AstraZeneca PLC · LSE:AZN
AstraZeneca — Investor Presentation (December 2017)
27 slides from AstraZeneca's investor presentation, December 2017
Slide 1: A focused biopharmaceutical company
A focused biopharmaceutical company Investor Relations Team General presentation for investors and analysts December 2017
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: Strategic priorities
Strategic priorities Achieve 1 Return 2 Be a great 3 scientific to growth place to work leadership 3
Slide 4: New Cambridge, UK R&D centre and HQ
New Cambridge, UK R&D centre and HQ Scientific collaborations key driver behind move 4
Slide 5: Focused strategy: Three therapy areas
Focused strategy Three therapy areas Cardiovascular and Oncology Respiratory Metabolic Diseases Commitment to further focus the portfolio 5
Slide 6: R&D productivity: Sustainable progress
R&D productivity: Sustainable progress A new AstraZeneca with science-based culture Scientific publications FDA BTDs granted in AZN’s Sustainable level of potential High-impact publications main therapy areas 2016-2017 new medicines in Phase II trials Medium-impact publications Other publications On
Slide 7: Late-stage pipeline news flow: Unprecedented activity level in '17
Late-stage pipeline news flow Unprecedented activity level in ‘17 Forxiga Siliq benralizumab Imfinzi Kyntheum Lynparza Symbicort Imfinzi Tagrisso type-2 diabetes psoriasis severe, uncontrolled asthma bladder cancer psoriasis ovarian cancer 2L, 4L/tablets COPD exacerbations lung cancer (PACIFIC) lung
Slide 8: Late-stage pipeline and key lifecycle medicines
Late-stage pipeline and key lifecycle medicines Significant opportunities exist in all three therapy areas Cardiovascular and Oncology Respiratory Metabolic Diseases Lynparza1, 2 ZS-92 Fasenra1 multiple cancers hyperkalaemia severe, uncontrolled asthma2 / COPD Tagrisso1, 2 roxadustat2 PT010 lung can
Slide 9: Full pipeline of new medicines (NMEs)
Full pipeline of new medicines (NMEs) 1 Includes significant fixed-dose combination projects and parallel indications that are in a separate therapy area (See LCM chart for other parallel indications and oncology combination projects) # Partnered and/or in collaboration; ¶ Registrational P2/3 study
Slide 10: Late-stage pipeline news flow 2018 & 2019
Late-stage pipeline news flow 2018 & 2019 Unlocking and realising potential of new medicine H1 2018 H2 2018 2019 Regulatory decision Lynparza Lynparza - breast cancer (JP) - - ovarian cancer 2L (EU, JP) Tagrisso - lung cancer (EU, JP) - breast cancer (US) Imfinzi - lung cancer (PACIFIC) (EU, JP) Tag
Slide 11: Growth Platforms: Solid Q3 with improving performance
Growth Platforms: Solid Q3 w/improving performance Q3 2017 % Total % Product YTD 2017 % Total % Product % change % change $m Revenue Sales $m Revenue Sales Growth Platforms 3,760 6 60 77 11,055 4 66 75 Emerging Markets 1,515 10 - - 4,519 7 - - Respiratory 1,092 (2) - - 3,372 (3) - - New CVMD 873 7 -
Slide 12: Strategic value-creation framework
Strategic value-creation framework R&D productivity & focus drive decisions Externalisation1 (milestones/royalty) Accelerate/enhance value; or new medicines outside focus Focus on three Product Sales R&D productivity main therapy (Including Growth Platforms) areas ‘Following the science’ Oncology Ot
Slide 13: Building a pure-play innovator in three therapy areas
Building a pure-play innovator in three therapy areas Focusing, slimming down portfolio; optimise resource allocation ü BACE inhibitor 1. Accessing ü Siliq / Kyntheum Therapy Area (TA) ü Tralokinumab (AD1) capability / upside ü Imfinzi (haematology) Recurring • R&D investment revenue in main TAs ü M
Slide 14: Emerging Markets: Geographic platform for growth
Emerging Markets Geographic platform for growth China 12% of Europe Product Sales US 24% of Product Sales Japan 35% of 10% of Product Product Sales Sales Emerging Rest of Markets World (ex-China) Established 15% of (ex-Japan) Product Sales 4% of 2016 Product Sales as reported. Product Sales 14
Slide 15: Emerging Markets: Primary care key to success
Emerging Markets Primary care key to success 51% 32% Asia 68% $70-90bn growth 49% North America 15% Europe $185-215bn $42-49bn growth 85% growth 9% 6% AFME 91% $15-20bn Specialty care Latin growth America Primary care $20-25bn growth 94% 40% World 60% $305-335bn growth Share of absolute growth 2016-
Slide 16: Core Profit & Loss
Core Profit & Loss YTD 2017 % Total Q3 2017 % Total % change % change $m Revenue $m Revenue Total Revenue 16,688 (3) 100 6,232 10 100 - Product Sales 14,665 (8) 88 4,882 (2) 78 - Externalisation Revenue 2,023 50 12 1,350 n/m 22 Gross Margin 81.8% (1) pp - 79.6% (4) pp - R&D Expenses 3,956 (2) 24 1,3
Slide 17: Debt profile and credit ratings
Debt profile and credit ratings Debt maturity profile at 31 December 20161 Moody’s: A3 | Negative outlook Standard & Poor’s: BBB+ | Stable outlook 1. Currency converted at 31 December 2016 spot rates (USD/EUR 0.9481; USD/GBP 0.8100). 17
Slide 18: Sustainability
Sustainability As a company built on delivering positive health outcomes, sustainability underpins everything AstraZeneca does • As we strive to reach 200 million patients by 2025, we are evolving our approach and in 2017 rolled out a roadmap that further embedded sustainability into the Company’s D
Slide 19: Sustainability - recent highlights
Sustainability - recent highlights #2 Overall in Pharmaceuticals, Biotechnology and Life Sciences industry group #1 in sector: Health Outcomes Contribution, Marketing Practices, Climate Strategy Healthy Heart Africa Program: Over one million patients screened in Increased the number of senior manage
Slide 20: Great place to work: Discovery, development and commercial structure
Great place to work Discovery, development and commercial structure Late-stage Discovery and early development development Commercial Innovative Medicines and Early Development Biotech Unit (AstraZeneca Research Global and Early Development) Global Portfolio Internal and Collaborations and Medicines
Slide 21: Great place to work
Great place to work Gothenburg, Sweden Cambridge, UK Gaithersburg, US Strategic R&D Centre Headquarters Strategic R&D Centre 21
Slide 22: Great place to work: Realising company vision
Great place to work Realising company vision 1. A passion for people 2. Strong, supportive, development leadership at all levels 6. Access to medicines Values and 3. Flawless technology & social responsibility Purpose and ways of working 5. Environmental 4. Energising sites and sustainability workpl
Slide 23: Great place to work: External recognitions
Great place to work External recognitions 23
Slide 24: Pipeline-driven transformation gathers pace
Pipeline-driven transformation gathers pace A new AstraZeneca is steadily emerging from 2017 • YTD and Q3 2017 in line with expectations • Financials on track • Guidance reiterated/updated • Unprecedented pipeline news flow • Business execution • Lynparza back to US growth, Tagrisso excels, Imfinzi
Slide 25: On track: Long-term goals
On track: Long-term goals >$45bn in 2023 2012-2014 2015-2017 2018+ Building strong Delivering on return Sustainable delivery foundations to growth and growth Target is at constant exchange rates (2013) which is equivalent to ~$40bn at current exchange rates. 25
Slide 26: Investor Relations
Investor Relations Thomas Kudsk Larsen Craig Marks Henry Wheeler Cambridge, UK Cambridge, UK Cambridge, UK thomas.larsen@astrazeneca.com craig.marks@astrazeneca.com henry.wheeler@astrazeneca.com T: +44 20 3749 5712 T: +44 20 3749 5714 T: +44 20 3749 5797 M: +44 7818 524185 M: +44 7881 615764 M: +44
Slide 27: Use of AstraZeneca webcast, conference call and presentation slides
Use of AstraZeneca webcast, conference call and presentation slides The AstraZeneca webcast, conference call and presentation slides (together the ‘AstraZeneca Materials’) are for your personal, non- commercial use only. You may not copy, reproduce, republish, post, broadcast, transmit, make availab