AstraZeneca PLC Q2 FY2025 earnings call

• Strong growth momentum: Total revenue up 11% in H1, core EPS up 17%. 19 regulatory approvals since Feb 2025, 12 positive Phase III trials in YTD 2025. • Pipeline progress: Positive trial results in oncology (SERENA-6, DESTINY-Breast09, MATTERHORN), biopharmaceuticals (baxdrostat, gefurulimab), and rare disease (gefurulimab, anselamimab). • Transformative technologies: Progress in IO bispecifics, ADCs, and other innovative platforms. • Financials: Core gross margin expected to decline ~60-70bps in 2025, R&D costs up 17% (23% of total revenue), SG&A up 3%.

Total revenue increased by 11% in the first half. Product sales grew 10%, with alliance revenue up 38% driven by Enhertu, Tezspire, and Beyfortus. Oncology total revenues grew 16% in H1 to $12B, with key products like Tagrisso, Calquence, and Enhertu showing growth. Biopharmaceuticals had 10% growth in H1, with R&I at $4.2B (up 13%) and CVRM at $6.6B (up 8%). Rare Disease Medicine returned to growth in Q2 with 7% revenue increase, totaling 3% growth in H1 to $4.3B, with Ultomiris, Strensiq, and Koselugo performing well.

• Reiterated guidance for high single-digit revenue growth and low double-digit EPS growth in 2025. • Acknowledged second-half weight of certain products (Brilinta LOE, Soliris biosimilar, FluMist) and uncertainty around Farxiga. • Net cash flow from ops up 27% to $7.1B in H1. CapEx expected to increase 50% to $2.2B.

• Factors like Medicare Part D redesign, Soliris biosimilar competition, increased profit share on partnered products, and uncertainty around Farxiga and certain second-half weighted products.

Q: James Gordon at JPMorgan asked about Datroway, AVANZAR, 2030 revenue target, and VEGF bispecifics.

A: Pascal Claude Roland Soriot and others responded, noting $80B target is risk-adjusted across portfolio, Baxdrostat and gefurulimab derisked, and discussed VEGF bispecifics strategy.

Q: Sarita Kapila at Morgan Stanley inquired about Imfinzi's revenue opportunities and Enhertu's integration in breast cancer.

A: David Fredrickson responded on Imfinzi's growth from new indications and Enhertu's expected utilization in breast cancer first-line setting.

Q: Gonzalo Artiach at Danske Bank asked about tozorakimab in COPD and anselamimab's subgroup results.

A: Sharon Barr and Marc Dunoyer discussed tozorakimab's differentiated profile and anselamimab's prespecified subgroup with meaningful clinical benefit.

Q: Sachin Jain at Bank of America questioned Datro AVANZAR TL07 timing and tozorakimab's event rates.

A: Susan Mary Galbraith and Sharon Barr commented on AVANZAR's accrual and tozorakimab's ongoing study progress.

Q: Seamus Fernandez at Guggenheim asked about Enhertu's growth trajectory and obesity opportunity.

A: David Fredrickson and Ruud Dobber talked about Enhertu's growth potential and AstraZeneca's obesity strategy focusing on central fat and metabolic syndrome.

Q: Peter Verdult at BNP Paribas asked about tariffs, Baxdrostat data, and obesity pricing.

A: Aradhana Sarin, Marc Dunoyer, and others addressed tariff dynamics, Baxdrostat data respect for congress, and obesity pricing strategy.

Q: Matthew Weston at UBS inquired about C5 franchise dynamics and Farxiga VBP in China.

A: Marc Dunoyer and Iskra Reic discussed C5 franchise growth and Farxiga's VBP impact in China with potential volume offset.

Q: Luisa Hector at Berenberg asked about diversification, 2030 revenue mix, and pipeline gaps.

A: Pascal Claude Roland Soriot responded on diversification across therapy areas and confidence in pipeline filling to sustain growth.