Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
MORGAN CONFERENCE
JANUARY 8, 2018
BRENT SAUNDERS
CHAIRMAN AND CEO
ALLERGAN Cautionary Statements
forward looking statements
This communication includes statements that refer to estimated or anticipated future events and are forward looking statements. We have based our forward looking statements on management’s beliefs and assumptions based on
information available to our management at the time these statements are made. Such forward looking statements reflect our current perspective of our business, future performance, existing trends and information as of the date of
this filing. These include, but are not limited to, our beliefs about future revenue and expense levels and growth rates, prospects related to our strategic initiatives and business strategies, including the integration of, and synergies
associated with, strategic acquisitions, express or implied assumptions about government regulatory action or inaction, anticipated product approvals and launches, business initiatives and product development activities, assessments
related to clinical trial results, product performance and competitive environment, and anticipated financial performance. Without limiting the generality of the foregoing, words such as “may,” “will,” “expect,” “believe,” “anticipate,”
“plan,” “intend,” “could,” “would,” “should,” “estimate,” “continue,” or “pursue,” or the negative or other variations thereof or comparable terminology, are intended to identify forward looking statements. The statements are not
guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. We caution the reader that these statements are based on certain assumptions, risks and uncertainties, many of
which are beyond our control. In addition, certain important factors may affect our actual operating results and could cause such results to differ materially from those expressed or implied by forward looking statements. These
factors include, among others the inherent uncertainty associated with financial projections; the anticipated size of the markets and continued demand for Allergan’s existing products; Allergan’s ability to successfully develop and
commercialize new products; Allergan’s ability to conform to regulatory standards and receive requisite regulatory approvals; availability of raw materials and other key ingredients; uncertainty and costs of legal actions and
government investigations; fluctuations in Allergan’s operating results and financial condition, particularly given our manufacturing and sales of branded products; the impact of uncertainty around of timing of generic entry related to
key products, including Restasis ®, on our financial results; risks associated with acquisitions, mergers and joint ventures, such as difficulties integrating businesses, uncertainty associated with financial projections, projected cost
reductions, projected synergies, restructurings, increased costs, and adverse tax consequences; expectations regarding contingent payments, including regarding litigation and related liabilities, purchase price adjustment or
transaction consideration payments; the results of the ongoing business following the completion of the divestiture of Allergan’s generics business to Teva; the adverse impact of substantial debt and other financial obligations on the
ability to fulfill and/or refinance debt obligations; risks associated with relationships with employees, vendors or key customers as a result of acquisitions of businesses, technologies or products; our compliance with federal and state
healthcare laws, including laws related to fraud, abuse, privacy security and others; generic product competition with our branded products; uncertainty associated with the development of commercially successful branded
pharmaceutical products; costs and efforts to defend or enforce technology rights, patents or other intellectual property; expiration of patents on our branded products and the potential for increased competition from generic
manufacturers; competition between branded and generic products; Allergan’s ability to obtain and afford third-party licenses and proprietary technology we need; Allergan’s potential infringement of others’ proprietary rights; our
dependency on third-party service providers and third-party manufacturers and suppliers that in some cases may be the only source of finished products or raw materials that we need; Allergan’s competition with certain of our
significant customers; the impact of our returns, allowance and chargeback policies on our future revenue; successful compliance with governmental regulations applicable to Allergan’s and Allergan’s respective third party providers’
facilities, products and/or businesses; the difficulty of predicting the timing or outcome of product development efforts and regulatory agency approvals or actions, if any; Allergan’s vulnerability to and ability to defend against product
liability claims and obtain sufficient or any product liability insurance; Allergan’s ability to retain qualified employees and key personnel; the effect of intangible assets and resulting impairment testing and impairment charges on our
financial condition; Allergan’s ability to obtain additional debt or raise additional equity on terms that are favorable to Allergan; difficulties or delays in manufacturing; our ability to manage environmental liabilities; global economic
conditions; Allergan’s ability to continue foreign operations in countries that have deteriorating political or diplomatic relationships with the United States; Allergan’s ability to continue to maintain global operations and the exposure to
the risks and challenges associated with conducting business internationally; risks associated with tax liabilities, or changes in U.S. federal or international tax laws to which we are subject, including the risk that the Internal Revenue
Service disagrees that Allergan is a foreign corporation for U.S. federal tax purposes; risks of fluctuations in foreign currency exchange rates; risks associated with cyber-security and vulnerability of our information and employee,
customer and business information that Allergan stores digitally; Allergan’s ability to maintain internal control over financial reporting; changes in the laws and regulations, affecting among other things, availability, pricing and
reimbursement of pharmaceutical products; the highly competitive nature of the pharmaceutical industry; Allergan’s ability to successfully navigate consolidation of our distribution network and concentration of our customer base; the
difficulty of predicting the timing or outcome of pending or future litigation or government investigations; developments regarding products once they have reached the market; risks related to Allergan’s incorporation in Ireland, such
as changes in Irish law and such other risks and other uncertainties detailed in Allergan’s periodic public filings with the Securities and Exchange Commission, including but not limited to Allergan’s Annual Report on Form 10-K for the
year ended December 31, 2016 and Quarterly Report on Form 10-Q for the quarter ended September 30, 2017, and from time to time in Allergan’s other investor communications. Except as expressly required by law, Allergan
disclaims any intent or obligation to update or revise these forward-looking statements.
The Company believes that its non-GAAP measures provide useful information to investors because these are the financial measures used by our management team to evaluate our operating performance, make day to day operating
decisions, prepare internal forecasts, communicate external forward looking guidance to investors, compensate management and allocate the Company’s resources. We believe this presentation also increases comparability of period
to period results.
The Company’s determination of significant charges or credits may not be comparable to similar measures used by other companies and may vary from period to period. The Company uses both GAAP financial measures and the
disclosed non-GAAP adjusted financial measures internally. These non-GAAP adjusted financial measures are in addition to, not a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP.
2
Unlocking Value in 2018 and Beyond
4 Financial Outlook
3
Strategic Objectives to Drive Shareholder Return
4
Our Balanced Portfolio Provides Durable Growth
Driven by Volume Demand
2017 YTD* Rev Performance Drivers Reimbursed vs Cash Pay & Botox Tx
33%
33% 42%
44%
YTD
2017 2022
67% 56%
67% 58%
Cash Pay Reimbursed
US vs International
79%
21% 21% 29% 29%
YTD
2017 2022
71%
* As of Sept-30-17. Refer to Table 1 in the appendix
1. Includes new product launches. 2 Includes established brands, all other product revenues and other
79%
revenues. Includes revenues reclassified to Discontinued Operations related to the portion of Allergan product 71%
revenues sold by our former Anda Distribution Business. 3 Includes brands with patent expiration and/or risk International US
of generic competition 2018-2020
5
Extending Category Leadership in Key TAs
Promoted
Brands
Driving
Growth
Drive market Strengthen Expand into Shift paradigm Leverage Maximize value
expansion leadership in CNS new areas treatment for commercial leadership and profitability
glaucoma & retina for future launches
TA Use technology to drive Take Vraylar to $1B+ by Build on IBS leadership Shift glaucoma to Drive strong, profitable Focused, contained
Strategy consumer demand expanding indications with Linzess and Viberzi drop-less therapy growth with Lo Loestrin hospital based sales
force
Expand into skin Transform migraine Enter gastroparesis, Create a flagship Prepare for
quality/tightening; hair and depression Crohn’s and NASH with Abicipar in retina Esmya launch Launch new HAP/VAP
growth indication for Avycaz
6
Leading in Medical Aesthetics
Pioneered Facial Injectables & Plastics
CoolSculpting
Revolve Artia
(Adipose tissue) (Breast reconstruction)
>3.5M Members
~80% Unaided of Brilliant
brand awareness Distinctions 3 Decades
(80x competitor) of Market
5x # Medical Experience
Aesthetics
Sales Reps vs Differentiated
2nd largest and Durable 3,200 Articles
competitor Best-in-Class
Physician
Franchise published in
Training 12 Peer-reviewed
Journals
Indications
3 Cx / 9 Tx
Practice Building
New Customers New Therapeutic Categories
Opportunities
* Sources: Brand awareness: Direct-to-Consumer Tracker, NTX Quarterly Reporting Q2, 2015 Through Q2, 2017. Sales Reps vs. competitor: Competitive intelligence/market surveillance
8
Strengthening Leadership in CNS
Rapastinel
(MDD)
CGRPs Cariprazine
(Migraine) (Bipolar Dep.)
AGN242647 AGN241751
(Parkinson’s) (MDD)
10
Addressing Most Significant Needs in GI
Brazikumab
(Crohn’s/UC)
CVC/FXR Relamorelin
(NASH) (Gastroparesis)
First potential pro-kinetic treatment Novel IL-23 antibody Phase 2 data strongly supports
option in over 30 years anti-fibrotic activity for CVC
High unmet medical need with >2mm Targeted approach to development Optimizing long-term development
patients with moderate–severe for combination approaches
gastroparesis in US
>1.5mm US patients with Crohn’s and 6-10mm US patients with
Ulcerative Colitis (UC) advanced fibrosis
Sources:
Crohn’s and Colitis Foundation, Truven Health Analytics
International Foundation for Functional Gastrointestinal Disorders, EvaluatePharma
Angulo et al. Hepatology 1999; Matteoni et al. Gastroenterology 1999. HCC, hepatocellular carcinoma; NAFLD, nonalcoholic fatty liver disease; NASH, nonalcoholic steatohepatitis
12
Shifting the Paradigm in Eye Care Treatment
Abicipar
(AMD, DME)
Pilo/Oxy Bimatoprost SR
(Presbyopia) (Glaucoma)
7% 10% Double-
2016 2017 digit Therapeutic
PF YoY* YTD**
Model
12
Spain Turkey
Contribution
Must-win
Margin
14
Open Science and Development Model
What Distinguishes Allergan Track Record of Approved Drugs
Number of NME/BLA approvals 2009–2017 YTD1
17 16
16
>200%
industry
15
average
15
13
11
10
Source: Deloitte. A new future for R&D?: Measuring the return from pharmaceutical innovation 2017. 1. Includes new fixed-dose combinations and co-developments
Report on the Internet 2017. Data based on 2015 to 2017 average return on investment SOURCE: Mckinsey analysis based on Evaluate; FDA; Press search
Available from: deloitte.co.uk/measuringRnDreturns
15
Advancing the Pipeline Beyond 6 Stars
Estimated timelines 2017 2018 2019 2020
ESMYA FDA approval
Uterine fibroids and launch
Ubrogepant Ph. III recruitment Ph. III topline Launch
Acute migraine complete results
Atogepant Ph. IIb topline
Prophylaxis migraine results
Cariprazine Positive Ph. III Launch
Bipolar Depression topline
Rapastinel Ph. III on track Ph. III short-term
Depression topline results
Abicipar Ph. III topline Launch
AMD results
Abicipar Ph. III initiation
DME
• Restasis: Gx entry not expected prior to Q2 2018 • 2018 Net Revenues $15,000M–15,300M
17
2018 Operating Expense Reduction
> Includes cost reductions in certain field forces and promotional > Reducing internal basic research investments, de-
spending in brands facing LOE exposure and generic prioritizing lower potential programs.
competition.
> Includes optimization of key mid-late stage
> Includes increasing investments in Medical Aesthetics, other development programs.
key brands, and International.
~$6.15B*
~$5.75B–$5.85B
~$250M–$300M
~$50M–$100M
18
Revenue Growth Outlook
~5% CAGR
pipeline Outlook:
Outlook:
Declining as per
Flat to single
LOE exposure
digit decline
Outlook:
High single digit
organic growth
2017
% Revenues
70% 10% 20%
2022
% Revenues
90% 5% 5%
* Includ in 2022: Bystolic; Alphagan/Combigan; Viibryd; Saphris; Teflaro. Included in 2017: Restasis; Estrace; Aczone; Delzicol; Canasa; Namenda XR; Rapaflo
Chart not at scale
19
Why I Am Optimistic About Our Future
20
APPENDIX
21
Committed to Investment Grade Credit
and Disciplined Capital Allocation
42.6 Gross Debt reduced by
39.6 $12.2B since March 31, 2016
Gross Debt/Adj EDITDA 4.4x 4.2x 4.3x 4.3x 4.2x 4.0x 3.9x ~3.3x
Target
Long Term Leverage
Target Ratio
Gross Debt to~3x
EBITDA ~3x
22
Table 1: 2017 YTD Revenue Performance Drivers by product
The following presents Allergan plc's revenue performance by product for the nine months ended September 30, 2017 and 2016 (Unaudited; $ in millions):
Table 14
Nine Months Ended September 30, 2017 Nine Months Ended September 30, 2016 Movement
23
Total all other 272.6 873.7 277.8 18.3 1,442.4 287.4 842.5 255.0 (53.5) 1,331.4 111.0 8.3%
Total Net Revenues $ 4,921.8 $ 4,270.9 $ 2,403.6 $ 18.3 11,614.6 $ 4,240.8 $ 4,390.9 $ 2,128.1 $ (53.5) 10,706.3 $ 908.3 8.5%
Table 2
Reconciliation of illustrative GAAP loss from continuing operations to the illustrative non-GAAP performance net income
attributable to shareholders for the year ending December 31, 2018 based on the potential scenario of Non-GAAP
Performance Net Income Per Share of $15.25.
2018 at Non-GAAP
Performance Net
Income Per Share of
in millions except per share amounts $15.25
GAAP (loss) from continuing operations attributable to shareholders $ (288.8)
Adjusted for:
Amortization 6,450.0
Acquisition, integration and licensing charges 450.0
Accretion and fair-value adjustments to contingent consideration (5.0)
Impairment/asset sales and related costs 200.0
Non-recurring (gain) / losses -
Global Supply Chain Initiatives -
Legal settlements -
Income taxes on items above and other income tax adjustments (1,446.2)
Non-GAAP performance diluted net income per share attributable to shareholders $ 15.25
24
Table 3
Select Income Statement Guidance Ranges
25