Interim Results - Part 2

ASTRAZENECA PLC
3 August 1999

Part 2

Consolidated Profit and Loss Account

                             Continuing Operations
                                 Before
                            Exceptional Exceptional Discontinued
For the six months ended          Items       Items   Operations       Total
30 June 1999          Notes        USDm        USDm         USDm        USDm
---------------------------       -----       -----        -----       -----

Sales                     7       9,043           -          615       9,658
Cost of sales                    (2,768)        (10)        (380)     (3,158)
Distribution costs                 (167)          -          (29)       (196)
Research and development         (1,312)         (5)         (43)     (1,360)
Selling, general and
  administrative expenses        (2,778)       (127)         (94)     (2,999)
Other income                         85           -            2          87
---------------------------       -----       -----        -----       -----

Group operating profit    7       2,103        (142)          71       2,032
Share of joint ventures'
  and associates'
   operating profits      3          22           -            1          23
Profits less losses on
  sale and closure of
   operations             4           -           -          237         237
Merger costs              4           -        (917)           -        (917)
Net interest                        (33)          -            -         (33)
---------------------------       -----       -----        -----       -----

Profit on ordinary
  activities before
   taxation                       2,092      (1,059)        309       1,342
Taxation                           (624)        238        (122)       (508)
---------------------------       -----       -----       -----       -----

Profit on ordinary
  activities after taxation       1,468        (821)         187         834
Attributable to minorities           (2)          -            -          (2)
---------------------------       -----       -----        -----       -----

Net profit for the period         1,466        (821)         187         832
Dividends to Shareholders          (408)          -            -        (408)
---------------------------       -----       -----        -----       -----

Profit retained for the
  period                          1,058        (821)         187         424
---------------------------       -----       -----        -----       -----

Earnings per Ordinary Share
  before exceptional items      USD0.83           -      USD0.02     USD0.85
Earnings per Ordinary Share     USD0.83    USD(0.46)     USD0.10     USD0.47
Diluted earnings per
  Ordinary Share                USD0.83    USD(0.46)     USD0.10     USD0.47
---------------------------       -----       -----        -----       -----

Weighted average number of
  Ordinary Shares in issue
   (millions)                                                          1,776
---------------------------                                            -----

Diluted average number of
  Ordinary Shares in issue
   (millions)                                                          1,780
---------------------------                                            -----

The interim financial statements on pages 8 to 21 were approved by the Board
on 2 August 1999.


Pro Forma* Consolidated Profit and Loss Account

                             Continuing Operations
                                 Before
                            Exceptional Exceptional Discontinued
For the six months ended          Items       Items   Operations       Total
30 June 1998                       USDm        USDm         USDm        USDm
---------------------------       -----       -----        -----       -----

Sales                             8,096           -          672       8,768
Cost of sales                    (2,512)          -         (419)     (2,931)
Distribution costs                 (166)          -          (33)       (199)
Research and development         (1,191)          -          (41)     (1,232)
Selling, general and
  administrative expenses        (2,377)          -         (103)     (2,480)
Other income                         88           -            2          90
---------------------------       -----       -----        -----       -----

Group operating profit            1,938           -           78       2,016
Share of joint ventures'
  and associates' operating
   profits                           23           -            2          25
Profits less losses on sale
  and closure of operations           -           -          (46)        (46)
Net interest                        (27)          -            -         (27)
---------------------------       -----       -----        -----       -----

Profit on ordinary
  activities before
   taxation                       1,934           -           34       1,968
Taxation                           (601)          -          (16)       (617)
---------------------------       -----       -----        -----       -----

Profit on ordinary
  activities after taxation       1,333           -           18       1,351
Attributable to minorities            3           -            -           3
---------------------------       -----       -----        -----       -----

Net profit for the period         1,336           -           18       1,354
Dividends to Shareholders          (220)          -            -        (220)
---------------------------       -----       -----        -----       -----

Profit retained for the
  period                          1,116           -           18       1,134
---------------------------       -----       -----        -----       -----

Earnings per Ordinary Share
  before exceptional items      USD0.75           -      USD0.03     USD0.78
Earnings per Ordinary Share     USD0.75           -      USD0.01     USD0.76
Diluted earnings per
  Ordinary Share                USD0.75           -      USD0.01     USD0.76
---------------------------       -----       -----        -----       -----

Weighted average number of
  Ordinary Shares in issue
   (millions)                                                          1,778
---------------------------                                            -----

Diluted average number of
  Ordinary Shares in issue
   (millions)                                                          1,782
---------------------------                                            -----

*  See Basis of Pro Forma Figures described in Note 2.


Consolidated Profit and Loss Account

                             Continuing Operations
                                 Before
                            Exceptional Exceptional Discontinued
For the six months ended          Items       Items   Operations       Total
30 June 1998          Notes        USDm        USDm         USDm        USDm
---------------------------       -----       -----        -----       -----

Sales                     7       6,381           -          672       7,053
Cost of sales                    (1,861)          -         (419)     (2,280)
Distribution costs                 (158)          -          (33)       (191)
Research and development         (1,113)          -          (41)     (1,154)
Selling, general and
  administrative expenses        (1,879)          -         (103)     (1,982)
Other income                         88           -            2          90
---------------------------       -----       -----        -----       -----

Group operating profit    7       1,458           -           78       1,536
Share of joint ventures'
  and associates'
   operating profits      3         559           -            2         561
Profits less losses on
  sale and closure of
   operations             4           -           -          (46)        (46)
Net interest                         38           -            -          38
---------------------------       -----       -----        -----       -----

Profit on ordinary
  activities before
   taxation                       2,055           -           34       2,089
Taxation                           (636)          -          (16)       (652)
---------------------------       -----       -----        -----       -----

Profit on ordinary
  activities after
   taxation                       1,419           -           18       1,437
Attributable to minorities            3           -            -           3
---------------------------       -----       -----        -----       -----

Net profit for the period         1,422           -           18       1,440
Dividends to Shareholders          (220)          -            -        (220)
---------------------------       -----       -----        -----       -----

Profit retained for the
  period                          1,202           -           18       1,220
---------------------------       -----       -----        -----       -----

Earnings per Ordinary
  Share before exceptional
   items                        USD0.80           -      USD0.03     USD0.83
Earnings per Ordinary
  Share                         USD0.80           -      USD0.01     USD0.81
Diluted earnings per
  Ordinary Share                USD0.80           -      USD0.01     USD0.81
---------------------------       -----       -----        -----       -----

Weighted average number of
  Ordinary Shares in issue
   (millions)                                                          1,778
---------------------------                                            -----

Diluted average number of
  Ordinary Shares in issue
   (millions)                                                          1,782
---------------------------                                            -----


Consolidated Balance Sheet

                                                           30 June    31 Dec
                                                              1999      1998
                               Notes                          USDm      USDm
------------------------------------                         -----     -----

Fixed assets
Tangible fixed assets                                        5,689     6,281
Goodwill and intangible assets                               3,959     2,440
Fixed asset investments                                        225       353
------------------------------------                         -----     -----

                                                             9,873     9,074
------------------------------------                         -----     -----

Current assets
Stocks                                                       1,906     2,029
Debtors                                                      4,587     3,963
Cash and short-term investments    6                         3,264     3,412
------------------------------------                         -----     -----

                                                             9,757     9,404
------------------------------------                         -----     -----

Total assets                                                19,630    18,478
------------------------------------                         -----     -----

Creditors due within one year
Short-term borrowings and current
  instalments of loans             6                          (678)     (377)
Other creditors                                             (5,274)   (5,273)
------------------------------------                         -----     -----

                                                            (5,952)   (5,650)
------------------------------------                         -----     -----

Net current assets                                           3,805     3,754
------------------------------------                         -----     -----

Total assets less current
  liabilities                                               13,678    12,828
------------------------------------                         -----     -----

Creditors due after more than one
  year
Loans                              6                          (749)     (761)
Other creditors                                               (509)      (40)
Provisions for liabilities and
  charges                                                   (1,224)   (1,045)
------------------------------------                         -----     -----

                                                            (2,482)   (1,846)
------------------------------------                         -----     -----

Net assets                                                  11,196    10,982
------------------------------------                         -----     -----

Capital and reserves
Shareholders' funds - equity
  interests                        5                        11,145    10,929
Minority equity interests                                       51        53
------------------------------------                         -----     -----

Shareholders' funds and minority interests                  11,196    10,982
------------------------------------                         -----     -----


Statement of Total Recognised Gains and Losses

                                                              1999      1998
For the six months ended 30 June                              USDm      USDm
------------------------------------                         -----     -----

Net profit for the period                                      832     1,440
Exchange adjustments on net assets                            (491)       (3)
Translation differences on foreign
  currency borrowings                                           (5)        7
Tax on translation differences on
  foreign currency borrowings                                    -        (2)
Other movements                                                 (6)        2
------------------------------------                         -----     -----

Total recognised gains and losses
  relating to the period                                       330     1,444
------------------------------------                         -----     -----


Consolidated Cash Flow Statement

                                                              1999      1998
For the six months ended 30 June                              USDm      USDm
------------------------------------                         -----     -----

Cash flow from operating activities
Operating profit before exceptional
  items                                                      2,174     1,536
Depreciation                                                   378       311
Amortisation                                                   142        57
Increase in working capital                                   (853)     (762)
Other non-cash movements                                       136       (50)
------------------------------------                         -----     -----

Net cash inflow from operating
  activities before exceptional
   items                                                     1,977     1,092
Outflow related to exceptional items                          (997)      (41)
------------------------------------                         -----     -----

Net cash inflow from operating
  activities                                                   980     1,051
------------------------------------                         -----     -----

Dividends received from joint
  ventures and associates                                        3       262
------------------------------------                         -----     -----

Returns on investments and servicing
  of finance                                                   (49)       56
------------------------------------                         -----     -----

Tax paid                                                      (550)     (280)
------------------------------------                         -----     -----

Capital expenditure and financial
  investment
Net cash expenditure on fixed assets                        (1,830)     (713)
New fixed asset investments                                      -       (18)
------------------------------------                         -----     -----

                                                            (1,830)     (731)
------------------------------------                         -----     -----

Acquisitions and disposals                                   1,945      (400)
------------------------------------                         -----     -----

Equity dividends paid to
  Shareholders                                                (800)     (772)
------------------------------------                         -----     -----

Net cash outflow before management
  of liquid resources and financing                           (301)     (814)
------------------------------------                         -----     -----

Management of liquid resources
Movement in short-term investments
  and fixed deposits (net)                                  (1,011)      428
------------------------------------                         -----     -----

Financing                                                      324       234
------------------------------------                         -----     -----

Decrease in cash in the period                                (988)     (152)
------------------------------------                         -----     -----


Exceptional and Merger related cash
 flows included above:                                        USDm
------------------------------------                         -----

Merger and integration expenditure
Merck 'Trigger Event' payment                                 (713)
Other merger and integration costs                            (284)
------------------------------------                         -----

Outflow related to exceptional items                          (997)
'First Option' payment to Merck
  (included in 'Net cash expenditure
   on fixed assets')                                          (967)
Proceeds from the disposal of
  Specialties business (included in
   'Acquisitions and disposals')                             1,937
------------------------------------                         -----

                                                               (27)
------------------------------------                         -----


Independent Review Report to AstraZeneca PLC by KPMG Audit Plc and Deloitte
& Touche

Introduction

We have been instructed by the company to review the financial information
set out on pages 8 to 21, and we have read the other information contained
in the interim report and considered whether it contains any apparent
misstatements or material inconsistencies with the financial information.

Directors' responsibilities

The interim report, including the financial information contained therein,
is the responsibility of, and has been approved by, the directors.  The
Listing Rules of the London Stock Exchange require that the accounting
policies and presentation applied to the interim figures should be
consistent with those applied in preparing the preceding annual accounts
except where any changes, and the reasons for them, are disclosed.

Review work performed

We conducted our review in accordance with guidance contained in Bulletin
1999/4 issued by the Auditing Practices Board.  A review consists
principally of making enquiries of group management and applying analytical
procedures to the financial information and underlying financial data and
based thereon, assessing whether the accounting policies and presentation
have been consistently applied unless otherwise disclosed.  A review
excludes audit procedures such as tests of controls and verification of
assets, liabilities and transactions.  It is substantially less in scope
than an audit performed in accordance with Auditing Standards and therefore
provides a lower level of assurance than an audit.  Accordingly, we do not
express an audit opinion on the financial information.

Review conclusion

On the basis of our review we are not aware of any material modifications
that should be made to the financial information as presented for the six
months ended 30 June 1999.


KPMG Audit Plc                                             Deloitte & Touche
Chartered Accountants                                  Chartered Accountants
London                                                                London

2 August 1999                                                  2 August 1999


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