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AstraZeneca PLC (AZN)

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Thursday 02 February, 2017

AstraZeneca PLC

AZN: FY16 and Q4 2016 Results

RNS Number : 8083V
AstraZeneca PLC
02 February 2017
 

AstraZeneca PLC

2 February 2017 07:00

 

Full-Year and Q4 2016 Results

Performance in line with expectations; 2017 has the potential to be a defining year

 

Financial Summary


FY 2016


Q4 2016


$m

% change

$m 

% change


CER1

Actual

CER

Actual

Total Revenue

23,002

(5)

(7)

5,585

(12)

(13)

Product Sales

21,319

(8)

(10)

5,260

(15)

(15)

Externalisation Revenue

1,683

59

58

325

77

69








Reported Operating Profit

4,902

9

19

2,533

n/m

n/m

Core Operating Profit2

6,721

(7)

(3)

2,026

15

30








Reported Earnings Per Share (EPS)

$2.77

9

24

$1.46

93

n/m

Core EPS

$4.31

(5)

1


$1.21

9

29

 

·     The fall in Product Sales primarily reflected the entry of Crestor generic medicines in the US; Crestor represents the last anticipated blockbuster3 patent expiry, ahead of significant late-stage pipeline news flow

·     Good progress on cost control in the year, reflecting the evolving shape of the business:

-     Reported and Core R&D cost growth of 2% to $5,890m and 5% to $5,631m, respectively, including the absorption of the R&D costs of Acerta Pharma and ZS Pharma

-     Reported and Core SG&A costs declined by 12% to $9,413m and by 9% to $8,169m, respectively

·      Reported EPS increased by 9% in the year to $2.77, reflecting a revaluation of acquisition-related liabilities. A 5% fall in Core EPS was driven by a corresponding rate of decline in Total Revenue

·      A second interim dividend of $1.90 per share has been declared, bringing the dividend for the full year to $2.80 per share. The Board reaffirms its commitment to the Company's progressive dividend policy

 

 

Commercial Highlights

The Growth Platforms grew by 5% in the year (Q4 2016: Up by 3%). Highlights included:

·      Emerging Markets: 6% growth (Q4 2016: Up by 7%) to $5,794m, supported by China, up by 10% to $2,636m

·      Diabetes: Growth of 11%, as Farxiga became the Company's largest-selling Diabetes medicine

·      Japan: A sales decline of 3% to $2,184m, reflecting the biennial price reduction in the year

·      Brilinta: Sales grew by 39% to $839m; on track to be a blockbuster medicine

·      Respiratory: A decline of 3% to $4,753m (Q4 2016: Down by 5%), reflecting US pricing pressure for Symbicort

·      New Oncology: Strong sales of $664m (Q4 2016: $216m); Tagrisso delivered sales of $423m in its first year

 

 

Achieving Scientific Leadership

The pipeline-driven progress of AstraZeneca continued in the year. Twelve potential new medicines are in

Phase III/under regulatory review, primarily within the three therapy areas of Oncology, Cardiovascular & Metabolic Diseases and Respiratory. The Oncology pipeline, which attracted over 40% of R&D investment in the year, is progressing ahead of the Company's expectations, in particular Tagrisso and the Immuno-Oncology programmes. The table below highlights successes in the late-stage pipeline since the last results announcement:

 

Regulatory Submission Acceptances

- durvalumab - bladder cancer (US)
- Tagrisso - lung cancer (AURA3 trial) (US, EU)
- Faslodex - breast cancer (1st line) (US, EU)
- roxadustat - anaemia (CN) (rolling submission)
- benralizumab - severe, uncontrolled asthma (US, EU)

Other Key Developments

- Priority Review Designation: durvalumab (US)
- Priority Review Designation: Tagrisso (US)

 

 

Pascal Soriot, Chief Executive Officer, commenting on the results said:

"Our financial results in the year were in line with expectations and reflected the ongoing transition of our company. We brought a sharper strategic focus to our three main therapy areas, boosting pipeline productivity further as we saw with Priority Review Designations for durvalumab and Tagrisso, as well as regulatory submission acceptances for durvalumab in bladder cancer and for benralizumab in severe, uncontrolled asthma. Our underlying business is growing as a new AstraZeneca emerges, driven by competitive franchises and Emerging Markets.

2017 has the potential to be a turning point for our company as we near the end of our patent-expiry period and bring new medicines to patients across the globe. We anticipate defining data, in particular from our outstanding pipeline of Immuno-Oncology and targeted treatments. This year we have the opportunity to launch several life-changing medicines for cancer, respiratory and metabolic diseases. It is an exciting time as we rapidly approach the inflection point for our anticipated return to long-term growth, built on the solid foundations of a science-led pipeline."

 

FY 2017 Guidance

The Company provides guidance on Total Revenue and Core EPS only. All measures in this section are at constant exchange rates1:

 

Total Revenue

A low to mid single-digit percentage decline

Core EPS

A low to mid teens percentage decline*

*The Core EPS guidance anticipates a normalised effective Core tax rate of 16-20% (FY 2016: 11%).

 

Guidance is subject to base-case assumptions of the progression of the pipeline and the extensive level of news flow listed on the following page. Variations in performance between quarters can be expected to continue, with year-on-year comparisons expected to ease in the second half of FY 2017, when the impact of the entry of Crestor generic medicines in the US will annualise.

 

The Company presents Core EPS guidance. It is unable to provide guidance on a Reported/GAAP basis because the Company cannot reliably forecast material elements of the Reported/GAAP result, including the fair-value adjustments arising on acquisition-related liabilities, intangible-asset impairment charges and legal-settlement provisions. Please refer to the section 'Cautionary Statements Regarding Forward-Looking Statements' at the end of this announcement.

 

In addition to the guidance listed above, the Company also provides indications in other areas of the Income Statement. The sum of Externalisation Revenue and Other Operating Income in FY 2017 is anticipated to be ahead of that in FY 2016. Sustainable and ongoing income4 is expected to increase further as a proportion of Externalisation Revenue in FY 2017. Core R&D costs are expected to be broadly in line with those in FY 2016 and the Company anticipates a further reduction in Core SG&A costs, reflecting the evolving shape of the business. A full explanation of these items is listed in the Operating & Financial Review.

 

FY 2017 Currency Impact

Based only on average exchange rates in January 2017 and the Company's published currency sensitivities, there is expected to be a low single-digit percentage adverse impact from currency movements on Total Revenue and Core EPS in the year. Further details on currency sensitivities are contained within the Operating and Financial Review.

 

Notes

1.   All growth rates and guidance are shown at constant exchange rates (CER) unless specified otherwise.

2.   See the Operating and Financial Review for a definition of Core financial measures and a reconciliation of Core to Reported financial measures.

3.   The term 'blockbuster' is defined as a medicine with Product Sales in excess of $1bn over a period of 12 months.

4.   Sustainable and ongoing income is defined as Externalisation Revenue excluding upfront receipts.

 

 

Pipeline: Forthcoming Major News Flow

Innovation is critical to addressing unmet patient needs and is at the heart of the Company's growth strategy. The focus on research and development is designed to yield strong results from the pipeline.

 

H1 2017

Faslodex - breast cancer (1st line): Regulatory decision (JP)
Lynparza - ovarian cancer (2nd line): Regulatory submission

Lynparza - breast cancer: Data readout

Tagrisso - lung cancer (AURA3): Regulatory decision (US)
durvalumab - bladder cancer: Regulatory decision (US)

durva +/- treme - lung cancer (ARCTIC): Data readout

acalabrutinib - blood cancer: Data readout, regulatory submission (US) (Phase II)#


Bydureon - autoinjector: Regulatory submission (US)

saxagliptin/dapagliflozin - type-2 diabetes: Regulatory decision (US)

ZS-9 (sodium zirconium cyclosilicate) - hyperkalaemia: Regulatory decision (US, EU)

 

Bevespi - COPD: Regulatory submission (EU)

benralizumab - severe, uncontrolled asthma: Regulatory submission (JP)

Mid-2017

durva +/- treme - lung cancer (MYSTIC): Data readout

H2 2017

Faslodex - breast cancer (1st line): Regulatory decision (US, EU)

Lynparza - breast cancer: Regulatory submission

Lynparza - ovarian cancer (1st line): Data readout

Tagrisso - lung cancer: Regulatory decision (CN)
Tagrisso - lung cancer (AURA3): Regulatory decision (EU)

Tagrisso - lung cancer (1st line): Data readout

durvalumab - lung cancer (PACIFIC): Data readout, regulatory submission (US)

durva +/- treme - lung cancer (MYSTIC): Regulatory submission

durva +/- treme - lung cancer (ARCTIC): Regulatory submission

durva +/- treme - head & neck cancer (KESTREL): Data readout
moxetumomab - leukaemia: Data readout

 

benralizumab - severe, uncontrolled asthma: Regulatory decision (US)

tralokinumab - severe, uncontrolled asthma: Data readout

2018

Lynparza - ovarian cancer (1st line): Regulatory submission

Tagrisso - lung cancer (1st line): Regulatory submission

durva + treme - lung cancer (NEPTUNE): Data readout

durva +/- treme - head & neck cancer (KESTREL): Regulatory submission

durva +/- treme - head & neck cancer (EAGLE): Data readout, regulatory submission

durva +/- treme - bladder cancer (DANUBE): Data readout, regulatory submission

moxetumomab - leukaemia: Regulatory submission

selumetinib - thyroid cancer: Data readout, regulatory submission

 

Brilinta - type-2 diabetes / coronary artery disease: Data readout, regulatory submission

Bydureon - cardiovascular (CV) outcomes trial: Data readout, regulatory submission

roxadustat - anaemia: Data readout (AstraZeneca-sponsored trials), regulatory submission

 

Duaklir - COPD: Regulatory submission (US)
benralizumab
- severe, uncontrolled asthma: Regulatory decision (EU)

tralokinumab - severe, uncontrolled asthma: Regulatory submission

PT010 - COPD: Data readout, regulatory submission

 

anifrolumab - lupus: Data readout

The term 'data readout' in this section refers to Phase III data readouts, unless specified otherwise.

#Potential fast-to-market opportunity ahead of randomised, controlled trials.

 

Results Presentation

A presentation and accompanying live webcast for investors and analysts, hosted by management, will begin at 12.30pm UK time today. Details can be accessed via astrazeneca.com/investors.

 

Reporting Calendar

The Company intends to publish its first quarter financial results on 27 April 2017.

 

About AstraZeneca

AstraZeneca is a global, science-led biopharmaceutical company that focuses on the discovery, development and commercialisation of prescription medicines, primarily for the treatment of diseases in three main therapy areas - Oncology, Cardiovascular & Metabolic Diseases and Respiratory. The Company also is selectively active in the areas of autoimmunity, neuroscience and infection. AstraZeneca operates in over 100 countries and its innovative medicines are used by millions of patients worldwide. For more information, please visit www.astrazeneca.com and follow us on Twitter @AstraZeneca.

 

Media Enquiries

Esra Erkal-Paler

UK/Global

+44 203 749 5638

Neil Burrows

UK/Global

+44 203 749 5637

Vanessa Rhodes

UK/Global

+44 203 749 5736

Karen Birmingham

UK/Global

+44 203 749 5634

Rob Skelding

UK/Global

+44 203 749 5821

Jacob Lund

Sweden

+46 8 553 260 20

Michele Meixell

US

+1 302 885 2677

Investor Relations

Thomas Kudsk Larsen

 

 

+44 203 749 5712

Craig Marks

Finance, Fixed Income, M&A

+44 7881 615 764

Henry Wheeler

Oncology

+44 203 749 5797

Mitchell Chan

Oncology

+1 240 477 3771

Lindsey Trickett

Cardiovascular & Metabolic Diseases

+1 240 543 7970

Nick Stone

Respiratory

+44 203 749 5716

Christer Gruvris

Autoimmunity, Neuroscience & Infection

+44 203 749 5711

US toll free


+1 866 381 7277

 

 

Operating And Financial Review

_______________________________________________________________________________________

All narrative on growth and results in this section is based on CER unless stated otherwise. Financial figures are in US$ millions ($m). The performance shown in this announcement covers the twelve and three-month periods to 31 December 2016 (the year and the quarter, respectively) compared to the twelve and three-month periods to 31 December 2015.

 

Core measures, which are presented in addition to Reported financial information, are non-GAAP measures provided to enhance understanding of the Company's underlying financial performance. Core financial measures are adjusted to exclude certain significant items, such as:

 

-     amortisation and impairment of intangible assets, including impairment reversals but excluding any charges relating to IT assets

-     charges and provisions related to global restructuring programmes (this will include such charges that relate to the impact of global restructuring programmes on capitalised IT assets)

-     other specified items, principally comprising legal settlements and acquisition-related costs, which include fair-value adjustments and the imputed finance charge relating to contingent consideration on business combinations

 

Details on the nature of these measures are provided on page 64 of the Annual Report and Form 20-F Information 2015.

 

Total Revenue

 


FY 2016

Q4 2016

$m

% CER change

$m

% CER change

Product Sales

21,319

(8)

5,260

(15)

Externalisation Revenue

1,683

59

325

77






Total Revenue

23,002

(5)

5,585

(12)

 

Based on actual exchange rates, Total Revenue declined by 7% in the year and by 13% in the quarter.

 

Product Sales

The level of decline in Product Sales was driven by the impact of the entry of Crestor generic medicines in the US, as well as the reducing impact of Nexium generic medicines in the US. Sales of Crestor and Nexium in the US declined by 57% and 39%, respectively. Overall US Product Sales declined by 22% in the year to $7,365m (Q4 2016: Down by 37% to $1,618m). Product Sales in Europe declined by 3% in the year to $5,064m (Q4 2016: Down by 3% to $1,332m).

 

Within Product Sales, the Growth Platforms grew by 5% in the year, representing 63% of Total Revenue:

 

Growth Platform

FY 2016

Q4 2016

Product Sales ($m)

% CER change

Product Sales ($m)

% CER change

Emerging Markets

5,794

6

1,486

7

Respiratory

4,753

(3)

1,210

(5)

Diabetes

2,427

11

598

3

Japan

2,184

(3)

591

(5)

Brilinta

839

39

236

37

New Oncology1

664

n/m

216

n/m






Total2

14,491

5

3,728

3

1New Oncology comprises Lynparza, Iressa (US) and Tagrisso.

2Total Product Sales for Growth Platforms adjusted to remove duplication on a medicine and regional basis. 

 

Externalisation Revenue

Where AstraZeneca retains a significant economic interest in medicines or potential new medicines, income from transactions is reported as Externalisation Revenue in the Company's financial statements. The table below illustrates the level of sustainable and ongoing income1 within the total of Externalisation Revenue. Sustainable and ongoing income is anticipated to grow as a proportion of Externalisation Revenue over time.

 


FY 2016

Q4 2016


$m

% of Total

% change

$m

% of Total

% change


CER

Actual

CER

Actual

Royalties2

119

7

69

58

45

14

222

230

Milestones

237

14

35

33

10

3

(87)

(87)

Sub-total Sustainable and Ongoing Externalisation Revenue

356

21

45

40

55

17

(37)

(40)










Upfront Receipts

1,327

79

63

63

270

83

172

171

Total Externalisation Revenue

1,683

100

59

58

325

100

77

69

1Sustainable and ongoing income is defined as Externalisation Revenue excluding upfront receipts.

2Royalties in FY 2016 included those derived from the Aspen Global Incorporated (Aspen) transaction highlighted below.

 

Externalisation Revenue recognised in the year amounted to $1,683m. Highlights included:

 

Medicine

Partner

Region

$m

Anaesthetics

Aspen - initial revenue

Global (excl. US)

520

Plendil

China Medical System Holdings Ltd -commercialisation rights - initial revenue

China

298

Toprol-XL

Aralez Pharmaceuticals Trading DAC (Aralez) - initial revenue

US

175

Tralokinumab - atopic dermatitis

LEO Pharma A/S (LEO Pharma) - initial revenue

Global

115

AZD3293

Eli Lilly and Company (Lilly) - milestone revenue

Global

100

Nexium OTC 20mg

Pfizer Inc. (Pfizer) - milestone revenue

Global

93

Moventig

ProStrakan Group plc - commercialisation rights - initial and milestone revenue

EU

78

Others



304

Total



1,683

 

Examples of sustainable and ongoing Externalisation Revenue streams are shown below:

 

Announcement Date

Medicine

Partner

Region

Externalisation Revenue

4 October 2016

Toprol-XL

Aralez

US

·    Initial $175m milestone

·    Up to $48m milestone and sales-related revenue

·    Mid-teen percentage royalties on sales

1 July 2016

Tralokinumab - atopic dermatitis

LEO Pharma

Global

·    Initial $115m milestone

·    Up to $1bn in commercially-related milestones

·    Up to mid-teen tiered percentage royalties on sales

9 June 2016

Anaesthetics

Aspen

Global (excl. US)

·    Initial $520m milestone

·    Up to $250m in sales-related revenue

·    Double-digit percentage trademark royalties on sales

1 September 2015

Brodalumab - psoriasis

Valeant Pharmaceuticals International, Inc. (Valeant)

Global, later

amended to US

·    Initial $100m milestone

·    Pre-launch milestone up to $170m

·    Sales-related royalties up to $175m

19 March 2015

Movantik

Daiichi Sankyo

US

·    Initial $200m milestone

·    Up to $625m in Product Sales-related revenue

 

 

Product Sales

_______________________________________________________________________________________

The performance of key medicines is shown below, with a geographical split shown in Notes 8 and 9.

 


FY 2016

Q4 2016


$m

% of Total

% change

$m

% change


CER

Actual

CER

Actual

Oncology








Iressa

513

2

(5)

(6)

118

(11)

(9)

Tagrisso

423

2

n/m

n/m

147

n/m

n/m

Lynparza

218

1

n/m

n/m

62

72

72









Legacy:








Faslodex

830

4

19

18

222

19

20

Zoladex

816

4

-

-

235

13

19

Casodex

247

1

(9)

(7)

60

(8)

(5)

Arimidex

232

1

(6)

(7)

57

(7)

(5)

Others

104

-

(26)

(21)

29

-

12

Total Oncology

3,383

16

20

20

930

26

30

Cardiovascular & Metabolic Diseases








Brilinta

839

4

39

36

236

37

36

Farxiga

835

4

72

70

239

57

57

Onglyza

720

3

(6)

(8)

149

(21)

(22)

Bydureon

578

3

-

-

142

(8)

(8)

Byetta

254

1

(19)

(20)

55

(22)

(24)









Legacy:








Crestor

3,401

16

(32)

(32)

631

(53)

(52)

Seloken/Toprol-XL

737

3

9

4

178

14

11

Atacand

315

1

(8)

(13)

81

(5)

(6)

Others

437

2

(26)

(28)

100

(31)

(32)

Total Cardiovascular & Metabolic Diseases

8,116

38

(13)

(14)

1,811

(26)

(26)

Respiratory








Symbicort

2,989

14

(10)

(12)

740

(13)

(14)

Pulmicort

1,061

5

8

5

288

8

5

Tudorza/Eklira

170

1

(9)

(11)

36

(23)

(23)

Daliresp/Daxas

154

1

48

48

41

28

28

Duaklir

63

-

n/m

n/m

19

58

58

Others

316

1

27

22

86

37

32

Total Respiratory

4,753

22

(3)

(5)

1,210

(5)

(6)

Other








Nexium

2,032

10

(18)

(19)

491

(15)

(13)

Seroquel XR

735

3

(27)

(28)

118

(51)

(51)

Synagis

677

3

2

2

302

10

10

Losec/Prilosec

276

1

(17)

(19)

59

(23)

(23)

FluMist/Fluenz

104

-

(59)

(64)

67

(60)

(65)

Movantik/Moventig

91

-

n/m

n/m

26

73

73

Others

1,152

5

(20)

(23)

246

(34)

(35)

Total Other

5,067

24

(19)

(20)

1,309

(25)

(25)

Total Product Sales

21,319

100

(8)

(10)

5,260

(15)

(15)

 

 

Product Sales Summary

_______________________________________________________________________________________

 

ONCOLOGY

Full-year sales of $3,383m; up by 20%.

Oncology sales represented 16% of Total Product Sales.

 

Iressa (full-year sales of $513m; down by 5%)

Sales in the US amounted to $23m, with sales in Europe declining by 5% to $120m. The Company prioritised the launch of Tagrisso in the year, given its potential impact for patients and the Company. Emerging Markets sales (defined in the Regional Product Sales section on page 13) declined by 10% to $233m. China sales declined by 16% to $116m, a result of a new price following national reimbursement listing obtained in June 2016. Strong competition from branded and generic medicines in Korea also contributed to the decline.

 

Tagrisso (full-year sales of $423m)

In the second half of the year, sales of Tagrisso surpassed those of Iressa, with Tagrisso becoming the leading AstraZeneca medicine for the treatment of lung cancer. Regulatory approvals were granted in a number of markets, including Brazil, Hong Kong, Singapore, Taiwan and the United Arab Emirates; the Company anticipates additional regulatory approvals and reimbursement decisions in due course. To date, Tagrisso has received regulatory approval in 46 countries worldwide.

 

Sales in the US amounted to $254m. After regulatory approval in the EU and Japan earlier in the year, sales in the year were $76m in Europe and $82m in Japan.

On 27 December 2016, a third-party, blood-based companion-diagnostic test for Tagrisso was approved in Japan. The test is designed to confirm the presence of a T790M mutation in patients. Similarly, the blood-based companion-diagnostic partner test for Tagrisso was approved in the US on 29 September 2016.

 

Lynparza (full-year sales of $218m)

Lynparza was available to patients in 31 countries by the end of 2016, with regulatory reviews underway in seven additional countries including Russia, Brazil and Singapore. Almost 5,000 patients globally have been prescribed Lynparza since the first launch in December 2014. Sales in the US increased by 81% in the year to $127m; Lynparza now has a high market penetration. Sales in Europe increased to $81m, following a number of successful launches.

 

Legacy: Faslodex (full-year sales of $830m; up by 19%)

Sales in the US in the year increased by 23% to $438m, mainly driven by an expanded label in March 2016 for 2nd-line advanced or metastatic breast cancer, in combination with palbociclib. Europe full-year sales increased by 11% to $228m. An increase in demand in Japan led to sales growth of 12% to $63m. China sales, up by 91% to $20m, supported Emerging Markets sales of $96m, representing an increase of 25%.

 

Legacy: Zoladex (full-year sales of $816m; stable)

The stable performance was attributed to Europe sales (down by 4% to $156m) and Established Rest Of World (ROW) sales (down by 7% to $270m) being offset by favourable sales performances in the US (up by 25% to $35m) and Emerging Markets (up by 6% to $355m).

 

CARDIOVASCULAR & METABOLIC DISEASES

Full-year sales of $8,116m; down by 13%.

Cardiovascular & Metabolic Diseases sales represented 38% of Total Product Sales.

 

Brilinta (full-year sales of $839m; up by 39%)

Sales of Brilinta in the US were $348m, representing an increase of 45%. The performance reflected updated preferred guidelines from the American College of Cardiology and the American Heart Association in the first half of the year; Brilinta remained the branded oral anti-platelet market leader in the US. Brilinta's new-to-brand weekly prescription market share jumped to around 15% at the end of the year, representing an increase of around three percentage points.

 

Full-year sales of Brilique in Europe increased by 15% to $258m, reflecting indication leadership across a number of markets. In the year, the German Institute for Quality and Efficiency in Healthcare (IQWiG) gave its assessment of the additional benefit from Brilique at the 60mg dose as tested in the PEGASUS trial, as did the National Institute for Health and Clinical Excellence in England, UK.

 

Emerging Markets full-year sales grew by 80% to $189m, with China sales more than doubling. China represented 47% of Emerging Markets sales of the medicine at $89m, despite it not being included on the National Reimbursement Drug List. The Company anticipates inclusion in due course. Growth was underpinned by a combination of strong levels of hospital-listing expansion and increased use in existing hospitals.

 

Farxiga (full-year sales of $835m; up by 72%)

In the year, sales of Farxiga surpassed those of Onglyza and Farxiga became the leading AstraZeneca medicine for the treatment of diabetes, consolidating its position as global leader in the SGLT2 class.

 

Sales of Farxiga in the US increased by 75% to $457m, primarily reflecting overall market growth and a higher net price. A stronger emphasis on promotional activity and improved levels of patient access resulted in market-share growth. Full-year sales of Forxiga in Europe increased by 52% to $187m, as the medicine continued to lead the growing class. Emerging Markets sales increased by 96% to $133m, driven by ongoing launches and improved access. In particular, strong performances were seen in the Asia-Pacific region (up by 108% to $52m), Brazil (up by 50% to $28m), and the Middle East, Africa & Others region (up to $32m).

 

Onglyza (full-year sales of $720m; down by 6%)

Sales in the US declined by 10% to $376m, as the Company prioritised sales and marketing resources towards Farxiga. Continued competitive pressures in the DPP-4 class led to lower market share but were partially offset by reduced levels of utilisation of patient-access programmes. Full-year sales in Europe declined by 5% to $132m and by 4% in Emerging Markets to $142m, again reflecting the Company's focus on Farxiga.

 

In the quarter, global sales declined by 21%, due to adverse pressures on the DPP-4 class and reflecting an acceleration of the previously-mentioned market dynamics.

 

Bydureon/Byetta (full-year sales of $832m; down by 7%)

Combined full-year US sales for Bydureon/Byetta were $627m. Bydureon sales in the US declined by 4% to $463m, representing 74% of total Bydureon/Byetta US sales. Around 75% of sales came from the new dual-chamber pen compared to the prior tray presentation. The decline in US Byetta sales of 22% to $164m was attributed to the Company's promotional focus on Bydureon. The decline in both Bydureon and Byetta US sales reflected lower net pricing; a regulatory submission for the new Bydureon autoinjector is anticipated in the US in the first half of 2017.

 

Full-year sales in Europe increased by 3% to $145m, reflecting the Company's ongoing effort to expand its Diabetes presence. Full-year sales of Byetta and Bydureon in Emerging Markets increased by 13% to $24m and decreased by 25% to $4m, respectively. On 10 October 2016, AstraZeneca entered into a strategic collaboration with 3SBio Inc. (3SBio) for the rights to commercialise Bydureon and Byetta in the Chinese market. The agreement allowed the Company to benefit from 3SBio's established local expertise in injectable medicines as well as focus on its oral type-2 diabetes medicines.

 

Legacy: Crestor (full-year sales of $3,401m; down by 32%)

In the US, Crestor full-year sales declined by 57% to $1,223m, reflecting the market entry of Crestor generic medicines. Sales in the quarter declined by 88% to $95m. In Europe, full-year sales declined by 4% to $866m, reflecting the increasing use of generic medicines. In contrast, Crestor consolidated its position as the leading statin in Japan, with full-year sales stable at $521m. Full-year sales in China grew by 27% to $311m, while Russia sales grew by 28% to $29m.

 

RESPIRATORY

Full-year sales of $4,753m; down by 3%.

Respiratory sales represented 22% of Total Product Sales.

 

Symbicort (full-year sales of $2,989m; down by 10%)

Full-year sales in the US declined by 18% to $1,242m. This primarily reflected the impact of the continued effects of pricing pressure from managed-care access within the ICS/LABA class. Competition also remained intense from other classes. In Europe, full-year sales declined by 12% to $909m, primarily a result of competition from branded and analogue medicines. The performance improved during the year, with Q4 2016 sales in Europe declining by only 3% to $230m.

 

In contrast, full-year Emerging Markets sales grew by 10% to $402m, reflecting sales growth in China of 32% to $156m and Latin America (ex-Brazil) sales growth of 12% to $37m.

 

Symbicort continued to lead the global market by volume within the class; the medicine provides a platform for the launch of Bevespi and potential launch of benralizumab.

 

Pulmicort (full-year sales of $1,061m; up by 8%)

Pulmicort returned to being a blockbuster medicine in the year.

 

Strong underlying volume growth in Emerging Markets drove a 21% sales increase in that region to $698m. Emerging Markets, representing 66% of Pulmicort sales, more than offset sales declines in the US, Europe and Established ROW. China sales increased by 24% to $570m and represented 54% of sales of Pulmicort. Volume demand in China partly reflected the long-term increase in China of acute chronic obstructive pulmonary disease (COPD) and paediatric asthma. AstraZeneca continued its expansion of treatment centres and provided increased access to home-based patient-care systems.

 

Tudorza/Eklira (full-year sales of $170m; down by 9%)

Sales in the US declined by 25% to $77m, reflecting adverse market demand, limited Medicare Part D access and the focus on the launch of Bevespi. Sales in Europe increased by 9% to $83m.

 

Daliresp/Daxas (full-year sales of $154m; up by 48%)

Sales in the US increased by 29% to $134m in the year, driven primarily by favourable market penetration. US sales represented 87% of global sales. ROW sales rights were added in May 2016 and, since completion, Daxas sales in Europe amounted to $15m.

 

Duaklir (full-year sales of $63m)

Duaklir has been launched successfully in excess of 25 countries; sales more than doubled in the year. This followed the strategic transaction with Almirall, S.A., which was completed in October 2014.

 

Bevespi

Bevespi Aerosphere inhalation aerosol was launched commercially in the US in January 2017 and is available in pharmacies for the long-term, maintenance treatment of airflow obstruction in patients with COPD. It is the only LAMA/LABA combination treatment to be delivered in a pressurised metered-dose inhaler (pMDI) and the first FDA-approved therapy to be formulated with AstraZeneca's co-suspension delivery technology, a focus of the Company's future-platform development for respiratory-disease combination therapies. Bevespi also demonstrated a 381mL improvement in peak inspiratory capacity, a potentially differentiating factor.

 

OTHER

Full-year sales of $5,067m; down by 19%.

Other sales represented 24% of Total Product Sales.

 

Nexium (full-year sales of $2,032m; down by 18%)

Sales in the US declined by 39% to $554m in the year, reflecting lower demand and inventory de-stocking, which followed the loss of exclusivity in 2015. Sales in Europe declined by 11% to $251m, and Emerging Markets sales decreased 3% to $690m. Japan sales declined by 4% to $436m, reflecting the mandated biennial price reduction, effective from April 2016.

 

Seroquel XR (full-year sales of $735m; down by 27%)

Sales of Seroquel XR in the US declined by 28% to $515m in the year (Q4 2016: Down by 60% to $71m). Since 1 November 2016, two companies have launched generic medicines in the US. Full-year sales of Seroquel XR in Europe declined by 32% to $134m reflecting the impact of generic-medicine competition.

 

Synagis (full-year sales of $677m; up by 2%)

Sales in the US increased by 14% to $325m for the full year due to greater market demand. Sales to AbbVie Inc., which is responsible for the commercialisation of Synagis in over 80 countries outside the US, declined by 7% to $352m.

 

FluMist/Fluenz (full-year sales of $104m; down by 59%)

The Company confirmed on 23 June 2016 that the Advisory Committee on Immunization Practices (ACIP) of the US Centers for Disease Control and Prevention had provided its interim recommendation not to use FluMist Quadrivalent Live Attenuated Influenza Vaccine (FluMist Quadrivalent) in the US for the 2016-2017 influenza season.

 

The Company wrote down the value of its inventory of FluMist by $47m in the year, which was reflected within the Cost of Sales. Full-year sales of FluMist in the US declined by 84% to $33m. Europe sales increased by 3% in the year to $64m.

 

 

Regional Product Sales

_______________________________________________________________________________________

 


FY 2016

Q4 2016


$m

% of Total

% change

$m

% change


CER

Actual

CER

Actual

US

7,365

35

(22)

(22)

1,618

(37)

(37)









Europe

5,064

24

(3)

(5)

1,332

(3)

(6)









Established ROW1

3,096

15

(4)

2

824

(6)

5


Japan

2,184

10

(3)

8

591

(5)

9


Canada

497

2

(2)

(7)

126

(5)

(6)


Other Established ROW

415

2

(10)

(12)

107

(10)

(4)









Emerging Markets2

5,794

27

6

-

1,486

7

4


China

2,636

12

10

4

609

8

2


Ex. China

3,158

15

3

(4)

877

6

5









Total

21,319

100

(8)

(10)

5,260

(15)

(15)

1 Established ROW comprises Japan, Canada, Australia and New Zealand.

2 Emerging Markets comprises all remaining Rest of World markets, including Brazil, China, India, Mexico, Russia and Turkey.

 

US (full-year sales of $7,365m; down by 22%)

The full-year decline in US sales reflected the competition from Crestor generic medicines that entered the US market from July 2016. Unfavourable managed-care pricing and continued competitive intensity also impacted sales of Symbicort.

 

Europe (full-year sales of $5,064m; down by 3%)

Strong growth in sales of Forxiga (up by 52% to $187m) and Brilique (up by 15% to $258m) was more than offset by a 12% decline in Symbicort sales to $909m. However, Symbicort maintained its position as the number one ICS/LABA medicine by volume, despite competition from branded and analogue medicines. Lynparza and Tagrisso sales increased to $81m and $76m respectively.

 

Established ROW (full-year sales of $3,096m; down by 4%)

Full-year sales of Forxiga in Established ROW increased by 72% to $58m. Nexium sales declined by 10% to $537m.

 

Japan sales declined by 3% to $2,184m, reflecting the biennial price reduction, effective from April 2016, of around 6%. The decline was partly mitigated by stable sales of Crestor of $521m in the year. Since the launch of Tagrisso in Japan in May 2016, sales amounted to $82m. 

 

Emerging Markets (full-year sales of $5,794m; up by 6%)

Emerging Markets, representing 27% of global Product Sales, is the second-largest sales region for AstraZeneca.

 

Sales growth for the year in Emerging Markets was impacted by challenging macro-economic conditions in Latin America, where ex-Brazil full-year sales declined by 7% to $516m. The effect of reductions in Saudi Arabian governmental healthcare spending, as well as the reduction of AstraZeneca's activities in Venezuela, also adversely impacted sales. China sales, however, grew by 10% to $2,636m, representing 45% of Emerging Markets sales in the year.

 

Sales in Brazil increased by 2% to $348m, reflecting the strong performances of Forxiga (up by 50% to $28m), Oncology medicines (up by 1% to $82m) and Seloken (up by 6% to $63m). Russia sales increased by 13% to $233m, led by strong performances in Cardiovascular & Metabolic Diseases medicine sales (up by 38% to $80m).

A number of AstraZeneca medicines were externalised or disposed of in the year, adversely impacting the level of Product Sales:

Medicine

Region

Externalisation / Disposal Completion Date

FY 2015
Impacted Region
Product Sales ($m)

Bydureon & Byetta

China

11 October 2016

15

Anaesthetics

Global (excl. US)

1 September 2016

594

Plendil

China

29 February 2016

189

Moventig

Europe

1 March 2016

1

Toprol-XL

US

31 October 2016

89

Imdur

Global (excl. US)

3 May 2016

55





Total



943

 

 

Financial Performance

______________________________________________________________________________________

 

Year

Reported

% change


Core

% change

FY
2016

FY
2015

CER

Actual


FY 2016

FY

2015

CER

Actual

Product Sales

21,319

23,641

(8)

(10)


21,319

23,641

(8)

(10)

Externalisation Revenue

1,683

1,067

59

58


1,683

1,067

59

58

Total Revenue

23,002

24,708

(5)

(7)


23,002

24,708

(5)

(7)











Cost of Sales

(4,126)

(4,646)

(7)

(11)


(3,872)

(4,119)

(2)

(6)











Gross Profit

18,876

20,062

(5)

(6)


19,130

20,589

(6)

(7)

Gross Margin1

80.8%

80.3%

-0.1

+0.5


82.0%

82.6%

-1.1

-0.6











Distribution Expense

(326)

(339)

1

(4)


(326)

(339)

1

(4)

% Total Revenue

1.4%

1.4%

-

-


1.4%

1.4%

-

-

R&D Expense

(5,890)

(5,997)

2

(2)


(5,631)

(5,603)

5

-

% Total Revenue

25.6%

24.3%

-2

-1


24.5%

22.7%

-2

-2

SG&A Expense

(9,413)

(11,112)

(12)

(15)


(8,169)

(9,265)

(9)

(12)

% Total Revenue

40.9%

45.0%

+3

+4


35.5%

37.5%

+1

+2

Other Operating Income

1,655

1,500

12

10


1,717

1,520

14

13

% Total Revenue

7.2%

6.1%

+1

+1


7.5%

6.2%

+1

+1











Operating Profit

4,902

4,114

9

19


6,721

6,902

(7)

(3)

% Total Revenue

21.3%

16.7%

+3

+5


29.2%

27.9%

-

+1











Net Finance Expense

(1,317)

(1,029)

37

28


(661)

(505)

46

31

Joint Ventures

(33)

(16)




(33)

(16)













Profit Before Tax

3,552

3,069

-

16


6,027

6,381

(11)

(6)

Taxation

(146)

(243)




(658)

(990)



Tax Rate %

4%

8%




11%

16%



Profit After Tax

3,406

2,826

6

21


5,369

5,391

(6)

-











Non-controlling Interests

93

(1)




86

(1)



Net Profit

3,499

2,825

9

24


5,455

5,390

(5)

1











Weighted Average Shares

1,265

1,264




1,265

1,264













Earnings Per Share ($)

2.77

2.23

9

24


4.31

4.26

(5)

1

1 Gross Margin reflects Gross Profit derived from Product Sales, divided by Product Sales

2 All financial figures, except Earnings Per Share, are in $ millions ($m). Weighted Average Shares are in millions.

 

Quarter

Reported

% change


Core

% change

Q4 2016

Q4
2015

CER

Actual


Q4
2016

Q4 2015

CER

Actual

Product Sales

5,260

6,207

(15)

(15)


5,260

6,207

(15)

(15)

Externalisation Revenue

325

192

77

69


325

192

77

69

Total Revenue

5,585

6,399

(12)

(13)


5,585

6,399

(12)

(13)











Cost of Sales

(1,160)

(1,269)

(2)

(9)


(1,087)

(1,209)

(4)

(10)











Gross Profit

4,425

5,130

(15)

(14)


4,498

5,190

(14)

(13)

Gross Margin1

77.9%

79.6%

-3.1

-1.7


79.3%

80.5%

-2.6

-1.2











Distribution Expense

(83)

(99)

(11)

(16)


(83)

(99)

(11)

(16)

% Total Revenue

1.5%

1.5%

-

-


1.5%

1.5%

-

-

R&D Expense

(1,543)

(1,746)

(5)

(12)


(1,481)

(1,567)

2

(5)

% Total Revenue

27.6%

27.3%

-2

-


26.5%

24.5%

-4

-2

SG&A Expense

(1,386)

(2,668)

(44)

(48)


(2,050)

(2,461)

(14)

(17)

% Total Revenue

24.8%

41.7%

+15

+17


36.7%

38.5%

+1

+2

Other Operating Income

1,120

471

n/m

n/m


1,142

493

n/m

n/m

% Total Revenue

20.1%

7.4%

+13

+13


20.4%

7.7%

+13

+13











Operating Profit

2,533

1,088

n/m

n/m


2,026

1,556

15

30

% Total Revenue

45.4%

17.0%

+23

+28


36.3%

24.3%

+8

+12









-.


Net Finance Expense

(339)

(279)

36

22


(172)

(150)

36

15

Joint Ventures

(11)

(7)




(11)

(7)













Profit Before Tax

2,183

802

n/m

n/m


1,843

1,399

13

32

Taxation

(366)

6




(333)

(200)



Tax Rate %

17%

(1)%




18%

14%



Profit After Tax

1,817

808

91

n/m


1,510

1,199

7

26











Non-controlling Interests

25

-




23

-



Net Profit

1,842

808

94

n/m


1,533

1,199

9

28











Weighted Average Shares

1,265

1,264




1,265

1,264













Earnings Per Share ($)

1.46

0.63

93

n/m


1.21

0.94

9

29

1 Gross Margin reflects Gross Profit derived from Product Sales, divided by Product Sales

2 All financial figures, except Earnings Per Share, are in $ millions ($m). Weighted Average Shares are in millions

 

Reconciliation Of Reported To Core Performance 

 

FY 2016

 

Reported

Restructuring

Intangible Asset

Amortisation & Impairments

Diabetes Alliance

Other1

Core

$m

$m

$m

$m

$m

$m

Cost of Sales

(4,126)

130

124

-

-

(3,872)

R&D Expense

(5,890)

178

81

-

-

(5,631)

SG&A Expense

(9,413)

823

1,000

(627)

48

(8,169)

Other Operating Income

1,655

(24)

86

-

-

1,717

Net Finance Expense

(1,317)

-

-

389

267

(661)

Taxation

(146)

(232)

(307)

23

4

(658)

Non-controlling Interests

93

(7)

-

-

-

86

Total


868

984

(215)

319


 

Q4 2016

 

Reported

Restructuring

Intangible Asset

Amortisation & Impairments

Diabetes Alliance

Other1

Core

$m

$m

$m

$m

$m

$m

Cost of Sales

(1,160)

43

30

-

-

(1,087)

R&D Expense

(1,543)

32

30

-

-

(1,481)

SG&A Expense

(1,386)

319

246

(938)

(291)

(2,050)

Other Operating Income

1,120

-

22

-

-

1,142

Net Finance Expense

(339)

-

-

97

70

(172)

Taxation

(366)

(82)

(86)

162

39

(333)

Non-controlling Interests

25

(2)

-

-

-

23

Total


310

242

(679)

(182)


1 Other adjustments include provision charges related to certain legal matters (see Note 7) and fair-value adjustments arising on acquisition-related liabilities (see Note 6).

 

Profit And Loss Commentary

 

Gross Profit

Reported Gross Profit declined by 5% in the year to $18,876m reflecting the market entry of Crestor generic medicines in the US. Excluding the impact of Externalisation Revenue, the Reported Gross Profit Margin was broadly stable at 80.8%, with lower restructuring and amortisation charges offset by an adverse impact from the mix of sales and a write-down of FluMist inventory in the US. Excluding these lower restructuring and amortisation charges, Core Gross Profit declined by 6% in the year to $19,130m and, excluding the impact of externalisation, the Core Gross Profit margin declined by one percentage point to 82.0%.

 

In the quarter, Reported Gross Profit declined by 15% to $4,425m and Reported Gross Margin declined by three percentage points to 77.9%. Excluding restructuring and amortisation charges, Core Gross Profit declined by 14% to $4,498m and the Core Gross Margin declined by three percentage points to 79.3%.

 

Operating Expenses: R&D

Reported R&D costs increased by 2% in the year to $5,890m (Q4 2016: $1,543m, a decline of 5%). The full-year increase reflected the number of potential new medicines in pivotal trials as well as the absorption of the R&D costs of ZS Pharma and Acerta Pharma. These costs were partially offset by lower restructuring costs and impairment charges. Without the impact of ZS Pharma and Acerta Pharma, Reported R&D costs in the year would have declined by 3%.

 

Excluding the impact of lower restructuring and impairment charges, Core R&D costs increased by 5% in the year to $5,631m (Q4 2016: $1,481m, an increase of 2%). Without the impact of the previously-mentioned investments in ZS Pharma and Acerta Pharma, Core R&D costs in the year would have declined by 1%. This compares to the 21% increase in Core R&D costs in FY 2015.

 

Operating Expenses: SG&A

Reported SG&A costs declined by 12% in the year to $9,413m, reflecting the evolving shape of the business. The decline was also driven by efficiency savings in sales and marketing operations and further reductions in IT costs. These actions included a material reduction in the sales and head-office structure in the US marketing business. Reported SG&A costs declined by 44% in the quarter to $1,386m, reflecting the fair-value adjustment to acquisition-related liabilities.

 

Core SG&A costs declined by 9% in the year to $8,169m, in line with full-year expectations of a material reduction. Core SG&A costs declined by 14% in the quarter to $2,050m.

 

Other Operating Income

Where AstraZeneca does not retain a significant economic interest in medicines or potential new medicines, income from transactions is reported as Other Operating Income in the Company's financial statements.

 

Reported Other Operating Income of $1,655m in the year included:


$m

Sale of the small-molecule antibiotics business to Pfizer

368

net of carrying values disposed and other costs to sell

Sale of the ex-US rights to Rhinocort Aqua to Cilag GmbH International (Cilag)

321

Sale of ex-US rights of Imdur

183

Crestor royalties

165

Out-licensing of a potential medicine (MEDI2070) for inflammatory diseases to Allergan plc (Allergan)

148

 net, reflecting an agreement with Amgen Inc. (Amgen)

HPV royalties

134

Other

336

Total

1,655

 

Operating Profit

Reported Operating Profit increased by 9% in the year to $4,902m. The Reported Operating Margin increased by three percentage points to 21% of Total Revenue.

 

Core Operating Profit declined by 7% in the year to $6,721m. The Core Operating Margin was stable at 29% of Total Revenue.

 

Net Finance Expense

Reported Net Finance Expense increased by 37% in the year to $1,317m, reflecting an increase in Net Debt that was driven by the acquisition of ZS Pharma and the majority investment in Acerta Pharma. Excluding the discount unwind on acquisition-related liabilities, Core Net Finance Expense increased by 46% in the year to $661m.

 

Taxation

Excluding a one-off benefit of $453m following agreements between the Canadian tax authority and the UK and Swedish tax authorities in respect of transfer pricing arrangements for the 13-year period from 2004-2016, the Reported and Core tax rates for the year were 17% and 18% respectively. Including the impact of this benefit, the Reported and Core tax rates for the year were 4% and 11% respectively. The cash tax paid for the year was $412m, which was 12% of Reported Profit Before Tax and 7% of Core Profit Before Tax.

 

The Reported and Core tax rates in FY 2015 were 22% and 21% respectively when excluding a one-off tax benefit of $186m following the agreement of US federal tax liabilities of open years up to 2008, other provision releases and the benefit of the UK patent box. Including the impact of these benefits, the Reported and Core tax rates in FY 2015 were 8% and 16% respectively.

 

Earnings Per Share (EPS)

Reported EPS of $2.77 in the year represented growth of 9%; this included a gain of $0.76 on the revaluation of acquisition-related liabilities. Core EPS in the year declined by 5% to $4.31, driven by the same rate of decline in Total Revenue. Both Reported and Core EPS in the year included a non-recurring benefit of $0.36, following the previously-mentioned agreements between the Canadian tax authority and the UK and Swedish tax authorities.

 

Dividends

The Board has declared a second interim dividend of $1.90 per share (150.2 pence, 16.57 SEK) bringing the dividend per share for the full year to $2.80 (218.9 pence, 24.38 SEK). The Board reaffirms its commitment to the Company's progressive dividend policy.

 

For holders of the Company's American Depositary Shares (ADSs), the $1.90 per Ordinary Share equates to $0.95 per ADS. Two ADSs equal one Ordinary Share.

 

Productivity

AstraZeneca's evolution and the changing shape of the business have enabled productivity improvements through the implementation of restructuring initiatives. These included those announced on 29 April 2016. Restructuring charges of $1,107m were incurred in the year. The Company remains on track to realise benefits and incur costs in line with prior announcements.

 

Cash Flow And Balance Sheet

 

Cash Flow

The Company generated a net cash inflow from operating activities of $4,145m in the year, compared with $3,324m in the comparative period. The increase reflected improved cash management performance and one-off tax refunds.

 

Net cash outflows from investing activities were $3,969m compared with $4,239m in the comparative period. The outflows partly reflected the net cash outflow of $2,383m in relation to the majority investment in Acerta Pharma, as well as $1,446m for the purchase of property, plant and equipment.

 

Net cash outflows from financing activities were $1,324m, incorporating $2,491m of new long-term loans, net of dividend payments in the year of $3,561m. This compared to an inflow of $878m in the comparative period.

 

The cash payment of contingent consideration in respect of the Bristol-Myers Squibb Company share of the global Diabetes alliance amounted to $242m in the year. The consideration is based on a tiered structure, whereby a higher royalty rate is applied until a specified level of sales is achieved in the year; thereafter a lower rate is applied to the remaining sales in the year and settled in the quarter following the application of the charge. From FY 2017 a single annual rate will be applied.

 

Capital Expenditure

Capital expenditure amounted to $1,449m in the year, representing an increase of 3%; the majority of capital expenditure was in maintenance. Investment in AstraZeneca's return to growth continued, with an element of capital expenditure split between expansion of biologics manufacturing capacity and the impending completion of the R&D centre and global headquarters in Cambridge, UK.

 

Debt and Capital Structure

At 31 December 2016, outstanding gross debt (interest-bearing loans and borrowings) was $16,808m

(31 December 2015: $15,053m). Of the gross debt outstanding at 31 December 2016, $2,307m was due within one year (31 December 2015: $916m). The Company's net debt position at 31 December 2016 was $10,657m (31 December 2015: $7,762m).

 

Shares in Issue

During the year, 1.1 million shares were issued in respect of share option exercises for consideration of $47m. The total number of shares in issue as at 31 December 2016 was 1,265 million.

 

Capital Allocation

The Board's aim is to continue to strike a balance between the interests of the business, financial creditors and the Company's shareholders. After providing for investment in the business, supporting the progressive dividend policy and maintaining a strong, investment-grade credit rating, the Board will keep under review potential investment in immediately earnings-accretive, value-enhancing opportunities. The Board reconfirms the continued suspension of the share repurchase programme.

 

Sensitivity: Foreign-Exchange Rates

The Company provides the following currency sensitivity information:

 





Average Exchange Rates Versus USD




Impact Of 5% Strengthening In Exchange Rate Versus USD ($m)2

Currency


Primary Relevance


FY 2016


YTD 20171


change %


Total Revenue


Core Operating Profit

EUR


Product Sales


0.90

 

0.94

 

-4%

 

+179

 

+123

JPY


Product Sales


108.84

 

115.14

 

-5%

 

+104

 

+71

CNY


Product Sales


6.65

 

6.87

 

-3%

 

+131

 

+74

SEK


Costs


8.56

 

8.97

 

-5%

 

+7

 

-98

GBP


Costs


0.74

 

0.81

 

-9%

 

+29

 

-131

Other3




 

 

 

 

 

 

+194

 

+124

1Based on average daily spot rates between 1st January and 30th January 2017

2Based on 2016 actual results at 2016 actual exchange rates

3Other important currencies include AUD, BRL, CAD, KRW and RUB

 

 

Currency Hedging

AstraZeneca monitors the impact of adverse currency movements on a portfolio basis, recognising correlation effects. The Company may hedge to protect against adverse impacts on cash flow over the short to medium term. As at 31 December 2016, AstraZeneca had hedged 96% of forecast short-term currency exposure that arises between the booking and settlement dates on Product Sales and non-local currency purchases.

 

 

Corporate And Business Development Update

______________________________________________________________________________________

 

The highlights of the Company's corporate and business development activities since the prior results announcement are shown below:

 

a) Sale Of Small-Molecule Antibiotics Business

On 24 August 2016, the Company announced that it had entered into an agreement with Pfizer to sell the commercialisation and development rights to its small-molecule antibiotics business and late-stage pipeline in most markets outside the US. The transaction closed in the quarter. As AstraZeneca will not maintain a significant ongoing interest in the late-stage, small-molecule antibiotics business, all payments were and will be reported as Other Operating Income in the Company's financial statements. This includes the upfront payment of $550m and an unconditional payment of $175m in 2019 (both recognised net of the carrying value of assets disposed and other costs to sell in 2016). The future payments include the milestones of up to $250m, sales-related payments of up to $600m and recurring double-digit royalties on sales of Zavicefta and ATM AVI.

 

b) Sale Of Respiratory Medicine Rhinocort Aqua (Nasal Spray)

On 7 October 2016, the Company announced that it had entered an agreement with Cilag, an affiliate of Johnson & Johnson, for the divestment of the rights to Rhinocort Aqua outside the US. The transaction closed in the quarter.

 

c) Externalisation Of Beta-Blocker Medicine Toprol-XL

On 31 October 2016, the Company completed an agreement with Aralez Pharmaceuticals Trading DAC, a subsidiary of Aralez Pharmaceuticals Inc., for the rights to branded and authorised generic Toprol-XL (metoprolol succinate) in the US. AstraZeneca will retain a significant ongoing interest in Toprol-XL through retained ownership of the medicine in ROW markets and product supply to Aralez. Therefore, the upfront payment of $175m, milestones and sales-related payments of up to $48m and mid-teen percentage royalties was and will be reported as Externalisation Revenue in the Company's financial statements.

 

d) Licensing Agreement: Monoclonal Antibody MEDI2070 (Crohn's Disease)

On 3 October 2016, the Company announced that MedImmune, its global biologics research and development arm, had entered a licensing agreement with Allergan for the global rights to MEDI2070 (moderate-to-severe Crohn's disease). The transaction closed in the quarter. AstraZeneca retained $148m of the upfront payment and will retain up to approximately $847m in future potential milestones, as well as the tiered royalty payments of up to low double-digit percent, following payment to Amgen under the provisions of the original agreement.

 

e) Externalisation Of Diabetes Medicines Bydureon And Byetta In China

On 10 October 2016, AstraZeneca entered a strategic collaboration with 3SBio for the rights to commercialise Bydureon and Byetta in the Chinese market. The agreement allowed the Company to benefit from 3SBio's established expertise in injectable medicines and also focus resources on AstraZeneca's oral diabetes franchise, including Onglyza, which is already marketed in China, as well as Forxiga and Kombiglyze, which are anticipated to launch in China in 2017. The transaction closed in the quarter.

 

Under the terms of the collaboration agreement, 3SBio made an upfront payment of $50m and will pay development milestones of up to a further $50m for the exclusive rights to commercialise Bydureon and Byetta in the Chinese market (excluding Hong Kong) for an initial period of 20 years. AstraZeneca will retain a significant ongoing interest in Bydureon and Byetta through retained ownership of the medicines in other markets and will manufacture and supply these medicines to 3SBio for an agreed purchase price.

 

f) MEDI1814 (Alzheimer's Disease)

AstraZeneca continues to collaborate with Lilly in the development of medicines for patients impacted by Alzheimer's disease (AD). Building on the current collaboration for the BACE inhibitor, AZD3293, currently in two Phase III trials, the companies are now also co-developing MEDI1814, an antibody selective for amyloid-beta 42 (Aβ42), which is currently in Phase I development as a potential disease-modifying treatment for AD. The build-up of plaque in the brain containing the peptide amyloid-beta (Aβ) is one of the pathological hallmarks of AD. MEDI1814 binds selectively to Aβ42, which is believed to be a more toxic Aβ species. In pre-clinical models, MEDI1814 dose-dependently reduces levels of this peptide, potentially slowing the progression of AD.

 

g) Senior Executive Team Changes

In January 2017, Leon Wang was appointed to the newly-created SET role of Executive Vice-President, Asia Pacific, with responsibility for the Company's activities in China and Hong Kong, Asia Area, Australia and New Zealand. Leon joined AstraZeneca China in 2013 as a Vice-President and became President in 2014. Under his leadership China became AstraZeneca's second-largest market worldwide. Leon has twenty years of experience in the pharmaceutical industry.

 

As Executive Vice-President, International West, Mark Mallon retains responsibility for AstraZeneca's businesses in Russia, Latin America, and the Middle East and Africa in addition to his role as EVP, Global Product and Portfolio Strategy, Global Medical Affairs & Corporate Affairs.

 

It was announced in January 2017 that Luke Miels, formerly Executive Vice-President, Europe would leave AstraZeneca to take up a senior position with a main competitor.

 

 

Research and Development Update

______________________________________________________________________________________

 

A comprehensive table with AstraZeneca's pipeline of medicines in human trials can be found later in this document.

 

Since the results announcement on 10 November 2016 (the period):

 

Regulatory Submission Acceptances

8

 

-     durvalumab - bladder cancer (US)

-     Tagrisso - lung cancer (AURA3 trial) (US, EU)

-     Faslodex - breast cancer (1L) (US, EU)

-     roxadustat - anaemia (CN) (rolling submission)

-     benralizumab - severe, uncontrolled asthma (US, EU)

Other Key Developments

2

 

-     Priority Review Designation: durvalumab (US)

-     Priority Review Designation: Tagrisso (US)

 

New Molecular Entities
(NMEs) In Phase III Trials
Or Under Regulatory Review*#

12

 

 

Oncology

-     durvalumab* - multiple cancers

-     durva + treme - multiple cancers

-     acalabrutinib - blood cancers

-     moxetumomab pasudotox - leukaemia

-     selumetinib - thyroid cancer

 

Cardiovascular & Metabolic Diseases

-     ZS-9* - hyperkalaemia

-     roxadustat* - anaemia

 

Respiratory

-     benralizumab* - severe, uncontrolled asthma

-     tralokinumab - severe, uncontrolled asthma

-     PT010 - COPD

 

Other

-     anifrolumab - lupus

-     AZD3293 - Alzheimer's disease

 

Projects in clinical pipeline#

120


#As at 2 February 2017

 

ONCOLOGY

AstraZeneca has a deep-rooted heritage in Oncology and offers a growing portfolio of new medicines that has the potential to transform patients' lives and the Company's future. At least six new Oncology medicines are expected to be launched between 2014 and 2020, of which two have already been launched (Lynparza and Tagrisso). A broad pipeline of small molecules and biologics is in development and the Company is committed to advancing Oncology as one of AstraZeneca's Growth Platforms primarily focused on lung, ovarian, breast and blood cancers.

 

In addition to its own existing cancer medicine capabilities, the Company is actively pursuing innovative collaborations and investments that are designed to accelerate the delivery of AstraZeneca's strategy, as illustrated by the Company's majority investment in Acerta Pharma in haematology that closed in 2016.

 

At three recent medical meetings, ASH (American Society of Hematology), WCLC (World Conference on Lung Cancer) and the San Antonio Breast Cancer Symposium, AstraZeneca highlighted its continued momentum in Oncology with a total of 50 abstracts, including 15 oral presentations. Abstracts and presentations provided a comprehensive update on recent data from Faslodex, Iressa, Tagrisso and the Company's emerging presence in blood cancers, through acalabrutinib.

 

a) Faslodex (breast cancer)

During the period, the Company received regulatory submission acceptances for Faslodex in 1st-line metastatic breast cancer in the US and the EU. The submissions were based on the Phase III FALCON trial that compared Faslodex 500mg to Arimidex 1mg for the treatment of locally-advanced or metastatic breast cancer, in post-menopausal women who have not had prior hormonal treatment for hormone receptor-positive breast cancer. Faslodex demonstrated superiority compared with Arimidex and met its primary endpoint of extended progression-free survival (PFS).

 

b) Tagrisso (lung cancer)

In December 2016, data from the AURA3 trial were presented at WCLC. AURA3 was the first randomised and controlled trial for Tagrisso and tested the medicine in 2nd-line treatment of patients with epidermal growth factor receptor (EGFR) T790M mutation-positive locally-advanced or metastatic NSCLC against standard-of-care (SoC) platinum-based doublet chemotherapy. The trial showed that Tagrisso significantly improved PFS by 5.7 months with a hazard ratio of 0.30 (equal to a risk reduction of 70%).

Additionally, in the 34% of patients with central nervous system (CNS) metastases at baseline, PFS was also significantly greater (4.3 months, hazard ratio 0.32) with Tagrisso. The medicine's ability to provide benefit in patients with CNS metastases is encouraging and Tagrisso continues to be tested in the BLOOM trial. Based on results from AURA3, regulatory submissions were made in the US and EU during the period; acceptances were received on both submissions and Priority Review Designation was obtained in the US.

c) Durvalumab (multiple cancers)

In December 2016, AstraZeneca received FDA acceptance with Priority Review status of the Biologics License Application (BLA) for durvalumab in patients with locally-advanced or metastatic urothelial carcinoma, whose disease has progressed during or after one standard platinum-based regimen. This acceptance was based on the results of the urothelial cancer cohort of Study 1108 and follows the FDA's Breakthrough Therapy Designation for durvalumab in bladder cancer in February 2016. The Prescription Drug User Fee Act (PDUFA) date is in the second quarter of 2017.

The Company is also advancing durvalumab alone and in combination with tremelimumab in bladder cancer.

 

METASTATIC UROTHELIAL BLADDER CANCER

Name

Phase

Line of Treatment

Population

Design

Timelines

Status

Combination therapy

DANUBE

III

1st Line

Cisplatin chemo-

therapy- eligible/

ineligible bladder cancer

 

durvalumab, durva + treme vs SoC chemotherapy

FPD1 Q4 2015

 

 

First data anticipated 2018

 

Ongoing

 

The Company continues to advance multiple monotherapy trials of durvalumab and combination trials of durvalumab with tremelimumab and other potential new medicines in Immuno-Oncology (IO). An update on key AstraZeneca-sponsored ongoing trials with durvalumab outside bladder cancer is provided below:

 

LUNG CANCER

Name

Phase

Line of Treatment

Population

Design

Timelines

Status

Monotherapy

ADJUVANT2

III

N/A

Stage Ib-IIIa NSCLC

durvalumab vs placebo

FPD Q1 2015

 

First data anticipated 2020

Ongoing

PACIFIC

III

N/A

Stage III unresectable NSCLC

durvalumab vs placebo

FPD Q2 2014

 

LPCD3 Q2 2016

 

First data anticipated H2 2017

Recruitment completed

PEARL

III

1st line

NSCLC (Asia)

durvalumab vs SoC chemotherapy

First data anticipated 2020

Initiating

Combination therapy

MYSTIC

III

1st line

NSCLC

durvalumab, durva + treme vs SoC chemotherapy

FPD Q3 2015

LPCD Q3 2016

 

First data anticipated mid-2017

Recruitment completed

NEPTUNE

III

1st line

NSCLC

durva + treme vs SoC chemotherapy

FPD Q4 2015

 

First data anticipated 2018

Ongoing

 

-

III

1st line

NSCLC

durvalumab + chemotherapy +/- tremelimumab

-

Ongoing in safety lead-in Phase I/II trial

ARCTIC

III

3rd line

PD-L1 neg. NSCLC

durvalumab, tremelimumab, durva + treme vs SoC chemotherapy

FPD Q2 2015

 

LPCD Q3 2016

 

First data anticipated H1 2017

Recruitment completed

CASPIAN

III

1st line

Small-cell lung cancer

durvalumab + SoC, durva + treme + SoC vs SoC chemotherapy

-

Initiating

1 FPD = First Patient Dosed

2 Conducted by the National Cancer Institute of Canada

3 LPCD = Last Patient Commenced Dosing

 

On 17 January 2017, the Company provided an update on its late-stage IO clinical-development programme in 1st-line NSCLC, including a refinement of the Phase III MYSTIC trial. The trial was initially designed to assess the benefit of durvalumab monotherapy and durvalumab and tremelimumab (durva + treme) combination therapy versus SoC chemotherapy, focused on PFS.

 

The MYSTIC trial will now assess PFS and overall survival (OS) endpoints in patients with PDL1-expressing tumours for both durvalumab monotherapy and the combination of durva + treme, as well as in 'all comers' for the combination of durva + treme, versus SoC chemotherapy. While the focus remains on exploring the benefit of durva + treme as combination therapy, the Company has updated the endpoints of the MYSTIC trial to include OS and PFS in durvalumab monotherapy. This is based on recent internal and external data, including durvalumab's strong efficacy in monotherapy presented at recent medical meetings, as well as significant opportunities in the competitive landscape.

 

The estimated primary completion date was updated to reflect both an increase in patient recruitment (as reported in February 2016 with the inclusion of OS as a co-primary endpoint) and the event-based nature of the trial. As a result, the Company anticipates MYSTIC PFS data in mid-2017 and final OS data, at the latest, in 2018. MYSTIC also includes several undisclosed interim analyses for OS.

 

Additionally, the ongoing Phase III NEPTUNE trial will be expanded with local patients to support regulatory submission of durva + treme combination therapy in China for 1st-line NSCLC patients, without delaying the anticipated OS data readout in 2018 from the global cohort, which is approaching full recruitment. The Company has also initiated the new Phase III PEARL trial of durvalumab monotherapy versus SoC chemotherapy in 1st-line NSCLC patients, whose tumours express PD-L1. The PEARL trial focuses on Asian countries, primarily China, due to the prevalence of NSCLC in the region.

 

At WCLC, AstraZeneca presented safety findings from the safety lead-in Phase Ib trial of durvalumab with or without tremelimumab in combination with doublet chemotherapy. The conclusion of this trial was that in a

PD-L1 unselected patient population, durvalumab and tremelimumab can be safely combined with full doses of pemetrexed/cisplatin chemotherapy.

 

METASTATIC OR RECURRENT HEAD AND NECK CANCER

Name

Phase

Line of Treatment

Population

Design

Timelines

Status

Combination therapy

KESTREL

 

III

1st line

HNSCC*

durvalumab, durva + treme vs SoC

FPD Q4 2015

 

First data anticipated H2 2017

Ongoing

EAGLE

III

2nd line

HNSCC

durvalumab, durva + treme vs SoC

FPD Q4 2015

 

First data anticipated 2018

Ongoing

*Head and Neck Squamous Cell Carcinoma

 

As communicated on 15 December 2016, the Company has reviewed data from the CONDOR trial, a randomised, but non-controlled Phase II trial in 2nd-line PDL1-negative HNSCC patients. While the data show efficacy and safety of the experimental medicines, AstraZeneca does not believe that a non-controlled trial can facilitate a regulatory submission for accelerated approval in a setting where a PD1-targeted medicine was approved during 2016, based on an OS benefit in all-comers.

 

On 22 November 2016, AstraZeneca announced that the FDA had lifted the partial clinical hold on the enrolment of new patients with HNSCC for clinical trials of durvalumab as monotherapy and in combination with tremelimumab or other potential new medicines. The partial clinical hold on new patient enrolment was communicated on 27 October 2016, after preliminary findings from ongoing clinical trials related specifically to HNSCC. The FDA lifted the hold following a review of the comprehensive analysis provided by AstraZeneca of bleeding events that were observed as part of the routine safety monitoring of the Phase III KESTREL and EAGLE trials.

 

d) Acalabrutinib (blood cancers)

Less than a year after announcing a majority investment in Acerta Pharma, AstraZeneca provided new clinical data on acalabrutinib, a highly-selective, potent Bruton tyrosine-kinase (BTK) inhibitor in Phase III development for B-cell malignancies. At the 2016 ASH annual meeting, two oral presentations were shared on acalabrutinib, in patients with Richter's transformation and in patients with ibrutinib intolerance, both Phase I/II trials.

 

In patients with Richter's transformation, acalabrutinib monotherapy produced a partial or complete response in 38% of patients, with a median time on treatment of 3.4 months. In 21 Richter-transformation patients evaluable for efficacy measures in the trial, median PFS was 2.1 months and the median duration of response was 5.2 months. Acalabrutinib monotherapy demonstrated a tolerable safety profile in patients with Richter's transformation and these data suggested that further investigation, in combination with immunotherapy or other targeted therapies, is warranted.

 

Acalabrutinib was well tolerated in ibrutinib-intolerant patients, with a total of 12 of 33 (36%) patients experiencing adverse event (AE) recurrence, most of which reduced or had the same severity as before; no patients discontinued treatment because of a recurrent AE. This safety profile was coupled with promising activity (objective response rate of 79%) and response duration (81% of responding patients had a duration of response ≥12 months).

 

CARDIOVASCULAR & METABOLIC DISEASES

This therapy area includes a broad type-2 diabetes portfolio, differentiated devices and unique small and large-molecule programmes to reduce morbidity, mortality and organ damage across CV disease, diabetes and chronic kidney disease (CKD) indications.

 

a) Bydureon (type-2 diabetes)

During the period, the DURATION-7 trial met its primary endpoint of a reduction in blood glucose (HbA1c) at 28 weeks as well as key secondary endpoints. No new safety findings were observed and the overall rates of AEs and serious AEs were low in both groups.

 

DURATION-7 was a multi-centre, randomised, double-blind, placebo-controlled, parallel group, Phase III trial that evaluated the safety and efficacy of once-weekly Bydureon therapy added to titrated basal insulin glargine, compared with placebo added to titrated basal insulin glargine, in patients with type-2 diabetes who have inadequate glycaemic control on basal insulin glargine with or without metformin.

 

b) Type-2 diabetes medicines in CV outcomes trials

As the field of type-2 diabetes medicines evolves, with multiple outcomes trials producing data, AstraZeneca continues to assess both Farxiga and Bydureon for potential long-term CV benefits. Two significant type-2 diabetes outcomes trials are progressing:

 

Medicine

Trial

Mode of Action

Number of Patients

Primary Endpoint

Timeline

Bydureon

 

EXSCEL

 

GLP-1 agonist

 

~14,000

 

Time to first occurrence of CV death, non-fatal MI or non-fatal stroke

Latest 2018

(final analysis)

Farxiga

DECLARE

SGLT2 inhibitor

~17,000*

Time to first occurrence of CV death, non-fatal MI or non-fatal stroke

Latest 2019

(final analysis)

*Includes ~10,000 patients who have had no prior index event (primary prevention) and ~7,000 patients who have suffered an index event (secondary prevention).

 

c) Roxadustat (anaemia)

Roxadustat is a potential first-in-class oral HIF-PH inhibitor in Phase III development for the treatment of anaemia in CKD patients. AstraZeneca, FibroGen, Inc. (FibroGen) and Astellas Pharma Inc. are jointly undertaking an extensive worldwide Phase III trial programme, enrolling more than 8,000 patients.

 

In addition to evaluating efficacy, the US/global programme is designed to demonstrate the CV safety of roxadustat in comparison to epoetin alfa in dialysis patients (based on data pooled from four clinical trials) and in comparison to placebo in non-dialysis patients (based on data pooled from three clinical trials). AstraZeneca and FibroGen anticipate data readout and US regulatory submission in 2018.

 

FibroGen is responsible for development and regulatory activities in China, and recently announced that the submission process had initiated and is expected to complete in the second or third quarter of 2017.

Additionally, on 30 January 2017, FibroGen reported positive results from two Phase III clinical trials of roxadustat in China. The two Phase III clinical trials evaluated roxadustat for anaemia in CKD in patients on dialysis and not on dialysis. Both Phase III trials met their primary efficacy endpoints, confirming earlier results. Initial analysis suggests that adverse events were consistent with previous clinical trials of roxadustat in the CKD patient population.

 

RESPIRATORY

AstraZeneca's Respiratory portfolio is aimed at transforming the treatment of asthma and COPD through combination inhaled therapies, biologics for the unmet medical needs of specific patient populations and an early pipeline focused on disease modification. The growing range of medicines includes up to four launches between 2017 and 2020. The capability in inhalation technology spans both pMDIs and dry-powder inhalers to serve patient needs, as well as the innovative Aerosphere co-suspension delivery technology, a focus of AstraZeneca's future-platform development for respiratory-disease combination therapies.

a) Symbicort (asthma, COPD)

During the period, the Company received EU approval for Symbicort SMART (Symbicort Maintenance And Reliever Therapy) for adolescent asthma patients (aged 12 to <18 years). The SMART regimen for adolescents is the same as for adult patients, with a daily maintenance dose of Symbicort Turbuhaler plus additional doses as needed in response to symptoms. Symbicort SMART is a key component of the Company's commitment to 'patient-adjusted therapy' in treating asthma.

 

On 26 January 2017, AstraZeneca announced that the FDA had granted six months of paediatric exclusivity for Symbicort, based on the evaluation of trials conducted in children with asthma aged six up to 12 years.

 

b) Benralizumab (severe, uncontrolled asthma)

During the period, AstraZeneca announced that the FDA accepted a BLA for benralizumab, an anti-eosinophil monoclonal antibody (mAb), with a PDUFA date anticipated in Q4 2017. The Company also announced that the European Medicines Agency accepted the Marketing Authorisation Application (MAA) for benralizumab.

The BLA and MAA submissions, for the treatment of patients with severe, uncontrolled asthma with an eosinophilic phenotype, were based on the results of the pivotal Phase III trials, SIROCCO and CALIMA, that demonstrated that adding benralizumab to SoC significantly reduced exacerbations and improved lung function and asthma symptoms. To date, five positive Phase III trials (BISE, SIROCCO, CALIMA, GREGALE and ZONDA) have supported the efficacy and safety profile of benralizumab. 

 

 

ASTRAZENECA DEVELOPMENT PIPELINE 31 DECEMBER 2016

AstraZeneca-sponsored or -directed trials

Phase III / Pivotal Phase II / Registration

New Molecular Entities (NMEs) and significant additional indications

Regulatory submission dates shown for assets in Phase III and beyond. As disclosure of compound information is balanced by the business need to maintain confidentiality, information in relation to some compounds listed here has not been disclosed at this time.

 

Compound

Mechanism

Area Under Investigation

Date Commenced Phase

Estimated Regulatory Acceptance Date /   
Submission Status

US

EU

Japan

China

Oncology

Tagrisso

AURA, AURA2, (AURA17 Asia regional)

EGFR inhibitor

≥2nd-line advanced EGFRm T790M NSCLC


Launched

(Breakthrough Therapy, Priority Review, Orphan drug)

Launched (Accelerated assessment)

Launched

Accepted

Tagrisso

AURA3

EGFR inhibitor

≥2nd-line advanced EGFRm T790M NSCLC


Accepted

(Priority Review)

 

Accepted



durvalumab#

PD-L1 mAb

≥2nd-line advanced bladder cancer


Accepted

(Breakthrough Therapy & Priority Review)




acalabrutinib#

BTK inhibitor

B-cell malignancy

Q1 2015

H1 2017

(Orphan drug)




acalabrutinib#

BTK inhibitor

1st-line CLL

Q3 2015

2020

(Orphan drug)

2020

(Orphan drug)



acalabrutinib#

BTK inhibitor

r/r CLL, high risk

Q4 2015

2020

(Orphan drug)

2020

(Orphan drug)



selumetinib
ASTRA

MEK inhibitor

differentiated thyroid cancer

Q3 2013

2018

(Orphan drug)

2018



moxetumomab pasudotox#

PLAIT

anti-CD22 recombinant
immunotoxin

hairy cell leukaemia

Q2 2013

2018

(Orphan drug)




durvalumab#
PACIFIC

PD-L1 mAb

stage III NSCLC

Q2 2014

H2 2017

 

H2 2017

H2 2017


durvalumab# +

tremelimumab
ARCTIC

PD-L1 mAb + CTLA-4 mAb

3rd-line NSCLC

Q2 2015

H2 2017

H2 2017

H2 2017


durvalumab# + tremelimumab

MYSTIC

PD-L1 mAb + CTLA-4 mAb

1st-line NSCLC

Q3 2015

H2 2017

H2 2017

H2 2017


durvalumab# + tremelimumab

NEPTUNE

PD-L1 mAb + CTLA-4 mAb

1st-line NSCLC

Q4 2015

2019

2019

2019

2020

durvalumab# + tremelimumab
KESTREL

PD-L1 mAb + CTLA-4 mAb

1st-line HNSCC

Q4 2015

2018

2018

2018


durvalumab# + tremelimumab
EAGLE

PD-L1 mAb + CTLA-4 mAb

2nd-line HNSCC

Q4 2015

2018

2018

2018


durvalumab# + tremelimumab

DANUBE

 

 

 

 

PD-L1 mAb + CTLA-4 mAb

1st-line bladder cancer

Q4 2015

2018

2018

2018


Cardiovascular & Metabolic Diseases

Brilinta1

P2Y12 receptor antagonist

arterial thrombosis


Launched

Launched

Approved

Launched

Farxiga2

SGLT2 inhibitor

type-2 diabetes


Launched

Launched

Launched

Accepted

Epanova#

omega-3 carboxylic acids

severe hypertriglyceridemia


Approved


2018


ZS-9 (sodium zirconium cyclosilicate)

potassium binder

hyperkalaemia


Accepted

Accepted



roxadustat# OLYMPUS (US) ROCKIES (US)

hypoxia-inducible factor prolyl hydroxylase inhibitor

anaemia in CKD/ESRD

Q3 2014

2018



Initiated3

Respiratory

Bevespi Aerosphere (PT003)

LABA/LAMA

COPD


Launched4

 H1 2017

2018

2018

benralizumab#

CALIMA SIROCCO ZONDA

BISE

BORA

GREGALE

IL-5R mAb

severe asthma


Accepted

Accepted

H1 2017

2020

benralizumab#

TERRANOVA GALATHEA

IL-5R mAb

COPD

Q3 2014

2018

2018

2019


PT010

LABA/LAMA/ICS

COPD

Q3 2015

2018

2018

2018

2019

tralokinumab

STRATOS 1,2

TROPOS

MESOS

IL-13 mAb

severe asthma

Q3 2014

2018

2018

2018


Other

anifrolumab# TULIP

IFN-alphaR mAb

systemic lupus erythematosus

Q3 2015

2019

(Fast Track)

2019

2019


AZD3293#

AMARANTH

DAYBREAK-ALZ

beta-secretase inhibitor

Alzheimer's disease

Q2 2016

2020

(Fast Track)

2020

2020


¶    Registrational Phase II trial

#    Collaboration

1    Brilinta in the US and Japan; Brilique in ROW

2    Farxiga in the US; Forxiga in ROW

3    Rolling New Drug Application (NDA) regulatory submission initiated in Q4 2016

4    Bevespi Aerosphere (glycopyrrolate and formoterol fumarate) inhalation aerosol was launched commercially in the US in January 2017

 

 

Phases I and II

NMEs and significant additional indications

Compound

Mechanism

Area Under Investigation

Phase

Date Commenced Phase

Oncology

 

durvalumab#

PD-L1 mAb

solid tumours

II

Q3 2014

 

durvalumab# + tremelimumab

PD-L1 mAb + CTLA-4 mAb

Hepatocellular carcinoma (liver cancer)

II

Q4 2016

 

durvalumab# + tremelimumab

PD-L1 mAb + CTLA-4 mAb

gastric cancer

II

Q2 2015

 

durvalumab# + AZD5069

PD-L1 mAb + CXCR2

HNSCC

II

Q3 2015

durvalumab# + AZD9150#

PD-L1 mAb + STAT3 inhibitor

 

durvalumab# + dabrafenib + trametinib

PD-L1 mAb+ BRAF inhibitor + MEK inhibitor

melanoma

II

Q1 2014

 

durvalumab# + AZD1775#

PD-L1 mAb + Wee1 inhibitor

solid tumours

I

Q4 2015

durvalumab# + MEDI0680

PD-L1 mAb + PD-1 mAb

solid tumours

I

Q3 2016

 

durvalumab# or durvalumab# + (tremelimumab or AZD9150#)

 

PD-L1 mAb or PD-L1 mAb + (CTLA-4 mAb or STAT3 inhibitor)

diffuse large B-cell lymphoma

I

Q3 2016

 

durvalumab# + Iressa

PD-L1 mAb+ EGFR inhibitor

NSCLC

I

Q2 2014

 

durvalumab# + MEDI0562#

PD-L1 mAb + humanised OX40 agonist

solid tumours

I

Q2 2016

 

durvalumab# + MEDI9447

PD-L1 mAb + CD73 mAb

solid tumours

I

Q1 2016

durvalumab# + monalizumab

PD-L1 mAb + NKG2a mAb

solid tumours

I

Q1 2016

durvalumab# + selumetinib

PD-L1 mAb + MEK inhibitor

solid tumours

I

Q4 2015

durvalumab# + tremelimumab

PD-L1 mAb + CTLA-4 mAb

solid tumours

I

Q4 2013

 

tremelimumab + MEDI0562#

CTLA-4 mAb + humanised OX40 agonist

solid tumours

I

Q2 2016

 

Lynparza + AZD6738

PARP inhibitor + ATR inhibitor

gastric cancer

II

Q3 2016

 

Lynparza + AZD1775#

PARP inhibitor + Wee1 inhibitor

solid tumours

I

Q3 2015

 

savolitinib#

MET inhibitor

papillary renal cell carcinoma

II

Q2 2014

 

Tagrisso + (selumetinib# or savolitinib#)

TATTON

EGFR inhibitor + (MEK inhibitor or MET inhibitor)

advanced EGFRm NSCLC

II

Q2 2016

Tagrisso BLOOM

EGFR inhibitor

CNS metastases in advanced EGFRm NSCLC

II

Q4 2015

 

AZD1775# + chemotherapy

Wee1 inhibitor + chemotherapy

ovarian cancer

II

Q4 2012

 

AZD1775#

Wee1 inhibitor

solid tumours

II

Q1 2016

 

vistusertib (AZD2014)

mTOR inhibitor

solid tumours

II

Q1 2013

 

AZD5363#

AKT inhibitor

breast cancer

II

Q1 2014

 

AZD4547

FGFR inhibitor

solid tumours

II

Q4 2011

 

MEDI-573#

IGF mAb

metastatic breast cancer

II

Q2 2012

 

AZD0156

ATM inhibitor

solid tumours

I

Q4 2015

 

AZD2811#

Aurora B inhibitor

solid tumours

I

Q4 2015

 

AZD4635

A2aR inhibitor

solid tumours

I

Q2 2016

 

AZD6738

ATR inhibitor

solid tumours

I

Q4 2013

 

AZD8186

PI3k inhibitor

solid tumours

I

Q2 2013

 

AZD9150#

STAT3 inhibitor

haematological malignancies

I

Q1 2012

AZD9496

selective oestrogen receptor downregulator (SERD)

ER+ breast cancer

I

Q4 2014

 

MEDI-565#

CEA BiTE mAb

solid tumours

I

Q1 2011

 

MEDI0562#

humanised OX40 agonist

solid tumours

I

Q1 2015

 

MEDI0680

PD-1 mAb

solid tumours

I

Q4 2013

 

MEDI1873

GITR agonist fusion protein

solid tumours

I

Q4 2015

 

MEDI4276

HER2 bispecific ADC mAb

solid tumours

I

Q4 2015

 

MEDI9197#

TLR 7/8 agonist

solid tumours

I

Q4 2015

MEDI9447

CD73 mAb

solid tumours

I

Q3 2015

Cardiovascular & Metabolic Diseases

 

MEDI0382

GLP-1/

glucagon dual agonist

diabetes / obesity

II

Q3 2016

 

MEDI4166

PCSK9/GLP-1 mAb + peptide fusion

diabetes / cardiovascular

II

Q1 2016

 

MEDI6012

LCAT

ACS

II

Q4 2015

 

AZD4076

anti-miR103/107 oligonucleotide

non-alcoholic fatty liver disease/non-alcoholic steatohepatitis (NASH)

II

Q4 2016

 

AZD4831

Myeloperoxidase

Heart failure with a preserved ejection fraction

I

Q3 2016

 

AZD5718

FLAP

CAD

I

Q1 2016

 

AZD8601#

VEGF-A

cardiovascular

I

Q1 2017

 

MEDI8111

Rh-factor II

trauma / bleeding

I

Q1 2014

 

Respiratory

 

tezepelumab#

TSLP mAb

asthma / atopic dermatitis

II

Q2 2014

 

abediterol#

LABA

asthma/COPD

II

Q4 2007

 

AZD7594

inhaled SGRM

asthma/COPD

II

Q3 2015

 

AZD9412#

inhaled interferon beta

asthma/COPD

II

Q3 2015

 

PT010

LABA/LAMA/ICS

asthma

II

Q2 2014

 

AZD1419#

TLR9 agonist

asthma

II

Q4 2016

 

AZD8871#

MABA

COPD

II

Q1 2017

 

AZD0284

Inhaled RORg

psoriasis

I

Q4 2016

 

AZD5634

inhaled ENaC

cystic fibrosis

I

Q1 2016

 

AZD7594+abediterol#

Inhaled SGRM+LABA

asthma/COPD

I

Q4 2016

 

AZD7986#

DPP1

COPD

I

Q4 2014

AZD9567

oral SGRM

rheumatoid arthritis

I

Q4 2015

 

Other

 

anifrolumab#

IFN-alphaR mAb

lupus nephritis

II

Q4 2015

 

anifrolumab#

IFN-alphaR mAb

systemic lupus erythematosus (subcutaneous)

I

Q4 2015

 

inebilizumab#

CD19 mAb

neuromyelitis optica

II

Q1 2015

(Orphan drug)

 

mavrilimumab#

GM-CSFR mAb

rheumatoid arthritis

II

Q1 2010

 

verinurad1

selective uric acid reabsorption inhibitor (URAT-1)

chronic treatment of hyperuricemia in patients with gout

II

Q3 2013

 

MEDI5872#

B7RP1 mAb

primary Sjögren's syndrome

II

Q3 2016

 

AZD3241

myeloperoxidase inhibitor

multiple system atrophy

II

Q2 2015

(Orphan drug)

 

MEDI3902

Psl/PcrV bispecific mAb

prevention of nosocomial pseudomonas pneumonia

II

Q2 2016

(Fast Track, US)

 

MEDI4893

mAb binding to S. aureus toxin

hospital-acquired pneumonia / serious S. aureus infection

II

Q4 2014

(Fast Track, US)

 

MEDI8852

influenza A mAb

influenza A treatment

II

Q4 2015

(Fast Track, US)

 

MEDI8897#

RSV mAb-YTE

passive RSV prophylaxis

II

Q1 2015

(Fast Track, US)

 

MEDI0700#

BAFF/B7RP1 bispecific mAb

systemic lupus erythematosus

I

Q1 2016

 

MEDI1814#2

amyloid beta mAb

Alzheimer's disease

I

Q2 2014

 

MEDI4920

anti-CD40L-Tn3 fusion protein

primary Sjögren's syndrome

I

Q2 2014

 

MEDI7352

NGF/TNF bispecific mAb

osteoarthritis pain

I

Q1 2016

 

MEDI7734

ILT7 mAb

myositis

I

Q3 2016

 

MEDI9314

IL-4R mAb

atopic dermatitis

I

Q1 2016

 

#  Collaboration

1  Planning to initiate a programme for CKD

2  Co-development collaboration with Eli Lilly for MEDI1814

 

 

Significant Lifecycle Management

Compound

Mechanism

Area Under Investigation

Date Commenced Phase

Estimated Regulatory Acceptance Date / Submission Status

US

EU

Japan

China

Oncology

Faslodex

FALCON

oestrogen receptor antagonist

1st-line hormone receptor +ve advanced breast cancer


Accepted

Accepted

Accepted

H2 2017

Lynparza OlympiAD

PARP inhibitor

gBRCA metastatic breast cancer

Q2 2014

H2 2017

H2 2017

H2 2017


Lynparza
SOLO-2

PARP inhibitor

2nd-line or greater BRCAm PSR ovarian cancer, maintenance monotherapy

Q3 2013

H1 2017

(Fast Track)

H1 2017

H2 2017


Lynparza
SOLO-1

PARP inhibitor

1st-line BRCAm ovarian cancer

Q3 2013

2018

2018

2018


Lynparza
SOLO-3

PARP inhibitor

gBRCA PSR ovarian cancer

Q1 2015

2018




Lynparza
POLO

PARP inhibitor

pancreatic cancer

Q1 2015

2018

2018



Lynparza

 

PARP inhibitor

prostate cancer

Q3 2014

 

(Breakthrough Therapy)




Lynparza

OlympiA

PARP inhibitor

gBRCA adjuvant breast cancer

Q2 2014

2020

2020

2020


Tagrisso

FLAURA

EGFR inhibitor

1st-line advanced EGFRm NSCLC

Q1 2015

H2 2017

H2 2017

H2 2017

H2 2017

Tagrisso

ADAURA

EGFR inhibitor

adjuvant EGFRm NSCLC

Q4 2015

2022

2022

2022

2022

Cardiovascular & Metabolic Diseases

Brilinta1
PEGASUS-
TIMI 54

P2Y12 receptor antagonist

outcomes trial in patients with prior myocardial infarction


Launched

(Priority Review)

Launched

Approved

Accepted

Brilinta1

THEMIS

P2Y12 receptor antagonist

outcomes trial in patients with type-2 diabetes and CAD, but without a previous history of myocardial infarction or stroke

Q1 2014

2018

2018

2018

2019

Brilinta1

HESTIA

P2Y12 receptor antagonist

prevention of vaso-occlusive crises in paediatric patients with sickle cell disease

Q1 2014

2020

2020



Onglyza

SAVOR-TIMI 53

DPP-4 inhibitor

type-2 diabetes outcomes trial


Launched

Launched


Accepted

Kombiglyze XR/Komboglyze2

DPP-4 inhibitor/ metformin FDC

type-2 diabetes


Launched

Launched


Accepted

Farxiga3
DECLARE-
TIMI 58

SGLT2 inhibitor

type-2 diabetes outcomes trial

Q2 2013

2020

2020



Farxiga3

SGLT2 inhibitor

type-1 diabetes

Q4 2014

2018

2018

2018


Xigduo XR/

Xigduo4

SGLT2 inhibitor/ metformin FDC

type-2 diabetes


Launched

Launched



Qtern (saxagliptin/

dapagliflozin FDC)

DPP-4 inhibitor/ SGLT2 inhibitor FDC

type-2 diabetes


Accepted

Approved



Bydureon weekly
suspension

GLP-1 receptor agonist

type-2 diabetes

Q1 2013

H1 2017

H2 2017



Bydureon EXSCEL

GLP-1 receptor agonist

type-2 diabetes outcomes trial

Q2 2010

2018

2018


2018

Epanova

STRENGTH

omega-3 carboxylic acids

outcomes trial in statin-treated patients at high CV risk, with persistent hypertriglyceridemia plus low HDL-cholesterol

Q4 2014

2020

2020

2020

2020

Respiratory

Symbicort

SYGMA

ICS/LABA

as-needed use in mild asthma

Q4 2014


2018


2019

Symbicort

ICS/LABA

breath actuated Inhaler asthma/COPD


2018




Duaklir Genuair#

LAMA/LABA

COPD


2018

Launched


2019

Other

Nexium

proton pump inhibitor

stress ulcer prophylaxis





Submitted

Nexium

proton pump inhibitor

paediatrics


Launched

Launched

Accepted


linaclotide#

GC-C receptor peptide agonist

irritable bowel syndrome with constipation
(IBS-C)





Accepted

#    Collaboration

1    Brilinta in the US and Japan; Brilique in ROW

2    Kombiglyze XR in the US; Komboglyze in the EU

3    Farxiga in the US; Forxiga in ROW

4    Xigduo XR in the US; Xigduo in the EU

 

 

Terminations (discontinued projects between 1 October 2016 and 31 December 2016)

NME / Line Extension

Compound

Reason for Discontinuation

Area Under Investigation

NME

durvalumab# + tremelimumab

ALPS¶   

Safety/Efficacy

metastatic pancreatic ductal carcinoma

NME

MEDI7510

Safety/Efficacy

Prevention of respiratory syncytial virus disease in older patients

 

 

Completed Projects / Divestitures

Compound

Mechanism

Area Under Investigation

Completed/

Divested

Estimated Regulatory Submission Acceptance

US

EU

Japan

China

MEDI2070#1

IL-23 mAb

Crohn's disease

Divested





Zinforo#2

extended spectrum cephalosporin with affinity to penicillin-binding proteins

pneumonia/skin infections

Divested


Launched


Submitted

Zavicefta#2

(CAZ AVI)

cephalosporin/ beta lactamase inhibitor

hospital-acquired pneumonia/ ventilator-associated pneumonia

Divested


Approved



Zavicefta#2

(CAZ AVI)

cephalosporin/ beta lactamase inhibitor

serious infections, complicated intra-abdominal infection, complicated urinary tract infection

Divested


Approved



ATM AVI#2

monobactam/ beta lactamase inhibitor

targeted serious bacterial infections

Divested





CXL#2

beta lactamase inhibitor / cephalosporin

methicillin-resistant S. aureus

Divested





AZD8108

NMDA antagonist

suicidal ideation

Divested





durvalumab#
HAWK¶3

PD-L1 mAb

2nd-line HNSCC (PD-L1 positive)

Completed





durvalumab# + tremelimumab
CONDOR¶3

PD-L1 mAb + CTLA-4 mAb

2nd-line HNSCC (PD-L1 negative)

Completed





1    AstraZeneca licensing agreement with Allergan

2    AstraZeneca completed the transaction with Pfizer to sell the commercialisation and development rights to its late-stage, small-molecule antibiotics business in most markets globally outside the US

3    Registrational trials now complete (data will contribute towards subsequent HNSCC regulatory submissions)

 

 

Condensed Consolidated Statement of Comprehensive Income

For the year ended 31 December


2016 

$m 


2015 

$m 

Product sales


21,319 


23,641 

Externalisation revenue


1,683 


1,067 

Total revenue


23,002 


24,708 

Cost of sales


(4,126)


(4,646)

Gross profit


18,876 


20,062 

Distribution costs


(326)


(339)

Research and development expense


(5,890)


(5,997)

Selling, general and administrative costs


(9,413)


(11,112)

Other operating income and expense


1,655 


1,500 

Operating profit


4,902 


4,114 

Finance income


67 


46 

Finance expense


(1,384)


(1,075)

Share of after tax losses in associates and joint ventures


(33)


(16)

Profit before tax


3,552 


3,069 

Taxation


(146)


(243)

Profit for the period


3,406 


2,826 

 





Other comprehensive income





Items that will not be reclassified to profit or loss





Remeasurement of the defined benefit pension liability


(575)


652 

Tax on items that will not be reclassified to profit or loss


136 


(199)

 


(439)


453 

Items that may be reclassified subsequently to profit or loss





Foreign exchange arising on consolidation


(1,050)


(528)

Foreign exchange arising on designating borrowings in net investment hedges


(591)


(333)

Fair value movements on cash flow hedges


(115)


Fair value movements on cash flow hedges transferred to profit or loss


195 


Fair value movements on derivatives designated in net investment hedges


(4)


14 

Amortisation of loss on cash flow hedge



Net available for sale gains/(losses) taken to equity


139 


(32)

Tax on items that may be reclassified subsequently to profit or loss


86 


87 

 


(1,339)


(791)

Other comprehensive income for the period, net of tax


(1,778)


(338)

Total comprehensive income for the period


1,628 


2,488 

 





Profit attributable to:





Owners of the Parent


3,499 


2,825 

Non-controlling interests


(93)


 


3,406 


2,826 

 





Total comprehensive income attributable to:





Owners of the Parent


1,722 


2,488 

Non-controlling interests


(94)


 


1,628 


2,488 

 





Basic earnings per $0.25 Ordinary Share


$2.77 


$2.23 

Diluted earnings per $0.25 Ordinary Share


$2.76 


$2.23 

Weighted average number of Ordinary Shares in issue (millions)


1,265 


1,264 

Diluted weighted average number of Ordinary Shares in issue (millions)


1,266 


1,265 

 

 

Condensed Consolidated Statement of Comprehensive Income

For the quarter ended 31 December


2016 

$m 


2015 

$m 

Product sales


5,260 


6,207 

Externalisation revenue


325 


192 

Total revenue


5,585 


6,399 

Cost of sales


(1,160)


(1,269)

Gross profit


4,425 


5,130 

Distribution costs


(83)


(99)

Research and development expense


(1,543)


(1,746)

Selling, general and administrative costs


(1,386)


(2,668)

Other operating income and expense


1,120 


471 

Operating profit


2,533 


1,088 

Finance income


23 


13 

Finance expense


(362)


(292)

Share of after tax losses in associates and joint ventures


(11)


(7)

Profit before tax


2,183 


802 

Taxation


(366)


Profit for the period


1,817 


808 

 





Other comprehensive income





Items that will not be reclassified to profit or loss





Remeasurement of the defined benefit pension liability


552 


618 

Tax on items that will not be reclassified to profit or loss


(120)


(187)

 


432 


431 

Items that may be reclassified subsequently to profit or loss





Foreign exchange arising on consolidation


(360)


(169)

Foreign exchange arising on designating borrowings in net investment hedges


(397)


(11)

Fair value movements on cash flow hedges


(89)


Fair value movements on cash flow hedges transferred to profit or loss


154 


Fair value movements on derivatives designated in net investment hedges


92 


(10)

Net available for sale gains taken to equity


13 


31 

Tax on items that may be reclassified subsequently to profit or loss


23 


 


(564)


(156)

Other comprehensive income for the period, net of tax


(132)


275 

Total comprehensive income for the period


1,685 


1,083 

 





Profit attributable to:





Owners of the Parent


1,842 


808 

Non-controlling interests


(25)


 


1,817 


808 

 





Total comprehensive income attributable to:





Owners of the Parent


1,710 


1,083 

Non-controlling interests


(25)


-  

 


1,685 


1,083 

 





Basic earnings per $0.25 Ordinary Share


$1.46 


$0.63 

Diluted earnings per $0.25 Ordinary Share


$1.45 


$0.63 

Weighted average number of Ordinary Shares in issue (millions)


1,265 


1,264 

Diluted weighted average number of Ordinary Shares in issue (millions)


1,266 


1,265 

 

 

Condensed Consolidated Statement of Financial Position

 


 

At 31 Dec 2016

$m


Restated*

At 31 Dec 2015

$m


ASSETS

Non-current assets






Property, plant and equipment


6,848 


6,413  


Goodwill


11,658 


11,800  


Intangible assets


27,586 


22,646  


Derivative financial instruments


343 


446  


Investments in associates and joint ventures


99 


85  


Other investments


727 


458  


Other receivables


901 


907  


Deferred tax assets


1,102 


1,294  


 


49,264 


44,049  


Current assets






Inventories


2,334 


2,143  


Trade and other receivables


4,573 


6,622  


Other investments


884 


613  


Derivative financial instruments


27 


2  


Income tax receivable


426 


387  


Cash and cash equivalents


5,018 


6,240  




13,262 


16,007  


Total assets


62,526 


60,056  


LIABILITIES

Current liabilities






Interest-bearing loans and borrowings


(2,307)


(916)


Trade and other payables


(10,486)


(11,663)


Derivative financial instruments


(18)


(9)


Provisions


(1,065)


(798)


Income tax payable


(1,380)


(1,483)




(15,256)


(14,869)


Non-current liabilities






Interest-bearing loans and borrowings


(14,501)


(14,137)


Derivative financial instruments


(117)


(1)


Deferred tax liabilities


(3,956)


(2,665)


Retirement benefit obligations


(2,186)


(1,974)


Provisions


(353)


(444)


Other payables


(9,488)


(7,457)




(30,601)


(26,678)


Total liabilities


(45,857)


(41,547)


Net assets


16,669 


18,509 


EQUITY






Capital and reserves attributable to equity holders of the Company






Share capital


316 


316  


Share premium account


4,351 


4,304  


Other reserves


2,047 


2,036  


Retained earnings


8,140 


11,834  


 


14,854 


18,490  


Non-controlling interests


1,815 


19  


Total equity


16,669 


18,509  


 






*2015 comparatives have been restated to reflect an adjustment to the acquisition accounting for ZS Pharma (see Note 5).

 

 

Condensed Consolidated Statement of Cash Flows

 

For the year ended 31 December


2016

$m 


2015 

$m 

Cash flows from operating activities





Profit before tax


3,552 


3,069 

Finance income and expense


1,317 


1,029 

Share of after tax losses in associates and joint ventures


33 


16 

Depreciation, amortisation and impairment


2,357 


2,852 

Decrease/(increase) in working capital and short-term provisions


926 


(49)

Gain on disposal of intangible assets


(1,301)


(961)

Fair value movements on contingent consideration arising from business combinations


(1,158)


(432)

Non-cash and other movements


(492)


(350)

Cash generated from operations


5,234 


5,174 

Interest paid


(677)


(496)

Tax paid


(412)


(1,354)

Net cash inflow from operating activities


4,145 


3,324 

Cash flows from investing activities





Movement in short-term investments and fixed deposits


(166)


283 

Purchase of property, plant and equipment


(1,446)


(1,328)

Disposal of property, plant and equipment


82 


47 

Purchase of intangible assets


(868)


(1,460)

Disposal of intangible assets


1,427 


1,130 

Purchase of non-current asset investments


(230)


(57)

Disposal of non-current asset investments



93 

Payments to joint ventures


(41)


(45)

Upfront payments on business combinations


(2,564)


(2,446)

Payment of contingent consideration from business combinations


(293)


(579)

Interest received


140 


123 

Payments made by subsidiaries to non-controlling interests


(13)


Net cash outflow from investing activities


(3,969)


(4,239)

Net cash inflow/(outflow) before financing activities


176 


(915)

Cash flows from financing activities





Proceeds from issue of share capital


47 


43 

New long-term loans


2,491 


5,928 

Repayment of loans


-


(884)

Dividends paid


(3,561)


(3,486)

Hedge contracts relating to dividend payments


18 


(51)

Repayment of obligations under finance leases


(16)


(42)

Movement in short-term borrowings


(303)


(630)

Net cash (outflow)/inflow from financing activities


(1,324)


878 

Net decrease in cash and cash equivalents in the period


(1,148)


(37)

Cash and cash equivalents at the beginning of the period


6,051 


6,164 

Exchange rate effects


21 


(76)

Cash and cash equivalents at the end of the period


4,924 


6,051 

Cash and cash equivalents consists of:





Cash and cash equivalents


5,018 


6,240 

Overdrafts


(94)


(189)



4,924 


6,051 






 

 

Condensed Consolidated Statement of Changes in Equity



Share
capital
$m


Share
premium
account
$m


Other
reserves*
$m


Retained
earnings
$m


Total 
$m 


Non-
controlling
interests
$m


Total
equity
$m

At 1 Jan 2015


316


4,261


2,021


13,029 


19,627 


19 


19,646 

Profit for the period


-


-


-


2,825 


2,825 



2,826 

Other comprehensive income


-


-


-


(337)


(337)


(1)


(338)

Transfer to other reserves


-


-


15


(15)




Transactions with owners:















Dividends


-


-


-


(3,537)


(3,537)



(3,537)

Issue of Ordinary Shares


-


43


-



43 



43 

Share-based payments


-


-


-


(131)


(131)



(131)

Net movement


-


43


15


(1,195)


(1,137)



(1,137)

At 31 Dec 2015


316


4,304


2,036


11,834 


18,490 


19 


18,509 


















Share
capital
$m


Share
premium
account
$m


Other
reserves*
$m


Retained
earnings
$m


Total 
$m 


Non-
controlling
interests
$m


Total
equity
$m

At 1 Jan 2016


316


4,304


2,036 


11,834 


18,490 


19 


18,509 

Profit for the period


-


-



3,499 


3,499 


(93)


3,406 

Other comprehensive income


-


-



(1,777)


(1,777)


(1)


(1,778)

Transfer to other reserves


-


-


11


(11)




Transactions with owners:















Dividends


-


-



(3,540)


(3,540)



(3,540)

Dividend paid by subsidiary to non-controlling interest


-


-





(13)


(13)

Acerta put option


-


-



(1,825)


(1,825)



(1,825)

Changes in non-controlling interest


-


-





1,903 


1,903 

Issue of Ordinary Shares


-


47




47 



47 

Share-based payments


-


-



(40)


(40)



(40)

Net movement


-


47


11


(3,694)


(3,636)


1,796 


(1,840)

At 31 Dec 2016


316


4,351


2,047


8,140 


14,854 


1,815


16,669 

* Other reserves include the capital redemption reserve and the merger reserve.

 

 

 

Notes to the Interim Financial Statements

1   BASIS OF PREPARATION AND ACCOUNTING POLICIES

The preliminary announcement for the year ended 31 December 2016 has been prepared in accordance with International Financial Reporting Standards (IFRSs) as adopted by the European Union (EU) and as issued by the International Accounting Standards Board (IASB).

 

The annual financial statements of the Group are prepared in accordance with IFRSs as adopted by the EU and as issued by the IASB. The preliminary announcement has been prepared applying the accounting policies and presentation that were applied in the preparation of the Group's published consolidated financial statements for the year ended 31 December 2015. There have been no significant new or revised accounting standards applied in the 12 months ended 31 December 2016.

 

Legal proceedings

The information contained in Note 7 updates the disclosures concerning legal proceedings and contingent liabilities in the Group's Annual Report and Form 20-F Information 2015 and Interim Financial Statements for the six months ended 30 June 2016 and the Third Quarter and Nine Months Results 2016.

 

Going concern

The Group has considerable financial resources available. As at 31 December 2016 the Group has $5.7bn in financial resources (cash balances of $5bn and undrawn committed bank facilities of $3bn which are available until April 2021, with only $2.3bn of debt due within one year). The Group's revenues are largely derived from sales of products which are covered by patents which provide a relatively high level of resilience and predictability to cash inflows, although our revenue is expected to continue to be significantly impacted by the expiry of patents over the medium term. In addition, government price interventions in response to budgetary constraints are expected to continue to adversely affect revenues in many of our mature markets. However, we anticipate new revenue streams from both recently launched medicines and products in development, and the Group has a wide diversity of customers and suppliers across different geographic areas. Consequently, the Directors believe that, overall, the Group is well placed to manage its business risks successfully.

 

On the basis of the above paragraph and after making enquiries, the Directors have a reasonable expectation that the Company and the Group have adequate resources to continue in operational existence for the foreseeable future. Accordingly, the preliminary announcement has been prepared on a going concern basis.

 

Financial information

The financial information contained in the preliminary announcement does not constitute statutory accounts of the Group for the years ended 31 December 2016 and 2015 but is derived from those accounts. Statutory accounts for 2015 have been delivered to the registrar of companies and those for 2016 will be delivered in due course. Those accounts have been reported on by the Group's auditors; their report was (i) unqualified, (ii) did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying their report, and (iii) did not contain a statement under section 498(2) or (3) of the Companies Act 2006. The quarterly information for the three month period to 31 December 2016 and to 31 December 2015 has not been subject to audit.

 

 

2   RESTRUCTURING COSTS

Profit before tax for the year ended 31 December 2016 is stated after charging restructuring costs of $1,107m ($394m for the fourth quarter of 2016). These have been charged to profit as follows:

 



FY 2016
$m


FY 2015
$m


Q4 2016
$m


Q4 2015
$m

Cost of sales


130 


158


43


34

Research and development expense


178 


258


32


78

Selling, general and administrative costs


823 


618


319


260

Other operating income and expense


(24)


- 


-


-

Total


1,107 


1,034


394


372

 

 

3   NET DEBT

The table below provides an analysis of net debt and a reconciliation of net cash flow to the movement in net debt.



At 1 Jan 

2016 

$m 


Cash Flow

$m 


Acquisitions

 

$m


Non-cash

& Other

$m


Exchange Movements

$m


At 31 Dec

2016 

$m 

Loans due after one year


(14,109)


(2,491)


- 


1,793 


312 


(14,495)

Finance leases due after one year


(28)


-


- 


22 


- 


(6)

Total long-term debt


(14,137)


(2,491)


- 


1,815 


312 


(14,501)














Current instalments of loans


- 


- 


- 


(1,769)


- 


(1,769)

Current instalments of finance leases


(67)


16 



(37)



(87)

Total current debt


(67)


16 



(1,806)



(1,856)














Other Investments


613 


164 


140 


54 


(73)


898 

Net derivative financial instruments


438 


(2)


- 


(201)



235 

Cash and cash equivalents


6,240 


(1,231)


- 


- 


9 


5,018 

Overdrafts


(189)


83 


- 


- 


12 


(94)

Short-term borrowings


(660)


303 


- 


1 


(1)


(357)



6,442 


(683)


140 


(146)


(53)


5,700 

Net debt


(7,762)


(3,158)


140 


(137)


260 


(10,657)

 

Non-cash movements in the period include fair value adjustments under IAS 39.

 

 

4   MAJORITY EQUITY INVESTMENT IN ACERTA PHARMA

On 2 February 2016, AstraZeneca completed an agreement to invest in a majority equity stake in Acerta Pharma, a privately-owned biopharmaceutical company based in the Netherlands and US. The transaction provides AstraZeneca with a potential best-in-class irreversible oral Bruton's tyrosine kinase (BTK) inhibitor, acalabrutinib (ACP-196), currently in Phase III development for B-cell blood cancers and in Phase I/II clinical trials in multiple solid tumours.

 

Under the terms of the agreement, AstraZeneca has acquired 55% of the issued share capital of Acerta for an upfront payment of $2.5bn. A further payment of $1.5bn will be paid either on receipt of the first regulatory approval for acalabrutinib for any indication in the US, or the end of 2018, depending on which is first. The agreement also includes options which, if exercised, provide the opportunity for Acerta shareholders to sell, and AstraZeneca to buy, the remaining 45% of shares in Acerta. The options can be exercised at various points in time, conditional on the first approval of acalabrutinib in both the US and Europe and when the extent of the commercial opportunity has been fully established, at a price of approximately $3bn net of certain costs and payments incurred by AstraZeneca and net of agreed future adjusting items, using a pre-agreed pricing mechanism. Acerta has approximately 150 employees.

 

AstraZeneca's 55% holding is a controlling interest and Acerta's combination of intangible product rights with an established workforce and their operating processes requires that the transaction is accounted for as a business combination in accordance with IFRS 3.

 

Goodwill is principally attributable to the value of the specialist knowhow inherent in the acquired workforce and the accounting for deferred taxes. Goodwill is not expected to be deductible for tax purposes. Acerta Pharma's results have been consolidated into the Group's results from 2 February 2016. From the period from acquisition to 31 December 2016, Acerta Pharma had no revenues and its loss after tax was $212m.

 

In the period since 2 February 2016, the acquisition accounting has been adjusted to reflect new information regarding the value of net assets acquired with Acerta. This has resulted in an increase in other assets of $15m, a decrease in deferred tax liabilities of $50m, and a decrease in goodwill of $65m.

 

 




 

Fair value

$m

Intangible assets



7,307 

Other assets including cash and cash equivalents



253 

Deferred tax liabilities



(1,777)

Other liabilities



(90)

Total net assets acquired



5,693 

Non-controlling interests



(1,903)

Goodwill



19 

Fair value of total consideration



3,809 

Less: fair value of deferred consideration



(1,332)

Total upfront consideration



2,477 

Less: cash and cash equivalents acquired



(94)

Net cash outflow



2,383 

 

 

5   ACQUISITION OF ZS PHARMA

On 17 December 2015, AstraZeneca completed the acquisition of ZS Pharma, a biopharmaceutical company based in San Mateo, California. ZS Pharma uses its proprietary ion-trap technology to develop novel treatments for hyperkalaemia, a serious condition of elevated potassium in the bloodstream, typically associated with CKD and Chronic Heart Failure.

 

During 2016, we revised our assessment of the fair values of the assets and liabilities acquired as a result of new information obtained about facts and circumstances that existed at the date of acquisition that impact the value of deferred tax. This has resulted in a reduction to both deferred tax liabilities and goodwill of $68m.

 




Fair value

$m

Non-current assets




Intangible assets



3,162 

Property, plant and equipment



21 




3,183 

Current assets



169 

Current liabilities



(50)

Non-current liabilities




Deferred tax liabilities



(977)

Other liabilities



(13)




(990)

Total net assets acquired



2,312 

Goodwill



388 

Total upfront consideration



2,700 

Less: cash and cash equivalents acquired



(73)

Less: deferred upfront consideration



(181)

Net cash outflow



2,446 

 

 

6   FINANCIAL INSTRUMENTS

As detailed in the Group's most recent annual financial statements, our principal financial instruments consist of derivative financial instruments, other investments, trade and other receivables, cash and cash equivalents, trade and other payables, and interest-bearing loans and borrowings. As indicated in Note 1, there have been no changes to the accounting policies for financial instruments, including fair value measurement, from those disclosed on pages 146 and 147 of the Company's Annual Report and Form 20-F Information 2015. In addition, there have been no changes of significance to the categorisation or fair value hierarchy of our financial instruments. Financial instruments measured at fair value include $1,611m of other investments, $1,719m of loans, and $235m of derivatives as at 31 December 2016. The total fair value of interest-bearing loans and borrowings at 31 December 2016 which have a carrying value of $16,808m in the Condensed Consolidated Statement of Financial Position, was $18,174m. Contingent consideration liabilities arising on business combinations have been classified under Level 3 in the fair value hierarchy and movements in fair value are shown below:

 

 



Diabetes

Alliance

2016


Other

 

2016


Total

 

2016


Total

 

2015



$m


$m


$m


$m

 At 1 January


5,092 


1,319


6,411 


6,899 

 Settlements


(242)


(51)


(293)


(579)

 Revaluations


(999)


(159)


(1,158)


(432)

 Discount unwind


389 


108


497 


524 

 Foreign exchange


-


-



(1) 

 At 31 December


4,240 


1,217


5,457 


6,411 

 

 

7   LEGAL PROCEEDINGS AND CONTINGENT LIABILITIES

 

AstraZeneca is involved in various legal proceedings considered typical to its business, including litigation and investigations relating to product liability, commercial disputes, infringement of intellectual property rights, the validity of certain patents, anti-trust law and sales and marketing practices. The matters discussed below constitute the more significant developments since publication of the disclosures concerning legal proceedings in the Company's Annual Report and Form 20-F Information 2015 and as part of the Company's Half-Yearly Financial Report for the six-month period to 30 June 2016 and the Third Quarter and Nine-Month Results 2016 (the Disclosures). Unless noted otherwise below or in the Disclosures, no provisions have been established in respect of the claims discussed below.

 

As discussed in the Disclosures, for the majority of claims in which AstraZeneca is involved it is not possible to make a reasonable estimate of the expected financial effect, if any, that will result from ultimate resolution of the proceedings. In these cases, AstraZeneca discloses information with respect only to the nature and facts of the cases but no provision is made.

 

In cases that have been settled or adjudicated, or where quantifiable fines and penalties have been assessed and which are not subject to appeal, or where a loss is probable and we are able to make a reasonable estimate of the loss, we record the loss absorbed or make a provision for our best estimate of the expected loss.

 

The position could change over time and the estimates that we have made and upon which we have relied in calculating these provisions are inherently imprecise. There can, therefore, be no assurance that any losses that result from the outcome of any legal proceedings will not exceed the amount of the provisions that have been booked in the accounts. The major factors causing this uncertainty are described more fully in the Disclosures and herein.

 

AstraZeneca has full confidence in, and will vigorously defend and enforce, its intellectual property.

 

Matters disclosed in respect of the fourth  quarter of 2016 and to 2 February 2017.

 

 

Patent litigation

 

Faslodex (fulvestrant)

US patent proceedings

As previously disclosed, AstraZeneca has filed patent infringement lawsuits in the US District Court in New Jersey (the District Court) relating to four patents listed in the FDA Orange Book with reference to Faslodex after AstraZeneca received Paragraph IV notices relating to six Abbreviated New Drug Applications (ANDAs) seeking FDA approval to market generic versions of Faslodex prior to the expiration of AstraZeneca's patents. In December 2016, AstraZeneca settled the lawsuit against one of the ANDA filers, and the District Court entered a consent judgment in January 2017 which ended that particular lawsuit. AstraZeneca continues to litigate in the District Court against two other ANDA filers.

 

As previously disclosed, in July 2016, AstraZeneca was served with four petitions for inter partes review by the Patent Trial and Appeal Board (PTAB) relating to each of the four Orange Book-listed patents. In December 2016, the PTAB issued an order denying institution of the first of the four petitions. In January 2017, the PTAB terminated the remaining petitions at the request of the parties.

 

Patent proceedings outside the US

As previously disclosed, in Germany, in July 2015, AstraZeneca was served with complaints filed by Hexal AG (Hexal) and ratiopharm GmbH (ratiopharm) requesting the revocation of the German part of European Patent No. EP 1250138 (the '138 Patent). Following an oral hearing in January 2017, the German Federal Patent Court declared the patent invalid. AstraZeneca intends to appeal. In January 2017, the Regional Court of Düsseldorf suspended the effects of a provisional injunction based on the '138 patent which had been in place against Hexal since February 2016. Hexal is also seeking to lift a provisional injunction based on European Patent No. EP 2266573. In January 2017, the Higher Regional Court of Düsseldorf lifted a provisional injunction based on the '138 patent which had been in place against ratiopharm since September 2016. 

 

As previously disclosed, in China, in March 2014, AstraZeneca received a request for invalidation of the Faslodex formulation patent, CN01803546.9, filed by Jiangsu Hansoh Pharmaceutical Co. Ltd. at the Chinese Patent Office. In September 2014, the Patent Re-examination Board of the Chinese Patent Board declared the patent invalid. AstraZeneca appealed to the Beijing IP Court and the appeal was rejected in April 2016. AstraZeneca appealed this decision to the Beijing Higher People's Court and the appeal was rejected in December 2016. AstraZeneca is considering its options.

 

Onglyza (saxagliptin) and Kombiglyze (saxagliptin and metformin)

US patent proceedings

As previously disclosed, in June 2016, the US Court of Appeals for the Federal Circuit denied Mylan Pharmaceuticals Inc.'s (Mylan) petition for rehearing en banc of the decision affirming the denial of Mylan's motion to dismiss for lack of jurisdiction. In September 2016, Mylan filed a petition for writ of certiorari with the Supreme Court of the United States seeking an appeal of that decision and, in January 2017, the writ was denied.

 

As previously disclosed, in May 2016, the US Patent and Trademark Office (USPTO) instituted an inter partes review brought by Mylan Pharmaceuticals Inc. challenging the validity of US Patent No. RE44,186 (the '186 Patent) (the Mylan IPR). Subsequently, Wockhardt Bio AG, Teva Pharmaceuticals USA Inc., Sun Pharmaceutical Industries Ltd., Sun Pharma Global FZE, and Amneal Pharmaceuticals LLC also filed petitions for inter partes review challenging the validity of the '186 Patent and joined the Mylan IPR. A hearing in the Mylan IPR was held in January 2017. A decision is awaited.

 

Crestor (rosuvastatin) 

US patent proceedings

As previously disclosed, in December 2015, the US District Court for the District of South Carolina (the District Court) dismissed and entered judgment in AstraZeneca's favour in a patent infringement lawsuit filed by plaintiff Palmetto Pharmaceuticals, LLC (Palmetto), which, among other things, claimed that AstraZeneca's Crestor sales induced infringement of Palmetto's patent. Palmetto subsequently appealed. In December 2016, the Federal Circuit Court of Appeals affirmed the District Court's order dismissing the lawsuit.

 

Patent proceedings outside the US

As previously disclosed, in Japan, in March 2015, an individual filed a patent invalidation request with the Japanese Patent Office (JPO) in relation to the Crestor substance patent. In July 2016, the JPO dismissed the request. The individual has appealed to the Intellectual Property High Court of Japan (the High Court) with the intervention of Nippon Chemiphar Co. Ltd (Nippon). In addition, Nippon commenced a separate patent invalidation request with the JPO in relation to the Crestor substance patent. In November 2016, the JPO denied the request. Nippon has appealed to the High Court.

 

Synagis (palivizumab) 

US patent proceedings

In December 2016, UCB BioPharma SPRL (UCB) filed a complaint against MedImmune LLC in the US District Court for the District of Delaware alleging infringement of US Patent No. 7,566,771. The complaint relates to a royalty-bearing license between Celltech R&D LTD and MedImmune which was terminated by MedImmune in 2010.

 

Losec/Prilosec (omeprazole)

Patent proceedings outside the US 

As previously disclosed, in Canada, in 2004, AstraZeneca brought proceedings against Apotex Inc. (Apotex) for infringement of several patents related to Losec. In February 2015, the Federal Court of Canada (the Federal Court) found that Apotex had infringed AstraZeneca's Losec formulation patent (Canadian Patent No. 1,292,693). Apotex appealed. In January 2017, the Federal Court of Appeal upheld the trial court's findings of infringement and validity. However, the Federal Court upheld one aspect of Apotex's appeal relating to a limitation period defence, which may lower the amount of damages owed by Apotex. A reference to determine patent infringement damages is scheduled to commence in February 2017.

 

 

Product liability litigation

 

Farxiga (dapagliflozin)

As previously disclosed, in the US, AstraZeneca has been named as a defendant in lawsuits involving plaintiffs claiming physical injury, including diabetic ketoacidosis and kidney failure, from treatment with Farxiga and/or Xigduo XR. Cases with these allegations have been filed in several jurisdictions. As previously disclosed, in October 2016 one of these cases was dismissed with prejudice in favour of AstraZeneca. Since then, several other cases have been dismissed either voluntarily or by the courts. Motions to dismiss are pending in many of the jurisdictions where AstraZeneca has been served.

 

As previously disclosed, in the US, counsel for plaintiffs in a product liability action pertaining to Invokana (a product in the same class as Farxiga) filed a motion with the Judicial Panel on Multidistrict Litigation (JPML) seeking transfer of any currently pending cases as well as any similar, subsequently filed cases to a coordinated and consolidated pre-trial multidistrict litigation (MDL) proceeding on a class-wide basis. In December 2016, the JPML granted an MDL to only those plaintiffs alleging injury from Invokana.

 

Onglyza/Kombiglyze (saxagliptin)

As previously disclosed, in the US, AstraZeneca is defending various lawsuits filed in state and federal courts involving multiple plaintiffs claiming heart failure, cardiac failure and/or death from treatment with either Onglyza or Kombiglyze. In December 2016, plaintiffs in the California Superior Court filed a Petition for Coordination with the Judicial Council of California, requesting that all similar, currently pending or subsequently filed cases in California be coordinated for pre-trial purposes.

 

Nexium (esomeprazole)

As previously disclosed, in the US, AstraZeneca has been defending product liability lawsuits brought in US federal and state courts by approximately 1,900 plaintiffs who alleged that Nexium caused osteoporotic injuries, such as bone deterioration, loss of bone density and/or bone fractures, but all such claims have now been dismissed with judgment entered in AstraZeneca's favour. Approximately 270 plaintiffs appealed the dismissal of their claims to the US Court of Appeals for the Ninth Circuit, and fewer than 40 plaintiffs appealed the dismissal of their claims to the California Second Appellate Division. In October 2016, the US Court of Appeals for the Ninth Circuit affirmed the dismissal of the approximately 270 claims in federal court. In January 2017, the California Second Appellate Division affirmed the dismissal of the less than 40 cases in California state court. 

 

 

Commercial litigation

 

Crestor (rosuvastatin calcium)

As previously disclosed, in Israel, in November 2012, a Motion to Certify a Claim as a Class Action and Statement of Claim (together, a Motion to Certify) were filed in the District Court in Tel Aviv, Jaffa, (the District Court) against AstraZeneca and four other pharmaceutical companies for alleged deception and failure to disclose material facts to consumers regarding potential adverse events associated with certain drugs, including Crestor. In July 2013, an amended Motion to Certify containing similar allegations to those in the first action were filed in the same District Court against the same defendants. In November 2016, the plaintiff filed a motion to withdraw from the action, which the District Court granted in December 2016. This matter has now concluded.

 

Nexium Settlement anti-trust litigation

As previously disclosed, AstraZeneca is a defendant in a multidistrict litigation class action and individual lawsuit alleging that AstraZeneca's settlements of certain patent litigation in the US relating to Nexium violated US anti-trust law and various state laws. A trial in the US District Court for the District of Massachusetts (the District Court) commenced in October 2014 and, in December 2014, a jury returned a verdict in favour of AstraZeneca and entered judgment in favour of AstraZeneca in September 2015. The plaintiffs appealed that judgment and, in November 2016, the US Court of Appeals for the First Circuit affirmed the District Court's decision. The plaintiffs petitioned for rehearing and rehearing en banc, both of which were denied in January 2017.

 

Telephone Consumer Protection Act litigation

In December 2016, in the US, AstraZeneca and several other entities were served with a complaint filed in the US District Court for the Southern District of Florida (the District Court) that alleges, among other things, violations of the Telephone Consumer Protection Act caused by the sending of unsolicited advertisements by facsimile. AstraZeneca's motion to dismiss is pending. The plaintiff also made a motion for class certification, which, in January 2017, was denied without prejudice by the District Court.

 

 


8 product analysis - FY 2016

 



World


US


Europe


Established ROW


Emerging Markets



FY 2016

$m


CER

%


FY 2016

$m


CER

%


FY 2016

$m


CER

%


FY 2016

$m


CER

%


FY 2016

$m


CER

%

 Oncology:





















 Iressa


513


(5)


23


n/m 


120


(5)


137


(8)


233


(10)

 Tagrisso


423


n/m 


254


n/m 


76


n/m 


83


100 


10


100 

 Lynparza


218


n/m 


127


81 


81


n/m 


3


n/m 


7


n/m 

 Legacy: