Astrazeneca Plc · LSE:AZN
Astrazeneca — Investor Day (March 2013)
186 slides from Astrazeneca's investor day presentation, Mar 4, 2013
Slide 1: AstraZeneca Investor Day 2013
AstraZeneca Investor Day 2013 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: Innovation and Growth: Our strategy
Innovation and Growth Our strategy Pascal Soriot Chief Executive Officer 3
Slide 4: Our vision
Our vision To be a global biopharmaceutical business delivering great medicines to patients through innovative science and excellence in development and commercialisation • A science-led, innovation strategy • Broad R&D platform focused on 3 core TAs • Balanced portfolio of specialty and primary car
Slide 5: Our strategy remains focused on innovation
Our strategy remains focused on innovation… OTC Generics Animal Health BGx Innovative Rx Consumer Health Nutritionals Devices Health services 5
Slide 6: A different set of choices on how we execute
…but with a different set of choices on how we execute Focus our R&D and Commercial investments Prioritise & accelerate promising assets and BD Transform our innovation model and the way we work BD = business development 6
Slide 7: AstraZeneca today...
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Slide 8: AstraZeneca has strong foundations to build on
AstraZeneca has strong foundations to build on Commercial Presence Pipeline & Science Unique combination of small molecules, Strength in primary care, cardiovascular, biologics, immunotherapies, oncology, metabolism & respiratory protein engineering Strong position in China Growing Phase II and an i
Slide 9: ...but faces a number of key challenges
…but faces a number of key challenges R&D productivity and Market position and Phase III delivery patent expiries Launch performance Cost structure Culture and ways Complexity and of working fragmentation 9
Slide 10: We are focused on returning to growth
Illustrative We are focused on returning to growth Declining major brands Revenue Internal Growth Platforms Established portfolio Time 10
Slide 11: Our path to success
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Slide 12: A bold ambition with 3 key priorities
A bold ambition with 3 key priorities Achieve 1 Return 2 Be a great 3 scientific to growth place to work leadership 12
Slide 13: Achieve scientific leadership
Achieve 1 FOCUS on distinctive science in 3 core TAs PRIORITISE & ACCELERATE our pipeline scientific leadership TRANSFORM our innovation culture & model 13
Slide 14: Focus on distinctive science in 3 core therapy areas
We will focus on distinctive science in Achieve 1 scientific leadership 3 core therapy areas Cardio- Respiratory/ Metabolism Oncology inflammation Infection & Vaccines Neuroscience Core TAs Opportunity-Driven Small Protein Biologics Immuno-therapies Molecules engineering 14
Slide 15: Prioritise investment in key assets and Phase II pipeline
We will prioritise investment in key assets and pull Achieve 1 scientific leadership through promising phase II pipeline Invest Accelerate Immediately accelerate/invest into Sifalimumab / Lesinurad key NMEs and LCMs MEDI-546 Pull-through promising Phase II Benralizumab pipeline with over 20 NMEs
Slide 16: Attractive opportunities in our pipeline
A number of attractive opportunities in our pipeline Achieve 1 scientific leadership AZD5069 benralizumab brodalumab1 (2015) Potential peak year sales fostamatinib (2013) lesinurad (2014) MEDI-551 naloxegol (2013) for New Medicines Over olaparib (2013) $1B selumetinib sifalimumab / MEDI-546 tralokin
Slide 17: Strengthen pipeline through licensing, alliances and partnering
We will strengthen pipeline through R&D licensing, Achieve 1 scientific leadership alliances & scientific partnering activity • Greater intensity of academic and biotech alliances • Prioritise licensing in oncology, respiratory/inflammation & CV metabolism • Seek partnerships and bolt-on acquisition
Slide 18: Transform our innovation culture and R&D model
To ensure long term success we will transform our Achieve 1 scientific leadership innovation culture and R&D model Create autonomous biotechs to drive 1 science & innovation Increase emphasis on novel biology & 2 personalised healthcare AZ IMED Increase proximity to bioscience clusters 3 and co-loca
Slide 19: Transform our innovation culture and R&D model (olaparib example)
To ensure long term success we will transform our Achieve 1 scientific leadership innovation culture and R&D model Gastric Create autonomous biotechs to drive BRCAm Advanced 1 science & innovation BRCAm ovarian breast Increase emphasis on novel biology & Olaparib 2 personalised healthcare Early Lung
Slide 20: Co-locate around three strategic sites
Increase proximity to bioscience clusters Achieve 1 scientific leadership and co-locate around three strategic sites Create autonomous biotechs to drive Mölndal 1 science & innovation Cambridge Increase emphasis on novel biology & Gaithersburg 2 personalised healthcare Increase proximity to bioscien
Slide 21: Co-locate around three strategic sites: Gaithersburg, Cambridge, Mölndal
Increase proximity to bioscience clusters Achieve 1 scientific leadership and co-locate around three strategic sites Gaithersburg Cambridge Mölndal Co-locate around Co-locate R&D in world-class Leverage historical strength biologics/specialty care science cluster Respiratory and CV/Met Proximity to
Slide 22: Return to growth
Return 2 FOCUS on key growth platforms ACCELERATE through business development to growth TRANSFORM through specialty care / biologics 22
Slide 23: We will focus on AZ growth platforms
We will focus on AZ growth platforms Return to growth 2 1. Cardiovascular / Brilinta Establish scientific leadership, reset trajectory 2. Diabetes Maximise assets and alliance to become a leader 3. Emerging Markets Build on China strength and re-focus around innovative products 4. Respiratory Exploi
Slide 24: We believe we can do better than consensus
We believe we can do better than consensus Return to growth 2 2018 Consensus estimate Brilinta 1.3 Diabetes 2.3 Emerging Markets 7.6 Respiratory 3.7 Japan 2.3 Pipeline 1.1 Total revenues 21.5 Values $bn. AZ Consensus Post Q4 2013. Japan value projected from previous proportion of Established ROW 24
Slide 25: Build biologics/specialty care potential
Build biologics/specialty care potential to drive Return to growth 2 sustainable longer term growth Development Pipeline Today • On track for sustainable delivery of 1 BLA/year from 2016 ~50% ~50% Biologics Small Molecules • Convert strong biologics pipeline into future launches • Create a balanced
Slide 26: Be a great place to work
Be a great 3 FOCUS on simplification of our business DRIVE continued productivity improvements place to work EVOLVE our culture 26
Slide 27: A sound financial framework
A sound financial framework 27
Slide 28: Our Financial Objectives and Capital Allocation Policy
Our Financial Objectives and Capital Allocation Policy Drive Reinvest Maintain Fund on-market for growth progressive value-enhancing value and value Maintain dividend business progressive development dividend & acquisitions policy 48-52% core Reinvest up to 50% of Hold or Grow DPS; pre-R&D margin on
Slide 29: Business development activity will be a key focus
Business development activity will be a key focus Research deals Increase early stage Research deals and academic alliances Peer collaborations Focus Seek 1-2 additional global partnerships beyond BMS and Amgen alliances areas In-licensing and bolt-on acquisition Pursue partnering and bolt-on acquis
Slide 30: Our value proposition to investors
Our value proposition to investors “Pure play” Innovation A focused on-market …combined with a …with disciplined portfolio in 3 core TAs distinctive R&D capital allocation, and a strong global platform and a growing and a commitment to a commercial presence… late stage pipeline… progressive dividend
Slide 31: Why AstraZeneca?
Why AstraZeneca? Differentiated strategy Re-focused for delivery Pure play innovation/science strategy Refocused efforts on 3 core TAs, resources combined with global commercial scale and BD/M&A efforts prioritised for growth and innovation Growth levers Building for sustainability Internal
Slide 32: Delivering on the potential of BRILINTA
Delivering on the potential of BRILINTA Investor Day, Draft 10: 4th March 2013 Paul Hudson Executive Vice President, North America 32
Slide 33: Our ambition: grow BRILINTA to a multi $billion brand
Our ambition To grow BRILINTA to a multi $billion brand 2013 2016 2020 Lead ACS Best-in-class OAP Broaden OAP Use 33
Slide 34: Large OAP opportunity with double digit growth
Large OAP opportunity with double digit growth % Sales - $8.9 bn % Volume 100 100 90 20% ROW 90 23% Stroke 80 3% Germany 80 5% China 70 5% France 70 14% PAD 60 12% Japan 60 16% Elective Stent 50 50 40 40 27% Post-ACS 30 55% USA 30 20 20 10 10 20% ACS 0 0 CAGR ’02-’12: CAGR ’02-’12: 12.5% 13.6% Sourc
Slide 35: BRILINTA saves more lives compared to clopidogrel in ACS
BRILINTA saves more lives compared to clopidogrel in ACS 21%RRR in CV deaths An estimated 100,000 more lives with 12 months of treatment saved every year Treating every heart attack patient worldwide with BRILINTA vs. clopidogrel would save an estimated 100,000 more lives every year References: 1. B
Slide 36: US plan to accelerate growth
US plan to accelerate growth Organisation Key actions • Made securing preferred unrestricted access a priority • Single minded focus on CV mortality • ‘Up skilling’ of existing customer facing roles • Dedicated expert resource across entire patient pathway • Significant increase in investment 36
Slide 37: US plan to accelerate growth: access and affordability
US plan to accelerate growth Access & Organisation Affordability Key actions • Retail pharmacy promotion • Launched ‘Access My BRILINTA’ programme • Broader approach to contracting – Commercial and Medicare Part D • Expand preferred unrestricted access to 80% 37
Slide 38: Result: US access has significantly improved
Result: US access has significantly improved 82% 57% 57% On Commercial Medicare D Formulary* Preferred** Preferred** from 56% from 21% from 8% Source: iProfiler + RSM Hospital Formulary Updates; Fingertip Formulary *Measured Mar 2012 vs Feb 2013 **Measured Mar 2012 vs Mar 2013 38
Slide 39: US plan to accelerate growth: strategy and messaging
US plan to accelerate growth Access & Strategy & Organisation Affordability Messaging Key actions • Refocused organisation on CV mortality as core differentiator • Executed a refocused promotional campaign in June • Expansion of strategy and messaging to include benefits in acute setting • Focus on
Slide 40: Improved recall of CV mortality benefit
Results: Improved recall of CV mortality benefit 60% 50% 48% 40% 30% * 31% 20% BRILINTA EFFIENT PLAVIX 10% 9% 0% March'12 April '12 May '12 June '12 July '12 August '12 September October '12 November December '12 '12 '12 * Enhancement to messaging, training and execution Source: Biovid ATU; Among in
Slide 41: Understanding the Patient Pathway
Understanding the Patient Pathway Access & Strategy & Patient Organisation Affordability Messaging Pathway • Chest Pain • Ambulance Initial Treatment • Emergency room Decision • Cath lab / surgery • Coronary care unit Discharge & • Primary care Follow-Up 41
Slide 42: US plan to accelerate growth: patient pathway
US plan to accelerate growth Access & Strategy & Patient Organisation Affordability Messaging Pathway Key actions • Conducted in depth analysis of major patient touch points and decisions • 20% increase in size of CV specialty team • 40% increase in Cardiologists’ Share of Voice • 3X number of Prima
Slide 43: US plan to accelerate growth: scientific understanding
US plan to accelerate growth Access & Strategy & Patient Scientific Organisation Affordability Messaging Understanding Pathway Key Actions • 30% increase in field based scientific staff including physicians • 2X number of promotional speaker programmes • 3X increase in the number of medical educatio
Slide 44: Performance Improvement Since January
Performance Improvement Since January BRILINTA Retail NBRx 1,200 1,000 800 600 08/31/12 09/21/12 10/12/12 11/02/12 11/23/12 12/14/12 01/04/13 01/25/13 02/15/13 03/08/13 4 Week Rolling Average Source: IMS Health NPA Weekly; IMS Health NPA Market Dynamics (Retail Only) 44
Slide 45: Expectations from acceleration plan
Expectations from acceleration plan 2012 2H 2013 Q1 2014 Steady increase in Strong acceleration Material impact on TRx & NBRx in TRx & NBRx trend financial performance 45
Slide 46: Launch learnings are resulting in success in RoW
Launch learnings are resulting in success in RoW 60% Brilinta Prasugrel ACS Patient Hospital Discharge Share 50% Clopidogrel 40% 30% 20% 10% 0% Germany UK Italy France Months from launch 26 24 11 7 Source: AstraZeneca Hospitals with Brilinta on protocols Tracker Study, December 2012 46
Slide 47: Our ambition to grow Brilinta to a multi $billion brand
Our ambition – to grow Brilinta to a multi $billion brand 2016 2013 2020 Best-in-class OAP Lead ACS PLATO Broaden OAP Use PEGASUS, EUCLID, (Stroke) 47
Slide 48: Delivering on the potential of BRILINTA (medical affairs)
Delivering on the potential of BRILINTA Investor Day, Draft 10: 4th March 2013 Terry Ferguson Vice President Global Medical Affairs Cardiovascular Therapeutic Area Executive Director US Medical Affairs and Strategic Development 48
Slide 49: Why Focus on Troponin (+) Patients
Why Focus on Troponin (+) Patients Event Rates in Troponin (+) and (-) Patients in PLATO 15 Event Rate 12 hs-Tn (+) 9 (> 14 ng/ml) 6 3 0 CVD/MI/Stroke CVD/MI CVD Total Death 15 Ticagrelor Event Rate 12 hs-Tn (-) 9 (< 14 ng/ml) Clopidogrel 6 3 0 CVD/MI/Stroke CVD/MI CVD Total Death Reference: Wallent
Slide 50: ASA Dose in Current Treatment Guidelines
ASA Dose in Current Treatment Guidelines ASA Dose and Primary Outcome Events in PLATO Most guidelines now recommend low maintenance doses of aspirin Example: The ACCF/AHA/SCAI PCI Guidelines now say: “After PCI it is reasonable to use ASA 81 mg in preference to higher maintenance doses” References:
Slide 51: The PARTHENON clinical development programme
The PARTHENON clinical development programme 2016: Best-in-class 2020: Broaden 2013: Lead ACS OAP OAP Use PLATO PEGASUS ACS EUCLID PAD Stroke Stroke Range of planned and proposed life cycle management programmes The PARTHENON programme will include 60,000+ patients Note: This slide is necessarily fo
Slide 52: PARTHENON and the current world of OAP Rx
PARTHENON and the current world of OAP Rx Incident ACS Post ACS PAD Stroke Invasive Medical 1 – 3 yr Funding Label Label PEGASUS EUCLID committed; Brilinta (PLATO) (PLATO) (Submit 2015) (Submit 2016) planning underway ticagrelor Plavix Label Label No Label Label Label clopidogrel (non-acute) Effient
Slide 53: What does it take to be successful?
What does it takes to be successful ? RWE Studies Registries HECON data Needs ACC, AHA, ESC Primary Care Emergency Medicine Nursing Data Outreach Pharmacists Academic Groups ISSs Preclinical Studies 53
Slide 54: Our ambition to grow Brilinta to a multi $billion brand
Our ambition – to grow Brilinta to a multi $billion brand 2016 2013 2020 Best-in-class OAP Lead ACS PLATO Broaden OAP Use PEGASUS, EUCLID, (Stroke) Note: This slide is necessarily forward looking and includes areas for which additional studies may be explored for the purpose of seeking additional in
Slide 55: Return to growth: Diabetes
Return to growth Diabetes Ruud Dobber Executive Vice President, Europe 55
Slide 56: Our objectives today
Our objectives today 1 To highlight diabetes opportunity To highlight the potential and performance of our unique 2 Alliance portfolio To highlight the initiatives we are taking to strengthen and 3 accelerate our diabetes franchise 56
Slide 57: Diabetes is a growing global health emergency
Diabetes is a growing global health emergency Over …growing to over 550M by 2030 350M patients with …up to 50% of all cases are undiagnosed diabetes globally today …2/3 of patients are living in emerging markets Source: International Diabetes Federation 2011 – Regional estimates for diabetes (20-79
Slide 58: AZ/BMS alliance offers the broadest non-insulin anti-diabetic portfolio
AZ/BMS alliance offers the broadest innovative non-insulin anti-diabetic portfolio AZ/BMS Company Alliance 1 2 3 4 5 6 7 8 9 DPP-4 20141 20141 20131 SGLT-2 20141 20141 GLP-1 Insulin 1 2013, 2014 expected launch dates of products Source: IMS Data February 2013, AZ analysis 58
Slide 59: We are present in the fastest growing classes
We are present in the fastest growing classes Total market net sales, by class 2012-2018 $bn CAGR % 56 DPP-4 Insulin SGLT-2 Other2 +8% 50 24% 44 GLP-1 38 79%1 32 27 27% 5% -4% 2008 2010 2012 2014 2016 2018 1 CAGR for SGLT-2 is 2014-2018 2 Includes SUs (sulphonylureas), TZDs (tiazolidinediones), metf
Slide 60: We are present along the entire patient journey
We are present along the entire patient journey of a progressive disease Lifestyle Modifications1 Initial treatment Add on to met Multiple NIADs Add on to Insulin US2 1 Illustrative only. Intended to represent an example of common therapy progression and Current Target for physician use, not actual
Slide 61: Onglyza franchise grew globally at 59% vs 36% for DPP-4 class
Onglyza franchise grew globally at 59% vs 36% for DPP-4 class Onglyza family is consistently outperforming the market Value growth (%) 59 59 49 36 29 29 Onglyza DPP-4 class Global US EU 5 Source: IMS MIDAS Sales Data (Dec 2012) 61
Slide 62: US alliance team is stabilising Bydureon share
US alliance team is stabilising Bydureon share and increasing prescriber base Market share development Numbers of new prescribers Rx Share of GLP-1, Feb12-Feb13*, Percentage 4-week average* -2% +1.5% 511 380 NBRx NRx TRx Sep 12 Jan-Feb13 • AZ/BMS sales forces US is three times larger than Amylin Sal
Slide 63: Forxiga launched in 3 countries, US re-submission mid 2013
Forxiga - launched in 3 countries, re-submission in the US mid 2013, early positive signs Weekly sales data shows Launch and Reimbursement strong uptake status in other countries PDOT* volume, IMS sell out, number of weeks after launch Januvia • Launched in Germany, UK, Denmark Forxiga • Decision of
Slide 64: Considerable SGLT-2 opportunity in Japan
Considerable SGLT-2 opportunity in Japan NIAD Volume in Japan, NIAD 2012 Growth Rates (%) in Japan, 2012 PDOT (M) volume 949 72 62 17 DPP-4i GLP-1 DPP-4i GLP-1 Source: IMS Health MIDAS PDOT = Patient Days of Therapy NIAD = non insulin anti-diabetic 64
Slide 65: Activities to strengthen and accelerate our growth
Activities to strengthen and accelerate our growth Strengthening Simplify regimen Accelerate scientific leadership SAVOR First DPP-4 CV outcome study in Kombiglyze XR (US) Dual chamber pen Diabetes Komboglyze IR (EU) Saxagliptin + Dapagliflozin Exenatide once weekly DECLARE & once monthly Dapagliflo
Slide 66: Strengthening the AZ/BMS alliance
Strengthening the AZ/BMS alliance • One US commercial team • Integrated model: avoiding duplication of structures and drives synergies • Single team drives stronger leadership • Simplified decision making ROW • Under evaluation Source: Internal data 66
Slide 67: Upcoming major events in the next years
Upcoming major events in the next years Topline results from Estimated study SAVOR Mid-Year 2013 completion date for EXSCEL 2017 Forxiga/Metformin FDC FDA Filing 2H 2013 Forxiga Filing Japan 1Q 2013 Onglyza/Forxiga FDC Filing US, EU 2015 2012 2013 2014 2015 2016 2017 Forxiga Regulatory filings Filin
Slide 68: Summary
Summary • Diabetes is a huge and fast growing opportunity with over half a billion patients worldwide by 2030 • AZ/BMS Alliance uniquely poised with differentiated non-insulin anti-diabetic portfolio • Effective execution of our plan with further clinical data pending can accelerate our strong perfo
Slide 69: Emerging Markets
Emerging Markets Mark Mallon Executive Vice President, International 69
Slide 70: AZ Emerging Markets: A platform for success
AZ Emerging Markets – A platform for success 6th Russia fastest growing MNC ~$300 Million pharma player across Emerging Markets Turkey ~$250 Million China ~$6bn ~$1.5 Billion sales in Emerging Markets Mexico ~$240 Million S. Korea ~$240 Million Saudi Arabia ~$170 Million Brazil ~$500 Million Source:
Slide 71: A history of broad based, profitable growth
A history of broad based, profitable growth AZ Emerging Markets Net Sales ($bn, CER annual growth rate) +10% CER ($bn) 5.8 (’08-’12) 6 +19% Symbicort + 5 Crestor + +17% 4.3 Nexium 4 Other Primary 3 Care +6% 2 1.9 1 Specialty Care +9% 0 2004 2008 2012 AZ pre-R&D Symbicort Crestor Nexium operating mar
Slide 72: Aggressively addressing factors slowing growth
Aggressively addressing factors slowing growth China organization Factors impacting 2011 and 2012 growth: 1 stabilised – accelerating growth in the second half of 2012 • Changes in management and organization in China in 2011 • Supply issues globally and in India 2 Supply issues addressed in Sweden
Slide 73: Our ambition: high single digit growth platform
Our ambition – high single digit growth platform AZ Emerging Markets Quarterly Sales Growth Rates (% at CER) 8% 6% 4% 2% 0% Q1 2012 Q2 2012 Q3 2012 Q4 2012 Back on growth path since Q3 2012 Source: AZ internal data 73
Slide 74: With continued growth opportunities ahead
With continued growth opportunities ahead Disease Areas Segment Value CAGR% AZ Products 20121 2008-20122 Asthma/COPD $4.3bn +11.3% Diabetes $4.4bn +15.7% Hyperlipidaemia $4.7bn +12.2% ACS and Stroke $1.4bn +11.1% Notes: 1 Based on selected IMS ATC data in defined EM. 2 CAGR% at CER Source: IMS, inte
Slide 75: Evolving our strategy for continued success
Evolving our strategy for continued success Emerging Market priorities 2008 – 2012 Moving Forward Invest early in key markets Accelerate investment in Top 15 Build Share of Voice with Expand reach with Best in Class Sales Force multichannel capabilities Transform Market Access, Develop strong local
Slide 76: A case study in success: AstraZeneca China
A case study in success – AstraZeneca China US $m Headcount 5 of AZ’s top 7 brands are Category Leaders 1,600 4,500 CRESTOR and SYMBICORT fastest 1,200 growing in their class 3,000 BRILINTA and ONGLYZA approved 800 and ready for NRDL 1,500 AZ awarded “China’s Best Corporate 400 Citizen with Highest
Slide 77: AZ China accelerating growth in second half of 2012
AZ China accelerating growth in the second half of 2012 Growth % Total China 30 MNCs AZ 20 10 0 4Q09 4Q10 4Q11 4Q12 Source: IMS 77
Slide 78: A case study in success: AstraZeneca Russia
A case study in success – AstraZeneca Russia US $m Actions 2012/2013 +35% 320 Sales Sales Force 20% increase1 in Primary 280 Care Sales Force 240 Multichannel Launch of new Pharmacy 200 Marketing Sales Force 160 State of the art facility in Kaluga. Manufacturing 30+ products 120 Medical Affairs Firs
Slide 79: A case study in success: AstraZeneca Saudi Arabia
A case study in success – AstraZeneca Saudi Arabia US $m Actions 2012/2013 180 +39% Sales 160 Sales Force 23% increase1 in Sales Force 140 120 Affordability and market access 60% increase1 in KAM team 100 80 Broad Market 20% increase1 of targets and 60 Reach geographies 40 Integrated CV health progr
Slide 80: Building the capabilities to succeed with new products
Building the capabilities to succeed with new products Market Market Share % Share % 8% 7.3% 25% 25.2% Product Market Product Market 7% Share in B01AC Share in DPP-4 6% Class 20% Class 5% BRILINTA BRILINTA EFFIENT prasugrel 15% 4% 3% 2.3% 10% 2% 5% 1% 0% 0% Jun Jan Jun Jan Oct Jan Jun Dec 11 12 12 1
Slide 81: New AZ International operating unit
New AZ International operating unit – aligning the organization to meet the Emerging Market needs Marketing Operations International Operating Unit Regulatory Development 81
Slide 82: Emerging Markets: a platform for sustained growth
Emerging Markets – A platform for sustained growth High single digit growth through 2016 • Focus on AZ portfolio, in high growth disease areas • Accelerate investment in our Emerging Market capabilities - Focus on China and top 15 markets - Broaden reach through multichannel marketing - Transform Ma
Slide 83: Return to growth: Japan
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Slide 84: Japan: a key growth platform for AstraZeneca
Japan – a key growth platform for AstraZeneca Japan pharmaceutical market sales ($bn, CER annual growth, 2012 Fx-rate) • Favourable demographics: 36M people are 3.6% expected to be over age 65 in 2020 136 119 103 • Second largest pharmaceutical market, with steady growth 2008A 2012A 2016F • A legacy
Slide 85: Stable Oncology franchise and outgrowing the market in Primary Care
We have a stable Oncology franchise and outgrow the market in Primary Care CER annual growth rate AZ KK Net Sales (’00-’12) ($bn) Total Sales +8.6% 2.9 2.6 Primary +9.7% 2.0 Care 1.4 1.5 1.0 0.8 Specialty +7.7% Care 2000 2002 2004 2006 2008 2010 2012 Nexium Symbicort Crestor Other Primary Specialist
Slide 86: Recent track record of successful launches
Recent track record of successful launches with rapid share gain 40% 29.9% 30% No. 1 20% statin in value 10% Crestor Value Market Share 0% Jan-10 2010 Jan-11 Jul-10 2011 Jan-12 Jul-11 2012 Jul-12 50% 42.8% ~47% in 40% volume 30% dynamic 20% market Symbicort Value Market Share share 1 10% 0% Jan-10 A
Slide 87: Nexium achieving a rapid share gain
Nexium achieving a rapid share gain in December $3.4bn market size and growing by 3.1% in volume (CAGR ’08-’12) Leadership Volume market share trend (%) in new Value market share trend (%) patients1 14.6% 15 15 10 9.7% 10 5 5 0 0 Copyright © 2013 IMS Japan K.K. All rights reserved Source: IMS JPM Ja
Slide 88: By 2016 ~60% of revenue from new products
By 2016 we expect ~60% of revenue to come from new / recently launched products Recent launches Launched Upcoming launches Filing timing 2005 1Q 2013 2010 2Q 20132 1 2010 2Q 2013 2011 CAZ-AVI 2H 2014 2011 2015 2012 Lesinurad 2017 Source: AstraZeneca Annual Reports and Q412 Press Release 1 Transition
Slide 89: Return to Growth: Roadmap
Return to Growth: Roadmap Immediate priorities Mid-term goals Long term aspiration • Accelerate Performance • Best in class OAP incl. • Broaden beyond OAP BRILINTA • Leadership in ACS PAD, 3yrs treatment, Stroke (tbc) • Maximise portfolio • Launch combinations • Leverage potential Diabetes (DDP-4, S
Slide 90: AstraZeneca Investor Day 2013
AstraZeneca Investor Day 2013 90
Slide 91: Achieving scientific leadership
Achieving scientific leadership Briggs W. Morrison Executive Vice President, Global Medicines Development Chief Medical Officer 91
Slide 92: Agenda
Agenda R&D Overview Phase III portfolio Oncology Respiratory & Inflammation 92
Slide 93: 93
93
Slide 94: Our path to scientific leadership
Our path to scientific leadership Accelerate CAT & MedImmune R&D Transformation Prioritise acquisitions started Transform 2006 / 2007 2010 2013 94
Slide 95: Our portfolio is poised to deliver
Our portfolio is poised to deliver Phase I Phase II Phase III/Registration 26 NMEs 21 NMEs 6 NMEs Small Molecule Large Molecule Small Molecule Large Molecule Small Molecule Large Molecule AZD2014 moxetumomab* AZD4547 MEDI-551* lesinurad brodalumab* volitinib* MEDI0639* olaparib tremelimumab fostamat
Slide 96: How we will measure our progress
How we will measure our progress Phase III & Registration NME Near term pipeline volume (#) • In 2013-2014 we anticipate ~5-7 NME 11+ Phase III starts • 10 potential NME submission opportunities between now and 2016 • By 2016 we will be at the target volume in Phase III and Registration 9-10 8 6 201
Slide 97: Anticipate ~5-7 NME Phase III starts
Anticipate ~5-7 NME Phase III starts 2013 2014 benralizumab AZD6765 ATM AVI asthma depression serious infections olaparib sifalimumab/MEDI-546 AZD4547 solid tumours systemic lupus erythematosus gastric cancer moxetumomab pasudotox mavrilimumab AZD5069 hairy cell leukaemia rheumatoid arthritis asthma
Slide 98: Valuing our portfolio
Legend Valuing our portfolio Phase III Phase II Phase I AZD5069 benralizumab brodalumab1 (2015) Potential peak year sales fostamatinib (2013) lesinurad (2014) MEDI-551 naloxegol (2013) for New Medicines Over olaparib (2013) $1B selumetinib sifalimumab / MEDI-546 tralokinumab AZD4547 ATM AVI CAZ AVI
Slide 99: Deliver the portfolio and productivity improvements
We will deliver the portfolio and deliver productivity improvements Drivers R&D Investment by stage 2013-2016 (%) • Prioritise our projects 100% • Accelerate and simplify our best programmes Late 40% Development 47% • Focus on key disease areas Early 38% Development 32% Discovery 22% 21% 2013 2016 P
Slide 100: Agenda
Agenda R&D Overview Phase III portfolio Oncology Respiratory & Inflammation 100
Slide 101: Current Phase III and Registration pipeline
Current Phase III and Registration pipeline 6 CAZ AVI* serious infections fostamatinib* rheumatoid arthritis lesinurad* gout1 brodalumab* psoriasis naloxegol* opioid-induced constipation NMEs metreleptin lipodystrophy 10 Bydureon Dual Chamber Pen IRESSA treatment beyond progression Forxiga triple th
Slide 102: Naloxegol moves to regulatory submission in Q3 2013
Naloxegol moves to regulatory submission in Q3 2013 Once a day oral, peripherally acting, Positioning μ-opioid receptor antagonist • >69M patients taking opioids for chronic pain • 40-50% of patients (28-35M) develop opioid induced constipation (OIC) • Less than half get OIC relief with current trea
Slide 103: Fostamatinib on track to report Phase III data in Q2 2013
Fostamatinib on track to report Phase III data in Q2 2013 Novel oral kinase inhibitor OSKIRA Clinical Programme with selectivity for SYK • ~$14bn RA market expected to reach $18bn in 2022 • Significant unmet need in TNF and DMARD inadequate responders • On track to report during Q2 2013 and file in
Slide 104: Lesinurad is an add-on therapy to XO inhibitors
Lesinurad is an add-on therapy to XO inhibitors Asymptomatic Gout treated 2nd line hyperuricaemia Diagnosed Gout with chronic Gout Gout therapy Severe disease 57M 15.3M 4-6M 10.0M Allopurinol is Acute Treatment Limited options No treatment most common Krystexxa® with colchicine, today. Increase firs
Slide 105: Lesinurad filing in H2 2014
Lesinurad filing in H2 2014 Positioning 4 week Phase IIB data • Majority of the 15.3M diagnosed1 (10M treated with chronic therapy) gout patients 80 74% are inefficient excretors of sUA 63% 60 • 40% to 60% (4-6M) of patients fail to achieve sUA targets (<6mg/dL)2 on current 40 25% SOC which only dec
Slide 106: CAZ AVI filing in H2 2014
CAZ AVI filing in H2 2014 Increasing cephalosporin resistance is Positioning leading to a serious public health issue • Treating hospitalised patients with intra- abdominal infections (cIAI), urinary tract < 1% infections (cUTI), hospital acquired 1 to < 5% pneumonia (HAP), or ventilator acquired 5
Slide 107: Brodalumab on track to report in 2014
Brodalumab on track to report in 2014 A targeted monoclonal antibody Phase II psoriasis OLE study that binds IL-17R • Three Phase III studies in moderate to 100 with PASI 75/90/100 (%) severe plaque psoriasis on track Proportion of subjects 80 • Psoriatic arthritis: Phase II completed, 60 efficacy r
Slide 108: Forxiga: strong efficacy in key measures
Forxiga: strong efficacy in key measures Mean change from baseline Successful progress to Week 24 LOCF HbA1c Body weight Systolic blood • DECLARE, our dapagliflozin CV Outcomes (%) (kg) pressure (mmHg) Trial, scheduled to initiate in April 2013 • -0.90 MAA for dapaglifozin/metformin FDC -0.30 -0.20
Slide 109: Productivity through simplified study design and flawless execution
Productivity through simplified study design andPhase III portfolio flawless execution Simplified design Saxagliptin – SAVOR Study – flawless execution • Study design will evaluate the efficacy and safety of saxagliptin across a broad May March Dec spectrum of T2DM patients 2010 2011 2011 Top line •
Slide 110: On track to achieving scientific leadership
On track to achieving scientific leadership Growing Phase III A prioritised portfolio Unique combination Improved productivity of small molecules, for the same budget biologics, immuno- Quality Phase II therapies and protein portfolio Distinctive science engineering 110
Slide 111: Agenda
Agenda R&D Overview Phase III portfolio Oncology Respiratory & Inflammation 111
Slide 112: Oncology
Oncology Susan Galbraith Head of Innovative Medicines Oncology iMed 112
Slide 113: Key messages
Key messages Significant Acceleration of olaparib, selumetinib and moxetumomab pasudotox progression Advanced early portfolio with evidence of anti-tumour activity Novel science and Robust, innovative early-stage opportunities, including differentiated combinations small molecule and immune-mediated
Slide 114: Strong pipeline provides foundation for success
Strong pipeline provides foundation for success Phase I Phase II On market/lifecycle management 12 NMEs 6 NMEs 3 assets Small Molecule Large Molecule Small Molecule Large Molecule Small Molecule AZD1208 MEDI-565* AZD4547 MEDI-551* Caprelsa Faslodex Iressa (PIM) (CEA BiTE) (FGFR) (CD19) AZD2014 MEDI0
Slide 115: Combinations will anchor our scientific leadership
Combinations will anchor our scientific leadership AZ uniquely positioned to combine agents within and between key scientific mechanisms Enhance immune Target key tumour drivers and resistance + Tip cancer cells into cell death + response to improve overall survival programmes highlighted today: • A
Slide 116: Accelerating olaparib and filing in 2013
1 Accelerating olaparib and filing in 2013 Leading PARP inhibitor Mechanism of action • Exciting updates for ASCO PARP olaparib • 2013 milestones (BRCAm ovarian) – potential EMA filing, Phase III trial start • Initial opportunity – ~10K patients with BRCAm ovarian cancer1 • Multiple opportunities be
Slide 117: Significant opportunity beyond ovarian cancer
1 Significant opportunity beyond ovarian cancer Potential Trial starts in 2013 Beyond ovarian • Five Phase III in ovarian, gastric and breast Gastric • Three Phase II in lung Advanced BRCAm BRCAm ovarian • Two Phase IB in prostate DDR- breast impaired cancers Early Lung TN BRCAm tumours breast Other
Slide 118: Strong DNA damage response pipeline
1 Strong DNA damage response (DDR) pipeline First-in-class approaches to exploit tumours’ inherent DDR dependencies AZD6738 (ATR inh.) Olaparib (PARP inh.) Stalled replication fork signalling Single-strand break repair; Phase I start in 2013 regulator of ETS family transcription factors ATM (protein
Slide 119: Accelerating multiple opportunities with selumetinib
2 Accelerating multiple opportunities with selumetinib Starting pivotal trials in 2013 Selumetinib in MEK-driven tumours • Effective and well-tolerated as Thyroid GI cancers monotherapy • Induces ‘re-differentiation’ in thyroid KRASm NSCLC cancer • Active in combination with chemo in multiple tumour
Slide 120: Differentiated by combinability with chemo in NSCLC
2 Differentiated by combinability with chemo in NSCLC Active in combination with Evidence in 2nd-line KRASm NSCLC2 chemotherapy Selumetinib + Docetaxel3 Placebo + Docetaxel3 (N=43) (N=40) • High and durable response Response 16 (37%) 0 rate in segment with poor Non-response 27 (63%) 40 (100%) respon
Slide 121: Best-in-class opportunity: selumetinib + chemotherapy
2 Best-in-class opportunity: selumetinib + chemotherapy Selumetinib is combinable at monotherapy MTD, and achieves preclinical target concentration; trametinib combination requires lower dose Maximum tolerated dose (MTD) Selumetinib Monotherapy1 75 mg BD Combination with docetaxel2 75 mg BD Combinat
Slide 122: Moxetumomab pasudotox is a novel armed antibody
3 Moxetumomab pasudotox is a novel armed antibody First-in-class Unique mechanism of action Moxetumomab • Novel protein synthesis inhibitor pasudotox payload • Active in high unmet need setting: ~6K relapsed patients in acute lymphoblastic leukaemia and hairy cell leukaemia1 • Accelerated developmen
Slide 123: Robust, durable response to moxetumomab pasudotox
3 Robust, durable response to moxetumomab pasudotox Paediatric ALL Phase I Data1 Hairy Cell Leukaemia Phase I data • 88% overall response rate and 55% complete response (CR)2 • Durability of response greater than two years3 • Majority of CRs were molecular CRs3 1 Wayne AS, et al. Blood (ASH Annual M
Slide 124: AZD4547 is a first-in-class FGFR inhibitor
4 AZD4547 is a first-in-class FGFR inhibitor Several exciting clinical FGFR2-amplified metastatic GE junction opportunities adenocarcinoma2 • Clinical activity (one PR, two PET responses) in FGFR- amplified tumours GE junction Liver Liver (CT) 60 mm • Initial opportunity in FGFR- amplified gastric c
Slide 125: MEDI-551 is potential best-in-class in B cell lymphomas
5 MEDI-551 is potential best-in-class in B cell lymphomas Enhanced ADCC Chemotherapy-refractory DLBCL2 • High-affinity mAb with enhanced antibody- dependent cell-mediated cytotoxicity Pre-Rx PR after 4 cycles (ADCC) against broadly expressed CD19 target • Opportunity and biological rationale in ~40K
Slide 126: Combinations will anchor our scientific leadership
Combinations will anchor our scientific leadership AZ uniquely positioned to combine agents within and between key scientific mechanisms Enhance immune Target key tumour drivers and resistance + Tip cancer cells into cell death + response to improve overall survival programmes highlighted today: • A
Slide 127: Broad IMT-C portfolio well-suited for combinations
Broad IMT-C portfolio well-suited for combinations MEDI4736 Tremelimumab MEDI6469 Anti-PD-L1 mAb Anti-CTLA-4 mAb mOX40 agonist mAb • Phase I in solid tumours • Phase II in solid tumours • Murine mAb in Phase I in • Validated pathway in • Validated pathway solid tumours multiple tumour types • Safety
Slide 128: Strong potential for proprietary combination
Strong potential for proprietary combination Tremelimumab (CTLA-4) and Colorectal cancer murine tumour model1 MEDI4736 (PD-L1) combination PD‐L1 mAb CTLA‐4 mAb • Tumour volume (mm3) CTLA-4 and PD-L1 blockade are Tumour volume (mm3) biologically distinct • Combination improves anti-tumour activity in
Slide 129: IMT-C development plan focused on proprietary combinations
IMT-C development plan focused on novel, proprietary combination opportunities 2013 2014 2015 2H 1H 2H 1H 2H Monotherapy in new indications with favourable immune signature Novel IMT-C combinations: • MEDI4736 (PD-L1) + Tremelimumab • CTLA-4 + mOX40 Registration enabling Other proprietary IMT-C comb
Slide 130: Newsflow highlights of programmes reviewed
Newsflow highlights of programmes reviewed Timeline Asset Indication Clinical data and potential milestones 2013 AZD4547 breast Phase II start1 MEDI4736 multiple Combination trials start moxetumomab pasudotox HCL Phase III start moxetumomab pasudotox paediatric ALL Phase II start1 olaparib BRCAm ova
Slide 131: Phase I and II programmes not reviewed in depth today
Phase I and II programmes not reviewed in depth today Asset Mechanism Phase Disease area(s) fostamatinib SYK II Diffuse large B-cell lymphoma MEDI-573 IGF II Breast cancer AZD1208 PIM I Acute myelogenous leukaemia, solid tumours AZD2014 TOR I Breast cancer AZD5363 AKT I Breast cancer, prostate cance
Slide 132: Key messages
Key messages Significant Acceleration of olaparib, selumetinib and moxetumomab pasudotox progression Advanced early portfolio with evidence of anti-tumour activity Novel science and Robust, innovative early-stage opportunities, including differentiated combinations small molecule and immune-mediated
Slide 133: Respiratory & Inflammation
Respiratory & Inflammation Bing Yao Head, Respiratory, Inflammation & Autoimmune iMed, MedImmune 133
Slide 134: Key messages
Key messages Strong Strong heritage including Symbicort which continues to provide respiratory clinically important improvement in asthma and COPD franchise Robust pipeline (20 NMEs) in Respiratory and Immunology with Robust pipeline competitive science and strong partnerships Accelerated Great pipe
Slide 135: Significant unmet needs in asthma and COPD
Significant unmet needs and opportunity for growth in both asthma and COPD Asthma COPD Number of active patients (G7 markets, M)1 Number of active patients (G7 markets, M)2 52 54 1.7M severe, inadequately 38 controlled despite 33 compliance 20 11 14 Diagnosed Diagnosed prevalence Treated Treated pat
Slide 136: Symbicort well positioned in both asthma and COPD
Symbicort well positioned in both asthma and COPD GINA (Asthma): Step and treatment1 GOLD (COPD): Patient Segments and treatment2 Add: Low dose oral steroid or Xolair 5 4 Very severe ICS + LABA and/or LAMA (~1.7m patients) Add: Medium/High ICS/LABA or 4 ICS/LABA+LTRA 3 Severe ICS+LABA or LAMA Add: L
Slide 137: Symbicort: Unique differentiation in COPD
Symbicort: Unique differentiation in COPD 62% reduction of 27% fewer moderate to severe moderate/severe exacerbations exacerbations than patients treated with vs. tiotropium FDC salmeterol + fluticasone3 Symbicort 1.09 Symbicort + tiotropium salmeterol + Placebo 0.80 fluticasone FDC + tiotropium CLI
Slide 138: Symbicort continues to demonstrate strong growth
Symbicort continues to demonstrate strong growth in US, Japan and Emerging Markets $m, CER annual growth CER CAGR (2008-2012) 3,194 9% Other 45% China 2,004 45%1 Japan 41% US 3% W Europe 2008 2012 Note: 1. 2010-2012 annual growth rate Source: AZ internal 138
Slide 139: Focused pipeline across small molecules and biologics
Focused pipeline across small molecules and biologics Phase I Phase II Phase III / Registration Lifecycle management 7 NMEs 10 NMEs 3 NMEs Small Molecule Large Molecule Small Molecule Large Molecule Small Molecule Large Molecule Small Molecule AZD7594* MEDI2070* AZD2115* benralizumab* fostamatinib*
Slide 140: Personalised approaches for severe asthmatic segments
Complementary personalised approaches for different severe asthmatic segments Asthma is a highly heterogeneous disease • Developing understanding of Neutrophil- tralokinumab underlying cause high (IL-13) AZD5069 TH2- • Studying patient sub-types (CXCR2) driven • Developing diagnostics • Tailoring th
Slide 141: Benralizumab is in development for severe asthma
1 Benralizumab is in development for severe asthma Eosinophilic targeted asthma Mechanism of Action: anti-IL-5Rα • Asthmatics with eosinophilia represent ~40-60% of severe asthmatics • Eosinophil count associated with exacerbation • Binding with high affinity to IL-5Rα depletes eosinophils Programme
Slide 142: Benralizumab depletes eosinophils and reduces exacerbations
1 Benralizumab potently depletes eosinophils and reduces exacerbations Phase I – Eosinophil depletion in Phase IIA high risk asthma periphery and lung2 0.4 60 Dose (mg/kg) 0.0003 (n=5) 50 Blood EOS (x10-3) 0.3 0.003 (n=6) Exacerbations 0.03 (n=6) 40 0.3 0.1 (n=6) 30 0.3 (n=6) 1 (n=9) 20 0.0 3 (n=6 S
Slide 143: Benralizumab offers a unique mechanism of action
1 Benralizumab offers an unique mechanism of action for eosinophil positive patients Differentiation Development plan • Receptor vs. ligand approach Phase IIB asthma • Primary endpoint in reduction in annual • Q8 week subcutaneous dosing asthma exacerbation rate • Complete eosinophil depletion with
Slide 144: Tralokinumab is targeted against a cytokine central to asthma
2 Tralokinumab is targeted against a cytokine central to asthma Mechanism of Action: anti-IL-13 • Target severe, inadequately controlled asthma • Tralokinumab a fully human antibody targeting IL-13 • Key cytokine involved in many aspects of asthma • Validated target from pre-clinical and clinical st
Slide 145: Tralokinumab has demonstrated clinical response
2 Tralokinumab has demonstrated clinical response Change in baseline in lung function Development plan Placebo (n=42) Follow-Up Period Phase IIB asthma Tralokinumab Combined (n=144) • Assesses exacerbation reduction vs. placebo in severe uncontrolled asthma • Evaluating spectrum of blood and serum b
Slide 146: AZD5069 is a potential first in class oral therapy
3 AZD5069 is a potential first in class oral therapy for severe asthma Mechanism of Action: CXCR2 antagonist Neutrophil • CXCR2 expressed on neutrophils Bone marrow and other cell types • Implicated in neutrophil recruitment, migration, activation, and goblet cell CXCR2 hyperplasia leading to pulmon
Slide 147: AZD5069 reduces neutrophils in airway
3 AZD5069 reduces neutrophils in airway AZD5069 reduces neutrophils in AZD5069 development plan airway of bronchiectasis patients Phase IIB in uncontrolled persistent asthma 8 69 % reduction patients Sputum neutrophils (-106/g) 7 of sputum 6 neutrophils • Explore effect on exacerbations compared to
Slide 148: Combinations: next wave of innovation for respiratory diseases
Combinations: The next wave of innovation for respiratory diseases Best Anti- AZD5423 Inflammatory: SGRM COPD Asthma Inhaled Fixed Dose Combination Best Broncho- Novel Dry dilator: Powder Inhaler MABA AZD2115 Inhaled Fixed Dose combination of SGRM with bi-functional bronchodilator (MABA) gives ’trip
Slide 149: AZD5423 non-steroidal SGRM
4 AZD5423 (COPD/Phase IIA) – a non-steroidal Selective Glucocorticoid Receptor Modulator (SGRM) SGRM concept Allergen challenge data LAR - 100 • Best-in-class opportunity in primary care FEV1 3-7h after AC setting Budesonide 2x200ug AZD5423 75ug • Potential for ICS-like (or better) efficacy LAR(max)
Slide 150: AZD2115 MABA with dual activity in one molecule
5 AZD2115 (COPD/Phase IIA) – Engineering balanced pharmacology with dual activity in one molecule Mechanism of Action: MABA Bronchodilation in COPD patients Dual mechanism LABA LABA/LAMA Change in FEV1 from baseline (ml)* β2 + M3 β2 linker M3 . b a β2 agonist M3 antagonist β2 agonist / M3 antagonist
Slide 151: Additional Phase I and II programmes
Additional Phase I and II programmes Disease Disease area Asset Mechanism Phase area Asset Mechanism Phase COPD AZD7594 iSGRM I Crohn’s MEDI2070 IL-23 I Disease AZD7624 ip38 I MEDI7183 α4β7 II SLE MEDI5872 B7RP1 I benralizumab IL-5Rα II sifalimumab IFNα II MEDI8968 IL1-R II MEDI-546 IFNαR II Asthma
Slide 152: Clinical data and potential programme starts
Clinical data and potential programme starts Timeline Asset Indication Clinical data and potential milestones 2013 AZD5423 COPD Phase II data benralizumab asthma Phase II data, Phase III start benralizumab COPD Phase II data fostamatinib RA Phase III data, Submission MEDI-546 SLE Phase II data sifal
Slide 153: Key messages
Key messages Strong Strong heritage including Symbicort which continues to provide respiratory clinically important improvement in asthma and COPD franchise Robust pipeline (20 NMEs) in Respiratory and Immunology with Robust pipeline competitive science and strong partnerships Accelerated Great pipe
Slide 154: On track to achieving scientific leadership
On track to achieving scientific leadership Growing Phase III A prioritised portfolio Unique combination Improved productivity of small molecules, for the same budget biologics, immuno- Quality Phase II therapies and protein portfolio Distinctive science engineering 154
Slide 155: AstraZeneca Investor Day 2013
AstraZeneca Investor Day 2013 155
Slide 156: Our Financial Objectives and Capital Allocation Policy
Our Financial Objectives and Capital Allocation Policy Simon Lowth Chief Financial Officer 156
Slide 157: Our financial objectives and capital allocation policy
Our financial objectives and capital allocation policy Drive Reinvest for Maintain Fund on-market growth and progressive value-enhancing value value dividend business development & acquisitions 1 2 3 Maintain strong balance sheet 4 157
Slide 158: Drive value from our on-market franchises
Drive value from our on-market franchises Drive on-market value • Invest in on-market growth platforms to return to growth • Maintain sector-leading productivity to create 1 investment headroom and flexible cost base 158
Slide 159: Invest in on-market growth platforms to return to growth
Illustrative Invest in on-market growth platforms to return to growth Declining major brands Revenue Internal Growth Platforms Established portfolio Time 159
Slide 160: Significant restructuring undertaken to drive productivity
Significant restructuring has been undertaken to drive productivity and reshape business Headcount Costs Annual benefits $m $m Phase 1 (2007-09) 12,600 2,506 2,400 Phase 2 (2010-11) 8,860 2,102 1,900 Phase 3 (2012-14) 7,300 2,100 1,600 Announced 2 Feb 2012 Implemented by 6,300 1,819 1,300 31 Dec 201
Slide 161: Half of restructuring savings reinvested for growth
Half of the restructuring savings have been reinvested to drive future growth Net headcount development 2006-2012 Emerging Operations SG&A R&D Other R&D Markets Other 0 (5,000) -15,100 Net (10,000) -27,000 (15,000) Gross (20,000) (25,000) (30,000) 161
Slide 162: We have improved core pre-R&D margins significantly
We have improved core pre-R&D margins significantly 55% 42% Core pre-R&D Margin 2002-06 2012 Revenue $22bn $28bn CoGS 23% 18% SG&A 35% 30% 162
Slide 163: Goal to sustain core pre-R&D margins of 48-52%
Our goal is to sustain core pre-R&D margins in the range of 48-52% 55% 48-52% 42% Core pre-R&D Margin 2002-06 2012 Goal 163 163
Slide 164: Restructuring delivers science-led site strategy
Restructuring delivers our science-led site strategy and further productivity improvement Total cost Cash Non-cash Roles Roles Benefits $m $m $m eliminated relocated $m Remaining 380 380 1,150 300 Phase 3 Footprint 1,400 800 600 1,600 2,500 190 Additional 520 520 2,300 310 SG&A Total Phase 4 2,300 1
Slide 165: Restructuring delivers science-led site strategy by function
Restructuring delivers our science-led site strategy and further productivity improvement Total cost Cash Non-cash Roles Roles Benefits $m $m $m eliminated relocated $m R&D 1,380 780 600 1,470 1,870 SG&A 790 790 - 3,020 630 COGS 130 130 - 560 - Total 2,300 1,700 600 5,050 2,500 800 165
Slide 166: Reinvest for growth and value
Reinvest for growth and value Drive Reinvest on-market for growth value and value 48-52% core pre-R&D margin 2 166
Slide 167: Reinvest up to 50% of post-tax, pre-R&D on-market cashflows
Our goal is to reinvest up to 50% of our post-tax, pre-R&D on-market cashflows to drive future growth and value Develop science and progress our In-house R&D pipeline through internal R&D Reinvest up to 50% Business Science and product collaborations, post-tax, pre-R&D development partnering and in-
Slide 168: Maintain progressive dividend policy
Maintain progressive dividend policy Drive Reinvest for Maintain on-market growth and progressive value Reinvest value for Maintain dividend growth and Commitment to progressive value hold or grow dividend dividend per share policy with target cover of 3 Reinvest up to 48-52% core 50% of on- 2x Core
Slide 169: Pursue value-enhancing business development and acquisitions
Pursue value-enhancing business development and acquisitions Drive Reinvest Maintain Fund on-market for growth progressive value-enhancing value Reinvest and value Maintain dividend business for growth progressive development and value dividend & acquisitions policy 3 4 Reinvest up to 48-52% core 50
Slide 170: Accelerate growth through larger scale business development
We will seek to accelerate growth through larger scale business development and bolt-on acquisitions • Research • Larger scale collaborations product in-licensing & • Prioritised to Growth Platforms • Smaller scale partnerships and Core TAs product in-licensing & • Bolt-on • ROI > WACC partnerships
Slide 171: Our financial objectives and capital allocation policy
Our financial objectives and capital allocation policy Drive Reinvest for Maintain Fund on-market growth and progressive value-enhancing value value Maintain dividend business progressive development dividend & acquisitions policy Reinvest up to 48-52% core 50% of on- Hold or Grow Strategically pre-
Slide 172: Our financial objectives and capital allocation policy
Our financial objectives and capital allocation policy Drive Reinvest for Maintain Fund Maintain on-market growth and progressive value-enhancing value value progressive Maintain dividend business dividend progressive development policy dividend & acquisitions policy Reinvest up to 48-52% core 50% o
Slide 173: Innovation & Growth: Closing comments
Innovation & Growth Closing comments Pascal Soriot Chief Executive Officer 173
Slide 174: A bold ambition with 3 priorities and clear choices
A bold ambition with 3 priorities and clear choices Achieve 1 Return 2 Be a great 3 scientific to growth place to work leadership 174
Slide 175: Achieve scientific leadership: clear choices
A bold ambition with 3 priorities and clear choices Achieve 1 FOCUS on distinctive science in 3 core TAs PRIORITISE & ACCELERATE our pipeline scientific leadership TRANSFORM our innovation culture & model 175
Slide 176: Return to growth: clear choices
A bold ambition with 3 priorities and clear choices Return 2 FOCUS on key growth platforms ACCELERATE through business development to growth TRANSFORM through specialty care / biologics 176
Slide 177: Be a great place to work: clear choices
A bold ambition with 3 priorities and clear choices Be a great 3 FOCUS on simplification of our business DRIVE continued productivity improvements place to work EVOLVE our culture 177
Slide 178: Our journey – what you can expect
Our journey – what you can expect 178
Slide 179: How will we measure success?
How will we measure success? A journey with three time horizons Immediate priorities Mid-term goals Long-term aspiration 179
Slide 180: How will we measure success? 2013-2014
How will we measure success? A journey with three time horizons 2013-2014 Immediate priorities Mid-term goals Long-term aspiration • BRILINTA, Diabetes, Emerging Markets • 5-7 projects into phase III by end of 2014 • Business development 180
Slide 181: How will we measure success? 2015-2016
How will we measure success? A journey with three time horizons 2013-2014 2015-2016 Immediate priorities Mid-term goals Long-term aspiration • BRILINTA, Diabetes, and Emerging Markets • Increase Phase III pipeline by 2016 with potential to double • 1+ NME launches per year • Business development 181
Slide 182: How will we measure success? 2017-2020
How will we measure success? A journey with three time horizons 2013-2014 2015-2016 2017-2020 Immediate priorities Mid-term goals Long-term aspiration • Sustainable growth – beating today’s consensus • Scientific leadership • 2 NMEs per year sustainably 182
Slide 183: We will measure our progress against key metrics
We will measure our progress against key metrics Scientific Return to Financials leadership growth • NME approvals • BRILINTA sales • Total return to shareholders • Major LCM approvals • Diabetes sales • Cashflow • Phase III NME volume • Respiratory sales • PYS for approvals • Emerging Market sales
Slide 184: Our strategy
Our strategy Differentiated strategy Re-focused for delivery Pure play innovation/science strategy Refocused efforts on 3 core TAs, resources combined with global commercial scale and BD/M&A efforts prioritised for growth and innovation Growth levers Building for sustainability Internal grow
Slide 185: AstraZeneca Investor Day 2013
AstraZeneca Investor Day 2013 185
Slide 186: Key planning milestones
Key planning milestones EXSCEL SAVOR Mid-Year 2013 DECLARE Symbicort BAI (US) Onglyza/ Forxiga FDC Forxiga US FDA Re-filing mid 2013 2013 2014 2015 2016 2017 Bydureon dual chamber EUCLID PEGASUS pen: US filing 3Q 2013 2013 2014 2015 • naloxegol Q3 • lesinurad • brodalumab • fostamatinib Q4 • CAZ AVI