DC276 Genpharm July2014

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GENPHARM OVERVIEW
July 2014

Business Overview
Creating specialty pharmaceuticals leadership in MENA …
Overview
 Genpharm is a specialty pharmaceutical
marketing and consulting company
focused on niche therapeutics and
diagnostics for rare disease

Specialty Therapeutic Focus
Women’s
Health

Immunology
Infectious Disease

Neurology

Rare Disease

Iran

Morocco
Algeria

Libya

Egypt

Saudi
Arabia

Oman
Yemen

 It provides fast and sustainable market
access into the MENA (Middle East &
North Africa) region to its strategic
partners including regulatory and
medical

Geographical Presence
Tunisia

Iraq
Jordan

Morocco
Algeria
Libya

 It provides Business Development and
market analysis for companies looking to
evaluate the potential of their portfolio in
MENA.

Syria
Lebanon

Egypt

Saudi
Arabia

Iran
Kuwait
Bahrain
Qatar

UAE

(Dubai, Headquarter)

Yemen

MENA

 It acts as the representative agent for
rare disease, biotech and specialty
pharma companies looking to enter or to
expand in the MENA

Confidential

2

Company Overview
Mission, Vision & Values
Our Vision

Mission Statement

“We strive to be the partner of
choice for multinational
healthcare
and pharmaceutical companies
expanding into the Middle East
and North Africa region.

To provide healthcare
organizations with innovative
therapeutic solutions in niche
and rare genetic disease areas,
market access strategies and
sustainable commercial
solutions,
while improving patient care
and quality of life in the Middle
East and North Africa.

Iran

We aim to consistently
differentiate ourselves by
serving all of our stakeholders
through evidence based
medicine.”

Core Values
Patient Care

Innovation

Accountability

Integrity

Teamwork

We are
dedicated to
patient care and
quality of life

We offer unique
and sustainable
solutions

We are
committed,
reliable and
results focused

We act honestly,
with inclusivity
and respect

We are positive,
professional and
transparent

Confidential

3

Targeted and Focused Positioning for
Genpharm
Genpharm is purposely positioned in the original brands market…
Segment Value by Country

Business Model Characteristics for different product types

100%
80%

1%
6%

Branded
Generics

Unprotected
Originals

Protected
widely RX

Niche
Specialty

8%

3%

1%

10%

8%

2%
8%

10%

55%

56%

52%

48%

32%

34%

38%

40%

Egypt

Jordan

Morocco

Tunisia

2%

34%
49%

60%
Unbranded
Generics

1%

40%
59%

Commodity

42%

20%

Differentiated

0%
UAE

 High Volume & Low
Margin
 Tight Control of Cost
 Focus on Supply Chain
 Purchasing professionals
are the key stakeholders
 Promote price and
service
 Seek scale to gain cost
efficiencies and market
power

 Lower Volume & High
Margin
 Emphasis on Quality
 Focus across a complex
set of stakeholders
 Promote efficacy, safety,
tolerability
 Seek differentiation to
drive demand

Original Brands

KSA

Branded Generics

Others

Unbranded Generics

Segment Volume by Country
100%

2%

1%

2%

12%

12%

16%

3%

2%

18%

17%

80%
60%

57%

61%

60%

61%

30%

27%

22%

18%

UAE

KSA

Egypt

Jordan

29%

54%
52%

40%
20%

2%

27%

18%

0%

Original Brands

Source: IMS MIDAS June 2012, Licensing Data, Rx bound
Note: RX = Protected Formula/Product

Confidential

Branded Generics

Others

Morocco

Tunisia

Unbranded Generics

4

Supportive MENA Pharmaceutical Market
Genpharm operates across the entire MENA region and in 8 countries out of
the top 10 MEA countries
MEA Pharmaceuticals Sales (€ bn)
(Top 10 by 2017 sales)
6.0
9%
5.1

14%

5.0

4.8

4.0

8%
3.4

3.4

7%
3.1

3.0

5%
31%

2.5
2.3

2.4
2.3

2.2

13%

1.9

2.0

1.9

10%
1.5

1.0
1.0

1.0

-5%

5%
0.9

1.1

1.2

1.0

0.6

0.0
KSA

Egypt

South
Africa

Algeria

Iran

Libya

Nigeria

UAE

2012 (Genpharm MEA Countries)

2012 (Non-Genpharm MEA Countries)

2017 (Genpharm MEA Countries)

2017 (Non-Genpharm MEA Countries)

Morocco

Syria

Source: IMS Health Market Prognosis May 2013. Values ex-mfn. at constant exchange rate. Revised Forecast due Sept 30 2013.

Confidential

5

Company Overview
Overview of current Products & Services

Global Pharmaceutical Manufacturers

Genpharm Services
Consultancy

Specialty Pharma

 Identify business potential

 Registration

 Recommend appropriate business & operations
models

 Marketing, Promotion & sales force effectiveness

 Recommend strategy & organization

 Importation & distribution & Tender participation

 Formulate adapted market access strategies

 Medical & PV services

 Fast track market penetration through NPS

Current Partners and Products

Aubagio

Juxtapid

Stalor
al

NIOX

Baclofe
n

ChondroCele
ct

NIPT
PrenaTest

Gene Therapy

Bemfola

Sustainable market access solutions that provide long-term value

Confidential

6

Company Milestones
In 24 months

Gene Therapy
Market Assessment
Multiple-year agreement
with Aegerion
Pharmaceutical
Signs commercializaton
agreement with Genzyme
for Aubagio in MS
Signs commercialization
and distribution agreement
for PrenaTest

Sponsors orphan
drug meeting
Geneva

Jun, 2014

Apr, 2014

Nov, 2013

Jun, 2013

Apr, 2013
Apr, 2014

Dec, 2012

Jan, 2014
Oct, 2013

Signs promotional
agreement for Stallergenes’
AIT treatments in the UAE

Holds ASPIRE
event for MENA
Neurologists

Apr, 2013

Oct, 2012
Feb, 2013

Nov, 2012

Signs agreement for
commercialization of
Bemfola

Signs
commercialization
deal for Baclofen

Sponsors Orphan
Drug Congress,
Washington

Sponsors orphan drug
meeting in Washington
DC, US

Stallergenes SA and
Genpharm Services extend
collaboration to Egypt

Signs agreement for
commercialization of
ChondroCelect

April, 2012
Genpharm starts
operations

Confidential

7

Portfolio overview
 Bemfola® is the first Swiss biosimilar recombinant FSH, approved by the EMA for the treatment of couples suffering from Infertility

Baclofen

 Baclofen® Sintetica Intrathecal is indicated severe chronic spasticity originating from Multiple Scelerosis, Trauma or other spinal
cord disorders unresponsive to other orally administered antispastic agents and/or for patients that experience serious adverse
events from orally administered doses.

 Aubagio is an FDA & EMA approved once-daily oral tablet, developed by Genzyme, A Sanofi Company, that offers an effective
alternative for patients suffering from Relapsing Multiple Sclerosis (RMS)

 Genzyme has partnered with Genpharm to commercialize Aubagio in the MENA region
 Juxtapid is an oral inhibitor of the microsomal triglyceride transfer protein (MTP) and is specifically indicated as an adjunct to a lowfat diet and other lipid-lowering treatments

 Aegerion Pharmaceuticals partnered with Genpharm to commercialize Juxtapid (Lomitapide) in the Levant region
 Staloral is a sublingual product for patients suffering from moderate to severe allergic rhinitis and/or mild to moderate allergic asthma
 Stallergenes has partnered with Genpharm to commercialize Staloral in U.A.E and Egypt

 NIOX, developed and distributed by Aerocrine/Stallergenes, is the first point-of-care medical device for measuring Fractional Exhaled
Nitric Oxide (FeNO)
 Stallergenes partnered with Genpharm to commercialize NIOX in the U.A.E
 ChondroCelect is the only approved somatic cell therapy product from TiGenix, Belgium for repair of cartilage lesions in the knee
using characterized viable autologous cartilage cells
 TiGenix NV partnered with Genpharm for commercialization of ChondroCelect in the GCC and Levant region
 PrenaTest is the first Non Invasive Prenatal Diagnostic (NIPD) developed by LifeCodexx in Germany for the detection of Down’s
syndrome, Edwards Syndrome and Patau Syndrome
 LifeCodexx AG partnered with BioGen Medical and Genpharm for the commercialization and distribution of PrenaTest in Turkey, the
Middle East and Gulf regions

Confidential

8

Experienced Management Team

Mr. Karim Smaira
Co-founder & CEO

Mr. Kamel Ghammachi
Co-founder & Managing Partner

 14 years of regional experience in
Senior Executive roles in the Pharma
industry

 More than 25 years of regional Pharma
experience in Senior Executive roles
within MNCs & Distributors.

 Launched and managed operations for
several Biotech and rare disease products
including (go to market strategies &
funding)

 Established and Managed several regional
offices in MENA
 Pharmaceutical entrepreneur with several
start ups in the region, active member of
several industry associations and business
councils

 Wide expertise and network in emerging
markets, in particular in the Middle East &
North Africa Region as well as in South
East Europe and Russia.

 Active member of several industry
associations and business councils

 Honored by Rotary several times as Paul
Harris Fellow for meeting outstanding
personal, professional standards and
charitable work.

 Member of the Diplomatic Circle in Geneva
and Public speaker on industry matters

 Several awards recognizing successful
businesses in MENA

Confidential

9

Senior Non-Executive Board

Mr. Franck
Latrille
 CEO NextPharma
 Former Deputy CEO
Merck-Serono, Executive
Vice President
International and
emerging markets MerckSerono
 Former Head of product
development at
SERONO

Mr. Rick
Pudner

Sheikh Yasser
Naghi

Mr. Dave
Dimmell

 Board Director Emirates
Islamic Bank

 Chairman of the
Cigalah group, a leading
pharmaceutical company
and distributor in KSA &
part of the Naghi holding

 Head of Corporate
Banking HSBC Middle
East; President and CEO
of HSBC Korea

 Founding member of the
Swiss Arab Postgraduate
Clinical Acedemy
(SAPCA in 2010)

 Director in Emirates Fund
Managers (Jersey)
Limited, and a founder
member of Visa CEMEA
Advisory Forum

 Board Member of several
industrial and business
groups in KSA

 Founding Partner &
Managing Director of
Genyx LLC
consultancy,
specializing in
management consulting,
staff engagement and
alignment, employee
assessment, senior
executive coaching in
several industries
including Pharma.

 CEO of Emirates NBD;
the largest regional
bank by Assets

 Former Vice President of
Pearson Higher
Education, UK
 Former Vice President of
Nelsom Education,
Canada

Confidential

10

Holistic Market Approach
Physicians
Government
Programs

Scientific
Societies

Patient
Associations

Purchasers

Distributors

Health Insurance
Hospital
Pharmacies

11

Delivering new drugs to MENA markets
Genpharm masters product registration and commercialization across MENA
Commercial and supply chain: Channels and networks
 Direct management of a network of distributors chosen
over more than 40 years of experience

Algeria

Iran

Private

Some Gvt.

Social Sec.

Registration: Background and Insights

Slow Reg. ~3 years

Jordan
KSA
Yemen

Lebanon

Egypt
Morocco

Iraq

UAE
Qatar

Tunisia

Libya

Avg. ~15-18months

Bahrein
Kuwait

 Logistics and distribution managed through well
established sub-distributors with solid financials
 Direct relationship with purhcasing departments of major
hospitals across MENA

Rapid Reg ~12month

 Pre-registration sales for early returns

 Scrip generation through KOL management and strong
network with major institutions
 Active role in Pharma forums in the region.

 Registration friendly environment in GCC
 Possibility for centralized registration procedure & fast track

 Pricing Harmonization & International referencing system
 Government coverage for nationals and privatization trend

 Established reputation of Genpharm management in the
Pharma industry

Confidential

12

Which Path to Maximal Strategic Value ?
Long term ambitions : Growth and Sustainability

2012-2013: The party
to talk to

2016 and >: Emerging pharma
company leader

2014-2016: The spec
pharma in progress

Revenue

Proprietary Branded
Products

Major Products Acquisition

DX/Med Device
Unit
Business Development
10+ Products

2012

2013

2014

2015

2016

2017

13

Supportive MENA Pharmaceutical Market
Middle East is one of the fastest growing pharma markets
Central & Eastern Europe
Size: € 48-56 bn
CAGR (2013-17): 4% to 7%

North America
Size: € 276-298 bn
CAGR (2013-17): 1% to 4%

Western Europe
Size: € 128-150 bn
CAGR (2013-17): -2% to 4%

Middle East
Size: € 12-19 bn
CAGR (2013-17): 12% to 14%

Asia Pacific
Size: € 202-216 bn
CAGR (2013-17): 12% to 15%

Africa
Size: € 19-26 bn
CAGR (2013-17): 7% to 10%

Latin America
Size: € 71-78 bn
CAGR (2013-17): 10% to 13%

High Growth
(12% to 15%)

High-Mid Growth
(7% to 13%)

Low-Mid Growth
(4% to 7%)

Low Growth
(< 4%)

Source: IMS Market Prognosis, Apr 2013
Note: Western Europe includes EU5 and rest of Western Europe; Size: 2013-2017, CAGR is between 2013-2017

Confidential

14

Strong MENA Macro Background
MENA population growth to outpace other economic groups
GDP per capita €, 2012

Population Growth (CAGR 2013-2018)
Qatar

2.5%
2.0%

Top Countries
where
Genpharm
Operates

0.8%

1.0%

0.7%
0.5%

0.0%
MENA Countries

18,540

KSA

17,931

Bahrain

17,223

17
30
31
33

7,539

Iran

5,270

Iraq

4,610

Jordan

3,567

Egypt

2,275

66
78
87
99
123

Developed Countries
MENA

Population, 2012 (mn)

450
400

Developing Countries

11

32,007

Oman

Lebanon

2

35,653

UAE

1.5%

Rank out of 188
countries

76,595

Kuwait
2.0%

#

5,892

390
320

350

Russia

346
Developing
Economies

300
250

Brazil
China
India

10,457

48

8,305

62

4,439

89

1,097

143

200
150

US

100

Developed
Economies

50

37,805

Germany

10

30,611

UK

21

28,633

23

MENA Total

Top 5 European
Countries

North America
Global

7,572

Source: IMF Data
Note: Developing Countries - China, India, Brazil & Russia; Developed Countries - US, Germany, UK & Canada; North America - US & Canada; KSA stands for Saudi Arabia; Top 5 European Countries – UK, Germany, France, Italy, Spain; MENA
Countries - Algeria, Bahrain, Djibouti, Egypt, Iran, Iraq, Jordan, Kuwait, Lebanon, Libya, Mauritania, Morocco, Oman, Qatar, Saudi Arabia, Syria, Tunisia, UAE & Yemen; Conversion rate used across slides: 1 US$ = € 0.73118

Confidential

15

Strong MENA Macro Background
Strong GDP growth provides an upside to healthcare spend
Average GDP Growth (2013-2018)

8.0%

7.1%

7.2%

7.0%

6.1%

6.0%

5.8%

5.0%

5.0%

4.2% 4.2% 4.0% 3.8%
3.8% 3.7% 3.6%
3.5% 3.2%

4.0%

4.1%
3.1%

2.8%

3.1%

3.8%
2.9%

3.0%
1.9%

1.4%

2.0%

1.2%

1.0%

1

MENA

India

China

Global

Germany

UK

US

Brazil

Russia

India

China

MENA

Iran

Kuwait

Lebanon

Egypt

Algeria

UAE

Bahrain

Oman

Jordan

Tunisia

KSA

Morocco

Qatar

Iraq

0.0%

United States

Health expenditure
per capita:

€ 394

Health expenditure
per capita:

€ 103

Health expenditure
per capita:

€ 316

Health expenditure
per capita:

€ 6,294

Health expenditure
% of GDP:

4.6%

Health expenditure
% of GDP:

3.9%

Health expenditure
% of GDP:

5.2%

Health expenditure
% of GDP:

17.9%

Source: IMF, World Bank
Note: (1) MENA comprises Arab World and Iran; Health Expenditure - Data is for 2011, Healthcare expenditure per capita PPP (constant 2005 international $ converted to Euro)

Confidential

16

Targeted and Focused Positioning for
Genpharm
…and in the orphan drug market which is consistently outgrowing the
non orphan drug market
Global Orphan Drugs Growth

Global Orphan Drug Sales (€bn)

100.0

Global Non-Orphan Drugs Growth
92.9

22%
21%

90.0

80.0

86.3

80.4
18%

76.0
70.2

15%

70.0

65.8
13%

13%

60.7

60.0
57.0
50.5
50.0

9%
9%

40.0

8%

40.9

8%
33.6

8%

8%

44.6

7%

7%

6%

8%

6%

7%

27.8

30.0

5%

24.1

4%

4%

3%
20.0

4%

3%

2%
1%
0%

10.0
-3%
0.0

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

Source: EvaluatePharma, April 2013

Confidential

17

Targeted and Focused Positioning for
Genpharm
Genpharm is well positioned in market segments that offer a number of
attractive commercial characteristics:
 The rare disease drugs are highly priced

 Genpharm operates in the niche,

due to their research and development

rare disease/Orphan Drug markets

cost. Customers are typically government

where the number of patients and

High Value
Products

prescribing physicians is limited

hospitals and similar institutions with a

Institutional
Customers

substantial budget for their patients.
 Innovative products for unmet medical

 Genpharm manages all

needs are given fast approval and

stakeholders including Physicians,

reimbursement pathway

Patient groups, Payers and

[…]

Distributors

 Need of a highly competent,

Limited Number
Of Prescribers /
Physicians

Fast track
Registrations

 Robust local expertise & knowledge of
the local processes
 Existing network with key decision
maker centers and stakeholders

evidence based selling and

markets further helps to access

promotion approach through a

regional markets and help companies

limited number of KAMs/MSLs

Named Patient
Sales

with fast track registrations

 For unmet medical needs and specialty therapeutic, products can be
purchased on a Name Patient Sales basis prior to registration.
 Fast track market access and market penetration. Early sales upside

Confidential

18

Genpharm Summary
Strong MENA
Macro
Background

 MENA’s fast growing economy
 High GDP per capita levels
 Rising income levels, increase in literacy levels,
higher healthcare spend by government

Supportive MENA
Pharmaceutical
Market

Senior Non-Exec
Board

 Middle East markets are expected to

 Genpharm has strong and
high-profile board of non-

grow from €12bn in 2012 to €19

executive members that

bn in 2017, 12-14% growth is among

bring along comprehensive
experience

GENPHARM

Strong
Management
Team

the highest in the world

Targeted and
Focused
Positioning
 Genpharm operates in fast growing Orphan drug

 Genpharm has an experienced

management team and extensive

market that is expected to reach € 93 bn by

network with key stakeholders

2018, while there are ~2.8 mn people in the
Middle East that are affected by rare disease

Confidential

19

For enquiries and contact:

Dubai Biotechnology & Research Park
P.O. Box 8145
Dubai, United Arab Emirates
Tel: +971 4 4227010
info@genpharmservices.com
www.genpharmservices.com



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