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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
%
Arimidex 1,730 151 71 1,508 338 (11) 1,181 10 15 29 28
Casodex 1,335 74 55 1,206 104 (21) 1,123 6 11 9 7
Zoladex 1,104 39 57 1,008 17 (13) 1,004 4 10 1 –
Iressa 238 (1) 2 237 (30) (6) 273 – – (11) (13)
Faslodex 214 18 10 186 45 1 140 10 15 32 33
Nolvadex 83 (8) 2 89 (22) (3) 114 (9) (7) (19) (22)
Abraxane® 62 44 – 18 18 – – 244 244 – –
Ethyol1 43 43 – – – – – n/m n/m n/m n/m
Other 10 (1) 1 10 – – 10 (10) – – –
Total 4,819 359 198 4,262 470 (53) 3,845 8 13 12 11

1Sales of this MedImmune product are consolidated in AstraZeneca accounts from 1 June 2007. As a result, there are no prior period sales included.

2007 PERFORMANCE

Reported performance

Oncology sales increased by 13% to reach $4,819 million in 2007, compared with $4,262 million in 2006.

Underlying performance

Excluding the effects of exchange, Oncology sales grew by 8%. Arimidex sales reached $1,730 million, up 10%. In the US, sales of Arimidex rose by 13% to $694 million. Total prescriptions for Arimidex increased nearly 5.3% compared with 1.3% growth in the market for hormonal treatments for breast cancer. Arimidex sales in other markets increased by 8% to $1,036 million. Sales for the full year were up 6% in Western Europe and increased 9% in Japan.

Casodex sales increased by 6% to $1,335 million. Sales in the US for the full year were up 1% to $298 million. Sales in other markets, which account for more than 75% of product sales, were up 8%, on 6% growth in Western Europe and 13% sales growth in Japan.

Iressa sales were unchanged for the full year. Sales in Japan increased 4% for the year; sales in China were up 24%.

Faslodex sales increased 10% to $214 million for the full year, on growth of 3% in the US and 18% sales growth in other markets.

2006 PERFORMANCE

Reported performance

Oncology sales increased by 11% to $4,262 million in 2006 principally due to the continued strong Arimidex performance.

Underlying performance

Excluding the effects of exchange, Oncology sales grew by 12%.

In the US, sales of Arimidex were up 29% to $614 million. Total prescriptions increased by 21%. Arimidex share of total prescriptions for hormonal treatments for breast cancer was 37.5% in December, up 2.7 percentage points during the year. In other markets, Arimidex sales grew by 29% due to an increase in sales in Europe (up 30%) and Asia Pacific (up 27%) on strong volumes.

Casodex sales increased by 9% to $1,206 million. In the US, sales were up 23% to $295 million. Sales in other markets were up 5%, with sales in Japan up 10% to $286 million.

Iressa sales in markets outside the US increased by 10%. Sales in the Asia Pacific region were up 15% to $207 million.

Worldwide sales of Faslodex were up 32% to $186 million, largely due to the 74% increase in Europe. Sales in the US were up 12%.

Zoladex sales exceeded $1 billion for the second year in a row with declines in the US offset by growth elsewhere.

We have recorded alliance revenue of $18 million from our co-promotion arrangements with regard to Abraxane®.

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