Slide 1: Year-to-date and Q3 2020 results
Year-to-date and Q3 2020 results Conference call and webcast for investors and analysts 5 November 2020
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: Speakers
Speakers Pascal Soriot Pam Cheng Dave Fredrickson Ruud Dobber Executive Vice President, Executive Director and Executive Vice President, Executive Vice President, BioPharmaceuticals Chief Executive Officer Operations & IT (for Q&A) Oncology Business Unit Business Unit Marc Dunoyer Leon Wang José Bas
Slide 4: Agenda
Agenda Overview Oncology BioPharmaceuticals, Emerging markets Finance Pipeline update, news flow Closing and Q&A 4
Slide 5: YTD 2020: strong, resilient performance despite COVID-19
YTD 2020: strong, resilient performance despite COVID-19 Key highlights Total revenue up by 10% despite some impact from COVID-191 Strong revenue performance: new medicines (+36%)2; Oncology (+24%), New CVRM3 (+10%) and Respiratory & Immunology (+1%). Emerging markets (+11%), despite large Pulmicort
Slide 6: Late-stage pipeline continued strongly
Late-stage pipeline continued strongly Major news items since H1 2020 results update Medicine Indication (geography) Regulatory Imfinzi ES-SCLC1 (EU, JP) approvals Lynparza ovarian cancer (1L2, HRD+3) (PAOLA-1) (EU) prostate cancer (2L4, BRCAm5) (EU) Enhertu gastric cancer (3L6, HER2+7) (JP) Forxiga
Slide 7: YTD 2020: total revenue +10%
YTD 2020: total revenue +10% New medicines continued to grow well Revenue growth impacted by Lynparza New medicines the milestones; now anticipated in Q4 2020 major contributor $m 1,000 22% 14% 18% 17% +$2.6bn 900 800 +7% incremental revenue of the new Total revenue growth, per cent 11% 11% 700 medi
Slide 8: YTD 2020: diversified growth continued
YTD 2020: diversified growth continued China Pulmicort COVID-19 impact reduced growth Growth across Growth across therapy areas geographies Q3 2020 change ratio YTD ‘20 change ratio Q3 2020 change ratio YTD ‘20 change ratio $m % % $m % % $m % % $m % % Total revenue 6,578 3 100 19,207 10 100 Total re
Slide 9: Agenda
Agenda Overview Oncology BioPharmaceuticals, Emerging markets Finance Pipeline update, news flow Closing and Q&A 9
Slide 10: Tagrisso and Imfinzi
Tagrisso and Imfinzi Global growth underpinned by uptake in Europe, Emerging Markets Tagrisso: 39% growth Imfinzi: 43% growth $m Approvals 87 (1L) and 89 (2L)1 $m Approvals 654 (NSCLC5), 474 (ES-SCLC) 1,200 • US +26% (36% of total) 600 • US +17% (60% of total) Growth despite NSCLC matured; SCLC drov
Slide 11: Lynparza
Lynparza The globally-leading PARP1 inhibitor $m Lynparza Approvals 77 (ovarian), 71 (breast), 51 Lynparza $m 53% sales growth (pancreatic) and 13 (prostate cancer) collaboration revenue 600 1,000 • US +46% (49% of total) 500 1st-line OC2 drove sales with 800 emerging prostate cancer use 400 • Europ
Slide 12: Calquence and Enhertu
Calquence and Enhertu Calquence accelerated; Enhertu launch continued Calquence Enhertu $m Approvals: 17 (CLL1) and 20 countries (MCL2) $m Approvals: US, JP (mBC4 HER2+ 3L); JP (mGC5 HER2+ 3L) 150 • Global $340m; US $335m 30 • Global $63m; US $62m $136m in-market sales by 125 Daiichi Sankyo; most- •
Slide 13: BioPharmaceuticals: New CVRM
BioPharmaceuticals: New CVRM Farxiga’s growth supported by heart failure Diabetes/HF: 7% growth driven by Farxiga, now the Brilinta: growth $m fastest-growing SGLT21 in the fastest-growing T2D class2 $m impacted by COVID-19 1,000 • Farxiga +26% • Brilinta +9%: slower growth in all regions; China VBP
Slide 14: BioPharmaceuticals: Respiratory & Immunology
BioPharmaceuticals: Respiratory & Immunology Pulmicort hit by COVID-19; other Respiratory in solid growth Respiratory Encouraging growth everywhere $m 1% growth except EMs; Pulmicort impact in China 2,000 • US +20% • EMs -23% Symbicort (+29%); sustained volume Pulmicort ($479m, -42%) hit by lower pe
Slide 15: BioPharmaceuticals: new launch medicines
BioPharmaceuticals: new launch medicines Portfolio of new medicines across uses and markets Fasenra Breztri Lokelma roxadustat Severe asthma COPD $m Hyperkalaemia $m Anaemia in CKD • Europe $140m (+74%); • EMs $14m • Global $48m; US $37m • EMs $19m Japan $72m (+15%) Ongoing launch in China US market
Slide 16: BioPharmaceuticals: Fasenra
BioPharmaceuticals: Fasenra Patient-level IL5 market share in severe, uncontrolled asthma New patient share Total patient share Severe Asthma (IL5 segment) Latest quarter rolling market share - 2020 50% 43% 36% 53% 63% 56% 50% 57% 64% 47% 37% 44% 34% 37% 43% 41% 43% 48% 2019 2020 2019 2020 2019 2020
Slide 17: Emerging markets
Emerging markets Diverse and solid growth Emerging markets +11% Performance driven by new medicines +68% $m Ex-China EMs +10%; China +11%1 (34% of total revenue; $0.9bn2 incrementally) 2,500 • Oncology +40%: Tagrisso ($950m) 2,000 New CVRM +35%: Forxiga (+54%); Brilinta (+18%) Respiratory & Immunolo
Slide 18: Agenda
Agenda Overview Oncology BioPharmaceuticals, Emerging markets Finance Pipeline update, news flow Closing and Q&A 18
Slide 19: Reported profit and loss
Reported profit and loss YTD 2020 change % total Q3 2020 change % total $m % revenue $m % revenue Total revenue 19,207 10 100 6,578 3 100 - product sales 18,879 11 98 6,520 7 99 - collaboration revenue 328 (18) 2 58 (78) 1 Gross margin 80.0% 0.3 pp4 79.0% 1.4 pp Operating expenses1 12,646 (1) 66 4,3
Slide 20: Core profit and loss
Core profit and loss YTD 2020 change % total Q3 2020 change % total $m % revenue $m % revenue Total revenue 19,207 10 100 6,578 3 100 - product sales 18,879 11 98 6,520 7 99 - collaboration revenue 328 (18) 2 58 (78) 1 Gross margin 80.5% (0.3) pp 79.4% 0.4 pp Operating expenses 10,979 5 57 3,723 3 5
Slide 21: Analysis: core operating profit and net debt
Analysis: core operating profit and net debt Increasing operating leverage and cash flow progress Core operating profit Net debt increased $1.9bn from end 2019 but remained $m Sources of profit continued to progress $bnstable from end June at $13.8bn despite interim dividend 2,250 2,000 0.2 3.6 1,75
Slide 22: Financial priorities
Financial priorities YTD 2020 results underpinned the strategic journey Deleveraging/dividend growth Revenue growth • As cash flow improves, deleveraging and progressive dividend policy +10% • Unchanged priorities for capital growth in total allocation revenue in YTD 2020 Operating leverage • 57% ra
Slide 23: 2020 guidance unchanged
2020 guidance unchanged Total revenue Core EPS Increase by a high single-digit to Increase by a mid- to a low double-digit percentage high-teens percentage Guidance is at CER. AstraZeneca recognises the heightened risks and uncertainties from the impact of COVID-19 as referenced in the results annou
Slide 24: Agenda
Agenda Overview Oncology BioPharmaceuticals, Emerging markets Finance Pipeline update, news flow Closing and Q&A 24
Slide 25: Continuing response to COVID-19
Continuing response to COVID-19 Advancing vaccine, antibody, other options AZD1222 vaccine AZD7442 long-acting Other COVID ChAdOx1 nCoV-19 antibody (LAAB) combo efforts underway • UK, South Africa, Brazil and • Phase III trials starting with • Calquence US dosing resumed first data early in H1 2021
Slide 26: BioPharmaceuticals: CVRM
BioPharmaceuticals: CVRM Farxiga, Lokelma and roxadustat in CKD help balance CVRM into specialty care Farxiga: roxadustat: unprecedented data in CKD key data from ASN 2020 • Prolonged survival Hazard ratio, 0.61 (95% CI, 0.51–0.72) • MACE2, MACE+3, and CV component in a CKD outcomes p=0.000000028 ev
Slide 27: BioPharmaceuticals: Respiratory & Immunology
BioPharmaceuticals: Respiratory & Immunology From legacy in asthma and COPD, immunology gathers pace Breztri/Trixeo: Late-stage immunology mortality data in COPD pipeline advancing at pace • ETHOS Phase III data published • Fasenra • anifrolumab Various immune-driven Consistent efficacy in diseases
Slide 28: 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 cotadutide New PII in MEDI3506 roxadustat PT027 (GLP-11/glucagon co-agonist) DKD ✓ (IL338 mAb) anaemia in CKD asthma NASH2, DKD3 asthma, COPD,
Slide 29: Oncology: recent highlights
Oncology: recent highlights Strong ESMO 2020 supports growth Tagrisso: unprecedented CNS1 Lynparza: only PARP inhibitor with Other ESMO highlights benefit in adjuvant NSCLC (EGFRm) overall survival in prostate cancer3 of significant importance • Enhertu Gastric cancer (3L) HER2-low subgroups • Imfin
Slide 30: Oncology: 'What's next'
Oncology: ‘What’s next’ Solid pipeline moving forward What’s next What’s now Phase I/II new medicines, selected Phase III new medicines AZD9833 Phase III datopotamab deruxtecan Phase III Now PIII New PIII ready ✓ ready ✓ monalizumab capivasertib prostate head & neck cancer ✓ (SERD1, oral) (TROP29 AD
Slide 31: Late-stage pipeline events in the 2020-2021 timeframe
Late-stage pipeline events in the 2020-2021 timeframe Busy news flow continues; increase in Phase III readouts into 2021 Q4 2020 H1 2021 H2 2021 Regulatory Imfinzi - new Q4W dosing (US) Tagrisso - adjuvant NSCLC (EGFRm) (US, CN) Imfinzi - ES-SCLC (CN) Lynparza - OC (1L) (PAOLA-1) (JP); breast (BRCAm
Slide 32: Agenda
Agenda Overview Oncology BioPharmaceuticals, Emerging markets Finance Pipeline update, news flow Closing and Q&A 32
Slide 33: AstraZeneca in summary
AstraZeneca in summary Pipeline-driven transformation Global presence Strong pipeline Improving financials Balanced specialty and 17 Phase III medicines and Nine blockbuster medicines primary-care franchises1 significant lifecycle projects Returned to sustainable Leading emerging markets Advancing e
Slide 34: Questions & Answers
“ar ne beat: Questions.” & Answers oe
Slide 35: 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/ AZD9833 SERD I/II breast cancer Phase III start cotadutide II NASH, DKD Phase IIb data H2 2021 glucagon datopot
Slide 36: 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