AstraZeneca Full-Year and Q4 2015 Results

4 February 2016

Full-Year and Q4 2015 Results

Financial Summary

•     Core EPS in the year up by 7% and by 22% in Q4 2015
•     Total Revenue growth of 1% in the year, with the gross margin on Product Sales up by 1% point
•    Top-line and gross-margin growth underpinned continued investment in R&D. Core R&D costs up by 21% in the year, reflecting the investment in the pipeline
•     Core SG&A costs down by 2% in the year (Q4 2015: down by 11%), in line with commitments
•     Reported EPS in the year up by 137%, at $0.63 in Q4 2015 (Q4 2014: loss per share of $0.25)
•    A second interim dividend of $1.90 per share, bringing the dividend for the full year to $2.80; the Board reaffirms its commitment to the progressive dividend policy
•    FY 2016 CER guidance - a low to mid single-digit percentage decline in Total Revenue and a low to mid single-digit percentage decline in Core EPS; includes dilutive effects from recent transactions

FY 2015 Commercial Highlights

The Growth Platforms grew by 11% in the year, representing 57% of Total Revenue. ‘New Oncology’ is included for the first time, reflecting its long-term importance for the Company’s future growth:

1. Respiratory: +7%, before completion of the acquisition of Takeda’s Respiratory business
2. Brilinta/Brilique: +44%, underpinned by a recently-extended US label and positive CHMP opinion
3. Diabetes: +26%, including +76% in Emerging Markets. Global Farxiga/Forxiga growth of 137%
4. Emerging Markets: +12%, including China and Latin America each growing by 15%
5. Japan: +4%, including +8% in Q4 2015
6. New Oncology: Contributed $119m, comprising Lynparza, Iressa (US) and Tagrisso

Achieving Scientific Leadership: Progress since the last results announcement

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

“We delivered a strong pipeline and financial performance in 2015 as we begin the next phase in our strategic journey. The Growth Platforms delivered an 11% rise in Product Sales that, along with the 7% increase in Core EPS, demonstrated the underlying strength of our business. Our culture of innovation continued to drive R&D productivity, with six regulatory approvals in the year. This momentum will continue in 2016 as we anticipate six regulatory submissions and around ten major data readouts. We strengthened the strategic importance of Oncology, bringing to patients next-generation therapies such as Tagrisso in lung cancer and Lynparza in ovarian cancer, as well as a promising immuno-oncology pipeline. Alongside this organic progress, we also continued to invest in our main therapy areas through key agreements with Acerta Pharma, ZS Pharma, and Takeda.

As we face the transitional period of patent expiry for Crestor in the US, we’re confident that our strong execution on strategy, combined with the benefits of focused investments and new launches, keeps us on track to return to sustainable growth in line with our targets.”

Please click on the associated PDF document to view the full announcement:

http://www.rns-pdf.londonstockexchange.com/rns/0432O_1-2016-2-4.pdf