Astrazeneca Plc · LSE:AZN
Astrazeneca — H1 2021 Earnings Presentation
40 slides from Astrazeneca's earnings presentation, Dec 8, 2021
Slide 1: H1 2021 results: Roadshow and conferences
H1 2021 results Roadshow and conferences
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: Agenda
Agenda Overview Oncology BioPharmaceuticals, Emerging markets Finance Pipeline update, news flow Summary and appendix 3
Slide 4: H1 2021: growth profile enhanced
H1 2021: growth profile enhanced Key highlights Total revenue +18%, incl. 9% from the pandemic COVID-191 vaccine. Total revenue excl. vaccine +9% Q2 growth 12% excl. vaccine Growth: Oncology +15% and New CVRM2 +16%. Respiratory & Immunology +6%. Emerging markets +21% Core operating profit +20%, supp
Slide 5: Late-stage pipeline fuelling growth
Late-stage pipeline fuelling growth Milestones since the Q1’21 results update Medicine Indication (geography) Regulatory approval or Tagrisso adjuvant NSCLC1 (EGFRm2): approval (EU) other regulatory action Imfinzi ES-SCLC3: approval (CN) Lynparza prostate cancer (2nd line4) (BRCAm5): approval (CN) K
Slide 6: H1 2021: total revenue +18%
H1 2021: total revenue +18% Vaccine contributed 9% of growth Total revenue excl. pandemic COVID-19 vaccine New medicines the up by 9% in H1 2021 and by 12% in Q2 2021 major contributor $m +$1.7bn 550 450 incremental revenue of the new medicines compared to H1 20201 350 Total revenue growth, per cent
Slide 7: Oncology and New CVRM drove growth
H1 2021: growth profile enhanced Oncology and New CVRM drove growth Growth across Growth across disease areas geographies H1 ‘21 growth ratio Q2 ‘21 growth ratio H1 ‘21 growth ratio Q2 ‘21 growth ratio $m % % $m % % $m % % $m % % Oncology 6,360 15 41 3,337 14 41 EM1 5,459 21 35 2,868 32 35 New CVRM
Slide 8: Alexion acquisition closed
Alexion acquisition closed Integration and synergies next Acquisition closed on 21 July 2021 Alexion delisted and the AstraZeneca share base expanded Strong strategic rationale - accelerate expansion into immunology and rare diseases - further-sustained, industry-leading double-digit revenue growth
Slide 9: Agenda
Agenda Overview Oncology BioPharmaceuticals, Emerging markets Finance Pipeline update, news flow Summary and appendix 9
Slide 10: Tagrisso and Imfinzi
Tagrisso and Imfinzi Growth improved across the lung cancer franchise Tagrisso: 17% growth to $2.5bn Imfinzi: 18% growth to $1.2bn $m Approvals 57 (adjuvant), 91 (1L), 91 (2L)1 $m Approvals 734 (NSCLC5), 574 (ES-SCLC6) 1,400 • US +18% (35% of total) 700 • US +4% (51% of total) Diagnoses started to r
Slide 11: Lynparza
Lynparza The globally-leading PARP1 inhibitor $m 34% growth in Approvals 84 (ovarian), 82 (breast), 63 Collaboration $m sales to $1.1bn (pancreatic) and 60 (prostate cancer) revenue 700 1,000 • US +29% (46% of total) 600 Growth primarily driven 800 500 by use in prostate cancer 400 • Europe +38% 600
Slide 12: Calquence and Enhertu
Calquence and Enhertu Launches continued ahead Calquence: 150% growth to $0.5bn Enhertu $m Approvals: 66 (CLL1) and 32 countries (MCL2)3 $m Approvals: US, EU, JP (mBC6); US, JP (mGC7) 350 • Global $490m; US $445m • Global $89m; US $75m $161m total US in-market 300 • US CLL sales by Daiichi Sankyo 25
Slide 13: BioPharmaceuticals: commercial and pre-launch headlines
BioPharmaceuticals: commercial and pre-launch headlines Key priorities from March 2021 capital markets event being delivered CVRM Respiratory & Immunology Delivery of Farxiga lifecycle opportunities Positive pre-launch milestones 63% • Fasenra 60% asthma - MELTEMI Phase III trial presented nasal pol
Slide 14: BioPharmaceuticals: New CVRM
BioPharmaceuticals: New CVRM 16% growth driven by Farxiga and Renal New CVRM Farxiga $m 16% growth $m 53% growth - the fastest-growing SGLT2i globally 1,500 750 • US +27% Strong market share growth boosted 1,250 by HFrEF1 indication and CKD launch 1,000 500 • Europe +51% 750 Strong volume growth boo
Slide 15: BioPharmaceuticals: Respiratory & Immunology
BioPharmaceuticals: Respiratory & Immunology 6% growth with improved year-on-year performance in Q2 Respiratory Improved performance with new $m 6% growth medicines offsetting mature ones 1,750 • US +17% • EM +10% Symbicort (-5%); H1 2020 inventory Pulmicort ($405m, +2%); increased 1,500 and COVID-1
Slide 16: BioPharmaceuticals: new launch medicines
BioPharmaceuticals: new launch medicines Portfolio of new medicines across uses and markets Fasenra Breztri Lokelma roxadustat Severe asthma COPD2 $m Hyperkalaemia $m Anaemia in CKD • Leading new biologic in five • US $43m • Global $72m; US $49m • EM $92m of top-seven countries1 Achieved >20% share
Slide 17: Emerging markets
Emerging markets Diverse and solid growth Emerging markets +21% Performance driven by new medicines $m EM excl. China +36%; China +11% up 29% (35% of total revenue; $1.8bn1) 3,000 • Oncology +6%: Tagrisso (+10%); March 2021 NRDL inclusion 2,500 New CVRM +28%: Forxiga (+77%); roxadustat ($92m) 2,000
Slide 18: Rare diseases: a new disease area in AstraZeneca
Rare diseases: a new disease area in AstraZeneca Consolidation and financial reporting to start from closing Alexion pre-acquisition stand- Future financial reporting alone H1 and Q2 2021 revenue • Alexion consolidated upon deal H1 2021 Q2 2021 closing on 21 July 2021 Total revenue $3,337m | +15% $1
Slide 19: Agenda
Agenda Overview Oncology BioPharmaceuticals, Emerging markets Finance Pipeline update, news flow Summary and appendix 19
Slide 20: Reported profit and loss
Reported profit and loss H1 2021 change % total Q2 2021 change % total $m % revenue $m % revenue Total revenue 15,540 18 100 8,220 25 100 - product sales 15,302 19 98 8,045 27 98 - collaboration revenue 238 (12) 2 175 (23) 2 Gross margin 73.5% (6.1) pp4 72.8% (9.6) pp Operating expenses1 9,771 12 63
Slide 21: Core profit and loss
Core profit and loss H1 2021 change % total Q2 2021 change % total $m % revenue $m % revenue Total revenue 15,540 18 100 8,220 25 100 - product sales 15,302 19 98 8,045 27 98 - collaboration revenue 238 (12) 2 175 (23) 2 Gross margin 73.8% (6.4) pp 73.0% (9.9) pp Operating expenses 8,511 12 55 4,375
Slide 22: Analysis: core operating profit and net debt
Analysis: core operating profit and net debt Continued improvement in the operating profit mix Core operating profit mix improved Net debt reduced from improved $m Residual from product sales increased $bn EBITDA1, working capital reductions 2,750 2,500 0.2 2,250 2.5 4.6 0.6 2,000 0.5 0.9 1.3 12.1 1
Slide 23: Financial priorities
Financial priorities H1 2021 results underpinned the strategic journey Deleveraging/dividend growth Revenue growth • As cash flow improves, deleveraging and progressive dividend policy +9% growth in total revenue in • Unchanged priorities for capital H1 2021 excl. the pan- allocation demic COVID-19
Slide 24: 2021 guidance updated
2021 guidance updated Alexion is now included Total revenue Core EPS increase by a low- faster growth to twenties percentage $5.05 to $5.40 Based on 1,418 million weighted average number of shares in issue during 2021 The guidance does not incorporate any revenue or profit impact from sales of the p
Slide 25: Agenda
Agenda Overview Oncology BioPharmaceuticals, Emerging markets Finance Pipeline update, news flow Summary and appendix 25
Slide 26: Continuing response to COVID-19
Continuing response to COVID-19 Vaxzevria and AZD2816 Vaxzevria Global equitable supply AZD2816 (pandemic COVID-19 vaccine) (new variant vaccine) 92% >700m doses • Phase II/III trial launched effectiveness against hospitalisation released for global supply by the and death from the delta variant1 ex
Slide 27: CVRM: Farxiga a new standard of care
CVRM: Farxiga a new standard of care From a start in diabetes now to HF and CKD DAPA-HF Phase III trial DAPA-CKD Phase III trial Milestones and news flow • HFrEF: 26% risk reduction in • First SGLT2i with benefit in • CKD: approval (US); positive primary endpoint patients with and without T2D2 opini
Slide 28: Respiratory & Immunology: Saphnelo (anifrolumab)
Respiratory & Immunology: Saphnelo (anifrolumab) First-in-class biologic medicine in lupus now FDA approved Compelling data in resolution Large unmet Milestones and news flow of skin rash and arthritis medical need • Post-hoc analysis of TULIP • c.5m lupus patients globally1 • US5, EU, JP regulatory
Slide 29: BioPharmaceuticals: 'What's next'
BioPharmaceuticals: ‘What’s next’ Expanding pipeline, including immunology What’s next What’s now Phase I/II new medicines, selected Phase III new medicines MEDI3506 MEDI3506 roxadustat PT027 (IL331 mAb2) (IL33 mAb) anaemia in CKD asthma DKD3 COPD, asthma AD11, COVID-19 cotadutide AZD1402 Phase II P
Slide 30: Oncology: 2021 ASCO Annual Meeting
Oncology: 2021 ASCO Annual Meeting Further solid progress in redefining cancer care 2021 ASCO Annual Meeting: another strong Lynparza demonstrated a sustainable and clinically presence - 90 abstracts and 74 presentations1 meaningful treatment effect compared to placebo2 • One plenary session (Lynpar
Slide 31: Koselugo and Orpathys
Koselugo and Orpathys ‘Rare’ opportunities to make a significant difference in the lives of patients Koselugo approved in the EU for children with neuro- Orpathys approved in China for fibromatosis type 1 and plexiform neurofibromas (PN) NSCLC with MET gene alterations 66% Radiographic example of a
Slide 32: Oncology: 'What's next'
Oncology: ‘What’s next’ Solid pipeline moving forward What’s next What’s now Phase III new medicines New Phase I/II new medicines, selected datopotamab deruxtecan lung cancer camizestrant breast cancer Phase III ✓ monalizumab capivasertib head & neck cancer breast, prostate cancer adavosertib cerala
Slide 33: Late-stage pipeline events over the next 18 months
Late-stage pipeline events over the next 18 months News flow picks up; Phase III readouts increase into H2’21 H2 2021 H1 2022 H2 2022 - Regulatory Forxiga - CKD (EU, JP) Brilique - stroke (THALES) (EU, CN) roxadustat - anaemia in CKD (US) Forxiga - CKD (CN) decision anifrolumab - lupus (SLE) (EU, JP
Slide 34: Agenda
Agenda Overview Oncology BioPharmaceuticals, Emerging markets Finance Pipeline update, news flow Summary and appendix 34
Slide 35: AstraZeneca in summary
AstraZeneca in summary Pipeline-driven transformation Global presence Strong pipeline Improving financials Balanced specialty and 22 Phase III medicines and Ten blockbuster medicines2,3 primary-care franchises1 significant lifecycle projects2 Returned to durable Leading emerging markets Advancing ea
Slide 36: Appendix: 'What's next'
Appendix: ‘What’s next’ Next key milestone by project Oncology BioPharmaceuticals: CVRM Project Target Phase Indication Next milestone Project Target Phase Indication Next milestone GLP-1/ NASH Phase II data H2 2021 adavosertib WEE1 II uterine, ovarian cancer Phase III start cotadutide II glucagon D
Slide 37: Appendix: Rare Diseases - a new growth area for AstraZeneca
Appendix: Rare Diseases - a new growth area for AstraZeneca Recent and upcoming pipeline developments Ultomiris gMG1 ALXN1840 (2nd-generation, long-acting C5 inhibitor) Wilson Disease Addressable gMG market • Positive Phase III read-out July • Phase III read-out anticipated H2 2021; full data to be
Slide 38: Appendix: Rare Diseases - 'What's next'
Appendix: Rare Diseases - ‘What’s next’ Pipeline progress continued What’s next What’s now Phase III new medicines Phase I/II new medicines, selected ALXN1840 Wilson disease CAEL-101 AL-amyloidosis AG10 ALXN2040 ATTR3 PNH w/EVH4 ALXN1720 ALXN1830 (3rd-generation C5 inhibitor) (anti-FcRn) gMG gMG, WA
Slide 39: Investor Relations Team
Investor Relations Team Cambridge, UK AZN IR Team and Boston, US members Thomas Kudsk Larsen +44 203 749 5712 Nick Stone Oncology +44 203 749 5716 Kevin O’Neil Rare Diseases +1 857 338 8505 BioPharmaceuticals Christer Gruvris (Cardiovascular, Renal & +44 203 749 5711 Metabolism), Finance BioPharmace
Slide 40: Use of AstraZeneca conference call, webcast and presentation slides
Use of AstraZeneca conference call, webcast and presentation slides 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 availabl