Q1 Results - Part 1 of 2

AstraZeneca PLC
26 April 2001

AstraZeneca PLC

First Quarter Results 2001

              'First Quarter Results in Line with Expectations'

Financial Highlights (before Exceptional Items)
Group                              1st Quarter        1st Quarter      Constant

(Continuing operations*)                  2001               2000      Currency

                                            $m                 $m             %
Sales                                    3,991              3,892            +7
Operating Profit                         1,055                976           +12
Profit before Tax                        1,110              1,017           +12
Earnings per Share
Group                                    $0.45              $0.41           +12
Group (Statutory FRS3)                   $0.44              $0.41

* Excluding Agrochemicals from prior period

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


  * Nexium(R) launch continues to fully meet expectations. Excellent
    progress has been made in Europe, and the early response to the US launch
    on 19 March is very promising.

  * Strong growth in Japan (up 26 per cent) fuelled by new product launches.

  * US regulatory approvals were received for Toprol-XL(R) in congestive
    heart failure, and for Zomig-ZMTTM fast melt tablet for migraine.

  * First regulatory filings made for Casodex(R) in the treatment of early
    prostate cancer and for Faslodex(R) for second line treatment of advanced
    breast cancer.

  * A further three important new chemical entities to be filed this year:
    CrestorTM for the treatment of elevated cholesterol, ViozanTM for chronic
    obstructive pulmonary disease, and IressaTM for the treatment of non-small
    cell lung cancer.

Tom McKillop, Chief Executive Officer, said: ' First quarter results are in
line with our expectations and with targets for the full year. Products in
their growth phase continue to do well and good progress is being made towards
realising the full potential of our exciting development portfolio.'



London, 26 April 2001
Media Enquiries:             Steve Brown (London)            [phone]
                             Staffan Ternby (Sodertalje)     [phone]
                             Rachel Bloom (Wilmington)       [phone]
Analyst/Investor Enquiries:  Michael Olsson (London)         [phone]
                             Staffan Ternby (Sodertalje)     [phone]
                             Ed Seage (Wilmington)           [phone]
                             Jorgen Winroth (Wayne)          [phone]





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

Sales increased by 7 per cent and operating profits were up by 12 per cent in
the first quarter. The strength of the US dollar reduced reported sales and
operating profits by 4 per cent each. Earnings per share (before exceptional
items) rose by 12 per cent to $0.45.

Excluding the GI franchise, sales grew by 10 per cent, with good performances
in Cardiovascular, Respiratory and CNS products, particularly Seroquel(R),
more than offsetting the anticipated generic erosion of Diprivan(R). Total GI
sales were up 2 per cent, with sales of Nexium(R), benefiting from trade
stocking for the USA launch, more than offsetting a slight decline in Losec(R)
/Prilosec(R). The Nexium(R) launch programme continues to go well. Good
progress is being made in Europe and the initial uptake in the USA is very
encouraging. Whilst early prescription data should be viewed with caution,
Nexium(R) has achieved a 3.0% share of new prescriptions in the US PPI market
in the week ending 13 April with momentum building. This is in line with our
high aspirations for the product.

Progress continues both on the new product pipeline and on important life
cycle initiatives for our current growth products. The USA submission of the
Faslodex(R) NDA on 29 March for second line treatment of advanced breast
cancer was the first of four planned filings for important new chemical
entities this year, to be followed by CrestorTM, ViozanTM, and IressaTM. The
presentation of Phase III data for CrestorTM generated great interest at the
American College of Cardiology meeting in March. In the USA the FDA approved
Toprol-XL(R) for use in congestive heart failure and the fast-melt formulation
of Zomig(R) for migraine. In Oncology, the first data from the Casodex(R)
Early Prostate Cancer programme were presented and formed the basis of the
first registration package submitted on 28 March in the UK.

Performance for the first quarter is consistent with delivery of the targets
for the year announced in February, that is mid single digit sales growth with
earnings slightly ahead of this. The quarterly pattern, however, will be
uneven. In particular the comparison with a strong second quarter in 2000 and
heavy R&D and launch costs will mean a decline in the second quarter
compensated by a stronger second half.







Disclosure Notice: The preceding forward looking statements relating to
expectations for earnings and business prospects for the Company 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 timing of the launch of generic omeprazole in the USA, the
successful registration and launch of new products (in particular Nexium(R)
and CrestorTM), continued growth of currently marketed products, the growth in
costs and expenses, the amount of net interest income earned on the Group's
cash balances, exchange rate fluctuations, and further improvements in the tax
rate. For further details on these and other risks and uncertainties, see the
Company's Securities and Exchange Commission filings, including the 2000
annual report on Form 20-F.



 Sales

All narrative in this section refers to the first quarter unless otherwise
indicated. Growth rates are at constant currency

Gastrointestinal
                                                  First Quarter          CER %
                                                    2001      2000
Losec(R)/Prilosec(R)                               1,495     1,588          -3
Nexium(R)                                             81         -           -
Total                                              1,588     1,599          +2


  * Nexium(R) has now been launched in 12 markets to date. Good progress
    continues in the early launch markets in Europe. The USA launched Nexium
    (R) on March 19, and the initial uptake is very encouraging and well in
    line with our high aspirations.

  * As Nexium(R) has only been in the US market for two weeks in the
    quarter, the Prilosec(R) ex-factory sales trend is independent of any
    Nexium(R) launch effect. Prilosec(R) sales in the quarter were down 7 per
    cent (in contrast to total prescriptions, which were up 3 per cent). March
    signalled the beginning of wholesaler destocking of inventories which were
    built late last year in response to a competitor's price increase and
    continued into the first quarter. Thus, a weaker second quarter is
    expected as this inventory continues to be worked through.

  * Pre-trial proceedings are essentially complete for the first four
    defendants in the US patent litigation for Prilosec(R). The first trial
    date has been set for 29 May in New York.

  * Outside of the USA, sales of Losec(R) were up 3 per cent in Europe;
    whilst in Japan, sales were doubled (off a small base) on encouraging
    response to the launch of the long term maintenance indication and the 10
    mg tablet.


Cardiovascular
                                                   First Quarter         CER %
                                                     2001     2000
Zestril(R)                                            294      276         +11
Atacand(R)                                             83       56         +59
Seloken(R)/Toprol-XL(R)                               151      106         +49
Plendil(R)                                            106      115          -3
Total                                                 835      794         +11


  * The continued roll out of Atacand(R) Plus/ Atacand(R) HCT fuelled good
    growth in Atacand(R) across all major markets.

  * Worldwide sales of Zestril(R) increased by 11 per cent, as sales in the
    USA rebounded from the artificially low fourth quarter of 2000. In the
    USA, Zestril(R) market share continues to hold steady at 24 per cent
    despite the launch of generic enalapril and sales are expected to continue
    to grow in line with prescription demand. The ex-factory growth rate in
    the USA next quarter is expected to show a decline against the record
    trade shipments reported in Q2 2000.

  * Seloken(R)/Toprol-XL(R) sales were up on strong US sales growth (up 118
    per cent). Prescription growth in the USA remains robust at over 30 per
    cent, but the exceptional ex-factory growth rate is against an unusually
    low Q1 2000. The launch of the indication for congestive heart failure on
    2 April should drive continued growth for the product.



Respiratory
                                          First Quarter                  CER %
                                            2001           2000
Pulmicort(R)                                 200            174            +22
Accolate(R)                                   49             55             -9
Rhinocort(R)                                  56             41            +42
Oxis(R)                                       32             27            +30
Symbicort(R)                                   3              -              -
Total                                        381            345            +18


  * Pulmicort(R) sales continue to be driven by the performance in the USA,
    particularly Pulmicort(R) Respules(R). Competitive pressures continue to
    erode sales outside of the US.

  * Rhinocort(R) Aqua performance in the USA was the main contributor to the
    worldwide growth of the Rhinocort(R) franchise.

  * Symbicort(R) continues to challenge Seretide(R) in Sweden, its first
    launch market, gaining a 30 per cent share of the combination market in
    the first quarter. The broader roll out has begun; the German launch
    occurred on 2 April, with some twenty markets in total expected by year
    end.

Oncology
                                         First Quarter                   CER %
                                           2001           2000
Casodex(R)                                  115            115              +5
Arimidex(R)                                  43             37             +24
Nolvadex(R)                                 139            139              +3
Zoladex(R)                                  160            167              +3
Total                                       464            465              +5


  * For Casodex(R), continued strong growth was achieved in Japan and in
    Europe. In the USA, where Casodex(R) market share is now over 70 per cent,
    prescription growth for Casodex(R) continues in an otherwise maturing
    market for combination therapy for advanced prostate cancer. The 26 per
    cent decline in reported sales in the USA is a function of the strong
    first quarter of 2000 where 35 per cent of the full year's sales were
    realised.

  * The first filing for Casodex(R) in the treatment of early prostate
    cancer occurred in the UK at the end of March, with further submissions,
    including the USA, expected later this year. This new indication will
    drive growth in the future.

  * Arimidex(R) grew by 24 per cent and remains the market leading aromatase
    inhibitor. The product continues to respond to the new indication for the
    first line treatment of advanced breast cancer.

  * Reported sales of Nolvadex(R) this quarter in the USA (up 3 per cent)
    lag the prescription growth of nearly 10 per cent, indicating some further
    destocking.



CNS
                                         First Quarter                   CER %
                                           2001           2000
Seroquel(R)                                 189             82            +132
Zomig(R)                                     66             65              +5
Total                                       257            155             +69


  * The attractive product profile of Seroquel(R) continues to be reflected
    in excellent growth in prescription demand in the USA (total prescriptions
    up 64 per cent). Reported US sales (up 117 per cent) are well ahead of
    this underlying demand and therefore include some trade inventory build.
    Encouraging sales development following last year's launches in Italy and
    Germany continues. The launch in Japan by our licensee Fujisawa took place
    in February of this year.

  * In the US migraine market, the triptan class prescription growth has
    eased to low double digits; Zomig(R) prescription growth was in line with
    this. Reported US sales declined by 9 per cent against the year ago
    quarter which was characterised by wholesaler stock building. Outside the
    USA sales were up 33 per cent.

  * Now launched in eighteen markets, Zomig(R) Rapimelt(R) continues to
    perform well; it was launched last week in the USA as Zomig-ZMT TM.

Pain, Infection and other pharma
                                          First Quarter                  CER %
                                            2001           2000
Merrem(R)                                     49             36            +44
Diprivan(R)                                  107            164            -31
Xylocaine(R)                                  47             54             -7
Marcaine(R)                                   19             21             -5
Total                                        364            430            -10


  * Diprivan(R) sales are down; the decline in the USA is a result of
    generic competition but also against an unusually strong prior year
    quarter.

  * Good growth in Europe and continued recovery of sales in the USA drove
    Merrem(R) performance.

Geographic
                                   First Quarter                          CER %
                                     2001                2000
USA                                 2,139               2,021                +6
Europe                              1,291               1,328                +7
Japan                                 178                 156               +26
RoW                                   383                 387                +4


  * In the USA sales grew by 15 per cent excluding the GI franchise, with
    strong growth in Cardiovascular (up 20 per cent), Respiratory (up 53 per
    cent) and CNS (up 68 per cent).

  * In Europe, strong performances in France, Italy, and improved
    performance in Germany more than offset weakness in Spain and Sweden.

  * The strong growth in Japan was a result of continued growth in Casodex
    (R), the new maintenance indication for Losec(R), and by the launches of
    Seroquel(R), Arimidex(R) and Accolate(R) in February.

Operating Profit

Group operating profit before exceptional items grew by 12 per cent to $1,055
million for the quarter.

The operating margin increased from 25.1 per cent in the first quarter of 2000
to 26.4 per cent, partly due to higher other income, which included a gain of
$64 million on the disposal of the dental anaesthetics product range, offset
by increased R&D and selling costs.

Synergy benefits of $210 million were recorded in the first quarter.

Exchange effects reduced sales and profits by 4 per cent each in the quarter
as a result of the strength of the US dollar against the Euro and yen, which
more than offset the benefits against Sterling and the Swedish krona.

The continued strength of the dollar will reduce reported profits for the full
year. If current exchange rates remain constant through the balance of the
year, we project that reported EPS will be reduced by around five cents per
share, which is an additional three cents per share from the projection made
in February.

Interest

The Group recorded net interest income of $55 million (2000: $19 million). The
net interest position has continued to improve as a result of the Group's
strong positive cash flows.

Taxation

The effective tax rate for the first quarter, before exceptional items, was
28.5 per cent compared to 29.0 per cent for continuing operations for the
first quarter 2000.

Cash Flow

Cash generated from operating activities before exceptional items amounted to
$1.4 billion for the quarter. This was used to fund capital expenditures of
$0.3 billion, exceptional items costs of $0.1 billion and to pay taxes of
$0.08 billion. Net cash inflow before financing transactions and the share
repurchase programme was $0.9 billion. At 31 March 2001 the Group had net
funds of $4.3 billion.

Share Repurchase Programme

During the first quarter 3.9 million Ordinary Shares (nominal value $0.25
each) were purchased for cancellation for an aggregate sum of $174 million,
giving an average cost of $44.71 per share. We expect the programme of share
buybacks to continue as part of a structured process of balance sheet
management and shareholder return.

The total number of shares repurchased for cancellation since the start of the
programme in December 1999 stands at 17.6 million at an aggregate cost of $710
million. The total number of shares in issue (as at 31 March 2001) was 1,764
million.

Upcoming Milestones and Key Dates
Second Quarter        CrestorTM NDA/MAA submissions
26 July               Half Year Results
24 October            Nine Months and Third Quarter Results

Tom McKillop

Chief Executive Officer