Astrazeneca Plc · LSE:AZN
Astrazeneca — FY2000 Earnings Presentation
24 slides from Astrazeneca's earnings presentation, 2001
Slide 1: Full Year Results 2000
A Full Year Results 2000 A Dr Tom McKillop Chief Executive Officer Page 1
Slide 2: Business performance summary
Business performance summary b Purest play pharmaceutical business in peer group ✦ Syngenta successfully created November 2000 A Full Year Results summary Continuing (excl. Agrochemicals) Full Year Constant 2000 Currency $m % Sales 15,804 +8 Operating Profit 3,984 +14 EPS $1.64 +18 A Page 2
Slide 3: Business performance summary and pipeline progress
Business performance summary b Purest play pharmaceutical business in peer group ✦ Syngenta successfully created November 2000 b Good sales and profit growth b Synergy programme ahead of target ✦ $650m for 2000 A Continued pipeline progress Viozan™ Nexium® Faslodex™ Symbicort® Crestor™ Iressa™ ODTI*
Slide 4: Sales by Therapeutic Area
Sales by Therapeutic Area FY 2000 % CER $m growth GI 6,322 +9 Cardiovascular 3,477 +6 Respiratory 1,372 +10 Oncology 1,929 +12 Specialist/Hospital 2,598 +5 A Growth products $m % Growth (CER) Atacand® 293 +82 Arimidex® 156 +19 Casodex® 433 +31 Seroquel® 424 +85 Zomig® 237 +31 Total 1,543 +50 A Page
Slide 5: GI franchise: Losec/Prilosec and Nexium
GI franchise: Losec®/Prilosec® Sales where Losec® substance patent expired 1999 B Sales growth +9% CER 100% Losec® 87% B Losec® sales 80% maintained where Zantac® substance patent 60% 62% expired 40% B Prilosec® paediatric data submitted to 20% FDA B Long term Expiry +1 +2 +3 +4 +5 +6 treatment appr
Slide 6: Nexium: UK and Germany launch
Nexium®: UK launch Cumulative Rxs 100,000 80,000 60,000 40,000 20,000 Avandia® Lipitor® Vioxx® Viagra® Seretide Nexium® Accuhaler® Source: Taylor Nelson Sofres plc, Scriptcount data (up to week 19) A Nexium®: Germany launch Sales, DEMm 16 Lipitor® 14 12 Vioxx® Seretide® 10 Nexium® 8 6 4 Celebrex® 2
Slide 7: GI franchise: Nexium
Nexium®: UK and Germany Rx source data Other PPIs* 53% Losec® Switched 47% 20% New 47% Repeat 33% Source: IMS Health, November 2000, A based on a sample of 533 Rx *Other PPIs include generic omeprazole in Germany GI franchise: Nexium® b Launched in nine European markets b 20 launches planned in 2001
Slide 8: Cardiovascular
Cardiovascular b Atacand® ✦ sales up 82% ✦ roll-out of Atacand® Plus / Atacand® HCT b Seloken® / Toprol-XL® ✦ US CHF approval received b Zestril® ✦ US Rx growth 10% A Zestril® US share holds firm 30 25 Zestril® % TRx share 20 15 10 enalapril 5 Vasotec® Mar-00 Jul-00 Dec-00 Dec-99 Jan-00 Feb-00 May-0
Slide 9: Cardiovascular and Respiratory
Cardiovascular b Atacand® ✦ sales up 82% ✦ roll-out of Atacand® Plus / Atacand® HCT b Seloken® / Toprol-XL® ✦ US CHF approval received b Zestril® ✦ US Rx growth 10% b Crestor™ ✦ Phase III studies at ACC (March 2001) A Respiratory b Pulmicort® ✦ US Turbuhaler® Rx up 40% ✦ successful launch of Respule
Slide 10: Respiratory: Symbicort launch uptake in Sweden
Symbicort® launch uptake in Sweden Seretide® Symbicort® Sales 1 2 3 4 5 6 Months on market Source: Läkemedelsindustriföreningen, LIF A Respiratory b Pulmicort® ✦ US Turbuhaler® Rx up 40% ✦ successful launch of Respules® b Rhinocort® Aqua® ✦ successful US launch b Symbicort® ✦ first launch Sweden Aug
Slide 11: Oncology
Oncology b Arimidex® ✦ roll-out of 1st line indication ✦ launched in Japan last week ✦ ATAC results expected by year end b Casodex® ✦ sales up 31% to $433m ✦ worldwide market leading anti-androgen ✦ monotherapy in 9 markets ✦ EPC submissions during 2001 A Oncology b Faslodex® ✦ novel class ✦ submiss
Slide 12: CNS: Zomig triptan performance
CNS b Zomig® ✦ leading second generation triptan A Triptan performance summary 12000 10000 Triptan RX (000's) 8000 Zomig® 6000 rizatriptan naratriptan 4000 sumatriptan 2000 MAT Q4 95 MAT Q4 97 MAT Q4 98 MAT Q4 99 MAT Q4 96 MAT Q3 00 A Source: IMS Health MIDAS MAT Q3/00 Markets = USA, UK, Canada, Ger
Slide 13: CNS: Zomig and Seroquel
Zomig® Rapimelt® sales take-off in Germany Zomig® Rapimelt® rizatriptan melt Sales 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Months Post-Launch Source : IMS Health (Monthly Data Nov 2000) Constant Exchange Rates A CNS b Zomig® ✦ leading second generation triptan ✦ Rapimelt® launched in 14 markets b Seroqu
Slide 14: Seroquel take-off in Germany; Japan opportunity
Seroquel® sales take-off in Germany olanzapine Sales risperidone Seroquel® 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Months post-launch Source: IMS Health (Monthly Data Dec 2000) Pharmacy Only, Local Currency A Japan: growth opportunity b 4 launches in last week: ✦ Seroquel® ✦ A
Slide 15: Products for the future
Products for the future Launched Symbicort® Nexium® in 2000 Faslodex™ Crestor™ Global filing in 2001 Iressa™ Viozan™ A A Jon Symonds Chief Financial Officer Page 15
Slide 16: Financial review
Financial review b 2000 annual results ✦ healthcare highlights ✦ operating margins ✦ currency trends ✦ cash flow b 2001 targets A Healthcare highlights 25% 22% 18% 14% Q4 13% FY 8% Sales Operating profit Group EPS A Page 16
Slide 17: Wholesaler movements and quarterly phasing
Wholesaler movements b Zestril® b Prilosec® Sales growth +10% Rx growth +4% Price/mix +4% Stocks +2% A Healthcare quarterly phasing 2000 Sales Operating profit 27% +1.8% +1.2% 26% +0.1% 25% -0.4% -0.4% -0.6% -0.7% 24% -1.0% Q1 Q2 Q3 Q4 Note: each quarter expressed as percentage of full year A Page 1
Slide 18: Healthcare highlights and operating margins
Healthcare highlights b US wholesaler movements b Sales and profit phasing b EPS ✦ tax rate 29% ✦ net interest: Syngenta and exchange gains A Healthcare operating margins: full year FY99 FY00 Key points Margin 23.9 25.6 + 1.7 COGS + 0.5 b Merck costs increased by 0.7% R&D - 0.4 b Phase III/IV costs
Slide 19: Synergies and currency
Synergies b Benefits in year: $650m vs $500m target b SG&A synergies comprise $500m b On track to deliver $1.1 bn A Currency +5% Sales Operating profit Q4 -1% -1% FY -2% EPS -4% A -7% Page 19
Slide 20: Currency movements and cash flow
Currency movements US$ weak US$ strong US$ strong -10% Yen Yen +9% SEK +8% SEK +6% GBP +5% GBP +5% Euro +12% Euro +2.5% 2000 average vs 1999 average 2001 spot rate vs 2000 average A Cash flow +$5.0bn -$1.4bn -$0.8bn Capex -$0.6bn Exceptionals -$1.6bn Tax +$0.9bn +$1.3bn Dividend Share buyback Syngen
Slide 21: 2001 outlook
2001 outlook b Sales mid single digits b Investment vs releasing resources b Net interest income b Tax rate target: 26%-27% by 2002 b Market EPS range $1.72 - $1.85 b Current exchange rates A A Appendices Page 21
Slide 22: Healthcare operating margins Q4; GI and CV milestones
Healthcare operating margins: fourth quarter Key points Q499 Q400 Margin 20.6 23.7 + 3.1 b 1999 margin low COGS - 0.8 b Higher Merck royalty R&D - 1.0 b Fourth quarter bias b Megabrand trials S,G & A + 2.9 b Synergy benefits b Field force expansion and launch programme Other + 2.0 A GI and CV milest
Slide 23: Respiratory, Oncology and Specialist milestones; sales variance
Respiratory, Oncology & Specialist milestones Arimidex® :adjuvant Faslodex™: NDA ATAC-trial results submissions 1Q 2001 expected 2001 Viozan™: NDA/MAA for 2nd line advanced BC submissions 4Q 2001 Naropin®: NDA/MAA Seroquel® granules: submissions 4Q 2001 NDA/MAA submissions for spinal anaesthesia 2Q
Slide 24: Operating profit variance; cautionary statement
Operating profit pre EI variance analysis FY 99 FY 00 Total Exch CER $m $m % % % Healthcare 3,595 4,011 +12 -2 +14 Other Trading (25) (27) -8 -4 -4 Continuing Group Total 3,570 3,984 +12 -2 +14 4Q 99 4Q 00 Total Exch CER $m $m % % % Healthcare 803 978 +22 -1 +22* Other Trading (7) (7) - - - Continui