3rd Quarter Results - 2 of 2
AstraZeneca PLC
01 November 2007
Consolidated Income Statement
2007 2006
For the nine months ended 30 September $m $m
Sales 21,389 19,321
Cost of sales (4,598) (3,981)
Distribution costs (181) (165)
Research and development (3,730) (2,778)
Selling, general and administrative costs (7,309) (6,585)
Other operating income and expense 594 401
Operating profit 6,165 6,213
Finance income 703 621
Finance expense (722) (394)
Profit before tax 6,146 6,440
Taxation (1,794) (1,822)
Profit for the period 4,352 4,618
Attributable to:
Equity holders of the Company 4,329 4,611
Minority interests 23 7
4,352 4,618
Basic earnings per $0.25 Ordinary Share $2.88 $2.93
Diluted earnings per $0.25 Ordinary Share $2.87 $2.92
Weighted average number of Ordinary Shares
in issue (millions) 1,505 1,572
Diluted average number of Ordinary Shares
in issue (millions) 1,510 1,578
Dividends declared in the period 2,658 2,217
Consolidated Income Statement
2007 2006
For the quarter ended 30 September $m $m
Sales 7,150 6,516
Cost of sales (1,444) (1,339)
Distribution costs (59) (53)
Research and development (1,335) (962)
Selling, general and administrative costs (2,487) (2,180)
Other operating income and expense 197 124
Operating profit 2,022 2,106
Finance income 217 221
Finance expense (351) (140)
Profit before tax 1,888 2,187
Taxation (537) (595)
Profit for the period 1,351 1,592
Attributable to:
Equity holders of the Company 1,343 1,587
Minority interests 8 5
1,351 1,592
Basic earnings per $0.25 Ordinary Share $0.91 $1.01
Diluted earnings per $0.25 Ordinary Share $0.90 $1.01
Weighted average number of Ordinary Shares
in issue (millions) 1,486 1,562
Diluted average number of Ordinary Shares
in issue (millions) 1,489 1,569
Consolidated Balance Sheet
As at 30 As at 31 As at 30
September December September
2007 2006 2006
$m $m $m
ASSETS
Non-current assets
Property, plant and equipment 8,316 7,453 7,297
Intangible assets, including goodwill 21,395 4,204 4,710
Other investments 217 119 137
Deferred tax assets 1,331 1,220 1,545
31,259 12,996 13,689
Current assets
Inventories 2,558 2,250 2,209
Trade and other receivables 6,492 5,561 5,404
Other investments 102 657 413
Income tax receivable 2,111 1,365 651
Cash and cash equivalents 3,428 7,103 5,756
14,691 16,936 14,433
Total assets 45,950 29,932 28,122
LIABILITIES
Current liabilities
Short-term borrowings and overdrafts (5,403) (136) (113)
Trade and other payables (6,732) (6,334) (5,780)
Income tax payable (3,393) (2,977) (2,195)
(15,528) (9,447) (8,088)
Non-current liabilities
Interest bearing loans (8,994) (1,087) (1,089)
Deferred tax liabilities (4,224) (1,559) (1,772)
Retirement benefit obligations (1,630) (1,842) (1,752)
Provisions (606) (327) (329)
Other payables (226) (254) (309)
(15,680) (5,069) (5,251)
Total liabilities (31,208) (14,516) (13,339)
Net assets 14,742 15,416 14,783
EQUITY
Capital and reserves attributable to equity holders of
the Company
Share capital 369 383 388
Share premium account 1,832 1,671 1,620
Other reserves 1,903 1,902 1,856
Retained earnings 10,510 11,348 10,819
14,614 15,304 14,683
Minority equity interests 128 112 100
Total equity 14,742 15,416 14,783
Consolidated Cash Flow Statement
2007 2006
For the nine months ended 30 September $m $m
Cash flows from operating activities
Profit before taxation 6,146 6,440
Finance income and expense 19 (227)
Depreciation, amortisation and impairment 1,304 917
Increase in working capital (1,049) (164)
Other non-cash movements 679 241
Cash generated from operations 7,099 7,207
Interest paid (250) (35)
Tax paid (2,337) (1,639)
Net cash inflow from operating activities 4,512 5,533
Cash flows from investing activities
Acquisition of businesses* (14,814) (1,170)
Movement in short term investments and fixed deposits* 875 1,353
Purchase of property, plant and equipment (754) (565)
Disposal of property, plant and equipment 39 20
Purchase of intangible assets (454) (489)
Purchase of non-current asset investments (22) (15)
Disposal of non-current asset investments* 384 54
Interest received 295 259
Dividends paid by subsidiaries to minority interest (9) (4)
Net cash outflow from investing activities (14,460) (557)
Net cash (outflow)/inflow before financing activities* (9,948) 4,976
Cash flows from financing activities
Proceeds from issue of share capital 162 934
Repurchase of shares (3,294) (2,958)
Dividends paid (2,641) (2,220)
Repayment of loans (1,165) -
Issue of loans 7,895 -
Movement in short term borrowings 5,297 36
Net cash inflow/(outflow) from financing activities 6,254 (4,208)
Net (decrease)/increase in cash and cash equivalents in the period (3,694) 768
Cash and cash equivalents at the beginning of the period 6,989 4,895
Exchange rate effects 50 22
Cash and cash equivalents at the end of the period 3,345 5,685
Cash and cash equivalents consists of:
Cash and cash equivalents 3,428 5,756
Overdrafts (83) (71)
3,345 5,685
Note: Free Cash Flow (*) of $3,607 million (2006: $4,793 million) is calculated
as; net cash (outflow)/inflow before financing activities, adjusted for:
acquisition of businesses, movements in short term investments and fixed
deposits, and disposal of MedImmune non-current asset investments (2007: $384
million, 2006: $nil).
Consolidated Statement of Recognised Income and Expense
For the nine months ended 30 September 2007 2006
$m $m
Profit for the period 4,352 4,618
Foreign exchange adjustments on consolidation 420 565
Available for sale losses taken to equity (15) (11)
Actuarial gains/(losses) for the period 336 (13)
Tax on items taken directly to reserves (79) 95
662 636
Total recognised income and expense for the period 5,014 5,254
Attributable to:
Equity holders of the Company 4,998 5,248
Minority interests 16 6
5,014 5,254
Notes to the Interim Financial Statements
1 BASIS OF PREPARATION AND ACCOUNTING POLICIES
The unaudited financial statements for the nine months ended 30 September 2007
have been prepared in accordance with International Accounting Standards and
International Financial Reporting Standards (collectively 'IFRS') as adopted by
the European Union (EU). Details of the accounting policies applied are those
set out in AstraZeneca PLC's Annual Report and Form 20-F Information 2006.
These condensed consolidated interim financial statements have been prepared in
accordance with International Financial Reporting Standard (IFRS) IAS 34 -
Interim Financial Reporting. They do not include all of the information
required for full annual financial statements, and should be read in conjunction
with the consolidated financial statements of the Group as at and for the year
ended 31 December 2006.
The information contained in Note 5 updates the disclosures concerning legal
proceedings and contingent liabilities in the Company's Annual Report and Form
20-F Information 2006.
These interim financial statements do not constitute statutory accounts of the
Group within the meaning of Section 240 of the Companies Act 1985. Statutory
accounts for the year ended 31 December 2006 have been filed with the Registrar
of Companies. The auditors' report on those accounts was unqualified and did
not contain any statement under Section 237 of the Companies Act 1985.
2 NET DEBT
The table below provides an analysis of net debt and a reconciliation of net
cash flow to the movement in net debt.
At 1 Jan Cash Non-cash Exchange At 30 Sept
2007 flow Acquisitions movements movements 2007
$m $m $m $m $m $m
Loans due after 1 year (1,087) (7,895) - (7) (5) (8,994)
Current instalments of - 1,165 (1,165) - - -
loans
Total loans (1,087) (6,730) (1,165) (7) (5) (8,994)
Other investments - 657 (875) 279 38 3 102
current
Cash and cash equivalents 7,103 (3,726) - - 51 3,428
Overdrafts (114) 32 - - (1) (83)
Short term borrowings (22) (5,297) - - (1) (5,320)
7,624 (9,866) 279 38 52 (1,873)
Net funds/(debt) 6,537 (16,596) (886) 31 47 (10,867)
Non-cash movements in the period include fair value adjustments under IAS 39.
3 MEDIMMUNE, INC. ACQUISITION
On 1 June 2007, AstraZeneca announced the successful tender offer for all the
outstanding shares of common stock of MedImmune, Inc., a world-leading
biotechnology company with proven biologics discovery and development strength,
pipeline and leading biomanufacturing. At that date, approximately 96.0% of the
outstanding shares were successfully tendered; the remaining shares were
acquired by 18 June 2007. The financial results of MedImmune, Inc. have been
consolidated into the Company's results from 1 June 2007.
Cash consideration of $13.9 billion was paid for the outstanding shares. After
taking account of the cash and investments acquired, together with the
settlement of MedImmune's convertible debt and outstanding share options, the
total cash to be paid to acquire MedImmune is $15.6 billion.
In most business acquisitions, there is a part of the cost that is not capable
of being attributed in accounting terms to identifiable assets and liabilities
acquired and is therefore recognised as goodwill. In the case of the
acquisition of MedImmune, this goodwill is underpinned by a number of elements,
which individually cannot be quantified. Most significant amongst these is the
premium attributable to a pre-existing, well positioned business in the
innovation intensive, high growth biologics market with a highly skilled
workforce and established reputation. Other important elements include buyer
specific synergies, potential additional indications for identified products and
the core technological capabilities and knowledge base of the company.
MedImmune, Inc. contributed $165 million (Q3: $141 million) of turnover in the
period since acquisition. After amortisation, net investments/interest costs
(including interest costs of external financing of $243 million (Q3: $191
million) and tax), the loss attributable to the MedImmune acquisition was $355
million (Q3: $264 million). If the acquisition had taken effect at the beginning
of the reporting period (1 January 2007), on a proforma basis the revenue,
profit before tax and profit after tax of the combined Group for the nine month
period would have been $21,957 million, $5,739 million and $4,076 million,
respectively. Basic and diluted Earnings per Share for the combined Group would
have been $2.69 and $2.68, respectively. This proforma information has been
prepared taking into account amortisation, interest costs and related tax
effects but does not purport to represent the results of the combined Group that
actually would have occurred had the acquisition taken place on 1 January 2007
and should not be taken to be representative of future results.
Fair value
Book value adjustment Fair value
$m $m $m
Non-current assets
Intangible assets 193 8,136 8,329
Property, plant and equipment 523 70 593
Other 550 (17) 533
1,266 8,189 9,455
Current assets 1,439 115 1,554
Current liabilities (326) 39 (287)
Additional obligations related to
convertible debt and share options - (1,724) (1,724)
Non-current liabilities
Interest bearing loans and borrowings (1,165) - (1,165)
Other payables (73) - (73)
Deferred tax assets/(liabilities) 314 (2,787) (2,473)
(924) (2,787) (3,711)
Total assets acquired 1,455 3,832 5,287
Goodwill 8,596
Total consideration for outstanding shares* 13,883
Additional payments related to convertible
debt, share options and other acquisition 1,770
obligations
Less: amounts paid after 30 September 2007 (10)
Less: cash acquired (979)
Net cash outflow 14,664
* The total consideration for outstanding shares includes $29m of
directly attributable costs.
4 RESTRUCTURING COSTS
Profit before tax for the nine months ended 30 September 2007 is stated after
charging restructuring costs of $604 million ($146 million in the third
quarter). These have been charged to the income statement as follows:
3rd Quarter 9 Months
$m $m
Cost of Sales 39 320
R&D 8 37
SG&A 99 247
Total 146 604
5 LEGAL PROCEEDINGS and contingent liabilities
AstraZeneca is involved in various legal proceedings considered typical to its
business, including litigation relating to employment matters, product
liability, commercial disputes, infringement of intellectual property rights and
the validity of certain patents. The matters discussed below constitute the
more significant developments since publication of the disclosures concerning
legal proceedings in the Company's Annual Report and Form 20-F Information 2006
and Half Year Results 2007.
AtacandTM Plus (candesartan cilexetil and hydrochlorothiazide)
The EPO Opposition Division has ruled that the European patent covering a
composition of AtacandTM Plus for treatment of hypertension is to be upheld as
granted. The decision was communicated in September 2007. The decision may be
appealed within two months from the decision.
The patent also covers use of a composition of AtacandTM Plus (candesartan
cilexetil and hydrochlorothiazide) for treatment of hypertension in Austria,
Belgium, Denmark, France, Germany, Greece, Ireland, Italy, Liechtenstein,
Luxembourg, Portugal, Spain, Sweden, Switzerland, the Netherlands and the UK.
This patent expires in September 2016.
CrestorTM (rosuvastatin)
On 30 October 2007, AstraZeneca received a notice-letter from Cobalt
Pharmaceuticals, Inc. (Cobalt) notifying AstraZeneca Pharmaceuticals LP,
AstraZeneca AB, IPR Pharmaceuticals Inc., and Shionogi Seiyaku Kabushiki Kaisha
that Cobalt had submitted an Abbreviated New Drug Application (ANDA) to the US
Food and Drug Administration for approval to market generic rosuvastatin calcium
tablets. Cobalt's notice-letter advised that it intended to market generic
versions of CrestorTM tablets in 5, 10, 20, and 40mg strengths before the
expiration of US Patent Nos. RE37,314E (the '314 patent) and 6,316,460B1 (the '
460 patent). Cobalt's notice-letter states that its ANDA contained a Paragraph
IV certification alleging that the claims of the '314 and '460 patents are not
infringed, invalid or unenforceable. Cobalt's notice-letter also states that its
ANDA contains a certification under section 505(j)(2)(A)(viii) of the FDCA
alleging that its labelling will not include medical uses claimed in US Patent
6,858,618 (the '618 patent).
The '314 patent expires in January 2016, the '460 patent expires in August 2020,
and the '618 patent expires in December 2021.
AstraZeneca is evaluating Cobalt's allegations and certifications. AstraZeneca
has full confidence in its intellectual property portfolio protecting CrestorTM.
AstraZeneca has 45 days within which to commence a patent infringement lawsuit
against the filer of an ANDA that would automatically stay, or bar, the FDA from
approving the ANDA for 30 months (or until an adverse court decision, whichever
may occur earlier).
LosecTM/ PrilosecTM (omeprazole)
In September 2007, as part of a settlement, the LosecTM proceedings in Canada
involving Sandoz were discontinued by AstraZeneca and Sandoz withdrew its
allegation of invalidity with respect to the relevant LosecTM patents. As a
result of the discontinuance, Sandoz was able to obtain marketing approval for
its generic version of LosecTM and it is now marketing and selling its product
in Canada.
In April 2006, AstraZeneca received a notice from Dexcel Pharma Technologies
(Dexcel) that Dexcel had submitted a New Drug Application seeking FDA approval
to market a 20mg omeprazole tablet for the over-the-counter (OTC) market. Dexcel
seeks approval to market a generic omeprazole OTC product before the expiration
of the patents listed in the FDA Orange Book in reference to AstraZeneca's
PrilosecTM product and the PrilosecTM OTC product that is marketed by Procter &
Gamble. In May 2006, AstraZeneca filed suit in the US District Courts for the
District of Delaware and the Eastern District of Virginia charging Dexcel with
infringement of the three patents. In September 2007, the parties entered into
a settlement agreement, and the cases have been dismissed. Terms of settlement
are confidential and are not material to AstraZeneca.
In June 2007, AstraZeneca received a notice from Dr. Reddy's Laboratories, Ltd.
and from Dr. Reddy's Laboratories, Inc. (Dr. Reddy's) that Dr. Reddy's had
submitted an ANDA seeking FDA approval to market a 20mg delayed release
omeprazole magnesium capsule for the OTC market. Dr. Reddy's seeks approval to
market a generic omeprazole OTC product before the expiration of the patents
listed in the FDA Orange Book in reference to the PrilosecTM OTC product that is
marketed by Procter & Gamble. In July 2007, AstraZeneca and Merck commenced
patent infringement litigation in the US District Court for the Southern
District of New York against Dr. Reddy's in response to Dr. Reddy's paragraph IV
certifications regarding PrilosecTM OTC. No trial date has been set.
NexiumTM (esomeprazole magnesium)
In September 2007, the US Court of Appeals for the Third Circuit denied the
plaintiffs' motion to rehear the decision affirming the dismissal of the
previously disclosed NexiumTM consumer litigation filed in Delaware federal
court. The plaintiffs are expected to file a petition for certiorari to the US
Supreme Court.
In June 2007, Florida's appellate court affirmed the dismissal of the previously
disclosed NexiumTM consumer litigation pending in Florida. The plaintiff has
filed a petition in the Florida Supreme Court for discretionary review.
In July and September 2007, AstraZeneca received notices from Matrix
Laboratories, Inc. (Matrix) that Matrix had submitted ANDAs to the US FDA for
esomeprazole magnesium delayed release capsules, 20 and 40mg. Matrix was
seeking FDA approval to market a generic esomeprazole magnesium product prior to
the expiration of some but not all of the patents listed in the FDA Orange Book
with reference to NexiumTM. Matrix's notice did not challenge three Orange
Book-listed patents claiming esomeprazole magnesium. AstraZeneca's exclusivity
relating to these three patents extends to August 2015 and November 2014. Since
AstraZeneca has not received notice from Matrix as to these three US patents,
Matrix cannot market generic esomeprazole magnesium until the end of the
exclusivity afforded by these patents. AstraZeneca is evaluating Matrix's
notice.
In October 2007, the European Patent Office (EPO) Opposition Division ruled that
the European process patent for NexiumTM, which covers the process for
manufacturing esomeprazole and its salts, is valid in its amended form, despite
an opposition by the German generic manufacturer ratiopharm.
The European patent protecting the formulation of the NexiumTM MUPS product is
under opposition with the EPO and an Opposition Division oral hearing is
scheduled for November 2007. The patent is opposed by the generic companies
ratiopharm, Hexal, Teva and Krka.
AstraZeneca continues to have full confidence in and will vigorously defend and
enforce its intellectual property protecting NexiumTM.
RhinocortTM Aqua (budesonide) Nasal Spray
In September 2007, AstraZeneca AB received a letter from Apotex Inc. (Apotex)
stating that Apotex had submitted an ANDA for a budesonide nasal spray (32
microgram spray) and that it intended to engage in the commercial manufacture,
use and sale of a generic version of RhinocortTM Aqua budesonide Nasal Spray
before the expiration of US Patent Nos. 6,291,445, 6,686,346 and 6,986,904 (the
'445, '346 and '904 patents). The Apotex notice contained a Paragraph IV
certification alleging that the claims of the '445, '346 and '904 patents are
'not infringed and invalid.' The '346 and '904 patents will expire in April
2017. The '445 patent has an additional six months of paediatric exclusivity
which ends in October 2017.
After investigating the allegations in Apotex's Paragraph IV letter, AstraZeneca
has decided not to file a patent infringement suit against Apotex. AstraZeneca
will not maintain or enforce the '445, '346 and '904 patents and will request
their de-listing from the Orange Book.
SeroquelTM (quetiapine fumarate)
As previously disclosed, AstraZeneca Pharmaceuticals LP, either alone or in
conjunction with one or more affiliates, has been sued in numerous individual
personal injury actions involving SeroquelTM. In most of these cases, the
nature of the plaintiffs' alleged injuries is not clear from the complaint and
in most instances, little or no factual information regarding the alleged injury
has been provided in the complaint. However, the plaintiffs generally contend
that they developed diabetes and/or other related injuries as a result of taking
SeroquelTM and/or other atypical anti-psychotic medications.
As of 17 October 2007, AstraZeneca was defending 8,029 served or answered
lawsuits involving approximately 10,500 plaintiff groups. To date,
approximately 996 cases have been dismissed by order or agreement. Discovery
directed to all parties is ongoing in the SeroquelTM cases.
AstraZeneca intends to vigorously defend all these SeroquelTM cases.
SymbicortTM (formoterol and budesonide)
In October 2007, the EPO Technical Board of Appeal ruled that the European
Combination patent for SymbicortTM (formoterol and budesonide) be revoked,
following an appeal from a group of generic manufacturers.
As at October 2007, there is one granted patent that covers the use of Symbicort
TM for COPD under appeal and another under opposition.
AstraZeneca will vigorously defend and enforce its remaining intellectual
property portfolio protecting SymbicortTM, which holds patent dates up to 2019
in Europe.
Toprol-XLTM (metoprolol succinate)
In August 2007, AstraZeneca petitioned the US Court of Appeals for the Federal
Circuit to reconsider its decision that the '154 patent is invalid for double
patenting. In September 2007 the court denied the petition.
AstraZeneca did not file a complaint for patent infringement against Dr. Reddy's
in response to the receipt of notice in June 2007 of the filing of an ANDA by
Dr. Reddy's for the 200mg and 100mg doses of metoprolol succinate extended
release tablets.
Government Investigations
AstraZeneca, along with several other manufacturers, has received a letter from
the Committee on Oversight and Government Reform of the US House of
Representatives as part of the Committee's ongoing oversight of the
pharmaceutical industry's research and marketing practices. The Committee has
requested that AstraZeneca provide clinical and marketing information relating
to SeroquelTM.
AstraZeneca has also received a letter from the Finance Committee of the US
Senate which requests information regarding AstraZeneca's payments to certain
identified physicians and their prescription data related to SeroquelTM.
AstraZeneca is co-operating with both enquiries.
Federal Trade Commission (FTC) Study on Authorised Generics
In October 2007, AstraZeneca received a Special Order from the FTC, requesting
certain information in connection with the FTC's industry-wide study of the
short and long-term competitive effects of authorised generics in the
prescription drug marketplace. AstraZeneca has begun to collect the requested
information and plans to respond to the Special Order.
Average wholesale price class action litigation
MedImmune is involved in various lawsuits brought by various states and counties
in the United States alleging manipulation of average wholesale prices by
several defendants, including MedImmune. These were disclosed as part of
MedImmune's Annual Report on Form 10-K for the fiscal year ended 31 December
2006, filed with the U.S. Securities and Exchange Commission. During the last
quarter, there were no material changes to the status of these lawsuits, except
that in October 2007 MedImmune was served with a complaint filed by the State of
Iowa. As previously noted, MedImmune was also served with a complaint filed by
the County of Orange, New York, in April 2007.
Taxation
As previously disclosed in the Annual Report and Form 20-F Information 2006, the
international tax environment presents increasingly challenging dynamics in
terms of transfer pricing dispute settlements. Our balance sheet positions for
transfer pricing matters reflect appropriate corresponding relief in the
territories affected. Management considers that at present such corresponding
relief will be available but given the challenges in the international tax
environment, will keep this aspect under careful review.
6 NINE MONTHS TERRITORIAL SALES ANALYSIS
% Growth
9 Months 9 Months
2007 2006 Constant
$m $m Actual Currency
US 9,701 9,059 7 7
Canada 814 768 6 4
North America 10,515 9,827 7 7
Western Europe** 6,662 5,930 12 4
Japan 1,129 1,061 6 10
Other Established ROW 506 395 28 15
Established ROW* 8,297 7,386 12 5
Emerging Europe 735 615 20 11
China 313 241 30 25
Emerging Asia Pacific 545 466 17 11
Other Emerging ROW 984 786 25 21
Emerging ROW 2,577 2,108 22 16
Total Sales 21,389 19,321 11 7
* Established ROW comprises Western Europe (including France, UK, Germany,
Italy, Sweden and others), Japan, Australia and New Zealand.
** For the nine months, Western Europe sales growth excluding SynagisTM would be
11 percent on an actual basis and 2 percent on a constant currency basis.
7 THIRD QUARTER TERRITORIAL SALES ANALYSIS
% Growth
3rd Quarter 3rd Quarter
2007 2006 Constant
$m $m Actual Currency
US 3,199 3,100 3 3
Canada 286 255 12 6
North America 3,485 3,355 4 3
Western Europe*** 2,200 1,932 14 6
Japan 395 370 7 10
Other Established ROW 196 143 37 20
Established ROW* 2,791 2,445 14 8
Emerging Europe 241 186 30 16
China 112 85 32 25
Emerging Asia Pacific 189 158 20 12
Other Emerging ROW 332 287 16 10
Emerging ROW 874 716 22 14
Total Sales 7,150 6,516 10 6
* Established ROW comprises Western Europe (including France, UK, Germany,
Italy, Sweden and others), Japan, Australia and New Zealand.
*** For the third quarter, Western Europe sales growth excluding SynagisTM would
be 10 percent on an actual basis and 3 percent on a constant currency basis.
8 NINE MONTHS PRODUCT SALES ANALYSIS
World US
9 Months 9 Months Actual Constant 9 Months Actual
2007 2006 Growth Currency 2007 Growth
$m $m % Growth $m %
%
Gastrointestinal:
Nexium 3,913 3,752 4 2 2,568 1
Losec/Prilosec 845 1,024 (17) (20) 168 8
Others 60 54 11 6 21 50
Total Gastrointestinal 4,818 4,830 - (3) 2,757 2
Cardiovascular:
Crestor 1,997 1,403 42 39 1,038 31
Seloken/Toprol-XL 1,229 1,407 (13) (14) 883 (20)
Atacand 934 809 15 10 193 1
Tenormin 224 238 (6) (8) 14 (26)
Zestril 228 229 - (6) 16 (24)
Plendil 205 210 (2) (8) 28 40
Others 212 213 - (7) 2 -
Total Cardiovascular 5,029 4,509 12 8 2,174 1
Respiratory:
Symbicort 1,139 861 32 23 34 n/m
Pulmicort 1,007 892 13 11 657 16
Rhinocort 267 270 (1) (4) 174 (8)
Oxis 64 65 (2) (9) - -
Accolate 57 59 (3) (3) 41 (2)
Synagis 138 - n/m n/m 58 n/m
FluMist - - - - - -
Others 121 105 15 7 - -
Total Respiratory 2,793 2,252 24 19 964 21
Oncology:
Arimidex 1,256 1,096 15 11 507 15
Casodex 965 879 10 6 220 3
Zoladex 797 736 8 4 68 (15)
Iressa 168 174 (3) (3) 7 (42)
Ethyol 27 - n/m n/m 27 n/m
Others 267 220 21 18 122 44
Total Oncology 3,480 3,105 12 8 951 15
Neuroscience:
Seroquel 2,941 2,504 17 15 2,093 15
Local anaesthetics 398 396 1 (5) 32 (51)
Zomig 320 295 8 5 133 5
Diprivan 189 225 (16) (19) 29 (54)
Others 43 44 (2) (7) 11 (15)
Total Neuroscience 3,891 3,464 12 10 2,298 10
Infection and Other:
Merrem 558 437 28 21 107 27
Other Products 203 190 7 3 109 12
Total Infection and Other 761 627 21 15 216 19
Aptium Oncology 300 276 9 9 300 9
Astra Tech 317 258 23 14 41 37
Total 21,389 19,321 11 7 9,701 7
9 THIRD QUARTER PRODUCT SALES ANALYSIS
World US
3rd 3rd Constant 3rd
Quarter Quarter Actual Currency Quarter Actual
2007 2006 Growth Growth 2007 Growth
$m $m % % $m %
Gastrointestinal:
Nexium 1,293 1,280 1 (1) 851 (3)
Losec/Prilosec 268 324 (17) (20) 54 (4)
Others 20 21 (5) (10) 8 (11)
Total Gastrointestinal 1,581 1,625 (3) (5) 913 (3)
Cardiovascular:
Crestor 691 536 29 25 342 14
Seloken/Toprol-XL 328 473 (31) (33) 213 (43)
Atacand 320 279 15 8 65 (7)
Tenormin 73 77 (5) (8) 4 (33)
Zestril 72 76 (5) (11) 3 (63)
Plendil 66 68 (3) (9) 8 (11)
Others 71 70 1 (6) 1 n/m
Total Cardiovascular 1,621 1,579 3 (1) 636 (17)
Respiratory:
Symbicort 371 276 34 25 4 n/m
Pulmicort 286 263 9 6 184 12
Rhinocort 80 83 (4) (7) 49 (16)
Oxis 18 21 (14) (24) - -
Accolate 19 20 (5) (5) 13 (13)
Synagis 122 - n/m n/m 56 n/m
FluMist - - - - - -
Others 39 33 18 9 - -
Total Respiratory 935 696 34 29 306 29
Oncology:
Arimidex 425 382 11 7 167 7
Casodex 324 299 8 5 72 (1)
Zoladex 273 255 7 2 23 (18)
Iressa 55 62 (11) (11) 2 (50)
Ethyol 19 - n/m n/m 19 n/m
Others 93 78 19 14 42 31
Total Oncology 1,189 1,076 11 7 325 11
Neuroscience:
Seroquel 1,055 848 24 22 760 24
Local anaesthetics 129 124 4 (2) 10 (38)
Zomig 107 99 8 5 44 7
Diprivan 64 64 - (5) 10 (17)
Others 16 15 7 - 5 -
Total Neuroscience 1,371 1,150 19 16 829 21
Infection and Other:
Merrem 186 153 22 14 37 12
Other Products 63 57 11 14 39 22
Total Infection and Other 249 210 19 14 76 17
Aptium Oncology 100 95 5 5 100 5
Astra Tech 104 85 22 15 14 27
Total 7,150 6,516 10 6 3,199 3
Shareholder Information
ANNOUNCEMENTS AND MEETINGS
Announcement of fourth quarter and full year 2007 results 31 January 2008
Announcement of first quarter 2008 results 24 April 2008
Annual General Meeting 24 April 2008
Announcement of second quarter and half year 2008 results 31 July 2008
Announcement of third quarter and nine months 2008 30 October 2008
results
DIVIDENDS
The record date for the first interim dividend payable on 17 September 2007 (in
the UK, Sweden and the US) was 10 August 2007. Ordinary shares were traded
ex-dividend on the London and Stockholm Stock Exchanges from 8 August 2007.
ADRs traded ex-dividend on the New York Stock Exchange from the same date.
The record date for the second interim dividend for 2007 payable on 17 March
2008 (in the UK, Sweden and the US) will be 8 February 2008. Ordinary shares
will trade ex-dividend on the London and Stockholm Stock Exchanges from 6
February 2008. ADRs will trade ex-dividend on the New York Stock Exchange from
the same date.
Future dividends will normally be paid as follows:
First interim Announced in July and paid in September
Second interim Announced in January and paid in March
TRADEMARKS
The following brand names used in these interim financial statements are
trademarks of the AstraZeneca Group of companies:
Accolate Arimidex Astra Tech Atacand Casodex Crestor Diprivan Ethyol
Faslodex FluMist Iressa Losec Merrem Nexium Nolvadex Numax Oxis Plendil
Prilosec Pulmicort Pulmicort Respules Recentin Rhinocort Rhinocort Aqua
Seloken Seroquel Symbicort Symbicort SMART Synagis Tenormin Toprol-XL
Zestril Zoladex Zomig
ADDRESSES FOR CORRESPONDENCE
Registrar and Depositary Registered Office Swedish Securities
Transfer Office for ADRs Registration Centre
The AstraZeneca Registrar JPMorgan Chase Bank 15 Stanhope Gate VPC AB
Lloyds TSB Registrars JPMorgan Service Center London PO Box 7822
The Causeway PO Box 3408 W1K 1LN SE-103 97 Stockholm
Worthing South Hackensack UK Sweden
West Sussex NJ 07606-3408
BN99 6DA US
UK
Tel (freephone in UK): Tel (toll free in US): Tel: +44 (0)20 7304 5000 Tel: +46 (0)8 402 9000
0800 389 1580 888 697 8018
Tel (outside UK): Tel: +1 (201) 680 6630
+44 (0)121 415 7033
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
In order to utilise the 'safe harbour' provisions of the US Private Securities
Litigation Reform Act 1995, we are providing the following cautionary statement:
These interim financial statements contain certain forward-looking statements
about AstraZeneca. Although we believe our expectations are based on reasonable
assumptions, any forward-looking statements may be influenced by factors that
could cause actual outcomes and results to be materially different from those
predicted. We identify the forward-looking statements by using the words '
anticipates', 'believes', 'expects', 'intends' and similar expressions in such
statements. These forward-looking statements are subject to numerous risks and
uncertainties. Important factors that could cause actual results to differ
materially from those contained in forward-looking statements, certain of which
are beyond our control, include, among other things: the loss or expiration of
patents, marketing exclusivity or trade marks; the risk of substantial adverse
litigation/government investigation claims and insufficient insurance coverage;
exchange rate fluctuations; the risk that R&D will not yield new products that
achieve commercial success; the risk that strategic alliances will be
unsuccessful; the impact of competition, price controls and price reductions;
taxation risks; the risk of substantial product liability claims; the impact of
any failure by third parties to supply materials or services; the risk of
failure to manage a crisis; the risk of delay to new product launches; the
difficulties of obtaining and maintaining regulatory approvals for products; the
risk of failure to observe ongoing regulatory oversight; the risk that new
products do not perform as we expect; the risk of environmental liabilities; the
risks associated with conducting business in emerging markets; the risk of
reputational damage; and the risk of product counterfeiting.
This information is provided by RNS
The company news service from the London Stock Exchange
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