Astrazeneca Plc · LSE:AZN
Astrazeneca — AstraZeneca Pharma India — Investor Presentation (May 2013)
42 slides from Astrazeneca's investor presentation, May 7, 2013
Slide 1: AstraZeneca Pharma India Limited (AZPIL) Corporate Presentation
AstraZeneca Pharma India Limited (AZPIL) Corporate Presentation May 07, 2013
Slide 2: Disclaimer
Disclaimer This presentation by AstraZeneca Pharma India Limited (the “Company”) is solely for your information and may not be taken away, distributed, reproduced, or redistributed or passed on, directly or indirectly, to any other person (whether within or outside your organization or firm) or publ
Slide 3: Overview
Overview 1 AstraZeneca Plc Overview 2 AZPIL: Business Overview 3 AZPIL: Key Highlights 3
Slide 4: Overview: AstraZeneca Plc Overview
Overview 1 AstraZeneca Plc Overview 4
Slide 5: AstraZeneca Plc: Business Overview
AstraZeneca Plc: Business Overview Global research and innovation driven Integrated Strong Brand Portfolio biopharmaceutical Company focusing on the discovery, 8 brands with Sales of more than $1billion in 2012 development & commercialization of prescription medicines in 3 core therapeutic areas n
Slide 6: AstraZeneca Plc: Vision & Identified Growth Platforms
AstraZeneca Plc: Vision & Identified Growth Platforms Vision To be a global biopharmaceutical business delivering great medicines to patients through innovative science and excellence in development and commercialization A science-led, innovation strategy Broad R&D platform focused on 3 core T
Slide 7: AstraZeneca Plc: Focus on distinctive science in core therapy areas
AstraZeneca Plc: Focus on distinctive science in 3 core therapy areas Cardio- Metabolism Oncology Respiratory/ Infection & Neuroscience inflammation Vaccines Core TAs Opportunity-Driven Small Protein Biologics Immuno-therapies Molecules engineering Key Products and Brands Cardiovascular Gastrointest
Slide 8: AstraZeneca Plc: R&D Overview
AstraZeneca Plc: R&D Overview Over $4.5 billion investment in R&D in CY2012, with Key Strategic Centers for R&D activities nearly 9,800 employees working in R&D Division Primary location for Company's biologics R&D presence in 10 principal R&D centres in six activities, and Global Medicines; cou
Slide 9: AstraZeneca Plc: Major Interest Areas and Recent product launches / partners
AstraZeneca Plc: Major Interest Areas and Recent product launches / partners 9 Source: AstraZeneca Plc, Annual Reports and Investor Presentations
Slide 10: AstraZeneca Plc: Robust R&D Pipeline
AstraZeneca Plc: Robust R&D Pipeline… Phase I Phase II Phase III / Registration 26 NMEs 21 NMEs 6 NMEs Small Molecules Large Molecules Small Molecules Large Molecules Small Molecules Large Molecules AZD2014 moxetumomab* AZD4547 MEDI-551* lesinurad brodalumab* volitinib* MEDI0639* Olaparib# tremelimu
Slide 11: With Impressive Phase III Portfolio
…With Impressive Phase III Portfolio… Near Term Phase III & Registration NME pipeline volume (#) In 2013 – 2014, AstraZeneca Plc anticipates ~5 – 7 NME Phase III starts 10 potential NME submission opportunities between 9 - 10 now and 2016 8 By 2016, AstraZeneca Plc will reach its target 6 volu
Slide 12: New Medicines: Providing Attractive growth opportunities
…Providing Attractive growth opportunities AZD5069 benralizumab Brodalumab^ (2015) Potential peak year sales for fostamatinib (2013) lesinurad (2014) MEDI-551 naloxegol (2013) Over Olaparib# (2013) New Medicines $ 1Bn selumetinib sifalimumab / MEDI-546 tralokinumab AZD4547 ATM AVI CAZ AVI (2014) AZD
Slide 13: AstraZeneca Plc: Expanding partnership pipeline
AstraZeneca Plc: Expanding partnership pipeline Phase III/ Launched/ Phase II Registration Approved (2012) Oncology CNS Oncology Tremelimumab MEDI-575 Selumetinib Naloxegol RANMARK (Japan) Respiratory & Inflammation Diabetes Fostamatinib AMG139 AZD2115 AZD5423 AMG157 FORXIGA AMG181 AMG557 Lesinurad
Slide 14: Focus on Emerging markets – A platform for sustained growth
Focus on Emerging markets– A platform for sustained growth Emerging Market Strategy Emerging Markets Growth $ 5.8 bn Absolute CAGR $ Billion Invest Early in Key Accelerate Investment in Top Growth Markets 15 markets $ 3.9 bn 15% Build Share of Voice with Expand reach with multi- $1.7 bn 12% Best-in-
Slide 15: Overview: AZPIL Business Overview
Overview 2 AZPIL: Business Overview 15
Slide 16: AZPIL: Business Overview
AZPIL: Business Overview AZPIL is a subsidiary of AstraZeneca Pharmaceuticals AB FY13 Therapeutic Area-Wise Sales Contribution (%) Sweden (89.99% shareholding), which is in turn a wholly Oncology,12% Local Anaesthesia,4 owned subsidiary of AstraZeneca Plc, UK, and has been % Respiratory,11 % prese
Slide 17: AZPIL: History & Key Milestones
AZPIL: History & Key Milestones 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010-11 2012 IT Systems ERP system was Brilinta Start of Operations extended to Depots; Brilinta launched in Acquisition of majority HRIMS system was India from the global implemented shareholding of AZPIL portfolio Stake R
Slide 18: AZPIL: Key Therapy Areas & Brands
AZPIL: Key Therapy Areas & Brands Leading Brands Across Therapeutic Areas Maternal Cardiovascular Respiratory Oncology Infection Neuroscience Gastrointestinal Healthcare • Brilinta^ • Symbicort^ • Prostodin % • Zoladex ^ • Meronem^ • Diprivan^ • Neksium^ • Onglyza*^ • Bricanyl $ • Cerviprime % • Ari
Slide 19: AZPIL: Manufacturing Facilities
AZPIL: Manufacturing Facilities New Tablet Manufacturing Facility - Existing Formulation Facility Existing API Facility Formulations Capacity: 690 mn tablets Capacity: 3600 Kgs Capacity: 1.2 billion tablets per year Commercial Production Commercial Production Construction completed (Vali
Slide 20: AZPIL: Managing Director
AZPIL: Managing Director Mr. Sanjay Murdeshwar Sanjay, aged 46 years joined AZPIL as the Managing Director on May 02, 2013 and has over 17 years of diverse experience in the Pharmaceutical Industry working across various roles and regions with Bayer AG Most recently, he was working as the Vice P
Slide 21: AZPIL: Whole Time Director & VP – India Operations
AZPIL: Whole Time Director & VP – India Operations Mr. Robert Ian Haxton Rob, aged 43 years joined AZPIL as the Whole Time Director and Vice President – India Operations on February 01, 2013 and has over 20 years of diverse experience in the Pharmaceutical Industry working across various roles and
Slide 22: AZPIL: Non-Executive Directors (AZ Group)
AZPIL: Non-Executive Directors (AZ Group) Mr. Ian Brimicombe aged 49 years, is a graduate from King’s College, London. He has exposure on audit, tax and corporate finance at Coopers & Lybrand, London (now PricewaterhouseCoopers) from 1986, qualifying as a Chartered Accountant and a Chartered Tax Adv
Slide 23: AZPIL: Independent Directors
AZPIL: Independent Directors Mr. D E Udwadia, aged 73 years, holds Degree in BA (Hons) and LLB and also holds Master’s Degree in Political Science and History. He has over 48 years of active corporate law practice and wide-ranging professional experience. He is an Advocate and a Solicitor by profess
Slide 24: AZPIL: Key Event Update
AZPIL: Key Event Update In Q4FY12, AZPIL initiated a voluntary recall of twelve products following AZ Worldwide Audit Group’s (WWAG) quality audit, on account of which it faced supply issues in FY13, which are currently in the final stages of being remediated Voluntary Recall initiated in Remedial M
Slide 25: AZPIL: Non-Impacted Brands continue to deliver Resilient Performance
AZPIL: Non-Impacted Brands continue to deliver Resilient Performance 1 Brand-wise Market Share* and Ranking (Top 10 Brands) Ranking Brands Impacted due to Recall 6 out of the top 10 AZPIL brands rank amongst the top 3 in their respective therapeutic categories 2 1 1 2 3 3 3 11 9 3 3 3 3 2 4 10 6 9 6
Slide 26: Steady Recovery Under-way
AZPIL: Steady Recovery Under-way Remediation of Supply Issues enabling recovery across Key Impacted Brands Sales for Impacted Brands (In Rs. million) Products representing 8 – 10% of the revenues are being discontinued in the current financial year (FY14) 26 *Imdur sales were impacted between Q2FY13
Slide 27: AZPIL: Financial Overview
AZPIL: Financial Overview Total Income (Rs. million) Voluntary recall EBITDA (Rs. million) Voluntary 7,000 initiated 1,500 15 month recall initiated 2002-11 CAGR 16.7% 1,261 6,003 2002-11 CAGR 19.1% 6,000 period FY11 1,098 5,379 1,012 946 1,000 807 5,000 700 4,024 4,009 3,681 481 4,000 500 432 366 3
Slide 28: AZPIL: Financial Overview
AZPIL: Financial Overview Net worth (Rs. million) EPS (Rs.) / Return on Net worth EPS RoNW 2,000 1,893 1,797 80 64 1,800 1,593 1,600 60 1,445 39 40 36 1,417 34 34 40 25 27 30 1,400 1,272 25 23 26 14 17 19 1,162 20 10 10 10 1,200 4 8 987 955 998 1,000 0 2002 2003 2004 2005 2006 2007 2008 2009 FY11 FY
Slide 29: Overview: AZPIL Key Highlights
Overview 3 AZPIL: Key Highlights 29
Slide 30: AZPIL: Key Investment Highlights
AZPIL: Key Investment Highlights Leveraging Global Strength Strong Pipeline Potential Outstanding Parent profile providing Significant launches planned in India from significant technical & financial backing; global portfolio and partnerships. Consistent product launches from Parent’s portfolio S
Slide 31: AZPIL: Leveraging Global Strength
AZPIL: Leveraging Global Strength Product launches from Parent’s portfolio 2002 2003 2004 2005 2006 2007 2008 2009 FY11 FY12 FY13 Cardiovascular Crestor Brilinta Symbicort Respiratory Turbuhaler Antibiotic/ Relaunch Meronem Infection of Diprivan Arimidex Casodex Zoladex Oncology Zoladex Relaunch Fas
Slide 32: Strong Pipeline Potential
AZPIL: Strong Pipeline Potential Significant technical support and robust Global Pipeline & launches from collaborations offers significant future growth visibility Robust Global Pipeline World Class R&D and Technology Support Phase III/ Phase I Phase II Registration 26 NMEs 21 NMEs Investment >$4 b
Slide 33: AZPIL: Significant Growth Levers
AZPIL: Significant Growth Levers Favorably positioned to benefit from India’s fast growing Pharma Market Domestic Formulations Market (in Rs. Bn) Split by therapeutic segment Source: Industry Research India’s improving ranking in Global Pharma Space Expected CAGR of 14 - 17% over the next 5 years
Slide 34: Significant Growth Levers: Percent of Population
AZPIL: Significant Growth Levers Favorably positioned to benefit from India’s fast growing Pharma Market Household incomes* to drive healthcare spending Rising prevalence of several chronic diseases Percent of Population * Annual income Growing health insurance market Expanding healthcare delivery m
Slide 35: AZPIL: Significant Growth Levers
AZPIL: Significant Growth Levers Favorably positioned to benefit from India’s fast growing Pharma Market Catering to majority segments of the Indian Pharma Market Favorable product mix of AZPIL Therapeutic Segments 0% 20% 40% 60% 80% 100% (Rs. billion) 2006-07 2011-12E 2016-17P Anti Diabetic 12.4 36
Slide 36: AZPIL: High Corporate Governance Standards
AZPIL: High Corporate Governance Standards Stringent and superior global quality and manufacturing standards Voluntary Recall Undertook a voluntary recall of sterile products manufactured at its Bengaluru plant, following upholds Global AstraZeneca Worldwide Audit Group’s (WWAG) quality audit in
Slide 37: AZPIL: Re-focused for Delivery
AZPIL: Re-focused for Delivery Re-Focused to deliver products and performance Prior to the recall, AZPIL was one of the fastest growing MNC pharma companies in India Reintroduction of On account of the recall, AZPIL faced certain supply issues in FY2013, which are in the process of products bein
Slide 38: AZPIL: Re-focused for Delivery
AZPIL: Re-focused for Delivery Re-alignment of Manufacturing Strategy Tablet Manufacturing Facility The new tablet manufacturing facility is expected to commence commercial production in Q1FY2014 As on March 31, 2013, Rs. 737 million has been incurred towards the manufacturing facility, and an a
Slide 39: AZPIL: Long-Term Commitment to India
AZPIL: Long-Term Commitment to India In-line with the Global Emerging Market Strategy Present in India for more than 34 years Long-standing Existing formulations manufacturing facility commenced commercial production in 1982 and has presence in India been supplying products for the Indian and gl
Slide 40: AZPIL: Going Forward
AZPIL: Going Forward Company’s revenues to grow ahead of market over this period Re-establish its market position in the impacted products portfolio Return to profitability in the current financial year and deliver PBT margin in high teens from the next financial year National Pharmaceuticals Pricin
Slide 41: AZPIL: Assumptions Underlying Way Forward
AZPIL: Assumptions Underlying Way Forward The Indian Pharma market continues to grow in double digits over the next 2-3 years There are no adverse changes in the proposed NPPP (incremental), Patent product pricing, Pharma Marketing Policy, Patent Act or significant shift in government view on Pr
Slide 42: Thank You
Thank You AstraZeneca iN
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