1. Author | 00 Month Year Set area descriptor | Sub level 1 The Alderley Park Story and Pharma Trends Dr Chris Doherty Vice-President AstraZeneca

2. A brief history 1087 – First record of Alderley in Doomsday Book 1750 – Alderley Hall rebuilt 1818 – Alderley House built on site 1914 – Site used as a hospital during WWI 1933 – Alderley House demolished due to fire damage WWII – Land ploughed to grow corn 1950 – Site bought by ICI 1957 – Mereside research labs built 1963 – Current Alderley House built 1993 – Alderley Park became international HQ of Zeneca Pharmaceuticals 1999 – AstraZeneca formed

3. Bicalutamide (prostate cancer) Tamoxifen (breast cancer) Anastrozole (breast cancer) Goserelin (breast and prostate cancers) Gefitinib (lung cancer) Fulvestrant (breast cancer) Scientific breakthroughs in Alderley Park 19701980199020002010 Vandetanib (medullary thyroid cancer) Future: Olaparib Selumetanib AZD9291 Tenormin Hypertension Diprivan General anaesthetic Tomudex CRC Inderal Propranolol

4. Alderley Park - a major global R&D site in 2013 Strengths: Successful track record Very experienced staff £550m invested since 1999 in buildings and equipment Full spectrum R&D Largest R&D site However: Not sufficiently connected to a life sciences ecosystem No open innovation model Single occupier site * Employee numbers H1 2012. 3,300 people employed

5. Parklands and Radnor Mere Plus a beautiful and inspiring landscape

6. 6Set area descriptor | Sub level 1

7. Industry challenges over the last few years

9. The industry probability of success has continued to decline R&D | Innovative Medicines 2003-2007 2007-2011 64% 44% 22% 65% 3.9% 69% 54% 34% 70% 8.1% Source: KMR Group Pharmaceutical benchmarking Forum 2008 - 2010 Pharmaceutical Benchmarking Forum 2012 Pre-clinical Phase I Phase II Phase IIIRegistration 83% 91% NME Success Rates By Phase And Overall Average cycle times (yrs) 13.62009-2011 4.7 1.7 2.9 2.7 1.6

10. R&D environment is increasingly challenging 1972 2010 Efficacious Safe Efficacious Differentiated Safe Efficacious Differentiated Reimbursable R&D | Innovative Medicines

11. ...and very significant challenges Declining returns and increasing risk in R&D Rising regulatory and payer requirements Few “easy” targets; declining success rates Longer cycle times and shorter patent lives Growing demand for innovative medicines Growing and ageing population Increasingly affluent emerging markets Technological advances Pressure on drug prices and market access Payers restricting prices and access Increased generic use and substitution Shifting geographic mix, to lower priced markets Financial and credit crisis National austerity measures Slowing economic growth Declining investor confidence

12. Pharma response: AZ

13. We have focused our R&D activities on three core areas Neuroscience Infection & vaccines CV- metabolism Respiratory, inflammation & autoimmunity Oncology Core therapy areas Opportunity-focused Heart disease 17 million deaths every year Cancer 7 million lives lost every year Diabetes 350 million people affected today Asthma 235 million sufferers today 13

14. The 5R framework: driving quality, not quantity Benefits Increasing our focus on key projects and competitive position Increasing the odds of pipeline to deliver Removing low value projects early Staffing projects to be competitive Freeing resources to innovate and re-invest in business priorities Right target Right safety Right patients Right commercial Right tissue/ Right exposure 14

15. We are an active collaborator with academia and industry

16. Current Pharma R&D landscape defined by various factors Players more focused to achieve breakthroughs Scientific leadership and the ability to access this internally and more than ever externally Strong regulatory involvement and hurdles Open innovation and collaboration Efficient management of work programmes with other collaborators and large external players Increased impact of payers and need to justify value

17. Alderley Park - A world class life science facility - an exciting opportunity within the new Pharma landscape...