2008-09-Sandoz-Day_Meijnders-Presentation

Document Sample
2008-09-Sandoz-Day_Meijnders-Presentation Powered By Docstoc
					                Unmatched Leadership in Anti-Infectives
                Sandoz Day

                Ernst Meijnders
                Head Anti-Infectives and API Business Unit
                September 3, 2008




Sandoz: Globally strong leader in anti-infectives
    Over 60 years of biotechnology experience

    A world leader in fermentation-derived APIs
    and intermediates
    • Development                                                   Frankfurt   Schaftenau   Kundl
                                                                    (Germany)   (Austria)    (Austria)
    • Manufacturing
    • Sales                                            Granollers
                                                       (Spain)

    2,400 associates                                                                                     Turbhe
                                                                                                         (India)
                                                       Palafolls
    Dedicated third-party                              (Spain)

    sales team
                                                                    Rovereto    Lendava
                                                                    (Italy)     (Slovenia)




                                                                 Anti-Infectives production sites


2 | Sandoz Day | Ernst Meijnders | September 3, 2008




                                                                                                                   1
Anti-Infectives a respected business partner

  2007 gross anti-infective sales1                                         Key success factors:
  100% = USD 1 bn
                                                                             Biotechnology expertise
                                                        To Sandoz Retail     Commitment to quality

                                                   25%                       • Biotechnology a
                                                                               growth platform for
                                                                               leadership
                                                              To other       • Broad range of APIs,
                                                       10%                     intermediates and
                 65%                                          Novartis
                                                              businesses       fixed dosage forms
                                                                             • >400 customers
                                                                               worldwide (Rx/Gx)
      To third parties


1 including sales to other parts of the Sandoz divisions and Novartis

3 | Sandoz Day | Ernst Meijnders | September 3, 2008




Key factors for success in anti-infectives
     Excellent quality performance

     Sustainable process excellence

     Technology leadership in biochemistry

     Broad product portfolio covering market needs

     “Sharp pencils” essential to value creation




4 | Sandoz Day | Ernst Meijnders | September 3, 2008




                                                                                                       2
Excellent quality performance
      Priority #1 – patient safety with high-quality products

      Flawless regulatory audit performance during last five years
      • US, Europe, Japan, Austria and other countries

      Strict compliance to GMP and Novartis manufacturing guidelines
      • Operational compliance performance tracking of all sites

      Introducing new manufacturing technologies (PAT1, rapid testing)




1   PAT – Process Analytical Technology
5 | Sandoz Day | Ernst Meijnders | September 3, 2008




Sustainable process excellence
      World-class knowledge of biotechnology processes

      Competitive economy-of-scale operations for core products

      Flexible and efficient manufacturing capacity

      Constant focus on productivity gains




6 | Sandoz Day | Ernst Meijnders | September 3, 2008




                                                                         3
Technology leadership in biochemistry
      In-house skills and                              Example: Penicillin V productivity1
      collaborations                                     2 500%
      • Strain development
      • Genomics                                         2 000%
      • Synthesis
      • Polymorphism
                                                         1 500%

      >35% cut in energy
      consumption for large-                             1 000%
      scale fermentation                                                                    Increase through
                                                                                            continuous strain
      Reduced solvent use                                 500%
                                                                                            improvement

      • Cost savings
                                                                                            Capacity increase
      • Environmental benefits                               0%
                                                                         Status 1973
                                                              1973              1983             1995       Today

1   Indexed, 1973 = 100%
7 | Sandoz Day | Ernst Meijnders | September 3, 2008




Sandoz in the lead with antibiotic launches



                                                       Product               Brand name            Launch date
                                                       Amoxicillin /           Augmentin®          Oct 1999 – EU
                                                       clavulanic acid                             July 2002 – US
                                                       Ceftriaxone             Rocephin®           July 2005 – US
                                                       Azithromycin            Zithromax®          Nov 2005 – US
                                                       Azithromycin            Zithromax®          April 2006 – DE
                                                       Cefdinir            Omnicef® / Cefzon®      May 2007 – US




8 | Sandoz Day | Ernst Meijnders | September 3, 2008




                                                                                                                     4
Broad product portfolio to cover market needs
        Well-positioned in hospital                            Sandoz US market share in J1C1
        and community antibiotics                                                                             Amoxicillin +
                                                                  45
        • >60 ANDAs                                                                                           clavulanic acid
                                                                  40
        • >100 dosage forms
                                                                  35
        Benefits of vertical
                                                                  30
        integration – from building
        blocks to APIs                                            25
                                                                                                              Amoxicillin

        • Securing knowledge and                                  20
          cost advantages
                                                                  15

        Selected proprietary and                                  10
        exclusive synthesis for Rx
        intermediates                                             5

                                                                  0
                                                                   2006                    2007          2008
1   Source: IMS, moving annual total for Q2
9 | Sandoz Day | Ernst Meijnders | September 3, 2008




Strong presence among leading anti-infectives
Hospital market                                                        Community market
    #    Product                         2007 sales     Sandoz          #   Product               2007 sales     Sandoz
         Generic name                        (USD m)                        Generic name            (USD m)

    1    Zosyn®      (Tazocin)               1,206      In dev.         1   Levaquin®               2,489            -
         Piperacillin-Tazob.                                                Levofloxacin

    2    Rocephin®                           1,099                      2   Augmentin®              2,392
         Ceftriaxone                                                        Amoxicillin/CA

    3    Merrem®                               816      In dev.         3   Zithromax®              1,739
         Meropenem                                                          Azithromycin

    4    Primaxin®                             637      In dev.         4   Biaxin®                 1,544
         Imipenem-Cilastatin                                                Clarithromycin

    5    Levaquin®                             589         -            5   Amoxil®                 1,118
         Levofloxacin                                                       Amoxicillin

    6    Vancomycin®                           531                      6   Cipro®                  1,082
         Vancomycin                                                         Ciprofloxacin

    7    Cipro®                                444                      7   Omnicef®                 826
         Ciprofloxacin                                                      Cefdinir

    8    Fortum®                               429                      8   Avelox®                  790
         Ceftazidime                                                        Moxifloxacin

    9    Zyvox®                                383         -            9   Ceftin®                  648
         Linezolid                                                          Cefuroxim axetil

    10 Cefazolin
                 ®
                                                                       10 Zyvox
                                                                                   ®
       Cefazolin
                                               343                        Linezolid
                                                                                                     565             -
Source: IMS PADDS 2008

10 | Sandoz Day | Ernst Meijnders | September 3, 2008




                                                                                                                                5
“Sharp pencils” essential to value creation
     Industry environment mandates lean and focused operations

     Reduced COGS: Constant focus on productivity
     • Production sites, organizational structures and headcount

     Cost-competitive sourcing and supply chain network

     Favorable benchmark against the best in industry




11 | Sandoz Day | Ernst Meijnders | September 3, 2008




“Win-win” situation for Sandoz and Novartis
     Group-wide access to a world-class biotechnology platform
     • Supplier for key fermentation-based ingredients

     Competitive production costs through economies-of-scale

     Timely product launches and restocking from internal warehouses

     Global quality standards meeting highest regulatory requirements

     Provide 20% of Sandoz net sales
     • Reduce risks and dependence on external suppliers




12 | Sandoz Day | Ernst Meijnders | September 3, 2008




                                                                        6
Accelerating performance with third party sales
       Globally competitive – even as a Western manufacturer

       High customer satisfaction through key account management

       Differentiators: Broad presence, catalyst for innovation and ideas

       Sandoz and Novartis benefit from economies-of-scale effect

       Benchmarking performance gain against actual sales success




13 | Sandoz Day | Ernst Meijnders | September 3, 2008




Our priorities
     Support timely and efficient launch of new Sandoz products

     Expand portfolio with new products and life-cycle management

     Convert innovative ideas into business opportunities

     Relentlessly focus on quality products and operational efficiency

     Capture business opportunities as companies suspend
     manufacturing operations due to industry consolidation




14 | Sandoz Day | Ernst Meijnders | September 3, 2008




                                                                            7

				
DOCUMENT INFO