Annual Business Review

AstraZeneca PLC
06 October 2004





ASTRAZENECA CONFIDENT OF STRONG PERFORMANCE FROM GROWTH PRODUCTS AND DELIVERY OF
                              DEVELOPMENT PIPELINE



AstraZeneca will today express confidence in its future prospects at its annual
business review meeting in London and will update analysts on:



•          The global performance of recently launched key brands that will
drive sales and earnings growth in the near term, including CRESTOR, NEXIUM,
SEROQUEL, SYMBICORT and IRESSA.

•          Phase III programmes for CEROVIVE and GALIDA, which are both
progressing well.

•          28 New Molecular Entity (NME) projects in Phase I and Phase II
development; 60 percent more in Phase II than a year ago.

•          23 high-quality NMEs now in pre-clinical testing as a result of
improved productivity in drug discovery.

•          A growing presence in emerging markets as another important source of
sales and profit growth. AstraZeneca is now the fastest growing major
pharmaceutical company in the top eight emerging markets.

•          270 R&D collaboration agreements with external partners signed in the
past year.



Sir Tom McKillop, Chief Executive, said: 'With $10 billion in annual sales of
newer products growing strongly, good progress across the development portfolio
and success in emerging markets, AstraZeneca is well-positioned to overcome the
recent disappointment on EXANTA and to meet the wider challenges facing the
industry.'



The company will also confirm that it remains on track to deliver EPS for 2004
around the middle of the $2.00 to $2.15 range announced at the beginning of the
year.



Business Highlights:

•          CRESTOR is approved in 64 countries and launched in 51 markets, with
approval in Japan anticipated before the end of Q4 2004.

•          Since launch, more than 10 million prescriptions have been dispensed
to over three million patients.

•          Extensive post-marketing surveillance continues to show that the
safety profile for CRESTOR remains comparable to other marketed statins.

•          CRESTOR continues to grow in an increasingly competitive US market.
Its share of new prescriptions reached 7.5 percent in the week ending 24th
September.



•          Since its launch in 2000, NEXIUM has grown to become the world's
sixth largest pharmaceutical product (MAT Q2 2004 - $4.2 billion).

•          The global Proton Pump Inhibitor (PPI) market is currently valued in
excess of $20 billion and has grown 7.2 percent MAT, as of Q2 2004.  NEXIUM
value growth in the same period was 36.8 percent.  With strong continued growth
in many large markets, such as France, Italy and Germany, NEXIUM is expected to
become the leading branded PPI by value in 2005.

•          Despite challenging market conditions, including pricing pressure in
the US and Europe, new formulations and indications should help sustain growth.

•          The NEXIUM intravenous (i.v.) formulation is now being launched in
Europe and US approval is expected in early 2005.  This should further
strengthen the brand's position on hospital formularies.

•          New indications for the healing and prevention of NSAID-associated
ulcers have already cleared the EU Mutual Recognition procedure, with approval
in the US and other markets anticipated in the coming months.



•          SEROQUEL continues to drive expansion of the atypical antipsychotic
market in Europe and the US, with a growth rate strongly ahead of the rest of
the market.

•          In the US, SEROQUEL is set to become the market leading antipsychotic
product in total prescriptions.  Market share gains in other major markets have
accelerated since the launch of the bipolar mania indication.

•          The BOLDER study demonstrates that SEROQUEL is effective in treating
people with bipolar disorder and new, recently presented data, shows additional
benefit for the rapid cycling population - a treatment-resistant group.
Regulatory submissions for bipolar depression in the US are expected during
first half 2006 and Europe in 2007.



•          SYMBICORT is approved in 78 countries and is launched in 62. It
continues to gain share from its chief competitor, Seretide/Advair in the market
for fixed combination asthma treatments.

•          Two recent clinical studies comparing SYMBICORT with salmeterol/
fluticasone have shown impressive results:

o        The SUND study, showed superiority of SYMBICORT Adjustable Maintenance
Dosing versus a fixed dose of either SYMBICORT or salmeterol/ fluticasone.

o        Data from COSMOS, a new trial, show superiority of SYMBICORT Single
inhaler Therapy over fixed dosing of salmeterol/ fluticasone.

•          The application for SYMBICORT Single inhaler Therapy in Europe is
under regulatory review, as are pMDI filings for asthma and COPD.

•          In the US, the company has completed its asthma trials and the first
New Drug Application (NDA) for asthma is targeted for Q2 2005, followed by a
supplementary NDA for COPD in 2007.



•          EXANTA is the first new oral anticoagulant in almost 60 years.

•          EXANTA's first indication (prevention of venous thromboembolic events
in elective knee and hip replacement surgery) was approved in May 2004 in the EU
and the first launch took place in Germany in June 2004, followed by Sweden,
Portugal, Finland, Norway, Iceland and Austria.  It is now launched in seven
countries and approved in 12 markets.

•          At its meeting on 10th September, the Cardiovascular Renal Committee
to the US Food and Drug Administration (FDA) did not recommend approval of
EXANTA.  AstraZeneca is continuing discussions with the Agency and awaits a
final decision.   The FDA's Prescription Drug User Fee Act (PDUFA) 10-month
deadline is 23rd October 2004.



•          IRESSA is approved in 32 countries, including Japan and the US.
Discussions with the regulatory authorities in Europe are ongoing.

•          In April, Massachusetts General Hospital (MGH) and the Dana Farber
Institute in the US released breakthrough research identifying mutations in the
tyrosine kinase domain of the EGFR gene in the tumour cells of many Non-Small
Cell Lung Cancer (NSCLC) patients who responded to IRESSA.  However, published
reports and emerging analyses from the IDEAL trials indicate that some patients
with a dramatic response to treatment with IRESSA do not appear to possess a
mutation in the EGFR receptor.  Furthermore, mutational status does not explain
the stable disease and symptomatic benefit seen by nearly 50 percent of patients
treated with IRESSA.

•          According to US monthly prescription data, prescriptions have
increased by 25 percent since this new EGFR mutation data was announced.

•          Comparative trials of IRESSA in refractory NSCLC are on track for
delivery early in 2005 and the lifecycle programme for IRESSA in NSCLC and other
tumours is well underway.

•          Phase III trials are underway in refractory patients with head and
neck tumours, (vs. methotrexate), with filings in the US and Europe anticipated
in H2 2006. Another Phase II, first-line patient study using IRESSA in
combination with chemo-radiation has begun, with results anticipated in 2008.

•          For advanced breast cancer, Phase II studies using IRESSA plus
hormonal treatments (tamoxifen and ARIMIDEX), are underway, with results
anticipated 2006/7.

•          A Phase II study involving first-line patients with colorectal cancer
is ongoing, with results anticipated in 2006.

•          Exploratory trials are underway in oesophageal, pancreatic,
glioblastoma, ovarian and thyroid tumour types, with data emerging.



•          ARIMIDEX: The five-year analysis from the ARIMIDEX, Tamoxifen, Alone
or in Combination (ATAC) study will be presented at the San Antonio Breast
Cancer Congress in December 2004 and should confirm the position of ARIMIDEX as
a 'gold standard' treatment for early breast cancer.



Development Pipeline and New Indications

In addition to reviewing the performance of key growth products, the company
will provide an update on its development pipeline.  It will also confirm
continuing progress with GALIDA and CEROVIVE, which are in Phase III clinical
testing and will report that 28 NME projects are now in Phase I/II, an increase
of nine over last year.  Of these, 15 projects are currently in Phase I and 13
projects are currently in Phase II.



There are 23 NMEs in pre-clinical testing.  To broaden its therapeutic
approaches and enhance its capability to discover novel differentiated
treatments, the company has signed 270 new R&D collaborations with external
parties in the past year, bringing the total number of active agreements in
place to more than 1700.



Cardiovascular

In the US, it is estimated that one in three individuals born in 2000 will
develop type 2 diabetes during their lifetime.  By 2025 there will be twice as
many diabetics in South East Asia compared to North America.  The future market
value for type 2 diabetes (including the insulin market) is forecast to be
greater than $18 billion by 2012 in the top seven markets.  Over the next 30
years, the prevalence of atrial fibrillation is expected to double worldwide and
the anti-thrombotic market is expected to reach $15 billion by 2010.  Diabetes,
atrial fibrillation and thrombosis are all targets for AstraZeneca.



•GALIDA is currently in Phase III testing for type 2 diabetes mellitus. A PPAR
alpha-gamma agonist, GALIDA has demonstrated metabolic effects including
improvement in both glycemic control as well as dyslipidaemia.  Further data
supports the potential for GALIDA to prevent macrovascular complications.

•Following worldwide regulatory authority review of the safety and toxicology
for the entire PPAR class, AstraZeneca has agreed to extend long-term follow up
clinical studies to two years, resulting in the filing date moving from 2006
into 2007.

•AZD6140: now in Phase II testing, has been shown in early studies to be a more
effective platelet inhibitor than clopidogrel.  In contrast to the latter, its
effects are rapidly reversible, allowing acute invasive or surgical treatment
for patients, if needed.   AstraZeneca is targeting treatment of patients with
coronary artery disease.

•AZD7009: an atrial repolarisation delaying agent (ARDA), has a novel mechanism
of action with unique separation of effects on the atrium and ventricle of the
heart. It restores normal heartbeat in patients with atrial fibrillation in a
dose dependent way. AZD7009 is now in Phase II testing.  Two formulations are
currently being developed: the i.v. formulation for atrial fibrillation
conversion and the oral formulation for chronic treatment.

•AZD0837: an oral direct thrombin inhibitor follow-up to EXANTA is in Phase II
studies that will determine its overall efficacy and safety profile.

•AZD9684: a CPU inhibitor for the treatment of thrombosis is in Phase II trials.



Neuroscience

AstraZeneca aims to be a leader in neuroscience, by continuing to deliver a
range of life-changing medicines in the three key areas of psychiatry, analgesia
and neurology.  The neuroscience market is currently estimated to be worth over
$85 billion.

•          CEROVIVE: (NXY-059) is a neuroprotectant with free radical trapping
properties acting at several points in the acute cerebral ischemic cascade.  It
is in phase III clinical trials to determine its effect on disability and
neurological recovery in acute ischemic stroke patients.

•          AZD1080: an inhibitor of neurofibillary tangle formation to modify
the progression of Alzheimer's disease pathology, is currently in pre-clinical
testing.

•          AZD3102: a human monoclonal antibody for the modification of
Alzheimer's disease progression, developed in collaboration with Dyax, is in
pre-clinical development.

•          AZD7371: a serotonin modulator with the potential to relieve symptoms
of overactive bladder is in Phase II clinical exploration.

•          AZD4282:  a modulator of NMDA receptor for the treatment of
neuropathic pain is presently in Phase I clinical studies.

•          AZD9272: a novel neuropathic pain treatment, discovered in
collaboration with NPS pharmaceuticals, has shown some highly promising
sustained analgesic effects in pre-clinical models.



Oncology

AstraZeneca aims to maintain its position as a world leader in cancer treatment
through the successful introduction of novel approaches, with candidate drugs
currently in the pipeline.  The company has over 20 different anti-cancer
projects, including 13 NMEs in its portfolio.  The company intends to build a
leading position in cell cycle inhibitiors, anti-invasives, and
anti-angiogenics, building on its current strong portfolio.  Discovery
investment is focused on increasing the number of candidate drugs and providing
strong translational science support to products in late stage Discovery and
Development.  As a result of the company's collaboration with Abgenix Inc.,
antibodies will be part of the development portfolio from 2006. The oncology
market is estimated to reach $64 billion by 2014.



•          ZD6474: a potent, once daily oral inhibitor of vascular endothelial
growth factor receptor (VEGFR) signalling, has additional activity against
epidermal growth factor receptor (EGFR) signalling.  Currently in Phase II
development, ZD6474 is approaching completion of trials as monotherapy (vs.
IRESSA) and in combination with cytotoxic chemotherapy.



•          AZD2171: a once daily, oral inhibitor of vascular endothelial growth
factor receptor (VEGFR) signalling.  Highly potent, without activity against
EGFR, the compound is currently in Phase I development and has potential for
activity in a wide range of tumours, as well as for combining with other
anti-cancer agents.  The first presentation of pre-clinical data for AZD2171 was
made earlier this year at the AACR Meeting in Orlando and showed that continuous
once daily, oral treatment with AZD2171 is generally well-tolerated in patients
with advanced cancers and liver metastases.

•          New data evaluating AZD2171 in combination with mechanistically
distinct anti-tumour therapies demonstrate that, when administered in
combination, AZD2171 and the EGFR tyrosine kinase inhibitor gefinitib produce
greater inhibition of tumour growth in vulval tumour xenografts than with each
treatment alone.

•          Emerging Phase I clinical data support the pre-clinical data
indicating that AZD2171 has the potential to be 'best in class'.

•          AZD4054: a specific endothelin-A receptor antagonist has Phase II
trials underway in hormone resistant prostate cancer (HRPC).  Phase I trial
results indicate no antagonism of endothelin-B receptor, which is important
since pro-apoptotic signalling is driven through this receptor.

•          AZD3409:  an oral, selective prenyltransferase inhibitor, has
potential in numerous tumour types.  Phase I trials in volunteers have shown
inhibition of laminin and K-ras prenylation.  The latter data are important for
differentiation.  Phase I trials in patients started in March 2004.

•          AZD6244:  a potent and selective oral MEK inhibitor, is biologically
active in patients and in a wide range of human tumour xenografts, at doses that
are well-tolerated.

•          AZD5438: a Cyclin Dependent Kinase (CDK) inhibitor went from CD
nomination to first human dose in five months with proof of mechanism in healthy
volunteers within 12 months of nomination.  It is now in patient trials.

•          AZD1152: an Aurora Kinase Inhibitor for solid tumours disrupts
mitosis and cellular division in tumour cells and patient trials are set to
start Q2 2005.

•          AZD0530: a highly selective, oral, once-daily selective SRC kinase
inhibitor with potential for activity in a wide range of tumours.  It has the
potential to have a significant impact on the treatment of cancer and has a
range of potential therapeutic benefits, including: an anti-invasive and
anti-metastatic agent; use in combination treatments with other novel agents,
chemotherapy and hormonal therapy; and in the treatment of leukaemia and
metastatic bone disease.   Phase I studies are ongoing and proof of mechanism
has been demonstrated (markers of bone resorption).



Gastrointestinal

AstraZeneca aims to maintain its number one position in GI treatments through
high quality innovation and productivity in the research and development of new
GI therapies.

•          AZD0865: a novel gastric acid inhibitor is currently in Phase II and
is being investigated for acid-related GI disease.

•          AZD7371: a serotonin modulator, has the potential to relieve visceral
hypersensitivity in patients with irritable bowel syndrome and is currently in
Phase II.



Respiratory and Inflammation (R&I)

The successful introduction of novel approaches to areas of inflammatory disease
such as asthma, COPD and rheumatoid arthritis aim to build the company's
position in R&I, a world market estimated to be worth over $30 billion.  The
rheumatoid arthritis market alone is estimated to reach $10 billion by 2012.



•          AZD8309: a chemokine receptor antagonist, is in Phase I for
rheumatoid arthritis and COPD.

•          AZD3342: a protease inhibitor, is in pre-clinical testing for COPD.

•          AZD3778: a chemokine receptor antagonist, is in Phase I for asthma /
rhinitis.

•          AZD6703: treats inflammatory diseases by inhibiting p38 kinase, a
mechanism linked to a variety of inflammatory diseases.  This compound has
improved pre-clinical safety margins compared to competitor compounds.

•          AZD9056: a P2X7 ion channel blocker, has multiple inflammatory
disease applications.  It is now in Phase II for rheumatoid arthritis and
osteoarthritis and in Phase I for COPD.



Dr Jan M Lundberg, Head of Global Discovery Research, said:  'Through our
efforts to increase our productivity and quality in Discovery and Early
Development, I am pleased to report excellent progress over the past 12 months.
With around 50 percent more projects at Phase I and II compared to last year, we
have every reason to be optimistic about the future.'



Emerging Markets

AstraZeneca will highlight the growing importance of emerging markets as a
source of sales and profit growth.  Since 2001, the company has added more than
2000 sales representatives and 500 other new staff to strengthen its position in
emerging markets.  AstraZeneca is now the fastest growing major pharmaceutical
company in the top eight emerging markets, with an annual growth rate of 25
percent since 2002.



Top priorities for AstraZeneca are Mexico and China, which according to IMS are
ranked as the ninth and tenth largest pharmaceutical markets respectively.



The pharmaceutical market in Mexico is worth nearly $10 billion, three quarters
of which is in the private market.  AstraZeneca has doubled its sales in Mexico
since 2001, to nearly $200 million in 2003.  Leadership positions have been
achieved in gastrointestinal, cardiovascular and hospital antibiotic therapeutic
areas.  CRESTOR was launched in Mexico in June of last year, and is close to
achieving market leadership in volume terms.



China's pharmaceutical market is worth $7.4 billion, up 20 percent in 2003.
This market is projected to exceed $23 billion by 2012.  AstraZeneca is ranked
number one in the hospital market for prescription drugs.  Sales in the first
half 2004 were $98 million.  AstraZeneca sales have grown at an average annual
rate of 34 percent over the last two and a half years.



Dr Dong Yin, Vice-President, Strategic Planning and Marketing, AstraZeneca
China, said: 'This is an extremely dynamic market for AstraZeneca.  We have the
right strategy and the ability to deliver profitably, which is reflected by the
fact that we are one of the fastest growing multinational companies in China.'



                                     -Ends-



07.45 (BST) Wednesday 6th October 2004



Trade Marks

The following brand names are trademarks of the AstraZeneca group of companies:

EXANTA, NEXIUM, SYMBICORT, IRESSA, GALIDA, CEROVIVE, CRESTOR, SEROQUEL,
ARIMIDEX.



Media Enquiries:

Steve Brown [phone]

Edel McCaffrey [phone]

Rachel Bloom-Baglin [phone]





Analyst Enquiries:

Mina Blair [phone]

Jonathan Hunt [phone]



Notes to Editors:

For copies of the presentations from today's annual business review and an
up-date copy of AstraZeneca's development pipeline please visit
www.astrazenecaevents.com from 07.45 BST on Wednesday 6th October 2004.
Interviews with Sir Tom McKillop Chief Executive, Dr Jan M Lundberg, Head of
Global Research, Brent Vose, VP Head of Oncology and Infection TA and Dr Dong
Yin, Vice President, Strategic Planning and Marketing, AstraZeneca China, will
be available in video, audio and text on: www.astrazenecaevents.com or
www.cantos.com from 08.00 BST.  Photos of Sir Tom McKillop and Dr Jan M Lundberg
are available on www.newscast.co.uk. Broadcast footage of AstraZeneca products
and activities is available on www.thenewsmarket.com/astrazeneca.



CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

In order to utilise the 'Safe Harbor' provisions of the United States Private
Securities Litigation Reform Act of 1995, AstraZeneca is providing the following
cautionary statement.  This Review contains forward-looking statements with
respect to the financial condition, results of operations and businesses of
AstraZeneca.  By their nature, forward-looking statements and forecasts involve
risk and uncertainty because they relate to events and depend on circumstances
that will occur in the future.  There are a number of factors that could cause
actual results and developments to differ materially from that expressed or
implied by these forward-looking statements.  These factors include, among other
things, the loss or expiration of patents, marketing exclusivity or trade marks;
exchange rate fluctuations; the risk that R&D will not yield new products that
achieve commercial success; the impact of competition; price controls and price
reductions; taxation risks; the risk of substantial product liability claims;
the impact of any failure by third parties to supply materials or services; the
risk of delay to new product launches; the difficulties of obtaining and
maintaining governmental approvals for products; and the risk of environmental
liabilities.




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            The company news service from the London Stock Exchange