First Quarter Results 2009

First Quarter Results 2009

Sales for the first quarter increased by 7 percent at constant exchange rates
(CER) to $7,701 million.  

-Crestor sales increased by 35 percent at CER.

-Emerging Markets sales increased by 15 percent at CER.

-Benefit to US sales of Toprol-XL from withdrawal of some generic competitors.

Core operating profit increased by 19 percent at CER to $3,362 million.

-Core operating margin improved on sales growth, operational efficiencies,
higher other income from    

disposals and currency benefit.

Core EPS increased by 20 percent at CER to $1.58.

Reported EPS increased by 39 percent at CER to $1.48.

-Reported EPS growth rate affected by higher intangible impairment and
restructuring costs last year.   

Progress on previously announced restructuring programmes on track.       

Strong cash performance; after payment of the second interim dividend of $2,103
million, net debt was reduced by a further $321 million since 31 December.      

Core EPS guidance confirmed; Core EPS target remains $5.15 to $5.45.

On 23 April, the European CHMP recommended approval of Iressa.

-Recommendation is for adults with locally advanced or metastatic non-small cell
lung cancer with 

activating mutations of EGFR-TK, in all lines of therapy.


David Brennan, Chief Executive Officer, said:  “Our business has proved to be
resilient in the first quarter, the result of excellent execution in driving
growth in key product franchises and in all regions, whilst delivering
improvements in operating efficiency. Our full year target for Core EPS remains
unchanged, reflecting our continued caution about the 2009 outlook for the
pharmaceutical sector in the context of global economic conditions.”

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

Sales in the first quarter increased by 7 percent at CER, but were unchanged on
an as reported basis as a result of the negative impact of exchange rate
movements.  Sales in the US were up 7 percent compared with the first quarter
2008 which was affected by higher levels of destocking.  Sales in the US also
benefited from increased Toprol-XL franchise sales as two generic competitors
withdrew their products from the market.  Excluding Toprol-XL, US sales
increased by 3 percent.  Group sales in the Rest of World were up 7 percent. 
Sales in Established Markets were up 4 percent.  Strong sales growth continued
in Emerging Markets; the 15 percent increase in these markets accounted for more
than half of Rest of World sales growth.   

Core operating profit in the first quarter was up 19 percent to $3,362 million,
as a result of sales growth and operational efficiencies together with higher
other income related to proceeds from the agreement returning Abraxane®
co-promotion rights to Abraxis BioScience LLC.  Reported operating profit
increased by 37 percent to $3,163 million, chiefly as a result of the Ethyol
impairment charge and somewhat higher restructuring costs taken in the first
quarter of 2008.  

Core earnings per share in the first quarter were $1.58 compared with $1.28 in
the first quarter 2008, a 20 percent increase at CER.  Reported earnings per
share in the first quarter were $1.48, up 39 percent compared with the first
quarter 2008, in line with the previously identified factors affecting reported
operating profit growth.  

Media Enquiries:
Neil McCrae (London)
(020) 7304 5045
Chris Sampson/Sarah Lindgreen (London)
(020) 7304 5130/5033
Earl Whipple (Wilmington)
(302) 885 8197
Ann-Leena Mikiver (Södertälje)
(8) 553 260 20
Analyst/Investor Enquiries
Karl Hard/James Mead (London)
(020) 7304 5322/5084
Jonathan Hunt (London)
(020) 7304 5087
Ed Seage/Jörgen Winroth (US)
(302) 886 4065/(212) 579 0506