R&D Guidance Note

AstraZeneca PLC
17 December 2004







                CLINICAL AND REGULATORY CHANGES AT ASTRAZENECA-

                GUIDANCE FROM SIR TOM McKILLOP, CHIEF EXECUTIVE



AstraZeneca is committed to the development of innovative medicines but Exanta
and Iressa, two products based on breakthrough science, have suffered setbacks.



Following the non-approval of Exanta by FDA, we accelerated a significant
programme of change in the development and regulatory functions, based on the
learning from these and other experiences.  Today's announcement of John
Patterson's appointment to the Board as Executive Director responsible for
DeveIopment is a further step in this process.  John Patterson is highly
experienced in clinical and regulatory development and has been closely
associated with the development of a number of successful products, including
our oncology portfolio and Seroquel.  He is also widely experienced in the
industry, in development and all facets of product strategy.



I have charged John with overseeing in particular:

  • The design and implementation of all clinical and regulatory programmes
    with emphasis on rigorous risk assessment and risk management;
  • Implementation of substantial changes to the clinical organisation and its
    processes;
  • The improvement of our regulatory capability and our effectiveness in
    interactions with regulatory authorities.



AstraZeneca has always set out to deliver sustainable shareholder value.  These
recent disappointments set in a more hostile environment towards pharmaceutical
stocks, have resulted in a substantial loss of value.  I am determined to
improve our development and regulatory performance, restore confidence in the
company and value to shareholders.





The company is financially strong and is both committed to and capable of
delivering good earnings growth derived from its existing growth portfolio,
coupled with rigorous cost management.  Particular emphasis is being given to:



  • Productivity across all business areas to underpin margin improvement; and
  • Maximising underlying free cash flow to enhance potential shareholder
    return.



Financial performance in 2004 remains strong and the company reiterates earnings
per share guidance for the year of $2.10 or a little better, before exceptional
items or any provisions for Iressa assets or additional charges relating to
Exanta, should it not gain approval in France.



I will provide an update on the progress we are making as a part of the Annual
Results presentation on 27th January 2005.



                                     -ends-



11.01 GMT Friday 17th December



Media Enquiries:

Edel McCaffrey, Tel: [phone]

Steve Brown, Tel: [phone]



Investor Enquiries:

Mina Blair, Tel: [phone]

Jonathan Hunt, Tel:  [phone]






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