AstraZeneca PLC · LSE:AZN
AstraZeneca — Investor Presentation (December 2016)
27 slides from AstraZeneca's investor presentation, Dec 23, 2016
Slide 1: A focused biopharmaceutical company
A focused biopharmaceutical company General presentation
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 1995, we are providing the following cautionary statement: This document contains certain forward-looking statements with respect to the operations,
Slide 3: Strategic priorities
Strategic priorities Achieve 1 Return 2 3 Be a great scientific to growth place to work leadership 3
Slide 4: New Cambridge, UK R&D centre and HQ
New Cambridge, UK R&D centre and HQ Scientific collaborations key driver behind move 4
Slide 5: Focused strategy: three therapy areas
Focused strategy Three therapy areas Cardiovascular & Oncology Respiratory Metabolic Diseases Commitment to further focus the portfolio 5
Slide 6: Pipeline value unlocked
R&D productivity increase Publications Phase III / Registration NMEs Unlocking pipeline value 552 15 13 Pipeline value 11 unlocked 397 Pipeline value unlocked 7 7 6 2010 2015 2015 2010 2010 2011 2012 2013 2014 2015 High-impact publications Registration Medium-impact publications Phase III 2015 201
Slide 7: Key 2016 news flow from late-stage pipeline
Key 2016 news flow from late-stage pipeline Supporting on-going pipeline-driven transformation Lynparza Tagrisso durvalumab Brilique Tagrisso Bevespi Qtern ZS-9 durvalumab prostate cancer lung cancer bladder cancer post MI lung cancer COPD type-2 diabetes hyperkalaemia bladder cancer Breakthrou
Slide 8: Key Phase III medicines & lifecycle
Key Phase III medicines & lifecycle Rich pipeline across three therapy areas Cardiovascular & Metabolic Oncology Respiratory Diseases durvalumab1 ZS-91 benralizumab multiple cancers hyperkalaemia severe, uncontrolled asthma / COPD durva + treme roxadustat tralokinumab multiple cancers anaemia sever
Slide 9: Full pipeline of new medicines (NMEs)
Full pipeline of new medicines (NMEs) Oncology Cardiovascular & Metabolic Diseases Respiratory Other 1 Includes significant fixed-dose combination projects, and parallel indications that are in a separate therapy area (See LCM chart for other parallel indications and oncology combination projects)
Slide 10: Late-stage pipeline news flow 2017 & 2018
Late-stage pipeline news flow 2017 & 2018 Unlocking and realising potential of new medicine H1 2017 H2 2017 2018 Regulatory decisions Faslodex - breast cancer (1L) (JP) Tagrisso - lung cancer (CN) benralizumab - severe, uncontrolled asthma durvalumab - bladder cancer (US) Tagrisso - lung cance
Slide 11: Growth platforms
Growth platforms New Oncology added in 2016 FY 2015 % % Total Q4 2015 % $m change Revenue $m change Growth Platforms 14,003 +11 57 3,588 +11 Respiratory 4,987 +7 - 1,289 +4 Brilinta/Brilique 619 +44 - 174 +43 Diabetes 2,224 +26 - 585 +24 Emerging Markets 5,822 +12 - 1,428 +10 Japan 2,020 +4 - 5
Slide 12: Strategic value-creation framework
Strategic value-creation framework R&D productivity & focus drive decisions Externalisation1 (milestones/royalty) Accelerate/enhance value;; or new medicines outside focus Focus on three Product Sales R&D productivity main therapy (Including Growth Platforms) areas ‘Following the science’ Oncology
Slide 13: Building a pure-play innovator in three therapy areas
Building a pure-play innovator in three therapy areas Focusing and slimming down portfolio to optimise resource allocation ü BACE inhibitor 1. Accessing ü Brodalumab Therapy Area (TA) ü Tralokinumab (AD1) capability / upside ü Durvalumab (haematology) Recurring • R&D investment revenue in main
Slide 14: Emerging Markets: geographic platform for growth
Emerging Markets Geographic platform for growth China 11% of Europe Product Sales US 23% of Product Sales Japan 40% of 9% of Product Product Sales Sales Emerging Rest of Markets World (ex-China) Established 14% of (ex-Japan) Product Sales 4% of 2015 Product Sales as reported Product Sales 14
Slide 15: Emerging Markets: primary care key to success
Emerging Markets Primary care key to success 6% 47% Asia 53% $100-130bn growth 94% North America 24% Europe $115-145bn $25-35bn growth 76% growth 7% 8% AFME 93% $15-25bn Specialty Care Latin growth America Primary Care $25-35bn growth 92% 40% World 60% $305-335bn growth Share of absolute growt
Slide 16: Profit & Loss
Profit & Loss Leveraging top-line resilience FY 2015 % % Total Q4 2015 % $m change Revenue $m change Total Revenue 24,708 +1 100 6,399 +2 Product Sales 23,641 (1) 96 6,207 - Externalisation Revenue 1,067 +140 4 192 +490 Core Cost of Sales (4,119) (6) 17 (1,209) +3 Core Gross Profit 20,589 +2 831 5
Slide 17: Debt profile and credit ratings
Debt profile and credit ratings $m 3,000 2,000 1,000 0 2016 2017 2018 2019 2020 2021 2023 2024 2025 2028 2031 2037 2042 2045 Overdraft + finance leases Commercial Paper GBP EUR USD – Moody’s: A3 Stable outlook – Standard & Poor’s: A- Stable outlook Status as of H1 2016 Results on 28 July 2016. Fore
Slide 18: Sustainability
Sustainability As a company built on delivering positive health outcomes, sustainability underpins everything we do • As we strive to reach 200 million patients by 2025, we are evolving our approach and in 2017 will roll out a roadmap that will further embed sustainability into our DNA • This will e
Slide 19: Sustainability - recent highlights
Sustainability - recent highlights #2 Overall in Pharmaceuticals, Biotechnology and Life Sciences industry group #1 in sector: Health Outcomes Contribution, Marketing Practices, Climate Strategy Healthy Heart Africa Program: Over one million patients screened in Increased the number of senior manag
Slide 20: Great place to work: discovery, development and commercial structure
Great place to work Discovery, development and commercial structure Late-stage Discovery and early development development Commercial Innovative Medicines and Early Development Biotech Unit (small molecules) Global Global Portfolio Internal and Collaborations and Medicines & external combinations D
Slide 21: Great place to work
Great place to work Gothenburg, Sweden Cambridge, UK Gaithersburg, US Strategic R&D Centre Headquarters Strategic R&D Centre 21
Slide 22: Great place to work: realising company vision
Great place to work Realising company vision 1. A passion for people 2. Strong, supportive, development leadership at all levels 6. Access to medicines Values and 3. Flawless technology & social responsibility Purpose and ways of working 5. Environmental 4. Energizing sites and sustainability workpl
Slide 23: Great place to work: external recognitions
Great place to work External recognitions 23
Slide 24: On track: Pipeline-driven transformation
On track: Pipeline-driven transformation New AstraZeneca is emerging from patent cliff • On track with financials and long-term goals • 13 new potential medicines in Phase III/under registration • Oncology progressing ahead of expectations – Tagrisso and Lynparza – Immuno-Oncology • Busy news flo
Slide 25: On track: Long-term goals
On track: Long-term goals >$45bn in 2023 2012-2014 2015-2017 2018+ Building strong Delivering on return Sustainable delivery foundations to growth and growth Target is at constant exchange rates (2013) which is equivalent to ~$40bn at current exchange rates 25
Slide 26: Investor Relations
Investor Relations Investor Relations Cambridge, UK Thomas Kudsk Larsen +44 203 749 5712 Craig Marks +44 7881 615764 Henry Wheeler +44 203 749 5797 Nick Stone +44 203 749 5716 Christer Gruvris +44 203 749 5711 Washington D.C. area, US Lindsey Trickett +1 240 543 7970 Mitchell Chan +1 240 477 3771 To
Slide 27: Confidentiality Notice
Confidentiality Notice This file is private and may contain confidential and proprietary information. If you have received this file in error, please notify us and remove it from your system and note that you must not copy, distribute or take any action in reliance on it. Any unauthorized use or dis