How Does Health Connect Us All?
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How does health connect us all? AstraZeneca Annual Report and Form 20-F Information 2010 Financial highlights $33.3bn Sales unchanged at $33,269 million ($32,804 million in 2009) $13.6bn Core operating profit unchanged at $13,603 million ($13,621 million in 2009) $6.71 Core EPS for the full year increased by 5% to $6.71 ($6.32 in 2009) $2.1bn Net share repurchases totalled $2,110 million ($nil in 2009) Important information for readers of this Annual Report and Form 20-F Information Statements of competitive position, growth rates and sales In this Annual Report, except as otherwise stated, market information regarding the position Cautionary statement regarding forward-looking statements of our business or products relative to its or their competition is based upon published The purpose of this Annual Report is to provide information to the members of the Company. statistical sales data for the 12 months ended 30 September 2010 obtained from IMS Health, The Company and its Directors, employees, agents and advisors do not accept or assume a leading supplier of statistical data to the pharmaceutical industry. For the US, dispensed responsibility to any other person to whom this Annual Report is shown or into whose hands new or total prescription data and audited sales data are taken, respectively, from IMS Health it may come and any such responsibility or liability is expressly disclaimed. In order, among National Prescription Audit and IMS National Sales Perspectives for the 12 months ended other things, to utilise the ‘safe harbour’ provisions of the US Private Securities Litigation 31 December 2010; such data is not adjusted for Medicaid and similar state rebates. Except as Reform Act of 1995 and the UK Companies Act 2006, we are providing the following otherwise stated, these market share and industry data from IMS Health have been derived by cautionary statement: This Annual Report contains certain forward-looking statements with comparing our sales revenue to competitors’ and total market sales revenues for that period. respect to the operations, performance and financial condition of the Group. Forward-looking Except as otherwise stated, growth rates are given at CER. For the purposes of this Annual statements are statements relating to the future which are based on information available at Report, unless otherwise stated, references to the world pharmaceutical market or similar the time such statements are made, including information relating to risks and uncertainties. phrases are to the 44 countries contained in the IMS Health MIDAS Quantum database, which Although we believe that the forward-looking statements in this Annual Report are based on amounted to approximately 96% (in value) of the countries audited by IMS Health. reasonable assumptions, the matters discussed in the forward-looking statements may be influenced by factors that could cause actual outcomes and results to be materially different AstraZeneca websites from those expressed or implied by these statements. The forward-looking statements reflect Information on or accessible through our websites, including astrazeneca.com, knowledge and information available at the date of the preparation of this Annual Report and astrazenecaclinicaltrials.com and medimmune.com, does not form part of and is not the Company undertakes no obligation to update these forward-looking statements. We incorporated into this Annual Report. identify the forward-looking statements by using the words ‘anticipates’, ‘believes’, ‘expects’, External/third party websites ‘intends’ and similar expressions in such statements. Important factors that could cause actual Information on or accessible through any third party or external website does not form part results to differ materially from those contained in forward-looking statements, certain of which of and is not incorporated into this Annual Report. are beyond our control, include, among other things, those factors identified in the Principal risks and uncertainties section from page 96 of this Annual Report. Nothing in this Annual Definitions Report should be construed as a profit forecast. The Glossary and the Market definitions table from page 217 are intended to provide a useful guide to terms and AstraZeneca’s definition of markets, as well as to acronyms Inclusion of reported performance, Core financial measures and constant exchange and abbreviations used in this Annual Report. They are, however, provided solely for the rate growth rates convenience of the reader and should therefore not be relied upon as providing a definitive For further information in relation to the inclusion of reported performance, Core financial view of the subject matter to which they relate. measures and constant exchange rate (CER) growth rates as used in the Overview from page 2 and throughout the Business Review and Corporate Governance from pages 24 and 94 Use of terms respectively, please refer to the Financial Review section on page 80. In this Annual Report and Form 20-F Information, unless the context otherwise requires, ‘AstraZeneca’, ‘the Group’, ‘we’, ‘us’ and ‘our’ refer to AstraZeneca PLC and its consolidated Throughout this Annual Report, growth rates are expressed at CER unless otherwise stated. entities and any reference to ‘this Annual Report’ is a reference to this Annual Report and Form AstraZeneca’s determination of non-GAAP measures together with our presentation of 20-F Information. them within our financial information may differ from similarly titled non-GAAP measures Statements of dates of other companies. Except as otherwise stated, references to days and/or months in this Annual Report are references to days and/or months in 2010. Figures Figures in parentheses in tables and in the Financial Statements are used to represent negative numbers. Health is something Overview that connects us all In our mission to make a meaningful difference to the world’s health, we work closely with governments and regulators, Business Review those who pay for healthcare, our partners in industry and academia, and doctors. Through our activities we touch a great number of people’s lives and we are acutely conscious of our responsibility to patients and society in general. Corporate Governance Welcome to our 2010 Annual Report astrazeneca.com/ You will find this Annual Report and all the case annualreport2010 studies featured in this document on our website, astrazeneca.com/annualreport2010 Financial Statements Contents 2 Overview 50 Therapy Area Review 2 AstraZeneca at a glance 70 Geographical Review 4 Our year in brief 75 Other Businesses 6 Chairman’s Statement 78 Financial Review 8 Chief Executive Officer’s Review 10 Our Strategy and Performance 94 Corporate Governance 10 Our marketplace 94 Risk 14 Our strategy 106 Board of Directors and Senior Directors’ Report 18 Performance in 2010 Executive Team The following sections comprise 20 Life-cycle of a medicine 109 Corporate Governance Report the Directors’ Report which has been 119 Directors’ Remuneration Report prepared in accordance with the 24 Business Review requirements of the Companies Act 2006: 24 Delivering our strategy 135 Financial Statements Additional Information 26 Research and Development 135 Financial Statements 30 Intellectual Property > Our Strategy and Performance 32 Sales and Marketing 205 Additional Information > Business Review 34 Supply and Manufacturing 206 Development Pipeline > Corporate Governance 36 People 211 Shareholder Information > Development Pipeline 40 Responsible Business 216 Corporate Information > Shareholder Information 217 Glossary > Corporate Information 220 Index AstraZeneca Annual Report and Form 20-F Information 2010 Contents 1 AstraZeneca at a glance Who we are What we do We discover, develop and commercialise prescription medicines for six important areas of healthcare: Cardiovascular, Gastrointestinal, Infection, Neuroscience, Oncology and 6 Respiratory & Inflammation Focus on six areas of healthcare We have a broad range of medicines that includes established treatments for many serious illnesses, such as our antibiotic, Merrem/Meronem and Losec/Prilosec for 61,000 acid-related diseases 61,000 employees worldwide We use our scientific and commercial skills to develop a pipeline of innovative new medicines to meet medical need We had 10 medicines with sales of more than 10 $1 billion each in 2010 10 medicines with sales of over $1 billion in 2010 Cardiovascular Crestor for managing cholesterol levels Seloken/Toprol-XL 100 for hypertension, heart failure and angina Active in over 100 countries Atacand for hypertension and heart failure AstraZeneca is a focused, integrated, Gastrointestinal innovation-driven, global, prescription-based Nexium biopharmaceutical business for acid reflux Our mission is to make a meaningful Infection difference to patient health through Synagis great medicines for RSV, a respiratory infection in infants Neuroscience We are committed to acting responsibly Seroquel IR and to the sustainable development of for schizophrenia and bipolar disorder our business Seroquel XR for schizophrenia, bipolar disorder and major depressive disorder Our mission requires us to do things in the right way – to behave in accordance with Oncology our values and to act with integrity Arimidex for breast cancer We believe that our approach delivers lasting Zoladex value for patients, society and our shareholders for prostate and breast cancer Respiratory & Inflammation Symbicort for asthma and chronic obstructive pulmonary disease 2 AstraZeneca at a glance