Pascal Soriot: To specific points, I mean Lynparza is growing and of course has a negative effect on margin. The other point that maybe is important to keep in mind is the emerging market. The emerging markets have — they are very accretive in profitability — in profit and dollar profit, but they have, they tend to have lower gross margin. And then as you could see — as you can see this year, they’re growing tremendously. The unmet needs in those countries are enormous. And we have a tremendous commercial presence, commercial footprint now. We are rapidly becoming top three company in every market around the world. And of course, we’re number one in China in particular, but we’re number two, number three in most of those countries, they are growing very, very rapidly.
They’re generating additional profit, but the gross margin rate, the percentage is a bit lower, not massively lower, but a bit lower and it’s a sort of a drag towards the lower average. So you have put some text in this gross margin. Peter Welford, Jefferies.
Peter Welford: Hi, thanks for taking my questions. I got two. Firstly on China. I guess maybe want to Leon, if he’s on the call would be. I’m wondering if in a sort of slowly emerging post-COVID world in China, whether you think we’ll see changes in the attitude of both patients and also doctors in terms of treatments. So will we still see patients to the same extent going to hospitals and perhaps going to some of the major cities? Or do you think we’ll continue to see a more spread out level of care, if you like in China, and how that impacts your thinking with regards to the commercial footprint in China? And particularly as well, I guess with regard to something like a rare disease unit where obviously potentially in the developed world, at least, vicinity to patient is often used as a key sort of feature to supply the drug to the patients in the market.
And then secondly, a slightly I guess, question, perhaps for Aradhana. But I wonder if you could just talk us through what seems to have happened to the sort of FX or how we should think about the FX impact on your cost base. I guess since taking over Alexion the level of natural hedge if we call it that in the margin that Astra used to have, seems to have somewhat declined that there’s more impact now on the profit from the dollar move we’re seeing. Can you just talk a little bit about — I guess how we should think about Alexion. I’m assuming that is what it is impact on the cost base has driven that change. Thank you.
Pascal Soriot: Okay, so, Leon, do you want to take the first question?
Leon Wang: Yes. Yes, actually COVID case this is as to happening in China and also China still taking the zero COVID policy. So patients for a short treatment, acute treatment like inhaled nebulizer that is a more impacted versus oncology and chronic disease management type of products. So I think — and the right now is still active to the hospital patient visits in 20%, 30% of the urban population. But AstraZeneca is a widespread covering company and the number one company in China. So we are covering multiple channels and the Community Center, County Hospital online. So today is 11/11. So I think it’s a lot of even prescription medicine, a big selling online with prescription for chronic disease refill prescription. So I think AstraZeneca can definitely manage this COVID situation better than other company, and differ greatly by products.
For rare diseases, I think it’s still under diagnosed and also affordability is a primary issue in China. So if affordability can be the situation can be improved with an RDL and commercial insurance and charity program, and also company support patient support programs, so that we can definitely improve the treatment and diagnosis rates in China for rare disease.
Pascal Soriot: Thanks, Leon. Aradhana?
