Astrazeneca Plc · LSE:AZN
Astrazeneca — Merger or Acquisition (December 2015)
21 slides from Astrazeneca's merger presentation, Dec 17, 2015
Slide 1: Majority-stake investment in Acerta Pharma
Majority-stake investment in Acerta Pharma 17 December 2015
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, pe
Slide 3: Agenda
Agenda Overview Pascal Soriot Opportunity Luke Miels Clinical Sean Bohen Financials Marc Dunoyer Closing Pascal Soriot 3
Slide 4: Overview: On-strategy, focused investment
Overview On-strategy, focused investment • ACP-196 (acalabrutinib) potentially best-in-class Bruton’s Tyrosine Kinase inhibitor (BTKi) – Global potential peak-year Product Sales in excess of $5bn with opportunity for first regulatory submission in H2 2016 • 55% stake now ($2.5bn + $1.5bn deferred) –
Slide 5: Achieve Scientific Leadership
Achieve Scientific Leadership R&D in three therapy areas (TAs) and across key platforms Respiratory, Cardiovascular & Inflammation & Oncology Metabolic Disease Autoimmunity Infection & Vaccines Neuroscience TAs Opportunity-driven Small Protein Biologics Immuno-therapies Devices molecules engineering
Slide 6: Acerta: On-strategy investment for AstraZeneca
Acerta: On-strategy investment for AstraZeneca Completes AstraZeneca’s transformation in Oncology Breast cancer Ovarian cancer Lung cancer Haematology Faslodex, Lynparza, Tagrisso, acalabrutinib pipeline cediranib, WEE-1 Iressa Immuno-Oncology Four disease areas with first or best-in-class cornersto
Slide 7: Two highly-attractive modes of action in one portfolio
Two highly-attractive modes of action in one portfolio Immuno- BTKi Oncology (PD-L1) 7
Slide 8: Haematology: Significant growth market in Oncology
Haematology: Significant growth market in Oncology Accounts for ~1/3 of total Oncology market Overall market size Market projections ($ billion) 2012 2023 $64bn $140bn-$150bn 2014 sales Medicine Indications* 50 ($bn) ~40 43 Rituxan/ $6.2 DLBCL, FL, CLL 40 MabThera Revlimid $5.0 MM, MDS, MCL 30 Gleev
Slide 9: The promise of targeted therapies in haematology
The promise of targeted therapies in haematology Example in CLL Medical need Projected G7 market • Median age of onset ~70 years old 2014 2024 • Majority of patients with existing $1.8bn $10.6bn comorbidities 1% <1% 1% • Requires highly efficacious treatment with good tolerability 2% 12% 23% BTKi cl
Slide 10: CLL market growth underpinned by aging population and longer treatment duration
CLL market growth underpinned by aging population and longer treatment duration Medicine-treated population Treatment duration* +18% 8,651 7,402 CD20, e.g. 14,374 rituximab + 5.5 chemo-containing months 12,249 regimen BTKi regimen 35 months 22,843 19,343 2013 2024 1st Line 2nd Line 3rd Line+ 10 Sour
Slide 11: BTK inhibition requires continuous target suppression
BTK inhibition requires continuous target suppression • Long duration of treatment Atrial fibrillation • Maintaining response requires continuous dosing Rash Bleeding • Interruptions or dose reductions can lead to Tolerability fast disease progression or resistance issues • In NHL, combinations are
Slide 12: First-generation BTK inhibitor: Discontinuations from multiple factors
First-generation BTK inhibitor Discontinuations from multiple factors Other event Richter’s transformation CLL progression Richter’s transformation: A transformation which occurs in some patients with CLL into a fast-growing diffuse large B cell lymphoma, a variety of non-Hodgkin lymphoma which usua
Slide 13: Acalabrutinib: The molecule
Acalabrutinib: The molecule Second-generation BTKi with best-in-class potential Selective • Approximately 1,000 patients treated to date; more than Irreversible 600 as monotherapy Short half-life • Better overall tolerability Twice-daily dosing (continuous target occupancy) • Lower rate of discontin
Slide 14: Acalabrutinib: Remarkable efficacy
Acalabrutinib: Remarkable efficacy Phase I in relapsed/refractory (R/R) CLL Best response per 28-day cycle Progression-Free Survival 14 Source: Byrd, J.C. (2015). Acalabrutinib (ACP-196) in Relapsed Chronic Lymphocytic Leukemia. The New England Journal of Medicine. DOI: 10.1056/NEJMoa1509981
Slide 15: Acalabrutinib: Haematology development
Acalabrutinib: Haematology development Regulatory submission possible from H2 2016 Indication Trial design and line of therapy Phase acalabrutinib vs. ibrutinib III R/R CLL acalabrutinib + obinutuzumab vs. obinutuzumab + chlorambucil vs. III acalabrutinib TN CLL acalabrutinib, First in human study I
Slide 16: Acalabrutinib: Solid cancers and inflammation
Acalabrutinib: Solid cancers and inflammation Pancreatic 1L Pancreatic 2L Bladder acalabrutinib + G/A vs. G/A acalabrutinib + P vs. acalabrutinib + P vs. P • Phase II trial acalabrutinib • Phase II trial • N = 120 • Phase II trial • N = 74 • ORR primary endpoint • N = 76 • ORR primary endpoint Rheum
Slide 17: Acalabrutinib: Development summary
Acalabrutinib: Development summary • Approximately 1,000 patients treated so far across multiple indications, including ibrutinib-intolerant patients – More than 600 patients on monotherapy; almost 400 patients on combinations • Tolerability and initial efficacy data indicate best-in-class BTKi • Mu
Slide 18: Financial terms
Financial terms AstraZeneca to acquire 55% equity stake • Initial payment of $2.5bn • Deferred payment of $1.5bn; earlier of US approval or 31 December 2018 Options for Acerta shareholders to sell, and AstraZeneca to buy the remaining 45% for an additional ~$3bn Completion expected by end of Q1 2016
Slide 19: Financial terms
Financial terms Long-term value creation potential • Late-stage development medicine with expected 2017 launch and potential peak-year Product Sales in excess of $5bn Near and medium-term commitments maintained • Moderately dilutive to Core EPS in near term • Progressive dividend policy • FY 2016 gu
Slide 20: Summary: On-strategy, focused investment
Summary On-strategy, focused investment • ACP-196 (acalabrutinib) potentially best-in-class Bruton’s Tyrosine Kinase inhibitor (BTKi) – Global potential peak-year Product Sales in excess of $5bn with opportunity for first regulatory submission in H2 2016 • 55% stake now ($2.5bn + $1.5bn deferred) –
Slide 21: Q&A
Q&A Please press *1 on your phone to indicate that you wish to ask a question