Slide 1: H1 Results
Astrazeneca What science can do H1 Results 30 July 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 Products Luke Miels Finance Marc Dunoyer Lung cancer Mondher Mahjoubi Closing Pascal Soriot 3
Slide 4: Key results & status
Key results & status • Total Revenue $12.4bn, +1% – Six consecutive quarters of top-line growth – Growth platforms +11%, now 56% of total1 • Core EPS $2.29, stable – Core SG&A ratio1 continued to decline • Continuous strong newsflow – Iressa approval (US); AZD9291 regulatory submission – Strong immu
Slide 5: Strong Q2 pipeline newsflow
Strong Q2 pipeline newsflow Achieving scientific leadership On track to deliver 7-8 potential regulatory • Iressa approval (US); AZD9291 regulatory submission submissions for new medicines in 2015-2016 CAZ AVI (CEPH/BLI) • Brilinta post-MI Priority Review (US) serious infections • Regulatory submi
Slide 6: Growth platforms continue to deliver; Core EPS reflects SG&A focus, higher R&D
Growth platforms continue to deliver Core EPS reflects SG&A focus, higher R&D H1 2015 % Q2 2015 % $m change $m change Total Revenue 12,364 +1 6,307 +2 Core EPS $2.29 - $1.21 +3 Growth platforms +11%; 56% of Total Revenue FY 2015 Total Revenue guidance at CER improved: Now expected to decline by low
Slide 7: Products
Products Luke Miels EVP, Global Product & Portfolio Strategy and Corporate Affairs
Slide 8: Growth platforms: Underpinning confidence in goals
Growth platforms: Underpinning confidence in goals H1 2015 % Q2 2015 % $m change $m change Growth platforms 6,899 +11 3,494 +10 Respiratory 2,468 +9 1,225 +11 Brilinta/Brilique 275 +42 144 +38 Diabetes 1,061 +32 573 +21 Emerging Markets 2,967 +14 1,434 +9 Japan 977 +2 522 +6 Product Sales at actual
Slide 9: Respiratory: Continued franchise growth
Respiratory: Continued franchise growth Strong Q2 supported by new products Emerging markets strength $m Others Symbicort Pulmicort +9% • US stable despite formulary change; market 2,500 Symbicort +86% share increased. EU sales reduced by competition from analogues 2,000 +18% • Emerging Markets +28%
Slide 10: Respiratory: Expanding breadth & depth of patient offering
Respiratory: Expanding breadth & depth of patient offering AZD7624 PT003 (p38 inhibitor) (LAMA/LABA) COPD COPD, Phase II Potentially disease- NEW: Upcoming regulatory submission acceptance benralizumab (IL5R) AZD9412 severe asthma, (IFN-β), asthma, PT010 COPD, Phase II (LAMA/LABA/ICS) COPD COPD +9%
Slide 11: Brilinta/Brilique: Continued global growth
Brilinta/Brilique: Continued global growth Solid growth in all markets Next outcomes trial: Stroke (SOCRATES) Est. ROW $m EM 300 US • Consistent growth; particular strength in +42% Europe +36% Emerging Markets 250 +80% • US: Achieved 10% new-to-brand market share 200 in June +38% +60% 150 +38% • PEG
Slide 12: Brilinta/Brilique: Continued global growth
Brilinta/Brilique: Continued global growth US oral anti-platelet class market share EU market share new-to-brand prescriptions (NBRx) days on therapy/volume 11% 9% NBRx share - OAP class 10% 9.7% 8% 9% 7% Market share 6% 8% 5% 7% 4% 6.9% 6% 3% 5% 2% 1% 4% 0% 2/14/2014 3/28/2014 6/20/2014 9/12/2014 1
Slide 13: Diabetes: Maximising a truly global franchise
Diabetes: Maximising a truly global franchise Q2 growth normalised at high level Growth driven by product launches & EMs Others $m Fa(o)rxiga • Continued strong Fa(o)rxiga performance in all Byetta +32% Bydureon markets, including metformin-combinations 1,000 Onglyza +268% • Onglyza US demand lower.
Slide 14: Diabetes: Ongoing launches
Diabetes: Ongoing launches Fa(o)rxiga: Increasingly global success Bydureon Pen: Continued progress Australia Brazil Germany • US launch progressing well; now 55-60% Mexico Spain Sweden conversion to pen United Kingdom United States 12 • End Q2: Launched in US, EU5, Japan, Ireland, DoT market share
Slide 15: Diabetes: Towards better combination treatments
Diabetes: Towards better combination treatments Disease progression Insulin Injectable GLP-1 Oral Novel combinations saxa/dapa SGLT2 (fixed-dose combination) US PDUFA: October 2015; subsequent global approval and launch • Extends use and convenience of oral medicine DPP-4 • Simplified access • Signi
Slide 16: Emerging Markets: Q2 growth normalised
Emerging Markets: Q2 growth normalised Growth continues at high level Broad-based growth in EMs +18% Emerging Markets +14% +14% • Growth normalised in Q2 (+9%) in line with +11% +8% +9% long-term view +4% • Respiratory +30%, driven by Pulmicort and 2012 2013 H1 2014 H2 2014 Q1 2015 Q2 2015 H1 2015 S
Slide 17: Japan: Return to growth in Q2
Japan: Return to growth in Q2 Key growth brands Return to growth • Product Sales +2% (Q2: +6%) $m 140 +5% 120 +12% Q1 • Growth brands all performing well 100 Q2 80 60 • AZD9291 regulatory submission +55% 40 expected in Q3 2015 20 ~37% ~36% ~23% ~26% ~34% ~34% Market share $m 0 Crestor Nexium Symbico
Slide 18: Launch medicines: Making further inroads
Launch medicines: Making further inroads Lynparza Movantik/Moventig BRCA-mutated advanced ovarian cancer Opioid-induced constipation US cumulative new patient starts 1,200 • US launch April 2015 (co-commercialisation 1,000 with Daiichi Sankyo from May) 800 600 • Ongoing launches in Nordic countries
Slide 19: Finance
Finance Marc Dunoyer Chief Financial Officer
Slide 20: H1 2015: Robust underlying performance
H1 2015: Robust underlying performance • Total Revenue +1% • Core Gross Margin over 83%, up 1% point • Q2 Core SG&A reduced relative to Total Revenue • Strong results underpin sustained investment in Core R&D • FY 2015 Total Revenue guidance at CER improved: Now expected to decline by low single-dig
Slide 21: Profit & Loss
Profit & Loss H1 2015 Change % Total Q2 2015 Change ($m) (%) Revenue ($m) (%) Total Revenue 12,364 +1 6,307 +2 Product Sales 11,584 (2) 94 5,836 (1) Externalisation Revenue 780 +124 6 471 +54 Core Cost of Sales (1,918) (7) 16 (965) (7) Core Gross Profit 10,446 +3 831 5,342 +4 Core R&D (2,636) +24 21
Slide 22: Core SG&A: Early progress continues
Core SG&A: Early progress continues Reversal in Core SG&A ratio Five key actions $bn SM&M Core G&A SG&A ratio 1. Sales, marketing & medical (SM&M) 3.5 50% 3.0 % of Total Revenue (3)% effectiveness points 44% 45% Year-on-Year 2. Centralisation of selected functions and 2.5 process improvements 2.0 38
Slide 23: 2015 full-year guidance
2015 full-year guidance New Total Revenue Decline by low single-digit percent Constant exchange rates Core EPS Increase by low single-digit percent The Company also provides the following non-guidance information related to currency sensitivity: Based on current exchange rates, Total Revenue is expe
Slide 24: 2015 outlook
2015 outlook Reduce Core Accelerate SG&A in value externalisation & & percentage partnering New Total Revenue Decline by low single-digit percent Constant exchange rates Core EPS Increase by low single-digit percent “Significant progress made in Q2” 24
Slide 25: Progress and innovation in lung cancer
Progress and innovation in lung cancer Mondher Mahjoubi Head of Oncology, Global Product & Portfolio Strategy
Slide 26: Lung cancer: Building on leadership position
Lung cancer: Building on leadership position Iressa US approval & AZD9291 regulatory submission AstraZeneca leadership in lung cancer Long-term vision to transform patient care • Launched first tyrosine kinase • Significant unmet need across inhibitor in lung cancer (Iressa) - multiple lung cancer s
Slide 27: Lung cancer: Opportunity to expand leadership position & transform patient care
Lung cancer: Opportunity to expand leadership position & transform patient care in many lung cancer segments EGFR/ALK WT EGFRm ALKm SCLC 266k pts Mutation 48k pts 18k pts 70k pts Leading in multiple segments supports PD-L1 biomarker +ve* blockbuster opportunities (80k pts) Iressa / AZD9291 / combina
Slide 28: AZD9291: Innovative therapy with large potential
AZD9291 Innovative therapy with large potential Adjuvant Key facts United States: 3k EU5: 3k 14k • Record development Japan: 8k Patients speed, breakthrough treated designation First line EGFRm+ NSCLC • Crucial step to building United States: 12k EU5: 9k 39k leadership position in lung cancer market
Slide 29: Lung cancer: Building a leadership position
Lung cancer: Building a leadership position Treating EGFR patients in early and late-stage disease Adjuvant EGFRm+ 1L EGFRm+ 2L+ Brain metastases 2015 Iressa AZD9291 (T790M) New New indications AZD9291 AZD9291 AZD9291 + durvalumab (T790M) Novel Iressa + durvalumab molecules and AZD9291 + selumetinib
Slide 30: Durva + treme: First-in-class potential
Durva + treme: First-in-class potential Efficacy extends to PD-L1 negative patients Durva + treme effective Unmet need in NSCLC wild type in PD-L1 negative patients • Current and investigative immunotherapies do not demonstrate incremental benefit vs. SoC in PD-L1 negative NSCLC patients (e.g. ASCO
Slide 31: NSCLC: IO development programmes
NSCLC: IO development programmes Total now includes more than 5,600 patients Unresectable Adjuvant stage III 1st line 2nd line ≥3rd line ADJUVANT * PACIFIC * MYSTIC * NEW ATLANTIC * durvalumab vs. placebo durvalumab vs. placebo durva + treme Trial ready durvalumab PD-L1+ vs. durvalumab vs. SoC for d
Slide 32: Lung cancer: Towards leadership
Lung cancer: Towards leadership Building on legacy in SMs & innovation Patient population AZD3759 (EGFR) SCLC / AZD4547 (FGFR) Others AZD1775 (WEE-1) AZD8186 (PI3K), others KRASm+ selumetinib (MEK) PD-L1 neg. durva + treme PD-L1 pos. 3L followed by 1L durvalumab (PD-L1) PD-L1 pos. Third line (3L) EG
Slide 33: Oncology: Upcoming meetings
Oncology: Upcoming meetings Continued news across the pipeline World Conference on Lung Cancer European Cancer Congress 6-9 September, Denver 25-29 September, Vienna 25 abstracts accepted 18 abstracts accepted • Exact titles under embargo, but expect updates • Lynparza: Multiple science updates on •
Slide 34: Summary
Summary Pascal Soriot Chief Executive Officer
Slide 35: Late-stage pipeline: 2015 scorecard
Late-stage pipeline: 2015 scorecard Compound Indication Potential milestone brodalumab psoriasis Regulatory submission Respiratory, PT003 (LAMA/LABA) COPD Phase III results Regulatory submission Inflammation & Autoimmunity anifrolumab lupus/SLE Phase II presentation (ACR) lesinurad gout Regulatory
Slide 36: Late-stage pipeline: 2015 upcoming newsflow
Late-stage pipeline: 2015 upcoming newsflow Regulatory Regulatory decisions decisions Major Major data data presentations presentations • lesinurad (gout) • AZD9291 (lung cancer) Phase II (WCLC) • Brilinta (prior-MI) • anifrolumab (SLE) Phase IIb (ACR) • saxa/dapa (type-2 diabetes) • AZD9291 (lung c
Slide 37: Key results & status
Key results & status • Total Revenue $12.4bn, +1% • Core EPS $2.29, stable • Continuous strong newsflow • On track to deliver on long-term goals FY 2015 Total Revenue guidance at CER improved: Now expected to decline by low single-digit percent Total Revenue and Core EPS at actual exchange rates. Gr
Slide 38: On track to deliver on long-term goals
On track to deliver on long-term goals “ 30 Realised Guidance 2017 ~23.5 4% growth at CER Low-single digit decline at CER 23.23 Total Revenue ($ bn) 25 revenue Growth platforms Total Revenue at current rates2 2017 broadly in line with 2013 20 Launches to be Analyst consensus3 Lynparza 15 Iressa US A
Slide 39: Q&A
Q&A Pascal Soriot, Chief Executive Officer (Moderator) Marc Dunoyer, Chief Financial Officer Luke Miels, EVP, Global Product & Portfolio Strategy and Corporate Affairs Mondher Mahjoubi, Head of Oncology, Global Product & Portfolio Strategy and other key members of the AstraZeneca team Please press *