AstraZeneca PLC (NASDAQ:AZN) Q3 2022 Earnings Call Transcript

Page 12 of 20

Susan Galbraith: Yes. So as we’ve announced, the camizestrant study, SERENA-2 was positive in the overall patient population. We say, we can’t share all of the details ahead of the San Antonio Breast Cancer Conference, but you’ll note that SERENA-2 is a smaller size study than some of the other studies that have recently read it. So, again, I look forward to sharing that and the subdivisions, but we’re confident that the role of this is not just an ESR1 mutant patients, but also in the endocrine sensitive patient population beyond ESR mutated patients.

Pascal Soriot: Thanks, Susan. I mean, Richard the FX is definitely a headwind. I mean, it’s a headwind this year. We have, of course, a hedge if you want because we have cost in pounds and in kroner in particular, and other currencies. And that helps us a little bit, but the strength of the dollar is definitely this year negative on our profitability. And that’s why I mentioned before that to increase our operating margin, as you saw in the context of this negative headwind — FX headwind is really a strong reflection of the underlying strength of the — of our company, of our business. As it relates to next year, I will ask Aradhana to comment.

Aradhana Sarin: Again, we’re not — we give some sensitivity analysis relating to what FX could do this year based on the latest rates that we have. I think the general expectation is that the dollar will remain strong in 2023. So I think you could — again, we’re not providing sensitivity for 2023, which we will do in the beginning of next year. But I think it would be fair to assume similar impact from an FX standpoint, going into next year. Relating to your question on the efficiency improvement, which by the way, also included the synergies that we expect and we’re continuing to drive with the Alexion integration. We remain very much on track on that. And we are obviously including that as part of the drive to continuous margin improvement and reinvesting that efficiency into the business. So that is very much part of our continued improvement in margins.

Pascal Soriot: Thank you. Eric Le Berrigaud at Stifel. Eric, over to you.

Eric Le Berrigaud: Thank you, Pascal. One question and one short on financials. The question is on RNA, on respiratory immunology. For a medium term outlook, we have many on Symbicort, Pulmicort and maybe EOI dropping off in terms of new indication for Fasenra. And on the other side, growing and PTO27 coming and so could you get a sense of over the next 3, 4 years, how all this will balance out? And if we may see just flattening sales slightly decreasing or if there is an opportunity to remain into the positive territory for this franchise overall. And the small short question on tax rates, maybe another financial we saw a drop in tax rate for Q3. How much does that say that we are going to be at the low end of the guidance range for the year? And maybe for the following years whether we should stay around ’22 level? Thank you.

Pascal Soriot: Thank you. Great question. I mean, what do you want to take the first one and maybe, then Mene could also sort of talk a little bit about our pipeline, because it gives you a sense of the long-term potential of this franchise?

Page 12 of 20