AstraZeneca Annual Report and Form 20-F Information 2008

2008 IN BRIEF

• Sales up 3% to $31,601 million.
• Crestor sales up 26% to $3,597 million; Symbicort up 22% to $2,004 million; Seroquel up 9% to $4,452 million; and Arimidex up 4% to $1,857 million. Nexium sales down 2% to $5,200 million.
• Our product portfolio now includes 11 medicines with annual sales of more than $1 billion each.
• Sales in Emerging Markets reached $4,273 million for the full year, up 16%.
• Investment in R&D in line with 2007 at $5.2 billion.
• Core operating profit up 9% to $10,958 million.
• Core operating margin improved to 34.7% of sales on operational efficiencies in all functional areas.
• Core EPS for the full year increased by 8% to $5.10.
• Reported EPS for the full year increased by 2%, reflecting higher intangible asset impairments and a full year of MedImmune amortisation compared with 2007.
• Dividend up 10% to $2.05 for the full year.
• Cash distributions to shareholders totalled $3,349 million (dividends $2,739 million; share re-purchases $610 million).
• Net debt reduced by $1.9 billion on strong cash performance and investment discipline.
• Eight significant regulatory life-cycle management submissions; two product submissions. Phase III pipeline volume remains constant. Phase II pipeline increased by over 50%. Nominated 32 FGLPs and exceeded our target for progressing these into man.
• New initiatives extend the scope of restructuring programme to sustain long-term competitiveness.
• 35 significant business development transactions including extensions of existing agreements.
• Summary Judgment Motion granted to AstraZeneca in the patent infringement actions commenced against two generic drug manufacturers in the US following abbreviated new drug applications relating to Seroquel.
• Settlement of US Nexium patent litigation with enforceability of disputed Nexium patents conceded. Other patent litigation continuing in the US against generic manufacturers following abbreviated new drug applications relating to Nexium.
• New Code of Conduct launched in over 40 languages and all employees trained.

Growth rates expressed above are CER growth rates.

DIVIDEND FOR 2008

ASTRAZENECA IN BRIEF

• Focused on the discovery, development, manufacturing and marketing of prescription pharmaceuticals and biological products for important areas of healthcare: Cardiovascular, Gastrointestinal, Infection, Neuroscience, Oncology, and Respiratory and Inflammation.
• Broad product range, including many world leaders and a number of key products: Arimidex, Crestor, Nexium, Seroquel and Symbicort.
• Active in over 100 countries with a growing presence in important emerging markets including China; corporate office in London, UK; major R&D sites in Sweden, the UK and the US.
• Over 65,000 employees (51% in Europe, 32% in the Americas and 17% in Asia, Africa and Australasia).
• Around 12,000 people in our R&D organisation and 17 principal R&D centres in eight countries.
• 26 manufacturing sites in 18 countries.
• Committed to a responsible approach to business across all activities.