Slide 1: Full-year and Q4 2019 results
Full-year and Q4 2019 results Presentation, conference call and webcast for investors and analysts 14 February 2020
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: Presenters
Presenters Pascal Soriot Dave Fredrickson Ruud Dobber Executive Director and Executive Vice President, Executive Vice President, Chief Executive Officer Oncology Business Unit BioPharmaceuticals Business Unit Marc Dunoyer José Baselga Mene Pangalos Executive Director and Executive Vice President, Ex
Slide 4: Agenda
Agenda Overview Oncology BioPharmaceuticals, Emerging markets Finance Pipeline update, news flow Closing and Q&A 4
Slide 5: AstraZeneca: the new strategic priorities
AstraZeneca The new Deliver growth and therapy area strategic leadership priorities Accelerate innovative science Be a great place to work 5
Slide 6: 2019: strong and sustainable growth in revenue
2019: strong and sustainable growth in revenue Faster strategic transition will enable operating leverage Headline news Total revenue up by 13%; including product sales up by 15% (+9% in Q4); lower collaboration revenue (-20%) Strong sales performance across the board: new medicines1 (+62%); Oncolog
Slide 7: Q4 2019: strong, recent news flow continued
Q4 2019: strong, recent news flow continued Unlocking significant value for patients and company Pipeline news Oncology • Imfinzi unresectable, Stage III NSCLC1 regulatory approval (CN) SCLC2 (ED3) regulatory submission (JP), acceptance (EU), Priority Review (US) • Imfinzi +/- treme NSCLC (1st line)
Slide 8: 2019: sales showed persistent growth
2019: sales showed persistent growth 15% sales growth; new medicines up by 62% Strong sales New medicines1 now growth continued 42% of total sales $m 19% 2019: 1,600 18% 1,400 14% +$3.8bn 1,200 Product sales growth, per cent 9% 9% 8% incremental sales of new medicines compared to 2018 1,000 Diabetes
Slide 9: 2019: double-digit growth in all therapy areas, EMs
2019: double-digit growth in all therapy areas, EMs1 Q4 2019 change ratio 2019 change ratio $m % % $m % % Product sales 6,250 9 100 23,565 15 100 Oncology 2,274 29 36 8,667 47 37 New CVRM 1,168 7 19 4,376 12 19 Respiratory 1,537 14 25 5,391 13 23 Other medicines 1,271 (16) 20 5,131 (13) 22 Emerging
Slide 10: Ambition Zero Carbon
Ambition Zero Carbon • AstraZeneca aims to eliminate CO2 emissions by 2025 and become carbon negative by 2030 • $1bn programme will include the launch of next-generation respiratory inhalers and a wide range of energy initiatives to reduce climate impact to zero • AstraZeneca has joined the Sustaina
Slide 11: Agenda
Agenda Overview Oncology BioPharmaceuticals, Emerging markets Finance Pipeline update, news flow Closing and Q&A 11
Slide 12: Oncology: 47% sales growth in 2019; annualising ~$9bn
Oncology: 47% sales growth in 2019; annualising ~$9bn 2020 is anticipated to be another year of significant growth in sales As anticipated, Q4 growth temporarily offset by New medicines Tagrisso, Imfinzi, Lynparza $m Faslodex US generics; Tagrisso price/adjustments and Calquence added $2.9bn in 2019
Slide 13: Lung cancer: Tagrisso
Lung cancer: Tagrisso 1st-line standard of care in US, JP; reimbursements underway elsewhere Strong growth Approved in 80 countries (1st-line $m +74% in 2019 use) and 87 countries (2nd-line use) 1,000 900 • US +46% (40% of total) Sequential growth reduced by higher only 18 reimbursements out of 800
Slide 14: Lung cancer: Imfinzi
Lung cancer: Imfinzi Continued expansion in ex-US countries US peak sales PACIFIC (treatment of unresectable, 2020 to provide new $m above $1bn p.a. Stage III NSCLC) becoming new SoC1 growth opportunities 450 • Approved in 61 countries plus • PACIFIC opportunities 400 15 countries in bladder cancer2
Slide 15: Lynparza
Lynparza The leading PARP inhibitor globally; more than 30,000 patients treated Ten quarters of strong Approved in 73 countries (ovarian) Merck1 collaboration: $m growth: +89% in 2019 58 (breast) and 1 (pancreatic cancer) $2.6bn revenue received; $m $5.3bn future potential 400 • US +81% (52% of tota
Slide 16: Oncology: new launch medicines
Oncology: new launch medicines Strong launches of Calquence, Enhertu Calquence Enhertu $m Now approved in 3 countries (CLL) and 12 countries (MCL) (trastuzumab deruxtecan) 60 • Global $164m; US $162m • US approval on 20 December 2019 55 First sales from Daiichi Sankyo to 50 • US CLL wholesalers on 3
Slide 17: BioPharmaceuticals: a thriving and energised business unit
BioPharmaceuticals: a thriving and energised business unit $9.8bn product sales New Cardiovascular, Renal and Metabolism +13% sales growth Respiratory Absolute values at actual exchange rates; changes at CER and for 2019, unless otherwise stated. 17
Slide 18: BioPharmaceuticals: New CVRM and Respiratory
BioPharmaceuticals: New CVRM and Respiratory Increasing growth across all major medicines 13% growth Solid franchises with $m in 2019 strong growth in 2019 3,000 • Farxiga: strong position in growing class; unique CV data, including in HF 2,500 • Brilinta: global growth continued 2,000 1,500 • Fasen
Slide 19: BioPharmaceuticals: New CVRM
BioPharmaceuticals: New CVRM Blockbusters Farxiga and Brilinta continued global growth Diabetes growth of 6% driven by Farxiga Continued growth in $m SGLT21 now the fastest-growing class of any T2D medicine by volume $m Brilinta sales in 2019 800 • Farxiga +14% • Brilinta +23%: continued solid 700 U
Slide 20: BioPharmaceuticals: Respiratory
BioPharmaceuticals: Respiratory Sales growth of 13%; Fasenra, Pulmicort, EMs leading Respiratory delivered Performance supported by portfolio mix across regions $m strong performance Symbicort back to stability in 2019 1,800 • US +17% • Europe -5% 1,600 Fasenra (+121%) offset by Symbicort (- Lower S
Slide 21: BioPharmaceuticals: new launch medicines
BioPharmaceuticals: new launch medicines Portfolio of new medicines across uses and markets Fasenra now approved in 52 Breztri Lokelma countries; reimbursed in 36 COPD Hyperkalaemia • US $482m • Japan • Global $14m; Q4 $8m Leading new biologic medicine in new- Initial uptake ahead of previous Majori
Slide 22: Emerging markets
Emerging markets Broad performance from diverse portfolio of countries Total EMs +24% - ex-China EMs +12% - China +35% Sales continued to grow ahead of the long-term Diversified growth: AP1 +10% - MEA2 +8% - LA3 +16% - Russia +40% ambition of mid to high single-digit growth 10% 12% • New medicines +
Slide 23: Emerging markets
Emerging markets Over the mid term, average sales growth in Emerging markets is anticipated to be as high as a low double-digit percentage per year 23
Slide 24: Agenda
Agenda Overview Oncology BioPharmaceuticals, Emerging markets Finance Pipeline update, news flow Closing and Q&A 24
Slide 25: Finance and IT achievements in 2019
Finance and IT achievements in 2019 Transformation programme Daiichi Sankyo collaboration Information technology 25
Slide 26: Reported profit and loss
Reported profit and loss 2019 change % total Q4 2019 change % total $m % revenue $m % revenue Product sales 23,565 15 97 6,250 9 94 Collaboration revenue 819 (20) 3 414 (36) 6 Total revenue 24,384 13 100 6,664 5 100 Gross margin 79.1% 2.1 pp2 78.0% 5.1 pp Operating expenses1 18,080 14 74 5,209 12 78
Slide 27: Core profit and loss
Core profit and loss 2019 change % total Q4 2019 change % total $m % revenue $m % revenue Product sales 23,565 15 97 6,250 9 94 Collaboration revenue 819 (20) 3 414 (36) 6 Total revenue 24,384 13 100 6,664 5 100 Gross margin 79.8% (0.2) pp 77.5% (2.4) pp Operating expenses1 14,748 7 60 4,211 7 63 -
Slide 28: Cash flow
Cash flow 13% improvement in operating cash flow Net debt reduced to $11.9bn Cash-flow headlines $bn 2019 versus 2018 • Net cash from operating activities 0.7 $2,969m versus $2,618m 3.5 0.2 Improved ‘organic’ profit 3.6 Lower disposals Improvements in working capital 2.2 13.0 13.7 6.7 11.9 Higher ta
Slide 29: Finance priorities
Finance priorities FY results supportive Deleveraging / dividend growth Revenue growth • As cash flow improves, deleveraging and progressive dividend policy +13% growth in total revenue in 2019 Operating leverage • 60% ratio of core operating expenses Cash-flow growth to total revenue (from 64% in 2
Slide 30: 2020 guidance confirms strong operating leverage
2020 guidance confirms strong operating leverage Total revenue Core EPS Increase by a high single-digit to Increase by a mid- to a low double-digit percentage1 high-teens percentage1 1. Depending on the impact of the Covid-19 epidemic. All guidance assumes an unfavourable impact from China lasting u
Slide 31: Agenda
Agenda Overview Oncology BioPharmaceuticals, Emerging markets Finance Pipeline update, news flow Closing and Q&A 31
Slide 32: 2019: another year of very significant news flow
2019: another year of very significant news flow Positive pipeline progression supports sustainable growth Forxiga Forxiga Qternmet XR Lynparza Lynparza 21 T1D1 T1D T2D breast cancer OC 1L (SOLO-1) approval (EU) approval (JP) approval (US) approval (EU) approval (EU) Breztri Bevespi Lynparza Forxiga
Slide 33: Oncology: Q4 milestones and Calquence
Oncology: Q4 milestones and Calquence Strong end to the year; news flow and approval Regulatory and Calquence other milestones Broad CLL approval (US); regulatory submission (JP), acceptance (EU) • Imfinzi Sharman, ASH 2019 IRC-Assessed Progression-Free Survival Trial/milestone Phase Status Median f
Slide 34: Breast cancer: Enhertu approved and available to patients
Breast cancer: Enhertu approved and available to patients Impressive efficacy in later lines of HER2+ metastatic breast cancer US approval four months early1 Unprecedented efficacy in Gastric cancer and Approved based on tumour response heavily-pretreated women upcoming news flow Best % change from
Slide 35: 'What's next' in Oncology
‘What’s next’ in Oncology Good progress across Phase I/II Oncology capivasertib (AKT1 inhibitor) breast, prostate cancers ✓ monalizumab (NKG2a6 mAb7) head & neck, colorectal cancers ✓ Phase III Phase III Phase II Phase III started decision adavosertib (WEE12 inhibitor) oleclumab (CD738 mAb) solid tu
Slide 36: New CVRM: portfolio of opportunities
New CVRM: portfolio of opportunities Exploring new treatment options across diseases NASH cotadutide CV diseases New CVRM Diabetes portfolio HF CKD Illustrative. 36
Slide 37: BioPharmaceuticals: New CVRM
BioPharmaceuticals: New CVRM Progress across portfolio; roxadustat met Phase III pooled safety objective Regulatory and roxadustat other milestones CKD estimated to effect ~200m adults worldwide • Farxiga HF CVOT: regulatory submission (JP, CN), Non-dialysis dependant Dialysis-dependant Incident dia
Slide 38: BioPharmaceuticals: Respiratory (and immunology)
BioPharmaceuticals: Respiratory (and immunology) Progress with inhaled medicines; anifrolumab success at ACR Regulatory and anifrolumab other milestones Good efficacy with steroid sparing Milestones • Symbicort Trial/milestone Phase Status Mild asthma: regulatory submission Detailed results (CN) Sub
Slide 39: 'What's next' in BioPharmaceuticals
‘What’s next’ in BioPharmaceuticals Early to mid-stage pipeline progressing well New CVRM cotadutide (GLP-11/glucagon co- ✓ Respiratory PT027 (SABA/ICS7) ✓ agonist) - NASH2 Phase II asthma started; Phase III Phase II Phase III ✓ Fast Track started AZD5718 (FLAP3 inhibitor) (US) AZD7594 (inhaled/nebu
Slide 40: Late-stage pipeline events in the 2020-2021 timeframe
Late-stage pipeline events in the 2020-2021 timeframe Busy news flow continues; underpinning consistent sales growth H1 2020 H2 2020 2021 Regulatory Imfinzi - SCLC (ED) (US) Imfinzi - SCLC (ED) (EU, JP) Calquence - CLL (JP) Lynparza Lynparza decision - OC (1L) (PAOLA-1) (US) - OC (1L) (PAOLA-1) (EU)
Slide 41: Updated epidemiology data
Updated epidemiology data First update since 2017 and takes account of many new indications Contains current, best AstraZeneca estimates of patient numbers in key indications and countries relevant for approved and potential new medicines Spreadsheet available at astrazeneca.com/investors/results-an
Slide 42: Agenda
Agenda Overview Oncology BioPharmaceuticals, Emerging markets Finance Pipeline update, news flow Closing and Q&A 42
Slide 43: AstraZeneca: Increasingly balanced and diversified company
AstraZeneca Increasingly balanced and diversified company Nearly half of sales More than one third of sales Nine blockbusters: reduced now in specialty care generated in Emerging markets reliance on single medicines 9 6 47% 5 5 35% 31% 25% 21% 25% 14% 15% 2013 2015 2017 2019 2013 2015 2017 2019 2013
Slide 44: AstraZeneca
AstraZeneca Global presence Strong pipeline Improving financials Balanced specialty1 and 17 Phase III medicines and Nine blockbuster medicines primary care franchises significant lifecycle projects Returned to sustainable Leading Emerging markets Advancing early and revenue and earnings growth prese
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Slide 46: Use of AstraZeneca conference call, webcast and presentation slides
Use of AstraZeneca conference call, webcast 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 availabl