BioGaia presentation February 2014

BioGaia presentation
February 2014
1
BioGaia – a healthcare company in
probiotics
Vision: BioGaia´s vision is to improve the
health of people around the world by offering
first class probiotic products.
Business concept: BioGaia´s concept is to
develop, market and sell well documented
probiotic products worldwide in the form of
innovative and appealing dietary supplements
and food products.
Probiotics: Live microorganisms which when
administered in adequate amounts confer a
documented health benefit.
2
BioGaia
•  Founded in 1990
•  Probiotics (strains of Lactobacillus reuteri)
•  88 employees (Stockholm 33, Lund 24, Eslöv 22, Raleigh 2,
Hiroshima 6, Shanghai 1)
•  More than 100 clinical studies
•  Products in 85 markets through distributors
•  Contract manufacturing
•  TwoPac (100% owned)
•  Holds over 200 patents in 29 families
3
Change of focus
Dietary Supplements
Infant formula
Functional Foods / Dairies
Animal Health
1990
1995
2000
2005
2010
4
BioGaia´s global network
NETWORK
Partners
pharmaceutical
and health companies
with sales forces
BioGaia
Product development
Product strategies
Research
Quality systems
Marketing support
NETWORK
Suppliers
manufacturing and
packaging
NETWORK
Researchers
Preclinical and
clinical studies are
conducted at hospitals
and universities
= BioGaia
= Universities and hospitals where research are
conducted
= Manufacturing and packaging units
= Partners with sales of component products
= Partners with sales of finished consumer
products
34
BIO G A I A A N N UA L R E P ORT 2 012
BIO G A I A A N N UA L R E P ORT 2 012
35
Distribution partner network
Local distributors
with medical
representatives
who promote to
health
professionals
Dietary
supplement
BioGaia
Sales through
Pharmacies
BioGaia brand
BioGaia Brand
•  Branding for Health professionals
•  Sold in 50 countries
•  55% of sales of finished products (incl. cobranding)
•  Build value, less dependence
on distributors and patents
7
Competition Strategy
•  Clinical trials of high quality
•  Attractive and unique formulations and
packaging solutions
•  Strong partner support
8
Clinical trials supporting the use of
BioGaia Probiotics with L. reuteri
– including the strains L. reuteri Protectis, Prodentis and Gastrus
Completed clinical trials Dec. 2013
•  120 trials in 9300 individuals whereof:
o 85 randomised, double-blind /
blind, placebo-controlled studies in
7400 subjects
o 35 open studies in 1900 subjects
o 37 studies in 0-3y in 4300 subjects
Results are published in 85 scientific
articles and 7 doctoral theses
Product Indications Overview
BioGaia ProTectis
L. reuteri DSM 17938 (ATCC 55730)
Gut Motility
Diarrhoea
Regurgitation
Prevention
Infantile colic
Acute Gastroenteritis
Constipation
Antibiotic Associated
Diarrhoea (AAD)
Functional abdominal
Pain (FAP)
BioGaia ProDentis
Neonatal Intensive Care
Feeding tolerance
BioGaia Gastrus
L. reuteri DSM 17938 & L. reuteri ATCC PTA 5289
L. reuteri DSM 17938 & L. reuteri ATCC PTA 6485
Gum Integrity
Stomach Health
Gingivitis/plaque
H. Pylori infection/inflammation
Periodontitis
H. pylori side effects
Crying time (median; mins/day)"
L. reuteri Protectis reduces infantile colic
**
***
***
***
**
p < 0.01"
***
p < 0.001"
Days of supplementation"
Savino et al. Pediatr Res 58: 411 (2005)
Savino et al. Pediatr, in press (2006)
11
Another positive study in infants with colic
”Based on the data we have today, it really appears that Lactobacillus reuteri protectis
can help both colicky babies and their families”
Hania Szajewska, Professor at the Medical University of Warsaw, Poland, and one of the world's foremost researchers on probiotics
Health protection by L. reuteri Protectis in
children
Children (4-10 m) with increased
risk for infection
12 weeks supplementation in
baby formula
13
Weizman et al., Pediatr 115; 5-9 (2005)
Health economics of L. reuteri Protectis
supplementation
Children (4-10 m) with increased
risk for infection
12 weeks supplementation in baby
formula
14
Weizman et al., Pediatr 115; 5-9 (2005)
L. reuteri Protectis prevents antibioticassociated diarrhoea
Adults in hospital on
antibiotics
Supplemented with
L. reuteri Protectis or
placebo for 4 weeks
15
Cimperman et al. ASPEN meeting February 2009
Study shows reduced risk of diarrhea in children
”Especially children in these areas are
exposed to a vicious circle of undernutrition
and frequent infection episodes. We know
now that with the right probiotics this
negative spiral can be broken”
Ingeborg Bovee-Oudenhoven, NIZO scientist and project
leader, the Netherlands
Attractive and unique formulations and
packaging solutions
17
BioGaia product portfolio
ProTectis
ProDentis
Gastrus
Digestive Health
OralHealth
Stomach Health
ProTectis
ProTectis D3
ProTectis
ProTectis
Baby
Baby
Junior
Baby/Junior
Drops
Drops
Tablets
ORS
ProTectis
Tablets
ProDentis
Drops
ProDentis
Lozenges
Gastrus
Tablets
Strong partner support
• 
• 
• 
• 
• 
• 
• 
Clinical trials
Marketing and PR support
BioGaia Academy
Web site
Participation in conferences
Speakers at symposiums
Education of sales representatives
19
Competitors
Culture suppliers
•  Chr Hansen
•  DuPont (Danisco)
•  Institut Rosell Lallemand
(France)
Probiotic strains
•  Valio (Finland)
•  Probi (Sweden)
Functional Foods
•  Danone
•  Yakult
Pharma
•  Merck (Germany)
•  Novartis
•  Sanofi Aventis
•  Ferrosan (Pfizer)
•  Bayer (USA)
Other
•  P&G
•  Local competitors
20
Launches and planned launches
-  Drops: Launched in 64 countries (contracts
but not launched in 5-10 countries)
-  Tablets: Launched in 52 countries
(contracts but not launched in 5-10
countries)
-  ORS: Launched in 7 countries (contracts
but not launched in 6 countries)
-  Oral health products: Launched in 20
countries (contracts but not launched in 4
countries)
21
Corporation with Nestlé
•  Sale of licence to use BioGaia´s probiotic in infant formula for EUR
50.8 (EUR 40 million paid and accounted for in q1 2012). The
additional payments will be received during 2014-2017 on the
achievements of predefined milestones
•  Further projects are under development and will be announced
closer to launch
•  Drops in USA and Mexico
•  Agreement for new category of products
22
Sales development – 5 years
Average growth: 18%
Sales
350,0
+33%
-8%
300,0
250,0
200,0
+9%
*)
+16%
+40%
Sales
150,0
100,0
50,0
0,0
2009
2010
2011
2012
2013
*) Excluding licence revenue from Nestlé of 356 MSEK
23
Sales development by segment- 5 years
Finished consumer products – average growth: 20%
Component products – average growth: 17%
300
+8%
250
+10%
+30%
200
+16%
+39%
Finished consumer products
150
Component products
+42%
100
+28%
+46%
-48%*)
+16%
50
0
2009
2010
2011
2012
*) Excluding licence revenue from Nestlé
2013
24
Sales per geographical market 2013 (MSEK)
Europe 69% (70)
USA and Canada 7% (10)
Asia 13% (11)
Rest of world 11% (9)
25
Sales per segment q4 2009- q4 2013 (rolling 12
months) (MSEK) (License revenue excluded)
300 000
250 000
200 000
150 000
Finished consumer products
Component products
100 000
50 000
0
26
Gross Margins per segment (MSEK) (License revenue
excluded) 2013/2012
Gross margin per segment
Finished consumer products
Component products
Total gross margin
2013
70%
57%
68%
2012
72%
59%
70%
BioGaia Brand
Sales of products of BioGaia brand (incl. ”co-branding”) amounted to 55%
(51%) of finished consumer products during 2013.
27
Income statement 2013 vs 2012
2013
256,2
58,6
1,1
315,9
-101,7
Excl. Licence
revenue
2012
237,6
50,6
1,1
289,3
-88,2
214,2
68%
201,1
70%
557,1
86%
7%
-134,3
1,8
-126,6
-2,4
-126,6
-2,4
6%
Operating profit
Operating margin
81,7
26%
72,1
25%
Exchange gain/loss on forward exchange contracts
Interest income
-2,9
5,0
5,6
8,6
5,6
8,6
Profit before tax
Profit margin
83,8
27%
86,3
30%
442,3
69%
Tax
-19,6
-22,6
-112,4
64,2
63,7
329,9
Net sales Finished consumer products
Licence revenue
Net sales Component products
Net sales Other products
Total sales
Cost of goods sold
Gross profit
Gross margin
Operating expenses
Exchange gain/loss on operation
Profit after tax
Licence
income incl
Excl.
2012
curr eff.
237,6 8%
11%
356,0
50,6 16%
17%
1,1 0%
645,3 9%
12%
-88,2
428,1 13%
66%
16%
-3%
1%
28
Balance sheet 31 December 2013/2012 (MSEK)
Assets
Tangible assets
Current assets
Cash and cash equivalents
Total assets
Dec 31, 2013 Dec 31, 2012
60,3
49,2
88,8
92,8
234,3
375,0
383,4
517,0
Equity and liabilities
Equity attributable to owners of the Parent company
Non-controlling interets
Total equity
317,4
-0,5
316,9
453,3
3,5
456,8
Deferred tax liability
Interest-free current liabilities
Total equity and liabilities
0,1
66,4
383,4
24,7
35,5
517,0
29
5 years development (2012: excluding licence revenue from Nestlé)
350
300
250
200
Net sales
Gross result
150
Operating expenses
Operating profit
100
Profit before tax
50
0
30
Board
of
Directors
Major Shareholders 31 December 2013
Annwall & Rothschild Inv. AB
Banque Öhman S.A.
David Dangoor (inkl bolag)
Futuris
Pictet & CIE, W8IMY
AMF-Försäkring och fonder
Swedbank Robur fonder
Skandinaviska Enskilda Banken S.A.
Handelsbanken Fondbolag RE JPMCB
State Street Bank & Trust com., Boston
Other shareholders
Total:
Share
capital
A shares B shares
000's
000's SEK 000's
741
1 259
2 000
1 315
1 315
569
569
530
530
509
509
388
388
386
386
374
374
357
357
325
325
10 518
10 518
741
16 530
17 271
Total number of shareholders 31 December, 2013: 7,448
Foreign owners: 44% of capital (32% of votes)
No. of
votes
000's
8 666
1 315
569
530
509
388
386
374
357
325
10 518
Capital
%
11,6%
7,6%
3,3%
3,1%
2,9%
2,2%
2,2%
2,2%
2,1%
1,9%
60,9%
Votes
%
36,2%
5,5%
2,4%
2,2%
2,1%
1,6%
1,6%
1,6%
1,5%
1,4%
43,9%
23 937
100%
100%
Present focus
•  Continued focus on US, Russia, India and UK
•  Launch in Brazil
•  A number of projects with Nestlé
•  Manufacturing process for NEC-product
•  New organization (Business units) New
reporting by segment from 2014
33