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Directors' Report:
Our performance

Financial performance

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2007 2006 2005 2007 compared to
2006
2006 compared to
2005
Sales
$m
Growth
underlying
$m
Growth
due to
exchange
effects
$m
Sales
$m
Growth
underlying
$m
Growth
due to
exchange
effects
$m
Sales
$m
Growth
underlying
%
Growth
reported
%
Growth
underlying
%
Growth
reported
%
Seroquel 4,027 526 85 3,416 655 - 2,761 15 18 24 24
Zomig 434 18 18 398 47 (1) 352 5 9 13 13
Diprivan 263 (53) 12 304 (62) (3) 369 (17) (13) (17) (18)
Local anaesthetics 557 (6) 34 529 24 (6) 511 (1) 5 5 4
Other 59 (1) 3 57 (8) (1) 66 (2) 4 (12) (14)
Total 5,340 484 152 4,704 656 (11) 4,059 10 14 16 16

2007 PERFORMANCE

Reported performance

Sales in the Neuroscience therapy area rose by 14% in 2007, up to $5,340 million from $4,704 million in 2006. Seroquel was the principal driver of performance, recording an 18% increase in sales.

Underlying performance

On a constant exchange rate basis, Neuroscience sales grew by 10%. Annual Seroquel sales exceeded $4 billion for the first time in 2007, with full year sales of $4,027 million, up 15% over last year. In the US, Seroquel sales increased by 15% to $2,863 million. Total prescriptions increased by 10% for the year, more than twice the market rate. Market share of total prescriptions in the US antipsychotic market increased to 31.8% in December 2007, up 1.3 percentage points in the last 12 months, with a third of the increase attributable to Seroquel XR in the five months since launch in August. Seroquel sales in other markets were up 16% for the full year as a result of market share gain in most markets.

Zomig sales for the full year increased by 5% in the US (to $177 million) and 4% in other markets, totalling $434 million.

2006 PERFORMANCE

Reported performance

Neuroscience sales grew by 16% to $4,704 million in 2006 from $4,059 million in 2005 with growth in all geographic areas, driven chiefly by Seroquel.

Underlying performance

After excluding exchange effects of $11 million, underlying growth was 16%.

Seroquel sales reached $3,416 million (up 24%). In the US, Seroquel sales were up 24% to $2,486 million. Total prescriptions increased by 12%, well ahead of the market. The Seroquel share of total prescriptions in the US anti-psychotic market increased to 30.2% in December, up 1.7 percentage points over last year. In other markets, sales were up 23%, on good growth in Europe (up 25% to $619 million) and in Asia Pacific (up 15% to $149 million).

Zomig sales increased by 13% to $398 million. Zomig sales comparisons in the US for the full year as compared with 2005 are affected by the resumption of full responsibility from MedPointe, Inc. for US commercialisation in April 2005. Sales for Zomig in the US were up 39%, although total prescriptions declined by 6%. Sales of Zomig in other markets were unchanged.

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