Slide 1: Q1 2020 results
Q1 2020 results Conference call and webcast for investors and analysts 29 April 2020
Slide 2: Forward-looking statements disclaimer
Forward-looking statements disclaimer In order, among other things, to utilise the 'safe harbour' provisions of the US Private Securities Litigation Reform Act of 1995, AstraZeneca (hereafter ’the Group’) provides the following cautionary statement: this document contains certain forward-looking sta
Slide 3: Speakers
Speakers Pascal Soriot Pam Cheng Dave Fredrickson Ruud Dobber Executive Vice President, Executive Director and Executive Vice President, Executive Vice President, BioPharmaceuticals Chief Executive Officer Operations & IT (for Q&A) Oncology Business Unit Business Unit Marc Dunoyer Leon Wang José Bas
Slide 4: Agenda
Agenda Overview Oncology BioPharmaceuticals, Emerging markets Finance Pipeline update, news flow Closing and Q&A 4
Slide 5: Q1 2020: robust progress across the company
Q1 2020: robust progress across the company Key highlights Total revenue up by 17%; low-to-mid single-digit revenue benefit from COVID-191 Strong medicine performance across the board: new medicines (+49%)2; Oncology (+34%), New CVRM3 (+8%), Respiratory & Immunology (+22%) and Emerging markets (+16%
Slide 6: Late-stage pipeline continued strongly
Late-stage pipeline continued strongly Major news items since FY and Q4 2019 results Medicine Indication (geography) Regulatory Imfinzi ES1-SCLC2 (US) approvals Enhertu breast cancer (3L3, HER2+4) (JP) Koselugo (selumetinib) NF15 (US) Lokelma hyperkalaemia (JP) Other Lynparza prostate cancer (2L6) -
Slide 7: Q1 2020: 17% revenue growth; new medicines driving growth
Q1 2020: 17% revenue growth; new medicines driving growth Strong revenue New medicines growth continued drove growth $m Q1 2020: 400 22% 18% +$1.0bn 17% 14% 300 Total revenue growth, per cent 11% incremental revenue of the new medicines compared to Q1 20191 5% 200 100 0 Oncology New CVRM Respiratory
Slide 8: Q1 2020: solid growth in all therapy areas and EMs
Q1 2020: solid growth in all therapy areas and EMs1 Oncology now 40% of sales and annualising as a $10bn business Q1 2020 change ratio $m % % Product sales 6,311 17 100 Oncology 2,502 34 40 New CVRM 1,098 8 17 Respiratory & Immunology 1,551 22 25 Other medicines 1,159 (6) 18 Emerging markets 2,271 1
Slide 9: AstraZeneca and COVID-19
AstraZeneca and COVID-19 Strategic and multifaceted approach Safety of colleagues - well-being support - technology to enable working from home Continuity of care Safety of patients - reliability of medicines and supply to patients - adjustment to clinical trials, -manufacturing operations where nee
Slide 10: Agenda
Agenda Overview Oncology BioPharmaceuticals, Emerging markets Finance Pipeline update, news flow Closing and Q&A 10
Slide 11: Tagrisso and Imfinzi
Tagrisso and Imfinzi Global expansion; Europe and EMs made steady progress Tagrisso: 58% growth Imfinzi: 57% growth $m Country approvals 81 (1L) and 88 (2L)1 $m Country approvals 624 (NSCLC5), 2 (ES-SCLC), 16 (UC6) 1,000 • US +43% (38% of total) 500 • US $286m (62% of total) 900 Low single-digit seq
Slide 12: Lynparza
Lynparza Global expansion; majority of sales ex-US $m Lynparza: Country approvals 73 (ovarian), 64 Lynparza: $m 69% growth (breast) and 4 (pancreatic cancer) collaboration revenue 500 1,000 • US +66% (<50% of total) 400 1st-line BRCAm1 OC (SOLO-1 trial) 800 drove growth 300 • Europe +61% 600 SOLO-1
Slide 13: Calquence and Enhertu
Calquence and Enhertu Calquence inflection; Enhertu first revenue Calquence Enhertu $m Approved in 6 countries (CLL1) and 13 countries (MCL2) Approved US, Japan (mBC3 HER2+ 3L) 100 • Global $88m; US $86m • US $14m 90 Based on $30m in-market sales by 80 • US CLL Daiichi Sankyo 70 Achieved ~1/4 of new
Slide 14: BioPharmaceuticals: New CVRM
BioPharmaceuticals: New CVRM Farxiga, Brilinta: usual seasonality; limited COVID-19 impact Diabetes: 1% growth driven by Farxiga Brilinta: growth $m SGLT21 class volume growth much ahead of any other T2D2 medicine $m continued globally 800 • Farxiga +19% • Brilinta +19%: growth in all regions; 700 m
Slide 15: BioPharmaceuticals: Respiratory & Immunology
BioPharmaceuticals: Respiratory & Immunology Symbicort, Fasenra leading; Pulmicort stable despite COVID-19 Respiratory: 22% growth Growth across all geographies $m 1,600 • US +48% • Europe +15% 1,400 Symbicort (+76%); strong volume Robust growth across portfolio, performance supported by AG1 includi
Slide 16: BioPharmaceuticals: new launch medicines
BioPharmaceuticals: new launch medicines Portfolio of new medicines across uses and markets Fasenra Breztri Lokelma roxadustat Severe asthma COPD1 Hyperkalaemia Anaemia in CKD • Europe $46m; Japan $21m • Emerging markets $4m • Global $11m; US $10m • Emerging markets $3m Leading biologic medicine Suc
Slide 17: Emerging markets
Emerging markets Growth further diversified Total revenue EMs +16%, ex-China EMs +15%, China +17% Revenue continued to grow ahead of the long- Diversified growth: AP1 +12%, MEA2 +12%, LA3 +12%, Russia +66% term ambition of mid to high single-digit growth 15% • New medicines +87% 12% 29% of total rev
Slide 18: Agenda
Agenda Overview Oncology BioPharmaceuticals, Emerging markets Finance Pipeline update, news flow Closing and Q&A 18
Slide 19: Reported profit and loss
Reported profit and loss Q1 2020 change % total $m % revenue Total revenue 6,354 17 100 - product sales 6,311 17 99 - collaboration revenue 43 70 1 Gross margin 77.5% (1.5) pp2 Operating expenses1 4,194 10 66 - R&D expenses 1,388 10 22 - SG&A expenses 2,719 9 43 Other operating income 480 (19) 8 Ope
Slide 20: Core profit and loss
Core profit and loss Q1 2020 change % total $m % revenue Total revenue 6,354 17 100 - product sales 6,311 17 99 - collaboration revenue 43 70 1 Gross margin 78.1% (2.1) pp Operating expenses1 3,600 8 57 - R&D expenses 1,336 9 21 - SG&A expenses 2,177 7 34 Other operating income 479 (19) 8 Operating
Slide 21: Cash flow
Cash flow $0.5bn improvement in operating cash flow Net debt increased as a result of the March Key cash-flow metrics $bn payment of two-thirds of the annual dividend improved in Q1 2020 • Net cash from operating activities 0.1 2.4 $139m versus -$387m (Q1 2019) 0.2 0.4 + improved underlying business
Slide 22: Finance priorities
Finance priorities FY results supportive Deleveraging / dividend growth Revenue growth • As cash flow improves, deleveraging and progressive dividend policy +17% growth in total revenue in Q1 2020 Operating leverage • 57% ratio of core operating expenses Cash-flow growth to total revenue (vs. 61% in
Slide 23: 2020 guidance unchanged
2020 guidance unchanged Total revenue Core EPS Increase by a high single-digit to Increase by a mid- to a low double-digit percentage high-teens percentage Guidance is at CER and subject to the assumption that the global impact of the COVID-19 pandemic lasts for several more months and is based on r
Slide 24: Agenda
Agenda Overview Oncology BioPharmaceuticals, Emerging markets Finance Pipeline update, news flow Closing and Q&A 24
Slide 25: Oncology: recent pipeline highlights
Oncology: recent pipeline highlights Steady progress across several tumour types Imfinzi Koselugo (selumetinib) Tagrisso First approvals in SCLC (Singapore, US) First approval in NF1 ADAURA trial unblinded early • ADAURA Phase III EGFRm NSCLC adjuvant trial • Stage IB through IIIA; ~1/3 of all NSCLC
Slide 26: Oncology: 'what's next'
Oncology: ’what’s next’ Solid pipeline moving forward What’s next What’s now Phase I/II new medicines, selected Phase III new medicines adavosertib monalizumab Phase III capivasertib (WEE11 inhibitor) (NKG2a5 mAb6) decision breast cancer solid tumours head & neck, colorectal cancers ceralasertib ole
Slide 27: BioPharmaceuticals: New CVRM
BioPharmaceuticals: New CVRM Farxiga steadily expands to more patients Farxiga: positive Phase III results in US CKD epidemiology (Stage II-IV) CKD follow impressive results in HFrEF1 Incremental 2.7m patients ✓CV Treated CKD T2D patients not on SGLT2s diseases 1.1m + ✓Diabetes ✓Heart failure Treate
Slide 28: BioPharmaceuticals: Respiratory & Immunology
BioPharmaceuticals: Respiratory & Immunology ’What science can do’ expands Respiratory into Immunology Launch of Respiratory & Fasenra lifecycle management programme Immunology therapy area focuses on eosinophil-driven diseases Indication Phase Status • Common pathways and underlying Severe, eosinop
Slide 29: BioPharmaceuticals: 'what's next'
BioPharmaceuticals: ’what’s next’ Expanding pipeline, including immunology What’s next What’s now Phase I/II new medicines, selected Phase III new medicines cotadutide MEDI3506 roxadustat PT027 (GLP-11/glucagon co-agonist) (IL338 mAb) anaemia in CKD asthma NASH2 multiple indications MEDI7219 AZD0449
Slide 30: Late-stage pipeline events in the 2020-2021 timeframe
Late-stage pipeline events in the 2020-2021 timeframe Busy news flow continues; underpinning consistent revenue growth Q2 2020 H2 2020 2021 Regulatory Lynparza Imfinzi - ES-SCLC (EU, JP) Lynparza - prostate cancer (2L) (JP) - OC (1L) (PAOLA-1) (US) Lynparza Calquence - CLL (JP) decision - breast can
Slide 31: Agenda
Agenda Overview Oncology BioPharmaceuticals, Emerging markets Finance Pipeline update, news flow Closing and Q&A 31
Slide 32: 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
Slide 33: Questions & Answers
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Slide 34: 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