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

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Aradhana Sarin: So I think the question was really relating to the R&D expense that you have for 2023. So again, we will not give guidance for 2023 today. But as I mentioned, we do expect to maintain strong investment in R&D, we’ve shown a very strong track record. And we’ve said that our R&D expense will remain sort of in the low 20s percentage as a percentage of revenue. Obviously, that will be underpinned by high-quality assets that will continue to advance.

Pascal Soriot: Maybe one thing I could add to this is, and brings us back to our products. I mean, if you look at it, Enhertu has enormous potential. I think we’ve just mentioned it, but we have to support it. I think Dato-DXd is probably still underestimated, it has enormous potential. And we will, together with our partner Daiichi Sankyo, we were really invest in it to maximize it. Now we are very excited recently as you heard from Susan, to see the results of SERENA-2 study. Camizestrant has good potential, great potential, but we have to invest in it and we are doing this. And many more like this, we are investing in Tezspire, we are looking at our IL-33 and we will also look at based on the results we see in Phase II, we will also look at potential investing in several indications.

So we will maximize the value of each key asset we have. They all have large potential, but of course, it will require R&D investments. So certainly our goal is to continue investing in R&D at the same level, as we’ve said before, which isn’t the sort of low 20s. And by the way, maybe I should also have added that the rare disease early pipeline is starting to mature and over the next 2 to 3 years. We’re very excited to see the kind of products we could actually bring to Phase III and then to patients. So all of this takes us back to continued investment in R&D. There is no question. Mark Purcell at Morgan Stanley. Over to you, Mark.

Mark Purcell: Yes. Thank you, Pascal. Good morning. Good afternoon, everyone. A couple for me. Firstly, on Dato-DXd. Could you sort of help us understand the more predictive biomarker you’ve developed for lung cancer? And the implications for opportunities beyond the first and second-line setting in non small cell lung cancer? What’s your latest thoughts in terms of development there? And then a very quick second in terms of this camizestrant. Is there an opportunity for filing based on an accelerated approval approach on the back of the SERENA-2 data? Thank you very much.

Pascal Soriot: Susan?

Susan Galbraith: Sure. So on Dato-DXd, the biomarker that we’re looking at, will be based on the expression of CHOP 2. And as I’ve said before, I think it’s important that you get the right immunohistochemistry assay for that, and understand the cut offs, which we’re looking at using computational pathology amongst other techniques. So I think that might be important in terms of identifying the right patient population across a number of different potential indications for Dato-DXd. That being said, I think in the first TROPION-Lung01 study, we’re very confident based on the data that we’ve already seen from the Phase I that we can beat the current standard of care in all-comers patient population. With regard to your second question, for all SERD again, the SERENA-2 study was designed as a randomized dose finding study, and the setting of second-line endocrine sensitive breast cancer isn’t one where monotherapy endocrine therapy is perhaps the best opportunity to make the biggest difference for patients.

Nonetheless, we’re excited by the data that we’ve seen in this arena to look forward to showing that at San Antonio. And we’re — we look forward to the confidence that gives us for where we think we can make the biggest difference, which as I’ve said is an early align and the early stage setting of endocrine sensitive breast cancer.

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