AstraZeneca PLC · LSE:AZN
AstraZeneca — H1 2005 Earnings Presentation
29 slides from AstraZeneca's earnings presentation, 2005
Slide 1: Second Quarter and Half Year Results 2005
Second Quarter and Half Year Results 2005 ANNUAL BUSINESS REVIEW Sir Tom McKillop Chief Executive Officer ANNUAL BUSINESS REVIEW 1
Slide 2: Today's agenda; Headline results Q2 05
Today’s agenda David Brennan Sales performance Jon Symonds Financial performance Productivity John Patterson R&D performance 3 Headline results Q2 05 2005 2004 Actual CER $m $m growth growth Sales 6,132 5,288 +16% +13% Operating profit 1,718 1,052 +63% +53% EPS $0.75 $0.48 +55% +40% 4
Slide 3: Headline results 1H 05
Headline results 1H 05 2005 2004 Actual CER $m $m growth growth Sales 11,875 10,362 +15% +12% Operating profit 3,171 2,104 +51% +44% EPS $1.38 $0.95 +45% +37% Dividends $0.38 $0.295 +29% Share repurchase $1,182m $968m 5 David Brennan Executive Director North America ANNUAL BUSINESS REVIEW 3
Slide 4: Sales by region; strong performance in Emerging Markets
Headline results 1H 05 2005 2004 Actual CER $m $m growth growth Sales 11,875 10,362 +15% +12% North America 5,731 5,016 +14% +13% Europe 4,362 3,803 +15% +8% Japan 736 666 +11% +9% Rest of World 1,046 877 +19% +15% 7 AstraZeneca: strong performance in Emerging Markets Market share and sales growth i
Slide 5: China: strong growth continues
China: strong growth continues US$M Sales Force 250 Yr/Yr: 38% expansion +400 since Oct 04 to Harbin 1400 reps 200 Yr/Yr: 28% Excellence in Shenyang leveraging national & regional 150 Yr/Yr: 30% reimbursement Beijing Tianjin All products Yr/Yr: 16% Shijiazhuang Qingdao reimbursed Xian Nanjing 10
Slide 6: 1H 2005 sales: Key Growth Drivers; Nexium
1H 2005 sales: Key Growth Drivers Sales CER $m % growth Nexium® 2,259 +22% Crestor® 590 +72% Symbicort® 502 +21% Arimidex® 553 +50% Seroquel® 1,300 +37% Total 5,204 +32% 11 Nexium® PPI Market* Global $22bn pa Growth +4% pa Nexium Performance 1H sales $2,259m, up 22% US sales $1,514m, up
Slide 7: Nexium US prescription market share
Nexium® US TRx Market Share (PPI) 60% 50% Total Prescription Market Share (PPI) 40% 30% 20% 10% 0% Ju 0 Ju 1 Ju 2 Ju 3 Ju 4 5 M 00 M 01 M -02 M -03 M -04 M -05 Ja 00 Ja 01 Ja 02 Ja 03 Ja 04 Se -00 Se -01 Se -02 Se 03 Se 04 M 00 M 01 M 02 M 03 M 04 M 05 N 00 N 01 N 02 N 03 N 04 -0 -0 -0 -0 -0 -0 - -
Slide 8: Nexium world market share; Crestor
Nexium®: world market share 27 26.5 26 25.5 25 Market Share % 24.5 24 23.5 23 22.5 22 21.5 May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May 2004 2004 2004 2004 2004 2004 2004 2004 2005 2005 2005 2005 2005 Source: IMS Health, IMS MIDAS Monthly. May 2005. Launched markets only included. 15 Crestor®
Slide 9: Crestor market share
Crestor®: TRx share ex-US 14% Italy Canada 12% 10.9% 12.2% 10.6% 10% Netherlands 8% France 6% 5.7% 4% 2% 0% wk wk 3 wk 9 wk 5 wk wk wk wk wk wk wk wk wk wk wk wk wk wk wk wk wk 10 10 11 12 13 19 25 31 37 43 49 55 61 67 73 79 85 91 97 1 7 1 Share of C10A1, Statins 17 Sources: Can, NL, It, Fr, - IMS H
Slide 10: Symbicort; Arimidex growth continues
Symbicort® Fixed Combination Market* Global $6.1bn $3.1bn Growth +23% pa Ex-US Market* $3.0bn $3.1bn Growth +21% pa Performance HY sales $502m, up 21% US Ex-US *Source: IMS Health, IMS MIDAS ; MAT Qtr1/2005. Actual USD, growth in USD CER 19 R3F1, B2-Stim+Cortic Inhalants Arimidex®: growt
Slide 11: Arimidex: significant opportunity for continued growth
… With significant opportunity for continued growth 100 80 % volume share tamoxifen 60 61% 40 Arimidex® 24% 20 0 May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr- 03 03 03 03 03 03 03 03 04 04 04 04 04 04 04 04 04 04 04 04 05 05 0
Slide 12: Seroquel
Seroquel® Atypical Antipsychotic Market* Global $14bn Growth +13% pa Seroquel® performance 1H sales $1,300m, up 37% US sales $933m, up 34% Other markets $367m, up 44% *Source: IMS Health, IMS MIDAS Quantum; 47 countries; MAT Qtr1/2005. Actual USD, growth in USD CER 23 Seroquel® is driv
Slide 13: Strong momentum of growth portfolio; 1H 2005 sales by region
Strong momentum of growth portfolio 14000 12000 10000 8000 $m 6000 4000 2000 0 Q2 00 MAT Q2 01 MAT Q2 02 MAT Q2 03 MAT Q2 04 MAT Q2 05 MAT Seroquel Arimidex Nexium Symbicort Crestor Atacand Casodex Zomig Faslodex Iressa 25 1H 2005 sales by region Sales CER $m % growth North America 5,731 +13% Europe
Slide 14: Strong first half performance
Jon Symonds Chief Financial Officer ANNUAL BUSINESS REVIEW Strong first half performance Effective Cost Sales Growth Management + 12% CER - 3% CER Strong earnings growth: +37% CER Margin: 26.7% of sales 28 14
Slide 15: Sales and costs: maintaining the trends
Sales and costs: maintaining the trends Q2 05 25% Launch of 20% Crestor® MAT Growth vs Prior Year 15% 10% 5% Prilosec® Expiry 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2002 2003 2004 2005 Total Sales - MAT Growth R&D/ SG&A - MAT Growth 29 Total/US/ROW Sales Growth Rates* MAT Growth vs Prior Year
Slide 16: Sales phasing by Quarter; Cost trend
Sales phasing by Quarter 7,000 +9% +13% 6,000 5,000 4,000 3,000 2,000 1,000 - Q1 Q2 Q3 Q4 2004 2005 31 Cost trend: 2002 to present R&D/ SG&A - MAT Growth 25% 20% MAT Growth vs Prior Year 15% 10% 5% 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2002 2003 2004 2005 32 16
Slide 17: Productivity improvements; 2005 Outlook and Shareholder Return
Productivity improvements across the business Gross Margin Underlying margin improvement Mix benefit Fixed cost growth less than volume growth SG&A Declined by 2% CER (incl. provision) Sales force effectiveness Marketing Excellence R&D 6% CER below 2004 Phasing vs strong H104 33 2005 Outlook a
Slide 18: Changes in R&D organisation
John Patterson Executive Director, Development ANNUAL BUSINESS REVIEW Changes in R&D organisation More effective decision-making Greater project focus and improved project capability Stronger project technical and medical review Consolidation and focusing of Therapy Areas Disease Area stra
Slide 19: Seroquel; Crestor: GALAXY
Seroquel® Bolder II study in bipolar depression has finished recruitment US submission around year end Sustained Release for schizophrenia - on track for 1H 06 global submission Other brand enhancing LCM opportunities 37 Crestor®: GALAXY 7 completed studies: COMETS MERCURY I MERCURY II PULSA
Slide 20: Crestor: GALAXY; Symbicort
Crestor®: GALAXY GALAXY >48,000 patients, >50 countries Studies due to complete in 2006 Lipid studies: EXPLORER, ECLIPSE Atherosclerosis studies: ASTEROID, METEOR GISSI-HF (Italy) study fully recruited 7000 patients with symptomatic heart failure Endpoint mortality and morbidity Re
Slide 21: SMILE and COMPASS study design
SMILE study design 12-month double-blind study: All patients received Symbicort® 160/4.5 µg bid both during run-in and following randomisation Symbicort® + Bricanyl® 0.4 mg as reliever n=1141 Run-in Symbicort® + Bricanyl® as R Symbicort® + Oxis® 4.5 µg as reliever n=1140 reliever Enrolled: n=3829 Ra
Slide 22: Iressa; Thrombin inhibition
Iressa® NSCLC The West Data from ongoing studies to be shared with US and EU regulators – Study 721 and new programme – Science data, including gene mutations and biomarkers The East All licenses for lung cancer maintained Expanding into earlier disease Other tumours – development cont
Slide 23: Phase III: Galida; Cerovive SAINT I results
Phase III: Galida™ On track for regulatory submissions in 2007 GALLANT programme currently 10 studies ongoing: 2004 2005 2006 2007 SO ND JF MA MJ JA SO ND JF MA MJ JA SO ND JF MA ARMOR GAL 2 (mono v Plac) GAL 4 (mono v SU) GAL 5 (mono v Met) GAL 6 (mono v Pio) GAL 7 (add to SU) GAL 8 (add to Met
Slide 24: Phase III: Zactima; MOA Avastin and AZD2171
Phase III: Zactima™ (ZD6474) Inhibitor of VEGF and EGF signalling Enters phase III Phase II data in NSCLC shows unprecedented anti-tumour activity As monotherapy and in combination with chemotherapy Thyroid cancer trials Activity seen in RET mutated hereditary medullary thyroid cancer
Slide 25: AZD2171; Late development project summary July 05
AZD2171 Potent, orally bioavailable, VEGF signalling inhibitor Best in class profile Inhibits all three VEGF signalling pathways Once a day tablet Manageable tox profile Encouraging early clinical data NCI clinical programme planned Accelerate to phase III by year end 49 Late developme
Slide 26: Phase II; Early development project summary
Phase II Ongoing: AZD0837 – progressing AZD6140 - decision later this year AZD7009 i.v. - studies ongoing AZD9684 - studies ongoing AZD4054 – studies ongoing AZD9056 - studies ongoing in RA only AZD7371 – studies ongoing in OAB only Terminated: AZD0865, AZD8129 On hold : AZD7
Slide 27: Other portfolio developments
Other portfolio developments Biopharmaceuticals AZD8593 for haemostasis Monoclonal antibodies Abgenix, CaT and AZD3102 Development and discovery partnerships Humanised antibodies for oncology, inflammatory and neuroscience disease areas 53 Other portfolio developments Licensing activity
Slide 28: Platform for success
Platform for success Supporting the growth brands The development portfolio Licensing activities R&D organisational changes 55 Sir Tom McKillop Chief Executive Officer ANNUAL BUSINESS REVIEW 28
Slide 29: Cautionary Statement Regarding Forward-Looking Statements
Cautionary Statement Regarding Forward-Looking Statements In order to utilise the ‘Safe Harbor’ provisions of the United States Private Securities Litigation Reform Act of 1995, AstraZeneca is providing the following cautionary statement. This presentation contains forward-looking statements with re