IP
NETWORKSuppliers
Production andpackaging
NETWORKPartners
Pharmaceutical orhealthcare companies
with sales organizations
PARTNERSHIP WITH STRONG LOCAL DISTRIBUTORS
BIOGAIABRAND
SALES THROUGHPHARMACIES
DIETARYSUPPLEMENT
BioGaia’s partner network
Protectis Gastrus ProdentisProtectis
BioGaia brand
• Branding for Health professionals
• Sold in 70 countries
• 69% of sales of finished consumer products (drops, digestive health tablets, oral health tablets, oral rehydration solution) were sold under the BioGaia brand, including co-branding, in 2017
• Build value, less dependence on patents
BioGaia’s Intellectual Property
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440 issued
patents in 32 families
70Internet-domains
Trademarks in
66countries + EU
Clinical trials supporting the use of BioGaia probiotics
184clinical studies have been carried out to date, including 12 in 2017. Results have been published in 159 articles in scientific journals and 14 doctorial theses (March 2018).
15500individuals of all ages have taken part inclinical studies with BioGaia’s humanstrains of Lactobacillus reuteri
Clinical trials with BioGaia Probiotics in different age groups
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184 completed clinical trials (50% children) in 15,500 individuals (68% children)
Updated March 2018
Preterms16 studies in
2 821 subjects
Infants (0-12 mo*)32 studies in
3 109 subjects
Children (13-36 mo)17 studies in
2 039 subjects
Children (3-18 y) 31 studies in
2 786 subjects
Adults (>18 y)88 studies in
4 521 subjects
BioGaia probiotics and indications
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HP-infection
Eradication treatment associated side-effects
Functional gastrointestinal disorders
Colic
Regurgitation
Constipation
Functional abdominal pain
Acute gastroenteritis
Support of gastrointestinal health
Antibiotic-associated side-effects
Gingivitis
Periodontitis
Protectis
Protectis
Gastrus
Prodentis
THE BIOGAIA GROUP
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BioGaia GroupTHE MICROBIOME PARTNER
BioGaia Group
BioGaia Biologics Inc.
BioGaia Japan Inc.
BioGaiaPharma AB
BioGaiaProduction AB
CapAble AB MetaboGen AB
BioGaia AB
• BioGaia Pharma AB is a subsidiary to BioGaia AB applying 25 years of probiotic experience to the research and development of new microbial therapeutic platforms.
• Through an established network of research institutions and companies, BioGaia Pharma’s mission is to match early research on candidates from the microbiome with unmet medical needs to develop drug platforms.
• Formed: June 2017• Location: Stockholm, Sweden• www.biogaiapharma.com
• Areas of focus: infectious diseases; inflammatory and gastrointestinal disorders
Development of next generation probiotics• MetaboGen works to develop products from novel bacterial strains, targeted for precise
indications and derived from the human gut microbiome• Products may be food supplements, or drugs, depending on the indication and the
preference of future partners• MetaboGen provides BioGaia with access to front-line development of next generation
microbial products, including regulatory development in this emerging field
Fredrik BäckhedMetabolic diseaseR&D
Jens NielsenSystems Biology R&D
FULL METAGENOME ANALYSIS
STRAIN IDENTIFICATION
DISCOVERY, FINDING FUNCTIONAL RELATIONSHIPS
CLINICAL TRIALREGULATORY WORK
MARKETING
PRODUCTDEVELOPMENT
Performed in MetaboGen, includingunique technology for producing products of anaerobic strains Together with partners
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• Production of BioGaia drops, easydropper, MiniPack and samples• GMP pharma certified• Product development• Laboratory
BioGaia Production BioGaia ProductionGMP certified
• Providing innovative packaging solutions allowing the development of new unique beverages
• Exclusive LifeTop™ Cap and LifeTop™ Straw supplier • www.lifetop.eu
LifeTop™ Cap LifeTop™ Straw
A Foundation against Antibiotic Resistance
A BioGaia CSR initiative that supports research and education within the area of antibiotic resistance by:Giving financial support to research and education that helps to prevent infections which reduces the use of antibiotics and the risk of antibiotic resistance. Activities• Twitter account (@ResResistance)• Monthly newsletter – Resist the resistance• Meetings with companies, organizations,
politicians to influence decision makers• Articles in regional newspapers and appearances
by BioGaia representatives in media
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MARKET AND COMPETITORS
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Our Market: Global probiotic supplement market 2015 ($ 3.8 billion)
1,9
1,2
0,6
0,1
America EU Asia Pacific Rest of world
International Probiotics Association 2015, Euromonitor International 2015
Our Market: Global probiotic supplement sales (Sales 2015 projected to 2020)
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2,6
3,8
5,4
0
1
2
3
4
5
6
2010 2015 2020
Sales ($ in billion)
From 2015 to 2020, CAGR of 7,4% assumed according report from Global Market Insight
International Probiotics Association 2013 & 2015, Global Market Insights 2016
What defines a probiotic supplement leader?
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R&D Fermen-tation
Manu-facturing
B2B marketing
Brand owner
B2C marketing
Strong IP
High quality & competitively priced culture
Innovative dosage formats
Consumer and HCP
loyaltyDistribution channels
• BioGaia IP, R&D and Product Development have enabled development of the BioGaia pediatric brand with unrivaled global distribution channels
• BioGaia has decided not have in-house fermentation manufacturing
• BioGaia has focused less on B2C marketing
R&D Fermen-tation
Manu-facturing
B2B marketing
Brand owner
B2C marketing
The BioGaia benchmark
• Companies developing, producing, and selling probiotics (Chr. Hansen)
• Well studied probiotic strains (L.GG from Valio)
• Non probiotic products / drugs (Imodium, Simethicone)
• Probiotic products with strong brands (Enterogermina)
• Pharma companies (Sanofi)
• Functional Food (ProViva)
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BioGaia Competitors
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Probiotic bacteria Car
Group Lactic acid bacteria German car
Genus Lactobacillus Volkswagen
Species Lactobacillus reuteri VW Golf
Strain L. reuteri Protectis VW Golf 2.0 Turbo
VW Golf I and the VW Golf VI GTI, similar cars, but you do not expect the same outputTry convincing your teenage daughter that an
iPhone 3 is just as good as an iPhone 6
Different breeds have different characteristics and are suitable for different tasks
Importance of strain specificity
MAJOR SHAREHOLDERS AND BOARD OF
DIRECTORS
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Major Shareholders 30 September, 2018 (source: Euroclear)
Total number of shareholders 30 September 2018: 9,825Foreign owners: 49% of capital (35% of votes)
A shares B sharesShare
capitalNo. of votes Capital Votes
000's 000's SEK 000's 000's % %1 Annwall & Rothschild Inv. AB 741 509 1,250 7,916 7.2% 33.0%2 Swedbank Robur fonder 1,632 1,632 1,632 9.4% 6.8%3 Fjärde AP-fonden 1,316 1,316 1,316 7.6% 5.5%4 Öhman Bank S.A 1,177 1,177 1,177 6.8% 4.9%5 State Street Bank & Trust co 742 742 742 4.3% 3.1%6 David Dangoor 519 519 519 3.0% 2.2%7 BNY Mellon SA/NV 490 490 490 2.8% 2.0%8 Banque Pictet &CiE 459 459 459 2.6% 1.9%9 SSB and Trust company, Boston 413 413 413 2.4% 1.7%
10 State Street Bank & Trust com., Boston 342 342 342 2.0% 1.4%Other shareholders 8,997 8,997 8,997 51.9% 37.5%
Total: 741 16,596 17,336 24,002 100% 100%
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David Dangoor
Inger HolmströmPeter ElvingIsabelle
DucellierChairman
Peter Rothschild
Brit StakstonEwa Björling
Anthon Jahreskog
Board of Directors (from 25 April 2018)
SALES AND PROFIT 5 YEARS DEVELOPMENT
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0
100
200
300
400
500
600
700
2013 2014*) 2015 2016 2017
Sales – 5 years development
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9%22%
25%
15%
Average growth: 16%
11%
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Sales, Operating expenses and Profit per year (MSEK)
*) Excluding license revenue Nestlé Infant Formula
0
100
200
300
400
500
600
700
2013 2014*) 2015 2016 2017
Total sales
Gross profit
Operating expenses (costof goods excluded)
Operating result
Profit before tax
Q3 2018
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• Sales up with 18% (excluding currency effects 10%)
• Good sales growth in Pediatrics segment
• Decrease in Adult segment (excluding currency effects) related to Protectis tablets
• Good sales growth for BioGaia Protectis drops, and also good growth for BioGaia Prodentis lozenges
• Good growth in all three regions
• Continued investments in marketing activities, staff, research and clinical studies
• Royalty from Nestlé regarding GUM are estimated to decrease by SEK 40 million in 2019 compared to 2018
Quarter 3 2018 – Executive Summary
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• BioGaia increases further in MetaboGen to 92%
• Launch of BioGaia Protectis tablets in Australia and BioGaia Gastrus tablets in Poland and Hungary
Key events after the end of the quarter
• MetaboGen reaches development goal – first productready for safety study
Quarter 3 2018 – Key events
Sales per segment (MSEK)
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1) Excluding currency effects
Q3 Q3 Change Change Roll 12 Q3Roll 12 Q3 Change Change2018 2017 % % 1) 2018 2017 % % 1)
Pediatrics 138 111 24% 15% 577 473 22% 20%
Adult health 36 36 1% -7% 124 101 22% 21%
Other 0 1 -58% -58% 2 9 -82% -82%
Total sales 175 148 18% 10% 702 584 20% 19%
Sales per geographical market (MSEK)
3535
22%
Q3 Q3 Change 12 months 12 months Change
2018 2017 % Q3 2018 q32017 %
EMEA 97 86 13% 434 371 17%
Asia Pacific 36 23 61% 119 74 62%
Americas 41 39 6% 149 138 8%
175 148 18% 702 584 20%
Rolling 12 months:
EMEA 62% (63%)
Asia Pacif ic 17% (13)
Americas 21% (24)
EBIT (MSEK) and EBIT margin
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*) Excluding revaluation of share in associates 7,0 (0) MSEK
Q3 Q3 Change Roll12 Q3 Roll12 Q3 Change2018 2017 % 2018 2017 %
EBIT *) 66 54 23% 264 218 21%EBIT Margin 38% 36% 38% 37%Profit after tax 51 42 22% 206 179 15%EPS 2.97 2.43 22% 11.86 10.34 15%
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• Continued growth of existing products
• New products such as Osteoporosis
• Continued growth in Americas and Asia Pacific
• Integration of MetaboGen
Present focus
www.biogaia.com