AstraZeneca PLC · LSE:AZN
AstraZeneca — Bear Stearns Conference 2004
31 slides from AstraZeneca's conference presentation, Sep 14, 2004
Slide 1: Bear Stearns Conference
A Bear Stearns Conference David Brennan, President & CEO AstraZeneca US 14 September 2004
Slide 2: 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 3: 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 4: National Health Spending per Capita Projected to Increase Rapidly Over the Next Decade
National Health Spending per Capita Projected to Increase Rapidly Over the Next Decade National Health Expenditures Per Capita, 1986-2010 2003 Total US $10,000 Healthcare spend is Actual estimated at $1.5 trillion, $9,216 $9,000 Projected 14.9% of the GDP $8, 228 $8,000 $7,000 $6,926 $6,000 $5,757 $
Slide 5: Forces affecting market growth
Forces affecting market growth + Differentiated Pipeline + Price of innovative products + Under-treated Disease States + Medicare Benefit + Demographics + Improving Economy 5 A
Slide 6: Rx Drugs Make up Only 10% of Healthcare Expenditures in US
Rx Drugs Make up Only 10% of Healthcare Expenditures in US 30% Other 7% Nursing Home Branded 7% 10% Rx Drugs Generic 3% 22% Dr. & Clinical Services 31% Hospital Sources: CMS, IMS, 2002 6 A
Slide 7: But Drug Costs Are Most Visible to the Public Due to Higher Out of Pocket Costs
But Drug Costs Are Most Visible to the Public Due to Higher Out of Pocket Costs Hospital Services 3% Out of Pocket 30% Out of Pocket 31% Rx Products 97% Other 10% 70% Payer Other Payer For example, a patient would pay $105 for $3500 in hospital services but $1050 for the same benefit in Rx services
Slide 8: The 2000 Presidential election elevated media attention that has yet to subside
The 2000 Presidential election elevated media attention that has yet to subside 7,000 Occurrence of Newspaper Articles on Healthcare and Pharmaceuticals Health Care Quarterly 1999 through the First Half of 2004 Top 26 US Newspapers by Circulation MMA Passed 6,000 Pharmaceutical 2004 US Pres. Campaig
Slide 9: Forces affecting market growth
Forces affecting market growth + Differentiated Pipeline - Lack of Successful New + Price of innovative Product Introductions products - Generic Introductions + Under-treated Disease - Multi-Tier Co-Pays States - State Price Controls + Medicare Benefit - Personal Importation + Demographics + Improvi
Slide 10: The US will continue to lead the world in market growth
The US will continue to lead the world in market growth Current Forecasts to 2008 World Wide +8-11% Japan +1-3% Europe +6-8% North America +10-13% 0% 5% 10% 15% A Growth 8-11% at Ex-Manufacturer Prices Source: IMS Health: Market Prognosis Global, Forecast at “Constant” Conditions 10
Slide 11: US Volume & Mix growth slows
US Volume & Mix growth slows + 18.3% 18 + 17.0% 3.1 16 3.5 + 14.0% 14 2.0 + 11.8% 12 + 11.1% 10 10.1 2.8 2.8 9.0 8 7.7 3.5 2.9 6 4 4.5 5.1 5.6 5.4 2 4.2 0 1999 2000 2001 2002 2003 Price Volume and Mix New Elements Source: IMS Health: MIDAS, MAT Dec 2003 11 A
Slide 12: Total promotional spend continues to increase
Total promotional spend continues to increase Promo Spend (000) $31bn $30,000,000 $20,000,000 $16 $15bn $11 $13 $10 $8 $10,000,000 $7 $7 $7 $5 $6 $5 $4 $0 MAT 6/99 MAT 6/00 MAT 6/01 MAT 6/02 MAT 6/03 MAT 6/04 ePromo PMEA DTC Journal Detailing Samples Source: IMS, IPS and Verispan, 12 Rolling Months
Slide 13: The beginning of the end to the Arms Race?
The beginning of the end to the Arms Race? Total # of Industry Sales Reps has grown by 30% since 2000 100,000 95,000 90,000 # of sales reps 85,000 80,000 75,000 70,000 65,000 2000 2001 2002 2003 2004 Source: Verispan Sales Force Structures, Q1 counts of each year 13 A
Slide 14: Key brands maintain Share of Voice
Key brands maintain Share of Voice CRESTOR Launch 60% 50% D etail Sh ar e of Voic e 40% TOPROL XL 30% NEXIUM CRESTOR, PCP 20% CRESTOR, Card SEROQUEL 10% RHINOCORT AQUA PULMICORT 0% RESPULES 03 3 4 4 04 4 03 03 03 03 04 4 03 4 l- 0 l- 0 -0 -0 n-0 r-0 n- p- v- c- b- n- g- ct- ar Ju Ju ay Ju Se No De J
Slide 15: AZ now ranks #5 as rated by physicians
AZ now ranks #5 as rated by physicians Overall Company Rank 2003 Rank 2002 Rank Pfizer 1 1 GlaxoSmithKline 2 2 Wyeth-Ayerst 3 5 Merck 4 3 AstraZeneca 5 8 Novartis 6 9 Eli Lilly 7 13 Schering 8 16 Pharmacia 9 14 Bristol-Myers Squibb 10 10 Ortho-McNeil 11 15 McNeil Consumer Products 12 21 Aventis 13 1
Slide 16: AZ brand growth exceeds market performance
AZ brand growth exceeds market performance Arimidex 60% 55% 50% Class Product 40% 35% 32% 34% 31% 28% 27% 20% 22% 20% 16% 15% 13% 9% 2% 1% 0% Nexium Respules RAQ Seroquel Casodex Toprol-XL Atacand Crestor Family -20% -22% -40% Source: IMS Health National Sales Perspectives (Growth = 12 Months Ending
Slide 17: 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 18: Crestor
Crestor® Approved in over 60 markets Over 3 million patients treated Over 10 million prescriptions dispensed globally Efficacy and safety confirmed in the market New NCEP guidelines 18 A
Slide 19: CRESTOR Share
CRESTOR Share 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 9/19/03 10/3/03 10/17/03 10/31/03 11/14/03 11/28/03 12/12/03 12/26/03 1/9/04 1/23/04 2/6/04 2/20/04 3/5/04 NRx Shar e 3/19/04 US Crestor® growth 4/2/04 4/16/04 TRx Shar e 4/30/04 5/14/04 5/28/04 6/11/04 6/25/04 19 7/9/04 7/23/04 8/6/04 A 8/20/04 6.0% 7.3%
Slide 20: Crestor US Dynamic Share (new and switched patients)
w k1 w e wk 19 3 /0 0 5 10 15 20 25 30 35 40 45 50 w 9/ e 03 03 w /1 k5 0/ 03 wk 17 7 CRESTOR /1 w 0/ e 03 w 31 Market = USC 32110. k9 /1 w 0/ w e 03 k1 14 1 /1 w 1/ e 03 w 2 k1 8/ 3 LIPITOR 11 w /0 w e2 3 k1 1/ 5 12 w e /0 3 26 w k1 /21 w 7 /0 3 k1 09 9 /0 ZOCOR w 1/ w e 04 k2 23 1 /0 w 1/ e NOTE:
Slide 21: Crestor: STELLAR study
Crestor®: STELLAR study LDL-C lowering across the dose range LDL-C: LS mean change from baseline at week 6 & & ! ! " ! # # # ' ! $ ( ) ''' %%% %%% ! $ ) ''' ''' ''' %%% ! * ) ''' ''' ''' !" !" !!#$ $ %!& ' &$ %!(#!()!& ' $ %!(#!()!& !" !!#$ $ #!()!& ' &$ #!()!(*!& ' $ #!()!& !" !!#$ $ )!& ' &$ )!(*!
Slide 22: Reporting rates of rhabdomyolysis with statin therapy
Reporting rates of rhabdomyolysis with statin therapy Semiannual Reporting Rates for All Reports of Rhabdomyolysis 3 ' ) 4 5 5 6 88 !!! ./) /) !!!( ( ) - 0) %( 9 $ $ * ) 5 ) - " !!!67- " ! 5 ! 12 ) 5- /) 5 !!!( %( 57 5 &+,, ,+,, &+ ,+ &+ ,+ &+ ,+ + & $+ & &+ ! $+,, + $+ + $+ + $+ + & -+ & + ! + $+ !
Slide 23: Oncology - progress
Oncology - progress Casodex® - class leader ($478 million +4%CER) • Early prostate cancer Faslodex® - first in class ($49 million) • Launched in first EU markets Iressa® - first in class ($196 million) • Japan $63 million • US $100 million - retail Rx’s dispensed up 17% vs Q1 04* Arimidex® - class l
Slide 24: Seroquel
Seroquel® End June MAT $1.709bn H1 04 sales - $936m Atypical market growth continues Seroquel® gaining market share Mix improvement New data • Bipolar depression data (BOLDER Study) – APA ’04 • Efficacy in dementia (STAR Study) – ICAD ‘04 *Source: IMS Health, IMS MIDAS 2003 24 A
Slide 25: Seroquel: US NRx in anti-psychotic market
0% 5% 10% 15% 20% 25% 30% 35% Jan-00 Feb-00 Mar-00 Apr-00 Market share May-00 Jun-00 Jul-00 Aug-00 Sep-00 Oct-00 Nov-00 market 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 Oct-02 Nov-02 Dec-0
Slide 26: A Successful mania launch in Europe
Value Market Share % Value Market Share % 7.0 9.0 11.0 13.0 10.0 12.0 14.0 16.0 18.0 20.0 Jan-03 Jan-03 Feb-03 Feb-03 Mar -03 Mar-03 Apr-03 Apr-03 May-03 May-03 Jun-03 Jun-03 Jul-03 Jul-03 Aug-03 Aug-03 Sep-03 Sep-03 Oct-03 Oc t-03 Nov-03 Nov-03 Sour ce: IM S Heal th M IDA S M o nthl y Sour ce: IMS
Slide 27: Total Prescription Market Share (PPI)
Nexium® US TRx PPI market share 60% Total Prescription Market Share (PPI) 50% 40% 30% 20% 10% 0% 00 01 02 03 04 0 0 0 1 1 1 2 2 2 3 3 3 04 4 -0 l-0 r- 0 l-0 -0 l-0 -0 l-0 l-0 -0 -0 -0 -0 n- n- n- n- n- r- pr pr pr Ju Ju Ju Ju Ju ct ct ct ct Ap Ap Ja Ja Ja Ja Ja A A A O O O O Prilosec® Nexium® Prevac
Slide 28: TRx EU Growth %
US PPI market - TRx extended unit growth trends* Q103 Q203 Q303 Q403 Q104 Q204 June 90% 76% TRx EU Growth % 70% 56% 47% 50% 31% 33% 26% 26% 30% 22% 21% 16% 15% 15% 16% 18% 14% 12% 9% 10% 3% 0% -0.5% -10% -5% -3% -8% -12% -30% -34% -40% -42% -40% -50% PPI Omeprazole PPI ex-omep Nexium® *TRx EU growth
Slide 29: 2004 guidance – Q2 update
2004 guidance – Q2 update Strong second half earnings growth anticipated • Continued performance of growth portfolio • Slower growth of R&D and SG&A costs • Strong focus on productivity across the business Some reversal of YTD currency benefits expected Market trends may mitigate outcome Full year t
Slide 30: Bear Stearns Conference
A Bear Stearns Conference David Brennan, President & CEO AstraZeneca US 14 September 2004
Slide 31: 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