1st Quarter Results - part 1

AstraZeneca PLC
29 April 2004



AstraZeneca PLC
First Quarter Results 2004

'First quarter sales exceed $5 billion.  Financial targets for the year on
track.'

Financial Highlights

     Group                      1st Quarter   1st Quarter     Actual     CER
                                       2004          2003          %       %
                                         $m            $m

     Sales                            5,074         4,735         +7      -1

     Operating Profit                 1,079         1,272        -15     -20

     Profit before Tax                1,108         1,293        -14     -20

     Earnings per Share               $0.47         $0.54        -13     -19

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

•   Sales in the first quarter were over $5 billion, a record quarter for
    the Company.

•   As expected, significant wholesaler stocking in the US in the first
    quarter last year and the residual effects of patent expirations affected 
    the reported sales growth rates versus first quarter 2003.

•   Adjusted for wholesaler stock movements, estimated sales increase for
    key growth products was 34 percent.

•   Operating profit was down 20 percent, reflecting investments in R&D
    and SG&A that were maintained at levels similar to the fourth quarter 2003.

•   CrestorTM sales reached $129 million in the first quarter.  In the
    week ending 16 April CrestorTM share of new prescriptions in the US statin
    market reached 6.2 percent.

•   During the first quarter, SeroquelTM new prescription market share in
    the US market surpassed that for olanzapine, and now ranks second in the
    atypical antipsychotic market.

•   NexiumTM sales were $935 million in the first quarter.  Sales outside
    the US increased by 36 percent.  Total prescriptions in the US increased by 
    19 percent.

•   SymbicortTM sales increased by 31 percent to $188 million.

•   Oncology products performed strongly, up 19 percent.  IressaTM sales
    reached $93 million in the quarter.  ArimidexTM sales increased by 62 
    percent.

FaslodexTM received regulatory approval in the European Union for the treatment
of advanced breast cancer.


Sir Tom McKillop, Chief Executive, said:  'Our growth strategy is on track and
we are set to achieve our financial targets for the year.  Strong demand for
CrestorTM, NexiumTM, SeroquelTM, SymbicortTM, IressaTM and ArimidexTM
contributed to a record sales performance in the quarter, with demand for key
growth products up 34 percent.  Operating profit, however, was down compared to
a strong first quarter 2003, which benefited from wholesaler stocking, and
following sustained investment in research and development and in the launch of
new products.'

London, 29 April 2004


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-Robinson (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 by 7 percent on a reported basis, including
a positive exchange benefit of 8 percent.  Sales outside the US were up 6
percent.  In the US sales were down 8 percent against the first quarter 2003,
which had included $400 million of speculative purchases by wholesalers.
Excluding inventory movements, total demand in the US was estimated to increase
by 6 percent, and global sales of key growth products by around 34 percent.


Expenditures in R&D and SG&A were $2,849 million in the quarter, below the level
reached in the fourth quarter 2003, but 13 percent ahead of first quarter 2003.
Maintaining this level of investment in product launches and research, set
against the 2003 quarterly sales phasing, resulted in a 20 percent decline in
operating profit in the quarter (down 15 percent on a reported basis).  Earnings
per share in the first quarter were $0.47 versus $0.54 in 2003.


NexiumTM sales were $935 million in the first quarter, up 7 percent.  Sales
outside the US increased by 36 percent.  Total prescriptions in the US increased
by 19 percent in the quarter, well ahead of the PPI market growth.


CrestorTM sales were $129 million in the first quarter, including $72 million in
the US.  In the week ending 16 April CrestorTM share of new prescriptions in the
US statin market was 6.2 percent.  Recent CrestorTM launches include France on 8
March and Italy on 5 April.


Sales of oncology products increased 19 percent in the first quarter to $762
million.  ArimidexTM sales were up 62 percent on continuing growth in the
treatment of early breast cancer.  IressaTM sales were $93 million, with sales
in Japan up 50 percent over first quarter 2003.


Respiratory product sales were $648 million.  SymbicortTM sales were up 31
percent.  Prescriptions for PulmicortTM RespulesTM in the US increased by 22
percent.


SeroquelTM sales were $448 million, down 2 percent in the quarter affected by
wholesaler stock movements in the US in the first quarter 2003.  Prescriptions
in the US grew by 36 percent in the quarter.  SeroquelTM now ranks second in the
US antipsychotic market in new prescription share, having recently overtaken
olanzapine.  SeroquelTM sales outside the US increased by 14 percent.


In December, regulatory submissions were made for ExantaTM in Europe and the US
for the first key chronic indications, including the prevention of stroke
associated with atrial fibrillation, and are now being reviewed by regulatory
authorities.


Future Prospects

The Company continues to anticipate earnings per share in the range of $2.00 to
$2.15 per share.  More than half of the year's profits and nearly all of the
growth in earnings per share versus 2003 should occur in the second half of the
year, influenced by three factors.  First, the remaining impact of patent
expiries will diminish over the course of the year.  Second, the implementation
of inventory management agreements in the US should align reported sales more
closely with prescription trends, although reported quarterly sales comparisons
will continue to be influenced by 2003 patterns.  Finally, the step up in
investments in R&D and SG&A occurred in the second half of 2003, so the rate of
growth in these expenses will attenuate as the year progresses.  As previously
communicated, this outcome is sensitive to exchange rate fluctuations and the
sales performance attained for NexiumTM, CrestorTM and SeroquelTM.


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 IressaTM), the successful
registration and launch of ExantaTM, 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 2003 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 %
                                                 2004          2003

NexiumTM                                          935           835           +7
LosecTM/ PrilosecTM                               540           692          -32
Total                                           1,496         1,545          -10


• NexiumTM sales in markets outside the US in the first quarter were up 36
  percent.  Sales in Europe were up 34 percent, particularly in France (up 50
  percent).

• Total prescriptions for NexiumTM in the US increased by 19 percent in
  the first quarter, well above the 10 percent growth in the non-generic segment
  of the PPI market.  Market share of total prescriptions reached a new high in
  March, at 25.6 percent.  There was a small amount of wholesaler stocking that
  occurred this quarter, but well below the levels in the first quarter 2003.  
  As a result, sales of NexiumTM in the US on a reported basis were virtually
  unchanged.

• PrilosecTM sales in the US declined by 68 percent on continued loss of
  market share to generic omeprazole products together with the decline in
  omeprazole prescriptions resulting from the growth in PrilosecTM OTC.

• Sales of LosecTM outside the US were down 6 percent, as declines in
  Europe were partially offset by growth in Asia Pacific.


Cardiovascular
                                               First Quarter               CER %
                                                 2004          2003

SelokenTM / Toprol-XLTM                           333           368          -13
AtacandTM                                         209           206           -9
PlendilTM                                         111           110           -6
ZestrilTM                                         105           108          -16
CrestorTM                                         129             3          n/m
Total                                           1,055           969           +1



• Sales of SelokenTM/Toprol-XLTM declined by 13 percent in the first
  quarter, as US sales comparisons for Toprol-XLTM (down 17 percent) reflected
  significant wholesaler stocking in the first quarter 2003.  In the first
  quarter, prescriptions for Toprol-XLTM in the US grew by 21 percent versus 
  last year, well ahead of the 10 percent growth in the beta-blocker market.

• AtacandTM sales were up 15 percent outside the US.  AtacandTM
  prescriptions in the highly competitive US market for angiotensin receptor
  blockers were broadly unchanged.  The reported sales decline of 33 percent in
  the US represents wholesaler stock movements in the first quarter 2003 
  partially offset by some stocking in the first quarter this year.

• Sales of CrestorTM reached $129 million in the first quarter.  Sales in
  the US grew to $72 million as ex-factory sales begin to track prescription
  demand, which grew to over 1 million prescriptions dispensed in the first
  quarter 2004.

• In the US market for statin products, CrestorTM market share of new
  prescriptions was 6.2 percent in the week ending 16 April.  Share of new and
  switched patients ('dynamic share') was even higher, at 16.3 percent.

• CrestorTM market share of total prescriptions has increased to 8.9
  percent in Canada, 8.8 percent in the Netherlands, and 3.0 percent in the UK.
  CrestorTM was recently launched in France on 8 March and in Italy on 5 April.

• Since launch the Company estimates that 4 million prescriptions have
  been dispensed for CrestorTM.  An extensive clinical trials database and
  detailed post-marketing surveillance confirms CrestorTM has a safety profile
  comparable to other marketed statins.


Respiratory and Inflammation
                                               First Quarter               CER %
                                                 2004          2003

SymbicortTM                                       188           122          +31
PulmicortTM                                       282           251           +5
RhinocortTM                                        81            90          -13
AccolateTM                                         30            31           -6
OxisTM                                             25            31          -32
Total                                             648           563           +4


• SymbicortTM sales in the first quarter increased by 31 percent.
  Continued expansion of the market for fixed combination products in general, 
  as well as the launch of new dosage strengths and the COPD indication for 
  Symbicort TM, are factors driving the good sales performance.

• Worldwide sales of PulmicortTM were up 5 percent, chiefly on the growth
  of  PulmicortTM RespulesTM  in the US market.  In the US, total prescriptions
  for PulmicortTM RespulesTM were up 22 percent versus the first quarter 2003.

• RhinocortTM Aqua prescriptions in the US increased by 9 percent in the
  first quarter, with market share of total prescriptions slightly ahead of first
  quarter last year.  Some destocking in 2004 compared with stock building in the
  first quarter 2003 contributed to the 18 percent decline in reported sales in
  the US.


Oncology

                                               First Quarter               CER %
                                                 2004          2003

CasodexTM                                         229           189           +9
ZoladexTM                                         213           193           -1
ArimidexTM                                        166            93          +62
IressaTM                                           93            19          n/m
FaslodexTM                                         26            22          +18
NolvadexTM                                         31            61          -56
Total                                             762           581          +19


• CasodexTM prescriptions in the US were broadly unchanged, however
  reported sales were down 7 percent on wholesaler stocking in the first quarter
  2003.  Outside the US sales were up 16 percent, including a 30 percent 
  increase in Japan.

• ArimidexTM sales were up 62 percent in the first quarter on increasing
  usage in early breast cancer.  Sales in the US increased 88 percent versus the
  first quarter 2003, which was depressed by wholesaler destocking.  ArimidexTM
  prescriptions in the US grew 45 percent, and ArimidexTM market share for
  hormonal treatments for breast cancer was 21.3 percent in March, an increase 
  of 4.8 points since March last year.  ArimidexTM sales in Europe were up 49
  percent, and in Japan were 46 percent ahead of the first quarter last year.

• IressaTM sales in Japan were $27 million in the quarter, up 50 percent
  versus the first quarter 2003.  US sales of $51 million included some 
  wholesaler stocking.  Retail prescriptions for IressaTM in the first quarter 
  were just over twenty-two thousand, some 8 percent higher than the fourth 
  quarter 2003.

• FaslodexTM sales increased by 9 percent in the US.  On 12 March the
  Company announced that FaslodexTM received European marketing approval for the
  treatment of advanced breast cancer.

Neuroscience

                                               First Quarter               CER %
                                                 2004          2003

SeroquelTM                                        448           444           -2
ZomigTM                                            95           108          -18
DiprivanTM                                        122           136          -15
Local anaesthetics                                130           101          +14
Others                                             17            18          -17
Total                                             812           807           -5


• Prescription growth for SeroquelTM in the US market remains strong, up a
  further 36 percent versus the first quarter 2003.  SeroquelTM is the fastest
  growing product among the three leading brands in the atypical antipsychotic
  market, and during the first quarter SeroquelTM overtook olanzapine to become
  the number two product in the market based on monthly new prescriptions, with
  a 24.5 percent market share.

• Reported sales in the US for SeroquelTM were down 6 percent, a function
  of significant wholesaler stocking in the first quarter 2003.

• SeroquelTM sales outside the US were up 14 percent, with 50 percent
  growth reported in Canada and in Germany.  Sales in Italy were up 25 percent.

• ZomigTM sales in Europe increased by 25 percent.  US sales were down 33
  percent, reflecting the change in distribution for the US market, where the
  product is now sold to Medpointe (the distributor responsible for sales and
  marketing for the US market) at contract prices below the AstraZeneca 
  ex-factory price last year.


Geographic Sales

                                          First Quarter                    CER %
                                            2004           2003

US                                         2,279          2,470               -8
Europe                                     1,875          1,555               +2
Japan                                        290            243               +6
RoW                                          630            467              +21


• In the US reported sales were down 8 percent due to wholesaler stocking
  in the first quarter 2003.  Underlying demand grew by an estimated 6 percent
  overall, and by 27 percent excluding the three products affected by generic
  competition (PrilosecTM, NolvadexTM and ZestrilTM).

• Sales in Europe were up 2 percent, with growth in NexiumTM (up 34
  percent), SymbicortTM (up 25 percent), ArimidexTM (up 49 percent) and 
  CrestorTM offsetting declining prices throughout the region.

• Sales in Japan were up 6 percent on good growth in oncology products (up
  26 percent) and LosecTM (up 18 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 7 percent and operating profit fell by 15 percent.
At constant exchange rates sales declined by 1 percent and operating profit by
20 percent.


As previously mentioned, sales in the US during the first quarter 2003 included
significant speculative purchases by wholesalers, which lifted trade inventories
to some $400 million higher than normal.  During the first quarter 2004 the
company began implementing inventory management agreements with three large
wholesalers in the US who account for around three quarters of our US sales.
Since the agreements were not in place for the entire period, some purchases
above current demand did occur in the first quarter 2004, estimated to be around
$100 million.   At the end of the first quarter the Company estimates that, in
aggregate, approximately $200 million of inventory above target levels is in the
distribution chain, chiefly in NexiumTM, Toprol-XLTM and AtacandTM.  This
inventory should be worked down over the next two quarters.


The weakness of the US dollar continues to benefit our results. In comparison
with quarter one last year the US dollar weakened against the euro (14 percent),
benefiting sales, and also against the Swedish krona (14 percent) and sterling
(13 percent), increasing costs. Overall, currency benefited EPS by around 3
cents in comparison with quarter one last year.  Should the exchange rates stay
at current levels for the remainder of the year, no further exchange benefits
are expected to accrue.


Gross margin increased by 1.4 percent to 77.4 percent of sales in the quarter,
as payments to Merck declined to 5.6 percent of sales (a reduction of 1.4
percent of sales), attributable to differences in product mix between the
periods.  A small adverse exchange impact (-0.3 percent) was offset by a slight
improvement in underlying cost of sales of a similar magnitude.


Operating margin comparisons are coloured by the marked difference in quarterly
phasing of sales.  Operating margin in the first quarter 2003 was 26.9 percent
of sales (the highest quarter last year) as the benefits of wholesaler stocking
fell straight through to operating profit.  Operating margin in the first
quarter 2004 was 21.3 percent.  Underlying increases in R&D and SG&A
expenditures are estimated to have contributed around half of the margin
difference between the periods, with most of the balance attributable to the
sales phasing in 2003.


In aggregate, R&D and SG&A expenses were $2,849 million, as spending in support
of product launches and the additional recruitment in Discovery and Development
were broadly maintained at the levels reached in the second half of last year.
The increase over first quarter last year was 13 percent in CER terms, but 23
percent on a reported basis, including 10 percent of exchange rate impact.


Interest and Dividend Income


Net interest and dividend income in the quarter was $29 million, compared with
$21 million for the same period last year.  The improvement is due mainly to
lower interest payments in the first quarter 2004 following the repayment of
$319 million of debt in mid-2003.


Taxation


The effective tax rate at 27.5 percent for the first quarter was at the same
level as for quarter one last year.


Cash Flow


Cash inflow from operating activities before exceptional items was $1,276
million, $102 million better than in the first quarter of 2003 despite the lower
operating profit.  This is due to the lower working capital outflows this year
as the trade debtor movement in 2003 was particularly high following the
wholesaler inventory movements.  Tax payments were broadly similar in both
periods, whilst capital expenditure in the current quarter is $37 million lower
than that in the first quarter of 2003.  Before financing and the management of
liquid resources, net cash inflow of $720 million was $149 million ahead of last
year.


Share Repurchase Programme


The Board has approved a new programme of share repurchases of $4 billion to be
completed by the end of 2005, assuming continued market access and the absence
of strategic uses for cash.


During the quarter 12.5 million shares were repurchased for cancellation at a
total cost of $608 million.


The total number of shares that remain in issue at 31 March 2004 is 1,681
million.


Upcoming Milestones and Key Events

22 July             Announcement of second quarter and half year results

6 October           Annual Business Review meeting

21 October          Announcement of third quarter and nine months results


Sir Tom McKillop
Chief Executive


                      This information is provided by RNS
            The company news service from the London Stock Exchange