Astrazeneca Plc · LSE:AZN
Astrazeneca — Investor Day (October 2014)
24 slides from Astrazeneca's investor day presentation, October 2014
Slide 1: Introduction: Innovation & growth: Progress with strategy
Introduction Innovation & growth: Progress with strategy Pascal Soriot, Executive Director, Chief Executive Officer
Slide 2: Cautionary statement regarding forward-looking statements
Cautionary statement regarding 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 presentation contains certain forward-looking statements
Slide 3: Agenda: Time, Topic, Presenter
Time Topic Presenter Additional Q&A participants 12:30-12:45 Introduction Pascal Soriot 12:45-1:05 Core therapeutic areas Luke Miels 1:05-1:20 Emerging Markets/Japan Mark Mallon James Ward-Lilley, Fouzia Laghrissi 1:20-1:40 Q&A Thode, Tom Keith-Roach & Mondher Mahjoubi 1:40-2:00 Pipeline: RIA Bing Y
Slide 4: Completing the first phase of the journey
Completing the first phase of the journey >$45bn in 2023 2012-2014 2015-2017 2018+ Building strong Delivering on return Sustainable delivery foundations to growth and growth 3 – Introduction
Slide 5: Strategic priorities
3 strategic priorities 1 2 3 Achieve Return Be a great place scientific to growth to work leadership 4 – Introduction
Slide 6: Achieve scientific leadership
Scientific leadership 1 FOCUS on distinctive science in 3 core TAs PRIORITISE & ACCELERATE our pipeline Achieve scientific leadership TRANSFORM our innovation culture & model 5 – Introduction
Slide 7: Focus: R&D in core therapeutic areas & across key platforms
Focus: R&D in 3 core therapeutic areas & across key platforms Cardio- Respiratory/ Oncology Metabolism inflammation Infection & Vaccines Neuroscience Core TAs Opportunity-Driven Small Protein Biologics Immuno-therapies Devices molecules engineering Personalised healthcare capabilities 6 – Introducti
Slide 8: Focus: Accelerating the pipeline in core therapeutic areas
Focus: Accelerating the pipeline in core therapeutic areas Cardiovascular & Respiratory, Metabolic Oncology Inflammation & Disease Autoimmunity Forxiga Lynparza Benralizumab Bydureon AZD9291 Tralokinumab Internal Brilinta Selumetinib Sifalimumab accelerations MEDI4736 Anifrolum
Slide 9: Business model includes value creation through partnerships & licensing
Business model includes value creation through partnerships & licensing in Neuroscience & Infection Infection Neuroscience Public/private Partner License out Other 8 – Introduction
Slide 10: Late-stage pipeline volume well ahead of plan
Late-stage pipeline volume well ahead of plan Targeted Achieved/On track to achieve Phase III & Registration NME Phase III & Registration NME pipeline volume (#) pipeline volume (#) 14 13-15 11 9–10 8 6 6 2012 2013E 2016E 2012 2013 2014 2016E 9 – Introduction
Slide 11: What's next? Delivering a sustainable R&D pipeline
What’s next? Delivering a sustainable R&D pipeline Biologics now ~50% of pipeline 1Balanced pipeline Small molecule pipeline rebuilt Devices and diagnostics (PHC) Early-stage pipeline robust 2Robust early stage Discovery focused on core TAs New technologies Scientific talent 3Strong sc
Slide 12: Aligning around three strategic R&D sites & two satellites
What’s next? Aligning around three strategic R&D sites & two satellites Gothenburg Cambridge (UK) Cambridge New site progressing to plan and rapidly building presence in Cambridge area Boston Gothenburg (Mölndal) (SE) Gaithersburg Shanghai Links to European academic centers strengthened Gaithe
Slide 13: Return to growth
Return to growth 2 FOCUS on key growth platforms ACCELERATE through business development Return to growth TRANSFORM through specialty care / biologics 12 – Introduction
Slide 14: Revenue: business shape broadly in line with expectations
Business shape broadly in line with expectations and previous communications • Today Growth platforms have grown to over half of total revenues Pipeline • Medium term 2017 revenue to be broadly Revenue Expiring in line with 2013 Growth platforms • Long term Ambition to become Established products a
Slide 15: What's next? Upcoming submissions drive longer-term growth
What’s next? Upcoming submissions drive longer-term growth MEDI4736 + tremelimumab 2L SCCHN Faslodex MEDI4736 1L metastatic breast 2L SCCHN cancer Lynparza LE submission Brilinta BRCAm metastatic opportunities stroke breast cancer Lynparza saxa/dapa FDC brodalumab* BRCAm PSR type 2 diabetes psoriati
Slide 16: What's next? Oncology will become sixth growth platform
What’s next? Oncology will become sixth growth platform Several potential oncology Oncology likely to become a key submissions 2015-2016 growth driver MEDI4736 • Several potential submissions 3L NSCLC and launches 2015-2016 MET tremelimumab • Contributes largest proportion of papillary renal mesothe
Slide 17: Building a different shape of business
Building a different shape of business Higher probability of success, durability and profitability Increasing biologics Increasing device Increasing specialty ~50% of pipeline products care Future SC Now PC Greater durability Increasing Higher probability Greater durability profitability of success
Slide 18: Be a great place to work
Great place to work 3 FOCUS on simplification of our business DRIVE continued productivity improvements Be a great place to work EVOLVE our culture 17 – Introduction
Slide 19: 2014 FOCUS employee survey shows good progress on cultural journey
2014 FOCUS employee survey shows good progress on cultural journey Global high Global AstraZeneca performance pharma Category Total favourable overall 2012 norm norm Engagement 85 +8* -1* +5* Leadership 71 +10* -1* +12* Scientific & patient orientation 88 +12* +1* +8* Organisational effectiveness 76
Slide 20: Driving a simpler, more productive business
Driving a simpler, more productive business Key focus Progress … Structure Spans of control Improved to 7 on average Organisational layers Most staff within 8 layers Decision making Governance Fewer committees Delegation of authority Moved to 1 global standard Process & systems Enterprise IT
Slide 21: Total Shareholder Return since 1 January 2013
Total Shareholder Return since 1 January 2013 Indexed to 100 +72% +53% +19% Peer Average is an equal weighted index consisting of GSK, Novartis, Roche, Sanofi, AbbVie, Bristol-Myers Squibb, Eli Lilly, Johnson & Johnson, Merck and Pfizer. Source: Datastream 20 – Introduction
Slide 22: Total Shareholder Return since 1 January 2013
Total Shareholder Return since 1 January 2013 Pharma peer group Top-15 FTSE* Rank Company TSR Rank Share TSR 1 AbbVie 99% 1 AstraZeneca PLC 72% 2 Bristol-Myers Squibb 90% 2 Vodafone Group PLC 43% 3 AstraZeneca 72% 3 British American Tobacco PLC 23% 4 Novartis 67% 4 Royal Dutch Shell PLC (B) 16% 5 Ro
Slide 23: Key messages
Key messages Strategy implementation on track Building a sustainable, durable and more profitable business Pipeline value rapidly increasing Accelerating return to growth and ambition to become a >$45bn company by 2023 22 – Introduction
Slide 24: Introduction: Innovation & growth: Progress with strategy
Introduction Innovation & growth: Progress with strategy Pascal Soriot, Executive Director, Chief Executive Officer