AstraZeneca PLC · LSE:AZN
AstraZeneca — Investor Presentation (March 2004)
42 slides from AstraZeneca's investor presentation, March 2004
Slide 1: General Presentation
General Presentation March 2004
Slide 2: Headline results FY 03
Headline results FY 03 2003 2002 Actual CER $m $m growth growth Sales 18,849 17,841 +6% - Operating profit 4,111 4,356 -6% -11% EPS (pre-excep) $1.78 $1.84 -3% -9% EPS $1.78 $1.64 +9% +3% Dividends $0.795 $0.70 Share repurchase $1,154m $1,190m 2
Slide 3: 2003 sales by Therapy Area
2003 sales by Therapy Area CER % adj CER growth % growth GI -16 +61 excl Losec®/Prilosec® CV +3 +19 excl Zestril® Oncology +8 +26 excl Nolvadex® Neuroscience +12 +12 Respiratory +15 +15 Total 0% +25% 3
Slide 4: US sales of Prilosec, Zestril and Nolvadex
US sales of Prilosec®, Zestril® and Nolvadex® $m 1200 1000 800 600 400 200 0 Q1 02 Q2 02 Q3 02 Q4 02 Q1 03 Q2 03 Q3 03 Q4 03 4
Slide 5: Strong sales performance offsets generic erosion
Strong sales performance offsets generic erosion $m reported 2000 1000 Others 0 Neuro- science Onc -1000 Resp CV -2000 Prilosec® Zestril® -3000 Nolvadex® GI -4000 5
Slide 6: 2003 highlights
2003 highlights Launch of Crestor® First approval for Exanta® and regulatory submissions for key chronic indications Seroquel® approved for mania in bipolar disorder 14 compounds progressed to next phase of development 15 of high-quality candidate drugs entered into development 6
Slide 7: AstraZeneca strategy
AstraZeneca strategy 1999 2004 2008+ Deliver Top-tier financial performance Full potential of growth portfolio Drive Productivity for competitive Sustainable Platform for advantage growth for growth Expand long term Next wave of development projects In-house discovery External collaboration Broaden
Slide 8: AstraZeneca: outperforming in many important growth markets
AstraZeneca: outperforming in many important growth markets Asia Latin America C&EE 60 58% 40% 40 35% 24% 20 19% 14% 13% 12% 0 d. n ea a o nd l na zi di io ic Fe ra or hi la ex In eg -20 n C B Po K ia M R s us R IMS market growth AstraZeneca internal sales growth Source: IMS Health, IMS MIDAS; MAT S
Slide 9: 2004 priorities
2004 priorities Continue to build Crestor® into megabrand Drive Oncology portfolio Progress to US market leadership for Nexium® and Seroquel® First launches for Exanta® and register chronic claims Advance development projects Continuous improvement in productivity 2004 EPS range in range of $2. 00 t
Slide 10: 2004 Outlook
2004 Outlook Top-tier financial performance overriding objective • 2004 target EPS $2.00 - $2.15 Sales • Mid-teen growth (including currency) Costs and margins • Further gross margin improvement • SG&A / R&D high teens (including currency) • Currency offset on operating margin Key sensitivities • Cr
Slide 11: Growth product performance
Growth product performance 9000 +45% 8000 7000 Crestor Faslodex 6000 Iressa Symbicort 5000 $m Nexium Arimidex 4000 Zomig Atacand 3000 Casodex Seroquel 2000 1000 0 FY 00 FY 01 FY 02 FY 03 11
Slide 12: Crestor
Crestor® First launch in Feb 03 in the Netherlands Crestor® profile • Lowers LDL-C by up to 63% across the dose range • Gets more patients to goal • HDL-C raising is maintained across dose range • Well tolerated, safety profile comparable to other marketed statins Approved in 46 markets and launched
Slide 13: Crestor: US launch tracking
Crestor®: US launch tracking IMS New prescription data Dynamic market? Verispan VectorOne™ “New to brand” share • New and switch patients only Sampling impact? Other Market Research • Initiations including samples 13
Slide 14: Crestor: early launch markets
Crestor®: early launch markets 9.0 Netherlands 7.7 8.0 8.2 7.9 6.4 7.0 6.1 6.9 5.6 5.3 5.7 Canada 6.0 %TRx share 4.8 5.0 4.2 3.6 3.5 4.0 2.6 3.0 2.1 2.3 UK 1.9 2.9 2.6 2.0 1.4 1.0 1.9 2.4 1.0 0.5 1.7 1.0 1.4 0.2 0.6 0.0 0 Mth 1 Mth 2 Mth 3 Mth 4 Mth 5 Mth 6 Mth 7 Mth 8 Mth 9 Mth 10 Mth 11 Share of C
Slide 15: Crestor: US launch NRx
Crestor®: US launch NRx Number of NRx NRx share Source: IMS Health, IMS NPA Plus - Retail, Mail Order, and Long Term Care. Share of C10A1 Statins. Feb. 2004 15
Slide 16: Crestor: US launch dynamic share
Crestor®: US launch dynamic share 50 45 % Share of Dynamic Patient Opportunities 40 35 30 25 20 16.9% 15 10 5 0 wk1 wk3 wk5 wk7 wk9 w k 11 w k 13 w k 15 w k 17 w k 19 w k 21 w k 23 Lipitor Zocor CRESTOR Lovastatin Total Pravachol Source: Verispan Instant VectorOne; Market = USC 32110 16
Slide 17: Oncology products
Oncology products FY 03 sales up 8% to $2.7 billion (+26% ex. Nolvadex®) Casodex® up 22% to $854 million • Early prostate cancer Faslodex® sales $77 million • EU launches from 2Q 2004 Iressa® FY 03 sales $228 million • Japan $101 million • US $102 million - >42,000 retail Rx’s dispensed* Arimidex® u
Slide 18: Arimidex: strong growth continues
Arimidex®: strong growth continues 50,000 45,000 Arimidex® 40,000 35,000 30,000 25,000 20,000 letrozole 15,000 10,000 exemestane 5,000 0 2 3 1 3 1 2 2 2 2 2 3 3 3 -0 -0 -0 -0 -0 -0 -0 -0 -0 -0 -0 -0 -0 n n ct ct ct b b g ec ec r r g Ap Ju Ap Ju Fe Fe Au Au O O O D D Source: IMS Health, IMS MIDAS Mon
Slide 19: … with significant opportunity for continued growth
… with significant opportunity for continued growth ATAC data 100% 90% 80% 88% tamoxifen 70% 77.1% 60% 50% 40% 30% 20% 14.8% Arimidex® 10% 6% letrozole 0% Jun-02 Jul-02 Jan-03 Jun-03 Jul-03 Nov-01 Jan-02 Nov-02 Sep-03 Dec-01 Feb-02 Mar-02 Ma y-02 Aug-02 Sep-02 Oct-02 Dec-02 Feb-03 Mar-03 Ma y-03 Aug
Slide 20: Iressa survival: Promising a better future for patients
Iressa® survival: Promising a better future for patients 1.0 0.8 ~ 30% survival at 1 year Massarelli et al 3rd & 4th line Reference data 0.6 Iressa® IDEAL 1 Iressa® IDEAL 2 Iressa® EAP survival USA 0.4 0.2 0.0 0 2 4 6 8 10 12 14 16 18 20 22 24 26 Months from randomization 20
Slide 21: Seroquel
Seroquel® Full year sales $1,487 million; up 27% CER The only leading (top 3) atypical antipsychotic to grow market share* Bipolar mania approved in US and EU *Source: IMS Health, IMS MIDAS 2003 21
Slide 22: Seroquel: US NRx in anti-psychotic market
0% 5% 10% 15% 20% 25% 30% 35% Jan-00 Feb-00 Mar-00 Market share Apr-00 May-00 Jun-00 Jul-00 Aug-00 Sep-00 market Oct-00 Nov-00 Dec-00 Jan-01 Feb-01 Mar-01 Apr-01 May-01 Jun-01 Jul-01 Aug-01 Sep-01 Oct-01 Nov-01 Dec-01 Jan-02 Feb-02 Mar-02 Apr-02 May-02 Jun-02 Jul-02 Aug-02 Sep-02 Source: IMS Health,
Slide 23: Nexium market share of PPIs global markets
Nexium® market share of PPIs global markets 70.0 59.6 60.0 Market Share % (USD) PPIs 50.0 42.0 40.0 36.4 30.0 26.2 23.0 23.1 22.6 18.8 19.2 20.0 13.2 11.1 12.8 9.6 10.0 7.8 2.3 0.0 ds ar k y li a y da n ium d n d e an in de a an A rla tr a l an nc ly na rw UK nm a US rm lg e th e l Sp Ita Fr a Fi n
Slide 24: Nexium US TRx PPI market share
Nexium® US TRx PPI market share 60% Total Prescription Market Share (PPI) 50% 40% 30% 20% 10% 0% M 0 M 0 Ja 0 M 1 1 Ja 1 M 2 M 2 Ja 2 3 Ja 3 04 0 Se 0 No 0 Se 1 No 1 2 No 2 M 3 Se 3 No 3 1 Se 2 3 0 -0 0 0 -0 0 0 -0 0 -0 0 -0 l- 0 0 l- 0 0 -0 0 0 l- 0 0 -0 l-0 -0 n- v- n- v- n- v- v- n- p- p- p- n- p
Slide 25: Nexium: strong performance in a changing US market
Nexium®: strong performance in a changing US market 30 Nexium® 20 Prilosec® OTC launch 10 PPI TRx % ex omep growth 0 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr -10 ome- -20 prazole -30 -40 Source: IMS Health, IMS NPA Plus - Retail, Mail Order, and Long Term Care. Dec 2003 Data. A2B2 Proton Pump 25 Inhibitors.
Slide 26: Symbicort
Symbicort® $m 600 COPD approved in 500 42 countries 400 Single Therapy EU filing submitted 300 9 December 2003 200 Phase III studies 100 underway in US 0 2001 2002 2003 26
Slide 27: Exanta - Oral Direct Thrombin Inhibitor
Exanta® - Oral Direct Thrombin Inhibitor Prompt onset and offset of anticoagulation Wider therapeutic margin than warfarin Predictable pharmacokinetics Low potential for food and drug interactions No dose adjustment No coagulation monitoring Elevation of ALAT in some patients First EU approval for O
Slide 28: Cautionary Statement Regarding Forward-Looking Statements
Cautionary Statement Regarding Forward-Looking Statements In order to utilise the ‘Safe Harbor’ provisions of the United States Private Securities Litigation Reform Act of 1995, AstraZeneca is providing the following cautionary statement. This Interim Report contains forward-looking statements with
Slide 29: Back up slides
Back up slides
Slide 30: 2003 operating margin
2003 operating margin FY 02 FY 03 Delta: Delta: % % Actual CER Gross margin 74.7 76.3 +1.6 +1.0 Merck +1.7% benefit Underlying –0.7% R&D 17.2 18.3 +1.1 +0.7 SG&A 33.6 36.4 +2.8 +2.6 Op margin 24.4 21.8 -2.6 -2.6 30
Slide 31: Headline results 4Q 03
Headline results 4Q 03 2003 2002 Actual CER $m $m growth growth Sales 4,875 4,901 -1% -8% Operating profit 849 1,074 -21% -26% EPS (pre-excep) $0.38 $0.45 -17% -22% EPS $0.38 $0.25 +52% +42% 31
Slide 32: Sales by quarter
Sales by quarter 5000 4800 4600 +4% +5% -8% $m 4400 2002 2003 @ CER 4200 -4% 4000 3800 0 Q1 Q2 Q3 Q4 32
Slide 33: R&D + SG&A up 5.8% CER
R&D + SG&A up 5.8% CER 3000 +8% 2500 +7% +3% +4% 2000 $m 2002 1500 2003 @ at CER 1000 500 0 Q1 Q2 Q3 Q4 33
Slide 34: STELLAR – LDL-C mean percentage change
STELLAR – LDL-C Dose (log scale) 10mg 20mg 40mg 80mg 0 Mean percentage change in -10 LDL-C from baseline -20 -20% -24% -28% -30 -30% -35% -37% -39% -40 -43% -46% -48% -46% -50 -52% -51% * -55% -60 * * Rosuvastatin n=473 Atorvastatin n=634 Simvastatin n=648 Pravastatin n=485 *p<0.002 RSV 10mg vs ATV
Slide 35: STELLAR – HDL-C mean percentage change
STELLAR – HDL-C 12% Mean percentage change in HDL-C from baseline * * 10% 9.4% 9.6% 8% 7.6% 6% 5.7% 4% 4.8% 4.4% 2% 2.0% 0% 10mg 20mg 40mg 80mg Dose (log scale) Atorvastatin n=634 *p<0.002 RSV 20mg vs ATV 20, 40 & 80mg; RSV Rosuvastatin n=473 40mg vs ATV 40 & 80mg 35
Slide 36: Nexium US TRx GE market share
Nexium® US TRx GE market share 40% 35% 30% 25% TRx Share 20% 15% 10% 5% 0% 1 2 3 1 1 2 3 2 2 3 3 -0 -0 -0 -0 -0 -0 -0 -0 -0 -0 -0 n n n ar ep ep ep ec ec ec ar Ju Ju Ju M M D D D S S S Prilosec® Nexium® Aciphex® Prevacid/pac® Protonix® generic omeprazole Source: IMS Health, IMS NPA Plus - Retail, Ma
Slide 37: Top growth markets
Top growth markets 0 500 1000 1500 2000 2500 C10A1 HMG-COA Reductase Inhibitors A2B2 Acid Pump Inhibitors N5A1 Atypical Antipsychotics B3C Erythropoietin products N3A Anti-Epileptics R3F1 B2-stim+cortic inhalants C9C Angioten-II antag, plain USD Growth N6A1 Anti-depressants Q2 03 MAT vs Q2 02 MAT L4
Slide 38: Appendices
Appendices
Slide 39: 4Q 03 operating margin
4Q 03 operating margin Delta: Delta: Q4 02 Q4 03 Actual CER % % Gross margin 74.4 78.3 +3.9 +3.6 R&D 18.2 21.4 +3.2 +2.6 SG&A 33.9 40.0 +6.1 +6.2 Operating margin 21.9 17.4 -4.5 -4.4 39
Slide 40: Primary currency influences
Primary currency influences GBP SEK 3% 2% EUR 19% 19% CAD 21% 4% 12% 2% JPY 6% USD 4% 46% 39% Currency % of sales in currency % of costs in currency 40
Slide 41: Primary currency movements for FY 03 and Q4 03
Primary currency movements for FY 03 and Q4 03 GBP SEK +8% +17% EUR +8% +17% CAD +16% +16% +17% +11% JPY +11% +8% Currency Q4 2003 vs Q4 2002 currency movement – strengthening/ (weakening) against USD 2003 vs 2002 currency movement 41
Slide 42: Why it’s more complicated than this
Why it’s more complicated than this 1. Supply chain lag: It can take up to six months for non-dollar raw materials and manufacturing costs to pass through the P&L. 2. Subventions and internal transfers can shift the underlying currency exposures. 3. Hedging: Hedging of non-dollar sales and costs smo