AstraZeneca
Annual Report and Form 20-F Information 2025
We
follow the
science
and put
patients
first
Supplements
Detailed information on our Development
Pipeline, Patent Expiries of Key Marketed
Products and Risk.
See our website,
www.astrazeneca.com/annualreport2025.
Trade marks
Brand names shown in italics are trade
marks owned by or licensed to the Group.
What
science
can do
We are a global, science-led, patient-
focused pharmaceutical business.
We are committed to excellence
in the research, development and
commercialisation of prescription
medicines. We aim to transform the
lives of patients with improved
outcomes and a better quality of life.
Front cover image:
Our Values include following the science and putting
patients first. They help us achieve our Purpose of
pushing the boundaries of science to deliver life-
changing medicines. For more information, see page 8.
Use of terms:
In this Annual Report, unless the context otherwise
requires, ‘AstraZeneca’, ‘the Group’, ‘we’, ‘us’ and ‘our’
refer to AstraZeneca PLC and its consolidated entities.
Welcome
Contents
Key
For more information within
this Annual Report.
For more information,
see www.astrazeneca.com.
Total Revenue
1
Up 9% at actual rate of exchange to $58,739
million (up 8% at CER), comprising Product
Sales of $55,573 million (up 9%; 9% at CER),
Alliance Revenue of $3,067 million (up 39%;
38% at CER) and Collaboration Revenue of
$99 million (down 89%; 89% at CER)
Net cash inflow from operating activities
Up 23% at actual rate of exchange to
$14,575 million
$58,739m
$54,073m
$45,811m
2025
2024
2023
$58.7bn
$58.7bn
$14,575m
$11,861m
$10,345m
2025
2024
2023
$14.6bn
$14.6bn
Reported Operating profit
Up 37% at actual rate of exchange
to $13,743 million (up 36% at CER)
Core Operating profit
Up 9% at actual rate of exchange
to $18,478 million (up 9% at CER)
$13.7bn
$13.7bn
$13,743m
$10,003m
$8,193m
2025
2024
2023
$18.5bn
$18.5bn
$18,478m
$16,928m
$14,534m
2025
2024
2023
Reported EPS
Up 45% at actual rate of exchange
to $6.60 (up 43% at CER)
Core EPS
Up 12% at actual rate of exchange
to $9.16 (up 11% at CER)
$6.60
$6.60
$6.60
$4.54
$3.84
2025
2024
2023
$9.16
$9.16
$9.16
$8.21
$7.26
2025
2024
2023
1
As detailed from page 129, Total Revenue consists of Product Sales, Alliance Revenue and Collaboration Revenue.
Denotes a scale break. Throughout
this Annual Report, 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.
For more information in relation
to the inclusion of Reported
performance, Core financial
measures and constant exchange
rate (CER) growth rates as used
in this Annual Report, see the
Financial Review from page 50
and for more information on the
reconciliation between Reported
and Core performance, see the
Reconciliation of Reported results
to Core results in the Financial
Review on page 55.
Financial highlights
Strategic Report
AstraZeneca at a Glance
2
Chair’s Statement
3
Chief Executive Officer’s Review
4
Healthcare in a Changing World
6
Our Purpose, Values and Business Model
8
Our Strategy and Key Performance Indicators
10
Therapy Area Review
12
Business Review
26
Section 172(1) Statement
46
Viability Statement
46
Risk Overview
47
Financial Review
50
Corporate Governance
Chair’s Introduction
66
Corporate Governance Overview
67
Board of Directors
68
Senior Executive Team (SET)
70
Corporate Governance Report
71
Nomination and Governance Committee Report
79
Science Committee Report
81
Sustainability Committee Report
82
Audit Committee Report
83
Directors’ Remuneration Report
90
Financial Statements
Preparation of the Financial Statements
and Directors’ Responsibilities
115
Directors’ Annual Report on Internal Controls over Financial
Reporting
115
Independent Auditors’ Report
116
Consolidated Statements
125
Group Accounting Policies
129
Notes to the Group Financial Statements
137
Group Subsidiaries and Holdings
192
Company Statements
197
Company Accounting Policies
199
Notes to the Company Financial Statements
201
Sustainability Statement
General disclosures
205
Topical disclosures
211
Environmental disclosures
211
Social disclosures
217
Governance disclosures
219
Independent Sustainability Assurance Report
220
Additional Information
Shareholder information
223
Directors’ Report
224
Glossary
227
Cautionary statement regarding forward-looking
statements
228
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Annual Report & Form 20-F Information 2025
Corporate Governance
Sustainability Statement
Additional Information
Financial Statements
Strategic Report
Contents
Our purpose
We push the boundaries of science to deliver
life-changing medicines.
Our strategic priorities
Our priorities reflect how we are
working to deliver our Growth
Through Innovation strategy.
1. Science and
Innovation
2. Growth and
Therapy Area
Leadership
3. People and
Sustainability
Science and innovation-led
We invest in new technologies
and modalities to deliver the next
wave of pipeline innovation and
life-changing medicines.
197
projects in our
development
pipeline
1
20
new molecular
entities (NMEs)
in our late-stage
pipeline
125
NME or major life-
cycle management
(LCM) projects
in Phase II and
Phase III
$14.2bn
invested in
our science
1
Includes NME and major LCM projects up to launch in all applicable markets.
Leading in our therapy areas
We focus on areas where we
can transform patient outcomes
through novel medicines and
combinations.
For more information on our
therapy areas, see page 12.
Oncology
Leading a revolution to transform cancer care.
BioPharmaceuticals
Transforming care for billions of people
living with chronic diseases and delivering
long-lasting immunity.
Rare Disease
Pioneering new possibilities for the
rare disease community.
Total Revenue by therapy area
2
2
Due to rounding, the sum of subtotals and percentages
may not agree to totals.
Diversified portfolio and
global reach
We deliver a diversified portfolio
of medicines across primary
care, specialty care and rare
diseases through our broad-
based global network.
Total Revenue growth by reporting region
3
10%
12%
5%
5%
US
Emerging Markets
Europe
Established RoW
3
Actual growth percentage.
Total Revenue by reporting region
4
4
See page 32 for how we define our regions.
Positively impacting the
health of people, society
and the planet
We operate responsibly,
harnessing the power of science
and innovation, and our global
reach, to help build a healthier,
more sustainable future.
320 million
people have been
positively impacted
5
5
See page 218
for methodology
and definitions.
88.1%
reduction in
Scope 1 and 2
GHG emissions
since 2015
$
1.0bn, 2%
Other Medicines
$25.6bn, 44
%
Oncology
$23.0bn, 39%
BioPharmaceuticals
$
9.1bn, 16%
Rare Disease
$25.5bn, 43%
US
$5.2bn, 9%
Established
Rest of World
$15.3bn, 26%
Emerging Markets
$12.7bn, 22%
Europe
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Annual Report & Form 20-F Information 2025
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Additional Information
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Strategic Report
AstraZeneca at a Glance
AstraZeneca at a Glance
We are dedicated to transforming the future of healthcare
by unlocking the power of what science can do for people,
society and the planet.
$3.20
Full-year dividend of $3.20
per share (2024: $3.10)
“We have more than 100 Phase III studies ongoing,
including a substantial and growing number of
trials of our transformative technologies which
have the potential to revolutionise outcomes for
patients and drive our growth well beyond 2030.”
Global opportunities and challenges
The world continues to be in flux. Geopolitical
shifts, crises, and conflict intersect with
economic, demographic, societal,
environmental, and technological change –
reshaping the context in which companies
operate. While no business can predict every
shock, active risk management strengthens
our capacity to absorb disruption and adapt,
enabling us to execute our strategy, drive
innovation, grow, and reach more patients.
At the same time, we face a more economically
diverse landscape as economic power
evolves, including the rise of emerging,
populous markets. Governments are also
prioritising strategic autonomy for security,
resilience, and competitiveness, with
pressure to build climate-resilient supply
chains. These interlinked trends bring risks
to manage and significant opportunities for
innovation, partnerships, and sustainable
growth. Our industry-leading role in
negotiating an agreement with the US
administration to lower the cost of medicines
for American patients illustrates our agility
in responding to the changes we are seeing.
A shared drive for innovation
The pace of scientific progress today
is nothing short of extraordinary, with
transformative new technologies and
modalities redefining what is possible
for patients. Yet, these advances are
not reaching everyone equally. Across
continents, access to life-changing
treatments remains inconsistent. For
example, over the past five years, about
40% of medicines launched in the US did
not launch in key European countries,
whereas only 7% of medicines launched
in Europe did not reach the US.
To harness the promise of this scientific
golden age, we need to adapt and rethink
how we value health. Treating it as a strategic
investment – rather than a budgetary expense
– can unlock immense economic and
societal benefits. For example, an additional
$3 per person each year to tackle chronic
diseases could yield economic benefits
of up to $1 trillion by 2030.
However, the responsibility for driving
innovation must be shared. A more balanced,
global approach to funding and risk-sharing
is essential. We need policymakers to
modernise regulations, foster public-private
partnerships, and prioritise health as a pillar
of national strength and sovereignty. By
aligning policy and investment with scientific
readiness, we can deliver longer, healthier
lives and a more resilient global economy.
A dedicated team
As reflected throughout this Annual Report,
2025 was a year of exceptional progress for
AstraZeneca, delivering impact for people,
society, and the planet. On behalf of the
Board, I extend our gratitude to Pascal, the
Senior Executive Team, and every colleague
whose work made these results possible.
Outlook
As we look ahead, we have more than
100 Phase III studies ongoing, including
a substantial and growing number of trials
of our transformative technologies which
have the potential to revolutionise outcomes
for patients and drive our growth well
beyond 2030.
Michel Demaré
Chair
Those achievements start with our continued
strong commercial performance in 2025,
with Total Revenue up 9% (8% at CER).
Reported EPS was up 45% (43% at CER)
and Core EPS, which excludes certain items,
was up 12% (11% at CER). The Board has
declared a second interim dividend of
$2.17 per share (159.5 pence, 19.49 SEK).
Total dividend declared for 2025 increased
by 3% to $3.20 per share.
A global company
Our financial performance reflects the depth
and breadth of our portfolio and pipeline of
life-changing medicines. It also reflects our
leading global presence and footprint.
In November 2025, our plans to deliver
a global listing for global investors were
overwhelmingly approved by shareholders
at the General Meeting with a vote of 99.36%
in favour. From 2 February 2026 shareholders
have been able to trade their interests in
AstraZeneca Ordinary Shares across all
three exchanges in New York, London and
Stockholm. This harmonised listing structure
will help us reach a broader mix of global
investors, making it more attractive for all
shareholders to participate in our future and
giving us flexibility to access the widest
pool of capital.
AstraZeneca’s many scientific
and commercial achievements
in 2025 were underpinned
by our continuous adaptation
to a rapidly changing external
environment.
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Chair’s Statement
Chair’s Statement
97
Regulatory events – submissions
or approvals in major markets
$58.7bn
Total Revenue (2024: $54.1bn)
“In addition to delivering medicines today,
we are following the science to deliver
medicines for tomorrow and the day after.”
and Established Rest of World up 5%
(5% at CER). Our performance in Emerging
Markets outside China (up 19%, 22% at CER)
was particularly impressive, demonstrating
the strength of our global footprint.
AstraZeneca’s momentum is continuing
in 2026 and we are looking forward to
the results of more than 20 Phase III trial
readouts during the year.
Changing lives
At the heart of AstraZeneca is our delivery
of innovative medicines that change lives.
Following the approval of
Datroway
and
Kavigale
at the start of the year, the approval
of
Beyonttra
in March for transthyretin
amyloid cardiomyopathy (ATTR-CM) in
Japan, represented the ninth new medicine
against our ambition to deliver 20 by 2030.
During 2025, we also achieved 12 first
approvals for life-cycle management projects.
Our global reach means we can set new
standards for the accessibility of our medicines
and help more patients. For example, in 2025
we received six world-first approvals for our
medicines in emerging markets –
Datroway
,
Tezspire
and
Imfinzi
with new indications,
Saphnelo
for a line extension, and a first
approval, for camizestrant, in the UAE.
Transforming healthcare
There are other ways in which we are
helping patients. Our ‘Transform Care’
initiative accelerated the adoption of clinical
guideline-based therapy even further during
2025, enabling millions more patients
to receive innovative medicines. By the end
of the year, we had established more than
200 health system partnerships across
50 countries. We are finding and treating
high-risk patients, accelerating the time
to diagnosis and treatment, and improving
outcomes for millions of people, all the
while helping healthcare systems to
become more resilient.
Operational excellence
Our medicines can only help patients if they
are in their hands when they are needed.
In 2025, we maintained an impressive track
record with 217 on-time launches, more than
99% supply performance, zero patient level
recalls and zero critical observations from
42 external inspections.
Investing to deliver our medicines
We are also investing to support our growth
ambitions and ensure we can continue to
deliver our medicines, especially in markets
where healthcare is seen as a strategic
priority and there is funding for innovation.
US agreement
The US remains our largest market and is
projected to represent approximately 50%
of our Total Revenue by 2030. During 2025,
we took action to strengthen our position
and secure our long-term growth there.
In October, we announced an agreement with
the US administration which provides greater
clarity around pricing and a three-year
exemption from tariffs. The agreement
will lower the cost of many prescription
medicines in America while safeguarding
its pharmaceutical innovation.
Expanding globally
In the US, we plan to invest $50 billion
in manufacturing and R&D, including our
$4.5 billion facility in Virginia – our largest
single manufacturing investment where we
broke ground in October. We followed this
with plans to invest $2 billion to expand our
manufacturing footprint in Maryland.
This includes expansion of our biologics
manufacturing facility in Frederick and
construction of a new state-of-the-art facility
in Gaithersburg. In October, we also opened
our newly expanded manufacturing facility
in Coppell, Texas.
It was a year that saw sustained momentum
with Total Revenue increasing by 9% (8%
at CER) to $58.7 billion while Product
Revenue was up 10% (10% at CER), reflecting
broad-based growth across all therapy areas
and major regions. We also saw excellent
pipeline delivery in a continuing catalyst-rich
period, with 16 positive Phase III clinical
trial readouts.
Beyond delivering on our pipeline, 2025 was
significant for other reasons: we announced
our largest investment plans ever; partnered
with governments and key stakeholders
across the world to strengthen healthcare
ecosystems; and took centre stage at many
major congresses, demonstrating leadership
across all our therapy areas.
Diverse and resilient
Our strong financial performance reflects
our diverse portfolio and our geographic
breadth. In our therapy areas, Total Revenue
for Oncology increased 15% (14% at CER)
to $25.6 billion and Rare Disease delivered
growth of 4% (4% at CER) to $9.1 billion.
Overall, BioPharmaceuticals Total Revenue
grew by 5% (5% at CER) to $23.0 billion,
with Cardiovascular, Renal & Metabolism
growing by 3% (2% at CER) and Respiratory
& Immunology by 13% (12% at CER).
Vaccines & Immune Therapies decreased
by 13% (14% at CER). We now have 16
blockbuster medicines that each generate
more than $1 billion in annual sales.
Across our regions, we saw balanced
growth with Product Revenue in the US
up 10%, Europe up 11% (7% at CER),
Emerging Markets up 12% (14% at CER)
2025 was exceptional as we
advanced science and delivered
innovation that benefited
people, society, and the planet.
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Chief Executive Officer’s Review
BioPharmaceuticals
In BioPharmaceuticals, baxdrostat has
the potential to be a best and first-in-class
medicine that would have a very real impact
for the hundreds of millions of people
worldwide living with hard-to-control
hypertension. We acquired baxdrostat from
CinCor in 2023 and advanced it from Phase
II to delivery of Phase III data and filing
by the end of 2025. Phase III trials showed
statistically significant and clinically meaningful
blood pressure reductions and baxdrostat
represents one of the most significant
innovations in the hypertension field in
over two decades.
Rare Disease
In Rare Disease, positive results from the
global PREVAIL Phase III trial showed that
gefurulimab met its primary and all secondary
endpoints, demonstrating a statistically
significant and clinically meaningful
improvement from baseline in Myasthenia
Gravis Activities of Daily Living (MG-ADL)
total score at week 26 compared to placebo.
Findings from the trial offer valuable insights
into how early and sustained complement
inhibition with gefurulimab may translate
into meaningful, functional improvement
for people living with gMG. A once-weekly
self-administered treatment option would
advance greater convenience and
independence for patients in managing their
condition, as well as strengthening our
scientific leadership in complement inhibition.
Following the science
While we had remarkable success in 2025,
pushing boundaries sometimes means
setbacks. For example, we did not achieve
the primary endpoints in the Phase III
RESOLUTE trial for
Fasenra
in COPD and
the LATIFY trial of ceralasertib plus
Imfinzi
in previously treated advanced NSCLC.
True to our Values of following the science
and putting patients first, we learn from
every trial and share data with the wider
scientific community.
Overall, our vision extends well beyond our
ambitions for 2030, and we are investing
significantly in transformative technologies
that will shape the future of medicine and
sustain our growth into the next decade.
This includes harnessing the power of AI
where, for example, 90% of our small
molecule discovery pipeline is already
AI-assisted, potentially improving the
probability of clinical success.
Delivering in the right way
At AstraZeneca, how we work is as important
to us as what we do. I was therefore proud
to introduce our refreshed sustainability
strategy in May. It focuses on how we make
a sustainable impact by acting on nature,
health equity and health systems resilience
and how we work by living our Values,
investing in our people and operating
responsibly, ethically and with robust
governance.
We are making good progress in these areas.
In 2025, we continued to deliver against
Ambition Zero Carbon, with a reduction
in Scope 1 and 2 greenhouse gas emissions
of 88.1% since 2015. We are now especially
focused on cutting Scope 3 emissions with
the aim of achieving science-based net zero
by 2045. On health equity, we have a 2030
ambition to positively impact one billion
people, including 400 million from underserved
communities. We have achieved our target
of 40.4% of genomics data coming from
understudied global communities, and,
so far, have reached more than 49 million
people since 2024 with health education,
screening and early detection.
Investing in people
None of our achievements would be
possible without the dedication and talent
of AstraZeneca colleagues worldwide.
I am proud that 86% of our people believe
AstraZeneca is a great place to work, and
we continue to make progress in creating
an inclusive environment where everyone
feels they belong.
We are embracing AI to accelerate our
progress and have set up a new AI unit to
reinforce our efforts. The uptake of AI tools
continues to grow and, in 2025, more than
50,000 employees participated in our
‘Thriving in the Age of AI’ programme.
These technologies are enabling us to
discover and deliver new treatments faster
than ever before and drive step-changes in
how we diagnose, monitor and treat patients
– as well as transform how we all work.
I would like to thank each of my colleagues
for the contributions they have made and
firmly believe we have the best team in the
industry. Together, we are on track to deliver
our Ambition 2030, addressing unmet medical
need, reshaping the future of healthcare and
changing lives around the world.
Pascal Soriot
Chief Executive Officer
Our efforts are not restricted to the US. In
March, we announced plans to establish a
new global strategic R&D centre in Beijing,
our second in China and sixth worldwide.
Our $2.5 billion investment expands early
discovery and development and
incorporates an AI and data science
laboratory. At the same time, agreements
with Harbour BioMed and Syneron Bio,
together with a pioneering Cambridge
Beijing ecosystem collaboration, aim to
accelerate our science and innovation.
Additionally, we are making good progress
with the construction of our $1.5 billion
antibody drug conjugate manufacturing
facility in Singapore and opened our new
global hub in Barcelona, as well as expanding
our manufacturing capabilities in China,
Sweden and the Netherlands.
Reshaping the future of healthcare
In addition to delivering medicines today,
we are following the science to deliver
medicines for tomorrow and the day after.
Oncology
We are proud of our science and the
American Society of Clinical Oncology
annual meeting provided a remarkable
moment in 2025, marking our seventh
consecutive year with a plenary session,
and the second consecutive year in which
we had two: SERENA-6 on camizestrant
for the treatment of 1st-line advanced
HR-positive breast cancer; and MATTERHORN
which showcased perioperative treatment
with
Imfinzi
in early gastric and
gastroesophageal junction cancers and for
which it was approved in the US by the FDA.
We also had back-to-back presidential
presentations for the DESTINY-Breast05
and DESTINY-Breast11 Phase III trials at
the European Society for Medical Oncology
Congress that demonstrated the transformative
potential of
Enhertu
in early HER2-positive
breast cancer – a setting where there
is a greater opportunity for cure. Together
with DESTINY-Breast09, SERENA-6 and
TROPION-Breast02 for
Datroway
, these
five studies demonstrate the difference we
are making for people with breast cancer
and illustrate our strategy to bring novel
treatments to early cancer settings where
patients can benefit most.
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The external environment presents both
challenges and opportunities that require
us to adapt, innovate and build trust.
A growing pharmaceutical sector
The pharmaceutical sector continues to grow against a backdrop
of increasing demand for healthcare. Global healthcare spending
is projected to increase at an annual rate of 7.1% from 2025 to 2029.
Healthcare in a Changing World
Global trends
Shifting economic power
Economic power is shifting from the G7 to
the largest emerging markets, such as China
and countries with large populations, including
India and Indonesia, altering global economic
dynamics and creating new opportunities
and challenges. For example, the G7 comprised
some 65% of global GDP in 2000 which
is expected to drop to less than one third
by 2050.
Global instability
Continuing geopolitical tensions and shifting
alliances are creating a more volatile global
landscape, impacting international relations
and stability. This includes the rise of
economic nationalism, sustained strategic
rivalry between the US and China, as well
as conflicts, such as the war in Ukraine,
and ‘grey zone’ conflict – the contested
arena between routine diplomacy and
open warfare.
Changing populations
The UN predicts the global population will
reach 9.7 billion by 2050. Key trends include
continued urbanisation, falling birth rates in
many countries, notably South Korea, Japan
and within Western Europe, and an ageing
population, with those aged 65 and older set
to triple by 2100. Furthermore, the ratio of
retirees to workers will rise dramatically as
the share of younger people declines, putting
structural pressure on pay-as-you-go pensions
and on health and long-term care financing.
Population growth is also becoming more
concentrated, with much of the growth
coming from Africa and South Asia.
<1/3
The G7’s share of global GDP fell from
roughly two thirds (~65%) in 2000
to about half today, and is projected
to shrink to less than one third by 2050.
(Source: Global Trade Outlook, February 2023)
9.7 billion
The UN predicts the global population
will reach about 9.7 billion by 2050.
(Source: United Nations)
10.0%
Global pharmaceutical sales
grew by 10.0% in 2025
(Source: IQVIA, IQVIA Midas Quantum Q3 2025)
These risks are explored
further in the Risk Overview
from page 47 and Accessible
and affordable healthcare
from page 41.
Against the background of broad structural trends, the pharmaceutical sector is navigating
economic challenges and political uncertainty as well as the impacts of social changes and
the climate crisis. Rapidly-advancing technologies offer both risks and benefits, while
successful organisations are building trust with stakeholders.
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Healthcare in a Changing World
Trend
Impact
Politics
Increasing
international
friction
Two thirds
More than two thirds
of respondents believe
we will face a world in
which middle and great
powers contest, set and
enforce regional rules
and norms.
(Source: World Economic Forum
Global Risk Report, January 2026)
The political climate has acute consequences for security, trade and global
collaboration. Some governments deliberately use economic ties, such
as access to critical minerals, to gain strategic leverage over others, thereby
increasing the risk of supply chain disruption. However, such trends also
present opportunities as companies are encouraged to localise operations
to mitigate supply chain risks.
As a consequence, AstraZeneca is investing in robust and flexible supply
chains and a strong global manufacturing footprint, see Operations
on page 33 of the Business Review.
Economics
Global economy
in flux
3.3%
Global GDP growth forecast
at 3.3% for 2026 and 3.2%
in 2027.
(Source: IMF, January 2026)
Global growth is projected to remain resilient at 3.3% in 2026 and at 3.2%
in 2027 – rates similar to the estimated 3.3% outturn in 2025. In addition,
healthcare budgets are under pressure which is leading to downward
pressure on pricing.
We work closely with payers and policymakers to deliver locally
affordable medicines. In 2025, we reached an agreement with the
US Government to lower the cost of medicines for US patients,
see Our regions from page 32 of the Business Review.
Society
Increasing
healthcare
demands
43 million
Non-communicable
diseases (NCDs) were
the cause of death for
43 million people in 2021.
(Source: WHO, September 2025)
Demographic change is driving an increased demand for healthcare
across all age groups. However, people in low- and middle-income
countries are disproportionately affected by NCDs, as 82% of NCD
deaths occur in these countries. In total, NCDs represent 75% of
non-pandemic-related deaths globally.
Through our health equity programme, we aim to close healthcare
gaps and to give people everywhere the chance to be as healthy
as possible, see Accessible and affordable healthcare on page 41
of the Business Review.
Technology
Changing the
way we work
$4-7 billion/
year
Generative AI is estimated
to unlock $4-7 billion
in value annually for
pharmaceutical companies.
(Source: McKinsey & Company,
January 2025)
Rapid advances in the field of AI and machine learning are enhancing
our ability to process and understand vast amounts of data.
AI will unlock value and bring new risks. Guided by our principles
of ethical and responsible data and AI use, new technologies enable
us to deliver better medicines and treatments, more quickly, to more
patients, see Digital technologies on page 36 of the Business Review.
Environment
Deep
interconnection
between climate
and health
53.2Gt
CO
2
emissions are at a
record high globally as
53.2 gigatonnes of CO
2
e
were emitted into the
atmosphere in 2024.
(Source: Joint Research Centre,
September 2025)
The climate crisis is amplifying health inequities and putting additional
strain on health systems. Older adults, children, outdoor workers, and
low- and middle-income communities face heightened risks from
heat-related cardiovascular, respiratory, renal and neurological harms.
We are pursuing ambitious science-based decarbonisation targets
to achieve net zero by 2045, see Climate change from page 42
of the Business Review.
Outlook
Opportunities
and challenges
for the sector
71%
In a 28-country survey, 71%
of people questioned rated
the healthcare industry
trustworthy, and 76% of
people trusted scientists.
(Source: 2025 Edelman
Trust Barometer, January 2026)
The use of advancements in science and digital technologies offer the
potential to revolutionise the healthcare industry. However, coupled with
growing distrust of governments, political leaders and more generally,
information, concerns around the politicisation of science can
exacerbate existing trust issues.
Our Code of Ethics and Values determine how we work together and
the behaviours that drive our success and improve trust, see Business
conduct from page 34 of the Business Review.
7
AstraZeneca
Annual Report & Form 20-F Information 2025
Corporate Governance
Sustainability Statement
Additional Information
Financial Statements
Strategic Report
Healthcare in a Changing World
Value outcome
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, society,
the planet and our shareholders.
Our Purpose
Our Values
Our business model
We push the boundaries
of science to deliver life-
changing medicines.
Our Values determine how we work together and the behaviours that drive our success.
They guide our decision making and define our beliefs.
We follow
the science
Pushing the
boundaries of
science and
working creatively
with partners and
collaborators.
We put
patients first
Striving to
understand
patients’ needs
and considering
them in every
decision we take.
We play
to win
Building high-
performing,
inclusive and
diverse teams and
making the right
choices to win.
We do the
right thing
Employing high
ethical standards
when carrying out
all aspects of our
business globally.
We are
entrepreneurial
Acting with
urgency, bravery,
resilience and
taking smart risks.
We are a global pharmaceutical business with a science-led and patient-focused value
proposition committed to excellence in the research, development, manufacturing and
commercialisation of prescription medicines across primary care, specialty care and rare
diseases. We are also committed to operating responsibly, and in an ethical and transparent
way, to help build a healthier, more sustainable future. We invest resources to create financial
and non-financial value that benefits patients, society, the planet and our business.
Our Purpose, Values and Business Model
Enabled by
R&D
We invest
in the science
and effective
collaborations
to build a strong
pipeline of
innovative
medicines.
People
We acquire, retain and
develop a talented and
diverse workforce.
Technology
We invest in transformative new
technologies and platforms,
including AI, to develop and
deliver medicines more
efficiently.
Commercialisation
We have a global
commercial
presence and skills
to ensure our
medicines reach
patients as quickly
and as broadly
as appropriate.
Manufacturing
and distribution
We have robust
global supply chains
and manufacturing
footprint to ensure
medicines are
delivered to patients.
Improved health
We are transforming
the future of healthcare,
improving health outcomes
and quality of life globally.
Through innovation and
partnerships, we tackle
health challenges, close
care gaps and create
healthier communities.
Returns to shareholders
Revenue from our Product
Sales and collaboration
activities generates cash
flow, which helps us:
•
Fund our investment
in science and the
business to drive
long-term value.
•
Follow our progressive
dividend policy.
•
Meet our debt service
obligations.
For more information, see
Business Review from page 26.
320 million
people positively impacted
1
Inputs
Outputs
1
See page 218 for methodology and definitions.
8
AstraZeneca
Annual Report & Form 20-F Information 2025
Corporate Governance
Sustainability Statement
Additional Information
Financial Statements
Strategic Report
Our Purpose, Values and Business Model
Life-cycle of a medicine
For more information on our
pipeline progression, see our
Development Pipeline Supplement
on our website, www.astrazeneca.
com/annualreport2025.
Post-exclusivity – duration: 20+ years
9. Patent expiry and generic
medicine entry.
Research and development phases – duration: 5-15 years
1. Undertake scientific
research to identify
potential new medicines.
2. Preclinical studies in the
laboratory and in animals
to understand if the potential
medicine is safe to introduce
into humans.
3. Phase I trials with small
groups of healthy human
volunteers (small molecules)
or patients (biologics) to
understand how the potential
medicine is absorbed into the
body, distributed and excreted.
4. Phase II trials on small- to
medium-sized groups of
patients to test effectiveness,
safety and tolerability of the
medicine and determine
optimal dose.
5. Phase III trials in a larger
group of patients to gather
information about
effectiveness and safety
of the medicine and evaluate
the overall benefit/risk profile.
6. Seek regulatory approvals
for manufacturing, marketing
and selling the medicine.
Launch phase – duration: 5-15 years
7. Launch new medicine while
continuously monitoring,
recording and analysing
reported side effects.
8. Post-launch R&D to further
understand the benefit/risk
profile of the medicine and
life-cycle management
activities to understand
its full potential.
I
n
v
e
s
t
m
e
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e
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o
f
r
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v
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n
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e
Inputs
• Applying our
resources to
address unmet
medical need
Outputs
• Improved health
• Returns to
shareholders
Our
Purpose
R
e
s
e
a
r
c
h
a
n
d
d
e
v
e
l
o
p
m
e
n
t
p
h
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s
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s
5
-
1
5
y
e
a
r
s
L
a
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n
c
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p
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a
s
e
5
-
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5
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r
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o
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t
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t
y
2
0
+
y
e
a
r
s
1
2
3
4
5
6
7
8
9
We create financial value throughout
the life-cycle of a medicine
This is a high-level overview of a medicine’s
life-cycle and is illustrative only.
9
AstraZeneca
Annual Report & Form 20-F Information 2025
Corporate Governance
Sustainability Statement
Additional Information
Financial Statements
Strategic Report
Our Purpose, Values and Business Model
$14,575m
$11,861m
$10,345m
2025
2024
2023
$
14,575m
14,575
Net cash inflow from operating activities
$9.16
$8.21
$7.26
2025
2024
2023
Core EPS
$9.16
$9.16
$6.60
$4.54
$3.84
2025
2024
2023
Reported EPS
$6.60
$6.60
Ambition 2030
Our ambition is to be pioneers in science,
lead in our disease areas and transform
patient outcomes. By 2030, we aim to
launch at least 20 new medicines and
achieve $80 billion in Total Revenue
with sustained growth thereafter.
9
NMEs delivered against our
Ambition 2030 of launching
at least 20 new medicines
1
.
Our Key Performance
Indicators and remuneration
We measure our productivity and success
against our Key Performance Indicators (KPIs),
which are aligned to our strategic priorities.
Several KPIs are used to measure Executive
Directors’ remuneration, allowing us to disclose
aggregated targets without disclosing
sensitive commercial information at the
individual KPI level. Variances between the KPI
and values used in determining remuneration
are explained in the Directors’ Remuneration
Report from page 90. Our Ambition Zero
Carbon strategy is reflected in our executive
incentive arrangements.
Our Growth Through Innovation strategy
has three priorities, whose effective delivery
will help us achieve our financial targets.
Our capital allocation priorities include:
investing in the business and pipeline;
maintaining a strong, investment-grade
credit rating; potential value-enhancing
business development opportunities; and
supporting the progressive dividend policy.
Our ambition is to launch at
least 20 new medicines by 2030.
2. Growth and Therapy
Area Leadership
1. Science and
Innovation
3. People and
Sustainability
Achieve Group
Financial Targets
Growth Through Innovation strategy
For more information on:
Our Core measures, see the Financial
Review from page 50.
How Group financial targets are
considered when calculating the annual
bonus, see page 99.
Achieve Group Financial Targets
Key Performance Indicators
Earnings per share (EPS) is an important
profitability metric and a key driver
of shareholder value.
Cash generation is a key driver of long-term
shareholder returns and facilitates
reinvestment in our pipeline, which is critical
for delivering new medicines and future value.
Key
Used for remuneration
of Executive Directors
1
The target of 20 reflects medicines approved since
October 2022.
Actual growth
2025 +23%
2024 +15%
2023 +5%
Actual growth
2025 +12%
2024 +13%
2023 +9%
CER growth
2025 +11%
2024 +19%
2023 +15%
Actual growth
2025 +45%
2024 +18%
2023 +81%
CER growth
2025 +43%
2024 +29%
2023 +96%
10
AstraZeneca
Annual Report & Form 20-F Information 2025
Corporate Governance
Sustainability Statement
Additional Information
Financial Statements
Strategic Report
Our Strategy and Key Performance Indicators
Our Strategy and Key Performance Indicators
38
1
24
2
30
3
2025
2024
2023
38
38
Pipeline progression events
97
1
74
2
56
3
2025
2024
2023
Regulatory events
97
97
Total Revenue
2025
2024
2023
$58,739m
$54,073m
$45,811m
$58,739m
$58,739m
84%
86%
86%
86%
86%
Employee belief that AstraZeneca
is a great place to work
1
2025
2024
2023
-88.1%
-77.5%
-67.6%
2025
2024
2023
Reduction in Scope 1 and 2
GHG emissions since 2015
-88.1
%
-88.1
%
For more information on our
developments in 2025, see:
Research & Development from page 28
of the Business Review.
2025 Group scorecard assessment
on page 99 for performance against
the Group scorecard.
1
36 against our Group scorecard for determining
annual bonus.
2
24 against our Group scorecard for determining
annual bonus.
3
30 against our Group scorecard for determining
annual bonus.
1
69 against our Group scorecard for determining
annual bonus.
2
52 against our Group scorecard for determining
annual bonus.
3
46 against our Group scorecard for determining
annual bonus.
For details of how Total Revenue
is considered when calculating the
annual bonus, see from page 99.
For more information on our
developments in 2025, see:
Therapy Area Review from page 12.
Affordability and pricing on page 41
and Operations on page 33 of the
Business Review.
For more information on our
developments in 2025, see:
People and Sustainability from page 38
of the Business Review.
Key Performance Indicators
Our science measures incentivise the
development of NMEs and the maximisation
of the potential of existing medicines. Pipeline
progression events (Phase II NME starts/
progressions and Pivotal Phase II/Phase III
investment decisions) measure innovation and
sustainability. Regulatory events (regulatory
submissions and approvals) demonstrate the
advancement of this innovation to patients and
the value to the Group.
Key Performance Indicators
Our Total Revenue measure reflects the
importance of incentivising sustainable
growth in both the short and long term.
Key Performance Indicators
Our People KPI is based on our Pulse survey
measure of those employees who believe that
AstraZeneca is a great place to work.
Our Sustainability KPI is our reduction in Scope 1
and 2 greenhouse gas (GHG) emissions
(since
2015 baseline), part of our Ambition Zero
Carbon strategy.
Science and Innovation
Advances in science and technology are
revolutionising the way we work, enabling
us to push the boundaries to deliver new
and better medicines and treatments more
quickly to more patients.
Our strategic focus areas
•
Deliver the next wave
of pipeline innovation
•
Accelerate platform
of therapeutic modalities
•
Transform R&D ways of working
Growth and Therapy Area Leadership
We are working across our therapy areas
to transform care and meet the increasing
demand for healthcare by improving access
to our medicines, expanding treatment
options and enabling patients to take control
of their own health.
Our strategic focus areas
•
Deliver industry-leading growth
in our therapy areas
•
Improve patient outcomes
by transforming care
•
Realise world-class supply chains
People and Sustainability
Recognising the interconnection
between business growth and societal
needs, our sustainability strategy is focused
on action on climate and nature, health
equity and health systems resilience.
We cultivate an inclusive, diverse workplace
where employees thrive and are empowered
to make an impact for people, society
and the planet.
Our strategic focus areas
•
Deliver a great employee experience
•
Lead on climate, equity and resilience
•
Enable an agile organisation
Actual growth
2025 +9%
2024 +18%
2023 +3%
CER growth
2025 +8%
2024 +21%
2023 +6%
1
Source: November Pulse survey for each year.
11
AstraZeneca
Annual Report & Form 20-F Information 2025
Corporate Governance
Sustainability Statement
Additional Information
Financial Statements
Strategic Report
Our Strategy and Key Performance Indicators
Therapy Area Review
Redefining
cancer care
Oncology
Therapy Area Review
We are leading a revolution
to transform cancer care.
Corporate Governance
Sustainability Statement
Additional Information
Financial Statements
Strategic Report
12
AstraZeneca
Annual Report & Form 20-F Information 2025
Therapy Area Review
Key marketed products
Product
Disease
Total Revenue
Commentary
Tagrisso
(osimertinib)
Lung cancer
$7,254m,
up 10%
(10% at CER)
World-leading third-generation tyrosine kinase inhibitor (TKI) and backbone therapy for epidermal
growth factor receptor mutated (EGFRm) non-small cell lung cancer (NSCLC
) across multiple stages
with continued demand growth in both the adjuvant and metastatic settings.
Approved in more than 120 countries across multiple indications.
Imfinzi
(durvalumab)
Lung, liver, biliary tract, gastric,
gastroesophageal junction,
bladder and endometrial
cancers
$6,063m,
up 29%
(28% at CER)
A leading immunotherapy approved for 11 different indications across several tumour types including NSCLC,
small cell lung cancer (SCLC), multiple gastrointestinal cancers and endometrial and bladder cancers.
Approved in 98 countries.
Calquence
(acalabrutinib)
Chronic lymphocytic
leukaemia (CLL); mantle cell
lymphoma (MCL); small
lymphocytic lymphoma (SLL)
$3,518m,
up 12%
(12% at CER)
A second-generation, selective inhibitor of Bruton’s tyrosine kinase that is the current standard of care (SoC)
across multiple forms of blood cancer. Approved in 94 countries.
Lynparza
(olaparib)
Ovarian, breast, pancreatic,
prostate and endometrial
cancers
$3,279m,
down 11%
(12% at CER)
1
Remains the leading PARP inhibitor across five tumour types as measured by total prescription volume,
the SoC in advanced ovarian cancer, and the only PARP inhibitor to improve survival in early breast cancer.
Also approved in combination with abiraterone and prednisone in 1st-line metastatic castration-resistant
prostate cancer (mCRPC) and in combination with
Imfinzi
in advanced or recurrent mismatch repair
proficient endometrial cancer. Approved in 114 countries.
Enhertu
(trastuzumab
deruxtecan)
2
Breast, lung, gastric and
a tumour-agnostic approval
in metastatic HER2-positive
solid tumours
$2,775m,
up 40%
(40% at CER)
Market leadership in HER2-positive and HER2-low metastatic breast cancer, HER2-positive metastatic
gastric cancer and HER2-mutant metastatic lung cancer, as well as the first HER2-directed therapy
approved for tumour agnostic cancers. Approved in more than 90 countries.
Zoladex
(goserelin
acetate implant)
Prostate and breast cancers
$1,151m,
up 5%
(6% at CER)
Approved in 122 countries for the treatment of prostate cancer and in 108 countries for the treatment
of breast cancer in premenopausal women.
Truqap
(capivasertib)
Breast cancer
$728m,
up 69%
(68% at CER)
Approved in combination with
Faslodex
in more than 85 countries in a biomarker-altered subgroup
of HR-positive, HER2-negative metastatic breast cancer.
Imjudo
(tremelimumab)
Liver and lung cancers
$346m,
up 23%
(23% at CER)
Approved in 74 countries in combination with
Imfinzi
for unresectable hepatocellular carcinoma
and in 63 countries in combination with
Imfinzi
and chemotherapy for metastatic NSCLC.
Datroway
(datopotamab
deruxtecan)
2
Breast and lung cancers
n/m
$78m
Approved in 38 countries for patients with previously treated metastatic HR-positive, HER2-negative
breast cancer, and in the US for patients with previously treated advanced EGFRm NSCLC.
1
In 2024, we recognised Collaboration Revenue of $600 million in respect of a
Lynparza
sales-related milestone, of which no similar milestones were recognised in 2025.
In 2025,
Lynparza
Product Sales increased by 7% (CER: 6%). For further details, see page 56.
2
Jointly developed and commercialised with Daiichi Sankyo.
Total Revenue
$25,619m
up 15% (14% at CER)
2024: $22,353m
2023: $18,447m
2nd
Cancer is the second
leading cause of death
worldwide.
Unmet medical need and world market
2025 overview
•
Commercial delivery and sales
performance driven by five
multi-blockbuster medicines:
Tagrisso
,
Imfinzi
,
Calquence
,
Lynparza
and
Enhertu
.
•
Broad penetration of our Oncology
medicines with 13 major market
approvals across 10 indications.
•
10 positive Phase III readouts across
multiple tumour types including lung,
breast, bladder and gastric cancers.
Over 30 million
The global burden of cancer is expected
to grow, with over 30 million newly
diagnosed patients estimated by 2040.
Two thirds of those patients are expected
to be in low- and middle-income countries.
Full details are given in the
Development Pipeline and
Patent Expiries of Key Marketed
Products Supplements on our
website, www.astrazeneca.
com/annualreport2025.
13
AstraZeneca
Annual Report & Form 20-F Information 2025
Corporate Governance
Sustainability Statement
Additional Information
Financial Statements
Strategic Report
Therapy Area Review | Oncology
Our strategy in Oncology
Our ambition is to eliminate cancer
as a cause of death. We seek to transform
outcomes for people living with cancer
through innovative medicines, powerful
combinations and a world-class,
purpose-driven team.
Our commercial strategy to transform
patient outcomes centres on three
key areas:
•
Medicines that matter: building
transformative brands that raise the
standard of care for patients.
•
Leveraging scale: strengthening
leadership and expertise in key tumour
types (lung, haematology, genitourinary/
gynaecological, breast and
gastrointestinal).
•
Transforming patient care: closing the
care gaps to deliver optimal care for
every patient, improving access and
building more resilient healthcare
systems through partnerships.
Our R&D strategy to transform outcomes
focuses on three key pillars:
1. Attacking cancer from multiple angles
and unlocking the potential of combination
therapies (including tumour drivers and
resistance, DNA damage response,
antibody drug conjugates (ADCs)
and radioconjugates, epigenetics,
immuno-oncology, cell therapies
and immune engagers).
2. Treating cancer earlier and smarter
with early detection and personalised
treatments.
3. Pioneering new technologies to help
us advance science and achieve the
next wave of breakthroughs.
2025 review – strategy in action
Lung cancer
Scientific advances in early detection and
precision medicine are strengthening the
potential to offer meaningful patient outcomes
and long-term survival in lung cancer.
We have a comprehensive portfolio, along
with a promising pipeline of potential new
medicines and combinations across diverse
mechanisms of action. By 2030, we aim to
have an AstraZeneca medicine for more than
half of all patients treated for lung cancer.
•
Tagrisso
is the world-leading third-
generation TKI and backbone therapy
for EGFRm NSCLC across multiple stages.
Across markets we see continued demand
growth for
Tagrisso
in both the adjuvant
and metastatic settings.
•
Final overall survival (OS) results from
the FLAURA2 Phase III trial were presented
at the World Conference on Lung Cancer,
showing that
Tagrisso
plus chemotherapy
demonstrated a median OS of nearly four
years in 1st-line EGFRm NSCLC.
•
Positive results from the Phase III
NeoADAURA trial in patients with
resectable, early-stage EGFRm NSCLC
shared at the American Society of Clinical
Oncology (ASCO) showed
Tagrisso
with
or without chemotherapy demonstrated
a statistically significant and clinically
meaningful improvement in major
pathologic response versus neoadjuvant
chemotherapy alone.
•
Results from the SAVANNAH Phase II
trial showed
Tagrisso
plus
Orpathys
demonstrated a highly clinically meaningful
and durable objective response rate in
EGFRm NSCLC with high levels of MET
overexpression and/or amplification in
those whose disease progressed on
treatment with
Tagrisso
.
•
Since its first approval, more than 414,000
patients have been treated with
Imfinzi
,
including 300,000 people with lung cancer.
It is the global SoC in the curative-intent
setting of unresectable, Stage III NSCLC
in patients whose disease has not
progressed after chemoradiation therapy
(CRT) and is the first and only immunotherapy
approved for both limited- and extensive-
stage SCLC.
•
Imfinzi
was approved in the EU, Japan,
China and several other countries for the
perioperative treatment of resectable,
early-stage (IIa-IIIb) NSCLC with no known
EGFRm or ALK rearrangements, based
on the AEGEAN Phase III trial.
•
Additionally,
Imfinzi
was approved in the
EU, Japan and China for patients with
limited-stage SCLC whose disease had
not progressed following platinum-based
concurrent CRT based on the ADRIATIC
Phase III trial results.
•
Datroway
was granted its first approval
in the US in lung cancer for the treatment
of patients with locally advanced or
metastatic EGFRm NSCLC who have
received prior EGFR-directed therapy and
platinum-based chemotherapy based on
results from the TROPION-Lung05 Phase
II trial and supported by data from the
TROPION-Lung01 Phase III trial.
•
The LATIFY Phase III trial of ceralasertib
in combination with
Imfinzi
did not meet
the primary endpoint of OS versus SoC
docetaxel in patients with advanced NSCLC
whose tumours did not have actionable
genomic alterations and whose disease
progressed on or after prior immunotherapy
and platinum-based chemotherapy.
•
Updated results from the first-in-human
ARTEMIDE-01 Phase I trial presented at
the European Society for Medical Oncology
(ESMO) meeting showed encouraging
safety and efficacy for rilvegostomig,
our anti-PD
-1/TIGIT bispecific antibody,
in patients with immunotherapy-naive
metastatic NSCLC.
Breast cancer
We are aiming to redefine clinical practice
and transform outcomes across all subtypes
and stages of breast cancer. Our portfolio
of approved medicines and promising
potential new medicines in development
leverage different mechanisms of action
to address the biologically diverse breast
cancer tumour environment.
•
Enhertu
is the established SoC in
HER2-positive (DESTINY
-Breast03)
and HER2-low (DESTINY
-Breast04)
metastatic breast cancer.
•
Following approvals this year in the US, EU,
Japan and several other countries based
on the DESTINY-Breast06 Phase III trial,
Enhertu
is rapidly replacing chemotherapy
in the post-endocrine setting for patients
with HR-positive, HER2-low or HER2
-
ultralow metastatic breast cancer.
•
Enhertu
also reported positive data from
three Phase III trials, highlighting its role in
earlier treatment settings, and cementing
its benefit across all stages of HER2-
positive disease. In the DESTINY-Breast09
Phase III trial,
Enhertu
plus pertuzumab
demonstrated a highly statistically
significant and clinically meaningful
improvement in progression-free survival
(PFS) versus taxane, trastuzumab and
pertuzumab (THP) as 1st-line therapy for
patients with HER2-positive metastatic
breast cancer.
Enhertu
is now approved in
the US based upon DESTINY-Breast09.
Positive results from the DESTINY-Breast11
Phase III trial showed
Enhertu
followed by
THP in the neoadjuvant setting showed a
statistically significant and clinically
meaningful improvement in pathologic
complete response in patients with
high-risk HER2-positive early-stage breast
cancer. The DESTINY-Breast05 Phase III
trial in the post-neoadjuvant setting
showed
Enhertu
demonstrated a highly
statistically significant and clinically
meaningful improvement in invasive
disease-free survival versus T
-DM1 in
patients with high-risk early breast cancer.
•
Positive results from the TROPION-
Breast02 Phase III trial showed
Datroway
demonstrated a statistically significant and
clinically meaningful improvement for the
dual primary endpoints of OS and PFS
compared to chemotherapy as 1st-line
treatment for patients with locally recurrent
inoperable or metastatic triple-negative
breast cancer for whom immunotherapy
was not an option. With these results,
Datroway
is the first therapy to significantly
improve OS versus chemotherapy in this
patient population.
•
Datroway
was approved in the US, EU,
China and several other countries for the
treatment of patients with unresectable or
metastatic HR-positive, HER2-negative
breast cancer who have received prior
endocrine-based therapy and chemotherapy.
Approval was based on the results of the
TROPION-Breast01 Phase III trial.
14
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continued
•
Positive results from the SERENA-6 Phase
III trial showed that camizestrant in
combination with a cyclin-dependent
kinase 4/6 inhibitor (palbociclib, ribociclib
or abemaciclib) demonstrated a highly
statistically significant and clinically
meaningful improvement in PFS in the
1st-line treatment of patients with
HR-positive, HER2-negative advanced
breast cancer whose tumours have an
emergent ESR1 mutation.
•
Truqap
was approved in China in
combination with
Faslodex
as the first
AKT-inhibitor for patients with HR-positive,
HER2-negative locally advanced or
metastatic breast cancer with one or more
biomarker alterations (PIK3CA, AKT1
or PTEN) following disease progression
or recurrence, based on the CAPItello-291
Phase III trial.
Genitourinary/gynaecological cancers
In genitourinary cancers, we aim to transform
treatment paradigms with our portfolio
of approved medicines and a diverse pipeline
of innovative treatments to help more patients.
This includes improving care for people with
muscle-invasive and non-muscle-invasive
bladder cancer with
Imfinzi
and solidifying
Lynparza
plus abiraterone and prednisone
as a SoC in 1st-line mCRPC. In gynaecological
cancers, we will continue to redefine survival
expectations, maximising
Lynparza
’s position
as a SoC in advanced ovarian cancer,
and advancing in combination with
Imfinzi
in endometrial cancer.
•
Imfinzi
was approved in several markets
including the US, EU and Japan for the
treatment of muscle-invasive bladder
cancer (MIBC), based on the NIAGARA
Phase III trial results.
•
Results from the POTOMAC Phase III trial
showed that adding one year of treatment
with
Imfinzi
to Bacillus Calmette-Guérin
(BCG) induction and maintenance therapy
demonstrated a statistically significant
and clinically meaningful improvement
in disease-free survival for patients with
BCG-naïve, high-risk non-muscle-invasive
bladder cancer (NMIBC) compared to
BCG treatment alone. Regulatory reviews
are underway.
•
Full results from the Phase III trial of
Truqap
in combination with abiraterone and ADT
in PTEN-deficient de novo metastatic
hormone-sensitive prostate cancer were
presented at the 2025 ESMO meeting.
•
The CAPItello-280 Phase III trial evaluating
Truqap
in combination with docetaxel
and ADT in patients with mCRPC was
discontinued following an Independent
Data Monitoring Committee review of data
from a prespecified interim analysis, which
concluded that the
Truqap
combination
was unlikely to meet the dual primary
endpoints of radiographic progression-
free survival (rPFS) and OS versus the
comparator arm upon trial completion.
•
Encouraging data from our next wave of
potential new oncology medicines was
presented at the ESMO meeting, including:
–
FONTANA Phase I/IIa first-in-human
trial of AZD5335, a folate receptor
alpha (FRα)-targeting ADC, in patients
with platinum-resistant recurrent
ovarian cancer.
–
PETRANHA Phase I/II trial of saruparib
plus androgen receptor pathway
inhibitors in patients with metastatic
prostate cancer.
Gastrointestinal cancers
We have a broad and robust portfolio and
development programme for the treatment
of gastrointestinal cancers in many stages
and disease types across multiple approved
and potential new medicines.
•
Imfinzi
was approved in the US, and has
been recommended for approval in the
EU, for patients with early-stage gastric
and gastroesophageal junction (GEJ)
cancers based on the MATTERHORN
Phase III trial. Results showed
perioperative treatment with
Imfinzi
in
combination with SoC FLOT (fluorouracil,
leucovorin, oxaliplatin and docetaxel)
chemotherapy demonstrated a statistically
significant and clinically meaningful
improvement in the primary endpoint of
event-free survival in patients with
early-stage and locally advanced (Stages
II, III, IVA) gastric and GEJ cancers.
•
Positive results from the DESTINY-
Gastric04 Phase III trial demonstrated
statistically significant and clinically
meaningful improvement in OS as a
2nd-line treatment for patients with
HER2-positive metastatic gastric cancer.
•
Data from our promising bispecifics pipeline
was presented at ASCO, including the
GEMINI-Hepatobiliary Phase II trial which
showed rilvegostomig plus chemotherapy
demonstrated promising efficacy with
a manageable safety profile and sustained
target engagement in advanced biliary
tract cancer.
Blood cancers
In haematology, we are unleashing the
potential of
Calquence
, the current SoC
in multiple forms of blood cancer, while
pushing the boundaries of science to
redefine care through ambitious clinical
development, deep clinical insights and
a focus on improving the patient experience.
•
Calquence
plus chemoimmunotherapy
was approved in several markets including
the US, the EU and Japan for the 1st-line
treatment of MCL based on the ECHO
Phase III trial.
•
A fixed-duration regimen of
Calquence
in combination with venetoclax, with
or without obinutuzumab, was approved
in the EU and several markets based
on the AMPLIFY Phase III trial.
•
In China,
Calquence
was approved as a
monotherapy for the treatment of CLL/SLL
based on the ChangE Phase III trial.
•
Early data from our novel CD19xCD3
bispecific T-cell engager, surovatamig,
in follicular lymphoma and diffuse large
B-cell lymphoma showed promising
clinical efficacy and safety.
Early detection is changing lives, but breast cancer
remains the number one cause of female cancer deaths
worldwide, with more than 665,000 deaths each year.
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15
Our ambition is to transform care for billions
of people living with chronic diseases and
deliver long-lasting immunity. We are working
to intervene earlier to protect vital organs, slow
or reverse disease progression, and achieve
remission for often degenerative, debilitating
and life-threatening conditions, so many more
people can live better, healthier lives.
Transforming
care for
billions
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Therapy Area Review
Our ambition is to enhance care and
to improve outcomes for the millions
of people who are living with the
complexities of cardiovascular, renal
and metabolic diseases; to intervene
early to protect vital organs; and to
reverse, slow or stop disease progression
of these often debilitating, progressive
and life-threatening conditions.
We have a bold ambition to transform
respiratory and immunology care for
patients – moving beyond symptom
control to disease modification,
remission and, one day, cure.
Our ambition is to tackle serious viral
and bacterial infectious diseases with
a high burden of disease to address
some of the leading threats to global
public health.
2025 overview
•
Delivered strong financial performance
driven by the global rollout of
Wainua
,
continued growth of
Lokelma
and
sustained demand for
Farxiga
, reaching
about 77 million patients globally. We
saw increased generic competition for
Farxiga
and other established products.
•
Advanced late-stage portfolio, with two
positive Phase III trial results for
baxdrostat in hypertension and the
launch of the laroprovstat Phase III
programme in patients with elevated
low-density lipoprotein cholesterol (LDL-C)
and atherosclerotic cardiovascular
disease (ASCVD) or at risk of a first
ASCVD event. Early-stage portfolio
progress includes positive Phase IIb
laroprovstat results in LDL-C.
•
Advanced Phase IIb trials in obesity
(AZD5004 VISTA, AZD6234 APRICUS,
AZD9550+AZD6234 ASCEND) and in T2D
(AZD5004 SOLSTICE, AZD6234 ARAY).
2025 overview
•
Achieved double-digit growth driven
by key launch brands (
Breztri
,
Fasenra
,
Tezspire
,
Saphnelo
,
Airsupra
).
Breztri
secured blockbuster status with
Total Revenue of $1.2 billion.
•
Progressed late-stage portfolio with
new life-cycle management indications,
including four major market approvals
and six Phase III programme readouts.
•
Clinical progression for early portfolio,
including four Phase I and II trial
starts, including in systemic lupus
erythematosus (SLE), asthma and chronic
obstructive pulmonary disease (COPD).
•
Received a world and industry-first
approval in the UK for
Trixeo
Aerosphere
,
our triple-combination therapy for
COPD for use with the next-generation
propellant (NGP) with near-zero
Global Warming Potential (GWP).
2025 overview
•
FluMist
Home Administration launched
in the US in August ahead of the
2025-2026 flu season, the first and
only seasonal flu vaccine approved for
self-administration for adults aged 18-49
or by caregivers for children aged 2-17.
•
Beyfortus
is now approved in over
60 countries as the first respiratory
syncytial virus (RSV) lower respiratory
tract disease preventative option for
a broad infant population.
Cardiovascular, Renal & Metabolism
Respiratory & Immunology
Vaccines & Immune Therapies
Total Revenue
$12,861m
up 3% (2% at CER)
2024: $12,517m
2023: $10,628m
Total Revenue
$8,866m
up 13% (12% at CER)
2024: $7,876m
2023: $6,404m
Total Revenue
$1,268m
down 13% (14% at CER)
2024: $1,462m
2023: $1,357m
Unmet medical need and world market
50%
of deaths worldwide are predicted
to be caused by CVRM-related
diseases by 2040.
1.4 billion
people across the globe are
affected by hypertension.
Unmet medical need and world market
~540 million
people worldwide have chronic
respiratory and immune-mediated
diseases.
$4.3 trillion
is the estimated global burden of
COPD by 2050, a leading cause of
hospital admissions and the world’s
third leading cause of death.¹
1
Excluding COVID-19.
Unmet medical need and world market
One billion
cases of seasonal influenza annually.
~3.6 million
young children hospitalised each
year due to RSV according to the
World Health Organization.
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Key marketed products
Product
Disease
Total Revenue
Commentary
Cardiovascular, Renal & Metabolism (CVRM)
Farxiga
/
Forxiga
(dapagliflozin)
Type 2 diabetes (T2D)
Heart failure (HF)
Chronic kidney disease
(CKD)
$8,492m,
up 10%
(9% at CER)
Retained its position as the number one SGLT2 inhibitor worldwide by volume, driven by broad guideline
support and continued uptake across HF and CKD. Approved in 126 countries, with sustained global growth
supported by expanding use across the cardio-renal-metabolic spectrum.
Crestor
(rosuvastatin calcium)
Dyslipidaemia
Hyper-cholesterolaemia
$1,218m,
up 5%
(6% at CER)
Continued to serve as a widely used therapy in lipid management, with demand supported by its broad
global footprint and ongoing need for effective LDL-C lowering. Approved in 91 countries.
Brilinta
/
Brilique
(ticagrelor)
Acute coronary
syndromes (ACS)
$823m,
down 38%
(38% at CER)
Delivered steady performance in the prevention of atherothrombotic events in adult patients with ACS,
supported by ongoing adoption of guideline-directed therapies. Approved in more than 124 countries.
Continues to play a wider role in secondary prevention of cardiovascular (CV) events.
Lokelma
(sodium zirconium
cyclosilicate)
Hyperkalaemia (HK)
$698m,
up 29%
(28% at CER)
Delivered strong growth driven by consistently robust demand across all regions, underpinned by rising
recognition of HK as a barrier to optimised guideline-directed treatments in CKD and HF. Approved in
67 markets, with increasing patient adoption.
Seloken
/
Toprol-XL
(metoprolol succinate)
Hypertension
HF
Angina
$608m,
stable
(up 2% at CER)
Maintained its position as a beta-blocker for CV disease management across major markets.
Performance reflects stable use in hypertension and HF. Approved in 61 countries.
Roxadustat
Anaemia of CKD
$276m,
down 18%
(18% at CER)
Continued to support adult patients requiring treatment for CKD-related anaemia. Performance
reflects targeted use in regulated markets.
Wainua
/
Wainzua
(eplontersen)
Polyneuropathy of
hereditary transthyretin-
mediated amyloidosis
(ATTRv-PN)
$212m,
up 148%
(147% at CER)
Approved for the treatment of adult patients with stage one or two ATTRv-PN in 20 countries,
including in the US.
Respiratory & Immunology (R&I)
Symbicort
(budesonide/
formoterol)
Asthma
COPD
$2,885m,
stable
(stable at CER)
Approved in mild asthma as an anti-inflammatory reliever in 47 countries.
Fasenra
(benralizumab)
Severe eosinophilic
asthma (SEA)
Eosinophilic
granulomatosis with
polyangiitis (EGPA)
$1,981m,
up 17%
(16% at CER)
Approved as an add-on maintenance treatment for SEA in 83 countries. Approved for EGPA in more
than 70 countries.
Breztri
/
Trixeo
(budesonide/
glycopyrrolate/
formoterol)
COPD
$1,199m,
up 23%
(22% at CER)
Approved in more than 80 countries for the treatment of COPD. Approved for use with the NGP in the UK
and in transition in EU countries based on a positive CHMP opinion.
Tezspire
(tezepelumab)
Severe asthma
$1,131m,
up 65%
(64% at CER)
Approved in more than 70 countries. In 2025,
Tezspire
was approved for chronic rhinosinusitis with
nasal polyps in the US and EU.
Saphnelo
(anifrolumab)
SLE
$686m,
up 45%
(44% at CER)
Approved for the treatment of SLE in more than 70 countries. In 2025,
Saphnelo
was approved
for subcutaneous (self-administration) in the EU.
Pulmicort
(budesonide)
Asthma
COPD
Croup
$518m,
down 24%
(24% at CER)
Approved in more than 115 countries.
Airsupra
(albuterol/budesonide)
Asthma
$166m,
up 150%
(150% at CER)
Approved in asthma for the treatment of symptoms and prevention of exacerbations in the US and six
other countries.
Vaccines & Immune Therapies (V&I)
Beyfortus
(nirsevimab)
RSV
$703m,
down 3%
(3% at CER)
Commercialised in collaboration with Sanofi in all territories except the US where Sanofi has full
commercial control. Approved in more than 60 countries.
Synagis
(palivizumab)
RSV
$292m,
down 35%
(34% at CER)
Available in more than 100 countries outside the US. Sobi holds the US rights.
FluMist
(live attenuated
influenza vaccine)
Influenza
$272m,
up 6%
(3% at CER)
Approved in the US, EU and other countries. Approved for self-administration in the US. Daiichi Sankyo
holds rights to
FluMist
in Japan.
Full details are given in the
Development Pipeline and
Patent Expiries of Key Marketed
Products Supplements on our
website, www.astrazeneca.
com/annualreport2025.
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continued
Our strategy in CVRM
Our ambition is to improve outcomes for
the millions of people who are living with
cardiovascular, renal and metabolic
diseases by enhancing care, intervening
early to protect vital organs and reversing,
slowing or stopping disease progression.
2025 review – strategy in action
Cardiovascular
We are advancing science across CV disease
by targeting the core risk factors that drive
stroke, heart disease and HF.
•
Hypertension: we are focused on
addressing the significant global burden
of hypertension, with around half of those
affected not achieving recommended
blood pressure control.
•
Dyslipidaemia and ASCVD: we continue
to address elevated LDL-C as a central CV
risk factor, with ~70% of patients globally
not at LDL-C goal despite statin therapy.
•
HF and amyloidosis: we aim to prevent
end-stage HF by enabling earlier diagnosis
and treatment of transthyretin-mediated
amyloid cardiomyopathy (ATTR-CM).
ATTR-CM is an underdiagnosed disease,
with an estimated global prevalence
of 300,000-500,000 patients, and
an average mortality of 2-5 years.
Our CV portfolio continues to deliver
important clinical and regulatory milestones.
•
Baxdrostat, an aldosterone synthase
inhibitor, delivered positive Phase III results
in treatment-resistant and uncontrolled
hypertension, with robust blood pressure
reductions in both the BaxHTN and Bax24
trials. Findings were presented at the
European Society of Cardiology and
American Heart Association Scientific
Sessions. Baxdrostat, alone and in
combination, is being studied in seven
trials and four indications, reflecting our
confidence in its potential in hypertension,
primary aldosteronism, CKD and
hypertension, and prevention of HF.
•
In March 2025, together with Ionis,
we received EU approval for
Wainzua
for
the treatment of hereditary transthyretin-
mediated amyloidosis (ATTRv) in adult
patients with stage one or two
polyneuropathy. This follows the US
FDA approval in 2023 and Fast Track
designation in ATTR-CM in 2024.
•
Balcinrenone, a novel non-steroidal
mineralocorticoid receptor antagonist
(MRA), is being evaluated in combination
with dapagliflozin to address the unmet
medical need in patients with chronic HF
and impaired kidney function. The Phase
III BalanceD-HF trial is underway and aims
to deliver the cardiorenal benefits of MRAs
while potentially reducing the risk of HK.
•
In dyslipidaemia, laroprovstat (formerly
AZD0780) achieved positive Phase IIb
results in the PURSUIT trial, demonstrating
robust LDL-C lowering with no food
or fasting requirements and supporting
its potential as an oral adjunct to existing
lipid-lowering therapies. Findings were
presented at the American College of
Cardiology Scientific Session & Expo,
with simultaneous publication in the Journal
of the American College of Cardiology.
Laroprovstat is being investigated in a
Phase III clinical programme focused on
LDL-C lowering in high
-risk patient
populations (AZURE-LDL, AZURE-HeFH,
and AZURE-Outcomes).
•
AZD5462, currently in Phase IIb, is the first
and only small molecule in clinical trials
mimicking the biology of the natural
pregnancy hormone relaxin to improve
cardiac function in patients with chronic HF.
Renal
We are driving renal disease innovation
by addressing early dysfunction, high-risk
markers and overlapping factors that
accelerate progression.
•
CKD: we focus on preventing or slowing
kidney failure across the disease
spectrum, which affects millions globally
(30 million HF, >50 million high proteinuria,
600 million hypertension).
Our renal portfolio continues to deliver
important clinical and regulatory milestones.
•
Zibotentan/dapagliflozin is being evaluated
in patients with CKD and proteinuria in the
ongoing Phase III ZENITH-CKD clinical trial.
•
Baxdrostat delivered positive Phase II
results in the FigHTN trial for patients with
CKD and hypertension. Findings were
presented at the American Heart Association
Hypertension Scientific Session, with
simultaneous publication in the Journal
of the American Society of Nephrology.
Baxdrostat is being studied in combination
with dapagliflozin in patients with CKD
(BaxDuo-Arctic, BaxDuo-Pacific).
•
Balcinrenone/dapagliflozin delivered
positive Phase IIb results in the MIRO-CKD
trial for patients with CKD at a high risk
of disease progression. Findings were
shared in a late-breaking presentation
at the American Society of Nephrology’s
Kidney Week and simultaneously
published in The Lancet.
•
AZD2373, developed in collaboration with
Ionis, has the potential to be the first
precision medicine in our renal pipeline
for treatment of APOL1-mediated kidney
disease. Phase I data has demonstrated
safety, tolerability and proof of mechanism
in healthy participants.
Metabolism
We are expanding our work across metabolic
disease by targeting the drivers of adiposity,
insulin resistance and inflammation that
heighten cardiometabolic risk.
•
Obesity, weight management and diabetes:
we aim to reduce or reverse weight-
related comorbidities and advance organ
protection for the 2.5 billion people living
with obesity or overweight, most of whom
have at least one co-morbidity.
Our metabolism portfolio continues to deliver
important clinical and regulatory milestones.
•
We have advanced the Phase IIb trials
in obesity (AZD5004 VISTA, AZD6234
APRICUS, AZD9550+AZD6234 ASCEND)
as well as in T2D (AZD5004 SOLSTICE,
AZD6234 ARAY).
•
We are progressing an innovative pipeline
in metabolic dysfunction-associated
steatohepatitis and advanced liver disease
to target the main disease drivers. This
includes AZD2389 (small molecule FAP
inhibitor) targeting advanced liver fibrosis
currently in Phase II studies.
•
We acquired SixPeaks Bio, strengthening
our existing obesity and weight management
pipeline with the lead asset, a next-
generation monoclonal antibody (mAb)
that targets Activin Receptor Type 2A/B,
with the potential to combine and
conjugate with peptides targeting
complementary mechanisms.
Cardiovascular, Renal & Metabolism
Nearly 64 million people worldwide live
with heart failure. Advancing early detection,
diagnosis and effective management can
improve patient outcomes.
19
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Annual Report & Form 20-F Information 2025
Our strategy in R&I
We are committed to transforming care
for some of the most debilitating and
complex respiratory and immune-
mediated diseases. Our portfolio of
inhaled and biologic medicines, and our
pipeline for the future, seek to address
the challenges and vast unmet medical
needs patients face today.
We are leading the way in reducing the
environmental burden of care by driving
improvements in patient outcomes as
well as transitioning to pressurised
metered-dose inhaled (pMDI) respiratory
medicines with a propellant that has
near-zero GWP.
2025 review – strategy in action
COPD
We are working to eliminate COPD as
a leading cause of death, transforming
care through our broad portfolio by driving
timely diagnosis, optimising therapeutic
intervention and reducing mortality by
addressing cardiopulmonary risk. We are
advancing innovative medicines with
different mechanisms of action, including
next-generation biologics and novel orals
to reduce exacerbations and elevate the
standard of care across the disease
severity spectrum.
•
Breztri
remains the fastest-growing triple
inhaled therapy within the fixed-dose
combination triple class
1
across major
markets.
Breztri
has demonstrated a
reduction in mortality that has been
recognised in the 2026 Report published
by the Global Initiative for Lung Disease
(GOLD). We are advancing evidence
of
Breztri
’s ability to reduce the risk of
exacerbations and all-cause mortality
versus dual-therapy. The ORATOS clinical
trial to study the effect of
Breztri
on heart
and lung function enrolled its first patient
subject in 2025. In 2025, we received a
world and industry-first approval in the
UK for
Trixeo
Aerosphere
(marketed as
Breztri
in the rest of the world), our
triple-combination therapy for COPD for
use with the NGP with near-zero GWP.
This was followed by a positive opinion
from the Committee for Medicinal
Products for Human Use (CHMP) of the
European Medicines Agency, endorsing it
for use in the EU. Regulatory applications
are also currently under review in the US,
China and additional countries.
•
We have a robust late-stage biologics
programme in COPD, including
tozorakimab (Phase III LUNA programme),
which has a unique dual mechanism of
action targeting IL-33, with high
-level
results expected in 2026. Plus, indication
expansion opportunities with
Tezspire
(Phase III JOURNEY and EMBARK trials
started in 2025). In 2025,
Fasenra
’s
Phase III RESOLUTE trial for COPD
demonstrated numerical improvements,
but did not meet the primary endpoint
of reducing COPD exacerbations.
•
Our innovative early pipeline in COPD is
aimed at reaching patients who may not
have access to biologics but no longer
respond to inhaled therapy. AZD6793
is an oral small molecule IRAK4 inhibitor
targeting key COPD disease drivers
triggered by bacterial and viral infections,
smoke and other environmental factors.
Data from the AZD6793 Phase I clinical
trial were presented at the 2025 annual
European Respiratory Society Congress.
The Phase IIb PRESTO clinical trial is
underway.
Asthma
We strive to eliminate asthma attacks and
achieve clinical remission by reinforcing
our inhaled portfolio as the backbone of
care, driving towards clinical remission
with systemic biologics and introducing
novel oral and inhaled medicines to
address patients who are not controlled
on SoC inhaled therapy.
•
Symbicort
maintained its position as the
leading inhaled corticosteroid (ICS)/
long-acting beta2-agonist (LABA) globally
by volume and value. Performance has
been driven by strong growth in Emerging
Markets, and resilient performance in the
US offset by generic erosion in the EU
and Japan.
•
Airsupra
has had strong uptake in the
US as the first and only FDA-approved
anti-inflammatory rescue therapy that
treats symptoms and prevents
exacerbations. In 2025, the US FDA
updated the
Airsupra
label to include
results from the BATURA Phase III
clinical trial for patients with intermittent,
mild or persistent asthma.
•
In 2025, we reported results on the
Breztri
Phase III KALOS and LOGOS
trials in patients with uncontrolled asthma.
The results showed clinically meaningful
and statistically significant improvement
in lung function compared with dual-
combination inhaled (ICS/LABA)
medicines.
•
Tezspire
continues to gain market share,
achieve labels for a broad population
of severe asthma patients, and secure
reimbursement globally.
•
In 2025, China regulatory authorities
approved the paediatric indication for
Fasenra
30mg for SEA, in patients as
young as six years old. In 2025, we
announced the positive high-level
results from the
Fasenra
NATRON
Phase III clinical trial for patients with
hypereosinophilic syndrome, a rare
disease characterised by elevated
eosinophils in the blood and fatigue,
rash and organ failure.
•
Our early pipeline is exploring innovative
compounds including new modalities,
aimed at targeting key disease
mechanisms. AZD8630, an inhaled
fragment antibody (inhaled biologic) in
Phase II in co-development with Amgen
Inc., targets thymic stromal lymphopoietin
and tozorakimab is in Phase IIb for
uncontrolled asthma.
Respiratory & Immunology
1
Global triple therapy market definition:
Breztri
, Enerzair,
Trelegy, Trimbow.
Some 391 million people are now living with COPD globally and
up to 80% are undiagnosed. Early screening, diagnosis and
optimal treatment can slow its progression and improve lives.
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continued
Other Respiratory
We are moving beyond asthma and COPD
to address other respiratory diseases with
significant unmet medical need, including
severe viral lower respiratory tract disease
(svLRTD), non-cystic fibrosis bronchiectasis,
interstitial lung disease and idiopathic
pulmonary fibrosis.
•
The TILIA Phase III trial of
tozorakimab in svLRTD is ongoing.
•
We also announced
Tezspire
was
approved for the treatment of chronic
rhinosinusitis with nasal polyps in
the US and EU.
•
In our early portfolio, we continue
exploring new mechanisms to address
unmet medical needs in interstitial lung
disease and idiopathic pulmonary fibrosis.
Immunology
We aim to become a leader in immunology,
redefining treatment paradigms in areas of
high unmet medical need, moving to clinical
remission and eventually cure.
•
Saphnelo
continues its rapid growth in
SLE. In 2025, we announced the positive
high-level results from the Phase III
TULIP-SC clinical trial studying
subcutaneous administration of
Saphnelo
in SLE, which demonstrated clinically
meaningful and statistically significant
reduction in disease activity.
Saphnelo
subcutaneous administration was
subsequently approved in the EU for adult
patients with SLE who are receiving
standard therapy and it is under regulatory
review in several other countries around
the world, including the US and Japan.
•
In 2025, the US FDA issued a Complete
Response Letter (CRL) regarding the
Biologics License Application (BLA) for
Saphnelo
for subcutaneous administration
in SLE. We have provided the information
requested by the FDA and anticipate a
decision in the first half of 2026.
•
Saphnelo
’s Phase III AZALEA study for
SLE patients in China also reported
positive results in 2025. Additionally,
updated treatment guidelines from the
American College of Rheumatology in
2025 recognised remission and oral
corticosteroid sparing as key treatment
goals in SLE.
•
Ongoing Phase III trials exploring the
potential of
Saphnelo
in relevant
rheumatologic diseases include IRIS
(lupus nephritis), LAVENDER (cutaneous
lupus erythematosus), JASMINE (myositis)
and DAISY (systemic sclerosis).
Our early pipeline in lupus and related
diseases includes novel and next-generation
therapies with the potential for
transformational efficacy:
•
Two T-cell engager complex biologics
progressed into Phase I: AZD5492 (CD20/
CD8) in SLE as well as other autoimmune
indications, and surovatamig (CD19/CD3)
in SLE as well as rheumatoid arthritis (RA).
We’re expanding our presence in rheumatology
in other areas of high unmet medical need:
•
Fasenra
is now approved for the treatment
of EGPA, a disease characterised by
inflammation of the blood vessels that
causes organ damage, including the
lungs and gastrointestinal tract, in more
than 70 countries including the US, EU
and Japan, based on positive results
from the MANDARA Phase III trial.
•
AZD1163, a PAD2/4 inhibitor moved into
Phase IIb in RA in patients who are partial
and inadequate responders to other
medicines (TNFs). Positive Phase I results
were presented at the American College
of Rheumatology annual meeting in 2025,
supporting that PAD2/4 enzymes drive
the autoimmune response leading to
inflammation and tissue damage in RA.
In gastroenterology, compounds in
clinical development include:
•
Tezspire
is being investigated in
eosinophilic esophagitis, a chronic
inflammatory disease of the
gastrointestinal tract, with the Phase III
high-level results anticipated in 2026
(CROSSING trial).
•
A Phase II trial is ongoing exploring
AZD7798, a mAb that targets CCR9
positive cells for depletion in small
bowel Crohn’s disease.
Vaccines & Immune Therapies
Our strategy in V&I
Through next-generation vaccines and
long-acting antibodies, we aim to prevent
viral respiratory diseases as a key cause
of morbidity, hospitalisation and death
and deliver new solutions in the fight
against serious bacterial and chronic
viral infections.
We are advancing platforms such as
virus-like particle vaccine technology,
bioconjugate vaccines, half-life extended
antibodies and new antibody formats
such as bispecifics to accelerate
development and deliver tailored immune
protection against previously hard-to-
target or rapidly evolving pathogens.
2025 review – strategy in action
•
In August 2025, we launched
FluMist
Home Administration in the US, the first
seasonal flu vaccine approved for
self- or caregiver administration at home.
FluMist
received approvals in 10 additional
countries in 2025, including in the
Southern Hemisphere enabling first
launches in the region in 2026.
•
mAbs targeting Clostridium difficile,
Pseudomonas aeruginosa, and
Staphylococcus aureus bacterial
pathogens advanced into Phase II trials
and a pandemic influenza mRNA vaccine
candidate entered Phase I/II development.
For more information on Site
F-gas management, including
pMDI inhalers, Scope 1 and 2
decarbonisation levers, Scope
3 decarbonisation levers
and Transition risk and
opportunities, see Climate
change from page 42 of the
Business Review.
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Pioneering new
possibilities
Rare Disease
We continue to advance a diversified pipeline across
disease areas with significant unmet medical need,
where scientific progress has been absent or limited,
advancing first- and/or best-in-class medicines
and new modalities, while expanding our global
geographic footprint for the rare disease community.
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Total Revenue
$9,126m
up 4% (4% at CER)
2024: $8,768m
2023: $7,764m
400 million
people around the
world are living with
a rare disease.
Unmet medical need and world market
<10%
of rare diseases
have approved
treatment options.
2025 overview
•
Delivering robust and sustainable
growth since acquisition of Alexion.
•
Performance driven by durable
growth across indications as well
as market expansion.
•
Advancing next wave of innovative
therapies with a focus on first- and/or
best-in-class medicines and new
modalities with curative potential.
•
A continued focus on launching in
new countries globally and addressing
underserved rare populations.
•
Working with health systems,
governments and advocates to
improve health equity for people
living with rare diseases.
Key marketed products
Product
Disease
Total Revenue
Commentary
Ultomiris
1
(ravulizumab)
Paroxysmal nocturnal
haemoglobinuria (PNH)
Atypical haemolytic uremic
syndrome (aHUS)
Generalised myasthenia
gravis (gMG)
Neuromyelitis optica
spectrum disorder (NMOSD)
$4,718m,
up 20%
(19% at CER)
Approved in 73 countries for the treatment of certain adult and paediatric patients with PNH and
patients with aHUS, including the US, EU, Japan and China.
Approved in 73 countries for the treatment of adult patients with gMG who are anti-acetylcholine
receptor (AChR) antibody-positive (Ab+
), including the US, EU, Japan and China.
Approved in 73 countries for the treatment of adult patients with NMOSD who are anti-aquaporin-4
(AQP4) antibody-positive (Ab+
), including the US, EU, Japan and China.
Soliris
(eculizumab)
PNH
aHUS
gMG
NMOSD
$1,837m,
down 29%
(28% at CER)
Approved in 60 countries for the treatment of patients with PNH and patients with aHUS, including the US,
EU, Japan and China.
Approved in 51 countries for the treatment of patients with gMG who are AChR-Ab+ including the US, EU,
Japan and China.
Approved in 53 countries for the treatment of adult patients with NMOSD who are AQP4-Ab+, including
the US, EU, Japan and China.
Strensiq
(asfotase alfa)
Hypophosphatasia
(HPP)
$1,678m,
up 19%
(18% at CER)
Approved in 64 countries for the treatment of certain patients with HPP, including the US, EU and Japan.
Koselugo
(selumetinib)
Neurofibromatosis type 1 (NF1)
Plexiform neurofibromas (PN)
$662m,
up 5%
(3% at CER)
Approved in 76 countries for the treatment of certain paediatric patients with NF1 PN, including the US, EU,
Japan and China, and in 41 countries for the treatment of certain adult patients with NF1 PN, including the
US, EU and Japan.
1
Ultomiris
Total Revenue includes revenue of
Voydeya
which commenced in 2024.
Full details are given in the
Development Pipeline and
Patent Expiries of Key Marketed
Products Supplements on our
website, www.astrazeneca.
com/annualreport2025.
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are positioned to address the most
prevalent types of cardiac amyloidosis.
Amyloid light-chain (AL) amyloidosis
AL amyloidosis occurs when defective
plasma cells in bone marrow produce
abnormal proteins which aggregate to
form amyloid fibril deposits. Amyloid
fibril accumulation in tissues or organs,
particularly in the heart and kidneys, may
cause systemic and progressive damage
and high mortality rates caused most
often from cardiac failure.
Anselamimab is an investigational,
potentially first-in-class anti-fibril mAb
designed to improve organ function by
reducing or eliminating amyloid deposits in
the tissues and organs of patients living with
AL amyloidosis. While high-level results from
the CARES Phase III clinical programme did
not achieve statistical significance for the
primary endpoint in patients with Mayo
stages IIIa and IIIb AL amyloidosis, compared
to placebo, anselamimab showed highly
clinically meaningful improvement in time
to all-cause mortality and frequency of CV
hospitalisation in a prespecified subgroup
of patients with AL-kappa amyloidosis,
compared to placebo.
Transthyretin amyloidosis (ATTR)
ATTR-CM is a systemic, progressive,
debilitating condition that can lead to HF.
Median survival in patients with advanced
cardiomyopathy is between one to two
years from diagnosis. There are frequent
misdiagnoses and ATTR-CM can often go
undetected for many years.
Cliramitug (ALXN2220) is an investigational
mAb designed to selectively bind to and
remove ATTR amyloid fibrils, with the
potential to transform the course of disease
by depleting ATTR build-up. A Phase III trial
is underway and fully enrolled evaluating
cliramitug as an add-on treatment to SoC
in patients with ATTR-CM.
We hold an exclusive licence from BridgeBio
to develop and commercialise
Beyonttra
(acoramidis), a next-generation, orally-
administered, highly-potent, small-molecule
stabiliser of TTR, in Japan. In March 2025,
Beyonttra
was approved in Japan for the
treatment of adults with ATTR-CM.
Rare bone, metabolic and endocrine
disorders
Hypophosphatasia
HPP is a rare, inherited and progressive
metabolic disease characterised by defective
mineralisation (the process that hardens and
strengthens bones and teeth), impaired
calcium and phosphate regulation, and
non-skeletal manifestations such as muscle
weakness, generalised fatigue and pain.
HPP is caused by deficient activity of an
enzyme known as alkaline phosphatase (ALP).
Our strategy in Rare Disease
We are pioneering new possibilities
for the rare disease community to help
improve outcomes for more people
impacted by rare disease around the
globe through:
•
Continued leadership in complement
inhibition.
•
Diversifying our pipeline across disease
areas with significant unmet medical need,
using an array of innovative modalities.
•
Advancing an industry-leading suite of
next-generation potential therapies,
including biologics, genomic medicines,
small molecules, and cell therapies.
•
Bringing transformative treatments to
more rare disease patients in more
countries around the globe.
•
Raising awareness of rare diseases,
while shaping policies and ecosystems
needed to advance access to innovation.
2025 review – strategy in action
Pioneering leadership in complement
In 2025, we saw growth in our C5 franchise,
driven particularly by
Ultomiris
and demand
across indications, including competitive
gMG and PNH markets. Additionally, we
continue to see successful conversion
from
Soliris
to
Ultomiris
across indications.
Rare neurology
Data presented at scientific congresses
throughout the year, including at the annual
meetings of the American Academy of
Neurology, the European Academy of
Neurology, and the European Committee for
Treatment and Research in Multiple Sclerosis
(ECTRIMS) reinforce the long-term safety
and efficacy profiles of
Ultomiris
and
Soliris
,
and demonstrates how these medicines can
transform outcomes for rare neurological
diseases, including gMG and NMOSD.
Generalised myasthenia gravis
gMG is a rare autoimmune disorder
characterised by loss of muscle function
and severe muscle weakness. We advanced
our pioneering leadership in complement
inhibition with positive high-level results
from the PREVAIL Phase III clinical trial of
gefurulimab in adults with AChR-Ab+ gMG.
Gefurulimab, an investigational complement
C5 inhibitor, is a novel dual-binding
nanobody optimised for subcutaneous
self-administration.
Data presented from the PREVAIL Phase III
clinical trial at the Myasthenia Gravis
Foundation of America Scientific Session
during the American Association of
Neuromuscular & Electrodiagnostic
Medicine Annual Meeting in San Francisco,
California showed that gefurulimab met its
primary endpoint, demonstrating a
statistically significant and clinically
meaningful improvement in Myasthenia
Gravis Activities of Daily Living at week 26
with clinically meaningful improvement seen
as early as week one in adults with AChR-
Ab+ gMG. PREVAIL also met all secondary
endpoints, including change from baseline
in Quantitative Myasthenia Gravis total
score at week four and week 26.
Neuromyelitis optica spectrum disorder
NMOSD is a rare and debilitating
autoimmune disease characterised by
unpredictable relapses that can lead to
permanent disability. Data presented at
ECTRIMS demonstrated zero adjudicated
on-trial relapses in adults with AQP4
-Ab+
NMOSD treated with
Ultomiris
through the
median follow-up of 170.3 weeks in the
CHAMPION-NMOSD Phase III trial.
Rare haematology, nephrology
and transplant
Rare nephrology
Phase III trials of
Ultomiris
in immunoglobulin
A (IgA) nephropathy, cardiac surgery-
associated acute kidney injury, and delayed
graft function are also ongoing.
IgAN is a rare CKD that begins when the
body develops abnormal IgA proteins that
result in the build-up of immune complexes
in the kidneys, causing damage. This can
impact the ability of the kidneys to function
properly, resulting in CKD that can progress
to end-stage kidney disease. Approximately
25-30% of people with IgAN will progress to
end-stage kidney disease, or kidney failure.
Haematopoietic stem cell transplant-
associated thrombotic microangiopathy
(HSCT-TMA)
Ultomiris
is also being investigated in
disease areas in which the complement
pathway is thought to play a role. We
conducted the largest global Phase III
programme across a broad population
of patients with HSCT-TMA, a severe
and potentially life-threatening complication
that can occur following HSCT. Initial results
from the Phase III open-label trial of
Ultomiris
in paediatric patients with TMA after HSCT
demonstrated clinically meaningful OS at
26 weeks. Our Phase III trial evaluating
Ultomiris
in adults and adolescents with
HSCT-TMA is ongoing.
Diversified pipeline across diseases
with significant unmet medical need
We advanced a diverse pipeline across
additional disease areas with significant
unmet medical need.
Amyloidosis and rare cardiology
Amyloidosis is a group of complex rare
diseases caused by abnormal proteins that
misfold and clump together to form amyloid
that deposits in tissues or organs, including
the heart, which can result in significant
organ damage and organ failure. Across the
enterprise, we are advancing a fast-growing,
industry-leading pipeline across a broad
range of modalities, and in Rare Disease
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continued
Efzimfotase alfa is an investigational enzyme
replacement therapy designed to replace
the deficient ALP enzyme activity as a
self-administered, subcutaneous treatment
optimised for dosing every two weeks to
help address the current treatment burden
and reach more patients living with HPP.
Results from three Phase III studies
HICKORY, CHESTNUT and MULBERRY, are
expected in the first half of 2026. Together
these trials cover patients across paediatric,
adolescent and adult HPP populations.
Hypoparathyroidism (HypoPT)
HypoPT is a rare endocrine disease caused
by a deficiency of parathyroid hormone (PTH)
and characterised by impaired regulation of
calcium and phosphate levels in the blood.
Eneboparatide, an investigational PTH
receptor 1 agonist, met the primary endpoint
of normalising serum calcium in adults with
HypoPT at 24 weeks in the CALYPSO Phase III
trial. Analysis of the 52-week results from
the CALYPSO trial, to further characterise
eneboparatide, are ongoing. We will
continue monitoring these patients in the
open-label extension.
Rare tumours
Neurofibromatosis type 1 plexiform
neurofibromas
NF1 is a rare, progressive and genetic
condition usually diagnosed in early
childhood, but often progressing into
adulthood, that can impact every organ
system. Up to 50% of people living with NF1
may develop non-malignant tumours called
PN that may affect the brain, spinal cord and
nerves. PN may appear later in a person’s life
and can grow and become large, leading to
pain, disfigurement and muscle weakness,
among other debilitating symptoms.
Koselugo
(selumetinib) is a kinase inhibitor
that blocks specific enzymes that are
overactive in people with NF1, causing
tumour cells to grow. By blocking these
enzymes,
Koselugo
slows down the growth
of tumour cells and, therefore, the PN growth.
In 2025, we expanded the reach of
Koselugo
beyond certain paediatric patients with NF1
PN with its approval in Japan, the EU, the US
and other countries for the treatment of adult
patients with NF1 who have symptomatic,
inoperable PN based on data from the
KOMET Phase III trial, the largest and only
placebo-controlled global Phase III trial in
this patient population. In addition, a granular
formulation of
Koselugo
was approved in
Japan, the EU, the US and other countries,
providing an option for young patients who
may have difficulty swallowing a capsule.
Additional regulatory reviews are ongoing.
Rare cancers
Rare cancers account for approximately
a quarter of cancer deaths and have a lower
five-year survival rate than most common
cancers, representing a significant unmet
medical need. We are partnering with
colleagues across AstraZeneca to follow
the science and identify opportunities
where we intend to leverage our expertise
and infrastructure to deliver transformative
outcomes for patients.
Next wave innovation
We are partnering across therapy areas to
advance an industry-leading suite of
genomic medicines, cell therapies, small
molecules, and next-generation biologics,
with the objective to match innovative
modalities to meet specific needs of patients
with rare disease.
We initiated a Phase I/II clinical trial to
evaluate ALXN2350, a potentially first-in-
class gene therapy, in adults with BAG3-
associated DCM (Bcl-2-associated
athanogene 3- dilated cardiomyopathy),
a rare cardiomyopathy.
In addition, the Phase Ib/II study of AZD0120,
a CAR-T cell therapy targeting CD19 and
BCMA, was initiated in patients with relapsed
or refractory AL amyloidosis, expanding the
reach of this asset into rare disease.
We continue to build a diversified pipeline
by targeting new pathways and leveraging
an array of innovative modalities. We are
pioneering the next wave of innovation in
complement inhibition in early-stage clinical
trials, including ALXN1920, a kidney-
targeted factor H fusion protein in primary
membranous nephropathy, and ALXN2030,
a siRNA targeting the complement C3
protein, in antibody mediated rejection, both
in Phase II clinical trials. In addition, we
initiated Phase II clinical trials evaluating
tarperprumig, a complement factor P
(properdin) inhibitor, in anti-neutrophil
cytoplasmic antibody-associated vasculitis
and ALXN2420, a growth hormone receptor
antagonist in acromegaly, respectively.
In addition, we are collaborating to advance
AI medical devices for early, accurate
detection of rare diseases, including early
detection of HPP in adults through an AI
clinical decision support system, and
FDA-cleared for cardiac amyloidosis
detection during routine echocardiography
assessment.
A commitment to health equity
in rare disease
Being born with a rare disease is inherently
inequitable. Further, the economic impact
of rare diseases includes not only costs
incurred by patients and healthcare systems
but also the reduced earnings, productivity,
or career opportunities of people living with
a rare disease and their caregivers. We are
committed to action to overcome societal
and policy barriers and to advance health
equity for people living with rare diseases.
Together with health systems, governments
and advocates, we are shaping the policy
and care landscape the rare disease
community needs.
It can take more than five years for a rare disease patient to get the right diagnosis.
Advances in newborn genomic sequencing and AI diagnostics are accelerating rare
disease diagnosis and improving health equity.
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Delivering our strategic priorities
sustainably, supporting scientific
innovation and promoting
commercial excellence.
Our business is organised to deliver our Growth Through
Innovation strategy. The success of our functions is built
on recruiting, retaining and developing talented people.
We are focused on science and innovation,
from discovery through to development
and life-cycle management, and on
transforming care and outcomes for
patients. We have three therapy area-
focused R&D organisations – Oncology,
BioPharmaceuticals, and Rare Disease.
We are focused on launching medicines
that deliver sustainable growth and
realising the potential of our pipeline.
Our Commercial regions align product
strategy and commercial delivery while
our Operations function manufactures
and delivers our medicines.
We are committed to our people,
ensuring that AstraZeneca remains a
great place to work. We promote health
equity and resilient healthcare, and play
an active role in addressing the climate
crisis. We operate in a responsible and
sustainable way to build a healthy future
for people, society and the planet.
Key topics covered
Summary and performance indicators
Research & Development
Sustainable innovation
Development pipeline overview
Patient safety and product quality
Key topics covered
Summary and performance indicators
Our regions
Operations
Business conduct
Digital technologies
Cybersecurity and data privacy
Business development
Key topics covered
Summary and performance indicators
People
Sustainability
Accessible and affordable healthcare
Climate change
Nature
Our key topics covered include
material sustainability topics,
which have been identified
through our double materiality
assessment, see page 40 for
more information.
Science and
Innovation
People and
Sustainability
Growth and Therapy
Area Leadership
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Global reach and presence
96,100
employees
(2024: 94,300)
43
countries of origin
represented in
executive levels
(2024: 44)
Strategic R&D centres
We have six strategic R&D
centres including a growing
presence in China with the
opening of our Beijing R&D
centre in 2025, advancing our
effort to deliver life-changing
medicines globally.
Operations
Manufacturing supports
business growth and pipeline
development, maintaining
excellence in product launch,
quality and supply.
People
We have a global commitment
to inclusion and diversity.
16,100
R&D employees
across our global sites
(2024: 15,200)
Global hubs
Our network of 10 global
hubs is focused on translating
our cutting-edge science into
real-world impact.
47,400
Commercial employees
(2024: 47,200)
217
successful on-time
market launches
(2024: 202)
16,900
employees across our
manufacturing sites
(2024: 16,300)
Employees by reporting region
2
1
Three under construction.
2
Categorisation of employees has been updated to align with our financial reporting
regions, as defined on page 32. Due to rounding, the sum of subtotals and percentages
may not agree to totals.
Key
6 Strategic
R&D centres
10 Global hubs
31 Operations sites
in 15 countries
1
Cambridge
Boston
Beijing
Gothenburg
Gaithersburg
Shanghai
17,900 (19%)
US
7,400 (8%)
Established
Rest of World
34,000 (35%)
Europe
36,800 (38%)
Emerging Markets
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16
16
NME Phase II starts/progressions
2025
2024
2023
16
10
6
22
22
NME and major LCM pivotal
Phase II/III investment decisions
2025
2024
2023
22
14
24
54
54
NME and major LCM submissions
2025
2024
2023
54
43
31
43
43
NME and major LCM approvals
2025
2024
2023
43
31
25
Science and Innovation
Performance indicators
Our performance indicators include the
measurement of Phase II and III pipeline
progressions, which are critical for ensuring
both near- and long-term delivery. The
initiation of Phase II NMEs is essential for
maintaining the robustness and stability
of our pipeline. Meanwhile, investments in
Phase III are focused on delivering near-term
value. Additionally, our submission and
approval metrics serve as indicators of our
advancement in four major markets: the US,
EU, China and Japan.
Research & Development
In 2025, we continued to progress
our science and pipeline, committed
to early diagnosis and treatment,
improving our understanding
of disease biology and advancing
our scientific modalities across
disease areas.
Summary and
performance indicators
We are using our scientific
capabilities and focusing
on transformative science to
accelerate the delivery of high-
quality, life-changing medicines.
Our performance in 2025
•
Invested $14.2 billion in our R&D.
•
One NME first approval, taking us
to nine NMEs delivered against our
Ambition 2030.
•
97 regulatory events and 38 pipeline
progressions.
•
197 pipeline projects, of which 176 are
in the clinical phase of development.
•
Published 718 manuscripts with
135 in ‘high-impact’ journals.
•
Since 2019, the number of R&D
employees in China has grown
significantly from over 300 to
more than 1,200.
Enhancing our understanding
of disease biology
Advancing our understanding of disease
biology is helping uncover novel drivers for
the diseases we aim to prevent, treat and
even cure. Selecting the right target remains
the most important decision in drug discovery.
2025 developments:
•
Achieved 40% representation of individuals
with non-European genetic ancestries
in our human genomic datasets, driving
several high-impact publications that
demonstrate the importance of diversity
in genetic research.
•
Delivered industry-leading genomic
insights while remaining sustainable,
redesigning algorithms that cut CO
2
emissions and compute time by 99.8%
compared to global standards.
•
Launched partnership with Illumina and
industry partners to generate a 1-billion
cell atlas, accelerating novel target
discovery and expanding AI training
data 1,000-fold through improved
disease understanding.
•
Established landmark 10-year partnership
with the University of Gothenburg, Knut
and Alice Wallenberg Foundation, and
Region Västra Götaland to tackle obesity
and metabolic diseases including a
new Gothenburg-based research
professorship launching in 2026.
Creating the next generation
of therapeutics
We continue to advance our intentionally
diverse portfolio of therapeutic modalities
across disease areas, including cutting-edge
platform technologies for innovative small
molecules, biologics and genomic medicines.
2025 developments:
•
Advanced our proprietary antibody drug
conjugates (ADCs) with Phase I clinical
data for torvu-sam (FRα) in ovarian cancer
presented at ESMO and first subject in for
the pivotal BLUESTAR-Endometrial01 trial
with puxi-sam (B7
-H4)s.
•
Data published in Nature Communications
describes our novel platform for enabling
next-generation engineered TCR
-T
therapies based on high-throughput TCR
discovery from diagnostic tumour biopsies.
•
Expanded AZD0120 (BCMAxCD19 dual
targeting) autologous CAR T-cell therapy
programme across oncology, immunology
and rare diseases with clinical data
presented at The American Society
for Hematology (ASH) Annual Meeting
from our first US trial demonstrating
high complete response rates in multiple
myeloma and an encouraging safety
profile. AZD0120 expansion continued
in systemic lupus erythematosus with
Phase I starts and Investigator Initiated
data presented at the European Alliance
of Associations for Rheumatology and the
American College of Rheumatology, as
well as Phase I starts in multiple sclerosis,
40
%
Discovery and
early-
stage development
60%
Late-stage development
Research & Development spend
28
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Sustainability Statement
Additional Information
Financial Statements
Strategic Report
Business Review
Business Review
continued
a basket study in rheumatoid arthritis
systemic sclerosis and idiopathic
inflammatory myopathies, and rare diseases
including amyloid light-chain amyloidosis.
•
Advanced pipeline of CD8+ guided
modalities, designed for more selective
tumour-targeting with multiple disclosures
including AZD9793 (GPC3 T-cell engager)
and AZD6750 (CD8+ IL-2 immunocytokine).
•
Acquired EsoBiotec to accelerate our in
vivo cell therapy build through their ENaBL
platform capabilities.
•
Entered into an agreement with Jacobio
Pharma for JAB-23E73, a clinical
-stage
oral small molecule pan-KRAS inhibitor,
with potential in pancreatic, colorectal
and non-small cell lung cancers.
•
Advancing genomic medicines into the
clinic: gene therapy for BAG-3
-related
dilated cardiomyopathy and first siRNA
therapy targeting complement C3 for
antibody-mediated rejection after kidney
transplantation, alongside expanded
collaboration with JCR Pharmaceuticals
and investment in Yoltech Therapeutics.
•
Progressed several novel molecular
entities within CVRM into Phase I clinical
trials, including AZD1613 (PAPPA-1) for
autosomal dominant polycystic kidney
disease, AZD3974 (anti-inflammatory
and anti-fibrotic mechanism) for cirrhosis,
AZD4248 (NNMT)
for cardiorenal disease,
AZD4954 (Lp(a)) for dyslipidemia, and
AZD4063 (PLN)
for PLN R14del dilated
cardiomyopathy, the first cardiac-targeted
siRNA to reach clinical trials.
•
Entered the acute kidney injury space with
AZD4144 (NLRP3), which has completed
Phase I and is now advancing to Phase II.
•
Strengthened weight management portfolio
through the acquisition of SixPeaks Bio,
including early-stage assets that aim
to preserve lean mass, modulate body
composition and improve metabolic function
by targeting activin signalling pathways.
Better predicting clinical success of
our candidate drug molecules
We are adopting a range of cutting-edge
technologies, generating data that are more
relevant to patients than previous methods,
to help us predict the clinical effectiveness
of our candidate drug molecules.
2025 developments:
•
Established three-year collaboration
with Sahlgrenska University to further
our current adipose tissue research
capabilities to support healthy weight
loss programmes aiming to address
adipose tissue dysfunction.
•
In collaboration with Roche Tissue
Diagnostics and Daiichi Sankyo, received
FDA Breakthrough Device Designation
(BDD) for the VENTANA TROP2 RxDx
Computational Solution which incorporates
Quantitative Continuous Scoring, marking
the first BDD for an AI-driven companion
diagnostic.
•
Accelerated covalent drug discovery
through advanced technology and
strategic collaborations, including with
the Gygi Lab at Harvard Medical School,
to target previously undruggable proteins
across multiple therapeutic areas.
•
Established strategic AI collaborations
with Tempus and Pathos to develop the
largest multimodal oncology foundation
model. We acquired Modella AI to advance
foundation models across oncology clinical
development, in addition to advancing
existing and new collaborations with
ImmunAI, Syneron Bio, Stanford Medicine
and Algen Biotechnologies – to complement
our robust internal AI capabilities and
enhance drug discovery and the
probability of clinical success.
•
Accelerated the identification of novel
small molecules, oligonucleotides and
biologics by applying AI technologies
to predict molecular properties before
synthesis so we can prioritise those
most likely to deliver patient benefit.
Pioneering new approaches to
engagement in the clinic
We are at the forefront of clinical innovation,
designing and delivering patient-centric
clinical trials that improve the patient and site
team experience while optimising the use
of data, digital technologies and AI.
2025 developments:
•
Advanced AI medical devices for early,
accurate detection of rare diseases,
including hypophosphatasia in adults
and FDA-cleared AI for cardiac amyloidosis,
through collaborations with Pangaea Data
and InVision.
•
Transformed clinical trial operations
across therapy areas through enhancing
AI-driven patient data collection and
digital consent, reducing consent form
length by 35%, migrating 19 studies to
new systems, and cutting processing
time from 10 weeks to two.
For more information on deals,
see Business development on
page 37, and for how AI is
transforming the way we work,
see Digital technologies on
page 36.
We are committed to early diagnosis and treatment,
improving our understanding of disease biology and
advancing our therapeutic modalities across diseases.
Corporate Governance
Sustainability Statement
Additional Information
Financial Statements
Strategic Report
29
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Annual Report & Form 20-F Information 2025
Business Review | Science and Innovation
56%
Oncology
10%
Rare Disease
0%
V&I
17%
R&I
17%
CVRM
12%
Rare Disease
58%
Oncology
2%
V&I
9%
R&I
19%
CVRM
Phase I
1
41
41
10%
Rare Disease
8%
V&I
48%
Oncology
18%
R&I
18%
CVRM
Phase II
1
40
40
7%
Rare Disease
0%
V&I
74%
Oncology
18%
R&I
1%
CVRM
Life-cycle management projects
2
73
73
Late-stage development
1
43
43
Development pipeline overview
2025 was another remarkable year.
We achieved 97 regulatory events,
either submissions or approvals for
our medicines in major markets,
including one NME first approval.
Sustainable innovation
Our ambition is to transform the lives
of patients with improved outcomes
and a better quality of life, through
more effective treatment and
prevention, ultimately working
towards a cure for some of the
world’s most complex diseases.
Accelerating our pipeline
We are prioritising our investment in specific
programmes, focusing on scientific innovation,
patient benefit and return on investment.
This has led to receiving twelve Regulatory
Designations for Breakthrough Therapy,
This success is supported by a robust
pipeline of promising medicines. We had
38 significant pipeline progression events,
including NME Phase II starts and pivotal
Phase II/III investment decisions, showcasing
our potential for sustainable growth.
Our pipeline comprises 197 projects, with
176 in the clinical phase of development.
We have 20 NME projects in pivotal trials
or under regulatory review, up from 19 at the
end of 2024. In 2025, 35 NMEs progressed
to their next development phase, while
20 projects were discontinued: 11 due
to safety or efficacy, eight due to strategic
shifts and one due to regulatory reasons.
Our Code of Ethics highlights our
commitment to science and innovation.
We conduct innovative research,
development and manufacturing to high
standards of ethics and integrity everywhere
we operate, following the laws, regulations,
codes, guidelines and good practice
standards related to safety, quality, research
and bioethics. Our drug discovery and
development is informed by our Product to
Patient Governance Pathway, which details
a rigorous scientific and strategic framework
for portfolio decision making and development
from Candidate Drug Investment Decision
to Health Authority approval.
Sustainable innovation
We strive to deliver new treatments that
address unmet medical needs while
navigating potential setbacks or delays in
bringing therapies to market. We are focused
on accelerating the delivery of life-changing
medicines that create enduring value,
pushing the boundaries of science to
discover innovations that transform and
sustain health.
Intellectual property
Intellectual property rights are essential to
sustaining the incentives our industry needs
to invest in R&D that leads to new medicines.
Drug development is inherently long,
uncertain and costly, particularly when
accounting for the high rate of failure.
Early in R&D, thousands, and in some areas
millions, of compounds may be screened to
identify the few with the potential to become
safe, effective therapies and ultimately
secure regulatory approval. A robust system
for obtaining, maintaining and enforcing
patents is a critical pillar of a sustainable
innovation ecosystem.
We provide transparency about where our
patents are filed and enforced. Where we
maintain patent protection for assets which
may have relevance to Access to Medicine
Index diseases, we provide patent identity
and expiry information.
Priority Review, Accelerated or Fast Track
for 10 new medicines which offer potential
to address unmet medical need in certain
diseases. We also secured Orphan Drug
Designation for the development of three
medicines to treat rare diseases.
For more information, see:
Our Strategy and Key Performance
Indicators, including the number of
approved NMEs, regulatory events
and pipeline progression events,
pages 10 and 11.
Therapy Area Review, including key
actions in 2025, pages 13, 17 and 23.
For more information on our policies,
see pages 217 and 219.
For more information regarding key
products in our pipeline in China, the EU,
Japan and the US, see the Patent Expiries
of Key Marketed Products Supplement on
our website: www.astrazeneca.com/
annualreport2025. For more information
on IP, see our website: www.astrazeneca.
com/sustainability/resources.html.
For more information, see
Therapy Area Review from
page 12.
1
Includes NMEs and additional indications if the lead is not yet launched.
2
Only includes major LCM projects.
Science and Innovation
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Sustainability Statement
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Financial Statements
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Business Review
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continued
63
inspections from
all health authorities
relating to GMP
and GDP
10
product recalls
Zero
critical findings from
health authorities
relating to GMP
and GDP
Patient safety and product quality
Our business model requires the
supply of safe and high-quality
medicines, which are constantly
and carefully monitored during their
entire life-cycle. We are dedicated
to patient safety and base our
behaviours and decisions on our
belief that everyone deserves to have
confidence in the safety, quality and
efficacy of our medicines.
Pharmacovigilance
Our comprehensive pharmacovigilance
system constantly monitors all products
throughout their life-cycle, following global
regulatory requirements, GxP principles and
quality management standards. Safety
systems and processes are established for
all medicines, both in development and on
the market, to identify and assess potential
adverse drug effects. Dedicated safety
teams, including safety physicians and
pharmacovigilance scientists, provide safety
profile information to regulators, healthcare
professionals and patients as appropriate.
Our dedicated website for reporting adverse
events and requesting medical information
is available to healthcare providers and
patients. Personal data in adverse event
reports is pseudonymised according to legal
requirements, in compliance with our Privacy
Policy on the handling of personal information
during inquiries, complaints, or adverse
event reports. Ongoing training supports our
employees, contractors and contracted third
parties to report adverse events related to
our products or partner products, to comply
with regulations and contractual
requirements, and protect patients.
We enhanced our patient safety efforts
in 2025 by implementing a unified global
safety database for adverse event reporting
associated with both marketed products
and clinical trials. By sharing information
on a harmonised basis across the industry
and regulators, we can increase internal
efficiency and enhance patient safety.
In addition, during 2025 we implemented
drug/project-specific Toxicity Management
Guides (TMGs) across clinical programmes
to support investigators in recognising and
managing toxicities during clinical trials.
TMGs provide clear instructions for dose
interruption, dose reduction and treatment
discontinuation, with recommendations
for ongoing monitoring and clinical
management aiming to promote enhanced
patient care and reinforce our commitment
to patient safety.
Product quality
Our Operations Quality function oversees
GMP and GDP compliance across clinical
and commercial manufacturing, testing
and distribution, including contract
manufacturing organisations, ensuring
product quality and regulatory adherence.
The function drives continuous improvement
of the quality management system through
corrective actions, risk management, internal
audits, and periodic quality management
reviews to maintain accountability and align
with operational responsibilities.
Product and process performance
assessments, based on relevant data and
customer feedback, are conducted to ensure
our products meet quality standards for
identity, durability, reliability, usability, safety,
efficacy and performance throughout the
product life-cycle. An issue management
process is in place to investigate and take
corrective actions or improvements to
address quality concerns affecting patients,
products, or processes in compliance with
regulations and within the appropriate time.
We ensure that the development, licensing,
manufacturing, distribution and monitoring
of active pharmaceutical ingredients (APIs),
medicinal products and devices comply with
international codes, Good Pharmaceutical
Practices (GxP) including GMP (Good
Manufacturing Practice), GDP (Good
Distribution Practice) and Good
Pharmacovigilance Practices, and our own
Good Regulatory Practice. We continuously
monitor the safety, quality and efficacy of
our medicines throughout their life-cycle
to maintain product confidence.
We ensure patient safety through key
policies and standards such as our Code
of Ethics, Quality Policy, Quality Standards
and GxP. We are also a member of the
Biotechnology Innovation Organization,
International Federation of Pharmaceutical
Manufacturers and Associations, the
European Federation of Pharmaceutical
Industries and Associations, the
Pharmaceutical Research and Manufacturers
of America and the Association of the British
Pharmaceutical Industry, and adhere to
their industry codes.
For more information on our
policies, see pages 217 and 219.
We are dedicated to patient safety and base
our behaviours and decisions on our belief that
everyone deserves to have confidence in the
safety, quality and efficacy of our medicines.
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Financial Statements
Strategic Report
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Actual growth
CER growth
$25,450m
$23,235m
$19,077m
2025
2024
2023
US
$25,450
m
$25,450
m
Actual growth
CER growth
Europe
$12,739m
$12,188m
$9,611m
2025
2024
2023
$
12,739m
12,739
Actual growth
CER growth
Emerging Markets
$
15,303m
15,303
$15,303m
$13,675m
$12,025m
2025
2024
2023
Actual growth
CER growth
Established RoW
$5,247m
$4,975m
$5,099m
2025
2024
2023
$
5,247m
$
5,247m
Actual growth
2025 +10%
2024 +22%
2023 +6%
CER growth
2025 +10%
2024 +22%
2023 +6%
Actual growth
2025 +5%
2024 +27%
2023 +10%
CER growth
2025 +1%
2024 +26%
2023 +8%
Actual growth
2025 +12%
2024 +14%
2023 +2%
CER growth
2025 +14%
2024 +22%
2023 +9%
Actual growth
2025 +5%
2024 -2%
2023 -14%
CER growth
2025 +6%
2024 +3%
2023 -8%
Growth and Therapy Area Leadership
Summary and
performance indicators
We grow our business and serve
more patients globally by working
ethically, maintaining excellence
in manufacturing and supply,
and through the use of AI and
new technologies.
Our performance in 2025
•
Total Revenue, comprising Product Sales,
Alliance Revenue and Collaboration
Revenue, increased by 9% (8% at CER)
to $58,739 million.
•
Committed to high ethical standards: 434
employees and third parties were removed
from their role as a result of a breach.
•
Delivered 217 successful on-time market
launches.
Performance indicators
Global Total Revenue by geography
Our products are primarily marketed to
primary and specialist care physicians.
Healthcare in a Changing World on page 6
outlines the trends the pharmaceutical
sector is facing. In response, governments
are increasingly focused on strategic
autonomy, driven by concern over national
security, crisis preparedness, economic
competitiveness and sovereignty in key
sectors. There is also strong pressure to
build resilient supply chains. During 2025,
the pharmaceutical sector faced increased
trade tensions and drug pricing policy
changes in the US that have had global
implications, including for other wealthy
nations that spend a lower share of their
GDP on innovative medicines than the US.
The US spends a far larger share of its
income on new innovative medicines than
other high-income OECD countries, and
measures are being taken by the US
administration to ensure wealthy nations
make equitable contributions to global
biopharmaceutical R&D.
Commercial context
We drive growth and profitability through
commercial excellence in each of the three
regions into which we are organised: the US,
Europe-Canada and International (which
comprises Australia, New Zealand and
Emerging Markets including China). Japan
reports separately. Our financial reporting
regions are the US, Europe, Established
Rest of World (RoW) and Emerging Markets,
which are defined below.
We have an active presence in more than
80 countries and sell our products in more
than 125 countries. In most markets, we sell
our medicines through wholly-owned local
marketing companies, as well as distributors
and local representative offices.
US
Total Revenue increased by 10% in 2025
to $25,450 million, driven by the continued
demand growth of our medicines.
The US healthcare system is complex.
Multiple payers and intermediaries influence
patient access to branded medicines through
regulatory rebates in government
programmes and voluntary rebates paid to
private insurers for commercially insured
patients. Significant pricing pressure is
driven by payer consolidation, restrictive
reimbursement policies and cost control
tools which reduce patient access.
In October 2025, we announced an agreement
with the US administration to lower the cost
of prescription medicines in America. We
voluntarily agreed to a range of measures
that will enable the American healthcare
system and patients to access medicines at
prices that are equalised with those available
in other wealthy countries. We also reached
an agreement with the US Department
of Commerce for a three-year exemption
Our regions
Our growth is delivered by our
Commercial teams, which employed
47,400 people at the end of 2025.
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Sustainability Statement
Additional Information
Financial Statements
Strategic Report
Business Review
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continued
trade and tariff uncertainty, driving cost
pressure and friction at borders.
Simultaneously, conflicts and instability in
key regions forced rapid route reconfiguration
and heightened the need for robust business
continuity planning. Against this backdrop,
we have continued to meet our responsibilities
to patients by executing with excellence.
We sustained high customer service,
protected supply, ensured quality, launched
new products on time, and built capacity
and resilience to secure sustainable growth.
Supply chain finance
Our supply chain finance programme
supports the cash flow of our external
supply base. The programme is managed
by Taulia LLC (with funding provided by
some of the Group’s relationship banks)
and provides suppliers with visibility of
invoices and payment dates via a dedicated
platform. Suppliers can access this platform
free of charge and have flexibility to select
individual invoices for early payment. For
further details, see Note 20 to the Financial
Statements, on page 159.
Global manufacturing capability
Our principal tablet and capsule formulation
and packing sites are in the UK, Sweden,
China, Puerto Rico and the US, with local
supply sites in Egypt, Japan and Russia, and
regional supply sites in Brazil, Indonesia and
Mexico. We also have major formulation sites
for the global supply of parenteral and/or
inhalation products in the US, Sweden,
France, Australia and the UK. Most of the
manufacture of APIs is delivered through
the efficient use of external sourcing that is
In 2025, we made strong progress against
our Operations strategic goals, expanding
capacity and new modality capability,
while leveraging new technology and AI
innovations to sustainably support the
demands of the business.
•
We delivered 217 successful on-time
market launches across markets.
•
We progressed our investments in
manufacturing footprint, technology
and AI innovations.
•
Our Operations function achieved
an 89% reduction in its Scope 1 and 2
GHG emissions, a 24% reduction in
water use, and a 23% reduction in
waste against a 2015 baseline.
Managing our supply chain
In a year marked by elevated geopolitical
and macroeconomic turbulence and
capacity shortages, the external
environment tested supply chains globally.
Drug shortages reached record levels,
weather-related disruptions intensified,
quality challenges persisted industry-wide,
and geopolitical events now encompass
complemented by expanding use of internal
capabilities. For biologics, our principal
commercial manufacturing facilities are
in the US, Ireland, Sweden, the UK and the
Netherlands. Our network contains
capabilities in process development, drug
substance and drug product manufacturing,
and distribution.
In July 2025, we announced our intention
to invest in a $4.5 billion new manufacturing
facility in Charlottesville, Virginia, US. The
new facility will produce drug substances
for AstraZeneca’s weight management and
metabolic portfolio, as well as our leading
ADC cancer portfolio. The facility will be
at the forefront of technological innovation,
leveraging AI, automation and data analytics
to optimise production. In November 2025,
we announced a further $2 billion expansion
of our manufacturing footprint in Maryland,
US. Our investment in our existing Frederick
Biologics facility will double capacity.
Additionally, we will build a new facility
in Gaithersburg, US, to produce medicines
for clinical supply.
In May 2025, manufacturing ceased at our
tablet facility in Bangalore, India. The intent
to exit was announced in November 2023.
At the end of 2025, we employed 16,900
people at 31 Operations sites
1
in 15 countries.
Operations
Our manufacturing and supply
function continued to support
business growth and pipeline
development, maintaining excellence
in product launch, quality and
resilient supply, with focus on
progressive, sustainable processes.
of Section 232 tariffs on medicines imported
to the US, enabling the Group to onshore
medicines manufacturing so that substantially
all of its medicines sold in the US are made
in the US. For more information, see Global
manufacturing capability below.
The Inflation Reduction Act (IRA) of 2022
was passed to address Medicare spending
concerns.
Farxiga
was selected for the first
round of Medicare price negotiations under
the IRA. As the Maximum Fair Price for
Medicare has now taken effect in 2026,
coinciding in the same year as the expected
US loss of market exclusivity that will also
reduce
Farxiga
’s price, the overall impact is
expected to be manageable.
Calquence
was selected for the second
round of price negotiations in 2025. Its
Maximum Fair Price for Medicare will take
effect in 2027. Our diversified product
portfolio, providing a broad spectrum
of treatments across therapy areas, well
position us to mitigate business impact.
Emerging Markets
Total Revenue in Emerging Markets,
predominantly comprising countries
in Latin America, the Middle East, Africa
and Asia, was $15,303 million, up
12% (14% at CER). In 2025, Total Revenue
for China increased by 4% (4% at CER)
to $6,654 million (2024: $6,413 million).
Ex-China Emerging Markets Total Revenue
grew by 19% (22% at CER), with continued
increases across all therapy areas.
Following the Russian invasion of Ukraine
in February 2022, we continue to provide
practical support to ensure the safety,
health and wellbeing of our employees.
As a healthcare business, we are doing
everything possible to ensure medical
supply chains continue to operate and that
patients in both countries are able to access
our medicines, while complying with
sanctions imposed on Russia.
Europe
Total Revenue was $12,739 million, up 5%
(1% at CER), with continued growth in
Oncology and BioPharmaceuticals.
Established RoW
Established RoW comprises Japan, Canada,
Australia and New Zealand. In 2025, Total
Revenue increased by 5% (6% at CER) to
$5,247 million, with sales in Japan up 6%
(5% at CER) to $3,768 million. Growth
was driven by strong performance from
Oncology and Respiratory & Immunology
medicines.
1
Excluding clinical supply sites.
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Annual Report & Form 20-F Information 2025
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Sustainability Statement
Additional Information
Financial Statements
Strategic Report
Business Review | Growth and Therapy Area Leadership
Growth and Therapy Area Leadership
Our Code of Ethics (the Code) and its
supporting Standards are the foundation
of our global compliance programme.
They embody our Values, including
expected behaviours, principles and
policies. Following the Code and supporting
requirements, we deliver lasting benefits
to patients and other stakeholders.
AZ Ethics
The Code asks employees to report possible
violations and provides information on how
to do so. This includes via the AZ Ethics
helpline and website, which are also
available to third parties, as well as our
Company intranet site and social media
platform. This is also included in the annual
Code of Ethics training.
We continue to foster a culture where
employees can speak their minds, with
strong first-line oversight (and related
reporting) as well as targeted second-line
monitoring to identify concerns early and
use learnings to improve our programme.
Our Pulse survey enables management
and the Board to understand the views and
sentiments of our employees, including the
proportion of employees who feel comfortable
speaking up at work. The resulting report
also demonstrates how our Values and
behaviours are embedded across the
workforce, including a summary metric
dashboard organised by category, with
remedial action taken on any concerns
identified and discussed as necessary. We
also see regular usage of reporting channels
across markets, evidencing that individuals
are aware of how to report concerns.
Reporting can be done anonymously, where
permitted by local law, through our helpline
or via line managers or relevant functions
such as Compliance or HR, who will carry
out an investigation. Issues raised via AZ
Ethics are triaged and assigned accordingly
for action, with cases tracked and monitored
for completion. Anyone who raises a
potential breach in good faith is fully
supported by management in confidence
(subject to disclosure obligations in local
markets) and we do not tolerate retaliation.
Any whistleblower can report violations
inside and outside the organisation (to the
designated authority or the media), with the
same level of protection, regardless of the
means of reporting. The most serious
incident reports from whistleblowers – those
implicating senior leaders or involving other
allegations of serious misconduct (including
alleged bribery or corruption) – are promptly,
independently and objectively investigated
by our Global Compliance Investigations
(GCI) team, an above-market investigatory
unit within the Global Compliance function.
Investigators are part of Compliance or HR
and are not associated with the reporters
or the implicated parties. In the event that
someone within the Compliance or HR
function is the subject of an investigation,
the matter is managed by someone not
involved with the implicated party and in
certain cases, a third party may be retained
to conduct the investigation. AZ Ethics is
compliant with Directive (EU) 2019/1937 of
the European Parliament and of the Council.
There were 4,441 instances (instances can
involve multiple people) of employee and
third-party non-compliance with our Code
of Ethics. A total of 434 employees and third
parties were removed from their role
as a result of a breach and 1,810 received
warnings. Breaches primarily consist of
low-impact incidents.
Anti-bribery and anti-corruption
Adhering to high standards of business
conduct and anti-bribery and anti-corruption
(ABAC) principles is critical for us to meet
global regulatory requirements, preserve
ethical integrity, and safeguard stakeholder
trust. We do not tolerate bribery or any
other form of corruption. Preventing bribery
and corruption is a focus of our third-party
risk management and due diligence
processes, as well as our monitoring
and audit programmes.
Our Anti-Bribery and Anti-Corruption Global
Standard, which was updated in 2025,
outlines our key ABAC principles and is
complemented by additional Global Standards
and local requirements. Through our Global
Compliance programme and associated
policies and other controls, we strive to
comply with all applicable ABAC legislation,
including the UK Bribery Act 2010, which is
aligned with the United Nations Convention
against Corruption.
Our annual Code of Ethics training includes
content around ABAC. The 2025 Code of
Ethics training module also included content
relating specifically to fraud in alignment
with the new Failure to Prevent Fraud
Offence in the UK Economic Crime and
Corporate Transparency Act. Additionally,
there were enhancements made to the
Code to emphasise the need to remain
vigilant around potential fraud. In 2025,
100% of active employees, including the
SET and at-risk functions, completed
mandatory annual training on the Code.
Where risks of bribery and corruption are
higher e.g. Commercial teams, the Group
provides additional training and resources,
see below.
Responsible sales and marketing
Responsible sales and marketing practices
are essential for us to maintain compliance
with stringent regulatory frameworks, protect
patient safety, and foster trust with healthcare
professionals and the public. By adhering
to ethical standards and all relevant laws,
we ensure that our products are promoted
transparently and in line with global
healthcare expectations. We emphasise
transparency, integrity and accountability
in our operations, ensuring that our marketing
strategies accurately reflect the efficacy and
safety of our products.
At AstraZeneca, responsible sales and
marketing practices are embedded in our
Code of Ethics, Global Standards on ABAC
and Promoting our Products, and our
patient-centric Values.
Our compliance professionals advise on, and
monitor adherence to, our Code and policies,
and work with local staff to ensure we meet
our high ethical standards. Nominated
signatories review product promotional
materials and activities to ensure compliance
with applicable regulations and codes of
practice, and that information is accurate
and balanced. Group Internal Audit (GIA)
conducts risk-based audits of marketing
companies and other business units.
Business conduct
We seek to create positive societal
impact beyond the direct benefit of
our life-changing medicines. We
embed ethical behaviour in all our
business activities, markets and
across our value chain. We promote
ethical, transparent and inclusive
policies, both internally and with
our partners and suppliers.
For information on reporting
to the Board, see page 73.
For information on material
government investigations or
proceedings, including material
investigations related to
anti-bribery and anti-
corruption, see Note 30 to the
Financial Statements on pages
185 to 188.
For information on our Code of
Ethics, Global Standards on
ABAC and Promoting our
Products, see page 219.
34
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Annual Report & Form 20-F Information 2025
Corporate Governance
Sustainability Statement
Additional Information
Financial Statements
Strategic Report
Business Review
Business Review
continued
Our Code of Ethics training continues to have
a pathway tailored for our customer-facing
Sales and Marketing employees with scenarios
relevant to the highest risks in their roles.
In 2025, we identified 10 confirmed external
breaches across our Commercial business.
Confirmed external breaches comprise
cases where AstraZeneca has been found
to violate a law, industry code, or regulation
by an external authority.
Animals in research
The responsible use of animals is a vital part
of biomedical research and product safety
testing, where suitable alternatives are not
available. At the centre of our commitment
to quality science and animal welfare are the
Replacement, Reduction and Refinement
of animals in research (the 3Rs). All animal
studies are undertaken in compliance with
all relevant local and national laws and
regulations, and with the principles of the
‘Guide for the Care and Use of Laboratory
Animals’ (Institute for Laboratory Animal
Research). Wherever possible, we work with
third parties accredited by the Association
for the Assessment and Accreditation
of Laboratory Animal Care International.
Animals were needed for in-house studies
138,356 times in 2025 (2024: 141,947), and
on our behalf in contract research studies
63,869 times (2024: 63,810). In total, over
97% were rodents or fish, with the majority
being mice (85%). The remainder is made
up of rabbits, camelids, ferrets, dogs, pigs,
non-human primates, chickens and sheep.
Dogs and non-human primates make up less
than 1% of the total. We do not conduct
research using wild-caught non-human
primates or great ape species, and we have
an animal welfare assurance programme
that ensures research conducted by third
parties meets our high standards. We are
committed to transparency and are
signatories to the Concordat on Openness
on Animal Research (UK), the Openness
Agreement on Animal Research and
Teaching (Australia/New Zealand) and
the United States Animal Research
Openness Agreement.
For information on material
commercial litigation and
government investigations or
proceedings, including material
matters related to responsible
sales and marketing, see Note 30
to the Financial Statements
on pages 185 to 188.
We promote ethical, transparent and inclusive policies,
both internally and with our partners and suppliers.
Corporate Governance
Sustainability Statement
Additional Information
Financial Statements
Strategic Report
35
AstraZeneca
Annual Report & Form 20-F Information 2025
Business Review | Growth and Therapy Area Leadership
Growth and Therapy Area Leadership
Digital technologies
AI is a force multiplier for our
strategy – accelerating innovation,
improving outcomes, and driving
productivity and efficiency – so we
can do more of what matters, faster
and with greater impact.
In December, we created a dedicated
Enterprise AI unit to bring together AI
expertise and accelerate the delivery of
Ambition 2030. Partnering with the business,
this team will advance a unified enterprise
AI transformation, prioritise and scale high
value initiatives, manage change effectively,
and unlock synergies that amplify impact.
In R&D, we are developing an ecosystem of
foundation models and AI agentic frameworks
to accelerate our drug discovery end-to-
end. This ecosystem will transform our
clinical development, leveraging our key
differentiator – our data. Examples include:
•
REINVENT, our small molecule discovery
platform now enables significant time
savings by predicting molecular properties
and optimising potential molecules before
synthesis and further development.
Over 90% of our small molecule discovery
pipeline is AI-enabled, with similar
approaches actively applied to other
areas, including biologics.
•
MILTON, integrates de-identified health
records with genetic and protein data to
develop models that can predict the risk
of more than 1,000 diseases, sometimes
10 to 15 years before they’re clinically
diagnosed.
•
Computational pathology solutions achieved
FDA Breakthrough Device Designation as
part of an AI-driven companion diagnostic,
and released multi-cancer, cross-target
QCS models, and identified promising
biomarkers in gastric cancer.
We are rapidly integrating AI into clinical
workflows from study design to site and
patient selection – enhancing scientific
decision-making and enabling broader,
diverse patient groups to participate without
compromising research quality.
In Commercial, partnering with leading
technology companies is enabling us to tackle
healthcare challenges. In over 20 markets,
more than six million AI-enabled chest x-rays
support early screening for high-risk lung
nodules, improving referral and diagnostic
pathways for possible lung cancer. In precision
diagnostics, we published an AI-driven
computational pathology validation study
that used advanced image analysis and
machine learning to evaluate HER2 in breast
cancer tissue. We are also deploying AI to
increase efficiency, optimise content creation
and enhance the relevance of physicians’
interactions.
In Operations, we are scaling AI to build an
intelligent, autonomous, sustainable supply
network that reduces lead times, drives
productivity, and cuts waste. Our synthetic
drug development timelines are shortened
thanks to our agentic AI platform which
integrates scientific knowledge and simulation
models. Our award-winning Digital Changeover
solution is deployed across 17 sites and over
95% of eligible packing lines. To ensure
uninterrupted supply, we are engineering
a resilient, self-healing supply chain using
predictive sensing and autonomous planning.
Underpinning our Enterprise AI transformation
is our risk-based AI Governance Framework
based on global laws, regulations and standards
for best practice, and ensuring responsible
use. It includes policies, processes, and
guardrails for building, buying, and using AI,
to manage risks while maximising the value
of AI. We continue to upskill our teams to
advance a digital first mindset and optimise
transformation at scale.
Zero
material
cybersecurity
incidents
Zero
material security
breaches involving
personal data
Cybersecurity and data privacy
Innovative technology platforms are
transforming the way we work, and
we have measures in place to address
the related cybersecurity and data
privacy risks, to the extent possible.
Significant disruption to our IT systems,
including breaches of data security or
cybersecurity or failure to comply with
applicable laws or regulations, could harm
our reputation and materially affect our
financial condition or ability to manufacture
and distribute medicines to patients. These
disruptions could potentially also negatively
affect our patients, employees and other
stakeholders.
Cybersecurity
Recognising the important role our employees
play in managing our cybersecurity risk,
we provide cybersecurity training, conduct
recurring phishing simulations and have
a Cybersecurity Culture and Awareness
programme including regular messaging
via internal communications. The annual
cybersecurity training is mandatory for all
active employees and is designed to reduce
risk and improve resilience. In 2025, new
content included emerging AI scenarios and
reinforced our new AI standards.
AstraZeneca launched a Disaster Recovery
Programme in 2025, focused on strengthening
the Company’s recovery capabilities and
response frameworks to support the resilience
of critical business applications. Continued
evolution is required to keep pace with
changing business demands and an
increasingly dynamic technology landscape
– ensuring recovery strategies, tooling, and
response practices remain current, scalable,
and consistently effective.
Data privacy
The Enterprise Data Office (EDO) has
established data governance practices that
are managed through a control framework
sponsored by our Enterprise Data Council
(EDC). The EDO strengthens and standardises
data governance, by partnering with other data
functions across the Company and acting as
a central hub for data management and
related regulatory compliance. This approach
also ensures that our data policies and
standards are streamlined, clear and effective.
In 2025, we released a new standard
operating procedure for the management
of personal data incidents and a revised
standard for data retention management.
These updates aim to reduce the likelihood
of personal data incidents.
Key privacy compliance concerns are reported
via the SET data governance boards, EDO,
EDC and appointed senior leaders. Breaches
and policy deviations can also be reported
to AZ Ethics via the helpline or website.
For information on how
cybersecurity and data privacy
are governed by our Code of
Ethics as well as the IT Security
Policy Framework and Data
Privacy Standard respectively,
see page 219.
36
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Annual Report & Form 20-F Information 2025
Corporate Governance
Sustainability Statement
Additional Information
Financial Statements
Strategic Report
Business Review
Business Review
continued
We proactively pursue opportunities to
harness leading science and innovation
while securing access to cutting-edge
technologies and products. This strengthens
the quality, effectiveness and productivity
of our R&D across therapy areas and expands
our innovative pipeline. Partnerships with
academic institutions, governments, peers
and biotechnology companies are critical
to keep us at the forefront of innovations
applicable across our portfolio and, ultimately,
inform patient treatment. They give us
access to key innovations in AI, precision
medicine, genomics, and digital technologies,
informing the development of optimal
treatments for patients.
Our global presence, balanced across
regions and disease areas, is supported
by more than 1,000 collaborations
worldwide and we have completed
several strategically important business
development transactions in 2025, some
of which are summarised on this page.
EsoBiotec
AstraZeneca completed the acquisition of
EsoBiotec and their Engineered NanoBody
Lentiviral (ENaBL) platform which delivers
genetic instructions to specific immune
cells, such as T-cells, to enable the
recognition and destruction of tumour
cells for cancer treatment, and to eliminate
autoreactive cells for potential application
in immune-mediated diseases. AstraZeneca
acquired all outstanding equity of EsoBiotec
for a total consideration of up to $1 billion,
on a cash- and debt-free basis, comprising
of an initial payment of $425 million at
closing, and up to $575 million in contingent
consideration linked to development and
regulatory milestones.
Strategic partnerships in China
A strategic collaboration has been
established with the Beijing Municipal
Government and the Beijing Economic-
Technological Development Area
Administrative Office including Harbour
BioMed and Syneron Bio. We will invest
$2.5 billion to establish manufacturing
capabilities and create our sixth global
strategic R&D centre in Beijing, supported
by major research and manufacturing
agreements that advance life sciences
in China, and follows our acquisition of
FibroGen China. The new centre is located
in the Beijing International Pharmaceutical
Innovation Park, proximate to leading
biotechs, research hospitals and the
Business development
Business development is an essential
part of our strategy and portfolio
prioritisation process, creating
additional value and helping
accelerate the delivery of new
medicines that address unmet
medical need.
National Medical Products Administration
with a focus on advancing early-stage
research and clinical development. The
centre will be enabled by a new state-of-
the-art AI and data science laboratory.
CSPC
In January 2026, we announced a proposed
strategic collaboration agreement in China
with CSPC Pharmaceuticals to advance the
development of multiple next-generation
therapies for obesity and type 2 diabetes
across eight programmes.
Alteogen
AstraZeneca entered into a licence
agreement with Alteogen Inc. for ALT-B4
a novel hyaluronidase utilising Hybrozyme™
platform technology to enable selected
subcutaneous oncology formulations,
offering significant time-saving benefits
for patients and healthcare systems.
Financial arrangements include milestone
payments and royalties.
SixPeaks Bio
Following the Series A financing and
collaboration agreement from 2024,
AstraZeneca has acquired the remaining
shares in SixPeaks Bio by using the buyout
option. The company has developed an
activin IIA/B receptor antibody for robust
preservation of skeletal muscle mass,
a next-generation obesity product.
We are maximising the use of AI and new technologies to
transform patient care. We have the potential to empower
patients to play an active role in their own treatment.
Corporate Governance
Sustainability Statement
Additional Information
Financial Statements
Strategic Report
37
AstraZeneca
Annual Report & Form 20-F Information 2025
Business Review | Growth and Therapy Area Leadership
Corporate Governance
Sustainability Statement
Additional Information
Financial Statements
People and Sustainability
Summary and
performance indicators
Recognising the strong connection
between business growth and
resilience, and the need to address
the major health challenges of our
time, we are focused on how we
deliver sustainable impact and how
we do business, underpinned by
science. We are guided by our Values
and invest in our people to create
long-term value, resilience and trust
by operating responsibly, ethically
and with robust governance.
Our performance in 2025
People
•
Received 1.2 million applications and
hired 19,000 employees (7,000 internal
and 12,000 external).
•
Over 5,800 employees participated
in a development programme.
•
51.5% of our senior middle management
roles and above are filled by women.
Sustainability
•
Updated our health equity strategy,
embedding health equity across science,
healthcare delivery and community
investment.
•
Continued to decarbonise our value chain,
including our own operations.
-88.1%
-77.5%
-67.6%
2025
2024
2023
Performance indicators
People
This priority is built on being a great place
to work, patient-oriented, advancing a
culture of lifelong learning, and achieving
inclusion and diversity goals.
Performance indicators
Sustainability
Achieving a healthier, more sustainable
future requires tackling the biggest
challenges of our time – from climate change
and nature loss to health equity and health
system resilience – and doing so in a way
that is ethical, transparent and inclusive.
1
Figures reflect market-based
accounting, and are inclusive of
biomethane certificates. See page 212
for methodology and definitions.
2
See page 218 for methodology
and definitions.
Great place to work
86%
believe that AstraZeneca
is a great place to work
(2024: 84%)
Patient-oriented
88%
believe that AstraZeneca
is patient-oriented
(2024: 87%)
Advance culture of
lifelong learning
81%
feel they have the opportunity
for personal development
and growth
(2024: 81%)
Ambition Zero Carbon
(Scope 1 and 2)
1
-88.1%
reduction of Scope 1 and 2 GHG
emissions from 2015 baseline year.
Enable an agile organisation
79%
believe AstraZeneca has been
successful at improving IT tools
and systems
(2024: 75%)
Achieve inclusion and
diversity goals
87%
feel they can be themselves
without worrying about
being accepted
(2024: 85%)
People positively
impacted
2
320 million
38
AstraZeneca
Annual Report & Form 20-F Information 2025
Corporate Governance
Sustainability Statement
Additional Information
Financial Statements
Strategic Report
Business Review
Business Review
continued
through onboarding surveys, exit interviews
and our global employee opinion survey,
Pulse. We encourage managers to listen to
the workforce by providing them with access
to the aggregated results for their teams.
Managers also have access to a reporting
tool to further support engagement across
their teams. To ensure we are transparent,
we share our global results with the Board,
the SET, line managers and employees.
We have a Global Employee Relations
team, working in partnership with
Legal, Compliance, HR and employee
representative groups, such as the European
Consultation Committee, Works Councils
and, where applicable, our nationally
recognised trade unions. Accountability
for these processes is with the Chief
Human Resources Officer and delegated
to members of the leadership team. On a
day-to-day basis, this is managed by senior
leaders. We also hear the views from our
Employee Resource Groups, which are
voluntary, employee-led groups open to
all employees.
Health and safety
We are committed to providing a work
environment that is both physically and
psychologically safe for everyone. Our
Global Safety, Health and Environment
(SHE) Standard describes our management
of and accountability for SHE. We do this
by embracing a culture of learning and
continuous improvement. We strive to
maintain or exceed compliance with all
company, legal and regulatory requirements
ensuring that we are welcome in the
communities in which we operate.
Developing skills and capabilities
We develop strategic capabilities through
development programmes and high potential
talent initiatives, supporting employees
ranging from early talent and individual
contributors to enterprise leaders. All
employees have access to our global
learning platform. AI-adoption is a key
aspect of achieving our strategic objectives
by accelerating decision making and
innovation. In 2025, more than 50,000
employees participated in our Thriving in
the Age of AI programme. We also continue
to embed coaching skills to enhance
performance and increase engagement.
To support our Values and understanding
of our material sustainability matters,
employees complete mandatory training
on topics including Code of Ethics, see
page 34, and Cybersecurity, see page 36.
These trainings help everyone understand
the responsibility to employ high ethical
standards when carrying out all aspects
of our business globally.
Inclusion and diversity
Our global commitment to inclusion and
diversity is woven into what we do, and is
reflected in our Values and the behaviours
that underpin them. Women comprise 54%
(approximately 52,000) of our global
workforce and men 45% (approximately
43,300)
1
. At the end of 2025, there were
seven women on our Board (50% of the
total). Five out of 10 SET members (50%
)
were women and five were men (50%).
Directors of the Company’s subsidiaries
comprised of 209 women (45%) and
256 men (55%)
2
.
Our Board of Directors and the SET
conduct quarterly reviews of our workforce
composition. This encompasses gender,
ethnicity and age representation among
other things.
We are committed to hiring and promoting
talent ethically and in compliance with
applicable laws. Our Code of Ethics and its
supporting Standards are designed to help
protect against unlawful discrimination on
any relevant grounds. The Code covers
recruitment and selection, performance
management, career development and
promotion, transfer, training, and reward.
We embrace the cognitive differences of
neurodivergent employees and support
employees with both seen and unseen
disabilities in line with their country-specific
laws and regulations. Where risk
assessments can be performed, we will
consider accommodating adjustments to
the working environment that support an
inclusive and safe workplace.
Our Global Standard for Inclusion and
Diversity sets out how we foster an inclusive
and diverse workforce where everyone feels
valued and respected because of their
individual abilities and perspectives. In 2025,
our inclusion and diversity efforts earned
recognition externally. We were featured in:
•
Forbes World’s Top Companies
for Women
•
Forbes World’s Best Employers
•
Financial Times, Diversity Leaders 2026
•
TIME World’s Best Companies.
People
We rely on our global workforce
to uphold our Code of Ethics and
behaviours in line with our Values,
to deliver our Ambition 2030 strategic
priorities and work to sustain and
improve short- and long-term
performance.
1
Approximately 800 employees have not disclosed their gender, therefore are not included in these totals.
2
For the purposes of section 414C(8)(c)(ii) of the Companies Act 2006, ‘Senior Managers’ are the SET, the Directors of all of the subsidiaries of the Company and other individuals
holding named positions within those subsidiaries. Individuals on multiple boards are counted once.
Enabling an agile organisation
In 2025, we continued to build talent
internally by investing in our workforce. We:
•
Maintained the focus on building
capability in our global hubs. In 2025,
2,760 external hires were made in
these locations.
•
Continued to develop internal talent and
made 5,100 promotions during 2025.
•
Focused on AI upskilling to enable
employees to leverage AI in their roles.
We also provided access to an AI agent
builder, empowering teams to gain
hands-on experience in developing
and deploying AI-driven tools.
Human Resources Standards
Our Global Human Resources Standards
outline our position on key topics. We
expect all our employees to align with these
standards and do not tolerate any actions
which are not aligned. As well as complying
with all workplace diversity legislation and
requiring the same of the third parties we
work with, we provide mechanisms by which
employees can confidently raise concerns,
and we have processes which enable
disciplinary action to be taken where
necessary.
Listening to our workforce
Encouraging employees to provide
continuous feedback through various
mechanisms helps us to foster an inclusive
culture and be a great place to work.
We invest in developing coaching capability
in our leaders and employees to help them
bring a coaching approach to their quarterly
check-ins and everyday performance
conversations. We also collect feedback
86%
believe that
AstraZeneca is a
great place to work
89%
believe that in the
last 12 months, they
have improved their
existing skills, or
learned new skills,
or had a development
opportunity
39
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Annual Report & Form 20-F Information 2025
Corporate Governance
Sustainability Statement
Additional Information
Financial Statements
Strategic Report
Business Review | People and Sustainability
People and Sustainability
Overview
•
Our sustainability impact:
We are taking
action on climate and nature, health equity
and health systems resilience.
•
How we do business:
We are guided
by our Values and invest in our people
to create long-term value, resilience
and trust by operating responsibly,
ethically and with robust governance.
Our approach to sustainability reporting
Our sustainability reporting is prepared in
line with the UK Companies Act 2006, the
EU Corporate Sustainability Reporting
Directive (CSRD) and European
Sustainability Reporting Standards (ESRS),
EU Taxonomy on Sustainable Activities and
the recommendations of the Task Force on
Climate-related Financial Disclosures.
Sustainability is embedded in our Growth
Through Innovation strategy, with material
sustainability topics aligned to our three
strategic pillars and disclosed within the
Business Review. This year we introduced
the Sustainability Statement section in the
Annual Report, setting out general
disclosures such as basis for preparation,
an overview of the double materiality
assessment process and management
of impacts, risks and opportunities, with
policies, targets and metrics for each
material topic. We have cross-referenced
where ESRS disclosures are met throughout
this Annual Report.
Sustainability
Recognising the interconnection
between business growth and
addressing the major health
challenges of our time, we are
focusing on how we make a positive
impact for people, society and the
planet, and how we do business.
For further information on the
basis of preparation of our
sustainability reporting, our
metrics, targets and policies,
see the Sustainability Statement
from page 204.
Our material sustainability topics
In 2025, we updated our 2024 double
materiality assessment, and our material
topics are presented below. Disclosures
relating to these topics can be found in the
Business Review, from page 26 and the
Sustainability Statement, from page 204.
•
Business conduct, see pages 34 to 35.
•
Cybersecurity and data privacy,
see page 36.
Growth and Therapy
Area Leadership
•
Sustainable innovation, see page 30.
•
Patient safety and product quality,
see page 31.
Science and Innovation
•
People, see page 39.
•
Accessible and affordable healthcare,
see page 41.
•
Climate change, see pages 42 to 44.
•
Nature, see page 45.
People and Sustainability
Through our health equity programme,
we aim to close healthcare gaps and
to give people everywhere the chance
to be as healthy as possible.
Corporate Governance
Sustainability Statement
Additional Information
Financial Statements
Strategic Report
40
AstraZeneca
Annual Report & Form 20-F Information 2025
Business Review
Business Review
continued
Affordability and pricing
We take a broad and collaborative approach
across diverse global healthcare systems,
working with payers and policymakers to
promote widespread, sustainable access.
Our tailored programmes address local
health needs, strengthen health systems
resilience, and enhance affordability by
partnering with country-specific health
systems to deliver medicines in a locally
accessible way. In 2025, our key continuous
initiatives included:
•
Health system strengthening:
To build
resilient and sustainable health systems,
we partner with health system stakeholders
to transform care by providing evidence-
based recommendations and co-creating
solutions that help to reduce disease
progression, hospital admissions and
premature deaths, globally.
•
Customised solutions for out-of-pocket
gaps:
Supporting patients’ ability to stay
on prescribed therapies.
•
Patient Assistance Programmes (PAPs):
Assisting those unable to pay and
addressing funding gaps, enabling patients
to fund part of their treatment in line with
their affordability and means, and in a
manner consistent with applicable laws.
•
Tailored payment models:
Leveraging
tiered pricing and innovative solutions
such as, value-based agreements, to
maximise patient access.
Clinical trial representation
We aim to achieve more representative
clinical trial populations to better reflect
the patient communities we serve. In 2025,
we extended our real-time dashboard for
measuring representativeness of Phase III
studies to Canada, building on previous
launches in the US and Brazil in 2024.
We actively participate in public-private
partnerships including the Innovative Health
Initiative’s Research in Europe and Diversity
Inclusion, ESMO, and the Cancer Drug
Development Forum to enhance trial
representativeness, while contributing to the
scientific community through publications in
the American Society of Clinical Oncology
Educational Book series that outline methods
for improving clinical trial representation.
Additionally, we are partnering with
community-focused organisations such as
Acclinate and Black Health Matters, as well
as not-for-profit organisations including the
Sexual Gender Minority Alliance, National
Medical Fellowship, and Women Health
Access Matters, all aimed at improving
representation across our clinical trials.
These initiatives reflect our sustained
ambition to improving clinical trial
representation on multiple fronts, both
within the Company and across the wider
research ecosystem.
Key early and post-trial access
We reaffirm our approach to early and
post-clinical trial access to medicines,
providing our therapies to those in need prior
to regulatory approval in specific countries,
in addition to our approach to continue
treating patients after the termination of
clinical trials, ensuring ongoing access and
continuity of care. Patients who face serious
or life-threatening illnesses, and have
exhausted alternative treatment options,
will have their requests for early access
to investigational medicinal products
carefully considered. This applies to those
unable to participate in clinical trials, and
is carried out through appropriate early
access pathways in accordance with local
laws and regulations. Where appropriate,
our approach also includes supporting
continued treatment after clinical trial
participation (post-trial access), ensuring
safe, ethical, timely and lawful patient
support prior to product approval in their
respective countries.
In May 2025, we updated our health equity
strategy, embedding health equity across
science (including genomics and clinical
trials), healthcare delivery and community
investment, with a 2030 ambition to
positively impact one billion people,
including 400 million from underserved
communities. Details of our health equity
strategy and supporting policies and
programmes can be found on our website.
Through collaborations, partnerships and
stakeholder coalitions we are working to
ensure essential and innovative medicines
become more widely available and
affordable. Pricing for our medicines seeks
to reflect the value they bring to patients,
payers and society, and the significant
investment required for targeted treatment
options. Through our health equity
approach, we also aim to ensure that more
individuals can equitably benefit from our
clinical trials, science and capabilities.
We have a global tiered pricing policy
comprising of four tiers based on gross
national income, with confidential, flexible
pricing focused on affordability and brand
application in support of patients across all
tiers. This aims to address disparities in
countries’ ability to pay, enhancing equitable
access while supporting financial viability.
In support of our targets, we engage in
ongoing health equity initiatives enterprise-
wide. We continue to implement innovative
solutions to optimise affordability and
accessibility, where necessary addressing
barriers beyond price.
For information regarding
Intellectual property, see
page 30.
320 million
people positively impacted since 2024,
including:
156 million
from underserved groups
Accessible and affordable healthcare
Our medicines impact more than
100 million patient lives annually,
ranging from cancer and chronic
diseases to rare diseases. We are
closing healthcare gaps along the
entire patient journey to improve
access to screening, early detection,
diagnosis and treatment, and
innovating to deliver our life-
changing medicines in a
sustainable and equitable way.
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73,903
gross Scope 1 and 2 GHG emissions
(Market-based)
(tonnes CO
2
e)
6,197,690
gross Scope 3 GHG emissions
(tonnes CO
2
e)
1.26
Scope 1 and 2 GHG emissions intensity
(tonnes CO
2
e per million of Total Revenue)
69%
share of primary activity data in Scope 3
reporting
Delivering these targets requires whole
value-chain decarbonisation across Scopes
1, 2 and 3, through levers which eliminate,
reduce, substitute and then neutralise
residual emissions to achieve net zero.
Specific decarbonisation levers are
described below.
We have a near-term target of 98% absolute
reduction in Scope 1 and 2 GHG emissions
by 2026 from a 2015 baseline. By the end
of 2025, we have achieved 88.1%. We face
localised challenges across our global
operations with accessing sources of
renewable energy to decarbonise site
operations and to procure and operate
electric vehicles, that present transition risks
for delivering reductions to our Scope 1 and
2 GHG footprint against our 2026 target.
Over 95% of our total GHG emissions are
in the upstream and downstream value
chain. To support our longer-term target
of 50% reduction in total Scope 3 GHG
emissions by 2030 and 90% reduction by
2045, from a 2019 baseline, we are engaging
with suppliers for them to set validated
science-based targets (SBTs) to cover most
of our supplier spend by the end of 2025.
Achieving Scope 3 targets requires extensive
global decarbonisation across our entire
supply chain, including our product portfolio
which represents a large portion of our GHG
emissions. Pharmaceutical products have
a long development cycle, which makes
it critical to design and embed climate
considerations at an early stage for future
products now in development. In addition,
to achieve our goals, we must tackle
emissions from our existing commercial
portfolio, which creates challenges with
heavily regulated production processes
and materials.
We are conducting a scheduled review
of our SBTi-verified Net-Zero Corporate
Standard targets in line with SBTi timelines,
taking the opportunity to embed learnings
from the past five years. This includes
certain targets disclosed in previous years.
We expect to communicate the outcomes
in 2026.
Governance
Our executive-led SET Sustainability
Governance Group is accountable for the
delivery of Ambition Zero Carbon and its
transition plan. Regular governance updates
and proposals are provided to the Group,
which in 2025 included our CEO, Chief
Financial Officer (CFO), Chief Human
Resources Officer, Chief Compliance Officer
and General Counsel, and the EVP, Global
Operations, IT & Chief Sustainability Officer.
The Sustainability Committee monitors
progress on Ambition Zero Carbon.
Sustainability reporting is overseen by the
Transition plan for climate change
In 2020, we launched our Ambition Zero
Carbon strategy, through which we are
pursuing decarbonisation targets compatible
with the limiting of global warming to 1.5°C,
and making progress towards achieving net
zero by 2045. Our near- and long-term GHG
emissions targets were verified under the
Science Based Targets initiative (SBTi)
Net-Zero Corporate Standard in 2021.
We are targeting a 98% absolute reduction
in Scope 1 and 2 by 2026 (2015 baseline),
a 50% absolute reduction in total Scope 3
by 2030 and 90% by 2045 (2019 baseline),
and net zero by 2045.
Climate change
In support of our Ambition 2030
strategy, we have set and are
delivering action on our corporate
climate targets. We are decarbonising
our value chain including our own
operations, and through global
initiatives and collaboration with our
peers, we are driving action to accelerate
the delivery of net-zero healthcare.
Failure to meet regulatory requirements,
voluntary sustainability targets and
stakeholder expectations could
adversely affect the Company’s
reputation with key stakeholders.
Audit Committee. The CEO’s responsibilities
to the Board include the development and
performance of the Ambition Zero Carbon
strategy and related risks and opportunities.
The EVP, Global Operations, IT & Chief
Sustainability Officer is responsible for the
Ambition Zero Carbon strategy and its
execution, and all SET members have
responsibility for working with their teams
to ensure alignment of the Ambition Zero
Carbon strategy with business priorities and
climate risks and opportunities.
Initiatives approved by the SET Sustainability
Governance Group are included in the relevant
management units’ financial planning.
Scope 1 and 2 decarbonisation levers
To support the achievement of the Scope 1
and 2 GHG target, we are addressing direct
and indirect emissions through focused
operational improvements and energy
transitions.
Road fleet electrification
At the end of 2025, we had transitioned over
80% of our total owned and leased road
vehicle fleet to battery electric vehicles (over
18,000 vehicles) and purchased renewable
electricity Energy Attribute Certificates
equivalent to charging energy requirements.
37 markets have achieved a 100% electric
vehicle transition to date. The global
transition is being progressed while some
markets are experiencing challenges with
the supply of vehicles and the availability
of charging infrastructure.
Site F-gas management
F-gases are released during the production
process of current pMDI medicines. Through
a process change involving purging empty
canisters in a vacuum instead of using a
propellant, we have significantly reduced
F-gas emissions. A second reduction
initiative of capturing F-gas emissions from
the production process, using cryogenic
technology that liquefies the gases, has
been completed in 2025, enabling the
storage and removal from site for either
incineration or recycling. This is a near-term
solution to mitigate GHG emissions from
our existing pMDI medicines as we transition
to a pMDI portfolio using next-generation
propellant (NGP) as part of our Scope 3
decarbonisation strategy.
Fuel switching (clean heat)
In 2025, supply of biomethane commenced
via long-term commercial agreements with
Vanguard Renewables in the US and Future
Biogas in the UK. When fully operational,
these collaborations are expected to enable
up to 330 GWh of biomethane to be used
across our US and UK sites, equivalent to
70% of our total global gas consumption.
People and Sustainability
For more information regarding
how our approach to climate
mitigation action is grounded
in the principles of our Code of
Ethics and the SHE Framework,
see pages 211 and 219.
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Sustainability Statement
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Financial Statements
Strategic Report
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Business Review
continued
Scope 3 decarbonisation levers
Product manufacture
Product manufacture is a significant
contributor to our Scope 3 footprint, outside
of AstraZeneca’s own operations, and
decarbonising products is a key pillar of
our strategy to achieve our Scope 3 targets.
We continue to implement our Life-Cycle
Assessment (LCA) programme, aligned with
ISO 14040 and 14044 standards, and this
now encompasses medicines which
contribute to the majority of our Total
Revenue. Using this and other sustainability
inputs, we have established an internal
Product Sustainability Index (PSI) to
understand the environmental impacts of our
launched products and inform sustainability
improvement plans. The PSI programme is
also being piloted on development projects,
with an initial focus on carbon and supported
by a simplified internal LCA tool to enable
early identification and assessment of
products in development that will be part
of our future footprint.
Non-product supplier emissions
To address the Scope 3 footprint associated
with purchased goods and services,
we prioritise collaboration with suppliers.
We continued to advocate for our suppliers
to set SBTs, ensuring that our climate
ambitions are shared across our value chain.
Additionally, we facilitate access to renewable
electricity through initiatives such as the
Energize programme, enabling more
suppliers to transition to renewable energy
sources. Our leadership of industry
collaborations, including the Sustainable
Markets Initiative Health Systems Task Force
and Pharmaceutical Supply Chain Initiative,
further help to align climate expectations and
best practices across the pharmaceutical
industry’s shared supplier base.
Product use
As part of our efforts to provide patients with
access to treatment with lower GHG emissions,
we are transitioning our portfolio of inhaled
respiratory medicines delivered by pMDIs
to use a NGP with near-zero GWP. pMDIs
deliver essential, life-saving medicines for
millions of people living with respiratory
diseases worldwide and are the most
commonly used type of inhaler device
globally. Our NGP has 99.9% less GWP than
propellants used in our current pMDI
portfolio, which makes the transition to the
NGP a key product-related element of our
Ambition Zero Carbon strategy. In 2025,
we announced the world-first approval by
the UK Medicines and Healthcare products
Regulatory Agency and a Committee for
Medicinal Products for Human Use positive
opinion for
Trixeo
Aerosphere
to be used
with the NGP, endorsing it for use in the EU
and marking the initiation of the transition
of our full portfolio to the NGP, with
submissions for transitioning
Breztri
/
Trixeo
in other territories underway.
Transport – distribution and
business travel
We continue to reduce emissions through
our transport modal shift programme,
transitioning key distribution routes from
air to sea. Performance regarding primary
distribution emissions is tracked on a
quarterly basis. We are also evaluating
alternative fuels, including sustainable
aviation fuel, with the aim of quantifying
whole life-cycle sustainability impacts.
In parallel, we are enhancing our secondary
distribution reporting methodologies to
identify emissions hotspots and highlight
decarbonisation opportunities. New ways
of working have significantly reduced our
business travel emissions. All teams operate
within a centrally tracked carbon travel
budget. In addition, engagement work is
ongoing to promote more sustainable modes
of travel, particularly on routes with good
alternatives.
Climate performance
Our global GHG metrics cover Scope 1,
Scope 2 on a market-based basis (with
location-based shown for comparison), total
Scope 3 across all 15 categories, and total
energy use. Scope 1 reflects the application
of biomethane certificates; biogenic emissions
are reported outside Scopes 1 to 3.
Global GHG emissions data for the period 1 January 2025 to 31 December 2025
1
Unit
2025
2024
2023
Baseline 2015
Scope 1
Tonnes CO₂e
62,587
125,386
180,898
298,498
Scope 2 (Market-based)
2
Tonnes CO₂e
11,316
14,210
19,940
322,319
Scope 2 (Location-based)
Tonnes CO₂e
241,023
217,026
183,332
266,372
Gross Scope 1 and 2 GHG emissions (Market-based)
2
Tonnes CO₂e
73,903
139,594
200,838
620,818
Scope 1 and Scope 2 (Market-based) intensity
Tonnes CO₂e per million of Total Revenue
1.26
2.58
4.38
22.73
Biogenic emissions (outside-of-scope emissions)
3
Tonnes CO₂e
105,850
75,978
29,201
2,822
Total energy consumption
Megawatt hours (MWh)
1,612,136
1,676,076
1,733,325
1,832,611
Unit
2025
2024
2023
Baseline 2019
Gross Scope 3 emissions (all relevant categories)
4,5
Tonnes CO₂e
6,197,690
5,716,211
5,591,071
5,025,169
Scope 3 intensity
5
Tonnes CO₂e per million of Total Revenue
105.5
105.7
122.0
171.1
1
The table above presents all emission sources required under the UK Streamlined Energy and Carbon Reporting (SECR) requirements. The portion of total global energy and
emissions originating from AstraZeneca’s UK and offshore area footprint were as follows: energy use 236,850 MWh (15%); Scope 1 site energy, non-energy and fleet emissions
10,941 tCO₂e (17%); Scope 2 site-imported energy emissions using market-based accounting 0 tCO₂e (0%); and Scope 2 site-imported energy emissions using location-based
accounting 20,494 tCO₂e (9%).
2
96% of Scope 2 market-based GHG emissions are associated with contractual instruments such as energy attribute certificates and power purchase agreements.
3
Biomethane certificates are applied in Scope 1 with a CO₂ factor of zero; non-CO₂ emissions are reported.
4
Scope 3 GHG emissions (excluding Category 9) was 6,070,258 tCO₂e.
5
Regular data review is carried out to enhance accuracy, consistency of measurement across periods and reflect major business change. Reviews in 2025 resulted in revisions to
figures reported in previous years primarily arising from: i) Revision of spend data methodology for Scope 3 categories 1,4,6 and use of latest emission factors, and ii) Alignment of
capital goods (category 2) data and classifications to financial reporting scope. These changes are applied consistently across all prior years, and resulted in a reduction to the 2019
baseline by 12%.
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Financial Statements
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People and Sustainability
Climate change
continued
Climate change adaptation
Climate change is expected to increase the
frequency of extreme weather and climate-
related natural disasters. This may cause
disruption to our own and third-party
supplier sites and distribution routes due
to increased exposure to climate hazards.
Medicine shortages due to climate disasters
could lead to delayed supply of critical
medicines, impacting patients. To mitigate
exposure and build resilience to the risks
presented by climate change, we identify
and integrate risks into site business
continuity and mitigation plans and in
supply chain design.
Our Business Continuity Standard outlines
the principles for consistent business
continuity process and governance, in
order to support effective and sustainable
business resilience across AstraZeneca.
Business continuity and mitigation plans
To mitigate exposure and increase resilience
to acute extreme weather events and
longer-term shifts in climate patterns,
identified climate risks are integrated into
sites’ business continuity and mitigation
plans. Examples of climate change
adaptation solutions implemented in 2025
include improving emergency response
plans in relation to climate hazards.
In 2025, three new material construction
projects were assessed on their exposure to
physical climate risks based on their location
and activities, using a high-carbon scenario.
The assessment included dependencies on
local communities and adaptation measures
have been integrated into the design where
feasible to protect the construction and to
secure delivery of medicines to patients.
Climate-related risks in the supply chain are
covered by supply chain design (e.g. dual
sourcing, strategic planning for safety stock)
as part of product-level business continuity
management.
Climate risk management
We follow the science to manage the risks
presented by climate change and to build
resilience against any such risks. The
identification and assessment of climate risk
forms part of our existing risk management
processes. We conduct scenario analyses
using a low/medium/high case scenario
based on the Intergovernmental Panel on
Climate Change scenarios, namely Shared
Socioeconomic Pathways (SSPs) and
Representative Concentration Pathways
(RCPs).
Impacts on climate change
Based on our current business model and
reduced GHG emissions footprint,
contribution to climate change is not
considered to be a material impact. However,
we have identified a material impact related
to climate change adaptation; see page 206.
Climate-related physical risks
We have developed a process to conduct
deep dive risk assessments for AstraZeneca
sites, taking a risk-based approach. We have
conducted scenario analysis based on a
broad range of climate scenarios (SSP1-
RCP2.6, SSP2-RCP4.5 and SSP5-RCP8.5)
taking into consideration the likelihood,
magnitude and duration of the hazards.
As a part of the physical climate risk
assessments, the resilience of the sites is
assessed factoring in downtime of supply
and backup from dual sourcing. No material
physical climate-related financial risks have
been identified.
Our strategy for adaptation is aligned to a
high-emission scenario. Where appropriate,
the risk mitigation measures and
interventions are escalated to site
management and captured on the local
risk register. Identified risks are addressed
in local business continuity plans or by
technical mitigations in site master plans.
Short-, mid- and long-term financial
planning includes required investments.
Climate-related transition risks
Climate-related transition risks and
opportunities are assessed both at
enterprise and product levels, including
prioritised medicines where LCA data is
available. Through scenario analysis, risks
and opportunities were identified to cover
medicines in the therapy areas of Oncology,
CVRM and R&I to see how drivers such as
regulations, access to renewable energy,
technology shifts, market expectations
and reputational aspects can impact our
financial forecast. In addition, transition
risks and opportunities have been identified
at enterprise level for transportation,
renewable energy, and raw materials
represented by F-gases used in our
inhaled respiratory portfolio.
Our climate strategy is designed to address
transition risks and opportunities in a
low-carbon scenario and a pathway
aligned with our SBTs of limiting global
warming to 1.5°C.
For more information regarding
our Business Continuity
Standard, see page 211.
For more information regarding
the scenario analysis
conducted within the resilience
analysis process, see page 214.
For more information regarding
how the Group assesses its
resilience against risks
including climate-related risks
through a viability assessment,
see the Viability Statement
on page 46.
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Sustainability Statement
Additional Information
Financial Statements
Strategic Report
Business Review
Business Review
continued
Nature
As we work to enhance patient
health outcomes through advances
in medical treatments, we aim to
manage our dependencies and
impacts on nature by designing them
out where we can, and addressing
those that remain across our raw
material sourcing, production,
use and disposal of our medicines.
We strive to minimise the environmental
impact of our products from discovery to
disposal, in alignment with our Code of
Ethics. This approach is embedded into
key internal processes and procedures
throughout the life-cycle of our medicines,
such as the OneSHE Framework.
Use and sourcing of raw materials
The development, manufacture and testing
of medicines requires a wide range of
ingredients, including chemicals and
excipients, many requiring complex inputs to
manufacture. We rely on materials sourced
from wild species, such as horseshoe crab
blood. We aim to manage adverse impacts
that drive nature loss such as land use
change and deforestation, unsustainable use
of freshwater, GHG emissions and pollution.
Assessing nature risks
As part of our double materiality assessment,
we assessed our nature-related impacts
based on current visibility of our interfaces
with nature. As we gain understanding of
connections to nature within our supply
chain, we aim to identify and assess adverse
impacts and risks, developing action plans
for responsible supply chain management.
Reducing the reliance on horseshoe crabs
To ensure the patient safety of injectable
medicines there are global regulatory
requirements to test raw materials, water
systems and products for the presence
of endotoxins, a significant risk to patient
safety. Until recently, the blood of horseshoe
crabs has been the only ingredient suitable
to make the reagents needed to perform
these tests. We are advocating for
harmonised regulations to simplify the
transition for product testing from horseshoe
crab blood to synthetics. In the interim, most
of our labs have transitioned to more
efficient methods for endotoxin testing of
water systems and in 2025, have reduced
this dependency further by transitioning
to a synthetic alternative for this purpose.
Pharmaceuticals in the environment
Pharmaceutical residues entering the
environment is currently an unavoidable
result of the patient use of medicines. We
recognise our most material water pollution
impact as the APIs in our products. APIs are
biologically active molecules and may interact
with and impact wildlife in the environment.
We have ongoing programmes and
processes across the value chain to
understand and minimise the impact of
pharmaceuticals in the environment (PiE),
as part of our ambition to lower the
environmental burden of healthcare, while
improving health outcomes and reducing
our exposure to environmental risks.
Environmental risk assessments
To understand the environmental impacts
of APIs, we complete Environmental Risk
Assessments (ERAs) before the approval
of a new medicine and, using experimental
data, identify target concentrations of our
APIs considered to pose insignificant risk
to the environment. These are also utilised
to manage our own emissions from the
manufacture of our products. The Safe API
Discharge process sets and monitors target
concentrations of API emissions from
manufacturing to the aquatic environment
that are not to be exceeded by AstraZeneca
and relevant supplier sites. Our ERAs
demonstrate that PiE resulting from use
of our products pose a low or insignificant
environmental risk and are unlikely to cause
adverse impacts. The data meets the
international standards set by regulators,
and we publish summaries of the ERAs and
underlying data on www.astrazeneca.com/
sustainability/resources.html.
EcoPharmacoVigilance
Our EcoPharmacoVigilance (EPV) approach
reviews emerging science and peer-
reviewed literature to inform and improve the
ERAs of our APIs. We monitor measurements
of our products in water bodies across the
world that are published in scientific journals
and publish those results on our website, as
well as our industry-leading EPV dashboard,
where users can visualise this data. It shows
that, where detection of our APIs has been
reported in scientific literature, the measured
concentrations pose low or insignificant
environmental risk in over 99% of cases.
There can be some location-specific
environmental risks for particular
pharmaceuticals, especially in regions where
there may be inadequate sewage treatment
and/or high populations discharging waste
into rivers with low-dilution conditions.
PFAS restrictions
In the EU, the European Chemicals Agency
(ECHA) is evaluating a proposed restriction
of per- and polyfluoroalkyl substances
(PFAS), employing a broad, structure-based
definition of PFAS. The proposal potentially
impacts a family of more than 10,000
chemicals which are used across many
industries. In other jurisdictions, including
the UK, the US and Canada, policymakers
have signalled their intent to restrict, or have
initiated reviews aimed at restricting, PFAS
chemicals. Definitions of PFAS may vary by
jurisdiction, and scopes and timelines for
regulatory action differ.
Not all materials classified as PFAS, nor all
uses of such materials, present equivalent
environmental or human-health risks.
Certain PFAS materials play important roles
across the biopharmaceutical value chain,
supporting process integrity and product
quality; in certain applications, technically
viable alternatives are not available, making
complete substitution challenging.
We apply a science-based approach to our
management of PFAS use, which includes
ongoing evaluation and implementation of
reductions or substitutions of PFAS materials
wherever possible, while continuing to
protect medicines for patients, including
ensuring supply security, patient safety and
regulatory compliance. Proposals for blanket
bans of PFAS that do not account for
essential uses could potentially affect
development, manufacturing, packaging
and drug delivery of medicines, raising a
potential risk of shortages or the removal of
therapeutic options, with significant impact
for patients and public health.
In the EU and globally, we are working with
relevant authorities and experts to ensure
any new regulations regarding the use of
PFAS meet patient, public health and
environmental needs, and protect the
supply of medicines to patients in the EU
and globally. These activities include
industry-wide engagements in public-
private partnerships on PFAS exposure,
emissions, and end-of-life management
in the healthcare sector, as well as our
contributions to the ECHA’s public
consultations on the PFAS Restriction
Proposal.
For more information on our
policies, see page 211.
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Annual Report & Form 20-F Information 2025
Corporate Governance
Sustainability Statement
Additional Information
Financial Statements
Strategic Report
Business Review | People and Sustainability
Throughout the year the Directors have
considered the factors set out in section
172(1)(a)-(f) of the UK Companies Act 2006,
as well as other factors relevant to the
decision being made. The Board
acknowledges that not every decision made
will necessarily result in a positive outcome
for all stakeholders. By considering our
Purpose and Values, together with
AstraZeneca’s strategic priorities, the Board
aims to ensure that the decisions made are
consistent and intended to promote the
Company’s long-term success.
The Board is required to promote the
success of AstraZeneca for the shareholders
and wider stakeholders who interact with
and are impacted by our business.
The three-year detailed business plan
captures risks to the sales and cost forecasts
at market and SET functional levels. The plan
is used to perform central net debt and
headroom-profile analysis. The following
scenarios have been applied to this analysis
to create a severe but plausible downside
combining a number of the Principal Risks
detailed on pages 48 and 49.
•
Principal Risks:
Pricing, affordability,
access, competitive pressures and failures
or delays in the quality or execution of the
Group’s commercial strategies.
–
Scenario 1: Government action on pricing,
higher than anticipated competition and
other commercial headwinds result in
lower than anticipated growth rates for
our medicines.
–
Scenario 2: A significant incident leads
to reputational damage in a key market
resulting in an ongoing 10% reduction
in revenue achieved in this market.
•
Principal Risk:
Failure or delay in
the delivery of our pipeline or launch
of new medicines.
–
Scenario 3: Assumes no launches
of new products.
•
Principal Risk:
Failure to maintain
supply of compliant, quality medicines.
–
Scenario 4: Major equipment failure or a
significant regulatory observation at one
of our major manufacturing sites results
in a 12-month loss of manufacturing
capability for one of our key oncology
products, leading to supply interruption.
•
Principal Risks:
Failure in information
technology or cybersecurity, adverse
outcome of litigation and/or government
investigations.
–
Scenario 5: A cyber incident results
in interruption to manufacturing and
associated penalties.
In addition, the Board has considered more
stressed scenarios, including restrictions
on debt factoring and no access to capital
markets to raise new debt. In each scenario
(or combination of scenarios above), the
Group is able to rely on its existing cash,
cash equivalents and short-term fixed
income investments, committed credit
facilities, leverage its cost base, reduce
capital expenditure and take other cash
management measures to mitigate the
impacts and still have residual capacity
to absorb further shocks.
Based on the results of this analysis, the
Directors have a reasonable expectation
that the Company will be able to continue
in operation and meet its liabilities, as they
fall due, over the three-year period of their
assessment.
In accordance with provision 31 of the 2024
UK Corporate Governance Code, the Board
has determined that a three-year period
to 31 December 2028 constitutes an
appropriate period over which to provide
its viability statement.
The Board assesses the Company’s
prospects using a 10-year long-range
projection. It notes the rich and varied
portfolio of medicines in development
across a range of therapy areas and the
medicines currently commercialised in
more than 100 markets, concluding that the
Company’s long-term prospects remain
strong. The Board also considers annually
and on a rolling basis, a three-year bottom-
up detailed business plan and, given the
inherent uncertainty involved, believes that
the three-year statement presents readers
of this Annual Report with a reasonable
degree of assurance over the ongoing
viability of the Company, while still
providing a longer-term perspective.
Our Risk Overview can be
found from page 47 to 49. Full
details are given in the Risk
Supplement on our website,
www.astrazeneca.com/
annualreport2025.
The Board and management engaged with key
stakeholders throughout the year to understand
the issues and factors that are significant for these
stakeholders, and a number of actions were taken
as a result of this engagement.
These interactions, and the outcomes and actions which resulted, are set out in the Connecting with
our stakeholders section from page 74 and throughout the Strategic Report.
We are committed to being a great place to work
for the global workforce.
Details on engagement with employees can be found on page 39 of the Business Review, on page 78
of the Corporate Governance Report, page 85 and 86 in the Audit Committee Report and page 109 of the
Remuneration Committee Report.
We are committed to employing high ethical
standards when carrying out all aspects of our
business globally. Our Code of Ethics (the Code)
is based on our Values, expected behaviours and
key policy principles.
More information on the Code can be found on page 34.
We recognise patients as people first and put
them at the heart of what we do.
Further information on the importance of patients to the business can be found on page 31 of the
Business Review and page 74 of the Corporate Governance Report.
Principal Decisions are decisions and discussions
which are material or strategic to the Group and
also those that are significant to our key
stakeholder groups.
The consideration and impact of the Group’s operations on the environment and how the Group has
considered other factors, such as communities and suppliers, can be found throughout the People and
Sustainability section from page 38 of the Business Review.
Details of how the Board operates and matters considered by the Board are set out in the Corporate
Governance Report from page 71.
Details on the Board and SET composition and gender diversity can be found on pages 39, 68, and 80.
Examples of how Directors discharged their duties and considered stakeholders when making Principal
Decisions during 2025 are set out on page 77.
46
AstraZeneca
Annual Report & Form 20-F Information 2025
Corporate Governance
Sustainability Statement
Additional Information
Financial Statements
Strategic Report
Business Review
Section 172(1) Statement
Viability Statement
Managing risk
Our approach to risk management is designed
to encourage clear decision making on which
risks we take and how we manage and mitigate
these risks. We strive to embed sound risk
management within our strategy, planning,
budgeting and performance management
processes. The Board defines the Group’s
risk appetite. This enables the Group, in both
quantitative and qualitative terms, to judge
the level of risk it is prepared to take in
achieving its overall objectives.
The Senior Executive Team (SET) is required
by the Board to oversee and monitor the
effectiveness of the risk management system.
Within each SET function, leadership teams
discuss the risks the business faces. Quarterly,
each SET function assesses changes to these
risks, new and emerging, and mitigation
plans. These are assimilated into a Group
Risk Report for the Board, Audit Committee
and SET.
Global Compliance, Finance and Group
Internal Audit support management and
the Board by providing assurance over
our internal controls and risk management
system. The Board believes that existing
processes provide it with adequate
information on the risks and uncertainties
we face. The Board has carried out a robust
assessment of the emerging and Principal
Risks facing the Group. Our Principal Risks
are those risks that are most likely to
significantly impact delivery of our business
strategy or future performance and are
a subset of the total risk landscape facing
the Group. The table on pages 48 and 49
provides insight into these Principal Risks.
Emerging risks
We monitor our business activities and
external and internal environments for new,
emerging and changing risks to ensure
these are managed appropriately. Annually,
we combine input from each SET function
and external insight to scan the horizon for
emerging risks and a summary is presented
to the Audit Committee and the Board.
Emerging risks continue to be monitored
as part of the ongoing risk management
processes outlined above.
Climate risk
The identification and assessment of climate
risk forms part of our existing risk management
processes. ‘Failure to meet our sustainability
targets, regulatory requirements and
stakeholder expectations with respect to the
environment’ incorporates climate risk within
its scope and is a component of the Group’s
risk landscape but is not currently considered
to be a Principal Risk for the Group.
Cybersecurity risk
Our approach to identifying, assessing and
managing cybersecurity risks (including
those that result from the use of third parties
in business processes and data management)
is integrated within our Group-wide approach
to managing risk. Mitigation includes a
comprehensive cybersecurity programme
comprising executive oversight, defined
standards, prioritised investment, active
defence operations, and technology
optimisation. Cyber risks are monitored and
mitigation effectiveness regularly reported
in KPI dashboards provided to management
and the Audit Committee. Incidents are
managed and reported using the
cybersecurity incident management
framework which in turn is connected to
the Group’s crisis management framework.
“We take smart risks.”
47
AstraZeneca
Annual Report & Form 20-F Information 2025
Corporate Governance
Sustainability Statement
Additional Information
Financial Statements
Strategic Report
Risk Overview
Risk Overview
Risk category and Principal Risks
Context/potential impact
Management actions
Trend
Product pipeline risks
Failure or delay in
the delivery of our
pipeline or launch
of new medicines
The development of pharmaceutical product candidates
is a complex, risky and lengthy process involving significant
resources. A project may fail at any stage of the process due
to a number of factors, which could adversely affect our
reputation, future business and results of operations.
•
Prioritise and accelerate our pipeline.
•
Strengthen pipeline through acquisitions,
licensing and collaborations.
•
Focus on innovative science in our main
therapy areas.
•
Improve R&D productivity.
Failure to meet
regulatory
or ethical
requirements
for medicine
development
or approval
We are subject to laws and regulations that control our ability
to market our pharmaceutical products. Delays in regulatory
approvals could delay our ability to market our products and
may adversely affect our revenue.
•
Quality management systems incorporating
monitoring, training and assurance activities.
•
Collaborating with regulatory bodies and
advocacy groups to monitor and respond
to changes in the regulatory environment,
including revised processes, timelines
and guidance.
Commercialisation risks
Pricing,
affordability,
access and
competitive
pressures
The pricing and market access environment is highly
complex and subject to dynamic economic, political and
social pressures. Deterioration in socio-economic conditions
may affect customers’ ability or willingness to purchase our
medicines and may adversely affect our business and
results of operations.
•
Implementation of pricing, reimbursement
and policy frameworks.
•
Focus on key products.
•
Demonstrate value of medicines/health
economics.
•
Implement innovative value-based agreements
focused on patient outcomes.
•
Global footprint.
•
Diversified portfolio.
Failures or delays
in the quality or
execution of
the Group’s
commercial
strategies
A failure to execute our commercial strategies or achieve
the level of sales anticipated for a medicine could materially
impact our business.
•
Focus on key products.
•
Substantial investment in sales and
marketing activities.
•
Accelerate execution of plans and risk sharing
through business development and strategic
collaborations and alliances.
Supply chain and business execution risks
Failure to maintain
supply of
compliant,
quality medicines
Supply chain difficulties may result in product shortages
which could lead to lost product sales and materially affect
our reputation and results of operations.
•
Establishment of new manufacturing facilities,
creating capacity and technical capability
to support new product launches.
•
Contingency plans, including dual sourcing,
multiple suppliers and close monitoring and
maintenance of stock levels.
•
Business continuity and resilience initiatives,
disaster and data recovery, and emergency
response plans.
•
Quality management systems.
Failure in
information
technology or
cybersecurity
Significant disruption to our IT systems, including
cybersecurity breaches, or failure to comply with applicable
laws or regulations could harm our reputation and materially
affect our financial condition or results of operations.
•
Penetration testing and targeted remediation.
•
Data and application access hardening.
•
Identity and network controls improvement
to protect priority areas.
•
Compliance with emerging cybersecurity
laws and regulations.
•
Defence operations capability upgrade.
•
Enhanced Cloud asset monitoring.
•
Strengthening user device authentication.
•
Regular cybersecurity and privacy training
for employees.
Failure to collect
and manage data or
AI in line with legal
and regulatory
requirements and
strategic objectives
There is an increasing range of legislative and regulatory
requirements to manage data across all countries where we
conduct business such as restricting the movement of data
between countries or how we make use of new technological
capabilities such as AI. Failure to protect data effectively
or the inappropriate use of technologies such as AI may lead
to competitive disadvantage and/or loss of trust from key
stakeholders, including patients, and prevent us from
reaching our strategic objectives. In addition, failure to
identify, prioritise and scale the appropriate AI opportunities
may limit our ability to realise the benefits of AI in support
of our strategic objectives.
•
Enterprise Data Council.
•
Enterprise AI Governance Framework
and Standard.
•
Data Privacy Framework and privacy
impact assessment process.
Principal Risks
Strategy key
Science and Innovation
Growth and Therapy
Area Leadership
People and Sustainability
Achieve Group
Financial Targets
Trend key
Increasing risk
Decreasing risk
Unchanged
48
AstraZeneca
Annual Report & Form 20-F Information 2025
Corporate Governance
Sustainability Statement
Additional Information
Financial Statements
Strategic Report
Risk Overview
Risk Overview
continued
Risk category and Principal Risks
Context/potential impact
Management actions
Trend
Legal, regulatory and compliance risks
Safety and
efficacy
of marketed
medicines
is questioned
Safety concerns relating to our products may lead to recalls,
seizures, interruption of supply and loss of product approvals,
which could adversely affect patient access, our reputation
and our revenues. Significant product liability claims could
also arise, which may be costly, divert management attention,
reduce demand for our products and damage our reputation.
•
Robust processes and systems in place
to manage patient safety and efficacy trends
as well as externally reported risks through
regulatory agencies and other parties. This
includes a comprehensive pharmacovigilance
programme supplemented by close monitoring
and review of adverse events.
Adverse outcome
of litigation and/or
governmental
investigations
Our business is subject to a wide range of laws and
regulations around the world. Actual or perceived failure to
comply may result in AstraZeneca and/or its employees being
investigated by government agencies and authorities and/or
in civil legal proceedings.
Government investigations, litigations, and other legal
proceedings, regardless of outcome, could be costly,
divert management attention, or damage our reputation
and demand for our products.
Unfavourable resolutions to proceedings against us could
subject us to criminal liability, fines, penalties or other
monetary or non-monetary remedies, including enhanced
damages, requiring us to make significant provisions in our
accounts relating to legal proceedings, and could materially
adversely affect our business or results of operations.
•
Established compliance framework with
strong ethical and compliance culture.
•
Combined internal and external counsel
management.
IP risks related
to our products
The pharmaceutical industry is experiencing pressure from
governments and other payers to impose limits on IP
protections to manage healthcare costs. If we are unable
to obtain, defend and enforce our IP, we may experience
accelerated and intensified competition.
•
Active management of IP rights and IP litigation.
Failure to meet
regulatory
and ethical
expectations
on commercial
practices,
including
anti-bribery/
anti-corruption,
anti-fraud and
scientific
exchanges
Any failure to comply with applicable laws, rules and
regulations, including anti-bribery/anti-corruption and
anti-fraud legislation, may result in civil and/or criminal legal
proceedings and/or regulatory sanctions, fines or penalties,
impacting financial results.
•
Strong ethical and compliance culture.
•
Established compliance framework including
annual Code of Ethics training for all employees.
•
Focus on due diligence and oversight of
third-party engagements.
Economic and financial risks
Geopolitical
and/or macro-
economic
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
or significant changes to exchange rates may adversely
impact our business. Geopolitical tensions may lead to the
imposition, alteration or escalation of trade controls, tariffs,
taxes or other restrictions to market access, which may
increase our costs or reduce revenues.
•
Focus on key products.
•
Demonstrate value of medicines/health
economics.
•
Diversified portfolio.
•
Global manufacturing capability.
Failure to achieve
strategic plans
or meet targets
or expectations
Failure to successfully implement our business strategy
may frustrate the achievement of our targets and materially
damage our brand, business, financial position or results
of operations.
•
Focus on key products and innovative science
in our core therapy areas.
•
Strengthen pipeline through acquisitions,
licensing and collaborations.
•
Appropriate capital structure and balance sheet.
•
Portfolio-driven decision-making process
governed by senior executive-led committees.
49
AstraZeneca
Annual Report & Form 20-F Information 2025
Corporate Governance
Sustainability Statement
Additional Information
Financial Statements
Strategic Report
Risk Overview
“AstraZeneca achieved Total Revenue
of $58.7 billion in 2025, driven
predominantly by $58.6 billion
of Product Revenue, representing
growth of 9% (CER: 8%).”
2025 delivered strong
commercial performance,
driven by business-wide
growth and exceptional
pipeline delivery.
In the US, we had overall growth of 8%,
with Product Sales of $23.4 billion, reflecting
continued momentum across the Oncology
portfolio. Product Sales rose in Emerging
Markets by 11% (CER: 13%) to $15.1 billion
and in Europe by 11% (CER: 7%) to $12.0 billion,
with Oncology and
Farxiga
driving the
increases in both regions. In Established
Rest of World markets, there was growth
of 3% (CER: 3%) to $5.1 billion due to
growth in Oncology.
Alliance Revenue increased by 39% (CER:
38%) to $3.1 billion, including $1.8 billion from
Enhertu
, which has shown continued growth
since achieving blockbuster status in 2023.
Collaboration Revenue decreased by 89%
(CER: 89%) to $0.1 billion.
Profitability
Reported Earnings Per Share (EPS) was
$6.60 in the year (2024: $4.54) and Core
EPS was $9.16 (2024: $8.21) driven by
improved Operating Margin from Total
Revenue growth. Reported EPS benefited
from a lower intangible impairment impact
than in 2024.
Key milestones/approvals
Our continued investment in the pipeline
yielded several significant approvals
and milestones in the year, notably for
Saphnelo
,
Beyonttra
,
Datroway
and
Enhertu
.
In December 2025,
Saphnelo
was approved
in the European Union (EU) for subcutaneous
self-administration as a pre-filled pen
for adult patients with systemic lupus
erythematosus (SLE) on top of standard
therapy. In March 2025,
Beyonttra
launched
in Japan where Alexion holds the exclusive
licence to develop and commercialise.
In June 2025,
Datroway
was approved in
the US for the treatment of adult patients
with locally advanced or metastatic
EGFR-mutated NSCLC who have received
prior EGFR-directed therapy and platinum-
based chemotherapy. In December 2025,
As anticipated, 2025 was an unprecedented
year in advancing the 2030 ambition.
Financially, we continued to make strong
progress towards our $80 billion Total
Revenue goal, while sustaining significant
investment in the R&D that will drive growth
well beyond 2030. Making well-informed
capital allocation decisions across R&D,
business development and Capex projects,
while continuing to grow the underlying
business and manage risk remains the
highest priority.
Total Revenue growth
AstraZeneca achieved Total Revenue of
$58.7 billion in 2025, including $58.6 billion
of Product Revenue and $0.1 billion of
Collaboration Revenue, with growth of
9% (CER: 8%). In 2025, we delivered
16 blockbuster medicines in total, including
Tezspire
,
Enhertu
and
Beyfortus
which are
medicines included in collaborations with
alliance partners.
Product Sales grew by 9% (CER: 9%) to
$55.6 billion, with 13 blockbuster medicines.
Demand growth for our Oncology and CVRM
products and new launch indications
in Oncology, delivered continued Product
Sales growth, with Oncology achieving
17% (CER: 16%) and CVRM achieving 3%
(CER: 2%).
Farxiga
($8.4 billion),
Tagrisso
($7.3 billion) and
Imfinzi
($6.1 billion) each
delivering strong results once again, while
Calquence
also showed continued growth.
Within Rare Disease,
Ultomiris
achieved
Product Sales of $4.7 billion, an increase of
20% (CER: 19%), due to increased demand
and continued conversion from
Soliris
.
Enhertu
, in combination with pertuzumab,
was approved in the US for the 1st-line
treatment of adult patients with unresectable
or metastatic HER2-positive breast cancer.
Harmonised listing structure
In November 2025, our shareholders voted
99.36% in favour of the Board’s proposal
to harmonise the Company’s listing structure
in London, Stockholm and New York. On
2 February 2026, AstraZeneca Ordinary
Shares were directly listed on the New York
Stock Exchange, replacing the US listing of
AstraZeneca ADSs on Nasdaq. This new listing
structure will offer flexibility to access the
broadest available pool of capital, including
in the US, and enable more shareholders to
participate in AstraZeneca’s exciting future.
2025 was a year of enormous change,
and the pace of change is set to accelerate.
AI presents opportunities for productivity
and innovation but also requires us to invest
in our data foundations, technology and
people. I am incredibly proud of our
commitment to continuous improvement
and the growth and agility demonstrated
by our leaders, teams, and entire organisation
throughout the year. With this momentum,
we enter 2026 with confidence and a
relentless focus on delivering sustainable
long-term growth.
Aradhana Sarin
Chief Financial Officer
50
AstraZeneca
Annual Report & Form 20-F Information 2025
Corporate Governance
Sustainability Statement
Additional Information
Financial Statements
Strategic Report
Financial Review
Financial Review
P
r
o
d
u
c
t
S
a
l
e
s
C
o
l
l
a
b
o
r
a
t
i
o
n
R
e
v
e
n
u
e
O
p
e
r
a
t
i
n
g
p
r
o
f
i
t
E
P
S
A
l
l
i
a
n
c
e
R
e
v
e
n
u
e
Summary performance in 2025
Reported
CER
Core
2025
$m
2024
$m
% Actual
change
CER
growth
1
$m
Growth
due to
exchange
effects
$m
% CER
change
2025
$m
2024
$m
% Actual
change
- Product Sales
55,573
50,938
9
4,459
176
9
55,573
50,938
9
- Alliance Revenue
3,067
2,212
39
845
10
38
3,067
2,212
39
Product Revenue
2
58,640
53,150
10
5,304
186
10
58,640
53,150
10
Collaboration Revenue
99
923
(89)
(826)
2
(89)
99
923
(89)
Total Revenue
58,739
54,073
9
4,478
188
8
58,739
54,073
9
Cost of sales
(10,633)
(10,207)
4
(527)
101
5
(10,709)
(9,601)
12
Gross profit
48,106
43,866
10
3,951
289
9
48,030
44,472
8
Operating expenses
(34,744)
(34,115)
2
(427)
(203)
1
(29,935)
(27,794)
8
Other operating income and expense
381
252
52
134
(4)
53
383
250
54
Operating profit
13,743
10,003
37
3,658
82
36
18,478
16,928
9
Net finance expense
(1,334)
(1,284)
4
(60)
10
5
(1,092)
(1,169)
(7)
Share of after tax losses of joint ventures and associates
(7)
(28)
(74)
22
(1)
(77)
(7)
(28)
(74)
Profit before tax
12,402
8,691
43
3,620
91
40
17,379
15,731
10
Taxation
(2,169)
(1,650)
31
(499)
(20)
29
(3,170)
(3,001)
6
Profit after tax
10,233
7,041
45
3,121
71
43
14,209
12,730
12
Basic earnings per share ($)
6.60
4.54
45
2.01
0.05
43
9.16
8.21
12
1
As detailed on page 53, CER growth is calculated using prior year actual results adjusted for certain exchange rate effects, including hedging.
2
Effective 1 January 2025, the Group has updated the presentation of Total Revenue on the face of the Statement of Comprehensive Income to include a new subtotal ‘Product
Revenue’ representing the summation of Product Sales and Alliance Revenue. Product Revenue and Collaboration Revenue form Total Revenue. Product Sales and Alliance Revenue
will continue to be presented separately, with the new subtotal providing additional aggregation of revenue types with similar characteristics, reflecting the growing importance of
Alliance Revenue. The comparative period has been retrospectively adjusted to reflect the additional subtotal.
Highlights
Financial performance
Total Revenue: Therapy Areas
Total Revenue: geographical areas
Emerging Markets
12%
growth
(CER: 14%)
CVRM
3%
growth
(CER: 2%)
US
10%
growth
Oncology
15%
growth
(CER: 14%)
Europe
5%
growth
(CER: 1%)
Rare
Disease
4%
growth
(CER: 4%)
Established RoW
5%
growth
(CER: 6%)
R&I
13%
growth
(CER: 12%)
V&I
-13%
decrease
(CER: -14%)
Other
Medicines
-9%
decrease
(CER: -8%)
$55.6bn
9% growth
(CER: 9%)
$3.1bn
39% growth
(CER: 38%)
$13.7bn
37% growth
(CER: 36%)
$0.1bn
-89% decrease
(CER: -89%)
$18.5bn
9% growth
(CER: 9%)
$6.60
45% growth
(CER: 43%)
$9.16
12% growth
(CER: 11%)
Product
Sales
Alliance
Revenue
Operating
profit – Reported
Operating
profit – Core
Collaboration
Revenue
EPS –
Reported
EPS –
Core
51
AstraZeneca
Annual Report & Form 20-F Information 2025
Corporate Governance
Sustainability Statement
Additional Information
Financial Statements
Strategic Report
Financial Review
Business background
and results overview
The business background is covered in
the Healthcare in a Changing World section
from page 6, the Therapy Area Review
from page 12, and the Our Strategy and
Key Performance Indicators section from
page 10, which describe in detail the
business developments of our products.
As described earlier in this Annual Report,
sales of our products are directly influenced
by medical need and are generally paid for
by health insurance schemes or national
healthcare budgets. Our operating results
can be affected by a number of factors other
than the delivery of operating plans and
normal competition.
Over the longer term, the success of our
R&D is crucial, and we devote substantial
resources to this area. The benefits of this
investment are expected to emerge over
the long term and there is considerable
inherent uncertainty as to the scale and
timing of outcomes and their transition
to saleable products.
Measuring performance
Reported and Core performance are referred
to in this Financial Review when reporting on
our performance in absolute terms, but more
often in comparison with earlier years:
•
Reported performance takes into account
all the factors (including those which
we cannot influence, such as currency
exchange rates) that have affected the
results of our business. The Consolidated
Financial Statements have been prepared
in accordance with UK-adopted IAS 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 IASB and IAS
as adopted by the EU.
•
Core performance measures are adjusted
to exclude certain significant items, using
a set of established principles.
Use of non-GAAP performance measures
CER, Core performance measures, Gross
Margin, Operating Margin, Earnings before
interest, taxes, depreciation and amortisation
(EBITDA) and Net debt are non-GAAP
performance measures because they
cannot be derived directly from the
Financial Statements.
By disclosing non-GAAP performance and
growth measures, in addition to our Reported
financial information, we are enhancing
investors’ ability to evaluate and analyse
the financial performance and trends of
our ongoing business and the related key
business drivers. The adjustments are made
to our Reported financial information in order
to show non-GAAP performance measures
that illustrate clearly the impact on our
performance of factors such as changes
in revenues and expenses driven by volume,
prices and cost levels relative to such prior
years or periods. These non-GAAP
performance measures are not a substitute
for, or superior to, financial measures
prepared in accordance with GAAP.
As shown in the 2025 Reconciliation of
Reported results to Core results table on
page 55, our reconciliation of Reported
financial information to Core performance
measures includes a breakdown of the items
for which our Reported financial information
is adjusted, and a further breakdown by
specific line item, as such items are reflected
in our Reported income statement. This
illustrates the significant items that are
excluded from Core performance measures
and their impact on our Reported financial
information, both as a whole and in respect
of specific line items.
Management presents these results
externally to meet investors’ requirements
for transparency and clarity. Core financial
measures are also used internally in the
management of our business performance, in
our budgeting process and when determining
compensation. As a result, Core performance
measures allow investors to differentiate
between different kinds of costs, but they
should not be used in isolation.
Our determination of non-GAAP measures,
and our presentation of them within this
Financial Review, may differ from similarly
titled non-GAAP measures of other companies.
The SET retains strategic management of
the costs excluded from Reported financial
information in arriving at Core financial
measures, tracking their impact on Reported
Operating profit and EPS, with operational
management being delegated on a case-by-
case basis to ensure clear accountability
and consistency for each cost category.
We strongly encourage readers of this
Annual Report not to rely on any single
financial measure but to review our Financial
Statements, including the Notes thereto,
and our other publicly filed reports, carefully
and in their entirety.
Further details of the risks
faced by the business are given
in Risk Overview from page 47
and in the Risk Supplement at
www.astrazeneca.com/
annualreport2025.
For a detailed definition of
Core measures, see page 53.
Also refer to the Summary
performance in 2025 table on
page 51, the 2025
Reconciliation of Reported
results to Core results, and the
Excluded from Core results
tables on page 55, for our
discussion of comparative
growth measures.
52
AstraZeneca
Annual Report & Form 20-F Information 2025
Corporate Governance
Sustainability Statement
Additional Information
Financial Statements
Strategic Report
Financial Review
Financial Review
continued
Non-GAAP measures: definitions
Revenue
Constant exchange rate
(CER) growth rates
Reconciliation, see
page 55.
Definition:
Retranslation of the current year’s performance
at the previous year’s average exchange rates, adjusted
for other exchange effects, including hedging.
Why we use them:
CER measures allow us to focus on the
changes in revenues and expenses driven by volume, prices
and cost levels relative to the prior period. Revenues and cost
growth expressed in CER allow management to understand
the true local movement in revenues and costs, in order
to compare recent trends and relative return on investment.
CER growth rates can be used to analyse revenues in a number
of ways but, most often, we consider CER growth by products
and groups of products, and by countries and regions.
CER revenue growth can be further analysed by revenue
volumes and selling price. Similarly, CER cost growth helps
us to focus on the real local change in costs so that we can
manage the cost base effectively.
Limitations:
CER measures are not always better indicators of
performance. Where countries are subject to high inflation and
currencies that depreciate persistently, adjusting out the effect
of foreign exchange fluctuations could give an overly
optimistic view of growth.
Profitability
Core performance
measures
Reconciliation, see
page 55.
Core performance measures
are adjusted to exclude certain
significant items. In determining the adjustments to arrive at
the Core result, we use a set of established principles relating
to the nature or materiality of individual items or groups of
items, excluding, for example, events which are (i) outside
the normal course of business, (ii) incurred in a pattern that is
unrelated to the trends in the underlying financial performance
of our ongoing business, or (iii) related to major acquisitions,
to ensure that investors’ ability to evaluate and analyse the
underlying financial performance of our ongoing business
is enhanced.
Our Core adjustments are summarised as:
Restructuring costs
, including charges and provisions related
to our global restructuring programmes on our capitalised
manufacturing facilities and IT assets. These can take place
over multiple reporting periods, given the long life-cycle of
our business.
Why we use them:
We adjust for these charges and provisions
because they primarily reflect the financial impact of change
to legacy arrangements, rather than the underlying
performance of our ongoing business.
Intangible amortisation and impairments
, including
impairment reversals but excluding any charges relating
to IT assets. Intangibles generally arise from business
combinations and individual licence acquisitions.
Why we use them:
We adjust for these charges because
their pattern of recognition is largely uncorrelated with
the underlying performance of the business.
Other specified items
, principally comprise acquisition-related
costs and credits, which include the imputed finance charges
and fair value movements relating to contingent consideration
on business combinations, imputed finance charges and
remeasurement adjustments on certain Other payables, arising
from intangible asset acquisitions, remeasurement adjustments
relating to Other payables and debt items assumed from the
Alexion acquisition and legal settlements.
Why we use them:
We adjust for these items to enable a
more meaningful comparison of the performance of acquired
businesses and products to that of internally developed
products, as well as removing charges whose pattern of
recognition is largely uncorrelated to the underlying
performance of the business.
It should be noted that some costs excluded from our Core
results, such as intangible amortisation and finance charges
related to contingent consideration, will recur in future years,
and other excluded items such as impairments and legal
settlement costs, along with other acquisition-related costs,
may recur in the future.
Limitations:
Core results exclude significant costs (such as
restructuring, intangible amortisation and impairments, and
other acquisition-related adjustments), but incorporate
associated benefits, including Product Sales arising from
business combinations, asset acquisitions and assets which
have been amortised, as well as the benefits resulting from
restructuring activities and, as such, they should not be regarded
as a complete picture of the Group’s financial performance,
which is presented in its Reported results. The exclusion of the
adjusting items may result in Core earnings being materially
higher or lower than Reported earnings.
53
AstraZeneca
Annual Report & Form 20-F Information 2025
Corporate Governance
Sustainability Statement
Additional Information
Financial Statements
Strategic Report
Financial Review
Profitability continued
Gross Margin
1
Reconciliation,
see page 55.
Definition:
Gross Margin is defined as Gross profit
as a percentage of Total Revenue.
Why we use it:
This measure sets out gross profitability
when taking account of only direct Cost of sales. It is a key
performance measure of the contribution to fund operating
costs and overall quality of the business.
Limitations:
Gross Margin excludes operating expenses,
like marketing and administrative costs, so it doesn’t reflect
overall profitability.
Operating Margin
Reconciliation,
see page 55.
Definition:
Operating profit as a percentage of Total Revenue.
Why we use it:
This measure sets out profitability derived from
operating activities before the impact of finance costs and tax.
It is a key performance measure of the overall quality of the
operations of the business.
Limitations:
Operating Margin excludes the impact of financing
costs and therefore should not be regarded as a full picture
of revenue performance.
EBITDA
Reconciliation,
see page 59.
Definition:
Reported Profit before tax after adding back Net
finance expense, results from joint ventures and associates,
and charges for Depreciation, amortisation and impairment.
Why we use it:
EBITDA allows us to understand our baseline
profitability, removing any ‘non-operational’ expenses and
non-cash items that are not considered by management
to be reflective of the underlying performance of the Group.
Limitations:
EBITDA does not take account of the cost
of investment to generate revenues, hence is not always
the best indicator of performance.
Cash flow and liquidity
Net debt
Reconciliation,
see page 61.
Definition:
Interest-bearing loans and borrowings and Lease
liabilities, net of Cash and cash equivalents, Other investments
and Net derivative financial instruments.
Why we use it:
Net debt is a measure that provides valuable
additional information regarding the Group’s net financial
liabilities and is a measure commonly used by investors and
rating agencies. It facilitates the tracking of one of our key
financial priorities: deleveraging.
1
Effective 1 January 2025, the Group has replaced the measure ‘Product Sales Gross Margin’ with the measure ‘Gross Margin’. Previously, the measure excluded margin related
to Alliance Revenue and Collaboration Revenue. The new measure is calculated using Gross profit as a percentage of Total Revenue, thereby encompassing all revenue categories,
and is intended to provide a more comprehensive measure of total performance.
Non-GAAP measures: definitions
continued
54
AstraZeneca
Annual Report & Form 20-F Information 2025
Corporate Governance
Sustainability Statement
Additional Information
Financial Statements
Strategic Report
Financial Review
Financial Review
continued
2025 Reconciliation of Reported results to Core results
2025
Reported
$m
Restructuring
costs
$m
Intangible
asset
amortisation
and
impairments
$m
Other
1
$m
2025
Core
2
$m
Core 2025 compared with
Core 2024
2
Actual
growth
%
CER
growth
%
Gross profit
48,106
(138)
32
30
48,030
8
7
Gross Margin
3
%
82
82
–
-1pp
Distribution expense
(579)
–
–
–
(579)
4
4
Research and development expense
(14,232)
171
236
3
(13,822)
13
12
Selling, general and administrative expense
(19,933)
209
4,059
131
(15,534)
3
3
Other operating income and expense
381
(5)
–
7
383
54
55
Operating profit
13,743
237
4,327
171
18,478
9
9
Operating Margin %
23
31
–
–
Net finance expense
(1,334)
–
–
242
(1,092)
(7)
(6)
Taxation
(2,169)
(68)
(825)
(108)
(3,170)
6
5
Basic earnings per share ($)
6.60
0.11
2.26
0.19
9.16
12
11
2024 Reconciliation of Reported results to Core results
2024
Reported
$m
Restructuring
costs
$m
Intangible
asset
amortisation
and
impairments
$m
Other
1
$m
2024
Core
2
$m
Core 2024 compared with
Core 2023
2
Actual
growth
%
CER
growth
%
Gross profit
43,866
569
32
5
44,472
18
20
Gross Margin
3
%
81
82
–
–
Distribution expense
(555)
–
–
–
(555)
3
5
Research and development expense
(13,583)
275
1,090
7
(12,211)
19
19
Selling, general and administrative expense
(19,977)
312
4,286
351
(15,028)
9
11
Other operating income and expense
252
(2)
–
–
250
(81)
(81)
Operating profit
10,003
1,154
5,408
363
16,928
16
22
Operating Margin %
18
31
–
–
Net finance expense
(1,284)
–
–
115
(1,169)
19
15
Taxation
(1,650)
(219)
(1,044)
(88)
(3,001)
31
38
Basic earnings per share ($)
4.54
0.60
2.82
0.25
8.21
13
19
1
See Excluded from Core results table below for further details of other adjustments.
2
Each of the measures in the Core columns is a non-GAAP measure.
3
Refer to page 54 for details on the ‘Gross Margin’ measure which has replaced ‘Product Sales Gross Margin’ effective from 1 January 2025.
Excluded from Core results
Restructuring costs
•
Restructuring costs totalling $237 million (2024: $1,154 million) mainly comprise those incurred on the PAAGR of $232 million
(2024: $1,115 million).
Intangible asset
amortisation and
impairments
•
Amortisation totalling $4,109 million (2024: $3,839 million) relating to intangible assets, except those related to IT. Intangible
impairment charges were $218 million (2024: $1,569 million), excluding those related to IT and other intangibles. Further details
relating to intangible asset amortisation and impairments are included in Note 11 to the Financial Statements from page 151.
Other
•
Other adjustments, excluding taxation adjustments, amounted to $413 million (2024: $478 million).
•
Other adjustments to Reported Selling, general and administrative (SG&A) expense were $131 million (2024: $351 million),
primarily $223 million relating to legal costs and income from net fair value adjustments to contingent consideration balances
of $97 million (2024: expense of $311 million). See Note 20 to the Financial Statements from page 160 for details on contingent
consideration balances, and Note 30 from page 181 for information on legal proceedings ongoing as of 31 December 2025.
•
Other adjustments to Reported Net finance expense of $242 million (2024: $115 million) include discount unwind charges
on liabilities arising from business combinations and on liabilities resulting from the
Enhertu
collaboration agreement.
•
Other adjustments to Reported Taxation amounted to $108 million (2024: $88 million).
55
AstraZeneca
Annual Report & Form 20-F Information 2025
Corporate Governance
Sustainability Statement
Additional Information
Financial Statements
Strategic Report
Financial Review
In 2025, we succeeded in delivering
16 blockbuster drugs. Our five largest selling
products in the year were
Farxiga
($8,492 million),
Tagrisso
($7,254 million),
Imfinzi
($6,063 million),
Ultomiris
($4,718 million) and
Calquence
($3,518 million).
Total Revenue
Total Revenue for 2025 was up 9% (CER:
8%) to $58,739 million, comprising Product
Sales of $55,573 million, up 9% (CER: 9%),
Alliance Revenue of $3,067 million,
an increase of 39% (CER: 38%), and
Collaboration Revenue of $99 million,
a decrease of 89% (CER: 89%).
Product Sales
2025
$m
2024
$m
Actual
growth
%
CER
growth
%
Commentary
1
Product Sales by Therapy Area
Oncology
23,698
20,275
17
16
+
+
+
+
Tagrisso
sales increase by 10% (CER: 10%) reflecting strong
demand growth across all indications and key regions.
Imfinzi
Product Sales increased by 29% (CER: 28%) due
to new launch indications in bladder cancer and lung cancer.
Calquence
continued its growth with an increase of 12%
(CER: 12%), driven by sustained leadership in front-line CLL.
Lynparza
Product Sales increased by 7% (CER: 6%) due to
sustained global PARP inhibitor market leadership across
four tumour types.
CVRM
12,764
12,448
3
2
+
-
Farxiga
sales increased by 10% (CER: 9%), driven by heart
failure and CKD indications despite generic competition
in some markets.
Brilinta
sales decreased by 38% (CER: 38%) driven by
generic entry in the US and Europe in the first half of 2025.
R&I
8,167
7,416
10
10
+
Fasenra
increased by 17% (CER: 16%) due to expanded
severe eosinophilic asthma market share, further fuelled
by first wave market launches for EGPA indication.
V&I
846
1,058
(20)
(20)
-
Synagis
decreased by 35% (CER: 34%) due to competition
from
Beyfortus
.
Rare Disease
9,126
8,668
5
5
+
+
Ultomiris
increased by 20% (CER: 19%) due to increasing
patient demand and further conversion from
Soliris
.
Strensiq
increased by 19% (CER: 18%) due to continued
patient demand and geographic expansion.
Other Medicines
972
1,073
(9)
(8)
Total
55,573
50,938
9
9
2025
$m
2024
$m
Actual
growth
%
CER
growth
%
Commentary
1
Product Sales by geographical area
US
23,444
21,655
8
8
+
+
+
Continued growth of our Oncology medicines.
Tagrisso
increased by 11% due to underlying demand growth.
Imfinzi
increased 35% due to demand growth across all
indications, particularly new launches.
Emerging Markets
15,056
13,535
11
13
+
+
Growth in Oncology and CVRM, driven by
Tagrisso
,
up 12% (CER: 14%), and
Forxiga
, up 17% (CER: 18%).
Ex-China Emerging Markets grew by 18% (CER: 21%),
with continued increases in Oncology and
Farxiga
.
Europe
12,021
10,848
11
7
+
Growth due to Oncology momentum, driven primarily
by
Tagrisso
.
Established RoW
5,052
4,900
3
3
+
Sales increased across all regions driven by strong Oncology
performance and
Ultomiris
growth due to continued conversion
from
Soliris
and strong demand following new launches.
Total
55,573
50,938
9
9
1
In the commentary above, the plus and minus symbols denote the directional impact of the item being discussed, e.g. a ‘+’ symbol beside an Oncology comment indicates that the item
resulted in an increase in the Oncology Product Sales relative to the prior year period.
56
AstraZeneca
Annual Report & Form 20-F Information 2025
Corporate Governance
Sustainability Statement
Additional Information
Financial Statements
Strategic Report
Financial Review
Financial Review
continued
Alliance Revenue
2025
$m
2024
$m
Enhertu
1,798
1,437
Tezspire
673
436
Beyfortus
422
237
Datroway
77
–
Other royalty income
92
91
Other Alliance Revenue
5
11
Total Alliance Revenue
3,067
2,212
Collaboration Revenue
2025
$m
2024
$m
Farxiga:
sales milestones
87
56
Lynparza:
sales milestone
–
600
Beyfortus:
sales milestones
–
167
Koselugo:
sales milestone
–
100
Other Collaboration Revenue
12
–
Total Collaboration Revenue
99
923
Amgen is shown as additional cost of sales.
In the US, where Amgen is recognising
sales, AstraZeneca records its share of
gross profit as Alliance Revenue.
Beyfortus
(Sanofi)
In March 2017, AstraZeneca entered into
an alliance with Sanofi to develop and
commercialise
Beyfortus
jointly. Under the
terms of the global agreement, Sanofi made
an upfront payment of €120 million and agreed
to pay up to €495 million upon achievement
of certain development and sales-related
milestones. All costs and profits are shared
equally. The US element of this collaboration
was subject to a participation agreement
with Sobi, effective from January 2019 until
April 2023, at which point there was an update
to the contractual relationships between
AstraZeneca, Sobi and Sanofi relating to the
future sales of
Beyfortus
. Alliance Revenue
includes AstraZeneca’s 50% share of gross
profits on sales of
Beyfortus
in major markets
outside the US.
Collaboration Revenue
Collaboration Revenue, consisting of upfront
payments and event-triggered milestones,
decreased in the year by 89% (CER: 89%)
to $99 million. Details of our significant
business development transactions which
give rise to Collaboration Revenue are
given below.
Lynparza
/
Koselugo
(MSD)
In July 2017, the Group announced a global
strategic oncology collaboration with Merck
& Co., Inc., known as Merck in the US and
Canada, and MSD in other territories (MSD),
to co-develop and co-commercialise
AstraZeneca’s
Lynparza
for multiple cancer
types and
Koselugo
for neurofibromatosis
type 1. As part of the agreement, MSD agreed
to pay AstraZeneca up to $8.5 billion in total
consideration, including $1.6 billion upfront,
$750 million for certain licence options and
up to $6.2 billion contingent upon successful
achievement of future regulatory and
sales-related milestones. Of the $1.6 billion
upfront payment, $1.0 billion was recognised
as Collaboration Revenue on deal completion
in 2017, with the remaining $0.6 billion deferred
to the balance sheet, virtually all of which has
been released to the Consolidated Statement
of Comprehensive Income as at 31 December
2025. In August 2025, the contractual
arrangements between AstraZeneca and MSD
were updated and simplified relating to the
global development and commercialisation
of
Koselugo
, an oral, selective mitogen-
activated protein kinase (MEK) inhibitor.
Under the updated arrangements
AstraZeneca will fully recognise the costs,
revenues and profits of
Koselugo
globally.
MSD received an upfront payment of
$150 million and will receive deferred
payments totalling up to $400 million.
In addition, MSD is eligible to receive up to
$175 million in potential approval milestones
and up to $235 million in sales milestone
payments, plus single-digit royalties based
on sales. Prior to the updated arrangements,
AstraZeneca fully recognised the revenues
of
Koselugo
but shared equally pre-tax
profits and losses of the product with MSD.
AstraZeneca records all product sales for
Lynparza
, with the share of gross profits
due to MSD under the collaboration being
recorded under Cost of sales. Additionally,
AstraZeneca recognises Collaboration
Revenue relating to regulatory milestones
and sales-related milestones.
•
Prior to 2025, since the start of the
agreement, we have recognised
Collaboration Revenue totalling
$3,810 million, comprising $750 million
resulting from the exercise of options,
$2,100 million in respect of sales-related
milestones and $960 million in respect
of regulatory milestones.
Beyfortus
(Sanofi)
Details of this business development
transaction are summarised in the Alliance
Revenue section on this page.
•
Prior to 2025, since the start of the
agreement, we have recognised
Collaboration Revenue totalling
$451 million, comprising $127 million
(€120 million) of upfront consideration,
$130 million (€120 million) in respect of
regulatory milestones, and $194 million
(€175 million) in respect of sales-related
milestones.
Alliance Revenue
Alliance Revenue, comprising our share of
gross profits, share of revenues and royalties,
increased in the year by 39% (CER: 38%),
to $3,067 million, including $1,798 million
from
Enhertu
and $673 million from
Tezspire
,
which achieved blockbuster status in 2024.
Details of our significant business development
transactions which give rise to Alliance
Revenue are given below.
Enhertu
and
Datroway
(Daiichi Sankyo)
In March 2019, AstraZeneca entered into an
alliance with Daiichi Sankyo to develop and
commercialise
Enhertu
for multiple cancer
types. In July 2020, AstraZeneca entered
into an alliance with Daiichi Sankyo to develop
and commercialise
Datroway
, a TROP2-
directed ADC. In markets where Daiichi Sankyo
is selling the products, AstraZeneca is
entitled to receive a royalty (in Japan)
or a share of costs and income (in other
territories). Share of gross profits and royalty
income from Daiichi Sankyo are recognised
as Alliance Revenue.
Enhertu
launched in
the US in December 2019.
Datroway
launched in Japan in March 2025.
Tezspire
(Amgen)
In 2012, AstraZeneca entered into a
collaboration agreement with Amgen to
co-develop and co-commercialise five
development stage programmes. Of these,
only
Tezspire
remains in the collaboration.
A second active molecule (AZD8630) was
added in 2021. Manufacturing will be
undertaken by Amgen, while commercialisation
activity will be undertaken either jointly,
or by AstraZeneca or Amgen individually,
dependent on the market and on the agreed
terms. AstraZeneca recognises 100% of the
sales as principal in all markets other than
the US, as well as 100% of the associated
cost of sales. In markets other than the US,
where AstraZeneca is recognising sales,
the share of gross margin payable to
57
AstraZeneca
Annual Report & Form 20-F Information 2025
Corporate Governance
Sustainability Statement
Additional Information
Financial Statements
Strategic Report
Financial Review
Key elements of financial performance in 2025
Reported
$m
Actual
growth
%
CER
growth
%
Core
$m
Actual
growth
%
CER
growth
%
Commentary
1
Gross profit
48,106
10
9
48,030
8
7
+
-
-
-
Positive effects from geographic mix.
Negative product mix effects from rising
contributions of products with share of gross
profit arrangements.
Pricing adjustments, for example to sales
reimbursed by the Medicare Part D programme
in the US, diluted the Gross Margin.
Royalty buyout expenses of $235 million,
incurred in the fourth quarter of 2025.
Gross Margin %
82
+1pp
+1pp
82
–
-1pp
Research and development
expense
(14,232)
5
4
(13,822)
13
12
+
+
+
-
Positive data read-outs for high-value
pipeline opportunities that have ungated
large late-stage trials.
Investments in platforms, new technology
and capabilities to enhance R&D capabilities.
Additions from business development.
Reported R&D expense impacted by
intangible asset impairments of $210 million
(2024: $1,065 million).
Selling, general and
administrative expense
(19,933)
–
(1)
(15,534)
3
3
+
-
Market development activities for launches
and to support continued growth in existing
brands.
Prior year Reported SG&A expense included
an impairment charge of $504 million
recorded against the
Andexxa
intangible asset.
Other operating income
and expense
381
52
53
383
54
55
•
Consists primarily of royalties and an upfront
fee on a divestment.
Operating profit
13,743
37
36
18,478
9
9
+
Operating profit increase driven by factors
discussed above, Reported Operating profit
was negatively impacted in prior year by
intangible asset impairments.
Operating Margin %
23
+5pp
+5pp
31
–
–
Net finance expense
(1,334)
4
5
(1,092)
(7)
(6)
-
Core Net finance expense decreased
principally due to changes in interest on tax,
with movements in borrowing expenses
broadly offset by lower interest income on
cash balances.
Profit before tax
12,402
43
40
17,379
10
10
•
Core pre-tax adjustments amounted to
$4,977 million in 2025 (2024: $7,040 million),
comprising $4,735 million adjustments to
Reported Operating profit (2024: $6,925
million) and $242 million to Reported Net
finance expense (2024: $115 million).
Tax rate %
18
18
Basic earnings per share ($)
6.60
45
43
9.16
12
11
1
In the commentary above, the plus and minus symbols denote the directional impact of the item being discussed, e.g. a ‘+’ symbol beside an R&D expense comment indicates that the
item resulted in an increase in the R&D expense relative to the prior year period.
58
AstraZeneca
Annual Report & Form 20-F Information 2025
Corporate Governance
Sustainability Statement
Additional Information
Financial Statements
Strategic Report
Financial Review
Financial Review
continued
Restructuring
Post Alexion Acquisition Group Review
(PAAGR)
In conjunction with the acquisition of Alexion
in 2021, the enlarged Group initiated a
comprehensive review, aimed at integrating
systems, structure and processes, optimising
the global footprint and prioritising resource
allocations and investments. Except as
referenced below, these activities are
expected to be substantially complete
by the end of 2026.
During 2023, the Group identified all
remaining activities and finalised the scope
of the programme. During 2025, the Group
undertook an assessment of the planned
activities within the PAAGR programme,
this resulted in a decrease of $0.4 billion
in expected one-time restructuring costs,
bringing the total expected costs to $4.0 billion,
of which approximately $2.8 billion are cash
costs and $1.2 billion are non-cash costs,
and capital investments of approximately
$2.2 billion.
The PAAGR programme includes the
commencement of work on the planned
upgrade of the Group’s Enterprise Resource
Planning (ERP) IT systems (Axial Project
),
which is expected to be substantially
complete by the end of 2030, resulting
in capital investments for software assets
of $1.3 billion and one-time restructuring
cash costs of $0.5 billion, over the full
course of the project.
Run-rate pre-tax benefits, before
reinvestment, are now expected to be
approximately $2.2 billion by the end
of 2026. In line with established practice,
restructuring costs will be excluded from
our Core (non-GAAP) financial measures.
In 2025, the Group has recorded
restructuring charges of approximately
$0.2 billion in relation to the PAAGR (2024:
$1.1 billion), bringing the cumulative charges
to date under this programme to $3.4 billion.
As at 31 December 2025, the PAAGR has
realised annual run-rate pre-tax benefits,
before reinvestment, of $1.9 billion.
Other programmes
Legacy programmes include the centralisation
of our global R&D footprint. Net costs for
legacy programmes in 2025 were $6 million
(2024: $39 million).
The aggregate restructuring charge incurred
in 2025 across all our restructuring
programmes was $237 million (2024:
$1,154 million). Final estimates for programme
costs, benefits and headcount impact in all
functions are subject to completion of the
requisite consultation in the various areas.
Our priority, as we undertake these
restructuring initiatives, is to work with
our affected employees on the proposed
changes, acting in accordance with relevant
local consultation requirements and
employment law.
Taxation
The Reported and Core tax rates for the year
were both 18%.
The income tax paid for the year was
$2,845 million (2024: $2,750 million).
This was $676 million higher than the
Reported tax charge for the year, which
benefited from a net deferred tax credit
of $164 million (2024: $795 million), related
to updates to estimates of prior period tax
liabilities, payment of prior period tax
liabilities, and the timing differences for cash
payments. Additional information on these
items is contained in Note 5 to the Financial
Statements from page 144.
We pay corporate income taxes, customs
duties, excise taxes, stamp duties, employment,
environmental and many other business
taxes in all jurisdictions in which we operate.
We also collect and pay employee taxes and
other indirect taxes such as value-added tax
in these jurisdictions.
Total comprehensive income
Total comprehensive income increased by
$6,695 million to $12,936 million in 2025.
Other comprehensive income, net of tax, was
$2,703 million, an increase of $3,503 million.
This income was primarily driven by foreign
exchange gains arising on consolidation of
$2,387 million (2024: losses of $957 million).
Reconciliation of Reported Profit before tax to EBITDA
2025
$m
2024
$m
Actual
growth
%
CER
growth
%
Reported Profit before tax
12,402
8,691
43
40
Net finance expense
1,334
1,284
4
5
Share of after tax losses of joint ventures
and associates
7
28
(74)
(77)
Depreciation, amortisation and impairment
5,733
6,688
(14)
(15)
EBITDA
19,476
16,691
17
16
For more information regarding the
AstraZeneca tax policy, see our
website, www.astrazeneca.com.
59
AstraZeneca
Annual Report & Form 20-F Information 2025
Corporate Governance
Sustainability Statement
Additional Information
Financial Statements
Strategic Report
Financial Review
Cash flow and liquidity – for the year
ended 31 December 2025
Net cash generated from operating activities
was $14,575 million (2024: $11,861 million).
This primarily reflects an underlying
improvement in business performance.
Net investment cash outflows were
$7,225 million (2024: $8,353 million).
Investment cash outflows for 2025 include:
•
Payments of contingent consideration
from business combinations of
$1,164 million (2024: $1,008 million),
including $1,054 million paid to Bristol-
Myers Squibb Company (BMS) in respect
of a share of the diabetes alliance.
•
$3,095 million (2024: $2,662 million)
for the purchase of intangible assets,
including $388 million of sales-related
milestones and $300 million of regulatory
milestones paid to Daiichi Sankyo in
respect of
Enhertu
, $501 million relating
to the CinCor asset acquisition and
$425 million for the EsoBiotec asset
acquisition.
•
$66 million (2024: $2,771 million)
for the acquisition of subsidiaries,
net of cash acquired.
Investment cash inflows include:
•
$136 million (2024: $123 million) from
the sale of intangible assets.
Net cash distributions to shareholders were
$5,452 million (2024: $4,672 million), including
proceeds from the issue of share capital of
$40 million (2024: $38 million) less dividends
paid of $4,971 million (2024: $4,629 million)
and own shares purchased by the Employee
Benefit Trust of $521 million (2024: $81 million).
Summary cash flows
2025
$m
2024
$m
Net debt brought forward at 1 January
(24,570)
(22,510)
Profit before tax
12,402
8,691
Sum of changes in interest, depreciation, amortisation, impairment and
share of after tax losses on joint ventures and associates
7,074
8,000
Decrease in working capital and short-term provisions
(1,137)
(893)
Tax paid
(2,845)
(2,750)
Interest paid
(1,316)
(1,313)
Gains on disposal of intangible assets
(168)
(64)
Fair value movements on contingent consideration arising from business
combinations
(97)
311
Non-cash and other movements
662
(121)
Net cash available from operating activities
14,575
11,861
Purchase of intangibles, net of disposals
(2,959)
(2,539)
Acquisition of subsidiaries, net of cash acquired
(66)
(2,771)
Share-based payments attributable to business combinations
–
(3)
Payment of contingent consideration from business combinations
(1,164)
(1,008)
Other capital expenditure (net)
(3,036)
(2,032)
Investments
(7,225)
(8,353)
Dividends
(4,971)
(4,629)
Own shares purchased by Employee Benefit Trust
(521)
(81)
Proceeds from the issue of share capital
40
38
Distributions
(5,452)
(4,672)
Repayment of obligations under leases
(372)
(316)
Payment of Acerta Pharma share purchase liability
–
(833)
Other movements
(330)
253
Net debt carried forward at 31 December
(23,374)
(24,570)
60
AstraZeneca
Annual Report & Form 20-F Information 2025
Corporate Governance
Sustainability Statement
Additional Information
Financial Statements
Strategic Report
Financial Review
Financial Review
continued
Bonds
No bonds were issued in 2025.
In November 2025, AstraZeneca repaid
a 3.375% fixed rate bond of $2,000 million.
In March 2024, AstraZeneca issued
$5,000 million of USD bonds and, in August
2024, AstraZeneca issued $1,517 million
of EUR bonds with a notional face value
of €1,400 million.
In 2024, AstraZeneca repaid floating rate
bank loans of $2,000 million, which matured
in July 2024 and a $1,600 million USD bond,
which matured in May 2024. $1,026 million
was also repaid in respect of a EUR bond,
with a notional face value of €900 million,
which was held in a cash flow hedge and
matured in May 2024.
Net debt
Net debt at 31 December 2025 was
$23,374 million (2024: $24,570 million).
At 31 December 2025, gross debt (interest-
bearing loans and borrowings) was
$29,622 million (2024: $30,295 million).
Of the gross debt outstanding, $3,486 million
is due within one year (2024: $2,676 million).
At 31 December 2025, Cash and cash
equivalents and Other investments totalled
$5,741 million (2024: $5,654 million).
The Group maintains committed bank facilities
to manage liquidity. At 31 December 2025,
the Group held $4,875 million of such
facilities with a maturity date of April 2030.
In January 2026, the maturity of these
facilities was extended by one year
to April 2031. These facilities contain
no covenants and were undrawn at
31 December 2025. The Group regularly
monitors the credit standing of the banks
providing the facilities and currently does
not anticipate any issue with drawing
on the committed facilities should this be
necessary. Advances under these facilities
currently bear an interest rate per annum
based on SOFR (Secured Overnight
Financing Rate) plus a margin.
Bonds issued in 2025 and 2024
Repayment
dates
Face value
of bond
$m
Net book
value of
bond at
31 December
2025
$m
Bonds issued in 2024:
4.8% USD bond
2027
1,250
1,248
4.85% USD bond
2029
1,250
1,247
3.121% EUR bond
2030
704
764
4.9% USD bond
2031
1,000
995
3.278% EUR bond
2033
813
870
5.0% USD bond
2034
1,500
1,490
Total 2024
6,517
6,614
Net debt reconciliation
2025
$m
2024
$m
Cash and cash equivalents
5,711
5,488
Other investments
1
30
166
Cash and investments
5,741
5,654
Overdraft and short-term borrowings
(644)
(330)
Lease liabilities
(1,803)
(1,452)
Current instalments of loans and borrowings
(2,460)
(2,007)
Loans due after one year
(24,715)
(26,506)
Loans and borrowings
(29,622)
(30,295)
Net derivative financial instruments
507
71
Net debt
2
(23,374)
(24,570)
1
Other investments exclude non-current investments, which are included within the balance of $2,223 million
(2024: $1,632 million) in the Consolidated Statement of Financial Position on page 126.
2
The equivalent GAAP measure to Net debt is ‘liabilities arising from financing activities’, which excludes the
amounts for cash and overdrafts, other investments and non-financing derivatives shown above.
Payments due by period
Less than
1 year
$m
1-3 years
$m
3-5 years
$m
Over
5 years
$m
Total
2025
$m
Total
2024
$m
Bank loans and other
borrowings
1
4,164
7,881
7,266
16,906
36,217
38,184
Lease liabilities
382
657
334
430
1,803
1,452
Contracted capital
expenditure
1,420
276
29
2
1,727
1,575
Total
5,966
8,814
7,629
17,338
39,747
41,211
1
Bank loans and other borrowings include interest charges payable in the period, as detailed in Note 28 to the Financial
Statements from page 171.
61
AstraZeneca
Annual Report & Form 20-F Information 2025
Corporate Governance
Sustainability Statement
Additional Information
Financial Statements
Strategic Report
Financial Review
In December 2024, the intangible asset
relating to the product in development,
FPI-2059, was fully impaired by $165 million
due to portfolio prioritisation decisions.
Development of FPI-2265 and AZD2068 are
still ongoing and continue to be a priority.
Gracell
In 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. The
purchase price allocation review has been
completed. The total consideration fair value
of $1,037 million includes cash consideration
of $983 million and future regulatory
milestone-based consideration of $54 million.
Intangible assets of $1,038 million and
goodwill of $136 million were recognised
in the acquisition balance sheet, as well
as a net deferred tax liability of $260 million.
AstraZeneca acquired the cash and cash
equivalents on Gracell’s balance sheet,
which totalled $209 million at the close of
the transaction. Gracell’s results have been
consolidated into the Group’s results from
22 February 2024.
The acquisitions have been accounted for as
business combinations using the acquisition
method of accounting in accordance with
IFRS 3 ‘Business Combinations’.
Acquisitions treated as asset acquisitions
SixPeaks Bio
In October 2025, AstraZeneca, by exercise
of an option, completed the acquisition of
the remaining share capital of SixPeaks Bio
AG (SixPeaks), following an initial investment
of $15 million made in 2024. $170 million was
paid on closing, $30 million to be paid after
two years and up to a further $100 million
is payable on achievement of regulatory
milestones. SixPeaks is investigating
potential therapies for weight-management
with the aim of preserving lean muscle mass.
EsoBiotec
In May 2025, AstraZeneca completed the
acquisition of EsoBiotec SA (EsoBiotec),
a biotechnology company pioneering in vivo
cell therapies that has demonstrated
promising early clinical activity. The
EsoBiotec Engineered NanoBody Lentiviral
(ENaBL) platform uses highly targeted
lentiviruses to deliver genetic instructions
to specific immune cells, with potential use
in oncology and immune-mediated diseases.
AstraZeneca has acquired all outstanding
equity of EsoBiotec for a total consideration
of up to $978 million, on a cash and
debt-free basis. This includes an initial
payment of $425 million, and up to
$575 million in contingent consideration
based on development and regulatory
milestones.
Amolyt
In July 2024, AstraZeneca completed the
acquisition of Amolyt Pharma SAS (Amolyt),
a clinical-stage biotechnology company
focused on developing novel treatments
for rare endocrine diseases. AstraZeneca
acquired all outstanding equity of Amolyt
with consideration of $857 million, principally
relating to $800 million of intangible assets
and $98 million of cash and cash equivalents.
Contingent consideration of up to
$250 million could be paid on achievement
of a regulatory milestone; this potential
liability would be recorded when the relevant
recognition event for a regulatory milestone
is achieved.
Icosavax
In February 2024, AstraZeneca completed
the acquisition of Icosavax, Inc. (Icosavax),
a US-based clinical-stage biopharmaceutical
company focused on developing
differentiated, high-potential vaccines using
an innovative, protein virus-like particle
platform. Consideration totalled $841 million,
principally relating to $639 million of intangible
assets, $141 million of cash and cash
equivalents and $51 million of marketable
securities. Contingent consideration of up
to $300 million could be paid on achievement
of regulatory and sales milestones; these
potential liabilities would be recorded
when the relevant recognition event for
a regulatory or sales milestone is achieved.
Commitments and contingencies
We have commitments and contingencies
which are accounted for in line with Group
Accounting Policies and are described in
Note 30 to the Financial Statements from
page 180.
We also have taxation contingencies. These
are described in Note 30 to the Financial
Statements from page 189.
Off balance sheet transactions and
commitments
We have no off balance sheet arrangements
and our derivative activities are
non-speculative. The table on page 61 sets
out our minimum contractual obligations
at the year end.
Research and development collaboration
payments
Details of future potential R&D collaboration
payments are also included in Note 30
to the Financial Statements from page 180.
As detailed in Note 30, payments to our
partners may not become payable due
to the inherent uncertainty in achieving the
development and revenue milestones linked
to the future payments. We may enter into
further collaboration projects in the future
that may include milestone payments and,
as certain milestone payments fail to
crystallise due to, for example, failure to
obtain regulatory approval, unfavourable
Financial position – 31 December 2025
All data in this section are on a Reported basis.
Acquisitions
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.
Acquisitions treated as business
combinations
FibroGen China
In August 2025, AstraZeneca completed the
acquisition of FibroGen International (Hong
Kong) Limited (FibroGen China) and its
subsidiaries. The purchase price allocation
review has been completed. The total
consideration fair value was $221 million.
Upon closing, in August 2025, AstraZeneca
obtained all rights to roxadustat in China,
including manufacturing in China.
Fusion
In June 2024, AstraZeneca completed the
acquisition of Fusion Pharmaceuticals Inc.
(Fusion), a clinical-stage biopharmaceutical
company developing next-generation
radioconjugates. The purchase price
allocation review has been completed.
The total consideration fair value of
$2,195 million includes cash consideration
of $2,051 million and future regulatory
milestone-based consideration of
$144 million. Intangible assets of
$1,326 million and goodwill of $947 million
were recognised in the acquisition balance
sheet, as well as a net deferred tax liability
of $246 million. AstraZeneca acquired the
cash and cash equivalents on Fusion’s
balance sheet, which totalled $30 million
at the close of the transaction. Immediately
prior to the acquisition, AstraZeneca held an
approximate 1% shareholding in Fusion with
a fair value of $24 million. Fusion’s results
have been consolidated into the Group’s
results from 4 June 2024.
For full details of acquisitions,
see Note 27 to the Financial
Statements from page 170.
For further information,
see page 37 of the Business
Review.
62
AstraZeneca
Annual Report & Form 20-F Information 2025
Corporate Governance
Sustainability Statement
Additional Information
Financial Statements
Strategic Report
Financial Review
Financial Review
continued
Agreement with US Government
In October 2025, AstraZeneca announced
an agreement with the US administration
to lower the cost of prescription medicines
for American patients, see Our regions
on page 32 for further information.
Eccogene
In November 2023, AstraZeneca and
Eccogene entered into an exclusive licence
agreement for AZD5004, an investigational
oral once-daily GLP
-1RA for the treatment
of obesity, type-2 diabetes and other
cardiometabolic conditions. Preliminary
results from the Phase I trial have shown
a differentiating clinical profile for AZD5004,
with good tolerability and encouraging
glucose and body weight reduction across
the dose levels tested compared to placebo.
Under the terms of the agreement, Eccogene
received an initial upfront payment of
$185 million and is eligible to receive up
to an additional $1.8 billion in future clinical,
regulatory, and commercial milestones and
tiered royalties. AstraZeneca is granted
exclusive global rights for the development
and commercialisation of AZD5004 for any
indication in all territories except China, where
Eccogene has the right to co-develop and
co-commercialise alongside AstraZeneca.
We determine these business development
transactions to be significant using a range
of factors. We look at the specific
circumstances of the individual arrangement
and apply several quantitative and qualitative
criteria. As we consider business
development transactions to be an extension
of our R&D strategy, the expected total value
of development payments under the
transaction and its proportion of our annual
R&D spend, both of which are proxies for
overall R&D effort and cost, are important
elements of the determination of the
significance. Other quantitative criteria we
apply include, without limitation, expected
levels of future sales, the possible value of
milestone payments and the resources used
for commercialisation activities (for example,
the number of staff). Qualitative factors we
consider include, without limitation, new
market developments, new territories, new
areas of research and strategic implications.
Capitalisation and shareholder return
Capitalisation
The total number of shares in issue at
31 December 2025 was 1,551 million (2024:
1,551 million). Shareholders’ equity increased
by $7,881 million to $48,667 million at the
year end. Non-controlling interests were
$52million (2024: $85 million).
Dividend and share repurchases
The Board has recommended a second
interim dividend of $2.17 (159.5 pence,
19.49 SEK) to be paid on 23 March 2026.
This brings the full-year dividend to $3.20
(236.2 pence, 29.30 SEK). Against Reported
EPS, the Group had a dividend cover ratio
of 2.06:1 in 2025 (2024: 1.46:1). Against Core
EPS, the Group had a dividend cover ratio
of 2.86:1 in 2025 (2024: 2.65:1). This dividend
is consistent with the progressive dividend
policy, by which, the Board intends to
maintain or grow the dividend each year.
The Board regularly reviews its distribution
policy and its overall financial strategy
to continue to strike a balance between
the interests of the business, our financial
creditors and our shareholders. Having
regard for business investment, funding the
progressive dividend policy and meeting our
debt service obligations, the Board currently
believes it is appropriate to continue the
suspension of the share repurchase
programme which was announced in 2012.
The Board reviews the level of distributable
reserves of the Parent Company annually
and aims to maintain distributable reserves
that provide adequate cover for dividend
payments. At 31 December 2025 , all of the
Profit and loss account reserve of $14,461
million (2024: overwhelming majority of the
Profit and loss account reserve of $13,495
million) was available for distribution, subject
to filing these Financial Statements with
Companies House. When making a
distribution to shareholders, the Directors
determine profits available for distribution
by reference to guidance on realised and
distributable profits under the Companies
Act 2006 issued by the Institute of Chartered
Accountants in England and Wales and the
Institute of Chartered Accountants of
Scotland in April 2017.
The profits of the Parent Company have
been received in the form of receivables
due from subsidiaries. The availability of
distributable reserves in the Parent Company
is dependent on those receivables meeting
the definition of qualifying consideration
within the guidance, and in particular on
the ability of subsidiaries to settle those
receivables within a reasonable period of
time. The Directors consider that, based
on the nature of these receivables and the
available cash resources of the Group and
other accessible sources of funds, at
31 December 2025, the overwhelming
majority (2024: the overwhelming majority)
of the Company’s profit and loss reserves
were available for distribution.
data from key studies, adverse reactions
to the product candidate or indications
of other safety concerns, they may be
replaced by potential payments under
new collaborations.
Investments, divestments and
capital expenditure
We have completed more than 45 major
or strategically important business
development transactions over the past
three years. Our most significant business
development transactions include:
CSPC Pharmaceutical Group
In October 2024, AstraZeneca entered into
an exclusive licence agreement with CSPC
Pharmaceutical Group Ltd (CSPC) to
advance the development of an early-stage,
novel small molecule Lipoprotein (
a
) (Lp(a))
disruptor that has the potential to offer
additional benefits for patients with
dyslipidaemia. This further strengthens the
Group’s cardiovascular portfolio to help
address the major risk factors driving chronic
cardiovascular (CV) disease. Under the terms
of the agreement, AstraZeneca will receive
access to CSPC’s preclinical candidate small
molecule, YS2302018, an oral Lp(a) disruptor,
with the aim of developing this as a novel
lipid-lowering therapy with potential in a
range of CV disease indications, alone or in
combination, including with AstraZeneca’s
oral small molecule PCSK9 inhibitor, AZD0780.
CSPC received an upfront payment of
$100 million and is eligible to receive up
to $1,920 million for further development,
regulatory and commercialisation
milestones, plus tiered royalties.
In June 2025, AstraZeneca entered a strategic
research collaboration with CSPC to discover
and develop preclinical candidates for
multiple targets with the potential to treat
diseases across chronic indications, including
a preclinical small molecule oral therapy for
immunological diseases. CSPC’s research
will utilise its AI-driven, dual-engine efficient
drug discovery platform. CSPC received an
upfront payment of $110 million, and is also
eligible to receive up to $1,620 million in
potential development milestone payments
and up to $3,600 million in sales milestone
payments, plus potential single-digit royalties
based on annual net sales of the products.
AstraZeneca will have rights to exercise
options for exclusive licences to develop
and commercialise worldwide candidates
identified under this agreement.
US investment plans
For more information regarding the
expansion of our US manufacturing
footprint in Virginia and Maryland, see
Operations on page 33.
For more information regarding
Dividends, see Note 25 to the
Financial Statements on
page 169.
63
AstraZeneca
Annual Report & Form 20-F Information 2025
Corporate Governance
Sustainability Statement
Additional Information
Financial Statements
Strategic Report
Financial Review
Financial risk management
Financial risk management policies
Our risk management processes are described
in the Risk Overview from page 47. These
processes enable us to identify risks that can
be partly or entirely mitigated through the
use of insurance. We focus our insurance
resources on the most critical areas, or
where there is a legal requirement, and
where we can get the best value for money
through captive, structured and traditional
insurance placements.
Treasury
The principal financial risks to which we
are exposed are those arising from liquidity,
interest rates, foreign currency and credit.
We have a centralised treasury function
to manage these risks in accordance with
Board-approved policies. Note 28 to the
Financial Statements from page 171 sets out
the relevant policies and the way we manage
these risks and our capital management
objectives, as well as a sensitivity analysis
of the Group’s exposure to exchange rate
and interest rate movements.
Strategic Report
The following sections make up the
Strategic Report, which has been prepared
in accordance with the requirements of the
Companies Act 2006:
•
AstraZeneca at a Glance
•
Chair’s Statement
•
Chief Executive Officer’s Review
•
Healthcare in a Changing World
•
Our Purpose, Values and Business Model
•
Our Strategy and Key Performance
Indicators
•
Therapy Area Review
•
Business Review
•
Section 172(1) Statement
•
Viability Statement
•
Risk Overview
•
Financial Review
•
Sustainability Statement
and has been approved and signed
on behalf of the Board.
M S Bowden
Company Secretary
10 February 2026
Future prospects
As outlined earlier in this Annual Report,
our strategic priorities support delivery
of our Growth Through Innovation strategy,
detailed on page 10.
Full year 2026: additional commentary
Total Revenue is expected to increase
by a mid-to-high single-digit percentage.
Core EPS is expected to increase by a low
double-digit percentage.
The Core tax rate is expected to be between
18-22%.
The Group is unable to provide guidance on
a Reported basis because it cannot reliably
forecast material elements of the Reported
results, including any fair value adjustments
arising on acquisition-related liabilities,
intangible asset impairment charges and
legal settlement provisions. Please refer
to the Cautionary statement regarding
forward-looking statements on page 228.
Currency impact
If foreign exchange rates for February 2026
to December 2026 were to remain at the
average rates seen in January 2026, it is
anticipated that 2026 Total Revenue for the
year would benefit from a low single-digit
percentage positive impact compared to
performance at CER, and Core EPS growth
would be broadly similar to the growth
at CER.
This commentary represents management’s
current estimates and is subject to change.
See the Cautionary statement regarding
forward-looking statements on page 228.
For more information, see
Our Strategy and Key Performance
Indicators from page 10.
64
AstraZeneca
Annual Report & Form 20-F Information 2025
Corporate Governance
Sustainability Statement
Additional Information
Financial Statements
Strategic Report
Financial Review
Financial Review
continued
Corporate
Governance
Contents
Chair’s Introduction
66
Corporate Governance Overview
67
Board of Directors
68
Senior Executive Team (SET)
70
Corporate Governance Report
71
Nomination and Governance Committee Report
79
Science Committee Report
81
Sustainability Committee Report
82
Audit Committee Report
83
Directors’ Remuneration Report
90
65
AstraZeneca
Annual Report & Form 20-F Information 2025
Corporate Governance
Sustainability Statement
Additional Information
Financial Statements
Strategic Report
Corporate Governance
“The Board of Directors has a crucial role to
play in promoting the long-term success of any
company and I am grateful to my fellow Directors
for the part they have played in AstraZeneca’s
continued growth and many achievements.”
The Audit Committee has an important role
to play in monitoring the integrity of financial
and sustainability reporting, examining the
effectiveness of internal controls, risk
management and compliance. Key activities
in 2025 included consideration as well as
in-depth reviews related to our key risks,
which involved close monitoring of the
ongoing investigations by Chinese authorities
previously reported. The Committee also
paid particular attention to tariffs and pricing
negotiations with the US Government, and
the potential impact on the Group.
During the year, the Audit and Sustainability
Committees worked together on
developments in the reporting and regulatory
environment in relation to sustainability-
related disclosures, which are reflected in
the content of this year’s Annual Report. The
Sustainability Committee also continued its
important work on the implementation and
communication of our sustainability strategy.
The Science Committee works on assuring
the quality of our science with a particular
focus during the year on our strategic
science capabilities, such as cell therapy
and precision medicines.
The Remuneration Committee focuses
on ensuring that our reward framework
supports AstraZeneca’s long‑term success
and worked closely with other Board
Committees to set transparent and stretching
performance targets that are aligned with
our strategy and in the best interest of our
shareholders. Diana Layfield, who has been
a Board member since 2020, joined the
Remuneration Committee in May.
Non-Executive Directors
In addition to welcoming Rene Haas and
Birgit Conix to the Board at the start of 2025,
Karen Knudsen joined as a Non-Executive
Director at the end of the AGM in April.
Karen is a globally-recognised cancer
scientist with broad executive experience
in oncology, and is well-positioned in respect
of the Board’s work. Karen’s deep knowledge
of the US healthcare industry and medical
academic environment also makes her
a great fit for AstraZeneca. At the same time
as joining the Board, Karen also became
a member of the Science and Sustainability
Committees, reflecting the broad contribution
she can make to AstraZeneca’s success.
At the same Meeting, we said goodbye to
Deborah DiSanzo and Andreas Rummelt,
who stood down as Non-Executive
Directors. On behalf of the whole Board,
I would like to thank them both for the
significant contributions they made to our
work, as well as the insights and experience
they brought to bear as Committee members.
Shareholders and other stakeholders
One of the Board’s important activities is to
engage with shareholders and consider the
interests of other stakeholders. I find this to
be a particularly valuable activity which, in
2025, included engagements and advocating
for AstraZeneca at the World Economic
Forum in Davos, Expo 2025 in Osaka and
Global Health Week in Abu Dhabi. I am
particularly energised by the passion,
dedication and creativity that is evident
whenever I meet AstraZeneca employees.
The Executive Directors and I also maintain
regular dialogue with investors to communicate
our strategy and our governance principles
which is why, once again, I look forward
to chairing our 2025 digitally‑enabled AGM
in April and engaging with as many of you
as possible.
Michel Demaré
Chair
The Board
The Board is responsible for setting our
strategy and policies, overseeing risk and
corporate governance, and monitoring
progress towards meeting our objectives and
annual plans. In 2025, our decisions included
pipeline-strengthening transactions, as well
as approving the Group’s capital allocation,
including capital expenditures. This included
investments in new and expanded
manufacturing facilities in Virginia and
Maryland, US that form part of our planned
$50 billion investment in the US by 2030.
Harmonised listing
The strength, diversity and breadth of
experience of our Board was routinely
demonstrated during our deliberations,
none more so than in the discussion
of our harmonised listing structure across
the London, New York and Stockholm
Stock Exchanges.
Factors we considered included the strategic
rationale for the harmonisation and its
alignment with our long-term strategy for
sustainable growth, as well as the benefits
of a global listing to widen the pool of
investors in AstraZeneca, especially US
domestic institutional and retail investors.
We also wanted to ensure that we have the
flexibility to access the broadest available
pool of capital, including in the US. Finally,
it was important to us that investors could
trade AstraZeneca Ordinary Shares across
the three exchanges, while the Company
remains UK-listed, headquartered, and
tax resident.
Board Committees
A sound governance and committee structure
underpins the Board’s effectiveness, and
I am grateful to the Chairs of the Board
Committees for the important contribution
they make to that effectiveness and the
additional responsibilities they bear.
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Corporate Governance
Sustainability Statement
Additional Information
Financial Statements
Strategic Report
Chair’s Introduction
Chair’s Introduction
The Board’s responsibilities include setting
our strategy and policies, overseeing risk
and corporate governance, and monitoring
progress towards meeting our objectives
and annual plans. It is accountable to our
shareholders for the proper conduct of
the business and our long-term success,
and seeks to represent the interests of
all stakeholders.
The CEO, CFO and the SET take the lead
in developing our strategy; proposals are
reviewed and constructively challenged by
the Board, before the strategy is approved.
The Directors are collectively responsible
for the success of the Group. The Board
maintains and periodically reviews a list
of matters that can only be approved by the
Board. Matters that have not been expressly
reserved to the Board in this way are
delegated to the CEO or one of the Board’s
five Committees. The diagram below
illustrates this governance structure.
Governance structure
Audit
Committee
Report from page 83
Nomination and
Governance Committee
Report from page 79
Remuneration
Committee
Report from page 90
Science
Committee
Report from page 81
Sustainability
Committee
Report from page 82
The Board has delegated some of its powers to the CEO and operates with the assistance of five Committees:
Board
Corporate Governance Report from page 71
Attendance in 2025
Board Committee membership and meeting attendance in 2025
Board/Committee Chair
Director
Appointment
date
1
Board
2
Audit
Committee
Remuneration
Committee
Nomination and
Governance
Committee
Science
Committee
Sustainability
Committee
Non-Executive Chair and Executive Directors
Michel Demaré
01/09/2019
9/9
6/6
4/4
Pascal Soriot
01/10/2012
9/9
Aradhana Sarin
01/08/2021
9/9
Non-Executive Directors
Euan Ashley
01/10/2020
9/9
4/4
7/7
Philip Broadley
27/04/2017
8/9
6/6
6/6
4/4
Birgit Conix
01/02/2025
7/8
4/4
Rene Haas
01/01/2025
8/8
Karen Knudsen
11/04/2025
6/6
4/4
3/3
Diana Layfield
01/11/2020
9/9
4/4
6/7
Anna Manz
01/09/2023
9/9
6/6
Sheri McCoy
01/10/2017
8/9
6/6
6/6
4/4
3/3
Tony Mok
01/01/2019
9/9
7/7
Nazneen Rahman
01/06/2017
9/9
6/6
4/4
7/7
3/3
Marcus Wallenberg
05/04/1999
8/9
4/7
2/3
Deborah DiSanzo –
retired on 11 April 2025
01/12/2017
3/3
2/2
Andreas Rummelt –
retired on 11 April 2025
01/08/2021
3/3
1
Date of first appointment or election to the Board.
2
Five Board meetings in 2025 were held by video conference and four were held in person in Cambridge and London, UK; Gaithersburg, US; and Abu Dhabi, UAE.
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Corporate Governance
Sustainability Statement
Additional Information
Financial Statements
Strategic Report
Corporate Governance Overview
Corporate Governance Overview
Michel Demaré
NG
R
Non-Executive Chair of the Board
Skills and experience:
Michel was
previously Vice-Chairman of UBS
Group AG (2010-2019), Chairman
of Syngenta and Syngenta
Foundation for Sustainable
Agriculture (2013-2017), Chairman
of SwissHoldings (2013-2015) and
Chairman of IMD Business School
(2020-2025). Between 2005 and
2013, Michel was CFO of ABB Ltd
and interim CEO during 2008. He
joined ABB from Baxter International
Inc., where he was CFO Europe from
2002 to 2005. Prior to that, he spent
18 years at The Dow Chemical
Company, serving as CFO of Dow’s
Global Polyolefins and Elastomers
division between 1997 and 2002.
Other appointments:
Michel is a
Non-Executive Director of Vodafone
Group plc and Louis Dreyfus Int’l
Holding BV.
Philip Broadley
A
NG
R
Senior independent Non-Executive
Director
Skills and experience:
Philip was
previously Group Finance Director of
Prudential and Old Mutual and served
as a Non-Executive Director of Legal
& General Group. He has served as
Chairman of the 100 Group of Finance
Directors and as a member of the
Takeover Panel. He is a Fellow of the
Institute of Chartered Accountants in
England and Wales. Philip graduated
in Philosophy, Politics and Economics
from St. Edmund Hall, Oxford
University where he is a St Edmund
Fellow, and holds an MSc in
Behavioural Science from LSE.
Other appointments:
Philip is the
Non-Executive Chair of Lancashire
Holdings Limited.
Pascal Soriot
Executive Director and CEO
Skills and experience:
Pascal brings
a passion for science and medicine,
significant experience in established
and emerging markets, strength
of strategic thinking and execution,
a successful track record of
managing change and executing
strategy, and the ability to lead a
diverse organisation. He served as
COO of Roche’s pharmaceuticals
division and, prior to that, as CEO
of Genentech. Pascal has worked in
senior management roles in several
major companies in Australia,
New Zealand, Japan, the US
and Switzerland before joining
AstraZeneca in the UK. He is a
Doctor of Veterinary Medicine and
holds an MBA from HEC Paris. In
2022, Pascal received a knighthood
for services to life sciences and
leadership in the global response
to the COVID-19 pandemic.
Other appointments:
Pascal is on
the Board of Agilent Technologies
Inc. and Sustainable Markets
Initiative Limited.
Euan Ashley
Sc
NG
Non-Executive Director
Skills and experience:
Euan studied
physiology and medicine at Glasgow
University, trained at Oxford University
Hospitals NHS Trust, and gained
a DPhil in cardiovascular cellular
biology and molecular genetics
at the University of Oxford. In 2002,
Euan moved to Stanford University,
where his research focuses on
mechanisms of cardiovascular
health and disease. His laboratory
leverages AI, digital health tools,
and biotechnology partnerships
to advance clinical research. Euan
has received honours from the
White House for contributions to
personalised medicine and the
American Heart Association’s Medal
of Honor for precision medicine.
Other appointments:
Euan is the
Arthur L. Bloomfield Professor of
Medicine, Genetics and Biomedical
Data Science, Chair of the
Department of Medicine at Stanford
University, and a member of the
Board of Directors at DexCom, Inc.
Aradhana Sarin
Executive Director and CFO
Skills and experience:
Before joining
AstraZeneca, Aradhana was CFO
for Alexion, responsible for driving
strategic growth, financial
performance and business
development. She has operational
experience in biopharma, plus more
than 20 years of professional
experience at global financial
institutions and extensive knowledge
of global healthcare systems.
This includes tenures at Citi Global
Banking, UBS, and JP Morgan.
Aradhana trained as a medical doctor
in India and spent two years
practising in both India and Africa.
She completed her medical training
at the University of Delhi and
received her MBA from Stanford
Business School.
Other appointments:
Aradhana
is on the Board of Governors of
the American Red Cross and is
an Independent Director and Audit
Committee member of Anheuser-
Busch InBev.
Birgit Conix
A
Non-Executive Director
Skills and experience:
Birgit served
Sonova as Group CFO and a
Management Board member from
2021 to 2025. Previously, she was
Group CFO and Executive Board
member at TUI from 2018 to 2021.
Before TUI, she served as Group
CFO of Telenet Group from 2013
to 2018. Prior to that, she held senior
positions at Johnson & Johnson,
Heineken, Tenneco and Reed
Elsevier. Birgit holds an MBA from
the Booth School of Business,
University of Chicago, and a Master
of Science in Business Economics
from Tilburg University.
Other appointments:
Birgit is a
member of ASML’s Supervisory
Board, where she is Chair of the
ESG Committee and a member
of the Audit Committee. She also
serves on Ricola’s Board where
she is Chair of the Audit Committee.
French
1
British
5
Canadian
1
American
4
Swedish
1
Belgian
2
Women
7
Men
7
0-3 years
4
Birgit Conix
Rene Haas
Karen Knudsen
Anna Manz
6 years plus
6
Philip Broadley
Michel Demaré
Sheri McCoy
Tony Mok
Nazneen Rahman
Marcus Wallenberg
3-6 years
2
Euan Ashley
Diana Layfield
Gender split of Directors
Directorsʼ nationalities
Length of tenure of
Non-Executive Directors
Board composition
as
at 10 February 2026
Committee membership key
Committee
Chair
NG
Nomination and
Governance
A
Audit
Sc
Science
R
Remuneration
Su
Sustainability
Deborah DiSanzo
A
Formerly Non-Executive
Director of the Board
(Retired in April 2025)
Andreas Rummelt
Su
Formerly Non-Executive
Director of the Board
(Retired in April 2025)
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Corporate Governance
Sustainability Statement
Additional Information
Financial Statements
Strategic Report
Board of Directors
Board of Directors
as at 10 February 2026
Diana Layfield
R
Sc
Non-Executive Director
Skills and experience:
Diana has
broad global business experience
across technology, life sciences and
financial services. She has held
senior leadership roles at Google,
Standard Chartered Bank, as the
CEO of a start-up technology
company, and in Healthcare and
Life Sciences at McKinsey & Co.
Previously at Google, Diana was
General Manager, Search
International & Growth (including
Product and Engineering) and
President, EMEA Partnerships and
Vice-President, ‘Next Billion Users’.
Until December 2020, Diana was a
Non-Executive Director of Aggreko
plc. She has a BA from Oxford
University and an MA in International
Economics and Public Administration
from Harvard University.
Other appointments:
Diana is the
CEO of Monzo Group, Chair of British
International Investment plc, and
a Council Member of the London
School of Hygiene & Tropical Medicine.
Anna Manz
A
Non-Executive Director
Skills and experience:
Anna was
CFO and a member of the Board of
Directors of London Stock Exchange
Group plc until 2024. From 2016 to
2020, she was an Executive Director
and the CFO of Johnson Matthey Plc
and, before that, spent 17 years at
Diageo plc in a number of senior
finance and strategy roles. She brings
extensive expertise in accounting,
corporate finance and M&A, as well
as experience of business
diversification, transformation and
strategy. Anna was previously a
Non-Executive Director of ITV plc
and served on its Audit Committee
and Remuneration Committee
during most of that period.
Other appointments:
Anna is CFO
of Nestlé S.A. and a member of
Nestlé’s Executive Board.
Sheri McCoy
R
A
NG
Su
Non-Executive Director
Skills and experience:
Until
February 2018, Sheri was CEO and
a Director of Avon Products, Inc. and,
prior to that, had a 30-year career
at Johnson & Johnson (J&J), latterly
serving as Vice-Chairman of the
Executive Committee, responsible
for the Pharmaceuticals and
Consumer business segments.
Sheri joined J&J as an R&D scientist
and subsequently managed
businesses in every major product
sector. She holds a BSc in Textile
Chemistry from the University of
Massachusetts Dartmouth, an
MSc in Chemical Engineering
from Princeton University and an
MBA from Rutgers University.
Other appointments:
Sheri
serves on the Boards of Stryker,
Kimberly-Clark, Galderma and
Sail Biomedicines. She is also an
industrial adviser for EQT, and
in connection serves as Chair
of Parexel and Chair of Dechra.
Tony Mok
Sc
Non-Executive Director
Skills and experience:
Tony is the
Li Shu Fan Medical Foundation
endowed Professor and Chairman of
the Department of Clinical Oncology
at the Chinese University of Hong
Kong. His work includes multiple
aspects of lung cancer research,
including biomarker and molecular
targeted therapy in lung cancer.
Tony is the Past President of the
International Association for the
Study of Lung Cancer and a past
Board member of the American
Society of Clinical Oncology. He has
achieved numerous awards including
the European Society for Medical
Oncology (ESMO) Lifetime
Achievement Award, Giant of Cancer
Care, and the Bronze Bauhinia Star.
Other appointments:
Tony is
Non-Executive Director of
HUTCHMED (China) Limited,
member of the Scientific Advisory
Board of Prenetics Global Limited
and serves on the Board of Insighta.
Nazneen Rahman
Su
NG
R
Sc
Non-Executive Director
Skills and experience:
Nazneen
has significant experience in rare
disease and cancer genomics and
sustainable healthcare. She qualified
in medicine from Oxford University,
is an accredited specialist in medical
genetics and has a PhD in molecular
genetics. Nazneen was Professor of
Genetics at the Institute of Cancer
Research, Head of Cancer Genetics
at the Royal Marsden NHS
Foundation Trust, and founder and
Director of the TGLclinical Genetic
Testing Laboratory until 2018. In
2020, Nazneen founded YewMaker
to build science-based sustainable
healthcare solutions. Nazneen has a
strong commitment to open science
and has garnered numerous awards,
including a CBE in recognition of her
contribution to medical sciences.
Other appointments:
Nazneen is
CEO of YewMaker and Director of the
Sustainable Medicines Partnership.
Marcus Wallenberg
Sc
Su
Non-Executive Director
Skills and experience:
Marcus has
international business experience
across various industry sectors,
including the pharmaceutical
industry from his directorship
with Astra prior to 1999.
Other appointments:
Marcus is
Chair of Skandinaviska Enskilda
Banken AB, Saab AB, Wallenberg
Investments AB and FAM AB. He
is Vice-Chair of Investor AB and
Vice-Chair of EQT AB. Marcus is also
Chair of the Royal Swedish Academy
of Engineering Sciences and a Board
member of the Knut and Alice
Wallenberg Foundation.
Rene Haas
Non-Executive Director
Skills and experience:
Rene has
been CEO of Arm and a Board
member since February 2022,
leading Arm’s successful IPO in
September 2023. He has extensive
experience in technology, computing
and AI from leadership roles in the
semiconductor industry. Rene joined
Arm in 2013 and previously served
as President of Arm’s IP Product
Groups. Prior to Arm, Rene held roles
at NVIDIA, Scintera Networks and
Tensilica. Based in Silicon Valley, he
frequently engages with technology
hubs in the UK, Europe and Asia.
Rene earned a Bachelor of Science
in Electrical and Electronics
Engineering from Clarkson University
and completed the Stanford
University Graduate School of
Business Executive Program.
Other appointments:
Rene is CEO
of Arm and serves on the Boards of
Arm China and of SoftBank Group
(Arm’s majority owner).
Karen Knudsen
Sc
Su
Non-Executive Director
Skills and experience:
Karen served
as Hilary Koprowski Endowed
Professor and Chair of Cancer
Biology at Thomas Jefferson
University, Enterprise Director of
the Sidney Kimmel Comprehensive
Cancer Center and EVP of Oncology
Services at Jefferson Health. Most
recently, she served as CEO of the
American Cancer Society. Previous
leadership roles include serving on
the NCI Board of Scientific Advisors
and on the Board of the American
Association for Cancer Research.
Other appointments:
Karen is CEO
of the Parker Institute for Cancer
Immunotherapy, Professor Emerita
of Thomas Jefferson University and
the Sidney Kimmel Comprehensive
Cancer Center, Board Member of 3T
Biosciences, Independent Director of
Exai Bio, Board Member of Research
America and of Paradigm Health,
and Board Advisor for ArteraAI.
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Corporate Governance
Sustainability Statement
Additional Information
Financial Statements
Strategic Report
Board of Directors
The 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.
SET members who sit on the Board:
•
Pascal Soriot, CEO
•
Aradhana Sarin, CFO
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 R&I. Previously, Sharon
was SVP, Head of Research and
Product Development of Alexion.
Sharon undertook a PhD in molecular
biology from NYU and a postdoctoral
fellowship at Stanford University.
Marc Dunoyer
CEO, Alexion and Chief Strategy
Officer, AstraZeneca
Marc served as AstraZeneca’s
Chief Financial Officer until 2021.
Previously, he served as Global
Head of Rare Diseases at GSK and
(concurrently) Chairman of GSK
Japan. He holds an MBA from HEC
Paris and a Bachelor of Law degree
from Paris University.
Jeff Pott
Chief Human Resources Officer,
Chief Compliance Officer and
General Counsel
Jeff is responsible for all aspects
of AstraZeneca’s People strategy
and leads our HR, Compliance, Legal
and IP functions. Jeff joined in 1995,
before which he specialised in
pharmaceutical product liability
and antitrust litigation. He holds
a Bachelor’s degree from Wheaton
College and a Juris Doctor Degree
from Villanova University.
Pam Cheng
Executive Vice-President,
Global Operations, IT & Chief
Sustainability Officer
Pam was appointed Executive
Vice-President, Operations & IT
in June 2015 and took on the
sustainability strategy in January
2023. Prior to AstraZeneca, she
worked for Merck/MSD, Universal
Oil Products, Union Carbide and GAF
Chemicals. She holds Bachelor’s
and Master’s degrees in chemical
engineering from Stevens Institute
of Technology and an MBA from
Pace University.
David Fredrickson
Executive Vice-President, Oncology
Haematology Business Unit
Dave is responsible for driving
growth and maximising commercial
performance of the AstraZeneca
global Oncology and Haematology
portfolio. Before joining AstraZeneca,
Dave worked at Roche/Genentech,
where he served in several functions
and leadership positions. Dave is a
graduate of Georgetown University
in Washington DC.
Iskra Reic
Executive Vice-President,
International
Iskra 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 and New Zealand.
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.
Ruud Dobber
Executive Vice-President,
BioPharmaceuticals Business Unit
Ruud is responsible for the disease
areas of CVRM, R&I and V&I. Ruud
joined AstraZeneca in 1997 and held
various executive roles externally
before this. Ruud was previously
a research scientist in immunology
and ageing, holding a PhD in
Immunology from the University
of Leiden, the Netherlands.
Susan Galbraith
Executive Vice-President,
Oncology Haematology R&D
Susan has global accountability for
Oncology and Haematology R&D
from discovery through to late-stage
development. Susan joined
AstraZeneca in 2010, having previously
worked at Bristol-Myers Squibb.
She graduated in medicine from
Cambridge University, has a PhD from
the University of London and qualified
as a Clinical Oncologist in 2001.
Further information on the SET
members is available on our
website, www.astrazeneca.com.
See Board of Directors
biographies from page 68.
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Corporate Governance
Sustainability Statement
Additional Information
Financial Statements
Strategic Report
Senior Executive Team (SET)
Senior Executive Team (SET)
at 10 February 2026
The Board ensures that the necessary
resources, policies and practices are in place
to help the Company meet its objectives and
measure its performance against them. The
Group Internal Audit (GIA) and Compliance
functions provide quarterly reports to the
Audit Committee on their activities and
annual reviews of key themes, processes
and systems (including arrangements for
whistleblowing). The Board has full oversight
of these matters by way of the Audit
Committee Chair’s reports to the Board
after each Audit Committee meeting.
Board members are also able to access the
information provided to the Audit Committee.
B. Purpose, culture and strategy
The Board believes that our Purpose,
to push the boundaries of science to deliver
life-changing medicines, positions
AstraZeneca for long-term sustainable success.
Our Code of Ethics and Values underpin how
we work together and the behaviours that
drive our success and support our culture.
The Board is responsible for setting our
strategy and policies, overseeing risk and
corporate governance, and monitoring
progress towards meeting our objectives
and annual plans. The Board conducts an
annual review of the Group’s overall strategy.
C. Board decisions and outcomes
The Board makes decisions in the context
of the Company’s strategy and objectives.
Examples of such decisions and their
outcomes can be found in the Connecting
with our stakeholders section on pages 74
to 76 and the Principal Decisions section
on page 77.
D. Stakeholder engagement
The Board aims to ensure a good dialogue
is maintained with shareholders, so that
their views are understood and considered.
The Board also engages with and considers
wider stakeholder groups, including the
workforce, in its decision making.
E. Workforce policies and practices
Based on our Values, expected behaviours
and key policy principles, our Code of Ethics,
which applies to all employees, including the
Board, empowers employees to make
decisions in the best interests of the Group,
the Company, society and the patients we
serve. Employees are able to raise concerns
anonymously via the AZ Ethics helpline.
2. Division of responsibilities
F. Chair of the Board
Michel Demaré, our Non-Executive Chair,
is responsible for leading the Board and
its overall effectiveness in directing the
Company. Mr Demaré was first appointed
to the Board in 2019 and was considered
to be independent on his appointment
as Chair in April 2023.
G. Board composition, independence
and division of responsibilities
The composition of the Board is set out
on pages 68 and 69, with the majority
consisting of independent Non-Executive
Directors.
Directors’ independence is considered
annually by the Board. In December 2025,
the Board considered the independence
of the Non-Executive Directors, other than
the Chair of the Board, for the purposes
of the Code, the US Nasdaq Listing Rules
and (in anticipation of the harmonised listing
structure becoming effective) the NYSE
Listing Rules. Taking into account the
recommendations set out in the Code,
the Nasdaq Listing Rules and NYSE Listing
Rules, the Board considers that all the
Non-Executive Directors, except Marcus
Wallenberg, are independent. Mr Wallenberg
was appointed as a Director of Astra in
May 1989 and subsequently became
a Director of the Company in 1999. He is
also a Non-Executive Director of Investor
AB, which has a 3.33% interest in the issued
share capital of the Company as at
31 January 2026. Due to his overall length
of tenure and relationship with a significant
shareholder, the Board does not believe
that he can be determined independent.
As well as being a Non-Executive Director
of AstraZeneca and Chair of the Board’s
Sustainability Committee, Nazneen Rahman
is the Director of the Sustainable Medicines
Partnership (SMP), a multi-stakeholder,
not-for-profit collaboration with the aim
of advancing the environmental sustainability
of medicines. AstraZeneca is a strategic
collaborator in the SMP. Dr Rahman has
recused herself from acting as the lead
contact for the SMP in its relationship
with AstraZeneca, and this relationship,
including project work and overall
programme management, is handled by
other members of the SMP team.
The Directors are collectively responsible
for the success of the Group. The roles of
the Board, Board Committees, Chair, Senior
independent Non-Executive Director and
CEO are documented, as are the Board’s
reserved powers and delegated authorities.
The Board’s responsibilities and the
Statement of compliance
Our statement of compliance below describes
how we applied the principles in the 2024
UK Corporate Governance Code (the Code)
for the year ended 31 December 2025.
Throughout the accounting period, we have
complied with all the provisions of the Code.
A copy of the Code can be found on the
Financial Reporting Council’s (FRC)
website, www.frc.org.uk.
Additional information for Swedish
shareholders
The Company is incorporated under the
laws of England and Wales and its shares
are listed on the London Stock Exchange,
Nasdaq Stockholm and the New York Stock
Exchange (NYSE). In accordance with the
Company’s listing on the London Stock
Exchange, it applies the principles set out
in the Code. As a result of its listing on
Nasdaq Stockholm and in accordance
with Swedish regulations, the Company
is required to disclose the material ways
in which its corporate governance practices
differ from those applied by Swedish
companies following the Swedish Corporate
Governance Code (the Swedish Code).
A summary of the material ways in which
the corporate governance practices applied
by the Company differ from the principles
of the Swedish Code, and a general
description of the main differences in
minority shareholders’ rights between
the Company’s place of domicile (the UK)
and Sweden, are available on our website,
www.astrazeneca.com/investor-relations/
corporate-governance.html.
1. Board leadership and Company
purpose
A. Role of the Board and resources
and control
The Board’s role is to promote the long-term
sustainable success of the Company.
The Directors’ diverse range of skills,
experience and industry knowledge, and
ability to exercise independent and objective
judgement, help the Board to operate
effectively in its oversight of delivery of the
Group’s strategy, generation of shareholder
value and contributions to wider society.
The Board’s effective operation is
underpinned by a sound governance
structure, described on page 67. Through
a programme of regular Board and Board
Committee meetings, Directors receive
information on AstraZeneca’s financial
performance, the R&D pipeline and critical
business issues. The Board is accountable
to our shareholders for the proper conduct
of the business and our long-term success,
and seeks to represent the interests
of all stakeholders.
For more information on:
Our Purpose, Values and
Business Model, see pages 8
and 9.
Our Code of Ethics, see pages
34 and 35.
Stakeholder engagement, see
pages 74 to 76 and throughout
the Strategic Report. Our
Section 172(1) Statement is
set out on page 46.
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Corporate Governance
Sustainability Statement
Additional Information
Financial Statements
Strategic Report
Corporate Governance Report
Corporate Governance Report
| Compliance with the UK Corporate Governance Code
members’ time commitment to the Company
is sufficient to fulfil their duties as Directors
and fully discharge their obligations to
shareholders, particularly in the case of the
Chairs of Board Committees. For the Chair
of the Board, generally, as a basic
commitment, it is expected that they would
need to devote about 40% of their time
or the equivalent of not less than 90 days
per annum in the fulfilment of their duties.
When contemplating taking up additional
appointments, Non-Executive Directors
consult the Chair to ensure thought is
given to any potential impact on their time
commitment to AstraZeneca. Careful
consideration is given to the nature of the
potential appointment and the type of
company involved (for example, whether
the company is a public listed company
or privately held), to help assess the likely
time requirement. For significant additional
appointments, the full Board would typically
be involved in this process.
In 2025, Pascal Soriot was appointed as
a Director of Agilent Technologies Inc. and,
in 2026, Diana Layfield was appointed as
CEO of Monzo Group. These appointments
were considered and approved by the Board
in advance on the basis that they would not
prevent or reduce the ability of either
Director to perform their roles for
AstraZeneca to the required standard.
The Board recognises that Mr Wallenberg
has a wide portfolio of other roles, but
believes he has brought, and continues
to bring, considerable business experience
and makes a valuable contribution to the
work of the Board, which his portfolio of
other roles supports. The Board is also
satisfied that he is able to devote sufficient
time to discharge his responsibilities as a
Director, as demonstrated by his attendance
at Board meetings, as detailed on page 67.
The performance of the Non-Executive
Directors is assessed annually as part
of the Board’s performance evaluation,
as described on page 78.
Subject to specific Board approval,
Executive Directors may accept external
appointments as non-executive directors
of other companies and retain any related
fees paid to them, provided that such
appointments are not considered by the
Board to prevent or reduce the ability of the
executive to perform his or her role within
the Group to the required standard.
I. Company Secretary
The Company Secretary is responsible to
the Chair for ensuring that all Board and
Board Committee meetings are properly
conducted, that the Directors receive
appropriate information prior to meetings
to enable them to make an effective
contribution, and that governance
requirements are considered and
implemented. The 2025 Board
performance evaluation set out on
page 78 provides details of the effective
operation of the Board.
3. Composition, succession and
evaluation
J. Appointments and succession planning
The Nomination and Governance Committee
and, where appropriate, the full Board,
regularly review the composition of the
Board and succession plans for both SET-
and Board-level positions. Directors have
regular contact with, and access to,
succession candidates for SET positions.
There is a formal, rigorous and transparent
procedure for appointments to the Board,
which is based on merit and objective
criteria and takes into account the
importance of diversity, inclusion and equal
opportunities when considering potential
appointments. The Nomination and
Governance Committee Report details
the process for appointments approved
during the year on pages 79 and 80.
All Directors retire at each AGM and may
offer themselves for re-election by
shareholders. The Notice of AGM will give
details of those Directors seeking election
or re-election.
K. Skills, experience and knowledge
When the Nomination and Governance
Committee reviews the composition of the
Board and its Committees, it uses a matrix
that records the skills and experience of
current Board members and compares this
with the skills and experience it believes
are appropriate to the Company’s overall
business and strategic needs, both now and
in the future. The Committee is also mindful
of Directors’ lengths of tenure and the need
to refresh Board membership over time.
L. Board evaluation
In 2025, the Board undertook an internal
Board performance review. More information
on the review process, including the results
and actions taken, can be found on page 78.
governance structure by which it delegates
authority are outlined in the Corporate
Governance Overview on page 67.
The CEO can exercise all the powers of
the Board, except for those matters that
are reserved to, and can only be approved
by, the Board or a Committee of the Board.
From January 2026, the matters reserved
for the Board include: the appointment,
termination and remuneration of any Director;
approval of the annual budget; approval of
any item of fixed capital expenditure or any
proposal for the acquisition of an investment
or business which exceeds $500 million;
approval of any proposal for the disposal
of an investment or business which exceeds
$300 million; the raising of capital or loans
by the Company (subject to certain exceptions);
the giving of any guarantee in respect of any
borrowing of the Company; and allotting
shares of the Company.
H. Non-Executive Directors’ role
and time commitment
The Non-Executive Directors exercise
objective judgement in respect of Board
decisions, providing scrutiny and challenge
and holding management to account.
Non-Executive Directors also offer strategic
guidance and specialist advice based on
their breadth of experience and knowledge.
The Non-Executive Directors regularly meet
without the Executive Directors or other
management present.
Philip Broadley was appointed Senior
independent Non-Executive Director
on 1 March 2021 and serves as a sounding
board for the Chair and as an intermediary
for the other Directors when necessary.
As Senior independent Non-Executive
Director, he is also available to shareholders
if they have concerns that contact through
the normal channels of Chair or Executive
Directors has failed to resolve, or for which
such contact is inappropriate. During the
year, no shareholders asked to meet with
Mr Broadley formally in his role as Senior
independent Non-Executive Director.
As well as their work in relation to formal
Board and Board Committee meetings,
Non-Executive Directors commit time
throughout the year to meetings and
telephone calls with various levels of
executive management and other key
stakeholders, visits to AstraZeneca’s sites
throughout the world (whether in person
or virtually) and, for new Directors, induction
sessions and site visits. The Chair and
individual Board members ensure that Board
For more information on:
The work of the Nomination and
Governance Committee, see
pages 79 and 80.
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Corporate Governance
Sustainability Statement
Additional Information
Financial Statements
Strategic Report
Corporate Governance Report
Corporate Governance Report
| Compliance with the UK Corporate Governance Code
continued
5. Remuneration
P. Remuneration policies and practices
The Remuneration Committee is responsible
for determining, approving and reviewing
the Company’s global remuneration
principles and frameworks, to ensure that
they support the strategy of the Company
and are designed to promote long-term
sustainable success.
Q. Developing executive
remuneration policy
The Remuneration Committee routinely
reviews the Directors’ Remuneration Policy
and executive remuneration arrangements
to ensure they continue to promote the
delivery of the long-term strategy and
support the Company’s ability to recruit and
retain executive talent to deliver against that
strategy. The Committee also considers
remuneration arrangements in the context
of corporate governance best practice and
arrangements for the wider workforce, and
regularly consults with its major investors
on remuneration proposals. No Director
is involved in determining their own
remuneration arrangements or outcomes.
R. Remuneration outcomes and
independent judgement
To ensure it maintains independent
judgement when determining remuneration
outcomes, the Remuneration Committee
considers a range of data, including detailed
business and individual performance
information, and also consults with other
Board Committees to utilise their expertise
when determining performance outcomes.
Further information on risk
management and controls
Global Compliance and GIA
Through our compliance programme and
three lines of defence risk management
framework (line management; Risk and
Compliance functions; GIA), Global
Compliance helps the Group achieve its
priorities and do business the right way. It
takes a global approach that addresses key
risk areas, including those related to third
parties and anti-bribery/anti-corruption.
Its work helps us to reinforce compliant
behaviours through our Code of Ethics,
policies, training, advice and guidance.
We also conduct risk assessment activities
and foster a culture where individuals can
raise concerns.
We take alleged compliance breaches and
concerns seriously. We investigate and take
appropriate disciplinary and remediation
action to address and prevent reoccurrence
through internal functions and external
advisers. Depending on breach severity,
the Group may need to disclose and/or
report the incident to a regulatory
or government authority.
Global Compliance provides assurance
insights to the Audit Committee on compliance
matters. GIA carries out a range of audits
and periodically reviews the assurance
activities of other Group functions.
The results from these activities are reported
to the Audit Committee. Global Compliance
and GIA share outcomes and coordinate
reporting on compliance matters throughout
the organisation. GIA is established by the
Audit Committee on behalf of the Board
and acts as an independent and objective
assurance function guided by a philosophy
of adding value to improve the operational
control framework of the Group. The scope
of GIA’s responsibilities encompasses, but
is not limited to, the examination and
evaluation of the adequacy and effectiveness
of the Group’s governance, risk management
and internal control processes in relation
to the Group’s defined goals and objectives.
Among others, internal control objectives
considered by GIA include:
•
Compliance with significant policies,
plans, procedures, laws and regulations.
•
Consistency of operations or programmes
with established objectives and goals,
and effective performance.
•
Safeguarding of assets.
Based on its activity, GIA is responsible
for reporting significant risk exposures
and control issues identified to the Board
and to senior management, including fraud
risks, governance issues and other matters
needed or requested by the Audit
Committee. It may also evaluate specific
operations at the request of the Audit
Committee or management, as appropriate.
4. Audit, risk and internal control
M. Internal and external audit
The Audit Committee is responsible
for reviewing the relationship with, and
independence of, our external auditor, PwC.
The Committee maintains a policy for the
pre-approval of all audit services and
audit-related services undertaken by the
external auditor, the principal purpose of
which is to ensure that the independence
of the external auditor is not impaired.
The Audit Committee also reviews the
independence and effectiveness of GIA.
N. Fair, balanced and understandable
assessment
The Board considers this Annual Report,
taken as a whole, to be fair, balanced and
understandable, and provides the
information necessary for shareholders
to assess AstraZeneca’s position and
performance, business model and strategy.
The Board’s assessment is described
on page 86.
The Board and the Audit Committee review
the Company’s quarterly financial results
announcements to ensure they present
a fair, balanced and understandable
assessment of the Company’s position
and prospects to shareholders.
O. Risk management
The Board is responsible for the Company’s
risk management system and internal
controls, and their effectiveness. The Board
delegates some responsibilities for risk
management oversight to the Audit
Committee, such as quarterly reviews
of the Company’s principal and key active
risks. During 2025, the Directors continued
to review the effectiveness of our system
of controls, risk management (including
a robust assessment of the emerging and
Principal Risks) and high-level internal
control processes. This included an annual
Governance and Assurance Report to all
Directors, which is considered in detail
by the Audit Committee and reviewed
by the Board.
Any areas of concern are highlighted in the
Audit Committee Chair’s update to Directors
at the relevant Board meeting and discussed
by the Board. The report is based on a full
year-end review of the Company’s risk and
control processes (incorporating financial,
operational and compliance controls) and
findings from assurance processes.
The Directors believe that the Group
maintains an effective, embedded system
of risk management and internal controls
and complies with the FRC’s guidance.
For more information on:
The work of the Remuneration
Committee, see from page 90.
Our resources and controls,
see the Audit Committee Report
from page 83.
External audit, see page 85
and Note 31 to the Financial
Statements on page 191.
Internal Audit, see page 85.
Our Viability Statement, see
page 46 and the Risk Overview
from page 47.
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Corporate Governance
Sustainability Statement
Additional Information
Financial Statements
Strategic Report
Corporate Governance Report
Considering the interests of our stakeholders is
fundamental to our Group’s strategy. The following
table identifies our most strategically significant
stakeholders and summarises the engagement that
has been undertaken by management during 2025.
Patients and patient networks
Payers
Investor community
Overview
Significance of the
stakeholder to the
business
Patients are at the heart of what we do.
Our stakeholders include individual
patients, caregivers and patient advocacy
organisations. We listen to their
experiences, embedding these insights
into every aspect of our work, and partner
with them to enable access to high-
quality, resilient healthcare systems,
ensuring that the medicines and services
we develop have the greatest impact
on their lives.
AstraZeneca works closely with payers,
including governments and medical
insurance companies among others,
to understand the impact of pricing
medicines on public and private budgets.
The Board and management maintain
regular and constructive dialogue with
investors to communicate our strategy.
We provide objective information about
performance to enable investors to put
a fair value on the Company and ensure
our continued access to capital.
Interests
Issues and factors
which are most
important to the
stakeholder group
•
Gathering and incorporating diverse
insights throughout the drug
development process to minimise patient
burden and measure outcomes they
care about most.
•
Ensuring healthcare systems are
designed and delivered with the patient
in mind.
•
Providing transparent, accessible
information.
•
Ensuring the safety, efficacy and
affordable accessibility of our medicines.
•
Sustainable access to safe and
effective innovative medicines.
•
Pricing of medicines, including
breakthrough therapies and impact
on public budgets.
•
Containing reimbursement expenditure.
•
Attracting business investment.
•
Investing in research and scientific
collaborations.
•
Financial and commercial
performance.
•
R&D strategy, resource allocation
and pipeline development.
•
Culture, values and behaviours.
•
Exposure to geopolitical and
macroeconomic risks.
•
Sustainability and governance matters.
Engagement
Examples of
engagement in 2025
•
Increased number of diverse patient
engagements throughout drug
development.
•
Involved patients and caregivers in
co-creation of multiple programmes.
•
Expanded patient support and
affordability programmes.
•
Collaborated with patient advocacy
organisations on key healthcare system
transformation projects, enabling
access to improved healthcare
and medicines across the globe.
•
Engaged governments and
policymakers to increase understanding
of the AstraZeneca business model,
to support investment in life sciences
and to improve access to new medicines.
•
Engaged in discussions on evolving
the current reimbursement system
for medicines in the US.
•
Hosted site visits and tours at our
manufacturing and R&D facilities
for international and local politicians.
•
Ongoing communications with
shareholders, including quarterly
results calls, in-person and virtual
meetings and roadshows.
•
Gave online presentations, including
investor events at medical conferences,
and a webinar on our sustainability
progress.
•
Receptions hosted by the Chair
of the Board.
Outcomes
Actions which
resulted
•
Delivered impactful and actionable
insight to drive patient-focused
drug development.
•
Increased patient support programmes.
•
Drove global consensus and supported
the community to strengthen national
healthcare systems.
•
Established working relationships
with key government stakeholders.
•
Organised regular meetings and events
to increase understanding of how
governments can better support life
sciences investment and improve
patient access to new medicines.
•
Maintained access to senior and
next-level/operational management,
including increased virtual
engagement.
•
Continued to streamline external-
facing materials to provide increased
transparency, following discussion
with shareholders.
•
Increased focus on sustainability
matters within results announcements
and shareholder engagements.
Corporate Governance
Sustainability Statement
Additional Information
Financial Statements
Strategic Report
Corporate Governance Report
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Corporate Governance Report
| Connecting with our stakeholders
Healthcare professionals
Academic and R&D partners
Commercial collaborators and partners
Overview
Significance of the
stakeholder to the
business
Healthcare professionals (HCPs) are the
interface with patients. They provide insights
into clinical trial design, and prescribe and
advise patients on administering medicines.
They also provide safety reports, collaborate
in clinical studies and assist with the ethical
and transparent distribution of medicines.
We collaborate with academic institutions
and non-profit R&D partners globally
to access the best science, stimulate
innovation and deliver life-changing
medicines to patients.
Partnering is an increasingly important
part of our business. By combining
forces, AstraZeneca and our partners
can accelerate innovative science
to bring life-changing medicines
to patients.
Interests
Issues and factors
which are most
important to the
stakeholder group
•
Development of medicines for unmet
medical need.
•
Education and information on advances
in medical science.
•
Accurate and balanced information
on licensed medicines, including
up-to-date safety data.
•
Uninterrupted supply of quality medicines.
•
Ethical and transparent interactions
with industry.
AstraZeneca had approximately 1,500 active
academic collaborations during 2025:
•
To advance innovative technology
and science.
•
To address key scientific challenges.
•
To access the next generation of
science leaders.
•
Sharing vision and values.
•
Developing innovative medicines
and improving access to them.
•
Cultivating trust and transparency
in research, disclosures and
relationships with stakeholders.
•
Willingness to collaborate with industry
peers to optimise outcomes for
common stakeholders, e.g. patients,
physicians, policymakers and
healthcare systems.
Engagement
Examples of
engagement in 2025
•
Engaged in HCP educational events,
advisory boards and clinical trials.
•
Responded to more than 146,800 HCP
enquiries and processed adverse event
reports from HCPs which contribute
to the understanding of the safety profile
of our medicines.
•
We support more than 1,000 early career
positions in R&D globally, including
apprentices, graduates, placement
students, sponsored PhDs, postdoctoral
researchers and clinical fellows.
•
Through our Open Innovation programme,
we openly share molecules, data and
scientific expertise with academic
researchers and start-ups; we currently
have multiple ongoing clinical trials, over
150 ongoing preclinical studies and
collaborative research projects, and
we are participating in more than 20
public-private partnership projects aimed
at addressing key scientific challenges.
•
Held joint seminars, education sessions,
science days and consortia with research
institutions such as: Partners of Choice
Network, Yale University, Stanford
Medicine and Moffitt Cancer Center.
•
Regular alliance governance meetings
to ensure collaborative approach
across organisations.
•
Joint responsibility for deliverables
and outcomes across functions
at all levels.
•
Multiple discussions with regulators,
policymakers, patient groups and
clinicians, to inform development and
commercial strategy to best meet
patient needs.
Outcomes
Actions which
resulted
•
Advisory boards informed clinical research
and product strategy.
•
Clinical studies have led to new products.
•
Exchange of information supported HCP
clinical decision making.
•
Enabled new technologies, new target
identification and validation, and new
biomarkers.
•
Scientific publications and knowledge
sharing.
•
Hosting apprenticeship, studentship,
postgraduate and postdoctoral
programmes to facilitate scientific
discovery.
•
Optimisation of outcomes through
combined skillsets and use of
innovative technologies/platforms
to support development of new
medicines.
•
Multiple late-stage trials initiated
across multiple disease/patient types.
•
Accelerated launch of new medicines
in unique areas.
•
Greater collaboration and relationships
with industry partners and stakeholders.
Corporate Governance
Sustainability Statement
Additional Information
Financial Statements
Strategic Report
Corporate Governance Report
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How the Board engages with stakeholders
For more information on how
management and the Board
have considered modern
slavery, see the Audit
Committee Report from page 83,
Human Rights on page 217 and
AstraZeneca’s Modern Slavery
Act Statement, which is
available on our website,
www.astrazeneca.com.
Community
We believe that creating a positive impact
for people, society and the planet requires
meaningful investments in the communities
where we live and work, with a focus on the
underserved. Our community investment
activities support non-profit organisations
all over the world to advance health equity,
increase access to care, drive scientific
innovation and build healthy and resilient
communities for all.
Workforce
We continue to build talent internally by
developing critical skills across our workforce,
ensuring we have the capabilities to achieve
our Ambition 2030. Our employees are a key
part of our strategy, and we are committed
to being a great place to work.
Health authorities
We engage regulators globally about the
manufacture, development, review, approval
and marketing of our products.
In addition to the principal stakeholders described on pages 74 and 75, the Board considers the following stakeholder groups important
for the business operations and strategic direction of the Company.
Governments
AstraZeneca partners closely with
governments around the world to promote
health, support healthcare research and
innovation, facilitate equitable access to
innovative care solutions, and build resilient
and sustainable healthcare systems.
Multilateral and non-governmental
organisations
AstraZeneca partners with multilateral
organisations and non-governmental
organisations (NGOs) to improve health
equity, strengthen health systems resilience
and tackle climate change, all in support
of the UN Sustainable Development Goals.
In health equity, we focus on ensuring
representation in our science, including
clinical trials and genomics research, and
improving healthcare delivery through
equitable screening, diagnosis and treatment
programmes. Our community investments
help to prevent disease through youth health
promotion and education, and support
urgent humanitarian needs, including
disaster relief and product donations.
Media
An active and constructive relationship with
the media is important to build trust with the
Company’s key stakeholders by transparently
reporting on the Group’s activities, including
the results of key trials and business
updates, as well as seeking to enhance and
protect the reputation of the organisation.
Suppliers and third-party providers
We work with a broad range of third-party
suppliers to provide the goods and services
needed to deliver life-changing medicines
to patients globally. Our Procurement
function operates efficiently and effectively
to drive collaboration with those third-
parties, fostering innovative, ethical and
sustainable ways of working across the
entire supply chain.
The stakeholder table on pages 74 and 75
sets out management’s main interactions
with certain key stakeholders. Feedback
from these interactions is provided to the
Board in a variety of ways, which allows
the Board to understand the key interests
of stakeholders and consider them in its
decision-making process.
The Board undertakes additional direct
engagement with stakeholders to better
understand their interests and concerns, so
these can be factored into its decision making.
Examples of the Board’s engagement are set
out in the following columns. Information on
how stakeholders and other factors were
considered in the Board’s principal decisions
in 2025 is set out on the following page.
Full Board/Other
•
During 2025, a number of Directors,
including the CEO, the CFO and the
Chair, met investors at roadshows and
in one-on-one and group meetings.
•
The 2025 AGM and the November 2025
general meeting regarding the harmonised
listing structure were digitally-enabled
and broadcast live, which allowed the
Company’s geographically diverse
shareholder base to participate in the
meeting and engage with the Board. The
digitally-enabled format allowed Directors
and shareholders to join from locations
across the globe.
•
Investor reports and financial analysts’
consensus data are made available to
the Board. Feedback is regularly provided
to the Board by management on their
interactions with investors.
•
The CEO and the CFO, along with
other members of management, met
governmental agencies and regulators
to discuss matters including the pricing
of medicines and equitable access.
•
The CEO and other members of
management attended a number of
scientific conferences in 2025, relevant
to the Company’s main areas of R&D
and Commercial activity.
•
During the 2025 World Economic Forum
in Davos, Switzerland, the Chair and
senior leaders met with more than
25 governments and participated in four
speaking engagements, highlighting the
need to advance the sustainable
transformation of health systems.
•
The Chair was elected to the Steering
Committee of the European Round Table
of Industry (ERT) in May 2025. Through ERT
plenaries, as well as Steering Committee
and other meetings, the Chair engaged
high-level officials from the EU, Denmark,
Italy and the UK on strengthening
European economic competitiveness
and building more resilient and
sustainable health systems.
•
The CEO, CFO and the Chair, regularly
engaged with employees through
in-person and online events, including
‘townhalls’ and ‘fireside chat’ sessions.
Employees had the opportunity to ask
questions in advance or during sessions.
•
As part of its scheduled meetings during
the year:
–
In London, UK, the Board hosted
select employees for a lunch.
–
In Cambridge, UK, the Board met
employees, including scientists and
commercial teams, and external
stakeholders, including academics
and scientists.
–
In Gaithersburg, US, the Board hosted
select employees for lunch and hosted
a ‘townhall’ meeting.
–
In Abu Dhabi, UAE, the Board hosted
select employees for a dinner, hosted
a ‘townhall’ meeting and met external
stakeholders, including Abu Dhabi
government officials, through a series
of site visits and presentations.
•
The Committees of the Board also engage
with employees and other stakeholders on
matters within their areas of responsibility.
For further information on Board
Committees’ engagement activities, see:
–
Science Committee Report on page 81
–
Sustainability Committee Report on
page 82
–
Audit Committee Report from page 83
–
Directors’ Remuneration Report from
page 90.
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Corporate Governance
Sustainability Statement
Additional Information
Financial Statements
Strategic Report
Corporate Governance Report
Corporate Governance Report
| Connecting with our stakeholders
continued
•
Assessed potential candidates’ experience
through review and meetings to confirm
they possessed the expertise and skills
necessary to contribute to the Company’s
long-term strategy, support management
in delivering long-term shareholder value
and life-changing medicines, and uphold
the highest standards for business conduct.
•
Considered the independence of potential
candidates by assessing potential conflicts
of interest and affiliations to maintain
objectivity and unbiased judgement
in Board deliberations.
Harmonised listing structure
In September 2025, the Board approved the
harmonisation of the Company’s listing
structure, involving a direct listing of
AstraZeneca Ordinary Shares on the New
York Stock Exchange to replace the listing of
American Depositary Shares on the Nasdaq
in the US. Following shareholder approval
of the adoption of new Articles of Association
at a general meeting in November 2025,
the harmonised listing structure became
effective on 2 February 2026.
The Board considered:
I
L
How the Board had regard
to these matters:
•
Reviewed the strategic rationale for
the harmonised listing structure and
confirmed its alignment with the
Company’s long-term strategy for
sustainable growth.
•
Considered the benefits to the Company
of a global listing structure to widen the
pool of investors in AstraZeneca,
especially US domestic institutional and
retail investors, and ensuring that the
Group has the flexibility to access the
broadest available pool of capital,
including in the US.
•
Considered the benefits to investors
of being able to trade their interests in
AstraZeneca Ordinary Shares across the
London, New York and Stockholm Stock
Exchanges, with the Company remaining
UK listed, headquartered and tax resident
and continuing to be included in the
FTSE 100 index and the OMX Stockholm
30 index.
Capital expenditure
In December 2025, the Board approved the
Group’s overall capital expenditure for 2026
which include investments by the Company
in new and expanded manufacturing
facilities in Virginia and Maryland, US which
form part of the Company’s planned
$50 billion investment in the US by 2030.
The Board considered:
E
I
P
L
How the Board had regard
to these matters:
•
Considered the Group’s Purpose, to
push the boundaries of science to deliver
life-changing medicines to patients, and
how the Company’s capital investments
would support this Purpose.
•
Reviewed the alignment of the capital
spend to strategic priorities, business
needs and delivery of Ambition 2030.
•
Evaluated how the Company’s capital
investments would support the robust
pipeline of new modalities and growth
ambitions and enhance competitive
position.
Key
E
Employees
I
Investors
P
Patients
L
The long-term success
of the Company
M
Maintaining high standards
of business conduct
Pipeline strengthening transactions
During 2025, the Board approved the
acquisition of EsoBiotec and the
restructuring of the
Koselugo
collaboration
as part of its commitment to strengthen the
Group’s pipeline and financial performance.
The Board considered:
I
P
L
M
How the Board had regard
to these matters:
•
Reviewed the strategic rationale for the
transactions and confirmed alignment with
long-term growth objectives and delivery
of the Ambition 2030 goals.
•
Considered the benefits to patients
if the Group was able to accelerate the
development of novel treatments, which
could potentially deepen clinical
responses and improve patient outcomes.
•
Assessed the financial impact of the
transactions on the Group’s viability
and capital allocation priorities, alongside
the potential financial benefits from
the transactions.
Appointment of Karen Knudsen
as Non-Executive Director
In February 2025, the Board approved
Karen Knudsen’s proposal for election as a
Non-Executive Director at the Company’s
AGM. Following shareholder approval at the
AGM, Karen’s appointment became effective
on 11 April 2025. Karen joined the Science
Committee and Sustainability Committee
upon her appointment.
The Board considered:
I
L
M
How the Board had regard
to these matters:
•
Considered the Board’s diversity, time
commitments of potential candidates and
other relevant governance considerations,
including UK Corporate Governance Code
provisions, as well as Board and Board
Committee skills requirements and
succession planning considerations.
•
Considered changes to the wider business
environment, such as the increasing
importance of technology and AI, and
changes in modalities, and what skills
the Board needed to ensure that it could
provide appropriate oversight to help
the Company continue to grow in such
an environment.
Set out below are examples of how key stakeholders, Section 172(1) of the Companies Act 2006 duties and other matters were considered
by the Board when making its Principal Decisions in 2025.
Principal Decisions in 2025
For our Section 172(1)
Statement, see page 46.
For more information, on:
Acquisitions and collaborations,
see Business development
on page 37 of the Business
Review.
Committees’ composition and
succession planning, see the
Nomination and Governance
Committee Report, on pages 79
and 80.
Investments, divestments and
capital expenditure, see US
investment plans on page 63.
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| Principal Decisions
•
In-person and virtual engagement with the
workforce, including ‘townhall’ meetings,
‘fireside chats’, Q&A sessions and lunches
when Board members visit our sites.
In 2025, Directors, individually and jointly,
visited various Group sites or hosted
in-person ‘townhall’ meetings across
the world, including in Belgium, Canada,
China, Germany, India, Ireland, Italy,
Mexico, Poland, Switzerland, the United
Arab Emirates, the US and the UK. This
approach maximises the reach of these
engagements and ensures interactions
across diverse roles and geographies,
as well as facilitating understanding
of business operations.
•
The Board’s review of key workforce
data included the global workforce Pulse
survey, the biannual Workforce Culture
and Employee Engagement Report, and
data relating to talent, development,
inclusion and diversity initiatives. These
reports help demonstrate how our Values
and behaviours are embedded throughout
the workforce. Where the Board has
concerns that the culture does not reflect
our Values, the Board seeks assurances
from management that remedial action
has been taken and, where necessary,
requests senior management’s
attendance at Board meetings to discuss
corrective actions.
•
The Remuneration Committee’s evaluation
of reward across the workforce
(as described on page 109).
Where required, issues or concerns
raised by the workforce are fed back to
management and discussed by the Board.
The Board believes that these holistic
approaches provide comprehensive access
to the views of the workforce, regardless
of location, and deliver meaningful insights
to inform strategic decision making.
AstraZeneca is committed to being a great
place to work. Engagement with our
employees and wider workforce is an
important element in ensuring an environment
where everyone is respected, openness is
valued, diversity is celebrated, and every
voice is heard. Our global workforce plays
a critical role in upholding our Values,
delivering our strategic priorities, and
sustaining both short- and long-term
performance. For AstraZeneca, ‘global
workforce’ includes full-time and part-time
employees, fixed-term workers and external
contractors working full- or part-time,
anywhere in the world.
The Board believes that engagement with
the workforce is a collective responsibility.
Consequently, the Board has chosen not
to implement any of the three methods set
out in the Code. Instead, it utilises a range
of established mechanisms and
communication channels across the Group
to ensure meaningful engagement with the
global workforce. These include:
2025 meeting. Ahead of the full Board
discussion, the Chair used the report to
guide his annual individual discussions
with each Director to reflect on their
contributions to the Board and identify
personal development needs. The Company’s
last externally facilitated Board evaluation
took place in 2024.
2025 outcomes and actions against
prior year recommendations
Key conclusions from the 2025
evaluation include:
•
The Board continues to operate effectively
and remains well-balanced in terms
of expertise, geographic representation
and gender diversity.
•
All Committees continue to demonstrate
strong performance and a high level
of commitment to their roles.
The evaluation identified several priorities
for 2026, including:
•
Continued focus on: strategy and
navigating macroeconomic, geographical
and regulatory challenges; portfolio
prioritisation and capital allocation.
•
Board and executive succession planning;
and new technologies, including AI.
•
Continuing to bring significant issues
to the Board in a timely fashion to facilitate
effective discussion.
•
Continuing to build and foster relationships
among Board members and supporting
the integration of newer Board members.
In response to recommendations from
the 2025 evaluation, the following actions
were taken:
•
The Board received enhanced reporting
from the Nomination and Governance
Committee, including regular updates
on Executive Director succession planning.
•
The Board received briefings
on geopolitical risk and the wider
pharmaceutical landscape.
•
The content of the Board’s annual strategy
review was enhanced to provide more
in-depth focus on incremental or newer
areas of the business and more
competitive analysis and increased
review of strategic trends.
As part of the Board performance
evaluation, Directors were asked
to consider the following areas:
• Board composition
• Stakeholder oversight
• Board dynamics
• Board Committees
• Strategic oversight
• Risk oversight
• Succession planning
and people oversight
• Board materials and support
• Areas for future focus
2025 overview
During the year, the Board carried out its
annual evaluation of overall performance,
including that of its Committees and
individual Directors. The 2025 evaluation
was conducted internally, with support from
Christopher Saul Associates (CSA), an
independent, external corporate governance
advisory firm. CSA has no other commercial
relationship with the Company or any
individual Directors.
The evaluation process involved an online
questionnaire covering a broad range
of topics. CSA summarised the key themes
from the responses. The responses and
CSA’s summary were reviewed and
discussed by the Board at its December
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| Engaging with our workforce
Corporate Governance Report
| Board performance evaluation
“The Nomination and Governance
Committee works on behalf of the
full Board to review the composition
of the Board and its Committees and
carry out succession planning for
all Board positions.”
Nomination and
Governance Committee
members
• Michel Demaré (Chair)
• Euan Ashley
• Philip Broadley
• Sheri McCoy
• Nazneen Rahman
The full role of the Nomination
and Governance Committee
is set out in its terms of
reference, available at
www.astrazeneca.com.
For more information on each
Director’s individual experience
in these areas, see the Board
biographies on pages 68 and 69.
Non-Executive Directors’ experience, as at 31 December 2025
Skills and experience
Total
Business
Finance
Experience in accounting, corporate finance, internal controls and associated risk management.
7
Management
Experience working in senior management roles of major companies, business transformation
and strategy.
8
Sales and marketing
Understanding and experience in sales and marketing.
3
Technology, digital and AI
Knowledge and experience in technology, biotechnology, AI and digital health tools.
5
Sustainability
Experience in managing the issues and opportunities associated with business sustainability,
including corporate social performance, stakeholder engagement, and science-based solutions.
5
Geographic
The regions where the Non-Executive Directors are primarily based.
UK
3
US
4
Europe
4
Asia
1
Industry-specific
Science
Practical knowledge and experience in scientific research, development and innovation.
7
Pre-AstraZeneca pharma
Professional experience in the pharmaceutical industry prior to joining AstraZeneca.
6
Medical doctor/physician
Clinically trained medical doctor and/or physician.
3
Committee’s role
The Committee works on behalf of the full
Board to review the composition of the Board
and its Committees and carry out succession
planning for all Board positions, including
taking the lead in the search for and
recruitment of new Directors. The Committee
ensures the Board has an appropriate
balance of expertise, experience and diversity.
A matrix that records the skills and experience
of current Board members is one of the main
tools used by the Committee to do this.
The matrix is shown in the table above.
Decisions relating to the appointment
of Directors are made by the entire Board
based on the Committee’s recommendations.
These take into account the merits of the
candidates and the relevance of their
background and experience, measured
against objective criteria, with care taken
to ensure appointees have enough time
to devote to the Board’s business.
Board and Board Committee
composition and succession planning
The Committee considers both planned
and unplanned (unanticipated) succession
scenarios. The Committee continued
to spend considerable time in 2025 on
succession planning for Non-Executive
Directors, as a number of Board members
approach nine-year terms. Having appointed
Rene Haas and Birgit Conix as Non-Executive
Directors with effect from 1 January 2025
and 1 February 2025 respectively, as
reported in the 2024 Annual Report, the
Committee successfully concluded the
appointment of Karen Knudsen as Non-
Executive Director. Karen’s appointment took
effect following shareholder approval at the
AGM in April 2025, and Karen became
a member of the Science Committee and the
Sustainability Committee on appointment.
The search process was led by the Committee
and involved Karen meeting with multiple
Directors. As a globally-recognised cancer
scientist with broad executive experience
in oncology, Karen brings to the Board
significant knowledge and experience
of oncology, the US healthcare industry
and the medical academic environment.
At the AGM in April 2025, Andreas Rummelt
and Deborah DiSanzo retired from the Board.
On behalf of the Board, I would like to thank
them for their service to AstraZeneca and
valuable contributions to the Board’s work.
On behalf of the Nomination and
Governance Committee (the Committee),
I am pleased to present the Committee’s
report on its activities during 2025.
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The information presented in the tables
was collected on a self-reporting basis.
The Board, SET and Company Secretary
were provided with the prescribed table,
and asked to complete it based on how
they identify. As at 31 December 2025, the
Board is pleased that the Company met the
updated diversity policy targets as specified
in the FCA’s April 2022 Policy Statement on
‘Diversity and inclusion on company boards
and executive management’:
•
50% of the Board (and 50% of Non-
Executive Directors) were women, above
the target of at least 40%.
•
The Company met the policy target that
at least one of the Chair of the Board,
Chief Executive Officer, Senior
independent Non-Executive Director
or Chief Financial Officer be a woman.
•
29% of the Board identified as from an
ethnic minority, above the target of at
least one Board member being from a
non-white ethnic minority background.
Ongoing training and development
Following their appointments during 2025,
Rene, Birgit and Karen were offered a
tailored induction programme to provide an
understanding of the Group, reflecting their
expertise and any Committee memberships.
In addition to arranging comprehensive
induction programmes when new Non-
Executive Directors are appointed to the
Board, the Committee recognises the
importance of continuing development and
training opportunities for all Directors. We
are committed to developing a culture of
lifelong learning throughout our organisation.
Specific sessions with internal and external
experts are periodically arranged for the full
Board, which for example have included
sessions on geopolitical risk, the wider
pharmaceutical landscape and investor
perspectives on the Company and the
pharmaceutical sector.
At least annually, I discuss with each Director
their contribution to the work of the Board
and personal development needs. Directors’
training needs are met by: a combination
of internal and external presentations
and updates, as part of Board and Board
Committee meetings; topic-specific
training sessions, where required; and the
opportunity for Directors to attend external
courses at the Company’s expense.
Directors are also encouraged to visit Group
sites, physically or virtually, to deepen their
understanding of operations and engage
with employees and stakeholders.
Corporate governance
The Committee advises the Board
periodically on significant developments
in corporate governance and the Company’s
compliance with the UK Corporate Governance
Code (the Code). Further information on
our corporate governance arrangements,
including the Company’s statement of
compliance with the Code during the year,
is set out from page 71.
Michel Demaré
Chair of the Nomination and
Governance Committee
The Committee continued routine succession
planning work for the role of CEO, which, as
in previous years, included desktop research
relating to potential external candidates and
continued monitoring of the development of
potential internal candidates. The Committee
also reviewed succession planning for the
Senior Executive Team roles.
Board and Technology, Coulter Partners,
Heidrick & Struggles and Korn Ferry assisted
the Committee with its succession planning
and non-executive search work this year.
Board and Technology, Coulter Partners and
Heidrick & Struggles undertake executive
search assignments for the Company, and
Korn Ferry undertakes executive search
assignments and other recruitment-related
activities for the Company. The four firms
used for succession planning work during
the year have no other connection with
AstraZeneca or its individual Directors.
Inclusion and diversity
The Board views all aspects of diversity
among Board members as important
considerations when reviewing its
composition. The Board aims to maintain
a balance in terms of the range of experience
and skills of individual Board members,
which includes relevant international
business, pharmaceutical industry,
sustainability, and financial experience,
and appropriate scientific and regulatory
knowledge. The biographies of current
Directors are set out on pages 68 and 69.
The Board’s Inclusion and Diversity Policy
(the Policy), which is applicable to the Board
and its Committees, reinforces the Board’s
ongoing commitment to all aspects of
diversity and to fostering an inclusive
environment in which each Director feels
valued and respected. Although the Board
appoints candidates using objective criteria,
primarily based on merit and relevant
experience, it recognises that an effective
Board requires diversity. To help recruit
Directors from a broad, qualified group
of candidates, the Policy requires the use
of at least one professional search firm that
has signed up to the ‘Voluntary Code of
Conduct for Executive Search Firms’, which
the Company has complied with in 2025.
The Board’s approach to inclusion and
diversity continues to yield successful
results, as shown in the following tables.
The Board’s Inclusion and
Diversity Policy can be read
in full on our website,
www.astrazeneca.com.
Information about our approach
to diversity in the organisation
below Board level can be found
in People, on page 39 of the
Business Review.
Table 1. Reporting table on sex/gender representation as at 31 December 2025
Number
of Board
members
Percentage
of the Board
Number of
senior positions
on the Board
1
Number in
executive
management
2
Percentage
of executive
management
Men
7
50%
3
6
55%
Women
7
50%
1
5
45%
Non-binary
–
–
–
–
–
Not specified/prefer not to say
–
–
–
–
–
Table 2. Reporting table on ethnicity representation as at 31 December 2025
Number
of Board
members
Percentage
of the Board
Number of
senior positions
on the Board
1
Number in
executive
management
2
Percentage
of executive
management
White British or other White
(including minority-white groups)
10
71%
3
9
82%
Mixed/multiple ethnic groups
1
7%
–
–
–
Asian/Asian British
3
22%
1
2
18%
Black/African/Caribbean/
Black British
–
–
–
–
–
Other ethnic group, including Arab
–
–
–
–
–
Not specified/prefer not to say
–
–
–
–
–
1
Chair, CEO, CFO and Senior independent Non-Executive Director.
2
Executive management includes the SET and Company Secretary.
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continued
Activities during the year
The Committee met seven times during 2025,
both virtually and face-to-face. This included
a two-day meeting at the AstraZeneca site
in Gaithersburg, US where the Committee
members engaged with R&D employees
over several different sessions. Committee
members attended a poster session with
scientists from AstraZeneca and Alexion,
and held one-to-one meetings with global
R&D leaders. The Committee also hosted
a lunch with AstraZeneca scientists,
including rising stars nominated by various
functions, visited the new cell therapy
manufacturing site in Rockville, US and
completed a lab tour of the AstraZeneca
cell therapy research facilities at One
MedImmune Way in Gaithersburg, US.
Our key areas of focus during the year
included:
•
Company strategy and strategic
priorities for R&D:
including key
prioritised science platforms across
R&D (Oncology, BioPharmaceuticals
and Rare Disease) and areas of focus
for long-term success.
•
AstraZeneca R&D strategic science
capabilities:
including the cell therapy
strategy across therapy areas, and
in-depth reviews of precision therapies
(cellular therapies and viral and non-viral
gene therapies) and targeted therapies
(antibody drug conjugates and
radioconjugates).
•
Business development strategy:
engagements with business development
teams across all therapy areas to review
strategic priorities, opportunities under
evaluation and key insights.
•
Acquisitions and in-licensing
agreements:
review for the Board
the scientific case for acquisition,
collaboration and licensing
opportunities, including:
–
Acquisition of EsoBiotec, a
biotechnology company pioneering
in vivo cell therapies that has
demonstrated promising early
clinical activity.
–
A collaboration and licensing agreement
with Harbour BioMed to discover
multi-specific antibodies.
–
A collaboration and licensing agreement
with Syneron Bio to develop macro-
cyclic peptides.
•
Data science and AI:
sessions focused
on multimodal foundation models for clinical
development and enabling data access
for AI as part of a comprehensive
multi-meeting process focused on all
potential impacts of AI on AstraZeneca R&D.
•
Corporate scorecard outturn and goal
setting:
providing insight and feedback
to the Remuneration Committee in support
of 2025 achievements and 2026 goal
setting relating to R&D.
Euan Ashley
Chair of the Science Committee
Chair’s introduction
The Science Committee’s (the Committee)
core role is to provide assurance to the
Board regarding the quality, competitiveness
and integrity of the Group’s R&D activities.
We achieve this through dialogue with
AstraZeneca’s R&D leaders and other
scientist employees, as well as visits
to our R&D sites throughout the world.
Our role is to review and assess:
•
The approaches we adopt in respect
of our chosen therapy areas.
•
The scientific technology and R&D
capabilities we deploy.
•
The scientific strategy for maintaining
our pipeline and competitiveness.
•
The decision-making processes for R&D
projects and programmes.
•
The quality of our scientists, their career
opportunities and talent development.
•
Benchmarking against industry and
scientific best practice, where appropriate.
We also periodically review important
bioethical issues and assist in the
formulation of appropriate policies in relation
to such issues, agreeing these on behalf
of the Board. The Committee also considers
future trends in medical science and
technology, and reviews, on behalf of the
Board, the R&D aspects of specific business
development or acquisition proposals,
advising the Board on its conclusions.
Science Committee
members
• Euan Ashley (Chair)
• Karen Knudsen
1
•
Diana Layfield
• Tony Mok
• Nazneen Rahman
• Marcus Wallenberg
• EVP, Oncology
Haematology R&D
2
• EVP, BioPharmaceuticals
R&D
2
• CEO, Alexion
2
1
Appointed as a member of the
Committee on 11 April 2025.
2
Co-opted member of the Committee.
The full role of the Science
Committee is set out in its
terms of reference, available
at www.astrazeneca.com.
“The Science Committee’s core
role is to provide assurance to
the Board regarding the quality,
competitiveness and integrity
of the Group’s R&D activities.”
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In 2025, the Committee met formally twice
and additionally held a dedicated strategy
day with key employees leading our global
sustainability agenda. These engagements
provided valuable insights into the
implementation of our strategy across
the business and enabled deeper dialogue
on emerging priorities. Direct input from
colleagues working on the ground helped
the Committee better understand both the
opportunities and challenges in translating
ambition into action.
The Committee’s discussions this year
focused on several strategic areas:
•
Scope 3 strategy development:
including the transition to next-generation
propellants, product decarbonisation,
supplier engagement, compensation
mechanisms, and target-setting.
•
Health equity:
exploring how our strategy
supports access, affordability, and
outcomes across diverse populations.
•
A strategic review of sustainability
initiatives:
assessing alignment with
our broader corporate objectives and
impact potential.
•
Ambition Zero Carbon:
evaluating our
strategy and targets against the Science
Based Targets initiative (SBTi).
•
Communication of our sustainability
strategy:
ensuring clarity and consistency
in how we share our progress and
priorities with stakeholders.
•
Supporting the Remuneration
Committee
in its consideration of how
the delivery of our sustainability targets
is incentivised.
This year, we were pleased to welcome
Karen Knudsen to the Committee following
her appointment to the Board on 11 April 2025.
Karen brings significant knowledge of the
US healthcare sector and the medical
academic landscape, and her insights have
already proven valuable. I am grateful for
her contributions to the Committee’s
discussions and activities.
As Chair, I remain proud of the Committee’s
contribution to AstraZeneca’s sustainability
journey. We are committed to maintaining
robust governance, fostering transparency,
and supporting the Company in delivering
meaningful impact for patients, communities,
and the planet.
Nazneen Rahman
Chair of the Sustainability Committee
Chair’s introduction
The Sustainability Committee (the
Committee) continued its important work
during 2025 to oversee the execution
of the Company’s sustainability strategy.
In addition to this important function, the
Committee’s other roles are:
•
Collaborating with the Audit Committee
to review the Company’s regulatory
disclosures relating to sustainability
and providing information and advice
to support the Board and Audit
Committee as required.
•
Overseeing communication of
our sustainability activities with
our stakeholders.
•
Monitoring developments and best
practice, and providing input to the
Board and other Board Committees
on sustainability matters as required.
•
Advising the Remuneration Committee on
the Company’s sustainability metrics and
targets, and performance against these.
Activities during the year
Committee meetings and informal
interactions with employees provide
valuable opportunities for members
to engage directly with those responsible
for executing AstraZeneca’s sustainability
strategy. These exchanges helped the
Committee build a deeper understanding
of the initiatives underway, their progress,
and the individuals driving them – insights
we share with the wider Board.
Sustainability Committee
members
• Nazneen Rahman (Chair)
• Karen Knudsen
1
• Sheri McCoy
• Marcus Wallenberg
Standing attendees at Committee meetings
during 2025 included the: EVP, Global
Operations, IT and the Chief Sustainability
Officer; and VP, Global Sustainability
and SHE.
1
Appointed as a member of the
Committee on 11 April 2025.
The full role of the Sustainability
Committee is set out in its terms
of reference, available at
www.astrazeneca.com.
For more information about
sustainability at AstraZeneca,
visit www.astrazeneca.com/
sustainability.
“The Sustainability Committee
continued its important work
in 2025 to oversee the execution
of the Company’s sustainability
strategy.”
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Audit Committee members
• Philip Broadley (Chair)
• Sheri McCoy
• Anna Manz
• Birgit Conix
1
1
Appointed as a member of the
Committee on 1 February 2025.
and also inform the Committee’s in-depth
review sessions, which have included:
•
Our business development processes.
•
Sustainability-related regulations and the
measures in place to ensure compliance
with regulatory standards, proportionality
and balanced reporting.
•
The tariffs required by the US Government
and the potential impact on the Group.
•
The annual review of the Group’s risk
management framework and approach.
•
A review of major capital projects.
•
The planned upgrade of the Group’s
Enterprise Resource Planning IT systems
(S4HANA Project Axial).
•
Our Information Technology and
Information Security (IT/IS) function,
including management and mitigation
of cybersecurity threats.
•
Our Operations function, as we continue
to evolve our supply chain capabilities.
These sessions allowed the Committee
to explore specific areas of risk in a ‘real
world’ business context and in direct
dialogue with the business that have
responsibility for managing these risks.
Last year we reported that, following a
rigorous tender process, KPMG would be
appointed as the Group’s external auditor for
the financial year ending 31 December 2026.
During the year, the Committee reviewed plans
and activities undertaken by management
related to the audit transition and assurance
that independence would be in place by
1 May 2025. Further details are provided
on page 87. On behalf of the Committee,
I would like to thank PwC for their work
as the Group’s external auditor since 2017.
The Committee also spent considerable
time continuing to keep up to date on
external developments in the reporting
and regulatory environment, including
changes to sustainability-related reporting
requirements in the EU encompassing the
Corporate Sustainability Reporting Directive
(CSRD) and EU Taxonomy. The Committee
reviewed preparations for the new UK Failure
to Prevent Fraud offence and upcoming
changes to the UK Corporate Governance
Code (the Code) in readiness to meet the
additional disclosures over the effectiveness
of material controls as required by Provision 29.
We continued our approach of a combination
of in-person and virtual Committee meetings
and interactions with colleagues from across
the organisation, including in-person visits
by Committee members to AstraZeneca’s
sites in Germany and Poland, details of which
are provided on pages 85 and 86. I also
attended the Group Internal Audit (GIA) annual
conference at our Alexion manufacturing site
in Dublin, which allowed me to engage with
the GIA team and gain strategic insight into
their work. These interactions, along with
the in-depth sessions I refer to above, have
allowed Committee members to maximise
our engagement with colleagues across the
business, deepen our understanding of the
priorities and challenges facing many different
markets and business areas, and hear a wide
range of employees’ views directly.
I was also pleased to welcome Birgit Conix
as a member of the Committee in February
2025 and she has already brought a valuable
contribution to the Committee’s discussions
during the year.
We hope you find the Committee’s
report useful and informative and,
as ever, I welcome any feedback.
Philip Broadley
Chair of the Audit Committee
Chair’s introduction
On behalf of the Audit Committee (the
Committee), I am pleased to present the
Committee’s report on its activities and the
significant matters it considered during 2025.
The Committee’s principal responsibilities
include monitoring the integrity of financial
and sustainability reporting, including formal
announcements relating to financial
performance, reviewing the effectiveness
of internal controls, risk management,
compliance systems and processes,
overseeing the external and internal audit
processes, and oversight of external
sustainability reporting assurance.
The Committee believes that it has carried
out its responsibilities effectively throughout
the year, and to a high standard, providing
independent oversight. It has had good
support from AstraZeneca personnel
and PwC, the Company’s auditors.
The Committee continues to apply appropriate
challenge to the Company’s management, for
example, the change in revenue presentation
to include a new metric, Product Revenue,
and the change in metric from Product Sales
Gross Margin to Gross Margin as a percentage
of Total Revenue, were subject to robust
discussions and scrutiny from the Committee
before it was satisfied with management’s
approach. The Committee also discussed
the implications of US tariffs on accessibility
of medicines, including any accounting
implications, and requested a review of the
nature and accounting for sales incentives.
In addition, the Committee challenged
management on the extent and proportionality
of disclosures relating to sustainability reporting
in light of changing regulatory requirements.
The Committee’s agenda continues to be
driven by the Company’s key active risks
and key strategic programmes which are
considered at every Committee meeting,
“The Committee’s principal
responsibilities include monitoring
the integrity of financial and
sustainability reporting, including
formal announcements relating
to financial performance, reviewing
the effectiveness of internal controls,
risk management, compliance
systems and processes, overseeing
the external and internal audit
processes, and oversight of external
sustainability reporting assurance.”
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meetings during the year when the
Committee reviewed cybersecurity risks.
KPMG attended Committee meetings from
July 2025 as part of the audit transition post
independence, as well as attending some
sessions in their role as the sustainability
assurance provider. The Committee, and
separately the Committee Chair, also meet
privately and on an individual basis with
attendees which helps ensure the effective
flow of material information between the
Committee and management. The CEO
and other members of the SET attend
when required by the Committee.
Activities during the year
Financial reporting
Effective internal controls, appropriate
accounting practices and policies, and
the exercise of experienced judgement
by the Committee and the Board underpin
AstraZeneca’s financial reporting integrity.
The Committee’s activities in this area
in 2025 included:
•
Reviewing key elements of the Financial
Statements and the estimates and
judgements contained in the Group’s
financial disclosures, as well as considering
the appropriateness of management’s and
the external auditor’s analysis and
conclusions on judgemental accounting
matters. The significant financial reporting
issues considered are described in detail
in the table on pages 88 and 89. Further
information on the significant accounting
matters considered is included within our
Group Accounting Policies from page 129.
•
Considering the completeness and
accuracy of the Group’s reported financial
performance against its internal and
external key performance indicators
on a quarterly and annual basis.
•
Reviewing the preparation of the Directors’
Viability Statement and considering the
adequacy of the analysis supporting the
assurance provided by that statement,
as well as the going concern assessment
and adoption of the going concern basis
in preparing this Annual Report and the
Financial Statements.
•
Reviewing quarterly updates from both
management and PwC on the programme
of activities relating to control over
financial reporting and the effectiveness
of testing that has been performed
across the internal control environment.
•
Considering the external auditor’s
reports on its audit of the Group Financial
Statements, as well as reports from
management, Global Compliance and
the external auditor on the effectiveness
of our system of internal controls and,
in particular, our internal control over
financial reporting. This included
consideration of compliance with
applicable provisions of the Sarbanes-
Oxley Act, in particular, the status of
compliance with the programme of internal
controls over financial reporting implemented
pursuant to section 404 of that Act.
•
Discussing financial reporting
considerations in relation to significant
transactions that occurred in the year
including the acquisition of EsoBiotec
and FibroGen China, the amortisation
and impairment of intangible assets,
restructuring programmes, the addition
of the Product Revenue subtotal and
the presentation of Alliance Revenue,
Collaboration Revenue and Gross
Margin metrics.
•
Reviewing, with appropriate challenge,
the outcomes from the Group’s budgeting
and forecasting process for the near term,
including capital expenditure projections.
The Committee was pleased to receive
a formal correspondence from the Financial
Reporting Council (FRC), which informed us
that the FRC had conducted both a limited
scope review of our supplier finance
arrangements disclosures in the 2024
Annual Report, as well as a separate review
of our reporting against certain principles
and provisions of the Code, and concluded
with no questions or queries that required
our attention. The Committee also noted that
the Group received formal communication
from the Council for Swedish Financial
Reporting Supervision, which had reviewed
our 2024 Annual Report and accordingly
submitted questions. Following receipt
of our responses to these questions, the
Council had no further questions and
satisfactorily closed the review.
Risk identification and management
The Committee received quarterly updates
on the Company’s risks, which informed the
Committee’s agenda and targeted deep-dive
reviews. These activities were complemented
by the Committee’s review of the risk
management framework (including principal
and emerging risks), which enabled the
Committee to review and challenge the
effectiveness of the Company’s risk
management and internal control systems.
The Committee also reviewed the Viability
Statement and considered, in detail, the
validity of each scenario and also assessed
whether proposed mitigations were viable.
Cybersecurity risk, digital security and
information governance
The Committee noted that the approach
to identifying, assessing and managing
cybersecurity risk is integrated within our
Group-wide approach to risk management,
with failure in information technology and
cybersecurity identified as a Principal Risk.
The Committee conducted regular reviews
of cybersecurity risks, the effectiveness
of existing mitigations and the need for
additional mitigations. These reviews are
supported by senior management, GIA
and other assurance providers.
Committee overview
Committee composition
In December 2025, the Board determined
the Committee met the UK and US
composition requirements by virtue of Philip
Broadley, Anna Manz and Birgit Conix having
recent and relevant financial experience for
the purpose of the Code, having competence
in accounting and/or auditing for the purpose
of the Disclosure Guidance and Transparency
Rules, and being financial experts for the
purposes of the Sarbanes-Oxley Act. All
Committee members are independent for
the purposes of the Code, and all meet the
SEC independence criteria. The Committee,
as a whole, have competence relevant to
the sector in which the Company operates,
by virtue of their experience of working
in science-driven, healthcare and/or
pharmaceutical industries, or as a result
of their tenure with AstraZeneca. The
Committee members’ qualifications, skills
and experience are detailed in their biographies
on pages 68 and 69 and meeting attendance
is shown on page 67.
Role of the Committee
The Committee’s responsibilities were
updated in the year to include the review
of, and reporting to the Board on, matters
related to sustainability reporting and the
relationship with the sustainability assurance
provider. The Committee reports to the
Board on the principal matters it considers
and any significant concerns it has or that
have been reported to it.
Attendance at Committee meetings
Routine attendees at Committee meetings
include the CFO; the Chief Human
Resources Officer, Chief Compliance Officer
and General Counsel; the VP, Ethics &
Transparency and Deputy Chief Compliance
Officer; the Deputy General Counsel; the VP,
Group Internal Audit; the SVP, Finance,
Group Controller and Head of Global Finance
Services; and the Company’s external
auditor. Diana Layfield attended Committee
The full role of the Audit
Committee is set out in its
terms of reference, available
at www.astrazeneca.com.
For more information on:
The basis of preparation of the
Financial Statements on a going
concern basis, see page 224
and in the Financial Statements,
see page 129.
The significant financial
reporting issues considered,
see the table set out on pages
88 and 89.
The Viability Statement, see
page 46 and the Principal Risks
faced by the Group, see Risk
Overview from page 47.
Digital technologies, see page 36.
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continued
AstraZeneca operates within the law
in all countries where we operate.
•
The monitoring, review, education and
improvements made to support assurance
that the risk of modern slavery and human
trafficking is eliminated, to the fullest extent
possible, from AstraZeneca’s supply chain.
•
Reports on external developments and
enforcement trends and related risk
mitigation measures across a variety
of risks as well as specific updates from
key markets and regions.
Internal Audit
The Committee reviewed GIA’s activities,
including:
•
Reviewing quarterly reports of work
carried out by GIA, including the status
of follow-up actions with management.
In 2025, GIA provided assurance over
compliance with significant policies, plans,
procedures, laws and regulations, as well
as risk-based audits across a broad range
of key business activities and continued
its thematic reporting to the business.
The 2025 audit plan was aligned to our
key active risks and wider risk taxonomy.
Separate meetings are arranged to
discuss follow-up actions in more depth
with specific teams, when required
by the Committee.
•
Carrying out the annual effectiveness
review of GIA in late 2025 by considering
its performance against the internal audit
plan and key activities.
•
Approving the 2026 internal audit plan,
which is aligned to our key active risks
and wider risk taxonomy.
•
Considering the geographic presence,
reach and capabilities of GIA and the
appropriateness of the Group’s resource
allocation for this vital assurance function.
The Committee supports GIA’s efforts
to deploy its resources in line with the
continuously evolving shape and size of
the overall organisation and was satisfied
with the quality, experience and expertise
of the GIA function.
An independent External Quality Assessment
of GIA is performed every five years and was
last performed in 2021.
External audit
The Company’s external auditor, PwC, provided
quarterly reports to the Committee over key
audit and accounting matters, and business
processes, internal controls and IT systems.
The Committee oversaw the conduct,
performance and quality of the external audit
through its review and challenge of the
coverage of the external auditor’s audit plan
and monitoring against it. The Committee
maintained regular contact with PwC
through formal and informal reporting and
discussion throughout the year, with
a continued focus on maintaining audit
efficiency and quality. The Committee also
sought management’s feedback on the
conduct of the audit and considered the
level of and extent to which the auditors
challenged management’s assumptions.
A number of interactions took place between
Committee members and PwC during the
year, outside of formal Committee meetings,
to enhance the Committee’s understanding
of the audit process, including the Committee
Chair attending and presenting at PwC’s
Account Planning Workshop in March 2025.
The Committee reviewed audit and non-
audit fees of the external auditor during
the year, including the objectivity and
independence of the external auditor
through the application of the Audit and
Audit-Related Services Approval Policy,
as described further on pages 86 and 87.
Engagement with employees and other
stakeholders
The Committee regularly interacts with
members of management below the SET
and seeks wider engagement with the Group’s
employees and other stakeholders, during
deep dive sessions at formal Committee
meetings and as separate engagements.
Committee members undertook a mixture
of in-person and virtual interactions with
a wide range of teams from across the
organisation. This included teams from
IT/IS, Operations, Finance, International,
Sustainability, and Business Development.
Committee members visited AstraZeneca
sites in Germany and Poland where they
engaged with employees from across these
markets, including through all-employee
townhalls and Q&A sessions, and breakfasts
and lunches with small groups of employees.
They also received presentations which
included introductions to AstraZeneca
in these markets and business outlook,
examples of AI use and innovation, and
insights into different therapy areas and
business areas. Philip Broadley also attended
the GIA annual conference at the Alexion site
in Ireland which provided the opportunity
to engage with the wider GIA team.
The breadth of these interactions is crucial
in enhancing the Committee’s understanding
of the business and provides valuable
insights into the key issues and challenges
relating to, and current and emerging risks
associated with, our activities in these areas.
Sustainability reporting
The Committee is responsible for reviewing
the approach, key elements and principal
disclosures related to sustainability reporting
in the Company’s annual reports, Form 20-F
filings and quarterly results announcements.
The Committee’s activities in this area
included:
•
Review of the Group’s double materiality
assessment, Task Force on Climate-
related Financial Disclosures (TCFD)
disclosures and the EU Taxonomy
disclosures in this Annual Report. These
statements, as well as the Sustainability
Data Annex, are also reviewed by the
Sustainability Committee to support
the Committee’s review.
•
Reviewing quarterly updates by
management on proposed and updated
regulations by the EU, Sweden, the UK
and the International Sustainability
Standards Board on sustainability reporting
and the Group’s approach to ensure
compliant and proportional disclosures
in the 2025 Annual Report.
•
Considering the sustainability assurance
provider’s quarterly reports covering
assurance work carried out in the period,
including any findings and recommendations.
The Committee oversaw the conduct and
performance of the sustainability assurance
provider, KPMG, through its review and
challenge of the scoping and assurance
plan, and monitoring performance against
the plan. The Committee also reviewed the
effectiveness of KPMG as the sustainability
assurance provider and concluded that the
sustainability assurance process was
effective for the year ended 31 December 2025.
Legal and Compliance
The Committee’s activities in this area
included reviewing:
•
Quarterly reports from the Legal function
to monitor the status of significant litigation
matters and governmental investigations.
•
Quarterly reports from Global Compliance
to provide oversight of key compliance
incidents and the dispersion of incidents
and related disciplinary actions across
markets, business units and management
hierarchy. The reports included insights
from incidents, assurance activities and
related corrective actions taken so that
the Committee could assess the
effectiveness of controls and monitor
and ensure timely remediation.
•
Reports at each Committee meeting
allowing the Committee to continue
its close monitoring of the ongoing
investigations by Chinese authorities
previously reported and described
further in Note 30 on page 188.
•
Reporting on compliance with
AstraZeneca’s Code of Ethics to ensure
high ethical standards and that
For more information on
our Code of Ethics and on
Anti-bribery and anti-
corruption, see pages 34 and 35.
AstraZeneca’s Modern
Slavery Act Statement is
available on our website,
www.astrazeneca.com.
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Fair, balanced and
understandable assessment
At the Board’s instruction, the Committee
assessed this Annual Report to ensure that,
taken as a whole, it is fair, balanced and
understandable, and provides necessary
information for shareholders to assess the
Company’s position and performance,
business model and strategy. The Committee
reviewed the governance structure and
assurance mechanisms for the preparation
of this Annual Report and the contributor
and SET member verification process.
An early draft of this Annual Report was
reviewed to assess proposed content and
structural changes from the prior year, and
to undertake a review of the reporting for the
year, following which Committee members
provided their individual and collective
feedback. In line with its terms of reference,
the Committee (alongside the Board) took
an active part in reviewing the Company’s
quarterly results announcements and
considered the Company’s other public
disclosures which are managed through
its Disclosure Committee (the Committee
was updated on matters considered by the
Disclosure Committee regularly throughout
the year). To aid its review further, the
Committee also received a summary of
the final Annual Report content, including
AstraZeneca’s successes and setbacks
during the year and their placement within
the document.
These processes allowed the Committee
to provide assurance to the Board to assist
it in making the required statement under
the Code, as set out from page 71.
Internal controls
Information on the Company’s internal
controls is included in the Audit, risk and
internal control section in the Corporate
Governance Report on page 73. During the
period covered by this Annual Report there
was no change in our internal control over
financial reporting that occurred that has
materially affected, or is reasonably likely
to materially affect, our internal control
over financial reporting.
At the January 2026 Committee meeting,
the CFO presented the conclusions of the
evaluation by the CEO and CFO of the
effectiveness of our disclosure controls
and procedures that is required by Item 15(a)
of Form 20-F as at 31 December 2025.
Based on their evaluation, the CEO and the
CFO concluded that, as at that date, the
Company maintained an effective system
of disclosure controls and procedures.
External auditor
PwC is the Company’s external auditor.
In April 2025, PwC was reappointed as the
Company’s auditor for the financial year
ended 31 December 2025, its ninth
consecutive year as auditor, having first
been appointed for the financial year ended
31 December 2017, following a competitive
tender carried out in 2015. Sarah Quinn
continued as the lead audit partner at PwC
for 2025 following her appointment in
January 2022.
In February 2025, the Committee
recommended, and the Board approved,
the appointment of KPMG as the
Company’s auditor for the financial year
ending 31 December 2026. Accordingly,
a resolution to appoint KPMG as auditor
will be put to shareholders at the
Company’s AGM in April 2026.
Audit, audit-related and other assurance
services provided by the external auditor
The Committee maintains the Audit,
Audit-Related and Sustainability Assurance
Services Pre-Approval Policy (the Policy)
for the pre-approval of all audit, audit-related
and other assurance to ensure that the
independence of the external auditor is
not impaired.
Certain audit and audit-related services can
be performed by the external auditor, subject
to annual fee limits agreed with the Committee
in advance. Pre-approved services below
a trivial threshold (within the overall annual
fee limit) require case-by-case approval
by the SVP Finance, Group Controller and
Head of Global Finance Services.
Pre-approved audit services include the
annual financial statement audit (including
quarterly and half-year reviews), Sarbanes-
Oxley Act section 404 attestation, statutory
audits for subsidiary entities, and other
procedures which form an opinion on the
Group’s Consolidated Financial Statements.
The pre-approved audit-related services,
which the Committee believes reasonably
related to the performance of the audit
or review of the Company’s Financial
Statements, included certain services
required by law or regulation, such as
financial statement audits of employee
benefit plans and capital market transactions.
The Policy prohibits tax services, but allows
for audit-related services like assurance
on tax regulatory certificates.
The CFO (supported by the SVP Finance,
Group Controller and Head of Global Finance
Services), monitors all services provided
by the external auditor. Authority for
approving work exceeding the pre-agreed
annual fee limits or the trivial threshold is
delegated to the Committee Chair. Regular
reports are provided to the Committee on the
operation of the pre-approval procedures.
The Committee welcomes the opportunity
to engage directly with employees in these
meetings which provide an opportunity to
gauge employee sentiment and hear their
views directly. The Committee also uses
these interactions to communicate the
importance it attaches to compliance and
our ‘speak up’ culture.
Reporting and regulatory environment
The Committee has kept abreast of
developments in the reporting and
regulatory environment. This has included
governance and audit reforms in the UK,
changes to the UK Listing Rules, and
developments in sustainability-related
reporting requirements in a number of
jurisdictions. The Committee focused
considerable effort keeping abreast of
proposed and enacted legislation over
sustainability reporting, in particular the EU
Omnibus 1 proposals simplifying the CSRD
reporting requirements, among other
changes. The Committee also reviewed
the proposals to simplify EU Taxonomy
disclosures requirements, as well as
developments in the UK’s Sustainability
Reporting Standards and the IFRS
Sustainability Reporting Standards.
Ensuring the quality of external financial and
sustainability reporting to shareholders and
other stakeholders is paramount to the
Committee. This includes its assessment
of the annual reports to ensure that, taken
as a whole, they are fair, balanced and
understandable (for which the process
is described on this page). External validation
of the Annual Report is an important
indicator of the quality of our reporting.
Committee performance
The Committee conducted the annual
evaluation of its own performance, referring
to the Committee-specific results of the
internal Board effectiveness review. The
results were reported to, and discussed with,
the Committee and the Board. The overall
results of the review were positive, with
the Committee described as being very
effective. The review noted that the change
in the Company’s external auditor would
continue to be a key focus area for the
Committee over the coming year.
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continued
Further information about the
audit and non-audit fees for
2025 is disclosed in Note 31
to the Financial Statements
on page 191.
All services other than the pre-approved
audit and audit-related services, require
approval by the Committee on a case-
by-case basis. In 2025, PwC provided
audit-related services including interim
reviews of the results of the Group for
the period ended 30 June 2025 and other
assurance services.
The increase to the statutory audit fee for
2025 is largely driven by scope changes
and inflationary increases.
Fees for audit-related and other assurance
services amounted to 6% of the fees payable
to PwC for audit services in 2025 (2024:
10%). The Committee is mindful of the 70%
non-audit services fee cap under EU
regulation, together with the overall proportion
of fees for audit and audit-related services
in determining whether to pre-approve such
services. Fees for audit-related and other
assurance services payable to PwC in 2025
were 6% (2024: 11%) of average audit fees
over 2022 to 2024 (2024: 2021 to 2023).
PwC were better placed than any alternative
provider to provide these services in terms
of their familiarity with the Company’s
business, skills, capability and efficiency
with which they could deliver the relevant
services. All such services were either within
the scope of the pre-approved services set
out in the Policy or were presented to
Committee members for pre-approval and
all such services were permitted by the FRC
Ethical Standard.
$33.8m
$31.8m
2025
2024
Audit, audit-related and other
assurance services
Statutory audit fee
Audit-related and other assurance services
Assessing external audit effectiveness
The Committee evaluated PwC’s
performance and its compliance with
independence criteria under applicable
statutory, regulatory, and ethical standards.
PwC’s effectiveness was assessed
principally against four key factors:
judgement; mindset and culture; skills,
character and knowledge; and quality
control. The assessment also took into
account views of senior management within
Finance and regular Committee attendees.
In evaluating audit quality, the Committee
focused on PwC’s effective use of experts
and technology, and its appropriate
challenge of management’s judgements
especially in relation to areas of significant
financial reporting issues (as described
in the table on pages 88 and 89). Areas
reviewed by the Committee included PwC’s
extensive and detailed review of the
valuations and assumptions related
to defined benefit pension valuations,
assumptions and calculations over Gross
to Net Product Sales, legal settlements in
the year, intangible asset assumptions used
in cash flow modelling, and the recognition
and measurement of uncertain tax liabilities.
The Committee concluded that PwC’s
audit was effective for the year ended
31 December 2025.
External audit transition
Following a tender process in 2024, the
Committee recommended, and the Board
approved, that KPMG be appointed as the
external auditor for the financial year ended
31 December 2026, subject to shareholder
approval at the 2026 AGM.
To ensure a smooth transition from PwC
to KPMG, the Committee has monitored
the activities of the audit transition, which
commenced on 1 May 2025. This included
the review of, and the review of the delivery
of, plans to ensure KPMG exited all services
requiring a one-year ‘cool-in’ period ahead
of 1 January 2026, and exited all prohibited
services to be fully independent ahead
of 1 May 2025. This involved completion
of some KPMG engagements without
renewal, moving existing KPMG engagements
to alternative providers or in-housing other
activities. In addition, the Committee
considered, and received regular updates
on, KPMG’s audit transition plans. KPMG
also attended selected Group meetings with
management and PwC for the financial year
ended 31 December 2025, and is scheduled
to review PwC’s 2025 audit files after
completion of the audit.
The Committee also reviewed and approved
updates to the Policy to require pre-approval
of any services provided by KPMG outside
of services related to their role as the
sustainability assurance provider and
incoming auditor during the transition period.
From 1 May 2025, KPMG is subject to the
same pre-approval process, with the SVP
Finance, Group Controller and Head of
Global Finance Services approving all such
services below a trivial threshold, with any
services above the threshold requiring
Committee Chair approval.
All services approved for KPMG in the period
are reported to the Audit Committee on a
quarterly basis. All such services were either
within the scope of the pre-approved
services set out in the Policy or were
presented to Committee members for
pre-approval and all such services were
permitted by the FRC Ethical Standard.
Fees for sustainability assurance of $2.8m
were payable to KPMG for the year ended
31 December 2025, in addition to fees of
$0.5m for the audit of subsidiaries and $0.1m
for other assurance services.
Regulation
The Committee considers that the Company
has complied with the Competition and
Markets Authority’s Statutory Audit Services
for Large Companies Market Investigation
(Mandatory Use of Competitive Tender
Processes and Audit Committee
Responsibilities) Order 2014 and the FRC’s
Audit Committees and External Audit
Minimum Standard in respect of its financial
year commencing 1 January 2025. The
Committee was also pleased to obtain
notification from the FRC that our reporting
on the audit tendering process in our 2024
Annual Report served as an example of good
practice in accordance with the Code.
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Sustainability Statement
Additional Information
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Audit Committee Report
Significant financial reporting issues considered by the Committee in 2025
Matter considered
Committee’s conclusion and response
Valuation of
intangible assets
See Financial Review
from page 50 and
Note 11 to the
Financial Statements
from page 151.
The Group carries significant intangible assets on its
Consolidated Statement of Financial Position arising from
the acquisition of businesses and intellectual property (IP)
rights to medicines in development and on the market.
Each quarter, the CFO reports on the carrying value of
the Group’s intangible assets as well as the specific assets
identified as at risk of impairment. For at risk assets, the
Committee receives information on the difference between
the carrying value and management’s current estimate
of discounted future cash flows for these products (the
headroom). Products will be identified as ‘at risk’ if the
headroom is small or, for medicines in development,
there is a significant potentially adverse event such as the
publication of clinical trial results, which could significantly
alter management’s forecasts. The reviews also cover the
impact on any related contingent consideration arising from
previous business combinations.
The Committee considered the impairment reviews of the
Group’s intangible assets. Impairments of $8 million arose
in relation to launched products and $210 million in relation
to products in development.
The Committee assured itself of the integrity of the Group’s
accounting policy and valuation models for its assessment
and valuation of its intangible assets, including understanding
the key assumptions and sensitivities within those models.
The Committee also considered the internal and external
estimates for the Group’s cost of capital relative to the broader
industry. The Committee was satisfied that the Group had
appropriately accounted for the identified impairments.
Revenue recognition
See Financial Review
from page 50 and
Note 2 to the Financial
Statements from
page 140.
The US is our largest single market and accounted for
43% of our Total Revenue in 2025. Revenue recognition,
particularly in the US, is affected by rebates, chargebacks,
returns, other revenue accruals and cash discounts.
The Committee pays attention to management’s estimates
of these items, its analysis of any unusual movements and
their impact on revenue recognition.
The Committee receives regular reports from management
and the external auditor on this complex area. The US market
remains highly competitive with diverse marketing and pricing
strategies adopted by the Group and its peers.
The Committee recognised the close monitoring and control
by management of the overall gross-to-net deductions.
The Committee reviewed management’s proposal to update
the presentation of Total Revenue reporting to add an additional
subtotal on the face of the Statement of Comprehensive Income
for ‘Product Revenue’ representing the summation of Product
Sales and Alliance Revenue. The Committee concurred with
management that the additional subtotal of revenue types with
similar characteristics reflects the growing importance of
Alliance Revenue.
Alternative performance
measures (APMs)
See Financial Review
from page 50.
AstraZeneca reports APMs to provide helpful supplementary
information to the IFRS measures to enable a better
understanding of the Group’s financial performance
and position.
In the current period, net restructuring charges of $237 million
were recorded within non-core items once the restructuring
programmes were approved. Management carefully analyses
the presentation of various items to ensure it is fair and
balanced, and follows guidelines issued by the European
Securities and Markets Authority and the SEC, as well as FRC
thematic reviews.
The Committee carefully considered management’s
presentation of the non-core items and concurred with
management’s presentation.
The Committee further considered management’s assessment
and recommendation to present the $223 million legal provision
costs as non-core items and concurred with management that
the presentation was appropriate due to their significance and
was consistent with classification in prior years.
The Committee reviewed proposed disclosures for non-GAAP
items in line with the various regulatory guidance and concurred
with management that the presentation enabled additional
helpful guidance.
Litigation and
contingent liabilities
See Note 30 to the
Financial Statements
from page 181.
AstraZeneca is involved in various legal proceedings
considered typical to its business and the pharmaceutical
industry as a whole, including litigation and investigations
relating to product liability, commercial disputes, infringement
of IP rights, the validity of certain patents, antitrust law, and
sales and marketing practices.
The Committee considers the Group’s approach to disclosure
of, and any liabilities for, relevant matters.
In the current period, net legal provisions of $223 million
were recorded for two legal proceedings within non-core
items once the criteria for recognising a provision were met.
Of the matters the Committee considered in 2025, the more
significant included: the defence of the IP litigation for
Forxiga
and the commercial litigation relating to
Seroquel
XR and
Syntimmune, Inc.
The Committee carefully considered the progress of these legal
proceedings and the timing of recognition of any provision and
concurred with management’s assessment. The Committee was
satisfied that the Group was effectively managing its litigation
risks including seeking appropriate remedies and continuing
to defend its IP rights vigorously.
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Audit Committee Report
Audit Committee Report
continued
Matter considered
Committee’s conclusion and response
Tax charges and liabilities
See Note 5 to the
Financial Statements
from page 144.
AstraZeneca’s
Approach to Taxation,
which was published
in December 2025 and
covers its approach
to governance, risk
management and
compliance, tax
planning, dealing with
tax authorities and the
level of tax risk the
Group is prepared
to accept, can be
found on our website,
www.astrazeneca.com.
The Group has business activities around the world and
incurs a substantial amount and variety of business taxes.
AstraZeneca pays corporate income taxes, customs duties,
excise taxes, stamp duties, employment and many other
business taxes in all jurisdictions where due. In addition,
we collect and pay employee taxes and indirect taxes such
as value-added tax. The taxes the Group pays and collects
represent a significant contribution to the countries and
societies in which we operate. Tax risk can arise from
unclear laws and regulations as well as differences
in their interpretation.
The Committee reviews the Group’s approach to tax, including
governance, risk management and compliance, tax planning,
dealings with tax authorities and the level of tax risk the Group
is prepared to accept.
During 2025, the Committee considered the analysis provided
by management in light of the emerging tariff situation and the
potential impact to the Group and concurred with the
presentation and reporting of these items.
The Committee was satisfied with the Group’s practices
regarding tax liabilities, including, most notably, its response
to developments in the corporate income tax environment.
Segmental reporting
See the Key
Judgement within
Note 7 to the Financial
Statements from
page 147.
Management has reviewed the developments in the year
and determined the Group continues to operate as a single
segment based on key decisions on resource allocation
and performance monitoring being carried out at a Group
level by the SET.
There were no significant changes in the Group’s business
during the year.
The Committee received reports from management regarding
considerations for segmental reporting based on the current
operations and management of the business.
The Committee considered the analysis provided by management
and concurred with management that presenting AstraZeneca’s
performance under one segment was appropriate.
Retirement benefits
See Financial Review
from page 50 and
Note 22 to the
Financial Statements
from page 161.
Accounting for defined benefit pension and other post-
retirement benefits remains an important area of focus.
The present value of these liabilities is sensitive to changes
in long-term interest rates, future inflation and mortality
expectations. The assumptions used to value the liabilities
for the Group’s main post-retirement benefit obligations
are updated every quarter along with asset valuations.
The Group is cognisant of the regulatory environment and
local requirements around funding levels and contributions.
The Group monitors its defined benefit pension risks and
provides input and support to local fiduciaries to ensure
requirements are met.
The Committee monitors the funding level of the Group’s
defined benefit obligations on a quarterly basis, alongside key
developments. The Committee was satisfied that the actuarial
assumptions used to value liabilities were appropriate during
the year.
The Committee was reassured by the Group’s engaged and
balanced approach to managing the risks associated with its
defined benefit obligations including its contribution policy.
The Committee reviewed and concurred with management’s
accounting and presentation of pension balances.
The Committee is aware of the need to adhere to local funding
regulations and is satisfied that the Group is complying
with requirements.
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Corporate Governance
Sustainability Statement
Additional Information
Financial Statements
Strategic Report
Audit Committee Report
Dec
15
Dec
16
Dec
17
Dec
18
Dec
19
Dec
20
Dec
21
Dec
22
Dec
23
Dec
24
Dec
25
0
100
200
300
400
“We are committed to pay for
performance, with stretching
targets that align rewards to
long‑term shareholder value
and our Ambition 2030.”
Remuneration Committee
members
• Sheri McCoy (Chair)
• Philip Broadley
• Michel Demaré
•
Diana Layfield
1
• Nazneen Rahman
1
Appointed as a member of the
Committee on 1 May 2025.
On behalf of the Board, I am pleased
to present AstraZeneca’s Directors’
Remuneration Report for the year ending
31 December 2025.
We continued to advance our science, scale
our global footprint and create long-term
value for patients, society and shareholders.
With Total Revenue of $58.7 billion achieved
for 2025 and the growth momentum seen
across therapy areas and regions, strong
commercial execution has been matched
with remarkable pipeline progress in new
and existing modalities that we believe will
redefine standards of care in the coming
years.
Our strong performance over the last 10 years
is reflected in our total shareholder return
(TSR) which, at 307%, has significantly
outperformed global and European pharma
peer groups (197% and 65%, respectively).
The role of the Remuneration
Committee is set out in its terms
of reference, available at
www.astrazeneca.com.
We aim to be clear and
transparent in how we
link the remuneration
of our executives to the
successful delivery
of our strategy and
shareholder returns.
The Directors’ Remuneration Report contains the following sections:
• Chair’s letter, page 90
• Remuneration at a glance, page 94
• How our performance measures for
2026 support the delivery of our
strategy, page 95
• How the Remuneration Committee
ensures targets are stretching, page 96
• Annual Report on Remuneration,
page 97.
How we have performed in 2025
Total shareholder return (TSR)
2023 to 2025
2
+32%
2
Calculated using a three-month calendar average, from 1 October to 31 December, prior to the start and at the end
of the relevant period.
More information on the TSR
peer groups for PSP awards
can be found on page 103.
Further detail of 2025
commercial and scientific
performance can be found
in the Strategic Report from
page 10.
AstraZeneca
Global pharmaceutical peers average
FTSE 100
European pharmaceutical peers average
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Sustainability Statement
Additional Information
Financial Statements
Strategic Report
Directors’ Remuneration Report
Directors’ Remuneration Report
People and Sustainability
We continue to focus on building a culture
that attracts and retains diverse, world-class
talent, and enables enterprise leadership and
innovation at scale. We are investing in skills
for the future, including AI and data
capabilities, with more than 50,000 employees
participating in our ‘Thriving in the Age of AI’
accreditation programme.
We continued to enhance succession
planning and leadership depth across all
therapy areas in support of our strategic
commitments. Over 2025, more than 70%
of changes within the executive cohort, which
includes all employees at vice president level
and above, were appointed from internal
talent, reflecting the strength of our leadership
pipeline and ongoing focus on developing
and advancing colleagues.
Sustainability remains core to our strategy.
We have continued to deliver against our
Ambition Zero Carbon, with an 88.1%
reduction in Scope 1 and 2 greenhouse gas
(GHG) emissions since 2015. We are now
focusing on Scope 3 emissions to deliver our
ambition to achieve Science Based Net Zero
by 2045. We have made good progress with
our suppliers, with over 80% of eligible
spend from suppliers committed to science-
based targets. We have also announced the
world-first approval for medicines containing
a next-generation propellant (NGP) with
near-zero global warming potential.
Further information on our progress in
relation to our sustainability agenda can be
found in the Annual Report in section People
and Sustainability from page 40.
AstraZeneca’s 2025 performance
Science and Innovation
2025 has seen continued strong scientific
momentum in delivering our medicines to
patients with the delivery of 97 regulatory
events, with 69 contributing to the Group
scorecard, which is 15 more than our target
set at the beginning of the year. These
included
Datroway
in China,
Calquence
and
Imfinzi
in Japan, and
Airsupra
in the US.
AstraZeneca’s pipeline is in a catalyst-rich
phase across all therapy areas, with 85%
of programmes in the pipeline delivering
positive news. These included studies under
Enhertu
,
Tagrisso
, baxdrostat, laroprovstat
and gefurulimab.
Further details on the advancement of our
medicines is provided in the Therapy Area
Review from page 12 of the Annual Report.
Growth and Therapy Area Leadership
The Group has seen strong growth across
all therapy areas, supported by a diverse
and broad-based business. Total Revenue
increased by 9% (8% at CER) to
$58,739 million, Oncology Total Revenue
increased by 15% (14% at CER) to
$25,619 million, BioPharmaceuticals Total
Revenue increased by 5% (5% at CER)
to $22,995 million and Total Revenue from
Rare Disease medicines increased by 4%
(4% at CER) to $9,126 million.
This growth was powered by the Operations
teams across the business collectively
delivering 217 successful on-time market
launches across the year.
Further details on the 2025 financial results
can be found in this Annual Report from
page 50.
Delivery against strategy – 2025 Group scorecard performance
1
Target
2025
outcome
Science and Innovation: Annual pipeline progression
Pipeline progression events
29
36
Regulatory events
54
69
Growth and Therapy Area Leadership
2
Total Revenue
$58.2bn
$59.0bn
Achieve Group Financial Targets
Cash flow
3
$11.3bn
$11.9bn
Core EPS
4
$9.10
$9.24
1
For details of the Committee’s consideration of Group scorecard outcomes and a description of performance
measures, see from page 99.
2
Total Revenue target and outcome are at 2025 budget rates of exchange.
3
The Cash flow measure is set and evaluated at the actual exchange rate and is evaluated by reference to net cash flow
from operating activities less capital expenditure, adding back proceeds from disposal of intangible assets.
4
Core EPS target and outcome are at 2025 budget rates of exchange.
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Sustainability Statement
Additional Information
Financial Statements
Strategic Report
Directors’ Remuneration Report
TSR
Implementation of the Remuneration
Policy for 2026
Base pay for the CEO and CFO has been
reviewed in line with our Remuneration
Policy and will increase by 4%, in line with
the average salary increases for the wider
workforce in the UK. Our emphasis remains
on delivering performance-related pay and
setting stretching targets. Our short and
long-term incentive structures remain
unchanged, maintaining continuity and
alignment with Ambition 2030.
We have made a minor adjustment to the
Sustainability metric for the 2026 PSP.
Our commitment to reducing value chain
emissions remains unchanged, for the 2026
PSP we will be focussing in on the NGP
transition, as set out in more detail on
page 105.
There are no changes to executive
remuneration arrangements relating to
the harmonisation of our listing structure.
Annual General Meeting and
shareholder engagement
The Committee was pleased that the 2024
Directors’ Remuneration Report received
support from 96.4% of shareholders at the
Company’s 2025 Annual General Meeting
(AGM). We were also pleased to receive a
99.36% vote in support of the harmonisation
of our global listing to provide access to the
broadest available pool of capital to enable
our next phase of growth.
Following the AGM, we have undertaken
extensive engagement with shareholders
and proxy advisors to discuss our executive
remuneration arrangements. We reached
shareholders representing over 44.5% of
our issued share capital, through written
communications and meetings with several
of our top shareholders and proxy advisors.
We are grateful for the time investors have
spent with us and welcome their ongoing
feedback.
Throughout this engagement we reiterated
our commitment to the clear linkage
between pay outcomes and performance
delivered for investors, and used this year’s
consultation period as an early opportunity
to gather shareholders’ initial views on what
we should be considering as we look ahead
to reviewing our Remuneration Policy for
approval in 2027.
2025 Remuneration outcomes
Our remuneration decisions continue
to be anchored in rigorous performance
assessment. When approving annual bonus
outcomes, we therefore considered the
Group scorecard along with the business
and individual performance over 2025
including other achievements across the
enterprise such as advancing our People
and Sustainability priorities. In that context,
the Committee believes that the payments
outlined below fairly reflect performance.
Annual bonus
When determining bonus outturns, the
Committee considered the formulaic
outcome from the Group scorecard along
with wider business and individual impact
and performance in 2025. This included
consideration of Pascal’s leadership of
external strategy, investment, science
momentum and sustainability; and
Aradhana’s success in ensuring financial
resilience and operating leverage. The
Committee determined to award an annual
bonus equivalent to 184% of target (92%
of maximum) to Mr Pascal Soriot and 162%
of target (81% of maximum) to Dr Aradhana
Sarin (equivalent to 276% and 162% of base
pay respectively). Details of the factors
considered to determine the bonuses are
provided from page 99.
These outcomes align with the bonuses (as
a percentage of maximum) paid to higher
performing colleagues in the wider
workforce.
Long-term incentives
Our long-term incentive (LTI) targets were set
at a stretch level to incentivise and reward
sustainable outperformance and as a result
of three very strong years, our 2023 award
will vest towards the upper end of the possible
range. The three-year performance period
for PSP awards granted to our senior leaders
in 2023, ended on 31 December 2025.
Awards for all participants will vest at 97%
of maximum, as shown from page 102, and
reflects continued strong performance.
Achieved
Science and Innovation: Annual pipeline progression
85%
Growth and Therapy Area Leadership
72%
Achieve Group Financial Targets
66%
Achieved
Achieved
Science and Innovation: First approvals and NME
volume over three years
100%
Growth and Therapy Area Leadership
100%
Net Cash flow
100%
Relative TSR
84%
Sustainability: Ambition Zero Carbon
100%
Achieved
1
When determining bonus outturns, the Committee considered the formulaic outcome from the Group scorecard along
with wider business and individual impact and performance in 2025, including sustainability achievements.
2025 Annual bonus scorecard performance
1
2023 PSP performance
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Sustainability Statement
Additional Information
Financial Statements
Strategic Report
Directors’ Remuneration Report
Directors’ Remuneration Report
continued
Global pharmaceuticals
1
European pharmaceuticals
2
Global Median
£13.9m
AstraZeneca
£11.74m
Positioning of our CEO against our pharmaceutical peers
Target Total Direct Compensation (base pay, target annual bonus and target LTI)
0
2
4
6
8
10
12
14
16
18
20
(£m)
incentives across the organisation, including
eligibility, vehicle mix and performance
alignment. The Committee actively
considers relevant data to ensure equitable
pay decisions and incentive outcomes, and
supports management’s ongoing activities
to embed bias-free reward decision making,
strengthen manager capability and evolve
tools that enable fair and consistent
outcomes across geographies, job families
and the entirety of our workforce.
We have sustained our commitment to
setting performance targets that are aligned
to our strategy, transparent, stretching and
rigorously approved. We apply a
comprehensive and robust process working
in tandem with the Science, Sustainability
and Audit Committees, along with our
external advisors to set stretching targets
and to assess outcomes in the context of our
internal ambitions and market consensus.
We believe our pay for performance
approach has been an important factor
in supporting AstraZeneca’s success.
In addition to overseeing the individual
reward arrangements for the Chair,
Executive Directors, SET and Company
Secretary, the Committee has spent time
reviewing the reward in place for our critical
talent and individuals with potential to become
SET members to ensure that we are utilising
the Policy appropriately. This is particularly
important given the pressures we face
in demand for our talent on a global basis.
Next steps
We trust that this Remuneration Report
provides a clear explanation of how the
Policy has been implemented in 2025
and how remuneration outcomes reflect
performance. We ask for your support
for the Directors’ Remuneration Report
at the Company’s AGM in April 2026,
and we welcome your continued dialogue
and feedback.
Sheri McCoy
Chair of the Remuneration Committee
During these discussions we highlighted
a key challenge we face relating to pay
compression. The Policy provides the
overarching framework for reward across
all AstraZeneca employees globally and is
designed to enable us to attract and retain
talent at all levels, countries and functions.
The CEO’s maximum variable opportunity
sets an effective ceiling for reward, which
presents challenges when recruiting and
retaining senior executive roles below the
CEO level.
Independent market data shows that LTI
opportunities for global top R&D executives
at the median and upper quartile are materially
higher than UK market norms. Our track
record of strong performance means our
leaders are highly visible and regularly
targeted by competitors, underscoring
the importance of our Policy enabling
competitive reward globally while managing
pay compression risks below Executive
Director level.
Given our size, complexity, global footprint,
the pay compression dynamics outlined
above, and the realities of our talent market,
we consider global pharmaceutical peers
as the most relevant peer group when
benchmarking executive remuneration.
External market data indicates that our CEO’s
target total direct compensation remains
below the global median and we aspire
to close this gap over time.
Our Policy will be due for renewal at the
2027 AGM. We look forward to continuing
our engagement with shareholders over the
course of next year as we evaluate how we
can ensure that our Policy allows us to offer
market competitive remuneration for our
key talent at Board level and below, while
maintaining our strong focus on pay for
performance to incentivise the sustainable
value creation for our shareholders over the
long term.
Key Committee activities in 2025
In May 2025, the Committee welcomed
Diana Layfield, a member of the Board and
the Science Committee since 2020 to the
Remuneration Committee.
AstraZeneca remains committed to equitable
and market-competitive total reward for our
global workforce. In 2025, the Committee
continued to review information regarding
the participation and design of long-term
1
Global pharma peer group consists of: AbbVie Inc., Amgen Inc., BMS, Eli Lilly and Co, Gilead Sciences Inc.,
Johnson & Johnson, Merck & Co. Inc. and Pfizer Inc.
2
European pharma peer group consists of: Bayer Aktiengesellschaft, GSK plc, Merck KGaA, Novartis AG,
Novo Nordisk A/S, Roche Holding AG and Sanofi.
Remuneration includes base pay, target annual bonus and the expected value of LTI awards. Benchmarking data
has been provided by the Committee’s independent adviser.
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Sustainability Statement
Additional Information
Financial Statements
Strategic Report
Directors’ Remuneration Report
CEO
CFO
£5,000
£10,000
£15,000
£
20,000
£0
£ʼ000
£
7,846
£
17,696
Share price appreciation on long-term incentive awards
PSP (subject to a 2-year holding period)
Annual bonus (50% subject to deferral for 3 years)
Fixed pay
CEO fixed vs performance-linked (%)
33%
Short-term
67%
Long-term
Fixed
9%
Performance-linked
91%
Base pay
Benefits fund
Pension
Annual bonus – cash
Annual bonus – shares
PSP
CFO fixed vs performance-linked (%)
36%
Short-term
64%
Long-term
Fixed
13%
Performance-linked
87%
Base salary
Benefits fund
Pension
Annual bonus – cash
Annual bonus – shares
PSP
Annual
bonus
(halved)
1
PSP
ʼ
26
Executive Directorsʼ variable pay
Performance period
Deferral period
Holding period
ʼ2
7
ʼ2
8
ʼ2
9
ʼ
30
See from page 97 for further information on the annual
bonus and PSP outcome.
When determining bonus awards, the Committee considered
the formulaic outcome from the Group scorecard along
with wider business and individual impact and performance
in 2025, including Sustainability achievements.
Fixed pay consists of base pay and benefits funding.
Further information on Executive Directors’ realised pay
for 2025 is on page 97.
Based on maximum payout scenarios for the CEO assuming maximum
of 300% and 850% of base pay for annual bonus and PSP respectively.
Based on maximum payout scenarios for the CFO assuming maximum of 200%
and 550% of base pay for annual bonus and PSP respectively.
1
Half of the annual bonus is deferred for three years.
See from page 99 for further details on plan design.
Group scorecard
performance
Achieved 73.5% of max
Not Achieved 26.5%
2023 PSP
performance
Achieved 97%
Lapsed 3%
Fixed remuneration
Annual bonus
Long-term incentives
Shareholding
requirement
Post-cessation
shareholding
requirement
Pascal Soriot
(CEO)
Base pay:
£1,606,887
Benefits fund
Pension: £176,758
(equivalent to 11% of
base pay)
Max: 300%
base pay
Target: 150%
base pay
Deferred: 50%
for three years
Max: 850%
base pay
Performance
period: three years
Holding period:
two years
Holding
requirement:
1,150% base
pay
Holding
requirement
1,150% base
pay for two
years
post-cessation
Aradhana
Sarin
(CFO)
Base pay:
£1,029,137
Benefits fund
Pension: £113,205
(equivalent to 11% of
base pay)
Max: 200%
base pay
Target: 100%
base pay
Deferred: 50%
for three years
Max: 550%
base pay
Performance
period: three years
Holding period:
two years
Holding
requirement:
750% base pay
Holding
requirement:
750% base pay
for two years
post-cessation
Executive Directors’ realised pay 2025 outcomes
What our Executive
Directors earned
Formulaic outcome of 2025 Group
scorecard and 2023 PSP
Looking ahead
Executive Directors’ remuneration for 2026
Corporate Governance
Sustainability Statement
Additional Information
Financial Statements
Strategic Report
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Directors’ Remuneration Report
Remuneration at a glance
Our focus on incentivising innovative
science aligns with our patient-centric
culture, as we strive to push the boundaries
of science to deliver life-changing medicines
to patients. The 2026 performance
measures are closely aligned with our
strategic priorities, as shown below.
AstraZeneca aims to continue to deliver
great medicines to patients while maintaining
cost discipline and a flexible cost base,
driving operating leverage and increased
cash generation. To incentivise and reward
delivery of great performance over the short
and longer term, the Committee carefully
considers the balance of science, financial
and sustainability measures between the
annual bonus and PSP.
Strategic pillar
Science and Innovation
Remuneration performance measures
Science indices
Our science measures incentivise the
development of NMEs and the maximisation
of the potential of existing medicines.
Bonus performance is assessed on pipeline
progressions through Phase II and Phase III
clinical trials. These reflect the outcome of
nearer-term strategic investment decisions.
As registrational Phase II trials become more
common practice (for example in relation
to cell therapy), pipeline progression events
for bonus performance includes pivotal
investment decisions for registrational
Phase II and Phase III trials.
In contrast, PSP performance is assessed
on the volume of NMEs in Phase III and the
registration stage, which reflects the outcome
of longer-term strategic investment decisions.
Additionally, we measure regulatory
submissions and approvals for bonus, and
regulatory approvals for PSP to drive the
conversion of scientific progress into
commercial revenue over the short term
(bonus) and the longer term
(PSP).
Together, these science measures incentivise
innovation and sustainable success along the
length and breadth of the pipeline, leading to
commercial growth.
Strategic pillar
People and Sustainability
We are committed to people and making
a difference to society. Assessment of
performance against this pillar is captured
through our holistic review of each Executive
Director’s individual performance (detailed
on pages 100 and 101) as part of the final
determination of annual bonus, including
consideration of our progress against our
People and Sustainability aspirations:
•
Deliver a great employee experience
by promoting inclusion and diversity
and fostering personal growth and
enterprise leadership.
•
Leading on climate, equity and resilience
by accelerating Ambition Zero Carbon,
leading in addressing the connection
between climate and health, and driving
health equity and system resilience.
•
Enabling an agile organisation by
developing and implementing Gen AI
strategy, investing in site footprint and
workplaces, and simplifying processes.
Value Chain Emissions
This measure supports our ambition to
reducing our Scope 3 GHG emissions in
our value chain and the 2026 PSP, focuses on
emissions reductions due to the NGP
transition, adopting a carbon intensity metric
expressed as kilograms of CO
2
equivalent per
pMDI device.
Strategic pillar
Growth and Therapy Area Leadership
Remuneration performance measures
Total Revenue
Our Total Revenue measure is included in the
bonus and the PSP, reflecting the importance
of incentivising sustainable growth in both
the short and longer term.
For more information about our
strategic priorities, see from
page 10.
For more information about the
2026 performance measures,
see from page 105.
Financial targets
Achieve Group Financial Targets
Remuneration performance measures
Cash flow
Ensures that we can sustain investment in our
pipeline and therapy areas while at the same
time meeting our capital allocation priorities.
Cash flow is included in both the bonus and
the PSP, ensuring a focus on both shorter-
and longer-term cash flow generation and
balance sheet strength.
Core EPS
Incentivises operational efficiency and cost
discipline and remains a key measure of our
profitability and a focus for our investors.
Total Shareholder Return (TSR)
Assessed relative to our peer group of
companies, the TSR measure rewards
positive performance that our shareholders
also directly benefit from. This measure
incentivises outperformance versus our peer
group and promotes the delivery of long-term
sustainable returns for our shareholders.
Key
Annual bonus
PSP
KPI
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How our performance measures for 2026 support the delivery of our strategy
We set stretching targets that incentivise our leaders to deliver exceptional performance, and to drive sustainable results for our patients,
our employees and our shareholders. For the 2026 targets:
•
The Committee has reviewed the proposed targets against internal and external forecasts, including market consensus and peer
group performance, and is comfortable that the level of stretch promotes truly exceptional performance in line with the delivery
of the Ambition 2030.
•
Financial performance goals under the 2026 Group scorecard and PSP would require achievement and growth in excess of the average
expected of the industry, particularly when taking the significant capital investment expected to be made during the performance period.
Consistent with our approach in prior years, we undertake the following robust process when setting annual bonus and PSP targets and
assessing outcomes:
Stage 1 –
Target
setting
Science targets are based on a cohort of scientific opportunities
specified at the start of the performance period. Opportunities
represent potential achievements through the pipeline, from an early
stage where our scientists work to discover new molecules, through
to ultimately obtaining approvals and getting new medicines to
patients. Rewarding success at each stage recognises the importance
of creating and maintaining a long-term sustainable pipeline. Stretch
of proposed targets is reviewed by the Science Committee, taking
into account factors such as the expected net present value of the
pipeline and the anticipated financial contribution it will make, past
performance, the external regulatory environment, and internal
resourcing and efficiencies. Targets for realisation of these
opportunities are ambitious. The outlook for the delivery of the
pipeline is increasingly challenging given the rising proportion of new
modalities and innovation, representing previously untested science.
Proposed targets for the Sustainability measure are reviewed and
endorsed by the Sustainability Committee and exceed the 1.5°C
Paris Agreement glide path. Our decarbonisation ambitions are
increasingly challenging to deliver in the context of broader
enterprise growth, particularly the higher supply volumes required
to fulfil demand for our medicines.
Financial target metrics align to the Board-approved Mid-Term
Plan (MTP), which sets the financial framework over three years.
The MTP process includes detailed business reviews to challenge
plans and efficiencies. The Committee sets targets considering
consensus expectations, independent analytics, and anticipated
challenges and opportunities. Total Revenue and Core EPS are
set and assessed at budget exchange rates to neutralise currency
impacts; the Committee also compares targets to prior plans
at constant exchange rates to ensure ambitious growth. Where
consensus differs from internal forecasts, the Committee
investigates drivers (as an example, capital expenditure
assumptions). This range of data is used by the Committee to
ensure the stretching nature of performance targets is robustly
tested. Additionally, the PSP TSR measure is designed to reward
strong performance relative to our peers.
Stage 2 –
Committee
review and
approval of
targets
The Committee thoroughly reviews and challenges targets proposed
by management, working in partnership with the Science and
Sustainability Committees to ensure targets are stretching
and robust.
The Committee is provided with considerable supporting material
for each metric and receives briefings from senior leaders across
AstraZeneca. The science measures are reviewed and endorsed
by the Science Committee, with a focus on ensuring that the targets
will result in long-term sustainable value creation, and the
Committee reviews and approves the full cohort of opportunities.
The sustainability metric within the PSP is aligned to our Ambition
Zero Carbon goal and reflects the importance of decarbonisation,
with a focus on value chain (Scope 3) GHG emissions.
The sustainability metric has been reviewed and endorsed
by our Sustainability Committee.
Committee members participate in the full Board discussions on
the strategy, MTP and budget, which form the basis for the targets.
The Committee considers how proposed financial targets align with
the MTP and budget; prior years’ outcomes (in absolute terms and
against target); how the ambition has changed from the prior MTP
and budget; external guidance the Company has provided or plans
to give; consensus from external financial analysts and factors it
may be impacted by; and the underlying assumptions. Statistical
analysis conducted by the Committee’s independent adviser is also
used to assess the proposals. This includes an assessment of
historical levels of performance volatility.
Stage 3 –
Performance
assessment
At the end of the period, final performance against each metric is
assessed. Outcomes are calculated based on performance against
each weighted metric. Each performance measure is assessed on
a standalone basis, so that underperformance against one measure
cannot be compensated for by overperformance against another.
Data for the metrics is taken from the Group’s financial reports which
are reviewed by the Audit Committee and approved by the Board.
The Science Committee independently considers and informs the
Committee whether science achievements represent a fair and
balanced outcome, reflecting genuine achievements and pipeline
progression. The sustainability metric within the PSP is validated
by the Sustainability Committee. Apart from Cash flow, which is set
at actual rates of exchange, financial metrics are set at budget rates
of exchange and evaluated at those rates at year end, which means
they are not directly comparable year-on-year. The Committee is,
however, provided with data to allow it to conduct year-on-year
analyses.
Stage 4 –
Determination
of Executive
Directors’
bonuses
For annual bonus, the fairness of the formulaic Group scorecard
outcome is considered in the context of overall business performance
and the experience of shareholders. Such considerations include TSR
performance and each Executive Director’s personal impact on the
delivery of the strategy, wider Sustainability performance and
other organisational achievements, such as the realisation of
technology-based milestones. Each year, there are important
individual deliverables beyond the scorecard metrics which are
taken into account when determining individual bonuses.
Having considered the Group scorecard outcome, overall business
performance, the experience of shareholders and individual
performance, as detailed from page 100, the Committee carefully
determines a final bonus outcome for each Executive Director that
is considered fair and appropriate for the year’s performance, and
is in the best interests of shareholders.
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How the Remuneration Committee ensures targets are stretching
The elements within the Executive Directors’ realised pay are colour coded:
•
Fixed remuneration has a light blue border and is found on page 98.
•
Annual bonus has a yellow border and can be found on pages 98 to 102.
•
Long-term incentives (LTIs) has a magenta border and can be found on pages 102 to 105.
Executive Directors’ remuneration
This section of the Directors’ Remuneration Report sets out the Executive Directors’ remuneration for the year ended 31 December 2025,
alongside the remuneration that will be paid to Executive Directors during 2026.
Audited
Executive Directors’ realised pay for 2025 (single total figure of remuneration)
The table below sets out all elements of realised pay receivable by the Executive Directors in respect of the year ended 31 December 2025,
alongside comparator figures for 2024. This includes the vesting of PSP awards from 2023 following the three-year performance period.
These shares are subject to a further two-year holding period. The increase in AstraZeneca’s share price over the period of grant to vest has
provided the Executive Directors with a significant increase in value of the equity components of their reward. £1,981,570 of Mr Soriot’s and
£878,592 of Dr Sarin’s 2025 realised pay is attributable to share price increases. The benefit of the increased share price has also been
experienced by shareholders.
The Committee did not exercise any discretion in relation to the LTI outcomes or the formulaic outcome of the Group scorecard.
£’000
Base
pay
Taxable
benefits
Pension
Other
Total fixed
Annual
bonus
Long-term
incentives
1
Total
variable
Single total
figure
Share price
appreciation
as % of
single total
figure
Pascal Soriot
2025
1,545
143
170
–
1,858
4,259
11,579
15,838
17,696
11%
2024
1,486
138
163
–
1,787
3,499
11,345
14,844
16,631
9%
Aradhana Sarin
2025
990
10
109
–
1,109
1,603
5,134
6,737
7,846
11%
2024
951
14
105
–
1,070
1,494
5,030
6,524
7,594
9%
1
Long-term incentive values disclosed in 2024 have been recalculated using the average closing share price for the three months ended 31 December 2025. See page 102.
The following sections provide further detail on the figures in the above table, including the underlying calculations and assumptions and
the Committee’s performance assessments for variable remuneration.
The Annual bonus section is set out from page 98 to 102 and the Long-term incentives section from page 102 to 105. Information about
the Executive Directors’ remuneration arrangements for the coming year, ending 31 December 2026, is highlighted in grey boxes.
Planned implementation for 2026
Content contained within a grey box
indicates planned implementation for 2026.
Audited
Audited information
Content contained within the Audited
panel indicates that all the information
within has been subject to audit.
Key:
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Annual bonus
2025 Annual bonus
Annual bonuses earned in respect of
performance during 2025 are included
in the realised pay table.
Detailed information on the Committee’s
approach to target setting and assessment
of performance is set out from page 96.
Half of the Executive Directors’ pre-tax bonus
is compulsorily deferred into Ordinary Shares
which are released three years from the date
of deferral. Bonuses are not pensionable.
Taxable benefits
The totals within taxable benefits include the
CEO’s allowance under AstraZeneca’s UK
Flexible Benefits Programme, under which
he can select benefits or take his allowance,
or any proportion remaining after the
selection of benefits, in cash (£120,231 taken
as cash). In 2025, benefits included additional
healthcare/death in service insurance, as
well as personal tax advice. The value of
this personal tax advice provided to each
Executive Director in 2025 was £17,891 and
£8,656 for the CEO and CFO respectively.
Fixed remuneration
Base pay
When awarding base pay increases, the
Committee considers, among other factors,
base pay increases applied across the UK
employee population. The increase to the
current Executive Directors’ base pay for
2026 will be in line with the UK all-employee
base pay budget at 4%.
Pension
The Executive Directors receive a pension
allowance of 11% of base pay, in line with
the wider UK workforce. During 2025, the
Executive Directors took their pension
allowance as a cash alternative to participation
in a defined contribution pension scheme.
Neither of the Executive Directors has a
prospective entitlement to a defined benefit
pension by reason of qualifying service.
Audited
Audited
Audited
Audited
Annual bonus in respect of performance during 2025
Bonus potential
as % of base pay
Bonus
payable in
cash
Bonus
deferred into
shares
Total bonus
awarded
£’000
Target
Maximum
Pascal Soriot
150%
300%
2,129.5
2,129.5
4,259
92% max
Aradhana Sarin
100%
200%
801.5
801.5
1,603
81% max
2025
2026
£’000
Total taxable
benefits
Taxable
benefits
Pascal Soriot
143
In line with
2025
Aradhana Sarin
10
In line with
2025
2025
2026
£’000
Change
from 2024
Base
pay
Change
from 2025
Base
pay
Pascal Soriot
4%
1,545
4%
1,607
Aradhana Sarin
4%
990
4%
1,029
2025
2026
£’000
Pensionable
base pay
Pension
allowance
Cash in lieu
of pension
Pension
allowance
Pascal Soriot
1,545
11% of
base pay
170
11% of
base pay
Aradhana Sarin
990
11% of
base pay
109
11% of
base pay
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Strategic Report
Directors’ Remuneration Report
Annual Report on Remuneration
continued
2025 Group scorecard assessment
Performance against the 2025 Group scorecard is set out below.
The Group scorecard is used in the determination of bonus payouts for all AstraZeneca employees. Each metric within the scorecard is
assessed on a standalone basis and has a defined payout range.
Performance below the specified threshold level for a metric will result in 0% payout for that metric. 100% of target bonus will pay out for
on-target performance, and 200% of target bonus will pay out for performance at or above maximum. Performance between threshold and
maximum is assessed on a pro rata basis. Maximum bonus payouts for the CEO and CFO for 2025 were capped at 300% and 200% of base
pay respectively. The payout range for each metric is capped in line with each Executive Director’s maximum bonus opportunity to ensure
underperformance against one metric cannot be compensated for by overachievement against another. The table below shows the
scorecard formulaic outcomes for the CEO and CFO as a percentage of target bonus.
2025 Group scorecard performance measures and metrics
Weighting
Threshold
(0% payout)
Target
(100% payout)
Maximum
(200% payout)
Outcome
Formulaic outcome
(% of target bonus)
Science and Innovation measures
Science and Innovation: Annual pipeline progression
Pipeline progression events
15%
15
29
44
36
22%
Regulatory events
15%
38
54
70
69
29%
Subtotal – Science and Innovation measures
30%
51%
Financial measures
Growth and Therapy Area Leadership
Total Revenue ($bn)
30%
56.5
58.2
60.0
59.0
43%
Achieve Group Financial Targets
Cash flow ($bn)
20%
9.6
11.3
13.0
11.9
27%
Core EPS ($)
20%
8.65
9.10
9.56
9.24
26%
Subtotal – Financial measures
70%
96%
Total
100%
147%
Key:
Bar charts are indicative of 2025 performance; scales do not start from zero.
Due to rounding, the total formulaic outcome differs from the arithmetic total of the individual metric outcomes disclosed above.
Pipeline progression events include Phase II starts and progressions, and NME and life-cycle management (LCM) positive pivotal trial
investment decisions. Regulatory events include NME and major LCM regional submissions and approvals. Further detail on our Science
and Innovation strategic priority and these events is included from page 10 of this Annual Report.
In 2025, the Growth and Therapy Area Leadership measure was based on Total Revenue. The Total Revenue and Core EPS measures are
both set and evaluated at budget exchange rates at the beginning of the year and evaluated at those rates at the end of the performance
period, so that any beneficial or adverse movements in currency, which are outside the Company’s control, do not impact reward outcomes.
The Cash flow measure is set and evaluated at the actual exchange rate and is evaluated by reference to net cash flow from operating
activities less capital expenditure, adding back proceeds from disposal of intangible assets, to be fully transparent with all elements easily
derived from the Group IFRS Cash Flow Statement.
Annual bonus
continued
Audited
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Overall assessment
During 2025, the Executive Directors’ individual performance was assessed in the following key areas which align with the Company’s objectives.
Pascal Soriot
In a year marked by significant geopolitical uncertainty, Mr Soriot successfully led AstraZeneca to deliver exceptional growth and another set of strong results,
advancing AstraZeneca towards Ambition 2030 and helping to reshape the future of healthcare. Key achievements considered by the Committee are set
out below.
Growth and Therapy
Area Leadership
Over 2025, Mr Soriot has fostered collaboration and shaped groundbreaking agreements with governments and policy makers
which have supported the strategic business and policy priorities, enabling future growth for AstraZeneca. These included an
industry leading agreement with the US government providing greater clarity over pricing and lowering the prices of medicines for
many patients in the US, engagements with the Chinese government and science leaders reinforcing AstraZeneca’s long-term
commitment to China, and announcements of some of the largest R&D and manufacturing investments in AstraZeneca’s history
at a number of strategic locations globally.
Under Mr Soriot’s leadership, AstraZeneca delivered more medicines to patients around the world in 2025 than ever before,
reflected in Total Revenue for the year increasing by 9% to $58.7 billion.
Science and Innovation
Under Mr Soriot’s leadership in 2025, significant progress has been made with transformative modalities which will drive Ambition
2030. This included capitalising on new pipeline opportunities in weight management, radioconjugates and next generation
immunology bispecifics. The Company also expanded efforts in genomic medicine and cell therapy including the highly competitive
acquisition of EsoBiotec.
Mr Soriot has continued to bring his judgement to bear in relation to investments in the pipeline which has resulted in industry-leading
momentum across all therapy areas. 2025 saw an unprecedented proportion of programmes in the pipeline delivering positive
news, including 16 Phase III positive clinical readouts. Results to highlight include the delivery of strong clinical data on surovatamig
(which has the potential to become a backbone standard of care across six haematologic malignancies) and the acceleration of
baxdrostat from Phase II acquisition to delivery of Phase III data and regulatory filing in two years. Other notable studies with positive
readouts included
Enhertu
,
Tagrisso
, laroprovstat and gefurulimab.
2025 also saw the approval of
Beyonttra
, the ninth of the 20 new medicines AstraZeneca hopes to deliver by 2030.
People and
Sustainability
Mr Soriot has continued to champion a culture of learning and growth across the enterprise, sponsoring a range of learning and
development offerings that enable employees and leaders to perform, grow, adapt and belong. In 2025, key investments have
been made to build on team members’ strengths and accelerate the ability to deliver the 2030 Ambition. Programmes include
“Leading Ambition 2030” targeted at senior leaders, “Thriving in the Age of AI”, with over 102,000 certificates awarded across
the levels of accreditation in 2025, and “Manager in Action” in which over 1,800 line managers have participated so far.
With AI reshaping the pace of science and business, Mr Soriot announced the creation of a dedicated Enterprise AI unit which will
rapidly advance enterprise AI transformation. This unit will deliver a single data foundation and accelerate high value AI initiatives
that will enable the delivery of Ambition 2030.
Externally, AstraZeneca retained the EcoVadis Gold Medal ranking; was recognised for bold sustainability leadership as one of
the top 20 Times Most Sustainable Companies, ranking in the 2025 FT Europe Climate Leaders List, inclusion in TIME World’s Best
Companies 2025, along with rankings in the Forbes World’s Top Companies for Women, Forbes World’s Best Employers, TIME
World’s Best Companies and the Financial Times Diversity Leaders 2026.
Internally, Mr Soriot has ensured focus remains on industry-leading progress for Ambition Zero Carbon with Scope 1 and Scope 2
Greenhouse Gas (GHG) reductions being ahead of the target for the end of 2025. 2025 also saw the first regulatory approvals for the
transition of the portfolio of inhaled medicines to the innovative next-generation propellant with near-zero Global Warming Potential,
progressing AstraZeneca’s Scope 3 GHG decarbonisation strategy.
Annual bonus
continued
Audited
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Sustainability Statement
Additional Information
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Strategic Report
Directors’ Remuneration Report
Annual Report on Remuneration
continued
Aradhana Sarin
Key achievements considered by the Committee in relation to Dr Sarin’s performance are set out below.
Performance delivery
Under Dr Sarin’s leadership, the Finance function enabled the delivery of another year of robust results. She steered the Company
through headwinds including the impact of the Inflation Reduction Act in the US, provided guidance on multiple business
development transactions, capital allocation decisions on Capex projects, and post-acquisition integration and risk management.
Dr Sarin successfully led teams focusing on the automation of controls and testing of AI projects for invoice matching and journal
entry which will be scaled through the enterprise.
Over 2025, Dr Sarin took on leadership roles in a number of significant projects including US listing harmonisation, US Tariff analysis
and mitigation plans, Most Favoured Nation pricing analysis, and negotiations for investments in the US and China, all of which pave
a path for future growth and innovation.
Building a Finance
Function of the Future
In a year where it has become more important than ever to invest in data foundations and technology, under Dr Sarin’s leadership,
Global Business Services (GBS) has continued to deliver for the enterprise, delivering annual savings of $40 million and freeing up
resources. GBS has successfully evolved from a scaled functional service provider into a transformation engine. The enterprise-
wide deployment of ServiceNow across 60+ services has unified service management into a single, cohesive framework and the
completion of the comprehensive process documentation has created a foundation for process re-engineering and AI-readiness
at scale, yielding over 70 optimisation initiatives, directly contributing to a 9% increase in organisational productivity.
Dr Sarin has continued to oversee the Axial programme, in which the enterprise is adopting the S4HANA platform. Significant
progress has been made over 2025 in this transformation programme, encompassing an expanded scope to more sites and
associated projects.
Great Place to Work
Dr Sarin continues to sponsor the Company’s global Network of Women employee resource group. As a recognition of her support
for women in STEM, healthcare and leadership, Dr Sarin was recognised by the Healthcare Businesswomen’s Association (HBA)
as the 2026 Woman of the Year. Over 2025, she continued to host the webcast “In conversation with” featuring highly accomplished
women discussing issues relevant to the workplace which now attracts thousands of listeners across the Company as well as externally.
Audited
Final determination of Executive Directors’ bonuses
In determining the annual bonus outturn for Executive Directors, the Committee considers the formulaic Group scorecard outcome, as well
as the overall business performance, shareholder experience and the personal contribution of the individual Executive Director. A description
of the Executive Directors’ personal achievements is detailed above.
Given the contributions made by both Mr Soriot and Dr Sarin in 2025 as outlined above, the Committee determined the bonus outturns
for the Executive Directors should be 184% of target (or 92% of maximum) to Mr Pascal Soriot and 162% of target (or 81% of maximum)
to Dr Aradhana Sarin.
Deferred Bonus Plan
Half of each Executive Director’s pre-tax annual bonus is ordinarily deferred under the Deferred Bonus Plan (DBP). In respect of the bonus
deferred, the Executive Director is granted a conditional award over shares. No further conditions apply to DBP shares. One half of the bonus
earned in respect of performance during 2024 was deferred and details of the consequent DBP awards granted in 2025 are shown below.
One half of the Executive Directors’ bonus earned in respect of performance during 2025 will be deferred and the consequent DBP awards
are expected to be granted in March 2026.
Audited
2025 Grant
1
2026 Grant
Ordinary Shares
granted
Grant date
Grant price
(pence per share)
2
Face value
£’000
2025 Bonus deferred
£’000
Pascal Soriot
14,623
4 March 2025
11963
1,749
2,129.5
Aradhana Sarin
6,243
4 March 2025
11963
747
801.5
1
One half of the bonus earned in respect of performance during 2024 was deferred into shares, with the consequent DBP awards granted in 2025.
2
The grant price is the average closing share price over the three dealing days preceding grant.
Annual bonus
continued
Audited
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Long-term incentives included in the Executive Directors’ realised pay for 2025 figure: 2023 PSP
The Executive Directors’ realised pay for 2025 includes the value of PSP awards with a performance period that ended 31 December 2025.
These shares and dividend equivalents will not be released to the Executive Directors until the awards vest at the end of the holding period.
The value of the shares due to vest has been calculated using the average closing share price over the three-month period ended
31 December 2025 (13202 pence). The table below provides a breakdown showing the face value of these shares at the time they were
granted, the value that is attributable to share price appreciation since grant, and the value of dividend equivalents accrued on these shares
over the relevant performance period. Further information about the individual awards and performance assessments follows the table.
Audited
Long-term incentive awards with performance periods ended 31 December 2025
Value of shares due to vest
Ordinary Shares
granted
Performance
outcome
Face value
at time
of grant
1
£’000
Value due to
share price
appreciation
2
£’000
Dividend equivalent
accrued over
performance period
£’000
Long-term
incentives total
£’000
Pascal Soriot
2023 PSP
85,808
97%
9,006
1,982
591
11,579
Aradhana Sarin
2023 PSP
38,046
97%
3,993
879
262
5,134
1
Calculated using the grant price of 10821 pence, being the average closing share price over the three dealing days preceding the grant of the 2023 PSP awards.
2
Calculated using the difference between the grant price and the average closing share price over the three-month period ended 31 December 2025. The average closing share price
over the three-month period ended 31 December 2025 was 13202 pence.
The 2023 PSP awards granted to Mr Soriot and Dr Sarin on 4 March 2023, are due to vest and be released on 4 March 2028 on completion
of a further two-year holding period. Performance over the period from 1 January 2023 to 31 December 2025 will result in 97% of the awards
vesting, based on the following assessment of performance.
Annual bonus
continued
Long-term incentives
We intend to disclose the 2026 Group scorecard outcome and details of the performance hurdles and targets in the 2026 Directors’
Remuneration Report following the end of the performance period. The performance targets are currently considered to be commercially
sensitive as prospective disclosure may prejudice the Company’s commercial interests. Executive Directors’ individual contribution will
be assessed by reference to individual goals in line with the Company’s objectives for the year.
Audited
2026 Group scorecard performance measures and metrics
Measure weighting
Underlying metrics (if applicable)
Metric weighting
2026 target
Science and Innovation: Annual pipeline progression
30%
Pipeline progression events
15%
C
Regulatory events
15%
C
Growth and Therapy Area Leadership
30%
Total Revenue
30%
C
Achieve Group Financial Targets
40%
Cash flow
20%
C
Core EPS
20%
C
Key:
Target increased vs 2025 target
Target decreased vs 2025 target
Target constant
C
Commercially sensitive
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Directors’ Remuneration Report
Annual Report on Remuneration
continued
The Growth and Therapy Area Leadership
target (measuring Total Revenue) is set at
budget exchange rates at the beginning
of the performance period and evaluated
at those rates at the end of the performance
period, so that any beneficial or adverse
movements in currency, which are outside
the Company’s control, do not impact
reward outcomes.
The Cash flow measure is assessed using
cumulative net cash flow from operating
activities less capital expenditure, adding
back proceeds from the disposal of
intangible assets.
The 2023 PSP sustainability metric focused
on reduction in Scope 1 and Scope 2 GHG
emissions glide path (Ambition Zero Carbon).
For more information about the Company’s
sustainability initiatives, including Ambition
Zero Carbon see Climate change from
page 42.
AstraZeneca ranked sixth within the TSR
peer group. The TSR peer group for the 2023
PSP consisted of AbbVie, Amgen, Astellas,
BMS, Daiichi Sankyo, Eli Lilly, Gilead, GSK,
Johnson & Johnson, Merck KGaA, Moderna,
MSD, Novartis, Novo Nordisk, Pfizer, Roche,
Sanofi and Takeda.
PSP awards granted during 2025
During 2025, conditional awards of shares were granted to the Executive Directors with face values equivalent to 850% of base pay for
Mr Soriot and 550% of base pay for Dr Sarin under the PSP. Face value is calculated using the grant price, being the average closing share
price over the three dealing days preceding grant.
Performance will be assessed over the period from 1 January 2025 to 31 December 2027 against the measures outlined below to determine
the proportion of the award that vests. A further two-year holding period will then apply before vesting, which is scheduled to occur on the
fifth anniversary of grant.
Ordinary
Shares
granted
Grant
date
Grant price
(pence per
share)
Face value
£’000
End of
performance period
End of
holding period
Pascal Soriot
109,781
4 March 2025
11963
13,133
31 December 2027
4 March 2030
Aradhana Sarin
45,494
4 March 2025
11963
5,442
31 December 2027
4 March 2030
The 2025 PSP performance measures focus on scientific, ESG, commercial and financial performance over the three-year performance
period. The five performance metrics attached to the 2025 PSP awards are detailed below. Twenty per cent of the award will vest if the
threshold level of performance is achieved; the maximum level of performance must be achieved under each measure for 100% of the
award to vest.
Relative total shareholder return (TSR) (20% of award
)
TSR performance is assessed against a predetermined peer group of global pharmaceutical companies and consists of AbbVie, Amgen,
Astellas, BMS, Daiichi Sankyo, Eli Lilly, Gilead, GSK, Johnson & Johnson, Merck KGaA, Moderna, MSD, Novartis, Novo Nordisk, Pfizer, Roche,
Sanofi and Takeda. The rank which the Company’s TSR achieves over the performance period will determine how many shares will vest
under this measure.
TSR ranking of the Company
% of award that vests
Median
20% (threshold for payout)
Between median and upper quartile
Pro rata
Upper quartile
100%
Long-term incentives
continued
Audited
2023 PSP performance measures
and metrics
Outcome
Payout
Science and Innovation:
First approvals and NME
volume over three years
NME Phase III/registrational volume
12%
10
20
20
12%
Regulatory events
18%
13
26
30
18%
Subtotal – Science and Innovation
1
30%
30%
Growth and Therapy Area
Leadership ($bn)
20%
43
50.5
59
20%
Cash flow ($bn)
20%
22
31
31.5
20%
Total shareholder return
20%
Median
UQ
2
6th
17%
Ambition Zero Carbon
10%
142 ktCO
2
e
91 ktCO
2
e
73ktCO
2
e
10%
Total
1
100%
97%
Key:
Bar charts are indicative of 2023 PSP performance; scales do not start from zero.
Due to rounding, the total outcome differs from the arithmetic total of the individual metric outcomes disclosed above.
1
The subtotal and total reflect the weightings of the individual metrics.
2
UQ = Upper Quartile.
Weighting
Maximum
(100%
vesting)
Threshold
(20%
vesting)
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Corporate Governance
Sustainability Statement
Additional Information
Financial Statements
Strategic Report
Directors’ Remuneration Report
Net Cash flow (20% of award)
The Cash flow measure is assessed using cumulative net cash flow from operating activities less capital expenditure adding back proceeds
from the disposal of intangible assets. The level of vesting under this measure is based on a scale between a threshold target and an
upper target.
Cash flow
% of award that vests
$27.5bn
20% (threshold for payout)
Between $27.5bn and $31.5bn
Pro rata
$31.5bn
75%
Between $31.5bn and $35.5bn
Pro rata
$35.5bn and above
100%
Growth and Therapy Area Leadership (20% of award)
For PSP awards granted in 2025, the Growth and Therapy Area Leadership metric is Total Revenue. Disclosing the threshold and maximum
hurdles for this measure could be construed to constitute financial guidance, which is not the Company’s intention. The Growth and Therapy
Area Leadership (Total Revenue) measure is thus considered to be commercially sensitive and will be disclosed following the end of the
performance period, in the 2027 Directors’ Remuneration Report. This measure is evaluated by reference to budget exchange rates.
Science and Innovation: First approvals and NME volume over three years (30% of award)
Performance is assessed using dual indices which measure NME Phase III/registrational volume and regulatory events, allowing disclosure
of targets at the beginning of the performance period.
NME Phase III/registrational volume
(12% of award)
% of award that vests
Regulatory events (18% of award)
% of award that vests
14
20% (threshold for payout)
18
20% (threshold for payout)
Between 14 and 21
Pro rata
Between 18 and 26
Pro rata
21
75%
26
75%
Between 21 and 28
Pro rata
Between 26 and 35
Pro rata
28
100%
35
100%
Ambition Zero Carbon (10% of award)
For the 2025 PSP, this measure encompasses aspects of our value chain (Scope 3) GHG emissions and for the 2025 PSP comprises the
aggregate reductions from the NGP transition, primary distribution and business travel.
Emissions
% of award that vests
1,846 ktCO
2
e split as:
NGP transition: 1,553 ktCO
2
e (which equates to a carbon intensity of 16.7 kgCO
2
e per device)
Business travel and primary distribution: 293 ktCO
2
e
20% (threshold for payout)
1,632 ktCO
2
e split as:
NGP transition: 1,356 ktCO
2
e (which equates to a carbon intensity of 14.6 kgCO
2
e per device)
Business travel and primary distribution: 276 ktCO
2
e
75%
1,434 ktCO
2
e split as:
NGP transition: 1,172 ktCO
2
e (which equates to a carbon intensity of 12.9 kgCO
2
e per device)
Business travel and primary distribution: 262 ktCO
2
e
100%
Long-term incentives
continued
Audited
104
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Corporate Governance
Sustainability Statement
Additional Information
Financial Statements
Strategic Report
Directors’ Remuneration Report
Annual Report on Remuneration
continued
PSP performance measures for 2026 grant
The sustainability measure with the 2026 PSP has been updated as set out below. All other measures remain unchanged from the 2025
PSP award.
PSP performance measure
Measure weighting
Underlying metrics (if applicable)
Metric
weighting
Threshold
(20%
vesting)
Maximum
(100%
vesting)
Science and Innovation:
First approvals and NME
volume over three years
30%
NME Phase III/registrational volume
12%
11
22
Regulatory events
18%
18
36
Growth and
Therapy Area Leadership
20%
Total Revenue
Commercially sensitive
until end of
performance period
Cash flow
20%
$28bn
$36.5bn
Relative TSR
20%
Median
Upper
Quartile
Sustainability
10%
Value Chain emissions intensity in kgCO
2
e per
pMDI device (Scope 3)
13.4 kgCO
2
e
10.1 kgCO
2
e
Regulatory events measure NME and major LCM approvals (taking into account the first approval over the performance period). NME
Phase III/registrational volume measures the total NME pipeline volume at the end of the performance period. These two items ensure
that management is assessed on both R&D late-stage delivery (approvals) and also future pipeline sustainability (volume).
Disclosing the threshold and maximum hurdles for the Growth and Therapy Area Leadership (Total Revenue) measure could be construed
to constitute financial guidance, which is not the Company’s intention. The Total Revenue measure is thus considered to be commercially
sensitive and will be disclosed following the end of the performance period.
The Total Revenue measure is evaluated by reference to budget exchange rates such that beneficial or adverse movements in currency,
which are outside the Company’s control, do not impact reward outcomes. The companies in the TSR comparator group are shown
on page 103.
The Cash flow measure is assessed using cumulative net cash flow from operating activities less capital expenditure adding back
proceeds from the disposal of intangible assets. Capital expenditure is expected to increase materially during the performance period
reflecting continued investments in new modalities, and the build-out of capability and capacity to support the 2030 Ambition, including
previously announced investments in the US, Singapore and China. In addition, cash flow is expected to be temporarily affected by specific
factors which will impact near-term phasing of working capital.
We remain committed to Ambition Zero Carbon and the reduction of value chain emissions. The 2026 PSP builds on the approach to
Scope 3 emissions reduction introduced in the 2025 PSP, with the Sustainability metric for the 2026 PSP focusing on the NGP transition.
This reflects the NGP’s material impact on Scope 3 carbon emissions (26% of total emissions in 2025) and its status as the largest device
transition in AstraZeneca’s history. To ensure the measure supports both enterprise performance and the successful delivery of clinical
milestones and device transition across markets, we will adopt a carbon intensity metric expressed as kilograms of CO
2
equivalent per
pMDI device (kgCO
2
e/device). This approach is intended to align executive incentives with our objective to deliver near-zero carbon
intensity from our pMDI portfolio by 2030 while increasing the number of patients served.
As described on page 96, the Committee takes into account a wide range of data to ensure that the stretching nature of PSP hurdles is
robustly tested and that financial targets are aligned with the Company’s Mid-Term Plan. The Committee takes consensus and exchange
rates into account when determining the appropriate level of stretch relative to prior plans and performance outturns.
PSP awards are expected to be granted to the Executive Directors in March 2026. The PSP award to be granted to Mr Soriot will
be equivalent to 850% of base pay. The PSP award to be granted to Dr Sarin will be equivalent to 550% of base pay.
Long-term incentives
continued
For more information about
How our performance
measures for 2026 support
the delivery of our strategy,
and How the Remuneration
Committee ensures targets are
stretching, see pages 95 and
96, respectively.
105
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Corporate Governance
Sustainability Statement
Additional Information
Financial Statements
Strategic Report
Directors’ Remuneration Report
Non-Executive Directors’ realised pay for 2025 (single total figure of remuneration)
The table sets out all elements of remuneration receivable by the Non-Executive Directors in respect of the year ended 31 December 2025,
alongside comparative figures for the prior year.
2025
Fees
£’000
2024
Fees
£’000
2025
Other
£’000
2024
Other
£’000
2025
Total
£’000
2024
Total
£’000
Michel Demaré
1
890
800
63
–
953
800
Euan Ashley
188
160
–
–
188
160
Philip Broadley
268
233
–
–
268
233
Birgit Conix
2
135
–
–
–
135
–
Rene Haas
3
120
–
–
–
120
–
Karen Knudsen
4
121
–
–
–
121
–
Diana Layfield
162
135
–
–
162
135
Anna Manz
148
140
–
–
148
140
Sheri McCoy
238
205
–
–
238
205
Tony Mok
145
135
–
–
145
135
Nazneen Rahman
233
200
–
–
233
200
Marcus Wallenberg
168
155
–
–
168
155
Former Non-Executive Directors
Deborah DiSanzo
5
41
140
–
–
41
140
Andreas Rummelt
5
40
135
–
–
40
135
Total
2,897
2,438
63
–
2,960
2,438
1
Michel Demaré single figure includes office costs (invoiced in Swiss franc) of £62,900 for the year ended 31 December 2025.
2
Birgit Conix was appointed with effect from 1 February 2025.
3
Rene Haas was appointed with effect from 1 January 2025.
4
Karen Knudsen was appointed with effect from 11 April 2025.
5
Deborah DiSanzo and Andreas Rummelt retired from the Board with effect from 11 April 2025.
Non-Executive Directors’ fee structure
The Non-Executive Directors’ fees effective from January 2026 are set out in the table below, alongside the fees applicable during 2025.
Fees for the Non-Executive Directors (other than the Chair of the Board) were determined by the Chair of the Board and the Executive
Directors. Changes to the Chair of the Board’s fee were determined by the Remuneration Committee, excluding the Chair of the Board.
No Board member participated in any decisions relating to their own fees.
The Non-Executive Directors’ fees, including the Chair, are typically reviewed annually. In the latest review, the size and complexity of the
AstraZeneca Group was considered, together with the continuing increase in workload, responsibilities, and time commitment for non-
executive directors of global, publicly listed companies, in part driven by changes in the corporate governance and regulatory landscape in
multiple jurisdictions. Independent market data from FTSE 10 companies was also reviewed to ensure that AstraZeneca’s fees do not hinder
the recruitment of Directors of the right experience and calibre for a Group of our scale in a global market.
With effect from January 2026, the Chair’s fee has been increased from £890,000 to £925,600 and the Chair’s office costs reimbursed
by the Company has been increased from £75,000 to £78,000 per annum. Other increases have been made to certain fees as set out
in the table below.
Non-Executive Director fees
2025
£’000
2026
£’000
Chair of the Board
1
890
925.6
Basic Non-Executive Director
120
125
Senior independent Non-Executive Director
50
50
Chair of the Audit Committee
2
55
55
Member of the Audit Committee
27.5
27.5
Chair of the Remuneration Committee
2
50
55
Member of the Remuneration Committee
25
27.5
Chair of the Sustainability Committee
2
45
45
Member of the Sustainability Committee
22.5
22.5
Chair of the Science Committee
2
50
55
Member of the Science Committee
25
27.5
Chair of the Nomination and Governance Committee
–
–
Member of the Nomination and Governance Committee
17.5
17.5
1
The Chair of the Board does not receive any additional fees for chairing, or being a member of a Committee.
2
The Committee Chairs do not receive additional fees for being a member of the Committee.
Non-Executive Directors’ remuneration
Audited
106
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Annual Report & Form 20-F Information 2025
Corporate Governance
Sustainability Statement
Additional Information
Financial Statements
Strategic Report
Directors’ Remuneration Report
Annual Report on Remuneration
continued
Minimum shareholding requirements
The CEO and CFO are each required to build a shareholding to satisfy their respective minimum shareholding requirements (MSR), each
within five years of their dates of appointment or, if the MSR is increased at any time, within five years of that increase. Following approval
of the Remuneration Policy (the Policy) at the 2024 AGM on 11 April 2024, the minimum shareholder requirements for the Executive Directors
were increased to match their variable pay opportunity, being 1,150% of base pay for Mr Soriot (increased from 650%), and 750% of base pay
for Dr Sarin (increased from 450%). The Executive Directors have until 11 April 2029, to meet this requirement.
Shares that count towards the MSR are shares beneficially held by the Executive Director and their connected persons and share awards that
are not subject to further performance conditions. Share awards included are DBP shares in deferral periods, and PSP shares in holding
periods, on a net-of-tax basis. The value is calculated using the closing share price on 31 December 2025.
As at 31 December 2025, Dr Sarin exceeded her increased minimum shareholder requirement and Mr Soriot’s holding was slightly below
the increased MSR, but above the previous MSR of 650%. 50% of Mr Soriot’s 2025 annual bonus will be deferred into shares and 97%
of Mr Soriot’s 2023 PSP will move into a two-year holding period, following completion of the performance period on 31 December 2025.
These shares will count towards Mr Soriot’s MSR in 2026.
A further post-employment shareholding requirement applies to Executive Directors. For two years following cessation of employment,
Executive Directors are required to hold shares to the value of the shareholding requirement that applied at the cessation of their employment;
or, in cases where the individual has not had sufficient time to build up shares to meet their guideline, the actual level of shareholding
at cessation. The post-cessation requirement will be maintained through self-certification, with the Committee keeping this approach
under review.
Position against the 2025 minimum shareholding requirement (MSR) as a percentage of base pay
Beneficially owned
shares and shares in
a holding period
1
Shares in
deferral period
2
Shares subject
to performance
conditions
Value of shares
counted towards
MSR as a % of
base pay
3
Pascal Soriot
192,455
43,152
320,854
1,051%
Aradhana Sarin
120,535
20,860
135,451
1,454%
1
Holding period shares included are those which are not subject to continued employment.
2
Shares in deferral periods which are not subject to continued employment.
3
Holding as at 31 December 2025. Shares subject to deferral and holding periods calculated net of a theoretical 50%
tax rate. Shares subject to performance conditions are not included in the value of shares counted towards the MSR.
Non-Executive Directors are encouraged to build up, over a period of three years, a shareholding in the Company with a value approximately
equivalent to the basic annual fee for a Non-Executive Director (which was increased to £120,000 during 2025) or, in the case of the Chair,
approximately equivalent to his basic annual fee (£890,000 during 2025). The majority of Non-Executive Directors who had served for
a period of three years or more as at 31 December 2025 met this expectation, based on the three-month average closing share price for
the period ended 31 December 2025 (13202 pence).
Directors’ interests as at 31 December 2025
The following table shows the beneficial interests of the Directors (including the interests of their connected persons) in Ordinary Shares
as at 31 December 2025.
Executive Directors
Beneficial interest in
Ordinary Shares as at
31 December 2025
1
Beneficial interest in
Ordinary Shares at
31 December 2024
1
Pascal Soriot
235,607
269,861
Aradhana Sarin
141,395
117,364
Non-Executive Directors
Michel Demaré
10,000
10,000
Euan Ashley
1,545
1,545
Philip Broadley
8,025
8,025
Birgit Conix
2
1,080
–
Deborah DiSanzo
3
1,000
1,000
Rene Haas
2
–
–
Karen Knudsen
2
718
–
Diana Layfield
1,400
1,400
Anna Manz
487
487
Sheri McCoy
1,736
1,736
Tony Mok
3,500
3,500
Nazneen Rahman
720
1,017
Andreas Rummelt
3
27,205
27,205
Marcus Wallenberg
60,028
60,028
1
For the Executive Directors, beneficial interests include shares in holding periods and deferral periods which are not subject to performance measures or continued employment.
Shares in a holding or deferral period are included on a gross basis.
2
Birgit Conix was appointed to the Board on 1 February 2025, Rene Haas was appointed 1 January 2025 and Karen Knudsen was appointed on 11 April 2025.
3
Deborah DiSanzo and Andreas Rummelt retired from the Board on 11 April 2025.
1,150%
1,051%
750%
1,454
%
CEO
CFO
Key:
2025 MSR
Shares counted towards MSR
Directors’ shareholdings
Audited
107
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Corporate Governance
Sustainability Statement
Additional Information
Financial Statements
Strategic Report
Directors’ Remuneration Report
Executive Directors’ share plan interests
The following tables set out the Executive Directors’ interests in Ordinary Shares under the Company’s share plans.
Pascal Soriot
Shares outstanding at
31 December 2025
Share scheme interests
Grant date
Shares
outstanding at
1 January 2025
Grant
price
(pence)
Shares
granted
in year
Shares
released
in year
Shares
lapsed
in year
Shares
subject to
performance
Shares
in deferral/
holding
period
1
Performance
period end
Vesting and
release date
DBP
04/03/2022
17,216
9154
–
17,216
–
n/a
–
n/a
04/03/2025
2,3
04/03/2023
14,448
10821
–
–
–
n/a
14,448
n/a
04/03/2026
04/03/2024
14,081
10081
–
–
–
n/a
14,081
n/a
04/03/2027
04/03/2025
–
11963
14,623
–
–
n/a
14,623
n/a
04/03/2028
4
PSP
06/03/2020
84,725
7376
–
84,725
–
–
–
31/12/2022
06/03/2025
5,6
21/05/2020
8,471
7376
–
8,471
–
–
–
31/12/2022
21/05/2025
7,8
05/03/2021
93,856
6844
–
–
–
–
93,856
31/12/2023
05/03/2026
14/05/2021
17,064
6844
–
–
–
–
17,064
31/12/2023
14/05/2025
04/03/2022
97,066
9154
–
–
(15,531)
–
81,535
31/12/2024
04/03/2027
9
04/03/2023
85,808
10821
–
–
–
85,808
–
31/12/2025
04/03/2028
04/03/2024
95,791
10081
–
–
–
95,791
–
31/12/2026
04/03/2029
13/05/2024
29,474
10081
–
–
–
29,474
–
31/12/2026
13/05/2029
04/03/2025
–
11963
109,781
–
–
109,781
–
31/12/2027
04/03/2030
10
Total
558,000
124,404
110,412
(15,531)
320,854
235,607
1
Shares in deferral/holding period are not subject to performance conditions.
2
Market price on 4 March 2025, the actual date of release, was 12064 pence.
3
An additional 1,129 Ordinary Shares were released as a result of the reinvestment of dividend equivalents accrued during the deferral period.
4
Award granted following deferral of one half of the annual bonus earned in respect of performance during 2024, see page 101 for further detail.
5
Market price on 6 March 2025, the actual date of release, was 12028 pence.
6
An additional 8,679 Ordinary Shares were released as a result of the reinvestment of dividend equivalents accrued during the performance and holding period.
7
An additional 871 Ordinary Shares were released as a result of the reinvestment of dividend equivalents accrued during the performance and holding period.
8
Market price on 21 May 2025, the actual date of release, was 10492 pence.
9
84% of the shares entered the holding period, following assessment of performance over the period to 31 December 2023. The remaining shares lapsed.
10
Details of PSP awards granted during 2025 are shown on page 103.
Aradhana Sarin
Shares outstanding at
31 December 2025
Share scheme interests
Grant
date
Shares
outstanding at
1 January 2025
Grant
price
(pence)
Shares
granted
in year
Shares
released
in year
Shares
lapsed
in year
Shares
subject to
performance
Shares
in deferral/
holding
period
1
Performance
period end
Vesting and
release date
DBP
04/03/2022
3,249
9154
–
3,249
–
n/a
–
n/a
04/03/2025
2,3
04/03/2023
7,403
10821
–
–
–
n/a
7,403
n/a
04/03/2026
04/03/2024
7,214
10081
–
–
–
n/a
7,214
n/a
04/03/2027
04/03/2025
–
11963
6,243
–
–
n/a
6,243
n/a
04/03/2028
4
PSP
13/08/2021
17,084
8209
–
–
–
–
17,084
31/12/2023
13/08/2026
04/03/2022
43,038
9154
–
–
(6,887)
–
36,151
31/12/2024
04/03/2027
5
04/03/2023
38,046
10821
–
–
–
38,046
–
31/12/2025
04/03/2028
04/03/2024
51,911
10081
–
–
–
51,911
–
31/12/2026
04/03/2029
04/03/2025
–
11963
45,494
–
–
45,494
–
31/12/2027
04/03/2030
6
Total
167,945
51,737
3,249
(6,887)
135,451
74,095
1
Shares in deferral/holding period are not subject to performance conditions.
2
An additional 210 Ordinary Shares were released as a result of the reinvestment of dividend equivalents accrued during the deferral period.
3
Market price on 4 March 2025, the actual date of release, was 12064 pence.
4
Award granted following deferral of one half of the annual bonus earned in respect of performance during 2024, see page 101 for further detail.
5
84% of the shares entered the holding period, following assessment of performance over the period to 31 December 2024. The remaining shares lapsed.
6
Details of PSP awards granted during 2025 are shown on page 103.
No Director or senior executive beneficially owns, or has options over, 1% or more of the issued share capital of the Company, nor do they
have different voting rights from other shareholders. None of the Directors has a beneficial interest in the shares of any of the Company’s
subsidiaries. Between 31 December 2025 and 9 February 2026, there was no change in the interests in Ordinary Shares for current Directors
shown in the table above.
Directors’ shareholdings
continued
Audited
108
AstraZeneca
Annual Report & Form 20-F Information 2025
Corporate Governance
Sustainability Statement
Additional Information
Financial Statements
Strategic Report
Directors’ Remuneration Report
Annual Report on Remuneration
continued
Audited
Payments to former Directors
During 2025, no payments were made to former Directors.
Payments for loss of office
During 2025, no payments were made to Directors for loss of office.
Remuneration in the wider context
In our Corporate Governance Report on page 78, we outline how the Board has chosen to engage with AstraZeneca’s workforce, and why
this is critical to being a great place to work and delivering outstanding performance. The Directors believe that the Board as a whole should
continue to take responsibility for gathering the views of the workforce. Consequently, instead of implementing one of the three methods for
workforce engagement prescribed in the 2024 UK Corporate Governance Code, the Board chose to enhance and develop the long-standing
existing channels of engagement to capture the global workforce’s perspectives on a variety of topics, including remuneration.
The Committee engages with employees through site visits, virtual meetings and discussions with high-potential talent, communicating on
remuneration matters where appropriate. Committee members review comprehensive data on reward, workforce trends and culture and
receive regular reports on pay, benefits, incentives, performance management approach and broader talent policies to ensure well-informed
executive pay decisions. Outcomes such as the annual Group scorecard are communicated internally and via the Directors’ Remuneration
Report, with additional materials published on the internal communication platform. Where significant changes are proposed, employee
representative groups provide feedback to assess impact upon the broader workforce.
When reviewing executive remuneration, the Committee considers our global workforce, looking to ensure the total reward offering is
competitive, compelling and aligned to our business performance, promoting a culture where everyone feels valued and included, as outlined
in the table below. People and Sustainability remain one of our three strategic priorities, and our Business Review from page 26 explains
the role that reward plays in developing an inclusive and diverse culture that encourages and rewards innovation, entrepreneurship and
performance. In carrying out its responsibilities and when setting the Policy, the Committee also applies the principles and considers the
provisions of the UK Corporate Governance Code.
Element
Policy features for the wider workforce
Comparison with Executive Director
and Senior Executive Team
Base pay
Our base pay is the basis for a competitive total reward package
for all employees, and we review base pay annually. This review
takes account of country budget, relevant market comparators,
the skills, capabilities, knowledge and experience of each
individual relative to peers within the Company, and individual
contribution. In setting the budget each year, we consider
affordability as well as assessing how employee base pay is
currently positioned relative to inflation, market rates, forecasts
of any further market increases, and turnover.
The base pay of our Executive Directors and the SET forms
the basis of their total remuneration, and we review their base
pay annually.
The primary purpose of the review is to ensure base pay
remains competitive and reflects the contribution each
individual makes to the organisation.
Pensions and benefits
We offer market-aligned wellbeing benefit packages reflecting
market practice in each country in which we operate. Where
appropriate, we offer elements of personal benefit choice to
our employees.
The benefit packages of our Executive Directors and the SET
are broadly aligned with the wider workforce of the country
in which they are employed. Pension allowances for current
UK Executive Directors are in line with the wider UK workforce.
Annual bonus
With the exception of our sales representatives receiving
sales-related incentives, our global workforce participates
in the same annual cash bonus plan as the Executive Directors
and the SET, with the same Group scorecard performance
measures outlined on page 99. Achievement against the
scorecard creates a bonus pool from which all awards are made.
For employees within our commercial organisation, the
country-level share of the global bonus pool also takes
into account country performance against KPIs.
Individual outcomes are based on manager assessment of
contribution against individual objectives and peers. Awards
are based on a 0-200% target range.
The ranges for Executive Directors and the SET align with the
wider workforce at 0-200% of target. Half of any award to an
Executive Director under the plan is subject to deferral into
shares subject to a three-year holding period. One sixth of any
award to the SET under the plan is deferred into shares and
is subject to a three-year holding period.
Long-term
incentives
The PSP is operated with a three-year performance period for
employees at Vice-President and Senior Vice-President level, with
the same performance measures that apply to PSP awards made
to the Executive Directors and the SET (outlined from page 102).
A proportion of our workforce below this level is eligible to be
considered for other LTI awards, such as restricted stock
awards. Thirty-five per cent of our global employee population
are eligible to receive an award under our LTI plans.
PSP awards to Executive Directors and the SET are granted
under the same plan as PSP awards granted to Vice-Presidents
and Senior Vice-Presidents. PSP awards to Executive Directors
and the SET are subject to a two-year holding period following
the three-year performance period.
109
AstraZeneca
Annual Report & Form 20-F Information 2025
Corporate Governance
Sustainability Statement
Additional Information
Financial Statements
Strategic Report
Directors’ Remuneration Report
Change in Director remuneration compared to other employees
In the table below, as per the requirements of the Companies (Directors’ Remuneration Policy and Directors’ Remuneration Report) Regulations
2019, changes to the base pay (or fees), taxable benefits and annual bonus of Directors are compared to employees for the previous financial
year. The regulations require comparison between the remuneration of each Director and that of all employees of the parent company on
a full-time equivalent basis. As AstraZeneca PLC has no direct employees, and in line with our disclosure approach in prior years to changes
in employee remuneration, the selected comparator group is comprised of employees in the UK, US and Sweden who represent approximately
37% of our total employee population. We consider that this group is representative of the Group’s major science, business and enabling units.
These employee populations are also well balanced in terms of seniority and demographics.
Change in 2025
against 2024 (%)
Change in 2024
against 2023 (%)
Change in 2023
against 2022 (%)
Change in 2022
against 2021 (%)
Change in 2021
against 2020 (%)
Base
pay/
fees
Benefits
Annual
bonus
Base
pay/
fees
Benefits
Annual
bonus
Base
pay/
fees
Benefits
Annual
bonus
Base
pay/
fees
Benefits
Annual
bonus
Base
pay/
fees
Benefits
Annual
bonus
Executive Directors
Pascal Soriot
4.0
3.6
21.7
4.0
-0.9
23.2
4.5
3.1
-9.2
3.0
10.5
-0.8
3.0
1.1
35.9
Aradhana Sarin
4.0
-23.0
7.3
4.0
-70.4
2.7
4.5
-71.6
-9.2
147.2
2,753.2
169.3
–
–
–
Non-Executive Directors
Michel Demaré
1
11.2
100.0
–
37.0
–
–
268.9
–
–
7.0
–
–
18.7
–
–
Euan Ashley
17.2
–
–
34.7
–
–
8.0
–
–
6.8
–
–
300.0
–
–
Philip Broadley
14.8
–
–
16.5
–
–
0.0
–
–
15.6
–
–
16.9
–
–
Birgit Conix
2
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
Deborah DiSanzo
3
-70.7
–
–
16.7
–
–
0.0
–
–
11.1
–
–
0.0
–
–
Rene Haas
4
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
Karen Knudsen
5
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
Diana Layfield
20.0
–
–
22.7
–
–
0.0
–
–
19.9
–
–
525.6
–
–
Anna Manz
6
5.4
–
–
250.0
–
–
–
–
–
–
–
–
–
–
–
Sheri McCoy
15.9
–
–
17.1
–
–
11.7
–
–
23.6
–
–
3.0
–
–
Tony Mok
7.4
–
–
22.7
–
–
0.0
–
–
6.8
–
–
0.0
–
–
Nazneen Rahman
16.2
–
–
25.3
–
–
3.0
–
–
18.2
–
–
11.0
–
–
Andreas Rummelt
3
-70.4
–
–
22.7
–
–
0.0
–
–
172.2
–
–
–
–
–
Marcus Wallenberg
8.4
–
–
24.0
–
–
0.0
–
–
17.1
–
–
3.6
–
–
Employees
5.7
5.7
0.4
5.8
5.8
7.7
7.0
7.0
3.2
6.0
6.0
19.3
4.9
4.9
44.4
1
Michel Demaré was appointed Chair of the Board on 27 April 2023. Benefits for Michel Demaré are office costs introduced in January 2025.
2
Birgit Conix was appointed on 1 February 2025.
3
Deborah DiSanzo and Andreas Rummelt retired from the Board on 11 April 2025.
4
Rene Haas was appointed on 1 January 2025.
5
Karen Knudsen was appointed on 11 April 2025.
6
Anna Manz was appointed on 1 September 2023.
CEO and employee pay ratios
The table below sets out the ratios of the CEO’s realised pay to the equivalent pay for the lower quartile, median and upper quartile of UK
employees (calculated on a full-time equivalent basis). The ratios have been calculated in accordance with the Companies
(Miscellaneous
Reporting) Regulations 2018 (the Regulations).
Year
Method
25th percentile pay ratio
50th percentile pay ratio
75th percentile pay ratio
2025
Option A
261:1
176:1
118:1
2024
Option A
231:1
153:1
102:1
2023
Option A
271:1
182:1
121:1
2022
Option A
230:1
159:1
107:1
2021
Option A
240:1
162:1
106:1
2020
Option A
284:1
197:1
130:1
2019
Option A
280:1
190:1
123:1
2018
Option A
230:1
160:1
103:1
110
AstraZeneca
Annual Report & Form 20-F Information 2025
Corporate Governance
Sustainability Statement
Additional Information
Financial Statements
Strategic Report
Directors’ Remuneration Report
Annual Report on Remuneration
continued
The comparison with UK employees is specified by the Regulations. This group represents approximately 10% of our total employee population.
The Regulations provide flexibility to adopt one of three methods of calculation; we continue to use Option A which is a calculation based
on all UK employees on a full-time equivalent basis as we consider this to be the most appropriate method of comparison and in line with
the calculation of the CEO’s realised pay (shown on page 97 for 2025). The ratios are based on total pay, which includes base pay, benefits,
bonus and LTI awards with all elements adjusted on a full-time equivalent basis if required. Our calculations are in line with the single figure
methodology for UK employees where possible, with quartile data determined as at 31 December 2025. Calculations for UK employees are
based on actual base pay and benefits data for the year, with estimates only used for annual bonus outcomes and LTI dividend equivalents.
These estimates are based on the 2025 bonus budget and projected payouts, and anticipated dividends on LTI awards, respectively.
No elements of pay have been excluded from the calculation, which has been determined following the approach of previous years.
CEO
UK employees
25th percentile
50th percentile
75th percentile
Pay data (£’000)
1
Base pay
Total pay
Base pay
Total pay
Base pay
Total pay
Base pay
Total pay
2025
1,545
17,696
50
68
73
100
93
150
2024
1,486
14,728
50
64
70
96
91
144
2023
1,429
16,853
46
62
65
92
88
139
2022
1,367
15,323
48
67
67
96
88
143
2021
1,327
13,858
43
58
61
86
86
130
2020
1,289
15,447
41
54
60
78
82
119
2019
1,289
14,330
38
51
53
75
71
117
2018
1,251
11,356
36
49
50
71
70
110
1
The prior years’ figures have not been restated for subsequent share price changes (as shown in the CEO’s realised pay for 2025 table on page 97).
The pay ratios at each quartile were higher in 2025 when compared to last year, due to realised bonus and LTI awards for the CEO in 2025.
Given the Committee’s focus on ensuring CEO pay is performance-driven (and as demonstrated again this year), the majority of the single
figure is comprised of variable pay and therefore may vary significantly year-on-year due to annual bonus and PSP outcomes, as well as
share price movements. The Committee therefore also considers the CEO pay ratio without the LTI impact. When excluding LTI, the pay ratio
of the CEO compared to the median UK employee is 63:1.
2018
2019
2020
2021
2022
2023
2024
2025
50th percentile ratio excluding LTI
51:1
51:1
53:1
57:1
51:1
52:1
57:1
63:1
The Committee remains mindful of the debate on executive pay and seeks to ensure that when determining the remuneration of the CEO
it finds the right balance when rewarding performance in a highly competitive global executive talent market. It believes the median ratio
is consistent with the pay and progression policies for UK employees, which ensures our total reward offering is competitive and compelling,
and aligned to individual and business performance as set out on page 109.
Relative importance of spend on pay
The table below shows the remuneration paid to all employees in the Group, including the Executive Directors, and expenditure on shareholder
distributions through dividends. The figures have been calculated in accordance with the Group Accounting Policies and drawn from either
the Group’s Consolidated Statement of Comprehensive Income on page 125, or its Consolidated Statement of Cash Flows on page 128.
Further information on the Group Accounting Policies can be found from page 129.
2025
$m
2024
$m
Difference
in spend
between
years
$m
Difference
in spend
between
years
%
Total employee remuneration
14,548
13,709
839
6
Distributions to shareholders: dividends paid
4,971
4,629
342
7
Total shareholder return
The graph on page 112 compares the TSR performance of the Company over the past 10 years with the TSR of the FTSE 100 Index and our
global pharmaceutical peers. This graph is re-based to 100 at the start of the relevant period. These indices represent appropriate reference
points for AstraZeneca reflecting our primary listing as a constituent of the FTSE 100 and a comparison against our global pharmaceutical
peers. The pharmaceutical comparator group is also used to assess relative TSR performance for PSP awards to be granted in 2026 and
consists of AbbVie, Amgen, Astellas, BMS, Daiichi Sankyo, Eli Lilly, Gilead, GSK, Johnson & Johnson, Merck KGaA, Moderna, MSD, Novartis,
Novo Nordisk, Pfizer, Roche, Sanofi and Takeda. CEO remuneration over the same 10-year period is shown after the TSR graph.
111
AstraZeneca
Annual Report & Form 20-F Information 2025
Corporate Governance
Sustainability Statement
Additional Information
Financial Statements
Strategic Report
Directors’ Remuneration Report
AstraZeneca
Global pharmaceutical peers average
FTSE 100
Dec
15
Dec
16
Dec
17
Dec
18
Dec
19
Dec
20
Dec
21
Dec
22
Dec
23
Dec
24
Dec
25
TSR over a 10-year period
0
100
200
300
400
CEO total remuneration table
Year
CEO
CEO
realised pay
£’000
Annual bonus
payout against
maximum
opportunity
%
LTI vesting
rates against
maximum
opportunity
%
2025
Pascal Soriot
17,696
1
92
97
2024
Pascal Soriot
14,728
2
78.5
84
2023
Pascal Soriot
17,371
79.5
88
2022
Pascal Soriot
15,085
92
97
2021
Pascal Soriot
15,740
95
95
2020
Pascal Soriot
15,934
90
99
2019
Pascal Soriot
15,307
83
90
2018
Pascal Soriot
12,868
83
79
2017
Pascal Soriot
10,429
87
81
2016
Pascal Soriot
14,342
3
54
95
1
The 2025 realised pay is shown on page 97.
2
This figure has been revised using the average closing share price over the three-month period to 31 December 2025, as explained on page 102.
3
This figure includes shares awarded to Mr Soriot in 2013 under the AZIP to compensate him for LTI awards from previous employment forfeited on his recruitment
as the Company’s CEO.
Governance
Committee membership
The Committee members as at 31 December 2025 were Sheri McCoy (Chair of the Committee), Philip Broadley, Michel Demaré, Diana
Layfield and Nazneen Rahman. Diana Layfield was appointed to the Committee with effect from 1 May 2025. A Deputy Company Secretary
acts as secretary to the Committee. The Committee met six times in 2025 and members’ attendance records are set out on page 67.
During the year, the Committee was materially assisted, except in relation to their own remuneration, by the CEO; the CFO; the SVP, Finance,
Group Controller and Head of Global Finance Services; the SVP, Group Planning and Finance Business Partnering; the SVP, Global Portfolio/
Project Management, Strategic Planning, BDO and Deal Finance; the VP, Global Sustainability and SHE; the Chief Human Resources Officer,
Chief Compliance Officer and General Counsel; the SVP, Reward; the Senior Director Executive Reward; the Company Secretary; a Deputy
Company Secretary; and the Non-Executive Directors forming the Science and Sustainability Committees. The assistance provided by these
individuals fell within the ordinary course of their employment and/or services with AstraZeneca and they were not paid separately for it.
The Committee’s independent adviser attended all Committee meetings.
Independent adviser to the Committee
The Committee reappointed Willis Towers Watson (WTW) as its independent adviser. WTW were first appointed in September 2018,
following a tender process undertaken in 2018. The tender process involved submission of written proposals, followed by shortlisted
candidates being interviewed by both Committee members and members of the Company’s management. WTW’s service to the Committee
during 2025 was provided on a time spent basis at a cost to the Company of £252,322, excluding VAT. During 2025, WTW also provided
pensions advice and administration, and advice and support to management including market data to assist in the annual employee pay
review, global pay survey data and employee benefits review. WTW have no other connection with the Company or individual Directors.
The Committee reviewed the potential for conflicts of interest related to WTW and judged that there were no conflicts. WTW is a member
of the Remuneration Consultants Group, which is responsible for the stewardship and development of the voluntary code of conduct in
relation to executive remuneration consulting in the UK. The principles on which the code is based are transparency, integrity, objectivity,
competence, due care and confidentiality. WTW adheres to the code.
Remuneration in the wider context
continued
112
AstraZeneca
Annual Report & Form 20-F Information 2025
Corporate Governance
Sustainability Statement
Additional Information
Financial Statements
Strategic Report
Directors’ Remuneration Report
Annual Report on Remuneration
continued
Malus and clawback
The Committee regularly reviews the Company’s approach to malus and clawback and market practice in this area, and our Global Standard
on Malus and Clawback sets out the trigger events and the time periods these provisions may apply to. As a condition of annual bonus and
PSP awards, the Committee seeks active acceptance of the malus and clawback terms applicable each year before any payment or grant
is made to an individual. This allows the Committee to:
•
Reduce the amount of bonus or PSP payable, or clawback some or all of any award in the circumstances and periods as set out within
our Global Standard on Malus and Clawback.
•
Cancel bonus eligibility.
•
Prevent vesting of the PSP and/or DBP awards by holding the shares in AstraZeneca’s LTI nominee platform to prevent transactions.
The triggers whereby the Committee has the discretion to apply malus and/or clawback include:
•
Serious misconduct;
•
Material misstatement or restatement of the audited results of the Group; or
•
AstraZeneca suffering:
–
significant reputational damage;
–
a material adverse effect on its financial position; or
–
a material adverse effect on its business opportunities and prospects for sustained performance or profitability.
The Committee selected the malus and clawback periods to run for two years from a particular date, typically the date of payment, grant,
or vesting as appropriate considering the arrangement under which the remuneration was due and the type of eligible employees
participating in that arrangement. The Committee confirms that malus and clawback provisions were not exercised during the year.
Shareholder voting at the AGM
At the Company’s AGM on 11 April 2025, shareholders voted in favour of a resolution to approve the Annual Statement of the Chair of the
Remuneration Committee and the Annual Report on Remuneration for the year ended 31 December 2024. The Directors’ Remuneration
Policy was approved by shareholders at the Company’s AGM on 11 April 2024. The Policy can be found on the Company’s website,
www.astrazeneca.com/annualreport2025.
Resolution
Votes for
% for
Votes against
% against
Total votes cast
% of issued
share
capital voted
Withheld
votes
Ordinary Resolution to approve the Annual Statement
of the Chair of the Remuneration Committee and the
Annual Report on Remuneration for the year ended
31 December 2024 (2025 AGM)
1,152,784,239
96.4
43,097,131
3.6
1,195,881,370
77.12
2,041,421
Ordinary Resolution to approve the Directors’ Remuneration
Policy (2024 AGM)
761,702,826
64.43
420,514,520
35.57
1,182,217,346
76.26
34,645,873
Directors’ service contracts and letters of appointment
The notice periods and unexpired terms of Executive Directors’ service contracts at 31 December 2025 are shown in the table below.
Executive Director
Effective date of service contract
Notice period
Pascal Soriot
15 December 2016
12 months
Aradhana Sarin
1 August 2021
12 months
None of the Non-Executive Directors have a service contract but each has a letter of appointment. In accordance with the Company’s
Articles of Association, following their appointment, all Directors must retire at each AGM and may present themselves for re-election. All of
the Non-Executive Directors, including the Chair of the Board, may terminate their appointment at any time, on three months’ notice. None
of the Non-Executive Directors has any provision in their letters of appointment giving them a right to compensation upon early termination
of appointment.
Basis of preparation of this Directors’ Remuneration Report
This Directors’ Remuneration Report has been prepared in accordance with the Large and Medium-sized Companies and Groups (Accounts
and Reports) (Amendment) Regulations 2013
(as amended) (the 2013 Regulations). A resolution to receive and approve the Directors’
Remuneration Report will be proposed at the AGM on 9 April 2026.
On behalf of the Board
M S Bowden
Company Secretary
10 February 2026
113
AstraZeneca
Annual Report & Form 20-F Information 2025
Corporate Governance
Sustainability Statement
Additional Information
Financial Statements
Strategic Report
Directors’ Remuneration Report
Financial
Statements
Contents
Preparation of the Financial Statements
and Directors’ Responsibilities
115
Directors’ Annual Report on Internal
Controls over Financial Reporting
115
Independent Auditors’ Report
116
Consolidated Statements
125
Group Accounting Policies
129
Notes to the Group Financial Statements
137
Group Subsidiaries and Holdings
192
Company Statements
197
Company Accounting Policies
199
Notes to the Company Financial Statements
201
Corporate Governance
Sustainability Statement
Additional Information
Financial Statements
Strategic Report
114
AstraZeneca
Annual Report & Form 20-F Information 2025
Financial Statements
•
Select suitable accounting policies
and then apply them consistently.
•
Make judgements and estimates
that are reasonable and prudent.
•
For the Group Financial Statements,
state whether they have been prepared
in accordance with UK-adopted
international accounting standards.
•
For the Parent Company Financial
Statements, state whether FRS 101 has
been followed, subject to any material
departures disclosed and explained in
the Parent Company Financial Statements.
•
Prepare the Financial Statements on
a going concern basis unless it is
inappropriate to presume that the
Group and the Parent Company will
continue in business.
The Directors are responsible for keeping
adequate accounting records that are
sufficient to show and explain the Parent
Company’s transactions and disclose with
reasonable accuracy at any time the financial
position of the Parent Company. This enables
them to ensure that the Financial Statements
comply with the Companies Act 2006.
They have general responsibility for taking
such steps as are reasonably open to them
to safeguard the assets of the Group and
to prevent and detect fraud and other
irregularities.
Under applicable law and regulations, the
Directors are also responsible for preparing
a Directors’ Report, Strategic Report,
Directors’ Remuneration Report, Corporate
The following report is provided by the
Directors in connection with the Company’s
internal control over financial reporting:
•
The Directors are responsible for
establishing and maintaining adequate
internal control over financial reporting.
Internal control over financial reporting is
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.
•
The Directors conducted an evaluation
of the effectiveness of internal control
over financial reporting based on the
Committee of Sponsoring Organizations
(COSO) 2013 framework.
The Directors are responsible for preparing
this Annual Report and Form 20-F Information
and the Group and Parent Company Financial
Statements in accordance with applicable
law and regulations.
Company law requires the Directors to prepare
Financial Statements for each financial year.
Under that law, the Directors have prepared
the Group Financial Statements 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
and Parent Company Financial Statements in
accordance with United Kingdom Generally
Accepted Accounting Practice (United
Kingdom Accounting Standards, comprising
FRS 101 ‘Reduced Disclosure Framework’,
and applicable law). In preparing the Group
Financial Statements, the Directors have
also elected to comply with IFRS Accounting
Standards as issued by the International
Accounting Standards Board (IASB) and
International Accounting Standards as
adopted by the European Union.
Under company law, the Directors must not
approve the Financial Statements unless
they are satisfied that they give a true and
fair view of the state of affairs of the Group
and Parent Company and of their profit or
loss for that period. In preparing each of
the Group and Parent Company Financial
Statements, the Directors are required to:
As a consequence of our US listing, we are
required to comply with certain US laws
and regulations. Section 404 of the
Sarbanes-Oxley Act is applicable to
AstraZeneca as a foreign private issuer and
requires us to annually assess and make
public statements about the effectiveness
of our internal control over financial reporting.
Due to its inherent limitations, internal control
over financial reporting may not prevent
or detect misstatements. 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.
Governance Report and Audit Committee
Report that comply with that law and those
regulations.
The Directors are responsible for the
maintenance and integrity of the corporate
and financial information included on our
website. Legislation in the UK governing
the preparation and dissemination of
Financial Statements may differ from
legislation in other jurisdictions.
Directors’ responsibility statement
pursuant to DTR 4
The Directors confirm that to the best
of our knowledge:
•
The Financial Statements, prepared
in accordance with the applicable set
of accounting standards, give a true and
fair view of the assets, liabilities, financial
position and profit or loss of the Company
and the undertakings included in the
consolidation taken as a whole.
•
The Directors’ Report includes a fair review
of the development and performance
of the business and the position of the
Company and the undertakings included
in the consolidation taken as a whole,
together with a description of the principal
risks and uncertainties that they face.
On behalf of the Board of Directors
on 10 February 2026.
Pascal Soriot
Director
•
The Directors concluded that our internal
control over financial reporting was
effective as at 31 December 2025.
•
PricewaterhouseCoopers LLP, the
independent registered public accounting
firm that audited our financial statements
as at 31 December 2025, has audited
the effectiveness of internal control over
financial reporting as at 31 December
2025 and has issued an unqualified
report thereon.
•
During the period covered by this
Annual Report, there were no changes
in internal control over financial reporting
that have materially affected or are
reasonably likely to materially affect
the effectiveness of our internal control
over financial reporting.
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Corporate Governance
Sustainability Statement
Additional Information
Financial Statements
Strategic Report
Financial Statements
Preparation of the Financial Statements and Directors’ Responsibilities
Directors’ Annual Report on Internal Controls over Financial Reporting
Separate opinion in relation to IFRS
Accounting Standards as issued
by the IASB
As explained in the Group Accounting
Policies to the financial statements, the
Group, in addition to applying UK-adopted
international accounting standards, has also
applied IFRS Accounting Standards as
issued by the International Accounting
Standards Board (“IASB”).
In our opinion, the Group financial
statements have been properly prepared
in accordance with IFRS Accounting
Standards as issued by the IASB.
Basis for opinion
We conducted our audit in accordance
with International Standards on Auditing
(UK)
(“ISAs
(UK)”) and applicable law.
Our responsibilities under ISAs (UK)
are further described in the Auditors’
responsibilities for the audit of the financial
statements section of our report. We believe
that the audit evidence we have obtained
is sufficient and appropriate to provide
a basis for our opinion.
Independence
We remained independent of the Group in
accordance with the ethical requirements
that are relevant to our audit of the financial
statements in the UK, which includes the
FRC’s Ethical Standard, as applicable to
listed public interest entities, and we have
fulfilled our other ethical responsibilities in
accordance with these requirements.
To the best of our knowledge and belief, we
declare that non-audit services prohibited by
the FRC’s Ethical Standard were not provided.
Other than those disclosed in Note 31, we
have provided no non-audit services to the
Company or its controlled undertakings in
the period under audit.
Our audit approach
Overview
Audit scope
•
Our audit included full scope audit, audit
of specific significant line item(s) or
specified procedures at each of the
Group’s 22 in-scope components.
•
Taken together, the components at which
audit work was performed accounted for
71% of the Group’s revenue. Our scoping
provided sufficient coverage over each
significant financial statement line item
(“FSLI”) of the Group financial statements
and provided us with the evidence we
needed for our opinion on the Group
financial statements taken as a whole.
Report on the audit of the
financial statements
Opinion
In our opinion:
•
AstraZeneca PLC’s Group financial
statements and Company financial
statements (the “financial statements”)
give a true and fair view of the state of the
Group’s and of the Company’s affairs as
at 31 December 2025 and of the Group’s
profit and the Group’s cash flows for the
year then ended;
•
the Group financial statements have been
properly prepared in accordance with
UK-adopted international accounting
standards as applied in accordance with
the provisions of the Companies Act 2006;
•
the Company financial statements have
been properly prepared in accordance
with United Kingdom Generally Accepted
Accounting Practice (United Kingdom
Accounting Standards, including FRS 101
“Reduced Disclosure Framework”, and
applicable law); and
•
the financial statements have been
prepared in accordance with the
requirements of the Companies Act 2006.
We have audited the financial statements,
included within the Annual Report and Form
20-F Information 2025 (the “Annual Report”),
which comprise: the Consolidated Statement
of Financial Position and the Company
Balance Sheet as at 31 December 2025; the
Consolidated Statement of Comprehensive
Income, the Consolidated Statement of Cash
Flows, and the Consolidated and Company
Statements of Changes in Equity for the year
then ended; the Group and Company
Accounting Policies; and the Notes to the
Group and Company Financial Statements.
Our opinion is consistent with our reporting
to the Audit Committee.
Separate opinion in relation to International
Accounting Standards as adopted by the
European Union
As explained in the Group Accounting
Policies to the financial statements, the
Group, in addition to applying UK-adopted
international accounting standards, has also
applied International Accounting Standards
as adopted by the European Union.
In our opinion, the Group financial statements
have been properly prepared in accordance
with International Accounting Standards as
adopted by the European Union.
Key audit matters
•
Recognition and measurement of accruals
for Managed Care, Medicaid and
Medicare Part D rebates on US Product
Sales (excluding Rare Diseases)
(Group)
•
Impairment assessment of the product,
marketing and distribution rights and
other intangibles (Group)
•
Recognition and measurement of legal
provisions and disclosure of contingent
liabilities (Group)
•
Valuation of defined benefit obligations
in the United Kingdom (“UK”)
(Group)
•
Distributable reserves (Company)
Materiality
•
Overall Group materiality: $620m (2024
:
$500m) based on approximately 5%
of profit before tax after adding back
intangible asset impairment charges
(Note 11), fair value movements and
discount unwind on contingent
consideration (Note 20) and the discount
unwind on certain other payables arising
from intangible asset acquisitions (Note 4).
•
Overall Company materiality: $200m
(2024: $155m) based on 0.4% of net
assets as constrained by the allocation
of overall Group materiality.
•
Performance materiality: $465m
(2024: $375m) (Group
) and $150m
(2024: $116.25m) (Company).
The scope of our audit
As part of designing our audit, we determined
materiality and assessed the risks of material
misstatement in the financial statements.
Key audit matters
Key audit matters are those matters that, in
the auditors’ professional judgement, were
of most significance in the audit of the
financial statements of the current period
and include the most significant assessed
risks of material misstatement (whether or
not due to fraud) identified by the auditors,
including those which had the greatest effect
on: the overall audit strategy; the allocation
of resources in the audit; and directing the
efforts of the engagement team. These
matters, and any comments we make on
the results of our procedures thereon, were
addressed in the context of our audit of the
financial statements as a whole, and in
forming our opinion thereon, and we do not
provide a separate opinion on these matters.
This is not a complete list of all risks
identified by our audit.
Recognition, measurement and disclosure
of tax liabilities for uncertain tax treatments,
which was a key audit matter last year, is no
longer included because of reduced risk
following settlements with tax authorities
during the year. Otherwise, the key audit
matters below are consistent with last year.
Corporate Governance
Sustainability Statement
Financial Statements
Strategic Report
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Additional Information
Financial Statements
Independent auditors’ report to the members of AstraZeneca PLC
Recognition and measurement of accruals for Managed Care, Medicaid and Medicare Part D rebates on US Product Sales
(excluding Rare Diseases) (Group)
Impacted FSLIs
2025
2024
US Rebates, chargebacks, returns and other revenue accruals liability (excluding Rare Diseases) (which principally
consists of rebates related to Managed Care, Medicaid and Medicare Part D)
$5,605m
$4,738m
In the US the Group recognises revenue on Product Sales under various
commercial and government mandated contracts and reimbursement
arrangements that include rebates, of which the most significant are
Managed Care, Medicaid and Medicare Part D relating to US Product Sales.
Rebates provided to customers under these arrangements are accounted for
as variable consideration and recognised as a reduction to revenue, for which
unsettled amounts are accrued. At the time Product Sales are invoiced, rebates
and deductions that the Group expects to pay, are estimated. There is
significant management estimation in determining the accruals in the US.
Assumptions used to estimate the rebates are monitored and adjusted regularly
in light of contractual and legal obligations, historical trends, past experience
and projected market conditions.
Discussions with the Audit Committee
How our audit addressed the Key Audit Matter
Our discussions with and reporting to the Audit Committee included:
•
Our approach to the audit of rebates including details of planned
substantive procedures and the extent of our controls reliance;
•
For the recorded accruals, whether the Group’s estimate is comparable
to our independently developed estimates; and
•
Our views of management’s assessment over the accuracy of the accruals.
Relevant references in the Annual Report
Refer to the Audit Committee Report, Group Accounting Policies and Notes 2
and 20 in the Group financial statements.
We evaluated the design and tested the operating effectiveness of controls
relating to the recognition and measurement of the accruals for the Managed
Care, Medicaid and Medicare Part D, including controls over significant
assumptions. We determined that we could rely on these controls for the
purposes of our audit. We:
i)
tested completeness and accuracy of data provided by management;
ii)
developed an independent estimate of the Managed Care, Medicaid and
Medicare Part D accruals using 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;
iii) compared our independent estimates to the accruals recorded
by management;
iv)
evaluated the effect of any adjustments to prior years’ accruals in the
current year’s results;
v)
tested actual payments made and rebate claims processed by the Group,
and evaluated those claims for consistency with the contractual and
mandated terms of the Group’s arrangements; and
vi) used professionals with specialised skill and knowledge to assist
in assessing the compliance of the Group’s Medicaid rebate policies
against the regulatory requirements.
We evaluated the appropriateness of the disclosures in Notes 2 and 20
of the Group financial statements.
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Sustainability Statement
Additional Information
Financial Statements
Strategic Report
Financial Statements | Independent auditors’ report to the members of AstraZeneca PLC
Impairment assessment of the product, marketing and distribution rights and other intangibles (Group)
Impacted FSLIs
2025
2024
Product, marketing and distribution rights and other intangibles (hereafter referred to as the intangible assets)
$36,752m
$36,505m
Net impairment charges
$230m
$1,572m
The recoverability of the carrying value of cash generating units (to which
the intangible assets belong) depends on future cash flows and/or the
outcome of research and development (
“
R&D
”
) activities including decisions
by the Group to terminate development. The determination of the
recoverable amounts include significant estimates, which are highly sensitive
and depend upon key assumptions including the outcome of R&D 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. Changes in
these assumptions could have an impact on the recoverable amount of the
Group’s intangible assets.
During 2025, $230m (2024: $1,572m) of net impairment charges were
recorded (of which $218m
(2024: $1,569m) was recorded relating to
Product, marketing and distribution rights and $12m (2024: $3m) relating
to other intangibles).
Discussions with the Audit Committee
How our audit addressed the Key Audit Matter
Our discussions with and reporting to the Audit Committee included:
•
Our approach to audit the impairment assessment of the carrying value
of cash generating units (to which the intangible assets belong) including
details of planned substantive procedures and the extent of our controls
reliance;
•
The methodologies and significant assumptions used to determine
the recoverable values of the intangible assets; and
•
The evaluation of the reasonableness of the probability of technical
and regulatory success with the assistance of our professionals with
specialised skill and knowledge.
Relevant references in the Annual Report
Refer to the Audit Committee Report, Group Accounting Policies and Note 11 in
the Group financial statements.
We evaluated the design and tested the operating effectiveness of controls
relating to management’s intangible asset impairment assessment, controls
over the identification of triggering events and the valuation of the
recoverable amounts of the intangible assets, including controls over
the significant assumptions. We determined that we could rely on these
controls for the purposes of our audit.
For those intangible assets in the scope of our audit we: i) tested
management’s process for identifying indicators of impairment and
the process for developing the recoverable amounts; ii) evaluated the
appropriateness of the methodology used by management to estimate
the recoverable amounts; iii) tested the completeness and accuracy of
the underlying data used in the models; and iv) evaluated the significant
assumptions used by management related to the probability of technical
and regulatory success, with the assistance of professionals with
specialised skill and knowledge; market volume, share and pricing (to
derive peak year sales); and sales erosion curves following patent expiry.
In evaluating management’s significant assumptions we: i) compared
significant assumptions to external market and industry data, and
benchmarks; ii) performed comparisons of current and past long term
forecasts; and iii) performed comparisons of management’s probability
of technical and regulatory success benchmarks to actual trial and
regulatory success rates for the past three years.
We evaluated the appropriateness of the disclosures in Note 11 of the
Group financial statements.
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Sustainability Statement
Additional Information
Financial Statements
Strategic Report
Financial Statements
Independent auditors’ report to the members of AstraZeneca PLC
continued
Recognition and measurement of legal provisions and disclosure of contingent liabilities (Group)
Impacted FSLIs
2025
2024
Provisions in respect of legal claims and settlements (together, legal provisions)
$376m
$859m
Financial statements disclosure: Contingent liabilities disclosure in respect of legal proceedings
Note 30
Note 30
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. Provisions are recognised
when there is 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 reasonable estimate can be made of the
amount of the obligation. 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.
Discussions with the Audit Committee
How our audit addressed the Key Audit Matter
Our discussions with and reporting to the Audit Committee included:
•
Our approach to audit the assessment of the ongoing litigations and
claims including details of planned substantive procedures and the
extent of our controls reliance;
•
The assessment of management’s judgement in the outcome
of the Group’s legal matters;
•
Consideration of any potential impacts on the financial statements
in respect of the China personal information infringement, illegal trade
and medical insurance fraud matters, as disclosed in Note 30; and
•
Our conclusions on the appropriateness of the in-year movements
in the legal provisions.
Relevant references in the Annual Report
Refer to the Audit Committee Report, Group Accounting Policies, Notes 21 and
30 in the Group financial statements.
We evaluated the design and tested the operating 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, and related financial statement
disclosures. We determined that we could rely on these controls for the
purposes of our audit.
We obtained and evaluated letters of audit enquiry with the Group’s internal
and external legal counsel for significant litigation. We tested the
completeness of management’s assessment of both the identification of
legal proceedings and possible outcomes of each significant legal matter.
We evaluated the reasonableness of management’s assessment regarding
whether an adverse outcome is probable and estimated reliably. We
inspected certain external legal documents. We evaluated the Group’s
legal provisions within Note 21 and management’s judgement regarding
the proceedings set out as contingent liabilities within Note 30. Where
appropriate, we considered the scope, preliminary findings and conclusions
of investigations with the assistance of professionals with specialised skill
and knowledge.
We evaluated the appropriateness of the disclosures in Notes 21 and 30
of the Group financial statements.
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Sustainability Statement
Additional Information
Financial Statements
Strategic Report
Financial Statements | Independent auditors’ report to the members of AstraZeneca PLC
Valuation of defined benefit obligations in the United Kingdom (“UK”) (Group)
Impacted FSLIs
2025
2024
Defined benefit obligations in the UK
$4,767m
$4,592m
The Group’s most significant scheme is in the UK. The valuation of pension
plan obligations requires significant estimation in determining appropriate
assumptions such as the mortality, discount, and inflation rates.
Movements in these assumptions can have a material impact on the
determination of the defined benefit obligations. Management engaged with
qualified independent actuaries to assist in determining these assumptions.
Discussions with the Audit Committee
How our audit addressed the Key Audit Matter
Our discussions with and reporting to the Audit Committee included:
•
Our approach to the audit of the valuation of the defined benefit
obligations in the UK including details of planned substantive
procedures and the extent of our controls reliance; and
•
For the significant assumptions used by management, whether and
where the Group’s assumptions lay within our reasonable range.
Relevant references in the Annual Report
Refer to the Audit Committee Report, Group Accounting Policies and Note 22
in the Group financial statements.
We evaluated the design and tested the operating effectiveness of controls
relating to the valuation of the defined benefit obligations, including controls
over the significant assumptions. We determined that we could rely on
these controls for the purposes of our audit.
We tested completeness and accuracy of the data provided by
management. We involved professionals with specialised skill and
knowledge to assist in evaluating the reasonableness of management’s
estimate by i) developing an independent estimate of the defined benefit
obligations for the UK; and ii) comparing the independent estimate to
management’s estimate. Developing the independent estimate involved
independently determining mortality, inflation and discount rate
assumptions by evaluating the specifics of the plan and, where applicable,
considering national information, and consistency with external market
and industry data.
We evaluated the appropriateness of the disclosures in Note 22 of the
Group financial statements.
Distributable reserves (Company)
Impacted FSLIs
2025
2024
The Company’s Profit and loss account
$14,461m
$13,495m
The directors review and disclose the level of distributable reserves of the
Company annually and aim to maintain distributable reserves that provide
adequate cover for dividend payments. At 31 December 2025, all of the
Profit and loss account reserve of $14,461m (31 December 2024: the
overwhelming majority of $13,495m) was available for distribution, subject
to filing the Company financial statements with Companies House.
There is judgement when determining the profits available for distribution
by reference to guidance on realised and distributable profits in accordance
with Companies Act 2006 issued by the Institute of Chartered Accountants
in England and Wales and the Institute of Chartered Accountants of
Scotland in April 2017. The profits of the Company have been received
in the form of receivables due from subsidiaries. The availability of
distributable reserves in the Company is dependent on those receivables
meeting the definition of qualifying consideration within the guidance,
and in particular on the ability of subsidiaries to settle those receivables
within a reasonable period of time.
Discussions with the Audit Committee
How our audit addressed the Key Audit Matter
Our discussions with and reporting to the Audit Committee included:
•
Our approach to audit the assessment of the distributable reserves in the
Company including involvement of our professionals with specialised skill
and knowledge; and
•
Evaluation of the appropriateness of management’s judgements with the
assistance of our professionals with specialised skill and knowledge.
Relevant references in the Annual Report
Refer to the Company Statement of Changes in Equity in the Company financial
statements.
We obtained and audited the analysis of distributable reserves, which
included testing the completeness and accuracy of the underlying data
used in the distributable reserve determination.
We involved our professionals with specialised skill and knowledge to
assess whether judgements made by management were appropriate
and the analysis was aligned with the relevant technical guidance on
the determination of realised profits under the Companies Act 2006. In
determining whether the Profit and loss account reserve is distributable
we evaluated whether there is qualifying consideration in a form of
receivables due from subsidiaries, and in particular on the ability of
subsidiaries to settle those receivables within a reasonable period of time.
We evaluated the appropriateness of the disclosure related to the
profits available for distribution within the Company Statement of
Changes in Equity.
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Corporate Governance
Sustainability Statement
Additional Information
Financial Statements
Strategic Report
Financial Statements
Independent auditors’ report to the members of AstraZeneca PLC
continued
As part of our cycle of in person oversight
we visited China and the US (covering both
components in each country). In addition,
we were in regular contact with our UK
component team in Cambridge. We also
visited the SSCs in Poland and India. In
addition to these on-site visits, regular virtual
meetings with the component auditors were
held, whereby we performed reviews of
the component auditors’ planned response
to significant risks and reviewed the
component auditors' working papers.
Alongside our team oversight we attended
meetings with local management.
The impact of climate risk on our audit
In planning and executing our audit, we
considered the potential impact of climate
change on the Group’s business and the
financial statements. The Group has set out
its intention – as part of the Ambition Zero
Carbon programme – to achieve net zero
greenhouse gas emissions by maximising
energy efficiency, shifting to renewable
energy sources and investing in nature-
based removals to compensate for any
residual GHG footprint.
As a part of our audit we made enquiries
of management to understand the extent
of the potential impact of the physical and
transitional climate change risk on the
financial statements. We also discussed the
climate change initiatives and commitments
from Ambition Zero Carbon and other
initiatives to reduce CO
2
emissions, and
the impact these have on the Group
including on future cash flow forecasts.
Management considers that the impact
of climate change does not give rise to
a material financial statement impact.
We evaluated management’s risk
assessment and understood the Group’s
governance processes including the
Sustainability Committee. We performed
an audit risk assessment of how the impact
of the Group’s commitments in respect of
How we tailored the audit scope
We tailored the scope of our audit to ensure
that we performed enough work to be able
to give an opinion on the financial statements
as a whole, taking into account the structure
of the Group and the Company, the
accounting processes and controls, and
the industry in which they operate.
The Group operates in over 100 countries
and the size of operations within each
territory varies. We identify a component
by defining each distinct legal or reporting
entity and each Shared Service Centre
("SSC") as a component. Each component
subsequently reports to the Group through
an integrated consolidation system.
In selecting the components that are in
scope each year and establishing the overall
approach to the Group audit, we determined
the type of work that needed to be
performed by us, as the Group engagement
team, or component auditors within PwC
UK and other PwC network firms operating
under our instruction, to ensure that we had
sufficient coverage from our audit work over
each significant line of the Group financial
statements. Where the work was performed
by component auditors, we determined the
level of involvement we needed to have in
the audit work in these territories to be able
to conclude whether sufficient appropriate
audit evidence had been obtained as a basis
for our opinion on the Group financial
statements as a whole.
As a result of our risk assessment
procedures and the detailed scoping
exercise performed at the planning stage
of our audit, we identified 22 components
across 14 countries at which we determined
that we need to perform audit work. Taken
together, these components accounted for
71% of the Group’s revenue. The in-scope
components were audited by the Group
engagement team and 15 component teams.
•
Out of the 22 components, we identified
four reporting components which required
a full scope audit of their complete
financial information, either due to their
size or risk characteristics. These
components are the principal operating
units in the US (one component) and
China (two components), as well as the
Company (over which we audited all
significant FSLIs using the Company
materiality).
•
For nine out of the remaining 18
components, we performed audit
procedures on a specific line item or
line items within that component that
we considered had the potential for
the greatest impact on the significant
accounts in the financial statements
because of the size of these accounts.
The table opposite illustrates the work
covered in these nine components:
Note that, based on the structure of the Group,
work on some parts or the entirety of some
of these line items was performed centrally,
including by our SSC component teams.
•
SSC components represented five out
of the remaining nine components and
were located in Poland, Malaysia, India,
Costa Rica and Romania. Our teams
auditing the SSC components performed
audit procedures over certain controls
and transactions.
•
Two out of the remaining four
components, which represent US tax
reporting entities, were scoped in for
taxation line items in the financial
statements because of the size or risk.
•
The final two components are treasury
components for which we centrally
audited specific FSLIs.
•
Additionally, for non-full scope
components which were not considered
inconsequential components, we
performed targeted risk assessments
procedures.
•
Audit procedures were performed
centrally at the Group level in relation
to various balances and activities
accounted for and managed centrally
including: goodwill, intangible assets
(excluding software), financial
instruments, taxation, other investments
and litigation matters as well as the
consolidation.
In March 2025, we held a meeting with the
partners and senior staff from the key PwC
member firms involved in the audit. At this
meeting we considered developments
specific to the Group, key audit matters and
discussed our approach to the Group audit
including the work performed at shared
service centre locations. We heard from
key members of management and the
Chair of the Audit Committee.
FSLI
Locations in specific scope
Revenue
UK, Sweden, US, Japan, Germany, Spain,
China and Canada
Cost of sales
UK, Sweden, US and Ireland
Research and development expense
UK, Sweden and US
Selling, general and administrative expense
UK, Sweden, US and Ireland
Taxation
Sweden and US
Property, plant and equipment
UK, Sweden and Ireland
Non-current other receivables
UK
Inventories
UK, Sweden and Ireland
Trade and other receivables
UK, Sweden and US
Trade and other payables
UK and Sweden
Retirement benefit obligations
UK and Sweden
Non-current other payables
UK and Sweden
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Corporate Governance
Sustainability Statement
Additional Information
Financial Statements
Strategic Report
climate change including Ambition Zero
Carbon may affect the financial statements
and our audit.
We challenged the extent to which climate
change considerations including the
expected cash flows from the initiatives
and commitments had been reflected,
where appropriate, in management’s
impairment assessment process, going
concern assessment and viability
assessment.
We found that climate change impacts are
included within management’s forecasts
although the initiatives and commitments
did not have a material impact including
on our key audit matters. We assessed the
consistency of other information disclosed
in the Annual Report with the financial
statements, and with our knowledge
obtained from the audit.
Materiality
The scope of our audit was influenced by
our application of materiality. We set certain
quantitative thresholds for materiality.
These, together with qualitative
considerations, helped us to determine the
scope of our audit and the nature, timing
and extent of our audit procedures on the
individual FSLIs and disclosures and in
evaluating the effect of misstatements,
both individually and in aggregate on the
financial statements as a whole.
Based on our professional judgement,
we determined materiality for the financial
statements as a whole as follows:
Financial statements – Group
Financial statements – Company
Overall materiality
$620m (2024: $500m).
$200m (2024: $155m).
How we determined it
Approximately 5% of profit before tax after adding back intangible asset
impairment charges (Note 11), fair value movements and discount unwind on
contingent consideration (Note 20), and the discount unwind on certain other
payables arising from intangible asset acquisitions (Note 4).
0.4% of net assets as constrained by the allocation
of overall Group materiality.
Rationale for
benchmark applied
The reported profit of the Group can fluctuate due to intangible asset
impairment charges, fair value and discount unwind movements on contingent
consideration, and the discount unwind on certain other payables arising from
intangible asset acquisitions. These amounts are prone to year on year volatility
and are not necessarily reflective of the operating performance of the Group
and as such they have been excluded from the benchmark amount. Our
approach is consistent with the prior year.
We have considered the nature of the business
of AstraZeneca PLC (being a holding company
for investment activities) and have determined
that net assets are an appropriate basis for the
calculation of the overall materiality level.
For each component in the scope of our Group audit, we allocated a materiality that is less than our overall Group materiality. The range
of materiality allocated across components was between $62m and $450m.
Company’s ability to continue as a going
concern for a period of at least twelve
months from when the financial statements
are authorised for issue.
In auditing the financial statements, we
have concluded that the directors’ use of
the going concern basis of accounting in
the preparation of the financial statements
is appropriate.
However, because not all future events or
conditions can be predicted, this conclusion
is not a guarantee as to the Group’s and the
Company’s ability to continue as a going
concern.
In relation to the directors’ reporting on
how they have applied the UK Corporate
Governance Code (the “Code”), we have
nothing material to add or draw attention to
in relation to the directors’ statement in the
financial statements about whether the
directors considered it appropriate to adopt
the going concern basis of accounting.
Our responsibilities and the responsibilities
of the directors with respect to going
concern are described in the relevant
sections of this report.
Conclusions relating to going concern
Our evaluation of the directors’ assessment
of the Group’s and the Company’s ability to
continue to adopt the going concern basis
of accounting included:
•
Agreeing the underlying cash flow
projections to Board approved Group-
level budgets and forecasts, assessing
how these forecasts are compiled,
and assessing the accuracy of
management’s forecasts;
•
Evaluating the key assumptions within
management’s forecasts and ensuring
that such assumptions are consistent with
those modelled in relation to impairments;
•
Considering liquidity and available
financial resources;
•
Assessing whether the stress testing
performed by management appropriately
considered the principal risks facing the
business; and
•
Evaluating the feasibility of management’s
mitigating actions in the stress testing
scenarios and performing our own
sensitivities.
Based on the work we have performed,
we have not identified any material
uncertainties relating to events or conditions
that, individually or collectively, may cast
significant doubt on the Group’s and the
We use performance materiality to reduce
to an appropriately low level the probability
that the aggregate of uncorrected and
undetected misstatements exceeds overall
materiality. Specifically, we use performance
materiality in determining the scope of our
audit and the nature and extent of our testing
of account balances, classes of transactions
and disclosures, for example in determining
sample sizes. Our performance materiality
was 75% (2024: 75%) of overall materiality,
amounting to $465m (2024: $375m) for
the Group financial statements and $150m
(2024: $116.25m) for the Company
financial statements.
In determining the performance materiality,
we considered a number of factors – the
history of misstatements, risk assessment
and aggregation risk and the effectiveness
of controls – and concluded that an amount
at the upper end of our normal range was
appropriate.
We agreed with the Audit Committee that
we would report to them misstatements
identified during our audit above $62m
(Group audit) (2024: $50m) and $62m
(Company audit) (2024: $50m) as well as
misstatements below those amounts that,
in our view, warranted reporting for
qualitative reasons.
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Corporate Governance
Sustainability Statement
Additional Information
Financial Statements
Strategic Report
Financial Statements
Independent auditors’ report to the members of AstraZeneca PLC
continued
Reporting on other information
The other information comprises all of the
information in the Annual Report other than
the financial statements and our auditors’
report thereon. The directors are responsible
for the other information. Our opinion on the
financial statements does not cover the other
information and, accordingly, we do not
express an audit opinion or, except to the
extent otherwise explicitly stated in this
report, any form of assurance thereon.
In connection with our audit of the financial
statements, our responsibility is to read the
other information and, in doing so, consider
whether the other information is materially
inconsistent with the financial statements
or our knowledge obtained in the audit,
or otherwise appears to be materially
misstated. If we identify an apparent material
inconsistency or material misstatement,
we are required to perform procedures to
conclude whether there is a material
misstatement of the financial statements
or a material misstatement of the other
information. If, based on the work we have
performed, we conclude that there is a
material misstatement of this other
information, we are required to report that
fact. We have nothing to report based on
these responsibilities.
With respect to the Strategic Report and
Directors’ Report, we also considered
whether the disclosures required by the UK
Companies Act 2006 have been included.
Based on our work undertaken in the course
of the audit, the Companies Act 2006
requires us also to report certain opinions
and matters as described below.
Strategic Report and Directors’ Report
In our opinion, based on the work
undertaken in the course of the audit, the
information given in the Strategic Report
and Directors’ Report for the year ended
31 December 2025 is consistent with the
financial statements and has been prepared
in accordance with applicable legal
requirements.
In light of the knowledge and understanding
of the Group and Company and their
environment obtained in the course of
the audit, we did not identify any material
misstatements in the Strategic Report and
Directors’ Report.
Directors’ Remuneration
In our opinion, the part of the Directors’
Remuneration Report to be audited has
been properly prepared in accordance
with the Companies Act 2006.
Corporate governance statement
The UK Listing Rules require us to review
the directors’ statements in relation to going
concern, longer-term viability and that part of
the corporate governance statement relating to
the Company’s compliance with the provisions
of the Code specified for our review. Our
additional responsibilities with respect to the
corporate governance statement as other
information are described in the Reporting
on other information section of this report.
Based on the work undertaken as part of our
audit, we have concluded that each of the
following elements of the corporate
governance statement, included within the
Corporate Governance Overview, Corporate
Governance Report, Nomination and
Governance Committee Report, Science
Committee Report, Sustainability Committee
Report and Audit Committee Report is
materially consistent with the financial
statements and our knowledge obtained
during the audit, and we have nothing material
to add or draw attention to in relation to:
•
The directors’ confirmation that they
have carried out a robust assessment of
the emerging and principal risks;
•
The disclosures in the Annual Report
that describe those principal risks, what
procedures are in place to identify
emerging risks and an explanation of how
these are being managed or mitigated;
•
The directors’ statement in the financial
statements about whether they considered
it appropriate to adopt the going concern
basis of accounting in preparing them,
and their identification of any material
uncertainties to the Group’s and
Company’s ability to continue to do so over
a period of at least twelve months from the
date of approval of the financial statements;
•
The directors’ explanation as to their
assessment of the Group’s and
Company’s prospects, the period this
assessment covers and why the period
is appropriate; and
•
The directors’ statement as to whether
they have a reasonable expectation that
the Company will be able to continue in
operation and meet its liabilities as they fall
due over the period of its assessment,
including any related disclosures drawing
attention to any necessary qualifications
or assumptions.
Our review of the directors’ statement
regarding the longer-term viability of the
Group and Company was substantially less
in scope than an audit and only consisted
of making inquiries and considering the
directors’ process supporting their
statement; checking that the statement is
in alignment with the relevant provisions of
the Code; and considering whether the
statement is consistent with the financial
statements and our knowledge and
understanding of the Group and Company
and their environment obtained in the
course of the audit.
In addition, based on the work undertaken
as part of our audit, we have concluded that
each of the following elements of the
corporate governance statement is materially
consistent with the financial statements and
our knowledge obtained during the audit:
•
The directors’ statement that they
consider the Annual Report, taken
as a whole, is fair, balanced and
understandable, and provides the
information necessary for the members
to assess the Group’s and Company’s
position, performance, business model
and strategy;
•
The section of the Annual Report that
describes the review of effectiveness
of risk management and internal control
systems; and
•
The section of the Annual Report
describing the work of the Audit
Committee.
We have nothing to report in respect of our
responsibility to report when the directors’
statement relating to the Company’s
compliance with the Code does not properly
disclose a departure from a relevant
provision of the Code specified under the
UK Listing Rules for review by the auditors.
Responsibilities for the financial
statements and the audit
Responsibilities of the directors for
the financial statements
As explained more fully in the Preparation
of the Financial Statements and Directors’
Responsibilities, the directors are
responsible for the preparation of the
financial statements in accordance with the
applicable framework and for being satisfied
that they give a true and fair view. The
directors are also responsible for such
internal control as they determine is
necessary to enable the preparation of
financial statements that are free from
material misstatement, whether due to
fraud or error.
In preparing the financial statements, the
directors are responsible for assessing
the Group’s and the Company’s ability to
continue as a going concern, disclosing,
as applicable, matters related to going
concern and using the going concern basis
of accounting unless the directors either
intend to liquidate the Group or the Company
or to cease operations, or have no realistic
alternative but to do so.
Auditors’ responsibilities for the audit
of the financial statements
Our objectives are to obtain reasonable
assurance about whether the financial
statements as a whole are free from material
misstatement, whether due to fraud or error,
and to issue an auditors’ report that includes
our opinion. Reasonable assurance is a high
level of assurance, but is not a guarantee
that an audit conducted in accordance with
ISAs (UK) will always detect a material
misstatement when it exists. Misstatements
can arise from fraud or error and are
123
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Corporate Governance
Sustainability Statement
Additional Information
Financial Statements
Strategic Report
Financial Statements | Independent auditors’ report to the members of AstraZeneca PLC
considered material if, individually or
in the aggregate, they could reasonably
be expected to influence the economic
decisions of users taken on the basis
of these financial statements.
Irregularities, including fraud, are
instances of non-compliance with laws
and regulations. We design procedures in
line with our responsibilities, outlined above,
to detect material misstatements in respect
of irregularities, including fraud. The extent
to which our procedures are capable of
detecting irregularities, including fraud,
is detailed below.
Based on our understanding of the Group
and industry, we identified that the principal
risks of non-compliance with laws and
regulations related to patent protection,
product safety (including but not limited
to the US Food and Drug Administration
regulation, the European Medicines Agency,
the UK Medicines and Healthcare products
Regulatory Agency, China Food and Drug
Administration), data protection legislation,
antibribery and competition law (including
but not limited to the US Foreign Corrupt
Practices Act, the UK Proceeds of Crime
Act, the UK Economic Crime and Corporate
Transparency Act and the provisions set
out by the National Healthcare Security
Administration in China), and we considered
the extent to which non-compliance might
have a material effect on the financial
statements. We also considered those laws
and regulations that have a direct impact
on the financial statements such as the
Companies Act 2006, UK Listing Rules and
tax legislation. We evaluated management’s
incentives and opportunities for fraudulent
manipulation of the financial statements
(including the risk of override of controls),
and determined that the principal risks were
related to journal entries to manipulate
financial results and potential management
bias in accounting estimates. The Group
engagement team shared this risk
assessment with the component auditors
so that they could include appropriate audit
procedures in response to such risks in their
work. Audit procedures performed by the
Group engagement team and/or component
auditors included:
•
Evaluation and testing of the design
and operating effectiveness of
management’s controls to prevent
and detect irregularities;
•
Discussions with VP Group Internal Audit,
the Deputy Chief Compliance Officer, the
Head of Global Investigations and the
Group’s General Counsel and Deputy
General Counsels along with other
members of Group legal and external
counsel where applicable, including
consideration of known or suspected
instances of non-compliance with laws
and regulations and fraud;
•
Assessment of matters reported on
the Group’s whistleblowing helpline;
•
Assessment of the results of
management’s investigations, with the
assistance of professionals with specialised
skill and knowledge where appropriate;
•
Challenging assumptions made by
management in its significant accounting
estimates; and
•
Identifying and testing the validity of
selected journal entries, including certain
journal entries posted with unusual
account combinations, and certain
consolidation journals.
There are inherent limitations in the audit
procedures described above. We are less
likely to become aware of instances of
non-compliance with laws and regulations
that are not closely related to events and
transactions reflected in the financial
statements. Also, the risk of not detecting
a material misstatement due to fraud is
higher than the risk of not detecting one
resulting from error, as fraud may involve
deliberate concealment by, for example,
forgery or intentional misrepresentations,
or through collusion.
Our audit testing might include testing
complete populations of certain transactions
and balances, possibly using data auditing
techniques. However, it typically involves
selecting a limited number of items for
testing, rather than testing complete
populations. We will often seek to target
particular items for testing based on their
size or risk characteristics. In other cases,
we will use audit sampling to enable us to
draw a conclusion about the population
from which the sample is selected.
A further description of our responsibilities
for the audit of the financial statements
is located on the FRC’s website at:
www.frc.org.uk/auditorsresponsibilities.
This description forms part of our
auditors’ report.
Use of this report
This report, including the opinions, has been
prepared for and only for the Company’s
members as a body in accordance with
Chapter 3 of Part 16 of the Companies Act
2006 and for no other purpose. We do not,
in giving these opinions, accept or assume
responsibility for any other purpose or to any
other person to whom this report is shown
or into whose hands it may come save where
expressly agreed by our prior consent
in writing.
Other required reporting
Companies Act 2006 exception reporting
Under the Companies Act 2006 we are
required to report to you if, in our opinion:
•
we have not obtained all the information
and explanations we require for our audit;
or
•
adequate accounting records have not
been kept by the Company, or returns
adequate for our audit have not been
received from branches not visited by us;
or
•
certain disclosures of directors’
remuneration specified by law are
not made; or
•
the Company financial statements and the
part of the Directors’ Remuneration Report
to be audited are not in agreement with
the accounting records and returns.
We have no exceptions to report arising
from this responsibility.
Appointment
We were first appointed by the company for
the financial year ended 31 December 2017.
Our uninterrupted engagement covers nine
financial years.
Other matter
The company is required by the Financial
Conduct Authority Disclosure Guidance
and Transparency Rules to include these
financial statements in an annual financial
report prepared under the structured digital
format required by DTR 4.1.15R – 4.1.18R
and filed on the National Storage Mechanism
of the Financial Conduct Authority.
This auditors’ report provides no assurance
over whether the structured digital format
annual financial report has been prepared
in accordance with those requirements.
Sarah Quinn (Senior Statutory Auditor)
for and on behalf of
PricewaterhouseCoopers LLP
Chartered Accountants and Statutory Auditors
London
10 February 2026
124
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Annual Report & Form 20-F Information 2025
Corporate Governance
Sustainability Statement
Additional Information
Financial Statements
Strategic Report
Financial Statements
Independent auditors’ report to the members of AstraZeneca PLC
continued
Consolidated Statement of Comprehensive Income
for the year ended 31 December
2025
2024
2023
Notes
$m
$m
$m
– Product Sales
2
– Alliance Revenue
2
Product Revenue
Collaboration Revenue
2
Total Revenue
Cost of sales
(10,633 )
(10,207 )
(8,268 )
Gross profit
Distribution expense
(579 )
(555 )
(539 )
Research and development expense
3
(14,232 )
(13,583 )
(10,935 )
Selling, general and administrative expense
3
(19,933 )
(19,977 )
(19,216 )
Other operating income and expense
3
Operating profit
Finance income
4
Finance expense
4
(1,694 )
(1,742 )
(1,626 )
Share of after tax losses in associates and joint ventures
12
(7 )
(28 )
(12 )
Profit before tax
Taxation
5
(2,169 )
(1,650 )
(938 )
Profit for the period
Other comprehensive income:
Items that will not be reclassified to profit and loss:
Remeasurement of the defined benefit pension liability
22
(406 )
Net gains on equity investments measured at fair value through Other comprehensive income
Fair value movements related to own credit risk on bonds designated as fair value through profit or loss
(6 )
Tax (expense)/income on items that will not be reclassified to profit and loss
5
(94 )
(43 )
(33 )
Items that may be reclassified subsequently to profit and loss:
Foreign exchange arising on consolidation
23
(957 )
Foreign exchange arising on designated liabilities in net investment hedges
23
(122 )
Fair value movements on cash flow hedges
(129 )
Fair value movements on cash flow hedges transferred to profit and loss
(314 )
(145 )
Fair value movements on derivatives designated in net investment hedges
23
Gains/(costs) of hedging
(21 )
(19 )
Tax (expense)/income on items that may be reclassified subsequently to profit and loss
5
(50 )
(12 )
(988 )
Other comprehensive income/(expense) for the period, net of tax
(800 )
Total comprehensive income for the period
Profit attributable to:
Owners of the Parent
Non-controlling interests
26
Total comprehensive income attributable to:
Owners of the Parent
Non-controlling interests
26
Basic earnings per $0.25 Ordinary Share
6
$6.60
$4.54
$3.84
Diluted earnings per $0.25 Ordinary Share
6
$6.54
$4.50
$3.81
Weighted average number of Ordinary Shares in issue (millions)
6
Diluted weighted average number of Ordinary Shares in issue (millions)
6
Dividends declared and paid in the period
25
All activities were in respect of continuing operations.
$m means millions of US dollars.
125
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Annual Report & Form 20-F Information 2025
Corporate Governance
Sustainability Statement
Additional Information
Financial Statements
Strategic Report
Financial Statements | Consolidated Statements
Consolidated Statement of Financial Position
at 31 December
2025
2024
Notes
$m
$m
Assets
Non-current assets
Property, plant and equipment
8
Right-of-use assets
9
Goodwill
10
Intangible assets
11
Investments in associates and joint ventures
12
Other investments
13
Derivative financial instruments
14
Other receivables
15
Income tax receivable
5
Deferred tax assets
5
Current assets
Inventories
16
Trade and other receivables
17
Other investments
13
Derivative financial instruments
14
Income tax receivable
5
Cash and cash equivalents
18
Total assets
Liabilities
Current liabilities
Interest-bearing loans and borrowings
19
(3,104 )
(2,337 )
Lease liabilities
9
(382 )
(339 )
Trade and other payables
20
(25,280 )
(22,465 )
Derivative financial instruments
14
(81 )
(50 )
Provisions
21
(686 )
(1,269 )
Income tax payable
5
(1,084 )
(1,406 )
(30,617 )
(27,866 )
Non-current liabilities
Interest-bearing loans and borrowings
19
(24,715 )
(26,506 )
Lease liabilities
9
(1,421 )
(1,113 )
Derivative financial instruments
14
(115 )
Deferred tax liabilities
5
(3,500 )
(3,305 )
Retirement benefit obligations
22
(1,105 )
(1,330 )
Provisions
21
(918 )
(921 )
Income tax payable
5
(700 )
(238 )
Other payables
20
(2,379 )
(1,770 )
(34,738 )
(35,298 )
Total liabilities
(65,355 )
(63,164 )
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
Pascal Soriot
Aradhana Sarin
Director
Director
126
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Annual Report & Form 20-F Information 2025
Corporate Governance
Sustainability Statement
Additional Information
Financial Statements
Strategic Report
Financial Statements
Consolidated Statement of Changes in Equity
for the year ended 31 December
Share
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 2023
(574 )
Profit for the period
Other comprehensive income
1
Transfer to Other reserves
2
(4 )
Transactions with owners
Dividends (Note 25)
(4,487 )
(4,487 )
(4,487 )
Dividends paid to non-controlling interests (Note 25)
(4 )
(4 )
Issue of Ordinary Shares
Share-based payments charge for the period (Note 29)
Settlement of share plan awards
(708 )
(708 )
(708 )
Net movement
(4 )
At 31 December 2023
Profit for the period
Other comprehensive expense
1
(799 )
(799 )
(1 )
(800 )
Transfer to Other reserves
2
(15 )
Transactions with owners
Dividends (Note 25)
(4,602 )
(4,602 )
(4,602 )
Dividends paid to non-controlling interests (Note 25)
(4 )
(4 )
Issue of Ordinary Shares
Changes in non-controlling interests
Movement in shares held by Employee Benefit Trusts
2
(68 )
(68 )
(68 )
Share-based payments charge for the period (Note 29)
Settlement of share plan awards
(621 )
(621 )
(621 )
Net movement
(53 )
At 31 December 2024
Profit for the period
Other comprehensive (expense)/income
1
(61 )
Transfer to Other reserves
2
(47 )
Transactions with owners
Dividends (Note 25)
(4,846 )
(4,846 )
(4,846 )
Dividends paid to non-controlling interests (Note 25)
(6 )
(6 )
Issue of Ordinary Shares
Changes in non-controlling interests
(214 )
(214 )
(43 )
(257 )
Movement in shares held by Employee Benefit Trusts
2
Share-based payments charge for the period (Note 29)
Settlement of share plan awards
(781 )
(781 )
(781 )
Net movement
(33 )
At 31 December 2025
1
Included within Other comprehensive income of $2,703 m (2024: expense of $800 m; 2023: income of $733 m) is a gain of $1 m (2024: charge of $21 m; 2023: charge of $19 m), relating to
Gains/(costs) of hedging.
2
Amounts charged or credited to Other reserves relate to exchange adjustments arising on goodwill and movements in shares held by Employee Benefit Trusts. Transfer to Other reserves
includes $70m (2024: $nil; 2023: $nil) in respect of the opening balance on the cash flow hedge reserve. The cash flow hedge reserve was previously disclosed within Retained earnings
but from 2025 is disclosed within Other reserves.
127
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Annual Report & Form 20-F Information 2025
Corporate Governance
Sustainability Statement
Additional Information
Financial Statements
Strategic Report
Financial Statements | Consolidated Statements
for the year ended 31 December
2025
2024
2023
Notes
$m
$m
$m
Cash flows from operating activities
Profit before tax
Finance income and expense
4
Share of after tax losses in associates and joint ventures
12
Depreciation, amortisation and impairment
3
Increase in trade and other receivables
(1,728 )
(1,624 )
(1,425 )
Increase in inventories
(755 )
(131 )
(669 )
Increase in trade and other payables and provisions
Gains on disposal of intangible assets
3
(168 )
(64 )
(251 )
Fair value movements on contingent consideration arising from business combinations
20
(97 )
Non-cash and other movements
18
(121 )
(386 )
Cash generated from operations
Interest paid
(1,316 )
(1,313 )
(1,081 )
Tax paid
(2,845 )
(2,750 )
(2,366 )
Net cash inflow from operating activities
Cash flows from investing activities
Acquisition of subsidiaries, net of cash acquired
27
(66 )
(2,771 )
(189 )
Payments upon vesting of employee share awards attributable to business combinations
27
(3 )
(84 )
Payment of contingent consideration from business combinations
20
(1,164 )
(1,008 )
(826 )
Purchase of property, plant and equipment
(2,810 )
(1,924 )
(1,361 )
Disposal of property, plant and equipment
Purchase of intangible assets
(3,095 )
(2,662 )
(2,417 )
Disposal of intangible assets
Movement in profit-participation liability
3
Purchase of non-current asset investments
(229 )
(96 )
(136 )
Disposal of non-current asset investments
Movement in short-term investments, fixed deposits and other investing instruments
Payments to associates and joint ventures
12
(10 )
(158 )
(80 )
Disposal of investments in associates and joint ventures
Interest received
Net cash outflow from investing activities
(6,808 )
(7,980 )
(4,064 )
Net cash inflow before financing activities
Cash flows from financing activities
Proceeds from issue of share capital
Own shares purchased by Employee Benefit Trusts
(521 )
(81 )
Payments to acquire non-controlling interests
(183 )
Issue of loans and borrowings
Repayment of loans and borrowings
(2,029 )
(4,652 )
(4,942 )
Dividends paid
25
(4,971 )
(4,629 )
(4,481 )
Hedge contracts relating to dividend payments
25
(19 )
Repayment of obligations under leases
(372 )
(316 )
(268 )
Movement in short-term borrowings
(31 )
Payment of Acerta Pharma share purchase liability
(833 )
(867 )
Net cash outflow from financing activities
(7,544 )
(3,996 )
(6,567 )
Net increase/(decrease) in Cash and cash equivalents in the period
(115 )
(286 )
Cash and cash equivalents at the beginning of the period
Exchange rate effects
(93 )
(60 )
Cash and cash equivalents at the end of the period
18
128
AstraZeneca
Annual Report & Form 20-F Information 2025
Corporate Governance
Sustainability Statement
Additional Information
Financial Statements
Strategic Report
Financial Statements
Strategic Report
Corporate Governance
Financial Statements
Sustainability Statement
Additional Information
Financial Statements | Group Accounting Policies
AstraZeneca
Annual Report & Form 20-F Information 2025
129
of financial information
(or Group 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
New accounting requirements
The following amendments have been issued
and 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 United
Kingdom Endorsement Board (UKEB) on
15 July 2024.
The above amendments did not have a
significant impact on the Group’s net results,
Product revenue subtotal
Effective 1 January 2025, the Group has
updated the presentation of Total Revenue
on the face of the Consolidated Statement
of Comprehensive Income to include a new
subtotal ‘Product Revenue’. This represents
the summation of Product Sales and
Alliance Revenue on the basis of the similar
characteristics of the underlying product sales
curve profiles related to the end customer.
Product Revenue and Collaboration Revenue
form Total Revenue. Product Sales and
Alliance Revenue continue to be presented
separately, with the new subtotal providing
additional aggregation of revenue types with
similar characteristics, reflecting the growing
importance of Alliance Revenue.
There are no changes to the Revenue
accounting policy regarding the types of
transactions recorded in each revenue
category. The comparative years have
been retrospectively adjusted to reflect the
additional subtotal, resulting in total Product
Revenue being reported for the year ended
31 December 2024 of $53,150m and the year
ended 31 December 2023 of $45,217m.
Statements on a going concern basis
The Group has considerable financial
resources available. As at 31 December 2025,
the Group has $10.6bn in financial resources
(cash and cash equivalent balances of $5.7bn
and undrawn committed bank facilities of
$4.9bn that are available until April 2030), with
$3.5bn of borrowings due within one year.
These facilities contain no financial covenants,
and in January 2026 their maturity was
extended to April 2031.
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
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
KJ
and Significant Estimates
SE
:
•
revenue recognition – see Revenue
accounting policy on page 130
KJ
and
Note 2 on page 141
SE
•
expensing of internal development
expenses – see Research and development
accounting policy on page 131
KJ
•
impairment reviews of Intangible assets
– see Note 11 on page 153
SE
•
useful economic life of Intangible assets
– see Research and development
accounting policy on page 131
KJ
•
business combinations and Goodwill –
see Business combinations and goodwill
accounting policy on page 134
KJ
•
litigation liabilities – see Legal proceedings
within Note 30 on page 181
KJ
•
operating segments – see Note 7 on
page 147
KJ
•
employee benefits – see Note 22 on
page 168
SE
•
taxation – see Note 30 on page 190
KJ
.
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 Research and development
(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.
KJ
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.
SE
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 171.
AstraZeneca’s management considers the
following to be the material accounting policies
Revenue comprises Product Sales, Alliance
Revenue and Collaboration Revenue.
Revenue excludes inter-company revenues
and value-added taxes.
Strategic Report
Corporate Governance
Financial Statements
Sustainability Statement
Additional Information
Group Accounting Policies
continued
Financial Statements
AstraZeneca
Annual Report & Form 20-F Information 2025
130
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
12 months for established products together
with market-related information such as
estimated stock levels at wholesalers and
competitor activity which we receive via
third-party information services. For newly
launched products, we use rates based on
our experience with similar products or a
predetermined percentage.
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
100% of sales to the end customer. In the
cases where AstraZeneca does not act as
principal, we record the share of gross
profits received within Alliance Revenue.
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, a 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
‘Revenue from Contracts with Customers’.
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.
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.
KJ
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 cumulative 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.
Strategic Report
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Additional Information
Financial Statements | Group Accounting Policies
AstraZeneca
Annual Report & Form 20-F Information 2025
131
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 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
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 expenditure is charged to profit
and loss in the year in which it is incurred.
KJ
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 2025, no
amounts have met the recognition criteria.
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.
KJ
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
Intangible assets are stated at cost less
accumulated amortisation and impairments.
Intangible assets relating to products in
development are subject to impairment
testing at least 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 11
to the Financial Statements from page 151.
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
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.
Strategic Report
Corporate Governance
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Sustainability Statement
Additional Information
Group Accounting Policies
continued
Financial Statements
AstraZeneca
Annual Report & Form 20-F Information 2025
132
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 intellectual property (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
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
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
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 working 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
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.
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.
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
Liabilities for uncertain tax positions require
management to make judgements of potential
exposures in relation to tax audit issues based
upon interpretation of applicable laws and
regulations and the expectation of how the
tax authority will resolve the matter. Tax
benefits are recognised when it is probable
the tax positions will be accepted by the tax
authorities. When a position is not considered
probable of being accepted, management
reviews each material tax benefit and reflects
the effect of the uncertainty in determining
the related taxable result. This is 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
Strategic Report
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AstraZeneca
Annual Report & Form 20-F Information 2025
133
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 cost
of shares held by EBTs at the period end is
deducted from equity. The cash flows relating
to replacement awards issued to employees
as part of the Alexion Pharmaceuticals, Inc.
(Alexion) acquisition are classified within
investing activities, as they are part of the
aggregate cash flows arising from obtaining
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 10 to 50 years for buildings, and
three to 15 years for plant and equipment.
All items of Property, plant and equipment
are tested for impairment when there are
indications that the carrying value may not
be recoverable. Any impairment losses are
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. 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.
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
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 10 to 50 years for
buildings, and three to 15 years for motor
vehicles and other assets.
There are no material lease agreements under
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.
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AstraZeneca
Annual Report & Form 20-F Information 2025
134
KJ
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 acquiring a business, fair values are
assigned to identifiable assets and liabilities
by the application of judgement. Contingent
liabilities are recognised at fair value unless it
cannot be measured reliably.
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.
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
A subsidiary is an entity controlled, directly
or indirectly, by AstraZeneca PLC
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
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
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.
Trade receivables that are subject to debt
factoring arrangements are derecognised if
they meet the conditions for derecognition
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 Group’s financial instruments include
Lease liabilities, Trade and other receivables
and payables, liabilities for contingent
consideration under business combinations,
and rights and obligations under employee
benefit plans which are dealt with in specific
accounting policies.
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 (such overdrafts
are included within current Interest-bearing
loans and borrowings in the Consolidated
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
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 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.
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AstraZeneca
Annual Report & Form 20-F Information 2025
135
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
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
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.
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
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
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 181.
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.
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AstraZeneca
Annual Report & Form 20-F Information 2025
136
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.
The carrying values of non-financial assets,
other than Inventories and Deferred tax assets,
are reviewed at least annually for indicators
of impairment. For Goodwill, Intangible assets
in development and 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
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.
IFRS 18 was endorsed by the UKEB on
10 December 2025.
•
The Group continues to advance with
the implementation of IFRS 18 and is well
progressed with the adoption impact
assessment. The Group is not seeking to
early adopt this new standard. However, as
a means of illustrating the impact of IFRS 18
on the presentation of the Group’s results
for the year ended 31 December 2025,
the currently expected IFRS 18 adoption
impacts for 2025 are shown in Note 1 to the
Financial Statements. The Group continues
to monitor IFRS 18 implementation
guidance in advance of adoption for the
accounting year beginning 1 January 2027.
In addition, the following amendments were
issued but not yet adopted:
•
amendments to IFRS 9 ‘Financial
Instruments’ and IFRS 7 ‘Financial
Instruments: Disclosures’, effective for
periods beginning on or after 1 January
2026 – endorsed by the UKEB on 15 April
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Notes to the Group Financial Statements
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’. There are also consequential amendments to IAS 7 ‘Cash Flows’, IAS 8 ‘Accounting Policies,
Changes in Accounting Estimates and Errors’, IAS 33 ‘Earnings per Share’ and IAS 34 ‘Interim Financial Reporting’, also effective for accounting
periods beginning on or after 1 January 2027. The Group is well progressed with the impact assessment of the adoption of this new standard,
with the expected impact for the year ended 31 December 2025 detailed below.
The Group will apply IFRS 18 retrospectively, in accordance with IAS 8. The Group has not elected to utilise the option to change the measurement
of eligible investments in associates and joint ventures from the equity method to fair value through profit or loss at the date of transition.
The new standard introduces new requirements for the presentation, classification and disclosure of financial statement line items. The
requirements were introduced to help achieve comparability of the financial performance of similar entities and provide more relevant information
and transparency to users. The key changes include the requirement to classify all income and expense into one of five categories; operating,
investing, financing, taxation and discontinued operations, and introduces new mandated subtotals within the Consolidated Statement of
Comprehensive Income, including Operating profit, Profit before financing and income tax and Profit for the period. In addition, details of
management-defined performance measures (‘MPMs’) will now be disclosed as well as further detailed disclosure related to operating
expense by nature. The new standard also offers enhanced guidance on aggregation and disaggregation of financial information.
Although the adoption of IFRS 18 will have no impact on the Group’s Profit for the period or Total Revenue, the Group expects that grouping items
of income and expense in the Consolidated Statement of Profit or Loss into the new categories will impact how Operating profit is reported.
The Group does not have a specified main business activity as defined in IFRS 18.
Reconciliation of the Consolidated Statement of Profit or Loss – Illustrative under IFRS 18 for the year ended 31 December 2025
Existing | Adjusted for | |||
IAS 1 | Transition | IFRS 18 | ||
2025 | adjustments | 2025 | ||
IAS 1 presentation | $m | $m | $m | Expected IFRS 18 presentation |
– Product Sales | 55,573 | – | 55,573 | – Product Sales |
– Alliance Revenue | 3,067 | – | 3,067 | – Alliance Revenue |
Product Revenue | 58,640 | – | 58,640 | Product Revenue |
Collaboration Revenue | 99 | – | 99 | Collaboration Revenue |
Total Revenue | 58,739 | – | 58,739 | Total Revenue |
Cost of sales | (10,633) | 9 | (10,624) | Cost of sales |
Gross profit | 48,106 | 9 | 48,115 | Gross profit |
Distribution expense | (579) | – | (579) | Distribution expense |
Research and development expense | (14,232) | – | (14,232) | Research and development expense |
(12,529) | (12,529) | Selling and marketing expense | ||
Selling, general and administrative expense | (19,933) | 12,529 | (7,404) | General and administrative expense |
Other operating income and expense | 381 | 13 | 394 | Other operating income and expense |
Operating profit | 13,743 | 22 | 13,765 | Operating profit |
343 | 343 | Investing income | ||
(7) | (7) | Share of after tax losses in associates and joint ventures | ||
14,101 | 14,101 | Profit before financing and income tax | ||
Finance income | 360 | (360) | ||
Finance expense | (1,694) | (5) | (1,699) | Finance expense |
Share of after tax losses in associates and joint ventures | (7) | 7 | ||
Profit before tax | 12,402 | – | 12,402 | Profit before tax |
Taxation | (2,169) | – | (2,169) | Taxation |
Profit for the period | 10,233 | – | 10,233 | Profit for the period |
Explanation of the adjustments due to IFRS 18
Share of after tax losses in associates and joint ventures will be presented within the investing category of the Consolidated Statement of
Comprehensive Income, within the new subtotal of Profit or loss before financing and income tax which totals an expected $14,101m in 2025.
Returns on deposits and equity securities, and interest income on tax balances, previously reported within Finance income will be reclassified
under IFRS 18 to Investing income, totalling an expected $360m in 2025.
Notes to the Group Financial Statements
continued
1 IFRS 18 ‘Presentation and Disclosure in Financial Statements’
continued
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138
Foreign exchange differences on cash and short-term deposits, previously included within Finance income and Finance expense, will be
classified within the investing category under IFRS 18, expected to result in a reduction to Finance expense and a decrease in Investing
income of $17m in 2025.
Gains and losses on certain designated hedges, previously included within Finance income and Finance expense, will be classified within the
operating category under IFRS 18, resulting in an expected reduction to Finance expense and an increase in Other operating income and
expense of $13m in 2025.
Under IFRS 18, Selling, general and administrative expense ($19,933m in 2025) will be disaggregated into Selling and marketing expense
($12,529m in 2025) and General and administrative expense ($7,404m in 2025
).
Consolidated Statement of Cash Flows
The Consolidated Statement of Cash Flows under the amended IAS 7 requirements will start with Operating profit ($13,765m for 2025 under
IFRS 18), rather than the previous starting point of Profit before tax ($12,402m in 2025 under IAS 1), removing the need to add back Finance
income and expense ($1,334m in 2025) and Share of after tax losses of associates and joint ventures ($7m in 2025
). In addition, Interest paid
($1,316m in 2025) will be reclassified to Cash flows from financing activities under IFRS 18, previously classified within Cash flows from
operating activities.
Operating expenses by nature
The Group currently presents expenses in the Consolidated Statement of Comprehensive Income by function. While IFRS 18 continues to permit
this presentation, it introduces additional disclosure requirements in the Notes to the Financial Statements. The following table presents 2025
operating expenses split by nature according to the requirements of IFRS 18.
Net impairment | Employee | Net inventory | |||
Depreciation | Amortisation | charges | benefits | write-downs | |
$m | $m | $m | $m | $m | |
Total amount related to: | |||||
Cost of sales | 404 | 86 | 3 | 1,633 | 314 |
Distribution expense | 6 | – | – | 43 | – |
Research and development expense | 456 | 47 | 214 | 4,879 | – |
Selling and marketing expense | 210 | 9 | – | 6,346 | – |
General and administrative expense | 205 | 4,064 | 26 | 1,759 | – |
Other operating income and expense | 2 | 1 | – | 78 | – |
Total amount relating to operating category | 1,283 | 4,207 | 243 | 14,738 | 314 |
The amounts disclosed are those expensed during the year, except for depreciation and employee benefits which include amounts capitalised
to inventory and software development costs.
Management-defined performance measures (MPMs)
The Group has identified Core Gross profit ($48,039m in 2025 under IFRS 18), Core Operating profit ($18,500m in 2025 under IFRS 18
) and
Core Profit attributable to owners of the Parent (numerator of core basic earnings per share, $14,201m in 2025 under IFRS 18) as MPMs used
in its public communications to communicate management’s view of an aspect of the operating performance of the Group as a whole. These
measures are not specifically required to be presented or disclosed by IFRS, which means they may not be directly comparable with similarly
labelled or described measures by other entities.
The reported IFRS results are adjusted to exclude certain significant items. In determining the adjustments to arrive at the Core result, we use
a set of established principles relating to the nature or materiality of individual items or groups of items, excluding, for example, events which
are (i) outside the normal course of business, (ii) incurred in a pattern that is unrelated to the trends in the underlying financial performance
of our ongoing business, or (iii) related to major acquisitions, to ensure that investors’ ability to evaluate and analyse the underlying financial
performance of our ongoing business is enhanced. Group management believes that these adjusted measures offer a relevant alternative
perspective on the Group’s underlying operating performance by excluding the effects of the above mentioned items that are not indicative
of the ongoing business activities. Group management considers this useful for understanding profitability trends and for evaluating the
Group’s ability to generate sustainable earnings from its core operations.
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Annual Report & Form 20-F Information 2025
139
Our Core adjustments are summarised as:
Restructuring costs
, including charges and provisions related to our global restructuring programmes on our capitalised manufacturing facilities
and IT assets. These can take place over multiple reporting periods, given the long life-cycle of our business.
Why we use them:
We adjust for these charges and provisions because they primarily reflect the financial impact of change to legacy
arrangements, rather than the underlying performance of our ongoing business.
Intangible amortisation and impairments
, including impairment reversals but excluding any charges relating to IT assets. Intangibles generally
arise from business combinations and individual licence acquisitions.
Why we use them:
We adjust for these charges because their pattern of recognition is largely uncorrelated with the underlying performance
of the business.
Other specified items
, principally comprise acquisition-related costs and credits, which include the imputed finance charges and fair value
movements relating to contingent consideration on business combinations, imputed finance charges and remeasurement adjustments on certain
Other payables arising from intangible asset acquisitions, remeasurement adjustments relating to Other payables and debt items assumed
from the Alexion acquisition and legal settlements.
Why we use them:
We adjust for these items to enable a more meaningful comparison of the performance of acquired businesses and products
to that of internally developed products, as well as removing charges whose pattern of recognition is largely uncorrelated to the underlying
performance of the business. It should be noted that some costs excluded from our Core results, such as intangible amortisation and finance
charges related to contingent consideration, will recur in future years, and other excluded items such as impairments and legal settlement costs,
along with other acquisition-related costs, may recur in the future.
Limitations:
Core results exclude significant costs (such as restructuring, intangible amortisation and impairments, and other acquisition-related
adjustments), but incorporate associated benefits, including Product Sales arising from business combinations, asset acquisitions and assets
which have been amortised, as well as the benefits resulting from restructuring activities and, as such, they should not be regarded as a complete
picture of the Group’s financial performance, which is presented in its Reported results. The exclusion of the adjusting items may result in
Core earnings being materially higher or lower than Reported earnings.
2025 Reconciliation of Expected Reported (IFRS 18) results to Expected Core (IFRS 18) results
2025 | |||||
Expected | Intangible | 2025 | |||
Reported | Restructuring | amortisation | Expected Core | ||
(IFRS 18) | costs | and impairments | Other | (IFRS 18) | |
$m | $m | $m | $m | $m | |
Gross profit | 48,115 | (138) | 32 | 30 | 48,039 |
Income tax 1 | 18 | (3) | (5) | ||
Profit attributable to non-controlling interests | – | – | – | ||
Distribution expense | (579) | – | – | – | (579) |
Research and development expense | (14,232) | 171 | 236 | 3 | (13,822) |
Selling and marketing expense | (12,529) | 40 | – | 1 | (12,488) |
General and administrative expense | (7,404) | 169 | 4,059 | 130 | (3,046) |
Other operating income and expense | 394 | (5) | – | 7 | 396 |
Operating profit | 13,765 | 237 | 4,327 | 171 | 18,500 |
Income tax 1 | (68) | (825) | (58) | ||
Profit attributable to non-controlling interests | – | – | – | ||
Net investing | 336 | – | – | – | 336 |
Profit before financing and income tax | 14,101 | 237 | 4,327 | 171 | 18,836 |
Finance expense | (1,699) | – | – | 242 | (1,457) |
Taxation | (2,169) | (68) | (825) | (108) | (3,170) |
Profit for the period | 10,233 | 169 | 3,502 | 305 | 14,209 |
Profit attributable to non-controlling interests | (8) | – | – | – | (8) |
Profit attributable to owners of the Parent | 10,225 | 169 | 3,502 | 305 | 14,201 |
Income tax 1 | (68) | (825) | (108) | ||
Profit attributable to non-controlling interests | – | – | – | ||
Basic earnings per $0.25 Ordinary Share | $6.60 | $0.11 | $2.26 | $0.19 | $9.16 |
1
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Corporate Governance
Financial Statements
Sustainability Statement
Additional Information
Financial Statements
AstraZeneca
Annual Report & Form 20-F Information 2025
140
Notes to the Group Financial Statements
continued
Product Sales
2025 | 2024 | 2023 | |||||||||||||
Emerging | Rest of | Emerging | Rest of | Emerging | Rest of | ||||||||||
US | Markets | Europe | World | Total | US | Markets | Europe | World | Total | US | Markets | Europe | World | Total | |
$m | $m | $m | $m | $m | $m | $m | $m | $m | $m | $m | $m | $m | $m | $m | |
Oncology: | |||||||||||||||
Tagrisso | 3,064 | 1,971 | 1,423 | 796 | 7,254 | 2,763 | 1,755 | 1,301 | 761 | 6,580 | 2,276 | 1,621 | 1,120 | 782 | 5,799 |
Imfinzi | 3,509 | 640 | 1,239 | 675 | 6,063 | 2,603 | 479 | 948 | 687 | 4,717 | 2,171 | 355 | 742 | 751 | 4,019 |
Calquence | 2,339 | 233 | 784 | 162 | 3,518 | 2,190 | 153 | 656 | 130 | 3,129 | 1,815 | 98 | 493 | 108 | 2,514 |
Lynparza | 1,434 | 669 | 914 | 262 | 3,279 | 1,332 | 655 | 832 | 253 | 3,072 | 1,254 | 542 | 734 | 281 | 2,811 |
Enhertu | – | 668 | 207 | 102 | 977 | – | 350 | 126 | 69 | 545 | – | 169 | 60 | 32 | 261 |
Zoladex | 19 | 842 | 157 | 88 | 1,106 | 16 | 795 | 148 | 99 | 1,058 | 14 | 687 | 133 | 118 | 952 |
Truqap | 586 | 23 | 85 | 34 | 728 | 408 | 2 | 12 | 8 | 430 | 6 | – | – | – | 6 |
Imjudo | 227 | 22 | 52 | 45 | 346 | 180 | 16 | 36 | 49 | 281 | 146 | 5 | 16 | 51 | 218 |
Datroway | – | 2 | – | – | 2 | – | – | – | – | – | – | – | – | – | – |
Others | 9 | 280 | 19 | 117 | 425 | 18 | 297 | 23 | 125 | 463 | 37 | 351 | 34 | 143 | 565 |
11,187 | 5,350 | 4,880 | 2,281 | 23,698 | 9,510 | 4,502 | 4,082 | 2,181 | 20,275 | 7,719 | 3,828 | 3,332 | 2,266 | 17,145 | |
Cardiovascular, Renal & Metabolism: | |||||||||||||||
Farxiga | 1,730 | 3,324 | 2,941 | 405 | 8,400 | 1,750 | 2,853 | 2,634 | 419 | 7,656 | 1,451 | 2,211 | 1,881 | 420 | 5,963 |
Crestor | 45 | 1,041 | 1 | 129 | 1,216 | 46 | 934 | 37 | 136 | 1,153 | 55 | 862 | 52 | 138 | 1,107 |
Brilinta | 393 | 273 | 147 | 10 | 823 | 751 | 294 | 268 | 20 | 1,333 | 744 | 285 | 271 | 24 | 1,324 |
Lokelma | 301 | 129 | 129 | 139 | 698 | 256 | 86 | 92 | 108 | 542 | 214 | 50 | 58 | 90 | 412 |
Seloken | – | 586 | 18 | 3 | 607 | – | 589 | 13 | 3 | 605 | 1 | 621 | 11 | 7 | 640 |
Roxadustat | – | 274 | – | – | 274 | – | 331 | – | – | 331 | – | 271 | – | – | 271 |
Wainua | 204 | 4 | 4 | – | 212 | 85 | – | – | – | 85 | – | – | – | – | – |
Others | 49 | 262 | 158 | 65 | 534 | 187 | 252 | 226 | 78 | 743 | 287 | 286 | 230 | 65 | 868 |
2,722 | 5,893 | 3,398 | 751 | 12,764 | 3,075 | 5,339 | 3,270 | 764 | 12,448 | 2,752 | 4,586 | 2,503 | 744 | 10,585 | |
Respiratory & Immunology: | |||||||||||||||
Symbicort | 1,193 | 801 | 560 | 331 | 2,885 | 1,187 | 805 | 559 | 328 | 2,879 | 726 | 753 | 549 | 334 | 2,362 |
Fasenra | 1,195 | 117 | 482 | 187 | 1,981 | 1,049 | 92 | 404 | 144 | 1,689 | 992 | 64 | 355 | 142 | 1,553 |
Breztri | 614 | 298 | 191 | 96 | 1,199 | 516 | 245 | 143 | 74 | 978 | 383 | 161 | 81 | 52 | 677 |
Tezspire | – | 40 | 297 | 121 | 458 | – | 11 | 156 | 81 | 248 | – | 1 | 48 | 37 | 86 |
Saphnelo | 596 | 16 | 49 | 25 | 686 | 425 | 7 | 26 | 16 | 474 | 260 | 2 | 8 | 10 | 280 |
Pulmicort | 5 | 414 | 63 | 36 | 518 | 6 | 568 | 71 | 37 | 682 | 28 | 575 | 68 | 42 | 713 |
Airsupra | 162 | 4 | – | – | 166 | 66 | – | – | – | 66 | 2 | – | – | – | 2 |
Others | 75 | 133 | 59 | 7 | 274 | 167 | 169 | 57 | 7 | 400 | 156 | 215 | 55 | 8 | 434 |
3,840 | 1,823 | 1,701 | 803 | 8,167 | 3,416 | 1,897 | 1,416 | 687 | 7,416 | 2,547 | 1,771 | 1,164 | 625 | 6,107 | |
Vaccines & Immune Therapies: | |||||||||||||||
Beyfortus | 184 | – | 94 | 3 | 281 | 232 | – | 84 | 2 | 318 | 87 | – | 19 | – | 106 |
Synagis | (3) | 214 | 50 | 31 | 292 | (8) | 210 | 116 | 129 | 447 | (1) | 195 | 175 | 177 | 546 |
FluMist | 28 | 5 | 210 | 29 | 272 | 28 | 1 | 204 | 25 | 258 | 23 | 1 | 188 | 4 | 216 |
Others | – | 1 | – | – | 1 | 28 | 2 | 5 | – | 35 | – | 16 | 14 | 114 | 144 |
209 | 220 | 354 | 63 | 846 | 280 | 213 | 409 | 156 | 1,058 | 109 | 212 | 396 | 295 | 1,012 | |
Rare Disease: | |||||||||||||||
Ultomiris | 2,667 | 261 | 1,053 | 737 | 4,718 | 2,261 | 141 | 884 | 638 | 3,924 | 1,750 | 71 | 668 | 476 | 2,965 |
Soliris | 1,092 | 405 | 200 | 140 | 1,837 | 1,523 | 443 | 416 | 206 | 2,588 | 1,734 | 424 | 670 | 317 | 3,145 |
Strensiq | 1,332 | 104 | 123 | 119 | 1,678 | 1,167 | 54 | 99 | 96 | 1,416 | 937 | 40 | 89 | 86 | 1,152 |
Koselugo | 219 | 228 | 161 | 54 | 662 | 212 | 177 | 103 | 39 | 531 | 195 | 59 | 53 | 24 | 331 |
Others | 113 | 40 | 67 | 11 | 231 | 100 | 34 | 66 | 9 | 209 | 85 | 29 | 49 | 8 | 171 |
5,423 | 1,038 | 1,604 | 1,061 | 9,126 | 5,263 | 849 | 1,568 | 988 | 8,668 | 4,701 | 623 | 1,529 | 911 | 7,764 | |
Other: | |||||||||||||||
Nexium | 67 | 611 | 50 | 88 | 816 | 96 | 591 | 60 | 120 | 867 | 115 | 578 | 53 | 199 | 945 |
Others | (4) | 121 | 34 | 5 | 156 | 15 | 144 | 43 | 4 | 206 | 18 | 153 | 52 | 8 | 231 |
63 | 732 | 84 | 93 | 972 | 111 | 735 | 103 | 124 | 1,073 | 133 | 731 | 105 | 207 | 1,176 | |
Product Sales | 23,444 | 15,056 | 12,021 | 5,052 | 55,573 | 21,655 | 13,535 | 10,848 | 4,900 | 50,938 | 17,961 | 11,751 | 9,029 | 5,048 | 43,789 |
Strategic Report
Corporate Governance
Financial Statements
Sustainability Statement
Additional Information
Financial Statements | Notes to the Group Financial Statements
AstraZeneca
Annual Report & Form 20-F Information 2025
141
SE
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 2025 was 0.7% (2024: 0.6%; 2023: 1.0%); this represents
the difference between our prior year estimates for rebates and chargebacks against actual amounts paid for the US business. The most
significant of these relate to the Medicaid and state programmes with an adjustment in respect of prior year net US Product Sales in 2025 of 0.2%
(2024: 0.1%; 2023: 0.3%) and Managed Care and Medicare of 0.4% (2024: 0.6%; 2023: 0.5%
).
The adjustment in respect of the prior year net US Product Sales, excluding the Rare Disease therapy area in 2025, was 0.9% (2024: 0.8%;
2023: 1.4%), with Medicaid and state programmes of 0.2% (2024: 0.1%; 2023: 0.4%
) and Managed Care and Medicare of 0.5% (2024: 0.7%;
2023: 0.7%).
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
2025 | 2024 | 2023 | |
$m | $m | $m | |
Enhertu | 1,798 | 1,437 | 1,022 |
Tezspire | 673 | 436 | 259 |
Beyfortus | 422 | 237 | 57 |
Datroway | 77 | – | – |
Other royalty income | 92 | 91 | 81 |
Other Alliance Revenue | 5 | 11 | 9 |
3,067 | 2,212 | 1,428 |
Collaboration Revenue
2025 | 2024 | 2023 | |
$m | $m | $m | |
Farxiga : sales milestones | 87 | 56 | 29 |
Lynparza : sales milestone | – | 600 | – |
Beyfortus : sales milestones | – | 167 | 27 |
Koselugo : sales milestone | – | 100 | – |
Lynparza : regulatory milestones | – | – | 245 |
COVID-19 mAbs: licence fees | – | – | 180 |
Beyfortus : regulatory milestones | – | – | 71 |
tralokinumab: sales milestones | – | – | 20 |
Other Collaboration Revenue | 12 | – | 22 |
99 | 923 | 594 |
Operating profit includes the following significant items:
In 2025, Cost of sales includes a charge of $25m (2024: $nil; 2023: $114m) in relation to the release, in line with sales, of fair value uplift to
In 2025, Selling, general and administrative expense includes a credit of $44m (2024: charge of $260m; 2023: charge of $520m) resulting from
changes in the fair value of contingent consideration arising from the acquisition of the diabetes alliance from Bristol-Myers Squibb Company
(BMS). These adjustments reflect revised estimates for future sales performance for the products acquired and, as a result, revised estimates
for future royalties payable.
In 2025, Selling, general and administrative expense also includes a charge of $218m (2024: $48m; 2023: $1,013m) relating to a number of legal
During the year $nil (2024: $nil; 2023: $74m) of government grants were recognised within Research and development expense relating
to
Vaxzevria
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Corporate Governance
Financial Statements
Sustainability Statement
Additional Information
Financial Statements
AstraZeneca
Annual Report & Form 20-F Information 2025
142
Notes to the Group Financial Statements
continued
3 Operating profit
continued
Depreciation, impairment, amortisation and provision charges
The following items have been included in Operating profit:
2025 | 2024 | 2023 | |
$m | $m | $m | |
Depreciation of Property, plant and equipment (Note 8) | 879 | 799 | 733 |
Impairment of Property, plant and equipment (Note 8) | 13 | 42 | 8 |
Depreciation of Right-of-use assets (Note 9) | 404 | 343 | 275 |
Impairment of Right-of-use assets (Note 9) | – | 7 | 14 |
Amortisation of Intangible assets (Note 11) | 4,207 | 3,923 | 3,926 |
Net impairment of Intangible assets (Note 11) | 230 | 1,574 | 434 |
Net charges to Provisions, net of reversals (Note 21) | 541 | 513 | 1,313 |
2025 | 2024 | 2023 | |
$m | $m | $m | |
Royalty income | 160 | 103 | 107 |
Gains on disposal of Intangible assets | 168 | 64 | 251 |
Net (losses)/gains on disposal of other non-current assets | (14) | (4) | 41 |
Update to the contractual relationships for Beyfortus | – | – | 712 |
Other income 1 | 201 | 210 | 393 |
Other expense | (134) | (121) | (164) |
Other operating income and expense | 381 | 252 | 1,340 |
1
Other income in 2025 includes $nil of income from Allergan Plc. in respect of the development of brazikumab (2024: $nil; 2023: $75m).
Gains on disposal of intangible assets in 2023 includes $241m on disposal of commercial rights to
Pulmicort
Flexhaler to Cheplapharm
Arzneimittel GmbH in the US.
As part of the total consideration received in respect of the agreement to sell US rights to
Synagis
in 2019, $400m in total was received
related to the rights to participate in the future cash flows from the US profits or losses for
Beyfortus
, with $190m cash inflows in 2023 primarily
relating to a cash receipt from Swedish Orphan Biovitrum AB (Sobi) following achievement of a regulatory milestone. All associated cash
flows have been presented within investing activities as the Group has received the cash in exchange for agreeing to transfer future cash
flows relating to an intangible asset. In 2023, the contractual relationship between AstraZeneca and Sobi relating to future sales of
Beyfortus
in the US was replaced by a royalty relationship between Sanofi Pasteur, Inc. and Sobi. As a result, in 2023 the Profit Participation Liability
was extinguished and derecognised from the Consolidated Statement of Financial Position, with a gain of $712m recorded in Other operating
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 undertook 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 2025, the Group has incurred $237m of restructuring costs, of which $232m resulted from activities that are part of the PAAGR, bringing
the cumulative charges under this programme to $3,414m. Costs in 2025 included a $138m credit to Cost of sales primarily due to the reversal
of inventory and related product provisions related to
Andexxa
following the decision to cease promotional activities, $209m expense within
Selling, general and administrative expense in relation to severance, HR, Finance, IT and other integration costs and $171m expense within
Research and development expense in relation to severance as well as the transformation of clinical, regulatory and other R&D data and systems.
:
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.
2025 | 2024 | 2023 | |
$m | $m | $m | |
Cost of sales | (138) | 569 | 109 |
Research and development expense | 171 | 275 | 212 |
Selling, general and administrative expense | 209 | 312 | 207 |
Other operating income and expense | (5) | (2) | (61) |
Total charge | 237 | 1,154 | 467 |
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Corporate Governance
Financial Statements
Sustainability Statement
Additional Information
Financial Statements | Notes to the Group Financial Statements
AstraZeneca
Annual Report & Form 20-F Information 2025
143
2025 | 2024 | 2023 | |
$m | $m | $m | |
Severance costs | 100 | 213 | 57 |
Accelerated depreciation and impairment charges | 11 | 64 | 68 |
Other 1 | 126 | 877 | 342 |
Total charge | 237 | 1,154 | 467 |
1
Other costs are those incurred in designing and implementing the Group’s various restructuring initiatives. In 2024, Other costs included $480m for inventory and related product provisions
related to
Andexxa
following the decision to cease promotional activities which were partly reversed in 2025 following revised sales forecasts. In 2025, Other costs include the costs of
integrating systems, structure and processes as part of the PAAGR, costs relating to the Alexion acquisition, internal project costs and external service fees.
Included within Operating profit are the following net gains and losses on financial instruments:
2025 | 2024 | 2023 | |
$m | $m | $m | |
Gains/(losses) on forward foreign exchange contracts | 190 | (81) | 42 |
Losses on receivables and payables | (190) | (143) | (260) |
Total | – | (224) | (218) |
2025 | 2024 | 2023 | |
$m | $m | $m | |
Finance income | |||
Returns on deposits and equity securities | 280 | 339 | 291 |
Fair value gains on debt and interest rate swaps | – | 113 | 43 |
Interest income on income tax balances | 80 | 6 | 10 |
Total | 360 | 458 | 344 |
Finance expense | |||
Interest on debt, leases and other financing costs | (1,335) | (1,391) | (1,132) |
Net interest on post-employment defined benefit plan net liabilities (Note 22) | (51) | (50) | (38) |
Net exchange losses | (31) | (42) | (34) |
Discount unwind on contingent consideration arising from business combinations (Note 20) | (60) | (113) | (132) |
Discount unwind on other long-term liabilities 1 | (138) | (116) | (200) |
Fair value losses on debt and interest rate swaps | (49) | (18) | (3) |
Interest expense on income tax balances | (30) | (12) | (87) |
Total | (1,694) | (1,742) | (1,626) |
Net finance expense | (1,334) | (1,284) | (1,282) |
1
Included within Discount unwind on other long-term liabilities is $nil relating to the Acerta Pharma B.V. (Acerta Pharma) share purchase liability (2024: $nil; 2023: $55m) and the discount
unwind of other payables of $116m (2024: $91m; 2023: $100m) that have arisen from intangible asset additions, see Note 20 for further details.
There was no interest capitalised during the year.
Included within Finance income and expense are the following net gains and losses on financial instruments:
2025 | 2024 | 2023 | |
$m | $m | $m | |
Interest and fair value adjustments in respect of debt designated at fair value through profit or loss, net of derivatives | (46) | 107 | 13 |
Interest and changes in carrying values of debt designated as hedged items in fair value hedges, net of derivatives | (76) | (38) | – |
Interest and fair value changes on fixed and short-term deposits, equity securities, other derivatives and tax balances | 314 | 306 | 177 |
Interest on debt, commercial paper, overdrafts and lease liabilities held at amortised cost | (1,177) | (1,251) | (1,004) |
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 $nil (2024
: $nil; 2023
: loss of $1m) and debt
$nil (2024: $nil; 2023
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Sustainability Statement
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AstraZeneca
Annual Report & Form 20-F Information 2025
144
Notes to the Group Financial Statements
continued
Taxation charge/(credit) recognised in the Consolidated Statement of Comprehensive Income is as follows:
2025 | 2024 | 2023 | |
$m | $m | $m | |
Current tax | |||
Current year | 2,199 | 2,314 | 2,417 |
Pillar Two income tax charge | 194 | 238 | – |
Adjustment to prior years | (60) | (107) | 28 |
Total | 2,333 | 2,445 | 2,445 |
Deferred tax | |||
Origination and reversal of temporary differences | (117) | (818) | (1,473) |
Adjustment to prior years | (47) | 23 | (34) |
Total | (164) | (795) | (1,507) |
Taxation charge recognised in the profit for the year | 2,169 | 1,650 | 938 |
Taxation (charge)/credit recognised in Other comprehensive income is as follows:
2025 | 2024 | 2023 | |
$m | $m | $m | |
Current and deferred tax | |||
Items that will not be reclassified to profit and loss: | |||
Remeasurement of the defined benefit liability | (69) | (23) | 102 |
Equity investments measured at fair value through Other comprehensive income | (25) | (20) | (1) |
Total | (94) | (43) | 101 |
Items that may be reclassified subsequently to profit and loss: | |||
Foreign exchange arising on designated liabilities in net investment hedges | (66) | 28 | (24) |
Fair value movement on cash flow hedges | 16 | (3) | 12 |
Total | (50) | 25 | (12) |
Taxation (charge)/credit recognised in Other comprehensive income | (144) | (18) | 89 |
The reported tax rate in the year was 18%.
Taxation has been provided at current rates on the profits earned for the years covered by the Group Financial Statements.
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:
2025 | 2024 | 2023 | |
$m | $m | $m | |
Profit before tax | 12,402 | 8,691 | 6,899 |
Notional taxation charge at UK corporation tax rate of 25% (2024: 25%; 2023: 23.5%) | 3,101 | 2,173 | 1,621 |
Differences in effective overseas tax rates | (168) | (60) | (224) |
Deferred tax credit relating to change in tax rates 1 | (23) | (24) | (66) |
Unrecognised deferred tax asset 2 | 86 | 104 | 341 |
Items not deductible for tax purposes | 101 | 64 | 46 |
Intellectual Property incentive regimes 3 | (655) | (561) | (367) |
Pillar Two income taxes | 194 | 238 | – |
Other items 4 | (360) | (200) | (406) |
Adjustments to prior periods | (107) | (84) | (7) |
Total tax charge for the year | 2,169 | 1,650 | 938 |
1
The 2023 item relates to the impact of the difference in the UK current and deferred tax rates during 2023.
2
This includes the non-recognition of deferred tax assets where it is not probable that there will be sufficient forecast future profits to utilise the assets.
3
The Group receives intellectual property incentives in certain jurisdictions.
4
Other items in 2025 includes the release of tax provisions due to updates to estimates of prior period tax liabilities following settlements with tax authorities and the expiry of the relevant
statute of limitations, and the impact of internal transfers of assets. Other items in 2024 includes a net credit following internal transfers of assets. Other items in 2023 include a favourable
adjustment of $828m to deferred taxes arising from a UK company undertaking an intragroup purchase of certain intellectual property offset by a charge of $422m mainly relating to
updates to tax liabilities following progress of reviews by tax authorities, administrative appeal processes and adjustments arising on expiry of the relevant statute of limitations (see
Note 30 for more details).
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.
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Sustainability Statement
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AstraZeneca
Annual Report & Form 20-F Information 2025
145
Current tax
Current income tax balances on the Statement of Financial Position as at 31 December are as follows:
2025 | 2024 | |
$m | $m | |
Non-current income tax receivable | 1,391 | – |
Current income tax receivable | 1,158 | 1,859 |
Total income tax receivable | 2,549 | 1,859 |
Current income tax payable | (1,084) | (1,406) |
Non-current income tax payable | (700) | (238) |
Total income tax payable | (1,784) | (1,644) |
Net income tax receivable | 765 | 215 |
Management assesses at each balance sheet date whether income tax receivables and payables will be realisable within 12 months. Amounts
expected to be realisable after 12 months are reflected as non-current income tax receivables and payables.
The total movement in the net deferred tax balance in the year was $277m. The movements are as follows:
Intangibles, | Elimination of | Losses and | |||||
Property, plant | unrealised profit | Untaxed | tax credits | Accrued | |||
and equipment | on inventory | reserves 1 | carried forward | expenses | Other | Total | |
$m | $m | $m | $m | $m | $m | $m | |
Net deferred tax balance at 1 January 2024 | (2,491) | 2,386 | (660) | 1,106 | 889 | 644 | 1,874 |
Income statement | 803 | 238 | (186) | 36 | 74 | (170) | 795 |
Other comprehensive income | 34 | – | – | – | – | (42) | (8) |
Equity | – | – | – | – | – | (28) | (28) |
Additions and disposals | (605) | – | – | 127 | 2 | (1) | (477) |
Exchange | 93 | (152) | 68 | (70) | (40) | (13) | (114) |
Net deferred tax balance at 31 December 2024 | (2,166) | 2,472 | (778) | 1,199 | 925 | 390 | 2,042 |
Income statement | 33 | 45 | (46) | 87 | 52 | (7) | 164 |
Other comprehensive income | (32) | – | – | – | – | (59) | (91) |
Equity | – | – | – | – | – | 105 | 105 |
Exchange | (92) | 162 | (147) | 105 | 46 | 25 | 99 |
Net deferred tax balance at 31 December 2025 2 | (2,257) 3 | 2,679 | (971) | 1,391 | 1,023 | 454 | 2,319 |
1
Untaxed reserves relate to taxable profits where the tax liability is deferred to later periods.
2
The Group recognises deferred tax assets to the extent that there are either taxable temporary differences or that it is probable that sufficient future taxable profits will arise, against which
these deductible temporary differences can be utilised. The US includes a net deferred tax asset of $94m as at 31 December 2025 which includes tax losses and other deductible temporary
differences. The Group has performed an assessment of recovery of deferred tax assets and the Group has forecasted future taxable profits for relevant entities and considers that it is
probable that sufficient future taxable profits will arise against which these deductible temporary differences can be utilised within 10 years. In arriving at these forecasts, the Group has
reviewed the Group-level budgets and forecasts and the ability of relevant entities to generate future income from developing and commercialising products. Assessing the availability
of future taxable income to support recognition of deferred tax assets relies upon our Group forecasts and changes in these Group forecasts will impact the recoverability of deferred
tax assets. To the extent that there are neither taxable temporary differences nor sufficient taxable profits, no deferred tax asset is recognised and details of unrecognised deferred tax
assets are included in the table below.
3
Includes deferred tax assets of $178m on liabilities in respect of intangibles and $327m on lease liabilities in respect of right-of-use assets.
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 | Total | |
$m | $m | $m | $m | $m | $m | $m | |
Deferred tax assets at 31 December 2024 | 1,781 | 2,472 | – | 1,221 | 1,039 | 688 | 7,201 |
Deferred tax liabilities at 31 December 2024 | (3,947) | – | (778) | (22) | (114) | (298) | (5,159) |
Net deferred tax balance at 31 December 2024 | (2,166) | 2,472 | (778) | 1,199 | 925 | 390 | 2,042 |
Deferred tax assets at 31 December 2025 | 2,020 | 2,679 | 3 | 1,424 | 1,201 | 672 | 7,999 |
Deferred tax liabilities at 31 December 2025 | (4,277) | – | (974) | (33) | (178) | (218) | (5,680) |
Net deferred tax balance at 31 December 2025 | (2,257) | 2,679 | (971) | 1,391 | 1,023 | 454 | 2,319 |
Analysed in the Consolidated Statement of Financial Position, after offset of balances within countries, as follows:
2025 | 2024 | |
$m | $m | |
Deferred tax assets | 5,819 | 5,347 |
Deferred tax liabilities | (3,500) | (3,305) |
Net deferred tax balance | 2,319 | 2,042 |
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Notes to the Group Financial Statements
continued
5 Taxation
continued
Unrecognised deferred tax assets
Deferred tax assets (DTA) of $1,738m (2024: $1,523m) have not been recognised in respect of deductible temporary differences because it is
not probable that future taxable profit will be available against which the Group can utilise the benefits therefrom.
2025 | 2025 | 2024 | 2024 | |
Temporary | Unrecognised | Temporary | Unrecognised | |
differences | DTA | differences | DTA | |
$m | $m | $m | $m | |
Temporary differences expiring: | ||||
Within 10 years | 409 | 81 | 161 | 37 |
More than 10 years | 152 | 32 | 217 | 46 |
Indefinite | 4,460 | 885 | 3,883 | 816 |
5,021 | 998 | 4,261 | 899 | |
Tax credits and State tax losses expiring: | ||||
Within 10 years | 137 | 162 | ||
More than 10 years | 386 | 373 | ||
Indefinite | 217 | 89 | ||
740 | 624 | |||
Total | 1,738 | 1,523 |
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
$8,460m at 31 December 2025, $3,657m of which has a corresponding deductible temporary difference of the same gross value which is not
2025 | 2024 | 2023 | |
Profit for the year attributable to equity holders ($m) | 10,225 | 7,035 | 5,955 |
Basic earnings per Ordinary Share | $6.60 | $4.54 | $3.84 |
Diluted earnings per Ordinary Share | $6.54 | $4.50 | $3.81 |
Weighted average number of Ordinary Shares in issue for basic earnings (millions) | 1,550 | 1,550 | 1,549 |
Dilutive impact of share incentive awards outstanding (millions) | 12 | 13 | 13 |
Diluted weighted average number of Ordinary Shares in issue (millions) | 1,562 | 1,563 | 1,562 |
The earnings figures used in the calculations above are post-tax. The weighted average number of Ordinary Shares in issue is calculated by
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The Group has reviewed its assessment of reportable segments under IFRS 8 ‘Operating Segments’ and concluded that the Group continues
to have one reportable segment.
KJ
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.
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.
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 | |||
2025 | 2024 | 2023 | |
$m | $m | $m | |
UK | 4,359 | 4,740 | 3,368 |
Rest of Europe | |||
France | 1,408 | 1,283 | 1,152 |
Germany | 2,890 | 2,524 | 2,099 |
Italy | 1,078 | 949 | 813 |
Spain | 1,136 | 994 | 847 |
Sweden | 2,623 | 2,290 | 1,704 |
Others | 4,320 | 3,663 | 3,110 |
13,455 | 11,703 | 9,725 | |
The Americas | |||
Canada | 954 | 937 | 967 |
US | 23,970 | 21,806 | 18,121 |
Others | 2,633 | 2,246 | 1,683 |
27,557 | 24,989 | 20,771 | |
Asia, Africa & Australasia | |||
Australia | 454 | 439 | 390 |
China | 6,636 | 6,419 | 5,872 |
Japan | 3,556 | 3,452 | 3,640 |
Others | 2,722 | 2,331 | 2,045 |
13,368 | 12,641 | 11,947 | |
Total Revenue | 58,739 | 54,073 | 45,811 |
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Notes to the Group Financial Statements
continued
7 Segment information
continued
Total Revenue outside of the UK totalled $54,380m for the year ended 31 December 2025 (2024: $49,333m; 2023: $42,443m).
Operating profit | Profit/(loss) before tax | |||||
2025 | 2024 | 2023 | 2025 | 2024 | 2023 | |
$m | $m | $m | $m | $m | $m | |
UK | 7,066 | 2,680 | 665 | 6,152 | 1,349 | (577) |
Rest of Europe | 5,233 | 5,924 | 4,885 | 5,468 | 6,057 | 4,999 |
The Americas | 440 | 423 | 1,495 | (213) | 318 | 1,328 |
Asia, Africa & Australasia | 1,004 | 976 | 1,148 | 995 | 967 | 1,149 |
Continuing operations | 13,743 | 10,003 | 8,193 | 12,402 | 8,691 | 6,899 |
Non-current assets 1 | Total assets | |||
2025 | 2024 | 2025 | 2024 | |
$m | $m | $m | $m | |
UK | 10,328 | 8,699 | 21,983 | 20,139 |
Rest of Europe | 31,974 | 30,654 | 41,596 | 37,884 |
The Americas | 29,714 | 28,730 | 42,201 | 38,544 |
Asia, Africa & Australasia | 2,409 | 2,181 | 8,294 | 7,468 |
Continuing operations | 74,425 | 70,264 | 114,074 | 104,035 |
Assets acquired 2 | Net operating assets 3 | |||
2025 | 2024 | 2025 | 2024 | |
$m | $m | $m | $m | |
UK | 1,759 | 582 | 7,936 | 7,173 |
Rest of Europe | 2,814 | 2,225 | 33,217 | 30,852 |
The Americas | 1,877 | 3,925 | 26,374 | 24,501 |
Asia, Africa & Australasia | 557 | 1,394 | 2,764 | 2,602 |
Continuing operations | 7,007 | 8,126 | 70,291 | 65,128 |
1
Non-current assets exclude Deferred tax assets, Income tax receivable, Derivative financial instruments, certain other financial assets and post-employment benefit assets.
2
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).
3
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 | ||
2025 | 2024 | |
$m | $m | |
UK | 3,138 | 2,847 |
Ireland | 1,645 | 1,323 |
Sweden | 2,282 | 1,692 |
US | 3,558 | 2,856 |
Rest of the world | 2,339 | 1,534 |
Continuing operations | 12,962 | 10,252 |
Geographic markets
The table below shows Product Sales in each geographic market in which customers are located.
2025 | 2024 | 2023 | |
$m | $m | $m | |
UK | 1,111 | 1,314 | 978 |
Rest of Europe | 12,412 | 10,686 | 8,201 |
The Americas | 27,273 | 25,081 | 20,855 |
Asia, Africa & Australasia | 14,777 | 13,857 | 13,755 |
Continuing operations | 55,573 | 50,938 | 43,789 |
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. Two wholesalers (2024: one; 2023: one) individually represented greater than 10% of Product Sales. The value of
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Assets in | Total Property, | |||
Land and | Plant and | course of | plant and | |
buildings | equipment | construction | equipment | |
$m | $m | $m | $m | |
Cost | ||||
At 1 January 2024 | 6,469 | 8,704 | 2,045 | 17,218 |
Additions through business combinations (Note 27) | 1 | 15 | 2 | 18 |
Capital expenditure | 27 | 63 | 1,905 | 1,995 |
Transfer of assets into use | 312 | 729 | (1,041) | – |
Disposals and other movements | (44) | (271) | (40) | (355) |
Exchange adjustments | (185) | (386) | (82) | (653) |
At 31 December 2024 | 6,580 | 8,854 | 2,789 | 18,223 |
Additions through business combinations (Note 27) | 3 | 2 | – | 5 |
Capital expenditure | 25 | 91 | 2,811 | 2,927 |
Transfer of assets into use | 278 | 779 | (1,057) | – |
Disposals and other movements | (35) | (172) | 1 | (206) |
Exchange adjustments | 389 | 766 | 196 | 1,351 |
At 31 December 2025 | 7,240 | 10,320 | 4,740 | 22,300 |
Depreciation and impairment | ||||
At 1 January 2024 | 2,765 | 5,051 | – | 7,816 |
Depreciation charge for the year | 231 | 568 | – | 799 |
Impairment charge | – | (7) | 49 | 42 |
Disposals and other movements | (39) | (252) | (49) | (340) |
Exchange adjustments | (101) | (245) | – | (346) |
At 31 December 2024 | 2,856 | 5,115 | – | 7,971 |
Depreciation charge for the year | 249 | 630 | – | 879 |
Impairment charge | 4 | 8 | 1 | 13 |
Disposals and other movements | (32) | (148) | (1) | (181) |
Exchange adjustments | 188 | 468 | – | 656 |
At 31 December 2025 | 3,265 | 6,073 | – | 9,338 |
Net book value | ||||
At 31 December 2024 | 3,724 | 3,739 | 2,789 | 10,252 |
At 31 December 2025 | 3,975 | 4,247 | 4,740 | 12,962 |
2025 | 2024 | |
$m | $m | |
The net book value of land and buildings comprised: | ||
Freeholds | 3,564 | 3,329 |
Leaseholds | 411 | 395 |
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Notes to the Group Financial Statements
continued
Right-of-use assets
Total | ||||
Land and | Motor | Right-of-use | ||
buildings | vehicles | Other | assets | |
$m | $m | $m | $m | |
Cost | ||||
At 1 January 2024 | 1,352 | 495 | 36 | 1,883 |
Additions through business combinations (Note 27) | 20 | – | – | 20 |
Additions – separately acquired | 332 | 342 | 18 | 692 |
Disposals and other movements | (73) | (140) | (5) | (218) |
Exchange adjustments | (43) | (33) | (2) | (78) |
At 31 December 2024 | 1,588 | 664 | 47 | 2,299 |
Additions through business combinations (Note 27) | 1 | – | – | 1 |
Additions – separately acquired | 362 | 215 | 10 | 587 |
Disposals and other movements | 29 | (91) | – | (62) |
Exchange adjustments | 68 | 48 | 4 | 120 |
At 31 December 2025 | 2,048 | 836 | 61 | 2,945 |
Depreciation and impairment | ||||
At 1 January 2024 | 549 | 215 | 19 | 783 |
Depreciation charge for the year | 183 | 151 | 9 | 343 |
Impairment charge | 7 | – | – | 7 |
Disposals and other movements | (71) | (115) | (6) | (192) |
Exchange adjustments | (22) | (14) | (1) | (37) |
At 31 December 2024 | 646 | 237 | 21 | 904 |
Depreciation charge for the year | 205 | 188 | 11 | 404 |
Disposals and other movements | (65) | (93) | 2 | (156) |
Exchange adjustments | 29 | 21 | 2 | 52 |
At 31 December 2025 | 815 | 353 | 36 | 1,204 |
Net book value | ||||
At 31 December 2024 | 942 | 427 | 26 | 1,395 |
At 31 December 2025 | 1,233 | 483 | 25 | 1,741 |
Lease liabilities
2025 | 2024 | |
$m | $m | |
The present value of lease liabilities is as follows: | ||
Within one year | (382) | (339) |
Later than one year and not later than five years | (991) | (825) |
Later than five years | (430) | (288) |
Total lease liabilities | (1,803) | (1,452) |
The interest expense on lease liabilities included within Finance expense was $80m (2024: $61m; 2023: $33m).
The total cash outflow for leases in 2025 was $452m (2024: $377m; 2023: $301m).
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 $1,702m as of 31 December 2025. Of this value, $1,348m relates to a property lease in the US which is expected
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2025 | 2024 | |
$m | $m | |
Cost | ||
At 1 January | 21,335 | 20,361 |
Additions through business combinations (Note 27) | – | 1,083 |
Exchange and other adjustments | 223 | (109) |
At 31 December | 21,558 | 21,335 |
Amortisation and impairment losses | ||
At 1 January | 310 | 313 |
Exchange and other adjustments | 6 | (3) |
At 31 December | 316 | 310 |
Net book value | ||
At 31 December | 21,242 | 21,025 |
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 7, 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 2025
Product, | Software | |||
marketing and | Other | development | ||
distribution rights | intangibles | costs | Total | |
$m | $m | $m | $m | |
Cost | ||||
At 1 January 2024 | 69,207 | 2,707 | 1,575 | 73,489 |
Additions through business combinations (Note 27) | 2,308 | 56 | – | 2,364 |
Additions – separately acquired | 2,226 | 150 | 290 | 2,666 |
Disposals | (294) | – | (285) | (579) |
Exchange and other adjustments | (964) | (13) | (50) | (1,027) |
At 31 December 2024 | 72,483 | 2,900 | 1,530 | 76,913 |
Additions through business combinations (Note 27) | 50 | – | – | 50 |
Additions – separately acquired | 3,392 | 170 | 463 | 4,025 |
Disposals | (312) | (128) | (8) | (448) |
Exchange and other adjustments | 2,151 | 131 | 118 | 2,400 |
At 31 December 2025 | 77,764 | 3,073 | 2,103 | 82,940 |
Amortisation and impairment losses | ||||
At 1 January 2024 | 32,266 | 2,061 | 1,073 | 35,400 |
Amortisation for year | 3,761 | 78 | 84 | 3,923 |
Impairment charges | 1,577 | 3 | 2 | 1,582 |
Impairment reversals | (8) | – | – | (8) |
Disposals | (286) | – | (283) | (569) |
Exchange and other adjustments | (561) | (13) | (18) | (592) |
At 31 December 2024 | 36,749 | 2,129 | 858 | 39,736 |
Amortisation for year | 3,928 | 181 | 98 | 4,207 |
Impairment charges | 218 | 12 | – | 230 |
Disposals | (312) | (128) | (8) | (448) |
Exchange and other adjustments | 1,247 | 61 | 61 | 1,369 |
At 31 December 2025 | 41,830 | 2,255 | 1,009 | 45,094 |
Net book value | ||||
At 31 December 2024 | 35,734 | 771 | 672 | 37,177 |
At 31 December 2025 | 35,934 | 818 | 1,094 | 37,846 |
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 accrued in Other payables of $1,624m (2024: $365m), relating to deferred payments
and other non-cash consideration for the acquisition of Product, marketing and distribution rights, which are not reflected in the current year
Consolidated Statement of Cash Flows. Disposals include amounts related to fully amortised or impaired assets that are no longer in use by
the Group.
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11 Intangible assets
continued
Notes to the Group Financial Statements
continued
Product, | Software | |||
marketing and | Other | development | ||
distribution rights | intangibles | costs | Total | |
$m | $m | $m | $m | |
Year ended 31 December 2023 | ||||
Cost of sales | 32 | – | – | 32 |
Research and development expense | – | 28 | – | 28 |
Selling, general and administrative expense | 3,739 | 47 | 80 | 3,866 |
Total | 3,771 | 75 | 80 | 3,926 |
Year ended 31 December 2024 | ||||
Cost of sales | 32 | 1 | – | 33 |
Research and development expense | 3 | 22 | – | 25 |
Selling, general and administrative expense | 3,726 | 55 | 84 | 3,865 |
Total | 3,761 | 78 | 84 | 3,923 |
Year ended 31 December 2025 | ||||
Cost of sales | 32 | – | 54 | 86 |
Research and development expense | – | 26 | 21 | 47 |
Selling, general and administrative expense | 3,896 | 155 | 22 | 4,073 |
Other operating income and expense | – | – | 1 | 1 |
Total | 3,928 | 181 | 98 | 4,207 |
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 2023 | ||||
Research and development expense | 417 | – | – | 417 |
Selling, general and administrative expense | 17 | – | – | 17 |
Total | 434 | – | – | 434 |
Year ended 31 December 2024 | ||||
Research and development expense | 1,065 | – | – | 1,065 |
Selling, general and administrative expense | 504 | 3 | 2 | 509 |
Total | 1,569 | 3 | 2 | 1,574 |
Year ended 31 December 2025 | ||||
Research and development expense | 210 | – | – | 210 |
Selling, general and administrative expense | 8 | 12 | – | 20 |
Total | 218 | 12 | – | 230 |
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 predominantly 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 (7.5% for 2025 and 7.5% for 2024) which is a nominal rate. There is no material difference in the
approach taken to using pre-tax cash flows and a pre-tax rate compared to post-tax cash flows and a post-tax rate, as required by IAS 36
‘Impairment of Assets’. Where fair value less costs to sell is used to determine recoverable value, the discount rate is assessed with reference
to a market participant, this is not usually materially different to the AstraZeneca post-tax weighted average cost of capital of 7.5%. Intangible
assets have been tested for impairment under the value in use basis at risk-adjusted post-tax discount rates ranging between 7.5% to 9.5%.
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SE
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.
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 2025, the Group recorded impairment charges of $8m in respect of launched products. Impairment charges recorded against products in
development totalled $210m.
In 2024, the Group recorded impairment charges of $504m in respect of launched products. Following a strategic review of our portfolio priorities,
a business decision was made to cease promotional activity for
Andexxa
resulting in impairment charges of $504m recorded against the
Andexxa
intangible asset under a value in use model applying a discount rate of 7.5% (revised carrying amount: $nil). Impairment charges
recorded against products in development totalled $1,073m. This included full impairments of vemircopan (ALXN2050, $753m, acquired
as part of the Alexion business combination in 2021), following outcome of research activities, and FPI-2059 ($165m, acquired as part of the
Fusion Pharmaceuticals, Inc. (Fusion) business combination in 2024
) due to portfolio prioritisation decisions. The remaining impairments of
$155m relate to impairments of various products in development, due to either management’s decision to discontinue development as part
of Group-wide portfolio prioritisation decisions, or due to the outcome of research activities.
In 2023, the Group recorded impairment charges of $17m in respect of launched products. Impairment charges recorded against products in
development totalled $417m, including $244m related to ALXN1840 which was fully impaired following the decision to discontinue development.
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. No impairment reversals were recorded in 2025. Impairment reversals of $8m were recorded in 2024 against products
in development. No impairment reversals were recorded in 2023.
When launched products are partially impaired, the carrying values of these assets in future periods are particularly sensitive to changes in
Significant assets
Carrying value | Remaining amortisation | |
$m | period | |
C5 franchise ( Soliris / Ultomiris ) intangible assets arising from the acquisition of Alexion | 10,981 | 2 to 10 years |
Intangible assets arising from the acquisition of Acerta Pharma | 3,371 | 7 years |
Enhertu intangible assets acquired from Daiichi Sankyo, Inc. | 3,331 | 8 years |
Strensiq , Kanuma intangible assets arising from the acquisition of Alexion | 2,846 | 7 to 13 years |
Intangible asset products in development arising from the acquisition of Alexion 1 | 1,944 | Not amortised |
Intangible assets arising from the acquisition of ZS Pharma, Inc. | 1,460 | 6 years |
Baxdrostat intangible asset acquired from CinCor Pharma, Inc. 1 | 1,291 | Not amortised |
Intangible asset products in development arising from the acquisition of Fusion 1 | 1,182 | Not amortised |
Datroway intangible assets acquired from Daiichi Sankyo, Inc. | 1,020 | 13 years |
Intangible asset products in development arising from the acquisition of Gracell Biotechnologies, Inc. 1 | 975 | Not amortised |
Intangible asset products in development arising from the acquisition of Amolyt Pharma SAS 1 | 861 | Not amortised |
Koselugo intangible asset acquired from Merck & Co., Inc. | 835 | 6 years |
Intangible asset products in development arising from the acquisition of Icosavax, Inc. 1 | 639 | Not amortised |
Airsupra intangible asset acquired from Bond Avillion 2 Development LP | 526 | 9 years |
ENaBL platform asset arising from the acquisition of EsoBiotec SA 1 | 441 | Not amortised |
1
Assets in development are not amortised but are tested annually for impairment.
In 2025, the
Koselugo
intangible asset was recognised on acquisition of the remaining 50% of global rights from Merck & Co., Inc. (MSD) following
the amendment of an existing global development and commercialisation arrangement.
The Engineered NanoBody Lentiviral (ENaBL) platform intangible asset recognised on acquisition of EsoBiotec SA in 2025 was assessed under
the optional concentration test in IFRS 3 ‘Business Combinations’ 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.
In 2024, the intangible assets recognised on acquisition of Amolyt Pharma SAS and Icosavax, Inc. were separately assessed under the optional
concentration test in IFRS 3 and were individually determined to be asset acquisitions, as substantially all of the value of the gross assets
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Annual Report & Form 20-F Information 2025
154
Notes to the Group Financial Statements
continued
2025 | 2024 | |
$m | $m | |
At 1 January | 268 | 147 |
Additions | 14 | 158 |
Share of after tax losses | (7) | (28) |
Exchange and other adjustments | 27 | (9) |
At 31 December | 302 | 268 |
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 $11m in initial funds, holds 25% board representation, and holds an 18.75% interest in the associate entity.
On 1 November 2023, AstraZeneca entered into an agreement with Cellectis S.A., 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 $80m in funds for a 22% interest in the associate entity. On 22 May 2024, a further
contribution of $140m was made for a further 22% interest. AstraZeneca holds a 44% interest in the associate entity.
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 22% interest in the associate entity and has contributed $74m in cumulative funds to date.
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 $14m in initial funds and holds a 40% interest
in the associate entity. On 21 April 2025, VaxEquity was dissolved.
All investments are accounted for using the equity method. At 31 December 2025, unrecognised losses in associates and joint ventures totalled
$209m (2024: $177m) which have not been recognised due to the investment carrying value reaching $nil value.
Aggregated summarised financial information for the associate and joint venture entities is set out below:
2025 | 2024 | |
$m | $m | |
Non-current assets | 690 | 577 |
Current assets | 756 | 508 |
Total liabilities | (553) | (516) |
Net assets | 893 | 569 |
Amount attributable to AstraZeneca | 122 | 131 |
Goodwill | 161 | 152 |
Exchange adjustments | 19 | (15) |
Carrying value of investments in associates and joint ventures | 302 | 268 |
Joint contractual arrangements were entered into between AstraZeneca and Daiichi Sankyo, Inc. (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 50:50 basis (with the exception of Japan where Daiichi Sankyo maintains
exclusive rights and AstraZeneca receives a royalty). The joint operation is not structured through a separate legal entity, and it operates from
2025 | 2024 | |
$m | $m | |
Non-current investments | ||
Equity securities at fair value through Other comprehensive income | 2,212 | 1,632 |
Equity securities at fair value through profit and loss | 11 | – |
Total | 2,223 | 1,632 |
Current investments | ||
Fixed income securities at fair value through profit or loss | 8 | 37 |
Cash collateral pledged to counterparties | 22 | 129 |
Total | 30 | 166 |
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 comprise a mixture of equity securities and 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.
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Annual Report & Form 20-F Information 2025
155
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).
2025 | 2025 | 2024 | 2024 | |
FVPL | FVOCI | FVPL | FVOCI | |
$m | $m | $m | $m | |
Level 1 | 8 | 1,765 | 37 | 1,279 |
Level 2 | – | – | – | – |
Level 3 | 11 | 447 | – | 353 |
Total | 19 | 2,212 | 37 | 1,632 |
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:
2025 | 2025 | 2024 | 2024 | |
FVPL | FVOCI | FVPL | FVOCI | |
$m | $m | $m | $m | |
At 1 January | – | 353 | – | 313 |
Additions | 11 | 124 | – | 56 |
Revaluations | – | (50) | – | (9) |
Impairments and exchange adjustments | – | 20 | – | (7) |
At 31 December | 11 | 447 | – | 353 |
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 | 148 | – | – | – | 148 |
Cross-currency swaps designated in a cash flow hedge | 34 | – | – | (71) | (37) |
Cross-currency swaps designated in a fair value hedge | – | – | – | (44) | (44) |
Forward foreign exchange designated in a cash flow hedge 1 | – | 5 | (1) | – | 4 |
Other derivatives | – | 49 | (49) | – | – |
31 December 2024 | 182 | 54 | (50) | (115) | 71 |
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 | 171 | 2 | – | – | 173 |
Cross-currency swaps designated in a cash flow hedge | 203 | – | – | – | 203 |
Cross-currency swaps designated in a fair value hedge | 124 | – | – | – | 124 |
Forward foreign exchange designated in a cash flow hedge 1 | – | 8 | (2) | – | 6 |
Other derivatives | – | 80 | (79) | – | 1 |
31 December 2025 | 498 | 90 | (81) | – | 507 |
1
Forward foreign exchange (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 at 31 December 2025 are held at fair value and fall within Level 2 of the fair value hierarchy as defined in Note 13. During 2024
the Group held an equity warrant classed as Level 3 in the fair value hierarchy, this warrant expired on 31 December 2024. No derivatives have
been reclassified within the hierarchy during the year.
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 discounted cash flow 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 one month from year end.
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:
2025
2024
Derivatives
0.7% to 3.7%
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Annual Report & Form 20-F Information 2025
156
Notes to the Group Financial Statements
continued
2025 | 2024 | |
$m | $m | |
Prepayments | 559 | 356 |
Accrued income | 75 | 60 |
Retirement benefit scheme surpluses (Note 22) | 106 | 99 |
Other receivables | 587 | 415 |
Non-current other receivables | 1,327 | 930 |
2025 | 2024 | |
$m | $m | |
Raw materials and consumables | 1,857 | 1,489 |
Inventories in process | 2,777 | 2,282 |
Finished goods and goods for resale | 1,923 | 1,517 |
Inventories | 6,557 | 5,288 |
The Group recognised $7,600m (2024: $7,001m; 2023: $6,038m) of inventories as an expense within Cost of sales during the year.
Net inventory write-downs in the year amounted to $314m (2024: $664m; 2023: $574m), principally arising from the reassessment of usage or
demand expectations prior to inventory expiration. The decreased charge in the year is due to partial reversals of $407m
Andexxa
provisions
2025 | 2024 | |
$m | $m | |
Trade receivables | 10,289 | 8,335 |
Less: Expected credit loss provision (Note 28) | (52) | (33) |
10,237 | 8,302 | |
Other receivables | 2,017 | 1,579 |
Prepayments | 2,034 | 1,737 |
Government grants receivable | 45 | 25 |
Accrued income | 844 | 1,329 |
Trade and other receivables | 15,177 | 12,972 |
Trade receivables include $2,681m (2024: $667m) measured at FVOCI classified ‘hold to collect and sell’ as they are due from customers that
the Group has the option to factor, or relate to bank acceptance drafts received in settlement of trade receivables per common practice in China.
All other financial assets included within Current trade and other receivables are held at amortised cost with carrying value being a reasonable
2025 | 2024 | 2023 | |
$m | $m | $m | |
Cash at bank and in hand | 1,332 | 1,215 | 1,325 |
Short-term deposits | 4,379 | 4,273 | 4,515 |
Cash and cash equivalents | 5,711 | 5,488 | 5,840 |
Unsecured bank overdrafts | (13) | (59) | (203) |
Cash and cash equivalents in the Consolidated Statement of Cash Flows | 5,698 | 5,429 | 5,637 |
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.
Non-cash and other movements, within operating activities in the Consolidated Statement of Cash Flows, includes:
2025 | 2024 | 2023 | |
$m | $m | $m | |
Share-based payments charge for the period (Note 29) | 719 | 660 | 579 |
Settlement of share plan awards | (353) | (618) | (650) |
Pension contributions | (186) | (166) | (188) |
Pension charges recorded in Operating profit | 65 | 86 | 55 |
Long-term provision charges recorded in Operating profit | 203 | 106 | 460 |
Loss/(gain) on disposal of Property, plant and equipment | 13 | 4 | (41) |
Update to the contractual relationships for Beyfortus | – | – | (729) |
Foreign exchange and other 1 | 201 | (193) | 128 |
Total operating activities non-cash and other movements | 662 | (121) | (386) |
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
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AstraZeneca
Annual Report & Form 20-F Information 2025
157
Repayment | 2025 | 2024 | ||
dates | $m | $m | ||
Current liabilities | ||||
Bank overdrafts | On demand | 13 | 59 | |
Other short-term borrowings excluding overdrafts | 158 | 90 | ||
Collateral received from derivative counterparties | 473 | 181 | ||
Lease liabilities | 382 | 339 | ||
3.375% Callable bond | US dollars | 2025 | – | 1,997 |
0.7% Callable bond | US dollars | 2026 | 1,200 | – |
1.2% Callable bond | US dollars | 2026 | 1,250 | – |
Other loans | Within one year | 10 | 10 | |
Total | 3,486 | 2,676 | ||
Non-current liabilities | ||||
Lease liabilities | 1,421 | 1,113 | ||
0.7% Callable bond | US dollars | 2026 | – | 1,198 |
1.2% Callable bond | US dollars | 2026 | – | 1,249 |
4.8% Callable bond | US dollars | 2027 | 1,248 | 1,247 |
3.625% Callable bond | euros | 2027 | 880 | 780 |
3.125% Callable bond | US dollars | 2027 | 749 | 748 |
4.875% Callable bond | US dollars | 2028 | 1,097 | 1,096 |
1.25% Callable bond | euros | 2028 | 936 | 829 |
1.75% Callable bond | US dollars | 2028 | 1,248 | 1,247 |
4% Callable bond | US dollars | 2029 | 997 | 996 |
4.85% Callable bond | US dollars | 2029 | 1,247 | 1,246 |
0.375% Callable bond | euros | 2029 | 936 | 829 |
4.9% Callable bond | US dollars | 2030 | 647 | 646 |
3.121% Callable bond | euros | 2030 | 764 | 682 |
1.375% Callable bond | US dollars | 2030 | 1,295 | 1,295 |
4.9% Callable bond | US dollars | 2031 | 995 | 994 |
2.25% Callable bond | US dollars | 2031 | 748 | 747 |
5.75% Non-callable bond | pounds sterling | 2031 | 469 | 438 |
3.75% Callable bond | euros | 2032 | 878 | 778 |
4.875% Callable bond | US dollars | 2033 | 497 | 497 |
3.278% Callable bond | euros | 2033 | 870 | 786 |
5% Callable bond | US dollars | 2034 | 1,490 | 1,489 |
6.45% Callable bond | US dollars | 2037 | 2,728 | 2,727 |
4% Callable bond | US dollars | 2042 | 989 | 989 |
4.375% Callable bond | US dollars | 2045 | 982 | 982 |
4.375% Callable bond | US dollars | 2048 | 738 | 738 |
2.125% Callable bond | US dollars | 2050 | 488 | 487 |
3% Callable bond | US dollars | 2051 | 736 | 735 |
Other loans | US dollars | 63 | 31 | |
Total | 26,136 | 27,619 | ||
Total interest-bearing loans and borrowings 1 | 29,622 | 30,295 |
1
All loans and borrowings above are unsecured.
Total loans and | Total loans and | Total loans and | |
borrowings | borrowings | borrowings | |
2025 | 2024 | 2023 | |
$m | $m | $m | |
At 1 January | 30,295 | 28,622 | 29,232 |
Changes from financing cash flows | |||
Issue of loans and borrowings | 15 | 6,492 | 3,816 |
Repayment of loans and borrowings | (2,029) | (4,652) | (4,942) |
Movement in short-term borrowings | 364 | (31) | 161 |
Repayment of obligations under leases | (372) | (316) | (268) |
Total changes in cash flows arising on financing activities from borrowings | (2,022) | 1,493 | (1,233) |
Movement in overdrafts | (47) | (144) | 20 |
New lease liabilities | 566 | 710 | 444 |
Additions through business combinations | – | 12 | – |
Exchange | 692 | (361) | 187 |
Other movements | 138 | (37) | (28) |
At 31 December | 29,622 | 30,295 | 28,622 |
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158
19 Interest-bearing loans and borrowings
continued
Notes to the Group Financial Statements
continued
Included in prior year cash flows is $833m in 2024 and $867m in 2023 relating to the Acerta Pharma share purchase. This liability was fully
extinguished in 2024.
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 in net | designated in | designated in | Amortised | carrying | Fair | |
investment hedge 1 | cash flow hedge 2 | fair value hedge 3 | cost | value | value | |
$m | $m | $m | $m | $m | $m | |
2024 | ||||||
Overdrafts | – | – | – | 59 | 59 | 59 |
Lease liabilities due within one year | – | – | – | 339 | 339 | 339 |
Lease liabilities due after more than one year | – | – | – | 1,113 | 1,113 | 1,113 |
Loans and borrowings due within one year | – | – | – | 2,278 | 2,278 | 2,263 |
Loans and borrowings due after more than one year | 1,267 | 2,387 | 1,468 | 21,384 | 26,506 | 25,405 |
Total at 31 December 2024 | 1,267 | 2,387 | 1,468 | 25,173 | 30,295 | 29,179 |
2025 | ||||||
Overdrafts | – | – | – | 13 | 13 | 13 |
Lease liabilities due within one year | – | – | – | 382 | 382 | 382 |
Lease liabilities due after more than one year | – | – | – | 1,421 | 1,421 | 1,421 |
Loans and borrowings due within one year | – | – | – | 3,091 | 3,091 | 3,068 |
Loans and borrowings due after more than one year | 1,405 | 2,694 | 1,634 | 18,982 | 24,715 | 24,337 |
Total at 31 December 2025 | 1,405 | 2,694 | 1,634 | 23,889 | 29,622 | 29,221 |
1
Instruments designated in a net investment hedge are our euro 800m 0.375% 2029 Callable bond and our pounds sterling 350m 5.75% 2031 Non-callable bond. The 2024 value of
$1,267m was previously presented within the Amortised cost column; from 2025 the presentation has been revised to present this within the Instruments designated in net investment
hedge column.
2
Instruments designated in cash flow hedges are our euro 750m 3.625% 2027 Callable bond, our euro 800m 1.25% 2028 Callable bond, and our euro 750m 3.75% 2032 Callable bond.
3
Instruments designated in fair value hedges are our euro 650m 3.121% 2030 Callable bond, and our euro 750m 3.278% 2033 Callable bond.
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 13. 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 13,
with the exception of overdrafts and lease liabilities, where fair value approximates to carrying values.
The adjustment to the carrying value of bonds designated in a fair value hedge relationship in the year was a decrease in the liability of $21m,
and the cumulative adjustment was a decrease in the liability of $5m. A gain of $4m was made during the year on the fair value of bonds
designated in a fair value hedge. Under IFRS 9 ‘Financial Instruments’, the Group records the component of fair value changes relating to the
component of own credit risk through Other comprehensive income. Changes in credit risk had no material effect on any other financial assets
and liabilities recognised at fair value in the Group Financial Statements. The change in fair value attributable to changes in credit risk is calculated
as the change in fair value not attributable to market risk.
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:
2025 | 2024 | |
Loans and borrowings | 1.9% to 2.6% | 2.0% to 2.9% |
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AstraZeneca
Annual Report & Form 20-F Information 2025
159
2025
2024
$m
$m
Current liabilities
Trade payables
3,820
3,640
Value-added and payroll taxes and social security
580
401
Rebates, chargebacks, returns and other revenue accruals
9,681
7,805
Clinical trial accruals
1,780
1,419
Other accruals
7,258
6,463
Collaboration Revenue contract liabilities
–
7
Vaccine contract liabilities
142
119
Deferred government grant income
2
–
Contingent consideration
346
1,170
Other payables
1,671
1,441
Total
25,280
22,465
Non-current liabilities
Accruals
85
65
Deferred government grant income
55
–
Contingent consideration
204
581
Other payables
2,035
1,124
Total
2,379
1,770
Included within Rebates, chargebacks, returns and other revenue accruals are contract liabilities of $63m (2024: $114m). The revenue recognised
in the year from opening contract liabilities is $107m, comprising $100m relating to other revenue accruals and $7m Collaboration Revenue
contract liabilities. The major markets with Rebates, chargebacks, returns and other revenue accruals are the US where the liability at 31 December
2025 amounted to $5,941m (2024: $4,978m), of which Rare Disease comprises $336m (2024: $240m), and China where the liability at
31 December 2025 amounted to $619m (2024: $532m).
Trade payables includes $100m (2024: $105m) due to suppliers that have signed up to a supply chain financing programme, under which the
suppliers can elect on an invoice-by-invoice basis to receive a discounted early payment from the relationship bank rather than being paid in
line with the agreed payment terms. If the option is taken, the Group’s liability is assigned by the supplier to be due to the relationship bank rather
than the supplier. The value of the liability payable by the Group remains unchanged. The Group assesses the arrangement against indicators
to assess if debts which vendors have sold to the funder under the supplier financing scheme continue to meet the definition of trade payables
or should be classified as borrowings. At 31 December 2025, the payables met the criteria of Trade payables. The supply chain financing
programme operates in the US, UK, Sweden, China and Germany, and as at 31 December 2025, the programme had 310 suppliers enrolled
across these countries.
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 relating to future sales related payments to Daiichi Sankyo totalling $673m (2024: $377m)
resulting from the collaboration agreement in relation to
Enhertu
entered into in March 2019. Additionally, included within non-current Other
payables are liabilities relating to future sales related payments totalling $579m (2024: $456m) as a result of the
Enhertu
collaboration agreement,
$499m (2024: $462m) owed to Bond Avillion 2 Development LP as a result of the
Airsupra
collaboration agreement entered into in March 2018
and $201m (2024: $nil) owed to MSD as a result of the
Koselugo
collaboration agreement entered into in 2017 and amended in August 2025.
In November 2020,
Calquence
received marketing approval in the European Union, 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 final payment of $833m made in 2024. Interest arising from amortising the liability
was included within Finance expense (see Note 4). The associated cash flows were disclosed as financing activities within the Consolidated
Statement of Cash Flows.
With the exception of Contingent consideration payables of $550m (2024: $1,751m) which are held at fair value within Level 3 of the fair value
hierarchy as defined in Note 13, all other financial liabilities are held at amortised cost with carrying value being a reasonable approximation of
fair value.
Contingent consideration
2025
2024
2023
$m
$m
$m
At 1 January
1,751
2,137
2,222
Additions through business combinations
–
198
60
Settlements
(1,164)
(1,008)
(826)
Revaluations
(97)
311
549
Discount unwind (Note 4)
60
113
132
At 31 December
550
1,751
2,137
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.
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160
Notes to the Group Financial Statements
continued
20 Trade and other payables
continued
Revaluations of Contingent consideration are recognised in Selling, general and administrative expense and include a decrease of $44m in 2025
(2024: increase of $260m; 2023: increase of $520m) based on revenue and royalty forecasts, relating to the acquisition of BMS’s share of the
Global Diabetes Alliance. Discount unwind on the liability is included within Finance expense (see Note 4).
The discount rates used for the Contingent consideration balances range from 5% to 8%. The most significant Contingent consideration balance
is the Global Diabetes Alliance which is discounted at 8% and is reviewed against comparable benchmarks on a regular basis.
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 $257m (2024: $1,309m; 2023: $1,945m) is due for
final payment in 2026.
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 Sarl | 2013 | Milestones | 171 |
Amplimmune, Inc. | 2013 | Milestones | 150 |
Almirall, S.A. | 2014 | Milestones and royalties | 345 |
Fusion Pharmaceuticals, Inc. | 2024 | Milestones | 304 |
Gracell Biotechnologies, Inc. | 2024 | Milestones | 149 |
The amount of royalties payable under the arrangements is inherently uncertain and difficult to predict, given the direct link to future sales and
Employee | Other | |||||
Severance | Environmental | benefits | Legal | provisions | Total | |
$m | $m | $m | $m | $m | $m | |
At 1 January 2024 | 176 | 112 | 168 | 1,016 | 683 | 2,155 |
Additions arising on business acquisitions | – | – | – | – | 50 | 50 |
Charge for year | 283 | 26 | 30 | 44 | 478 | 861 |
Cash paid | (101) | (33) | (7) | (189) | (146) | (476) |
Reversals | (83) | – | (1) | (9) | (255) | (348) |
Exchange and other movements | – | – | (24) | (3) | (25) | (52) |
At 31 December 2024 | 275 | 105 | 166 | 859 | 785 | 2,190 |
Charge for year | 190 | 27 | 40 | 252 | 189 | 698 |
Cash paid | (217) | (25) | (5) | (720) | (282) | (1,249) |
Reversals | (64) | – | (7) | (18) | (68) | (157) |
Exchange and other movements | 13 | – | (4) | 3 | 110 | 122 |
At 31 December 2025 | 197 | 107 | 190 | 376 | 734 | 1,604 |
2025 | 2024 | |
$m | $m | |
Due within one year | 686 | 1,269 |
Due after more than one year | 918 | 921 |
Total | 1,604 | 2,190 |
Provisions are often subject to substantial uncertainties with regard to the timing and final amounts of any payments. These uncertainties can
also cause a reversal in previously established provisions once final settlement is reached. 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 Alexion PAAGR, which involve
rationalisation of the global supply chain, the sales and marketing organisation, IT and business support infrastructure, and R&D.
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.
Details of the Environmental provisions totalling $107m (2024: $105m) and ongoing matters are provided in Note 30.
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A significant proportion of the total legal provision ($194m (2024: $626m) due within one year and $177m (2024: $210m) due after more than
one year
1
) relates to matters settled, but not paid, in previous periods; further details are provided in Note 30.
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 $166m (2024: $145m), in relation to third-party liability and other risks
(including incurred but not yet reported
claims); the claims are considered to be uncertain as to timing and amount. Charges to Other provisions in 2025 included $7m (2024: $184m)
in relation to the PAAGR restructuring programme, which has a closing provision of $78m (2024: $80m), including $59m (2024: $58m) held in
non-current provisions expected to be settled over time by 2028.
No provision has been released or applied for any purpose other than that for which it was established.
1
The expected profile of future payments of legal provisions due after one year is as follows: in one to two years $19m (2024
: $167m); in two to three years $131m (2024: $9m); in three to
Background
This section predominantly covers defined benefit (DB) arrangements such as 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 DB characteristics (e.g. a minimum guaranteed level of benefit). In total, over 50 plans in 28 countries are covered.
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 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 296 employees.
The Group’s DB plans are largely funded through ring-fenced, 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
Eighty six per cent of the Group’s total DB obligations (or 53% of net obligations) at 31 December 2025 are in plans within the UK and Sweden.
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 64% of the Group’s DB obligations at 31 December 2025. The funding framework is modified
in light of the UK regulatory requirements (summarised below) and resulting discussions with the Trustee.
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.
Guaranteed Minimum Pensions (GMP) equalisation of member benefits, as required by UK legislation, was completed for pensioner and
dependent members in 2024 and, for non-pensioner members, a process is in place to equalise their benefits at their point of retirement.
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.
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162
Notes to the Group Financial Statements
continued
22 Post-retirement pension and other defined benefit schemes
continued
In June 2023, the UK High Court (Virgin Media Limited v NTL Pension Trustees II Limited) ruled that certain historical amendments for contracted-
out DB pension plans were invalid if they were not accompanied by the correct actuarial confirmation. In July 2025, the UK Government confirmed
that it will introduce legislation to give affected pension schemes the ability to retrospectively obtain written actuarial confirmation that historic
benefit changes met the necessary standards. The Trustee has considered this matter with their legal adviser. The Trustee has not conducted
any detailed investigations as they have no reason to believe that any such confirmations were not provided and so no impact is expected on
the UK Pension Fund.
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 2023 annual report. The
actuarial valuation at 31 March 2025 will be the first valuation under the Pensions Regulator’s new DB funding code of practice, and is currently
in progress, with a likely timescale for completion during the second quarter of 2026. However, the value of the Fund’s obligations disclosed at
31 December 2025 incorporates data from this latest actuarial valuation including updated membership information and demographic assumptions.
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 £317m ($427m at December 2025 exchange rates
) and it is capped
at £350m ($471m). The value of the charge will vary and is expected to reduce over time, before falling away. Under the terms of the charge,
the Trustee can only exercise its right over the ownership of the site in a Group insolvency event.
In relation to deficit recovery contributions, in March 2025, the Group made a lump sum contribution of £39m ($49m). Further annual
contributions of £39m are due before 31 March 2026 and each year up to 31 March 2028. Based on 31 December 2025 IAS 19 assumptions,
it is expected that ongoing contributions (excluding past service deficit contributions) during the year ending 31 December 2026 for the UK
will be approximately $17m.
GMP equalisation of member benefits has been completed for pensioner and dependent members and, for non-pensioner members, a process
is in place to equalise their benefits at their point of retirement. The method of equalisation converts GMP to non-GMP pension to simplify the
structure and administration of benefits.
A new, voluntary, Flexible Pension Option was introduced from 1 July 2025, allowing retiring members to reshape their pension benefit. A $33m
past service credit was taken to the Consolidated Statement of Comprehensive Income in May 2025 reflecting expected take-up of this
option.
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 22% of the Group’s DB obligations. They are governed by Fiduciary Bodies with responsibility for the investment
of the assets. These plans are funded in line with the Group’s long-term funding framework and local regulations.
The Swedish DB pension plans were actuarially valued at 31 December 2024, when plan obligations were estimated to amount to $1,508m and
plan assets were $1,056m. The local Swedish GAAP funding position can influence contribution policy. Over 2025, for the largest pension plan,
the Group did not request a reimbursement of benefit payments made throughout the year as the funding level was below 100% on the Swedish
GAAP basis and so any such reimbursement is not permitted. These benefit payments over 2025, totalling approximately $60m, are therefore
regarded as Group contributions.
Based on 31 December 2025 IAS 19 assumptions, it is expected that contributions during the year ending 31 December 2026 for Sweden will
be approximately $64m.
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163
Other defined benefit plans
The Group provides DB 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 2025 was $1m (2024: $1m; 2023: $1m). Plan assets were $141m and
plan obligations were $83m at 31 December 2025.
Financial assumptions
Qualified independent actuaries have updated the actuarial valuations under IAS 19 for the major DB plans operated by the Group to 31 December
2025. 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:
2024 | |||
UK | Sweden | Rest of Group 1 | |
Inflation assumption | 3.2% | 1.8% | 2.1% |
Rate of increase in salaries | – 3 | 3.3% | 3.6% |
Rate of increase in pensions in payment | 3.0% | 1.8% | 2.1% |
Discount rate – defined benefit obligation | 5.5% | 3.5% | 3.5% |
Discount rate – interest cost | 5.4% | 3.4% | 3.5% |
Discount rate – service cost | 5.5% | 3.5% | 3.5% |
2025 | |||
UK | Sweden | Rest of Group 1 | |
Inflation assumption | 2.8% 2 | 1.7% | 2.0% |
Rate of increase in salaries | – 3 | 3.2% | 3.5% |
Rate of increase in pensions in payment | 2.7% | 1.7% | 2.0% |
Discount rate – defined benefit obligation 4 | 5.5% | 3.8% | 4.3% |
Discount rate – interest cost 5 | 5.1% | 3.6% | 3.9% |
Discount rate – service cost 5 | 5.7% | 3.9% | 4.5% |
1
Rest of Group reflects the assumptions in Germany as these have the most material impact on the Group.
2
The UK inflation assumption includes an allowance for some UK inflation experience over 2025.
3
Pensionable pay frozen at 30 June 2010 levels following UK fund changes.
4
Group defined benefit obligation as at 31 December 2025 calculated using discount rates based on market conditions as at 31 December 2025.
5
2025 interest costs and service costs calculated using discount rates based on market conditions as at 31 December 2024.
The weighted average duration of the post-retirement scheme obligations is approximately 10 years in the UK, 16 years in Sweden and 12 years
for the Rest of the Group (including Germany).
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 65 for male and female members retiring in 2025 and male and female members
expected to retire in 2045 (2024: 2024 and 2044 respectively).
Life expectancy assumption for a male member retiring at age 65 | Life expectancy assumption for a female member retiring at age 65 | |||||||
Country | 2025 | 2045 | 2024 | 2044 | 2025 | 2045 | 2024 | 2044 |
UK | 23.0 | 24.3 | 22.1 | 23.1 | 24.2 | 25.6 | 23.7 | 24.8 |
Sweden | 22.8 | 24.3 | 21.8 | 24.1 | 24.4 | 25.3 | 23.9 | 26.3 |
In the UK, the Group updated the mortality tables used, reflecting analysis carried out as part of the latest actuarial valuation and adopted the
CMI Core 2024 Mortality Projections Model with core fitting parameters (H=1.0, SK=7.0), an addition to initial rates of improvement of 0.5% p.a.
and a 1.0% p.a. long-term improvement rate. Other demographic assumptions were updated based on analysis carried out as part of the 2025
actuarial valuation. The Group has assumed that 15% of members (2024: 15%) will transfer out of the DB section of the UK Pension Fund at an
average age of 59 (2024: 57).
In Sweden, the Group continues to use the most recently published mortality tables, DUS23, for the year.
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164
Notes to the Group Financial Statements
continued
22 Post-retirement pension and other defined benefit schemes
continued
Risks associated with the Group’s defined benefit pension plans
The UK DB plan accounts for 64% of the Group’s DB obligations and exposes the Group to a number of risks, which the Group monitors and works
with the Trustee to mitigate (noting it is the Trustee who has the remit and ultimate decision making powers). The most significant of which are:
Risk | Description | Mitigation |
1 Asset pricing | The Defined Benefit Obligation (DBO) is calculated using a discount | The Trustee invests in a suitably diversified range of asset classes |
rate set with reference to AA-rated corporate bond yields; asset returns | with different return drivers and investment managers. Investment | |
that differ from the discount rate will create an element of volatility | strategy will evolve to further improve the expected risk/return | |
in the solvency ratio. Approximately 45% of the UK Pension Fund | profile as opportunities arise and funding solvency improves. | |
is exposed to growth assets, including global investments, most of | ||
which are not sterling denominated. Although these growth assets | The Trustee has hedged approximately 87% of unintended non- | |
are expected to outperform AA-rated corporate bonds in the long | sterling, overseas currency risk within the UK Pension Fund assets. | |
term, they can lead to volatility and mismatching risk in the short term. | ||
The allocation to growth assets is monitored to ensure it remains | ||
appropriate given the UK Pension Fund’s long-term objectives and | ||
risk budget. | ||
2 Interest rate | A decrease in corporate bond yields will increase the present value | The interest rate hedge of the UK Pension Fund is predominantly |
placed on the DBO under IAS 19. | 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 100% hedged as a percentage of assets at the end of 2025 | ||
(versus target of 100%). Nonetheless, there remain differences in | ||
the bonds and instruments held by the UK Pension Fund to hedge | ||
interest rate risk on the statutory and long-term funding basis (gilts | ||
and ‘gilt repo’) and the bonds included in the yield curve to set the | ||
DBO discount rate on an IAS 19 basis (AA corporate bonds). As such, | ||
there remains mismatching risk on an IAS 19 basis should yields on | ||
gilts diverge compared to AA corporate bonds. | ||
3 Inflation | The majority of the DBO is indexed in line with price inflation (mainly | The UK Pension Fund holds RPI index-linked gilts and ‘gilt repo’. |
inflation as measured by the UK Retail Price Index (RPI) but also for | The inflation hedge of the UK Pension Fund protects to some degree | |
some members, a component of pensions is indexed by the UK | against higher-than-expected inflation increases on the DBO and is | |
Consumer Price Index (CPI)) and higher inflation will lead to higher | approximately 96% hedged as a percentage of assets at the end of | |
liabilities (although, in the vast majority of cases, this is capped at | 2025 (versus a target of 100%). | |
an annual increase of 5%, known as Limited Price Indexation or LPI). | ||
4 Longevity | The majority of the UK Pension Fund’s obligations are to provide | In 2013, the Trustee entered into a longevity swap to hedge against |
benefits for the life of the member, so increases in life expectancy | the risk of increasing life expectancy over the next circa 70 years. | |
will result in an increase in the liabilities. | The swap currently covers approximately 7,500 of the UK Pension | |
Fund’s pensioners, equivalent to $2.0bn of Pension Fund liability. | ||
A one-year increase in life expectancy would result in a $161m | ||
increase in Pension Fund obligations, which would be partially | ||
offset by a $81m increase in the value of the longevity swap and | ||
hence the pension fund assets. | ||
5 Cash flow | The UK Pension Fund is maturing and is cash flow negative. Assets | The Trustee invests in a diversified portfolio of highly liquid assets |
and liquidity | are liquidated to meet benefit outgo and potentially from time to | to manage sequencing risk and operates a collateral management |
time, to supplement the collateral pool required to post margin for | policy, maintaining a minimum liquidity ‘buffer’. As at the end of | |
derivative holdings. | 2025, the buffer is well above recommended regulatory guidelines | |
and the minimum thresholds, and can be quickly supplemented in | ||
There is a risk of the Trustee requesting liquidity support from the | an orderly manner. | |
Group to meet margin calls or expenditure, if the liquidity position | ||
of the UK Pension Fund is not effectively monitored and managed. | At 31 December 2025, 8% of assets are invested in a cash-flow driven | |
investment portfolio, consisting of investment-grade corporate bonds. | ||
The purpose of this portfolio is to generate income to help meet the | ||
Fund’s benefit outgo. The portfolio is expected to grow over time as | ||
further de-risking occurs and when attractive pricing points present. |
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 Fund.
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.
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165
Assets and obligations of defined benefit plans
The assets and obligations of the DB schemes operated by the Group at 31 December 2025, as calculated in accordance with IAS 19, are
shown below.
Scheme assets
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 | 1,884 | – | – | – | 45 | – | 1,929 | – | 1,929 |
Corporate bonds 2 | 352 | – | – | – | 6 | – | 358 | – | 358 |
Derivatives 3 | – | (355) | – | 475 | – | – | – | 120 | 120 |
Investment funds: Listed Equities 4 | – | 374 | – | – | 38 | 23 | 38 | 397 | 435 |
Investment funds: Absolute Return/Multi Strategy 4 | – | 1,051 | – | 420 | 5 | 7 | 5 | 1,478 | 1,483 |
Investment funds: Corporate Bonds/Credit 4 | – | 601 | – | 159 | 182 | 19 | 182 | 779 | 961 |
Cash and cash equivalents | 32 | 336 | – | 2 | 2 | 2 | 34 | 340 | 374 |
Other | – | – | – | – | (6) | 194 | (6) | 194 | 188 |
Total fair value of scheme assets 5 | 2,268 | 2,007 | – | 1,056 | 272 | 245 | 2,540 | 3,308 | 5,848 |
2025 | |||||||||
| 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 | 2,231 | – | – | – | 2 | 48 | 2,233 | 48 | 2,281 |
Corporate bonds 2 | 387 | – | – | – | 4 | 1 | 391 | 1 | 392 |
Derivatives 3 | – | (316) | – | (38) | – | (1) | – | (355) | (355) |
Investment funds: Listed Equities 4 | – | 215 | – | – | 51 | 3 | 51 | 218 | 269 |
Investment funds: Absolute Return/Multi Strategy 4 | – | 1,021 | – | 529 | – | 6 | – | 1,556 | 1,556 |
Investment funds: Corporate Bonds/Credit 4 | – | 628 | – | 205 | 186 | – | 186 | 833 | 1,019 |
Cash and cash equivalents | – | 431 | – | 626 | 7 | 7 | 7 | 1,064 | 1,071 |
Other | – | – | – | – | 1 | 247 | 1 | 247 | 248 |
Total fair value of scheme assets 5 | 2,618 | 1,979 | – | 1,322 | 251 | 311 | 2,869 | 3,612 | 6,481 |
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 from page 164. Derivative fair values 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
None of the Group’s own assets were included in the scheme assets (2024: $nil).
Scheme obligations
2024 | ||||
UK | Sweden | Rest of Group | Total | |
$m | $m | $m | $m | |
Present value of scheme obligations in respect of: | ||||
Active membership | (200) | (543) | (481) | (1,224) |
Deferred membership | (667) | (393) | (197) | (1,257) |
Pensioners | (3,725) | (572) | (301) | (4,598) |
Total value of scheme obligations | (4,592) | (1,508) | (979) | (7,079) |
2025 | ||||
UK | Sweden | Rest of Group | Total | |
$m | $m | $m | $m | |
Present value of scheme obligations in respect of: | ||||
Active membership | (150) | (577) | (532) | (1,259) |
Deferred membership | (566) | (431) | (199) | (1,196) |
Pensioners | (4,051) | (672) | (302) | (5,025) |
Total value of scheme obligations | (4,767) | (1,680) | (1,033) | (7,480) |
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Notes to the Group Financial Statements
continued
22 Post-retirement pension and other defined benefit schemes
continued
Net (deficit)/surplus in the scheme
2024 | ||||
UK | Sweden | Rest of Group | Total | |
$m | $m | $m | $m | |
Total fair value of scheme assets | 4,275 | 1,056 | 517 | 5,848 |
Total value of scheme obligations | (4,592) | (1,508) | (979) | (7,079) |
Deficit in the scheme as recognised in the Consolidated Statement of Financial Position | (317) | (452) | (462) | (1,231) |
Included in Non-current other receivables (Note 15) | – | – | 99 1 | 99 |
Included in Retirement benefit obligations | (317) | (452) | (561) | (1,330) |
(317) | (452) | (462) | (1,231) |
2025 | ||||
UK | Sweden | Rest of Group | Total | |
$m | $m | $m | $m | |
Total fair value of scheme assets | 4,597 | 1,322 | 562 | 6,481 |
Total value of scheme obligations | (4,767) | (1,680) | (1,033) | (7,480) |
Deficit in the scheme as recognised in the Consolidated Statement of Financial Position | (170) | (358) | (471) | (999) |
Included in Non-current other receivables (Note 15) | – | – | 106 1 | 106 |
Included in Retirement benefit obligations | (170) | (358) | (577) | (1,105) |
(170) | (358) | (471) | (999) |
1
Surpluses were recognised in the US, Ireland and Belgium.
Fair value of scheme assets
2025 | 2024 | |||||||
UK | Sweden | Rest of Group | Total | UK | Sweden | Rest of Group | Total | |
$m | $m | $m | $m | $m | $m | $m | $m | |
At beginning of year | 4,275 | 1,056 | 517 | 5,848 | 4,759 | 1,068 | 652 | 6,479 |
Interest income on scheme assets | 232 | 40 | 17 | 289 | 214 | 33 | 15 | 262 |
Expenses | (5) | – | – | (5) | (5) | – | – | (5) |
Actuarial gains/(losses) | 61 | 25 | (1) | 85 | (370) | 55 | – | (315) |
Exchange and other adjustments | 304 | 202 | 37 | 543 | (67) | (98) | (20) | (185) |
Employer contributions | 65 | 57 | 64 | 186 | 66 | 50 | 50 | 166 |
Participant contributions | 1 | – | 12 | 13 | 1 | – | 12 | 13 |
Benefits paid | (336) | (58) | (84) | (478) | (323) | (52) | (76) | (451) |
Settlements 1 | – | – | – | – | – | – | (116) | (116) |
Scheme assets’ fair value at end of year | 4,597 | 1,322 | 562 | 6,481 | 4,275 | 1,056 | 517 | 5,848 |
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 gain of $374m (2024: loss of $53m).
Movement in post-retirement scheme obligations
2025 | 2024 | |||||||
UK | Sweden | Rest of Group | Total | UK | Sweden | Rest of Group | Total | |
$m | $m | $m | $m | $m | $m | $m | $m | |
Present value of obligations | ||||||||
in scheme at beginning of year | (4,592) | (1,508) | (979) | (7,079) | (5,161) | (1,602) | (1,144) | (7,907) |
Current service cost | (5) | (41) | (40) | (86) | (6) | (26) | (40) | (72) |
Past service credit/(cost) | 32 | (5) | (1) | 26 | (2) | (8) | 1 | (9) |
Participant contributions | (1) | – | (12) | (13) | (1) | – | (12) | (13) |
Benefits paid | 336 | 58 | 84 | 478 | 323 | 52 | 76 | 451 |
Interest expense on post-retirement | ||||||||
scheme obligations | (248) | (55) | (37) | (340) | (231) | (47) | (34) | (312) |
Actuarial gains/(losses) | 30 | 149 | 26 | 205 | 416 | (23) | 2 | 395 |
Exchange and other adjustments | (319) | (278) | (87) | (684) | 70 | 146 | 56 | 272 |
Settlements 1 | – | – | 13 | 13 | – | – | 116 | 116 |
Present value of obligations | ||||||||
in scheme at end of year | (4,767) | (1,680) | (1,033) | (7,480) | (4,592) | (1,508) | (979) | (7,079) |
1
The 2024 settlement is the buyout of post-retirement pension plans in Norway and the Netherlands.
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The obligations arise from the following plans:
2025 | 2024 | |||||||
UK | Sweden | Rest of Group | Total | UK | Sweden | Rest of Group | Total | |
$m | $m | $m | $m | $m | $m | $m | $m | |
Funded – pension schemes 1 | (4,758) | (1,678) | (777) | (7,213) | (4,582) | (1,505) | (717) | (6,804) |
Funded – post-retirement healthcare | – | – | (67) | (67) | – | – | (78) | (78) |
Unfunded – pension schemes 1 | – | (2) | (179) | (181) | – | (3) | (167) | (170) |
Unfunded – post-retirement healthcare | (9) | – | (10) | (19) | (10) | – | (17) | (27) |
Total | (4,767) | (1,680) | (1,033) | (7,480) | (4,592) | (1,508) | (979) | (7,079) |
1
Includes defined benefit pension schemes and other plans, such as lump sum, long-service awards and DC plans with underpins.
Consolidated Statement of Comprehensive Income disclosures
The amounts that have been charged to the Consolidated Statement of Comprehensive Income, in respect of DB schemes for the years ended
31 December 2025 and 31 December 2024, are set out below.
2025 | 2024 | |||||||
UK | Sweden | Rest of Group | Total | UK | Sweden | Rest of Group | Total | |
$m | $m | $m | $m | $m | $m | $m | $m | |
Operating profit | ||||||||
Current service cost | (5) | (41) | (40) | (86) | (6) | (26) | (40) | (72) |
Past service credit/(cost) | 32 | (5) | (1) | 26 | (2) | (8) | 1 | (9) |
Expenses | (5) | – | – | (5) | (5) | – | – | (5) |
Total credit/(charge) to Operating profit | 22 | (46) | (41) | (65) | (13) | (34) | (39) | (86) |
Finance expense | ||||||||
Interest income on scheme assets | 232 | 40 | 17 | 289 | 214 | 33 | 15 | 262 |
Interest expense on post-retirement | ||||||||
scheme obligations | (248) | (55) | (37) | (340) | (231) | (47) | (34) | (312) |
Net interest on post-employment | ||||||||
defined benefit plan liabilities | (16) | (15) | (20) | (51) | (17) | (14) | (19) | (50) |
Credit/(charge) before taxation | 6 | (61) | (61) | (116) | (30) | (48) | (58) | (136) |
Other comprehensive income | ||||||||
Difference between the actual return | ||||||||
and the expected return on the post- | ||||||||
retirement scheme assets | 61 | 25 | (1) | 85 | (370) | 55 | – | (315) |
Experience gains/(losses) arising on the | ||||||||
post-retirement scheme obligations | 17 | 60 | (18) | 59 | 3 | (33) | (10) | (40) |
Changes in financial assumptions | ||||||||
underlying the present value of the | ||||||||
post-retirement scheme obligations | 87 | 89 | 44 | 220 | 414 | 11 | 11 | 436 |
Changes in demographic assumptions | (74) | – | – | (74) | (1) | (1) | 1 | (1) |
Remeasurement of the | ||||||||
defined benefit liability | 91 | 174 | 25 | 290 | 46 | 32 | 2 | 80 |
Past service cost includes granting early retirement in UK and Sweden.
Total Group pension costs in respect of defined contribution and DB schemes during the year are set out below (see Note 29).
2025 | 2024 | |
$m | $m | |
Defined contribution plans | 553 | 528 |
Defined benefit plans − Current service cost and expenses | 91 | 77 |
Defined benefit plans − Past service (credit)/cost | (26) | 9 |
Pension costs | 618 | 614 |
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Notes to the Group Financial Statements
continued
22 Post-retirement pension and other defined benefit schemes
continued
SE
Rate sensitivities
The following tables show the US dollar effect of a change in the significant actuarial assumptions used to determine the retirement benefits
obligations in our two main DB pension obligation countries.
2025 | 2024 | |||
+0.5% | −0.5% | +0.5% | −0.5% | |
Discount rate | ||||
UK ($m) | 219 | (238) | 219 | (239) |
Sweden ($m) | 116 | (129) | 110 | (126) |
Total ($m) | 335 | (367) | 329 | (365) |
2025 | 2024 | |||
+0.5% | −0.5% | +0.5% | −0.5% | |
Inflation rate 1 | ||||
UK ($m) | (155) | 142 | (148) | 142 |
Sweden ($m) | (104) | 95 | (119) | 104 |
Total ($m) | (259) | 237 | (267) | 246 |
2025 | 2024 | |||
+0.5% | −0.5% | +0.5% | −0.5% | |
Rate of increase in salaries 2 | ||||
UK ($m) | n/a | n/a | n/a | n/a |
Sweden ($m) | (33) | 32 | (46) | 43 |
Total ($m) | (33) | 32 | (46) | 43 |
2025 | 2024 | |||
+1 year | −1 year | +1 year | −1 year | |
Mortality rate 3 | ||||
UK ($m) | (161) 4 | 163 5 | (178) | 175 |
Sweden ($m) | (58) | 58 | (74) | 54 |
Total ($m) | (219) | 221 | (252) | 229 |
1
Rate of increase in pensions in payment follows inflation. The inflation sensitivity allows for the impact of a change in inflation on salary increases and pension increases (where these
assumptions are inflation-linked).
2
The salary increase sensitivity reflects the impact of an increase of only salary relative to inflation.
3
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.
4
Of the $161m increase, $81m is covered by the longevity swap.
5
Of the $163m decrease, $81m is covered by the longevity swap.
The sensitivity to the financial assumptions shown above has been estimated taking into account the approximate duration of the liabilities and
Retained earnings
The cumulative amount of goodwill written off directly to reserves resulting from acquisitions, net of disposals, amounted to $603m (2024: $580m;
2023: $595m) using year-end rates of exchange.
At 31 December 2025, 147,547 shares, at a cost of $25m, have been deducted from Retained earnings (2024: 442,342 shares, at a cost of $68m;
2023: 1,580,137 shares, at a cost of $129m) to satisfy future vesting of employee share plans.
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 5).
2025 | 2024 | 2023 | |
$m | $m | $m | |
Cumulative translation differences included within Retained earnings | |||
At 1 January | (4,069) | (3,014) | (3,694) |
Foreign exchange arising on consolidation | 2,387 | (957) | 608 |
Exchange adjustments on goodwill (recorded against Other reserves) | 23 | (15) | 4 |
Foreign exchange arising on designated liabilities in net investment hedges 1 | 18 | (122) | 24 |
Fair value movements on derivatives designated in net investment hedges | 14 | 39 | 44 |
Net exchange movement in Retained earnings | 2,442 | (1,055) | 680 |
At 31 December | (1,627) | (4,069) | (3,014) |
1
Foreign exchange arising on designated liabilities in net investment hedges includes $(137)m in respect of designated bonds and $155m in respect of designated contingent consideration
and other liabilities. The change in value of designated contingent consideration liabilities relates to $152m in respect of BMS’ share of Global Diabetes Alliance.
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The cumulative loss with respect to costs of hedging is $42m (2024: $43m; 2023: $22m) and the gain during the year was $1m (2024
: loss
of $21m; 2023: loss of $19m).
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 $527m. For further detail relating to hedging balances, please see the Hedge accounting section within Note 28,
from page 176.
Other reserves
The Other reserves arose from the cancellation of £1,255m of share premium account by the Company in 1993 and the redenomination of share
capital of $157m in 1999. The reserves are available for writing off goodwill arising on consolidation and, subject to guarantees given to preserve
creditors at the date of the court order, are available for distribution.
In the prior year, following an amendment to the Employee Benefit Trust (EBT) Deed on 10 June 2024, AstraZeneca obtained control and
Allotted, called-up and fully paid | |||
2025 | 2024 | 2023 | |
$m | $m | $m | |
Issued Ordinary Shares ($0.25 each) | 388 | 388 | 388 |
Redeemable Preference Shares (£1 each – £50,000) | – | – | – |
At 31 December | 388 | 388 | 388 |
The Redeemable Preference Shares carry limited class-voting rights and no dividend rights. This class of shares is 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 shares.
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 | |||
2025 | 2024 | 2023 | |
At 1 January | 1,550,546,239 | 1,550,162,626 | 1,549,800,030 |
Issue of shares (share schemes) | 361,688 | 383,613 | 362,596 |
At 31 December | 1,550,907,927 | 1,550,546,239 | 1,550,162,626 |
Share issues
Issue of shares (share schemes) represents share capital issued as part of the Group’s equity incentivisation schemes (see Note 29
).
Share repurchases
No Ordinary Shares were repurchased by the Company in 2025 (2024: nil; 2023: nil).
Shares held by subsidiaries
At 31 December 2025, AstraZeneca-controlled Employee Benefit Trust arrangements held 147,547 (2024: 442,342) Ordinary Shares in the
Company at a cost of $25m (2024: $68m). The market value of these Ordinary Shares at 31 December 2025 was $27m (2024: $58m). No
2025 | 2024 | 2023 | 2025 | 2024 | 2023 | |
Per share | Per share | Per share | $m | $m | $m | |
Second interim (March 2025) | $2.10 | $1.97 | $1.97 | 3,249 | 3,052 | 3,047 |
First interim (September 2025) | $1.03 | $1.00 | $0.93 | 1,597 | 1,550 | 1,440 |
Total | $3.13 | $2.97 | $2.90 | 4,846 | 4,602 | 4,487 |
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 12 years be forfeited. Unclaimed dividends of $nil (2024: $nil; 2023: $nil) have been adjusted for in
Retained earnings in 2025.
The 2024 second interim dividend of $2.10 per share was paid on 24 March 2025. The 2025 first interim dividend of $1.03 per share was paid
on 8 September 2025.
Reconciliation of dividends charged to equity to the Consolidated Statement of Cash Flows:
2025 | 2024 | 2023 | |
$m | $m | $m | |
Dividends charged to equity | 4,846 | 4,602 | 4,487 |
Exchange losses on payment of dividend | 6 | 3 | 5 |
Hedge contracts relating to payment of dividends (Consolidated Statement of Cash Flows) | 113 | 16 | (19) |
Dividends paid to non-controlling interests | 6 | 4 | 4 |
Net movement of unclaimed dividends in the year | – | 4 | 4 |
Dividends paid (Consolidated Statement of Cash Flows) | 4,971 | 4,629 | 4,481 |
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Financial Statements
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The Group Financial Statements at 31 December 2025 reflect equity of $52m (2024: $85m; 2023: $23m) and Total comprehensive income of
$16m (2024: $5m; 2023: $6m) attributable to the non-controlling interests in AstraZeneca Pharma India Limited, P.T. AstraZeneca Indonesia,
AstraZeneca Algeria Pharmaceutical Industries SPA, and VaxNewMo LLC.
On 22 October 2025 AstraZeneca completed the acquisition of the remaining $35m non-controlling interest in SixPeaks Bio AG in exchange
Acquisitions of business operations in 2025
FibroGen China
On 29 August 2025, AstraZeneca completed the acquisition of FibroGen International (Hong Kong) Limited (FibroGen China) and its subsidiaries,
including the existing non-controlling interest in Beijing Falikang Pharmaceutical Co., Ltd. Through this acquisition AstraZeneca obtained control
of all rights to roxadustat in China, including manufacturing in China.
The total consideration fair value of $221m comprised $189m to acquire the equity of FibroGen China, $12m for the purchase of an existing
non-controlling interest in Beijing Falikang Pharmaceutical Co., Ltd, and $20m for the settlement of pre-existing net payables from AstraZeneca
Group to FibroGen China. The transaction was recorded as a business combination under IFRS 3 ‘Business Combinations’ using the acquisition
method of accounting. The purchase price allocation review has been completed. Net assets acquired amounted to $203m, including cash
and cash equivalents of $120m and intangible assets of $50m. FibroGen China’s results were consolidated into the Group’s results from
29 August 2025.
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 was recorded as a business combination using the acquisition method of accounting in accordance with IFRS 3. 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 | 1,038 |
Cash and cash equivalents 1 | 212 |
Net deferred tax liability | (260) |
Other immaterial net balances | (89) |
Total net assets acquired | 901 |
Goodwill | 136 |
Consideration | 1,037 |
1
Cash and cash equivalents acquired includes $3m relating to marketable securities.
The total consideration fair value of $1,037m comprises cash consideration of $983m and future regulatory milestone-based consideration of
$54m. Intangible assets recognised related to products in development, principally AZD0120, and were fair valued using the multi-period excess
earnings method, which uses several estimates regarding the amount and timing of future cash flows. The key assumptions in the cash flows
were the probability of technical and regulatory success, peak year sales and revenue erosion profiles.
The net deferred tax liability of $260m principally arose from the deferred tax impact of the uplift in fair value of intangible assets.
Goodwill of $136m was recognised, which principally comprised the premium attributable to the core technological capabilities and knowledge
base of the company. Goodwill was not expected to be deductible for tax purposes.
Gracell’s results were consolidated into the Group’s results from 22 February 2024.
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 marked 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 1% shareholding in Fusion considered to have a fair value of $24m.
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This acquisition complemented 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 was recorded as a business combination using the acquisition method of accounting in accordance with IFRS 3. Consequently,
the assets acquired, and liabilities assumed were recorded at fair value. The purchase price allocation review was completed.
Fair value | |
$m | |
Intangible assets | 1,326 |
Cash and cash equivalents | 30 |
Current investments | 87 |
Net deferred tax liability | (246) |
Other immaterial net balances | 51 |
Total net assets acquired | 1,248 |
Goodwill | 947 |
Consideration | 2,195 |
The total consideration fair value of $2,195m included cash consideration of $2,027m (net of $24m proceeds from disposal of the existing
approximately 1% shareholding) and future regulatory milestone-based consideration of $144m. Intangible assets relating to products in
development comprised the FPI-2265 ($848m), FPI-2059 ($165m) and AZD2068 ($313m) programmes. These were fair valued using the
multi-period excess earnings method, which uses several estimates regarding the amount and timing of future cash flows. The key assumptions
in the cash flows were the probability of technical and regulatory success, peak year sales and revenue erosion profiles.
The net deferred tax liability of $246m principally arose from the deferred tax impact of the uplift in fair value of intangible assets.
Goodwill amounting to $947m was recognised on acquisition and was underpinned by a number of elements, which individually could not be
quantified. These included the premium attributable to a pre-existing, well positioned business in the innovation intensive biopharmaceuticals
market with a highly skilled workforce, unidentified potential products that future research and development may yield, and the core capabilities
and knowledge base of the company including radioisotope supply and manufacturing expertise. Goodwill was not expected to be deductible
for tax purposes.
Fusion’s results were 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 $165m due to decisions made to
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 13
) and Cash
(Note 18). 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.
The Group utilises factoring arrangements and bank acceptance draft 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 17.
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. No share repurchases have been made since 2012.
The Group’s net debt position (loans and borrowings net of Cash and cash equivalents, Other investments and Derivative financial instruments)
has decreased by $1,196m from a net debt position of $24,570m at the beginning of the year to a net debt position of $23,374m at 31 December
2025. Gross debt decreased from $30,295m to $29,622m, principally due to the repayment of $2,029m debt, partially offset by an increase
of $692m resulting from foreign currency movements.
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Notes to the Group Financial Statements
continued
28 Financial risk management objectives and policies
continued
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 2025, 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 A1 by Moody’s and A+ by Standard and Poor’s.
In addition to Cash and cash equivalents of $5,711m, short-term fixed income investments of $8m, less overdrafts of $13m at 31 December 2025,
the Group has committed bank facilities of $4,875m available to manage liquidity. These committed bank facilities have no financial covenants.
The Group regularly monitors the credit standing of the banks providing the facilities and currently does not anticipate any issue with drawing
on the committed facilities should this be necessary. Advances under these facilities currently bear an interest rate per annum based on Secured
Overnight Financing Rate (SOFR), plus a margin.
At 31 December 2025, the Group has $5,733m outstanding from debt issued under a Euro Medium Term Note programme and $21,369m under
an SEC-registered programme. The funds made available under these facility agreements may be used for the general corporate purposes of
the Group.
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 non- | Derivative | Derivative | Total | |||||
overdrafts | Trade | 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 | 345 | 3,045 | 396 | 22,501 | 26,287 | (16,227) | 16,282 | 55 | 26,342 |
In one to two years | – | 3,437 | 345 | 1,086 | 4,868 | (207) | 250 | 43 | 4,911 |
In two to three years | – | 3,670 | 266 | 105 | 4,041 | (917) | 956 | 39 | 4,080 |
In three to four years | – | 3,978 | 170 | 750 | 4,898 | (941) | 1,044 | 103 | 5,001 |
In four to five years | – | 3,780 | 117 | – | 3,897 | (627) | 489 | (138) | 3,759 |
In more than five years | – | 19,929 | 406 | – | 20,335 | (2,437) | 2,583 | 146 | 20,481 |
345 | 37,839 | 1,700 | 24,442 | 64,326 | (21,356) | 21,604 | 248 | 64,574 | |
Effect of interest | (15) | (9,173) | – | – | (9,188) | 808 | (1,068) | (260) | (9,448) |
Effect of discounting, fair values and issue costs | – | (153) | (248) | (207) | (608) | 36 | (95) | (59) | (667) |
31 December 2024 | 330 | 28,513 | 1,452 | 24,235 | 54,530 | (20,512) | 20,441 | (71) | 54,459 |
Bank | Total non- | Derivative | Derivative | Total | |||||
overdrafts | Trade | 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 | 669 | 3,495 | 450 | 25,282 | 29,896 | (17,182) | 17,205 | 23 | 29,919 |
In one to two years | – | 3,784 | 388 | 473 | 4,645 | (1,031) | 944 | (87) | 4,558 |
In two to three years | – | 4,097 | 292 | 1,425 | 5,814 | (1,052) | 1,035 | (17) | 5,797 |
In three to four years | – | 3,898 | 199 | 508 | 4,605 | (637) | 481 | (156) | 4,449 |
In four to five years | – | 3,368 | 156 | 166 | 3,690 | (849) | 1,516 | 667 | 4,357 |
In more than five years | – | 16,906 | 599 | – | 17,505 | (1,913) | 2,596 | 683 | 18,188 |
669 | 35,548 | 2,084 | 27,854 | 66,155 | (22,664) | 23,777 | 1,113 | 67,268 | |
Effect of interest | (25) | (8,223) | – | – | (8,248) | 752 | (2,370) | (1,618) | (9,866) |
Effect of discounting, fair values and issue costs | – | (150) | (281) | (195) | (626) | 10 | (12) | (2) | (628) |
31 December 2025 | 644 | 27,175 | 1,803 | 27,659 | 57,281 | (21,902) | 21,395 | (507) | 56,774 |
It is not expected that the cash flows in the maturity profile could occur significantly earlier or at significantly different amounts, with the
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 profile includes the impact of interest rate swaps which convert the debt to floating rate.
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2025 | 2024 | |||||
Fixed rate | Floating rate | Total | Fixed rate | Floating rate | Total | |
$m | $m | $m | $m | $m | $m | |
Financial liabilities | ||||||
Current | 2,842 | 644 | 3,486 | 2,346 | 330 | 2,676 |
Non-current | 24,502 | 1,634 | 26,136 | 26,151 | 1,468 | 27,619 |
Total | 27,344 | 2,278 | 29,622 | 28,497 | 1,798 | 30,295 |
Financial assets | ||||||
Cash collateral pledged to counterparties | – | 22 | 22 | – | 129 | 129 |
Cash and cash equivalents | – | 5,711 | 5,711 | – | 5,488 | 5,488 |
Total | – | 5,733 | 5,733 | – | 5,617 | 5,617 |
In addition to the financial assets above, there are $13,988m (2024: $11,115m) of other current and non-current asset investments and other
financial assets.
The Group is also exposed to market risk on other investments.
2025 | 2024 | |
$m | $m | |
Equity securities at fair value through Other comprehensive income (Note 13) | 2,212 | 1,632 |
Equity securities at fair value through profit and loss (Note 13) | 11 | – |
Total | 2,223 | 1,632 |
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 59% of Group Total Revenue in 2025 was denominated in currencies other than the US dollar, while a significant proportion
of manufacturing and research and development costs were denominated in pound sterling and Swedish krona. Surplus cash generated by
business units is substantially converted to, and held centrally in, US dollars. As a result, operating profit and total cash flow in US dollars will
be affected by movements in exchange rates. This currency exposure is managed centrally, based on forecast cash flows. The impact of
movements in exchange rates is mitigated significantly by the correlations which exist between the major currencies to which the Group is
exposed and the US dollar. Monitoring of currency exposures and correlations is undertaken on a regular basis and hedging is subject to
pre-execution approval.
As at 31 December 2025, before the impact of derivatives or other forms of hedging, the Group held $564m of interest-bearing loans and
borrowings denominated in pound sterling and $5,620m denominated in euros.
Hedging arrangements for these loans are summarised in the table below:
2025 | 2024 | |||||
Euro | Pound sterling | Euro | Pound sterling | |||
denominated | denominated | Total | denominated | denominated | Total | |
$m | $m | $m | $m | $m | $m | |
Interest-bearing loans | ||||||
In a net investment hedge 1 | 936 | 469 | 1,405 | 829 | 438 | 1,267 |
In a cash flow hedge 2 | 2,694 | – | 2,694 | 2,387 | – | 2,387 |
In a fair value hedge 2 | 1,634 | – | 1,634 | 1,468 | – | 1,468 |
Not in a designated IFRS 9 hedge | 356 | 95 | 451 | 192 | 110 | 302 |
Total | 5,620 | 564 | 6,184 | 4,876 | 548 | 5,424 |
1
Hedges of underlying net euro and pound sterling investments of the same amount as the loan.
2
Loans in cash flow and fair value hedges are hedged by cross-currency swaps of the same notional value as the loan.
For further details of all designated hedging relationships, please refer to the Hedge accounting section within this Note 28, from page 176.
The accounting treatment for any hedge ineffectiveness is disclosed in the Bank and other borrowings accounting policy from page 134 and
the Foreign currencies accounting policy on page 135 within Group Accounting Policies.
As at 31 December 2025, the Group operates in three countries designated as hyperinflationary, being Argentina, Venezuela and Turkey. The
foreign exchange risk of these markets has been assessed and deemed to be immaterial.
Transactional
The Group aims to hedge all its forecasted major transactional currency exposures on working capital balances, which typically extend for up to
three months. Where practicable, these are hedged using forward foreign exchange contracts. In addition, external dividend payments in pound
sterling to UK shareholders and in Swedish krona to Swedish shareholders are fully hedged from announcement date to payment date. Foreign
exchange gains and losses on forward contracts transacted for transactional hedging are taken to profit and loss or to Other comprehensive
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Notes to the Group Financial Statements
continued
28 Financial risk management objectives and policies
continued
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 100 basis point change in interest rates in all currencies from their levels at 31 December 2025,
with all other variables held constant. Based on the composition of our debt portfolio and cash reserves as at 31 December 2025, a 1% increase
in interest rates would result in an additional $23m in interest expense on the debt and an additional $57m interest income on the cash reserves.
The exchange rate sensitivity analysis assumes an instantaneous 10% change in foreign currency exchange rates from their levels at 31 December
2025, with all other variables held constant. The +10% case assumes a 10% strengthening of the US dollar against all other currencies and the
-10% case assumes a 10% weakening of the US dollar.
Each incremental 10% movement in foreign currency exchange rates would have approximately the same effect as the initial 10% detailed in the
table below and each incremental 1% change in interest rates would have approximately the same effect as the 1% detailed in the table below.
Interest rates | Exchange rates | |||
31 December 2024 | +1% | −1% | +10% | −10% |
Increase/(decrease) in fair value of financial instruments ($m) | 1,407 | (1,561) | 11 | (20) |
Impact on profit: (loss)/gain ($m) | – | – | (117) | 133 |
Impact on equity: gain/(loss) ($m) | – | – | 128 | (152) |
Interest rates | Exchange rates | |||
31 December 2025 | +1% | −1% | +10% | −10% |
Increase/(decrease) in fair value of financial instruments ($m) | 1,266 | (1,406) | 88 | (111) |
Impact on profit: (loss)/gain ($m) | – | – | (13) | 16 |
Impact on equity: gain/(loss) ($m) | – | – | 101 | (126) |
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
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
2025 | 2024 | |
$m | $m | |
Cash at bank and in hand | 1,332 | 1,215 |
Money market liquidity funds | 4,224 | 4,177 |
Other short-term cash equivalents | 155 | 96 |
Total Cash and cash equivalents (Note 18) | 5,711 | 5,488 |
Fixed income securities at fair value through profit or loss (Note 13) | 8 | 37 |
Cash collateral pledged to counterparties (Note 13) | 22 | 129 |
Total derivative financial instruments (Note 14) | 90 | 54 |
Current assets subject to credit risk | 5,831 | 5,708 |
Non-current assets
2025 | 2024 | |
$m | $m | |
Derivative financial instruments (Note 14) | 498 | 182 |
Non-current assets subject to credit risk | 498 | 182 |
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 six external third-party fund managers to maintain an AAA rating. The Group’s investments represent no more than 15% of each
overall fund value. There were no other significant concentrations of financial credit risk at the reporting date.
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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 2025 was $473m
(2024: $181m) and the carrying value of such cash collateral posted by the Group at 31 December 2025 was $22m (2024: $129m). Cash collateral
held by the Group is unencumbered.
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 | Subject to | Financial | ||
financial | master netting | instrument | Net | |
assets/(liabilities) | agreement | collateral | amount | |
31 December 2024 | $m | $m | $m | $m |
Financial assets | ||||
Derivatives | 236 | (45) | (169) | 22 |
Other investments 1 | 129 | – | (112) | 17 |
Total assets | 365 | (45) | (281) | 39 |
Financial liabilities | ||||
Derivatives | (165) | 45 | 112 | (8) |
Other payables 1 | (181) | – | 169 | (12) |
Total liabilities | (346) | 45 | 281 | (20) |
Related amounts not offset | ||||
Gross | Subject to | Financial | ||
financial | master netting | instrument | Net | |
assets/(liabilities) | agreement | collateral | amount | |
31 December 2025 | $m | $m | $m | $m |
Financial assets | ||||
Derivatives | 588 | (63) | (448) | 77 |
Other investments 1 | 22 | – | (17) | 5 |
Total assets | 610 | (63) | (465) | 82 |
Financial liabilities | ||||
Derivatives | (81) | 63 | 17 | (1) |
Other payables 1 | (473) | – | 448 | (25) |
Total liabilities | (554) | 63 | 465 | (26) |
1
Trade receivable exposures are managed locally in the operating units where they arise and credit limits are set as deemed appropriate for the
customer. The Group is exposed to customers ranging from government-backed agencies and large private wholesalers to privately-owned
pharmacies, and the underlying local economic and sovereign risks vary throughout the world. Where appropriate, the Group endeavours to
minimise risks by the use of trade finance instruments such as letters of credit and insurance. The Group applies the expected credit loss
approach to establish an allowance for impairment that represents its estimate of expected losses in respect of Trade receivables.
The Group applies the IFRS 9 simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance to Trade
receivables. To measure expected credit losses, Trade receivables have been grouped based on shared credit characteristics and the days past due.
The expected loss rates are based on payment profiles over a period of 36 months before 31 December 2025 or 31 December 2024 respectively
and the corresponding historical credit losses experienced within this period. The historical loss rates are adjusted to reflect current and
forward-looking information on macroeconomic factors affecting the ability of the customer to settle the receivables.
On that basis, the loss allowance was determined as follows:
0-90 days | 90-180 days | Over 180 days | |||
31 December 2024 | Current | past due | past due | past due | Total |
Expected loss rate | 0.01% | 0.6% | 3.5% | 7.0% | |
Gross carrying amount ($m) | 7,679 | 171 | 86 | 399 | 8,335 |
Loss allowance ($m) | 1 | 1 | 3 | 28 | 33 |
0-90 days | 90-180 days | Over 180 days | |||
31 December 2025 | Current | past due | past due | past due | Total |
Expected loss rate | 0.03% | 1.8% | 3.9% | 10.8% | |
Gross carrying amount ($m) | 9,529 | 272 | 128 | 360 | 10,289 |
Loss allowance ($m) | 3 | 5 | 5 | 39 | 52 |
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Notes to the Group Financial Statements
continued
28 Financial risk management objectives and policies
continued
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 three wholesalers accounted for approximately 78% (2024: 74%; 2023: 80%) of US sales.
The movements of the Group expected credit losses provision are as follows:
2025 | 2024 | 2023 | |
$m | $m | $m | |
At 1 January | 33 | 45 | 59 |
Net movement recognised in the Consolidated Statement of Comprehensive Income | 20 | (3) | (14) |
Amounts utilised, exchange and other movements | (1) | (9) | – |
At 31 December | 52 | 33 | 45 |
Given the profile of our customers, including large wholesalers and government-backed agencies, no further credit risk has been identified with
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 1:1.
Designated hedges are expected to be effective and therefore the impact of ineffectiveness on profit and loss is not expected to be material.
The accounting treatment for fair value hedges and debt designated as FVPL is disclosed in the Bank and other borrowings accounting policy
The following table represents the Group’s continuing designated hedge relationships under IFRS 9.
2023
| Other comprehensive income | |||||||||
Fair value | |||||||||
Opening | Fair value | (gain)/loss | Closing | ||||||
balance | (gain)/loss | recycled to | balance | ||||||
Nominal | Carrying | 1 January | deferred | the Income | 31 December | Average | Average | ||
amounts in | value | 2023 | to OCI | statement | 2023 | maturity | USD FX | Average pay | |
local currency | $m | $m | $m | $m | $m | year | rate | interest rate | |
Cash flow hedges – foreign currency | |||||||||
and interest rate risk 1, 3 | |||||||||
Cross-currency interest rate swaps – Euro bonds | EUR 3,200m | 49 | 34 | (210) | 139 | (37) | 2027 | 1.10 | USD 3.80% |
FX Forwards − short-term FX risk | USD 2,009m | 15 | 12 | (33) | 6 | (15) | 2024 | – | – |
Net investment hedge – foreign exchange risk 2, 3 | |||||||||
Transactions matured pre-2023 | – | (527) | – | – | (527) | – | – | – | |
Cross-currency interest rate swap – JPY investment | JPY 58.3bn | 100 | (55) | (45) | – | (100) | 2029 | 108.03 | JPY 1.53% |
Cross-currency interest rate swap – CNY investment | CNY 458m | (1) | 4 | (3) | – | 1 | 2026 | 6.68 | CNY 4.80% |
Foreign currency borrowing – GBP investment | GBP 350m | 444 | (288) | 24 | – | (264) | 2031 | n/a | GBP 5.75% |
Foreign currency borrowing – EUR investment 5 | EUR 800m | 881 | (102) | 33 | – | (69) | 2029 | n/a | EUR 0.38% |
Contingent consideration liabilities and Acerta Pharma share | |||||||||
purchase liability – AZUK and AZAB USD investments | USD 1,937m | (1,937) | 2,216 | (81) | – | 2,135 | – | – | – |
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2024
| Other comprehensive income | |||||||||
Fair value | |||||||||
Opening | Fair value | (gain)/loss | Closing | ||||||
balance | (gain)/loss | recycled to | balance | ||||||
Nominal | Carrying | 1 January | deferred | the Income | 31 December | Average | Average | ||
amounts in | value | 2024 | to OCI | statement | 2024 | maturity | USD FX | Average pay | |
local currency | $m | $m | $m | $m | $m | year | rate | interest rate | |
Cash flow hedges – foreign currency | |||||||||
and interest rate risk 1, 3 | |||||||||
Cross-currency interest rate swaps – Euro bonds | EUR 2,300m | (36) | (37) | 151 | (180) | (66) | 2029 | 1.08 | USD 4.24% |
FX Forwards − short-term FX risk | USD 2,252m | 4 | (15) | 8 | 3 | (4) | 2025 | – | – |
Net investment hedge – foreign exchange risk 2, 3 | |||||||||
Transactions matured pre-2024 | – | (527) | – | – | (527) | – | – | – | |
Cross-currency interest rate swap – JPY investment | JPY 58.3bn | 146 | (100) | (45) | – | (145) | 2029 | 108.03 | JPY 1.53% |
Cross-currency interest rate swap – CNY investment | CNY 458m | 2 | 1 | (4) | – | (3) | 2026 | 6.68 | CNY 4.80% |
Foreign currency borrowing – GBP investment | GBP 350m | 438 | (264) | (7) | – | (271) | 2031 | n/a | GBP 5.75% |
Foreign currency borrowing – EUR investment 5 | EUR 800m | 829 | (69) | (52) | – | (121) | 2029 | n/a | EUR 0.38% |
Contingent consideration liabilities and Acerta Pharma share | |||||||||
purchase liability – AZUK and AZAB USD investments | USD 1,367m | (1,367) | 2,135 | 181 | – | 2,316 | – | – | – |
2025
| Other comprehensive income | |||||||||
Fair value | |||||||||
Opening | Fair value | (gain)/loss | Closing | ||||||
balance | (gain)/loss | recycled to | balance | ||||||
Nominal | Carrying | 1 January | deferred | the Income | 31 December | Average Average | |||
amounts in | value | 2025 | to OCI | statement | 2025 maturity | USD FX | Average pay | ||
local currency | $m | $m | $m | $m | $m | year | rate | interest rate | |
Cash flow hedges – foreign currency | |||||||||
and interest rate risk 1, 3, 4 | |||||||||
Cross-currency interest rate swaps – Euro bonds | EUR 2,300m | 203 | (66) | (242) | 305 | (3) | 2029 | 1.08 | USD 4.24% |
FX Forwards − short-term FX risk | USD 1,769m | 6 | (4) | (11) | 9 | (6) | 2026 | – | – |
Net investment hedge – foreign exchange risk 2, 3 | |||||||||
Transactions matured pre-2025 | – | (527) | – | – | (527) | – | – | – | |
Cross-currency interest rate swap – JPY investment | JPY 58.3bn | 171 | (145) | (26) | – | (171) | 2029 | 108.03 | JPY 1.53% |
Cross-currency interest rate swap – CNY investment | CNY 458m | 2 | (3) | 1 | – | (2) | 2026 | 6.68 | CNY 4.80% |
Foreign currency borrowing – GBP investment | GBP 350m | 469 | (271) | 31 | – | (240) | 2031 | n/a | GBP 5.75% |
Foreign currency borrowing – EUR investment 5 | EUR 800m | 936 | (121) | 106 | – | (15) | 2029 | n/a | EUR 0.38% |
Contingent consideration liabilities – | |||||||||
AZUK and AZAB USD investments | USD 323m | (323) | 2,316 | (155) | – | 2,161 | – | – | – |
1
Hedge ineffectiveness recognised on swaps designated in a cash flow hedge during the period was $nil (2024: $nil; 2023: $nil).
2
Hedge ineffectiveness recognised on swaps designated in a net investment hedge during the period was $nil (2024: $nil; 2023: $nil).
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 $1,769m represents the USD equivalent notional of the FX forwards. By currency, the nominal amounts were SEK 8,319m at FX rate
9.2158, JPY 14,730m at 156.57, GBP 243m at 0.7430, CNY 1,926m at 6.9901 and EUR 144m at 0.9605. All FX forwards in a cash flow hedge mature on 27 January 2026.
5
The EUR 800m 0.375% 2029 Non-callable bond is designated in a net investment hedge of the foreign currency exposure in relation to an equivalent amount of EUR-denominated net assets.
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 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.
Change in | Change in | |||
fair value | fair value | |||
of hedging | of hedged | Hedge | ||
Nominal | instrument used | item used | ineffectiveness | |
amounts in | to calculate | 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 1,400m | (56) | 54 | (2) |
Change in | Change in | |||
fair value | fair value | |||
of hedging | of hedged | Hedge | ||
Nominal | instrument used | item used | ineffectiveness | |
amounts in | to calculate | to calculate | recognised in | |
As at 31 December 2025 | currency | ineffectiveness | ineffectiveness | profit and loss |
Interest rate and foreign currency risk on finance debt | EUR 1,400m | 172 | (168) | 4 |
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Annual Report & Form 20-F Information 2025
178
Notes to the Group Financial Statements
continued
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.
2025 | 2024 | 2023 | |
Employees | |||
UK | 10,600 | 11,100 | 10,700 |
Rest of Europe | 26,900 | 25,500 | 23,000 |
The Americas | 25,200 | 24,700 | 22,400 |
Asia, Africa & Australasia | 32,400 | 31,600 | 30,300 |
Continuing operations | 95,100 | 92,900 | 86,400 |
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 2025 was 96,100 (2024: 94,300; 2023: 89,900).
The costs incurred during the year in respect of these employees were:
2025 | 2024 | 2023 | |
$m | $m | $m | |
Wages and salaries | 10,974 | 10,340 | 9,341 |
Social security costs | 1,348 | 1,224 | 1,100 |
Pension costs | 618 | 614 | 537 |
Other employment costs | 1,608 | 1,531 | 1,357 |
Total | 14,548 | 13,709 | 12,335 |
Severance costs of $190m are not included above (2024: $283m; 2023: $123m).
The charge for share-based payments in respect of share plans is $719m (2024: $660m; 2023: $579m). During 2025, payments totalling $521m
(2024: $81m) made to the EBT for the purchase of shares are recognised within financing cashflows. Prior to an amendment to the EBT on
10 June 2024, after which AstraZeneca obtained control and commenced consolidation of the EBT, $354m of payments to the EBT were
recognised during 2024 within operating cash flows. The plans are equity settled.
US
In the US, there are two employee short-term, cash settled, performance bonus plans in operation. In addition, the AstraZeneca Performance
Share Plan and the AstraZeneca Global Restricted Share Plan, which are both equity settled, operate in respect of relevant employees in the US.
UK
The AstraZeneca UK Performance Bonus Plan
Employees of participating AstraZeneca UK companies are invited to participate in this cash settled bonus plan.
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 £150 a month to
purchase Partnership Shares in the Company at the current market value. One Matching Share is awarded for every four Partnership Shares
purchased. Partnership Shares and Matching Shares are held in the HM Revenue & Customs (HMRC)-approved All
-Employee Share Plan. New
shares are issued for the purposes of the All-Employee Share Plan.
AstraZeneca Sharesave Plan
The Company provides UK employees with the opportunity to participate in the HMRC-approved Sharesave Plan. Employees can choose
between a 3-year or 5-year savings contract, allowing them to contribute a minimum of £5 and a maximum of £500 per month. At the end of
the savings term, participants have the option to purchase AstraZeneca shares at a predetermined share price.
Sweden
Bonuses are paid 50% into a fund investing in AstraZeneca equities and 50% in cash, with the exception of certain senior management who
are paid 100% in cash.
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.
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The AstraZeneca Deferred Bonus Plan
A portion of the bonus earned under the AstraZeneca Executive Annual Bonus Scheme is deferred into AstraZeneca shares in the Company for
a period of three years. The plan currently operates only in respect of Executive Directors and members of the SET (with awards granted as
AstraZeneca ADRs for members of the SET employed within the US). Awards of shares under this plan are typically made in March each year.
The AstraZeneca Performance Share Plan
This plan was approved by shareholders in 2020 for a period of 10 years, and subsequently amended by approval of shareholders in 2021 and
2024. Generally, awards can be granted at any time, but not during a closed period of the Company. Awards granted under the plan vest after
three years, or in the case of Executive Directors and members of the SET, after an additional two-year holding period, and is subject to the
achievement of performance conditions. For awards granted to all participants in 2025, vesting is subject to a combination of measures focused
on science and innovation, revenue growth, financial performance and carbon reduction. 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, including agreeing performance
targets and which employees should be eligible to participate.
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 four times in 2025 to make awards to 1,503 employees.
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 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 50% of the award will normally vest on the fifth anniversary of grant, with the balance vesting on the tenth anniversary of
grant. The award can be subject to the achievement of performance conditions. 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, including agreeing performance targets
(if any) and which employees should be invited to participate.
Alexion employee share award plan
At acquisition in 2021 Alexion employee share awards were converted into AstraZeneca restricted stock awards that continued to have, and were
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 $57.54. In 2023 an additional 267,000 shares were issued with a grant date fair value of $65.62 which vested in 2023. During
2023, 2,060,000 shares vested, 531,000 were forfeited/cancelled and the closing balance of these awards as of 31 December 2023 was
3,022,000. During 2024, 2,047,000 shares vested, 156,000 were forfeited and the closing balance of these awards as of 31 December 2024
was 819,000. During 2025, 792,000 shares vested, 27,000 were forfeited and the closing balance of these awards as of 31 December 2025
was nil. No further awards will be granted under this plan.
Details of share incentive awards outstanding during the year for the main share plans are shown below:
| The AstraZeneca | The AstraZeneca | The AstraZeneca | The AstraZeneca | |||||
Performance Share Plan | Global Restricted Stock Plan | Restricted Share Plan | Extended Incentive Plan | |||||
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 2023 | 3,630 | 5,724 | 2,469 | 11,683 | 233 | 678 | 259 | 195 |
Granted | 976 | 2,071 | 1,185 | 6,343 | 208 | 436 | 71 | 95 |
Forfeited | (148) | (437) | (187) | (1,417) | (20) | (59) | (8) | – |
Cancelled | – | – | – | (3) | – | – | – | (34) |
Exercised | (813) | (1,470) | (570) | (2,738) | (86) | (288) | (107) | (9) |
Outstanding at 31 December 2023 | 3,645 | 5,888 | 2,897 | 13,868 | 335 | 767 | 215 | 247 |
Granted | 1,064 | 2,250 | 1,262 | 7,014 | 100 | 699 | – | – |
Forfeited | (137) | (400) | (235) | (1,414) | (8) | (57) | (31) | – |
Cancelled | (2) | (2) | – | (6) | (1) | – | – | – |
Exercised | (999) | (1,586) | (755) | (3,296) | (88) | (352) | (22) | – |
Outstanding at 31 December 2024 | 3,571 | 6,150 | 3,169 | 16,166 | 338 | 1,057 | 162 | 247 |
Granted | 904 | 1,974 | 1,045 | 6,428 | 298 | 386 | – | – |
Forfeited | (99) | (553) | (250) | (1,616) | (33) | (214) | – | (48) |
Exercised | (986) | (1,781) | (1,030) | (4,809) | (114) | (343) | – | – |
Outstanding at 31 December 2025 | 3,390 | 5,790 | 2,934 | 16,169 | 489 | 886 | 162 | 199 |
1
Shares issued to Alexion employees under the GRSP are covered under the Alexion employee share award below.
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Notes to the Group Financial Statements
continued
29 Employee costs and share plans for employees
continued
| The AstraZeneca | The AstraZeneca | The AstraZeneca | The AstraZeneca | |||||
Performance Share Plan | Global Restricted Stock Plan | Restricted Share Plan | Extended Incentive Plan | |||||
WAFV 1 | WAFV | WAFV | WAFV | WAFV | WAFV | WAFV | WAFV | |
pence | $ | pence | $ | pence | $ | pence | $ | |
WAFV of 2023 grants | 9929 | 59.95 | 10822 | 65.38 | 11135 | 65.37 | 11,748 | 74.78 |
WAFV of 2024 grants | 9028 | 57.99 | 10085 | 64.91 | 11111 | 75.23 | – | – |
WAFV of 2025 grants | 11054 | 70.34 | 11961 | 75.91 | 12142 | 78.96 | – | – |
1
Weighted average fair value.
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
2025 | 2024 | |
Commitments | $m | $m |
Contracts placed for future capital expenditure on Property, plant and equipment and | ||
software development costs not provided for in these Financial Statements | 1,727 | 1,575 |
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 | 10,182 | 1,226 | 3,698 | 3,013 | 2,245 |
Future potential revenue milestone payments | 21,301 | 45 | 1,290 | 4,742 | 15,224 |
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 2025 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 47, 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 2023, 2024 or 2025.
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.
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181
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 2025 in the aggregate of $107m (2024: $105m), mainly relating to the US.
Where we are jointly liable or otherwise have cost-sharing agreements with third parties, we reflect only our share of the obligation. Where
the liability is insured in part or in whole by insurance or other arrangements for reimbursement, an asset is recognised to the extent that this
recovery is virtually certain.
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 135, 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 $115m and $192m (2024: $113m and $190m) which relates mainly to the US.
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.
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 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.
KJ
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.
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Notes to the Group Financial Statements
continued
30 Commitments, contingent liabilities and contingent assets
continued
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 US Food and Drug Administration (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 2025, 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 in the US. After trial in April 2022, the jury found that | |
the patent was infringed and awarded Seagen $41.82m in past damages. In July 2022, the District Court entered final | |
judgment and declined to enhance damages on the basis of wilfulness. In October 2023, the District Court entered an | |
amended final judgment that requires Daiichi Sankyo to pay Seagen a royalty of 8% on US sales of Enhertu from 1 April | |
2022 through to 4 November 2024, in addition to the past damages previously awarded by the District Court. | |
AstraZeneca and Daiichi Sankyo have appealed the District Court’s decision. | |
• In December 2020 and January 2021, AstraZeneca and Daiichi Sankyo 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 one of the PGR proceedings. In July 2022, the USPTO reversed its institution decision and declined to institute | |
the other PGR petition. AstraZeneca and Daiichi Sankyo requested reconsideration of the decision not to institute review | |
of the patent. In February 2023, the USPTO reinstituted the PGR proceeding. In February 2024, the USPTO issued a | |
decision that the claims were unpatentable. Seagen has appealed this decision; the USPTO has intervened in the appeal. | |
• In December 2025, the US Court of Appeals for the Federal Circuit issued decisions in both the District Court and PGR | |
appeals finding that Seagen’s patent is invalid and vacating the District Court’s prior judgment and damages award. |
Factor Bioscience | Considered to be a contingent liability |
patent proceedings | |
US | • In September 2025, Factor Bioscience Inc. (Factor) filed a complaint against AstraZeneca, and others in the US District |
Court for the District of Delaware, alleging infringement of several Factor patents related to technology for producing | |
gene-edited cells using synthetic messenger ribonucleic acid (mRNA) molecules encoding transcription activator-like | |
effector nuclease (TALEN) gene-editing proteins. | |
• The complaint alleges that certain drug research, design and development activities by AstraZeneca and others | |
infringe Factor’s patents. |
Forxiga patent proceedings | Considered to be a contingent liability |
Europe | • In November 2025, in France, Biogaran SAS challenged one of AstraZeneca’s patents covering Forxiga . No trial date |
has been set. | |
• In Poland and in Portugal, multiple generic companies have challenged one of AstraZeneca’s patents covering Forxiga . | |
No trial date has been set. | |
• In Poland, in January 2026, AstraZeneca obtained interim injunctions against the generic companies that have | |
challenged the patent. |
Forxiga patent proceedings | Matter concluded |
UK | • In the UK, one of AstraZeneca’s patents relating to Forxiga was challenged by Generics (UK) Limited, Teva Pharmaceutical |
Industries Limited, and Glenmark Pharmaceuticals Europe Limited. | |
• Trial regarding patent validity occurred in March 2025. In April 2025, the UK Patents Court held the patent invalid. | |
AstraZeneca appealed the decision. In July 2025, the UK Court of Appeal dismissed AstraZeneca’s appeal and upheld | |
the lower court’s invalidity decision. AstraZeneca’s application for permission to appeal to the UK Supreme Court | |
was denied. | |
• In March 2025 and onward, AstraZeneca obtained injunctions against generic manufacturers’ at-risk sales of dapagliflozin | |
products in the UK. All injunctions have since been lifted. | |
• This matter has concluded. |
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Soliris patent proceedings | Considered to be a contingent liability |
Turkey | • In November 2024, Salute HC İlaçları Sanayi ve Ticaret A.Ş served an action in the Industrial and Intellectual Property |
Rights Court in Turkey seeking to invalidate and enjoin enforcement of AstraZeneca’s patent relating to eculizumab. |
Tagrisso patent proceedings | Considered to be a contingent liability |
China | • In January 2025, an individual filed invalidity challenges against several Chinese patents protecting Tagrisso . |
• A hearing before the Chinese Patent Office (Patent Office) was held in July 2025. | |
• In November 2025, the Patent Office issued decisions maintaining the compound patents. | |
• In January 2026, the Patent Office dismissed the invalidity case against the formulation patent. |
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 $107.5m in past damages. The jury also found that the infringement was not wilful. | |
• 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 | • 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 US District Court for the District of Delaware (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. Trial has been scheduled for April 2027. | |
• In December 2025, AstraZeneca entered into a settlement agreement with MSN and the District Court dismissed the | |
corresponding litigation. The litigation with Cipla is ongoing. |
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 . | |
• AstraZeneca has entered into separate settlement agreements 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. |
Forxiga patent proceedings | Considered to be a contingent asset |
Australia | • In December 2025, in the Federal Court of Australia, AstraZeneca initiated patent infringement litigation against |
Pharmacor Pty Limited in reference to one of the patents that protects Forxiga . | |
• No trial date has been set. |
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Notes to the Group Financial Statements
continued
30 Commitments, contingent liabilities and contingent assets
continued
Lokelma patent proceedings | Matter concluded |
US | • In August 2022, in response to Paragraph IV notices, AstraZeneca initiated ANDA litigation against five generic filers in |
the US District Court for the District of Delaware. | |
• 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 the five generic manufacturers which resulted in | |
dismissal of the corresponding litigations. | |
• This matter is now concluded. |
Lynparza patent proceedings | Considered to be a contingent asset |
Canada | • In July 2025, AstraZeneca was served with a Notice of Allegation from Cipla Ltd. challenging a patent relating to Lynparza . |
AstraZeneca commenced an action in response in August 2025. Trial is scheduled to begin in April 2027. | |
• In August 2025, AstraZeneca was served with a Notice of Allegation from Natco Pharma (Canada) Inc. challenging a | |
patent relating to Lynparza . AstraZeneca commenced an action in response in October 2025. Trial is scheduled to begin | |
in June 2027. | |
• In November 2025, AstraZeneca was served with a Notice of Allegation from Zydus Lifesciences Limited challenging a | |
patent relating to Lynparza . AstraZeneca commenced an action in response in December 2025. No trial date has been set. |
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 | Matter concluded |
Canada | • In May 2023, AstraZeneca initiated patent litigation in Canada alleging that Amgen Canada Inc.’s (Amgen) biosimilar |
eculizumab product infringed AstraZeneca’s patents. | |
• In September 2023, AstraZeneca initiated patent litigations in Canada alleging that Samsung Bioepis Co. Ltd.’s (Samsung) | |
biosimilar eculizumab product infringed AstraZeneca’s patents. | |
• In June and November 2025, AstraZeneca settled with Samsung and Amgen, respectively. |
Soliris patent proceedings | Matter concluded |
Europe | • In March 2024, AstraZeneca filed motions for provisional measures against the relevant corporate entities of Amgen |
Inc. (Amgen) and Samsung Bioepis Co. Ltd. (Samsung ) 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 AstraZeneca patent. In | |
November 2025 and January 2026, AstraZeneca entered into global settlement agreements with Amgen and | |
Samsung, respectively, resolving all eculizumab patent disputes between the parties. |
Soliris patent proceedings | Matter concluded |
UK | • In May 2024, AstraZeneca initiated patent infringement proceedings against Amgen Ltd. (Amgen) and Samsung Bioepis |
UK Limited (Samsung) in the UK High Court of Justice alleging that their respective biosimilar eculizumab products | |
infringe an AstraZeneca patent; on the same day, Samsung initiated a revocation action for the same patent. | |
• In November 2025 and January 2026, AstraZeneca settled the UK eculizumab patent matters with Amgen and | |
Samsung, respectively. |
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Financial Statements
Sustainability Statement
Additional Information
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Tagrisso patent proceedings | Considered to be a contingent asset |
Russia | • In August 2023, AstraZeneca filed lawsuits in the Arbitration Court of the Moscow region (Court) against the Russian |
Ministry of Health (MOH) and Axelpharm LLC (Axelpharm) for improper use of AstraZeneca information in the authorisation | |
of a generic version of Tagrisso . The suit against the MOH was dismissed in July 2024, after two appeals. The case | |
against Axelpharm was dismissed in September 2024, and a subsequent appeal by AstraZeneca was also dismissed. | |
• In November 2023, Axelpharm sought a compulsory licence under a patent related to Tagrisso ; the action remains | |
pending. The Axelpharm patent on which the compulsory licensing action was based was held invalid by the Russian | |
Patent and Trademark Office (PTO) in August 2024 following challenge by AstraZeneca. The PTO’s decision was upheld | |
in June 2025, following an appeal by Axelpharm. At a further appeal hearing in November 2025, the Intellectual Property | |
Court Presidium reversed earlier decisions and held Axelpharm’s patent valid. In January 2026, AstraZeneca appealed | |
to the Supreme Court, which was rejected. AstraZeneca expects to file a further appeal. | |
• In July 2024, AstraZeneca filed a patent infringement claim against Axelpharm in relation to a generic version of Tagrisso . | |
The action was stayed by the court pending resolution of the compulsory licensing action. | |
• In August 2024, after AstraZeneca filed a complaint, the Federal Anti-Monopoly Service of Russia (FAS) initiated a case | |
against Axelpharm and OncoTarget LLC (OncoTarget). In November 2024, the FAS found Axelpharm (but not OncoTarget) | |
to have committed unfair competition. In June 2025, the finding against Axelpharm was reversed on appeal. In December | |
2025, on appeal by AstraZeneca, the appellate decision was affirmed. Also in December 2025, AstraZeneca filed a | |
further appeal. |
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. | |
• The parties have reached a settlement in principle for a non-material amount to resolve the single case scheduled for | |
trial in March 2026. | |
• All remaining claims are filed in Delaware State Court and the earliest trial is now scheduled for September 2026. |
Nexium and Prilosec | A provision has been taken |
US | • AstraZeneca has defended 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. | |
• Between 2022 and 2024, AstraZeneca resolved the claims by way of settlement agreements. | |
• A relatively small number of plaintiffs have opted out of the settlement. |
Nexium and Losec | Matter concluded |
Canada | • In Canada, in July and August 2017, AstraZeneca was served with three putative class action lawsuits. |
• As of September 2025, all three lawsuits have been dismissed. | |
• The Canada proceedings are 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, Inc. 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. | |
• In August 2025, the US Court of Appeals for the Second Circuit decided in the plaintiffs’ favour, ordering the District Court | |
to accept the amended complaint. |
Amyndas Trade | Considered to be a contingent liability |
Secrets Litigation | |
US | • AstraZeneca has been defending a matter filed by Amyndas Pharmaceuticals Member P.C. and Amyndas Pharmaceuticals, |
LLC (collectively Amyndas), in the US District Court for the District of Massachusetts alleging trade secret | |
misappropriation and breach of contract claims against AstraZeneca and Zealand Pharma U.S. Inc. related to | |
Amyndas’ C3 inhibitor candidate. | |
• No trial date has been scheduled. |
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Corporate Governance
Financial Statements
Sustainability Statement
Additional Information
Financial Statements
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Notes to the Group Financial Statements
continued
30 Commitments, contingent liabilities and contingent assets
continued
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 remanding to the | |
Appellate Court for reconsideration under new case law. In January 2026, after reconsideration, the Second Circuit | |
issued a decision again allowing the claims to proceed and returning the matter to the District Court, where AstraZeneca | |
has a separate motion to dismiss pending. |
Definiens | Considered to be a contingent liability |
Germany | • In July 2020, AstraZeneca received a notice of arbitration filed with the German Institution of Arbitration from the sellers |
of Definiens AG (Sellers) regarding the 2014 share purchase agreement (SPA) between AstraZeneca and the Sellers. | |
The Sellers claim that they are owed approximately $140m in earn-outs under the SPA. In December 2023, after an | |
arbitration hearing, the arbitration panel made a final award of $46m in favour of the Sellers. | |
• In March 2024, AstraZeneca filed an application with the Bavarian Supreme Court (Court) to set aside the arbitration award. | |
• In April 2025, the Court ruled in favour of AstraZeneca, annulled the arbitration award, and referred the dispute back to | |
the same arbitration panel for a second determination. | |
• In May 2025, the Sellers appealed the Court’s decision to the German Federal Court of Justice (Court of Justice). | |
AstraZeneca also appealed the decision to refer the dispute back to the same arbitration panel. | |
• In January 2026, the Court of Justice upheld the Court’s decision to annul the arbitration award and referred the dispute | |
back to the same arbitration panel. |
Employment Litigation | Considered to be a contingent liability |
US | • 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. | |
• All but one claim has been resolved by settlement or disposed of by motion practice. |
Novartis Advertising Litigation | Considered to be a contingent liability |
US | • In October 2025, Novartis Pharmaceuticals Corp. filed a lawsuit in the US District Court for the District of Delaware |
alleging false and misleading representation claims under the Lanham Act and state law unfair competition and | |
deceptive practices claims. | |
• The complaint alleges that statements in AstraZeneca’s marketing for treatment for paroxysmal nocturnal hemoglobinuria | |
are false and misleading. |
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 three named plaintiffs, who are former AstraZeneca employees. The case involves claims | |
under the federal and Illinois Equal Pay Acts, with the plaintiffs alleging they were paid less than male employees who | |
performed substantially similar and/or equal work. | |
• 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, and the opt-in period | |
has closed. |
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 case was subsequently transferred to the US District Court for the Southern District of New York. |
Seroquel XR Antitrust Litigation | Matter concluded |
US | • In 2019, AstraZeneca was named in several related complaints in US District Court in Delaware (District Court), including |
several putative class action lawsuits brought on behalf of classes of direct purchasers or end payors of Seroquel XR, | |
alleging 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 one of the generic manufacturers while allowing claims | |
relating to the second generic manufacturer to proceed. | |
• In September 2024, AstraZeneca reached a settlement agreement with one of the plaintiff classes which the | |
court approved. | |
• In May 2025, AstraZeneca resolved the matter with all remaining plaintiffs for a total payment of $97m. In September | |
2025, the District Court approved the class-related portion of the settlement. | |
• This matter is now concluded. |
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Sustainability Statement
Additional Information
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Soliris Antitrust Class Action | Considered to be a contingent liability |
US | • In April 2025, AstraZeneca was named in a lawsuit filed in the US District Court for the District of Massachusetts |
(District Court) alleging antitrust claims on behalf of a potential class of end payors for Soliris from March 2022. | |
• The plaintiff alleges that AstraZeneca violated federal and state antitrust and business practices laws by obtaining | |
improper patents for Soliris , delaying biosimilar entry and improperly extending Soliris ’ market exclusivity. | |
• In December 2025, the District Court partially granted AstraZeneca’s motion to dismiss. |
Syntimmune Milestone Litigation | Considered to be a contingent liability |
US | • In connection with AstraZeneca’s acquisition of Syntimmune, Inc. (Syntimmune) in December 2020, AstraZeneca was |
served with a lawsuit filed by the stockholders’ representative for Syntimmune in Delaware State Court (Court) that | |
alleged, among other things, breaches of the 2018 merger agreement (Merger Agreement). | |
• The stockholders’ representative alleges that AstraZeneca failed to meet its obligations under the Merger Agreement | |
to use commercially reasonable efforts to achieve the milestones. AstraZeneca also filed a claim for breach of the | |
representations in the Merger Agreement. | |
• A trial was held in July 2023. | |
• In September 2024, the Court issued a partial decision, concluding that the first milestone in the amount of $130m was | |
achieved, and that AstraZeneca had breached its contractual obligation to use commercially reasonable efforts to | |
achieve the milestones. The Court requested additional briefing regarding damages and further proceedings regarding | |
AstraZeneca’s claim for breach. | |
• In June 2025, the Court issued a further partial decision awarding an additional $181m in damages on its September | |
2024 breach determination. | |
• Additional proceedings regarding AstraZeneca’s claim are ongoing. |
University of Sheffield | Considered to be a contingent liability |
Contract Dispute | |
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 licence agreement | |
relating to Lynparza . | |
• Trial has been scheduled to begin in June 2026. |
Viela Bio, Inc. | Matter concluded |
Shareholder Litigation | |
US | • In February 2023, AstraZeneca was served with a lawsuit filed in the Delaware State Court (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. | |
• In March 2025, the Delaware Supreme Court affirmed the dismissal. | |
• This matter is now concluded. |
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 two worldwide, royalty- |
bearing patent license agreements with AstraZeneca related to GSK’s product, niraparib. | |
• In May 2021, AstraZeneca filed a lawsuit against GSK in the Commercial Court of England and Wales (Trial Court) | |
alleging that GSK had failed to pay all of the royalties due on niraparib sales under the license agreements. | |
• In April 2023, after trial, the Trial Court issued a decision in AstraZeneca’s favour. | |
• In February 2024, the Court of Appeal reversed the decision. | |
• In March 2024, AstraZeneca filed a request for permission to appeal with the Supreme Court of the United Kingdom. | |
In May 2024, the Supreme Court denied permission to appeal. | |
• The case will return to the Trial Court for further proceedings. |
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Corporate Governance
Financial Statements
Sustainability Statement
Additional Information
Financial Statements
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Notes to the Group Financial Statements
continued
30 Commitments, contingent liabilities and contingent assets
continued
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. |
Beyfortus Civil | Considered to be a contingent liability |
Investigative Demand | |
US | • In March 2025, AstraZeneca received a subpoena from the US Attorney’s Office seeking certain records relating to |
Beyfortus . The subpoena requests that the Company produce various documents from January 2020 to present, | |
including communications related to specific batches of Beyfortus , customer complaints, and FDA inspection reports. | |
• AstraZeneca is cooperating with this enquiry. |
Boston US | Considered to be a contingent liability |
Attorney Investigation | |
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 | Considered to be a contingent liability |
Assessment Matter | |
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 two AstraZeneca subsidiaries in Brazil, as well as to two additional | |
entities, a logistics provider utilised by AstraZeneca and a distributor. The Tax Assessment focuses on the importation | |
of Soliris vials pursuant to AstraZeneca’s free drug supply to patients’ programme in Brazil. | |
• AstraZeneca prevailed in the first level of administrative appeals in the Brazilian federal administrative proceeding system. | |
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. |
China Personal Information | Considered to be a contingent liability |
Infringement and Illegal | |
Trade Matters | |
China | • In relation to the personal information infringement allegation, in April 2025, AstraZeneca Investment (China) Co., Ltd. |
received a Notice of Transfer to the Prosecutor from the Shenzhen Bao’an District Public Security Bureau regarding | |
suspected unlawful collection of personal information. | |
• In relation to the illegal trade allegation, in October 2025, AstraZeneca Investment (China) Co., Ltd. received a final | |
appraisal opinion from the Shenzhen City Customs Office, informing AstraZeneca Investment (China) Co., Ltd. that the | |
total amount of unpaid import taxes is RMB 24m (approximately USD $3.5m). The import taxes mentioned in the Appraisal | |
Opinion relate to Imfinzi , Imjudo , and Enhertu . In October 2025, AstraZeneca Investment (China) Co., Ltd. prepaid the | |
full amount as voluntary compensation to the State. A fine of between one and five times the amount of these paid | |
importation taxes may also be levied if AstraZeneca Investment (China) Co., Ltd. is found liable for illegal trade. | |
• In November 2025, the Shenzhen Prosecutor concluded its evaluation. AstraZeneca Investment (China) Co., Ltd., | |
the former EVP and one former senior employee were indicted on charges of unlawful collection of personal information | |
and illegal trade, although no illegal gain to AstraZeneca Investment (China) Co., Ltd. was alleged resulting from unlawful | |
collection of personal information. | |
• The former EVP and former senior employee were additionally indicted on charges of medical insurance fraud. | |
AstraZeneca Investment (China) Co., Ltd. has not been indicted on charges of medical insurance fraud. | |
• The matters have been consolidated into one proceeding before the Shenzhen City Intermediate Court. No trial date | |
has been scheduled. |
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 in Harrison County, which alleges that AstraZeneca engaged in unlawful | |
marketing practices. | |
• In July 2025, the State of Texas intervened in the matter and filed an amended petition. | |
• In November 2025, the case was transferred to the Texas State Court in Travis County. | |
• No trial date has been scheduled. |
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Corporate Governance
Financial Statements
Sustainability Statement
Additional Information
Financial Statements | Notes to the Group Financial Statements
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US Department of Justice | Considered to be a contingent liability |
Civil Investigative Demand | |
US | • In January 2026, AstraZeneca was served with a civil investigative demand issued by the US Department of Justice, |
seeking documents and information relating to AstraZeneca's data purchases and quality improvement projects. | |
• AstraZeneca is cooperating with this enquiry. |
Vermont US | Considered to be a contingent liability |
Attorney Investigation | |
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 is cooperating in this enquiry. |
Legal proceedings brought by AstraZeneca
340B State Litigation | Considered to be a contingent asset | |
US | • AstraZeneca has filed lawsuits against Arkansas, Colorado, Hawaii, Kansas, Louisiana, Maine, Maryland, Minnesota, | |
Mississippi, Missouri, Nebraska, New Mexico, North Dakota, Oklahoma, Oregon, Rhode Island, South Dakota, | ||
Tennessee, Utah, Vermont, and West Virginia challenging the constitutionality of each state’s 340B statute. | ||
• AstraZeneca has ongoing enforcement actions in Arkansas and Louisiana for alleged non-compliance with each state’s | ||
340B statute. In April 2025, an order was issued in the Arkansas proceeding requiring AstraZeneca to pause its contract | ||
pharmacy policy, which AstraZeneca has appealed. | ||
• In Arkansas, the Court denied a motion to dismiss. | ||
• In Colorado, the Court denied AstraZeneca’s motion for a preliminary injunction, which AstraZeneca has appealed. | ||
• In Kansas, 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 Louisiana, the Court denied AstraZeneca’s motion for summary judgement, which AstraZeneca has appealed. | ||
• In Maryland and Mississippi, the Court denied AstraZeneca’s motion for a preliminary injunction. | ||
• In Minnesota, the Court found that the government officials lacked enforcement authority and dismissed AstraZeneca’s | ||
complaint for lack of standing. | ||
• In Missouri, the Court granted in part and denied in part the state’s motion to dismiss. | ||
• In Oklahoma, the Court granted AstraZeneca’s motion for a preliminary injunction, which Oklahoma has appealed. | ||
• AstraZeneca’s lawsuits are stayed in Rhode Island, Utah, and West Virginia. |
Calquence Inflation | Considered to be a contingent asset |
Reduction Act Litigation | |
US | • In December 2025, AstraZeneca filed a lawsuit in the US District Court for the District of Maryland challenging the |
US Department of Health and Human Services’ interpretation of “qualifying single source drug” under the Inflation | |
Reduction Act and its application in selecting Calquence for drug price negotiation. |
Farxiga Inflation | Considered to be a contingent asset |
Reduction Act Litigation | |
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. | |
• In May 2025, the US Court of Appeals for the Third Circuit affirmed the District Court’s dismissal of AstraZeneca’s challenge. | |
• In September 2025, AstraZeneca sought review by the US Supreme Court. |
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.
Tax
AstraZeneca considers whether it is probable that a taxation authority will accept an uncertain tax treatment. Where acceptance of an uncertain
tax treatment is not considered probable, 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. Due to inherent complexities in the
resolution of the uncertain tax treatments and the resulting liabilities due, management exercise judgement in the measurement of the potential
liability, based on information available at the present time.
Tax liabilities for uncertain tax treatments can be built up over a long period of time but the resolution occurs at a point in time. Therefore, to the
extent the information changes in future periods, there may be adjustments to the liabilities, which may have either a negative or positive effect
on our results. Such changes could arise from commencement, progress or conclusion of tax authority challenge, negotiations under competent
authority arrangements in relevant double tax treaties and expiry of relevant statutes of limitation. Details of the movements of material uncertain
tax treatments are included below.
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Corporate Governance
Financial Statements
Sustainability Statement
Additional Information
Financial Statements
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Notes to the Group Financial Statements
continued
30 Commitments, contingent liabilities and contingent assets
continued
KJ
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 $1,104m (2024: $1,321m). The net
tax liability consists of $1,126m (2024: $1,157m) included within income tax payable, $1,628m (2024: $1,304m) included within deferred tax
asset, partially offset by $205m (2024: $122m) included within deferred tax liabilities, and $1,445m (2024: $1,018m) included within income
tax receivable.
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 $120m (2024: $384m). The decrease in the net tax liability for uncertain tax positions relating to transfer pricing
of $264m compared with 2024 is mainly as a result of a decrease of tax liabilities arising from updates to estimates of prior period tax liabilities
following progression of tax authority reviews.
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,
as discussed above.
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 $79m (2024: $422m) including
associated interest.
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 $984m (2024: $937m) relating to a number of other uncertain tax treatments. The increase of $47m in the net
tax liability relating to the other uncertain tax treatments mainly relates to an update to tax liabilities following progress of reviews by tax authorities
which are offset by movements relating to uncertainty over the timing of tax deductions. This uncertainty includes movements between income
taxes receivable of $1,391m (2024: $742m), and deferred tax liabilities of $234m (2024: $133m) offset by related deferred tax assets of $1,611m
(2024: $929m) and income taxes payable of $496m (2024: $269m). The liability includes tax liabilities in respect of uncertain tax treatments
which are estimated using the most likely amount method and the expected value method and depend on AstraZeneca’s assessment of the
likelihood of the approach taken by the tax authorities.
AstraZeneca estimates the potential for additional liabilities due to other uncertain tax treatments above the amount provided where the possibility
of the additional liabilities falling due is more than remote, to be up to $127m (2024: $214m) including associated interest. AstraZeneca does
not believe there are any significant other uncertain tax treatments where the possibility of the additional liabilities falling due is more than
remote (2024: $nil). Management believes that it is unlikely that these additional liabilities will arise.
The Group is currently under audit in several countries and the timing of any resolution of these audits is uncertain.
It is possible that tax payments may be required in relation to a number of 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.
Strategic Report
Corporate Governance
Financial Statements
Sustainability Statement
Additional Information
Financial Statements | Notes to the Group Financial Statements
AstraZeneca
Annual Report & Form 20-F Information 2025
191
31 Statutory and other information
2025 | 2024 | 2023 | |
$m | $m | $m | |
Fees payable to PricewaterhouseCoopers LLP and its associates: | |||
Group audit fee | 12.5 | 10.6 | 10.2 |
Fees payable to PricewaterhouseCoopers LLP and its associates for other services: | |||
The audit of subsidiaries pursuant to legislation | 15.8 | 14.8 | 15.0 |
Attestation under s404 of Sarbanes-Oxley Act 2002 | 3.7 | 3.5 | 3.3 |
Audit-related assurance services | 1.3 | 2.2 | 1.1 |
Other assurance services | 0.2 | 0.3 | 0.2 |
Fees payable to PricewaterhouseCoopers Associates in respect of the Group’s pension schemes: | |||
The audit of subsidiaries’ pension schemes | 0.3 | 0.4 | 0.3 |
33.8 | 31.8 | 30.1 |
Sustainability assurance
KPMG were appointed the Group’s sustainability assurance provider for the year ended 31 December 2025, with $2.8m fees payable for the
service. Fees of $0.5m for the audit of subsidiaries and $0.1m for other assurance services were also payable to KPMG and its associates in
the year.
The Group had no material related party transactions which might reasonably be expected to influence decisions made by the users of these
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.
2025 | 2024 | 2023 | |
$’000 | $ʼ000 | $ʼ000 | |
Short-term employee benefits | 39,483 | 40,893 | 38,636 |
Post-employment benefits | 995 | 1,045 | 1,354 |
Share-based payments | 58,915 | 49,121 | 58,242 |
99,393 | 91,059 | 98,232 |
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 2025 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 2025.
At 31 December 2025 | Group Interest |
Wholly owned subsidiaries | |
Algeria | |
AAPM SARL | 100% |
20, Zone Macro-Economique, Hydra, | |
Dar El Medina, Algiers, Algeria | |
Argentina | |
AstraZeneca S.A. | 100% |
Olga Cossettini 363, 3° floor, | |
Buenos Aires, Argentina | |
Alexion Pharma Argentina SRL | 100% |
Avenida Leandro N. Alem 592 Piso 6, | |
Buenos Aires, Argentina | |
Australia | |
AstraZeneca Holdings Pty Limited | 100% |
AstraZeneca Pty Limited | 100% |
Alexion Pharmaceuticals Australasia Pty Ltd | 100% |
66 Talavera Road, Macquarie Park, | |
NSW 2113, Australia | |
LogicBio Australia Pty Limited | 100% |
Level 40, 2-26 Park Street, Sydney, | |
NSW 2000, Australia | |
Austria | |
AstraZeneca Österreich GmbH | 100% |
Alexion Pharma Austria GmbH | 100% |
Rechte Wienzeile 223, 1120 Wien, Austria | |
Belgium | |
AstraZeneca S.A. / N.V. | 100% |
Alfons Gossetlaan 40, bus 201, | |
1702 Groot-Bijgaarden, Belgium | |
Alexion Pharma Belgium Sprl | 100% |
Alexion Services Europe Sprl | 100% |
Rue des Deux Eglises 29-33, | |
1000 Brussels, Belgium | |
EsoBiotec SA 1 | 100% |
Rue André Dumont 5, | |
1435 Mont-Saint-Guibert, Belgium | |
Bermuda | |
Alexion Bermuda Holding ULC | 100% |
Alexion Bermuda Limited | 100% |
Alexion Bermuda Partners LP | 100% |
Victoria Place, 5th Floor, 31 Victoria Street, | |
Hamilton, HM 10, Bermuda | |
Brazil | |
AstraZeneca do Brasil Limitada | 100% |
Rod. Raposo Tavares, KM 26, 9, Cotia, Brazil | |
Alexion Farmacêutica América Latina | 100% |
Serviços de Administração de Vendas Ltda. | |
Alexion Serviços e Farmacêutica | 100% |
do Brasil Ltda. | |
Av. Dr Chucri Zaidan, 1240, 15° andar, | |
CEP 04711-130, Ed. Morumbi Corporate – | |
Golden Tower Vila São Francisco, | |
São Paulo, Brazil |
At 31 December 2025 | Group Interest |
British Virgin Islands | |
Gracell Biotechnologies Holdings Limited | 100% |
Office of Sertus Incorporations (BVI) Limited, | |
Sertus Chambers, P.O. Box 905, | |
Quastisky Building, Road Town, | |
Tortola, British Virgin Islands | |
Bulgaria | |
AstraZeneca Bulgaria EOOD | 100% |
51 Cherni Vrah Bld., Business Garden Office X, | |
floor 10, Lozenets district, 1407 Sofia, Bulgaria | |
Canada | |
AstraZeneca Canada Inc. | 100% |
Evinova Canada Inc. | 100% |
Suite 5000, 1004 Middlegate Road, | |
Mississauga, ON, L4Y 1M4, Canada | |
Alexion Pharma Canada Corp. | 100% |
Suite 1300, 1969 Upper Water Street, Halifax, | |
NS, B3J 3R7, Canada | |
Fusion Pharmaceuticals Inc. | 100% |
270 Longwood Road South, Hamilton, | |
ON, L8P 0A6, Canada | |
Cayman Islands | |
AZ Reinsurance Limited | 100% |
18 Forum Lane, 2nd Floor, Camana Bay, | |
Grand Cayman, P.O. Box 69, Cayman Islands | |
Gracell Biotechnologies Inc. | 100% |
P.O. Box 309, Ugland House, Grand Cayman, | |
KY1-1104, Cayman Islands | |
Chile | |
AstraZeneca S.A. | 100% |
AstraZeneca Farmaceutica Chile Limitada | 100% |
Av. Isidora Goyenechea 3477, 2nd Floor, | |
Las Condes, Santiago, Chile | |
China | |
Alexion Pharmaceuticals (Shanghai) | 100% |
Company Limited (in liquidation) | |
Room 1703, Level 17, No. 88 Xizang North | |
Road, Jing’an District, Shanghai, China | |
AstraZeneca Global R&D (Beijing) Co., Ltd | 100% |
Room 1101, Floor 11, Building No. 4, | |
No. 8 Courtyard, No. 1 Kegu Street, Beijing | |
Economic-Technological Development Area, | |
Beijing, China | |
AstraZeneca Global R&D (China) Co., Ltd. | 100% |
16F, 88 Xizang North Road, Jing’an District, | |
Shanghai, China | |
AstraZeneca Investment (China) Co., Ltd. | 100% |
199 Liangjing Road, Pilot Free Trade Zone, | |
Shanghai, China | |
AstraZeneca Investment Consulting | 100% |
(Wuxi) Co., Ltd. | |
Room 808, 8F, Building 99-2 Linghu Avenue, | |
Xinwu District, Wuxi, Jiangsu, China | |
AstraZeneca Pharmaceutical Co., Ltd. | 100% |
No. 2, Huangshan Road, Wuxi, | |
Jiangsu Province, China |
At 31 December 2025 | Group Interest |
AstraZeneca Pharmaceutical | 100% |
(Beijing) Co., Ltd. | |
1F, Building No. 4, No. 8 Courtyard, | |
No. 1 Kegu Street, Beijing Economic- | |
Technological Development Area, | |
Beijing, China | |
AstraZeneca Pharmaceutical | 100% |
(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 | 100% |
(Guangzhou) Co., Ltd. | |
Room 406-178, No. 1, Yichuang Street, | |
(China-Singapore Guangzhou Knowledge City) | |
Huangpu District, Guangzhou City, China | |
AstraZeneca Pharmaceutical | 100% |
(Hangzhou) Co., Ltd. | |
12F & 14F, Building 1, Shuli Plaza, | |
758 Fei Jia Tang Road, Gongshu District, | |
Hangzhou, Zhejiang Province, China | |
AstraZeneca Pharmaceutical | 100% |
Manufacturing (Qingdao) Co., Ltd. | |
AstraZeneca Pharmaceutical | 100% |
(Qingdao) Co., Ltd. | |
Floor 8, Building 2, | |
82 Juxianqiao Road, High-tech Zone, | |
Qingdao, Shandong Province, China | |
AstraZeneca Pharmaceutical | 100% |
(Shanghai) Co., Ltd. | |
B1F, 8F & 9F, 88 Xizang North Road, | |
Jing’an District, Shanghai, China | |
AstraZeneca Pharmaceuticals | 100% |
(China) Co., Ltd. | |
88 Yaocheng Avenue, | |
Jiangsu Province, Taizhou, China | |
AstraZeneca Rare Disease R&D | 100% |
(Beijing) Co., Ltd | |
Room 1102, Floor 11, Building No. 4, | |
No. 8 Courtyard, No. 1 Kegu Street, | |
Beijing Economic-Technological | |
Development Area, Beijing, China | |
AstraZeneca (Wuxi) Trading Co., Ltd. | 100% |
Building E (Building No. 5), Huirong | |
Commercial Plaza, East Jinghui Road, | |
Xinwu District, Wuxi, China | |
Beijing Falikang Pharmaceutical Co., Ltd. | 100% |
Room 113, Floor 1, Unit 1, Building No. 6, No. | |
88 Kechuang 6th Street, Beijing Economic- | |
Technological Development Area, | |
Beijing, China | |
FibroGen (China) Medical Technology | 100% |
Development Co., Ltd | |
Building A2, No. 88 Kechuang 6th Street, | |
Beijing Economic-Technological Development | |
Area, Beijing, China | |
Gracell Biomedicine (Shanghai) Co., Ltd. 2 | 100% |
12th Floor, Building 1, No. 926, Yishan Road, | |
Xuhui District, Shanghai 200233, China |
Strategic Report
Corporate Governance
Financial Statements
Sustainability Statement
Additional Information
Financial Statements
AstraZeneca
Annual Report & Form 20-F Information 2025
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Strategic Report
Corporate Governance
Financial Statements
Sustainability Statement
Additional Information
Financial Statements | Group Subsidiaries and Holdings
AstraZeneca
Annual Report & Form 20-F Information 2025
193
At 31 December 2025 | Group Interest |
Shanghai Evinova Medical | 100% |
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. | 100% |
1st-4th Floor, Building 1, No. 418 Guilin Road, | |
Xuhui District, Shanghai 200233, China | |
Suzhou Gracell Bioscience Co., Ltd. | 100% |
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. | 100% |
Av Carrera 9 No. 101-67 Office 601, | |
Bogotá, 110231, Colombia | |
Costa Rica | |
AstraZeneca CAMCAR Costa Rica, S.A. | 100% |
San José, Escazú, Roble Corporate Center, | |
5to piso, Costa Rica | |
Croatia | |
AstraZeneca d.o.o. | 100% |
Ulica Vjekoslava Heinzela 70, | |
10 000 Zagreb, Croatia | |
Czech Republic | |
AstraZeneca Czech Republic, s.r.o. | 100% |
Alexion Pharma Czech s.r.o. | 100% |
U Trezorky 921/2, 158 00 Prague 5, | |
Czech Republic | |
Denmark | |
AstraZeneca A/S | 100% |
Johanne Møllers Passage 1, Dk-1799, | |
Copenhagen V, Denmark | |
Egypt | |
AstraZeneca Egypt for Pharmaceutical | 100% |
Industries SAE | |
6th of October City, 6th Industrial Zone, | |
Plot 2, Giza, Egypt | |
AstraZeneca Egypt LLC | 100% |
47 St. 270 New Maadi, Cairo, Egypt | |
Drimex LLC | 100% |
Plot 133, Banks’ District, 5th Settlement, | |
New Cairo, Cairo, Egypt | |
Estonia | |
AstraZeneca Eesti OÜ | 100% |
Harju maakond, Tallinn, Lasnamäe linnaosa, | |
Valukoja tn 8/1, 11415, Estonia | |
Finland | |
AstraZeneca Oy. | 100% |
Keilaranta 18, 02150 Espoo, Finland | |
France | |
Amolyt Pharma SAS 1 | 100% |
15 Chemin du Saquin, Espace Européen, | |
69130 Écully, France | |
AstraZeneca SAS | 100% |
Tour Carpe Diem-31, Place des Corolles, | |
92400 Courbevoie, France | |
AstraZeneca Reims Production SAS | 100% |
Chemin de Vrilly Parc, Industriel de la Pompelle, | |
51100 Reims, France |
At 31 December 2025 | Group Interest |
AstraZeneca Dunkerque Production SCS | 100% |
224 Avenue de la Dordogne, | |
59640 Dunkerque, France | |
Alexion Europe SAS | 100% |
Alexion Pharma France SAS | 100% |
15 Chemin du Saquin, Espace Européen, | |
69130 Écully, France | |
Germany | |
AstraZeneca GmbH | 100% |
AstraZeneca Holding GmbH 3 | 100% |
Friesenweg 26, 22763, Hamburg, Germany | |
AstraZeneca Computational Pathology GmbH 1 | 100% |
Alexion Pharma Germany GmbH | 100% |
Landsberger Straße 300, 80687, | |
Munich, Germany | |
Greece | |
AstraZeneca S.A. | 100% |
Agisilaou 6-8 Marousi, Athens, Greece | |
Hong Kong | |
AstraZeneca HK Holdings Company Limited | 100% |
AstraZeneca Hong Kong Limited | 100% |
Unit 1 – 3, 11/F., China Taiping Finance Centre, | |
18 King Wah Road, North Point, Hong Kong | |
FibroGen International (Hong Kong) Limited | 100% |
26th Floor, Three Exchange Square, | |
8 Connaught Place Central, Hong Kong | |
Gracell Biotechnologies (HK) Limited | 100% |
C&F Secretarial Services Limited, Unit 3A, | |
12/F, Kaiser Centre, No. 18 Centre Street, | |
Sai Ying Pun, Hong Kong | |
Hungary | |
AstraZeneca Kft | 100% |
1st floor, 4 building B, Alíz str., | |
Budapest, 1117, Hungary | |
India | |
AstraZeneca India Private Limited 4 | 100% |
Block A, Neville Tower, 11th Floor, | |
Ramanujan IT SEZ, Taramani, Chennai, | |
Tamil Nadu, PIN 600113, India | |
Alexion Business Services Private Limited | 100% |
9th Floor, Platina, G Block Plot No. C-59, | |
Bandra-Kurla Complex Bandra (East), | |
Mumbai 400051, India | |
Evinova Health Tech India Private Limited 4 | 100% |
496/4, II Floor, 10th Cross, Near Bashyam | |
Circle, Sadashivanagar, Bangalore – 560080, | |
Karnataka, India | |
Indonesia | |
P.T. AstraZeneca Indonesia | 100% |
Perkantoran Hijau Arkadia, Tower G, 16th Floor, | |
Unit 02-05, Jl. T.B. Simatupang Kav. 88, | |
Kebagusan, Pasar Minggu, South Jakarta | |
12520, DKI Jakarta, Indonesia | |
Iran | |
AstraZeneca Pars Company | 100% |
Suite 1, 1st Floor No. 39, Alvand Ave., | |
Argantin Sq., Tehran 1516673114, Iran |
At 31 December 2025 | Group Interest |
Ireland | |
AstraZeneca Pharmaceuticals (Ireland) | 100% |
Designated Activity Company | |
4th Floor, South Bank House, Barrow Street, | |
Dublin 4, Republic of Ireland | |
Alexion Pharma Holding Limited | 100% |
Alexion Pharma International | 100% |
Operations Limited | |
Alexion Pharma Development Limited | 100% |
AstraZeneca Ireland Limited | 100% |
College Business & Technology Park, | |
Blanchardstown Road North, Dublin 15, | |
Republic of Ireland | |
Israel | |
AstraZeneca (Israel) Ltd | 100% |
Atirei Yeda 1, Building O-Tech 2, POB 8044, | |
Kfar Saba, 4464301, Israel | |
Alexion Pharma Israel Ltd | 100% |
1 Atirei Yeda Street O-Tech Building No. 2, | |
5th Floor Kfar Saba, 4464301, Israel | |
Italy | |
Simesa SpA | 100% |
AstraZeneca SpA | 100% |
Alexion Pharma Italy Srl | 100% |
Viale Decumano 39, 20157 Milan, Italy | |
Japan | |
AstraZeneca K.K. | 100% |
3-1, Ofuka -cho, Kita-ku, Osaka, | |
530-0011, Japan | |
Alexion Pharma GK | 100% |
Tamachi Station Tower N 3-1-1, Shibaura, | |
Minato-ku Tokyo 108 -0023, Japan | |
Kazakhstan | |
AstraZeneca Kazakhstan Limited | 100% |
Liability Partnership | |
Office 101, 77 Kunayev Street, | |
Almaty 050000, Kazakhstan | |
Kenya | |
AstraZeneca Pharmaceuticals Limited | 100% |
L.R. No.1/1327, Avenue 5, 1st Floor, | |
Rose Avenue, Nairobi, Kenya | |
Latvia | |
AstraZeneca Latvija SIA | 100% |
Skanstes iela 50, Riga, LV-1013, Latvia | |
Lithuania | |
AstraZeneca Lietuva UAB | 100% |
Spaudos g., Vilnius, LT-05132, Lithuania | |
Luxembourg | |
AstraZeneca Luxembourg S.A. | 100% |
Rue Nicolas Bové 2A – L-1253, Luxembourg | |
Malaysia | |
AstraZeneca Asia-Pacific Business | 100% |
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 | 100% |
The Bousteador, Level 11 & 12, No. 10, Jalan | |
PJU 7/6, Mutiara Damansara, 47800 Petaling | |
Jaya, Selangor Darul Ehsan, Malaysia |
Strategic Report
Corporate Governance
Financial Statements
Sustainability Statement
Additional Information
Financial Statements
AstraZeneca
Annual Report & Form 20-F Information 2025
194
Group Subsidiaries and Holdings
continued
At 31 December 2025 | Group Interest |
Mexico | |
AstraZeneca Health Care Division, | 100% |
S.A. de C.V. | |
AstraZeneca, S.A. de C.V. | 100% |
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. | 100% |
Paseo de los Tamarindos 90, | |
Torre 1 piso 6 - A Col., Bosques de la Lomas, | |
CP 05120 D.F, Mexico | |
Morocco | |
AstraZeneca Maroc SARLAU | 100% |
CFC (Casablanca Finance City), | |
Le Continental Business Center, Bâtiment C, | |
7ème étage, Quartier Hay Hassani, | |
Casablanca, Morocco | |
The Netherlands | |
Alexion Holding B.V. | 100% |
Alexion Pharma Foreign Holdings, B.V. | 100% |
Alexion Pharma Netherlands B.V. | 100% |
AstraZeneca B.V. | 100% |
AstraZeneca Continent B.V. | 100% |
AstraZeneca Gamma B.V. | 100% |
AstraZeneca Holdings B.V. | 100% |
AstraZeneca Jota B.V. | 100% |
AstraZeneca Rho B.V. | 100% |
AstraZeneca Sigma B.V. | 100% |
AstraZeneca Treasury B.V. | 100% |
AstraZeneca Zeta B.V. | 100% |
Prinses Beatrixlaan 582, 2595 BM, | |
The Hague, The Netherlands | |
AstraZeneca Nijmegen B.V. | 100% |
Lagelandseweg 78, 6545 CG Nijmegen, | |
The Netherlands | |
Acerta Pharma B.V. | 100% |
Aspire Therapeutics B.V. | 100% |
Kloosterstraat 9, 5349 AB, Oss, | |
The Netherlands | |
Portola Netherlands B.V. (in liquidation) | 100% |
Basisweg 10, 1043 AP, Amsterdam, | |
The Netherlands | |
Neogene Therapeutics B.V. | 100% |
35C Tafelbergweg, 1105 BC, Amsterdam, | |
The Netherlands | |
New Zealand | |
AstraZeneca Limited | 100% |
Pharmacy Retailing (NZ) Limited t/a | |
Healthcare Logistics, 58 Richard Pearse Drive, | |
Mangere, Auckland, 1142, New Zealand | |
Nigeria | |
AstraZeneca Nigeria Limited | 100% |
42 Vibranium Valley, Local Airport Road, Ikeja, | |
Lagos, Nigeria | |
Norway | |
AstraZeneca AS | 100% |
Karvesvingen 7, 0579 Oslo, Norway |
At 31 December 2025 | Group Interest |
Pakistan | |
AstraZeneca Pharmaceuticals Pakistan | 100% |
(Private) Limited 5 | |
Office No 1, 2nd Floor, Sasi Arcade, Block 7, | |
Main Clifton Road, Karachi, Pakistan | |
Panama | |
AstraZeneca CAMCAR, S.A. | 100% |
Bodega #1, Parque Logistico MIT, | |
Carretera Hacia Coco Solo, Colon, Panama | |
Peru | |
AstraZeneca Peru S.A. | 100% |
Calle Las Orquídeas N° 675, Int. 802, | |
Edificio Pacific Tower, San Isidro, Lima, Peru | |
Philippines | |
AstraZeneca Pharmaceuticals (Phils.) Inc. | 100% |
18th Floor, EcoPrime Tower, 32nd Street | |
corner 9th Avenue, Bonifacio Global City, | |
Taguig City, 1634, Philippines | |
Poland | |
AstraZeneca Pharma Poland Sp.z.o.o. | 100% |
Alexion Pharma Poland Sp.z.o.o. | 100% |
Evinova Poland sp. z o.o | 100% |
Postępu 14, 02-676, Warszawa, Poland | |
Portugal | |
Astra Alpha Produtos Farmacêuticos Lda | 100% |
AstraZeneca Produtos Farmacêuticos Lda | 100% |
Novastra Promoção e Comércio | 100% |
Farmacêutico Lda | |
Novastuart Produtos Farmacêuticos Lda | 100% |
Stuart-Produtos Farmacêuticos Lda | 100% |
Zeneca Epsilon – | 100% |
Produtos Farmacêuticos Lda | |
Zenecapharma Produtos Farmacêuticos, | 100% |
Unipessoal Lda | |
Rua Humberto Madeira, No 7, Queluz de Baixo, | |
2730-097, Barcarena, Portugal | |
Puerto Rico | |
IPR Pharmaceuticals, Inc. | 100% |
Road 188, San Isidro Industrial Park, | |
Canóvanas, 00729, Puerto Rico | |
Romania | |
AstraZeneca Pharma S.R.L. | 100% |
Bucharest, 1A Tipografilor Street, | |
MUSE Offices, 2nd and 3rd Floor, | |
District 1, 013714, Romania | |
Russia | |
AstraZeneca Industries OOO LLC | 100% |
81 Vostochniy Lane, Dobrino Village, | |
Borovskiy District, Kaluga Region, | |
249006, Russian Federation | |
AstraZeneca Pharmaceuticals LLC | 100% |
1 Krasnogvardeyskiy Lane 21, Bld.1, | |
Floors 20-30, Moscow, 123112, | |
Russian Federation | |
Alexion Pharma LLC | 100% |
12 Presnenskaya Embankment, Premises 1/36, | |
Moscow, 123112, Russian Federation |
At 31 December 2025 | Group Interest |
Saudi Arabia | |
AstraZeneca Continent – | 100% |
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 | 100% |
8125 Prince Sultan, 2086 Ar Rawdah District, | |
23435, Jeddah, Kingdom of Saudi Arabia | |
Singapore | |
AstraZeneca Pharmaceuticals | 100% |
Singapore Pte. Limited | |
AstraZeneca Singapore Pte Ltd | 100% |
10 Kallang Avenue #12-10, Aperia Tower 2, | |
339510, Singapore | |
South Africa | |
AstraZeneca Pharmaceuticals (Pty) Limited | 100% |
17 Georgian Crescent West, | |
Northdowns Office Park, | |
Bryanston, 2191, South Africa | |
South Korea | |
AstraZeneca Korea Co. Ltd | 100% |
21st Floor, Asem Tower, 517, Yeongdong-daero, | |
Gangnam-gu, Seoul 06164, Republic of Korea | |
Alexion Pharma Korea LLC | 100% |
41 FL., 152 Teheran-ro | |
(Yeoksam-dong Gangnam Finance Center), | |
Gangnam-gu, Seoul 06164, Republic of Korea | |
Spain | |
AstraZeneca Farmaceutica Holding Spain SA | 100% |
AstraZeneca Farmaceutica Spain SA | 100% |
Evinova Spain SL | 100% |
Fundación AstraZeneca | 100% |
Laboratorio Beta SA | 100% |
Laboratorio Lailan SA | 100% |
Laboratorio Tau SA | 100% |
Calle del Puerto de Somport, 21-23, | |
Madrid 28050, Spain | |
Alexion Pharma Spain SL | 100% |
Avinguda de Roma, 81, Floor 7, | |
Barcelona 08028, Spain | |
Sweden | |
AstraZeneca AB | 100% |
AstraZeneca Biotech AB | 100% |
AstraZeneca BioVentureHub AB | 100% |
AstraZeneca International | 100% |
Holdings Aktiebolag | |
AstraZeneca Pharmaceuticals Aktiebolag | 100% |
AstraZeneca Södertälje 2 AB | 100% |
SE-151 85 Södertälje, Sweden | |
Evinova AB | 100% |
431, 53 Mölndal, Stockholm, | |
Södertälje, Sweden | |
Alexion Pharma Nordics Holding AB | 100% |
Alexion Pharma Nordics AB | 100% |
Hagaplan 4, 113 68 Stockholm, Sweden |
Strategic Report
Corporate Governance
Financial Statements
Sustainability Statement
Additional Information
Financial Statements | Group Subsidiaries and Holdings
AstraZeneca
Annual Report & Form 20-F Information 2025
195
At 31 December 2025 | Group Interest |
Switzerland | |
Alexion Pharma GmbH | 100% |
AstraZeneca AG | 100% |
Evinova AG | 100% |
Neuhofstrasse 34, 6340 Baar, Switzerland | |
SixPeaks Bio AG | 100% |
Aeschenvorstadt 36, 4501 Basel, Switzerland | |
Spirogen Sarl (in liquidation) | 100% |
Rue du Grand-Chêne 5, | |
CH-1003 Lausanne, Switzerland | |
Taiwan | |
Alexion Pharma Taiwan Ltd | 100% |
AstraZeneca Taiwan Limited | 100% |
21st Floor, Taipei Metro Building 207, | |
Tun Hwa South Road, SEC 2 Taipei, Taiwan | |
Thailand | |
AstraZeneca (Thailand) Limited | 100% |
Asia Centre 19th floor, 173/20, South Sathorn Rd, | |
Khwaeng Thungmahamek, Khet Sathorn, | |
Bangkok, 10120, Thailand | |
Tunisia | |
AstraZeneca Tunisie SaRL | 100% |
Lot n°1.5.5 les jardins du lac, | |
bloc B les berges du lac Tunis, Tunisia | |
Turkey | |
AstraZeneca İlaç Sanayi ve | 100% |
Ticaret Limited Şirketi | |
Zeneca İlaç Sanayi ve Ticaret Anonim Şirketi | 100% |
(in liquidation) | |
Esentepe Mah. Büyükdere Cad. Levent 199 | |
No: 199 İç Kapı No: 93 Şişli, İstanbul, Turkey | |
Alexion İlaç Ticaret Limited Şirketi | 100% |
İçerenköy Mahallesi Umut SK. and Ofis Sit. No: | |
10 12/73 Ataşehir, Istanbul 10-12/73, Turkey | |
Ukraine | |
AstraZeneca Ukraina LLC | 100% |
54 Simi Prakhovykh Street, | |
Kyiv, 01033, Ukraine | |
United Arab Emirates | |
AstraZeneca FZ-LLC | 100% |
Dubai Sciences Park Towers, Tower South, | |
S1706S, Dubai Sciences Park, Dubai, | |
United Arab Emirates | |
United Kingdom | |
Alexion Pharma UK Limited | 100% |
Ardea Biosciences Limited | 100% |
Astra Pharmaceuticals Limited | 100% |
AstraPharm | 100% |
AstraZeneca China UK Limited | 100% |
AstraZeneca Death In Service Trustee Limited | 100% |
AstraZeneca Employee Share Trust Limited | 100% |
AstraZeneca Finance Limited | 100% |
AstraZeneca Intermediate Holdings Limited 6 | 100% |
AstraZeneca Investments Limited | 100% |
AstraZeneca Japan Limited | 100% |
AstraZeneca Nominees Limited | 100% |
AstraZeneca Quest Limited | 100% |
At 31 December 2025 | Group Interest |
AstraZeneca Share Trust Limited | 100% |
AstraZeneca Sweden Investments Limited | 100% |
AstraZeneca Treasury Limited | 100% |
AstraZeneca UK Limited | 100% |
AstraZeneca US Investments Limited 6 | 100% |
AZENCO4 Limited | 100% |
AZENCO6 Limited | 100% |
Cambridge Antibody Technology | 100% |
Group Limited | |
Evinova Limited | 100% |
KuDOS Horsham Limited | 100% |
KuDOS Pharmaceuticals Limited | 100% |
Syntimmune Limited | 100% |
Zenco (No. 8) Limited | 100% |
Zeneca Finance (Netherlands) Company | 100% |
MedImmune Limited | 100% |
1 Francis Crick Avenue, | |
Cambridge Biomedical Campus, | |
Cambridge, CB2 0AA, United Kingdom | |
MedImmune U.K. Limited | 100% |
Plot 6, Renaissance Way, | |
Boulevard Industry Park, | |
Liverpool, L24 9JW, United Kingdom | |
United States | |
Acerta Pharma LLC 7 | 100% |
121 Oyster Point Boulevard, South San Francisco, | |
CA 94080, United States | |
Alexion Pharmaceuticals, Inc. | 100% |
Achillion Pharmaceuticals Inc. | 100% |
Alexion US1 LLC 7 | 100% |
Syntimmune LLC 7 | 100% |
TeneoTwo, Inc. | 100% |
121 Seaport Boulevard Boston, | |
MA 02210, United States | |
AlphaCore Pharma, LLC 7, 12 | 100% |
333 Parkland Plaza, Suite 5, Ann Arbor, | |
MI 48103, United States | |
Amolyt Pharma Inc. | 100% |
185 Alewife Brook Pkwy, Suite 210, | |
Cambridge, MA 02138, United States | |
Amylin Ohio LLC 7 | 100% |
Amylin Pharmaceuticals, LLC 7 | 100% |
Ardea Biosciences, Inc. | 100% |
AstraZeneca Collaboration Ventures, LLC 7 | 100% |
AstraZeneca Finance and Holdings Inc. | 100% |
AstraZeneca Finance LLC 7 | 100% |
AstraZeneca Pharmaceuticals LP 8 | 100% |
Atkemix Nine Inc. | 100% |
Atkemix Ten Inc. | 100% |
AZ Biotech Holdings, Inc. | 100% |
Cincor Pharma Inc. | 100% |
Corpus Christi Holdings Inc. | 100% |
LogicBio Therapeutics, Inc. | 100% |
Omthera Pharmaceuticals, Inc. | 100% |
Optein, Inc. | 100% |
Stauffer Management Company LLC 7 | 100% |
Zeneca Inc. | 100% |
Zeneca Holdings Inc. | 100% |
Zeneca Wilmington Inc. 6 | 100% |
1800 Concord Pike, Wilmington, | |
DE 19803, United States |
At 31 December 2025 | Group Interest |
AZ-Mont Insurance Company | 100% |
100 Bank Street, Suite 630, Burlington, | |
VT 05401, United States | |
Caelum Biosciences Inc. | 100% |
1200 Florence Columbus Road, Bordentown, | |
NJ 08505, United States | |
Evinova Inc. | 100% |
101 Orchard Ridge Drive, Gaithersburg, | |
MD 20878, United States | |
Fusion Pharmaceuticals US Inc. | 100% |
2 International Place, Suite 2310, Boston, | |
MA 02110, United States | |
Gracell Biopharmaceuticals, Inc. | 100% |
530 Lytton Avenue, 2nd Floor, Palo Alto, | |
CA 94301, United States | |
Icosavax, Inc. | 100% |
1930 Boren Avenue, Suite 1000, Seattle, | |
WA 98101, United States | |
MedImmune, LLC 7 | 100% |
MedImmune Ventures, Inc. | 100% |
One MedImmune Way, Gaithersburg, | |
MD 20878, United States | |
Modella AI, Inc. | 100% |
72, Winthrop Street, Charlestown, | |
MA 02129, United States | |
Pearl Therapeutics, Inc. | 100% |
200 Cardinal Way, Redwood City, | |
CA 94063, United States | |
Portola Pharmaceuticals LLC 7 | 100% |
ZS Pharma, Inc. | 100% |
1100 Park Place, Suite 300, San Mateo, | |
CA 94403, United States | |
Uruguay | |
AstraZeneca S.A. | 100% |
Yaguarón 1407 of 1205, 11.100, | |
Montevideo, Uruguay | |
Venezuela | |
AstraZeneca Venezuela S.A. | 100% |
Gotland Pharma S.A. | 100% |
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 | 100% |
18th Floor, A&B Tower, 76 Le Lai, | |
Ben Thanh Ward, District 1, | |
Ho Chi Minh City, Vietnam |
Strategic Report
Corporate Governance
Financial Statements
Sustainability Statement
Additional Information
Financial Statements
AstraZeneca
Annual Report & Form 20-F Information 2025
196
Group Subsidiaries and Holdings
continued
At 31 December 2025 | Group Interest |
Subsidiaries where the effective interest | |
is less than 100% | |
Algeria | |
AstraZeneca Algeria | 49% |
Pharmaceutical Industries SPA | |
N° 20, Micro Zone d’Activité Hydra, | |
Centre des Affaires Dar El Madina, Bloc A, | |
6th Floor, Hydra, Algiers, Algeria | |
India | |
AstraZeneca Pharma India Limited 4 | 75% |
Block N1, 12th Floor, Manyata Embassy | |
Business Park, Rachenahalli, Outer Ring Road, | |
Bangalore-560 045, India | |
United States | |
VaxNewMo, LLC 9, 10 | 19.66% |
4447 McPherson Avenue, St. Louis, | |
MO 63108, United States | |
Joint Ventures | |
Hong Kong | |
IHP HK Holdings Limited (in liquidation) | 50% |
Unit 1402, 14th Floor, Henley Building, | |
No. 5 Queen’s Road Central, Hong Kong | |
United States | |
Montrose Chemical Corporation of California | 50% |
Suite 380, 600 Ericksen Ave N/E, | |
Bainbridge Island, WA 98110, United States |
At 31 December 2025 | Group Interest |
Significant Holdings | |
China | |
Dizal (Jiangsu) Pharmaceutical Co., Ltd. | 23.71 % |
Room 404, 405, 416, Building C, | |
Huirong Business Plaza, 26 Hefeng Road, | |
Xinwu City, Jiangsu 214028, China | |
Wuxi AstraZeneca-CICC Venture Capital | 22.13 % |
Partnership (Limited Partnership) | |
Room 808, 8F, Building 99-2 Linghu Avenue, | |
Xinwu District, Wuxi, Jiangsu, China | |
United States | |
C.C. Global Chemicals Company | 37.50 % |
P.O. Box 7, MS2901, TX 76101-0007, | |
United States | |
Associated Holdings | |
Cayman Islands | |
Fuse Biosciences (Cayman) Limited 10 | 18.75 % |
Palm Grove Unit 4, 265 Smith Road, | |
George Town, P.O. Box 52A Edgewater Way, | |
#1653, Grand Cayman KY1-9006, | |
Cayman lslands | |
HBM Holdings Limited | 8.78 % |
P.O. Box 472, Harbour Place, 2nd Floor, | |
103 South Church Street, George Town, | |
Grand Cayman, KY1-1106, Cayman Islands | |
France | |
Medetia SAS 10 | 10% |
Institute Imagine, 24 Boulevard du | |
Montparnasse, 75015 Paris, France | |
Cellectis S.A. 1 | 43.85 % |
8, rue de la Croix Jarry, 75013 Paris, France | |
Israel | |
AION Labs Innovation Lab Ltd. | 19.23 % |
CombinAble.AI Ltd. 10 | 11.25 % |
ProPhet Bio Ltd. 10 | 11.70% |
Renasis Bio Ltd. 10 | 11.25 % |
TenAces Biosciences Ltd. 10 | 12.50 % |
4 Oppenheimer Street, Building B, | |
Rehovot, 7670104, Israel |
At 31 December 2025 | Group Interest |
Sweden | |
Swedish Orphan Biovitrum AB (publ) | 9.72 % |
Norra Stationsgatan 93A, Stockholm, Sweden | |
OnDosis AB | 19.80 % |
GoCo House, 5 tr, Gemenskapens gata 9, | |
431 53 Mölndal, Sweden | |
CCRM Nordic AB | 19.90% |
Förändringens Gata 10, | |
431 53 Mölndal, Sweden | |
Sferical AI Holding AB 11 | 20.00 % |
Arsenalsgatan 8C, Box 16066, | |
103 22 Stockholm, Sweden | |
United Kingdom | |
Niox Group plc | 15.82 % |
Magdalen Centre, 1 Robert Robinson Ave, | |
Science Park, Oxford, OX4 4GA, | |
United Kingdom | |
United States | |
AbMed Corporation 1 | 18.00 % |
68 Cummings Park Drive, Woburn, | |
MA 01801, United States | |
Amani Therapeutics, Inc. 10 | 15.00% |
251 Little Falls Drive, Wilmington, | |
DE 19808, United States | |
Pathos AI, Inc 10 | 11.26 % |
600 W Chicago Ave, 510 Chicago, | |
IL 60654, United States | |
Regio Biosciences, Inc. 10 | 19.54% |
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 preference shares.
2
Ownership held by way of capital contribution.
3
10% directly held by AstraZeneca PLC.
4
Accounting year end is 31 March.
5
Accounting year end is 30 June.
6
Directly held by AstraZeneca PLC.
7
Ownership held as membership interest.
8
Ownership held as partnership interest.
9
Consolidated due to Zeneca Inc. having an option to acquire.
10
Ownership held in preference shares.
11
7.14% voting rights and preference shares.
12
Strategic Report
Corporate Governance
Financial Statements
Sustainability Statement
Additional Information
Financial Statements | Company Statements
AstraZeneca
Annual Report & Form 20-F Information 2025
197
at 31 December
AstraZeneca PLC
2025
2024
Notes
$m
$m
Fixed assets
Fixed asset investments
1
60,446
62,019
60,446
62,019
Current assets
Debtors – other
6
8
Debtors – amounts owed by Group undertakings
6,659
5,807
Cash and cash equivalents
17
–
6,682
5,815
Creditors: Amounts falling due within one year
Other payables
2
(203)
(202)
Income tax payable
(36)
–
Interest-bearing loans and borrowings
3
(1,200)
(1,997)
(1,439)
(2,199)
Net current assets
5,243
3,616
Total assets less current liabilities
65,689
65,635
Creditors: Amounts falling due after more than one year
Interest-bearing loans and borrowings
3
(13,801)
(14,549)
Income tax payable
–
(36)
Other payables
2
(37)
(47)
(13,838)
(14,632)
Net assets
51,851
51,003
Capital and reserves
Called-up share capital
4
388
388
Share premium account
35,266
35,226
Capital redemption reserve
153
153
Other reserves
1,583
1,741
Profit and loss account
14,461
13,495
Shareholders’ funds
51,851
51,003
$m means millions of US dollars.
The Company’s profit for the year was $5,812m (2024: $457m).
The Company Financial Statements from pages 197 to 203 were approved by the Board and were signed on its behalf by
Pascal Soriot
Aradhana Sarin
Director
Director
10 February 2026
Company’s registered number 02723534
Strategic Report
Corporate Governance
Financial Statements
Sustainability Statement
Additional Information
Financial Statements
AstraZeneca
Annual Report & Form 20-F Information 2025
198
Company Statement of Changes in Equity
for the year ended 31 December
Share
Capital
Share
premium
redemption
Other
Profit and
Total
capital
account
reserve
reserves
1
loss account
2
equity
$m
$m
$m
$m
$m
$m
At 1 January 2024
388
35,188
153
1,779
17,640
55,148
Total comprehensive income for the period
Profit for the period
–
–
–
–
457
457
Total comprehensive income for the period
–
–
–
–
457
457
Transactions with owners, recorded directly in equity
Dividends
–
–
–
–
(4,602)
(4,602)
Capital reimbursements for share-based payments
–
–
–
(38)
–
(38)
Issue of Ordinary Shares
–
38
–
–
–
38
Total contributions by and distributions to owners
–
38
–
(38)
(4,602)
(4,602)
At 31 December 2024
388
35,226
153
1,741
13,495
51,003
Total comprehensive income for the period
Profit for the period
–
–
–
–
5,812
5,812
Total comprehensive income for the period
–
–
–
–
5,812
5,812
Transactions with owners, recorded directly in equity
Dividends
–
–
–
–
(4,846)
(4,846)
Capital reimbursements for share-based payments
–
–
–
(158)
–
(158)
Issue of Ordinary Shares
–
40
–
–
–
40
Total contributions by and distributions to owners
–
40
–
(158)
(4,846)
(4,964)
At 31 December 2025
388
35,266
153
1,583
14,461
51,851
1
The Other reserves arose from the cancellation of £1,255m share premium by the Company in 1993 and the redenomination of share capital of $157m in 1999. Included within Other reserves
at 31 December 2025 is a debit of $258m (31 December 2024: debit of $100m) in respect of cumulative share-based payment awards, which reduces the Company's ability to make
distributions out of its distributable reserves by an equivalent amount.
2
At 31 December 2025, all of the Profit and loss account reserve of $14,461m (31 December 2024: the overwhelming majority of $13,495m) was available for distribution, subject to filing
these Financial Statements with Companies House. When making a distribution to shareholders, the Directors determine profits available for distribution by reference to guidance on
realised and distributable profits under the Companies Act 2006 issued by the Institute of Chartered Accountants in England and Wales and the Institute of Chartered Accountants of
Scotland in April 2017. The profits of the Company have been received in the form of receivables due from subsidiaries. The availability of distributable reserves in the Company is
dependent on those receivables meeting the definition of qualifying consideration within the guidance, and in particular on the ability of subsidiaries to settle those receivables within
a reasonable period of time. The Directors consider that, based on the nature of these receivables and the available cash resources of the Group and other accessible sources of funds,
at 31 December 2025 all (31 December 2024: the overwhelming majority) of the Company’s profit and loss reserves were available for distribution.
Strategic Report
Corporate Governance
Financial Statements
Sustainability Statement
Additional Information
Financial Statements | Company Accounting Policies
AstraZeneca
Annual Report & Form 20-F Information 2025
199
Company Accounting Policies
Basis of presentation of
financial information
The Company is a public limited company,
limited by shares, incorporated and domiciled
in England & Wales. The registered address
is 1 Francis Crick Avenue, Cambridge
Biomedical Campus, Cambridge, CB2 0AA.
These financial statements were prepared
in accordance with FRS 101 ‘Reduced
Disclosure Framework’.
In preparing these financial statements,
the Company applied the recognition,
measurement and disclosure requirements
of International Financial Reporting Standards
as adopted by the UK (UK-adopted
International Accounting Standards), but
made amendments where necessary in
order to comply with the Companies Act
2006 and to take advantage of FRS 101
disclosure exemptions.
In these financial statements, the Company
has applied the exemptions available under
FRS 101 in respect of the following disclosures:
•
Statement of Cash Flows and related notes
•
disclosures in respect of transactions
with wholly owned subsidiaries
•
disclosures in respect of
capital management
•
the effects of new but not yet effective IFRSs
•
disclosures in respect of the compensation
of Key Management Personnel.
As the Group Financial Statements (presented
on pages 125 to 196) include the equivalent
disclosures, the Company has also taken
the exemptions under FRS 101 available in
respect of the following disclosures:
•
IFRS 2 ‘Share-based Payment’ in respect
of Group settled share-based payments
•
certain disclosures required by IFRS 13
‘Fair Value Measurement’ and the
disclosures required by IFRS 7 ‘Financial
Instruments: Disclosures’.
No individual profit and loss account is
prepared as provided by section 408 of
the Companies Act 2006.
Basis of accounting
The Company Financial Statements are
prepared under the historical cost convention
and on a going concern basis, in accordance
with the Companies Act 2006.
The following paragraphs describe the
main accounting policies, which have been
applied consistently.
Estimates and judgements
The preparation of the Company 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. There are no
key judgements or significant estimates.
Foreign currencies
Foreign currency transactions, being
transactions denominated in a currency other
than the Company’s functional currency, are
translated into US dollars at average rates
for the relevant monthly accounting periods,
which approximate to actual rates.
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.
Non-monetary items arising from foreign
currency transactions are not retranslated
in the Company’s accounting records.
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
Company’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
Company’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.
No deferred tax asset or liability is recognised
in respect of temporary differences
associated with investments in subsidiaries
and branches where the Company 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.
The Company’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.
The Company 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.
Liabilities for uncertain tax positions require
management to make judgements of potential
exposures in relation to tax audit issues
based upon interpretation of applicable laws
and regulations and the expectation of how
the tax authority will resolve the matter. Tax
benefits are recognised when it is probable
the tax positions will be accepted by the tax
authorities. When a position is not considered
probable of being accepted, management
reviews each material tax benefit and reflects
the effect of the uncertainty in determining
the related taxable result. This is 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.
Strategic Report
Corporate Governance
Financial Statements
Sustainability Statement
Additional Information
Company Accounting Policies
continued
Financial Statements
AstraZeneca
Annual Report & Form 20-F Information 2025
200
Investments
Fixed asset investments, including investments
in subsidiaries, are stated at cost and reviewed
for impairment if there are indications that
the carrying value may not be recoverable.
Debtors
Amounts owed by Group undertakings are
recognised initially at fair value. Subsequent
to initial recognition they are measured at
amortised cost using the effective interest
method, less any impairment losses.
The recoverability of these balances has
been assessed in accordance with IFRS 9
‘Financial Instruments’ and no impairment has
been identified. The amounts owed by Group
undertakings are considered to have low
credit risk, due to timely payment of interest
and settlement of principal amounts on
agreed due dates, limiting the loss allowance
to 12-month expected credit losses.
Amounts owed by Group undertakings are
written off where there is no reasonable
expectation of recovery. Impairment losses
are presented as net impairment losses
within Operating profit, any subsequent
recoveries are credited against the same line.
Other payables
Liabilities included in Other payables are
recognised initially at fair value. Subsequent
to initial recognition they are remeasured at
either amortised cost using the effective
interest method or at fair value using an
expected credit loss model.
Financial instruments
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 profit.
Share-based payments
The issuance by the Company to employees
of its subsidiaries of a grant of awards over
the Company’s shares, represents additional
capital contributions by the Company to its
subsidiaries (or capital reimbursement from
those subsidiaries). An additional investment/
divestment in subsidiaries results in a
corresponding increase/decrease in
shareholders’ equity. The additional capital
contribution/reimbursement is based on the
fair value of the grant issued, allocated over
the underlying grant’s vesting period, less the
market cost of shares charged to subsidiaries
in settlement of such share awards.
Litigation
Through the normal course of business,
the AstraZeneca Group is involved in legal
disputes, the settlement of which may
involve cost to the Company. A provision is
made where an adverse outcome is probable
and associated costs, including related legal
costs, can be estimated reliably. In other
cases, appropriate disclosures are included.
Strategic Report
Corporate Governance
Financial Statements
Sustainability Statement
Additional Information
Financial Statements | Notes to the Company Financial Statements
AstraZeneca
Annual Report & Form 20-F Information 2025
201
Notes to the Company Financial Statements
1 Fixed asset investments
Investments in subsidiaries
Shares
Loans
Total
$m
$m
$m
At 1 January 2024
49,059
15,130
64,189
Additions during the year
33,745
–
33,745
Disposals during the year
(33,745)
–
(33,745)
Transfer to Debtors – amounts owed by Group undertakings
–
(1,997)
(1,997)
Capital reimbursement
(54)
–
(54)
Exchange
–
(156)
(156)
Amortisation
–
11
11
Other movements
26
–
26
At 31 December 2024
49,031
12,988
62,019
Return of capital from subsidiaries
(500)
–
(500)
Transfer to Debtors – amounts owed by Group undertakings
–
(1,199)
(1,199)
Capital reimbursement
(207)
–
(207)
Exchange
–
335
335
Amortisation
–
8
8
Other movements
(10)
–
(10)
At 31 December 2025
48,314
12,132
60,446
Loans to subsidiaries consists of bonds which are issued externally and are issued back to Group undertakings with comparable terms on interest
rates and are repayable on maturity, details of which are disclosed in Note 3. The recoverability of these inter-company loans has been assessed
in accordance with IFRS 9 ‘Financial Instruments’ with no impairment identified. The inter-company balances are considered to have low credit
risk due to timely payment of interest and settlement of principal amount on agreed due dates, limiting the loss allowance to 12-month expected
credit losses. In 2025, there have been no credit losses (2024: $nil).
Return of capital from subsidiaries relates to an income dividend received, which has been accounted for as return of capital due to a potential
future simplification of the organisational structure.
The other movements comprise a reduction of $10m representing revaluation of carrying value of guarantees provided by the Company to its
subsidiary as explained in Notes 2 and 3.
2 Other payables
2025
2024
$m
$m
Amounts falling due within one year
Other creditors
200
199
Deferred income
3
3
203
202
Amounts falling due after more than one year
Other creditors
37
47
Other creditors due after more than one year comprise an amount representing the carrying value of the guarantees provided by the Company
to its subsidiary for the bonds issued externally as explained in Note 3. As at 31 December 2025, the carrying value of the guarantees was $37m
(2024: $47m).
Strategic Report
Corporate Governance
Financial Statements
Sustainability Statement
Additional Information
Notes to the Company Financial Statements
continued
Financial Statements
AstraZeneca
Annual Report & Form 20-F Information 2025
202
3 Loans and borrowings
Repayment
2025
2024
dates
$m
$m
Amounts due within one year
Interest-bearing loans and borrowings (unsecured)
3.375% Callable bond
US dollars
2025
–
1,997
0.7% Callable bond
US dollars
2026
1,200
–
Total amounts due within one year
1,200
1,997
Amounts due after more than one year
Interest-bearing loans and borrowings (unsecured)
0.7% Callable bond
US dollars
2026
–
1,198
3.625% Callable bond
euros
2027
880
780
3.125% Callable bond
US dollars
2027
749
748
1.25% Callable bond
euros
2028
936
829
4% Callable bond
US dollars
2029
997
996
0.375% Callable bond
euros
2029
936
829
1.375% Callable bond
US dollars
2030
1,295
1,295
5.75% Non-callable bond
pounds sterling
2031
469
438
3.75% Callable bond
euros
2032
878
778
6.45% Callable bond
US dollars
2037
2,728
2,727
4% Callable bond
US dollars
2042
989
989
4.375% Callable bond
US dollars
2045
982
982
4.375% Callable bond
US dollars
2048
738
738
2.125% Callable bond
US dollars
2050
488
487
3% Callable bond
US dollars
2051
736
735
Total amounts due after more than one year
13,801
14,549
Total loans and borrowings
15,001
16,546
2025
2024
$m
$m
Loans and borrowings are repayable:
After five years from balance sheet date
8,008
9,169
From two to five years
4,164
4,182
From one to two years
1,629
1,198
Within one year
1,200
1,997
Total unsecured
15,001
16,546
All borrowings are issued with fixed interest rates.
In addition, the Company acts as guarantor for bonds issued by its wholly-owned subsidiary, AstraZeneca Finance LLC. AstraZeneca Finance LLC
is the issuer of $1,250m 1.200% Notes due 2026, $1,250m 4.800% Notes due 2027, $1,100m 4.875% Notes due 2028, $1,250m 1.750% Notes
due 2028, $1,250m 4.850% Notes due 2029, $650m 4.900% Notes due 2030, €650m 3.121% Notes due 2030, $1,000m 4.900% Notes due
2031, $750m 2.250% Notes due 2031, $500m 4.875% Notes due 2033, €750m 3.278% Notes due 2033 and $1,500m 5.000% Notes due 2034
(the ‘AstraZeneca Finance Notes’). Each series of AstraZeneca Finance Notes has been fully and unconditionally guaranteed by the Company.
Each of the guarantees by AstraZeneca PLC is full and unconditional and joint and several.
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.
4 Called-up share capital
Details of share capital movements in the year are included in Note 24 to the Group Financial Statements.
Strategic Report
Corporate Governance
Financial Statements
Sustainability Statement
Additional Information
Financial Statements | Notes to the Company Financial Statements
AstraZeneca
Annual Report & Form 20-F Information 2025
203
5 Contingent liabilities
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 case was subsequently transferred to the US District Court for the Southern District of New York.
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 licence agreement
relating to
Lynparza
.
•
Trial has been scheduled to begin in June 2026.
6 Statutory and other information
The Directors of the Company were paid by another Group company in 2025 and 2024.
7 Subsequent events
Sustainability
Statement
Contents
General disclosures
205
Topical disclosures
211
Environmental disclosures
211
Social disclosures
217
Governance disclosures
219
Independent Sustainability
Assurance Report
220
Corporate Governance
Sustainability Statement
Additional Information
Financial Statements
Strategic Report
204
AstraZeneca
Annual Report & Form 20-F Information 2025
Sustainability Statement
Basis for preparation
UK statutory sustainability reporting
Non-Financial and Sustainability
Information Statement and the Task Force
on Climate-related Financial Disclosures
(TCFD) recommended disclosures
The areas listed below include references
to our relevant policies, due diligence
processes and information on how we
are performing against various measures.
Information on the key non-financial
performance indicators relevant to our
business is presented alongside the
material sustainability matters.
•
Business model, pages 8 and 9
•
Environmental matters, pages 42 to 45,
and 211 to 214
•
Climate-related disclosures, pages 42
to 44, and 211 to 214
•
Employees, pages 39, 217 and 218
•
Social matters, pages 30, 31, 39, 41, 217
and 218
•
Human rights, pages 39, 206, 207 and 217
•
Anti-corruption and anti-bribery
matters, pages 34 and 219
•
Principal Risks, pages 48 to 49.
We have made disclosures within the
Annual Report consistent with the four
recommendations of the TCFD, the 11
recommended disclosures and all sector
guidance, and in compliance with the
requirements of UK Listing Rule 6.6.6(8)
of the UK Financial Conduct Authority.
The table on page 208 sets out the required
climate-related disclosures from ESRS E1
Climate Change, the TCFD framework and
UK Companies Act 2006, section 414CB,
and shows where further information
can be found.
Sustainability reporting in accordance
with European Sustainability Reporting
Standards (ESRS)
The Group’s sustainability disclosures
have been prepared on a consolidated basis.
The scope of consolidation is consistent with
the scope of the Consolidated Financial
Statements. For the Group’s accounting
policies, Basis of accounting and preparation
of financial information, see page 129.
The Group’s sustainability disclosures
address material impacts, risks and
opportunities (IROs) across its value chain,
including the Group’s own operations.
The Group’s sustainability disclosures have
been prepared in accordance with the ESRS
as required by the Swedish Annual Accounts
Act Sections 12-12f. Data points in the ESRS
are disclosed to the extent information
is material.
The time horizons used for the Group’s
sustainability disclosures are: short term as
up to one year, medium term as one to three
years and long term as more than three
years. This is consistent with the Group’s
financial planning and risk management.
Metrics, including when upstream and
downstream value chain data is included,
are described in the individual metric
methodologies. Metrics which have a high
level of measurement uncertainty are:
•
Scope 3 GHG emissions estimate based
on expenses – see page 213
•
Average level of patient adherence
assumption used in number of patients
treated estimate – see page 218.
Any forward-looking information included
in this Statement, including assumptions
and conclusions of the double materiality
assessment, is subject to the Cautionary
statement regarding forward-looking
statements on page 228.
Incorporation by reference
For ESRS disclosures incorporated by
reference to other sections of the Annual
Report, see the table Cross-references
to other parts of the Annual Report on
pages 208 to 210.
Use of phase-in provisions in accordance
with Appendix C of ESRS 1
We have used the phase-in provisions as
described in the Delegated Regulation (EU)
2025/1416 for disclosures relating to E4
Biodiversity and ecosystems, and S4
Consumers and end-users. We have also
opted to use the phase-in provisions listed in
ESRS 1 Appendix C applicable to AstraZeneca.
Governance
Statement on due diligence
At AstraZeneca, sustainability due diligence
is embedded across our Code of Ethics and
supporting standard and core business
processes, ensuring that sustainability IROs
are identified, assessed, and addressed
throughout decision making and execution.
Sustainability matters are considered as part
of the Group’s Enterprise Risk Management
process and in the due diligence processes
of larger acquisitions.
Risk management and internal controls
over sustainability reporting
We have continued our work this year
to design and implement a robust controls
framework which aims to ensure that risks
to accurate sustainability reporting are
appropriately mitigated. Our approach
is to align controls to key aspects of the
sustainability reporting process, including
the scope of reporting, data collection and
review, and the preparation and review of
sustainability disclosures contained in the
Annual Report.
We continue to evaluate our processes and
adapt the control environment where needed.
To ensure that the control environment
remains appropriate, we assess where
sustainability reporting could be misstated
based on the materiality of disclosures, the
complexity of processes, the nature of the
data being collected and the probability
of errors, omissions or fraud, and adjust
the control environment where required.
Our governance mechanisms for sustainability
reporting are similar to the existing governance
over financial reporting and cover our
continued process to implement and monitor
controls. Any findings are reported to the
Audit Committee.
Core elements of environmental and social due diligence
*
Due diligence element
Page references
a
Embedding due diligence in governance, strategy and business model
Pages 206 to 207, 208 to 210 (GOV-2, GOV-3, SBM-3)
b
Engaging with affected stakeholders
Pages 206 to 207, 208 to 210 (GOV-2, SBM-2, S1-2, S1-3, BP-2 Patient
safety and product quality), 211
c
Identifying and assessing negative impacts on people
and the environment
Pages 206 to 207, 208 to 210 (SBM-3, G1-1)
d
Taking action to address negative impact
Pages 208 to 210 (E2-2, S1-4, E1-3, MDR-A, BP-2 17d)
e
Tracking effectiveness of these efforts
Pages 208 to 210 (MDR-M, MDR-T, BP-2 17b and 17e, G1-4, E1-6, E1-4),
211 to 213, 217 to 218, 219
*
Data points derived from other EU legislation: SFDR.
205
AstraZeneca
Annual Report & Form 20-F Information 2025
Corporate Governance
Sustainability Statement
Additional Information
Financial Statements
Strategic Report
Sustainability Statement
General disclosures
Raw materials and supply chain
Sourcing and supplying raw materials
and manufacturing medicinal products
AstraZeneca's own operations
R&D, manufacturing and marketing
of our medicines
Downstream distribution
Distribution of our medicines to patients
Patients
Use of our medicines by patients
Disposal
Disposal of waste products and packaging
by AstraZeneca and patients
Summarised IRO
Type
of IRO
Time
horizon
Applicable ESRS
Viability
scenario
Further details on the IRO can
be found in the Business Review
Raw materials
and supply
chain
Own
operations
Distribution
Patients
Disposal
Financial and reputational risks
due to climate credentials
E1 Climate change
4
Transition plan for climate
change, page 42.
Potential impacts on patients
due to climate disasters
Climate change adaptation,
page 44.
Patient discharge of
persistent pharmaceuticals
E2 Pollution
Pharmaceuticals in the
environment, page 45.
Regulatory risks due
to PFAS restrictions
PFAS restrictions, page 45.
Opportunities from the creation
of new medicines
S4 Consumers and
end-users and S1
Own workforce
3
Sustainable innovation, page 30,
and Developing skills and
capabilities, page 39.
Financial and compliance risks
related to ethical violations
G1 Business
conduct and S1
Own workforce
Developing skills and capabilities,
page 39, and Business conduct,
pages 34 and 35.
Financial risk due to
irresponsible marketing
Cybersecurity incidents
affecting product delivery
and patients’ health
G1 Business
conduct
Cybersecurity and data privacy,
page 36.
Financial and reputational
risks related to disruption to
IT systems, including
cybersecurity breaches
G1 Business
conduct and S1
Own workforce
5
Cybersecurity and data privacy,
page 36, and Developing skills
and capabilities, page 39.
Reputational risks related
to data privacy and data
management
Potential data privacy
incidents affecting
stakeholders’ privacy rights
G1 Business
conduct
Cybersecurity and data privacy,
page 36.
Key:
Risk
Transitional risk
Potential negative impact
Opportunity
Short: up to one year
Medium: one to three years
Long: more than three years
Additional material IROs were also identified across the ESRS in scope of Delegated Regulation (EU) 2025/1416. The interaction between
the material topics, our strategy and business model are outlined in the topical disclosures, see page references in the table on page 207.
Material impacts, risks and opportunities
Location in the value chain
For more information on the
Viability Statement, see
page 46.
Impact, risk and opportunity
management
In 2024, we performed a double materiality
assessment in compliance with the ESRS.
The assessment considered both the Group’s
impacts on people and the environment
as well as sustainability-related risks and
opportunities to the Group’s prospects.
We have identified and assessed IROs
consistent with our functional activities
which take place (and are managed)
globally on a highly integrated basis.
The Group’s impacts on people and the
environment were identified through
research using sources such as sector
guidance and benchmarking, as well
as understanding the interests and views
of stakeholders through dialogue. The
identification of water and pollution-related
impacts was informed by the geography
of the Group’s sites, suppliers and our
commercial footprint.
Findings from our due diligence processes
were used to inform scoring of negative and
positive IROs. Our due diligence processes
include monitoring the compliance of our
suppliers with our Code of Conduct for
Third Parties, through our third-party risk
management (3PRM) system. Before and
after we contract with third parties, we assess
whether their reputation and actions align
with our expectations and address concerns.
206
AstraZeneca
Annual Report & Form 20-F Information 2025
Corporate Governance
Sustainability Statement
Additional Information
Financial Statements
Strategic Report
Sustainability Statement
General disclosures
continued
Once contracted, we undertake supplier
site audits of selected suppliers, using the
Pharmaceutical Supply Chain Initiative
(PSCI) Audit processes and documentation.
Collectively, these processes assess topics
such as human and labour rights, safety,
health and environment, anti-bribery and
anti-corruption, data privacy and IT security,
suppliers’ management systems,
employment principles, as well as risk
management processes. We also conduct
biannual human rights labour reviews in
all countries where we have employees,
focused on the International Labour
Organization’s core themes.
The results of due diligence findings, as
well as internal assessments and research,
inform the double materiality assessment.
Negative and positive impacts were initially
scored using results of due diligence
findings, internal assessments and research.
Subsequently, findings were confirmed by
internal and external stakeholders. External
stakeholders represented patient groups,
suppliers, investors, academia and non-
governmental organisations. Their input was
used to refine and validate the assessments
and scores, in line with defined scoring criteria.
The identification and assessment of
sustainability-related risks and opportunities
was carried out based on prevailing
exposures, taking account of mitigations
in place at the reporting date. This approach
is aligned to the Group’s risk management
framework (see our Risk Overview from
page 47).
The double materiality assessment utilised
quantitative and qualitative thresholds,
aligned with the Group’s risk appetite, to
determine material IROs. The assessment
was then reviewed by representatives of
the SET and the Board.
In 2025, we updated our double materiality
assessment utilising the same methodology
as in 2024. This resulted in Use and sourcing
of raw materials being determined to be
material. People is a material topic based
on the dependency on our people to deliver
on our Ambition 2030 and uphold the
Company’s values. However, Talent
attraction and retention was not determined
to be a material topic in 2025.
Material impacts, risks and opportunities
The material IROs identified in the double
materiality assessment are presented
on page 40. These material IROs are
integrated into our business strategy and
processes, see the topical disclosures.
The Board assesses the Group’s resilience
through a viability assessment, see the
Viability Statement on page 46. Our viability
scenarios have been formulated taking
sustainability risks into consideration
where appropriate.
For information on the impact of material
sustainability topics on the Group’s financial
statements, see the Group Accounting
Policies in the Financial Statements from
page 129.
Materiality of metrics in the
Sustainability Statement
Metrics related to the IROs are included
if they are used to track effectiveness of our
progress internally and they are complete
to the extent of the material impact, risk or
opportunity for the Group. These principles
apply to both metrics that derive from the
ESRS and for entity-specific metrics. Data
points derived from other EU legislation and
environmental metrics under an operational
control boundary, where not material, have
not been disclosed.
List of ESRS Disclosure Requirements complied with
ESRS 2 – General disclosures
Page
BP-1 – Basis for preparation
205
BP-2 – Specific circumstances
205, 208-210,
213, 218
GOV-1 – Governance roles
208-210
GOV-2 – Governance
205, 208-210
GOV-3 – Incentive schemes
208-210
GOV-4 – Due diligence
205
GOV-5 – Risk management
205
SBM-1 – Strategy, business model
and value chain
208-210
SBM-2 – Stakeholders
206-207,
208-210
SBM-3 – Interaction of material IROs
with strategy
206, 208-210
IRO-1 – Processes
206-207
IRO-2 – ESRS Disclosure
Requirements (DR) covered
205, 207-208
S1 – Own workforce (People)
Page
S1-1, MDR-P – Policies
206-207,
208-210, 217
S1-2 – Engaging own workforce
208-210
S1-3 – Channels to raise concerns
208-210
S1-4, MDR-A – Actions
208-210
MDR-M – Metrics
208-210, 218
MDR-T – Targets
211
G1 – Business conduct
Page
G1.GOV-1 – Role of supervisory
bodies
208-210
G1-1, MDR-P – Policies
208-210, 219
G1-3 – Procedures
208-210, 219
MDR-A – Actions
208-210
G1-4, MDR-M – Metrics
208-210
MDR-T – Targets
211
E2 – Pollution (Nature)
Page
MDR-P – Policies
211
E2.IRO-1 – Processes
206-207
E2-2, MDR-A – Actions
208-210
MDR-T – Targets
211
E4 – Biodiversity and ecosystems
(Nature)
Page
ESRS 2 17 a, c-d
206, 208-210,
211
S4 – Consumers and end-users
(Sustainable Innovation)
Page
ESRS 2 17 a-e
206, 208-210,
217-218
S4 – Consumers and end-users
(Patient safety and product
quality)
Page
ESRS 2 17 a, c-e
206, 208-210,
217-218
S4 – Consumers and end-users
(Accessible and affordable
healthcare)
Page
ESRS 2 17 a-e
206, 208-210,
217-218
G1 – Business conduct
(Cybersecurity and data privacy)
Page
MDR-P – Policies
219
MDR-A – Actions
208-210
MDR-M – Metrics
208-210, 219
MDR-T – Targets
211
207
AstraZeneca
Annual Report & Form 20-F Information 2025
Corporate Governance
Sustainability Statement
Additional Information
Financial Statements
Strategic Report
Sustainability Statement
E1 – Climate change
TCFD
Companies Act
Disclosure Requirements
Page
E1.GOV-3: Incentive schemes
Governance: The Board’s oversight of climate-related
risks and opportunities, and management's role in
assessing and managing climate-related risks and
opportunities
Governance arrangements for climate-related risks
and opportunities
42, 82, 83,
85, 86,
208-210
E1-1: Transition plan
E1.SBM-3: Material IROs
Strategy: Climate-related risks and opportunities
identified over short, medium and long term
Principal climate-related risks and opportunities
46, 47, 206,
208-210,
214
Strategy: Impact of climate-related risks and
opportunities on the company's businesses,
strategy and financial planning
Impacts of the principal climate-related risks and
opportunities on the business model and strategy
Strategy: Resilience of the organisation’s strategy
Resilience of the company’s business model
and strategy
E1.IRO-1: Processes
E1-2: Policies
MDR-P: Policies
E1-3: Actions
MDR-A: Actions
Risk Management: Processes for identifying
and assessing climate-related risks
Identification and assessment of climate-related
risks and opportunities
46, 47, 205,
206-207,
208-210,
211
Risk Management: Processes for managing
climate-related risks
Management of climate-related risks and
opportunities
Risk Management: How processes for identifying,
assessing and managing climate-related risks are
integrated into overall risk management
Integration into the company’s overall risk
management process
E1-6: Scopes 1, 2 and 3
MDR-M: Metrics
Metrics and Targets: Metrics to assess climate-related
risks and opportunities
Key performance indicators used to assess
progress against targets and calculations behind the
key performance indicators
208-210,
212-213
Metrics and Targets: Scope 1, Scope 2 and Scope 3
GHG emissions, and the related risks
E1-4: Targets
MDR-T: Targets
Metrics and Targets: Targets used by the organisation
to manage climate-related risks and opportunities
Targets used by the company
208-210,
211
In the double materiality assessment, we did not identify any material IROs related to ESRS E3, E5, S2 and S3. As such, these standards are
not referenced in this Sustainability Statement.
Cross-references to other parts of the Annual Report
ESRS
DR
Paragraph
Cross-reference
General disclosures
ESRS 2
GOV-1
21a, 21c, 21d
1
, 21e
1
People: Inclusion and diversity, page 39. Board of Directors as at 10 February 2026, pages 68
and 69, Senior Executive Team (SET) as at 10 February 2026, page 70, Compliance with the
UK Corporate Governance Code: G. Board composition, independence and division of
responsibilities, page 71. Nomination and Governance Committee Report: Non-Executive
Directors’ experience, page 79, and Table 1 and Table 2, page 80.
21b
Global reach and presence – Employees by reporting region, page 27.
22a
Corporate Governance Overview, page 67.
22b
Sustainability Committee Report: The full role of the Sustainability Committee is set out in its
terms of reference, page 82.
22c
Sustainability Committee Report: Chair’s introduction, page 82.
22c(i), 22c(ii), 22d
Sustainability Committee Report: Chair’s introduction and Activities during the year, page 82.
22b
Audit Committee Report: The full role of the Audit Committee is set out in its terms of reference,
page 84.
22c
Audit Committee Report: Chair's introduction, page 83, and Committee overview – Role of
the Committee, page 84.
22c(i), 22c(ii)
Audit Committee Report: Committee overview – Role of the Committee, page 84.
22c(iii)
Compliance with the UK Corporate Governance Code: 4. Audit, risk and internal control, page 73.
22b
Directors' Remuneration Committee: The role of the Remuneration Committee is set out in
its terms of reference, page 90.
22c
Compliance with the UK Corporate Governance Code: 5. Remuneration, page 73.
22c(i), 22c(ii)
Directors' Remuneration Report: Key Committee activities in 2025, page 93.
22c(iii)
Directors’ Remuneration Report: Key Committee activities in 2025, page 93, and How the
Remuneration Committee ensures targets are stretching, page 96.
22d
Directors’ Remuneration Report: How the Remuneration Committee ensures targets
are stretching, page 96.
23
Nomination and Governance Committee Report: Committee's role, page 79.
1
Data points derived from other EU legislation: SFDR, Benchmark Regulation.
208
AstraZeneca
Annual Report & Form 20-F Information 2025
Corporate Governance
Sustainability Statement
Additional Information
Financial Statements
Strategic Report
Sustainability Statement
General disclosures
continued
ESRS
DR
Paragraph
Cross-reference
General disclosures
ESRS 2
GOV-1
23a, 23b
Board performance evaluation: 2025 overview, page 78, Board of Directors as at 10 February 2026,
pages 68 and 69, SET as at 10 February 2026, page 70, Sustainability Committee Report:
Chair's introduction, page 82.
GOV-2
26a, 26b, 26c
Sustainability Committee Report: Activities during the year, page 82.
26a
Audit Committee Report: Risk identification and management, page 84, Internal Audit, page 85,
and Engagement with employees and other stakeholders, page 85.
26b
Compliance with the UK Corporate Governance Code: 4. Audit, risk and internal control, page 73,
Sustainability Committee Report: Chair's introduction, page 82.
26c
Audit Committee Report: Chair's introduction, page 83, Cybersecurity risk, digital security and
information governance, page 84, and Sustainability reporting, page 85.
GOV-3
29, 29a, 29b, 29c
Directors' Remuneration Report: How our performance measures for 2026 support the delivery
of our strategy, page 95.
29c, 29d
Directors' Remuneration Report: Annual bonus, pages 98 to 102, and long-term incentives,
pages 102 to 105.
29e
Directors' Remuneration Report: Key Committee activities in 2025, page 93, and How the
Remuneration Committee ensures targets are stretching, page 96.
SBM-1
40a(i), 40a(ii)
Therapy Area Review: 2025 overview, pages 13, 17 and 23.
40a(iii)
Global reach and presence, page 27.
40e, 40f, 40g
Our Strategy and Key Performance Indicators, pages 10 and 11, Therapy Area Review: 2025
overview, pages 13, 17 and 23.
42, 42a, 42b, 42c
Our Purpose, Values and Business Model, pages 8 and 9.
SBM-2
45a, 45a(i), 45a(ii), 45a(iii),
45a(iv), 45a(v)
Connecting with our stakeholders, pages 74 to 76.
45d
How the Board engages with stakeholders, page 76.
SBM-3
48b, 48c(i), 48c(ii), 48c(iv)
Business conduct: AZ Ethics, Anti-bribery and anti-corruption, and Responsible sales and
marketing, pages 34 and 35, Cybersecurity and data privacy, page 36, People: Enabling an agile
organisation, and Developing skills and capabilities, page 39, Climate change, pages 42 to 44,
Nature, page 45.
48d
Group Accounting Policies, page 129.
48f
Viability Statement, page 46.
Climate change
E1
E1-1
14, 16a, 16d
Climate change: Transition plan for climate change, page 42.
16b
Climate change: Scope 1 and 2 decarbonisation levers, page 42, and Scope 3 decarbonisation
levers, page 43.
16h, 16i
Climate change: Governance, page 42.
16j
Climate change: Climate performance, page 43, Scope 1 and 2 decarbonisation levers, page 42,
and Scope 3 decarbonisation levers, page 43.
E1-2
25
Climate change: Governance, page 42 and Climate change adaptation, page 44.
E1-3
29a, 29b
Climate change: Climate performance, page 43, Scope 1 and 2 decarbonisation levers, page 42,
Scope 3 decarbonisation levers, page 43.
E1-4
34e, 16a
Climate change: Transition plan for climate change, page 42.
34a, 34b
Climate change: Climate performance, page 43.
E1-6
48a, 49a, 49b, 50a, 51, 52a,
52b, AR 45d
AR 46g
Climate change: Highlighted sustainability metrics, page 42.
ESRS 2
MDR-A
68a, 68b, 68c
Climate change: Scope 1 and 2 decarbonisation levers, page 42, Scope 3 decarbonisation levers,
page 43, and Climate change adaptation, page 44.
MDR-T
80f, 80g
Climate change: Transition plan for climate change, page 42.
80d, 80j
Climate change: Climate performance, page 43.
MDR-M
75
Climate change: Highlighted sustainability metrics, page 42.
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Sustainability Statement
ESRS
DR
Paragraph
Cross-reference
E1
E1.GOV-3
13
Directors’ Remuneration Report: How our performance measures for 2026 support the delivery
of our strategy, page 95, and Long-term incentives, pages 102 to 105.
E1.SBM-3
19a, 19b, 19c, AR 7b, AR 8b
Viability Statement, page 46.
E1.IRO-1
20a, AR 9, 20b, 20c, 21, AR:
11a, 11c, 11d, 12a, 12b, 12c, 12d,
13, 14
Climate change: Climate change adaptation, page 44.
Nature
E2
E2-2
AR 13
Nature: Pharmaceuticals in the environment, and PFAS restrictions, page 45.
ESRS 2
MDR-A
68a, 68b, 68c
BP-2
17a, 17d
Nature: Use and sourcing of raw materials, page 45.
People
S1
S1-1
21
People: Human Resources Standards, page 39.
S1-1
20b
People: Listening to our workforce, page 39, Engaging with our workforce, page 78.
S1-2
27, 27a, 27b, 27c, 27e, 28
S1-2
27, 27a, 27b, 27e
Business conduct: AZ Ethics, page 34.
S1-3
32b, 32c, 32d, 32e, 33
S1-4
38a, 38c, 38d, 40a, 40b
People: Developing skills and capabilities, page 39, Sustainable innovation, page 30,
Cybersecurity and data privacy, page 36.
ESRS 2
MDR-A
68a, 68b, 68c
MDR-M
75
People: Highlighted sustainability metrics, page 39.
Accessible and affordable healthcare
ESRS 2
BP-2
17a, 17b, 17c, 17d, 17e
Accessible and affordable healthcare, page 41.
Patient safety and product quality
ESRS 2
BP-2
17a, 17c, 17d, 17e
Patient safety and product quality, page 31.
Sustainable innovation
ESRS 2
BP-2
17a, 17c, 17d, 17e
Science and Innovation: Our performance in 2025, page 28, Sustainable innovation, page 30,
Therapy Area Review: 2025 overview, pages 13, 17 and 23.
Business conduct
G1
G1-1
9, 10a, 10c, 10c(i), 10c(ii), 10e
Business conduct: AZ Ethics, page 34.
10g, 10h
Business conduct: Anti-bribery and anti-corruption, page 34.
G1-3
18a, 18b, 18c
Business conduct: AZ Ethics, page 34.
18c
Further information on risk management and controls – Global Compliance and GIA, page 73.
21a, 21b, 21c
Business conduct: Anti-bribery and anti-corruption, page 34.
ESRS 2
MDR-A
68a, 68b, 68c
Business conduct: Anti-bribery and anti-corruption, page 34, Responsible sales and marketing,
page 34.
ESRS 2
MDR-M
75
Note 30: Commercial litigation, pages 185 to 187, and Government investigations and
proceedings, page 188.
G1
G1-4
24a
24b
Business conduct: Anti-bribery and anti-corruption, page 34.
G1.GOV-1
5a
Corporate Governance Overview, page 67.
5b
Board of Directors as at 10 February 2026, pages 68 and 69, SET as at 10 February 2026, page 70.
Cybersecurity and data privacy
ESRS 2
MDR-A
68a, 68b, 68c
Cybersecurity and data privacy, page 36.
MDR-M
75
Cybersecurity and data privacy: Highlighted sustainability metrics, page 36.
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Sustainability Statement
Additional Information
Financial Statements
Strategic Report
Sustainability Statement
General disclosures
continued
Environmental policies
Key contents
Scope
Accountability
Material topics
Global Safety, Health and Environment (SHE) Standards and OneSHE Framework of internal standards, procedures and guidelines
Our SHE management system ensures the environmental
risks of our activities are assessed, operational controls are
in place, checks are completed through a risk-based audit
programme guided by an independent organisation and
there is an annual management review process.
Applies to all employees, temporary
staff and contractors across
AstraZeneca sites.
VP, Global Sustainability
and SHE
Climate change
and nature
Business Continuity Standard
Sets out our principles for consistent business continuity
process and governance, in order to support effective and
sustainable business resilience across AstraZeneca.
Each SET area/enabling function
must have an effective business
continuity arrangement in place
coordinated by a Business
Continuity Champion.
CFO/Chief Risk Officer
Climate change
Environmental targets
Target and relations to policy
Year
Notes
Climate change
*
By 2026, reduce absolute Scope 1 and 2
GHG emissions by 98%.
2026
Category 9 is excluded from the target boundary for 2030 target. Categories 10 and 14 assessed
as not relevant. Category 15 assessed as not material. Reductions are unlikely to be linear.
Baseline year: 2015
The baseline years are representative of normal operating conditions and the difference
in baseline years between emission scopes is due to the availability of data.
Recalculations to baseline GHG data occurs to ensure that real changes to emissions are
captured rather than a result of AstraZeneca structural (acquisitions, divestments, mergers)
or methodology changes (error correction or calculation adjustments). This enables
consistency to be maintained over time. Recalculation will be considered dependent
upon significance to GHG emissions with updates disclosed. An internal procedure
sets out the thresholds and process for recalculation and that adjustments are logged
and communicated to our assurance providers as part of annual reporting.
An acquisition that has a material impact on our emissions is an example of a future
development that could trigger a review of sustainability targets and base year data.
By 2030, reduce absolute Scope 3 GHG
emissions by 50%. By 2045, reduce
absolute Scope 3 GHG emissions by
90% and reach net-zero.
Baseline year: 2019
2030 & 2045
*
Data points derived from other EU legislation: SFDR, Pillar 3, Benchmark Regulation.
On the following pages we present our key
policies, targets and metrics relating to our
material IROs.
Policies
AstraZeneca’s approach to our material
sustainability topics is guided by a framework
of policies and standards, anchored by our
Code of Ethics. Following the Code of Ethics
and supporting requirements, we deliver
lasting benefits to patients and other
stakeholders. The policies below are
published on our website
(www.astrazeneca.com/sustainability/
resources.html) and/or in use internally.
Sustainability targets
The tables below present sustainability
targets aligned with our material
sustainability topics. Where no targets or
policies are in place due to being implicit
in the existing policy or due to being in
development pending regulatory updates,
they are not listed.
Material sustainability metrics
Definitions and methodology of quantitative
metrics used to track the effectiveness of
our actions related to managing our material
sustainability topics are detailed on pages
212 to 213, 217 to 219. The metrics cover the
Group, unless otherwise stated, and are
subject to limited assurance by KPMG.
Environmental disclosures
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Additional Information
Financial Statements
Strategic Report
Sustainability Statement
Topical disclosures
Environmental sustainability metrics
Metric
Definitions and calculations
(if applicable)
Methodology
Climate change
Gross Scope 1 and
2 (Market‑based)
GHG emissions
(tonnes CO
2
e)
1,2
This is the combined Scope 1
and Scope 2 (Market‑based)
GHG emissions during the
reporting period.
‘Scope 1 GHG emissions’ are
direct emissions that occur
from sources that are
controlled or owned by
AstraZeneca. This includes
GHGs from direct fuel
combustion, process and
engineering fugitive
emissions at sites (e.g. from
refrigerants and solvents)
and from fuel use in
AstraZeneca’s commercial
fleet (leased vehicles).
‘Scope 2 GHG emissions’ are
indirect emissions from the
generation of purchased
energy consumed by
AstraZeneca, and includes
electricity and imported
steam, imported or district
heat and cooling systems.
‘Market‑based’ refers to
factors that are more specific
to the site and local energy
market, taking account of the
residual energy mix and any
certified renewable power
purchased by a site.
All GHG emissions are reported in accordance with the World Resource Institute/World Business
Council for Sustainable Development Greenhouse Gas (GHG) Protocol: A Corporate Accounting and
Reporting Standard, Revised Edition (2015) and Corporate Value Chain (Scope 3
), Accounting and
Reporting Standard (2011).
Intergovernmental Panel on Climate Change (IPCC) Fifth Assessment Report (AR5) GWP values
on a 100‑year period (GWP100) excluding feedback loops were considered, as agreed by the
United Nations Framework Convention on Climate Change.
All GHG emissions are reported on a financial-control basis for the consolidated accounting group.
Investees and other entities which are not fully consolidated in the financial statements, as well as
contractual arrangements, are not material. This covers all owned sites and leased assets that trigger
inclusion based on area, full-time employees and lease length. Investees and other entities not fully
consolidated, as well as contractual arrangements, are not material.
Estimates, any value derived through calculation or modelling rather than direct measurement, are
used where complete, accurate, or directly measured data is unavailable. Uncertainty may arise due
to limitations in underlying data sources, variations in measurement methodologies, or assumptions
about future operations or supply chain activities.
Scope 2 also includes electricity use for charging electric vehicles (battery and plug-in hybrid)
in our Commercial leased fleet.
Data is captured through the centralised SHE reporting system.
Scope 1 is calculated with UK Government Greenhouse Gas Conversion Factors, with CO
2
e
estimates covering direct fuel use and fleet operations.
AstraZeneca purchases biomethane certificates for some fossil gas usage in the UK, US and Europe.
We aim for these certificates to be sourced from the area of gas consumption and annual matching
of generation to ensure relevance and impact. In the UK, Renewable Gas Guarantees of Origin are
retired through the Green Gas Certification Scheme, while in the US, Renewable Thermal Certificates
are tracked via the Midwest Renewable Energy Tracking System. A small number of certificates are
also acquired directly through suppliers in Europe. The reported Scope 1 emissions are calculated
following the Greenhouse Gas Protocol’s guidance on biogenic fuels, with AstraZeneca accounting
for non‑CO
2
greenhouse gases in our Scope 1 emissions. Fugitive emissions from process and
engineering activities are calculated based on the IPCC AR5 GWP100 values.
Our Commercial fleet emissions are derived from direct fuel consumption data or calculated using
average fleet fuel consumption factors and distance travelled, with third-party fleet intensity factors
used for certain markets. Non-business vehicle use is excluded, and emissions relating to electricity
use for battery electric vehicles are reported in Scope 2.
Our Scope 2 emissions reporting follows a market‑based approach, which reflects procurement of
renewable electricity and contractual instruments in line with RE100 criteria. Market-based emission
factors are derived from energy providers and sector databases, while location-based emissions are
calculated using regional emission factors from the International Energy Agency (IEA), US
Environmental Protection Agency eGRID, and other recognised sources. Near-zero emissions are
reported for purchased renewable electricity where eligible, and electricity from on-site solar
generation is counted as zero emissions, subject to confirmation that energy certificates are not
issued or are retired.
Energy consumption is the aggregate of: (i) the annual quantity of energy consumed from activities
for which the Group is responsible, including the combustion of fuel at a facility; (ii) the annual
quantity of energy consumed resulting from the purchase of electricity, heat, steam or cooling by
the Group for its own use; (iii) the combustion of fuel from the operation of vehicle fleet; and (iv) the
annual quantity of energy consumed resulting from the purchase of electricity to operate electric
vehicles as part of the Commercial vehicle fleet.
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Environmental disclosures
continued
Metric
Definitions and calculations
(if applicable)
Methodology
Climate change
Gross Scope 3
GHG emissions
(tonnes CO₂e)
2
‘Scope 3 GHG emissions‘ are
all indirect emissions (not
included in Scope 2) that
occur in the value chain of
AstraZeneca, including both
upstream and downstream
emissions.
AstraZeneca reports on 12 relevant Scope 3 categories in accordance with the GHG Protocol, with
Categories 10 and 14 assessed as not relevant and Category 15 assessed as not material. Data for
Scope 3 is captured from multiple sources.
Category 1 (Purchased Goods and Services) (2025: 3,394,405 tCO₂e) include emissions associated
with AstraZeneca’s sourcing of goods and investments throughout its supply chain. A hierarchical
approach is used to ensure the highest quality data informs emissions calculations. Wherever
possible, product manufacturing data is combined with emission factors derived from detailed
Life‑Cycle Assessments (LCAs), providing a comprehensive ‘cradle‑to‑gate’ footprint. For products
not directly covered by LCAs, proxy data is assigned based on product classification and modality
to maintain relevant coverage. For other spend and, where supplier-specific emission data exists,
spend figures are multiplied by supplier intensity factors. Where supplier-specific data is not
available, multi-regional spend-based emissions factors are applied to procurement categories.
Expenditure not directly linked to purchases, or attributable to other Scope 3 categories (such as
logistics and business travel), is excluded to avoid double counting.
Emission factors and data sources for Category 1 are drawn from supplier disclosures such as CDP
reports, whereby an emission factor is generated based on kgCO₂e per USD revenue for the
supplier, detailed AstraZeneca product LCAs (actual and proxy), and spend-based emission factors
from an environmentally extended input output model (CEDA).
Category 2 (Capital Goods) (2025: 480,217 tCO₂e) include emissions associated with capital
expenditure aligned with our financial reporting. Where available, AstraZeneca utilises embodied
carbon reports based on the final design of projects to calculate emissions. Embodied carbon
emissions cover the product stage (raw materials, transport, manufacturing) as well as the assembly
stage (transport and construction process). Emissions are proportioned across the years construction
occurs. Remaining emissions are calculated by grouping project spend into sustainability categories.
Emissions are then calculated using multi-regional spend-based emissions factors. Intangible assets
and right of use assets are excluded on the basis of having no attributable emissions.
Category 11 (Use of Sold Products) (2025: 1,621,632 tCO₂e) covers emissions resulting from the
end‑use of AstraZeneca’s inhalation devices containing hydrofluorocarbon (F-Gas) propellants.
Emissions are calculated based on production volumes, using the nominal propellant content for
each device and multiplying by GWP factors from the IPCC AR5. Calculations use data substantiated
by third-party LCAs to ensure accuracy. It is assumed, conservatively, that the full propellant charge
is released during use. Emissions are reported by manufacturing date to maintain consistency.
For all other Scope 3 categories, emissions are calculated using GHG Protocol-aligned methods
based on activity data, supplier information, and recognised emission factors. Where specific data
are not available, spend-based or industry-average factors are applied. This approach covers energy
use, transportation, waste, business travel, commuting, leased assets, and end-of-life treatment.
Scope 1 and 2
(Market‑based)
GHG emissions
intensity (tonnes
CO₂e per million
of Total Revenue)
1,2
Scope 1 and 2 intensity
metric normalises the Scope
1 and 2 (Market‑based) GHG
footprint relative to revenue.
‘Emissions intensity’ refers to
the amount of CO
2
emitted
per unit of economic output
or activity.
Calculation: Gross Scope 1
and 2 (Market‑based) GHG
emissions divided by Total
Revenue.
Data is captured through the centralised SHE reporting system.
Share of primary
activity data in
Scope 3 reporting
(%)
‘Primary data’ is data from
specific activities within
AstraZeneca’s value chain.
‘Secondary data’ is data that
is not from specific activities
within AstraZeneca’s value
chain.
Calculation: Scope 3 GHG
emissions from primary data
divided by total Scope 3 GHG
emissions.
Supplier data is captured through several supplier and third-party systems, including CDP.
1
Entity-specific metrics.
2
Data points derived from other EU legislation: SFDR, Pillar 3, Benchmark Regulation.
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Description
Key forces and drivers included in the scenario
Low emission scenario, +1.8°C (SSP1-RCP2.6)
1
This scenario lays out a pathway and emissions trajectory
that is aligned with the objectives of the Paris Agreement
to limit global warming to well below 2°C, preferably to
1.5°C, by 2100, compared with pre-industrial levels.
This scenario assumes a rapid transition to a low-carbon economy, reducing the risk
of extreme climate change and its potential hazards (such as sea level rise, increasing
temperatures, extreme weather conditions and loss of biodiversity).
Current trajectory scenario, +2.7°C (SSP2-RCP4.5)
1
This is an intermediate scenario with emissions peaking
in 2040 and falling rapidly thereafter until 2080. Deemed
to be the ‘most likely’ scenario.
In this scenario, the Paris Agreement of keeping temperature increases ‘well below 2°C
above pre-industrial levels‘ is breached. This scenario leads to an increase in the frequency
and intensity of extreme weather events, rising sea levels, loss of biodiversity and other
negative consequences of climate change.
This scenario model assumes a degree of adaptation and mitigation of emissions, which
helps mitigate some hazards compared to more high-risk scenarios.
High emission scenario, +4.4°C (SSP5-RCP8.5)
1
This is a worst-case scenario consistent with no policy
changes to reduce emissions, where CO
2
concentrations
in the atmosphere are approximately doubled by 2050
and continue to increase until 2100.
The dangers of a significant and rapid increase in the global average temperature leads
to extreme climate conditions, such as severe warming, sea level rise, loss of ice masses,
changes in precipitation patterns and increased risk of extreme weather events. This scenario
also implies a high degree of impact on ecosystems and communities, including loss of
biodiversity, altered habitats and disruption of community infrastructure.
It is the most extreme scenario in terms of climate change.
Metrics to quantify exposure to hazards in this scenario are used in deep-dive risk
assessments for certain sites to pressure test how effective existing mitigations will be in
2030 and 2050. For new projects, data modelling is used for the life-cycle of an asset.
1
Key inputs and constraints of the scenarios: In the three scenarios, the main metrics considered to quantify hazards are: heat, cold, fire, flood, wind, convective storms, water scarcity
and water quality. Flood depth estimates assume no existing flood defences.
Transition risks and opportunities scenarios used
Description
Key forces and drivers included in the scenario
1.5°C (IEA World Energy Outlook (WEO) Net-Zero Emissions by 2050 Scenario (NZE) – equivalent to RCP1.9)
2
The IEA WEO NZE is a normative IEA scenario that shows
a narrow but achievable pathway for the global energy
sector to achieve net‑zero CO
2
emissions by 2050, with
advanced economies reaching NZE in advance of others.
1. Significant low-carbon investment and policy implementation
2. Rapid decarbonisation
3. Extensive increases in energy efficiency
1.7°C (IEA WEO Announced Pledges Scenario (APS) – equivalent to RCP2.6)
2
The IEA WEO APS was used as the primary low‑carbon
future scenario. As a ‘well below 2°C’ pathway, the APS
represents a gateway to the outcomes targeted by the
Paris Agreement.
The APS assumes that governments will meet, in full
and on time, all the climate-related commitments they
have announced, including longer-term net-zero
emissions targets and pledges in Nationally
Determined Contributions.
1. Widespread policy implementation
2. Technological advancements
3. Significant emissions reductions
2.4°C (IEA WEO Stated Policies Scenario – (STEPS) – equivalent to RCP4.5)
2
The IEA WEO STEPS provides a more conservative
benchmark for the future because it does not take for
granted that governments will reach all announced goals.
1. Current policy implementation
2. Energy demand growth
3. Widespread fossil fuel use
4. Technological developments
2
Key inputs and constraints of the scenarios: The three scenarios are used for projections of energy cost, forecasting of carbon price, change in raw material costs and supply-demand
of renewable energy to see how those will relate to our roadmap to net-zero GHG emissions and impact our transition risks and opportunities, and cost of goods and profits.
Climate risk scenarios
To assess the potential impacts of climate
change on our business, we have used the
scenarios listed below.
Physical risks and temperature
scenarios by 2100
Physical climate system conditions
represented in the scenario analysis below,
are based on a set of assumptions about
driving forces (such as demographic
and socio-economic development,
policymaking, technological change, energy
and land use) and their key relationships that
correlate with how the emission pathways
impact elements of society or ecosystems.
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Sustainability Statement
Environmental disclosures
continued
The EU Taxonomy
The EU Taxonomy (Regulation (EU)
2020/852) and associated Delegated Acts
1
represent an evolving classification system
for sustainable economic activities. An
economic activity is Taxonomy-eligible if
it is described in the Taxonomy Delegated
Acts. An economic activity is Taxonomy-
aligned if it makes a substantial contribution
to one or more of the specified
environmental objectives, meets specified
‘Do no significant harm’ (DNSH) criteria
and is carried out in compliance with
minimum safeguards.
Eligibility assessment
The Group has identified its Taxonomy-
eligible activities by screening the economic
activities in the Climate Delegated Act and
the Environmental Delegated Act. The Group
is eligible for a revenue-generating
economic activity included in the
Environmental Delegated Act for the
environmental objective of Pollution
Prevention and Control (PPC), namely, PPC
1.2 Manufacture of medicinal products.
AstraZeneca is engaged in a single business
activity of pharmaceuticals and hence the
Group’s capital expenditure (Capex)
2
and
operating expenditure (Opex)
3
is materially
eligible for the ‘Manufacture of medicinal
products’ activity.
Capex was assessed for Taxonomy-
eligibility on a project basis based on
a set quantitative threshold.
Alignment assessment
Substantial contribution
The ‘Manufacture of medicinal products’
criteria requires that, in order to be aligned,
products be both biodegradable and a
substitute for an existing non-degradable
product. The Group’s portfolio of eligible
products includes both biologics and small
molecule APIs. Innovative medicines by their
very nature are not alternatives to existing
products, hence they do not meet the
substantial contribution criteria. Eligible
products where the APIs are small molecules
are generally considered to be not readily
biodegradable. The biologics used in the
Group’s APIs are mostly naturally occurring
and generally considered to be degradable.
However, in some instances excipients
used in products may not be considered
degradable.
We have therefore assessed that, overall,
our products do not meet the substantial
contribution criteria and do not align with
the ‘Manufacture of medicinal products’
activity criteria.
Interpretation of the EU Taxonomy and
company-specific assumptions are required
to fulfil the reporting requirements.
Revenue
The Taxonomy-eligible Revenue KPI is
defined as Taxonomy-eligible Revenue
divided by Total Revenue, which
corresponds to ‘Total Revenue’ in our
Consolidated Statement of Comprehensive
Income as detailed on page 125.
The Group’s Product Sales and sales
milestones within Collaboration Revenue
are associated with the manufacture of
medicinal products, which we consider
in total for Taxonomy-eligibility under the
activity ‘Manufacture of medicinal products’.
Consequently, our Taxonomy-eligible
Revenue KPI for the year ended
31 December 2025 is 95% (2024: 96%).
Capital expenditure
The Taxonomy-eligible Capex KPI is defined
as Taxonomy-eligible Capex divided by Total
Capex.
•
Taxonomy-eligible Capex is Capex related
to assets or processes associated with
Taxonomy-eligible activities. Property,
purchase of plant and equipment,
right-of-use buildings, intangible assets,
purchase of marketing and distribution
rights over medicinal products are
considered in total for Taxonomy-eligibility
under the activity ‘Manufacture of
medicinal products’.
•
Total Capex corresponds to the total of the
‘Additions through business combinations’
and ‘Capital expenditure’ movement
types, the total of the ‘Additions –
separately acquired’ and ‘Additions
through business combinations’
movement types as detailed in Note 8
Property, plant and equipment (page 149),
the total of the ‘Additions – separately
acquired’ and ‘Additions through business
combinations’ movement types as detailed
in Note 9 Leases (page 150), and the total
of the ‘Additions – separately acquired’
and ‘Additions through business
combinations’ movement types as detailed
in Note 11 Intangible assets (page 151).
The Group’s Taxonomy‑eligible Capex KPI
for the year ended 31 December 2025 is
83% (2024: 86%).
Operating expenditure
The Taxonomy‑eligible Opex KPI is
defined as Taxonomy‑eligible Opex
divided by Total Opex.
•
The Group’s Taxonomy‑eligible Opex is
expenses related to assets or processes
associated with Taxonomy-eligible
economic activities. R&D expenses
associated with functional areas which
are involved directly in the manufacture
and procurement of medicinal products
are considered Taxonomy-eligible under
the activity ‘Manufacture of medicinal
products’.
•
The Group’s Taxonomy‑defined Opex
is the total of R&D expenses, and other
direct non-capitalised costs that relate to
building renovation measures, short-term
leases, maintenance and repair, and any
other direct expenditures incurred in the
day-to-day servicing of property, plant
and equipment.
The Group’s Taxonomy‑eligible Opex KPI
for the year ended 31 December 2025 is
21% (2024: 18%).
1
On 8 January 2026, the EU Commission published a delegated act amending the Disclosures, Climate, and Environmental Delegated Acts that supplement the Taxonomy Regulation,
which introduces a materiality threshold for eligibility and alignment as well as a simplified reporting table.
2
As part of our materiality assessment in the current year we have categorised construction and renovation project Capex towards the manufacture of medicinal products, with the
exception of R&D functional areas, which is not assessed as it is considered not material (in the prior year, construction and renovation project Capex was categorised as an individual
measure against individual real estate activities).
3
As part of our materiality assessment in the current year we have categorised maintenance Opex towards the manufacture of medicinal products (in the prior year, this was
categorised as an individual measure against individual real estate activities).
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Annual Report & Form 20-F Information 2025
Corporate Governance
Sustainability Statement
Additional Information
Financial Statements
Strategic Report
Sustainability Statement
EU Taxonomy tables
Financial year
2025
Breakdown by environmental objectives
of Taxonomy-aligned activities
KPI
Total
Proportion of Taxonomy-eligible
activities
Taxonomy-aligned activities
Proportion of Taxonomy-aligned
activities
Climate Change Mitigation
Climate Change Adaptation
Water
Pollution
Circular Economy
Biodiversity
Proportion of enabling activities
Proportion of transitional activities
Not assessed activities
considered non-material
Taxonomy-aligned activities in
2024
Proportion of Taxonomy-aligned
activities in 2024
$m
%
$m
%
%
%
%
%
%
%
%
%
%
$m
%
Revenue
58,739
95
0
0
0
0
0
0
0
0
0
0
0
0
0
Capex
7,595
83
0
0
0
0
0
0
0
0
0
0
7
0
0
Opex
14,818
21
0
0
0
0
0
0
0
0
0
0
0
0
0
Revenue
Financial year
2025
Breakdown by environmental objectives
of Taxonomy-aligned activities
Economic Activities
Code
Taxonomy-eligible KPI (proportion
of Taxonomy-eligible Revenue)
Taxonomy-aligned KPI (monetary
value of Revenue)
Taxonomy-aligned KPI (proportion
of Taxonomy-aligned Revenue)
Climate Change Mitigation
Climate Change Adaptation
Water
Pollution
Circular Economy
Biodiversity
Enabling activity
Transitional activity
Proportion of Taxonomy-aligned in
Taxonomy-eligible
%
$m
%
%
%
%
%
%
%
E
T
%
Manufacture of medicinal products
PPC 1.2
95
0
0
0
0
0
0
0
0
0
Total KPI
95
0
0
0
0
0
0
0
0
0
Capex
Financial year
2025
Breakdown by environmental objectives
of Taxonomy-aligned activities
Economic Activities
Code
Taxonomy-eligible KPI (proportion
of Taxonomy-eligible Capex)
Taxonomy-aligned KPI (monetary
value of Capex)
Taxonomy-aligned KPI (proportion
of Taxonomy-aligned Capex)
Climate Change Mitigation
Climate Change Adaptation
Water
Pollution
Circular Economy
Biodiversity
Enabling activity
Transitional activity
Proportion of Taxonomy-aligned in
Taxonomy-eligible
%
$m
%
%
%
%
%
%
%
E
T
%
Manufacture of medicinal products
PPC 1.2
83
0
0
0
0
0
0
0
0
0
Total KPI
83
0
0
0
0
0
0
0
0
0
Opex
Financial year
2025
Breakdown by environmental objectives
of Taxonomy-aligned activities
Economic Activities
Code
Taxonomy-eligible KPI (proportion
of Taxonomy-eligible Opex)
Taxonomy-aligned KPI (monetary
value of Opex)
Taxonomy-aligned KPI (proportion
of Taxonomy-aligned Opex)
Climate Change Mitigation
Climate Change Adaptation
Water
Pollution
Circular Economy
Biodiversity
Enabling activity
Transitional activity
Proportion of Taxonomy-aligned in
Taxonomy-eligible
%
$m
%
%
%
%
%
%
%
E
T
%
Manufacture of medicinal products
PPC 1.2
21
0
0
0
0
0
0
0
0
0
Total KPI
21
0
0
0
0
0
0
0
0
0
216
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Corporate Governance
Sustainability Statement
Additional Information
Financial Statements
Strategic Report
Sustainability Statement
Environmental disclosures
continued
Social policies
Key contents
Scope
Accountability
Material topics
Global Human Resources Standards
Sets out our principles for Employment, HR Data,
Inclusion and Diversity, Recruitment, Reward, Talent
Management, and Bullying and Harassment.
The Employment, Talent Management, and HR
Data Standards apply to AstraZeneca employees.
The Talent Acquisition and Rewards Standards
apply to line managers. The Inclusion and Diversity,
and Bullying and Harassment Standards apply to
all employees, managers and contingent workers.
Chief HR Officer
People
Human Rights Standard
*
Mandatory principles for upholding human rights
across the organisation, guided by the principles
of the Universal Declaration of Human Rights, the
International Labour Organization’s Declaration on
Fundamental Principles and Rights at Work, Covenant
on Civil and Political Rights, International Covenant on
Economic, Social and Cultural Rights, the United Nations
Guiding Principles on Business and Human Rights and
the Organisation for Economic Co‑operation and
Development Guidelines for Multinational Enterprises.
All AstraZeneca employees including workers
and any agents acting on AstraZeneca’s behalf.
Approved by the CEO,
implemented through
the Global Compliance
function
All
Product to Patient Governance Pathway
Comprises vital investment decisions and other key
development milestones from the Candidate Drug
Investment Decision to health authority approval.
All therapeutic areas within R&D.
Global Portfolio and Project
Management
Sustainable
innovation
Quality Policy
Identifies our Company’s Quality responsibilities and
commitments to the health of our patients.
Applies to all AstraZeneca employees and
contractors involved in, or supporting, Good
Pharmaceutical Practice (GxP) activities,
external partners, GxP material suppliers and
GxP service providers.
Head of Global Quality,
Head of R&D Quality
Assurance
Patient safety
and product
quality
Global Standard – Quality Management Systems (QMS)
Defines our QMS and explains how the functions
involved in GxP activities meet the requirements set
by regulators, third parties, patients, and ourselves.
Applies to all AstraZeneca employees and
contractors involved in, or supporting, GxP
activities, external partners, GxP material
suppliers and GxP service providers.
Head of Global Quality,
Head of R&D Quality
Assurance
Patient safety
and product
quality
Social sustainability targets
Target and relations to policy
Year
Notes
Sustainable innovation
By 2030, we aim to launch at least
20 new medicines.
2030
Our Ambition 2030 workstreams focus on accelerating our strategic priorities, exploring new
ones and building for the future. Our scientific measures incentivise the development of new
molecular entities (NMEs) and maximise the potential of existing medicines. Oncology,
BioPharmaceuticals and Rare Disease are all in scope.
Accessible and affordable healthcare
By 2030, we aim to positively impact
one billion people, including 400 million
people from underserved groups.
2030
In May 2025, we updated our health equity strategy, embedding health equity across science
(including genomics and clinical trials), healthcare delivery and community investment, with a 2030
ambition to positively impact one billion people, including 400 million from underserved communities.
Social sustainability metrics
Metric
Definitions and calculations (if applicable)
Methodology
Sustainable innovation
Number of NMEs
(approvals cumulative)
1
‘NME approvals’ refers to medicines approved since October 2022
to meet our Ambition 2030.
Data is collected via a monthly reporting process,
captured on AstraZeneca’s project planning and
forecasting tool, and maintained by the Global
Portfolio and Project Management team.
Approvals for the same drug in different countries
are considered distinct regulatory events.
Number of pipeline
progression events
1
‘Pipeline progression events’ refers to the commencement of Phase II,
and progression to an investment decision. The commencement of
Phase II refers to when the first patient consents in Phase II of the trial.
An investment decision may be a Phase II pivotal investment decision
or a Phase III investment decision, where a positive outcome is expected
to proceed to regulatory filing in the subsequent phase.
For further information on Phase II and III, see page 9.
Number of regulatory
events
1
‘Regulatory events’ refers to submissions or approvals for our
medicines in major markets.
1
Entity-specific metrics.
*
Data point derived from other EU legislation: SFDR, Benchmark Regulation.
217
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Sustainability Statement
Additional Information
Financial Statements
Strategic Report
Sustainability Statement
Social disclosures
Metric
Definitions and calculations (if applicable)
Methodology
Patient safety and product quality
Number of inspections
from all health
authorities relating to
Good Manufacturing
Practice (GMP) and
Good Distribution
Practice (GDP)
1
‘Health authorities’ refers to government agencies that are responsible
for protecting and promoting public health through the supervision
of pharmaceutical products.
‘Inspections’ refers to assessments of manufacturing facilities and
processes for regulated products to verify compliance with relevant
regulations, by health authorities.
GMP is part of a quality management system which ensures that
products are consistently produced and controlled to the quality
standards appropriate to their intended use and as required by the
marketing authorisation. This covers commercial product manufacture
and marketing companies’ GDP, products in development going into
clinical trials, and device manufacturing.
Inspection is counted once observations have been received.
Data is captured on an internal quality management
system by the Operations Quality Assurance team.
Number of critical
findings from health
authorities relating
to GMP and GDP
1
‘Critical findings’ are deficiencies with GMP or GDP reported by health
authorities, that provide an immediate and significant risk to patient
safety. A ‘critical finding’ can also be a combination or repetition
of major findings that indicate a critical failure of GMP or GDP.
Number of product
recalls
1
‘Recalls’ can be initiated at various levels:
•
Level 1 is at wholesale level
•
Level 2 is at pharmacy/hospital level
•
Level 3 is at patient level.
People
Employee belief that
AstraZeneca is a great
place to work (%)
1
‘Employee belief’ refers to the positive response (agree and tend to
agree) to each respective statement in our annual employee opinion
survey, Pulse.
Calculation: Total number of responses that either agree or tend to agree
divided by total number of responses, then multiplied by 100.
Data is captured annually through our Pulse survey
conducted by HR and shared Company-wide.
Employee belief that
in the last 12 months,
I have improved my
existing skills, or
learned new skills, or
had a development
opportunity (%)
1
Accessible and affordable healthcare
Number of people
positively impacted
(cumulative, million)
1
‘People positively impacted’ includes: patients treated by our Oncology,
BioPharmaceuticals, and Rare Disease medicines which is an estimate
of the average number of patients on therapy in the reporting year;
people reached through awareness initiatives; people screened through
health equity programmes; and healthcare workers trained.
The number of patients treated by our medicines
is estimated based on volume of inventory sold,
assumed days of therapy and average level of patient
adherence to the treatment. An individual patient may
be treated for different diseases with more than one
medicine. Average patient adherence rates are
defined by the AstraZeneca Global Insights team by
therapy area and are a key assumption used in the
estimate. As an average, actual patient adherence
rates may differ.
The number of people reached is aggregated from
each programme and each market as relevant. The
number of healthcare workers trained refers to those
who receive education through in-person classroom-
style sessions, online courses and attending
symposiums.
Figures are cumulative, with 2024 as the baseline
year, and encompass all historical data since then.
Number of people
positively impacted
from underserved
groups (cumulative,
million)
1
‘Underserved groups’ are defined as all patients in low‑ and middle‑
income countries in line with the World Bank Group country classification
by income level, in addition to Rare Disease patients.
We recognise that underserved communities exist in all countries
regardless of income classification, however current publicly available
data do not provide a detailed breakdown of underserved populations
in high-income and upper-middle-income countries.
1
Entity-specific metrics.
Social sustainability metrics
continued
218
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Annual Report & Form 20-F Information 2025
Corporate Governance
Sustainability Statement
Additional Information
Financial Statements
Strategic Report
Sustainability Statement
Social disclosures
continued
Governance policies
Key contents
Scope
Accountability
Material topics
Code of Ethics
•
Our Values
•
Our Science
•
Our Interactions
•
Our Workplace
•
Our Sustainability
Applies to all Executive and Non-Executive
Directors, officers, employees and contract
staff of our Group.
Approved by the Audit
Committee, implemented
through our Chief
Compliance Officer and CEO
All
Code of Conduct for Third Parties
Translates our Code of Ethics into content applicable
and relevant to our supply chain, across the topics:
ethics, human and labour rights, health and safety,
environment, management systems, and reporting.
Applies to all our suppliers.
Approved by the Chief
Procurement Officer and
implemented through the
Global Procurement function
All
Anti-Bribery and Anti-Corruption Global Standard
Outlines our key anti‑bribery and anti‑corruption
principles and provides guidance on how to apply
our Values.
Applies to all our employees, contractors and
third parties.
Approved, implemented, and
reported on to the Board and
Audit Committee through our
Deputy Chief Compliance
Officer
Business
conduct
Promoting our Products Global Standard
Key principles pertaining to product promotion at the
Company.
Applies to all our employees and contract
staff engaged in the promotion of our
products.
Deputy Chief Compliance
Officer approves and
implements the Standard
Business
conduct
IT Security Policy Framework
IT Security Policy, Standards, Standard Operating
Procedures and Secure Baseline Configurations,
based on the US National Institute of Standards and
Technology Cybersecurity Framework, EU NIS2
Directive and General Data Protection Regulation.
Applies to all information assets and
underlying IT and operational technologies
and services that we own and/or utilise are
covered by the policy, along with all our
employees and external/third-party
companies and personnel.
Chief Information
Security Officer
Cybersecurity
and data
privacy
Data Privacy Standard
Privacy risks, data collection, transparency and
consent, data minimisation, legitimacy, accuracy,
security, data subject rights and requests, retention,
international transfers, third-party access, and
marketing and promotional activities.
Applies to all entities within the Group, the
Company and all our employees and
temporary staff who have access to personal
data as part of their business activities.
Senior Executive Team
Data privacy
Governance metrics
Metric
Definitions and calculations (if applicable)
Methodology
Cybersecurity and data privacy
Number of material
cybersecurity incidents
1
A ‘material cybersecurity incident’ is defined as material unauthorised
access, disclosure or disruption of information systems of data that
significantly impacts the confidentiality, integrity or availability of critical
assets, operations, or stakeholders.
Data is collected through incident reports,
security logs and continuous monitoring
tools. Designated cybersecurity and data
privacy members are responsible for data
collection.
Number of material
security breaches
involving personal data
1
‘Material security breaches’ refers to material unauthorised access to
personal data. A reported breach alone does not constitute a material breach.
1
Entity-specific metrics.
219
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Corporate Governance
Sustainability Statement
Additional Information
Financial Statements
Strategic Report
Sustainability Statement
Governance disclosures
Sustainability assurance providers’
limited assurance report of AstraZeneca
PLC’s Sustainability Statement prepared
in accordance with the European
Sustainability Reporting Standards (ESRS)
To the Board of Directors of AstraZeneca PLC,
corporate identity number 02723534.
Conclusion
We have conducted a limited assurance
engagement of the Sustainability Statement
for AstraZeneca PLC (the Company) for the
financial year 2025. The Sustainability
Statement is included on pages 204 to 221
in this document, as well as in the sections
noted in the table ‘Cross-references to other
parts of the Annual Report’ on pages 208 to
210 of the Sustainability Statement.
Based on our limited assurance engagement
as described in the section Sustainability
assurance provider's responsibility, nothing
has come to our attention that causes us
to believe that the Sustainability Statement
does not, in all material respects, meet the
requirements of the Swedish Annual
Accounts Act (Sw: Årsredovisningslagen
(1995:1554)) which includes
:
•
whether the Sustainability Statement
meets the requirements of ESRS,
•
whether the process the Company
has carried out to identify reported
sustainability information has been
conducted as described in the
Sustainability Statement, and
•
compliance with the reporting requirements
of the EU’s Green Taxonomy Regulation
Article 8.
Basis for conclusion
We have conducted the assurance
engagement in accordance with the Institute
for the Accountancy Profession in Sweden,
Föreningen Auktoriserade Revisorer (FAR’s)
recommendation (standard) RevR 19
The
auditor’s limited assurance regarding the
statutory Sustainability Statement.
Our responsibility according to this
recommendation is further described in the
section Sustainability assurance providers’
responsibility.
We believe that the evidence we have
obtained is sufficient and appropriate
to provide a basis for our conclusion.
Other matters – Comparative information
The comparative information included in the
Sustainability Statement of the Company,
was subject to an assurance engagement
performed by Bureau Veritas UK Limited
who submitted a limited assurance report
in accordance with ISAE 3000 (revised)
Assurance engagements other than audits
or reviews of historical financial information
and ISAE 3410 Assurance Engagements on
Greenhouse Gas (GHG)
dated 5th February
2025, with unmodified conclusion. Our
conclusion is not modified in respect of
this matter.
Information other than the Sustainability
Statement
This Annual Report and Form 20-F
information also contains information other
than the Sustainability Statement and is
found on pages 1 to 203, 222 to 228, with
the exception of the sections disclosed in
the table ‘Cross-references to other parts
of the Annual Report’ on pages 208 to 210.
The Directors are responsible for this
other information.
Our conclusion on the Sustainability
Statement does not cover this other
information and we do not express any
form of assurance conclusion regarding
this other information.
In connection with our limited assurance
engagement on the Sustainability Statement,
our responsibility is to read the information
identified above and consider whether the
information is materially inconsistent with the
Sustainability Statement. In this procedure
we also take into account our knowledge
otherwise obtained in the limited assurance
engagement and assess whether the
information otherwise appears to be
materially misstated.
If we, based on the work performed
concerning this information, conclude that
there is a material misstatement of this other
information, we are required to report that
fact. We have nothing to report in this regard.
Responsibilities of the Directors
The Directors are responsible for the
preparation of the Sustainability Statement
in accordance with Chapter 6, Sections
12–12f of the Swedish Annual Accounts Act,
and for such internal control as they
determine is necessary to enable the
preparation of the Sustainability Statement
that is free from material misstatements,
whether due to fraud or error.
Sustainability assurance providers’
responsibility
Our responsibility is to express a conclusion
on whether the Sustainability Statement has
been prepared in accordance with Chapter 6,
Sections 12–12f of the Swedish Annual
Accounts Act based on our limited assurance
review. The assurance engagement has
been conducted in accordance with FAR’s
recommendation (standard) RevR 19
The auditor’s limited assurance regarding
the statutory Sustainability Statement.
This recommendation requires that we plan
and perform our procedures to obtain limited
assurance that the Sustainability Statement
is prepared in accordance with these
requirements.
The procedures in a limited assurance
engagement vary in nature and timing from,
and are less in extent than for, a reasonable
assurance engagement. Consequently,
the level of assurance obtained in a limited
assurance engagement is substantially lower
than the assurance that would have been
obtained had a reasonable assurance
engagement been performed. This means
that it is not possible for us to obtain such
assurance that we become aware of all
significant matters that could have been
identified if a reasonable assurance
engagement had been performed.
Our firm applies ISQM 1 (International
Standard on Quality Management), which
requires the firm to design, implement and
operate a system of quality management,
including policies and procedures regarding
compliance with ethical requirements,
professional standards, and applicable legal
and regulatory requirements.
We have complied with the independence
and other ethical requirements of the
International Code of Ethics for Professional
Accountants (including International
Independent Standards) issued by the
International Ethics Standards Board of
Accountants (IESBA), together with the
professional ethics requirements for
accountants in Sweden.
A limited assurance engagement involves
performing procedures to obtain evidence
to support the Sustainability Statement.
The sustainability assurance provider selects
the procedures to be performed, including
assessing the risks of material misstatements
in the Sustainability Statement, whether due
to fraud or error. In this risk assessment, the
sustainability assurance provider considers
the parts of the internal control that are
relevant to how the Directors prepare the
Sustainability Statement, in order to design
procedures that are appropriate under the
circumstances, but not for the purpose of
providing a conclusion on the effectiveness
of the Company’s internal control. The review
consists of making inquiries, primarily of
persons responsible for the preparation
of the Sustainability Statement, performing
analytical review, and conducting other
limited review procedures.
220
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Annual Report & Form 20-F Information 2025
Corporate Governance
Sustainability Statement
Additional Information
Financial Statements
Strategic Report
Independent Sustainability Assurance Report
Independent Sustainability Assurance Report
In conducting our limited assurance
engagement, with respect to the process
undertaken to identify the sustainability
information to be reported, we have:
•
Obtained an understanding of the
process by:
–
performing inquiries to understand
the sources of the information used
by management; and
–
reviewing the Company’s internal
documentation of its process; and
•
Evaluated whether the evidence obtained
from our review procedures about the
process implemented by the Company
was consistent with the description of
the process set out in the Sustainability
Statement.
In conducting our limited assurance
engagement, with respect to the Sustainability
Statement, we have performed, but were not
limited to, the following:
•
Obtained an understanding of the
Company’s reporting processes relevant
to the preparation of its Sustainability
Statement including the consolidation
processes by obtaining an understanding
of the Company’s control environment,
processes and information systems
relevant to the preparation of the
Sustainability Statement;
•
Evaluated whether material information
identified by the process is included in
the Sustainability Statement;
•
Evaluated whether the structure and the
presentation of the Sustainability
Statement are in accordance with ESRS;
•
Performed inquiries of relevant personnel
and analytical procedures on selected
information in the Sustainability Statement;
•
Performed substantive assurance
procedures on a selected sample of
information in the Sustainability Statement;
•
Evaluated selected methods, assumptions
and data for developing material estimates
and forward-looking information and how
these methods were applied;
•
Obtained an understanding of the process
to identify Taxonomy-eligible and
Taxonomy-aligned economic activities
and the corresponding disclosures in the
Sustainability Statement; and
•
Where applicable, compared disclosures
in the Sustainability Statement with the
corresponding disclosures in the financial
statements.
•
Evaluated whether material information
disclosed in accordance with ESRS E1
Climate change meets the compliance
requirements of the UK Companies Act
and aligns with the recommendations
of the Task Force on Climate-related
Financial Disclosures (TCFD).
Inherent limitations in preparing the
Sustainability Statement
In reporting forward-looking information
in accordance with ESRS, the Directors
of AstraZeneca PLC are required to prepare
the forward-looking information on the basis
of disclosed assumptions about events that
may occur in the future and possible future
actions by AstraZeneca PLC. Actual
outcomes are likely to be different since
anticipated events frequently do not occur
as expected.
Stockholm 10 February 2026
KPMG AB
Ola Larsmon
Authorised Public Accountant
London 10 February 2026
Paul Nichols
Chartered Accountant
221
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Annual Report & Form 20-F Information 2025
Corporate Governance
Sustainability Statement
Additional Information
Financial Statements
Strategic Report
Independent Sustainability Assurance Report
Additional
Information
Contents
Shareholder information
223
Directors’ Report
224
Glossary
227
Cautionary statement regarding
forward-looking statements
228
Corporate Governance
Sustainability Statement
Additional Information
Financial Statements
Strategic Report
222
AstraZeneca
Annual Report & Form 20-F Information 2025
Additional Information
This section of the Annual Report contains
information for shareholders that is required
by regulation in the UK. Further information
that may be of use to shareholders is available
on the Shareholder information page of our
website at www.astrazeneca.com. Additional
information required by SEC regulations is
included in AstraZeneca’s Form 20-F filing
for 2025, which is available on the SEC
website at www.sec.gov.
Shareholders approved proposals to
harmonise AstraZeneca’s equity listing
structure at a general meeting of the
Company on 3 November 2025. Following
implementation of the listing harmonisation
on 2 February 2026, the principal markets
for trading in AstraZeneca shares are the
London Stock Exchange, Nasdaq Stockholm
and the New York Stock Exchange. Ordinary
Shares of US $0.25 each in AstraZeneca
PLC are listed directly on all three exchanges
under the stock symbol AZN and the
shareholder register is maintained by
Computershare Trust Company, N.A., the
Company’s transfer agent. Shares trading
on the London Stock Exchange are settled
in the form of Depositary Interests (DIs)
issued by the Company’s DI Depositary,
Computershare Investor Services PLC,
with each DI representing an entitlement
to one Ordinary Share. The DI Depositary
maintains a register of DIs which is
accessible to AstraZeneca. Shares traded
on Nasdaq Stockholm are held through
Euroclear Bank SA/NV as custodian for
Euroclear Sweden AB, the Swedish
Central Securities Depositary.
Transfer Agent
Computershare Investor Services
PO Box 43078
Providence, RI 02940-3078
USA
Tel (general): +1 888 697 8018
Tel (outside US): +1 781 575 2844
DI Depositary and Corporate
Sponsored Nominee (CSN) Provider
Computershare Investor Services PLC
The Pavilions
Bridgwater Road
Bristol
BS99 6ZY
United Kingdom
Tel (inside UK): 0370 707 1682
Tel (outside UK): +44
(0) 370 707 1682
Swedish Central Securities Depositary
Euroclear Sweden AB
PO Box 191
SE-101 23 Stockholm
Sweden
Tel: +46 (0)8 402 9000
Annual General Meeting (AGM)
The 2026 AGM will be held on 9 April 2026
and further details will be set out in the
Notice of AGM.
Dividends
A first interim dividend is normally announced
in July/August and paid in September and
a second interim dividend is normally
announced in February and paid in March.
Dividends are paid in GBP, SEK and USD,
depending on where the eligible shares are
listed. Dates for the second interim dividend
for 2025 are shown below.
Event
Date
Second interim dividend
for 2025
Ex-dividend date
(for shares traded on the
London Stock Exchange
or Nasdaq Stockholm)
19 February 2026
Ex-dividend date
(for shares traded
on the New York
Stock Exchange)
20 February 2026
Record date
20 February 2026
Payment date
23 March 2026
Other dates, including expected
announcement dates, are available in
the Investors section of our website,
www.astrazeneca.com.
The completion of cross-border movements
of shares by intermediaries between the
London Stock Exchange, Nasdaq Stockholm
and the New York Stock Exchange is subject
to the receiving broker identifying and
confirming such movements. Where a
cross-border movement of shares is
initiated but not completed by the relevant
dividend record date, the dividend in respect
of those shares will be received in the
originating market on the relevant dividend
payment date.
Related party transactions
During the period 1 January 2026 to
31 January 2026, there were no transactions,
loans, or proposed transactions between the
Company and any related parties which were
material to either the Company or the related
party, or which were unusual in their nature
or conditions (see also Note 31 to the
Financial Statements on page 191).
Conflicts of interest
The Articles of Association of the Company
enable the Directors to authorise any
situation in which a Director has an interest
that conflicts or has the potential to conflict
with the Company’s interests and which
would otherwise be a breach of the Director’s
duty, under section 175 of the Companies
Act 2006. The Board has a formal system
in place for Directors to declare such
situations to be considered for authorisation
by those Directors who have no interest in
the matter being considered.
In deciding whether to authorise a situation,
the non-conflicted Directors must act in the
way they consider, in good faith, would be
most likely to promote the success of the
Company, and they may impose limits or
conditions when giving the authorisation,
or subsequently, if they think this is
appropriate. Situations considered by the
Board and authorisations given are recorded
in the Board minutes and in a register
of conflicts maintained by the Company
Secretary and are reviewed annually
by the Board. The Board believes that
this system operates effectively.
Shareholder fraud warning
Shareholders of AstraZeneca and many
other companies have reported receiving
unsolicited calls and correspondence
relating to their shareholdings and
investment matters. Shareholders are
advised to be very cautious of any
unsolicited approaches and to note that
reputable firms authorised by the Financial
Conduct Authority (FCA) are very unlikely
to make such approaches. Such approaches
are likely to be part of a ‘boiler room scam’
attempting to defraud shareholders.
Shareholders are advised to familiarise
themselves with the information on
scams available on the FCA website,
www.fca.org.uk/consumers and with
the FAQs in the Investors section of our
website, www.astrazeneca.com.
Any suspected scams or fraudulent
approaches should be reported to the
FCA via its website and to AstraZeneca’s
DI Depositary and CSN Provider contact
listed on this page.
For more information on
dividends declared, see the
Shareholder information
section of our website,
www.astrazeneca.com.
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Annual Report & Form 20-F Information 2025
Corporate Governance
Sustainability Statement
Additional Information
Financial Statements
Strategic Report
Shareholder information
Shareholder information
The Directors’ Report includes information
required to be given in accordance with the
Companies Act 2006.
Relevant information below, which is
contained elsewhere in the Annual Report,
is incorporated by cross reference herein.
Subsidiaries and principal activities
The Company is the holding company for
a group of subsidiaries whose principal
activities are described in this Annual Report.
The Group’s subsidiaries and their locations
are set out in Group Subsidiaries and
Holdings in the Financial Statements
from page 192.
Branches and countries in which the
Group conducts business
In accordance with the Companies Act
2006, we disclose below countries of our
representative, scientific or branch offices
outside of the UK, established through
various subsidiaries of the Company:
Algeria, Angola, China, Costa Rica, Cuba,
Denmark, Egypt, Georgia, Ghana, Jordan,
Lebanon, Norway, Portugal, Romania,
Russia, Saudi Arabia, Slovakia, Slovenia,
Switzerland, Syria, Ukraine, United Arab
Emirates, the US and Vietnam.
Disclosure of information to auditors
The Directors who held office at the date
of approval of this Annual Report confirm
that, so far as they are each aware, there
is no relevant audit information of which the
Company’s auditors are unaware; and each
Director has taken all the steps that he or
she ought to have taken as a Director
to make himself or herself aware of any
relevant audit information and to establish
that the Company’s auditors are aware
of that information.
Going concern accounting basis
Information on the business environment
in which AstraZeneca operates, including
the factors underpinning the industry’s
future growth prospects, is included in the
Strategic Report. Details of the product
portfolio of the Group are contained in the
Strategic Report (in the Therapy Area Review
from page 12). For information on patent
expiry dates for key marketed products,
see the Patent Expiries of Key Marketed
Products Supplement on our website,
www.astrazeneca.com/annualreport2025.
Our approach to product development is
covered in detail, with additional information
by therapy area, in the Strategic Report.
For information on our development
pipeline, see the Development
Pipeline Supplement on our website,
www.astrazeneca.com/annualreport2025.
The financial position of the Group, its cash
flows, liquidity position and borrowing
facilities are described in the Financial
Review from page 50. In addition, Note 28
to the Financial Statements from page 171
includes the Group’s objectives, policies and
processes for: managing capital; financial
risk management objectives; details of its
financial instruments and hedging activities;
and its exposures to credit, market and
liquidity risk. Further details of the Group’s
cash balances and borrowings are included
in Notes 18 and 19 to the Financial
Statements on pages 156 to 158.
Having assessed the Principal Risks and
other matters considered in connection
with the Viability Statement on page 46, the
Board considers it appropriate to adopt the
going concern basis of accounting in preparing
the Annual Report and Financial Statements.
Shares
A shareholders’ resolution was passed at
the 2025 AGM authorising the Company to
purchase its own shares. The Company did
not purchase any of its own shares in 2025.
On 31 December 2025, the Company did
not hold any shares in treasury.
Rights, preferences and restrictions
attaching to shares
As at 31 December 2025, the Company had
1,550,907,927 Ordinary Shares and 50,000
Redeemable Preference Shares in issue.
The Ordinary Shares represent 99.98% and
the Redeemable Preference Shares represent
0.02% of the Company’s total share capital
(these percentages have been calculated by
reference to the 8am WM/Reuters USD/GBP
exchange rate on 31 December 2025).
As agreed by the shareholders at the
Company’s AGM held on 29 April 2010, the
Articles of Association of the Company were
amended with immediate effect to remove
the requirement for the Company to have
an authorised share capital, the concept of
which was abolished under the Companies
Act 2006. The rights and restrictions
attaching to the shares (in addition to
those imposed by law) are set out in the
Company’s Articles. Each Ordinary Share
carries the right to vote at general meetings
of the Company, subject to certain temporary
limitations applicable to AstraZeneca shares
held through a temporary holding facility
on behalf of persons resident in certain
jurisdictions who were certificated holders
of AstraZeneca shares or registered holders
of AstraZeneca ADRs prior to implementation
of the Company’s listing harmonisation.
The rights and restrictions attaching to
the Redeemable Preference Shares differ
from those attaching to Ordinary Shares
as follows:
•
The Redeemable Preference Shares
carry no rights to receive dividends.
•
The holders of Redeemable Preference
Shares have no rights to receive notices
of, attend or vote at general meetings,
except in certain limited circumstances.
They have one vote for every 50,000
Redeemable Preference Shares held.
•
On a distribution of assets of the
Company, on a winding-up or other return
of capital (subject to certain exceptions),
the holders of Redeemable Preference
Shares have priority over the holders of
Ordinary Shares to receive the capital
paid up on those shares.
•
Subject to the provisions of the
Companies Act 2006, the Company
has the right to redeem the Redeemable
Preference Shares at any time on giving
not less than seven days’ written notice.
There are no specific restrictions on the
transfer of shares in the Company, which
is governed by the Articles and prevailing
legislation.
The Company is not aware of any agreements
between holders of shares that may result
in restrictions on the transfer of shares
or that may result in restrictions on voting
rights. The Company is also not aware of
any arrangements under which financial
rights are held by a person other than the
holder of the shares.
Action necessary to change the rights
of shareholders
In order to vary the rights attached to any
class of shares, the consent in writing of
the holders of three quarters in nominal
value of the issued shares of that class or the
sanction of a special resolution passed at a
general meeting of such holders is required.
Changes in share capital
Changes in the Company’s Ordinary Share
capital during 2025, including details of the
allotment of new shares under the
Company’s share plans, are given in Note 24
to the Financial Statements from page 169.
Employee share trust ownership rights
The trustee of the AstraZeneca Employee
Benefit Trust (the EBT, the Trustee) will not
exercise voting rights attached to shares
held in the EBT (Shares). Any decision as
to acceptance or rejection of an offer for
Shares subject to subsisting awards would
be made by the Trustee, having regard to
the interests of award holders.
There is a further employee benefit trust for
the benefit of employees who are residents
in Canada (the Canada EBT). The trustees of
the Canada EBT will not exercise voting rights
attached to shares held in the Canada EBT.
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Annual Report & Form 20-F Information 2025
Corporate Governance
Sustainability Statement
Additional Information
Financial Statements
Strategic Report
Directors’ Report
Directors’ Report
Distributions to shareholders –
dividends for 2025
Details of our distribution policy are set out in
the Financial Review from page 50 and Note
28 to the Financial Statements from page 171.
The Company’s dividend for 2025 of $3.20
(236.2 pence, 29.30 SEK) per Ordinary
Share is estimated to amount to, in aggregate,
a total dividend payment to shareholders
of $4,963 million. The AstraZeneca EBT
waived its right to receive the dividend on
the Ordinary Shares and ADRs it holds.
The Canadian EBT waived its right to receive
the dividend on the Ordinary Shares it holds.
The AstraZeneca Share Trust waived its right
to receive the dividend on the Ordinary Shares
it holds and instead received nominal dividends.
Articles of Association
AstraZeneca PLC’s current Articles were
adopted by shareholders at a general
meeting of the Company held on
3 November 2025. Any amendment
to the Articles requires the approval of
shareholders by a special resolution at
a general meeting of the Company, other
than Article 40. Article 40 requires
resolutions put to the vote of a general
meeting to be decided on a poll, for so long
as any AstraZeneca shares are held in a
settlement system operated by Depository
Trust Company (DTC). Article 40 can only be
removed, amended or varied by unanimous
resolution of the members at a general
meeting of the Company.
Objects
The Company’s objects are unrestricted.
Directors
The Board has the authority to manage the
business of the Company, for example,
through powers to allot and repurchase
its shares, subject where required to
shareholder resolutions. Subject to certain
exceptions, Directors do not have power
to vote at Board meetings on matters in
which they have a material interest.
The quorum for meetings of the Board is
a majority of the full Board, of whom at
least four must be Non-Executive Directors.
In the absence of a quorum, the Directors
do not have power to determine
compensation arrangements for themselves
or any member of the Board.
The Board may exercise all the powers of
the Company to borrow money. Variation
of these borrowing powers would require
the passing of a special resolution of the
Company’s shareholders.
All Directors must retire from office at the
Company’s AGM each year and may present
themselves for election or re-election.
Directors are not prohibited, upon reaching
a particular age, from submitting themselves
for election or re-election.
General meetings
AGMs require 21 clear days’ notice to
shareholders. Subject to the Companies
Act 2006, other general meetings require
14 clear days’ notice.
For all general meetings, a quorum of two
shareholders present in person or by proxy,
and entitled to vote on the business
transacted, is required unless each of the
two persons present is a corporate
representative of the same corporation,
or each of the two persons present is
a proxy of the same shareholder.
Shareholders and their duly appointed
proxies and corporate representatives are
entitled to be admitted to general meetings.
Limitations on the rights to own shares
There are no limitations on the rights to
own shares.
Major shareholdings
At 31 December 2025, the following persons had disclosed an interest in the issued Ordinary Share capital of the Company in accordance
with the requirements of rules 5.1.2 or 5.1.5 of the UK Financial Conduct Authority’s (FCA) Disclosure Guidance and Transparency Rules.
Changes in the percentage ownerships disclosed by major shareholders are set out below. Major shareholders do not have different
voting rights.
Number of Ordinary Shares disclosed as a percentage of issued share capital at:
Shareholder
Date of the latest
disclosure to
the Company
1
Number of
Ordinary Shares
disclosed
The date of
the latest
disclosure to
the Company
31 December
2023
31 December
2024
31 December
2025
31 January
2026
BlackRock, Inc.
4 December 2009
100,885,181
6.96
6.51
6.51
6.50
6.50
Investor AB
3 April 2019
51,587,810
3.93
3.33
3.33
3.33
3.33
The Capital Group Companies, Inc.
3 December 2025
77,125,348
4.97
4.12
4.11
4.97
4.97
Wellington Management Group LLP
2
21 July 2020
65,120,892
4.96
4.20
4.20
4.20
4.20
Wellington Management Company LLP
2
21 July 2020
65,118,411
4.96
4.20
4.20
4.20
4.20
1
Since the date of disclosure to the Company, the interest of any person listed above in Ordinary Shares may have increased or decreased. No requirement to notify the Company of
any increase or decrease arises unless the holding passes a notifiable threshold in accordance with rules 5.1.2 or 5.1.5 of the UK FCA’s Disclosure Guidance and Transparency Rules.
2
The Company was notified at the time of the disclosure that Wellington Management Company LLP was a subsidiary of Wellington Management Group LLP and that the shareholding
percentage notified by Wellington Management Company LLP was included within the aggregate shareholding percentage notified by Wellington Management Group LLP.
The Company has not been notified of any other person holding a notifiable interest in the issued Ordinary Share capital of the Company.
No changes to major shareholdings were disclosed to the Company between 31 December 2025 and 31 January 2026.
So far as the Company is aware, it is neither directly nor indirectly owned or controlled by one or more corporations or by any government.
The Company does not know of any arrangements, the operation of which might result in a change in the control of the Company.
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Annual Report & Form 20-F Information 2025
Corporate Governance
Sustainability Statement
Additional Information
Financial Statements
Strategic Report
Directors’ Report
2026 AGM, similar to that passed at the 2025
AGM, to authorise the Company and its
subsidiaries to:
•
Make donations to political parties
or independent election candidates.
•
Make donations to political organisations
other than political parties.
•
Incur political expenditure, up to
an aggregate limit of $250,000.
Corporate political contributions in the US
are permitted in defined circumstances
under the First Amendment of the US
Constitution and are subject to both federal
and state laws and regulations. In 2025,
the Group’s US legal entities made
contributions amounting in aggregate to
$1,104,925 (2024: $1,156,800) to national
political organisations, state-level political
committees, candidate campaign
committees or other entities. Corporate
political contributions were made in
accordance with all applicable US federal
and state laws. We publicly disclose details
of our corporate US political contributions,
which can be found on our website,
www.astrazeneca-us.com.
The annual corporate contributions budget
is reviewed and approved by the US VP,
Corporate Affairs and the President of our
US business to ensure robust governance
and oversight. US citizens or individuals
holding valid green cards exercised decision
making over the contributions and the funds
were not provided or reimbursed by any
non-US legal entity. Such contributions do
not constitute political donations or political
expenditure for the purposes of the
Companies Act 2006 and were made
without any involvement of persons or
entities outside the US.
Significant agreements
There are no significant agreements to
which the Company is a party that take
effect, alter or terminate on a change of
control of the Company following a takeover
bid. There are no persons with whom we
have contractual or other arrangements, who
are deemed by the Directors to be essential
to our business.
Use of financial instruments
The Notes to the Financial Statements,
including Note 28 from page 171, include
further information on our use of financial
instruments.
Insurance and indemnities
The Company maintained directors’ and
officers’ liability insurance cover throughout
2025. The Directors are also able to obtain
independent legal advice at the expense of
the Company, as necessary, in their capacity
as Directors.
Since 2006, the Company has entered into
a deed of indemnity in favour of each Board
member. These deeds of indemnity are still
in force and provide that the Company shall
indemnify the Directors to the fullest extent
permitted by law and the Articles, in respect
of all losses arising out of, or in connection
with, the execution of their powers, duties
and responsibilities as Directors of the
Company or any of its subsidiaries. This
is in line with current market practice and
helps us attract and retain high-quality,
skilled Directors.
Compliance requirements under
UK Listing Rule 6.6.1
The only matter to report is the shareholder
waiver of dividends on page 225.
Directors’ Report
The Directors’ Report, which has been
prepared in accordance with the
requirements of the Companies Act 2006,
comprises the following sections:
•
Chair’s Statement
•
Chief Executive Officer’s Review
•
Therapy Area Review
•
Business Review
•
Risk Overview
•
Financial Review: Financial risk
management
•
Corporate Governance: including the
Corporate Governance Overview,
Corporate Governance Report,
Nomination and Governance Committee
Report, Science Committee Report,
Sustainability Committee Report and
Audit Committee Report
•
Directors’ responsibility statement
•
Sustainability Statement
•
Shareholder information
and has been approved by the Board
and signed on its behalf.
On behalf of the Board
M S Bowden
Company Secretary
10 February 2026
Stakeholder engagement
The discussion on stakeholder engagement
and the impact of these interactions is
contained in Connecting with our stakeholders
from page 74 and throughout the Strategic
Report. This includes engagement with our
employees, suppliers and other stakeholders,
as well as the impact of our operations on
the community and environment.
Information on how we encourage employee
involvement in the Company’s performance
is set out in People and Sustainability from
page 38. Details of some of the employee
share plans are described in the Directors’
Remuneration Report from page 90, and in
Note 29 to the Financial Statements from
page 178. All employees are provided with
information on matters of concern to them
through regular meetings and updates on
the Group’s internal communication platform.
‘Townhall’ meetings and Q&A sessions are
hosted regularly by members of senior
management, including global and targeted
broadcasts. During 2025, these broadcasts
provided updates on the business, including
pipeline developments and strategic
initiatives, as well as the Group’s response
to global issues. In addition, information
about the Group’s quarterly results and
key regulatory matters are shared with
employees. These updates inform
employees of the financial and economic
factors which affect the performance
of the Group.
Political donations
Neither the Company nor its subsidiaries
made any EU or UK political donations or
incurred any EU or UK political expenditure
in 2025 and they do not intend to do so in
the future in respect of which shareholder
authority is required, or for which disclosure
in this Annual Report is required, under the
Companies Act 2006. However, to enable
the Company and its subsidiaries to continue
to support interest groups or lobbying
organisations concerned with the review
of government policy or law reform without
inadvertently breaching the Companies Act
2006, which defines political donations and
other political expenditure in broad terms,
a resolution will be put to shareholders at the
For more information on
dividend distributions and the
AGM, see page 223.
For more information on the
Directors, see Board of
Directors on pages 68 and 69.
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Annual Report & Form 20-F Information 2025
Corporate Governance
Sustainability Statement
Additional Information
Financial Statements
Strategic Report
Directors’ Report
Directors’ Report
continued
US equivalents
Terms used in this Annual Report
US equivalent or brief description
Accruals
Accrued expenses
Called-up share capital
Issued share capital
Earnings
Net income
Employee share schemes
Employee stock benefit plans
Fixed asset investments
Non-current investments
Freehold
Ownership with absolute rights in perpetuity
Loans
Long-term debt
Prepayments
Prepaid expenses
Profit
Income
Share premium account
Additional paid-in capital or paid-in surplus (not distributable)
Short-term investments
Redeemable securities and short-term deposits
Trade payables
Accounts payable
Trade receivables
Accounts receivable
Orphan Drug
– a drug that has been approved for use in a relatively
low-incidence indication (an orphan indication) and has been
rewarded with a period of market exclusivity; the period of exclusivity
and the available orphan indications vary between markets.
OS
– overall survival.
PAAGR
– post Alexion Acquisition Group Review.
Paediatric Exclusivity
– in the US, a six-month period of exclusivity
to market a drug which is awarded by the FDA in return for certain
paediatric clinical studies using that drug. This six-month period
runs from the date of relevant patent expiry. Analogous provisions
are available in certain other territories (such as European
Supplementary Protection Certificate paediatric extensions).
PFS
– progression-free survival. The length of time during and
after the treatment of a disease, such as cancer, that a patient
lives with the disease without it getting worse.
pMDI
– pressurised metered-dose inhaler.
primary care
– general healthcare provided by physicians who
ordinarily have first contact with patients and who may have
continuing care for them.
R&I
– Respiratory & Immunology.
rare disease
– the EU defines a disease or condition as rare if it
affects fewer than 1 in 2,000 people within the general population
and in the US, the Orphan Drug Act defines a rare disease as a
disease or condition that affects less than 200,000 people in
the US.
RoW
– rest of world.
SBTi/s
– Science Based Targets initiative/science-based targets.
SEC
– the US Securities and Exchange Commission, the
governmental agency that regulates the US securities industry
and stock markets.
SET
– Senior Executive Team.
specialty care
– specific healthcare provided by medical
specialists who do not generally have first contact with patients.
SoC
– standard of care. Treatment that is accepted by medical
experts as a proper treatment for a certain type of disease and
that is widely used by healthcare professionals.
TSR
– total shareholder return, being the total return on a share
over a period of time, including dividends reinvested.
V&I
– Vaccines & Immune Therapies.
The following abbreviations and expressions have the meanings
given below when used in this Annual Report:
ADRs/ADSs
– American Depositary Receipts/American
Depositary Shares.
API
– active pharmaceutical ingredient.
Articles
– the Articles of Association of the Company.
biologic(s) or biologic medicine(s)
– a class of drugs that
are produced in living cells.
CER
– constant exchange rates.
Company or Parent Company
– AstraZeneca PLC (formerly
Zeneca Group PLC (Zeneca)).
CVRM
– Cardiovascular, Renal & Metabolism.
DTR
– UK Disclosure Guidance and Transparency Rules.
EFPIA
– European Federation of Pharmaceutical Industries
and Associations.
EMA
– European Medicines Agency.
F-gas
– fluorinated greenhouse gases include: hydrofluorocarbons
(HFCs), perfluorocarbons (PFCs) and sulphur hexafluoride (SF6).
FDA
– the US Food and Drug Administration, which is part of the
US Department of Health and Human Services Agency, which is
the regulatory authority for all pharmaceuticals (including biologics
and vaccines) and medical devices in the US.
FRC
– the UK Financial Reporting Council.
GAAP
– Generally Accepted Accounting Principles.
GIA
– the Group’s Internal Audit function.
Group
– AstraZeneca PLC and its subsidiaries.
GWP
– Global Warming Potential.
IAS
– International Accounting Standards.
IASB
– International Accounting Standards Board.
IFRS
– International Financial Reporting Standards or International
Financial Reporting Standard, as the context requires.
LCM
– significant life-cycle management projects (as determined
by potential revenue generation), or line extensions.
mAb
– monoclonal antibody, a biologic that is specific, meaning
it binds to and modulates one particular antigen.
major market
– US, Europe, Japan and China.
Corporate Governance
Sustainability Statement
Additional Information
Financial Statements
Strategic Report
227
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Annual Report & Form 20-F Information 2025
Glossary
Glossary
•
the risk of failure to maintain supply
of compliant, quality medicines
•
the risk of illegal trade in our
Group’s medicines
•
the risk of reliance on third-party
goods and services
•
the risk of failure in IT or cybersecurity
•
the risk of failure of critical processes
•
the risk of failure to collect and manage
data and AI in line with legal and
regulatory requirements and
strategic objectives
•
the risk of failure to attract, develop,
engage and retain a diverse, talented
and capable workforce
•
the risk of failure to meet our sustainability
targets, regulatory requirements or
stakeholder expectations with respect
to the environment
•
the risk of failure to meet regulatory
and ethical expectations on commercial
practices, including anti-bribery/
anti-corruption, anti-fraud and
scientific exchanges
•
the risk of the safety and efficacy of
marketed medicines being questioned
•
the risk of adverse outcome of litigation
and/or governmental investigations
•
intellectual property-related risks to
the Group’s products
•
the risk of failure to achieve strategic
plans or meet targets or expectations
•
the risk of geopolitical and/or
macroeconomic volatility disrupting
the operation of our global business
•
the risk of failure in internal control,
financial reporting or the occurrence
of fraud
•
the risk of unexpected deterioration
in the Group’s financial position.
Certain of these factors are discussed in
more detail, without limitation, in the Risk
Supplement available on our website,
www.astrazeneca.com/annualreport2025,
and reproduced in AstraZeneca’s Form 20-F
filing for 2025, available on the SEC website
www.sec.gov. Nothing in this Annual Report
should be construed as a profit forecast.
Inclusion of Reported performance,
Core financial measures and constant
exchange rate growth rates
AstraZeneca’s determination of non-GAAP
measures, together with our presentation
of them within our financial information,
may differ from similarly titled non-GAAP
measures of other companies.
Statements of competitive position,
growth rates and sales
In this Annual Report, except as otherwise
stated, market information regarding the
position of our business or products relative
to its or their competition is based upon
published statistical sales data for the
12 months ended 30 September 2025
obtained from IQVIA, a leading supplier
of statistical data to the pharmaceutical
industry. Except as otherwise stated, these
market share and industry data from IQVIA
have been derived by comparing our sales
revenue with competitors’ and total market
sales revenues for that period, and except
as otherwise stated, growth rates are given
at CER. For the purposes of this Annual
Report, unless otherwise stated, references
to the world pharmaceutical market or similar
phrases are to the 63 countries contained
in the IQVIA database, which amounted to
approximately 85% (in value) of the countries
audited by IQVIA.
Information on websites
Information on or accessible through
AstraZeneca websites (including
www.astrazeneca.com and any websites
referenced in this Annual Report) or any
external/third-party websites does not
form part of and is not incorporated into
this Annual Report.
Cautionary statement regarding
forward‑looking statements
The purpose of this Annual Report is to
provide information to the members of the
Company. The Company and its Directors,
employees, agents and advisers do not
accept or assume responsibility for any other
person to whom this Annual Report is shown
or into whose hands it may come and any
such responsibility or liability is expressly
disclaimed. In order, among other things, to
utilise the ‘safe harbour’ provisions of the US
Private Securities Litigation Reform Act of
1995 and the UK Companies Act 2006,
we are providing the following cautionary
statement:
This Annual Report contains certain
forward-looking statements with respect to
the operations, performance and financial
condition of the Group, including, among
other things, statements about expected
revenues, margins, earnings per share or
other financial or other measures. Forward-
looking statements are statements relating
to the future which are based on information
available at the time such statements are
made, including information relating to risks
and uncertainties. Although we believe that
the forward-looking statements in this
Annual Report are based on reasonable
assumptions, the matters discussed in the
forward-looking statements may be
influenced by factors that could cause
actual outcomes and results to be materially
different from those predicted. The
forward-looking statements reflect
knowledge and information available at the
date of the preparation of this Annual Report
and the Company undertakes no obligation
to update these forward-looking statements.
We identify the forward-looking statements
by using the words ‘anticipates’, ‘believes’,
‘expects’, ‘intends’ and similar expressions
in such statements. Important factors that
could cause actual results to differ materially
from those contained in forward-looking
statements, certain of which are beyond
our control, include, among other things:
•
the risk of failure or delay in delivery
of pipeline or launch of new medicines
•
the risk of failure to meet regulatory
or ethical requirements for medicine
development or approval
•
the risk of failures or delays in the
quality or execution of the Group’s
commercial strategies
•
the risk of pricing, affordability, access
and competitive pressures
Corporate Governance
Sustainability Statement
Additional Information
Financial Statements
Strategic Report
228
AstraZeneca
Annual Report & Form 20-F Information 2025
Important information for readers of this Annual Report
Important information for readers of this Annual Report
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Registered office and
corporate headquarters
AstraZeneca PLC
Cambridge Biomedical Campus
Cambridge CB2 0AA
Tel: +44 (0)20 3749 5000
This Annual Report is also available on our website,
www.astrazeneca.com/annualreport2025