Q2 2025 AstraZeneca PLC Earnings Call
You have joined the meeting as an attendee and will be muted throughout the meeting.
Good afternoon and welcome to AstraZeneca's H1 and Q2 2025 webinar for investors and analysts.
Before I hand over to Astron, I'd like to read the Safe Harbor statement.
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And with that, I'd now like to hand the conference over to the head of investor relations at astrozen, Andy Barnett
A warm welcome everybody. To astrozen is half year and second quarter of 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 other members of the executive team, I'd like to cover some important housekeeping items. Firstly, all of the materials presented today are available on our astrozen, investor relations website.
This site contains our Safe Harbor statement, which I’d encourage you to take the time to read. We will be making comments on our performance using constant exchange rates or CER core financial numbers and other non-GAAP measures.
and non-gaap to gaap reconciliation is contained within the results announcement and all numbers quoted are in millions of US Dollars unless stated otherwise
This slide shows our agenda for today's call. Following the prepared remarks, we will open the line for questions as usual. We'll try and address as many questions as we can during the allotted time. Or they please limit the number of questions that you asked to allow others. A fair chance to participate in the Q&A.
And with that, I'll hand the call over to Pascal.
Thank you, Andy, and welcome, everyone.
I'm pleased to report that our strong growth momentum an excellent pipeline delivery continued through the first half of 2022. In the first 6 months of the year total revenue growth by 11% driven by continued demand for Innovative medicines core pears. Grow 17% reflecting the importance we place upon investing in our pipeline while driving operating leverage across our company.
Since our full year results in February, we've achieved 19 regulator approvals in Kyo regions.
And the pace at which we are bringing new medicines to patients around the world continues to accelerate.
In the year to date, our pipeline delivery has been excellent. We've already announced the results of 12 positive Phase 3 trials this year, including the first pivotal data for 5 new molecular entities.
In the past few weeks alone, we communicated the high-level results for Back for Start and GAB, which both represent important potential contributors to our 2030 ambition.
Please move to the next slide.
Our diverse broadband business continues to present an attractive risk profile, resilient to regional disruption.
And I'm pleased to report once again that we saw strong growth across therapy areas and geographies.
In the first half, we saw double digit growth across oncology and bio Pharmaceuticals and a return to growth for our rare disease business in the second quarter which was up 7%.
We also saw robust growth across geographies, particularly in the US and the Emerging Markets outside of China.
And the line demand also remained a strong across other regions, including in China, where the growth rate continues to be affected by between record generics.
Next slide, please.
We continue to progress through a catalyst, Rich period and we've already announced multiple high value trials.
With many more to come throughout the remainder of the year and into 2026.
In oncology we continue to grow our leading position in breast cancer, reinforced by positive trial, results for chemistry in S6 and on her to in the destiny, breast store, 9 and Destiny, breast 11 trials.
We are also expanding our presence in gastrointestinal and Cancers with the matter horn and Proto Trials of infini.
In addition, we support positive overall survival data from Florida 2 for chemotherapy consolidation. Our leading position in EGF-formulated lung cancer.
In BIO Pharmaceuticals. The colors logos program has the potential to bring breast tree into and controlled asthma.
And the backs HT and trial for back. So that represents an exciting opportunity to redefine treatment for patients with hard-to-treat hypertension.
Cards for the chaos program of on salami map in Sevier light and the prevailed trial for Geology map in, uh, G&G.
Including the trials, highlighted here, the phase 3 results in 2025 have the combined potential to generate well, over 10 billion dollars in pure revenue, on a risk adjusted basis.
and this is why I've said many times in the past, but the end of this year, early next year,
you would have a very good sense of the direction in terms of our 80 billion Target for 2013, which we believe we're on track to achieve at at this stage next slide, please
We continue to make exciting progress with our transformative Technologies, which have the potential to drive our growth. Well, beyond 20130 at ASCO, this year we shared the first combination data for iio by specific in combination with that whole way as we seek to displace both. First generation IO checkpoint Inhibitors, as well as traditional chemotherapy.
Since our school, we've moved yet, another ADC using our proprietary platform. Into the clinic furthering, our ambition, to replace chemotherapy across a broad range of cancer types.
And we start, please advance to the next slide and I will hand over to our now.
Thank you, Pascal.
Reported pnl next. Slide please.
As Pascal highlighted total revenue increased by 11% in the first half.
Product sales increased by 10% with sustained strong momentum across key Brands and Alliance Revenue was up 38%.
Driven by growth in shared profits of inherited desire. And before this, in regions where our partners book product sales.
Next slide, please.
Turning to our core pnl. We saw a total revenue growth margin of 83% in the first half benefiting from product sales, mix and favorable FX impact on the first quarter with somewhat reversed in the second quarter.
As previously stated, we anticipate that the total revenue for gross margin will decline by around 60 to 70 basis points in 2025.
Driven by factors such as Medicare Part D redesign.
So lets biosimilar competition and increased profit. Share related to partnered products.
We anticipate a growth margin in the second half of the Year, driven by these factors, as well as the usual seasonal pattern for medicines such as flumist.
Total operating expenses increased by 9% in the first half below Topline growth of 11%.
Or R&D costs increased by 17% and represented 23% of total revenue.
Driven by accelerated recruitment into our clinical trials. The additional costs relating to medicines acquired through Business Development, and a step up of investments in transformative Technologies.
As mentioned as our ASCO event in June, we now anticipate core R&D costs for the full year to land at the upper end of the low 20s percentage range of total revenue.
Core SG&A costs increased by 3%, growing at a much higher rate than total revenue.
We are anticipating continued operating, leverage and margin Improvement this year, similar to Prior years. We expect a lower margin in the second half from primarily related to the growth margin effects previously mentioned.
Course, tax rate was 18% in the first half which benefited from a favorable settlement in the first quarter and is anticipated to remain 18 to 22% for the full year. Core EPS of 4.66 represents 17% growth next. Slide, please,
as I just mentioned, the increase in R&D cost was driven in part by accelerated clinical trial recruitment with more than 50% of our trials. Recruiting significantly ahead of plan.
We've seen a growing number of patients in our clinical trials, and by the end of the second quarter, the total had reached 56,000 patients.
We also saw increased investments in our transformative technologies, including in our IO by specifics. Our in-house ADCs.
Cell therapy as well as our growing portfolio in cardiovascular and renal medicines.
We continue to make investments, not only to achieve our 2030 Ambitions, but also to drive continued growth Beyond 2030.
We anticipate R&D cost to remain in the low 20s percentage range of total revenue for the longer term.
On the sgna side, I'm pleased to report that we're making great progress and I would like to thank all our teams globally.
We are seeing productivity gains from initiatives, undertaken in the last few years, including the redeployment of resources, utilization of share utilization of shared service centers and investments in digital and AI. All of which have led to sgna costs, increasing by only 3%. In the first 6 months despite the high number of new launches.
Next slide, please.
We are reiterating our guidance for the year where we anticipate High single digit percentage increase in revenue and low double digit percentage, increase in eps.
We have had strong performance in the first half and expect that momentum to continue in our core products but note that the brilliant eloe Solaris biosimilar and product life. Flumist are more second half weighted and there's uncertainty regarding for Sega
also note that the year-on-year growth rate in the second half will be skewed by the 600 million dollar limpas are related. Milestone received in the fourth quarter of 2024
Net cash flow from operating activities increased by 27% to $7.1 billion in the first half.
As previously communicated, we expect kapus capex to increase by 50% this year with 1.3 billion dollars spent in year to date.
As a reminder, our total capex, including both tangible and software-related intangible assets, was $2.2 billion last year.
Earlier this month, we announced a new multi-billion dollar manufacturing facility in the US that will produce drug substance for Innovative weight management and metabolic portfolio, including our oral glp1 backstore. Stat oral pcsk9 and combination small molecule products.
This facility makes part of the recently announced $50 billion investment plan in the United States, which also includes R&D spend, operating expenses, and investments across several of our existing sites.
These investments are in line with our previously stated objectives to increase both our manufacturing and R&D footprints in the U.S.
Deal payments of 2.3 billion. In the first half, included in her 2 Milestone and an approximately 400 million upfront payment for the eso biotech acquisition, which closed in the second quarter.
Net debt increased by $650 million in the first half, driven by the dividend payment made in the first quarter.
We remain comfortable with our current level of debt and decrease in the net debt. EBA ratio to 1.4 times reflects or improving operating cash flow.
With that, please advance to the next slide and I will hand over to Dave. We will take you through our oncology and hematology business performance.
Thank you. Rodney next. Slide, please.
Oncology total revenues grew 16% in the first half to 12 billion, underpinned by strong double-digit, growth across the US, Europe and Emerging Markets growth. In the US was, particularly notable up 19% with demand growth substantially offsetting the impact of the Medicare Part D redesign rebates.
Started at the beginning of 2025.
Turning now to quarterly performance for our key medicines we saw double-digit growth across all key Brands this quarter.
To griso delivered 12% growth in the second quarter reflecting strong demand across all indications. The market, share for the Florida 2, regiment continues to expand and the recently announced positive overall, survival results, reinforce those position as the front line standard of care in egfr mutated lung, cancer.
Overall, we anticipate continued sequential growth across all indications through the remainder of the year.
Calquence Remains the leading, BTK inhibitor across major markets with total revenues, increasing by 10% to 872 million in the second quarter.
In the US we saw growth in new patients starts. Having secured preferential formulary placement in CLL across several commercial plans driving Frontline, share gains.
We also saw strong uptake in the first-line mantle cell lymphoma following the approval of Echo in January.
Looking ahead, we see meaningful growth potential for the fixed duration. Amplify regimen and CLL, following its recent approval in Europe and filing Acceptance in the US.
Actually offset potential impact of vbp inclusion. In China, anticipated later this year.
True Cap delivered $170 million in the second quarter, reflecting 84% growth compared to Q2 last year. We continued to see growing demand in the core second-line patient segment. As we reported last quarter, we have achieved nearly 100% market share in the AKT P10 biomarker-altered population.
Further growth will be driven by increased uptake within the pik3ca population and additional Global launches.
We saw particularly strong growth of Infineon and Judo in the second quarter up 26 and 18% respectively. In the US, there's been rapid early. Uptake of new infini regimens, Adriatic and aian and lung cancer in Niagara in bladder, cancer as well as continued momentum in the established lung and liver indications.
Strong launch of Adriatic and small cell, lung cancer, in Europe. More than offset, the increased competitive pressures in biliary tract, cancer in Japan.
We remain focused on driving further adoption of Enthusiasm Judo with additional launches for Niagara, Adriatic, and Anagen expected in the coming months, and with Matterhorn and gastric cancer set to contribute significantly to growth in 2026.
And her 2 total revenues grew 42% in the second quarter reflecting sustained Market leadership. In both her 2 positive and her 2 low metastatic breast cancer. We're seeing strong initial uptake in China within her 2 on the back of very rapid and Broad Hospital. Formulary listings. Following ennard, L enlistment in January,
We see accelerating uptake for Destiny breast of 6 with momentum building in the US and early, use in the chemotherapy naive segment emerging in European markets, following approval in April.
Statuary is gaining traction, and hormone receptor positive her 2 negative breast cancer with early positive signals and share gains across key markets. We expect growth to accelerate through the remainder of the Year. Following the recent us approval and nccn guideline inclusion for patients with previously, treated Advanced egfr mutated lung cancer
With strong momentum across our portfolio. We are well, positioned for continued growth through the rest of the year. As we deliver Innovative oncology medicines to more patients, across the globe with that. Please advance to the next slide. And I'll hand over to Susan, to cover R&D highlights from the quarter.
thank you, Dave, this here at ASCO, Astro zenica delivered multiple data sets with the potential to transform clinical practice including 2 plan presentations,
This marks the 7th consecutive year. Our science has been selected for the ASCO plenary session highlighting, both the caliber and consistent impact of our research.
And underscoring the value, our data brings to patients, to clinicians, and the wider oncology community.
The Serena 6 data represent the first phase 3 results for Camas estron on Next Generation. Oral third and complete. ER antagonist.
Which is an exciting new molecular entity with best-in-class potential.
Key first line at treatment objective for patients with hormone receptor positive Advanced Breast Cancer is to prolong the time until disease progression, whilst maximizing quality of life.
In this interim analysis. Camas plus a cdk, 46 inhibitor, reduce the risk of progression or death by 56% compared to an aromatase inhibitor. Plus cdk4 6 inhibition.
And showed an encouraging trend for improvement in second progression-free survival.
Can recession also demonstrated a very well tolerated safety profile with a discontinuation rate due to Adverse Events of less than 1 and a half percent.
And it meaninglessly prolonged the time patients maintained their quality of life. But our median is over 16 months.
The significance of these findings is reinforced by the recent breakthrough therapy designation granted by the FDA.
The destiny Resto. 9 trial moves in her to 1 line earlier in the treatment of metastatic her 2 positive breast cancer into the first line setting.
The trial, demonstrated that combination of in her 2 plus partisan map, resulted in a median, progression-free survival of more than 3 years.
With the 44% reduction in the risk of progression or death compared to the standard of care. 3, drug regimen thp,
There was also a strong Trend. The second progression free survival, benefit, and an early Trend towards overall survival benefits.
Treating her to positive breast cancer at the earliest opportunity with the most effective therapy is critical, as approximately a third of patients diagnosed with metastatic disease don't go on to receive a second line of therapy.
Positive breast cancer, and their value has been recognized by the FDA, who recently also granted this data set Breakthrough Therapy Designation.
Matt Horne demonstrated a significant improvement in event-free survival for perioperative infy plus FLOT chemotherapy compared with FLOT alone.
With two-thirds of patients with respectable gastric or gastroesophageal cancer remaining event-free at two years.
And with a strong Trend towards improved overall survival.
this represents a third perioperative regimen for infy, after a gene and Niagara, and introduces a new treatment approach in a disease, where options have traditionally been Limited,
We're delighted that the Matterhorn has been granted priority review by the FDA.
This quarter. We also reported 3 key, high-level data readouts, Destiny, breast 11th, Tomac and Flora 2 overall survival.
Destiny. West 11 moves in her to enter the Neo argument early breast cancer setting where the chance for cure is at its highest.
The trial focuses specifically on patients with high-risk disease, where there's a large unmet need, with nearly half of patients not currently achieving a pathologic complete response to treatment, and many struggling to tolerate current standard-of-care combination chemotherapy regimens.
In her 2 followed by thp. Demonstrated a statistically significant and clinically meaningful Improvement in pathologic complete response rate compared to standard of care.
With a trend to improve event-free survival and an improved safety, profile versus dose ducts of rubberen and cyclos followed by thp.
The full data will be presented at esmo later this year.
Data from our other early breast cancer and her 2 trial Destiny, bresto 5, which looks at adyant in her 2 in high-risk patients. Post-surgery are also expected later this year.
In addition, we recently initiated our first trial of subcutaneous in her to which has the potential to further improve the patient experience across our broad range of indications.
Potomac moves in flimsy into the earliest treatment space of non-muslim, invasive cancer with infy plus BCG induction and maintenance regimen demonstrating an improvement in the time until disease recurrence or progression compared with BCG alone.
These dates will be presented later this year.
Alongside the trials we have in muscle invasive disease, the recently approved Niagra trial and the ongoing vulgar trial Potomac potentially broadens and reinforces infirmity position in bladder cancer.
Both Destiny West 11 and PTO underscore. Our commitment to bring transformative treatments into the earlier lines of care to maximize the chance of of cure.
Finally I also want to briefly highlight as Dave mentioned, the recent announcement that Flora 2 demonstrated a statistically significant in clinically meaningful Improvement in overall survival versus tresso monotherapy.
These data reinforce the impact of Tagrisso and its role as the backbone therapy across all stages of EGFR-mutated lung cancer. We also look forward to sharing these data later this year.
And with that, please advance to the next slide, and I'll pass over to Ruud to cover BioPharmaceuticals performance.
Thank you so much. Susan next. Slide, please.
Oh, BioPharmaceuticals. Medicines continue to deliver strong performance in the first half, with double-digit growth of 10%, taking total revenue to $11.2 billion.
RNI continued its impressive momentum with total revenue of $4.2 billion, up 13%, with growth medicines now making up 60% of the therapy areas revenue.
CRM achieved total revenue of 6.6 billion. Growth of 8%.
We are consistently seeing robust performances from our key medicines in rni each quarter.
For Stendra, grew 18% to $502 million in the second quarter.
We have now launched the cinema in China and in the United States, we saw strong. Uptake in the new egpa indication referenda has already achieved. Leading share of new to Brand prescriptions.
We also had the positive readout for the Natron trial in hyper E in the philic syndrome in June.
And we are awaiting, the results of the Resolute trial officer in COPD due in the second half of this year.
The Aspire Group by 65% in the second quarter and has achieved leading new to Brand. Biologic share in asthma across key Market. In key markets,
The regulatory review of the Waypoint data in nasal polyps is well in the way and we are looking forward to launching this new indication in the second half.
The Spy is also being investigated in COPD.
With its face 3 program ongoing.
Water benefiting from growing adoption of in health. Uh triple Therapies in COPD and now has the potential to expand into asthma. Following the positive readout from the K loss and loss trials in May
demand for a Supra remains impressive with the clinical proposition in moderate asthma strengthened, by the vetura trial results of which were published in the New England Journal of Medicine in May
South grew by 48% this quarter and has steadily gained share among systemic lupus patients treated with intravenous infusion. We are looking forward to the results of the TULIP SC or subcutaneous trial later this year.
Cvrm, grew by 3% in the second quarter, which continued demand for FICA and local offsetting. The expected impact of Berlin. Generic competition in the United States and European markets.
Sega's strong trajectory continued with revenues up 10% to $2.2 billion in the quarter.
In the second half, we expect the amount to continue to increase. However, revenues in China are expected to be impacted by the vvp implementation.
Delivered, another impressive quarter with revenues of 175 million and growth of 27%.
Local is the leading potassium binder in chronic kidney disease and heart failure.
We firmly believe that the kalmah has blocked us the potential giving opportunities for further Regional expansion.
Renua delivered $44 million in the quarter, including the first sales in Texas markets.
We are excited for the cardio transform trial. We know the fish 3 TR in 80, TR cardiomyopathy, which is due to read out in the second half of 2026.
This is the largest trial in this population and has the potential to address key questions regarding the optimal use of silences and stabilizers to treat this debilitating and deadly disease.
And finally, we were particularly excited to see the first positive Phase 3 readout for Bacillus Calmette-Guérin earlier this month. And with that, I will hand over to Sharon.
Thanks, rude. Next. Slide, please.
I'm pleased to share the positive high-level results from the backs, hdn phase 3 trial of Backstreet in uncontrolled, or resistant hypertension, which were announced earlier this month.
Hypertension is the leading modifiable risk factor for heart attack stroke, heart failure and kidney disease and it remains a huge unmet. Medical need
Currently, nearly 50% of adults in the U.S. live with hypertension, and half of those patients still have inadequately controlled blood pressure, despite taking multiple medications.
With no new treatments for over 2 decades Baxter stat has the potential to be a first-in-class, highly selective elderone synthesis. Inhibitor that targets, the hormone driving elevated blood pressure leading to increased cardiovascular and renal risk.
It's designed to reduce elderone production at its source, delivering a highly targeted approach. That may help avoid the hormonal side effects often associated with current Therapies.
In backs htn 796 patients with uncontrolled or treatment resistant. Hypertension were randomized. 1 to 1 to 1 to receive 1, Mig or 2 Megs of back, or Placebo on top of standard of care, without the need for dose titration.
The primary endpoint was change in seated, systolic blood pressure or spp, measured it 12 weeks using automated office blood pressure readings.
Secondary endpoints included assessment of seated spp after randomized. Withdrawal of treatment from weeks 24 to 36 seated SVP and the subpopulation of patients with resistant hypertension and the proportion of patients achieving SBP below. 130, mm of mercury at week, 12 alongside safety and tolerability measures.
We are delighted that both doses of extra stat, demonstrated, statistically significant and clinically meaningful reductions in Sp at 12 weeks and the trial also met all secondary end points.
Baxter. Stat was generally well tolerated in the trial with a favorable safety profile.
The robust trial design of backs. Htn gives us great confidence in the data. And these results, add to the compelling body of evidence supporting Baxter stats, clinical promise, and addressing a critical unmet need in this hard to treat population.
We look forward to presenting these data at the upcoming European Society of Cardiology meeting in the late-breaking hotline session next month, and we are working at PACE to share these data with the regulatory authorities.
Clinical trials enrolling more than 20,000 patients.
We believe the long half-life of Baxter status. A key differentiator for this potential medicine supporting 24-hour systolic blood pressure control and we are looking forward to confirming this in the back 24 due to read out later this year.
We are looking to extend the potential reach of facts back across the globe and backs. Asia will provide us with data for the Asian population, in the first half of next year.
We are also in the process of initiating a new trial, backs PA in primary aldosteronism.
This is a condition where XFL Doster is driving hypertension, electrolyte, imbalances and longer term, cardiovascular risk.
Beyond this, we are rapidly advancing the combination of Bactra and Apical Fauxan with three Phase 3 trials ongoing, two of which are outcome studies.
Facts Duo Arctic investigates whether the combination can slow the progression of chronic kidney disease.
Facts Duo Pacific initiated in 2024. It looks at whether the combination reduces the risk of kidney decline or failure and cardiovascular death.
Prevent adhf started this year is the first of its kind trial and investigates whether the combination results in reduction of heart failure events and cardiovascular death.
We are very excited about this strong momentum across our CVRM pipeline, underpinned by multiple novel approaches and our ability to explore unique multi-mechanism combinations to address interrelated CVRM diseases.
And with that, please proceed to the next slide and I'll pass over to Mark to cover rare disease.
Thank you, Sharon. Can I get the next slide, please?
Where does this medicine return? To growth in the second quarter? We start the revenue up 7%. Resulting in 3%, growth in the first half to 4.3 billion dollars.
In the second quarter, PRI grew by 23%.
Driven by patient demand across indications including the competitive, generalized Masta gravis.
And paroxysmal nocturnal hemoglobinuria markets.
so, the risk revenues
Continue to decline due to the successful conversion to Ultra.
As well as various similar pressures in Europe.
This decline was partially offset by all the time being in tender markets.
Beyond complement, both strength and cost grew 15% and 18% respectively, driven by continued patient demand.
Please advance to the next slide.
We recently reported phase 3, readouts for 2, new molecular entities gave you really map and answer in my map.
We are excited by your Phase 3 Prevail trial investigating geolab or dual binding nanobody targeting C5 in patients with generalized MG, meeting all endpoints.
If you remember, we demonstrated a statistically significant and clinically meaningful improvement from baseline in Myasthenia Gravis Activities of Daily Living total score at week 26 compared to placebo.
The prevalent trial was contacted in a broader GMG patient population.
Compared with prior Trials of C5, targeted Therapies.
And we are highly encouraged by GMAB's rapid, complete, and sustained complement inhibition.
With improvements in both patients and practitioner.
Reported outcomes.
Self administered.
Subcutaneously, once a week with the potential for 2-delivered syringes.
And a first class auto injector.
We believe that with the strength of this data and convenient administration, gab has the potential to become a new first-line therapy following corticosteroids and immunosuppressant treatments.
The GMG Market has expanded significantly over the past 3 years, with new products, entrance increasing disease, awareness and diagnosis rates.
Currently, less than 20% of patients are on branded treatments.
And we expect this to increase to approximately 50% in the next 3 years.
Additionally self administered medicine represent only a small part of this market today.
And we expect this segment to grow substantially.
Moving now to anomie map. We recently provided an update on our office 3 CARE program in patient with severe light chain and melodies
Did not achieve that physical significance for the primary endpoint in the overall patient population.
The map showed a highly clinically meaningful improvement in all-cause mortality.
And cardiovascular hospitalization in a prespecified patient group on top of background standard of care.
We are continuing to evaluate the full result from cares to further characterize the efficacy and safety of enzyme map and we intend to share this data with global Health authorities.
It is important to note that this is the first phase 3 trial to demonstrate that targeting amiloide. Fibrils for depletion width specific antibodies.
Can be highly effective in reducing deaths.
And hospitalization in an ammo.
Driven disease.
These boosters are confidence to develop novel therapy that depletes amyloid.
we also investigating another febrile, deep liter he took
Previously known as alexion 20 to 20 in transferring amloid cardiomyopathy.
Has now completed recruitment.
With more than 10,000 patients, enrolled more than 1 year ahead of plan.
This is an exciting year for already this Pipeline with additional kit trials.
Expected to read out in the second half.
The registrant on trial of virus init TMA represents an important commercial opportunity and would be the first indication for UTIs.
Beyond the Solaris label.
A sinful Alpha on next generation and then replacement therapy which is studied in Broad hypophosphatasia patient population.
At the potential to reach between $3 billion and $5 billion in pixel revenue.
Importantly.
Much of this value would be unlocked with the studies expected to read out this year.
And finally, you may recall AstraZeneca and several partners spearheaded efforts to secure an update to the big, beautiful bill act, which broadens the scope of our fundraiser exclusion from Medicare direct price negotiation.
The Orphan Drug Act is a significant positive for rare disease patients.
Companies will no longer be deterred for innovating in orphan indication.
Or investigating medicine across multiple rare diseases.
When I'm working with CMS to understand the implementation process, but we believe our current and Future Ready. This portfolio would be protected by this legislation and with that, please advance to the next slide and I will hand back to Pascal.
Thank you, Mark. Next slide, please. In conclusion, our company has continued to deliver strong growth in the first half of the year, driven by sustained commercial and pipeline momentum, with multiple positive data results and important advances across our Edge Touch pipeline.
Here to date we've seen above industry success rights in our lead stage portfolio.
Looking ahead, we have several exciting readouts over the next 6 months across oncology rare disease and biofarm.
Next slide, please.
We're making significant progress towards our 2030 ambition and are confident in our growth trajectory beyond 2030. As we invest behind transformative technologies that have the potential to change medical practice, we want to be a growth company to 2030 and beyond. For that, we need to invest in technologies that will actually transform the future of medicine but also drive the company forward over the next decade and beyond. That explains why we continue to invest heavily in research and development. Additionally, as our heart now mentioned, we are continuing to drive operating leverage.
Across the the company, while not compromising on our investment in R&D and high priority medicines. As I just said,
we've already launched 9 new medicines towards our Target of 20 by 2030 and with pivotal data for 5 enemies. Announced this year, we're very much on track to meet or even exceed this objective.
Please advance to the next slide, and we'll now move to the Q&A.
As Andy mentioned at the start of the call.
Online. Please use the raise hand function on Zoom for that. Let's now move to the first question, which is from James Gordon at JP Morgan. Over to you, James.
Hello James Gordon, JP Morgan. Thanks for taking the two questions.
The first question was on duty way in advance on the 2030 revenue target. So just put in data in advance or in context. So how much do you now need a Banza to work to deliver your $80 billion in 2030 revenue target? What was baked in and what's required? And we've seen quite a lot of phase 2 readouts since the $80 billion target was set last year. So, most favored nations aside, are you more or less confident? How has confidence changed in things outside oncology such as, say, back to start I or 33 or and Telomere? I was just was talked about. So, that's the first question: how do you risk the things beyond Dutch way?
And then the second question was on vegf by specifics. So, vegf is a mechanism. Has got quite a lot of interest recently, for lung cancer. I've seen you started a trial of rural Visa pd1 digit with a ctla4 with, or without benefits is a map. So, a single agent by Jeff.
So so I guess how how exciting is there? Jeff if you're doing vegf? So our vegf uh, agent is exciting for combos for lung cancer. And is it better to do a mono or or what about by specific? Because I don't think you have a by specific. So do you think it's better to be by specific and get the 2 together or to do them by themselves?
Thank you, James. Charles, maybe I’ll cover quickly. The first question, Susan, you might want to take the picture of. On your first question, James, the answer is a straight, uh, no, we don’t need Avanza to deliver its billion target. Of course, we hope and we believe Avanza will be a successful trial and will drive that whole way. But, um,
As we've said many times before, uh, $80 billion is a risk. Just a number across the totality of the portfolio.
Um and you know as we progress with the risk projects back for that, was at least from an hour already perspective recently the risk.
And we now have, of course, to launch it and commercially succeed, but there is an important product just the risk. Um, we have many other studies that we've just mentioned in the last few minutes that are not the risk. And basically, we no longer have to be risk-adjusted in this forecast of $80 billion to 2030. So we don't need the Venza. The last point I will make is that Hawaii is not only about a Venza. We already have a pool in breast cancer indication. We have a pool in.
BJ file, a patient's post. Post post Inhibitors and chemotherapy.
So, you know, that whole way is more than a Venza. Having said that, of course, I hope that Avanzar is a positive trial, so this is another to you for VF.
Yeah, sure. Thanks, Pascal. Um, so in terms of the
Um, our pd1 and digit real, the cost to make and pd1 with ct4 ctla4 for us to make as a core components of our by specific portfolio. Um, and what we're doing is combining those extensively with the rest of our portfolio. The the profile that we've seen with River gusta make, um, I think it's differentiated from other agents out there because you've got the ability to inhibit both, um, molecules with uh, with 1 molecule both targets for 1 particular cell with 1 molecule. And I think that's important. What we also see, because of its FC, um, silent or reduced design is really excellent safety. Particularly in combination with very low discontinuation rates. So we're looking at that, uh, both in combination with chemotherapy, but in combination with our extensive ADC portfolio as well.
There are clearly some indications where, uh, vegf uh, mechanism of action has been shown over over many years, to have some, uh, added benefits. And we're looking at that in combination, with our, um, with real the gig, um, for example in the uh, uh, HCC. And the gastric Gemini, um, trials. I think there is some potential for that, uh, activity also in in lung cancer, and we're also going to be investigating that in lung cancer trials, as well. Um, looking at combinations with ramosum. So I think this, there's some potential, but, you know, the, the key thing is that the real value of reels of Augusta because it's combined many different indications and with our, uh, ADC portfolio. And that's what we're, um, focusing on on doing the, um, 1 final point on of vanza. Um, you know, that's an event driven trial. I would just point out that we completed a cruel for that at the end of 2024, actually, while I had a um, schedule. Um, and it's often it's often the case that you have to wait for the events to come. That's, uh, sometimes the positive
Thing. Thanks. Thanks.
All right. Thank you, Suzanne. The next question is from S&P Morgan Stanley. Over to you, Essy.
Thanks for taking my questions, um 1 on vims GPS and the second on in her 2. So on in films, you could you talk about how large, the revenue opportunities are for infirmity across bladder cancer, as well as gastric cancer. And how are you viewing the emerging competition from patuda pad 7 cancer? I believe there's competing data in the Niagara and vulgar settings expected in 2027.
And then second year on her 2. Could you help us understand how you expect in her to, to be integrated into the first line, uh, to positive setting in breast cancer? Are you expecting majority of patients to use in her to, in line with the dbo9 protocol? Or could you see in her to move more to a maintenance treatment? Um, sorry. An induction treatment versus maintenance. Um, as your competitor has been highlighted, and if you could just touch on the confidence of the inherited monotherapy arm, and when we could expect data, please, thank you.
Thank you. So, Dave, two good questions for you.
You have to unmute Dave. I mean, I keep forgetting myself that we need to unmute and mute.
Sorry about that. Pascal. Um, thank you for that Sarah. Thank you for the questions. Uh, on this uh, just an opportunity to reiterate here that, uh, the growth that we saw in the quarter on infini, which was quite strong. Really did come from uh, the new indications that we were launching you call out within 1 of those uh bladder cancer, and Niagara and we were really pleased to see the uptake that we saw there. Um in terms of the size of the bladder cancer opportunity, if you look across the various studies that we have Niagara uh Potomic. Um and then we look forward to the vulgar readout. Uh bladder cancer is a blockbuster opportunity and certainly the uh potential for uh competition is 1 that we're aware of um EV and pads have an important role. But that's the reason that the vulgus study is also such an important part of all of the portfolio of bladder cancer studies that we have, uh, so far the uptake that we've seen, uh, with Niagara has been strong. And we look forward to hopefully building on that, uh, with
Read out from, uh, vulga and, and, and have an opportunity for that to go forward. And I think that depending upon, uh, the readouts, it's, it's, uh, we'll see exactly how EV does. Um, there are multiple, uh, different scenarios that can play out. One of them is that Niagara continues to remain, uh, the primary standard of care going forward. And the other is that the incorporation of EV is important, and that's why we've got to study within the setting.
Within gastric cancer. And specifically, uh, we talked about the Matterhorn study again. I think Matterhorn is in and of itself, a, uh, Blockbuster opportunity obviously, uh, this is something that, uh, we need to move forward with approval but I think that we heard a very, uh, positive reception at ASCO from the discussant. Uh, characterizing d flat as a new standard of Care Moving Forward. Um, and I think that again, when you take a look at the incidence of gastric cancer across, uh, the globe. This is an opportunity certainly for a very very uh important uh, opportunity forward in the US priority review for for, for Matterhorn, uh, together with the guidelines updates. I think, uh, speaks really well to the opportunity there on in her 2.
Our expectation is that with the transformative 40 months and progression. Free survival clear, uh uh uh uh, superiority on a PFS basis over thp. Um, and really that that was done in a treat to progression context that we will see, um, the utilization of dbo9 in line with the clinical study, I think, on top of that. Also, that the, uh, the CR rates of 15% versus 8% is something that has really struck the investigator Community as something really, really important. And you don't know which of those patients might get those complete responses. And uh, what we do know is that treat to progression is the design.
Line of the study that resulted in the clinical benefit that we saw within dbo9 in the phase 3. So there is certainly some interest and hypotheses and understanding certain sub segments and how duration of therapy might uh be uh modulated within those but I don't expect that it launched that that's what we're going to see. And I would also just point to that, you know, we've seen treat to progression as the primary behavior that we see with 03 04 and 06 in the marketplace. And while dbo9 is a slightly different context. I again, expect that that to be uh, the predominant behavior, that we'll see uh, forward. So that patients get the best chance to achieve the results that we're seeing within the studies.
Induction versus maintenance. I mean, of course, everybody can always speculate all sorts of things, but in the end, Medical Practice has to be ruined by data. So you can speculate, it's a useful hypothesis, but then you have to test it with a with a clinical trial until you have data. It's a little bit uh uh dangerous. I think to speculate uh patients lives depend on those treatments and doctors should really stick to the data. The other comment I would make is maybe taking advantage of the infini. Question is, I personally think that because there are so many indications that are developed for infini new indications. Some of them are smaller. Some others are bigger overall. It looks like infini has been a little bit. Uh, the potential of infinia has been a little bit underestimated, maybe, because possibility is difficult to forecast, all those indications. But, if you look at the first half, I mean, infini grow 21%, and for the second quarter,
Alone. We had a growth of 26%, and if you look at our top products, of course, Road is still leading the race, with FSO as number 2, but in PHYSI, our number 3 product.
So, it's a very large product, very important product for us and, of course, for patients. I think it's important to really sort of consider all those smaller indications that collectively will actually fuel the growth of this important product.
Um, the third question is going from Gonzalo Rash at Danske Bank over to you, Gonzalo.
Hello, and thank you for taking the questions. Um, the first 1 I went to ask is on tohake maps on the COPD program, uh with without coming in in 812026. And we recently saw a and from row Andy reporting somewhat mixed data in COPD, putting some questions around the area of 333 Pathways in in PD. So I was wondering if you could give us some words on your view on Torah given the recent events in the space. And my second question, it's on anab as as you mark mentioned that you recently reported that the program did not meet primary endpoint uh but there is a subgroup where you see positive outcomes. I was wondering if you could expand a bit on that on who are these patients and how big this population is and give us some some flavor on what is in in your eyes. The likelihood of FDA approval for this subset of patients with data you have now. Thank you very much.
Thanks, Conselho. So, Sean, do you want to take the first one and Mark will take the second one?
Sure. So that your question regarding to Raab and COPD, uh, I will say, broadly that not all molecules are the same and we believe that we have a differentiated profile in TOA Raam as our IL 33. Monoclonal antibody 1 of the features that differentiates to aab is that it can inhibit signaling through both the st2 pathway as well as the rage egfr pathway and we think that's incredibly important in COPD because rage ETF are helps Drive uh epithelial Remodeling and mucus production. We know that's important in CPD because mucus is driving exacerbations. And exacerbations are driving mucus production. Remember that we had uh, a phase 2
Study Frontier 4, which is a small proof of concept study in patients with COPD recruited irrespective of blood eosinophil uh counts. And we saw a clinical benefit in lung function and reduced risk of COPD worsening against in both current and former smokers. So we look forward to the readout of the lunar program next year and that includes the over on Titania and Miranda, trials for TOA.
So accounting.
Map. So let me remind you that we conducted 2, uh, clinical studies phase 3, clinical studies in mayo stage 3 to 1 in 3A, and 1, in 3B.
The both studies were an add-on to Plus Muscle Discretas Cboard, but also, uh, data mapping was possible.
And the third remark I would like to make is, obviously, this condition.
It is very severe, with the fact that there is fatality and severe mobility issues.
Now to answer your question more directly about this prespecified subgroup, I'm not going to comment further today, but I can only say that this is a sizable minority, and the clinical benefit that we have seen is very meaningful.
Thank you, Mark. Uh, next question is, uh, searching at Bank of America? What are you searching?
And, um, 1 and then 1, uh, respiratory. If that was, okay, so firstly on, um, data of Ansar T07, any color on timing of a Vans are relative to T TS7.
Which is how do you view the probability of those two studies? I think investors have been more cautious on X7 given PD-L1 costs and lack of GCS.
And then the second question was just going back to the PRIME-1 on TOSO. So, Sharon, thanks to Francis on RAGE and the Phase 2 data. But I wondered if you've looked at the event rates you're seeing within that study.
Ability to change here, given that it's been the issue that both, uh, the competitors have had.
Thank you.
Sean, do you want to start with a second one and then maybe Susan? You'll take the aan.
Sure, as well, continue with the topic of Toso Rakim. We won't comment on event rates in our ongoing studies. I am aware that some of the other companies noted that they saw a slowing of events during COVID-19. We can't comment on the ongoing study, but as I mentioned earlier, we remain very positive about the potential for Toso AAB to become a new medicine for patients with COPD. We're doing that based on the encouraging outcomes from our Frontier 4 studies, and we continue to move forward recruiting at PACE for our own program. And so, we look forward to that readout next year.
I'm I'm so for, thanks for the question on on, on data of Anza, obviously. Um, but the tilo uh, 7 study, you know, given its also a first line study in in um, you know, you might have, uh, expect that the event rates for a vanza are going to be reflected in event rates generally across, uh, the first line studies for the combinations of of data plus, uh, IO. Um, so we'll have to wait and see. I mean, uh, I would just comment that avanza completed a cruel. Um, you know, it's an i at an earlier time point. So that's 1 1 1 1 piece just worth but bearing in mind and I think, um, you know, as as well, the learnings that we've had across the program. Um, from a biomarker perspective, you know, we're looking to see how we can, uh, you know, think about how those might be uh, used uh, across the program for data way as well.
Thank you, Suzanne. Next question is from Sheamus at Google. Over to you, Smash.
Oh thanks very much. Had a little unmute problem um so I 2 questions very quickly. So you know, Dave I think historically when we talked about the opportunity for um, and her to
The numbers that, you know, we could comfortably get to, uh, in our own models were north of $10 billion.
Um, especially considering the success that we've seen within heru so far. Can you just help us understand a little bit the path to, you know, uh numbers north of or at 10 billion dollars for this opportunity? I think it's also starting to show through a little bit that astrozen market performance in some of the uh, you know, direct reported markets is actually outperforming um perhaps what we may have assumed in, in partnered markets. So, just trying to get a better understanding of the future of and her to, um, you know, as we look at the, the overall growth trajectory and then just the second question. Um, as we think about the opportunity in cardiovascular disease, you know, Pascal we've really seen opportunities emerge, um, from astroica over time in several categories, where you were either third to Market um, or came on very short.
Strong from a, from a fourth or third to Market position. And uh, ultimately became the third or second largest product in category in finzy being a great example. What do you see as the opportunity in obesity for Astros existing product portfolio in that context? Particularly as uh,
You know, some of the large very established second players. Uh, seem to be stumbling. Thanks so much.
Thanks so much. Uh, Dev do you want to take the first 1?
Towards really reinvigorating, growth beyond what we had seen so far with 03, and I'm really pleased that we've seen strong sequential growth, not only in q1, uh, but also continuing into Q2 and I think that that's, you know, double digit sequential growth that we're seeing on in her, to is coming as a result of, really driving, uh, across the various growth opportunities that we've got within the marketplace. So, um, within the US specifically, we see dbo6 driving launch growth along with contributions coming from, uh, the tumor agnostic label as well as dbo3 within Europe. We're seeing uh, dbo3 growth along with, uh, continued, uh, opportunities as we're, uh, making inroads into the her to low and then again the EM um uh uh uh progress that we're making and, and really driven by China, um, in in, in no small part, I think has been uh, really really very, very encouraging to see. So if we take a look at the opportunity for in her to, in terms of
Where could we get to if we imagine at Peak? I think that, uh, we can very much see that we'll see contribution across regions. And then in addition to that, I think that, you know, dbo9 represents a very, very important opportunity to move into the Frontline setting.
As Susan mentioned in her comments, there are many patients who don't get an opportunity to be able to see a treatment in the second line. So there are more patients available in the front line, um, and that's why dbo9 represents an important growth opportunity above and beyond what we've been able to achieve with those 3. Of course. Also, the duration of therapy is something that we would expect to be longer, uh,
11 and 05 together, represent near Blockbuster opportunities as we move into the early setting and there's still clearly a lot more opportunity that we've got to move forward. Um in the ultra low segment for the successes that we've had in dvo 6. Uh Sheamus ultra low remains a place where we still have uh, opportunity for continued progress. And I expect that we'll be able to make that. Um, and then finally, we see combinations uh, as part of the future combinations, with our novel IO, uh, by specifics, being an opportunity for growth down the road. So in her to um, is really delivering nicely against, uh, our vision to be able to be uh, 1 of the largest uh uh medicines in our portfolio.
Thanks David. So your second question Sheamus. It's a great question, actually because it gives me a chance to recognize the incredibly talented team we have in this company, not only commercial commercially. I mean, the, the commercial teams around the world are really absolutely exceptional. Uh, you've just mentioned yourself that in her 2 is doing better than you would. You expected? And Deb is and his team are doing, you know, incredibly
Good job everywhere.
Old and his team are doing a great job, uh, Samuel, rare disease. So if we now look at your specific question, one aspect is really the quality. The talented teams we have in every geography, and quite frankly, it's taken us 10 years to build.
The team we have today, uh, in every country, because it's not that simple. Uh, so that's number one. Number two is we have, uh, a tremendous footprint, and, you know, our, our, our is, of course, we follow the science, but it's also that we bring our medicines to as many patients as possible around the world.
And so that means the emerging markets that means China. That means every single country around the world, we want to bring our medicines to those people and we should remember that, there are many, many more people living outside, the US and Europe than inside those 2, important geographies. And if you look at fika, it's a good marker of this and my great majority of our cell is this day is they come from countries that are not the US, US is very, very important, of course, but still as soon as you have a medicine that is Affordable easy to take like a normal age and then you can reach out to the millions, hundreds of millions of people around the world, do we need our medicine? So so the talent, the footprint
The way we develop those products.
I think we always try to be Innovative and knowledge. Agent is a different route. Of course compared to an injectable. It would be easier, seem cheaper. But also our our clinical development programs.
uh, we Leverage The combinations people, you know, people who suffer from
And all the secondary considerations that you can think about. So then these people typically the the software from other complications hypertension, uh, cholesterol, uh, this lipidemia, uh, kidney disease, Etc. So we really try to look at how do we address all the components of this metabolic syndrome, um, by combining our products? So our offering will be not only an all agent but it's also going to be uh, combinations and addressing all the risk factors. Uh, so we we what we try to focus on is less
The sort of uh what you might call the Cosmetic obesity Market, which you know, is a consideration for some people, but we believe the most important piece is really Central uh, fat and and, and they insulin resistance and all the the consequences of this. But I'd also like to ask her what maybe to tell us a little bit about uh what we're going to do with this cardio. Metabolic uh uh uh franchise. Yeah. No, thank you so much Pascal. And I think you have summarized it quite well. We truly believe we have a, a differentiated strategy here. We have a long Heritage, uh, as you already mentioned in, in, in this disease area, there's a deep understanding from a science perspective, and I have to say, we have excellent relationships across the world, with top cardiologists, Internal Medicine Physicians. Um, and I think the combination and the different
Mechanism of action is a true differentiator. There are so many people who are overweight and have very serious, uh, risk factors like the the ones you you mentioned and the fact that we have in our portfolio. I think a quite unique oral pcsk9, Sharon discussed the potential of burstaff. Uh, we discussed our own sglt2 Farah. That also means that if everything works and the oral GOP 1 is a, is a is is is let's say is a a medicine, it's relatively easy to combine it and it's will be then, uh, easily accessible for for so many people around the world. So I think it's a truly differentiated strategy. Uh, we are committed to it, we are investing a lot of, let's say resources, uh, money into it because we truly believe that we can change the trajectory of so many people around the world with cardiovascular and renal diseases.
Thanks to Peter Vald at BNP Paribas. Over to you, Peter.
For your board asked this question, but latest thoughts on tariff Dynamics and where expectations, or your expectations set. And what the current Administration is cooking up.
with respect to B and
all reforms.
Um, secondly, just for Sharon or mark on batch stat and the C5 data, I realize you can't go into any sort of quantification, um, but there are public data sets from competitors out there. So, can I push you on how the data Stacks up in your view, is it the overall, uh, profile of esy safety and convenience or can we train? The, you know, there is superior efficacy on either asset.
And then lastly, I hope you don't mind just a third one, Sharon, up a scale. Just because most people on the call today probably hopped over from Novo's profit warning call earlier. Um, you've got a clear strategy for BT. It's not going to play out until next decade, um, but it's likely that investors are going to increase in the question of BT's market value expectations going forward. So, can you confirm that when you think about future pricing, it's a materially lower level than the current GW GP1 price? Thank you.
Thank you, Peter. So I had the world board at the beginning. I'm not sure if I captured your question, I think your question was about tis and also, uh, mfn. So maybe correct tis are. Now you want to take that 1?
Sure. Um so I think your question was whether you know, the tariffs that we expected or are in line.
Clearly, the, the tariffs between us and, uh, Europe have been announced. I think it's still, uh, is a question of timing. And what happens with the, you know, with with the administration, when they get implemented, Etc, uh, we had mentioned on our first quarter call that, um, you know, we have pretty good and segregated Supply chains.
And therefore, uh, there's only a handful of products where we do import some products from Europe into the U.S.
We were managing, you know, through inventory and so forth. But any impact, even if there is, is going to be very short-lived since we've already started the tech transfer process.
Thank you. And now on the MFN, maybe I can take this 1 and U.
uh, we've had uh, as you can imagine many interactions with the administration at different levels, the industries had other companies, and we as a company,
I've had several interactions. I've certainly had many interactions. And you know, we've basically shared what we think could be done because I do believe a rebalancing is needed.
uh, Equalization, if you want to call it this way of pricing, or rebalancing of pricing around the world is necessary, the US can no longer
Uh, pay for the R&D for the world. I mean, it's uh, not sustainable. So we need to have a, a fair sharing of the cost of R&D in our industry across rich countries. And of course, you know, poor our countries, we need to be more flexible with price but which countries need to share and then share. And and, you know, uh, you have to consider GDP levels etc, for sure. So we've actually made a number of proposals, of course, as you know, the pricing. Uh,
Structure in the US. And the US market is a huge Market. It's a complicated Market, uh, pricing is very complicated, so there's a lot of technicalities involved.
um, but we we did make our our proposals which we believe could achieve
What the president is trying to achieve.
But we also need your help to increase their share of GDP allocate to Innovative Pharmaceuticals. I mean if you think about it today the US spends 0.8% of GDP in Innovative Pharmaceuticals 0.8%.
The UK and many countries in Europe, Germany is better, but many countries in Europe, spend 0.3% of GDP.
That's not enough. Um, they need to increase it and actually increasing it would be good. Not only for patients because we talk about trust, but it's not only a question of price question of access in many countries and in Europe people or patients. Wait for years to get access to medicines. That could save their lives. So it's a question of access not only price, the second reason, it would be good for Europe. Is we bit of our sector is a great sector in terms of
Science Innovation, creating jobs and economic value. So you know today Innovation I I mean I started in the industry a long time ago and at the time Innovation was driven out of Europe. Um, and we were selling uh, you know appeals really today Innovation is driven out of the US.
There's an explosion of Technologies as you know, that is driven by all this Investments that has taken place. China is ramping up as we've talked about before very rapidly and sadly Europe is falling behind so. So I think this rebalancing needs to take place not only for the industry but also uh and and not only for the US pricing level but also so that that Europe can actually contribute to this Innovation and then benefit from it in terms of value creation and economic development.
um, but you know, the administration is considering all these things and we'll see what comes out of, uh, of all these proposals, that different companies may have made a on the C5 data last Mark to comment, but I want to make a quick comment, you know, we
We all we really want to be respectful of congresses and data presented at the Congress. We don't want to the disclose data ahead of the Congress because we want to be respectful of the processes that are in place. And uh the right of Congress to keep the data until it's presented, but maybe Mark in a minute wants to, um, make a few points. The last point I will make about, uh, the so-called obesity. I've never really liked. As I said, the award obesity for me, it's about weight management.
with prices that are affordable and then and then players and patients around the world should benefit and then should be a reimburse because if you address that you're going to really help patients, but at the end of the day,
these are chronic treatments.
And uh essentially you have to be easy to take and you have to be affordable so people can take these medicines for a long time so to talk a little bit long but Mark over to you for the C5 data. Yeah. So
As as you would advise Pascal. I'm not going to be able to talk about detailed data. What I can say on top of what I've uh uh expressed in my prepared remark is that the rapid onset?
In patient-reported outcomes, this is going to be a strong point of this, uh, give you really map.
And overall uh for our C5 franchise, I think it will be a very good. Uh it will complete the uh injectable franchise infusion franchise that we have with driss.
And Solaris in Masta gravity. So we see it as a complimentary uh, product and addition to the strong franchise that we have today.
Thank you.
Okay.
Thank you very much. Um, 2 questions if I can the first on the C5 franchise, um, Mark, I'd be very interested to understand the Dynamics in the market with the first launch of Solaris biosimilars.
Are we seeing any signs of payers in the US or xus introducing step edits or therapeutic? Substitution forcing patients back down to buy a similar Solaris away from ultomiris.
And then a question for iskra on Varga bbp.
Can you remind us how much a far sea is in China? Uh, and also I realize you don't know yet what the potential financial impact is. But in the past, AstraZeneca has previously given guidance on other VBP products suggesting that potentially sometimes there are commercial measures that may offset the impact of VBP. And I just wondered whether that was something you expected to see here.
Thanks very much Mark. Do you want to take the first 1 and
To try to address your question. I think the, uh, the the continued progression of ultem and the, uh, you know, the the increasing also conversion from Solaris, to Mis, I think brings part of the, of the answer. So we do not have uh, we do not face a sort of a back to Bayou. Similar Solaris from payers once once the conversion has been established in any given indication or any given Market, uh, usually to me is uh has a very sustainable growth.
Thanks. Mark is
Uh thanks for the question. So uh as you know for Sega represent a very important uh growth driver for our cvrm portfolio, in China and uh both in uh diabetes as well as in CKD and heart failure indication. As we already communicated and rude already mentioned and we do expect vbp for for Sega as part of batch 11 with the with the impact in the second half of this year. Your question is very, very right. There are definitely the the different implications of the of the usage of the drugs in a post vbp setup. And uh you you know that vbp is usually driving much broader utilization and broader access for many more patients and giving the unmet need in China. I'm sure the
The, the for Sega and sglt2 Clause will be widely used. Which means that in, um, in the in the, in the short period, you can anticipate the reduction primarily driven by by price. But equally you can expect the tail, uh, and the potential increase volume driven as we saw in, uh, many other brands in the post vbp time in China. So basically we anticipate very similar Trend to the brands, like Crestor, for example, in the, in the, in the past.
You'll refer to commercial.
Description.
And if you look at Crystal, that's what we have been able to achieve, uh, patients, get a script from their doctors and more and more. They get electronic script these days through, uh, video, uh, consultation and then they get their, uh, Crestor delivered uh, to their home. Um, and, you know, a lot of people prefer to pay
uh,
25 or 30 dollars. I think it costs delivered to their home, rather than going to the hospital and queuing to have it for free. So, we think we can actually do a similar approach in.
Uh in with with far, sigue in China, of course sales will be lower, but as I said there will be there will be quite quite a tale and actually quite interestingly you see, uh, in some parts of the US, similar Behavior. Sometimes people can't put up with all the her doors of getting reimbursed and they decide just to pay out of pocket and be done with it. So if the product is at a price that is Affordable and you can get it delivered to your home, of course, you need a script but it's it's a convenient option for patients. Um,
Hajan shama at Goldman over to you, hon.
Hi. Um, thanks taking a question. So just on the bread disease, um, side of things. So, 1 of the chi cast lists this year is obviously ants Alpha. Could you just help us understand what the target profile is for the drug, particularly in the context of strength, in the same setting? Um, what's the residual? And that need their, thank you.
So, thank you for this uh, question on for Alpha. So first of all has been developed in both the adults and pediatric indications and our goal is to achieve a much wider Geographic coverage than we have with fencik. Coverage of strength is strong in a few countries but the uh, access. And the reimbursement uh, is has been slower in other parts of the world.
Now, if you look at the 2 uh the 2 products uh it seems for this Alpha will be uh 1 Administration, 1 injection, every 2 weeks. And if you compare this to strength, you have either 6 or 12 in the same period of 2 weeks. So, it will have a great uh uh, you know, patient benefits. Um, as I said earlier on, we will, uh, have the results of our face sweet trials towards the end of the year.
And we look forward to uh bringing this new uh therapeutic solution to many countries around the world.
Thanks Mark. Michael lushan at Jeff over to you Michael.
Thank you for taking the question. Um, quick question on the party redesign place, um, 1 of your European competitors talked about how the volume uplift. Um, in the second quarter was below their expectations and the overall impact, from from the party. You design redesign, maybe not as, as so, your, your oncology franchise overall performed. Very, very strongly in the second quarter. So wondering, if you could talk to was that despite the party, we designed maybe not having the volume effect or or did you not see that slower up taking? You're quite happy with what you saw. Thank you.
Dave, I mean it's really mostly an OC question. Do you want to cover that? Yeah, be my pleasure. So, Michael, um, you know I commented last quarter that.
The part D redesign really was a rebasing event as we saw the gross to net impact.
Take place for, um, paying for the offset for the co-pay capping. And we've also talked about how we've seen an offset. In addition to that, with fewer patients on free drug, lower abandonment rates, and so some of these elements, uh, really coming into play to help to offset the additional liability that we've.
Face.
With calquence, we look forward to the opportunity to continue to take advantage of uh the um uh leading share position that we have and, and moving forward with that, and getting ready for the amplify launch as we move to a finite option. So, um, I would say that this is playing out consistent with our expectations and how I believe that we've been talking about it for the last year or so.
Thanks everybody. Take 1 last question.
Hi, thank you, Pascal. Um, a big picture 1 really. So, I mean, it's intriguing that the diversification of Astra is very clear and we've heard a lot of it through the call today. Um, you've also seen an unprecedented number of positive trial readouts, but there's still a bit of a leaning towards oncology. I mean, the great that we now see in Finley with so many, um, uses in cancer potentially on track to be your highest selling drug. So, I'm just wondering
2 things really has the mix of your 2030 Revenue, ambition, shifted and how confident are you that you now have the right number of therapy areas at Astra and that your end-to-end pipeline filling is sufficient.
Um, to sustain the company, uh, through to the next decade. So I guess it's really where are the gaps that you see, given all of the infilling that you have very successfully achieved. Thank you.
Pastor.
I'm not, I suspect actually would would take offense of that comment because I mean in the first half, if you look at it, oncology was almost 12 billion.
11.95 and by far, I was 11.2.
And, uh, still growing. So it is a very important part of our company, and I think it, uh, should not be underestimated. Is the fact that in the emerging markets, in particular, the foundation of our presence?
Is actually bio bio Pharmaceuticals. And it's key because that creates the platform to then launch products in oncology in rare disease. If you start from very little, uh, it's hard and you don't have the talent. I mean, many geographies, you know, I was in the Middle East, southeast, Asia, major geographies. We've been able to build really, really talented people teams because we've we've got this presence and we've attracted those people. And then, on this Foundation of Bio Pharmaceuticals, we actually can add oncology, which is really great opportunity for each car in the Emerging Markets. Um, but also our disease where Mark has been
And the team have been driving quote, so that's 1 aspect. The second aspect is if you actually look at the pipeline,
There are several medicines that are actually going to drive our future in about, so what we call bio Pharmaceuticals in, uh, respiratory disease. We have several products. I mean, those are commercializing, and then new ones. And in cardiovascular medicine, we have quite a number of products that can be big. I mean, on all pcsk9, if, if it works, the way, we hope it will work. Has enough potential around the world. PCS cannot great products, but they are injectable, they are kind of expensive outside the US, they use is limited. If you bring in an affordable, uh, overall agent, you have a huge potential, uh, hypertension, huge potential. A lot of people across the world have again, this sort of central fat, even though they may not look overweight, that's not whole fight and then, uh, insulin resistance and they have hypertension huge potential. Uh, same for, of course, the whole group 1. So I think over the next few years, if our pipeline delivers, the way we, uh, are hoping
It does and we started well with back, so you'll see a great growth in cardiovascular disease. So as to the point about do we have enough uh, CRP areas. I think yes, uh,
You know, we can always go and explore new things but the big what are the biggest killers in the world?
Cardiovascular disease is number 1, respiratory disease. People forget always that, uh, mortality from asthma attacks or COPD attacks is high and the third is oncology so we are actually addressing the 3. Biggest 1C. I mean, oncology methology. We are actually addressing the 3, biggest killers in the world.
Um, you know, and we'll end the science is exploding, not only oncology but now in cardiovascular and respiratory disease and Immunology. So I think we have enough and
Uh, you know, we have a very focused on.
The technologies to grow post-2030.
So with this, uh, thank you so much for all your great questions and your interest and uh, I will wish you a great day.