1st Quarter Results (1 of 2)

AstraZeneca PLC
28 April 2005



AstraZeneca PLC
First Quarter Results 2005

'Record quarterly profits, with first quarter Earnings per Share up 33 percent.
Sales up 9 percent.'

Financial Highlights (Financial statements prepared in accordance with
International Financial Reporting Standards)

  Group                        1st Quarter     1st Quarter      Actual      CER
                                      2005            2004           %        %
                                        $m              $m

  Sales                              5,743           5,074         +13       +9

  Operating Profit                   1,453           1,052         +38      +34

  Profit before Tax                  1,486           1,084         +37      +34

  Earnings per Share                 $0.63           $0.47         +34      +33

All narrative in this section refers to growth rates at constant exchange rates
(CER)


•   First quarter sales were $5,743 million, up 9 percent. Underlying sales of key growth products up 33 percent.

•   Progress on productivity continues; combined R&D and SG&A expenditure down 4 percent.

•   Operating profit in the first quarter increased 34 percent to $1,453 million.

•   Free cashflow of $1,322 million in the quarter; share repurchases in the first quarter totalled $481 million.

•   NexiumTM sales were $1,055 million in the first quarter, up 11 percent.  Intravenous formulation approved in
    the US on 31 March 2005.

•   CrestorTM sales in the first quarter were $273 million, and have reached $1,052 million in the last 12 months.

•   SeroquelTM sales were $633 million in the first quarter, up 39 percent.

•   ArimidexTM sales were $256 million in the first quarter, up 49 percent.



Sir Tom McKillop, Chief Executive, said:  'These record profits derive from a
strong sales performance, especially for our key growth products, and from
ongoing productivity improvements in R&D and SG&A.  This excellent start to the
year has set us on track to deliver our financial targets for the year.'

London, 28 April 2005


Media Enquiries:              Steve Brown/Edel McCaffrey (London)          [phone]/5034
                              Staffan Ternby (Sodertalje)                (8) 553 26107
                              Rachel Bloom-Baglin (Wilmington)             [phone]

Analyst/Investor Enquiries:   Mina Blair (London)                          [phone]
                              Jonathan Hunt (London)                       [phone]
                              Staffan Ternby (Sodertalje)                (8) 553 26107
                              Ed Seage/Jorgen Winroth (US)                 [phone]/[phone]


Business Highlights All narrative in this section refers to growth rates at
constant exchange rates (CER) unless otherwise indicated


Sales in the first quarter increased 9 percent at CER, or 13 percent on an as
reported basis (including positive exchange rate benefit of 4 percent).  Sales
outside the US were up 9 percent.  Sales in the US in the first quarter were up
10 percent.  Adjusted for inventory movements (principally wholesaler
stockbuilding in the first quarter 2004) estimated underlying sales growth in
the US was 17 percent.



Good management of expenditure in R&D and SG&A continues to benefit operating
results.  In aggregate, these expenses were 4 percent lower at CER than first
quarter 2004 (and broadly unchanged as reported).  Operating profit was up 34
percent.  Earnings per share in the first quarter were $0.63 versus $0.47 in
2004, an increase of 33 percent.



NexiumTM sales were $1,055 million in the first quarter, up 11 percent.
Dispensed tablet volume in the US was up 15 percent, whereas reported sales
growth was up 3 percent as a consequence of wholesaler stockbuilding in the
first quarter 2004. NexiumTM sales outside the US were up 30 percent.



CrestorTM sales in the first quarter were $273 million, more than double the
sales in the first quarter last year.  In March, CrestorTM share of new
prescriptions in the US statin market was 6.0 percent, up from 5.8 percent in
January 2005.  On 14 March, based on a thorough analysis of clinical trial
safety data and post-marketing data, the US Food and Drug Administration (FDA)
formally denied Public Citizen's Health Research Group's (HRG) petition to
remove CrestorTM from the market, and as part of their formal response,
reaffirmed that CrestorTM is safe and effective when used according to the
prescribing information.



Sales of IressaTM were $81 million in the first quarter.  Sales in Asia Pacific
were up 18 percent which includes sales made since launch in China in February.
Sales in Japan were down 8 percent.   Sales declined by 41 percent in the US
since the announcement of the ISEL trial results, where promotion of IressaTM
remains voluntarily suspended whilst the FDA completes its assessment of the
implications of the full ISEL trial data set.



Good sales growth in the first quarter was achieved for SymbicortTM (up 23
percent), CasodexTM (up 16 percent), and SeroquelTM (up 39 percent).  ArimidexTM
sales were up 49 percent to $256 million.  In the US, ArimidexTM new
prescription share of hormonal treatments for breast cancer reached 31.4 percent
in March, a market-leading 1.3 percentage point increase since December 2004.




Future Prospects



The Company continues to anticipate full year earnings per share in the range of
$2.35 to $2.50.  In contrast to the quarterly progression of earnings last year,
the growth rate in earnings per share in 2005 is anticipated to be stronger in
the first half than in the second half of the year.




Disclosure Notice:  The preceding forward-looking statements relating to
expectations for earnings and business prospects for AstraZeneca PLC are subject
to risks and uncertainties, which may cause results to differ materially from
those set forth in the forward-looking statements.  These include, but are not
limited to: the rate of growth in sales of generic omeprazole in the US,
continued growth in currently marketed products (in particular CrestorTM,
NexiumTM, SeroquelTM, SymbicortTM, ArimidexTM and CasodexTM), the growth in
costs and expenses, interest rate movements, exchange rate fluctuations and the
tax rate.  For further details on these and other risks and uncertainties, see
AstraZeneca PLC's Securities and Exchange Commission filings, including the 2004
Annual Report on Form 20-F.


Sales

All narrative in this section refers to growth rates at constant exchange rates
(CER) unless otherwise indicated

Gastrointestinal
                                               First Quarter                    CER %
                                                 2005          2004

NexiumTM                                        1,055           935               +11
LosecTM/ PrilosecTM                               427           540               -25
Total                                           1,499         1,496                -3


•   In the US, dispensed tablet volume for NexiumTM increased by 15 percent in the first quarter, nearly double
    the rate of growth for the prescription PPI market.  Market share of total prescriptions in March reached 27.5
    percent, up nearly 2 points over March 2004.  Reported sales for NexiumTM in the US were up just 3 percent as
    a consequence of wholesaler stocking which occurred in the first quarter last year.  Although pricing had
    little impact on sales growth this quarter, the Company expects that volume growth for the full year will be
    partially offset by lower realised prices.

•   Sales of NexiumTM in markets outside the US were up 30 percent in the first quarter.

•   PrilosecTM sales in the US were down 34 percent in the first quarter.  Sales of LosecTM outside the US were
    down 22 percent, although sales in Japan continue to grow (up 22 percent).



Cardiovascular
                                               First Quarter                    CER %
                                                 2005          2004

SelokenTM / Toprol-XLTM                           408           333               +21
AtacandTM                                         235           209                +7
PlendilTM                                          93           111               -19
ZestrilTM                                          87           105               -22
CrestorTM                                         273           129              +106
Total                                           1,257         1,055               +15


•   Sales of SelokenTM/Toprol-XLTM were up 21 percent in the first quarter, chiefly on the 24 percent increase in
    sales of Toprol-XLTM in the US.

•   Sales for AtacandTM were up 7 percent in the first quarter.  Sales outside the US were up 19 percent.  Total
    prescriptions for AtacandTM in the US were down 9 percent, but reported sales were down 18 percent as a result
    of wholesaler stocking in the first quarter 2004.

•   On 23 February, AtacandTM became the first angiotensin receptor blocker in the US to receive regulatory
    approval for heart failure, based on data that showed reductions in both cardiovascular mortality and
    hospitalisations in patients with heart failure.

•   CrestorTM sales in the first quarter were $273 million, up 106 percent versus the first quarter last year.
    Sales in the last 12 months reached $1,052 million.

•   In markets outside the US, CrestorTM sales were $119 million in the quarter.  Volume share of the statin
    market is now at double-digit levels in Canada (12.2 percent), Italy (11.8 percent), and the Netherlands (10.4
    percent).  Good progress continues in France, with market share reaching 5.0 percent in the latest month.
    Market share in the UK is 3.5 percent, down slightly from that reported at the year end.



•   In the US, CrestorTM sales in the first quarter were $154 million.  For the month of March, CrestorTM share of
    new prescriptions in the US statin market was 6.0 percent, up from 5.8 percent in January. In the week ending
    15 April, CrestorTM share of new prescriptions was 6.2 percent.  Market share in the dynamic segment (new and
    switch patients) was 8.3 percent.

•   On 14 March, based on a thorough analysis of clinical trial safety data and post-marketing data, which
    involved more than 15 million prescriptions and 4 million patients, the US Food and Drug Administration
    formally denied Public Citizen's Health Research Group's (HRG) petition to remove CrestorTM from the market.

•   The launch of CrestorTM in Japan, announced on 27 April, will be followed by implementation of a programme of
    Post-Marketing Surveillance studies at specific medical institutions.  The programme will take approximately
    18 to 24 months to complete.  Significant sales of CrestorTM in Japan are not anticipated before completion of
    an interim report in late 2006 which will determine the subsequent full-scale launch schedule.



Respiratory and Inflammation
                                               First Quarter                    CER %
                                                 2005          2004

SymbicortTM                                       247           188               +23
PulmicortTM                                       314           282                +8
RhinocortTM                                        92            81               +13
AccolateTM                                         28            30                -7
OxisTM                                             23            25               -16
Total                                             746           648               +11


•   Sales of SymbicortTM in the first quarter were up 23 percent to $247 million.  In February, SymbicortTM market
    share in the fast growing combination products segment of the asthma and COPD markets was up more than 2
    points versus the same month last year.

•   On 9 March, the Company announced that the European Patent Office has ruled that the European combination
    patent for SymbicortTM is still valid, despite a challenge from several generic manufacturers.

•   PulmicortTM sales were up 8 percent, as sales increased by 11 percent in the US, and increased by 5 percent
    elsewhere.

•   Sales of RhinocortTM were up 13 percent.  Sales growth in the US (up 20 percent) was ahead of the prescription
    trend (down 4 percent) as a result of wholesaler destocking in the first quarter 2004.



Oncology
                                               First Quarter                    CER %
                                                 2005          2004

CasodexTM                                         277           229               +16
ZoladexTM                                         231           213                +3
ArimidexTM                                        256           166               +49
IressaTM                                           81            93               -15
FaslodexTM                                         29            26                +8
NolvadexTM                                         28            31               -13
Total                                             905           762               +14


•   CasodexTM sales were up 16 percent in the first quarter, fuelled by an 18 percent growth in markets outside
    the US, including a strong performance in Japan (up 21 percent).  Sales in the US were up 11 percent in the
    quarter, ahead of estimated underlying sales growth of around 4 percent.

•   ArimidexTM sales increased by 49 percent in the first quarter, with strong growth recorded in the US (up 63
    percent), Europe (up 42 percent) and Japan (up 38 percent).  ArimidexTM is the only aromatase inhibitor
    indicated for primary adjuvant treatment of early breast cancer.

•   In the US, ArimidexTM new prescription market share for hormonal treatments for breast cancer reached 31.4
    percent in March, a market-leading 1.3 percentage point increase versus December 2004.

•   Sales for IressaTM in the first quarter were $81 million, down 15 percent.  Sales in Asia Pacific were up 18
    percent, which includes sales since launch in China in February.  Sales in Japan were $26 million, 8 percent
    below the first quarter last year.  During the first quarter, IressaTM was reviewed by an Expert Committee
    advising the Japanese Ministry of Health, Labour and Welfare, who recommended no change to the indications for
    use in Japan, and recommended that prescribing information be updated to make reference to the IressaTM
    -specific treatment guidelines issued by the Japanese Lung Cancer Society.

•   IressaTM sales in the US declined by 41 percent to $30 million in the first quarter.  It is believed that
    these sales largely represent prescriptions dispensed to previously treated patients who, in consultation with
    their physician, wish to continue treatment with IressaTM.  In the US, promotion of IressaTM remains under
    voluntary suspension whilst discussions with the FDA continue.  In March, new prescriptions for IressaTM in
    the US are nearly 70 percent below the level in November 2004.



Neuroscience
                                               First Quarter                    CER %
                                                 2005          2004

SeroquelTM                                        633           448               +39
ZomigTM                                            68            95               -32
DiprivanTM                                        107           122               -14
Local anaesthetics                                127           130                -7
Others                                             17            17                -6
Total                                             952           812               +14


•   SeroquelTM sales in the first quarter reached $633 million, up 39 percent, on good growth in the US (up 35
    percent), Europe (up 56 percent), Canada (up 35 percent), and Asia Pacific (up 20 percent).

•   In the US, the 35 percent growth in SeroquelTM sales was somewhat ahead of estimated underlying sales growth
    of around 28 percent as wholesalers edged up inventories toward the upper end of the target range.  In March,
    new prescription market share in the US was 28.6 percent, up a full percentage point versus December 2004 and
    2.8 points clear of its closest competitor.

•   The Company recently received a request from the FDA that the product labelling for all atypical
    antipsychotics, including SeroquelTM, be updated to include a black-box warning noting an increased risk of
    mortality in elderly patients with dementia-related psychosis taking these drugs, compared to patients taking
    placebo.  The proposed warning also notes that these drugs are not approved for treatment of elderly patients
    with dementia-related psychosis.  The Company is reviewing the FDA request.

•   Sales of ZomigTM in markets outside the US were up 12 percent in the first quarter.

•   In the US, supply sales of ZomigTM to Medpointe Inc. were only $9 million (down 80 percent) in anticipation of
    the end of the partnership arrangement on 31 March.  Effective 1 April 2005, AstraZeneca assumed full
    responsibility for the US commercialization of ZomigTM.


Geographic Sales
                                          First Quarter                      CER %
                                            2005           2004

US                                         2,500          2,279                +10
Europe                                     2,165          1,875                 +8
Japan                                        337            290                +12
RoW                                          741            630                +11


•   Underlying sales growth in the US in the first quarter was estimated to be 17 percent when adjusted for the
    wholesaler stocking that occurred in the first quarter 2004.  The key growth drivers in the quarter were
    NexiumTM, CrestorTM, SeroquelTM, Toprol-XLTM and ArimidexTM.

•   Sales growth in Europe was driven by NexiumTM (up 31 percent), oncology products (up 22 percent), SeroquelTM
    (up 56 percent), SymbicortTM (up 23 percent) and CrestorTM (up 115 percent).

•   First quarter sales in Japan reflect a strong performance for oncology products (up 14 percent) and LosecTM
    (up 22 percent).



Financial Review

All narrative in this section refers to growth rates at constant exchange rates
(CER) unless otherwise indicated



Operating Results



Reported sales increased by 13 percent and operating profit by 38 percent. At
constant exchange rates, sales increased by 9 percent and operating profit by 34
percent.



In the US, sales in the quarter were unaffected by wholesaler inventory
movements, as inventory levels were near target levels specified in the
Inventory Management Agreements.  Sales in the first quarter 2004, however, did
benefit from inventory movements.  Adjusting for these, underlying US sales
growth is estimated at 17 percent, compared with 10 percent reported growth.
European sales benefited by an estimated $50 million due to accelerated
deliveries at the end of the quarter, ahead of a brief shut down to allow a
system upgrade.



The weakness of the US dollar benefited EPS by around 1 cent.  In comparison to
quarter one last year, the dollar weakened against the euro (5 percent),
benefiting sales, and also against the Swedish krona (6 percent) and sterling (3
percent), increasing costs.  Should the exchange rates stay at current levels
for the remainder of the year, no further benefits are expected to accrue.



Reported operating margin increased by 4.6 percentage points from 20.7 percent
to 25.3 percent.  Currency depressed operating margin by 0.1 percentage points,
implying an underlying margin improvement of 4.7 percentage points.



Gross margin decreased by 1.8 percentage points to 75.4 percent of sales.
Payments to Merck at 4.5 percent of sales were 0.5 percentage points lower than
first quarter last year. Currency benefited gross margin by 0.2 percentage
points which, combined with Merck, implies an underlying decline in margin of
2.5 percentage points. The resulting underlying decline in gross margin is
attributable to IFRS fair value adjustments of foreign exchange contracts and
termination of the Medpointe ZomigTM distribution agreement in the US.



In aggregate, R&D and SG&A expenses of $2,872 million decreased by 4 percent
over last year due to continued disciplined management of expenditure and some
phasing to the benefit of the first quarter.  In comparison to the first quarter
last year, R&D and SG&A expenditure decreased by 3 and 4 percent respectively,
and combined added 6.7 percentage points to operating margin.



Fair value adjustments arising from financial instruments amounted to a $44
million charge in the quarter, of which $23 million was charged to cost of
sales, $22 million was charged to R&D, with a $1 million benefit to interest
income.



Interest and Dividend Income

Net interest and dividend income for the quarter was $33 million, compared with
$32 million for the same period last year. This includes net interest income of
$5 million arising from employee benefit fund assets and liabilities as required
by IAS 19, 'Employee Benefits'.



Taxation

The tax rate for the quarter is 29.8 percent compared to 26.3 percent for the
first quarter of 2004. The increase is attributable to a different geographical
mix of profits and the impact of IFRS.  For the full year the tax rate is
anticipated to be around 29 percent.

Cash Flow

Cash generated from operating activities in the quarter was $1.5 billion, about
$500 million higher than in the corresponding quarter of 2004.  Higher trading
profits and lower working capital outflows were the main drivers of this
improvement, offset by a slight increase in tax paid.





Cash outflows from investing activities of $29 million in the first quarter
compare with $555 million outflows in the equivalent period in 2004.  Net
capital expenditure, including fixed asset investments, fell by $73 million to
$226 million. However, the change was primarily as a result of short term
management of funds on deposit - inflows in the current quarter of $158 million
contrasted with outflows of $265 million in the first quarter of 2004.



Free cash flow (which represents cash flows before returns to shareholders and
financing and which therefore excludes the effects of short term management of
funds) for the period was $1,322 million compared to $721 million in the first
quarter of 2004.  After accounting for net issues and repurchases of shares of
$477 million, the $1,079 million dividend payment to shareholders and foreign
exchange effects, there was a $88 million decrease in cash and cash equivalents.



Cash and cash equivalents at 31 March 2005 amounted to $3,839 million compared
to $742 million at 31 March 2004.  The apparent increase reflects a movement of
short term deposits into cash equivalents in the latter part of 2004.



Share Repurchase Programme

During the quarter 11.95 million shares were repurchased for cancellation at a
total cost of $481 million.



The total number of shares in issue at 31 March 2005 was 1,633 million.



Calendar

28 April            Annual General Meeting

28 July             Announcement of second quarter and half year results

27 October          Announcement of third quarter and nine months results


Sir Tom McKillop
Chief Executive


                      This information is provided by RNS
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