3rd Quarter Results - 1 of 2

AstraZeneca PLC
01 November 2007





AstraZeneca PLC
Third Quarter and Nine Months Results 2007

'Nine Months sales up 7 percent, core EPS up 8 percent.  On track to deliver
full year earnings target.'

Financial Highlights

Group                   3rd Quarter  3rd Quarter    Actual       CER       9 Months    9 Months    Actual       CER
                               2007         2006         %         %           2007        2006         %         %
                                 $m           $m                                 $m          $m
Sales                         7,150        6,516       +10        +6         21,389      19,321       +11        +7

Operating Profit              2,022        2,106        -4        -7          6,165       6,213        -1        -3

Profit before Tax             1,888        2,187       -14       -16          6,146       6,440        -5        -7

Earnings per Share            $0.91        $1.01       -11       -13          $2.88       $2.93        -2        -4

Core EPS*                     $1.04        $1.03        +1        -2          $3.28       $2.98       +10        +8


* Core EPS is a supplemental non-IFRS measure which management believes is
useful to understanding the Company's performance.  This measure is adjusted to
exclude: restructuring costs of $0.06 and $0.28 in Q3 and YTD respectively;
amortisation of significant intangible assets arising from corporate
acquisitions (ie MedImmune) of $0.05 in Q3 and $0.07 YTD; and amortisation of
intangibles related to our current and future exit arrangements with Merck in
the US of $0.02 in Q3 and $0.05 YTD.



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

•    Third quarter sales increased 6 percent to $7,150 million.  Excluding US sales of Toprol-XLTM from the
     current and the prior year quarter, sales increased 9 percent. The inclusion of MedImmune increased sales 2
     percent.
•    Operating profit in the third quarter was $2,022 million, down 7 percent. Operating profit was reduced by
     restructuring costs of $146 million and by $212 million from the inclusion of MedImmune, as a result of the
     expected seasonal trading loss and the amortisation of intangible assets.
•    For the nine months, sales were $21,389 million, up 7 percent.  Operating profit was down 3 percent, to
     $6,165 million.  Operating profit was reduced by restructuring costs of $604 million and by an operating loss
     of $315 million from the inclusion of MedImmune.
•    Free cash flow before acquisitions was $3,607 million for the nine months.  Cash distributions to
     shareholders were $5,773 million, including net share repurchases of $3,132 million.
•    Two additional compounds (PN400 for pain and CrestorTM/ABT-335 fixed-dose combination for lipid disorders)
     progressed to Phase III development, bringing the total number of Phase III projects to ten.
•    Seroquel XRTM was launched in the US in August; first European approval was received on 29 August in the
     Netherlands.
•    Combined sales of 5 key products increased 14 percent for the nine months: NexiumTM (up 2 percent); Seroquel
     TM (up 15 percent); CrestorTM (up 39 percent); ArimidexTM (up 11 percent) and SymbicortTM (up 23 percent).

David Brennan, Chief Executive Officer, said:  'We continue to make progress on
our key priorities: the business is on track to meet its earnings target for the
full year, the entire organisation is driving for increased productivity and the
pipeline has been further strengthened with two projects added to Phase III
development during the quarter.'

London, 1 November 2007



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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 increased 6 percent at CER, or 10 percent on an as
reported basis (including a 4 percent positive impact from currency movements).
The inclusion of sales from MedImmune accounted for 2 percent of the sales
increase.  Excluding US sales of Toprol-XLTM from both the current and prior
year, third quarter sales were up 9 percent.  Sales in the US were up 3 percent,
affected by the generic competition for Toprol-XLTM.  Sales outside the US were
up 9 percent, including a 14 percent increase in Emerging Markets.



Operating profit in the third quarter was $2,022 million, down 7 percent.
Excluding $146 million in restructuring costs, operating profit was unchanged in
the quarter.  The inclusion of MedImmune reduced operating profit by $212
million. This reduction reflects the seasonal trading loss and the amortisation
of intangible assets, together with charges in respect of post-acquisition
pipeline rationalisation.  Operating profit was also affected by the onset of
full generic competition for Toprol-XLTM in the US market.



Expenditures in Research and Development were up 32 percent to $1,335 million;
MedImmune and restructuring charges accounted for 18 percent of this increase.



In the third quarter, SG&A expenses increased 10 percent to $2,487 million.
Excluding amortisation and other SG&A expenses resulting from the inclusion of
MedImmune and restructuring costs, underlying SG&A expenditures were down 3
percent in the quarter.



Reported earnings per share in the third quarter were $0.91 compared with $1.01
in 2006.



NexiumTM sales in the third quarter were $1,293 million, down 1 percent.  Sales
in the US were down 3 percent.  NexiumTM continued to gain share in the branded
segment of the US PPI market, but it was insufficient to offset lower realised
prices and the growth in generic omeprazole.  NexiumTM sales in other markets
were up 3 percent.



SeroquelTM sales increased 22 percent to $1,055 million in the third quarter,
the first time sales have exceeded one billion dollars in a quarter.  Sales in
the US were up 24 percent, which included initial stocking of Seroquel XRTM
ahead of its launch in August.  Approval of Seroquel XRTM was achieved in the
Netherlands on 29 August, which will enable the Company to seek similar
approvals across Europe utilising the Mutual Recognition Procedure.  Sales
outside the US were up 17 percent.



CrestorTM sales in the third quarter were up 25 percent to $691 million.  Sales
in the US were up 14 percent to $342 million, with market share holding steady
despite the strong growth of generic simvastatin products.  Sales in other
markets increased 40 percent to $349 million.



ArimidexTM sales increased 7 percent in the third quarter to $425 million, on a
7 percent increase in the US and 8 percent sales growth in other markets.



SymbicortTM sales in the third quarter were up 25 percent to $371 million.  The
US launch began on 26 June.  In the US, SymbicortTM share of patients newly
starting fixed combination therapy reached 9.8 percent in the week ending 19
October, with a 4.6 percent share of all new prescriptions for combination
products.  Sales outside the US were up 24 percent.





Nine Months



For the nine months, sales increased 7 percent at CER, or 11 percent on an as
reported basis; currency movements had a 4 percent positive impact on reported
sales growth.  The inclusion of MedImmune sales from 1 June contributed less
than 1 percent to the sales increase. Excluding US sales of Toprol-XLTM from the
current and prior year periods, sales increased 9 percent.  Sales in the US and
in other markets were each up 7 percent for the nine months.



Operating profit was $6,165 million for the nine months, down 3 percent.
Excluding the $604 million in restructuring costs charged in the nine months,
operating profit increased 7 percent.  Earnings per share for the nine months
were $2.88 (including $0.28 of restructuring costs), compared with $2.93 in
2006.



Enhancing Productivity

In furtherance of the wide range of productivity initiatives announced earlier
this year, $146 million of restructuring costs have been charged in the third
quarter, bringing the total for the nine months to $604 million.  The Company
still anticipates the full year charge to be around $900 million, subject to the
successful conclusion of employee consultation processes.



Future Prospects



The Company continues to perform well in increasingly challenging market
conditions.  Sales growth for the full year is now anticipated to be around 7 to
8 percent at CER, which takes into account both the increase from consolidation
of MedImmune sales and the anticipated sales decline for Toprol-XLTM in the US.

The target for earnings per share remains in the range of $3.60 to $3.75, which
excludes restructuring costs and the US contribution from Toprol-XLTM.
Following the full launch of generic competition to Toprol-XLTM in the US
market, the Company now estimates a full year contribution from Toprol-XLTM in
the US of around $0.38.  Inclusion of this estimate results in target earnings
per share in the range of $3.98 to $4.13, excluding restructuring costs.

Restructuring costs for the nine months were $604 million ($0.28 per share).
The extent to which the full year estimate of $900 million ($0.44 per share)
will be realised is subject to the timing of the consultation process.



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 competitors to Toprol-XLTM in
the US market, the rate of growth in sales of generic omeprazole in the US,
continued growth in currently marketed products (in particular CrestorTM, Nexium
TM, SeroquelTM, SymbicortTM and ArimidexTM), 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 2006 Annual
Report and Form 20-F.





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 %
                                      2007        2006                      2007        2006
NexiumTM                             1,293       1,280            -1       3,913       3,752            +2
LosecTM/PrilosecTM                     268         324           -20         845       1,024           -20
Total                                1,581       1,625            -5       4,818       4,830            -3


•    In the US, NexiumTM sales in the third quarter were $851 million, down 3 percent compared to last year.
     Market share of total prescriptions in the US PPI market was 27.7 percent in September; however, continued
     share gains in the branded segment were unable to offset the strong growth of generic omeprazole and lower
     realised prices.  Estimated underlying demand was unchanged for the quarter, as a 2 percent decrease in
     dispensed tablet volume was offset by an increase from non-retail channels.


•    US sales of NexiumTM for the nine months were up 1 percent to $2,568 million.


•    NexiumTM sales in other markets in the third quarter were up 3 percent.  Sales in Emerging Markets were up 34
     percent, which more than offset the 8 percent decline in Western Europe.


•    NexiumTM sales in other markets were up 3 percent for the nine months.


•    For the nine months, PrilosecTM sales in the US were up 8 percent.  LosecTM sales in other markets were down
     25 percent, although sales increased in Japan and China.



Cardiovascular
                                    Third Quarter              CER %       Nine Months               CER %
                                      2007        2006                      2007        2006
CrestorTM                              691         536           +25       1,997       1,403           +39
SelokenTM /Toprol-XLTM                 328         473           -33       1,229       1,407           -14
AtacandTM                              320         279            +8         934         809           +10
ZestrilTM                               72          76           -11         228         229            -6
PlendilTM                               66          68            -9         205         210            -8
Total                                1,621       1,579            -1       5,029       4,509            +8


•    In the US, CrestorTM sales in the third quarter were $342 million, a 14 percent increase over last year.
     Total prescriptions in the US statin market increased 7 percent in the quarter; CrestorTM prescriptions were
     up 15 percent.  CrestorTM share of total prescriptions in the US statin market is holding steady at 8.6
     percent in September, despite the continued strong growth for simvastatin, which has increased its market
     share by more than six points during the course of 2007.


•    US sales of CrestorTM for the nine months were up 31 percent to $1,038 million.


•    In other markets, CrestorTM sales were up 40 percent in the third quarter to $349 million.  Sales in Western
     Europe were up 20 percent; sales in Canada increased 45 percent.


•    Volume share of the statin market for CrestorTM is now 20.1 percent in Canada; 12.1 percent in the
     Netherlands; 20.4 percent in Italy; and 14.9 percent in France.


•    The launch of CrestorTM in Japan is progressing well, achieving a 7.3 percent volume market share in August
     2007.


•    US sales of the Toprol-XLTM product range, which includes sales of the authorised generic, were down 43
     percent in the quarter and 20 percent for the nine months, as the full range of dosage strengths were subject
     to generic competition from August 2007.  Generic products accounted for 57 percent of dispensed
     prescriptions in the quarter.


•    Sales of SelokenTM in other markets were up 6 percent in the third quarter and 7 percent for the nine months
     as a result of growth in Emerging Markets.


•    AtacandTM sales in the US were down 7 percent in the third quarter and increased 1 percent for the nine
     months.


•    Sales of AtacandTM in other markets were up 13 percent in the quarter and 12 percent year to date.



Respiratory
                                    Third Quarter              CER %       Nine Months               CER %
                                      2007        2006                      2007        2006
SymbicortTM                            371         276           +25       1,139         861           +23
PulmicortTM                            286         263            +6       1,007         892           +11
RhinocortTM                             80          83            -7         267         270            -4
AccolateTM                              19          20            -5          57          59            -3
OxisTM                                  18          21           -24          64          65            -9
SynagisTM *                            122           -           n/m         138           -           n/m
FluMistTM *                              -           -             -           -           -             -
Total                                  935         696           +29       2,793       2,252           +19

* Sales of these MedImmune products are consolidated in AstraZeneca accounts
from 1 June 2007.  As a result, there are no prior period sales included.
•    SymbicortTM sales in the third quarter were up 25 percent to $371 million, on a 24 percent increase in
     markets outside the US.  Growth in Europe has been fuelled by increased usage in COPD as well as market share
     gains in asthma, where the launch of the SymbicortTM SMARTTM regimen is having an impact.


•    In the US, SymbicortTM sales in the third quarter were $4 million following $30 million in launch stocks sold
     in the second quarter. Since launch at the end of June, nearly half of allergists and one third of pulmonary
     specialists targeted by promotional efforts have prescribed SymbicortTM.  SymbicortTM share of new
     prescriptions for fixed combination products was 4.6 percent in the week ending 19 October; market share of
     patients newly starting combination therapy reached 9.8 percent.


•    Worldwide sales of SymbicortTM for the nine months increased 23 percent to $1,139 million.


•    Sales of PulmicortTM in the US increased 12 percent in the third quarter and 16 percent year to date.
     PulmicortTM RespulesTM sales were up 24 percent in the third quarter, on estimated volume growth of 18
     percent.


•    PulmicortTM sales in other markets were down 2 percent in the third quarter and up 1 percent for the nine
     months.


•    Sales of RhinocortTM Aqua in the US were down 8 percent for the nine months.  Total prescriptions declined 15
     percent.


•    Sales of SynagisTM totalled $122 million in the third quarter.  US sales were $56 million; sales outside the
     US were $66 million.  There are no corresponding sales recorded in the AstraZeneca accounts in the prior year
     period; on a pro-forma basis SynagisTM sales are 9 percent ahead of last year, bearing in mind that SynagisTM
     sales are highly seasonal, with the majority of sales recorded in the fourth and first quarters.



Oncology
                                    Third Quarter              CER %       Nine Months               CER %
                                      2007        2006                      2007        2006
ArimidexTM                             425         382            +7       1,256       1,096           +11
CasodexTM                              324         299            +5         965         879            +6
ZoladexTM                              273         255            +2         797         736            +4
IressaTM                                55          62           -11         168         174            -3
FaslodexTM                              54          47           +11         156         138            +9
NolvadexTM                              20          21           -10          59          66           -12
EthyolTM *                              19           -           n/m          27           -           n/m
Total                                1,189       1,076            +7       3,480       3,105            +8

* Sales of this MedImmune product are consolidated in AstraZeneca accounts from
1 June 2007.  As a result, there are no prior period sales included.
•    In the US, sales of ArimidexTM were up 7 percent in the third quarter to $167 million.  ArimidexTM has a
     market-leading 38.3 percent share of total prescriptions for hormonal treatments for breast cancer.  Sales
     for the nine months were up 15 percent, with total prescriptions 6 percent higher than last year.


•    ArimidexTM sales in other markets were up 8 percent in the third quarter and 7 percent for the nine months.


•    CasodexTM sales in the US were down 1 percent in the third quarter and were up 3 percent for the nine months.


•    CasodexTM sales in other markets increased 7 percent for both the third quarter and nine months.  Sales for
     the nine months were up 13 percent in Japan and increased 6 percent in Western Europe.


•    Sales of IressaTM were down 3 percent for the nine months, although sales were up 4 percent in Japan and
     increased 16 percent in China.


•    FaslodexTM sales were up 9 percent for the nine months.  Sales in Western Europe were up 10 percent; sales in
     Emerging Markets increased 29 percent.



Neuroscience
                                    Third Quarter              CER %       Nine Months               CER %
                                      2007        2006                      2007        2006
SeroquelTM                           1,055         848           +22       2,941       2,504           +15
ZomigTM                                107          99            +5         320         295            +5
Total                                1,371       1,150           +16       3,891       3,464           +10


•    In the US, SeroquelTM sales were up 24 percent in the third quarter to $760 million.  Third quarter sales
     included around $80 million of stocking sales for the new Seroquel XRTM formulation, ahead of the full launch
     promotion that started on 20 August.  Sales for the nine months were up 15 percent.  Total prescriptions for
     the nine months are 10 percent ahead of last year, twice the rate of market growth.  SeroquelTM share of
     total prescriptions for antipsychotic products in the US was a market-leading 31.4 percent in September.


•    SeroquelTM sales in other markets were up 17 percent in both the third quarter and year to date.


•    Sales of ZomigTM were up 5 percent for the nine months, which is the same sales growth rate achieved in both
     the US and Rest of World markets.



Geographic Sales
                                Third Quarter               CER %        Nine Months                CER %
                                  2007         2006                       2007         2006
North America                    3,485        3,355            +3       10,515        9,827            +7
  US                             3,199        3,100            +3        9,701        9,059            +7
Established ROW*                 2,791        2,445            +8        8,297        7,386            +5
Emerging ROW                       874          716           +14        2,577        2,108           +16

*Established ROW comprises Western Europe (including France, UK, Germany, Italy,
Sweden and others), Japan, Australia and New Zealand.
•    Sales in the US were up 3 percent in the third quarter, as growth in SeroquelTM and CrestorTM, as well as the
     inclusion of MedImmune sales, more than offset the sales decline for Toprol-XLTM.  Excluding Toprol-XLTM from
     both the current and prior year quarter, sales were up 9 percent.


•    Sales growth in the Established Rest of World segment was 8 percent in the third quarter.  Sales in Western
     Europe were up 6 percent, benefiting from growth in SymbicortTM, CrestorTM and SeroquelTM, along with the
     inclusion of SynagisTM sales.  Excluding SynagisTM, Western Europe sales increased 3 percent.  Sales in Japan
     were up 10 percent, with CrestorTM and oncology products accounting for nearly two-thirds of the increase.


•    Sales in Emerging Markets increased 14 percent in the third quarter.  Sales in Emerging Europe were up 16
     percent.  Sales in China increased 25 percent in the quarter.







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 fell by 4 percent.
At constant exchange rates, sales increased by 6 percent and operating profit
fell by 7 percent. Excluding the impact of MedImmune and restructuring costs,
operating profit increased by 10 percent.


Quarter Three              Operating Profit        CER %          EPS        CER %

                                         $m

Reported                              2,022           -7        $0.91          -13
MedImmune                               212          n/a        $0.23          n/a
Restructuring Costs                     146          n/a        $0.06          n/a
Underlying                            2,380          +10        $1.20          +16





Currency movements increased sales by 4 percent and operating profit by 3
percent. In comparison to last year, the dollar was 7 percent weaker against the
euro, increasing sales, and also against the Swedish krona (7 percent) and
sterling (7 percent), increasing costs.  The net effect of these currency
movements was a positive impact of 2 cents on earnings per share.



Underlying US sales growth is slightly ahead of reported growth of 3 percent
after adjusting for managed market accruals, inventory movements and provision
movements. Outside the US, sales increased by 9 percent.



In the third quarter, reported operating margin was 28.3 percent. Excluding the
MedImmune operating loss of $212 million and restructuring costs of $146
million, underlying operating margin was 34.0 percent, an increase of 1.7
percentage points on the third quarter in 2006 (see table below).


Quarter Three                   Reported %     Restructuring     MedImmune $m  Underlying %  Change versus
                                                       costs                                           PY*

                                                          $m

Gross Margin                          79.8              (39)              88           80.7           +1.3
Distribution                           0.8                 -              (1)           0.7           +0.1
R&D                                   18.7               (8)            (167)          16.6           -1.8
SG&A                                  34.8              (99)            (193)          31.3           +2.1
Other Operating Income                 2.8                 -              61            1.9              -
Operating Profit                      28.3             (146)            (212)          34.0           +1.7

                     * Positive number indicates favourable effect on operating
profit versus prior year.



Underlying gross margin of 80.7 percent in quarter three is 1.3 percentage
points higher than last year. Payments to Merck, at 4.0 percent of sales, were
0.8 percentage points lower than last year. Currency increased margin by 0.2
percentage points, counterbalancing a negative 0.2 percentage point impact from
increased royalty payments. Excluding the effect of these additional factors,
gross margin increased by 0.5 percentage points, due to continuing operational
efficiencies.



Underlying R&D expenditure was $1,160 million in the third quarter, up 14
percent over last year due principally to increased activity levels and the
effect of the externalisation strategy, particularly the collaboration with
Bristol-Myers Squibb.



Underlying SG&A costs of $2,195 million were 3 percent lower than quarter three
in 2006 as operating efficiencies continue to be driven from our sales and
marketing activities. The inclusion of MedImmune added $193 million, including
intangible amortisation of $105 million.



Underlying other income of $136 million was $12 million above the third quarter
in 2006. Other income relating to MedImmune amounted to $61 million.



Included within cost of sales is the movement in the fair value of financial
instruments used to manage our transactional currency exposures; the net gain in
the quarter was $31 million (compared with a loss of $16 million for the same
period last year).  Fair value losses of $7 million were charged elsewhere in
the income statement.





Nine Months

Reported sales increased by 11 percent and operating profit fell by 1 percent.
At constant exchange rates, sales increased by 7 percent and operating profit
fell by 3 percent. Excluding the effect of MedImmune and restructuring costs,
operating profit increased by 12 percent.


Nine Months                Operating Profit       CER  %          EPS       CER  %

                                         $m

Reported                              6,165           -3        $2.88           -4
MedImmune                               315          n/a        $0.29          n/a
Restructuring Costs                     604          n/a        $0.28          n/a
Underlying                            7,084          +12        $3.45          +16



Currency movements increased reported sales by 4 percent and operating profit by
2 percent. Cumulatively, exchange has increased earnings per share by 5 cents.
If current exchange rates are maintained for the remainder of the year no
further benefits are expected to accrue.



Underlying US sales growth is broadly in line with reported growth of 7 percent
after adjusting for managed market accruals, inventory movements and provision
movements. Outside the US, sales increased by 7 percent.



In the first nine months, reported operating margin was 28.8 percent.  Excluding
MedImmune losses of $315 million and restructuring costs of $604 million,
underlying operating margin was 33.4 percent, an increase of 1.2 percentage
points on 2006 (see table below).


Nine Months                     Reported %     Restructuring        MedImmune  Underlying %  Change versus
                                                       costs                                           PY*
                                                                           $m
                                                          $m

Gross Margin                          78.5             (320)             106           80.1           +0.7
Distribution                           0.9                 -              (2)           0.8              -
R&D                                   17.4              (37)            (195)          16.5           -2.1
SG&A                                  34.2             (247)            (313)          31.8           +2.3
Other Operating Income                 2.8                 -              89            2.4           +0.3
Operating Profit                      28.8             (604)            (315)          33.4           +1.2

                     * Positive number indicates favourable effect on operating
profit versus prior year.



Underlying gross margin of 80.1 percent is 0.7 percentage points higher than
last year. Payments to Merck, at 4.2 percent of sales, were 0.5 percentage
points lower than last year. Currency increased gross margin by 0.4 percentage
points whilst higher royalty payments reduced margin by 0.3 percentage points.
Excluding the effect of these additional factors, gross margin was 0.1
percentage points higher than last year.



Underlying R&D expenditure was $3,498 million in the first nine months of 2007,
up 18 percent over last year due principally to increased activity levels and
the effect of the externalisation strategy. SG&A costs excluding restructuring
and MedImmune were 2 percent lower than the same period in 2006.



Included within cost of sales is the movement in the fair value of financial
instruments used to manage our transactional currency exposures; the net gain in
the first nine months was $40 million (compared with a loss of $36 million for
the same period last year).  Other fair value losses of $18 million were charged
elsewhere in the income statement.



Restructuring Costs

At the half year, the Company provided further details in respect of the various
productivity initiatives being undertaken to enhance the long-term efficiency of
the business. As of 30 September, the following charges have been taken:
                                                              Charged at 30
                                                                  September
                                                      Quarter
                                                                         $m
                                                        Three

                                                           $m
Gross Margin

Global Supply Chain                                        39           320

R&D

Restructuring of Clinical, Regulatory Affairs               8            37
and Disease Area Strategy

SG&A

European Sales Force Restructuring                         22           168

IS and Business Infrastructure                             77            79

TOTAL (REPORTED BASIS)                                    146           604

Of which cash costs:                                       73           512




All programmes continue to progress to plan, with forecasts for the total costs
and benefits associated with each initiative remaining in accordance with the
guidance issued in the second quarter news release.

Toprol-XLTM

In the first nine months, Toprol-XLTM contributed US sales of $883 million
(2006: $1,105 million) and EPS of 35 cents (2006: 40 cents).  During the third
quarter all remaining strengths of Toprol-XLTM became exposed to generic
competition. If Toprol-XLTM were excluded from the first nine months results for
both the current and prior year periods, sales growth would be 9 percent (versus
7 percent on a reported basis) and EPS would be down 3 percent (compared with a
4 percent decrease as reported).  Using the same basis in the third quarter,
sales would be up 9 percent (compared with a 6 percent increase as reported) and
EPS would be down 9 percent (compared with a 13 percent decline as reported).

Finance income and expense

Net interest and dividend expense for the third quarter was $134 million (2006
income: $81 million) and $19 million expense (2006 income: $227 million) for the
first nine months. The decrease versus last year is primarily attributable to
the interest payable on the borrowings to acquire MedImmune, Inc., being $191
million in the third quarter and $243 million in total. The reported amounts
include net income of $5 million (2006: $11 million) in the third quarter, and
$21 million (2006: $35 million) in the nine months, arising from employee
benefit fund assets and liabilities reported under IAS 19, 'Employee Benefits'.

Taxation

The effective tax rate for the third quarter is 28.4 percent (2006: 27.2
percent) and for the nine months is 29.2 percent (2006: 28.3 percent). For the
full year the tax rate is anticipated to be around 29 percent.

Cash Flow

Free cash flow (net cash generated and available for acquisitions or
distribution to shareholders) for the nine months was $3,607 million, compared
to $4,793 million in 2006.

Cash generated from operating activities was $4,512 million, $1,021 million
lower than in 2006. The decrease is primarily due to an increase in working
capital requirements of $885 million and additional tax payments of $698
million, offset by higher non-cash movements, principally in relation to
severance provisions, of $438 million.

Net cash outflows from investing activities were $14,460 million in the period,
compared to $557 million in 2006 chiefly due to cash outflows from acquisitions
of $14,814 million in the period (MedImmune, Inc. and Arrow Therapeutics
Limited).

Returns to shareholders were $5,773 million (through net share repurchases of
$3,132 million and dividends of $2,641 million).

Investments

In August, the Company paid $34 million to acquire the paediatric asthma
business of Verus Pharmaceuticals, Inc. which includes the North American rights
to CyDex Captisol(R)-enabled budesonide solution and a proprietary albuterol
formulation. The acquisition of these programmes will further strengthen
AstraZeneca's position as a leader in the field of paediatric asthma.



In September, the Company paid a further milestone of $30 million under the
collaboration agreement with POZEN, Inc. to develop a fixed-dose combination
product containing esomeprazole and naproxen, for the treatment of pain. The
milestone was in relation to the execution of the revised agreement and
recognition of successful proof of concept.



In September, the Company's Astra Tech Group announced the acquisition of
Atlantis Components, Inc. for $71 million. The acquisition was completed on 10
October. The intangible asset acquired is the specialist CAD/CAM technology used
to design and manufacture customised dental implant abutments, which further
strengthens Astra Tech's product portfolio in the field of dental implants.



In October, the Company decided, by mutual agreement, to end its collaboration
with NPS Pharmaceuticals, Inc. to discover and develop drugs targeting
metabotropic glutamate receptors (mGluRs). The Company has agreed to pay $30
million to acquire NPS's assets relating to the collaboration.



Core Earnings per Share

Management believes that investors' understanding of the Company's performance
is enhanced by the disclosure of Core EPS, as it provides an understanding of
the underlying ability to generate returns to shareholders.  The Core EPS
measure is adjusted to exclude certain significant items, such as charges and
provisions related to restructuring and synergy programmes, amortisation of the
significant intangibles arising from corporate acquisitions and those related to
our current and future exit arrangements with Merck in the US, and other
specified items.  Core EPS is not, and should not be viewed as, a substitute for
EPS in accordance with IFRS.

The reconciliation of third quarter and nine months Core EPS to reported
earnings per share is provided below:


                                                3rd        3rd       CER      Nine Months  Nine Months       CER
                                            Quarter    Quarter
                                                                       %             2007         2006         %
                                               2007       2006

Reported EPS                                  $0.91      $1.01       -13            $2.88        $2.93        -4

Restructuring Costs                           $0.06          -       n/a            $0.28            -       n/a

Amortisation of intangible assets
  MedImmune acquisition                       $0.05          -       n/a            $0.07            -       n/a
  Merck arrangements                          $0.02      $0.02       n/a            $0.05        $0.05       n/a

Core EPS                                      $1.04      $1.03        -2            $3.28        $2.98        +8





Debt and Capital Structure

During September, approximately $7.9 billion in debt was raised in the debt
capital markets to re-finance short term debt taken on to fund the acquisition
of MedImmune, Inc.  The re-financing consisted of a $6.9 billion 4-tranche SEC
Global issue and a €750 million Eurobond, issued off a new Euro Medium Term Note
Programme.  The details are as follows:



•          $650 million Floating Rate Notes due 2009

•          $1,750 million 5.4% Notes due 2012

•          $1,750 million 5.9% Notes due 2017

•          $2,750 million 6.45% Notes due 2037

•          €750 million 5.125% Notes due 2015



As at 30 September 2007, outstanding gross debt (including loans and short-term
borrowings) is $14,314 million, of which $8,994 million is long-term (greater
than 12 months). Outstanding net debt is $10,867 million.



Share Repurchase Programme

During the third quarter, 22.6 million shares were re-purchased for cancellation
at a total cost of $1,134 million bringing the total re-purchases for the year
to date to 61.6 million shares at a total cost of $3,294 million. Shares issued
during the year to date were 3.5 million in consideration of share option
exercises for a total of $162 million.

The total number of shares in issue at 30 September 2007 was 1,474 million.

The share re-purchase programme is calculated to have added 6 cents to EPS for
the year to date after allowing for an estimate of interest income foregone.



R&D Update

During the quarter the Company announced that two additional compounds have
progressed to Phase III development, bringing the total number of projects in
Phase III to ten.  The two progressions were:

•  PN400, a new pain product, under co-development with POZEN, Inc., for the treatment of pain in patients who
   require chronic NSAID therapy and are at risk for NSAID related ulcers.




•  CrestorTM/ABT-335, a fixed dose combination of AstraZeneca's CrestorTM and Abbott's next generation
   fenofibrate.  This single pill should have beneficial effects by reducing LDL and triglycerides whilst
   increasing HDL over and above that achieved by the individual components.




Seroquel XRTM was approved in the Netherlands on 29 August; the Company will now
seek similar approvals across Europe utilising the Mutual Recognition Procedure.
  Seroquel XRTM was also approved in Canada on 27 September.



Calendar
7 December 2007     Business Review - Biologics
31 January 2008     Announcement of fourth quarter and full year 2007 results




David Brennan
Chief Executive Officer


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