FORM 6-K
 
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
 
Report of Foreign Issuer
 
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
 
For the month of April 2019
 
Commission File Number: 001-11960
 
AstraZeneca PLC
 
1 Francis Crick Avenue
Cambridge Biomedical Campus
Cambridge CB2 0AA
United Kingdom
 
 
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
 
Form 20-F X Form 40-F __
 
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
 
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ______
 
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
 
Yes __ No X
 
If “Yes” is marked, indicate below the file number assigned to the Registrant in connection with Rule 12g3-2(b): 82-_____________
 
 
 
 
AstraZeneca PLC
26 April 2019 07:00 BST
 
Q1 2019 Results
Another strong top-line performance, with operating leverage supporting compelling growth in earnings
 
Results in the first quarter were supported by Product Sales growth of 10% (14% at CER1) to $5,465m, a reflection of the sustained performance of new medicines2 (+77%, +83% at CER). Global Oncology sales increased by 54% (59% at CER), New CVRM3 by 15% (19% at CER) and, driven by the strength of Fasenra, Respiratory sales increased by 9% (14% at CER). Emerging Markets sales increased by 14% (22% at CER); China sales increased by 21% (28% at CER), with ex-China Emerging Markets also delivering strong growth at CER. US sales increased by 20%, while Europe sales declined by 12% (6% at CER). Japan sales increased by 26% (27% at CER) to $501m.
 
The Reported Operating Margin increased by seven percentage points to 20% and the Core Operating Margin increased by 13 percentage points to 30%. These financial results were accompanied by further positive pipeline developments, with 2019 set to be another busy year for news flow.
 
 
 
Q1 2019
 
 
$m
 
% change
 
 
Actual
 
CER
 
Product Sales
5,465
10
14
Collaboration Revenue4
26
(87)
(86)
Total Revenue
5,491
6
11
 
 
 
 
Reported5 Operating Profit
1,097
58
68
Core6 Operating Profit
1,650
84
96
 
 
 
 
Reported Earnings Per Share (EPS)
$0.47
75
90
Core EPS
$0.89
85
100
 
Pascal Soriot, Chief Executive Officer, commenting on the results said:
"Our 14% Product Sales growth in the quarter reflected the success of our new medicines and Emerging Markets. In Oncology,TagrissoImfinzi and Lynparza continued to do well and, in BioPharma, FarxigaBrilinta and Fasenra also grew strongly. Emerging Markets, our largest sales region, delivered an outstanding performance with a 22% growth rate; all of its sub-regions grew strongly, including China at 28%.
 
Our Core Operating Profit almost doubled, demonstrating strong operating-margin improvement. Together with this encouraging financial start to the year, our highly-productive and sustainable pipeline continued to deliver, notably with a regulatory approval for Lynparza in the EU for the treatment of metastatic breast cancer and approvals of Farxiga in type-1 diabetes. The recently-announced collaboration with Daiichi Sankyo also broadened an exciting Oncology portfolio with a potentially-transformative cancer treatment that could benefit patients around the world. We appreciate the support from our shareholders in realising this exceptional opportunity."
 
Financial summary
-  Product Sales increased by 10% in the quarter (14% at CER) to $5,465m
 
-  The Reported Gross Margin increased by two percentage points (three at CER) to 79%, partly reflecting the mix of Product Sales; the Core Gross Margin also increased by two percentage points to 80%
 
Reported Operating Expenses increased by 1% (5% at CER) to $3,858m and represented 70% of Total Revenue (Q1 2018: 74%)Core Operating Expenses increased by 1% (5% at CER) to $3,369m and represented 61% of Total Revenue (Q1 2018: 65%)
 
- Reported R&D Expenses declined by 1% (an increase of 3% at CER) to $1,266m. Core R&D Expenses declined by 1% (an increase of 3% at CER) to $1,225m
 
-  Reported SG&A Expenses increased by 2% (7% at CER) to $2,514m; Core SG&A Expenses increased by 2% (6% at CER) to $2,066m, reflecting ongoing additional support for new medicines and growth in China
 
-  Reported Other Operating Income and Expense increased by 26% (27% at CER) to $593m, primarily reflecting the impact of the divestment of US rights to Synagis; Core Other Operating Income and Expense increased by 379% (383% at CER) to $594m
 
-  The Reported Operating Margin increased by seven percentage points to 20%; the Core Operating Margin increased by 13 percentage points to 30%
 
-  Reported EPS of $0.47, based on a weighted-average number of shares of 1,267m, represented an increase of 75% (90% at CER); the Reported Tax Rate was 26% (Q1 2018: 16%). Core EPS increased by 85% (100% at CER) to $0.89; the Core Tax Rate was 23% (Q1 2018: 18%). The tax rates reflected the geographical mix of profits and the impact of divestment transactions
 
-   On 29 March 2019, the Company initiated an equity placing of $3.5bn in conjunction with the recent strategic collaboration with Daiichi Sankyo Company, Limited (Daiichi Sankyo). The purpose of the placing was to fund the initial upfront and near-term milestone commitments arising from the collaboration, as well to strengthen AstraZeneca's balance sheet. One of the Company's capital-allocation priorities is to maintain a strong, investment-grade credit rating; the share issuance struck an appropriate balance between the Company's equity investors and creditors
 
Commercial summary
Oncology
Sales growth of 54% in the quarter (59% at CER) to $1,892m, including:
 
    -  Tagrisso sales of $630m, representing growth of 86% (92% at CER) that was driven by the 2018 regulatory approvals as a standard of care (SoC) in the 1st-line EGFR7-mutated (EGFRm) NSCLC8 setting. There was a sequential decline in US sales of Tagrisso reflecting inventory and gross-to-net movements; underlying demand growth, however, remained strong. Globally, Tagrisso became AstraZeneca's biggest-selling medicine in the quarter
 
    -  Imfinzi sales of $295m, representing growth of 376% (381% at CER). The performance was a result of ongoing launches for the treatment of patients with unresectable, Stage III NSCLC. The majority of sales of Imfinzi were in the US, where it is the only approved medicine following SoC chemoradiation therapy (CRT) for the curative-intent treatment of patients with Stage III, unresectable NSCLC
 
    -  Lynparza sales of $237m, representing growth of 99% (105% at CER), driven by expanded use in the treatment of ovarian and breast cancer, including a particularly strong launch in the US as a 1st-line ovarian cancer treatment
 
    -  Oncology sales growth in Emerging Markets of 35% (46% at CER) to $490m
 
New CVRM
Sales growth of 15% in the quarter (19% at CER) to $1,033m, including:
 
   -   Farxiga sales of $349m, with growth of 17% (23% at CER), ahead of an anticipated label update in major markets to reflect results from the DECLARE trial
 
    -  Brilinta sales of $348m, representing growth of 19% (24% at CER), due to continued market penetration in the treatment of acute coronary syndrome and high-risk post-myocardial infarction
 
    -  Bydureon sales of $142m, an increase of 2% (4% at CER), despite the impact of supply-chain constraints that are anticipated to ease later in the year
 
    -  New CVRM sales growth in Emerging Markets of 26% (40% at CER) to $239m
 
Respiratory
Sales growth of 9% in the quarter (14% at CER) to $1,283m, including:
 
   -   A Symbicort sales decline of 8% (3% at CER) to $585m. US sales, at $176m, declined by 4%, reflecting continued pricing pressure and the impact of managed-market rebates, partially offset by positive volumes from government buying and a favourable gross-to-net adjustment. Emerging Markets sales increased by 4% (13% at CER) to $133m
 
    -  Pulmicort sales growth of 11% (16% at CER) to $383m
 
    -  Fasenra sales of $129m, representing growth of 514% (524% at CER). In the US, new-to-brand prescription data showed that Fasenra was the preferred novel-biologic medicine for the treatment of severe asthma during the period, despite being the third medicine to enter the market
 
    -  Respiratory sales growth in Emerging Markets of 18% (26% at CER) to $518m, driven by the aforementioned sales growth of Pulmicort
 
Emerging Markets
The Company's largest region by Product Sales, with growth of 14% in the quarter (22% at CER) to $2,004m, including:
 
    -  A China sales increase of 21% (28% at CER) to $1,242m. Highlights included Oncology sales growth of 43% (51% at CER) to $284m and Respiratory growth of 25% (31% at CER) to $400m
 
       -  An ex-China sales increase of 3% (13% at CER) to $762m; every Emerging Market sub-region delivered strong growth at CER. Notable performances included sales of $281m in (non-China) Asia-Pacific (+5%, +9% at CER) and $49m in Russia (+44%, +68% at CER)
 
Pipeline highlights
The following table highlights significant developments in the late-stage pipeline since the prior results announcement:
 
 
Regulatory approvals
-     Lynparza - breast cancer (BRCAm9): regulatory approval (EU)
-     Forxiga - T1D10: regulatory approval (EU, JP)
-     Duaklir - COPD11: regulatory approval (US) (by partner)
Regulatory submissions and/or acceptances
-     Lynparza - breast cancer (BRCAm): regulatory submission (CN)
-     Farxiga - T2D12 (CVOT13): regulatory submission acceptance (US, EU)
-     PT010 - COPD: regulatory submission acceptance (US, EU)
Major Phase III data readouts or other significant developments
-     Lynparza - pancreatic cancer (BRCAm): met primary endpoint
-     selumetinib - NF114: Breakthrough Therapy Designation (US)
-     Brilinta - CAD15 / T2D (CVOT): met primary endpoint
-     saracatinib - IPF16: Orphan Drug Designation (US)
 
FY 2019 guidance reiterated
The Company today reiterates its FY 2019 guidance. All measures in this section are at CER and Company guidance is on Product Sales and Core EPS only. All guidance and indications provided assume that the UK's anticipated exit from the European Union (EU), even in the event of a no-deal exit, proceeds in an orderly manner such that the impact is within the range expected, following the Company's extensive preparations for such an eventuality.
 
 
Product Sales
 
A high single-digit percentage increase
 
 
In addition to the aforementioned Product Sales growth, the Company anticipates productivity gains and operating leverage in FY 2019. Core Operating Profit is anticipated to grow at a faster rate than Product Sales, despite an anticipated decline in the sum of Collaboration Revenue and Core Other Operating Income and Expense vs. the prior year. More details are provided below.
 
 
Core EPS
 
$3.50 to $3.70
 
 
Variations in performance between quarters can be expected to continue. The Company is unable to provide guidance and indications on a Reported basis because the Company cannot reliably forecast material elements of the Reported 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.
 
FY 2019 indications
Outside of guidance, the Company provides its indications at CER for FY 2019 vs. the prior year:
 
   -  The Company anticipates strong and sustainable Product Sales growth to be accompanied by operating leverage, leading to an improvement in profitability. In FY 2019, the cash performance is expected to be adversely impacted by a number of one-off payments relating to prior business-development transactions; a significant proportion of these payments was made in Q1 2019
 
    -  As part of its long-term growth strategy, the Company remains committed to focusing on appropriate cash-generating and value-accretive collaboration and divestment transactions that reflect the ongoing productivity of the pipeline and the Company's increasing focus on its main therapy areas. The sum of Collaboration Revenue and Core Other Operating Income and Expense, however, is anticipated to decline vs. the prior year
 
    -  Core Operating Expenses are expected to increase by a low single-digit percentage. Specific support for medicine launches and AstraZeneca in China historically has delivered compelling results and elements of that support will continue. The Company will retain flexibility in its investment approach
 
    -  Core Operating Profit is anticipated to increase, ahead of Product Sales, by a mid-teens percentage vs. FY 2018
 
    -  Capital expenditure is expected to be broadly stable and restructuring expenses are targeted to reduce vs. the prior year
 
    -  A Core Tax Rate of 18-22% (FY 2018: 11%)
 
Currency impact
If foreign-exchange rates were to remain at the average of rates seen in the period January to March 2019, it is anticipated that there would be a low single-digit percentage adverse impact on Product Sales and Core EPS. In addition, the Company's foreign-exchange rate sensitivity analysis is contained within the operating and financial review.
 
Sustainability
AstraZeneca's sustainability ambition is founded on making science accessible and operating in a way that recognises the interconnection between the health of the business, people and the planet and that each of these impact one another. The Company's sustainability ambition is reinforced by its purpose and values, which are intrinsic to its business model and ensures that the delivery of its strategy broadens access to healthcare, minimises the environmental footprint of its activities and products of medicines and processes and ensures that all business activities are underpinned by the highest levels of ethics and transparency. A full update on the Company's sustainability progress is shown in the Sustainability section of this announcement.
 
Notes
The following notes refer to pages 1-4:
 
1.   Constant exchange rates. These are financial measures that are not accounted for according to generally-accepted accounting principles (GAAP) because they remove the effects of currency movements from Reported results.
 
2.   TagrissoImfinziLynparzaCalquenceFarxigaBrilintaLokelmaFasenra and Bevespi. These new medicines are pillars in the main therapy areas and are important platforms for future growth.
 
3.   New Cardiovascular (CV), Renal and Metabolism, incorporating Diabetes medicines, Brilinta and Lokelma.
 
4.   Formerly Externalisation Revenue. Effective from 1 January 2019, the Company updated the presentation of this element of Total Revenue within the Statement of Comprehensive Income; see Note 1.
 
5.   Reported financial measures are the financial results presented in accordance with International Financial Reporting Standards, as adopted by the EU and as issued by the International Accounting Standards Board.
 
6.   Core financial measures. These are non-GAAP financial measures because, unlike Reported performance, they cannot be derived directly from the information in the Company Financial Statements. See the operating and financial review for a definition of Core financial measures and a reconciliation of Core to Reported financial measures.
 
7.   Epidermal growth factor receptor.
 
8.   Non-small cell lung cancer.
 
9.   Breast cancer susceptibility genes 1/2, mutated.
 
10.  Type-1 diabetes.
 
11.  Chronic obstructive pulmonary disease.
 
12.  Type-2 diabetes.
 
13.  Cardiovascular outcomes trial.
 
14.  Neurofibromatosis type 1.
 
15.  Coronary artery disease.
 
16.  Idiopathic pulmonary fibrosis.
 
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 and sustainable results from the pipeline.
 
 
 
Q2 2019
 
-      Tagrisso - NSCLC (1st line, EGFRm): regulatory decision (CN)
 
-      roxadustat - anaemia of CKD[17]: data readout (pooled safety)
 
H2 2019
 
-      Tagrisso - NSCLC (1st line, EGFRm): data readout (final OS)
-      Imfinzi - unresectable, Stage III NSCLC: regulatory decision (CN)
-      Imfinzi + treme - NSCLC (1st line) (NEPTUNE): data readout, regulatory submission
-      Imfinzi +/- treme - NSCLC (1st line) (POSEIDON): data readout, regulatory submission
-      Imfinzi +/- treme - small-cell lung cancer: data readout, regulatory submission
-      Imfinzi +/- treme - bladder cancer (1st line): data readout, regulatory submission
-      Imfinzi +/- treme - head & neck cancer (1st line): data readout, regulatory submission
-      Lynparza - ovarian cancer (1st line, BRCAm) (SOLO-1): regulatory decision (EU, JP, CN)
-      Lynparza - ovarian cancer (3rd line, BRCAm): regulatory submission (US)
-      Lynparza - ovarian cancer (1st line) (PAOLA-1): data readout
-      Lynparza - pancreatic cancer (BRCAm): regulatory submission
-      Lynparza - prostate cancer (2nd line, castration-resistant): data readout
-      trastuzumab deruxtecan - advanced/refractory, metastatic breast cancer (HER2[18]-positive): data readout, regulatory submission (US)
-      Calquence - CLL[19]: data readout, regulatory submission
-      selumetinib - NF1: regulatory submission
 
-      Farxiga - T1D: regulatory decision (US)
-      Farxiga - heart failure CVOT: data readout
-      Brilinta - CAD / T2D CVOT: regulatory submission
-      Lokelma - hyperkalaemia: regulatory submission (JP)
-      roxadustat - anaemia of CKD: regulatory submission (US)
 
-      Symbicort - mild asthma: regulatory decision (EU), regulatory submission (CN)
-      Bevespi - COPD: regulatory decision (JP, CN)
-      Fasenra - self administration and autoinjector: regulatory decision (US, EU)
-      PT010 - COPD: regulatory decision (JP, CN)
-      PT010 - COPD: data readout (ETHOS)
 
2020
 
-      Imfinzi - neo-adjuvant NSCLC: data readout
-      Lynparza - breast cancer (BRCAm): regulatory decision (CN)
-      Lynparza - ovarian cancer (1st line) (PAOLA-1): regulatory submission
-      Lynparza - prostate cancer (2nd line, castration-resistant): regulatory submission
-      trastuzumab deruxtecan - advanced/refractory, metastatic gastric cancer (HER2-positive): data readout
 
-      Farxiga - T2D CVOT: regulatory decision (US, EU)
-      Farxiga - heart failure CVOT: regulatory submission
-      Brilinta - stroke (THALES): data readout, regulatory submission
-      Epanova - hypertriglyceridaemia CVOT: data readout
-      Lokelma - hyperkalaemia: regulatory submission (CN)
-      roxadustat - anaemia of myelodysplastic syndrome: data readout
 
-      Fasenra - nasal polyps: data readout, regulatory submission
-      PT010 - COPD: regulatory decision (US, EU)
-      tezepelumab - severe asthma: data readout
 
 
Conference call
A conference call and webcast for investors and analysts will begin at 12pm UK time today. Details can be accessed via astrazeneca.com.
 
Reporting calendar
The Company intends to publish its first-half and second-quarter financial results on 25 July 2019.
 
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 its main therapy areas - Oncology, CVRM and Respiratory. AstraZeneca operates in over 100 countries and its innovative medicines are used by millions of patients worldwide. For more information, please visit astrazeneca.com and follow us on Twitter @AstraZeneca.
 
 
Investor Relations
 
 
Thomas Kudsk Larsen
 
+44 203 749 5712
Henry Wheeler
Oncology
+44 203 749 5797
Christer Gruvris
BioPharma (cardiovascular, metabolism)
+44 203 749 5711
Nick Stone
BioPharma (respiratory, renal)
+44 203 749 5716
Josie Afolabi
Other medicines
+44 203 749 5631
Craig Marks
Finance, fixed income
+44 7881 615 764
Jennifer Kretzmann
Corporate access, retail investors
+44 203 749 5824
US toll-free
 
+1 866 381 7277
Media Relations
 
 
Gonzalo Viña
 
+44 203 749 5916
Rob Skelding
Oncology
+44 203 749 5821
Rebecca Einhorn
Oncology
+1 301 518 4122 
Matt Kent
BioPharma
+44 203 749 5906
Jennifer Hursit
Other
+44 7384 799 726
Christina Malmberg Hägerstrand
Sweden
+46 8 552 53 106
Michele Meixell
US
+1 302 885 2677
 
 
Operating and financial review
 
 
All narrative on growth and results in this section is based on actual exchange rates, unless stated otherwise. Financial figures are in US$ millions ($m). The performance shown in this announcement covers the three-month period to 31 March 2019 (the quarter or Q1 2019) compared to the three-month period to 31 March 2018 (Q1 2018) respectively, unless stated otherwise. All commentary in the operating and financial review relates to the quarter, unless stated otherwise.
 
Core financial measures, EBITDA, Net Debt, Initial Collaboration Revenue and Ongoing Collaboration Revenue are non-GAAP financial measures because they cannot be derived directly from the Company Condensed Consolidated Financial Statements. Management believes that these non-GAAP financial measures, when provided in combination with Reported results, will provide investors and analysts with helpful supplementary information to understand better the financial performance and position of the Company on a comparable basis from period to period. These non-GAAP financial measures are not a substitute for, or superior to, financial measures prepared in accordance with GAAP. 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 restructuring programmes, which includes charges that relate to the impact of restructuring programmes on capitalised IT assets
 
    -  Other specified items, principally comprising acquisition-related costs, which include fair-value adjustments and the imputed finance charge relating to contingent consideration on business combinations and legal settlements
 
Details on the nature of Core financial measures are provided on page 76 of the Annual Report and Form 20-F Information 2018. Reference should be made to the reconciliation of Core to Reported financial information and the Reconciliation of Reported to Core financial measures table included in the financial performance section of this announcement.
 
EBITDA is defined as Reported Profit Before Tax after adding back Net Finance Expense, results from Joint Ventures and Associates and charges for Depreciation, Amortisation and Impairment. Reference should be made to the Reconciliation of Reported Profit Before Tax to EBITDA included in the Financial Performance section of this announcement.
 
Net Debt is defined as interest-bearing loans and borrowings net of cash and cash equivalents, other investments and net derivative financial instruments. Reference should be made to Note 3 'Net Debt' included in the Notes to the Interim Financial Statements section of this announcement. Ongoing Collaboration Revenue is defined as Collaboration Revenue excluding Initial Collaboration Revenue (which is defined as Collaboration Revenue that is recognised at the date of completion of an agreement or transaction, in respect of upfront consideration). Ongoing Collaboration Revenue comprises, among other items, royalties, milestone revenue and profit-sharing income. Reference should be made to the Collaboration Revenue table in this operating and financial review.
 
The Company strongly encourages investors and analysts not to rely on any single financial measure, but to review AstraZeneca's financial statements, including the notes thereto and other available Company reports, carefully and in their entirety.
 
Due to rounding, the sum of a number of percentages may not agree to totals.
 
Table 1: Total Revenue
 
 
 
Q1 2019
 
$m
% change
Actual
 
CER
 
Product Sales
5,465
10
14
Collaboration Revenue
26
(87)
(86)
 
 
 
 
Total Revenue
5,491
6
11
 
Table 2: Product Sales
 
 
 
Q1 2019
 
$m
 
% of total
 
% change
Actual
 
CER
 
Oncology
1,892
35
54
59
New CVRM
1,033
19
15
19
Respiratory
1,283
23
9
14
Other medicines
1,257
23
(25)
(21)
 
 
 
 
 
Total Product Sales
5,465
100
10
14
 
Table 3: Top-ten medicines
The top-ten medicines in the quarter by Product Sales are shown in the table below:
 
 
Medicine
 
Therapy Area
 
Q1 2019
 
$m
 
% of total
 
% change
 
Actual
 
CER
 
Tagrisso
Oncology
630
12
86
92
Symbicort
Respiratory
585
11
(8)
(3)
Pulmicort
Respiratory
383
7
11
16
Nexium
Other medicines
363
7
(19)
(16)
Farxiga
CVRM
349
6
17
23
Brilinta
CVRM
348
6
19
24
Crestor
CVRM
335
6
(14)
(9)
Imfinzi
Oncology
295
5
n/m
n/m
Faslodex
Oncology
254
5
-
4
Lynparza
Oncology
237
4
99
n/m
 
 
 
 
 
 
Total
 
3,779
69
19
24
 
Table 4: Collaboration Revenue
Ongoing Collaboration Revenue of $26m represented all Collaboration Revenue in the quarter (Q1 2018: $91m, 47%). A breakdown of Collaboration Revenue is shown below:
 
 
 
Q1 2019
 
$m
 
% of total
 
% change
Actual
 
CER
 
Initial Collaboration Revenue
-
-
-
-
 
 
 
 
 
Royalties
17
65
n/m
n/m
Milestones/Other[20]
9
35
(89)
(89)
Ongoing Collaboration Revenue
26
100
(72)
(71)
 
 
 
 
 
Total Collaboration Revenue
26
100
(87)
(86)
 
 
Product Sales
 
The performance of new and legacy medicines is shown below, with a geographical split shown in Note 7.
 
Table 5: Therapy area and medicine performance
 
 
Therapy Area
 
Medicine
 
Q1 2019
 
$m
 
% of total
 
% change
 
Actual
 
CER
 
Oncology
 
Tagrisso
 
630
 
12
 
86
 
92
 
Imfinzi
 
295
 
5
 
n/m
 
n/m
 
Lynparza
 
237
 
4
 
99
 
n/m
 
Iressa
 
134
 
2
 
2
 
7
 
Calquence
 
29
 
1
 
n/m
 
n/m
 
Legacy:
 
 
 
 
 
Faslodex
 
254
 
5
 
-
 
4
 
Zoladex
 
194
 
4
 
5
 
13
 
Arimidex
 
51
 
1
 
(6)
 
-
 
Casodex
 
48
 
1
 
(8)
 
(4)
 
Others
 
20
 
-
 
(26)
 
(22)
 
Total Oncology
 
1,892
 
35
 
54
 
59
 
BioPharma - CVRM
 
Farxiga
 
349
 
6
 
17
 
23
 
Brilinta
 
348
 
6
 
19
 
24
 
Onglyza
 
153
 
3
 
19
 
23
 
Bydureon
 
142
 
3
 
2
 
4
 
Byetta
 
30
 
1
 
(3)
 
-
 
Symlin
 
7
 
-
 
(22)
 
(22)
 
Legacy:
 
 
 
 
 
Crestor
 
335
 
6
 
(14)
 
(9)
 
Seloken/Toprol-XL
 
225
 
4
 
13
 
21
 
Atacand
 
50
 
1
 
(30)
 
(24)
 
Others
 
75
 
1
 
(12)
 
(6)
 
Total BioPharma - CVRM
 
1,714
 
31
 
4
 
9
 
BioPharma -Respiratory
 
Symbicort
 
585
 
11
 
(8)
 
(3)
 
Pulmicort
 
383
 
7
 
11
 
16
 
Fasenra
 
129
 
2
 
n/m
 
n/m
 
Daliresp/Daxas
 
48
 
1
 
26
 
29
 
Tudorza/Eklira
 
20
 
-
 
(29)
 
(25)
 
Duaklir
 
20
 
-
 
(29)
 
(25)
 
Bevespi
 
10
 
-
 
n/m
 
n/m
 
Others
 
88
 
2
 
9
 
15
 
Total BioPharma - Respiratory
 
1,283
 
23
 
9
 
14
 
Othermedicines
 
Nexium
 
363
 
7
 
(19)
 
(16)
 
Losec/Prilosec
 
76
 
1
 
10
 
16
 
Synagis
 
53
 
1
 
(76)
 
(76)
 
Seroquel XR/IR
 
37
 
1
 
(61)
 
(59)
 
Movantik/Moventig
 
25
 
-
 
(11)
 
(11)
 
Others
 
22
 
-
 
(66)
 
(66)
 
Total other medicines
 
576
 
11
 
(38)
 
(36)
 
 
Total Product Sales
 
5,465
 
100
 
10
 
14
 
Specialty-care medicines comprise all Oncology medicines and Fasenra. At 37% of Product Sales (Q1 2018: 25%), specialty-care medicine sales increased by 62% in the quarter (67% at CER) to $2,021m.
 
Product Sales summary
 
 
Oncology
 
Product Sales of $1,892m; an increase of 54% (59% at CER). Oncology Product Sales represented 35% of total Product Sales, up from 25% in Q1 2018.
 
Oncology: lung cancer
 
Tagrisso
Tagrisso has been approved and launched in over 80 countries, including the US, in Europe, Japan and China for the 2nd-line treatment of patients with EGFR T790M[21]-mutated NSCLC. By the end of the quarter, Tagrisso had been approved in over 65 countries including the US, in Europe and Japan for the 1st-line treatment of patients with EGFRm NSCLC; a number of additional regulatory reviews are also underway.
 
Product Sales of $630m represented growth of 86% (92% at CER), partly driven by regulatory approvals in the 1st-line setting. Continued growth was also delivered in the 2nd-line indication in other countries, including in Europe and Emerging Markets. Tagrisso became AstraZeneca's largest selling medicine in the quarter.
 
Sales in the US increased by 76% to $259m. Tagrisso was established last year as the SoC in the 1st-line setting with a very high penetration rate, following the April 2018 regulatory approval. Underlying demand growth remained strong in the quarter, despite adverse inventory and gross-to-net movements. Within Emerging Markets, Tagrisso sales increased by 94% (108% at CER) to $138m, with notable growth in China, where the medicine was added to the National Reimbursement Drug List (NRDL) with effect from January 2019. The Asia-Pacific region has a relatively high prevalence of lung-cancer patients with an EGFR mutation; at c.30-40% of the total, this contrasts with c.10-15% in the Western Hemisphere.
 
In Europe, sales of $100m represented an increase of 45% (55% at CER), driven by further growth in testing rates, positive reimbursement decisions and strong levels of demand in the 2nd-line setting; additional decisions are expected in 2019. Sales of Tagrisso in Japan increased by 151% (153% at CER) to $123m, reflecting increasing use as a 1st-line treatment, following the 2018 regulatory approval in this setting where Tagrisso reached a very high penetration rate. Focused activities to maximise testing and utilisation rates in the 2nd-line setting also supported the performance.
 
Imfinzi
Imfinzi is approved in c.45 countries, including the US, in Europe and Japan for the treatment of patients with unresectable, Stage III NSCLC whose disease has not progressed following platinum-based CRT. It is also approved for the 2nd-line treatment of patients with locally-advanced or metastatic urothelial carcinoma (bladder cancer) in eight countries, including the US.
 
Global Product Sales of Imfinzi increased by 376% (381% at CER) to $295m, of which $231m were in the US, almost entirely for the treatment of unresectable, Stage III NSCLC. Sales of $34m in Japan reflected strong demand, supported by higher CRT and treatment rates. Sales in Europe of $23m followed recent regulatory approvals and launches; additional approvals are expected in due course.
 
Iressa
Product Sales of $134m; a growth of 2% (7% at CER).
 
Emerging Markets sales increased by 21% (28% at CER) to $86m; Iressa entered the NRDL in China in 2017 and was included in the China '4+7' pilot tender scheme in 2018. Given the growing use of Tagrisso, sales of Iressa declined by 50% to $4m in the US and by 13% (7% at CER) to $26m in Europe. Japan sales amounted to $16m, reflecting a decline of 20%.
Oncology: Lynparza
 
By the end of the quarter, Lynparza was approved in over 60 countries for the treatment of ovarian cancer. Launches in the treatment of breast cancer took place in the US and Japan in 2018 and regulatory approval was received in the EU in April 2019. Lynparza has now been approved in nearly 40 countries for the treatment of breast cancer.
 
Product Sales of Lynparza amounted to $237m, an increase of 99% (105% at CER). The strong performance was geographically spread, with launches continuing in Emerging Markets and the Established Rest of World region (RoW). Ongoing MSD[22] co-promotion efforts also contributed to sales.
 
US sales increased by 80% to $119m, driven by the launch in the 1st-line BRCAm ovarian cancer indication at the end of 2018 and increased demand that reflected continued growth in the treatment with Lynparza of patients suffering from ovarian or breast cancer. Lynparza remained the leading US medicine in the poly ADP ribose polymerase (PARP)-inhibitor class, as measured by total prescription volumes and in both ovarian and breast cancer.
 
Sales in Europe increased by 55% (62% at CER) to $65m, driven by increasing levels of reimbursement and BRCA-testing rates; sales also benefitted from clinical-trial supply. The Company recently rolled out a number of launches in a broad, 2nd-line, maintenance ovarian-cancer indication, regardless of BRCA status. In 2018, the Company announced that the European Medicines Agency (EMA) had approved the use of Lynparza tablets (300mg twice daily) as a treatment for the same patient population.
 
Following the initial launch in April 2018, Japan sales of Lynparza, as a treatment for 2nd-line maintenance ovarian cancer andBRCAm breast cancer, amounted to $22m. Emerging Markets sales of $26m reflected the regulatory approval of Lynparza as a 2nd-line maintenance treatment of patients with ovarian cancer by the China National Medical Products Administration (NMPA), resulting in the subsequent launch of Lynparza in China, the first PARP inhibitor to be approved in the country.
 
Oncology: haematology and other Oncology medicines
 
Calquence
Product Sales of $29m; an increase of 263%.
 
Calquence was approved and launched in the US in October 2017. The medicine delivered a promising performance in the quarter, with c.40% of new patients now treated in the 2nd-line setting with Calquence in the approved indication of mantle cell lymphoma (MCL). At the end of 2018, the first regulatory approvals outside the US for the treatment of patients with MCL were granted in Brazil and the UAE.
 
Legacy: Faslodex
Product Sales of $254m; a stable performance (4% growth at CER).
 
Emerging Markets sales of Faslodex increased by 15% (28% at CER) to $45m. US sales declined by 6% to $126m; a generic Faslodex medicine did not launch in the quarter. Europe sales declined by 8% (2% at CER) to $54m, reflecting the continued impact of generic entrants in certain countries. In Japan, sales increased by 33% to $28m.
 
Legacy: Zoladex
Product Sales of $194m; an increase of 5% (13% at CER).
 
Emerging Markets sales of Zoladex increased by 13% (23% at CER) to $114m. Sales in Europe increased by 3% (9% at CER) to $35m. In the Established RoW region, sales declined by 10% (8% at CER) to $43m, driven by the effects of increased competition.
 
BioPharma - CVRM
 
Total CVRM sales, which include Crestor and other legacy medicines, increased by 4% (9% at CER) to $1,714m. Total CVRM sales represented 31% of total Product Sales. New CVRM sales increased by 15% (19% at CER) to $1,033m, reflecting strong performances from Farxiga and Brilinta.
 
CVRM: Diabetes
 
Farxiga
Product Sales of $349m; an increase of 17% (23% at CER).
 
Emerging Markets sales of Forxiga increased by 38% (51% at CER) to $95m, reflecting ongoing launches, improved levels of patient access and strong performances in key markets, such as Brazil. US sales increased by 3% to $131m, impacted by changes in formulary access for competitor medicines. Sales in Europe increased by 20% (30% at CER) to $89m. In Japan, sales to the collaborator, Ono Pharmaceutical Co., Ltd, which records in-market sales in Japan, increased by 55% to $17m.
 
Onglyza 
Product Sales of $153m, an increase of 19% (23% at CER) was partly driven by favourable prior year gross-to-net adjustments in the US, where sales increased by 59% to $78m.
 
Sales in Emerging Markets increased by 8% (23% at CER) to $43m, driven by the performance in China. Sales in Europe declined by 17% to $19m, highlighting the broader trend of a shift away from the dipeptidyl peptidase-4 inhibitor class. Given the significant future potential of Farxiga, the Company continues to prioritise commercial support over Onglyza.
 
Bydureon
Product Sales of $142m; an increase of 2% (4% at CER).
 
Sales were adversely impacted by ongoing supply constraints related to Bydureon BCise; these are anticipated to ease later in the year. Sales in the US increased by 5% to $117m. Favourable sales volumes were driven by continued growth in the glucagon-like peptide-1 class, at the expense of insulin, for more-advanced T2D patients. Bydureon sales in Europe declined by 22% (17% at CER) to $18m.
 
Other CVRM medicines
 
Brilinta
Product Sales of $348m; an increase of 19% (24% at CER).
 
Emerging Markets sales of Brilinta increased by 28% (38% at CER) to $97m, bolstered by the entry onto the NRDL in China in 2017. US sales of Brilinta, at $153m, represented an increase of 33%. The performance was driven primarily by increasing levels of demand in both hospital and retail settings, as well as a lengthening in the average-weighted duration of treatment, reflecting the growing impact of 90-day prescriptions. Sales of Brilique in Europe declined by 3% in the quarter (growth of 3% at CER) to $83m; volume demand grew in the quarter.
 
Lokelma
Lokelma was approved in the US and EU in 2018 for the treatment of hyperkalaemia, a serious condition characterised by elevated potassium levels in the blood associated with CV, renal and metabolic diseases. Lokelma's launch programme began in the Nordics in 2018 and further launches are anticipated to commence in major markets in due course, including the US in H2 2019.
 
Legacy: Crestor
Product Sales of $335m; a decline of 14% (9% at CER).
 
Sales in China declined by 6% (stable at CER) to $137m, partly a result of Crestor being unsuccessful in the '4+7' pilot tender scheme. US sales declined by 43% to $26m, underlining the ongoing impact of generic Crestor medicines. In Europe, sales declined by 40% (37% at CER) to $39m, reflecting a similar impact that began in 2017. In Japan, where AstraZeneca collaborates with Shionogi Co. Ltd, sales increased by 23% to $32m. This followed a period of decline resulting from the entry of multiple generic Crestor medicines in the market at the end of 2017.
 
BioPharma - Respiratory
 
Product Sales of $1,283m; an increase of 9% (14% at CER). Respiratory Product Sales represented 23% of total Product Sales.
 
Symbicort
Product Sales of $585m; a decline of 8% (3% at CER).
 
Symbicort continued to lead the global market by volume within the inhaled corticosteroid (ICS) / long-acting beta agonist (LABA) class. Emerging Markets sales of Symbicort increased by 4% (13% at CER) to $133m. In contrast, US sales declined by 4% to $176m, reflecting continued pricing pressure and the impact of managed-market rebates. This was partially offset by positive volumes from government buying and a favourable gross-to-net adjustment.
 
In Europe, sales declined by 14% (8% at CER) to $182m; the performance partly reflected the level of price competition from other branded and Symbicort-analogue medicines, plus government pricing interventions. Symbicort, however, continued to retain its class-leadership position and stabilised its volume market share in the class, with volume growth achieved in a number of markets.
 
In Japan, sales declined by 20% (18% at CER) to $40m following destocking by Astellas Pharma Co. Ltd (Astellas). In January 2019, AstraZeneca and Astellas announced that the sale and distribution of Symbicort, conducted by Astellas in Japan, was to be transferred back to AstraZeneca and that the co-promotion conducted by Astellas and AstraZeneca will be terminated on 30 July 2019. The Company will solely distribute and promote the medicine in Japan from 31 July 2019. In addition, during the period, the first generic Symbicort medicine received regulatory approval and multiple generic Symbicort medicines are anticipated to enter the Japanese market in due course.
 
Pulmicort 
Product Sales of $383m; an increase of 11% (16% at CER).
 
Emerging Markets, where sales increased by 16% (23% at CER) to $314m, represented 82% of global sales of Pulmicort. China, making up the overwhelming majority of Pulmicort sales in Emerging Markets, delivered a particularly strong double-digit performance, supported by higher demand and strong underlying volume growth, underpinned by the impact of AstraZeneca's investment in over 17,000 nebulisation centres.
 
Sales in the US and Europe declined by 17% to $24m and by 7% (4% at CER) to $25m, respectively, a consequence of the medicine's legacy status.
 
Fasenra
Product Sales of $129m, an increase of 514% (524% at CER).
 
In November 2017, the Company was granted regulatory approval for Fasenra in the US as a treatment of patients with severe, eosinophilic asthma; the approval was followed immediately by the launch of the medicine and US sales amounted to $93m in the quarter. New-to-brand prescription data showed that Fasenra was the preferred novel-biologic medicine for the treatment of severe asthma during the period, despite being the third medicine to enter the market.
 
In Europe and Japan, AstraZeneca was granted regulatory approval in January 2018 on a similar basis to that in the US. In Europe, sales totalled $18m in the quarter, predominantly reflecting strong sales in Germany. Sales in Japan amounted to $16m, following its launch in the second quarter of 2018. In addition, Fasenra led the novel asthma biologic-medicine class by new patient share in Germany and Japan during the period.
 
Daliresp/Daxas
Product Sales of $48m; an increase of 26% (29% at CER).
 
US sales, representing 85% of the global total, increased by 41% to $41m, driven by favourable affordability-programme changes and inventory movements. It is the only oral, selective, long-acting inhibitor of phosphodiesterase-4, an inflammatory enzyme associated with COPD.
 
Duaklir
Product Sales of $20m; a decline of 29% (25% at CER).
 
Duaklir, the Company's first inhaled dual bronchodilator medicine, is now available for patients in over 25 countries, with almost all sales emanating from Europe. The global LAMA/LABA class continued to grow in the period, albeit below expectations.
 
Bevespi 
Product Sales increased by 100% to $10m.
 
Bevespi saw prescriptions in the period track in line with other LAMA/LABA launches; the class in the US, however, continued to grow more slowly than anticipated previously. Bevespi was the first medicine launched using the Company's proprietaryAerosphere Delivery Technology.
 
Other medicines (outside the main therapy areas)
 
Product Sales of $576m in the quarter; a decline of 38% (36% at CER), partly reflecting the aforementioned divestment of US rights to Synagis, as well as rights to Seroquel in a number of markets. Other Product Sales represented 11% of total Product Sales, down from 19% in Q1 2018.
 
Nexium 
Product Sales of $363m; a decline of 19% (16% at CER).
 
Emerging Markets sales increased by 4% (12% at CER) to $190m. In Europe, sales declined by 74% to $16m. In October 2018, AstraZeneca announced that it had agreed to divest the prescription medicine rights to Nexium in Europe to Grünenthal GmbH. Sales in the US declined by 34% to $66m and in Japan, where AstraZeneca collaborates with Daiichi Sankyo, sales declined by 16% (15% at CER) to $75m.
 
 
Regional Product Sales
 
 
Table 6: Regional Product Sales
 
 
 
Q1 2019
 
$m
 
% of total
 
% change
Actual
 
CER
 
Emerging Markets[23]
2,004
37
14
22
 
China
1,242
23
21
28
 
Ex-China
762
14
3
13
 
 
 
 
 
US
1,786
33
20
20
 
 
 
 
 
Europe
982
18
(12)
(6)
 
 
 
 
 
Established RoW
693
13
13
16
 
Japan
501
9
26
27
 
Canada
114
2
(10)
(5)
 
Other Established RoW
78
1
(10)
(2)
 
 
 
 
 
TOTAL
5,465
100
10
14
 
 
Table 7: Regional Product Sales, Emerging Markets
Product Sales of $2,004m in the quarter, an increase of 14% (22% at CER), continuing the strong double-digit growth seen in prior periods. New medicines represented 18% of Emerging Markets sales (Q1 2018: 13%). Ex-China Emerging Market sales increased by 3% (13% at CER) to $762m; every Emerging Market sub-region delivered strong growth at CER. Notable performances included sales of $281m in (non-China) Asia-Pacific (+5%, +9% at CER) and $49m in Russia (+44%, +68% at CER).
 
 
 
Q1 2019
 
$m
 
% of total
 
% change
Actual
 
CER
 
Oncology
490
24
35
46
 
BioPharma - CVRM
747
37
7
16
 
BioPharma - Respiratory
518
26
18
26
 
Other medicines
249
12
(6)
(6)
 
 
 
 
 
Total
2,004
100
14
22
 
China sales, comprising 62% of total Emerging Markets sales, increased by 21% (28% at CER) to $1,242m. New medicines delivered particularly encouraging sales growth, supported by strong performances from PulmicortSelokenCrestorNexiumand Symbicort. New medicines represented 13% of China sales (Q1 2018: 9%).
 
Table 8: Regional Product Sales, US
Product Sales of $1,786m; an increase of 20%. New medicines represented 57% of US Product Sales, up from 37% in Q1 2018. The performance reflected, in particular, the success of the new Oncology medicines, including TagrissoImfinzi and Lynparza, plus the strong performance of Fasenra in Respiratory.
 
 
 
Q1 2019
 
$m
 
% of total
 
% change
Actual
 
Oncology
770
43
81
 
 
BioPharma - CVRM
558
31
12
 
BioPharma - Respiratory
346
19
28
 
Other medicines
112
6
(62)
 
 
 
 
Total
1,786
100
20
 
 
Table 9: Regional Product Sales, Europe
Product Sales of $982m; a decline of 12% (6% at CER). This partly reflected adverse continued pricing pressures and the impact of the aforementioned divestment of the prescription medicine rights to Nexium. Declining sales of Crestor were a result of the 2017 market entry of Crestor generic medicines, while sales of Synagis declined by 69% to $28m due to buying patterns in 2019. Excluding these impacts, the sales performance was encouraging, with new medicines delivering a promising performance in the quarter, representing 38% of Europe Product Sales, up from 24% in Q1 2018.
 
 
 
Q1 2019
 
$m
 
% of total
 
% change
Actual
 
CER
 
Oncology
314
32
26
34
 
BioPharma - CVRM
283
29
(13)
(8)
 
BioPharma - Respiratory
285
29
(13)
(7)
 
Other medicines
100
10
(55)
(49)
 
 
 
 
 
Total
982
100
(12)
(6)
 
 
Table 10: Regional Product Sales, Established RoW
Product Sales of $693m; an increase of 13% (16% at CER). New medicines represented 38% of Established RoW sales, up from 16% in Q1 2018. The performance during the quarter reflected, in particular, the successes of TagrissoImfinzi and Forxiga.
 
 
 
Q1 2019
 
$m
 
% of total
 
% change
Actual
 
CER
 
Oncology
318
46
66
67
 
BioPharma - CVRM
126
18
2
5
 
BioPharma - Respiratory
134
19
(8)
(5)
 
Other medicines
115
17
(23)
(18)
 
 
 
 
 
Total
693
100
13
16
 
Japan sales, comprising 72% of total Established RoW, increased by 26% (27% at CER) to $501m. Despite the entry of generic Crestor medicines in 2018, Crestor sales in Japan increased by 23% to $32m and represented 6% of Japan sales. New medicines represented 42% of Japan sales, up from 15% in FY 2018, particularly reflecting the strong performance of Tagrisso as a 1st-line treatment for patients with EGFRm NSCLC, following regulatory approval in this setting in the third quarter 2018.
 
 
Financial performance
 
 
Table 11: Q1 2019 Reported Profit and Loss
 
 
           
Reported
 
Q1 2019
 
Q1 2018
 
% change
 
$m
 
$m
 
Actual
 
CER                         
 
Product Sales
5,465
4,985
10
14
Collaboration Revenue
26
193
(87)
(86)
Total Revenue
5,491
5,178
6
11
 
 
 
 
 
Cost of Sales
(1,129)
(1,134)
-
-
 
 
 
 
 
Gross Profit
4,362
4,044
8
13
Gross Margin[24]
79.3%
77.3%
+2
+3
 
 
 
 
 
Distribution Expense
(78)
(81)
(4)
3
% Total Revenue
1.4%
1.6%
-
-
R&D Expense
(1,266)
(1,279)
(1)
3
% Total Revenue
23.1%
24.7%
+2
+2
SG&A Expense
(2,514)
(2,457)
2
7
% Total Revenue
45.8%
47.5%
+2
+2
Other Operating Income & Expense
593
469
26
27
% Total Revenue
10.8%
9.1%
+2
+1
 
 
 
 
 
Operating Profit
1,097
696
58
68
Operating Profit Margin
20.0%
13.4%
+7
+7
Net Finance Expense
(312)
(308)
1
4
Joint Ventures and Associates
(27)
(14)
90
90
Profit Before Tax
758
374
n/m
n/m
Taxation
(195)
(58)
 
 
Tax Rate
26%
16%
 
 
Profit After Tax
563
316
78
95
 
 
 
 
 
EPS
$0.47
$0.27
75
90
 
 
 
 
 
 
 
Table 12: Reconciliation of Reported Profit Before Tax to EBITDA[25]
 
 
 
Q1 2019 $m
 
Q1 2018 $m
% change
Actual
 
CER
 
Reported Profit Before Tax
758
374
n/m
n/m
Net Finance Expense
312
308
1
4
Joint Ventures and Associates
27
14
90
90
Depreciation, Amortisation and Impairment
676
709
(5)
-
 
 
 
 
 
EBITDA
1,773
1,405
26
33
 
Table 13: Q1 2019 Reconciliation of Reported to Core financial measures
 
 
 
Reported
 
Restructuring
 
Intangible Asset
Amortisation & Impairments
Diabetes Alliance
 
Other[26]
 
Core[27]
 
Core
% change
 
$m
 
$m
 
$m
 
$m
 
$m
 
$m
 
Actual
 
CER
 
Gross Profit
4,362
38
25
-
-
4,425
7
13
Gross Margin
79.3%
-
-
-
-
80.5%
2
2
 
 
 
 
 
 
 
 
 
Distribution Expense
(78)
-
-
-
-
(78)
(4)
3
R&D Expense
(1,266)
34
7
-
-
(1,225)
(1)
3
SG&A Expense
(2,514)
31
337
105
(25)
(2,066)
2
6
Other Operating Income & Expense
593
-
1
-
-
594
n/m
n/m
 
 
 
 
 
 
 
 
 
Operating Profit
1,097
103
370
105
(25)
1,650
84
96
Operating Profit Margin
20.0%
-
-
-
-
30.0%
13
13
 
 
 
 
 
 
 
 
 
Net Finance Expense
(312)
-
-
72
50
(190)
12
10
Taxation
(195)
(22)
(76)
(36)
(1)
(330)
n/m
n/m
 
 
 
 
 
 
 
 
 
EPS
$0.47
$0.06
$0.23
$0.11
$0.02
$0.89
85
100
 
Profit and loss commentary
 
Gross Profit
Reported Gross Profit increased by 8% in the quarter (13% at CER) to $4,362m; Core Gross Profit increased by 7% (13% at CER) to $4,425m, reflecting the growth in Product Sales. The calculation of Reported and Core Gross Margin excludes the impact of Collaboration Revenue and any associated costs, thereby reflecting the underlying performance of Product Sales. The Reported Gross Margin increased by two percentage points (three at CER) to 79.3%; the Core Gross Margin increased by two percentage points to 80.5%. The increases primarily reflected the phasing of the mix of sales.
 
Operating Expenses
Reported R&D Expenses declined by 1% (an increase of 3% at CER) to $1,266m. Core R&D Expenses declined by 1% (an increase of 3% at CER) to $1,225m and represented 22% of Total Revenue (Q1 2018: 24%). Reported SG&A Expenses increased by 2% (7% at CER) to $2,514m, primarily reflecting ongoing investment focused on commercial and medical-affairs support for launches and extensions of the Company's new medicines. These included LynparzaTagrissoImfinziCalquenceand Fasenra; additional investment was also added to support sales growth in China. Core SG&A Expenses increased by 2% (6% at CER) to $2,066m, reflecting the aforementioned investments and represented 38% of Total Revenue. (Q1 2018: 39%).
 
Other Operating Income and Expense
Where AstraZeneca does not retain a significant ongoing interest in medicines or potential new medicines, income from divestments is reported within Other Operating Income and Expense in the Company's financial statements. Reported Other Operating Income and Expense increased by 26% (27% at CER) to $593m and included $515m that reflected an agreement to sell US rights to Synagis to Swedish Orphan Biovitrum AB (publ).
As part of the total consideration received, $150m related to the rights to participate in the future cashflows from the US profits or losses for MEDI8897. This was recognised as a financial liability and is presented in Other Payables within Non-current Liabilities. The associated cash flow is presented within Investing Activities. Core Other Operating Income and Expense increased by 379% (383% at CER) to $594m.
 
Operating Profit
Reported Operating Profit increased by 58% in the year (68% at CER) to $1,097m, partly driven by the increases in Product Sales, the Reported Gross Margin and Other Operating Income and Expense. The Reported Operating Margin increased by seven percentage points to 20.0%. Core Operating Profit increased by 84% (96% at CER) to $1,650m; the Core Operating Margin increased by 13 percentage points to 30.0%.
 
Net Finance Expense
Reported Net Finance Expense increased by 1% (4% at CER) to $312m, partly a result of higher Net Debt. Excluding the discount-unwind on acquisition-related liabilities, Core Net Finance Expense increased by 12% (10% at CER) to $190m.
 
Profit Before Tax
Reported Profit Before Tax increased by 103% (122% at CER) to $758m, reflecting the growth in Product Sales and the Reported Gross Margin. Core Profit Before Tax increased by 102% (116% at CER) to $1,433m, also a result of the increase in Core Other Operating Income and Expense.
 
Taxation
The Reported Tax Rate was 26% for the quarter, while the Core Tax Rate was 23%. These tax rates were higher than the UK Corporation Tax Rate of 19% due to the impacts of the geographical mix of profit, as well as divestment transactions. The net cash tax paid for the quarter was $334m (Q1 2018: $117m), representing 44% of Reported Profit Before Tax. Increased net cash tax primarily reflected the phasing of payments.
 
The Reported and Core Tax Rates in Q1 2018 were 16% and 18%, respectively; the net cash tax paid represented 31% of Reported Profit Before Tax.
 
EPS
Reported EPS of $0.47 represented an increase of 75% (90% at CER). Core EPS increased by 85% (100% at CER) to $0.89.
 
Table 14: Cash Flow
 
 
 
Q1 2019
 
Q1 2018
 
Change
 
$m
 
$m
 
$m
 
Reported Operating Profit
1,097
696
401
Depreciation, Amortisation and Impairment
676
709
(33)
 
 
 
 
Increase in Working Capital and Short-Term Provisions
(710)
(993)
283
Gains on Disposal of Intangible Assets
(512)
(65)
(447)
Non-Cash and Other Movements
(396)
(242)
(154)
Interest Paid
(208)
(128)
(80)
Tax Paid
(334)
(117)
(217)
 
 
 
 
Net Cash Outflow From Operating Activities
(387)
(140)
(247)
 
 
 
 
Net Cash (Outflow)/Inflow Before Financing Activities
(59)
133
(192)
 
 
 
 
Net Cash Outflow From Financing Activities
(698)
(663)
(35)
A net cash outflow from operating activities of $387m compared to an outflow of $140m in Q1 2018, partly a result of increased net tax payments. The Gains on Disposal of Intangible Assets increased to $512m (Q1 2018: $65m), reflecting the impact of the aforementioned divestment of US rights to Synagis.
 
Net cash outflows before financing activities of $59m compared with an inflow of $133m in Q1 2018. The difference partly reflected the impact of historic business-development transactions and subsequent payments reported within Payment of Contingent Consideration on Business Combinations, as well as within the Purchase of Intangible Assets. The latter included the impact of a final true-up net payment of $413m to MSD, based on actual sales of Nexium and Prilosec from 2014 to 2018;this was accrued over the same period. A payment from Pfizer, Inc. of $175m was received in the quarter, recorded within Disposal of Intangible Assets, as part of a prior agreement to sell the commercialisation and development rights to AstraZeneca's late-stage small molecule antibiotics business in most markets globally outside the US. Reflecting strong sales growth and a pre-defined increase in royalty rates, the cash payment of contingent consideration in respect of the Bristol-Myers Squibb share of the global Diabetes alliance, amounted to $110m in the quarter (Q1 2018: $62m).
 
Capital expenditure
Capital expenditure amounted to $174m in the quarter, compared to $213m in Q1 2018. This included the investment in the new global headquarters in Cambridge, UK. In November 2018, the Company successfully completed the transition to Mace Group as construction manager. Following a detailed review of the construction programme, in order to optimise operational performance on site and produce a predictable schedule to completion, overall full completion of the building is now expected in late 2021. AstraZeneca continues to target an initial occupation in 2020. The Company maintains its anticipation of a broadly stable level of capital expenditure in FY 2019.
 
Table 15: Debt and capital structure
 
 
 
At 31 March 2019
 
At 31 March 2018
 
$m
 
$m
 
Cash and Cash Equivalents
4,136
3,005
Other Investments
876
868
 
 
 
Cash and Investments
5,012
3,873
 
 
 
Overdrafts and Short-Term Borrowings
(2,044)
(2,776)
Leases[28]
(714)
-
Current Instalments of Loans
(1,500)
(1,394)
Loans Due After One Year
(17,320)
(15,684)
 
 
 
Interest-Bearing Loans and Borrowings
(Gross Debt)
(21,578)
(19,854)
 
 
 
Net Derivatives
295
565
Net Debt
(16,271)
(15,416)
 
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.
 
Foreign exchange
 
The Company's transactional currency exposures on working-capital balances, which typically extend for up to three months, are hedged where practicable using forward foreign-exchange contracts against the individual companies' reporting currency. In addition, the Company's external dividend payments, paid principally in pounds sterling and Swedish krona, are fully hedged from announcement to payment date. Foreign-exchange gains and losses on forward contracts for transactional hedging are taken to profit or loss.
 
Table 16: Currency sensitivities
The Company provides the following currency-sensitivity information:
 
 
 
Average ExchangeRates vs. USD
 
Annual Impact Of 5% Strengthening in Exchange Rate vs. USD ($m)[29]
Currency
 
Primary Relevance
 
FY 2018[30]
 
Q1 2019[31]
 
% change
 
Product Sales
 
Core Operating Profit
 
CNY
Product Sales
6.62
6.76
(2)
221
126
EUR
Product Sales
0.85
0.88
(4)
145
66
JPY
Product Sales
110.45
110.07
-
114
74
Other[32]
 
 
 
 
216
105
 
 
 
 
 
 
 
GBP
Operating Expenses
0.75
0.77
(3)
26
(72)
SEK
Operating Expenses
8.69
9.16
(5)
4
(73)
 
 
Corporate and business development

 
a) AstraZeneca and Daiichi Sankyo enter collaboration for novel HER2-targeting antibody-drug conjugate
In March 2019, AstraZeneca announced that it had entered into a global development and commercialisation collaboration agreement with Daiichi Sankyo for trastuzumab deruxtecan (DS-8201), a proprietary antibody-drug conjugate (ADC) and potential new targeted medicine for cancer treatment.
 
The companies will develop and commercialise trastuzumab deruxtecan jointly worldwide, except in Japan where Daiichi Sankyo will maintain exclusive rights. Daiichi Sankyo will be solely responsible for manufacturing and supply. Under the terms of the agreement, AstraZeneca will pay Daiichi Sankyo an upfront payment of $1.35bn, half of which was due upon execution (and settled in Q2 2019), with the remainder payable 12 months later. Contingent payments of up to $5.55bn comprise $3.8bn for potential successful achievement of future regulatory and other milestones, as well as $1.75bn for sales-related milestones. Overall, the transaction will be accounted for as an acquisition of an intangible asset, recognised initially at the present value of non-contingent consideration, with future milestones capitalised into the intangible asset as they are recognised. AstraZeneca and Daiichi Sankyo will share equally development and commercialisation costs as well as profits from trastuzumab deruxtecan worldwide, except for Japan, where Daiichi Sankyo will incur all costs and AstraZeneca will receive a royalty on sales.
 
Daiichi Sankyo will record sales in the US, certain countries in Europe and certain other markets where Daiichi Sankyo has affiliates. Gross profits and royalties shared with AstraZeneca will be accounted for as Collaboration Revenue by the Company. AstraZeneca is expected to record Product Sales in all other markets worldwide for which profits shared with Daiichi Sankyo will be accounted for within Cost of Sales.
 
There were no closing conditions to the agreement and the transaction completed in March 2019. The transaction and funding arrangements (see Note 6) did not impact the Company's financial guidance for 2019. The upfront payment and near-term milestones were and will be funded from the proceeds of an equity placement (see Note 6) of approximately $3.5bn before expenses, of which more than half was and will be used to fund this transaction and the ongoing collaboration.
 
b) AstraZeneca enters new development and commercialisation agreement for Fasenra
In March 2019, AstraZeneca and Kyowa Hakko Kirin Co., Ltd. (KHK) announced a new development and commercialisation agreement for Fasenra in all indications beyond asthma and COPD in Asia. The Company previously had rights to Fasenra in countries and regions for COPD and asthma indications. Under the new agreement, AstraZeneca will now have global rights to Fasenra for all current and future indications.
 
Under the terms of the agreement, AstraZeneca made an upfront payment and, in addition, KHK will receive subsequent payments for regulatory and commercial milestones. Other financial terms are the same as prior agreements between the companies. AstraZeneca is now responsible for the development, sales and marketing of Fasenra for all indications globally.
 
c) Termination of lanabecestat collaboration with Lilly
In March 2019, alongside collaboration partner Eli Lilly and Company (Lilly), AstraZeneca presented the results at the Alzheimer's and Parkinson's Disease Congress of the AMARANTH and DAYBREAK-ALZ trials for lanabecestat, an oral beta secretase-cleaving enzyme inhibitor. The results showed no significant disease-slowing for those patients treated with lanabecestat and supported the decision to discontinue the AMARANTH, AMARANTH Extension and DAYBREAK-ALZ trials. The lanabecestat collaboration with Lilly will be terminated.
 
 
Sustainability
 
 
AstraZeneca's sustainability ambition has three priority areas[33], aligned with the Company's purpose and business strategy:
 
   -  Access to healthcare
   -  Environmental protection
   -  Ethics and transparency
 
Recent developments and progress against the priorities are reported below:
 
a) Access to healthcare
During the period, the Company continued its investment in healthcare systems by expanding its Healthy Heart Africa programme into Ghana. In March 2019, AstraZeneca signed a Memorandum of Understanding with Ghana Health Services to bring the programme to the country, following a key stakeholder meeting to expedite the development and rollout of Ghana Hypertension Guidelines.
 
In March 2019, The Economist Intelligence Unit (EIU) published new research, supported by AstraZeneca as part of the Young Health Programme (YHP), that highlighted the need for an increased focus on adolescents as a way to address the growing global burden of non-communicable disease. The EIU research, Addressing Non-Communicable Diseases in Adolescence, assessed how ten representative countries of different income levels are addressing the challenges associated with non-communicable diseases (NCDs) among adolescents. It was based on an NCD scorecard evaluating national efforts in policy, awareness and implementation, with a focus on four risk factors / health areas: healthy diets, nutrition and physical exercise; alcohol and tobacco; sexual and reproductive health; and mental health. The aim of the research was to support policy discussion around the topic of NCD prevention, particularly as it relates to young people.
 
In March 2019, the Company launched its YHP in Mexico in partnership with Project HOPE, civil-society organisation Yo Quiero Yo Puedo and the National Cancer Institute. The aim is to transform the lives of young people in four districts of Mexico City by helping young people to change their behaviours, especially the use of tobacco, excessive consumption of alcohol, unhealthy diet and lack of physical activity. The programme will also address other barriers to healthy living, such as pollution and will promote education on sexual and reproductive health, gender equality and mental-health issues.
 
b) Environmental protection
During the period, six research papers co-authored by AstraZeneca were published on Pharmaceuticals in the Environment, a notable example being an article published on environmental exposure and risk predictions resulting from patient use of medicines in China.
 
In the first quarter of 2019, AstraZeneca in Gothenburg, Sweden launched two new environmental initiatives. The Tork PaperCircle programme, in partnership with Sodexo and the city of Mölndal, recycles all paper hand towels used in toilets on site, giving all employees a visible and tactile way to participate in sustainability efforts, as well as helping protect the environment and reduce the business's carbon footprint. The site cafeteria also launched a new initiative measuring food carbon footprint, with all dishes labelled based on their climate impact. By choosing dishes with low impact, colleagues can contribute to reducing the carbon footprint. The initiative is led by Sodexo, in cooperation with Klimato. The results of the food's climate impact will be reported monthly on TV screens across the site.
 
In the US, the Gaithersburg, MD and Wilmington, DE sites installed campus-wide composting facilities and the donation of unused cafeteria food to a local food bank respectively, to support efforts in waste management and the reduction of the Company's environmental footprint.
 
c) Ethics and transparency
During the period, the Company was recognised in a new report by the Workforce Disclosure Initiative (WDI), which aims to drive transparency from businesses on how they manage their workforce. 90 global companies disclosed to the 2018 WDI survey. AstraZeneca received a score of 71% vs. a sector average of 57% and a UK average of 58% for transparency around workforce practices including pay, conditions and wellbeing.
 
In the UK Gender Pay Report 2018, the Company provided gender-pay information for AstraZeneca in the UK and outlined plans for supporting women, as well as continuing to improve the diversity of its employee base. AstraZeneca's 2018 gender-pay gap data compared favourably with the national average in the UK - 15% vs. 18% national average. Globally, at the close of 2018, 45% of roles in the Company were held by women and the Board of Directors comprised 42% women.
 
In respect of transparency on bioethical topics such as animals in science, human biological samples and clinical trials, a newBioethics Global Standard was published on the company's website. The updated standard reflected the latest issues in the field as determined by the AstraZeneca Bioethics Advisory Group, a group of subject-matter experts and corporate representatives, sponsored by the Company's Chief Medical Officer.
 
During the period, new anti-bullying and anti sexual-harassment standards were also published and communicated to global colleagues. The new standards set out the Company's expectations for behaviour to ensure all colleagues feel respected, supported and safe at work from any form of bullying and harassment, be it mental, physical or sexual.
 
Other developments
During the period, the Company published its fourth annual Sustainability Report, describing progress and challenges in 2018. The content of the report was based on those sustainability issues deemed material through comprehensive stakeholder engagement and analysis; it included three years of data, where available.
 
 
 
For more details on AstraZeneca's sustainability ambition, approach and targets, please refer to the latest Sustainability Report 2018 and Sustainability Data Summary 2018, available at astrazeneca.com/sustainability.
 
 
 
 
Research and development
 
 
A comprehensive data pack comprising AstraZeneca's pipeline of medicines in human trials can be found in the clinical-trials appendix, available on astrazeneca.com. Highlights of developments in the Company's late-stage pipeline since the prior results announcement are shown below:
 
Table 17: Update from the late-stage pipeline
 
 
Regulatory approvals
4
 
-     Lynparza - breast cancer (BRCAm): regulatory approval (EU)
-     Forxiga - T1D: regulatory approval (EU, JP)
-     Duaklir - COPD: regulatory approval (US) (by partner)
Regulatory submissions and/or acceptances
5
 
-     Lynparza - breast cancer (BRCAm): regulatory submission (CN)
-     Farxiga - T2D (CVOT): regulatory submission acceptance (US, EU)
-     PT010 - COPD: regulatory submission acceptance (US, EU)
Major Phase III data readouts or other major developments
4
 
-     Lynparza - pancreatic cancer (BRCAm): met primary endpoint
-     selumetinib - NF1: Breakthrough Therapy Designation (US)
-     Brilinta - CAD/T2D (CVOT): met primary endpoint
-     saracatinib - IPF: Orphan Drug Designation (US)
New molecular
entities and major lifecycle medicines in Phase III trials or under regulatory review
13
 
 
Oncology
-     Tagrisso - NSCLC[34]
-     Imfinzi - multiple cancers34
-     Lynparza - multiple cancers34
-     trastuzumab deruxtecan - breast and other cancers
-     Calquence - blood cancers
-     tremelimumab - multiple cancers
-     selumetinib - NF1[35]
-     savolitinib - NSCLC
CVRM
-     roxadustat - anaemia of CKD
Respiratory
-     PT010 - COPD34
-     PT027 - asthma
-     tezepelumab - severe asthma
Other medicines (outside main therapy areas)
-     anifrolumab - lupus
 
Total projects in clinical pipeline
 
139
 
 
 
Oncology
 
AstraZeneca has a deep-rooted heritage in Oncology and offers a new generation of medicines that have the potential to transform patients' lives and the Company's future. At least six Oncology medicines are expected to be launched between 2014 and 2020, of which TagrissoImfinziLynparzaCalquence and Lumoxiti are already benefitting patients. An extensive pipeline of small-molecule and biologic medicines is in development and the Company is committed to advancing Oncology medicines, primarily focused on the treatment of patients with lung, ovarian, breast and blood cancers.
 
At the 2019 American Association for Cancer Research (AACR) Annual Meeting in Atlanta, several abstracts were presented from the TATTON Phase Ib trial, testing the combination of Tagrisso with potential new medicines savolitinib or selumetinib in NSCLC patients who have progressed on prior EGFR tyrosine kinase inhibitor treatment. In addition, exploratory analyses of blood and tissue tumour mutational burden (TMB) from the Phase III MYSTIC trial were presented at the AACR meeting. These assessed TMB, specifically blood-based, as a potential biomarker of survival in 1st-line use of Imfinzi with or without tremelimumab vs. chemotherapy in metastatic NSCLC.
 
Oncology: lung cancer
 
a) Tagrisso
Tagrisso 40mg and 80mg once-daily oral tablets have now received approval in more over 65 countries, including in the US, Japan and in the EU, for the 1st-line treatment of patients with Stage IV EGFRm NSCLC. Multiple other similar reviews are underway, including in China, where a decision is anticipated during the second quarter of 2019, based on a priority review granted in December 2018. Regulatory approvals have been achieved in over 80 countries, including the US, in the EU, Japan and in China for the 2nd-line treatment of patients with EGFR T790M-mutated NSCLC.
 
Table 18: Key Tagrisso trials in lung cancer
 
 
Name
Phase
Population
Design
Timelines
Status
ADAURA
III
Adjuvant EGFRm NSCLC
Placebo orTagrisso
FPCD[36] Q4 2015LPCD Q1 2019
First data anticipated 2020+[37]
 
Recruitmentongoing
LAURA
III
Locally-advanced, unresectable EGFRm NSCLC
 
Placebo orTagrisso
FPCD Q3 2018
 
First data anticipated 2020+
Recruitmentongoing
SAVANNAH
II
EGFRm, MET+ locally advanced or metastatic NSCLC who have progressed on Tagrisso
 
Tagrisso + savolitinib
FPCD Q1 2019
First data anticipated 2020+
Recruitmentinitiating
 
b) Imfinzi
 
Table 19: Key Imfinzi trials in lung cancer
 
 
Name
Phase
Population
Design
Timelines
Status
AEGEAN
III
Neo-adjuvant (before surgery) NSCLC
SoC chemotherapy +/- Imfinzi,
followed by
surgery followed by placebo orImfinzi
 
FPCD Q1 2019
 
First data anticipated 2020
Recruitmentongoing
ADJUVANT BR.31[38]
III
Stage Ib-IIIa NSCLC
Placebo or
Imfinzi
FPCD Q1 2015
First data anticipated 2020+
 
Recruitmentongoing
PACIFIC
III
Unresectable, Stage III NSCLC
Concurrent CRT[39],
followed by
placebo or
Imfinzi
 
FPCD Q2 2014
 
LPCD Q2 2016
PFS[40] and OS[41]primary endpoints both met
PACIFIC-2
III
Unresectable, Stage III NSCLC
Concurrent CRT concurrent with
placebo or
Imfinzi, followed
by placebo or
Imfinzi
 
FPCD Q2 2018
 
First data anticipated 2020+
Recruitmentongoing
PACIFIC-4
III
Unresectable, Stage I-II NSCLC
Stereotactic
body radiation
therapy, followed
by placebo or
Imfinzi
 
FPCD Q1 2019
 
First data anticipated 2020+
Recruitmentongoing
PACIFIC-5
III
Unresectable, Stage III NSCLC
(Asia predominant)
 
Concurrent or sequential CRT,
followed by
placebo or
Imfinzi
 
FPCD Q1 2019
 
First data anticipated 2020+
Recruitmentongoing
ADRIATIC
III
Limited-disease stage small cell lung cancer (SCLC)
Concurrent CRT,
followed by
placebo or
Imfinzi or Imfinzi+ treme
 
FPCD Q4 2018
 
First data anticipated 2020+
Recruitmentongoing
PEARL
III
Stage IV, 1st-line NSCLC (Asia)
SoC chemotherapy or Imfinzi
FPCD Q1 2017LPCD Q1 2019
 
First data anticipated 2020
 
Recruitmentongoing
MYSTIC
III
Stage IV, 1st-line NSCLC
SoC chemotherapy or Imfinzi or
Imfinzi + treme
FPCD Q3 2015
 
LPCD Q3 2016
Recruitment completed
 
PFS and OS primary endpoints not met
 
NEPTUNE
III
Stage IV, 1st-line NSCLC
SoC chemotherapy or Imfinzi +
treme
 
FPCD Q4 2015
 
LPCD Q2 2017
 
First data anticipated H2 2019
 
Recruitment completed
POSEIDON
III
Stage IV, 1st-line NSCLC
SoC chemotherapy or SoC + Imfinzior SoC + Imfinzi+ treme
FPCD Q2 2017
 
LPCD Q3 2018
 
First data anticipated H2 2019
 
Recruitment completed
CASPIAN
III
Extensive-disease stage SCLC
SoC chemotherapy or SoC + Imfinzior SoC + Imfinzi+ treme
FPCD Q1 2017
 
LPCD Q2 2018
 
First data anticipated H2 2019
 
Recruitment completed
 
 
Imfinzi as a potential new medicine in other tumour types
 
The Company continues to advance multiple monotherapy trials of Imfinzi and combination trials of Imfinzi with tremelimumab and other potential new medicines in tumour types other than lung cancer.
 
Imfinzi has received regulatory approval for the 2nd-line treatment of patients with locally-advanced or metastatic urothelial carcinoma (bladder cancer) in the US, Canada, Brazil, Israel, India, Australia, Hong Kong and the UAE.
 
Table 20: Key Imfinzi trials in tumour types other than lung cancer
 
 
Name
Phase
Population
Design
Timelines
Status
Stage I, II & III (non-metastatic disease)
POTOMAC
III
Non-muscle invasive bladder cancer
SoC BCG or SoC BCG[42] + Imfinzi
FPCD Q3 2018
 
First data
anticipated 2020+
 
Recruitment ongoing
NIAGARA
III
Muscle-invasive bladder cancer
Neo-adjuvant cisplatin and gemcitabine SoC chemotherapy or SoC + Imfinzifollowed by adjuvant placebo orImfinzi
 
FPCD Q1 2019
 
First data
anticipated 2020+
 
Recruitment ongoing
EMERALD-1
III
Locoregional hepatocellular carcinoma (liver cancer)
Transarterial chemoembolisation (TACE) followed by placebo or TACE +Imfinzi followed byImfinzi +
bevacizumab or
TACE + Imfinzi
followed by Imfinzi
 
FPCD Q1 2019
First data
anticipated 2020+
Recruitment ongoing
EMERALD-2
III
Locoregional hepatocellular carcinoma at high risk of recurrence after surgery or radiofrequency ablation
 
Adjuvant Imfinzi orImfinzi + bevacizumab
-
Initiating
CALLA
III
Locally-advanced cervical cancer
CRT or CRT +Imfinzi followed by placebo or Imfinzi
FPCD Q1 2019
First data anticipated 2020+
 
Recruitment ongoing
Stage IV (metastatic disease)
DANUBE
III
Stage IV, 1st-line cisplatin chemotherapy- eligible/ineligible bladder cancer
SoC chemotherapy or Imfinzi or Imfinzi+ treme
FPCD Q4 2015
 
LPCD Q1 2017
 
First data
anticipated H2 2019
 
Recruitment completed
NILE
III
Stage IV, 1st-line cisplatin chemotherapy- eligible bladder cancer
SoC chemotherapy or SoC + Imfinzi or SoC + Imfinzi + treme
FPCD Q3 2018
First data
anticipated 2020+
 
Recruitmentongoing
KESTREL
III
Stage IV, 1st-line HNSCC
SoC or Imfinzi orImfinzi + treme
FPCD Q4 2015
 
LPCD Q1 2017
 
First data
anticipated H2 2019
 
Recruitment completed
EAGLE
III
Stage IV, 2nd-line HNSCC
SoC or Imfinzi orImfinzi + treme
FPCD Q4 2015
 
LPCD Q3 2017
Recruitment completed
OS primary endpoints not met
 
HIMALAYA
III
Stage IV, 1st-line unresectable hepatocellular carcinoma
Sorafenib or Imfinzior Imfinzi + treme
FPCD Q4 2017
First data
anticipated 2020+
 
Recruitment
ongoing
TOPAZ-1
III
Stage IV, 1st-line biliary-tract cancers
Gemcitabine and cisplatin SoC chemotherapy or SoC + Imfinzi
 
-
Initiating
 
Oncology: Lynparza (multiple cancers)
 
During the period, AstraZeneca and MSD announced positive results from the Phase III POLO trial in pancreatic cancer. The results demonstrated a statistically-significant and clinically-meaningful improvement in PFS with Lynparza vs. placebo; the safety and tolerability profile of Lynparza was consistent with previous trials. POLO was a randomised, double-blinded, placebo-controlled trial exploring the efficacy of Lynparza tablets as 1st-line maintenance monotherapy for patients with germline BRCAm (gBRCAm) metastatic adenocarcinoma of the pancreas (pancreatic cancer) whose disease has not progressed on platinum-based chemotherapy.
 
The Company also recently announced that the EMA had approved Lynparza as a monotherapy for the treatment of gBRCAm adult patients who have HER2-negative, locally-advanced or metastatic breast cancer. Under the aforementioned collaboration with MSD and following this new approval, AstraZeneca received $30m as Collaboration Revenue in Q2 2019. Also during the period, the Company acknowledged the regulatory submission acceptance in China of the supplemental New Drug Application (sNDA) by the NMPA, seeking approval for Lynparza monotherapy for gBRCAm, HER2-negative, locally-advanced or metastatic breast cancer.
 
Table 21: Key Lynparza trials
 
 
Name
Phase
Population
Design
Timelines
Status
PROfound
III
Metastatic castration-resistant prostate cancer, HRRm 2L+
SoC (abiraterone or enzalutamide) or Lynparza
FPCD Q2 2017
LPCD Q4 2018
Data anticipated H2 2019
 
Recruitment completed
PAOLA-1[43]
III
Stage IV, 1st-line
ovarian cancer
Bevacizumab maintenance or
bevacizumab +
Lynparzamaintenance
 
FPCD Q2 2015
 
LPCD Q2 2018
 
First data
anticipated H2 2019
 
Recruitment completed
GY004[44]
III
Recurrent platinum-sensitive ovarian cancer
SoC chemotherapy or cediranib or cediranib +Lynparza
 
FPCD Q1 2016
Recruitment ongoing
GY00544
II/III
Recurrent platinum-resistant/refractory ovarian cancer
SoC chemotherapy or cediranib or cediranib +Lynparza
FPCD Q2 2016 (Phase II)FPCD Q1 2019 (Phase III)
First data
anticipated 2020+
 
Recruitment ongoing (Phase III component)
DuO-O
III
Stage IV, 1st-line
ovarian cancer
Chemotherapy +
bevacizumab or
chemotherapy +
bevacizumab +
Imfinzi +/-
Lynparzamaintenance
 
FPCD Q1 2019
First data
anticipated 2020+
Recruitmentongoing
MEDIOLA
I/II
Advanced, 2nd-line
gBRCAm ovarian
cancer
 
Stage IV, 1st to 3rd-line
gBRCAm, HER2-
negative breast cancer
 
Stage IV, 2nd-line SCLC
Stage IV, 2nd-line
gastric cancer
 
Lynparza + Imfinzi
FPCD Q2 2016
 
LPCD Q1 2019(all except one cohort)
Recruitmentongoing in one expansion cohort
 
Initial data from lung, breast, prostate and ovarian-cancer cohorts presented in 2017 and 2018
LYNK-002
II
HRRm advanced solid tumours
 
Lynparza
-
Initiating
VIOLETTE
II
Stage IV, advanced, triple-negative breast cancer:
 
-HRRm[45](BRCA)
-HRRm (non-BRCA)
-Non-HRRm
 
Lynparza
 
Lynparza + ATR
(AZD6738)
 
Lynparza + WEE1
(AZD1775)
FPCD Q2 2018
 
First data
anticipated 2020+
 
Recruitmentongoing
PROpel
III
Stage IV, advanced, castration-resistant prostate cancer
 
Abiraterone or
abiraterone +
Lynparza
FPCD Q4 2018
 
First data
anticipated 2020+
 
Recruitment ongoing
BAYOU
II
Stage IV, 1st line cis-platinum chemotherapy-ineligible urothelial
bladder cancer
 
Imfinzi or
Imfinzi + Lynparza
FPCD Q1 2018First data
anticipated 2020
Recruitment ongoing
DuO-LORION
II
Stage IV, 1st-line
NSCLC
SoC chemotherapy +Imfinzi, followed by Imfinzi orImfinzi + Lynparza
maintenance
 
FPCD Q1 2019
Data anticipated 2020+
Recruitment ongoing
 
Table 22: Key trastuzumab deruxtecan trials
 
 
Name
Phase
Population
Design
Timelines
Status
DESTINY-Breast01
II
Stage IV, HER2-positive breast cancer post trastuzumab emtansine
 
Trastuzumab deruxtecan
FPCD Q3 2017Data anticipated H2 2019
Breakthrough Therapy Designation status awarded
DESTINY-Breast02
III
Stage IV, HER2-positive breast cancer post trastuzumab emtansine
 
SoC or trastuzumab deruxtecan
FPCD Q3 2018
Data anticipated 2020+
 
Recruitment ongoing
DESTINY-Breast03
III
Stage IV, HER2-positive breast cancer
Trastuzumab emtansine or trastuzumab deruxtecan
FPCD Q3 2018
 
Data anticipated 2020+
 
Recruitment ongoing
DESTINY-Breast04
III
Stage IV, HER2-low breast cancer
SoC or trastuzumab deruxtecan
FPCD Q4 2018
Data anticipated 2020+
 
Recruitment ongoing
DESTNY-Gastric01
II
Stage IV, HER2-positive gastric cancer
SoC or trastuzumab deruxtecan
FPCD Q4 2017
Data anticipated 2020
 
Recruitment ongoing
 
Table 23: Key Calquence trials in CLL
 
 
Name
Phase
Population
Design
Timelines
Status
ACE-CL-007
ELEVATE-TN
III
Previously-untreated
CLL
Chlorambucil + obinutuzumab
or obinutuzumab +Calquence
or Calquence
FPCD Q2 2015
 
Data anticipated H2 2019
 
Recruitment completed
ACE CL-311
III
Previously-untreated
CLL
Fludarabine, cyclophosphamide and rituximab orCalquence + venetoclax +/-
obinutuzumab
 
FPCD Q2 2019
 
Data anticipated 2020+
Recruitment ongoing
ACE-CL-309
III
Relapsed/refractory CLL
Bendamustine or idelalisib + rituximab orCalquence
FPCD Q3 2016
 
Data anticipated H2 2019
 
Recruitment completed
ACE-CL-006 ELEVATE-RR
III
Relapsed/refractory high risk CLL
Ibrutinib orCalquence
FPCD Q2 2015
 
Data anticipated 2020+
 
Recruitment ongoing
 
During the period, AstraZeneca received regulatory approval for Calquence in relapsed MCL in Qatar; approval was achieved in prior periods in the US, Brazil and the UAE.
 
Other Oncology medicines
 
Selumetinib (NF1) 
During the period, the Company announced that the US FDA had granted Breakthrough Therapy Designation status for the MEK 1/2 inhibitor and potential new medicine, selumetinib. The designation was for the treatment of paediatric patients aged three years and older with NF1 symptomatic and/or progressive, inoperable plexiform neurofibromas, a rare, incurable genetic condition.
 
CVRM
 
CVRM forms one of AstraZeneca's main therapy areas and a key growth driver for the Company. By following the science to understand more clearly the underlying links between the heart, kidneys and pancreas, AstraZeneca is investing in a portfolio of medicines to protect organs and improve outcomes by slowing disease progression, reducing risks and tackling co-morbidities. The Company's ambition is to modify or halt the natural course of CVRM diseases and potentially regenerate organs and restore function, by continuing to deliver transformative science that improves treatment practices and CV health for millions of patients.
 
a) Farxiga (diabetes)
At the American College of Cardiology's (ACC) 68th Annual Scientific Session in New Orleans, the Company presented positive results from a pre-specified sub-analysis of the Phase III DECLARE-TIMI 58 trial showing that Farxiga reduced the relative risk of major adverse cardiovascular events (MACE) by 16%, compared to placebo in patients with T2D who had a prior heart attack (myocardial infarction). In another pre-specified sub-analysis, Farxiga, compared to placebo reduced the relative risk of hospitalisation for heart failure (hHF) in patients with T2D regardless of their ejection fraction (EF) status, a measurement of the percentage of blood leaving the heart with each contraction.
 
These pre-specified sub-analyses of DECLARE-TIMI 58 added to the positive primary results of the trial presented in November 2018, which showed that Farxiga significantly reduced the risk of the composite of hHF or CV death compared to placebo, consistently across the trial's entire patient population. Additionally, there were fewer major adverse cardiovascular events observed with Farxiga in the broad patient population; this did not, however, reach statistical significance. During the period, the Company received regulatory acceptances for the DECLARE submissions in both the US and EU.
 
In March 2019, the Company announced that the EMA had approved Forxiga for use in T1D as an adjunct to insulin in patients with a body-mass index ≥ 27 kg/m2, when insulin alone does not provide adequate glycaemic control, despite optimal insulin therapy. In March 2019, the Company announced that the Japanese Ministry of Health, Labour and Welfare had approved Forxiga as an oral adjunct treatment to insulin for adults with T1D. Forxiga is currently under regulatory review in the US for use as an adjunct treatment to insulin in adults with T1D, with a decision anticipated in the second half of 2019.
 
b) Bydureon (diabetes)
During the period, the US FDA approved label updates for Bydureon and Bydureon BCise to reflect safety data from the EXSCEL (EXenatide Study of Cardiovascular Event Lowering) trial, which demonstrated that Bydureon did not increase the risk of MACE in patients with T2D and a broad range of CV risk.
 
c) Brilinta (myocardial infarction)
During the period, the Company announced that the Phase III THEMIS trial had met its primary endpoint and demonstrated that Brilinta, taken in conjunction with aspirin, showed a statistically-significant reduction in a composite of MACE, compared to aspirin alone. THEMIS was conducted in over 19,000 patients with CAD and T2D with no history of prior heart attack (myocardial infarction) or stroke. Preliminary safety results were consistent with the known profile of Brilinta. The Company intends to present a full evaluation of the THEMIS data at a forthcoming medical meeting.
 
At the aforementioned ACC meeting, the Company presented data from a secondary analysis of the Phase III TREAT trial, demonstrating that that STEMI patients, aged 75 years or less, who received Brilinta following fibrinolysis, had a similar ischemic risk compared to those receiving clopidogrel, as measured by the secondary efficacy endpoint which was a composite of CV death, MI or stroke after 12 months of treatment. Brilinta showed a similar efficacy in preventing CV events compared to clopidogrel, with a numerical reduction in events in the Brilinta arm; this was, however, not statistically significant. The trial was designed primarily to test for non-inferiority, compared to clopidogrel, for safety at 30 days and was not powered statistically to detect significance of any treatment effects. A secondary safety analysis of TREAT was consistent with the known safety profile of Brilinta.
 
Table 24: Key, large CVRM trials
Major CVRM outcomes trials are highlighted in the following table:
 
 
Medicine
Trial
Mechanism
Population
Primary endpoint(s)
Timeline
Farxiga
DECLARE
SGLT2[46]inhibitor
c.17,000[47]patients with type-2 diabetes
Superiority for MACE or superiority for the composite endpoint of CV death or hHF
 
Primary safety endpoint met
One of two primary efficacy endpoints met
Farxiga
DAPA-HF
SGLT2 inhibitor
c.4,500 patients with heart failure (HF) and reduced ejection fraction, with and without type-2 diabetes
 
Time to first occurrence of CV death or hHF or an urgent HF visit
FPCD Q1 2017
 
LPCD Q3 2018
Data anticipatedH2 2019
Farxiga
DELIVER
SGLT2 inhibitor
c.4,700 patients with HF and preserved ejection fraction, with and without type-2 diabetes
 
Time to first occurrence of CV death or worsening heart failure
FPCD Q3 2018
Data anticipated 2020+
Farxiga
DAPA-CKD
SGLT2 inhibitor
c.4,000 patients with CKD, with and without T2D
Time to first occurrence of ≥ 50% sustained decline in eGFR[48] or reaching ESRD[49] or CV death or renal death
 
FPCD Q1 2017LPCD Q1 2019Data anticipated 2020+
Brilinta
THEMIS
P2Y12 receptor antagonist
c.19,000 patients with T2D and CAD without a history of MI or stroke
Composite of CV death, non-fatal MI and non-fatal stroke
Primary endpoint metDetails to be presented at a forthcoming medical meeting
 
Brilinta
THALES
P2Y12 receptor antagonist
c.13,000 patients with acute ischaemic stroke or transient ischaemic attack
 
Prevention of the composite of subsequent stroke and death at 30 days
FPCD Q1 2018
 
Data anticipated 2020
Epanova
STRENGTH
Omega-3 carboxylic acids
c.13,000 patients with mixed dyslipidaemia/ hypertriglycerid-aemia
 
Time to first occurrence of CV death, non-fatal MI or non-fatal stroke
 
FPCD Q4 2014
 
LPCD Q2 2017
 
Data anticipated 2020
 
 
d) Lokelma (hyperkalaemia)
During the period, DIALIZE, a multi-centre, randomised, placebo-controlled, double-blinded Phase IIIb trial investigating the efficacy of Lokelma as a treatment for patients with CKD on haemodialysis with hyperkalaemia, met its primary endpoint. DIALIZE was the first ever randomised, placebo-controlled trial to evaluate a potassium binder in patients on haemodialysis and will potentially inform regulatory updates in major markets. Before DIALIZE, limited scientific research had been conducted on this patient population. The Company intends to present results from the trial at a forthcoming medical meeting.
 
During the period, patient enrolment in the Phase II PRIORITZE HF trial was temporarily suspended. The trial was designed to evaluate the benefits and risks of using Lokelma to initiate and intensify renin angiotensin aldosterone system inhibitor (RAASi) therapy in HF patients. The suspension followed the identification of larger than anticipated measurement discrepancies between potassium-concentration levels at point of care vs. those in central laboratories. The differences identified resulted in some patients receiving inappropriate management of RAASi medication. The trial is anticipated to resume, following approval of an amendment to the trial protocol to measure potassium-concentration levels in central laboratories. The safety-monitoring committee recommended the continuation of the trial as planned. AstraZeneca anticipates an update to clinicaltrials.gov in due course.
 
e) Crestor (CV disease)
During the period, the Company announced that the Phase III METEOR China trial met its primary endpoint, demonstrating thatCrestor slowed progression of carotid intima-media thickness (CIMT) in adult Chinese patients with subclinical atherosclerosis. The preliminary safety results were consistent with the known safety profile of Crestor, which add long-term (two years) safety evidence of Crestor in the adult Chinese population. METEOR China was a randomised, double-blinded, placebo-controlled, multi-centre, parallel group trial assessing the effects of Crestor 20mg daily treatment for 104 weeks on the change in CIMT in adult Chinese patients with subclinical atherosclerosis. In total, 543 patients were randomised from 25 sites in China.
 
Respiratory
 
AstraZeneca's Respiratory focus is aimed at transforming the treatment of patients with asthma and COPD through combined inhaled therapies and biologic medicines for the unmet medical needs of specific populations and an early pipeline focused on disease modification. The growing range of medicines includes a number of anticipated launches between 2017 and 2020; of these, Bevespi and Fasenra are already benefitting patients, with regulatory reviews for Symbicort as an anti-inflammatory reliever in mild asthma and PT010 in COPD underway. The capability in inhalation technology spans both pressurised metered-dose inhalers and dry-powder inhalers to serve patient needs, including the innovative Aerosphere Delivery Technology, a focus of AstraZeneca's future-platform development for respiratory-disease combination therapies.
 
a) Symbicort (asthma)
In February 2019, the Brazilian Health Regulatory Agency (ANVISA) granted an expanded indication for Symbicort as a reliever of mild asthma symptoms. In April, a similar approval was also granted by the Ministry of Health of the Russian Federation. These approvals were based on data from the SYGMA 1 and SYGMA 2 trials. SYGMA 1 showed that using Symbicort as an anti-inflammatory reliever, in place of a short-acting beta-agonist alone, has the potential to reduce the risk of severe asthma attacks in this patient population by 64%.
 
In April 2019, the Global Initiative for Asthma (GINA) announced updated global recommendations for clinical practice and the treatment of patients with differing asthma severities. The 2019 GINA Pocket Guide for Asthma Management and Prevention recommends the use of low dose ICS-formoterol combination therapy, as needed, as the preferred reliever therapy across all asthma severities. Short-acting beta-2 agonist monotherapy, as-needed, is no longer recommended as a preferred reliever therapy.
 
b) Fasenra (asthma)
During the period, a Phase II trial demonstrated that Fasenra can achieve near-complete depletion of eosinophils and improve clinical outcomes in hypereosinophilic syndrome (HES); the results were published in the New England Journal of Medicine. The US FDA granted Orphan Drug Designation for Fasenra for the treatment of HES in February 2019. Fasenra is currently approved as an add-on maintenance treatment for patients with severe, eosinophilic asthma in the US, EU, Japan and other markets.
 
c) Tudorza (COPD)
In March 2019, the US FDA granted regulatory approval for Tudorza based on the results from the ASCENT trial, which fulfilled a post-approval commitment to conduct a randomised, controlled trial to evaluate the risk of MACE with Tudorza as a treatment for patients with COPD. The trial achieved its co-primary endpoints for safety (MACE) and efficacy (exacerbation reduction); the data from the ASCENT trial has now been added to the US label. Tudorza is a LAMA, administered twice-daily via the breath-actuated inhaler, PressairTudorza was approved first in the US in 2012 for the maintenance treatment of COPD.
 
d) Duaklir (COPD)
In March 2019, the US FDA approved Duaklir as a maintenance treatment for patients with COPD. The approval was based on data from three Phase III trials, namely ACLIFORM, AUGMENT and AMPLIFY. The label also included clinical data from the ASCENT trial, which showed that Duaklir was effective at reducing COPD exacerbations. Duaklir is a fixed-dose LAMA/LABA combination, administered twice-daily via Pressair. It is the only twice-daily LAMA/LABA treatment in the US with COPD-exacerbation data included in its prescribing information.
 
As part of the collaboration agreement announced in March 2017, Circassia Pharmaceuticals plc will be responsible for Duaklirin the US with AstraZeneca continuing to manufacture and supply the medicine.
 
e) PT010 (COPD)
During the period, the Company received regulatory submission acceptance for PT010 from the US FDA and the EMA, respectively. The acceptance was based on results from the KRONOS Phase III trial, which was published in The Lancet Respiratory Medicine in October 2018. Results of the Phase III ETHOS exacerbations trial are anticipated in H2 2019, potentially further characterising the overall profile of PT010 as a new medicine for patients with COPD.
 
f) Tezepelumab (severe, uncontrolled asthma)
During the period, the first patient was recruited into the Phase III DESTINATION trial, evaluating the safety and tolerability of tezepelumab in adults and adolescents with severe, uncontrolled asthma.
 
g) Saracatinib (IPF)
In March 2019, the US FDA granted Orphan Drug Designation for saracatinib, a potential new medicine for the treatment of IPF, a type of lung disease that results in scarring (fibrosis) of the lungs. IPF is a chronic, progressive, irreversible and ultimately fatal interstitial lung disease which affects c.100,000 patients per year in the US. Saracatinib is an inhibitor of Src kinase, which regulates broad cell functions including cell growth and cell differentiation. Pre-clinical trials of saracatinib showed that it inhibits fibroblast activity and collagen deposition, which are key features of lung fibrosis. More recently, saracatinib completed its Phase I development.
 
Other medicines
There were no research & development updates for medicines outside of the three main therapy areas in the period.
 
 
 
For more details on the development pipeline, including anticipated timelines for regulatory submission/acceptances, please refer to the latest Clinical Trials Appendix available on astrazeneca.com.
 
 
 
 
Condensed consolidated statement of comprehensive income
 
 
For the quarter ended 31 March
 
2019 
$m 
 
2018 
$m 
Product Sales
 
5,465 
 
4,985 
Collaboration Revenue
 
26 
 
193 
Total Revenue
 
5,491 
 
5,178 
Cost of sales
 
(1,129)
 
(1,134)
Gross profit
 
4,362 
 
4,044 
Distribution costs
 
(78)
 
(81)
Research and development expense
 
(1,266)
 
(1,279)
Selling, general and administrative costs
 
(2,514)
 
(2,457)
Other operating income and expense
 
593 
 
469 
Operating profit
 
1,097 
 
696 
Finance income
 
55 
 
35 
Finance expense
 
(367)
 
(343)
Share of after-tax losses in associates and joint ventures
 
(27)
 
(14)
Profit before tax
 
758 
 
374 
Taxation
 
(195)
 
(58)
Profit for the period
 
563 
 
316 
 
 
 
 
 
Other comprehensive income
 
 
 
 
Items that will not be reclassified to profit or loss
 
 
 
 
Remeasurement of the defined benefit pension liability
 
10 
 
27 
Net gains on equity investments measured at fair value through other comprehensive income
 
120 
 
118 
Fair value movements related to own credit risk on bonds designated as fair value through profit or loss
 
(1)
 
(1)
Tax on items that will not be reclassified to profit or loss
 
(43)
 
(27)
 
 
86 
 
117 
Items that may be reclassified subsequently to profit or loss
 
 
 
 
Foreign exchange arising on consolidation
 
53 
 
167 
Foreign exchange arising on designating borrowings in net investment hedges
 
(180)
 
(99)
Fair value movements on cash flow hedges
 
(54)
 
111 
Fair value movements on cash flow hedges transferred to profit or loss
 
47 
 
(80)
Fair value movements on derivatives designated in net investment hedges
 
 
(46)
Costs of hedging
 
(6)
 
(10)
Tax on items that may be reclassified subsequently to profit or loss
 
23 
 
20 
 
 
(114)
 
63 
Other comprehensive income for the period, net of tax
 
(28)
 
180 
Total comprehensive income for the period
 
535 
 
496 
 
 
 
 
 
Profit attributable to:
 
 
 
 
Owners of the Parent
 
593 
 
340 
Non-controlling interests
 
(30)
 
(24)
 
 
563 
 
316 
 
 
 
 
 
Total comprehensive income attributable to:
 
 
 
 
Owners of the Parent
 
565 
 
520 
Non-controlling interests
 
(30)
 
(24)
 
 
535 
 
496 
 
 
 
 
 
Basic earnings per $0.25 Ordinary Share
 
$0.47 
 
$0.27 
Diluted earnings per $0.25 Ordinary Share
 
$0.47 
 
$0.27 
Weighted average number of Ordinary Shares in issue (millions)
 
1,267 
 
1,266 
Diluted weighted average number of Ordinary Shares in issue (millions)
 
1,268 
 
1,267 
 
 
 
 
Condensed consolidated statement of financial position
 
 
 
 
At 31 Mar
2019
$m
 
 
At 31 Dec
2018
$m
 
 
At 31 Mar
2018
$m
ASSETS
Non-current assets
 
 
 
 
 
 
Property, plant and equipment
 
7,446 
 
7,421
 
7,721
Right-of-use assets
 
707 
 
 
Goodwill
 
11,674 
 
11,707
 
11,834
Intangible assets
 
22,852 
 
21,959
 
25,850
Investments in associates and joint ventures
 
76 
 
89
 
187
Other investments
 
1,530 
 
833
 
987
Derivative financial instruments
 
94 
 
157
 
594
Other receivables
 
496 
 
515
 
525
Deferred tax assets
 
2,531 
 
2,379
 
2,401
 
 
47,406 
 
45,060
 
50,099
Current assets
 
 
 
 
 
 
Inventories
 
3,050 
 
2,890
 
3,283
Trade and other receivables
 
5,289 
 
5,574
 
5,444
Other investments
 
822 
 
849
 
866
Derivative financial instruments
 
234 
 
258
 
21
Income tax receivable
 
118 
 
207
 
563
Cash and cash equivalents
 
4,136 
 
4,831
 
3,005
Assets held for sale
 
 
982
 
 
 
13,649 
 
15,591
 
13,182
Total assets
 
61,055 
 
60,651
 
63,281
 
LIABILITIES
Current liabilities
 
 
 
 
 
 
Interest-bearing loans and borrowings
 
(3,544)
 
(1,754)
 
(4,170)
Lease liabilities
 
(175)
 
 
Trade and other payables
 
(13,102)
 
(12,841)
 
(11,481)
Derivative financial instruments
 
(28)
 
(27)
 
(40)
Provisions
 
(397)
 
(506)
 
(1,011)
Income tax payable
 
(1,010)
 
(1,164)
 
(1,462)
 
 
(18,256)
 
(16,292)
 
(18,164)
Non-current liabilities
 
 
 
 
 
 
Interest-bearing loans and borrowings
 
(17,320)
 
(17,359)
 
(15,684)
Lease liabilities
 
(539)
 
 
Derivative financial instruments
 
(5)
 
(4)
 
(10)
Deferred tax liabilities
 
(3,267)
 
(3,286)
 
(3,987)
Retirement benefit obligations
 
(2,385)
 
(2,511)
 
(2,516)
Provisions
 
(379)
 
(385)
 
(384)
Other payables
 
(6,875)
 
(6,770)
 
(7,963)
 
 
(30,770)
 
(30,315)
 
(30,544)
Total liabilities
 
(49,026)
 
(46,607)
 
(48,708)
Net assets
 
12,029 
 
14,044 
 
14,573 
 
EQUITY
 
 
 
 
 
 
Capital and reserves attributable to equity holders of the Company
 
 
 
 
 
 
Share capital
 
317 
 
317
 
317
Share premium account
 
4,438 
 
4,427
 
4,407
Other reserves
 
2,046 
 
2,041
 
2,027
Retained earnings
 
3,682 
 
5,683
 
6,164
 
 
10,483 
 
12,468
 
12,915
Non-controlling interests
 
1,546 
 
1,576
 
1,658
Total equity
 
12,029 
 
14,044
 
14,573
 
Condensed consolidated statement of changes in equity
 
 
 
Share
capital
$m
 
Share
premium
account
$m
 
Other
reserves
$m
 
Retained
earnings
$m
 
Total
attributable
to owners
$m 
 
Non- controlling interests
$m
 
Total
equity
$m
At 1 Jan 2018
 
317
 
4,393
 
2,029
 
8,221 
 
14,960 
 
1,682 
 
16,642 
Adoption of new accounting standards
 
-
-
-
-
 
(91)

(91)
 
 
(91)
Profit for the period
 
-
 
-
 
-
 
340 
 
340 
 
(24)
 
316 
Other comprehensive income
 
-
 
-
 
-
 
180 
 
180 
 
 
180 
Transfer to other reserves
 
-
 
-
 
(2)
 
 
 
 
Transactions with owners:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Dividends
 
-
 
-
 
-
 
(2,402)
 
(2,402)
 
 
(2,402)
Issue of Ordinary Shares
 
-
 
14
 
-
 
 
14 
 
 
14 
Share-based payments charge for the period
 
-
 
-
 
-
 
52 
 
52 
 
 
52 
Settlement of share plan awards
 
-
 
-
 
-
 
(138)
 
(138)
 
 
(138)
Net movement
 
-
 
14
 
(2)
 
(2,057)
 
(2,045)
 
(24)
 
(2,069)
At 31 Mar 2018
 
317
 
4,407
 
2,027 
 
6,164 
 
12,915 
 
1,658 
 
14,573 
 
 
Share
capital
$m
 
Share
premium
account
$m
 
Other
reserves
$m
 
Retained
earnings
$m
 
Total
attributable
to owners
$m 
 
Non- controlling interests
$m
 
Total
equity
$m
At 1 Jan 2019
 
317
 
4,427
 
2,041
 
5,683 
 
12,468 
 
1,576 
 
14,044 
Adoption of new accounting standards[50]
 
 
-
 
-
 
54 
 
54 
 
 
54
Profit for the period
 
 
-
 
-
 
593 
 
593 
 
(30)
 
563 
Other comprehensive loss
 
 
-
 
-
 
(28) 
 
(28) 
 
-
 
(28) 
Transfer to other reserves
 
 
-
 
5
 
(5)
 
 
 
Transactions with owners:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Dividends
 
 
-
 
-
 
(2,403)
 
(2,403)
 
 
(2,403)
Issue of Ordinary Shares
 
 
11
 
-
 
 
11 
 
 
11 
Share-based payments charge for the period
 
 
-
 
-
 
53 
 
53 
 
 
53 
Settlement of share plan awards
 
 
-
 
-
 
(265)
 
(265)
 
 
(265)
Net movement
 
 
11
 
5
 
(2,001)
 
(1,985)
 
(30)
 
(2,015)
At 31 Mar 2019
 
317 
 
4,438
 
2,046
 
3,682 
 
10,483 
 
1,546 
 
12,029 
 
 
 
Condensed consolidated statement of cash flows
 
 
For the quarter ended 31 March
 
 
2019 
$m 
 
 
2018 
$m 
Cash flows from operating activities
 
 
 
 
Profit before tax
 
758 
 
374 
Finance income and expense
 
312 
 
308 
Share of after-tax losses of associates and joint ventures
 
27 
 
14 
Depreciation, amortisation and impairment
 
676 
 
709 
Increase in working capital and short-term provisions
 
(710)
 
(993)
Gains on disposal of intangible assets
 
(512)
 
(65)
Non-cash and other movements
 
(396)
 
(242)
Cash generated from operations