Astrazeneca Plc · LSE:AZN
Astrazeneca — FY2012 Earnings Presentation
55 slides from Astrazeneca's earnings presentation, 2013
Slide 1: Full Year Results 2012
Full Year Results 2012 NX> eoauazersy
Slide 2: Cautionary statement regarding forward-looking statements
Cautionary statement regarding forward-looking statements In order, among other things, to utilise the 'safe harbour' provisions of the US Private Securities Litigation Reform Act 1995, we are providing the following cautionary statement: This presentation contains certain forward-looking statements
Slide 3: Full Year Results 2012 - Pascal Soriot
Full Year Results 2012 Pascal Soriot, Chief Executive Officer
Slide 4: Agenda
Agenda Pascal Soriot • Opening remarks • Commercial performance Briggs Morrison • Pipeline review Simon Lowth • Financial performance 2012 • 2013 guidance Pascal Soriot • Observations from 1st 90 days • Capital Markets day preview 4
Slide 5: Overview 2012
Overview 2012 Revenue $27,973m -15% (CER) Achieved Core EPS $6.41 -9% (CER) financial target Reported EPS $4.99 -29% (CER) Dividend $2.80 Achieved $600m in CER revenue growth from: Drove - Symbicort - Onglyza Brand performance - Faslodex - Brilinta/Brilique - Iressa - Seroquel XR Europe Forxiga, Zin
Slide 6: Regional revenue performance FY 2012
Regional revenue performance FY 2012 2012 CER CER $m growth $m Global Revenue 27,973 -15% (4,966) Astra Tech/Aptium (-1.7 pts) US 10,655 -21% (2,771) Seroquel IR (2,647) Western Europe 6,486 -19% (1,607) (Seroquel IR, Nexium, Atacand & Merrem generics) Established ROW 5,080 -14% (802) Japan 2,904 -5
Slide 7: Brand revenue performance FY 2012
Brand revenue performance FY 2012 2012 CER CER $m growth $m Global Revenue 27,973 -15% (4,966) Crestor 6,253 -4% (246) Excluding Canada +2% Symbicort 3,194 +5% 157 Seroquel XR 1,509 +4% 64 Faslodex 654 +24% 131 Iressa 611 +12% 69 Onglyza 323 +53% 112 Byetta/Bydureon 111 n/m 111 Brilinta/Brilique 89
Slide 8: Crestor
Crestor 2012 Sales: $6,253m -4% CER $m US EM ROW • FY TRx’s -1.4% 6,000 $664m +4% • Resilient performance post generic atorvastatin 5,000 EST ROW $1,269m -23% 4,000 W. EUR $1,156m +2% 3,000 2,000 US $3,164m +3% 1,000 0 FY 11 FY 12 US W EUR EST ROW EM ROW 8
Slide 9: Crestor US: net dynamic volume trend
Crestor US: net dynamic volume trend 1 CRESTOR Dynamic Volumes Simva Warning Lipitor LOE Multi-Source 35,000 June 10 Nov 30 May 30 30,000 25,000 20,000 15,000 10,000 5,000 0 -5,000 -10,000 -15,000 7-Oct 9-Nov 9-Dec 10-Feb 19-Oct 1-Apr 28-Oct 2-Mar 4-May 18-Nov 30-Dec 6-Jul 7-Sep 30-Nov 21-Dec 3-Jun
Slide 10: Crestor: US TRx trend
Crestor: US TRx trend Resilient performance post multi-source generic atorvastatin Q4 12: -6% 6600 Atorvastatin Simvastatin label change (2H ’11) multi-source 6400 30 May Medicaid volumes (2H ’12) 6200 6000 5800 5600 5400 5200 5000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2011 2012 10
Slide 11: Crestor
Crestor 2012 Sales: $6,253m -4% CER $m US EM ROW 6,000 $664m +4% • FY TRx’s -1.4% EST ROW • Resilient performance post generic atorvastatin 5,000 $1,269m -23% 4,000 W. EUR $1,156m +2% RoW 3,000 • RoW sales $3,089m -9% 2,000 US − Adj for LOE in Canada, FY unchanged $3,164m +3% 1,000 • Crestor #1 stat
Slide 12: Crestor: Japan
Crestor: Japan Increasing share of new patients post generic atorvastatin launch New patients dynamic share (Statin + Caduet market) 35% 30% 25% 20% 15% 10% 5% 0% 11/04 11/06 11/08 11/10 11/12 12/02 12/04 12/06 12/08 12/10 Crestor Lipitor Caduet Atorvastatin GX Livalo SOURCE: IMS Health Japan; Octob
Slide 13: Crestor
Crestor 2012 Sales: $6,253m -4% CER $m US EM ROW 6,000 $664m +4% • FY TRx’s -1.4% EST ROW • Resilient performance post generic atorvastatin 5,000 $1,269m -23% 4,000 W. EUR $1,156m +2% RoW 3,000 • RoW sales $3,089m -9% 2,000 US − Adj for LOE in Canada, FY unchanged $3,164m +3% 1,000 • Crestor #1 stat
Slide 14: Brilinta
Brilinta FY 2012 Sales: $89m +348% CER Now launched in 82 countries $m 100 EM ROW 90 $12m +n/m 80 EST ROW 70 $3m +n/m 60 W. EUR 50 $55m +n/m 40 30 US 20 $19m +73% 10 0 FY 11 FY 12 US W EUR EST ROW EM ROW 14
Slide 15: Brilinta: US Launch progress
Brilinta: US Launch progress Steady increase in TRx’s 5,000 4,500 On formulary in more 4,000 4Q TRx: 49, 287 +46% v Q3 than 60% of Top 400 3,500 hospitals 3,000 TRx Actuals 2,500 Preferred unrestricted 3Q TRx: 33,829 access increased to 2,000 >50% in Commercial & 1,500 Medicare Part D 1,000 managed
Slide 16: Brilique: Germany
Brilique: Germany Target hospitals: On protocol in 86%; 39% share of ACS initiations (#1) OAP Hospital Volume market share OAP Retail Volume market share (Daily Dosage)* (Daily Dosage) * 14% 7% 12.9% 6.1% DDD Volume MS B01C2 [CU] 12% 6% 5.0% 10% 5% 9.6% 8% Prasugrel 4% 6% 3% 4% 2% uptake Oct to Nov:
Slide 17: Brilique: France tracking well vs prasugrel launch
Brilique: France tracking well vs prasugrel launch Target hospitals: On protocol in 76%; 29% share of ACS initiations (#2) OAP Hospital Volume market share OAP Retail Volume market share Hospital Pharmacy Consumption(1) sell-out (2) 0.7% 3% 0.7% Week 3 0.6% Jan ‘13 0.6% 0.6% 2% 1.9% 0.5% %MS (DOT) %
Slide 18: Brilinta
Brilinta FY 2012 Sales: $89m +348% CER Now launched in 82 countries $m 100 US 90 EM ROW • Steady progress in TRx growth $12m +n/m 80 EST ROW • Preferred, unrestricted access in Commercial and 70 $3m +n/m Medicare Part D plans now >50% 60 W. EUR 50 $55m +n/m 40 RoW 30 • Continued good performance in
Slide 19: Onglyza Franchise
Onglyza Franchise FY 2012 Global Alliance Revenue: $323m +53% CER $m US 300 EM ROW • Onglyza franchise TRx volume + 45% $26m +86% 250 EST ROW − DPP4 market growth +22% $13m +86% 200 • Onglyza franchise TRx share 17.8% in W. EUR December 2012, +1.3 pts $47m +38% 150 − Onglyza TRx share stable at 11.8
Slide 20: Onglyza: US TRx share increased in growing DPP4 market
Onglyza: US TRx share increased in growing DPP4 market Onglyza franchise TRx volume + 45%; TRx share +1.3 pts Onglyza franchise TRx volume Onglyza franchise DPP4 Market TRx share TRx growth 300,000 25.0% Onglyza Kombiglyze XR 22.9% 21.6% 250,000 20.0% 17.8% 16.5% 200,000 15.0% KXR KXR 150,000 4.7% 6
Slide 21: Onglyza Franchise
Onglyza Franchise FY 2012 Global Alliance Revenue: $323m +53% CER $m US 300 EM ROW • Onglyza franchise TRx volume + 45% $26m +86% 250 EST ROW − DPP4 market growth +22% $13m +86% • Onglyza franchise TRx share 17.8% in December 200 2012, +1.3 pts W. EUR $47m +38% 150 − Onglyza TRx share stable at 11.8
Slide 22: Symbicort
Symbicort 2012 Sales: $3,194m +5% CER $m US 3,000 EM ROW $435m +3% • US sales reach $1bn milestone for 1st time 2,500 EST ROW $443m +7% 2,000 W. EUR $1,313m -3% 1,500 1,000 500 US $1,003m +19% 0 FY 11 FY 12 US W EUR EST ROW EM ROW 22
Slide 23: Symbicort: US
Symbicort: US Steady increase in TRx and New to Combination (NTC) market share 30% 28% 27.7% 26% 24% 23.5% 22.3% 22% 20% 18% 16% Feb-11 Nov-11 Dec-11 Feb-12 Nov-12 Dec-12 Aug-11 Sep-11 Aug-12 Sep-12 May-11 Jul-11 May-12 Jul-12 Oct-11 Oct-12 Apr-11 Apr-12 Jan-11 Jun-11 Jan-12 Jun-12 Mar-11 Mar-12 NTC
Slide 24: Symbicort
Symbicort 2012 Sales: $3,194m +5% CER $m 3,000 EM ROW US $435m +3% • US sales reach $1bn milestone for 1st time 2,500 EST ROW • Symbicort TRx’s +13% vs +1% for fixed $443m +7% 2,000 combination market W. EUR • December 2012 TRx share: 22.3% (+2 pts) 1,500 $1,313m -3% − New patient share 27.7% 1,000
Slide 25: Nexium
Nexium 2012 Sales: $3,944m, -10% CER $m EM ROW US 4,000 $779m +11% • Steady financial performance in highly generic market 3,500 EST ROW • Volume decline partially offset by higher realised prices 3,000 $476m -11% due to mix effect 2,500 W. EUR 2,000 $417m -41% 1,500 ROW 1,000 • FY sales $1,672m, -1
Slide 26: Nexium Benchmark
Nexium Benchmark Monthly Volume Trend from Launch 5.0 Index: Monthly volume (IMS B-yen) vs. month 12 4.5 BLOPRESS 4.0 NU LOTAN 3.5 LIPITOR 3.0 CRESTOR 2.5 PAXIL 2.0 ADOAIR 1.5 NEXIUM 1.0 JANUVIA+ 0.5 Glactiv 0.0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Month from Launch 26 Sour
Slide 27: Full Year Results 2012
Full Year Results 2012 NX> eoauazersy
Slide 28: Pipeline review 2012
Pipeline review 2012 Briggs Morrison, Executive Vice President Global Medicines Development
Slide 29: Driving strategic priorities
Driving strategic priorities Progress the pipeline and rebuild the phase III portfolio Enhance R&D productivity Scientific Leadership Strengthen our capabilities in translational science and personalised medicine Foster a culture of high quality, innovative science
Slide 30: Pipeline movement since 2011
Pipeline movement since 2011 39 projects advanced or new Phase I Phase II Phase III Reg LCM App/Lch TOTAL 12 discovery projects 29 25 6 5 11 8 84 19 projects discontinued
Slide 31: R&D pipeline – small and large molecule
R&D pipeline – small and large molecule Oncology Legend moxetumomab pasudotox Respiratory & Inflamm. (CD22) haematological malignancies (inc. autoimmune.) MEDI0639 CVGI (DLL-4) solid tumours Neuroscience AZD5363 MEDI3617 Infection (and vaccines) (AKT) solid tumours (Ang2) solid tumours selumetinib A
Slide 32: Pipeline progress in 2012
Pipeline progress in 2012 Programme Indication 2012 achievement Timing Caprelsa medullary thyroid cancer Launch in Europe H1 Symbicort SMART asthma Launch in Japan H1 H1 Nexium low dose aspirin prevention of recurrence of peptic ulcer Launch in Japan H1 Zinforo skin and soft tissue infections and co
Slide 33: Late stage – launch products
Late stage – launch products Acute coronary syndrome BRILINTA • Increased investment in PARTHENON programme • BRILINTA included in 11 sets of global guidelines as part of the standard of care Adults with type 2 diabetes FORXIGA • First in class SGLT2, now launched in UK, Germany and Denmark • DECLAR
Slide 34: Late stage – phase III
Late stage – phase III Opioid induced constipation NALOXEGOL • Top-line results from KODIAC-04 and KODIAC-05, and the KODIAC-07 safety extension trial • On track for regulatory submissions in US, EU, and Canada mid-2013 Serious infections CAZ AVI • Innovative combination of antibotic ceftazidime and
Slide 35: What’s ahead – potential NME phase III starts 2013-14
What’s ahead – potential NME phase III starts 2013-14 2013 2014 benralizumab – AZD6765 – ATM AVI – asthma depression serious infections olaparib – sifalimumab – AZD4547 – solid tumours systemic lupus erythematosus solid tumours moxetumomab pasudotox – mavrilimumab – AZD1722 – hairy cell leukaemia rh
Slide 36: Expected news flow highlights 2013
Expected news flow highlights 2013 Product Milestone Timing fostamatinib – rheumatoid arthritis Phase III data H1 naloxegol – opioid-induced constipation Phase III data (KODIAC-08) H1 H1 moxetumomab pasudotox – hairy cell leukaemia Potential phase III start H1 NME olaparib – solid tumours CXL – meth
Slide 37: Driving strategic priorities
Driving strategic priorities Progress the pipeline and rebuild the phase III portfolio Enhance R&D productivity Scientific Leadership Strengthen our capabilities in translational science and personalised medicine Foster a culture of high quality, innovative science
Slide 38: Full Year Results 2012
Full Year Results 2012 NX> eoauazersy
Slide 39: Full Year Results 2012 - Simon Lowth
Full Year Results 2012 Simon Lowth, Chief Financial Officer
Slide 40: Headline results FY 2012
Headline results FY 2012 2012 2011 Actual CER $m $m growth growth Revenue 27,973 33,591 -17% -15% Core Operating Profit 10,430 13,167 -21% -18% Core EPS $6.41 $7.28 -12% -9% Restructuring ($0.94) ($0.63) MedImmune/Merck amortisation ($0.40) ($0.32) Intangible impairments - ($0.01) Legal provisions &
Slide 41: Headline results Q4 2012
Headline results Q4 2012 2012 2011 Actual CER $m $m growth growth Revenue 7,282 8,656 -16% -15% Core Operating Profit 2,532 2,990 -15% -13% Core EPS $1.56 $1.61 -3% +1% Restructuring ($0.23) ($0.36) MedImmune/Merck amortisation ($0.11) ($0.08) Intangible impairments - - Legal provisions & other - ($
Slide 42: Core margin: FY 2012
Core margin: FY 2012 CER Delta vs $m growth % sales PY CER Revenue 27,973 -15% Core Gross Margin 22,716 -16% 81.2 -90bps Distribution (320) -5% 1.2 -20bps Core SG&A (8,541) -12% 30.5 -90bps Core Other Income 1,027 +24% 3.7 +110bps Core Pre-R&D Profit 14,882 -16% 53.2 -90bps Core R&D (4,452) -11% 15.
Slide 43: Restructuring Programme: Phase 3 2012-2014
Restructuring Programme: Phase 3 2012-2014 Headcount Programme Progress to date Impact Cost 2012-2014 2012-2014 Costs Headcount $m $m Global Supply Chain 1,350 (500) (136) ~750 SG&A 3,750 (800) (631) ~3,250 R&D 2,200 (800) (791) ~2,260 Total ~ 7,300 (2,100)† (1,558)* ~ 6,300 Estimated annual $1,600m
Slide 44: Net headcount developments: 2006-2012
Net headcount developments: 2006-2012 Global SG&A R&D Other R&D Emerging Other Supply Chain Business Reinvestment† Markets Reinvestment 0 (5,000) -15,100 Net Wave 1 & 2 20,500 (10,000) Wave 3 ~6,300 (15,000) (20,000) (25,000) (30,000) Headcount Dec 31st 2006 (66,800) Headcount Dec 31st 2012 (51,700)
Slide 45: Cash generation: FY 2012
Cash generation: FY 2012 2012 2011 $m $m Opening net funds 2,849 3,653 EBITDA 10,666 15,345 Movement in working capital (706) (897) Tax & interest paid (2,588) (4,547) Other non-cash movements (424) (597) Profit on disposal of Astra Tech - (1,483) Net cash from operating activities 6,948 7,821 45
Slide 46: Cash application: FY 2012
Cash application: FY 2012 2012 $m Opening net funds 2,849 Net cash from operating activities 6,948 Purchased Amylin intangible assets (3,360) Other net capex (1,060) Dividends/Net share buy-back (5,871) Acquisitions (1,187) Other movements 312 Closing net funds (1,369) Gross debt (10,310) Cash/Cash
Slide 47: Cash distributions
Cash distributions • FY 2012 dividend $2.80 per share • Progressive dividend policy confirmed (maintain or grow) Dividend • Basis for dividend cover revised to 2x Core earnings (new definition) • Cover likely to vary from the 2x cover target • FY 2012: Net $2.2bn prior to suspension Share repurchase
Slide 48: Core financials: FY 2012
Core financials: FY 2012 Previous definition New definition $m % sales $m % sales Revenue 27,973 27,973 Core Gross Margin 22,716 81.2 23,041 82.4 Distribution (320) 1.2 (320) 1.2 Core SG&A (8,541) 30.5 (8,389) 30.0 Core Other Income 1,027 3.7 1,068 3.8 Core Pre-R&D Profit 14,882 53.2 15,400 55.0 Cor
Slide 49: Guidance for 2013 (new Core basis)
Guidance for 2013 (new Core basis) Revenue (CER) Mid to High-single digit decline Core Operating Costs (CER) Hold to a slight increase vs 2012 (R&D + SG&A) Core Other Income < $600 million Reported tax rate Around 23 percent Core EPS (CER) Decline significantly > revenue decline (new definition) 49
Slide 50: Full Year Results 2012
Full Year Results 2012 NX> eoauazersy
Slide 51: Full Year Results 2012 - Pascal Soriot
Full Year Results 2012 Pascal Soriot, Chief Executive Officer
Slide 52: Unique combination of capabilities
Unique combination of capabilities Biologics Immunotherapeutics Antibody Small molecules engineering technology
Slide 53: R&D pipeline – small and large molecule
R&D pipeline – small and large molecule Oncology Legend moxetumomab pasudotox Respiratory & Inflamm. (CD22) haematological malignancies (inc. autoimmune.) MEDI0639 CVGI (DLL-4) solid tumours Neuroscience AZD5363 MEDI3617 Infection (and vaccines) (AKT) solid tumours (Ang2) solid tumours selumetinib A
Slide 54: Today: 5 key growth platforms
Today: 5 key growth platforms 1. Brilinta 2. Diabetes 3. Emerging Markets 4. Respiratory 5. Japan
Slide 55: Full Year Results 2012
Full Year Results 2012 NX> eoauazersy