Astrazeneca Plc · LSE:AZN
Astrazeneca — H1 2001 Earnings Presentation
23 slides from Astrazeneca's earnings presentation, 2001
Slide 1: Half Year Results 2001
Half Year Results 2001 Dr Tom McKillop Chief Executive Officer
Slide 2: Business performance summary
Business performance summary b On track to deliver 2001 targets a Page 3 Half Year Results summary Continuing (excl. Agrochemicals) Half Year Constant 2001 Currency $m % Sales 8,090 +8 Operating Profit 2,051 +4 EPS $0.87 +7 a Page 4
Slide 3: Business performance summary; Sales by Therapeutic Area
Business performance summary b On track to deliver 2001 targets b Major filings in 1H 2001: ✦ Faslodex™ ✦ Casodex® Early Prostate Cancer ✦ Crestor™ b Good progress with new product launches a Page 5 Sales by Therapeutic Area 1H 2001 % CER $m growth GI 3,014 +4 Cardiovascular 1,835 +8 Respiratory 794
Slide 4: Market share of PPIs; Nexium Europe
Losec® sales maintained 120% 100% Losec® and Nexium® 87% 80% Losec® 83% 60% Zantac® 56% 40% 20% Expiry +1 +2 +3 +4 +5 +6 +7 +8 Source: IMS Health, sales where Losec® substance patent expired 1999, quarterly MAT; Countries included: Australia, Canada, Denmark, Germany, Hong Kong, Malaysia, Norway, So
Slide 5: Total PPI franchise market share US; Nexium TRx USA
Total PPI franchise market share US 50% 48% 46% NRx market share 44% 42% Prilosec® and Nexium® 40% 38% Prilosec® 36% 34% 05/01/2001 02/02/2001 02/03/2001 06/04/2001 01/06/2001 06/07/2001 13/07/2001 04/05/2001 Source: IMS NPA+7 weekly, unadjusted a Page 9 Nexium® TRx - USA 90 80 Nexium® 70 60 TRx 000
Slide 6: Nexium NRx share USA; US launch highlights
Nexium® NRx share - USA 12% Nexium® 10% 8% Weekly NRx share 6% 4% 2% 0% 09/03/2001 16/03/2001 23/03/2001 30/03/2001 06/04/2001 13/04/2001 20/04/2001 27/04/2001 04/05/2001 11/05/2001 18/05/2001 25/05/2001 01/06/2001 08/06/2001 15/06/2001 22/06/2001 29/06/2001 06/07/2001 13/07/2001 Source: IMS NPA+7 w
Slide 7: Cardiovascular
™ Cardiovascular b Atacand® ✦ sales up 67% ✦ major trials continue to build brand (SCOPE, CHARM & DIRECT) b Seloken® / Toprol-XL® ✦ US CHF indication launched ✦ US Rx growth 30% b Zestril® ✦ US Rx growth 6% a Page 14
Slide 8: Exanta
Introducing ….. The future of oral anticoagulation Exanta™ b Ongoing phase III programme: ✦ EXPRESS (EU) & EXULT (US) – prevention of VTE ✦ SPORTIF – prevention of stroke in AF ✦ THRIVE – treatment of VTE b >8,000 patients have received Exanta™ b Initial filings: ✦ Prevention of VTE – MAA 3Q 2002/ND
Slide 9: Respiratory - sales by key product; Symbicort
Respiratory - sales by key product 1H 2001 % CER $m growth Pulmicort® 409 +23 Oxis® 65 +27 Symbicort® 14 - Rhinocort® 130 +18 Accolate® 95 -15 a Page 17 Symbicort® b Analyst forecasts for Seretide®/Advair® sales >$2.5bn (2005) b Symbicort® – highly differentiated ✦ fast onset of action ✦ tailored ma
Slide 10: Symbicort launch uptake in Sweden and Germany
Symbicort® launch uptake in Sweden 100% 80% Seretide® 60% 40% Symbicort® 20% Nov-00 Jan-01 Jan-00 Jun-00 Jun-01 Mar-00 Feb-00 Feb-01 Jul-00 Apr-00 Mar-01 Sep-00 Apr-01 Aug-00 Dec-00 May-00 May-01 Oct-00 Source: AstraZeneca Sweden using PharmX Express, based on R3F1 inhaled B2 agonist + corticosteroi
Slide 11: Symbicort; Arimidex
Symbicort® b Analyst forecasts for Seretide® / Advair® sales >$2.5bn (2005) b Symbicort® – highly differentiated ✦ fast onset of action ✦ tailored maintenance therapy - single inhaler ✦ ongoing studies aimed at removing the need for reliever medication b Launch across most EU markets 2001 b Symbicor
Slide 12: Casodex; Casodex in Early Prostate Cancer
Casodex® Global sales of anti-androgen market Sales $m B Sales up 18% 500 B Monotherapy 400 Casodex® approved in >30 countries 300 B EPC indication 200 flutamide filed in EU – US 100 filing expected cyproterone nilutamide 4Q 2001 0 chlormadinone Q4 97 Q2 98 Q2 99 Q2 00 Q4 00 Q2 97 Q4 98 Q4 99 Source
Slide 13: Faslodex; Iressa
Faslodex™ Faslodex™ study 0021 North American study B A new class of 1.0 endocrine agents 0.9 Proportion responding 0.8 B NDA submitted on 0.7 0.6 March 28 0.5 0.4 B MAA & JNDA on 0.3 track for 1Q 2002 0.2 submissions 0.1 Faslodex™ Arimidex® 0 6 12 18 24 30 36 Duration of response (months) San Anton
Slide 14: Seroquel; Zomig Rapimelt
Zomig® Rapimelt® - driving market leadership GERMANY SPAIN 500 300 ZOMIG 450 Sumatriptan Numbers of Rx (000's) 250 ZOMIG Numbers of Rx (000'S) 400 Sumatriptan 350 Rizatriptan 200 Rapimelt Launch 300 Rizatriptan 250 Rapimelt Launch 150 200 150 100 Naratriptan Naratriptan 100 Almotriptan 50 50 Almotri
Slide 15: Financial Review
Jon Symonds Chief Financial Officer Financial Review b Sales & profit review b Operating margins b Currency trends b Cash flow b 2001 outlook a Page 30
Slide 16: Financial review; Financial highlights
Financial review 12% 12% 8% 8% 7% 7% 4% Q1 Q2 2% H1 Sales Group EPS -4% Operating profit a Page 31 Financial highlights PPI franchise Growth %CER US 0 RoW +12 Total +4 US wholesaler inventories b Prilosec® – slightly above normal b Nexium® – reorder rate growing at end of quarter a Page 32
Slide 17: Margin trends; Currency: 2001 impact
Margin trends 28 27 26 25.2% 25 2000 24 2001 23 22 21 20 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr a Page 33 Currency: 2001 impact b US dollar remains strong against all major currencies b Compared to H1 2001 vs H1 2000 at booking rates ✦ Euro -9% ✦ Sterling -9% ✦ Krona -14% ✦ Yen -11% b Impact consistent wit
Slide 18: Currency impact; Cash flow
Currency impact Sales Operating profit EPS Q2 1H -3% -3% -4% -4% -5% -5% a Page 35 Cash flow 2.2 -0.6 -0.2 Capex -0.5 Exceptionals -1.1 Tax Dividend -0.2 Operating cash flow share buyback Net cash flow a Page 36
Slide 19: 2001 outlook
2001 outlook b Targets ✦ assumes generic Prilosec® from Oct 2001 ✦ mid single digits sales growth (CER) ✦ EPS growth slightly ahead of sales growth (CER) b Consensus EPS forecasts ✦ range $1.66 - $1.76 ✦ average $1.73 a Page 37 Dr Tom McKillop Chief Executive Officer
Slide 20: Crestor; Crestor - the decision
Crestor™ b MAA / NDA submitted June 2001 – JNDA on track for Dec 2001 b Guideline changes enhancing market opportunity (>$20bn) b Product profile is a winner a Page 39 Crestor™ - the decision b Partnership proposals have been considered b Our base case is built on confidence: ✦ in the product profil
Slide 21: Effecting the transformation
Effecting the transformation b Full resources will be made available for Crestor™ ✦ sales forces largely in place ✦ incremental A&P, Phase IV costs b Focus on efficiency and effectiveness ✦ tough portfolio prioritisation for other products ✦ control of infrastructure and G+A costs b 2002 targets com
Slide 22: Appendices: Operating margins half year
Appendices Operating margins: half year 01 1H00 1H01 Key points Margin 26.0 25.4 -0.6 COGS -0.5* Distribution +0.8* +0.3 b Small favourable mix effect R&D -1.2 b More even phasing of R&D in 2001 S,G & A -1.4 b Increased field force/launch spend Other +1.7* b Product disposals in Q1 * Accounting chan
Slide 23: Operating margins: Q2
Operating margins: Q2 01 2Q00 2Q01 Key points Margin 26.9 24.3 -2.6 COGS -1.6* Distribution +0.8* -0.8 b Adverse mix effect R&D -0.9 b More even phasing of R&D in 2001 S,G & A -1.0 b Increased field force/launch spend Other +0.1* b Small increase in other income * Accounting change between COGS and