Final Results - Part 1 of 3

AstraZeneca PLC
31 January 2008



AstraZeneca PLC

Fourth Quarter and Full Year Results 2007

'Earnings per share for the full year ahead of target. With the addition of six
new molecules to the late stage pipeline during 2007, there are now 10 projects
in Phase III development.'

Financial Highlights
Group                    4th Quarter  4th Quarter    Actual       CER      Full Year   Full Year    Actual       CER
                                2007         2006         %         %           2007        2006         %         %
                                  $m           $m                                 $m          $m

Sales                          8,170        7,154       +14        +8         29,559      26,475       +12        +7

Operating Profit               1,929        2,003        -4        -7          8,094       8,216        -1        -4

Profit before Tax              1,837        2,103       -13       -16          7,983       8,543        -7        -9

Earnings per Share             $0.86        $0.93        -7        -9          $3.74       $3.86        -3        -5

EPS, excluding                 $1.04        $0.93       +11       +10          $4.20       $3.86        +9        +7
restructuring and
synergy costs

Management also reports Core EPS, a supplemental non-IFRS measure which
management believes useful to understanding the Company's performance; it is
upon this measure that financial guidance for 2008 is based.  See page 11 for a
discussion of Core EPS and a reconciliation of 2007 Core EPS to reported EPS.



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

•    Sales for the full year increased 7 percent to $29,559 million.  The inclusion of MedImmune for seven months
     increased sales by 3 percent.  Excluding US sales of Toprol-XLTM from the current and the prior year, sales
     increased 10 percent.

•    Full year operating profit excluding restructuring and synergy costs was up 8 percent.

•    Earnings per share (excluding restructuring and synergy costs) were $4.20, ahead of the target of $3.98 to
     $4.13 per share.

•    The acquisition of MedImmune was successfully completed in June 2007 establishing AstraZeneca as a leader in
     biotechnology among our pharmaceutical peers.

•    Investment through the income statement in Research and Development increased for the full year to more than
     $5 billion. A record 36 new compounds were selected for development; 24 compounds progressed to first human
     exposure.  Six new compounds were added to the Phase III development pipeline in 2007, bringing the total to
     10 projects.

•    AstraZeneca expects to file licence applications for up to three new medicines in 2008. The Company believes
     its target to bring on average two new medicines to the market on an annual basis is achievable from 2010
     onwards.

•    Dividend increased by 9 percent to $1.87 for the full year.  Total cash distributions to shareholders
     increased by $444 million to $6,811 million.

David Brennan, Chief Executive Officer, said:  'The strong underlying results
for the full year reflect our determined action in three priority areas: our
pipeline is significantly stronger, with the acquisition of MedImmune creating a
leading position in biologics; key product sales have been robust in major
markets and we have achieved strong growth in the emerging markets; and
productivity initiatives, including the restructuring programme, are progressing
to plan.  I am confident that we are taking the right steps to better position
AstraZeneca as we, and the industry, encounter increasingly challenging market
conditions.'

London, 31 January 2008



Pictures of senior executives are available on www.newscast.co.uk.  Broadcast
footage of AstraZeneca products and activities is available on

www.thenewsmarket.com/astrazeneca.

Media Enquiries:          Steve Brown/Edel McCaffrey (London)          [phone]/5034
                          Staffan Ternby (Sodertalje)                  (8) 553 26107
                          Earl Whipple (Wilmington)                    [phone]

Analyst/Investor          Karl Hard/Jonathan Hunt (London)             [phone]/5087
Enquiries:
                          Staffan Ternby (Sodertalje)                  (8) 553 26107
                          Ed Seage/Jorgen Winroth (USA)                [phone]/[phone]
                          Peter Vozzo (MedImmune)                      [phone]


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



Full Year



Sales for the full year increased 7 percent at CER, or 12 percent on an as
reported basis (including a 5 percent positive impact from currency movements).
The contribution to sales growth from MedImmune more than offset the decline
from Toprol-XLTM in the US.  Sales in the US were up 7 percent, and this was
broadly similar to sales growth if Toprol-XLTM and MedImmune were excluded.
Sales in the Rest of World were up 8 percent, comprising growth of 5 percent in
Established Markets and 17 percent in Emerging Markets.



Operating profit for the full year was $8,094 million (down 4 percent).
Excluding restructuring and synergy costs, operating profit increased to $9,060
million (up 8 percent).  This operating profit improvement was net of a reported
$1,187 million increase in R&D investment, and was fuelled by revenue growth,
improved gross margin and lower expenditures in SG&A on a constant currency
basis.  Restructuring and synergy benefits of $300 million were realised during
the year.



Reported earnings per share for the full year were $3.74 compared with $3.86 in
2006.  Stripping out restructuring and synergy costs, the Company delivered
earnings per share of $4.20 compared with the Company's EPS guidance of $3.98 to
$4.13 on the same basis.



NexiumTM sales were slightly down for the full year to $5,216 million, a 2
percent decline.  Sales in the US were down 4 percent, as market share gains for
NexiumTM in the branded segment of the PPI market were offset by continued
strong growth of generic omeprazole and lower realised prices for NexiumTM.
NexiumTM sales in other markets were up 2 percent.



SeroquelTM sales increased 15 percent to $4,027 million, with sales in the US up
15 percent and sales up 16 percent in other markets.  The launch rollout of the
schizophrenia indication for Seroquel XRTM is underway, to be supported by an
extensive life cycle management programme.  Submissions for acute bipolar mania
and bipolar depression were made in the US last month.  European submissions are
scheduled for these indications during the first quarter of 2008. Filings for
major depressive disorder and generalised anxiety disorder in the US and Europe
are also planned for this year.



CrestorTM sales for the full year were up 33 percent to $2,796 million.  Sales
in the US were up 24 percent.  Sales in other markets increased 45 percent, and
now comprise half of the worldwide total for CrestorTM.  In November 2007,
CrestorTM received US FDA approval for a new indication, as an adjunct to diet
to slow the progression of atherosclerosis in patients with elevated
cholesterol.



ArimidexTM sales increased by 10 percent for the full year to $1,730 million,
growing at 13 percent in the US and 8 percent in other markets.



SymbicortTM sales for the full year were up 22 percent to $1,575 million,
including $50 million in the US since launch in June 2007.  In the US, Symbicort
TM share of patients newly starting fixed combination therapy was 11.5 percent
in the week ending 18 January, with a 5.8 percent share of all new prescriptions
for combination products.  Sales outside the US were up 18 percent for the full
year.





Fourth Quarter



Sales in the fourth quarter were $8,170 million, up 8 percent at CER, or 14
percent on an as reported basis (including an exchange benefit of 6 percent).
The inclusion of MedImmune more than offset the decline in Toprol-XLTM sales in
the US. Reported sales in the US were up 8 percent.  Reported sales in the Rest
of World increased 8 percent, as Established Markets were up 5 percent and
Emerging Markets saw growth of 18 percent.



Operating profit in the fourth quarter was $1,929 million (7 percent lower than
the fourth quarter last year).  Excluding restructuring and synergy costs,
operating profit increased to $2,291 million (up 11 percent).



Reported EPS for the fourth quarter 2007 was $0.86 compared with $0.93 last
year.  Excluding restructuring and synergy costs, earnings per share increased
10 percent at constant currency.



Enhancing Productivity



In the fourth quarter, restructuring and synergy costs of $362 million were
charged bringing the total for the full year to $966 million.  This represents
just under half of the total estimated combined programme costs of $1,975
million announced in 2007.



To date, $300 million in benefits have been realised towards the goal of $1,400
million in combined annualised savings from restructuring and synergies by 2010.



Research and Development Update



Significant progress in renewing the pipeline was made in 2007.  A record 36
compounds were selected to enter development compared with 22 in 2006.  Efforts
to reduce early attrition have resulted in 24 molecules entering first human
testing during the year, double the 12 achieved in 2006.  In parallel, the
Company has reduced the median development time for our projects by 18 months
and we are on track to deliver upper quartile industry development speeds by
2010.  10 supplemental registration packages were submitted to global regulatory
authorities during the year; approvals were received for a number of these
submissions in various jurisdictions, notably Seroquel XRTM for schizophrenia
and CrestorTM for atherosclerosis.



In 2008, the Company expects to file up to three first licence applications for
new chemical entities, and expects that a record number of projects will reach
proof of concept decision points by year-end. The Company believes its target to
bring on average two new medicines to the market on an annual basis is
achievable from 2010 onwards.



The purchase of MedImmune secured AstraZeneca's Biologics strategy, giving the
Company all the elements required to deliver a flow of biological medicines,
such as monoclonal antibodies and vaccines, to the market.  This is in line with
our previously stated objective that biologics should comprise 25 percent of all
late phase development projects from 2010.  A strategic review has been
conducted across all therapeutic areas, resulting in a redistribution of R&D
resources between small molecules and biologics and a rationalisation of our
therapeutic targets.  Small molecule efforts in respiratory and inflammatory
disease and cancer will be reduced. In particular, we will stop Discovery
activities in osteoarthritis disease modification and move out of cancer cell
cycle blockers as a therapeutic target.  The balance between increasing the
portfolio and the reshaping and efficiency gains we have achieved will result in
overall growth in R&D expenditures in high single digits in 2008.



An updated R&D pipeline table has been issued in conjunction with the
publication of this press release.  A copy of this table is available on the
Company's website, www.astrazeneca.com, under information for investors.



Future Prospects

The industry faces increasingly challenging market conditions, and the pricing
demands from payers and competition from generics in major therapeutic
categories will continue to pressure the top line.

In 2008, the Company aims to achieve constant currency sales growth in the low
to mid-single digits.  The uplift from the inclusion of a full year of sales
contribution from MedImmune will be broadly offset by the expected sales decline
from a full year of generic competition for Toprol-XLTM in the US market.  This
revenue growth, combined with continued realisation of the benefits of
restructuring and synergies and disciplined management of gross margin and SG&A
costs will enable continued investment in strengthening the pipeline, with
expenditures in R&D expected to increase at a high single digit rate.

The Company anticipates Core earnings per share for 2008 in the range of $4.40
to $4.70, compared with $4.38 in 2007.



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: the rate of growth in sales of generic competitors to Toprol-XLTM in
the US market, the rate of growth in sales of generic omeprazole in the US,
growth in currently marketed products (in particular CrestorTM, NexiumTM,
SeroquelTM, SymbicortTM and ArimidexTM), 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 2006 Annual
Report on Form 20-F.

Sales

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

Gastrointestinal
                                   Fourth Quarter              CER %        Full Year                CER %
                                      2007        2006                      2007        2006
                                        $m          $m                        $m
                                                                                          $m
NexiumTM                             1,303       1,430           -12       5,216       5,182            -2
LosecTM/PrilosecTM                     298         347           -20       1,143       1,371           -20
Total                                1,625       1,801           -14       6,443       6,631            -6


•    In the US, NexiumTM sales for the full year were $3,383 million, down 4 percent.  Estimated volume growth was
     2 percent for the year.  NexiumTM market share in the branded segment of the PPI market increased by 1.5
     percentage points in 2007, the only major brand to gain share; however, generic omeprazole's share of the
     prescription PPI market increased to 27.4 percent by December 2007, an increase of nearly 7 percentage points
     since December 2006.  Realised prices for NexiumTM declined by around 8 percent for the year.


•    In the fourth quarter, US sales of NexiumTM were down 18 percent, as an estimated underlying demand increase
     of 2 percent was offset by a large negative price variance.  Nearly 5 percentage points of the price variance
     is attributable to the favourable impact of the release of the TriCare provision in the fourth quarter of
     2006.  The balance of the price variance is attributable to lower contract prices exacerbated by a pronounced
     mix effect, arising from volumes shifting to customer segments with higher discounts and a declining
     proportion of non-contract sales; this shift in mix occurred over the course of the entire year, but is
     particularly evident in the fourth quarter year-on-year comparison. For 2008, average realised prices are
     expected to continue to decline, but not at the rate implied by the fourth quarter performance.


•    NexiumTM sales in other markets were up 2 percent for the full year to $1,833 million, as growth in Emerging
     Markets more than offset the declines in Western Europe.  Fourth quarter sales in other markets were
     unchanged compared with last year.


•    For 2008, the Company expects NexiumTM sales to be lower than 2007.


•    For the full year, PrilosecTM sales in the US were down 3 percent.  LosecTM sales in other markets were down
     24 percent, although sales increased in Japan and China.



Cardiovascular
                                   Fourth Quarter              CER %        Full Year                CER %
                                      2007        2006                      2007        2006

                                        $m          $m                        $m          $m
CrestorTM                              799         625           +21       2,796       2,028           +33
SelokenTM /Toprol-XLTM                 209         387           -50       1,438       1,795           -22
AtacandTM                              353         301            +7       1,287       1,110            +9
ZestrilTM                               67          78           -22         295         307           -10
PlendilTM                               66          65            -6         271         275            -7
Total                                1,656       1,609            -4       6,686       6,118            +5


•    In the US, CrestorTM sales for the full year were $1,424 million, a 24 percent increase over last year.
     Total prescriptions in the US statin market increased 8 percent for the year; CrestorTM prescriptions were up
     22 percent.  CrestorTM share of total prescriptions in the US was 8.6 percent in December.  US sales of
     CrestorTM in the fourth quarter were up 8 percent, broadly in line with prescription growth.


•    In November 2007, CrestorTM was approved for a new indication in the US, as an adjunct to diet to slow the
     progression of atherosclerosis in patients with elevated cholesterol.


•    On 15 January 2008, the Company announced the launch of a new clinical trial, SATURN.  SATURN will compare
     the effects of CrestorTM and atorvastatin on the ability to decrease progression or induce regression of
     atherosclerosis.


•    CrestorTM sales outside the US for the full year increased 45 percent to $1,372 million, nearly half the
     total worldwide sales for the product.  Sales were up 26 percent in Western Europe with good growth in France
     and Italy.  Sales in Canada increased 43 percent.  The launch in Japan continues to progress well, with
     CrestorTM achieving an 8.8 percent volume share in November 2007.


•    CrestorTM sales outside the US were up 38 percent in the fourth quarter.


•    US sales of the Toprol-XLTM product range, which includes sales of the authorised generic, were down 69
     percent in the fourth quarter and down 30 percent for the full year, as the full range of dosage strengths
     were subject to generic competition from August 2007.  Generic products accounted for 85 percent of dispensed
     prescriptions in the fourth quarter.


•    Sales of SelokenTM in other markets were down 2 percent in the fourth quarter, but were up 5 percent for the
     full year as a result of growth in Emerging Markets.


•    AtacandTM sales in the US were down 3 percent in the fourth quarter and were unchanged for the full year.


•    Sales of AtacandTM in other markets were up 10 percent in the fourth quarter and increased 12 percent for the
     full year.



Respiratory
                                   Fourth Quarter              CER %        Full Year                CER %
                                      2007        2006                      2007        2006

                                        $m          $m                        $m          $m
SymbicortTM                            436         323           +21       1,575       1,184           +22
PulmicortTM                            447         400            +8       1,454       1,292           +10
RhinocortTM                             87          90            -7         354         360            -4
OxisTM                                  22          23           -13          86          88           -10
AccolateTM                              19          22           -18          76          81            -7
Total                                1,056         899           +10       3,711       3,151           +12


•    SymbicortTM sales for the full year were up 22 percent to $1,575 million.  Sales in Western Europe were up 12
     percent in the fourth quarter and 16 percent for the full year, with market share up another point in the
     last 12 months, aided by the rollout of the SymbicortTM SMARTTM regimen and growth from use in COPD.  Good
     growth for the year was achieved in Canada (up 25 percent) and in Emerging Markets (up 26 percent).


•    SymbicortTM sales in the US were $50 million since launch at the end of June 2007. Specialist physicians have
     rapidly adopted the product; nearly 75 percent of allergists and more than 60 percent of pulmonary
     specialists in our target audience have prescribed SymbicortTM.  SymbicortTM share of new prescriptions for
     fixed combination products was 5.8 percent in the week ending 18 January; market share of patients newly
     starting combination therapy is 11.5 percent.


•    US sales of PulmicortTM increased 13 percent in the fourth quarter and 15 percent for the full year.
     PulmicortTM RespulesTM sales in the US were up by more than 20 percent for the full year, on estimated volume
     growth of 15 percent.  Of the approximately 6 million children under the age of 8 who are treated for asthma,
     more than 1 million benefit from treatment with PulmicortTM RespulesTM.


•    PulmicortTM sales in other markets were down 2 percent in the fourth quarter and were unchanged for the year.



Oncology
                                   Fourth Quarter              CER %        Full Year                CER %
                                      2007        2006                      2007        2006

                                        $m          $m                        $m          $m
ArimidexTM                             474         412            +8       1,730       1,508           +10
CasodexTM                              370         327            +6       1,335       1,206            +6
ZoladexTM                              307         272            +4       1,104       1,008            +4
IressaTM                                70          63            +6         238         237             -
FaslodexTM                              58          48           +13         214         186           +10
NolvadexTM                              24          23             -          83          89            -9
EthyolTM *                              16           -           n/m          43           -           n/m
Total                                1,339       1,157            +8       4,819       4,262            +8

* Sales of this MedImmune product are consolidated in AstraZeneca accounts from
  1 June 2007.  As a result, there are no prior period sales included.

•    In the US, sales of ArimidexTM in the fourth quarter were up 7 percent, and for the full year sales increased
     13 percent to $694 million.  Total prescriptions for ArimidexTM increased nearly 5.3 percent compared with
     1.3 percent growth in the market for hormonal treatments for breast cancer.


•    In November 2007, the Company announced that the US FDA has granted an additional six-month period of
     exclusivity to market ArimidexTM for its licensed breast cancer indications until June 2010.


•    ArimidexTM sales in other markets increased 9 percent in the fourth quarter and were up 8 percent for the
     full year to $1,036 million.  Sales for the full year were up 6 percent in Western Europe and increased 9
     percent in Japan.


•    CasodexTM sales in the US for the full year were up 1 percent.  Sales in other markets, which account for
     more than 75 percent of product sales, were up 8 percent, on 6 percent growth in Western Europe and 13
     percent sales growth in Japan.


•    IressaTM sales were unchanged for the full year.  Sales in Japan increased 4 percent for the year; sales in
     China were up 24 percent.


•    FaslodexTM sales increased 10 percent to $214 million for the full year, on growth of 3 percent in the US and
     18 percent in other markets.



Neuroscience
                                   Fourth Quarter              CER %        Full Year                CER %
                                      2007        2006                      2007        2006
                                        $m          $m                        $m          $m

SeroquelTM                           1,086         912           +15       4,027       3,416           +15
ZomigTM                                114         103            +4         434         398            +5
Total                                1,449       1,240           +12       5,340       4,704           +10


•    In the US, SeroquelTM sales were up 16 percent in the fourth quarter and 15 percent for the full year.  Total
     prescriptions for SeroquelTM increased 10 percent for the year, more than twice the market rate.  Market
     share of total prescriptions in the US antipsychotic market increased to 31.8 percent in December 2007, up
     1.3 points in the last 12 months, with a third of the increase attributable to Seroquel XRTM in the 5 months
     since launch in August.


•    SeroquelTM sales in other markets were up 14 percent in the fourth quarter and up 16 percent for the full
     year   as a result of market share gains in most markets.


•    The Mutual Recognition Procedure in Europe for Seroquel XRTM was completed in December, and the Company is
     now progressing towards securing national licences.  An extensive life cycle management programme supporting
     Seroquel XRTM is underway.  Submissions for acute bipolar mania and bipolar depression were made in the US in
     December 2007.  European submissions are scheduled for these indications during the first quarter of 2008.
     Filings for major depressive disorder and generalised anxiety disorder are also planned for this year in the
     US and Europe.


•    ZomigTM sales for the full year increased 5 percent in the US and 4 percent in other markets.



Infection and Other
                                   Fourth Quarter              CER %        Full Year                CER %
                                      2007        2006                      2007        2006
                                        $m          $m                        $m          $m

SynagisTM*                             480           -           n/m         618           -           n/m
MerremTM                               215         167           +18         773         604           +20
FluMistTM*                              53           -           n/m          53           -           n/m
Total                                  816         248          +220       1,714         875           +89

* Sales of these MedImmune products are consolidated in AstraZeneca accounts
  from 1 June 2007.  As a result, there are no prior period sales included.

•    Sales of SynagisTM totalled $480 million in the fourth quarter.  US sales were $391 million; sales outside
     the US were $89 million.  There are no corresponding sales recorded in the AstraZeneca accounts in the prior
     year; on a pro-forma basis, SynagisTM sales are 5 percent ahead of the fourth quarter last year.  SynagisTM
     sales are highly seasonal, with the majority of sales recorded in the fourth and first quarters.


•    Sales of FluMistTM were $53 million for the full year, all of which were recorded in the fourth quarter.  As
     with SynagisTM, there are no corresponding sales in the AstraZeneca accounts in the prior year; on a
     pro-forma basis, FluMistTM sales for the 2007/08 influenza season to date are 56 percent ahead of the
     comparable period in 2006/07.



Geographic Sales
                               Fourth Quarter               CER %         Full Year                 CER %
                                  2007         2006                       2007         2006
                                    $m           $m                         $m           $m

North America                    3,996        3,653            +8       14,511       13,480            +7
  US                             3,665        3,390            +8       13,366       12,449            +7
Established ROW*                 3,194        2,745            +5       11,491       10,131            +5
Emerging ROW                       980          756           +18        3,557        2,864           +17

*Established ROW comprises Western Europe (including France, UK, Germany, Italy,
 Sweden and others), Japan, Australia and New Zealand.

•    Sales in the US were up 7 percent for the full year, with this growth rate remaining broadly unchanged after
     adjusting for managed market accruals, inventory movements and provision movements.  The addition of 7 months
     sales of MedImmune accounts for 3 percent of the increase.  Excluding MedImmune and Toprol-XLTM from the
     current and prior year, sales grew at 7 percent.  Growth in SeroquelTM, CrestorTM, ArimidexTM and SymbicortTM
     more than offset the sales declines for Toprol-XLTM and NexiumTM.


•    Sales growth in the Established Rest of World segment was 5 percent for the full year.  Sales in Western
     Europe were up 3 percent (1 percent excluding SynagisTM), with good growth from SymbicortTM, CrestorTM,
     SeroquelTM and the oncology products more than offsetting declines in the PPI products.  Sales in Japan were
     up 11 percent, with most of the growth attributable to CrestorTM and the oncology products.


•    Sales in Emerging Markets increased 17 percent for the full year, accounting for nearly 45 percent of total
     Company sales growth outside the US market.  Sales in Emerging Europe were up 12 percent.  Sales in China
     increased by 28 percent.


Operating Review

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



Fourth Quarter

Reported sales increased by 14 percent and operating profit fell by 4 percent.
At constant exchange rates, sales increased by 8 percent and operating profit
fell by 7 percent. Currency movements therefore increased sales by 6 percent and
operating profit by 3 percent. In comparison to last year, the dollar was 11
percent weaker against the euro, increasing sales, and also against the Swedish
krona (9 percent) and sterling (6 percent), increasing costs.  The net effect of
these currency movements was a positive impact of 2 cents on reported earnings
per share.



As shown in the table below, when the impact of restructuring and synergy costs
and MedImmune operating profit is excluded, operating profit increased by 4
percent and earnings per share by 13 percent.


Quarter Four                                       Operating      CER %        EPS      CER %
                                                      Profit
                                                          $m

Reported                                              1,929          -7      $0.86         -9
Restructuring and Synergy Costs                         362         n/a      $0.18        n/a
Reported, excluding restructuring and synergy         2,291         +11      $1.04        +10
costs
MedImmune                                              (137)        n/a      $0.03        n/a
Underlying                                            2,154          +4      $1.07        +13



In the fourth quarter, reported operating margin was 23.6 percent. Excluding
restructuring and synergy costs of $362 million and the MedImmune operating
profit of $137 million (which excludes the impact of costs relating to the
achievement of synergies), underlying operating margin was 28.3 percent, an
increase of 0.3 percentage points on the fourth quarter in 2006 (see table
below).


Quarter Four                   Reported % Restructuring and    MedImmune $m Underlying % Change versus
                                 of sales     synergy costs                     of sales           PY*
                                                         $m

Gross Margin                         77.7              (95)            366          79.8          +1.9
Distribution                          0.8                 -             (2)          0.9          -0.1
R&D                                  17.5              (36)            (60)         17.5          -1.8
SG&A                                 37.4             (231)           (247)         33.8          +1.3
Other Operating Income                1.6                 -             80           0.7          -1.0
Operating Profit                     23.6             (362)            137          28.3          +0.3

* Positive number indicates favourable effect on operating profit margin versus
prior year.



Underlying gross margin of 79.8 percent in quarter four is 1.9 percentage points
higher than last year. Principal contributors were asset provisions, totalling
$108 million, being recorded in the prior period (1.5 percentage points) and
lower payments to Merck (1.3 percentage points). Adverse impacts arose from
currency and increased royalty payments, which led to a combined 0.6 percentage
point reduction.



Underlying R&D expenditure was $1,336 million in the fourth quarter, up 11
percent over last year due principally to increased activity levels and the
effect of the externalisation strategy, particularly the collaboration with
Bristol-Myers Squibb.



Underlying SG&A costs of $2,577 million were 4 percent lower than quarter four
in 2006, due to continued operational efficiencies and realisation of the
initial benefits from the Company's productivity initiatives.



Underlying other income of $54 million was $69 million lower than the fourth
quarter in 2006, which included the divestment of 17 non-core products in
Scandinavia and higher royalty income.



MedImmune contributed an operating profit of $137 million (which includes
amortisation costs of $115 million) during the fourth quarter, compared with a
loss of $212 million in the third quarter (which also included amortisation of
$105 million). This reflects the seasonal bias in MedImmune's principal business
activities.



Full Year

Reported sales increased by 12 percent and operating profit fell by 1 percent.
At constant exchange rates, sales increased by 7 percent and operating profit
fell by 4 percent. Currency movements increased reported sales by 5 percent and
operating profit by 3 percent. Cumulatively, exchange has increased earnings per
share by 7 cents.



As shown in the table below, when the effect of restructuring and synergy costs
and MedImmune operating loss is excluded, operating profit increased by 10
percent and earnings per share increased by 15 percent.


Year                                               Operating     CER  %        EPS     CER  %
                                                      Profit
                                                          $m

Reported                                               8,094         -4      $3.74         -5
Restructuring and Synergy Costs                          966        n/a      $0.46        n/a
Reported, excluding restructuring and synergy          9,060         +8      $4.20         +7
costs
MedImmune                                                178        n/a      $0.32        n/a
Underlying                                             9,238        +10      $4.52        +15





For the full year, reported operating margin was 27.4 percent.  Excluding
restructuring and synergy costs of $966 million and the MedImmune operating loss
of $178 million (which excludes the impact of costs relating to the achievement
of synergies), underlying operating margin was 32.0 percent, an increase of 1.0
percentage points on 2006 (see table below).




Year                           Reported % Restructuring and       MedImmune Underlying % Change versus
                                 of sales     synergy costs                     of sales           PY*
                                                         $m              $m

Gross Margin                         78.3             (415)            472          80.0          +1.0
Distribution                          0.8                 -             (4)          0.8          +0.1
R&D                                  17.5              (73)           (255)         16.8          -2.1
SG&A                                 35.1             (478)           (560)         32.3          +2.1
Other Operating Income                2.5                 -            169           1.9          -0.1
Operating Profit                     27.4             (966)           (178)         32.0          +1.0

* Positive number indicates favourable effect on operating profit margin versus
prior year.


Underlying gross margin increased by 1.0 percentage points to 80.0 percent.
Principal drivers included improved efficiencies, reduced payments to Merck (0.7
percentage points), asset provisions booked during the prior period (0.4
percentage points) and favourable currency movements (0.2 percentage points). An
adverse effect arose from increased royalty payments, which led to a 0.4
percentage point reduction.



Underlying R&D expenditure was $4,834 million in 2007, up 16 percent over last
year due principally to increased activity levels and the effect of the
externalisation strategy.



Underlying SG&A costs were 2 percent lower than the same period in 2006,
primarily as a result of operational efficiencies from our selling and marketing
activities.



Underlying other income of $559 million was $35 million higher than 2006, as
expected reductions in royalty income were more than offset by higher one-time
gains and the insurance recoveries in the first quarter of 2007.



MedImmune contributed an operating loss of $178 million (which includes
amortisation costs of $255 million) for the full year.



Restructuring and Synergy Programmes Update

At the half year, the Company provided details of the various productivity
initiatives being undertaken to enhance the long-term efficiency of the business
along with the synergies arising as a result of the acquisition of MedImmune.
Following the integration of MedImmune, the Company is now managing these
programmes on a combined basis.  The restructuring and synergy costs are
expected to be $1,975 million, with estimated annual benefits of $1,400 million
targeted by 2010.

As of 31 December, total charges of $966 million have been taken in respect of
these programmes, of which $723 million represents cash costs. Over the same
period, productivity initiative benefits of $250 million and synergy benefits of
$50 million have been realised.


All individual programmes continue to progress to plan, with forecasts for the
total costs and benefits associated with each initiative remaining in accordance
with the guidance issued in the second quarter and half year press release. Of
the remaining $1 billion of cost, approximately two thirds is expected to be
incurred in 2008, with the balance in 2009 and 2010. Of the anticipated annual
benefits of $1,400 million by 2010, cumulatively two thirds will be realised in
2008.

Toprol-XLTM

In 2007, Toprol-XLTM contributed US sales of $969 million (2006: $1,382 million)
and EPS of 39 cents (2006: 50 cents).  If Toprol-XLTM were excluded from the
full year results for both the current and prior year periods, sales growth
would be 10 percent (versus 7 percent on an overall basis) and EPS would be down
3 percent (compared with a 5 percent overall decrease).  Using the same basis in
the fourth quarter, sales would be up 11 percent (compared with a 8 percent
overall increase) and EPS would be down 2 percent (compared with a 9 percent
overall decline).

Finance Income and Expense

Net interest expense was $92 million for the fourth quarter (2006 income: $100
million) and $111 million for the full year (2006 income: $327 million). The
decrease versus last year is primarily attributable to the interest payable on
the borrowings to acquire MedImmune, Inc.  Interest expense on the new debt was
$203 million in the fourth quarter and $446 million for the full year. The
reported amounts include net income of $13 million (2006: $9 million) in the
fourth quarter, and $34 million (2006: $43 million) in the full year, arising
from employee benefit fund assets and liabilities reported under IAS 19, '
Employee Benefits'.

Taxation

The effective tax rate for the year was 29.5 percent (30.6 percent for the
quarter) compared with 29.0 percent (31.3 percent for the quarter) for 2006.
The slight increase for the year compared to 2006 reflects the combined effect
of differences in the geographical mix of profits, the reversal of tax
deductions relating to share based payments, the reduction in the UK tax rate as
applied to UK net deferred tax liabilities, and an increase in tax provisions
principally in relation to global transfer pricing. The full year tax rate for
2008 is anticipated to be around 29.5 percent.

Cash Flow

Cash generated from operating activities was $7,510 million in 2007, only
slightly down on 2006 ($7,693 million).  The small decrease in operating profit
was compensated for by an increase in non-cash items ($638 million principally
from unspent restructuring costs) and depreciation, amortisation and impairment
($511 million).  These compensating effects were offset by an increase in
working capital requirements of $551 million and additional tax and interest
payments ($394 million and $265 million respectively).

Net cash outflows from investing activities were $14,887 million in 2007
compared to $272 million in 2006 due primarily to the acquisition of MedImmune,
Inc.; other acquisitions in 2007 included Arrow Therapeutics Limited, Atlantis
Components Inc. and Denics International Co. Ltd.

Cash distributions to shareholders were $6,811 million (through share
repurchases of $4,170 million and dividend payments of $2,641 million).

Net funds of $6,537 million at the beginning of the year have become net debt of
$9,112 million by the end of the year due to the acquisition of MedImmune Inc.,
which has been substantially financed through new debt.

Investments

New investments completed during the fourth quarter include:

In October, the Company's Astra Tech Group completed the acquisition of Atlantis
Components Inc. An intangible asset has been recognised for $106 million,
relating to specialist CAD/CAM Technology used to design and manufacture bespoke
dental implant abutments.



In December, Astra Tech also acquired Denics International Co. Ltd, which was
previously their Japanese distributor and has strategic importance for the
company's expansion into Asia. The Company has capitalised an intangible asset
of $15 million in relation to the acquisition.



Core Earnings per Share

Management believes that investors' understanding of the Company's performance
is enhanced by the disclosure of Core EPS.  The Core EPS measure is adjusted to
exclude certain significant items, such as charges and provisions related to
restructuring and synergy programmes, amortisation of the significant
intangibles arising from corporate acquisitions and those related to our current
and future exit arrangements with Merck in the US, and other specified items.
Core EPS is not, and should not be viewed as, a substitute for EPS in accordance
with IFRS.

The reconciliation of fourth quarter and full year Core EPS to reported earnings
per share is provided below:

                                                4th        4th       CER        Full Year    Full Year       CER
                                            Quarter    Quarter
                                               2007       2006         %             2007         2006         %
                                               

Reported EPS                                  $0.86      $0.93        -9            $3.74        $3.86        -5

Restructuring and Synergy Costs               $0.18          -       n/a            $0.46            -       n/a

Amortisation of intangible assets
  MedImmune acquisition                       $0.05          -       n/a            $0.12            -       n/a
  Merck arrangements                          $0.01      $0.01         -            $0.06        $0.06         -

Core EPS                                      $1.10      $0.94       +16            $4.38        $3.92       +10



The Company intends to issue guidance on a Core basis in 2008. To further aid
investors' understanding of this metric, a reconciliation between reported and
Core earnings for 2007 is shown below.


                                     Reported    Restructuring         MedImmune    Merck            Core
                                           $m    $m                 Amortisation    Amortisation     $m
                                                                              $m    $m

Operating Profit                       8,094               966              255               96         9,411
Net interest expense                    (111)                -                -                -          (111)
Profit before tax                      7,983               966              255               96         9,300

Taxation                              (2,356)             (285)             (75)               -        (2,716)
Profit after tax                       5,627               681              180               96         6,584

Minority interests                       (32)                -                -                -           (32)
Net profit                             5,595               681              180               96         6,552

Weighted average number of             1,495             1,495            1,495            1,495         1,495
Ordinary shares in issue
(millions)
Earnings Per Share                     $3.74             $0.46            $0.12            $0.06         $4.38

Debt and Capital Structure

During November, the Company issued two further bonds as part of its
re-financing programme, following the $6.9 billion, 4-tranche SEC Global and EUR
750 million Eurobond transactions in September. The bonds were issued under a
Euro Medium Term Note Programme, and consisted of a long dated sterling issue
and a 3 year fixed rate Eurobond, as follows:



  • GBP 350 million 5.75% Notes due 2031
  • EUR 750 million 4.625% Notes due 2010



In addition, the Company cancelled, in full, the initial $15 billion bridge
facility and replaced it with a total of $5.15 billion in committed bank
facilities, with maturities of 1 and 5 years.



As at 31 December 2007, outstanding gross debt (including loans, short-term
borrowings and overdrafts) is $15,156 million, of which $10,876 million is long
term (greater than 12 months).  Outstanding net debt is $9,112 million.

Dividends and Shareholder Return

The Board has recommended a 10 percent increase in the second interim dividend
to $1.35 (67.7 pence, 8.61 SEK) to be paid on 17 March 2008.  This brings the
full year dividend to $1.87 (93.0 pence, 12.10 SEK) an increase of 9 percent.

The Board's dividend policy is unchanged; it is intended that the dividend will
continue to grow in line with reported earnings (before restructuring and
synergy costs), with an aim to maintain at least two times dividend cover.

Share Repurchase Programme

During the fourth quarter, 18.3 million shares were re-purchased for
cancellation at a total cost of $876 million, bringing the total re-purchases
for the year to 79.9 million shares at a total cost of $4,170 million. Shares
issued during the year were 4.7 million in consideration of share option
exercises for a total of $218 million.

The total number of shares in issue at 31 December 2007 was 1,457 million.

The share re-purchase programme is calculated to have added 8 cents to EPS
during the year, after allowing for an estimate of interest income foregone.



The Board's distribution policy and its overall financial strategy is to strike
a balance between the interests of the business, our shareholders and our
financial creditors, whilst maintaining a strong investment grade credit rating.
The Board expects to undertake share repurchases in the region of $1 billion in
2008, subject to business needs.



Calendar

24 April 2008                Announcement of first quarter 2008 results

24 April 2008                Annual General Meeting

31 July 2008                 Announcement of second quarter and half year 2008 results

30 October 2008              Announcement of third quarter and nine months 2008 results


David Brennan

Chief Executive Officer


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