VIFOR PHARMA The next chapter Abdul Mullick Head Global Marketing Financial Analysts’ Conference, 10 March 2015 THE GALENICA GROUP – EXCELLENCE IN THE HEALTHCARE MARKET Executive summary – We are on a journey to the next chapter in our history. – Maximising our existing assets, especially Ferinject®, is key. – We have a proven legacy, and have established market leadership despite intense competition. – The next chapter involves substantive market building to address huge unmet medical need. – A more intense focus will help ensure we are successful. – New governance structure will ensure entrepreneurial thinking, empowered and accountable teams, and disciplined execution. 2 © Galenica Group 10.03.2015 The destination Vifor Pharma will become a successful, stand-alone global specialty pharma company within two to four years. 3 © Galenica Group 10.03.2015 All assets are not created equal Global Region Europe High High VNF 16% BV 27% DX 2% VNF 39% MTF 10% UV 43% FJ 23% Dic 10% CAGR* market growth CAGR* market growth Dic 6% FJ 60% BV 41% UV 14% MTF 11% DX 3% Low Low Low High Low Global brand sales growth Sales Value share MAT in reference market UV 43% 4 © Galenica Group 10.03.2015 High Global brand sales growth Ferinject Venofer Maltofer Amylofer Dicynone Doxium Uro-Vaxom Velphoro Broncho-Vaxom Ferinject®: Clear blockbuster potential Large unmet need Focused call point Clinical data Differentiated profile Patent protected Good margin Patient outcomes 5 © Galenica Group 10.03.2015 Europe: Market leadership Intravenous (i.v.) iron market share (value) in Europe 64% Ferinject® market share (value) Ferinject® 59% Switzerland 93% 76% Germany Netherlands 73% 40% France 52% 44% Spain 53% 50% 40% 40% 31% 34% 22% 23% 18% 15% Venofer® 10% 4% 2% YR 2009 YR 2010 YR 2011 YR 2012 YR 2013 MAT 12/2014 ISS and others UK Source IMS 6 © Galenica Group 10.03.2015 Source: IMS Midas 2014 USA and Australia: Off to a strong start USA: i.v. iron market share (%) in value 55 49 49 53 45 22 21 25 All others Venofer® Amylofer® Feraheme® 48 51 IPC similars i.v. 19 20 45 Australia: i.v. market value (millions) 18 17 Infed® Ferinject® 21 18 10.1 29 31 29 36 37 36 ® Injectafer 28 2.6 0.9 Jun Jul Aug Sep Oct Nov Dec MAT 12/14 2014 7 © Galenica Group 10.03.2015 2009 2010 2011 2012 2013 2014 Source: IMS Midas 2014 Growth coming predominantly from in category switch Top 8 European markets – Value (CHF millions) Ferinject® Other 250 +16% 200 +3% +21% +10% 150 -5% -4% +7% -5% -9% -4% 100 50 +45% +35% +50% +31% +12% 2010 2011 2012 2013 MAT 2014 0 2009 Source IMS i.v. Iron market EU 8: AT, BE, DE, FR, IT, ES, CH, UK 8 © Galenica Group 10.03.2015 Huge unmet medical need: Opportunity to further accelerate Ferinject® growth by market building Nephrology Dialysis Disease Prevalence Ob/Gyn ND-CKD CHF CIA IBD PBM HUB PP 6.5% 2.1% 1.18% 0.37% 0.39% 12% 1.02% Patients with disease* 0.27m 22m 7m 4m 1.2m 1.3m 12.6m 4.2m Prevalence of ID or IDA* 100% 5.2% IDA 37% ID 40% ID 65% IDA 30% IDA 50% IDA 20% IDA Anaemic patients with disease* 0.27m 2.1m 2.6m 1.6m 0.8m 0.4m 6.3m 0.4m Anaemic patients with disease* - Total 0.27m 14.2m Diagnosed patients seen by specialist* 3.5 million 0.5 million no treatment oral iron blood transfusion ESA i.v. iron alone and in all combinations alone and in combinations without i.v. iron alone and in all combinations >90% 14.5% 54% 6.5% 18% 7% i.v. iron *Estimation 9 © Galenica Group 10.03.2015 Basis: Population EU15 (Austria, Belgium, Denmark, Finland, France, Germany, Greece, Italy, Luxembourg, Netherlands, Portugal, Spain, Sweden, United Kingdom, Norway) + Switzerland 2009: 402 Mio ‹#› © Galenica Group 06.02.2015 Ferinject® value proposition differs by patient population IBD ND-CKD CHF ONCO PBM Pregnancy/PP Fatigue Medical need Data Guidelines Accessibility Acceptance of i.v. Benefit perceived by patient Knowledge/Interest level 15 Additional annual sales and market costs and costs for additional data (CHF mio.) Increasing difficulty to activate WH Prioritized therapy areas 10 PBM 5 Cardio Gastro Hem-Onc Nephro 0 Near term (<3 yrs) 11 © Galenica Group 10.03.2015 Medium term (3-5 yrs) Long term (3-5 yrs) 10 markets drive >70% of Ferinject® revenue and growth net sales growth 1 United States 2 3 United Kingdom 4 5 Spain Saudi Arabia 6 7 Italy Australia 8 9 Switzerland Austria 10 12 © Galenica Group 10.03.2015 Germany Brazil Focused & systematic strategic plan development 13 © Galenica Group 10.03.2015 Focused & systematic strategic plan development BO 1 BO 2 BO 3 BO 4 BO 5 Focused & systematic strategic plan development Drivers BO 2 BO 1 BO 2 BO 3 BO 4 BO 4 BO 5 BO 5 15 © Galenica Group 10.03.2015 Priority Behavioural Objectives + Strategic Imperatives − ‘we need to’ Barriers Ferinject® strategy 2015 – 2018: Grow market. Protect flank. GASTRO Chronic Heart Failure Strategic imperatives Drive awareness of burden of iron deficiency (ID)* Demonstrate superiority of i.v. vs. oral iron Reinforce + benefit/risk profile of i.v. iron Strengthen Ferinject® differentiation *ID includes IDA 16 © Galenica Group 10.03.2015 New Governance Structure: Increased empowerment and accountability. Disciplined execution. Vifor Pharma Executive Committee (EC) Pipeline Committee (PLC) In-line Committee (ILC) All pipeline projects Incl. in-line brand projects aiming at label changes and/or geographical expansions requiring technical and/or clinical development (e.g. clinical Ph.III trials,..) Currently marketed products, life cycle management, portfolio pruning, management of late stage development assets and acquisition of commercial stage assets. Global Core Team (GCT) Vifor Pharma EEC* Main purpose: information sharing meets every quarter ‒ Decision-making guided by company level strategic planning, overall prioritisation and resource allocation at the top. ‒ Teams own both planning and implementation of key activities. *Expanded Executive Committee 17 © Galenica Group 10.03.2015 Executive Summary – We are on a journey to the next chapter in our history. – Maximising our existing assets, especially Ferinject®, is key. – We have a proven legacy, and have established market leadership despite intense competition. – The next chapter involves substantive market building to address huge unmet medical need. – A more intense focus will help ensure we are successful. – New governance structure will ensure entrepreneurial thinking, empowered and accountable teams, and disciplined execution. 18 © Galenica Group 10.03.2015