Company Overview & Future Perspective

Transcription

1 Company Overview & Future Perspective Hiromasa Suzuki, Ph.D. President and CEO J.P. MORGAN HEALTHCARE CONFERENCE JANUARY 12, 2015 SAN FRANCISCO, CA 0 Forward-Looking Statements This presentation contains forward-looking statements regarding the Company's plans, outlook, strategies, and results for the future. All forward-looking statements are based on judgments derived from the information available to the Company at this time. Forward looking statements can sometimes be identified by the use of forward-looking words such as "may," "believe," "will," "expect," "project," "estimate," "should," "anticipate," "plan," "continue," "seek," "pro forma," "potential," "target, " "forecast," or "intend" or other similar words or expressions of the negative thereof. Certain risks and uncertainties could cause the Company's actual results to differ materially from any forward looking statements contained in this presentation. These risks and uncertainties include, but are not limited to, the economic situation, fluctuation of the exchange rate, change of regulatory, statutory, and administrative requirements, delay or failure of launch of new products or services, competitive pressures, and decline of the sales potential of existing products. We assume no obligation to update or revise any forward-looking statements or other information contained in this presentation, whether as a result of new information, future events, or otherwise. 1

2 Miraca Group Business Outline Business Segments & Companies Clinical Laboratory Testing (CLT) HR (14%) In-vitro Diagnostics (IVD) Healthcare Related (HR) IVD (21%) FY2013 Annual Sales CLT (65%) 2 Origin of Miraca and History Future Science /4/1 2005/7/ Foundation 1970 Spin-off 1987 Listed on TSE 1 st Section Holding 1/3 shares 2001 Listed on TSE 1 st Section (New) Our goal : a Global Life Science Company 3

3 Miraca IVD at a glance No. 2 share in Japanese Immuno Dx market JPN Immunology Market share (tumor marker, infectious disease, and immunology) Miraca 12% Stable growth in net sales and high profitability World class reagent development technology ensuring high valueadded products 4 Miraca IVD Products Tumor Markers business (US)* OEM, raw materials & license *(former Centocor markers) Net sales by product segment LUMIPULSE (Automated immunoassay) Other products Chemiluminescent Enzyme Immunoassay (CLEIA) Alzheimer s disease screening Influenza test kit (As of March 31, 2014) 5

4 Miraca CLT (J) at a glance No.1 share in Japanese CLT market Miraca 21% Stable growth in net sales and significant increase in profit Leading company in esoteric testing area &Trust from doctors 70% market share in chromosomal testing Over 80% of large hospitals are our customers Strong relationships with KOLs 6 Miraca CLT Business Flow in Japan Medical institutes (Customers) Collection of specimen by our staff Specimen Test results Business offices Number of our customers: Hospitals: approx. 3,000 GP(Clinics): approx. 7,000 Web-based reporting Laboratories Over 90 offices in Japan Specimen Test results Lean lab operation 25 laboratories in Japan 7

5 Miraca CLT (US) Current Status Nov Acquired US AP business (Current MLS) HQ in Irving, TX High quality pathology laboratories with almost 90 pathologists Subspecialties: GI, Derm, Heme, GU FY Price decline due to significant reimbursement reduction (TC of CPT88305 down by 52%) - MLS acquired PLUS Diagnostics in Oct FY Organic sales growth and cost reductions are on-going No.1 AP-specialized CLT company in the US 8 Baylor Miraca Genetics Laboratories (US) Joint Venture on Clinical Genetic Testing with Baylor College of Medicine Objective Acquire operation in the field of advanced clinical genetic testing Accelerate processing practical application of innovative technology Enhance bland value Highly advanced genetic testing technology Baylor College of Medicine (BCM) Medical Genetics Laboratories 9

6 Strategy and Financials Japanese market Global market IVD Fujirebio Miraca IVD (sales in EU/US/Asia) CLT SRL MLS BMGL Labs in Asia 10 Miraca Corporate Strategy (Mid-term) Transformation to Global Life Science Company 1 Sustain Strong Core Portfolio - No. 1 or 2 share in market #1 in CLT MKT in JP #2 in Immuno-Dx MKT in JP #1 in Sterilization MKT in JP 2 Growth in Global IVD - Global Sales Channel Expansion Aim # 1 position in US high valueadded Testing 3 Investment in Future R&D in Innovative IVD Technologies IT for Operational Excellence & Big Data M&A as strategic option 11

7 1 Next Generation System: Japan CLT Transformation across the value chain IT/Web Real-time 24/7/365 Lab network Operation transformation New values Cloud-based IT system Real-time assay and reporting Around the clock operation Develop satellite lab network across the nation Automation and lean lab operation From line assay to cell assay Shorter TAT Traceability Digitalized data Reliability Cost efficiency Go to GP market as new growth field Win in Japan and secure rock-solid #1 position 12 2 Growth in global :IVD Global Expansion Accelerate Global Expansion by LUMIPULSE Differentiate by Vitamin D products Target: large hospitals w/ direct sales Differentiate by Hepatitis products Partnership w/ strong local distributors Global Strategic Product New entry in FY2015 Target: 800 installed base by FY

8 2 Growth in global: CLT in US #1 in high quality & value added testing fields Anatomic Pathology Genetic Testing (Expected Closing on Feb 15) # 1 independent AP player in US BCM* as # 1 Genetic Program in US Strategic direction Focus on high quality service IT connectivity as value proposition Consolidate acquired Labs Strategic direction Innovative tests development Market Penetration High quality /efficient operation Aim #1 position in both fields 14 BCM Baylor College of Medicine / JV partner 3 Investment in the future: M&A Consolidated net sales Contribution of M&A: +5.7% Organic growth: +2.4% 2010: Innogenetics (current FRE) Acquired sales base in Europe 2010: JCL Acquired regional lab in Japan 2011: Caris (current MLS) Acquired US AP business 2013: PLUS Diagnostics Strengthened US AP business 15

9 3 Investment in the future: M&A Actively pursuing new opportunities Investment thesis 1 2 Competitiveness through roll-up and consolidation (IVD / CLT in Japan, CLT(AP) in US) Market entry in IVD / CLT new geographic fields 3 New product / service / technologies to strengthen our Core 16 Financial Performance EBITDA = Operating income + Depreciation + Amortization of goodwill 17

10 Shareholder Return Dividend increase along with EPS increase Maintaining payout ratio: over 30% 18 Issues we face toward becoming a truly globalized company 19

11 Aiming to become a Global Life Science Company 20 Contact address regarding this material: IR Public Relations Group ir@miraca-holdings.co.jp Website: 21