30
VIFOR PHARMA INVESTOR PRESENTATION November 2019
VIFOR PHARMAINVESTOR PRESENTATION
November 2019
© Vifor Pharma November 2019
VIFOR PHARMA
OUR VISION
Global leader
in iron deficiency, nephrology
and cardio-renal therapies.
2
© Vifor Pharma
EXPERIENCED LEADERSHIP TEAM
PROVEN TRACK RECORD
November 2019
ETIENNE JORNOD
EXECUTIVE CHAIRMAN
OF THE BOARD OF DIRECTORS
STEFAN SCHULZE
PRESIDENT OF THE EXECUTIVE
COMMITTEE & COO
COLIN BOND
CHIEF FINANCIAL OFFICER
3
© Vifor Pharma
PROVEN TRACK RECORD
CORPORATE TIMELINE AND STRATEGY
20002010
2015
2020
BECOMING GLOBAL LEADER
IN IRON DEFICIENCY AND
ENTERING INTO NEPHROLOGY
BECOMING GLOBAL LEADER
IN NEPHROLOGY AND ENTERING
CARDIO-RENAL DISEASE AREA
• 2000: Venofer® US FDA approval
• 2007: Launch of Ferinject®
• 2008: Acquisition Aspreva
• 2008: Creation of EU affiliates
• 2009: Acquisition OM Pharma
• 2010: Creation of VFMCRP
• 2013: Injectafer® – FDA approval
• 2013: Launch of Velphoro®
• 2015: Mircera® license
• 2015: Veltassa® license
• 2016: Four in-licensing deals
• 2016: Relypsa acquisition
• 2017: Galenica Santé IPO
• 2017: Vadadustat1) license
• 2018: CR8451) license
• 2019: Invokana® co-promotion
• 2019: Joint venture with Evotec
BUILDING IRON PORTFOLIO
AND INTERNATIONAL EXPANSION
November 2019 4
1) Pre-commercial products
© Vifor Pharma
LEADING PORTFOLIO IN TARGET THERAPY AREAS
1) Pre-commercial products
Avacopan1) CCX1401)
1)
Vadadustat1)
November 2019
CR8451)
Iron
deficiencyNephrology Cardio-renal
Own
products
In-licensed
products
5
© Vifor Pharma
THREE STRATEGIC GROWTH DRIVERS
Ferinject®
Exploit the potential through market awareness
Veltassa®
Build a blockbuster
Nephrology (VFMCRP1)) Expand leadership position
November 2019 6
1) Vifor Fresenius Medical Care Renal Pharma
© Vifor Pharma
[T
November 2019 7
Source: quarterly IQVIATM MIDAS® panel, GERS, Insight Health, DLI, MAT Q2-2019, historical data at constant exchange rate (average 2018)
FERINJECT®
GLOBAL LEADER IN THE I.V. IRON MARKET
81
CHFm
20191996
1’991
CHFm
23%
50%
28%
© Vifor Pharma November 2019
FERINJECT®
BLOCKBUSTER STATUS ALREADY REACHED IN 2019
Europe US RoW
1) Based on quarterly IQVIATM MIDAS® panel, GERS, Insight Health, DLI, historical data at constant exchange rate (average 2018)
IN-MARKET SALES1)
CHF MILLION
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2019
FAIR-HF
study
(cardio)
FERGI-COR
study
(gastro)
PREFER study
(fatigue)
New EU
guidelines:
nephro, cardio,
gastro, onco
FIND-CKD
study (ND-
CKD)
Injectafer®
approved
in the USA
CONFIRM-
HF study
(cardio)
New ESC
guidelines
(cardio)
EFFECT-HF
study
(cardio)
Intensifying
promotional
effort by
Daiichi
Sankyo
Launch in
CH, UK,
Spain
New EU
onco
guidelines
8
2018
16 39 59 83126
191244
379
540
698
898>1’000
© Vifor Pharma
Switzerland
Australia
Sweden
Spain
Germany
Italy
UK
U.S.
Japan
China
6%
23%
13%
35%
11%
48%
22%
39%
0%
0%
November 2019
FERINJECT®
SIGNIFICANT MARKET OPPORTUNITY REMAINS1)
1) Based on quarterly IQVIATM MIDAS® panel, GERS, Insight Health, moving annual total (MAT) Q4 2017-18, historical data at constant exchange rate (average 2018)2) 100 mg eq./1’000 population 3) Subject to reimbursement
Launch Date
2008
2011
2008
2009
2007
2012
2008
2013
20193)
2021
Ferinject® volume per capita2)Ferinject® in-market volume growth
251
109
38
34
34
27
24
14
0
0
9
© Vifor Pharma
2021 2022 2023 2024
Life cycle
management
Indications
with high
unmet need
November 2019
1) Subject to reimbursement 2) Investigator initiated study, University of Hamburg 3) Study conducted by our US partner Daiichi Sankyo
FERINJECT®
EXPLOIT THE POTENTIAL
2020 2025
HEART-FID
completion*3)
U.S. Post-
approval study
FAIR-HF2
completion*2)
Post-approval
study
Focus on heart failure, patient blood management and nephrology
*Targeted guidelines:
> CHF 2
billion
in-market
sales
(> CHF 1
billion
reported
sales)
U.S. label
update
10
Geographic
expansion
AFFIRM-AHF
completion*Post-approval
study
China launch
2021
Japan launch1)
2019
© Vifor Pharma
NEPHROLOGY
HIGHLY DIVERSIFIED PORTFOLIO
November 2019
1) Pre-commercial products
11
MINERAL & BONE
MANAGEMENT
ANAEMIA
MANAGEMENT
KIDNEY
PROTECTION
Avacopan1)1)
Vadadustat1)
CR8451)
CCX1401)
CKD-ASSOCIATED
COMPLICATIONS
© Vifor Pharma November 2019
1) Pre-commercial products
NEPHROLOGY
VIFOR FRESENIUS MEDICAL CARE RENAL PHARMA
STRONG IRON AND PHARMA EXPERTISE
GLOBAL LEADER IN DIALYSIS
Avacopan1)
CCX1401)
55% Stake
45% Stake
Vadadustat1)CR8451)
1)
12
© Vifor Pharma
2020 2021 2022 2023 2024
November 2019
NEPHROLOGY
DELIVERING INNOVATION TO NEPRHOLOGY PATIENTS
2019 2025
Additional launches in nephrologyVadadustat
launch
CCX140
launch
CR845 / Uremic
PruritusPh. III trials completion
VadadustatPh. III trials
completion
> CHF 1bn
reported sales
Avacopan &
CR845 launch
Avacopan / AAVPh. III trial
completion
CCX140 / FSGS Ph. II trial completion
Rayaldee®
launch
13
Early stage development through the joint venture with Evotec
© Vifor Pharma
CURRENT INDICATIONS
November 2019
NEPHROLOGY
NUMEROUS OPPORTUNITIES REMAIN
Polycystic kidney disease
Metabolic acidosis
Vascular calcification
Kidney stones
Hypernatremia
Fabry
aHUS
Acute kidney injury
β-Thalassemia renal disease
FSGS
ANCA associated vasculitis
Uremic pruritus
C3G
Secondary hyperparathyroidism
Hyperphosphatemia
Hyperkalemia
Anaemia
Iron deficiency
PIPELINE INDICATIONS POTENTIAL INDICATIONS
14
Diabetic kidney diseaseKidney fibrosis
© Vifor Pharma November 2019
NEPHROLOGY
LEADERSHIP OF THE WHOLE NEPHROLOGY CHAIN
CLINICAL / PRE-COMMERCIAL
IN-LICENSING DEALS AND PARTNERSHIPS
Avacopan
VadadustatCR845
CCX140
PRE-CLINICAL
DA
TA
GE
NE
RA
TIO
N
PARTNERSHIP
TRANSPLANTATION
COMMERCIAL
PRE-DIALYSIS DIALYSIS
15
Joint venture
with Evotec
© Vifor Pharma
US nephrologists
November 2019 16
NEPHROLOGY
LEVERAGING US COMMERCIAL ORGANISATION
+
Invokana®
• First new treatment of diabetic kidney
disease in more than 20 years
• Royalties received on net sales
• Targeted population of 1.2 million
• Accretive latest end of 2020
© Vifor Pharma
[]
November 2019 17
NEPHROLOGY
ADDING WORLD CLASS PRE-CLINICAL CAPABILITIES
Joint venture
50%
50%
Pre-clinical candidates
© Vifor Pharma
[]
November 2019 18
NEPHROLOGY
STAGED, SUCCESS DEPENDENT PARTNERSHIP
Joint venture
Generate target candidates Pre-clinical up to phase II Phase III to commercialisation
• World class discovery
• Unique kidney biobank
• Combines respective expertise
• Joint scientific committee
• Global commercial network
• Unique access to nephrology patients
© Vifor Pharma
[]
November 2019 19
• Calcium-based, non-absorbed
• Limited undesirable effects
• 52-weeks data available
• RAASi enabling feature included in
SmPC1) in Europe
• Acute & chronic usage
• Room temperature storage
VELTASSA®
BUILDING THE HYPERKALAEMIA MARKET
Source: quarterly IQVIATM MIDAS® panel, GERS, Insight Health, DLI, MAT Q2-2019, historical data at constant exchange rate (average 2018) 1) SmPC = summary of product characteristics
46%
54%
175
CHFm
295
CHFm
20192015
© Vifor Pharma
US MARKET OPPORTUNITY
November 2019
VELTASSA®
ASSESSMENT OF LONG TERM POTENTIAL UNCHANGED
3 million USD 820
Monthly gross priceEstimated
hyperkalaemia patients
6 months
Targeted duration
of treatment
x x > USD 10 billion =
Potential market size
(net sales)
20
© Vifor Pharma
2020 2021 2022 2023 2024
November 2019
VELTASSA®
DRIVE TO BLOCKBUSTER STATUS
2019 2025
DIAMOND
completionPost-approval study
AMBER study
results publishedPost-approval study
Label updates based on
DIAMOND results
Blockbuster
status
Guideline*
updates based on
AMBER results
Guideline*
updates based on
DIAMOND results
*Targeted guidelines:
European rollout Japan launch
Zeria
21
© Vifor Pharma
PRE-CLINICAL
November 2019
R&D INVESTMENTS
FOCUS IS ON KEY PRODUCTS AND CLINICAL PIPELINE
1) Iron overload; leveraging iron metabolism expertise 2) Study conducted by our US partner Daiichi Sankyo
PHASE 1 PHASE 2 PHASE 3 LIFE CYCLE MANAGEMENT
Own
Products
In-licensed
Products
Oral ferroportin
inhibitor1)
Avacopan (Q4 2019)
CCX140 (2020)
AFFIRM-AHF
(2020)
DIAMOND
(2022)
Vadadustat(Q2 2020)
CR845 (Q2 2020)
Initiation
Q4 2019HEART FID
(2022)2)
22
Joint venture
with Evotec
© Vifor Pharma
H1
2018
H1
2019
%∆ vs.
H1 2018
Net Sales 747.4 913.3 +22.2%
Other Income 41.0 20.4 -50.3%
Gross Profit 500.2 560.3 +12.0%
EBITDA 192.0 254.6 +32.6%
Depreciation and amortization -76.7 -106.0 -38.1%
EBIT 115.2 148.7 +29.0%
Financial result 41.8 -8.9 NM
Income tax 1.0 -13.8 NM
Net Profit before minorities 158.0 126.0 -20.3%
Net Profit after minorities 118.0 65.2 -44.8%
Core earnings1 per share 2.66 2.11 -20.7%
November 2019 23
P&L OVERVIEW (IN CHF MILLION)
NM = not meaningful
• Net sales increase of +22.2%
driven by Ferinject®, Mircera®
Velphoro® and Veltassa®
• Proportionately lower gross profit
increase due to lower other income
and higher cost of sales related to
Mircera® commercialisation rights
• EBITDA increase of +32.6% driven
by strong top-line growth and cost
containment
• Growth in net profit after minorities
impacted by a one-off FX gain in
H1 2018 and higher tax expenses
© Vifor Pharma
44.4
5.7
65.1
45.3
25.7
-20.3
165.9
+19.4%
+9.6%
30.4%
+126.6%
+69.9%
-11.8%
+22.2%
November 2019 24
NET SALES OVERVIEW (IN CHF MILLION)
SOLID GROWTH IN H1 2019
H1
2018
H1
2019
Ferinject®/Injectafer® 229.0 273.4
Venofer® 59.6 65.4
Mircera®/RetacritTM 214.0 279.1
Velphoro® 35.8 81.1
Veltassa® 36.8 62.6
Others 172.1 151.9
Net sales 747.4 913.3
Growth
in H1 2019
© Vifor Pharma
31 Dec
2018
30 Jun
2019
Change vs.
31 Dec 2018
Cash & cash equivalents 400.3 321.5 (78.8)
Trade & other receivables 509.0 522.3 13.4
Inventories 281.7 319.4 37.7
Financial investments & other assets 354.5 329.9 (24.6)
PPE1)
& RoU2)
assets 274.0 341.6 67.6
Intangible assets 2'676.0 2'643.0 (33.0)
Assets 4'495.5 4'477.8 (17.7)
Current financial & lease liabilities 116.2 115.1 (1.1)
Other current liabilities 478.3 466.2 (12.1)
Non-current financial & lease liabilities 492.4 554.0 61.6
Other non-current liabilities 44.1 30.8 (13.3)
Shareholders' equity 3'364.6 3'311.7 (52.9)
Liabilities & shareholders' equity 4'495.5 4'477.8 (17.7)
• Decrease in cash & cash
equivalents mainly driven by
dividend payments
• Increase in inventories to support
the growth of the business
• Increase in PPE1) & RoU2) assets
and non-current financial & lease
liabilities driven by the adoption of
IFRS 16
November 2019 25
BALANCE SHEET OVERVIEW (IN CHF MILLION)
STRONG EQUITY RATIO OF 74.0%
1) Property, plant & equipment 2) Right-of-use
© Vifor Pharma
2019
Opening cash & cash equivalents, 1 January 400.3
Operating activities 267.7
Net working capital (NWC) (57.5)
Interest, tax & other financial payments (12.3)
Cash flow from operating activities 197.9
Milestones & BD&L1)
investments (58.3)
Capex & others (12.7)
Cash flow from investing activities (71.1)
Dividends paid (174.7)
Financing & others (28.2)
Cash flow from financing activities (202.9)
Exchange rate effects (2.7)
Ending cash & cash equivalents, 30 June 321.5
Interest bearing financial liabilities (excl. leases) (564.4)
Net debt (242.8)
• Strong cash flow from operating
activities, despite the increase in NWC to
support topline growth
• Cash flow from investing activities driven
by the Mircera® commercialisation rights
(CHF 37.7)
• Cash flow from financing activities driven
by dividend payments of CHF 129.7 to
Vifor Pharma shareholders and CHF 45.0
to Fresenius Medical Care
CASH FLOW OVERVIEW (IN CHF MILLION)
NET DEBT OF CHF 242.8 MILLION
26November 2019
1) Business development & licensing
© Vifor Pharma
GUIDANCE 2019
NET SALES AND EBITDA GUIDANCE INCREASED
In 2019 at constant exchange rates, Vifor Pharma net sales are expected to exceed 15%,
reported EBITDA is expected to grow between 25% and 30%.
In 2020 net sales are expected to exceed CHF 2 billion and
EBITDA to be in the range of CHF 700 million.
Going forward the dividend is expected to remain at the current level of CHF 2 per share.
November 2019 27
© Vifor Pharma
OUTLOOK 2019
CLINICAL TRIALS
MARKET ACCESS
Veltassa®: presentation of the AMBER study results (May 2019)
Veltassa®: initiation of the DIAMOND outcome study for RAASi enabling (May 2019)
Ferroportin inhibitor: initiation of phase-II study (Q4 2019)
Avacopan: phase-III ADVOCATE study readout (Q4 2019)
CR845: readouts of KALM-1 study (May 2019) and KALM-2 study (shifted to Q2 2020)
Ferinject® launch in Japan, subject to reimbursement
Go-to-market strategy in China for Ferinject®
BUSINESS
DEVELOPMENT At least one additional in-licensing, product acquisition or corporate transaction
November 2019 28
© Vifor Pharma
CONTACT INFORMATION
Colin Bond – CFO
Phone: +41 58 851 83 53
Email: [email protected]
INVESTOR RELATIONS
Julien Vignot – Head of Investor Relations
Phone: +41 58 851 66 90
Email: [email protected]
Laurent de Weck – Investor Relations Manager
Phone: +41 58 851 80 95
Email: [email protected]
November 2019 29
© Vifor Pharma
DISCLAIMER
Certain statements, beliefs and opinions in this presentation are forward-looking, which reflect the Company’s or, as
appropriate, the Company’s directors’ current expectations and projections about future events. By their nature, forward-
looking statements involve a number of risks, uncertainties and assumptions that could cause actual results or events to
differ materially from those expressed or implied by the forward-looking statements. These risks, uncertainties and
assumptions could adversely affect the outcome and financial effects of the plans and events described herein. A multitude
of factors including, but not limited to, changes in demand, competition and technology, can cause actual events,
performance or results to differ significantly from any anticipated development. Forward-looking statements contained
in this presentation regarding past trends or activities should not be taken as a representation that such trends or activities
will continue in the future. As a result, the Company expressly disclaims any obligation or undertaking to release any update
or revisions to any forward-looking statements in this presentation as a result of any change in expectations or any change
in events, conditions, assumptions or circumstances on which these forward-looking statements are based. Neither the
Company nor its advisers or representatives nor any of its of their parent or subsidiary undertakings or any such person’s
officers or employees guarantees that the assumptions underlying such forward-looking statements are free from errors
nor does either accept any responsibility for the future accuracy of the forward-looking statements contained in this
presentation or the actual occurrence of the forecasted developments. You should not place undue reliance on forward-
looking statements, which speak only as of the date of this presentation.
November 2019 30
