AstraZeneca PLC (NASDAQ:AZN) Q2 2023 Earnings Call Transcript

Page 19 of 19

Pascal Soriot: Let me call this one, if I may Leon, because, of course, it’s going to be positive, right? Yes. I mean actually, we are very committed upturn and China is, and we remain a very important country for — I think, for the industry, but not only for AstraZeneca. We are very committed. We are building our presence in rare diseases. We have just approved the build of a very important factory in China, in Qingdao to make inhalers for China and potentially export out of China to some emerging markets. So we are definitely committed. We have a strong R&D team. We also, as I said before, leveraging our connections to partner with local biotech companies and help them develop and commercialize their products globally. So it will remain a very important country for us, not only because we have products to sell to help patients there.

And there has — there are lots of patients, but also because it’s a source of innovation. And it is, for us, becoming — or has become some time ago already actually a strategic center. Anything you want to add there, Leon?

Leon Wang: Yes. I think Pascal mentioned quite completely. I think, I really hope that you can pay also more attention to outside China, because outside China, emerging market is larger than China now and are growing much faster. And I think there will be a lot of opportunity in untreated, undiagnosed patient opportunities there. And within China, we still have a lot of products, like biologics for OSTARA and all these important new launches. We’re still very exciting and look forward. And it’s a source of innovation and it’s a manufacturing center, and it’s also a big market.

Pascal Soriot: That’s a good point. I mean outside of China, the growth was 38% first half. So I’m sure you noticed that. Every region of the emerging market regions is growing very strongly. We’ve been accelerating — the catching up on the approval of new products and launching them. So a lot of growth today and also to come. So maybe the last question, Luisa Hector with, Berenberg. Luisa, go agead.

Luisa Hector: Thank you, Pascal. And maybe a chance to say thank you to Mene for sharing his insights over the years and discussions around the productivity. So Mene, maybe a question for you on that to your slide on the breadth of platforms in place in biopharma, my question there would be that actually much of Astra’s success has come from the simplicity of small molecules and antibodies. So with these novel platforms there, does it change anything in the R&D decision-making processes? I think you’re at 6 hours maybe more now, but how does anything change in that decision-making given the complexities of these exciting platforms? And do they carry more risk? Thank you.

Mene Pangalos: Thanks. Luisa, first of all, thank you and the reason I wanted to show the platform is because we have been building them for a long time. And of course, monoclonal antibodies and small molecules remain a very important part of the pipeline. And you know many of the molecules that we have across the pipeline across both oncology and biopharm, but these next-generation platforms are important because the reason why we failed today predominantly is because I signed the hypothesis is wrong, as we go into more genetically validated targets, quite often, you can’t target them with a monoclonal antibody or a small molecule. So having access to gene editing, oligonucleotides, advanced biologics gives you a chance to attack more complicated pharmacology and disease and hopefully improve our probability of success.

And that’s what we’ve been trying to do. So it’s not that we’re not interested in small molecules or biologics. I don’t think our decision-making changes. It just opens up more opportunities in terms of the biology that we can attack.

Pascal Soriot: Thank you, Mene. Such a beautiful question to finish with. Thank you for this. So we’ll end the Q&A here. Thank you, again for all your great interest in our company, and I wish you all a great weekend.

Follow Astrazeneca Plc (NYSE:AZN)

Page 19 of 19