Slide 1: Delivering Value for Patients and Shareholders
Delivering Value for Patients and Shareholders May 2014 Pascal Soriot CEO, AstraZeneca 1
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: Basis of AstraZeneca forecasts and targets
Basis of AstraZeneca forecasts and targets The AstraZeneca forecasts and targets in this presentation are extracted from the AstraZeneca Long Range Plan for 2014 to 2023 (the "LRP"), the AstraZeneca papers produced to support the LRP and AstraZeneca papers subsequently produced as part of the busine
Slide 4: What are we here to discuss?
What are we here to discuss? 1. AstraZeneca is executing its strategy 2. We have an exciting, rapidly progressing pipeline a. Significant commercial potential b. Oncology opportunity driven by a combination of a broad immuno- oncology portfolio with targeted therapies c. Strong competitive advantage
Slide 5: Key strategic priorities to drive shareholder value
Key strategic priorities to drive shareholder value 1 2 3 Achieve Return Be a great place scientific to growth to work leadership 5 5
Slide 6: AstraZeneca is on an ambitious journey
AstraZeneca is on an ambitious journey Acknowledged leaders in our core TAs Return to growth Rebuild the pipeline 2014 2017 2020 After 2020 Late stage pipeline Revenues expected At least 10 new Leadership in rebuilt focused on 3 to be broadly in line medicines expected core TAs & a balance of core T
Slide 7: We are accelerating our focus on building a competitive pipeline in our 3 core therapy areas
We are accelerating our focus on building a competitive pipeline in our 3 core therapy areas Respiratory, Inflammation, Cardio- Oncology Autoimmune Metabolism Core TAs Small Immuno- Protein Biologics Molecules therapies engineering 7 7
Slide 8: Pipeline
Pipeline 8
Slide 9: R&D changes fuelling pipeline transformation
R&D changes fuelling pipeline transformation Examples of recent additions to senior R&D leadership Global Medicines Development Briggs Morrison Antoine Yver Rachel Humphrey Head of Global Head of Oncology Small Head of Immuno-oncology Medicines Development Molecules Development Development Joined 20
Slide 10: We have a growing and accelerating pipeline
We have a growing and accelerating pipeline Phase 1 - 32 NMEs Phase 2 - 28 NMEs Phase 3 / Reg - 11 NMEs Small molecule Large molecule Small molecule Large molecule Small molecule Large molecule Volitinib (AZD6094) MEDI0639 AZD4547 MEDI-573 selumetinib moxetumomab MET solid tumours DLL-4 solid tumour
Slide 11: Our mid and late stage pipeline has significant commercial potential
Our mid and late stage pipeline has significant commercial potential Risk adjusted peak year sales ~$23bn1 Non-risk adjusted peak year sales ~$63bn2 70.0 70.0 60.0 60.0 Infection Neuro- science 50.0 50.0 CVMD 40.0 40.0 RIA 30.0 30.0 Infection Neuro- 20.0 science 20.0 CVMD Oncology RIA 10.0 10.0 Onco
Slide 12: 19 candidates for NME registration trial starts in 2014-15
19 candidates for NME registration trial starts in 2014-15 We anticipate 4-5 NME Phase lll starts in 2014 2014 2015 AZD9291 AZD4547 ATM AVI NSCLC gastric cancer serious infections MEDI4736 MEDI-573 RDEA3170 solid tumours metastatic breast cancer gout tralokinumab MEDI-551 sifalimumab/anifrolumab ast
Slide 13: 2014: Continued momentum in late stage pipeline
2014: Continued momentum in late stage pipeline AZD3293 (BACE) Alzheimer’s disease AZD1722 (NHE3) ESRD anifrolumab (IFN-αR) SLE sifalimumab (IFN-α) SLE tralokinumab (IL-13) mavrilimumab (GMCSFR) NMEs severe asthma rheumatoid arthritis AZD9291 (EGFR) AZD5069 (CXCR2) 2L NSCLC asthma MEDI4736 (PD-L1) M
Slide 14: The immuno-oncology market has significant potential
The immuno-oncology market has significant potential 40 $35bn 35 Market Potential ($bn) $29bn $30bn 30 $28bn 25 20 15 10 5 0 1 2 3 4 Barclays Leerink Swann BMO Capital Markets Citi 1 Barclays Capital Inc., Butler, 22 Jan, 2014 2 Leerink Swann LLC Equity Research, “Immuno-Oncology: The Future of Canc
Slide 15: Cancer Immunity Cycle: Broad set of immuno-oncology targets
“Cancer Immunity Cycle”: Broad set of immuno- oncology targets OX40, GITR, 41BB, CD27, TLRs, CD40 OX40, GITR, 41BB, CD27, TLRs, CD40, IL-2, IL-12 Chemokines, TLRs, OV VEGF, Ang-2 CARs, TCRs and XRT, Chemo, Vaccines, OV adoptive T cells Small Molecules, TLRs, CD40, therapies ADCs, GM-CSF, IFNa/b PD-L
Slide 16: Oncology: AZ strongly positioned to combine agents within and between key scientific mechanisms
Oncology: AZ strongly positioned to combine agents within and between key scientific mechanisms Tumour Tumour cell Antibody drug Immune drivers and killing conjugates mediated resistance therapies AZD9291 (EGFRm) Olaparib (PARP) Moxetumomab MEDI4736 (PD-L1) AZD4547 (FGFR) AZD1775 (Wee1) (CD22) MEDI6
Slide 17: A comprehensive platform well positioned to explore biologically synergistic combinations
A comprehensive platform well positioned to explore biologically synergistic combinations Ovarian Cancer Lung Cancer Breast Cancer PARP PD-L1 PD-L1 EGFR-TKI Faslodex PiK3A (AZD 9291) PARP VEGF PARP PiK3A PD-L1 MEK PARP WEE-1 PARP mTorc PD-L1 IRESSA PARP ATR PiK3A docetaxel1 PD-L1 PD-1 PARP PiK3A PAR
Slide 18: Key pipeline assets have strong competitive advantages
Key pipeline assets have strong competitive advantages Non-Risk Non-Risk Adjusted Adjusted PYS Analyst PYS Potential1 Range2 Key Dates Advantage MEDI4736 Q2:14 Potential first-to-market PD-L1 in Stage III NSCLC (incl.combination ~$6.5bn $2bn - $7bn (PhI data) following chemoradiation therapies) On
Slide 19: MEDI4736 (anti-PD-L1 mAb)
MEDI4736 (anti-PD-L1 mAb) Global Non-risk Adjusted Product Overview PYS Potential ~$6.5bn1 Profile – First to market Ph III study (Pacific) in $m differentiated NSCLC population 7,000 6,000 Upcoming newsflow – Ph I data at ASCO & Ph III monotherapy start in additional tumour Additional 5,000 tum
Slide 20: AZD9291 (3rd generation EGFR-TKI)
AZD9291 (3rd generation EGFR-TKI) Global Non-risk Adjusted Product Overview PYS Potential ~$3bn1 Profile – Awarded FDA Breakthrough Therapy 7 Major Markets Target Patients designation in 2nd line NSCLC $m 16K 66K 3,000 Upcoming newsflow – Ph I data at ASCO & 2,500 study start for PD-L1 combinati
Slide 21: Olaparib (PARP inhibitor)
Olaparib (PARP inhibitor) Global Non-risk Adjusted Product Overview PYS Potential ~$2bn1 Profile – Accepted for priority review by FDA 7 Major Markets Target Patients based on exciting Ph II data with PDUFA $m 6.0K 9.3K 285.4K 2,500 3 Oct 2014 Upcoming newsflow – Additional mono and 2,000 combin
Slide 22: PT003 (LABA/LAMA) & PT010 (LABA/LAMA/ICS)
PT003 (LABA/LAMA) & PT010 (LABA/LAMA/ICS) Global Non-risk Adjusted Product Overview PYS Potential ~$4bn1 Profile – First-in-class fixed dose combinations 7 Major Markets Target Patients in pMDI device $m 7.9M 10.6M 4,500 Upcoming newsflow – Ph IIb data for PT003 to 4,000 be presented at ATS in M
Slide 23: Benralizumab (anti-IL-5Rα mAb)
Benralizumab (anti-IL-5Rα mAb) Global Non-risk Adjusted Product Overview PYS Potential ~$2bn2 Profile – Targeting anti-IL-5R with potent 7 Major Markets Target Patients eosinophil depletion for potential best-in-class $m 942K 444K 2,000 efficacy1 1,800 Upcoming newsflow – Ph IIb data in both 1,6
Slide 24: Saxagliptin/Dapagliflozin FDC (DPP-4/SGLT-2)
Saxagliptin/Dapagliflozin FDC1 (DPP-4/SGLT-2) Global Non-risk Adjusted Product Overview PYS potential ~$3bn2 Profile – Fixed dose combinations for improved 7 Major Markets Target Patients HbA1C reduction with potential to develop triple $m 79.6M 3,500 combinations 3,000 Upcoming newsflow – Late
Slide 25: Further pipeline assets showing significant promise
Further pipeline assets showing significant promise Non-Risk Non-Risk Adjusted Adjusted PYS Analyst PYS Potential1 Range2 Key Dates Advantage 2014 Brodalumab Not Anti-IL17-RA with ongoing head-to head $0.5bn-$1.5bn (PhIII top line (anti-IL 17R) disclosed superiority studies vs Stelara results) RIA
Slide 26: Q1 2014: Continued momentum in late stage pipeline
Q1 2014: Continued momentum in late stage pipeline Regulatory milestones Compound Indication Milestone Farxiga/Forxiga type 2 diabetes US, JP approval Bydureon Dual Chamber Pen type 2 diabetes US approval Xigduo type 2 diabetes EU approval Myalept generalised lipodystrophy US approval Olaparib PSR B
Slide 27: Pipeline Newsflow
Pipeline Newsflow \ eoauazeusy
Slide 28: Near term value drivers: Expected key data readouts
Near term value drivers 2014: Expected key data readouts Compound Indication Milestone Quarter 2 Brodalumab psoriasis Ph III topline results Saxagliptin/Dapagliflozin type 2 diabetes Ph III (ADA1) MEDI4736 solid tumours Ph I (ASCO2) AZD9291 NSCLC Ph I (ASCO2) Quarter 3 Lesinurad gout Ph III topline
Slide 29: Near term value drivers: Expected regulatory milestones
Near term value drivers 2014: Expected regulatory milestones Compound Indication Milestone Quarter 2 Epanova hypertriglyceridaemia US approval received Bydureon Dual Chamber Pen type 2 diabetes JP filing Quarter 3 IRESSA EGFRm NSCLC US filing Naloxegol OIC US approval (PDUFA 16 Sep) Brilinta ACS JP
Slide 30: Near term value drivers: Data readouts at congresses
Near term value drivers 2Q 2014: Data readouts at congresses ATS – San Diego, May 16-20 Benralizumab (IL-5R) Ph II asthma and COPD Tralokinumab (IL-13) Ph II asthma Analyst meeting: Tuesday May 20, 2014 ASCO – Chicago, May 30-June 3 AZD9291 Ph I NSCLC MEDI4736 (PD-L1) Ph I monotherapy and
Slide 31: Near term value drivers: Potential NME & LCM submissions 2015-16
Near term value drivers Potential NME & LCM submissions 2015-16 PT003 LABA/LAMA COPD PT001 LAMA COPD Brodalumab1 IL-17R psoriasis NME Metreleptin EU benralizumab lipodystrophy IL-5R asthma selumetinib MEDI4736 MEK uveal melanoma PD-L1 NSCLC AZD9291 roxadustat (FG-4592) CH EGFR T790m NSCLC HIF anaemi
Slide 32: Strong Progress in Growth Platforms
Strong Progress in Growth Platforms 32 32
Slide 33: We have sharpened our focus on key growth platforms
We have sharpened our focus on 5 key growth platforms 1Q14 sales Long Term growth(1) Revenue Target(2) 1. Brilinta® 94% ~$3.5bn in 2023 2. Diabetes 106%(3) ~$8bn in 2023 3. Respiratory 12% ~$8bn in 2023 Mid-to-high single 4. Emerging Markets 11% digit growth Low single digit 5. Japan 13% growth 1 Gr
Slide 34: Brilinta: Establish trajectory and scientific leadership
Brilinta: Establish trajectory and scientific leadership Long term revenue target: ~$3.5bn Large untapped volume with active Extended LCM programme clinical trials to access opportunity key to long term growth % Oral Anti Platelets Volume Clinical trial 100 13 years to get to $10bn PYS for Plavix 90
Slide 35: Diabetes: Leverage our global franchise
Diabetes: Leverage our global franchise Long term revenue target: ~$8bn Growing the franchise Farxiga uptake exceeding recent NBRx NIAD1 launches in the US (Absolute) ~$8bn 6,000 Exenatide 5,000 SaxaDapa Farxiga NBRx (Absolute) 4,000 Farxiga 3,000 Onglyza 2,000 1,000 0 Week 13 Week 17 Week 21 Week 2
Slide 36: Respiratory: Establish trajectory and scientific leadership
Respiratory: Establish trajectory and scientific leadership Long term revenue target: ~$8bn Strong Symbicort US share Growing the franchise performance 2013 2014 YTD ~$8bn Share Growth Share Growth +3.7 Other 38% 37.6% Pearl Products +5.8 33% 33.9% Tralokinumab +3.5 Benralizumab 28% +3.9 29.8% Pulmi
Slide 37: Emerging markets: Build on China growth and re-focus around innovative products
Emerging markets: Build on China growth and re-focus around innovative products Long term revenue target: Mid to high single digit growth AZ continues to outpace the market in China MAT Growth1 26% 24% 22% 20% 18% 16% 14% 12% 10% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 14-Jan Jan 14-Feb Feb
Slide 38: Japan: Maximise growth brands Diabetes, Symbicort, Brilinta and Nexium
Japan: Maximise growth brands Diabetes, Symbicort, Brilinta and Nexium Long term revenue target: Low single digit growth PPI Value MS Continued strong performance, Key products expected to enjoy protected 40% Nexium #1 PPI in value growth for the medium term 35% Nexium Market Exclusivity Through 2
Slide 39: Delivering Growth
Delivering Growth 39 39
Slide 40: We expect our 2017 revenue to be broadly in line with our 2013 revenue
We expect our 2017 revenue to be broadly in line with our 2013 revenue… $ Revenue $ Revenue 2013 2017 Crestor, Nexium, Growth platforms Seroquel LoE in New launches US and EU 2013 business development …continued focus on costs and re-deployment Note: 2013 revenue is net sales as reported 40 40
Slide 41: Long Term Revenue Target
Long Term Revenue Target 2023 Revenue Target: >$45bn Drivers: Oncology $ Revenue $ Revenue CV/Metabolic 2013 2017 RIA Emerging Markets Strong and consistent revenue growth between 2017 and 2023 Operating leverage is expected to result in core earnings growth in excess of revenue growth during this p
Slide 42: Conclusions
Conclusions 42 42
Slide 43: Conclusions
Conclusions We have the strategy, size and focus to succeed Growth platforms and global presence One of the most exciting pipelines in the industry Science and innovation is at the heart of our culture Our transformation is almost complete and our people are focused on delivering Our indep
Slide 44: Glossary
Glossary AAIC – Alzheimer’s Association International Conference LCM – Life-Cycle Management ACR – American College of Rheumatology LRP – Long Range Plan ADA – American Diabetes Society MNC – Multi-National Company ACS – Acute Coronary Syndrome NIAD – Non-Insulin Anti-Diabetics ASCO – American Socie