Acquisition

AstraZeneca PLC
01 February 2007



               AstraZeneca Acquires Arrow Therapeutics To Broaden

                          Anti-Infective Capabilities


AstraZeneca today announced an agreement to acquire Arrow Therapeutics Ltd., a
privately owned UK biotechnology company, focused on the discovery and
development of anti-viral therapies. The total share capital of Arrow
Therapeutics will be purchased for $150m cash, subject to debt and working
capital adjustment. The transaction is expected to close early in 2007.


The deal is an important strategic step for AstraZeneca, strengthening its
portfolio of promising anti-infective treatments from external opportunities and
providing a widely recognised expert group and technology platform in an area of
research that complements internal capabilities in anti-bacterials.   The deal
also fits with AstraZeneca's decision to re-focus its disease area research with
infection and anti-bacterials now one of the company's key therapy areas.


The anti-viral programmes developed by Arrow Therapeutics, include several
different approaches towards Hepatitis C Virus (HCV) and Respiratory Syncytial
Virus (RSV).


The acquisition of Arrow Therapeutics augments AstraZeneca's portfolio with
clinical and pre-clinical compounds and programmes. These assets include two
anti-HCV compounds which both target the novel NS5a protein, including A-831 in
Phase I.   Arrow's most advanced compound is RSV604, currently in Phase II
clinical development and partnered with Novartis. RSV604 is a first-in-class,
small molecule, oral anti-RSV compound.


John Patterson, Executive Director, Development, AstraZeneca, said:  'Arrow
Therapeutics is an excellent opportunity to acquire a world-class anti-viral
capability to add to our own anti-bacterial research capabilities and promising
early stage compounds. AstraZeneca is determined to focus on areas of highest
unmet needs and we have identified anti-bacterials and anti-virals as a key
opportunity.'


Jan Lundberg, Executive Vice President of Discovery, AstraZeneca, added:  'We
intend to utilise the best of both organisations with an innovation-led culture
paramount; we'll look to preserve the entrepreneurial culture of Arrow
Therapeutics, while at the same time gaining the benefits available to us from
applying the breadth and depth of AstraZeneca's global capabilities.'


Ken Powell, CEO of Arrow Therapeutics, said: 'We are delighted to join
AstraZeneca, which has a proven track record in successfully enhancing its
research capabilities by the acquisition of smaller biotechnology companies. Our
scientists are looking forward to working within the AstraZeneca research
framework. We will be helping to build a complementary anti-viral franchise by
utilising the resources of AstraZeneca to realise the full potential of the
Arrow Therapeutics programmes and to develop a major pipeline of new anti-viral
medicines. We are very excited about this opportunity for our team who have made
such an important contribution to the success of Arrow Therapeutics.'


Arrow Therapeutics currently has 57 employees at its facility in London, UK.
AstraZeneca's immediate plans are for Arrow Therapeutics to become a hub for
anti-viral discovery activities remaining at its present central London site.


The urgent need for novel Hepatitis C inhibitors has been well documented, with
an estimated 170 million sufferers worldwide. The current Standard of Care
treatment (Pegylated Interferon + ribavirin) has a poor side effect profile and
is only effective in around 50 per cent of patients. As with HIV/AIDS, multiple
drugs in combination therapy are likely to be needed to overcome drug
resistance. The value of the Hepatitis C market was approximately $2.2 billion
in 2005 and is forecast to grow substantially to $4.4 billion in 2010 and $8.8
billion in 2015.


RSV is a major threat to the very young, the elderly and the immuno-compromised
and with no other effective treatment available represents a major unmet medical
need. Although best known as an infection in babies where it causes severe
bronchiolitis, a recent editorial in the New England Journal of Medicine has
also stressed its significant effects in the elderly. RSV is also implicated in
many asthma & COPD attacks.  Currently, the only widely used intervention is
MedImmune's monoclonal antibody, Synagis (palivizumab), which is used to prevent
infection in high risk infants. However, this antibody is used in a small
percentage of babies and although it is only effective given prior to infection
(unlike a treatment therapy) it has reached sales of 'blockbuster' proportions
and proven the RSV market.


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 over $23.95 billion and
leading positions in sales of gastrointestinal, cardiovascular, respiratory,
oncology and infection and neuroscience products. AstraZeneca is listed in the
Dow Jones Sustainability Index (Global) as well as the FTSE4Good Index.


Arrow Therapeutics was founded in 1998, and is focused exclusively on novel
antiviral drug discovery and development.  Based in central London with 57
employees, the product pipeline includes novel antiviral lead and clinical
compounds. Arrow's lead compound RSV604 to treat Respiratory Syncytial Virus
(RSV) is in Phase ll clinical studies and is partnered with Novartis.  The
Hepatitis C programme consists of multiple series from different chemical
classes. The most advanced compounds inhibit NS5a, a novel viral target (for
more detail on NS5a please see www.arrowt.co.uk). The lead compound, A-831, is
currently in Phase I trials and A-689, a compound from the second NS5a series,
has just entered preclinical development. Arrow also has a Hepatitis C
polymerase programme in lead optimisation. Its current shareholders include
investment funds represented by Atlas Venture, Alta Partners, 3i, GIMV, ITX,
Merlin BioMed Group, NIF, Northern Venture Managers, Scottish Widows Investment
Partnership, TVM Capital and Unibio.


1 February 2007


Media Enquiries:

Edel McCaffrey,     Tel: [phone]

Steve Brown,        Tel: [phone]



Investor Enquiries:

Mina Blair,         Tel: [phone]

Jonathan Hunt,      Tel: [phone]

Karl Hard,          Tel: [phone]

Ed Seage,           Tel: [phone]

Jorgen Winroth,     Tel + 1 212 579 0506

Arrow Therapeutics:


Ken Powell, Chief Executive Officer,             Tel: [phone]

Annie Clayton, Investor Relations and Marketing, Tel: [phone]


Capital MS&L

Mary Clark - Director Life Sciences              Tel: [phone].

Astrid Josephson - Consultant                    Tel: [phone].


-Ends-


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