Collaboration with BMS

AstraZeneca PLC
11 January 2007



AstraZeneca and Bristol-Myers Squibb Announce Worldwide Collaboration To Develop
And Commercialise Diabetes Compounds


   Deal A Significant Step In Strengthening AstraZeneca's Late Stage Pipeline
         Partnership Aligned with Bristol-Myers Squibb Company Strategy


AstraZeneca and Bristol-Myers Squibb Company (NYSE:BMY) ('companies') today
announced a collaboration to develop and commercialise two investigational
compounds being studied for the treatment of Type 2 diabetes.   Both compounds
were discovered by Bristol-Myers Squibb.


Saxagliptin, a dipeptidyl peptidase-4 (DPP-4) inhibitor, is currently in Phase
III development.  Upon successful completion of the development programme, the
companies plan to file for U.S. regulatory approval of saxagliptin during the
first half of 2008.   Dapagliflozin (previously referred to as BMS-512148), a
sodium-glucose cotransporter-2 (SGLT2) inhibitor, is currently in Phase IIb
development.  The collaboration on these compounds is worldwide, except for
Japan.  Should either party develop additional DPP-4 or SGLT2 compounds, the
other company can elect to add those compounds to the collaboration.


Terms of the agreements include an upfront payment of $100 million by
AstraZeneca to Bristol-Myers Squibb.  The companies have agreed upon initial
development plans for the two compounds.  From 2007 through 2009, the majority
of development costs will be funded by AstraZeneca.  Any additional development
costs will be shared equally.  In aggregate, this sharing of R&D cost is
expected to increase AstraZeneca's R&D to sales ratio in 2007 by around 0.5
percent and in 2008 by approximately 1 percent.


Bristol-Myers Squibb may also receive additional payments of up to $650 million
based on development and regulatory milestones for the two compounds.  In
addition, potential sales milestones up to $300 million per product are also
possible.  The companies will jointly develop the clinical and marketing
strategy of the compounds, and post-launch will share commercialisation expenses
and profits/losses equally on a global basis, excluding Japan.  Bristol-Myers
Squibb will manufacture both products and book sales.


David Brennan, Chief Executive Officer of AstraZeneca said, 'Diabetes is a
disease reaching almost epidemic proportions in many regions throughout the
world and is a particular area of scientific interest for AstraZeneca.  This
deal represents a significant step in delivering our externalisation strategy as
it gives us access to two strategically important late stage compounds in an
area of high unmet medical need.  We believe that Bristol-Myers Squibb's
recognised contributions to diabetes research will complement our existing
strengths.  Additionally, our combined expertise will develop new areas of
opportunity for both companies and the potential to bring real medical benefit
to the wider community.'


'This collaboration provides Bristol-Myers Squibb the opportunity to maximize
our primary care assets, and it is aligned with our corporate strategy to
concentrate R&D efforts on serious diseases such as diabetes while maintaining
commercial focus on specialists and high prescribing primary care physicians,'
said Jim Cornelius, Chief Executive Officer, Bristol-Myers Squibb.  '
Bristol-Myers Squibb has a strong legacy in treating Type 2 diabetes and
cardiovascular disease, and we look forward to leveraging the combined expertise
of our company and AstraZeneca to further develop and commercialise these
compounds.'


About Diabetes

Diabetes is a disease in which the body does not produce or properly use
insulin.  Insulin is a hormone needed to carry glucose (sugar) from the blood
into cells, where it is converted to energy the cells need to perform properly.
When insulin is not present or does not function correctly, the result is high
levels of glucose in the blood.  Over time, high blood glucose levels can lead
to complications in the eyes, kidneys, central nervous system or heart.


Type 2 diabetes is the most common form of diabetes, accounting for
approximately 90-95 percent of diabetes cases.  Having Type 2 diabetes increases
the risk of many serious complications, including heart disease or stroke, high
blood pressure, amputation (particularly legs), blindness, nerve damage, and
kidney failure.  The risk of stroke and the rate of deaths due to heart disease
are two to four times higher among people with diabetes, while about 65 percent
of deaths among people with diabetes are due to heart disease and stroke.


The American Diabetes Association (ADA) estimates that more than 20 million
people in the United States, or 7 percent of the population, have diabetes, and
that one in three Americans born in 2000 will develop diabetes sometime during
their lifetime.  There are currently more than 230 million people living with
diabetes worldwide.  The objective of treating diabetes is to control blood
glucose to as normal a level as possible.  This can be accomplished by a
combination of diet, exercise and medication.


About Saxagliptin and Dapagliflozin

Saxagliptin is a dipeptidyl peptidase-4 (DPP-4) inhibitor, a new class of
diabetes medicines that work by increasing and prolonging the action of natural
hormones in the body called incretins.  Incretins decrease blood sugar by
increasing consumption of sugar by the body, mainly through increasing insulin
production in the pancreas, and by reducing production of sugar by the liver.
By enhancing the effect of active incretin hormones in the body, DPP-4
inhibitors improve timely insulin release and ultimately decrease high blood
sugar levels in patients with Type 2 diabetes.


Dapagliflozin is a sodium glucose cotransporter-2 (SGLT2) inhibitor.  The SGLT2
transporter protein is located only in the kidney, where it normally reabsorbs
glucose from urine while waste products are filtered out.  Patients with Type 2
diabetes continue to reabsorb glucose from the urine, even though this process
contributes to high blood glucose levels, or hyperglycemia.  Dapagliflozin has a
novel mechanism of action that blocks re-absorption of glucose from urine in
patients with Type 2 diabetes.  Inhibiting SGLT2 activity decreases
re-absorption of glucose by the kidney, helping to improve glucose control in
patients with Type 2 diabetes.


About AstraZeneca

AstraZeneca is a major international healthcare business engaged in the
research, development, manufacture and marketing of prescription pharmaceuticals
and the supply of healthcare services.  It is one of the world's leading
pharmaceutical companies with healthcare sales of $23.95 billion and leading
positions in sales of gastrointestinal, cardiovascular, neuroscience,
respiratory, oncology and infection products.  AstraZeneca is listed in the Dow
Jones Sustainability Index (Global) as well as the FTSE4 Good Index.   AZ has
over 40 years experience in cardiovascular medicine, with a powerful range of
products including Atacand, a hypertension medication, Seloken ZOK, a leader in
its class of beta blockers and CRESTOR, for the treatment of high cholesterol
levels.


About Bristol-Myers Squibb

Bristol-Myers Squibb is a global pharmaceutical and related healthcare products
company whose mission is to extend and enhance human life.


11 January, 2007


AstraZeneca Contacts:

Media Enquiries:

Edel McCaffrey,                     Tel: [phone]

Steve Brown,                        Tel: [phone]



Investor Relations:

Mina Blair,                         Tel: [phone]

Jonathan Hunt,                      Tel:  [phone]

Jorgen Winroth,                     Tel: [phone]

Ed Seage,                           Tel:  [phone]



Bristol-Myers Squibb Contacts:

Media Enquiries:

Jeff Macdonald,                     Tel: [phone]

Tony Plohoros,                      Tel: [phone]



Investor Relations:

John Elicker,                       Tel: [phone]

Blaine Davis,                       Tel: [phone]



                                -Ends-


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