What science can do
Annual Report and Form 20-F
Information 2020
Our Purpose
Inspired by our Values and what science can do, we are focused on accelerating the delivery of life-changing medicines that create enduring value for patients and society.
We are committed to operating in a way that recognises the interconnection between business growth, the needs of society and the limitations of our planet.
Our patient-centric strategy, focus on innovation and capital-allocation priorities remain unchanged.
Leif Johansson, Chairman
I am confident that we will continue to deliver more progress for patients and sustained, compelling results.
Pascal Soriot, Chief Executive Officer
Strategic overview
We are a global pharmaceutical business with a science-led and patient-focused value proposition:
- Focus on three main therapy areas: Oncology; Cardiovascular, Renal & Metabolism (CVRM); and Respiratory & Immunology (R&I)
- Diversified portfolio of specialty and primary care medicines
- Global strength, balanced presence across regions
- Commitment to people and society
Accelerate Innovative Science
Delivering the next wave of our innovative pipeline and ensuring the sustainable delivery of new products.
36
Pipeline progression events
(2019: 22)
53
Regulatory events
(2019: 63)
Deliver Growth and Therapy Area Leadership
Meeting our growth and profitability goals by driving growth through successful innovation and commercial excellence, and creating sustainable profitability.
$26,617m
Total Revenue
(2019: $24,384m)
Be a Great Place to Work
Contributing to the enterprise, with a focus on inclusion and diversity, lifelong learning and development, and to society, by improving access to healthcare, environmental protection, and ethics and transparency.
89%
Employee belief that AstraZeneca is a great place to work
(2019: 86%)
93%
Sustainability scorecard performance
(2019: 86%)
COVID-19 response
AstraZeneca’s response to the COVID-19 pandemic was consistent with our Values of following the science, putting patients first and doing the right thing.
Our priorities were driven by the needs of patients, caregivers and communities. To respond effectively, we partnered with governments, international organisations, healthcare practitioners, industry and non-profit organisations.
Our priorities
Help ensure the safety of patients and their continued access to care and medicines.
In addition to our longstanding support, in 2020 we made additional financial commitments to dozens of patient advocacy groups and professional societies across the globe to prioritise continuity of care during the pandemic.
Protect critical operations to ensure the continued supply of our medicines to patients who need them.
The pandemic placed challenges on global supply chains, in particular for the highly integrated pharmaceutical sector. We monitored the situation closely, working with national authorities and agencies, activating business continuity plans and managing inventory to ensure manufacturing and supply continuity.
Ensure the safety and wellbeing of our employees.
We are committed to providing safe working environments for our employees and suppliers. Throughout the pandemic, our employees adapted to new ways of working and a secure digital platform was rolled out to more than 77,000 in eight days.
Contribute to the process of scientific innovation to combat the virus.
In April 2020, we concluded an agreement with the University of Oxford for the global development, production and supply of their potential vaccine for COVID-19. We are also trialling novel coronavirus-neutralising antibodies as a potential preventative or treatment approach.
Contribute broadly to society, including emergency relief.
At the start of the pandemic, and faced with a critical shortage of protective medical equipment, we donated emergency supplies and resources to support health systems around the world. We donated nine million face masks to 49 countries.
Financial Highlights
In 2020, Total Revenue, comprising Product Sales and Collaboration Revenue, increased by 9% (10% at CER) to $26,617 million. Product Sales grew by 10% (11% at CER) to $25,890 million. Collaboration Revenue fell by 11% (11% at CER) to $727 million.
Total Revenue from New Medicines increased by 33% (33% at CER) to $13,950 million, representing 52% of Total Revenue (2019: 43%).
Revenue and Cash
Total Revenue*
Up 9% at actual rate of exchange to $26,617 million (up 10% at CER), comprising Product Sales of $25,890 million (up 10%; 11% at CER) and Collaboration Revenue of $727 million (down 11%; 11% at CER)
$26.6bn
Net cash flow from operating activities
Up 62% at actual rate of exchange to $4,799 million
$4.8bn
// Denotes a scale break. All bar chart scales start from zero. We use a scale break where charts of a different magnitude, but the same unit of measurement, are presented alongside each other.
*Total Revenue consists of Product Sales and Collaboration Revenue.
Operating profit
Reported operating profit
Up 77% at actual rate of exchange to $5,162 million (up 81% at CER)
$5.2bn
Core operating profit
Up 14% at actual rate of exchange to $7,340 million (up 17% at CER)
$7.3bn
EPS
Reported EPS
Up 137% at actual rate of exchange to $2.44 (up 142% at CER)
$2.44
Core EPS
Up 15% at actual rate of exchange to $4.02 (up 18% at CER)
$4.02
// Denotes a scale break. All bar chart scales start from zero. We use a scale break where charts of a different magnitude, but the same unit of measurement, are presented alongside each other.
Sustainability Highlights
In 2020, we continued toward our ambition of leading in sustainability. We presented at the United Nations General Assembly on health system resiliency, in support of broadening access to healthcare; progressed our Ambition Zero Carbon commitment, now sourcing 99.9% of our imported electricity globally from renewable sources; and deepened our commitment to inclusion and diversity by committing to ensure racial equity in our workplace and access to our medicines.
Access to healthcare
Access to healthcare
Our ambitions to 2025:
Work towards a future where all people have access to sustainable healthcare solutions for life-changing treatment and disease prevention
Our global development impact:
Progress in 2020:
25.0m
People reached through our access to healthcare programmes
(2019: 20.5m)
Environmental protection
Environmental protection
Our ambitions to 2025:
Demonstrate global leadership to proactively manage our environmental impact across all our activities and products.
Our global development impact:
Progress in 2020:
248 kt CO2e
Scope 1 and 2 greenhouse gas (GHG) footprint
(2019: 385 kt CO2e)
Ethics and transparency
Ethics and transparency
Our ambitions to 2025:
Create positive societal impact and promote ethical behaviour in all markets across our value chain.
Our global development impact:
Progress in 2020:
49.1 cases per 1,000 employees
in Commercial Business Units in non-compliance with our Code of Ethics
(2019: 63.3)
For more information on our targets and performance, and contribution to the UN Sustainable Development Goals, see our 2020 Sustainability Report available on our website, pf45.jmswierski.com/sustainability.
