Astrazeneca Plc · LSE:AZN
Astrazeneca — H1 2022 Earnings Presentation
40 slides from Astrazeneca's earnings presentation, Jul 29, 2022
Slide 1: H1 2022 Results
H1 2022 Results Conference call and webcast for investors and analysts 29 July 2022
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: H1 2022 Results: conference call agenda
H1 2022 Results: conference call agenda CEO Opening Remarks Pascal Soriot Chief Executive Officer Financial Results Aradhana Sarin Chief Financial Officer Dave Fredrickson EVP Oncology Business Oncology Susan Galbraith EVP Oncology R&D BioPharmaceuticals, Ruud Dobber EVP BioPharmaceuticals Business
Slide 4: CEO Opening Remarks
CEO Opening Remarks Pascal Soriot Chief Executive Officer
Slide 5: H1 2022: key updates
H1 2022: key updates Progress against our strategic objectives Robust growth Broad-based performance Science-led innovation Supported by diverse portfolio Delivering value to patients Key developments • Farxiga DELIVER Phase III data readout • Total Revenue $22.2bn (+48%) • Oncology $7.5bn (+22%) ―
Slide 6: Investing efficiently to deliver long-term sustainable growth
AstraZeneca Investing efficiently to deliver long-term sustainable growth Unprecedented Data-driven expansion for Investment in discovery pipeline delivery high value opportunities and new technology In the year to date: • Dato-DXd • ADCs • 13 Phase III starts • Enhertu • Cell therapy • 5 positive p
Slide 7: Strong 2022 outlook, well positioned to deliver growth 2025+
AstraZeneca Strong 2022 outlook, well positioned to deliver industry-leading growth 2025+ Pipeline momentum Well positioned to deliver growth 2025+ Key upcoming Phase III readouts Industry-leading portfolio and pipeline H2 2022 Robust lifecycle Innovative late- Strategic business Attractive loss of
Slide 8: Financial Results
Financial Results Aradhana Sarin Chief Financial Officer
Slide 9: Reported Profit and Loss
Reported Profit and Loss Continued strong top-line growth CER CER H1 2022 % total Q2 2022 % total change change $m revenue $m revenue % % Total Revenue 22,161 48 100 10,771 37 100 - Product Sales 21,610 47 98 10,630 38 99 - Collaboration Revenue 551 130 2 141 (20) 1 Gross margin 69.9% -4 pp 71.8% -2
Slide 10: Core Profit and Loss
Core Profit and Loss Continued operating leverage CER CER H1 2022 % total Q2 2022 % total change change $m revenue $m revenue % % Total Revenue 22,161 48 100 10,771 37 100 - Product Sales 21,610 47 98 10,630 38 99 - Collaboration Revenue 551 n/m 2 141 (20) 1 Gross margin 81.1% +6 pp 82.9% +8 pp Oper
Slide 11: 2022 guidance (CER)
2022 guidance (CER) Overall business strength, improved COVID-19 medicines outlook Total Revenue • Total Revenue from COVID-19 medicines anticipated to be broadly flat vs. 2021 “a high teens” “low twenties” % increase % increase • Core Operating Expense expected to increase by a mid-to- high teens p
Slide 12: Net debt and capital allocation priorities
Net debt and capital allocation priorities Continued improvement in cash flow from operations Net debt Capital allocation priorities $bn • Strong investment grade credit rating • Reinvestment in the business • Value-enhancing business development 1 • Progressive dividend policy3 Net Debt/EBITDA: 3.5
Slide 13: Oncology
Oncology Dave Fredrickson Oncology Business Susan Galbraith Oncology R&D
Slide 14: Oncology: H1 2022
Oncology: H1 2022 Total Revenue $7.5bn, +22%, increasing product sales and collaboration revenue 4,000 H1 2022: key dynamics 3,500 • Tagrisso, Imfinzi and Lynparza double-digit Product Sales growth; Calquence 3,000 87% growth; Enhertu revenues >2x H1 2021 • Double-digit Product Sales growth across U
Slide 15: Oncology: Q2 2022 R&D highlights
Oncology: Q2 2022 R&D highlights Exceptional data at ASCO, new T-cell engager for haematology Enhertu capivasertib TNB-486 Phase III DESTINY-Breast04 Phase II FAKTION CD19xCD3 T-cell engager TNB-486 anti-CD3_F2B Flic Ab (CD19 x CD3_F2B) anti-CD19 UniAb • Establishes Enhertu as the new standard • In
Slide 16: Oncology: Q2 2022 R&D highlights
Oncology: Q2 2022 R&D highlights Showcasing the next advancement in lung cancer treatment at WCLC 2022 Tagrisso and Orpathys Dato-DXd Key upcoming news flow Phase II SAVANNAH Phase Ib TROPION-Lung02 2023 Tagrisso | EGFRm NSCLC 1L (FLAURA2) Tagrisso | NSCLC unresectable Stg. III (LAURA) Dato-DXd | NS
Slide 17: BioPharmaceuticals
BioPharmaceuticals Ruud Dobber BioPharmaceuticals Business Mene Pangalos BioPharmaceuticals R&D
Slide 18: BioPharmaceuticals: H1 2022
BioPharmaceuticals: H1 2022 Farxiga’s second blockbuster quarter with $1.1bn revenues CVRM R&I V&I $4.6bn, +19% $3.0bn, +3% $2.8bn, >2x 2,500 1,800 2,500 1,600 2,000 1,400 2,000 Total Revenue ($m) 1,200 1,500 1,500 1,000 Total Revenue ($m) Total Revenue ($m) 800 1,000 1,000 600 500 400 500 200 0 0 0
Slide 19: Emerging Markets: H1 2022
Emerging Markets: H1 2022 Total Revenue $6.2bn, +16% including Vaxzevria1 Emerging Markets, +16%2 China, -5%; ex-China EM, +46% 4,000 • Oncology $1.8bn, +12%: Tagrisso +17%, Lynparza +32% 3,500 Q2 2022 | % EM Total Revenues 3,000 Vaxzevria • CVRM $2.1bn, +12% pro forma: Farxiga +50% 7% 2,500 • R&I $
Slide 20: BioPharmaceuticals: Q2 2022 R&D
BioPharmaceuticals: Q2 2022 R&D Positive Phase III trial results for Farxiga, eplontersen Key upcoming news flow H2 2022 Tezspire | severe asthma reg. decision (EU, JP) Farxiga: HFpEF (DELIVER) • Statistically significant and clinically meaningful reduction in CV mortality, nirsevimab | RSV reg. dec
Slide 21: BioPharmaceuticals: Q2 2022 R&D
BioPharmaceuticals: Q2 2022 R&D Nirsevimab shown to be 77.3% effective against hospitalisations1 • Designed and developed to protect all infants through their first RSV season with a single dose • 79.5% effective against medically attended LRTI, including hospitalisations, caused by RSV1 • 77.3% eff
Slide 22: Rare Disease
Rare Disease Marc Dunoyer Chief Executive Officer Alexion
Slide 23: Rare Disease: H1 2022
Rare Disease: H1 2022 Strong initial demand for Ultomiris in gMG from both switch and naïve patients Rare Disease Q2 2022: key dynamics Total Revenue $3.5bn, +10% pro forma1 H1 2022 2,000 • Durable growth C5 franchise (Soliris + Ultomiris), +9%1 1,800 ‒ Soliris, 2%1 slowing growth reflecting success
Slide 24: Rare Disease: R&D highlights
Rare Disease: R&D highlights Remarkable results from CHAMPION-NMO Phase III for Ultomiris in NMOSD Key upcoming news flow 2022 Koselugo | NF1-PN reg. decision (JP) Ultomiris | gMG reg. decision (EU, JP) Ultomiris | NMOSD reg. submission (US, EU, JP) Soliris | GBS (JP) 2023 Soliris | gMG reg. decisio
Slide 25: CEO Closing Remarks
CEO Closing Remarks Pascal Soriot Chief Executive Officer
Slide 26: AstraZeneca Chair Appointment
AstraZeneca Chair Appointment Michel Demaré to succeed Leif Johansson as AstraZeneca Chair effective April 2023 AstraZeneca Non-Executive Board footnote Member since 2019 • Audit Committee Member since 2019 • Renumeration Committee Chair since August 2020 • Chair ad hoc Advisory Committee on Vaxzevr
Slide 27: AstraZeneca: 2025+ Delivering growth through innovation
AstraZeneca: 2025+ Delivering growth through innovation Robust life-cycle Innovative Strategic business Attractive management late-stage pipeline development LoE profile Supports durable, Continued investment in Recent clinical stage US LoE for growing revenue base clinical stage pipeline business d
Slide 28: H1 2022 Question & Answer Session
Pascal Soriot Aradhana Sarin Executive Director and Chief Executive Director and Chief Executive Officer Financial Officer Dave Fredrickson Susan Galbraith Executive Vice President, Executive Vice President, H1 2022 Oncology Business Oncology R&D Question & Ruud Dobber Mene Pangalos Executive Vice P
Slide 29: Appendix
Appendix • ESG & corporate sustainability • Late-stage pipeline: milestones since Q1 2022 • Key performance by geography, disease area
Slide 30: Q2 2022 ESG performance highlights
APPENDIX |ESG & corporate sustainability Q2 2022 ESG performance highlights Access to healthcare Environmental protection Ethics and transparency 6.3m 1st Top 50 lives saved during the first year of Vaxzevria of its kind ground source heat pump – which is companies for Diversity, as recognised by Di
Slide 31: Pipeline catalysts for 2022 - 2023
APPENDIX | Pipeline Milestones since Q1 2022 Pipeline catalysts for 2022 - 2023 Oncology BioPharmaceuticals Rare Disease H2 2022 H1 2023 H2 2023 Tagrisso – NSCLC (adjuvant) (ADAURA) (JP) Lynparza – ovarian cancer (1L) (PAOLA-1) (CN) Soliris – gMG (CN) Imfinzi – biliary tract cancer (TOPAZ-1) Koselug
Slide 32: Q2 2022 Total Revenue performance
APPENDIX | H1 2022 Performance Overview Q2 2022 Total Revenue performance Strength and resilience from diverse portfolio and broad revenue base across geographies Growth across disease areas Growth across geographies Total Revenue ($m) Total Revenue ($m) Q2 2022 | % Disease Area Q2 2022 | % Geograph
Slide 33: Oncology: Tagrisso and Imfinzi
APPENDIX | H1 2022 Product Performance Oncology Tagrisso Imfinzi 14% growth to $2,704m 16% growth to $1,294m 1,600 800 1,400 700 1,200 600 Total Revenue ($m) Total Revenue ($m) 1,000 500 800 400 600 300 400 200 200 100 0 0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2021 2022 2021 2022 EM
Slide 34: Oncology: Lynparza
APPENDIX | H1 2022 Product Performance Oncology Lynparza Lynparza 18% growth to $1,291m (excludes Collaboration Revenue) Collaboration Revenue: $3.6bn recorded, $4.0bn future potential 800 1,000 700 600 800 Update with Cumulative milestones received and remaining Product Sales ($m) 500 Collaboration
Slide 35: Oncology: Calquence and Enhertu
APPENDIX | H1 2022 Product Performance Oncology Calquence Enhertu 87% growth to $903m >2x growth to $204m 600 140 500 120 100 Total Revenue ($m) Total Revenue ($m) 400 80 300 60 200 40 100 20 0 0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2021 2022 2021 2022 EM 1 2 2 2 5 5 8 7 8 EM 0 0 0
Slide 36: BioPharmaceuticals: Cardiovascular, Renal and Metabolism
APPENDIX | H1 2022 Product Performance BioPharmaceuticals: Cardiovascular, Renal and Metabolism Farxiga Brilinta Lokelma 63% growth to $2,103m 7% decline to $675m 87% growth to $129m 1,200 500 70 450 60 1,000 400 350 50 800 Total Revenue ($m) Total Revenue ($m) Total Revenue ($m) 300 40 600 250 30 2
Slide 37: BioPharmaceuticals: Respiratory & Immunology
APPENDIX | H1 2022 Product Performance BioPharmaceuticals: Respiratory & Immunology Symbicort Fasenra 3% decline to $1,288m 18% growth to $662m 800 400 700 350 600 300 Total Revenue ($m) Total Revenue ($m) 500 250 400 200 300 150 200 100 100 50 0 0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Slide 38: BioPharmaceuticals: Respiratory & Immunology
APPENDIX | H1 2022 Product Performance BioPharmaceuticals: Respiratory & Immunology Breztri Pulmicort >2x growth to $179m 32% decline to $334m 100 400 90 350 80 300 70 Total Revenue ($m) Total Revenue ($m) 60 250 50 200 40 150 30 100 20 10 50 0 0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Slide 39: Rare Disease
APPENDIX | H1 2022 Product Performance Rare Disease Soliris Ultomiris Strensiq 1% growth at $2,017m 28% growth to $853m 13% growth to $450m 1,200 500 300 450 1,000 250 400 350 800 200 Total Revenue ($m) Total Revenue ($m) Total Revenue ($m) 300 600 250 150 200 400 100 150 100 200 50 50 0 0 0 Q2 Q3 Q
Slide 40: Use of AstraZeneca slides from conference calls and webcasts
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