1st Quarter Results - 1 of 2

AstraZeneca PLC
27 April 2006





AstraZeneca PLC

First Quarter Results 2006

'A strong first quarter, with sales up 12 percent and Earnings per Share up 40 
percent.  Targets for the full year increased.'

Financial Highlights

  Group                         1st Quarter   1st Quarter     Actual     CER
                                       2006          2005          %       %
                                         $m            $m
  Sales                               6,180         5,743         +8     +12

  Operating Profit                    1,976         1,453        +36     +33

  Profit before Tax                   2,044         1,486        +38     +35

  Earnings per Share                  $0.90         $0.63        +42     +40

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


•   First quarter sales increased by 12 percent to $6,180 million and operating profit increased by 33 percent to
    $1,976 million.
•   Free cash flow before acquisitions of $1,336 million in the first quarter.  Share repurchases totalled $564
    million.
•   Combined sales of 5 key growth products (NexiumTM, SeroquelTM, CrestorTM, ArimidexTM and SymbicortTM)
    increased by 25 percent.
•   NexiumTM sales were $1,189 million in the first quarter, up 16 percent.
•   SeroquelTM sales were $807 million in the first quarter, up 29 percent.
•   CrestorTM sales were $387 million in the first quarter, up 45 percent.  Data from the ASTEROID study presented
    on 13 March demonstrated that treatment with 40mg of CrestorTM reversed plaque build-up in the arteries of
    patients with evidence of coronary artery disease.
•   ArimidexTM sales were $335 million in the first quarter, up 38 percent.
•   SymbicortTM sales were $277 million in the first quarter, up 21 percent.
•   The Company now anticipates EPS for 2006 in the range of $3.60 to $3.90.  This includes around 33 cents of
    earnings relating to Toprol-XLTM for the remaining eight months of 2006.
•   On 27 April, the Company announced an agreement with Abraxis BioScience Inc. to co-promote their cancer
    therapy product ABRAXANE in the US.  In addition to the co-promotion agreement for ABRAXANE, AstraZeneca also
    announced the divestment of its US anaesthetic and analgesic products to Abraxis BioScience.





David Brennan, Chief Executive Officer, said:  'The momentum we have generated
in our business is evident in the strong first quarter sales growth of 12
percent.    This, coupled with continued cost discipline, has resulted in
another strong quarterly earnings performance, with EPS up 40 percent.  This
outcome gives us confidence for the remainder of the year, and we have increased
our financial targets.  We continue to pursue attractive external opportunities
to strengthen our business, such as today's agreement with Abraxis BioScience to
co-promote their cancer therapy product ABRAXANE in the US market.'

London, 27 April 2006





Media Enquiries:              Steve Brown/Edel McCaffrey (London)          [phone]/5034
                              Staffan Ternby (Sodertalje)                  (8) 553 26107
                              Rachel Bloom-Baglin (Wilmington)             [phone]

Analyst/Investor Enquiries:   Mina Blair (London)                          [phone]
                              Jonathan Hunt (London)                       [phone]
                              Staffan Ternby (Sodertalje)                  (8) 553 26107
                              Ed Seage/Jorgen Winroth (US)                 [phone]/[phone]






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



Sales in the first quarter increased 12 percent at CER, or 8 percent on an as
reported basis (including a 4 percent adverse impact from currency movements).
Sales outside the US were up 9 percent, including 10 percent sales growth in
Europe.  Sales in the US in the first quarter were up 15 percent as a result of
good prescription growth and a positive effect from price changes occurring
earlier this year compared to 2005.



Combined expenditures in R&D and SG&A were up 10 percent at CER (4 percent as
reported), including a 9 percent increase in R&D.   Operating profit was up 33
percent to $1,976 million.  First quarter operating margin was 32.0 percent
compared with 25.3 percent in the first quarter of 2005.  Earnings per share in
the first quarter were $0.90 compared with $0.63 in 2005, an increase of 40
percent.



The combined sales of five key growth products (NexiumTM, SeroquelTM, CrestorTM,
ArimidexTM and SymbicortTM) grew by 25 percent in the first quarter to $2,995
million.



NexiumTM sales were $1,189 million in the first quarter, up 16 percent.  Sales
in the US were up 14 percent on strong dispensed tablet volume growth (up 18
percent), partially offset by lower realized prices.  NexiumTM sales outside the
US were up 17 percent.



CrestorTM sales in the first quarter were $387 million, up 45 percent.  Sales in
the US were up 43 percent.  CrestorTM share of new prescriptions in the US
statin market was 8.6 percent in the week ending 14 April.  Sales in other
markets increased by 46 percent.  Data from the ASTEROID clinical trial was
presented at the American College of Cardiology meeting on 13 March, which
demonstrated that treatment with 40mg of CrestorTM reversed plaque build-up in
the arteries of patients with evidence of coronary artery disease.



Three other key growth products also experienced strong sales growth in the
first quarter: SymbicortTM (up 21 percent), ArimidexTM(up 38 percent) and
SeroquelTM (up 29 percent).





Future Prospects



The strong first quarter earnings stem from good sales performance and margin
expansion.  Investment to strengthen the pipeline, drive product performance and
continue our geographic expansion, remains a priority.  With this first quarter
performance and the outlook for the remainder of the year, the Company has
increased its earnings target.  The Company now anticipates earnings per share
in the range of $3.60 to $3.90.



Included in this target, for the remaining eight months of the year, is around
33 cents of earnings relating to Toprol-XLTM.  This represents the maximum
potential impact to earnings from Toprol-XLTM should generic companies receive
final regulatory approval and seek to launch 'at risk' before the conclusion of
the judicial appeals process.  This potential impact excludes any one-time asset
or inventory adjustments that may be required.



The impact of the agreements with Abraxis BioScience Inc. for the co-promotion
of ABRAXANE in the US and the divestment of the Company's US anaesthetics
products fall within the bounds of the above guidance.




Disclosure Notice:  The preceding forward-looking statements relating to
expectations for earnings and business prospects for AstraZeneca PLC 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: when and if a generic competitor to Toprol-XLTM were introduced in
the US market prior to completion of Appellate Court process, the rate of growth
in sales of generic omeprazole in the US, continued growth in currently marketed
products (in particular CrestorTM, NexiumTM, SeroquelTM, SymbicortTM, ArimidexTM
and CasodexTM), the growth in costs and expenses, interest rate movements,
exchange rate fluctuations and the tax rate.  For further details on these and
other risks and uncertainties, see AstraZeneca PLC's Securities and Exchange
Commission filings, including the 2005 Annual Report on Form 20-F.




Sales

All narrative in this section refers to growth rates at constant exchange rates
(CER) unless otherwise indicated.  All sales numbers are quoted in $ million.

Gastrointestinal
                                              First Quarter               CER %
                                           2006          2005
NexiumTM                                  1,189         1,055               +16
LosecTM/ PrilosecTM                         344           427               -15
Total                                     1,551         1,499                +6


•   In the first quarter, US sales for NexiumTM were up 14 percent to $791 million.  Total prescriptions in the US
    PPI market increased by 6 percent, fuelled by growth for omeprazole products (up 22 percent) and for NexiumTM
    (up 16 percent).  All other major brands experienced declines in total prescriptions in the first quarter
    compared to last year.  Dispensed tablet volume for NexiumTM was up 18 percent in the quarter.


•   Sales of NexiumTM in other markets were up 17 percent to $398 million on good growth in France and Italy.


•   PrilosecTM sales in the US were down 8 percent in the first quarter.  Sales of LosecTM in other markets were
    down 16 percent, although sales in Japan were up 9 percent.



Cardiovascular
                                              First Quarter               CER %
                                           2006          2005
SelokenTM / Toprol-XLTM                     456           408               +13
CrestorTM                                   387           273               +45
AtacandTM                                   254           235               +14
PlendilTM                                    72            93               -20
ZestrilTM                                    75            87                -8
Total                                     1,390         1,257               +15


•   Sales of Toprol-XLTM in the US were up 21 percent in the first quarter.  Total prescriptions were up 12
    percent; Toprol-XLTM share of total prescriptions increased to 29.2 percent of the US beta-blocker market in
    March.


•   On 16 February 2006, the Company announced that it has filed a Notice with the US District Court for the
    Eastern District of Missouri of its appeal to the Court of Appeals for the Federal Circuit of the 17 January
    2006 decision declaring two patents that cover Toprol-XLTM invalid and unenforceable.  The Company maintains
    that both patents, which are due to expire on 17 September 2007, are valid and enforceable.


•   Sales of SelokenTM in other markets declined by 6 percent in the first quarter.


•   In the US, CrestorTM sales in the first quarter were $220 million (up 43 percent).  New and total
    prescriptions in the US statin market grew at double-digit rates in the first quarter.  CrestorTM share of new
    prescriptions in the US statin market was 8.6 percent in the week ending 14 April.  Market share in the
    dynamic segment (new and switch patients) was 12.7 percent in the latest week.


•   CrestorTM sales in other markets were up 46 percent to $167 million in the first quarter.  Sales in Europe
    were up 52 percent, on continued good growth in France and Italy. Volume share of the statin market for
    CrestorTM is now 14.1 percent in Canada; 11.2 percent in the Netherlands; 15.9 percent in Italy; and 7.5
    percent in France.


•   US sales for AtacandTM were up 4 percent in the first quarter; total prescriptions were unchanged.  AtacandTM
    sales in other markets increased by 16 percent.


•   PlendilTM sales in the first quarter were down 20 percent as a result of generic competition in the US market,
    where sales declined by 73 percent.



Respiratory and Inflammation
                                              First Quarter               CER %
                                           2006          2005
PulmicortTM                                 328           314                +7
SymbicortTM                                 277           247               +21
RhinocortTM                                  85            92                -7
OxisTM                                       22            23                +5
AccolateTM                                   18            28               -36
Total                                       765           746                +8


•   PulmicortTM sales in the first quarter were up 7 percent, as US sales for PulmicortTM RespulesTM were up 21
    percent, offset by a decline of 9 percent in sales of PulmicortTM in other markets.
•   Sales of SymbicortTM in the first quarter were up 21 percent to $277 million.
•   Sales of RhinocortTM were down 7 percent as a result of a 9 percent decline in the US in the first quarter.



Oncology
                                              First Quarter               CER %
                                           2006          2005
ArimidexTM                                  335           256               +38
CasodexTM                                   274           277                +6
ZoladexTM                                   231           231                +6
IressaTM                                     50            81               -34
FaslodexTM                                   44            29               +55
NolvadexTM                                   21            28               -18
Total                                       958           905               +12


•   ArimidexTM continued its strong performance in the first quarter, with sales up 38 percent to $335 million.
    Total prescriptions in the US were up 29 percent compared with last year, and market share of total
    prescriptions was up another one percentage point over December 2005 levels.  US sales in the first quarter
    were up 27 percent.  There was a small amount of inventory destocking in the current quarter.


•   CasodexTM sales in the US were up 6 percent in the first quarter; total prescriptions were unchanged.  Casodex
    TM sales in other markets also increased by 6 percent.


•   ZoladexTM sales grew by 6 percent, as a 25 percent decline in the US was more than offset by the 12 percent
    sales increase in other markets.


•   Sales for IressaTM in the Asia Pacific region increased by 7 percent in the first quarter.  Sales in the US
    were $4 million compared with $30 million in the first quarter 2005.


•   Sales of FaslodexTM in the first quarter were up 25 percent in the US, and increased by 122 percent in other
    markets as a result of good uptake in Europe since marketing approval in March 2004.



Neuroscience
                                              First Quarter               CER %
                                           2006          2005
SeroquelTM                                  807           633               +29
ZomigTM                                      93            68               +43
Total                                     1,136           952               +22


•   SeroquelTM sales in the US were up 29 percent in the first quarter to $590 million.  Total prescriptions in
    the US were up 14 percent in the quarter.  Pricing and favourable rebate adjustments also contributed to the
    reported growth.  Sales growth in the quarter was also affected by wholesaler stocking in the first quarter
    2005.


•   The sNDA seeking approval in the US for SeroquelTM in the treatment of patients with depressive episodes
    associated with bipolar disorder is under regulatory review.


•   SeroquelTM sales in other markets increased by 31 percent, on strong growth in Europe (up 41 percent).
•   ZomigTM sales outside the US were down 3 percent in the first quarter.  US sales in the first quarter 2006
    were $40 million, compared with just $9 million in supply sales to Medpointe in the first quarter last year in
    anticipation of the end of the distribution agreement on 31 March 2005.



Geographic Sales
                                         First Quarter                 CER %
                                      2006           2005
US                                   2,882          2,500                +15
Europe                               2,172          2,165                +10
Japan                                  304            337                 +1
RoW                                    822            741                 +8


•   Underlying sales growth in the US in the first quarter was driven by good volume growth combined with
    favourable phasing of price changes compared with last year. SeroquelTM, NexiumTM, CrestorTM, and Toprol-XLTM
    were significant contributors to the growth in sales.


•   Sales in Europe were up 10 percent as a result of strong volume growth.  Sales for the five key growth
    products combined grew by 29 percent.


•   Sales in Japan increased by 1 percent, affected by wholesaler destocking ahead of anticipated April price
    decreases.


•   Sales in China were $72 million in the first quarter (up 14 percent) on good growth in cardiovascular products
    and IressaTM.




Operating Review

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

Operating Results



Reported sales increased by 8 percent and operating profit by 36 percent. At
constant exchange rates, sales increased by 12 percent and operating profit by
33 percent.



Currency movements in the quarter adversely affected sales by 4 percent and
benefited operating profit by 3 percent.  In comparison to quarter one last
year, the dollar was stronger against the Euro (9 percent), decreasing sales,
and also against the Swedish krona (13 percent) and sterling (8 percent),
decreasing costs. This currency profile resulted in a 1 cent benefit to EPS for
the quarter.  Provided current exchange rates are maintained for the remainder
of the year, no further benefits are expected to accrue.



Underlying US sales growth is slightly below reported growth of 15 percent after
adjusting for managed market accruals, inventory movements and other factors.
Outside the US, sales increased by 9 percent.



Reported operating margin increased by 6.7 percentage points from 25.3 percent
to 32.0 percent.  Currency benefited margin by 1.7 percentage points implying an
underlying margin improvement of 5.0 percentage points for the quarter.



Gross margin increased by 4.4 percentage points to 79.8 percent of sales.
Included in quarter one last year was a provision for the early termination of
the Medpointe ZomigTM US distribution agreement.  Excluding this, together with
increased payments to Merck of 0.1 percentage points (4.6 percent of sales) and
a currency benefit of 0.9 percentage points, underlying margin improved by 3.1
percentage points. Gross margin benefited from favourable product mix and
continued operational efficiencies, although this rate of underlying improvement
is not expected to be maintained.



In aggregate, R&D and SG&A expenses of $2,976 million increased 10 percent over
last year, increasing operating margin by 0.9 percentage points. R&D
expenditures were flat on an as reported basis, but up 9 percent over last year
in constant currency terms due to increased investment across the portfolio.  SG
&A increased by 10 percent over last year due primarily to increased investment
in the key products across the business.



Higher other income increased operating margin by 0.6 percentage points due
principally to an increase in royalties.



The fair value adjustments relating to financial instruments amounted to a $9
million charge in quarter one; $8 million charge in cost of sales, $3 million
benefit to R&D and $4 million charge to interest.


Interest and Dividend Income



Net interest and dividend income for the quarter was $68 million, compared with
$33 million for the same period last year. The increase over quarter one last
year is primarily attributable to higher average investment balances and yields.
This amount includes net interest income of $11 million arising from employee
benefit fund assets and liabilities reported under IAS 19, 'Employee Benefits'.




Taxation

The effective tax rate for the quarter is 30.3 percent compared to 29.8 percent
for the first quarter of 2005. For the full year the tax rate is anticipated to
be around 29 percent.



Cash Flow



Free cash flow (which represents cash flows before returns to shareholders and
acquisitions) for the quarter was $1,336 million compared to $1,322 million in
the first quarter of 2005.  After $203 million for the acquisition of KuDOS
Pharmaceuticals in the quarter, net share repurchases of $202 million and the
$1,442 million dividend payment to shareholders, there was an overall decrease
in net funds of $508 million.

Cash generated from operating activities in the quarter was $1,512 million,
comparable with $1,509 million in quarter one 2005. An increase in operating
profit of $523 million was offset by increased working capital requirements,
mainly as a result of the timing of payments in the US, a $129 million reduction
in non-cash movements and a $104 million increase in tax paid.

Net cash from investing activities was affected by the management of group
funds, with more funds being placed on longer term deposit rather than held as
liquid cash; outflows in the current quarter of $1,524 million contrast with
$158 million inflows in the first quarter of 2005. The cash effect of the recent
collaboration agreements resulted in a $89 million increase in expenditure on
intangible assets and a net $203 million was paid for the acquisition of KuDOS
Pharmaceuticals in the quarter. This was offset by $54 million cash received on
the redemption of Abgenix preference shares.

Cash and cash equivalents at 31 March 2006 amounted to $2,954 million compared
with $3,905 million at 31 March 2005. The decrease reflects a transfer out of
liquid funds into longer term deposits.



Share Repurchase Programme



During the quarter 11.65 million shares were repurchased for cancellation at a
total cost of $564 million.

The total number of shares in issue at 31 March 2006 was 1,578 million.

Based on an estimate of interest income foregone, the share buy back programme
is calculated to have added 2 cents to EPS.



Calendar

8 June               Business Review meeting (London)
27 July              Announcement of second quarter and half year 2006 results
26 October           Announcement of third quarter and nine months 2006 results


David Brennan

Chief Executive Officer


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