Astrazeneca Plc · LSE:AZN
Astrazeneca — FY2005 Earnings Presentation
30 slides from Astrazeneca's earnings presentation, February 2006
Slide 1: 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 presentation contains forward-looking statements with re
Slide 2: Headline results FY 05
David Brennan Chief Executive Officer Headline results FY 05 2005 2004 Actual CER $m $m growth growth Sales 23,950 21,426 +12% +10% Operating profit 6,502 4,547 +43% +39% EPS Before exceptionals $2.91 $2.11 +44% +41% Statutory $2.91 $2.18 +33% +30% Dividends $1.30 $0.94 Share repurchase $3,001m $2,2
Slide 3: Headline results FY 05 and key growth drivers
Headline results FY 05 2005 2004 Actual CER $m $m growth growth Sales 23,950 21,426 +12% +10% North America 11,747 10,507 +12% +11% Europe 8,463 7,649 +11% +8% Japan 1,527 1,430 +7% +8% Rest of World 2,213 1,840 +20% +15% AstraZeneca Annual Results 2005 FY 2005 sales: Key Growth Drivers Sales CER $m
Slide 4: Life Cycle Management and Industry Environment
Life Cycle Management Seroquel® First launch in 1997 for schizophrenia Growth now fuelled by bipolar mania sNDA for bipolar depression 30 December 2005 Arimidex® First approval in advanced breast cancer Rapid growth in adjuvant treatment in early disease AstraZeneca Annual Results 2005
Slide 5: Building a stronger pipeline
AstraZeneca Annual Results 2005 Building a stronger pipeline Growing pipeline Output from Discovery boosts early pipeline External partnerships Life Cycle management for key products Seroquel® Crestor® Symbicort® Promising internal compounds advance to Phase III Zactima™ AZD2171
Slide 6: Licensing and Business Development
Licensing and Business Development Licensing Atherogenics - AGI-1067 (Phase III) Protherics - Cytofab™ (Phase II) Targacept - TC-1734 (Phase II) Acquisitions KuDOS Pharmaceuticals AstraZeneca Annual Results 2005 AstraZeneca Annual Results 2005 AstraZeneca Annual Results 2005 6
Slide 7: Focus on Delivery and 2006 priorities
Focus on Delivery Drive sales growth Life cycle management Invest in emerging markets Critical investments in R&D Shareholder value Improved productivity People AstraZeneca Annual Results 2005 2006 priorities Maintain business momentum Top line growth Improved productivity Stro
Slide 8: 2005 Scorecard
Jon Symonds Chief Financial Officer 2005 Scorecard Target Outcome Sales growth mid single digit (CER) +10% (CER) 9 AstraZeneca Annual Results 2005 AstraZeneca Annual Results 2005 8
Slide 9: 2005 Sales: platform for growth
2005 Sales: platform for growth US Global Sales Market RoW Sales Sales $m Growth Share Chng1 Growth (CER) Nexium® 4,633 +15% +3.4pts +25% Seroquel® 2,761 +33% +2.8pts +40% Crestor® 1,268 +34% +0.4pts +41% Arimidex® 1,181 +59% +7.9pts +35% Symbicort® 1,006 n/a n/a +22% Total 10,849 1 TRx share change
Slide 10: Sales and SG&A/R&D cost growth trends
Sales and SG&A/R&D cost growth trends Launch of 20% Crestor®® Total Sales - MAT Growth R&D/ SG&A - MAT Growth MAT Growth vs Prior Year 15% 10% Prilosec®® 5% Expiry 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2002 2003 2004 2005 AstraZeneca Annual Results 2005 2005 Scorecard Target Outcome Sal
Slide 11: 2005 Scorecard and Shareholder returns
2005 Scorecard Target Outcome Sales growth mid single digit (CER) +10% (CER) 9 Operational leverage 9 - R&D/SG&A 2%-3% below sales growth +2% (CER) - Margin 23% - 24% 27.2% EPS $2.35 - $2.50 +17% - +25% $2.91 +44% 9 Free cash flow around $4bn $6bn 9 AstraZeneca Annual Results 2005 Shareholder return
Slide 12: Fourth Quarter 2005
Fourth Quarter 2005 CER Q4 05 growth Comment Sales $6,286m +9% Fair reflection of underlying trends Gross Profit $4,898m $105m manufacturing 77.9% efficiencies R&D/SG&A $3,276m +11% Inflated by higher S&M costs due to specific programmes Operating Profit $1,636m +26% 26.0% Lower quarterly tax rate E
Slide 13: EPS progression and Toprol-XL assumptions
EPS progression 3.75 3.50 $3.40 - $3.60 3.25 3.00 2.75 2.50 2.25 2.00 $ 1.75 1.50 1.25 1.00 0.75 0.50 0.25 0.00 1999 2000 2001 2002 2003 2004 2005 2006 Note: Pre-exceptional pharmaceuticals EPS; 1999 – 2002 UK GAAP; 2003 – 2006 IAS AstraZeneca Annual Results 2005 Toprol-XL® assumptions Full year t
Slide 14: 2006 Priorities and Targets; 2005 Sales
2006 Priorities and Targets EPS - Including Toprol-XL® $3.40 - $3.60 +17% - +24% - Toprol-XL® earnings exposure 45¢ AstraZeneca Annual Results 2005 2005 Sales: platform for growth Quarter 4 Full Year Total US RoW Growth1 Growth1 Growth Growth1 Nexium® +18% +13% +8% +24% Seroquel® +35% +34% +34% +35%
Slide 15: 2006 Priorities and Targets
2006 Priorities and Targets EPS - Including Toprol-XL® $3.40 - $3.60 +17% - +24% - Toprol-XL® earnings exposure 45¢ Sales growth towards double digits (CER) negative currency impact ~2% AstraZeneca Annual Results 2005 2006 Priorities and Targets EPS - Including Toprol-XL® $3.40 - $3.60 +17% - +24% -
Slide 16: R&D and 2006 Priorities and Targets
R&D R&D cost growth towards double digits (including recent in-licensing/acquisitions) External R&D acquisition costs capitalised under IFRS Dec 2005 deals could result in: $360m capitalised R&D in 2006 $60m revenue costs AstraZeneca Annual Results 2005 2006 Priorities and Targets EPS - In
Slide 17: 2006 Priorities and Targets
2006 Priorities and Targets EPS - Including Toprol-XL® $3.40 - $3.60 +17% - +24% - Toprol-XL® earnings exposure 45¢ Sales growth towards double digits (CER) negative currency impact ~2% Operating leverage continues - Margin possibly 30% including Toprol-XL® around 27% excluding Toprol-XL® - R&D/SG&A
Slide 18: Organisational changes
John Patterson Executive Director, Development Organisational changes Operating model Governance, decision-making, risk identification & management Development Project Management Organisation Therapy Area Portfolio Teams Cardiovascular and Gastrointestinal Oncology and Infection Respir
Slide 19: Life Cycle Management pipeline
Life Cycle Management (LCM) Phase III Phase II Phase I Pre-Clinical Atacand® Nexium® Faslodex® CV / GI Diabetic retinopathy NSAID GI side effects – ulcer healing 1st line adv breast cancer Neuroscience Crestor® Nexium® Faslodex® Atherosclerosis Peptic ulcer bleeding Adjuvant Oncology / Infection Cre
Slide 20: Symbicort and Crestor
Symbicort® US Asthma pMDI NDA submission filed 23rd September 2005 COPD pMDI Phase III ongoing Europe Asthma Maintenance and Reliever Therapy for asthma (SMART) Turbuhaler® EU submission filed 27th September 2005 pMDI Supplemented package in 2008 AstraZeneca Annual Results 2005
Slide 21: Iressa and pipeline
Iressa® Far East 5000 patient case-controlled study in Japan Iressa® vs docetaxel study in Japan 1st line NSCLC (IPASS study) Global NSCLC Study 721 (INTEREST) almost completed recruitment Global Head and Neck cancer Phase III Iressa® vs methotrexate (IMEX) Recruitment of 477 patie
Slide 22: Thrombosis: AZD6140 and AZD0837
Thrombosis: AZD6140 Phase II Faster, more complete, platelet inhibition than clopidogrel Reversibility Total bleeding similar to clopidogrel Generally well tolerated Completed end of phase II discussion with FDA Phase III Acute Coronary Syndrome Outcomes study starting 2006 AstraZe
Slide 23: Thrombosis: Exanta and NXY-059
Thrombosis: Exanta® Prevention of VTE in OS 21 approvals and 12 launches EXTEND trial for 35 days dosing ongoing Prevention of stroke in AF Dialogue with regulatory authorities continues No clear way forward in US New submission for stroke prevention in AF in EU Regulatory review clo
Slide 24: AZD2171 and Zactima
AZD2171 Profile Orally active 24 hour cover and once daily dosing Potency at VEGF-1, 2 and 3 Phase II/III 1st line NSCLC and Colorectal Cancer First patient in Phase II/III NSCLC programme within 6 weeks of decision 7 studies started in the phase II/III programme NCI collaborative
Slide 25: Galida and AGI-1067
Galida™ GALLANT programme progressing Data at Business Review day on 8th June 2006 Four randomised phase III GALLANT studies ARMOR study Impact of other PPAR’s AstraZeneca Annual Results 2005 AGI-1067 (Atherogenics) Phase III in Acute Coronary Syndrome ARISE study Over 6000 patients
Slide 26: TC-1734 (Targacept) and pipeline
Pre- LCM Phase III Phase II Phase I Clinical AZD7009 CytoFab (Protherics) AZD2479 (Avanir) AZD6244 (Array) Atrial fibrillation (IV) Severe sepsis Dyslipidemia Solid tumours AZD9684 ZD4054 AZD6610 AZD1152 Thrombosis Prostate cancer Dyslipidemia / Diabetes Solid tumours AZD0837 Patrin (KuDOS) AZD8677
Slide 27: AstraZeneca pipeline by phase
Pre- LCM Phase III Phase II Phase I Clinical AZD7009 CytoFab (Protherics) AZD2479 (Avanir) AZD6244 (Array) Atrial fibrillation (IV) Severe sepsis Dyslipidemia Solid tumours AZD6140 Patrin (KuDOS) AZD6610 AZD1152 Arterial thrombosis Solid tumours Dyslipidemia / Diabetes Solid tumours AZD9684 ZD4054 A
Slide 28: Pipeline 2004 and 2005; Summary
Pipeline 2004 and 2005 LCM Phase III Number of products per phase Phase II Phase I Pre-Clinical 26 26 6 13 2 13 17 Translational 17 Clinical Science Focus 45 31 Full Year 2004 Full Year 2005 AstraZeneca Annual Results 2005 Summary Organisation strengthened Benefits delivered through Efficiency &
Slide 29: TC-1734 (Targacept) in memory impairment
Appendix TC-1734 (Targacept) in memory impairment Improved attention in AAMI subjects Improvement in attention (ms) 150 Active Placebo 100 50 0 -50 2 4 0 2 4 Day 1 Day 21 Improved memory in MCI subjects Improved memory in AAMI subjects Improvement in recognition 20 20 Improvement in recognition 10 A
Slide 30: AstraZeneca pipeline
LCM Phase III Phase II & I Pre-Clinical CV / GI AZD2479 Neuroscience (Avanir) Oncology / Infection Seroquel® AZD6610 Respiratory / Inflammation AZD8677 Seroquel® AZD7009 AZD3102 AZD4877 AZD3355 Seroquel® AZD9684 AZD1080 AZD7762 AZD9343 Seloken®/Toprol AZD5180 Seroquel® AZD0837 AZD2327 X-L® (Abgenix)