UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
(Mark One)
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REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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OR |
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ANNUAL REPORT PURSUANT TO SECTION
13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
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OR |
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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OR |
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SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Date of event requiring this shell company report ………………………………… ..
For the transition period from to
Commission file number:
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(Exact name of Registrant as specified in its charter) |
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(Jurisdiction of incorporation or organization) |
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(Address of principal executive offices) |
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Telephone: +
Facsimile number: +44 1223 352 858 |
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(Name, Telephone, E-mail and/or Facsimile number and Address of Company Contact Person) |
Securities registered or to be registered pursuant to Section 12(b) of the Act:
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Title of each class |
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Trading symbol(s) |
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Name of each exchange on which registered |
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* Not for trading, but only in connection with the registration of American Depositary Shares representing such Ordinary Shares pursuant to the requirements of the Securities and Exchange Commission.
Securities registered or to be registered pursuant to Section 12(g) of the Act:
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None |
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(Title of Class) |
Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act:
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None |
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(Title of Class) |
Indicate the number of outstanding shares of each of the issuer ’ s classes of capital or common stock as of the close of the period covered by the annual report.
The number of outstanding shares of each class of stock of AstraZeneca PLC as of December 31, 2024 was:
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Title of Class |
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Number of Shares Outstanding |
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Ordinary Shares of 25 ¢ each: |
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Redeemable Preference Shares of £ 1 each: |
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Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.
If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.
Yes
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Note — Checking the box above will not relieve any registrant required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 from their obligations under those Sections.
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T ( § 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or an emerging growth company. See definition of “ accelerated filer, ” “ large accelerated filer, ” and “ emerging growth company ” in Rule 12b-2 of the Exchange Act. (Check one):
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Accelerated Filer ☐ |
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Non-accelerated Filer ☐ |
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Emerging growth company
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If an emerging growth company that prepares its financial statements in accordance with US GAAP, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards † provided pursuant to Section 13(a) of the Exchange Act. ☐
† The term “ new or revised financial accounting standard ” refers to any update issued by the Financial Accounting Standards Board to its Accounting Standards Codification after April 5, 2012.
Indicate by check mark whether the registrant has filed a report on and attestation to its management
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s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report.
If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements.
Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant ’ s executive officers during the relevant recovery period pursuant to § 240.10D-1(b). ☐
Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing:
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US GAAP |
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Other ☐ |
If “ Other ” has been checked in response to the previous question, indicate by check mark which financial statement item the registrant has elected to follow.
☐ Item 17 ☐ Item 18
If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes
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No
(APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PAST FIVE YEARS)
Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Section 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court.
Yes ☐ No ☐
Pursuant to Rule 12b-23(a) of the Securities Exchange Act of 1934, as amended, the information for the 2024 Form 20-F of AstraZeneca PLC (the “Company”) set out below is being incorporated by reference from AstraZeneca’s “Annual Report and Form 20-F Information 2024” included as exhibit 15.1 to this Form 20-F dated and submitted on February 18, 2025.
References below to major headings include all information under such major headings, including subheadings, unless such reference is a reference to a subheading, in which case such reference includes only the information contained under such subheading. Unless the context otherwise requires, “AstraZeneca” or “Group” refers to the Company and its consolidated entities. Other information contained within AstraZeneca’s “Annual Report and Form 20-F Information 2024” included as exhibit 15.1 to this Form 20-F, including graphs and tabular data, is not included in this Form 20-F unless specifically identified below. Photographs are also not included.
In addition to the information set out below, the information (including tabular data) set forth under the headings “Use of terms” on the inside front cover, “Strategic Report—Financial Review—Measuring performance” on page 69, and the tables on pages 70 to 72, “Additional Information—Trade Marks” on page 239, “—Glossary” on pages 240 to 243 and “—Important information for readers of this Annual Report—Cautionary statement regarding forward-looking statements”, “—Inclusion of Reported performance, Core financial measures and constant exchange rate growth rates”, “—Statements of competitive position, growth rates and sales”, “—AstraZeneca websites”, “—External/third-party websites” and “—Figures” on page 244, in each case of AstraZeneca’s “Annual Report and Form 20-F Information 2024” included as exhibit 15.1 to this Form 20-F dated February 18, 2025 is incorporated by reference. References herein to AstraZeneca websites, including where a link is provided, are textual references only and information on or accessible through such websites does not form part of and is not incorporated into this Form 20-F dated February 18, 2025. Reference to “audited” information (including graphs and tabular data) set forth under the heading “Corporate Governance—Directors’ Remuneration Report” refers to procedures performed by the Company’s external auditor in accordance with International Standards on Auditing (UK) (‘ISAs (UK)’) and applicable law and does not form part of the “Report of Independent Registered Public Accounting Firm” in Item 18 herein. For the avoidance of doubt, the “Independent Auditors’ report to the members of AstraZeneca PLC” on pages 139 to 147 of AstraZeneca’s “Annual Report and Form 20-F Information 2024” included as exhibit 15.1 to this Form 20-F dated February 18, 2025 does not form part of, and is not incorporated into, this Form 20-F dated February 18, 2025.
PART 1
ITEM 1. IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS
Not applicable.
ITEM 2. OFFER STATISTICS AND EXPECTED TIMETABLE
Not applicable.
ITEM 3. KEY INFORMATION
A. Reserved
B. Capitalization and Indebtedness
Not applicable.
C. Reason for the Offer and Use of Proceeds
Not applicable.
3
D. Risk Factors
Operating in the pharmaceutical sector carries various inherent risks and uncertainties that may affect our business. In this section, we describe the risks and uncertainties that we consider material to our business, in that they may have a significant effect on our financial condition, results of operations and/or reputation.
These risks have been categorised consistently with the “Risk Overview—Principal Risks” detailed on pages 65 and 66 of AstraZeneca’s “Annual Report and Form 20-F Information 2024” included as exhibit 15.1 to this Form 20-F dated February 18, 2025, each of which are included below (in addition to other risks that we face). We believe that the forward-looking statements about AstraZeneca in this Form 20-F dated February 18, 2025, identified by words such as ‘anticipates’, ‘believes’, ‘expects’ and ‘intends’, are based on reasonable assumptions. However, forward-looking statements involve inherent risks and uncertainties such as those summarised below. They relate to events that may occur in the future, that may be influenced by factors beyond our control and that may have actual outcomes materially different from our expectations. Therefore, other risks, unknown or not currently considered material, could have a material adverse effect on our financial condition or results of operations.
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Product pipeline risks |
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Impact |
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Failure or delay in the delivery of our pipeline or launch of new medicines |
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Our continued success depends on the development and successful launch of innovative new drugs. The development of pharmaceutical product candidates is a complex, risky and lengthy process involving significant resources. Projects have failed, and may fail in the future, at any stage of the process due to various factors, including: failure to obtain the required regulatory or marketing approvals, unfavourable clinical efficacy data, safety concerns, failure to demonstrate adequate cost-effective benefits to regulatory authorities and/or payers, and the emergence of competing products. Details of projects that have suffered setbacks or failures during 2024 can be found in the “Strategic Report—Therapy Area Review” on pages 16 to 31 of AstraZeneca’s “Annual Report and Form 20-F Information 2024” included as exhibit 15.1 to this Form 20-F dated February 18, 2025. Launch activities have been delayed, and may be delayed in the future, by a number of factors, including: adverse findings in preclinical or clinical studies, regulatory demands, price negotiation, large-scale natural disasters or global pandemics, competitor activity and technology transfer. In addition to developing products in-house, we continue to expand our portfolio through licensing arrangements and strategic collaborations which may not ultimately be successful. |
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Failure or delay in development of new product candidates could damage the reputation of our R&D capabilities, and adversely affect our future business and results of operations. Delays to launches can lead to excess expenses in the manufacture of pre-launch inventories, marketing materials and salesforce training. For the launch of products that are seasonal in nature, delays in regulatory approvals or manufacturing may delay launch to the next season which, in turn, may significantly reduce the return on costs incurred in preparing for the launch for that season. Furthermore, in immuno-oncology in particular, speed to market is critical given the large number of clinical trials being conducted by competitors. Delay of launch can also erode the term of patent exclusivity. Competition from other pharmaceutical companies means that we may have to pay a significant premium over book or market values for our acquisitions. Failure to complete collaborative projects in a timely, cost-effective manner may limit our ability to access a greater portfolio of products, intellectual property (“IP”), technology and shared expertise. In many cases, we make milestone payments in advance of the commercialisation of the products, with no assurance of recouping costs. |
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Failure to meet regulatory or ethical requirements for medicine development or approval |
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We are subject to laws and regulations that control our ability to market our pharmaceutical products. Our development programmes must meet many standards to prove our products are safe, effective and of high quality. Health authorities, such as the FDA in the United States and the European Medicines Agency in the European Union, can refuse to approve our products or require us to conduct additional clinical trials or scientific testing before they will approve them for marketing. Many factors influence health authority decisions to approve or reject a marketing application for a pharmaceutical product. These include advances in science and technology, new laws, regulations and policies, and different standards for evaluating safety and effectiveness. |
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Delays in regulatory approvals could delay our ability to market our products and may adversely affect our revenue. Also, post-approval requirements, including additional clinical trials, could cause increased costs. We seek to manage these risks, but policymaking by governments and health authorities can be unpredictable and unforeseen circumstances, such as public health emergencies, may strain health authority resources and delay the approval of our products. Following approval, a health authority may require us to conduct additional clinical trials or scientific testing to address concerns raised after patients have used our products in the marketplace. New data may impact a product’s approval status or lead to labelling changes that limit the use of a product. |
4
D. Risk Factors
continued
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Commercialisation risks |
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Impact |
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Failures or delays in the quality or execution of the Group’s commercial strategies |
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Maximising the commercial potential of our new products underpins the success of our strategy and the delivery of our short- and medium-term targets. We may ultimately be unable to achieve commercial success for various reasons, including: > difficulties in manufacturing sufficient quantities of the product; > any price control measures imposed by governments and healthcare authorities; > patient access to healthcare; > diagnosis rates; > erosion of IP rights; > failure to show a differentiated product profile; and > changes in prescribing habits. The ability to successfully carry out business in emerging markets can be more challenging than in established markets. Such challenges may include: > volatility in economic or political climates; > inadequate protection against crime (including counterfeiting, corruption and fraud); and > inadvertent breaches of local and international law. |
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Failure to execute our commercial strategies or achieve the level of sales anticipated for a medicine could materially adversely impact our business or results of operations. Failure to leverage potential opportunities or appropriately manage risks in emerging markets may materially adversely affect our reputation, business or results of operations. |
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Pricing affordability, access and competitive pressures |
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At AstraZeneca, our approach to pricing balances the priorities of patients, their physicians, payers, society and our business. Our four guiding principles – Access, Value, Sustainability and Equity – aligned to our overarching company values, form the cornerstones of our brand pricing strategies. Our prices are rooted in the assurance of our high-quality science, and the benefit this brings to patients. They also reflect holistic value, in the context of healthcare systems and market dynamics, affordability and equity; so that we can adapt our prices across the more than 100 countries in which we operate and help support long-term healthcare system resilience. Our pricing approach, as described in the previous paragraph, is a key contributor to our success. However, there are various external risk factors that could compromise our ability to execute our pricing strategies as planned. The market access environment is highly complex and subject to dynamic economic, political and social pressures. Globally, there are increasing cost-containment measures, greater calls for net price and R&D cost transparency, as well as early discussions toward pooled procurement mechanisms beyond emergency countermeasures and essential medicines. We have also experienced the first round of drug pricing system reforms in the United States, with associated uncertainty on the long-term impact. |
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Continued deterioration of, or lack of improvement in, socioeconomic conditions could adversely affect supply and/or distribution in affected countries and the ability or willingness of customers to purchase our medicines, putting pressure on price and/or volumes. This could adversely affect our business or results of operations, for example, those healthcare systems most severely impacted by downturn may seek alternative ways to settle their debts at a discount. Other customers may cease to trade, which may result in losses from writing off debts or a reduction in demand for products. Across the industry, the Inflation Reduction Act (“IRA”) in the United States and joint procedures to evaluate comparative clinical effectiveness in the European Union could reduce the value of certain products sooner than planned and impact the R&D pipeline as companies seek to avoid investing in lower yield products. |
5
D. Risk Factors
continued
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Supply chain and business execution risks |
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Impact |
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Failure to maintain supply of compliant, quality medicines |
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We may experience challenges, delays or interruptions in the manufacturing and supply of our products for various reasons, including: > Supply shortages or delays in construction of facilities to support future demand of our products caused by significant unforecasted demand growth or supply chain disruptions (e.g. natural disasters, climate impacts, COVID - 19,conflict or political unrest). > The inability to supply products due to a product quality failure or regulatory compliance action such as licence withdrawal, product recall or change of regulatory standards (e.g. nitrosamines, where regulators have been introducing new limits/expectations for regulatory filings). It is necessary for us to meet all regulations, including compliance with Good Manufacturing Practices (“GMP”) and Good Distribution Practices (“GDP”) and comparable regulatory dossier conditions of approval in all countries in which our products are licensed, manufactured or sold. We rely significantly on third parties for the timely supply of goods (e.g. active ingredients and packaging components, many of which are difficult to substitute in a timely manner or at all). |
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Supply chain difficulties may result in product shortages, which could lead to lost Product Sales and materially affect our reputation and results of operations. Failure to comply with all manufacturing regulations can result in negative regulatory inspection findings that could lead to the halt of manufacturing, and/or product seizure, debarment or recalls which could have an adverse effect on our business, financial condition and results of operations. In the event of insolvency of third-party suppliers, it would be difficult to substitute in a timely manner or at all. |
6
D. Risk Factors
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Illegal trade in the Group’s medicines |
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The illegal trade of pharmaceutical products, including counterfeiting, tampering, theft and illegal diversion (where products are found in a market where we did not send them and where they are not approved to be sold) may lead to a loss of public confidence in the integrity of medicines. |
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The incidence of illegal trade could materially adversely affect our reputation and financial performance, and pose a direct risk to patient safety. In addition, concern about this issue may cause some patients to stop taking their medicines, with consequential risks to their health. If we are found liable for breaches in our supply chains, authorities may take action, financial or otherwise, that could restrict the distribution of our products. |
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Reliance on third-party goods and services |
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A significant proportion of AstraZeneca’s annual costs relates to spend with third-party suppliers. The level of spend supports the length of our value chain from discovery to manufacture and commercialisation of our medicines. Many of our business-critical operations are outsourced to third-party providers. We are, therefore, heavily reliant on these third parties to get medicines to patients, comply with applicable laws and regulations, while also ensuring prudent use of AstraZeneca financial resources. |
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Failure to successfully secure, onboard and manage outsourced services, particularly with continued inflationary pressures, or the failure of outsourced providers to deliver timely services, and to the required level of quality, could materially adversely affect our reputation, our financial condition and operating results as well as our ability to deliver medicines to patients. Failure to effectively manage third-party suppliers when external factors, including geopolitical tensions or raw materials and components shortages, place increased pressure on AstraZeneca’s ability to purchase goods and services may lead to major business disruption. Any breach of security, whether physical, cyber or data related, or failure of these third parties to operate in a way that is consistent with laws or regulations, may lead to regulatory penalties, materially affect the results of operations and adversely impact our reputation. |
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Failure in information technology or cybersecurity |
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IT systems enable critical business functions which are increasingly dependent on partner and vendor IT stability and data integrity. High availability IT systems remain a business imperative, providing our workforce with continuous access to collaboration environments, global communications channels, applications and data. In addition to availability and reliability, these systems must comply with provisions specified in data security, privacy and individual protection laws. Data is a commodity we prioritise continued access to and protection of. It is often characterised as strictly confidential information and examples of strictly confidential data include clinical trial records, personal information, IP, R&D data, and compliance information. IT systems and data are potentially vulnerable to service interruptions and security breaches via attacks by malicious third parties or intentional or inadvertent actions by our employees or vendors. Attempts to exploit AstraZeneca’s IT systems and data are increasingly sophisticated. Threat actors include organised criminal groups, ‘hacktivists’, nation states, employees and others. Privacy legislation includes obligations to report data protection breaches to regulators and affected individuals within expedited timeframes. The internet is our primary critical business transaction channel. Internet availability is increasingly at risk due to geopolitical tensions and conflict. |
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Disruption to our IT systems and/or the internet (including breaches of data security or cybersecurity, failure to integrate new and existing IT systems) or failure to comply with additional requirements under applicable laws, could harm our reputation and materially adversely affect our financial condition or operations. While we invest heavily in the protection of our data and IT, we may be unable to prevent hardware or software failures or breaches which could result in disclosure of confidential information, damage to our reputation, regulatory penalties or sanctions, or financial loss. The inability to back-up and restore data effectively could lead to permanent loss of data that could, in turn, result in non-compliance with applicable laws and regulations and otherwise harm our business. Data loss could lead to public disclosure of confidential information which may damage our reputation, materially affect our business or results of operations, and expose us to legal risks and/or additional legal obligations. Public disclosure of sensitive information could materially adversely affect our reputation and business or operations’ results. Cybersecurity insurance coverage limits may not protect against any future claim or claim proceeds may be delayed. Failure to comply with regulatory disclosure requirements could cause reputational damage and a loss of public trust. |
7
D. Risk Factors
continued
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Failure of critical processes |
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Unexpected events and/or events beyond our control could result in the failure of critical processes within the Group or at third parties on whom we are reliant. The business faces threats to business continuity from many directions. Examples of material threats include: > Disruption to our business or the global markets if there is instability in a particular geographic region, including as a result of war, terrorism, pandemics, armed conflicts, riots, unstable governments, civil insurrection or social unrest. > Natural disasters in areas of the world prone to extreme weather events, which may increase in frequency or severity as a result of climate change. > Cyber threats similar to those detailed in the ‘Failure in information technology or cybersecurity’ section above. |
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Crystallisation of such material threats may heighten certain other risks, such as those relating to the delivery of the pipeline, launch of new medicines, or the manufacture and supply of medicines, and may lead to loss of revenue and have a materially adverse impact on our financial results. |
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Failure to collect and manage data and AI in line with legal and regulatory requirements and strategic objectives |
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Data is increasingly recognised as being AstraZeneca’s most valuable commodity. There is an increasing range of legislative and regulatory requirements to manage data across all countries where we conduct business. These requirements may impact certain types of data such as personal data, the way that we conduct business, such as restricting the movement of data between countries or jurisdictional regions, or how we make use of new technological capabilities such as artificial intelligence (“AI”). In addition, geopolitical changes may require changes to how AstraZeneca manages data. Beyond legal and regulatory requirements, achieving strategic objectives will require good management of data across the enterprise. As our organisation increasingly relies on data, including sensitive data relating to health and genomics, a failure to properly understand personal and collective accountabilities for managing data to maximise its value, or failure to address data risks, will reduce our ability to execute at pace and deliver strategic objectives. AI technologies present significant opportunities and risks to our business. Harnessing AI’s transformative potential may enable AstraZeneca to speed up the discovery and development of new drugs, optimise our manufacturing processes, drive efficiencies and productivity, and accelerate our growth. Failure to exploit these opportunities may put AstraZeneca at a competitive disadvantage. AstraZeneca is investing significant resources into AI experimentation, development and deployment across many parts of our business. As we scale our use of AI, it is possible not all investments will succeed. AI technologies may exacerbate existing risks, like those risks associated with data privacy, cybersecurity and IP. AI also introduces new risks due to the autonomous nature of the technology, the ease at which AI-enabled decision making can be scaled up, and the commercial pressures to adopt AI. AI systems can amplify biased and discriminatory decision making, perform unreliably and malfunction, generate insights which are difficult to interpret and explain, and cause direct harm to individuals or groups. These risks may become more significant as we increasingly utilise AI to inform, augment and automate decision making and processes in sensitive areas (e.g. clinical trials and medical decision making). The adoption and exploitation of AI is occurring under the backdrop of intense global media scrutiny, heightened political attention and low levels of public trust and understanding. There is also a range of new AI regulations being adopted and implemented worldwide, including in the European Union, China and the United States. |
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Despite taking measures designed to ensure compliance with applicable privacy- and AI-related laws and regulations by our personnel and our third parties, non-compliance has occurred and may occur again. If future instances of non-compliance are deemed significant, these may attract material regulatory sanctions or fines and corresponding reputational damage, orders to stop certain processing of personal data, or legal action on behalf of impacted individuals. Further, failure to protect personal data could lead to a competitive disadvantage, loss of trust from our stakeholders, including patients, and prevent us from delivering our strategic objectives. If the scope of data-related laws is expanded or if the interpretation or enforcement of existing laws change or new privacy laws are implemented, AstraZeneca and its third-party vendors may be required to change their business practices or data processing practices and policies. This may lead to substantial compliance-related costs or materially adversely impact our business and financial condition. Our failure to use AI technologies in a way that maintains trust, quality and control in our business activities would pose reputational, legal, regulatory and financial risks to AstraZeneca. Investments in AI may not realise the benefits that were anticipated. |
8
D. Risk Factors
continued
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Failure to attract, develop, engage and retain a diverse, talented and capable workforce |
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We rely heavily on recruiting and retaining talented employees with a diverse range of skills and capabilities to meet our strategic objectives. Externally there is intense competition for well-qualified individuals, as the supply of people with certain skills or in specific geographic regions may be limited. Ensuring our employees are continually developed and engaged with strategic objectives embeds commitment across the workforce. |
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The inability to attract and retain highly skilled personnel may weaken our succession plans for critical positions, impact the implementation of our strategic objectives and ultimately result in the failure of our business operations. Failure to develop and engage our workforce could result in business disruption, a loss of productivity and higher turnover rates, all of which could materially adversely affect our business. Focus in 2025 will be to continue building talent and capability across our global hubs to ensure we are best positioned to support science and the business towards the Ambition 2030. |
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Legal, regulatory and compliance risks |
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Impact |
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Failure to meet our sustainability targets, regulatory requirements and stakeholder expectations with respect to the environment |
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Environmental issues will become more material as healthcare systems continue to adopt net-zero climate targets. Investors, governments and non-governmental organisations will increasingly scrutinise our environmental targets and performance. Environmental considerations are becoming embedded in the public procurement of medicinal products and devices. Specific materials used to manufacture medicines, or used as excipients or propellants, are coming under increased regulation and may be subject to time-limited exemptions or potential phase-out. The physical impacts of climate change could impact the resilience of our business operations and supply chain. |
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Investors are increasingly focusing on environmental issues. We continue to see an increased requirement to quantify the impact of specific environmental issues and to disclose our strategy, targets and performance. Failure to maximise our environmental sustainability credentials could expose us to increased regulatory risk and put us at a commercial disadvantage relative to our peers. This could adversely impact our financial results and lead to reputational damage. Failure to proactively manage the physical risks associated with climate change could impact the resilience of our operations and supply chain. This could result in supply interruptions, loss of stock and adversely impact our financial results. |
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Safety and efficacy of marketed medicines is questioned |
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Our ability to accurately assess, prior to launch, the eventual safety or efficacy of a new product once in broader clinical use can only be based on data available at that time, which is inherently limited due to relatively short periods of product testing and relatively small clinical study patient samples. Any unforeseen safety concerns or adverse events relating to our products, or failure to comply with laws, rules and regulations relating to provision of appropriate warnings concerning the dangers and risks of our products that result in injuries, could expose us to large product liability claims, settlements and awards, particularly in the United States. Adverse publicity relating to the safety of a product, or of other competing products, may increase the risk of product liability claims. Details of material product liability litigation matters can be found in “Financial Statements—Notes to the Group Financial Statements—Note 30—Commitments, contingent liabilities and contingent assets” on page 208 of AstraZeneca’s “Annual Report and Form 20-F Information 2024” included as exhibit 15.1 to this Form 20-F dated February 18, 2025. |
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Serious safety concerns or adverse events relating to our products could lead to product recalls, seizures, loss of product approvals, declining sales and interruption of supply, and could materially adversely impact patient access, our reputation and financial revenues. Significant product liability claims could also arise which could be costly, divert management attention, or damage our reputation and demand for our products. Unfavourable resolution of such current and similar future product liability claims could subject us to enhanced damages, consumer fraud and/or other claims, including civil and criminal governmental actions. This could require us to make significant provisions in our accounts relating to legal proceedings and could materially adversely affect our financial condition or results of operations, particularly where such circumstances are not covered by insurance. |
9
D. Risk Factors
continued
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Adverse outcome of litigation and/or governmental investigations |
||
|
|
|
|
|
Our business is subject to a wide range of laws and regulations around the world. We have been, and may continue to be, subject to various legal proceedings and governmental investigations. Actual or perceived failure to comply with laws or regulations may result in AstraZeneca and/or its employees being investigated by government agencies and authorities and/or in civil legal proceedings. Relevant authorities have wide-ranging administrative powers to deal with any failure to comply with laws, regulations or continuing regulatory oversight, and this could affect us, whether such failure is our own or that of our contractors or external partners. In particular, the manufacturing, marketing, exportation, promotional, clinical, pharmacovigilance and pricing practices of pharmaceutical manufacturers, as well as manufacturer interaction with regulatory agencies, purchasers, prescribers and patients, are subject to extensive regulation, litigation and governmental investigation. Moreover, such laws, rules and regulations are subject to change. Details of material litigations and governmental investigations can be found in “Financial Statements—Notes to the Group Financial Statements—Note 30—Commitments, contingent liabilities and contingent assets” on pages 204 to 211 of AstraZeneca’s “Annual Report and Form 20-F Information 2024” included as exhibit 15.1 to this Form 20-F dated February 18, 2025. |
|
Many companies, including AstraZeneca, have been subject to legal claims asserted by federal and state governmental authorities and private payers and consumers, which have resulted in substantial expense and other significant consequences. Governmental investigations or proceedings could result in civil or criminal sanctions and/or the payment of fines or damages. Civil litigation, particularly in the US, is inherently unpredictable, and unexpectedly high awards for damages can result from an adverse result. In many cases, litigation adversaries may claim enhanced damages in extremely high amounts. Government investigations, litigations, and other legal proceedings, regardless of the outcome, could be costly, divert management attention, or damage our reputation and demand for our products. Unfavourable resolutions to current and similar future proceedings against us that could subject us to criminal liability, fines, penalties or other monetary or non-monetary remedies, including enhanced damages, require us to make significant provisions in our accounts relating to legal proceedings and could materially adversely affect our business or results of operations. |
|
IP risks related to our products |
||
|
|
|
|
|
IP protection provides the foundation for continued investment in developing innovative medicines to improve patient health. However, the pharmaceutical industry is experiencing pressure from governments and other healthcare payers to impose limits on IP protections in an effort to manage healthcare costs. Additionally, policymakers are progressively leveraging regulations to expedite the approval of generic drugs and encourage generic drug utilisation. These policies may drive accelerated utilisation of generic alternatives to our products following expiry or loss of our IP rights. We also recognise increasing use of compulsory licensing in some countries in which we operate. We are subject to numerous patent challenges relating to various products or processes and assertions of non-infringement of our patents. A loss in any of these challenges could result in loss of patent protection on the covered product and a risk to the revenue generated by the product. We also face the risk that our products may be found to infringe patents owned or licensed by third parties and we may be subject to monetary damages or compelled to cease sales of the infringing product, resulting in a potential risk to revenue. These challenges threaten the value of our investment in pharmaceutical development. Details of material patent litigation matters can be found in “Financial Statements—Notes to the Group Financial Statements—Note 30—Commitments, contingent liabilities and contingent assets” on pages 205 to 207 of AstraZeneca’s “Annual Report and Form 20-F Information 2024” included as exhibit 15.1 to this Form 20-F dated February 18, 2025. |
|
If we are unable to obtain, defend and enforce our IP, we may experience accelerated and intensified competition. Also, if our products are found to infringe a third-party patent, we may be subject to monetary damages or compelled to cease sales of the infringing product. These negative outcomes could have an adverse material impact on our financial results. |
10
D. Risk Factors
continued
|
Economic and financial risks |
|
Impact |
|
Failure to achieve strategic plans or meet targets or expectations |
||
|
|
|
|
|
When we communicate our business strategy, targets or performance expectations, all such statements are forward-looking and based on assumptions and judgements, all of which are subject to significant inherent risks and uncertainties. |
|
To achieve our strategic objectives, we must continue to develop commercially viable new products and successfully integrate new organisations we have acquired. There can be no guarantee that our strategy or expectations will materialise. Any failure to successfully implement our business strategy may frustrate the achievement of our financial targets, which may therefore materially damage our brand, business, financial position or results of operations. |
|
|
|
|
|
Geopolitical and/or macroeconomic volatility disrupts the operation of our global business |
||
|
|
|
|
|
With an active presence in more than 80 countries, we are subject to political, socio-economic and financial factors around the world. A sustained global economic downturn may adversely impact financial markets and/or exacerbate pressure from governments and other healthcare payers on medicine prices and other cost control measures in order to limit healthcare spending. Geopolitical tensions may lead to the imposition or escalation of trade controls, tariffs, taxes or other restrictions to market access which may increase our costs or reduce revenues. |
|
A severe or prolonged economic downturn could result in a variety of risks to our business, including weakened demand for medicines and our ability to raise additional capital when needed or on favourable terms, if at all. A weak or declining economy could strain our suppliers, possibly resulting in supply disruption, or cause delays in payments for our services by third-party payers. Measures taken to limit healthcare spending may lead to lower than anticipated rates of growth in some markets and an adverse impact on revenues and profitability. Any escalation in barriers to the global free flow of medicines is likely to increase costs to serve affected markets which may lead to downward pressure on margins. While the introduction of severe sanctions is unlikely in relation to medicines, it could occur if matters escalate significantly and could impact processes for the commercialisation of medicines and levels of sales in affected markets. Any of the foregoing could harm our business and we cannot anticipate all of the ways in which the current economic climate and financial market conditions could adversely impact our business. |
|
Failure in internal control, financial reporting or the occurrence of fraud |
||
|
|
|
|
|
Effective internal controls assist in the provision of reliable financial statements and the detection and prevention of fraud. Testing of internal controls provides only limited assurance over the accuracy of Financial Statements and may not prevent or detect misstatements or fraud. The introduction of new legislation such as the failure to prevent fraud offence in the Economic Crime and Corporate Transparency Act (effective from September 1, 2025) may increase regulator focus on fraud. |
|
Significant resources may be required to remediate any deficiency in internal controls. Any such deficiency may trigger related investigations and may result in fines being levied against individual directors or officers. Serious fraud may lead to prosecution of senior management. Any of the foregoing could adversely affect our financial results and lead to reputational damage. |
11
D. Risk Factors
continued
|
Unexpected deterioration in the Group’s financial position |
||
|
|
|
|
|
Movements in exchange rates against the US dollar, our reporting currency, impact our reported results. The key currencies of Product Sales and costs are: US dollar, Chinese renminbi, euro, Japanese yen, Swedish krona and pound sterling. Most of our cash is invested in AAA credit-rated institutional money market funds, fixed income securities issued by government, financial and non-financial entities, and collateralised and non-collateralised bank deposits. Our credit exposure is a mix of US, EU and rest of world default risk across these institutions. We invest in many projects in an effort to develop a successful portfolio of approved products. Our Consolidated Statement of Financial Position therefore contains significant investments in intangible assets, including goodwill. Our ability to realise value on these investments depends on regulatory approvals, market acceptance, competition, and legal developments. Our defined benefit post-retirement obligations (primarily in the United Kingdom and Sweden) can materially change in value but are largely backed by assets invested in growth and liability hedging portfolios, which hedge some of the risks inherent in liability valuations. Although we maintain relevant insurance coverage for risks arising within the Group, we may not be able to maintain our insurance coverage at a reasonable cost or in sufficient amounts to protect us against losses. Tax law is complex, leading to the risk of different interpretations. Revenue authorities can make conflicting claims to the profits taxed in individual countries leading to double taxation and the potential for fines and penalties. Tax laws can change following action by international bodies such as the Organisation for Economic Co-operation and Development (“OECD”) or individual governments. |
|
Foreign exchange rate movements may materially adversely affect our financial condition or results of operations. In a sustained economic downturn, such institutions may cease to trade and there can be no guarantee that we will be able to access the full value of our investments. We expect that some of our intangible assets will become impaired in the future. Impairment losses may materially adversely affect our financial condition or results of operations. Solvency levels could fall, adversely impacting our financial position and requiring higher cash contributions if there are: falls in assets; increases in liability valuations (from falls in bond yields, increases in inflation or lower mortality); or changes in regulations. As liability valuation risks are hedged to a material level in some pension schemes, significant collateral may need to be posted to meet margin requirements, which in extreme circumstances could lead to a short-term liquidity risk in these pension schemes and a request to the Group to provide temporary liquidity. Uninsured losses, or those where an insurer denies coverage, could materially adversely affect our financial condition. The resolution of tax disputes can result in incremental tax costs, a reallocation of profits or losses between jurisdictions, or even double taxation, fines and penalties. They are costly, divert management attention and may adversely affect our reputation. If tax treaties are withdrawn or amended, or Competent Authorities are unable to reach an agreement that eliminates double taxation, this could materially adversely affect our financial position. For details of our financial risk management policies, see “Strategic Report—Financial Review—Financial risk management” on page 81 and for details of current tax disputes, see “Financial Statements—Notes to the Group Financial Statements—Note 30—Commitments, contingent liabilities and contingent assets” on pages 211 to 212 of AstraZeneca’s “Annual Report and Form 20-F Information 2024” included as exhibit 15.1 to this Form 20-F dated February 18, 2025. Changes in tax laws could result in a material impact on the Group’s cash tax liabilities and tax charge, resulting in either an increase or a reduction in financial results. |
12
ITEM 4. INFORMATION ON THE COMPANY
A. History and Development of the Company
AstraZeneca PLC was incorporated in England and Wales on June 17, 1992 under the Companies Act 1985. It is a public limited company domiciled in the United Kingdom. The Company’s registered number is 2723534 and its registered office is at 1 Francis Crick Avenue, Cambridge Biomedical Campus, Cambridge CB2 0AA, United Kingdom (Tel: +44 20 3749 5000). From February 1993 until April 1999, the Company was called Zeneca Group PLC. On April 6, 1999, the Company changed its name to AstraZeneca PLC.
The Company was formed when the pharmaceutical, agrochemical and specialty chemical businesses of Imperial Chemical Industries PLC were demerged in 1993. In 1999, the Company sold the specialty chemical business. Also in 1999, the Company merged with Astra of Sweden. In 2000, it demerged the agrochemical business and merged it with the similar business of Novartis to form a new company called Syngenta AG. In 2007, the Group acquired MedImmune, a biologics and vaccines business based in the United States. In 2021, the Group acquired Alexion, a rare disease business based in the United States.
In 1999, in connection with the merger between Astra and Zeneca, the Company’s share capital was redenominated in US dollars. On 6 April 1999, Zeneca shares were cancelled and US dollar-denominated shares issued, credited as fully paid on the basis of one dollar-denominated share for each Zeneca share then held.
This was achieved by a reduction of capital under section 135 of the UK Companies Act 1985. Upon the reduction of capital becoming effective, all issued and unissued Zeneca shares were cancelled and the sum arising as a result of the share cancellation credited to a special reserve, which was converted into US dollars at the rate of exchange prevailing on the record date. This US dollar reserve was then applied in paying up, at par, newly created US dollar-denominated shares.
At the same time as the US dollar shares were issued, the Company issued 50,000 Redeemable Preference Shares for cash, at par. The Redeemable Preference Shares carry limited class voting rights, no dividend rights and are capable of redemption, at par, at the option of the Company on the giving of seven days’ written notice to the registered holder of the Redeemable Preference Shares.
A total of 826 million Ordinary Shares were issued to Astra shareholders who accepted the merger offer before the final closing date, 21 May 1999. The Company received acceptances from Astra shareholders representing 99.6% of Astra’s shares and the remaining 0.4% was acquired in 2000, for cash.
In 2021, in connection with the acquisition of Alexion, a total of 236 million Ordinary Shares (the majority of which were represented by new AstraZeneca ADRs) were issued to Alexion shareholders in part consideration for the acquisition.
The information (including tabular data) set forth under the headings “Strategic Report—Financial Review—Collaboration Revenue” on pages 74 to 75, “Strategic Report—Financial Review—Restructuring” on page 76, “Strategic Report—Financial Review—Acquisitions treated as Business combinations” and “—Acquisitions treated as asset acquisitions” on page 79, “Strategic Report—Financial Review—Investments, divestments and capital expenditure” on pages 80 to 81, “Corporate Governance—Corporate Governance Report—Compliance with the UK Corporate Governance Code—Board Leadership and Company Purpose” on page 91 and “Additional Information—Important information for readers of this Annual Report—AstraZeneca websites” on page 244, in each case of AstraZeneca’s “Annual Report and Form 20-F Information 2024” included as exhibit 15.1 to this Form 20-F dated February 18, 2025 is incorporated by reference. Additionally, the information set forth under the heading “Strategic Report—Financial Review” on pages 58 to 74 (excluding the information set forth under the subheadings “Full year 2024: additional commentary” and “Currency impact” on page 71) of AstraZeneca’s “Annual Report and Form 20-F Information 2023” included as exhibit 15.1 to the Form 20-F dated February 20, 2024 is incorporated herein by reference.
The United States Securities and Exchange Commission (the “SEC”) maintains a website at www.sec.gov which contains in electronic form each of the reports and other information that we have filed electronically with the SEC.
13
B. Business Overview
The information (including graphs and tabular data) set forth under the headings “Strategic Report—AstraZeneca at a Glance” on page 6, “Strategic Report—Chair’s Statement” on page 2, “Strategic Report—Chief Executive Officer’s Review” on pages 3 to 4, “Strategic Report—What science can do” on page 5, “Strategic Report—Healthcare in a Changing World” on pages 7 to 9, “Strategic Report—Our Purpose, Values and Business Model” on pages 10 to 11, “Strategic Report—Our Strategy and Key Performance Indicators” on pages 12 to 15, “Strategic Report—Therapy Area Review” on pages 16 to 31, “Strategic Report—Business Review” on pages 32 to 58, “Strategic Report—Disclosure Statements—Our approach to Sustainability Reporting—UK Statutory sustainability reporting” on page 59, “Strategic Report—Disclosure Statements—Our approach to Sustainability Reporting—EU Corporate Sustainability Reporting Directive” and “—EU Taxonomy Disclosure” on pages 60 to 62, “Strategic Report—Risk Overview—Managing risk”,—Emerging risks”,—Climate risk”, “—Cybersecurity Risk” on page 64, “Corporate Governance—Corporate Governance Report—Compliance with the UK Corporate Governance Code—Further information on risk management and controls—Global Compliance and GIA” on page 93, “Corporate Governance—Corporate Governance Report—Principal Decisions in 2024—Acquisitions to strengthen the pipeline” on page 97, “Financial Statements—Notes to the Group Financial Statements—Note 1—Revenue” on pages 160 to 161, “Financial Statements—Notes to the Group Financial Statements—Note 6—Segment information” on page 166 to 168, “Additional Information—Sustainability supplementary information” on pages 233 to 238, and “Additional Information—Important information for readers of this Annual Report—Statements of competitive position, growth rates and sales” on page 244, in each case of AstraZeneca’s “Annual Report and Form 20-F Information 2024” included as exhibit 15.1 to this Form 20-F dated February 18, 2025 is incorporated by reference.
14
Development Pipeline as at February 6, 2025
This section sets out AstraZeneca-sponsored or -directed trial New Molecular Entities (“NMEs”) and significant indications.
Anticipated data timing and submission status is provided for assets in Phase III or beyond. As disclosure of compound information is balanced by the business need to maintain confidentiality, information in relation to some compounds listed here has not been disclosed at this time.
Key:
PP = Partnered product
Phase I
|
Compound |
|
Mechanism |
|
Additional
|
|
Area Under Investigation |
|
|
Oncology |
|
|
|
|
|
|
|
|
AZD0022 |
|
KRas G12D inhibitor |
|
|
|
solid tumours |
|
|
AZD0120 |
|
autologous anti-CD19 and anti-BCMA CAR-T cell immunotherapy |
|
|
|
multiple myeloma |
|
|
AZD0305 |
|
GPRC5D ADC |
|
|
|
relapsed/refractory multiple myeloma |
|
|
AZD0486 |
|
CD19-CD3 TCE |
|
|
|
r/r B-cell non-Hodgkin lymphoma |
|
|
AZD0486 |
|
CD19-CD3 TCE |
|
|
|
B-cell acute lymphoblastic leukaemia |
|
|
AZD0754 |
|
STEAP2 CAR-T |
|
|
|
prostate cancer |
|
|
AZD1390 |
|
ATM inhibitor |
|
|
|
glioblastoma |
|
|
AZD2068 |
|
EGFR cMET radioconjugate |
|
|
|
solid tumours |
|
|
AZD3470 |
|
PRMT5 inhibitor |
|
|
|
classic Hodgkin lymphoma, solid tumours |
|
|
AZD5492 |
|
CD20 TITAN T cell engager |
|
|
|
haematology |
|
|
AZD5851 |
|
GPC3 CAR-T |
|
|
|
hepatocellular carcinoma |
|
|
AZD5863 |
|
CLDN18.2 x CD3 bispecific antibody (HBM7022) |
|
|
|
solid tumours |
|
|
AZD6422 |
|
CLDN18.2 CAR-T |
|
|
|
solid tumours |
|
|
AZD7003 (China) |
|
GPC3 CAR-T |
|
|
|
hepatocellular carcinoma/squamous non-small cell lung cancer |
|
|
AZD8421 |
|
CDK2 inhibitor |
|
|
|
solid tumours |
|
|
AZD9592 |
|
EGFR/cMET TOP1i ADC |
|
|
|
solid tumours |
|
|
AZD9829 |
|
CD123 TOP1i ADC |
|
|
|
acute myeloid leukaemia, myelodysplastic syndromes |
|
|
NT-112 |
|
TGFBR2 KO armored TCR-T targeting KRAS G12D |
|
(PP) |
|
solid tumour |
|
|
NT-125 |
|
autologous, fully-individualised, multi-specific TCR-T targeting neoantigens |
|
(PP) |
|
solid tumours |
|
|
NT-175 |
|
TGFBR2 KO armored TCR-T targeting TP53 R175H |
|
(PP) |
|
solid tumours |
|
|
volrustomig + lenvatinib |
|
PD-1/CTLA-4 bispecific mAb + VEGF |
|
|
|
advanced renal cell carcinoma |
|
|
CVRM |
|
|
|
|
|
|
|
|
AZD0233 |
|
CX3CR1 |
|
|
|
dilated cardiomyopathy |
|
|
AZD1705 |
|
lipid lowering |
|
|
|
cardiovascular disease |
|
|
AZD2373 |
|
podocyte health |
|
|
|
nephropathy |
|
|
AZD4144 |
|
inflammation modulator |
|
|
|
cardiorenal disease |
|
|
AZD9550 |
|
GLP-1R glucagon dual agonist |
|
|
|
non-alcoholic steatohepatitis |
|
|
Respiratory & Immunology |
|
|
|
|
|
|
|
|
AZD0120 |
|
autologous anti-CD19 and anti-BCMA CAR-T cell immunotherapy |
|
|
|
systemic lupus erythematosus |
|
|
AZD1163 |
|
bispecific antibody |
|
|
|
rheumatoid arthritis |
|
|
AZD6793 |
|
IRAK4 inhibitor |
|
|
|
inflammatory diseases |
|
|
AZD6912 |
|
siRNA |
|
|
|
rheumatoid arthritis |
|
|
AZD8965 |
|
inhibition of arginase enzyme |
|
|
|
idiopathic pulmonary fibrosis |
|
|
Vaccines and Immune Therapies |
|
|
|
|
|
|
|
|
AZD0292 |
|
pseudomonas Psl-PcrV bispecific mAb |
|
|
|
non-CF bronchiectasis |
|
|
AZD5148 |
|
anti-clostridioides difficile TcdB mAb |
|
|
|
reduction of C. diff recurrence |
|
|
AZD7760 |
|
mAb combination targeting S aureus virulence factors |
|
|
|
prevention of Staph aureus infection |
|
|
mRNA VLP vaccine |
|
mRNA-VLP vaccine |
|
|
|
prevention of COVID-19 |
|
|
Other Medicines |
|
|
|
|
|
|
|
|
MEDI1814 |
|
amyloid beta mAb |
|
(PP) |
|
Alzheimer’s disease |
|
|
Rare Disease |
|
|
|
|
|
|
|
|
ALXN1920 |
|
kidney-targeted factor H fusion protein |
|
|
|
nephrology |
|
|
ALXN2030 |
|
siRNA targeting complement C3 |
|
|
|
nephrology |
|
|
ALXN2080 |
|
oral factor D inhibitor |
|
|
|
healthy volunteers |
|
15
Phase II
|
Compound |
|
Mechanism |
|
Additional
|
|
Area Under Investigation |
|
|
Oncology |
|
|
|
|
|
|
|
|
AZD0486 SOUNDTRACK-B |
|
CD19/CD3 next-generation bispecific T-cell engager |
|
|
|
B-cell non-Hodgkin lymphoma |
|
|
AZD0901 |
|
CLDN18.2 MMAE ADC |
|
|
|
solid tumours |
|
|
AZD5335 |
|
anti-folate receptor alpha topoisomerase 1 inhibitor ADC |
|
|
|
ovarian cancer, lung adenocarcinoma |
|
|
AZD9574 |
|
PARP1 selective |
|
|
|
advanced solid malignancies |
|
|
camizestrant |
|
selective estrogen receptor degrader |
|
|
|
estrogen receptor +ve breast cancer |
|
|
ceralasertib |
|
ATR inhibitor |
|
|
|
solid tumours |
|
|
FPI-2265 |
|
PSMA radioconjugate |
|
(PP) |
|
prostate cancer |
|
|
IPH5201 + Imfinzi |
|
CD39 + PD-L1 |
|
(PP) |
|
neoadjuvant/adjuvant NSCLC |
|
|
puxitatug samrotecan (AZD8205) |
|
B7-H4 targeting ADC |
|
|
|
solid tumours |
|
|
rilvegostomig ARTEMIDE-01 |
|
PD-1/TIGIT bispecific mAb |
|
(PP) |
|
solid tumours |
|
|
saruparib |
|
PARP1 selective |
|
|
|
solid tumours |
|
|
volrustomig |
|
PD-1/CTLA-4 bispecific mAb |
|
|
|
solid tumours |
|
|
volrustomig eVOLVE-01 |
|
PD-1/CTLA-4 bispecific mAb |
|
|
|
NSCLC |
|
|
volrustomig eVOLVE-02 |
|
PD-1/CTLA-4 bispecific mAb |
|
|
|
cervical cancer, head and neck squamous cell carcinoma |
|
|
CVRM |
|
|
|
|
|
|
|
|
AZD0780 |
|
PCSK9 |
|
|
|
dyslipidaemia |
|
|
AZD2389 |
|
anti-fibrotic mechanism |
|
|
|
metabolic dysfunction-associated steatohepatitis |
|
|
AZD2693 |
|
NASH resolution |
|
|
|
non-alcoholic steatohepatitis |
|
|
AZD3427 |
|
relaxin mimetic |
|
|
|
heart failure |
|
|
AZD5004 |
|
oral GLP-1 receptor agonist |
|
|
|
T2D/chronic weight management |
|
|
AZD5462 |
|
RXFP1 agonist |
|
(PP) |
|
heart failure |
|
|
AZD6234 |
|
peptide |
|
|
|
chronic weight management in overweight or obesity |
|
|
balcinrenone/dapagliflozin |
|
MR modulator + SGLT2 inhibitor |
|
Farxiga in the US; Forxiga in rest of world |
|
CKD |
|
|
zibotentan/dapagliflozin |
|
endothelin A receptor antagonist/SGLT2 inhibitor |
|
dapagliflozin is marketed as Farxiga in the US; Forxiga in rest of world |
|
liver cirrhosis |
|
|
Respiratory & Immunology |
|
|
|
|
|
|
|
|
atuliflapon |
|
FLAP inhibitor |
|
|
|
asthma |
|
|
AZD4604 |
|
inhaled JAK1 inhibitor |
|
|
|
asthma |
|
|
AZD7798 |
|
humanised monoclonal antibody targets T cells subset |
|
|
|
Crohn’s disease |
|
|
AZD8630 |
|
inhaled TSLP FAb |
|
(PP) |
|
asthma |
|
|
tozorakimab FRONTIER 3 |
|
IL-33 mAb |
|
|
|
asthma |
|
|
Vaccine and Immune therapies |
|
|
|
|
|
|
|
|
IVX-A12 |
|
virus-like particle (VLP) vaccine |
|
IVX-A12 is a virus-like particle combination vaccine for the prevention of lower respiratory tract disease (LRTD) caused RSV and hMPV |
|
RSV and human metapneumovirus (hMPV) |
|
|
Other Medicines |
|
|
|
|
|
|
|
|
MEDI0618 |
|
PAR2 antagonist mAb |
|
|
|
migraine |
|
|
MEDI7352 |
|
NGF/TNF bispecific mAb |
|
|
|
osteoarthritis pain and painful diabetic neuropathy |
|
|
Rare Disease |
|
|
|
|
|
|
|
|
MEDI1341 |
|
alpha synuclein mAb |
|
(PP) |
|
multiple system atrophy/Parkinson’s disease |
|
16
Phase III/Pivotal Phase II/Registration (listed until launched in all applicable major markets)
|
Compound |
|
Mechanism |
|
Area Under
|
|
Additional
|
|
Data read-out/submission
|
|
|
Oncology |
|
|
|
|
|
|
|
|
|
|
AZD0486 SOUNDTRACK-F1 |
|
CD19/CD3 next-generation bispecific T-cell engager |
|
follicular lymphoma |
|
|
|
>2026 |
|
|
AZD0901 CLARITY-Gastric01 |
|
CLDN18.2 MMAE ADC |
|
gastric 2L+ |
|
|
|
2026 |
|
|
camizestrant + CDK4/6i SERENA-6 |
|
selective estrogen receptor degrader + CDK4/6 inhibitors |
|
1 st -line HR+ HER2- ESR1m breast cancer |
|
|
|
H2 2025 |
|
|
camizestrant +palbociclib SERENA-4 |
|
selective estrogen receptor degrader + CDK4/6 inhibitor |
|
1 st -line HR+ HER2- breast cancer |
|
|
|
2026 |
|
|
camizestrant CAMBRIA-1 |
|
selective estrogen receptor degrader |
|
HR+ HER2- extended adjuvant breast cancer |
|
|
|
>2026 |
|
|
camizestrant +/- abemaciclib CAMBRIA-2 |
|
selective estrogen receptor degrader + CDK4/6 inhibitor |
|
ER+/HER2- early breast cancer |
|
|
|
>2026 |
|
|
ceralasertib + Imfinzi LATIFY |
|
ATR inhibitor + PDL-1 mAb |
|
NSCLC |
|
|
|
H2 2025 |
|
|
Datroway (datopotamab deruxtecan) TROPION-Breast01 |
|
TROP2 ADC |
|
2-3L HR+ HER2- breast cancer |
|
(PP) |
|
Launched |
|
|
Imfinzi + Imjudo HIMALAYA |
|
PD-L1 mAb + CTLA-4 mAb |
|
1 st -line hepatocellular carcinoma |
|
|
Launched |
|
|
|
Imfinzi +/- oleclumab +/- monalizumab PACIFIC-9 |
|
PD-L1 + NKG2A or PD-L1 + CD73 |
|
unresectable Stage III NSCLC |
|
(PP) |
|
2026 |
|
|
rilvegostomig ARTEMIDE-Biliary01 |
|
PD-1/TIGIT bispecific mAb |
|
adjuvant biliary tract cancer |
|
(PP) |
|
>2026 |
|
|
rilvegostomig ARTEMIDE-Lung02 |
|
PD-1/TIGIT bispecific mAb |
|
squamous NSCLC 1L |
|
(PP) |
|
>2026 |
|
|
rilvegostomig ARTEMIDE-Lung03 |
|
PD-1/TIGIT bispecific mAb |
|
non-squamous NSCLC 1L |
|
(PP) |
|
>2026 |
|
|
saruparib EvoPAR-Breast01 |
|
PARP1Sel |
|
BRCA/PALB2m HR+ve metastatic breast cancer |
|
|
|
>2026 |
|
|
saruparib EvoPAR-Prostate01 |
|
PARP1Sel |
|
metastatic castration-sensitive prostate cancer |
|
|
|
>2026 |
|
|
Truqap + Faslodex CAPItello-291 |
|
AKT inhibitor + fulvestrant |
|
2 nd -line and beyond in AI resistant locally advanced (inoperable) or metastatic breast cancer |
|
|
Launched |
|
|
|
volrustomig eVOLVE-Cervical |
|
PD-1/CTLA-4 bispecific mAb |
|
high-risk locally advanced cervical cancer |
|
|
|
>2026 |
|
|
volrustomig eVOLVE-HNSCC |
|
PD-1/CTLA-4 bispecific mAb |
|
unresected locally advanced head and neck squamous cell carcinoma |
|
|
|
>2026 |
|
|
volrustomig eVOLVE-Lung02 |
|
PD-1/CTLA-4 bispecific mAb |
|
1L metastatic NSCLC |
|
|
|
>2026 |
|
|
volrustomig eVOLVE-Meso |
|
PD-1/CTLA-4 bispecific mAb |
|
1L unresectable malignant pleural mesothelioma |
|
|
|
>2026 |
|
|
CVRM |
|
|
|
|
|
|
|
|
|
|
Andexxa |
|
anti-factor Xa reversal |
|
acute major bleed |
|
|
|
Launched |
|
|
balcinrenone/dapagliflozin |
|
MR modulator + SGLT2 inhibitor |
|
heart failure with CKD |
|
Farxiga in the US; Forxiga in rest of world. |
|
>2026 |
|
|
baxdrostat BaxHTN |
|
aldosterone synthase inhibitor |
|
hypertension |
|
|
|
H2 2025 |
|
|
baxdrostat/dapagliflozin |
|
aldosterone synthase inhibitor and reversible inhibitor of SGLT2 |
|
CKD |
|
|
|
>2026 |
|
|
Wainua |
|
ligand-conjugated antisense |
|
patients with hereditary transthyretin-mediated amyloid polyneuropathy (ATTRv-PN) |
|
(PP) |
|
Launched |
|
|
zibotentan/dapagliflozin |
|
endothelin A receptor antagonist/SGLT2 inhibitor |
|
CKD with high proteinuria |
|
dapagliflozin is marketed as Farxiga in the US; Forxiga in rest of world. |
|
>2026 |
|
|
Respiratory & Immunology |
|
|
|
|
|
|
|
|
|
|
Fasenra CALIMA SIROCCO ZONDA MIRACLE |
|
IL-5R mAb |
|
severe uncontrolled asthma |
|
(PP) |
|
Launched |
|
|
Saphnelo TULIP 1 & TULIP 2 AZALEA (China) |
|
type I IFN receptor mAb |
|
systemic lupus erythematosus |
|
(PP) |
|
Launched |
|
|
Tezspire NAVIGATOR DIRECTION (China) |
|
TSLP mAb |
|
severe uncontrolled asthma |
|
(PP) |
|
Launched |
|
|
tozorakimab OBERON TITANIA PROSPERO MIRANDA |
|
IL-33 mAb |
|
chronic obstructive pulmonary disease |
|
|
|
2026 |
|
|
tozorakimab TILIA |
|
IL-33 mAb |
|
severe viral lower respiratory tract disease |
|
|
|
2026 |
|
|
Vaccine and Immune Therapies |
|
|
|
|
|
|
|
|
|
|
Kavigale (sipavibart) SUPERNOVA |
|
SARS-CoV-2 LAAB |
|
prevention of COVID-19 |
|
|
|
Approved |
|
|
Rare Disease |
|
|
|
|
|
|
|
|
|
|
acoramidis |
|
oral TTR stabiliser |
|
transthyretin amyloid cardiomyopathy |
|
(PP) |
|
Submitted |
|
|
ALXN2220 DepleTTR-CM |
|
transthyretin depleter |
|
transthyretin amyloid cardiomyopathy |
|
(PP) |
|
>2026 |
|
|
anselamimab |
|
fibril-reactive mAb |
|
amyloid light chain amyloidosis |
|
|
|
H2 2025 |
|
|
efzimfotase alfa |
|
next generation TNSALP ERT |
|
hypophosphatasia |
|
|
|
2026 |
|
|
eneboparatide CALYPSO |
|
parathyroid hormone receptor 1 |
|
hypoparathyroidism |
|
|
|
H1 2025 |
|
|
gefurulimab PREVAIL |
|
humanised bispecific VHH antibody |
|
generalised myasthenia gravis |
|
|
|
H2 2025 |
|
17
Significant Life-cycle Management
Anticipated data timing and submission status is provided for assets in Phase III or beyond. Projects in Phase III unless otherwise noted.
|
Compound |
|
Mechanism |
|
Area Under
|
|
Additional
|
|
Data read-out/submission
|
|
|---|---|---|---|---|---|---|---|---|---|
|
|
|
|
|
|
|
|
|
|
|
|
Oncology |
|
|
|
|
|
|
|
|
|
|
Calquence + R-CHOP ESCALADE |
|
BTK inhibitor + R-CHOP |
|
1 st -line diffuse large B cell lymphoma |
|
|
|
>2026 |
|
|
Calquence + venetoclax + obinutuzumab AMPLIFY |
|
BTK inhibitor + BCL-2 inhibitor + anti-CD20 mAb |
|
1 st -line chronic lymphocytic leukaemia |
|
|
|
Accepted |
|
|
Calquence ECHO |
|
BTK inhibitor |
|
1 st -line mantle cell lymphoma |
|
(PP) |
|
Launched |
|
|
Calquence ELEVATE-TN ChangE (China) |
|
BTK inhibitor |
|
1 st -line chronic lymphocytic leukaemia |
|
(PP) |
|
Launched |
|
|
Datroway + Imfinzi AVANZAR |
|
TROP2 ADC + PD-L1 + CTx |
|
non-squamous or non-squamous TROP2+ NSCLC 1L |
|
(PP) |
|
H2 2025 |
|
|
Datroway TROPION-Breast02 |
|
TROP2 ADC |
|
1 st -line triple negative breast cancer |
|
(PP) |
|
H1 2025 |
|
|
Datroway +/- Imfinzi TROPION-Breast03 |
|
TROP2 ADC +/- PD-L1 |
|
adjuvant residual disease triple negative breast cancer |
|
(PP) |
|
2026 |
|
|
Datroway +/- Imfinzi TROPION-Breast04 |
|
TROP2 ADC +/- PD-L1 |
|
neoadjuvant/adjuvant triple negative or HR-low/HER2-negative breast cancer |
|
(PP) |
|
>2026 |
|
|
Datroway +/- Imfinzi TROPION-Breast05 |
|
TROP2 ADC + PD-L1 |
|
1 st -line triple negative breast cancer |
|
(PP) |
|
2026 |
|
|
Datroway TROPION-Lung05 |
|
TROP2 ADC |
|
advanced or metastatic NSCLC with an EGFR mutation and progressed on prior systemic therapies, including TKIs and platinum-based chemotherapy |
|
(PP) |
|
Accepted |
|
|
Datroway + pembrolizumab TROPION-Lung07 |
|
TROP2 ADC |
|
L NSCLC PD-L1 <50% non-squamous |
|
(PP) |
|
2026 |
|
|
Datroway TROPION-Lung08 |
|
TROP2 ADC |
|
1L metastatic NSCLC without actionable genomic alterations and PD-L1 TPS ≥50% |
|
(PP) |
|
2026 |
|
|
Datroway + rilvegostomig TROPION-Lung10 |
|
TROP2 ADC + PD-1/TIGIT bispecific mAb |
|
locally advanced or metastatic non-squamous NSCLC with high PD-L1 expression (TC ≥50%) and without actionable genomic alterations |
|
(PP) |
|
>2026 |
|
|
Datroway + rilvegostomig TROPION-Lung12 |
|
TROP2 ADC + PD-1/TIGIT bispecific mAb |
|
Stage I adenocarcinoma NSCLC who are ctDNA-positive or have high-risk pathological features |
|
(PP) |
|
>2026 |
|
|
Datroway + Tagrisso TROPION-Lung14 |
|
TROP2 ADC + EGFR inhibitor |
|
1L EGFRm NSCLC |
|
(PP) |
|
>2026 |
|
|
Datroway + Tagrisso TROPION-Lung15 |
|
TROP2 ADC + EGFR inhibitor |
|
2L advanced or metastatic EGFRm NSCLC |
|
(PP) |
|
2026 |
|
|
Enhertu (platform) DESTINY-Breast07 |
|
HER2 targeting ADC |
|
HER2+ breast cancer |
|
(PP) Phase II LCM |
|
|
|
|
Enhertu + rilvegostomig DESTINY-BTC01 |
|
HER2 targeting ADC + PD-1/TIGIT bispecific mAb |
|
1L HER2+ biliary tract cancer |
|
|
>2026 |
|
|
|
Enhertu DESTINY-Breast05 |
|
HER2 targeting ADC |
|
HER2+ post-neoadjuvant high-risk breast cancer |
|
(PP) |
|
H2 2025 |
|
|
Enhertu DESTINY-Breast06 |
|
HER2 targeting ADC |
|
post-ET HER2-low and -ultralow/ HR+ breast cancer 2L |
|
(PP) |
|
Launched |
|
|
Enhertu DESTINY-Breast09 |
|
HER2 targeting ADC |
|
1 st -line HER2+ breast cancer |
|
(PP) |
|
H2 2025 |
|
|
Enhertu DESTINY-Breast11 |
|
HER2 targeting ADC |
|
neoadjuvant HER2+ breast cancer |
|
(PP) |
|
H1 2025 |
|
|
Enhertu DESTINY-Gastric04 |
|
HER2 targeting ADC |
|
2 nd -line HER2+ gastric cancer |
|
(PP) |
|
H2 2025 |
|
|
Enhertu DESTINY-Lung04 |
|
HER2 targeting ADC |
|
1 st -line HER2m NSCLC |
|
(PP) |
|
H2 2025 |
|
|
Enhertu DESTINY-PanTumor03 (China) |
|
HER2 targeting ADC |
|
HER2 expressing solid tumours |
|
(PP) Phase II LCM |
|
H2 2025 |
|
|
Enhertu DESTINY-PanTumour01 |
|
HER2 targeting ADC |
|
HER2 mutant tumours |
|
(PP) Phase II LCM |
|
|
|
|
Enhertu DESTINY-PanTumour02 |
|
HER2 targeting ADC |
|
HER2 expressing solid tumours |
|
(PP) Phase II LCM |
|
Launched |
|
|
Imfinzi (platform) BEGONIA |
|
PD-L1 mAb with paclitaxel and multiple novel oncology therapies |
|
1 st -line metastatic triple negative breast cancer |
|
Phase II LCM |
|
|
|
|
Imfinzi (platform) HUDSON |
|
PD-L1 mAb + multiple novel oncology therapies |
|
post IO NSCLC |
|
Phase II LCM |
|
|
|
|
Imfinzi (platform) NeoCOAST-2 |
|
PD-L1 mAb + multiple novel oncology therapies |
|
non-small cell lung cancer |
|
(PP) |
|
|
|
|
Imfinzi + CRT KUNLUN |
|
PD-L1 mAb + CRT |
|
locally advanced oesophageal squamous cell carcinoma |
|
|
2026 |
|
|
|
Imfinzi + CRT PACIFIC-5 (China) |
|
PD-L1 mAb + CRT |
|
locally-advanced (Stage III) NSCLC |
|
(PP) |
|
Q3 2024 |
|
|
Imfinzi + CTx neoadjuvant AEGEAN |
|
PD-L1 mAb + CTx |
|
locally-advanced (Stage II-III) NSCLC |
|
|
|
Launched |
|
|
Imfinzi + CTx NIAGARA |
|
PD-L1 mAb + CTx |
|
muscle invasive bladder cancer |
|
|
|
Submitted |
|
|
Imfinzi + domvanalimab (AB154) PACIFIC-8 |
|
PD-L1 mAb + TIGIT |
|
unresectable Stage III NSCLC |
|
(PP) |
|
>2026 |
|
|
Imfinzi + EV +/- Imjudo VOLGA |
|
PD-L1 + nectin-4 targeting ADC +/- CTLA-4 |
|
muscle invasive bladder cancer |
|
|
|
H2 2025 |
|
|
Imfinzi + FLOT MATTERHORN |
|
PD-L1 mAb + CTx |
|
neoadjuvant/adjuvant gastric cancer |
|
(PP) |
|
H2 2025 |
|
|
Imfinzi + Imjudo +SoC NILE |
|
PL-L1 mAb + CTLA-4 mAb + SoC |
|
1 st -line urothelial cancer |
|
|
|
H2 2025 |
|
|
Imfinzi + Imjudo + TACE +/- lenvatinib EMERALD-3 |
|
PD-L1 + CTLA-4 + VEGF +/- chemoembolisation |
|
locoregional hepatocellular carcinoma |
|
|
|
2026 |
|
|
Imfinzi + VEGF + TACE EMERALD-1 |
|
PD-L1 mAb + VEGF + TACE |
|
locoregional hepatocellular carcinoma |
|
(PP) |
|
Q4 2023 |
|
|
Imfinzi + VEGF EMERALD-2 |
|
PD-L1 mAb + VEGF |
|
adjuvant hepatocellular carcinoma |
|
(PP) |
|
2026 |
|
|
Imfinzi +/- Imjudo + CRT ADRIATIC |
|
PD-L1 mAb +/- CTLA-4 mAb + CRT |
|
1 st -line limited-stage SCLC |
|
(PP) |
|
Launched |
|
|
Imfinzi +/- Imjudo + CTx POSEIDON |
|
PD-L1 mAb +/- CTLA-4 mAb + CTx |
|
1 st -line NSCLC |
|
|
|
Launched |
|
18
|
Compound |
|
Mechanism |
|
Area Under
|
|
Additional
|
|
Data read-out/submission
|
|
|---|---|---|---|---|---|---|---|---|---|
|
|
|
|
|
|
|
|
|
|
|
|
Imfinzi post-SBRT PACIFIC-4 |
|
PD-L1 mAb post-SBRT |
|
Stage I/II NSCLC |
|
(PP) |
|
2026 |
|
|
Imfinzi POTOMAC |
|
PD-L1 mAb |
|
non-muscle invasive bladder cancer |
|
|
|
H2 2025 |
|
|
Lynparza +abiraterone PROpel |
|
PARP inhibitor + NHA |
|
prostate cancer |
|
(PP) |
|
Launched |
|
|
Lynparza + Imfinzi + bevacizumab DUO-O |
|
PARP inhibitor + PD-L1 mAb + VEGF inhibitor |
|
1 st -line ovarian cancer |
|
( PP) |
|
Q2 2023 |
|
|
Lynparza + Imfinzi DUO-E |
|
PARP inhibitor + PD-L1 mAb |
|
1 st -line endometrial cancer |
|
(PP) |
|
Launched |
|
|
Lynparza MONO-OLA1 |
|
PARP inhibitor |
|
1 st -line BRCAwt ovarian cancer |
|
(PP) |
|
H1 2025 |
|
|
Orpathys + Imfinzi SAMETA |
|
MET inhibitor + PD-L1 mAb |
|
1 st -line papillary renal cell carcinoma |
|
(PP) |
|
H2 2025 |
|
|
Tagrisso + Orpathys SAFFRON |
|
EGFR inhibitor + MET inhibitor |
|
advanced EGFRm NSCLC |
|
(PP) |
|
H2 2025 |
|
|
Tagrisso + Orpathys SAVANNAH |
|
EGFR inhibitor + MET inhibitor |
|
advanced EGFRm NSCLC |
|
(PP) Phase II LCM |
|
|
|
|
Tagrisso +/- CTx neoadjuvant NeoADAURA |
|
EGFR inhibitor +/- CTx |
|
Stage II/III resectable EGFRm NSCLC |
|
|
|
Q4 2024 |
|
|
Tagrisso ADAURA2 |
|
EGFR inhibitor |
|
adjuvant EGFRm NSCLC Stage Ia2-Ia3 following complete tumour resection |
|
|
|
>2026 |
|
|
Tagrisso LAURA |
|
EGFR inhibitor |
|
Stage III EGFRm non-small cell lung cancer |
|
|
|
Launched |
|
|
Tagrisso ORCHARD platform study |
|
EGFR inhibitor + multiple novel oncology therapies |
|
2 nd -line EGFRm osimertinib-resistant NSCLC |
|
(PP) Phase II LCM |
|
|
|
|
Truqap |
|
AKT inhibitor |
|
prostate cancer |
|
Phase II LCM |
|
|
|
|
Truqap + abiraterone CAPItello-281 |
|
AKT inhibitor + abiraterone |
|
PTEN deficient metastatic hormone sensitive prostate cancer |
|
|
|
Q4 2024 |
|
|
Truqap + docetaxel CAPItello-280 |
|
AKT inhibitor + docetaxel |
|
mCRPC prostate cancer |
|
|
|
2026 |
|
|
Truqap + Faslodex + palbociclib CAPItello-292 |
|
AKT inhibitor + fulvestrant + CDK4/6 inhibitor |
|
1 st -line triplet in early relapse/ET resistant locally advanced (inoperable) or metastatic breast cancer |
|
Phase Ib/III |
|
>2026 |
|
|
CVRM |
|
|
|
|
|
|
|
|
|
|
Wainua |
|
ligand-conjugated antisense |
|
patients with hereditary or wild-type transthyretin-mediated amyloid cardiomyopathy (ATTR CM) |
|
(PP) |
|
2026 |
|
|
Respiratory & Immunology |
|
|
|
|
|
|
|
|
|
|
Breztri / Trixeo (PT010) KALOS LOGOS |
|
LABA/LAMA/ICS |
|
asthma |
|
Breztri in Japan, China and the US . Trixeo in the EU. |
|
H1 2025 |
|
|
Breztri / Trixeo ATHLOS |
|
LABA/LAMA/ICS |
|
COPD cardiopulmonary exercise test (CPET) trial |
|
|
|
H2 2025 |
|
|
Breztri / Trixeo THARROS |
|
LABA/LAMA/ICS |
|
cardiopulmonary outcomes trial in COPD |
|
(PP) |
|
>2026 |
|
|
Fasenra MANDARA |
|
IL-5R mAb |
|
eosinophilic granulomatosis with polyangiitis |
|
|
|
Launched |
|
|
Fasenra NATRON |
|
IL-5R mAb |
|
hypereosinophilic syndrome |
|
|
|
H1 2025 |
|
|
Fasenra RESOLUTE |
|
IL-5R mAb |
|
chronic obstructive pulmonary disease |
|
(PP) |
|
H2 2025 |
|
|
Saphnelo DAISY |
|
type I IFN receptor mAb |
|
systemic sclerosis |
|
(PP) |
|
2026 |
|
|
Saphnelo IRIS |
|
type I IFN receptor mAb |
|
lupus nephritis |
|
(PP) |
|
2026 |
|
|
Saphnelo JASMINE |
|
type I IFN receptor mAb |
|
myositis |
|
(PP) |
|
>2026 |
|
|
Saphnelo LAVENDER |
|
type I IFN receptor mAb |
|
CLE |
|
(PP) |
|
>2026 |
|
|
Saphnelo TULIP-SC |
|
type I IFN receptor mAb |
|
systemic lupus erythematosus (subcutaneous) |
|
(PP) |
|
H2 2025 |
|
|
Tezspire COURSE |
|
TSLP mAb |
|
chronic obstructive pulmonary disease |
|
(PP) Phase II LCM |
|
|
|
|
Tezspire CROSSING |
|
TSLP mAb |
|
eosinophilic oesophagitis |
|
(PP) |
|
2026 |
|
|
Tezspire WAYPOINT |
|
TSLP mAb |
|
nasal polyps |
|
(PP) |
|
Q4 2024 |
|
|
Rare Disease |
|
|
|
|
|
|
|
|
|
|
Koselugo KOMET |
|
MEK inhibitor |
|
neurofibromatosis type 1 adult |
|
(PP) |
|
Submitted |
|
|
Ultomiris |
|
anti-complement C5 mAb |
|
generalised myasthenia gravis |
|
|
|
Launched |
|
|
Ultomiris |
|
anti-complement C5 mAb |
|
proliferative lupus nephritis |
|
Phase II LCM |
|
|
|
|
Ultomiris |
|
anti-complement C5 mAb |
|
haematopoietic stem cell transplant–associated thrombotic microangiopathy |
|
|
|
H2 2025 |
|
|
Ultomiris ARTEMIS |
|
anti-complement C5 mAb |
|
cardiac surgery-associated acute kidney injury |
|
|
|
2026 |
|
|
Ultomiris CHAMPION-NMOSD |
|
anti-complement C5 mAb |
|
neuromyelitis optica spectrum disorder |
|
|
|
Launched |
|
|
Ultomiris I CAN |
|
anti-complement C5 mAb |
|
immunoglobulin A nephropathy |
|
|
|
>2026 |
|
19
Patent Expiries of Key Marketed Products as at February 6, 2025
Patents covering our products are, or may be, challenged by third parties. Generic products may be launched ‘at risk’ and our patents may be revoked, circumvented or found not to be infringed. Details of material challenges by third parties can be found in “Financial Statements—Notes to the Group Financial Statements—Note 30—Commitments, contingent liabilities and contingent assets” on pages 205 to 206 of AstraZeneca’s “Annual Report and Form 20-F Information 2024” included as exhibit 15.1 to this Form 20-F dated February 18, 2025, and incorporated by reference. The expiry dates shown below include granted Supplementary Protection Certificate (“SPC”) and Patent Term Extension (“PTE”) and/or Paediatric Exclusivity periods (as appropriate). In Europe, the exact SPC situation may vary by country as different patent offices grant SPCs at different rates. The expiry dates of relevant regulatory data exclusivity periods are not represented in the table below. A number of our products are subject to generic competition in one or more markets. There may be agreements permitting generic or biosimilar entry prior to the expiry dates shown below. Bolded expiry dates relate to new molecular entity patents. The remaining dates relate to other patents.
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Aggregate Product |
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US |
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Sales Ex-US |
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Product Sales ($m) |
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($m) |
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Key Marketed products |
|
Description |
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US |
|
China |
|
EU 1 |
|
Japan |
|
2024 |
|
2023 |
|
2022 |
|
2024 |
|
2023 |
|
2022 |
|
Oncology |
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Calquence (acalabrutinib) |
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A selective inhibitor of Bruton’s tyrosine kinase indicated for the treatment of chronic lymphocytic leukaemia (CLL) and mantle cell lymphoma (MCL) and in development for the treatment of multiple B-cell malignancies. |
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2026–2032 , 2032–2036 |
|
2032 , 2036 |
|
2032-2035 , 2036 |
2 |
2037 , 2036 |
|
2,190 |
|
1,815 |
|
1,657 |
|
939 |
|
699 |
|
400 |
|
Datroway (Datopotama deruxtecan) |
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A TROP2-directed antibody drug conjugate (ADC) comprised of a humanised anti-TROP2 IgG1 monoclonal antibody attached to a number of topoisomerase I inhibitor payloads (an exatecan derivative, DXd) via tetrapeptide-based cleavable linkers, indicated for patients with previously treated metastatic HR-positive, HER2-negative breast cancer. |
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2034 |
|
2034 |
|
2034 |
|
|
3 |
— |
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— |
|
— |
|
— |
|
— |
|
— |
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Enhertu 4 (trastuzumab deruxtecan) |
|
A HER2-directed ADC indicated for HER2-positive, HER2-low and HER2-ultralow advanced breast cancers, for HER2-mutant metastatic non-small cell lung cancer (NSCLC), and for HER2-positive advanced gastric cancer. |
|
2033 , 2035 |
|
2033-2035 |
|
2033-2035 |
|
|
3 |
— |
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— |
|
— |
|
545 |
|
261 |
|
79 |
|
Imfinzi (durvalumab) |
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A human monoclonal antibody (mAb) that blocks PD-1 and CD80 on T-cells indicated for unresectable, Stage III NSCLC, for extensive-stage small cell lung cancer (SCLC) in combination with chemotherapy, for advanced biliary tract cancer in combination with chemotherapy, for unresectable heptatocellular carcinoma (uHCC) in combination with Imjudo , for NSCLC in combination with Imjudo and chemotherapy, and for advanced bladder cancer. |
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2031 |
|
2030 |
|
2030 |
|
2033 |
|
2,603 |
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2,171 |
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1,539 |
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2,114 |
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1,848 |
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1,232 |
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Imjudo 5 (tremelimumab) |
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A cytotoxic T-lymphocyte-associated antigen 4 blocking antibody indicated for uHCC in combination with Imfinzi and for NSCLC in combination with Imfinzi and chemotherapy. |
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2031 |
|
2026 |
|
2026 |
|
2031 |
|
180 |
|
146 |
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13 |
|
101 |
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72 |
|
— |
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Lynparza 6 (olaparib) |
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An oral poly ADP-ribose polymerase (PARP) inhibitor indicated for platinum-sensitive relapsed and for BRCA-mutated (BRCAm) ovarian cancers, for homologous recombination repair deficient (HRD)-positive advanced ovarian cancer in combination with bevacizumab, for gBRCAm, HER2-negative early and metastatic breast cancers, for gBRCAm metastatic pancreatic cancer, for HRR gene-mutated and BRCAm metastatic castration-resistant prostate cancers (mCRPC), and for 1st-line mCRPC in combination with abiraterone. |
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2024 , 2027 , 2024-2041 |
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2024 , 2024-2029 |
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2029 , 2024-2029 |
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2029 , 2024-2034 |
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1,332 |
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1,254 |
|
1,226 |
|
1,740 |
|
1,557 |
|
1,412 |
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Orpathys (savolitinib) |
|
An oral, potent and highly selective MET-TKI indicated for NSCLC with MET gene alterations. |
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2030 |
|
2030 |
|
2030 |
|
2030 |
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— |
|
— |
|
— |
|
44 |
|
44 |
|
33 |
|
Tagrisso (osimertinib) |
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An EGFR-TKI indicated for early- and late-stage EGFRm NSCLC. |
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2032 , 2035 |
|
2032 , 2035 |
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2032 , 2035 |
|
2034 , 2035 |
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2,763 |
|
2,276 |
|
2,007 |
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3,817 |
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3,523 |
|
3,437 |
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Truqap (capivasertib) |
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A first-in-class, potent, adenosine triphosphate (ATP)-competitive inhibitor approved in combination with Faslodex for HR-positive, HER2-negative advanced breast cancer with certain gene alterations. |
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2028-2030 , 2025-2033 |
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2028 , 2033 |
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2028 , 2025-2033 |
|
2028 |
|
408 |
|
6 |
|
— |
|
22 |
|
— |
|
— |
|
CVRM |
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Andexxa / Ondexxya (andexanet alfa) |
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A factor Xa inhibitor (apixaban and rivaroxaban) reversal agent. |
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2032 , 2028–2037 |
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2028 , 2030–2035 |
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2028 , 2030–2037 |
|
2028 , 2030–2037 |
|
81 |
|
75 |
|
77 |
|
138 |
|
107 |
|
73 |
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Brilinta / Brilique (ticagrelor) |
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An oral P2Y12 platelet inhibitor for acute coronary syndromes (ACS) (ticagrelor 90mg) or continuation therapy in high-risk patients (ticagrelor 60mg) with a history of myocardial infarction (MI). An oral P2Y12 platelet inhibitor for the prevention of atherothrombotic events in adult patients with ACS or high-risk patients with history of MI, high-risk patients with coronary artery disease or stroke. |
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2025 , 2030-2036 |
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2037 |
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2025 , 2037 |
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2024 , 2025-2030 |
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751 |
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744 |
|
744 |
|
582 |
|
580 |
|
614 |
20
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Aggregate Product |
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US |
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Sales Ex-US |
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Product Sales ($m) |
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($m) |
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Key Marketed products |
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Description |
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US |
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China |
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EU 1 |
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Japan |
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2024 |
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2023 |
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2022 |
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2024 |
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2023 |
|
2022 |
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Farxiga / Forxiga (dapagliflozin) |
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A sodium-glucose cotransporter 2 (SGLT-2 inhibitor) indicated for adult patients with type-2 diabetes (T2D) or in adults with or without T2D with heart failure with reduced ejection fraction or chronic kidney disease (CKD). Approved in the United States to improve glycaemic control in paediatric patients with T2D aged 10 years and older. |
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2026 , 2025-2040 |
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2027-2041 |
7 |
2028 , 2027, 2028 |
2 |
2024-2025 , 2028-2040 |
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1,750 |
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1,451 |
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1,071 |
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5,906 |
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4,512 |
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3,310 |
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Xigduo/ Xigduo XR 8 (dapagliflozin/ metformin) |
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Combines dapagliflozin and metformin as either Xigduo – to improve glycaemic control in adults with T2D who are inadequately controlled on metformin alone, or Xigduo XR – an extended release tablet for adults with T2D who are inadequately controlled on metformin alone. |
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2026 , 2027-2030 |
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2027, 2030 |
7 |
2028 , 2027 2 , 2030 |
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2024-2025 , 2027-2030 |
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— |
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— |
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— |
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— |
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— |
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— |
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Lokelma (sodium zirconium cyclosilicate) |
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An insoluble, non-absorbed sodium zirconium cyclosilicate, formulated as a powder for oral suspension, that acts as a highly selective potassium-removing agent for the treatment of hyperkalaemia. |
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2032-2035 |
|
2033-2034 |
7 |
2032 |
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2035-2037 |
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256 |
|
214 |
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170 |
|
286 |
|
198 |
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119 |
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Roxadustat 9 |
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An oral hypoxia-inducible factor prolyl hydroxylase inhibitor indicated for the treatment of anaemia from CKD. |
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|
3 |
2024 , 2024-2033 |
|
|
3 |
|
3 |
— |
|
— |
|
— |
|
331 |
|
271 |
|
197 |
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Wainua/ Wainzua (eplontersen) |
|
Wainua injection, for subcutaneous use, is a prescription medicine used to treat adults with polyneuropathy of hereditary transthyretin-mediated amyloidosis. |
|
2025-2034 |
|
2034 |
|
2034 |
|
2034 |
|
85 |
|
— |
|
— |
|
— |
|
— |
|
— |
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Respiratory & Immunology |
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Airsupra (albuterol/budesonide) |
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A first-in-class, fixed-dose combination rescue medication for asthma in the United States containing a short-acting beta2-agonist (SABA) and an anti-inflammatory inhaled corticosteroid (ICS), for the as-needed treatment or prevention of bronchoconstriction and to reduce the risk of exacerbations, developed in a pressurized metered-dose inhaler (pMDI) using AstraZeneca’s Aerosphere delivery technology. |
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2030 |
|
2030 |
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|
|
2030 |
|
66 |
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— |
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— |
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— |
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— |
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— |
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Breztri / Trixeo Aerosphere (budesonide/ glycopyrrolate/formoterol) |
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A fixed-dose triple combination of an ICS, a long-acting muscarinic antagonist (LAMA) and a long-acting beta2-agonist (LABA) delivered in an Aerospace pMDI, used for the long-term maintenance treatment of COPD. |
|
2030-2031, 2038 |
|
2030, 2038 |
|
2030, 2038 |
|
2030-2034, 2038 |
|
516 |
|
383 |
|
239 |
|
462 |
|
294 |
|
159 |
|
Fasenra (benralizumab) |
|
A mAb which directly targets and depletes eosinophils by recruiting natural killer cells and inducing apoptosis (programmed cell death). Approved as an add-on maintenance treatment for severe eosinophilic asthma and for eosinophilic granulomatosis with polyangiitis (EGPA). |
|
2024 , 2028-2034 |
|
2028 |
|
2025 , 2028-2034 |
|
2025 , 2034 |
|
1,049 |
|
992 |
|
906 |
|
640 |
|
561 |
|
490 |
|
Saphnelo (anifrolumab) |
|
A first-in-class fully human mAb for moderate to severe systemic lupus erythematosus (SLE) that binds to subunit 1 of the type I IFN receptor, blocking the activity of type I IFNs. Type I IFNs such as IFN-alpha, IFN-beta and IFN-kappa are cytokines involved in driving the inflammatory pathways implicated in SLE. |
|
2025-2029 , 2033-2036 |
|
2025-2029 |
|
2025-2029 , 2036 |
|
2030-2034 , 2033-2036 |
|
425 |
|
260 |
|
111 |
|
49 |
|
20 |
|
5 |
|
Symbicort (budesonide/ formoterol) |
|
A combination of an ICS and a fast-onset LABA to treat asthma and/or COPD either as Symbicort Turbuhaler or Symbicort pMDI. |
|
2025- 2029 |
10 |
expired |
|
expired |
|
expired |
|
1,187 |
|
726 |
|
973 |
|
1,692 |
|
1,636 |
|
1,565 |
|
Tezspire 11 (tezepelumab) |
|
A first-in-class human mAb that inhibits the action of TSLP, a key epithelial cytokine that sits at the top of multiple inflammatory cascades and is critical in the initiation and persistence of airway inflammation and airway hyperresponsiveness in severe asthma. Approved for a broad population of severe asthma patients, without phenotype and biomarker limitation. Developed in collaboration with Amgen. |
|
2028 , 2038 |
|
2028 |
|
2028 |
|
2028 , 2038 |
|
— |
|
— |
|
— |
|
248 |
|
86 |
|
4 |
|
Vaccines & Immune Therapies |
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|
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|
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|
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Beyfortus 12 (nirsevimab) |
|
A long-acting anti-RSV F mAb used to prevent RSV lower respiratory tract disease in neonates and infants during their first RSV season. Jointly developed and commercialised with Sanofi. |
|
2028–2035 , 2038-2040 |
|
2038 |
|
2035 |
|
2035 , 2038 |
|
232 |
|
87 |
|
— |
|
86 |
|
19 |
|
— |
|
FluMist (live attenuated influenza vaccine) |
|
A live attenuated vaccine indicated for active immunisation for the prevention of influenza disease caused by influenza A subtype viruses and type B viruses contained in the vaccine. |
|
2025-2026 |
|
2025 |
|
2025 |
|
2025 |
13 |
28 |
|
23 |
|
21 |
|
230 |
|
193 |
|
154 |
21
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Aggregate Product |
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US |
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Sales Ex-US |
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Product Sales ($m) |
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($m) |
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|
Key Marketed products |
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Description |
|
US |
|
China |
|
EU 1 |
|
Japan |
|
2024 |
|
2023 |
|
2022 |
|
2024 |
|
2023 |
|
2022 |
|
Rare Disease |
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Kanuma (sebelipase alfa) |
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A recombinant form of the human lysosomal acid lipase (LAL). The enzyme replacement therapy is for the treatment of LAL deficiency. |
|
2031 |
|
2031 |
|
2031 , 2026-2037 |
|
2031 , 2032 |
|
100 |
|
85 |
|
77 |
|
109 |
|
86 |
|
83 |
|
Koselugo 14 (selumetinib) |
|
A kinase inhibitor that blocks specific enzymes (MEK1 and MEK2) for the treatment of patients with neurofibromatosis type 1 who have symptomatic, inoperable plexiform neurofibromas. |
|
2028 15 , 2026-2029 |
|
2026-2029 |
|
2026-2029 |
|
2029-2031 |
|
212 |
|
195 |
|
162 |
|
319 |
|
136 |
|
46 |
|
Soliris (eculizumab) |
|
A C5 complement inhibitor for the treatment of paroxysmal nocturnal haemoglobinuria, atypical haemolytic uraemic syndrome, generalised myasthenia gravis and neuromyelitis optica spectrum disorder. |
|
2027 16 , 2025-2032 |
|
2029 |
|
2027 , 2029 |
|
2027 , 2029 |
|
1,523 |
|
1,734 |
|
2,180 |
|
1,065 |
|
1,411 |
|
1,582 |
|
Strensiq (asfotase alfa) |
|
A targeted enzyme replacement therapy for patients with hypophosphatasia. |
|
2025-2029 , 2035-2038 |
|
|
|
2025-2031 , 2036 |
|
2028 , 2035-2036 |
|
1,167 |
|
937 |
|
769 |
|
249 |
|
215 |
|
189 |
|
Ultomiris (ravulizumab) |
|
A long-acting C5 complement inhibitor for the treatment of paroxysmal nocturnal haemoglobinuria (PNH), atypical haemolytic uraemic syndrome (aHUS), generalised myasthenia gravis (gMG) and neuromyelitis optica spectrum disorder (NMOSD). |
|
2035 , 2038 |
|
2035, 2038 |
|
2035, 2038-2040 |
|
2038 , 2038 |
|
2,261 |
|
1,750 |
|
1,136 |
|
1,663 |
|
1,251 |
|
829 |
|
Voydeya 17 (danicopan) |
|
A first-in-class oral, Factor D complement inhibitor for certain adults with PNH as add-on therapy to ravulizumab or eculizumab. |
|
2035 , 2038 |
|
2035 |
|
2035 |
|
2035 |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
Notes
Crestor, Nexium, Pulmicort, Seloken, Synagis and Zoladex are key marketed products which have lost patent protection in all major markets.
| 1 | Expiry in major EU markets, which includes the United Kingdom. |
| 2 | The patent is the subject of a pending opposition proceeding at the European Patent Office (EPO). |
| 3 | AstraZeneca does not have commercialisation rights. |
| 4 | AstraZeneca has recorded $1,437 million of Alliance Revenue in relation to this product in 2024 (2023: $1,022 million; 2022: $523 million), as per the “Financial Statements—Notes to the Group Financial Statements—Note 1—Revenue” on pages 160 to 161 of AstraZeneca’s “Annual Report and Form 20-F Information 2024” included as exhibit 15.1 to this Form 20-F dated February 18, 2025. |
| 5 | Prior to 2024, Imjudo Product Sales are included in the Imfinzi Product Sales figure included in “Financial Statements—Notes to the Group Financial Statements—Note 1—Revenue” on pages 160 to 161 of AstraZeneca’s “Annual Report and Form 20-F Information 2024” included as exhibit 15.1 to this Form 20-F dated February 18, 2025. |
| 6 | In addition to any Product Sales, AstraZeneca has also recorded $600 million of Collaboration Revenue in relation to this product in 2024 (2023: $245 million; 2022: $355 million), as per “Financial Statements—Notes to the Group Financial Statements—Note 1—Revenue” on pages 160 to 161 of AstraZeneca’s “Annual Report and Form 20-F Information 2024” included as exhibit 15.1 to this Form 20-F dated February 18, 2025. |
| 7 | The patent is the subject of a pending invalidation proceeding at China National Intellectual Property Administration. |
| 8 | Xigduo/Xigduo XR revenues are combined with Farxiga/Forxiga . Comparative revenues for years 2023 and 2022 have been revised to reflect this change. |
| 9 | AstraZeneca has recorded $6 million of Alliance Revenue in relation to this product in 2024 (2023: $5 million; 2022: $5 million), as per “Financial Statements—Notes to the Group Financial Statements—Note 1—Revenue” on pages 160 to 161 of AstraZeneca’s “Annual Report and Form 20-F Information 2024” included as exhibit 15.1 to this Form 20-F dated February 18, 2025. |
| 10 | Patent expiry information relates to the Symbicort pMDI product, including any granted Paediatric Exclusivity term. |
| 11 | AstraZeneca has recorded $436 million of Alliance Revenue in relation to this product in 2024 (2023: $259 million; 2022: $79 million), as per “Financial Statements—Notes to the Group Financial Statements—Note 1—Revenue” on pages 160 to 161 of AstraZeneca’s “Annual Report and Form 20-F Information 2024” included as exhibit 15.1 to this Form 20-F dated February 18, 2025. |
| 12 | AstraZeneca has recorded $237 million of Alliance Revenue in relation to this product in 2024 (2023: $57 million; 2022: $nil), as per “Financial Statements—Notes to the Group Financial Statements—Note 1—Revenue” on pages 160 to 161 of AstraZeneca’s “Annual Report and Form 20-F Information 2024” included as exhibit 15.1 to this Form 20-F dated February 18, 2025. |
| 13 | Rights licensed to Daiichi Sankyo, Inc. |
| 14 | In addition to any Product Sales, AstraZeneca also has recorded $100 million of Collaboration Revenue in relation to this product in 2024 (2023: $nil; 2022: $nil), as per “Financial Statements—Notes to the Group Financial Statements—Note 1—Revenue” on pages 160 to 161 of AstraZeneca’s “Annual Report and Form 20-F Information 2024” included as exhibit 15.1 to this Form 20-F dated February 18, 2024. |
| 15 | Date represents expiry of a pending SPC/PTE and/or Paediatric Exclusivity period. |
| 16 | Settled with Amgen and Samsung Bioepis for licensed biosimilar entry date of March 1, 2025. |
| 17 | Voydeya revenues are combined with Ultomiris . |
22
Geographical Review
This section Item 4—“Information on the Company—Business Overview—Geographical Review” should be read in conjunction with Item 5—“Operating and Financial Review and Prospects—Operating Results” below.
|
|
|
World |
|
US |
|
Emerging Markets |
|
Europe |
|
Established ROW |
||||||||||||||||||
|
|
|
Sales |
|
Actual |
|
CER |
|
Sales |
|
Actual |
|
Sales |
|
Actual |
|
CER |
|
Sales |
|
Actual |
|
CER |
|
Sales |
|
Actual |
|
CER |
|
2024 |
|
$m |
|
% |
|
% |
|
$m |
|
% |
|
$m |
|
% |
|
% |
|
$m |
|
% |
|
% |
|
$m |
|
% |
|
% |
|
Oncology: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tagrisso |
|
6,580 |
|
13 |
|
16 |
|
2,763 |
|
21 |
|
1,755 |
|
8 |
|
16 |
|
1,301 |
|
16 |
|
15 |
|
761 |
|
(3) |
|
4 |
|
Imfinzi |
|
4,717 |
|
17 |
|
21 |
|
2,603 |
|
20 |
|
479 |
|
35 |
|
59 |
|
948 |
|
28 |
|
27 |
|
687 |
|
(8) |
|
(2) |
|
Calquence |
|
3,129 |
|
24 |
|
25 |
|
2,190 |
|
21 |
|
153 |
|
56 |
|
79 |
|
656 |
|
33 |
|
32 |
|
130 |
|
20 |
|
22 |
|
Lynparza |
|
3,072 |
|
9 |
|
11 |
|
1,332 |
|
6 |
|
655 |
|
21 |
|
30 |
|
832 |
|
13 |
|
12 |
|
253 |
|
(10) |
|
(5) |
|
Enhertu |
|
545 |
|
n/m |
|
n/m |
|
— |
|
— |
|
350 |
|
n/m |
|
n/m |
|
126 |
|
n/m |
|
n/m |
|
69 |
|
n/m |
|
n/m |
|
Zoladex |
|
1,058 |
|
11 |
|
17 |
|
16 |
|
14 |
|
795 |
|
16 |
|
23 |
|
148 |
|
12 |
|
10 |
|
99 |
|
(16) |
|
(12) |
|
Imjudo |
|
281 |
|
29 |
|
31 |
|
180 |
|
23 |
|
16 |
|
n/m |
|
n/m |
|
36 |
|
n/m |
|
n/m |
|
49 |
|
(5) |
|
2 |
|
Truqap |
|
430 |
|
n/m |
|
n/m |
|
408 |
|
n/m |
|
2 |
|
n/m |
|
n/m |
|
12 |
|
n/m |
|
n/m |
|
8 |
|
n/m |
|
n/m |
|
Orpathys |
|
44 |
|
(1) |
|
1 |
|
— |
|
— |
|
44 |
|
(1) |
|
1 |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
Others |
|
419 |
|
(19) |
|
(14) |
|
18 |
|
(51) |
|
253 |
|
(18) |
|
(12) |
|
23 |
|
(30) |
|
(30) |
|
125 |
|
(13) |
|
(6) |
|
Total Oncology |
|
20,275 |
|
18 |
|
21 |
|
9,510 |
|
23 |
|
4,502 |
|
18 |
|
28 |
|
4,082 |
|
23 |
|
22 |
|
2,181 |
|
(4) |
|
2 |
|
BioPharmaceuticals: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CVRM |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Farxiga |
|
7,656 |
|
28 |
|
31 |
|
1,750 |
|
21 |
|
2,853 |
|
29 |
|
35 |
|
2,634 |
|
40 |
|
39 |
|
419 |
|
— |
|
6 |
|
Brilinta |
|
1,333 |
|
1 |
|
2 |
|
751 |
|
1 |
|
294 |
|
3 |
|
10 |
|
268 |
|
(1) |
|
(2) |
|
20 |
|
(17) |
|
(16) |
|
Crestor |
|
1,153 |
|
4 |
|
8 |
|
46 |
|
(16) |
|
934 |
|
8 |
|
12 |
|
37 |
|
(29) |
|
(30) |
|
136 |
|
(2) |
|
5 |
|
Seloken / Toprol-XL |
|
605 |
|
(5) |
|
— |
|
— |
|
(42) |
|
589 |
|
(5) |
|
— |
|
13 |
|
13 |
|
12 |
|
3 |
|
(53) |
|
(44) |
|
Lokelma |
|
542 |
|
32 |
|
34 |
|
256 |
|
20 |
|
86 |
|
73 |
|
79 |
|
92 |
|
59 |
|
58 |
|
108 |
|
20 |
|
29 |
|
Roxadustat |
|
331 |
|
22 |
|
24 |
|
— |
|
— |
|
331 |
|
22 |
|
24 |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
Andexxa |
|
219 |
|
20 |
|
22 |
|
81 |
|
7 |
|
3 |
|
n/m |
|
n/m |
|
80 |
|
30 |
|
28 |
|
55 |
|
22 |
|
31 |
|
Wainua |
|
85 |
|
n/m |
|
n/m |
|
85 |
|
n/m |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
Others |
|
524 |
|
(24) |
|
(22) |
|
106 |
|
(50) |
|
249 |
|
(13) |
|
(9) |
|
146 |
|
(13) |
|
(12) |
|
23 |
|
18 |
|
20 |
|
Total CVRM |
|
12,448 |
|
18 |
|
20 |
|
3,075 |
|
12 |
|
5,339 |
|
16 |
|
22 |
|
3,270 |
|
31 |
|
30 |
|
764 |
|
3 |
|
9 |
|
BioPharmaceuticals: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Respiratory & Immunology |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Symbicort |
|
2,879 |
|
22 |
|
25 |
|
1,187 |
|
63 |
|
805 |
|
7 |
|
16 |
|
559 |
|
2 |
|
1 |
|
328 |
|
(2) |
|
— |
|
Fasenra |
|
1,689 |
|
9 |
|
9 |
|
1,049 |
|
6 |
|
92 |
|
44 |
|
55 |
|
404 |
|
14 |
|
13 |
|
144 |
|
1 |
|
6 |
|
Pulmicort |
|
682 |
|
(4) |
|
(1) |
|
6 |
|
(77) |
|
568 |
|
(1) |
|
3 |
|
71 |
|
5 |
|
3 |
|
37 |
|
(12) |
|
(10) |
|
Breztri |
|
978 |
|
44 |
|
46 |
|
516 |
|
35 |
|
245 |
|
52 |
|
57 |
|
143 |
|
78 |
|
77 |
|
74 |
|
41 |
|
47 |
|
Tezspire |
|
248 |
|
n/m |
|
n/m |
|
— |
|
— |
|
11 |
|
n/m |
|
n/m |
|
156 |
|
n/m |
|
n/m |
|
81 |
|
n/m |
|
n/m |
|
Saphnelo |
|
474 |
|
69 |
|
70 |
|
425 |
|
63 |
|
7 |
|
n/m |
|
n/m |
|
26 |
|
n/m |
|
n/m |
|
16 |
|
69 |
|
80 |
|
Airsupra |
|
66 |
|
n/m |
|
n/m |
|
66 |
|
n/m |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
Others |
|
400 |
|
(8) |
|
(7) |
|
167 |
|
7 |
|
169 |
|
(21) |
|
(20) |
|
57 |
|
5 |
|
4 |
|
7 |
|
(8) |
|
(4) |
|
Total Respiratory & Immunology |
|
7,416 |
|
21 |
|
23 |
|
3,416 |
|
34 |
|
1,897 |
|
7 |
|
13 |
|
1,416 |
|
22 |
|
21 |
|
687 |
|
10 |
|
14 |
|
BioPharmaceuticals: Vaccines & Immune Therapies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Synagis |
|
447 |
|
(18) |
|
(14) |
|
(8) |
|
n/m |
|
210 |
|
8 |
|
17 |
|
116 |
|
(34) |
|
(35) |
|
129 |
|
(27) |
|
(22) |
|
Beyfortus |
|
318 |
|
n/m |
|
n/m |
|
232 |
|
n/m |
|
— |
|
n/m |
|
n/m |
|
84 |
|
n/m |
|
n/m |
|
2 |
|
n/m |
|
n/m |
|
FluMist |
|
258 |
|
19 |
|
15 |
|
28 |
|
19 |
|
1 |
|
28 |
|
30 |
|
204 |
|
8 |
|
4 |
|
25 |
|
n/m |
|
n/m |
|
COVID-19 mAbs |
|
31 |
|
(76) |
|
(76) |
|
28 |
|
n/m |
|
— |
|
n/m |
|
n/m |
|
3 |
|
(74) |
|
(75) |
|
— |
|
n/m |
|
n/m |
|
Others |
|
4 |
|
(68) |
|
(68) |
|
— |
|
— |
|
2 |
|
(82) |
|
(82) |
|
2 |
|
10 |
|
14 |
|
— |
|
n/m |
|
n/m |
|
Total Vaccines & Immune Therapies |
|
1,058 |
|
5 |
|
6 |
|
280 |
|
n/m |
|
213 |
|
1 |
|
9 |
|
409 |
|
3 |
|
1 |
|
156 |
|
(47) |
|
(44) |
|
Rare Disease: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ultomiris |
|
3,924 |
|
32 |
|
34 |
|
2,261 |
|
29 |
|
141 |
|
n/m |
|
n/m |
|
884 |
|
32 |
|
31 |
|
638 |
|
34 |
|
43 |
|
Soliris |
|
2,588 |
|
(18) |
|
(14) |
|
1,523 |
|
(12) |
|
443 |
|
4 |
|
34 |
|
416 |
|
(38) |
|
(38) |
|
206 |
|
(35) |
|
(32) |
|
Strensiq |
|
1,416 |
|
23 |
|
24 |
|
1,167 |
|
25 |
|
54 |
|
33 |
|
43 |
|
99 |
|
11 |
|
10 |
|
96 |
|
12 |
|
18 |
|
Koselugo |
|
531 |
|
60 |
|
66 |
|
212 |
|
9 |
|
177 |
|
n/m |
|
n/m |
|
103 |
|
93 |
|
92 |
|
39 |
|
62 |
|
73 |
|
Kanuma |
|
209 |
|
22 |
|
24 |
|
100 |
|
17 |
|
34 |
|
19 |
|
28 |
|
66 |
|
35 |
|
35 |
|
9 |
|
11 |
|
15 |
|
Total Rare Disease |
|
8,668 |
|
12 |
|
14 |
|
5,263 |
|
12 |
|
849 |
|
36 |
|
63 |
|
1,568 |
|
3 |
|
2 |
|
988 |
|
8 |
|
15 |
|
Other medicines |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nexium |
|
867 |
|
(8) |
|
(2) |
|
96 |
|
(16) |
|
591 |
|
2 |
|
11 |
|
60 |
|
13 |
|
11 |
|
120 |
|
(40) |
|
(36) |
|
Others |
|
206 |
|
(11) |
|
(9) |
|
15 |
|
(20) |
|
144 |
|
(6) |
|
(4) |
|
43 |
|
(17) |
|
(17) |
|
4 |
|
(44) |
|
(41) |
|
Total Other medicines |
|
1,073 |
|
(9) |
|
(4) |
|
111 |
|
(17) |
|
735 |
|
1 |
|
8 |
|
103 |
|
(2) |
|
(3) |
|
124 |
|
(40) |
|
(36) |
|
Total Product Sales |
|
50,938 |
|
16 |
|
19 |
|
21,655 |
|
21 |
|
13,535 |
|
15 |
|
23 |
|
10,848 |
|
20 |
|
19 |
|
4,900 |
|
(3) |
|
3 |
23
|
|
|
World |
|
US |
|
Emerging Markets |
|
Europe |
|
Established ROW |
||||||||||||||||||
|
|
|
Sales |
|
Actual |
|
CER |
|
Sales |
|
Actual |
|
Sales |
|
Actual |
|
CER |
|
Sales |
|
Actual |
|
CER |
|
Sales |
|
Actual |
|
CER |
|
2023 |
|
$m |
|
% |
|
% |
|
$m |
|
% |
|
$m |
|
% |
|
% |
|
$m |
|
% |
|
% |
|
$m |
|
% |
|
% |
|
Oncology: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tagrisso |
|
5,799 |
|
7 |
|
9 |
|
2,276 |
|
13 |
|
1,621 |
|
3 |
|
10 |
|
1,120 |
|
10 |
|
8 |
|
782 |
|
(8) |
|
(1) |
|
Imfinzi |
|
4,237 |
|
52 |
|
55 |
|
2,317 |
|
49 |
|
360 |
|
25 |
|
39 |
|
758 |
|
39 |
|
36 |
|
802 |
|
n/m |
|
n/m |
|
Lynparza |
|
2,811 |
|
7 |
|
9 |
|
1,254 |
|
2 |
|
542 |
|
11 |
|
21 |
|
734 |
|
12 |
|
10 |
|
281 |
|
5 |
|
12 |
|
Calquence |
|
2,514 |
|
22 |
|
23 |
|
1,815 |
|
10 |
|
98 |
|
n/m |
|
n/m |
|
493 |
|
72 |
|
69 |
|
108 |
|
58 |
|
65 |
|
Enhertu |
|
261 |
|
n/m |
|
n/m |
|
— |
|
— |
|
169 |
|
n/m |
|
n/m |
|
60 |
|
n/m |
|
n/m |
|
32 |
|
n/m |
|
n/m |
|
Orpathys |
|
44 |
|
34 |
|
42 |
|
— |
|
— |
|
44 |
|
34 |
|
42 |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
Truqap |
|
6 |
|
n/m |
|
n/m |
|
6 |
|
n/m |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
Zoladex |
|
952 |
|
3 |
|
9 |
|
14 |
|
(4) |
|
687 |
|
5 |
|
12 |
|
133 |
|
— |
|
(1) |
|
118 |
|
(4) |
|
2 |
|
Faslodex |
|
297 |
|
(11) |
|
(6) |
|
31 |
|
87 |
|
142 |
|
(11) |
|
(6) |
|
28 |
|
(49) |
|
(50) |
|
96 |
|
(7) |
|
1 |
|
Others |
|
224 |
|
(33) |
|
(30) |
|
6 |
|
(44) |
|
165 |
|
(34) |
|
(31) |
|
6 |
|
(42) |
|
(41) |
|
47 |
|
(28) |
|
(23) |
|
Total Oncology |
|
17,145 |
|
17 |
|
20 |
|
7,719 |
|
19 |
|
3,828 |
|
8 |
|
16 |
|
3,332 |
|
22 |
|
20 |
|
2,266 |
|
20 |
|
29 |
|
BioPharmaceuticals: CVRM |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Farxiga |
|
5,963 |
|
36 |
|
39 |
|
1,451 |
|
35 |
|
2,211 |
|
33 |
|
40 |
|
1,881 |
|
45 |
|
42 |
|
420 |
|
21 |
|
30 |
|
Brilinta |
|
1,324 |
|
(2) |
|
(1) |
|
744 |
|
— |
|
285 |
|
— |
|
10 |
|
271 |
|
(4) |
|
(5) |
|
24 |
|
(49) |
|
(47) |
|
Lokelma |
|
412 |
|
43 |
|
46 |
|
214 |
|
26 |
|
50 |
|
n/m |
|
n/m |
|
58 |
|
94 |
|
91 |
|
90 |
|
32 |
|
42 |
|
Roxadustat |
|
271 |
|
38 |
|
45 |
|
— |
|
— |
|
271 |
|
38 |
|
45 |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
Andexxa |
|
182 |
|
21 |
|
23 |
|
75 |
|
(2) |
|
— |
|
— |
|
— |
|
62 |
|
50 |
|
47 |
|
45 |
|
39 |
|
50 |
|
Crestor |
|
1,107 |
|
6 |
|
11 |
|
55 |
|
(16) |
|
862 |
|
9 |
|
15 |
|
52 |
|
26 |
|
25 |
|
138 |
|
(7) |
|
— |
|
Seloken/Toprol-XL |
|
640 |
|
(26) |
|
(20) |
|
1 |
|
n/m |
|
621 |
|
(26) |
|
(20) |
|
11 |
|
(18) |
|
(17) |
|
7 |
|
(23) |
|
(19) |
|
Onglyza |
|
227 |
|
(12) |
|
(8) |
|
49 |
|
(36) |
|
131 |
|
8 |
|
16 |
|
32 |
|
(16) |
|
(17) |
|
15 |
|
(30) |
|
(28) |
|
Bydureon |
|
163 |
|
(42) |
|
(42) |
|
133 |
|
(45) |
|
3 |
|
12 |
|
12 |
|
27 |
|
(24) |
|
(26) |
|
— |
|
— |
|
— |
|
Others |
|
296 |
|
(19) |
|
(17) |
|
30 |
|
(10) |
|
152 |
|
(22) |
|
(18) |
|
109 |
|
(15) |
|
(15) |
|
5 |
|
(52) |
|
(49) |
|
Total CVRM |
|
10,585 |
|
15 |
|
18 |
|
2,752 |
|
11 |
|
4,586 |
|
11 |
|
18 |
|
2,503 |
|
31 |
|
29 |
|
744 |
|
9 |
|
16 |
|
BioPharmaceuticals: Respiratory & Immunology |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Symbicort |
|
2,362 |
|
(7) |
|
(4) |
|
726 |
|
(25) |
|
753 |
|
24 |
|
33 |
|
549 |
|
(6) |
|
(7) |
|
334 |
|
(11) |
|
(7) |
|
Fasenra |
|
1,553 |
|
11 |
|
12 |
|
992 |
|
9 |
|
64 |
|
50 |
|
61 |
|
355 |
|
16 |
|
14 |
|
142 |
|
— |
|
6 |
|
Breztri |
|
677 |
|
70 |
|
73 |
|
383 |
|
60 |
|
161 |
|
75 |
|
85 |
|
81 |
|
n/m |
|
n/m |
|
52 |
|
55 |
|
66 |
|
Saphnelo |
|
280 |
|
n/m |
|
n/m |
|
260 |
|
n/m |
|
2 |
|
n/m |
|
n/m |
|
8 |
|
n/m |
|
n/m |
|
10 |
|
n/m |
|
n/m |
|
Tezspire |
|
86 |
|
n/m |
|
n/m |
|
— |
|
— |
|
1 |
|
n/m |
|
n/m |
|
48 |
|
n/m |
|
n/m |
|
37 |
|
n/m |
|
n/m |
|
Pulmicort |
|
713 |
|
11 |
|
17 |
|
28 |
|
(58) |
|
575 |
|
25 |
|
34 |
|
68 |
|
(1) |
|
(2) |
|
42 |
|
(15) |
|
(10) |
|
Bevespi |
|
58 |
|
— |
|
— |
|
34 |
|
(19) |
|
6 |
|
19 |
|
28 |
|
17 |
|
65 |
|
62 |
|
1 |
|
50 |
|
14 |
|
Daliresp |
|
54 |
|
(72) |
|
(72) |
|
42 |
|
(76) |
|
3 |
|
(7) |
|
(11) |
|
8 |
|
(9) |
|
(11) |
|
1 |
|
(48) |
|
(20) |
|
Others |
|
324 |
|
(23) |
|
(20) |
|
82 |
|
(42) |
|
206 |
|
(10) |
|
(5) |
|
30 |
|
(29) |
|
(30) |
|
6 |
|
1 |
|
5 |
|
Total Respiratory & Immunology |
|
6,107 |
|
6 |
|
8 |
|
2,547 |
|
(4) |
|
1,771 |
|
23 |
|
31 |
|
1,164 |
|
10 |
|
8 |
|
625 |
|
2 |
|
8 |
|
BioPharmaceuticals: Vaccines & Immune Therapies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COVID-19 mAbs |
|
132 |
|
(94) |
|
(93) |
|
— |
|
n/m |
|
6 |
|
(99) |
|
(99) |
|
12 |
|
(96) |
|
(96) |
|
114 |
|
(72) |
|
(68) |
|
Vaxzevria |
|
12 |
|
(99) |
|
(99) |
|
— |
|
n/m |
|
10 |
|
(99) |
|
(99) |
|
2 |
|
n/m |
|
(99) |
|
— |
|
n/m |
|
n/m |
|
Beyfortus |
|
106 |
|
n/m |
|
n/m |
|
87 |
|
n/m |
|
— |
|
— |
|
— |
|
19 |
|
n/m |
|
n/m |
|
— |
|
— |
|
— |
|
Synagis |
|
546 |
|
(6) |
|
(2) |
|
(1) |
|
n/m |
|
195 |
|
13 |
|
19 |
|
175 |
|
(18) |
|
(18) |
|
177 |
|
(7) |
|
(1) |
|
FluMist |
|
216 |
|
24 |
|
17 |
|
23 |
|
10 |
|
1 |
|
9 |
|
(2) |
|
188 |
|
25 |
|
17 |
|
4 |
|
74 |
|
80 |
|
Total Vaccines & Immune Therapies |
|
1,012 |
|
(79) |
|
(78) |
|
109 |
|
(91) |
|
212 |
|
(84) |
|
(83) |
|
396 |
|
(61) |
|
(62) |
|
295 |
|
(76) |
|
(74) |
|
Rare Disease: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Soliris |
|
3,145 |
|
(16) |
|
(14) |
|
1,734 |
|
(20) |
|
424 |
|
41 |
|
63 |
|
670 |
|
(17) |
|
(18) |
|
317 |
|
(33) |
|
(29) |
|
Ultomiris |
|
2,965 |
|
51 |
|
52 |
|
1,750 |
|
54 |
|
71 |
|
88 |
|
89 |
|
668 |
|
39 |
|
36 |
|
476 |
|
54 |
|
65 |
|
Strensiq |
|
1,152 |
|
20 |
|
21 |
|
937 |
|
22 |
|
40 |
|
15 |
|
22 |
|
89 |
|
14 |
|
11 |
|
86 |
|
13 |
|
22 |
|
Koselugo |
|
331 |
|
59 |
|
60 |
|
195 |
|
20 |
|
59 |
|
n/m |
|
n/m |
|
53 |
|
n/m |
|
n/m |
|
24 |
|
n/m |
|
n/m |
|
Kanuma |
|
171 |
|
7 |
|
8 |
|
85 |
|
10 |
|
29 |
|
(7) |
|
(1) |
|
49 |
|
12 |
|
10 |
|
8 |
|
2 |
|
9 |
|
Total Rare Disease |
|
7,764 |
|
10 |
|
12 |
|
4,701 |
|
9 |
|
623 |
|
45 |
|
62 |
|
1,529 |
|
7 |
|
5 |
|
911 |
|
5 |
|
12 |
|
Other medicines |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nexium |
|
945 |
|
(27) |
|
(22) |
|
115 |
|
(5) |
|
578 |
|
2 |
|
9 |
|
53 |
|
16 |
|
13 |
|
199 |
|
(64) |
|
(61) |
|
Others |
|
231 |
|
(32) |
|
(30) |
|
18 |
|
(22) |
|
153 |
|
(31) |
|
(28) |
|
52 |
|
(33) |
|
(32) |
|
8 |
|
(58) |
|
(55) |
|
Total Other medicines |
|
1,176 |
|
(28) |
|
(24) |
|
133 |
|
(8) |
|
731 |
|
(7) |
|
(1) |
|
105 |
|
(14) |
|
(15) |
|
207 |
|
(64) |
|
(61) |
|
Total Product Sales |
|
43,789 |
|
2 |
|
4 |
|
17,961 |
|
4 |
|
11,751 |
|
1 |
|
8 |
|
9,029 |
|
9 |
|
7 |
|
5,048 |
|
(14) |
|
(8) |
24
|
|
|
World |
|
US |
|
Emerging Markets |
|
Europe |
|
Established ROW |
||||||||||||||||||
|
|
|
Sales |
|
Actual |
|
CER |
|
Sales |
|
Actual |
|
Sales |
|
Actual |
|
CER |
|
Sales |
|
Actual |
|
CER |
|
Sales |
|
Actual |
|
CER |
|
2022 |
|
$m |
|
% |
|
% |
|
$m |
|
% |
|
$m |
|
% |
|
% |
|
$m |
|
% |
|
% |
|
$m |
|
% |
|
% |
|
Oncology: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tagrisso |
|
5,444 |
|
9 |
|
15 |
|
2,007 |
|
13 |
|
1,567 |
|
17 |
|
22 |
|
1,023 |
|
4 |
|
17 |
|
847 |
|
(7) |
|
8 |
|
Imfinzi |
|
2,784 |
|
15 |
|
21 |
|
1,552 |
|
25 |
|
287 |
|
4 |
|
7 |
|
544 |
|
12 |
|
26 |
|
401 |
|
(1) |
|
15 |
|
Lynparza |
|
2,638 |
|
12 |
|
18 |
|
1,226 |
|
13 |
|
488 |
|
27 |
|
31 |
|
655 |
|
6 |
|
19 |
|
269 |
|
4 |
|
20 |
|
Calquence |
|
2,057 |
|
66 |
|
69 |
|
1,657 |
|
52 |
|
45 |
|
n/m |
|
n/m |
|
286 |
|
n/m |
|
n/m |
|
69 |
|
n/m |
|
n/m |
|
Enhertu |
|
79 |
|
n/m |
|
n/m |
|
— |
|
— |
|
51 |
|
n/m |
|
n/m |
|
21 |
|
n/m |
|
n/m |
|
7 |
|
n/m |
|
n/m |
|
Orpathys |
|
33 |
|
n/m |
|
n/m |
|
— |
|
— |
|
33 |
|
n/m |
|
n/m |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
Zoladex |
|
927 |
|
(2) |
|
6 |
|
15 |
|
15 |
|
657 |
|
6 |
|
12 |
|
133 |
|
(10) |
|
1 |
|
122 |
|
(28) |
|
(15) |
|
Faslodex |
|
334 |
|
(22) |
|
(14) |
|
17 |
|
(45) |
|
159 |
|
(4) |
|
3 |
|
55 |
|
(52) |
|
(46) |
|
103 |
|
(15) |
|
1 |
|
Iressa |
|
114 |
|
(38) |
|
(34) |
|
9 |
|
(19) |
|
94 |
|
(38) |
|
(35) |
|
2 |
|
(52) |
|
(41) |
|
9 |
|
(44) |
|
(35) |
|
Arimidex |
|
99 |
|
(29) |
|
(24) |
|
— |
|
— |
|
76 |
|
(29) |
|
(26) |
|
— |
|
(87) |
|
(86) |
|
23 |
|
(23) |
|
(11) |
|
Casodex |
|
78 |
|
(45) |
|
(40) |
|
— |
|
— |
|
53 |
|
(50) |
|
(47) |
|
1 |
|
(49) |
|
(48) |
|
24 |
|
(31) |
|
(19) |
|
Others |
|
44 |
|
(14) |
|
(6) |
|
1 |
|
59 |
|
27 |
|
(6) |
|
1 |
|
6 |
|
(4) |
|
4 |
|
10 |
|
(36) |
|
(26) |
|
Total Oncology |
|
14,631 |
|
13 |
|
19 |
|
6,484 |
|
23 |
|
3,537 |
|
10 |
|
14 |
|
2,726 |
|
10 |
|
23 |
|
1,884 |
|
(5) |
|
10 |
|
BioPharmaceuticals: CVRM |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Farxiga |
|
4,381 |
|
46 |
|
56 |
|
1,071 |
|
46 |
|
1,665 |
|
39 |
|
47 |
|
1,297 |
|
60 |
|
81 |
|
348 |
|
32 |
|
49 |
|
Brilinta |
|
1,358 |
|
(8) |
|
(4) |
|
744 |
|
1 |
|
286 |
|
(13) |
|
(10) |
|
282 |
|
(18) |
|
(8) |
|
46 |
|
(27) |
|
(22) |
|
Lokelma |
|
289 |
|
65 |
|
75 |
|
170 |
|
47 |
|
20 |
|
n/m |
|
n/m |
|
30 |
|
n/m |
|
n/m |
|
69 |
|
55 |
|
83 |
|
Roxadustat |
|
197 |
|
13 |
|
18 |
|
— |
|
— |
|
197 |
|
13 |
|
18 |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
Andexxa |
|
150 |
|
5 |
|
14 |
|
77 |
|
(32) |
|
— |
|
— |
|
— |
|
41 |
|
41 |
|
58 |
|
32 |
|
n/m |
|
n/m |
|
Crestor |
|
1,048 |
|
(4) |
|
2 |
|
65 |
|
(19) |
|
794 |
|
2 |
|
9 |
|
41 |
|
(21) |
|
(12) |
|
148 |
|
(21) |
|
(10) |
|
Seloken / Toprol-XL |
|
862 |
|
(9) |
|
(4) |
|
— |
|
n/m |
|
839 |
|
(10) |
|
(4) |
|
14 |
|
26 |
|
27 |
|
9 |
|
(16) |
|
(13) |
|
Bydureon |
|
280 |
|
(27) |
|
(26) |
|
242 |
|
(24) |
|
3 |
|
(16) |
|
(18) |
|
35 |
|
(37) |
|
(29) |
|
— |
|
(95) |
|
(94) |
|
Onglyza |
|
257 |
|
(28) |
|
(25) |
|
76 |
|
(13) |
|
121 |
|
(32) |
|
(28) |
|
38 |
|
(37) |
|
(29) |
|
22 |
|
(32) |
|
(30) |
|
Others |
|
366 |
|
(10) |
|
(7) |
|
34 |
|
(35) |
|
194 |
|
(1) |
|
4 |
|
128 |
|
(12) |
|
(10) |
|
10 |
|
(32) |
|
(24) |
|
Total CVRM |
|
9,188 |
|
13 |
|
19 |
|
2,479 |
|
11 |
|
4,119 |
|
9 |
|
15 |
|
1,906 |
|
25 |
|
40 |
|
684 |
|
10 |
|
25 |
|
BioPharmaceuticals: Respiratory & Immunology |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Symbicort |
|
2,538 |
|
(7) |
|
(2) |
|
973 |
|
(9) |
|
608 |
|
— |
|
5 |
|
582 |
|
(13) |
|
(3) |
|
375 |
|
(2) |
|
5 |
|
Fasenra |
|
1,396 |
|
11 |
|
15 |
|
906 |
|
15 |
|
43 |
|
n/m |
|
n/m |
|
305 |
|
7 |
|
20 |
|
142 |
|
(12) |
|
(1) |
|
Breztri |
|
398 |
|
96 |
|
n/m |
|
239 |
|
n/m |
|
92 |
|
68 |
|
75 |
|
33 |
|
n/m |
|
n/m |
|
34 |
|
32 |
|
56 |
|
Saphnelo |
|
116 |
|
n/m |
|
n/m |
|
111 |
|
n/m |
|
— |
|
— |
|
— |
|
2 |
|
n/m |
|
n/m |
|
3 |
|
n/m |
|
n/m |
|
Tezspire |
|
4 |
|
n/m |
|
n/m |
|
— |
|
— |
|
— |
|
— |
|
— |
|
2 |
|
n/m |
|
n/m |
|
2 |
|
n/m |
|
n/m |
|
Pulmicort |
|
645 |
|
(33) |
|
(31) |
|
65 |
|
(9) |
|
462 |
|
(40) |
|
(39) |
|
69 |
|
(6) |
|
6 |
|
49 |
|
5 |
|
15 |
|
Daliresp |
|
189 |
|
(17) |
|
(16) |
|
176 |
|
(15) |
|
3 |
|
(28) |
|
(24) |
|
9 |
|
(39) |
|
(32) |
|
1 |
|
3 |
|
7 |
|
Bevespi |
|
58 |
|
7 |
|
9 |
|
42 |
|
7 |
|
5 |
|
31 |
|
38 |
|
10 |
|
(7) |
|
5 |
|
1 |
|
n/m |
|
n/m |
|
Others |
|
421 |
|
(29) |
|
(27) |
|
143 |
|
32 |
|
230 |
|
(20) |
|
(17) |
|
42 |
|
(77) |
|
(75) |
|
6 |
|
(53) |
|
(46) |
|
Total Respiratory & Immunology |
|
5,765 |
|
(4) |
|
— |
|
2,655 |
|
10 |
|
1,443 |
|
(18) |
|
(14) |
|
1,054 |
|
(15) |
|
(5) |
|
613 |
|
(3) |
|
7 |
|
BioPharmaceuticals: Vaccines & Immune Therapies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vaxzevria |
|
1,798 |
|
(54) |
|
(52) |
|
79 |
|
24 |
|
729 |
|
(67) |
|
(67) |
|
365 |
|
(65) |
|
(61) |
|
625 |
|
8 |
|
17 |
|
Evusheld |
|
2,185 |
|
n/m |
|
n/m |
|
1,067 |
|
n/m |
|
413 |
|
n/m |
|
n/m |
|
298 |
|
n/m |
|
n/m |
|
407 |
|
n/m |
|
n/m |
|
Synagis |
|
578 |
|
41 |
|
59 |
|
1 |
|
(94) |
|
173 |
|
n/m |
|
n/m |
|
213 |
|
5 |
|
17 |
|
191 |
|
28 |
|
51 |
|
FluMist |
|
175 |
|
(31) |
|
(20) |
|
21 |
|
(21) |
|
1 |
|
(51) |
|
(54) |
|
151 |
|
(32) |
|
(20) |
|
2 |
|
(4) |
|
(10) |
|
Total Vaccines & Immune Therapies |
|
4,736 |
|
2 |
|
8 |
|
1,168 |
|
n/m |
|
1,316 |
|
(43) |
|
(41) |
|
1,027 |
|
(33) |
|
(24) |
|
1,225 |
|
68 |
|
89 |
|
Rare Disease: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Soliris |
|
3,762 |
|
(11) |
|
(5) |
|
2,180 |
|
(7) |
|
301 |
|
(29) |
|
(10) |
|
805 |
|
(21) |
|
(12) |
|
476 |
|
11 |
|
24 |
|
Ultomiris |
|
1,965 |
|
34 |
|
42 |
|
1,136 |
|
35 |
|
38 |
|
n/m |
|
n/m |
|
481 |
|
49 |
|
68 |
|
310 |
|
6 |
|
26 |
|
Strensiq |
|
958 |
|
16 |
|
18 |
|
769 |
|
19 |
|
35 |
|
41 |
|
31 |
|
78 |
|
(3) |
|
9 |
|
76 |
|
(1) |
|
16 |
|
Koselugo |
|
208 |
|
93 |
|
96 |
|
162 |
|
55 |
|
26 |
|
n/m |
|
n/m |
|
20 |
|
n/m |
|
n/m |
|
— |
|
— |
|
— |
|
Kanuma |
|
160 |
|
16 |
|
19 |
|
77 |
|
12 |
|
31 |
|
73 |
|
61 |
|
44 |
|
(3) |
|
10 |
|
8 |
|
21 |
|
38 |
|
Total Rare Disease |
|
7,053 |
|
4 |
|
10 |
|
4,324 |
|
8 |
|
431 |
|
(10) |
|
6 |
|
1,428 |
|
(3) |
|
9 |
|
870 |
|
8 |
|
24 |
|
Other medicines |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nexium |
|
1,285 |
|
(3) |
|
8 |
|
120 |
|
(6) |
|
568 |
|
(19) |
|
(13) |
|
46 |
|
(26) |
|
(17) |
|
551 |
|
28 |
|
50 |
|
Others |
|
340 |
|
(10) |
|
(7) |
|
24 |
|
(45) |
|
220 |
|
4 |
|
7 |
|
77 |
|
(29) |
|
(27) |
|
19 |
|
37 |
|
54 |
|
Total Other medicines |
|
1,625 |
|
(5) |
|
4 |
|
144 |
|
(16) |
|
788 |
|
(14) |
|
(9) |
|
123 |
|
(28) |
|
(24) |
|
570 |
|
28 |
|
50 |
|
Total Product Sales |
|
42,998 |
|
18 |
|
24 |
|
17,254 |
|
44 |
|
11,634 |
|
(4) |
|
1 |
|
8,264 |
|
9 |
|
22 |
|
5,846 |
|
22 |
|
40 |
25
All commentary in “—Geographical Review” relates to Product Sales. The market definitions used in the geographical areas review below are defined in the Glossary on pages 240 to 243 of AstraZeneca’s “Annual Report and Form 20-F Information 2024” included as exhibit 15.1 to this Form 20-F dated February 18, 2025.
2024 in brief
Product Sales increased by 16% (CER: 19%) in 2024 to $50,938 million (2023: $43,789 million; 2022: $42,998 million). Growth was well balanced across AstraZeneca's focus therapy areas and key geographies in 2024, driven by strong underlying demand.
Product Sales in the US increased by 21% to $21,655 million (2023: $17,961 million; 2022: $17,254 million) reflecting the continued growth of our Oncology medicines, Ultomiris and Symbicort .
In 2024, Product Sales in Emerging Markets increased by 15% (CER: 23%) to $13,535 million (2023: $11,751 million; 2022: $11,634 million) driven by Oncology and CVRM medicines. China sales, comprising 47% of Emerging Markets sales, increased by 9% (CER: 11%) to $6,402 million (2023: $5,867 million; 2022: $5,740 million). China sales contributed to 13% of Product Sales in 2024.
Ex-China Emerging Markets Product Sales increased by 21% (36% at CER) to $7,133 million (2023: $5,884 million; 2022: $5,894 million) driven by Oncology medicines and Farxiga from CVRM. Among Oncology medicines in Ex-China Emerging Markets, Product Sales of Tagrisso increased by 14% (CER: 30%), Imfinzi increased by 44% (CER: 78%), and Lynparza increased by 23% (CER: 37%). Product Sales of Farxiga in Ex-China Emerging Markets increased by 30% (CER: 40%) to $1,537 million (2023: $1,183 million; 2022: $847 million) in the year.
Product Sales in Europe increased by 20% (CER: 19%) to $10,848 million (2023: $9,029 million; 2022: $8,264 million). Sales of Oncology medicines comprised 38% of Europe Product Sales, which increased in 2024 by 23% (CER: 22%) to $4,082 million (2023: $3,332 million; 2022: $2,726 million) driven by sales of Tagrisso , Imfinzi and Lynparza .
Product Sales in the Established ROW region decreased by 3% (CER: increased by 3%) to $4,900 million (2023: $5,048 million; 2022: $5,846 million) largely driven by Oncology medicines. Japan, comprising 71% of total Established ROW Product Sales, decreased by 5% (CER: increased by 3%) to $3,489 million (2023: $3,654 million; 2022: $4,007 million), due to a decline in sales of Oncology medicine Imfinzi and Vaccines & Immune Therapies medicine Synagis . Product Sales in Canada, which contributed 19% of total Established ROW Product Sales, decreased by 3% (CER: 2%) to $937 million (2023: $967 million; 2022: $1,165 million).
2023 in brief
Product Sales increased by 2% (CER: 4%) in 2023 to $43,789 million (2022: $42,998 million) despite a decline of $3,839 million from COVID-19 medicine. Following completion of the Alexion acquisition on 21 July 2021, Rare Disease medicines generated $7,764 million in 2023, growing 10% (CER: 12%) as compared to 2022 and contributing 18% of AstraZeneca’s Total Product Sales.
Product Sales in the US increased by 4% to $17,961 million (2022: $17,254 million) driven by strong performance of Oncology, CVRM and Rare Disease medicines. Sales of Rare Disease medicines in the US increased by 9% to $4,701 million (2022: $4,324 million), representing 61% of total Rare Disease sales. This is largely driven by Product Sales of Ultomiris.
In 2023, Product Sales in Emerging Markets increased by 1% (CER: 8%) to $11,751 million (2022: $11,634 million). Excluding COVID-19 medicines, Product Sales in Emerging Markets increased by 12% (CER: 20%) in the year to $11,735 million. China sales, comprising 50% of Emerging Markets sales, increased by 2% (CER: 8%) to $5,867 million (2022: $5,740 million). This contributed to 13% of Product Sales in 2023.
26
Ex-China Emerging Markets Product Sales were stable at $5,884 million (increase of 8% at CER) (2022: $5,894 million). Excluding COVID-19 medicines, Product Sales in Ex-China Emerging Markets increased by 23% in the year (CER: 34%) to $5,868 million, driven by Oncology medicines and Farxiga from CVRM. Product Sales of Vaxzevria in Ex-China Emerging Markets decreased by 99% (CER: 99%) to $10 million (2022: $729 million) in the year. Product Sales of COVID-19 mAbs in Ex-China Emerging Markets decreased by 99% (CER: 99%) to $6 million (2022: $411 million) in the year.
Product Sales in Europe increased by 9% (CER: 7%) to $9,029 million (2022: $8,264 million). Sales of Rare Disease medicines comprised 17% of Europe Product Sales, which increased by 7% (CER: 5%) to $1,529 million in 2023. Oncology sales in Europe grew by 22% (CER: 20%) to $3,332 million (2022: $2,726 million) and represented 37% of Europe sales, primarily driven by sales of Tagrisso , Lynparza and Imfinzi . Excluding COVID-19 medicines , Product Sales in Europe grew by 19% (CER: 16%) to $9,015 million.
Product Sales in the Established ROW region decreased by 14% (CER: 8%) to $5,048 million (2022: $5,846 million) largely driven by the decline in Vaccines & Immune Therapies. Japan, comprising 72% of total Established ROW Product Sales, decreased by 9% (CER: 1%) to $3,654 million (2022: $4,007 million), due to the decline in sales of COVID-19 medicines , Soliris and Nexium. Product Sales in Canada, which contributed 19% of total Established ROW Product Sales, decreased by 17% (CER: 14%) to $967 million (2022: $1,165 million).
2022 in brief
Product Sales increased by 18% (CER: 24%) in 2022 to $42,998 million including Vaccines & Immune Therapies revenues. Following completion of the Alexion acquisition on 21 July 2021, Rare Disease medicines generated $7,053 million, growing 4% (CER: 10%) on a pro-rata basis, and contributed to 16% of AstraZeneca’s Total Product Sales.
Product Sales in the US increased by 44% to $17,254 million driven by strong performance of Oncology and CVRM medicines. Sales of Rare Disease medicines in the US increased to $4,324 million, representing 61% of total Rare Disease sales. This is largely driven by Product Sales of Ultomiris.
In 2022, Product Sales in Emerging Markets decreased by 4% (CER: increase of 1%) to $11,634 million. Excluding Vaxzevria , Product Sales in Emerging Markets increased by 10% (16% at CER) in the year to $10,905 million. China sales, comprising 49% of Emerging Markets sales, decreased by 4% (CER: 1%) to $5,740 million. This contributed to 13% of Product Sales in 2022.
Ex-China Emerging Markets Product Sales decreased by 4% (increase of 2% at CER) to $5,894 million. Excluding Vaxzevria sales, Product Sales in Ex-China Emerging Markets increased by 32% in the year (CER: 42%) to $5,165 million, driven by Oncology medicines and Farxiga from CVRM. Product Sales of Vaxzevria in Ex-China Emerging Markets generated $729 million in the year. Product Sales of Evusheld in Ex-China Emerging Markets generated $411 million in the year.
Product Sales in Europe increased by 9% (CER: 22%) to $8,264 million. Sales of Rare Disease medicines comprised 17% of Europe Product Sales, which decreased on a pro rata basis by 3% (CER: 9%) to $1,428 million in 2022. Oncology sales in Europe grew by 10% (CER: 23%) to $2,726 million and represented 33% of Europe sales, primarily driven by sales of Tagrisso , Lynparza and Imfinzi . Vaxzevria Product Sales contributed $365 million, amounting to 4% of total Europe Product Sales and 20% to the total Vaxzevria Product Sales in 2022. Excluding Vaxzevria, Product Sales in Europe grew by 20% (35% at CER) to $7,899 million.
Product Sales in the Established ROW region increased by 22% (CER: 40%) to $5,846 million largely driven by Soliris and Farxiga . Japan, comprising 69% of total Established ROW Product Sales, increased by 17% (CER: 39%) to $4,007 million, underpinned by sales of Vaxzevria , Evusheld and Nexium. Product Sales in Canada, which contributed 20% of total Established ROW Product Sales, increased by 51% (CER: 57%) to $1,165 million.
Sales by Region in 2024
US
Product Sales in the US increased by 21% to $21,655 million (2023: $17,961 million; 2022: $17,254 million).
Oncology
Oncology sales in the US increased by 23% to $9,510 million (2023: $7,719 million; 2022: $6,484 million).
27
Tagrisso sales in the US increased by 21% to $2,763 million (2023: $2,276 million; 2022: $2,007 million). This reflected continued demand growth in both the adjuvant and 1st-line settings and, early launch momentum in Stage III unresectable disease (LAURA), with some additional favourability coming from improved affordability.
Imfinzi sales in the US increased by 20% to $2,603 million (2023: $2,317 million; 2022: $1,552 million), benefitting from continued demand growth driven primarily by HCC and extensive-stage SCLC. The increase also reflected early growth signals from launches in early NSCLC (AEGEAN) and limited-stage SCLC (ADRIATIC).
Calquence sales in the US increased 21% to $2,190 million (2023: $1,815 million; 2022: $1,657 million), as a result of growth driven by a leading share of new patient starts in front-line CLL despite increased competitive pressure, with some additional favourability coming from improved affordability.
Lynparza sales in the US increased by 6% to $1,332 million (2023: $1,254 million; 2022: $1,226 million) as a result of continued leadership within competitive PARP inhibitor class, with demand growth across all indications, with additional favourability coming from improved affordability.
Truqap sales in the US were $408 million (2023: $6 million; 2022: $nil), as a result of strong demand growth with uptake in biomarker altered subgroup of HR+HER2- metastatic breast cancer (CAPItello-291), as well as some benefit due to one-off launch stocking of blister pack.
Imjudo sales in the US increased by 23% to $180 million (2023: $146 million; 2022: $13 million), reflecting continued demand growth.
CVRM
CVRM sales in the US increased by 12% to $3,075 million (2023: $2,752 million; 2022: $2,479 million).
Farxiga sales in the US grew by 21% to $1,750 million (2023: $1,451 million; 2022: $1,071 million), as a result of growth driven by the underlying demand in HFrEF and CKD, as well as the launch of an authorised generic in the first quarter of 2024.
Brilinta sales in the US increased by 1% to $751 million (2023: $744 million; 2022: $744 million).
Crestor sales in the US decreased by 16% to $46 million (2023: $55 million; 2022: $65 million).
Lokelma sales in the US increased by 20% to $256 million (2023: $214 million; 2022: $170 million).
Wainua sales in the US amounted to $85 million (2023: $nil; 2022: $nil), reflecting strong launch momentum.
Andexxa sales in the US increased by 7% to $81 million (2023: $75 million; 2022: $77 million).
Respiratory & Immunology
Respiratory & Immunology sales in the US increased by 34% to $3,416 million (2023: $2,547 million; 2022: $2,655 million).
Symbicort sales in the US increased by 63% to $1,187 million (2023: $726 million; 2022: $973 million) due to continued strong demand for the authorised generic and a favourable channel mix.
Fasenra sales in the US increased by 6% to $1,049 million (2023: $992 million; 2022: $906 million), benefiting from sustained double-digit volume growth, partially offset by channel mix.
Breztri sales in the US increased by 35% to $516 million (2023: $383 million; 2022: $239 million), following consistent share growth within the expanding FDC triple class.
Saphnelo sales in the US increased by 63% to $425 million (2023: $260 million; 2022: $111 million) as a result of demand acceleration.
Airsupra sales in the US increased to $66 million (2023: $nil; 2022: $nil) as a result of strong launch momentum and volume uptake.
Vaccines & Immune Therapies
Vaccines & Immune Therapies in the US increased to $280 million (2023: $109 million; 2022: $1,168 million).
28
Beyfortus sales in the US were $232 million (2023: $87 million; 2022: $nil), as a result of AstraZeneca’s sales of manufactured Beyfortus product to Sanofi, reflecting increased demand and expanded production capacity.
COVID-19 mAbs sales in the US were $28 million (2023: $nil; 2022: $1,067 million).
Rare Disease
Rare Disease sales in the US increased by 12% to $5,263 million (2023: $4,701 million; 2022: $4,324 million).
Ultomiris sales in the US increased by 29% to $2,261 million (2023: $1,750 million; 2022: $1,136 million), as a result of strong growth in patient demand in gMG (CHAMPION-MG) and NMOSD (CHAMPION-NMOSD), both new-to-branded medicines, as well as continued conversion from Soliris .
Soliris sales in the US decreased by 12% to $1,523 million (2023: $1,734 million; 2022: $2,180 million), driven by successful conversion of Soliris patients to Ultomiris .
Strensiq sales in the US increased by 25% to $1,167 million (2023: $937 million; 2022: $769 million) resulting from strong patient demand.
Koselugo sales in the US increased by 9% to $212 million (2023: $195 million; 2022: $162 million) driven by strong patient demand.
Kanuma sales in the US increased by 17% to $100 million (2023: $85 million; 2022: $77 million).
Other
Other medicines sales in the US decreased by 17% to $111 million (2023: $133 million; 2022: $144 million).
Nexium sales in the US decreased by 16% to $96 million (2023: $115 million; 2022: $120 million) due to generic competition.
Emerging Markets
Product Sales in Emerging Markets increased by 15% (CER: 23%) to $13,535 million (2023: $11,751 million; 2022: $11,634 million).
Oncology
Oncology sales in Emerging Markets increased by 18% (CER: 28%) to $4,502 million (2023: $3,828 million; 2022: $3,537 million).
Tagrisso sales in Emerging Markets increased by 8% (CER: 16%) to $1,755 million (2023: $1,621 million; 2022: $1,567 million) as a result of encouraging demand growth, partially offset by year-end hospital budget dynamics in China during the fourth quarter of 2024.
Imfinzi sales in Emerging Markets increased by 35% (CER: 59%) to $479 million (2023: $360 million; 2022: $287 million) as a result of strong demand growth driven across all approved indications, in particular BTC.
Calquence sales in Emerging Markets increased by 56% (CER: 79%) to $153 million (2023: $98 million; 2022: $45 million).
Lynparza sales in Emerging Markets increased by 21% (CER: 30%) to $655 million (2023: $542 million; 2022: $488 million), due to volume growth in China from increased share following inclusion of HRD-positive ovarian cancer (PAOLA-1) on NRDL with no price reduction effective 1 January 2024.
Enhertu sales in Emerging Markets increased to $350 million (2023: $169 million; 2022: $51 million), as a result of increased demand growth following Q1 2024 launch in HER2-positive and HER2-low metastatic breast cancer in China with some stock compensation in Q4 2024 due to NRDL enlistment.
Zoladex sales in Emerging Markets increased by 16% (CER: 23%) to $795 million (2023: $687 million; 2022: $657 million) driven by strong underlying growth in China.
29
Orpathys sales in Emerging Markets decreased by 1% (CER: increased by 1%) to $44 million (2023: $44 million; 2022: $33 million), impacted by demand in China for the treatment of patients with NSCLC with MET exon 14 skipping alterations.
CVRM
CVRM sales in Emerging Markets increased by 16% (CER: 22%) to $5,339 million (2023: $4,586 million; 2022: $4,119 million).
Forxiga sales in Emerging Markets increased by 29% (CER: 35%) to $2,853 million (2023: $2,211 million; 2022: $1,665 million) due to increased reimbursement in ex-China Emerging Markets supporting growth despite entry of generic competition in some markets. Q4 2024 sales in China impacted by year end hospital budget dynamics.
Brilinta sales in Emerging Markets increased by 3% (CER: 10%) to $294 million (2023: $285 million; 2022: $286 million) reflecting continued sales growth.
Crestor sales in Emerging Markets increased by 8% (CER: 12%) to $934 million (2023: $862 million; 2022: $794 million), reflecting continued sales growth.
Seloken sales in Emerging Markets decreased by 5% (stable at CER) to $589 million (2023: $621 million; 2022: $839 million).
Sales of roxadustat in Emerging Markets increased by 22% (CER: 24%) to $331 million (2023: $271 million; 2022: $197 million), benefitting from continued patient and volume growth.
Sales of Lokelma in Emerging Markets increased by 73% (CER: 79%) to $86 million (2023: $50 million; 2022: $20 million) reflecting strong demand growth.
Respiratory & Immunology
Respiratory & Immunology sales in Emerging Markets increased by 7% (CER: 13%) to $1,897 million (2023: $1,771 million; 2022: $1,443 million).
Symbicort sales in Emerging Markets increased by 7% (CER: 16%) to $805 million in the year (2023: $753 million; 2022: $608 million), as a result of sustained demand growth across markets in Ex-China regions, partially offset by reduced demand in the fourth quarter in 2024 in China impacted by low rates of respiratory viral infections.
Fasenra sales in Emerging Markets increased by 44% (CER: 55%) to $92 million (2023: $64 million; 2022: $43 million) due to continued strong demand growth driven by launch acceleration across key markets.
Pulmicort sales in Emerging Markets decreased by 1% (CER: increased by 3%) to $568 million (2023: $575 million; 2022: $462 million) largely as a result of lower seasonal respiratory viral infections in China during the fourth quarter of 2024.
Breztri sales in Emerging Markets increased by 52% (CER: 57%) to $245 million (2023: $161 million; 2022: $92 million) as a result of f urther expansion in additional geographies while maintaining market share leadership in China with strong FDC triple class penetration, partially offset by low rates of respiratory viral infections in China in the fourth quarter.
Vaccines & Immune Therapies
Vaccines & Immune Therapies in Emerging Markets increased by 1% (CER: 9%) to $213 million (2023: $212 million; 2022: $1,316 million).
Synagis sales in Emerging Markets increased by 8% (CER: 17%) to $210 million (2023: $195 million; 2022: $173 million).
Rare Disease
Rare Disease sales in Emerging Markets increased by 36% (CER: 63%) to $849 million (2023: $623 million; 2022: $431 million).
Ultomiris sales in the Emerging Markets increased to $141 million (2023: $71 million; 2022: $38 million) as a result of continued growth in patient demand and expansion into new markets.
30
Soliris sales in the Emerging Markets increased by 4% (CER: 34%) to $443 million (2023: $424 million; 2022: $301 million) as a result of increased patient demand.
Strensiq sales in the Emerging Markets increased by 33% (CER: 43%) to $54 million (2023: $40 million; 2022: $35 million) as a result of favourable timing of tender orders in the fourth quarter.
Koselugo sales in the Emerging Markets increased to $177 million (2023: $59 million; 2022: $26 million), as a result of growing demand following new approvals and reimbursements, as well as the favourable timing of tender orders in the fourth quarter of 2024.
Kanuma sales in the Emerging Markets increased by 19% (CER: 28%) to $34 million (2023: $29 million; 2022: $31 million).
Other
Other medicines sales in Emerging Markets increased by 1% (CER: 8%) to $735 million (2023: $731 million; 2022: $788 million).
Nexium sales in Emerging Markets increased by 2% (CER: 11%) to $591 million (2023: $578 million; 2022: $568 million).
Europe
Product Sales in Europe increased by 20% (CER: 19%) to $10,848 million (2023: $9,029 million; 2022: $8,264 million).
Oncology
Oncology sales in Europe increased by 23% (CER: 22%) to $4,082 million (2023: $3,332 million; 2022: $2,726 million).
Tagrisso sales in Europe increased by 16% (CER: 15%) to $1,301 million (2023: $1,120 million; 2022: $1,023 million), driven by continued demand growth across adjuvant and 1st-line settings.
Imfinzi sales in Europe increased by 28% (CER: 27%) to $948 million (2023: $758 million; 2022: $544 million), due to growth driven by share gains in extensive-stage SCLC as well as new launches in HCC, BTC and NSCLC.
Calquence sales in Europe increased by 33% (CER: 32%) to $656 million (2023: $493 million; 2022: $286 million) as a result of strong growth in front-line CLL while maintaining share of 1L new patient starts in a competitive environment.
Lynparza sales in Europe increased by 13% (CER: 12%) to $832 million (2023: $734 million; 2022: $655 million), as a result of growth driven by increased market share and additional launches in early breast cancer (OlympiA) and metastatic prostate cancer (PROpel).
Enhertu sales in Europe increased to $126 million (2023: $60 million; 2022: $21 million) as a result of continued growth driven by increasing adoption in HER2-positive and HER2-low metastatic breast cancer.
Zoladex sales in Europe increased by 12% (CER: 10%) to $148 million (2023: $133 million; 2022: $133 million).
CVRM
CVRM sales in Europe increased by 31% (CER: 30%) to $3,270 million (2023: $2,503 million; 2022: $1,906 million).
Forxiga sales in Europe increased by 40% (CER: 39%) to $2,634 million (2023: $1,881 million; 2022: $1,297 million) due to continued strong class growth and market share gains.
Brilique sales in Europe decreased by 1% (CER: 2%) to $268 million (2023: $271 million; 2022: $282 million).
Lokelma sales in Europe increased by 59% (CER: 58%) to $92 million (2023: $58 million; 2022: $30 million).
Andexxa sales in Europe increased by 30% (CER: 28%) to $80 million (2023: $62 million; 2022: $41 million).
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Respiratory & Immunology
Respiratory & Immunology sales in Europe increased by 22% (CER: 21%) to $1,416 million (2023: $1,164 million; 2022: $1,054 million).
Symbicort sales in Europe increased by 2% (CER: 1%) to $559 million (2023: $549 million; 2022: $582 million) due to continued growth in some markets within mild asthma, partially offset by generic erosion and a slowing overall market.
Fasenra sales in Europe increased by 14% (CER: 13%) to $404 million (2023: $355 million; 2022: $305 million), benefiting from sustained leadership in severe eosinophilic asthma.
Pulmicort sales in Europe increased by 5% (CER: 3%) to $71 million (2023: $68 million; 2022: $69 million).
Tezspire sales in Europe increased to $156 million (2023: $48 million; 2022: $2 million) as a result of achieving and maintaining new-to-brand leadership across multiple markets, while new launches continue to progress.
Trixeo sales in Europe increased by 78% (CER: 77%) to $143 million (2023: $81 million; 2022: $33 million) as a result of sustained growth across markets driven by new launches.
Vaccines & Immune Therapies
Vaccines & Immune Therapies sales in Europe increased by 3% (CER: 1%) to $409 million (2023: $396 million; 2022: $1,027 million).
Synagis sales in Europe decreased by 34% (CER: 35%) to $116 million (2023: $175 million; 2022: $213 million), due to decreased demand following rapid adoption of Beyfortus .
Beyfortus sales in Europe increased to $84 million (2023: $19 million; 2022: $nil) as a result of increased demand.
FluMist sales in Europe increased by 8% (CER: 4%) to $204 million (2023: $188 million; 2022: $151 million) as a result of continued demand growth and an earlier start in the 2024 flu season compared to the prior year.
COVID-19 mAbs sales in Europe decreased to $3 million (2023: $12 million; 2022: $298 million) .
Rare Disease
Rare Disease sales in Europe increased by 3% (CER: 2%) to $1,568 million (2023: $1,529 million; 2022: $1,428 million).
Ultomiris sales in Europe increased by 32% (CER: 31%) to $884 million (2023: $668 million; 2022: $481 million), as result of strong demand growth following recent launches, particularly from neurology indications, and ongoing conversion from Soliris .
Soliris sales in Europe decreased by 38% (CER: 38%) to $416 million (2023: $670 million; 2022: $805 million) due to decline driven by biosimilar erosion in PNH and aHUS, and continued successful conversion from Soliris to Ultomiris .
Strensiq sales in Europe increased by 11% (CER: 10%) to $99 million (2023: $89 million; 2022: $78 million), as a result of strong patient demand.
Koselugo sales in Europe increased by 93% (CER: 92%) to $103 million (2023: $53 million; 2022: $20 million) driven by patient demand.
Kanuma sales in Europe increased by 35% (CER: 35%) to $66 million (2023: $49 million; 2022: $44 million), as a result of continued demand growth.
Other
Other medicines sales in Europe decreased by 2% (CER: 3%) to $103 million (2023: $105 million; 2022: $123 million).
Nexium sales in Europe increased by 13% (CER: 11%) to $60 million (2023: $53 million; 2022: $46 million).
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Established ROW
Product Sales in the Established ROW region decreased by 3% (CER: increased by 3%) to $4,900 million (2023: $5,048 million; 2022: $5,846 million).
Oncology
Oncology sales in the Established ROW region decreased by 4% (CER: increased by 2%) to $2,181 million (2023: $2,266 million; 2022: $1,884 million). Oncology sales in Japan decreased by 9% (CER: 2%) to $1,641 million (2023: $1,804 million; 2022: $1,501 million).
Tagrisso sales in the Established ROW region decreased by 3% (CER: increased by 4%) to $761 million (2023: $782 million; 2022: $847 million) due to strong demand growth in 1st-line settings with year-over-year comparisons reflecting a price reduction in Japan in June 2023. In Japan, sales of Tagrisso decreased by 5% (CER: increased by 3%) to $609 million in the year (2023: $639 million; 2022: $695 million).
Imfinzi sales in the Established ROW region decreased by 8% (CER: 2%) to $687 million (2023: $802 million; 2022: $401 million) as a result of increased demand in GI indications, offset by 25% and 11% mandatory price reductions in Japan effective from 1 February 2024 and 1 August 2024 respectively. In Japan, sales of Imfinzi decreased by 11% (CER: 3%) to $591 million (2023: $714 million; 2022: $329 million).
Calquence sales in the Established ROW region increased by 20% (CER: 22%) to $130 million (2023: $108 million; 2022: $69 million). Calquence sales in Japan increased by 53% (CER: 64%) to $31 million (2023: $20 million; 2022: $7 million).
Lynparza sales in the Established ROW region decreased by 10% (CER: 5%) to $253 million (2023: $281 million; 2022: $269 million) reflecting a 7.7% price reduction in Japan in November 2023 despite maintained PARP class leadership. Lynparza sales in Japan decreased by 16% (CER: 9%) $176 million (2023: $210 million; 2022: $203 million).
Enhertu sales in the Established ROW region increased to $69 million (2023: $32 million; 2022: $7 million).
Zoladex sales in the Established ROW region decreased by 16% (CER: 12%) to $99 million (2023: $118 million; 2022: $122 million) due to reduced uptake in Japan. In Japan, Zoladex sales decreased by 26% (CER: 20%) to $62 million (2023: $83 million, 2022: $107 million).
Imjudo sales in the Established ROW region decreased by 5% (CER: increased by 2%) to $49 million (2023: $52 million; 2022: $nil).
CVRM
CVRM sales in the Established ROW region increased by 3% (CER: 9%) to $764 million (2023: $744 million; 2022: $684 million).
Forxiga sales in the Established ROW region was stable (CER: increased by 6%) at $419 million (2023: $420 million; 2022: $348 million) as a result of continued demand growth partially offset by generic competition in Canada. Japan sales increased by 15% (CER: 25%) to $343 million (2023: $298 million; 2022: $215 million).
Crestor sales in the Established ROW region decreased by 2% (CER: increased by 5%) to $136 million (2023: $138 million; 2022: $148 million) with growth in Japan sales of 2% (CER: 10%) to $107 million (2023: $105 million; 2022: $114 million).
Lokelma sales in the Established ROW region increased by 20% (CER: 29%) to $108 million (2023: $90 million; 2022: $69 million) driven by strong demand growth . Sales in Japan increased by 20% (CER: 29%) to $106 million in the year (2023: $88 million; 2022: $67 million).
Andexxa sales in the Established ROW region increased by 22% (CER: 31%) to $55 million (2023: $45 million; 2022: $32 million). Sales in Japan increased by 24% (CER: 33%) to $55 million in the year (2023: $44 million; 2022: $33 million).
Respiratory & Immunology
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Respiratory & Immunology sales in the Established ROW region increased by 10% (CER: 14%) to $687 million (2023: $625 million; 2022: $613 million). Respiratory & Immunology sales in Japan increased by 8% (CER: 17%) to $261 million (2023: $241 million; 2022: $222 million) in the year.
Symbicort sales in the Established ROW region decreased by 2% (stable at CER) to $328 million (2023: $334 million; 2022: $375 million). Sales in Japan decreased by 27% (CER: 21%) to $47 million (2023: $65 million; 2022: $81 million) due to continued generic erosion.
Fasenra sales in the Established ROW region increased by 1% (CER: 6%) to $144 million (2023: $142 million; 2022: $142 million) due to maintaining class leadership in a broadly stable market in Japan. Sales in Japan decreased by 4% (CER: increased by 3%) to $78 million (2023: $82 million; 2022: $88 million) in the year.
Breztri sales in the Established ROW region increased by 41% (CER: 47%) $74 million (2023: $52 million; 2022: $34 million) which is largely due to increased market share in Japan. Sales in Japan increased by 20% (CER: 29%) to $45 million (2023: $37 million; 2022: $31 million).
Tezspire sales in the Established ROW region increased to $81 million (2023: $37 million; 2022: $2 million) driven by sustained market share growth in Japan and other major geographies alongside continued launches. Sales in Japan increased to $63 million (2023: $30 million; 2022: $2 million).
Vaccines & Immune Therapies
Vaccines & Immune Therapies sales in the Established ROW region decreased by 47% (CER: 44%) to $156 million (2023: $295 million; 2022: $1,225 million). Vaccines & Immune Therapies sales in Japan decreased by 41% (CER: 37%) to $138 million (2023: $234 million; 2022: $756 million) in the year.
Synagis sales in the Established ROW region decreased by 27% (CER: 22%) to $129 million (2023: $177 million; 2022: $191 million) due to rapid adoption of Beyfortus . Sales in Japan decreased by 23% (CER: 17%) to $116 million (2023: $150 million; 2022: $162 million).
Rare Disease
Rare Disease sales in the Established ROW region increased by 8% (CER: 15%) to $988 million (2023: $911 million; 2022: $870 million). Rare Disease sales in Japan increased by 10% (CER: 19%) to $744 million (2023: $675 million; 2022: $578 million).
Ultomiris sales in the Established ROW region increased by 34% (CER: 43%) to $638 million (2023: $476 million; 2022: $310 million) driven by continued conversion from Soliris and strong demand following new launches. Sales in Japan increased by 24% (CER: 34%) to $548 million (2023: $441 million; 2022: $285 million).
Soliris sales in the Established ROW region decreased by 35% (CER: 32%) to $206 million (2023: $317 million; 2022: $476 million) driven by successful conversion from Soliris to Ultomiris . Soliris sales in Japan decreased by 44% (CER: 39%) to $75 million (2023: $133 million; 2022: $224 million).
Strensiq sales in the Established ROW region increased by 12% (CER: 18%) to $96 million (2023: $86 million; 2022: $76 million) driven by strong patient demand. Sales in Japan increased by 12% (CER: 20%) to $82 million (2023: $74 million; 2022: $66 million).
Koselugo sales in the Established ROW region increased by 62% (CER: 73%) to $39 million (2023: $24 million; 2022: $nil) driven by strong patient demand. Sales in Japan increased by 51% (CER: 64%) to $35 million (2023: $23 million; 2022: $nil).
Other
Other medicines sales in the Established ROW region decreased by 40% (CER: 36%) to $124 million (2023: $207 million; 2022: $570 million). Sales in Japan decreased by 48% (CER: 43%) to $82 million (2023: $156 million; 2022: $507 million).
Nexium sales in the Established ROW region decreased by 40% (CER: 36%) to $120 million (2023: $199 million; 2022: $551 million) due to the impact of generic competition. Sales in Japan decreased by 48% (CER: 43%) to $78 million (2023: $150 million; 2022: $497 million).
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Disclosures Under the Iran Threat Reduction and Syria Human Rights Act of 2012
AstraZeneca is a global, innovation-driven biopharmaceutical business with operations in over 100 countries and its innovative medicines are used by millions of patients worldwide. AstraZeneca has a legal entity based in Iran, AstraZeneca Pars Company (“AstraZeneca Pars”), which has no employees, and is owned by non-US Group companies. In July 2017, AstraZeneca Pars submitted regulatory applications to the Iranian Food and Drug Administration and subsequently received marketing authorizations for several products. AstraZeneca Pars has not entered into any commercial transaction since its incorporation; products registered under AstraZeneca Pars are exclusively sold by a third-party distributor.
AstraZeneca, through one of its non-US Group companies that is neither a US person nor a foreign subsidiary of a US person, currently has sales of prescription pharmaceuticals in Iran solely through a single third-party distributor, which uses three known entities in the Iranian distribution chain. At this time, none of AstraZeneca’s US entities are involved in any business activities in Iran, or with the Iranian government. To the best knowledge of the management of AstraZeneca, the third-party distributor used by AstraZeneca is not owned or controlled by the Iranian government and AstraZeneca does not have any agreements, commercial arrangements, or other contracts with the Iranian government. However, AstraZeneca understands that one of the independent sub-distributors of AstraZeneca’s third-party distributor is likely to be indirectly controlled by the Iranian government. Further, AstraZeneca’s third-party distributor may initiate payments using banks associated with the government of Iran for the purchase of AstraZeneca products. Finally, Government agencies, hospitals and institutions may purchase AstraZeneca products from the third-party distributor or the sub-distributors.
Throughout 2017 to 2024, AstraZeneca, through a distributor, sponsored health care provider education programs in Iran, including for employees of hospitals owned or controlled by the Iranian Ministry of Health.
For the year ended December 31, 2024, the Company’s gross revenues and net profits attributable to the above-mentioned Iranian activities were $35 million and $17 million respectively. For the same period, AstraZeneca’s gross revenues and net profits were $54.1 billion and $7.0 billion, respectively. Accordingly, the gross revenues and net profits attributable to the above-mentioned Iranian activities amounted to approximately 0.06% of AstraZeneca’s gross revenues and approximately 0.24% of its net profits.
At the time of publication, the management of AstraZeneca does not anticipate any change in its activities in Iran that would result in a material impact on AstraZeneca.
C. Organizational Structure
The information (including tabular data) set forth under the headings “Additional Information—Directors’ Report—Subsidiaries and principal activities” and “—Branches and countries in which the Group conducts business” on page 230 and “Financial Statements—Group Subsidiaries and Holdings” on pages 214 to 218, in each case of AstraZeneca’s “Annual Report and Form 20-F Information 2024” included as exhibit 15.1 to this Form 20-F dated February 18, 2025 is incorporated by reference.
D. Property, Plant and Equipment
Please see the information below under the heading Item 5—“Operating and Financial Review and Prospects—Operating Results—2024 compared with 2023”. The information (including tabular data) set forth under the headings “Strategic Report—Business Review—Science and Innovation—Research and Development” on pages 34 to 35, “Strategic Report—Business Review—Growth and Therapy Area Leadership—Operations” on page 41, “Strategic Report—Business Review—Growth and Therapy Area Leadership—Business conduct—Supplier management” on page 43, “Strategic Report—Business Review—Growth and Therapy Area Leadership—IT and IS resources” on page 44, “Financial Statements—Notes to the Group Financial Statements—Note 7—Property, plant and equipment” on page 169, “Financial Statements—Notes to the Group Financial Statements—Note 30—Commitments, contingent liabilities and contingent assets—Environmental costs and liabilities” on page 204, and “Financial Statements—Notes to the Group Financial Statements—Note 8—Leases” on pages 170 to 171, in each case of AstraZeneca’s “Annual Report and Form 20-F Information 2024” included as exhibit 15.1 to this Form 20-F dated February 18, 2025 is incorporated by reference.
Substantially all of the Group’s properties are held freehold, free of material encumbrances and are fit for their purpose. For more information, please refer to “Financial Statements—Notes to the Group Financial Statements—Note 7—Property, plant and equipment” on page 169 of AstraZeneca’s “Annual Report and Form 20-F Information 2024” included as exhibit 15.1 to this Form 20-F dated February 18, 2025.
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ITEM 4A. UNRESOLVED STAFF COMMENTS
Not applicable.
ITEM 5. OPERATING AND FINANCIAL REVIEW AND PROSPECTS
The information (including graphs and tabular data) set forth under the headings “Strategic Report—Our Strategy and Key Performance Indicators” on pages 12 to 15, “Financial Statements— Notes to the Group Financial Statements—Note 1—Revenue—Product Sales” on page 160, “Financial Statements—Notes to the Group Financial Statements—Note 28—Financial risk management objectives and policies” on pages 194 to 201, and “Additional Information—Important information for readers of this Annual Report” on page 244, in each case of AstraZeneca’s “Annual Report and Form 20-F Information 2024” included as exhibit 15.1 to this Form 20-F dated February 18, 2025 is incorporated by reference. The information contained herein under Item 8—“Summarized financial information for guarantee of securities of subsidiaries” is incorporated by reference. Please also see the information above under the heading Item 4.B—“Information on the Company—Business Overview—Geographical Review”.
A. Operating Results
2024 compared with 2023
The information set forth under the heading “Strategic Report—Financial Review” on pages 67 to 84 (excluding the information set forth under the subheadings “Full year 2025: additional commentary” and “Currency impact” on page 81) of AstraZeneca’s “Annual Report and Form 20-F Information 2024” included as exhibit 15.1 to this Form 20-F dated February 18, 2025 is incorporated herein by reference.
2023 compared with 2022
The information set forth under the heading “Strategic Report—Financial Review” on pages 58 to 74 (excluding the information set forth under the subheadings “Full year 2024: additional commentary” and “Currency impact” on page 71) of AstraZeneca’s “Annual Report and Form 20-F Information 2023” included as exhibit 15.1 to the Form 20-F dated February 20, 2024 is incorporated herein by reference.
B. Liquidity and capital resources
The information (including graphs and tabular data) set forth under the headings “Strategic Report—Financial Review—Cash flow and liquidity - for the year ended 31 December 2024” and “—Summary cash flows” on page 77, “Strategic Report—Financial Review—Financial position – 31 December 2024” on pages 79 to 81, “Strategic Report—Financial Review—Capitalisation and shareholder return” on page 81, “Financial Statements—Notes to the Group Financial Statements—Note 19—Interest-bearing loans and borrowings” on pages 179 to 181, “Financial Statements—Notes to the Group Financial Statements—Note 13—Derivative financial instruments” on page 177, “Financial Statements—Notes to the Group Financial Statements—Note 23—Reserves” on page 191, “Financial Statements—Notes to the Group Financial Statements—Note 30—Commitments, contingent liabilities and contingent assets” on pages 203 to 212, in each case of AstraZeneca’s “Annual Report and Form 20-F Information 2024” included as exhibit 15.1 to this Form 20-F dated February 18, 2025 is incorporated by reference.
We consider the Group’s working capital to be sufficient for its present requirements.
C. Research and development and Patent protection and licenses
The information (including graphs and tabular data) set forth under the headings “Strategic Report—Business Review—Science and Innovation—Research and Development” on pages 34 to 35, “Strategic Report—Business Review—Science and Innovation—Development pipeline overview” on page 36, “Strategic Report—Business Review—Science and Innovation—Sustainable innovation—Intellectual property” on page 37, and “Strategic Report—Business Review—People and Sustainability—Patent protection and access” on page 52, in each case of AstraZeneca’s “Annual Report and Form 20-F Information 2024” included as exhibit 15.1 to this Form 20-F dated February 18, 2025 is incorporated by reference. Please also see the information above under the headings Item 4.B—“Information on the Company— Business Overview—Development Pipeline as at February 6, 2025” and “—Patent Expiries of Key Marketed Products as at February 6, 2025”.
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D. Trend information
The information set forth in the introductory paragraph under the heading “Strategic Report—Financial Review” on page 67 and the information (including graphs and tabular data) set forth under the headings “Strategic Report—Our Strategy and Key Performance Indicators” on pages 12 to 15, “Strategic Report—Financial Review—Measuring performance” on page 69, “Financial Statements— Notes to the Group Financial Statements—Note 1—Revenue—Product Sales” on page 160, in each case of AstraZeneca’s “Annual Report and Form 20-F Information 2024” included as exhibit 15.1 to this Form 20-F dated February 18, 2025 is incorporated by reference.
E. Critical Accounting Estimates
The information (including graphs and tabular data) set forth under the headings “Strategic Report—Financial Review—Critical accounting policies and estimates” on page 82, “Financial Statements—Group Accounting Policies” on page 152 to 159 and “Financial Statements—Notes to the Group Financial Statements—Note 30—Commitments, contingent liabilities and contingent assets” on pages 203 to 212, in each case of AstraZeneca’s “Annual Report and Form 20-F Information 2024” included as exhibit 15.1 to this Form 20-F dated February 18, 2025 is incorporated by reference.
ITEM 6. DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES
A. Directors and Senior Management
The information (including tabular data) set forth under the headings “Corporate Governance—Board of Directors as at 6 February 2025” on pages 88 to 89, and “Corporate Governance—Directors’ Remuneration Report—Annual Report on Remuneration—Governance—Directors’ service contracts and letters of appointment” on page 136, in each case of AstraZeneca’s “Annual Report and Form 20-F Information 2024” included as exhibit 15.1 to this Form 20-F dated February 18, 2025 is incorporated by reference.
In addition to the Board of Directors, the Senior Executive Team, or “SET”, is the body through which the CEO exercises the authority delegated to him by the Board. The CEO leads the SET and has executive responsibility for the management, development and performance of the business. The CEO, CFO and SET also take the lead in developing the strategy for review, constructive challenge and approval by the Board as part of the annual strategy review process. The information set forth under the heading “Corporate Governance—Senior Executive Team (SET) as at 6 February 2025” on page 90 of AstraZeneca’s “Annual Report and Form 20-F Information 2024” included as exhibit 15.1 to this Form 20-F dated February 18, 2025 is incorporated by reference.
On February 18, 2025, the Company announced that Karen Knudsen, a globally-recognised cancer scientist and executive leader, will be proposed for election as a Non-Executive Director at the Company’s Annual General Meeting on April 11, 2025 (the “2025 AGM”). Karen will become a member of the Science Committee and the Sustainability Committee if elected to the Board. At the same time, the Company also announced that current Non-Executive Directors Deborah DiSanzo and Andreas Rummelt will not stand for re-election and will retire from the Board at the end of the at the 2025 AGM and that the Board has appointed Diana Layfield, Non-Executive Director, as a member of the Remuneration Committee with effect from May 1, 2025.
Senior Executive Team (SET) Biographies as at 6 February 2025
Sharon Barr – Executive Vice-President, Biopharmaceuticals R&D
Sharon was appointed as Executive Vice-President, BioPharmaceuticals R&D in August 2023. She is responsible for discovery through to late-stage development across CVRM and Respiratory & Immunology. Prior to this role, Sharon served as Senior Vice President, Head of Research and Product Development of Alexion, AstraZeneca Rare Disease having joined in 2013. With more than 18 years of industry experience she has previously led translational research, precision medicines, and global drug development teams. Sharon received her PhD in molecular biology from New York University, and completed a postdoctoral fellowship focused on mechanisms of DNA Damage and Repair at Stanford University. In 2022, Sharon was recognised as a Healthcare Businesswoman’s Association Luminary in recognition of her transformational leadership and passion for mentoring those around her.
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Pam Cheng – Executive Vice-President, Global Operations, IT & Chief Sustainability Officer
Pam was appointed Executive Vice-President, Operations & Information Technology in June 2015 and assumed additional responsibility for the AstraZeneca Sustainability strategy and function in January 2023. Pam joined AstraZeneca after having spent 18 years with Merck/MSD in Global Manufacturing and Supply Chain and Commercial roles. Pam was the Head of Global Supply Chain Management & Logistics for Merck and led the transformation of Merck supply chains across the global supply network. Pam also held the role of President of MSD China, responsible for MSD’s entire business in China. Prior to joining Merck, Pam held various engineering and project management positions at Universal Oil Products, Union Carbide Corporation and GAF Chemicals. Pam holds Bachelor’s and Master’s degrees in chemical engineering from Stevens Institute of Technology in New Jersey and an MBA in marketing from Pace University in New York.
Pam serves as a Non-Executive Director of the Smiths Group plc Board and as a Trustee Member of the Board for Stevens Institute of Technology. Pam also serves as an Advisor to the International Society of Pharmaceutical Engineering (ISPE) Board of Directors.
Ruud Dobber – Executive Vice-President, BioPharmaceuticals Business Unit
Ruud was appointed Executive Vice-President, BioPharmaceuticals Business Unit in January 2019 and is responsible for product strategy and commercial delivery for CVRM, Respiratory and Immunology, and Vaccines & Immune Therapies. Prior to this, Ruud held the role of Executive Vice-President, North America and was responsible for driving growth and maximising the contribution of the commercial operations in North America. Ruud joined Astra (later to become AstraZeneca) in 1997 and has assumed leadership roles with increasing responsibility including Executive Vice-President, North America; Executive Vice-President, Europe; Regional Vice-President, Europe, Middle East and Africa; and Regional Vice-President, Asia Pacific. Ruud served as a member of the board and executive committee of the European Federation of Pharmaceutical Industries and Associations and was previously Chairman of the Asia division of Pharmaceutical Research and Manufacturers of America. Ruud holds a doctorate in immunology from the University of Leiden, Netherlands, beginning his career as a research scientist in immunology and ageing.
Ruud was appointed as a non-executive director of the Board of Almirall S.A. in June 2021.
Marc Dunoyer – CEO, Alexion and Chief Strategy Officer, AstraZeneca
Marc became CEO of Alexion, AstraZeneca’s Rare Disease group, in August 2021 following its acquisition in July. He had previously served as an Executive Director and AstraZeneca’s Chief Financial Officer from November 2013. Marc’s career in pharmaceuticals, which has included periods with Roussel Uclaf, Hoechst Marion Roussel and GSK, has given him extensive industry experience. He is a qualified accountant and joined AstraZeneca in 2013, serving as Executive Vice-President, Global Product and Portfolio Strategy from June to October 2013. Prior to that, he served as Global Head of Rare Diseases at GSK and (concurrently) Chairman, GSK Japan. He holds an MBA from HEC Paris and a Bachelor of Law degree from Paris University.
Marc is a member of the Boards of JCR Pharmaceuticals and Cellectis.
David Fredrickson – Executive Vice-President, Oncology Haematology Business Unit
Dave was appointed Executive Vice-President, Oncology Business Unit in October 2017 and is responsible for driving growth and maximising the commercial performance of the AstraZeneca global Oncology Haematology portfolio. He has global accountability for marketing, sales, medical affairs and market access in Oncology and plays a critical leadership role in setting the Oncology portfolio and product strategy. Previously, Dave served as President of AstraZeneca K.K. in Japan, and Vice-President, Specialty Care in the United States. While in Japan, Dave also served as Vice Chairman of the European Federation of Pharmaceutical Industries and Associations Japan and was a Director of the Japan Pharmaceutical Manufacturers Association. Before joining AstraZeneca, Dave worked at Roche/Genentech, where he served in several functions and leadership positions, including Oncology Business Unit Manager in Spain, and strategy, marketing and sales roles in the United States. Prior to this, Dave worked at the Monitor Group, LLC (now Monitor Deloitte Group, LLC), a global strategy consultancy. Dave is a graduate of Georgetown University in Washington DC.
Dave was appointed to the Board of Directors of Caris Life Sciences in August 2024.
38
Susan Galbraith - Executive Vice-President, Oncology Haematology R&D
Susan was appointed as Executive Vice-President, Oncology R&D in July 2021, with responsibility for transforming the productivity and scientific output from Oncology R&D. Over her career, Susan has helped develop 12 approved medicines. A Clinical Oncologist by background, Susan studied medicine at Manchester and Cambridge Universities and has a PhD from the University of London. In recognition of her contributions to Oncology drug development, she has been awarded an honorary Doctorate of Medical Science from the Institute of Cancer Research (ICR), is a Fellow of the Academy of Medical Sciences and elected to the Academy of the American Association for Cancer Research (AACR). Susan is a member of the Cambridge Cancer Centre Executive Committee and the Scientific Advisory Board of the ICR. From 2021 to 2024 she served on the Board of Directors of the AACR and currently serves on the European Association of Cancer Research (EACR) Advisory Council.
Jeff Pott – Chief Human Resources Officer, Chief Compliance Officer and General Counsel
Jeff was appointed General Counsel in January 2009 and has overall responsibility for all aspects of AstraZeneca’s Legal and IP function. In addition to his role as General Counsel, he was appointed Chief Human Resources Officer in January 2021 assuming additional responsibilities for the AstraZeneca Human Resources function and was appointed Chief Compliance Officer in January 2023. Jeff joined AstraZeneca in 1995 and has worked in various litigation roles, where he has had responsibility for IP, anti-trust and product liability litigation. Before joining AstraZeneca, he spent five years at the US legal firm Drinker Biddle and Reath LLP, where he specialised in pharmaceutical product liability litigation and anti-trust advice and litigation. He received his Bachelor’s degree in political science from Wheaton College and his Juris Doctor Degree from Villanova University School of Law.
Iskra Reic – Executive Vice-President, International
Iskra was appointed as Executive Vice-President, International in December 2024. She is responsible for overall strategy and driving sustainable growth across the International region, which includes China, Asian and Eurasian markets, Middle East & Africa, Latin America, Australia & New Zealand. Prior to this role, Iskra held the role of EVP, Vaccines & Immune Therapies, where she was responsible for both the early and late-stage development of the Unit’s pipeline and portfolio, including COVID-19 and RSV vaccines and monoclonal antibodies, strategic partnerships and acquisitions, medical affairs and commercial operations. Iskra has served on AstraZeneca’s Senior Executive Team since 2017 when she was EVP for Europe & Canada. She has also held senior roles across Central & Eastern Europe, Middle East and Africa, and Eurasia. Iskra has a PhD in Strategy and Leadership and an International Executive MBA in Business and Leadership from the IEDC-Bled School of Management, Slovenia. She also holds a DMD from the Medical University of Zagreb.
Iskra was appointed as a non-executive director of the Board of Directors of myTomorrows in July 2024. She is also a member of the Steering Committee of the Partnership for Health System Sustainability and Resilience.
B. Compensation
The information (including graphs and tabular data) set forth under the headings “Corporate Governance—Directors’ Remuneration Report” on pages 112 to 115, “Corporate Governance—Corporate Governance Report—Compliance with the UK Corporate Governance Code—5. Remuneration” on page 93, “Strategic Report—Our Strategy and Key Performance Indicators—Our Key Performance Indicators and remuneration” on page 12, “Financial Statements—Notes to the Group Financial Statements—Note 22—Post-retirement pension and other defined benefit schemes” on pages 184 to 191, “Financial Statements—Notes to the Group Financial Statements—Note 29—Employee costs and share plans for employees” on pages 201 to 203 and “Financial Statements—Notes to the Group Financial Statements—Note 31—Statutory and other information—Key management personnel compensation”, on page 213, in each case of AstraZeneca’s “Annual Report and Form 20-F Information 2024” included as exhibit 15.1 to this Form 20-F dated February 18, 2025 is incorporated by reference.
39
C. Board Practices
The information (including graphs and tabular data) set forth under the headings “Corporate Governance—Corporate Governance Overview” on page 87, “Corporate Governance—Board of Directors as at 6 February 2025” on pages 88 to 89, “Corporate Governance—Senior Executive Team (SET) as at 6 February 2025” on page 90, “Corporate Governance—Corporate Governance Report—Compliance with the UK Corporate Governance Code—1. Board leadership and Company purpose” on page 91, “Corporate Governance—Corporate Governance Report—Compliance with the UK Corporate Governance Code—2. Division of responsibilities” on pages 91 to 92, “Corporate Governance—Corporate Governance Report—Compliance with the UK Corporate Governance Code—5. Remuneration” on page 93, “Corporate Governance—Sustainability Committee Report” on page 103, “Corporate Governance—Compliance with the UK Corporate Governance Code—Further information on risk management and controls—Global Compliance and GIA” on page 93, “Corporate Governance—Nomination and Governance Committee Report” on pages 100 to 101, “Corporate Governance—Science Committee Report” on page 102, “Corporate Governance—Directors’ Remuneration Report—Annual Report on Remuneration—Governance—Directors’ service contracts and letters of appointment” on page 136, “Corporate Governance—Directors’ Remuneration Report—Remuneration at a glance—Looking ahead—Executive Directors’ remuneration for 2025” on page 116, “Corporate Governance—Directors’ Remuneration Report—Annual Report on Remuneration—Executive Directors’ remuneration” on pages 119 to 127, “Corporate Governance—Directors’ Remuneration Report—Annual Report on Remuneration—Non-Executive Directors’ remuneration” on page 128 and “Corporate Governance—Audit Committee Report” on pages 104 to 111, in each case of AstraZeneca’s “Annual Report and Form 20-F Information 2024” included as exhibit 15.1 to this Form 20-F dated February 18, 2025 is incorporated by reference.
Please also see the information above under the heading Item 6.A—“Directors and Senior Management—Senior Executive Team (SET) Biographies”.
D. Employees
The information set forth under the headings “Strategic Report—Business Review—Science and Innovation—Research and Development” on pages 34 to 35, “Strategic Report—Business Review—Growth and Therapy Area Leadership—Summary and performance indicators” on page 39, “Strategic Report—Business Review—Growth and Therapy Area Leadership—Business conduct” on pages 42 to 43, “Strategic Report—Business Review—Growth and Therapy Area Leadership—Operations” on page 41, “Strategic Report—Business Review—Growth and Therapy Area Leadership—IT and IS resources” on page 44, “Strategic Report—Business Review—Growth and Therapy Area Leadership—Business development” on page 46, “Strategic Report—Business Review—People and Sustainability—Summary and performance indicators” on page 47, “Strategic Report—Business Review—People and Sustainability—People” and “—Talent attraction and retention” on pages 48 to 50 and “Financial Statements—Notes to the Group Financial Statements—Note 29—Employee costs and share plans for employees” (including the tabular data) on pages 201 to 203, in each case of AstraZeneca’s “Annual Report and Form 20-F Information 2024” included as exhibit 15.1 to this Form 20-F dated February 18, 2025 is incorporated by reference.
E. Share Ownership
The information (including graphs and tabular data) set forth under the headings “Financial Statements—Notes to the Group Financial Statements—Note 29—Employee costs and share plans for employees” on pages 201 to 203, and “Corporate Governance—Directors’ Remuneration Report—Annual Report on Remuneration—Directors’ shareholdings” on pages 129 to 131, in each case of AstraZeneca’s “Annual Report and Form 20-F Information 2024” included as exhibit 15.1 to this Form 20-F dated February 18, 2025 is incorporated by reference.
Directors’ and SET shareholdings
At January 31, 2025, the total amount of the Company’s voting securities owned by Directors of the Company and SET members was:
|
Title of class |
|
Amount owned |
|
Percentage of class |
|
|
Ordinary Shares |
|
583,895.00 |
|
0.038 |
% |
Options to purchase securities from registrant or subsidiaries
At January 31, 2025, options outstanding to subscribe for Ordinary Shares were:
|
Number of shares |
|
Subscription price (pence) |
|
Normal expiry date |
|
1,134,487 |
|
5833 - 10441 |
|
2024 - 2030 |
40
The weighted average subscription price of options outstanding at January 31, 2025 was 8825 pence. All options were granted under Company employee share schemes. None of the options included in the table above have been granted to SET members. During 2024, no options were held by Directors. During the period January 1, 2025 to January 31, 2025, no Director was granted or exercised any options.
F. Disclosure of a registrant’s action to recover erroneously awarded compensation
Not applicable.
ITEM 7. MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS
A. Major Shareholders
The information set forth under the heading “Additional Information—Directors’ Report—Major shareholdings” (including tabular data) on page 231 of AstraZeneca’s “Annual Report and Form 20-F Information 2024” included as exhibit 15.1 to this Form 20-F dated February 18, 2025 is incorporated by reference.
At January 31, 2025, the proportion of Ordinary Shares represented by ADSs was 19.2% of the issued share capital of the Company. At January 31, 2025, there were 63,231 registered holders of Ordinary Shares, of which 595 were based in the United States and there were 1,502 record holders of ADRs, of which 1,484 were based in the United States.
The Company received notification pursuant to the Disclosure Guidance and Transparency Rules (DTR 5) that on the 29 January 2025, The Capital Group Companies, Inc. interest had decreased to 77,477,644 ordinary shares (4.997% of issued share capital), including 15,953,078 ordinary shares represented by ADRs.
B. Related Party Transactions
The information set forth under the headings “Financial Statements—Notes to the Group Financial Statements—Note 31—Statutory and other information—Related party transactions” on page 213, “Additional Information—Shareholder information—Related party transactions” on page 228, “Additional Information—Shareholder information—Issued share capital, shareholdings and share prices” on page 229 and “Additional Information—Directors’ Report—Major shareholdings” on page 231, in each case of AstraZeneca’s “Annual Report and Form 20-F Information 2024” included as exhibit 15.1 to this Form 20-F dated February 18, 2025 is incorporated by reference.
C. Interests of Experts and Counsel
Not applicable.
ITEM 8. FINANCIAL INFORMATION
A. Consolidated Statements and Other Financial Information
Please see the information below under the heading Item 18—“Financial Statements.” The information (including graphs and tabular data) set forth under the headings “Additional Information—Shareholder information” on pages 228 to 229, “Strategic Report—Financial Review—Dividend and share repurchases” on page 81 and “Additional Information—Directors’ Report—Distributions to shareholders – dividends for 2024” on page 231, in each case of AstraZeneca’s “Annual Report and Form 20-F Information 2024” included as exhibit 15.1 to this Form 20-F dated February 18, 2025 is incorporated by reference.
Summarized financial information for guarantee of securities of subsidiaries
AstraZeneca Finance LLC (“AstraZeneca Finance”) is the issuer of 1.200% Notes due 2026, 4.800% Notes due 2027, 1.750% Notes due 2028, 4.875% Notes due 2028, 4.850% Notes due 2029, 4.900% Notes due 2030, 2.250% Notes due 2031, 4.900% Notes due 2031, 4.875% Notes due 2033 and 5.000% Notes due 2034 (the “AstraZeneca Finance Notes”). Each series of AstraZeneca Finance Notes has been fully and unconditionally guaranteed by AstraZeneca PLC. AstraZeneca Finance is 100% owned by AstraZeneca PLC and each of the guarantees by AstraZeneca PLC is full and unconditional and joint and several.
41
The AstraZeneca Finance Notes are senior unsecured obligations of AstraZeneca Finance and rank equally with all of AstraZeneca Finance’s existing and future senior unsecured and unsubordinated indebtedness. The guarantee by AstraZeneca PLC of the AstraZeneca Finance Notes is the senior unsecured obligation of AstraZeneca PLC and ranks equally with all of AstraZeneca PLC’s existing and future senior unsecured and unsubordinated indebtedness. Each guarantee by AstraZeneca PLC is effectively subordinated to any secured indebtedness of AstraZeneca PLC to the extent of the value of the assets securing such indebtedness. The AstraZeneca Finance Notes are structurally subordinated to indebtedness and other liabilities of the subsidiaries of AstraZeneca PLC, none of which guarantee the AstraZeneca Finance Notes.
AstraZeneca PLC manages substantially all of its operations through divisions, branches and/or investments in subsidiaries and affiliates. Accordingly, the ability of AstraZeneca PLC to service its debt and guarantee obligations is also dependent upon the earnings of its subsidiaries, affiliates, branches and divisions, whether by dividends, distributions, loans or otherwise.
Pursuant to Rule 13-01 and Rule 3-10 of Regulation S-X of the Securities Act, we present below the summary financial information for AstraZeneca PLC, as Guarantor, excluding its consolidated subsidiaries, and AstraZeneca Finance, as the issuer, excluding its consolidated subsidiaries. The following summary financial information of AstraZeneca PLC and AstraZeneca Finance is presented on a combined basis and transactions between the combining entities have been eliminated. Financial information for non-guarantor entities has been excluded. Intercompany balances and transactions between the obligor group and the non-obligor subsidiaries are presented on separate lines.
Obligor group summarised Statement of Comprehensive Income
|
|
|
FY 2024 |
|
FY 2023 |
|
|
|
$m |
|
$m |
|
Total Revenue |
|
— |
|
— |
|
Gross profit |
|
— |
|
— |
|
Operating loss |
|
(34) |
|
(34) |
|
Loss for the period |
|
(1,182) |
|
(976) |
|
Transactions with subsidiaries that are not issuers or guarantors |
|
1,661 |
|
15,660 |
Obligor group summarised Statement of Financial Position information
|
|
|
At 31 Dec 2024 |
|
At 31 Dec 2023 |
|
|
|
$m |
|
$m |
|
Current assets |
|
54 |
|
5 |
|
Non-current assets |
|
— |
|
— |
|
Current liabilities |
|
2,347 |
|
(4,856) |
|
Non-current liabilities |
|
26,603 |
|
(22,239) |
|
Amounts due from subsidiaries that are not issuers or guarantors |
|
18,272 |
|
18,421 |
|
Amounts due to subsidiaries that are not issuers or guarantors |
|
— |
|
— |
Developments in Legal Proceedings
For information in respect of material legal proceedings in which AstraZeneca is currently involved, including those discussed below, please see the information (including tabular data) set forth under the heading “Financial Statements—Notes to the Group Financial Statements—Note 30—Commitments, contingent liabilities and contingent assets” on pages 203 to 212 of AstraZeneca’s “Annual Report and Form 20-F Information 2024” included as exhibit 15.1 to this Form 20-F dated February 18, 2025 and is incorporated by reference.
The information set forth in the final paragraph under the heading “Strategic Report—Business Review—Growth and Therapy Area Leadership—Our regions” on page 39 of AstraZeneca’s “Annual Report and Form 20-F Information 2024” included as exhibit 15.1 to this Form 20-F dated February 18, 2025 is incorporated by reference.
B. Significant Changes
Please see the information set forth under the heading “Financial Statements—Notes to the Group Financial Statements—Note 32—Subsequent events” on page 213 of AstraZeneca’s “Annual Report and Form 20-F Information 2024” included as exhibit 15.1 to this Form 20-F dated February 18, 2025 and is incorporated by reference.
42
ITEM 9. THE OFFER AND LISTING
A. Offer and Listing Details
The information (including tabular data) set forth under the heading “Additional Information—Shareholder information” on pages 228 to 229 and “Additional Information—Shareholder information—Ordinary Shares in issue” on page 229 of AstraZeneca’s “Annual Report and Form 20-F Information 2024” included as exhibit 15.1 to this Form 20-F dated February 18, 2025 is incorporated by reference.
The corresponding trading symbol is “AZN” in each of AstraZeneca’s principal markets for trading in AstraZeneca shares.
B. Plan of Distribution
Not applicable.
C. Markets
The information set forth in the introductory paragraph under the heading “Additional Information—Shareholder information” on pages 228 to 229 and “Additional Information—Shareholder information—Issued share capital, shareholdings and share prices” on page 229 of AstraZeneca’s “Annual Report and Form 20-F Information 2024” included as exhibit 15.1 to this Form 20-F dated February 18, 2025 is incorporated by reference.
D. Selling Shareholders
Not applicable.
E. Dilution
Not applicable.
F. Expenses of the Issue
Not applicable.
ITEM 10. ADDITIONAL INFORMATION
A. Share Capital
Not applicable.
B. Memorandum and Articles of Association
The information set forth under the heading “Additional Information—Directors’ Report—Articles of Association” on page 231 of AstraZeneca’s “Annual Report and Form 20-F Information 2024” included as exhibit 15.1 to this Form 20-F dated February 18, 2025 is incorporated by reference. Please also see the information above in the first paragraph under the heading Item 4.A—“Information on the Company—History and Development of the Company”.
C. Material Contracts
Not applicable.
D. Exchange Controls
Other than certain economic sanctions, which may be in force from time to time, there are no governmental laws, decrees or regulations in the United Kingdom restricting the import or export of capital or affecting the remittance of dividends, interest or other payments to non-resident holders of Ordinary Shares or ADRs.
Other than certain economic sanctions, which may be in force from time to time, there are no limitations under English law or the Articles on the right of non-resident or foreign owners to be the registered holders of, or to exercise voting rights in relation to, Ordinary Shares or ADRs or to be registered holders of notes or debentures of the Company or its wholly owned subsidiary, AstraZeneca Finance LLC.
43
E. Taxation
Taxation for US persons
The following statements are intended only as a general guide to certain material UK and US federal income tax consequences of ownership of Ordinary Shares or ADRs held as capital assets by the US holders described below. This summary is based on current UK and US federal income tax law, the current US/UK double taxation convention and what is understood to be the current practice of HMRC and the US Internal Revenue Service as at the date of this Form 20-F dated February 18, 2025, each of which may change, possibly with retroactive effect. This summary does not describe all of the tax consequences that may be relevant in light of the US holders’ particular circumstances (including the US Medicare contribution tax or the US alternative minimum tax) and tax consequences applicable to US holders subject to special rules. US holders and any holders who may be subject to tax in the United States or the United Kingdom are urged to consult their tax advisers regarding the UK and US federal income tax consequences of the ownership and disposition of Ordinary Shares or ADRs in their particular circumstances.
This summary is based in part on representations of the depositary for ADRs and assumes that each obligation in the deposit agreement among the Company and the depositary and the holders from time to time of ADRs and any related agreements will be performed in accordance with its terms. For the purposes of this summary, the term ‘US holder’ means a beneficial owner of Ordinary Shares or ADRs that is, for US federal income tax purposes, an individual, a corporation or an estate or trust that, in each case, is treated as a US person.
For US federal income tax purposes, a holder of ADRs generally will be treated as the owner of the underlying Ordinary Shares. Accordingly, deposits or withdrawals of Ordinary Shares for ADRs will not be subject to US federal income tax.
UK and US income taxation of dividends
The Company is not required to withhold UK tax when paying a dividend. Liability to tax on receipt of dividends will depend upon the individual circumstances of a US holder. A US holder that is resident outside the United Kingdom for UK tax purposes will not generally be subject to UK tax on dividend income received, but should consult their own tax adviser.
For US federal income tax purposes, distributions paid by the Company to a US holder are generally included in gross income as foreign source ordinary dividend income when actually or constructively received. For any dividend paid in a foreign currency, the amount of the dividend will, in the case of ADRs, be the US dollar value of the foreign currency payment received by the depositary determined at the spot rate of the relevant foreign currency on the date the dividend is received by the depositary (or, in the case of Ordinary Shares, the US dollar value of the foreign currency payment received by the US holders, determined at the spot rate of the relevant foreign currency on the date the dividend is received by the US holders, regardless of whether the dividend is converted into US dollars). Dividends will not be eligible for the dividends received deduction generally available to US corporations.
If the dividend is converted into US dollars on the date of receipt, US holders of Ordinary Shares generally should not be required to recognise foreign currency gains or losses in respect of the dividend income. They may have foreign currency gain or loss (which would be US source and taxable at the rates applicable to ordinary income) if the amount of such dividend is converted into US dollars after the date of its receipt.
Subject to applicable limitations, dividends received by certain non-corporate US holders of Ordinary Shares or ADRs may be taxable at favourable US federal income tax rates. US holders should consult their own tax advisers to determine whether they are subject to any special rules which may limit their ability to be taxed at these favourable rates.
Taxation on capital gains
US holders that are individuals or companies who are not resident in the United Kingdom for tax purposes will generally not be liable for UK tax on capital gains made on the disposal of their Ordinary Shares or ADRs, unless such Ordinary Shares or ADRs are used, held or acquired in connection with a trade, profession or vocation carried on in the United Kingdom through a branch or agency or other permanent establishment. US holders should consult their own tax advisers about the treatment of capital gains in the United Kingdom.
44
For US federal income tax purposes, a US holder will generally recognise US source capital gain or loss on the sale or exchange of Ordinary Shares or ADRs in an amount equal to the difference between the US dollar amount realised and such holder’s US dollar tax basis in the Ordinary Shares or ADRs. US holders should consult their own tax advisers about the treatment of capital gains, which may be taxed at lower rates than ordinary income for non-corporate US holders, and capital losses, the deductibility of which may be subject to limitations.
Passive Foreign Investment Company (PFIC) rules
We believe that we were not a PFIC for US federal income tax purposes for the year ended 31 December 2024. However, since PFIC status depends on the composition of our income and assets, and the market value of our assets, from time to time, there can be no assurance that we will not be considered a PFIC for any taxable year. If we were treated as a PFIC, certain adverse tax consequences could apply to US holders.
Information reporting and backup withholding
Payments of dividends and sales proceeds that are made within the United States or through certain US-related financial intermediaries may be subject to information reporting and backup withholding, unless the US holder is an exempt recipient or, in the case of backup withholding, the US holder provides its taxpayer identification number and certifies that it is not subject to backup withholding. The amount of any backup withholding from a payment to a US holder will be allowed as a credit against the holder’s US federal income tax liability and may entitle the holder to a refund, provided that the required information is timely supplied to the US Internal Revenue Service.
Certain US holders who are individuals (or certain specified entities) may be required to report information relating to securities issued by non-US persons (or foreign accounts through which the securities are held), subject to certain exceptions (including an exception for securities held in accounts maintained by US financial institutions). US holders should consult their tax advisers regarding their reporting obligations.
UK inheritance tax
Ordinary Shares or ADRs held by an individual who is domiciled in the United States for the purposes of the United States – United Kingdom Double Taxation Convention relating to taxes on estates of deceased persons and on gifts (the Estate Tax Convention), and who is not for such purposes a national of the United Kingdom, will generally not be subject to UK inheritance tax on the individual’s death or on a lifetime transfer of the Ordinary Shares or ADRs, provided that any applicable US federal gift or estate tax liability is paid, except in certain cases where the Ordinary Shares or ADRs: (i) are comprised in a settlement (unless, at the time of the settlement, the settlor was domiciled in the United States and not a national of the United Kingdom); (ii) are part of the business property of a UK permanent establishment of an enterprise; or (iii) pertain to a UK fixed base of an individual used for the performance of independent personal services. In the exceptional case where the Ordinary Shares or ADRs are subject to both UK inheritance tax and US federal gift or estate tax, the Estate Tax Convention generally provides for double taxation to be relieved by means of credit relief.
UK stamp duty reserve tax and stamp duty
Under previous UK law, a charge to UK stamp duty or UK stamp duty reserve tax (SDRT) may have arisen on the deposit of Ordinary Shares in connection with the creation of ADRs. Under those rules, the rate of UK stamp duty or SDRT was 1.5% applied, in each case, to the issue price when the Ordinary Shares are issued, the amount or value of the consideration or, in some circumstances, the value of the Ordinary Shares. Following certain EU litigation, HMRC accepted they would no longer seek to apply the 1.5% charge to the issue (or, where it is integral to the raising of new capital, the transfer) of shares (such as the Ordinary Shares) into a depositary receipt system (such as the ADR arrangement). UK legislation enacted on June 29, 2023, in the form of the Retained EU Law (Revocation and Reform) Act 2023, created some uncertainty as to the status of the 1.5% charge from January 1, 2024. However, the Finance Act, enacted on February 22, 2024, makes provision to ensure it continues to be the case (notwithstanding the effect of the Retained EU Law (Revocation and Reform) Act 2023) that UK stamp duty or SDRT of 1.5% is not payable in relation to issues of securities into depositary receipt systems, and transfers of securities into a depositary receipt system, where such transfer is integral to the raising of new capital by the company concerned. The Finance Act 2024 also includes an additional exemption for ‘qualifying listing arrangements’ where securities are transferred (without a change in beneficial ownership) in connection with the listing of such securities on a recognised stock exchange. These measures have had effect in relation to issues and transfers of shares (such as Ordinary Shares) made on or after January 1, 2024. US holders are urged to consult their tax advisors if applicable.
45
Transfers of Ordinary Shares into CREST will generally not be subject to UK stamp duty or SDRT, unless such a transfer is made (or deemed to be made) for a consideration in money or money’s worth, in which case a liability to stamp duty or SDRT will arise, usually at the rate of 0.5% of the value of the consideration.
A transfer of, or an unconditional agreement to transfer, Ordinary Shares (whether within or outside CREST) will generally be subject to UK stamp duty and/or SDRT at 0.5% of the amount or value of any consideration (in the case of stamp duty, this will be rounded up to the nearest £5). Where both UK stamp duty and SDRT apply, then any SDRT charge may be cancelled if within six years of the date of the agreement becoming unconditional an instrument of transfer is executed pursuant to the agreement, and stamp duty is paid on that instrument. The purchaser would usually pay any UK stamp duty or SDRT that is due. No UK stamp duty will be payable on the transfer of existing ADRs, provided that there is no written instrument of transfer, and no SDRT should be payable on an unconditional agreement to transfer existing ADRs.
F. Dividends and Paying Agents
Not applicable.
G. Statement by Experts
Not applicable.
H. Documents on Display
The Company’s Articles of Association and other documents concerning the Company which are referred to in this Form 20-F dated February 18, 2025, may be inspected at the Company’s registered office at 1 Francis Crick Avenue, Cambridge Biomedical Campus, Cambridge CB2 0AA, United Kingdom.
I. Subsidiary Information
Not applicable.
J. Annual Report to Security Holders
The Company intends to submit any annual report provided to security holders in electronic format as an exhibit to a current report on Form 6-K.
ITEM 11. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
The information (including graphs and tabular data) set forth under the headings “Strategic Report—Financial Review—Financial risk management” on page 81 and “Financial Statements—Notes to the Group Financial Statements—Note 28—Financial risk management objectives and policies” on pages 194 to 201, in each case of AstraZeneca’s “Annual Report and Form 20-F Information 2024” included as exhibit 15.1 to this Form 20-F dated February 18, 2025 is incorporated by reference.
ITEM 12. DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES
A. Debt Securities
Not applicable.
B. Warrants and Rights
Not applicable.
C. Other Securities
Not applicable.
D. American Depositary Shares
Fees and Charges Payable by ADR Holders
46
In the year ended December 31, 2024, the Company’s American Depositary Receipt (“ADR”) program was administered by Deutsche Bank Trust Company Americas (“DBTCA”), as the depositary. On February 6, 2025, the Company entered into a further amended and restated Deposit Agreement (the “Deposit Agreement”) with JPMorgan Chase Bank, N.A. (“JPMorgan”), as depositary (the “Depositary”), and the holders and beneficial owners of ADRs, which transferred the Company’s ADR program from DBTCA to JPMorgan.
The holder of an ADR may have to pay the following fees and charges to the Depositary in connection with ownership of the ADR:
|
Category |
|
Depositary actions |
|
Associated fee or charge |
|
(a) Depositing or substituting the underlying shares |
|
Issuances upon deposits of shares (excluding issuances as a result of stock distributions or the exercise of rights) |
|
Up to $5.00 for each 100 ADSs (or fraction thereof) issued |
|
|
|
|
|
|
|
(b) Receiving or distributing dividends (1) |
|
Distributions of stock dividends or other free stock distributions, cash dividends or other cash distributions (i.e., sale of rights and other entitlements), distributions of securities other than ADSs or rights to purchase additional ADSs |
|
Up to $5.00 for each 100 ADSs (or fraction thereof) |
|
|
|
|
|
|
|
(c) Selling or exercising rights |
|
The exercise of rights to purchase additional ADSs |
|
Up to $5.00 for each 100 ADSs (or fraction thereof) |
|
|
|
|
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(d) Withdrawing, cancelling or reducing an underlying security |
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Surrendering ADSs for cancellation and withdrawal of deposited property |
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Up to $5.00 for each 100 ADSs (or portion thereof) surrendered or cancelled (as the case may be) |
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(e) Transferring, combination or split-up of receipts |
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Not applicable. |
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(f) General depositary services, particularly those charged on an annual basis (1) |
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Depositary services fee |
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A fee not in excess of $5.00 per 100 ADSs (or fraction thereof) held on the applicable record date(s) established by the Depositary. |
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(g) Fees and expenses of the depositary |
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Fees and expenses incurred by the Depositary or the Depositary’s agents on behalf of holders, including in connection with:
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taxes (including applicable interest and penalties) and other governmental charges
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registration of shares or other deposited securities on the share register and applicable to transfers of shares or other deposited securities to or from the name of the custodian, the Depositary or any nominees upon the making of deposits and withdrawals, respectively;
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transmission and delivery expenses
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expenses and charges incurred by the Depositary in conversion of foreign currency into US dollars
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compliance with exchange control regulations and other regulatory requirements applicable to the shares, deposited securities, ADSs and ADRs
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fees and expenses incurred by the Depositary in connection with the delivery or servicing of deposited securities
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a transaction fee per cancellation request and any applicable delivery expenses
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As incurred by the Depositary. |
| (1) | $0.03 per ADR annually. |
Fees and Payments Made by DBTCA to Us
Pursuant to the deposit agreement, the Depositary may charge a fee up to $0.05 per ADR in respect of dividends paid by us. For the year ended December 31, 2024, we agreed that DBTCA could charge an annual fee of $0.03 per ADR in respect of dividends paid by us. As at December 31, 2024, we have been paid approximately $15.9 million arising out of fees charged in respect of dividends paid during 2024 and $0.7 million as a (further) contribution to the Company’s ADR program costs. For the year ended December 31, 2024, we also agreed that DBTCA would waive a certain amount of its fees for standard costs associated with the administration of the ADR program up to $10,000 per year.
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PART II
ITEM 13. DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES
Not applicable.
ITEM 14. MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS
Not applicable.
ITEM 15. CONTROLS AND PROCEDURES
A. Disclosure Controls and Procedures
The information set forth under the heading “Corporate Governance—Corporate Governance Report—Compliance with the UK Corporate Governance Code—Further information on risk management and controls” on page 93, “Corporate Governance—Audit Committee Report—Internal controls” on page 110, and “Financial Statements—Directors’ Annual Report on Internal Controls over Financial Reporting” on page 138, in each case of AstraZeneca’s “Annual Report and Form 20-F Information 2024” included as exhibit 15.1 to this Form 20-F dated February 18, 2025 is incorporated by reference.
US corporate governance requirements
The Company’s ADRs are traded on the Nasdaq and, accordingly, it is subject to the reporting and other requirements of the SEC applicable to foreign private issuers. Section 404 of the Sarbanes-Oxley Act requires companies to include in their annual report on Form 20-F filed with the SEC, a report by management stating its responsibility for establishing internal control over financial reporting and to assess annually the effectiveness of such internal control. The Company has complied with those provisions of the Sarbanes-Oxley Act applicable to foreign private issuers.
B. Management’s Annual Report on Internal Control over Financial Reporting
As required by US regulations, management is responsible for establishing and maintaining adequate internal control over financial reporting for the Company, and is required to identify the framework used to evaluate the effectiveness of the Company’s internal control over financial reporting and to assess the effectiveness of such internal control. In this regard, management has made the same assessment and reached the same conclusion as that set forth in the section entitled “Financial Statements—Directors’ Annual Report on Internal Controls over Financial Reporting” on page 138 of AstraZeneca’s “Annual Report and Form 20-F Information 2024” included as exhibit 15.1 to this Form 20-F dated February 18, 2025, which is incorporated by reference.
C. Attestation Report of Independent Registered Public Accounting Firm
The effectiveness of the Company’s internal control over financial reporting as of December 31, 2024, has been audited by PricewaterhouseCoopers LLP, independent registered public accounting firm, as stated in its report dated February 6, 2025, which is included below under the heading Item 18—“Financial Statements—Report of Independent Registered Public Accounting Firm”.
D. Changes in Internal Control over Financial Reporting
Based on the evaluation conducted, management has concluded that no such changes have occurred during the period covered by this Form 20-F that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.
ITEM 16. RESERVED
ITEM 16A. AUDIT COMMITTEE FINANCIAL EXPERT
The information set forth under the heading “Corporate Governance—Corporate Governance Overview—Attendance in 2024—Board Committee membership and meeting attendance in 2024” on page 87 and “Corporate Governance—Audit Committee Report—Committee overview—Committee composition” on page 105, in each case of AstraZeneca’s “Annual Report and Form 20-F Information 2024” included as exhibit 15.1 to this Form 20-F dated February 18, 2025 is incorporated by reference.
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ITEM 16B. CODE OF ETHICS
The information set forth under the headings “Strategic Report—Business Review—Growth and Therapy Area Leadership—Business conduct” on pages 42 to 43, “Corporate Governance—Corporate Governance Report—Compliance with the UK Corporate Governance Code—Further information on risk management and controls—Global Compliance and GIA” on page 93, “Strategic Report—Business Review—Science and Innovation—Sustainable innovation” on page 37, and “Corporate Governance—Audit Committee Report—Activities during the year—Legal and Compliance” on page 106, in each case of AstraZeneca’s “Annual Report and Form 20-F Information 2024” included as exhibit 15.1 to this Form 20-F dated February 18, 2025 is incorporated by reference. AstraZeneca’s Code of Ethics is available within the ‘Ethics and transparency’ section of our website at www.astrazeneca.com/sustainability/ethics-and-transparency.html.
ITEM 16C. PRINCIPAL ACCOUNTANT FEES AND SERVICES
The following table sets forth the aggregate fees for professional services rendered by PricewaterhouseCoopers LLP (PCAOB ID
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Year ended December 31, |
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2024 |
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2023 |
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2022 |
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($ million) |
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Audit fees |
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29.4 |
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29.1 |
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28.7 |
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Audit-related fees |
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2.1 |
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0.8 |
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0.4 |
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All other fees |
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0.3 |
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0.2 |
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0.2 |
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Total |
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31.8 |
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30.1 |
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29.3 |
Audit fees included $14.8 million for the audit of subsidiaries pursuant to legislation (2023: $15.0 million), $10.6 million for the Group audit (2023: $10.2 million), $0.5 million for services in relation to the interim financial statements (2023: $0.6 million) and $3.5 million in respect of section 404 of the Sarbanes-Oxley Act (2023: $3.3 million). Fees payable in the year of $0.2 million (2023: $0.7 million) are in respect of the Group audit and audit of subsidiaries related to prior years.
Audit-related fees included $1.7 million of other audit-related services (2023: $0.5 million) and $0.4 million for the audit of subsidiaries’ pension schemes (2023: $0.3 million).
All other fees of $0.3 million related to other assurance services (2023: $0.2 million).
The information (including tabular data) set forth under the heading “Corporate Governance—Audit Committee Report” on pages 104 to 111 of AstraZeneca’s “Annual Report and Form 20-F Information 2024” included as exhibit 15.1 to this Form 20-F dated February 18, 2025 is incorporated by reference.
US law and regulations permit the Audit Committee pre-approval requirement to be waived with respect to engagements for non-audit services aggregating to no more than five percent of the total amount of fees paid by AstraZeneca to its principal accountants, if such engagements were not recognized by AstraZeneca at the time of engagement and were promptly brought to the attention of the Audit Committee or a designated member thereof and approved prior to the completion of the audit. In 2024 and 2023, the percentage of the total amount of fees paid by AstraZeneca to its principal accountant for non-audit services in each category that was subject to such a waiver was less than five percent for each year.
ITEM 16D. EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES
Not applicable.
ITEM 16E. PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS
Not applicable.
49
ITEM 16F. CHANGE IN REGISTRANT’S CERTIFYING ACCOUNTANT
Following a rigorous process, the Company concluded an audit tender for the Company’s external audit provider. On July 25, 2024, the Company announced that the Audit Committee of the Company has recommended, and the Board of Directors has endorsed, the appointment of KPMG LLP (“KPMG”) as the Company’s external auditor for the fiscal year ending December 31, 2026. A resolution will be put to the shareholders at the 2026 Annual General Meeting to approve this appointment. It is intended that PricewaterhouseCoopers LLP (“PwC”), who have been the Company’s independent auditor since the year ended December 31, 2017, will continue as the Company’s auditors for the year ending December 31, 2025 and will be dismissed at the conclusion of the Company’s 2026 Annual General Meeting.
During the fiscal years ended December 31, 2024 and 2023, PwC did not issue any reports on the financial statements of the Company or on the effectiveness of internal control over financial reporting that contained an adverse opinion or a disclaimer of opinion, nor were the auditors’ reports of PwC qualified or modified as to uncertainty, audit scope, or accounting principles. Furthermore, during the fiscal years ended December 31, 2024 and 2023, no “disagreements,” as that term is defined in Item 16F(a)(1)(iv) of Form 20-F and the related instructions to Item 16F of Form 20-F, occurred over any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedures, which disagreements if not resolved to PwC’s satisfaction would have caused it to make reference to the subject matter of the disagreement in connection with reports it issued during such period, or any “reportable event,” as that term is described in Item 16F(a)(1)(v) of Form 20-F.
The Company has provided PwC with a copy of the foregoing disclosure and has requested that they furnish the Company with a letter addressed to the SEC stating whether they agree with the statements contained herein and, if not, stating the respects in which they do not agree. A copy of PwC’s letter is included as exhibit 15.5 to this Form 20-F dated February 18, 2025.
ITEM 16G. CORPORATE GOVERNANCE
The Company is a public limited company incorporated in the United Kingdom admitted to the equity shares (commercial companies) category of the Official List of the Financial Conduct Authority (“FCA”) and to trading on the main market of the London Stock Exchange. As a result, it follows the U.K. Corporate Governance Code 2018 (the “U.K. Code”) in respect of its corporate governance practices. The current edition of the U.K. Code, which came into effect for reporting periods beginning on or after January 1, 2019, was effective to the Company for the year ended December 31, 2024. The Companies Act 2006 (the “U.K. Act”) and the Listing Rules of the U.K. Financial Conduct Authority (the “FCA Rules”) imposes certain requirements that also influence the Company’s corporate governance practices. The Company has ADRs listed on the Nasdaq Stock Exchange and, under the Nasdaq Listing Rules applicable to listed companies, as a foreign private issuer, the Company is permitted to follow the corporate governance practice of its home country in lieu of certain provisions of the Nasdaq Listing Rules.
The Company is required to disclose any significant ways in which its corporate governance practices differ from those followed by US companies under the Nasdaq Corporate Governance Requirements. In addition, the Company must comply fully with the provisions of the Nasdaq Corporate Governance Requirements relating to the composition, responsibilities and operation of audit committees, applicable to foreign private issuers. These provisions incorporate the rules concerning audit committees implemented by the SEC under the Sarbanes-Oxley Act. The Company has reviewed the corporate governance practices required to be followed by US companies under the Nasdaq Corporate Governance Requirements and its corporate governance practices are generally consistent with those standards.
50
A summary of the significant ways in which the Company’s corporate governance practices differ from those followed by US domestic companies under the Nasdaq Standards is set forth below.
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Nasdaq Listing Rules |
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AstraZeneca Corporate Governance Practice |
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1. Under the Nasdaq Listing Rules, the audit committee is to be directly responsible for the appointment, compensation, retention and oversight of a listed company’s external auditor. |
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Under the U.K. Act, a company’s external auditors are appointed by its shareholders, or in limited circumstances, by the directors of the company or the Secretary of State. Under the U.K. Code, a company’s audit committee is responsible for, amongst other things: conducting the tender process and making recommendations to the board, about the appointment, reappointment and removal of the external auditor, and approving the remuneration and terms of engagement of the external auditor; reviewing and monitoring the external auditor’s independence and objectivity; reviewing the effectiveness of the external audit process, taking into consideration relevant U.K. professional and regulatory requirements; and developing and implementing policy on the engagement of the external auditor to supply non-audit services. In the event that the board does not accept the audit committee’s recommendation on the external auditor appointment, reappointment or removal, a statement from the audit committee explaining its recommendation and the reasons why the board has taken a different position should be included in the company’s annual report. This should also be included in any papers recommending appointment or reappointment. |
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2. Under the Nasdaq Listing Rules, each listed company must have a formal written compensation committee charter that specifies (A) the compensation committee’s responsibility for determining, or recommending to the board for determination, the compensation of the chief executive officer and all other Executive Officers of the company, and (B) that the chief executive officer may not be present during voting or deliberations on his or her compensation. |
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Under the U.K. Code, the Company’s Remuneration Committee determines the Company’s global remuneration frameworks and principles, approves individual salary decisions and related matters for executive members of the Company’s Board of Directors, the Senior Executive Team and the Company Secretary, and reviews annual bonus payments for all executives reporting directly to the Senior Executive Team members. While the Remuneration Committee does not make initial recommendations to the Board of Directors in this respect, it does report to the Board of Directors on these matters. Under the U.K. Act, the Company is required to offer shareholders: (i) a binding vote on the Company’s forward looking remuneration policy for its directors at least every three years; and (ii) a separate annual advisory vote on the implementation of the Company’s existing remuneration policy in terms of the payments and share awards made to its directors during the year, which is disclosed in an annual remuneration report. The U.K. Code does not require that the terms of reference of the Company’s Remuneration Committee specify that the chief executive officer may not be present during voting or deliberations on his or her compensation. |
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3. Under the Nasdaq Listing Rules, each listed company must have a compensation committee comprised of at least two members each of whom must be an Independent Director, as defined under Listing Rule 5605(a)(2). |
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Under the U.K. Code, all of the members of the Company’s Remuneration Committee should be independent non-executive directors, with a minimum membership of three. Under the U.K. Code, the chair of the Company may be a member, but not chair, of the Remuneration Committee, provided he or she was considered independent on appointment as chair. In addition, the chair of a company’s remuneration committee should have served for at least 12 months on a remuneration committee before his or her appointment. |
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4. Under the Nasdaq Listing Rules, director nominees must either be selected, or recommended for the Board’s selection, either by (A) Independent Directors constituting a majority of the Board’s Independent Directors in a vote in which only Independent Directors participate, or (B) a nominations committee comprised solely of Independent Directors. |
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Under the U.K. Code, a majority of the members of the Company’s nomination committee should be independent non-executive directors. Under the U.K. Code, the chair of the Company may be a member or chair of the nomination committee, provided he or she was considered independent on appointment as chair. However, the chair of the board may not chair the nomination committee when it is dealing with the appointment of his or her successor. |
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5. Under the Nasdaq Listing Rules, the by-laws of a listed company, other than a limited partnership, must provide for a quorum requirement for shareholder meetings of not less than 331/3% of the outstanding shares of voting common stock. |
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Under the U.K. Act, if a company’s articles of association do not provide otherwise, two qualifying persons must be present at a meeting for a valid quorum, unless they are both representatives of the same corporation or have been appointed as proxies by the same shareholder. The Company’s Articles of Association contain a similar requirement. |
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6. Under the Nasdaq Listing Rules, subject to certain exceptions, shareholder approval is required prior to the issuance of securities when a stock option or purchase plan is to be established or materially amended or other equity compensation arrangement made or materially amended, pursuant to which stock may be acquired by officers, directors, employees, or consultants. |
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Under the FCA Rules, shareholder approval is required to be obtained by the Company for the adoption of equity compensation plans which are either long-term incentive schemes in which directors of the Company can participate or schemes which may involve the issue of new shares. Under the FCA Rules, these plans may not be changed to the benefit of the plan participants unless shareholder approval is obtained (with certain minor exceptions, for example, to benefit the administration of the plan or to take account of tax benefits). |
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ITEM 16H. MINE SAFETY DISCLOSURE
Not applicable.
ITEM 16I. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS
Not applicable.
ITEM 16J. INSIDER TRADING POLICIES
As part of its Global Policy Framework, the Company has
ITEM 16K. CYBERSECURITY
Risk and Management Strategy
Governance
Cybersecurity remains a core AstraZeneca enterprise risk focus area.
52
The information set forth under the heading “Strategic Report—Business Review—Growth and Therapy Area Leadership—IT and IS resources” on page 44, “Strategic Report—Business Review—Growth and Therapy Area Leadership—Cybersecurity and data privacy” on page 45, “Strategic Report—Risk Overview—Cybersecurity risk” on page 64, “Strategic Report—Risk Overview—Principal Risks—Supply chain and business execution risks—Failure in information technology or cybersecurity” on page 65, and “Corporate Governance—Audit Committee Report—Activities during the year—Cybersecurity risk, digital security and information governance” on page 106, in each case of AstraZeneca’s “Annual Report and Form 20-F Information 2024” included as exhibit 15.1 to this Form 20-F dated February 18, 2025 is incorporated by reference. Please also see the information above under the heading Item 3—“Key Information—Risk Factors—Supply chain and business execution risks—Failure in information technology or cybersecurity” above.
53
PART III
ITEM 17. FINANCIAL STATEMENTS
The Company has responded to Item 18 in lieu of this item.
ITEM 18. FINANCIAL STATEMENTS
The accompanying Consolidated Statements of Comprehensive Income, of Financial Position, of Changes in Equity and of Cash Flows and the Group Accounting Policies and the related notes (including tabular data) set forth under the headings “Financial Statements” on pages 137 to 213 (excluding the information set forth under the subheadings “Independent Auditors’ Report to the Members of AstraZeneca PLC” on pages 139 to 147) and “Financial Statements—Group Financial Record” on page 226, in each case of AstraZeneca’s “Annual Report and Form 20-F Information 2024” included as exhibit 15.1 to this Form 20-F dated February 18, 2025 is incorporated by reference.
In accordance with Rule 405(a)(3) under Regulation S-T, this information (including tabular data) is reproduced under Item 8 herein tagged with Inline XBRL formatting.
Report of Independent Registered Public Accounting Firm
To the Board of Directors and Shareholders of AstraZeneca PLC
Opinions on the Financial Statements and Internal Control over Financial Reporting
We have audited the accompanying consolidated statements of financial position of AstraZeneca PLC and its subsidiaries (the “Group”) as of 31 December 2024, 2023 and 2022, and the related consolidated statements of comprehensive income, of changes in equity and of cash flows for each of the three years in the period ended 31 December 2024, including the Group accounting policies and the related notes to the Group financial statements (collectively referred to as the “consolidated financial statements”). We also have audited the Group’s internal control over financial reporting as of 31 December 2024, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Group as of 31 December 2024, 2023 and 2022, and the results of its operations and its cash flows for each of the three years in the period ended 31 December 2024 in accordance with (i) IFRS Accounting Standards as issued by the International Accounting Standards Board, (ii) UK-adopted International Accounting Standards and (iii) International Accounting Standards as adopted by the European Union. Also in our opinion, the Group maintained, in all material respects, effective internal control over financial reporting as of 31 December 2024, based on criteria established in Internal Control - Integrated Framework (2013) issued by the COSO.
Basis for Opinions
The Group’s management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in Management’s Annual Report on Internal Control over Financial Reporting appearing under Item 15.B. Our responsibility is to express opinions on the Group’s consolidated financial statements and on the Group’s internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Group in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.
54
Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.
Definition and Limitations of Internal Control over Financial Reporting
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Critical Audit Matters
The critical audit matters communicated below are matters arising from the current period audit of the consolidated financial statements that were communicated or required to be communicated to the audit committee and that (i) relate to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgements. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.
Recognition and measurement of accruals for Managed Care, Medicaid and Medicare Part D rebates on US Product Sales (excluding Rare Diseases)
As described in the Group Accounting Policies, and Notes 1 and 20 to the consolidated financial statements, when invoicing Product Sales in the US, management estimates the rebates the Group expects to pay and considers there to be a significant estimate associated with the rebates for Managed Care, Medicaid and Medicare Part D. The major market with rebates and other revenue accruals is the US. The US Rebates, chargebacks, returns and other revenue accruals liability at 31 December 2024 amounted to $4,978 million (including $240 million attributed to Rare Diseases), principally consisting of rebates related to Managed Care, Medicaid and Medicare Part D. Rebates are amounts payable or credited to a customer, usually based on the quantity or value of Product Sales to the customer for specific products in a certain period. At the time Product Sales are invoiced, rebates and deductions that the Group expects to pay are estimated. These rebates typically arise from sales contracts with government payers, third-party managed care organisations and various state programmes. The methodology and assumptions used to estimate rebates and returns are monitored and adjusted regularly in the light of contractual and legal obligations, historical trends, past experience and projected market conditions. The rebate estimates include assumptions in respect of aggregate future sales levels, segment mix and customers’ contractual performance, and in addition for Managed Care, US Medicaid and Medicare Part D, the channel inventory levels, and assumptions related to lag time.
55
The principal considerations for our determination that performing procedures relating to recognition and measurement of accruals for Managed Care, Medicaid and Medicare Part D rebates on US Product Sales (excluding Rare Diseases) is a critical audit matter are the (i) significant estimation by management in determining the accruals for the Managed Care, Medicaid, and Medicare Part D programmes, which are monitored and adjusted in light of contractual and legal obligations, historical trends, past experience and projected market conditions and (ii) high degree of auditor judgement, subjectivity, and effort in evaluating management’s significant assumptions related to aggregate future sales levels, segment mix and customers’ contractual performance, the channel inventory levels, and lag time.
Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to management’s recognition and measurement of the Managed Care, Medicaid, and Medicare Part D rebate accruals. These procedures also included, among others, (i) developing an independent estimate of these accruals; (ii) comparing our independent estimate to the accruals recorded by management; (iii) assessing the effect of any adjustments to prior years’ accruals in the current year’s results; and (iv) testing actual payments made and rebate claims processed by the Group, and evaluating those claims for consistency with the contractual and mandated terms of the Group’s arrangements. Developing the independent estimate of the accruals involved assessing the terms of the specific rebate programmes and/or contracts with customers; historical revenue data; market demand and market conditions in the US; third party information on inventory held by direct and indirect customers; and the historical trend of actual rebate claims paid.
Impairment assessment of the product, marketing and distribution rights and other intangibles
As described in the Group Accounting Policies and Note 10 to the consolidated financial statements, the Group has product, marketing and distribution rights totalling $35,734 million and other intangibles totalling $771 million (hereafter the intangible assets) at 31 December 2024. Management performs an impairment trigger assessment for all intangible assets. Intangible assets under development and not available for use are tested annually for impairment and other intangible assets are tested when there is an indication of impairment loss or reversal. Where testing is required, the recoverable amount of the assets is estimated in order to determine the extent of impairment loss or reversal. Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the Cash Generating Unit (CGU) to which it belongs. Group level budgets and forecasts include forecast capital investment and operational impacts related to sustainability projects, as well as inflationary impacts, and form the basis for the value in use models used for impairment testing. An asset’s recoverable amount is determined as the higher of an asset’s or CGU’s fair value less costs to sell or value in use, in both cases using discounted cash flow calculations where the asset’s expected post-tax cash flows are risk-adjusted over their estimated remaining period of expected economic benefit. The key assumptions and significant estimates used in calculating the recoverable amounts are highly sensitive. The key assumptions include the outcome of research and development activities, probability of technical and regulatory success, market volume, share and pricing (to derive peak year sales), the amount and timing of projected future cash flows, and sales erosion curves following patent expiry. In 2024, the Group recorded net impairment charges of $1,569 million related to product, marketing and distribution rights and net impairment charges of $3 million related to other intangibles.
The principal considerations for our determination that performing procedures relating to the impairment assessment of the product, marketing and distribution rights and other intangibles is a critical audit matter are the significant judgements made by management when determining the recoverable amount of the Group’s individual assets or CGUs. This in turn led to a high degree of auditor judgement, subjectivity, and effort in performing procedures and evaluating assumptions in management’s cash flow projections related to the probability of technical and regulatory success, peak year sales and sales erosion curves following patent expiry. In addition, the audit effort involved the use of professionals with specialised skill and knowledge.
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Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to management’s intangible asset impairment assessment, controls over the identification of triggering events and the development of assumptions used to estimate the recoverable amounts of the Group’s CGUs. These procedures also included, among others, testing management’s process for identifying indicators for impairment and for determining the recoverable amount of the Group’s individual assets or CGUs. Testing management’s process involved a) evaluating the reasonableness of significant assumptions of i) probability of technical and regulatory success, with the assistance of professionals with specialised skill and knowledge and ii) amount and timing of projected future cash flows (in particular, the drivers of peak year sales and sales erosion curves following patent expiry); and b) reconciling the cash flows to the Board approved Group level budgets and forecasts. Evaluating management’s assumptions related to the probability of technical and regulatory success and the amount and timing of projected future cash flows involved evaluating whether the assumptions used were reasonable through (1) comparing significant assumptions to external data and benchmarks; and (2) performing a retrospective comparison of past forecasted revenues to actual past performance.
Recognition and measurement of legal provisions and disclosure of contingent liabilities
As described in the Group Accounting Policies, Note 21 and Note 30 to the consolidated financial statements, the Group is involved in various legal proceedings considered typical to its business, including actual or threatened litigation and actual or potential government investigations relating to employment matters, product liability, commercial disputes, pricing, sales and marketing practices, infringement of IP rights and the validity of certain patents and competition laws. Most of the claims involve highly complex issues. Often these issues are subject to substantial uncertainties and, therefore, the probability of a loss, if any, being sustained and/or an estimate of the amount of any loss is difficult to ascertain. As at 31 December 2024 the Group held legal provisions of $859 million and disclosed the more significant legal matters. Provisions are recognised when either a legal or constructive obligation as a result of a past event exists, it is probable that an outflow of economic resources will be required to settle the obligation and a reasonable estimate can be made of the amount of the obligation. Provision is made where an adverse outcome is probable and associated costs, including related legal costs, can be estimated reliably. Management’s assessment as to whether or not to recognise provisions or assets, and of the amounts concerned, usually involves a series of complex judgements about future events and can rely heavily on estimates and assumptions. Determining the timing of recognition of when an adverse outcome is probable is considered a key judgement.
The principal considerations for our determination that performing procedures related to recognition and measurement of legal provisions and disclosure of contingent liabilities is a critical audit matter are the significant judgement by management when assessing whether an adverse outcome is probable and can be estimated reliably, which in turn led to a high degree of auditor judgement and subjectivity in performing procedures and evaluating management’s assessment of the legal provisions and disclosures of contingent liabilities. In addition, the audit effort involved the use of professionals with specialised skill and knowledge.
Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to management’s evaluation of the liability of legal claims, including controls over determining the probability of a loss and whether the amount of loss can be reasonably estimated, as well as financial statement disclosures. These procedures also included, among others, (i) obtaining and evaluating letters of audit inquiry with internal and external legal counsel for significant litigation; (ii) testing the completeness of management’s assessment of both the identification of legal claims and possible outcomes of each significant legal matter; (iii) evaluating the reasonableness of management’s assessment regarding whether an adverse outcome is probable and estimated reliably; (iv) inspecting certain external legal documents; (v) evaluating the sufficiency of the Group’s legal provisions and contingent liabilities disclosures; and (vi) where appropriate, considering the scope, preliminary findings and conclusions of investigations with the assistance of professionals with specialised skill and knowledge.
57
Recognition, measurement and disclosure of tax liabilities for uncertain tax treatments
As described in the Group Accounting Policies and Note 30 to the consolidated financial statements, the Group faces a number of audits and reviews in jurisdictions around the world and, in some cases, is in dispute with the tax authorities. As at 31 December 2024 the total net tax liability recognised in respect of uncertain tax positions is $1,321 million and the potential for additional liabilities where the possibility of the additional liabilities falling due is more than remote is (a) $422 million related to transfer pricing matters including items under tax audit, and (b) $214 million related to other tax liabilities where the Group estimates the potential for additional liabilities above the amount provided. Tax liabilities recognised for uncertain tax treatments require management to make key judgements with respect to the outcome of current and potential future tax audits, and actual results could vary from these estimates. Accruals for tax liabilities are measured using either the most likely amount or the expected value amount depending on which method management expects to better predict the resolution of the uncertainty.
The principal considerations for our determination that performing procedures relating to recognition, measurement and disclosure of tax liabilities for uncertain tax treatments is a critical audit matter are the significant judgement made by management to estimate the tax liability, and the significant estimation uncertainty relative to the expectation of the resolution of tax audits or other disputes with tax authorities. This in turn led to a high degree of auditor judgement, subjectivity, and effort in performing procedures and evaluating management’s key judgements with respect to the outcome, estimation and recognition of current and potential future tax audits. In addition, the audit effort involved the use of professionals with specialised skill and knowledge.
Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to the identification, recognition and measurement of accruals for tax liabilities. These procedures also included, among others, testing management’s process for determining tax liabilities and uncertain tax treatments for which no tax liability is recognised; i) evaluating the completeness of management’s assessment of the identification of tax liabilities and evaluating management’s process for estimating the possible outcomes of each tax liability; ii) obtaining the status and results of tax audits and discussions with the relevant tax authorities; iii) testing the completeness and accuracy of underlying data used in the estimate; iv) evaluating the reasonableness of key judgements related to the outcome of tax audits and tax liabilities using the most likely amount or expected value depending on the resolution of the uncertainty; and v) evaluating the sufficiency of the Group’s disclosures where no tax liability is recognised. Professionals with specialised skill and knowledge were used to assist in evaluating the method used by management to measure accruals for tax contingencies, and to evaluate management’s key judgements with respect to the outcome of tax audits considering the technical merits of tax treatments and advice, if any, received from the Group’s external advisors.
Valuation of defined benefit obligations (in the UK and Sweden)
As described in the Group Accounting Policies and Note 22 to the consolidated financial statements, the Group and most of its subsidiaries offer post-retirement pension plans which cover the majority of its employees. Several of these plans are defined benefit, where benefits are based on employees’ length of service and linked to their salary. As at 31 December 2024 the Group had defined benefit obligations of $6,100 million in the UK and Sweden. Qualified independent actuaries have updated the actuarial valuations under IAS 19 for the major defined benefit schemes operated by the Group to 31 December 2024. In respect of defined benefit plans, obligations are determined using the projected unit credit method and are discounted to present value by reference to market yields on high quality corporate bonds. Given the extent of the assumptions used to determine the value of scheme liabilities, these are considered to be significant estimates. The assumptions which had the most material impact on the results of the Group were mortality rate (for the UK scheme only), discount rates and inflation levels (for both the UK and Sweden schemes).
The principal considerations for our determination that performing procedures relating to the valuation of defined benefit obligations in the UK and Sweden is a critical audit matter are the significant judgement made by management in determining the discount rate, inflation and mortality rates (UK) assumptions. This in turn led to a high degree of auditor judgement and subjectivity in applying procedures relating to these assumptions. In addition, the audit effort involved the use of professionals with specialised skill and knowledge to assist in performing these procedures and evaluating audit evidence.
58
Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to the assumptions used and the accuracy of the obligations. These procedures also included, among others, (i) the involvement of professionals with specialised skill and knowledge to assist in developing an independent expectation of the defined benefit obligations for the UK and Sweden, (ii) comparing the independent estimate to management’s estimate to evaluate the reasonableness of management’s estimate, and (iii) testing the completeness and accuracy of the underlying data used in the models. Developing the independent estimate involved independently deriving inflation, discount rate and mortality assumptions by evaluating the specifics of each plan and, where applicable, considering national information, and comparing the discount and inflation rates with developed ranges of recent external reporting of other companies.
/s/
6 February 2025
We have served as the Group’s auditor since 2017.
59
ITEM 19. EXHIBITS (1)
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1.1 |
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2.1 |
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4.1 |
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4.2 |
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4.3 |
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8.1 |
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11.2 |
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12.1 |
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12.2 |
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13.1 |
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15.1 |
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15.2 |
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Consent of PricewaterhouseCoopers LLP, independent registered public accounting firm. |
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15.3 |
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15.4 |
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1 5.5 |
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17.1 |
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List of subsidiary guarantors and issuers of guaranteed securities. |
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97.1 |
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AstraZeneca US Clawback Policy Applicable to Executive Officers. |
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101.INS |
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XBRL Instance Document. |
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101.SCH |
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XBRL Taxonomy Extension Schema. |
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101.CAL |
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XBRL Taxonomy Extension Scheme Calculation Linkbase. |
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101.DEF |
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XBRL Taxonomy Extension Scheme Definition Linkbase. |
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101.LAB |
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XBRL Taxonomy Extension Scheme Label Linkbase. |
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101.PRE |
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XBRL Taxonomy Extension Scheme Presentation Linkbase. |
| (1) | Exhibits other than those listed above are omitted when in the opinion of the registrant they are either not applicable or not material. Other Exhibits previously filed have been omitted when in the opinion of the registrant such Exhibits are no longer material. |
| (2) | Certain of the information included within exhibit 15.1, which is provided pursuant to Rule 12b-23(a)(3) of the Securities Exchange Act of 1934, as amended, is incorporated by reference in this Form 20-F, as specified elsewhere in this Form 20-F. With the exception of the items and pages so specified, the Annual Report and Form 20-F Information 2024 is not deemed to be filed as part of this Annual Report on Form 20-F. |
60
SIGNATURE
The registrant hereby certifies that it meets all of the requirements for filing on Form 20-F and that it has duly caused and authorized the undersigned to sign this annual report on its behalf.
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AstraZeneca PLC |
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By: |
/s/ Adrian Kemp |
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Name: |
Adrian Kemp |
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Title: |
Company Secretary |
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February 18, 2025 |
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61
F-1
Consolidated Statement of Comprehensive Income
for the year ended 31 December
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2024 |
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2023 |
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2022 |
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Notes |
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$m |
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$m |
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$m |
|
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Product Sales |
|
1 |
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Alliance Revenue |
|
1 |
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Collaboration Revenue |
|
1 |
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Total Revenue |
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Cost of sales |
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(
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(
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(
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Gross profit |
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Distribution expense |
|
|
|
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(
|
|
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(
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|
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(
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Research and development expense |
|
2 |
|
|
(
|
|
|
(
|
|
|
(
|
|
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Selling, general and administrative expense |
|
2 |
|
|
(
|
|
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(
|
|
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(
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|
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Other operating income and expense |
|
2 |
|
|
|
|
|
|
|
|
|
|
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Operating profit |
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|
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Finance income |
|
3 |
|
|
|
|
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|
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Finance expense |
|
3 |
|
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(
|
|
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(
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|
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(
|
|
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Share of after tax losses in associates and joint ventures |
|
11 |
|
|
(
|
|
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(
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|
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(
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Profit before tax |
|
|
|
|
|
|
|
|
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|
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|
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Taxation |
|
4 |
|
|
(
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(
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Profit for the period |
|
|
|
|
|
|
|
|
|
|
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Other comprehensive income: |
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Items that will not be reclassified to profit and loss: |
|
|
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|
|
|
|
|
|
|
|
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Remeasurement of the defined benefit pension liability |
|
22 |
|
|
|
|
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(
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|
|
|
|
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Net gains/(losses) on equity investments measured at fair value through Other comprehensive income |
|
|
|
|
|
|
|
|
|
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(
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|
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Fair value movements related to own credit risk on bonds designated as fair value through profit or loss |
|
|
|
|
|
|
|
(
|
|
|
|
|
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Tax on items that will not be reclassified to profit and loss |
|
4 |
|
|
(
|
|
|
|
|
|
(
|
|
|
|
|
|
|
|
|
|
|
(
|
|
|
|
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Items that may be reclassified subsequently to profit and loss: |
|
|
|
|
|
|
|
|
|
|
|
|
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Foreign exchange arising on consolidation |
|
23 |
|
|
(
|
|
|
|
|
|
(
|
|
|
Foreign exchange arising on designated liabilities in net investment hedges |
|
23 |
|
|
(
|
|
|
|
|
|
(
|
|
|
Fair value movements on cash flow hedges |
|
|
|
|
(
|
|
|
|
|
|
(
|
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Fair value movements on cash flow hedges transferred to profit and loss |
|
|
|
|
|
|
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(
|
|
|
|
|
|
Fair value movements on derivatives designated in net investment hedges |
|
23 |
|
|
|
|
|
|
|
|
(
|
|
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Costs of hedging |
|
|
|
|
(
|
|
|
(
|
|
|
(
|
|
|
Tax on items that may be reclassified subsequently to profit and loss |
|
4 |
|
|
|
|
|
(
|
|
|
|
|
|
|
|
|
|
|
(
|
|
|
|
|
|
(
|
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|
Other comprehensive (expense)/income for the period, net of tax |
|
|
|
|
(
|
|
|
|
|
|
(
|
|
|
Total comprehensive income for the period |
|
|
|
|
|
|
|
|
|
|
|
|
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Profit attributable to: |
|
|
|
|
|
|
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|
|
|
|
|
|
Owners of the Parent |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlling interests |
|
26 |
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income attributable to: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Owners of the Parent |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlling interests |
|
26 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per $
|
|
5 |
|
|
$
|
|
|
$
|
|
|
$
|
|
|
Diluted earnings per $
|
|
5 |
|
|
$
|
|
|
$
|
|
|
$
|
|
|
Weighted average number of Ordinary Shares in issue (millions) |
|
5 |
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted average number of Ordinary Shares in issue (millions) |
|
5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared and paid in the period |
|
25 |
|
|
|
|
|
|
|
|
|
|
All activities were in respect of continuing operations.
$m means millions of US dollars.
F-2
Consolidated Statement of Financial Position
at 31 December
|
|
|
|
|
2024 |
|
2023 |
|
2022 |
|
|
|
|
Notes |
|
$m |
|
$m |
|
$m |
|
|
Assets |
|
|
|
|
|
|
|
|
|
|
Non-current assets |
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment |
|
7 |
|
|
|
|
|
|
|
|
Right-of-use assets |
|
8 |
|
|
|
|
|
|
|
|
Goodwill |
|
9 |
|
|
|
|
|
|
|
|
Intangible assets |
|
10 |
|
|
|
|
|
|
|
|
Investments in associates and joint ventures |
|
11 |
|
|
|
|
|
|
|
|
Other investments |
|
12 |
|
|
|
|
|
|
|
|
Derivative financial instruments |
|
13 |
|
|
|
|
|
|
|
|
Other receivables |
|
14 |
|
|
|
|
|
|
|
|
Deferred tax assets |
|
4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
|
|
|
Inventories |
|
15 |
|
|
|
|
|
|
|
|
Trade and other receivables |
|
16 |
|
|
|
|
|
|
|
|
Other investments |
|
12 |
|
|
|
|
|
|
|
|
Derivative financial instruments |
|
13 |
|
|
|
|
|
|
|
|
Income tax receivable |
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
17 |
|
|
|
|
|
|
|
|
Assets held for sale |
|
18 |
|
– |
|
– |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
|
|
|
Interest-bearing loans and borrowings |
|
19 |
|
(
|
|
(
|
|
(
|
|
|
Lease liabilities |
|
8 |
|
(
|
|
(
|
|
(
|
|
|
Trade and other payables |
|
20 |
|
(
|
|
(
|
|
(
|
|
|
Derivative financial instruments |
|
13 |
|
(
|
|
(
|
|
(
|
|
|
Provisions |
|
21 |
|
(
|
|
(
|
|
(
|
|
|
Income tax payable |
|
|
|
(
|
|
(
|
|
(
|
|
|
|
|
|
|
(
|
|
(
|
|
(
|
|
|
Non-current liabilities |
|
|
|
|
|
|
|
|
|
|
Interest-bearing loans and borrowings |
|
19 |
|
(
|
|
(
|
|
(
|
|
|
Lease liabilities |
|
8 |
|
(
|
|
(
|
|
(
|
|
|
Derivative financial instruments |
|
13 |
|
(
|
|
(
|
|
(
|
|
|
Deferred tax liabilities |
|
4 |
|
(
|
|
(
|
|
(
|
|
|
Retirement benefit obligations |
|
22 |
|
(
|
|
(
|
|
(
|
|
|
Provisions |
|
21 |
|
(
|
|
(
|
|
(
|
|
|
Income tax payable |
|
|
|
(
|
|
– |
|
– |
|
|
Other payables |
|
20 |
|
(
|
|
(
|
|
(
|
|
|
|
|
|
|
(
|
|
(
|
|
(
|
|
|
Total liabilities |
|
|
|
(
|
|
(
|
|
(
|
|
|
Net assets |
|
|
|
|
|
|
|
|
|
|
Equity |
|
|
|
|
|
|
|
|
|
|
Capital and reserves attributable to equity holders of the Company |
|
|
|
|
|
|
|
|
|
|
Share capital |
|
24 |
|
|
|
|
|
|
|
|
Share premium account |
|
|
|
|
|
|
|
|
|
|
Capital redemption reserve |
|
|
|
|
|
|
|
|
|
|
Merger reserve |
|
|
|
|
|
|
|
|
|
|
Other reserves |
|
23 |
|
|
|
|
|
|
|
|
Retained earnings |
|
23 |
|
|
|
|
|
(
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlling interests |
|
26 |
|
|
|
|
|
|
|
|
Total equity |
|
|
|
|
|
|
|
|
|
The Financial Statements from pages 148 to 218 were approved by the Board and were signed on its behalf by
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Pascal Soriot |
Aradhana Sarin |
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Director |
Director |
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6 February 2025 |
|
F-3
Consolidated Statement of Changes in Equity
for the year ended 31 December
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Share |
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Capital |
|
|
|
|
|
|
|
Total |
|
Non- |
|
|
|
|
|
|
Share |
|
premium |
|
redemption |
|
Merger |
|
Other |
|
Retained |
|
attributable |
|
controlling |
|
Total |
|
|
|
|
capital |
|
account |
|
reserve |
|
reserve |
|
reserves |
|
earnings |
|
to owners |
|
interests |
|
equity |
|
|
|
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
|
At 1 January 2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the period |
|
– |
|
– |
|
– |
|
– |
|
– |
|
|
|
|
|
|
|
|
|
|
Other comprehensive expense 1 |
|
– |
|
– |
|
– |
|
– |
|
– |
|
(
|
|
(
|
|
(
|
|
(
|
|
|
Transfer to other reserves 2 |
|
– |
|
– |
|
– |
|
– |
|
|
|
(
|
|
– |
|
– |
|
– |
|
|
Transactions with owners |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends (Note 25) |
|
– |
|
– |
|
– |
|
– |
|
– |
|
(
|
|
(
|
|
– |
|
(
|
|
|
Issue of Ordinary Shares |
|
– |
|
|
|
– |
|
– |
|
– |
|
– |
|
|
|
– |
|
|
|
|
Share-based payments charge for the period (Note 29) |
|
– |
|
– |
|
– |
|
– |
|
– |
|
|
|
|
|
– |
|
|
|
|
Settlement of share plan awards |
|
– |
|
– |
|
– |
|
– |
|
– |
|
(
|
|
(
|
|
– |
|
(
|
|
|
Net movement |
|
– |
|
|
|
– |
|
– |
|
|
|
(
|
|
(
|
|
|
|
(
|
|
|
At 31 December 2022 |
|
|
|
|
|
|
|
|
|
|
|
(
|
|
|
|
|
|
|
|
|
Profit for the period |
|
– |
|
– |
|
– |
|
– |
|
– |
|
|
|
|
|
|
|
|
|
|
Other comprehensive income 1 |
|
– |
|
– |
|
– |
|
– |
|
– |
|
|
|
|
|
– |
|
|
|
|
Transfer to other reserves 2 |
|
– |
|
– |
|
– |
|
– |
|
(
|
|
|
|
– |
|
– |
|
– |
|
|
Transactions with owners |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends (Note 25) |
|
– |
|
– |
|
– |
|
– |
|
– |
|
(
|
|
(
|
|
– |
|
(
|
|
|
Dividends paid to non-controlling interests (Note 25) |
|
– |
|
– |
|
– |
|
– |
|
– |
|
– |
|
– |
|
(
|
|
(
|
|
|
Issue of Ordinary Shares |
|
|
|
|
|
– |
|
– |
|
– |
|
– |
|
|
|
– |
|
|
|
|
Share-based payments charge for the period (Note 29) |
|
– |
|
– |
|
– |
|
– |
|
– |
|
|
|
|
|
– |
|
|
|
|
Settlement of share plan awards |
|
– |
|
– |
|
– |
|
– |
|
– |
|
(
|
|
(
|
|
– |
|
(
|
|
|
Net movement |
|
|
|
|
|
– |
|
– |
|
(
|
|
|
|
|
|
|
|
|
|
|
At 31 December 2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the period |
|
– |
|
– |
|
– |
|
– |
|
– |
|
|
|
|
|
|
|
|
|
|
Other comprehensive expense 1 |
|
– |
|
– |
|
– |
|
– |
|
– |
|
(
|
|
(
|
|
(
|
|
(
|
|
|
Transfer to other reserves 2 |
|
– |
|
– |
|
– |
|
– |
|
|
|
(
|
|
– |
|
– |
|
– |
|
|
Transactions with owners |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends (Note 25) |
|
– |
|
– |
|
– |
|
– |
|
– |
|
(
|
|
(
|
|
– |
|
(
|
|
|
Dividends paid to non-controlling interests (Note 25) |
|
– |
|
– |
|
– |
|
– |
|
– |
|
– |
|
– |
|
(
|
|
(
|
|
|
Issue of Ordinary Shares |
|
– |
|
|
|
– |
|
– |
|
– |
|
– |
|
|
|
– |
|
|
|
|
Changes in non-controlling interests |
|
– |
|
– |
|
– |
|
– |
|
– |
|
– |
|
– |
|
|
|
|
|
|
Movement in shares held by Employee Benefit Trusts 2 |
|
– |
|
– |
|
– |
|
– |
|
(
|
|
– |
|
(
|
|
– |
|
(
|
|
|
Share-based payments charge for the period (Note 29) |
|
– |
|
– |
|
– |
|
– |
|
– |
|
|
|
|
|
– |
|
|
|
|
Settlement of share plan awards |
|
– |
|
– |
|
– |
|
– |
|
– |
|
(
|
|
(
|
|
– |
|
(
|
|
|
Net movement |
|
– |
|
|
|
– |
|
– |
|
(
|
|
|
|
|
|
|
|
|
|
|
At 31 December 2024 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
F-4
Consolidated Statement of Cash Flows
for the year ended 31 December
|
|
|
|
|
2024 |
|
2023 |
|
2022 |
|
|
|
|
Notes |
|
$m |
|
$m |
|
$m |
|
|
Cash flows from operating activities |
|
|
|
|
|
|
|
|
|
|
Profit before tax |
|
|
|
|
|
|
|
|
|
|
Finance income and expense |
|
3 |
|
|
|
|
|
|
|
|
Share of after tax losses of associates and joint ventures |
|
11 |
|
|
|
|
|
|
|
|
Depreciation, amortisation and impairment |
|
|
|
|
|
|
|
|
|
|
Increase in trade and other receivables |
|
|
|
(
|
|
(
|
|
(
|
|
|
(Increase)/decrease in inventories |
|
|
|
(
|
|
(
|
|
|
|
|
Increase in trade and other payables and provisions |
|
|
|
|
|
|
|
|
|
|
Gains on disposal of intangible assets |
|
2 |
|
(
|
|
(
|
|
(
|
|
|
Fair value movements on contingent consideration arising from business combinations |
|
20 |
|
|
|
|
|
|
|
|
Non-cash and other movements |
|
17 |
|
(
|
|
(
|
|
(
|
|
|
Cash generated from operations |
|
|
|
|
|
|
|
|
|
|
Interest paid |
|
|
|
(
|
|
(
|
|
(
|
|
|
Tax paid |
|
|
|
(
|
|
(
|
|
(
|
|
|
Net cash inflow from operating activities |
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities |
|
|
|
|
|
|
|
|
|
|
Acquisition of subsidiaries, net of cash acquired |
|
27 |
|
(
|
|
(
|
|
(
|
|
|
Payments upon vesting of employee share awards attributable to business combinations |
|
27 |
|
(
|
|
(
|
|
(
|
|
|
Payment of contingent consideration from business combinations |
|
20 |
|
(
|
|
(
|
|
(
|
|
|
Purchase of property, plant and equipment |
|
|
|
(
|
|
(
|
|
(
|
|
|
Disposal of property, plant and equipment |
|
|
|
|
|
|
|
|
|
|
Purchase of intangible assets |
|
|
|
(
|
|
(
|
|
(
|
|
|
Disposal of intangible assets |
|
|
|
|
|
|
|
|
|
|
Movement in profit-participation liability |
|
2 |
|
– |
|
|
|
– |
|
|
Purchase of non-current asset investments |
|
|
|
(
|
|
(
|
|
(
|
|
|
Disposal of non-current asset investments |
|
|
|
|
|
|
|
|
|
|
Movement in short-term investments, fixed deposits and other investing instruments |
|
|
|
|
|
|
|
(
|
|
|
Payments to associates and joint ventures |
|
11 |
|
(
|
|
(
|
|
(
|
|
|
Disposal of investments in associates and joint ventures |
|
|
|
|
|
– |
|
– |
|
|
Interest received |
|
|
|
|
|
|
|
|
|
|
Net cash outflow from investing activities |
|
|
|
(
|
|
(
|
|
(
|
|
|
Net cash inflow before financing activities |
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities |
|
|
|
|
|
|
|
|
|
|
Proceeds from issue of share capital |
|
|
|
|
|
|
|
|
|
|
Own shares purchased by Employee Benefit Trusts |
|
|
|
(
|
|
– |
|
– |
|
|
Issue of loans and borrowings |
|
|
|
|
|
|
|
– |
|
|
Repayment of loans and borrowings |
|
|
|
(
|
|
(
|
|
(
|
|
|
Dividends paid |
|
25 |
|
(
|
|
(
|
|
(
|
|
|
Hedge contracts relating to dividend payments |
|
25 |
|
|
|
(
|
|
(
|
|
|
Repayment of obligations under leases |
|
|
|
(
|
|
(
|
|
(
|
|
|
Movement in short-term borrowings |
|
|
|
(
|
|
|
|
|
|
|
Payment of Acerta Pharma share purchase liability |
|
|
|
(
|
|
(
|
|
(
|
|
|
Net cash outflow from financing activities |
|
|
|
(
|
|
(
|
|
(
|
|
|
Net (decrease)/increase in Cash and cash equivalents in the period |
|
|
|
(
|
|
(
|
|
|
|
|
Cash and cash equivalents at the beginning of the period |
|
|
|
|
|
|
|
|
|
|
Exchange rate effects |
|
|
|
(
|
|
(
|
|
(
|
|
|
Cash and cash equivalents at the end of the period |
|
17 |
|
|
|
|
|
|
|
F-5
Group Accounting Policies
Basis of accounting and preparation of financial information
The Consolidated Financial Statements have been prepared under the historical cost convention, modified to include revaluation to fair value of certain financial instruments and pension plan assets and liabilities as described below, in accordance with UK-adopted international accounting standards and with the requirements of the Companies Act 2006 as applicable to companies reporting under those standards. The Consolidated Financial Statements also comply fully with IFRS Accounting Standards as issued by the International Accounting Standards Board (IASB) and International Accounting Standards as adopted by the European Union.
The Consolidated Financial Statements are presented in US dollars, which is the Company’s functional currency.
In preparing their individual financial statements, the accounting policies of some overseas subsidiaries do not conform with IASB-issued IFRSs. Therefore, where appropriate, adjustments are made in order to present the Consolidated Financial Statements on a consistent basis.
New accounting requirements
The following amendments and interpretations have been issued and adopted:
| > | amendments to IAS 1 'Presentation of Financial Statements', effective for periods beginning on or after 1 January 2024 - endorsed by the United Kingdom Endorsement Board (UKEB) on 21 July 2023 |
| > | amendments to IFRS 16 'Leases', effective for periods beginning on or after 1 January 2024 - endorsed by the UKEB on 11 May 2023 |
| > | amendments to IAS 7 'Statem ent of Cash Flows', effective for periods beginning on or after 1 January 2024 - endorsed by the UKEB on 28 November 2023 |
| > | amendments to IFRS 7 ' Financial Instruments', effective for periods beginning on or after 1 January 2024 - endorsed by the UKEB on 28 November 2023. |
The above amendments and interpretations did not have a significant impact on the Group’s net results, net assets or disclosures.
Employee Benefit Trusts
Following an amendment to the Employee Benefit Trust (EBT) Deed on 10 June 2024, AstraZeneca obtained control and commenced consolidation of the EBT from June 2024. From that date, cash paid on purchases of AstraZeneca Ordinary shares or American Depository Receipts is presented within Financing activities in the Consolidated Statement of Cash Flows.
Basis for preparation of Financial Statements on a going concern basis
The Group has considerable financial resources available. As at 31 December 2024, the Group has $
The Group has assessed the prospects of the Group over a period longer than the required 12 months from the date of Board approval of these Consolidated Financial Statements, with no deterioration noted requiring a further extension of this review. The Group’s revenues are largely derived from sales of medicines covered by patents, which provide a relatively high level of resilience and predictability to cash inflows, although government price interventions in response to budgetary constraints are expected to continue to adversely affect revenues in some of our significant markets. The Group, however, anticipates new revenue streams from both recently launched medicines and those in development, and the Group has a wide diversity of customers and suppliers across different geographic areas.
Consequently, the Directors believe that, overall, the Group is well placed to manage its business risks successfully. Accordingly, they continue to adopt the going concern basis in preparing the Annual Report and Financial Statements.
Estimates and judgements
The preparation of the Financial Statements in conformity with generally accepted accounting principles requires management to make estimates and judgements that affect the reported amounts of assets and liabilities at the date of the Financial Statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
The accounting policy descriptions set out the areas where judgements and estimates need exercising, the most significant of which include the following Key Judgements and Significant Estimates:
| > | revenue recognition – see Revenue accounting policy on page 153 and Note 1 on page 160 |
| > | expensing of internal development expenses – see Research and development accounting policy on page 154 |
| > | impairment reviews of Intangible assets – see Note 10 on page 173 |
| > | useful economic life of Intangible assets – see Research and development accounting policy on page 154 |
| > | business combinations and Goodwill – see Business combinations and goodwill accounting policy on page 157 |
| > | litigation liabilities – see Litigation and Environmental Liabilities within Note 30 on page 205 |
| > | operating segments – see Note 6 on page 166 |
| > | employee benefits – see Note 22 on page 190 |
| > | taxation – see Note 30 on page 211. |
The Group has assessed the impact of sustainability topics on its financial reporting. This includes an impact assessment on the valuation and useful lives of Intangible assets and the identification and measurement of provisions and contingent liabilities in response to climate and pollution risks.
Sustainability-related opportunities on innovation are integral to the Financial Statements with a key indicator of the Group’s investment being R&D expense. Business conduct and patient safety are both considered as part of our recognition and measurement of provisions and contingent liabilities, noted within sections of Government investigations and proceedings and Product liability litigation as relevant, of Note 30. No material accounting impacts or changes to judgements or other required disclosures were noted.
Key Judgements are those judgements made in applying the Group’s accounting policies that have a material effect on the amounts of assets and liabilities recognised in the Financial Statements.
A Significant Estimate has a significant risk of material adjustment to the carrying amounts of assets and liabilities within the next financial year.
Financial risk management policies are detailed in Note 28 to the Financial Statements from page 194.
AstraZeneca’s management considers the following to be the material accounting policies in the context of the Group’s operations.
F-6
Revenue
Revenue comprises Product Sales, Alliance Revenue and Collaboration Revenue.
Revenue excludes inter-company revenues and value-added taxes.
Product Sales
Product Sales represent net invoice value less estimated rebates, returns and chargebacks, which are considered to be variable consideration and include significant estimates. Sales are recognised when the control of the goods has been transferred to a third party. This is usually when title passes to the customer, either on shipment or on receipt of goods by the customer, depending on local trading terms. Revenue is not recognised in full until it is highly probable that a significant reversal in the amount of cumulative revenue recognised will not occur.
Rebates are amounts payable or credited to a customer, usually based on the quantity or value of Product Sales to the customer for specific products in a certain period. Product Sales rebates, which relate to Product Sales that occur over a period of time, are normally issued retrospectively.
At the time Product Sales are invoiced, rebates and deductions that the Group expects to pay are estimated based upon assumptions developed using contractual terms, historical experience and market-related information. The rebates and deductions are recognised as variable consideration and recorded as a reduction to revenue with an accrual recorded. These rebates typically arise from sales contracts with government payers, third-party managed care organisations, hospitals, long-term care facilities, group purchasing organisations and various state programmes.
In markets where returns are significant, estimates of the quantity and value of goods which may ultimately be returned are accounted for at the point revenue is recognised. Our returns accruals are based on actual experience over the preceding
When a product faces generic competition, particular attention is given to the possible levels of returns and, in cases where the circumstances are such that the level of Product Sales are considered highly probable to reverse, revenues are only recognised when the right of return expires, which is generally on ultimate prescription of the product to patients.
The methodology and assumptions used to estimate rebates and returns are monitored and adjusted regularly in the light of contractual and legal obligations, historical trends, past experience and projected market conditions. Once the uncertainty associated with returns is resolved, revenue is adjusted accordingly.
Under certain collaboration agreements which include a profit sharing mechanism, our recognition of Product Sales depends on which party acts as principal in sales to the end customer. In the cases where AstraZeneca acts as principal, we record
Contracts relating to the supply of certain Vaccines & Immune Therapies medicines relating to the COVID-19 pandemic include conditions whereby payments are receivable from customers in advance of the delivery of product. Such amounts are held on the Statement of Financial Position as contract liabilities until the related revenue is recognised, generally upon product delivery. Certain of these contracts contain further provisions that restrict the use of inventory manufactured in specified supply chains to specified customers, resulting in an enforceable right to payment as the activities are performed. Under IFRS 15 ‘Revenue from Contracts with Customers’, such contracts require revenue to be recognised over time using an appropriate and reasonably measurable method to measure progress. Revenue is recognised on these contracts based on the proportion of product delivered compared to the total contracted volumes.
Certain arrangements include bill-and-hold arrangements under which the Group invoices a customer for a product but retains physical possession of the product until it is transferred to the customer at a point in time in the future. For these types of arrangements, an assessment is made to determine when the performance obligation has been satisfied, which is when control of the product is transferred to the customer. If the customer has obtained control of the product even though that product remains in the Group's physical possession, the performance obligation to transfer a product has been satisfied and Product Sales are recognised. Control is considered to have transferred when the reason for the bill-and-hold arrangement is substantive, the product can be identified separately as belonging to the customer, the product is ready for physical transfer to the customer and AstraZeneca is unable to use or sell the product to another customer.
Alliance Revenue
Alliance Revenue comprises income arising from the ongoing operation of collaborative arrangements related to sales made by collaboration partners, where AstraZeneca is entitled to a share of gross profits, share of revenues or royalties, which are recurring in nature while the collaboration agreement remains in place. Alliance Revenue does not include Product Sales where AstraZeneca is leading commercialisation in a territory, or reimbursement for AstraZeneca-incurred expenses such as R&D or promotion costs, which arise from the license of intellectual property.
The Group periodically enters into transactions where it acquires part of the rights to a product intangible (either on-market or in-process R&D), but for commercial reasons does not act as principal in selling the product to the customer and therefore does not recognise income from the product in the form of Product Sales. This may occur where, for example, a collaboration partner retains the right to commercialise in a specific territory, and has sufficient local control over that commercialisation to book Product Sales, while the Group instead receives a proportion of the value generated by those Product Sales, either in the form of a share of gross profits, a share of revenues or a royalty. This revenue is recognised when the Group's right to receive the share of the collaboration partner’s income is established and can be reliably measured.
Where an out-licensing arrangement meets the definition of a licence agreement, sales royalties are recognised when achieved by applying the royalty exemption under IFRS 15. Where the arrangement meets the definition of a licence agreement, share of gross profits, share of revenues and sales royalties are recognised when achieved by applying the royalty exemption under IFRS 15. All other sales royalties are recognised when considered it is highly probable there will not be a significant reversal of cumulative income. The determination requires estimates to be made in relation to future Product Sales.
F-7
Collaboration Revenue
Collaboration Revenue includes income arising from entering into collaborative arrangements where the Group has out-licensed (sold) certain rights associated with products and where AstraZeneca retains a significant ongoing economic interest in the product. Significant interest can include ongoing supply of finished goods, profit sharing arrangements or being principal in the sales of medicines. These collaborations may include development, manufacturing and/or commercialisation arrangements with the collaborator. Income from out-licences may take the form of upfront fees and milestones.
Timing of recognition of clinical and regulatory milestones is considered to be a Key Judgement. There can be significant uncertainty over whether it is highly probable that there would not be a significant reversal of revenue in respect of specific milestones if these are recognised before they are triggered due to them being subject to the actions of third parties. In general, where the triggering of a milestone is subject to the decisions of third parties (e.g. the acceptance or approval of a filing by a regulatory authority), the Group does not consider that the threshold for recognition is met until that decision is made.
Where Collaboration Revenue arises from the licensing of the Group’s own intellectual property, the licences we grant are typically rights to use intellectual property which do not change during the period of the licence and therefore related non-conditional revenue is recognised at the point the licence is granted and variable consideration as soon as recognition criteria are met.
Other performance obligations in the contract might include the supply of product. These arrangements typically involve the receipt of an upfront payment, which the contract attributes to the license of the intangible assets, and ongoing receipts for supply, which the contract attributes to the sale of the product we manufacture. In cases where the transaction has two or more components, we account for the delivered item (for example, the transfer of title to the intangible asset) as a separate unit of account and record revenue on delivery of that component. Where practicable, consideration is allocated to performance obligations on the basis of the standalone selling price of each performance obligation. However, where there is a licence of intellectual property, it is not always possible to establish a reliable estimate of the standalone selling price of the licence as they are unique. Therefore, in these rare situations, the residual approach is used to determine the consideration attributable to the licence.
Where fixed amounts are payable over one year from the effective date of a contract, an assessment is made as to whether a significant financing component exists, and if so, the fair value of this component is deferred and recognised as financing income over the period to the expected date of receipt.
Where control of a right-to-use licence for an intangible asset passes at the outset of an arrangement, revenue is recognised at the point in time control is transferred. Where the substance of a licence arrangement is that of a right-to-access rights attributable to an intangible asset, revenue, in the form of an upfront fee, is recognised over time, normally on a straight-line basis over the life of the contract. Where the Group provides ongoing development services, revenue in respect of this element is recognised over the duration of those services.
Where Collaboration Revenue is recorded and there is a related intangible asset that is licensed as part of the arrangement, an appropriate amount of that intangible asset is charged to Cost of sales based on an allocation of cost or value to the rights that have been licensed.
Cost of sales
Cost of sales are recognised as the associated revenue is recognised. Cost of sales include manufacturing costs, royalties payable on revenues recognised, movements in provisions for inventories, inventory write-offs and impairment charges in relation to manufacturing assets. Cost of sales also includes co-collaborator sharing of profit arising from collaborations, and foreign exchange gains and losses arising from business trading activities.
Research and development
Research expenditure is charged to profit and loss in the year in which it is incurred.
Internal development expenditure is capitalised only if it meets the recognition criteria of IAS 38 ‘Intangible Assets’. This is considered a Key Judgement. Where regulatory and other uncertainties are such that the criteria are not met, the expenditure is charged to profit and loss and this is almost invariably the case prior to approval of the drug by the relevant regulatory authority. Where, however, recognition criteria are met, Intangible assets are capitalised and amortised on a straight-line basis over their useful economic lives from product launch. At 31 December 2024,
Payments to in-license products and compounds from third parties for new research and development projects (in process research and development) generally take the form of upfront payments, milestones and royalty payments. Where payments made to third parties represent consideration for future research and development activities, an evaluation is made as to the nature of the payments. Such payments are expensed if they represent compensation for sub-contracted research and development services not resulting in a transfer of intellectual property. By contrast, payments are capitalised if they represent compensation for the transfer of identifiable intellectual property developed at the risk of the third party. Such payments may be made once development or regulatory milestones are met and may also be made on the basis of sales volumes once a product is launched. Development and regulatory milestone payments are capitalised as the milestone is triggered. Sales-related payments are accrued and capitalised with reference to the latest Group sales forecasts for approved indications at the present value of expected future cash flows. Assets capitalised are amortised, on a straight-line basis, over their useful economic lives from product launch.
The determination of useful economic life is considered to be a Key Judgement. On product launch, the Group makes a judgement as to the expected useful economic life with reference to the expiry of associated patents for the product, expectation around the competitive environment specific to the product and our detailed long-term risk-adjusted sales projections compiled annually across the Group and approved by the Board.
The useful economic life can extend beyond patent expiry dependent upon the nature of the product and the complexity of the development and manufacturing process. Significant sales can often be achieved post patent expiration.
Intangible assets
Intangible assets are stated at cost less accumulated amortisation and impairments. Intangible assets relating to products in development are subject to impairment testing annually. All Intangible assets are tested for impairment when there are indications that the carrying value may not be recoverable. The determination of the recoverable amounts includes key estimates which are highly sensitive to, and depend upon, key assumptions as detailed in Note 10 to the Financial Statements from page 172.
F-8
Impairment reviews have been carried out on all Intangible assets that are in development (and not being amortised), all major intangible assets acquired during the year and all other intangible assets that have had indicators of impairment during the year. Recoverable amount is determined as the higher of value-in-use or fair value less costs to sell using a discounted cash flow calculation, with the products’ expected cash flows risk-adjusted over their estimated remaining useful economic life. Sales forecasts and specific allocated costs (which have both been subject to appropriate senior management review and approval) are risk-adjusted and discounted using appropriate rates based on our post-tax weighted average cost of capital or for fair value less costs to sell, a required rate of return for a market participant. Our weighted average cost of capital reflects factors such as our capital structure and our costs of debt and equity.
Any impairment losses are recognised immediately in Operating profit. Intangible assets relating to products which fail during development (or for which development ceases for other reasons) are also tested for impairment and are written down to their recoverable amount (which is usually nil).
If, subsequent to an impairment loss being recognised, development restarts or other facts and circumstances change indicating that the impairment is less or no longer exists, the value of the asset is re-estimated and its carrying value is increased to the recoverable amount, but not exceeding the original value, by recognising an impairment reversal in Operating profit.
Government grants
Government grants are recognised in the Consolidated Statement of Comprehensive Income so as to match with the related expenses that they are intended to compensate. Where grants are received in advance of the related expenses, they are initially recognised in the Consolidated Statement of Financial Position under Trade and other payables as deferred income and released to net off against the related expenditure when incurred.
Each contract is assessed to determine whether there are both grant elements and supply of product which need to be separated. In each case, the contracts set out the specified terms for the supply of the product and the provisions for funding for certain costs, primarily research and development associated with the IP. It is considered whether there are any conditions for the funding to be refunded. The consideration in the contract is allocated between the grant and supply elements. The standalone selling price for the supply of products is determined by reference to observed prices with other customers. The amount allocated as a government grant is determined by reference to the specific agreed costs and activities identified in the contract as not directly attributable to the supply of product. Government grants are recorded as an offset to the relevant expense in the Consolidated Statement of Comprehensive Income and are capped to match the relevant costs incurred.
Other operating income and expense
Other operating income and expense is generated from activities outside of the Group’s normal course of business, which includes Other income from divestments of or full out-license of assets and businesses including royalties and milestones where the Group does not retain a significant continued interest. Where the arrangement meets the definition of a licence agreement, sales milestones and sales royalties are recognised when achieved by applying the royalty exemption under IFRS 15 ‘Revenue from Contracts with Customers’. All other milestones and sales royalties are recognised when it is considered highly probable that there will not be a significant reversal of cumulative income. The determination requires estimates to be made in relation to future Product Sales.
Joint arrangements and associates
The Group has arrangements over which it has joint control and which qualify as joint operations or joint ventures under IFRS 11 ‘Joint Arrangements’. For joint operations, the Group recognises its share of revenue that it earns from the joint operations and its share of expenses incurred. The Group also recognises the assets associated with the joint operations that it controls and the liabilities it incurs under the joint arrangement. For joint ventures and associates, the Group recognises its interest in the joint venture or associate as an investment and uses the equity method of accounting.
Employee benefits
The Group accounts for pensions and other employee benefits (principally healthcare) under IAS 19 ‘Employee Benefits’. In respect of defined benefit plans, obligations are determined using the projected unit credit method and are discounted to present value by reference to market yields on high-quality corporate bonds, while plan assets are measured at fair value. Given the extent of the assumptions used to determine the value of scheme assets and scheme liabilities, these are considered to be significant estimates. The operating and financing costs of such plans are recognised separately in profit and loss; current service costs are spread systematically over the lives of employees and financing costs are recognised in full in the periods in which they arise. Remeasurements of the net defined benefit pension liability, including actuarial gains and losses, are recognised immediately in Other comprehensive income.
Where the calculation results in a surplus to the Group, the recognised asset is limited to the present value of any available future refunds from the plan or reductions in future contributions to the plan subject to consideration of the effect any minimum funding requirement for future service has on the benefit available as a reduction in future contributions.
Payments to defined contribution plans are recognised in profit and loss as they fall due.
Taxation
The current tax payable is based on taxable profit for the year. Taxable profit differs from reported profit because taxable profit excludes items that are either never taxable or tax deductible or items that are taxable or tax deductible in a different period. The Group's current tax assets and liabilities are calculated using tax rates that have been enacted or substantively enacted by the reporting date. Current tax includes the Group's charge for any Pillar Two income taxes.
Deferred tax is provided using the balance sheet liability method, providing for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax liabilities are recognised unless they arise from the initial recognition (other than in a business combination) of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit. Deferred tax liabilities are not recognised to the extent they arise from the initial recognition of non-tax deductible goodwill. Deferred tax assets are recognised to the extent that there are future taxable temporary differences or it is probable that future taxable profit will be available against which the asset can be utilised. This requires judgements to be made in respect of the availability of future taxable income.
The Group applies the exception to recognising and disclosing information about deferred tax assets and liabilities related to Pillar Two income taxes, as provided in the amendments to IAS 12 ‘Income Taxes’ issued in May 2023.
No deferred tax asset or liability is recognised in respect of temporary differences associated with investments in subsidiaries and branches where the Group is able to control the timing of reversal of the temporary differences and it is probable that the temporary differences will not reverse in the foreseeable future.
F-9
The Group's deferred tax assets and liabilities are calculated using tax rates that are expected to apply in the period when the liability is settled or the asset realised based on tax rates that have been enacted or substantively enacted by the reporting date. Deferred tax liabilities relating to assets recognised because of a business combination which may qualify for intellectual property incentives are measured at the relevant statutory tax rate. Deferred tax assets and liabilities are offset in the Consolidated Statement of Financial Position if, and only if, the taxable entity has a legally enforceable right to set off current tax assets and liabilities, and the Deferred tax assets and liabilities relate to taxes levied by the same taxation authority on the same taxable entity.
Liabilities for uncertain tax positions require management to make judgements of potential exposures in relation to tax audit issues. Tax benefits are not recognised unless the tax positions will probably be accepted by the tax authorities. This is based upon management's interpretation of applicable laws and regulations and the expectation of how the tax authority will resolve the matter. Once considered probable of not being accepted, management reviews each material tax benefit and reflects the effect of the uncertainty in determining the related taxable result.
Liabilities for uncertain tax positions are measured using either the most likely amount or the expected value amount depending on which method the entity expects to better predict the resolution of the uncertainty.
Further details of the estimates and assumptions made in determining our recorded liability for transfer pricing contingencies and other tax contingencies are included in Note 30 to the Financial Statements from page 211.
Share-based payments
All plans have been classified as equity settled after assessment. The grant date fair value of the market-based performance elements of employee share plan awards is calculated using a modified Monte Carlo model, with other elements at market price. In accordance with IFRS 2 ‘Share-based Payment’, the resulting cost is recognised in profit on a straight-line basis over the vesting period of the awards. The value of the charge is adjusted to reflect expected and actual levels of awards vesting, except where the failure to vest is as a result of not meeting a market condition. Cancellations of equity instruments are treated as an acceleration of the vesting period and any outstanding charge is recognised in profit immediately.
Cash outflows relating to the purchase of shares by consolidated Employee Benefit Trusts (EBTs) relating to the vesting of share plans are recognised within financing activities. Cash outflows relating to the employer and employee taxes paid on vesting of share plans are recognised in operating activities as they relate to employee remuneration. The cash flows relating to replacement awards issued to employees as part of the Alexion acquisition are classified within investing activities, as they are part of the aggregate cash flows arising from obtaining control of the subsidiary.
Property, plant and equipment
The Group’s policy is to depreciate the difference between the cost of each item of Property, plant and equipment and its residual value over its estimated useful life on a straight-line basis. Assets under construction are not depreciated until the asset is available for use, at which point the asset is transferred into either Land and buildings or Plant and equipment, and depreciated over its estimated useful economic life.
Reviews are made annually of the estimated remaining lives and residual values of individual productive assets, taking account of commercial and technological obsolescence as well as normal wear and tear. It is impractical to calculate average asset lives exactly. However, the useful economic lives range from approximately
Leases
The Group’s lease arrangements are principally for property, most notably a portfolio of office premises and employee accommodation, and for a global car fleet, utilised primarily by our sales and marketing teams.
The lease liability and corresponding right-of-use asset arising from a lease are initially measured on a present value basis. Lease liabilities include the net present value of the following lease payments:
| > | fixed payments, less any lease incentives receivable |
| > | variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date |
| > | the exercise price of a purchase option if the Group is reasonably certain to exercise that option |
| > | payments of penalties for terminating the lease, if the lease term reflects the Group exercising that option, and |
| > | amounts expected to be payable by the Group under residual value guarantees. |
Right-of-use assets are measured at cost comprising the following:
| > | the amount of the initial measurement of lease liability |
| > | any lease payments made at or before the commencement date less any lease incentives received |
| > | any initial direct costs, and |
| > | restoration costs. |
Judgements made in calculating the lease liability include assessing whether arrangements contain a lease and determining the lease term. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. Property leases will often include an early termination or extension option to the lease term. Fleet management policies vary by jurisdiction and may include renewal of a lease until a measurement threshold, such as mileage, is reached. Extension and termination options have been considered when determining the lease term, along with all facts and circumstances that may create an economic incentive to exercise an extension option, or not exercise a termination option. Extension periods (or periods after termination options) are only included in the lease term if the lease is reasonably certain to be extended (or not terminated).
The lease payments are discounted using incremental borrowing rates, as in the majority of leases held by the Group the interest rate implicit in the lease is not readily identifiable. Calculating the discount rate is an estimate made in calculating the lease liability. This rate is the rate that the Group would have to pay to borrow the funds necessary to obtain an asset of similar value to the right-of-use asset in a similar economic environment with similar terms, security and conditions. To determine the incremental borrowing rate, the Group uses a risk-free interest rate adjusted for credit risk, adjusting for terms specific to the lease including term, country and currency.
The Group is exposed to potential future increases in variable lease payments that are based on an index or rate, which are initially measured as at the commencement date, with any future changes in the index or rate excluded from the lease liability until they take effect. When adjustments to lease payments based on an index or rate take effect, the lease liability is reassessed and adjusted against the right-of-use asset.
Lease payments are allocated between principal and finance cost. The finance cost is charged to the Consolidated Statement of Comprehensive Income over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period.
F-10
Payments associated with short-term leases of Property, plant and equipment and all leases of low-value assets are recognised on a straight-line basis as an expense in the Consolidated Statement of Comprehensive Income. Short-term leases are leases with a lease term of 12 months or less. Low-value leases are those where the underlying asset value, when new, is $
Contracts may contain both lease and non-lease components. The Group allocates the consideration in the contract to the lease and non-lease components based on their relative standalone prices.
Right-of-use assets are generally depreciated over the shorter of the asset's useful life and the lease term on a straight-line basis. If the Group is reasonably certain to exercise a purchase option, the right-of-use asset is depreciated over the underlying asset’s useful life. It is impractical to calculate average asset lives exactly. However, the total lives range from approximately
There are no material lease agreements under which the Group is a lessor.
Business combinations and goodwill
In assessing whether an acquired set of assets and activities is a business or an asset, management will first elect whether to apply an optional concentration test to simplify the assessment. Where the concentration test is applied, the acquisition will be treated as the acquisition of an asset if substantially all of the fair value of the gross assets acquired (excluding cash and cash equivalents, deferred tax assets, and related goodwill) is concentrated in a single asset or group of similar identifiable assets.
Where the concentration test is not applied, or is not met, a further assessment of whether the acquired set of assets and activities is a business will be performed.
The determination of whether an acquired set of assets and activities is a business or an asset can be judgemental, particularly if the target is not producing outputs. Management uses a number of factors to make this determination, which are primarily focused on whether the acquired set of assets and activities include substantive processes that mean the set is capable of being managed for the purpose of providing a return. Key determining factors include the stage of development of any assets acquired, the readiness and ability of the acquired set to produce outputs and the presence of key experienced employees capable of conducting activities required to develop or manufacture the assets. Typically, the specialised nature of many pharmaceutical assets and processes is such that until assets are substantively ready for production and promotion, there are not the required processes for a set of assets and activities to meet the definition of a business in IFRS 3 ‘Business Combinations’.
On the acquisition of a business, fair values are attributed to the identifiable assets and liabilities. Attributing fair values is a judgement. Contingent liabilities are also recorded at fair value unless the fair value cannot be measured reliably, in which case the value is subsumed into goodwill. Where fair values of acquired contingent liabilities cannot be measured reliably, the assumed contingent liability is not recognised but is disclosed in the same manner as other contingent liabilities.
Where not all of the equity of a subsidiary is acquired, the non-controlling interest is recognised either at fair value or at the non-controlling interest’s proportionate share of the net assets of the subsidiary, on a case-by-case basis. Put options over non-controlling interests are recognised as a financial liability, with a corresponding entry in either Retained earnings or against non-controlling interest reserves on a case-by-case basis.
The timing and amount of future contingent elements of consideration is an estimate. Contingent consideration, which may include development and launch milestones, revenue threshold milestones and revenue-based royalties, is fair valued at the date of acquisition using decision-tree analysis with key inputs including probability of success, consideration of potential delays and revenue projections based on the Group’s internal forecasts. Unsettled amounts of consideration are held at fair value within payables with changes in fair value recognised immediately in profit.
Goodwill is the difference between the fair value of the consideration and the fair value of net assets acquired.
Goodwill arising on acquisitions is capitalised and subject to an impairment review, both annually and when there is an indication that the carrying value may not be recoverable.
The Group’s policy up to and including 1997 was to eliminate Goodwill arising upon acquisitions against reserves. Under IFRS 1 ‘First-time Adoption of International Financial Reporting Standards’ and IFRS 3 ‘Business Combinations’, such Goodwill will remain eliminated against reserves.
Subsidiaries
A subsidiary is an entity controlled, directly or indirectly, by AstraZeneca PLC. Control is regarded as the exposure or rights to the variable returns of the entity when combined with the power to affect those returns. Control is normally evidenced by holding more than 50% of the share capital of the company, however other agreements may be in place that result in control where they give AstraZeneca finance decision-making authority over the relevant activities of the company.
The financial results of subsidiaries are consolidated from the date control is obtained until the date that control ceases.
Inventories
Inventories are stated at the lower of cost and net realisable value. The first in, first out or an average method of valuation is used. For finished goods and work in progress, cost includes directly attributable costs and certain overhead expenses (including depreciation). Selling expenses and certain other overhead expenses (principally central administration costs) are excluded. Net realisable value is determined as estimated selling price less all estimated costs of completion and costs to be incurred in selling and distribution.
Write-downs of inventory occur in the general course of business and are recognised in Cost of sales for launched or approved products and in Research and development expense for products in development.
Assets held for sale
Non-current assets are classified as Assets held for sale when their carrying amount is to be recovered principally through a sale transaction and a sale is considered highly probable. A sale is considered highly probable only when the appropriate level of management has committed to the sale.
Assets held for sale are stated at the lower of carrying amount and fair value less costs to sell. Where there is a partial transfer of a non-current asset to held for sale, an allocation of value is made between the current and non-current portions of the asset based on the relative value of the two portions, unless there is a methodology that better reflects the asset to be disposed of.
Assets held for sale are neither depreciated nor amortised.
Trade and other receivables
Financial assets included in Trade and other receivables are recognised initially at fair value. The Group holds the Trade receivables with the objective to collect the contractual cash flows and therefore measures them subsequently at amortised cost using the effective interest method, less any impairment, based on expected credit losses.
F-11
Trade receivables that are subject to debt factoring arrangements are derecognised if they meet the conditions for derecognition detailed in IFRS 9 ‘Financial Instruments’.
Trade and other payables
Financial liabilities included in Trade and other payables are recognised initially at fair value. Subsequent to initial recognition they are measured at amortised cost using the effective interest method. Contingent consideration payables are held at fair value within Level 3 of the fair value hierarchy as defined in Note 12.
Financial instruments
The Group’s financial instruments include Lease liabilities, Trade and other receivables and payables, liabilities for contingent consideration and put options under business combinations, and rights and obligations under employee benefit plans which are dealt with in specific accounting policies.
The Group’s other financial instruments include:
| > | Cash and cash equivalents |
| > | Fixed deposits |
| > | Other investments |
| > | Bank and other borrowings |
| > | Derivatives. |
Cash and cash equivalents
Cash and cash equivalents comprise cash in hand, current balances with banks and similar institutions, and highly liquid investments with maturities of three months or less when acquired. They are readily convertible into known amounts of cash and are held at amortised cost under the hold to collect classification, where they meet the hold to collect ‘solely payments of principal and interest’ test criteria under IFRS 9 ‘Financial Instruments’. Those not meeting these criteria are held at fair value through profit or loss. Cash and cash equivalents in the Consolidated Statement of Cash Flows include unsecured bank overdrafts at the balance sheet date where balances often fluctuate between a cash and overdraft position.
Fixed deposits
Fixed deposits, principally comprising funds held with banks and other financial institutions, are initially measured at fair value, plus direct transaction costs, and are subsequently measured at amortised cost using the effective interest method at each reporting date. Changes in carrying value are recognised in the Consolidated Statement of Comprehensive Income.
Other investments
Investments are classified as fair value through profit or loss (FVPL), unless the Group makes an irrevocable election at initial recognition for certain non-current equity investments to present changes in Other comprehensive income (FVOCI). If this election is made, there is no subsequent reclassification of fair value gains and losses to profit and loss following the derecognition of the investment.
Bank and other borrowings
The Group uses derivatives, principally interest rate swaps, to hedge the interest rate exposure inherent in a portion of its fixed interest rate debt. In such cases the Group will either designate the debt as FVPL when certain criteria are met or as the hedged item under a fair value hedge.
If the debt instrument is designated as FVPL, the debt is initially measured at fair value (with direct transaction costs being included in profit and loss as an expense) and is remeasured to fair value at each reporting date with changes in carrying value being recognised in profit and loss (along with changes in the fair value of the related derivative), with the exception of changes in the fair value of the debt instrument relating to own credit risk which are recorded in Other comprehensive income in accordance with IFRS 9 ‘Financial Instruments’. Such a designation has been made where this significantly reduces an accounting mismatch which would result from recognising gains and losses on different bases.
If the debt is designated as the hedged item under a fair value hedge, the debt is initially measured at fair value (with direct transaction costs being amortised over the life of the debt) and is remeasured for fair value changes in respect of the hedged risk at each reporting date with changes in carrying value being recognised in profit and loss (along with changes in the fair value of the related derivative).
If the debt is designated in a cash flow hedge, the debt is measured at amortised cost (with gains or losses taken to profit and loss and direct transaction costs being amortised over the life of the debt). The related derivative is remeasured for fair value changes at each reporting date with the portion of the gain or loss on the derivative that is determined to be an effective hedge recognised in Other comprehensive income. The amounts that have been recognised in Other comprehensive income are reclassified to profit and loss in the same period that the hedged forecast cash flows affect profit. The reclassification adjustment is included in Finance expense in the Consolidated Statement of Comprehensive Income.
Other interest-bearing loans are initially measured at fair value (with direct transaction costs being amortised over the life of the loan) and are subsequently measured at amortised cost using the effective interest method at each reporting date. Changes in carrying value are recognised in the Consolidated Statement of Comprehensive Income.
Derivatives
Derivatives are initially measured at fair value (with direct transaction costs being included in profit and loss as an expense) and are subsequently remeasured to fair value at each reporting date. Changes in carrying value of derivatives not designated in hedging relationships are recognised in profit and loss.
The Group has agreements with some bank counterparties whereby the parties agree to post cash collateral, for the benefit of the other, equivalent to the market valuation of all of the derivative positions above a predetermined threshold. Cash collateral received from counterparties is included within current Interest-bearing loans and borrowings within the Consolidated Statement of Financial Position. Cash collateral pledged to counterparties is recognised as a financial asset and is included in current Other investments within the Consolidated Statement of Financial Position. Cash collateral received is included in Movement in short-term borrowings within financing activities in the Consolidated Statement of Cash Flows. Cash collateral paid is included in Movements in short-term investments within investing activities in the Consolidated Statement of Cash Flows. The cash flow presentation of cash paid and received follows the Consolidated Statement of Financial Position presentation of the financial asset and financial liability that is recognised from posting the collateral.
Foreign currencies
Foreign currency transactions, being transactions denominated in a currency other than an individual Group entity’s functional currency, are translated into the relevant functional currencies of individual Group entities at average rates for the relevant monthly accounting periods, which approximate to actual rates.
F-12
Monetary assets and liabilities arising from foreign currency transactions are retranslated at exchange rates prevailing at the reporting date. Exchange gains and losses on loans and on short-term foreign currency borrowings and deposits are included within Finance expense. Exchange differences on all other foreign currency transactions are recognised in Operating profit in the individual Group entity’s accounting records.
Non-monetary items arising from foreign currency transactions are not retranslated in the individual Group entity’s accounting records.
In the Consolidated Financial Statements, income and expense items for Group entities with a functional currency other than US dollars are translated into US dollars at average exchange rates, which approximate to actual rates, for the relevant accounting periods. Assets and liabilities are translated at the US dollar exchange rates prevailing at the reporting date. Exchange differences arising on consolidation are recognised in Other comprehensive income.
If certain criteria are met, non-US dollar-denominated loans or derivatives are designated as net investment hedges of foreign operations. Exchange differences arising on retranslation of net investments, and of foreign currency loans which are designated in an effective net investment hedge relationship, are recognised in Other comprehensive income in the Consolidated Financial Statements. Foreign exchange derivatives hedging net investments in foreign operations are carried at fair value. Effective fair value movements are recognised in Other comprehensive income, with any ineffectiveness taken to profit. Gains and losses accumulated in the translation reserve will be recycled to profit and loss when the foreign operation is sold.
Provisions
Provisions are recognised when there is either a legal or constructive present obligation as a result of a past event, it is probable that an outflow of economic resources will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. If the effect of the time value of money is material, provisions are discounted at the relevant pre-tax discount rate. Where provisions are discounted, the increase in the provision resulting from the passage of time is recognised as a finance cost.
Litigation and environmental liabilities
AstraZeneca is involved in legal disputes, the settlement of which may involve cost to the Group. A provision is made where an adverse outcome is probable and associated costs, including related legal costs, can be estimated reliably. Determining the timing of recognition of when an adverse outcome is probable is considered a Key Judgement, refer to Note 30 to the Financial Statements on page 205.
Where it is considered that the Group is more likely than not to prevail, or in the extremely rare circumstances where the amount of the legal liability cannot be estimated reliably, legal costs involved in defending the claim are charged to the Consolidated Statement of Comprehensive Income as they are incurred.
Where it is considered that the Group has a valid contract which provides the right to reimbursement (from insurance or otherwise) of legal costs and/or all or part of any loss incurred or for which a provision has been established, the amount expected to be received is recognised as an asset only when it is virtually certain.
AstraZeneca is exposed to environmental liabilities relating to its past operations, principally in respect of soil and groundwater remediation costs. Provisions for these costs are made when there is a present obligation and where it is probable that expenditure on remedial work will be required and a reliable estimate can be made of the cost.
Restructuring
Restructuring costs are incurred in programmes that are planned and controlled by the Group which materially change either the scope of a business undertaken by the Group, or the manner in which that business is conducted.
A provision for restructuring costs is recognised when a detailed formal plan is in place and has either been announced to those affected or has started to be implemented. The general recognition criteria for provisions must also be met, as described in the Provisions policy.
Impairment
The carrying values of non-financial assets, other than Inventories and Deferred tax assets, are reviewed at least annually to determine whether there is any indication of impairment. For Goodwill, Intangible assets under development and for any other assets where such indication exists, the asset’s recoverable amount is estimated based on the greater of its value in use and its fair value less cost to sell. In assessing the recoverable amount, the estimated future cash flows, adjusted for the risks associated with the probability of success specific to each asset, as well as inflationary impacts, are discounted to their present value using a nominal discount rate that reflects current market assessments of the time value of money, the general risks affecting the pharmaceutical industry and other risks specific to each asset. For the purpose of impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash flows of other assets. Impairment losses are recognised immediately in the Consolidated Statement of Comprehensive Income.
Applicable accounting standards and interpretations issued but not yet adopted
At the date of authorisation of these Financial Statements, certain new accounting standards and amendments were in issue relating to the following standards and interpretations but not yet adopted by the Group:
| > | IFRS 18 ‘Presentation and Disclosure in Financial Statements’ is effective for accounting periods beginning on or after 1 January 2027 and will replace IAS 1 ‘Presentation of Financial Statements’. IFRS 18 sets out new presentation requirements for the Statement of Comprehensive Income, as well as more stringent and additional requirements on the aggregation, disaggregation and categorisation of income and expenses within the Statement of Comprehensive Income. Additionally, alternative performance measures included within the Annual Report which meet the definition of Management-defined Performance Measures are required to be disclosed within the Notes to the Financial Statements. |
| > | The Group is currently ass essing the impact of IFRS 18. It is expected that IFRS 18 will have a significant impact on the presentation of the Consolidated Statement of Comprehensive Income, and may require judgements around aggregation and disaggregation of certain balances, as well as requiring additional disclosures relating to Management-defined Performance Measures, aggregation and disaggregation, and EPS. IFRS 18 is yet to be endorsed by the UKEB and the Group is not seeking to early adopt the standard. |
In addition, the following amendment was issued but not yet adopted:
| > | amendments to IAS 21 'The Effects of Changes in Foreign Exchange Rates', effective for periods beginning on or after 1 January 2025 - endorsed by the UKEB on 15 July 2024. |
F-13
Notes to the Group Financial Statements
1 Revenue
Product Sales
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2024 |
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2023 |
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2022 |
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Emerging |
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Rest of |
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Emerging |
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Rest of |
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Emerging |
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Rest of |
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US |
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Markets |
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Europe |
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World |
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Total |
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US |
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Markets |
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Europe |
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World |
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Total |
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US |
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Markets |
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Europe |
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World |
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Total |
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$m |
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$m |
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$m |
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$m |
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$m |
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$m |
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$m |
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$m |
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$m |
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$m |
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$m |
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$m |
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$m |
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$m |
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$m |
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Oncology: |
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Tagrisso |
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Imfinzi |
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Calquence |
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Lynparza |
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Enhertu |
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– |
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– |
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– |
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Zoladex |
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Imjudo |
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– |
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– |
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– |
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Truqap |
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– |
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– |
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– |
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– |
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– |
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– |
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– |
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– |
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Orpathys |
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– |
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– |
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– |
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– |
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– |
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– |
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– |
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– |
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– |
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Others |
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Cardiovascular, Renal & Metabolism: |
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Farxiga |
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Brilinta |
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Crestor |
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Seloken/Toprol-XL |
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– |
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– |
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Lokelma |
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Roxadustat |
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– |
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– |
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– |
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– |
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– |
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– |
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– |
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– |
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– |
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Andexxa |
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– |
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– |
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Wainua |
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– |
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– |
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– |
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– |
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– |
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– |
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– |
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– |
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– |
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– |
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– |
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– |
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– |
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Others |
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Respiratory & Immunology: |
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Symbicort |
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Fasenra |
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Pulmicort |
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Breztri |
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Tezspire |
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– |
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– |
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– |
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– |
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Saphnelo |
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– |
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Airsupra |
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– |
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– |
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– |
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– |
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– |
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– |
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– |
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– |
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– |
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– |
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– |
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Others |
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Vaccines & Immune Therapies: |
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Synagis |
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(
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(
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Beyfortus |
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– |
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– |
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– |
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– |
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– |
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– |
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– |
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– |
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FluMist |
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COVID-19 mAbs |
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– |
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– |
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– |
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Others |
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– |
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– |
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– |
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– |
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Rare Disease: |
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Ultomiris |
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Soliris |
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Strensiq |
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Koselugo |
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– |
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Kanuma |
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Other: |
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Nexium |
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Others |
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Product Sales |
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Rebates and chargebacks in the US
The major market where estimates are seen as significant is the US. When invoicing Product Sales in the US, we estimate the rebates and chargebacks we expect to pay and we consider there to be a significant estimate associated with the rebates for Managed Care, Medicaid and Medicare Part D. The total adjustment in respect of prior year net US Product Sales in 2024 was
F-14
these relate to the Medicaid and state programmes with an adjustment in respect of prior year net US Product Sales in 2024 of
The adjustment in respect of the prior year net US Product Sales, excluding the Rare Disease therapy area in 2024, was
These values demonstrate the level of sensitivity; further meaningful sensitivity is not able to be provided due to the large volume of variables that contribute to the overall rebates, chargebacks, returns and other revenue accruals. These variables include assumptions in respect of aggregate future sales levels, segment mix and customers' contractual performance, and in addition for Managed Care, US Medicaid and Medicare Part D, the channel inventory levels, and assumptions related to lag time. These assumptions are built up on a product-by-product and customer-by-customer basis, taking into account specific contract provisions coupled with expected performance, and are then aggregated into a weighted average rebate accrual rate for each of our products. Accrual rates are reviewed and adjusted on an as-needed basis. There may be further adjustments when actual rebates are invoiced based on utilisation information submitted to AstraZeneca (in the case of contractual rebates) and claims/invoices are received (in the case of regulatory rebates and chargebacks).
Alliance Revenue
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2024 |
|
2023 |
|
2022 |
|
|
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$m |
|
$m |
|
$m |
|
|
Enhertu |
|
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Tezspire |
|
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Beyfortus |
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– |
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Vaxzevria : royalties |
|
– |
|
– |
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Other royalty income |
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|
Other Alliance Revenue |
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|
Collaboration Revenue
|
|
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2024 |
|
2023 |
|
2022 |
|
|
|
|
$m |
|
$m |
|
$m |
|
|
Lynparza : sales milestones |
|
|
|
– |
|
– |
|
|
Beyfortus : sales milestones |
|
|
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|
|
– |
|
|
Koselugo : sales milestones |
|
|
|
– |
|
– |
|
|
Farxiga : sales milestones |
|
|
|
|
|
– |
|
|
Lynparza : regulatory milestones |
|
– |
|
|
|
|
|
|
COVID-19 mAbs: licence fees |
|
– |
|
|
|
– |
|
|
Beyfortus : regulatory milestones |
|
– |
|
|
|
|
|
|
tralokinumab: sales milestones |
|
– |
|
|
|
|
|
|
Nexium : sale of rights |
|
– |
|
– |
|
|
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|
Other Collaboration Revenue |
|
– |
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2 Operating profit
Operating profit includes the following significant items:
Cost of sales
In 2024, Cost of sales includes a charge of $
Selling, general and administrative expense
In 2024, Selling, general and administrative expense includes a charge of $
In 2024, Selling, general and administrative expense also includes a charge of $
Research and development expense: Government grants
During the year $
Other operating income and expense
|
|
|
2024 |
|
2023 |
|
2022 |
|
|
|
|
$m |
|
$m |
|
$m |
|
|
Royalty income |
|
|
|
|
|
|
|
|
Gains on disposal of intangible assets |
|
|
|
|
|
|
|
|
Net (losses)/gains on disposal of other non-current assets |
|
(
|
|
|
|
|
|
|
Update to the contractual relationships for Beyfortus |
|
– |
|
|
|
– |
|
|
Other income 1 |
|
|
|
|
|
|
|
|
Other expense |
|
(
|
|
(
|
|
(
|
|
|
Other operating income and expense |
|
|
|
|
|
|
|
| 1 |
Other income in 2024 includes $
|
Gains on disposal of intangible assets in 2023 includes $
F-15
Net (losses)/gains on disposal of other non-current assets in 2022 includes a $
As part of the total consideration received in respect of the agreement to sell US rights to
Synagis
in 2019, $
Restructuring costs
In conjunction with the acquisition of Alexion in 2021, the enlarged Group initiated the Post Alexion Acquisition Group Review (PAAGR); a global restructuring programme aimed at integrating systems, structure and processes, optimising the global footprint and prioritising resource allocations and investments. During 2023, the Group identified all remaining activities and finalised the scope of the programme. During 2024, the Group has undertaken a further assessment of those planned activities. This included the commencement of work on the planned upgrade of the Group's Enterprise Resource Planning IT systems (Axial Project), which is expected to be substantially complete by the end of 2030. The Group has also continued to progress other legacy restructuring programmes.
During 2024, the Group has incurred $
Total restructuring costs in 2024 includes a net impairment charge to Property, plant and equipment of $
The tables below show the costs that have been charged in respect of restructuring programmes by cost category and type. Severance provisions are detailed in Note 21.
|
|
|
2024 |
|
2023 |
|
2022 |
|
|
|
|
$m |
|
$m |
|
$m |
|
|
Cost of sales |
|
|
|
|
|
|
|
|
Distribution expense |
|
– |
|
– |
|
|
|
|
Research and development expense |
|
|
|
|
|
|
|
|
Selling, general and administrative expense |
|
|
|
|
|
|
|
|
Other operating income and expense |
|
(
|
|
(
|
|
(
|
|
|
Total charge |
|
|
|
|
|
|
|
|
|
|
2024 |
|
2023 |
|
2022 |
|
|
|
|
$m |
|
$m |
|
$m |
|
|
Severance costs |
|
|
|
|
|
|
|
|
Accelerated depreciation and impairment charges |
|
|
|
|
|
|
|
|
Other 1 |
|
|
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|
|
|
|
|
Total charge |
|
|
|
|
|
|
|
| 1 |
Other costs are those incurred in designing and implementing the Group’s various restructuring initiatives. In 2024, Other costs included
$
|
Financial instruments
Included within Operating profit are the following net gains and losses on financial instruments:
|
|
|
2024 |
|
2023 |
|
2022 |
|
|
|
|
$m |
|
$m |
|
$m |
|
|
(Losses)/gains on forward foreign exchange contracts |
|
(
|
|
|
|
|
|
|
Losses on receivables and payables |
|
(
|
|
(
|
|
(
|
|
|
Total |
|
(
|
|
(
|
|
(
|
|
Impairment charges
Details of impairment charges for 2024, 2023 and 2022 are included in Notes 7, 8 and 10.
F-16
3 Finance income and expense
|
|
|
2024 |
|
2023 |
|
2022 |
|
|
|
|
$m |
|
$m |
|
$m |
|
|
Finance income |
|
|
|
|
|
|
|
|
Returns on deposits and equity securities |
|
|
|
|
|
|
|
|
Fair value gains on debt and interest rate swaps |
|
|
|
|
|
|
|
|
Interest income on income tax balances |
|
|
|
|
|
|
|
|
Total |
|
|
|
|
|
|
|
|
Finance expense |
|
|
|
|
|
|
|
|
Interest on debt, leases and other financing costs |
|
(
|
|
(
|
|
(
|
|
|
Net interest on post-employment defined benefit plan net liabilities (Note 22) |
|
(
|
|
(
|
|
(
|
|
|
Net exchange losses |
|
(
|
|
(
|
|
(
|
|
|
Discount unwind on contingent consideration arising from business combinations (Note 20) |
|
(
|
|
(
|
|
(
|
|
|
Discount unwind on other long-term liabilities 1 |
|
(
|
|
(
|
|
(
|
|
|
Fair value losses on debt and interest rate swaps |
|
(
|
|
(
|
|
– |
|
|
Interest expense on income tax balances |
|
(
|
|
(
|
|
(
|
|
|
Total |
|
(
|
|
(
|
|
(
|
|
|
Net finance expense |
|
(
|
|
(
|
|
(
|
|
| 1 |
Included within Discount unwind on other long-term liabilities is $
|
There was
Financial instruments
Included within Finance income and expense are the following net gains and losses on financial instruments:
|
|
|
2024 |
|
2023 |
|
2022 |
|
|
|
|
$m |
|
$m |
|
$m |
|
|
Interest and fair value adjustments in respect of debt designated at fair value through profit or loss, net of derivatives |
|
|
|
|
|
(
|
|
|
Interest and changes in carrying values of debt designated as hedged items in fair value hedges, net of derivatives |
|
(
|
|
– |
|
– |
|
|
Interest and fair value changes on fixed and short-term deposits, equity securities, other derivatives and tax balances |
|
|
|
|
|
|
|
|
Interest on debt, commercial paper, overdrafts and lease liabilities held at amortised cost |
|
(
|
|
(
|
|
(
|
|
The Group held derivatives that economically hedged a debt instrument designated at fair value through profit or loss. Both the derivatives and debt instrument matured in 2023. The Interest and fair value adjustments in respect of debt designated at fair value through profit or loss, net of derivatives, includes the following amounts related to these matured instruments; derivatives $
4 Taxation
Taxation charge/(credit) recognised in the Consolidated Statement of Comprehensive Income is as follows:
|
|
|
2024 |
|
2023 |
|
2022 |
|
|
|
|
$m |
|
$m |
|
$m |
|
|
Current tax |
|
|
|
|
|
|
|
|
Current year |
|
|
|
|
|
|
|
|
Pillar Two income tax charge |
|
|
|
– |
|
– |
|
|
Adjustment to prior years |
|
(
|
|
|
|
(
|
|
|
Total |
|
|
|
|
|
|
|
|
Deferred tax |
|
|
|
|
|
|
|
|
Origination and reversal of temporary differences |
|
(
|
|
(
|
|
(
|
|
|
Adjustment to prior years |
|
|
|
(
|
|
|
|
|
Total |
|
(
|
|
(
|
|
(
|
|
|
Taxation charge/(credit) recognised in the profit for the year |
|
|
|
|
|
(
|
|
Taxation (charge)/credit recognised in Other comprehensive income is as follows:
|
|
|
2024 |
|
2023 |
|
2022 |
|
|
|
|
$m |
|
$m |
|
$m |
|
|
Current and deferred tax |
|
|
|
|
|
|
|
|
Items that will not be reclassified to profit and loss: |
|
|
|
|
|
|
|
|
Remeasurement of the defined benefit liability |
|
(
|
|
|
|
(
|
|
|
Equity investments measured at fair value through Other comprehensive income |
|
(
|
|
(
|
|
|
|
|
Total |
|
(
|
|
|
|
(
|
|
|
Items that may be reclassified subsequently to profit and loss: |
|
|
|
|
|
|
|
|
Foreign exchange arising on designated liabilities in net investment hedges |
|
|
|
(
|
|
|
|
|
Fair value movement on cash flow hedges |
|
(
|
|
|
|
– |
|
|
Total |
|
|
|
(
|
|
|
|
|
Taxation (charge)/credit recognised in Other comprehensive income |
|
(
|
|
|
|
(
|
|
The reported tax rate in the year was
The income tax paid for the year was $
F-17
Taxation has been provided at current rates on the profits earned for the years covered by the Group Financial Statements. The 2024, 2023 and 2022 prior year current tax adjustments relate mainly to tax accrual to tax return adjustments and updates to provisions for tax contingencies.
The 2024 prior year deferred tax adjustment relates mainly to tax accrual to tax return adjustments and updates to provisions for tax contingencies. The 2023 prior year deferred tax adjustment relates mainly to tax accrual to tax return adjustments and adjustments to the recognition of deferred tax assets. The 2022 prior year deferred tax adjustments relate mainly to tax accrual to tax return adjustments and updates to provisions for tax contingencies.
To the extent that dividends remitted from overseas subsidiaries, joint ventures and associates are expected to result in additional taxes, appropriate amounts have been provided for. Unremitted earnings or differences in the carrying value and tax basis of investments may be liable to additional taxes if distributed as dividends or on a liquidation event. Deferred tax is provided for such differences in relation to Group entities where management is intending to remit earnings in the foreseeable future. The aggregate amount of gross temporary differences associated with investments in subsidiaries, partnerships and branches for which deferred tax liabilities have not been recognised totalled approximately $
Factors affecting future tax charges
As a group with worldwide operations, AstraZeneca is subject to several factors that may affect future tax charges, principally the levels and mix of profitability in different jurisdictions, transfer pricing regulations, tax rates imposed and tax regime reforms.
Tax reconciliation to UK statutory rate
The table below reconciles the UK statutory tax charge to the Group’s total tax charge/(credit):
|
|
|
2024 |
|
2023 |
|
2022 |
|
|
|
|
$m |
|
$m |
|
$m |
|
|
Profit before tax |
|
|
|
|
|
|
|
|
Notional taxation charge at UK corporation tax rate of
|
|
|
|
|
|
|
|
|
Differences in effective overseas tax rates 1 |
|
(
|
|
(
|
|
(
|
|
|
Deferred tax credit relating to change in tax rates 2 |
|
(
|
|
(
|
|
(
|
|
|
Unrecognised deferred tax asset 3 |
|
|
|
|
|
|
|
|
Items not deductible for tax purposes |
|
|
|
|
|
|
|
|
Intellectual Property incentive regimes |
|
(
|
|
(
|
|
(
|
|
|
Pillar Two income taxes |
|
|
|
– |
|
– |
|
|
Other items 4 |
|
(
|
|
(
|
|
(
|
|
|
Adjustments to prior periods 5 |
|
(
|
|
(
|
|
(
|
|
|
Total tax charge/(credit) for the year |
|
|
|
|
|
(
|
|
| 1 |
Includes the impact of the reversal of a $
|
AstraZeneca is domiciled in the UK but operates in other countries where the tax rates and laws are different to those in the UK. The impact on differences in effective overseas tax rates on the Group’s overall tax charge is noted above. Profits arising from our manufacturing operation in Puerto Rico are granted special status and are taxed at a reduced rate compared with the normal rate of tax in that territory under a tax incentive grant continuing until 2031. The Group receives intellectual property incentives in certain jurisdictions, resulting in a reduction to the tax charge in the Consolidated Statement of Comprehensive Income of $
F-18
Deferred tax
The total movement in the net deferred tax balance in the year was $
|
|
|
Intangibles, |
|
Elimination of |
|
|
|
Losses and |
|
|
|
|
|
|
|
|
|
|
Property, plant |
|
unrealised profit |
|
Untaxed |
|
tax credits |
|
Accrued |
|
|
|
|
|
|
|
|
and equipment |
|
on inventory |
|
reserves |
1 |
carried forward |
|
expenses |
|
Other |
2 |
Total |
|
|
|
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
|
Net deferred tax balance at 1 January 2022 |
|
(
|
|
|
|
(
|
|
|
|
|
|
|
|
(
|
|
|
Income statement 3 |
|
|
|
|
|
|
|
(
|
|
|
|
|
|
|
|
|
Other comprehensive income |
|
|
|
– |
|
– |
|
– |
|
– |
|
(
|
|
(
|
|
|
Equity |
|
– |
|
– |
|
– |
|
– |
|
– |
|
|
|
|
|
|
Exchange |
|
|
|
(
|
|
|
|
(
|
|
|
|
(
|
|
(
|
|
|
Net deferred tax balance at 31 December 2022 |
|
(
|
|
|
|
(
|
|
|
|
|
|
|
|
|
|
|
Income statement 3 |
|
|
|
|
|
|
|
(
|
|
(
|
|
(
|
|
|
|
|
Other comprehensive income |
|
(
|
|
– |
|
– |
|
– |
|
– |
|
|
|
|
|
|
Equity |
|
– |
|
– |
|
– |
|
– |
|
– |
|
(
|
|
(
|
|
|
Additions and disposals |
|
(
|
|
– |
|
– |
|
|
|
– |
|
(
|
|
|
|
|
Exchange |
|
(
|
|
(
|
|
(
|
|
|
|
|
|
(
|
|
(
|
|
|
Net deferred tax balance at 31 December 2023 |
|
(
|
|
|
|
(
|
|
|
|
|
|
|
|
|
|
|
Income statement |
|
|
|
|
|
(
|
|
|
|
|
|
(
|
|
|
|
|
Other comprehensive income |
|
|
|
– |
|
– |
|
– |
|
– |
|
(
|
|
(
|
|
|
Equity |
|
– |
|
– |
|
– |
|
– |
|
– |
|
(
|
|
(
|
|
|
Additions and disposals |
|
(
|
|
– |
|
– |
|
|
|
|
|
(
|
|
(
|
|
|
Exchange |
|
|
|
(
|
|
|
|
(
|
|
(
|
|
(
|
|
(
|
|
|
Net deferred tax balance at 31 December 2024⁴ |
|
(
|
5 |
|
|
(
|
|
|
|
|
|
|
|
|
|
| 1 | Untaxed reserves relate to taxable profits where the tax liability is deferred to later periods. |
The net deferred tax balance, before the offset of balances within countries, consists of:
|
|
|
Intangibles, |
|
Elimination of |
|
|
|
Losses and |
|
|
|
|
|
|
|
|
|
|
Property, plant |
|
unrealised profit |
|
Untaxed |
|
tax credits |
|
Accrued |
|
|
|
|
|
|
|
|
and equipment |
|
on inventory |
|
reserves |
|
carried forward |
|
expenses |
|
Other |
1 |
Total |
|
|
|
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
|
Deferred tax assets at 31 December 2022 |
|
|
|
|
|
– |
|
|
|
|
|
|
|
|
|
|
Deferred tax liabilities at 31 December 2022 |
|
(
|
|
(
|
|
(
|
|
(
|
|
(
|
|
(
|
|
(
|
|
|
Net deferred tax balance at 31 December 2022 |
|
(
|
|
|
|
(
|
|
|
|
|
|
|
|
|
|
|
Deferred tax assets at 31 December 2023 |
|
|
|
|
|
– |
|
|
|
|
|
|
|
|
|
|
Deferred tax liabilities at 31 December 2023 |
|
(
|
|
– |
|
(
|
|
(
|
|
(
|
|
(
|
|
(
|
|
|
Net deferred tax balance at 31 December 2023 |
|
(
|
|
|
|
(
|
|
|
|
|
|
|
|
|
|
|
Deferred tax assets at 31 December 2024 |
|
|
|
|
|
– |
|
|
|
|
|
|
|
|
|
|
Deferred tax liabilities at 31 December 2024 |
|
(
|
|
– |
|
(
|
|
(
|
|
(
|
|
(
|
|
(
|
|
|
Net deferred tax balance at 31 December 2024 |
|
(
|
|
|
|
(
|
|
|
|
|
|
|
|
|
|
| 1 | The Group revised its presentation of deferred taxes on pension and post-retirement benefits in 2024 to present this within Other. |
Analysed in the Consolidated Statement of Financial Position, after offset of balances within countries, as follows:
|
|
|
2024 |
|
2023 |
|
2022 |
|
|
|
|
$m |
|
$m |
|
$m |
|
|
Deferred tax assets |
|
|
|
|
|
|
|
|
Deferred tax liabilities |
|
(
|
|
(
|
|
(
|
|
|
Net deferred tax balance |
|
|
|
|
|
|
|
F-19
Unrecognised deferred tax assets
Deferred tax assets (DTA) of $
|
|
|
2024 |
|
2024 |
|
2023 |
|
2023 |
|
2022 |
|
2022 |
|
|
|
|
Temporary |
|
Unrecognised |
|
Temporary |
|
Unrecognised |
|
Temporary |
|
Unrecognised |
|
|
|
|
differences |
|
DTA |
|
differences |
|
DTA |
|
differences |
|
DTA |
|
|
|
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
|
Temporary differences expiring: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Within 10 years |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
More than 10 years |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Indefinite |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax credits and State tax losses expiring: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Within 10 years |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
More than 10 years |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Indefinite |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
5 Earnings per $0.25 Ordinary Share
|
|
|
|
2024 |
|
|
2023 |
|
|
2022 |
|
|
Profit for the year attributable to equity holders ($m) |
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per Ordinary Share |
|
|
$
|
|
|
$
|
|
|
$
|
|
|
Diluted earnings per Ordinary Share |
|
|
$
|
|
|
$
|
|
|
$
|
|
|
Weighted average number of Ordinary Shares in issue for basic earnings (millions) |
|
|
|
|
|
|
|
|
|
|
|
Dilutive impact of share options outstanding (millions) |
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted average number of Ordinary Shares in issue (millions) |
|
|
|
|
|
|
|
|
|
|
The earnings figures used in the calculations above are post-tax. The weighted average number of Ordinary Shares in issue is calculated by taking the number of Ordinary Shares outstanding each day weighted by the number of days that those shares were outstanding.
6 Segment information
The Group has reviewed its assessment of reportable segments under IFRS 8 ‘Operating Segments’ and concluded that the Group continues to have
This determination is considered to be a Key Judgement and this judgement has been taken with reference to the following factors:
1 The level of integration across the different functions of the Group’s pharmaceutical business:
AstraZeneca is engaged in a single business activity of pharmaceuticals and the Group does not have multiple operating segments. AstraZeneca’s pharmaceuticals business consists of the discovery and development of new products, which are then manufactured, marketed and sold. All of these functional activities take place (and are managed) globally on a highly integrated basis. These individual functional areas are not managed separately.
2 The identification of the Chief Operating Decision Maker (CODM) and the nature and extent of the financial information reviewed by the CODM:
The SET, established and chaired by the CEO, is the vehicle through which the CEO exercises the authority delegated to him from the Board for the management, development and performance of AstraZeneca as a whole. It is considered that the SET is AstraZeneca’s Chief Operating Decision Making body (as defined by IFRS 8). The operation of the SET is principally driven by the management of the Commercial operations, R&D, manufacturing and supply and enabling functions. All significant operating decisions are undertaken by the SET. While members of the SET have responsibility for implementation of decisions in their respective areas, operating decision making is at SET level as a whole. Where necessary, these are implemented through cross-functional sub-committees that consider the Group-wide impact of a new decision. For example, product launch decisions would be initially considered by the SET and, on approval, passed to an appropriate sub team for implementation. The ability of the enterprise to develop, produce, deliver and commercialise a wide range of pharmaceutical products are central to the SET decision-making process.
In assessing performance, the SET reviews financial information on an integrated basis for the Group as a whole, substantially in the form of, and on the same basis as, the Group’s IFRS Financial Statements. The high upfront cost of discovering and developing new products, coupled with the relatively insignificant and stable unit cost of production, means that there is not the clear link that exists in many manufacturing businesses between the revenue generated on an individual product sale and the associated cost and hence margin generated on a product. Consequently, the profitability of individual drugs or classes of drugs is not considered a key measure of performance for the business and is not monitored by the SET. The focus of additional financial information reviewed is at brand sales and Gross Margin level within specific geographies. Expenditure analysis is completed for the science units, operations and enabling functions; there is no allocation of these centrally-managed Group costs to the individual product or brands. The bonus of SET members’ continues to be derived from the Group scorecard outcome as discussed in our Directors’ Remuneration Report.
3 How resources are allocated:
Resources are allocated on a Group-wide basis according to need. In particular, capital expenditure, in-licensing, and R&D resources are allocated between activities on merit, based on overall therapeutic considerations and strategy under the aegis of the Group’s Early-Stage Product Committees and Late-Stage Product Committees.
F-20
Geographic areas
The following table shows information for Total Revenue by geographic area and material countries. Product Sales by geographic area are included in the country/region where the legal entity resides and from which those sales were made. The additional tables show the Operating profit and Profit before tax made by companies located in that area, together with Non-current assets, Total assets, Assets acquired, Net operating assets, and Property, plant and equipment owned by the same companies.
|
|
|
|
|
|
|
Total Revenue |
|
|
|
|
2024 |
|
2023 |
|
2022 |
|
|
|
|
$m |
|
$m |
|
$m |
|
|
UK |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rest of Europe |
|
|
|
|
|
|
|
|
France |
|
|
|
|
|
|
|
|
Germany |
|
|
|
|
|
|
|
|
Italy |
|
|
|
|
|
|
|
|
Spain |
|
|
|
|
|
|
|
|
Sweden |
|
|
|
|
|
|
|
|
Others |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Americas |
|
|
|
|
|
|
|
|
Canada |
|
|
|
|
|
|
|
|
US |
|
|
|
|
|
|
|
|
Others |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asia, Africa & Australasia |
|
|
|
|
|
|
|
|
Australia |
|
|
|
|
|
|
|
|
China |
|
|
|
|
|
|
|
|
Japan |
|
|
|
|
|
|
|
|
Others |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Revenue |
|
|
|
|
|
|
|
Total Revenue outside of the UK totalled $
|
|
|
|
|
Operating profit/(loss) |
|
|
|
Profit/(loss) before tax |
|
||||
|
|
|
2024 |
|
2023 |
|
2022 |
|
2024 |
|
2023 |
|
2022 |
|
|
|
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
|
UK |
|
|
|
|
|
|
|
|
|
(
|
|
|
|
|
Rest of Europe |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Americas |
|
|
|
|
|
(
|
|
|
|
|
|
(
|
|
|
Asia, Africa & Australasia |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current assets |
1, 2 |
|
|
|
|
Total assets |
|
||
|
|
|
2024 |
|
2023 |
|
2022 |
|
2024 |
|
2023 |
|
2022 |
|
|
|
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
|
UK |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rest of Europe |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Americas |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asia, Africa & Australasia |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets acquired |
3 |
|
|
Net operating assets |
4 |
||
|
|
|
2024 |
|
2023 |
|
2022 |
|
2024 |
|
2023 |
|
2022 |
|
|
|
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
|
UK |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rest of Europe |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Americas |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asia, Africa & Australasia |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
| 1 | Non-current assets exclude Deferred tax assets and Derivative financial instruments. |
| 2 |
In 2023, the Group revised the presentation of Non-current assets to exclude certain financial assets and post-employment benefit assets which previously had been included in this disclosure. This resulted in a decrease in 2022 of
$
|
| 3 | Included in Assets acquired are those assets that are expected to be used during more than one period (Property, plant and equipment, Goodwill and Intangible assets) and include those acquired through business combinations (Note 27). |
| 4 | Net operating assets exclude short-term investments, cash, short-term borrowings, loans, Derivative financial instruments, Retirement benefit obligations and non-operating receivables and payables. |
|
|
|
|
|
Property, plant and equipment |
|
||
|
|
|
2024 |
|
2023 |
|
2022 |
|
|
|
|
$m |
|
$m |
|
$m |
|
|
UK |
|
|
|
|
|
|
|
|
Ireland |
|
|
|
|
|
|
|
|
Sweden |
|
|
|
|
|
|
|
|
US |
|
|
|
|
|
|
|
|
Rest of the world |
|
|
|
|
|
|
|
|
Continuing operations |
|
|
|
|
|
|
|
F-21
Geographic markets
The table below shows Product Sales in each geographic market in which customers are located.
|
|
|
2024 |
|
2023 |
|
2022 |
|
|
|
|
$m |
|
$m |
|
$m |
|
|
UK |
|
|
|
|
|
|
|
|
Rest of Europe |
|
|
|
|
|
|
|
|
The Americas |
|
|
|
|
|
|
|
|
Asia, Africa & Australasia |
|
|
|
|
|
|
|
|
Continuing operations |
|
|
|
|
|
|
|
Product Sales are recognised when control of the goods has been transferred to a third party. A significant proportion of this is upon delivery of the products to wholesalers.
7 Property, plant and equipment
|
|
|
|
|
|
|
Assets in |
|
Total Property, |
|
|
|
|
Land and |
|
Plant and |
|
course of |
|
plant and |
|
|
|
|
buildings |
|
equipment |
|
construction |
|
equipment |
|
|
|
|
$m |
|
$m |
|
$m |
|
$m |
|
|
Cost |
|
|
|
|
|
|
|
|
|
|
At 1 January 2022 |
|
|
|
|
|
|
|
|
|
|
Capital expenditure |
|
|
|
|
|
|
|
|
|
|
Transfer of assets into use |
|
|
|
|
|
(
|
|
– |
|
|
Transfer of Assets held for sale (Note 18) |
|
(
|
|
(
|
|
– |
|
(
|
|
|
Disposals and other movements |
|
(
|
|
(
|
|
|
|
(
|
|
|
Exchange adjustments |
|
(
|
|
(
|
|
(
|
|
(
|
|
|
At 31 December 2022 |
|
|
|
|
|
|
|
|
|
|
Additions through business combinations (Note 27) |
|
|
|
|
|
– |
|
|
|
|
Capital expenditure |
|
|
|
|
|
|
|
|
|
|
Transfer of assets into use |
|
|
|
|
|
(
|
|
– |
|
|
Disposals and other movements |
|
(
|
|
(
|
|
(
|
|
(
|
|
|
Exchange adjustments |
|
|
|
|
|
|
|
|
|
|
At 31 December 2023 |
|
|
|
|
|
|
|
|
|
|
Additions through business combinations (Note 27) |
|
|
|
|
|
|
|
|
|
|
Capital expenditure |
|
|
|
|
|
|
|
|
|
|
Transfer of assets into use |
|
|
|
|
|
(
|
|
– |
|
|
Disposals and other movements |
|
(
|
|
(
|
|
(
|
|
(
|
|
|
Exchange adjustments |
|
(
|
|
(
|
|
(
|
|
(
|
|
|
At 31 December 2024 |
|
|
|
|
|
|
|
|
|
|
Depreciation and impairment |
|
|
|
|
|
|
|
|
|
|
At 1 January 2022 |
|
|
|
|
|
– |
|
|
|
|
Depreciation charge for the year |
|
|
|
|
|
– |
|
|
|
|
Impairment charge/(reversal) |
|
|
|
|
|
(
|
|
– |
|
|
Transferred to Assets held for sale (Note 18) |
|
(
|
|
(
|
|
– |
|
(
|
|
|
Disposals and other movements |
|
(
|
|
(
|
|
|
|
(
|
|
|
Exchange adjustments |
|
(
|
|
(
|
|
– |
|
(
|
|
|
At 31 December 2022 |
|
|
|
|
|
– |
|
|
|
|
Depreciation charge for the year |
|
|
|
|
|
– |
|
|
|
|
Impairment charge |
|
|
|
|
|
– |
|
|
|
|
Disposals and other movements |
|
(
|
|
(
|
|
– |
|
(
|
|
|
Exchange adjustments |
|
|
|
|
|
– |
|
|
|
|
At 31 December 2023 |
|
|
|
|
|
– |
|
|
|
|
Depreciation charge for the year |
|
|
|
|
|
– |
|
|
|
|
Impairment charge |
|
– |
|
(
|
|
|
|
|
|
|
Disposals and other movements |
|
(
|
|
(
|
|
(
|
|
(
|
|
|
Exchange adjustments |
|
(
|
|
(
|
|
– |
|
(
|
|
|
At 31 December 2024 |
|
|
|
|
|
– |
|
|
|
|
Net book value |
|
|
|
|
|
|
|
|
|
|
At 31 December 2022 |
|
|
|
|
|
|
|
|
|
|
At 31 December 2023 |
|
|
|
|
|
|
|
|
|
|
At 31 December 2024 |
|
|
|
|
|
|
|
|
|
|
|
|
2024 |
|
2023 |
|
2022 |
|
|
|
|
$m |
|
$m |
|
$m |
|
|
The net book value of land and buildings comprised: |
|
|
|
|
|
|
|
|
Freeholds |
|
|
|
|
|
|
|
|
Leaseholds |
|
|
|
|
|
|
|
F-22
8 Leases
Right-of-use assets
|
|
|
|
|
|
|
|
|
Total |
|
|
|
|
Land and |
|
Motor |
|
|
|
Right-of-use |
|
|
|
|
buildings |
|
vehicles |
|
Other |
|
assets |
|
|
|
|
$m |
|
$m |
|
$m |
|
$m |
|
|
Cost |
|
|
|
|
|
|
|
|
|
|
At 1 January 2022 |
|
|
|
|
|
|
|
|
|
|
Additions through business combinations (Note 27) |
|
|
|
– |
|
– |
|
|
|
|
Additions – separately acquired |
|
|
|
|
|
|
|
|
|
|
Disposals and other movements |
|
(
|
|
(
|
|
(
|
|
(
|
|
|
Exchange adjustments |
|
(
|
|
(
|
|
(
|
|
(
|
|
|
At 31 December 2022 |
|
|
|
|
|
|
|
|
|
|
Additions through business combinations (Note 27) |
|
|
|
– |
|
– |
|
|
|
|
Additions – separately acquired |
|
|
|
|
|
|
|
|
|
|
Disposals and other movements |
|
(
|
|
(
|
|
(
|
|
(
|
|
|
Exchange adjustments |
|
|
|
|
|
|
|
|
|
|
At 31 December 2023 |
|
|
|
|
|
|
|
|
|
|
Additions through business combinations (Note 27) |
|
|
|
– |
|
– |
|
|
|
|
Additions – separately acquired |
|
|
|
|
|
|
|
|
|
|
Disposals and other movements |
|
(
|
|
(
|
|
(
|
|
(
|
|
|
Exchange adjustments |
|
(
|
|
(
|
|
(
|
|
(
|
|
|
At 31 December 2024 |
|
|
|
|
|
|
|
|
|
|
Depreciation and impairment |
|
|
|
|
|
|
|
|
|
|
At 1 January 2022 |
|
|
|
|
|
|
|
|
|
|
Depreciation charge for the year |
|
|
|
|
|
|
|
|
|
|
Impairment charge |
|
|
|
– |
|
– |
|
|
|
|
Disposals and other movements |
|
(
|
|
(
|
|
(
|
|
(
|
|
|
Exchange adjustments |
|
(
|
|
(
|
|
(
|
|
(
|
|
|
At 31 December 2022 |
|
|
|
|
|
|
|
|
|
|
Depreciation charge for the year |
|
|
|
|
|
|
|
|
|
|
Impairment charge |
|
|
|
– |
|
– |
|
|
|
|
Disposals and other movements |
|
(
|
|
(
|
|
(
|
|
(
|
|
|
Exchange adjustments |
|
|
|
|
|
– |
|
|
|
|
At 31 December 2023 |
|
|
|
|
|
|
|
|
|
|
Depreciation charge for the year |
|
|
|
|
|
|
|
|
|
|
Impairment charge |
|
|
|
– |
|
– |
|
|
|
|
Disposals and other movements |
|
(
|
|
(
|
|
(
|
|
(
|
|
|
Exchange adjustments |
|
(
|
|
(
|
|
(
|
|
(
|
|
|
At 31 December 2024 |
|
|
|
|
|
|
|
|
|
|
Net book value |
|
|
|
|
|
|
|
|
|
|
At 31 December 2022 |
|
|
|
|
|
|
|
|
|
|
At 31 December 2023 |
|
|
|
|
|
|
|
|
|
|
At 31 December 2024 |
|
|
|
|
|
|
|
|
|
Lease liabilities
|
|
|
2024 |
|
2023 |
|
2022 |
|
|
|
|
$m |
|
$m |
|
$m |
|
|
The present value of lease liabilities is as follows: |
|
|
|
|
|
|
|
|
Within one year |
|
(
|
|
(
|
|
(
|
|
|
Later than one year and not later than five years |
|
(
|
|
(
|
|
(
|
|
|
Later than five years |
|
(
|
|
(
|
|
(
|
|
|
Total lease liabilities |
|
(
|
|
(
|
|
(
|
|
The interest expense on lease liabilities included within Finance expense was $
The total cash outflow for leases in 2024 was $
The Group has entered into lease contracts that have not yet commenced. The nominal value of estimated future lease payments under these lease contracts approximates $
In 2022 the Group entered into a sale and leaseback agreement in relation to the Waltham R&D site in MA, US. Prior to the sale, the carrying value of the Property, plant and equipment was $
F-23
9 Goodwill
|
|
|
2024 |
|
2023 |
|
2022 |
|
|
|
|
$m |
|
$m |
|
$m |
|
|
Cost |
|
|
|
|
|
|
|
|
At 1 January |
|
|
|
|
|
|
|
|
Additions through business combinations (Note 27) |
|
|
|
|
|
|
|
|
Exchange and other adjustments |
|
(
|
|
|
|
(
|
|
|
At 31 December |
|
|
|
|
|
|
|
|
Amortisation and impairment losses |
|
|
|
|
|
|
|
|
At 1 January |
|
|
|
|
|
|
|
|
Exchange and other adjustments |
|
(
|
|
|
|
(
|
|
|
At 31 December |
|
|
|
|
|
|
|
|
Net book value |
|
|
|
|
|
|
|
|
At 31 December |
|
|
|
|
|
|
|
Goodwill is tested for impairment at the operating segment level, this being the level at which goodwill is monitored for internal management purposes. As detailed in Note 6, the Group does not have multiple operating segments and is engaged in a single business activity of pharmaceuticals.
Recoverable amount is determined on a fair value less costs to sell basis using the market value of the Company’s outstanding Ordinary Shares. Our market capitalisation is compared to the book value of the Group’s net assets and this indicates a significant surplus at 31 December 2024 (and 31 December 2023 and 31 December 2022).
10 Intangible assets
|
|
|
Product, |
|
|
|
Software |
|
|
|
|
|
|
marketing and |
|
Other |
|
development |
|
|
|
|
|
|
distribution rights |
|
intangibles |
|
costs |
|
Total |
|
|
|
|
$m |
|
$m |
|
$m |
|
$m |
|
|
Cost |
|
|
|
|
|
|
|
|
|
|
At 1 January 2022 |
|
|
|
|
|
|
|
|
|
|
Additions through business combinations (Note 27) |
|
– |
|
|
|
– |
|
|
|
|
Additions – separately acquired |
|
|
|
|
|
|
|
|
|
|
Disposals |
|
(
|
|
(
|
|
(
|
|
(
|
|
|
Exchange and other adjustments |
|
(
|
|
(
|
|
(
|
|
(
|
|
|
At 31 December 2022 |
|
|
|
|
|
|
|
|
|
|
Additions through business combinations (Note 27) |
|
|
|
|
|
– |
|
|
|
|
Additions – separately acquired |
|
|
|
|
|
|
|
|
|
|
Disposals |
|
(
|
|
– |
|
(
|
|
(
|
|
|
Exchange and other adjustments |
|
|
|
|
|
|
|
|
|
|
At 31 December 2023 |
|
|
|
|
|
|
|
|
|
|
Additions through business combinations (Note 27) |
|
|
|
|
|
– |
|
|
|
|
Additions – separately acquired |
|
|
|
|
|
|
|
|
|
|
Disposals |
|
(
|
|
– |
|
(
|
|
(
|
|
|
Exchange and other adjustments |
|
(
|
|
(
|
|
(
|
|
(
|
|
|
At 31 December 2024 |
|
|
|
|
|
|
|
|
|
|
Amortisation and impairment losses |
|
|
|
|
|
|
|
|
|
|
At 1 January 2022 |
|
|
|
|
|
|
|
|
|
|
Amortisation for year |
|
|
|
|
|
|
|
|
|
|
Impairment charges |
|
|
|
|
|
– |
|
|
|
|
Impairment reversals |
|
(
|
|
– |
|
(
|
|
(
|
|
|
Disposals |
|
(
|
|
(
|
|
(
|
|
(
|
|
|
Exchange and other adjustments |
|
(
|
|
(
|
|
(
|
|
(
|
|
|
At 31 December 2022 |
|
|
|
|
|
|
|
|
|
|
Amortisation for year |
|
|
|
|
|
|
|
|
|
|
Impairment charges |
|
|
|
– |
|
– |
|
|
|
|
Disposals |
|
(
|
|
– |
|
(
|
|
(
|
|
|
Exchange and other adjustments |
|
|
|
|
|
|
|
|
|
|
At 31 December 2023 |
|
|
|
|
|
|
|
|
|
|
Amortisation for year |
|
|
|
|
|
|
|
|
|
|
Impairment charges |
|
|
|
|
|
|
|
|
|
|
Impairment reversals |
|
(
|
|
– |
|
– |
|
(
|
|
|
Disposals |
|
(
|
|
– |
|
(
|
|
(
|
|
|
Exchange and other adjustments |
|
(
|
|
(
|
|
(
|
|
(
|
|
|
At 31 December 2024 |
|
|
|
|
|
|
|
|
|
|
Net book value |
|
|
|
|
|
|
|
|
|
|
At 31 December 2022 |
|
|
|
|
|
|
|
|
|
|
At 31 December 2023 |
|
|
|
|
|
|
|
|
|
|
At 31 December 2024 |
|
|
|
|
|
|
|
|
|
F-24
Other intangibles consist mainly of research and device technologies and the Alexion brand name. Included within Software development costs are assets currently in development that will commence amortisation when ready for use.
Included within Additions − separately acquired are amounts of $
Amortisation charges are recognised in the Consolidated Statement of Comprehensive Income as follows:
|
|
|
Product, |
|
|
|
Software |
|
|
|
|
|
|
marketing and |
|
Other |
|
development |
|
|
|
|
|
|
distribution rights |
|
intangibles |
|
costs |
|
Total |
|
|
|
|
$m |
|
$m |
|
$m |
|
$m |
|
|
Year ended 31 December 2022 |
|
|
|
|
|
|
|
|
|
|
Cost of sales |
|
|
|
– |
|
– |
|
|
|
|
Research and development expense |
|
– |
|
|
|
– |
|
|
|
|
Selling, general and administrative expense |
|
|
|
|
|
|
|
|
|
|
Total |
|
|
|
|
|
|
|
|
|
|
Year ended 31 December 2023 |
|
|
|
|
|
|
|
|
|
|
Cost of sales |
|
|
|
– |
|
– |
|
|
|
|
Research and development expense |
|
– |
|
|
|
– |
|
|
|
|
Selling, general and administrative expense |
|
|
|
|
|
|
|
|
|
|
Total |
|
|
|
|
|
|
|
|
|
|
Year ended 31 December 2024 |
|
|
|
|
|
|
|
|
|
|
Cost of sales |
|
|
|
|
|
– |
|
|
|
|
Research and development expense |
|
|
|
|
|
– |
|
|
|
|
Selling, general and administrative expense |
|
|
|
|
|
|
|
|
|
|
Total |
|
|
|
|
|
|
|
|
|
Net impairment charges are recognised in the Consolidated Statement of Comprehensive Income as follows:
|
|
|
Product, |
|
|
|
Software |
|
|
|
|
|
|
marketing and |
|
Other |
|
development |
|
|
|
|
|
|
distribution rights |
|
intangibles |
|
costs |
|
Total |
|
|
|
|
$m |
|
$m |
|
$m |
|
$m |
|
|
Year ended 31 December 2022 |
|
|
|
|
|
|
|
|
|
|
Research and development expense |
|
|
|
– |
|
– |
|
|
|
|
Selling, general and administrative expense |
|
|
|
|
|
(
|
|
|
|
|
Total |
|
|
|
|
|
(
|
|
|
|
|
Year ended 31 December 2023 |
|
|
|
|
|
|
|
|
|
|
Research and development expense |
|
|
|
– |
|
– |
|
|
|
|
Selling, general and administrative expense |
|
|
|
– |
|
– |
|
|
|
|
Total |
|
|
|
– |
|
– |
|
|
|
|
Year ended 31 December 2024 |
|
|
|
|
|
|
|
|
|
|
Research and development expense |
|
|
|
– |
|
– |
|
|
|
|
Selling, general and administrative expense |
|
|
|
|
|
|
|
|
|
|
Total |
|
|
|
|
|
|
|
|
|
Impairment charges and reversals
We perform a rigorous impairment trigger assessment for all our intangible assets. Intangible assets under development and not available for use are tested annually for impairment and other intangible assets are tested when there is an indication of impairment loss or reversal. Where testing is required, the recoverable amount of the assets is estimated in order to determine the extent of the impairment loss or reversal. Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the Cash Generating Unit (CGU) to which it belongs. The Group considers that as the intangible assets are linked to individual products and that product cash flows are considered to be largely independent of other product cash flows, the CGU for intangibles is at the product level. Group-level budgets and forecasts include forecast capital investment and operational impacts related to sustainability projects, as well as inflationary impacts, and form the basis for the value in use models used for impairment testing.
An asset’s recoverable amount is determined as the higher of an asset’s or CGU’s fair value less costs to sell or value in use, in both cases using discounted cash flow calculations where the asset’s expected post-tax cash flows are risk-adjusted over their estimated remaining period of expected economic benefit. Where the value in use approach is used, the post-tax risk-adjusted cash flows are discounted using AstraZeneca’s post-tax weighted average cost of capital (
Key assumptions and significant estimates used in calculating the recoverable amounts are highly sensitive and specific to the nature of the Group’s activities including:
| > | outcome of R&D activities |
| > | probability of technical and regulatory success |
| > | market volume, share and pricing (to derive peak year sales) |
| > | amount and timing of projected future cash flows |
| > | sales erosion curves following patent expiry. |
F-25
Whilst the intangible assets portfolio is generally exposed to significant impairment risk within the next financial year, no sensitivities have been disclosed since no specific asset has been identified as having a significant risk of a material impairment arising from reasonably possible changes in key assumptions.
For assets held at fair value less costs to sell, we make appropriate adjustments to reflect market participant assessments.
In 2024, the Group recorded impairment charges of $
Impairment charges recorded against products in development totalled $
In 2023, the Group recorded impairment charges of $
In 2022, the Group recorded impairment charges of $
The Group has performed an assessment on assets which have had impairments recorded in previous periods to determine if any reversals of impairments were required. Impairment reversals of $
When launched products are partially impaired, the carrying values of these assets in future periods are particularly sensitive to changes in forecast assumptions, including those assumptions set out above, as the asset is impaired down to its recoverable amount.
Significant assets
|
|
|
Carrying |
|
Remaining |
|
|
|
|
value |
|
amortisation |
|
|
|
|
$m |
|
period |
|
|
C5 franchise ( Soliris / Ultomiris ) intangible assets arising from the acquisition of Alexion |
|
|
|
|
|
|
Intangible assets arising from the acquisition of Acerta Pharma |
|
|
|
|
|
|
Strensiq , Kanuma intangible assets arising from the acquisition of Alexion |
|
|
|
|
|
|
Enhertu intangible assets acquired from Daiichi Sankyo |
|
|
|
|
|
|
Intangible asset products in development arising from the acquisition of Alexion 1 |
|
|
|
Not amortised |
|
|
Intangible assets arising from the acquisition of ZS Pharma |
|
|
|
|
|
|
Intangible asset products in development arising from the acquisition of Fusion 1 |
|
|
|
Not amortised |
|
|
Intangible asset products in development arising from the acquisition of Gracell 1 |
|
|
|
Not amortised |
|
|
Datroway intangible assets acquired from Daiichi Sankyo 1 |
|
|
|
Not amortised |
|
|
Baxdrostat intangible asset acquired from CinCor 1 |
|
|
|
Not amortised |
|
|
Intangible asset products in development arising from the acquisition of Amolyt 1 |
|
|
|
Not amortised |
|
|
Intangible asset products in development arising from the acquisition of Icosavax 1 |
|
|
|
Not amortised |
|
|
Airsupra intangible asset |
|
|
|
|
|
|
Intangible assets arising from the restructuring of a historical joint venture with MSD |
|
|
|
|
|
|
Monalizumab intangible assets acquired from Innate Pharma 1 |
|
|
|
Not amortised |
|
|
Intangible assets arising from the acquisition of Pearl Therapeutics |
|
|
|
|
|
|
Rare disease portfolio assets acquired from Pfizer 1 |
|
|
|
Not amortised |
|
| 1 | Assets in development are not amortised but are tested annually for impairment. |
In 2024, the intangible assets recognised on acquisition of Amolyt and Icosavax were separately assessed under the optional concentration test in IFRS 3 ‘Business Combinations’ and were individually determined to be asset acquisitions, as substantially all of the value of the gross assets acquired in each transaction was concentrated in these single assets.
The intangible asset baxdrostat recognised on acquisition of CinCor in 2023 was assessed under the optional concentration test in IFRS 3 and was determined to be an asset acquisition, as substantially all of the value of the gross assets acquired was concentrated in this single asset.
The acquisition of Pfizer’s pre-clinical rare disease gene therapy portfolio in 2023 was assessed under IFRS 3 and the transaction was treated as an asset acquisition.
11 Investments in associates and joint ventures
|
|
|
2024 |
|
2023 |
|
2022 |
|
|
|
|
$m |
|
$m |
|
$m |
|
|
At 1 January |
|
|
|
|
|
|
|
|
Additions |
|
|
|
|
|
|
|
|
Share of after tax losses |
|
(
|
|
(
|
|
(
|
|
|
Exchange and other adjustments |
|
(
|
|
|
|
(
|
|
|
At 31 December |
|
|
|
|
|
|
|
On 22 May 2024, AstraZeneca entered into an agreement with Fuse Biosciences (Cayman) Limited to acquire equity. Under the terms of the agreement, AstraZeneca contributed $
F-26
On 1 November 2023, AstraZeneca entered into an agreement with Cellectis, a clinical-stage biotechnology company, to accelerate the development of next generation therapeutics in areas of high unmet medical need, including oncology, immunology and rare diseases. Under the terms of the agreement, AstraZeneca contributed $
On 29 January 2021, AstraZeneca entered into an agreement with IHP Holdings Limited to create and run an online platform (iHospital) offering consultations with physicians, repeat prescriptions and e-pharmacy in China. The agreement resulted in the formation of a new entity, IHP HK Holdings Limited. AstraZeneca contributed $
On 1 December 2020, AstraZeneca and China International Capital Corporation (CICC) entered into an agreement to set up a Global Healthcare Industrial Fund to drive healthcare system innovation by leveraging local capital and accelerating China-related innovation incubation. The agreement resulted in the formation of a new entity, Wuxi AstraZeneca-CICC Venture Capital Partnership (Limited Partnership). AstraZeneca holds a
On 23 September 2021, AstraZeneca entered into an agreement with VaxEquity Limited (‘VaxEquity’) to collaborate and develop self-amplifying RNA technology with the aim of generating treatments for target diseases. AstraZeneca contributed $
On 27 November 2017, AstraZeneca entered into a joint venture agreement with Chinese Future Industry Investment Fund (FIIF), to discover, develop and commercialise potential new medicines to help address unmet medical needs globally, and to bring innovative new medicines to patients in China more quickly. The agreement resulted in the formation of a joint venture entity based in China, Dizal (Jiangsu) Pharmaceutical Co., Ltd. Since its establishment, AstraZeneca has contributed $
On 1 December 2015, AstraZeneca entered into a joint venture agreement with Fujifilm Kyowa Kirin Biologics Co., Ltd. to develop a biosimilar using the combined capabilities of the two parties. The agreement resulted in the formation of a joint venture entity based in the UK, Centus Biotherapeutics Limited (‘Centus’). Since its establishment, AstraZeneca has contributed $
All investments are accounted for using the equity method. At 31 December 2024, unrecognised losses in associates and joint ventures totalled $
Aggregated summarised financial information for the associate and joint venture entities is set out below:
|
|
|
2024 |
|
2023 |
|
2022 |
|
|
|
|
$m |
|
$m |
|
$m |
|
|
Non-current assets |
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
|
Total liabilities |
|
(
|
|
(
|
|
(
|
|
|
Net assets |
|
|
|
|
|
|
|
|
Amount attributable to AstraZeneca |
|
|
|
|
|
|
|
|
Goodwill |
|
|
|
|
|
– |
|
|
Exchange adjustments |
|
(
|
|
|
|
(
|
|
|
Carrying value of investments in associates and joint ventures |
|
|
|
|
|
|
|
Joint contractual arrangements were entered into between AstraZeneca and Daiichi Sankyo; in March 2019 for the co-development and co-commercialisation of
Enhertu
and in July 2020 for the co-development and co-commercialisation of
Datroway
. Each party shares global pre-tax net income from the collaboration on a
12 Other investments
|
|
|
2024 |
|
2023 |
|
2022 |
|
|
|
|
$m |
|
$m |
|
$m |
|
|
Non-current investments |
|
|
|
|
|
|
|
|
Equity securities at fair value through Other comprehensive income |
|
|
|
|
|
|
|
|
Fixed income securities at fair value through profit or loss |
|
– |
|
– |
|
|
|
|
Total |
|
|
|
|
|
|
|
|
Current investments |
|
|
|
|
|
|
|
|
Fixed income securities at fair value through profit or loss |
|
|
|
|
|
|
|
|
Cash collateral pledged to counterparties |
|
|
|
|
|
|
|
|
Fixed deposits |
|
– |
|
– |
|
|
|
|
Total |
|
|
|
|
|
|
|
Other investments held at FVOCI include equity securities which are not held for trading and which the Group has irrevocably elected at initial recognition to recognise in this category. Other investments held at FVPL mainly comprise fixed income securities that the Group holds to sell.
The fair value of listed investments is based on year end quoted market prices. Fixed deposits and Cash collateral pledged to counterparties are held at amortised cost with carrying value being a reasonable approximation of fair value given their short-term nature.
Cash collateral pledged to counterparties relates to collateral pledged on derivatives entered into to hedge the Group's risk exposures.
F-27
Fair value hierarchy
The table below analyses equity securities and bonds, contained within Other investments and carried at fair value, by valuation method. The different levels have been defined as follows:
| > | Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities |
| > | Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices) |
| > | Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs). |
|
|
|
2024 |
|
2024 |
|
2023 |
|
2023 |
|
2022 |
|
2022 |
|
|
|
|
FVPL |
|
FVOCI |
|
FVPL |
|
FVOCI |
|
FVPL |
|
FVOCI |
|
|
|
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
|
Level 1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Level 2 |
|
– |
|
– |
|
– |
|
– |
|
– |
|
– |
|
|
Level 3 |
|
– |
|
|
|
– |
|
|
|
|
|
|
|
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets are transferred in or out of each Level on the date of the event or change in circumstances that caused the transfer.
Equity securities that are analysed at Level 3 include investments in private biotech companies. In the absence of specific market data, these unlisted investments are held at fair value based on the cost of investment and adjusting as necessary for impairments and revaluations on new funding rounds, which approximates to fair value. Movements in Level 3 investments are detailed below:
|
|
|
2024 |
|
2024 |
|
2023 |
|
2023 |
|
2022 |
|
2022 |
|
|
|
|
FVPL |
|
FVOCI |
|
FVPL |
|
FVOCI |
|
FVPL |
|
FVOCI |
|
|
|
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
|
At 1 January |
|
– |
|
|
|
|
|
|
|
– |
|
|
|
|
Additions |
|
– |
|
|
|
– |
|
|
|
|
|
|
|
|
Revaluations |
|
– |
|
(
|
|
|
|
|
|
– |
|
|
|
|
Net transfers out from Level 3 to Level 1 |
|
– |
|
– |
|
– |
|
– |
|
– |
|
(
|
|
|
Disposals |
|
– |
|
– |
|
(
|
|
(
|
|
– |
|
(
|
|
|
Impairments and exchange adjustments |
|
– |
|
(
|
|
– |
|
|
|
– |
|
(
|
|
|
At 31 December |
|
– |
|
|
|
– |
|
|
|
|
|
|
|
13 Derivative financial instruments
|
|
|
Non-current |
|
Current |
|
Current |
|
Non-current |
|
|
|
|
|
|
assets |
|
assets |
|
liabilities |
|
liabilities |
|
Total |
|
|
|
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
|
Interest rate swaps related to instruments designated at fair value through profit or loss 1 |
|
– |
|
|
|
– |
|
– |
|
|
|
|
Cross-currency swaps designated in a net investment hedge |
|
|
|
– |
|
– |
|
(
|
|
|
|
|
Cross-currency swaps designated in a cash flow hedge |
|
– |
|
– |
|
– |
|
(
|
|
(
|
|
|
Forward FX designated in a cash flow hedge 2 |
|
– |
|
|
|
(
|
|
– |
|
(
|
|
|
Other derivatives |
|
|
|
|
|
(
|
|
– |
|
|
|
|
31 December 2022 |
|
|
|
|
|
(
|
|
(
|
|
(
|
|
|
|
|
Non-current |
|
Current |
|
Current |
|
Non-current |
|
|
|
|
|
|
assets |
|
assets |
|
liabilities |
|
liabilities |
|
Total |
|
|
|
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
|
Cross-currency swaps designated in a net investment hedge |
|
|
|
– |
|
– |
|
(
|
|
|
|
|
Cross-currency swaps designated in a cash flow hedge |
|
|
|
– |
|
(
|
|
(
|
|
|
|
|
Forward FX designated in a cash flow hedge 2 |
|
– |
|
|
|
(
|
|
– |
|
|
|
|
Other derivatives |
|
|
|
|
|
(
|
|
– |
|
(
|
|
|
31 December 2023 |
|
|
|
|
|
(
|
|
(
|
|
|
|
|
|
|
Non-current |
|
Current |
|
Current |
|
Non-current |
|
|
|
|
|
|
assets |
|
assets |
|
liabilities |
|
liabilities |
|
Total |
|
|
|
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
|
Cross-currency swaps designated in a net investment hedge |
|
|
|
– |
|
– |
|
– |
|
|
|
|
Cross-currency swaps designated in a cash flow hedge |
|
|
|
– |
|
– |
|
(
|
|
(
|
|
|
Cross-currency swaps designated in a fair value hedge |
|
– |
|
– |
|
– |
|
(
|
|
(
|
|
|
Forward FX designated in a cash flow hedge 2 |
|
– |
|
|
|
(
|
|
– |
|
|
|
|
Other derivatives |
|
– |
|
|
|
(
|
|
– |
|
– |
|
|
31 December 2024 |
|
|
|
|
|
(
|
|
(
|
|
|
|
| 1 | Interest rate swaps related to instruments designated at fair value through profit or loss matured in 2023. |
| 2 | Forward FX designated in a cash flow hedge relates to contracts hedging anticipated CNY, EUR, GBP, JPY and SEK transactions occurring in the quarter immediately after the balance sheet date. |
All derivatives are held at fair value and fall within Level 2 of the fair value hierarchy as defined in Note 12, except for an equity warrant which falls within Level 3 (valued at $
The fair value of interest rate swaps and cross-currency swaps is estimated using appropriate zero coupon curve valuation techniques to discount future contractual cash flows based on rates at the current year end.
The fair value of forward foreign exchange contracts and currency options are estimated by cash flow accounting models using appropriate yield curves based on market forward foreign exchange rates at the year end. The majority of forward foreign exchange contracts for existing transactions had maturities of less than
F-28
The interest rates used to discount future cash flows for fair value adjustments, where applicable, are based on market swap curves at the reporting date, and were as follows:
|
|
|
|
|
|
2024 |
|
|
|
|
2023 |
|
|
|
|
2022 |
|
|
Derivatives |
|
|
% |
to |
|
% |
|
% |
to |
|
% |
|
% |
to |
|
% |
14 Non-current other receivables
|
|
|
2024 |
|
2023 |
|
2022 |
|
|
|
|
$m |
|
$m |
|
$m |
|
|
Prepayments |
|
|
|
|
|
|
|
|
Accrued income |
|
|
|
|
|
|
|
|
Retirement benefit scheme surpluses (Note 22) |
|
|
|
|
|
|
|
|
Other receivables |
|
|
|
|
|
|
|
|
Non-current other receivables |
|
|
|
|
|
|
|
Other receivables include $
15 Inventories
|
|
|
2024 |
|
2023 |
|
2022 |
|
|
|
|
$m |
|
$m |
|
$m |
|
|
Raw materials and consumables |
|
|
|
|
|
|
|
|
Inventories in process |
|
|
|
|
|
|
|
|
Finished goods and goods for resale |
|
|
|
|
|
|
|
|
Inventories |
|
|
|
|
|
|
|
The Group recognised $
Inventory write-downs in the year amounted to $
16 Current trade and other receivables
|
|
|
2024 |
|
2023 |
|
2022 |
|
|
|
|
$m |
|
$m |
|
$m |
|
|
Trade receivables |
|
|
|
|
|
|
|
|
Less: Expected credit loss provision (Note 28) |
|
(
|
|
(
|
|
(
|
|
|
|
|
|
|
|
|
|
|
|
Other receivables |
|
|
|
|
|
|
|
|
Prepayments |
|
|
|
|
|
|
|
|
Government grants receivable |
|
|
|
|
|
|
|
|
Accrued income |
|
|
|
|
|
|
|
|
Trade and other receivables |
|
|
|
|
|
|
|
Trade receivables include $
All other financial assets included within Current trade and other receivables are held at amortised cost with carrying value being a reasonable approximation of fair value.
17 Cash and cash equivalents
|
|
|
2024 |
|
2023 |
|
2022 |
|
|
|
|
$m |
|
$m |
|
$m |
|
|
Cash at bank and in hand |
|
|
|
|
|
|
|
|
Short-term deposits |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
|
|
|
|
|
|
|
Unsecured bank overdrafts |
|
(
|
|
(
|
|
(
|
|
|
Cash and cash equivalents in the Consolidated Statement of Cash Flows |
|
|
|
|
|
|
|
AstraZeneca invests in constant net asset value funds, low-volatility net asset value funds and short-term variable net asset value funds with same day access for subscription and redemption. These investments fail the ‘solely payments of principal and interest’ test criteria under IFRS 9 ‘Financial Instruments’. They are therefore measured at FVPL, although the fair value is materially the same as amortised cost.
F-29
Non-cash and other movements, within operating activities in the Consolidated Statement of Cash Flows, includes:
|
|
|
2024 |
|
2023 |
|
2022 |
|
|
|
|
$m |
|
$m |
|
$m |
|
|
Share-based payments charge for the period |
|
|
|
|
|
|
|
|
Settlement of share plan awards |
|
(
|
|
(
|
|
(
|
|
|
Pension contributions |
|
(
|
|
(
|
|
(
|
|
|
Pension charges recorded in operating profit |
|
|
|
|
|
|
|
|
Long-term provision charges recorded in operating profit |
|
|
|
|
|
|
|
|
Loss/(gain) on disposal of tangible assets |
|
|
|
(
|
|
(
|
|
|
Update to the contractual relationships for Beyfortus |
|
– |
|
(
|
|
– |
|
|
Foreign exchange and other 1 |
|
(
|
|
|
|
(
|
|
|
Total operating activities non-cash and other movements |
|
(
|
|
(
|
|
(
|
|
| 1 | Foreign exchange and other includes, among other items, the foreign exchange of inter-company transactions, including dividends, across Group entities and the related impact from hedging those transactions. |
18 Assets held for sale
Assets held for sale amount to $
In 2022, Assets held for sale comprised Property, plant and equipment assets relating to the West Chester site in Ohio, US. The transaction closed on 30 January 2023.
F-30
19 Interest-bearing loans and borrowings
|
|
|
|
|
Repayment |
|
2024 |
|
2023 |
|
2022 |
|
|
|
|
|
|
dates |
|
$m |
|
$m |
|
$m |
|
|
Current liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
Bank overdrafts |
|
|
|
On demand |
|
|
|
|
|
|
|
|
Other short-term borrowings excluding overdrafts |
|
|
|
|
|
|
|
|
|
|
|
|
Collateral received from derivative counterparties |
|
|
|
|
|
|
|
|
|
|
|
|
Lease liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US dollars |
|
2023 |
|
– |
|
– |
|
|
|
|
2023 Floating bank loan |
|
US dollars |
|
2023 |
|
– |
|
– |
|
|
|
|
Floating rate notes |
|
US dollars |
|
2023 |
|
– |
|
– |
|
|
|
|
|
|
US dollars |
|
2023 |
|
– |
|
– |
|
|
|
|
|
|
US dollars |
|
2023 |
|
– |
|
– |
|
|
|
|
|
|
euros |
|
2024 |
|
– |
|
|
|
– |
|
|
|
|
US dollars |
|
2024 |
|
– |
|
|
|
– |
|
|
2024 Floating rate bank loans |
|
US dollars |
|
2024 |
|
– |
|
|
|
– |
|
|
|
|
US dollars |
|
2025 |
|
|
|
– |
|
– |
|
|
Other loans |
|
|
|
Within one year |
|
|
|
|
|
|
|
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
Non-current liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
Lease liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
euros |
|
2024 |
|
– |
|
– |
|
|
|
|
|
|
US dollars |
|
2024 |
|
– |
|
– |
|
|
|
|
2024 Floating bank loans |
|
US dollars |
|
2024 |
|
– |
|
– |
|
|
|
|
|
|
US dollars |
|
2025 |
|
– |
|
|
|
|
|
|
|
|
US dollars |
|
2026 |
|
|
|
|
|
|
|
|
|
|
US dollars |
|
2026 |
|
|
|
|
|
|
|
|
|
|
US dollars |
|
2027 |
|
|
|
– |
|
– |
|
|
|
|
euros |
|
2027 |
|
|
|
|
|
– |
|
|
|
|
US dollars |
|
2027 |
|
|
|
|
|
|
|
|
|
|
US dollars |
|
2028 |
|
|
|
|
|
– |
|
|
|
|
euros |
|
2028 |
|
|
|
|
|
|
|
|
|
|
US dollars |
|
2028 |
|
|
|
|
|
|
|
|
|
|
US dollars |
|
2029 |
|
|
|
|
|
|
|
|
|
|
US dollars |
|
2029 |
|
|
|
– |
|
– |
|
|
|
|
euros |
|
2029 |
|
|
|
|
|
|
|
|
|
|
US dollars |
|
2030 |
|
|
|
|
|
– |
|
|
|
|
euros |
|
2030 |
|
|
|
– |
|
– |
|
|
|
|
US dollars |
|
2030 |
|
|
|
|
|
|
|
|
|
|
US dollars |
|
2031 |
|
|
|
– |
|
– |
|
|
|
|
US dollars |
|
2031 |
|
|
|
|
|
|
|
|
|
|
pound sterling |
|
2031 |
|
|
|
|
|
|
|
|
|
|
euros |
|
2032 |
|
|
|
|
|
– |
|
|
|
|
US dollars |
|
2033 |
|
|
|
|
|
– |
|
|
|
|
euros |
|
2033 |
|
|
|
– |
|
– |
|
|
|
|
US dollars |
|
2034 |
|
|
|
– |
|
– |
|
|
|
|
US dollars |
|
2037 |
|
|
|
|
|
|
|
|
|
|
US dollars |
|
2042 |
|
|
|
|
|
|
|
|
|
|
US dollars |
|
2045 |
|
|
|
|
|
|
|
|
|
|
US dollars |
|
2048 |
|
|
|
|
|
|
|
|
|
|
US dollars |
|
2050 |
|
|
|
|
|
|
|
|
|
|
US dollars |
|
2051 |
|
|
|
|
|
|
|
|
Other loans |
|
US dollars |
|
|
|
|
|
|
|
|
|
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
Total interest-bearing loans and borrowings 1 |
|
|
|
|
|
|
|
|
|
|
|
| 1 |
All loans and borrowings above are unsecured. In previous years, there were current (2023: $
|
F-31
|
|
|
|
|
|
|
|
|
Total |
|
Total |
|
Total |
|
|
|
|
|
|
|
|
|
|
loans and |
|
loans and |
|
loans and |
|
|
|
|
|
|
|
|
|
|
borrowings |
|
borrowings |
|
borrowings |
|
|
|
|
|
|
|
|
|
|
2024 |
|
2023 |
|
2022 |
|
|
|
|
|
|
|
|
|
|
$m |
|
$m |
|
$m |
|
|
At 1 January |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes from financing cash flows |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Issue of loans and borrowings |
|
|
|
|
|
|
|
|
|
|
|
– |
|
|
Repayment of loans and borrowings |
|
|
|
|
|
|
|
(
|
|
(
|
|
(
|
|
|
Movement in short-term borrowings |
|
|
|
|
|
|
|
(
|
|
|
|
|
|
|
Repayment of obligations under leases |
|
|
|
|
|
|
|
(
|
|
(
|
|
(
|
|
|
Total changes in cash flows arising on financing activities from borrowings |
|
|
|
|
|
|
|
|
|
(
|
|
(
|
|
|
Movement in overdrafts |
|
|
|
|
|
|
|
(
|
|
|
|
(
|
|
|
New lease liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additions through business combinations |
|
|
|
|
|
|
|
|
|
– |
|
|
|
|
Exchange |
|
|
|
|
|
|
|
(
|
|
|
|
(
|
|
|
Other movements |
|
|
|
|
|
|
|
(
|
|
(
|
|
|
|
|
At 31 December |
|
|
|
|
|
|
|
|
|
|
|
|
|
Also included within Cash flows from financing activities within the Consolidated Statement of Cash Flows is a $
Set out below is a comparison by category of carrying values and fair values of all the Group’s interest-bearing loans and borrowings:
|
|
|
Instruments |
|
Instruments |
|
Instruments |
|
|
|
Total |
|
|
|
|
|
|
designated |
|
designated in |
|
designated in |
|
Amortised |
|
carrying |
|
Fair |
|
|
|
|
at fair value |
1 |
cash flow hedge |
2 |
fair value hedge |
3 |
cost |
|
value |
|
value |
|
|
|
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Overdrafts |
|
– |
|
– |
|
– |
|
|
|
|
|
|
|
|
Lease liabilities due within one year |
|
– |
|
– |
|
– |
|
|
|
|
|
|
|
|
Lease liabilities due after more than one year |
|
– |
|
– |
|
– |
|
|
|
|
|
|
|
|
Loans and borrowings due within one year |
|
|
|
– |
|
– |
|
|
|
|
|
|
|
|
Loans and borrowings due after more than one year |
|
– |
|
|
|
– |
|
|
|
|
|
|
|
|
Total at 31 December 2022 |
|
|
|
|
|
– |
|
|
|
|
|
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Overdrafts |
|
– |
|
– |
|
– |
|
|
|
|
|
|
|
|
Lease liabilities due within one year |
|
– |
|
– |
|
– |
|
|
|
|
|
|
|
|
Lease liabilities due after more than one year |
|
– |
|
– |
|
– |
|
|
|
|
|
|
|
|
Loans and borrowings due within one year |
|
– |
|
|
|
– |
|
|
|
|
|
|
|
|
Loans and borrowings due after more than one year |
|
– |
|
|
|
– |
|
|
|
|
|
|
|
|
Total at 31 December 2023 |
|
– |
|
|
|
– |
|
|
|
|
|
|
|
|
2024 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Overdrafts |
|
– |
|
– |
|
– |
|
|
|
|
|
|
|
|
Lease liabilities due within one year |
|
– |
|
– |
|
– |
|
|
|
|
|
|
|
|
Lease liabilities due after more than one year |
|
– |
|
– |
|
– |
|
|
|
|
|
|
|
|
Loans and borrowings due within one year |
|
– |
|
– |
|
– |
|
|
|
|
|
|
|
|
Loans and borrowings due after more than one year |
|
– |
|
|
|
|
|
|
|
|
|
|
|
|
Total at 31 December 2024³ |
|
– |
|
|
|
|
|
|
|
|
|
|
|
| 1 |
Instruments designated at FVPL include the US dollar
|
The fair value of fixed-rate publicly traded debt is based on year end quoted market prices; the fair value of floating rate debt is nominal value, as mark-to-market differences would be minimal given the frequency of resets. The carrying value of loans designated at FVPL is the fair value; this falls within the Level 1 valuation method as defined in Note 12. For loans designated in a fair value hedge relationship, carrying value is initially measured at fair value and remeasured for fair value changes in respect of the hedged risk at each reporting date. All other loans are held at amortised cost. Fair values, as disclosed in the table above, are all determined using the Level 1 valuation method as defined in Note 12, with the exception of overdrafts and lease liabilities, where fair value approximates to carrying values.
The cumulative adjustment to the carrying value of bonds designated in a fair value hedge relationship in the year was an increase in the liability of $
F-32
The interest rates used to discount future cash flows for fair value adjustments, where applicable, are based on market swap curves at the reporting date, and were as follows:
|
|
|
|
|
|
2024 |
|
|
|
|
2023 |
|
|
|
|
2022 |
|
|
Loans and borrowings |
|
|
% |
to |
|
% |
n/a |
|
to |
n/a |
1 |
|
% |
to |
|
% |
| 1 | All bonds designated as FVPL in 2023 matured prior to the reporting date. |
20 Trade and other payables
|
|
|
2024 |
|
2023 |
|
2022 |
|
|
|
|
$m |
|
$m |
|
$m |
|
|
Current liabilities |
|
|
|
|
|
|
|
|
Trade payables |
|
|
|
|
|
|
|
|
Value-added and payroll taxes and social security |
|
|
|
|
|
|
|
|
Rebates, chargebacks, returns and other revenue accruals |
|
|
|
|
|
|
|
|
Clinical trial accruals |
|
|
|
|
|
|
|
|
Other accruals |
|
|
|
|
|
|
|
|
Collaboration Revenue contract liabilities |
|
|
|
|
|
|
|
|
Vaccine contract liabilities |
|
|
|
|
|
|
|
|
Deferred government grant income |
|
– |
|
– |
|
|
|
|
Contingent consideration |
|
|
|
|
|
|
|
|
Acerta Pharma share purchase liability |
|
– |
|
|
|
|
|
|
Other payables |
|
|
|
|
|
|
|
|
Total |
|
|
|
|
|
|
|
|
Non-current liabilities |
|
|
|
|
|
|
|
|
Accruals |
|
|
|
|
|
|
|
|
Collaboration Revenue contract liabilities |
|
– |
|
|
|
|
|
|
Contingent consideration |
|
|
|
|
|
|
|
|
Acerta Pharma share purchase liability |
|
– |
|
– |
|
|
|
|
Other payables |
|
|
|
|
|
|
|
|
Total |
|
|
|
|
|
|
|
Included within Rebates, chargebacks, returns and other revenue accruals are contract liabilities of $
Trade payables includes $
Vaccine contract liabilities relate to amounts received from customers, primarily government bodies, in advance of supply of product.
Included within current Other payables are liabilities to Daiichi Sankyo totalling $
In November 2020, Calquence received marketing approval in the EU, which removed all remaining conditionality in respect of the Acerta Pharma put and call options regarding the non-controlling interest; the option was exercised in April 2021. The payments were made in similar annual instalments in 2022 through to 2024, with the first payment of $
With the exception of Contingent consideration payables of $
Contingent consideration
|
|
|
2024 |
|
2023 |
|
2022 |
|
|
|
|
$m |
|
$m |
|
$m |
|
|
At 1 January |
|
|
|
|
|
|
|
|
Additions through business combinations |
|
|
|
|
|
– |
|
|
Settlements |
|
(
|
|
(
|
|
(
|
|
|
Disposals |
|
– |
|
– |
|
(
|
|
|
Revaluations |
|
|
|
|
|
|
|
|
Discount unwind (Note 3) |
|
|
|
|
|
|
|
|
At 31 December |
|
|
|
|
|
|
|
F-33
Contingent consideration arising from business combinations is fair valued using decision-tree analysis, with key inputs including the probability of success, consideration of potential delays and the expected levels of future revenues.
Revaluations of Contingent consideration are recognised in Selling, general and administrative expense and include an increase of $
The discount rate used for the Contingent consideration balances range from
Management has identified that reasonably possible changes in certain key assumptions, including the likelihood of achieving successful trial results, obtaining regulatory approval, the projected market share of the therapy area and expected pricing for launched products, may cause the calculated fair value of the above contingent consideration to vary materially in future years.
The contingent consideration balance relating to BMS’s share of Global Diabetes Alliance of $
The maximum development and sales milestones payable under outstanding Contingent consideration arrangements arising on business combinations are as follows:
|
|
|
|
|
Nature of |
|
Maximum future milestones |
|
|
Acquisitions |
|
Year |
|
contingent consideration |
|
$m |
|
|
Spirogen |
|
2013 |
|
Milestones |
|
|
|
|
Amplimmune, Inc. |
|
2013 |
|
Milestones |
|
|
|
|
Almirall |
|
2014 |
|
Milestones and royalties |
|
|
|
|
Neogene |
|
2023 |
|
Milestones |
|
|
|
|
Fusion |
|
2024 |
|
Milestones |
|
|
|
|
Gracell |
|
2024 |
|
Milestones |
|
|
|
The amount of royalties payable under the arrangements is inherently uncertain and difficult to predict, given the direct link to future sales and the range of outcomes. The maximum amount of royalties payable in each year is with reference to net sales.
21 Provisions
|
|
|
|
|
|
|
Employee |
|
|
|
Other |
|
|
|
|
|
|
Severance |
|
Environmental |
|
benefits |
|
Legal |
|
provisions |
|
Total |
|
|
|
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
|
At 1 January 2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charge for year |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash paid |
|
(
|
|
(
|
|
(
|
|
(
|
|
(
|
|
(
|
|
|
Reversals |
|
(
|
|
– |
|
(
|
|
(
|
|
(
|
|
(
|
|
|
Exchange and other movements |
|
(
|
|
(
|
|
|
|
– |
|
(
|
|
(
|
|
|
At 31 December 2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charge for year |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash paid |
|
(
|
|
(
|
|
(
|
|
(
|
|
(
|
|
(
|
|
|
Reversals |
|
(
|
|
(
|
|
(
|
|
(
|
|
(
|
|
(
|
|
|
Exchange and other movements |
|
|
|
|
|
|
|
(
|
|
(
|
|
(
|
|
|
At 31 December 2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additions arising on business acquisitions |
|
– |
|
– |
|
– |
|
– |
|
|
|
|
|
|
Charge for year |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash paid |
|
(
|
|
(
|
|
(
|
|
(
|
|
(
|
|
(
|
|
|
Reversals |
|
(
|
|
– |
|
(
|
|
(
|
|
(
|
|
(
|
|
|
Exchange and other movements |
|
– |
|
– |
|
(
|
|
(
|
|
(
|
|
(
|
|
|
At 31 December 2024 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2024 |
|
2023 |
|
2022 |
|
|
|
|
$m |
|
$m |
|
$m |
|
|
Due within one year |
|
|
|
|
|
|
|
|
Due after more than one year |
|
|
|
|
|
|
|
|
Total |
|
|
|
|
|
|
|
Provisions are often subject to substantial uncertainties with regard to the timing and final amounts of any payments. Once established, these amounts remain in Provisions even after settlement is reached and uncertainty resolved, with no transfer to Trade and other payables prior to payment. This is to provide more transparent disclosure of subsequent movements in brought forward and carried forward balances. Settled legal claims included within Provisions are held at amortised cost with carrying value being a reasonable approximation of fair value.
Severance provisions arise predominantly in connection with global restructuring initiatives, including the PAAGR, which involve rationalisation of the global supply chain, the sales and marketing organisation, IT and business support infrastructure, and R&D.
In conjunction with the acquisition of Alexion in 2021, the enlarged Group initiated the PAAGR; a global restructuring programme, aimed at integrating systems, structure and processes, optimising the global footprint and prioritising resource allocations and investments. The Group has also continued to progress other legacy restructuring programmes.
Employee costs in connection with the initiatives are recognised in severance provisions when a detailed formal plan has been communicated to those employees affected. Final severance costs are often subject to the completion of the requisite consultations on the areas impacted, with the majority of the cost expected to be paid within one year. AstraZeneca endeavours to support employees affected by restructuring initiatives to seek alternative roles within the organisation. Where the employee is successful, any severance provisions will be released.
F-34
Details of the Environmental provisions totalling $
Legal issues are often subject to substantial uncertainties with regard to the timing and final amounts of any payments. A significant proportion of the total legal provision ($
The majority of Employee benefit provisions relate to Executive Deferred Compensation Plans, which include uncertainty over the ultimate timing and amount of payment to be made to the executives.
Other provisions comprise amounts relating to specific contractual or constructive obligations and disputes. Included within Other provisions are amounts associated with long-standing product liability settlements that arose prior to the merger of Astra and Zeneca, which given the nature of the provision, the amounts are expected to be settled over many years; the final settlement values and timings are uncertain. Also included in Other provisions is an amount of $
No provision has been released or applied for any purpose other than that for which it was established.
| 1 |
The profile of future payments of legal provisions due after one year is as follows: in one to two years $
|
22 Post-retirement pension and other defined benefit schemes
Background
This section predominantly covers defined benefit arrangements like post-retirement pension and medical plans which make up the vast bulk of these liabilities. However, it also incorporates other benefits which fall under IAS 19 ‘Employee Benefits’ rules and which require an actuarial valuation, including but not limited to: lump sum plans, long-service awards and defined contribution pension plans which have some defined benefit characteristics (e.g. a minimum guaranteed level of benefit). In total, over
The Group and most of its subsidiaries offer post-retirement pension plans which cover the majority of employees. The Group’s policy is to provide defined contribution (DC) orientated pension provision to its employees unless otherwise compelled by local regulation. As a result, many of these retirement plans are DC, where the Group contribution and resulting charge is fixed at a set level, or is a set percentage of employees’ pay. However, several plans, mainly in the UK and Sweden, are defined benefit (DB), where benefits are based on employees’ length of service and salary. The major DB plans are largely legacy arrangements as they have been closed to new entrants since 2000, apart from the collectively bargained Swedish plan (which is still open to employees born before 1979). During 2010, following consultation with its UK employees’ representatives, the Group introduced a freeze on pensionable pay at 30 June 2010 levels for DB members of the UK Pension Fund. The number of active members in the Fund continues to decline and is now
The Group’s DB plans are largely funded through ringfenced, fiduciary-administered assets. The cash funding of the plans, which may from time to time involve payments from the Group, is designed, in consultation with independent qualified actuaries, to ensure that the assets are sufficient to meet future obligations as and when they fall due. The funding level is monitored by the Group and local fiduciaries, who may take into account various factors, including: the strength of the Group’s covenant, local regulation, cash flows, and the solvency and maturity of the pension plan.
Funding Framework
per cent of the Group’s total DB obligations (or
The Group has developed a long-term funding framework for such plans which targets either full funding on a low-risk funding measure, or buyout with an external third-party as the pension plans mature, with pragmatic long-term de-risking of investment strategy along the way. Unless local regulation dictates otherwise, this framework determines the cash contributions payable.
UK
The UK Pension Fund represents approximately
Role of Trustee and Regulation
The UK Pension Fund is governed and administered by a corporate Trustee. The Trustee Directors are comprised of representatives appointed by both the employer and Fund members and include an independent professional Trustee Director. The Trustee Directors are required by law to act in the interest of all relevant beneficiaries and are responsible in particular, for investment strategy and the day-to-day administration of the benefits. They are also responsible for jointly agreeing with the employer the level of contributions required to ensure the funding objective is met.
The UK pensions industry is regulated by The Pensions Regulator whose statutory objectives and regulatory powers are described on its website, www.thepensionsregulator.gov.uk.
The Pension Scheme Act 2021 became effective in the UK from 1 October 2021. A section of this Act places additional legal requirements on companies who sponsor UK defined benefit pension schemes, to monitor and assess corporate activity, with a focus on the potential impact of such activity on the ongoing security of these benefits. The Group maintains a framework to ensure it meets its responsibilities under the Act.
There have been two UK High Court Rulings relating to Guaranteed Minimum Pensions (GMP) equalisation in 2018 and 2020. Following the publication of guidance around implementation in 2021, the Trustee, with input from the Group, has completed the equalisation of benefits for pensioner members, and a process is in place to equalise non-pensioner members’ benefits at the point of retirement. Further details are set out later in this Note. An estimate of the impact of these changes has already been recognised in 2018 and 2020, and actual experience is in line with the estimates previously recognised.
F-35
In June 2023, the UK High Court (Virgin Media Limited v NTL Pension Trustees II Limited) ruled that certain historical amendments for contracted-out defined benefit pension plans were invalid if they were not accompanied by the correct actuarial confirmation. Whilst the Court of Appeal upheld this ruling in July 2024, there remains material uncertainty in relation to the legal position itself and in particular, the application of the ruling. The Group has discussed the ruling with the Trustee and its potential implications for the UK Pension Fund. The Trustee has considered this matter with their legal adviser. Whilst the Trustee has not conducted any detailed investigations at this point, we note their position that they have no reason to believe that any such confirmations were not provided, in which case the ruling will have no impact on the UK Pension Fund. The Trustee is monitoring developments as further government guidance and/or case law emerges and the Group will maintain a dialogue on this matter.
Funding requirements and security
UK legislation requires that an actuarial valuation is completed for all DB pension schemes every three years, which compares the schemes’ liabilities to its assets. As part of the triennial valuation process, the Trustee and the Group must agree on a set of assumptions to value the liabilities and determine the contributions required, if any, to ensure the UK Pension Fund is fully funded over an appropriate time period and on a suitably prudent measure. The assumptions used to value the liabilities for the triennial actuarial valuation are required to be prudent, whereas the assumptions used to prepare an IAS 19 accounting valuation are required to be ‘best estimate’.
The last full actuarial valuation of the UK Pension Fund was carried out by a qualified actuary as at 31 March 2022 and finalised in May 2023, ahead of the statutory deadline. The funding assumptions used in this actuarial valuation were set out in the Group's prior year report. The next actuarial valuation is due to take place as at 31 March 2025, with a likely timescale for completion in early to mid-2026. The Group is aware that this actuarial valuation will fall under the Pensions Regulator's new defined benefit funding code of practice.
Aspects of the triennial actuarial valuation are governed by a long-term funding agreement, effective since October 2016, which sets out a path to full funding on a low-risk measure. Under this agreement, if a deficit exists, the Group is required to provide security. This security takes the form of a charge in favour of the Trustee over all land and buildings on the Group’s Cambridge Biomedical Campus site. This charge was enacted in December 2023, and provides long-term security to the Trustee in respect of the Group’s future deficit recovery contributions. At the last assessment date (1 December 2023), the value of the charge was £
In relation to deficit recovery contributions, a lump sum contribution of £
GMP equalisation of member benefits has been completed. The method of equalisation converts GMP to non-GMP pension to simplify the structure and administration of benefits. As at 31 December 2024, all pensioner and dependent members have had their benefits equalised and, for non-pensioner members, a process is in place to equalise their benefits at their point of retirement.
Under the governing documentation of the UK Pension Fund, any future surplus in the Fund would be returnable to the Group by refund assuming gradual settlement of the liabilities over the lifetime of the Fund. In particular, the Trustee has no unilateral right to wind up the Fund without Company consent nor does it have the power to unilaterally use any surplus to augment benefits prior to wind-up. As such, there are no adjustments required in respect of ‘IFRIC 14 IAS 19 – The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction’.
Sweden
The Swedish plans account for
The Swedish defined benefit pension plans were actuarially valued at 31 December 2023, when plan obligations were estimated to amount to $
Based on 31 December 2024 IAS 19 assumptions, it is expected that contributions during the year ending 31 December 2025 for Sweden will be approximately $
US
Following a buy out in May 2023 of the AZ Pharmaceutical LP qualified US Defined Benefit Pension Plan, all remaining US benefit plans which fall under IAS 19 are now disclosed within the ‘Rest of Group’ category, given the material reduction in aggregate obligation and to therefore ensure consistency with the Group's classification methodology.
Other defined benefit plans
The Group provides defined benefit plans other than pensions which are reported under IAS 19. These include lump sum plans, long-service awards and defined contribution pension plans which have a guaranteed minimum benefit. However, the largest category of these ‘other’ non-pension plans are healthcare benefits.
The cost of post-retirement benefits other than pensions for the Group in 2024 was $
F-36
Financial assumptions
Qualified independent actuaries have updated the actuarial valuations under IAS 19 for the major defined benefit plans operated by the Group to 31 December 2024. The assumptions used may not necessarily be borne out in practice, due to the inherent financial and demographic uncertainty associated with making long-term projections. These assumptions reflect the changes which have the most material impact on the results of the Group and were as follows:
|
|
|
|
|
|
|
|
|
|
2023 |
|
|
|
UK |
|
US |
|
Sweden |
|
Rest of Group 1 |
|
|
Inflation assumption |
|
|
% |
– |
|
|
% |
|
% |
|
Rate of increase in salaries |
|
– |
3 |
– |
|
|
% |
|
% |
|
Rate of increase in pensions in payment |
|
|
% |
– |
|
|
% |
|
% |
|
Discount rate – defined benefit obligation |
|
|
% |
|
% |
|
% |
|
% |
|
Discount rate – interest cost |
|
|
% |
|
% |
|
% |
|
% |
|
Discount rate – service cost |
|
|
% |
n/a |
|
|
% |
|
% |
|
|
|
|
|
|
|
|
|
|
2024 |
|
|
|
|
|
UK |
|
Sweden |
|
Rest of Group 1 |
|
|
Inflation assumption |
|
|
|
|
% 2 |
|
% |
|
% |
|
Rate of increase in salaries |
|
|
|
– |
3 |
|
% |
|
% |
|
Rate of increase in pensions in payment |
|
|
|
|
% |
|
% |
|
% |
|
Discount rate – defined benefit obligation 4 |
|
|
|
|
% |
|
% |
|
% |
|
Discount rate – interest cost 5 |
|
|
|
|
% |
|
% |
|
% |
|
Discount rate – service cost 5 |
|
|
|
|
% |
|
% |
|
% |
| 1 | Rest of Group reflects the assumptions in Germany as these have the most material impact on the Group. |
The weighted average duration of the post-retirement scheme obligations is approximately
Demographic assumptions
The mortality assumptions are based on country-specific mortality tables. These are compared to actual experience and adjusted where sufficient data are available. Additional allowance for future improvements in life expectancy is included for all major plans where there is credible data to support a continuing trend.
The table below illustrates life expectancy assumptions at age
|
|
|
Life expectancy assumption for a male member retiring at age 65 |
|
Life expectancy assumption for a female member retiring at age 65 |
|
||||||||||||
|
Country |
|
2024 |
|
2044 |
|
2023 |
|
2043 |
|
2024 |
|
2044 |
|
2023 |
|
2043 |
|
|
UK |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sweden |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In the UK, the Group adopted the CMI Core 2023 Mortality Projections Model with an addition to initial rates of improvement of
In Sweden, the Group adopted DUS23 (2023: DUS21) as the mortality base table. All other demographic assumptions are unchanged from 2023.
F-37
Risks associated with the Group’s defined benefit pension plans
The UK defined benefit plan accounts for
|
Risk |
|
Description |
|
Mitigation |
|
1 Asset pricing |
|
The Defined Benefit Obligation (DBO) is calculated using a discount rate set with reference to AA-rated corporate bond yields; asset returns that differ from the discount rate will create an element of volatility in the solvency ratio. Approximately
|
|
The Trustee invests in a suitably diversified range of asset classes with different return drivers and investment managers. Investment strategy will evolve to further improve the expected risk/return profile as opportunities arise and funding solvency improves.
The Trustee has hedged approximately
|
|
2 Interest rate |
|
A decrease in corporate bond yields will increase the present value placed on the DBO under IAS 19. |
|
The interest rate hedge of the UK Pension Fund is predominantly implemented via holding gilts (and gilt repurchase agreements or ‘gilt repo’) of appropriate duration. This hedge protects to a large degree against falls in long-term interest rates and the UK Pension Fund is approximately
|
|
3 Inflation |
|
The majority of the DBO is indexed in line with price inflation (mainly inflation as measured by the UK Retail Price Index (RPI) but also for some members, a component of pensions is indexed by the UK Consumer Price Index (CPI)) and higher inflation will lead to higher liabilities (although, in the vast majority of cases, this is capped at an annual increase of
|
|
The UK Pension Fund holds RPI index-linked gilts and ‘gilt repo’. The inflation hedge of the UK Pension Fund protects to some degree against higher-than-expected inflation increases on the DBO and is approximately
|
|
4 Longevity |
|
The majority of the UK Pension Fund’s obligations are to provide benefits for the life of the member, so increases in life expectancy will result in an increase in the liabilities. |
|
In 2013, the Trustee entered into a longevity swap to hedge against the risk of increasing life expectancy over the next circa
|
|
5 Cash flow and liquidity |
|
The UK Pension Fund is maturing and cash flow negative. Assets are liquidated to meet benefit outgo and potentially from time to time, to supplement the collateral pool required to post margin for derivative holdings. There is a risk of the Trustee requesting liquidity support from the Group to meet margin calls or expenditure, if the liquidity position of the UK Pension Fund is not effectively monitored and managed. |
|
The Trustee invests in a diversified portfolio of highly liquid assets to manage sequencing risk and operates a collateral management policy, maintaining a minimum liquidity ‘buffer’. As at the end of 2024, the buffer is well above recommended regulatory guidelines and the minimum thresholds, and can be quickly supplemented in an orderly manner.
At 31 December 2024,
|
Other risks
There are a number of other risks of administering the UK Pension Fund which the Trustee manages with Group input. Some of the major risks include counterparty risks from using derivatives (mitigated by using a specialist investment manager to oversee a diversified range of counterparties of high standing and ensuring positions are collateralised daily). Furthermore, there are operational risks (such as paying out the wrong benefits) and regulatory risks (such as the UK Government introducing new legislation). These are mitigated so far as possible via the governance structure in place which oversees and administers the Pension Funds.
Fiduciary Boards who govern the Swedish pension plans also monitor and manage these key risks, where relevant and possible to do so, in a similar way, by investing in a diversified manner (to mitigate the first risk) and employing a framework to hedge interest rate risk where practicable (to mitigate the second risk). It is not possible to hedge inflation risk (third risk) nor longevity risk (fourth risk) due to a lack of available instruments in the local market. As the Swedish plans are less mature and have a longer investment horizon, the fifth risk is not as significant compared to the UK Pension Fund.
Fiduciary boards are aware of Environmental, Social and Governance (ESG) risks as they pertain to investment policy, and where local regulation allows, have policies in place to monitor and manage such risks and comply with local legislation and disclosure requirements.
F-38
Assets and obligations of defined benefit plans
The assets and obligations of the defined benefit schemes operated by the Group at 31 December 2024, as calculated in accordance with IAS 19, are shown below. The fair values of the schemes’ assets are not intended to be realised in the short term and may be subject to significant change before they are realised. The present value of the schemes’ obligations is derived from cash-flow projections over long periods and is therefore inherently uncertain.
Scheme assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
|
|
|
|
|
UK |
|
|
|
US |
|
|
|
Sweden |
|
|
|
Rest of Group |
|
|
|
Total |
|
|
|
|
|
|
Quoted |
|
Unquoted |
|
Quoted |
|
Unquoted |
|
Quoted |
|
Unquoted |
|
Quoted |
|
Unquoted |
|
Quoted |
|
Unquoted |
|
Total |
|
|
|
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
|
Government bonds 1 |
|
|
|
– |
|
|
|
– |
|
– |
|
– |
|
|
|
– |
|
|
|
– |
|
|
|
|
Corporate bonds 2 |
|
|
|
– |
|
|
|
– |
|
– |
|
– |
|
|
|
– |
|
|
|
– |
|
|
|
|
Derivatives 3 |
|
– |
|
(
|
|
– |
|
– |
|
– |
|
|
|
– |
|
– |
|
– |
|
(
|
|
(
|
|
|
Investment funds: Listed Equities 4 |
|
– |
|
|
|
– |
|
– |
|
– |
|
– |
|
|
|
|
|
|
|
|
|
|
|
|
Investment funds: Absolute Return/Multi Strategy 4 |
|
– |
|
|
|
– |
|
– |
|
– |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment funds: Corporate Bonds/Credit 4 |
|
– |
|
|
|
– |
|
– |
|
– |
|
|
|
|
|
– |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
|
|
|
|
|
|
– |
|
– |
|
|
|
– |
|
|
|
|
|
|
|
|
|
|
Other |
|
– |
|
– |
|
– |
|
– |
|
– |
|
– |
|
(
|
|
|
|
(
|
|
|
|
|
|
|
Total fair value of scheme assets 5 |
|
|
|
|
|
|
|
– |
|
– |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2024 |
|
|
|
|
|
|
|
|
|
|
UK |
|
|
|
Sweden |
|
|
|
Rest of Group |
|
|
|
Total |
|
|
|
|
|
|
|
|
|
|
Quoted |
|
Unquoted |
|
Quoted |
|
Unquoted |
|
Quoted |
|
Unquoted |
|
Quoted |
|
Unquoted |
|
Total |
|
|
|
|
|
|
|
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
|
Government bonds 1 |
|
|
|
|
|
|
|
– |
|
– |
|
– |
|
|
|
– |
|
|
|
– |
|
|
|
|
Corporate bonds 2 |
|
|
|
|
|
|
|
– |
|
– |
|
– |
|
|
|
– |
|
|
|
– |
|
|
|
|
Derivatives 3 |
|
|
|
|
|
– |
|
(
|
|
– |
|
|
|
– |
|
– |
|
– |
|
|
|
|
|
|
Investment funds: Listed Equities 4 |
|
|
|
|
|
– |
|
|
|
– |
|
– |
|
|
|
|
|
|
|
|
|
|
|
|
Investment funds: Absolute Return/Multi Strategy 4 |
|
|
|
|
|
– |
|
|
|
– |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment funds: Corporate Bonds/Credit 4 |
|
|
|
|
|
– |
|
|
|
– |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
|
|
|
|
|
|
|
|
– |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other |
|
|
|
|
|
– |
|
– |
|
– |
|
– |
|
(
|
|
|
|
(
|
|
|
|
|
|
|
Total fair value of scheme assets 5 |
|
|
|
|
|
|
|
|
|
– |
|
|
|
|
|
|
|
|
|
|
|
|
|
| 1 | Predominantly developed markets in nature. |
| 2 | Predominantly developed markets in nature and investment grade (AAA-BBB). |
| 3 | Includes interest rate swaps, inflation swaps, longevity swaps, equity total return swaps and other contracts. More detail is given in the section Risks associated with the Group’s defined benefit pension plans on page 186. Valuations are determined by independent third parties. |
| 4 | Investment Funds are pooled, commingled vehicles, whereby the pension plan owns units in the fund, alongside other investors. The pension plans invest in a number of Investment Funds, including Listed Equities (primarily developed markets with some emerging markets), Corporate Bonds/Credit (a range of investment-grade and non investment-grade credit) and Absolute Return/Multi Strategy (actively managed multi-asset exposure both across and within traditional and alternative asset classes). The price of the funds is set by independent administrators/custodians employed by the investment managers and based on the value of the underlying assets held in the fund. Details of pricing methodology is set out within internal control reports provided for each fund. Prices are updated daily, weekly or monthly depending upon the frequency of the fund’s dealing. |
| 5 |
|
Scheme obligations
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
|
|
UK |
|
US |
|
Sweden |
|
Rest of Group |
|
Total |
|
|
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
Present value of scheme obligations in respect of: |
|
|
|
|
|
|
|
|
|
|
|
Active membership |
|
(
|
|
(
|
|
(
|
|
(
|
|
(
|
|
Deferred membership |
|
(
|
|
(
|
|
(
|
|
(
|
|
(
|
|
Pensioners |
|
(
|
|
(
|
|
(
|
|
(
|
|
(
|
|
Total value of scheme obligations |
|
(
|
|
(
|
|
(
|
|
(
|
|
(
|
|
|
|
|
|
|
|
|
|
|
|
2024 |
|
|
|
|
|
UK |
|
Sweden |
|
Rest of Group |
|
Total |
|
|
|
|
|
$m |
|
$m |
|
$m |
|
$m |
|
Present value of scheme obligations in respect of: |
|
|
|
|
|
|
|
|
|
|
|
Active membership |
|
|
|
(
|
|
(
|
|
(
|
|
(
|
|
Deferred membership |
|
|
|
(
|
|
(
|
|
(
|
|
(
|
|
Pensioners |
|
|
|
(
|
|
(
|
|
(
|
|
(
|
|
Total value of scheme obligations |
|
|
|
(
|
|
(
|
|
(
|
|
(
|
F-39
Net (deficit)/surplus in the scheme
|
|
|
|
|
|
|
|
|
|
2023 |
|
|
UK |
|
US |
|
Sweden |
|
Rest of Group |
|
Total |
|
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
Total fair value of scheme assets |
|
|
|
|
|
|
|
|
|
|
Total value of scheme obligations |
(
|
|
(
|
|
(
|
|
(
|
|
(
|
|
(Deficit)/surplus in the scheme as recognised in the
|
(
|
|
|
|
(
|
|
(
|
|
(
|
|
Included in Non-current other receivables (Note 14) |
– |
|
|
|
– |
|
|
1 |
|
|
Included in Retirement benefit obligations |
(
|
|
(
|
|
(
|
|
(
|
|
(
|
|
|
(
|
|
|
|
(
|
|
(
|
|
(
|
|
|
|
|
|
|
|
|
|
|
2024 |
|
|
|
|
UK |
|
Sweden |
|
Rest of Group |
|
Total |
|
|
|
|
$m |
|
$m |
|
$m |
|
$m |
|
Total fair value of scheme assets |
|
|
|
|
|
|
|
|
|
|
Total value of scheme obligations |
|
|
(
|
|
(
|
|
(
|
|
(
|
|
Deficit in the scheme as recognised in the Consolidated Statement of Financial Position |
|
|
(
|
|
(
|
|
(
|
|
(
|
|
Included in Non-current other receivables (Note 14) |
|
|
– |
|
– |
|
|
2 |
|
|
Included in Retirement benefit obligations |
|
|
(
|
|
(
|
|
(
|
|
(
|
|
|
|
|
(
|
|
(
|
|
(
|
|
(
|
| 1 | Surpluses were recognised in Ireland and Belgium. |
| 2 | Surpluses were recognised in the US, Ireland and Belgium. |
Fair value of scheme assets
|
|
|
|
|
|
|
|
|
|
2024 |
|
|
|
|
|
|
|
|
|
2023 |
|
|
|
|
|
UK |
|
Sweden |
|
Rest of Group |
|
Total |
|
UK |
|
US |
|
Sweden |
|
Rest of Group |
|
Total |
|
|
|
|
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
|
At beginning of year |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income on scheme assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
(
|
|
– |
|
– |
|
(
|
|
(
|
|
(
|
|
– |
|
(
|
|
(
|
|
|
Actuarial (losses)/gains |
|
|
(
|
|
|
|
– |
|
(
|
|
(
|
|
|
|
|
|
(
|
|
(
|
|
|
Exchange and other adjustments |
|
|
(
|
|
(
|
|
(
|
|
(
|
|
|
|
(
|
|
|
|
|
|
|
|
|
Employer contributions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Participant contributions |
|
|
|
|
– |
|
|
|
|
|
|
|
|
|
– |
|
|
|
|
|
|
Benefits paid |
|
|
(
|
|
(
|
|
(
|
|
(
|
|
(
|
|
(
|
|
(
|
|
(
|
|
(
|
|
|
Settlements 1 |
|
|
– |
|
– |
|
(
|
|
(
|
|
– |
|
(
|
|
– |
|
– |
|
(
|
|
|
Scheme assets’ fair value at end of year |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 1 | The 2024 settlement is the buyout of post-retirement pension plans in Norway and the Netherlands. |
The actual return on the plan assets was a loss of $
Movement in post-retirement scheme obligations
|
|
|
|
|
|
|
|
|
|
2024 |
|
|
|
|
|
|
|
|
|
2023 |
|
|
|
|
|
UK |
|
Sweden |
|
Rest of Group |
|
Total |
|
UK |
|
US |
|
Sweden |
|
Rest of Group |
|
Total |
|
|
|
|
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
|
Present value of obligations in scheme at beginning of year |
|
|
(
|
|
(
|
|
(
|
|
(
|
|
(
|
|
(
|
|
(
|
|
(
|
|
(
|
|
|
Current service cost |
|
|
(
|
|
(
|
|
(
|
|
(
|
|
(
|
|
(
|
|
(
|
|
(
|
|
(
|
|
|
Past service (cost)/credit |
|
|
(
|
|
(
|
|
|
|
(
|
|
|
|
– |
|
(
|
|
|
|
|
|
|
Participant contributions |
|
|
(
|
|
– |
|
(
|
|
(
|
|
(
|
|
(
|
|
– |
|
(
|
|
(
|
|
|
Benefits paid |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense on post-retirement scheme obligations |
|
|
(
|
|
(
|
|
(
|
|
(
|
|
(
|
|
(
|
|
(
|
|
(
|
|
(
|
|
|
Actuarial gains/(losses) |
|
|
|
|
(
|
|
|
|
|
|
(
|
|
(
|
|
(
|
|
|
|
(
|
|
|
Exchange and other adjustments |
|
|
|
|
|
|
|
|
|
|
(
|
|
|
|
(
|
|
(
|
|
(
|
|
|
Settlements 1 |
|
|
– |
|
– |
|
|
|
|
|
– |
|
|
|
– |
|
|
|
|
|
|
Present value of obligations in scheme at end of year |
|
|
(
|
|
(
|
|
(
|
|
(
|
|
(
|
|
(
|
|
(
|
|
(
|
|
(
|
|
| 1 | The 2024 settlement is the buyout of post-retirement pension plans in Norway and the Netherlands. |
The obligations arise from over
|
|
|
|
|
|
|
|
|
|
2024 |
|
|
|
|
|
|
|
|
|
2023 |
|
|
|
|
|
UK |
|
Sweden |
|
Rest of Group |
|
Total |
|
UK |
|
US |
|
Sweden |
|
Rest of Group |
|
Total |
|
|
|
|
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
|
Funded – pension schemes 1 |
|
|
(
|
|
(
|
|
(
|
|
(
|
|
(
|
|
– |
|
(
|
|
(
|
|
(
|
|
|
Funded – post-retirement healthcare |
|
|
– |
|
– |
|
(
|
|
(
|
|
– |
|
(
|
|
– |
|
– |
|
(
|
|
|
Unfunded – pension schemes 1 |
|
|
– |
|
(
|
|
(
|
|
(
|
|
– |
|
(
|
|
(
|
|
(
|
|
(
|
|
|
Unfunded – post-retirement healthcare |
|
|
(
|
|
– |
|
(
|
|
(
|
|
(
|
|
– |
|
– |
|
(
|
|
(
|
|
|
Total |
|
|
(
|
|
(
|
|
(
|
|
(
|
|
(
|
|
(
|
|
(
|
|
(
|
|
(
|
|
| 1 | Includes defined benefit pension schemes and other plans, such as lump sum, long service awards and DC plans with underpins. |
F-40
Consolidated Statement of Comprehensive Income disclosures
The amounts that have been charged to the Consolidated Statement of Comprehensive Income, in respect of defined benefit schemes for the years ended 31 December 2024 and 31 December 2023, are set out below.
|
|
|
|
|
|
|
|
|
|
2024 |
|
|
|
|
|
|
|
|
|
2023 |
|
|
|
|
|
UK |
|
Sweden |
|
Rest of Group |
|
Total |
|
UK |
|
US |
|
Sweden |
|
Rest of Group |
|
Total |
|
|
|
|
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
|
Operating profit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current service cost |
|
|
(
|
|
(
|
|
(
|
|
(
|
|
(
|
|
(
|
|
(
|
|
(
|
|
(
|
|
|
Past service (cost)/credit |
|
|
(
|
|
(
|
|
|
|
(
|
|
|
|
– |
|
(
|
|
|
|
|
|
|
Expenses |
|
|
(
|
|
– |
|
– |
|
(
|
|
(
|
|
(
|
|
– |
|
(
|
|
(
|
|
|
Total charge to Operating profit |
|
|
(
|
|
(
|
|
(
|
|
(
|
|
(
|
|
(
|
|
(
|
|
(
|
|
(
|
|
|
Finance expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income on scheme assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense on post-retirement scheme obligations |
|
|
(
|
|
(
|
|
(
|
|
(
|
|
(
|
|
(
|
|
(
|
|
(
|
|
(
|
|
|
Net interest on post-employment defined benefit plan liabilities |
|
|
(
|
|
(
|
|
(
|
|
(
|
|
(
|
|
– |
|
(
|
|
(
|
|
(
|
|
|
Charge before taxation |
|
|
(
|
|
(
|
|
(
|
|
(
|
|
(
|
|
(
|
|
(
|
|
(
|
|
(
|
|
|
Other comprehensive income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Difference between the actual return and the expected return on the post-retirement scheme assets |
|
|
(
|
|
|
|
– |
|
(
|
|
(
|
|
|
|
|
|
(
|
|
(
|
|
|
Experience gains/(losses) arising on the post-retirement scheme obligations |
|
|
|
|
(
|
|
(
|
|
(
|
|
(
|
|
(
|
|
(
|
|
(
|
|
(
|
|
|
Changes in financial assumptions underlying the present value of the post-retirement scheme obligations |
|
|
|
|
|
|
|
|
|
|
(
|
|
(
|
|
(
|
|
|
|
(
|
|
|
Changes in demographic assumptions |
|
|
(
|
|
(
|
|
|
|
(
|
|
|
|
– |
|
– |
|
(
|
|
|
|
|
Remeasurement of the defined benefit liability |
|
|
|
|
|
|
|
|
|
|
(
|
|
(
|
|
(
|
|
(
|
|
(
|
|
Past service cost includes granting early retirement in UK and Sweden.
Total Group pension costs in respect of defined contribution and defined benefit schemes during the year are set out below (see Note 29).
|
|
|
|
|
2024 |
|
2023 |
|
|
|
|
|
|
$m |
|
$m |
|
|
Defined contribution plans |
|
|
|
|
|
|
|
|
Defined benefit plans − Current service cost and Expenses |
|
|
|
|
|
|
|
|
Defined benefit plans − Past service cost/(credit) |
|
|
|
|
|
(
|
|
|
Pension costs |
|
|
|
|
|
|
|
Rate sensitivities
The following tables show the US dollar effect of a change in the significant actuarial assumptions used to determine the retirement benefits obligations in our two main defined benefit pension obligation countries.
|
|
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
+
|
|
|
|
+
|
|
|
|
|
Discount rate |
|
|
|
|
|
|
|
|
|
|
UK ($m) |
|
|
|
(
|
|
|
|
(
|
|
|
Sweden ($m) |
|
|
|
(
|
|
|
|
(
|
|
|
Total ($m) |
|
|
|
(
|
|
|
|
(
|
|
|
|
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
+
|
|
|
|
+
|
|
|
|
|
Inflation rate 1 |
|
|
|
|
|
|
|
|
|
|
UK ($m) |
|
(
|
|
|
|
(
|
|
|
|
|
Sweden ($m) |
|
(
|
|
|
|
(
|
|
|
|
|
Total ($m) |
|
(
|
|
|
|
(
|
|
|
|
|
|
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
+
|
|
|
|
+
|
|
|
|
|
Rate of increase in salaries |
|
|
|
|
|
|
|
|
|
|
UK ($m) |
|
n/a |
|
n/a |
|
n/a |
|
n/a |
|
|
Sweden ($m) |
|
(
|
|
|
|
(
|
|
|
|
|
Total ($m) |
|
(
|
|
|
|
(
|
|
|
|
|
|
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortality rate |
|
|
|
|
|
|
|
|
|
|
UK ($m) |
|
(
|
2 |
|
3 |
(
|
|
|
|
|
Sweden ($m) |
|
(
|
|
|
|
(
|
|
|
|
|
Total ($m) |
|
(
|
|
|
|
(
|
|
|
|
| 1 | Rate of increase in pensions in payment follows inflation. |
F-41
Due to market conditions at 31 December 2023 the following additional sensitivities for
The sensitivity to the financial assumptions shown above has been estimated taking into account the approximate duration of the liabilities and the overall profile of the plan membership.
The inflation sensitivity allows for the impact of a change in inflation on salary increases and pension increases (where these assumptions are inflation-linked).
The salary increase sensitivity reflects the impact of an increase of only salary relative to inflation.
The sensitivity to the life expectancy assumption is estimated based on a revised mortality assumption that extends/reduces the current life expectancy by one year for a particular age.
23 Reserves
Retained earnings
The cumulative amount of goodwill written off directly to reserves resulting from acquisitions, net of disposals, amounted to $
At 31 December 2024,
There are no significant statutory or contractual restrictions on the distribution of current profits of subsidiaries; undistributed profits of prior years are, in the main, permanently employed in the businesses of these companies. The undistributed income of AstraZeneca companies overseas might be liable to overseas taxes and/or UK taxation (after allowing for double taxation relief) if they were to be distributed as dividends (see Note 4).
|
|
|
2024 |
|
2023 |
|
2022 |
|
|
|
|
$m |
|
$m |
|
$m |
|
|
Cumulative translation differences included within Retained earnings |
|
|
|
|
|
|
|
|
At 1 January |
|
(
|
|
(
|
|
(
|
|
|
Foreign exchange arising on consolidation |
|
(
|
|
|
|
(
|
|
|
Exchange adjustments on goodwill (recorded against other reserves) |
|
(
|
|
|
|
(
|
|
|
Foreign exchange arising on designated liabilities in net investment hedges 1 |
|
(
|
|
|
|
(
|
|
|
Fair value movements on derivatives designated in net investment hedges |
|
|
|
|
|
(
|
|
|
Net exchange movement in Retained earnings |
|
(
|
|
|
|
(
|
|
|
At 31 December |
|
(
|
|
(
|
|
(
|
|
| 1 |
Foreign exchange arising on designated liabilities in net investment hedges includes $
|
The cumulative loss with respect to costs of hedging is $
The balance remaining in the foreign currency translation reserve from net investment hedging relationships for which hedge accounting no longer applied is a gain of $
Other reserves
The other reserves arose from the cancellation of £
Following an amendment to the Employee Benefit Trust (EBT) Deed on 10 June 2024, AstraZeneca obtained control and commenced consolidation of the EBT. The value of shares held by the consolidated EBTs will be reflected as an adjustment against Other reserves.
24 Share capital
|
|
|
|
|
Allotted, called-up and fully paid |
|
||
|
|
|
2024 |
|
2023 |
|
2022 |
|
|
|
|
$m |
|
$m |
|
$m |
|
|
Issued Ordinary Shares ($
|
|
|
|
|
|
|
|
|
Redeemable Preference Shares (£
|
|
– |
|
– |
|
– |
|
|
At 31 December |
|
|
|
|
|
|
|
The Redeemable Preference Shares carry limited class-voting rights and
The Company does not have a limited amount of authorised share capital.
The movements in the number of Ordinary Shares during the year can be summarised as follows:
|
|
|
|
|
|
|
No. of shares |
|
|
|
|
2024 |
|
2023 |
|
2022 |
|
|
At 1 January |
|
|
|
|
|
|
|
|
Issue of shares (share schemes) |
|
|
|
|
|
|
|
|
At 31 December |
|
|
|
|
|
|
|
Share issues
Issue of shares (share schemes) represents share capital issued as part of the Group’s equity incentivisation schemes (see Note 29).
F-42
Share repurchases
Shares held by subsidiaries
At 31 December 2024, AstraZeneca-controlled Employee Benefit Trust arrangements held
25 Dividends to shareholders
|
|
|
|
2024 |
|
|
2023 |
|
|
2022 |
|
2024 |
|
2023 |
|
2022 |
|
|
|
|
|
Per share |
|
|
Per share |
|
|
Per share |
|
$m |
|
$m |
|
$m |
|
|
Second interim (March 2024) |
|
|
$
|
|
|
$
|
|
|
$
|
|
|
|
|
|
|
|
|
First interim (September 2024) |
|
|
$
|
|
|
$
|
|
|
$
|
|
|
|
|
|
|
|
|
Total |
|
|
$
|
|
|
$
|
|
|
$
|
|
|
|
|
|
|
|
The Company has exercised its authority in accordance with the provisions set out in the Company’s Articles of Association, that the balance of unclaimed dividends outstanding past
The 2023 second interim dividend of $
Reconciliation of dividends charged to equity to the Consolidated Statement of Cash Flows:
|
|
|
|
|
2024 |
|
2023 |
|
2022 |
|
|
|
|
|
$m |
|
$m |
|
$m |
|
Dividends charged to equity |
|
|
|
|
|
|
|
|
|
Exchange losses on payment of dividend |
|
|
|
|
|
|
|
|
|
Hedge contracts relating to payment of dividends (Consolidated Statement of Cash Flows) |
|
|
|
|
|
(
|
|
(
|
|
Dividends paid to non-controlling interests |
|
|
|
|
|
|
|
– |
|
Net movement of unclaimed dividends in the year |
|
|
|
|
|
|
|
– |
|
Dividends paid (Consolidated Statement of Cash Flows) |
|
|
|
|
|
|
|
|
26 Non-controlling interests
The Group Financial Statements at 31 December 2024 reflect equity of $
27 Acquisitions of business operations
Acquisitions of business operations in 2024
Gracell
On 22 February 2024, AstraZeneca completed the acquisition of Gracell Biotechnologies Inc. (Gracell), a global clinical-stage biopharmaceutical company developing innovative cell therapies for the treatment of cancer and autoimmune-diseases. Gracell will operate as a wholly-owned subsidiary of AstraZeneca, with operations in China and the US.
The acquisition enriches AstraZeneca’s growing pipeline of cell therapies with AZD0120 (formerly GC012F), a novel, clinical-stage T-cell (CAR-T: therapeutic chimeric antigen receptor) therapy. AZD0120 is a potential new treatment for multiple myeloma, as well as other haematologic malignancies and autoimmune-diseases, including Systemic Lupus Erythematosus (SLE).
The transaction is recorded as a business combination using the acquisition method of accounting in accordance with IFRS 3 ‘Business Combinations’. Consequently, the assets acquired, and liabilities assumed are recorded at fair value. The purchase price allocation review has been completed.
|
|
|
Fair value |
|
|
|
|
$m |
|
|
Intangible assets |
|
|
|
|
Cash and cash equivalents 1 |
|
|
|
|
Net deferred tax liability |
|
(
|
|
|
Other immaterial net balances |
|
(
|
|
|
Total net assets acquired |
|
|
|
|
Goodwill |
|
|
|
|
Consideration |
|
|
|
| 1 |
Cash and cash equivalents acquired includes
$
|
The total consideration fair value of $
The net deferred tax liability of $
Goodwill of $
Gracell’s results have been consolidated into the Group’s results from 22 February 2024.
F-43
Fusion
On 4 June 2024, AstraZeneca completed the acquisition of Fusion Pharmaceuticals Inc., (Fusion) a clinical-stage biopharmaceutical company developing next-generation radioconjugates. The acquisition marks a major step forward in AstraZeneca delivering on its ambition to transform cancer treatment and outcomes for patients by replacing traditional regimens like chemotherapy and radiotherapy with more targeted treatments. As a result of the acquisition, Fusion became a wholly owned subsidiary of AstraZeneca, with operations in Canada and the US.
Immediately prior to the acquisition, AstraZeneca held approximately
This acquisition complements AstraZeneca’s leading oncology portfolio with the addition of the Fusion pipeline of radioconjugates, including their most advanced programme, FPI-2265, a potential new treatment for patients with metastatic castration-resistant prostate cancer (mCRPC), and brings new expertise and pioneering R&D, manufacturing and supply chain capabilities in actinium-based radioconjugates to AstraZeneca.
The transaction is recorded as a business combination using the acquisition method of accounting in accordance with IFRS 3 ‘Business Combinations’. Consequently, the assets acquired, and liabilities assumed are recorded at fair value. The purchase price allocation review has been completed.
|
|
|
Fair value |
|
|
|
|
$m |
|
|
Intangible assets |
|
|
|
|
Cash and cash equivalents |
|
|
|
|
Current investments |
|
|
|
|
Net deferred tax liability |
|
(
|
|
|
Other immaterial net balances |
|
|
|
|
Total net assets acquired |
|
|
|
|
Goodwill |
|
|
|
|
Consideration |
|
|
|
The total consideration fair value of $
The net deferred tax liability of $
Goodwill amounting to $
Fusion’s results have been consolidated into the Group’s results from 4 June 2024.
In December 2024, the intangible asset relating to product in development FPI-2059 was fully impaired by $
Acquisitions of business operations in 2023
On 16 January 2023, AstraZeneca completed the acquisition of Neogene Therapeutics Inc. (Neogene), a global clinical-stage biotechnology company pioneering the discovery, development and manufacturing of next-generation T-cell receptor therapies (TCR-Ts). The total consideration was $
Acquisitions of business operations in 2022
On 16 November 2022, AstraZeneca completed the acquisition of
28 Financial risk management objectives and policies
The Group’s principal financial instruments, other than derivatives, comprise bank overdrafts, loans and other borrowings, lease liabilities, current and non-current investments, cash and short-term deposits. The main purpose of these financial instruments is to manage the Group’s funding and liquidity requirements. The Group has other financial assets and liabilities such as trade receivables and trade payables, which arise directly from its operations.
The principal financial risks to which the Group is exposed are those of liquidity, interest rate, foreign currency and credit. Each of these is managed in accordance with Board-approved policies. These policies, together with the Group's approach to capital management, are set out below.
Capital management
The capital structure of the Group consists of Shareholders’ equity (Note 24), Debt (Note 19), Other current investments (Note 12) and Cash (Note 17). For the foreseeable future, the Board will maintain a capital structure that supports the Group’s strategic objectives through:
| > | managing funding and liquidity risk |
| > | optimising shareholder return |
| > | maintaining a strong, investment-grade credit rating. |
F-44
The Group utilises factoring arrangements and bank acceptance drafts discounting for selected trade receivables. These arrangements qualify for full derecognition of the associated trade receivables under IFRS 9 ‘Financial Instruments’. Amounts due on invoices that have not been factored at year end, from customers that are subject to these arrangements, are disclosed in Note 16.
Funding and liquidity risk are reviewed regularly by the Board and managed in accordance with the policies described below.
The Board regularly reviews its shareholders’ distribution policy, which comprises a regular cash dividend and potentially a share repurchase component.
The Group’s net debt position (loans and borrowings net of Cash and cash equivalents, Other investments and Derivative financial instruments) has increased by $
Liquidity risk
The Board reviews the Group’s ongoing liquidity risks annually as part of the planning process and on an ad hoc basis. The Board considers short-term requirements against available sources of funding, taking into account forecast cash flows. The Group manages liquidity risk by maintaining access to a number of sources of funding which are sufficient to meet anticipated funding requirements. Specifically, the Group uses US and European commercial paper, bank loans, committed bank facilities and cash resources to manage short-term liquidity and manages long-term liquidity by raising funds through the capital markets. At 31 December 2024, the Group was assigned short-term credit ratings of P-1 by Moody’s and A-1 by Standard and Poor’s. The Group’s long-term credit rating was A2 by Moody’s and A+ by Standard and Poor’s.
In addition to Cash and cash equivalents of $
At 31 December 2024, the Group has $
The maturity profile of the anticipated future contractual cash flows including interest in relation to the Group’s financial liabilities, on an undiscounted basis, which therefore differs from both the carrying value and fair value, is as follows:
|
|
|
Bank |
|
|
|
|
|
|
|
Total |
|
Derivative |
|
Derivative |
|
Total |
|
|
|
|
|
|
overdrafts |
|
|
|
|
|
Trade |
|
non-derivative |
|
financial |
|
financial |
|
derivative |
|
|
|
|
|
|
and other |
|
Bonds and |
|
Lease |
|
and other |
|
financial |
|
instruments |
|
instruments |
|
financial |
|
|
|
|
|
|
loans |
|
bank loans |
|
liabilities |
|
payables |
|
instruments |
|
receivable |
|
payable |
|
instruments |
|
Total |
|
|
|
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
|
Within one year |
|
|
|
|
|
|
|
|
|
|
|
(
|
|
|
|
|
|
|
|
|
In one to two years |
|
– |
|
|
|
|
|
|
|
|
|
(
|
|
|
|
|
|
|
|
|
In two to three years |
|
– |
|
|
|
|
|
|
|
|
|
(
|
|
|
|
|
|
|
|
|
In three to four years |
|
– |
|
|
|
|
|
|
|
|
|
(
|
|
|
|
– |
|
|
|
|
In four to five years |
|
– |
|
|
|
|
|
|
|
|
|
(
|
|
|
|
|
|
|
|
|
In more than five years |
|
– |
|
|
|
|
|
|
|
|
|
(
|
|
|
|
(
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(
|
|
|
|
|
|
|
|
|
Effect of interest |
|
(
|
|
(
|
|
– |
|
– |
|
(
|
|
|
|
(
|
|
(
|
|
(
|
|
|
Effect of discounting, fair values and issue costs |
|
– |
|
(
|
|
(
|
|
(
|
|
(
|
|
|
|
|
|
|
|
(
|
|
|
31 December 2022 |
|
|
|
|
|
|
|
|
|
|
|
(
|
|
|
|
|
|
|
|
|
|
|
Bank |
|
|
|
|
|
|
|
Total |
|
Derivative |
|
Derivative |
|
Total |
|
|
|
|
|
|
overdrafts |
|
|
|
|
|
Trade |
|
non-derivative |
|
financial |
|
financial |
|
derivative |
|
|
|
|
|
|
and other |
|
Bonds and |
|
Lease |
|
and other |
|
financial |
|
instruments |
|
instruments |
|
financial |
|
|
|
|
|
|
loans |
|
bank loans |
|
liabilities |
|
payables |
|
instruments |
|
receivable |
|
payable |
|
instruments |
|
Total |
|
|
|
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
|
Within one year |
|
|
|
|
|
|
|
|
|
|
|
(
|
|
|
|
|
|
|
|
|
In one to two years |
|
– |
|
|
|
|
|
|
|
|
|
(
|
|
|
|
|
|
|
|
|
In two to three years |
|
– |
|
|
|
|
|
|
|
|
|
(
|
|
|
|
|
|
|
|
|
In three to four years |
|
– |
|
|
|
|
|
|
|
|
|
(
|
|
|
|
(
|
|
|
|
|
In four to five years |
|
– |
|
|
|
|
|
|
|
|
|
(
|
|
|
|
|
|
|
|
|
In more than five years |
|
– |
|
|
|
|
|
|
|
|
|
(
|
|
|
|
(
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(
|
|
|
|
(
|
|
|
|
|
Effect of interest |
|
(
|
|
(
|
|
– |
|
– |
|
(
|
|
|
|
(
|
|
(
|
|
(
|
|
|
Effect of discounting, fair values and issue costs |
|
– |
|
(
|
|
(
|
|
(
|
|
(
|
|
|
|
(
|
|
(
|
|
(
|
|
|
31 December 2023 |
|
|
|
|
|
|
|
|
|
|
|
(
|
|
|
|
(
|
|
|
|
F-45
|
|
|
Bank |
|
|
|
|
|
|
|
Total |
|
Derivative |
|
Derivative |
|
Total |
|
|
|
|
|
|
overdrafts |
|
|
|
|
|
Trade |
|
non-derivative |
|
financial |
|
financial |
|
derivative |
|
|
|
|
|
|
and other |
|
Bonds and |
|
Lease |
|
and other |
|
financial |
|
instruments |
|
instruments |
|
financial |
|
|
|
|
|
|
loans |
|
bank loans |
|
liabilities |
|
payables |
|
instruments |
|
receivable |
|
payable |
|
instruments |
|
Total |
|
|
|
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
|
Within one year |
|
|
|
|
|
|
|
|
|
|
|
(
|
|
|
|
|
|
|
|
|
In one to two years |
|
– |
|
|
|
|
|
|
|
|
|
(
|
|
|
|
|
|
|
|
|
In two to three years |
|
– |
|
|
|
|
|
|
|
|
|
(
|
|
|
|
|
|
|
|
|
In three to four years |
|
– |
|
|
|
|
|
|
|
|
|
(
|
|
|
|
|
|
|
|
|
In four to five years |
|
– |
|
|
|
|
|
– |
|
|
|
(
|
|
|
|
(
|
|
|
|
|
In more than five years |
|
– |
|
|
|
|
|
– |
|
|
|
(
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(
|
|
|
|
|
|
|
|
|
Effect of interest |
|
(
|
|
(
|
|
– |
|
– |
|
(
|
|
|
|
(
|
|
(
|
|
(
|
|
|
Effect of discounting, fair values and issue costs |
|
– |
|
(
|
|
(
|
|
(
|
|
(
|
|
|
|
(
|
|
(
|
|
(
|
|
|
31 December 2024 |
|
|
|
|
|
|
|
|
|
|
|
(
|
|
|
|
(
|
|
|
|
Where interest payments are on a floating rate basis, it is assumed that rates will remain unchanged from the last business day of each year ended 31 December.
It is not expected that the cash flows in the maturity profile could occur significantly earlier or at significantly different amounts, with the exception of $
Market risk
Interest rate risk
The Group maintains a Board-approved mix of fixed and floating rate debt and uses underlying debt, interest rate swaps and forward rate agreements to manage this mix.
The majority of surplus cash is currently invested in US dollar liquidity funds.
The interest rate profile of the Group’s interest-bearing financial instruments is set out below. In the case of current and non-current financial liabilities, the classification includes the impact of interest rate swaps which convert the debt to floating rate.
|
|
|
|
|
|
|
2024 |
|
|
|
|
|
2023 |
|
|
|
|
|
2022 |
|
|
|
|
Fixed rate |
|
Floating rate |
|
Total |
|
Fixed rate |
|
Floating rate |
|
Total |
|
Fixed rate |
|
Floating rate |
|
Total |
|
|
|
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
|
Financial liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current |
|
|
|
|
|
|
|
|
|
– |
|
|
|
|
|
|
|
|
|
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed deposits |
|
– |
|
– |
|
– |
|
– |
|
– |
|
– |
|
|
|
– |
|
|
|
|
Cash collateral pledged to counterparties |
|
– |
|
|
|
|
|
– |
|
|
|
|
|
– |
|
|
|
|
|
|
Cash and cash equivalents |
|
– |
|
|
|
|
|
– |
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
– |
|
|
|
|
|
– |
|
|
|
|
|
|
|
|
|
|
|
In addition to the financial assets above, there are $
The Group is also exposed to market risk on other investments.
|
|
|
2024 |
|
2023 |
|
2022 |
|
|
|
|
$m |
|
$m |
|
$m |
|
|
Equity securities at fair value through Other comprehensive income (Note 12) |
|
|
|
|
|
|
|
|
Non-current fixed income securities at fair value through profit or loss (Note 12) |
|
– |
|
– |
|
|
|
|
Total |
|
|
|
|
|
|
|
Foreign currency risk
The US dollar is the Group’s most significant currency. As a consequence, the Group results are presented in US dollars and exposures are managed against US dollars accordingly.
Translational
Approximately
As at 31 December 2024, before the impact of derivatives or other forms of hedging, the Group held $
$
F-46
For further details of all designated hedging relationships please refer to the Hedge accounting section within this Note 28, from page 199. The accounting treatment for any hedge ineffectiveness is disclosed in the Bank and other borrowings accounting policy and the Foreign currencies accounting policy on page 158 within Group Accounting Policies.
As at 31 December 2024, the Group operates in
Transactional
The Group aims to hedge all its forecasted major transactional currency exposures on working capital balances, which typically extend for up to
Sensitivity analysis
The sensitivity analysis set out below summarises the sensitivity of the market value of our financial instruments to hypothetical changes in market rates and prices. The range of variables chosen for the sensitivity analysis reflects our view of changes which are reasonably possible over a one-year period. Market values are the present value of future cash flows based on market rates and prices at the valuation date. For long-term debt, an increase in interest rates results in a decline in the fair value of debt.
The sensitivity analysis assumes an instantaneous
The exchange rate sensitivity analysis assumes an instantaneous
Each incremental
|
|
|
|
|
Interest rates |
|
|
|
Exchange rates |
|
|
31 December 2022 |
|
+
|
|
|
|
+
|
|
|
|
|
Increase/(decrease) in fair value of financial instruments ($m) |
|
|
|
(
|
|
|
|
(
|
|
|
Impact on profit: gain/(loss) ($m) |
|
– |
|
– |
|
|
|
(
|
|
|
Impact on equity: gain/(loss) ($m) |
|
– |
|
– |
|
|
|
(
|
|
|
|
|
|
|
Interest rates |
|
|
|
Exchange rates |
|
|
31 December 2023 |
|
+
|
|
|
|
+
|
|
|
|
|
Increase/(decrease) in fair value of financial instruments ($m) |
|
|
|
(
|
|
|
|
(
|
|
|
Impact on profit: gain/(loss) ($m) |
|
– |
|
– |
|
|
|
(
|
|
|
Impact on equity: gain/(loss) ($m) |
|
– |
|
– |
|
|
|
(
|
|
|
|
|
|
|
Interest rates |
|
|
|
Exchange rates |
|
|
31 December 2024 |
|
+
|
|
|
|
+
|
|
|
|
|
Increase/(decrease) in fair value of financial instruments ($m) |
|
|
|
(
|
|
|
|
(
|
|
|
Impact on profit: (loss)/gain ($m) |
|
– |
|
– |
|
(
|
|
|
|
|
Impact on equity: gain/(loss) ($m) |
|
– |
|
– |
|
|
|
(
|
|
Credit risk
The Group is exposed to credit risk on financial assets, such as cash investments, derivative instruments, and Trade and other receivables. The Group was also exposed in its Net asset position to its own credit risk in respect of the 2023 debentures which were accounted for at FVPL. Under IFRS 9, the effect of the losses and gains arising from own credit risk on the fair value of bonds designated at FVPL are recorded in Other comprehensive income.
Financial counterparty credit risk
The majority of the Group’s cash is centralised within the Group treasury entity and is subject to counterparty risk on the principal invested. The level of the Group’s cash investments and hence credit risk will depend on the cash flow generated by the Group and the timing of the use of that cash. The credit risk is mitigated through a policy of prioritising security and liquidity over return and, as such, cash is only invested in high credit-quality investments. Counterparty limits are set according to the assessed risk of each counterparty and exposures are monitored against these limits on a regular basis.
The Group’s principal financial counterparty credit risks at 31 December were as follows:
Current assets
|
|
|
2024 |
|
2023 |
|
2022 |
|
|
|
|
$m |
|
$m |
|
$m |
|
|
Cash at bank and in hand |
|
|
|
|
|
|
|
|
Money market liquidity funds |
|
|
|
|
|
|
|
|
Other short-term cash equivalents |
|
|
|
|
|
|
|
|
Total Cash and cash equivalents (Note 17) |
|
|
|
|
|
|
|
|
Fixed income securities at fair value through profit or loss (Note 12) |
|
|
|
|
|
|
|
|
Cash collateral pledged to counterparties (Note 12) |
|
|
|
|
|
|
|
|
Fixed deposits (Note 12) |
|
– |
|
– |
|
|
|
|
Total derivative financial instruments (Note 13) |
|
|
|
|
|
|
|
|
Current assets subject to credit risk |
|
|
|
|
|
|
|
F-47
Non-current assets
|
|
|
2024 |
|
2023 |
|
2022 |
|
|
|
|
$m |
|
$m |
|
$m |
|
|
Derivative financial instruments (Note 13) |
|
|
|
|
|
|
|
|
Non-current assets subject to credit risk |
|
|
|
|
|
|
|
The majority of the Group’s cash is invested in US dollar AAA-rated money market liquidity funds. The money market liquidity fund portfolios are managed by
All financial derivatives are transacted with commercial banks, in line with standard market practice. The Group has agreements with some bank counterparties whereby the parties agree to post cash collateral, for the benefit of the other, equivalent to the market valuation of the derivative positions above a predetermined threshold. The carrying value of such cash collateral held by the Group at 31 December 2024 was $
The impairment provision for other financial assets at 31 December 2024 was immaterial (2023: immaterial; 2022: immaterial).
Offsetting of financial assets and liabilities
Financial assets and liabilities are offset and the net amount reported in the Consolidated Statement of Financial Position where there is both a legally enforceable right and an intention to settle the balances on a net basis. There are also arrangements that would not normally meet the requirement for offsetting but may be offset in certain circumstances such as the termination of a contract or bankruptcy.
The tables below show the impact on the Consolidated Statement of Financial Position if all offset rights were exercised by the Group or its financial counterparties.
|
|
|
|
|
Related amounts not offset |
|
|
|
||
|
|
|
Gross financial |
|
Subject to master |
|
Financial |
|
Net |
|
|
|
|
assets/(liabilities) |
|
netting agreement |
|
instrument collateral |
|
Amount |
|
|
31 December 2022 |
|
$m |
|
$m |
|
$m |
|
$m |
|
|
Financial assets |
|
|
|
|
|
|
|
|
|
|
Derivatives |
|
|
|
(
|
|
(
|
|
|
|
|
Other investments 1 |
|
|
|
– |
|
(
|
|
|
|
|
Total assets |
|
|
|
(
|
|
(
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities |
|
|
|
|
|
|
|
|
|
|
Derivatives |
|
(
|
|
|
|
|
|
(
|
|
|
Other payables 1 |
|
(
|
|
– |
|
|
|
(
|
|
|
Total liabilities |
|
(
|
|
|
|
|
|
(
|
|
|
|
|
|
|
Related amounts not offset |
|
|
|
||
|
|
|
Gross financial |
|
Subject to master |
|
Financial |
|
Net |
|
|
|
|
assets/(liabilities) |
|
netting agreement |
|
instrument collateral |
|
Amount |
|
|
31 December 2023 |
|
$m |
|
$m |
|
$m |
|
$m |
|
|
Financial assets |
|
|
|
|
|
|
|
|
|
|
Derivatives |
|
|
|
(
|
|
(
|
|
|
|
|
Other investments 1 |
|
|
|
– |
|
(
|
|
|
|
|
Total assets |
|
|
|
(
|
|
(
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities |
|
|
|
|
|
|
|
|
|
|
Derivatives |
|
(
|
|
|
|
|
|
(
|
|
|
Other payables 1 |
|
(
|
|
– |
|
|
|
(
|
|
|
Total liabilities |
|
(
|
|
|
|
|
|
(
|
|
|
|
|
|
|
Related amounts not offset |
|
|
|
||
|
|
|
Gross financial |
|
Subject to master |
|
Financial |
|
Net |
|
|
|
|
assets/(liabilities) |
|
netting agreement |
|
instrument collateral |
|
Amount |
|
|
31 December 2024 |
|
$m |
|
$m |
|
$m |
|
$m |
|
|
Financial assets |
|
|
|
|
|
|
|
|
|
|
Derivatives |
|
|
|
(
|
|
(
|
|
|
|
|
Other investments 1 |
|
|
|
– |
|
(
|
|
|
|
|
Total assets |
|
|
|
(
|
|
(
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities |
|
|
|
|
|
|
|
|
|
|
Derivatives |
|
(
|
|
|
|
|
|
(
|
|
|
Other payables 1 |
|
(
|
|
– |
|
|
|
(
|
|
|
Total liabilities |
|
(
|
|
|
|
|
|
(
|
|
| 1 | Balances are collateral pledged/received. |
Trade receivables
Trade receivable exposures are managed locally in the operating units where they arise and credit limits are set as deemed appropriate for the customer. The Group is exposed to customers ranging from government-backed agencies and large private wholesalers to privately-owned pharmacies, and the underlying local economic and sovereign risks vary throughout the world. Where appropriate, the Group endeavours to minimise risks by the use of trade finance instruments such as letters of credit and insurance. The Group applies the expected credit loss approach to establish an allowance for impairment that represents its estimate of expected losses in respect of Trade receivables.
The Group applies the IFRS 9 simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance to Trade receivables. To measure expected credit losses, Trade receivables have been grouped based on shared credit characteristics and the days past due.
F-48
The expected loss rates are based on payment profiles over a period of
On that basis, the loss allowance was determined as follows:
|
|
|
|
|
0-90 days |
|
90-180 days |
|
Over 180 days |
|
|
|
|
31 December 2022 |
|
Current |
|
past due |
|
past due |
|
past due |
|
Total |
|
|
Expected loss rate |
|
|
% |
|
% |
|
% |
|
% |
|
|
|
Gross carrying amount ($m) |
|
|
|
|
|
|
|
|
|
|
|
|
Loss allowance ($m) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0-90 days |
|
90-180 days |
|
Over 180 days |
|
|
|
|
31 December 2023 |
|
Current |
|
past due |
|
past due |
|
past due |
|
Total |
|
|
Expected loss rate |
|
|
% |
|
% |
|
% |
|
% |
|
|
|
Gross carrying amount ($m) |
|
|
|
|
|
|
|
|
|
|
|
|
Loss allowance ($m) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0-90 days |
|
90-180 days |
|
Over 180 days |
|
|
|
|
31 December 2024 |
|
Current |
|
past due |
|
past due |
|
past due |
|
Total |
|
|
Expected loss rate |
|
|
% |
|
% |
|
% |
|
% |
|
|
|
Gross carrying amount ($m) |
|
|
|
|
|
|
|
|
|
|
|
|
Loss allowance ($m) |
|
|
|
|
|
|
|
|
|
|
|
Trade receivables are written off where there is no reasonable expectation of recovery.
Impairment losses on Trade receivables are presented as net impairment losses within Operating profit, any subsequent recoveries are credited against the same line.
In the US, sales to
The movements of the Group expected credit losses provision are as follows:
|
|
|
2024 |
|
2023 |
|
2022 |
|
|
|
|
$m |
|
$m |
|
$m |
|
|
At 1 January |
|
|
|
|
|
|
|
|
Net movement recognised in the Consolidated Statement of Comprehensive Income |
|
(
|
|
(
|
|
|
|
|
Amounts utilised, exchange and other movements |
|
(
|
|
– |
|
(
|
|
|
At 31 December |
|
|
|
|
|
|
|
Given the profile of our customers, including large wholesalers and government-backed agencies, no further credit risk has been identified with the Trade receivables not past due other than those balances for which an allowance has been made.
Hedge accounting
The Group uses foreign currency borrowings, foreign currency forwards and swaps, currency options, interest rate swaps and cross-currency interest rate swaps for the purpose of hedging its foreign currency and interest rate risks. The Group may designate certain financial instruments as fair value hedges, cash flow hedges or net investment hedges in accordance with IFRS 9. Hedge effectiveness is determined at the inception of the hedge relationship, and through periodic prospective effectiveness assessments to ensure that an economic relationship exists between the hedged item and hedging instrument. Sources of hedge effectiveness will depend on the hedge relationship designation but may include:
| > | a significant change in the credit risk of either party to the hedging relationship |
| > | a timing mismatch between the hedging instrument and the hedged item |
| > | movements in foreign currency basis spread for derivatives in a fair value hedge |
| > | a significant change in the value of the foreign currency-denominated net assets of the Group in a net investment hedge. |
The hedge ratio for each designation will be established by comparing the quantity of the hedging instrument and the quantity of the hedged item to determine their relative weighting, for all of the Group’s existing hedge relationships the hedge ratio has been determined as
The following table represents the Group’s continuing designated hedge relationships under IFRS 9.
2022
|
|
|
|
|
|
|
Other comprehensive income |
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
Fair value |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(gain)/loss |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Opening |
|
Fair value |
|
recycled |
|
Closing |
|
|
|
|
|
|
|
|
|
|
Nominal |
|
|
|
balance |
|
(gain)/loss |
|
to the |
|
balance |
|
|
|
|
|
Average |
|
|
|
|
amounts |
|
Carrying |
|
1 January |
|
deferred |
|
Income |
|
31 December |
|
Average |
|
Average |
|
pay |
|
|
|
|
in local |
|
value |
|
2022 |
|
to OCI |
|
statement |
|
2022 |
|
maturity |
|
USD FX |
|
interest |
|
|
|
|
currency |
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
year |
|
rate |
|
rate |
|
|
Cash flow hedges – foreign currency and interest rate risk 1, 3, 4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cross-currency interest rate swaps – Euro bonds |
|
EUR
|
|
(
|
|
|
|
|
|
(
|
|
|
|
2026 |
|
|
|
USD
|
|
|
FX Forwards − short-term FX risk |
|
USD
|
|
(
|
|
(
|
|
(
|
|
|
|
|
|
2023 |
|
– |
|
– |
|
|
Net investment hedge – foreign exchange risk 2, 3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transactions matured pre-2022 |
|
|
|
– |
|
(
|
|
– |
|
– |
|
(
|
|
– |
|
– |
|
– |
|
|
Cross-currency interest rate swap – JPY investment |
|
JPY
|
|
|
|
(
|
|
|
|
– |
|
(
|
|
2029 |
|
|
|
JPY
|
|
|
Cross-currency interest rate swap – CNY investment |
|
CNY
|
|
(
|
|
|
|
|
|
– |
|
|
|
2026 |
|
|
|
CNY
|
|
|
Foreign currency borrowing – GBP investment |
|
GBP
|
|
|
|
(
|
|
(
|
|
– |
|
(
|
|
2031 |
|
n/a |
|
GBP
|
|
|
Foreign currency borrowing – EUR investment 5 |
|
EUR
|
|
|
|
(
|
|
(
|
|
– |
|
(
|
|
2029 |
|
n/a |
|
EUR
|
|
F-49
|
Contingent consideration liabilities and Acerta Pharma share purchase liability – AZUK and AZAB USD investments |
|
USD
|
|
(
|
|
|
|
|
|
– |
|
|
|
– |
|
– |
|
– |
|
2023
|
|
|
|
|
|
|
Other comprehensive income |
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
Fair value |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(gain)/loss |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Opening |
|
Fair value |
|
recycled |
|
Closing |
|
|
|
|
|
|
|
|
|
|
Nominal |
|
|
|
balance |
|
(gain)/loss |
|
to the |
|
balance |
|
|
|
|
|
Average |
|
|
|
|
amounts |
|
Carrying |
|
1 January |
|
deferred |
|
Income |
|
31 December |
|
Average |
|
Average |
|
pay |
|
|
|
|
in local |
|
value |
|
2023 |
|
to OCI |
|
statement |
|
2023 |
|
maturity |
|
USD FX |
|
interest |
|
|
|
|
currency |
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
year |
|
rate |
|
rate |
|
|
Cash flow hedges – foreign currency and interest rate risk 1, 3, 4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cross-currency interest rate swaps – Euro bonds |
|
EUR
|
|
|
|
|
|
(
|
|
|
|
(
|
|
2027 |
|
|
|
USD
|
|
|
FX Forwards − short-term FX risk |
|
USD
|
|
|
|
|
|
(
|
|
|
|
(
|
|
2024 |
|
– |
|
– |
|
|
Net investment hedge – foreign exchange risk 2, 3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transactions matured pre-2023 |
|
|
|
– |
|
(
|
|
– |
|
– |
|
(
|
|
– |
|
– |
|
– |
|
|
Cross-currency interest rate swap – JPY investment |
|
JPY
|
|
|
|
(
|
|
(
|
|
– |
|
(
|
|
2029 |
|
|
|
JPY
|
|
|
Cross-currency interest rate swap – CNY investment |
|
CNY
|
|
(
|
|
|
|
(
|
|
– |
|
|
|
2026 |
|
|
|
CNY
|
|
|
Foreign currency borrowing – GBP investment |
|
GBP
|
|
|
|
(
|
|
|
|
– |
|
(
|
|
2031 |
|
n/a |
|
GBP
|
|
|
Foreign currency borrowing – EUR investment 5 |
|
EUR
|
|
|
|
(
|
|
|
|
– |
|
(
|
|
2029 |
|
n/a |
|
EUR
|
|
|
Contingent consideration liabilities and Acerta Pharma share purchase liability – AZUK and AZAB USD investments |
|
USD
|
|
(
|
|
|
|
(
|
|
– |
|
|
|
– |
|
– |
|
– |
|
2024
|
|
|
|
|
|
|
Other comprehensive income |
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
Fair value |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(gain)/loss |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Opening |
|
Fair value |
|
recycled |
|
Closing |
|
|
|
|
|
|
|
|
|
|
Nominal |
|
|
|
balance |
|
(gain)/loss |
|
to the |
|
balance |
|
|
|
|
|
Average |
|
|
|
|
amounts |
|
Carrying |
|
1 January |
|
deferred |
|
Income |
|
31 December |
|
Average |
|
Average |
|
pay |
|
|
|
|
in local |
|
value |
|
2024 |
|
to OCI |
|
statement |
|
2024 |
|
maturity |
|
USD FX |
|
interest |
|
|
|
|
currency |
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
year |
|
rate |
|
rate |
|
|
Cash flow hedges – foreign currency and interest rate risk 1, 3, 4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cross-currency interest rate swaps – Euro bonds |
|
EUR
|
|
(
|
|
(
|
|
|
|
(
|
|
(
|
|
2029 |
|
|
|
USD
|
|
|
FX Forwards − short-term FX risk |
|
USD
|
|
|
|
(
|
|
|
|
|
|
(
|
|
2025 |
|
– |
|
– |
|
|
Net investment hedge – foreign exchange risk 2, 3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transactions matured pre-2024 |
|
|
|
– |
|
(
|
|
– |
|
– |
|
(
|
|
– |
|
– |
|
– |
|
|
Cross-currency interest rate swap – JPY investment |
|
JPY
|
|
|
|
(
|
|
(
|
|
– |
|
(
|
|
2029 |
|
|
|
JPY
|
|
|
Cross-currency interest rate swap – CNY investment |
|
CNY
|
|
|
|
|
|
(
|
|
– |
|
(
|
|
2026 |
|
|
|
CNY
|
|
|
Foreign currency borrowing – GBP investment |
|
GBP
|
|
|
|
(
|
|
(
|
|
– |
|
(
|
|
2031 |
|
n/a |
|
GBP
|
|
|
Foreign currency borrowing – EUR investment 5 |
|
EUR
|
|
|
|
(
|
|
(
|
|
– |
|
(
|
|
2029 |
|
n/a |
|
EUR
|
|
|
Contingent consideration liabilities and Acerta Pharma share purchase liability – AZUK and AZAB USD investments |
|
USD
|
|
(
|
|
|
|
|
|
– |
|
|
|
– |
|
– |
|
– |
|
| 1 |
Hedge ineffectiveness recognised on swaps designated in a cash flow hedge during the period was $
|
| 2 |
Hedge ineffectiveness recognised on swaps designated in a net investment hedge during the period was $
|
| 3 | Fair value movements on cross-currency interest rate swaps in cash flow hedge and net investment hedge relationships are shown inclusive of the impact of costs of hedging. |
| 4 |
Nominal amount of FX forwards in a cash flow hedge of
$
|
| 5 |
The EUR
|
Key controls applied to transactions in derivative financial instruments are to use only instruments where good market liquidity exists, to revalue all financial instruments regularly using current market rates and to sell options only to offset previously purchased options or as part of a risk management strategy. The Group is not a net seller of options, and does not use derivative financial instruments for speculative purposes. The Group held
The table below summarises the change in the fair value of hedging instruments and the hedged item designated in a fair value hedging relationship used to calculate ineffectiveness in the period. The hedge relates to the EUR 2030 and EUR 2033 bonds issued during 2024, consequently there are no prior year comparatives.
|
|
|
|
|
Change in fair value |
|
Change in fair value |
|
Hedge |
|
|
|
|
Nominal |
|
of hedging instrument |
|
of hedged item |
|
ineffectiveness |
|
|
|
|
amounts in |
|
used to calculate |
|
used to calculate |
|
recognised in |
|
|
As at 31 December 2024 |
|
currency |
|
ineffectiveness |
|
ineffectiveness |
|
profit and loss |
|
|
Interest rate and foreign currency risk on finance debt |
|
EUR
|
|
(
|
|
|
|
(
|
|
29 Employee costs and share plans for employees
Employee costs
The monthly average number of people, to the nearest hundred, employed by the Group is set out in the table below. In accordance with the Companies Act 2006, this includes part-time employees.
|
|
|
2024 |
|
2023 |
|
2022 |
|
|
Employees |
|
|
|
|
|
|
|
|
UK |
|
|
|
|
|
|
|
|
Rest of Europe |
|
|
|
|
|
|
|
|
The Americas |
|
|
|
|
|
|
|
|
Asia, Africa & Australasia |
|
|
|
|
|
|
|
|
Continuing operations |
|
|
|
|
|
|
|
F-50
Geographical distribution described in the table above is by location of legal entity employing staff. Certain staff will undertake some or all of their activity in a different location.
The number of people employed by the Group at the end of 2024 was
The costs incurred during the year in respect of these employees were:
|
|
|
2024 |
|
2023 |
|
2022 |
|
|
|
|
$m |
|
$m |
|
$m |
|
|
Wages and salaries |
|
|
|
|
|
|
|
|
Social security costs |
|
|
|
|
|
|
|
|
Pension costs |
|
|
|
|
|
|
|
|
Other employment costs |
|
|
|
|
|
|
|
|
Total |
|
|
|
|
|
|
|
Severance costs of $
The charge for share-based payments in respect of share plans is $
The Directors believe that, together with the basic salary system, the Group’s employee incentive schemes provide competitive and market-related packages to motivate employees. They should also align the interests of employees with those of shareholders, as a whole, through long-term share ownership in the Company. The Group’s current US, UK and Swedish schemes are described below; other arrangements apply elsewhere.
Bonus and share plans
US
In the US, there are
UK
The AstraZeneca UK Performance Bonus Plan
Employees of participating AstraZeneca UK companies are invited to participate in this bonus plan, which rewards strong individual performance. Bonuses are paid in cash.
The AstraZeneca UK All-Employee Share Plans
AstraZeneca Share Incentive Plan (SIP)
The Company offers UK employees the opportunity to buy Partnership Shares (Ordinary Shares). Employees may invest up to £
AstraZeneca Sharesave Plan
The Company provides UK employees with the opportunity to participate in the HMRC-approved Sharesave Plan. Employees can choose between a
or
savings contract, allowing them to contribute a minimum of £
Sweden
In Sweden, an all-employee performance bonus plan is in operation, which rewards strong individual performance. Bonuses are paid
Other bonus and share plans that operate across the Group are described below.
The AstraZeneca Executive Annual Bonus Scheme
This scheme is a performance bonus scheme for Directors and senior employees who do not participate in the AstraZeneca UK Performance Bonus Plan. Annual bonuses are paid in cash and reflect both corporate and individual performance measures. The Remuneration Committee has discretion to reduce or withhold bonuses if business performance falls sufficiently short of expectations in any year such as to make the payment of bonuses inappropriate.
The AstraZeneca Deferred Bonus Plan
This plan was introduced in 2006 and is used to defer a portion of the bonus earned under the AstraZeneca Executive Annual Bonus Scheme into Ordinary Shares in the Company for a period of
The AstraZeneca Performance Share Plan
This plan was approved by shareholders in 2020 for a period of
F-51
The AstraZeneca Investment Plan
This plan was introduced in 2010 and approved by shareholders at the 2010 AGM. The final grant of awards under this plan took place in March 2016. Awards granted under the plan vest after
The AstraZeneca Global Restricted Stock Plan
The Global Restricted Stock Plan (GRSP) was introduced in 2010. This plan provides for the grant of restricted stock unit (RSU) awards to selected below SET-level employees and is used in conjunction with the AstraZeneca Performance Share Plan to provide a mix of RSUs and performance share units (PSUs). Awards typically vest on the third anniversary of the date of grant and are contingent on continued employment with the Company. The Remuneration Committee has responsibility for agreeing any awards under the plan and for setting the policy for the way in which the plan should be operated.
The AstraZeneca Restricted Share Plan
This plan was introduced in 2008 and provides for the grant of restricted stock unit (RSU) awards to key employees, excluding Executive Directors. Awards are made on an ad hoc basis with variable vesting dates. The plan has been used
The AstraZeneca Extended Incentive Plan
This plan was introduced in 2018 and provides for the grant of awards to key employees, excluding Executive Directors. Awards are made on an ad hoc basis and
Details of share options outstanding during the year for the main share plans are shown below:
|
|
|
The AstraZeneca
|
|
The AstraZeneca
|
|
The AstraZeneca
|
|
The AstraZeneca
|
|
||||||||
|
|
|
Ordinary Shares |
|
ADR Shares |
|
Ordinary Shares |
|
ADR Shares |
1 |
Ordinary Shares |
|
ADR Shares |
|
Ordinary Shares |
|
ADR Shares |
|
|
|
|
ʼ000 |
|
ʼ000 |
|
ʼ000 |
|
ʼ000 |
|
ʼ000 |
|
ʼ000 |
|
ʼ000 |
|
ʼ000 |
|
|
Outstanding at 1 January 2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Granted |
|
|
|
|
|
|
|
|
|
|
|
|
|
– |
|
– |
|
|
Forfeited |
|
(
|
|
(
|
|
(
|
|
(
|
|
(
|
|
(
|
|
(
|
|
– |
|
|
Cancelled |
|
– |
|
– |
|
– |
|
(
|
|
– |
|
– |
|
– |
|
– |
|
|
Exercised |
|
(
|
|
(
|
|
(
|
|
(
|
|
(
|
|
(
|
|
– |
|
– |
|
|
Outstanding at 31 December 2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Granted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forfeited |
|
(
|
|
(
|
|
(
|
|
(
|
|
(
|
|
(
|
|
(
|
|
– |
|
|
Cancelled |
|
– |
|
– |
|
– |
|
(
|
|
– |
|
– |
|
– |
|
(
|
|
|
Exercised |
|
(
|
|
(
|
|
(
|
|
(
|
|
(
|
|
(
|
|
(
|
|
(
|
|
|
Outstanding at 31 December 2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Granted |
|
|
|
|
|
|
|
|
|
|
|
|
|
– |
|
– |
|
|
Forfeited |
|
(
|
|
(
|
|
(
|
|
(
|
|
(
|
|
(
|
|
(
|
|
– |
|
|
Cancelled |
|
(
|
|
(
|
|
– |
|
(
|
|
(
|
|
– |
|
– |
|
– |
|
|
Exercised |
|
(
|
|
(
|
|
(
|
|
(
|
|
(
|
|
(
|
|
(
|
|
– |
|
|
Outstanding at 31 December 2024 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 1 | Shares issued to Alexion employees under the GRSP are covered under the Alexion employee share award below. |
|
|
|
The AstraZeneca
|
|
The AstraZeneca
|
|
The AstraZeneca
|
|
The AstraZeneca
|
|
||||||||
|
|
|
WAFV |
1 |
WAFV |
|
WAFV |
|
WAFV |
|
WAFV |
|
WAFV |
|
WAFV |
|
WAFV |
|
|
|
|
pence |
|
$ |
|
pence |
|
$ |
|
pence |
|
$ |
|
pence |
|
$ |
|
|
WAFV of 2022 grants |
|
|
|
|
|
|
|
|
|
|
|
|
|
– |
|
– |
|
|
WAFV of 2023 grants |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WAFV of 2024 grants |
|
|
|
|
|
|
|
|
|
|
|
|
|
– |
|
– |
|
| 1 | Weighted average fair value. |
Alexion employee share award plan
At acquisition in 2021 Alexion employee share awards were converted into AstraZeneca restricted stock awards that continue to have, and shall be subject to, the same terms and conditions as applied in the corresponding Alexion awards immediately prior to completion. The fair value at the grant date was $
The weighted average fair value for awards granted under the AstraZeneca Performance Share Plan is primarily based on the market price at the point of grant adjusted for the market-based performance elements which are valued using a Monte Carlo valuation model. The fair values of all other plans are set using the market price at the point of award. These awards are settled in equity including dividends accumulated from the date of award to vesting.
F-52
30 Commitments, contingent liabilities and contingent assets
|
|
|
2024 |
|
2023 |
|
2022 |
|
|
Commitments |
|
$m |
|
$m |
|
$m |
|
|
Contracts placed for future capital expenditure on Property, plant and equipment and
|
|
|
|
|
|
|
|
Guarantees and contingencies arising in the ordinary course of business, for which no security has been given, are not expected to result in any material financial loss.
Research and development collaboration payments
The Group has various ongoing collaborations, including in-licensing and similar arrangements with development partners. Such collaborations may require the Group to make payments on achievement of stages of development, launch or revenue milestones, although the Group generally has the right to terminate these agreements at no cost. The Group recognises research and development milestones as an intangible asset once it is committed to payment, which is generally when the Group reaches set trigger points in the development cycle. Revenue-related milestones are recognised as intangible assets on product launch at a value based on the Group’s long-term revenue forecasts for the related product. The table below indicates potential development and revenue-related payments that the Group may be required to make under such collaborations.
|
|
|
|
|
|
|
|
|
|
|
Years 5 |
|
|
|
|
Total |
|
Under 1 year |
|
Years 1 and 2 |
|
Years 3 and 4 |
|
and greater |
|
|
|
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
|
Future potential research and development milestone payments |
|
|
|
|
|
|
|
|
|
|
|
|
Future potential revenue milestone payments |
|
|
|
|
|
|
|
|
|
|
|
The table includes all potential payments for achievement of milestones under ongoing research and development arrangements. Revenue-related milestone payments represent the maximum possible amount payable on achievement of specified levels of revenue as set out in individual contract agreements, but exclude variable payments that are based on unit sales (e.g. royalty-type payments) which are expensed as the associated sale is recognised. The table excludes any payments already capitalised in the Financial Statements for the year ended 31 December 2024 which have been capitalised with reference to the latest Group sales forecasts for approved indications.
The future payments we disclose represent contracted payments and, as such, are not discounted and are not risk-adjusted. As detailed in the Risk Overview section from page 64, the development of any pharmaceutical product candidate is a complex and risky process that may fail at any stage in the development process due to a number of factors (including items such as failure to obtain regulatory approval, unfavourable data from key studies, adverse reactions to the product candidate or indications of other safety concerns). The timing of the payments is based on the Group’s current best estimate of achievement of the relevant milestone.
Environmental costs and liabilities
The Group’s expenditure on environmental protection, including both capital and revenue items, relates to costs that are necessary for implementing internal systems and programmes, and meeting legal and regulatory requirements for processes and products. This includes investment to conserve natural resources and otherwise minimise the impact of our activities on the environment.
They are an integral part of normal ongoing expenditure for carrying out the Group’s research, manufacturing and commercial operations and are not separated from overall operating and development costs. There are no known changes in legal, regulatory or other requirements resulting in material changes to the levels of expenditure for 2022, 2023 or 2024.
In addition to expenditure for meeting current and foreseen environmental protection requirements, the Group incurs costs in investigating and cleaning up legacy land and groundwater contamination. In particular, AstraZeneca has environmental liabilities at some currently or formerly owned, leased and third-party sites.
In the US, Zeneca Inc., and/or its indemnitees, have been named as potentially responsible parties (PRPs) or defendants at a number of sites where Zeneca Inc. is likely to incur future environmental investigation, remediation, operation and maintenance costs under federal, state, statutory or common law environmental liability allocation schemes (together, US Environmental Consequences). Similarly, Stauffer Management Company LLC (SMC), which was established to own and manage certain assets and liabilities of Stauffer Chemical Company, and/or its indemnitees, have been named as PRPs or defendants at a number of sites where SMC is likely to incur US Environmental Consequences.
AstraZeneca has also given indemnities to third parties for a number of sites outside the US. These environmental liabilities arise from legacy operations that are not currently part of the Group’s business and, at most of these sites, remediation, where required, is either completed or in progress. AstraZeneca has made provisions for the estimated costs of future environmental investigation, remediation, operation and maintenance activity beyond normal ongoing expenditure for maintaining the Group’s R&D and manufacturing capacity and product ranges, where a present obligation exists, it is probable that such costs will be incurred and they can be estimated reliably. With respect to such estimated future costs, there were provisions at 31 December 2024 in the aggregate of $
It is possible that AstraZeneca could incur future environmental costs beyond the extent of our current provisions. The extent of such possible additional costs is inherently difficult to estimate due to a number of factors, including: (1) the nature and extent of claims that may be asserted in the future; (2) whether AstraZeneca has or will have any legal obligation with respect to asserted or unasserted claims; (3) the type of remedial action, if any, that may be selected at sites where the remedy is presently not known; (4) the potential for recoveries from or allocation of liability to third parties; and (5) the length of time that the environmental investigation, remediation and liability allocation process can take. As per our provisions accounting policy on page 159, Provisions for these costs are made when there is a present obligation and where it is probable that expenditure on remedial work will be required and a reliable estimate can be made of the cost. Notwithstanding and subject to the foregoing, we estimate the potential additional loss for future environmental investigation, remediation, remedial operation and maintenance activity above and beyond our provisions to be, in aggregate, between $
Legal proceedings
AstraZeneca is involved in various legal proceedings considered typical to its business, including actual or threatened litigation and actual or potential government investigations relating to employment matters, product liability, commercial disputes, pricing, sales and marketing practices, infringement of IP rights, and the validity of certain patents and competition laws. The more significant matters are discussed below.
Most of the claims involve highly complex issues. Often these issues are subject to substantial uncertainties and, therefore, the probability of a loss, if any, being sustained and/or an estimate of the amount of any loss is difficult to ascertain.
F-53
Unless specifically identified below that a provision has been taken, AstraZeneca considers each of the claims to represent a contingent liability and discloses information with respect to the nature and facts of the cases in accordance with IAS 37 ‘Provisions, Contingent Liabilities and Contingent Assets’.
We do not believe that disclosure of the amounts sought by plaintiffs, if known, would be meaningful with respect to these legal proceedings. This is due to a number of factors, including (i) the stage of the proceedings (in many cases trial dates have not been set) and the overall length and extent of pre-trial discovery; (ii) the entitlement of the parties to an action to appeal a decision; (iii) clarity as to theories of liability, damages and governing law; (iv) uncertainties in timing of litigation; and (v) the possible need for further legal proceedings to establish the appropriate amount of damages, if any.
While there can be no assurance regarding the outcome of any of the legal proceedings referred to in this Note 30, based on management’s current and considered view of each situation, we do not currently expect them to have a material adverse effect on our financial position including within the next financial year. This position could of course change over time, not least because of the factors referred to above.
In cases that have been settled or adjudicated, or where quantifiable fines and penalties have been assessed and which are not subject to appeal (or other similar forms of relief), or where a loss is probable and we are able to make a reasonable estimate of the loss, we generally indicate the loss absorbed or make a provision for our best estimate of the expected loss.
Where it is considered that the Group is more likely than not to prevail, legal costs involved in defending the claim are charged to profit and loss as they are incurred.
Where it is considered that the Group has a valid contract which provides the right to reimbursement (from insurance or otherwise) of legal costs and/or all or part of any loss incurred or for which a provision has been established, and we consider recovery to be virtually certain, the best estimate of the amount expected to be received is recognised as an asset.
Assessments as to whether or not to recognise provisions or assets, and of the amounts concerned, usually involve a series of complex judgements about future events and can rely heavily on estimates and assumptions. AstraZeneca believes that the provisions recorded are adequate based on currently available information and that the insurance recoveries recorded will be received. However, given the inherent uncertainties involved in assessing the outcomes of these cases, and in estimating the amount of the potential losses and the associated insurance recoveries, we could in the future incur judgments or insurance settlements that could have a material adverse effect on our results in any particular period.
IP claims include challenges to the Group’s patents on various products or processes and assertions of non-infringement of patents. A loss in any of these cases could result in loss of patent protection on the related product.
The consequences of any such loss could be a significant decrease in Product Sales, which could have a material adverse effect on our results. The lawsuits filed by AstraZeneca for patent infringement against companies that have filed abbreviated new drug applications (ANDAs) in the US, seeking to market generic forms of products sold by the Group prior to the expiry of the applicable patents covering these products, typically also involve allegations of non-infringement, invalidity and unenforceability of these patents by the ANDA filers. In the event that the Group is unsuccessful in these actions or the statutory 30-month stay expires before a ruling is obtained, the ANDA filers involved will also have the ability, subject to FDA approval, to introduce generic versions of the product concerned.
AstraZeneca has full confidence in, and will vigorously defend and enforce, its IP.
Over the course of the past several years, including in 2024, a significant number of commercial litigation claims in which AstraZeneca is involved have been resolved, particularly in the US, thereby reducing potential contingent liability exposure arising from such litigation. Similarly, in part due to patent litigation and settlement developments, greater certainty has been achieved regarding possible generic entry dates with respect to some of our patented products. At the same time, like other companies in the pharmaceutical sector and other industries, AstraZeneca continues to be subject to government investigations around the world.
Patent litigation
Legal proceedings brought against AstraZeneca
|
Enhertu patent proceedings |
Considered to be a contingent liability |
|
US |
●
In October 2020, Seagen Inc. (Seagen) filed a complaint against Daiichi Sankyo Company, Limited (Daiichi Sankyo) in the US District Court for the Eastern District of Texas (District Court) alleging that
Enhertu
infringes a Seagen patent. AstraZeneca co-commercialises
Enhertu
with Daiichi Sankyo, Inc. in the US. After trial in April 2022, the jury found that the patent was infringed and awarded Seagen
$
●
In December 2020 and January 2021, AstraZeneca and Daiichi Sankyo, Inc. filed post-grant review (PGR) petitions with the US Patent and Trademark Office (USPTO) alleging, among other things, that the Seagen patent is invalid for lack of written description and enablement. The USPTO initially declined to institute the PGRs, but, in April 2022, the USPTO granted the rehearing requests and instituted both PGR petitions. Seagen subsequently disclaimed all patent claims at issue in
|
|
Faslodex patent proceedings |
Matter concluded |
|
Japan |
●
In 2021, in Japan, AstraZeneca received notice from the Japan Patent Office (JPO) that Sandoz K.K. (Sandoz) and Sun Pharma Japan Ltd. (Sun) were seeking to invalidate the
Faslodex
formulation patent.
●
AstraZeneca defended the challenged patent and Sun withdrew from the JPO patent challenge.
●
In July 2023, the JPO issued a final decision upholding various claims of the challenged patent and determining that other patent claims were invalid.
●
In August 2023, Sandoz appealed the JPO decision to the Japan IP High Court (High Court).
●
In October 2024, the High Court affirmed the decision by the JPO.
|
F-54
|
●
This matter is now concluded.
|
|
|
Forxiga patent proceedings |
Considered to be a contingent liability |
|
UK |
●
In the UK,
●
Trial is scheduled for March 2025.
|
|
Soliris patent proceedings |
Considered to be a contingent liability |
|
Turkey |
●
In November 2024, Salute HC İlaçları Sanayi ve Ticaret A.Ş (Salute) served an action in the Industrial and Intellectual Property Rights Court in Istanbul, Turkey seeking to invalidate and enjoin enforcement of Alexion’s patent relating to eculizumab.
|
|
Tagrisso patent proceedings |
Considered to be a contingent liability |
|
US |
●
In September 2021, Puma Biotechnology, Inc. (Puma) and Wyeth LLC (Wyeth) filed a patent infringement lawsuit in the US District Court for the District of Delaware (District Court) against AstraZeneca relating to
Tagrisso
.
●
In March 2024, the District Court dismissed Puma.
●
The jury trial, with Wyeth as the plaintiff, took place in May 2024. The jury found Wyeth’s patents infringed and awarded Wyeth
$
●
In proceedings following the jury award, the District Court rejected AstraZeneca’s indefiniteness and equitable defences but granted judgment as a matter of law in favour of AstraZeneca on the grounds that the patents were invalid for lack of written description and enablement.
●
Wyeth has filed an appeal.
|
Legal proceedings brought by AstraZeneca
|
Brilinta patent proceedings |
Considered to be a contingent asset |
|
US |
●
In 2015 and subsequently, in response to Paragraph IV notices from ANDA filers, AstraZeneca filed patent infringement lawsuits in the US District Court for the District of Delaware (District Court). In its complaints, AstraZeneca alleged that a generic version of
Brilinta
, if approved and marketed, would infringe patents that are owned or licensed by AstraZeneca.
●
In 2024, AstraZeneca entered into separate settlements and the District Court entered consent judgments to dismiss each of the corresponding litigations. Additional proceedings are ongoing in the District Court.
●
No trial date has been set.
|
|
Calquence patent proceedings |
Considered to be a contingent asset |
|
US |
●
In February 2022, in response to Paragraph IV notices from multiple ANDA filers, AstraZeneca filed patent infringement lawsuits in the US District Court for the District of Delaware (District Court). In its complaints, AstraZeneca alleged that a generic version of
Calquence
capsules, if approved and marketed, would infringe patents that are owned or licensed by AstraZeneca.
●
In 2024, AstraZeneca entered into settlement agreements with all
●
AstraZeneca received Paragraph IV notices relating to patents listed in the FDA Orange Book with reference to
Calquence
tablets from Cipla USA, Inc. and Cipla Limited (collectively, Cipla) in April 2024 and from MSN Pharmaceuticals Inc. and MSN Laboratories Pvt. Ltd. (collectively, MSN) in November 2024.
●
In response to these Paragraph IV notices, AstraZeneca filed patent infringement lawsuits against Cipla in May 2024 and against MSN in January 2025 in the District Court. In the complaints, AstraZeneca alleges that a generic version of
Calquence
tablets, if approved and marketed, would infringe patents that are owned or licensed by AstraZeneca. No trial date has been scheduled.
|
|
Daliresp patent litigation |
Considered to be a contingent asset |
|
US |
●
In 2015 and subsequently, in response to Paragraph IV notices from ANDA filers, AstraZeneca filed patent infringement lawsuits in the US District Court for the District of New Jersey (District Court) relating to patents listed in the FDA Orange Book with reference to Daliresp.
●
In 2022, AstraZeneca entered into a settlement agreement and the District Court entered a consent judgment to dismiss the corresponding litigation. Additional ANDA challenges are pending.
|
|
Farxiga patent proceedings |
Considered to be a contingent asset |
|
US |
●
In May 2021, AstraZeneca proceeded to trial against ANDA filer Zydus Pharmaceuticals (USA) Inc. (Zydus) in the US District Court for the District of Delaware (District Court). In October 2021, the District Court issued a decision finding the asserted claims of AstraZeneca’s patent as valid and infringed by Zydus’s ANDA product. In August 2022, Zydus appealed the District Court decision. Zydus’s appeal has been dismissed.
●
In December 2023, AstraZeneca initiated ANDA litigation against Sun Pharmaceutical Industries Ltd. and Sun Pharmaceutical Industries, Inc. in the District Court. No trial date has been set.
|
|
Lokelma patent proceedings |
Considered to be a contingent asset |
|
US |
●
In August 2022, in response to Paragraph IV notices, AstraZeneca initiated ANDA litigation against multiple generic filers in the US District Court for the District of Delaware (District Court). AstraZeneca alleged that a generic version of
Lokelma
would infringe patents that are owned or licensed by AstraZeneca.
●
AstraZeneca has entered into separate settlement agreements with
|
F-55
|
●
Additional proceedings with the remaining generic manufacturer are ongoing in the District Court. Trial is scheduled for March 2025.
|
|
|
Lynparza patent proceedings |
Considered to be a contingent asset |
|
US |
●
AstraZeneca received a Paragraph IV notice relating to
Lynparza
patents from Natco Pharma Limited (Natco) in December 2022, Sandoz Inc. (Sandoz) in December 2023, Cipla USA, Inc. and Cipla Limited (collectively, Cipla) in May 2024, and Zydus Pharmaceuticals (USA) Inc. (Zydus) in November 2024. In response to these Paragraph IV notices, AstraZeneca, MSD International Business GmbH, and the University of Sheffield initiated ANDA litigations against Natco, Sandoz, Cipla, and Zydus in the US District Court for the District of New Jersey. In the complaints, AstraZeneca alleged that the defendants’ generic versions of
Lynparza
, if approved and marketed, would infringe AstraZeneca’s patents.
●
No trial date has been scheduled.
|
|
Soliris patent proceedings |
Considered to be a contingent asset |
|
Canada |
●
In May 2023, Alexion initiated patent litigation in Canada alleging that Amgen Pharmaceuticals, Inc.’s (Amgen) biosimilar eculizumab product will infringe Alexion patents.
●
In September 2023, Alexion initiated patent litigations in Canada alleging that Samsung Bioepis Co. Ltd.’s (Samsung) biosimilar eculizumab product will infringe Alexion patents. The filing of the litigation triggered an automatic
stay of the approval of each defendant’s biosimilar eculizumab product.
●
Trial against Amgen is scheduled to begin in January 2025 while trial against Samsung is scheduled to begin in June 2025.
●
In July and August 2023, in Canada, both Amgen and Samsung brought actions challenging the validity of Alexion’s patent relating to the use of eculizumab in treating aHUS. Trial is scheduled for November 2025.
|
|
Soliris patent proceedings |
Matter concluded |
|
US |
●
In January 2024, Alexion initiated patent infringement litigation against Samsung Bioepis Co. Ltd. (Samsung) in the US District Court for the District of Delaware (District Court) alleging that Samsung’s biosimilar eculizumab product, for which Samsung is currently seeking FDA approval, will infringe
●
●
Alexion filed a motion for a preliminary injunction seeking to enjoin Samsung from launching its biosimilar eculizumab product upon FDA approval. The District Court denied Alexion’s motion and Alexion appealed that decision.
●
In August 2024, the parties reached resolution of the matter. All legal proceedings in the US courts have terminated as have the inter partes review proceedings.
|
|
Soliris patent proceedings |
Considered to be a contingent asset |
|
Europe |
●
In March 2024, Alexion filed motions for provisional measures against Amgen Pharmaceuticals Inc (Amgen) and Samsung Bioepis Co. Ltd. (Samsung) and their respective affiliates at the Hamburg Local Division of the Unified Patent Court (UPC) on the basis that Amgen’s and Samsung’s biosimilar eculizumab products infringe an Alexion patent. Alexion appealed and in December 2024 the UPC appellate division denied Alexion’s appeal requesting provisional measures.
●
In parallel, Samsung and Amgen have filed oppositions to the patent at the European Patent Office.
●
In November 2024, Amgen filed a revocation action for the patent at the UPC Central Division in Milan.
|
|
Soliris patent proceedings |
Considered to be a contingent asset |
|
UK |
●
In May 2024, Alexion initiated patent infringement proceedings against Amgen Ltd and Samsung Bioepis UK
Ltd (Samsung UK) in the UK High Court of Justice alleging that their respective biosimilar eculizumab products
infringe an Alexion patent; on the same day, Samsung UK initiated a revocation action for the same patent.
●
Trial has been scheduled for March 2025.
|
|
Tagrisso patent proceedings |
Considered to be a contingent asset |
|
Russia |
●
In Russia, in August 2023, AstraZeneca filed lawsuits in the Arbitration Court of the Moscow Region (Court) against the Ministry of Health of the Russian Federation and Axelpharm LLC (Axelpharm) related to Axelpharm’s improper use of AstraZeneca’s information to obtain authorisation to market a generic version of
Tagrisso
. In December 2023, the Court dismissed the lawsuit against the Ministry of Health of the Russian Federation. The appellate court affirmed the dismissal in March 2024. AstraZeneca filed a further appeal, which was dismissed in July 2024. The lawsuit against Axelpharm was dismissed in September 2024, and AstraZeneca appealed.
●
In November 2023, Axelpharm filed a compulsory licensing action against AstraZeneca in the Court related to a patent that covers
Tagrisso
. The compulsory licensing action remains pending. AstraZeneca has also challenged before the Russian Patent and Trademark Office (PTO) the validity of the Axelpharm patent on which the compulsory licensing action is predicated. In August 2024, the PTO determined that Axelpharm’s patent is invalid and, in November 2024, Axelpharm filed an appeal.
●
In July 2024, AstraZeneca filed a patent infringement lawsuit, which remains pending, and an unfair competition claim with the Federal Anti-Monopoly Service of Russia (FAS) against AxelPharm and others related to the securing of state contracts in Russia for its generic version of Osimertinib.
●
In August 2024, the FAS initiated an unfair competition case against Axelpharm and OncoTarget based on AstraZeneca’s unfair competition claim. In November 2024, the FAS determined that Axelpharm had committed unfair competition and that OncoTarget had not; the FAS ordered Axelpharm to cease sales of its generic osimertinib and pay the Russian government the income it received from its sales of its generic Osimertinib. In December 2024, Axelpharm appealed.
|
F-56
Product liability litigation
Legal proceedings brought against AstraZeneca
|
Farxiga and Xigduo XR |
Considered to be a contingent liability |
|
US |
●
AstraZeneca has been named as a defendant in lawsuits involving plaintiffs claiming physical injury, including Fournier's Gangrene and necrotising fasciitis, from treatment with
Farxiga
and/or
Xigduo XR
. In September 2023, the parties resolved by settlement agreement
|
|
Nexium and Prilosec |
A provision has been taken |
|
US |
●
AstraZeneca has been defending lawsuits brought in federal and state courts involving claims that plaintiffs have been diagnosed with various injuries following treatment with proton pump inhibitors (PPIs), including
Nexium
and
Prilosec
. Most of the lawsuits alleged kidney injury.
●
In addition, AstraZeneca has been defending lawsuits involving allegations of gastric cancer following treatment with PPIs, including
●
In October 2023, AstraZeneca resolved all pending claims in the MDL, as well as all pending claims in Delaware and New Jersey state courts, for
$
●
In December 2024, AstraZeneca resolved the sole remaining case, which had been pending in the District Court.
|
|
Nexium and Losec |
Considered to be a contingent liability |
|
Canada |
●
In Canada, in July and August 2017, AstraZeneca was served with
●
The third lawsuit seeks authorisation to represent individual residents in Canada who allegedly suffered kidney injuries from the use of proton pump inhibitors, including
Nexium
and
Losec
. No trial date has been scheduled.
|
|
Onglyza and Kombiglyze |
Matter concluded |
|
US |
●
In the US, AstraZeneca has been defending various lawsuits in both California state court and in a consolidated federal proceeding alleging heart failure, cardiac injuries, and/or death from treatment with
Onglyza
or
Kombiglyze
. In the California state court proceeding, the trial court granted summary judgment for AstraZeneca, which the California appellate court affirmed. The California Supreme Court has declined further review, and the California matter has concluded.
●
The consolidated federal cases were dismissed in August 2022 by the US District Court for the Eastern District of Kentucky. That dismissal was affirmed by the US Court of Appeals for the Sixth Circuit in February 2024. This matter is concluded.
|
|
Vaxzevria |
Considered to be a contingent liability |
|
UK |
●
AstraZeneca is defending lawsuits in multiple jurisdictions, including the UK, involving multiple claimants alleging injuries following vaccination with AstraZeneca’s COVID-19 vaccine. Most of the lawsuits involve claims of thrombosis with thrombocytopenia syndrome.
●
No trial dates have been scheduled.
|
Commercial litigation
Legal proceedings brought against AstraZeneca
|
340B Antitrust litigation |
Considered to be a contingent liability |
|
US |
●
In September 2021, AstraZeneca was served with a class-action antitrust complaint filed in the US District Court for the Western District of New York (District Court) by Mosaic Health alleging a conspiracy to restrict access to 340B discounts in the diabetes market through contract pharmacies. In September 2022, the District Court granted AstraZeneca’s motion to dismiss the Complaint. In February 2024, the District Court denied Plaintiffs’ request to file an amended complaint and entered an order closing the matter.
●
In March 2024, Plaintiffs filed an appeal.
|
|
Amyndas Trade Secrets Litigation |
Considered to be a contingent liability |
|
US |
●
AstraZeneca has been defending a matter filed by Amyndas Pharmaceuticals Member P.C. and Amyndas Pharmaceuticals, LLC, in the US District Court for the District of Massachusetts alleging trade secret misappropriation and breach of contract claims against Alexion and Zealand Pharma U.S. Inc. related to Amyndas’ C3 inhibitor candidate.
●
No trial date has been set.
|
F-57
|
Anti-Terrorism Act Civil Lawsuit |
Considered to be a contingent liability |
|
US |
●
In the US, in October 2017, AstraZeneca and certain other pharmaceutical and/or medical device companies were named as defendants in a complaint filed in the US District Court for the District of Columbia (District Court) by US nationals (or their estates, survivors, or heirs) who were killed or wounded in Iraq between 2005 and 2013. The plaintiffs allege that the defendants violated the US Anti-Terrorism Act and various state laws by selling pharmaceuticals and medical supplies to the Iraqi Ministry of Health. In July 2020, the District Court granted AstraZeneca’s and the other defendants’ motion to dismiss the lawsuit, which the DC Circuit Court of Appeals (the Appellate Court) reversed in January 2022.
●
In June 2024, the United States Supreme Court issued an order vacating the 2022 decision and granted AstraZeneca’s and the other defendants’ request for a remand to the Appellate Court for reconsideration under new case law.
|
|
Caelum Trade Secrets Litigation |
Matter concluded |
|
US |
●
AstraZeneca has been defending a matter filed by the University of Tennessee Research Foundation in the US District Court for the Eastern District of Tennessee related to CAEL-101.
●
In September 2024, the parties resolved the matter by settlement.
|
|
Definiens |
Considered to be a contingent liability |
|
Germany |
●
In Germany, in July 2020, AstraZeneca received a notice of arbitration filed with the German Institution of Arbitration from the sellers of Definiens AG (the Sellers) regarding the 2014 Share Purchase Agreement (SPA) between AstraZeneca and the Sellers. The Sellers claim that they are owed approximately
$
●
In March 2024, AstraZeneca filed an application with the Bavarian Supreme Court to set aside the arbitration award.
●
A hearing is scheduled for February 2025.
|
|
Employment Litigation |
Considered to be a contingent liability |
|
US |
●
In December 2022, AstraZeneca was served with a lawsuit filed by
●
AstraZeneca is defending against numerous other litigation matters pending in federal and state courts asserting claims of discrimination in connection with AstraZeneca’s vaccine requirement. In November 2024, in a matter pending in the US District Court for the Northern District of Ohio, the court entered summary judgment in favour of the plaintiff.
●
A trial on the issues of damages is scheduled for June 2025.
|
|
Pay Equity Litigation |
Considered to be a contingent liability |
|
US |
●
AstraZeneca is defending a putative class and collective action in the US District Court for the Northern District of Illinois (District Court) brought by
●
In May 2024, the District Court conditionally certified a collective under the federal Equal Pay Act and authorised the sending of notice to potential collective action members. The notice was distributed in June 2024.
|
|
Securities Litigation |
Considered to be a contingent liability |
|
US |
●
In December 2024, a putative securities class action lawsuit was filed in the US District Court for the Central District of California against AstraZeneca PLC and certain officers, on behalf of purchasers of AstraZeneca publicly traded securities between February 2022 and December 2024. The complaint alleges that defendants made materially false and misleading statements in connection with the Company’s business in China.
|
|
Seroquel XR Antitrust Litigation |
Considered to be a contingent liability |
|
US |
●
In 2019, AstraZeneca was named in several related complaints now proceeding in US District Court in Delaware (District Court), including several putative class action lawsuits that were purportedly brought on behalf of classes of direct purchasers or end payors of
Seroquel XR
, that allege AstraZeneca and generic drug manufacturers violated US antitrust laws when settling patent litigation related to
Seroquel XR
.
●
In July 2022, the District Court dismissed claims relating to
●
In September 2024, AstraZeneca reached a settlement agreement with
●
Trial with the remaining class of plaintiffs is currently scheduled for May 2025.
|
F-58
|
Syntimmune Milestone Litigation |
Considered to be a contingent liability |
|
US |
●
In connection with Alexion’s acquisition of Syntimmune, Inc. (Syntimmune) in December 2020, Alexion was served with a lawsuit filed by the stockholders’ representative for Syntimmune in Delaware state court that alleged, among other things, breaches of the 2018 merger agreement (Merger Agreement).
●
The stockholders’ representative alleges that Alexion failed to meet its obligations under the Merger Agreement to use commercially reasonable efforts to achieve the milestones. Alexion also filed a claim for breach of the representations in the Merger Agreement.
●
A trial was held in July 2023.
●
The court issued a partial decision in September 2024, concluding that the first milestone was achieved, and that Alexion had breached its contractual obligation to use commercially reasonable efforts to achieve the milestones. The court has requested additional briefing regarding damages and further proceedings regarding Alexion’s claim for breach.
|
|
University of Sheffield Contract Dispute |
Considered to be a contingent liability |
|
UK |
●
In June 2024, AstraZeneca was served with a lawsuit filed by the University of Sheffield (Sheffield). In its complaint, Sheffield alleges that AstraZeneca made misrepresentations to induce Sheffield to amend a patent license relating to
Lynparza
.
●
AstraZeneca filed its defence in August 2024. No trial date has been scheduled.
|
|
Viela Bio, Inc. Shareholder Litigation |
Considered to be a contingent liability |
|
US |
●
In February 2023, AstraZeneca was served with a lawsuit filed in the Delaware state court against AstraZeneca and certain officers (collectively, Defendants), on behalf of a putative class of Viela Bio, Inc. (Viela) shareholders. The complaint alleged that the Defendants breached their fiduciary duty to Viela shareholders in the course of Viela’s 2021 merger with Horizon Therapeutics, plc.
●
In July 2024, the Court granted with prejudice AstraZeneca’s motion to dismiss.
●
In August 2024, plaintiffs appealed the dismissal.
|
Legal proceedings brought by AstraZeneca
|
PARP Inhibitor Royalty Dispute |
Considered to be a contingent asset |
|
UK |
●
In October 2012, Tesaro, Inc. (now wholly owned by GlaxoSmithKline plc (GSK)) entered into
●
In May 2024, the Supreme Court denied permission to appeal. The case will return to the trial court for further proceedings.
|
Government investigations and proceedings
Legal proceedings brought against AstraZeneca
|
340B Qui Tam |
Considered to be a contingent liability |
|
US |
●
In July 2023, AstraZeneca was served with an unsealed civil lawsuit brought by a qui tam relator on behalf of the United States, several states, and the District of Columbia in the US District Court for the Central District of California (District Court). The complaint alleges that AstraZeneca violated the US False Claims Act and state law analogues. In March 2024, the District Court granted AstraZeneca’s motion to dismiss the First Amended Complaint without leave to amend.
●
In April 2024, the relator filed an appeal.
|
|
Boston US Attorney Investigation |
Considered to be a contingent liability |
|
US |
●
In June 2024, AstraZeneca was served with a subpoena issued by the US Attorney’s Office in Boston, seeking documents and information relating to payments by AstraZeneca to healthcare providers.
●
AstraZeneca is cooperating with this enquiry.
|
|
Brazilian Tax Assessment Matter |
Considered to be a contingent liability |
|
Brazil |
●
In connection with an ongoing matter, in August 2019, the Brazilian Federal Revenue Service provided a Notice of Tax and Description of the Facts (the Tax Assessment) to
●
Alexion prevailed in the first level of administrative appeals in the Brazilian federal administrative proceeding system based on a deficiency in the Brazil Tax Assessment. The decision was subject to an automatic appeal to the second level of the administrative courts.
●
In March 2023, the second level of the administrative courts issued a decision to remand the matter to the first level of administrative courts for a determination on the merits.
|
F-59
|
Texas Qui Tam |
Considered to be a contingent liability |
|
US |
●
In December 2022, AstraZeneca was served with an unsealed civil lawsuit brought by qui tam relators on behalf of the State of Texas in Texas state court, which alleges that AstraZeneca engaged in unlawful marketing practices.
●
Trial is scheduled for October 2025.
|
|
Turkish Ministry of Health Matter |
Matter concluded |
|
Turkey |
●
In Turkey, in July 2020, the Turkish Ministry of Health (Ministry of Health) initiated an investigation regarding payments to healthcare providers by Alexion and former employees and consultants. The investigation arose from Alexion’s disclosure of a
$
●
In September 2021, the Ministry of Health completed its draft investigation report and referred the matter to the Ankara Public Prosecutor’s Office with a recommendation for further proceedings against certain former employees. In June 2024, the Ankara Public Prosecutor’s Office closed its investigation without further action. This matter is now concluded.
|
|
US Congressional Inquiry |
Matter concluded |
|
US |
●
In January 2024, AstraZeneca received a letter from the US Senate Committee on Health, Education, Labor and Pensions (HELP Committee) seeking information related to AstraZeneca's inhaled Respiratory products.
●
AstraZeneca cooperated with this inquiry and this matter is now concluded.
|
|
Vermont US Attorney Investigation |
Considered to be a contingent liability |
|
US |
●
In April 2020, AstraZeneca received a Civil Investigative Demand from the US Attorney’s Office in Vermont and the Department of Justice, Civil Division, seeking documents and information relating to AstraZeneca’s relationships with electronic health-record vendors.
●
AstraZeneca continues to cooperate with this enquiry.
|
|
Shenzhen City Customs Office |
Considered to be a contingent liability |
|
China |
●
In relation to the illegal drug importation allegations, in January 2025, AstraZeneca received a Notice of Transfer to the Prosecutor and an Appraisal Opinion from the Shenzhen City Customs Office regarding suspected unpaid importation taxes amounting to
$
●
To the best of AstraZeneca’s knowledge, the importation taxes referred to in the Appraisal Opinion relate to
Imfinzi
and
Imjudo
.
●
A fine of between
|
Legal proceedings brought by AstraZeneca
|
340B State Litigation |
Considered to be a contingent asset |
|
US |
●
AstraZeneca has filed lawsuits against Arkansas, Kansas, Louisiana, Maryland, Minnesota, Mississippi, Missouri, and West Virginia challenging the constitutionality of each state’s 340B statute.
●
In the Arkansas matter, trial is scheduled for April 2025. In the Arkansas administrative proceeding, the state has moved for a preliminary injunction to enjoin AstraZeneca’s 340B policy in Arkansas.
●
In the Kansas matter, after obtaining a stipulation from the state that AstraZeneca’s policy does not violate the Kansas 340B statute, AstraZeneca agreed to dismiss its complaint.
●
In the Louisiana matter, the Court granted the state’s motion for summary judgment. AstraZeneca has filed an appeal.
●
In the Maryland, Minnesota, and Missouri matters, the state has moved to dismiss AstraZeneca’s complaint.
●
In the Maryland and Mississippi matters, the Court has rejected AstraZeneca’s preliminary injunction motion.
●
The West Virginia matter remains in its preliminary stages.
|
|
Inflation Reduction Act Litigation |
Considered to be a contingent asset |
|
US |
●
In August 2023, AstraZeneca filed a lawsuit in the US District Court for the District of Delaware (District Court) against the US Department of Health and Human Services (HHS) challenging aspects of the drug price negotiation provisions of the Inflation Reduction Act and the implementing guidance and regulations. In March 2024, the District Court granted HHS’ motions and dismissed AstraZeneca’s lawsuit.
●
AstraZeneca has appealed the District Court’s decision.
|
Other
Additional government inquiries
As is true for most, if not all, major prescription pharmaceutical companies, AstraZeneca is currently involved in multiple inquiries into drug marketing and pricing practices. In addition to the investigations described above, various law enforcement offices have, from time to time, requested information from the Group. There have been no material developments in those matters.
F-60
Tax
AstraZeneca considers whether it is probable that a taxation authority will accept an uncertain tax treatment. Where it is concluded that it is not probable the taxation authority will accept an uncertain tax treatment, a tax liability is recognised based on either the most likely amount method or the expected value method depending on which method management expects to better predict the resolution of the uncertainty. Tax liabilities for uncertain tax treatments can be built up over a long period of time but the resolution of the uncertain tax treatments usually occurs at a point in time. Given the inherent uncertainties in assessing the outcomes (which can sometimes be binary), the probability and amount of any tax liability occurring are difficult to ascertain which may see adjustments to the liabilities recognised for uncertain tax treatments in future periods that could have a material positive or negative effect on our results. Details of the movements in relation to material uncertain tax treatments are discussed below.
AstraZeneca faces a number of audits and reviews in jurisdictions around the world and, in some cases, is in dispute with the tax authorities. The issues under discussion are often complex and can require many years to resolve. Tax liabilities recognised for uncertain tax treatments require management to make key judgements with respect to the outcome of current and potential future tax audits, and actual results could vary from these estimates. Management does not believe a significant risk exists of material change to uncertain tax positions in the next 12 months.
The total net tax liability recognised in the Group Financial Statements in respect of uncertain tax positions is $
Transfer pricing
The net tax liability included in the Group Financial Statements in relation to management’s current assessment of tax risks in relation to worldwide transfer pricing exposures is $
The liability includes uncertain tax treatments which are estimated using the expected value method and depend on AstraZeneca’s assessment of the likelihood of the approach taken by the tax authorities. These matters can be complex and judgemental and could change in the future to reflect progress in tax authority reviews, the extent that any tax authority challenge is concluded including via negotiation between governments under competent authority procedures in relevant double tax treaties which can take many years to resolve, or matters lapse including following expiry of the relevant statutes of limitation. Depending upon progress in these matters, we could experience adjustments to the liabilities recognised in respect of uncertain tax treatments in future periods. Whilst it is impracticable to specify the possible effects of such changes at this stage, it is reasonably possible that an adjustment to the carrying amounts of tax assets and liabilities could be required within the next financial year.
For transfer pricing matters, including items under tax audit, AstraZeneca estimates the potential for additional tax liabilities above the amount provided where the possibility of the additional liabilities falling due is more than remote, to be up to $
Management believes that it is unlikely that these additional liabilities will arise. It is possible that some of these contingencies may change in the future to reflect progress in tax authority reviews, to the extent that any tax authority challenge is concluded or matters lapse including following expiry of the relevant statutes of limitation resulting in a reduction in the tax charge in future periods. Management continues to believe that AstraZeneca’s positions on all its transfer pricing positions, audits and disputes are robust, and that AstraZeneca has recognised appropriate tax balances, including consideration of whether corresponding relief will be available under Mutual Agreement procedures or unilaterally.
Other uncertain tax treatments
Included in the net tax liability is $
For these other tax liabilities in respect of uncertain tax treatments, AstraZeneca estimates the potential for additional liabilities above the amount provided where the possibility of the additional liabilities falling due is more than remote, to be up to $
Timing of cash flows and interest
The Group is currently under audit in several countries and the timing of any resolution of these audits is uncertain.
It is anticipated that tax payments may be required in relation to a number of significant disputes which may be resolved over the next one to two years. AstraZeneca considers the tax liabilities set out above to appropriately reflect the expected value of any final settlement. Some of the items discussed above are not currently within the scope of tax authority audits and may take longer to resolve.
Included within other payables is a net amount of interest arising on tax contingencies of $
F-61
31 Statutory and other information
|
|
|
2024 |
|
2023 |
|
2022 |
|
|
|
|
$m |
|
$m |
|
$m |
|
|
Fees payable to PricewaterhouseCoopers LLP and its associates: |
|
|
|
|
|
|
|
|
Group audit fee |
|
|
|
|
|
|
|
|
Fees payable to PricewaterhouseCoopers LLP and its associates for other services: |
|
|
|
|
|
|
|
|
The audit of subsidiaries pursuant to legislation |
|
|
|
|
|
|
|
|
Attestation under s404 of Sarbanes-Oxley Act 2002 |
|
|
|
|
|
|
|
|
Audit-related assurance services |
|
|
|
|
|
|
|
|
Other assurance services |
|
|
|
|
|
|
|
|
Fees payable to PricewaterhouseCoopers Associates in respect of the Group’s pension schemes: |
|
|
|
|
|
|
|
|
The audit of subsidiaries’ pension schemes |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fees payable in the year of $
Related party transactions
The Group had no material related party transactions which might reasonably be expected to influence decisions made by the users of these Financial Statements.
Key management personnel compensation
Key management personnel are defined for the purpose of disclosure under IAS 24 ‘Related Party Disclosures’ as the members of the Board and the members of the SET.
|
|
|
2024 |
|
2023 |
|
2022 |
|
|
|
|
$’000 |
|
$’000 |
|
$’000 |
|
|
Short-term employee benefits |
|
|
|
|
|
|
|
|
Post-employment benefits |
|
|
|
|
|
|
|
|
Share-based payments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total remuneration is included within employee costs (see Note 29).
32 Subsequent events
There were no material subsequent events.
F-62
Group Subsidiaries and Holdings
In accordance with section 409 of the Companies Act 2006, a full list of subsidiaries, partnerships, associates, joint ventures and joint arrangements, the place of incorporation, registered office address, and the effective percentage of equity owned as at 31 December 2024 are disclosed below. Unless otherwise stated, the share capital disclosed comprises ordinary shares which are indirectly held by AstraZeneca PLC.
Unless otherwise stated, the accounting year ends of subsidiaries are 31 December. The Group Financial Statements consolidate the Financial Statements of the Company and its subsidiaries at 31 December 2024.
|
At 31 December 2024 |
|
Group Interest |
|
|
Wholly owned subsidiaries |
|
|
|
|
|
|
|
|
|
Algeria |
|
|
|
|
AAPM SARL |
|
|
% |
|
20, Zone Macro-Economique, Hydra, Dar El Medina, Algiers, Algeria |
|
|
|
|
|
|
|
|
|
Argentina |
|
|
|
|
AstraZeneca S.A. |
|
|
% |
|
Olga Cossettini 363, 3° floor, Buenos Aires, Argentina |
|
|
|
|
Alexion Pharma Argentina SRL |
|
|
% |
|
Avenida Leandro N. Alem 592 Piso 6, Buenos Aires, Argentina |
|
|
|
|
|
|
|
|
|
Australia |
|
|
|
|
AstraZeneca Holdings Pty Limited |
|
|
% |
|
AstraZeneca Pty Limited |
|
|
% |
|
Alexion Pharmaceuticals Australasia Pty Ltd |
|
|
% |
|
66 Talavera Road, Macquarie Park, NSW 2113, Australia |
|
|
|
|
LogicBio Australia Pty Limited |
|
|
% |
|
Level 40, 2-26 Park Street, Sydney, NSW 2000, Australia |
|
|
|
|
|
|
|
|
|
Austria |
|
|
|
|
AstraZeneca Österreich GmbH |
|
|
% |
|
Alexion Pharma Austria GmbH |
|
|
% |
|
Rechte Wienzeile 223 1120 Wien, Austria |
|
|
|
|
Portola Österreich GmbH (in liquidation) |
|
|
% |
|
Mooslackengasse 17, 1190 Wien, Austria |
|
|
|
|
|
|
|
|
|
Belgium |
|
|
|
|
AstraZeneca S.A. / N.V. |
|
|
% |
|
Alfons Gossetlaan 40 bus 201 at 1702 Groot-Bijgaarden, Belgium |
|
|
|
|
Alexion Pharma Belgium Sprl |
|
|
% |
|
Alexion Services Europe Sprl |
|
|
% |
|
Rue des Deux Eglises 29-33, 1000 Brussels, Belgium |
|
|
|
|
|
|
|
|
|
Bermuda |
|
|
|
|
Alexion Bermuda Holding ULC |
|
|
% |
|
Alexion Bermuda Limited |
|
|
% |
|
Alexion Bermuda Partners LP |
|
|
% |
|
Victoria Place, 5th Floor, 31 Victoria Street, Hamilton, HM 10, Bermuda |
|
|
|
|
|
|
|
|
|
Brazil |
|
|
|
|
AstraZeneca do Brasil Limitada |
|
|
% |
|
Rod. Raposo Tavares, KM 26, 9, Cotia, Brazil |
|
|
|
|
Alexion Farmacêutica América Latina Serviços de Administração de Vendas Ltda. |
|
|
% |
|
Alexion Serviços e Farmacêutica do Brasil Ltda. |
|
|
% |
|
Av. Dr Chucri Zaidan, 1240, 15° andar, CEP 04711-130, Ed. Morumbi Corporate – Golden Tower Vila São Francisco, São Paulo, Brazil |
|
|
|
|
|
|
|
|
|
British Virgin Islands |
|
|
|
|
Gracell Biotechnologies Holdings Limited |
|
|
% |
|
Office of Sertus Incorporations (BVI) Limited, Sertus Chambers, P.O. Box 905, Quastisky Building, Road Town, Tortola, British Virgin Islands |
|
|
|
|
|
|
|
|
|
Bulgaria |
|
|
|
|
AstraZeneca Bulgaria EOOD |
|
|
% |
|
51 Cherni Vrah Bld., Business Garden Office X, floor 10, Lozenets district, 1407 Sofia, Bulgaria |
|
|
|
|
|
|
|
|
|
Canada |
|
|
|
|
AstraZeneca Canada Inc. 1 |
|
|
% |
|
Evinova Canada Inc. |
|
|
% |
|
Suite 5000, 1004 Middlegate Road, Mississauga, ON, L4Y 1M4, Canada |
|
|
|
|
Alexion Pharma Canada Corporation |
|
|
% |
|
Suite 1300, 1969 Upper Water St, Halifax, NS, B3J 3R7, Canada |
|
|
|
|
Fusion Pharmaceuticals Inc. |
|
|
% |
|
270 Longwood Road South, Hamilton, ON, L8P 0A6, Canada |
|
|
|
|
|
|
|
|
|
Cayman Islands |
|
|
|
|
AZ Reinsurance Limited |
|
|
% |
|
18 Forum Lane, 2nd Floor, Camana Bay, Grand Cayman, P.O. Box 69, Cayman Islands |
|
|
|
|
Gracell Biotechnologies Inc. |
|
|
% |
|
P.O. Box 309, Ugland House, Grand Cayman, KY1-1104, Cayman Islands |
|
|
|
|
|
|
|
|
|
Chile |
|
|
|
|
AstraZeneca S.A. |
|
|
% |
|
AstraZeneca Farmaceutica Chile Limitada |
|
|
% |
|
Av. Isidora Goyenechea 3477, 2nd Floor, Las Condes, Santiago, Chile |
|
|
|
|
|
|
|
|
|
China |
|
|
|
|
Alexion Pharmaceuticals (Shanghai) Company Limited |
|
|
% |
|
Room 1703, Level 17, No. 88 Xizang North Road, Jing’an District, Shanghai, China |
|
|
|
|
AstraZeneca Global R&D (China) Co., Ltd. |
|
|
% |
|
16F, 88 Xizang North Road, Jing’an District, Shanghai, China |
|
|
|
|
AstraZeneca Investment (China) Co., Ltd. |
|
|
% |
|
199 Liangjing Road, Pilot Free Trade Zone, Shanghai, China |
|
|
|
|
AstraZeneca Investment Consulting (Wuxi) Co., Ltd. |
|
|
% |
|
Room 808, 8F, Building 99-2 Linghu Avenue, Xinwu District, Wuxi, Jiangsu, China |
|
|
|
|
AstraZeneca Pharmaceutical Co., Ltd. |
|
|
% |
|
No. 2, Huangshan Road, Wuxi, Jiangsu Province, China |
|
|
|
|
AstraZeneca Pharmaceutical (Beijing) Co., Ltd. |
|
|
% |
|
1F, Building No. 4, No. 8 Courtyard, No. 1 Kegu Street, Beijing Economic-Technological Development Area, Beijing, China |
|
|
|
|
AstraZeneca Pharmaceutical (Chengdu) Co., Ltd. |
|
|
% |
|
10th Floor, Building 11 (Building E11), No. 366, Hemin Street, Chengdu High-tech Zone, China (Sichuan) Pilot Free Trade Zone, China |
|
|
|
|
AstraZeneca Pharmaceutical (Guangzhou) Co., Ltd. |
|
|
% |
|
Room 406-178, No. 1, Yichuang Street, (China-Singapore Guangzhou Knowledge City) Huangpu District, Guangzhou City, China |
|
|
|
|
AstraZeneca Pharmaceutical (Hangzhou) Co., Ltd. |
|
|
% |
|
12F & 14F, Building 1, Shuli Plaza, 758 Fei Jia Tang Road, Gongshu District, Hangzhou, Zhejiang Province, China |
|
|
|
|
AstraZeneca Pharmaceutical Manufacturing (Qingdao) Co., Ltd. |
|
|
% |
|
Room 806, Building 2, 82 Juxianqiao Road, High-tech Zone, Qingdao, Shandong Province, China |
|
|
|
|
AstraZeneca Pharmaceutical (Qingdao) Co., Ltd. |
|
|
% |
|
Floor 8, Building 2, 82 Juxianqiao Road, High-tech Zone, Qingdao, Shandong Province, China |
|
|
|
|
AstraZeneca Pharmaceutical (Shanghai) Co., Ltd. |
|
|
% |
|
B1F, 8F & 9F, 88 Xizang North Road, Jing’an District, Shanghai, China |
|
|
|
|
AstraZeneca Pharmaceuticals (China) Co., Ltd. |
|
|
% |
|
88 Yaocheng Avenue, Jiangsu Province, Taizhou, China |
|
|
|
|
AstraZeneca (Wuxi) Trading Co., Ltd. |
|
|
% |
|
Building E (Building No. 5), Huirong Commercial Plaza, East Jinghui Road, Xinwu District, Wuxi, China |
|
|
|
|
Gracell Biomedicine (Shanghai) Co., Ltd. 2 |
|
|
% |
|
Shanghai Evinova Medical Technology Co., Ltd. 2 |
|
|
% |
|
Building C, No. 888, Huanhu 2nd Road West, Lingang New District, Shanghai, Pilot Free Trade Zone, China |
|
|
|
|
Gracell Bioscience (Shanghai) Co., Ltd. |
|
|
% |
|
1st-4th Floor, Building 1, No. 418 Guilin Road, Xuhui District, Shanghai 200233, China |
|
|
|
|
Hainan Gracell Biomedicine Co., Ltd. (in liquidation) 2 |
|
|
% |
|
A132-81, 4th Floor, Joint Inspection Building, Haikou Comprehensive Bonded Zone, Haikou Free Trade Zone, Hainan Province, China |
|
|
|
|
Suzhou Gracell Bioscience Co., Ltd. |
|
|
% |
|
Unit E547, 5th Floor, Lecheng Plaza, Phase II, Biobay Industrial Park, 218 Sangtian Street, Suzhou Industrial Park, Suzhou Area, Jiangsu, Pilot Free Trade Zone 215123, China |
|
|
|
|
|
|
|
|
|
Colombia |
|
|
|
|
AstraZeneca Colombia S.A.S. |
|
|
% |
|
Av Carrera 9 No. 101-67 Office 601, Bogotá, 110231, Colombia |
|
|
|
|
Alexion Pharma Colombia S.A.S. (in liquidation) |
|
|
% |
|
Carrera 9 No. 115 - 06 /30 Edificio Tierra Firme Oficina 2904 Bogot á D.C., Colombia |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costa Rica |
|
|
|
|
AstraZeneca CAMCAR Costa Rica, S.A. |
|
|
% |
|
San José, Escazú, Roble Corporate Center, 5to piso, Costa Rica |
|
|
|
|
|
|
|
|
|
Croatia |
|
|
|
|
AstraZeneca d.o.o. |
|
|
% |
|
Vjekoslava Heinzela 70, 10 000 Zagreb, Croatia |
|
|
|
|
|
|
|
|
|
Czech Republic |
|
|
|
|
AstraZeneca Czech Republic, s.r.o. |
|
|
% |
|
Alexion Pharma Czech s.r.o. |
|
|
% |
|
U Trezorky 921/2, 158 00 Prague 5, Czech Republic |
|
|
|
|
|
|
|
|
F-63
|
Denmark |
|
|
|
|
AstraZeneca A/S |
|
|
% |
|
Johanne Møllers Passage 1, Dk-1799, Copenhagen V, Denmark |
|
|
|
|
|
|
|
|
|
Egypt |
|
|
|
|
AstraZeneca Egypt for Pharmaceutical Industries SAE |
|
|
% |
|
6th of October City, 6th Industrial Zone, Plot 2, Giza, Egypt |
|
|
|
|
AstraZeneca Egypt LLC |
|
|
% |
|
47 St. 270 New Maadi, Cairo, Egypt |
|
|
|
|
Drimex LLC |
|
|
% |
|
Plot 133, Banks’ District, 5th Settlement, New Cairo, Cairo, Egypt |
|
|
|
|
|
|
|
|
|
Estonia |
|
|
|
|
AstraZeneca Eesti OÜ |
|
|
% |
|
Harju maakond, Tallinn, Lasnamäe linnaosa, Valukoja tn 8/1, 11415, Estonia |
|
|
|
|
|
|
|
|
|
Finland |
|
|
|
|
AstraZeneca Oy. |
|
|
% |
|
Keilaranta 18, 02150 Espoo, Finland |
|
|
|
|
|
|
|
|
|
France |
|
|
|
|
Amolyt Pharma SAS 3 |
|
|
% |
|
15 Chemin du Saquin, Espace Européen, 69130 Écully, France |
|
|
|
|
AstraZeneca SAS |
|
|
% |
|
Tour Carpe Diem-31, Place des Corolles, 92400 Courbevoie, France |
|
|
|
|
AstraZeneca Reims Production SAS |
|
|
% |
|
Chemin de Vrilly Parc, Industriel de la Pompelle, 51100 Reims, France |
|
|
|
|
AstraZeneca Dunkerque Production SCS |
|
|
% |
|
224 Avenue de la Dordogne, 59640 Dunkerque, France |
|
|
|
|
Alexion Europe SAS |
|
|
% |
|
Alexion Pharma France SAS |
|
|
% |
|
103-105 Rue Anatole France, 92300 Levallois-Perret, France |
|
|
|
|
|
|
|
|
|
Germany |
|
|
|
|
AstraZeneca GmbH |
|
|
% |
|
AstraZeneca Holding GmbH 4 |
|
|
% |
|
Sofotec GmbH 5 |
|
|
% |
|
Friesenweg 26, 22763, Hamburg, Germany |
|
|
|
|
AstraZeneca Computational Pathology GmbH 3 |
|
|
% |
|
Bernhard-Wicki-Straße 5, 80636, Munich, Germany |
|
|
|
|
Alexion Pharma Germany GmbH |
|
|
% |
|
Landsberger Straße 300, 80687, Munich, Germany |
|
|
|
|
|
|
|
|
|
Greece |
|
|
|
|
AstraZeneca S.A. |
|
|
% |
|
Agisilaou 6-8 Marousi, Athens, Greece |
|
|
|
|
|
|
|
|
|
Hong Kong |
|
|
|
|
AstraZeneca HK Holdings Company Limited |
|
|
% |
|
AstraZeneca Hong Kong Limited |
|
|
% |
|
Unit 1 – 3, 11/F., China Taiping Finance Centre, 18 King Wah Road, North Point, Hong Kong |
|
|
|
|
Gracell Biotechnologies (HK) Limited |
|
|
% |
|
C&F Secretarial Services Limited, Unit 3A, 12/F, Kaiser Centre, No. 18 Centre Street, Sai Ying Pun, Hong Kong |
|
|
|
|
|
|
|
|
|
Hungary |
|
|
|
|
AstraZeneca Kft |
|
|
% |
|
1st floor, 4 building B, Alíz str., Budapest, 1117, Hungary |
|
|
|
|
|
|
|
|
|
India |
|
|
|
|
AstraZeneca India Private Limited 6 |
|
|
% |
|
Block A, Neville Tower, 11th Floor, Ramanujan IT SEZ, Taramani, Chennai, Tamil Nadu, PIN 600113, India |
|
|
|
|
Alexion Business Services Private Limited |
|
|
% |
|
9th Floor, Platina, G Block Plot No. C-59, Bandra-Kurla Complex Bandra (East), Mumbai 400051, India |
|
|
|
|
|
|
|
|
|
Iran |
|
|
|
|
AstraZeneca Pars Company |
|
|
% |
|
Suite 1, 1st Floor No. 39, Alvand Ave., Argantin Sq., Tehran 1516673114, Iran |
|
|
|
|
|
|
|
|
|
Ireland |
|
|
|
|
AstraZeneca Pharmaceuticals (Ireland) Designated Activity Company |
|
|
% |
|
4th Floor, South Bank House, Barrow Street, Dublin 4, Republic of Ireland |
|
|
|
|
Alexion Pharma Holding Limited |
|
|
% |
|
Alexion Pharma International Operations Limited |
|
|
% |
|
Alexion Pharma Development Limited |
|
|
% |
|
AstraZeneca Ireland Limited |
|
|
% |
|
College Business & Technology Park, Blanchardstown Road North, Dublin 15, Republic of Ireland |
|
|
|
|
|
|
|
|
|
Israel |
|
|
|
|
AstraZeneca (Israel) Ltd |
|
|
% |
|
Atirei Yeda 1, Building O-Tech 2, POB 8044, Kfar Saba, 4464301, Israel |
|
|
|
|
Alexion Pharma Israel Ltd |
|
|
% |
|
16 Derech Aba Hille St., Ramat Gan 5250608, Israel |
|
|
|
|
|
|
|
|
|
Italy |
|
|
|
|
Simesa SpA |
|
|
% |
|
AstraZeneca SpA |
|
|
% |
|
Alexion Pharma Italy Srl |
|
|
% |
|
Viale Decumano 39, 20157 Milan, Italy |
|
|
|
|
|
|
|
|
|
Japan |
|
|
|
|
AstraZeneca K.K. |
|
|
% |
|
3-1, Ofuka-cho, Kita-ku, Osaka, 530-0011, Japan |
|
|
|
|
Alexion Pharma GK |
|
|
% |
|
Tamachi Station Tower N 3-1-1, Shibaura, Minato-ku Tokyo 108-0023, Japan |
|
|
|
|
|
|
|
|
|
Kazakhstan |
|
|
|
|
AstraZeneca Kazakhstan Limited Liability Partnership |
|
|
% |
|
Office 101, 77 Kunayev Street, Almaty 050000, Kazakhstan |
|
|
|
|
|
|
|
|
|
Kenya |
|
|
|
|
AstraZeneca Pharmaceuticals Limited |
|
|
% |
|
L.R. No.1/1327, Avenue 5, 1st Floor, Rose Avenue, Nairobi, Kenya |
|
|
|
|
|
|
|
|
|
Latvia |
|
|
|
|
AstraZeneca Latvija SIA |
|
|
% |
|
Skanstes iela 50, Riga, LV-1013, Latvia |
|
|
|
|
|
|
|
|
|
Lithuania |
|
|
|
|
AstraZeneca Lietuva UAB |
|
|
% |
|
Spaudos g., Vilnius, LT-05132, Lithuania |
|
|
|
|
|
|
|
|
|
Luxembourg |
|
|
|
|
AstraZeneca Luxembourg S.A. |
|
|
% |
|
Rue Nicolas Bové 2A – L-1253, Luxembourg |
|
|
|
|
|
|
|
|
|
Malaysia |
|
|
|
|
AstraZeneca Asia-Pacific Business Services Sdn Bhd |
|
|
% |
|
12th Floor, Menara Symphony, No. 5 Jalan Prof, Khoo Kay Kim, Seksyen 13, 46200 Petaling Jaya, Selangor Darul Ehsan, Malaysia |
|
|
|
|
AstraZeneca Sdn Bhd |
|
|
% |
|
Nucleus Tower, Level 11 & 12, No. 10 Jalan PJU 7/6, Mutiara Damansara, 47800 Petaling Jaya, Selangor Darul Ehsan, Malaysia |
|
|
|
|
|
|
|
|
|
Mexico |
|
|
|
|
AstraZeneca Health Care Division, S.A. de C.V. |
|
|
% |
|
AstraZeneca, S.A. de C.V. |
|
|
% |
|
Av. Periferico Sur 4305 interior 5, Colonia Jardines en la Montaña, Mexico City, Tlalpan Distrito Federal, CP 14210, Mexico |
|
|
|
|
Alexion Pharma Mexico S. de R.L. de C.V. |
|
|
% |
|
Paseo de los Tamarindos 90, Torre 1 piso 6 - A Col., Bosques de la Lomas, CP 05120 D.F, Mexico |
|
|
|
|
|
|
|
|
|
Morocco |
|
|
|
|
AstraZeneca Maroc SARLAU |
|
|
% |
|
CFC (Casablanca Finance City), Le Continental Business Center, Bâtiment C, 7ème étage, Quartier Hay Hassani, Casablanca, Morocco |
|
|
|
|
|
|
|
|
|
The Netherlands |
|
|
|
|
Alexion Holding B.V. |
|
|
% |
|
Alexion Pharma Foreign Holdings, B.V. |
|
|
% |
|
Alexion Pharma Netherlands B.V. |
|
|
% |
|
AstraZeneca B.V. |
|
|
% |
|
AstraZeneca Continent B.V. |
|
|
% |
|
AstraZeneca Gamma B.V. |
|
|
% |
|
AstraZeneca Holdings B.V. |
|
|
% |
|
AstraZeneca Jota B.V. |
|
|
% |
|
AstraZeneca Rho B.V. |
|
|
% |
|
AstraZeneca Sigma B.V. |
|
|
% |
|
AstraZeneca Treasury B.V. |
|
|
% |
|
AstraZeneca Zeta B.V. |
|
|
% |
|
Prinses Beatrixlaan 582, 2595 BM, The Hague, The Netherlands |
|
|
|
|
AstraZeneca Nijmegen B.V. |
|
|
% |
|
Lagelandseweg 78, 6545 CG Nijmegen, The Netherlands |
|
|
|
|
Acerta Pharma B.V. |
|
|
% |
|
Aspire Therapeutics B.V. |
|
|
% |
|
Kloosterstraat 9, 5349 AB, Oss, The Netherlands |
|
|
|
|
Portola Netherlands B.V. |
|
|
% |
|
Basisweg 10, 1043 AP, Amsterdam, The Netherlands |
|
|
|
|
Neogene Therapeutics B.V. |
|
|
% |
|
Science Park 106, 1098 XG Amsterdam, The Netherlands |
|
|
|
|
At 31 December 2024 |
|
Group Interest |
|
|
New Zealand |
|
|
|
|
AstraZeneca Limited |
|
|
% |
|
Pharmacy Retailing (NZ) Limited t/a Healthcare Logistics, 58 Richard Pearse Drive, Mangere, Auckland, 1142, New Zealand |
|
|
|
|
|
|
|
|
|
Nigeria |
|
|
|
|
AstraZeneca Nigeria Limited |
|
|
% |
|
11A, Alfred Olaiya Street, Awuse Estate, Off Salvation Street, Opebi, Ikeja, Lagos, Nigeria |
|
|
|
|
|
|
|
|
|
Norway |
|
|
|
|
AstraZeneca AS |
|
|
% |
|
Karvesvingen 7, 0579 Oslo, Norway |
|
|
|
|
|
|
|
|
|
Pakistan |
|
|
|
|
AstraZeneca Pharmaceuticals Pakistan (Private) Limited 7 |
|
|
% |
|
Office No 1, 2nd Floor, Sasi Arcade, Block 7, Main Clifton Road, Karachi, Pakistan |
|
|
|
|
|
|
|
|
|
Panama |
|
|
|
|
AstraZeneca CAMCAR, S.A. |
|
|
% |
|
Bodega #1, Parque Logistico MIT, Carretera Hacia Coco Solo, Colon, Panama |
|
|
|
|
|
|
|
|
|
Peru |
|
|
|
|
AstraZeneca Peru S.A. |
|
|
% |
|
Calle Las Orquídeas N° 675, Int. 802, Edificio Pacific Tower, San Isidro, Lima, Peru |
|
|
|
|
|
|
|
|
|
Philippines |
|
|
|
|
AstraZeneca Pharmaceuticals (Phils.) Inc. |
|
|
% |
|
16th Floor, Inoza Tower, 40th Street, Bonifacio Global City, Taguig 1634, Philippines |
|
|
|
F-64
|
|
|
|
|
|
Poland |
|
|
|
|
AstraZeneca Pharma Poland Sp.z.o.o. |
|
|
% |
|
Alexion Pharma Poland Sp.z.o.o. |
|
|
% |
|
Postepu 14, 02-676, Warszawa, Poland |
|
|
|
|
Evinova Poland sp. z o.o |
|
|
% |
|
Towarowa 28, 00-839 Warszawa, Poland |
|
|
|
|
|
|
|
|
|
Portugal |
|
|
|
|
Astra Alpha Produtos Farmacêuticos Lda |
|
|
% |
|
AstraZeneca Produtos Farmacêuticos Lda |
|
|
% |
|
Novastra Promoção e Comércio Farmacêutico Lda |
|
|
% |
|
Novastuart Produtos Farmacêuticos Lda |
|
|
% |
|
Stuart-Produtos Farmacêuticos Lda |
|
|
% |
|
Zeneca Epsilon – Produtos Farmacêuticos Lda |
|
|
% |
|
Zenecapharma Produtos Farmacêuticos, Unipessoal Lda |
|
|
% |
|
Rua Humberto Madeira, No 7, Queluz de Baixo, 2730-097, Barcarena, Portugal |
|
|
|
|
|
|
|
|
|
Puerto Rico |
|
|
|
|
IPR Pharmaceuticals, Inc. |
|
|
% |
|
Road 188, San Isidro Industrial Park, Canóvanas, 00729, Puerto Rico |
|
|
|
|
|
|
|
|
|
Romania |
|
|
|
|
AstraZeneca Pharma S.R.L. |
|
|
% |
|
Bucharest, 1A Tipografilor Street, MUSE Offices, 2nd and 3rd Floor, District 1, 013714, Romania |
|
|
|
|
|
|
|
|
|
Russia |
|
|
|
|
AstraZeneca Industries LLC |
|
|
% |
|
81 Vostochniy Lane, Dobrino Village, Borovskiy District, Kaluga Region, 249006, Russian Federation |
|
|
|
|
AstraZeneca Pharmaceuticals LLC |
|
|
% |
|
1 Krasnogvardeyskiy Lane 21, Bld.1, Floors 20-30, Moscow, 123112, Russian Federation |
|
|
|
|
Alexion Pharma LLC |
|
|
% |
|
12 Presnenskaya Embankment, Premises 1/36, Moscow, 123112, Russian Federation |
|
|
|
|
|
|
|
|
|
Saudi Arabia |
|
|
|
|
AstraZeneca Continent – Regional Headquarter |
|
|
% |
|
Al-Nakhlah Tower, Floor 13th Ath Thumamah Road, Al Sahafa District, P.O. Box 42150, Riyadh, Kingdom of Saudi Arabia |
|
|
|
|
AstraZeneca Trading Company |
|
|
% |
|
8125 Prince Sultan, 2086 Ar Rawdah District, 23435, Jeddah, Kingdom of Saudi Arabia |
|
|
|
|
|
|
|
|
|
Singapore |
|
|
|
|
AstraZeneca Pharmaceuticals Singapore Pte. Limited |
|
|
% |
|
AstraZeneca Singapore Pte Ltd |
|
|
% |
|
10 Kallang Avenue #12-10, Aperia Tower 2, 339510, Singapore |
|
|
|
|
|
|
|
|
|
South Africa |
|
|
|
|
AstraZeneca Pharmaceuticals (Pty) Limited |
|
|
% |
|
17 Georgian Crescent West, Northdowns Office Park, Bryanston, 2191, South Africa |
|
|
|
|
|
|
|
|
|
South Korea |
|
|
|
|
AstraZeneca Korea Co. Ltd |
|
|
% |
|
21st Floor, Asem Tower, 517, Yeongdong-daero, Gangnam-gu, Seoul, 06164, Republic of Korea |
|
|
|
|
Alexion Pharma Korea LLC |
|
|
% |
|
41 FL., 152 Teheran-ro (Yeoksam-dong Gangnam Finance Center), Gangnam-gu, Seoul, Republic of Korea |
|
|
|
|
|
|
|
|
|
Spain |
|
|
|
|
AstraZeneca Farmaceutica Holding Spain SA |
|
|
% |
|
AstraZeneca Farmaceutica Spain SA |
|
|
% |
|
Evinova Spain SL |
|
|
% |
|
Fundación AstraZeneca |
|
|
% |
|
Laboratorio Beta SA |
|
|
% |
|
Laboratorio Lailan SA |
|
|
% |
|
Laboratorio Tau SA |
|
|
% |
|
Calle del Puerto de Somport, 21-23, Madrid 28050, Spain |
|
|
|
|
Alexion Pharma Spain SL |
|
|
% |
|
Av Diagonal Num.601 P.1, Barcelona 08028, Spain |
|
|
|
|
|
|
|
|
|
Sweden |
|
|
|
|
AstraZeneca AB |
|
|
% |
|
AstraZeneca Biotech AB |
|
|
% |
|
AstraZeneca BioVentureHub AB |
|
|
% |
|
AstraZeneca International Holdings Aktiebolag |
|
|
% |
|
AstraZeneca Pharmaceuticals Aktiebolag |
|
|
% |
|
AstraZeneca Södertälje 2 AB |
|
|
% |
|
Evinova AB |
|
|
% |
|
SE-151 85 Södertälje, Sweden |
|
|
|
|
Alexion Pharma Nordics Holding AB |
|
|
% |
|
Alexion Pharma Nordics AB |
|
|
% |
|
Hagaplan 4, 113 68 Stockholm, Sweden |
|
|
|
|
|
|
|
|
|
Switzerland |
|
|
|
|
Alexion Pharma GmbH |
|
|
% |
|
AstraZeneca AG |
|
|
% |
|
Evinova AG |
|
|
% |
|
Neuhofstrasse 34, 6340 Baar, Switzerland |
|
|
|
|
Spirogen Sarl (in liquidation) |
|
|
% |
|
Rue du Grand-Chêne 5, CH-1003 Lausanne, Switzerland |
|
|
|
|
|
|
|
|
|
Taiwan |
|
|
|
|
Alexion Pharma Taiwan Ltd |
|
|
% |
|
AstraZeneca Taiwan Limited |
|
|
% |
|
21st Floor, Taipei Metro Building 207, Tun Hwa South Road, SEC 2 Taipei, Taiwan |
|
|
|
|
|
|
|
|
|
Thailand |
|
|
|
|
AstraZeneca (Thailand) Limited |
|
|
% |
|
Asia Centre 19th floor, 173/20, South Sathorn Rd, Khwaeng Thungmahamek, Khet Sathorn, Bangkok, 10120, Thailand |
|
|
|
|
|
|
|
|
|
Tunisia |
|
|
|
|
AstraZeneca Tunisie SaRL |
|
|
% |
|
Lot n°1.5.5 les jardins du lac, bloc B les berges du lac Tunis, Tunisia |
|
|
|
|
|
|
|
|
|
Turkey |
|
|
|
|
AstraZeneca Ilac Sanayi ve Ticaret Limited Sirketi |
|
|
% |
|
Y.K.B Plaza, B Blok, Kat:3-4, Levent/Beşiktaş, Istanbul, Turkey |
|
|
|
|
Zeneca Ilac Sanayi ve Ticaret Anonim Sirketi |
|
|
% |
|
Büyükdere Cad., Y.K.B. Plaza, B Blok, Kat:4, Levent/Beşiktaş, Istanbul, Turkey |
|
|
|
|
Alexion Ilac Ticaret Limited Sirketi |
|
|
% |
|
İçerenköy Mahellisi Umut SK. and Ofis Sit. No: 10 12/73 Ataşehir, Istanbul 10-12/73, Turkey |
|
|
|
|
|
|
|
|
|
Ukraine |
|
|
|
|
AstraZeneca Ukraina LLC |
|
|
% |
|
54 Simi Prakhovykh Street, Kyiv, 01033, Ukraine |
|
|
|
|
|
|
|
|
|
United Arab Emirates |
|
|
|
|
AstraZeneca FZ-LLC |
|
|
% |
|
Dubai Sciences Park Towers, Tower South, S1706S, Dubai Sciences Park, Dubai, United Arab Emirates |
|
|
|
|
Alexion Pharma Middle East FZ-LLC |
|
|
% |
|
Dubai Science Park, 501, Floor 5, EIB Building No. 2, Dubai, United Arab Emirates |
|
|
|
|
|
|
|
|
|
United Kingdom |
|
|
|
|
Alexion Pharma UK Limited |
|
|
% |
|
Ardea Biosciences Limited |
|
|
% |
|
Arrow Therapeutics Limited |
|
|
% |
|
Astra Pharmaceuticals Limited |
|
|
% |
|
AstraPharm |
|
|
% |
|
AstraZeneca China UK Limited |
|
|
% |
|
AstraZeneca Death In Service Trustee Limited |
|
|
% |
|
AstraZeneca Employee Share Trust Limited |
|
|
% |
|
AstraZeneca Finance Limited |
|
|
% |
|
AstraZeneca Intermediate Holdings Limited 8 |
|
|
% |
|
AstraZeneca Investments Limited |
|
|
% |
|
AstraZeneca Japan Limited |
|
|
% |
|
AstraZeneca Nominees Limited |
|
|
% |
|
AstraZeneca Quest Limited |
|
|
% |
|
AstraZeneca Share Trust Limited |
|
|
% |
|
AstraZeneca Sweden Investments Limited |
|
|
% |
|
AstraZeneca Treasury Limited |
|
|
% |
|
AstraZeneca UK Limited |
|
|
% |
|
AstraZeneca US Investments Limited 8 |
|
|
% |
|
AZENCO2 Limited |
|
|
% |
|
AZENCO4 Limited |
|
|
% |
|
AZENCO5 Limited |
|
|
% |
|
AZENCO6 Limited |
|
|
% |
|
Cambridge Antibody Technology Group Limited |
|
|
% |
|
Evinova Limited |
|
|
% |
|
KuDOS Horsham Limited |
|
|
% |
|
KuDOS Pharmaceuticals Limited |
|
|
% |
|
Zenco (No. 8) Limited |
|
|
% |
|
Zeneca Finance (Netherlands) Company |
|
|
% |
|
MedImmune Limited |
|
|
% |
|
1 Francis Crick Avenue, Cambridge Biomedical Campus, Cambridge, CB2 0AA, United Kingdom |
|
|
|
|
MedImmune U.K. Limited |
|
|
% |
|
Plot 6, Renaissance Way, Boulevard Industry Park, Liverpool, L24 9JW, United Kingdom |
|
|
|
|
Syntimmune Limited |
|
|
% |
|
21 Holborn Viaduct, London, EC1A 2DY, United Kingdom |
|
|
|
|
|
|
|
|
|
United States |
|
|
|
|
Acerta Pharma LLC 9 |
|
|
% |
|
121 Oyster Point Boulevard, South San Francisco, CA 94080, United States |
|
|
|
|
Alexion Pharmaceuticals, Inc. |
|
|
% |
|
Achillion Pharmaceuticals Inc. |
|
|
% |
|
Alexion US1 LLC 9 |
|
|
% |
|
Savoy Therapeutics Corp |
|
|
% |
|
Syntimmune LLC 9 |
|
|
% |
|
TeneoTwo, Inc. |
|
|
% |
|
121 Seaport Boulevard Boston, MA 02210, United States |
|
|
|
|
Alexion Services Latin America Inc. |
|
|
% |
|
600 Brickell Ave, Miami, FL 33131, United States |
|
|
|
|
AlphaCore Pharma, LLC 9 |
|
|
% |
|
333 Parkland Plaza, Suite 5, Ann Arbor, MI 48103, United States |
|
|
|
|
Amolyt Pharma Inc. |
|
|
% |
|
185 Alewife Brook Pkwy, Suite 210, Cambridge, MA 02138, United States |
|
|
|
|
Amylin Ohio LLC 9 |
|
|
% |
|
Amylin Pharmaceuticals, LLC 9 |
|
|
% |
|
Ardea Biosciences, Inc. |
|
|
% |
|
AstraZeneca Collaboration Ventures, LLC 9 |
|
|
% |
|
AstraZeneca Finance and Holdings Inc. |
|
|
% |
|
AstraZeneca Finance LLC 9 |
|
|
% |
|
AstraZeneca Pharmaceuticals LP 10 |
|
|
% |
|
Atkemix Nine Inc. |
|
|
% |
|
Atkemix Ten Inc. |
|
|
% |
|
Corpus Christi Holdings Inc. |
|
|
% |
|
LogicBio Securities Corporation |
|
|
% |
|
LogicBio Therapeutics, Inc. |
|
|
% |
|
Neogene Therapeutics, Inc. |
|
|
% |
|
Omthera Pharmaceuticals, Inc. |
|
|
% |
|
Optein, Inc. |
|
|
% |
|
Stauffer Management Company LLC 9 |
|
|
% |
|
Zeneca Inc. |
|
|
% |
|
Zeneca Holdings Inc. |
|
|
% |
F-65
|
Zeneca Wilmington Inc. 8 |
|
|
% |
|
1800 Concord Pike, Wilmington, DE 19803, United States |
|
|
|
|
AZ-Mont Insurance Company |
|
|
% |
|
100 Bank Street, Suite 630, Burlington, VT 05401, United States |
|
|
|
|
Caelum Biosciences Inc. |
|
|
% |
|
1200 Florence Columbus Road, Bordentown, NJ 08505, United States |
|
|
|
|
Cincor Pharma Inc. |
|
|
% |
|
100 College Street, New Haven, CT 06510, United States |
|
|
|
|
Evinova Inc. |
|
|
% |
|
101 Orchard Ridge Drive, Gaithersburg, MD 20878, United States |
|
|
|
|
Fusion Pharmaceuticals US Inc. |
|
|
% |
|
2 International Place, Suite 2310, Boston, MA 02110, United States |
|
|
|
|
Gracell Biopharmaceuticals, Inc. |
|
|
% |
|
530 Lytton Avenue, 2nd Floor, Palo Alto, CA 94301, United States |
|
|
|
|
Icosavax, Inc. |
|
|
% |
|
1930 Boren Avenue, Suite 1000, Seattle, WA 98101, United States |
|
|
|
|
MedImmune, LLC 9 |
|
|
% |
|
MedImmune Ventures, Inc. |
|
|
% |
|
One MedImmune Way, Gaithersburg, MD 20878, United States |
|
|
|
|
Pearl Therapeutics, Inc. |
|
|
% |
|
200 Cardinal Way, Redwood City, CA 94063, United States |
|
|
|
|
Portola Pharmaceuticals LLC |
|
|
% |
|
Portola USA, Inc. |
|
|
% |
|
270 East Grand Avenue, South San Francisco, CA 94080, United States |
|
|
|
|
ZS Pharma, Inc. |
|
|
% |
|
1100 Park Place, Suite 300, San Mateo, CA 94403, United States |
|
|
|
|
At 31 December 2024 |
|
Group Interest |
|
|
Uruguay |
|
|
|
|
AstraZeneca S.A. |
|
|
% |
|
Yaguarón 1407 of 1205, 11.100, Montevideo, Uruguay |
|
|
|
|
|
|
|
|
|
Venezuela |
|
|
|
|
AstraZeneca Venezuela S.A. |
|
|
% |
|
Gotland Pharma S.A. |
|
|
% |
|
Av. La Castellana, Torre La Castellana, Piso 5, Oficina 5-G, 5-H, 5-I, Urbanización La Castellana, Municipio Chacao, Estado Bolivariano de Miranda, Venezuela |
|
|
|
|
|
|
|
|
|
Vietnam |
|
|
|
|
AstraZeneca Vietnam Company Limited |
|
|
% |
|
18th Floor, A&B Tower, 76 Le Lai, Ben Thanh Ward, District 1, Ho Chi Minh City, Vietnam |
|
|
|
|
|
|
|
|
|
Subsidiaries where the effective interest is less than 100% |
|
|
|
|
Algeria |
|
|
|
|
AstraZeneca Algeria Pharmaceutical Industries SPA |
|
|
% |
|
N° 20, Micro Zone d’Activité Hydra, Centre des Affaires Dar El Madina, Bloc A, 6th Floor, Hydra, Algiers, Algeria |
|
|
|
|
|
|
|
|
|
China |
|
|
|
|
Beijing Falikang Pharmaceutical Co., Ltd. |
|
|
% |
|
Room 113, Floor 1, Unit 1, Building No. 6, 88 Kechuang 6th Street, Economic-Technological Development Area, Beijing, China |
|
|
|
|
|
|
|
|
|
India |
|
|
|
|
AstraZeneca Pharma India Limited 6 |
|
|
% |
|
Block N1, 12th Floor, Manyata Embassy Business Park, Rachenahalli, Outer Ring Road, Bangalore-560 045, India |
|
|
|
|
|
|
|
|
|
Indonesia |
|
|
|
|
P.T. AstraZeneca Indonesia |
|
|
% |
|
Perkantoran Hijau Arkadia Tower F, 3rd Floor, JI. T.B. Simatupang Kav. 88, South Jakarta, 12520, Indonesia |
|
|
|
|
|
|
|
|
|
Switzerland |
|
|
|
|
SixPeaks Bio AG 11, 13 |
|
|
% |
|
Aeschenvorstadt 36, 4501 Basel, Switzerland |
|
|
|
|
|
|
|
|
|
United States |
|
|
|
|
VaxNewMo, LLC 12, 13 |
|
|
% |
|
4447 McPherson Avenue, St. Louis, MO 63108, United States |
|
|
|
|
|
|
|
|
|
Joint Ventures |
|
|
|
|
Hong Kong |
|
|
|
|
IHP HK Holdings Limited |
|
|
% |
|
Unit 1402, 14th Floor, Henley Building, No. 5 Queen’s Road Central, Hong Kong |
|
|
|
|
WuXi MedImmune Biopharmaceutical Co., Limited (in liquidation) |
|
|
% |
|
Room 1902, 19/F, Lee Garden One, 33 Hysan Avenue, Causeway Bay, Hong Kong |
|
|
|
|
|
|
|
|
|
United States |
|
|
|
|
Montrose Chemical Corporation of California |
|
|
% |
|
Suite 380, 600 Ericksen Ave N/E, Bainbridge Island, WA 98110, United States |
|
|
|
|
|
|
|
|
|
Significant Holdings |
|
|
|
|
China |
|
|
|
|
Dizal (Jiangsu) Pharmaceutical Co., Ltd. |
|
|
% |
|
199 Liangjing Rd, Zhangjiang Hi-Tech Park, Pudong District, Shanghai, 201203, China |
|
|
|
|
Wuxi AstraZeneca-CICC Venture Capital Partnership (Limited Partnership) |
|
|
% |
|
Wuxi AstraZeneca-CICC No.1 Venture Capital Partnership (Limited Partnership) |
|
|
% |
|
Room 808, 8F, Building 99-2 Linghu Avenue, Xinwu District, Wuxi, Jiangsu, China |
|
|
|
|
|
|
|
|
|
United Kingdom |
|
|
|
|
VaxEquity Ltd. 13 (in liquidation) |
|
|
% |
|
Victory House, Vision Park, Chivers Way, Histon, Cambridge, CB24 9ZR, United Kingdom |
|
|
|
|
|
|
|
|
|
United States |
|
|
|
|
C.C. Global Chemicals Company |
|
|
% |
|
P.O. Box 7, MS2901, TX 76101-0007, United States |
|
|
|
|
|
|
|
|
|
Associated Holdings |
|
|
|
|
Cayman Islands |
|
|
|
|
Fuse Biosciences (Cayman) Limited 13 |
|
|
% |
|
3-212 Governors Square, 23 Lime Tree Bay Avenue, P.O. Box 30746, Seven Mile Beach, Grand Cayman KY1-1203, Cayman Islands |
|
|
|
|
|
|
|
|
|
France |
|
|
|
|
Medetia SAS 13 |
|
|
% |
|
Institute Imagine, 24 Boulevard du Montparnasse, 75015 Paris, France |
|
|
|
|
Cellectis S.A. 3 |
|
|
% |
|
8, rue de la Croix Jarry, 75013 Paris, France |
|
|
|
|
|
|
|
|
|
Israel |
|
|
|
|
AION Labs Innovation Lab Ltd. |
|
|
% |
|
CombinAble.AI Ltd. 13 |
|
|
% |
|
ProPhet Bio Ltd. 13 |
|
|
% |
|
TenAces Biosciences Ltd. 13 |
|
|
% |
|
4 Oppenheimer Street, Building B, Rehovot, 7670104, Israel |
|
|
|
|
|
|
|
|
|
Sweden |
|
|
|
|
Swedish Orphan Biovitrum AB (publ) |
|
|
% |
|
Tomtebodavägen 23A, Stockholm, Sweden |
|
|
|
|
OnDosis AB |
|
|
% |
|
GoCo House, 5 tr, Gemenskapens gata 9, 431 53 Mölndal, Sweden |
|
|
|
|
CCRM Nordic AB |
|
|
% |
|
Förändringens Gata 10, 431 53 Mölndal, Sweden |
|
|
|
|
|
|
|
|
|
United Kingdom |
|
|
|
|
Niox Group plc |
|
|
% |
|
Magdalen Centre, 1 Robert Robinson Ave, Science Park, Oxford, OX4 4GA, United Kingdom |
|
|
|
|
|
|
|
|
|
United States |
|
|
|
|
AbMed Corporation 3 |
|
|
% |
|
68 Cummings Park Drive, Woburn, MA 01801, United States |
|
|
|
|
Baergic Bio, Inc. |
|
|
% |
|
1111 Kane Concourse, Suite 301, Bay Harbor Islands, FL 33154, United States |
|
|
|
|
Regio Biosciences, Inc. 13 |
|
|
% |
|
5237 River Road, #361 Bethesda, MD 20816, United States |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee Benefit Trusts |
|
|
|
|
The AstraZeneca Employee Benefit Trust |
|
|
|
|
AstraZeneca PSP/GRSP EBP for Canadian Employees |
|
|
|
| 1 | Ownership held in ordinary and special shares. |
| 2 | Ownership held by way of capital contribution. |
| 3 | Ownership held in ordinary and preference shares. |
| 4 |
|
| 5 | Sold to external third party effective 17 January 2025. |
| 6 | Accounting year end is 31 March. |
| 7 | Accounting year end is 30 June. |
| 8 | Directly held by AstraZeneca PLC. |
| 9 | Ownership held as membership interest. |
| 10 | Ownership held as partnership interest. |
| 11 | Consolidated due to AstraZeneca AB having an option to acquire. |
| 12 | Consolidated due to Zeneca Inc. having an option to acquire. |
| 13 | Ownership held in preference shares. |
F-66