AstraZeneca PLC

Good morning to those joining from the UK and the US. Good afternoon to those in Central Europe, and good evening to those listening in Asia. Welcome, ladies and gentlemen, to AstraZeneca's full year and Q4 2025 results conference call for investors and analysts. Before I hand over to AstraZeneca, I'd like to read the safe harbour statement. The company intends to utilise the safe harbour provisions of the United States Private Securities Litigation Reform Act of 1995. Participants on this call may make forward-looking statements with respect to the operations and financial performance of AstraZeneca. Although we believe our expectations are based on reasonable assumptions, by their very nature, forward-looking statements involve risks and uncertainties. and may be influenced by factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements. Any forward-looking statements made on this call reflect the knowledge and information available at the time of this call. The company undertakes no obligation to update forward-looking statements. Please also carefully review the forward-looking statements disclaimer in the slide deck that accompanies this meeting. For those joining remotely, there will be an opportunity to ask questions after today's presentations. Please use the raise a hand feature to indicate you wish to ask a question at any time during the call. And for those attending in person, roving microphones will be available to ask questions during the Q&A. After the presentation, you'll be invited to raise your hand in the air and we will bring the microphone to you. When you receive the microphone, please state your name and organisation. I must advise you that this presentation is being recorded today. And with that, I will now hand you over to the company.

Right, a warm welcome everybody to AstraZeneca's full year at fourth quarter 2025 presentation conference call and webcast for investors and analysts. I'm Andy Barnett, head of investor relations. And before I hand over to Pascal and the rest of the executive team, I'd like to cover some housekeeping items. Firstly, all the materials presented today are already available on the AstraZeneca investor relations website. Next slide, please. This slide contains our forward-looking statements, including the safe harbour provisions, which I'd encourage you to take the time to read. We were making comments on our performance using constant exchange rates or CER, core financial numbers and other non-GAAP measures. A non-GAAP to GAAP reconciliation is contained within the results announcements and all numbers quoted today are in millions of US dollars unless stated otherwise. Next slide please. Here's the agenda for today's call. Following our prepared remarks, as usual, we'll open the line for questions. We will try and address as many questions as we can during the allocated time, although please limit the number of questions you ask to allow others a fair chance to participate. We do have a hard stop today at quarter past the hour. as many of us have to catch flights in order to participate in the full-year roadshow. So we will need to cut it short. We'll try and get to as many people as we can. Hopefully everybody gets a fair chance to ask a question. And with that, Pascal, great year. Over to you.

Thank you, Andy. Welcome, everyone. It's really a great pleasure to see you all again and to present our full-year results. It's been a great year. Our company, if we can move to the next slide, our company delivered very strong performance, both on the financial and, most importantly, the pipeline front. On the financial side, revenue grew 8%, and product revenue, importantly, grew 10%, driven by continued global demand for innovative medicines. Our core EPS, as you can see here, grew by 11%. We had 16 blockbuster medicines in 2025 with 17 medicines growing at double digits. And we have the potential to get to 25 blockbusters by 2030. Remember when we announced our $80 billion target back in May 2024, we had 12 blockbusters at the time. We now have 16 and we hope to get 25. And many of those new ones actually are either approved or soon approved or in Phase 3. So good hopes that we will indeed get to 2025. At our full year results last year, we signalled that we are entering an unprecedented catalyst-rich period for our company. Our R&D teams continue to deliver. We had 16 positive Phase 3 trial redoubts in 2025. Together, they have a combined PQR sales potential of 10 billion, as you see on this slide. In the last 12 months, we have secured 43 approvals for medicines across major regions, helping us to sustain growth into 2026. And it's important also for me to recognize the work everybody's done in the company. It's for the company to do this in particular work. our global operations colleagues because each time we launch one product, for them it's probably 50, 60 launches, so many different SKUs around the world. So everybody's done a tremendous job across the organization. So if we move to the next slide, the strengths of our portfolio was clear in 2025. And we are not taking significant steps to continue to strengthen our manufacturing and R&D footprints in both the US and China. Together, our global reach and our diverse revenue streams really support our low concentration risk and ensure resilience to regional disruptions. Why don't you keep in mind, I know a couple of years ago, many questions we were getting were, your pipeline is complicated, it's diversified. I struggled to get my head around it. I hope today people realize better the value of this diversification. We're now talking about concentration risk. It's great to have one or two big, big products, makes you very profitable and makes you look good. But one of those, if you lose one of those, as we've seen happen to some actors in the industry lately, it really becomes very painful very quickly. So this diversification, both product-wise but also geographically, is suddenly becoming more apparent as we drive growth. through therapy areas, but also through regions. So if you look at this chart, we saw growth across oncology and RNA in particular, growing each 17% and 12% respectively. CVRM, of course, was impacted by the panel expiry of Brelinta and Farciga in the UK, and there will be more of this, unfortunately, in 2026. Despite this, we still grow 2%. And overall, biopharmaceuticals still grow 6% and represent about 40% of our global sales. Rare disease grew 5%, despite the impact of biosimilars on solaris. I'd say the transition from solaris to ultramaris is not totally finished, but close to being completed. And ultramaris is now growing very nicely. We continue to see increasing demand for medicines across all our regions. Of course, strong growth in the US, 10%. We continue to grow in Europe, but importantly, I think, I would like to highlight or attract your attention to the emerging markets outside of China. China still grew 4%, despite losing Pulmicor to Generics. We still grew 4%, which is quite nice, and we remain the largest pharma company in China. But outside of China, 22%. This part of the world is starting to really play an important role. As I said, Europe will still grow 7%. Next slide, please. Importantly, our momentum through the pipeline continues. We now have more than 100 phase three trials that are ongoing. Think about that, 100 phase 3 trials, it's an enormous momentum going through the pipeline, and this year we should have 20 phase 3 readouts. And those readouts, fingers crossed, of course, if they are positive, they will collectively drive more than $10 billion of peak revenue. And the pipeline 27 should also again deliver a similar number, actually slightly higher, in 2027. Of course, not all, but at least the great majority of these phase 3 readouts need to be positive. Importantly, you can see that there is a growing number of let's stage assets, but importantly an increasing value per indication. As our pipeline grows, we continue to focus and prioritize, and of course we prioritize the most valuable projects, and you can see in light pink, the average PQR revenue per indication. That reflects the increasing individual value of projects and the continuous effort we make to prioritize, even though we have a lot of projects. Next slide, please. So the question is often asked of us beyond 2030, and we said back in May 2024, and we continue saying the same, we want to be a gross company until 2030, reach this 80 billion ambition, but also be a gross company post-2030. And that is why we need to continue investing in R&D. That is why we need to continue focusing on technologies and new medicines that will actually change the future of medicines and drive our growth post-2030. So you can see here the list of the five... technologies that we prioritized and decided to invest in. And if you look at weight management, cardiovascular risk factors, we now have two products in phase three. Of course, our all PCSK9, for which we will get data in 2027. But we also announced that we have moved our oral GLIP1 into phase 3, and we have a broad set of studies covering diabetes, weight loss in monotherapy, combination products, cardiovascular outcome studies. So we have a very ambitious plan for our oral GLIP1. We're also investing in new products that will actually shape the future of this weight management sector, which is in the initial steps, really. And the future will be made of better convenience, longer duration of action for injectables, moving to weekly to monthly, and some of this will come from the partnership we announced with CSPC recently, but also new mechanisms. So we are waiting for data on our GLIP1 glucagon and our amylin product. The GLIP1 glucagon in itself has independent value, but we also will combine it with amylin, so we should get data this year. So, oral agents, long-acting injectables, new mechanisms, helping patients lose more fat and less muscle are the directions we are heading into. Now, if you look at ADC and radioconjugates, we now have Eight ADCs that are ADCs that came out of our own pipeline, our own efforts. Three of those are in phase three. We will get data in the first half of this year for one of those, as you can see here at Senevi. And importantly, we have new ones, both as ADCs, but also radioconjugates that are moving through early development. We have novel linker combinations, payload combinations. We have dual payloads ADC. We have radio ligands. So we continue to build this. That will drive our growth post-2030. We, of course, invest in our next generation IOBA specifics, in particular, Rilve-Gostomig. And we combine... Those with our ADCs, as we've said in the past. Cell therapy, T-cell engagers, we're making good progress with AZD0120 that has good encouraging data in phase 1, but is entering phase 3 this year. And we are moving as fast as we can to move it into hematology indications, but also immunology indications. And we also have very exciting data, early data, for sirovetamig, and it's also moving into phase three. And on top of this, we have multiple approaches to CAR-T, not only CAR-T, but also allergenic projects, and some of them will be in the clinic this year. And we're working on the in vivo... approach, as you know. And then we also have new platforms, TCE platforms. And finally, we're making progress also in our gene therapy programs. So if we move to the next one, I'll hand it out to Hannah, who will take you through the final shows. Thank you.