3rd Quarter Results (1 of 2)

AstraZeneca PLC
21 October 2004





AstraZeneca PLC

Third Quarter and Nine Months Results 2004

          'A strong third quarter with sales up 7 percent and
                 Earnings per Share up 19 percent.'

Financial Highlights (before Exceptional Items)

     Group                             3rd         3rd    Actual    CER           Nine        Nine    Actual    CER
                                   Quarter     Quarter                          Months      Months
                                                               %      %                                    %      %
                                      2004        2003                            2004        2003

                                        $m          $m                              $m          $m
     Sales                           5,265       4,803       +10     +7         15,627      13,974       +12     +6

     Operating Profit                1,261       1,101       +15    +16          3,451       3,262        +6     +2

     Profit before Tax               1,274       1,119       +14    +15          3,521       3,333        +6     +2

     Earnings per Share
  Before Exceptional                 $0.55       $0.47       +17    +19          $1.52       $1.40        +9     +5
  Items
     Statutory (FRS3)                $0.72       $0.47       +53    +56          $1.69       $1.40       +21    +16

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

• Third quarter sales increased by 7 percent to $5,265 million and
  operating profit increased by 16 percent to $1,261 million.

• Sales outside the US increased 8 percent whilst US sales increased by
  6 percent. Growth in total sales is estimated to be 11 percent after adjustment
  for US wholesaler de-stocking. Stock levels are now normal.

• Sales for the nine months increased by 6 percent and operating profit
  by 2 percent.

• Sales of the key growth products were $8,018 million for the nine
  months, estimated to be up 35 percent after adjusting for wholesaler stock
  movements in the US.

• Third quarter earnings per share of $0.72 includes a benefit of $0.17
  from exceptional items.

• Provisions of $80 million have been charged against operating profit
  following the non-approval of Exanta(TM) in the US.

• Nexium(TM) third quarter sales decreased 6 percent; a 34 percent
  increase outside the US was more than offset by a 17 percent decline in the US,
  principally as a result of wholesaler stock building in 2003.

• Crestor(TM) sales were $260 million in the quarter, bringing year to
  date sales to $596 million.  Since launch more than 11 million prescriptions
  have been dispensed worldwide.

• Seroquel(TM) sales were $529 million in the third quarter, and have
  reached $1.9 billion over the last twelve months.  In September, Seroquel(TM)
  became the market leader in new prescriptions in the US atypical antipsychotic
  market.

• The Group now anticipates earnings per share (before exceptional
  items) of around $2.10 for the full year, inclusive of the Exanta(TM) provisions.



Sir Tom McKillop, Chief Executive, said:  'Despite the recent disappointment
with Exanta(TM), the business is performing well in the second half. A continuing
strong performance in the fourth quarter should yield full year pre-exceptional
earnings of around $2.10 per share, and will provide an effective platform for
growth in 2005.'

London, 21 October 2004


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Analyst/Investor Enquiries:   Mina Blair (London)                          [phone]
                              Jonathan Hunt (London)                       [phone]
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                              Ed Seage/Jorgen Winroth (US)                 [phone]/[phone]



Photos of Sir Tom McKillop, Chief Executive and Jonathan Symonds, Chief
Financial Officer are available on www.newscast.co.uk.  Broadcast footage of
AstraZeneca products and activities is available on www.thenewsmarket.com/
astrazeneca.


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

Third Quarter



Sales in the third quarter were $5,265 million, up 10 percent on a reported
basis, including a positive exchange benefit of 3 percent. Sales outside the US
were up 8 percent at CER.  In the US, third quarter sales were up 6 percent
versus a strong third quarter 2003 which included wholesaler stock building.
Inventories in the US are now at target levels in aggregate.  Adjusting for
inventory movements, US sales were up an estimated 15 percent, bringing the
growth rate for Group sales to 11 percent in the quarter.  On this same basis,
global sales of key growth products were up 35 percent over last year,
indicating continued momentum in the business.



Expenditures in R&D and SG&A were $2,760 million in the third quarter, up 4
percent at CER versus the third quarter 2003.  As expected, this rate of growth
is significantly lower than the 13 percent increase at CER reported at the half
year.  Operating profit increased by 16 percent in the third quarter.  Earnings
per share (before exceptional items) in the third quarter was $0.55 versus $0.47
in 2003.  Exceptional gains of $0.17 per share were recorded in the third
quarter arising from the disposal of the Advanta joint venture and an
exceptional tax credit.



Nexium(TM) sales were up 34 percent outside the US.  In the US, sales were down 17
percent due to wholesaler destocking in the current quarter set against
significant wholesaler stock building in the third quarter 2003 ahead of a
September price change.  Dispensed tablet volume in the US increased by 17
percent over 2003.



Crestor(TM) sales were $260 million in the third quarter, including $162 million
in the US.  Since launch 11 million prescriptions have been dispensed worldwide.
Crestor(TM) share of new prescriptions in the US statin market was 7.6 percent
in the week ending 8 October.



Sales of oncology products were up 18 percent in the quarter.  Arimidex(TM) sales
increased 58 percent.  Iressa(TM) sales were $113 million versus $70 million (up
57 percent) in the third quarter 2003.



Seroquel(TM) sales were up 51 percent to $529 million in the quarter.  Sales
outside the US were up 33 percent.  The 59 percent increase in the US was
flattered by a weak third quarter 2003.  US prescription growth remains strong,
up 31 percent year to date.   Sales in the last twelve months are now just under
$1.9 billion.



A comprehensive review of the performance of key brands, as well as an update of
the Group's expanding Research and Development pipeline was presented at the
Annual Business Review meeting held on 6 October.







Nine Months



For the nine months, sales increased 12 percent on a reported basis, including a
positive exchange benefit of 6 percent.  Sales outside the US were up 7 percent
at CER.  US sales were up 4 percent, which is considerably below the estimated
underlying growth rate of 12 percent.



Strong third quarter operating profit growth lifted year to date operating
profits to a 6 percent increase on a reported basis, including a positive
exchange benefit of 4 percent.  Earnings per share (before exceptional items)
was $1.52 compared with $1.40 last year.





Future Prospects



The pattern of good sales growth, combined with the slowing rate of growth in R&
D and SG&A expenses evidenced in the third quarter results, should continue in
the fourth quarter and should give rise to strong earnings growth versus a
comparatively weak fourth quarter last year.  For the full year the Company now
anticipates earnings per share (before exceptional items) of around $2.10.



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 Crestor(TM),
Nexium(TM), Seroquel(TM), Symbicort(TM), Arimidex(TM) and Iressa(TM)), 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
Annual Report and Form 20-F Information 2003.


Sales

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

Gastrointestinal
                                    Third Quarter              CER %       Nine Months               CER %
                                      2004        2003                      2004        2003
Losec(TM)/ Prilosec(TM)                430         631           -34       1,501       2,037           -32
Nexium(TM)                             951       1,000            -6       2,777       2,466           +10
Total                                1,407       1,649           -17       4,342       4,556           -10



• Third quarter sales for Nexium(TM) in the US were down 17 percent, as the
  excess stocks at the end of the second quarter were normalised during this
  quarter, as compared with the significant wholesaler stocking that occurred in
  the third quarter 2003 ahead of a September price change.  Thus nine months
  reported sales in the US (up 2 percent) do not correlate with the estimated
  underlying growth of 22 percent.

• Sales of Nexium(TM) outside the US were up 34 percent for the quarter and
  32 percent for the nine months on strong performance in all major markets.

• The intravenous formulation for Nexium(TM) is now being launched in
  Europe, and US approval is expected in early 2005.  On 16 September, the Group
  announced successful completion of the Mutual Recognition Procedure (MRP) in the
  European Union for new indications for Nexium(TM), including the healing of
  gastric ulcers and, for patients at risk, the prevention of gastric and duodenal
  ulcers associated with NSAID therapy.  Approvals in the US and other markets are
  anticipated in the coming months.

• Prilosec(TM) sales in the US were down 62 percent in the third quarter and
  63 percent year to date, in line with the decline in prescriptions.

• Outside the US, sales of Losec(TM) were down 20 percent in the quarter and
  13 percent for the nine months, although year to date sales increased in Japan
  (up 21 percent) and China (up 25 percent).



Cardiovascular
                                    Third Quarter              CER %       Nine Months               CER %
                                      2004        2003                      2004        2003
Seloken(TM) / Toprol-XL(TM)            353         286           +22       1,006       1,034            -5
Atacand(TM)                            214         185           +13         639         543           +10
Plendil(TM)                            102         144           -30         361         383           -10
Zestril(TM)                            105         116           -12         327         342           -12
Crestor(TM)                            260          76           n/m         596          88           n/m
Total                                1,208         984           +20       3,456       2,920           +12





• Sales of Toprol-XL(TM) in the US were up 35 percent in the third quarter,
  as sales in the quarter were broadly in line with the underlying demand.  Year
  to date prescription growth is 19 percent.  Year to date sales (down 7 percent)
  still compare unfavourably with the wholesaler stock building which occurred in
  the first nine months of 2003.  Patent litigation is progressing in the US
  against three companies seeking FDA approval to sell generic metoprolol
  succinate.  Further information about this litigation is set out in Note 4 to
  these interim financial statements.

• Sales of Seloken(TM) outside the US were down 2 percent in the quarter and
  up 2 percent for the nine months.

• Atacand(TM) sales outside the US were up 15 percent in the third quarter
  and 17 percent for the nine months.







• Atacand(TM) sales in the US were up 7 percent in the quarter and down 4
  percent for the nine months.  Total prescriptions through August declined by 3
  percent.

• Review of regulatory applications in the EU and the US seeking approval
  for Atacand(TM) in the treatment of chronic heart failure are ongoing.

• Crestor(TM) sales in the third quarter were $260 million, including $162
  million in the US, an increase over the corresponding figures in the second
  quarter of $207 million and $113 million respectively.

• Crestor(TM) has now been approved in 64 countries and launched in 51.
  Since launch more than 11 million prescriptions have been dispensed.

• Following a positive recommendation from an advisory committee to the
  Ministry of Health in Japan, Crestor(TM) is on track for approval before the end
  of 2004.

• Growth in the US statin market has accelerated through 2004 as a result
  of increased promotional efforts and the publication of new guidelines calling
  for more intensive treatment of elevated cholesterol.  New prescriptions for
  statins in the third quarter grew 18 percent, as compared with just 6 percent
  growth for the full year 2003.  Crestor(TM) share of new prescriptions in this
  expanding market for the week ending 8 October was 7.6 percent, a 0.9 point
  recovery from early July.  Market share in the dynamic segment (new and switch
  patients) was 14.7 percent in the latest week.

• Crestor(TM) sales in Europe ($157 million year to date) reflect good
  progress in the launches in France (3.4 percent value share at 30 weeks) and in
  Italy (8.0 percent value share at week 26).  In the latest month, Crestor(TM)
  share of total statin prescriptions in the Netherlands is 9.9 percent, 11.4
  percent in Canada and 3.5 percent in the UK.





Respiratory
                                    Third Quarter              CER %       Nine Months               CER %
                                      2004        2003                      2004        2003
Symbicort(TM)                          185         128           +39         578         377           +37
Pulmicort(TM)                          211         184           +12         737         674            +4
Rhinocort(TM)                           87          86             -         268         272            -4
Accolate(TM)                            31          20           +55          84          76            +8
Oxis(TM)                                25          31           -22          76          91           -25
Total                                  574         485           +15       1,861       1,600            +8



• Sales of Symbicort(TM) increased 39 percent in the third quarter and 37
  percent for the nine months.  Sales in the last twelve months reached $750
  million.

• In the US, sales of Pulmicort(TM) Respules(TM) in the quarter (up 17
  percent) and for the nine months (up 14 percent) are below the estimated
  underlying growth of 20 percent as a result of wholesaler destocking compared
  with the same period in 2003.

• Total prescriptions in the US market for intranasal steroids to treat
  allergies are flat year to date, as are prescriptions for Rhinocort(TM) Aqua.
  Sales for the nine months are down 7 percent due to wholesaler inventory
  movements.











Oncology
                                    Third Quarter              CER %       Nine Months               CER %
                                      2004        2003                      2004        2003
Casodex(TM)                            258         230            +7         736         647            +5
Zoladex(TM)                            236         224            +1         675         630            -1
Arimidex(TM)                           221         136           +58         578         372           +45
Iressa(TM)                             113          70           +57         309         136          +117
Faslodex(TM)                            24          19           +26          73          56           +28
Nolvadex(TM)                            30          38           -26          99         138           -35
Total                                  885         722           +18       2,481       1,993           +15



• Casodex(TM) sales outside the US were up 6 percent in the quarter and 11
  percent for the nine months.  Japan continues to be the main driver for growth,
  with sales up 27 percent for the nine months.

• Casodex(TM) sales in the US for the nine months remain below last year's
  level (down 10 percent) compared with estimated sales growth of 7 percent as a
  result of stocking differences between the periods.

• Arimidex(TM) sales continue to benefit from increased usage in the
  treatment of early breast cancer.  Total prescriptions for Arimidex(TM) in the US
  increased 43 percent through September.  US sales growth for the nine months was
  42 percent (up from the 29 percent reported at the half year) as a result of
  strong third quarter growth (up 67 percent).

• Arimidex(TM) sales for the nine months also grew strongly in Europe (up 55
  percent) and in Japan (up 36 percent).

• Sales of Iressa(TM) in the US were $59 million in the quarter and $159
  million for the nine months.  Retail prescriptions in the third quarter were 63
  percent higher than last year and 8 percent ahead of the second quarter 2004.
  Sales in Japan were up 15 percent in the quarter and 30 percent for the nine
  months.  Sales in other markets reached $53 million for the nine months.

• Sales for Faslodex(TM) for the nine months were up 28 percent on launches
  following European marketing approval in March of this year.  US sales were up
  13 percent.



Neuroscience
                                    Third Quarter              CER %       Nine Months               CER %
                                      2004        2003                      2004        2003
Seroquel(TM)                           529         345           +51       1,465       1,059           +35
Zomig(TM)                               81          83            -4         267         245            +2
Diprivan(TM)                           126         105           +18         374         339            +5
Local anaesthetics                     128         121            +4         398         344            +7
Others                                  16          17           -12          54          54            -9
Total                                  880         671           +29       2,558       2,041           +20



• Seroquel(TM) sales outside the US increased 33 percent in the third
  quarter on strong growth in Europe (up 44 percent) fuelled by the launches for
  the bipolar mania indication.  Nine month sales were up 28 percent.

• Prescriptions for atypical antipsychotics in the US increased 9 percent
  through September; Seroquel(TM) prescriptions were up 31 percent.  In September,
  Seroquel(TM) share of new prescriptions reached 26.4 percent, overtaking
  risperidone to become the leading product in new prescriptions.

• Third quarter sales of Seroquel(TM) in the US were in line with underlying
  demand.  The 59 percent growth rate reflects wholesaler destocking in the third
  quarter 2003.  Sales for the nine months were up 37 percent.

• Zomig(TM) sales in the US were down 9 percent in the third quarter, and up
  2 percent for the nine months.  Outside the US, third quarter sales were down 2
  percent and up 3 percent for the nine months.



Geographic Sales
                                Third Quarter               CER %        Nine Months                CER %
                                  2004         2003                       2004         2003
US                               2,407        2,271            +6        6,974        6,703            +4
Europe                           1,858        1,662            +7        5,661        4,863            +3
Japan                              352          297            +9        1,018          833            +9
RoW                                648          573           +12        1,974        1,575           +16



• The reported growth rates for sales in the US, influenced by wholesaler
  stock movements, understate the strong underlying growth.  Adjusted for stock
  movements, nine month sales were up 12 percent (28 percent excluding the three
  patent expired products)

• For the nine months, sales growth in Europe reflects, in addition to the
  launch roll-out for Crestor(TM), strong performances for Nexium(TM) (up 30 percent),
  Symbicort(TM) (up 35 percent), Arimidex(TM) (up 55 percent), and Seroquel(TM) (up 40
  percent).  This strong volume growth was able to offset the sales decline in
  Losec(TM) and price erosion in most markets.

• Oncology products (up 20 percent) and Losec(TM) (up 21 percent) drove
  sales performance in Japan for the nine months.


Operating Review

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

Third Quarter

Reported sales increased by 10 percent and operating profit by 15 percent. At
constant exchange rates sales increased by 7 percent and operating profit by 16
percent.

In quarter three, the net effect of exchange on operating profit was marginally
negative and reduced EPS by less than 1 cent. Compared with quarter three last
year the euro was 8 percent stronger than the US dollar, benefiting sales,
whilst the Swedish krona and sterling were respectively 8 percent and 11 percent
stronger, increasing costs. Hedging gains were broadly similar to quarter three
last year.

The US inventory management agreements (IMAs) have now been extended to 16
wholesalers and are providing more predictability to shipments in the US.
Excess inventories have been largely worked off and at the end of the third
quarter target inventories of less than one month had been achieved for most
products. During the third quarter, wholesaler inventories over and above normal
levels fell by around $75 million compared with an increase of $100 million
during quarter three last year. Adjusting for these movements, total Group sales
increased by approximately 11 percent.

Gross margins improved by 0.6 percentage points to 76.1 percent for the quarter.
Sales mix continues to improve with payments to Merck declining to 4.9 percent
of sales in the quarter from 6.7 percent in the third quarter last year.
Following non-approval of Exanta(TM) in the US by the FDA, provisions of $80
million have been made against inventories and assets associated with Exanta(TM).

In aggregate, R&D and SG&A expenses were $2,760 million, an increase of 4
percent versus the third quarter last year as launch costs have peaked. R&D
expenditure grew by 8 percent against a relatively low quarter in 2003 whilst SG
&A growth was restricted to 2 percent, mainly through relatively low promotional
expenses in the US compared to the third quarter last year. Before the adverse
impact of currency, R&D and SG&A together declined by 1.5 points in the quarter
as a percentage of sales.

Operating margin for the quarter was 24.0 percent, an increase of 1.1 points
over the same period last year. Gross margin, SG&A and R&D (as noted above)
benefited operating margin, with the adverse currency impact on costs reducing
margin by around 0.8 points.



Nine Months

Reported sales increased by 12 percent and operating profit by 6 percent. At
constant exchange rates sales increased by 6 percent and operating profit by 2
percent. Cumulatively, exchange benefited EPS by around 5 cents. We expect to
see a 2 cent to 3 cents negative effect in quarter four, based on current
exchange rates and  the hedging benefits seen in quarter four 2003 which are not
expected to be repeated.

As mentioned above, US wholesaler inventories have come down to target levels.
The first nine months of 2003 saw a substantial buy-in of $300 million of
wholesaler inventories over and above normal. Adjusting for these movements,
total Group sales grew by approximately 10 percent.

Gross margin increased by 1.2 points to 76.8 percent. Payments to Merck at 5.2
percent of sales are 1.4 points lower than last year but this benefit, and that
from ongoing operating improvements, were partially offset by the provisions in
respect of Exanta(TM).

The rate of growth in R&D and SG&A expenses for the nine months was 10 percent
at CER (18 percent as reported), which is down from the 13 percent CER growth
reported at the half year, mainly as a result of launch costs having peaked.
Individually, R&D recruitment in Discovery and Development in the latter half of
last year continued to drive cost growth over the first nine months of 2004,
whilst SG&A growth was driven by product launches and new consumer campaigns.

Operating margin for the nine months was 22.1 percent, 1.2 points below the same
period last year. The improvement in gross margin percentage has been more than
offset by the growth in investment in R&D and SG&A, particularly in the first
half of the year.





Interest and Dividend Income

Net interest and dividend income for the first nine months was $70 million ($71
million in 2003), including $13 million in the third quarter ($18 million in
2003).  As previously reported, net interest includes a gain arising from the
close out of an interest rate swap that has offset a decline in core net
interest income, as US dollar yields have been lower than last year whilst
interest payments have increased.



Taxation

The effective tax rate for the third quarter and nine months was 27.0 percent
compared with 27.5 percent for the comparative periods in 2003.

The movements in the Statement of Total Recognised Gains and Losses include a
credit of $357 million in respect of agreed tax relief on exchange losses in the
UK.



Exceptional Items

The disposal of the Advanta joint venture was completed on 1 September 2004 for
$287 million, including $48 million due on final agreement of the net assets at
disposal. The profit on disposal, after transaction costs and warranty and
indemnity provisions, was $219 million. There is no tax charge arising on the
disposal.



An agreement has been reached with US tax authorities that a portion of the $355
million Zoladex(TM) settlement, recorded as an exceptional item in 2002, is
deductible for tax purposes. Consequently, an exceptional tax credit has been
recorded in quarter three of $58 million in relation to this.





Cash Flow

Cash generated from operating activities before exceptional items in the nine
months increased to $3,805 million from $3,532 million in the comparative
period. This was due to increased trading profits for the nine months against
the same period last year which, together with a reduced net outflow relating to
working capital requirements and a reduction in the cash paid in respect of
exceptional items, has meant that net cash from operating activities increased
by $652 million to $3,797 million.



Tax paid ($1,011 million) and capital expenditure ($927 million) were broadly
similar to the comparative period in 2003. There was a $308 million inflow from
the disposals of Durascan and Advanta compared to $80 million in respect of the
disposal of Marlow Foods in the prior year.



The 2004 interim dividend payment was made in September as opposed to October in
2003, resulting in accelerated dividend payments of $1,378 million compared to
$770 million. $1,550 million has been paid under the share repurchase scheme in
the nine months to date compared with $532 million in the comparative period in
2003.



Net cash funds have decreased by $607 million from the beginning of the year to
stand at $2,889 million at 30 September 2004.







Share Repurchase Programme

During the third quarter, 13.3 million shares were repurchased for cancellation
at a total cost of $582 million bringing the total repurchases for the first
nine months to 33.5 million shares at a total cost of $1,550 million.



The total number of shares that remain in issue at 30 September 2004 is 1,661
million.



Upcoming Milestones and Key Events
25 October 2004              Communication of 2003 and H1 2004 IFRS restatements
27 January 2005              Announcement of fourth quarter and full year 2004 results





Sir Tom McKillop

Chief Executive


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