Astrazeneca Plc · LSE:AZN
Astrazeneca — Merger or Acquisition (November 2015)
19 slides from Astrazeneca's merger presentation, Nov 6, 2015
Slide 1: Acquisition of ZS Pharma
Acquisition of ZS Pharma Conference call 6 November 2015
Slide 2: Forward-looking statements
Forward-looking statements This document contains certain forward-looking statements with respect to the operations, performance and financial condition of the Group, including, among other things, statements about expected revenues, margins, earnings per share or other financial or other measures
Slide 3: Forward-looking statements continued
Forward-looking statements continued Some of the statements contained in this announcement are forward-looking statements, including statements regarding the expected consummation of the acquisition, which involves a number of risks and uncertainties, including the satisfaction of closing conditio
Slide 4: Agenda
Agenda Overview Pascal Soriot Opportunity Luke Miels Clinical Sean Bohen Terms Marc Dunoyer Summary Pascal Soriot 4
Slide 5: Overview
Overview Strengthens focus in Cardiovascular & Metabolic Disease • Adds ZS-9, potential best-in-class specialty treatment • Leverages roxadustat and Diabetes franchise Hyperkalaemia can be a life-threatening condition • Chronic kidney disease (CKD) and chronic heart failure (CHF) with increasing
Slide 6: Cardiovascular & Metabolic Disease strategy
Cardiovascular & Metabolic Disease strategy Reducing cardiovascular morbidity, mortality and organ damage by addressing multiple risk factors Cardiovascular Metabolism CKD • ZS-9 cardio-renal opportunity with potential launch in 2016 • Leverages roxadustat and Diabetes franchise 6
Slide 7: About ZS Pharma
About ZS Pharma • Publicly traded (NASDAQ: ZSPH) • Founded in 2008;; headquartered in San Mateo, California • Development manufacturing site in Coppell, Texas • ~200 employees • Strong expertise, know-how and capabilities in CKD • Net cash position 7
Slide 8: Hyperkalaemia is a leading cause of mortality in CKD
Hyperkalaemia is a leading cause of mortality in CKD Odds ratio of death within 24hr period after hyperkalaemia K+ level, mEq/L <5.5 ≥5.5 & ≤6.0 >6.0 31.64 19.52 10.32 11.56 8.02 5.35 5.73 1.00 1.07 1.04 1.27 2.31 None Stage 3 Stage 4 Stage 5 Severity of CKD Source: Arch I ntern Med. 22 June 2009;;
Slide 9: CKD prevalence in key markets
CKD prevalence in key markets US: 27m EU5: 29m JPN: 14m Stage 1 6.6m 3.9m 2.1m Stage 2 6.0m 5.5m 4.9m Stage 3 12.7m 18.1m 6.3m Stage 4 701k 943k 515k Stage 5 645k 365k 343k Source: Decision Resources Group, Chronic Kidney Disease Patient Base, May 2015 9
Slide 10: Medications linked to hyperkalaemia (RAAS inhibitors)
“The medications linked to hyperkalaemia that are most relevant are RAAS inhibitors (ACE inhibitors, ARBs, direct renin inhibitors and mineralocorticoid-receptor blockers).” “Maintaining the use of these beneficial medications while implementing various strategies to control potassium balance is de
Slide 11: Causes of hyperkalaemia in CKD/CHF
Causes of hyperkalaemia in CKD/CHF Those with chronic disease … … and on lifesaving RAASi therapies Affected by HK1 20 – 50% K+ CKD ACEs, ARBs and aldosterone antagonists Up to 20% High K+ cited by nephrologists CHF and cardiologists as key reason for under utilising RAASi therapy in CHF and CKD Sou
Slide 12: Limited alternative treatment options
Limited alternative treatment options 5.0 5.5 6.0 K+ level (mEq/L) Mild Moderate Severe Treatment Titrate RAASi, adjust d iet Titrate RAASi, adjust d iet, +/- Discontinue RAASi, +/- emergency kayexalate measures Current treatment options Phase I, II, III: 0 Submitted: Z S-9 Approved: patiromer Ma
Slide 13: ZS-9: Potential best-in-class treatment for hyperkalaemia
ZS-9: Potential best-in-class treatment for hyperkalaemia • Proprietary zirconium silicate compound Crystal structure • Non-systemically absorbed Ion selectivity for K+ only Zr O Si • Odourless, tasteless 5-15g once a day O Zr O • Onset of action ~2hrs Si O K+ O • No significant drug-drug inte
Slide 14: ZS-9: ~1,700 patients in clinical development programme
ZS-9: ~1,700 patients in clinical development programme Trial Published Trial type # Patients Duration Endpoint Phase II N=90 ZS002 ∆ serum K+ level Double-blind Serum K 48 hours (Completed) (3 doses) RCT 5.0–6.0 mEq/L Phase III N=753 ZS003 ∆ serum K+ level Double-blind Serum K 14 days (Completed
Slide 15: ZS-9: Efficacy summary
ZS-9: Efficacy summary Onset of action (day 1-2) Percent o f p atients K+ normalised 98% 84% • All trials met primary endpoints 50% By 2.2hrs By 24hrs By 48hrs • Trials in CKD, CHF, diabetic patients Onset of action (day 1-2) K+ decreases in severe p atients (>6.0mEq/L) • Reduction in aldosterone 0
Slide 16: ZS-9: Safety and tolerability summary
ZS-9: Safety and tolerability summary • Gastrointestinal adverse-event rates comparable to placebo (<1%) • No clinically-significant changes in sodium, magnesium or calcium levels • Few hypokalaemia cases below 3.0mEq/L • Peripheral oedema 1.0% (<2.5g), 0.0% (5g), 4.4% (10g), 10.7% (15g) and 1.7%
Slide 17: Transaction terms
Transaction terms • Upon completion ZS Pharma will become a wholly-owned subsidary • All-cash transaction to acquire all of the outstanding capital stock of ZS Pharma for $90 per share;; approximately $2.7 billion in aggregate transaction value • Merger in which each remaining untendered share of
Slide 18: Summary
Summary • Strengthens focus in Cardiovascular & Metabolic Disease • Hyperkalaemia can be a life-threatening condition • >3 million patients with hyperkaleamia in the US • Global potential peak-year sales >$1bn • Transaction supports Return to Growth strategy • Core EPS-accretive from 2018;; margi
Slide 19: Questions
Questions 19