1st Quarter Results - Part 1

AstraZeneca PLC
25 April 2002

PART 1

AstraZeneca PLC
First Quarter Results 2002

                        'Good first quarter results, EPS up 22 percent.

                            Earnings targets raised for full year.'

Financial Highlights (before Exceptional Items)

Group                          1st Quarter   1st Quarter     Constant
(Continuing operations*)              2002         2001*     Currency

                                        $m            $m            %

Sales                                4,421         3,991          +13

Operating Profit                     1,297         1,055          +22

Profit before Tax                    1,318         1,110          +19

Earnings per Share
  Group                              $0.55         $0.45          +22
  Group (Statutory FRS3)             $0.55         $0.44


* Restated to be on a consistent basis under FRS19.  See note on page 11 for
further information.

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

•     NexiumTM achieved sales of $356 million in the first quarter. NexiumTM 
      share of new prescriptions in US PPI market increased to 18.8 percent.

•     SymbicortTM sales were $54 million in the first quarter.  Regulatory
      package for use in Chronic Obstructive Pulmonary Disease (COPD) submitted 
      in European Union.

•     Excellent progress with ArimidexTM in adjuvant treatment of early
      breast cancer; promotion already started in Japan; FDA has granted 
      six-month priority review, and the European file was submitted on 8 April.

•     CasodexTM sNDA for early prostate cancer granted Priority Review
      Status by FDA on 20 February.

•     SeroquelTM sales were $336 million in the quarter, an increase of 79
      percent, resulting from strong underlying demand combined with some 
      wholesaler stocking.

•     FDA response to CrestorTM NDA now expected by end of June.


Tom McKillop, Chief Executive, said:  'This is a good set of results.  The
transformation of our portfolio continues, with strong performances from 
NexiumTM, SymbicortTM, AtacandTM, SeroquelTM and our range of cancer medicines.  
The regulatory reviews for CrestorTM and IressaTM are ongoing in major markets, 
and we will be filing for marketing approval for ExantaTM in Europe in the third
quarter.'


London, 25 April 2002

Media Enquiries:              Steve Brown/Emily Denney (London)            [phone]/5034
                              Staffan Ternby (Sodertalje)                  (8) 553 26107
                              Rachel Bloom (Wilmington)                    [phone]

Analyst/Investor Enquiries:   Mina Blair-Robinson (London)                 [phone]
                              Jonathan Hunt (London)                       [phone]
                              Staffan Ternby (Sodertalje)                  (8) 553 26107
                              Ed Seage (Wilmington)                        [phone]
                              Jorgen Winroth (New York)                    [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 by 13 percent, and operating profits by 22
percent.  Exchange rate movements against the US dollar reduced reported sales
growth by 2 percent, but had a favourable impact on operating profits by 1
percent.  Earnings per share (before exceptional items) rose by 22 percent to
$0.55.

Sales grew by double digits in all major regions, including a 14 percent
increase in the US.  Sales growth in the US was broadly in line with underlying
demand, as speculative buying around announced or anticipated price changes
affected the first quarter 2002 and the first quarter 2001 to a similar degree.
Trade inventories increased by some $200 million in both periods, although it
was mostly the Cardiovascular and CNS products that were affected in 2002,
whilst it was chiefly PrilosecTM in the first quarter 2001. The company expects
normal unwinding of these inventories over the next two quarters, and there
should be no impact on achievement of our full year targets.

GI franchise sales were up by 1 percent in the quarter.  The strong growth of
NexiumTM continues.  Sales in the quarter were $356 million, including $293
million in the US.  Sales of LosecTM outside the US were broadly unchanged. In
the US PrilosecTM sales were down by 26 percent, in line with the decline in
prescriptions, as NexiumTM continues to represent a growing proportion of
AstraZeneca's PPI franchise.  Total prescriptions for AstraZeneca PPI products
in the US (PrilosecTM and NexiumTM) are 15 percent ahead of last year.

The PrilosecTM patent infringement cases against four generic companies
continues to be heard in the US District Court in New York.  To date there have
been no generic omeprazole products introduced in the US market.

Excluding GI products, sales growth in the first quarter was 20 percent.

Other developments since the beginning of 2002 included regulatory submissions
in the US and Europe for ArimidexTM in the adjuvant treatment of early breast
cancer.

In CNS products, February marked the launch of ZomigTM Nasal Spray in Sweden,
its first market, as well as the regulatory submission in the US.  ZomigTM
RapimeltTM tablets received approval in Japan on 15 March.

The IressaTM NDA in Japan for use as monotherapy in treatment of advanced
non-small cell lung cancer (NSCLC) was submitted on 28 January. The rolling
submission of data in the US to support the fast track review for this
indication continues, and the company is planning for launches in both of these
major markets in the second half of the year.  Completion, validation, and
analysis of the pivotal trials for the use in combination with cytotoxic agents
in NSCLC is expected in the second half of this year; regulatory submissions for
this indication, including first submissions in Europe for IressaTM, are now
expected in fourth quarter 2002.

The regulatory review of CrestorTM in the US is ongoing and, whilst AstraZeneca
does not normally comment on the progress of regulatory reviews, the company has
been informed by FDA that it will not complete its response to the CrestorTM NDA
by 26 April*, but expects to do so before the end of June.  Additional
information and analyses are being generated to support the use of CrestorTM at
higher doses.  AstraZeneca is confident in the profile of CrestorTM and looks
forward to a positive outcome.  The precise timing of the US launch awaits
completion of the review, but is unlikely to be in the third quarter.

Based on the excellent results achieved in the European EXPRESS study of 
ExantaTM for the prevention of blood clots following orthopaedic surgery 
(which will not be published in detail until later this year) the company 
confirms its intention to submit for European marketing approval in the third 
quarter of this year.

 
*April 26th marks the end of the ten-month review period by which FDA targets a
response for seventy percent of filings under the PDUFA agreement.


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

As stated in the year end 2001 results announcement, the short term outlook for
sales and profits could vary depending on product approvals, launch timings, and
entry of generic competition for PrilosecTM and other mature products.  At the
time of that announcement, the range of market expectations for earnings was
between $1.51 and $1.66 per share, and the company anticipated earnings per
share in the middle of this range.  Based upon the company's current views on
these variables, earnings per share are now expected to be around the top of
this range.


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.  These include, but are not limited to: the timing of the
launch of generic omeprazole in the US, the successful registration and launch
of new products (in particular NexiumTM 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 AstraZeneca PLC's Securities and Exchange
Commission filings, including the  2001 annual report on Form 20-F.

Sales

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

Gastrointestinal
                                        First Quarter                    CER %
                                       2002          2001

LosecTM/PrilosecTM                     1,218         1,495               -18
NexiumTM                                 356            81               n/m
Total                                  1,587         1,588                +1


•       NexiumTM sales continued their strong growth.  Sales in the US reached
$293 million in the quarter.  NexiumTM share of new prescriptions in the US
retail PPI market was 18.8 percent in March, up 2.5 points since year end.

•       NexiumTM achieved sales outside of the US of $63 million, with market
share gains across the board.  Market share in Europe is now over 9 percent.
NexiumTM was launched in France at the end of March, and launches in Italy and
Belgium, among others, will follow later this year.

•       Sales of LosecTM outside the US were broadly unchanged (down 1 percent)
with good growth reported in France, Italy, and Japan.

•       In the US, PrilosecTM sales were down by 26 percent, broadly in line
with the trend in prescriptions, as NexiumTM continues to represent a growing
proportion of AstraZeneca's PPI franchise.

•       The PrilosecTM patent infringement cases against four generic companies
continues to be heard in the US District Court in New York.


Cardiovascular
                                                   First Quarter           CER %
                                                 2002          2001

ZestrilTM                                         283           294           -3
AtacandTM                                         151            83          +84
SelokenTM / Toprol-XLTM                           236           151          +57
PlendilTM                                         108           106           +4
Total                                             961           835          +17


•       Sales of AtacandTM Plus/AtacandTM HCT and AtacandTM grew strongly in all
major markets.  Sales outside the US were up 43 percent.  Total prescriptions in
the US were up 35 percent.  Reported sales growth (up 170 percent) was well
ahead of prescriptions, a result of inventory building this year versus
wholesaler de-stocking in the first quarter 2001.

•       Sales of SelokenTM/Toprol-XLTM continue to grow on the strength of the
performance of Toprol-XLTM in the US.  Aided by the congestive heart failure
indication launched last April, total prescriptions are up 37 percent.
Wholesaler stocking lifted the reported sales increase in the US to 100 percent.

•       Sales of ZestrilTM declined slightly, chiefly on generic competition
outside the US.


Respiratory
                                                   First Quarter           CER %
                                                 2002          2001

PulmicortTM                                       229           200          +17
AccolateTM                                         33            49          -31
RhinocortTM                                        64            56          +14
OxisTM                                             31            32           -3
SymbicortTM                                        54             3          n/m
Total                                             446           381          +19


•       The SymbicortTM launch in Europe continues to make good progress, with
particularly strong penetration of the combination segment in France, Germany,
and the Scandinavian markets.  As planned, the regulatory submission for COPD
treatment was made in Europe in the quarter.

•       Despite competitive pressures on PulmicortTM sales outside the US,
overall sales grew by 17 percent, driven by the strong US performance for
PulmicortTM RespulesTM (up 128 percent) and some stock building on PulmicortTM
TurbuhalerTM.

•       In the US, RhinocortTM Aqua continues to increase its share of the
aqueous intranasal steroid segment of the rhinitis market, up over 4 points in
the last twelve months to 12.7 percent in March.  Total prescriptions are up
over 55 percent over the first quarter 2001.


Oncology
                                                  First Quarter            CER %
                                                 2002          2001

CasodexTM                                         124           115          +12
ArimidexTM                                         66            43          +55
NolvadexTM                                        143           139           +5
ZoladexTM                                         190           160          +23
Total                                             528           464          +17


•       Sales of CasodexTM outside the US grew by 49 percent, reflecting strong
growth in Europe (up 55 percent) and in Japan (up 39 percent).  This growth was
partially offset by the 37 percent decline in the US, as significant wholesaler
de-stocking following the price increase in early January masked underlying
prescription growth of around 7 percent.  The supplemental NDA for the treatment
of early prostate cancer with CasodexTM was granted Priority Review Status by
FDA on 20 February.

•       The growth in ArimidexTM sales resulted from a balanced performance,
with strong sales growth in the US (up 69 percent) and in markets outside the US
(up 48 percent).  The US sales increase tracked the underlying demand; new
prescription share in the growing aromatase inhibitor market has shot up to 62.6
percent in March, an increase of nearly 9 points in the last three months.

•       Promotion of ArimidexTM for the adjuvant treatment of early breast
cancer has begun in Japan.  Regulatory submissions for this important new
indication have been made in Europe and the US, with the US granting Priority
Review Status for the application earlier this month.


CNS
                                                   First Quarter           CER %
                                                 2002          2001

SeroquelTM                                        336           189          +79
ZomigTM                                            93            66          +43
Total                                             436           257          +71


•       The market acceptance for SeroquelTM continues to be reflected in steady
growth in demand.  Sales outside the US grew by 73 percent.  Prescriptions in
the US were up 48 percent versus the first quarter last year.  New prescription
share in March was 16.7 percent, up nearly 4 points versus a year ago; this is
the largest share gain among the leading atypical antipsychotics.  Sales in the
US were up 80 percent, indicating stock building in the distribution channels.

•       ZomigTM sales outside the US were up 31 percent, with good growth in
France.  Sales in the US were up 50 percent, well ahead of the growth in
prescriptions (up 11 percent).


Pain, Infection and Other Pharma
                                                   First Quarter           CER %
                                                 2002          2001

MerremTM                                           67            49          +39
DiprivanTM                                        113           107           +9
Local anaesthetics                                 96           104           -4
Total                                             347           364           -2


•       Strong growth in the US (up 67 percent) drove MerremTM performance.
Sales outside the US increased by 33 percent.

Geographic Sales
                                                      First Quarter        CER %
                                                   2002          2001

USA                                               2,448         2,139        +14
Europe                                            1,395         1,291        +10
Japan                                               172           178        +10
RoW                                                 406           383        +11


•       Sales in the US were up by 14 percent in the quarter despite the decline
in PrilosecTM sales as more of the PPI franchise migrates to NexiumTM.  NexiumTM
was the key growth driver in the quarter, and underlying demand for key growth
products such as SeroquelTM, Toprol-XLTM, AtacandTM, ArimidexTM and CasodexTM
was also strong.

•       Sales growth in Europe was fuelled by SymbicortTM and NexiumTM, as well
as by important contributions from CasodexTM, ZoladexTM, AtacandTM and Seroquel
TM.  France, Italy, and Spain were the fastest growing of the largest markets.

•       Sales in Japan continue to grow in double digits, with a strong
performance in oncology products and continued good growth in LosecTM leading
the quarter's performance.


Operating Profit

Operating profit before exceptional items grew by 22 percent at constant
exchange rates to $1,297 million in the quarter.  This was well ahead of sales
growth, partly aided by higher wholesaler inventories and favourable phasing of
R&D and sales and marketing costs.  As highlighted, wholesaler inventories in
the US were some $200 million above normal levels, but at a level similar to the
end of first quarter 2001.

Currency had a 1% favourable impact on profit in the first quarter.  The
continuing benefits of the strong dollar against the Swedish Krona and Pounds
Sterling more than offset the adverse effect on the Euro.  For 2002, if current
spot rates stay constant for the remainder of the year, we would estimate an
adverse impact of around 1-2% on earnings per share, consistent with our
guidance given in the 2001 results release.

Operating margin for the quarter of 29.3% was nearly three percentage points
ahead of 2001.  Cost of sales was marginally lower than last year with lower
contingent payments to Merck.  Research and development costs were 15.8 percent
of sales, down from 16.8 percent of sales in 2001, partly through a favourable
currency impact, particularly from the Swedish Krona, and also from phasing of
project costs.  Selling, general and administrative costs were up 5% with
increases in selling costs partially offset by a decline in general and
administrative costs.  Other operating income at $156 million was similar to
2001 levels and included a gain from the disposal of SularTM in the US.

Interest

The group recorded net interest and dividend income of $21 million in the
quarter.  The variance against 2001 was caused by lower US interest rates as
well as marginally lower cash balances as a result of the share repurchase
programme.

Taxation

Excluding exceptional items, the effective tax rate for the first quarter 2002
was 27% compared with 28.4% for 2001.  The 2001 tax rate has been restated under
FRS19.  See Note 1 to the interim financial statements for more detail.

Cash Flow

Cash generated from operating activities amounted to $1.9 billion in the first
quarter aided by a timing benefit in the quarterly payment to Merck.  The net
increase in net cash funds after capital expenditure, tax and share repurchases
was $1.4 billion in the quarter.

Share Repurchase Programme

During the quarter, 2.8 million ordinary shares were re-purchased (nominal value
$0.25 each) for cancellation at a total cost of $140.0 million.

The total number of shares re-purchased for cancellation since the start of the
programme in December 1999 now stands at 40.0 million at an aggregate cost of
$1,756 million.  The total number of shares in issue (as at 31 March 2002) is
1,743 million.



Upcoming Milestones and Key Events

25 April            Annual General Meeting

25 July             Half Year results

Third Quarter       ExantaTM filing in Europe for orthopaedic surgery

24 October          Third Quarter and Nine Month results

Fourth Quarter      IressaTM filing for combination therapy in NSCLC

7 November          Annual Business Review


Tom McKillop
Chief Executive


                      This information is provided by RNS
            The company news service from the London Stock Exchange

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