Conference call agenda FY and Q4 2025 Results Conference call and webcast for investors and analysts 10 February 2026 Cautionary statements regarding forward-looking statements In order, among other things, to utilise the 'safe harbour' provisions of the US Private Securities Litigation Reform Act of 1995, AstraZeneca (hereafter 'the Group') provides the following cautionary statement: This document contains certain forward-looking statements with respect to the operations, performance and financial conditi ...

Key Takeaways AZN will report Q4 results on Feb. 10, with cancer and diabetes drugs expected to drive quarterly sales.INCY and VRTX's Q4 results to be supported by Jakafi growth and CF drug demand, respectively.GILD and MRNA look to product portfolio strength as vaccine and liver disease sales shape results.The fourth-quarter earnings season continues to be in full swing this week, with many large drugmakers like AstraZeneca (AZN) , Incyte (INCY) , Gilead Sciences (GILD) , Vertex Pharmaceuticals (VRTX) and ...

Key Takeaways AZN will report Q4 results on Feb. 10, with consensus estimates of $15.71B in sales and $2.18 EPS.Key oncology drugs Calquence, Lynparza, Tagrisso and Imfinzi, plus Farxiga, are expected to lead sales.AZN's rare disease portfolio and alliance revenues are seen supporting growth, even as operating costs rise.AstraZeneca (AZN) is scheduled to report fourth-quarter and full-year 2025 results on Feb. 10, before the opening bell. In the last reported quarter, the company delivered an earnings surpr ...

Core Insights - AstraZeneca PLC is positioned as a leading healthcare stock for 2026, with a significant $15 billion investment in China aimed at expanding manufacturing and R&D capabilities by 2030 [1][2] Investment and Expansion - The investment will enhance AstraZeneca's capabilities in cell therapy and radioconjugates, while also fostering deeper healthcare collaborations between China and the UK [1][2] - The company plans to grow its workforce in China to over 20,000 and expand facilities in Wuxi, Taizhou, Qingdao, and Beijing, with additional sites planned [2] Financial Performance Expectations - Guggenheim has reiterated a Buy rating for AstraZeneca, anticipating strong fourth-quarter and 2025 financial results, with expectations of high single-digit revenue growth around $58.5 billion and double-digit EPS growth reaching $9.15 per share [3] - AstraZeneca is expected to guide for mid-single-digit revenue growth, surpassing consensus estimates, and project low double-digit earnings growth against forecasts of 10-12% [4] Pipeline and Future Outlook - Confidence in AstraZeneca's 2030 outlook is increasing as the company advances its pipeline to mitigate the impact of upcoming patent expirations for key products like Imfinzi and Tagrisso [4] - Investors are closely monitoring updates on several candidates, including oral GLP-1 candidate AZD5004 and amylin AZD6234, to strengthen its cardiovascular and metabolic portfolio [4]

Core Insights - A significant portion of AbbVie's revenues is derived from its oncology franchise, which has expanded from blood cancer drugs to include therapies for solid tumors, contributing over 11% to total revenues in the first nine months of 2025 with a year-over-year growth of 3% [1][7] Oncology Segment Performance - Fourth-quarter 2025 sales for AbbVie's oncology segment are estimated at $1.75 billion, reflecting nearly 4% year-over-year growth, driven by Venclexta, Epkinly, and Elahere, although this growth may be partially offset by declining sales of Imbruvica due to increased competition [2][7] - AbbVie's oncology portfolio includes five therapies, with the latest additions being Epkinly, Elahere, and Emrelis, which was approved in May 2025 [1][2] Competitive Landscape - Major competitors in the oncology space include AstraZeneca, Merck, and Pfizer, with AstraZeneca's oncology sales accounting for 43% of total revenues and growing 16% year-over-year in the first nine months of 2025 [4] - Merck's Keytruda accounted for approximately 48% of its total revenues, while Pfizer's oncology revenues grew by 7%, driven by several key drugs [5] Investor Focus and Valuation - Investor attention is primarily on AbbVie's immunology franchise, which includes Humira, Rinvoq, and Skyrizi, as the company prepares to report fourth-quarter and full-year 2025 results [3][7] - AbbVie is currently trading at a price/earnings (P/E) ratio of 15.19, which is below the industry average of 17.56, indicating a potential valuation opportunity [8]

Core Insights - Amgen has acquired Dark Blue Therapeutics for approximately $840 million, enhancing its oncology pipeline [1][8] - The acquisition adds a preclinical small-molecule degrader targeting MLLT1/3 proteins associated with specific types of acute myeloid leukemia (AML) [2][8] - Amgen currently does not market any therapies for AML but has Blincyto approved for acute lymphoblastic leukemia (ALL) and is developing bispecific T-cell engagers for AML [3][8] Amgen's Oncology Pipeline - Amgen has a diverse oncology portfolio, including drugs like Blincyto, Imdelltra, Lumakras, Vectibix, Kyprolis, Nplate, and Xgeva [6] - Key candidates in its late-stage oncology pipeline include bemarituzumab for gastric cancer and xaluritamig for metastatic castrate-resistant prostate cancer [6] - Ongoing phase III studies are evaluating Imdelltra in small cell lung cancer and biosimilars for Opdivo, Keytruda, and Ocrevus [6] Competitive Landscape - Major competitors in the oncology space include Pfizer, AstraZeneca, Merck, Johnson & Johnson, and Bristol-Myers [9] - Pfizer's oncology sales account for about 28% of total revenues, with a 7% increase in the first nine months of 2025 [10] - AstraZeneca's oncology segment comprises around 43% of total revenues, with a 16% increase in sales during the same period [11] - Merck's Keytruda, a key oncology drug, generated $23.3 billion in sales in the first nine months of 2025, up 8% year over year [12] - Bristol-Myers' Opdivo accounts for approximately 20% of its total revenues, with sales rising 8% to $7.54 billion [13] - Johnson & Johnson's oncology sales represent around 27% of total revenues, with a 20.6% operational increase in the first nine months of 2025 [14]

Core Insights - Johnson & Johnson (JNJ) and AstraZeneca (AZN) are among the largest pharmaceutical companies globally, with diverse healthcare portfolios and strong oncology segments [1][2] - JNJ's diversified business model includes pharmaceuticals and medical devices, while AZN focuses heavily on oncology sales, which account for approximately 43% of its total revenues [2][12] - Both companies face challenges such as patent expirations and the redesign of Medicare Part D, impacting their growth prospects [2][10] Johnson & Johnson (JNJ) - JNJ's strength lies in its diversified business model, operating through over 275 subsidiaries, which reduces reliance on any single drug [3] - The Innovative Medicine unit reported a 3.4% organic sales growth in the first nine months of 2025, driven by key drugs like Darzalex and new launches [4] - JNJ's MedTech business has shown improvement, particularly from acquired cardiovascular businesses and advancements in electrophysiology [5] - The potential separation of its Orthopaedics franchise into a standalone company, DePuy Synthes, is expected to enhance growth and margins in the MedTech unit [6] - JNJ anticipates accelerated growth in both Innovative Medicine and MedTech segments in 2026 [8] - The company has made significant advancements in its pipeline, gaining approvals for new products that could drive future growth [9] - JNJ's diversified model supports steady growth, with 2025 gains attributed to Innovative Medicine and improving MedTech performance [10] - JNJ estimates that 10 new products could achieve peak sales of $5 billion, despite facing challenges like the Stelara patent cliff and ongoing talc lawsuits [11] AstraZeneca (AZN) - AZN has several blockbuster drugs exceeding $1 billion in sales, contributing to its revenue growth, with new products offsetting losses from mature brands [12][13] - The company aims for industry-leading top-line growth, projecting total revenues of $80 billion by 2030, with plans to launch 20 new medicines [14] - AZN faces challenges from the redesign of Medicare Part D affecting U.S. oncology sales and competition from generics and biosimilars [15] - The company expects fourth-quarter revenues to be impacted by VBP-related costs and budget constraints in China [16] Financial Estimates and Performance - The Zacks Consensus Estimate for JNJ's 2026 sales and EPS indicates year-over-year increases of 4.97% and 5.74%, respectively [17] - In contrast, AZN's 2026 sales and EPS estimates imply increases of 6.02% and 12.23% [19] - JNJ's stock has risen 39.8% over the past year, while AZN's stock has increased by 36.9%, outperforming the industry average of 18.8% [21] - JNJ's current price/earnings ratio is 17.76, slightly higher than AZN's 17.65, with both companies trading above industry averages [23] - JNJ offers a dividend yield of 2.6%, compared to AZN's 1.1% [25] Investment Considerations - Both JNJ and AZN have shown strong performance in 2025 and are optimistic about growth in 2026, with both stocks rated as Zacks Rank 3 (Hold) [26] - JNJ's consistent revenue and EPS growth, along with strong cash flows and a history of dividend increases, positions it favorably despite facing headwinds [27][28]

Core Insights - Pfizer anticipates a significant revenue decline due to the loss of exclusivity for key products between 2026 and 2030, including Eliquis, Vyndaqel, Ibrance, Xeljanz, and Xtandi, all facing patent expirations [1][9] - The company has bolstered its R&D pipeline through mergers and acquisitions, successful data readouts, and pivotal program initiations, positioning itself for sustainable growth post-LOE [1][7] Oncology Pipeline - Pfizer has advanced its oncology pipeline with several candidates in late-stage development, including vepdegestrant for ER+/HER2- metastatic breast cancer, atirmociclib for HR+/HER2- metastatic breast cancer, and sigvotatug vedotin for metastatic non-small cell lung cancer [2] - By 2030, Pfizer expects to have eight or more blockbuster oncology medicines in its portfolio [4] Non-Oncology Developments - In non-oncology areas, Pfizer is developing an mRNA flu/COVID combination vaccine and osivelotor for sickle cell disease, both in late-stage development [4] - The company is also expanding the labels of approved products like Padcev, which was recently approved by the FDA in combination with Merck's Keytruda for specific bladder cancer patients [5] Obesity Market Expansion - Pfizer is strengthening its presence in the obesity market, currently dominated by Eli Lilly and Novo Nordisk, through the $10 billion acquisition of Metsera and the in-licensing of YP05002, an oral GLP-1 receptor agonist [6] - The Metsera acquisition added four novel clinical-stage programs for obesity, expected to generate billions in peak sales [6] Competitive Landscape - Pfizer faces revenue headwinds from patent expirations but is positioned for long-term growth through its expanding late-stage pipeline in oncology and investments in obesity, vaccines, and rare diseases [7] - The oncology market is competitive, with major players like AstraZeneca, Merck, Johnson & Johnson, and Bristol-Myers also focusing on oncology sales [10][11][12][13] Financial Performance - Pfizer's stock has declined 7% over the past year, while the industry has seen a 16% increase [14] - The company's shares are trading at a forward price/earnings ratio of 8.18, below the industry average of 17.40 and its own 5-year mean of 10.39, indicating attractive valuation [16] - The Zacks Consensus Estimate for 2025 earnings has increased slightly to $3.10 per share, while the estimate for 2026 has decreased to $3.04 per share [18]

Core Insights - AbbVie (ABBV) and AstraZeneca (AZN) are both leading global healthcare companies with diverse drug portfolios, excelling in immunology and oncology, with AbbVie also focusing on neuroscience and aesthetics, while AstraZeneca emphasizes rare diseases and vaccines [1][2] AbbVie Overview - AbbVie has achieved significant success in immunology with three blockbuster drugs: Skyrizi, Rinvoq, and Humira, which together contribute nearly 50% of its revenue [3] - Despite losing U.S. exclusivity for Humira in 2023, AbbVie has returned to strong growth, with Skyrizi and Rinvoq sales increasing by 53% year-over-year to $18.5 billion, and projected to exceed $25 billion by 2025 [4] - The oncology segment generated approximately $5 billion in revenue in the first nine months of 2025, up nearly 3% year-over-year, while neuroscience drug sales rose over 20% to nearly $7.8 billion [5] - AbbVie has pursued an aggressive acquisition strategy, completing over 30 M&A transactions since early 2024, including acquiring Gilgamesh Pharmaceuticals for a drug in mid-stage development for major depressive disorder [6] - AbbVie faces near-term challenges, including biosimilar competition for Humira, pressure on Imbruvica sales, and a decline in its aesthetics franchise, which saw a 7% drop in sales in the first nine months of 2025 [7] AstraZeneca Overview - AstraZeneca has a diversified geographical presence and a portfolio of blockbuster drugs, including Imfinzi, Lynparza, Farxiga, Ultomiris, and Tagrisso, which are driving revenue growth [8][9] - The company aims for $80 billion in total revenues by 2030, supported by the launch of 20 new medicines, with nine already launched or approved [10] - AstraZeneca has also expanded its pipeline through acquisitions, including EsoBiotec, a biotech specializing in cell therapies [11] - Challenges for AstraZeneca include the impact of U.S. policy changes on oncology sales, ongoing investigations in China, and competition from generics and biosimilars affecting key drugs [12][13] Financial Estimates and Performance - The Zacks Consensus Estimate for AbbVie indicates an 8.2% increase in 2025 sales and a 5.1% increase in EPS, with recent EPS estimates declining from $11.04 to $10.64 [14] - For AstraZeneca, the 2025 sales and EPS estimates suggest a 9% and 11.9% increase, respectively, with EPS estimates rising from $4.56 to $4.60 [16] - Year-to-date, AbbVie shares have increased by 28%, while AstraZeneca shares have risen by 40%, outperforming the industry average of 17% [17] - AbbVie has a lower P/E ratio of 15.90 compared to AstraZeneca's 17.81, making AbbVie appear more attractive from a valuation perspective [18] - AbbVie offers a higher dividend yield of 2.88% compared to AstraZeneca's 1.10% [22] Comparative Analysis - Both companies hold a Zacks Rank of 3 (Hold), indicating a challenging decision for investors [24] - AbbVie's recovery post-Humira is notable, driven by Skyrizi and Rinvoq, but its reliance on acquisitions may weigh on near-term earnings [25] - AstraZeneca's growth profile is more balanced, with a diverse range of blockbuster products reducing reliance on any single drug [27]

Industry Overview - The drug and biotech sector has shown recovery after a weak first half, with large drugmakers signing pricing agreements with the Trump administration [1] - Dealmaking activity surged in the second half, boosting investor confidence, with the Large Cap Pharmaceuticals industry outperforming the S&P 500 in the past three months [1][4] - Innovation is at its peak, particularly in areas like obesity, cell and gene therapy, and next-gen oncology treatments, attracting investor attention [2] - Despite headwinds such as pipeline setbacks and regulatory risks, the outlook for growth in 2026 remains favorable due to rapid innovation and increased use of AI in drug development [2] Eli Lilly - Eli Lilly has achieved significant success with its tirzepatide medicines, including diabetes drug Mounjaro and weight loss medicine Zepbound, which are key revenue drivers [6][7] - Strong sales growth in 2025 is attributed to international market launches and improved production, with continued demand expected in 2026 [7] - Lilly is investing in obesity treatments with new molecules in clinical development, including orforglipron and retatrutide, with regulatory applications filed for orforglipron [8][9] - Despite challenges like declining product prices and competition in the GLP-1 market, Lilly's stock has risen 39.3% year to date, with 2026 earnings estimates improving from $30.78 to $33.61 per share [10] Johnson & Johnson - J&J has shown strong operational performance in 2025, with double-digit revenue growth from key brands despite the loss of exclusivity for Stelara [11] - The Innovative Medicine segment is expected to accelerate growth in 2026, driven by key products and new launches [12] - J&J's MedTech business has improved, with growth driven by acquired cardiovascular businesses and new product launches expected to contribute to 2026 growth [13][14] - The company has advanced its pipeline significantly and is on an acquisition spree, with a Zacks Rank of 2 (Buy) and a stock rise of 43.3% year to date [17] AbbVie - AbbVie faces declining sales from Humira due to loss of exclusivity but has successfully launched new immunology medicines Skyrizi and Rinvoq, generating combined sales of $18.5 billion in the first nine months of 2025 [18][19] - Strong market growth and new indications for these drugs are expected to drive future growth, alongside contributions from newer drugs [20] - AbbVie anticipates a high single-digit CAGR through 2029, supported by robust performance from Skyrizi and Rinvoq, with a Zacks Rank of 3 and a stock rise of 28.2% year to date [21][22] Amgen - Amgen's revenue growth is driven by key medicines like Repatha and new biosimilars, compensating for declines from mature drugs [23][24] - The company is focusing on obesity treatments with its candidate MariTide, which differentiates itself with a convenient dosing method [24] - Amgen's stock has risen 27.3% year to date, with 2026 earnings estimates increasing from $21.43 to $21.62 per share [25] AstraZeneca - AstraZeneca has several blockbuster drugs exceeding $1 billion in sales, with newer products contributing to growth despite losses from mature brands [26][27] - The company expects to achieve industry-leading top-line growth through 2030, with plans to launch 20 new medicines and generate $80 billion in total revenues [28] - AstraZeneca faces challenges such as competition and regulatory impacts but maintains a stable earnings estimate of $5.15 per share for 2026, with a stock rise of 10.7% year to date [29][30]