WEBVTT - Astrazeneca CEO Pascal Claude Roland Soriot Talks China Compliance In Wake of Staff Detentions 0:00:02.360 --> 0:00:06.680 Bloomberg Audio Studios, podcasts, radio news. 0:00:06.800 --> 0:00:10.560 Welcome back everyone. Now. AstraZeneca recently became the first British 0:00:10.560 --> 0:00:12.879 company to reach a market value of more than two 0:00:12.960 --> 0:00:16.159 hundred billion dollars or actually two hundred billion pounds, with 0:00:16.239 --> 0:00:19.000 a big bed on cancer drugs, helping to drive a 0:00:19.079 --> 0:00:22.160 rally in the pharma giant. Now shares lower today after 0:00:22.200 --> 0:00:25.760 a lung cancer drug it's developing with partner showed mixed 0:00:25.800 --> 0:00:27.880 results in a late stage trial. Now joining us for 0:00:27.880 --> 0:00:31.480 an exclusive conversation on that, but also much more. Ascal Soio, 0:00:31.760 --> 0:00:35.279 the chief executive of Astrazenica, Pascal Stolio, as always, thank 0:00:35.280 --> 0:00:37.280 you so much for giving us a little bit of 0:00:37.320 --> 0:00:41.560 your busy schedule. Now, you published some disappointing results overnight 0:00:41.760 --> 0:00:45.440 in this late stage trial of lung Trunker, which you 0:00:45.440 --> 0:00:48.280 could still develop in the future. But are you worried 0:00:48.320 --> 0:00:49.720 that this will affect your numbers? 0:00:51.400 --> 0:00:52.360 Good morning, consent. 0:00:53.240 --> 0:00:57.080 It won't affect our numbers because actually, first of about 0:00:57.120 --> 0:00:59.320 the study, I think it's important to remember it was 0:00:59.360 --> 0:01:04.040 a second studying, second third line meta studying lund cancer. 0:01:04.760 --> 0:01:08.960 That study is actually positive and in the group of 0:01:09.000 --> 0:01:12.920 patients where we're looking together, a coward so called non squaremas. 0:01:13.880 --> 0:01:16.280 We delivered a two months improvement. 0:01:15.959 --> 0:01:20.759 In of all survival versus a very active standard treatment 0:01:20.840 --> 0:01:23.920 Taxo teal, which hasn't been betted by bidden by any 0:01:23.920 --> 0:01:26.640 other therapy for the last twenty years or so. 0:01:26.640 --> 0:01:28.040 So a very strong set. 0:01:27.880 --> 0:01:31.759 Of results, not as perfect as we would have liked, 0:01:31.800 --> 0:01:35.160 and of course as a result, people are questioning what 0:01:35.240 --> 0:01:38.679 kind of a power we will get. We're always looking 0:01:38.720 --> 0:01:44.759 at targeting patients who will benefit the most, delivered better 0:01:45.080 --> 0:01:49.400 for his benefits, so we've also been developing an AI 0:01:49.560 --> 0:01:53.440 based test that will enable us to treat the patients 0:01:53.480 --> 0:01:56.600 who will deliver the most benefit, the so called drop 0:01:56.640 --> 0:01:58.160 two positive patients. 0:01:58.200 --> 0:01:59.320 We have a receptor on their. 0:02:00.160 --> 0:02:02.200 So with this we believe that we have a way 0:02:02.240 --> 0:02:06.200 forward and should really not affect our numbers in a 0:02:06.280 --> 0:02:07.200 long term. 0:02:08.320 --> 0:02:11.120 So you still have this ambition of reaching eighty billion 0:02:11.160 --> 0:02:14.399 dollars actually in sales by twenty thirty. Do you think 0:02:14.440 --> 0:02:17.160 you'll get approval of some kind of other approval for 0:02:17.240 --> 0:02:17.720 this drug. 0:02:18.600 --> 0:02:20.520 Yeah, I think we will get an approval. 0:02:20.560 --> 0:02:22.679 The question that people are debating is what kind of 0:02:22.720 --> 0:02:25.639 approval we get initially. In second line, I think it's 0:02:25.639 --> 0:02:28.640 important to remember that the vast majority of the potential 0:02:28.639 --> 0:02:32.440 of this medicine is in the first line metasthetic lung cancer, 0:02:32.600 --> 0:02:36.120 which we are developing right now. We have several studies 0:02:36.560 --> 0:02:40.040 and we have really good hope and good reason to 0:02:40.040 --> 0:02:43.440 believe those studies will be positive. We also have presented 0:02:43.720 --> 0:02:47.399 the World Long Congress a study called neo Course which 0:02:47.440 --> 0:02:51.959 is in earlier lines. Again that was very encouraging, very positive. 0:02:52.400 --> 0:02:54.920 So the big potential is in the earlier lines of 0:02:54.960 --> 0:02:58.080 treatment and that is going very well, So that is 0:02:58.160 --> 0:03:02.359 not affecting our confidence in the drug. And beyond this rug, 0:03:02.400 --> 0:03:03.320 we have many other of. 0:03:03.560 --> 0:03:07.280 Course, Vesca, you're one of the industry leaders, of course 0:03:07.320 --> 0:03:11.480 in oncology, but also cardiovascular and respiratory. What other areas 0:03:11.480 --> 0:03:14.040 do you earmark for growth and do you have the 0:03:14.080 --> 0:03:16.840 internal capabilities of doing it alone or are you targeting 0:03:16.919 --> 0:03:18.600 M and A. 0:03:18.600 --> 0:03:21.200 Actually we can do it alone and our focuses can 0:03:21.240 --> 0:03:24.040 sell of course, as we just talked about, and in cancer, 0:03:24.080 --> 0:03:26.640 we are developing a whole range of products on tibioty 0:03:26.680 --> 0:03:31.880 drug conjugates by specific imminotherapies, and importantly we're also working 0:03:31.960 --> 0:03:35.160 very hard on cell therapy, and cell therapy is opening 0:03:35.200 --> 0:03:39.080 the potential to cure some cancers. We're also working on 0:03:39.160 --> 0:03:41.720 technologies that he set engages, so a whole range of 0:03:42.160 --> 0:03:44.000 new technologies that will improve the. 0:03:44.400 --> 0:03:45.360 Treatment of cancer. 0:03:45.960 --> 0:03:50.640 Outside of cancer, we're working on cardiovascular disease metabolism. We 0:03:50.720 --> 0:03:54.680 have a whole range of products to treat obesity and 0:03:54.800 --> 0:03:59.720 metabolic diseases. And then we're also working on respiratory iminology 0:03:59.760 --> 0:04:02.640 and anually on were diseases. So you can see that 0:04:02.760 --> 0:04:07.080 a whole portfolio goes much beyond data or the product 0:04:07.120 --> 0:04:08.680 we are just talking about a minute ago. 0:04:10.760 --> 0:04:12.280 There have been a lot of questions, of course about 0:04:12.280 --> 0:04:15.440 your side in Liverpool. Has the government reduced state aid 0:04:15.520 --> 0:04:16.880 available for this investment. 0:04:17.920 --> 0:04:19.760 We are still in discussion with the government. 0:04:19.960 --> 0:04:24.320 We are committed to this investment, but of course you 0:04:24.360 --> 0:04:26.599 know we have to wait for the final conclusion of 0:04:26.640 --> 0:04:27.360 this discussion. 0:04:27.640 --> 0:04:29.240 I can't say much more at this point. 0:04:29.920 --> 0:04:32.120 It is an important investment for us in the UK, 0:04:32.240 --> 0:04:37.640 of course, an important investment for pandemic preparedness, but you know, 0:04:37.640 --> 0:04:39.400 I can't say much more at this point. 0:04:41.200 --> 0:04:44.040 Is the UK lacking incentives for manufacturing and R and 0:04:44.120 --> 0:04:47.160 D investments in general, or is this also something that's 0:04:47.200 --> 0:04:48.080 under negotiation. 0:04:48.920 --> 0:04:51.960 I think the government has really been making quite a 0:04:52.040 --> 0:04:57.000 number of efforts to attract investment in manufacturing. The bigger 0:04:57.080 --> 0:05:00.479 issue in the UK, quite frankly, is access to since 0:05:00.760 --> 0:05:04.719 pharmaceutical companies want to invest in research and development in 0:05:04.839 --> 0:05:08.400 countries where they believe their medicines will be able to 0:05:08.480 --> 0:05:11.840 add patients, so they will be reimbursed and. 0:05:12.080 --> 0:05:13.440 Patients will be able to benefit. 0:05:13.880 --> 0:05:17.440 And in the recent past access and reinvestment has become 0:05:17.480 --> 0:05:19.920 more and more difficult, not only for US, but for 0:05:20.080 --> 0:05:23.800 other medicines as well, and that's probably the biggest disincentive 0:05:23.920 --> 0:05:28.040 to a pharmaceutical company to commit and invest in the UK. 0:05:30.800 --> 0:05:34.880 Several Astrozenic employees have also been detained in China relation 0:05:34.960 --> 0:05:38.560 to two probes. Are you aware of Astrozeneca actually breaking 0:05:38.600 --> 0:05:41.680 any laws in relation to those investigations. 0:05:42.360 --> 0:05:45.160 Yeah, it's something with a very seriously of course. 0:05:45.520 --> 0:05:48.600 It's important though to remember the context of it. It's 0:05:48.640 --> 0:05:53.920 a small number eight nine employees that are affected by 0:05:53.960 --> 0:05:59.640 this investigation. We have twelve thousand field based employees in 0:05:59.640 --> 0:06:02.440 the in China. It's a big country, as we all know. 0:06:02.960 --> 0:06:06.440 We are the largest pharmastical company in China. We have 0:06:06.839 --> 0:06:10.359 sixteen almost seventeen thousand employees twelve thousand in the field, 0:06:10.839 --> 0:06:13.320 so we are looking at a smaller number of people. 0:06:13.839 --> 0:06:18.040 We have found policies complaints for we see with twin people, 0:06:18.160 --> 0:06:21.479 we of course investigate, but it's impossible to have a 0:06:21.680 --> 0:06:24.640 complaints offica being each and every one of our field 0:06:24.640 --> 0:06:25.800 based employee. 0:06:26.120 --> 0:06:28.479 So we are working very closely with the authorities. 0:06:28.520 --> 0:06:31.479 And I think actually what the government is doing is 0:06:31.520 --> 0:06:34.440 not affecting us on it, it's affecting all the companies 0:06:34.920 --> 0:06:37.080 and it's a good thing because we need to really 0:06:37.120 --> 0:06:40.240 make sure that we can operate in a very compliant 0:06:40.360 --> 0:06:42.760 environment in the in in China like. 0:06:43.160 --> 0:06:44.080 Warehouse in the world. 0:06:45.839 --> 0:06:47.920 What are some of the key threads for us Zenneka 0:06:47.960 --> 0:06:50.240 in relation to doing business in China and how can 0:06:50.279 --> 0:06:52.760 you actually mitigate some of those risks. 0:06:53.279 --> 0:06:56.280 Yeah, of course we're all aware of the geopolitical tensions 0:06:56.320 --> 0:06:59.359 between the US and China and particular, so what we 0:06:59.480 --> 0:07:03.720 have been doing, of course follow the laws and regulations 0:07:03.839 --> 0:07:06.920 in the US, in China everywhere, but also we've been 0:07:06.960 --> 0:07:09.880 building our supply Chine in China, so we can supply 0:07:10.600 --> 0:07:16.240 China from China and also supply some emerging markets from China. 0:07:16.880 --> 0:07:20.920 So we have several new investments, manufacturing investments in China 0:07:21.320 --> 0:07:24.280 for many of our new medicines, and in parallel to this, 0:07:24.360 --> 0:07:30.800 we're investing in the US. Recently, we invested in a 0:07:30.840 --> 0:07:36.760 cell serrupy manufacturing plant in the US in Maryland. So 0:07:36.800 --> 0:07:39.520 you can see we're building two supply chains that are 0:07:39.920 --> 0:07:42.520 going to be independent from each other and enabling us 0:07:42.520 --> 0:07:45.760 to supply China on the one hand, in the Western 0:07:45.800 --> 0:07:46.800 world on the other hand. 0:07:48.560 --> 0:07:51.520 Would you ever actually consider spinning off the business in China. 0:07:52.760 --> 0:07:55.480 No, I mean it's a very important part of our company. 0:07:55.880 --> 0:07:57.720 First of all, there are lots of patients who need 0:07:57.720 --> 0:08:00.800 our medicines in China. But also importantly the last three 0:08:00.840 --> 0:08:04.080 four five years, China has become a very important part 0:08:04.120 --> 0:08:07.280 of global innovation in our industry. There are lots of 0:08:07.680 --> 0:08:11.000 new medicines that are invented in China that we can 0:08:11.280 --> 0:08:15.800 licenseing or co develop with Chinese companies that will benefit 0:08:16.200 --> 0:08:20.200 people around the world. So we believe that China will 0:08:20.240 --> 0:08:22.600 remain an important part of our company, not only because 0:08:22.640 --> 0:08:25.920 we sell there, but also because we manufacture export and 0:08:26.000 --> 0:08:29.640 also can source innovation from China that will benefit the 0:08:29.800 --> 0:08:30.400 entire world. 0:08:32.200 --> 0:08:34.040 You mentioned the US, What do you need from the 0:08:34.040 --> 0:08:36.520 next president of the United States of America when it 0:08:36.520 --> 0:08:37.880 comes to healthcare. 0:08:38.160 --> 0:08:41.640 Yes, I was listening to Grace Peters, who was with 0:08:41.800 --> 0:08:44.840 you a few minutes ago, and she was talking about policy. Essentially, 0:08:44.880 --> 0:08:48.960 we need policies that will support innovation in our sector, 0:08:49.120 --> 0:08:55.040 innovation in biomedicines, innovation in research and development. The US 0:08:55.880 --> 0:08:58.959 has been the country that has been driving innovation in 0:08:59.000 --> 0:09:02.319 our industry censors for many years, and I believe will 0:09:02.400 --> 0:09:05.000 remain so for a long time to come. China is 0:09:05.040 --> 0:09:10.000 the other big driver of innovation. Unfortunately Europe has been 0:09:10.040 --> 0:09:13.640 falling behind. So what we need is continued investment in 0:09:13.720 --> 0:09:20.320 basic research. We need a continued investment in biotech, in 0:09:20.400 --> 0:09:25.640 startups through private investment that is of course incentivized to 0:09:25.760 --> 0:09:29.760 invest in those emerging companies. And finally, we need, of 0:09:29.760 --> 0:09:34.360 course access for medicines, so that is really a key 0:09:34.440 --> 0:09:39.040 part of incentivizing pharmaceutical companies make sure that their medicines 0:09:39.200 --> 0:09:40.480 can actually help patients. 0:09:42.520 --> 0:09:44.280 I mean, looking at your share price, where does the 0:09:44.320 --> 0:09:46.319 market most under estimate Astrasenca. 0:09:47.320 --> 0:09:49.960 I think the market under estimates the strength of our 0:09:50.000 --> 0:09:53.400 portfolio and the growth we can deliver over the next. 0:09:53.240 --> 0:09:54.719 Number of years. 0:09:54.760 --> 0:09:59.320 You know, the pharmaceutical industry is not a very simple 0:09:59.400 --> 0:10:03.160 endeavor we all know, and it's not for the faint hearted. 0:10:03.240 --> 0:10:04.600 And you never will have. 0:10:04.600 --> 0:10:08.520 A linear development. You have ups and downs, and that's 0:10:08.559 --> 0:10:11.480 what we've had in the last ten twelve years. But 0:10:11.760 --> 0:10:14.160 in general we are moving in the right direction. We 0:10:14.200 --> 0:10:18.560 have a verse from portfolio and people are underestimating several 0:10:18.600 --> 0:10:21.880 of the products we have in the portfolio and reacting to, 0:10:23.800 --> 0:10:27.040 you know, events that happened on the day as opposed 0:10:27.080 --> 0:10:30.520 to sometimes looking at the long trend, our long term shoulders. 0:10:31.679 --> 0:10:34.360 You know, they of course look at those events, but 0:10:34.440 --> 0:10:36.960 they keep their eye on the long term, which is, 0:10:37.280 --> 0:10:39.560 you know, where we can be in twenty thirty and beyond, 0:10:39.960 --> 0:10:43.360 and that is clearly a good place because we have 0:10:43.679 --> 0:10:45.839 good development plans and will continue going. 0:10:47.280 --> 0:10:50.000 So, given the setback with Taichi Sankyo, what are you 0:10:50.080 --> 0:10:52.680 most excited about what's coming up in the pipeline? 0:10:53.120 --> 0:10:56.200 Well, I should say that remains a very important product 0:10:56.280 --> 0:10:59.880 for us. It's a setback in time if if if 0:11:00.240 --> 0:11:01.920 it's a setback, I mean, we'll have to see what 0:11:01.960 --> 0:11:05.440 the header decides. But even if we had a more 0:11:05.480 --> 0:11:10.040 limited approval than we're looking for, you know, we don't 0:11:10.040 --> 0:11:11.600 know what we will get. We have to wait for 0:11:11.640 --> 0:11:15.000 the DA but it's a timing issue because these new 0:11:15.040 --> 0:11:18.600 tests we have developed will enable us to expand our 0:11:18.640 --> 0:11:21.400 presents and are using second third line and then we 0:11:21.440 --> 0:11:23.240 have the studies in the first line, and then we 0:11:23.800 --> 0:11:27.040 thanks to this test, we'll go into other indications potentially 0:11:27.920 --> 0:11:30.439 rest of course, but also many others, so that all 0:11:30.480 --> 0:11:35.040 remains an important portfolio about product. Our portfolio antibody drug 0:11:35.080 --> 0:11:38.680 conjugates is very exciting. Our best specifics in oncology are 0:11:39.440 --> 0:11:44.120 very exciting. Our portfolio products in obesity and cardio metabolism 0:11:44.400 --> 0:11:45.600 is also very exciting. 0:11:46.320 --> 0:11:46.800 Sensor up. 0:11:46.920 --> 0:11:51.560 The overall both in oncology and immunology is very exciting. 0:11:51.640 --> 0:11:55.760 So there's a lot of products that really are going 0:11:55.800 --> 0:11:58.239 to change the future of medicine and drive out walls. 0:12:00.080 --> 0:12:01.599 Thank you so much for your time today. That was 0:12:01.600 --> 0:12:04.720 Pascal sol Hio, of course, the chief executive of Astrozenega.