An Introduction to: Research & Development R&D Facts > > > (increasing from 18 (around $14mspent ea ~12,000 people AstraZeneca R&Demploys in 2005 the early development portfolio 25 candidate drugsadded to billion in2005 R&D investment totaled$3.4 • • • in Japan 1 facilityforclinical development Canada, IndiaandFrance; 4 Discoverysitesin theUS, the USandSweden; intheUK, facilities Development 6 major joint Discoveryand in 2004 /15in 2003) ch workingday) > (200+ new deals capabilities complement our in-house collaborations and agreements More than1,700 externalR&D in 2005alone)

Research & Development Overview AstraZeneca Board issues. business and critical performance of financial regular review policies, and governance, corporate strategy, Oversees Non-Executive Director Dame Nancy Rothwell Professor Officer Chief Executive Executive Director David Brennan Development Executive Director John Patterson Non-Executive Director Michele Hooper Non-Executive Director Jane Henney Deputy Chairman Non-Executive Mogren Håkan Non-Executive Chairman Louis Schweitzer Non-Executive Director Joe Jimenez Non-Executive Director Möller Erna Director Senior Non-Executive Sir PeterBonfield Chief FinancialOfficer Executive Director Jonathan Symonds Non-Executive Director John Buchanan Non-Executive Director John Varley Non-Executive Director Marcus Wallenberg

Research & Development Overview Sales &Marketing Senior Executive Team(SET) Organisation International ot mrc lblMreigOperations GlobalMarketing North America Development Global Drug Chairman (CEO) Discovery Research Global Business Dev. & Strategy, IS & Strategy, Finance, Resources Human

Research & Development Overview (right) Research Discovery Jan Lundberg, EVP, Development (left) Executive Director, John Patterson, R&D Vision and improve patients'lives. medicines that makeadifference discover, develop,anddeliver science andinnovationto vision istocombineworld-class pharmaceutical company, R&D's As partofaleadingethical

Research & Development Overview Cancer & Infection Global Discovery Research Global Safety Assessment Cardiovascular & Gastrointestinal & Project Evaluation Evaluation & Project Strategy, Portfolio Science Relations Global DiscoveryResearch Global Discovery Information Executive VP (Jan Lundberg) CNS &Pain Human Resources Finance Global Process R&D Respiratory & Inflammation Inflammation Enabling Capabilities Global Discovery & Sciences

Research & Development Overview Global Discovery Research prevent and treat those diseases. human diseases andhow futu of understanding abetter and basic sciencetoform toupgrade thelinks effort we aremaking an Through ‘DiscoveryMedicine’ earlier go/no-go decisions. techniques toincrease We areutilisingbiomarkers andfrontloading rate ofthosecompoun in theprocesswe intendtoincreasethesuccess Through increasedsafetyandquality testingearlier selected tomoveforw In 200525newCandidateDrugs (CD)were employees. Discovery consists ofmorethan5,500 ard intoDevelopment. ard ds enteringDevelopment. success ratesand reach between clinicalmedicine re drugs willworkto

Research & Development Overview Neuroscience Regulatory Global DrugDevelopment Gastrointestinal Cardiovascular/ Human Resources Development Clinical Clinical Finance Executive Director Development (John Patterson) Therapy Areas Oncology/ Infection Japan R&D Chief Medical Officer Officer Chief Medical Development Affairs Inflammation Respiratory/ PAR&D New Opportunities Projects Development

Research & Development Overview Global DrugDevelopment Development Projects identification ofdecision making and risk strengthening areas focustoindividual projectsaswell as greater project management and po to growthebusiness. finding anddeliveringaflowofvaluable medicines Build aworld-leadingdevel employees. Development consists are differentiated, comp Development aims tobring By deliveringthe AstraZenecaportfolio priced in all major markets priced inallmajor was established toimprove of morethan6,000 etitive and appropriately etitive andappropriately opment organisationby rtfolio planningby giving rtfolio drugs for approvalthat drugs for

Research & Development Overview Areas ofMedical Focus healthcare. in theworldof make adifference medicines that development of the researchand our commitmentto innovation drives health and Our passionfor > > > > > New Opportunities Respiratory and Inflammation Neuroscience Oncology andInfection Cardiovascular andGastrointestinal

Research & Development Overview AZ R&Dinvestment, $m Investment as % of sales: Investment as%of 1,000 1,500 2,000 3,000 3,500 2,500 500 0 63 72 83 62 14.1% 16.2% 18.3% 17.2% 16.3% 2,687 0120 0320 2005 2004 2003 2002 2001 3,069 *new accounting standards clinical phase IV no longer included longer IV no phase clinical standards accounting *new 3,451 3,467 3,379*

Research & Development Overview by Therapeutic Area 2005 Revenues Revenue: $23.95m Revenue: Infection 2% Oncology 17% Gastrointestinal 27% Gastrointestinal Other 3% Respiratory 12% Cardiovascular 22% Neuroscience 17%

Research & Development Overview R&D Process Target Id. Hit Id. DISCOVERY LED DISCOVERY Lead Id. Lead Opt. nom. Pre- Preclin. the market withdrawal from from earlydiscoveryto a project'slifecycle, The R&Dprocessoutlines Dev. Principle Testing DEVELOPMENT LED DEVELOPMENT Concept testing Dev. for Launch and PLC Launch GM LED Maint. Prod.

Research & Development Overview A UniqueContribution > > > > and peoplearelivinglonger populations continuetoincrease healthcare— demand for There isacontinuedgrowing patients in a medicine beforeit reaches Approximately $900million invested over 90%ofnewmedicines for industryis thesource The pharma expensive andriskyprocess medicine isalong,complex, Discovering anddevelopinganew • • only averyfewmake it compounds withmedi Out ofmore thanamillion and stateofthe involving highly sk Takes approximately 12years art technologies. illed scientists cal potential, *All stats are industry wide *All stats areindustry

Research & Development Overview Patient safety fundamental priority. always beena medicines has who takeour safety ofpatients At AstraZeneca,the > > > > > professionals and healthcare regulatory agencies Clear and opencommunication with and scientists Dedicated drug safety physicians market monitor useof medicinesonthe and trials, regulatoryagencies Gather informationthrough clinical launch Continuous assessmentafter Focus fromDiscoverytolaunch

Research & Development Overview AstraZeneca Pipeline AZD3102 AZD8593 AZD6370 AZD8450 AZD8081 AZD3783 AZD8797 AZD6538 AZD3102 AZD8081 AZD4121 AZD1305 AZD2207 AZD1175 AZD8593 AZD6370 AZD8450 AZD9335 AZD8931 AZD0424 AZD9935 AZD7512 AZD3241 AZD9335 AZD6703 AZD6067 AZD3646 AZD8330 AZD1845 AZD5180 AZD7762 AZD4877 AZD1940 41 Pre-Clinical (TD4756 Theravance) AZD7928 AZD3825 AZD1744 AZD2392 AZD7928 AZD6357 AZD3043 AZD6605 AZD1678 AZD9215 AZD9668 AZD5069 AZD4818 AZD1236 AZD8677 AZD6610 AZD6244 AZD6244 AZD9272 AZD9272 AZD3355 AZD8677 AZD6610 AZD2479 AZD4769 AZD1152 AZD0530 AZD1080 AZD5904 AZD2327 AZD9272 (Array) 20 Phase I (KU59436) AZD5904 AZD5672 AZD1981 AZD3342 AZD8309 AZD8309 AZD1689 AZD2281 (AQ4N) PhaseII (ARRY-142886) CytoFab™ Zactima™ (Patrin™) AZD8955 AZD9056 AZD9056 AZD5896 AZD3480 AZD9056 AZD0837 AZD9684 AZD7009 AZD6244 ZD4054 13 Phase III Zactima™ AGI-1067 AZD2171 AZD2171 AZD6140 NXY-059 Next update topipeline will occur following 2006 Annual Results 4 5 Toprol X-L™ Seloken™/ Atacand™ Nexium™ Nexium™ Nexium™ Nexium™ Nexium™ Crestor™ Crestor™ Crestor™ Atacand Plus™ Data currentas ofJune 8,2006 eoul SR Seroquel™ Turbuhaler™ Symbicort™ Symbicort™ Symbicort™ Faslodex™ Faslodex™ Faslodex™ Seroquel™ Seroquel™ Seroquel™ Seroquel™ Iressa Iressa™ Iressa™ LCM pMDI pMDI 24 SR SR

Research & Development™ Overview Pipeline Growth and commerciallysuccessful products tothemarketeveryyear. We arecommittedtodelivering morenew,medicallyimportant Target 2004: 2005: Id. Hit Id. candidate drugs: New 25 18 Lead Id. Lead Opt. pre-clinical pre-clinical Projects phase: in the 45 31 nom. Pre- Preclin. Dev. in clinical phase 1: Projects Principle 17 17 Testing Concept testing in clinical Projects phase 2 15 Dev. for 17 Launch and PLC Launch in clinical Projects phase 3 29 25 Maint. Prod.

Research & Development Overview alliances R&Dis… Through ourcollaborations and > > > > Increasing R&Dproductivity products medical need &differentiated future demands onunmet Boosting innovationto meet our patients. both companies and,ultimately, maximum benefit andvalueto true partnerships whichprovide Creating strategic alliancesand development Providing richchoiceforclinical • • more projects inPhaseI&II more projects with highqualitycriteria increase inCDdelivery

Research & Development Overview Biologicals Strategy 25% Biologicals for full development by 2010 Speed through pre-clinicaldevelopment trto aev small molecules Attrition rate vs Likely outputsfromAbgenix* Likely Likely outputsfromothers Likely Likely outputsfromCAT Likely + + + + *now Amgen

Research & Development Overview AstraZeneca Global R&DSites R&D investment in 2005: ~$3.4 bn R&D investment in 7countries 11 siteslocatedin 12,000peopleat Globally managedresearchorganization employing Wilmington Montreal Boston lelyPark Alderley Charnwood Reims Mölndal Södertälje Bangalore Innovation Centre China Osaka

Research & Development Overview Culture &Organisational Behaviours > > > > a competitive global business brings. meeting thechallenges thatworkingin full potential andfeelconfident of We want ourpeopleto achievetheir contribution. rewards teamand individual culture thatvalues, supportsand talent withinaperformance-based We aimtoattract andkeepthebest they bringtoourbusiness. and thecreativitycommitment that Good ideasdependongoodpeople medicines. into innovative,effective Our successisbasedonturning ideas

Research & Development Overview Key FocusAreas Short Term Long Term Mid Term • • • • • • • • and deliverPhaseIII Drive LifeCycleManagement Externalisation R&D inemerging markets Biologicals Small molecules pipeline targets Deliver against aggressive Externalisation speed Increasing successrate&

Research & Development Overview An Introduction to: Research & Development Appendices Maintenance Target Identification toProduct Therapy Area (1 Slide) activities from1913to2006 and in-licensing collaborations descriptions of recent as well assurvey results and Collaboration (11 slides) Outline oftheR&D R&D Process (7 slides) Descriptions ofeachAstraZeneca Therapy Areas Timeline outliningAstraZeneca History (8 slides) Slides outlining collaboration activities Core Processfrom (3 slides) graphs (7 slides) in class Areas contributionsas (1 slide) molecule existing small complimenting our biologics around AstraZeneca strategy Pipeline (14 slides) as thestudylabsacrossglobe Descriptions ofthe Locations Biologicals R&D Cost/ Time/Attritioncharts, Challenges Pipeline slidesshowingeachTherapy research R&D sitesaswell wellasbest/first

Research & Development Overview History to returnAppendiceslisting Click inslideshowmode

Research & Development Overview in Stockholm Astra ABfounded 1913 AstraZeneca History formed inLondon formed Industries PLC Imperial Chemical 1926 research pharmaceutical ICI begins 1936 established Astra USA 1947 PLC division pharmaceuticals ICI creates 1957 ASTRA AB begins operation Astra Merck Inc.(AMI) 1994 prescription medicine world’s top-selling LOSEC becomes 1997 headquarters Industries and movesU.S. ICI buysAtlas Chemical 1972 merge and AMI Astra USA 1998 merger announce Zeneca PLC Astra ABand 1998 to Delaware to Novartis toform intent tospin off agrochemicals operations on business and June 1, 1999 1, June AstraZeneca completed— commercial Announced Announced merge with specialties specialties Syngenta business Sale of Avecia 1999 begins treatments novel cancer generate ability to enhances acquisition KuDOS 2005 therapeutics in biological investment strategic acquisition CAT 2006

Research & Development Overview Therapy Areas to returnAppendiceslisting Click inslideshowmode

Research & Development Overview Cardiovascular diabetes, cardiac arrhyt currently working totreatdisorders area ofCV,being thepioneeringinnovat Over thepast40 yearswehave Innovation: year, makingitthegreatest Cardiovascular disease Need: Mölndal, ;AlderleyPark, UK Main Locations: hmia andthrombosis. accounts for some 17milliondeathseach accounts for risktolifeformostadults Unimax, Zestril Tenormin, Ramace, Zestoretic, Lexxel, Logimax, Nif-Ten, Plendil, Inderal, XL,Imdur, ZOK/Toprol Seloken Atacand, Crestor, Results: made tremendous headwayinthe made tremendous such as high cholesterol, type2 such ashighcholesterol, or inbetablockersweare or

Research & Development Overview Gastrointestinal discovering new uses fo working withongoing developmentactivitiesinGERD andtowards intheareaof pr Already aleader Innovation: been diagnosedwithgastro-oes world,betwee In theWestern Need: Mölndal, Sweden Main Location: r our current products. current our r Results: n 10%and20%ofadultshave Entocort, Losec/Prilosec, Nexium Entocort, ophageal refluxdisease oton pumpinhibitors weare

Research & Development Overview Cancer including targeting tumour vasculature. including targeting tumour ofthediseaseusing and spread cancer Working onsolid tumour Innovation: of deathsworldwide Seven millionpeoplediefrom Need: Boston, US;AlderleyPark,UK Main Locations: Nolvadex, Tomudex,Zoladex Arimidex, Casodex, Faslodex, Iressa, Results: cancer every year—over 12% everyyear—over cancer s to control growth,invasion s tocontrol a widevarietyof approaches

Research & Development Overview Infection Working on combating resistant bacteria with broad spectrum Working oncombating resistant Innovation: Infectious diseasescausemorethan11milliondeathseachyear Need: Boston, US;Bangalore,India Main Locations: Apatef, Merrem Results: tuberculosis research. Bangalore faci based while our working inthearea ofhospital Bostonfacilityis therapies our lity focuseson

Research & Development Overview Neuroscience disorders (neurological research, disorders (neurological research, in Aim tobealeading player Innovation: many people'slives asignificantareaofmedicalneedthattouches (CNS) represent Problems relatingtothefunction Need: Montreal, Canada; Wilmington, Main Locations: theareaofCNS andbrain Seroquel, Vivalan, Xylocaine, Zomig Inderal, Marcaine, Mysoline, Naropin, EMLA, Carbocaine, Citanest,Diprivan, Results: disease and depression. pain, migraine,Alzheimer’s diseases) including treatmentsfor of thecentralnervoussystem pain researchand psychiatric USA;Södertälje,Sweden

Research & Development Overview Respiratory &Inflammation asthma and COPD, research is respiratory diseases. AlongwithasthmaandCOPD, research approach current treatmentsaswell We arecontinually workingto Innovation: globally obstructive pulmonarydiseaseis the 100 millionpeopleworldwidesuffe Need: Lund, Sweden;Charnwood,UK; AlderleyPark,UK Main Locations: Pulmicort, Rhinocort ,Symbicort Accolate, Bambec,Bricanyl, Oxis, Results: such as osteoarthritis. areasofneed focused onother findnewandinnovative waysto r from asthma and chronic fromasthmaandchronic r as discover new therapies for as discovernew therapies for fourth greatestcauseofdeath fourth

Research & Development Overview New Opportunities are open to the vast array ofopportunitiesinhealthcare. are opentothevastarray The futuresecurityandsuccess Spanning allareas medical focus. of areas current lie beyondour Group toevaluate a has establisheda NewOpportunities AstraZeneca recognisesthisfact and of our business demandsthatwe of our ll possibilitiesthat

Research & Development Overview R&D Process to returnAppendiceslisting Click inslideshowmode

Research & Development Overview Target Identification Target Id. commercially viabletreatments. points forsuccessfuland have thepotentialtobestarting targetsthat identifying biological areas ofunmetmedicalneed and The processbeginsbyfocusing on Hit Id. Lead Id. Lead Opt. nom. Pre- Preclin. Dev. Principle Testing Concept testing Dev. for Launch Target and PLC Launch Id. Maint. Prod.

Research & Development Overview Hit Identification Target Id. out forfurther examination. most interesting"hits"aresingled and arepotentiallydrugable. The that haveanelementofselectivity identification ofactivecompounds to submitforHTS.Theresult isthe possible targetsto determine which A selectionismadefromthe Hit Id. Lead Id. Lead Opt. nom. Pre- Preclin. Dev. Principle Testing Concept testing Dev. for Launch and PLC Launch Hit Id. Maint. Prod.

Research & Development Overview Lead Identification Target Id. effective treatments. themthepotentialtobecome gives influence thetargetinaway that chemicals thathaveproven to lower numberofleadcompounds— hits areconvertedintoasignificantly Through hit-to-leadchemistry, the Hit Id. Lead Id. Lead Opt. nom. Pre- Preclin. Dev. Principle Testing Concept testing Dev. for Launch and PLC Launch Lead Id. Maint. Prod.

Research & Development Overview Lead Optimisation Target Id. Concept Testing inhumans. the potentialfor Principleand determine whethertheleads have delivery tothetarget.Theresults absorption, durationofaction and leadsaretestedfor optimised potential leadsareidentified. The refined andasmallernumber of The leadcompoundsarefurther Hit Id. Lead Id. Lead Opt. nom. Pre- Preclin. Dev. Principle Testing Concept testing Dev. for Launch and PLC Launch Lead Opt. Maint. Prod.

Research & Development Overview Prenomination Target Id. confirmation ofacandidate drug. chemistry. Thefinalresult is the potential needsforscale-up bioavailability andtounderstand the method ofdrugadministration, withregardstosafety, scrutinised The compoundsselectedso farare Hit Id. Lead Id. Lead Opt. nom. Pre- Preclin. Dev. Principle Testing Concept testing Dev. for Launch and PLC Launch nom Pre- Maint. Prod.

Research & Development Overview Preclinical Development Target Id. Ascending Dose). humans (Single andMultiple administering thecompound(s) into to authoritiesprogressinginto regulatory packageforsubmission activities, providethenecessary addition withotherstudies and in pivotaltoxicitystudiesto, in One ormorecompoundsare tested Hit Id. Lead Id. Lead Opt. nom. Pre- Preclin. De.v Principle Testing Concept testing Dev. for Launch Preclin. and PLC Launch Dev. Maint. Prod.

Research & Development Overview Principle Testing Target Id. given apositivePoP. given allow goingintoConceptTesting the confidenceincompound to endpoint. Thisphaseshould grow patients usingasurrogate or clinical patients usingbiomarkers or in or conducted eitherinsubjects Proof ofprinciplestudiesare Hit Id. Lead Id. Lead Opt. nom. Pre- Preclin. Dev. Principle Testing Concept testing Dev. for Launch Principle Testing and PLC Launch Maint. Prod.

Research & Development Overview Concept Testing Target Id. preparing for market success. formulation and route ofsynthesis, Further activitiesincluding final dose forPhaseIIIareconducted. Dose-finding studiesto establishthe move intodevelopmentfor launch. patient groupforthedecision to efficacy andsafety in thetarget This phaseshoulddemonstrate Hit Id. Lead Id. Lead Opt. nom. Pre- Preclin. Dev. Principle Testing Concept testing Dev. for Launch Concept Testing and PLC Launch Maint. Prod.

Research & Development Overview Development for Launch Target Id. product. against therequiredprofile ofthe results fromthephaseIIIstudies tolaunchisbasedonthe decision competitor products.Thefinal and/or compared withplacebo of patients(phaseIII)andis The drugisgiventoalarger number Hit Id. Lead Id. Lead Opt. nom. Pre- Preclin. Dev. Principle Testing Concept testing Dev. for Launch Dev. for Launch and PLC Launch Maint. Prod.

Research & Development Overview Launch andProduct LifeCycle Target Id. augment and optimizethebrand. and formulations tothemarket phase delivering newindications life cyclemanagementiskey inthe the variousmarketplaces. Product plans aredevelopedforlaunches in agencies. Moredetailedlaunch submitted forreviewbyregulatory clinical studiesarecollated and All datafromallpreclinical and Hit Id. Lead Id. Lead Opt. nom. Pre- Preclin. Dev. Principle Testing Concept testing Dev. for Launch and PLC Launch and PLC Launch Maint. Prod.

Research & Development Overview Product Maintenance Target Id. clinical PhaseIVtrials. economic aspectsareexamined in Long-term effectsandhealth further defined,assessedand funded. Strategies for the drug'slife cycle are Hit Id. Lead Id. Lead Opt. nom. Pre- Preclin. Dev. Principle Testing Concept testing Dev. for Launch and PLC Maint. Launch Prod. Maint. Prod.

Research & Development Overview Collaboration Business Development & to returnAppendiceslisting Click inslideshowmode

Research & Development Overview Major Dealsin 2005 nicotinic receptors(NNRs). of othercompounds collaboration alsoallows cognitive disorders cognitive deficitsin TC-1734 totreatAlzheimer’sdisease, phaseIIcompound, agreement ofTargacept Development andco Inc. Targacept for useasanti-cancer agents B/AKT molecule inhibitors ofProtein Kinase Develop andcommerci Therapeutics Astex . Theresearch schizophreniaandother that actonneuronal mmercialisation alise novelsmall forthedevelopment treatment ofcardiovasculardisease. (RCT) enhancingco agreements. ReverseC Licensing andres Avanir Pharmaceuticals atherosclerosis. investigational oral dru product candidate, AGI-106, and of anantiinflammatory cardiovascular Global development a AtheroGenics CytoFab. candidate agreement forProtheric Global developmenta Protherics earch collaboration mpounds forthe nd commercialisation nd commercialisation g forthetreatment of anti-sepsisproduct s holesterol Transport

Research & Development Overview Acquisitions > KuDOS Pharmaceuticals2005 > DNA repair. therapies basedontheinhibition of and developmentofoncology company, focusedonthediscovery privately-owned UKbiotechnology Pharmaceuticals Limited,a Acquisition ofKuDOS clinical development. inphase I inhibitors, iscurrently polymerase (PARP) enzyme KU 59436,anoral poly-ADP-ribose > > Technology (CaT)2006 Cambridge Antibody CAT-8015 CAT-354, CAT-3888 and human therapeutic antibodies. discovery anddevelopmentof its globalleadershippositioninthe seriously ill patients'lives through aiming tobringimprovements A biopharmaceuticalcompany,

Research & Development Overview Prospective on AstraZeneca “AstraZeneca isoneofthe mosthighlyrated ae na20 eotb iioResearch, an bySilico Basedreport * on a2005 in the , which conducts research in the inthe area of thelife sciences. research conducts theUnited Kingdom, which in expertise anditsabilityto shareknowledge”. rated foritsreputation,the qualityofitsstaff,scientific academic research.AstraZeneca isparticularlyhighly of large lifesciencecompanies asapartnerandfunder experience ofworking withthepartner. dealing withthepartner’s The substantive part ofasurv culture, reputation andthe independentresearch organisation based ey consistedof12 questions

Research & Development Overview Prospective on AstraZeneca > > > which conducts research in the area of the life life sciences. inthe area of the research conducts which independent Research, an bySilico Basedreport * ona2005 AZ Rankedin Top 3 The overallexperience: AZ Rankedin Top 3 negotiation, problem solving: the relationship,communication, The organisation’smanagement of AZ Ranked#1 culture: reputation, expertise,staffand The organisation’sscientific research organisation bas Scientific Expertise Knowledge Sharing AstraZeneca AstraZeneca ed in the United Kingdom, 43% 50% 53% 77% 60% 78% 61% 80% 70% 83% 88% 88%

Research & Development Overview Locations to returnAppendiceslisting Click inslideshowmode

Research & Development Overview R&D GlobalLocations at 11 sites in7countries 11sites at Approximately 12,000R&Demployees arelocated Employees: Site: France Employees: Site: Canada Employees: Site: Japan Employees: Site: India Reims Bangalore Montreal Osaka 40 145 355 135 Employees: Wilmington Sites: United States Employees: Charnwood Sites: United Kingdom Sweden Employees: Mölndal, Södertälje Sites: Boston, , Lund, 2,300 4,230 4,760

Research & Development Overview R&D GlobalLocations Site: Canada inflammatory andneuropathic. inflammatory in thetwomostco paincontrol,focusi products for As aDiscoverysite,Montr Montreal Employees: mmon typesofpain— eal concentratesonfindingnew 145 ng onthemechanismsinvolved Focus Area: CNS &Pain

Research & Development Overview R&D GlobalLocations teams atAlderley ParkintheUK. cancerresearch lines. Thescientists hereworkcloselywithour proliferation andanti-invasion/di the treatmentofarangec synthetic chemistsconcentratingsolelyonnewapproachesfor Reims isaDiscovery sitethatma Site: France Reims Employees: 40 ancers. Anti-angiogenesis, anti- ancers. Anti-angiogenesis, spersion arethemainresearch Focus Area: inly consistsofmedicinaland Cancer &Infection

Research & Development Overview R&D GlobalLocations Site: India collaboratively with our infecti collaboratively with our biologists, genetic molecular cause ofadultdeathfrominfecti singlelargest tuberculosis—the finding anewtreatmentfor inBa Discovery laboratories Our Bangalore Employees: engineersandchemistswork on research groupinBoston, USA. on research 135 ous diseaseintheworld.Here ngalore, India,arededicatedto Focus Area: Infection

Research & Development Overview R&D GlobalLocations Site: Japan and lineextensions. engaged inClinical Developmentand Welfare islocated. JapanR&Dis 100 people,someofClinical,Dr head officeofAstraZenecaK. The majorityofJapanR&Demployees resideatthe staff, arelocatedinTokyowhere Osaka Employees: 355 K. Whileapproximately ug SafetyandRegulatoryAffairs a Developmentsite exclusively h iityo elh ao and the MinistryofHealth, Labor Focus Area: registrationofnew products Clinical Development

Research & Development Overview R&D GlobalLocations Site: Sweden osteoarthritis. diseases suchas disease, aswell as inflammatory obstructivepulmonary such asasthma, rhinitisandchronic Valley. AtLund,researchisfo largest science/biotechnologyenvironments—theMedicon Lund issituatedinthesouthof Sweden inoneoftheworld’s Focus Area: Lund Employees: Respiratory &Inflammation 930 cused on respiratory diseases cused onrespiratory

Research & Development Overview R&D GlobalLocations (Prilosec), including with along-standingrecordofsuccess diseases oftheca focusedon areprimarily The researchersatR&DMölndal Focus Area: Site: Sweden Mölndal Nexium, Seloken Cardiovascular &Gastrointestinal Employees: rdiovascular andgastroi and 2,170 Atacand. ntestinal systems, Losec

Research & Development Overview R&D GlobalLocations Site: Sweden nervous system. treating pain controland for ing newproductsfor neuroscience area—develop in Södertälje.Researchhere AstraZeneca’s R&Dorganization is headquartered Focus Area: Södertälje Neuroscience Employees: disorders of the central disorders ofthecentral is focusedmainlyinthe 1,670

Research & Development Overview R&D GlobalLocations and thelatestaddition Site: United Kingdom Park’s contributions include such asheartdisease, inflammationandinfection. Alderley diseaseareas inother work roleinour plays animportant development ofnewmedicines Research atAlderleyPark Focus Area: Alderley Park Cancer &Infection Employees: to our oncology range, to ouroncology focuses onthediscoveryand Casodex to combatcancer.Italso 3,030 , Arimidex Iressa , Faslodex .

Research & Development Overview R&D GlobalLocations Site: United Kingdom analytical R&D,process R&D, clinical andregulatory. and R&D functionsincludingpharmaceutical the major research. Itisafullydedica andinflammation Charnwood isfocusedonrespiratory Focus Area: Charnwood Respiratory &Inflammation Employees: ted R&Dsite,encompassingall 1,200

Research & Development Overview R&D GlobalLocations Site: United States spectrum treatments for infectious disease. spectrum treatments for Science centers and isthe only sitefocusedon broad is alsohometoone and infectious diseaseresearch.R&DBoston on cancer Work atR&D Boston isDi Focus Area: Boston Cancer &Infection Employees: our DiscoveryEnabli our scovery basedandfocused 360 ng Capabilitiesand

Research & Development Overview R&D GlobalLocations employs 5,000people intotal. Wilmington, which, asour 2,000 peopleinResearchand area.Weemploymorethan Neurosciencetherapy of our R&D Wilmington isfocusedon Focus Area: Site: United States Wilmington Neuroscience Employees: US Corporate Headquarters, US CorporateHeadquarters, Developmentfunctionsin psychiatric diseases aspart 2,000

Research & Development Overview R&D GlobalLocations & Environment) processes used tocreatethem.(LedbySafety Health and existingproducts andofthemanufacturing with assessments oftheenvironmentalsafety ofnew supports chemical andrelatedbusinessesworld-wide Devon, inthesouthwestof EnvironmentalLaboratory(BEL) islocatedin Brixham Site: United Kingdom Brixham England.Thelaboratory

Research & Development Overview R&D GlobalLocations end of2009with astaff theICCwillbeoncologyand for China(ICC). Innovation Centre this programwillbetheest R&D inChinaoverthenextthr AstraZeneca recentlycommitted Site: China Shanghai (locationtbd) of morethan70 people. ablishment of the AstraZeneca ablishment oftheAstraZeneca ee years.Theprimefocusof The initialtherapeuticarea it willbeoperational bythe to invest$100millionin

Research & Development Overview Pipeline to returnAppendiceslisting Click inslideshowmode

Research & Development Overview AstraZeneca Pipeline AZD3102 AZD8593 AZD6370 AZD8450 AZD8081 AZD3783 AZD8797 AZD6538 AZD3102 AZD8081 AZD4121 AZD1305 AZD2207 AZD1175 AZD8593 AZD6370 AZD8450 AZD9335 AZD8931 AZD0424 AZD9935 AZD7512 AZD6703 AZD6067 AZD3646 AZD1845 AZD5180 AZD7762 AZD4877 AZD8330 AZD3241 AZD9335 AZD1940 41 Pre-Clinical (TD4756 Theravance) AZD7928 AZD3825 AZD1744 AZD2392 AZD7928 AZD6357 AZD3043 AZD6605 AZD1678 AZD9215 AZD9668 AZD5069 AZD4818 AZD1236 AZD8677 AZD6610 AZD6244 AZD6244 AZD9272 AZD9272 AZD3355 AZD8677 AZD6610 AZD2479 AZD4769 AZD1152 AZD0530 AZD1080 AZD5904 AZD2327 AZD9272 (Array) 20 Phase I (KU59436) AZD5904 AZD5672 AZD1981 AZD3342 AZD8309 AZD8309 AZD1689 AZD2281 (AQ4N) Best in class Best in PhaseII (ARRY-142886) CytoFab™ Zactima™ (Patrin™) AZD6244 AZD6244 AZD8955 AZD9056 AZD9056 AZD5896 AZD3480 AZD9056 AZD0837 AZD9684 AZD7009 ZD4054 13 First in class in First Data current as ofJune 8, 2006 Phase III Zactima™ AGI-1067 AZD2171 AZD2171 AZD6140 NXY-059 Next update topipeline will occur following 2006 Annual Results 5 Toprol X-L™ Seloken™/ Atacand™ Nexium™ Nexium™ Nexium™ Nexium™ Nexium™ Crestor™ Crestor™ Crestor™ Atacand Plus™ Data currentas ofJune 8,2006 eoul SR Seroquel™ Turbuhaler™ Symbicort™ Symbicort™ Symbicort™ Faslodex™ Faslodex™ Faslodex™ Seroquel™ Seroquel™ Seroquel™ Seroquel™ Iressa Iressa™ Iressa™ LCM pMDI pMDI 24 SR SR

Research & Development™ Overview AstraZeneca Pipeline AZD3102 AZD8593 AZD6370 AZD8450 AZD8081 AZD3783 AZD8797 AZD6538 AZD3102 AZD8081 AZD4121 AZD1305 AZD2207 AZD1175 AZD8593 AZD6370 AZD8450 AZD9335 AZD8931 AZD0424 AZD9935 AZD7512 AZD6703 AZD6067 AZD3646 AZD1845 AZD5180 AZD7762 AZD4877 AZD8330 AZD3241 AZD9335 AZD1940 41 Pre-Clinical (TD4756 Theravance) AZD7928 AZD3825 AZD1744 AZD2392 AZD7928 AZD6357 AZD3043 AZD6605 AZD1678 AZD9215 AZD9668 AZD5069 AZD4818 AZD1236 AZD8677 AZD6610 AZD6244 AZD6244 AZD9272 AZD9272 AZD3355 AZD8677 AZD6610 AZD2479 AZD4769 AZD1152 AZD0530 AZD1080 AZD5904 AZD2327 AZD9272 (Array) 20 Phase I (KU59436) AZD5904 AZD5672 AZD1981 AZD3342 AZD8309 AZD8309 AZD1689 AZD2281 (AQ4N) PhaseII CV (ARRY-142886) CytoFab™ Zactima™ (Patrin™) AZD6244 AZD6244 AZD8955 AZD9056 AZD9056 AZD5896 AZD3480 AZD9056 AZD0837 AZD9684 AZD7009 ZD4054 13 Data current as ofJune 8, 2006 Phase III Zactima™ AGI-1067 AZD2171 AZD2171 AZD6140 NXY-059 Next update topipeline will occur following 2006 Annual Results 5 Toprol X-L™ Seloken™/ Atacand™ Nexium™ Nexium™ Nexium™ Nexium™ Nexium™ Crestor™ Crestor™ Crestor™ Atacand Plus™ Data currentas ofJune 8,2006 eoul SR Seroquel™ Turbuhaler™ Symbicort™ Symbicort™ Symbicort™ Faslodex™ Faslodex™ Faslodex™ Seroquel™ Seroquel™ Seroquel™ Seroquel™ Iressa Iressa™ Iressa™ LCM pMDI pMDI 24 SR SR

Research & Development™ Overview AstraZeneca Pipeline AZD3102 AZD8593 AZD6370 AZD8450 AZD8081 AZD3783 AZD8797 AZD6538 AZD3102 AZD8081 AZD4121 AZD1305 AZD2207 AZD1175 AZD8593 AZD6370 AZD8450 AZD9335 AZD8931 AZD0424 AZD9935 AZD7512 AZD6703 AZD6067 AZD3646 AZD1845 AZD5180 AZD7762 AZD4877 AZD8330 AZD3241 AZD9335 AZD1940 41 Pre-Clinical (TD4756 Theravance) AZD7928 AZD3825 AZD1744 AZD2392 AZD7928 AZD6357 AZD3043 AZD6605 AZD1678 AZD9215 AZD9668 AZD5069 AZD4818 AZD1236 AZD8677 AZD6610 AZD6244 AZD6244 AZD9272 AZD9272 AZD3355 AZD8677 AZD6610 AZD2479 AZD4769 AZD1152 AZD0530 AZD1080 AZD5904 AZD2327 AZD9272 (Array) 20 Phase I (KU59436) AZD5904 AZD5672 AZD1981 AZD3342 AZD8309 AZD8309 AZD1689 AZD2281 (AQ4N) PhaseII GI (ARRY-142886) CytoFab™ Zactima™ (Patrin™) AZD6244 AZD6244 AZD8955 AZD9056 AZD9056 AZD5896 AZD3480 AZD9056 AZD0837 AZD9684 AZD7009 ZD4054 13 Data current as ofJune 8, 2006 Phase III Zactima™ AGI-1067 AZD2171 AZD2171 AZD6140 NXY-059 Next update topipeline will occur following 2006 Annual Results 5 Toprol X-L™ Seloken™/ Atacand™ Nexium™ Nexium™ Nexium™ Nexium™ Nexium™ Crestor™ Crestor™ Crestor™ Atacand Plus™ Data currentas ofJune 8,2006 eoul SR Seroquel™ Turbuhaler™ Symbicort™ Symbicort™ Symbicort™ Faslodex™ Faslodex™ Faslodex™ Seroquel™ Seroquel™ Seroquel™ Seroquel™ Iressa Iressa™ Iressa™ LCM pMDI pMDI 24 SR SR

Research & Development™ Overview AstraZeneca Pipeline AZD3102 AZD8593 AZD6370 AZD8450 AZD8081 AZD3783 AZD8797 AZD6538 AZD3102 AZD8081 AZD4121 AZD1305 AZD2207 AZD1175 AZD8593 AZD6370 AZD8450 AZD9335 AZD8931 AZD0424 AZD9935 AZD7512 AZD6703 AZD6067 AZD3646 AZD1845 AZD5180 AZD7762 AZD4877 AZD8330 AZD3241 AZD9335 AZD1940 41 Pre-Clinical (TD4756 Theravance) AZD7928 AZD3825 AZD1744 AZD2392 AZD7928 AZD6357 AZD3043 AZD6605 AZD1678 AZD9215 AZD9668 AZD5069 AZD4818 AZD1236 AZD8677 AZD6610 AZD6244 AZD6244 AZD9272 AZD9272 AZD3355 AZD8677 AZD6610 AZD2479 AZD4769 AZD1152 AZD0530 AZD1080 AZD5904 AZD2327 AZD9272 (Array) 20 Phase I (KU59436) AZD5904 AZD5672 AZD1981 AZD3342 AZD8309 AZD8309 AZD1689 AZD2281 (AQ4N) Neuroscience PhaseII (ARRY-142886) CytoFab™ Zactima™ (Patrin™) AZD6244 AZD6244 AZD8955 AZD9056 AZD9056 AZD5896 AZD3480 AZD9056 AZD0837 AZD9684 AZD7009 ZD4054 13 Data current as ofJune 8, 2006 Phase III Zactima™ AGI-1067 AZD2171 AZD2171 AZD6140 NXY-059 Next update topipeline will occur following 2006 Annual Results 5 Toprol X-L™ Seloken™/ Atacand™ Nexium™ Nexium™ Nexium™ Nexium™ Nexium™ Crestor™ Crestor™ Crestor™ Atacand Plus™ Data currentas ofJune 8,2006 eoul SR Seroquel™ Turbuhaler™ Symbicort™ Symbicort™ Symbicort™ Faslodex™ Faslodex™ Faslodex™ Seroquel™ Seroquel™ Seroquel™ Seroquel™ Iressa Iressa™ Iressa™ LCM pMDI pMDI 24 SR SR

Research & Development™ Overview AstraZeneca Pipeline AZD3102 AZD8593 AZD6370 AZD8450 AZD8081 AZD3783 AZD8797 AZD6538 AZD3102 AZD8081 AZD4121 AZD1305 AZD2207 AZD1175 AZD8593 AZD6370 AZD8450 AZD9335 AZD8931 AZD0424 AZD9935 AZD7512 AZD6703 AZD6067 AZD3646 AZD1845 AZD5180 AZD7762 AZD4877 AZD8330 AZD3241 AZD9335 AZD1940 41 Pre-Clinical (TD4756 Theravance) AZD7928 AZD3825 AZD1744 AZD2392 AZD7928 AZD6357 AZD3043 AZD6605 AZD1678 AZD9215 AZD9668 AZD5069 AZD4818 AZD1236 AZD8677 AZD6610 AZD6244 AZD6244 AZD9272 AZD9272 AZD3355 AZD8677 AZD6610 AZD2479 AZD4769 AZD1152 AZD0530 AZD1080 AZD5904 AZD2327 AZD9272 (Array) 20 Phase I (KU59436) AZD5904 AZD5672 AZD1981 AZD3342 AZD8309 AZD8309 AZD1689 AZD2281 (AQ4N) Onc/Infection PhaseII (ARRY-142886) CytoFab™ Zactima™ (Patrin™) AZD6244 AZD6244 AZD8955 AZD9056 AZD9056 AZD5896 AZD3480 AZD9056 AZD0837 AZD9684 AZD7009 ZD4054 13 Data current as ofJune 8, 2006 Phase III Zactima™ AGI-1067 AZD2171 AZD2171 AZD6140 NXY-059 Next update topipeline will occur following 2006 Annual Results 5 Toprol X-L™ Seloken™/ Atacand™ Nexium™ Nexium™ Nexium™ Nexium™ Nexium™ Crestor™ Crestor™ Crestor™ Atacand Plus™ Data currentas ofJune 8,2006 eoul SR Seroquel™ Turbuhaler™ Symbicort™ Symbicort™ Symbicort™ Faslodex™ Faslodex™ Faslodex™ Seroquel™ Seroquel™ Seroquel™ Seroquel™ Iressa Iressa™ Iressa™ LCM pMDI pMDI 24 SR SR

Research & Development™ Overview AstraZeneca Pipeline AZD3102 AZD8593 AZD6370 AZD8450 AZD8081 AZD3783 AZD8797 AZD6538 AZD3102 AZD8081 AZD4121 AZD1305 AZD2207 AZD1175 AZD8593 AZD6370 AZD8450 AZD9335 AZD8931 AZD0424 AZD9935 AZD7512 AZD6703 AZD6067 AZD3646 AZD1845 AZD5180 AZD7762 AZD4877 AZD8330 AZD3241 AZD9335 AZD1940 41 Pre-Clinical (TD4756 Theravance) AZD7928 AZD3825 AZD1744 AZD2392 AZD7928 AZD6357 AZD3043 AZD6605 AZD1678 AZD9215 AZD9668 AZD5069 AZD4818 AZD1236 AZD8677 AZD6610 AZD6244 AZD6244 AZD9272 AZD9272 AZD3355 AZD8677 AZD6610 AZD2479 AZD4769 AZD1152 AZD0530 AZD1080 AZD5904 AZD2327 AZD9272 (Array) 20 Phase I (KU59436) AZD5904 AZD5672 AZD1981 AZD3342 AZD8309 AZD8309 AZD1689 AZD2281 (AQ4N) Respiratory PhaseII (ARRY-142886) CytoFab™ Zactima™ (Patrin™) AZD6244 AZD6244 AZD8955 AZD9056 AZD9056 AZD5896 AZD3480 AZD9056 AZD0837 AZD9684 AZD7009 ZD4054 13 Data current as ofJune 8, 2006 Phase III Zactima™ AGI-1067 AZD2171 AZD2171 AZD6140 NXY-059 Next update topipeline will occur following 2006 Annual Results 5 Toprol X-L™ Seloken™/ Atacand™ Nexium™ Nexium™ Nexium™ Nexium™ Nexium™ Crestor™ Crestor™ Crestor™ Atacand Plus™ Data currentas ofJune 8,2006 eoul SR Seroquel™ Turbuhaler™ Symbicort™ Symbicort™ Symbicort™ Faslodex™ Faslodex™ Faslodex™ Seroquel™ Seroquel™ Seroquel™ Seroquel™ Iressa Iressa™ Iressa™ LCM pMDI pMDI 24 SR SR

Research & Development™ Overview AstraZeneca Pipeline AZD3102 AZD8593 AZD6370 AZD8450 AZD8081 AZD3783 AZD8797 AZD6538 AZD3102 AZD8081 AZD4121 AZD1305 AZD2207 AZD1175 AZD8593 AZD6370 AZD8450 AZD9335 AZD8931 AZD0424 AZD9935 AZD7512 AZD6703 AZD6067 AZD3646 AZD1845 AZD5180 AZD7762 AZD4877 AZD8330 AZD3241 AZD9335 AZD1940 41 Pre-Clinical (TD4756 Theravance) AZD7928 AZD3825 AZD1744 AZD2392 AZD7928 AZD6357 AZD3043 AZD6605 AZD1678 AZD9215 AZD9668 AZD5069 AZD4818 AZD1236 AZD8677 AZD6610 AZD6244 AZD6244 AZD9272 AZD9272 AZD3355 AZD8677 AZD6610 AZD2479 AZD4769 AZD1152 AZD0530 AZD1080 AZD5904 AZD2327 AZD9272 (Array) 20 Phase I (KU59436) AZD5904 AZD5672 AZD1981 AZD3342 AZD8309 AZD8309 AZD1689 AZD2281 (AQ4N) PhaseII CV (ARRY-142886) CytoFab™ Zactima™ (Patrin™) AZD6244 AZD6244 AZD8955 AZD9056 AZD9056 AZD5896 AZD3480 AZD9056 AZD0837 AZD9684 AZD7009 ZD4054 13 GI Data current as ofJune 8, 2006 Neuro. Phase III Zactima™ AGI-1067 AZD2171 AZD2171 AZD6140 NXY-059 Next update topipeline will occur following 2006 Annual Results 5 Onc/Infec Toprol X-L™ Seloken™/ Atacand™ Nexium™ Nexium™ Nexium™ Nexium™ Nexium™ Crestor™ Crestor™ Crestor™ Atacand Resp. Plus™ Data currentas ofJune 8,2006 eoul SR Seroquel™ Turbuhaler™ Symbicort™ Symbicort™ Symbicort™ Faslodex™ Faslodex™ Faslodex™ Seroquel™ Seroquel™ Seroquel™ Seroquel™ Iressa Iressa™ Iressa™ LCM pMDI pMDI 24 SR SR

Research & Development™ Overview Challenges to returnAppendiceslisting Click inslideshowmode

Research & Development Overview Target Challenges—Cost andTime AstraZeneca invests$14million inR&D. years tobringadrugfrombench tobedside.Eachworkingday Based onindustryaverage,it costs$897milliondollarsandtakes12 Id. Hit Id. 4.5 years Pre-Clinical Lead Phases $335m Id. Lead Opt. nom. Pre- Preclin. Dev. Principle Testing 6 years 1.5 years 1.5 6 years Clinical Phases $467m Concept testing Dev. for Launch Approval $95m Post and PLC Launch Maint. Prod. $

Research & Development Overview Challenges > subjects in trials regulatory requirements, numberof Increasing clinical chronic disease research

Source: CMR International & IMSHealth International CMR Source: Indexed to 1996 160 180 200 220 240 100 120 140 40 60 80 9619 9819 0020 0220 042005* 2004 2003 2002 2001 2000 1999 1998 1997 1996 , andincreasing R&D expenditure costs due tostrict Development times Year > > patent terms Pressure over extensions of place despite increasing R&Dspend ente Entities (NME) Declining numberofNewMolecular NME output NME ring the market Sales

Research & Development Overview Biologicals to returnAppendiceslisting Click inslideshowmode

Research & Development Overview ilgclSrtg CAT Biological Strategy - > > > molecules. molecules. that are notasfeasible forsmall mechanisms and productopportunities AstraZeneca can tackleattractivetargets, antibodies (mAbs) With monoclonal expanded through furtherinvestment. combined with thoseofCATand will be medicines new biological AstraZeneca’s existingcapabilities for development ofbiologicaltherapeutics. is centraltoAstraZeneca’s researchand CAT (CambridgeAntibody Technology) mechanism.“ diseaseand particular a approach for synergy tofindthe best exploiting thecreative capability andthen extra dimension to our its aboutadding an biologicals takingover, "It isnotabout Strategic Planning VP Biopharmaceutical - John Stageman

Research & Development Overview