FORM 6-K

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

Report of Foreign Issuer

Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934

For July 2004

Commission File Number: 001-11960

AstraZeneca PLC

15 Stanhope Gate, London W1K 1LN, England

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F   X     Form 40-F      

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ______

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ______

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

         Yes           No   X  

If “Yes” is marked, indicate below the file number assigned to the Registrant in connection with Rule 12g3-2(b): 82-_____________


AstraZeneca PLC

INDEX TO EXHIBITS

Item 1.

Press release entitled, “Companies Act 1985 Section 198 – Disclosure of Interest in Voting Shares in Public Companies”, dated 14 July 2004.
   
Item 2.

Press release entitled, “AstraZeneca PLC – Second Quarter and Half Year Results 2004”, dated 22 July 2004.

   
Item 3. Press release entitled, “AstraZeneca PLC – Second Quarter and Half Year Results 2004 – Consolidated Profit & Loss Account”, dated 22 July 2004.
   
Item 4. Press release entitled, “Repurchase of Shares in AstraZeneca PLC”, dated 26 July 2004.
   
Item 5. Press release entitled, “Repurchase of Shares in AstraZeneca PLC”, dated 28 July 2004.
   
Item 6. Press release entitled, “Companies Act 1985 Section 198 – Disclosure of Interest in Voting Shares in Public Companies”, dated 28 July 2004.
   
Item 7. Press release entitled, “Repurchase of Shares in AstraZeneca PLC”, dated 29 July 2004.
   




SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

    AstraZeneca PLC
     
Date: 09 August 2004   By: /s/ A C N Kemp
   
    Name:  A C N Kemp
    Title:     Assistant Secretary



Item 1

COMPANIES ACT 1985 SECTION 198
DISCLOSURE OF INTEREST IN VOTING SHARES IN PUBLIC COMPANIES

ON 13 JULY 2004 WE WERE INFORMED BY THE CAPITAL GROUP COMPANIES, INC., A REGISTERED INVESTMENT MANAGER IN THE U.S., THAT ON 9 JULY 2004 ITS INTEREST IN THE USD0.25 ORDINARY SHARES OF ASTRAZENECA PLC HAD INCREASED TO 265,952,778 SHARES (15.89 PER CENT OF THE CURRENT ISSUED ORDINARY CAPITAL) FROM THE PREVIOUSLY NOTIFIED LEVEL OF 264,149,333 SHARES (15.76 PER CENT). THE REASON FOR THIS ANNOUNCEMENT IS THAT, WITHIN THE SAID HOLDING OF 15.89 PER CENT OF THE ISSUED ORDINARY CAPITAL OF ASTRAZENECA PLC, CAPITAL GUARDIAN TRUST COMPANY, AN AFFILIATE OF THE CAPITAL GROUP COMPANIES, INC., HAS INCREASED ITS INTEREST IN THESE SHARES TO 101,043,504 SHARES (6.04 PER CENT).

 

G H R MUSKER
COMPANY SECRETARY
14 JULY 2004

 




Item 2

 

AstraZeneca PLC

Second Quarter and Half Year Results 2004

"Strong performance from growth products delivers 11 percent increase in sales for the second quarter. Dividend increased by 15 percent."

Financial Highlights 
 Group  2nd Quarter  2nd Quarter  Actual  CER    Half Year  Half Year  Actual  CER 
  2004  2003  %  %    2004  2003  %  % 
  $m  $m        $m  $m     
 Sales  5,288  4,436  +19  +11    10,362  9,171  +13  +5 
 Operating Profit  1,111  889  +25  +15    2,190  2,161  +1  -5 
 Profit before Tax  1,139  921  +24  +15    2,247  2,214  +1  -5 
                   
 Earnings per Share  $ 0.50  $ 0.39  +28  +18    $ 0.97  0.93  +4  -3 

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

Sir Tom McKillop, Chief Executive, said: "The 35 percent increase in sales of growth products, with strong performances from Arimidex™, Crestor™, Iressa™, Nexium™, Seroquel™ and Symbicort™ contributed to a good first half. Although the world pharmaceutical market is becoming increasingly challenging, AstraZeneca is well placed with its newer products to deliver good growth."

London, 22 July 2004

Photos of Sir Tom McKillop, Chief Executive and Jonathan Symonds, Chief Financial Officer 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)   (020) 7304 5033/5034
    Staffan Ternby (Södertälje)   (8) 553 26107
    Rachel Bloom (Wilmington)   (302) 886 7858
Analyst/Investor Enquiries:    Mina Blair-Robinson/ Jonathan Hunt (London)   (020) 7304 5084/5087
    Staffan Ternby (Södertälje)   (8) 553 26107
    Ed Seage/Jörgen Winroth (USA)   (302) 886 4065 /(212) 579 0506

AstraZeneca PLC

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

Second Quarter

Sales in the second quarter were $5,288 million, up 19 percent on a reported basis, including a positive exchange benefit of 8 percent. Sales outside the US were up 7 percent. In the US second quarter sales increased by 17 percent versus 2003. Excluding inventory movements, underlying growth in the US was estimated to be 11 percent. Further analysis of the stock movements in the current and prior periods is found on page 6 of this press release.

Expenditures in R&D and SG&A were $3,042 million in the second quarter, broadly in line with the level of spending in the last several quarters, but up 14 percent in CER terms versus the second quarter 2003 (up 24 percent on a reported basis, including a 10 percent currency impact). Operating profit was up 15 percent at CER (up 25 percent as reported). Earnings per share in the second quarter was $0.50 versus $0.39 in 2003.

In the US market, good underlying growth was seen for Nexium™ (up 14 percent), Toprol-XL™ (up 27 percent), Seroquel™ (up 30 percent) and Arimidex™ (up 46 percent). New products also contributed to the strong quarter. Iressa™ sales were $49 million, with prescriptions up 17 percent versus the first quarter 2004. Crestor™ sales were $113 million. In a highly competitive statin market, Crestor™ share of new prescriptions in the week ending 9 July was 6.8 percent. The unfounded challenges to Crestor™ safety have impacted somewhat upon the excellent progress being made in the market. The Company reaffirms its confidence in Crestor™, with its outstanding efficacy at a comparable risk to the currently marketed statins.

Sales outside the US reflected strong growth for Seroquel™ (up 36 percent), Nexium™ (up 27 percent), Symbicort™ (up 42 percent) and Arimidex™ (up 45 percent). The most recently launched products also performed well. Crestor™ sales outside the US were $94 million; Iressa™ sales were $54 million, up 65 percent.

The successful completion of the European Union Mutual Recognition Procedure for the first indication for Exanta™-prevention of venous thromboembolic events in elective hip and knee replacement surgery-was announced on 5 May. Germany was the first country to launch, on 21 June. Regulatory submissions for the first chronic indications, including the prevention of stroke in patients with atrial fibrillation, remain under review in the EU and the US.

First Half

First half sales were $10,362 million, up 13 percent on a reported basis, including a positive exchange benefit of 8 percent. Sales outside the US increased by 7 percent. In the US, the second quarter sales performance lifted the reported growth rate in the first half to 3 percent over last year. This remains below the estimated underlying growth of 11 percent as a result of a net destocking versus the first half of last year, together with a recalibration of excess inventory as further experience has been gained in the implementation of inventory management agreements.

Operating profit in the first half was up 1 percent on a reported basis, but was down 5 percent in CER terms. Earnings per share was $0.97 for the first half versus $0.93 in 2003. The Board has recommended a 15 percent increase in first interim dividend to $0.295 (16.0 pence; SEK 2.20) to be paid on 20 September 2004.

Future Prospects

The Company continues to anticipate full year earnings per share in the range of $2.00 to $2.15. As previously indicated, strong earnings growth is expected in the second half, fuelled by continuing strong performance from the key growth products and a slowing in the rate of cost growth. Factors which may mitigate include overall US prescription volumes, net realised prices and the reversal of some of the year to date currency benefits.

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 omeprazole in the US, continued growth in currently marketed products (in particular Crestor™, Nexium™, Seroquel™, Symbicort™, Arimidex™, and Iressa™), the successful registration and launch of Exanta™, 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 Annual Report and Form 20-F Information 2003.

2

 

AstraZeneca PLC

Sales

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

Gastrointestinal

    SecondQuarter   CER %    Half Year   CER % 
    2004    2003        2004    2003     
 
Losec™/Prilosec™    531    714    -33    1,071    1,406    -32 
Nexium™    891    631    +36    1,826    1,466    +20 
Total    1,439    1,362    -    2,935    2,907    -6 

Cardiovascular

    SecondQuarter   CER %    Half Year    CER % 
    2004    2003        2004    2003     
Seloken™ /Toprol-XL™    320    380    -19    653    748    -16 
Atacand™    216    152    + 30    425    358    + 8 
Plendil™    148    129    + 10    259    239    + 2 
Zestril™    117    118    - 10    222    226    - 13 
Crestor™    207    9    n/m    336    12    n/m 
Total    1,193    967    + 15    2,248    1,936    + 8 

3





AstraZeneca PLC

Respiratory

SecondQuarter CER % Half Year CER %
2004 2003 2004 2003
Symbicort™ 205 127 + 42 393 249 + 37
Pulmicort™ 244 239 -3 526 490 + 1
Rhinocort™ 100 96 + 1 181 186 - 6
Accolate™ 23 25 - 12 53 56 - 9
Oxis™ 26 29 - 20 51 60 - 27
Total 639 552 + 7 1,287 1,115 + 5

Oncology

SecondQuarter CER % Half Year CER %
2004 2003 2004 2003
Casodex™ 249 228 - 1 478 417 + 4
Zoladex™ 226 213 - 4 439 406 - 3
Arimidex™ 191 143 + 24 357 236 + 39
Iressa™ 103 47 + 106 196 66 + 182
Faslodex™ 23 15 + 46 49 37 + 29
Nolvadex™ 38 39 - 13 69 100 - 39
Total 834 690 + 11 1,596 1,271 + 15

4





AstraZeneca PLC

Neuroscience

SecondQuarter CER % Half Year CER %
2004 2003 2004 2003
Seroquel™ 488 270 + 75 936 714 + 27
Zomig™ 91 54 + 56 186 162 + 6
Total 866 563 + 46 1,678 1,370 + 16

Geographic Sales

SecondQuarter CER % Half Year CER %
2004 2003 2004 2003
USA 2,288 1,962 +17 4,567 4,432 +3
Europe 1,928 1,646 +3 3,803 3,201 +3
Japan 376 293 +13 666 536 +10
RoW 696 535 +18 1,326 1,002 +19
5




AstraZeneca PLC

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

Second Quarter

Reported sales increased by 19 percent and operating profit by 25 percent. At constant exchange rates sales increased by 11 percent and operating profit by 15 percent.

The Company has entered into inventory management agreements with some US customers, including the three largest wholesalers. Transition to the new arrangements began in the second quarter, and at the end of June, inventory levels at wholesalers are estimated to be around $75 million higher than target levels. Our analysis suggests this represents a reduction of $175 million from the end of the first quarter.

Currency differences have continued to benefit our results. Compared with quarter two last year the euro was 6 percent stronger than the US dollar, benefiting sales, although the Swedish krona and sterling were also stronger, increasing costs. Overall, currency benefited EPS by around 3 cents in comparison with quarter two last year, as a result of the beneficial exchange rate profile together with hedging gains in the current quarter compared to losses in the prior year.

Gross margin improved by 1.7 percentage points to 76.9 percent of sales for the quarter. Approximately half of this was due to proportionately lower Merck payments (reduced to 5.2 percent of sales in the quarter) as the sales mix continues to improve. The remainder is due to underlying productivity and currency, including the exchange gains noted above.

In aggregate, R&D and SG&A expenses were $3,042 million, an increase of 14 percent in CER terms (24 percent on a reported basis) versus second quarter last year. R&D expenditure was at broadly the same level as quarter one, while SG&A increased as a result of product launches in the quarter and the start up of new consumer campaigns.

Operating margin for the quarter was 21.0 percent, an increase of 1.0 point over the same period last year. Higher other income benefited margin by 1.3 points, explained principally by the gain on the disposal of the Durascan business, and this was offset by 1.0 point from the increase in SG&A and R&D. Currency benefited margin by around 0.5 points.

First Half

Reported sales increased by 13 percent and operating profit by 1 percent. At constant exchange rates sales increased by 5 percent and operating profit fell by 5 percent. Cumulatively, exchange benefited EPS by around 6 cents. Based on current exchange rates we expect to see minimal benefits going forward. Around half of the year to date benefit to EPS is likely to be reversed as a result of hedging benefits seen in the second half of last year not being repeated.

Gross margin increased by 1.6 points to 77.2 percent. The reduction in Merck payments (to 5.4 percent of sales) contributed about 1 point of this, with the rest coming from operating improvements and currency.

Cumulatively, R&D and SG&A grew by 13 percent (24 percent actual growth) over the same period last year although the expenditure was broadly in line with the levels seen since the second half of last year. Operating margin for the half year was 21.1 percent, 2.5 points below the same point last year. This is a result of the relative growth of R&D and SG&A compared to sales growth in the period.

6





AstraZeneca PLC

Interest and Dividend Income

Net interest and dividend income for the first half was $57 million (2003 $53 million), $28 million in the second quarter (2003 $32 million). Included in net interest is a gain arising from the close out of an interest rate swap which has offset a decline in the core net interest income as US dollar yields have been lower than last year whilst interest payments have increased.

Taxation

The effective tax rate for the half year was 27.0 percent compared with 27.5 percent for the comparative period in 2003. The effective tax rate for the second quarter 2004 was 26.4 percent.

Cash Flow

Cash generated from operating activities before exceptional items in the first half of the year fell slightly to $2,392 million from $2,473 million in 2003. Cash expenditure on exceptional items was $7 million compared with $381million in the first half of 2003, which included the settlement of the US Department of Justice investigation into Zoladex™.

Tax paid and capital expenditures were both slightly lower than last year, as were the cash proceeds from divestments. Despite the higher dividend payment, the net cash inflow before financing was $262 million higher than in the first half of 2003. During quarter two a $750 million bond was issued.

Dividends

The Board has recommended a 15 percent increase in the first interim dividend to $0.295 (16.0 pence, SEK 2.20) to be paid on 20 September 2004 to all shareholders on the register on 13 August 2004.

Share Repurchase Programme

During the second quarter 7.7 million shares were repurchased for cancellation at a total cost of $360 million, bringing the total repurchases for the first half of the year to 20.2 million shares at a total cost of $968 million.

The total number of shares that remain in issue at 30 June 2004 is 1,675 million.

Updated R&D Pipeline Table

An updated R&D pipeline table is available on the Company’s website, www.astrazeneca.com, under information for investors.

Upcoming Milestones and Key Events
     
6 October 2004       Annual Business Review meeting 
21 October 2004       Announcement of third quarter results 
October/November 2004       Communication of 2003 IFRS restatements 
 
Sir Tom McKillop     
Chief Executive     

7





Item 3 
             
Consolidated Profit & Loss Account     
  2004
$m 		  2003
$m 		 

For the six months ended 30 June

   
 
 
 Sales  10,362   9,171  
 Cost of sales  (2,365 ) (2,237 )
 Distribution costs  (86 ) (75 )
 Research and development  (1,923 ) (1,597 )
 Selling, general and administrative expenses  (3,968 ) (3,163 )
 Other operating income  170   62  
 
 
 Operating profit  2,190   2,161  
 Net interest and dividend income  57   53  
 
 
 Profit on ordinary activities before taxation  2,247   2,214  
 Taxation  (606 ) (609 )
 
 
 Profit on ordinary activities after taxation  1,641   1,605  
 Attributable to minorities  (7 ) (7 )
 
 
 Net profit for the period  1,634   1,598  
 
 
 Dividends to shareholders  (494 ) (436 )
 
 
 Retained profit for the period  1,140   1,162  
 
 
             
 Earnings per Ordinary Share  $ 0.97   $ 0.93  
 Diluted earnings per Ordinary Share  $ 0.97   $ 0.93  
 
 
 Weighted average number of Ordinary Shares in issue (millions) 1,684   1,714  
 
 
 Diluted average number of Ordinary Shares in issue (millions) 1,686   1,716  
 
 





Consolidated Profit & Loss Account     
  2004
$m 		  2003
$m 		 

For the quarter ended 30 June

   
 
 
 Sales  5,288   4,436  
 Cost of sales  (1,220 ) (1,102 )
 Distribution costs  (44 ) (40 )
 Research and development  (980 ) (815 )
 Selling, general and administrative expenses  (2,062 ) (1,637 )
 Other operating income  129   47  
 
 
 Operating profit  1,111   889  
 Net interest and dividend income  28   32  
 
 
 Profit on ordinary activities before taxation  1,139   921  
 Taxation  (301 ) (253 )
 
 
 Profit on ordinary activities after taxation  838   668  
 Attributable to minorities  (5 ) (2 )
 
 
 Net profit for the period  833   666  
 
 
 Dividends to shareholders  (494 ) (436 )
 
 
 Retained profit for the period  339   230  
 
 
             
 Earnings per Ordinary Share  $ 0.50   $ 0.39  
 Diluted earnings per Ordinary Share  $ 0.50   $ 0.39  
 
 
 Weighted average number of Ordinary Shares in issue (millions) 1,679   1,712  
 
 
 Diluted average number of Ordinary Shares in issue (millions) 1,681   1,714  
 
 





Consolidated Balance Sheet         
    30 June
2004
$m 		    30 June
2003
$m 		 
         
 Fixed assets         
 Tangible fixed assets    7,526     7,005  
 Goodwill and intangible assets    2,741     2,863  
 Fixed asset investments    145     47  
    10,412     9,915  
 Current assets         
 Stock    3,138     2,765  
 Debtors    6,564     5,479  
 Cash and short-term investments    3,984     3,987  
    13,686     12,231  
 Total assets    24,098     22,146  
 Creditors due within one year         
 Short-term borrowings and current instalments of loans    (102 )   (55 )
 Other creditors    (7,519 )   (7,047 )
    (7,621 )   (7,102 )
 Net current assets    6,065     5,129  
 Total assets less current liabilities    16,477     15,044  
 Creditors due after more than one year         
 Loans    (1,035 )   (323 )
 Other creditors    (56 )   (42 )
 Provisions for liabilities and charges    (2,105 )   (1,922 )
    (3,196 )   (2,287 )
 Net assets    13,281     12,757  
 Capital and reserves         
 Shareholders’ funds – equity interests    13,195     12,696  
 Minority equity interests    86     61  
 Shareholders’ funds & minority interests    13,281     12,757  




Statement of Total Recognised Gains and Losses       
    2004
$m 		    2003
$m 		 

For the six months ended 30 June

       
Net profit for the period  1,634   1,598   
Exchange adjustments on net assets  (227 ) 647   
Total recognised gains and losses relating to the period  1,407   2,245   





Consolidated Cash Flow Statement         
    2004
$m 		    2003
$m 		 
For the six months ended 30 June        
 Cash flow from operating activities         
 Operating profit    2,190     2,161  
 Depreciation    461     417  
 Amortisation    155     141  
 Increase in working capital    (372 )   (346 )
 Other non-cash movements    (42 )   100  
 Net cash inflow from operating activities before exceptional         
 items    2,392     2,473  
 Outflow related to exceptional items    (7 )   (381 )
 Net cash inflow from operating activities    2,385     2,092  
 Returns on investments and servicing of finance    70     33  
 Tax paid    (713 )   (762 )
 Capital expenditure and financial investment         
 Net cash expenditure on fixed assets    (644 )   (673 )
 Cash expenditure on fixed asset investments    (7 )   -  
    (651 )   (673 )
 Acquisitions and disposals    68     80  
 Equity dividends paid to Shareholders    (897 )   (770 )
 Net cash inflow before management of liquid         
 resources and financing    262     -  
 Management of liquid resources         
 Movement in short-term investments and fixed deposits (net)   327     487  
 Financing    (162 )   (604 )
 Increase/(decrease) in cash in the period    427     (117 )
 
 Net cash funds         
 Net cash inflow before management of liquid resources and financing    262     -  
 AstraZeneca PLC Ordinary Shares         
                       Issued for cash    72     26  
                       Repurchased for cash    (968 )   (311 )
 Outflow of net cash funds in the period    (634 )   (285 )





Independent Review Report by KPMG Audit Plc to AstraZeneca PLC

Introduction

We have been engaged by the Company to review the financial information for the six month period ended 30 June 2004 set out on pages 8, 10 to 11 and 13 to 16 and we have read the other information contained in the interim report and considered whether it contains any apparent misstatements or material inconsistencies with the financial information.

This report is made solely to the Company in accordance with the terms of our engagement to assist the Company in meeting the requirements of the Listing Rules of the Financial Services Authority. Our review has been undertaken so that we might state to the Company those matters we are required to state to it in this report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company for our review work, for this report, or for the conclusions we have reached.

Directors’ responsibilities

The interim report, including the financial information contained therein, is the responsibility of, and has been approved by, the Directors. The Directors are responsible for preparing the interim report in accordance with the Listing Rules which require that the accounting policies and presentation applied to the interim figures should be consistent with those applied in preparing the preceding annual accounts except where they are to be changed in the next annual accounts in which case any changes, and the reasons for them, are disclosed.

Review work performed

We conducted our review in accordance with guidance contained in Bulletin 1999/4: Review of Interim Financial Information issued by the Auditing Practices Board for use in the United Kingdom. A review consists principally of making enquiries of group management and applying analytical procedures to the financial information and underlying financial data and, based thereon, assessing whether the accounting policies and presentation have been consistently applied unless otherwise disclosed. A review is substantially less in scope than an audit performed in accordance with Auditing Standards and therefore provides a lower level of assurance than an audit. Accordingly, we do not express an audit opinion on the financial information.

Review conclusion

On the basis of our review we are not aware of any material modifications that should be made to the financial information as presented for the six months ended 30 June 2004.

KPMG Audit Plc
Chartered Accountants
8 Salisbury Square
London
22 July 2004




Notes to the Interim Financial Statements

1    BASIS OF PREPARATION AND ACCOUNTING POLICIES

The unaudited financial statements for the six months ended 30 June 2004 have been prepared in accordance with UK generally accepted accounting principles. The accounting policies applied are those set out in AstraZeneca PLC’s Annual Report and Form 20-F Information 2003, except that, during the period, the Company adopted UITF No. 38 "Accounting for ESOP Trusts". This adoption had no effect on net profit or shareholders’ funds. The information contained in Note 5 below updates the disclosures concerning legal proceedings in the Company’s Annual Report and Form 20-F Information 2003.

The financial statements are unaudited but have been reviewed by the auditors and their report is set out above. Statutory accounts for the year ended 31 December 2003 have been filed with the Registrar of Companies. The auditor’s report on those accounts was unqualified and did not contain any statement under Section 237 of the Companies Act 1985.

2   INTERNATIONAL ACCOUNTING

Under current European proposals, AstraZeneca will be required to adopt International Financial Reporting Standards (IFRS) and International Accounting Standards (IAS) when preparing its consolidated Financial Statements from 2005 onwards. In the Annual Report and Form 20-F Information 2003 it was noted that the major areas of impact on net profit and shareholders’ funds would be share based payments, goodwill amortisation, deferred tax and pensions and there has been no change from this initial assessment. For pensions, AstraZeneca expects to adopt the proposed amendment to IAS19 "Employee benefits" which replicates FRS17 "Retirement benefits" by allowing actuarial surpluses and deficits to be taken to reserves. Overall the impacts on 2003 net profit and shareholders’ funds are not expected to be material. Net profits and shareholders’ funds for 2004 will be affected in the same areas, together with some further adjustments to fair values, assuming the relevant standard IAS39 "Financial Instruments: Recognition and Measurement" is available for adoption.

AstraZeneca’s first results reported under IFRS will be interim results for Q1 2005. Prior to this the Company intends to provide information on both 2003 and 2004 results under IFRS/IAS. The proposed timetable for communication of restated results is:

October/November 2004 

Communication of 2003 IFRS restatements 

January/February 2005 

Communication of 2004 IFRS restatements 
  (including quarterly restatements)

Communications will include primary financial statements together with details of changes in accounting policies and reconciliation to UK GAAP results. In addition a separate conference call will be considered after the third quarter results if investor demand requires it. With the 2004 year end results announcement in January it is anticipated that a full year reconciliation between UK GAAP and IFRS will be presented to enable 2005 earnings guidance to be based on 2004 IFRS earnings.




3   RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS’ FUNDS       
    2004
$m 		    2003
$m 		 
For the six months ended 30 June        
 Shareholders’ funds at beginning of period    13,178     11,172  
 Net profit for the period    1,634     1,598  
 Dividends to Shareholders    (494 )   (436 )
    1,140     1,162  
 Issue of AstraZeneca PLC Ordinary Shares    72     26  
 Repurchase of AstraZeneca PLC Ordinary Shares    (968 )   (311 )
 Foreign currency adjustment    (227 )   647  
 Net addition to Shareholders’ funds    17     1,524  
 Shareholders’ funds at end of period    13,195     12,696  

4   NET CASH FUNDS

The table below provides an analysis of net cash funds and a reconciliation of net cash flow to the movement in net cash funds.

    At 31 Dec
2003
$m 		    Cash
flow
$m 		  Other
non-cash
$m 		  Exchange
movements
$m 		    At 30 June
2004
$m 		 
                   
 Loans due after 1 year    (303 )   (732 )   -    -     (1,035 )
 Current instalments of loans    -     -     -    -     -  
 Total loans    (303 )   (732 )   -    -     (1,035 )
 Short-term investments    3,218     (327 )   -    1     2,892  
 Cash    733     376     -    (17 )   1,092  
 Overdrafts    (152 )   51     -    1     (100 )
 Short-term borrowings    -     (2 )   -    -     (2 )
    3,799     98     -    (15 )   3,882  
 Net cash funds    3,496     (634 )   -    (15 )   2,847  
 Issue of AstraZeneca PLC Ordinary Shares        (72 )            
                     
 Repurchase of AstraZeneca PLC Ordinary Shares        968              
 Net cash inflow before
 management of liquid resources and financing  		      262              
                   





5   LEGAL PROCEEDINGS

AstraZeneca is involved in various legal proceedings considered typical to its business, including litigation relating to employment matters, product liability, commercial disputes, infringement of intellectual property rights and the validity of certain patents. The matters discussed below constitute the more significant developments since publication of the disclosures concerning legal proceedings in the Company’s Annual Report and Form 20-F Information 2003.

Matters previously disclosed in respect of the first quarter of 2004

Plendil™ (felodipine)
In April 2004, Zenith Goldline Pharmaceuticals, Inc. (now known as Ivax Pharmaceuticals, Inc.) filed a motion for summary judgment on the issue of non-infringement in the patent infringement action pending between AstraZeneca Pharmaceuticals LP and Zenith/Ivax in the US District Court for the District of New Jersey. The patent infringement action against Zenith/Ivax, which AstraZeneca filed in July 2001, resulted from a May 2001 letter to AstraZeneca in which Zenith/Ivax declared its intention to market a generic version of Plendil™ extended release tablets (felodipine) prior to the expiration of AstraZeneca’s patent covering the extended release formulation. Zenith/Ivax filed counterclaims in the litigation alleging non-infringement. The parties have completed the briefing on Zenith/Ivax’s motion. No hearing date for the motion has been set.

Toprol-XL™ (metoprolol succinate)
In April 2004, AstraZeneca filed proceedings against Eon Labs Manufacturing Inc. in the US District Court for the District of Delaware following Eon’s notification that it had filed an abbreviated new drug application with the US Food and Drug Administration seeking approval to market generic forms of Toprol-XL™ in the 25mg, 50mg, 100mg and 200mg doses. AstraZeneca maintains that its patents are valid and infringed by Eon’s products.

Additional government investigations into drug marketing practices
Since publication of the Annual Report and Form 20-F Information 2003, AstraZeneca has received two subpoenas from the US Attorney’s Office in Boston, Massachusetts. The first seeks documents relating to promotional programmes involving healthcare professionals at three regional healthcare entities in the Boston area. The second seeks documents relating to the marketing and sale of three products (Zestril™, Naropin™ and Cefotan™) to a leading provider of pharmacy services to long term care facilities. AstraZeneca is co-operating fully with the document requests.

Matters disclosed in respect of the second quarter of 2004

Losec™ / Prilosec™ (omeprazole)
In March 2004, the German Supreme Court heard AstraZeneca’s appeal against the March 2000 decision of the German Federal Patent Court which ruled that AstraZeneca’s formulation patent for omeprazole in Germany was invalid. The German Supreme Court confirmed the decision of the German Federal Patent Court declaring the patent invalid. AstraZeneca has sought leave to appeal this decision to the German Constitutional Court.

Following the German Supreme Court decision, ratiopharm GmbH is seeking damages from AstraZeneca for lost sales due to the interlocutory injunction previously obtained by AstraZeneca against ratiopharm based on the formulation patent.

Drug Importation Anti-trust Litigation

In May 2004, plaintiffs in a purported class action filed complaints in the US District Court in Minnesota and in New Jersey, alleging that AstraZeneca Pharmaceuticals LP and eight other pharmaceutical manufacturer defendants conspired to prevent American consumers from purchasing prescription drugs from Canada, "depriving consumers of the ability to purchase" drugs at competitive prices. The New Jersey case was voluntarily dismissed in July 2004 and only the Minnesota proceedings remain pending. The plaintiffs seek injunctive relief, restitution and other remedies.

StarLink
AstraZeneca Insurance Company Limited (AZIC) has commenced arbitration proceedings in the UK against insurers in respect of amounts paid by Garst Seed Company of the US in settlement of claims arising in the US from Garst’s sale of StarLink, a genetically engineered corn seed. AstraZeneca’s interest in Garst is through AstraZeneca’s 50% ownership of Advanta BV, the sale of which by AstraZeneca to Syngenta AG was recently announced. AZIC’s claim against the insurers will not be affected by the disposal of AstraZeneca’s interest in Advanta BV.

Salick Health Care, Inc.
In April 2004, a subsidiary of Salick Health Care, Inc. (SHC) received a subpoena from the US Department of Justice seeking, among other items, medical records and related documentation for services provided to patients at the Comprehensive Cancer Center at Desert Regional Medical Center in Palm Springs, California. The Comprehensive Cancer Center is managed by the SHC subsidiary which is co-operating fully with the document request.

General
With respect to each of the legal proceedings described above, we are unable to make estimates of the loss or range of losses at this stage. We also do not believe that disclosure of the amount sought by plaintiffs, if that is known, would be meaningful with respect to those legal proceedings.





6   HALF YEAR TERRITORIAL SALES ANALYSIS                 
            % Growth   
 
    1st Half
2004
$m 		  1st Half
2003
$m		       Constant
Currency 		 
 
 
 
 
           US    4,567    4,432    3    3  
           Canada    449    330    36    19  
 
 
 
 
           North America    5,016    4,762    5    4  
 
 
 
 
           France    847    688    23    5  
           UK    281    274    3    (9 )
           Germany    467    390    20    2  
           Italy    543    450    21    3  
           Sweden    153    152    1    (14 )
           Europe others    1,512    1,247    21    6  
 
 
 
 
           Total Europe    3,803    3,201    19    3  
 
 
 
 
           Japan    666    536    24    10  
           Rest of World    877    672    31    19  
 
 
 
 
 Total    10,362    9,171    13    5  
 
 
 
 

7   SECOND QUARTERTERRITORIAL SALES ANALYSIS                 
            % Growth   
 
  2nd Quarter
2004
$m 		2nd Quarter
2003
$m		 Actual Constant
Currency 		 
 
 
 
 
           US    2,288    1,962    17    17  
           Canada    231    174    33    20  
 
 
 
 
           North America    2,519    2,136    18    17  
 
 
 
 
           France    405    359    13    (1 )
           UK    149    130    15    -  
           Germany    241    207    16    2  
           Italy    288    242    19    4  
           Sweden    74    73    1    (11 )
           Europe others    771    635    21    9  
 
 
 
 
           Total Europe    1,928    1,646    17    3  
 
 
 
 
           Japan    376    293    28    13  
           Rest of World    465    361    29    17  
 
 
 
 
 Total    5,288    4,436    19    11  
 
 
 
 





8  HALF YEAR PRODUCT SALES ANALYSIS             
    World US  
 
  1st Half
2004
$m

 		1st Half
2003
$m

 		Actual
Growth
%

 		Constant
Currency
Growth
%
 		1st Half
2004
$m

 Actual
Growth
%
  		 
 
 
 
 
Gastrointestinal:                     
         Losec    1,071    1,406    (24 ) (32 ) 208    (64 )
         Nexium    1,826    1,466    25   20   1,280    16  
         Others    38    35    9   (2 ) 11    -  
 
 
 
 
 
 
Total Gastrointestinal    2,935    2,907    1   (6 ) 1,499    (12 )
 
 
 
 
 
 
Cardiovascular:                     
         Zestril    222    226    (2 ) (13 ) 31    (28 )
         Seloken    653    748    (13 ) (16 ) 453    (21 )
         Atacand    425    358    19   8   125    (9 )
         Plendil    259    239    8   2   106    19  
         Tenormin    178    165    8   (4 ) 15    15  
         Crestor    336    12    n/m   n/m   185    -  
         Others    175    188    (7 ) (18 ) 9    -  
 
 
 
 
 
 
Total Cardiovascular    2,248    1,936    16   8   924    7  
 
 
 
 
 
 
 Respiratory:                     
         Pulmicort    526    490    7   1   280    7  
         Rhinocort    181    186    (3 ) (6 ) 127    (7 )
         Symbicort    393    249    58   37   -    -  
         Accolate    53    56    (5 ) (9 ) 36    (5 )
         Oxis    51    60    (15 ) (27 ) -    -  
         Others    83    74    12   -   -    -  
 
 
 
 
 
 
Total Respiratory    1,287    1,115    15   5   443    2  
 
 
 
 
 
 Oncology:                     
         Zoladex    439    406    8   (3 ) 92    10  
         Casodex    478    417    15   4   107    (19 )
         Nolvadex    69    100    (31 ) (39 ) 3    (92 )
         Arimidex    357    236    51   39   130    29  
         Iressa    196    66    196   182   100    n/m  
         Faslodex    49    37    32   29   43    16  
         Others    8    9    (11 ) (22 ) -    -  
 
 
 
 
 
 
 Total Oncology    1,596    1,271    26   15   475    16  
 
 
 
 
 
 





 Neuroscience:                 
         Seroquel    936    714   31   27   694   27  
         Zomig    186    162   15   6   83   6  
         Diprivan    248    234   6   -   128   4  
         Local anaesthetics    270    223   21   9   60   13  
         Others    38    37   3   (8 ) 10   -  
 
 
 
 
 
 
Total Neuroscience    1,678    1,370   22   16   975   21  
 
 
 
 
 
 
Infection and Other:                 
         Merrem    209    154   36   24   36   44  
         Other Products    136    141   (4 ) (11 ) 59   20  
 
 
 
 
 
 
Total Infection and Other    345    295   17   8   95   28  
 
 
 
 
 
 
         Salick Health Care    148    134   10   10   148   10  
         Astra Tech    125    94   33   16   8   14  
         Marlow Foods    -    49   n/m   n/m   -   n/m  
 
 
 
 
 
 
 Total    10,362    9,171   13   5   4,567   3  
 
 
 
 
 
 
n/m not meaningful             
             
9   SECOND QUARTERPRODUCT SALES ANALYSIS             
    World US  
 
  2nd
Quarter
2004
$m
 		2nd
Quarter
2004
$m
 		Actual
Growth
% 		Constant
Currency
Growth
% 		2nd
Quarter
2004
$m 		Actual
Growth
% 		 
 
 
 Gastrointestinal:                 
         Losec    531    714   (26 ) (33 ) 117   (60 )
         Nexium    891    631   41   36   609   39  
         Others    17    17   -   (6 ) 4   33  
 
 
 
 
 
 
Total Gastrointestinal    1,439    1,362   6   -   730   -  
 
 
 
 
 
 
 Cardiovascular:                 
         Zestril    117    118   (1 ) (10 ) 19   (17 )
         Seloken    320    380   (16 ) (19 ) 216   (26 )
         Atacand    216    152   42   30   57   63  
         Plendil    148    129   15   10   73   46  
         Tenormin    93    81   15   3   4   -  
         Crestor    207    9   n/m   n/m   113   n/m  
         Others    92    98   (6 ) (15 ) 7   40  
 
 
 
 
 
 
Total Cardiovascular    1,193    967   23   15   489   21  
 
 
 
 
 
 
 Respiratory:                 
         Pulmicort    244    239   2   (3 ) 123   (4 )
         Rhinocort    100    96   4   1   71   4  
         Symbicort    205    127   61   42   -   -  
         Accolate    23    25   (8 ) (12 ) 14   (7 )
         Oxis    26    29   (10 ) (20 ) -   -  
         Others    41    36   14   6   -   -  
 
 
 
 
 
 
 Total Respiratory    639    552   16   7   208   (1 )
 
 
 
 
 
 
 Oncology:                 
         Zoladex    226    213   6   (4 ) 45   7  





         Casodex    249    228    9     (1 )   51    (29 )
         Nolvadex    38    39    (3 )   (13 )   2    (60 )
         Arimidex    191    143    34     24     68    -  
         Iressa    103    47    119     106     49    172  
         Faslodex    23    15    53     46     19    27  
         Others    4    5    (20 )   (20 )   -    -  
 
 
 
 
 
 
 Total Oncology    834    690    21     11     234    6  
 
 
 
 
 
 
 Neuroscience:                         
         Seroquel    488    270    81     75     357    93  
         Zomig    91    54    69     56     37    311  
         Diprivan    126    98    29     22     65    55  
         Local anaesthetics    140    122    15     5     30    (9 )
         Others    21    19    11     -     7    75  
 
 
 
 
 
 
Total Neuroscience    866    563    54     46     496    82  
 
 
 
 
 
 
Infection and Other:                         
         Merrem    112    80    40     29     18    50  
         Other Products    64    85    (25 )   (30 )   32    (11 )
 
 
 
 
 
 
Total Infection and Other    176    165    7     (1 )   50    4  
 
 
 
 
 
 
         Salick Health Care    77    69    12     12     77    12  
         Astra Tech    64    50    28     14     4    -  
         Marlow Foods    -    18    n/m     n/m     -    n/m  
 
 
 
 
 
 
 Total    5,288    4,436    19     11     2,288    17  
 
 
 
 
 
 
n/m not meaningful                         





Information for US Investors

RECONCILIATION TO UNITED STATES ACCOUNTING PRINCIPLES

The profit and loss account and balance sheet set out on pages 8 and 10 are prepared in accordance with generally accepted accounting principles in the United Kingdom (UK GAAP), which differ in certain material respects from those generally accepted in the United States (US GAAP). The differences as they apply to AstraZeneca PLC are explained in the Annual Report and Form 20-F Information 2003. The approximate effects on income and shareholders’ equity of the GAAP differences are shown below.


  1st Half
2004
$m
 		  1st Half
2003
$m
 		 
 
 
Net income for the period under UK GAAP from continuing operations  1,634   1,598  
     
Adjustments to conform to US GAAP     
Purchase accounting adjustments (including goodwill and  intangibles):     
       - deemed acquisition of Astra (amortisation and other acquisition adjustments) (508 ) (461 )
       - others  30   28  
Capitalisation less disposals and amortisation of interest  10   3  
Software costs  (4 ) (45 )
Deferred taxation     
       - on fair values of Astra  142   129  
       - others  22   (49 )
Pension expense and other post-retirement benefits expense  (16 ) (14 )
Share based compensation  (1 ) (4 )
Fair value of derivative financial instruments  (65 ) (11 )
Deferred income recognition  -   12  
Unrealised losses on foreign exchange and others  -   (1 )
 
   
 
Net income in accordance with US GAAP  1,244   1,185  
 
   
 
Net income per Ordinary Share under US GAAP – basic and diluted  $ 0.74   $ 0.69  
 
   
 





RECONCILIATION TO UNITED STATES ACCOUNTING PRINCIPLES (CONTINUED)

    30 June
2004
$m 		    30 June
2003
$m 		 
         
 
 
Shareholders’ equity under UK GAAP    13,195     12,696  
 
Adjustments to conform to US GAAP         
Purchase accounting adjustments (including goodwill and intangibles):         
   - deemed acquisition of Astra         
       - goodwill    13,884     13,406  
       - tangible and intangible fixed assets    6,926     7,658  
   - others    175     114  
Capitalisation, less disposals and amortisation of interest    265     241  
Deferred taxation         
   - on fair value of Astra    (2,103 )   (2,300 )
   - others    (175 )   (218 )
Dividend    494     436  
Pension expense and other post-retirement benefits expense    (550 )   (309 )
Software costs capitalised    42     19  
Fair value of derivative financial instruments    40     101  
Deferred income recognition    -     (2 )
Others    53     96  
 
 
Shareholders’ equity in accordance with US GAAP    32,246     31,938  
 
 



 

Shareholder Information 

ANNOUNCEMENTS AND MEETINGS   
   
Annual Business Review 2004  6 October 2004 
   
Announcement of third quarter and nine months 2004 results  21 October 2004 

DIVIDENDS

The record date for the first interim dividend payable on 20 September 2004 (in the UK, Sweden and the US) is 13 August 2004. Ordinary shares will trade ex-dividend on the London and Stockholm Stock Exchanges from 11 August 2004. ADRs will trade ex-dividend on the New York Stock Exchange from the same date.

Future dividends will normally be paid as follows:   
First interim  Announced in July and paid in September   
Second interim  Announced in January and paid in March 

TRADEMARKS

The following brand names used in these interim financial statements are trademarks of the AstraZeneca group of companies:

Accolate Arimidex Astra Tech Atacand Casodex Cefotan Crestor Diprivan Exanta Faslodex Iressa Losec Naropin Nexium Nolvadex Oxis Plendil Prilosec Pulmicort Pulmicort Respules Rhinocort Rhinocort Aqua Seloken Seroquel Symbicort Toprol-XL Zestril Zoladex Zomig

ADDRESSES FOR CORRESPONDENCE
       
Registrar and  Depositary Registered Office  Swedish Securities Register 
Transfer Office  for ADRs   Centre 
The AstraZeneca Registrar  JPMorgan Chase Bank 15 Stanhope Gate  VPC AB 
Lloyds TSB Registrars  PO Box 43013 London  PO Box 7822 
The Causeway  Providence W1K 1LN  SE-103 97 Stockholm 
Worthing  RI 02940-3013 UK  Sweden 
West Sussex  US    
UK     
BN99 6DA     
Tel: +44 (0)121 415 7033  Tel: +1 (781) 575 4328 
 		Tel: +44 (0)20 7304 5000  Tel: +46 (0)8 402 9000 

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

In order to utilise the ‘Safe Harbor’ provisions of the United States Private Securities Litigation Reform Act of 1995, AstraZeneca is providing the following cautionary statement. These interim financial statements contain forward-looking statements with respect to the financial condition, results of operations and businesses of AstraZeneca. By their nature, forward-looking statements and forecasts involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. There are a number of factors that could cause actual results and developments to differ materially from that expressed or implied by these forward-looking statements. These factors include, among other things, the loss or expiration of patents, marketing exclusivity or trade marks; exchange rate fluctuations; the risk that R&D will not yield new products that achieve commercial success; the impact of competition, price controls and price reductions; taxation risks; the risk of substantial product liability claims; the impact of any failure by third parties to supply materials or services; the risk of delay to new product launches; the difficulties of obtaining and maintaining governmental approvals for products; and the risk of environmental liabilities.




Item 4

 

REPURCHASE OF SHARES IN ASTRAZENECA PLC

AstraZeneca PLC announced that on 23 July 2004, it purchased for cancellation 500,000 ordinary shares of AstraZeneca PLC at a price of 2424 pence per share. Upon the cancellation of these shares, the number of shares in issue will be 1,673,193,869.


G H R Musker
Company Secretary
26 July 2004



Item 5

 

REPURCHASE OF SHARES IN ASTRAZENECA PLC

AstraZeneca PLC announced that on 27 July 2004, it purchased for cancellation 450,000 ordinary shares of AstraZeneca PLC at a price of 2418 pence per share. Upon the cancellation of these shares, the number of shares in issue will be 1,672,743,869.


G H R Musker
Company Secretary
28 July 2004



Item 6

 

COMPANIES ACT 1985 SECTION 198
DISCLOSURE OF INTEREST IN VOTING SHARES IN PUBLIC COMPANIES

ON 27 JULY 2004, WE WERE INFORMED BY WELLINGTON MANAGEMENT COMPANY, LLP, A REGISTERED INVESTMENT ADVISOR IN THE US, THAT IT HAS A NOTIFIABLE INTEREST IN THE USD0.25 ORDINARY SHARES OF ASTRAZENECA PLC OF 53,510,141 SHARES WHICH REPRESENTS 3.20 PER CENT OF THE ISSUED ORDINARY CAPITAL OF THE COMPANY.


G H R MUSKER
COMPANY SECRETARY
28 JULY 2004



Item 7

 

REPURCHASE OF SHARES IN ASTRAZENECA PLC

AstraZeneca PLC announced that on 28 July 2004, it purchased for cancellation 450,000 ordinary shares of AstraZeneca PLC at a price of 2420 pence per share. Upon the cancellation of these shares, the number of shares in issue will be 1,672,295,869.


G H R Musker
Company Secretary
29 July 2004