Astrazeneca Plc · LSE:AZN
Astrazeneca — H1 2005 Earnings Presentation
39 slides from Astrazeneca's earnings presentation, Aug 3, 2005
Slide 1: Results Update
Results Update David Brennan August 3rd, 2005 ANNUAL BUSINESS REVIEW Agenda Overview of 1H Results US Market Update Seroquel® Crestor® Nexium® Future 2 1
Slide 2: Second Quarter and Half Year Results
Second Quarter and Half Year Results ANNUAL BUSINESS REVIEW Cautionary Statement Regarding Forward-Looking Statements In order to utilize the ‘Saf e Harbor’ prov isions of the United States Private Securities Litigation Ref orm Act of 1995, AstraZeneca is providing the f ollowing cautionary statemen
Slide 3: Headline Results Q2 05 and 1H 05
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% 5 Headline Results 1H 05 2005 2004 Actual CER $m $m grow th grow th Sales 11,875 10,362 +15% +12% Operating profit 3,171 2,104 +51% +44% EPS $1
Slide 4: Headline Results 1H 05 by Region
Headline Results 1H 05 2005 2004 Actual CER $m $m grow th grow th 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
Slide 5: Strong Portfolio in Top Growth Markets
Strong Portfolio in Top Growth Markets Oncology Arim idex® Statins Crestor® A ll Antagonists Atacand® Patent protected PPIs Nexium® Atypical Antipsychotics Seroquel® Special Anti- rheumatics Anti-Epileptics Antiplatelets Fixed comb. ß-agon.+steroids Symbicort ® Analgesics 0 500 1000 1500 2000 2500 3
Slide 6: Sales & Costs: Maintaining the Trends
Sales & Costs: Maintaining the Trends 25% Launch of Crestor® 20% 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 T otal Sales - MAT Growth R&D/ SG&A - MAT Growth 11 Strong 1H Performance Effective Cost Sales Growth Management + 12
Slide 7: US Business Update
Results Update David Brennan August 3rd, 2005 ANNUAL BUSINESS REVIEW US Business Update Tony Zook August 3rd, 2005 ANNUAL BUSINESS REVIEW 7
Slide 8: US Market Growth Remains Strong
US Market Growth Remains Strong 2004 US Pharma Market Exceeded $235B $250 4.0 Market Value +7% 3.8 $200 3.6 Total Prescriptions $ Prescriptions 3.4 Sales (billions) +4% (billions) $150 3.2 3.0 TRx $100 2.8 2.6 $50 Dollar market growth for 2.4 2005 forecasted to be 2.2 7.5% to 8.5% $0 2.0 2000 2001 2
Slide 9: AstraZeneca Marketing Model: Brand-Led and Customer Focused
AstraZeneca Marketing Model: Brand-Led and Customer Focused Co-led by Commercial (CBL) and Development (DBL) leaders who have full accountability for P&L Most functions on brand team located together to foster integration and strategy development Resources deployed to the brand report into skill cen
Slide 10: AZ Sales Force Technology: Industry Leading
AZ Sales Force Technology: Industry Leading in Today’s Environment • Integrated s ales report s upporting Operations, Perfor manc e & • Portable Acc ess to AZ Pharmaceutical Communic ations Customer Sales Specialists Infor mati on •1.1 million details/month •650,000 calls/month • Strategic Targeting
Slide 11: US Promotional Activity
US Promotional Activity Rank AZ Strong Promotional Presence Details Events Direct to Consumer ePromotion 1 Pfizer Pfizer GSK J&J 2 GSK GSK Pfizer GSK 3 Merck Sanofi-Aventis AZ AZ 4 Sanofi-Aventis AZ J&J Sanofi-Aventis 5 AZ Forest Novartis Pfizer Source: IMS, Full and Brief Contacts (Details) 12 Mont
Slide 12: 1H US Performance Update
Evolution of Consumer Promotion As an industry leader, AZ plays a key role in shaping the landscape of DTC Advertising Ahead of the curve with new internal guidelines Nexium® and Crestor® Focus on Education, Awareness and Access Disease state focus Directness and openness – risk/benefit Prescription
Slide 13: US Performance: AZ Fifth in US
US Performance AZ Fifth in US with $12.3 Billion in Sales Market Rank US Sales Gro wth Share Cap $Bill $243 7% 100% Total Mar ket 1 $30 -2% 12% $205 Pfizer 2 GSK $19 2% 8% $136 3 J&J $16 3% 7% $193 4 Merck $15 0% 6% $68 5 AstraZ eneca $12 15% 5% $68 6 Novartis $11 9% 5% $111 7 Sanofi-Aventis $11 13%
Slide 14: Key Growth Brands 1H Results
Key Gr owth Brands 1H Results Nexium ® : 1H sales $2,259m, up 22% US sales $1,514m, up 18% Other markets $745m, up 28% Crestor®: 1H sales $590m, up 72% US sales $338m, up 83% Other markets $252m, up 57% Seroquel®: 1H sales $1,300m, up 37% US sales $933m, up 34% Other markets $367m, up 44% *Source: I
Slide 15: Toprol-XL Performance and 2005 Key US Initiatives
TOPROL-XL® TRx Performance 4 0% Atenolol = 34.4% 3 0% Toprol-XL= 28.5% Tota l TR x Sha re 2 0% 1 0% 0% May-04 Jun-05 Topro l-XL Metop rolo l Tenormin Atenolo l Pro panolol Coreg Innopran XL All Others Toprol-XL: Still the #1 Prescribed Drug by Cardiologists Source: IMS NPA 29 2005 Key US Initiatives
Slide 16: US Seroquel Update
US Business Update Tony Zook August 3rd, 2005 ANNUAL BUSINESS REVIEW US Seroquel® Update Johan Hoegstedt August 3rd, 2005 ANNUAL BUSINESS REVIEW 16
Slide 17: Seroquel Continues to Drive the Global Atypical Market
Seroquel® Continues to Drive the Global Atypical Market 80% 70% Global Atypical Market - $14B, growing at 13% 60% Seroquel ® Global Sales in 50% 1H: $1.3B 40% 30% 20% 10% 0% Y S A M L . NY DS .K A AL AI LI U -10% IU AD U AN MA RA T *IT G AN RE EL RL ER T US IN C B HE G PA A ET S N *Source: IMS Healt
Slide 18: Antipsychotic TRx Market Growth; Seroquel Share of Voice
Antipsychotic TRx Market Growth 6.0% YTD Actual 5.3% Mar ket grow th opportunities: 5.5% 5.3% 5.2% •PCP education on diagnosing Bipolar Mania 5.0% •Increasing patient compliance on prescriptions 4.5% 4.2% 4.1% 4.0% 3.8% 3.5% 3.0% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2004 = 8.2% Source: IM
Slide 19: Share of Voice with PCPs is Strong
Share of Voice with PCPs is Strong 70 60 50 PCP % SOV 40 30 20 10 0 3 3 3 3 04 4 4 4 4 4 05 5 5 -0 l-0 -0 -0 -0 -0 l-0 -0 -0 -0 -0 n- n- ar ar ay ov ay ov ay p p Ju Ju Se Ja Se Ja M M M M M N N Seroquel Zyprexa Symbyax Abilify Risperdal Geodon PCP is defined as: Emergency Medic ine, Family Practic e
Slide 20: Publication of New Clinical Data; Seroquel
Publication of New Clinical Data CAFÉ: Results presented at the 8th World Congress of Biological Psychiatry (WCBP) in Vienna, Austria QUARTZ: Re sults presented in May at American Psychiatric Association convention (APA) BOLDER: Results presented in May at American Psychiatric Association convention
Slide 21: US Seroquel Update: Opportunity
Opportunity Large and Grow ing Class Best in Class Profile Seroquel ® will be the leading brand in the Sw itching and PCP Education treatment of mental illness New Patient and in the improvement of Opportunities patients’ lives. Medicare/ Compliance LCM Case Management 41 US Seroquel® Update Johan H
Slide 22: US Crestor Update
US Crestor® Update Adele Gulfo August 3rd, 2005 ANNUAL BUSINESS REVIEW Agenda Statin Market Overview Crestor® Performance & Strategic Positioning Recent Events/Efforts 44 22
Slide 23: Dyslipidemia Treated Patient Pyramid
Dyslipidemia Treated Patient Pyramid 109M Prevalent1 50M Diagnosed 2 40M Drug Eligible3 24M Statin 12-13M Treated 2 Monthly Patients Sources: 1,2 – Decision Resources, DB7 45 3 – Updated ATP II I Guidelines and NHANES IV Drug Eligible Patient Analysis Statin Eligible Patients Drug Eligible Patients
Slide 24: US Statin Market Sales and Rxs
US Statin Market Sales and Rxs $18.0 $16.5 $16.0 $14.9 11% $14.0 $13.2 13M 9% $12. 0 11.9M Sales (US$ Billions) $12.0 $10.1 10.4M $10.0 9.1M 9.5M $8.0 $6.0 $4.0 $2.0 $0.0 MAT June 01 MAT June 02 M AT June 03 MAT June 04 MAT June 05 Source: IMS Health, National Sales Perspectives; NPA TRxs 47 Key Sta
Slide 25: Statin Market NRx Share
Statin Market NRx Share Through week ending July 15th 2005 6 0.0% 5 0.0% 4 9.3% 4 0.0% NR x Share 3 0.0% 2 0.0% 1 8.0% 1 0.0% 6.2% 0.0% 9/19/03 10/19/ 03 11/19/ 03 12/19/ 03 1/19/04 2/19/04 3/19/04 4/19/04 5/19/04 6/19/04 7/19/04 8/19/04 9/19/04 10/19/ 04 11/19/ 04 12/19/ 04 1/19/05 2/19/05 3/19/05
Slide 26: 2005 Endorsements of Crestor's Safety Profile
2005 Endorsements of Crestor’s Safety Profile Label Update Labeling rev isions are a normal occurrence 3 minor changes to the prescribing information FDA Petition response Renal prof ile comparable to other other marketed statins Muscle toxicity comparable to other marketed statins Greater LDL-C eff
Slide 27: The GALAXY Program
The GALAXY Program -#''*+ ! " " " +/ ) 7 ,#+ (+. / ,#-# + % #$ $" % ,#+ (+. // +!/-*' * -#+ /1 #$ $" $ 1/ #+. *(+ +* 4 '()*+ 3(0/-#+ #$ $" ,#- + )* 2 " 0'(- 0 '*+/ 8 9 & #60' +#+ '*+ 0 " # '/0 # 0(' *+ /+/ )#0-()#/ *+/# )#0-()#// -*+ 5/0 53 Summary Statin market offers tremendous opportunity Crestor
Slide 28: US Nexium Update
US Crestor® Update Adele Gulfo, VP Prim ary Care August 3rd, 2005 ANNUAL BUSINESS REVIEW US Nexium®Update Linda Palczuk Executive Director August 3rd, 2005 ANNUAL BUSINESS REVIEW 28
Slide 29: Nexium Achieves #1 Spot for PPIs in the US
Nexium® Achieves #1 Spot for PPIs in the US Strong performance in 1H US Sales up 18% to $1,514 million US: positive share gains across all metrics Y TD June Total Rx + 13%* Y TD June Extended Units + 16%* Nexium® passes Prevacid for #1 TRx spot* NSAID opportunity PPIs represent $13 billion in sales*
Slide 30: Total Rx Market Share (PPI)
Total Rx Market Share (PPI) 40.0% To ta l Pres crip ti on M arket Sh are (PPI) Nexium® = 28.54% 30.0% +0.08 % Prev acid Family = 28.46% +6.7 % 20.0% 10.0% 0.0% J un-03 Sep -03 Dec -03 M ar-04 J un-04 Sep -04 Dec -04 M ar-05 J un-05 PRILO SEC NEXIUM Prevacid/pac Aciphex Protonix Generic Omeprazole So
Slide 31: PPI Market TRx Growth; Nexium Share of Voice
PPI Market – TRx Extended Unit Growth Trends* Q303 Q403 Q104 Q204 Q304 Q404 Q105 Q205 ‘04 Act YTD Act 46% PPI 1.6% 8.4% 5 0% PPI ex-Omep 11.2% 8.7 4 0% 3 3% Nexium® 19.4% 15.8% 26 % 3 0% 23 % 1 8% 17 % 18 % 17 % 15 % 16% 1 5% 2 0% TRx EU Gro wth % 13% 12 % 9% 10% 9% 8% 5%9 % 9% 9% 9% 1 0% 3% 0% 0% 0
Slide 32: Managed Markets Environment; NSAID Indication
Managed Market’s Environment Competitive But Nexium® Access Consistent and Strong Broad formulary coverage continues Nexium ® position in key accounts continues as a preferred branded PPI Nearly two thirds of business comes from top PBMs and Mail Access within top PBM/Mail strong PBM access overall
Slide 33: Nexium I.V. Update
I.V. Update Nexium ® I.V. approved March 31st 3rd I.V. entrant Current Market Environment Highly competitive pricing on I.V. f ormulation Contractual link between I.V. and oral f ormulations Nexium ® IV/Hospital Strategy Superior clinical prof ile of Nexium® I.V. Priced competitiv ely Capture spillo
Slide 34: The Road Ahead
The Road Ahead ANNUAL BUSINESS REVIEW Formula for Success Has Not Changed Sustainable long-term growth enabled by: Driving unique in-line brand opportunities Improving operational efficiency Bring differentiated, superior products to market Disciplined cost management and focus on productivity Corpo
Slide 35: 2005 Outlook and Shareholder Return
2005 Outlook and Shareholder Return 2005 Above $2.75 (>37% growth) EPS Sales approaching double digits (CER) Margin around 27% of sales Shareholder 29% increase interim dividend Returns Share repurchase target $3 bn Outlook Strong foundation for growth 69 Late Development (Phase III) Project Summary
Slide 36: Symbicort; Phase III: Galida
Symbicort® Symbicort® pMDI in asthma US filing on track late 3Q 2005 EU submission filed Symbicort® Maintenance and Reliever Therapy for asthma: EU filing on track 4Q 2005 New studies support submission: SMILE and COMPASS 71 Phase III: Galida™ On track for regulatory submissions in 2007 GALL ANT pro
Slide 37: Phase III: Cerovive SAINT I Results; Zactima
Phase III: Cerovive™ SAINT I Results SAINT I first ever positive Neuroprotectant Trial Significant reduction in disability measured by Modified Rankin Scale Effect present across 6 hour time window across stroke severities irrespective of rt-PA use Neurological recovery end point not significant on
Slide 38: Early Development Project Summary
Early De velopment Project Summary July 05 Pre-clinical Phase I ZD6126 AZD2914 AZD8081 AZD2171 AZD3342 Phase II Solid t um our s COPD FGD Solid T um our s COPD AZD6140 Ar ter ial ZD4054 AZD2392 Solid T um our s AZD4440 Asthm a/ AZD9272 AZD3409 AZD1981 thr om bos is Solid t um our s GERD Solid T um o
Slide 39: Other Portfolio Developments
Other Portfolio Developments Licensing activity Two preclinical compounds from NPS for neuropathic pain and GERD (AZD9272 and AZD6538) MEK inhibitor from Array Biopharma in phase I for solid tumours AZD6244 (ARRY-142886) Reverse Cholesterol Transport enhancers with Avanir (AVP 26452) – IND planned l