Partnering for GrowthThomas Jefferson University, June 7th, 2013Chris Yochim, Director, External Relations

Strategic Partnering and Business Development

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Partnering for Growth

Agenda

• Our strategic priorities and platforms for growth

• Partnering strategy and capabilities

• Academic Collaborations to drive scientific leadership

Driving strategic priorities

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Achieve scientific leadership

Focus on 3 distinct core disease areas

Prioritise and accelerate our pipeline

Strengthen our capabilities in translational science and personalised medicine

Transform our innovation and culture model

We will focus on distinctive science in our core therapy areas

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Neuroscience

Infection & Vaccines

Cardio- Metabolism

Respiratory/ inflammation

Core TAs

Oncology

Opportunity-Driven

Protein engineeringBiologics

Small Molecules Immuno-therapies

Build biologics/specialty care potential to drive sustainable longer term growth

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• On track for sustainable delivery of 1 BLA/year from 2016

• Convert strong biologics pipeline into future launches

• Create a balanced primary and specialty care product portfolio

Development Pipeline Today

~50%Biologics

~50%Small Molecules

BLA = Biologics License Application

Development (Phase I-III) pipeline today has grown to ~50% biologics

Return to growth

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Saudi Arabia~$170 Million

China~$1.5 Billion

Russia~$300 Million

Brazil~$500 Million

Mexico~$240 Million

Turkey~$250 Million

S. Korea~$240 Million

AZ Emerging Markets – A platform for success

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Source: Internal 2012 Ex Factory Sales / IMS

6th

fastest growing MNC pharma player across Emerging Markets

~$6bn sales in Emerging Markets

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Partnering for Growth

Agenda

• Our strategic priorities and platforms for growth

• Partnering strategy and capabilities

• Academic Collaborations to drive scientific leadership

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Approximately 40% of our pipeline is sourced through external partnerships

AstraZeneca partnering strategy is focused on supplementing and complementing our core therapy areas and scientific capabilities

Pursue in-licensing and bolt-on acquisitions that strengthen the core TA portfolios

Seek 1-2 additional global peer-to-peer partnerships beyond BMS and Amgen alliances

Increased focus on early stage research deals and academic alliances in 2013

Working in collaboration is an ongoing part of our new strategy

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Building direct early access to our R&D

Scouting Diligence Transaction Alliance Mgmt

GlobalMedicines

Development

Internaland externalopportunities

Market

InnovativeMedicines UnitsSmall Molecules

InnovativeMedicines Units

Biologics

Late-stageDevelopment

Discovery and Early Development

R&D Enabling functions

Cardiovascular/ Gastrointestinal

Oncology Respiratory and Inflammation

CNS and Pain

InfectionNew Opportunities

Science and Technology

Personalised Healthcare and

Biomarkers

Emerging Markets and

Asia R&D

Cross functional transaction team

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Truly global commercial operations footprint with both primary and specialty care focus

A large and growing presence in emerging markets including China, Brazil, Russia

Sales, marketing and medical excellence to tailor brands and drive performance in 100 countries

Innovative sales and marketing channels to better serve the needs of today’s customers

Life-cycle management expertise to help extend the value of the products we market

As a Commercial partner we bring....

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As a Development partner we bring...

90% of pipeline addresses payer evidence to support reimbursement

87% of projects apply new methods of clinical design and interpretation

A global R&D footprint with local insights and capabilities

World-class regulatory, manufacturing and protein engineering capabilities

75% of our portfolio applies a personalised healthcare approach

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Partnering for Growth

Agenda

• Our strategic priorities and platforms for growth

• Partnering strategy and capabilities

• Academic Collaborations to drive scientific leadership

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Academic Alliance: History of strategic collaboration

• Key Strategic Alliances (Since Jan 2011)

• Collaborative Research (201)

• Consortiums & Foundations (41)– Dundee – Biomarker/Safety– Regional Economic Development– Medicines for Malaria– TB Consortium

• MTA’s 300+

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Creative alliances to drive early scientific discovery projects

• A5 alliance, to study a major risk factor for Alzheimer's disease, the apolipoprotein E4 genotype (ApoE)– Alzheimer's Disease Research Institute at Weill Cornell, Washington University in St

Louis, The Feinstein Institute for Medical Research and the University of British Columbia.

• 7 Way-Consortium: Critical Path to TB Drug Regimens– AstraZeneca, Bayer, Sanofi and Tibotec have signed on with TB Alliance and the World

Health Organization to share information about the TB compounds in their pipelines to quickly identify and collaborate to develop the most promising TB drug regimens

• AZ & GSK forge alliance with Univ. Manchester Collaborative Centre for Inflammation – Unique Pre-Competitive collaboration to establish a world-leading translational centre for

inflammatory diseases. Scientists will be recruited for new positions to direct the research in line with strategic priorities set jointly by GSK, AstraZeneca and The University of Manchester, with the ultimate goal of translating findings into new and improved treatments.

• Broad Institute– The Broad Institute's 100,000 compound library will be tapped for weapons against drug

resistant strains of bacteria. targeted towards the discovery of new antibiotics and other treatments for infectious diseases.

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Fostering Alliances for Clinical Development

• Fostering helps us to broaden our drug development activity by working with experienced clinical development institutions which can take the lead on early-stage development of AstraZeneca compounds. When the compounds reach the proof-of-concept stage, we can opt in and continue development with a milestone payment, or we can opt out and receive a royalty later on when the compound is approved and commercialized– Singapore National University and the National Cancer Centre

development of AstraZeneca compounds for hepato-cellular carcinoma which have already undergone clinical testing in western locations. Applying their experience to conduct clinical trials in wider patient populations, broadening our drug development capabilities in Asia.

– Cancer Research UK and Cancer Research Technology - the charity's development and commercialisation arm. AstraZeneca’s compound, AZD-3965 – a first-of-its-kind experimental drug to potentially treat a range of cancers- into clinical development. Working with CRT will enable a compound with a very exciting mechanism to be evaluated in patients using Cancer Research UK’s extensive clinical network.

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Partnering areas of interest

Cardiovascular & Gastrointestinal• Our research focuses on small molecule and biologics for diabetes

and diabetic complications, obesity, atherosclerosis, haemostasis, gastrointestinal, abdominal aortic aneurysm, bleeding disorders as well as re-profiling compounds, innovative drug-delivery systems and regenerative medicine.

Oncology• Our small and large molecule research focuses on cancer of the

breast, prostate, gastrointestinal tract, lung, as well as haematological malignancies, “niche” cancers, novel technologies and biomarkers.

Respiratory & Inflammation• We are particularly interested in asthma, chronic obstructive

pulmonary disease, rheumatoid arthritis, systemic lupus erythematosus and novel inhalation approaches.

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Partnering areas of interestInfection• Our partnership interests also include: viral infections such as respiratory

viruses (e.g flu, RSV), HCV, HBV and herpes family viruses, as well as systemic fungal infections, and diagnostics. Novel vaccines to address bacterial and viral infections with limited current treatment options are also of interest.

Neuroscience• We are interested in small and large molecule research to discover and

develop new treatments in neurology, psychiatry and pain.

Personalised Healthcare & Biomarkers• We are looking for additional biomarker capabilities that can deliver clinically

meaningful segmentation of therapeutic response, including methodology for patient selection, disease identification, and pharmacological assessment.

Science & Technology• Key areas of interest include predictive safety and predictive efficacy

platforms, target validation tools and technologies, novel HTS/lead generation approaches, novel chemical libraries with evidence of biological relevance, stem cell biology and, novel technologies for antibodies and vaccines.

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Personalised Healthcare – an open approach to collaboration

• Partnership and collaboration at the core of PHC strategy

– No single partner can address all of our PHC needs

– Series of partnerships will help us to achieve our aims

• Strategic alliances with key academic centres and independent diagnostic developers

• Early engagement with partners enables us to share needs and match up partner products

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• Differentiated value proposition vs. future standard of care• Invest to win / priority areas – DTPP / CDTP• Market access / payer / provider focus• Personalised healthcare strategy including diagnostic / biomarkers

Diligence Process: Five Dimensions for success

• Strong link between target and disease• Differentiating efficacy• Available and predictive biomarkers

• Adequate bioavailability and tissue exposure• Human PK / PD prediction, PD biomarkers• Drug-drug interaction

• Clear assessment of safety risks• Clear understanding of risk-benefit• Availability of predictive biomarkers

• Scientific evidence in lead indication• Risk / benefit stratification of patient population• PHC strategy including diagnostic / biomarkers

Right target

Right tissue/Right exposure

Right safety

Right patients

Right commercial

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Desire to create partnerships that achieve mutual goals

Rapid evaluation and insightful feedback to partners

Alliance management continuity throughout the deal life cycle

Focused commitment to early and late-stage partnering

Expertise in biologics and small molecule discovery, development

and manufacturing

Exceptional commercial and R&Dpresence in emerging markets

and Asia

Innovative commercial channels, underpinned by global reach

Exclusive focus on innovative pharmaceutical medicines

Access to early payer and regulatory involvement to secure reimbursement

and market access

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Why Partner with AstraZeneca?

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For more information about partnering with AstraZeneca, visit

astrazeneca.com/partnering

Chris.yochim@astrazeneca.com