AstraZeneca PLC · LSE:AZN
AstraZeneca — Debt Investor Presentation (March 2023)
38 slides from AstraZeneca's debt investor presentation, Mar 27, 2023
Slide 1: Q1 2023 Results: Fixed-income investor update
Q1 2023 Results Fixed-income investor update 27 March 2023 1
Slide 2: Forward-looking statements
Forward-looking statements In order, among other things, to utilise the 'safe harbour' provisions of the US Private Securities Litigation Reform Act of 1995, AstraZeneca (hereafter ‘the Group’) provides the following cautionary statement: This document contains certain forward-looking statements wit
Slide 3: Disclaimer and Non-GAAP measures
Disclaimer This presentation is neither an offer to sell nor a solicitation of an offer to buy any securities and shall not constitute an offer, solicitation, or sale in any jurisdiction in which an offer, solicitation, or sale is unlawful. Non-GAAP measures This presentation contains financial meas
Slide 4: Key messages
Key messages AstraZeneca Q1 2023 – underlying business growth FY 2023 guidance reiterated Maintaining innovation and pipeline delivery Rapidly advancing high potential new medicines Well positioned to deliver industry-leading growth 2025+ Longer-term growth fuelled by existing portfolio and new inno
Slide 5: Business update
Business update a 4
Slide 6: Q1 2023 – 15% growth from ex-COVID-19 medicines
Q1 2023 – 15% growth from ex-COVID-19 medicines1 Stable Total Revenue, reiterating FY 2023 guidance Growth in Oncology, CVRM, R&I and Rare Disease offset decline in COVID-19 medicines Total Revenue | stable CER Core EPS | +6% CER $10.9bn $1.92 +15% Ex-COVID-19 Total Revenue Q1 2022 Q1 2023 Q1 2022 Q
Slide 7: Q1 2023 – broad-based, diverse source of business
Q1 2023 – broad-based, diverse source of business Q1 2023 | % Total Revenue by therapy area Strong growth across Oncology, CVRM, R&I and Oncology CVRM R&I V&I Rare Disease Other Rare Disease 38% 24% 15% 3% 17% 3% Emerging Markets presence and strong growth Q1 2023 | % Total Revenue by geography Valu
Slide 8: Accelerating our late-stage pipeline
Accelerating our late-stage pipeline Potential to initiate 30 Phase III trials, with six dosed to-date in 20231 Dato-DXd Dato-DXd Tezspire AZD3152 camizestrant Ultomiris AVANZAR2 TROPION-Lung072 CROSSING SUPERNOVA CAMBRIA-1 ARTEMIS 1L NSCLC non-squamous EoE COVID-19 HR+/HER2- CSA-AKI 1L NSCLC prophy
Slide 9: AstraZeneca – Q1 2023
AstraZeneca – Q1 2023 Accelerating pipeline momentum, disciplined investment fuels industry-leading growth Pipeline advances in 2023 Sustainable, long-term growth with 18 Phase III read-outs anticipated, including: Ambition through commercial execution, R&D toESG impact and improve operating margin
Slide 10: Investing to unlock next waves of innovation
Investing to unlock next waves of innovation Committed to science-led innovation investment in new platforms and technologies 156 high-impact journal manuscripts • Small molecules e.g., PROTACS, nanoparticles published1 783 • Cell-based therapy e.g., CAR-T, TReg stabilisation • Antibodies e.g., ADCs
Slide 11: Oncology – Q1 2023
Oncology – Q1 2023 19% Total Revenue growth driven by differentiated portfolio and new indication launches Oncology Q1 2023: key dynamics Q1 2023 $4.1bn, +19% at CER 4,500 • Tagrisso +15% CER, driven by global demand growth, CN recovery 4,000 • Lynparza PS +10% CER, strong PROpel EU uptake offset by
Slide 12: Oncology
Oncology Ambition for >50% of lung cancer patients to be eligible for AZN medicine by 2030 resectable Stg. I-III unresectable Stg. I-II Stg. III 1L metastatic 2L+ Leading the future of Est. epi (G7) ~200K ~30K ~70K ~350K ~290K lung cancer treatment CRT Imfinzi Imfinzi + Imjudo + CTx Imfinzi + cera
Slide 13: BioPharmaceuticals – Q1 2023
BioPharmaceuticals – Q1 2023 Increasing momentum across CVRM and R&I CVRM R&I V&I Q1 2023 $2.6bn, +22% at CER Q1 2023 $1.6bn, +8% at CER Q1 2023 $355m, -79% at CER 3,000 1,800 2,500 1,600 2,500 1,400 2,000 2,000 1,200 1,000 1,500 Total Revenue ($m) Total Revenue ($m) Total Revenue ($m) 1,500 800 1,0
Slide 14: BioPharmaceuticals – Q1 2023
BioPharmaceuticals – Q1 2023 Key medicines driving R&I growth Building launch momentum in R&I +46% growth in Q1 from key R&I medicines Total Revenue ($m) Total Revenue ($m) 54 Fasenra • Tezspire • Saphnelo • Breztri 308 338 260 0 3 Fasenra Tezspire Q1 Q1 Q1 Q1 Q1 Q1 2021 2022 2021 2023 2021 2021 202
Slide 15: Rare Disease – Q1 2023
Rare Disease – Q1 2023 Accelerated conversion in C5, continued strength beyond complement Rare Disease Q1 2023: key dynamics Q1 2023 $1.9bn, +14% at CER 2,000 Durable C5 Franchise growth 1,800 1,600 • Ultomiris +61% driven by successful conversion from Soliris, new 1,400 patients and market expansio
Slide 16: Artificial Intelligence at AstraZeneca
Artificial Intelligence at AstraZeneca Leadership in AI is transforming the way we work and pace of innovation AI is embedded across our organisation R&D • OPERATIONS • COMMERCIAL 400+ Drug discovery and development Regulatory submission and monitoring Manufacturing and supply Commercial launch and
Slide 17: AI in R&D
AI in R&D Accelerating the time to deliver clinical leads DRUG DISCOVERY & DEVELOPMENT | reinventing the traditional drug discovery process Knowledge graphs | Accelerating discovery speed | small and large molecules empowering data insights Traditional process generated 0 leads over 3 months Generat
Slide 18: Financial update
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Slide 19: Q1 2023 – Reported profit and loss
Q1 2023 – Reported profit and loss Q1 2023 CER change % Total $m % Revenue Total Revenue 10,879 - 100 - Product Sales 10,566 1 97 - Alliance Revenue 286 90 3 - Collaboration Revenue 27 (89) - Gross margin 82.0% +14 pp Total operating expense1 (6,804) - 63 - R&D expense (2,611) 28 24 - SG&A expense (
Slide 20: Q1 2023 – Core profit and loss
Q1 2023 – Core profit and loss Q1 2023 CER change % Total $m % Revenue Total Revenue 10,879 - 100 - Product Sales 10,566 1 97 - Alliance Revenue 286 90 3 - Collaboration Revenue 27 (89) - Gross margin 83.3% +4 pp Total operating expense1 (5,488) 9 50 - R&D expense (2,300) 10 21 - SG&A expense (3,054
Slide 21: Cash Flow, Net Debt and 2023 Financial Guidance
Cash Flow, Net Debt and 2023 Financial Guidance Continued EBITDA improvement Net Debt bridge Reiterating 2023 Guidance $bn Total Revenue • Excluding COVID-19 medicines: low double-digit % growth BIBP low-to-mid single-digit % • Including COVID-19 medicines: growth Core EPS Net debt CFO Capex Deal pa
Slide 22: Net debt position
Net debt position 31-Mar-23 31-Dec-22 $m $m Gross debt (31,503) (29,232) Cash & cash equivalents 6,232 6,166 Other investments 230 239 Net derivative financial instruments (21) (96) Closing net debt 1 (25,062) (22,923) 1. Net debt is a non-GAAP measure. The equivalent GAAP measure to Net debt is ‘li
Slide 23: Liquidity, debt and rating summary
Liquidity, debt and rating summary • Strong liquidity at 31 March 2022 • Group cash and investments of $6.4bn • Undrawn $4.9bn committed bank facilities which mature in 2026 • On 2 February 2023, the Group entered into an additional $2bn of two year committed bank facilities. • Access to diverse sou
Slide 24: Smooth debt maturity profile with eight-year average life
Smooth debt maturity profile with eight-year average life Debt Maturity Profile at 31 March 2023 1 5,000 4,500 4,000 3,500 3,000 $m 2,500 2,000 1,500 1,000 500 0 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2037 2042 2045 2048 2050 2051 USD Commercial Paper Overdrafts, finance leases & ban
Slide 25: Q1 2023 Results
Q1 2023 Results Fixed-income investor update 27 March 2023 25
Slide 26: Appendix
Appendix
Slide 27: Emerging Markets – Q1 2023
A P P E N D I X | Emerging Markets Emerging Markets – Q1 2023 Total Revenue +1% at CER to $3.2bn. +22% at CER excluding COVID-19 medicines 4,000 3,500 3,000 2,500 Total Revenue ($m) 2,000 1,500 1,000 500 0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2021 2022 2023 China Emerging Markets ex. China COVID-19 medicines 27
Slide 28: Delivering on science-led innovation
A P P E N D I X | Pipeline Highlights Delivering on science-led innovation Selected key pipeline highlights since Q4/FY 2022 results Oncology BioPharmaceuticals Rare Disease 5 regulatory approvals in major markets, including: Imfinzi +/- Imjudo (EU) Calquence (EU) non-small cell lung cancer (1st-lin
Slide 29: Oncology – R&D highlights
A P P E N D I X | Q1 R&D highlights Oncology – R&D highlights Moving into earlier lines of lung cancer with highest potential for cure AEGEAN: updated pCR and interim EFS ADAURA: final OS Imfinzi-based treatment before and adjuvant Tagrisso in early stage EGFRm NSCLC after surgery in early-stage NSC
Slide 30: Oncology – R&D highlights
A P P E N D I X | Q1 R&D highlights Oncology – R&D highlights AACR demonstrates harnessing of in-house capabilities to build early-stage pipeline Preclinical data for three AstraZeneca First clinical data for CAR-T therapy in-house developed ADCs Best tumour shrinkage (per RECIST v1.1, n=6) EGFR cME
Slide 31: BioPharmaceuticals – R&D highlights: respiratory portfolio
A P P E N D I X | Q1 R&D highlights BioPharmaceuticals – R&D highlights Leading respiratory portfolio across asthma and COPD Inhaled maintenance therapy Novel oral / inhaled add-ons Novel systemic biologics 35m patients1 6m patients1 2m patients1 Airsupra Novel atuliflapon Tezspire (ICS/SABA) oral (
Slide 32: BioPharmaceuticals – R&D highlights
A P P E N D I X | Q1 R&D highlights BioPharmaceuticals – R&D highlights Congress highlights at AAN and ECCMID eplontersen in ATTRv-PN AZD3152 NEURO-TTRansform Phase III final analysis (66 wk) long-acting COVID-19 antibody -14.5% -81.2% 0 35 65 8.2 -3.6 0 35 66 Weeks Met co-primary endpoints, with fa
Slide 33: Rare Disease – R&D highlights
A P P E N D I X | Q1 R&D highlights Rare Disease – R&D highlights Pioneering in rare neurology to improve patient outcomes Soliris gMG registry1 gefurulimab (ALXN1720) oral corticosteroid usage decreased over time pipeline expansion to further extend C5 leadership α-C5 α-Alb C5 bi-specific, heavy ch
Slide 34: Rare Disease – R&D: Industry-leading Factor D portfolio
A P P E N D I X | Q1 R&D highlights Rare Disease – R&D Industry-leading Factor D portfolio Factor D inhibition Factor D portfolio more tractable target, lower circulating concentration in plasma novel small molecule assets with high affinity for Factor D dosing development status danicopan PNH-EVH s
Slide 35: 2022 Sustainability highlights
A P P E N D I X | ESG & Corporate Sustainability 2022 Sustainability highlights Progress on our overall Access to Healthcare Environmental protection Ethics and transparency strategy includes: 14 126,684 59.3% 49.5% public and private sector organisations healthcare workers and others trained1 reduc
Slide 36: Q1 2023 Reconciliation of Reported to Core Financial Measures
A P P E N D I X | Q1 Financial Highlights Q1 2023 Reconciliation of Reported to Core Financial Measures Intangible Asset Acquisition of Reported Restructuring Amortisation & Other1 Core2 Alexion Impairments $m $m $m $m $m $m Gross Profit 8,974 95 8 37 2 9,116 Distribution Expense (134) - - - - (134)
Slide 37: Prudent treasury risk-management policies
A P P E N D I X | Treasury Policy Prudent treasury risk-management policies The Company operates with a centralised Treasury structure so that key Treasury risks are managed at a Group level. Liquidity Policy • Prudent level of available cash and unutilised credit facilities • Group funding centrall
Slide 38: Use of AstraZeneca slides from conference calls and webcasts
Use of AstraZeneca slides from conference calls and webcasts The AstraZeneca webcast, conference call and presentation slides (together the ‘AstraZeneca materials’) are for your personal, non-commercial use only. You may not copy, reproduce, republish, post, broadcast, transmit, make available to th
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