Annual Report 2012
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Registered office and Investor relations Registrar US Depositary 2012 20-F Information Form and Report Annual AstraZeneca AstraZeneca Annual Report corporate headquarters [email protected] Equiniti Limited JPMorgan Chase & Co and Form 20-F Information 2012 AstraZeneca PLC Aspect House PO Box 64504 2 Kingdom Street UK: as above Spencer Road St Paul London W2 6BD Lancing MN 55164-0504 UK US West Sussex BN99 6DA US Tel: +44 (0)20 7604 8000 Investor Relations UK Tel: (toll free in the US) Fax: +44 (0)20 7604 8151 AstraZeneca Pharmaceuticals LP Tel: (freephone in the UK) 888 697 8018 1800 Concord Pike 0800 389 1580 Tel: (outside the US) PO Box 15437 Tel: (outside the UK) +1 (651) 453 2128 Wilmington +44 (0)121 415 7033 [email protected] DE 19850-5437 US Swedish Central Securities Tel: +1 (302) 886 3000 Depository Fax: +1 (302) 886 2972 Euroclear Sweden AB PO Box 191 SE-101 23 Stockholm Sweden Tel: +46 (0)8 402 9000 Delivering value This Annual Report is also available on through innovation our website, astrazeneca.com/ annualreport2012 Important information for readers of this Annual Report AstraZeneca Cautionary statement regarding Innovation is at the core of everything we forward-looking statements Welcome to the AstraZeneca The purpose of this Annual Report is to provide Annual Report and Form information to the members of the Company. The do at AstraZeneca – from our research 20-F Information 2012 Company and its Directors, employees, agents and (Annual Report). You will find advisers do not accept or assume responsibility to into effective new medicines to how we this Annual Report on our any other person to whom this Annual Report is website, astrazeneca.com/ shown or into whose hands it may come and any annualreport2012 such responsibility or liability is expressly disclaimed. run our business. In order, among other things, to utilise the ‘safe harbour’ provisions of the US Private Securities Litigation Reform Act of 1995 and the UK Companies Act 2006, we are providing the following cautionary statement: Our goal is to improve health for patients, bring benefits This Annual Report contains certain forward-looking statements with respect to the operations, performance for stakeholders and deliver long-term shareholder value Strategy and financial condition of the Group. Forward-looking through continued successful innovation. To compete as a global statements are statements relating to the future which biopharmaceutical business are based on information available at the time such delivering great medicines statements are made, including information relating to risks and uncertainties. Although we believe that to patients through innovative Our innovation: the forward-looking statements in this Annual Report science and excellence are based on reasonable assumptions, the matters in development and P10 discussed in the forward-looking statements may be > Improves health outcomes for patients commercialisation influenced by factors that could cause actual outcomes and results to be materially different from those expressed or implied by these statements. The forward-looking statements reflect knowledge and > Delivers economic benefits P22 information available at the date of the preparation of this Annual Report and the Company undertakes no for healthcare systems Performance obligation to update these forward-looking statements. We identify the forward-looking statements by using the P104 2012 financial performance words ‘anticipates’, ‘believes’, ‘expects’, ‘intends’ and > Adds value beyond the medicines was defined by significant similar expressions in such statements. Important revenue decline associated factors that could cause actual results to differ materially with the loss of exclusivity from those contained in forward-looking statements, for several products certain of which are beyond our control, include, among > Contributes to our local communities P138 other things, those factors identified in the Principal risks and uncertainties section from page 75 of this Annual Report. Nothing in this Annual Report should be construed as a profit forecast. Inclusion of Reported performance, In a world where the demand for healthcare continues Core financial measures and constant exchange rate growth rates to grow, the advances made through innovation are vital AstraZeneca’s determination of non-GAAP measures Corporate together with our presentation of them within our to address unmet medical need and deliver sustained financial information may differ from similarly titled Governance non-GAAP measures of other companies. improvement in healthcare worldwide. In addition to the regular Statements of competitive position, programme of meetings for growth rates and sales the Board and its Committees In this Annual Report, except as otherwise stated, 2012 was a busy year with new market information regarding the position of our appointments, a record number business or products relative to its or their competition of business development deals is based upon published statistical sales data for the 12 months ended 30 September 2012 obtained from and our strategic review IMS Health, a leading supplier of statistical data to the pharmaceutical industry. For the US, dispensed new or total prescription data and audited sales data are taken, Important information for readers of this Annual Statements of dates Except as otherwise stated, references respectively, from IMS Health National Prescription Audit Report For further information in relation to the inclusion of to days and/or months in this Annual Report are references Financial and IMS National Sales Perspectives for the 12 months reported performance, Core financial measures and constant to days and/or months in 2012. ended 31 December 2012; such data is not adjusted exchange rate (CER) growth rates as used in this Overview Cautionary statement regarding forward-looking for Medicaid and similar rebates. Except as otherwise from page 2 and throughout the Performance and Corporate Statements statements A cautionary statement regarding forward-looking Governance sections from pages 24 and 106 respectively, stated, these market share and industry data from statements and other essential information relating to this Met or exceeded please refer to the Financial Review on page 88. Throughout IMS Health have been derived by comparing our sales Annual Report can be found on the inside back cover. this Annual Report, growth rates are expressed at CER unless financial targets as revenue to competitors’ and total market sales revenues otherwise stated. Directors’ Report The following sections make up the a result of disciplined for that period. Except as otherwise stated, growth Designed and produced by Directors’ Report, which has been prepared in accordance Definitions The Glossary and the Market definitions table from financial management rates are given at CER. For the purposes of this Annual Board and SET photography Marcus Lyon with the requirements of the Companies Act 2006: page 209 are intended to provide a useful guide to terms and and lower Reported Report, unless otherwise stated, references to the world AstraZeneca’s definitions of markets, as well as to acronyms > Strategy tax rate pharmaceutical market or similar phrases are to the This Annual Report is printed on and abbreviations, used in this section and elsewhere in this > Performance 54 countries contained in the IMS Health MIDAS Heaven 42 which is FSC® certified Annual Report. > Corporate Governance Quantum database, which amounted to approximately > Development Pipeline virgin fibre. The pulp is a mix, partly Use of terms In this Annual Report, unless the context > Shareholder Information 92% (in value) of the countries audited by IMS Health. bleached using an Elemental otherwise requires, ‘AstraZeneca’, ‘the Group’, ‘we’, ‘us’ and > Corporate Information ‘our’ refer to AstraZeneca PLC and its consolidated entities. AstraZeneca websites Chlorine Free (ECF) process and Additional Information on or accessible through our websites, partly bleached using a Totally including astrazeneca.com, astrazenecaclinicaltrials.com Chlorine Free process. Printed and medimmune.com, does not form part of and is not in the UK by Pureprint using Information its alcofree® and pureprint® incorporated into this Annual Report. More information about our environmental printing technology, External/third party websites business and about being and vegetable inks were used Information on or accessible through any third party throughout. Pureprint is a CarbonNeutral® company. an AstraZeneca shareholder This Annual Report + or external website does not form part of and is Both the manufacturing mill and the printer are is also available on not incorporated into this Annual Report. registered to the Environmental Management System ISO14001 and are Forest Stewardship Council® our website, Figures chain-of-custody certified. Figures in parentheses in tables and in the Financial astrazeneca.com/ Statements are used to represent negative numbers. annualreport2012 - Overview Introduction and overview Who are we? A year in review 2 AstraZeneca at a glance An introduction to AstraZeneca, what The Chairman and Chief Executive Officer 6 Chairman’s Statement we do and where we do it, and an review how we did in 2012 and consider 8 Chief Executive Officer’s overview of our financial and operational the prospects for 2013 and beyond Review performance in 2012 P2 P6 Strategy Strategy How do we create sustainable value? 12 Our business model The