how  
does  
health  
connect  
us all
astrazeneca annual report and 
form 20f information 2010 333bn
sales unchanged at 33269 million 32804 million in 2009
671
core eps for the full year increased by 5 to 671 632 in 2009
2 1bn
net share repurchases totalled 2110 million nil in 2009 
136bn
core operating proﬁt unchanged at 13603 million 13621 million in 2009
important information for readers of this annual report and form 20f information
cautionary statement regarding forwardlooking statements
the purpose of this annual report is to provide information to the members of the company 
the company and its directors employees agents and advisors do not accept or assume 
responsibility to any other person to whom this annual report is shown or into whose hands  
it may come and any such responsibility or liability is expressly disclaimed in order among 
other things to utilise the ‘safe harbour’ provisions of the us private securities litigation 
reform act of 1995 and the uk companies act 2006 we are providing the following 
cautionary statement this annual report contains certain forwardlooking statements with 
respect to the operations performance and ﬁnancial condition of the group forwardlooking 
statements are statements relating to the future which are based on information available at  
the time such statements are made including information relating to risks and uncertainties 
although we believe that the forwardlooking statements in this annual report are based on 
reasonable assumptions the matters discussed in the forwardlooking statements may be 
inﬂuenced by factors that could cause actual outcomes and results to be materially different 
from those expressed or implied by these statements the forwardlooking statements reﬂect 
knowledge and information available at the date of the preparation of this annual report and 
the company undertakes no obligation to update these forwardlooking statements we 
identify the forwardlooking statements by using the words ‘anticipates’ ‘believes’ ‘expects’ 
‘intends’ and similar expressions in such statements important factors that could cause actual 
results to differ materially from those contained in forwardlooking statements certain of which 
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 
report should be construed as a proﬁt forecast
inclusion of reported performance core ﬁnancial measures and constant exchange  
rate growth rates
for further information in relation to the inclusion of reported performance core ﬁnancial 
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 
respectively please refer to the financial review section on page 80
throughout this annual report growth rates are expressed at cer unless otherwise stated
astrazeneca’s determination of nongaap measures together with our presentation of 
them within our ﬁnancial information may differ from similarly titled nongaap measures 
of other companies
statements of competitive position growth rates and sales
in this annual report except as otherwise stated market information regarding the position  
of our business or products relative to its or their competition is based upon published 
statistical sales data for the 12 months ended 30 september 2010 obtained from ims health  
a leading supplier of statistical data to the pharmaceutical industry for the us dispensed  
new or total prescription data and audited sales data are taken respectively from ims health 
national prescription audit and ims national sales perspectives for the 12 months ended  
31 december 2010 such data is not adjusted for medicaid and similar state rebates except as 
otherwise stated these market share and industry data from ims health have been derived by 
comparing our sales revenue to competitors’ and total market sales revenues for that period 
except as otherwise stated growth rates are given at cer for the purposes of this annual 
report unless otherwise stated references to the world pharmaceutical market or similar 
phrases are to the 44 countries contained in the ims health midas quantum database which 
amounted to approximately 96 in value of the countries audited by ims health
astrazeneca websites
information on or accessible through our websites including astrazenecacom 
astrazenecaclinicaltrialscom and medimmunecom does not form part of and is not 
incorporated into this annual report
externalthird party websites
information on or accessible through any third party or external website does not form part 
of and is not incorporated into this annual report
deﬁnitions
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  
and abbreviations used in this annual report they are however provided solely for the 
convenience of the reader and should therefore not be relied upon as providing a deﬁnitive 
view of the subject matter to which they relate
use of terms
in this annual report and form 20f information unless the context otherwise requires 
‘astrazeneca’ ‘the group’ ‘we’ ‘us’ and ‘our’ refer to astrazeneca plc and its consolidated 
entities and any reference to ‘this annual report’ is a reference to this annual report and form 
20f information
statements of dates
except as otherwise stated references to days andor months in this annual report are 
references to days andor months in 2010
figures
figures in parentheses in tables and in the financial statements are used to represent 
negative numbers
financial highlights health is something 
that connects us all
in our mission to make a meaningful 
difference to the world’s health we work 
closely with governments and regulators 
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
astrazenecacom 
annualreport2010
2  overview 
2 astrazeneca at a glance
4 our year in brief
6 chairman’s statement
8  chief executive ofﬁcer’s review
10  our strategy and performance
 10 our marketplace
 14 our strategy
 18 performance in 2010
 20 lifecycle of a medicine
24 business review
24 delivering our strategy
 26 research and development
 30 intellectual property
 32 sales and marketing
 34 supply and manufacturing
 36 people
 40 responsible business
50 therapy area review
70 geographical review
75 other businesses
78 financial review
94 corporate governance
94 risk
106  board of directors and senior 
executive team
 109  corporate governance report
119  directors’ remuneration report
135 financial statements
135 financial statements
205 additional information
206 development pipeline
211 shareholder information
216 corporate information
217 glossary
220 index
contents
directors’ report
the following sections comprise 
the directors’ report which has been 
prepared in accordance with the 
requirements of the companies act 2006
 our strategy and performance  
 business review 
 corporate governance 
 development pipeline 
 shareholder information 
 corporate information
welcome to our 2010 annual report 
you will ﬁnd this annual report and all the case  
studies featured in this document on our website 
astrazenecacomannualreport2010
astrazeneca annual report and form 20f information 2010
overview business review corporate governance additional information
contents 1
financial statements 6
focus on six areas of healthcare
10
10 medicines with sales of over 1 billion in 2010
100
active in over 100 countries
61

000
61000 employees worldwide
astrazeneca is a focused integrated 
innovationdriven global prescriptionbased 
biopharmaceutical business
our mission is to make a meaningful 
difference to patient health through  
great medicines
we are committed to acting responsibly 
and to the sustainable development of 
our business
our mission requires us to do things in the 
right way – to behave in accordance with  
our values and to act with integrity 
we believe that our approach delivers lasting 
value for patients society and our shareholders
we discover develop and commercialise 
prescription medicines for six important areas 
of healthcare cardiovascular gastrointestinal 
infection neuroscience oncology and 
respiratory  inﬂammation
we have a broad range of medicines that 
includes established treatments for many 
serious illnesses such as our antibiotic  
merremmeronem and losecprilosec for 
acidrelated diseases
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 
1 billion each in 2010
cardiovascular
crestor
for managing cholesterol levels 
selokentoprolxl
for hypertension heart failure and angina
atacand 
for hypertension and heart failure
gastrointestinal
nexium
for acid reﬂux
infection
synagis
for rsv a respiratory infection in infants
neuroscience
seroquel ir
for schizophrenia and bipolar disorder
seroquel xr 
for schizophrenia bipolar disorder and major depressive disorder
oncology
arimidex
for breast cancer
zoladex 
for prostate and breast cancer 
respiratory  inﬂammation
symbicort
for asthma and chronic obstructive pulmonary disease
astrazeneca annual report and form 20f information 2010 2 astrazeneca at a glance
what we do
astrazeneca at a glance
who we are our activities touch many people’s lives and 
we are committed to working in a spirit of 
collaboration to achieve our goal of better 
health for patients
for patients and doctors we provide 
medicines for some of the world’s most 
serious illnesses
for the people who pay for healthcare we 
work to make sure that our medicines offer 
value for money
for our employees we provide a culture in 
which they can feel appreciated energised 
and rewarded for their contribution
for our shareholders we aim to deliver value 
through our continued focus on innovation 
and running our business efﬁciently
for the wider community we want to be 
valued for the contribution our medicines 
make to society and trusted for the way in 
which we do business
we recognise the value of collaborative work 
and so continually seek to develop new ways 
of working with others who complement our 
existing skills enhance our internal innovation 
or bring extra value to what we do
we have a global reach but local knowledge 
being active in over 100 countries with a 
growing presence in emerging markets such 
as china mexico brazil and russia
in 2010 we had sales of 13727 million in  
the us 9168 million in western europe 
5176 million in established row and  
5198 million in emerging markets
combining our disease area expertise with 
countryspeciﬁc knowledge helps us to market 
and sell medicines that best meet local needs
of our 61000 employees worldwide 456 
are in europe 305 in the americas and 
239 in asia africa and australasia
around 15700 people work in our rd 
organisation and we have 14 principal rd 
centres in eight countries including sweden 
the us and the uk
we have 9300 employees at 23 supply  
and manufacturing sites in 16 countries
42bn
core investment of 42 billion in our rd organisation in 2010
80
over 80 major externalisation transactions completed over the 
past three years
46
46 of sales and marketing workforce based in emerging 
markets compared with 16 in 2002
23
23 supply and manufacturing sites
astrazeneca annual report and form 20f information 2010
overview
astrazeneca at a glance 3
additional information financial statements corporate governance business review
how we work where we work financial highlights
92
92 projects in clinical development including 9 in phase iii or under 
regulatory review 34 withdrawn during the year
7
revenue in the us fell 7 while revenue in rest of world rose by 7
5bn
annual crestor and seroquel sales exceeded 5 billion each
51bn
revenue in emerging markets grew to over 51 billion a 16 increase
24bn
the ﬁrst phase of the restructuring programme is now complete 
resulting in annual beneﬁts of 24 billion
21bn
net share repurchases totalled 21 billion in 2010
operational overview
summary ﬁnancial and  
operational information for 2010
sales m unchanged
2010 33269
2009 32804
2008 31601
core operating proﬁt m unchanged
2010 13603
2009 13621
2008 10958
reported basic earnings per ordinary share  7
2010 560
2009 519
2008 420
reported gross margin m 1
2010 26880
2009 27029
2008 25003
reported operating proﬁt m 1
2010 11494
2009 11543
2008 9144
core earnings per ordinary share  5
2010 671
2009 632
2008 510
core gross margin m 1
2010 27024
2009 27217
2008 25408
net cash ﬂow from operating activities m
2010 10680
2009 11739
2008 8742
our year in brief
astrazeneca annual report and form 20f information 2010 4 our year in brief   single rd organisation in place including 
new leadership team global organisation 
structure and governance framework
  vimovo approved in the us and the eu 
brilique approved in the eu with complete 
response letter received for brilinta in the 
us kombiglyze™ xr onglyza™metformin 
combination approved in the us decisions 
made in december to discontinue 
development of motavizumab and certriad
  completed a deal with rigel for the phase iii 
development of fostamatinib for rheumatoid 
arthritis and tc5214 our neuroscience 
collaboration with targacept also entered 
phase iii development
  agreement with healthcore which maintains 
the largest commercially insured population 
data environment in the us enables ‘real 
world’ studies of health outcomes
  portfolio of more than 100 generic products 
being licensed across 30 emerging markets 
for marketing under our brand
  crestor substance patent upheld in the 
us courts
  ranked in the top 8 in the sector in the 
dow jones sustainability world and 
european indexes
  reviewed and revised responsible business 
plan to align it with strategic business priorities
  additional ways of reporting sales and 
marketing performance introduced to 
support increased transparency
  improvement in senior leader communications 
with employees but slight decline in employee 
engagement
all growth rates are at cer
product performance summary
arimidex 2009 1921m 2008 1857m
1512m 22
atacand 2009 1436m 2008 1471m
1483m 3
crestor 2009 4502m 2008 3597m
5691m 24
nexium 2009 4959m 2008 5200m
4969m 0
selokentoprolxl 2009 1443m 2008 807m
1210m 17
seroquel ir 2009 4171m 2008 4223m
4 148m 1
seroquel xr 2009 695m 2008 229m
1 154m 67
symbicort 2009 2294m 2008 2004m
2746m 20
synagis 2009 1082m 2008 1230m
1 038m 4
zoladex 2009 1086m 2008 1138m
1 1 15m 0
astrazeneca annual report and form 20f information 2010
overview
our year in brief 5
additional information financial statements corporate governance business review  2010 was a year
in which astrazeneca 
maintained its strong 
ﬁ nancial performance
louis schweitzer
chairman
dividend information
255
dividend per ordinary share 2010
dividend for 2010  pence sek payment date
first interim dividend 070 449 512 13 september 2010
second interim dividend 185 1167 1199 14 march 2011
total 255 1616 1711
distributions to shareholders m 2010 2009 2008
dividends 3361 2977 2739
share repurchases 2604
1
–610
1
 share repurchases in 2010 net of proceeds from the issue of share capital equal to 494 million were 2110 million
6 chairman’s statement chairman’s statement
in the face of sustained pressures on the 
business 2010 was a year in which astrazeneca 
maintained its strong ﬁnancial performance  
we also made good progress in implementing  
our strategy to be a focused integrated 
innovationdriven global prescriptionbased 
biopharmaceutical business
group sales in 2010 were unchanged at 33269 million reported 
operating proﬁt was 11494 million down 1 reported earnings 
per share for the full year were up 7 at 560 2009 519 within 
the unchanged revenue total there was strong sales growth for 
medicines such as crestor symbicort and seroquel xr and 
revenue outside the us increased by 7 including a 16 increase 
in emerging markets on the other hand us revenue was down  
by 7 as expected revenue in the us was affected by generic 
competition for arimidex pulmicort respules and toprolxl as 
well as the absence of the h1n1 inﬂuenza swine ﬂu vaccine 
revenue that beneﬁted 2009 revenues
pharmaceutical sector
our performance in 2010 took place against a background of 
continued world pharmaceutical market growth this growth is 
being driven by increasing and ageing populations as well as 
expanding numbers of patients in emerging markets who can 
beneﬁt from our medicines together with the increasing prevalence 
of chronic diseases and advances in science and technology on 
the other hand the pharmaceutical sector including astrazeneca 
faces a number of challenges in the form of competition particularly 
from generic versions of medicines and declining rd productivity 
in addition most of our sales take place in highly regulated markets 
where cost containment by governments and other payers for 
healthcare is a priority especially in the wake of the economic 
downturn we expect this pressure to continue most notably in the 
us and european markets and the board will keep its plans under 
continuous review to ensure we are able to respond to changes 
astrazeneca fully recognises the importance of its reputation  
we are committed to doing business in an ethical and proper 
manner and take compliance with all laws seriously oversight of  
the pharmaceutical sector by regulators and competition authorities 
has intensiﬁed in recent years the board assisted by the audit 
committee plays an active role in monitoring performance
our strategy
against this outlook the board believes its focused strategy is  
the most valuecreating path for astrazeneca our business model 
is based on using the best science and technology to invent and 
acquire develop produce and distribute innovative medicines that 
make a meaningful difference to patient health around the world 
underpinning this model is the creation protection and subsequent 
sharing of intellectual property it is on this basis that we continue  
to invest in new medicines and work to protect and optimise our 
investments by rigorously defending our patent rights we were 
therefore pleased with the court decision upholding the validity and 
enforceability of the crestor us substance patent
the focus of our efforts to implement our strategy in 2010 was  
on making the transformational changes to the business needed  
to generate sustainable longterm value at the heart of these 
changes was the creation of a single rd organisation which we 
are reshaping and in which we are investing to improve productivity 
and secure targeted levels of return complementing this is a single 
commercial organisation which not only ensures that our medicines 
reach the doctors and patients who need them but also works 
closely with rd to ensure that our pipeline delivers the medicines 
most likely to deliver technical and commercial success that 
includes working with payers to ensure that they value and are 
willing to purchase our medicines 
also central to our strategy is a ﬁrm belief in external collaboration 
we have a desire to access the best science whatever its origins 
and to act as a valued and trusted partner
we have undertaken signiﬁcant restructuring initiatives in furtherance 
of our strategy the ﬁrst phase of the restructuring programme is 
now complete resulting in the realisation of annual beneﬁts of  
24 billion achieved to date at a cumulative cost of around 25 billion
outlook and cash returns to shareholders
we continue to plan on the basis that revenue will be in the range of 
2834 billion a year over the 201014 period as revenue growth 
from key franchises that retain exclusivity and continued growth in 
emerging markets are pressured by the loss of market exclusivity  
on a number of products 
in recognition of the group’s strong balance sheet and sustainable 
signiﬁcant cash ﬂow and the board’s conﬁdence in the strategic 
direction and longterm prospects for the business we announced 
in conjunction with the full year 2009 results the adoption of a 
progressive dividend policy intending to maintain or grow the 
dividend each year after providing for business investment funding 
the progressive dividend policy and meeting our debt service 
obligations the board will also keep under review the opportunity  
to return cash in excess of these requirements to shareholders 
through periodic share repurchases
the board has recommended a second interim dividend of  
185 an 8 increase over the second interim dividend awarded  
in 2009 this brings the dividend for the full year to 255  
1616 pence sek 17 11 an increase of 11 from 2009 in 2010  
cash distributions to shareholders through dividends totalled  
3361 million and net share repurchases totalled 2110 million
board changes
there were a number of board changes during the year john 
buchanan and bo angelin both left the board immediately after the 
2010 agm john had been a director for eight years and had also 
chaired the audit committee his contribution to the work of the 
board and the audit committee over those years was signiﬁcant 
and we beneﬁted greatly from his skills experience and thoughtful 
approach bo was appointed as a director in 2007 and stepped 
down in order to concentrate on his scientiﬁc work he provided 
valuable insight to the board and the science committee during  
his time as a director on behalf of their fellow directors i would  
like to thank both for their excellent service to astrazeneca
bruce burlington joined the board in august he brings with him  
a wealth of pharmaceutical industry experience following a career  
at the fda and subsequently at wyeth now part of pﬁzer inc in 
january 2011 shriti vadera joined the board her experience of 
emerging markets and knowledge of global ﬁnance and public 
policy will be invaluable i would like to welcome both bruce and  
shriti to the board
appreciation
2010 was a successful and challenging year for astrazeneca  
we maintained our strong ﬁnancial performance and took and 
implemented difﬁcult decisions to ensure the future success  
of the group none of this would have been possible without  
the leadership of david brennan and the other members of his 
executive team my thanks and those of the whole board go  
to them and all our employees who did so much in 2010 for the 
longterm success of astrazeneca
louis schweitzer
chairman
astrazeneca annual report and form 20f information 2010 chairman’s statement 7
overview overview additional information financial statements corporate governance business review        it is the manner in 
which we do business 
as much as what we do 
that will determine our 
longterm success
david r brennan
chief executive ofﬁ cer
operational highlights
1 
single rd organisation in place
achieved major market approvals for vimovo 
and briliquebrilinta made submissions for 
dapagliﬂ ozin and zinforo but disappointments 
on other pipeline products
5bn
annual crestor and seroquel sales exceeded 
5 billion each
8
ranked in the top 8 in the sector in the 
dow jones sustainability world and 
european indexes
51bn 
revenue in emerging markets grew to over 
51 billion a 16 increase
8 chief executive ofﬁ cer’s review astrazeneca annual report and form 20f information 2010 chief executive ofﬁcer’s review
2010 emphasised that it is the manner in which 
we do business as much as what we do that 
will determine our longterm success it told us 
that if we are to deliver our strategy and make  
a meaningful difference to the health of patients 
through great medicines then we need to act 
with integrity and remain true to our values we 
need to behave as an integrated organisation 
and work in collaboration with patients doctors 
payers and our many other stakeholders
transforming rd
that journey starts with an rd organisation that delivers world
class performance and where increased externalisation means  
we can access diverse sources of innovation we made signiﬁcant 
progress in 2010 with the creation of a single rd organisation  
and of a leadership team comprising the best internal and external 
leaders this includes the appointment of martin mackay as 
president global rd we have also put in place a new global 
organisation structure and governance framework we are 
consolidating our site footprint and have refocused our resources 
on a smaller number of highpotential activities
the need for change is undiminished our rd record over the  
past few years is disappointing and our results in 2010 were mixed 
on the positive side vimovo our medicine for arthritic pain which 
we developed with pozen inc was approved and launched in the 
eu and the us briliquebrilinta our treatment for acute coronary 
syndromes has also been approved in the eu kombiglyze™ xr  
a ﬁxed dose combination of onglyza™ and metformin a further 
product in our bms diabetes collaboration was approved in  
the us
in 2010 we made major regulatory submissions for vandetanib  
for thyroid cancer zinforo an antibacterial medicine dapagliﬂozin 
for diabetes and axanum a cardiovascular medicine we completed 
a deal with rigel for the phase iii development of fostamatinib for 
rheumatoid arthritis and tc5214 our neuroscience collaboration 
with targacept also entered phase iii development
however both brilinta and axanum received complete response 
letters from the fda during the year we responded to the  
brilinta letter in january 201 1 and remain conﬁdent in our submission 
complete response letters were also received for motavizumab 
for treating serious respiratory syncytial virus rsv disease and 
certriad for the treatment of lipid abnormalities following these 
letters we have withdrawn the biological license application  
relating to motavizumab and recorded an impairment charge of 
445 million in addition we have ended our licence agreement  
with abbott for the development of certriad 
leveraging our commercial assets
hand in hand with transforming rd is the need to leverage our 
commercial assets our key medicines such as crestor symbicort 
and seroquel xr achieved double digit growth in 2010 both 
crestor and seroquel xr were helped by us and eu approvals for 
additional indications nexium is already approved in 120 countries 
and in 2010 we signed an agreement with daiichi sankyo for its 
copromotion and supply in japan after it is approved for use
we are also focusing our efforts on ensuring that we have the right 
capabilities to successfully launch and commercialise the next wave 
of medicines from our pipeline as well as to deliver our expansion 
plans in emerging markets both through organic growth of 
products from our current portfolio and pipeline and also through 
selective additions of astrazeneca branded generics in 2010  
we identiﬁed a portfolio of more than 100 generic products which 
we are currently licensing across 30 emerging markets to help  
us license these dossiers and source the molecules we are  
working with a number of companies in india and have signed an 
agreement with torrent to supply us with a portfolio of branded  
generic medicines
we are creating a much stronger focus on those who pay for  
our medicines to help us ensure that our medicines get to the  
right patients at the right time and at a price they can afford  
while reﬂecting our investment as part of this we have signed  
a collaboration agreement with healthcore which maintains the 
largest commercially insured population data environment in the 
us this will enable us to carry out ‘real world’ studies of health 
outcomes which is of increasing importance to payers around  
the world 
in april 2010 we signed an agreement with the us department of 
justice to settle an investigation relating to the sales and marketing 
of seroquel the requirements of the associated corporate integrity 
agreement include a number of active monitoring and selfreporting 
obligations which we have put in place
efﬁciency across the value chain
to be successful we need to be a lean and agile organisation  
we continue to drive our operations strategy simplifying and 
streamlining our infrastructure and reducing costs making changes 
to reshape the business and make it ﬁt for purpose going forward 
affects a large number of people in many parts of the business that 
has resulted in further reductions in our workforce the executive 
team and i remain committed to ensuring that we manage these 
changes in the right way this means dealing responsibly and 
sympathetically with affected individuals and the communities in 
which they live
people acting with integrity
a good reputation is critical to our business success we need to 
earn and maintain the trust of our customers collaborators and all 
those with whom we do business that means each of us needs to 
act with integrity and in accordance with our values it explains why 
we set such great store by compliance with our code of conduct 
during 2010 we reviewed our existing sales and marketing policies 
and standards and created a single new global policy on external 
interactions which we aim to launch in the ﬁrst quarter of 2011
a good reputation also requires a commitment to acting responsibly 
and to the sustainable development of our business to that end 
our responsible business objectives are closely aligned to our 
business strategy and in 2010 we reviewed and reshaped our 
corporate responsibility priority action plan
finally i am grateful for the dedication and hard work of all  
our employees the pace of change will not let up in 2011 but  
i remain conﬁdent that together we have the talent motivation  
and commitment needed to improve patient health through  
great medicines
david r brennan
chief executive ofﬁcer
astrazeneca annual report and form 20f information 2010
overview
chief executive ofﬁcer’s review 9
overview additional information financial statements corporate governance business review the world pharmaceutical market grew by 
52 in 2010 and more people than ever 
around the world had access to modern 
medicines including more patients in emerging 
markets indeed as the world pharmaceutical 
markets ﬁgure below shows average revenue 
growth in emerging markets was at nearly 
14 more than three times the rate in 
established markets  
while demand for medicines and world pharmaceutical markets 
especially emerging markets continued to grow in 2010 research
based pharmaceutical companies faced a challenging marketplace 
pricing pressures intensiﬁed in most established markets with 
increased competition from generic medicines and greater 
constraints being placed on our business by payers in addition 
industrywide rd productivity continued to decline
in 2010 the top ﬁve pharmaceutical markets in the world remained 
the us japan germany france and china with the us representing 
409 of global prescription pharmaceutical sales 2009 412 
growth drivers
expanding patient populations
the world population has doubled in the last 50 years from three 
billion to over six billion and is expected to reach nine billion by 
2050 in addition the number of people who can access modern 
standards of healthcare continues to increase particularly among 
the elderly who represent a rising proportion of populations in 
developed nations
furthermore fasterdeveloping economies such as china india 
and brazil offer new opportunities for the industry to help an 
expanding number of patients who can beneﬁt from medicines 
emerging markets now represent approximately 85 of the world 
population in addition their pharmaceutical revenues grew 
signiﬁcantly faster than those in established markets in 2010 and  
as the estimated pharmaceutical market growth 20092014 ﬁgure 
opposite shows it is estimated that this trend will continue
data based on world market sales using astrazeneca’s market deﬁnitions as set out in the 
market deﬁnitions table on page 217 source ims health
world sales bn
2010 754
2009 717
2008 677
western europe sales bn
2010 183
2009 179
2008 173
established row sales bn
2010 120
2009 117
2008 111
emerging markets sales bn
2010 143
2009 125
2008 108
growth in 2010
52
growth in 2010
41
growth in 2010
27
growth in 2010
28
growth in 2010
138
market value in 2010
100
market value in 2010
409
market value in 2010
243
market value in 2010
159
market value in 2010
189
us sales bn
2010 308
2009 296
2008 285
world pharmaceutical markets
astrazeneca annual report and form 20f information 2010
our strategy and performance
10 our strategy and performance our marketplace
our marketplace unmet medical need
in most established markets ageing populations and certain 
lifestyle choices such as smoking a poor diet and lack of exercise 
drive an increased incidence of chronic diseases such as cancer 
cardiovascularmetabolic and respiratory diseases which require 
longterm management the prevalence of chronic disease is 
increasing in middleincome countries and is now beginning to  
have an impact in the least developed countries for example  
who research shows that about 90 of the premature deaths  
from noncommunicable diseases are in developing countries 
amounting to more than eight million deaths annually who 
estimates that if nothing is done deaths from these diseases  
will increase by a further 17 before 2015 with africa seeing the 
greatest increase of 27 compared with 6 in europe
advances in science and technology
innovation leading to new drugs is critical to meeting unmet  
medical need existing drugs will continue to be important in 
meeting the growing demand for healthcare particularly as the 
increasing use of generic medication improves access and frees  
up total healthcare funds at the same time advances in disease 
understanding and the application of new technologies will be 
required to ensure the delivery of new medicines such approaches 
include personalised healthcare and predictive science as well as 
other new therapeutic modalities 
the use of large molecules or biologics is becoming an 
increasingly important source of innovation forecasts for 2016 
predict that of the world’s top 100 pharmaceutical products 48  
of sales will come from biologics this compares with only 31 in 
2009 and 15 in 2000 with advances in the technologies for the 
design and testing of novel compounds new opportunities also 
exist for the use of innovative small molecules as new medicines 
most pharmaceutical companies now pursue both small molecules 
and biologics rd
the challenges
pricing pressure
most of our sales continue to be generated in highly regulated 
markets where governments exert various levels of control on 
pricing and reimbursement cost containment in healthcare 
including containment of pharmaceutical spending continues to  
be a focus the global economic downturn has enhanced this  
focus and the pricing and reimbursement environments in many 
markets continue to be highly dynamic
in march 2010 president barack obama signed into law the 
affordable care act it is intended to expand healthcare coverage 
and improve healthcare delivery while reducing the federal budget 
deﬁcit and sets in motion signiﬁcant changes to the us healthcare 
system the world’s largest healthcare reform implementation 
impacts the pharmaceutical industry signiﬁcantly with some 
provisions directly targeting the sector expansion of healthcare 
coverage to an estimated 32 million uninsured people and the 
enhanced focus on ensuring quality healthcare will potentially 
increase patient access to appropriate treatments including 
prescription medicines efforts to expand access to government 
healthcare programmes require additional sources of funding  
the pharmaceutical industry including astrazeneca has shown  
its commitment to these efforts through its agreement among  
other things to help close the coverage gap in the medicare part d 
prescription drug programme and by paying an annual industry fee
astrazeneca annual report and form 20f information 2010 our strategy and performance our marketplace 11
estimated pharmaceutical market growth 20092014
 key
estimated sales – 2014 
estimated growth – 20092014  
compound annual growth rate
 north america sales 3981bn growth 44
 europe eu countries sales 2617bn growth 30
 south east  east asia sales 1320bn growth 177
 japan sales 1155bn growth 40
 latin america sales 944bn growth 134
source ims health 
 exmanufacturer prices at cer
 cis sales 266bn growth 105
 europe non eu countries sales 263bn growth 48
 south asia sales 261bn growth 142
 africa sales 209bn growth 86
 oceania sales 150bn growth 46
 middle east sales 133bn growth 86
overview overview additional information financial statements corporate governance business review while many of the coverage expansion provisions do not take effect 
until 2014 the legislation will have an immediate and direct impact 
on healthcare activities across stakeholders in the us healthcare 
system more generally it will have broad implications for how 
healthcare is delivered covered and reimbursed the pharmaceutical 
industry is working with policymakers and regulators during the 
implementation phases of healthcare reform with a view to ensuring 
that they strike a balance between containing costs while also 
promoting an environment that fosters medical innovation
in germany europe’s largest pharmaceutical market healthcare 
reforms brought into force this year are set to have a signiﬁcant 
longterm impact on the demands being placed on pharmaceutical 
manufacturers to produce information and evidence from clinical 
trials in addition these reforms include a number of shortterm 
measures to lower germany’s healthcare spending including 
provisions that allow for an increase in mandatory rebates and  
a freeze on drug prices similar shortterm measures have been 
implemented as a direct response to economic challenges in 
several other european markets in 2010 including spain portugal 
and greece each of these markets has either imposed price  
cuts or increased mandatory rebates on pharmaceutical  
products these actions present a considerable challenge for  
the researchbased pharmaceutical industry
nevertheless pricing remains one of the principal levers that 
countries can use to stimulate pharmaceutical innovation and 
investment recognition of this has led to a number of positive 
developments such as exemptions in japan the world’s second 
largest pharmaceutical market for certain innovative medicines  
from the country’s biennial price cuts
more information regarding the impact of price controls and 
reductions as well as the impact of healthcare reform in the us can 
be found in the principal risks and uncertainties section from page 
96 the principal aspects of price regulation in our major markets 
are described further in the geographical review from page 70
rd productivity 
over the last 30 years investment in rd in the us has increased 
from 2 billion to 45 billion a year whereas approvals by the fda 
have generally remained at 2530 a year against this background 
the researchbased pharmaceutical industry is pursuing increased 
productivity to ensure a strong pipeline of commercially viable 
medicines for launch the challenge now is greater than ever with 
the pursuit of newer more challenging biological targets in an 
attempt to increase the quality of candidates progressed through 
development novel paradigms are being employed for less 
wellvalidated targets while clinical ‘proof of concept’ is now  
the deﬁning measure of success
organisationally companies are addressing this challenge in a 
variety of ways some companies are employing lean business 
improvement tools andor shared risk operating models to bring 
potential drug candidates to the proof of concept milestone  
others have sought to increase output with limited incremental  
cost or restructured rd functions to promote innovation and 
entrepreneurship some companies have acquired others with 
synergistic development pipelines
regulatory requirements
pharmaceuticals is one of the most regulated industries this 
reﬂects the public interest in safeguarding patients while efforts  
to harmonise these regulations globally are increasing their  
number and impact continue to grow thereby raising the cost  
of doing business given the nature and geographic scope of our 
business we maintain important interactions with many health 
authority regulatory bodies in numerous countries in our largest 
markets these bodies include the fda in the us and the european 
commission and the ema in the eu regulators are also continuing 
to apply a more systematic approach to safety assessment and  
to the management of known and emerging risks both before  
and after a medicine is approved at the same time there is growing 
public demand for access to and transparency of data especially 
clinical data to understand the overall risk and beneﬁt and the 
rationale for a health authority’s decisions while transparency  
and cooperation between health authorities today is becoming 
routine this cooperation does not always lead to identical 
regulatory outcomes 
clinical trials are being conducted across a number of countries  
and regions this requires a comprehensive understanding of  
the differing regional determinants of safety efﬁcacy and clinical 
practice as well as knowledge of local ethics human subject 
protection and good clinical practice requirements in order to 
support the registration of our products in a given regulatory 
jurisdiction programmes providing foreign clinical trial data must 
meet the requirements of local health authorities to ensure 
relevance to their speciﬁc population 
health authorities are also increasingly interested in the efﬁcacy  
of pharmaceuticals after they have been approved which can also 
result in additional regulations this trend reﬂects the increasing 
pressures from both health technology assessors and payers to 
assess not only the safety of our products but also their relative 
effectiveness in the healthcare system 
competition
our main competitors are other researchbased pharmaceutical 
companies that develop and sell innovative patentprotected 
prescription medicines and vaccines as well as smaller 
biotechnology and vaccine companies
generic versions of drugs are very competitive because 
manufacturers of generic drugs price them at a signiﬁcantly lower 
level than the innovator equivalents this is partly because generic 
manufacturers do not invest the same amounts in rd or market 
development as researchbased pharmaceutical companies and 
therefore do not need to recoup that investment such competition 
has traditionally occurred when patents expire but can also  
occur where the validity of patents is being disputed or has been 
successfully challenged before expiry such early challenges by 
generics to patents on innovative products have increased and 
generic companies are increasingly willing to launch generic 
products ‘at risk’ in other words prior to resolution of the relevant 
patent litigation this can result in signiﬁcant market presence for 
the generic equivalent of an innovative product during the period  
in which such patent litigation remains unresolved even though  
the courts may subsequently rule that such product is properly 
protected by a valid patent the unpredictable nature of such patent 
litigation has led innovators to seek to settle such challenges on 
terms acceptable to both innovator and generic manufacturer 
however some competition authorities have sought to challenge 
the scope or even availability of settlement agreements of this type
to date biologics have sustained longer lifecycles than traditional 
pharmaceuticals and have faced less generic competition this is 
because the manufacturing process for biologics is generally more 
complex than it is for small molecule medicines and it is signiﬁcantly 
harder to produce an identical copy of a biologic than it is a small 
molecule medicine however some biologics are or will become 
subject to competition from ‘biosimilars’ as regulatory authorities in 
europe and the us continue implementing abbreviated approvals 
processes for biosimilars
astrazeneca annual report and form 20f information 2010 12 our strategy and performance our marketplace
our strategy and performance astrazeneca annual report and form 20f information 2010
acute coronary syndromes – or acs –  
is a term used to describe sudden chest 
pain and other symptoms caused by an 
insufﬁcient blood supply to the heart they 
are the most common manifestation of 
coronary heart disease chd with over  
25 million occurrences in the developed 
world each year despite the availability of 
current treatment options data suggests 
that up to 15 of patients die within one 
year of their cardiovascular event 
brilintabrilique ticagrelor tablets is an oral antiplatelet 
treatment we have developed for acs the clinical 
development for brilintabrilique included the plato study 
one of the largest clinical trials we have ever undertaken 
involving 18624 patients in 43 countries plato was 
designed to reﬂect current clinical management of acs 
patients and to establish whether brilintabrilique could 
improve cardiovascular outcomes beyond those afforded by 
clopidogrel plavix™iscover™ the overall plato results 
demonstrated the superiority of ticagrelor in reducing heart 
attacks and cardiovascular death in patients with acs the 
data has provided the basis for regulatory ﬁlings worldwide
for more than half a century astrazeneca has been at the 
forefront of rd in cardiovascular diseases brilintabrilique 
was discovered at our laboratories in the uk and represents 
another example of our commitment to developing and 
delivering innovative medicines that make a meaningful 
difference to patient health
      who 
can help 
me survive 
a heart 
attack
because health connects us all
for more information go to the therapy area review 
from page 50 each year at the beginning of our business 
planning cycle we assess the challenges and 
opportunities presented by our marketplace 
test our short and longterm planning 
assumptions and critically assess our 
capabilities as an organisation we do so to 
assure ourselves that whatever our past 
successes the strategic path we are following 
is the right one this section summarises our 
strategic plans for the future as well as our 
performance against our targets in 2010
our vision
the executive team with the endorsement of the board believes 
that the most valuecreating strategy for astrazeneca is to be a 
focused integrated innovationdriven global prescriptionbased 
biopharmaceutical business
  focused in that we will continue to be selective about those 
areas of the industry in which we choose to compete targeting 
those product categories where medical innovation or brand 
equity will continue to enable us to make acceptable levels of 
return on our investments
  integrated in that we believe the best way to capture value 
within this industry is to span the full value chain of discovery 
development and commercialisation while remaining open to 
working with partners and outsourcing to capture operational 
efﬁ ciencies
  innovationdriven in that we believe our technology base will 
continue to deliver innovative products that will beneﬁ t patients 
and for which payers will pay
  global in that we believe we have the ability to meet healthcare 
needs in both established and emerging markets efﬁ ciently and 
effectively
we believe that there are ongoing opportunities to create value 
for those who invest in pharmaceutical innovation and that 
astrazeneca has the skills and capabilities to take advantage of 
these opportunities and turn them into longterm value through 
the research development and marketing of medicines that 
make a difference in healthcare for us this is the core of our 
responsibility to our stakeholders and society successful 
pharmaceutical innovation delivered responsibly brings beneﬁ ts 
for patients creates value for shareholders and contributes to the 
economic and social welfare of the communities we serve
our business model
our business model is based on using the best innovative science 
and technology to invent or acquire produce and distribute 
medicines that make a meaningful difference to people’s health 
around the world we span a broad range of therapeutic modalities 
as well as primary and specialty care in a number of therapy areas 
and are active in over 100 countries around the world our 
commitment to scientiﬁ c innovation is coupled with our belief that 
success will require more external collaboration including more 
collaboration with industry and academic partners
the lifecycle of a medicine overview on page 20 illustrates the 
value chain of discovery development and commercialisation 
it starts with the identiﬁ cation of unmet medical need and market 
opportunity the search for a potential medicine through clinical 
trials regulatory submission a medicine’s launch and management 
of its lifecycle
an inherent element of our business model is the creation 
protection and subsequent sharing of intellectual property assets 
as shown below
creation and acquisition of intellectual 
property through innovative rd 
application for patents to protect the 
intellectual property assets developed 
in a potential medicine
clinical development programmes generating further 
innovations in the use of the potential medicine and 
intellectual property rights in the data required for 
regulatory submissions 
period of intellectual property protection for an 
innovative medicine which allows a return to be made 
on the investment undertaken
expiry of intellectual property rights and 
commoditisation of knowledge which typically sees 
generic versions of a medicine entering a market
astrazeneca annual report and form 20f information 2010 14 our strategy and performance our strategy
our strategy and performance
our strategy a key goal for our planning process is to ensure that we can 
continue to sustain the cycle of successful innovation and as a 
result continue to refresh our portfolio of patented products – and  
so generate value for shareholders
our strategic priorities to 2014
we have identiﬁed the following mediumterm strategic priorities  
as necessary to support the delivery of our strategic ambitions 
they have conﬁrmed our view that the pace of change across the 
business needs to accelerate if we are to be successful in meeting 
our goal of creating enduring value for shareholders by being one  
of the bestperforming biopharmaceutical companies
pipeline
while we are conﬁdent that longterm growth in demand for 
innovative biopharmaceuticals will remain strong it is clear that 
substantial improvement in rd productivity is needed if we are to 
be certain of securing the targeted levels of return on the investment 
required to create shareholder value on a sustainable basis to 
achieve that improvement we intend to follow a more focused 
approach to rd investment with the intention of improving the 
quality of rd output and thereby increasing its returns this  
focus involves a reduction in the number of disease area targets 
consolidation onto a smaller number of sites and a reduction in 
headcount it also involves investment in building industryleading 
capabilities and accessing the best opportunities from outside  
our laboratories
deliver the business
our enhanced programme of external collaboration in our rd 
activities includes working with payers to build an industryleading 
capability in payer partnering in this way when we develop our new 
medicines we will also develop the required health economics 
costbeneﬁt information and ‘valueinuse’ data required by payers 
this will help us gain global reimbursement broad market access 
and optimal pricing for our medicines
in terms of the commercialisation of our products we will continue 
to build on our leading positions in established markets our plans 
for growth will also build on the investments we have made in 
emerging markets in addition to commercialising the current and 
new product offerings being developed internally we will drive 
further growth by selectively supplementing our emerging markets 
portfolio with branded generic products sourced externally and 
marketed under the astrazeneca brand
business shape
we continue to use business improvement programmes such  
as lean to drive efﬁciencies across the group we will also move 
further towards a more ﬂexible cost base which will enable us to 
respond rapidly as our requirements change to do this we will 
continue to make greater use of outsourcing and strategic 
collaborations with other organisations
people and values
we recognise that talented motivated and capable people are 
critical to the successful achievement of our strategic ambitions  
as a result we are focusing on building new critical capabilities 
such as
  ‘payer partnering’ and personalised healthcare 
  further improving leadership and management capability
  acquiring and retaining talent for example in support of our 
growth plans in emerging markets
  increasing the diversity of our talent pool so that it better  
reﬂects our future business shape 
these priorities are underpinned by determined efforts to improve 
employee engagement and to build a high performance culture 
whose hallmarks are creativity courage and collaboration
a good reputation is critical to our business success we therefore 
need to earn and maintain the trust of customers partners and 
stakeholders if we are to deliver our strategy this requires us to  
do things in the right way – to behave in accordance with our  
values and to act with integrity we also need to connect with our 
stakeholders including patients doctors regulators governments 
and payers if we are to understand their needs better and deliver 
on our commitment to improving patient health
our commitment to acting responsibly and to the sustainable 
development of our business underpins our work to implement  
our strategic priorities to that end our responsible business 
objectives are closely aligned to and support delivery of our 
business strategy in the light of dialogue with stakeholders we 
have reviewed and reshaped our corporate responsibility priority 
action plan during the year we have put at the top of the agenda 
those areas most impacted by our business changes and which  
are therefore instrumental enablers of our business strategy  
we will focus on sales and marketing practices access to 
healthcare research ethics including animal welfare human  
rights and supplier management we will be maintaining focus  
on all other aspects of our corporate responsibility such as  
patient safety and the environment 
mediumterm planning assumptions
when we announced our full year results for 2009 we set out a 
series of mediumterm planning assumptions which we updated  
in january 2011 we continue to plan on the basis that revenue for 
the ﬁve years to 2014 will be in the range of 2834 billion a year 
as revenue growth from key franchises that retain exclusivity and 
emerging markets is pressured by the loss of market exclusivity on 
a number of products our latest riskadjusted view is that revenue 
contribution from recently launched products and the pipeline is in 
the range of 35 billion
based on continued productivity improvements including 
successful completion of restructuring initiatives our planning 
assumption remains that core operating margin before investment 
in research and development core prerd operating margin  
will be in the range of 48 to 54 of revenue these levels of 
revenue and margins would generate the requisite operating cash 
ﬂow over the planning period to support the reinvestment needs of 
the business debt service obligations and shareholder distributions 
over the planning period we expect that between 40 and 50  
of our prerd posttax cash ﬂows will be reinvested in internal  
and external rd and capital investments to drive future value  
and growth
astrazeneca annual report and form 20f information 2010 our strategy and performance our strategy 15
overview overview additional information financial statements corporate governance business review business objectives and key performance indicators
within astrazeneca each business function is subject to an annual 
budget and targetsetting process that includes developing ﬁ nancial 
and business forecasts conducting sensitivity and risk analyses 
and setting relevant objectives regular reviews are undertaken in 
order to monitor and assess progress against business and budget 
targets and to assess key risks and mitigating actions
quarterly reports provide the board and the set with shared 
insight into progress against current year objectives and milestones 
for longerterm strategic goals performance is assessed using 
quantitative comparative market operational and ﬁ nancial 
measures and qualitative analysis
in setting our objectives we sought to ensure that they were aligned 
with our mediumterm planning assumptions for the ﬁ ve years to 
2014 for each of our objectives we have developed kpis by which 
what drives the 
growth of our 
business
see our marketplace section 
from page 10
what challenges 
do we face
see our marketplace section 
from page 10
what do we want 
to achieve
see our strategic priorities to 2014 section
on page 15
expanding 
patient 
populations
unmet medical need
1
2
advances in 
science and 
technology
3
pricing pressure
tougher regulatory 
environment
generic 
competition and 
patent expiry
rd productivity
business shape
maintain gross margin in excess of 80
improve sales and marketing 
effectiveness and efﬁ ciency
procurement savings across all functions
focus on working capital management 
people and values
achieve global high performing norm 
rating for employee engagement
achieve a step change in our leadership 
and management capability
ensure a culture of ethics and integrity is 
embedded in all business practices
financial
sustain annual revenues of 2834 billion
sustain core prerd operating margins 
of 4854
reinvest 4050 of prerd posttax 
cash ﬂ ows in rd and capital investments
achieve target return on invested capital
deliver the business
grow market share of key brands that 
retain exclusivity
successfully commercialise recent 
launches and the next wave
sustain double digit sales growth in 
emerging markets 
pipeline
average of two or more commercially 
valuable ﬁ rst approvals in major markets 
per year
40 of our pipeline sourced from outside 
our laboratories 
astrazeneca annual report and form 20f information 2010
our strategy and performance
16 our strategy and performance our strategy we face a diverse range of 
risks and uncertainties that may 
adversely affect any one or 
more parts of our business our 
approach to risk management 
is designed to encourage clear 
decision making as to which 
risks we take as a business 
and how we manage those risks 
in each case informed by an 
understanding of the commercial 
ﬁ nancial compliance legal 
and reputational implications 
of these risks 
our kpis
see performance in 2010 section on page 18
what might stop us from 
achieving our objectives
see risk section from page 94
 gross margin
 sga costs
 rd cost efﬁ ciency
 procurement savings
 employee engagement
 leadership communications
 djsi ranking
 sales and marketing breaches
 revenue
 core prerd operating proﬁ tmargin
 core eps
 reinvestment rate
 cash ﬂ ow
 market share of key brands
 revenue from new product launches
 emerging market sales growth
 product approvals
 regulatory submissions
 phase iii investment decisions
 licensing dealsacquisitions
we have measured our success in delivering our strategy during 
the year we also sought to ensure that we managed the business 
appropriately both to optimise our opportunities and mitigate the 
risks we faced the chart below illustrates this relationship and 
summarises our objectives for 2010 the performance in 
2010 section that follows sets out our performance against 
our kpis during the year
astrazeneca annual report and form 20f information 2010 our strategy and performance our strategy 17
overview overview additional information financial statements corporate governance business review financial
overall strong ﬁ nancial performance exceeded targets for revenue core eps and cash ﬂ ow
   global revenue was unchanged at cer at 333 billion this 
was ahead of target primarily as a result of strong operational 
performance delayed generic entry and less generic erosion 
across the us and europe than assumed in our targets  
   core prerd operating margin was 535 near the top end 
of the mediumterm planning assumption range of 48 to 54
   core eps increased by 5 at cer to 671 this was ahead 
of target as a result of the above revenue performance and 
strong operational execution
  reinvestment rate was just below the mediumterm planning 
assumption range of 40 to 50 due to the better than expected 
prerd posttax cash ﬂ ows astrazeneca continues to expect 
this range to hold over the planning period although anticipates 
variances within any particular year
  net cash inﬂ ow before ﬁ nancing activities of 8340 million reﬂ ects 
the strong business performance
see financial review from page 78 for more information
pipeline
achieved major market approvals for vimovo and brilique made submissions for dapagliﬂ ozin and zinforo but 
disappointments on other pipeline products
   vimovo approved in the us and the eu brilique approved in 
the eu with complete response letter received for brilinta 
in the us kombiglyze™ xr onglyza™metformin combination 
approved in the us additional indications approved for crestor 
in the us and the eu and for seroquel xr in the eu decisions 
made in december to discontinue development of 
motavizumab and certriad 
  dapagliﬂ ozin and vandetanib ndas submitted in the us and the 
eu zinforo and axanum maas submitted in the eu recentin 
trials data did not support regulatory submissions no 
submissions planned for zibotentan 
 completed deal with rigel for the development of fostamatinib 
 phase iii trials started for fostamatinib and tc5214 
see therapy area review from page 50 for more information
deliver the business
global revenue was unchanged at 333 billion
   strong doubledigit sales growth for crestor symbicort and 
seroquel xr annual crestor and seroquel sales exceeded 
5 billion each
   launches under way and planned for brilintabrilique vimovo 
and kombiglyze™ xr 
  achieved target of doubledigit growth in emerging markets 
with revenues over 51 billion a 16 increase over 2009
 see financial review from page 78 and therapy area review 
from page 50 for more information
business shape
achieved or exceeded targets
   core gross margin of 812 slightly ahead of 80 target
   achieved planned improvement in core sga costs with 
2 reduction
   achieved core rd efﬁ ciency savings with spend of 42 billion
  achieved 541 million of procurement savings against a target 
of 500 million
see financial review from page 78 for more information
people and values
improvement in senior leader communications but slight decline in employee engagement 
continued focus on application of code of conduct
   employee engagement score as measured by our global 
employee survey focus reduced from 84 in 2009 to 83 
in 2010 
   improvement of 4 in senior leader communications measure 
in 2010 over 2009 as measured by focus 
  maintained position in the djsi world index the top 10 of 
the largest 2500 companies as sustainability leader as well 
as listing on the djsi stoxx european index 
  11 conﬁ rmed breaches of external sales and marketing 
regulations or codes globally 2009 24
 see people section from page 36 and responsible business 
section from page 40 for more information
astrazeneca annual report and form 20f information 2010 18 our strategy and performance performance in 2010
our strategy and performance
performance in 2010 overview business review corporate governance financial statements additional information
research tells us that many patients 
prescribed drugs do not take their 
medicine as they should – whether the 
right amount at the right time or in the 
right way the position is worst for inhaled 
medicines which include some of our 
asthma medicines research also tells us 
that we can use packaging – which is 
usually our only way of communicating 
directly with patients – to improve 
adherence to a medicine’s instructions
the opportunity for astrazeneca to use packaging design 
to inﬂ uence behaviour is being pursued through a range 
of initiatives these include customising packaging to 
address patient needs better and making the pack part 
of the treatment at the same time we are simplifying 
processes where possible and aim to improve the 
efﬁ ciency with which we use packaging materials by 
20 by 2015
one example of our work is the packaging for our 
children’s asthma inhalers in spain which now features 
an image of a kite – associated with fresh air and physical 
activity – to help children feel more positive about taking 
their medicine
better packaging can help make our medicines more 
effective that helps us and our patients and improves 
treatment outcomes
      what 
will help me 
take my 
medicine
because health connects us all
for more information go to the supply and 
manufacturing section from page 34 the discovery development and 
commercialisation of a medicine is a 
complex process this is a high level 
overview of the process it is illustrative 
only it is not intended to nor does it 
represent the lifecycle of any particular 
medicine or of every medicine discovered 
andor developed by astrazeneca
discovery phase 
1
find potential medicine
identify the unmet medical need and 
market opportunity and undertake 
laboratory research to ﬁnd a potential 
medicine that should be potent 
selective and absorbed into and well 
tolerated by the body
begin the process of seeking patent 
protection for the potential medicine
collaborate with academia and external 
clinicians to access the best external 
science and medical opinion 
2
safety and initial  
efﬁcacy studies
undertake studies in the laboratory and 
in animals to understand if the potential 
medicine should be safe to introduce 
into humans and in what quantities
determine likely efﬁcacy side effect proﬁle 
and maximum dose estimate in humans
regulatory authorities are informed of 
proposed trials which are then conducted 
within the framework of the regulations
0 years 123456789
3
phase i studies
studies typically in small groups 
of healthy human volunteers or in 
certain cases patients to understand 
how the potential medicine is 
absorbed in the body distributed 
around it and excreted also determine 
an appropriate dosage and identify 
side effects
begin to develop manufacturing route  
to ensure the manufacturing process is 
robust and costs are minimised
may involve external clinicians and 
organisations in the design and running 
of these studies
5
phase iii studies
studies in a larger group of patients  
to gather information about 
effectiveness and safety of the 
medicine and evaluate the overall 
riskbeneﬁt proﬁle
create appropriate branding for the new 
medicine in preparation for its launch
at any stage of the development 
process the medicine may have been 
acquired from a collaborating company 
the collaborator may remain involved  
in the future development and 
commercialisation of the medicine
4
phase ii studies
studies in small groups of patients to  
evaluate effectiveness of the medicine
during phase ii studies design a phase iii 
programme to deliver data required for 
regulatory approval and pricing andor 
reimbursement throughout the world
external advisory panels help deﬁne the 
attributes to test in studies to demonstrate 
whether the potential new medicine can be 
differentiated from the existing standard 
treatment of care
development phase 
astrazeneca annual report and form 20f information 2010 20 our strategy and performance lifecycle of a medicine
our strategy and performance
lifecycle of a medicine 10 11 12 13 14 15 16 17 18 20
6
regulatory submission
seek approval from regulatory authorities to 
manufacture market and sell the medicine
submit package of clinical data which demonstrates 
the safety proﬁle and efﬁcacy of the medicine to the 
regulatory authorities
regulatory authorities decide whether to grant 
marketing authorisation based on the medicine’s 
safety proﬁle effectiveness and quality 
large numbers of national regional and local payers 
grant approval for the pricing andor reimbursement  
of the medicine
7
launch new medicine
raise awareness of patient beneﬁt and 
appropriate use
market and sell medicine continuously monitor  
record and analyse reported side effects review 
need to update the side effect warnings to ensure 
that patients’ wellbeing is maintained
clinicians begin to prescribe medicine and 
patients begin to beneﬁt
9
lifecycle management
broaden understanding of the full potential  
of the medicine
work with external advisory groups and regulatory 
authorities to consider potential additional 
diseases which might be treated by the medicine 
or better ways of administering the medicine
submit data packages with requests for line 
extensions 
regulatory authorities review the data to assess 
the riskbeneﬁt of using the medicine in the new 
disease or population and issue a decision
8
postlaunch clinical  
safety studies
studies to further understand the  
safety proﬁle of the medicine in larger 
populations
conduct any required or indicated 
postlaunch followup clinical trials
sponsors and regulatory authorities 
monitor the safety of medicines post 
approval and update the prescribing 
information as necessary
10
patent expiry
typically when patents protecting the 
medicine expire generic versions of  
the medicine may enter the market
post launch delivering to patients 
astrazeneca annual report and form 20f information 2010 our strategy and performance lifecycle of a medicine 21 astrazeneca annual report and form 20f information 2010
overview overview additional information financial statements corporate governance business review headings overview business review corporate governance financial statements additional information
approximately 300 million people worldwide suffer from 
asthma it is one of the most common chronic diseases  
and its prevalence is increasing every year especially  
among children it is estimated that by 2025 there will  
be an additional 100 million sufferers
although asthma cannot be cured it can be treated 
effectively research shows that with the right treatment 
nearly all asthma patients can achieve and maintain good 
asthma control enabling them to live full and active lives 
our symbicort medicine provides important improvement 
in the health of many patients with asthma symbicort 
pmdi pressurised metereddose inhaler is approved in  
the us for the treatment of asthma in patients 12 years of 
age and older
outside the us our symbicort turbuhaler maintenance 
and reliever therapy smart combines both regular 
maintenance and asneeded reliever therapies it is the 
only asthma treatment regime to do so and allows 
patients to control daily symptoms and reduce the severity 
and number of asthma attacks using a single inhaler it 
gives asthma patients what they want in daily symptom 
control and also gives them what they need in the longer 
term – improved asthma management
because health connects us all
for more information go to the therapy area review 
from page 50
      how can  
i help manage 
my asthma how will we deliver 
our strategy
we need the 
following 
resources skills 
and capabilities in 
place to achieve our 
longterm goals
astrazeneca annual report and form 20f information 2010 24 delivering our strategy 1
an rd function with  
worldclass productivity 
focused on delivering a range of innovative differentiated and commercially attractive 
medicines through collaboration and underpinned by patent and intellectual 
property rights see page 26
2
a sales and marketing activity 
undertaken in the right way 
and focused on our customers and their patients’ needs see page 32
3
a reliable supply and 
manufacturing operation
that ensures our customers and patients receive their medicines when they want 
and need them see page 34
4
a diverse and talented 
workforce
with the right skills in the right place at the right time see page 36
5
a commitment to responsible 
development of our business 
which delivers value for our shareholders and for our other stakeholders  
see page 40
business review 
this section includes information that fulﬁlls the requirements of a business review under  
the companies act 2006 the our strategy and performance corporate governance 
development pipeline shareholder information and corporate information sections from 
pages 10 94 206 211 and 216 respectively are incorporated into this section
details of the more signiﬁcant risks to astrazeneca are set out in the principal risks and 
uncertainties section from page 96
many of our products are subject to litigation detailed information about material legal 
proceedings can be found in note 25 to the financial statements from page 178
references to prevalence of disease have been derived from a variety of sources and are  
not intended to be indicative of the current market or any potential market for astrazeneca’s 
pharmaceutical products since among other things there may be no correlation between  
the prevalence of a disease and the number of individuals who are treated for such a disease
the glossary and the market deﬁnitions table from page 217 are intended to provide a  
useful guide to terms and astrazeneca’s deﬁnitions of markets as well as to acronyms  
and abbreviations used in this section
in this annual report and form 20f information unless the context otherwise requires 
‘astrazeneca’ ‘the group’ ‘we’ ‘us’ and ‘our’ refer to astrazeneca plc and its consolidated 
entities and any reference to ‘this annual report’ is a reference to this annual report and  
form 20f information
except as otherwise stated references to days andor months in this annual report are 
references to days andor months in 2010
figures in parentheses in tables and in the financial statements are used to represent 
negative numbers
delivering our strategy 25 astrazeneca annual report and form 20f information 2010
business review additional information financial statements corporate governance overview we are committed to using the best science 
and technology to invent and acquire produce 
and distribute innovative medicines that make a 
meaningful difference to people’s health around 
the world this commitment is matched by our 
recognition that a substantial improvement in 
rd productivity is needed if we are to be 
certain of securing targeted levels of return  
on our investment
we are transforming our single rd organisation to meet this 
challenge by appointing new worldclass leaders and conﬁrming 
the best internal people in leadership positions we are creating  
an environment that allows our scientists to drive innovation and 
collaborate successfully with internal and external partners to bring 
forward valued new medicines our strategy for change comprises 
the following elements
  prioritising our resources in those areas where we believe we  
can be most successful through a focused disease area strategy
  ensuring shareholders’ funds are invested wisely using an 
effective and ﬂexible rd operating model
  building the capabilities we need to ensure delivery of our strategy
  ensuring we access the best new opportunities regardless of 
their origin
disease area focus
we are prioritising our resources and focusing our internal discovery 
activities on those diseases within our existing therapy areas  
where we believe there is the greatest potential this process of 
prioritisation is designed to ensure that as we look ahead the 
projects we have in our pipeline constitute the programmes which 
we believe are most likely to deliver technical and commercial 
success the disease areas table opposite indicates where we  
will be focusing our activities within our therapy areas it also 
indicates those areas that we consider to be less attractive and 
where we will be decreasing our discovery investment or exiting  
an area altogether
while we will be exiting inhouse discovery research in some 
disease areas we will continue to look at new therapeutic areas via 
externalisation ensuring that we optimise our own assets and look 
at inlicensing or acquiring opportunities where we believe there is 
further value 
6
focus on six areas of healthcare
42bn
core investment of 42 billion in our rd organisation
92
92 projects in clinical development including 9 in phase iii  
or under regulatory review 34 withdrawn during the year
“…we are creating an environment that  
allows our scientists to drive innovation and 
collaborate successfully with internal and 
external partners to bring forward valued  
new medicines”
martin mackay 
president global rd
astrazeneca annual report and form 20f information 2010 26 delivering our strategy research and development
delivering our strategy
research and development 
focused on delivering 
innovative and valued 
medicines cardiovascular
gastrointestinal
oncology
respiratory  
inﬂ ammation
neuroscience
infection
high attractiveness
  diabetes ‘glucose 
plus’ metabolism
 breast cancer
 lung cancer
 systemic lupus 
erythematosus sle 
biologics
  alzheimer’s disease 
modiﬁ cation
 neuropathic pain
  resistant bacterial 
infections
medium attractiveness
 obesity
  atherosclerotic cardiovascular disease
  haemophiliableeding disorders
  diabetes complications including nephropathy
  atrial ﬁ brillation conversionmaintenance
 hepatocellular cancer
 gastric cancer
 prostate cancer
 haematological cancers
 colorectal cancer
 rheumatoid arthritis biologics
 severe asthma
 chronic obstructive pulmonary disease copd
 nociceptive pain
 cognition
  respiratory syncytial virus rsv treatmentvaccine
 inﬂ uenza
low attractiveness
 reﬂ ux
 thrombosis
 ovarian cancer
 bladder cancer
  systemic scleroderma
  schizophreniabipolar
 depression
 anxiety
 other vaccines
 hepatitis c
disease areas
we have also reviewed the projects we are working on within this 
narrower portfolio our aim has been to ensure we put our effort 
behind those projects we believe are most likely to be successful 
our measure is not the number of candidate medicines it is the 
number of derisked value adding proof of concept medicines 
that is where there is evidence that gives us a high degree of 
conﬁ dence of success our focus is on identifying and resourcing 
key projects that have the potential to deliver a differentiated 
commercially attractive medicine to patients in the ﬁ rst wave for 
any given mechanism
our pipeline includes 92
1
 projects in the clinical phase of development 
as shown in the development projects chart overleaf we now have 
a total of 34 projects in phase i 32 projects in phase ii 9 projects 
in late stage development either in phase iii or under regulatory 
review and we are running 17 signiﬁ cant lifecycle management 
projects during 2010 across the clinical portfolio 24 projects have 
successfully progressed to their next phase including 14 projects 
entering ﬁ rst human testing 34 projects have been withdrawn 
further details are set out in the therapy area review from page 50 
and in the development pipeline table from page 206 
operating model
as demonstrated by the lifecycle of a medicine overview on 
page 20 our rd activities span the entire lifecycle of a medicine 
to help our focus on quality and reimbursable medicines we have 
created a new organisational structure which brings together drug 
discoverers and developers to focus and collaborate in speciﬁ c 
disease areas the operating model we have adopted is shown 
on page 29 and comprises the following key elements
imeds we have formed nine innovative medicine units or imeds 
which focus on particular disease areas and work across discovery 
and early development
  small molecule imeds
   oncology
   infection 
   respiratory  inﬂ ammation
  aligned small molecule and biologics imeds
   cardiovascular and gastrointestinal
   neuroscience
  biologics imeds
   oncology 
   infection
   respiratory  inﬂ ammation 
  a ninth new opportunities imed will focus on identifying 
opportunities in disease areas outside or complementary to our 
current research areas this will be done by seeking to acquire 
commercially viable late stage assets as well as by generating 
additional value from existing internal assets through alternative 
uses of such assets in disease areas of high unmet medical need
all imeds are responsible for sourcing innovation from both inside 
and outside astrazeneca and are accountable for delivering 
derisked differentiated proof of concept potential medicines to 
global medicines development that target the right area and show 
a medical beneﬁ t for patients
1
 includes seven lifecycle management projects reintroduced from bricmt and japan
astrazeneca annual report and form 20f information 2010
business review additional information financial statements corporate governance overview
delivering our strategy research and development 27 value of medicines to payers astrazeneca signed a collaboration 
agreement with healthcore which maintains the largest commercially 
insured population data environment in the us the collaboration 
enables us to signiﬁ cantly upscale our ‘real world’ studies of the 
key health outcomes that are increasingly important to payers 
additionally through our membership in the european healthcare 
leadership network we are working with payers and other external 
stakeholders to deﬁ ne early on the basis for demonstrating value 
an astrazeneca diabetes drug in phase i is the focus of one of the 
ﬁ rst pilots
personalised healthcare identifying patients most likely to 
beneﬁ t from our medicines is the goal of the newly formed 
personalised healthcare and biomarker function this group 
supports internal biomarker development and has established vital 
strategic alliances with external diagnostic companies to support 
our drug projects we now have 25 of our clinical development 
portfolio progressing personalised healthcare strategies
predictive science we are integrating modelling and simulation 
into many different aspects of rd examples include safety 
screening models that enable rapid assessment of common 
toxicities and in silico modelling of human exposure which has 
guided the design of antibodies with differentiated properties and 
subsequently informed their clinical development
new therapeutic modalities in 2010 we continued to make 
signiﬁ cant investments in new biologics technologies to generate 
novel and highly differentiated biologic therapeutics for example 
in neurology we have engineered a human protease to effectively 
degrade beta amyloid which holds great potential for treating 
alzheimer’s disease we have also entered into external 
collaborations to develop new approaches in the areas of small 
interfering ribonucleic acids sirnas and regenerative medicine
global medicines development gmd later stage 
development is undertaken by gmd it provides a single global 
platform dedicated to conducting trials for small molecules and 
biologics of the highest quality it is accountable for delivering the 
regulatory packages in support of new medicine launches that are 
commercially attractive and reimbursable
operation and governance a key strength of our new rd 
organisation is that it facilitates a more entrepreneurial climate 
increases the transparency of risk and drives stronger links between 
early discovery activities and phase ii studies this is complemented 
by rigorous oversight of phase iiaiib studies to the launch of a 
new medicine and beyond the portfolio investment board pib 
evaluates projects to help ensure astrazeneca is developing the 
kind of medicines that will make a difference for patients and return 
shareholder value the pib provides the necessary focus for our 
rd investment and provides appropriate oversight of investment 
opportunities across disease areas and modalities it is also 
charged with delivering a pipeline of products capable of generating 
attractive returns on invested capital further information about 
the pib can be found in the corporate governance report section 
from page 109
investing in capabilities
the success of our rd transformation rests in part on building 
industry leading capabilities to bring more valued and reimbursable 
medicines to market in 2010 we announced an investment of more 
than 200 million over ﬁ ve years to develop the tools and people 
to help us reshape rd performance this investment supports 
scientiﬁ c collaborations development of existing staff recruitment 
of new talent and provision of new infrastructure including informatics 
platforms we are making steady progress across all these areas
payer considerations our rd and commercial organisations 
are working together to deliver the best global reimbursement 
dossier for our medicines within gmd we are building a payer 
evidence group that supports both commercial and rd in 2010 
as part of our strategy to be an industry leader in demonstrating the 
2010
34 32 9 17
2009 44 34 11 14
2008
34 31 10 23
2007 41 20 10 24
2006 23 18 5 25
clinical
 phase i  phase ii  phase iii  line extensions
development projects 
astrazeneca annual report and form 20f information 2010 28 delivering our strategy research and development
delivering our strategy clinical trial design and interpretation to ensure these 
capabilities are ﬁ rmly integrated into our drug development 
programmes and that we realise the beneﬁ ts of clear clinical 
decisions we have also invested to improve the quality of our 
design capability for clinical trials
culture we are progressing an integrated programme to drive 
cultural change throughout the rd organisation a signiﬁ cant ﬁ rst 
step was the appointment of new leadership teams together with 
an evolution of our business systems to facilitate a move towards 
a more innovative collaborative and creative culture
external focus
we intend to increase our externalisation efforts to access the 
best most cuttingedge science whatever its origin with a target 
of 40 of our pipeline sourced from outside our laboratories by 
2014 by bringing together the best minds to address medical 
problems we aim to facilitate groundbreaking discoveries 
either within our organisation or through a public or private 
partnership focused on the problem as part of this approach 
we are involved in the innovative medicines initiative imi which 
brings together the european pharmaceutical industry and the 
european commission with the aim of improving the tools 
technologies methodologies and knowledge management to 
bring new medicines to market over the next 10 years imi 
participants have pledged a total of 27 billion half from the 
private sector and half from the public sector
we are also committed to making our compounds available to 
organisations pursuing new therapies in a collaboration with the 
uk’s medical research council we are sharing access to our 
compound libraries to aid the search for potential new treatments 
for serious diseases 
in all our collaborations we recognise that ‘one size does not ﬁ t 
all’ we seek to partner and collaborate in novel ways that maximise 
not only the collective scientiﬁ c knowledge of all participants but 
also the unique knowledge that each partner brings to the process 
including in emerging markets it is this approach that underpins 
our exclusive worldwide licence agreement with rigel for the 
global development and commercialisation of fostamatinib 
formerly known as r788 rigel’s latestage investigational product 
for rheumatoid arthritis and our collaboration with dainippon 
sumitomo for a potential asthma treatment
our resources
at the end of 2010 we had a global rd organisation with 
approximately 15700 people 12400 full time equivalent employees 
at 14 principal centres in eight countries 
as communicated last year our plans for transforming rd include 
a number of site changes which will result in a simpliﬁ ed site 
footprint with a clear role for each facility these changes will affect 
approximately 3500 employees with a net reduction of 1800 
positions in the uk we have exited rd activities in avlon kudos 
and arrow therapeutics and we will exit all rd activities in our 
charnwood site during 2011 in north america we have exited all 
rd operating model 
strategic
governance
portfolio investment board 
chaired by the ceo
separate committees for small 
molecules and biologics
product review board operational
governance
innovative medicines units – 
biologics led
innovative medicines units – 
small molecules led
 small molecules focused
 aligned biologics and small molecules
global 
medicines 
development
market internal 
and 
external 
opportunities
discovery and early 
development
latestage
development
portfolio investment board 
decision
astrazeneca annual report and form 20f information 2010
business review additional information financial statements corporate governance overview
delivering our strategy research and development 29 pharmaceutical development activities from newark delaware 
and all drug discovery activities at wilmington delaware in january 
2011 we signed an agreement to sell our site in lund sweden 
and we are on track to exit this site during 2011 
a number of our remaining sites will grow to accommodate activities 
from the sites we are closing these sites include our main small 
molecule facilities in the uk alderley park and macclesﬁ eld 
sweden möindal and the us waltham massachusetts other 
sites that have a focus on research are in sweden södertälje 
canada montreal quebec and france reims we have a 
clinical development facility in osaka japan our principal sites 
for biologics and vaccines are in the us gaithersburg maryland 
and mountain view california and the uk cambridge
as part of our strategic expansion in important emerging markets 
we own research capabilities in asia paciﬁ c which include our 
‘innovation centre china’ research facility in shanghai and our 
research facility in bangalore india
in 2010 there was core investment of 42 billion in our rd 
organisation 2009 43 billion 2008 5 billion in addition 
1017 million was spent on acquiring product rights such as 
inlicensing 2009 764 million 2008 2743 million and we 
invested around 284 million on the implementation of the rd 
strategy and enhancing capabilities in the us a further 283 million 
was approved during the year to further the support for the 
rd strategy by facilitating the consolidation of resources at 
key locations and developing it platforms
rd ethics
we recognise our responsibility to ensure that we underpin our 
continued drive for rd excellence with sound ethical practice 
worldwide we want to be recognised for our high quality science 
and for the impact we can make on serious diseases we also want 
to continue to be trusted this means setting and living up to high 
standards of ethical practice across all aspects of our research 
activity worldwide
you can read more about our standards of ethical practice and 
2010 performance in the responsible business section from 
page 40
intellectual 
property
protecting ownership of 
our inventions
“the principal economic safeguard in our 
industry is a wellfunctioning patent system 
that recognises our effort and rewards our 
innovation with appropriate protection”
jeff pott
general counsel
the discovery and development of a new 
medicine requires a signiﬁ cant investment of 
resources by researchbased pharmaceutical 
companies over a period of 10 or more years 
for this to be a viable investment the results 
– new medicines – must be safeguarded from 
being copied with a reasonable amount of 
certainty for a reasonable period of time
the principal economic safeguard in our industry is a well
functioning patent system that recognises our effort and 
rewards our innovation with appropriate protection allowing 
time to generate the revenue we need to reinvest in new 
pharmaceutical innovation we have conﬁ dence in our inventions 
and commit signiﬁ cant resources both to establishing and 
defending the patent and related intellectual property protections 
for these inventions
patent process
applications for patent protection are ﬁ led on our inventions 
to safeguard the large subsequent investment required to get 
potential new drugs approved for marketing further innovation 
means that we may seek additional patent protection as we 
develop a product and its uses we apply for patents via patent 
ofﬁ ces around the world in some countries our competitors 
can challenge our patents in the patent ofﬁ ces and in all 
countries competitors can challenge our patents in the courts 
we can face challenges early in the patent application process 
and throughout the life of the patent these challenges can be to 
the validity of a patent andor to the effective scope of a patent 
and are based on everevolving legal precedents there can be 
no guarantee of success for either party in patent proceedings 
for information about third party challenges to the patents 
protecting our products see note 25 to the financial statements 
from page 178
astrazeneca annual report and form 20f information 2010 30 delivering our strategy research and development
delivering our strategy the generic industry is increasingly challenging innovators’ 
patents at earlier stages and almost all leading pharmaceutical 
products in the us have faced or are facing patent challenges 
from generic manufacturers the researchbased pharmaceutical 
industry is also experiencing increased challenges elsewhere 
in the world for example in europe canada asia and latin 
america further information about the risks relating to patent 
litigation and early loss and expiry of patents is contained in 
the principal risks and uncertainties section from page 96
data exclusivity
regulatory data protection rdp or ‘data exclusivity’ is an 
important intellectual property right which arises in respect of 
data which is required to be submitted to regulatory authorities 
in order to obtain marketing approvals for our medicines 
signiﬁ cant investment is required to generate such data for 
example through conducting global clinical trials and the use 
of this proprietary data is protected from use by third parties 
such as generic manufacturers for a number of years in a 
limited number of countries the period of such protection 
and the extent to which the right is respected differs signiﬁ cantly 
between these countries we believe in enforcing our rights to 
rdp and consider it an important protection for our inventions 
particularly as patent rights are increasingly being challenged
compulsory licensing
compulsory licensing the overruling of patent rights to allow 
patented medicines to be manufactured and sold by other 
parties is increasingly being included in the access to medicines 
debate we recognise the right of developing countries to use 
the ﬂ exibilities in the world trade organization’s trips trade
related aspects of intellectual property rights agreement 
including the doha amendment in certain circumstances 
such as a public health emergency we believe that this should 
apply only when all other ways of meeting the emergency needs 
have been considered and where healthcare frameworks and 
safeguards are in place to ensure that the medicines reach 
those who need them
patent expiries
the tables above set out certain patent expiry dates and sales 
for our key marketed products the expiry dates relate to the 
basic substance patent relevant to that product unless indicated 
otherwise the expiry dates shown include any patent term 
extension and paediatric exclusivity periods 
patent expiries for our key marketed products
us revenue m
key marketed products us patent expiry 2010 2009 2008
nexium 2015
1
2695 2835 3101
crestor 2016 2640 2100 1678
toprolxlseloken expired 689 964 295
atacand 2012 216 263 262
symbicort 2014 combination 2023 formulation 2026 pmdi device 721 488 255
pulmicortpulmicort respules 2019
2
 respules 2018 turbuhaler formulation 
2019 turbuhaler device
305 804 982
arimidex expired 494 878 754
zoladex expired 46 54 72
seroquel ir 2012 3107 3074 2895
seroquel xr 2017 formulation 640 342 120
synagis 2015 composition 2023 formulation 646 782 923
priloseclosec expired 47 64 171
merremmeronem expired 127 177 207
casodex expired 16 148 292
revenue m
3
key marketed products eu patent expiry canadian patent expiry japanese patent expiry 2010 2009 2008
nexium 2014 2014 2014 1422 1395 1387
crestor 2017 2012 2017 2201 1782 1410
toprolxlseloken expired expired expired 169 181 220
atacand 2010 to 2014 depending 
on country
2011 2014 837 808 836
symbicort 2018 formulation 
2019 turbuhaler device
2012 combination 
2018 formulation 
2019 turbuhaler device
2017 combination 
2018 formulation 
2019 turbuhaler device
1621 1459 1420
pulmicort
pulmicort respules
2018 respules
2018 turbuhaler formulation 
2022 pmdi device
2018 respules 
2018 turbuhaler 
formulation
2018 respules 
2018 turbuhaler formulation 
2022 pmdi device
353 347 364
arimidex 2011 2012 2012 843 875 930
zoladex expired expired expired 718 744 775
seroquel ir 2012 expired 2012 705 792 1009
seroquel xr 2017 formulation 2017 formulation na 401 301 90
synagis 2015 composition 2015 composition 2015 composition 392 300 307
priloseclosec expired expired expired 660 641 619
merremmeronem expired expired expired 377 409 387
casodex expired expired expired 457 588 838
  patents are or may be challenged by third parties and generics may be launched ‘at risk’ see the principal risks and uncertainties section from page 96 many of our products are subject to 
challenges by third parties details of material challenges by third parties can be found in note 25 to the financial statements from page 178 

 additional patents relating to the stated products may have terms extending beyond the quoted dates
1
 licence agreements with teva and ranbaxy pharmaceuticals inc allow each to launch a generic version in the us from may 2014 subject to regulatory approval
2
 a licence agreement with teva permits their ongoing us sale of a generic version from december 2009
3
 aggregate revenue for the eu canada and japan
astrazeneca annual report and form 20f information 2010
business review additional information financial statements corporate governance overview
delivering our strategy intellectual property 31 sales and marketing 
reinforcing our leading 
positions and investing  
in new regions
our global marketing and sales operations 
organisation is active in over 100 countries  
as well as building on our leading positions  
in the us and other established markets  
such as canada japan and western europe 
we continue to increase our strength through 
strategic investment in emerging markets 
where gdp growth and changing disease 
demographics present signiﬁcant opportunities
see the market deﬁnitions table on page 217  
for more information on astrazeneca’s  
market deﬁnitions
we work to ensure success in individual markets by having highly 
accountable local leaders who understand their markets and have  
a strong focus on proﬁtable business growth they are supported 
by a single global commercial organisation that develops global 
product strategies leverages best practice and drives synergies  
it also ensures a strong customer focus and commercial direction  
in the management of our pipeline and marketed products all our 
work is underpinned by a strong set of global standards which build 
on our code of conduct and our planned new global policy on 
external interactions for more information on this policy see the 
sales and marketing ethics section on page 43
driving commercial success
delivering commercial success requires us to be able to maximise 
the value of our portfolio across the whole lifecycle of a medicine 
from early in a product’s rd phase to maximising the earnings 
from our more mature medicines
at an early stage in the medicine discovery process we deﬁne what 
we believe the proﬁle of a medicine needs to be in order to work 
most effectively in combating a particular disease these disease 
target product proﬁles are based on the insights we gain through 
our relationships with healthcare professionals patients and others 
for whom the medicine must add value including regulators and 
payers they help shape our therapy area and marketing strategies 
more information on payer considerations can be found in the 
investing in capabilities section from page 28
100
active in over 100 countries
5bn 
annual crestor and seroquel sales exceeded 5 billion each
100
portfolio of more than 100 generic products being licensed across 
30 emerging markets for marketing under the astrazeneca brand
“all our work is underpinned by a strong set  
of global standards which build on our code  
of conduct and our planned new global policy 
on external interactions”
tony zook 
executive vicepresident global commercial operations
astrazeneca annual report and form 20f information 2010 32 delivering our strategy sales and marketing
delivering our strategy activities in 2010 focused on ensuring continued commercial 
excellence through growing the market share of our key products 
that retain market exclusivity such as crestor seroquel xr and 
symbicort in addition we must ensure that we successfully 
commercialise recently launched medicines such as onglyza
tm
 
and vimovo or prepare for the launch of the next wave of 
medicines such as briliquebrilinta at the same time we do not 
lose sight of the need to optimise the value of our mature medicines 
and drive their growth in new markets for example in 2010 we 
signed an agreement with daiichi sankyo for the copromotion and 
supply in japan of nexium which is already approved in more than 
120 countries under this agreement we will develop and manufacture 
the product daiichi sankyo will be responsible for its distribution 
and both parties will promote it after it is approved for use
global strategies tailored to meet local needs
all our markets have an important role to play in delivering our 
commercial strategy they are the base from which we drive  
growth and achieve business performance while both ensuring that 
costs remain under control and our capabilities are strengthened 
nevertheless we need to prioritise our investment in markets to 
ensure we allocate resources in the most costeffective way we  
did so in 2010 according to criteria such as market size and growth 
risk proﬁle our current position in a market and its commercial 
relevance this allows us to identify those markets of major 
signiﬁcance to us those that will become important drivers of  
our business in the future and those established markets where  
we need to change our approach to deliver sustained success  
we are supporting our work in these markets with investment in  
the capabilities necessary to deliver our business objectives
emerging markets
it has been estimated that emerging markets will contribute around 
70 of pharmaceutical industry growth in the next ﬁve years and 
branded generics represent approximately 50 by value in them 
we are continuing our programme of investment in large emerging 
markets such as china mexico brazil and russia as well as high 
growth mediumsized and smaller markets
to maximise our opportunities we are launching a range of 
branded genericised medicines this range will comprise a 
complementary portfolio of differentiated products that will be 
promoted alongside our patented original medicines in markets 
where we already have a developed commercial infrastructure 
existing relationships with healthcare professionals and a strong 
reputation in 2010 we continued the programme of launches  
we began in india in 2009 and launched a generic antiinfective 
medicine in a number of markets in addition we have identiﬁed a 
portfolio of more than 100 generic products which we are currently 
licensing across 30 emerging markets for marketing under the 
astrazeneca brand to help us license these dossiers and source 
the molecules we are working with a number of companies in  
india who work to our rigorous quality and process standards  
this includes an agreement with torrent to supply us with a portfolio 
of generic medicines for which torrent already has licences in  
a range of countries internally we have created a dedicated 
crossfunctional team to support our branded generics business
pricing our medicines
continued innovation is required to address unmet medical need 
our challenge is to deliver innovations that bring beneﬁts for patients 
and society at a level of investment and internal productivity that  
is appropriate given that the external environment is placing 
signiﬁcant downward pressure on drug pricing
our global pricing policy provides the framework for optimising  
the proﬁtability of all our products in a sustainable way it balances 
many different factors including ensuring appropriate patient 
access when setting the price of a medicine we take into 
consideration its full value to patients to those who pay for  
healthcare and to society in general our pricing also takes account 
of the fact that as a publicly owned company we have a duty to 
ensure that we continue to deliver an appropriate return on 
investment to our shareholders
meeting the needs of payers is an increasingly important 
requirement for us in order to develop products that meet those 
needs we are focusing even more on understanding the priorities 
and requirements of both payers and healthcare providers building 
on this information we can then demonstrate to our customers how 
our products offer value and support costeffective healthcare 
delivery our medicines play an important role in treating medical 
needs and in doing so they bring economic as well as therapeutic 
beneﬁts effective treatments can help to lower healthcare costs by 
reducing the need for more expensive care such as hospital stays 
or surgery or through preventing patients from developing more 
serious or debilitating diseases that are costly to treat they also 
contribute to increased productivity by reducing or preventing the 
incidence of diseases that keep people away from work
we continually review our range of medicines both those on the 
market and in the pipeline to identify areas where they may meet  
a particularly critical healthcare need but where for a number of 
reasons patient access may be challenging such critical healthcare 
needs may be either where our medicines treat diseases that are  
or are becoming prevalent in developing countries or where they 
are potentially a leading or unique therapy addressing an unmet 
medical need and offering signiﬁcant patient beneﬁt in treating a 
serious or lifethreatening condition in such cases where appropriate 
we aim to provide patient access to these medicines through 
expanded patient access programmes examples of such 
programmes exist worldwide we also support the concept of 
differential pricing in this context provided that safeguards are in place 
to ensure that differentially priced products are not diverted from 
patients who need them to be sold and used in more afﬂuent markets
an effective sales force
we sell our medicines in more than 100 countries around the  
world most of our sales are made through whollyowned local 
marketing companies elsewhere we sell through distributors or 
local representative ofﬁces our products are marketed primarily  
to doctors both primary care and specialist as well as to other 
healthcare professionals marketing efforts are also directed 
towards explaining the economic as well as the therapeutic beneﬁts 
of our products to governments and others who pay for healthcare
facetoface contact is the traditional marketing method and  
our efforts are focused on making this channel as effective and 
efﬁcient as possible with the use of telephone sales teams and 
dedicated customer service staff increasingly our sales force is 
being complemented by our use of the internet in the us where  
it is an approved and normal practice we also use directto
consumer advertising campaigns for some products
our rapid growth in emerging markets is driving demand for  
central commercial support particularly in respect of sales force 
effectiveness core sales and marketing training programmes have 
been adapted for and deployed in local environments the main 
focus of these programmes is to embed core commercial skills and 
to strengthen sales managers’ coaching and planning skills
sales and marketing ethics
the pharmaceutical sector is subject to increased oversight by 
regulators competition and other authorities as we drive the 
growth of our business and reshape our geographic footprint  
we remain committed to the responsible delivery of commercial 
success you can read more about our standards of ethical practice 
and 2010 performance in the responsible business section  
from page 40
astrazeneca annual report and form 20f information 2010
business review additional information financial statements corporate governance overview
delivering our strategy sales and marketing 33 our strategy is to balance inhouse manufacturing 
in efﬁcient plants with external manufacturing 
capabilities particularly in relation to the early 
stages of our production process as discussed 
in the sales and marketing section above we 
also see opportunities to use outsourced 
production in our branded generics business 
this balance is designed to give us product 
integrity and quality assurance while affording 
us cost efﬁciency and volume ﬂexibility
continuous improvement
we seek to maximise the efﬁciency of our supply chain through  
a culture of continuous improvement we focus on what adds  
value for our customers and patients and what eliminates waste 
this programme has delivered signiﬁcant beneﬁts in recent years 
including reduced manufacturing lead times and lower stock levels 
both of which improve our ability to respond to customer needs and 
reduce inventory costs changes have also been achieved without 
compromising customer service and quality
we have been applying lean business improvement tools and  
ways of working to improve the efﬁciency of our manufacturing 
plants for a number of years and are now applying them to the 
whole of our supply chain in 2010 we reinforced our commitment 
to creating a lean supply and manufacturing organisation with a 
global campaign to recruit more lean experts into our manufacturing 
sites and supply chain functions this has included the creation of  
a new global centre of excellence comprising lean experts from  
a broad range of industrial backgrounds to provide support and 
coordination to the accelerated development of our lean supply 
system this enables us to learn from other industries how to 
operate our supply chains at a much higher performance level  
than is generally found in the pharmaceutical sector
the inauguration of a new regional packing centre in wuxi  
china in 2010 was a key milestone we operate this centre to  
our global standards and apply a broad range of lean techniques 
and principles we believe it will improve our competitiveness in 
asian markets
product quality
we are committed to delivering product quality that underpins both 
the safety and efﬁcacy of our medicines we have a comprehensive 
quality management system in place designed to assure the quality 
of our products and regulatory compliance
supply and manufacturing 
maximising efﬁciency for 
the reliable provision of high 
quality medicines
23
23 manufacturing sites in 16 countries
333m 
capital expenditure on supply and manufacturing facilities totalled 
approximately 333 million
23
23 inspections from 13 different regulatory authorities
“key to our continued business success is our 
ability to provide our customers with a reliable 
supply of high quality medicines worldwide 
when they want them and to do so in the most 
costeffective way”
david smith 
executive vicepresident global operations and  
information services
astrazeneca annual report and form 20f information 2010 34 delivering our strategy supply and manufacturing
delivering our strategy manufacturing facilities and processes for medicines must observe 
rigorous standards of quality and are subject to inspections by 
regulatory authorities to ensure compliance with prescribed 
standards authorities have the power to require changes and 
improvements to facilities and processes to halt production and 
impose conditions that must be satisﬁed before production can 
resume regulatory standards are not harmonised globally and do 
change over time
we hosted 23 inspections from 13 different regulatory authorities  
in 2010 all observations from such inspections are reviewed along 
with the outcomes of our own internal inspections and improvement 
actions are put in place as required to ensure ongoing compliance 
with expectations if required we take action to improve quality  
and enhance compliance across the organisation the knowledge 
obtained from the inspections is shared across the group
we continue to be actively involved in providing input into new 
product manufacturing regulations both at national and 
international levels through our membership of industry 
associations primarily in the eu the us and japan
our resources
capital expenditure on supply and manufacturing facilities totalled 
approximately 333 million in 2010 2009 360 million 2008  
369 million as part of our overall risk management we carefully 
consider the timing of investment to ensure that secure supply 
chains are in place for our products we have a programme in place 
to provide appropriate supply capabilities for our new products
at the end of 2010 approximately 9300 people at 23 sites in  
16 countries were working on the manufacturing and supply of  
our products approximately 8350 people work in formulation and 
packaging and 350 people work in active pharmaceutical ingredient 
api supply our principal small molecule manufacturing facilities 
are in the uk avlon and macclesﬁeld sweden snäckviken and 
gärtuna södertälje the us newark delaware and westborough 
massachusetts france reims japan maihara australia north 
ryde china wuxi puerto rico canovanas germany wedel 
mexico lomas verdes brazil cotia and argentina buenos aires 
during 2010 we also opened a small packaging plant in indonesia 
we operate sites for the manufacture of apis in the uk and 
sweden complemented by the efﬁcient use of external sourcing 
our principal tablet and capsule formulation sites are in the uk 
sweden puerto rico and the us and we also have major 
formulation sites for the global supply of parenteral andor inhalation 
products in sweden france and the uk
some 600 permanent and an additional 250 seasonal people are 
employed at our four principal biologics commercial manufacturing 
facilities in the us frederick maryland and philadelphia 
pennsylvania the uk speke and the netherlands nijmegen  
with capabilities in process development manufacturing and 
distribution of biologics including worldwide supply of mabs  
and inﬂuenza vaccines our biologics production capabilities are 
scalable which enables efﬁcient management of our combined 
small molecule and biologics pipeline
managing sourcing risk
given our announced intention to outsource all api manufacturing 
we place particular importance on our global procurement policies 
and integrated risk management processes which aim to ensure  
the uninterrupted supply of sufﬁciently high quality raw materials 
these and other key supplies are purchased from a range of 
suppliers we focus on a range of risks to global supply such as 
disasters that remove supply capability or the unavailability of key 
raw materials and work to ensure that these risks are effectively 
mitigated contingency plans include the appropriate use of dual  
or multiple suppliers and maintaining appropriate stock levels 
although the price of raw materials may ﬂuctuate from time to time 
our global purchasing policies seek to avoid such ﬂuctuations 
becoming material to our business
we also take into account reputational risk associated with our use 
of suppliers and are committed to working only with suppliers that 
embrace standards of ethical behaviour that are consistent with our 
own for more information see the responsible business section 
from page 40 
the who estimates that between 1 and 30 rising  
to 50 on the internet of medicines sold worldwide are 
counterfeit every year thousands of patients are seriously 
harmed or killed as a result of taking these products rather 
than the real thing counterfeiting is particularly prevalent  
in the developing world and with medicines bought online
to combat the problem we have a comprehensive product 
security strategy which includes
  partnering with others to strengthen enforcement  
and raise awareness
   securing products through pack features and enhanced 
integrity of the supply chain
  combating illegal operations through proactive investigation 
of suspicious activity and reported incidents
in 2010 a lifethreatening counterfeiting operation was 
thwarted following an investigation in colombia twenty four 
members of a criminal gang were arrested in may on charges 
relating to making and selling a counterfeit of our antibiotic 
meronem suspicions ﬁrst came to light in 2007 when we 
received reports from employees about suspect meronem 
bearing the same batch number a painstaking investigation 
was carried out including the use of undercover techniques  
to gather evidence by early 2010 we were able to hand  
over enough evidence for the colombian police to conduct  
a series of raids
      what is being 
done to make  
sure my medicines 
are genuine
 
because health connects us all
for more information on our work to prevent and  
detect counterfeiting go to our website  
astrazenecacomresponsibility
astrazeneca annual report and form 20f information 2010
business review additional information financial statements corporate governance overview
delivering our strategy supply and manufacturing 35 with approximately 61000 people in over  
100 countries worldwide we value the talents 
skills and capabilities that a global workforce 
brings to our business our people strategy 
deﬁnes our approach to managing our 
workforce and supports the delivery of our 
business strategy our people strategy is built 
around four key priorities which we believe  
are critical to delivering our business objectives 
developing our performance culture developing 
our talent pipeline increasing our leadership 
and management capability and simplifying  
our organisational design we use a range  
of metrics to track progress against these 
priorities which are reported quarterly to  
our human resources hr leadership team
developing our performance culture
a key priority of our people strategy is the continued development  
of a performance culture across the organisation by strengthening 
our focus on setting high quality objectives aligned to our business 
strategy we will ensure that performance at all levels of the 
organisation delivers value the board is responsible for setting  
our highlevel strategic objectives and monitoring performance 
against them see the operation of the board section from page 
109 managers across astrazeneca are accountable for working 
with their teams to develop individual and team performance 
targets and for ensuring that our people understand how they 
contribute to overall business objectives
we will continue to empower our leaders to drive performance to 
hold our managers accountable for understanding and delivering 
against the standards required and provide the tools necessary  
to reward outstanding contributions
our focus on optimising performance is reinforced by performance
related bonus and incentive plans astrazeneca also encourages 
employee share ownership by offering the opportunity to participate 
in various employee share plans some of which are described  
in the directors’ remuneration report from page 119 and also  
in note 24 to the financial statements from page 173
61 000
61000 employees worldwide
employees by geographical area

 uk  
 sweden  
 rest of europe  
 north america  
 latin america  
 africa asia and australasia  
136
239
68
237
171
149
“our people strategy is built around the 
key priorities we believe to be critical to 
delivering our business objectives these  
include developing a high performance 
culture strengthening our talent pipeline 
and building capabilities”
lynn tetrault 
executive vicepresident human resources  
and corporate affairs
astrazeneca annual report and form 20f information 2010 36 delivering our strategy people
delivering our strategy
people 
nurturing a diverse and 
talented workforce developing our people
we encourage and support our people in achieving their full 
potential by providing a range of learning and development ld 
programmes which are designed to build the capabilities and 
encourage the behaviours needed to deliver our business strategy
we are implementing a global approach supported by the creation 
of our global talent and development organisation to ensure that 
high standards of ld practice are applied across the organisation 
we continue to develop and deploy instructorled and online 
development resources which we aim to make available to  
all employees to increase access to learning and to support 
selfdevelopment
we recognise the importance of good leadership and its critical  
role in stimulating high levels of performance and engagement  
our leadership development frameworks are focused on the  
core capabilities which we believe are essential for strong and 
effective leadership these capabilities are deﬁned for each level  
in the organisation and apply to all employees the development  
of a pipeline of future global leaders is a high priority and we work  
to identify individuals with the potential for more senior and complex 
roles these talent pools provide succession candidates for a  
range of critical leadership roles across astrazeneca we regard 
these individuals as key assets to the organisation and we 
proactively support them to reach their potential through for 
example global talent development programmes and targeted 
development opportunities
we complement our leadership capabilities with a set of manager 
accountabilities which deﬁne what we expect from our managers 
building line manager capability is supported by a suite of global 
learning programmes which address people management change 
management and other critical capabilities
the signiﬁcant shift in the footprint of our global workforce has 
placed a high priority on acquiring and retaining key talent our 
strategic workforce planning swp framework enables the 
business to develop the workforce required to deliver our strategy 
by ensuring that the right skills are in the right place at the right  
time to successfully deliver our business objectives swp generally 
takes a longerterm view of ﬁve to seven years and helps us identify 
and develop the necessary hr solutions to attract retain develop 
and deploy our workforce
we remain committed to making full use of the talents and resource 
of all our people we have policies in place to avoid discrimination 
including on the grounds of disability our policies cover recruitment 
and selection performance management career development and 
promotion transfer and training including retraining if needed for 
people who have become disabled and reward
diversity and inclusion
our global workforce provides a diversity of skills capabilities and 
creativity and we value the beneﬁts that such diversity can bring  
to our business we aim to foster a culture of respect and fairness 
where individual success depends solely on ability behaviour  
work performance and demonstrated potential as we reshape  
our organisation and geographic footprint our continuing challenge 
is to ensure that diversity in its broadest sense is reﬂected in our 
workforce and leadership and integrated into our business and 
people strategies
fifty one percent of our global workforce are women and twenty 
ﬁve percent of senior managers reporting to the set are women  
as part of developing a global diversity and inclusion strategy we 
have identiﬁed the need to look more closely at the advancement  
of women within astrazeneca working with an external expert  
we completed an extensive research project involving employees 
across a wide range of countries to understand what is preventing  
a greater number of women from reaching more senior levels in the 
business findings were shared with the board and the set which 
resulted in the formation of a global steering group chaired by our 
ceo and made up of senior leaders from across the business
the steering group is focused on driving change in three key  
areas that emerged as themes from the research ‘leadership  
 management capability’ ‘transparency in talent management  
 career progression’ and ‘work life challenges’ this work  
will continue to inform the development of our diversity and  
inclusion strategy
engagement and dialogue
we use a variety of global leadership communications channels  
to engage our people in our business strategy in addition  
local leaders and managers hold regular meetings with their  
teams we also use the intranet video conferencing and yammer  
a social media tool to encourage dialogue we added a feedback 
mechanism to our annual global employee survey focus in 2010 
and received over 22000 comments on a variety of topics which 
are now informing our 2011 engagement plans
we measure levels of engagement the effectiveness of our 
communications and other areas critical to the performance of  
our business through our annual focus survey the results are 
communicated to all employees eighty eight percent of our  
people participated in our 2010 survey reﬂecting their continued 
conﬁdence in this feedback mechanism although our employee 
engagement score declined by one percentage point from 2009 
leadership category scores improved by ﬁve percentage points and 
the leadership communication score improved by four percentage 
points the survey also identiﬁed the key areas for attention in 2011 
including worklife balance change management and further 
improvement in leadership communications
2010 83
2009 84
2008 82
2006 80
there is no focus engagement score for 2007 as the survey was biennial until 2008
focus engagement scores
astrazeneca annual report and form 20f information 2010
business review additional information financial statements corporate governance overview
delivering our strategy people 37 simplifying our organisational design
we constantly look for ways to increase the efﬁciency and 
effectiveness of our organisation as outlined in the research  
and development and sales and marketing sections from pages 26 
and 32 respectively in 2010 we have improved accountability and 
decision making through the creation of single global commercial 
and rd functions each led by a single accountable leader
in addition to these structural changes the composition of  
our global workforce has changed signiﬁcantly in recent years  
our strategic focus on business growth in emerging markets  
and an increased biologics capability has meant the workforce  
in these areas has grown substantially as shown in the sales  
and marketing workforce composition ﬁgure below this increase 
has been accompanied by headcount reductions through 
restructuring in rd operations support functions and our sales 
and marketing workforce in established markets the net effect  
of these changes since 2007 has been to reduce our total 
headcount from 67 400 to 61000
our business change activity in 2010 and over the next three to  
four years will predominantly be associated with the implementation 
of our rd and commercial strategies the changes are designed 
to make sure that we are building critical capabilities driving 
efﬁciencies and aligning resources to business opportunities  
as announced in the ﬁrst half of 2010 these programmes are 
planned to impact 10400 positions by 2014 with a reduction  
of 2600 positions in 2010
we work to ensure a level of global consistency in managing 
employee relations while allowing enough ﬂexibility to support the 
local markets in building good relations with their workforces taking 
into account local laws and circumstances to that end relations 
with trade unions are nationally determined and managed locally  
in line with the applicable legal framework and standards of good 
practice however each change programme has its unique 
challenges and a standard solution may not always be appropriate 
where this is the case the appropriate solution is developed 
through consultation with employee representatives or where 
applicable trade unions with the aim of retaining key skills and 
mitigating job losses
following a period of consultation we made a number of changes 
to the uk deﬁned beneﬁt pension scheme in 2010 these changes 
resulted in some localised industrial action 
54
84
46
16
sales and marketing workforce composition
    emerging markets          established markets
2010
2002
astrazeneca annual report and form 20f information 2010
delivering our strategy
38 delivering our strategy people astrazeneca annual report and form 20f information 2010 delivering our strategy rd 39
business review additional information financial statements corporate governance overview
seventy years ago the discovery of 
antibiotics revolutionised the treatment of 
bacterial infections and saved millions of 
lives but the growing problem of bacterial 
resistance threatens to put global health at 
serious risk finding new antibiotics that 
will be effective against bacterial resistance 
is not impossible but it is challenging it is 
also an area that has not been a primary 
focus for the pharmaceutical industry in 
recent years astrazeneca is one of a few 
key players that has continued to invest in 
antibiotic research and in 2010 we made a 
regulatory submission in the eu for a new 
antibiotic zinforo that will provide new 
treatment options for grampositive 
infections such as those due to mrsa
another clear example of the challenge is provided by 
tuberculosis tb claims 5000 lives every day and multidrug 
resistant tb affects half a million people annually to 
accelerate development of new treatments a collaboration 
led by the bill and melinda gates foundation the tb alliance 
and the critical path institute has brought astrazeneca 
including our dedicated tb facility in bangalore india 
together with other pharmaceutical companies government 
agencies donors advocates academics and ngos 
no single organisation can win the bacterial battle we 
need a vibrant pipeline of new classes of antibiotics working 
together creatively in partnership with others we believe 
we can make a greater contribution to that goal
      who is 
protecting 
me from new 
infections
because health connects us all
for more information go to the therapy area review 
from page 50 responsible business 
committed to delivering 
value responsibly
11
11 conﬁrmed breaches of external sales and marketing regulations 
or codes globally
1

950
completed over 1950 responsible procurement assessments 
accounting for around 75 of our third party spend
8
ranked in the top 8 in the sector in the dow jones sustainability 
world and european indexes
in this section we describe how we are working 
to deliver business success responsibly 
including summary information about our 
commitment and performance in some key 
areas further information about these areas 
and others is available on our website 
astrazenecacomresponsibility
introduction
at astrazeneca we are dedicated to the research development 
manufacture and marketing of medicines that make a difference in 
healthcare for us this is at the core of our responsibility to our 
stakeholders and to society successful pharmaceutical innovation 
delivered responsibly brings beneﬁts for patients creates value for 
shareholders and contributes to the economic development of the 
communities we serve
as described in the our marketplace section from page 10 
astrazeneca operates in a dynamic environment that presents both 
opportunities and challenges to make sure we are well positioned 
to manage these our business strategy is driving signiﬁcant 
changes across our organisation previous sections have outlined 
how we are transforming rd expanding our footprint in emerging 
markets boosting our efforts to source innovation from outside 
astrazeneca and increasingly working in partnerships that broaden 
the base for success in improving healthcare at the same time  
we continue to drive efﬁciency and effectiveness across the 
organisation including increased outsourcing to a diverse range  
of strategic suppliers
our work to implement these changes is underpinned by our 
continued commitment to the sustainable development of our 
business which delivers value for our stakeholders and for us  
to that end our responsible business objectives must be closely 
aligned to and support delivery of our business strategy in the light 
of our accelerated strategy the insights gained from dialogue with 
our stakeholders and our internal risk assessment we reviewed and 
reshaped our corporate responsibility cr plan during 2010 our 
new responsible business plan combines our cr and compliance 
agenda and puts at the top those areas most impacted by the 
changes to our business and which are therefore key enablers of 
our strategy
michele hooper dame nancy rothwell 
senior independent  nonexecutive director with 
nonexecutive director and responsibility for overseeing 
chairman of the audit committee responsible business 
 
“we believe that to be successful in delivering our 
strategic priorities a strong focus on responsible 
business is essential it’s fundamental to our 
reputation stakeholders need to be conﬁdent 
that we apply sustainability considerations and 
high ethical standards across all our activities 
whether inhouse or outsourced in both 
established and emerging markets being 
welcomed as a trusted partner as we reshape 
our geographic footprint and increase our 
externalisation is critical to our success”
astrazeneca annual report and form 20f information 2010 40 delivering our strategy responsible business
delivering our strategy this means a speciﬁc focus on
  rd ethics – underpinning our drive for innovation with sound 
ethical practice worldwide
  sales and marketing practices – driving consistently high ethical 
standards to promote our medicines responsibly worldwide
  human rights – making sure that we continue to develop and 
drive a consistent approach across all our activities
  access to healthcare – exploring ways of increasing access  
to healthcare for underserved patient populations
  suppliers – working only with organisations who embrace  
ethical standards that are consistent with our own
as well as managing speciﬁc responsible business challenges 
associated with the changes to our strategy we will be maintaining 
focus on other aspects of our responsibility
  patient safety
  environment
  employee safety health and wellbeing
  community investment
our new responsible business plan which will include associated 
objectives targets and kpis maps our agenda and sets our 
direction for the next ﬁve years we aim to launch it in the ﬁrst 
quarter of 2011 and publish it on our website astrazenecacom  
at the time because this is a dynamic and evolving area we will 
continue to engage with our stakeholders and work within the 
business to understand how we can further improve our 
performance
accountabilities and responsibilities
the board is responsible for our responsible business framework 
and nonexecutive director dame nancy rothwell oversees 
implementation and reporting to the board michele hooper chairs 
the audit committee which oversees the work of the global 
compliance function
the set and senior managers throughout the group are 
accountable for responsible business management within their 
areas based on the global framework but taking into account 
national functional and site issues and priorities line managers  
are accountable for ensuring that their teams understand the 
requirements and that people are clear about what is expected  
of them as they work to achieve astrazeneca’s business goals 
individually everyone in astrazeneca has a responsibility to  
integrate responsible business considerations into their daytoday 
decision making actions and behaviours
our dedicated global corporate responsibility team works 
together with the set areas and the global compliance function 
across the business to ensure that responsible business risks and 
opportunities are identiﬁed and managed appropriately in line with 
our strategic business objectives
external engagement and benchmarking
stakeholder engagement is critical to keeping in touch with the 
demands of sustainable development it was particularly important 
in 2010 as we worked to develop our new responsible business 
plan and alongside our ongoing stakeholder dialogues we held a 
number of multistakeholder events for example we hosted two 
roundtable discussions in london and stockholm to gain a better 
understanding of what our stakeholders believe to be important 
responsibility considerations as our business moves into emerging 
markets participants included socially responsible investors sris 
medical researchers academics politicians and regulators we also 
arranged an event speciﬁcally for key sri contacts the agenda 
reﬂected areas of interest expressed by the sri community and  
so focused on rd strategy emerging market strategy and 
responsible procurement the insights we gained from these 
events and other singleissue engagement during the year 
signiﬁcantly inﬂuenced the shape of our new plan we will continue 
to engage with our stakeholders on the further development of the 
plan to ensure that we are staying in close touch with the changing 
expectations of a responsible business
we also use the insights we gain from external surveys to develop 
our approach in line with best practice on a global basis a member 
of the dow jones sustainability index since 2001 we continue to  
be ranked among the sustainability leaders in the pharmaceutical 
sector in the 2010 index we increased individual scores for nine 
out of 23 criteria compared to 14 out of 24 criteria in 2009 including 
improved marks for innovation management and stakeholder 
engagement we lost ground in some areas including corporate 
governance marketing practices and environmental policy to 
better understand these lower scores we have commissioned an 
indepth external benchmark survey and the analysis will be used  
to inform our improvement planning the survey is expected to 
report in the ﬁrst quarter of 2011
external assurance
bureau veritas has provided external assurance on responsible 
business related information within this annual report and of the 
detailed content of the responsibility section of our website bureau 
veritas has found the information provided within this annual report 
to be accurate and reliable based on the evidence provided and 
subject to the scope objectives and limitations deﬁned in the full 
assurance statement the full assurance statement which contains 
detailed scope methodology overall opinion and recommendations 
can be found on our website astrazenecacom web page content 
assured by bureau veritas is marked at the bottom of each page
bureau veritas is an independent professional services company  
that specialises in quality health safety social and environmental 
management with a long history of providing independent assurance 
services and had an annual turnover in 2009 of €26 billion
rd ethics
we are determined to make sure that the strategic changes  
we are making within rd are underpinned by our ongoing 
commitment to delivering innovation responsibly compliance with 
relevant laws and regulations is a minimum baseline and underpins 
our own global principles and standards as outlined in our global 
bioethics policy
clinical trials
clinical trials are the means by which we study the effects of a 
potential new medicine in humans we conduct clinical trials at 
multiple sites in several different countries a broad geographic 
span helps us to ensure that those taking part in our studies  
reﬂect the diversity of patients around the world for whom the  
new medicine is intended this approach also helps to identify the 
types of people for whom the treatment may be most beneﬁcial
our global governance process for determining where we place 
clinical trials provides the framework for ensuring a consistent 
approach worldwide we take several factors into account including 
the availability of experienced and independent ethics committees 
and a robust regulatory regime as well as sufﬁcient numbers of 
trained healthcare professionals and patients willing to participate  
in a trial 
before a trial begins we work to make sure that those taking part 
understand the nature and purpose of the research and that proper 
procedures for gaining informed consent are followed including 
managing any special circumstances such as different levels of 
literacy we also have procedures in place to ensure that the 
privacy of participants’ health information is protected
one of our core responsibilities to those taking part in our trials is to 
make sure that we protect them from any unnecessary risks 
astrazeneca annual report and form 20f information 2010
business review additional information financial statements corporate governance overview
delivering our strategy responsible business 41 wherever possible we use nonanimal methods such as computer 
modelling that eliminate the need to use animals early in drug 
development or reduce the number required we also work to reﬁne 
our existing methods this replacement reduction and reﬁnement 
of animal studies is known as ‘the 3rs’ and to support our drive for 
continuous improvement we work both within astrazeneca and the 
wider scientiﬁc community to share 3rs knowledge and learning
the number of animals we use will continue to vary because it 
depends on a number of factors including the amount of pre
clinical research we are doing the complexity of the diseases under 
investigation and the regulatory requirements we believe that 
without our active commitment to the 3rs our animal use would  
be much greater in 2010 we used approximately 408000 animals 
inhouse 2009 393000 in addition approximately 21000 animals 
were used by external cros on our behalf 2009 17 000
the welfare of the animals we use continues to be a top priority  
and our standards apply worldwide in addition to mandatory 
inspections by government authorities we have a formal 
programme of regular audits of our internal animal research facilities 
conducted by our own qualiﬁed staff to make sure that they 
continue to support our drive for consistently high standards of 
animal care worldwide we updated our standards during 2010 to 
increase clarity about their scope and associated accountabilities 
and responsibilities
external cros that conduct animal studies on our behalf are 
required to comply with our global standards and we undertake a 
regular riskbased programme of audits to ensure our expectations 
are being met
we support the introduction of new legislation across eu member 
states which has created consistent standards regarding the use of 
laboratory animals we actively contributed to discussions to ensure 
that the new eu directive 201063eu on animals used for scientiﬁc 
purposes which became law in november strikes a balance 
between improving animal welfare and maintaining the ability to 
conduct rd in europe that brings beneﬁt for patients
stem cell research
we believe that stem cell research may offer new opportunities to 
develop innovative and safer medicines our commitment to high 
ethical standards in this area of research is reﬂected in our bioethics 
policy which demands compliance with all external regulations and 
with our own codes of practice
some research in this ﬁeld uses stem cells from human embryos 
human embryonic stem cells hesc created during in vitro 
fertilisation procedures but which become surplus to requirements 
we are particularly interested in the potential of stem cells to 
differentiate into normal human cells such as cardiac myocytes 
heart muscle cells or hepatocytes liver cells if achieved these 
could be used to improve prediction of the safety metabolism  
and efﬁcacy of emerging candidate drugs at an earlier stage in the 
process and would help us to overcome the current limitations that 
a restricted supply of human tissue presents signiﬁcant scientiﬁc 
progress has been made in the development of such stem cell 
based research models with some promising results however 
more work is needed to understand the full potential of this type of 
research we do not have all the necessary skills and technologies 
inhouse and so are working with external partners who have 
expertise and an ethical commitment consistent with our own 
these include stem cells for safer medicines a uk publicprivate 
partnership and cellartis ab a biotech company
throughout the research process we continuously review and 
make judgements on whether the potential beneﬁts of a new 
medicine continue to outweigh the risk of side effects as well as 
compliance with all relevant laws we have strict internal procedures 
for managing safety issues during clinical trials and ensuring we act 
in the best interests of participants
all our clinical studies are conceptually designed and ﬁnally 
interpreted inhouse but some of them are run for us by external 
contract research organisations cros in 2010 around 47 of 
patients in our small molecule studies and around 87 of patients in 
our biologics studies were monitored by cros on our behalf we 
contractually require cros to work to our global standards
we publish information about the registration and results of all our 
clinical trials whether favourable or unfavourable to astrazeneca 
on a range of public websites including our own dedicated site 
astrazenecaclinicaltrialscom by the end of 2010 we had registered 
over 1250 trials and published the results of more than 800
animal research
animal studies continue to play a vital role in the search for new 
medicines they provide essential information not available through 
other methods about the effects of a potential new therapy on 
disease and the body regulatory authorities around the world also 
require safety data from preclinical testing in animals before a new 
medicine can be tested in humans
as we work to improve our rd productivity we remain committed 
to minimising our use of animals without compromising the quality 
of the research data all research using animals is carefully 
considered and justiﬁed not only to conﬁrm the scientiﬁc need for a 
study but also to make sure that it has been designed so that the 
minimum number of animals is used and that they are exposed to 
as little pain and distress as possible
patients in global astrazeneca small molecule studies 
by geographical area in 2010
 europe 27 
 uscanada 22  
 asia paciﬁc 13 
 centraleastern europe 18  
 japan 8 
 south africa 1
 latin america 10
 other 1 
patients in global astrazeneca biologics studies 
by geographical area in 2010
 europe 1 
 uscanada 88  
 asia paciﬁc 1  
 centraleastern europe 4 
 japan 1 
 south africa 1
 latin america 3
 other 1 
astrazeneca annual report and form 20f information 2010 42 delivering our strategy responsible business
delivering our strategy  induced pluripotent stem cells ipsc which can be obtained safely 
from adult volunteers and do not involve embryos at all may provide 
a scientiﬁcally viable alternative to hesc we are in the process  
of establishing a dedicated ipsc department to facilitate the 
application of ipsc as a tool to derive more nativelike human  
cells in vitro we also plan further collaborations in this ﬁeld
separately we are exploring the potential to treat disease by 
modulation of stem cells within target organs which is an exciting 
new area often referred to as regenerative medicine we are 
embarking on several external partnerships to combine the best 
ideas and latest innovation in academic research with our ability  
to search for new drugs we are looking for the potential of small 
molecules or biologics to modulate stem cells in patients’ tissues to 
repair or improve the function of diseased tissue our collaborations 
with the institute of ophthalmology at university college london 
announced in september and evotec agdevelogen ag 
announced in december represent important investments in 
regenerative medicine which focus on exploring regenerative 
therapies for diabetic retinopathy and diabetes respectively 
sales and marketing ethics
driving consistently high standards of sales and marketing practice 
worldwide remains a top priority this is particularly important  
and at times challenging given the diversity of business cultures 
around the world as we continue our strategic drive to grow  
our business by expanding our presence in emerging markets 
alongside our work to ensure high standards are applied across  
our new geographies we remain committed to continuous 
improvement in our established markets
compliance with all relevant external sales and marketing codes 
and regulations and with our own policies is mandatory and 
monitored by line managers locally who are supported by 
dedicated compliance professionals we also have a nominated 
signatory network that works to ensure that our promotional 
materials meet all applicable requirements
information concerning instances of potential noncompliance is 
collected through our compliance incident management processes 
and reviewed by senior management in local andor regional 
compliance committees as appropriate serious breaches are 
reviewed by the board and the audit committee more information 
about our compliance and risk assurance processes is contained in 
the managing risk section from page 95 we take all breaches very 
seriously and act to prevent repeat occurrences
during 2010 we reviewed our existing sales and marketing  
policies and standards further strengthened the requirements  
and consolidated the range to form a single new global policy  
on external interactions we aim to launch the new policy in the  
ﬁrst quarter of 2011 followed by training of all relevant staff to 
reinforce our commitment to consistent ethical interactions with 
stakeholders worldwide
in 2010 we identiﬁed a total of 11 conﬁrmed breaches of external 
sales and marketing regulations or codes globally 2009 24 2008 15
it should be noted that cases where regulatory authorities approach 
astrazeneca with concerns or queries about sales and marketing 
materials or activities for example in the course of their routine 
review responsibilities are not included in our kpi number however 
we follow up these incidents with appropriate actions so that all 
relevant learning is taken into account in our future activities
while our kpi provides a benchmark against which to measure our 
performance yearonyear see above the varying national and 
regulatory deﬁnitions of what constitutes an external breach will 
continue to create a challenge for us in interpreting the data at a 
global level in addition a single conﬁrmed breach can involve more 
than one employee failing to meet the standards required and as 
described earlier there may be failures to meet standards which are 
not ‘conﬁrmed’ and so will not affect the kpi
during 2010 we looked at additional ways of reporting our 
performance which would support increased transparency about 
our practices we are now reporting the global number of 
commercial employees involved in disciplinary actions during the 
year including the number of associated dismissals see above 
this information provides the broader context of our internal 
governance and the number of actions taken in relation to breaches 
of external or internal sales and marketing codes it also reinforces 
for our employees and other stakeholders how seriously we take 
breaches of our policies
us corporate integrity agreement reporting
in april 2010 astrazeneca signed an agreement with the us 
department of justice to settle an investigation relating to the sales 
and marketing of seroquel ir the requirements of the associated 
corporate integrity agreement between astrazeneca and the  
ofﬁce of the inspector general of the us department of health and 
human services oig include a number of active monitoring and 
selfreporting obligations that differ from selfreporting required  
by authorities in the rest of the world to meet these obligations 
astrazeneca provides notices to the oig describing the outcomes 
of particular investigations potentially relating to violations of certain 
laws as well as a separate annual report to the oig summarising 
monitoring and investigation outcomes relevant to corporate 
integrity agreement requirements 
human rights
human rights remain at the core of our commitment to responsible 
business as we reshape our organisation grow our business and 
increase our outsourcing we are working to make sure that we 
continue to drive and share best practice across all our activities
disciplinary actions breaches of code of conduct by 
commercial employees 2010
number of employees
action taken 2010
1
2009
2
removed from role 117 99
formal warning 740 687
guidance and coaching 768 416
total 1625 1202
1
  2010 data reﬂects improved data capture mechanisms that will be used going forward to report 
breaches by commercial employees yearonyear 
2
   2009 data shows breaches of code of conduct by all employees and is included for 
comparative purposes only 
2010
1
11
2009
1
24
2008 15
1
 includes selfreporting activity globally which resulted in a breach being ruled
global kpi breaches of external sales and marketing codes
and regulations ruled by external bodies 
3 year performance
astrazeneca annual report and form 20f information 2010
business review additional information financial statements corporate governance overview
delivering our strategy responsible business 43 for further information about pricing our medicines and our 
intellectual property protection see the pricing our medicines 
section on page 33 and the intellectual property section from  
page 30
working with suppliers
we continue to work to make sure that our purchasing is directed 
only to those organisations which embrace ethical standards 
consistent with our own this is particularly important given the 
strategic changes to our geographic footprint and our increased 
outsourcing activity to support improved efﬁciency and 
effectiveness across the organisation
our global responsible procurement standard deﬁnes the process 
for integrating our ethical standards into our procurement activity 
and decision making worldwide the process is based on an 
escalating set of riskbased due diligence activities applied in a 
pragmatic way the same initial assessment process is used for all 
suppliers and more detailed speciﬁc assessments are then made 
as required proportionate to the level of risk a supplier presents 
the standard includes detailed expectations of suppliers which 
suppliers sign up to as part of the contracting process we will work 
with suppliers to help them improve their standards rather than 
automatically excluding them from our supply chain but we will not 
use suppliers who are unable or unwilling to meet our expectations 
in a timely way
implementing our approach across the many thousands of 
suppliers we work with around the world will take time we started 
with our largest suppliers whose contracts with astrazeneca  
are managed centrally by our procurement team in 2009 we 
completed responsible procurement assessments of over 800 
suppliers accounting for around 65 of our third party spend  
in 2010 we extended the programme to other companies in  
our supply chain including smaller suppliers and those whose 
contracts are managed locally since the programme began  
we have completed over 1950 assessments which account for 
around 75 of our third party spend the ongoing programme  
will continue throughout 2011 and beyond
in late 2010 we introduced a requirement that our key suppliers 
provide independent audit veriﬁcation that their ethical standards 
are being applied in practice together with our suppliers we  
are partnering with experienced third party providers in this  
work and using an assessment programme that reﬂects best 
practice from other industry sectors as well as the principles  
of the pharmaceutical supply chain initiative a group of major 
pharmaceutical companies working to support suppliers in 
operating in line with industry expectations we are in the early 
stages of engaging with suppliers on the introduction of this 
requirement and it will take time to embed the practice however 
we believe that this move signiﬁcantly strengthens the framework  
for working together with our suppliers to drive continuous 
improvement
we continued our integrated supplier evaluation protocol audit 
programme during the year and have now supplemented this  
with the introduction of focused responsible procurement 
assessments in 2010 the programme covered 48 audits at  
42 different suppliers 2009 51 audits at 45 suppliers
patient safety
the safety of the patients who take our medicines will always be  
a fundamental consideration for us all drugs have potential side 
effects and we aim to minimise the risks and maximise the beneﬁts 
of each of our medicines beginning with the discovery of a potential 
new medicine and continuing throughout its development launch 
and marketing
in january 2010 astrazeneca signed up to the united nations 
global compact ungc a strategic publicprivate initiative for 
organisations committed to social and environmental sustainability 
this means that we have committed to uphold 10 internationally 
recognised principles in the areas of human rights labour 
standards environmental sustainability and anticorruption these 
are not new principles for astrazeneca as described in our code  
of conduct and global policies but joining the ungc reinforces 
how seriously we take our commitment to them it also gives us the 
framework for further developing our commitment in the areas of 
human rights and labour standards
in recent years we have been participating in a project led by  
the danish institute for human rights dihr working with the 
pharmaceutical industry to develop a human rights assessment tool 
for pharmaceutical companies based on the dihr’s existing human 
rights compliance assessment tool the ﬁrst pharmaceutical 
industry version of the tool was launched in november
our participation in the project helped to improve our understanding 
of the speciﬁc human rights implications for our industry and during 
2010 we focused on further understanding how the human rights 
and labourrelated ungc principles apply to our activities
as part of this we conducted a human rights selfassessment pilot 
study in our marketing company in south africa the study focused 
on employment practices rd products and marketing and the 
community the outcomes were positive overall due principally we 
believe to the extensive external regulation governing these issues 
in south africa however the assessment usefully highlighted areas 
of astrazeneca’s global governance which required improvement 
including increased alignment with the international labour 
organization ilo core conventions which has also been raised 
during our stakeholder engagement we subsequently conducted a 
human rights based review of our code of conduct and our global 
policies focusing in particular on labour standards and diversity 
we will be using the outcomes and recommendations on how to 
further strengthen our governance in these areas to inform the 
further development of our code of conduct and global policies
we also used the dihr assessment tool to conduct a labour  
review in 11 of our marketing companies including some countries 
where national labour standards are not consistent with global  
best practice the review focused on ilo core areas freedom of 
association and collective bargaining forced and bonded labour 
child labour discrimination and working time and wages the 
results showed that our practices are in the main consistent around 
the world based on our requirement that our global standards  
are applied when external national standards do not meet 
astrazeneca’s minimum standards however we identiﬁed the 
need for more consistency in some areas for example working 
time and some aspects of diversity
we have developed a global approach and framework for 
progressing our human rights agenda including deﬁned 
accountabilities and responsibilities and an action plan to ensure 
that human rights continue to be appropriately integrated into our 
strategies policies and processes we plan to begin a phased  
rollout across astrazeneca in the ﬁrst half of 2011
access to healthcare
we continue to review our approach to improving access to 
healthcare in underserved communities in a sustainable way  
the review includes engaging with external stakeholders and 
working within the business to understand the challenges and the 
opportunities the assessments associated with the 2010 access 
to medicines index are also informing our thinking we anticipate 
publication of the outcome of this review in the ﬁrst half of 2011  
on our website astrazenecacomresponsibility 
astrazeneca annual report and form 20f information 2010 44 delivering our strategy responsible business
delivering our strategy  after launch we continually monitor the use of all our medicines  
to ensure that we become aware of any side effects not identiﬁed 
during the development process this is known as pharmacovigilance 
and is core to our ongoing responsibility to patients we have 
comprehensive and rigorous pharmacovigilance systems in  
place for detecting and rapidly evaluating such effects including 
mechanisms for highlighting those that require immediate attention 
we also work to ensure that accurate wellinformed and uptodate 
information concerning the safety proﬁle of our drugs is provided to 
regulators doctors other healthcare professionals and where 
appropriate patients
we have an experienced inhouse team of clinical patient safety 
professionals working around the world who are dedicated to the 
task of ensuring that we meet our commitment to patient safety  
at a global level every medicine in development and on the market 
is allocated a global safety physician and a team of patient safety 
scientists in each of our markets we also have dedicated safety 
managers with responsibility for patient safety at a local level
our two chief medical ofﬁcers one for our small molecule products 
and one for biologics have overall accountability for the beneﬁtrisk 
proﬁles of the products we have in development and those on the 
market they provide medical oversight and ensure that appropriate 
risk assessment processes are in place to enable informed 
decisions to be made about safety as quickly as possible
we use an external provider tata consultancy services tcs to 
manage the data entry process for individual case safety reports 
relating to astrazeneca products as experts in their ﬁeld tcs is 
driving improvements in the efﬁciency and consistency of data entry 
across astrazeneca and using tcs for this work means our patient 
safety teams can focus primarily on case prioritisation the medical 
aspects of patient safety and continuing to improve our safety 
science tcs is contractually required to comply with our patient 
safety standards and is closely monitored through audits against 
detailed quality and compliance performance indicators
environment
managing our environmental impact continues to be a core 
commitment for astrazeneca we have made good progress in recent 
years and have met the majority of the 2010 objectives and targets 
that we set ourselves in 2005 we met our targets for waste and 
overall greenhouse gas footprint however against a targeted 12 
reduction in emissions excluding those from our respiratory therapies 
we achieved a 9 reduction we know that there will always be more 
to do to make sure that we effectively balance the changing priorities 
of our business with the needs of the external environment
during 2010 we launched a new safety health and environment 
she strategy and associated objectives that set the direction for 
this key aspect of our responsibility over the next 10 years new 
targets have been adopted to focus our efforts to 2015 and set us 
on track to meet our 2020 strategic ambitions
product stewardship
we aim to integrate environmental considerations into a medicine’s 
complete lifecycle – from discovery and development through 
manufacturing marketing use and ultimately disposal
we conduct environmental risk assessments for all our new and 
many of our established medicines in accordance with applicable 
regulations going beyond the regulatory requirements we have 
also reviewed the environmental risk assessments for many of  
our older established products and where appropriate have 
undertaken voluntary testing to reﬁne the assessments we make 
environmental risk data for our existing products publicly available 
via the swedish doctors prescribing guide website fassse  
using the voluntary disclosure system introduced by lif the 
researchbased pharmaceutical industry association in sweden
our environmental risk management plans introduced in 2008 
now accompany new medicines along the path to launch these 
plans enable all available environmental data to be taken into 
account at key decision points during drug discovery and 
development and to provide early warning of medicines that  
could pose a potential risk to the environment we are also  
starting to develop plans for ‘ecopharmacovigilance’ that will  
help us to identify and manage any potential environmental risks 
associated with our medicines after they have been launched
in the design of manufacturing processes we are applying green 
chemistry principles that enable potential environmental issues to 
be identiﬁed and designed out at an early stage packaging is 
another area where we continue to make improvements that reduce 
the potential impact on the environment without compromising 
patient safety we are also working with national and local 
authorities to encourage appropriate disposal of unused medicines
underpinning all of this activity is our ongoing research into the 
effects of pharmaceuticals in the environment pie while improving 
all the time understanding of the potential for longterm effects in 
the environment for example to aquatic life requires further 
research this is a priority for our scientists at our environmental 
laboratory in brixham uk who are at the forefront of this ﬁeld of 
science working both independently and in collaboration with other 
companies leading academics and regulatory bodies to advance 
pierelated research
environmental sustainability
we aim to minimise our environmental impact by reducing the carbon 
footprint and natural resource demands of our business activities
2010 108
2009 112
2008 122
greenhouse gas emissions
1
co 2equivalents million tonnes
2010 34
2009 36
2008 40
figures are calculated in line with the greenhouse gas ghg protocol guidance ghgprotocolorg 
1
 data excludes medimmune
index tonnesm sales
2010 440
2009 500
2008 541
waste production
1
total waste thousand tonnes
2010 137
2009 160
2008 179
index tonnesm sales
1
 data excludes medimmune
astrazeneca annual report and form 20f information 2010
business review additional information financial statements corporate governance overview
delivering our strategy responsible business 45 we continue to provide a wide range of health and wellbeing 
improvement programmes across astrazeneca designed to help 
people understand their personal health risks and support them in 
proactively managing these risks our new health and wellbeing 
strategy in particular focuses on personal energy management 
training health screening and essential health activities such as 
improving physical ﬁtness and managing workplace pressure
workrelated stress remains our greatest single category of 
occupational illness with high workloads interpersonal issues  
and organisational change identiﬁed as signiﬁcant factors as part  
of our ongoing efforts in this area we are adopting an increasingly 
proactive riskbased approach using wellbeing risk assessment 
tools to identify highrisk areas and target interventions more 
effectively
community investment
wherever astrazeneca is located worldwide we aim to make  
a positive contribution to our local communities through 
sponsorships charitable donations and other initiatives that  
help to make a sustainable difference our investment is focused  
on improving health and promoting science skills
in 2010 we spent a total of 141 billion 2009 882 million on 
community sponsorships and charitable donations worldwide 
including our product donation and patient assistance programmes 
which make our medicines available free of charge or at reduced 
prices our patient assistance programmes in the us contributed  
to 138 billion worth of product donations valued at an average 
wholesale price 2009 786 million the increase over 2009 was 
due to an increasing number of people accessing our us patient 
assistance programmes due we believe to the economic 
recession and to the types of medicines that they were requesting
astrazeneca young health programme
in november we launched the astrazeneca young health 
programme this community programme is designed to help 
disconnected young people around the world understand and deal 
with the health issues they face adolescent health remains an 
underserved part of the healthcare agenda and this longterm 
investment programme aims to make a measurable and sustainable 
difference for disadvantaged young people we are working with 
expert partners plan ltd and johns hopkins school of public 
health to identify the needs in our local communities and to help 
address these needs with a combination of work on the ground 
research and advocacy we will also be providing employees with 
the opportunity to contribute through local volunteering donations 
and fund raising
we continue to drive reduction of our co 2 emissions by among 
other things improving our energy efﬁciency and pursuing 
lowercarbon alternatives to fossil fuels for example recognising 
the signiﬁcant global warming emissions from road travel by our 
sales ﬂeets we worked with our ﬂeet management and leasing 
suppliers to introduce ﬂeet reporting to track the co 2 emissions 
of new and existing vehicles we are also introducing co 2 caps 
on new car purchases in our major markets
our carbon footprint is also affected by some of our respiratory 
therapies speciﬁcally our pressurised metereddose inhalers that 
rely on propellants such as hydroﬂuoroalkanes hfas to deliver  
the medicine to a patient’s airways while hfas have no ozone 
depletion potential and a third or less of the global warming 
potential than the chloroﬂuorocarbons cfcs they replace they  
are still greenhouse gases but we believe that the potential beneﬁts 
that these therapies offer patients outweigh the potential impact  
on the environment
the management of waste is another key aspect of our commitment 
our main aim is waste prevention but where this is not practical we 
focus on waste minimisation and appropriate treatment or disposal 
to maximise the reuse and recycling of materials 
alongside these efforts we are increasingly working with our 
suppliers to measure and manage the environmental impact of their 
manufacturing activity on our behalf this is particularly important 
as we continue to increase our outsourcing in line with our strategic 
business objectives
employee safety health and wellbeing
providing a safe workplace and promoting the health and wellbeing 
of all our people remains a core consideration we believe that a 
safe healthy and energising working environment brings beneﬁt for 
our employees and for our business through people’s sustained 
engagement and contribution to astrazeneca’s success
we met our 20062010 safety and health target to reduce the 
combined serious injuryoccupational illness rate by 50 from the 
20012002 reference point achieving an actual reduction of 59
during 2010 we launched a new she strategy and in january 
2011 a complementary health and wellbeing strategy together 
with associated objectives and targets for 20112015 the new 
targets reﬂect our determination to stay focused on continuous 
improvement as we grow and reshape our business
driver safety remains our highest priority for improvement as we 
work to implement our new she strategy we regret that during 
2010 ﬁve of our employees died in trafﬁc accidents while driving  
on astrazeneca business we identiﬁed the root causes of these 
accidents and the learning informed the further strengthening of  
our global standards on driver safety management and accident 
investigation we also ran a global employee awareness campaign 
to reinforce the importance of safe driving practice this included 
our new global requirement that handheld mobile phones and 
other devices should never be used while driving our longstanding 
‘road scholars’ scheme in the us continues to be a valuable 
channel for building awareness and improving driver skills outside 
the us our ‘drive success’ programme takes into account the 
different driving environments in the various countries in which we 
operate and provides a highlevel framework of common standards 
and measures to be applied by each country performance is 
monitored centrally and lowscore markets are targeted for 
increased support on implementation
2010 078
2009 137
2008 104
astrazeneca employees cases of occupational illness
per million hours worked
2010 227
2009 224
2008 228
astrazeneca employees accidents with serious injuries
per million hours worked
astrazeneca annual report and form 20f information 2010 46 delivering our strategy responsible business
delivering our strategy  building capabilities
astrazeneca’s contribution to helping improve health in the 
developing world centres on our dedicated research of new and 
effective treatments for tuberculosis tb which still claims over 
5000 lives every day for further information about our research 
effort see the tuberculosis section on page 60 alongside this we 
continue to work in partnership to strengthen healthcare capabilities 
in vulnerable communities
in 2007 astrazeneca and the african medical and research 
foundation amref began a ﬁveyear partnership in uganda to 
develop an integrated model for the management of malaria hiv
aids and tb the leading causes of ill health and death in the country 
for further information on this project see page 49
astrazeneca and the british red cross have been in partnership 
since 2002 tackling tb and tbhiv in kyrgyzstan turkmenistan 
and kazakhstan and more recently in south africa lesotho and 
liberia over 13000 people have been directly supported to 
complete their tb treatment across all our partnership countries 
and tb mortality and morbidity rates continue to fall in our 
partnership countries in central asia community education 
initiatives continue to be delivered with a recent example in liberia 
of a housetohouse tb education programme which reached 
nearly 32000 people
our partnership with axios international on the ethiopia breast 
cancer project completed in 2010 with a much broader impact 
than originally anticipated for a small pilot project in 2005 the 
country had only one cancer specialist no mammography no easy 
access to chemotherapy or hormonal agents no cancer screening 
and no national treatment protocols our partnership programme 
focused on strengthening diagnosis and treatment capabilities at 
tikur anbessa university hospital in addis ababa where the 
country’s only cancer specialist was based the hospital has now 
become a centre of reference for breast cancer treatment across 
ethiopia other activities included the creation of treatment 
protocols and standardised reporting guidelines strengthening the 
referral system setting up an institutionalbased cancer registry 
raising awareness of the facilities among healthcare professionals 
and physician training the project was implemented in collaboration 
with the ethiopian ministry of health and other health institutions 
and we also worked with the ethiopian cancer association to help 
strengthen awareness and fundraising capabilities the pilot has 
created a sustainable model that can be successfully replicated in 
other countries and other disease areas and we are reviewing 
where else it might be applied
disaster relief
we continue to contribute to disaster relief efforts
as reported in our 2009 annual report in january 2010 following 
the earthquake in haiti we donated medicines and contributed 
500000 to the british red cross emergency appeal and a further 
100000 to support their ongoing work to provide shelter and 
sanitation for those people made homeless we also made a 
donation of 400000 to partners in health towards the building  
of a new teaching hospital
following the chilean earthquake in march 2010 we provided 
medicines to hospitals in need through the chile ministry of health 
we donated 100000 to teleton a major national chilean charity 
to support a recovery and rebuilding campaign and 75000 to  
the british red cross to provide relief resources and shelter across 
the population
following the ﬂoods in pakistan we donated 100000 to the british 
red cross emergency appeal as well as sending medicines we 
also continued to support the british red cross disaster response 
centre in kuala lumpur with a further 100000 this has enabled 
them to replenish vital stocks used in response to the pakistan 
ﬂoods and means they will be able to continue to respond quickly 
and efﬁciently to emergencies in the asia paciﬁc region
we are developing an enhanced protocol for working with the 
british red cross to ensure we are best placed to respond in a 
timely consistent and effective way to future emergencies as and 
when they arise
astrazeneca annual report and form 20f information 2010
business review additional information financial statements corporate governance overview
delivering our strategy responsible business 47  tb is the leading cause of death in people living with hiv 
together the two diseases are a deadly combination  
in uganda there is the added burden of malaria which 
causes more illness and death than any other single 
disease the diseases are linked but ugandans with  
tbhiv malaria and other conditions have to attend 
separate health services for treatment
our partnership with the african medical and research 
foundation amref is focused on developing a model 
for the integrated management of tb hivaids and 
malaria that provides a framework for effective and 
efﬁcient healthcare at local and national levels 
working in collaboration with the ugandan government  
in the districts of luwero and kiboga in central uganda 
the partnership has focused on increasing laboratory 
diagnostic capacity and improving communitybased 
healthcare management progress to date includes the 
completion and handover to local district management 
teams of four new laboratories and the establishment of 
328 village health teams with over 1300 people trained in 
health promotion in their local communities in addition a 
study of drug logistics management revealed signiﬁcant 
knowledge gaps and out of stock supply problems 
subsequently 108 health workers have been trained in 
drug logistics management to help prevent shortages 
  who is 
improving my 
healthcare
because health connects us all
for more information on our work with amref and other partnerships in 
the developing world go to our website astrazenecacomresponsibility which therapy 
areas do we  
focus on
we discover 
develop and 
commercialise 
medicines for six 
areas of healthcare 
 cardiovascular
 gastrointestinal
 infection
 neuroscience
 oncology
 respiratory  inﬂammation
sales by therapy area
2010 2009 2008
sales
m
reported
growth 

cer 
growth

sales
m
reported
growth 

cer 
growth

sales
m
cardiovascular 9403 12 11 8376 20 25 6963
gastrointestinal 6088 1 – 6011 5 2 6344
infection and other 2176 17 18 2631 7 10 2451
neuroscience 670477 6237 7 10 5837
oncology 4045 10 12 4518 9 7 4954
respiratory  inﬂammation 4099 1 1 4132 – 6 4128
other businesses 754 16 15 899 3 1 924
total 33269 1 – 32804 4 7 31601
50 therapy area review astrazeneca annual report and form 20f information 2010 this section contains further information about 
the therapy areas in which our efforts are 
focused cardiovascular gastrointestinal 
infection neuroscience oncology and 
respiratory  inﬂ ammation
we describe the business environment trends and other factors 
that have inﬂ uenced our decision to focus on diseases in these six 
areas our strategic objectives for each and our progress towards 
achieving these objectives we include information about our 
marketed medicines and how they are designed to make a 
meaningful difference for patients together with an overview of 
performance during the year we also report in detail on the 
potential new products and product lifecycle developments in 
our pipeline that reﬂ ect our commitment to maintaining a ﬂ ow of 
innovation that adds value for our shareholders and to society
for a list of all our potential new products and product lifecycle 
developments see the pipeline by therapy area at 27 january 2011 
table below and the development pipeline table from page 206 
for details of patent expiries of our key marketed products see the 
patent expiries section on page 31
many of our products are subject to litigation detailed information 
about material legal proceedings can be found in note 25 to the 
financial statements from page 178 details of relevant risks are set 
out in the principal risks and uncertainties section from page 96
pipeline by therapy area at 27 january 2011
cardiovascular
gastrointestinal
respiratory  
inﬂ ammation
phase i line 
extensions
phase iii 
registration
phase ii
 partnered product
 kombiglyze
tm
 xr in the us onglyza
tm
metformin ir fdc in the eu
 addition
 no change
 progression
 new ﬁ ling
 launched
 reclassiﬁ ed
infection
neuroscience
oncology
 azd6714 
 azd8329 
 azd7687 
 azd5658 
 azd4017 
 medi534 
 medi550 
 medi559 
 azd5847 
 azd9742 
 azd3241 
 azd3043

 
 medi578 
 azd5213 
  a z d 348 0

 
  a z d 6 76 5 
  a z d 2 0 6 6 
chronic neuropathic pain
  azd2066 mdd 
 nktr118

 
 tc5214

 
 tc5619

 
 azd1446

 
 azd2423 
 vimovo

 
 tc5214

 
 seroquel xr 
 diprivan

 
 emla

 
  a z d 9 7 7 3

 
   c a z 10 4

 
  m o t av i z u m a b

 
  c x l1 0 4

 
cef104
 medi3250 
  zinforo

 
ceftaroline
 flumistfluenz 
  nexium 
peptic ulcer bleeding
  nexium 
gerd
  a z d 1 6 5 6  brilintabrilique 
 dapagliﬂ ozin

 
  k o mbigly ze
tm
 xr  
onglyza
tm
metformin 
ir fdc


  d a p agli ﬂ ozin   
metformin fdc

  on g l y z a
tm
 savor

 
  brilinta  
pegasustimi 
 crestor elevated crp 
 axanum 
  v a ndet an ib 
zactima
 zibotentan 
 iressa 
 faslodex 
  f o s t amat inib

  oxis 
  symbicort  
copd
  symbicort 
smart 
 azd2461 
 azd3514 
 azd7762 
  a z d 8330

 
arry424704
 cat8015 
 azd1981 
 medi528

 
 cat354 
 azd3199 
 medi563

 
 medi545

 azd8848 
 cam3001

 
 azd2423 
 azd8683 
 azd5423 
 azd5069 
 recentin 
  s e lume t inib

 
azd6244 
arry142886
 olaparib 
 azd1152 
 azd8931 
 medi575

 
 azd9819 
 medi546

 
 medi551 
 medi570

 
 medi557 
  s e lum e t inib 
azd6244  
arry142886
mk2206

 medi3617 
 azd5363 
 medi565 
 medi551 
 azd8055 
 medi573

 
 azd1480 
 azd4547 
 azd2014 
key movements since 27 january 2010
astrazeneca annual report and form 20f information 2010
additional information financial statements corporate governance overview business review
therapy area review
therapy area review 51 cardiovascular
in brief
  crestor sales up 24 to 57 billion
  new indications were approved for crestor in the us and the 
eu based on data from the landmark jupiter clinical trial
  in june the us district court for the district of delaware decided 
in astrazeneca’s favour the consolidated anda infringement case 
involving eight anda ﬁlers seeking approvals for generic crestor 
the defendants have appealed the court’s judgment and decision 
of our patent’s infringement validity and enforceability to the us 
court of appeals for the federal circuit 
  in september we received a paragraph iv certiﬁcation noticeletter 
from watson laboratories inc watson informing us of its ﬁling of 
a 505b2 nda for rosuvastatin zinc tablets and challenging the 
substance and formulation patents protecting crestor we 
commenced a patent infringement action against watson in 
october in the us district court for the district of delaware
  torrent do brasil launched its generic versions of crestor in october 
astrazeneca was granted an injunction ordering torrent do brasil to 
discontinue the sale and marketing of these generic products and 
recall products already on the market this injunction has subsequently 
been suspended and the matter is now awaiting the decision of the 
court of appeal which is expected in the ﬁrst quarter of 201 1
  atacand sales up 3 to 15 billion
  toprolxl us sales down 29 as a result of increased 
generic competition
  in december the european commission granted a marketing 
authorisation for brilique ticagrelor tablets for the prevention of 
atherothrombotic events in adult patients with acute coronary 
syndromes the decision is applicable to the 27 member states 
and the three european economic area countries of the eu in the 
same month the fda issued a complete response letter for the 
brilinta ticagrelor nda astrazeneca announced that it had replied 
to the complete response letter on 21 january 2011 
  in december astrazeneca notiﬁed abbott that it would discontinue 
development of certriad a ﬁxed dose combination of the active 
ingredient in crestor rosuvastatin calcium and abbott’s trilipix™ 
fenoﬁbric acid which was being codeveloped with abbott for the 
treatment of mixed dyslipidemia 
  in may astrazeneca received a complete response letter from 
the fda for the nda for axanum a single capsule of lowdose 
acetylsalicylic acid asa and esomeprazole in june astrazeneca 
ﬁled an maa for axanum in several countries in the eu for 
prevention of cardio and cerebrovascular events in patients 
requiring continuous lowdose asa treatment who are at risk of 
developing asa associated gastric andor duodenal ulcers
  in november astrazeneca and bms received fda approval for 
kombiglyze™ xr a ﬁxeddose combination of onglyza™ plus 
metformin hydrochloride extendedrelease tablets 
  in december astrazeneca and bms ﬁled regulatory submissions 
in the us and the eu seeking approval for dapagliﬂozin a ﬁrstin
class sodiumglucose cotransporter2 inhibitor as a oncedaily oral 
therapy for the treatment of adult patients with type 2 diabetes
our marketed products
  crestor
1
 rosuvastatin calcium is a statin used for the treatment of 
dyslipidaemia and hypercholesterolemia in some markets it is also 
indicated to slow the progression of atherosclerosis and to reduce 
the risk of ﬁrst cardiovascular cv events
  atacand
2
 candesartan cilexetil is an angiotensin ii antagonist 
used for the 1st line treatment of hypertension and symptomatic 
heart failure
  selokentoprolxl metoprolol succinate is a betablocker 
oncedaily tablet used for 24hour control of hypertension and for 
use in heart failure and angina
  tenormin atenolol is a cardioselective betablocker used for 
hypertension angina pectoris and other cv disorders
  zestril
3
 lisinopril dihydrate is an angiotensinconverting enzyme 
inhibitor used for the treatment of a wide range of cv diseases 
including hypertension
  plendil felodipine is a calcium antagonist used for the treatment 
of hypertension and angina
  onglyza
™4
 saxagliptin is a dipeptidyl peptidase iv inhibitor used 
for the treatment of type 2 diabetes
1
 licensed from shionogi  co ltd
2
 licensed from takeda chemicals industries ltd 
3
 licensed from merck
4
 codeveloped and cocommercialised with bms
  
therapy area world market 
matq310 bn
market sectors
 high blood pressure  
 abnormal levels of blood
 cholesterol  
 diabetes  
 thrombosis  
 other  
522
239
246
322
369
170bn
cardiovascular is the single largest therapy area in the global 
healthcare market worldwide market value of 170 billion
astrazeneca annual report and form 20f information 2010 52 therapy area review cardiovascular
therapy area review our strategic objectives
astrazeneca is one of the world leaders in cardiovascular cv 
medicines we aim to build on our strong position focusing on  
the growth areas of atherosclerosis hardening of the arteries 
thrombosis blood clotting diabetes and atrial ﬁbrillation cardiac 
arrhythmia despite improvements in the quality of diagnosis and 
treatment the unmet medical needs remain high and these disease 
areas and their complications continue to grow worldwide both in 
developed and emerging markets as a consequence of the spread 
of a westernised lifestyle resulting in signiﬁcant healthcare spend 
and recognised societal consequences
cardiovascular diseases
hypertension high blood pressure and dyslipidaemia abnormal 
levels of blood cholesterol damage the arterial wall which may lead 
to atherosclerosis cv events driven by atherosclerotic disease 
remain the leading cause of death in the western world lipid
modifying therapy primarily statins is a cornerstone for the 
treatment of atherosclerosis
acute coronary syndromes acs is an umbrella term for sudden 
chest pain and other symptoms due to insufﬁcient blood supply 
ischaemia to the heart muscle acs is the acute culmination of 
ischemic heart disease the leading cause of death worldwide 
who 2008 there remains a signiﬁcant need to improve outcomes 
and reduce the costs of treating acs
our focus
our key marketed products
since its launch in 2003 crestor has continued to gain market 
share based on its differentiated proﬁle in managing cholesterol 
levels and its more recent label indications for slowing the 
progression of atherosclerosis and reducing the risk of cv events  
in some markets crestor is the only statin with an atherosclerosis 
indication in the us which is not limited by disease severity or 
restricted to patients with coronary heart disease
fewer than half of the people thought to have high levels of 
lowdensity lipoprotein cholesterol ldl c ‘bad cholesterol’ are 
diagnosed and treated of treated patients only about half reach 
their doctor’s recommended cholesterol targets using existing 
treatments study data has shown that the usual 10mg starting 
dose of crestor is more effective at lowering ldl c and produces 
greater achievement of ldl c goals than commonly prescribed 
doses of other statins crestor also produces an increase in 
highdensity lipoprotein cholesterol hdl c ‘good cholesterol’ 
across the dose range
in february 2010 the fda approved crestor to reduce the risk 
of stroke myocardial infarction heart attack and arterial 
revascularisation procedures in individuals without clinically evident 
coronary heart disease but with an increased risk of cardiovascular 
disease cvd based on age men ≥50 and women ≥60 high
sensitivity creactive protein ≥2mgl and the presence of at least 
one additional cvd risk factor such as hypertension low hdl c 
smoking or a family history of premature coronary heart disease 
this approval was based on data from the landmark jupiter  
study which evaluated the impact of crestor 20mg on reducing 
major cv events
crestor also received approval from 19 countries within the eu for 
the prevention of major cv events in patients who are at high risk  
of having a ﬁrst cv event this new indication was also based on 
subgroup data from the jupiter study a post hoc analysis of this 
subgroup data showed a signiﬁcant reduction in the combined 
endpoint of heart attacks strokes and cv deaths among the high 
risk patients who participated in the jupiter study
atacand continues to be an important treatment option for 
patients with hypertension and symptomatic heart failure atacand 
is approved for the treatment of hypertension in over 105 countries 
and for symptomatic heart failure in more than 70 countries  
most patients with hypertension fail to reach their treatment  
goals with the use of a single antihypertensive treatment and 
ﬁxeddose combinations of two or more antihypertensives  
are commonly prescribed for patients to improve efﬁcacy and 
attainment of treatment goals atacand plus candesartan cilexetil
hydrochlorothiazide is a ﬁxeddose combination of atacand and 
the diuretic hydrochlorothiazide indicated for the treatment of 
hypertension in patients who require more than one anti
hypertensive therapy atacand plus is approved in 88 countries
our ﬁnancial performance
world us western europe established row emerging markets prior year
 
 
2010
sales
m
reported
growth 

cer
growth 

sales
m
reported
growth 

sales
m
reported
growth 

cer 
growth 

sales
m
reported
growth 

cer 
growth 

sales
m
reported
growth 

cer 
growth 

world 
sales 
m
crestor 5691 26 24 2640 26 1111 15 20 1332 37 25 608 31 26 4502
atacand 1483 3 3 216 18 736 – 4 224 21 8 307 21 17 1436
seloken
toprolxl 1210 16 17 689 29 91 11 9 39 7 14 391 17 13 1443
tenormin 276 7 9 13 13 61 13 9 127 5 10 75 4 8 296
plendil 255 6 4 15 7 27 34 32 14 8 – 199 15 13 241
zestril 157 15 14 10 44 81 23 19 17 11 21 49 17 14 184
onglyza
™
69 nm nm 54 nm 10 nm nm 2 nm nm 3 nm nm 11
others 262 – 1 15 25 113 14 11 26 7 14 108 29 25 263
total 9403 12 11 3652 7 2230 4 8 1781 28 16 1740 22 18 8376
2009
crestor 4502 25 29 2100 25 968 16 24 970 40 44 464 18 32 3597
atacand 1436 2 5 263 – 734 4 2 185 2 8 254 1 13 1471
seloken
toprolxl 1443 79 84 964 227 102 25 18 42 13 8 335 2 11 807
tenormin 296 5 5 15 17 70 11 6 133 5 6 78 12 – 313
plendil 241 10 7 14 44 41 29 24 13 35 30 173 5 7 268
zestril 184 22 17 18 10 105 27 22 19 21 21 42 14 4 236
onglyza
™
11 nm nm 11 nm ––– ––– ––– –
others 263 3 3 20 nm 131 13 6 28 7 10 84 7 2 271
total 8376 20 25 3405 48 2151 1 6 1390 23 26 1430 4 15 6963
astrazeneca annual report and form 20f information 2010
additional information financial statements corporate governance overview business review
therapy area review cardiovascular 53 clinical studies of our key marketed products
galaxy our longterm global clinical research programme for 
crestor which investigates links between optimal lipid control 
atherosclerosis and cv morbidity and mortality has completed  
a number of studies involving over 65000 patients in over 55 
countries some of the studies undertaken as part of the  
galaxy programme are referred to below
the pluto study evaluated the efﬁcacy and safety of crestor 
in patients 10 to 17 years of age with heterozygous familial 
hypercholesterolemia completion of the pluto study fulﬁlled our 
paediatric exclusivity requirements in the us and resulted in an 
additional sixmonth period of exclusivity to market crestor in the 
us being granted in july 2009 a paediatric indication was also 
granted in the eu in march 2010
the saturn study is ongoing and is designed to measure the 
impact of crestor 40mg and atorvastatin lipitor™ 80mg on the 
progression of atherosclerosis in highrisk patients we expect to 
report the results of this study in the fourth quarter of 2011
the planets i and ii studies which evaluated the effects of 
crestor 10mg crestor 40mg and atorvastatin lipitor™ 80mg on 
urinary protein excretion in patients with proteinuric renal disease  
in diabetics and nondiabetics respectively have been completed 
and publication is progressing with initial data from the planets 
studies being reported in may
in the pipeline
brilintabrilique ticagrelor is an oral antiplatelet treatment for 
acs ticagrelor is a directacting p2y12 receptor antagonist in  
a chemical class called cyclopentyltriazolopyrimidines and is  
the ﬁrst reversiblybinding oral adenosine diphosphate adp 
receptor antagonist
results from the phase iii study plato were announced in august 
2009 with 18624 randomised patients at 864 sites in 43 countries 
plato ranks as one of astrazeneca’s largest clinical trials ever it 
was designed to reﬂect current medical practice by randomising 
patients within 24 hours of the index event and following them 
whether they were medically managed or underwent invasive 
procedures plato compared ticagrelor to clopidogrel plavix™
iscover™ the overall plato results demonstrated the superiority 
of ticagrelor versus clopidogrel in reducing heart attacks and cv 
death in patients with acs treated for 12 months the study 
provided the basis for regulatory ﬁlings worldwide
in december the european commission granted marketing 
authorisation to brilique ticagrelor tablets for the prevention of 
atherothrombotic events in adult patients with acs the decision  
is applicable to the 27 member states and the three european 
economic area countries of the eu 
in the same month the fda issued a complete response letter  
for the brilinta ticagrelor nda in the complete response letter 
the fda requested further analyses of the plato data the agency 
did not request that additional studies including clinical studies  
be conducted as a prerequisite for approval of the ticagrelor nda 
astrazeneca announced that it had replied to the complete 
response letter on 21 january 2011 the fda is in the process  
of reviewing astrazeneca’s response to determine whether the 
information submitted is complete and whether to designate the 
review as class 1 which would start a twomonth review cycle  
or as class 2 which would start a sixmonth review
brilinta remains under regulatory review in 21 countries including 
the us it has been approved in 30 countries including in the eu 
iceland and norway under the trade name brilique and in brazil 
under the trade name brilinta additional marketing authorisations 
and regulatory submissions are planned for 2011 
in october astrazeneca initiated pegasus timi54 a 21000 
patient study in over 30 countries the study examines the ability  
of ticagrelor plus aspirin to prevent adverse cv events safely 
compared to aspirin alone in higherrisk patients one to three years 
after a heart attack enrolment for pegasus began in december
axanum is a single capsule of lowdose acetylsalicylic acid asa 
and esomeprazole the active ingredient in nexium lowdose 
asa is a mainstay of therapy for patients at high risk of having a cv 
event such as a heart attack or stroke upper gastrointestinal gi 
problems including ulcers and ulcerrelated complications are the 
most common reason for discontinuation of lowdose asa therapy 
up to 30 of patients with upper gi problems discontinue or take 
deliberate breaks from their lowdose asa treatment placing them 
at risk of a potentially lifethreatening cv event as early as eight to 
10 days after discontinuation astrazeneca ﬁled an maa for 
axanum in june for prevention of cardio and cerebrovascular 
events in patients requiring continuous lowdose asa treatment 
who are at risk of developing asa associated gastric andor 
duodenal ulcers in several countries in the eu the submission  
was based on the results of the oberon and asterix studies 
evaluating the efﬁcacy and safety of nexium in reducing the risk 
of gastric andor duodenal ulcers in patients taking continuous 
lowdose asa
in may astrazeneca received a complete response letter from  
the fda for the nda for axanum the complete response letter is 
currently being evaluated and astrazeneca will continue discussions 
with the fda to determine the next steps with respect to the 
axanum nda
in march 2010 astrazeneca and abbott received a complete 
response letter based on the certriad nda submission made 
in june 2009 in december astrazeneca notiﬁed abbott that it 
would discontinue development of certriad which was being 
codeveloped with abbott for the treatment of mixed dyslipidemia 
this decision was reached after careful review and consideration  
of the complete response letter and the ongoing delay in the 
regulatory review of the certriad nda which made continuing 
the development of certriad commercially unattractive the 
codevelopment and licence agreement with abbott subsequently 
ended in january 2011
diabetes
the number of people affected by type 2 diabetes continues to 
grow predominantly as a result of obesity type 2 diabetes is a 
chronic progressive disease and patients often require multiple 
medications to control their condition there are a number of 
established oral generic and branded classes such as biguanides 
and sulfonylureas however newer classes such as oral dipeptidyl 
peptidase iv dppiv inhibitors are successfully entering the market 
by offering effective blood sugar control and improved tolerability 
several new classes of drugs are in development in this area 
including sodiumglucose cotransporter2 inhibitors sglt2 cv 
safety has been given particular emphasis in recent regulatory 
reviews and guidance documents provided by the fda and other 
regulatory authorities
our focus
our key marketed products
the collaboration on a worldwide basis
1
 between astrazeneca and 
bms to develop and commercialise two compounds discovered by 
bms onglyza™ saxagliptin and dapagliﬂozin for the treatment of 
type 2 diabetes continues to make good progress
since its ﬁrst approval in the us in july 2009 onglyza™ has been 
approved in 48 countries and launched in 34 the maa for a 
ﬁxeddose combination of onglyza™ and metformin immediate 
release tablets as a treatment for adults with type 2 diabetes 
remains under review by the ema
1
the collaboration for saxagliptin excludes japan
astrazeneca annual report and form 20f information 2010 54 therapy area review cardiovascular
therapy area review in november astrazeneca and bms received fda approval for 
kombiglyze™ xr a ﬁxeddose combination of onglyza™ plus 
metformin hydrochloride extendedrelease tablets kombiglyze™ xr 
is the ﬁrst and only onceaday metformin extended release plus 
dppiv inhibitor combination tablet providing strong comprehensive 
glycaemic control across glycosylated haemoglobin levels hba1c 
fasting plasma glucose and postprandial glucose full commercial 
launch is anticipated to take place in the ﬁrst quarter of 2011
in the pipeline
dapagliﬂozin an investigational compound is a potential ﬁrstin
class sglt2 inhibitor under joint development with bms as a 
oncedaily oral therapy for the treatment of adult patients with type 
2 diabetes our extensive global phase iii programme evaluated 
dapagliﬂozin as initial therapy and as an addon to other widely 
used antidiabetic treatments reported data from ﬁve pivotal phase 
iii studies now in the public domain suggest a product proﬁle that  
is encouraging consistent and with differentiated patient beneﬁts 
including the potential to be the ﬁrst oral agent to provide hba1c 
reduction along with secondary beneﬁts of weight loss and a 
reduction in blood pressure in the phase iii studies genital 
infections and urinary tract infections were generally higher in the 
dapagliﬂozin group but mild or moderate in nature responded to an 
initial course of standard treatment and rarely led to discontinuation
in december astrazeneca and bms ﬁled an nda and an maa with 
the fda and the ema for dapagliﬂozin as a oncedaily oral therapy 
for the treatment of adult patients with type 2 diabetes
our activities in the glucokinase activator gka area continued 
during 2010 and phase ii studies for azd1656 are ongoing the 
gka mechanism of action is believed to induce insulin release  
from the pancreas and reduce glucose output from the liver 
resulting in marked reductions in blood glucose in hyperglycaemic 
type 2 diabetics during 2010 we also progressed our azd8329 
and azd7687 projects in early clinical testing these potential 
medicines aim to increase insulin sensitivity and thereby induce 
better glycaemic control with beneﬁcial effects on body weight  
and blood lipids
atrial ﬁbrillation
atrial ﬁbrillation af is the most common cardiac arrhythmia 
rhythmcontrol therapy to manage the symptoms of af is 
dominated by generic amiodarone which is effective at maintaining 
patients in normal heart rhythm but very poorly tolerated af is 
associated with an increased risk of cerebral embolism resulting  
in stroke and disability to reduce the risk of such afrelated 
complications anticoagulation with vitamin k antagonists can be 
used new anticoagulation therapies with improved convenience 
are emerging
in the pipeline
for the control of heart rhythm in af our focus is on atrialspeciﬁc 
agents as a way to reduce the risk of proarrhythmic effects our 
activities in this area are in preclinical development 
development of azd0837  a direct thrombin inhibitor that was in 
phase ii testing for the prevention of strokes and other embolic 
events in af patients has been discontinued
financial performance 20102009
performance 2010
reported performance
cv sales grew by 12 to 9403 million in 2010 from 8376 million 
in 2009 driven by the continuing growth in crestor 
performance – cer growth rates
cv sales were up 11
global sales of crestor were up 24 us sales for crestor 
increased by 26 to 2640 million crestor sales outside the us 
were up 23 to 3051 million with sales in established row up 
25 including good growth in canada 25 japan 25 and 
other established row 23 sales in western europe were up 
20 driven by good growth in france italy and spain sales in 
emerging markets were up 26
sales of selokentoprolxl decreased 17 us sales of the 
toprolxl product range which includes sales of the authorised 
generic decreased by 29 to 689 million as a result of further 
generic competition although this was partially offset by 13 
growth in emerging markets to 391 million
atacand sales were up 3 despite us sales being down 18 as 
a result of strong growth in established row 8 and emerging 
markets 17
alliance revenue from the onglyza™ collaboration with bms  
totalled 69 million comprising 54 million in the us and 15 million 
in other markets
performance 2009
reported performance
cv sales were up 20 to 8376 million 2008 6963 million 
strong growth from crestor driven by the promotion of the 
atherosclerosis indication and substantially increased sales of 
toprolxl and the authorised generic version of the drug in the 
us were the major contributors to growth in cv sales
performance – cer growth rates
cv sales were up 25 from 2008
crestor sales increased by 29 to 4502 million us sales for 
crestor increased by 25 to 2100 million the total prescription 
share of crestor in the us statin market increased to 113 in 
december 2009 from 99 in december 2008 and it was the only 
branded statin to gain market share crestor sales outside the us 
were up 33 to 2402 million over half of global sales for the 
product sales of crestor were up 24 in our western europe 
markets to 968 million and sales growth in established row 
markets up 44 in total sales of crestor in emerging markets 
increased by 32
sales of selokentoprolxl and its authorised generic increased 
by 84 to 1443 million in 2009 as a result of increased sales  
of toprolxl and its authorised generic in the us sales in the us 
increased by 227 to 964 million following the withdrawal from  
the market of two other generic metoprolol succinate products in 
early 2009
sales of atacand in the us were unchanged from 2008 at 
263 million and accounted for 18 of global atacand sales 
atacand sales were up 13 in emerging markets
alliance revenue from the onglyza™ collaboration with bms totalled 
11 million in 2009
astrazeneca annual report and form 20f information 2010
additional information financial statements corporate governance overview business review
therapy area review cardiovascular 55 gastrointestinal
38bn
the gastrointestinal market is valued at 38 billion with the 
proton pump inhibitor market accounting for 24 billion
in brief
  sales of nexium 5 billion unchanged from the previous year
  losecprilosec sales up 1 to 986 million
   in february 2010 astrazeneca submitted nexium for approval 
in japan the only major market yet to launch and in october  
we entered into an agreement with daiichi sankyo for the  
copromotion and supply of nexium in japan
  astrazeneca received a complete response letter from the fda  
in may for the snda for nexium for the risk reduction of lowdose 
aspirinassociated peptic ulcers
  in october astrazeneca ﬁled requests for preliminary injunctions to 
restrain six companies from marketing and selling generic forms of 
nexium in germany the court rejected the requests in december 
the decision has not yet been published astrazeneca has four 
weeks from the date of publication of the decision to determine 
whether or not it will appeal the decision
  in january 2010 astrazeneca entered into an agreement with  
teva pharmaceutical industries ltd and afﬁliates teva to settle 
patent litigation regarding teva’s anda submission for a generic 
version of nexium delayedrelease capsules under the agreement 
astrazeneca has granted teva a licence for its anda product  
to enter the us market subject to regulatory approval on  
27 may 2014
  in june the federal court of canada dismissed astrazeneca’s 
request to prohibit the canadian minister of health from issuing a 
notice of compliance for the regulatory applications for generic 
esomeprazole magnesium submitted by apotex inc apotex in 
october astrazeneca commenced a patent infringement action 
against apotex alleging infringement of ﬁve canadian patents 
related to nexium
  in january 2011 astrazeneca entered into a settlement agreement 
with dr reddy’s laboratories ltd and dr reddy’s laboratories 
inc together drl regarding drl ’s anda submission for a generic 
version of nexium delayedrelease capsules under the agreement 
astrazeneca has granted drl a licence for its anda product  
to enter the us market subject to regulatory approval on  
27 may 2014
  thirteen third parties have opposed the grant of a european patent 
covering nexium which is due to remain in force until 2014 the 
patent includes claims to nexium of very high optical purity and 
has been asserted by astrazeneca in litigation against generic 
companies in europe while the european patent ofﬁce has not  
yet set a date for the oppositions to be heard a hearing could 
occur in the ﬁrst half of 2011
our marketed products
  nexium esomeprazole is the ﬁrst proton pump inhibitor ppi 
used for the treatment of acidrelated diseases to offer clinical 
improvements over other ppis and other treatments
  losecprilosec omeprazole is used for the shortterm and 
longterm treatment of acidrelated diseases
  entocort budesonide is a locally acting corticosteroid used 
for the treatment of inﬂammatory bowel disease
therapy area world market 
matq310 bn
market sectors
 ppi  
 other 
240
142
astrazeneca annual report and form 20f information 2010 56 therapy area review gastrointestinal
therapy area review our strategic objectives
we aim to develop our position in gastrointestinal gi treatments  
by continuing to focus on our existing proton pump inhibitors
our focus
our key marketed products
nexium is marketed in approximately 120 countries and is available 
in oral tabletcapsules and oral suspension and intravenous iv 
dosage forms for the treatment of acidrelated diseases nexium 
is an effective shortterm and longterm therapy for patients with 
gastrooesophageal reﬂux disease gerd nexium is also 
approved for the treatment of gerd in children one to 17 years  
of age in the eu and other markets nexium is approved for the 
healing and prevention of ulcers associated with nsaid therapy 
including cyclooxygenase 2 selective inhibitors in the us nexium 
is approved for reducing the risk of gastric ulcers associated with 
continuous nsaid therapy in patients at risk of developing gastric 
ulcers nexium is also approved in the us the eu canada and 
australia for the treatment of patients with the rare gastric disorder 
zollingerellison syndrome following treatment with nexium iv 
oral nexium is approved in the eu and other markets for the 
maintenance of haemostasis and prevention of rebleeding of 
gastric or duodenal ulcers
nexium iv is used when oral administration is not suitable for the 
treatment of gerd and upper gi side effects induced by nsaids  
it is approved in the eu and other markets for the shortterm 
maintenance of haemostasis and prevention of rebleeding in 
patients following therapeutic endoscopy for acute bleeding gastric 
or duodenal ulcers nexium iv has been submitted to the ema and 
the fda for use in children one to 17 years of age inclusive and  
their review is ongoing
in may astrazeneca received a complete response letter for  
the snda for nexium which was submitted for the risk reduction 
of lowdose aspirinassociated peptic ulcers astrazeneca is 
currently evaluating the complete response letter and will  
continue discussions with the fda to determine the next steps  
with respect to the nexium snda
losecprilosec was ﬁrst launched in 1988 and is approved for the 
treatment of gerd we continue to maintain certain patent property 
covering losecprilosec losecprilosec is available both as a 
prescriptiononly medication and in some countries as an otc 
medication where it offers consumers a more effective self
medication option for the treatment of heartburn compared with 
antacids and h2 receptor antagonists
clinical studies of key marketed products
the japanese new drug application for nexium was submitted 
in february 2010 and the regulatory review process is ongoing  
in october astrazeneca entered into an agreement with daiichi 
sankyo for the copromotion and supply of nexium in japan under 
the terms of the agreement astrazeneca and daiichi sankyo will 
copromote the product after it has been approved for use in 
japan astrazeneca will manufacture and develop the product and 
daiichi sankyo will be responsible for its distribution daiichi sankyo 
has made an initial payment of 100 million to astrazeneca and will 
pay further sums when the product is approved and sales target 
milestones are achieved
in the pipeline
our research activities have focused on reﬂux inhibitors and 
hypersensitivity therapy our lead compound lesogaberan 
azd3355 was terminated because of doseﬁnding data showing 
insufﬁcient efﬁcacy to deliver a meaningful clinical improvement in 
the study population for which the treatment was intended based 
on the ﬁndings in the lesogaberan programme our discovery and 
development activities in the gerd area that are based on reﬂux 
inhibition will be terminated
financial performance 20102009
performance 2010
reported performance
gi sales grew by 1 to 6088 million in 2010 from 6011 million  
in 2009
performance – cer growth rates
global gi sales were unchanged this was due to nexium sales 
being unchanged from 2009 at 4969 million and losecprilosec 
sales showing a small increase of 1 to 986 million nexium sales 
in the us were down 5 to 2695 million although this was offset 
by sales outside the us which were up 6 to 2274 million
performance 2009
reported performance
gi sales for 2009 were down 5 to 6011 million from  
6344 million in 2008
performance – cer growth rates
gi sales fell by 2
global nexium sales were down 1 to 4959 million from 5200 
million the previous year the decline was driven by the decrease in 
the us of 9 to 2835 million however this was largely mitigated 
by sales outside the us increasing by 9 to 2124 million in the 
us dispensed retail tablet volumes decreased by less than 1 
despite increased generic and otc competition in respect of 
nexium there was growth in established row 10 western 
europe 7 and emerging markets 15
sales of losecprilosec fell 10 to 946 million prilosec sales in 
the us were down 63 as a result of continued generic erosion 
outside the us losec sales were unchanged
our ﬁnancial performance
world us western europe established row emerging markets prior year
 
 
2010
sales
m
reported
growth 

cer 
growth 

sales
m
reported
growth

sales
m
reported
growth

cer 
growth

sales
m
reported
growth

cer
growth

sales
m
reported
growth

cer
growth 

world
sales
m
nexium 4969 – – 2695 5 1202 2 2 453 17 4 619 21 18 4959
losecprilosec 986 4 1 47 28 253 3 2 437 6 1 249 19 16 946
others 133 25 26 76 49 45 – 2 6 – 17 6 50 75 106
total 6088 1 – 2818 4 1500 2 1 896 12 1 874 20 17 6011
2009
nexium 4959 5 1 2835 9 1225 1 7 386 – 10 513 7 15 5200
losecprilosec 946 10 10 64 63 261 12 3 411 6 1 210 3 6 1055
others 106 19 24 51 55 45 2 4 6–– 4– 25 89
total 6011 5 2 2950 11 1531 3 5 803 3 4 727 6 13 6344
astrazeneca annual report and form 20f information 2010
additional information financial statements corporate governance overview business review
therapy area review gastrointestinal 57 infection
82bn
the world infection market is valued at 82 billion with 
antibacterials accounting for approximately 46 antivirals 
for 29 and vaccines 13
in brief
  synagis sales of 1 billion in the us 646 million down 17
  merremmeronem sales of 817 million down 7
  flumist sales of 174 million up 20
  in december the biological license application submitted to the 
fda relating to motavizumab was withdrawn and astrazeneca 
recorded a ﬁnancial impairment charge of 445 million
  zinforo ceftaroline was submitted for marketing approval in the 
eu in december for the treatment of complicated skin and soft 
tissue infections as well as for community acquired pneumonia
  initiation of phase iib study with azd9773 formerly known as 
cytofab™
our marketed products
  synagis palivizumab is a humanised mab used for the prevention 
of serious lower respiratory tract disease caused by respiratory 
syncytial virus rsv in paediatric patients at high risk of acquiring 
rsv disease
  merremmeronem
1
 meropenem is a carbapenem antibacterial 
used for the treatment of serious infections in hospitalised patients
  flumistfluenz inﬂuenza vaccine live intranasal is an intranasal 
live attenuated trivalent inﬂuenza vaccine
  cubicin
™2
 daptomycin is a cyclic lipopeptide antibacterial used 
for the treatment of serious infections in hospitalised patients
1
 licensed from dainippon sumitomo
2
 licensed from cubist pharmaceuticals inc
therapy area review
therapy area world market 
matq310 bn
market sectors
 antibacterials  
 antivirals 
 vaccines 
 others  
374
104
237
107
astrazeneca annual report and form 20f information 2010 58 therapy area review infection our strategic objectives
we aim to build a leading franchise in the treatment of infectious 
diseases through continued commercialisation of brands such as 
synagis merremmeronem flumistfluenz and cubicin™ as well 
as through the development of products in the pipeline such as 
zinforo ceftaroline we also aim to make effective use of our 
structural and genomicbased discovery technologies and antibody 
platforms vaccines and continued research into novel approaches 
in areas of unmet medical need
resistant bacterial infections
world demand for antibiotics remains high and will continue to  
grow due to escalating resistance and the increased risk of  
serious infections in both immunosuppressed patients and  
ageing populations many bacterial infections currently have few 
satisfactory treatment options prompting demand for new and 
better therapies
our focus
our key marketed products
merremmeronem remains the leading carbapenem antibacterial 
across astrazeneca licensed territories maintaining over a 7 
share of the global intravenous antibiotic market by value despite 
experiencing loss of market exclusivity in the us in june generic 
growth across the carbapenem class is anticipated over the next  
12 months following the patent expiries for merremmeronem in 
europe and the us
cubicin™ is used for the treatment of serious grampositive 
infections in hospitalised patients and is sold by astrazeneca in 
selected territories in asia europe and the middle east
in the pipeline
zinforo ceftaroline is a novel injectable cephalosporin with the 
potential to provide coverage against grampositive organisms and 
commonly susceptible gramnegative organisms associated with 
communityacquired bacterial pneumonia cabp and complicated 
skin and soft tissue infections in particular ceftaroline is active 
against methicillinresistant staphylococcus aureus mrsa 
ceftaroline is being developed in collaboration with forest and it 
received fda approval for ceftaroline in october for the treatment of 
acute bacterial skin and skin structure infections and cabp caused 
by designated susceptible bacteria forest will use the brand name 
teﬂaro™ ceftaroline in the us astrazeneca is responsible for 
registration and marketing outside the us canada and japan and 
ﬁled an maa for the 27 member states of the eu in december we 
expect to make further submissions in other jurisdictions during 2011
in the ﬁrst half of 2010 we completed the acquisition of novexel  
and we are working with our partner forest on future joint global 
development programmes including caz104 a combination of 
ceftazidime and nxl 104 caz104 is currently in phase ii evaluation 
for the treatment of complicated intraabdominal infection and 
complicated urinary tract infection and a decision whether to 
proceed into phase iii will be taken during 2011 
to meet the high and growing need for new and better therapies  
for resistant bacterial infections we have built an antibacterials 
discovery capability which will ensure that astrazeneca has the 
resource to create novel mechanism antibacterials out of this 
work a candidate antibacterial drug azd9742 with a novel 
mechanism of action completed phase i testing late in 2010 and 
phase ii plans are under evaluation a second candidate anti
bacterial drug azd5099 is expected to enter phase i in the ﬁrst  
half of 2011
respiratory syncytial virus
approximately half of all infants are infected with respiratory 
syncytial virus rsv during the ﬁrst year of life and nearly all children 
in the us have been infected by the time they reach their second 
birthday premature babies earlier than 36 weeks gestational age 
especially those less than 32 weeks and babies with chronic lung 
disease or congenital heart disease are at increased risk of 
contracting severe rsv disease than fullterm healthy babies
our focus
our key marketed products
synagis is used for the prevention of serious lower respiratory tract 
disease caused by rsv in children at high risk of the disease it was 
the ﬁrst mab approved in the us for an infectious disease and has 
become the standard of care for rsv prevention synagis remains 
the only immunoprophylaxis in the marketplace indicated for the 
prevention of rsv in paediatric patients at high risk of rsv synagis 
is administered by intramuscular injection
in the pipeline
motavizumab is an investigational mab that was being considered 
to help prevent rsv disease in december we discontinued further 
development of motavizumab for the prophylaxis of serious rsv 
disease and requested the withdrawal of the biological license 
application bla which was pending at the fda as a result of this 
decision astrazeneca incurred a ﬁnancial impairment charge of 
445 million although we have discontinued certain motavizumab 
development paths and withdrawn the prophylaxis bla from the 
fda motavizumab remains in development for rsv treatment
our ﬁnancial performance
world us western europe established row emerging markets prior year
 
 
2010
sales
m
reported
growth

cer
growth

sales
m
reported
growth

sales
m
reported
growth

cer
growth

sales
m
reported
growth

cer
growth

sales
m
reported
growth 

cer
growth

world
sales
m
synagis 1038 4 4 646 17 392 31 31 ––– ––– 1082
merrem 817 6 7 127 28 328 9 7 57 10 4 305 8 4 872
flumist 174 20 20 173 19 ––– ––– 1–– 145
non seasonal 
flu 39 90 90 39 90 ––– ––– ––– 389
others 108 24 25 68 16 – 100 93 20 5 43 20 54 92 143
total 2176 17 18 1053 33 72046 775 15 326 118 2631
2009
synagis 1082 12 12 782 15 300 2 2 – – – – – – 1230
merrem 872 3 5 177 14 361 5 13 52 8 19 282 5 6 897
flumist 145 39 39 145 39 ––– ––– ––– 104
non seasonal 
flu 389 nm nm 389 nm ––– ––– ––– –
others 143 35 31 82 29 27 61 55 19 19 31 15 25 15 220
total 2631 7 10 1575 17 688 5 – 71 11 22 297 6 5 2451
astrazeneca annual report and form 20f information 2010
additional information financial statements corporate governance overview business review
therapy area review infection 59 we are developing a live intranasal vaccine for the prevention of 
lower respiratory tract illness caused by rsv in otherwise healthy 
infants two vaccine candidates are in clinical development 
medi559 and medi534
inﬂuenza virus
inﬂuenza is the most common vaccinepreventable disease in the 
developed world according to who estimates seasonal inﬂuenza 
results in three to ﬁve million cases of severe illness and up to half a 
million deaths globally each year primarily among the elderly rates 
of infection are highest among children with schoolaged children 
signiﬁcantly contributing to the spread of the disease inﬂuenza also 
has socioeconomic consequences related to both direct and 
indirect healthcare costs including hospitalisations work absence 
and loss of work productivity when either a caregiver or child is  
sick with inﬂuenza
our focus
our key marketed products
flumist is a trivalent live attenuated nasally delivered vaccine 
approved for the prevention of disease caused by inﬂuenza virus 
subtypes a and b in eligible children and adults flumist is now 
approved for eligible individuals in the us south korea canada 
hong kong israel macau and brazil
in the pipeline
we are developing a quadrivalent live attenuated inﬂuenza vaccine 
to include a fourth virus strain to provide additional seasonal 
protection and are expecting to submit the bla for regulatory 
approval in the us in 2011
in october fluenz the trade name for flumist in the eu received a 
positive opinion in the eu from the chmp for marketing the product 
in europe for children from 24 months to less than 18 years of age 
the committee’s positive opinion is now referred for a ﬁnal decision 
by the european commission which is anticipated in early 2011
sepsis
sepsis is a lifethreatening condition resulting from uncontrolled 
severe infections it remains a signiﬁcant problem in medical 
management with approximately three million annual worldwide 
incidents and a 30 mortality rate current treatment options for 
patients with severe sepsis or septic shock are extremely limited 
and although industry pipelines are focused on the development of 
products speciﬁcally for registration for the treatment of sepsis or 
septic shock there are few products in late stage development
in the pipeline
the development programme for azd9773 formerly known  
as cytofab™ an antitnfα polyclonal antibody our potential 
treatment for severe sepsis licensed from protherics inc now part 
of the btg plc group continues in phase ii development with the 
initiation of a global phase iib trial in october we also submitted a 
separate phase ii study of azd9773 in japan azd9773 has the 
potential to be one of a limited number of medicines speciﬁcally 
developed for patients with severe sepsis
tuberculosis
tuberculosis tb remains a worldwide threat and is newly 
diagnosed in over eight million people worldwide every year it is 
one of the greatest causes of death from infectious disease in the 
developing world
our focus
as part of our commitment to make a contribution to improving 
health in the developing world we are working to ﬁnd new 
improved treatments for tb we have a dedicated research facility  
in bangalore india focused on ﬁnding drugs that will act on 
multiresistant strains will simplify the treatment regime current 
regimes are complex and lengthy meaning many patients give  
up before the infection is fully treated and will be compatible with 
hivaids therapies tb and hivaids form a lethal combination 
each speeding the other’s progress over 80 scientists in 
bangalore work closely with our infection research centre in boston 
us as well as with academic leaders in the ﬁeld and they have full 
access to all astrazeneca’s platform technologies such as ‘high 
throughput screening’ and compound libraries
tb remains a complex research area in which collaborations play  
a very important role this year a discovery collaboration was 
signed with the global alliance for tb drug development towards 
progressing suitable compounds through to the lead optimisation 
stage additionally we were awarded a wellcome trust grant under 
the ‘rd for affordable healthcare in india’ initiative which will be 
used to identify novel lead molecules for the treatment of tb  
our most advanced programme azd5847 a novel oxazolidinone 
antibiotic continues in phase i studies although single and 
multipleascending dose studies in healthy volunteers are complete
financial performance 20102009
performance 2010
reported performance
infection sales were down 17 to 2176 million from 2631 million 
in 2009
performance – cer growth rates
infection sales were down 18 as the sales of the h1n1 pandemic 
inﬂuenza vaccine in 2009 were not repeated in 2010 there were 
only 39 million of sales recorded in 2010 for us government orders 
for the h1n1 pandemic inﬂuenza vaccine these sales were 
recorded in the ﬁrst quarter of 2010 and compare with 389 million 
of sales in 2009 this strain has now been incorporated into the 
traditional seasonal inﬂuenza vaccine 
flumist sales were 174 million a 20 increase over last year 
global synagis sales were down 4 with sales in the us down 
17 to 646 million being partially offset by strong growth in 
western europe where sales were up 31 to 392 million
performance 2009
reported performance
total infection sales increased by 7 to 2631 million h1n1 
pandemic inﬂuenza vaccine sales were 389 million
performance – cer growth rates
infection sales were up 10 this was driven by sales of  
389 million for the h1n1 pandemic inﬂuenza vaccine to the  
us government and continued growth in merremmeronem 5 
and flumist 39 which more than offset the 12 decline in 
synagis sales
worldwide sales of synagis in the fourth quarter were 401 million 
a 21 decrease from the same period in 2008 driven by a 
decrease of 31 of us synagis sales for the fourth quarter this 
decline in the us was a result of the adoption of new guidelines 
published by the american academy of pediatrics restricting the 
usage of synagis at the start of the 20092010 rsv season
flumist sales were 145 million for the full year
astrazeneca annual report and form 20f information 2010 60 therapy area review infection
therapy area review neuroscience
137bn
the neuroscience world market totals 137 billion
in brief
  total seroquel sales up 9 to 53 billion
  in august the european commission approved seroquel xr as 
an addon treatment of major depressive episodes in patients with 
major depressive disorder mdd who have had suboptimal 
response to antidepressant monotherapy
  seroquel xr submissions for generalised anxiety disorder gad 
were withdrawn in the us in july and from the european mutual 
recognition procedure in october
  the ﬁrst patients were enrolled in the mdd adjunct phase iii clinical 
development programme for tc5214 a neuronal nicotinic receptor 
modulator being developed with targacept in june
  in april 2010 the fda approved vimovo naproxenesomeprazole 
magnesium for arthritis patients at risk of developing nsaid
associated gastric ulcers in october eu approval was received for 
vimovo for the symptomatic treatment of osteoarthritis rheumatoid 
arthritis and ankylosing spondylitis in patients who are at risk of 
developing nsaidassociated gastric andor duodenal ulcers and 
where treatment with lower doses of naproxen or of other nsaids 
is not considered sufﬁcient
  as previously disclosed in 2010 astrazeneca reached a civil 
settlement with the us attorney’s ofﬁce department of justice 
and the state attorneys general national medicaid fraud control 
unit nmfcu to resolve an investigation relating to the marketing of 
seroquel pursuant to which astrazeneca paid to the united states 
federal government a ﬁne of 302 million plus accrued interest and 
to participating states a proportional share of up to 218 million 
plus accrued interest in september astrazeneca entered into 
individual settlement agreements with 41 states and washington 
dc for an aggregate amount of approximately 210 million 
  in 2010 astrazeneca reached agreements in principle on monetary 
terms with attorneys representing 24591 seroquel product liability 
claimants astrazeneca has made provisions in the year totalling 
592 million in respect of the ongoing seroquel product liability 
litigation and state attorney general investigations into sales and 
marketing practices in the aggregate for further details relating  
to seroquel product liability claims and state attorney general 
investigations into seroquel sales and marketing practices see 
note 25 to the financial statements from page 178 
  in january 2011 the us district court for the district of new jersey 
scheduled a trial date of 3 october 2011 in the consolidated seven 
anda patent litigations relating to seroquel xr the district court 
also entered a stipulation and consent order concerning us patent 
no 4879288 the ’288 patent one of the two patentsinsuit 
staying litigation between astrazeneca and handa 
pharmaceuticals llc handa concerning the ’288 patent until  
and including 26 march 2012 the date astrazeneca’s paediatric 
exclusivity relating to its ’288 patent expires after expiration of the 
stay astrazeneca’s infringement claims against handa relating  
to the ’288 patent and handa’s related counterclaims will be 
dismissed as moot under the stipulation handa agrees not to 
engage in the commercial sale of its generic extended release 
quetiapine fumarate products until after 26 march 2012
our marketed products
  seroquel ir quetiapine fumarate is an atypical antipsychotic 
drug generally approved for the treatment of schizophrenia  
and bipolar disorder mania depression and maintenance 
seroquel xr an extended release formulation of quetiapine 
fumarate is generally approved for the treatment of schizophrenia 
bipolar disorder mdd and in some territories for gad approved 
use for seroquel ir and seroquel xr varies based on territory
  vimovo naproxenesomeprazole magnesium is a ﬁxeddose 
combination of entericcoated naproxen an nsaid with the 
gastroprotection of immediate release esomeprazole a proton 
pump inhibitor approved for the relief of signs and symptoms of 
osteoarthritis rheumatoid arthritis and ankylosing spondylitis and 
to decrease the risk of developing gastric ulcers in patients at risk 
of developing nsaidassociated gastric ulcers
  zomig zolmitriptan is used for the treatment of migraines with 
or without aura
  diprivan propofol is an intravenous general anaesthetic used 
in the induction and maintenance of anaesthesia light sedation  
for diagnostic procedures and for intensive care sedation
  naropin ropivacaine is used as a longacting local anaesthetic 
replacing the previous standard treatment of bupivacaine
  xylocaine lidocaine is a widely used shortacting local 
anaesthetic
  emla lidocaine  prilocaine is used as a local anaesthetic for 
topical application
therapy area world market 
matq310 bn
market sectors
 psychiatry  
 neurology  
 analgesia  
 anaesthesia  
604
52
310
404
astrazeneca annual report and form 20f information 2010
additional information financial statements corporate governance overview business review
therapy area review neuroscience 61 our strategic objectives
there is still signiﬁcant unmet medical need in the areas of chronic 
pain cognitive disorders and other serious central nervous system 
disorders our aim is to strengthen our position in neuroscience 
through further growth of seroquel ir and seroquel xr and to 
discover and develop new drug candidates with meaningful 
therapeutic advantages primarily in alzheimer’s disease pain 
control and cognition
psychiatry
the depression market is currently dominated by selective  
serotonin reuptake inhibitors and serotonin norepinephrine 
reuptake inhibitors with increasing payer pressure and the need  
to demonstrate clear value new medicines must either show 
superior efﬁcacy over current treatments or clear efﬁcacy in 
welldeﬁned patient segments such as treatmentresistant 
depression as growth in the us slows the japanese and other 
asian markets continue to expand due to increased diagnosis and 
use of pharmacological treatments in response to both targeted 
government programmes and wider acceptance of 
pharmacological treatments for depression
we continue to pursue projects in clinical development aiming to 
address present unmet medical needs while no further internal 
discovery projects beyond support to existing development 
projects are planned we continue to pursue additional 
opportunities through external alliances
our focus
our key marketed products
seroquel ir is an atypical antipsychotic drug with antidepressant 
properties it is approved for the treatment of schizophrenia and 
bipolar disorder mania depression and maintenance its overall 
clinical efﬁcacy and tolerability proﬁle make it one of the leading 
atypical antipsychotics in terms of global value share in the atypical 
antipsychotic market segment
to date seroquel xr has been approved in 72 countries for 
schizophrenia 57 countries for bipolar mania 49 countries for 
bipolar depression 33 countries for bipolar maintenance six 
countries for major depressive disorder mdd and three countries 
for generalised anxiety disorder gad following referral to the 
chmp seroquel xr was approved as an addon treatment for 
major depressive episodes in patients with mdd who have had 
suboptimal response to antidepressant monotherapy the ﬁrst eu 
approvals were granted in august and launches have already 
occurred in key markets such as germany and the uk local 
approval processes continue to progress in the remaining eu 
member states that took part in the original mutual recognition 
procedure with other eu member states to follow
the seroquel xr gad submissions were withdrawn in the us 
in july and from the european mutual recognition procedure  
in october
in the pipeline
with our development partner targacept we have commenced  
the phase iii clinical development programme for tc5214 a 
neuronal nicotinic receptor modulator the programme is designed 
to support ﬁling of an nda in the second half of 2012 for tc5214  
as an adjunct treatment for mdd in patients with an inadequate 
response to 1st line antidepressant treatment an maa in europe  
is currently planned for 2015
decisions on the further development of azd2066 will be 
determined following subsequent analyses of data from a phase ii 
study in depression azd6765 remains in phase ii development to 
address the needs of patients with severe treatment resistant 
depression development of azd6280 azd8418 and azd7268  
has been discontinued
analgesia and anaesthesia pain control
the small number of currently approved products in the neuropathic 
pain market will become generic between 2014 and 2017  however 
few new products are in development and the unmet medical need 
for improvements in both efﬁcacy and tolerability is such that the 
market remains highly attractive in asia neuropathic pain drugs are 
gaining approval shifting cultural and medical treatment barriers  
it is believed that advances in the understanding of the mechanisms 
which lead to neuropathic pain will allow for improved patient 
segmentation potentially increasing the success rate of research  
in this condition
the chronic nociceptive pain market including osteoarthritis oa 
and chronic low back pain is steadily growing due to ageing 
populations combined with longer life expectancy across all regions 
including asia opioids are considered the gold standard for 
efﬁcacy for moderate to severe pain across pain segments 
however opioid pain control comes with unwanted side effects 
such as bowel dysfunction there remains a high unmet medical 
need for products that enable continued opioid pain control by 
reducing or eliminating side effects led by the antinerve growth 
factor mabs biologics are an emerging treatment option for pain 
control and this is an area in which we have an active interest 
through our biologics capabilities
therapy area review
our ﬁnancial performance
world us western europe established row emerging markets prior year
 
 
2010
sales
m
reported
growth

cer
growth

sales
m
reported
growth

sales
m
reported
growth

cer
growth

sales
m
reported
growth

cer
growth

sales
m
reported
growth

cer
growth

world
sales
m
seroquel ir 4148 1 1 3107 1 560 14 11 223 10 1 258 7 – 4171
seroquel xr 1154 66 67 640 87 359 30 36 61 85 67 94 114 109 695
local 
anaesthetics 605 1 1 29 28 265 4 1 186 9 1 125 13 8 599
zomig 428 1 2 176 3 172 4 2 69 17 8 11 15 23 434
diprivan 322 11 8 45 – 50 19 16 76 29 20 151 22 17 290
others 47 2 4 6 25 27 7 7 3 – – 11 38 25 48
total 670477 40038 1433 3 – 618 177 650 20 14 6237
2009
seroquel 4866 9 12 3416 13 928 9 17 236 24 24 286 6 18 4452
local 
anaesthetics 599 1 4 40 18 277 4 3 171 5 4 111 7 5 605
zomig 434 3 – 182 3 180 5 3 59 2 2 13 7 7 448
diprivan 290 4 6 45 15 62 19 14 59 – 7 124 20 26 278
others 48 11 4 8 11 29 12 3 3 25 25 8 – 13 54
total 6237 7 10 3691 12 1476 2 10 528 11 12 542 5 16 5837
astrazeneca annual report and form 20f information 2010 62 therapy area review neuroscience our focus
our key marketed products
vimovo naproxenesomeprazole magnesium codeveloped 
by astrazeneca and pozen inc is a ﬁxeddose combination of 
entericcoated naproxen an nsaid with the gastroprotection  
of immediate release esomeprazole a proton pump inhibitor 
approved for the relief of signs and symptoms of oa rheumatoid 
arthritis ra and ankylosing spondylitis as and to decrease the 
risk of developing gastric ulcers in patients at risk of developing 
nsaidassociated gastric ulcers following approval by the fda  
in april 2010 vimovo was launched in the us in july
in october 2009 astrazeneca ﬁled an maa in the eu via the 
decentralised procedure and in october 2010 received positive 
agreement for approval in 23 countries vimovo is indicated for the 
symptomatic treatment of oa ra and as in patients who are at risk 
of developing nsaidassociated gastric andor duodenal ulcers 
and where treatment with lower doses of naproxen or of other 
nsaids is not considered sufﬁcient each eu member state is now 
pursuing pricing and reimbursement and national approvals
in the pipeline
nktr118 an oral peripherallyacting opioid antagonist is in clinical 
development for the treatment of opioidinduced constipation oic 
which is the key gastrointestinal gi side effect of opioid treatment 
for pain and for which there are limited therapeutic treatment 
options data from a phase ii study demonstrated that oral nktr
118 improved lower gi dysfunction by increasing the frequency of 
bowel movements in patients with oic while simultaneously 
preserving opioidmediated pain relief the nktr118 phase iii 
programme is planned to start in the ﬁrst half of 2011
azd2066 has progressed through phase iia studies and azd2423 
has progressed into phase iia studies for the treatment of 
neuropathic pain
cognition
alzheimer’s disease ad remains one of the largest areas of unmet 
medical need and also one of high risk for neuroscience product 
development due in part to the challenges of establishing efﬁcacy 
in clinical studies current treatments which doctors consider 
inadequate target the symptoms not the underlying cause of the 
disease this area continues to grow but all existing marketed 
treatments will face patent expiry by 2015 disease modiﬁcation 
delivered through biologics andor small molecule treatments is 
clearly the hope for ad patients along with better diagnostics  
it is expected to allow for earlier intervention and better clinical 
outcomes but the ﬁrst wave of disease modiﬁers is still several 
years away
attention deﬁcit hyperactivity disorder adhd affects 22 million 
children worldwide
1
 as well as several million adults while there 
are a number of treatments available today which work well for 
many of these young patients they also carry certain risks because 
a great majority of them are stimulants mostly amphetamines and 
methylphenidate we continue to work on treatment options that 
would offer strong efﬁcacy without the challenges that current 
treatments bring or which would target symptoms not addressed  
by today’s medications we also hope to offer new options to  
adult adhd patients many of whom remain undiagnosed or 
untreated today
in the pipeline
the current portfolio of potential medicines in this area includes 
three compounds in phase ii development for ad adhd and 
cognitive disorders in schizophrenia cds in addition to developing 
molecules for cognitive disorders we continue to progress one 
development phase molecule for the treatment of other 
neurodegenerative diseases
through our collaboration with the karolinska institute in sweden 
the banner alzheimer’s institute in the us the national institute of 
radiological sciences in japan and others our rd capabilities  
in positron emission tomography pet imaging of the human  
brain continue to progress astrazeneca’s amyloid pet ligands may 
enable us to detect ad early and to assess drug effects in ad we 
have discovered and taken into patient studies one f18 and two 
c11 amyloid pet ligands which are being developed as research 
biomarkers additionally collaboration with the mental health 
research institute in australia is ongoing to develop new ways  
of identifying ad patients at early stages of the disease
compounds in phase ii development include products deriving 
from our relationship with targacept azd3480 azd1446 and the 
option compound tc5619 azd3480 an α4ß2 neuronal nicotinic 
receptor nnr agonist is currently in phase ii clinical testing in 
adhd in 2009 targacept announced topline results from a phase 
iia adhd study in which the primary outcome measure was met 
nonclinical assessment of therapeutic margin is ongoing with a 
decision whether to advance as a treatment for adhd expected in 
the ﬁrst quarter of 2011 azd1446 another α4ß2 nnr agonist is in 
development for ad but it is not progressing in adhd due to failure 
to meet the primary outcome measure in a recent phase iia study  
in adult adhd the option compound from targacept tc5619  
an α7 nnr agonist is in phase iia studies in cds and adhd 
and studies are in the process of being designed for ad
financial performance 20102009
performance 2010
reported performance
neuroscience sales were up 7 to 6704 million up from  
6237 million in 2009
performance – cer growth rates
neuroscience sales were up 7
seroquel sales were up 9 to 5302 million with seroquel xr 
sales up 67 to 1154 million partially offset by a 1 decline in 
seroquel ir sales to 4148 million us sales of seroquel were 
3747 million 10 ahead of last year with seroquel xr sales 
up 87 to 640 million and seroquel ir up 1 to 3107 million 
for 2010 seroquel sales outside the us increased by 7 to 
1555 million
performance 2009
reported performance
neuroscience sales grew by 7 to 6237 million in 2009 from 
5837 million in 2008
performance – cer growth rates
neuroscience sales grew by 10 to 6237 million from  
5837 million last year
us sales for seroquel were 3416 million 13 ahead of last year 
seroquel sales outside the us increased by 8 to 1450 million 
outside the us and canada value and volume growth for seroquel 
were well ahead of the atypical antipsychotic market
sales of zomig were down 3 in the us to 182 million sales 
outside the us were up 3 to 252 million
1
 decision resources 2008
astrazeneca annual report and form 20f information 2010
additional information financial statements corporate governance overview business review
therapy area review neuroscience 63 oncology
53bn
the world market value for cancer therapies is 53 billion 
and continues to grow
in brief
  arimidex sales down 22 to 15 billion impacted by patent expiry 
in the us in june however market exclusivity has been extended 
in many eu markets from august 2010 to february 2011 
  zoladex sales 11 billion unchanged from the previous year
  casodex sales 579 million down 34 as a result of generic 
competition in the us western europe and japan
  iressa sales 393 million up 28 having been launched in the eu 
as the ﬁrst approved personalised medicine for the treatment of 
adults with locally advanced or metastatic nonsmall cell lung 
cancer nsclc with activating mutations of the epidermal growth 
factor receptortyrosine kinase egfrtk in january 2011 
astrazeneca informed the fda that it will be withdrawing the 
accelerated approval nda for iressa
  vandetanib has been submitted for regulatory approval for the 
treatment of unresectable locally advanced medullary thyroid 
cancer in the us and the eu in january 2011 the fda extended 
the time to complete its review of the vandetanib nda by three 
months to 7 april 2011
  recentin cediranib did not meet its primary endpoints in two 
pivotal studies examining cediranib in 1st line metastatic colorectal 
cancer mcrc and a third pivotal study in recurrent glioblastoma 
rgbm and therefore no regulatory submissions will be ﬁled in  
1st line mcrc or rgbm however studies continue in nsclc
  zibotentan zd4054 did not demonstrate a signiﬁcant improvement 
in overall survival in a phase iii study in patients with metastatic 
castration resistant prostate cancer crpc therefore no 
regulatory submissions for zibotentan are planned at this time 
however clinical studies continue in other crpc settings 
  olaparib azd2281 is in ongoing phase ii studies for the treatment 
of certain types of breast and ovarian cancer and a decision in 
relation to phase iii studies has been delayed until later in 2011
our marketed products
  arimidex anastrozole is an aromatase inhibitor used for the 
treatment of early breast cancer
  zoladex goserelin acetate implant in one and threemonth 
depots is a luteinising hormonereleasing hormone agonist used 
for the treatment of prostate cancer breast cancer and certain 
benign gynaecological disorders
  casodex bicalutamide is an antiandrogen therapy used for the 
treatment of prostate cancer
  iressa geﬁtinib is used as an egfrtk inhibitor that acts to block 
signals for cancer cell growth and survival in nsclc
  faslodex fulvestrant is an injectable oestrogen receptor 
antagonist used for the treatment of hormone receptorpositive 
metastatic breast cancer for post menopausal women whose 
disease has spread following treatment with an antioestrogen 
medicine
  nolvadex tamoxifen citrate remains a widely used breast cancer 
treatment outside the us
therapy area review
therapy area world market 
matq310 bn
market sectors
 chemotherapy  
 hormonal therapies  
 monoclonal antibodies  
 small molecule tkis  
193
87
162
89
astrazeneca annual report and form 20f information 2010 64 therapy area review oncology our strategic objectives
we aim to build on our position as one of the world leaders in 
cancer treatment established with brands such as arimidex and the 
growing brands faslodex and iressa our future growth will be 
driven through targeting the right treatments both small molecules 
and biologics to the right patients using companion diagnostics 
where appropriate this approach is driving the growth of iressa 
and is a key focus in the development of our early stage portfolio
our focus
our key marketed products
arimidex ﬁrst launched in 1995 remains the leading hormonal 
therapy for patients with early breast cancer globally this success 
is largely based on the extensive longterm efﬁcacy and safety 
results of the atac study which showed arimidex to be signiﬁcantly 
superior to tamoxifen at preventing breast cancer recurrence  
during and beyond the ﬁveyear treatment course in europe 
supplementary protection certiﬁcate extensions were applied for 
under the eu paediatric regulation and subsequently granted in all 
12 applicable eu countries including france germany italy and the 
uk the extension provides for an additional six months of market 
exclusivity from august 2010 to february 2011
faslodex 500mg is now approved in the eu and the us replacing 
the 250mg dose for most patients it offers an additional more 
efﬁcacious hormonal therapy option for patients with hormone
receptor positive advanced breast cancer delaying the need for 
cytotoxic chemotherapy it is given by oncemonthly injections and 
is approved for the 2nd line treatment of hormonereceptor positive 
advanced breast cancer in postmenopausal women in other 
markets where 250mg is approved plans are in place to replace  
the dose with 500mg and in markets where faslodex is not 
approved plans are to seek approval for the 500mg dose as the  
ﬁrst registration
casodex and zoladex are both leading endocrine therapies for the 
treatment of prostate cancer casodex is used as a 50mg tablet for 
the treatment of advanced prostate cancer and as a 150mg tablet 
for the treatment of locally advanced prostate cancer
zoladex a luteinising hormonereleasing hormone lhrh agonist 
is approved in 120 countries for the treatment of prostate cancer 
breast cancer and certain benign gynaecological disorders in 
nonmetastatic prostate cancer zoladex has been shown to 
improve overall survival both when used in addition to radical 
prostatectomy and when used in addition to radiotherapy  
in breast cancer zoladex is widely approved for use in advanced 
breast cancer in premenopausal women in a number of countries 
zoladex is also approved for the adjuvant treatment of early stage 
premenopausal breast cancer as an alternative to andor in 
addition to chemotherapy zoladex offers proven survival beneﬁts 
for breast cancer patients with a favourable tolerability proﬁle 
competition in the lhrh agonist market is expected to increase  
in europe during 2011 with further launches of generic goserelin  
the active ingredient in zoladex
iressa is approved in 76 countries and is one of the leading 
epidermal growth factor receptortyrosine kinase egfrtk 
inhibitors in japan and the asia paciﬁc region where it is marketed 
for pretreated advanced nonsmall cell lung cancer nsclc 
outside the eu indications are being sought or expanded from  
the pretreated setting to include 1st line patients whose tumours 
harbour activating mutations of the egfr–tk inhibitor
mature data from the ipass study showed that overall survival  
was similar between iressa and carboplatinpaclitaxel doublet 
chemotherapy and conﬁrmed that iressa may be a potential option 
for the 1st line treatment of egfr mutation positive patients with 
advanced nsclc in the eu iressa has been launched as the ﬁrst 
personalised medicine for the treatment of adults with locally 
advanced or metastatic nsclc with activating mutations
in january 2011 astrazeneca informed the fda that it will be 
withdrawing the accelerated approval nda for iressa effective 
30 september 2011 astrazeneca does not plan to pursue approval 
for iressa in the us
in the pipeline
vandetanib blocks the development of a tumour’s blood supply 
antiangiogenesis inﬂuencing the growth and survival of the tumour 
itself ret rearranged during transfection and antiegfrkinase 
activity vandetanib is under regulatory review in the us and the  
eu for the treatment of patients with unresectable locally advanced 
medullary thyroid cancer mtc the fda had granted priority 
review status for the nda and set a prescription drug user fee act 
pdufa action date of 7 january 2011 however as part of the 
review process in the us the fda required that we submit a risk 
evaluation and mitigation strategy rems a proposed rems  
was submitted by astrazeneca in december 2010 and the fda 
accordingly extended the original pdufa date by three months to  
7 april 2011 the submissions are supported by the results from the 
zeta phase iii study which showed that treatment with vandetanib 
signiﬁcantly extended progressionfree survival pfs the primary 
endpoint of the study in patients with advanced mtc results from 
a phase ii study also showed that vandetanib signiﬁcantly improved 
pfs when compared to placebo for patients with locally advanced 
or metastatic papillary or follicular thyroid cancer 
our ﬁnancial performance
world us western europe established row emerging markets prior year
 
 
2010
sales
m
reported
growth

cer
growth

sales
m
reported
growth

sales
m
reported
growth

cer
growth

sales
m
reported
growth

cer
growth

sales
m
reported
growth

cer
growth

world
sales
m
arimidex 1512 21 22 494 44 580 7 4 287 10 2 151 3 6 1921
zoladex 1115 3 – 46 15 276 19 17 451 8 – 342 24 23 1086
casodex 579 31 34 16 89 113 39 37 347 14 18 103 6 8 844
iressa 393 32 28 4 20 49 600 643 182 15 9 158 24 20 297
others 446 21 21 161 27 135 14 19 61 9 4 89 29 25 370
total 4045 10 12 721 41 1153 10 7 1328 3 4 843 15 12 4518
2009
arimidex 1921 3 7 878 16 626 9 – 261 5 – 156 8 3 1857
zoladex 1086 5 – 54 25 341 10 1 416 6 – 275 6 6 1138
casodex 844 33 34 148 49 185 60 56 402 6 5 109 12 1 1258
iressa 297 12 8 5 29 7 250 250 158 22 9 127 1 4 265
others 370 15 13 127 37 118 2 9 56 4 7 69 6 20 436
total 4518 9 7 1212 9 1277 22 15 1293 7 1 736 5 5 4954
astrazeneca annual report and form 20f information 2010
additional information financial statements corporate governance overview business review
therapy area review oncology 65 recentin cediranib is an antiangiogenic compound being 
evaluated across a range of tumour types the outcomes of two 
pivotal studies examining cediranib in 1st line metastatic colorectal 
cancer mcrc were reported in the ﬁrst half of 2010 and a third 
pivotal study in recurrent glioblastoma rgbm was reported in july 
the trials suggest that cediranib has clinical activity but limited 
clinical utility in these settings astrazeneca does not intend to ﬁle 
regulatory submissions in 1st line mcrc or rgbm there are 
ongoing phase ii studies in nsclc and other solid tumours
zibotentan zd4054 is an oral oncedaily potent and speciﬁc 
endothelin areceptor antagonist data from a randomised phase ii 
study suggested that zibotentan 10mg had the potential to improve 
survival with a generally well tolerated safety proﬁle in men with 
metastatic castration resistant prostate cancer crpc however 
data from a phase iii study in the same population did not show  
a signiﬁcant improvement in overall survival therefore no regulatory 
submissions for zibotentan are planned at this time the full  
results of these studies are expected to be published in 2011  
the remaining phase iii enthuse studies investigating efﬁcacy  
in metastatic crpc in combination with docetaxel and in  
nonmetastatic crpc are ongoing
olaparib azd2281 is an oral polyadpribosepolymerase  
inhibitor a new class of drug which potentially offers an innovative 
therapeutic approach to treating cancers by targeting weaknesses 
in dna repair inherent in many tumour cells olaparib is currently 
being evaluated in phase ii studies for the treatment of certain  
types of breast and ovarian cancer progression to phase iii studies 
has been delayed while a patientfriendly formulation is under 
investigation a decision on phase iii studies will be taken in 2011 
when the new formulation becomes available
our early oncology pipeline includes a range of novel compounds 
that target signalling pathways believed to be pivotal in cancer cell 
growth and survival tumour immunology and dna repair 
mechanisms azd8931 a panerb kinase inhibitor has commenced 
phase ii testing targeting the treatment of metastatic breast cancer 
also in phase ii is azd6244 a potent mek mitogenactivated 
protein kinase 1 inhibitor licensed from array biopharma inc 
which has shown biological activity in both lung cancer and 
melanoma the phase i combination studies for azd6244 with the 
merck akt inhibitor mk2206 are nearing completion with tumour 
speciﬁc phase ii studies planned for 2011
azd8055 azd7762 azd1480 and azd4547 are all completing 
phase i studies while azd3514 azd2461 and azd5363 all entered 
phase i clinical trials this year in september we entered into a 
collaboration with cancer research uk to conduct phase i testing  
of azd3965 an inhibitor of cancer cell metabolism in june  
we entered into a partnership with dainippon sumitomo for the 
codevelopment through phase i of azd3016 an immune modulator
we are also developing potential new cancer drugs using a variety 
of biologic approaches our investigational biologics are directed 
towards molecular targets with a strong role in cancer progression 
and incorporate innovative technologies providing the potential to 
eliminate cancer cells in more effective ways within biologics  
we continue to progress a discovery and clinical pipeline that is 
balanced across different antitumour approaches including 
impacting cancer cells directly growth factor and survival signalling 
modulating the blood supply that tumours need to grow vascular 
modulation and activating a patient’s own immune system to 
eliminate cancer cells immunemediated killing
our biologics pipeline includes investigational treatments for 
cancers of the blood as well as for a variety of solid tumours  
we currently have ﬁve investigational drugs in phase i trials which 
are currently planned to progress to phase ii studies in 2011 
additional drug candidates are expected to begin phase i trials  
in 2011
financial performance 20102009
performance 2010
reported performance
oncology sales were down 10 to 4045 million compared with 
4518 million in the prior year
performance – cer growth rates
oncology sales were down 12
sales of arimidex were down 22 this was mainly due to sales in 
the us which were down 44 to 494 million reﬂecting the inroads 
made by generics since their approval at the end of june arimidex 
sales outside the us were down 3 to 1018 million 
casodex sales were down 34 with sales in the us down 89 
to 16 million as a result of generic competition that began in the 
third quarter 2009 sales outside the us were also down 22 to 
563 million 
iressa sales increased by 28 to 393 million including 49 million 
of sales in western europe sales in japan were up 8 sales in 
emerging markets were up 20 including a 23 increase in china
faslodex sales for the full year increased by 35 in the us and 
grew by 32 outside the us
performance 2009
reported performance
oncology sales decreased by 9 to 4518 million down from 
4954 million in 2008
performance – cer growth rates
oncology sales were down 7 arimidex sales were up 7 to 
1921 million in the us arimidex sales were up 16 to 878 million 
outside the us sales were unchanged at 1043 million
casodex sales decreased by 34 to 844 million with sales in the 
us down by 49 and sales outside the us down by 29 due to 
continued erosion from generic competition
astrazeneca annual report and form 20f information 2010 66 therapy area review oncology
therapy area review respiratory  inﬂammation
58bn
the prescription respiratory world market value is 58 billion
in brief
  total symbicort sales 27 billion up 20
  total pulmicort sales 872 million down 34
  in november the us court of appeals for the federal circuit 
afﬁrmed the us district court district of new jersey’s issuance  
of a preliminary injunction barring apotex inc and apotex corp 
apotex from launching a generic version of pulmicort respules 
apotex has petitioned the appellate court for a rehearing of its 
appeal en banc
  fostamatinib previously known as r788 was inlicensed from 
rigel in february 2010 and in september the ﬁrst patient was 
enrolled in a phase iii clinical development programme for 
rheumatoid arthritis
our marketed products
  symbicort pmdi budesonideformoterol in a pressurised 
metereddose inhaler is used for the treatment of asthma and 
chronic obstructive pulmonary disease copd in the us
  symbicort turbuhaler budesonideformoterol in a dry powder 
inhaler is a combination of an inhaled corticosteroid and a fast 
onset longacting bronchodilator used for the treatment of asthma 
and copd it is also approved for maintenance and reliever therapy 
smart in persistent asthma
  pulmicort budesonide is a corticosteroid antiinﬂammatory 
inhalation drug that is used to help prevent the symptoms of and 
improve the control of asthma
  pulmicort respules budesonide inhalation suspension is a ﬁrst 
nebulised corticosteroid used for the treatment of asthma in both 
children and adults approved use for pulmicort respules varies 
based on territory 
  rhinocort budesonide is a nasal steroid used as a treatment for 
allergic rhinitis hay fever perennial rhinitis and nasal polyps
  oxis formoterol is a fast onset longacting betaagonist used for 
the treatment of asthma and copd
  accolate zaﬁrlukast is an oral leukotriene receptor antagonist 
used for the treatment of asthma
therapy area world market 
matq310 bn
market sectors
 asthma  
 copd  
 rhinitis  
 other  
194
201
74
111
astrazeneca annual report and form 20f information 2010
additional information financial statements corporate governance overview business review
therapy area review respiratory  inﬂammation 67 our strategic objectives
we aim to build on our strong position in the respiratory and 
inﬂammation ﬁeld through the growth of key products particularly 
symbicort with new indications and market launches including 
chronic obstructive pulmonary disease copd as well as through 
developing a strong pipeline of novel small molecule and biologics 
approaches to copd and asthma we aspire to enter the 
rheumatology market through our biologics pipeline and targeted 
small molecule approaches
copd and asthma
according to who copd is currently the fourth leading cause  
of death worldwide with future increases anticipated current 
treatment has recently demonstrated some survival beneﬁt but the 
impact of medication on the course of the disease is small and the 
prognosis of the copd patient remains poor in asthma morbidity 
and mortality remain important issues and disease normalisation is 
not achieved by any treatment
the typical treatment for both moderate copd and asthma is a 
ﬁxeddose combination of an inhaled corticosteroid ics with a 
longacting betaagonist laba for example symbicort or for 
copd speciﬁcally an inhaled longacting muscarinic antagonist 
lama other major asthma treatments include monotherapy icss 
oral leukotriene receptor antagonists andor oral steroids for severe 
disease and in combination with antibiotics for exacerbations over 
recent years studies employing patientcentric tools such as the 
asthma control questionnaire have revealed a surprisingly low 
asthma control at all severities highlighting an underestimated 
medical need
our focus
our key marketed products
symbicort improves symptoms and provides a clinically important 
improvement in the health of many patients with either asthma or 
copd by providing effective and rapid control of the symptoms
symbicort pmdi pressurised metereddose inhaler is indicated in 
the us for the treatment of asthma in patients 12 years of age and 
older the copd indication was approved and launched in the us 
in early 2009 in june the us prescribing information was updated 
to include the fda’s new recommendations for appropriate use of 
asthma medications containing labas the class label changes for 
all labacontaining products are speciﬁc to the treatment of 
asthma and do not apply to the treatment of copd
symbicort turbuhaler was launched in japan for the treatment of 
adult asthma in january 2010 and is copromoted in japan together 
with astellas symbicort smart provides increased asthma control 
and simpliﬁes asthma management through the use of only one 
inhaler for both maintenance and relief of asthma symptoms as well 
as being a costeffective treatment for many healthcare payers the 
symbicort smart approach can also result in lower ics and oral 
steroid use compared to other treatment options
pulmicort is one of the world’s leading inhaled corticosteroids for 
the treatment of asthma and is available in several forms teva has 
had an exclusive licence to sell a generic version of pulmicort 
respules in the us since 2009
clinical studies of our key marketed products 
the eurosmart study including more than 8000 patients 
compared the two symbicort maintenance doses within the 
smart concept in asthma to identify possible patient characteristics 
at baseline which would predict a better response to a higher than 
standard maintenance dose in a real life setting the results from 
the study showed that symbicort smart at the 2x2 maintenance 
dose did prolong time to ﬁrst severe exacerbation and reduced 
symptoms patients with low lung function beneﬁted most from the 
higher maintenance dose
in the pipeline
building on our capabilities in combinations and device 
development demonstrated through our experience with symbicort 
we are aiming to further improve the mainstay of treatment for 
copd patients by combining bronchodilators such as the laba 
azd3199 and the lama azd8683 being developed in 
collaboration with pulmagen therapeutics synergy limited with 
inhaled antiinﬂammatory compounds such as inhaled selective 
glucocorticoid receptor agonists azd5423 being developed in 
collaboration with bayer schering pharma which recently 
commenced phase ii studies additionally we are targeting 
inﬂammation in copd using oral routes of administration and  
have commenced a phase ii study of azd5069 a cxcr2 
antagonist that targets neutrophils azd9668 an oral inhibitor of 
neutrophil elastase has been discontinued for the treatment of 
copd based on phase iib study data
we are targeting uncontrolled asthmaasthma exacerbations 
though small molecule approaches such as azd1981 a crth2 
receptor antagonist and azd8848 a tolllike receptor 7 agonist 
being developed in collaboration with dainippon sumitomo as well 
as biological approaches such as benralizumab medi563 a mab 
that blocks the binding of interleukin5 to its receptor tralokinumab 
cat354 a mab that targets interleukin13 and medi528  
an antiil9 mab which are all in phase ii
therapy area review
our ﬁnancial performance
world us western europe established row emerging markets prior year
 
 
2010
sales
m
reported
growth

cer
growth

sales
m
reported
growth

sales
m
reported
growth

cer
growth

sales
m
reported
growth

cer
growth

sales
m
reported
growth

cer
growth

world
sales
m
symbicort 2746 20 20 721 48 1367 2 5 286 75 59 372 25 23 2294
pulmicort 872 33 34 305 62 215 6 4 114 13 5 238 35 32 1310
rhinocort 227 14 16 93 28 39 13 11 16 14 – 79 4 – 264
others 254 4 5 41 15 118 4 3 22 4 13 73 4 1 264
total 4099 1 1 1160 21 1739 – 3 438 46 33 762 23 20 4132
2009
symbicort 2294 14 23 488 91 1345 2 11 163 3 13 298 8 21 2004
pulmicort 1310 12 10 804 18 229 8 1 101 9 4 176 2 12 1495
rhinocort 264 18 15 129 29 45 6 2 14 7 – 76 1 6 322
others 264 14 7 48 9 123 16 7 23 12 8 70 15 4 307
total 4132 –6 1469 – 1742 1 8 30138 6202 14 4128
 
 
astrazeneca annual report and form 20f information 2010 68 therapy area review respiratory  inﬂammation rheumatology
rheumatoid arthritis ra is currently treated with generic disease
modifying antirheumatic agents and where the relevant criteria are 
met biologic diseasemodiﬁers there remains a need for novel 
effective treatments since only about a third of patients treated with 
biologics achieve their treatment goals we anticipate that the ra 
market will experience modest annual growth over the next decade 
as sales increase from 9 billion to 12 billion
1
 sales of the biologic 
tumour necrosis factor tnf alpha blockers accounted for 75  
of majormarket ra sales and the launch in 2010 of two new tnf 
blockers is likely to sustain the tnf class sales use of other 
biologic approaches currently reserved for tnf blocker failures  
is expected to increase due to new entrants new subcutaneous 
formulations and use earlier in the treatment pathway targeted 
novel oral drugs that provide antitnflike efﬁcacy with safety 
beneﬁts and more convenient dosing will likely be used ahead of  
the tnf blockers especially in patients that currently choose not  
to take are ineligible for or do not respond to tnf blockers and 
other ra biologics
current treatment of systemic lupus erythematosus sle  
focuses on controlling disease ﬂares preventing renal failure and 
suppressing symptoms to an acceptable level while minimising 
toxicity despite considerable recent development activity no 
targeted diseasemodifying agents have yet been successfully 
launched for sle most emerging biologic agents will likely be used 
initially in combination with corticosteroids or immunosuppressants 
to provide incremental beneﬁt andor allow reduced doses or 
numbers of these agents
in the pipeline
fostamatinib previously known as r788 was inlicensed from  
rigel in february 2010 fostamatinib is the ﬁrst oral syk inhibitor in 
development as a novel therapeutic approach for ra it is thought 
to reversibly block signalling in multiple cell types involved in 
inﬂammation and tissue degradation in ra in september the  
ﬁrst patient was enrolled in the fostamatinib phase iii clinical 
development programme called oskira the ﬁrst anticipated 
regulatory ﬁlings based on the oskira programme are currently 
planned for 2013 under the terms of the agreement with rigel 
astrazeneca will make an upfront payment to rigel of 100 million 
with up to an additional 345 million payable if speciﬁed 
development regulatory and ﬁrst commercial sale milestones are 
achieved rigel will also be eligible to receive up to an additional 
800 million of speciﬁed salesrelated milestone payments if the 
product achieves considerable levels of commercial success  
as well as signiﬁcant stepped doubledigit royalties on net sales 
worldwide astrazeneca is responsible for all development 
regulatory ﬁlings manufacturing and global commercialisation 
activities in all licensed indications under the agreement
in 2010 we invested in several novel multifunctional mabs in 
inﬂammatory and autoimmune conditions sifalimumab medi545 
which targets interferonalpha is being prepared for a phase iib 
doseranging study in patients with sle mavrilimumab cam3001 
licensed from csl limited which targets the alpha subunit of the 
granulocytemacrophage colony stimulating factor receptor 
successfully completed a phase i study to assess the tolerability 
and preliminary pharmacokinetics and pharmacodynamics of single 
intravenous doses of cam3001 in subjects with ra a phase ii 
randomised doubleblind placebocontrolled multiple ascending 
dose study evaluating the efﬁcacy and safety of cam3001 in 
subjects with ra is also in progress
financial performance 20102009
performance 2010
reported performance
respiratory  inﬂammation ri sales were down 1 to 4099 million 
compared with 4 132 million in 2009
performance – cer growth rates
ri sales were down 1
total sales of symbicort were up 20 to 2746 million with strong 
growth both in the us which was up 48 to 721 million and 
outside the us which was up 13 to 2025 million
sales of pulmicort were down 34 mainly as a result of us sales 
which decreased 62 to 305 million as a result of the launch 
under licence from astrazeneca of the teva generic budesonide 
inhaled suspension product in december 2009 sales of pulmicort 
outside the us were up 10 to 567 million
performance 2009
reported performance
ri sales were 4132 million almost level with the 4128 million  
in 2008
performance – cer growth rates
ri sales grew by 6
total sales of symbicort grew by 23 to 2294 million in the us 
sales of symbicort pmdi were 488 million up 91 this strong 
growth was led by doctors’ increasing use of symbicort pmdi 
particularly in those patients newly starting ﬁxed combination 
therapy for these patients more than one in three prescriptions 
written by specialists and more than one in four prescriptions  
written by primary care physicians was for symbicort pmdi 
symbicort turbuhaler and smart sales outside the us in 
the year were 1806 million up 13
total sales for pulmicort were down 10 to 1310 million total us 
sales for pulmicort for the full year were down 18 to 804 million 
due to generic competition for pulmicort respules pulmicort 
respules accounted for around 86 of total pulmicort sales in the 
us total sales of pulmicort outside the us were up 4 for the full 
year to 506 million  
1
 decision resources 2010
astrazeneca annual report and form 20f information 2010
additional information financial statements corporate governance overview business review
therapy area review respiratory  inﬂammation 69 how is our 
business 
performing  
around the world
revenue growth  
in markets outside 
the us in 2010 
broadly offset the 
loss of revenue  
in the us
astrazeneca annual report and form 20f information 2010 70 geographical review this section contains further information about 
the performance of our products within the 
geographical areas in which our sales and 
marketing efforts are focused
for more information regarding our products see the therapy area 
review from page 50 details of material legal proceedings can be 
found in note 25 to the financial statements from page 178 and 
details of relevant risks are set out in the principal risks and 
uncertainties section from page 96
see the market deﬁnitions table on page 217 for information about 
astrazeneca’s market deﬁnitions
2010 in brief
  in the us combined sales of our key growth brands of crestor 
onglyza™ seroquel symbicort and vimovo were up 19 
to 7167 million 2009 6014 million despite this strong 
performance overall sales decreased by 7 to 13727 million  
as a result of increased generic competition for arimidex 
casodex pulmicort respules and toprolxl and its authorised 
generic and the absence of the h1n1 pandemic inﬂuenza  
swine ﬂu vaccine revenue
  western europe reported a strong performance in the context of 
increased competition and governmental controls over healthcare 
expenditure crestor outperformed the statin market in western 
europe with doubledigit growth by volume and seroquel grew 
three times as fast as the atypical antipsychotic market segment 
 in western europe by value 
  established row sales were up 7 driven by the strong 
performance for crestor as well as the successful launch for 
symbicort turbuhaler in japan
  emerging markets delivered strong doubledigit sales growth of 
16 to 5198 million with sales growth in china of 28 russia  
of 26 and brazil of 17
  astrazeneca is the third largest pharmaceutical company in the  
us with a 6 share of us prescription pharmaceutical sales and 
the seventh largest prescriptionbased pharmaceutical company  
in western europe with a 48 market share of prescription sales 
by value 
geographical review
our ﬁnancial performance
2010 2009 2008
sales
m
reported
growth 

cer
growth

sales
m
reported
growth

cer
growth

sales
m
us 13727 7 7 14777 9 9 13510
western europe 9168 1 2 9252 5 3 9743
canada 1510 26 14 1203 6 3 1275
japan 2617 11 4 2367 20 7 1957
other established row 1049 23 6 853 1 12 843
established row 5176 17 7 4423 8 7 4075
emerging europe 116576 1091 10 7 1215
china 1047 29 28 811 29 27 627
emerging asia paciﬁc 890 14 7 780 3 6 802
other emerging row 2096 26 20 1670 3 13 1629
emerging markets 5198 19 16 4352 2 12 4273
total 33269 1 – 3280447 31601
astrazeneca annual report and form 20f information 2010
additional information financial statements corporate governance overview business review
geographical review 71 us
astrazeneca is the third largest pharmaceutical company in the us 
with a 6 share of us prescription pharmaceutical sales
sales in the us decreased 7 to 13727 million 2009 14777 million 
as strong performance from our key growth brands was offset by 
the impact of increased generic competition experienced by our 
mature brands combined sales of our key growth brands namely 
crestor onglyza™ seroquel symbicort and vimovo were up 19 
to 7 167 million 2009 6014 million increased generic 
competition for arimidex pulmicort respules and toprolxl and its 
authorised generic resulted in a sales decline in these brands of 
46 to 1377 million 2009 2534 million
crestor achieved sales of 2640 million 2009 2100 million and 
a total prescription growth of 122 within the statin market this 
growth signiﬁcantly outpaced the market by 95 and the growth  
of total generic statins by 13 
seroquel continued to be the most prescribed atypical anti
psychotic with sales up 10 to 3747 million 2009 3416 million 
seroquel grew total prescriptions by 132400 this was driven by 
strong seroquel xr prescription volume growth of 92 following 
the promotional launch of the adjunct major depressive disorder 
indication in the ﬁrst quarter of 2010 seroquel xr was the fastest 
growing branded atypical antipsychotic accounting for 159 of 
the seroquel total prescription volume in the us up from 111 at 
the end of 2009 
symbicort pmdi continued to deliver steady growth in the us with 
sales up 48 to 721 million 2009 488 million and prescription 
growth of 44 leading the ﬁxed combination class in total 
prescription growth it achieved an 18 total prescription share  
and a 195 new prescription share of the inhaled corticosteroid
longacting betaagonist market
onglyza™ is presently capturing one in four new dipeptidyl 
peptidase patient treatment decisions and achieved over an 8 
total prescription share gain in 2010 ending the year with a total 
prescription share of 10 of the dipeptidyl peptidase iv inhibitor 
market sales in the us were 54 million 2009 11 million
nexium remained the third most prescribed branded 
pharmaceutical in the us in the face of continuing generic otc 
and pricing pressures nexium sales were down 5 to 2695 
million 2009 2835 million generic lansoprazole and prevacid 
otc 24 hour were introduced in late 2009 leaving nexium as the 
only branded pharmaceutical product with signiﬁcant market share 
by volume in the proton pump inhibitor class 
sales of toprolxl and its authorised generic which is marketed 
and distributed by par pharmaceutical companies inc decreased 
29 to 689 million 2009 964 million with further generic 
competition from watson pharmaceuticals inc and wockhardt ltd 
which entered the market in 2010
patent protection in the us for arimidex expired in june following 
which multiple generic formulations of arimidex were approved 
by the fda and entered the market as a result sales of arimidex 
declined 44 to 494 million 2009 878 million generic 
competition also caused casodex sales to decline by 89 to 
16 million 2009 148 million
sales for pulmicort respules were down 72 to 194 million 
2009 692 million as a result of sales of teva’s generic product 
which entered the market under an exclusive licence from 
astrazeneca in december 2009
in 2010 sales of synagis in the us were down 17 to 646 million 
2009 782 million sales in the 20092010 respiratory syncytial 
virus rsv season started slower than anticipated due to payer 
pressure as a result of the introduction of more restrictive guidelines 
regarding the use and dosing of synagis by the american academy 
of pediatrics and the adoption of these guidelines
revenue from the sale of the h1n1 pandemic inﬂuenza swine ﬂu 
vaccine to the us government fell to 39 million 2009 389 million 
as the order for the us department of health and human services 
was fulﬁlled in the ﬁrst quarter of 2010 and this strain has now been 
incorporated into the traditional seasonal inﬂuenza vaccine
sales for aptium oncology inc fell by 44 to 219 million  
2009 393 million and sales for astra tech ab rose by 22  
to 101 million 2009 83 million
in march 2010 the affordable care act came into force it has had 
and is expected to have a signiﬁcant impact on our us sales and 
the us healthcare industry as a whole for further information see 
the pricing pressure section from page 11
currently there is no direct government control of prices for 
commercial prescription drug sales in the us however some 
publicly funded programmes such as medicaid and tricare 
department of veterans affairs have statutorily mandated rebates 
and discounts that have the effect of price controls for these 
programmes additionally pressure on pricing availability and 
utilisation of prescription drugs for both commercial and public 
payers continues to increase this is driven by among other things 
an increased focus on generic alternatives primary drivers of 
increased generic use are budgetary policies within healthcare 
systems and providers including the use of ‘generics only’ 
formularies and increases in patient coinsurance or copayments 
in 2010 78 of the prescriptions dispensed in the us were generic 
while it is unlikely that there will be widespread adoption of a broad 
national pricecontrol scheme in the near future there will continue 
to be increased attention to pharmaceutical prices and their impact 
on healthcare costs for the foreseeable future
rest of world
sales performance outside the us in 2010 was strong up 7  
to 19542 million 2009 18027 million despite the continuing 
challenging economic environment combined sales of key 
products arimidex crestor nexium seroquel and symbicort were 
up 11 with sales of 9923 million 2009 8824 million emerging 
markets delivered particularly strong sales up 16 with sales of 
5198 million 2009 4352 million
western europe
astrazeneca is the seventh largest prescriptionbased 
pharmaceutical company in western europe with a 48 market 
share of prescription sales by value
total sales in western europe were up 2 reported down 1  
to 9168 million 2009 9252 million as volume growth exceeded 
the negative impact from price reductions chieﬂy related to 
government interventions much of the volume growth was 
attributable to crestor seroquel xr and symbicort
astrazeneca annual report and form 20f information 2010 72 geographical review
geographical review crestor outperformed the statin market with strong doubledigit 
sales growth by volume likewise seroquel outperformed the 
atypical antipsychotics market segment by three times in value  
with strong growth of seroquel xr primarily driven by the bipolar 
indication symbicort defended its position in the inhaled 
corticosteroidbetaagonist market well despite a highly 
competitive environment generic versions of nexium are now 
available in several markets but overall sales were up 2 to  
1202 million reported down 2 2009 1225 million
most governments in europe intervene directly to control the price 
and reimbursement of medicines the decision making power of 
prescribers in europe has been eroded in favour of a diverse range 
of payers while the systems to control pharmaceutical spending 
vary they have all had a noticeable negative impact on the uptake 
and availability of innovative medicines several governments have 
imposed price reductions and increased the use of generic 
medicines as part of healthcare expenditure control several 
countries are applying strict criteria for costeffectiveness 
evaluations of medicines which has reduced access to medicines 
for european patients in areas of high unmet medical need these 
and other measures all contribute to an increasingly difﬁcult 
environment for branded pharmaceuticals in europe
further in 2010 we experienced a number of government 
interventions in our markets which combined with the current 
economic conditions had a negative impact on our sales in 
particular sales growth in germany slowed to 1 reported down 
3 to 1235 million 2009 1278 million principally owing to an 
increase of compulsory rebates for symbicort and seroquel and 
reference pricing for crestor however seroquel symbicort and 
atacand all showed a strong performance on an underlying volume 
basis as a result of the debt crisis in greece the greek government 
implemented signiﬁcant price cuts in 2010 which resulted in an 
overall sales decline of 14 to 322 million 2009 392 million  
in the uk a 3 decrease in sales to 1022 million 2009 1056 
million was caused in part by a 19 price cut across the portfolio 
although this was partially offset by strong performance of crestor 
and symbicort
overall sales in france increased by 7 to 1848 million 2009 
1810 million driven by doubledigit growth of crestor and nexium 
and continued strong growth of symbicort despite very aggressive 
competition sales in italy were up 4 reported unchanged to 
1198 million 2009 1199 million crestor showed particularly 
strong growth of 24 however from august performance was 
impacted by a general price cut in sales to the private sector of 18
established row
sales in established row increased by 7 the key products 
driving sales growth in 2010 were crestor symbicort nexium 
and seroquel
canada
astrazeneca remains the second largest researchbased 
pharmaceutical company in canada by sales value in 2010  
total canadian sales increased by 14 to 1510 million  
2009 1203 million compared to a yearonyear increase of  
36 for the canadian pharmaceutical industry combined sales  
of crestor nexium symbicort and atacand were 1133 million 
2009 872 million with crestor and nexium the second and ﬁfth 
largest prescription products in canada by sales an established 
product in the canadian marketplace crestor sales grew by 25 
to 600 million 2009 434 million despite limited formulary 
access nexium sales reached 271 million 2009 217 million 
representing yearonyear growth of 13
the canadian provinces continue to adopt provincial and regional 
approaches to pharmaceutical funding from one end of the 
continuum in quebec with more open access to more restricted 
access in british columbia in 2010 there was a reduction in 
generic prices led by ontario and changes to the pharmacy 
reimbursement model overall the trend in canada indicates  
that provinces will continue to introduce policy changes that drive 
cost savings while providing reasonable patient access to 
innovative medicines
japan
sales in japan increased by 4 to 2617 million 2009 2367 million 
strong volume gains of 7 3 were driven mainly by the continued 
growth of crestor and losec as well as the launch of symbicort 
turbuhaler which is copromoted with astellas by the end of 2010 
symbicort turbuhaler had a 14 share by volume of the market for 
inhaled corticosteroidbetaagonists astrazeneca’s oncology 
business remains one of the leaders in japan and delivered growth 
from iressa 8 arimidex 4 and zoladex 1 partially 
offset by the decline of casodex 19 which has faced generic 
competition since 2009 this was achieved despite the biennial 
reimbursement price reductions by the ministry of health labour 
and welfare which were imposed in april 2010 as expected  
the price reductions were accompanied by the introduction of a 
new system to exempt certain products from the biennial price 
reductions the system was introduced on a temporary basis linked 
to industry and company commitments to seek registration for 
products and indications not currently available in japan
other established row
sales in other established row showed robust growth of 6 to 
1049 million 2009 853 million doubledigit volume growth in 
australia for our key products was partially offset by price cuts 
imposed in april 2010 on crestor and nexium crestor continued to 
perform particularly strongly and had a 22 volume share in the 
australian statin market
emerging markets
in the emerging markets sales increased by 16 to 5198 million 
2009 4352 million accounting for nearly 57 of total sales 
growth outside the us this was driven by growth in china and 
latin america
in many of the larger markets such as brazil and mexico patients 
tend to pay directly for prescription medicines and consequently 
these markets are at less risk of direct government interventions on 
pricing and reimbursement in other markets such as south korea 
taiwan and turkey where governments do pay for medicines we 
are seeing the introduction of measures to reduce the cost of 
prescriptions in line with the systems in europe canada and 
australia
emerging europe
sales in emerging europe were up 6 to 1165 million 2009 
1091 million driven by increased sales in russia and romania 
which more than offset a reduction in sales in turkey
we have continued to build our presence in russia where sales 
were up 26 to 232 million 2009 180 million mainly driven by 
sales of zoladex 38 symbicort 41 nexium 109 and 
crestor 43
astrazeneca annual report and form 20f information 2010
additional information financial statements corporate governance overview business review
geographical review 73 in romania we delivered a strong performance with sales up  
36 to 119 million 2009 92 million this was driven by sales of 
crestor 41 seroquel 48 and symbicort 97 in 2010 the 
government imposed a claw back system to ﬁnance the healthcare 
budget deﬁcit in addition the government imposed extended 
payment terms for distributors to drug manufacturers
in late 2009 the turkish government imposed unprecedented levels 
of price reductions on the pharmaceutical industry as a result our 
2010 sales were down 13 to 304 million 2009 339 million 
despite an underlying 49 volume growth
china
in 2010 our business in china excluding hong kong increased by 
28 to 1047 million 2009 811 million becoming astrazeneca’s 
eighth market to pass the 1 billion mark we continue to be one of 
the fastest growing multinational pharmaceutical companies in 
china and the second largest in the prescription market by value 
crestor symbicort nexium iv and betaloc zok selokentoprolxl 
were listed on the national reimbursement drug list in november 
2009 and provincial level listings are being ﬁnalised 
emerging asia paciﬁc
sales in emerging asia paciﬁc showed strong growth of 7 to  
890 million 2009 780 million this was driven by doubledigit 
sales growth in south korea india malaysia and vietnam growth 
was more subdued in markets which were more signiﬁcantly 
impacted by government interventions on pricing or by measures 
which promoted local generic penetration primarily in taiwan 
thailand the philippines and indonesia
other emerging row
in latin america sales were up 19 to 1391 million 2009  
1118 million mainly due to continued sales growth in brazil and 
mexico in brazil our overall sales grew by 17 to 605 million 
2009 457 million atacand crestor nexium and seroquel 
showed strong performance with overall sales up 28 to  
314 million 2009 216 million seroquel was our number one 
prescription product with sales up 34 to 103 million 2009  
68 million followed by crestor with overall sales up 33 to 
102 million 2009 67 million 
sales in mexico were strong increasing by 17 to 325 million 
2009 261 million overall sales of atacand crestor nexium 
symbicort and seroquel were up 33 to 140 million 2009 
100 million nexium increased sales by 35 to 58 million 2009 
41 million overall sales of crestor were up 37 to 38 million 
2009 27 million
in the middle east and africa we further accelerated our growth 
with sales up 28 and continued to gain market share by value  
in the region our largest markets in the region were saudi arabia 
the united arab emirates and egypt and growth in 2010 has mainly 
been driven by maghreb in south africa sales were up 15  
mainly driven by growth of symbicort 22 seroquel 29 
and crestor 27
astrazeneca annual report and form 20f information 2010 74 geographical review
geographical review astra tech
astra tech ab astra tech is engaged in the research 
development manufacture and marketing of dental implants and 
medical devices for use primarily in urology and surgery astra tech 
has two main business divisions astra tech dental which is 
responsible for the odontology area of the business and astra tech 
healthcare which is responsible for the urology and surgery areas 
of the business astra tech has a leading position in several 
countries in europe and is expanding its operations in key markets 
particularly in russia the us japan and emerging asia paciﬁc
all product lines showed continued good sales growth in 2010 
despite the current economic downturn the dental implant  
market is estimated to have grown by 3 during 2010 and astra 
tech dental grew its implant sales and increased its market share  
in several key markets the downturn in the world economy  
has had no signiﬁcant impact on the market for astra tech 
healthcare products
since astra tech’s acquisition of atlantis components inc atlantis 
in 2007  astra tech has introduced the atlantis product range into 
most european markets and the market response has been very 
favourable the european manufacturing facility for atlantis 
products which astra tech opened in late 2008 is now in full 
operation meeting an increasing demand from the european 
market the acquisition of atlantis has given astra tech a strong 
platform for development within digital dentistry offering an 
important opportunity for continued growth for the dental implants 
product line
major investments have been made in new production equipment 
for the manufacturing of new lofric catheter products which were 
launched in the ﬁrst quarter of 2010
the astra tech training and education programme has been further 
developed and in combination with its stateoftheart centre for 
training and education at its headquarters advanced international 
education programmes and seminars are continuously being 
offered to existing and potential customers further investments 
have been made in rd clinical research and new production 
facilities to strengthen the product portfolio
in november astrazeneca formally commenced a review of its 
strategic options for astra tech astrazeneca continues to evaluate 
all alternatives for value maximisation from this business and any 
ﬁnal decision will only be made when the results of the review have 
concluded during the period of this review astrazeneca remains 
committed to supporting astra tech’s business customers and 
stakeholders
aptium oncology 
for more than 25 years aptium oncology inc aptium oncology 
has been developing and managing hospitalbased outpatient 
cancer centres in the us ownership of aptium oncology provides 
astrazeneca with a unique window into the provider sector of the 
us oncology market and access to a network of over 140 doctors 
who can help to shape early phase drug development decisions it 
is also involved in clinical study delivery for a number of our pipeline 
products and provides scientiﬁc advice and staff training for 
oncology teams
in 2010 aptium oncology continued to reﬁne its business model to 
adapt to the everchanging dynamics of the us healthcare industry 
while continuing to perform well in its cancer centre management 
business with positive proﬁt and cash ﬂow contributions it remains 
focused on growth and its consultancy business continues to lay 
the groundwork for new management relationships for example  
in the second quarter of 2010 aptium oncology entered into a  
longterm management agreement with beth israel medical center 
in new york a member of the continuum health network to 
manage its west side cancer center
clinical research is an integral part of care delivery at aptium 
oncology’s cancer centres and an area of strategic strength for the 
company in addition to aptium oncology’s gastrointestinal cancer 
consortium which has been successful in bringing together eight 
leading us academic institutions to speed up the process of ﬁnding 
and testing active new compounds for patients with gastrointestinal 
cancers aptium oncology created a similar consortium in 2010 
focused on multiple myeloma
other businesses
our ﬁnancial performance
world us western europe established row emerging markets prior year
2010
sales
m
reported
growth 

cer 
growth 

sales
m
reported
growth 

sales
m
reported 
growth 

cer
growth 

sales
m
reported
growth 

cer 
growth 

sales
m
reported
growth 

cer
growth 

world
sales 
m
aptium 
oncology 219 44 44 219 44 ––– ––– ––– 393
astra tech 535 6 7 101 22 393 2 4 38 6 3 3 200 100 506
total 754 16 15 320 33 393 2 4 38 6 3 3 200 100 899
2009
aptium 
oncology 39 3 1 1 39 3 1 ––– ––– ––– 395
astra tech 506 4 2 83 4 386 6 2 36 10 20 1 – – 529
total 899 3 1 476 – 386 6 2 36 10 20 1 – – 924
astrazeneca annual report and form 20f information 2010
additional information financial statements corporate governance overview business review
other businesses 75   what is being 
done to improve 
health in china
astrazeneca is one of the country’s fastest growing 
multinational pharmaceutical companies at present 
most of our business comes from big hospitals in 200 of 
the largest cities that have a population of more than one 
million we are investing to improve our sales capabilities 
in these and in a further 100 large cities
at the same time nearly 900 million people live outside 
big cities and the chinese government is investing 
125 billion between 2009 and 2011 to support 
healthcare reform by expanding basic healthcare 
insurance and upgrading community and rural hospitals 
we have plans to build a sustainable business in this 
broader market
we are also supporting the chinese ministry of health in 
improving patient health with an innovative programme to 
increase the capacity of community healthcare services 
by strengthening the training of general practitioners in 
collaboration with the china medical association which 
will be providing the training astrazeneca is sponsoring 
a threeyear programme it will help train some 30000 
community general practitioners so that they can better 
treat some common chronic diseases
because health connects us all
for more information go to the geographical review 
from page 70 how did the 
business perform 
ﬁnancially in 2010
our performance  
in 2010 underlines 
the resilience  
and strength of 
astrazeneca’s 
business
astrazeneca annual report and form 20f information 2010 78 financial review astrazeneca annual report and form 20f information 2010         our performance 
in 2010 enabled us to 
deliver increased 
earnings increase the 
dividend and return 
residual cash to 
shareholders through 
share repurchases
contents
79 introduction 
80 measuring performance
81 2010 business background and results overview
82  results of operations – summary analysis of year  
to 31 december 2010
84 cash ﬂow and liquidity – 2010
85 financial position – 2010
86 capitalisation and shareholder return
87 future prospects
87  results of operations – summary analysis of year  
to 31 december 2009
89 cash ﬂow and liquidity – 2009
89 financial position – 2009
90 financial risk management
90 critical accounting policies and estimates
93 sarbanesoxley act section 404
despite government pricing pressures and anticipated patent 
expiries in the us and western europe revenue in 2010 remained in 
line with the prior year in constant currency terms as a result of an 
excellent performance for key brands and continued growth in 
emerging markets
core operating proﬁt was also unchanged in constant currency 
terms core earnings per share increased by 5 beneﬁting from 
lower net ﬁnance expense a lower tax rate and fewer shares 
outstanding as a result of share repurchases
our extensive efforts to reshape the cost base to maintain 
competitiveness continue the ﬁrst phase of our restructuring 
programme is now complete and it has delivered exactly as 
planned we have achieved annual beneﬁts of 24 billion by the 
end of 2010 at a total programme cost of 25 billion incurred over 
the 2007 to 2009 period the second phase of restructuring 
announced in january 2010 is expected to deliver a further  
19 billion in annual beneﬁts by the end of 2014 at a planned  
cost of 20 billion of which 12 billion was charged in 2010
our cash generation remains strong enabling us to invest for future 
growth and value by funding research and development and capital 
expenditures while also providing 55 billion in cash returns to 
shareholders by way of dividends and share repurchases a nearly 
twofold increase compared with 2009
driving operating execution in line with our midterm planning 
assumptions for revenue and prerd operating margin will 
generate the requisite cash ﬂow to provide for the needs of the 
business while providing attractive shareholder returns as 
evidenced by the 11 increase in the dividend for 2010 and the 
planned 4 billion in net share repurchases for 2011
simon lowth 
chief financial ofﬁcer
astrazeneca annual report and form 20f information 2010
additional information financial statements corporate governance overview business review
financial review introduction 79
financial review the purpose of this financial review is to provide a balanced and comprehensive analysis of the 
ﬁnancial performance of the business during 2010 the ﬁnancial position as at the end of the year  
and the main business factors and trends which could affect the future ﬁnancial performance of  
the business
all growth rates in this financial review are expressed at constant exchange rates unless noted otherwise
measuring performance 
the following measures are referred to when reporting on our 
performance both in absolute terms but more often in comparison 
to earlier years in this financial review
  reported performance reported performance takes into 
account all the factors including those which we cannot 
inﬂuence principally currency exchange rates that have 
affected the results of our business as reﬂected in our group 
financial statements prepared in accordance with ifrs as 
adopted by the eu and as issued by the iasb 
  core ﬁnancial measures these are nongaap measures 
because unlike reported performance they cannot be 
derived directly from the information in the group’s financial 
statements these measures are adjusted to exclude certain 
signiﬁcant items such as charges and provisions related to 
our global restructuring programmes amortisation and 
impairment of the signiﬁcant intangibles relating to the 
acquisition of medimmune in 2007  the amortisation and 
impairment of the signiﬁcant intangibles relating to our current 
and future exit arrangements with merck in the us and other 
speciﬁed items see the 2010 reconciliation of reported 
results to core results table on page 82 for a reconciliation of 
reported to core performance 
  constant exchange rate cer growth rates these are also 
nongaap measures these measures remove the effects of 
currency movements by retranslating the current year’s 
performance at previous year’s exchange rates and adjusting 
for other exchange effects including hedging a reconciliation 
of the reported results adjusted for the impact of currency 
movements is provided in the 2010 reported operating proﬁt 
table on page 82 
  core prerd operating margin this is a nongaap measure 
of our core ﬁnancial performance a reconciliation of core 
prerd operating margin to our operating proﬁt is provided 
on pages 82 and 88
  gross margin and operating proﬁt margin percentages these 
measures set out the progression of key performance margins 
and demonstrate the overall quality of the business 
  prescription volumes and trends for key products these 
measures can represent the real business growth and the 
progress of individual products better and more immediately 
than invoiced sales 
  net fundsdebt this represents our cash and cash 
equivalents current investments and derivative ﬁnancial 
instruments less interestbearing loans and borrowings 
cer measures allow us to focus on the changes in sales and 
expenses driven by volume prices and cost levels relative to the 
prior period sales and cost growth expressed in cer allows 
management to understand the true local movement in sales and 
costs in order to compare recent trends and relative return on 
investment cer growth rates can be used to analyse sales in a 
number of ways but most often we consider cer growth by 
products and groups of products and by countries and regions 
cer sales growth can be further analysed into the impact of sales 
volumes and selling price similarly cer cost growth helps us to 
focus on the real local change in costs so that we can manage the 
cost base effectively
we believe that disclosing core ﬁnancial and growth measures in 
addition to our reported ﬁnancial information enhances investors’ 
ability to evaluate and analyse the underlying ﬁnancial performance 
of our ongoing business and the related key business drivers  
the adjustments made to our reported ﬁnancial information in 
order to show core ﬁnancial measures illustrate clearly and on  
a yearonyear or periodbyperiod basis the impact upon our 
performance caused by factors such as changes in sales and 
expenses driven by volume prices and cost levels relative to  
such prior years or periods
further as shown in the 2010 reconciliation of reported results  
to core results table on page 82 our reconciliation of reported 
ﬁnancial information to core ﬁnancial measures includes a 
breakdown of the items for which our reported ﬁnancial 
information is adjusted and a further breakdown of those items  
by speciﬁc line item as such items are reﬂected in our reported 
income statement to illustrate the signiﬁcant items that are 
excluded from core ﬁnancial measures and their impact on our 
reported ﬁnancial information both as a whole and in respect  
of speciﬁc line items
core prerd operating margin is our operating margin before 
research and development costs recorded in the year this 
measure reﬂects core operating performance before reinvestment 
in internal research and development
management presents these results externally to meet investors’ 
requirements for transparency and clarity core ﬁnancial measures 
are also used internally in the management of our business 
performance in our budgeting process and when determining 
compensation
core ﬁnancial measures are nongaap adjusted measures all 
items for which core ﬁnancial measures are adjusted are included 
in our reported ﬁnancial information because they represent 
actual costs of our business in the periods presented as a result 
core ﬁnancial measures merely allow investors to differentiate 
between different kinds of costs and they should not be used in 
isolation you should also refer to our reported ﬁnancial 
information in the 2010 reported operating proﬁt table on page 82 
our reconciliation of core ﬁnancial measures to reported ﬁnancial 
information in the reconciliation of reported results to core results 
table on page 82 and to the results of operations – summary 
analysis of year to 31 december 2009 section from page 87 for 
our discussion of comparative reported growth measures that 
reﬂect all of the factors that affect our business our determination 
of nongaap measures together with our presentation of them 
within this ﬁnancial information may differ from similarly titled 
nongaap measures of other companies
the set retains strategic management of the costs excluded  
from reported ﬁnancial information in arriving at core ﬁnancial 
measures tracking their impact on reported operating proﬁt  
and eps with operational management being delegated on a 
casebycase basis to ensure clear accountability and consistency 
for each cost category 
astrazeneca annual report and form 20f information 2010 80 financial review measuring performance
financial review 2010 business background and results overview
the business background is covered in the our marketplace 
section the therapy area review and the geographical review 
and describes in detail the developments in both our products  
and geographical regions 
as described earlier in our annual report sales of our products are 
directly inﬂuenced by medical need and are generally paid for by 
health insurance schemes or national healthcare budgets our 
operating results can be affected by a number of factors other than 
the delivery of operating plans and normal competition such as
  the adverse impact on pharmaceutical prices as a result of the 
macroeconomic and regulatory environment for instance 
although there is no direct governmental control on prices in the 
us action from federal and individual state programmes and 
health insurance bodies is leading to downward pressures on 
realised prices in other parts of the world there are a variety of 
price and volume control mechanisms and retrospective rebates 
based on sales levels that are imposed by governments in 2010 
we saw the introduction of the us healthcare reform legislation 
and government imposed price reductions in western europe as 
detailed in the pricing pressure section from page 11
  the risk of generic competition following loss of patent protection 
or patent expiry or an ‘at risk’ launch by a competitor with the 
potential adverse effects on sales volumes and prices for 
example in 2010 our performance was affected by generic 
competition in the us for arimidex pulmicort respules and 
toprolxl further details of the impact of patent expiry on our 
revenue streams are included in the patent expiries section on 
page 31
  the timings of new product launches which can be inﬂuenced  
by national regulators and the risk that such new products do not 
succeed as anticipated together with the rate of sales growth  
and costs following new product launches 
  currency ﬂuctuations our functional and reporting currency  
is the us dollar but we have substantial exposures to other 
currencies in particular the euro japanese yen pound sterling 
and swedish krona 
  macro factors such as greater demand from an ageing population 
and increasing requirements of servicing emerging markets 
over the longer term the success of our rd is crucial and we 
devote substantial resources to this area the beneﬁts of this 
investment emerge over the long term and there is considerable 
inherent uncertainty as to whether and when it will generate  
future products
the most signiﬁcant features of our ﬁnancial results in 2010 are
  reported revenue of 33269 million was unchanged reported 
up 1
  strong revenue growth in markets outside the us broadly offset 
the loss of more than 16 billion of revenue in the us from 
generic competition on several products and the absence of 
h1n1 pandemic inﬂuenza vaccine revenue 
  strong doubledigit sales growth at cer for crestor symbicort 
and seroquel xr crestor and seroquel franchise sales now 
exceed 5 billion each for the full year 
  revenue in emerging markets grew to over 51 billion a 16 
increase reported 19 sales in china increased to over  
10 billion
  core operating proﬁt for the full year was unchanged on both a 
reported and a cer basis at 13603 million operating proﬁt 
decreased by 1 reported unchanged 
  excluded from core results were speciﬁc legal provisions of  
612 million which impacted reported results in the year mainly 
in respect of the ongoing seroquel product liability litigation and 
state attorney general investigations into sales and marketing 
practices and a gain of 791 million arising from changes made 
to beneﬁts under certain of the group’s postretirement plans 
chieﬂy the group’s uk pension plan  
  basic eps of 560 represented an increase of 7  
reported 8 core eps for the full year increased by 5  
to 671 reported 6 
  net cash inﬂow from operating activities was 10680 million 
2009 11739 million 
  dividends paid increased to 3361 million 2009 2977 million 
  net funds at 31 december were 3653 million an improvement 
of 3118 million on 535 million in the previous year 
  total restructuring costs associated with the global programme to 
reshape the cost base of the business were 1202 million in 2010 
2009 659 million this brings the total restructuring costs 
charged to date to 3708 million
 
astrazeneca annual report and form 20f information 2010
additional information financial statements corporate governance overview business review
financial review 2010 business background and results overview 81 results of operations – summary analysis of year to 31 december 2010
2010 reported operating proﬁt
2010 2009 percentage of sales 2010 compared with 2009
reported
m
cer
growth
m
growth
due to
exchange
effects
m
reported
m
reported
2010 

reported
2009 

cer 
growth

reported
growth 

revenue 33269 164 301 32804 –1
cost of sales 6389 497 117 5775 192 176 9 11
gross proﬁt 26880 333 184 27029 808 824 1 1
distribution costs 335 31 6 298 10 09 10 12
research and development 5318 871 38 4409 160 135 20 21
selling general and administrative costs 10445 955 68 11332 314 345 8 8
other operating income and expense 712 159 – 553 21 17 29 29
operating proﬁt 11494 121 72 11543 345 352 1 –
net ﬁnance expense 517 736
proﬁt before tax 10977 10807
taxation 2896 3263
proﬁt for the period 8081 7544
basic earnings per share  560 519
2010 core operating results
2010 2009 2010 compared with 2009
core
m
cer
growth
m
growth 
due to
exchange
effects 
m
core
m
cer 
growth 

total
core
growth 

gross margin 27024 386 193 27217 1 1
distribution costs 335 30 7 298 10 12
research and development 4219 176 61 4334 4 3
selling general and administrative costs 9777 190 77 9890 2 1
other operating income and expense 910 16 – 926 2 2
operating proﬁt 13603 66 48 13621 ––
net ﬁnance expense 517 736
proﬁt before tax 13086 12885
taxation 3416 3703
proﬁt for the period 9670 9182
basic earnings per share  671 632
2010 reconciliation of reported results to core results
merck  medimmune
2010
reported
m
restructuring
costs
m
amortisation 
m
intangible
impairments
m
legal 
provisions
m
post
retirement
plan
amendments
m
2010 core
m
gross margin 26880 144–––– 27024
distribution costs 335 – – – – – 335
research and development 5318 654 – 445 – – 4219
selling general and administrative costs 10445 404 443 – 612 791 9777
other operating income and expense 712– 75 123–– 910
operating proﬁt 11494 1202 518 568 612 791 13603
add back research and development 5318 654 – 445 – – 4219
prerd operating margin 16812 548 518 123 612 791 17822
net ﬁnance expense 517 ––––– 517
proﬁt before tax 10977 1202 518 568 612 791 13086
taxation 2896 317 100 150 162 209 3416
proﬁt for the period 8081 885 418 418 450 582 9670
basic earnings per share  560 062 029 029 031 040 671
astrazeneca annual report and form 20f information 2010 82 financial review results of operations – summary analysis of year to 31 december 2010
financial review revenue was unchanged reported up 1 revenue beneﬁted 
from strong growth of crestor symbicort and seroquel offset by 
lower revenues for pulmicort arimidex and casodex and the 
absence of h1n1 vaccine revenue emerging markets sales growth 
of 16 reported 19 and established row 7 reported 17 
was offset by a decline in us sales of 7 reported 7 with sales 
in western europe up 2 reported down 1 further details of 
our sales performance are contained in the performance 2010 
sections of the therapy area review from page 50 and the 
geographical review from page 70
core gross margin of 812 declined 16 percentage points 
reported 18 percentage points the impairment of lesogaberan 
azd3355 the 2009 beneﬁt from the release of a provision with 
respect to the resolution of an issue related to a third party supply 
contract higher royalties and adverse regional and product mix 
were only partially offset by lower payments to merck
core rd expenditure was 4219 million 4 lower than last year 
reported 3 increased investment in biologics was more than 
offset by lower project costs and operational efﬁciencies the lower 
project costs are the result of several late stage projects completing 
their trials partially offset by the commencement of phase iii 
programmes for tc5214 and fostamatinib 
core sga costs of 9777 million were 2 lower than the previous 
year reported 1 investment in emerging markets and recently 
launched brands were more than offset by operational efﬁciencies 
across established markets
core other income of 910 million was 16 million less than the 
previous year 2009 beneﬁted from disposal gains related to 
abraxane
tm
 and the nordic otc business and 2010 included 
royalties from sales of teva’s generic version of pulmicort respules
core prerd operating margin was 535 down 10 percentage 
points reported 12 percentage points with the lower gross 
margin only partially offset by efﬁciencies within selling general and 
administrative areas
core operating proﬁt was 13603 million unchanged at cer core 
operating margin declined by 04 percentage points to 408 with 
lower rd expense and operational efﬁciencies only partially 
offsetting the decline in the gross margin 
core earnings per share were 671 up 5 reported 6 with 
the operating performance boosted by lower net ﬁnance expense 
the beneﬁt of a lower average number of shares outstanding and a 
lower effective tax rate 
core adjustments were broadly in line with last year’s level with 
increased restructuring costs and intangible impairments offset by 
gains chieﬂy attributable to changes in the group’s uk pension 
arrangements excluded from core were 
  impairment charges of 568 million arising from impairments in 
respect of motavizumab 445 million and our hpv cervical 
cancer vaccine income stream 123 million both capitalised as 
part of the medimmune acquisition total impairment charges 
relating to intangible ﬁxed assets were 833 million in the year
  612 million of legal provision charges of which 592 million is in 
respect of the ongoing seroquel product liability litigation and 
state attorney general investigations into sales and marketing 
practices in aggregate in line with prior years these have been 
excluded from our core performance and full details of these 
matters are included in note 25 to the financial statements from 
page 178
  restructuring costs totalling 1202 million incurred as the group 
continues its previously announced efﬁciency programmes 
  amortisation totalling 518 million relating to assets capitalised as 
part of the medimmune acquisition and the merck exit 
arrangements 
  a credit of 791 million chieﬂy attributable to a curtailment gain 
related to changes made to beneﬁts under the group’s uk 
pension arrangements in 2010 we amended our uk deﬁned 
beneﬁt fund pensionable pay was frozen at its 30 june 2010 level 
but the deﬁned beneﬁt fund remains open to existing members 
members of the pension fund were given the option of remaining 
in the fund or leaving the fund those that chose to leave the fund 
were offered funding which they could contribute to a new group 
self invested personal pension plan this change to the uk 
deﬁned beneﬁt scheme represented an accounting curtailment  
of certain pension obligations and in accordance with ias 19 
‘employee beneﬁts’ these obligations were revalued by the 
scheme actuaries immediately prior to the curtailment and the 
assumptions updated at that date
operating proﬁt was down 1 at cer reported unchanged at 
11494 million basic earnings per share were 560 up 7 
reported 8 as a result of the factors affecting core earnings  
per share 
net ﬁnance expense was 517 million versus 736 million in 2009 
fair value gains of 5 million were recorded on the longterm bonds 
in the year versus fair value losses of 145 million for 2009 in 
addition to this there is reduced interest payable on lower debt 
balances and slightly increased returns from higher cash and cash 
equivalent balances
the 2010 taxation charge of 2896 million 2009 3263 million 
consists of a current tax charge of 3435 million 2009 3 105 million 
and a credit arising from movements on deferred tax of 539 million 
2009 charge of 158 million the current year tax charge includes 
a prior period current tax adjustment of 370 million 2009 251 
million relating mainly to an increase in provisions for tax 
contingencies and double tax relief partially offset by a beneﬁt of 
342 million arising from a number of tax settlements including the 
uk matters described in note 25 to the financial statements on 
page 195 and tax accrual to tax return adjustments the 2009 prior 
period current tax adjustments related mainly to tax accrual to tax 
return adjustments an increase in provisions in respect of a number 
of transfer pricing audits and double tax relief the effective tax rate 
for the year was 264 2009 302 288 excluding the impact of 
legal provisions a description of our tax exposures is set out in note 
25 to the financial statements on page 195  
total comprehensive income for the year increased by 616 million 
from 2009 this was driven by the increase in proﬁt for the year of 
537 million and an increase of 79 million in other comprehensive 
income
astrazeneca annual report and form 20f information 2010
additional information financial statements corporate governance overview business review
financial review results of operations – summary analysis of year to 31 december 2010 83 cash generated from operating activities was 10680 million in the 
year to 31 december 2010 compared with 11739 million in 2009 
the decline of 1059 million is primarily driven by legal settlements 
of 709 million relating to seroquel sales and marketing practices 
and product liability and average wholesale price litigation in the 
us and the ﬁrst instalment of 562 million £350 million in respect 
of the uk tax settlement for which the second instalment of £155 
million is due in march 2011
investments cash outﬂows of 2236 million include the acquisition 
of novexel 348 million the payment of 647 million to merck 
resulting in the group acquiring merck’s interest in certain 
astrazeneca products and a further 537 million paid out on other 
externalisation arrangements cash outﬂows on the purchase of 
tangible ﬁxed assets amounted to 791 million in the year further 
details of the novexel business acquisition and our arrangements 
with merck are included in note 22 and note 25 to the financial 
statements respectively
net cash distributions to shareholders increased from 2842 million 
in 2009 to 5471 million in 2010 through dividend payments of 
3361 million and net share repurchases of 2110 million
at 31 december 2010 outstanding gross debt interestbearing 
loans and borrowings was 9222 million 2009 11063 million 
the reduction in gross debt of 1841 million during the year was 
principally due to the repayment on maturity of euro bonds of euro 
500 million and euro 750 million the ﬁrst repayment was the euro 
500 million 18 month bond issued in july 2008 and maturing in 
january 2010 and the second was the euro 750 million 3 year bond 
issued in november 2007 and maturing in november 2010 of the 
gross debt outstanding at 31 december 2010 125 million is due 
within one year 2009 1926 million strong business cash ﬂows 
have improved net funds by 3118 million since 31 december 
2009 resulting in net funds of 3653 million at 31 december 2010
offbalance sheet transactions and commitments 
we have no offbalance sheet arrangements and our derivative 
activities are nonspeculative the table below sets out our 
minimum contractual obligations at the year end
cash ﬂow and liquidity – 2010 
all data in this section is on a reported basis 
net fundsdebt
2010
m
2009
m
2008
m
net fundsdebt brought forward at 1 january 535 7174 9112 
earnings before interest tax depreciation amortisation and impairment 14235 13630 11764 
movement in working capital and provisions 82 1329 210 
tax paid 2533 2381 2209 
interest paid 641 639 690 
other noncash movements 463 200 87 
net cash available from operating activities 10680 11739 8742 
purchase of intangibles net 1180 355 2944 
other capital expenditure net 708 824 1057 
acquisitions 348 – – 
investments 2236 1179 4001 
dividends 3361 2977 2739 
net share repurchasesissues 2110 135 451 
distributions 5471 2842 3190 
other movements 145 9 387 
net fundsdebt carried forward at 31 december 3653 535 7174 
comprised of
cash shortterm investments and derivatives net 12875 11598 4674 
loans and borrowings 9222 11063 11848
payments due by period
less than 
1 year 
m 
13 years 
m 
35 years 
m 
over
5 years 
m 
total 
m 
bank loans and other borrowings 646 2691 2532 10095 15964
operating leases 161 137 105 103 506
contracted capital expenditure 259 – – – 259
total 1066 2828 2637 10198 16729
astrazeneca annual report and form 20f information 2010 84 financial review cash ﬂow and liquidity – 2010
financial review financial position – 2010
all data in this section is on a reported basis
summary statement of ﬁnancial position
2010 
m
movement 
m
2009 
m
movement 
m
2008 
m
property plant and equipment 6957 350 7307 264 7043 
goodwill and intangible assets 22029 86 22115 82 22197 
inventories 1682 68 1750 114 1636 
trade and other receivables 7847 138 7709 448 7261 
trade and other payables 9034 103 8931 1604 7327
provisions 1938 252 1686 544 1142
net income tax payable 3855 1002 2853 885 1968 
net deferred tax liabilities 1670 285 1955 65 1890 
retirement beneﬁt obligations 2472 882 3354 622 2732
noncurrent other investments 211 27 184 28 156 
net fundsdebt 3653 3118 535 7709 7174 
    
net assets 23410 2589 20821 4761 16060 
in 2010 net assets increased by 2589 million to 23410 million 
the increase in net assets as a result of the group proﬁt of 8081 
million was offset by dividends of 3494 million and share 
repurchases of 2604 million shares issued in the year increased 
net assets by 494 million
property plant and equipment
property plant and equipment decreased by 350 million to 6957 
million additions of 808 million 2009 967 million were offset by 
depreciation of 1076 million 2009 893 million
goodwill and intangible assets
our goodwill of 9871 million 2009 9889 million principally 
arose on the acquisition of medimmune and on the restructuring  
of our us joint venture with merck in 1998 no goodwill has been 
capitalised in 2010 the movement of 18 million in 2010 being due 
to exchange rate movements
intangible assets amounted to 12158 million at 31 december 2010 
2009 12226 million intangible assets additions were 1791 million 
in 2010 2009 1003 million amortisation was 810 million 2009 
729 million and impairments totalled 833 million 2009 415 million 
additions to intangible assets in 2010 included 647 million paid to 
merck under preexisting arrangements under which merck’s 
interest in our products in the us will be terminated and 548 million 
from our acquisition of novexel of which 239 million of intangible 
assets acquired were subsequently sold to forest as detailed in 
note 22 to the financial statements 
intangible asset impairment charges recorded in 2010 included 
445 million following our decision to withdraw our fda biological 
license application for motavizumab detailed on page 156 and  
128 million related to our decision to discontinue further 
development of lesogaberan azd3355 the impairment balance 
also includes 123 million following reassessment of the licensing 
income generated by the hpv cervical cancer vaccine and  
126 million written off other products in development
receivables payables and provisions
exchange rate movements contributed 119 million of the overall 
increase of 138 million in receivables with an increase in the trade 
receivables balance being offset by a reduction on other receivables 
mainly due to a reduction in our seroquel related insurance 
receivable balance during the year trade and other payables 
increased by 103 million 
the movement in provisions of 252 million in 2010 includes  
1361 million of additional charges recorded in the year offset by 
1109 million of cash payments included within the 1361 million 
of charges in the year is 592 million in respect of the ongoing 
seroquel product liability litigation and state attorney general 
investigations into sales and marketing practices in aggregate and 
497 million for our global restructuring initiative further details of 
the charges made against our provisions are contained in notes  
17 and 25 to our financial statements cash payments of  
1109 million include 335 million against our global restructuring 
initiative and 709 million related to legal provisions
tax payable and receivable
net income tax payable has increased by 1002 million to  
3855 million principally due to an increase in accruals for tax 
contingencies cash tax timing differences and exchange rate 
movements tax receivable largely comprises tax owing to 
astrazeneca from certain governments expected to be received on 
settlements of transfer pricing audits and disputes see note 25 to 
the financial statements on page 195 net deferred tax liabilities 
reduced by 285 million in the year this movement includes a 
reclassiﬁcation from deferred tax to current tax of amounts provided 
in relation to tax contingencies for prior periods
retirement beneﬁt obligations
net retirement beneﬁt obligations reduced by 882 million 
principally as a result of recognising a gain of 791 million arising 
from changes made to beneﬁts under certain of the group’s  
postretirement beneﬁts plans chieﬂy the group’s uk pension  
plan detailed on page 162 in 2010 approximately 965 of the 
group’s obligations were concentrated in the uk the us sweden 
and germany 
commitments and contingencies
the group has commitments and contingencies which are 
accounted for in accordance with the accounting policies described 
in the financial statements in the group accounting policies section 
from page 142 the group also has taxation contingencies these 
are described in the taxation section in the critical accounting 
policies and estimates section on page 93 these matters are 
explained fully in note 25 to the financial statements from page 178 
astrazeneca annual report and form 20f information 2010
additional information financial statements corporate governance overview business review
financial review financial position – 2010 85 research and development collaboration payments
details of future potential research and development collaboration 
payments are also included in note 25 to the financial statements 
from page 178 as detailed in note 25 payments to our collaboration 
partners may not become payable because of the inherent 
uncertainty in achieving the development and revenue milestones 
linked to the future payments as part of our overall externalisation 
strategy we may enter into further collaboration projects in the 
future that may include milestone payments and therefore as 
certain milestone payments fail to crystallise due to for example 
development not proceeding they may be replaced by potential 
payments under new collaborations
investments divestments and capital expenditure 
as detailed earlier in research and development from page 26 
astrazeneca views collaborations including externalisation 
arrangements in the ﬁeld of research and development as a crucial 
element of the development of our business
the group has completed over 80 major externalisation 
transactions over the past three years one of which was a  
business acquisition and all others were strategic alliances and 
collaborations details of our signiﬁcant externalisation transactions 
are given below the group determines these to be signiﬁcant using 
a range of factors we look at the speciﬁc circumstances of the 
individual externalisation arrangement and apply several quantitative 
and qualitative criteria because we consider our externalisation 
strategy to be an extension of our research and development 
strategy the expected total value of development payments under 
the transaction and its proportion in our annual rd spend both of 
which are proxies for overall research and development effort and 
cost are important elements of the signiﬁcance determination 
other quantitative criteria we apply include without limitation 
expected levels of future sales the possible value of milestone 
payments and the resources used for commercialisation activities 
for example the number of staff qualitative factors we consider in 
our determination of whether an externalisation arrangement is 
signiﬁcant include without limitation new market developments 
new territories new areas of research and strategic implications
based on the application of the quantitative and qualitative factors 
described above we have determined that the following two 
externalisation arrangements are signiﬁcant
  in january 2007  astrazeneca signed an exclusive co
development and copromotion agreement with bms for the 
development and commercialisation of saxagliptin a dipeptidyl 
peptidase iv inhibitor dppiv for the treatment of type 2 
diabetes and dapagliﬂozin a selective sodiumglucose co
transporter 2 sglt2 inhibitor the agreement is global with the 
exception of japan for saxagliptin under each agreement the 
two companies jointly develop the clinical and marketing strategy 
and share development and commercialisation expenses on a 
global basis to date astrazeneca has made upfront and 
milestone payments totalling 300 million for saxagliptin and  
50 million for dapagliﬂozin and may make future milestone 
payments of 350 million on dapagliﬂozin contingent on 
achievement of regulatory milestones and launch in key markets 
following launch proﬁts and losses globally are shared equally 
and an additional 300 million of salesrelated payments for each 
product may be triggered based on worldwide sales success 
the group made milestone payments to bms of 50 million in 
2010 150 million in 2009 and 50 million in 2008
  in december 2009 astrazeneca and targacept entered into an 
inlicence agreement for astrazeneca to obtain exclusive global 
development and commercialisation rights to targacept’s 
investigational product for major depressive disorder mdd 
tc5214 tc5214 which recently completed a phase iib clinical 
trial is a nicotinic channel blocker that is thought to treat 
depression by modulating the activity of various neuronal nicotinic 
receptor nnr subtypes under the deal astrazeneca made an 
upfront payment of 200 million and may make milestone 
payments to a maximum of 540 million up to launch in addition 
targacept will be entitled to receive royalties on worldwide 
product sales and additional milestone payments linked to 
worldwide product sales 
details of our business acquisitions in the last three years are 
contained in note 22 to the financial statements from page 167 
in aggregate milestones capitalised under the group’s other 
externalisation arrangements totalled 337 million in 2010 306 
million in 2009 and 62 million in 2008 and the group recognised 
other income in respect of other externalisation arrangements 
totalling 82 million in 2010 440 million in 2009 and 216 million  
in 2008
capitalisation and shareholder return
dividend for 2010
 pence sek payment date
first interim dividend 070 449 512 130910 
second interim dividend 185 1167 1199 140311
total 255 1616 1711
summary of shareholder distributions
shares 
repurchased 
million
cost 
m
dividend per
share

dividend 
cost 
m
shareholder
distributions
m 
2000 94 352 070 1236 1588 
2001 235 1080 070 1225 2305 
2002 283 1190 070 1206 2396 
2003 272 1154 0795 1350 2504 
2004 501 2212 094 1555 3767 
2005 677 3001 130 2068 5069 
2006 722 4147 172 2649 6796 
2007 799 4170 187 2740 6910 
2008 136 610 205 2971 3581 
2009 – – 230 3339 3339 
2010 537 2604 255 3617
1
 6221
total 4256 20520 15625 23956 44476
1
 total dividend cost estimated based upon number of shares in issue at 31 december 2010
astrazeneca annual report and form 20f information 2010 86 financial review capitalisation and shareholder return
financial review results of operations – summary analysis of year to 31 december 2009
2009 reported operating proﬁt 
2009 2008 percentage of sales 2009 compared with 2008
 
reported 
m 
cer 
growth 
m 
growth 
due to
exchange
effects 
m 
reported 
m 
reported 
2009 
 
reported 
2008 
 
cer 
growth
  
reported
growth 
 
revenue 32804 2317 1114 31601 7 4 
cost of sales 5775 540 283 6598 176 209 8 12 
gross proﬁt 27029 2857 831 25003 824 791 11 8 
distribution costs 298 37 30 291 09 09 13 3 
research and development 4409 298 472 5179 135 164 6 15 
selling general and administrative costs 11332 945 526 10913 345 346 9 4 
other operating income and expense 553 33 4 524 17 17 6 6 
operating proﬁt 11543 2206 193 9144 352 289 24 26 
net ﬁnance expense 736  463  
proﬁt before tax 10807  8681  
taxation 3263  2551  
proﬁt for the period 7544  6130  
basic earnings per share  519 420 
capitalisation
the total number of shares in issue at 31 december 2010 was 
1409 million 118 million shares were issued in consideration  
of share option exercises for a total of 494 million share 
repurchases amounted to 537 million ordinary shares at a cost  
of 2604 million shareholders’ equity increased by a net  
2553 million to 23213 million at the year end noncontrolling 
interests increased to 197 million 2009 161 million
dividend and share repurchases
in recognition of the group’s strong balance sheet sustainable 
signiﬁcant cash ﬂow and the board’s conﬁdence in the strategic 
direction and longterm prospects for the business the board has 
adopted a progressive dividend policy intending to maintain or 
grow the dividend each year
the board has recommended an 8 increase in the second interim 
dividend to 185 1167 pence 1199 sek to be paid on 14 march 
2011 this brings the full year dividend to 255 1616 pence  
17 11 sek an increase of 11
in 2010 the group recommenced its share repurchase  
programme the group completed net share repurchases of  
2110 million in 2010 the board has announced that the group 
intends to complete net share repurchases in the amount of  
4 billion during 2011
in setting the distribution policy and the overall ﬁnancial strategy the 
board’s aim is to continue to strike a balance between the interests 
of the business our ﬁnancial creditors and our shareholders after 
providing for business investment funding the progressive dividend 
policy and meeting our debt service obligations the board will keep 
under review the opportunity to return cash in excess of these 
requirements to shareholders through periodic share repurchases
future prospects 
as described earlier in our annual report the coming years will be 
challenging for the industry and for astrazeneca as its revenue base 
transitions through a period of exclusivity losses and new product 
launches astrazeneca makes high level planning assumptions for 
revenue evolution margins cash ﬂow and business reinvestment to 
help guide the management of the business the planning outlook 
extends to 2014 astrazeneca assumes that the global 
biopharmaceutical industry can grow at least in line with real gdp 
over the planning horizon while downward pressure on revenue 
from government interventions in the marketplace remains a 
continuing feature of the challenging market environment 
astrazeneca’s assessment remains that as yet these have not 
risen to a “stepchange” in trend the assumptions for revenue 
margins and cash ﬂow assume no material mergers acquisitions or 
disposals in addition our plans assume no premature loss of 
exclusivity for key astrazeneca products it was also assumed that 
exchange rates for our principal currencies will not differ materially 
from the average rates that prevailed during january 2010 and 
astrazeneca sees no basis for material changes to exchange rate 
assumptions 
it is expected that revenue growth from key franchises that retain 
exclusivity and continued growth in emerging markets will be 
pressured by the loss of market exclusivity on a number of 
products revenue for 2011 will continue to be affected by the loss 
of market exclusivity for arimidex in the us and for arimidex 
in europe and in established row once exclusivity expires in 
february 2011 the extent of generic competition to nexium 
in europe is another variable that could inﬂuence 2011 revenue 
over the last several years the group has undertaken signiﬁcant 
restructuring initiatives aimed at reshaping the cost base to improve 
longterm competitiveness the ﬁrst phase of the restructuring 
programme is now complete at a cumulative cost of 25 billion 
the second phase of restructuring which was announced in 
january 2010 is comprised of a signiﬁcant change programme  
in rd as well as additional productivity improvement initiatives in  
the supply chain and sga of the estimated 20 billion in costs 
anticipated for this phase of the programme 12 billion was 
charged in 2010 the remainder will largely be taken in 2011 this 
programme will deliver annual beneﬁts to the group by 2014 
planning assumptions remain that continued productivity 
improvements including successful completion of restructuring 
initiatives will aid the achievement of levels of revenue and margins 
to generate the requisite operating cash ﬂow over the planning 
period to support the reinvestment needs of the business debt 
service obligations and shareholder distributions 
astrazeneca annual report and form 20f information 2010
additional information financial statements corporate governance overview business review
financial review future prospects 87 2009 core operating results
2009 2008 2009 compared with 2008
core
m
cer
growth
m
growth 
due to
exchange
effects 
m
core
m
cer 
growth 

total
core
growth 

gross margin 27217 2660 851 25408 10 7 
distribution costs 298 37 30 291 13 3 
research and development 4334 150 469 4953 3 13 
selling general and administrative costs 9890 452 502 9940 5 1 
other operating income and expense 926 194 2 734 26 26 
operating proﬁt 13621 2515 148 10958 23 24 
net ﬁnance expense 736 463 
proﬁt before tax 12885   10495 
taxation 3703 3056 
proﬁt for the period 9182 7439 
basic earnings per share  632 510 
2009 reconciliation of reported results to core results
merck  medimmune
2009
reported
m
restructuring
costs
m
amortisation 
m
intangible
impairments
m
legal 
provisions
m
2009 core
m
gross margin 27029 188 – – – 27217 
distribution costs 298  – – – – 298 
research and development 4409 68 – 7 – 4334 
selling general and administrative costs 11332 403 403 – 636 9890 
other operating income and expense 553 – 108 265 – 926 
operating proﬁt 11543 659 511 272 636 13621 
add back research and development 4409 68 – 7 – 4334
prerd operating margin 15952 591 511 265 636 17955
net ﬁnance expense 736 – – – – 736 
proﬁt before tax 10807 659 511 272 636 12885 
taxation 3263 199 125 82 34 3703 
proﬁt for the period 7544 460 386 190 602 9182 
basic earnings per share  519 032 027 013 041 632 
in 2009 sales increased by 7 reported 4 2009 revenues 
beneﬁted from strong growth of the toprolxl franchise in the us 
as a result of the withdrawal from the market of two other generic 
metoprolol succinate products and from us government orders for 
the h1n1 inﬂuenza swine ﬂu vaccine adjusting for these factors 
global revenue increased by 4 further details of our 2009 sales 
performance are given in the performance 2009 sections of the 
therapy area review from page 50
core gross margin of 83 for 2009 was 24 higher than 2008 
reported 33 lower payments to merck and continued 
efﬁciency gains and mix factors were partially offset by higher 
royalty payments resulting from higher volumes of sales of  
relevant products
core rd expenditure was 4334 million for 2009 3 lower than 
the prior year reported 15 as increased investment in biologics 
was more than offset by the continued productivity initiatives and 
lower costs associated with latestage development projects that 
have progressed to preregistration
core sga costs of 9890 million for 2009 were 5 higher than 
the prior year reported 4 stronger than expected revenue 
performance provided the opportunity to drive future growth 
through accelerated marketing investment for emerging markets 
and currently marketed brands and to support launch planning for 
the new products awaiting registration sga expense growth also 
included increased legal expenses and impairment of intangible 
assets related to information systems which were only partially 
offset by operational efﬁciencies
core other operating income and expense of 926 million was  
192 million higher than 2008 chieﬂy as a result of the disposal of 
the copromotion rights of abraxane™ and nordic otc portfolio 
disposals in the ﬁrst half of 2009
impairment charges relating to intangible ﬁxed assets totalled  
415 million during 2009 charges totalling 272 million being the 
charges arising from impairments in respect of assets relating to our 
hpv cervical cancer vaccine income stream and other assets 
capitalised as part of the medimmune acquisition were excluded 
from core results
developments in several legal matters resulted in provisions totalling 
636 million in 2009 
2009 restructuring costs totalling 659 million incurred as the 
group continued its previously announced efﬁciency programmes 
and amortisation totalling 511 million relating to assets capitalised 
as part of the medimmune acquisition and the merck partial 
retirement which impacted reported operating proﬁt were also 
excluded from core performance
core operating proﬁt was 13621 million in 2009 an increase of 
23 reported 26 core operating margin increased by 51 to 
415 of revenue as a result of sales growth efﬁciencies across the 
cost base lower rd spend and the disposals within other income
net ﬁnance expense was 736 million in 2009 versus 463 million 
in 2008 the principal factors contributing to this increase were the 
continued reversal of a fair value gain reduced interest received due 
astrazeneca annual report and form 20f information 2010 88 financial review results of operations – summary analysis of year to 31 december 2009
financial review to lower interest rates and a higher net interest expense on pension 
obligations partially offset by reduced interest payable on lower net 
debt balances
net ﬁnance expense included a net fair value loss of 145 million 
2008 130 million gain as credit spreads reduced since the 2008 
year end
the effective tax rate for 2009 was 302 excluding the impact of 
the 636 million legal provisions the effective tax rate would have 
been 288 2008 294
2009 core eps were 632 an increase of 23 from 2008 as the 
increase in core operating proﬁt was partially offset by increased 
net ﬁnance expense 2009 reported eps increased 24 to 519
total comprehensive income for 2009 increased by 3266 million 
from 2008 this was principally due to an increase in proﬁt in 2009 
of 1414 million beneﬁcial exchange rate impacts on consolidation 
of 1365 million and reduced actuarial losses of 663 million 
compared with 2008
cash ﬂow and liquidity – 2009
all data in this section is on a reported basis
cash generated from operating activities was 11739 million in 
2009 compared with 8742 million in 2008 the increase of  
2997 million was principally driven by an increase in operating 
proﬁt before depreciation amortisation and impairment costs of 
1866 million offset by a decrease in noncash items of 287 
million which includes fair value adjustments an improvement in 
working capital ﬂows including shortterm provisions of 1539 
million which also contributed signiﬁcantly to this increase arose 
principally from an increase in returns and chargebacks provisions 
and the legal provisions made in 2009
net cash outﬂows from investing activities were 2476 million in 
2009 compared with 3896 million in 2008 the movement of 
1420 million was due primarily to the payment of 2630 million to 
merck in 2008 as part of the partial retirement and the proceeds 
from the disposal of the abraxane™ copromotion rights of 269 
million received in 2009 countered by an increase in the purchase 
of shortterm investments and ﬁxed deposits of 1372 million
cash distributions to shareholders through dividend payments 
were 2977 million in 2009
gross debt including loans shortterm borrowings and overdrafts 
was 11063 million as at 31 december 2009 2008 11848 
million of this debt 1926 million was due within one year  
2008 993 million
net funds of 535 million improved by 7 709 million from net debt 
of 7 174 million at 31 december 2008
financial position – 2009
all data in this section is on a reported basis unless noted 
otherwise
net assets increased by 4761 million to 20821 million in 2009 
the increase due to group proﬁt of 7 521 million was offset by 
dividends of 3026 million exchange rate movements arising on 
consolidation and actuarial losses also reduced net assets during 
2009
property plant and equipment
in 2009 property plant and equipment increased by 264 million to 
7 307 million primarily due to additions of 967 million and 
exchange rate movements of 391 million offset by depreciation 
and impairments of 943 million
goodwill and intangible assets
goodwill and intangible assets increased by 82 million to  
22115 million
goodwill principally arose on the acquisition of medimmune and on 
the restructuring of our us joint venture with merck in 1998 no 
goodwill was capitalised in 2009
intangible assets reduced by 97 million in 2009 to 12226 million 
additions totalled 1003 million amortisation was 729 million and 
impairments totalled 415 million exchange rate impacts increased 
intangible assets by 178 million
additions in 2009 included 300 million in respect of milestone 
payments made under our collaboration agreement with bms 
200 million in respect of our agreement with targacept and  
126 million in respect of our agreement with nektar
during 2009 impairments totalled 415 million 150 million was 
impaired as a result of a reassessment of the licensing income 
generated by the hpv cervical cancer vaccine impairments of 
other assets acquired with medimmune totalled 122 million 
impairments related to our acquisition of medimmune and therefore 
excluded from our core results totalled 272 million in addition  
93 million was written off products in development
inventories
inventories increased by 114 million to 1750 million in 2009 
principally due to exchange rate impacts
receivables payables and provisions
trade and other receivables increased by 448 million to  
7 709 million exchange rate movements increased receivables  
by 220 million the underlying increase of 228 million was driven 
by increased sales in the ﬁnal quarter and an increase in insurance 
recoverables
as of 31 december 2009 legal defence costs of approximately 
656 million 2008 512 million have been incurred in connection 
with seroquelrelated product liability claims the ﬁrst 39 million is 
not covered by insurance at 31 december 2009 astrazeneca 
recorded an insurance receivable of 521 million 2008 426 
million representing the maximum insurance receivable that 
astrazeneca could recognise under applicable accounting 
principles at that time
in 2009 trade and other payables increased by 1604 million 
primarily due to increases in us managed market accruals accruals 
in respect of intangibles investments made in the fourth quarter and 
other accruals trade and other payables included 2618 million  
in respect of accruals relating to rebates and chargebacks in our  
us market
during 2009 astrazeneca made a provision of 636 million in 
respect of various federal and state investigations and civil litigation 
matters relating to drug marketing and pricing practices  
524 million of this provision was made in respect of the us 
attorney’s ofﬁce investigation into sales and marketing practices 
involving seroquel with the remainder relating to average wholesale 
price litigation 
tax payable and receivable
net income tax payable increased by 885 million to 2853 million 
in 2009 principally due to tax audit provisions cash tax timing 
differences and exchange rate movements
retirement beneﬁt obligations
net retirement beneﬁt obligations increased by 622 million 
principally as a result of actuarial losses of 569 million and adverse 
exchange rate effects of 215 million in 2009 approximately  
97 of the group’s obligations were concentrated in the uk the  
us and sweden 
astrazeneca annual report and form 20f information 2010
additional information financial statements corporate governance overview business review
financial review cash ﬂow and liquidity – 2009 89 financial risk management
financial risk management policies
insurance
our risk management processes are described in the managing risk 
section from page 95 these processes enable us to identify risks 
that can be partly or entirely mitigated through the use of insurance 
we negotiate best available premium rates with insurance providers 
on the basis of our extensive risk management procedures in the 
current insurance market the level of cover is decreasing while 
premium rates are increasing rather than simply paying higher 
premiums for lower cover we focus our insurance resources on the 
most critical areas or where there is a legal requirement and where 
we can get best value for money risks to which we pay particular 
attention include business interruption directors’ and ofﬁcers’ 
liability and property damage recently insurance for product 
liability has not been available on commercially acceptable terms 
and the group has not held product liability insurance since 
february 2006
taxation
tax risk management forms an integrated part of the group risk 
management processes our tax strategy is to manage tax risks 
and tax costs in a manner consistent with shareholders’ best 
longterm interests taking into account both economic and 
reputational factors we draw a distinction between tax planning 
using artiﬁcial structures and optimising tax treatment of business 
transactions and we engage only in the latter
treasury
the principal ﬁnancial risks to which the group is exposed are those 
arising from liquidity interest rate foreign currency and credit the 
group has a centralised treasury function to manage these risks in 
accordance with boardapproved policies speciﬁcally liquidity risk 
is managed through maintaining access to a number of sources of 
funding to meet anticipated funding requirements including 
committed bank facilities and cash resources interest rate risk is 
managed through maintaining a debt portfolio that is weighted 
towards ﬁxed rates of interest accordingly the group’s net interest 
charge is not signiﬁcantly affected by movements in ﬂoating rates of 
interest we do not currently hedge the impact on earnings and 
cash ﬂow of changes in exchange rates with the exception of the 
currency exposure that arises between the booking and settlement 
dates on nonlocal currency purchases and sales by subsidiaries 
and the external dividend along with certain nonus dollar debt 
credit risk is managed through setting and monitoring credit limits 
appropriate for the assessed risk of the counterparty
our capital and risk management objectives and policies are 
described in further detail in note 23 to the financial statements 
from page 168 and in the managing risk section from page 95
sensitivity analysis of the group’s exposure to exchange rate and 
interest rate movements is also detailed in note 23 to the financial 
statements from page 168
critical accounting policies and estimates
our financial statements are prepared in accordance with ifrs  
as adopted by the eu adopted ifrs and as issued by the iasb 
and the accounting policies employed are set out in the group 
accounting policies section in the financial statements from  
page 142 in applying these policies we make estimates and 
assumptions that affect the reported amounts of assets and 
liabilities and disclosure of contingent assets and liabilities the 
actual outcome could differ from those estimates some of these 
policies require a high level of judgement because the areas are 
especially subjective or complex we believe that the most critical 
accounting policies and signiﬁcant areas of judgement and 
estimation are in
  revenue recognition 
  research and development 
  impairment testing of goodwill and intangible assets 
  litigation 
  postretirement beneﬁts 
  taxation 
  segmental reporting
revenue recognition
revenue is recorded at the invoiced amount excluding inter
company sales and value added taxes less movements in 
estimated accruals for rebates and chargebacks given to managed
care and other customers and product returns – a particular feature 
in the us the impact in the rest of the world is not signiﬁcant it  
is the group’s policy to offer a credit note for all returns and to 
destroy all returned stock in all markets cash discounts for prompt 
payment are also deducted from sales revenue is recognised at 
the point of delivery which is usually when title passes to the 
customer either on shipment or on receipt of goods by the 
customer depending on local trading terms income from royalties 
and from disposals of intellectual property brands and product  
lines is included in other operating income
rebates chargebacks and returns in the us
at the time of invoicing sales in the us rebates and chargebacks 
that we expect to pay in as little time as two weeks or as much  
as eight months are estimated these rebates typically arise  
from sales contracts with third party managedcare organisations 
hospitals longterm care facilities group purchasing organisations 
and various federal or state programmes medicaid ‘best price’ 
contracts supplemental rebates etc and can be classiﬁed as follows
  chargebacks where we enter into arrangements under which 
certain parties typically hospitals the department of veterans 
affairs public health service covered entities and the 
department of defense are able to buy products from 
wholesalers at the lower prices we have contracted with them 
the chargeback is the difference between the price we invoice to 
the wholesaler and the contracted price charged by the 
wholesaler chargebacks are paid directly to the wholesalers
  regulatory including medicaid and other federal and state 
programmes where we pay rebates based on the speciﬁc terms 
of agreements with the us department of health and human 
services and with individual states which include product usage 
and information on best prices and average market prices 
benchmarks
  contractual under which entities such as third party managed
care organisations longterm care facilities and group purchasing 
organisations are entitled to rebates depending on speciﬁed 
performance provisions which vary from contract to contract
the effects of these deductions on our us pharmaceuticals revenue 
and the movements on us pharmaceuticals revenue provisions are 
set out opposite
accrual assumptions are built up on a productbyproduct and 
customerbycustomer basis taking into account speciﬁc contract 
provisions coupled with expected performance and are then 
aggregated into a weighted average rebate accrual rate for each of 
our products accrual rates are reviewed and adjusted on a monthly 
basis there may be further adjustments when actual rebates are 
invoiced based on utilisation information submitted to us in the 
case of contractual rebates and claimsinvoices are received in the 
case of regulatory rebates and chargebacks we believe that we 
have been reasonable in our estimates for future rebates using a 
similar methodology to that of previous years inevitably however 
such estimates involve judgements on aggregate future sales levels 
segment mix and the customer’s contractual performance
astrazeneca annual report and form 20f information 2010 90 financial review financial risk management
financial review gross to net sales
2010 
m 
2009 
m 
2008 
m 
gross sales 22909 22646 20029 
chargebacks 2075 1841 1726 
regulatory – us government and state programmes 1949 1357 1005 
contractual – managedcare and group purchasing organisation rebates 4755 4752 3658 
cash and other discounts 437 428 390 
customer returns 21 193 48 
other 265 196 167 
net sales 13407 13879 13035 
movement in provisions
brought 
forward at 
1 january
2010 
m 
provision for
current year 
m 
adjustment in
respect of 
prior years 
m 
returns and
payments 
m 
carried 
forward at 
31 december
2010 
m 
chargebacks 396 2107 32 1948 523
regulatory – us government and state programmes 775 1984 35 1602 1122
contractual – managedcare and group purchasing organisation rebates 1447 4826 71 5008 1194
cash and other discounts 41 438 1 437 41
customer returns 177 22 1 65 133
other 59 269 4 260 64
total  2895 9646 144 9320 3077
brought
forward at 
1 january 
2009 
m 
provision for
current year 
m 
adjustment in
respect of 
prior years 
m 
returns and
payments 
m 
carried 
forward at 
31 december
2009 
m 
chargebacks 359  1947  106  1804  396 
regulatory – us government and state programmes 520  1373  16  1102  775 
contractual – managedcare and group purchasing organisation rebates 1084  4732  20  4389  1447 
cash and other discounts 39  428  –  426  41 
customer returns 77  194  1  93  177 
other 57  198  2  194  59 
total  2136  8872 105 8008  2895 
brought 
forward at 
1 january 
2008 
m 
provision for
current year 
m 
adjustment in 
respect of 
prior years 
m 
returns and
payments 
m 
carried 
forward at 
31 december
2008 
m 
chargebacks 186  1745  19  1553  359 
regulatory – us government and state programmes 428  997  8  913  520 
contractual – managedcare and group purchasing organisation rebates 900  3622  36  3474  1084 
cash and other discounts 38  390 –  389  39 
customer returns 85  48 –  56  77 
other 53  167 –  163  57 
total  1690  6969  25  6548  2136 
cash discounts are offered to customers to encourage prompt 
payment accruals are calculated based on historical experience 
and are adjusted to reﬂect actual experience
industry practice in the us allows wholesalers and pharmacies to 
return unused stocks within six months of and up to 12 months 
after shelflife expiry the customer is credited for the returned 
product by the issuance of a credit note returned product is not 
exchanged for product from inventory and once a return claim has 
been determined to be valid and a credit note has been issued to 
the customer the returned goods are destroyed and not resold  
at the point of sale in the us we estimate the quantity and value  
of goods which may ultimately be returned our returns accruals  
in the us are based on actual experience our estimate is based  
on the preceding 12 months for established products together  
with marketrelated information such as estimated stock levels  
at wholesalers and competitor activity which we receive via third 
party information services for newly launched products we  
use rates based on our experience with similar products or a 
predetermined percentage
for products facing generic competition such as arimidex and 
merrem in the us our experience is that we usually lose the ability 
to estimate the levels of returns from wholesalers with the same 
degree of precision that we can for products still subject to patent 
protection this is because we have limited or no insight into a 
number of areas – the actual timing of the launch of a generic 
competitor following regulatory approval of the generic product for 
example a generic manufacturer may or may not have produced 
adequate prelaunch inventory the pricing and marketing strategy 
of the competitor the takeup of the generic and in cases where  
a generic manufacturer has approval to launch just one dose size  
in a market of several dose sizes the likely level of switching from 
one dose to another under our accounting policy revenue is 
recognised only when the amount of the revenue can be measured 
reliably our approach in meeting this condition for products facing 
generic competition will vary from product to product depending  
on the speciﬁc circumstances
astrazeneca annual report and form 20f information 2010
additional information financial statements corporate governance overview business review
financial review critical accounting policies and estimates 91 the closing adjustment in respect of prior years beneﬁted 2010 net 
us pharmaceuticals revenue by 11 2009 increased revenue by 
08 2008 decreased revenue by 02 however taking into 
account the adjustments affecting both the current and the  
prior year 2009 revenue beneﬁted by 03 and 2008 revenue 
decreased by 10
we have distribution service agreements with major wholesaler 
buyers which serve to reduce the speculative purchasing behaviour 
of the wholesalers and reduce shortterm ﬂuctuations in the level  
of inventory they hold we do not offer any incentives to encourage 
wholesaler speculative buying and attempt where possible to restrict 
shipments to underlying demand when such speculation occurs
sales of intangible assets
a consequence of charging all internal rd expenditure to the 
income statement in the year in which it is incurred which is normal 
practice in the pharmaceutical industry is that we own valuable 
intangible assets which are not recorded on the balance sheet  
we also own acquired intangible assets which are included on the 
balance sheet as a consequence of regular reviews of product 
strategy from time to time we sell such assets and generate 
income sales of product lines are often accompanied by an 
agreement on our part to continue manufacturing the relevant 
product for a reasonable period often about two years while the 
purchaser constructs its own manufacturing facilities the contracts 
typically involve the receipt of an upfront payment which the 
contract attributes to the sale of the intangible assets and ongoing 
receipts which the contract attributes to the sale of the product  
we manufacture in cases where the transaction has two or more 
components we account for the delivered item for example  
the transfer of title to the intangible asset as a separate unit of 
accounting and record revenue on delivery of that component 
provided that we can make a reasonable estimate of the fair value  
of the undelivered component where the fair market value of the 
undelivered component for example a manufacturing agreement 
exceeds the contracted price for that component we defer an 
appropriate element of the upfront consideration and amortise this 
over the performance period however where the fair market value 
of the undelivered component is equal to or lower than the 
contracted price for that component we treat the whole of the 
upfront amount as being attributable to the delivered intangible 
assets and recognise that part of the revenue upon delivery no 
element of the contracted revenue related to the undelivered 
component is allocated to the sale of the intangible asset this  
is because the contracted revenue relating to the undelivered 
component is contingent on future events such as sales and so 
cannot be anticipated
research and development
our business is underpinned by our marketed products and 
development portfolio the rd expenditure on internal activities  
to generate these products is generally charged to proﬁt in the  
year that it is incurred purchases of intellectual property and 
product rights to supplement our rd portfolio are capitalised as 
intangible assets further details of this policy are included in the 
group accounting policies section of our financial statements on 
page 142 such intangible assets are amortised from the launch of 
the underlying products and are tested for impairment both before 
and after launch this policy is in line with practice adopted by major 
pharmaceutical companies
impairment testing of goodwill and intangible assets
we have signiﬁcant investments in goodwill and intangible assets as 
a result of acquisitions of businesses and purchases of assets such 
as product development and marketing rights
details of the estimates and assumptions we make in our annual 
impairment testing of goodwill are included in note 8 to the financial 
statements on page 154 no impairment of goodwill was identiﬁed
impairment reviews have been carried out on all intangible assets 
that are in development and not being amortised all major 
intangible assets acquired during the year and all intangible assets 
that have had indications of impairment during the year sales 
forecasts and speciﬁc allocated costs which have both been 
subject to appropriate senior management signoff are discounted 
using appropriate rates based on astrazeneca’s riskadjusted 
pretax weighted average cost of capital in building to the range of 
rates used in our internal investment appraisal of future projects and 
capital investment decisions we adjust our weighted average cost 
of capital for other factors which reﬂect without limitation local 
matters such as risk on a case by case basis
intangible asset impairment charges recorded in 2010 included 
445 million following our decision to withdraw our fda biological 
license application for motavizumab as detailed on page 156 and 
128 million related to our decision to discontinue further 
development of lesogaberan azd3355
the majority of our investments in intangible assets and goodwill 
arose from the restructuring of the joint venture with merck in 1998 
the acquisition of medimmune in 2007 and the payments to partially 
retire merck’s interests in our products in the us in 2008 and 2010 
and we are satisﬁed that the carrying values at 31 december 2010 
are fully justiﬁed by estimated future cash ﬂows the accounting for 
our arrangements with merck is fully explained in note 25 to the 
financial statements from page 178
further details of the estimates and assumptions we make in 
impairment testing of intangible assets are included in note 9 to  
the financial statements from page 155
litigation
in the normal course of business contingent liabilities may arise 
from productspeciﬁc and general legal proceedings from 
guarantees or from environmental liabilities connected with our 
current or former sites where we believe that potential liabilities 
have a less than 50 probability of crystallising or where we are 
unable to make a reasonable estimate of the liability we treat them 
as contingent liabilities these are not provided for but are disclosed 
in note 25 to the financial statements from page 178
in cases that have been settled or adjudicated or where 
quantiﬁable ﬁnes and penalties have been assessed and which are 
not subject to appeal or other similar forms of relief or where a loss 
is probable more than 50 assessed probability and we are able 
to make a reasonable estimate of the loss we indicate the loss 
absorbed or the amount of the provision accrued
astrazeneca is defending its interests in various federal and state 
investigations and civil litigation matters relating to product liability 
and to drug marketing and pricing practices and in respect of which 
astrazeneca has made an aggregate provision of 612 million in  
the year 592 million of this provision has been made in respect of 
the ongoing seroquel product liability litigation and state attorney 
general investigations into sales and marketing practices in 
aggregate the current status of these matters is described more 
fully in note 25 to the financial statements from page 178 including 
our position on recovery of legal defence costs on page 190 this 
provision constitutes our best estimate at this time of the losses 
expected for these matters
where it is considered that the group is more likely than not to 
prevail or in the rare circumstances where the amount of the  
legal liability cannot be estimated reliably legal costs involved in 
defending the claim are charged to proﬁt as they are incurred 
where it is considered that the group has a valid contract which 
provides the right to reimbursement from insurance or otherwise  
of legal costs andor all or part of any loss incurred or for which a 
provision has been established and we consider recovery to be 
astrazeneca annual report and form 20f information 2010 92 financial review critical accounting policies and estimates
financial review virtually certain then the best estimate of the amount expected to 
be received is recognised as an asset
assessments as to whether or not to recognise provisions or assets 
and of the amounts concerned usually involve a series of complex 
judgements about future events and can rely heavily on estimates 
and assumptions astrazeneca believes that the provisions 
recorded are adequate based on currently available information and 
that the insurance recoveries recorded will be received however 
given the inherent uncertainties involved in assessing the outcomes 
of these cases and in estimating the amount of the potential losses 
and the associated insurance recoveries we could in future periods 
incur judgments or insurance settlements that could have a material 
adverse effect on our results in any particular period
the position could change over time and there can therefore be 
no assurance that any losses that result from the outcome of any 
legal proceedings will not exceed the amount of the provisions that 
have been booked in the accounts
although there can be no assurance regarding the outcome of legal 
proceedings we do not currently expect them to have a material 
adverse effect on our ﬁnancial position but they could signiﬁcantly 
affect our ﬁnancial results in any particular period
postretirement beneﬁts
we offer postretirement beneﬁt plans which cover many of our 
employees around the world in keeping with local terms and 
conditions most of these plans are ‘deﬁned contribution’ in nature 
where the resulting income statement charge is ﬁxed at a set level 
or is a set percentage of employees’ pay however several plans 
mainly in the uk which has by far the largest single scheme the 
us and sweden are deﬁned beneﬁt plans where beneﬁts are 
based on employees’ length of service and ﬁnal salary typically 
averaged over one three or ﬁve years the uk and us deﬁned 
beneﬁt schemes were closed to new entrants in 2000 all new 
employees in these countries are offered deﬁned contribution 
schemes the beneﬁts provided by the uk pension plan were 
modiﬁed during 2010 as detailed on page 83 and note 18 to the 
financial statements from page 162 in accordance with ias 19 
‘employee beneﬁts’ we recognised a gain of 791 million in the year 
arising from changes made to beneﬁts under certain of the group’s 
postretirement plans chieﬂy the freezing of future pensionable pay 
at 30 june 2010 levels under the group’s uk pension plan
in applying ias 19 we recognise all actuarial gains and losses 
immediately through reserves this methodology results in a  
less volatile income statement charge than under the alternative 
approach of recognising actuarial gains and losses over time 
investment decisions in respect of deﬁned beneﬁt schemes are 
based on underlying actuarial and economic circumstances with 
the intention of ensuring that the schemes have sufﬁcient assets  
to meet liabilities as they fall due rather than meeting accounting 
requirements the trustees follow a strategy of awarding mandates 
to specialist active investment managers which results in a broad 
diversiﬁcation of investment styles and asset classes the 
investment approach is intended to produce less volatility in  
the plan asset returns
in assessing the discount rate applied to the obligations we have 
used rates on aa corporate bonds with durations corresponding to 
the maturities of those obligations except in sweden where we have 
used rates on government bonds as the market in high quality 
bonds is insufﬁciently deep
in all cases the pension costs recorded in the financial statements 
are assessed in accordance with the advice of independent 
qualiﬁed actuaries but require the exercise of signiﬁcant judgement 
in relation to assumptions for future salary and pension increases 
longterm price inﬂation and investment returns
taxation
accruals for tax contingencies require management to make 
judgements and estimates in relation to tax audit issues and 
exposures amounts accrued are based on management’s 
interpretation of countryspeciﬁc tax law and the likelihood of 
settlement tax beneﬁts are not recognised unless the tax positions 
are probable of being sustained once considered to be probable 
management reviews each material tax beneﬁt to assess whether a 
provision should be taken against full recognition of the beneﬁt on 
the basis of potential settlement through negotiation andor 
litigation all such provisions are included in creditors due within one 
year any recorded exposure to interest on tax liabilities is provided 
for in the tax charge
astrazeneca faces a number of transfer pricing audits in 
jurisdictions around the world and in some cases is in dispute with 
the tax authorities these disputes usually result in taxable proﬁts 
being increased in one territory and correspondingly decreased in 
another our balance sheet positions for these matters reﬂect 
appropriate corresponding relief in the territories affected
further details of the estimates and assumptions we make in 
determining our recorded liability for transfer pricing audits and 
other tax contingencies are included in the tax section of note 25 of 
the financial statements on page 195
segmental reporting
in 2009 astrazeneca adopted ifrs 8 ‘operating segments’ ifrs 
8 requires an entity to report ﬁnancial and descriptive information 
about its reportable segments reportable segments are operating 
segments or aggregations of operating segments that meet 
speciﬁed criteria in addressing these criteria it was determined  
that astrazeneca is engaged in a single business activity of 
pharmaceuticals and that the group does not have multiple 
operating segments further details of our consideration of ifrs 8 
are given in our group accounting policies from page 145
sarbanesoxley act section 404
as a consequence of our listing on the nyse astrazeneca is 
required to comply with those provisions of the sarbanesoxley act 
applicable to foreign issuers section 404 of the sarbanesoxley 
act requires companies annually to assess and make public 
statements about the quality and effectiveness of their internal 
control over ﬁnancial reporting
our approach to the assessment has been to select key transaction 
and ﬁnancial reporting processes in our largest operating units and 
a number of specialist areas such as ﬁnancial consolidation and 
reporting treasury operations and taxation so that in aggregate 
we have covered a signiﬁcant proportion of each of the key line 
items in our financial statements each of these operating units  
and specialist areas has ensured that its relevant processes and 
controls are documented to appropriate standards taking into 
account in particular the guidance provided by the sec we have 
also reviewed the structure and operation of our ‘entity level’ control 
environment this refers to the overarching control environment 
including structure of reviews checks and balances that are 
essential to the management of a wellcontrolled business
the directors have concluded that our internal control over ﬁnancial 
reporting is effective at 31 december 2010 and the assessment is 
set out in the directors’ responsibilities for and report on internal 
control over financial reporting on page 136 kpmg audit plc has 
audited the effectiveness of our internal control over ﬁnancial 
reporting at 31 december 2010 and as noted in the auditor’s 
report on the financial statements and on internal control over 
financial reporting sarbanesoxley act section 404 on page 137  
their report is unqualiﬁed
astrazeneca annual report and form 20f information 2010
additional information financial statements corporate governance overview business review
financial review sarbanesoxley act section 404 93 what is our 
approach to risk 
management
we encourage clear 
decision making as 
to which risks we 
take and how we 
manage them
astrazeneca annual report and form 20f information 2010 94 risk in this section we describe our key risk 
management and assurance mechanisms and 
the principal risks and uncertainties which we 
currently consider to be material to our business 
in that they may have a signiﬁcant effect on our 
ﬁnancial condition results of operations andor 
reputation speciﬁc risks and uncertainties are 
also discussed at various points in the business 
review section from page 24 where relevant
managing risk
as an innovationdriven global prescriptionbased 
biopharmaceutical business we face a diverse range of risks and 
uncertainties that may adversely affect our business our approach 
to risk management is designed to encourage clear decision 
making as to which risks we take as a business and how we 
manage those risks in each case informed by an understanding  
of the commercial ﬁnancial compliance legal and reputational 
implications of these risks
we work continuously to ensure that we have effective risk 
management processes in place to support the delivery of our 
strategic objectives the material needs of our stakeholders and our 
core values we monitor our business activities and our external 
and internal environments for new emerging and changing risks to 
ensure that these are proactively managed at the appropriate level 
as they arise
the board believes that the processes and accountabilities which 
are in place and described below in further detail provide it with 
adequate information on the key risks and uncertainties facing the 
business further information about these risks and uncertainties is 
set out in the principal risks and uncertainties section from page 96
embedded in business processes 
we strive to ensure sound risk management is embedded within 
our strategy planning budgeting and performance management 
processes the board has deﬁned the group’s risk appetite 
expressing the acceptable levels of risk for the group using three 
key dimensions earnings and cash ﬂow return on investment and 
reputation this deﬁnition provides a clear statement of the board’s 
position on risk and enables in quantitative and qualitative terms 
the level of risk the group is prepared to take in individual decisions 
in pursuit of its overall objectives to be taken into account 
annually the group develops a longterm business plan to support 
the delivery of its strategy and the board reviews and conﬁrms that 
the business plan conforms to its risk appetite line management 
are accountable for identifying and managing risks and for 
delivering business objectives within the group’s risk appetite  
each area for which a set member is responsible a set function 
is required to provide a comprehensive assessment of its risks as 
part of the annual business planning process identiﬁed risks are 
mapped to astrazeneca’s risk ‘taxonomy’ which provides a 
structured disaggregation of the potential strategic operational 
compliance and reputational risks facing the group
the ceo and the cfo undertake quarterly business reviews 
qbrs with each set function where the key risks are reviewed 
business managers within each set function are required to 
provide quarterly updates on their key risks and these are 
consolidated to create the list of key risks for that set function for 
review at the qbrs the key risks for each set function are then 
aggregated into a group risk register the purpose of the risk review 
is to identify and measure risks and to deﬁne and review risk 
management and mitigation plans risk management standards 
guidelines and supporting tools are in place to support the 
managers in the effective identiﬁcation reporting management  
and mitigation of risk 
our approach to risk management includes the development of 
business resilience plans to provide for situations where speciﬁc risks 
have the potential to severely impact our business global business 
resilience plans covering crisis management business continuity 
and emergency responses are in place supported by the training  
of relevant business managers and crisis simulation activities
one of our strategic priorities is to ensure that a culture of ethics 
and integrity is embedded in all business practices our code of 
conduct and our global policies and standards set mandatory 
minimum standards of responsible behaviour for all employees in 
addition all employees receive annual training on the requirements 
of our code of conduct as well as more speciﬁc targeted training 
on particular policies and standards employees are encouraged to 
raise questions on the practical application of these standards and 
to report suspected breaches and incidents of noncompliance 
through the reporting channels described in our code of conduct 
for information about how we identify and manage the risks 
associated with ‘responsible business’ please see the 
accountabilities and responsibilities section of the responsible 
business section on page 41 
key responsibilities
management of risk 
daytoday management of risk is delegated from the board to  
the ceo and through the set to line managers set management 
areas are accountable for establishing an appropriate line 
managementled process and for providing the resources for 
supporting effective risk management
line and project management are accountable for the management 
of risk within the context of their functional or crossfunctional remit 
or project line managers have primary responsibility for identifying 
and managing risk and for putting in place appropriate controls and 
procedures to monitor their effectiveness
oversight and monitoring
the set is responsible for overseeing and monitoring the 
effectiveness of the risk management processes implemented by 
management specialist risk and compliance functions support the 
set by providing and advising on policy and standard setting 
monitoring and auditing communication and training and reporting 
on the adequacy of line management processes as they apply to 
managing risk throughout the business
astrazeneca annual report and form 20f information 2010
corporate governance additional information financial statements overview business review
risk 95
risk our compliance organisation is comprised of the global 
compliance function together with a wide range of specialist 
compliance functions global compliance maintains our code of 
conduct and global policies and standards and ensures that an 
effective compliance programme is in place to ensure compliance 
with the 16 principles of our code of conduct and relevant policies 
and standards 
the specialist compliance functions support line management and 
set to manage risk in speciﬁc regulated areas to ensure ongoing 
legal and regulatory compliance these specialist groups include 
good laboratory clinical and manufacturing compliance sales 
and marketing compliance medical and regulatory affairs 
financial control and compliance safety health and environment 
information security and data privacy and security 
when a potential compliance breach is identiﬁed the compliance 
organisation undertakes an internal investigation should the 
investigation conclude that an actual compliance breach has 
occurred the compliance organisation will consider whether the 
company needs to make a disclosure andor to report the ﬁndings 
to a regulatory or governmental authority when appropriate the 
compliance organisation will engage external advisers to conduct 
andor advise on investigations
management reporting and assurance 
the audit committee is comprised of ﬁve nonexecutive directors 
and is accountable among other things for assessing the 
adequacy and effectiveness of the risk management systems and 
processes implemented by management the audit committee 
receives regular reports from the external auditor and the following 
business functions
  group internal audit gia – independent assurance reports  
on the group’s risk management and control framework
  global compliance – compliance programme reports on  
key compliance risks updates on key compliance initiatives 
performance against the global compliance scorecard 
compliance incidents and investigations including calls made  
by employees to the azethics and medimmune helplines
  financial control and compliance group – reports on sarbanes
oxley act compliance and the ﬁnancial control framework
  management – the grouplevel risk summary from the annual 
business planning process and qbrs and reports on the 
performance management and monitoring processes
the audit committee reviews and reports to the board following 
each audit committee meeting on the overall framework of risk 
management and internal controls and is responsible for promptly 
bringing to the board’s attention any signiﬁcant concerns about the 
conduct results or outcome of internal audits and other compliance 
matters for further information on the audit committee see the 
audit committee section from page 113
gia is an independent assurance and advisory function that reports 
to and is accountable to the audit committee gia’s budget 
resources and programme of audits are approved by the audit 
committee on an annual basis and the ﬁndings from its audit work 
are reported to and are discussed at each audit committee 
meeting a core part of the audit work carried out by gia includes 
assessing how astrazeneca is managing risk and reviewing the 
effectiveness of selected aspects of astrazeneca’s risk control 
framework including the effectiveness of other assurance and 
compliance functions within the business during 2010 gia 
assessed the effectiveness of a number of core compliance and 
operational processes operating within the business as well as the 
effectiveness of risk mitigation plans in a number of high risk andor 
business critical areas
principal risks and uncertainties
the pharmaceutical sector is inherently risky and a variety of risks 
and uncertainties may affect our business here we summarise 
under the headings product pipeline risks commercialisation and 
business execution risks supply chain and delivery risks legal 
regulatory and compliance risks and economic and ﬁnancial risks 
the principal risks and uncertainties which we currently consider to 
be material to our business in that they may have a signiﬁcant effect 
on our ﬁnancial condition results of operations andor reputation 
these risks are not listed in any assumed order of priority other 
risks unknown or not currently considered material could have a 
similar effect we believe that the forwardlooking statements about 
astrazeneca in this annual report identiﬁed by words such as 
‘anticipates’ ‘believes’ ‘expects’ and ‘intends’ are based on 
reasonable assumptions however forwardlooking statements 
involve inherent risks and uncertainties such as those summarised 
below because they relate to events and depend on circumstances 
that will occur in the future and may be inﬂuenced by factors 
beyond our control andor may have actual outcomes materially 
different from our expectations
product pipeline risks
failure to meet development targets
the development of any pharmaceutical product candidate is a 
complex risky and timeintensive process involving signiﬁcant 
ﬁnancial rd and other resources which may fail at any stage  
of the process due to a number of factors including
  failure to obtain the required regulatory or marketing approvals for 
the product candidate or the facilities in which it is manufactured
  unfavourable data from key studies
  adverse reactions to the product candidate or indications of other 
safety concerns
  failure of rd to develop new and differentiated product 
candidates
  failure to demonstrate adequately costeffective beneﬁts to 
regulators
  the emergence of competing products
a succession of negative drug project results and a failure to  
reduce development timelines effectively could adversely affect the 
reputation of our rd capabilities furthermore the failure of rd 
to yield new products that achieve commercial success is likely to 
have a material adverse effect on our ﬁnancial condition and results 
of operations
production and release schedules for biologics may be more 
signiﬁcantly impacted by regulatory processes than other products 
due to more complex and stringent regulation on the manufacturing 
of biologics and their supply chain
astrazeneca annual report and form 20f information 2010
risk
96 risk difﬁculties of obtaining and maintaining regulatory approvals  
for new products 
we are subject to strict controls on the development labelling 
manufacture distribution and marketing of our pharmaceutical 
products the requirements to obtain regulatory approval based  
on a product’s safety efﬁcacy and quality before it can be marketed 
for a speciﬁed therapeutic indication or indications in a particular 
country and to maintain and to comply with licences and other 
regulations relating to its manufacture and marketing are 
particularly important the submission of an application to 
regulatory authorities which are different with different 
requirements in each region or country may or may not lead to 
approval to market the product regulators can refuse to grant 
approval or may require additional data before approval is given 
even though the medicine may already be launched in other parts  
of the world the countries that constitute key markets for our 
pharmaceutical products include the us certain countries of the 
eu and japan the approval of a product is required by the relevant 
regulatory authority in each country although a single paneu maa 
can be obtained through a centralised procedure
in recent years companies sponsoring new drug applications and 
regulatory authorities have been under increased public pressure to 
apply more conservative riskbeneﬁt criteria and in some instances 
the applicable regulatory authorities require a company to develop 
plans to ensure safe use of a marketed product before a 
pharmaceutical product is approved or after approval if a new  
and signiﬁcant safety issue is established in addition third party 
interpretation of publicly available data on our marketed products 
has the potential to inﬂuence the approval status or labelling of a 
currently approved and marketed product further the predictability 
of the outcome and timing of review processes remains challenging 
particularly in the us due to competing regulatory priorities and  
a continuing sentiment of risk aversion on the part of regulatory 
reviewers and management delays in regulatory reviews and 
approvals could impact the timing of a new product launch and  
the drive for public transparency of the review processes through 
the more extensive use of public advisory committees which in  
the us continue to add to the unpredictability of the process  
for example the approval of brilinta and axanum in the us has 
been delayed by complete response letters which requested 
further data andor analyses
failure to obtain effective intellectual property protection 
our policy and a key business priority is to protect our investment  
in rd by securing appropriate intellectual property protection  
in respect of our inventions and innovations our ability to obtain 
and enforce patents and other proprietary rights in relation to our 
products is therefore an important element of our ability to create 
longterm value for the business
a number of the countries in which we operate are still developing 
their intellectual property laws or may even be limiting the 
applicability of these laws to pharmaceutical inventions such  
that certain countries may seek to limit or deny effective patent 
protection for pharmaceuticals limitations on the availability of 
patent protection or the use of compulsory licensing in certain 
countries in which we operate could have a material adverse effect 
on the pricing and sales of our products and consequently could 
materially adversely affect our revenues from them more 
information about protecting our intellectual property is contained  
in the intellectual property section from page 30 and information 
about the risk of patent litigation and the early loss of intellectual 
property rights is contained in the patent litigation and early loss  
of intellectual property rights section from page 98
delay to new product launches 
our continued success depends on the development and 
successful launch of innovative new drugs the anticipated launch 
dates of major new products have a signiﬁcant impact on a number 
of areas of our business including investment in large clinical 
studies the manufacture of prelaunch stocks of the products 
investment in marketing materials ahead of a product launch sales 
force training and the timing of anticipated future revenue streams 
from commercial sales of new products these launch dates are 
primarily driven by the development programmes that we run and 
the demands of the regulatory authorities in the approvals process 
as well as pricing negotiation in some countries delays to 
anticipated launch dates can result from a number of factors 
including adverse ﬁndings in preclinical or clinical studies 
regulatory demands competitor activity and technology transfer 
signiﬁcant delays to anticipated launch dates of new products could 
have a material adverse effect on our ﬁnancial condition and results 
of operations for example for the launch of products that are 
seasonal in nature delays for regulatory approval or manufacturing 
difﬁculties can have the effect of delaying launch to the next season 
which in turn may signiﬁcantly reduce the return on costs incurred 
in preparing for the launch for that season in addition a delay in the 
launch may give rise to increased costs if for example marketing 
and sales efforts need to be rescheduled or protracted for longer 
than expected
strategic alliances formed as part of our externalisation strategy may 
be unsuccessful
we seek technology licensing arrangements and strategic 
collaborations to expand our product portfolio and geographical 
presence as part of our business strategy
such licensing arrangements and strategic collaborations are key  
to enable us to grow and strengthen the business if we fail to 
complete these types of collaborative projects in a timely manner 
on a costeffective basis or at all we may not realise the expected 
beneﬁts of any such collaborations the success of such current 
and future arrangements is largely dependent on the technology 
and other intellectual property we acquire and the resources efforts 
and skills of our partners there is a risk that these collaborative 
projects may be unsuccessful disputes and difﬁculties in such 
relationships may arise often due to conﬂicting priorities or conﬂicts 
of interest of the parties which may erode or eliminate the beneﬁts 
of these alliances if for example the agreements are terminated 
insufﬁcient ﬁnancial or other resources are made available to the 
alliances intellectual property is negatively impacted obligations  
are not performed as expected controls and commercial limitations 
are imposed over the marketing and promotion of the collaboration 
products or challenges in achieving commercial success of the 
product are encountered during the development process also 
under many of our strategic alliances we make milestone payments 
well in advance of the commercialisation of the products with no 
assurance that we will recoup these payments if these types of 
transactions are unsuccessful this may have a material adverse 
effect on our ﬁnancial condition and results of operations
furthermore we experience strong competition from other 
pharmaceutical companies in respect of licensing arrangements 
and strategic collaborations which means that we may be 
unsuccessful in establishing some of our intended projects if we 
are unsuccessful in establishing such projects in the future this may 
have a material adverse effect on our ﬁnancial condition and results 
of operations
astrazeneca annual report and form 20f information 2010
corporate governance additional information financial statements overview business review
risk 97 commercialisation and business execution risks
challenges to achieving commercial success of new products
the successful launch of a new pharmaceutical product involves 
substantial investment in sales and marketing activities launch 
stocks and other items the commercial success of our new 
medicines is of particular importance to us in order to replace sales 
lost as and when patent protection expires if a new product does 
not succeed as anticipated or its rate of sales growth is slower than 
anticipated there is a risk that the costs incurred in launching it 
could have a material adverse effect on our ﬁnancial condition  
and results of operations we may ultimately be unable to achieve 
commercial success for any number of reasons including
  inability to manufacture sufﬁcient quantities of the product 
candidate for development or commercialisation activities  
in a timely and costefﬁcient manner
  excessive costs of or difﬁculty in manufacturing
  erosion of patent term and other intellectual property rights and 
infringement of those rights and the intellectual property rights 
owned by third parties
  failure to show value or a differentiated proﬁle for our products
as a result we cannot be certain that compounds currently under 
development will achieve success
in addition the methods of distributing and marketing biologics 
could have a material impact on the revenue we are able to 
generate from the sales of products such as synagis and flumist
fluenz the commercialisation of biologics is often more complex 
than for traditional pharmaceutical products this is primarily due  
to differences in the mode of administration the technical aspects 
of the product and the rapidly changing distribution and 
reimbursement environments
performance of new products 
although we carry out numerous and extensive clinical studies on  
all our products before they are launched it can be difﬁcult for a 
period following the launch of a new product to establish from 
available data a complete assessment of its eventual efﬁcacy and
or safety in broader clinical use on the market due to the relatively 
short time that a product has been tested and the relatively small 
number of patients who have taken the product in clinical studies 
the available data may be immature simple extrapolation of the data 
may not be accurate and could lead to a misleading interpretation  
of the likely future commercial performance of a new product
product counterfeiting 
counterfeit medicines may contain harmful substances the wrong 
dose of the active pharmaceutical ingredient api or no api at all 
counterfeit medicines are a danger to patients in all parts of the 
world the international medical products anticounterfeiting 
taskforce impact of the who estimates that up to 30 of 
medicines in emerging economies are counterfeit a percentage 
which is exceeded in parts of latin america asia and africa  
by contrast in established economies with effective regulatory 
systems counterfeit medicines represent less than 1 of the 
market by market value public loss of conﬁdence in the integrity  
of pharmaceutical products as a result of counterfeiting could 
materially adversely affect our reputation and ﬁnancial performance 
in addition undue or misplaced concern about the issue might 
induce some patients to stop taking their medicines with 
consequential risks to their health
developing our business in emerging markets 
the development of our business in emerging markets will be  
a critical factor in determining our future ability to sustain or  
increase the level of our global product revenues challenges that 
arise in relation to the development of the business in emerging 
markets include 
  more volatile economic conditions 
  competition from companies that are already present in  
the market
  the need to identify correctly and to leverage appropriate 
opportunities for sales and marketing
  poor protection of intellectual property
  inadequate protection against crime including counterfeiting 
corruption and fraud
  the need to impose developed market compliance standards  
in emerging markets
  inadvertent breaches of local and international lawregulation
  not being able to recruit sufﬁcient personnel with appropriate skills 
and experience
  identiﬁcation of the most appropriate and effective sales channels 
and route to market interventions by national governments or 
regulators to restrict access to a market andor to introduce 
adverse price controls 
the failure to exploit potential opportunities appropriately in 
emerging markets may have a material adverse effect on our 
reputation ﬁnancial condition and results of operations
expiry of intellectual property rights 
pharmaceutical products are normally only protected from being 
copied during the period of protection under patent rights or related 
intellectual property rights such as regulatory data protection or 
orphan drug status following expiry of such rights the product  
is generally open to competition from generic versions products 
under patent protection or within the period of regulatory data 
protection typically generate signiﬁcantly higher revenues than 
those not protected by such rights see the intellectual property 
section from page 30 for a table of certain patent expiry dates for 
our key marketed products
patent litigation and early loss of intellectual property rights 
any of the intellectual property rights protecting our products may 
be asserted or challenged in intellectual property litigation initiated 
against or by alleged infringers such intellectual property rights 
may be affected by validity challenges in patent ofﬁces in any event 
we expect our most valuable products to receive the greater 
number of challenges despite our efforts to establish and defend 
robust patent protection for our products we may not succeed in 
such litigation and challenges to our patents if we are not 
successful in maintaining exclusive rights to market one or more of 
our major products particularly in the us where we have our 
highest revenue our revenue and margins could be materially 
adversely affected
generic drug manufacturers are seeking to market generic versions 
of many of our more important products prior to expiries of our 
patents and regulatory exclusivity periods for example we are 
currently facing challenges in the us from numerous generic drug 
manufacturers regarding certain of our patents for seroquel xr 
nexium and crestor three of our best selling products if such 
challenges succeed and generic products are launched or 
launched ‘at risk’ on the expectation that challenges to our 
intellectual property will be successful this may have a material 
adverse effect on our ﬁnancial condition and results of operations 
in 2010 us sales for seroquel xr nexium and crestor were 
640 million 2695 million and 2640 million respectively  
the more signiﬁcant patent litigation relating to our products is 
described in note 25 to the financial statements from page 178
astrazeneca annual report and form 20f information 2010
risk
98 risk in addition to patent challenges by generic drug manufacturers 
seeking to market generic versions of our products we bear the  
risk that we may be found to infringe patents owned or licensed 
exclusively by third parties including researchbased and generic 
pharmaceutical companies and individuals such third party patents 
may allegedly cover for example compositions devices products 
processes methods biological materials or research tools relating 
to our products infringement accusations may implicate for 
example our manufacturing processes product intermediates or 
use of research tools managing or litigating infringement disputes 
over socalled ‘freedom to operate’ can be costly we may be 
subject to injunctions against our products or processes andor be 
liable for damages or royalties we may need to obtain costly 
licences these risks may be greater in respect of biologics and 
vaccines where such infringement accusations relating to patents 
claiming processes research tools methods and biological 
materials are frequently found we may mitigate such risks 
successfully through for example acquiring licences foregoing 
certain activities or uses or modifying processes to avoid 
infringement claims and permit commercialisation of our products 
but there is no certainty that any such action or modiﬁcation will be 
possible and any such action may entail signiﬁcant cost details of 
signiﬁcant infringement claims against astrazeneca by third parties 
enforcing intellectual property rights can be found in note 25 to the 
financial statements from page 178
in addition to the challenges to our patented products from 
manufacturers of generic or other patented pharmaceutical 
products there is a risk that some countries particularly some  
of those in the developing world may seek to impose limitations  
on the availability of patent protection for pharmaceutical products 
or on the extent to which such protection may be obtained  
andor enforced within their jurisdictions as a result generic 
manufacturers in these countries may be increasingly and more 
easily able to introduce competing products to the market earlier 
than they would have been able to had more robust patent 
protection been available
combined with patent protection and regulatory exclusivities 
products protected by valid trade marks usually generate higher 
revenues than those without trade marks we believe that we have 
robust trade mark protection for our products but cannot be certain 
that we would be able to defend any challenge successfully
biosimilars
various regulatory authorities are implementing or considering 
abbreviated approval processes for biosimilars similar versions of 
existing biologics also referred to as ‘similar biological medicinal 
products’ and ‘followon biologics’
for example in 2010 the us enacted the biologics price 
competition and innovation act within the affordable care act 
which contains general directives for biosimilar applications the 
fda sought stakeholder input on speciﬁc issues and challenges  
in implementing an abbreviated biosimilar approval pathway and 
further guidance is expected to be issued in europe the ema 
published a draft guideline on similar biological medicinal products 
containing mabs this draft guideline will likely be ﬁnalised in 2011 
in may 2010 the who published ‘guidelines for evaluation of 
similar biotherapeutic products’ which are intended for national 
regulatory authorities in other markets
while it is uncertain when any such processes may be fully 
adopted particularly for complex protein molecules such as mabs 
any such processes could have a material adverse effect on the 
future commercial prospects for patented biologics
expiry or earlier loss of patents covering competing products
the expiry or earlier loss of patents covering other innovator 
companies’ products may lead to the availability of generic products 
in the same product class as our currently patented products earlier 
than anticipated such events could have a material adverse effect 
on our ﬁnancial condition and results of operations for example 
the loss of patent rights covering major products in the us such as 
advair diskus™ before 2012 or celebrex™ before 2014 or the early 
entry of generic versions of stillpatented products prior to the 
expiry of the patents protecting such products such as lipitor™ 
expected in 2011 may adversely affect the growth of our still
patented products in the same product class ie symbicort vimovo 
and crestor respectively in that market
competition price controls and price reductions
all our products compete directly with other products marketed 
either by major researchbased pharmaceutical companies or by 
generic pharmaceutical manufacturers these competitors may 
invest greater resources in the marketing of their products than we 
do depending on the relative priority of these competitor products 
within their company’s portfolio generic versions of products are 
often sold at lower prices than branded products because the 
manufacturer does not have to recoup the signiﬁcant cost of rd 
investment also generic pharmaceutical companies do not 
generally invest the same amounts in education services for 
healthcare professionals as researchbased pharmaceutical 
companies so the sales of their generic products do not need to 
cover these costs all our patented products including nexium 
crestor and seroquel are subject to price pressure from 
competition from generic products in the same product class
industry consolidation has resulted in a small number of very large 
companies this trend if it continues could materially adversely 
affect our competitive position while consolidation among our 
customers may increase price pressures 
in most of our key markets there is continued economic regulatory 
and political pressure to limit or reduce the cost of pharmaceutical 
products concurrently many markets are adopting the use of 
health technology assessment hta to provide a rigorous 
evaluation of the clinical efﬁcacy of a product at or postlaunch  
hta evaluations are also increasingly being used to assess the 
clinical as well as the cost effectiveness of products in a particular 
health system this comes as payers and policymakers attempt to 
drive increased efﬁciencies in the use and choice of pharmaceutical 
products a summary of the principal aspects of price regulation and 
how price pressures are affecting our business in our most important 
markets is set out in the geographical review from page 70
in the us realised prices are being depressed through the use of  
a range of costcontrol tools such as restricted lists or formularies 
employing ‘generic ﬁrst’ strategies which require physicians to 
obtain prior approval for the use of a branded medicine where a 
generic version exists these mechanisms put pressure on 
manufacturers to reduce prices and to limit access to branded 
products many of these mechanisms shift a greater proportion  
of the cost of medicines on to the individual via outofpocket 
payments at the pharmacy counter the patient outofpocket 
spend is generally in the form of a copayment or in some cases  
a coinsurance which is designed among other reasons to 
encourage patients to use generic medicines many of these 
management tools are also employed by institutional customers in 
response to the current costcontainment environment and these 
increasingly restrictive reimbursement policies could have a material 
adverse effect on our ﬁnancial condition and results of operations
astrazeneca annual report and form 20f information 2010
corporate governance additional information financial statements overview business review
risk 99 in the us new legislation is possible that may allow the commercial 
importation of medicines into the us from selected countries where 
these medicines are available at lower prices than in the us the 
adoption of such legislation could result in an increase in the volume 
of crossborder product movements which could have a material 
adverse effect on our ﬁnancial condition and results of operations
the us recently passed the affordable care act a comprehensive 
health reform package with provisions initially taking effect between 
2010 and 2014 among other things the law expands insurance 
coverage establishes new national entities focused on health 
system reforms and calls on the pharmaceutical industry and other 
healthcare industries to offset spending increases through ‘pay
fors’ in terms of speciﬁc provisions impacting our industry the law 
mandates higher rebates and discounts on branded drugs for 
certain medicare and medicaid patients as well as an industrywide 
excise tax the law also includes several health system delivery 
reforms that will be implemented over the next four years including 
the establishment of a new comparative effectiveness research 
organisation the patientcentered outcomes research institute 
and an independent payment advisory board with broad authority 
to propose to cut medicare expenditures the combined work of 
these two entities could lead to continued downward price pressure 
on pharmaceuticals as the us continues to struggle with federal 
and state budget deﬁcits it is expected that there will be continued 
downward pressure on healthcare spending growth
the health reform legislation expands the patient population eligible 
for medicaid and provides new insurance coverage for individuals 
through stateoperated health insurance exchanges large 
employers have typically offered generous health insurance 
beneﬁts but many are struggling with increasing health insurance 
premiums and may therefore opt to shift employee coverage into 
the health insurance exchanges which will be operational by 2014 
the pharmaceutical industry could be adversely impacted by such 
shifts if the health insurance exchanges do not offer a prescription 
drug beneﬁt that is as robust as beneﬁts historically provided by 
large employers
in the eu efforts by the european commission to reduce 
inconsistencies and to improve standards and best practice in the 
disparate national regulatory systems have met with little immediate 
success the industry continues to be exposed in europe to a 
range of disparate pricing systems ad hoc costcontainment 
measures and reference pricing mechanisms which impact prices 
this can lead to marked price differentials between markets  
which increases the pricing pressure affecting the industry the 
importation of pharmaceutical products from countries where 
prices are low due to government price controls or other market 
dynamics to countries where prices for those products are higher 
is already prevalent and may increase in particular as discussed  
in the pricing pressure section from page 11 germany spain 
portugal and greece have introduced a number of shortterm 
measures to lower healthcare spending including price cuts or 
increased mandatory rebates this could have a material adverse 
effect on our ﬁnancial condition and results of operations 
we expect that pressures on pricing will continue and may increase 
due to these pressures there can be no certainty that we will be 
able to charge prices for a product that in a particular country or  
in the aggregate enable us to earn an adequate return on our 
investment in that product
increasing implementation and enforcement of more stringent 
antibribery and anticorruption legislation 
there is an increasing focus globally on the implementation of 
legislation of an antibribery and anticorruption nature and on  
the enforcement of such legislation for example in the uk the  
new bribery act 2010 received royal assent in april 2010 and  
is expected to come into force in 2011 while there remains 
speculation as to the practical impact of the bribery act on 
companies it has extensive extraterritorial application implements 
signiﬁcant changes to existing uk antibribery legislation and 
broadens the scope of statutory offences and the potential 
penalties applicable thereto including among others things the 
creation of liability for any bribe paid on behalf of an organisation 
where the organisation failed to have adequate preventative 
procedures in place at the time of the offence there is also an 
increase in the maximum applicable penalties for bribery including 
up to ten years’ imprisonment and unlimited ﬁnes there have also 
been increased enforcement efforts in the uk by the serious fraud 
ofﬁce and in the us there has been signiﬁcant enforcement 
activity in respect of the foreign corrupt practices act by the sec 
and us department of justice against us companies as well as 
nonus companies listed in the us 
we devote signiﬁcant resources to the considerable challenge  
of compliance with this legislation including in emerging and 
developing markets at considerable cost astrazeneca is the 
subject of current anticorruption investigations and there can be no 
assurance that we will not from time to time continue to be subject 
to informal inquiries and formal investigations from governmental 
agencies in the context of our business governmental ofﬁcials 
interact with us in a variety of roles that are important to our 
operations such as in the capacity of a regulator partner or 
healthcare payer reimburser or prescriber among others inquiries 
and investigations from governmental agencies require additional 
resources to be devoted and notwithstanding the measures that 
we take to prevent breaches of applicable antibribery and 
anticorruption laws by our personnel breaches may result in the 
imposition of signiﬁcant penalties such as the payment of ﬁnes the 
requirement to comply with monitoring or selfreporting obligations 
or debarment or exclusion from government sales or reimbursement 
programmes any of which could have material adverse 
consequences on our business operations ﬁnancial condition and 
results of operations and could cause damage to our reputation
any expected gains from productivity initiatives are uncertain 
we continue to implement various productivity initiatives and 
restructuring programmes with the aim of enhancing the longterm 
efﬁciency of the business however anticipated cost savings and 
other beneﬁts from these programmes are based on estimates and 
the actual savings may vary signiﬁcantly in particular these cost 
reduction measures are based on current conditions and do not 
take into account any future changes to the pharmaceutical industry 
or our operations including new business developments wage and 
price increases and other factors
if inappropriately managed the expected value of the initiatives can 
be lost through low employee engagement and hence productivity 
increased absence and attrition levels and industrial action
astrazeneca annual report and form 20f information 2010
risk
100 risk our failure to successfully implement these planned cost reduction 
measures either through the successful conclusion of employee 
relations processes including consultation and engagement talent 
management recruitment and retention or the possibility that 
these efforts do not generate the level of cost savings we anticipate 
could have a material adverse effect on our results of operations 
and ﬁnancial condition
acquisitions may be unsuccessful
the group seeks to acquire complementary businesses as part  
of its business strategy the integration of an acquired business 
could involve incurring signiﬁcant debt and unknown or contingent 
liabilities as well as having a negative effect on our reported results 
of operations from acquisitionrelated charges amortisation of 
expenses related to intangibles and charges for impairment of 
longterm assets these effects individually or in combination 
could cause a deterioration in our credit rating andor increased 
borrowing costs and interest expense we could also experience 
difﬁculties in integrating geographically separated organisations 
systems and facilities and personnel with different organisational 
cultures integration of an acquired business may also divert 
management resources that would otherwise be available for the 
continuing development of our existing business the integration 
process may result in business disruption the loss of key 
employees slower execution of various work processes 
compliance failures due to a change in applicable regulatory 
requirements and other issues such as a failure to integrate 
information technology and other systems in addition if liabilities 
are uncovered in an acquired business the group may suffer 
losses and may not have remedies against the seller or third parties
failure to manage a crisis 
we handle chemical and biological materials operate research  
and manufacturing plants and distribute products worldwide major 
disruption to our business and damage to our reputation may be 
triggered by an operational incident or by actions by our employees 
or third parties in these circumstances a plan for addressing 
operational and other issues should ensure a timely response and 
the ability to resume business as usual failure to institute proper 
communication to internal and external stakeholders and to 
mobilise a rapid operational response could have a material adverse 
effect on our ﬁnancial condition and results of operations further 
information about our business resilience plans and processes are 
contained in the managing risk section from page 95
failure of information technology
we are dependent on effective it systems these systems support 
key business functions such as our rd manufacturing and sales 
capabilities and are an important means of internal and external 
communication any signiﬁcant disruption of these it systems or 
failure to integrate new and existing it systems could have a material 
adverse effect on our ﬁnancial condition and results of operations
failure of outsourcing 
we have outsourced a number of business critical operations  
to third party providers for example some rd processes 
information services and it systems facilities management human 
resources and ﬁnance and accounting services among other 
support functions failure of the outsource provider to deliver 
services in a timely manner and to the required level of quality could 
have an adverse impact on our ability to meet business targets and 
maintain a good reputation within the industry and with stakeholders  
it may also result in noncompliance with applicable laws and 
regulations failure to adequately manage the risk associated with 
outsourcing could have a material adverse effect on our ﬁnancial 
condition and results of operations
supply chain and delivery risks
manufacturing biologics 
manufacturing biologics especially in large quantities is often 
complex and may require the use of innovative technologies to 
handle living microorganisms and facilities speciﬁcally designed 
and validated for this purpose with sophisticated quality assurance 
and control procedures slight deviations in any part of the 
manufacturing process may result in lot failure product recalls or 
spoilage for example due to contamination
reliance on third parties for goods
like most if not all major researchbased pharmaceutical 
companies we increasingly rely on third parties for the timely supply 
of goods such as speciﬁed raw materials for example the active 
pharmaceutical ingredient in some of our medicines equipment 
formulated drugs and packaging all of which are key to our 
operations
however events beyond our control could result in the failure of 
supplies of goods which could have a material adverse effect on our 
ﬁnancial condition and results of operations for example suppliers 
of some of the key goods we rely on may cease to trade the 
consequence of this may be signiﬁcant delays andor difﬁculties  
in obtaining goods and services on commercially acceptable terms 
if at all
in addition we may have limited access to andor supply of 
biological materials such as cells animal products or byproducts 
furthermore government regulations in multiple jurisdictions could 
result in restricted access to use or transport of such materials 
loss of access to sufﬁcient sources of such materials or tighter 
restrictions on the use of such materials may interrupt or prevent 
our research activities as planned andor increase our costs further 
information is contained in the managing sourcing risk section on 
page 35
legal regulatory and compliance risks
adverse outcome of litigation andor governmental investigations
we may be subject to any number of legal proceedings andor 
governmental investigations note 25 to the financial statements 
includes information about material legal proceedings in which we 
are currently involved such investigations or legal proceedings 
regardless of their outcome could be costly divert management 
attention or damage our reputation and demand for our products
litigation particularly in the us is inherently unpredictable and 
unexpectedly high awards of damages can result if astrazeneca 
receives an adverse verdict in many cases particularly in the us 
the practice of the plaintiff bar is to claim damages compensatory 
punitive and statutory in extremely high amounts accordingly  
it is difﬁcult to quantify the potential exposure to claims in many 
proceedings of the type referred to in note 25 to the financial 
statements unfavourable resolution of current and similar future 
proceedings could have a material adverse effect on our ﬁnancial 
condition and results of operations particularly where such 
circumstances are not covered by insurance we may become 
astrazeneca annual report and form 20f information 2010
corporate governance additional information financial statements overview business review
risk 101 subject to ﬁnes penalties and other monetary andor nonmonetary 
sanctions andor may be required to make signiﬁcant provisions  
in our accounts related to legal proceedings andor governmental 
investigations which could have a material adverse effect on our 
ﬁnancial condition and results of operations
legal proceedings regarding business practices 
the marketing promotional clinical and pricing practices of 
pharmaceutical manufacturers as well as the manner in which 
manufacturers interact with purchasers prescribers and patients 
are subject to extensive regulation litigation and government 
investigation many companies including astrazeneca have been 
subject to claims related to these practices asserted by federal and 
state governmental authorities and private payers and consumers 
these have resulted in substantial expense and other signiﬁcant 
consequences to astrazeneca for example see note 25 to the 
financial statements for a discussion of litigation and investigations 
regarding sales and marketing practices as well as pricing  
litigation it is possible that additional such claims could be made  
in the future as a general matter these types of claims can result  
in criminal liability ﬁnes penalties or other monetary or non
monetary remedies
substantial product liability claims 
given the widespread impact that prescription drugs may have  
on the health of large patient populations pharmaceutical 
biopharmaceutical and medical device companies have historically 
been subject to large product liability damages claims settlements 
and awards for injuries allegedly caused by the use of their 
products adverse publicity relating to the safety of a product or of 
other competing products may increase the risk of product liability 
claims substantial product liability claims that result in court 
decisions against us or in the settlement of proceedings could have 
a material adverse effect on our ﬁnancial condition and results of 
operations particularly where such circumstances are not covered 
by insurance we are currently subject to extensive product liability 
litigation in relation to seroquel and further details about this are 
set out in note 25 to the financial statements from page 178 
information about our approach to patient safety is set out in the 
patient safety section from page 44
failure to adhere to applicable laws rules and regulations 
we operate globally in complex legal and regulatory environments 
any failure to comply with applicable laws rules and regulations  
in these jurisdictions may result in civil andor criminal legal 
proceedings being ﬁled against us or in us becoming subject to 
regulatory sanctions which could have a material adverse effect on 
the conduct of our business our ﬁnancial condition and results of 
operations regulatory authorities have wideranging administrative 
powers to deal with any failure to comply with continuing regulatory 
oversight and this could affect us whether such failure is our own 
or that of third parties with whom we have relationships as these 
laws rules and regulations change or as governmental 
interpretation of these laws rules and regulations evolves prior 
conduct may no longer be sufﬁcient to ensure ongoing compliance
for example once a product has been approved for marketing  
by regulatory authorities it is subject to continuing control and 
regulation such as the manner of its manufacture distribution 
marketing and safety surveillance in addition any amendments  
that are made to the manufacturing distribution marketing and 
safety surveillance processes of our products may require additional 
regulatory approvals which could result in signiﬁcant additional 
costs andor disruption to these processes such amendments 
may be imposed on us as a result of the continuing inspections to 
which we are subject or that may be made at our discretion it is 
possible for example that regulatory issues concerning compliance 
with current good manufacturing practice or pharmacovigilance  
ie postmarketing safety surveillance regulations for pharmaceutical 
products could arise and lead to loss of product licences product 
recalls and seizures interruption of production leading to product 
shortages and delays in the approvals of new products pending 
resolution of the issues
environmentaloccupational health and safety liabilities
we have environmental andor occupational health and safety 
related liabilities at some currently or formerly owned leased and 
third party sites the most signiﬁcant of which are detailed in note 
25 to the financial statements these liabilities are carefully 
managed by designated technical legal and business personnel 
and there is no reason for us to believe that associated current  
and expected expenditure andor risks are likely to have a material 
adverse effect on our ﬁnancial condition and results of operations 
as a general matter but to the extent that they exceed applicable 
provisions they could have a material adverse effect on our ﬁnancial 
condition and results of operations for the relevant period in 
addition a change in circumstances including a change in 
applicable laws or regulations may result in such an effect
a signiﬁcant noncompliance issue or other environmental or 
occupational health or safety incident for which we are responsible 
could result in our being liable to pay compensation ﬁnes or 
remediation costs in some circumstances such liability could have 
a material adverse effect on our ﬁnancial condition and results of 
operations in addition our ﬁnancial provisions for any obligations 
that we may have relating to environmental or occupational health 
and safety liabilities may be insufﬁcient if the assumptions 
underlying the provisions including our assumptions regarding  
the portion of waste at a site for which we are responsible prove 
incorrect or if we are held responsible for additional contamination 
or occupational health and safety related claims
economic and ﬁnancial risks
adverse impact of a sustained economic downturn 
a variety of signiﬁcant risks may arise from a sustained global 
economic downturn including those referred to here additional 
pressure from governments and other healthcare payers on 
medicine prices and volumes of sales in response to recessionary 
pressures on budgets may cause a slowdown or a decline in 
growth in some markets in some cases those governments most 
severely impacted by the economic downturn may seek alternative 
ways to settle their debts through for example the issuance of 
government bonds which might trade at a discount to the value  
of the debt in addition the group’s customers may cease to trade 
which in turn may result in losses from writing off debts further  
we are highly dependent on being able to access a sustainable ﬂow  
of liquid funds due to the high ﬁxed costs of operating an innovation
driven global prescriptionbased biopharmaceutical business and 
the long and uncertain development cycles for our products in a 
sustained andor severe economic downturn ﬁnancial institutions 
that hold our cash and other shortterm deposits may cease to 
trade and there can be no guarantee that we will be able to access 
our assets without a protracted expensive and uncertain process  
if at all although we have adopted conservative cash management 
and treasury policies to mitigate this risk further information on 
which is contained in the financial risk management policies 
section on page 90 we cannot be certain that these will be 
completely effective should a number of major ﬁnancial institutions 
cease to trade additionally if we need access to external sources 
of ﬁnancing to sustain andor grow our business such as the debt 
or equity capital ﬁnancial markets this may not be available on 
commercially acceptable terms if at all in the event of a severe  
astrazeneca annual report and form 20f information 2010 102 risk
risk andor sustained economic downturn this may particularly be the  
case in the event of any default by the group on its debt obligations 
which may have materially adverse consequences on our ability  
to secure debt funding in the future or generally on our ﬁnancial 
condition further information on debtfunding arrangements  
is contained in the financial risk management policies section  
on page 90
impact of ﬂuctuations in exchange rates 
as a global business currency ﬂuctuations can signiﬁcantly affect 
our results of operations which are accounted for in us dollars 
approximately 41 of our global 2010 sales were in the us which 
is expected to remain our largest single market for the foreseeable 
future sales in other countries are predominantly in currencies 
other than the us dollar including the euro japanese yen 
australian dollar and canadian dollar we also have a growing 
exposure to emerging market currencies although the exchange 
rates of some of these currencies are linked to the us dollar major 
components of our cost base are located in the uk and sweden 
where an aggregate of approximately 285 of our employees are 
based movements in the exchange rates used to translate foreign 
currencies into us dollars may therefore have a material adverse 
effect on our ﬁnancial condition and results of operations 
additionally some of our subsidiaries import and export goods  
and services in currencies other than their own functional currency 
and so the results of such subsidiaries could be affected by 
currency ﬂuctuations arising between the transaction dates and  
the settlement dates for these transactions further information  
is contained in note 23 to the financial statements from page 168
credit and return on substantial investments
as part of its normal operations the group will hold signiﬁcant cash 
balances the amount of cash held at any point reﬂects the level  
of cash ﬂow generated by the business and the timing of the use  
of that cash the majority of excess cash is centralised within the 
group treasury function for investment and as such is subject to 
counterparty risk on the principal invested see the financial risk 
management policies section on page 90 for details of how the 
group seeks to mitigate this risk
limited third party insurance coverage 
recent insurance loss experience in the pharmaceutical industry 
including product liability exposures has increased the cost of and 
narrowed the coverage afforded by pharmaceutical companies’ 
product liability insurance in order to contain insurance costs in 
recent years we have continued to adjust our coverage proﬁle 
accepting a greater degree of uninsured exposure the group has 
not held product liability insurance since february 2006 in addition 
where claims are made under insurance policies insurers may 
reserve the right to deny coverage on various grounds if such 
denial of coverage is ultimately upheld this could result in material 
additional charges to our earnings an example of a dispute with 
insurers relating to the availability of insurance coverage and in 
relation to which costs incurred by the group may not ultimately  
be recovered through such coverage is included in note 25 to  
the financial statements in the seroquel – product liability section 
on page 190
taxation 
the integrated nature of our worldwide operations can produce 
conﬂicting claims from revenue authorities as to the proﬁts to be 
taxed in individual territories the resolution of these disputes can 
result in a reallocation of proﬁts between jurisdictions and an 
increase or decrease in related tax costs and has the potential to 
affect our cash ﬂows and eps claims regardless of their merits  
or their outcome are costly divert management attention and may 
adversely affect our reputation
the majority of the jurisdictions in which we operate have double 
tax treaties with other foreign jurisdictions which enable us to 
ensure that our revenues and capital gains do not incur a double 
tax charge if any of these double tax treaties should be withdrawn 
or amended especially in a territory where a member of the group 
is involved in a taxation dispute with a tax authority in relation to 
crossborder transactions such withdrawal or amendment could 
have a material adverse effect on our ﬁnancial condition and results 
of operations as could a negative outcome of a tax dispute or a 
failure by the tax authorities to agree through competent authority 
proceedings see the financial risk management policies section  
on page 90 for tax risk management policies and note 25 to the 
financial statements on page 195 for details of current tax disputes
pensions 
a particular risk relates to the group’s pension obligations the 
single largest of which is the uk pension fund the obligations are 
backed by assets invested across the broad investment market 
sustained falls in these asset values will put a strain on funding 
which may result in requirements for additional cash restricting 
cash available for strategic business growth similarly if the liabilities 
rise as a result of a sustained low interest rate environment there 
will be a strain on funding from the business the likely increase  
in the ias 19 accounting deﬁcit generated by any of these factors 
may cause the ratings agencies to review our credit rating with the 
potential to negatively affect our ability to raise debt see note 18  
to the financial statements from page 162 for further details of the 
group’s pension obligations
astrazeneca annual report and form 20f information 2010
corporate governance additional information financial statements overview business review
risk 103 astrazeneca annual report and form 20f information 2010 104 delivering our strategy rd
in a world where there is increasing 
pressure on healthcare budgets we can  
be more effective if we can identify the 
patients likely to beneﬁt most from particular 
medicines we have experience of this 
personalised healthcare approach with our 
lung cancer therapy iressa 
at one stage iressa had its submissions withdrawn because 
its beneﬁts failed to reach statistical signiﬁcance in the overall 
population however it worked well on some patients and 
subsequent analysis of data from clinical studies showed that  
it was superior to conventional chemotherapy in 1st line 
treatment of lung cancer patients who had a mutation of the 
egfr gene 
identifying the right treatment for the right patient at the right 
time and to embed it as part of routine clinical practice was  
the major challenge for iressa we worked with a variety of 
healthcare professionals hcps to improve education and best 
practice in egfr testing workshops involving pathologists 
oncologists and respiratory physicians were run around the 
world these were complemented by digital activities including 
websites elearning and even iphone applications to promote 
best practice and facilitate routine diagnostic testing
as the ﬁrst personalised medicine in lung cancer iressa is 
pioneering not just for the beneﬁts it offers patients but for the 
way in which it has brought together different groups of hcps 
and changed the way patients are tested and treated as part of 
routine clinical practice
      how do i 
ﬁnd a cancer 
treatment 
that’s right 
for me
because health connects us all
for more information go to the website  
egfrmutationcom astrazeneca annual report and form 20f information 2010 delivering our strategy rd 105
corporate governance additional information financial statements overview business review
how is our business 
structured and 
managed
we have a clear 
structure in which 
the board reserves 
and delegates  
its powers
corporate governance 105 astrazeneca annual report and form 20f information 2010 1 louis schweitzer 68
nonexecutive chairman chairman of the nomination and 
governance committee and member of the remuneration committee
appointed as a director in march 2004 and as chairman in january 
2005 louis schweitzer has extensive leadership experience at both 
executive and nonexecutive levels in large multinational companies 
he is nonexecutive chairman of ab volvo and a nonexecutive 
director of bnpparibas veolia environnement sa and l ’oréal sa 
previously he has held the roles of nonexecutive chairman 
chairman and chief executive ofﬁcer of renault sa 
2 david brennan 57
executive director and chief executive ofﬁcer
appointed as a director in march 2005 and as ceo in january 
2006 david brennan is president of the international federation  
of pharmaceutical manufacturers associations ifpma and  
a member of the executive board of the european federation  
of pharmaceutical industries and associations efpia he is a  
past chairman of the board of the pharmaceutical research and 
manufacturers of america phrma and remains a member of the 
phrma board from 2001 until january 2006 he was president 
and chief executive ofﬁcer of the company’s north american 
subsidiary he was chairman of the board of the southeastern 
pennsylvania chapter of the american heart association 2004
2006 he began his career in 1975 at merck where he started as  
a sales representative in the us division and later worked in sales 
and marketing management in the us and international divisions 
he joined astra merck in 1992 and helped to build the joint venture 
into a multibillion dollar business in the us he is an alumnus of 
gettysburg college where he studied business administration
3 simon lowth 49 
executive director and chief financial ofﬁcer
appointed as a director and as cfo in november 2007  simon 
lowth is also a nonexecutive director of standard chartered plc 
he was previously at scottishpower where he was finance director 
a position he left following completion of the sale of the company to 
iberdrola his move to scottishpower followed 15 years’ experience 
with the global management consultancy mckinsey  company 
where he advised leading multinational companies on a wide range 
of strategic ﬁnancial and operational issues he has an engineering 
degree from cambridge university and an mba from the london 
business school 
4 michele hooper 59 
senior independent nonexecutive director chairman of the audit 
committee and member of the nomination and governance committee
appointed as a director in july 2003 and as senior independent 
nonexecutive director in april 2007  michele hooper is a 
recognised corporate governance expert and has considerable 
healthcare industry expertise she is president and chief executive 
ofﬁcer of the directors’ council a private company which she 
cofounded in 2003 that works with corporate boards to increase 
their independence effectiveness and diversity and a non
executive member of the boards of unitedhealth group inc  
ppg industries inc and warner music group inc previously  
she was president and chief executive ofﬁcer of stadtlander  
drug company inc and corporate vicepresident and president 
international businesses of caremark international inc
5 bruce burlington 62
nonexecutive director and member of the science committee
appointed as a director in august bruce burlington is a 
pharmaceutical product development and regulatory affairs 
consultant and brings extensive experience in those areas to the 
board he is also a nonexecutive board member of cangene 
corporation and a member of the scientiﬁc advisory boards of the 
international medica foundation and h lundbeck as previously 
he spent 17 years with the fda serving as director of the fda’s 
center for devices and radiological health as well as holding a 
number of senior roles in the center for drug evaluation and 
research after leaving the fda he served in a series of senior 
executive positions at wyeth now part of pﬁzer inc
6 jeanphilippe courtois 50
nonexecutive director and member of the audit committee
appointed as a director in february 2008 jeanphilippe courtois 
has over 25 years’ experience in the global technology industry  
and is president of microsoft international senior vicepresident  
of microsoft corporation a board member of planet finance  
and microsoft’s ofﬁcial representative at the institut montaigne 
previously he was chief executive ofﬁcer and president of 
microsoft emea and has served as cochairman of the world 
economic forum’s global digital divide initiative task force and  
on the european commission information and communication 
technology task force in 2009 he also served as an eu 
ambassador for the year of creativity and innovation 
1 2
6 7 8
3
astrazeneca annual report and form 20f information 2010 106 board of directors and senior executive team
board of directors and senior executive team
board of directors at 31 december 7 jane henney 63 
nonexecutive director and member of the audit committee the 
nomination and governance committee and the science committee
appointed as a director in september 2001 jane henney has 
extensive clinical and health policy expertise and is currently 
professor of medicine university of cincinnati a nonexecutive 
member of the boards of amerisourcebergen corporation and 
cigna corporation and a board member of the commonwealth 
fund and china medical board previous positions within the health 
industry include her role as commissioner of food and drugs at the 
fda and senior vicepresident and provost for health affairs 
university of cincinnati academic health center
8 rudy markham 64
nonexecutive director and member of the audit committee and the 
remuneration committee
appointed as a director in september 2008 rudy markham has 
signiﬁcant international business and ﬁnancial experience having 
formerly held a number of senior commercial and ﬁnancial positions 
worldwide with unilever culminating in his appointment as chief 
financial ofﬁcer of unilever he is currently chairman and non
executive director of moorﬁelds eye hospital nhs foundation  
trust and a nonexecutive member of the boards of united parcel 
services inc the uk financial reporting council standard 
chartered plc and legal  general plc he is also a nonexecutive 
member of the board of the uk foreign and commonwealth ofﬁce 
a fellow of the chartered institute of management accountants and 
a fellow of the association of corporate treasurers 
9 dame nancy rothwell 55
nonexecutive director chairman of the science committee and 
member of the remuneration committee
appointed as a director in april 2006 and has responsibility for 
overseeing responsible business nancy rothwell is a 
distinguished life scientist and academic and is the president and 
vicechancellor of the university of manchester she is also 
president of the society of biology previously she has served as 
president of the british neuroscience association and has been  
on the councils of the medical research council the royal society 
the biotechnology and biological sciences research council  
the academy of medical sciences and cancer research uk 
10 john varley 54
nonexecutive director chairman of the remuneration committee 
and member of the nomination and governance committee
appointed as a director in july 2006 john varley was formerly 
group chief executive of the barclays group having held a 
number of senior positions with the bank during his career 
including that of group finance director he brings additional 
international executive business leadership experience to the 
board he is also a nonexecutive director of blackrock inc 
chairman of business action on homelessness president of  
the employers’ forum on disability a member of the international 
advisory panel of the monetary authority of singapore and 
honorary president of the uk drug policy commission 
11 marcus wallenberg 54 
nonexecutive director and member of the science committee 
appointed as a director in april 1999 marcus wallenberg has 
international business experience across a broad range of 
industry sectors including the pharmaceutical industry from his 
directorship with astra ab prior to 1999 he is the chairman of 
skandinaviska enskilda banken ab ab electrolux and saab ab 
vicechairman of telefonaktiebolaget lm ericsson publ and a 
nonexecutive director of stora enso oyj and the knut and alice 
wallenberg foundation
other ofﬁcers of the company at 31 december included members of the senior executive 
team as set out on page 108 and adrian kemp company secretary
shriti vadera was appointed as a nonexecutive director and a member of the audit 
committee with effect from 1 january 2011 
4 5
9 10 11
astrazeneca annual report and form 20f information 2010
corporate governance additional information financial statements overview business review
board of directors and senior executive team 107 1 david brennan
chief executive ofﬁ cer
see page 106
2 simon lowth
chief financial ofﬁ cer
see page 106
3 martin mackay
president global rd
martin mackay joined astrazeneca in july he was previously at 
pﬁ zer inc where he was head of pharmatherapeutics rd and a 
member of the pﬁ zer inc executive leadership team prior to joining 
pﬁ zer inc in 1995 he held several discovery and development roles 
culminating in his appointment as head of molecular and cell 
biology cns research at cibageigy he has a degree in 
microbiology from heriotwatt university and a phd in molecular 
genetics from the university of edinburgh
4 jeff pott
general counsel
jeff pott was appointed general counsel in january 2009 and has 
overall responsibility for all aspects of astrazeneca’s legal and 
intellectual property function he joined astrazeneca in 1995 and 
has worked in various litigation roles where he has had 
responsibility for intellectual property antitrust and product liability 
litigation prior to joining astrazeneca he spent ﬁ ve years at the us 
legal ﬁ rm drinker biddle and reath llp  where he specialised in 
pharmaceutical product liability litigation and antitrust advice and 
litigation he received his bachelor’s degree in political science from 
wheaton college and his juris doctor degree from villanova 
university school of law
5 david smith
executive vicepresident global operations and information services
david smith joined astrazeneca in 2006 as executive vice
president operations he leads astrazeneca’s global manufacturing 
and supply organisation and is also responsible for the safety 
health and environment regulatory compliance procurement and 
engineering functions and has overall responsibility for information 
services he spent his early career in pharmaceuticals initially with 
the wellcome foundation in the uk he subsequently spent nine 
years in the consumer goods sector working for estée lauder and 
timberland in senior supply chain roles in 2003 he returned to the 
pharmaceutical sector and joined novartis in switzerland
6 lynn tetrault 
executive vicepresident human resources and corporate affairs
lynn tetrault was appointed executive vicepresident human 
resources and corporate affairs in 2007  having previously been 
vicepresident corporate affairs she has also held the role of 
vicepresident hr global drug development and vicepresident 
hr for the us subsidiary of astrazeneca following the merger 
between astra and zeneca she started her career in private law 
practice where she specialised in general corporate and healthcare 
law she joined astra usa in 1993 as associate general counsel 
in the company’s legal department she received her bachelor’s 
degree from princeton university and her law degree from the 
university of virginia law school
7 tony zook
executive vicepresident global commercial operations
tony zook was appointed executive vicepresident of 
astrazeneca’s global commercial organisation in january 2010 
he has responsibility for worldwide sales and marketing activities 
as well as the commercial infrastructure in support of those efforts 
prior to his current role he was president and ceo for 
astrazeneca’s us business and headed astrazeneca’s global 
marketing function he was also president of medimmune he has 
held various other positions in astrazeneca’s sales and marketing 
organisation he joined astra usa in 1997 as vicepresident 
marketing and sales having begun his pharmaceutical career at 
berlex laboratories he earned a bachelor’s degree in biology from 
frostburg university and an associate’s degree in chemical 
engineering from pennsylvania state university he is a member of 
the board for first state innovation the pennsylvania division of the 
american cancer society and is a member of the board of trustees 
for the healthcare leadership council
senior executive team at 31 december
4 5 6 7
1 2 3
astrazeneca annual report and form 20f information 2010 108 board of directors and senior executive team
board of directors and senior executive team “the board regards the setting maintenance 
and review of high standards of corporate 
governance as an essential part of our work 
during 2010 we reviewed the revised uk 
corporate governance code and no signiﬁcant 
changes were required to our corporate 
governance practices as a result”
in this part of the annual report we explain  
our approach to corporate governance and 
describe in general terms how our business is 
organised and managed
corporate governance
we have prepared this annual report with reference to the 
combined code published by the uk financial reporting council 
frc in june 2008 and the new uk corporate governance code 
published by the frc in may 2010 together the uk corporate 
governance codes this report together with other sections  
of this annual report describes how we apply the main principles 
of good governance in the uk corporate governance codes  
we have complied throughout the accounting period with the 
provisions of the combined code although the new uk corporate 
governance code only applies for accounting periods beginning  
on or after 29 june 2010 we have taken the decision to comply with 
the new provisions in line with best practice since its publication  
in may 2010 both the combined code and uk corporate 
governance code are available on the frc’s website frccouk
leadership
the roles of chairman and ceo are split louis schweitzer our 
nonexecutive chairman is responsible for leadership of the board 
our ceo david brennan leads the set and has executive 
responsibility for running our business the board comprises 10 
nonexecutive directors including the chairman and two 
executive directors – the ceo and the cfo simon lowth
all directors are collectively responsible for our longterm success 
in addition the nonexecutive directors are responsible for 
exercising independent objective judgement in respect of board 
decisions and for scrutinising and challenging the actions of 
executive management
the board holds an annual strategy review day which is attended 
by all set members the ceo the cfo and the set take the lead 
in developing our strategy which is then reviewed constructively 
challenged and approved by the board at the strategy review day
michele hooper who joined the board as a nonexecutive director 
in 2003 was appointed as our senior independent nonexecutive 
director in april 2007  the role of the senior independent director  
is to provide a sounding board for the chairman and to serve as  
an intermediary for the other directors when necessary the senior 
independent director is also available to shareholders if they have 
concerns that contact through the normal channels of chairman or 
executive directors has failed to resolve or for which such contact 
is inappropriate 
there are four principal board committees – the audit committee 
the remuneration committee the nomination and governance 
committee and the science committee the membership and 
work of these committees is described below in addition there 
may from time to time be constituted ad hoc board committees 
for speciﬁc projects or tasks in these cases the scope and 
responsibilities of the committee are documented the board 
provides adequate resources to enable each committee to 
undertake its duties
reserved matters and delegation of authority
the board maintains and periodically reviews a list of matters that 
are reserved to and can only be approved by the board these 
include the appointment termination and remuneration of any 
director approval of the annual budget any item of ﬁxed capital 
expenditure or any proposal for the acquisition or disposal of an 
investment or business which exceeds 150 million the raising  
of capital or loans by the company subject to certain exceptions 
the giving of any guarantee in respect of any borrowing of the 
company and allotting shares of the company the matters that 
have not been expressly reserved to the board are either delegated 
by the board to its committees or to the ceo
the ceo is responsible to the board for the management 
development and performance of our business in relation to those 
matters in respect of which he has been delegated authority from 
the board
although the ceo retains full responsibility for the authority 
delegated to him by the board he has established and chairs  
the set which is the vehicle through which he exercises certain  
of that authority in respect of our business
the roles of the board the board committees the chairman the 
ceo and the set are documented as are the board’s delegated 
authorities and reserved powers the means of operation of the 
business and the roles of corporate functions
operation of the board
the board is responsible for setting our strategy and policies 
oversight of risk and corporate governance and also monitors 
progress towards meeting our objectives and annual plans the 
board discharges these responsibilities through a programme of 
meetings that includes regular reviews of ﬁnancial performance  
and critical business issues and the formal annual strategy review 
day the board also aims to ensure that a good dialogue with our 
shareholders takes place and that their issues and concerns are 
understood and considered
louis schweitzer
chairman and chairman of the  
nomination and governance committee
astrazeneca annual report and form 20f information 2010
corporate governance additional information financial statements overview business review
corporate governance report 109
corporate governance report the board held six meetings and its annual strategy review day  
in 2010 all the meetings took place in london uk the board is 
currently scheduled to meet six times and hold a strategy review 
day in 2011 and will meet at such other times as may be required  
to conduct business
as part of the business of each board meeting the ceo typically 
submits a progress report on each key business area giving details 
of progress against the goals the board has approved to ensure 
that the board has good visibility of the key operating decisions of 
the business members of the set routinely attend board meetings 
on a rotational basis and board members regularly meet other 
senior executives throughout the year the board also receives 
accounting and other management information about our 
resources and presentations from internal and external speakers 
on legal governance and regulatory developments at the end of 
board meetings the nonexecutive directors meet without the 
executive directors present to review and discuss any matters that 
have arisen during the meeting andor such other matters as may 
appear to the nonexecutive directors to be relevant in properly 
discharging their duty to act independently
board effectiveness
composition of the board
the nomination and governance committee and where 
appropriate the full board regularly review the composition of  
the board and the status of succession to both senior executive 
management and boardlevel positions directors have regular 
contact with and access to succession candidates for senior 
executive management positions
the board aims to maintain a balance in terms of the range of 
experience and skills of individual board members which includes 
relevant international business pharmaceutical industry and 
ﬁnancial experience as well as appropriate scientiﬁc and regulatory 
knowledge the biographies of board members set out on pages 
106 to 107 give more information about current directors in this 
respect the board views gender nationality and cultural diversity 
among board members as important considerations when 
reviewing the composition of the board the following changes  
to the composition of the board have occurred during the period 
covered by this annual report
  bo angelin and john buchanan both nonexecutive directors 
retired from the board on 29 april 2010
  bruce burlington was appointed as a nonexecutive director  
and member of the science committee with effect from  
1 august 2010
  shriti vadera was appointed as a nonexecutive director and a 
member of the audit committee with effect from 1 january 2011
independence of the nonexecutive directors
during 2010 the board considered the independence of each 
nonexecutive director for the purposes of the uk corporate 
governance codes and the corporate governance listing standards 
of the nyse listing standards with the exception of marcus 
wallenberg the board considers that all of the nonexecutive 
directors are independent louis schweitzer was considered by  
the board to be independent upon his appointment as chairman  
in accordance with the uk corporate governance codes the test 
of independence is not appropriate in relation to the chairman after 
his appointment
marcus wallenberg was appointed as a director of astra in may 
1989 and subsequently became a director of the company in 1999 
until september 2005 he was a member of the board of directors 
and the chief executive ofﬁcer of investor ab which has a 37 
interest in the issued share capital of the company as at 27 january 
2011 wallenberg family foundations remain investor ab’s largest 
shareholders in terms of votes controlled for these reasons the 
board does not believe that marcus wallenberg can be determined 
independent under the uk corporate governance codes 
however the board believes that he has brought and continues  
to bring considerable business experience and makes a valuable 
contribution to the work of the board
the board has also considered in particular the position of michele 
hooper who joined the board of unitedhealth group as a non
executive director in 2007  the board’s approval of this appointment 
was conditional on michele hooper resigning from the board of 
unitedhealth group in the event of a conﬂict or nonindependence 
it is the board’s view that michele hooper is independent and that 
she discharges her duties in a properly independent manner 
constructively and appropriately challenging the executive directors 
and the board
jane henney is a nonexecutive director of amerisourcebergen 
corporation and cigna corporation both of which are customers 
of the group in the us the board has considered these 
relationships and concluded that they did not compromise her 
independence
conﬂicts of interest
the articles enable the directors to authorise any situation in  
which a director has an interest that conﬂicts or has the potential to 
conﬂict with the company’s interests and which would otherwise be 
a breach of the director’s duty under section 175 of the companies 
act 2006 the board has a formal system in place for directors to 
declare such situations to be considered for authorisation by those 
directors who have no interest in the matter being considered  
in deciding whether to authorise a situation the nonconﬂicted 
directors must act in the way they consider in good faith would  
be most likely to promote the success of the company and they 
may impose limits or conditions when giving the authorisation or 
subsequently if they think this is appropriate situations considered 
by the board and authorisations given are recorded in the board 
minutes and in a register of conﬂicts maintained by the company 
secretary and reviewed annually by the board the board 
considers that this system continues to operate effectively
appointments to the board
the nomination and governance committee section on page 115 
gives information about the appointment process for new directors
newly appointed directors are provided with comprehensive 
documentation containing information about the group and their 
role as nonexecutive directors they also typically attend tailored 
induction programmes that take account of their individual skills  
and experience
time commitment
our expectation is that nonexecutive directors should be prepared 
to commit about 15 days per annum as a minimum to the group’s 
business in practice board members’ time commitment usually 
exceeds this minimum expectation when all the work that they 
undertake for the group is considered particularly in the case of the 
chairman of the board and the chairmen of the board committees 
as well as their work in relation to formal board and board 
committee meetings the nonexecutive directors also commit 
time throughout the year to meetings and telephone calls with 
various levels of executive management visits to astrazeneca’s 
sites throughout the world and for new nonexecutive directors 
induction sessions meetings and site visits
astrazeneca annual report and form 20f information 2010 110 corporate governance report
corporate governance report on occasions when a director is unavoidably absent from a board 
or board committee meeting for example through illness or where 
a meeting clashes with his or her existing commitments he or she 
still receives and reviews the papers for the meeting and typically 
provides verbal or written input ahead of the meeting usually 
through the chairman of the board or the chairman of the board 
committee so that his or her views are made known and 
considered at the meeting in addition given the nature of the 
business to be conducted some board meetings are convened  
at short notice which can make it difﬁcult for some directors to 
attend due to prior commitments
information and support
the company secretary is responsible to the chairman for ensuring 
that all board and board committee meetings are properly 
conducted that the directors receive appropriate information prior 
to meetings to enable them to make an effective contribution and 
that governance requirements are considered and implemented
the company maintained directors’ and ofﬁcers’ liability insurance 
cover throughout 2010 the directors are also able to obtain 
independent legal advice at the expense of the company as 
necessary in their capacity as directors
the company has entered into a deed of indemnity in favour of 
each board member since 2006 these deeds of indemnity are still 
in force and provide that the company shall indemnify the directors 
to the fullest extent permitted by law and the articles in respect of 
all losses arising out of or in connection with the execution of their 
powers duties and responsibilities as directors of the company  
or any of its subsidiaries this is in line with current market practice 
and helps us attract and retain highquality skilled directors
performance evaluation
prior to the publication of this annual report the board conducted 
the annual evaluation of its own performance and that of its 
committees and individual directors this was carried out internally 
using a series of webbased questionnaires that covered a range  
of topics including the nature and level of the board’s interaction 
with the group’s management the quality quantity and scope of 
information which ﬂows to the board from management and the 
way in which it ﬂows the content of and presentations to board 
meetings the composition of the board the practical arrangements 
for the work of the board and the work and operation of the board’s 
committees overall it was concluded that the board and its 
committees were operating in an effective and constructive manner
as part of the assessment process each nonexecutive director 
received feedback about his or her individual performance the 
nonexecutive directors reviewed the performance of the ceo  
and cfo in their absence in addition the board under the 
chairmanship of the senior independent nonexecutive director 
reviewed the performance of the chairman in his absence each 
director continues to perform effectively and to demonstrate 
commitment to the role
the last occasion on which the board’s annual performance 
evaluation was externally facilitated was in 2008 and the board 
intends to comply with the uk corporate governance code 
guidance that the evaluation should be externally facilitated at least 
every three years
reelection of directors
in accordance with article 66 of the articles all directors retire  
at each agm and may offer themselves for reelection by 
shareholders accordingly all the directors will retire at the agm  
in april 2011 the notice of agm will give details of those directors 
seeking reelection
accountability
risk management and internal control
the nonexecutive directors have various responsibilities 
concerning the integrity of ﬁnancial information internal controls  
and risk management
the board has overall responsibility for our system of internal 
controls and risk management policies and is also responsible  
for reviewing their effectiveness during 2010 the directors have 
continued to review the effectiveness of our system of controls  
risk management and our highlevel internal control arrangements 
these reviews have included an assessment of internal controls 
and in particular ﬁnancial operational and compliance controls  
and risk management and their effectiveness supported by 
management assurance of the maintenance of controls reports 
from group internal audit gia as well as the external auditor on 
matters identiﬁed in the course of its statutory audit work the 
system is designed to manage rather than eliminate the risk of 
failure to achieve business objectives and can only provide 
reasonable not necessarily absolute assurance of effective 
operation and compliance with laws and regulations
board and board committee meeting attendance in 2010
name board audit remuneration nomination and governance
bo angelin
1
2 2 – – –
david brennan 6 6 – – –
john buchanan
2
2 2 2 2 1 3 –
bruce burlington
3
3 3 – – –
jeanphilippe courtois 5 6 3 4 – –
jane henney 5 6 4 4 – 4 6
michele hooper 6 6 4 4 – 6 6
simon lowth 6 6 – – –
rudy markham
4
6 6 3 4 4 4 –
nancy rothwell 5 6 – 6 7 –
louis schweitzer 6 6 – 7 7 6 6
john varley 5 6 – 7 7 5 6
marcus wallenberg
5
4 6 – – –
1
 bo angelin retired from the board on 29 april 2010
2
 john buchanan retired from the board on 29 april 2010
3
 bruce burlington was appointed as a director with effect from 1 august 2010
4
 rudy markham was appointed as a member of the remuneration committee with effect from 29 april 2010
5
 marcus wallenberg was appointed as a member of the science committee with effect from 28 april 2010
astrazeneca annual report and form 20f information 2010
corporate governance additional information financial statements overview business review
corporate governance report 111 underpinning these reviews is an annual ‘letter of assurance’ 
process by which responsible managers conﬁrm the adequacy of 
their systems of internal ﬁnancial and nonﬁnancial controls their 
compliance with group policies and relevant laws and regulations 
including the industry’s regulatory requirements and that they have 
reported any control weaknesses through our ‘continuous 
assurance’ process
the internal control framework has been in operation for the whole 
of 2010 and continues to operate up to the date of the approval of 
this annual report the directors believe that the group maintains 
an effective embedded system of internal controls and complies 
with the turnbull report guidance and in the view of the directors 
no signiﬁcant failings have been identiﬁed in the system
further information about the ways in which we manage our 
business risks is set out in the risk section from page 94 which 
also contains a list of the principal risks and uncertainties that  
we face
remuneration
information about our approach to remuneration and the role and 
work of the remuneration committee including our policy on 
executive remuneration is set out in the directors’ remuneration 
report from page 119
relations with shareholders
in our ﬁnancial and business reporting to shareholders and other 
interested parties by means of quarterly halfyearly and annual 
reports we aim to present a balanced and understandable 
assessment of our strategy ﬁnancial position and prospects
we make information about the group available to shareholders 
through a range of media including a fully integrated html corporate 
website astrazenecacom containing a wide range of data of 
interest to institutional and private investors we consider our 
website to be an important means of communication with our 
shareholders 
the company has been authorised by shareholders to place 
shareholder communications such as the notice of agm and this 
annual report on the corporate website in lieu of sending paper 
copies to shareholders unless speciﬁcally requested by 
shareholders while recognising and respecting the fact that some 
of our stakeholders may have different preferences about how they 
receive information from us we will continue to promote the beneﬁts 
of electronic communication given the advantages that this has  
over traditional paperbased communications both in terms of the 
conﬁgurability and accessibility of the information provided and the 
consequent cost savings and reduction in environmental impact 
associated with reduced printing and distribution costs
we have frequent discussions with institutional shareholders on  
a range of issues these include individual meetings with some  
of our largest institutional shareholders to seek their views board 
members are kept informed of any issues and receive regular 
reports and presentations from executive management and our 
brokers in order to assist them to develop an understanding of 
major shareholders’ views about the group from time to time  
we conduct an audit of institutional shareholders to ensure that  
we are communicating clearly with them and that a highquality 
dialogue is being maintained the results of this audit are reported 
to and discussed by the full board
we also respond to individual ad hoc requests for discussions from 
institutional shareholders and analysts our investor relations team 
acts as the main point of contact for investors throughout the year 
as discussed above the senior independent nonexecutive 
director currently michele hooper is also available to shareholders 
if they have concerns that contact through the normal channels of 
chairman ceo andor cfo has failed to resolve or in relation to 
which such contact is inappropriate all shareholders including 
private investors have an opportunity at the agm to put questions 
to members of the board about our operation and performance 
formal notiﬁcation of the agm is sent to shareholders at least  
one month in advance the chairmen of the board committees 
ordinarily attend the agm to answer questions raised by 
shareholders in line with the uk corporate governance code 
details of proxy voting by shareholders including votes withheld are 
given at the agm and are posted on our website following the agm
board committee membership
 
name
 
audit 
 
remuneration 
nomination and  
governance 
 
science 
 
independent
1
bo angelin
2
  
david brennan na 
john buchanan
3
chair
3
 
bruce burlington
jeanphilippe courtois  
jane henney   
michele hooper
4
chair
3
    
simon lowth na
rudy markham 
5
 
nancy rothwell chair 
louis schweitzer chair na
6
 
john varley chair   
marcus wallenberg
7
 
1
 as determined by the board for uk corporate governance codes purposes
2
 bo angelin retired from the board on 29 april 2010
3
 john buchanan retired from the board on 29 april 2010 michele hooper was appointed chairman of the audit committee with effect from 29 april 2010
4
 michele hooper is the senior independent nonexecutive director 
5
 rudy markham was appointed as a member of the remuneration committee with effect from 29 april 2010
6
  louis schweitzer was considered independent by the board upon his appointment as chairman in accordance with the uk corporate governance codes the test of independence is not 
appropriate in relation to the chairman after his appointment
7
 marcus wallenberg was appointed as a member of the science committee with effect from 28 april 2010
astrazeneca annual report and form 20f information 2010 112 corporate governance report
corporate governance report audit committee
the members of the audit committee are michele hooper 
chairman of the audit committee jane henney jeanphilippe 
courtois rudy markham and with effect from her appointment  
to the board on 1 january 2011 shriti vadera they are all non
executive directors the board considers each member to be 
independent under the uk corporate governance codes and under 
the general guidance and speciﬁc criteria of the listing standards 
concerning the composition of audit committees applicable to 
nonus companies john buchanan ceased to be a member and 
chairman of the audit committee upon his retirement from the 
board at the 2010 agm in april 2010 we submitted the required 
annual written afﬁrmation to the nyse conﬁrming our full compliance 
with those standards for the purposes of the uk corporate 
governance codes the board remains satisﬁed that at least one 
member of the committee has recent and relevant ﬁnancial 
experience at its meeting in december the board determined that 
michele hooper and rudy markham are audit committee ﬁnancial 
experts for the purposes of the sarbanesoxley act the deputy 
company secretary acts as secretary to the audit committee
the core terms of reference of the audit committee include 
reviewing and reporting to the board on
  matters relating to the audit plans of the external auditor and  
gia as well as oversight of the work of the global compliance 
function
  our overall framework for internal control over ﬁnancial reporting 
and for other internal controls and processes
  our overall framework for risk management particularly ﬁnancial 
risks
  our accounting policies and practices
  our annual and quarterly ﬁnancial reporting
  compliance with the corporate integrity agreement
the audit committee is responsible for notifying the board of any 
signiﬁcant concerns of the external auditor or the vicepresident 
gia arising from their audit work any matters that may materially 
affect or impair the independence of the external auditor any 
signiﬁcant deﬁciencies or material weaknesses in the design or 
operation of our internal control over ﬁnancial reporting or other 
internal controls and any serious issues of noncompliance  
it oversees the establishment implementation and maintenance  
of our code of conduct and other related policies it monitors  
the company’s response to letters requesting information and 
investigations initiated by regulatory and governmental authorities 
such as the sec and the us department of justice pertaining to 
matters within the ambit of the committee’s work it has established 
procedures for the receipt and handling of complaints concerning 
accounting or audit matters it recommends to the board the 
appointment of the external auditor subject to the approval of the 
company’s shareholders at a general meeting shareholders in  
a general meeting authorise the directors to ﬁx the remuneration  
of the external auditor the committee reviews and approves the 
appointment and dismissal of the vicepresident gia
the audit committee maintains policies and procedures for the 
preapproval of all audit services and permitted nonaudit services 
undertaken by the external auditor the principal purpose of which  
is to ensure that the independence of the external auditor is not 
impaired the policies and procedures cover three categories of 
work – audit services auditrelated services and tax services  
the policies deﬁne the type of work that falls within each of these 
categories and the nonaudit services that the external auditor is 
prohibited from performing under the rules of the sec and other 
relevant uk and us professional and regulatory requirements  
the preapproval procedures permit certain audit auditrelated and 
tax services to be performed by the external auditor during the year 
subject to fee limits agreed with the committee in advance the 
cfo supported by the senior vicepresident group finance 
monitors the status of all services being provided by the external 
auditor the procedures also deal with placing nonaudit work out 
for tender where appropriate authority to approve work in excess 
of the preagreed fee limits is delegated to the chairman of the 
committee in the ﬁrst instance a standing agenda item at 
committee meetings covers the operation of the preapproval 
procedures and regular reports are provided to the full committee
the audit committee held four scheduled meetings in 2010 the 
individual attendance record of members of the committee is set 
out in the board and board committee meeting attendance in 2010 
table on page 111 following each committee meeting the 
chairman of the committee reported to the board on the principal 
matters covered at the meeting and minutes of the meetings were 
circulated to all board members
during 2010 members of the audit committee met individual 
managers or groups of managers on a number of occasions in 
order to gain a deeper insight into areas relevant to the committee’s 
work and to provide an opportunity to discuss speciﬁc areas of 
interest in particular members of the committee travelled to the us 
to meet senior leaders of the us business and to learn what steps 
the business has taken and is taking to ensure compliance with the 
corporate integrity agreement there
during the year in line with its normal practice the audit committee 
also held a number of private meetings without management 
present with the vicepresident gia the global compliance 
ofﬁcer and the lead partners from the company’s external audit 
ﬁrm the purpose of these meetings was to facilitate free and open 
discussions between committee members and those individuals 
separately from the main sessions of the committee which were 
attended by the ceo the cfo and the senior vicepresident 
group finance
during 2010 and january 2011 the business considered and 
discussed by the audit committee included the matters referred  
to below
  our ﬁnancial disclosures were reviewed and various accounting 
matters considered
  reports were received from the external auditor concerning its 
audit of the financial statements of the group and from 
management gia global compliance and the external auditor 
on the effectiveness of our system of internal controls and in 
particular our internal control over ﬁnancial reporting this 
included review and discussion of the results of the ‘continuous 
assurance’ and annual ‘letter of assurance’ processes the 
committee also reviewed quarterly activity reports of audit work 
carried out by gia and the status of followup actions with 
management as well as reports from the global compliance 
function
  the systems and processes that management has developed 
pertaining to risk identiﬁcation classiﬁcation and mitigation
  continuing work to comply with the applicable provisions of the 
sarbanesoxley act in particular the committee regularly 
reviewed the status of compliance with the programme of internal 
controls over ﬁnancial reporting implemented pursuant to section 
404 of the sarbanesoxley act further information about this is 
set out in the sarbanesoxley act section 404 section on page 93
  data about calls made by employees via the azethics telephone 
lines and other routes regarding potential breaches of the code of 
conduct together with the results of inquiries into these matters
astrazeneca annual report and form 20f information 2010
corporate governance additional information financial statements overview business review
corporate governance report 113   quarterly reports were received from the compliance ofﬁcer 
responsible for monitoring the us business’s compliance with  
the corporate integrity agreement
   accounting issues relevant to litigation and taxation matters
  reports from the group treasury function and in particular  
the group’s liquidity and cash position and the appropriateness 
of its cash management policies in the context of the current 
economic situation
  other reports concerning the gia global compliance and 
finance functions including the internal audit plan and progress 
and plans of the global compliance ofﬁcer
  the amount of audit and nonaudit fees of the external auditor 
throughout 2010 the committee was satisﬁed throughout the 
year that the objectivity and independence of the external auditor 
were not in any way impaired by the nature of the nonaudit work 
undertaken by the external auditor during the year the level of 
nonaudit fees charged for such work or any other facts or 
circumstances further information about the audit and nonaudit 
fees for 2010 is disclosed in note 27 to the financial statements 
on page 196
  a review and assessment of the committee’s performance which 
concluded that such performance was satisfactory
in line with best practice we periodically consider how the audit 
requirements of the group are best served in the context of 
business need and the prevailing external environment and against 
the background of this review consider whether to undertake a 
formal tendering programme with audit ﬁrms of appropriate size  
and calibre following discussions at its meeting in january 2011 
the audit committee unanimously recommended to the board that 
a resolution for the reappointment of kpmg audit plc as the 
company’s external auditor be proposed to shareholders at the 
agm in april 2011 based on its experience of working with external 
auditors the committee believes that the quality of the interaction 
with and level of service received from kpmg audit plc were key 
factors supporting this recommendation the committee was also 
satisﬁed that notwithstanding the length of tenure of kpmg audit 
plc kpmg audit plc met the independence criteria under the 
relevant statutory regulatory and ethical standards applicable to 
auditors consistent with current market practice kpmg audit plc’s 
services to the group are provided pursuant to terms of 
engagement which are reviewed by the committee these terms  
of engagement do not include any contractual obligations under 
which the directors would be prevented from appointing a different 
audit ﬁrm were they to consider this to be in the best interests of  
the group the committee through management continues to 
maintain contact and dialogue with other major audit ﬁrms who  
are familiar with the group’s business for succession purposes  
as required this is reported to the committee in order to ensure a 
smooth transition from the current auditor should this be necessary
at the same meeting the ceo and the cfo presented to the  
audit committee their conclusions following the evaluation of the 
effectiveness of our disclosure controls and procedures required  
by item 15a of form 20f at 31 december 2010 based on their 
evaluation the ceo and the cfo concluded that as at that date we 
maintain an effective system of disclosure controls and procedures
there was no change in our internal control over ﬁnancial reporting 
that occurred during the period covered by this annual report that 
has materially affected or is reasonably likely to materially affect our 
internal control over ﬁnancial reporting
the audit committee is currently scheduled to meet six times  
in 2011 and will meet at such other times as may be required
the audit committee reviewed its terms of reference during 
january 2011 and recommended changes which were approved 
by the board in january 2011 the revised terms of reference are 
available on our website astrazenecacom
code of conduct
our code of conduct which is available on our website 
astrazenecacom applies to all directors ofﬁcers fulltime 
parttime contractor and temporary staff at all levels in every 
country where we operate it has been translated into over 40 
languages and every employee has a copy in hisher local 
language it is designed to provide clear direction as to how our 
commitment to honesty and integrity is to be translated into 
consistent actions across all areas of the business compliance 
with the code of conduct and with the standards detailed by the 
group in support of it is mandatory the same applies to the laws 
and regulations of the countries in which we work and do business 
as well as applicable national and international codes and we seek 
to operate to the highest of these standards the code of conduct 
is reviewed on a regular basis and updated where necessary to take 
account of changing legal and regulatory standards and obligations 
eg the introduction of the uk bribery act 2010
the code of conduct also includes information on how to report 
possible violations of the code of conduct through the appropriate 
channels including the azethics telephone lines and the global 
website azethicscom anyone who raises a possible breach in 
good faith will be supported by management and will not be subject 
to retaliation which would itself be considered a serious violation of 
the code of conduct we review all alleged compliance breaches 
and concerns and we investigate and report them to the audit 
committee as appropriate
during 2010 368 reports of alleged compliance breaches or other 
ethical concerns were made via the telephone lines the azethicscom 
website or the global compliance email or postal addresses 
described in the code of conduct the number of reports through 
equivalent channels in 2009 was 289 we believe that the increase 
in the number of reports via these channels is due to our ongoing 
focus on compliance matters and work to raise awareness of the 
code of conduct and supporting policies through focused 
communication and training
as with the code of conduct our global policies apply to all 
members of the group like the code of conduct the global 
policies provide clear and comprehensive guidance in plain 
language to all managers and employees as to their 
accountabilities in key ethical compliance and corporate 
responsibility risk areas
a critical element of the effectiveness of the code of conduct and 
global policies is to deliver clear training and education to employees 
on an ongoing basis
a group finance code of conduct complements the code of 
conduct it applies to the ceo the cfo the group’s principal 
accounting ofﬁcers including key finance staff in major overseas 
subsidiaries and all finance function employees and it reinforces 
the importance of the integrity of the group’s financial statements 
of the reliability of the accounting records on which they are based 
and of the robustness of the relevant controls and processes
astrazeneca annual report and form 20f information 2010 114 corporate governance report
corporate governance report remuneration committee
the principal role of the remuneration committee is to consider 
and set on behalf of the board the remuneration including pension 
rights and compensation payments of executive directors and other 
senior executives it also considers and sets the remuneration of the 
chairman in conjunction with the senior independent non
executive director and in the absence of the chairman no director 
is involved in deciding his or her own remuneration more information 
is set out in the directors’ remuneration report from page 119
nomination and governance committee
the nomination and governance committee’s role is to 
recommend to the board any new appointments of directors  
any decisions relating to the appointment of directors are made  
by the entire board based on the merits of the candidates and the 
relevance of their background and experience measured against 
objective criteria with care taken to ensure that appointees have 
enough time to devote to our business the committee also advises 
the board periodically on signiﬁcant developments in corporate 
governance and the company’s compliance with the uk corporate 
governance codes
during 2010 the members of the nomination and governance 
committee were louis schweitzer chairman of the committee 
jane henney michele hooper and john varley they are all 
nonexecutive directors the board considers them all to be 
independent louis schweitzer was considered by the board to  
be independent upon his appointment as chairman in accordance 
with the uk corporate governance codes the test of independence 
is not appropriate in relation to the chairman after his appointment 
the company secretary acts as secretary to the committee
the nomination and governance committee met six times in 2010 
the individual attendance record of its members is set out in the 
board and board committee meeting attendance in 2010 table  
on page 111 during the year it reviewed the knowledge experience 
and balance of the board overall and considered its likely future 
requirements given the strategic and business objectives of the 
company it recommended to the board the appointment of two 
new nonexecutive directors – bruce burlington and shriti vadera 
for both these appointments external board search ﬁrms were 
instructed to assist the committee in identifying potential 
candidates and recruiting the new board members in addition  
the committee received reports about corporate governance 
developments and their potential impact on the group in particular 
it reviewed the new uk corporate governance code published in 
may 2010 no signiﬁcant changes were required to our corporate 
governance framework as a result of the changes contained in the 
uk corporate governance code
the nomination and governance committee reviewed its terms  
of reference during 2010 and recommended minor changes which 
were approved by the board in january 2011 the revised terms  
of reference are available on our website astrazenecacom
science committee
the science committee’s core role continues to be to provide 
assurance to the board regarding the quality competitiveness and 
integrity of the group’s rd activities by way of meetings and 
dialogue with our rd leaders and other scientist employees visits 
to our rd sites throughout the world and review and assessment of 
  the approaches we adopt in respect of our chosen therapy areas 
  the scientiﬁc technology and rd capabilities deployed 
  the decision making processes for rd projects and 
programmes
  the quality of our scientists 
the science committee also reviews from time to time important 
bioethical issues that we face and assists in the formulation of and 
agrees on behalf of the board appropriate policies in relation to 
such issues it may also consider from time to time future trends in 
medical science and technology the committee does not review 
individual rd projects
during 2010 the members of the science committee all of whom 
have a knowledge of or an interest in life sciences were nancy 
rothwell chairman of the committee jane henney bruce 
burlington from his appointment as a nonexecutive director in 
august marcus wallenberg from 28 april 2010 and bo angelin 
until his retirement from the board on 29 april 2010 all non
executive directors the president global rd the executive 
vicepresident innovative medicines the senior vicepresident 
rd medimmune and the executive vicepresident global 
medicines development attend meetings of the committee the 
vicepresident strategy portfolio  performance rd also attends 
all meetings and acts as secretary to this committee
the science committee met twice in 2010 once by telephone and 
once at gaithersburg one of our us biologics sites it reviewed its 
terms of reference during 2010 and recommended minor changes 
which were approved by the board in july the revised terms of 
reference are available on our website astrazenecacom
us corporate governance requirements
our adss are traded on the nyse and accordingly we are subject 
to the reporting and other requirements of the sec applicable to 
foreign private issuers section 404 of the sarbanesoxley act 
requires companies to include in their annual report on form 20f 
ﬁled with the sec a report by management stating its responsibility 
for establishing internal control over ﬁnancial reporting and to 
assess annually the effectiveness of such internal control we have 
complied with those provisions of the sarbanesoxley act 
applicable to foreign private issuers the board continues to believe 
that the group has a sound corporate governance framework 
good processes for the accurate and timely reporting of its ﬁnancial 
position and results of operations and an effective and robust 
system of internal controls we have established a disclosure 
committee further details of which can be found in the disclosure 
committee section on page 116
the directors’ assessment of the effectiveness of the internal 
control over ﬁnancial reporting is set out in the directors’ 
responsibilities for and report on internal control over financial 
reporting section in the financial statements on page 136
we are required to disclose any signiﬁcant ways in which our 
corporate governance practices differ from those followed by  
us companies under the listing standards in addition we must 
comply fully with the provisions of the listing standards relating to 
the composition responsibilities and operation of audit committees 
these provisions incorporate the rules concerning audit committees 
implemented by the sec under the sarbanesoxley act we have 
reviewed the corporate governance practices required to be 
followed by us companies under the listing standards and our 
corporate governance practices are generally consistent with  
those standards
astrazeneca annual report and form 20f information 2010
corporate governance additional information financial statements overview business review
corporate governance report 115 business organisation
senior executive team
the ceo has established and chairs the set the set normally 
meets once a month to consider and decide major business issues 
or as otherwise required by business needs typically it also 
reviews in advance of submission to the board those matters  
that are to be submitted to the board for review and decision
in addition to the ceo the set’s members are the cfo the 
president global rd the executive vicepresident global 
commercial operations the general counsel the executive 
vicepresident human resources and corporate affairs and the 
executive vicepresident global operations and information 
services the company secretary acts as secretary to the set
portfolio investment board pib
the ceo has established and chairs the pib which is a seniorlevel 
crossfunctional governance body which seeks to maximise the 
value of our internal and external rd investments through robust 
transparent and wellinformed decisions that drive business 
performance and accountability 
speciﬁcally the pib has responsibility for 
  reviewing the rd portfolio – by conducting an objective and 
transparent review of rd performance product launch proﬁle 
and alignment with corporate strategy the review is also an 
important step in reconﬁrming the rd threeyear budget 
  approving the business plans of the innovative medicines units 
and the global medicines development demand forecast – by 
conﬁrming the allocation of resources across early and latestage 
elements of rd as well as assessing licensing and acquisition 
opportunities 
  approving latestage internal and external investment decisions
  monitoring environmental events that could have a major 
transformational or disruptive impact on our business
in addition to the ceo the pib’s members are the cfo the 
president global rd the executive vicepresident global 
commercial operations the executive vicepresident innovative 
medicines the senior vicepresident rd medimmune the 
executive vicepresident global medicines development and the 
vicepresident strategic partnering  business development the 
pib has a permanent secretary and typically meets at around the 
time of the monthly set meetings or as otherwise required by 
business needs
disclosure committee
our disclosure policy provides a framework for the handling and 
disclosure of inside information and other information of interest to 
shareholders and the investment community it also deﬁnes the role 
of the disclosure committee the members of the committee are 
the cfo who chairs the committee the president global rd the 
general counsel the vicepresident corporate affairs the 
vicepresident investor relations and the senior vicepresident 
group finance the deputy company secretary acts as secretary 
to this committee the committee meets regularly to assist and 
inform the decisions of the ceo concerning inside information and 
its disclosure periodically it reviews our disclosure controls and 
procedures and its own operation as part of work carried out to 
enable management and the board to assure themselves that 
appropriate processes are operating for our planned disclosures 
such as our quarterly results announcements and scheduled 
investor relations events
disclosure of information to auditors 
the directors who held ofﬁce at the date of approval of this annual 
report conﬁrm that so far as they are each aware there is no 
relevant audit information of which the company’s auditors are 
unaware and each director has taken all the steps that he or she 
ought to have taken as a director to make himself or herself aware 
of any relevant audit information and to establish that the 
company’s auditors are aware of that information
compliance and group internal audit gia
the role of the global compliance function is to manage and 
maintain the compliance programme infrastructure and to help 
embed a culture of ethics and integrity in the group global 
compliance works closely with gia with whom it provides joint 
assurance reporting to the audit committee the key priorities for 
our global compliance function for 20102011 are closely aligned 
with the group’s strategic priorities and include strengthening our 
efforts for oversight at all levels of our business including third 
parties antibribery and anticorruption efforts and data privacy 
during 2011 the global compliance function will continue to focus 
on ensuring the delivery of an aligned approach to compliance that 
addresses key risk areas across the business
during 2010 the global compliance function was restructured with 
a formal change to centralise the reporting of all globallydeployed 
compliance programme resources under the global compliance 
ofﬁcer who reports to the ceo a new management structure at 
the head of which is the global compliance leadership team now 
incorporates all operational elements of the business the remit  
of the team is to oversee and coordinate the implementation of  
an effective global compliance programme and evaluate its 
effectiveness it does this by assessing key compliance risks within 
and across the set functions working with gia to ensure co
ordination of compliance auditing and monitoring reviewing results 
addressing signiﬁcant policy violations and identifying trends
global compliance provides direct assurance to the audit committee 
on matters concerning compliance issues with a particular focus 
on compliance with antibribery and anticorruption legislation as 
well as ifpma efpia and phrma codes complementing this  
gia carries out a range of audits that include compliancerelated 
audits and reviews of the assurance activities of other group 
assurance functions the results from these activities are reported 
to the audit committee
gia is an independent appraisal function that derives its authority 
from the board through the audit committee its primary role is to 
provide reasonable and objective assurance to the directors 
regarding the adequacy and effectiveness of the group’s risk 
management and control framework and the internal controls over 
key business risks including ﬁnancial controls and compliance with 
laws regulations and policies
gia seeks to discharge the responsibilities set down in its charter  
by reviewing
  the processes for ensuring that key business risks are effectively 
managed
  the ﬁnancial and operational controls that help to ensure that the 
group’s assets are properly safeguarded from losses including 
fraud
  the controls that help to ensure the reliability and integrity of 
management information systems
  the processes for ensuring compliance with policies and 
procedures external legislation and regulation
astrazeneca annual report and form 20f information 2010 116 corporate governance report
corporate governance report in addition to fulﬁlling its primary remit of assurance to the audit 
committee gia acts as a source of constructive advice and best 
practice assisting senior management to improve governance 
control compliance and risk management
other matters
corporate governance statement under the uk disclosure 
and transparency rules
the disclosures that fulﬁl the requirements of a corporate 
governance statement under the disclosure and transparency 
rules can be found in this section and in other parts of this annual 
report as listed below each of which is incorporated into this 
section by reference
  signiﬁcant holders of the company’s shares contained in  
the shareholder information section from page 211
  articles contained in the corporate information section on  
page 216
  amendments to the company’s articles contained in the 
corporate information section on page 216
subsidiaries and principal activities
the company is the holding company for a group of subsidiaries 
whose principal activities are described in this annual report 
principal subsidiaries and their locations are given in the principal 
subsidiaries section in the financial statements on page 197 
branches and countries in which the group conducts 
business 
in accordance with the companies act 2006 we disclose below 
our subsidiary companies that have representative or scientiﬁc 
branchesofﬁces outside the uk
  astrazeneca uk limited albania algeria angola armenia 
azerbaijan belarus bosnia and herzegovina bulgaria chile 
costa rica croatia cuba georgia ghana scientiﬁc ofﬁce 
ireland jordan kazakhstan kenya scientiﬁc ofﬁce macedonia 
romania russia serbia and montenegro slovenia and ukraine
  astrazeneca ab egypt scientiﬁc ofﬁce latvia saudi arabia 
scientiﬁc ofﬁce and slovakia
  astrazeneca export and trading ab estonia lithuania romania 
and the united arab emirates
 astrazeneca singapore pte limited cambodia and vietnam
distributions to shareholders and dividends for 2010 
our distribution policy comprises both a regular cash dividend and 
a share repurchase component further details of which are set out 
in the financial review on page 87 and notes 21 and 20 to the 
financial statements on page 167  
the company’s dividends for 2010 of 255 1616 pence sek 
17 11 per ordinary share amount to in aggregate a total dividend 
payment to shareholders of 3617 million two of our employee 
share trusts astrazeneca share trust limited and astrazeneca 
quest limited waive their right to a dividend on the ordinary 
shares that they hold and instead receive a nominal dividend
a shareholders’ resolution was passed at the 2010 agm authorising 
the company to purchase its own shares pursuant to this 
resolution the company repurchased and subsequently cancelled 
53691507 ordinary shares with a nominal value of 025 each at 
an aggregate cost of 2604 million representing 38 of the total 
issued share capital of the company the company will seek a 
renewal of its current permission from shareholders to purchase its 
own shares at the agm on 28 april 2011
during our share repurchase programmes that operated between 
1999 and 2010 a total of 430 million ordinary shares were 
repurchased and subsequently cancelled at an average price  
of 2718 pence per share for a consideration including expenses  
of 20702 million
going concern accounting basis 
information on the business environment in which we operate 
including the factors underpinning the industry’s future growth 
prospects are included in the section describing our marketplace 
from page 10 details of our product portfolio our approach to 
product development and a summary of our development pipeline 
are included in the business review section from page 24 
additional information on our therapy areas is included in the 
therapy area review from page 50 the table showing our 
development pipeline can be found from page 206
the ﬁnancial position of the group our cash ﬂows liquidity position 
and borrowing facilities are described in the financial review from 
page 78 in addition notes 15 and 23 to the financial statements 
from pages 158 and 168 respectively include our objectives 
policies and processes for managing our capital our ﬁnancial risk 
management objectives details of our ﬁnancial instruments and 
hedging activities and our exposures to credit market and liquidity 
risk further details of our cash balances and borrowings are 
included in notes 13 and 14 to the financial statements on pages 
157 and 158 respectively
we have considerable ﬁnancial resources available at 31 
december 2010 we had 1525 billion in ﬁnancial resources cash 
balances of 111 billion and committed undrawn bank facilities of 
425 billion with only 01 billion of debt due within one year our 
revenues are largely derived from sales of products which are 
covered by patents and for which in the short term at least 
demand is relatively unaffected by changes in the global economy 
in addition we have a wide diversity of customers and suppliers 
across different geographic areas as a consequence the directors 
believe that we are well placed to continue to manage our business 
risks successfully
the directors have a reasonable expectation that we have adequate 
resources to continue in operational existence for the foreseeable 
future accordingly they continue to adopt the going concern basis 
in preparing this annual report and the financial statements
changes in share capital 
changes in the company’s ordinary share capital during 2010 
including details of the allotment of new shares under the 
company’s share plans are given in note 20 to the financial 
statements on page 167 
directors’ shareholdings 
the articles require each director to be the beneﬁcial owner of 
ordinary shares in the company with an aggregate nominal value 
of 125 which currently represents at least 500 shares such 
holding must be obtained within two months of the date of the 
director’s appointment at 31 december 2010 all of the directors 
complied with this requirement and full details of each director’s 
interests in shares of the company are set out in the directors’ 
interests in shares section on page 132 information about the 
shareholding expectations of the remuneration committee in 
respect of executive directors and set members and the board  
in respect of nonexecutive directors is also set out in the 
directors’ remuneration report on pages 121 and 128 respectively
corporate governance additional information financial statements overview business review
astrazeneca annual report and form 20f information 2010 corporate governance report 117 political donations 
neither the company nor its subsidiaries made any eu political 
donations or incurred any eu political expenditure in 2010 and they 
do not intend to do so in the future in respect of which shareholder 
authority is required or for which disclosure in this annual report  
is required under the companies act 2006 however to enable the 
company and its subsidiaries to continue to support interest groups 
or lobbying organisations concerned with the review of government 
policy or law reform without inadvertently breaching the companies 
act 2006 which deﬁnes political donations and other political 
expenditure in broad terms a resolution will be put to shareholders 
at the 2011 agm similar to that passed at the 2010 agm to 
authorise the company and its subsidiaries to 
 make donations to political parties 
 make  donations to political organisations other than political parties
 incur political expenditure up to an aggregate limit of 250000
in 2010 the group’s us legal entities made contributions amounting 
in aggregate to 1999150 2009 733687 to state political party 
committees and to campaign committees of various state 
candidates afﬁliated with the major parties in accordance with 
preestablished guidelines the increase from 2009 to 2010 reﬂects 
the fact that many us states held legislative and executive elections 
in 2010 resulting in more state candidate and state political party 
activity no corporate donations were made at the federal level and 
all contributions were made only where allowed by us federal and 
state law us citizens or individuals holding valid green cards 
exercised decision making over the contributions and the funds  
were not provided or reimbursed by any nonus legal entity such 
contributions do not constitute political donations or political 
expenditure for the purposes of the companies act 2006 and were 
made without any involvement of persons or entities outside the us 
signiﬁcant agreements
there are no signiﬁcant agreements to which the company is a 
party that take effect alter or terminate on a change of control of  
the company following a takeover bid there are no persons with 
whom we have contractual or other arrangements who are deemed 
by the directors to be essential to our business
use of ﬁnancial instruments 
notes 15 and 23 to the financial statements from pages 158  
and 168 respectively include further information on our use of 
ﬁnancial instruments
creditor payment policy 
it is not our policy formally to comply with the confederation of 
british industry’s code of practice on the prompt payment of 
suppliers it is however our policy to agree appropriate payment 
terms with all suppliers when agreeing to the terms of each 
transaction to ensure that those suppliers are made aware of the 
terms of payment and subject to their compliance to abide by  
the terms of payment the total amount of money owed by the 
company’s subsidiaries to trade creditors at the balance sheet  
date was equivalent to 62 days’ average purchases 2009 56 days  
a considerable part of the trade creditors’ balance continues to 
relate to the merck account in the us which has particularly long 
contractual payment terms by removing this balance and other 
items not directly related to trade purchases in the us a more 
accurate average of 57 days is obtained 2009 47 days
the company has no external trade creditors
annual general meeting 
the company’s agm will be held on 28 april 2011 the meeting 
place will be in london a notice of agm will be sent to all 
registered holders of ordinary shares and where requested to the 
beneﬁcial holders of shares
external auditor 
a resolution will be proposed at the agm on 28 april 2011 for the 
reappointment of kpmg audit plc as auditor of the company  
the external auditor has undertaken various nonaudit work for  
us during 2010 more information about this work and the audit  
and nonaudit fees that we have paid are set out in note 27 to  
the financial statements on page 196 the external auditor is not 
engaged by us to carry out any nonaudit work in respect of which 
it might in the future be required to express an audit opinion as 
explained more fully in the audit committee section from page 113 
the audit committee has established preapproval policies and 
procedures for audit and nonaudit work permitted to be carried out 
by the external auditor and has carefully monitored the objectivity 
and independence of the external auditor throughout 2010
bureau veritas 
bureau veritas has provided external assurance on corporate 
responsibility related information within this annual report and  
of the detailed content of the ‘responsibility’ section of our website 
bureau veritas has found the information provided within this 
annual report to be accurate and reliable based on the evidence 
provided and subject to the scope objectives and limitations 
deﬁned in the full assurance statement the full assurance 
statement which contains detailed scope methodology overall 
opinion and recommendations can be found on our website 
astrazenecacom web page content assured by bureau veritas  
is marked at the bottom of each page
bureau veritas is an independent professional services company 
that specialises in quality health safety social and environmental 
management with a long history of providing independent 
assurance services and an annual turnover in 2009 of €26 billion
directors’ report
the directors’ report which has been prepared in accordance  
with the requirements of the companies act 2006 comprises the 
following sections
 our strategy and performance
 business review
 corporate governance
 development pipeline
 shareholder information
 corporate information
and has been signed on behalf of the board
a c n kemp
company secretary 
27 january 2011
astrazeneca annual report and form 20f information 2010 118 corporate governance report
corporate governance report astrazeneca annual report and form 20f information 2010 directors’ remuneration report 119
in this introduction to the 2010 directors’ 
remuneration report i highlight a number of 
points to give context to the report that follows 
as we indicated in our 2009 annual report the remuneration 
committee’s main objectives during 2010 were to develop long
term compensation structures to support the strategic and ﬁnancial 
progress of the group to invest in the development of human 
capital in astrazeneca and to focus on stewardship and 
shareholder valuecreation over the long term in particular we 
stated our intention to reshape the group’s longterm incentive 
arrangements maintaining but not increasing the overall value  
of the package but recognising that astrazeneca operates in a 
uniquely longterm industry we sought thereby to strengthen the 
alignment between the time horizons over which our business 
investment decisions are taken and those to which part of our share 
incentive programmes relate an important and informative part of 
this process was extensive consultation with institutional investors 
we are grateful for their contribution to the development of the 
proposals our recommendations received strong support from 
shareholders at our agm in april 2010 and the new astrazeneca 
investment plan was approved 
meanwhile 2010 has been a year of considerable change for  
the senior leadership of astrazeneca remuneration policy and 
practices play a key role in supporting the implementation of our 
strategy to be a focused integrated innovationdriven global 
prescriptionbased biopharmaceutical business the committee 
has endeavoured to strike an appropriate balance between levels  
of remuneration that reﬂect the need to attract and retain top talent 
in a highly competitive global market and policies that are aligned 
with best practice through risk adjustment deferral clawback and 
reward for success the committee has applied careful oversight  
to internal moves and external hires to ensure that astrazeneca 
attracts and retains worldclass talent in its senior executive team 
particularly in 2010 in light of the changes in our rd organisation 
across its rd senior leadership 
there have also been changes to the membership of the 
committee itself during 2010 in april 2010 john buchanan retired 
from the committee when he stepped down from the board on 
behalf of the committee i would like to thank john for his immensely 
valuable contribution to the committee’s operation and decisions 
during his tenure as a member following john’s retirement rudy 
markham has joined the committee bringing with him a wealth of 
relevant experience including as a nonexecutive director of the 
financial reporting council rudy is also a member of the audit 
committee and we thereby maintain an important link between  
the work and deliberations of the two committees as can be seen 
from the committee members’ biographies on page 106 each  
of astrazeneca’s board committees including the science 
committee which is chaired by dame nancy rothwell is 
represented in the membership of the remuneration committee 
this is intentionally so and ensures that critical issues concerning 
performance productivity risk and reputation continue to be at the 
forefront of the committee’s considerations 
the changes that were made to executive remuneration during  
the year explained more fully below reﬂect a clear desire in the 
business which the committee fully supported to move towards  
a longerterm framework which will strengthen alignment with the 
inherently longterm nature of pharmaceutical drug development 
and thereby with the longterm interests of shareholders the 
revised longterm incentive lti structures have been designed 
cognisant of shareholder views and expectations to provide a clear 
focus for the business to outperform its industry peers over time  
to deliver operational efﬁciency and engender a strong sense of 
stewardship that will deliver longterm sustainable shareholder value
on behalf of the remuneration committee i commend this 
directors’ remuneration report to you
john varley 
chairman of the remuneration committee
directors’ remuneration report
corporate governance additional information financial statements overview business review
john varley 
nonexecutive director and 
chairman of the remuneration committee this directors’ remuneration report report has been prepared  
in accordance with the large and mediumsized companies and 
groups accounts and reports regulations 2008 regulations  
and meets the relevant requirements of the financial services 
authority’s listing rules as required by the regulations a 
resolution to approve this report will be proposed at the agm  
on 28 april 2011 
the following sections of this report up to and including the 
nonexecutive directors section on page 128 were not subject  
to audit by kpmg audit plc
remuneration committee membership and meetings
the members of the committee are john varley chairman rudy 
markham louis schweitzer and nancy rothwell rudy markham 
became a member of the committee on 29 april 2010 until that 
date upon which he retired from the board john buchanan was a 
member of the committee throughout 2010 all the members of 
the committee were independent nonexecutive directors – louis 
schweitzer was considered by the board to be independent upon 
his appointment as chairman the independence of the non
executive directors is discussed in more detail in the corporate 
governance report from page 109 the company secretary acts 
as the secretary to the committee
the committee met seven times in 2010 the individual attendance 
record of members of the committee is set out in the board and 
board committee meeting attendance in 2010 table on page 111
at the invitation of the committee except where their own 
remuneration was being discussed david brennan ceo lynn 
tetrault executive vicepresident human resources and 
corporate affairs simon appleby vicepresident performance  
and reward and viv gill and her successor katie jacksonturner 
vicepresident global compensation attended one or more 
committee meetings in 2010 and provided advice and services  
that materially assisted the committee
the committee retains carol arrowsmith of deloitte llp deloitte 
who provided independent advice on various matters it considered 
in 2010 during the year the committee reviewed the voluntary 
code of conduct in relation to executive remuneration consulting  
in the uk which is operated under the aegis of the remuneration 
consultants group in which deloitte participates during the year 
deloitte also provided taxation advice and other speciﬁc nonaudit 
services to the group the committee reviewed the potential for 
conﬂicts of interest and judged that there was none and that the 
independence of its adviser was not called into question
committee terms of reference and main work during  
the year
committee terms of reference
a copy of the committee’s terms of reference is available on our 
website astrazenecacom
the role of the committee is to develop and deploy remuneration 
policies and practices for senior management and for the group 
more broadly that support the implementation of our business 
strategy and which thereby help the organisation to create value  
for shareholders over time
the committee has responsibility for determining on behalf of the 
board the individual compensation paid to executive directors and 
set members it takes responsibility on behalf of the board for 
reviewing the design and operation of total compensation structures 
and practices across astrazeneca in this regard the committee’s 
approval is required in relation to among other things decisions 
regarding
  the eligibility structure awardgrant levels performance metrics 
and targets costs and ﬁnal vesting levels under lti plans for 
directors other set members and the company secretary
  annual bonus payments for executive directors other set 
members and senior executives below set level
  the pension entitlements of executive directors and other  
set members
  the chairman of the board’s remuneration which is approved by 
the other members of the committee and the senior independent 
nonexecutive director
  any single payment or award over 1 million
  shareholding guidelines for executive directors and other  
set members
  the contractual terms and conditions of and any potential or 
actual payments arising on termination to executive directors 
other set members and the company secretary so as to ensure 
that they are fair to the individual and the company that failure is 
not rewarded and that the duty to mitigate loss is fully recognised
the committee conducted a review of its terms of reference during 
2010 and agreed to recommend to the board a small number of 
changes principally to reﬂect provisions in the new uk corporate 
governance code these were approved by the board in january 
2011 and the revised terms of reference are available on our 
website astrazenecacom
main work during the year
the committee considered the following principal matters  
during 2010
  completion of the strategic review of the remuneration and 
incentive framework for executive directors and other set 
members this included signiﬁcant consultation with major 
shareholders and institutional investor organisations
  a review of the terms of senior executives’ remuneration 
packages on appointment promotion and termination including 
the remuneration packages on the appointment of a number of 
senior leaders in rd
  the assessment of group and individual performance against 
performance targets to determine the level of executive bonuses 
for 2009 and to set executive bonus performance targets for 2010
  the approval of the rules of the new astrazeneca investment plan 
azip prior to the azip being proposed to shareholders for 
approval at the 2010 agm and the approval of the rules of the 
new astrazeneca global restricted stock plan grsp which did 
not require shareholder approval 
  the approval of the introduction of a new cash ﬂow target for  
the astrazeneca performance share plan psp to be used in 
conjunction with the existing tsr performance condition
  the approval of awards made under the group’s main lti plans 
the psp the azip and the grsp to set members and other 
participants
astrazeneca annual report and form 20f information 2010 120 directors’ remuneration report
directors’ remuneration report   the approval of restricted share awards to a limited number  
of senior executives under the astrazeneca restricted share  
plan rsp
  a review of the use of clawback provisions by the company
  a review of the company’s governance arrangements for global 
compensation matters
  a benchmarking review of the committee’s activities and policies 
against institutional investor guidelines
  a review of the levels of share ownership of executive directors 
and other set members
  a review of the pension entitlements of executive directors and 
other set members
  a review of the impact on compensation policies and practices  
of the current economic environment including ensuring the 
appropriate degree of risk adjustment to aggregate and individual 
compensation decisions 
  a review of the voluntary code of conduct operated under the 
aegis of the remuneration consultants group in relation to 
executive remuneration consulting in the uk
  in conjunction with the senior independent nonexecutive director 
and not in the presence of the chairman of the board a review of 
the basic fee paid to the chairman of the board for his services
  the preparation review and approval in january 2011 of this 
report
key remuneration principles
the committee considers that the following objectives should 
continue to deﬁne its approach to the formation and execution  
of astrazeneca’s remuneration policy
  all aspects of executive remuneration should be designed to help 
astrazeneca create sustainable growth in shareholder value by 
the successful implementation of strategy and be developed in 
the context of shareholder views on best practice 
  reward structures and performance measures should support  
a strong performance culture enabling delivery of the business 
strategy where all employees have a clear understanding of the 
group’s objectives how their work will impact those objectives and 
how they will beneﬁt from delivering high levels of performance
  base pay and total compensation positioning against the market 
should be appropriate to attract and develop highcalibre talent 
and set remuneration should continue to be referenced to 
competitive levels of remuneration
following the 2010 agm the shareholding guidelines for executive 
directors and other set members were increased the 
shareholding requirement for the ceo was increased to 200 of 
base salary from 100 and the requirement for all other executive 
directors and set members was increased to 125 of base salary 
from 100
incentive programmes designed to deliver longterm 
shareholder value
the longterm share interests of executive directors and other set 
members are provided through two complementary share plans 
the psp and the azip 
under the psp  a relative tsr performance condition applies in 
respect of one half of any award made and the other half of the 
award is subject to a cash ﬂow performance measure that reﬂects 
operational management of the business in a way that is consistent 
with generating value for shareholders a cash ﬂow measure was 
introduced in 2010 because it encompasses all elements of 
operational and ﬁnancial performance represents a strong proxy 
through time for shareholder value creation and is a key measure for 
the group together the tsr and cash ﬂow performance conditions 
focus reward under the psp on outperformance of competitors
the azip  approved by shareholders in 2010 operates with an 
eightyear time horizon where reward is conditional on sustainable 
shareholder returns and ﬁnancial performance the azip creates 
the opportunity for annual awards to executive directors and other 
set members which must be held for a total of eight years and  
are subject to a fouryear performance requirement from the date  
of award
the greater weighting within the lti opportunity is given to awards 
under the psp  awards under the psp are positioned so that 
interests under this plan can deliver 75 of the overall expected value 
from longterm remuneration and the azip 25 the committee 
keeps under review the appropriateness of this weighting
the combination of awards under these two plans enhances the 
alignment between the time horizons over which our business 
investment decisions are taken and those to which our longterm 
remuneration vehicles relate
the astrazeneca share option plan sop expired during 2010 and 
grants of share options no longer form part of our lti arrangements
astrazeneca annual report and form 20f information 2010
corporate governance additional information financial statements overview business review
directors’ remuneration report 121 components of remuneration
during 2010 the remuneration components for all group employees 
including those of set members comprised ﬁxed and variable 
performancerelated elements summaries of these elements are 
included in the components of remuneration table below 
the way in which these elements of remuneration are combined 
and applied varies according to a range of factors including speciﬁc 
business needs and practices in different markets although in 
general the more senior the role within the business the greater 
the proportion of total remuneration is made up of variable 
performancerelated elements the committee seeks to ensure that 
the overall proportion of variable pay to which executive directors 
and other set members may become entitled forms a signiﬁcant 
part of their overall remuneration opportunity the committee’s 
objective for senior management is to ensure that such variable pay 
is linked to a range of measures designed to promote both 
individual and team behaviour and performance in a way that 
supports the success of astrazeneca and creates value for its 
shareholders such measures are designed to stretch and 
challenge the relevant individuals while at the same time giving them 
an opportunity to participate as shareholders in the creation  
of longterm economic value
the committee has continued to take into account the wider 
business environment and employment conditions across the 
group in particular with the exception of the cfo whose base 
salary had remained unchanged since he joined the group no base 
pay increases were awarded in respect of the 2010 calendar year  
to executive directors or other set members whose responsibilities 
were unchanged in addition award opportunities for set members 
under the group’s lti plan framework have been held at a 
consistent level since the adoption of the psp in 2005 
for 2011 the company will continue to benchmark against 
appropriate comparator companies and will assess whether or not 
and to what extent the overall opportunities for remuneration offered 
by the current structure of remuneration remain appropriate in the 
context of changes within the business and the external 
environment in which it operates taking note also of the guidance 
issued within the last 12 months from bodies representing 
institutional shareholders
components of remuneration
component of remuneration role within the remuneration framework summary of policy applies to
base salary ﬁxed base ﬁxed remuneration based on conditions in the relevant market and 
recognising the value of an individual’s sustained 
personal performance and contribution to the 
business taking account of the market rate for an 
individual’s skills and experience benchmarked 
against external comparators
all employees
pension arrangements 
ﬁxed
provision of retirement beneﬁts benchmarked against the relevant local  
employment market
all employees
beneﬁts ﬁxed provision of standard noncash employment beneﬁts 
such as healthcare insurances and for certain 
employees facilitated car purchase arrangements 
costeffective and compatible with relevant welfare 
arrangements and local market norms
all employees
shortterm bonus 
variable
an annual cash incentive opportunity determined  
by reference to group functional and individual 
performance measured over a single ﬁnancial year  
of the company and taking into account external 
expectations of performance
differs by market but the group performance 
measures ensure that all eligible employees receive  
an element of reward based on the group’s overall 
ﬁnancial performance
the functional goals are agreed by the committee at 
the start of the year and are derived from the business 
scorecard the key elements of which are set out in the 
business objectives and key performance indicators 
section from page 16 and are monitored as part of the 
quarterly business review qbr process
individual goals are based on annual objectives which 
are linked to functional goals
all eligible 
employees
deferred bonus plan 
variable
aligns set members’ interests with those of 
shareholders
set members must defer a proportion of their 
shortterm bonus onethird of pretax bonus for 
executive directors and onesixth for other set 
members into ordinary shares or adss for a 
threeyear period
set members
lti plans variable longterm equity incentive awards to provide individual 
executives and employees with total compensation 
opportunities that are competitive against local market 
practice for the achievement of operational excellence 
strong ﬁnancial performance and actions that are 
closely aligned with the interests of shareholders the 
primary lti plans in which set members participate 
are the psp and the azip
astrazeneca performance share plan set members and 
other senior 
executives
astrazeneca investment plan set members
share option plan ﬁnal awards made in 2009 senior management 
and set members
global restricted stock plan eligible employees 
globally
other share plans ‘all employee’ share participation arrangements 
including some that are taxapproved for example  
in the uk
examples include the share incentive plan and 
savingsrelated share option plan uk
1

eligible employees
shareholding guidelines aligning set members’ interests with those of 
shareholders
the ceo is expected to hold shares equivalent to 200 
of base salary and the cfo and other set members 
are expected to hold 125 of base salary in shares
set members
overall approach when assessing the overall value of a set member’s remuneration the committee considers both separately and in aggregate each 
component of the set member’s total remuneration
1
 further information on these plans is provided in note 24 to the financial statements from page 173
astrazeneca annual report and form 20f information 2010 122 directors’ remuneration report
directors’ remuneration report illustration of ﬁ xed and variable performancerelated 
remuneration
based on astrazeneca’s remuneration policy the components of 
remuneration – expected value charts below illustrate the potential 
weighting given to ﬁ xed and variable performancerelated elements 
of the remuneration package at executive director level variable 
performancerelated elements of the package are shown on an 
‘expected value’ basis and in the event that performance 
conditions are not met such elements would not deliver any value 
the ‘expected value’ approach considers the range of possible 
outcomes and the probability attached to each in order to provide 
a value that represents the average that would be delivered if the 
arrangements were operated over many years the ‘expected value’ 
for bonus payment is taken to be the target payout level
fixed remuneration
both executive directors’ terms and conditions are ukbased apart 
from david brennan’s pension and health insurance arrangements 
which are described below and are benchmarked against external 
uk comparators
base salary
the base salary for executive directors and other set members 
is determined by the committee salary decisions reﬂ ect the 
experience and performance of the individuals to whom they apply 
taking account of market competitiveness and the level of increases 
applicable to employees in the wider group there was no increase 
to the base salary of the ceo in either 2009 or 2010 the cfo’s 
base salary was increased in 2010 for the ﬁ rst time since he joined 
the group in 2007  effective from 2011 the committee awarded 
david brennan and simon lowth base salary increases of 25 
illustrated in the executive directors’ base salaries in 2010 and 2011 
table below this is in line with the adjustments being made to the 
base salaries of other employees within the group in 2011
executive directors’ base salaries in 2010 and 2011
executive director
annual salary 
in 2010
£
annual salary 
in 2011
£
increase

david brennan 972900 997223 25
simon lowth 620000 635500 25
components of remuneration – expected value
chief executive ofﬁcer  
fixed
 base salary  
variable
 bonus  
 psp  
 azip  
 
22
14
42
22
chief financial ofﬁcer  
fixed
 base salary  
variable
 bonus  
 psp  
 azip  
 
29
11
34
26
fixed elements variable elements
base salary linked to shortterm performance linked to longterm performance
pension bonus astrazeneca investment plan
beneﬁ ts such as healthcare deferred bonus sharebased performance share plan
remuneration and terms of employment for executive directors and other set members
components of executive director and set remuneration
astrazeneca annual report and form 20f information 2010
corporate governance additional information financial statements overview business review
directors’ remuneration report 123 pension arrangements
the table in the deﬁned beneﬁt arrangements section on page 130 
gives details of the changes in the value of the executive directors’ 
accrued pensions during 2010
ceo’s pension arrangements
david brennan is a member of the astrazeneca us deﬁned beneﬁt 
pension plan us dbp by virtue of his membership of pension 
plans applicable to legacy astra merck employees on his 
appointment to the board the rules of the us dbp were amended 
so as to remove bonus payments from the calculation of his 
pensionable pay beneﬁts for members of the us dbp are delivered 
on a taxqualiﬁed basis with accrued beneﬁts that exceed speciﬁc 
limits under the plan’s formula and the us tax code being delivered 
through a supplementary nonqualiﬁed plan
the normal pension age under the us dbp is 65 however on 
leaving or retiring from employment david brennan is eligible to take 
a pension or lump sum equivalent based on accrued service and ﬁnal 
pensionable pay ie without actuarial reduction due to his satisfaction 
of a condition in the pension plan relating to the combined age and 
service exceeding 85 years as previously disclosed
david brennan’s participation in the us dbp is subject to a service 
cap at 35 years’ service which will be attained in january 2011 
after which no further service accrual can be earned
members and in the event of death surviving spousesdependants 
can elect in relation to those beneﬁts delivered on a taxqualiﬁed 
basis under the us dbp  to take pensions in lump sum form based 
on actuarial valuation members or spousesdependants may not 
make such an election in relation to any supplementary non
qualiﬁed beneﬁts which must be taken in lump sum form
in addition david brennan as a us citizen is a contributing 
member of the us 401k savings plan
1
 he also contributes to 
an associated nonqualiﬁed plan as described in the deﬁned 
contribution arrangements section on page 131
in the event of a us participant becoming incapacitated permanent 
health insurance cover will provide continuation of a proportion of 
salary subject to the satisfaction of certain medical criteria in the 
event of the death of a participant prior to retirement a life 
assurance policy will provide surviving spousesdependants with a 
lump sum equivalent to one times salary such salary being capped 
at the maximum pensionable salary under the plan
cfo’s pension arrangements
simon lowth is eligible to join the astrazeneca group self invested 
personal pension uk deﬁned contribution plan uk dcp at a 
company contribution rate of 24 of annual base salary or 
alternatively to take the company contribution as a cash allowance 
for the option years 1 july 2009 to 30 june 2010 and 1 july 2010 
to 30 june 2011 he elected to take the cash allowance as detailed 
in the deﬁned contribution arrangements section on page 131
in the event of a senior employee in the uk dcp including one who 
has taken an alternative cash allowance becoming incapacitated 
permanent health insurance cover provides continuation of a 
proportion of salary subject to the satisfaction of certain medical 
criteria in the event of death prior to retirement dependants are 
entitled to a pension andor lump sum secured from a multiple of  
10 times salary
1
  the 401k savings plan is a qualiﬁed plan to which eligible employees may make salarydeferral 
contributions on a posttax andor pretax basis employers may also make matching or 
nonelective contributions to the plan there is a supplementary nonqualiﬁed plan in place for 
all eligible employees whose earnings exceed speciﬁc limits under the us tax code
beneﬁts
consistent with the majority of employers certain beneﬁts are made 
available to executive directors and other set members via local 
beneﬁts programmes offered by astrazeneca beneﬁts under these 
programmes typically include healthcare insurances and facilitated 
car purchase arrangements
variable performancerelated remuneration
executive directors and other set members are eligible to 
participate in different elements of variable performancerelated pay 
which are described below the decision as to whether or not in 
any given year they receive any or all of their elements of variable 
pay is determined by the committee which in making such a 
determination will typically have regard to the performance of the 
individual and the group and will consider the elements of variable 
pay applicable to senior employees in other comparable 
organisations
shortterm bonus
performance criteria
executive directors and other set members are eligible for a 
shortterm bonus the basis for the payment of any shortterm 
bonus is determined by reference to a range of factors linked to the 
underlying performance of astrazeneca’s business the 
performance of the functional area for which the individual is 
responsible and the performance of the individual in his or her role
structure and assessment of performance 
as set out in the 2009 directors’ remuneration report the 
performance criteria for the determination of annual bonuses for 
executive directors and other set members have been aligned 
more closely with the current objectives and measures that are 
used by the business this approach continued to apply for 2010 
and will do so for 2011 for 2011 the bonus ranges are unchanged 
from 2010 the bonus deferral requirements described in more 
detail below applied for 2010 and will be reviewed during 2011 
executive directors’ and other set members’ bonuses for 2010 
were based on performance criteria linked to the following targets
  60 by reference to eps cash ﬂow targets and the objectives in 
each of the strategic priority areas identiﬁed by the board for the 
business the key elements of which are set out in the business 
objectives and key performance indicators section from page 16 
and which are monitored as part of the quarterly business review 
qbr process against targets set by the committee at the 
beginning of the year and which among other things take into 
account external expectations of performance
  40 by reference to individual measures and initiatives which link 
to the business objectives relevant to the individual’s functional 
accountability or in the case of the ceo the average of these 
individual outcomes
these measures reinforce astrazeneca’s emphasis on individual 
and business accountability the key measures referred to above 
are clearly set out in the business objectives and key performance 
indicators section from page 16 whereby group and functional 
objectives and measures are managed in a robust and consistent 
way and assessed by the set as part of the qbr process the 
outcome of this process is rigorously scrutinised by the committee
bonus ranges for 2011
for 2011 the bonus ranges for each executive director are shown 
below and are the same as 2010
executive director
bonus range for 2011

david brennan 0180
simon lowth 0150
astrazeneca annual report and form 20f information 2010 124 directors’ remuneration report
directors’ remuneration report bonus outcomes for 2010
in assessing bonuses for 2010 the committee took into account 
the strong eps excluding restructuring and synergy costs and 
cash ﬂow performance which in both cases signiﬁcantly exceeded 
target together with overall business and ﬁnancial outcomes and 
relevant functional performance against clear measures and 
initiatives set at the beginning of the bonus year the key elements 
of these strategic priorities and business objectives are set out in 
the business objectives and key performance indicators section 
from page 16 in relation to the following categories which the 
committee believes are consistent with delivering shareholder value
 pipeline
 deliver the business
 business shape
 people and values
when assessing the performance of the business in these 
categories the committee noted that during 2010
  in relation to the pipeline and lifecycle management vimovo was 
approved in the us and the eu brilique was approved in the eu 
kombiglyze™ xr onglyza™metformin combination was 
approved in the us additional indications were approved for 
other products decisions were made in december to discontinue 
development of motavizumab and certriad 
  although we suffered some pipeline disappointments the new 
rd leadership team has made signiﬁcant progress in 2010 with 
the creation of a single rd organisation 
  the commercial organisation has continued to drive strong sales 
performance in the face of an increasingly challenging 
environment
  our operations function has continued to deliver on efﬁciency 
  the business broadly maintained a good level of employee 
engagement despite a period of signiﬁcant organisational change 
  the business response to the corporate integrity agreement has 
been rigorous with signiﬁcant work undertaken to continue to 
promote a culture of responsibility and accountability across the 
organisation
having assessed the company’s performance against all the 
measures set out above the committee is satisﬁed that the bonus 
payments that have been earned against stretching performance 
targets are fully justiﬁed
the bonus outcomes for the executive directors for 2010 are 
shown in the table below
bonus outcomes for 2010 
shortterm bonus delivered as a combination 
of cash and shares as shown in the directors’ 
emoluments in 2010 section from page 129
1
executive director £  of salary
david brennan
1583025 16271
simon lowth
918245 14810
1
 bonuses for executive directors are not pensionable
bonus share deferral requirements
consistent with best practice and to encourage a longterm view 
and align set members’ interests with those of shareholders the 
committee has put in place a requirement that certain proportions 
of any shortterm bonus payment as speciﬁed below be deferred 
and invested into ordinary shares or adss together shares 
broadly these are acquired on the open market at the prevailing 
market price and held for a period of three years from the date of 
acquisition before being delivered to individual executive directors 
and other set members this arrangement is one of the ways in 
which over time executive directors and other set members will 
be able to build up a signiﬁcant shareholding in the company  
the proportion currently deferred into shares is onethird of the 
pretax bonus for executive directors and onesixth for other set 
members the committee will review whether the proportion of 
bonus to be deferred should be increased in 2011 on leaving 
participants would normally have to wait for the shares to be 
released at the end of the threeyear period for executive directors 
and other set members who cease employment for reasons other 
than that of good leaver for example those who are dismissed  
the deferred bonus award will lapse unless the committee decides 
otherwise before the cessation of employment
astrazeneca performance share plan
the psp was approved by shareholders at the agm in 2005 and 
provides for the grant of performance share awards psp share 
awards over shares the operation of the psp was reviewed in 
2010 and a new cash ﬂow performance condition described in 
more detail below was introduced
basis of participation
participation in the psp is highly selective and usually includes only 
senior employees on the basis of their performance 
generally psp share awards can be granted at any time although 
in practice they are awarded annually but not during a close or 
prohibited period of the company in 2010 the main grant of psp 
share awards was made on 26 march for set members on 7 
may with other share awards approved by the committee in 
relation to for example new appointments promotions or 
assignments being granted on 27 august and 5 november the 
value of shares subject to a psp share award is determined by 
reference to the market price of shares over the threeday period 
immediately preceding the date of grant
details of psp share awards granted to executive directors are 
shown in the performance share plan table on page 133
individual limit
in respect of any ﬁnancial year of the company the maximum 
market value of shares that may in theory be put under a psp 
share award in respect of an employee is 500 of that employee’s 
base salary
the actual individual limits that apply under the psp  subject to this 
maximum are set by the committee from time to time
performance conditions
other than in exceptional circumstances which are prescribed in 
the psp rules the vesting of psp share awards is contingent on 
the satisfaction of speciﬁed performance targets and continued 
employment with the group in addition to the satisfaction of these 
performance targets psp share awards will generally not vest until 
the third anniversary of the date of grant if a participant ceases to 
be in relevant employment the award will be time prorated and 
vest at the end of the performance period
performance period and vesting dates
in the case of all psp share awards granted to date the 
performance target relates to the threeyear period commencing  
on 1 january of the year of grant therefore for psp share awards 
made in 2010 the performance period runs from 1 january 2010  
to 31 december 2012 the vesting date is the third anniversary of 
the date of grant
performance targets
  50 of the award is based on relative tsr against a selected 
peer group of global pharmaceutical companies of which
 –  25 of the maximum award vests for performance at the 
median of the peer group 
 –  75 of the maximum award vests for upper quartile 
performance and 
astrazeneca annual report and form 20f information 2010
corporate governance additional information financial statements overview business review
directors’ remuneration report 125  –  100 of the maximum award may vest at the committee’s 
discretion if the company’s tsr performance is substantially 
better than that of the upper quartile of the comparator group 
for psp share awards to vest at this level the company would 
need to have sustained a level of performance signiﬁcantly in 
excess of upper quartile over a period of years and the 
committee would need to be satisﬁed that this was warranted
  50 of the award vests subject to the achievement of the free 
cash ﬂow target which operates as a cumulative cash ﬂow target 
over a threeyear performance period
the peer group for the tsr measure is abbott laboratories inc 
bms eli lilly  company glaxosmithkline plc johnson  
johnson merck novartis ag pﬁzer inc f hoffmannla roche 
ltd and sanoﬁaventis 
tsr measures share price growth and dividends reinvested in 
respect of a notional number of shares from the beginning of the 
relevant performance period to the end of it and ranks the 
companies in the selected comparator group by reference to their 
tsr achieved over that period the rank which the company’s tsr 
achieves over the performance period will determine how many 
shares will vest under the relevant psp share award payouts 
against performance in relation to tsr for psp share awards are 
expressed as a percentage of the maximum psp share award 
currently payable shown within a range of 0 to 100 this 
presentation is shown in the table below
the tsr vesting schedule is as follows
tsr ranking of the company vesting 
below median
 0
median
25
between median and upper quartile
pro rata
upper quartile
75
signiﬁcantly above upper quartile
up to 100
to alleviate any shortterm volatility the return index is averaged in 
the tsr calculations for each company over the three months prior 
to the start and end of the relevant performance period
in addition to the tsr performance target being met for each psp 
share award as set out above the committee also has to satisfy 
itself that achievement of the tsr performance target is a genuine 
reﬂection of the group’s underlying ﬁnancial performance and has 
the discretion to prevent psp share awards from vesting or only to 
allow them to partially vest where this appears to the committee to 
be warranted
the cash ﬂow target will operate as a cumulative performance 
target over the same threeyear performance period as the tsr 
measure the measure for the cash ﬂow target is net cash ﬂow 
before distributions and the level of vesting will be based on a 
sliding scale between a threshold cash ﬂow target of 16 billion and 
an upper target of 23 billion twenty ﬁve percent of the relevant 
portion of the award will vest for achievement of the threshold 
target rising on a sliding scale to full vesting for achievement  
of the upper target as shown in the table below net cash ﬂow  
is considered to be the most appropriate measure of cash ﬂow 
performance because it relates to the residual cash available to 
ﬁnance additional investment in speciﬁc business needs debt 
repayments and our distribution policy
the cash ﬂow measure encompasses a number of important 
elements of operational and ﬁnancial performance and helps to 
align executives’ rewards with shareholder value creation the level 
of vesting of this element is based on a sliding scale against a target 
that is intended to represent a signiﬁcant challenge for the business 
it is intended that the committee should have the discretion to 
adjust but on an exceptional basis only the free cash ﬂow target 
during the performance period for material factors that might 
otherwise distort the performance measure in either direction  
this is so that performance can be assessed against targets that 
have been set on a consistent basis for example adjustments  
may be required to reﬂect exchange rate movements signiﬁcant 
acquisitions or divestments and major legal and taxation 
settlements any major adjustments to the calculation are disclosed 
to shareholders there is no retesting of performance 
adjusted cumulative cash ﬂow vesting 
less than 16 billion
0
16 billion
25
between 16 billion and 23 billion
pro rata
23 billion and above
100
for psp share awards granted up to and including 2007  the 
companies included in the peer group for the tsr measure were 
abbott laboratories inc bms eli lilly  company glaxosmithkline 
plc johnson  johnson merck novartis ag pﬁzer inc f 
hoffmannla roche ltd sanoﬁaventis scheringplough 
corporation and wyeth inc as a result of corporate actions in the 
pharmaceutical sector during 2009 scheringplough corporation 
and wyeth inc have been removed from the peer group as a result 
the committee has decided the following in relation to outstanding 
unvested awards
  psp share awards in 2007 the tsr performance for schering
plough corporation and wyeth inc was adjusted from a date a 
week before the announcement of the relevant corporate action 
to the end of the relevant performance period so as to track the 
tsr of the acquiring companies merck in the case of schering
plough and pﬁzer inc in the case of wyeth inc
  psp share awards from 2008 onwards scheringplough 
corporation and wyeth inc were removed from the peer group 
thus reducing the size of the peer group to 10 companies 
excluding astrazeneca for these awards astrazeneca’s tsr 
will be compared with the tsr for the 10 companies remaining  
in the peer group in respect of the relevant performance period
performance under the psp in 2010
the tsr graphs on page 131 show for each psp share award 
how the company’s tsr performance has compared with the tsr 
for the companies in the comparator group from the ﬁrst day of the 
relevant performance period to 31 december 2010 and how the 
company ranks against those other peer companies on this basis 
at the end of 2010 the company is on track to meet the cash ﬂow 
target we will continue to report on the performance of each psp 
share award against the relevant performance target during the 
relevant vesting period
astrazeneca investment plan 
the azip was approved by shareholders at the 2010 agm and 
provides for the grant of share awards azip share awards over 
shares
basis of participation
participation in the azip is highly selective and usually includes only 
senior employees on the basis of their performance 
the ﬁrst grant of azip share awards was made on 7 may shortly 
after the approval of the azip by shareholders in future years azip 
share awards are likely to be made annually at the same time as the 
annual awards under other longterm incentive plans the value of 
shares subject to an azip share award is determined by reference 
to the market price of shares over the threeday period immediately 
preceding the date of grant
details of azip share awards granted to executive directors are 
shown in the astrazeneca investment plan table on page 133
astrazeneca annual report and form 20f information 2010 126 directors’ remuneration report
directors’ remuneration report performance period and holding period
it is intended to operate the azip with a fouryear performance 
period performance period and a fouryear holding period holding 
period under the rules of the azip  the performance period is the 
period of up to eight years and not less than three years from 
1 january of the ﬁnancial year in which the azip share award is 
made the holding period starts at the end of the performance 
period and ends eight years from the ﬁrst day of the ﬁnancial year  
in which the azip share award was made
performance requirement for awards under the azip
the azip is aligned to astrazeneca’s targeted product development 
cycle reﬂecting the longterm investment horizons that are a feature 
of the industry the performance requirement attached to awards 
under the azip is a combination of dividend and dividend cover 
tests assessed over a period of up to four ﬁnancial years beginning 
at the start of the ﬁrst ﬁnancial year of the company in which the 
award is granted 
at the end of the performance period the extent to which the 
performance hurdle has been met will determine the number of 
shares in respect of which the azip share award will vest at the 
end of the holding period 
the committee’s intention in its choice of proposed performance 
tests has been to establish a performance requirement that 
motivates ﬁnancial business performance that will generate returns 
for shareholders on a sustainable basis over an extended time 
period the performance hurdle for share awards made in 2010 is 
that the annual dividend per share paid to holders of ordinary 
shares is increased from 230 over the four year performance 
period 230 being the full year dividend for 2009 and that 
dividend cover based on reported earnings before restructuring 
costs does not fall below 15 times
performance under the azip in 2010
the full year dividend was 255 for 2010 and dividend cover did 
not fall below the 15 times threshold we will continue to report on 
the performance of each azip share award against the relevant 
performance hurdle during the relevant performance period
cessation of employment during the performance period
if a participant ceases to be in employment and also if relevant an 
executive director with the group during the performance period 
hisher azip share award will generally lapse unless his cessation 
is because of death illhealth injury disability redundancy 
retirement with the agreement of hisher employing company or 
because of a sale or transfer out of the group each a good leaver 
reason in these circumstances the maximum number of shares 
comprised in an azip share award will unless the committee 
determines otherwise be prorated to reﬂect the proportion of the 
period of employment between grant and cessation relative to the 
fouryear performance period in circumstances where the good 
leaver reason is death illhealth injury or disability being 
compassionate circumstances the performance hurdle will be 
assessed and the azip share award may vest following cessation 
of employment unless the committee determines otherwise on 
cessation of employment for any other good leaver reason the 
prorated azip share award will remain subject to the performance 
hurdle which will be assessed at the end of the performance 
period unless the committee determines that special 
circumstances apply and the azip share award may then vest on 
the later of i the end of the performance period or ii 24 months 
after cessation of employment unless the committee determines 
otherwise 
cessation of employment during the holding period
if a participant ceases to be in employment and also if relevant an 
executive director with the group during the holding period his
her azip share award will generally lapse unless hisher cessation 
is because of a good leaver reason in circumstances where the 
good leaver reason is death illhealth injury or disability being 
compassionate circumstances the azip share award will vest in 
respect of all the shares subject to the azip share award as 
calculated at the end of the performance period as soon as 
possible following cessation of employment on cessation of 
employment for any other good leaver reason the azip share 
award will vest in respect of all the shares subject to the azip share 
award as calculated at the end of the performance period on the 
earlier of i the end of the period of 24 months from the date of 
cessation of employment and ii the end of the holding period the 
committee does have discretion to determine otherwise if it believes 
the circumstances justify this
individual limit
in respect of any ﬁnancial year of the company the maximum 
market value of shares that may in theory be put under an azip 
share award in respect of an employee is 500 of that employee’s 
base salary the actual individual limits that apply under the azip  
subject to this maximum are set by the committee from time to 
time share awards made to executive directors in 2010 did not 
exceed 65 of base salary
clawback of shares
the committee can claw back some or all of the shares that are  
the subject of a participant’s azip share award at any time during 
the performance period and the holding period if in the opinion  
of the committee acting fairly and reasonably any of the 
underlying performance of the company the occurrence of an 
event that causes or is very likely to cause reputational damage  
to the company or serious misconduct by the participant warrants 
the clawback if this discretion is exercised the azip share award 
will be deemed to have been granted over the reduced number  
of shares
astrazeneca share option plan
the sop was approved by shareholders at the agm in 2000 and 
provided for the grant of share option awards option awards over 
shares the sop was approved for a period of 10 years and 
expired in may the company did not seek reapproval of the sop 
by shareholders
details of outstanding option awards granted to executive directors 
are shown in the share option plan table on page 134
the committee imposed performance conditions in respect of  
the exercise of such option awards by set members including  
the executive directors which in the view of the committee were 
considered appropriately stretching in order for option awards  
to vest the eps of the group must increase at least in line with the  
uk retail prices index plus 5 per annum on average over a three 
year period the base ﬁgure being the eps for the ﬁnancial year 
preceding the date of grant with no retesting in addition since  
the review of executive remuneration in 2004 the committee has 
included a condition that if an event occurs which causes material 
reputational damage to the company such that it is not appropriate 
for the option awards to vest and become exercisable the 
committee can make a determination to reﬂect this
other incentive plans
global restricted stock plan 
the grsp was introduced in 2010 and provides for the grant of 
restricted stock awards stock awards over shares as the grsp 
is operated for below setlevel employees only no set member 
participates in the grsp  during 2010 two restricted stock plans 
the az rsu plan and the medimmune rsu plan described below 
applicable to below setlevel employees were discontinued and 
replaced by the grsp on broadly similar terms to the existing 
plans with no increase in overall award levels for the purposes of 
simplifying the administration 
astrazeneca annual report and form 20f information 2010
corporate governance additional information financial statements overview business review
directors’ remuneration report 127 in 2010 stock awards were made under the grsp on 26 march 
with other stock awards approved by the committee in relation to 
for example new appointments promotions or assignments being 
granted on 27 august stock awards granted under the grsp do 
not involve the issue and allotment of new ordinary shares but 
rather rely on the market purchase of shares that have already been 
issued there is no increase in the overall quantum of awards 
applicable to target employees through the introduction of the grsp  
restricted stock unit plans 
the astrazeneca pharmaceuticals lp restricted stock unit award 
plan az rsu plan was introduced in 2007 and provided for the 
grant of restricted stock unit awards to selected employees 
predominantly in the us the medimmune inc 2008 restricted 
stock unit award plan medimmune rsu plan was introduced in 
2008 to make restricted stock unit awards to employees of 
medimmune the az rsu plan and the medimmune rsu plan 
were used in conjunction with the sop to provide a mix of restricted 
stock units and share options restricted stock unit awards typically 
vest on the third anniversary of the date of grant and are contingent 
on continued employment with astrazeneca the az rsu plan and 
the medimmune rsu plan were replaced in 2010 by the grsp  
restricted share plan
the astrazeneca restricted share plan rsp was introduced  
in 2008 and provides for the grant of restricted share awards  
rs awards to key employees excluding executive directors  
rs awards are made on an ad hoc basis with variable vesting dates 
and may not operate in respect of newly issued ordinary shares  
or ordinary shares transferred from treasury the rsp was used  
a number of times in 2010 to make rs awards to a limited number 
of key senior executives in speciﬁc situations considered by the 
committee the committee has responsibility for agreeing any  
rs awards under the rsp and for setting the policy for the way  
in which the rsp should operate 
other plans
in addition to the plans described above the company operates a 
share incentive plan and a savingsrelated share option plan in 
the uk both of which are hm revenue  customs approved plans 
certain executive directors and other set members are eligible to 
participate in these plans more detailed descriptions of which can 
be found in note 24 to the financial statements from page 173 
dilution under lti plans
only outstanding awards under the sop are settled using newly 
issued ordinary shares none of the other lti plans currently 
operated by the company have a dilutive effect because they  
do not involve the issue and allotment of new ordinary shares  
but rather rely on the market purchase of shares that have already 
been issued 
service contracts
details of the service contracts for each of the executive directors 
including their notice periods are set out opposite either the 
company or the executive director may terminate the service 
contract on 12 months’ notice it is the committee’s intention that  
in the event of early termination of an executive director’s 
employment any compensation payable under hisher service 
contract should not exceed the salary and beneﬁts that would have 
been received had the contractual notice period been worked and 
this may be further reduced in line with the executive director’s duty 
to mitigate losses none of the executive directors has any provision 
in their service contracts giving them a right to liquidated damages 
or an automatic entitlement to bonus for the duration of their notice 
period compensation for any bonus entitlement will be assessed 
initially as ‘on target’ but subject to adjustment by the committee  
to take account of the particular circumstances of the termination
policy on external appointments and retention of fees
subject to the speciﬁc approval of the board in each case 
executive directors and other set members may accept external 
appointments as nonexecutive directors of other companies and 
retain any related fees paid to them provided always that such 
external appointments are not considered by the board to prevent 
or reduce the ability of the executive to perform his or her role within 
the group to the required standard such appointments are seen as 
a way in which executives can gain a broader business experience 
and in turn beneﬁt the company
during 2010 with the approval of the board simon lowth was 
appointed as a nonexecutive director of standard chartered plc 
in respect of such position he retained the fees paid to him for his 
services which during the period of his directorship from 1 may to 
31 december amounted to £66667 
nonexecutive directors
none of the nonexecutive directors has a service contract but  
all have letters of appointment the effective dates of appointment 
for each of the nonexecutive directors are set out in the table 
opposite in accordance with the company’s articles following their 
appointment directors must retire at each agm and may present 
themselves for election or reelection none of the nonexecutive 
directors has any provision in their letter of appointment giving them 
a right to compensation payable upon early termination of their 
appointment they are not eligible for performancerelated bonuses 
or the grant of share awards or options no pension contributions 
are made on their behalf
during 2010 the annual fees paid to nonexecutive directors were 
reviewed the basic board fee the fee of the chairman and of the 
senior independent nonexecutive director and the fee for 
membership of the audit committee were increased these 
increases took into account the need for the company to continue 
to attract skilled and experienced nonexecutive directors having 
regard to comparable fees at other uk public listed companies of a 
similar size and to recognise the signiﬁcant responsibility and time 
commitment expected of nonexecutive directors the increases 
ensure that the company is well positioned when seeking to recruit 
new nonexecutive directors as part of routine refreshment of the 
board and succession planning the annual aggregate 
remuneration of the nonexecutive directors remains well below the 
limit in the articles approved by shareholders at the 2010 agm 
none of the nonexecutive directors has participated or will 
participate in any decision made in relation to the determination of 
their own fees
the chairman’s annual fee is £500000 and the annual fees 
applicable to other nonexecutive directors are set out opposite  
in addition to the mandatory shareholding requirement imposed  
on all directors under the articles described in the directors’ section 
on page 216 in december 2008 the board agreed that each 
nonexecutive director should also be encouraged to build up over 
time a shareholding in the company with a value approximately 
equivalent to the basic annual fee for a nonexecutive director 
£75000 or in the case of the chairman approximately equivalent 
to his annual fee £500000
audit
the directors’ emoluments in 2010 disclosed in the directors’ 
emoluments in 2010 section from page 129 and the details of the 
directors’ interests in ordinary shares disclosed in the directors’ 
interests in shares section from page 132 have been audited by 
kpmg audit plc
astrazeneca annual report and form 20f information 2010 128 directors’ remuneration report
directors’ remuneration report details of executive directors’ service contracts at 31 december 2010
executive director
1
date of service 
contract
unexpired term at 
31 december 2010
notice 
period
david brennan 1 january 2006 12 months 12 months
simon lowth 5 november 2007 12 months 12 months
1
  neither of the executive directors has any provision in their service contracts giving them a right to liquidated damages or an automatic entitlement to a bonus for the duration of their notice period
nonexecutive directors’ terms and conditions
nonexecutive director
1 2
effective date of appointment
bruce burlington 1 august 2010
jeanphilippe courtois 18 february 2008
jane henney 24 september 2001
michele hooper 1 july 2003
rudy markham 12 september 2008
nancy rothwell 27 april 2006
louis schweitzer 11 march 2004
john varley 26 july 2006
marcus wallenberg 6 april 1999
1
 none of the letters of appointment applicable to nonexecutive directors confers upon them any right to compensation payable on early termination of their appointment
2
 pursuant to the articles the continued appointment of each nonexecutive director is subject to their election or reelection at each agm
nonexecutive directors’ fees
£
basic fee 75000
senior independent nonexecutive director 30000
membership of the audit committee 20000
membership of the remuneration committee 15000
chairman of the audit committee or the remuneration committee
1
20000
membership of the science committee 10000
chairman of the science committee
1
7000
1
 this fee is in addition to the fee for membership of the relevant committee
directors’ emoluments in 2010
the aggregate remuneration excluding pension contributions and the value of shares under option and shares subject to share awards 
paid to or accrued for all directors for services in all capacities during the year ended 31 december 2010 was £5880000 9088000  
the remuneration of individual directors is set out below in pounds sterling and us dollars all salaries fees bonuses and other beneﬁts  
for directors are established in pounds sterling
directors’ remuneration – pounds sterling 
name
salary 
and fees
 £000
bonus 
cash
 £000
bonus 
shares
1
 
£000
taxable 
beneﬁts
£000
other 
payments 
and 
allowances 
£000
total 
2010 
£000
total
2009
£000
total
2008 
£000
louis schweitzer 456 – – – – 456 325 303
david brennan 973
2
1055 528 24 464
3
3044 3186 2506
simon lowth 620 612 306 8 96
4
1642 1426 1304
bruce burlington
5
33 – – – – 33 ––
jeanphilippe courtois 80 – – – – 80 75 58
jane henney 90 – – – – 90 85 76
michele hooper 120 – – – – 120 100 90
rudy markham 90 – – – – 90 75 23
nancy rothwell 96 – – – – 96 92 80
john varley 99 – – – – 99 95 83
marcus wallenberg 71 – – – – 71 60 53
former directors
bo angelin
6
23 – – – – 23 70 63
john buchanan
6
36 – – – – 36 110 96
others – – – –– – 479 1181
total 2787 1667 834 32 560 5880 6178 5916
astrazeneca annual report and form 20f information 2010
corporate governance additional information financial statements overview business review
directors’ remuneration report 129 directors’ remuneration – us dollars
name
salary 
and fees
 000
bonus 
cash
 000
bonus 
shares
1
 
000
taxable 
beneﬁts
000
other 
payments 
and 
allowances 
000
total 
2010 
000
total
2009
000
total
2008 
000
louis schweitzer 705–––– 705 504 567
david brennan 1504
2
1631 816 37 717
3
4705 4937 4692
simon lowth 958 946 473 12 148
4
2537 2209 2442
bruce burlington
5
51 –––– 51 ––
jeanphilippe courtois 124–––– 124 116 109
jane henney 139–––– 139 132 142
michele hooper 185–––– 185 155 169
rudy markham 139–––– 139 116 43
nancy rothwell 148–––– 148 143 150
john varley 153–––– 153 147 155
marcus wallenberg 110–––– 110 93 99
former directors
bo angelin
6
36 –––– 36 108 118
john buchanan
6
56 –––– 56 170 180
others –––––– 743 2211
total 4308 2577 1289 49 865 9088 9573 11077
1
  these ﬁgures represent that portion of the 2010 bonuses required to be deferred into shares to be held for a threeyear period as explained in the bonus share deferral requirements section 
on page 125
2
  this ﬁgure includes a sum of 356000£230000 in respect of member contributions to the astrazeneca executive deferred compensation plan and 401k plan which were paid into the plan 
by means of a salary sacriﬁce see the deﬁned contribution arrangements section on page 131 for further details
3
 relates to relocation allowances a car allowance and cash payments in respect of dividends accrued on vesting of lti share plan awards 
4
  relates to remaining cash following selection of beneﬁts within astrazeneca’s uk ﬂexible beneﬁts programme and a cash payment in respect of dividends accrued on vesting of an lti share 
plan award
5
  partyear only as appointed as a director with effect from 1 august 2010
6
  partyear only as ceased to be a director on 29 april 2010
in the tables on this page and on the previous page salaries have been converted between pounds sterling and us dollars at the average 
exchange rate for the year in question these rates were
gbpusd
2010 0647
2009 0645
2008 0534
details of share options exercised by directors and the aggregate of gains realised on the exercise of options and of awards under the  
lti plans in the year are given in the director’s interests in shares section from page 132
no director has a family relationship with any other director
pensions
deﬁned beneﬁt arrangements
pension is payable to david brennan in us dollars for ease of understanding the table below has been presented in both pounds sterling 
and us dollars using the exchange rates for 2010 set out above 
david brennan
£000 000
deﬁned beneﬁt arrangements
1 accrued pension at 1 january 2010 918 1419
2 increase in accrued pension during year as a result of inﬂation ––
3 adjustment to accrued pension as a result of salary increase relative to inﬂation 69 107
4 increase in accrued pension as a result of additional service 19 29
5 accrued pension at 31 december 2010 1006 1555
6 employee contributions during 2010 ––
7 transfer value of accrued pension at 31 december 2009 12890 19922
8 transfer value of accrued pension at 31 december 2010
1
14711 22738
9 change in transfer value during the period less employee contributions 1822 2816
10 age at 31 december 2010 57
4
⁄12 57
4
⁄12
11 pensionable service years at 31 december 2010 35 35
1
  for david brennan transfer values are calculated to be consistent with the value of the lump sum distribution equivalent to his deferred accrued pension annuity the value shown at 
31 december 2010 has been adjusted to reﬂect a change in the lump sum factor at 31 december 2009
astrazeneca annual report and form 20f information 2010 130 directors’ remuneration report
directors’ remuneration report deﬁned contribution arrangements
in addition to the deﬁned beneﬁt arrangements set out in the deﬁned beneﬁt arrangements section above david brennan participates in  
a 401k plan he also participates in astrazeneca’s executive deferred compensation plan edcp which is operated as a supplemental 
nonqualiﬁed plan in respect of us employees should annual contributions exceed the limit applicable to contributions under the qualiﬁed 
401k plan during 2010 total employer matching contributions of 91000 £59000 2009 98000 £64000 were made to his 401k  
plan and edcp  member contributions of 356000 £230000 were paid through salary sacriﬁce into the plans as described in the pension 
arrangements section on page 124 simon lowth chose to receive a cash allowance in lieu of pension which during 2010 amounted to 
£149000 230000 2009 £132000 205000
transactions with directors
there were no material recorded transactions between the company and the directors during 2010 or 2009
total shareholder return
the regulations require the inclusion of a graph showing tsr over a ﬁveyear period in respect of a holding of the company’s shares plotted 
against tsr in respect of a hypothetical holding of shares of a similar kind and number by reference to which a broad equity market index  
is calculated the company is a member of the ftse 100 index and consequently for the purposes of this graph which is set out below  
we have selected the ftse 100 index as the appropriate index this graph is rebased to 100 at the start of the rolling ﬁveyear period we 
have also included a ‘pharma peers average’ excluding scheringplough corporation and wyeth inc which reﬂects the tsr of the same 
comparator group used for the graphs below
the psp requires that the tsr in respect of a holding of the company’s shares over the relevant performance period be compared with the 
tsr of a peer group of pharmaceutical companies as described in the performance targets section from page 125 the graphs below show 
how the company’s tsr performance has compared with the tsr for the relevant companies in the comparator group from the ﬁrst day in 
the relevant threeyear performance period in respect of each share award to 31 december 2010 and how the company ranks against those 
other companies on this basis
to alleviate any shortterm volatility the return index is averaged in the tsr calculations for each company over the three months prior to the start 
of the relevant performance period as stipulated in the psp and for the purposes of the graphs below over the last three months of 2010 
tsr – astrazeneca compared with peer group 
1 january 2008 to 31 december 2010 
60
50
40
30
20
10
0
10
20
30
az gsk bms jj nov al sa pfi lly rch mrk
tsr – astrazeneca compared with peer group 
1 january 2009 to 31 december 2010 
50
40
30
20
10
0
10
20
bms mrk az sa gsk lly pfi jj nov al rch
tsr – astrazeneca compared with peer group 
1 january 2010 to 31 december 2010 
20
15
10
5
0
5
10
15
az bms mrk nov lly jj gsk pfi sa al rch
tsr over a ﬁveyear period
160
140
120
100
80
january
2006
january
2007
january
2008
january
2009
january
2010
january
2011
 astrazeneca  
 pharmaceutical peers average  
 ftse 100 
astrazeneca annual report and form 20f information 2010
corporate governance additional information financial statements overview business review
directors’ remuneration report 131 directors’ interests in shares
beneﬁcial interests
the table below shows any change in the interests of the directors including the interests of their connected persons as such term is 
deﬁned in the financial services and markets act 2000 in ordinary shares from 1 january 2010 to 31 december 2010 or on the date of 
resignation of such director if earlier all such interests were beneﬁcial except as otherwise stated however interests in ordinary shares  
or adss that are the subject of psp share awards azip share awards andor the deferred bonus plan discussed in this report are not 
included in the table below but are shown in the performance share plan astrazeneca investment plan and deferred bonus plan tables on 
page 133 none of the directors has a beneﬁcial interest in the shares of any of the company’s subsidiaries between 31 december 2010 
and 27 january 2011 there was no change in the interests in ordinary shares shown in the table below 
name
beneﬁcial interest in ordinary
shares at 1 january 2010 or 
if later appointment date
change to beneﬁcial 
interest
beneﬁcial interest in ordinary
shares at 31 december 2010 
or if earlier resignation date
louis schweitzer 5356 11259 16615
david brennan 128375 58607 186982
simon lowth 850 8496 9346
bo angelin
1
787 – 787
john buchanan
1
2500 – 2500
bruce burlington
2
553 – 553
jeanphilippe courtois 2635 – 2635
jane henney 787 527 1314
michele hooper 1700 700 2400
rudy markham 1420 520 1940
nancy rothwell 787 527 1314
john varley 500 794 1294
marcus wallenberg
3
67264 3618 63646
1
 partyear only as ceased to be a director on 29 april 2010
2
 partyear only as appointed as a director on 1 august 2010
3
 ceased to have an interest in 3618 shares held by a family member who ceased to be a connected person during 2010
unitised stock plans
david brennan in common with other participating executives in the us has interests in the following plans which were awarded to  
him prior to him becoming ceo the astrazeneca executive deferral plan the astrazeneca executive deferred compensation plan and the 
astrazeneca savings and security plan these are unitised stock plans into which the value of certain previous share incentive awards has 
been deferred and are not incentive awards in their own right participants hold units in each plan which represent a longterm equity 
interest in the company a unit comprises part cash and part adss the overall unit value can be determined daily by taking the market value 
of the underlying adss and adding the cash position the adss held within these units carry both voting and dividend rights david brennan 
is deemed to have a notional beneﬁcial interest in these adss calculated by reference to the fund value and the closing price of adss 
therefore the number of adss in which a notional beneﬁcial interest arises can vary daily as a consequence of stock price movements
unitised stock plan
adss held at 
1 january 2010
net adss acquired
during 2010
adss held 
at 31 december 2010
astrazeneca executive deferral plan 35906 1835 37741
astrazeneca savings and security plan 8103 420 8523
no director or senior executive beneﬁcially owns or has options over 1 or more of the issued share capital of the company nor do they 
have different voting rights from other shareholders
astrazeneca annual report and form 20f information 2010 132 directors’ remuneration report
directors’ remuneration report performance share plan
the interests of directors at 31 december 2010 in shares that are the subject of share awards under the psp are not included in the table on 
the previous page but are shown below
number of 
shares
award price
pence
price on 
vesting 
date pence grant date
1
vesting date
1
performance period
1
david brennan
2007 share award 107051 2744 300307 300310 010107 – 311209
2008 share award 161546 1882 280308 280311 010108 – 311210
2009 share award 133347 2280 270309 270312 010109 – 311211
total at 1 january 2010 401944
partial vesting of 2007 share award
2
83499
35
2980
partial lapse of 2007 share award 23552
2010 share award 127520 2861 070510 070513 010110 – 311212
total at 31 december 2010 422413
simon lowth
2007 share award 15554 2210 161107 161110 010107 – 311209
2008 share award 58448 1882 280308 280311 010108 – 311210
2009 share award 54276 2280 270309 270312 010109 – 311211
total at 1 january 2010 128278
partial vesting of 2007 share award
2
12132
45
3016
partial lapse of 2007 share award 3422
2010 share award 52009 2861 070510 070513 010110 – 311212
total at 31 december 2010 164733
1
 uk date convention applies
2
   share awards granted in 2007 vested in 2010 at 78 based on the outcome of the performance conditions and targets which are set out in the astrazeneca performance share plan section from page 125
3
 following certain mandatory tax deductions david brennan became beneﬁcially interested in a net number of 49264 ordinary shares
4
 following certain mandatory tax deductions simon lowth became beneﬁcially interested in a net number of 5944 ordinary shares
5
  cash payments equivalent to dividends accruing over the vesting period are made at the date of vesting and are included in ‘other payments and allowances’ in the directors’ remuneration tables 
from page 129
astrazeneca investment plan
the interests of directors at 31 december 2010 in shares that are the subject of share awards under the azip are not included in the table 
on the previous page but are shown below
number of 
shares
award price
pence grant date
1
vesting date
1
performance period
1
david brennan
2010 share award 21253 2861 070510 010118 010110 – 311213
total at 31 december 2010 21253
simon lowth
2010 share award 8668 2861 070510 010118 010110 – 311213
total at 31 december 2010 8668
1
  uk date convention applies
deferred bonus plan
as described in the bonus share deferral requirements section on page 125 there is a requirement for executive directors and set members 
to defer a certain proportion of any shortterm bonus payments into ordinary shares or adss the proportion of bonus currently deferred into 
ordinary shares or adss is onethird of the pretax bonus for executive directors and onesixth for all other set members the interests of 
directors at 31 december 2010 in ordinary shares or adss that are the subject of awards under these arrangements are not included in the 
table on the previous page but are shown below
number of 
shares
award price
pence
price on 
vesting 
date pence grant date
1
vesting date
1
david brennan
2007 award 12014 2911 230207 230210
2008 award 16810 1999 250208 250211
2009 award 17992 2400 250209 250212
total at 1 january 2010 46816
vesting of 2007 award 12014
23
2810
2010 award 20718 28175 250210 250213
total at 31 december 2010 55520
simon lowth
2008 award 1340 1999 250208 250211
2009 award 9775 2400 250209 250212
total at 1 january 2010 11115
2010 award 9760 28175 250210 250213
total at 31 december 2010 20875
1
 uk date convention applies
2
 following certain mandatory tax deductions david brennan became beneﬁcially interested in a net number of 7088 ordinary shares
3
  cash payments equivalent to dividends accruing over the vesting period are made at the date of vesting and are included in ‘other payments and allowances’ in the directors’ remuneration tables 
from page 129
astrazeneca annual report and form 20f information 2010
corporate governance additional information financial statements overview business review
directors’ remuneration report 133 share option plans 
the interests of directors who served during 2010 in options to subscribe for ordinary shares granted under the sop and where 
indicated the zeneca plan are included in the following table none of the directors in the table below hold options under the astrazeneca 
savingsrelated share option plan there were no grants of options made under any of the plans in 2010
number of 
ordinary 
shares under 
option
1
exercise 
price per 
ordinary 
share
2
market price 
on date 
of exercise
first day 
exercisable
34
last day
exercisable
34
david brennan at 1 january 2010 – options over ordinary shares 592975 2375p 240309 260319
– market price above option price ordinary shares 505244 2271p 190509 260319
– market price at or below option price ordinary shares 87731 2975p 240309 230316
at 31 december 2010 – options over ordinary shares 592975 2375p 240309 260319
– market price above option price ordinary shares 505244 2271p 190509 260319
– market price at or below option price ordinary shares 87731 2975p 240309 230316
at 1 january 2010 – options over adss 355246 4522 160303 230315
– market price above option price adss 210255 4291 260307 230315
– market price at or below option price adss 144991 4858 290304 270312
exercised 2 march 2010 32727
5
4400 4435 160303 260319
at 31 december 2010 – options over adss 322519 4535 290304 230315
– market price above option price adss 110987 4035 240308 230315
– market price at or below option price adss 211532 4797 290304 250314
simon lowth at 1 january 2010 153934 2090p 161110 260319
– market price above option price 153934 2090p 161110 260319
– market price at or below option price – na na na
exercised 17 november 2010 18665 2210p 3048p 161110 151117
at 31 december 2010 135269 2074p 280311 260319
– market price above option price 135269 2074p 280311 260319
– market price at or below option price – na na na
1
  vesting is subject to satisfying the relevant performance conditions set out in each of the relevant share option plans further information on the performance conditions applicable to the sop 
is set out in the astrazeneca share option plan section on page 127 as a save as you earn scheme the astrazeneca savingsrelated share option plan is not subject to any performance 
conditions awards granted under the zeneca plan are no longer subject to any performance conditions
2
 exercise prices are weighted averages
3
 first and last exercise dates of groups of options within which period there may be shorter exercise periods
4
 uk date convention applies
5
 option granted under the zeneca plan
gains by directors on exercise of share options
the aggregate gains made by directors on the exercise of share options during the year and the two previous years are set out below
year
gains made by directors 
on the exercise of share options

gains made by the 
highest paid director

2010 26018240 1145445
2009 ––
2008 176496 –
during 2010 the market price of ordinary shares or adss was as follows
stock exchange
ordinary shareads market price 
at 31 december 2010
range of the ordinary share
ads market price during 2010
london 2922p 2732p to 3385p
stockholm 3093 sek 3093 sek to 3822 sek
new york 4619 4091 to 5350
on behalf of the board
a c n kemp 
company secretary 
27 january 2011
astrazeneca annual report and form 20f information 2010 134 directors’ remuneration report
directors’ remuneration report how are the 
ﬁnancial statements 
structured
136  preparation of the financial statements and  
directors’ responsibilities
136  directors’ responsibilities for and report on  
internal control over financial reporting
137  auditor’s reports on the financial statements  
and on internal control over financial reporting 
sarbanesoxley act section 404
137  independent auditor’s report to the members  
of astrazeneca plc
138  consolidated statement of comprehensive  
income for the year ended 31 december
139  consolidated statement of financial position  
at 31 december
140  consolidated statement of changes in equity  
for the year ended 31 december
141  consolidated statement of cash flows for the  
year ended 31 december
142 group accounting policies 
147 notes to the group financial statements 
 147 1 product revenue information
 148 2 operating proﬁt
 148 3 finance income and expense
 149 4 taxation
 151 5 earnings per 025 ordinary share
 151 6 segment information
 153 7 property plant and equipment
 154 8 goodwill
 155 9 intangible assets
 157 10 other investments
 157 11 inventories
 157 12 trade and other receivables
 157 13 cash and cash equivalents
 158 14 interestbearing loans and borrowings
 158 15 financial instruments
 161  16 trade and other payables
 161 17 provisions for liabilities and charges
 162 18 postretirement beneﬁts
 166 19 capital and reserves
 167 20 share capital of the company
 167 21 dividends to shareholders
 167  22 acquisitions of business operations
 168 23  financial risk management objectives  
and policies
 173 24  employee costs and share option plans  
for employees
 178 25 commitments and contingent liabilities 
 196 26 leases
 196 27 statutory and other information 
197 principal subsidiaries
 198  independent auditor’s report to the members  
of astrazeneca plc
199 company balance sheet at 31 december
200 company accounting policies 
201 notes to the company financial statements
 201 1 fixed asset investments
 201 2 nontrade creditors
 201 3 loans
 202 4 reserves
 202 5  reconciliation of movement in shareholders’ funds
 202 6 share capital
 203 7 litigation and environmental liabilities
 203 8 statutory and other information
204 group financial record
astrazeneca annual report and form 20f information 2010 financial statements 135 astrazeneca annual report and form 20f information 2010 136 financial statements
the directors assessed the effectiveness of astrazeneca’s internal 
control over financial reporting as at 31 december 2010 based on 
the criteria set forth by the committee of sponsoring organizations 
of the treadway commission in internal controlintegrated 
framework based on this assessment the directors believe that 
as at 31 december 2010 the internal control over financial 
reporting is effective based on those criteria
kpmg audit plc an independent registered public accounting firm 
has audited the effectiveness of internal control over financial 
reporting as at 31 december 2010 and as explained on page 137 
has issued an unqualified report thereon
the directors are responsible for establishing and maintaining 
adequate internal control over financial reporting astrazeneca’s 
internal control over financial reporting is designed to provide 
reasonable assurance over the reliability of financial reporting and 
the preparation of consolidated financial statements in accordance 
with generally accepted accounting principles
due to its inherent limitations internal control over financial 
reporting may not prevent or detect misstatements projections of 
any evaluation of effectiveness to future periods are subject to the 
risks that controls may become inadequate because of changes in 
conditions or that the degree of compliance with the policies or 
procedures may deteriorate
directors’ responsibilities for and report on 
internal control over financial reporting
the directors are responsible for keeping adequate accounting 
records that are sufficient to show and explain the parent company’s 
transactions and disclose with reasonable accuracy at any time the 
financial position of the parent company and enable them to ensure 
that its financial statements comply with the companies act 2006 
they have general responsibility for taking such steps as are 
reasonably open to them to safeguard the assets of the group 
and to prevent and detect fraud and other irregularities
under applicable law and regulations the directors are also 
responsible for preparing a directors’ report directors’ remuneration 
report and corporate governance statement that complies with 
that law and those regulations
the directors are responsible for the maintenance and integrity of 
the corporate and financial information included on the company’s 
website legislation in the uk governing the preparation and 
dissemination of financial statements may differ from legislation in 
other jurisdictions
directors’ responsibility statement pursuant to dtr 4
the directors confirm that to the best of our knowledge
  the financial statements prepared in accordance with the 
applicable set of accounting standards give a true and fair view 
of the assets liabilities financial position and profit or loss of the 
company and the undertakings included in the consolidation 
taken as a whole
  the directors’ report includes a fair review of the development 
and performance of the business and the position of the issuer 
and the undertakings included in the consolidation taken as 
a whole together with a description of the principal risks and 
uncertainties that they face
on behalf of the board of directors on 27 january 2011
david r brennan
director
the directors are responsible for preparing the annual report and 
form 20f information and the group and parent company financial 
statements in accordance with applicable law and regulations
company law requires the directors to prepare group and parent 
company financial statements for each financial year under that 
law they are required to prepare the group financial statements in 
accordance with ifrss as adopted by the eu and applicable law and 
have elected to prepare the parent company financial statements 
in accordance with uk accounting standards and applicable law 
uk generally accepted accounting practice
under company law the directors must not approve the financial 
statements unless they are satisfied that they give a true and fair 
view of the state of affairs of the group and parent company and 
of their profit or loss for that period in preparing each of the group 
and parent company financial statements the directors are 
required to
  select suitable accounting policies and then apply 
them consistently
  make judgements and estimates that are reasonable 
and prudent
  for the group financial statements state whether they have 
been prepared in accordance with ifrss as adopted by the eu
  for the parent company financial statements state whether 
applicable uk accounting standards have been followed 
subject to any material departures disclosed and explained in 
the parent company financial statements
  prepare the financial statements on the going concern basis 
unless it is inappropriate to presume that the group and the 
parent company will continue in business
preparation of the financial statements and directors’ responsibilities
financial statements astrazeneca annual report and form 20f information 2010 financial statements 137
corporate governance additional information financial statements overview business review
as at 31 december 2010 sarbanesoxley act section 404 
the directors’ statement on internal control over financial reporting 
is set out on page 136
kpmg audit plc has also reported separately on the company 
financial statements of astrazeneca plc and on the information 
in the directors’ remuneration report that is described as having 
been audited this audit report is set out on page 198
the report set out below is provided in compliance with international 
standards on auditing uk and ireland kpmg audit plc has also 
issued reports in accordance with auditing standards of the public 
company accounting oversight board in the us which will be 
included in the annual report on form 20f to be filed with the 
us securities and exchange commission those reports are 
unqualified and include opinions on the group financial statements 
and on the effectiveness of internal control over financial reporting 
auditor’s reports on the financial statements and on internal control over 
financial reporting sarbanesoxley act section 404
in our opinion the group financial statements comply with ifrss 
as issued by the iasb
opinion on other matter prescribed by the companies  
act 2006
in our opinion the information given in the directors’ report for the 
financial year for which the group financial statements are prepared 
is consistent with the group financial statements
matters on which we are required to report by exception
we have nothing to report in respect of the following
under the companies act 2006 we are required to report to you if 
in our opinion
  certain disclosures of directors’ remuneration specified by 
law are not made
  we have not received all the information and explanations 
we require for our audit
under the listing rules we are required to review
  the directors’ statement set out on page 142 in relation 
to going concern
  the part of the corporate governance statement relating 
to the company’s compliance with the nine provisions of 
the june 2008 combined code specified for our review
  certain elements of the report to shareholders by the board 
on directors’ remuneration
other matters
we have reported separately on the parent company financial 
statements of astrazeneca plc for the year ended 31 december 
2010 and on the information in the directors’ remuneration report 
that is described as having been audited
jimmy daboo 
senior statutory auditor
for and on behalf of kpmg audit plc statutory auditor
chartered accountants
15 canada square london e14 5gl
27 january 2011
we have audited the group financial statements of astrazeneca plc 
for the year ended 31 december 2010 set out on pages 138 to 197 
the financial reporting framework that has been applied in their 
preparation is applicable law and international financial reporting 
standards ifrss as adopted by the eu
this report is made solely to the company’s members as a body in 
accordance with chapter 3 of part 16 of the companies act 2006 
and in respect of the separate opinion in relation to ifrss as issued 
by the international accounting standards board iasb on terms 
agreed with the company our audit work has been undertaken 
so that we might state to the company’s members those matters 
we are required to state to them in an auditor’s report and in respect 
of the separate opinion in relation to ifrss as issued by the iasb 
those matters that we have agreed to state to them in our 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 and the company’s members as a body for our 
audit work for this report or for the opinions we have formed
respective responsibilities of directors and auditors
as explained more fully in the directors’ responsibilities statement 
set out on page 136 the directors are responsible for the preparation 
of the group financial statements and for being satisfied that they 
give a true and fair view our responsibility is to audit and express 
an opinion on the group financial statements in accordance with 
applicable law and international standards on auditing uk and 
ireland those standards require us to comply with the auditing 
practices board’s apb’s ethical standards for auditors
scope of the audit of the financial statements
a description of the scope of an audit of financial statements is 
provided on the apb’s website frcorgukapbscopeprivatecfm
opinion on financial statements
in our opinion the group financial statements
  give a true and fair view of the state of the group’s affairs as at 
31 december 2010 and of its profit for the year then ended
  have been properly prepared in accordance with ifrss as 
adopted by the eu
  have been prepared in accordance with the requirements of the 
companies act 2006 and article 4 of the ias regulation
separate opinion in relation to ifrss as issued by the iasb
as explained in the group accounting policies section to the group 
financial statements set out on pages 142 to 146 the group in 
addition to complying with its legal obligation to apply ifrss as 
adopted by the european union has also applied ifrss as issued 
by the iasb
independent auditor’s report to the members of astrazeneca plc astrazeneca annual report and form 20f information 2010 138 financial statements
financial statements
notes
2010
m
2009 
m
2008 
m
revenue 1 33269 32804 31601
cost of sales 6389 5775 6598
gross profit 26880 27029 25003
distribution costs 335 298 291
research and development 2 5318 4409 5179
selling general and administrative costs 2 10445 11332 10913
other operating income and expense 2 712 553 524
operating profit 2 11494 11543 9144
finance income 3 516 462 854
finance expense 3 1033 1198 1317
profit before tax 10977 10807 8681
taxation 4 2896 3263 2551
profit for the period 8081 7544 6130
other comprehensive income
foreign exchange arising on consolidation 26 388 1336
foreign exchange differences on borrowings forming net investment hedges 101 68 291
amortisation of loss on cash flow hedge 1 11
net available for sale gains taken to equity 4 22
actuarial loss for the period 18 46 569 1232
income tax relating to components of other comprehensive income 4 61 192 368
other comprehensive income for the period net of tax 25 54 1906
total comprehensive income for the period 8106 7490 4224
profit attributable to
owners of the parent 8053 7521 6101
noncontrolling interests 28 23 29
total comprehensive income attributable to
owners of the parent 8058 7467 4176
noncontrolling interests 48 23 48
basic earnings per 025 ordinary share 5 560 519 420
diluted earnings per 025 ordinary share 5 557 519 420
weighted average number of ordinary shares in issue millions 5 1438 1448 1453
diluted weighted average number of ordinary shares in issue millions 5 1446 1450 1453
dividends declared and paid in the period 21 3494 3026 2767
all activities were in respect of continuing operations
m means millions of us dollars
consolidated statement of comprehensive income
for the year ended 31 december astrazeneca annual report and form 20f information 2010 financial statements 139
corporate governance additional information financial statements overview business review
notes
2010
m
2009
m
2008
m
assets
noncurrent assets
property plant and equipment 7 6957 7307 7043
goodwill 8 9871 9889 9874
intangible assets 9 12158 12226 12323
derivative financial instruments 15 324 262 449
other investments 10 211 184 156
deferred tax assets 4 1475 1292 1236
30996 31160 31081
current assets
inventories 11 1682 1750 1636
trade and other receivables 12 7847 7709 7261
other investments 10 1482 1484 105
derivative financial instruments 15 9 24 –
income tax receivable 3043 2875 2581
cash and cash equivalents 13 11068 9918 4286
25131 23760 15869
total assets 56127 54920 46950
liabilities
current liabilities
interestbearing loans and borrowings 14 125 1926 993
trade and other payables 16 8661 8687 7178
derivative financial instruments 15 8 90 95
provisions 17 1095 1209 600
income tax payable 6898 5728 4549
16787 17640 13415
noncurrent liabilities
interestbearing loans and borrowings 14 9097 9137 10855
derivative financial instruments 15 – – 71
deferred tax liabilities 4 3145 3247 3126
retirement benefit obligations 18 2472 3354 2732
provisions 17 843 477 542
other payables 16 373 244 149
15930 16459 17475
total liabilities 32717 34099 30890
net assets 23410 20821 16060
equity
capital and reserves attributable to equity holders of the company
share capital 20 352 363 362
share premium account 2672 2180 2046
capital redemption reserve 107 94 94
merger reserve 433 433 433
other reserves 19 1377 1392 1405
retained earnings 19 18272 16198 11572
23213 20660 15912
noncontrolling interests 197 161 148
total equity 23410 20821 16060
the financial statements on pages 138 to 197 were approved by the board on 27 january 2011 and were signed on its behalf by
david r brennan simon lowth
director director
company’s registered number 2723534
consolidated statement of financial position
at 31 december astrazeneca annual report and form 20f information 2010 140 financial statements
financial statements
share
capital
m
share
premium
account
m
capital
redemption
reserve
m
merger
reserve
m
other
reserves
m
retained
earnings
m
total
m
non
controlling
interests
m
total
equity
m
at 1 january 2008 364 1888 91 433 1378 10624 14778 137 14915
profit for the period – – – – – 6101 6101 29 6130
other comprehensive income ––––– 1925 1925 19 1906
transfer to other reserves
1
–––– 27 27 –––
transactions with owners
dividends ––––– 2767 2767 – 2767
issue of ordinary shares 1 158–––– 159– 159
repurchase of ordinary shares 3 – 3 – – 610 610 – 610
sharebased payments ––––– 176 176– 176
transfer from noncontrolling interests to payables – – – – – – – 11 11
dividend paid by subsidiary to noncontrolling interests – – – – – – – 26 26
net movement 2 158 3 – 27 948 1134 11 1145
at 31 december 2008 362 2046 94 433 1405 11572 15912 148 16060
profit for the period – – – – – 7521 7521 23 7544
other comprehensive income ––––– 54 54 – 54
transfer to other reserves
1
–––– 13 13–––
transactions with owners
dividends ––––– 3026 3026 – 3026
issue of ordinary shares 1 134–––– 135– 135
sharebased payments ––––– 172 172– 172
transfer from noncontrolling interests to payables – – – – – – – 9 9
dividend paid by subsidiary to noncontrolling interests – – – – – – – 1 1
net movement 1 134 – – 13 4626 4748 13 4761
at 31 december 2009 363 2180 94 433 1392 16198 20660 161 20821
profit for the period ––––– 8053 8053 28 8081
other comprehensive income ––––– 5 5 20 25
transfer to other reserves
1
–––– 15 15–––
transactions with owners
dividends – – – – – 3494 3494 – 3494
issue of ordinary shares 2 492–––– 494– 494
repurchase of ordinary shares 13 – 13 – – 2604 2604 – 2604
sharebased payments ––––– 99 99– 99
transfer from noncontrolling interests to payables ––––––– 11 11
dividend paid by subsidiary to noncontrolling interests ––––––– 1 1
net movement 11 492 13 – 15 2074 2553 36 2589
at 31 december 2010 352 2672 107 433 1377 18272 23213 197 23410
1
 amounts charged or credited to other reserves relate to exchange adjustments arising on goodwill
consolidated statement of changes in equity
for the year ended 31 december astrazeneca annual report and form 20f information 2010 financial statements 141
corporate governance additional information financial statements overview business review
notes
2010
m
2009
m
2008
m
cash flows from operating activities
profit before tax 10977 10807 8681
finance income and expense 3 517 736 463
depreciation amortisation and impairment 2741 2087 2620
decreaseincrease in trade and other receivables 10 256 1032
decrease in inventories 88 6 185
decreaseincrease in trade and other payables and provisions 16 1579 637
other noncash movements 463 200 87
cash generated from operations 13854 14759 11641
interest paid 641 639 690
tax paid 2533 2381 2209
net cash inflow from operating activities 10680 11739 8742
cash flows from investing activities
acquisitions of business operations 22 348 – –
movement in shortterm investments and fixed deposits 239 1371 1
purchase of property plant and equipment 791 962 1095
disposal of property plant and equipment 83 138 38
purchase of intangible assets 1390 624 2944
disposal of intangible assets 210 269 –
purchase of noncurrent asset investments 34 31 40
disposal of noncurrent asset investments 5 3 32
interest received 174 113 149
payments made by subsidiaries to noncontrolling interests 10 11 37
net cash outflow from investing activities 2340 2476 3896
net cash inflow before financing activities 8340 9263 4846
cash flows from financing activities
proceeds from issue of share capital 494 135 159
repurchase of shares 2604 – 610
issue of loans – – 787
repayment of loans 1741 650 –
dividends paid 3361 2977 2739
movement in shortterm borrowings 8 137 3959
net cash outflow from financing activities 7220 3629 6362
net increasedecrease in cash and cash equivalents in the period 1120 5634 1516
cash and cash equivalents at the beginning of the period 9828 4123 5727
exchange rate effects 33 71 88
cash and cash equivalents at the end of the period 13 10981 9828 4123
consolidated statement of cash flows
for the year ended 31 december astrazeneca annual report and form 20f information 2010 142 financial statements
financial statements
basis for preparation of financial statements 
on a going concern basis
information on the business environment astrazeneca operates 
in including the factors underpinning the industry’s future growth 
prospects are included in the directors’ report details of the 
product portfolio of the group our approach to product development 
and our development pipeline are covered in detail with additional 
information by therapy area in the directors’ report
the financial position of the group its cash flows liquidity position 
and borrowing facilities are described in the financial review from 
page 78 in addition note 23 to the financial statements includes 
the group’s objectives policies and processes for managing 
its capital its financial risk management objectives details of its 
financial instruments and hedging activities and its exposures to 
credit market and liquidity risk further details of the group’s cash 
balances and borrowings are included in notes 13 and 14 of the 
financial statements
the group has considerable financial resources available as at 
31 december 2010 the group has 1525bn in financial resources 
cash balances of 111bn and committed bank facilities of 425bn 
with only 01bn of debt due within one year the group’s revenues 
are largely derived from sales of products which are covered by 
patents and for which historically at least demand has been relatively 
unaffected by changes in the general economy in addition the group 
has a wide diversity of customers and suppliers across different 
geographic areas as a consequence the directors believe that 
the group is well placed to manage its business risks successfully 
despite the current uncertain economic outlook
after making enquiries the directors have a reasonable expectation 
that the company and the group have adequate resources 
to continue in operational existence for the foreseeable future 
accordingly they continue to adopt the going concern basis in 
preparing the annual report and financial statements
estimates and judgements
the preparation of the financial statements in conformity with 
generally accepted accounting principles requires management to 
make estimates and judgements that affect the reported amounts 
of assets and liabilities at the date of the financial statements and 
the reported amounts of revenues and expenses during the reporting 
period actual results could differ from those estimates
judgements include classification of transactions between profit 
and the consolidated statement of financial position and the 
determination of operating segments while estimates focus on 
areas such as carrying values and estimated lives
astrazeneca’s management considers the following to be the most 
important accounting policies in the context of the group’s operations
the accounting policy descriptions set out the areas where 
judgements and estimates need exercising the most significant 
of which are revenue recognition research and development 
including impairment reviews of associated intangible assets 
business combinations and goodwill litigation and environmental 
liabilities employee benefits taxation and operating segments
further information on critical judgements made in applying 
accounting policies including details of significant methods and 
assumptions used is included in notes 6 8 9 15 18 22 and 25  
in the financial statements financial risk management policies  
are detailed in note 23
basis of accounting and preparation of financial information
the consolidated financial statements have been prepared under 
the historical cost convention modified to include revaluation to 
fair value of certain financial instruments as described below 
in accordance with the companies act 2006 and international 
financial reporting standards ifrss as adopted by the eu 
adopted ifrs in response to the ias regulation ec 16062002 
the consolidated financial statements also comply fully with 
ifrss as issued by the international accounting standards board
during the year the company adopted the revised ifrs 3 ‘business 
combinations’ issued in january 2008 the revised ifrs 3 included 
the following changes relevant to the group’s operations
  contingent consideration is measured at fair value with 
subsequent changes to the fair value being recognised in profit
  transaction costs other than share and debt issue costs are 
expensed as incurred 
  any preexisting interest in the acquiree is measured at fair value 
with the gain or loss recognised in profit
  any noncontrolling minority interest is measured at either fair 
value or at its proportionate interest in the identifiable assets and 
liabilities of the acquiree on a transactionbytransaction basis
the revised standard was effective for astrazeneca business 
combinations on or after 1 january 2010 and has been applied 
prospectively from that date our acquisition of novexel sa was 
accounted for under the revised standard further details of this 
acquisition are included in note 22 of the financial statements 
the adoption of this revised standard has not had a significant 
effect on the group’s profit for the period net assets or cash flows
the amendments to ias 27 ‘consolidated and separate financial 
statements 2008’ ifrs 5 ‘noncurrent assets held for sale and 
discontinued operations’ ias 39 ‘financial instruments recognition 
and measurement – eligible hedged items’ ifric 9 and ias 39 
‘embedded derivatives’ ifrs 2 ‘group cashsettled sharebased 
payment transactions’ and the improvements to ifrs issued april 
2009 have all been adopted in the year
the adoptions of the amendments and improvements did not have 
a significant effect on the group’s profit for the period net assets or 
cash flows
ifric 17 ‘distribution of noncash assets to owners’ and ifric 18 
‘transfer of assets from customers’ have also been adopted by the 
company neither of which had a significant effect on the group’s 
profit for the period net assets or cash flows
the company has elected to prepare the company financial 
statements in accordance with uk accounting standards these 
are presented on pages 199 to 203 and the accounting policies in 
respect of company information are set out on page 200
the consolidated financial statements are presented in  
us dollars which is the company’s functional currency
in preparing their individual financial statements the accounting 
policies of some overseas subsidiaries do not conform with 
adopted ifrss therefore where appropriate adjustments are 
made in order to present the consolidated financial statements  
on a consistent basis
group accounting policies astrazeneca annual report and form 20f information 2010 financial statements 143
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three years to 20 years these assets are not used in the research 
and development activities of other products
intangible assets relating to products in development both internally 
generated and externally acquired are subject to impairment testing 
annually all intangible assets are tested for impairment when there 
are indications that the carrying value may not be recoverable any 
impairment losses are recognised immediately in profit intangible 
assets relating to products which fail during development or for which 
development ceases for other reasons are tested for impairment 
at the point of termination and are written down to their fair value 
which is usually zero
business combinations and goodwill
on the acquisition of a business fair values are attributed to the 
identifiable assets and liabilities and contingent liabilities unless the 
fair value cannot be measured reliably in which case the value is 
subsumed into goodwill where fair values of acquired contingent 
liabilities cannot be measured reliably the assumed contingent liability 
is not recognised but is disclosed in the same manner as other 
contingent liabilities goodwill is the difference between the fair 
value of the consideration and the fair value of net assets acquired
goodwill arising on acquisitions is capitalised and subject to an 
impairment review both annually and when there is an indication that 
the carrying value may not be recoverable between 1 january 1998 
and 31 december 2002 goodwill was amortised over its estimated 
useful life such amortisation ceased on 31 december 2002
the group’s policy up to and including 1997 was to eliminate 
goodwill arising upon acquisitions against reserves under ifrs 1 
‘firsttime adoption of international financial reporting standards’ 
and ifrs 3 ‘business combinations’ such goodwill will remain 
eliminated against reserves
employee benefits
the group accounts for pensions and other employee benefits 
principally healthcare under ias 19 ‘employee benefits’ in respect of 
defined benefit plans obligations are measured at discounted present 
value while plan assets are measured at fair value the operating and 
financing costs of such plans are recognised separately in profit 
current service costs are spread systematically over the lives of 
employees and financing costs are recognised in full in the periods 
in which they arise actuarial gains and losses are recognised 
immediately in other comprehensive income
where the calculation results in a benefit to the group the recognised 
asset is limited to the present value of any available future refunds 
from the plan or reductions in future contributions to the plan 
payments to defined contribution plans are recognised in profit as 
they fall due
taxation
the current tax payable is based on taxable profit for the year 
taxable profit differs from reported profit because it excludes items 
that are never taxable or tax deductible the group’s current tax 
assets and liabilities are calculated using tax rates that have been 
enacted or substantively enacted by the reporting date
deferred tax is provided using the balance sheet liability method 
providing for temporary differences between the carrying amounts of 
assets and liabilities for financial reporting purposes and the amounts 
used for taxation purposes deferred tax assets are recognised to 
the extent that it is probable that taxable profit will be available 
against which the asset can be utilised this requires judgements 
to be made in respect of the availability of future taxable income
revenue
revenues comprise sales and income under copromotion and 
codevelopment agreements
income under copromotion and codevelopment agreements is 
recognised when it is earned as defined in the contract and can be 
reliably estimated in general this is upon the sale of the copromoted
developed product or upon the delivery of a promotional or 
developmental service
revenues exclude intercompany revenues and valueadded taxes 
and represent net invoice value less estimated rebates returns and 
settlement discounts revenues are recognised when the significant 
risks and rewards of ownership have been transferred to a third party 
in general this is upon delivery of the products to wholesalers 
in markets where returns are significant currently only in the us 
estimates of returns are accounted for at the point revenue is 
recognised in markets where returns are not significant they are 
recorded when returned
when a product faces generic competition particular attention 
is given to the possible levels of returns and in cases where the 
circumstances are such that the level of returns and hence revenue 
cannot be measured reliably revenues are only recognised when 
the right of return expires which is generally on ultimate prescription 
of the product to patients
for the us market we estimate the quantity and value of goods which 
may ultimately be returned at the point of sale our returns accruals 
are based on actual experience over the preceding 12 months for 
established products together with marketrelated information such 
as estimated stock levels at wholesalers and competitor activity 
which we receive via third party information services for newly 
launched products we use rates based on our experience with 
similar products or a predetermined percentage
research and development
research expenditure is recognised in profit in the year in which it 
is incurred
internal development expenditure is capitalised only if it meets the 
recognition criteria of ias 38 ‘intangible assets’ where regulatory 
and other uncertainties are such that the criteria are not met the 
expenditure is recognised in profit and this is almost invariably 
the case prior to approval of the drug by the relevant regulatory 
authority where however recognition criteria are met intangible 
assets are capitalised and amortised on a straightline basis over 
their useful economic lives from product launch at 31 december 
2010 no amounts have met recognition criteria
payments to inlicence products and compounds from external third 
parties for new research and development projects inprocess 
research and development generally taking the form of upfront 
payments and milestones are capitalised where payments made 
to third parties represent future research and development 
activities an evaluation is made as to the nature of the payments 
such payments are expensed if they represent compensation for 
subcontracted research and development services not resulting in a 
transfer of intellectual property by contrast payments are 
capitalised if they represent compensation for the transfer of 
intellectual property developed at the risk of the third party since 
acquired products and compounds will only generate sales and 
cash inflows following launch our policy is to minimise the period 
between final approval and launch if it is within astrazeneca’s control 
to do so assets capitalised are amortised generally on a straightline 
basis over their useful economic lives from product launch under 
this policy it is not possible to determine precise economic lives for 
individual classes of intangible assets however lives range from  astrazeneca annual report and form 20f information 2010 144 financial statements
financial statements
the financial results of subsidiaries are consolidated from the date 
control is obtained until the date that control ceases
inventories
inventories are stated at the lower of cost and net realisable value 
the first in first out or an average method of valuation is used 
for finished goods and work in progress cost includes directly 
attributable costs and certain overhead expenses including 
depreciation selling expenses and certain other overhead expenses 
principally central administration costs are excluded net realisable 
value is determined as estimated selling price less all estimated costs 
of completion and costs to be incurred in selling and distribution
writedowns of inventory occur in the general course of business 
and are recognised in cost of sales
trade and other receivables
trade and other receivables are recognised initially at fair value 
subsequent to initial recognition they are measured at amortised cost 
using the effective interest rate method less any impairment losses
trade and other payables
trade and other payables are recognised initially at fair value 
subsequent to initial recognition they are measured at amortised 
cost using the effective interest rate method
financial instruments
the group’s financial instruments include interests in leases and 
rights and obligations under employee benefit plans which are dealt 
with in specific accounting policies
the group’s other financial instruments include
  cash and cash equivalents
  fixed deposits
  other investments
  bank and other borrowings
  derivatives
cash and cash equivalents
cash and cash equivalents comprise cash in hand current balances 
with banks and similar institutions and highly liquid investments 
with maturities of three months or less when acquired they are 
readily convertible into known amounts of cash and are held at 
amortised cost
fixed deposits
fixed deposits comprising principally funds held with banks and 
other financial institutions are initially measured at fair value plus 
direct transaction costs and are subsequently remeasured to 
amortised cost using the effective interest rate method at each 
reporting date changes in carrying value are recognised in profit
other investments
where investments have been classified as held for trading they 
are measured initially at fair value and subsequently remeasured to 
fair value at each reporting date changes in fair value are recognised 
in profit
in all other circumstances the investments are initially measured at 
fair value including direct transaction costs and are subsequently 
remeasured to fair value at each reporting date changes in 
carrying value due to changes in exchange rates or impairments are 
recognised in profit all other changes in fair value are recognised 
in other comprehensive income
no deferred tax asset or liability is recognised in respect of temporary 
differences associated with investments in subsidiaries branches 
and joint ventures where the group is able to control the timing of 
reversal of the temporary differences and it is probable that the 
temporary differences will not reverse in the foreseeable future
the group’s deferred tax assets and liabilities are calculated using 
tax rates that are expected to apply in the period when the liability 
is settled or the asset realised based on tax rates that have been 
enacted or substantively enacted by the reporting date
accruals for tax contingencies require management to make 
judgements and estimates of ultimate exposures in relation to tax 
audit issues tax benefits are not recognised unless the tax positions 
will probably be sustained once considered to be probable 
management reviews each material tax benefit to assess whether 
a provision should be taken against full recognition of that benefit 
on the basis of potential settlement through negotiation andor 
litigation all provisions are included in current liabilities any recorded 
exposure to interest on tax liabilities is provided for in the tax charge 
see note 25 for further details
sharebased payments
all plans are assessed and have been classified as equity settled 
the grant date fair value of employee share option awards is 
generally calculated using the blackscholes model in accordance 
with ifrs 2 ‘sharebased payment’ the resulting cost is recognised 
in profit over the vesting period of the options being the period in 
which the services are received the value of the charge is adjusted 
to reflect expected and actual levels of awards vesting except where 
the failure to vest is as a result of not meeting a market condition 
cancellations of equity instruments are treated as an acceleration 
of the vesting period and any outstanding charge is recognised in 
profit immediately
property plant and equipment
the group’s policy is to write off the difference between the cost 
of each item of property plant and equipment and its residual value 
systematically over its estimated useful life assets under construction 
are not depreciated
reviews are made annually of the estimated remaining lives and 
residual values of individual productive assets taking account of 
commercial and technological obsolescence as well as normal 
wear and tear under this policy it becomes impractical to calculate 
average asset lives exactly however the total lives range from 
approximately 10 to 50 years for buildings and three to 13 years 
for plant and equipment all items of property plant and equipment 
are tested for impairment when there are indications that the carrying 
value may not be recoverable any impairment losses are recognised 
immediately in profit
borrowing costs
the group has no borrowing costs with respect to the acquisition 
or construction of qualifying assets all other borrowing costs are 
recognised in profit as incurred and in accordance with the effective 
interest rate method
leases
rentals under operating leases are charged to profit on a straight
line basis
subsidiaries
a subsidiary is an entity controlled directly or indirectly by 
astrazeneca plc control is regarded as the power to govern the 
financial and operating policies of the entity so as to obtain benefits 
from its activities astrazeneca annual report and form 20f information 2010 financial statements 145
corporate governance additional information financial statements overview business review
in the consolidated financial statements income and expense items 
for group entities with a functional currency other than us dollars 
are translated into us dollars at average exchange rates which 
approximate to actual rates for the relevant accounting periods 
assets and liabilities are translated at the us exchange rates prevailing 
at the reporting date exchange differences arising on consolidation 
are taken in other comprehensive income
exchange differences arising on retranslation of net investments 
in subsidiaries and of foreign currency loans which are designated 
in an effective hedge relationship are taken in other comprehensive 
income in the consolidated financial statements gains and losses 
accumulated in the translation reserve will be recycled to profit when 
the foreign operation is sold
litigation and environmental liabilities
through the normal course of business astrazeneca is involved 
in legal disputes the settlement of which may involve cost to the 
group provision is made where an adverse outcome is probable 
and associated costs including related legal costs can be estimated 
reliably in other cases appropriate disclosures are included
where it is considered that the group is more likely than not to 
prevail or in the rare circumstances where the amount of the 
legal liability cannot be estimated reliably legal costs involved in 
defending the claim are charged to profit as they are incurred
where it is considered that the group has a valid contract which 
provides the right to reimbursement from insurance or otherwise 
of legal costs andor all or part of any loss incurred or for which 
a provision has been established the best estimate of the amount 
expected to be received is recognised as an asset
astrazeneca is exposed to environmental liabilities relating to its 
past operations principally in respect of soil and groundwater 
remediation costs provisions for these costs are made when there 
is a present obligation and where it is probable that expenditure on 
remedial work will be required and a reliable estimate can be made 
of the cost provisions are discounted where the effect is material
impairment
the carrying values of nonfinancial assets other than inventories 
and deferred tax assets are reviewed at least annually to determine 
whether there is any indication of impairment for goodwill intangible 
assets under development and for any other assets where such 
indication exists the asset’s recoverable amount is estimated based 
on the greater of its value in use and its fair value less cost to sell 
in assessing value in use the estimated future cash flows adjusted 
for the risks specific to each asset are discounted to their present 
value using a discount rate that reflects current market assessments 
of the time value of money and the general risks affecting the 
pharmaceutical industry for the purpose of impairment testing 
assets are grouped together into the smallest group of assets 
that generates cash inflows from continuing use that are largely 
independent of the cash flows of other assets impairment losses 
are recognised in profit
operating segments
in 2009 the company adopted ifrs 8 ‘operating segments’ ifrs 8 
requires an entity to report financial and descriptive information 
about its reportable segments reportable segments are operating 
segments or aggregations of operating segments that meet 
specified criteria in addressing these criteria it was determined 
that astrazeneca is engaged in a single business activity of 
pharmaceuticals and that the group does not have multiple 
operating segments our pharmaceuticals business consists of 
impairments are recorded in profit when there is a decline in the 
value of an investment that is deemed to be other than temporary 
on disposal of the investment the cumulative amount recognised 
in other comprehensive income is recognised in profit as part of the 
gain or loss on disposal
bank and other borrowings
the group uses derivatives principally interest rate swaps to hedge 
the interest rate exposure inherent in a portion of its fixed interest 
rate debt in such cases the group will either designate the debt 
as fair value through profit or loss when certain criteria are met or 
as the hedged item under a fair value hedge
if the debt instrument is designated as fair value through profit the 
debt is initially measured at fair value with direct transaction costs 
being included in profit as an expense and is remeasured to fair 
value at each reporting date with changes in carrying value being 
recognised in profit along with changes in the fair value of the 
related derivative such a designation has been made where this 
significantly reduces an accounting mismatch which would result 
from recognising gains and losses on different bases
if the debt is designated as the hedged item under a fair value hedge 
the debt is initially measured at fair value with direct transaction 
costs being amortised over the life of the bonds and is remeasured 
for fair value changes in respect of the hedged risk at each reporting 
date with changes in carrying value being recognised in profit 
along with changes in the fair value of the related derivative
if certain criteria are met nonus dollar denominated loans are 
designated as net investment hedges of foreign operations exchange 
differences arising on retranslation of net investments and of foreign 
currency loans which are designated in an effective net investment 
hedge relationship are recognised in other comprehensive income 
all other exchange differences giving rise to changes in the carrying 
value of foreign currency loans and overdrafts are recognised in profit
other interestbearing loans are initially measured at fair value 
including direct transaction costs and are subsequently remeasured 
to amortised cost using the effective interest rate method at each 
reporting date changes in carrying value are recognised in profit
derivatives
derivatives are initially measured at fair value with direct transaction 
costs being included in profit as an expense and are subsequently 
remeasured to fair value at each reporting date changes in carrying 
value are recognised in profit
foreign currencies
foreign currency transactions being transactions denominated 
in a currency other than an individual group entity’s functional 
currency are translated into the relevant functional currencies of 
individual group entities at average rates for the relevant monthly 
accounting periods which approximate to actual rates
monetary assets arising from foreign currency transactions are 
retranslated at exchange rates prevailing at the reporting date 
exchange gains and losses on loans and on shortterm foreign 
currency borrowings and deposits are included within finance 
expense exchange differences on all other foreign currency 
transactions are taken to operating profit in the individual group 
entity’s accounting records
nonmonetary items arising from foreign currency transactions are 
not retranslated in the individual group entity’s accounting records astrazeneca annual report and form 20f information 2010 146 financial statements
financial statements
accounting standards and interpretations issued 
but not yet adopted
ifrs 9 ‘financial instruments’ was issued in november 2009 it is 
applicable to financial assets and financial liabilities for financial 
assets it requires classification and measurement in either the 
amortised cost or the fair value category for a company’s own debt 
held at fair value the standard requires the movement in the fair 
value as a result of changes in the company’s own credit risk to be 
included in other comprehensive income it is effective for accounting 
periods beginning on or after 1 january 2013 the standard has 
not yet been endorsed by the eu the adoption of ifrs 9 is not 
expected to have a significant impact upon the group’s net results 
or net assets
improvements to ifrs issued in may 2010 is yet to be endorsed 
by the eu and contains amendments to several individual accounting 
standards which are effective for accounting periods beginning on 
or after 1 july 2010 or 1 january 2011 none of the amendments 
are expected to have a significant impact upon the group’s net 
results net assets or disclosures
ias 24 ‘related party disclosures’ was revised by the iasb in 
2009 and is effective for accounting periods beginning on or after 
1 january 2011 the changes introduced relate mainly to disclosure 
requirements for governmentrelated entities and the definition of 
a related party and are not expected to have a significant impact 
on the disclosures of astrazeneca the revised standard was 
endorsed by the eu during 2010
the amendments to ias 32 ‘classification of rights issues’ endorsed 
by the eu in 2009 and ifrs 7 ‘disclosures – transfer of financial 
assets’ and ias 12 ‘deferred tax recovery of underlying assets’ 
not yet endorsed by the eu are effective for accounting periods 
beginning on or after 1 february 2010 1 july 2011 and 1 january 
2012 respectively they are not expected to have a significant 
impact upon the group’s net results net assets or disclosures
the following ifric amendments and interpretations have been 
issued but are not yet adopted by astrazeneca
  amendments to ifric 13 ‘customer loyalty programmes’ – 
fair value of award credit
  amendments to ifric 14 ‘prepayments of a minimum 
funding requirement’ 
  ifric 19 ‘extinguishing financial liabilities with 
equity instruments’
the amendments and interpretations are effective for accounting 
periods commencing on or after 1 january 2011 1 january 2011 and 
1 july 2010 respectively none of the amendments or interpretations 
are expected to have a significant impact upon adoption 
there is no impact expected from any other standards that are 
available for early adoption but that have not been adopted
the discovery and development of new products which are then 
manufactured marketed and sold all of these functional activities 
take place and are managed globally on a highly integrated basis 
we do not manage these individual functional areas separately 
we consider that the senior executive team set is astrazeneca’s 
chief operating decisionmaking body as defined by ifrs 8 
the operation of the set is principally driven by the management 
of the commercial operations research and development and 
manufacturing and supply the set also includes finance hr 
and general counsel representation
all significant operating decisions are taken by the set while 
members of the set have responsibility for implementation of 
decisions in their respective areas operating decision making is 
at set level as a whole where necessary these are implemented 
through crossfunctional subcommittees that consider the group
wide impact of a new decision for example product launch 
decisions would be initially considered by the set and on approval 
passed to an appropriate subteam for implementation the impacts 
of being able to develop produce deliver and commercialise 
a wide range of pharmaceutical products drive the set decision 
making process
in assessing performance the set reviews financial information 
on an integrated basis for the group as a whole substantially in 
the form of and on the same basis as the group’s ifrs financial 
statements the high upfront cost of discovering and developing 
new products coupled with the relatively insignificant and stable 
unit cost of production means that there is not the clear link that 
exists in many manufacturing businesses between the revenue 
generated on an individual product sale and the associated cost 
and hence margin generated on a product consequently the 
profitability of individual drugs or classes of drugs is not considered 
a key measure of performance for the business and is not monitored 
by the set
resources are allocated on a groupwide basis according to need 
in particular capital expenditure inlicensing and research and 
development resources are allocated between activities on merit 
based on overall therapeutic considerations and strategy under the 
aegis of the group’s portfolio investment board to facilitate a group
wide single combined discovery and development strategy 
the group’s acquisitions in the biologics area medimmune and 
cambridge antibody technology group plc have been integrated 
into the existing management structure of astrazeneca both for 
allocation of resources and for assessment and monitoring of 
performance purposes as such although biologics is a relatively 
new technological area for the group it does not operate as 
a separate operating segment
international accounting transition
on transition to using adopted ifrs in the year ended 31 december 
2005 the company took advantage of several optional exemptions 
available in ifrs 1 ‘firsttime adoption of international financial 
reporting standards’ the major impacts which are of continuing 
importance are detailed below
  business combinations – ifrs 3 ‘business combinations’ has 
been applied from 1 january 2003 the date of transition rather 
than being applied fully retrospectively as a result the combination 
of astra and zeneca is still accounted for as a merger rather than 
through purchase accounting if purchase accounting had been 
adopted zeneca would have been deemed to have acquired astra
  cumulative exchange differences – the group chose to set the 
cumulative exchange difference reserve at 1 january 2003 to zero astrazeneca annual report and form 20f information 2010 financial statements 147
corporate governance additional information financial statements overview business review
notes to the group financial statements
1 product revenue information
2010
m
2009
m
2008
m
gastrointestinal
nexium 4969 4959 5200
losecprilosec 986 946 1055
others 133 106 89
total gastrointestinal 6088 6011 6344
cardiovascular
crestor 5691 4502 3597
atacand 1483 1436 1471
selokentoprolxl 1210 1443 807
plendil 255 241 268
zestril 157 184 236
onglyza
™
69 11 –
others 538 559 584
total cardiovascular 9403 8376 6963
respiratory  inflammation
symbicort 2746 2294 2004
pulmicort 872 1310 1495
rhinocort 227 264 322
oxis 63 63 71
others 191 201 236
total respiratory  inflammation 4099 4132 4128
oncology
arimidex 1512 1921 1857
zoladex 1115 1086 1138
casodex 579 844 1258
iressa 393 297 265
faslodex 345 262 249
nolvadex 89 88 85
abraxane
™
– – 64
ethyol 8 15 28
others 4 5 10
total oncology 4045 4518 4954
neuroscience
seroquel 5302 4866 4452
local anaesthetics 605 599 605
zomig 428 434 448
diprivan 322 290 278
others 47 48 54
total neuroscience 6704 6237 5837
infection and other
synagis 1038 1082 1230
merrem 817 872 897
flumist 174 145 104
non seasonal flu 39 389 –
other products 108 143 220
total infection and other 2176 2631 2451
astra tech 535 506 529
aptium oncology 219 393 395
total 33269 32804 31601 astrazeneca annual report and form 20f information 2010 148 financial statements
financial statements
2 operating profit
operating profit includes the following items
research and development
research and development includes a 445m impairment of intangible assets related specifically to motavizumab see note 9
selling general and administrative costs
selling general and administrative expenses includes a provision of 592m with respect to seroquel legal matters the current status of 
these matters is described in note 25 these provisions constitute our best estimate at this time of losses expected for these matters
also included within selling general and administrative costs in 2010 are gains of 791m arising from changes made to benefits under certain 
of the group’s postretirement benefit plans chiefly the group’s uk pension plan further details of this gain are included in note 18
in 2009 astrazeneca was defending its interests in various federal and state investigations and civil litigation matters relating to drug marketing 
and pricing practices and in respect of which the group made provisions in aggregate of 636m during 2009 524m of this was made 
in respect of the us attorney’s office investigation into sales and marketing practices involving seroquel and 112m related to average 
wholesale price litigation 
other operating income and expense
2010
m 
2009
m
2008
m
royalties
income 522 255 288
amortisation 59 79 84
impairment 123 150 91
net gain on disposal of property plant and equipment 66 86
gains on disposal of product rights – 170 –
net lossgain on disposal of other intangible assets 1 1 17
gains on divestments of noncore products – 216 118
impairment of intangible assets relating to future licensing and contractual income – 115 –
other income 307 265 304
other expense – 18 –
other operating income and expense 712 553 524
royalty amortisation relates to income streams acquired with medimmune 
restructuring costs
during 2010 the group continued the restructuring programmes approved by the set and announced in previous years in addition the group 
announced further programmes during the year the tables below show the costs that have been charged in respect of these programmes 
by cost category and type severance provisions are detailed in note 17
2010
m
2009
m
2008
m
cost of sales 144 188 405
research and development 654 68 166
selling general and administrative costs 404 403 310
total charge 1202 659 881
2010
m
2009
m
2008
m
severance costs 505 262 499
accelerated depreciation and impairment 299 148 219
other 398 249 163
total charge 1202 659 881
3 finance income and expense
2010
m
2009
m
2008
m
finance income
returns on fixed deposits and equity securities 9 20 15
returns on shortterm deposits 33 22 127
expected return on postemployment defined benefit plan assets 451 388 584
fair value gains on debt interest rate swaps and investments 23 1 128
net exchange gains – 31 –
total 516 462 854 astrazeneca annual report and form 20f information 2010 financial statements 149
corporate governance additional information financial statements overview business review
3 finance income and expense continued
2010
m 
2009
m
2008
m
finance expense
interest on debt and commercial paper 450 542 664
interest on overdrafts and other financing costs 29 18 50
interest on postemployment defined benefit plan liabilities 543 493 589
fair value charges on debt interest rate swaps and investments – 145 2
net exchange losses 11 – 12
total 1033 1198 1317
net finance expense 517 736 463
the amount of exchange gains and losses recognised in profit other than those arising on financial instruments measured at fair value 
through profit or loss in accordance with ias 39 ‘financial instruments recognition and measurement’ see note 15 is a loss of 11m 
2009 gain of 31m 2008 loss of 12m
4 taxation
taxation recognised in the profit for the period in the consolidated statement of comprehensive income is as follows
2010
m 
2009
m
2008
m
current tax expense
current year 3065 2854 2946
adjustment for prior years 370 251 130
3435 3105 3076
deferred tax expense
 
origination and reversal of temporary differences 369 98 486
adjustment to prior years 170 60 39
539 158 525
taxation recognised in the profit for the period 2896 3263 2551
taxation relating to components of other comprehensive income is as follows
2010
m 
2009
m
2008
m
current and deferred tax
foreign exchange arising on consolidation 29 16 20
actuarial loss for the period 18 158 340
sharebased payments 9 17 9
deferred tax impact of reduction in uk tax rate 23 ––
other – 1 1
taxation relating to components of other comprehensive income 61 192 368
taxation has been provided at current rates on the profits earned for the periods covered by the group financial statements the 2010 prior 
period current tax adjustment relates mainly to an increase in provisions for tax contingencies and double tax relief partially offset by a benefit 
of 342m arising from a number of tax settlements including the uk matters described in note 25 and tax accrual to tax return adjustments 
the 2009 and 2008 prior period current tax adjustments relate mainly to tax accrual to tax return adjustments an increase in provisions in 
respect of a number of transfer pricing audits and double tax relief the 2010 prior period deferred tax adjustment relates mainly to tax accrual 
to tax return adjustments and a reclassification from deferred tax to current tax of amounts provided in relation to tax contingencies for prior 
periods the 2009 and 2008 prior year deferred tax adjustments relate to tax accrual to tax return adjustments and the recognition of previously 
unrecognised deferred tax assets to the extent that dividends remitted from overseas subsidiaries joint ventures and associates are expected 
to result in additional taxes appropriate amounts have been provided for no deferred tax has been provided for unremitted earnings of group 
companies overseas as these are considered permanently employed in the business of these companies unremitted earnings may be liable 
to overseas taxes andor uk taxation after allowing for double tax relief if distributed as dividends the aggregate amount of temporary 
differences associated with investments in subsidiaries and branches for which deferred tax liabilities have not been recognised totalled 
approximately 16768m at 31 december 2010 2009 14846m 2008 8449m
factors affecting future tax charges
as a group involved in worldwide operations astrazeneca is subject to several factors that may affect future tax charges principally the levels 
and mix of profitability in different jurisdictions transfer pricing regulations tax rates imposed and tax regime reforms it is the uk government’s 
intention to enact legislation which will reduce the main rate of uk corporation tax to 24 by 2014 in november 2010 the uk government 
also released a consultation document providing details on a proposed programme of corporate tax reforms including the introduction of 
a patent box regime details of material tax exposures and items currently under audit and negotiation are set out in note 25 astrazeneca annual report and form 20f information 2010 150 financial statements
financial statements
4 taxation continued
tax reconciliation to uk statutory rate
the table shown below reconciles the uk statutory tax charge to the group’s total tax charge
2010
m 
2009
m
2008
m
profit before tax 10977 10807 8681
notional taxation charge at uk corporation tax rate of 28 28 for 2009 285
 
for 2008 3074 3026 2474
differences in effective overseas tax rates 333 212 8
deferred tax credit relating to reduction in swedish uk and other tax rates
12
21 – 70
unrecognised deferred tax asset – 2 7
items not deductible for tax purposes 12 156 119
items not chargeable for tax purposes 36 20 48
adjustments in respect of prior periods 200 311 91
total tax charge for the year 2896 3263 2551
1
 the 2010 item relates to the reduction in the uk statutory corporation tax rate from 28 to 27 effective from 1 april 2011
2
 the 2008 item relates to the reduction in the swedish statutory corporation tax rate from 28 to 263 effective from 1 january 2009 
deferred tax
deferred tax assets and liabilities and the movements during the year before offset of balances within countries are as follows
property 
plant and 
equipment
m
intangible 
assets
m
pension 
and post 
retirement 
benefits
m
inter
company
inventory
transfers
m
untaxed
reserves
1
m
accrued
expenses
m
share
schemes
m
deferred
capital
gains
m
losses and
tax credits
carried
forward
m
other
m
total
m
deferred tax assets at 1 january 2008 66 59 531 907 – 611 62 – 330 71 2637
deferred tax liabilities at 1 january 2008 693 3653 3 21 1171 13 – 88 – 70 5712
net deferred tax balance at 1 january 2008 627 3594 528 886 1171 598 62 88 330 1 3075
taxation expense 122 375 24 55 119 37 43 – 12 24 525
other comprehensive income – – 340 – – – 9 – – 1 348
exchange 168 130 113 35 199 37 14 24 7 3 312
net deferred tax balance at 31 december 2008 337 3089 779 906 1091 598 100 64 335 27 1890
deferred tax assets at 31 december 2008 136 42 786 935 – 598 100 – 335 45 2977
deferred tax liabilities at 31 december 2008 473 3131 7 29 1091 – – 64 – 72 4867
net deferred tax balance at 31 december 2008 337 3089 779 906 1091 598 100 64 335 27 1890
taxation expense 175 232 61 17 303 146 5 – 100 23 158
other comprehensive income – – 140––– 17 ––– 157
exchange 46 36 54 29 80 18 7 7 4 1 64
net deferred tax balance at 31 december 2009 208 2893 912 952 1474 470 129 71 231 3 1955
deferred tax assets at 31 december 2009 266 47 918 968 – 553 129 – 231 34 3146
deferred tax liabilities at 31 december 2009 474 2940 6 16 1474 83 – 71 – 37 5101
net deferred tax balance at 31 december 2009 208 2893 912 952 1474 470 129 71 231 3 1955
taxation expense 131 465 178 3 24 66 5 2 50 19 539
other comprehensive income –– 46 ––– 4–– 1 41
acquisition of subsidiary undertaking
2
– 143 ––––––– 2 141
exchange 6 5 9 15 81 12 1 3 10 – 72
net deferred tax balance at 31 december 2010 83 2566 679 970 1531 548 127 66 271 19 1670
deferred tax assets at 31 december 2010 357 54 686 988 – 558 127 – 271 25 3066
deferred tax liabilities at 31 december 2010 440 2620 7 18 1531 10 – 66 – 44 4736
net deferred tax balance at 31 december 2010 83 2566 679 970 1531 548 127 66 271 19 1670
analysed in the statement of financial position after offset of balances within countries as
2010
m
2009
m
2008
m
deferred tax assets 1475 1292 1236
deferred tax liabilities 3145 3247 3126
net deferred tax balance 1670 1955 1890
1
 untaxed reserves relate to taxable profits where the tax liability is deferred to later periods
2
 the deferred tax liability of 143m relates to the acquisition of novexel sa 
unrecognised deferred tax assets
deferred tax assets of 128m have not been recognised in respect of deductible temporary differences 2009 104m 2008 80m 
because it is not probable that future taxable profit will be available against which the group can utilise the benefits therefrom astrazeneca annual report and form 20f information 2010 financial statements 151
corporate governance additional information financial statements overview business review
5 earnings per 025 ordinary share
2010 2009 2008
profit for the financial year attributable to equity holders m 8053 7521 6101
basic earnings per ordinary share 560 519 420
diluted earnings per ordinary share 557 519 420
weighted average number of ordinary shares in issue for basic earnings millions 1438 1448 1453
dilutive impact of share options outstanding millions 8 2 –
diluted weighted average number of ordinary shares in issue millions 1446 1450 1453
there are no options warrants or rights outstanding in respect of unissued shares except for employee share option schemes the number of 
options outstanding and the weighted average exercise price of these options is shown in note 24 the earnings figures used in the calculations 
above are posttax
6 segment information
astrazeneca is engaged in a single business activity of pharmaceuticals and the group does not have multiple operating segments our 
pharmaceuticals business consists of the discovery and development of new products which are then manufactured marketed and sold 
all of these functional activities take place and are managed globally on a highly integrated basis we do not manage these individual functional 
areas separately we consider that the set is astrazeneca’s chief operating decision making body as defined by ifrs 8 all significant 
operating decisions are taken by the set in assessing performance the set reviews financial information on an integrated basis for the 
group as a whole substantially in the form of and on the same basis as the group’s ifrs financial statements resources are allocated 
on a groupwide basis according to need in particular capital expenditure inlicensing and research and development resources are 
allocated between activities on merit based on overall therapeutic considerations and strategy under the aegis of the group’s portfolio 
investment board to facilitate a groupwide single combined discovery and development strategy
geographic areas
the tables below show information by geographic area and for revenue and property plant and equipment material countries the figures 
show the revenue operating profit and profit before tax made by companies located in that areacountry together with segment assets 
segment assets acquired net operating assets and property plant and equipment owned by the same companies export sales and the 
related profit are included in the areacountry from which those sales were made
revenue
2010
m 
2009
m
2008
m
uk
external 1952 1809 1910
intragroup 9957 9056 8460
11909 10865 10370
continental europe
belgium 331 353 380
france 1929 1880 1945
germany 1151 1197 1225
italy 1000 1012 1145
spain 762 742 832
sweden 1157 1070 1135
others 2440 2622 2696
intragroup 5144 4944 3895
13914 13820 13253
the americas
canada 1492 1188 1269
us 14010 14994 13657
others 1387 1113 1155
intragroup 2341 1962 1169
19230 19257 17250
asia africa  australasia
australia 981 790 763
japan 2458 2214 1861
china 1047 811 627
others 1172 1009 1001
intragroup 67 80 78
5725 4904 4330
continuing operations 50778 48846 45203
intragroup eliminations 17509 16042 13602
33269 32804 31601
export sales from the uk totalled 10944m for the year ended 31 december 2010 2009 9864m 2008 9439m intragroup pricing is 
determined on an arm’s length basis astrazeneca annual report and form 20f information 2010 152 financial statements
financial statements
6 segment information continued
operating profit profit before tax
profit from
2010
m
2009
m
2008
m
2010
m
2009
m
2008
m
uk 3258 3124 2907 3098 2813 2612
continental europe 4591 4809 3136 4581 4821 3233
the americas 3278 3265 2705 2932 2832 2440
asia africa  australasia 367 345 396 366 341 396
continuing operations 11494 11543 9144 10977 10807 8681
noncurrent assets
1
total assets
2010
m
2009
m
2008
m
2010
m
2009
m
2008
m
uk 3397 3810 3524 17171 17092 9870
continental europe 4470 3966 3674 7596 6706 6275
the americas 20808 21354 21762 28175 28397 28290
asia africa  australasia 522 476 436 3185 2725 2515
continuing operations 29197 29606 29396 56127 54920 46950
assets acquired
2
net operating assets
3
 
2010
m
2009
m
2008
m
2010
m
2009
m
2008
m
uk 314 537 440 3273 4473 4234
continental europe 1053 643 295 4827 4094 3683
the americas 1125 711 3252 18795 19186 21033
asia africa  australasia 107 79 67 2021 1707 1732
continuing operations 2599 1970 4054 28916 29460 30682
1
 ‘noncurrent assets’ exclude deferred tax assets and derivative financial instruments
2
 included in ‘assets acquired’ are those assets that are expected to be used during more than one period property plant and equipment goodwill and intangible assets
3
 ‘net operating assets’ exclude shortterm investments cash shortterm borrowings loans retirement benefit obligations and nonoperating receivables and payables
property plant and equipment
2010
m 
2009
m
2008
m
uk 1628 1901 1750
sweden 1647 1700 1722
us 2381 2386 2200
rest of the world 1301 1320 1371
continuing operations 6957 7307 7043
geographic markets
the table below shows revenue in each geographic market in which customers are located
2010
m 
2009
m
2008
m
uk 1033 1057 994
continental europe 9315 9286 9937
the americas 16629 17096 15945
asia africa  australasia 6292 5365 4725
continuing operations 33269 32804 31601
revenue is recognised at the point of delivery which is usually when title passes to the wholesaler transactions with two wholesalers 
individually represented greater than 10 of total revenue 2009 two 2008 two the values of these transactions recorded as revenue 
were 4164m and 4129m 2009 4319m and 4228m 2008 3936m and 3900m astrazeneca annual report and form 20f information 2010 financial statements 153
corporate governance additional information financial statements overview business review
7 property plant and equipment
land and
buildings
m
plant and
equipment
m
assets in course
of construction
m
total property
plant and
equipment
m
cost
at 1 january 2008 5819 10174 842 16835
capital expenditure 49 239 825 1113
transfer of assets into use 275 404 679 –
disposals and other movements 123 558 25 706
exchange adjustments 803 1725 100 2628
at 31 december 2008 5217 8534 863 14614
capital expenditure 8 209 750 967
transfer of assets into use 218 388 606 –
disposals and other movements 400 937 20 1357
exchange adjustments 293 609 42 944
at 31 december 2009 5336 8803 1029 15168
capital expenditure 13 225 570 808
transfer of assets into use 342 668 1010 –
disposals and other movements 40 449 4 493
exchange adjustments 48 46 6 100
at 31 december 2010 5699 9293 591 15583
depreciation
at 1 january 2008 2015 6521 1 8537
charge for year 247 812 – 1059
impairment 91 32 – 123
disposals and other movements 120 529 2 651
exchange adjustments 303 1192 2 1497
at 31 december 2008 1930 5644 3 7571
charge for year 219 674 – 893
impairment 44 6 – 50
disposals and other movements 343 859 4 1206
exchange adjustments 117 434 2 553
at 31 december 2009 1967 5899 5 7861
charge for year 302 774 – 1076
impairment 2 20 – 22
disposals and other movements 29 396 5 420
exchange adjustments 32 55 – 87
at 31 december 2010 2274 6352 – 8626
net book value
at 31 december 2008 3287 2890 866 7043
at 31 december 2009 3369 2904 1034 7307
at 31 december 2010 3425 2941 591 6957
impairment charges in 2010 were due to the termination of the certriad copromotion with abbott and various productivity initiatives 
these costs were recognised in cost of sales and research and development respectively
impairment charges in 2009 were due to the productivity initiatives in the global supply chain in italy and research and development in 
canada these costs were recognised in cost of sales and research and development respectively
impairment charges in 2008 were due to the productivity initiatives in the global supply chain in france and research and development 
in canada these costs were recognised in cost of sales and research and development respectively
2010
m 
2009
m
2008
m
the net book value of land and buildings comprised
freeholds 3425 3369 3287 astrazeneca annual report and form 20f information 2010 154 financial statements
financial statements
8 goodwill
2010
m 
2009
m
2008
m
cost
at 1 january 10228 10211 10225
additions through business combinations – ––
exchange adjustments 22 17 14
at 31 december 10206 10228 10211
amortisation and impairment losses
at 1 january 339 337 341
exchange adjustments 4 2 4
at 31 december 335 339 337
net book value at 31 december 9871 9889 9874
for the purpose of impairment testing of goodwill the group is regarded as a single cashgenerating unit
the recoverable amount is based on value in use using discounted riskadjusted projections of the group’s pretax cash flows over 10 years 
a period reflecting the average patentprotected lives of our current products the projections include assumptions about product launches 
competition from rival products and pricing policy as well as the possibility of generics entering the market in setting these assumptions we 
consider our past experience external sources of information including information on expected increases and ageing of the populations in 
our established markets and the expanding patient population in newer markets our knowledge of competitor activity and our assessment 
of future changes in the pharmaceutical industry the 10 year period is covered by internal budgets and forecasts given that internal budgets 
and forecasts are prepared for all projections no general growth rates are used to extrapolate internal budgets and forecasts for the purposes 
of determining value in use no terminal value is included as these cash flows are more than sufficient to establish that an impairment does 
not exist
in arriving at value in use we disaggregate our projected pretax cash flows into groups reflecting similar risks and tax effects for each group 
of cash flows we use an appropriate discount rate reflecting those risks and tax effects in arriving at the appropriate discount rate for each 
group of cash flows we adjust astrazeneca’s posttax weighted average cost of capital 70 for 2010 76 for 2009 76 for 2008 to 
reflect the impact of relevant industry risks the time value of money and tax effects the weighted average pretax discount rate we used 
was approximately 10 11 for 2009 11 for 2008
as a further check we compare our market capitalisation to the book value of our net assets and this indicates significant surplus at 
31 december 2010 and 31 december 2009 and 31 december 2008
no goodwill impairment was identified
the group has also performed sensitivity analysis calculations on the projections used and discount rate applied the directors have concluded 
that given the significant headroom that exists and the results of the sensitivity analysis performed there is no significant risk that reasonable 
changes in any key assumptions would cause the carrying value of goodwill to exceed its value in use astrazeneca annual report and form 20f information 2010 financial statements 155
corporate governance additional information financial statements overview business review
9 intangible assets
product 
marketing and
distribution rights
m
other
intangibles
m
software
development
costs
m
total
m
cost
at 1 january 2008 11549 2385 976 14910
additions – separately acquired 2743 20 178 2941
disposals – 33 30 63
exchange and other adjustments 770 197 133 1100
at 31 december 2008 13522 2175 991 16688
additions – separately acquired 764 46 193 1003
disposals 200 1 – 201
exchange and other adjustments 267 84 28 379
at 31 december 2009 14353 2304 1212 17869
additions through business combinations 548 – – 548
additions – separately acquired 1017 20 206 1243
disposals 239 2 – 241
exchange and other adjustments 125 13 19 119
at 31 december 2010 15804 2335 1399 19538
amortisation and impairment losses
at 1 january 2008 2373 528 542 3443
amortisation for year 529 182 96 807
impairment 516 91 24 631
disposals – 9 10 19
exchange and other adjustments 357 104 36 497
at 31 december 2008 3061 688 616 4365
amortisation for year 481 162 86 729
impairment 93 273 49 415
disposals 67 – – 67
exchange and other adjustments 159 25 17 201
at 31 december 2009 3727 1148 768 5643
amortisation for year 573 121 116 810
impairment 699 131 3 833
disposals – 1 – 1
exchange and other adjustments 89 26 20 95
at 31 december 2010 5088 1425 867 7380
net book value 
at 31 december 2008 10461 1487 375 12323
at 31 december 2009 10626 1156 444 12226
at 31 december 2010 10716 910 532 12158
other intangibles consist mainly of licensing and rights to contractual income streams
amortisation charges are recognised in profit as follows
product 
marketing and
distribution rights
m
other
intangibles
m
software
development
costs
m
total
m
year ended 31 december 2008
cost of sales 39 – – 39
research and development 10 – – 10
selling general and administrative costs 480 35 96 611
other operating income and expense – 147 – 147
529 182 96 807
year ended 31 december 2009
cost of sales 48 – – 48
selling general and administrative costs 433 27 86 546
other operating income and expense – 135 – 135
481 162 86 729
year ended 31 december 2010
cost of sales 60 – – 60
selling general and administrative costs 513 22 116 651
other operating income and expense – 99 – 99
573 121 116 810 astrazeneca annual report and form 20f information 2010 156 financial statements
financial statements
9 intangible assets continued 
impairment charges are recognised in profit as follows
product 
marketing and
distribution rights
m
other
intangibles
m
software
development
costs
m
total
m
year ended 31 december 2008
cost of sales 115 – – 115
research and development 144 – – 144
selling general and administrative costs 257 – 24 281
other operating income and expense – 91 – 91
516 91 24 631
year ended 31 december 2009
research and development 93 7 – 100
selling general and administrative costs – 1 49 50
other operating income and expense – 265 – 265
93 273 49 415
year ended 31 december 2010
cost of sales 128 – – 128
research and development 571 – – 571
selling general and administrative costs –336
other operating income and expense – 128 – 128
699 131 3 833
amortisation and impairment charges
the 2010 impairment of product marketing and distribution rights results from the withdrawal of the biological license application pending 
at the fda for motavizumab 445m and the termination of the lesogaberan development 128m and other development projects in the 
year the 2010 impairment of other intangibles chiefly results from a reassessment of the future royalties expected to be received relating to the 
hpv cervical cancer vaccine
the 2009 impairment of product marketing and distribution rights results from the termination of development projects during the year the 
2009 impairment of other intangibles results from a reassessment of the future royalties expected to be received relating to the hpv cervical 
cancer vaccine and a reassessment of other future licensing and contractual income expected to be earned within our biologics business 
the 2008 impairment of product marketing and distribution rights results in part from the settlement of the pulmicort respules patent 
litigation with teva 115m and the ‘at risk’ launch of a generic competitor to ethyol 257m the 2008 impairment of other intangibles 
results from a reassessment of the future royalties expected to be received relating to the hpv cervical cancer vaccine these impairment 
charges were determined using value in use calculations applying the same considerations as above the remaining 144m impairment of 
product marketing and distribution rights results from the termination of projects in development during the year
the write downs in value of intangible assets other than those arising from termination of research and development activities were determined 
based on value in use calculations using discounted riskadjusted projections of the products’ expected cash flows over a period reflecting 
the patentprotected lives of the individual products the full period of projections is covered by internal budgets and forecasts in arriving at 
the appropriate discount rate to use for each product we adjust astrazeneca’s posttax weighted average cost of capital 70 for 2010 
76 for 2009 76 for 2008 to reflect the impact of risks and tax effects specific to the individual products the weighted average pretax 
discount rate we used was approximately 14 2009 14 2008 14
significant assets
description
carrying value
m
remaining amortisation 
period
intangible assets arising from joint venture with merck
1
product marketing and distribution rights 186 3 and 7 years
advance payment
1
product marketing and distribution rights 490 8 years
partial retirement
1
product marketing and distribution rights 735 417 years
first option
1
product marketing and distribution rights 1651 113 years
nonrefundable deposit
1
product marketing and distribution rights 474 not amortised
intangible assets arising from the acquisition of cat
2
product marketing and distribution rights 363 5 and 10 years
intangible assets arising from the acquisition of kudos
2
product marketing and distribution rights 285 not amortised
rsv franchise assets arising from the acquisition of medimmune product marketing and distribution rights 4174 15 years
intangible assets arising from the acquisition of medimmune licensing and contractual income 522 19 years
intangible assets arising from the acquisition of medimmune product marketing and distribution rights 603 21 years
intangible assets arising from the collaboration with bms
3
product marketing and distribution rights 419 1213 years
intangible assets arising from the acquisition of novexel
2
product marketing and distribution rights 302 not amortised
intangible assets arising from the collaboration with pozen
4
product marketing and distribution rights 213 13 years
1
 these assets are associated with the restructuring of the joint venture with merck  co inc further information can be found in note 25
2
 assets in development are not amortised but are tested annually for impairment
3
 these assets arise from the collaboration agreement with bms for onglyza
™
 and dapagliflozin
4
 these assets arise from the collaboration agreement with pozen for vimovo astrazeneca annual report and form 20f information 2010 financial statements 157
corporate governance additional information financial statements overview business review
10 other investments
2010
m 
2009
m
2008
m
noncurrent investments
equity securities available for sale 211 184 156
211 184 156
current investments
equity securities and bonds available for sale 355 ––
equity securities held for trading 20 18 51
fixed deposits 1107 1466 54
1482 1484 105
the equity securities and bonds available for sale in current investments of 355m are held in an escrow account further details of this 
escrow account are included in note 18
fixed deposits relate to investments in us treasury bills and commercial paper with a maturity of greater than 90 days at inception
impairment charges of 2m in respect of available for sale securities are included in other operating income and expense in profit 2009 18m 
2008 25m
11 inventories
2010
m 
2009
m
2008
m
raw materials and consumables 539 445 409
inventories in process 665 726 631
finished goods and goods for resale 478 579 596
1682 1750 1636
inventory writeoffs in the year amounted to 69m 2009 83m 2008 51m
12 trade and other receivables
2010
m 
2009
m
2008
m
amounts due within one year
trade receivables 6328 5863 5657
less amounts provided for doubtful debts note 23 81 81 99
6247 5782 5558
other receivables 607 1170 978
prepayments and accrued income 733 580 552
7587 7532 7088
amounts due after more than one year
other receivables 64 27 44
prepayments and accrued income 196 150 129
260 177 173
trade and other receivables 7847 7709 7261
13 cash and cash equivalents
2010
m 
2009
m
2008
m
cash at bank and in hand 1750 1077 1039
shortterm deposits 9318 8841 3247
cash and cash equivalents 11068 9918 4286
unsecured bank overdrafts 87 90 163
cash and cash equivalents in the cash flow statement 10981 9828 4123
the group’s insurance subsidiaries hold cash and cash equivalents totalling 415m 2009 173m 2008 400m of which 370m 2009 49m 
2008 278m is required to meet insurance solvency requirements and which as a result is not readily available for the general purposes 
of the group astrazeneca annual report and form 20f information 2010 158 financial statements
financial statements
14 interestbearing loans and borrowings
repayment
dates
2010
m 
2009
m
2008
m
current liabilities
bank overdrafts on demand 87 90 163
floating rate note us dollars 2009 – – 650
4625 noncallable bond euros 2010 – 1073 –
5625 noncallable bond euros 2010 – 717 –
other loans within one year 38 46 180
125 1926 993
noncurrent liabilities
4625 noncallable bond euros 2010 – – 1053
5625 noncallable bond euros 2010 – – 702
54 callable bond us dollars 2012 1800 1805 1823
54 callable bond us dollars 2014 837 821 789
5125 noncallable bond euros 2015 993 1072 1051
59 callable bond us dollars 2017 1855 1818 1896
7 guaranteed debentures us dollars 2023 359 346 324
575 noncallable bond pounds sterling 2031 535 558 501
645 callable bond us dollars 2037 2718 2717 2716
9097 9137 10855
all loans and borrowings above are unsecured 
15 financial instruments
derivative financial instruments
set out below is a summary of the derivative financial instruments included in the consolidated statement of financial position at 
31 december 2010 31 december 2009 and 31 december 2008
noncurrent 
assets
m
current
assets
m
current
liabilities
m
noncurrent 
liabilities
m
total
m
designated in a fair value hedge 164––– 164
related to instruments designated at fair value through profit or loss 160––– 160
other derivatives –9 8 –1
31 december 2010 324 9 8 – 325
noncurrent 
assets
m
current 
assets
m
current 
liabilities
m
noncurrent 
liabilities
m
total
m
designated in a fair value hedge 135 – – – 135
related to instruments designated at fair value through profit or loss 127 – – – 127
other derivatives  – 24 90 – 66
31 december 2009 262 24 90 – 196
noncurrent 
assets
m
current 
assets
m
current 
liabilities
m
noncurrent 
liabilities
m
total
m
designated in a fair value hedge 229 – – – 229
related to instruments designated at fair value through profit or loss 220 – – – 220
other derivatives  – – 95 71 166
31 december 2008 449 – 95 71 283 astrazeneca annual report and form 20f information 2010 financial statements 159
corporate governance additional information financial statements overview business review
15 financial instruments continued
fair values of financial assets and financial liabilities
set out below is a comparison by category of carrying values and fair values of all the group’s financial assets and financial liabilities at 
31 december 2010 31 december 2009 and 31 december 2008 none of the financial assets or financial liabilities have been reclassified 
during the year
instruments
in a hedge
relationship
1
m
instruments
designated
at fair value
2
m
other financial
instruments
at fair value
3
m
available
for sale
m
held for
trading
m
amortised
cost
m
total
carrying
value
m
fair
value
m
2010
cash and cash equivalents ––––– 11068 11068 11068
overdrafts ––––– 87 87 87
loans due within one year ––––– 38 38 38
loans due after more than one year 1659 1196 – – – 6242 9097 10022
derivative financial instruments 164 160 1––– 325 325
other investments – – – 566 20 1107 1693 1693
other financial assets – – 25 – – 6893 6918 6918
other financial liabilities – – 50 – – 8963 9013 9013
2009
cash and cash equivalents – – – – – 9918 9918 9918
overdrafts ––––– 90 90 90
loans due within one year – – – – – 1836 1836 1867
loans due after more than one year 1629 1167 – – – 6341 9137 9832
derivative financial instruments 135 127 66 – – – 196 196
other investments – – – 184 18 1466 1668 1668
other financial assets – – – – – 6979 6979 6979
other financial liabilities – – – – – 8872 8872 8872
2008
cash and cash equivalents – – – – – 4286 4286 4286
overdrafts ––––– 163 163 163
loans due within one year – – – – – 830 830 830
loans due after more than one year 1727 1113 – – – 8015 10855 11238
derivative financial instruments 229 220 166 – – – 283 283
other investments – – – 156 50 54 260 260
other financial assets – – – – – 6580 6580 6580
other financial liabilities – – – – – 7239 7239 7239
1
 includes borrowings and derivatives designated as hedged items in fair value hedge relationships with respect to interest rate risk
2
 includes borrowings designated at fair value through profit or loss and related derivatives
3
 includes derivatives not designated in hedge relationships or related to financial instruments designated at fair value through profit or loss and contingent consideration arising on business 
combinations note 22
other financial assets represent trade and other receivables note 12 excluding prepayments and accrued income other financial liabilities 
represent trade and other payables note 16 excluding deferred income
credit risk increased the fair value of the bonds designated as fair value through profit or loss by 5m for the year and increased the fair value 
by 40m since designation changes in credit risk had no material effect on any other financial assets and liabilities recognised at fair value in 
the group’s financial statements the change in fair value attributable to changes in credit risk is calculated as the change in fair value not 
attributable to market risk the amount payable at maturity on bonds designated at fair value through profit or loss is 1037m
the methods and assumptions used to estimate the fair values of financial instruments together with their carrying values are as follows
  cash and overdrafts – held on the consolidated statement of financial position at amortised costs fair value approximates to carrying value
  loans due within one year and after more than one year – the fair value of fixedrate publicly traded debt is based on yearend quoted 
market prices the fair value of floating rate debt is nominal value as mark to market differences would be minimal given the frequency of 
resets the carrying value of loans designated at fair value through profit or loss is the fair value for loans designated in a fair value hedge 
relationship carrying value is initially measured at fair value and remeasured for fair value changes in respect of the hedged risk at each 
reporting date all other loans are held at amortised cost
  derivative financial instruments – consists of interest rate swaps included in designated as fair value through profit or loss if related to debt 
designated at fair value or instruments in a hedge relationship as a fair value hedge or other derivatives and forward foreign exchange 
contracts included in other derivatives all derivatives are held at fair value
 – interest rate swaps – the fair value is estimated using appropriate zero coupon curve valuation techniques to discount future contractual 
cash flows based on rates current at year end
 – forward foreign exchange contracts – the majority of contracts for existing transactions had maturities of six months or less from year end 
the fair value of forward foreign exchange contracts is estimated by discounting the future contractual cash flows using appropriate yield 
curves based on market forward foreign exchange rates at the year end
  other investments – held on the consolidated statement of financial position at fair value these include equity securities held on the 
consolidated statement of financial position as other investments note 10 the fair value of listed investments is based on year end 
quoted market prices unlisted investments are held at cost which approximates to fair value 
  other financial assets and other financial liabilities – with the exception of contingent consideration which is held at fair value see note 22 
other financial assets and liabilities are held on the consolidated statement of financial position at amortised costs with carrying value 
being a reasonable approximation of fair value astrazeneca annual report and form 20f information 2010 160 financial statements
financial statements
15 financial instruments continued
the interest rates used to discount future cash flows where applicable are based on market swap curves at the reporting date and were 
as follows
2010 2009 2008
derivatives 07 to 40 20 to 46 38 to 46
loans and borrowings 07 to 40 20 to 46 38 to 46
fair value hierarchy
the table below analyses financial instruments carried at fair value by valuation method the different levels have been defined as follows
  level 1 quoted prices unadjusted in active markets for identical assets or liabilities
  level 2  inputs other than quoted prices included within level 1 that are observable for the asset or liability either directly ie as prices 
or indirectly ie derived from prices
  level 3 inputs for the asset or liability that are not based on observable market data unobservable inputs
level 1
m
level 2
m
level 3
m
total
m
31 december 2010
 
equity securities and bonds available for sale 399 – 167 566
equity securities held for trading 20 – – 20
derivative assets – 333 – 333
other financial assets – – 25 25
assets 419 333 192 944
borrowing designated at fair value through profit or loss 1196 – – 1196
derivative liabilities – 8 – 8
other financial liabilities – – 50 50
liabilities 1196 8 50 1254
31 december 2009
 
equity securities available for sale 41 – 143 184
equity securities held for trading 18 – – 18
derivative assets – 286 – 286
assets 59 286 143 488
borrowing designated at fair value through profit or loss 1167 – – 1167
derivative liabilities – 90 – 90
liabilities 1167 90 – 1257
equity securities available for sale which are analysed at level 3 represent investments in private biotech companies these unlisted investments 
are held at cost adjusted as necessary for impairments which approximates to fair value hence carrying value is adjusted only for additions 
sales and permanent impairment and for no other movement consequently in the current year no change has been made to the fair value 
of individual investments level 3 other financial assets and liabilities arose on the acquisition of novexel and the subsequent transaction with 
forest as detailed in note 22
net gains and losses on financial assets and financial liabilities
2010
m
2009
m
2008
m
included in operating profit
gainslosses on forward foreign exchange contracts 29 114 399
lossesgains on receivables and payables 80 141 391
losses on available for sale current investments 2 18 25
53 45 33
included in finance income and expense
interest and fair value adjustments in respect of debt designated at fair value through profit or loss net of derivatives 5 169 87
interest and changes in carrying values of debt designated as hedged items net of derivatives 18 35 64
interest and fair value changes on fixed and shortterm deposits and equity securities 61 43 140
interest on debt overdrafts and commercial paper held at amortised cost 452 501 609
exchange lossesgains on financial assets and liabilities 11 31 12
425 631 458
included in other comprehensive income
foreign exchange differences on borrowings forming net investment hedges 101 68 291
amortisation of loss on cash flow hedge through profit 1 11
available for sale lossesgains taken to equity 4 22
106 65 294 astrazeneca annual report and form 20f information 2010 financial statements 161
corporate governance additional information financial statements overview business review
15 financial instruments continued
29m fair value gains 2009 95m fair value losses on interest rate fair value hedging instruments and 29m fair value losses 2009 97m fair 
value gains on the related hedged items have been included within interest and changes in carrying values of debt designated as hedged 
items net of derivatives all fair value hedge relationships were effective during the year the accounting treatment for fair value hedges is 
disclosed in the group accounting policies
33m fair value gains 2009 94m fair value losses on derivatives related to debt instruments designated at fair value through profit or loss and 
28m fair value losses 2009 53m fair value losses on debt instruments designated at fair value through profit or loss have been included 
within interest and fair value adjustments in respect of debt designated at fair value through profit or loss net of derivatives the accounting 
treatment for debt designated at fair value through profit or loss is disclosed in the group accounting policies section from page 142 
the amortisation of loss on cash flow hedge through profit included in other comprehensive income relates to a loss on a cash flow hedge 
of a prospective debt issue which was taken directly to reserves in 2007 and is being amortised through profit over the remaining life of the 
underlying debt instrument ineffectiveness on the net investment hedge taken to profit was nil 2009 nil 2008 nil the accounting 
treatment for net investment hedges is disclosed in the group accounting policies section from page 142
16 trade and other payables
2010
m
2009
m
2008
m
current liabilities
trade payables 2257 2316 1940
value added and payroll taxes and social security 323 342 371
rebates and chargebacks 2839 2618 1963
other payables 945 1038 1026
accruals 2297 2373 1878
8661 8687 7178
noncurrent liabilities
other payables 373 244 149
included in other payables are amounts totalling 259m 2009 259m 2008 227m to meet insurance obligations of the group’s insurance 
subsidiaries these amounts are net of intragroup setoff
17 provisions for liabilities and charges
severance
m
environmental
m
employee 
benefits
m
legal
m
other 
provisions
m
total
m
at 1 january 2008 643 111 100 25 141 1020
chargecredit for year 469 37 23 – 164 647
cash paid 405 39 1 – 12 457
exchange and other movements 88 21 8 – 9 68
at 31 december 2008 619 130 84 25 284 1142
charge for year 309 6 12 636 101 1064
cash paid 341 23 – 13 34 411
reversals 89 – – – 28 117
exchange and other movements 13 1 1 – 3 8
at 31 december 2009 511 112 95 648 320 1686
charge for year 497 48 11 617 188 1361
cash paid 335 43 – 709 22 1109
reversals 26 – – 1 22 49
exchange and other movements 122 217 7 49
at 31 december 2010 659 119 127 562 471 1938
2010
m
2009
m
2008
m
due within one year 1095 1209 600
due after more than one year 843 477 542
1938 1686 1142
astrazeneca is undergoing a global restructuring initiative which involves rationalisation of the global supply chain european sales and 
marketing information services and business support infrastructure and research and development employee costs in connection with 
the initiatives are recognised in severance provisions
details of the environmental and legal provisions are provided in note 25
employee benefit provisions include the executive deferred bonus plan further details are included in note 24
other provisions comprise amounts relating to specific legal and constructive obligations and disputes
no provision has been released or applied for any purpose other than that for which it was established astrazeneca annual report and form 20f information 2010 162 financial statements
financial statements
18 postretirement benefits
pensions
background
the company and most of its subsidiaries offer retirement plans which cover the majority of employees in the group many of these plans 
are ‘defined contribution’ where astrazeneca’s contribution and resulting charge is fixed at a set level or is a set percentage of employees’ 
pay however several plans mainly in the uk the us and sweden are ‘defined benefit’ where benefits are based on employees’ length of 
service and average final salary typically averaged over one three or five years the major defined benefit plans apart from the collectively 
bargained swedish plan which is still open to employees born before 1979 have been closed to new entrants since 2000
the major defined benefit plans are funded through legally separate fiduciaryadministered funds the cash funding of the plans which 
may from time to time involve special payments is designed in consultation with independent qualified actuaries to ensure that the assets 
together with future contributions should be sufficient to meet future obligations the funding is monitored rigorously by astrazeneca and 
appropriate fiduciaries specifically with reference to astrazeneca’s credit rating market capitalisation cash flows and the solvency of the 
relevant pension scheme
financing principles
965 of the group’s defined benefit obligations at 31 december 2010 are in schemes within the uk the us sweden or germany in these 
countries the pension obligations are funded with reference to the following financing principles
  the group has a fundamental belief in funding the benefits it promises to employees
  the group considers its pension arrangements in the context of its broader capital structure in general it does not believe in committing 
excessive capital for funding while it has better uses of capital within the business nor does it wish to generate surpluses
  the pension funds are not part of the group’s core business the group believes in taking some rewarded risks with the investments 
underlying the funding subject to a medium to longterm plan to reduce those risks if opportunities arise
  the group recognises that deciding to hold certain investments may cause volatility in the funding position the group would not wish 
to amend its contribution level for relatively small deviations from its preferred funding level because it is expected that there will be short
term volatility but it is prepared to react appropriately to more significant deviations 
  in the event that local regulations require an additional level of financing the group would consider the use of alternative methods of providing 
this that do not require immediate cash funding but help mitigate exposure of the pension arrangement to the credit risk of the group
these principles are appropriate to astrazeneca’s business at the present date should circumstances change they may require review
astrazeneca has developed a funding framework to implement these principles this determines the cash contributions payable to the 
pension funds but does not affect the ias 19 liabilities to reduce the risk of committing excess capital to pension funds liability valuations 
are based on the expected return on the actual pension assets rather than a corporate bond yield at present this puts a different value on 
the liabilities than ias 19
uk
with regard to the group’s uk defined benefit fund the above principles are modified in light of the uk regulatory requirements and resulting 
discussions with the pension fund trustee the most recent full actuarial valuation was carried out at 31 march 2008 
under the agreed funding principles for the uk cash contributions will be paid to the fund to target a level of assets in excess of the current 
expected cost of providing benefits in addition astrazeneca will make contributions to an escrow account which will be held outside of the 
pension fund the escrow account assets will be payable to the fund in agreed circumstances for example in the event of astrazeneca and 
trustee agreeing on a change to the current long term investment strategy 
the market value of the fund’s assets at the valuation date was £2994m 5951m equivalent representing 87 of the fund’s actuarially assessed 
liabilities as valued in accordance with the fund’s technical provisions the escrow fund held an additional £33m 65m at the valuation date 
during 2009 it was agreed to fund the shortfall by making a transfer of current escrow assets to the fund and by establishing a new funding 
schedule making regular payments over seven years in the region of £42m per annum to the escrow and £132m per annum to the fund this 
includes the contributions required to meet the benefits accruing in the region of £60m per annum in addition £90m per annum is being paid 
to the escrow for two years until the next valuation to cover the losses on the fund’s investments since the valuation date as a result of the 
market downturn at 31 december 2010 £230m 355m escrow fund assets are included within other investments see note 10
under the agreed funding principles the key assumptions as at 31 march 2008 for contributions to both the fund and escrow account are 
as follows longterm uk price inflation set at 35 per annum salary increases at 35 per annum pension increases at 35 per annum 
and investment returns at 71 per annum preretirement and 596 per annum postretirement
during the first half of 2010 astrazeneca consulted with its uk employees’ representatives on proposals to freeze pensionable pay at 
30 june 2010 levels for defined benefit members of the uk pension fund the defined benefit fund remains open to existing members and 
employees who choose to leave the defined benefit fund will retain a deferred pension in addition to being offered membership in a new 
group self invested personal pension plan 
the amendment to the uk defined benefit fund to freeze pensionable pay at 30 june 2010 levels represents an accounting curtailment of 
certain pension obligations the majority of members opted to remain in the defined benefit fund and continue benefit accrual with frozen 
pensionable pay in accordance with ias 19 the scheme obligations were revalued by the scheme actuaries immediately prior to the change 
and assumptions reviewed at that date the resulting credit of 693m has been recognised in comprehensive income during the year
in july 2010 the uk government announced changes to the inflation index used for statutory pension increases both for pensions in payment 
and pensions in deferment to apply to private sector pension schemes this has resulted in a small actuarial gain during the period in respect 
of the astrazeneca pension fund astrazeneca annual report and form 20f information 2010 financial statements 163
corporate governance additional information financial statements overview business review
18 postretirement benefits continued
rest of group
the ias 19 positions as at 31 december 2010 are shown below for each of the other countries with significant defined benefit plans these 
plans account for 90 of the group’s defined benefit obligations outside of the uk these plans are funded in line with the financing principles 
and contributions paid as prescribed by the funding framework
  the us defined benefits programme was actuarially revalued at 31 december 2010 when plan obligations were 1757m and plan assets 
were 1525m this includes obligations in respect of the nonqualified plan which is largely unfunded
  the swedish defined benefits programme was actuarially revalued at 31 december 2010 when plan obligations were estimated to amount 
to 1338m and plan assets were 809m
  the german defined benefits programme was actuarially revalued at 31 december 2010 when plan obligations amounted to 241m and 
plan assets were 25m 
on current bases it is expected that contributions excluding those in respect of past service cost during the year ended 31 december 2011 
to the four main countries will be 342m
postretirement benefits other than pensions
in the us and to a lesser extent in certain other countries astrazeneca’s employment practices include the provision of healthcare and life 
assurance benefits for retired employees as at 31 december 2010 some 3973 retired employees and covered dependants currently benefit 
from these provisions and some 11267 current employees will be eligible on their retirement astrazeneca accrues for the present value of 
such retiree obligations over the working life of the employee in practice these benefits will be funded with reference to the financing principles
the cost of postretirement benefits other than pensions for the group in 2010 was 18m 2009 19m 2008 21m plan assets were 272m 
and plan obligations were 310m at 31 december 2010 these benefit plans have been included in the disclosure of postretirement benefits 
under ias 19
financial assumptions
qualified independent actuaries have updated the actuarial valuations under ias 19 of the major defined benefit schemes operated by the 
group to 31 december 2010 the assumptions used by the actuaries are chosen from a range of possible actuarial assumptions which due 
to the longterm nature of the scheme may not necessarily be borne out in practice these assumptions were as follows
2010 2009
uk rest of group uk rest of group
inflation assumption 36 23 35 23
rate of increase in salaries –
1
34 45 34
rate of increase in pensions in payment 35 09 35 09
discount rate 55 49 55 50
longterm rate of return expected at 31 december
equities 80 79 80 81
bonds 51 50 55 52
others 61 47 65 48
rate of increase in medical costs initial rate 100 100 100 100
1
 pensionable pay frozen at 30 june 2010 levels following uk fund changes
the expected return on assets is determined with reference to the expected longterm level of dividends interest and other returns derived 
from the plan assets together with realised and unrealised gains or losses on the plan assets less any costs of administering the plan less 
any tax payable by the plan the expected returns are based on longterm market expectations and analysed on a regular basis to ensure 
that any sustained movements in underlying markets are reflected
demographic assumptions
the mortality assumptions are based on countryspecific mortality tables these are compared to actual astrazeneca experience and 
adjusted where sufficient data is available additional allowance for future improvements in life expectancy is included for all major schemes 
where there is credible data to support this continuing trend
the table below illustrates life expectancy assumptions at age 65 for male members retiring in 2010 and members expected to retire in 2030
life expectancy assumption for a male member retiring at age 65
country 2010 2030 2009 2029
uk 227 246 238 258
us 198 213 196 211
sweden 204 224 204 224
germany 179 207 177 205 astrazeneca annual report and form 20f information 2010 164 financial statements
financial statements
18 postretirement benefits continued
postretirement scheme deficit
the assets and obligations of the defined benefit schemes operated by the group at 31 december 2010 as calculated in accordance with 
ias 19 ‘employee benefits’ are shown below the fair values of the schemes’ assets are not intended to be realised in the short term and may 
be subject to significant change before they are realised the present value of the schemes’ obligations is derived from cash flow projections 
over long periods and is therefore inherently uncertain
2010 2009
uk
m
rest of group
m
total
m
uk
m
rest of group
m
total
m
scheme assets
equities 2437 1153 3590 2309 1241 3550 
bonds 2660 1124 3784 2279 903 3182
others 52 341 393 265 258 523
total fair value of scheme assets 5149 2618 7767 4853 2402 7255
present value of scheme obligations 6554 3691 10245 7055 3591 10646 
past service cost not yet recognised –66 – 37 37 
deficit in the scheme as recognised  
in the statement of financial position 1405 1067 2472 2202 1152 3354 
fair value of scheme assets
2010 2009
uk
m
rest of group
m
total
m
uk
m
rest of group
m
total
m
at beginning of year 4853 2402 7255 3835 2013 5848 
expected return on scheme assets 305 146 451 261 127 388
expenses 7 – 7 6 – 6
actuarial gainslosses 244 4 240 293 180 473
exchange 204 4 208 430 17 447
employer contributions 224 245 469 304 262 566
participant contributions 28 3 31 31 3 34
benefits paid 294 170 464 295 200 495
scheme assets fair value at end of year 5149 2618 7767 4853 2402 7255
the actual return on the plan assets was a gain of 691m 2009 gain of 861m
movement in postretirement scheme obligations
2010 2009
uk
m
rest of group
m
total
m
uk
m
rest of group
m
total
m
present value of obligation in scheme at beginning of year 7055 3591 10646 5029 3591 8620 
current service cost 97 114 211 96 126 222
past service costcredit 39 106 67 53 21 74
participant contributions 28 3 31 31 3 34
benefits paid 294 170 464 295 200 495
other finance expense 371 172 543 330 163 493
expenses 7 –7 6 – 6
actuarial lossgain 221 65 286 1218 176 1042
settlements and curtailments 693 6 699 – – –
exchange 263 28 235 599 63 662
present value of obligations in scheme at end of year 6554 3691 10245 7055 3591 10646
the obligation arises from the following plans
2010 2009
uk
m
rest of group
m
uk
m
rest of group
m
funded 6526 3232 7026 3159 
unfunded 28 459 29 432
total 6554 3691 7055 3591 astrazeneca annual report and form 20f information 2010 financial statements 165
corporate governance additional information financial statements overview business review
18 postretirement benefits continued
consolidated statement of comprehensive income disclosures
the amounts that have been charged to the consolidated statement of comprehensive income in respect of defined benefit schemes for 
the year ended 31 december 2010 are set out below
2010 2009
uk
m
rest of group
m
total
m
uk
m
rest of group
m
total
m
operating profit
current service cost 97 114 211 96 126 222
past service costcredit 39 75 36 53 24 77
settlements and curtailments 693 6 699 – –  –
total charge to operating profit 557 33 524 149 150 299
finance expense
expected return on postretirement scheme assets 305 146 451 261 127 388
interest on postretirement scheme obligations 371 172 543 330 163 493
net return 66 26 92 69 36 105
charge before taxation 491 59 432 218 186 404
other comprehensive income
difference between the actual return and the expected 
return on the postretirement scheme assets 244 4 240 293 180 473
experience lossesgains arising on the postretirement 
scheme obligations 81 5 76 105 67 38
changes in assumptions underlying the present value 
of the postretirement scheme obligations 140 70 210 1323 243 1080
actuarial gainslosses recognised 23 69 46 925 356 569
included in total assets and obligations for the uk is 424m in respect of members’ defined contribution sections of the scheme costs in 
respect of the defined contribution sections of the scheme during the year were 228m 2009 234m
actuarial gains and losses
2010 2009 2008 2007 2006
uk
present value of obligations m 6554 7055 5029 7644 7352
fair value of scheme assets m 5149 4853 3835 6310 6078
deficit in the scheme m 1405 2202 1194 1334 1274
experience adjustments on
scheme assets
amount m 244 293 1185 185 259
percentage of scheme assets 47 60 309 29 43
scheme obligations
amount m 221 1218 972 114 71
percentage of scheme obligations 34 173 193 15 10
rest of group
present value of obligations m 3691 3591 3591 3348 3109
fair value of scheme assets m 2618 2402 2013 2644 2493
deficit in the scheme m 1073 1189 1578 704 616
experience adjustments on
scheme assets
amount m 4 180 700 24 55
percentage of scheme assets 02 75 348 09 22
scheme obligations
amount m 65 176 319 18 25
percentage of scheme obligations 18 49 89 05 08
total
present value of obligations m 10245 10646 8620 10992 10461
fair value of scheme assets m 7767 7255 5848 8954 8571
deficit in the scheme m 2478 3391 2772 2038 1890
experience adjustments on
scheme assets
amount m 240 473 1885 209 204
percentage of scheme assets 31 65 322 23 24
scheme obligations
amount m 286 1042 653 96 96
percentage of scheme obligations 28 98 7 6 09 09 astrazeneca annual report and form 20f information 2010 166 financial statements
financial statements
18 postretirement benefits continued
transactions with pension schemes
during the year the group made loans to the uk and swedish pension schemes to enable these schemes to manage their shortterm liquidity 
requirements the maximum balance outstanding in the year was 5m and the amount outstanding at 31 december 2010 was 5m
reserves
included within the retained earnings reserve is the actuarial reserve movements on this reserve are as follows
2010
m
2009
m
2008
m
at 1 january 1800 1371 479
actuarial losses 46 569 1232
deferred tax 19 140 340
at 31 december 1865 1800 1371
the cumulative amount of actuarial losses before deferred tax recognised in other comprehensive income is 2482m 2009 2436m 
2008 1867m
discount rate sensitivity
the following table shows the us dollar effect of a 1 change in the discount rate on the retirement benefits obligations in our four main 
defined pension obligation benefit countries
2010 2009
1 –1 1 –1
uk m 937 1093 973 1129
us m 203 232 225 256
sweden m 222 293 192 229
germany m 37 44 35 42
total m 1399 1662 1425 1656
sensitivity of medical cost assumptions
effect of change in medical cost assumption increasedecrease
2010 2009
1 –1 1 –1
current service and interest cost of net periodic postemployment medical costs m 4 3 4 3
accumulated postemployment benefit obligation for medical costs m 10 11 32 28
19 capital and reserves
2010
m
2009
m
2008
m
cumulative translation differences included within retained earnings
balance at beginning of year 1656 1323 2414
foreign exchange arising on consolidation 26 388 1355
exchange adjustments on goodwill recorded against other reserves 15 13 27
foreign exchange differences on borrowings forming net investment hedges 101 68 291
net exchange movement in retained earnings 142 333 1091
balance at end of year 1798 1656 1323
other reserves
the other reserves arose from the cancellation of £1255m of share premium account by the company in 1993 and the redenomination of 
share capital 157m in 1999 the reserves are available for writing off goodwill arising on consolidation and subject to guarantees given to 
preserve creditors at the date of the court order are available for distribution
retained earnings
the cumulative amount of goodwill written off directly to reserves resulting from acquisitions net of disposals amounted to 682m 2009 667m 
2008 654m using year end rates of exchange at 31 december 2010 57717 shares at a cost of 3m have been deducted from retained 
earnings 2009 24178 shares at a cost of 1m 2008 nil shares at a cost of nil
there are no significant statutory or contractual restrictions on the distribution of current profits of subsidiaries joint ventures or associates 
undistributed profits of prior years are in the main permanently employed in the businesses of these companies the undistributed income 
of astrazeneca companies overseas might be liable to overseas taxes andor uk taxation after allowing for double taxation relief if they were 
to be distributed as dividends see note 4 astrazeneca annual report and form 20f information 2010 financial statements 167
corporate governance additional information financial statements overview business review
20 share capital of the company
allotted calledup and fully paid
2010
m
2009
m
2008
m
issued ordinary shares 025 each 352 363 362
redeemable preference shares £1 each – £50000 – – –
352 363 362 
at 31 december 2010 1409023452 ordinary shares were in issue
the redeemable preference shares carry limited class voting rights and no dividend rights this class of shares is capable of redemption at 
par at the option of the company on the giving of seven days’ written notice to the registered holder of the shares
the movements in the number of ordinary shares during the year can be summarised as follows
no of shares million
2010 2009
at 1 january 1451 1447
issues of shares 12 4
repurchase of shares 54 – 
at 31 december 1409 1451 
share repurchases
during the year the company repurchased 53691507 ordinary shares at an average price of 31 1 1 pence per share 2009 nil 2008 13597 940 
ordinary shares at an average price of 2397 pence per share
share schemes
a total of 1 1756397 ordinary shares were issued during the year in respect of share schemes 2009 3477 014 ordinary shares 2008 4078635 
ordinary shares details of movements in the number of ordinary shares under option are shown in note 24 details of options granted to 
directors are shown in the directors’ remuneration report from page 119
shares held by subsidiaries
no shares in the company were held by subsidiaries in any year 
21 dividends to shareholders
2010
per share
2009
per share
2008
per share
2010
m
2009
m
2008
m
final 1710 1500 1350 2484 2171 1967
interim 0700 0590 0550 1010 855 800
2410 2090 1900 3494 3026 2767
the second interim dividend to be confirmed as final is 185 per ordinary share and 2607m in total this will be payable on 14 march 2011 
on payment of the dividends exchange gains of 19m 2009 gains of 17m 2008 gains of 28m arose these exchange gains are included 
in note 3
22 acquisitions of business operations
novexel
on 3 march 2010 astrazeneca completed the acquisition of novexel sa novexel is a research company focused on the infection therapy 
area and is based in france this acquisition strengthens our research capabilities in the infection therapy area astrazeneca acquired one 
hundred percent of novexel’s shares for an upfront consideration of 427m additional consideration of up to 75m will become payable to 
novexel shareholders on the completion of certain development milestones at both the date of acquisition and at 31 december 2010 the 
fair value of this contingent consideration was 50m for both the period since acquisition and the full year novexel had no revenues and its 
loss was immaterial
book value
m
fair value
adjustment
m
fair value
m
noncurrent assets 1 548 549 
current assets 89 – 89 
current liabilities 18 – 18
noncurrent liabilities 85 58 143
total assets acquired 13 490 477 
goodwill –
fair value of total consideration 477 
less fair value of contingent consideration 50
total upfront consideration  427  astrazeneca annual report and form 20f information 2010 168 financial statements
financial statements
22 acquisitions of business operations continued
subsequent to the completion of the acquisition of novexel astrazeneca entered into a collaboration with forest on the future codevelopment 
and commercialisation of two latestage antibiotic development programmes acquired with novexel ceftazidimenxl 104 caz104 and 
ceftarolinenxl 104 cef104 these antibiotic combinations utilise novexel’s novel investigational betalactamase inhibitor nxl 104 to 
overcome antibiotic resistance and treat the increasing number of infections resistant to existing therapies in addition forest acquired rights to 
caz104 in north america and bought down payment obligations to novexel in relation to cef104 from previous existing licence arrangements 
in consideration for these rights forest paid novexel then an astrazeneca group company a sum of 210m on 3 march 2010 and will also 
pay additional sums equivalent to half of any future specified development milestone payments that become payable by astrazeneca this 
consideration is equivalent to the fair value attributed on acquisition to those assets and hence there is no profit impact from this divestment
cash flows
m
total upfront consideration 427
cash and cash equivalents included in undertaking acquired 79
net cash consideration 348
prior period aquisitions
there were no acquisitions made during either the year ended 31 december 2009 or the year ended 31 december 2008
23 financial risk management objectives and policies
the group’s principal financial instruments other than derivatives comprise bank overdrafts loans current and noncurrent investments 
cash and shortterm deposits the main purpose of these financial instruments is to manage the group’s funding and liquidity requirements 
the group has other financial assets and liabilities such as trade receivables and trade payables which arise directly from its operations 
the principal financial risks to which the group is exposed are those of liquidity interest rate foreign currency and credit each of these is 
managed in accordance with boardapproved policies these policies are set out below
the group uses foreign currency borrowings foreign currency forwards and options interest rate swaps and forward rate agreements for 
the purpose of hedging its foreign currency and interest rate risks the group may designate certain financial instruments as either fair value 
hedges or net investment hedges in accordance with ias 39 key controls applied to transactions in derivative financial instruments are to 
use only instruments where good market liquidity exists to revalue all financial instruments regularly using current market rates and to sell 
options only to offset previously purchased options the group does not use derivative financial instruments for speculative purposes
capital management
the capital structure of the group consists of shareholders’ equity note 20 debt note 14 and cash note 13 for the foreseeable future 
the board will maintain a capital structure that supports the group’s strategic objectives through
  managing funding and liquidity risk
  optimising shareholder return
  maintaining a strong investmentgrade credit rating
funding and liquidity risk are reviewed regularly by the board and managed in accordance with policies described below
the board’s distribution policy comprises both a regular cash dividend and subject to business needs a share repurchase component 
the board regularly reviews its shareholders’ return strategy and in 2010 adopted a progressive dividend policy whereby the board intends 
to maintain or grow the dividend each year targeting an average dividend cover of two times ie a payout ratio of 50 based on reported 
earnings before restructuring costs in addition after providing for business investment funding the progressive dividend policy and meeting 
debt service obligations the board will regularly assess the opportunity to return cash in excess of these requirements to shareholders through 
share repurchases
the group’s net funds position loans and borrowings net of cash and cash equivalents current investments and derivative financial instruments 
has increased from 535m at the beginning of the year to a net funds position of 3653m at 31 december 2010 as a result of strong net operating 
cash inflows 
liquidity risk
the board reviews the group’s ongoing liquidity risks annually as part of the planning process and on an ad hoc basis the board considers 
shortterm requirements against available sources of funding taking into account forecast cash flows the group manages liquidity risk by 
maintaining access to a number of sources of funding which are sufficient to meet anticipated funding requirements specifically the group 
uses us commercial paper committed bank facilities and cash resources to manage shortterm liquidity and manages longterm liquidity 
by raising funds through the capital markets the group’s current longterm credit rating is a1 by moody’s and aa by standard and poor’s 
both with a stable outlook astrazeneca annual report and form 20f information 2010 financial statements 169
corporate governance additional information financial statements overview business review
23 financial risk management objectives and policies continued 
in addition to cash and cash equivalents of 11068m fixed deposits of 1107m less overdrafts of 87m at 31 december 2010 the group 
has committed bank facilities of 425bn available to manage liquidity at 31 december 2010 the group has issued 1528m under a euro 
medium term note programme and 7569m under a secregistered programme the group regularly monitors the credit standing of the 
banking group and currently does not anticipate any issue with drawing on the committed facilities should this be necessary the committed 
facilities consist of 36bn maturing in october 2012 and 065bn maturing between october and december 2011 and were undrawn at 
31 december 2010
the maturity profile of the anticipated future contractual cash flows including interest in relation to the group’s financial liabilities on an 
undiscounted basis and which therefore differs from both the carrying value and fair value is as follows
bank
overdrafts
and other
loans
m
bonds
m
trade
and other
payables
m
total
nonderivative
financial
instruments
m
interest
rate swaps
m
currency
swaps
m
total
derivative
financial
instruments
m
total
m
within one year 128 518 8640 9286 120 – 120 9166
in one to two years – 2268 373 2641 121 – 121 2520
in two to three years – 423 – 423 87 – 87 336
in three to four years – 1153 – 1153 69 – 69 1084
in four to five years – 1379 – 1379 50 – 50 1329
in more than five years – 10095 – 10095 192 – 192 9903
128 15836 9013 24977 639 – 639 24338
effect of interest 3 7012 – 7015 639 – 639 6376
effect of discounting fair values and issue costs – 273 – 273 324 – 324 51
31 december 2010 125 9097 9013 18235 324 – 324 17911
bank
overdrafts
and other
loans
m
bonds
m
trade
and other
payables
m
total
nonderivative
financial
instruments
m
interest
rate swaps
m
currency
swaps
m
total
derivative
financial
instruments
m
total
m
within one year 139 2373 8687 11199 117 89 28 11171
in one to two years – 523 185 708 117 – 117 591
in two to three years – 2246 – 2246 116 – 116 2130
in three to four years – 429 – 429 86 – 86 343
in four to five years – 405 – 405 64 – 64 341
in more than five years – 12209 – 12209 239 – 239 11970
139 18185 8872 27196 739 89 650 26546
effect of interest 3 7467 – 7470 739 – 739 6731
effect of discounting fair values and issue costs – 209 – 209 262 1 261 52
31 december 2009 136 10927 8872 19935 262 90 172 19763
bank
overdrafts
and other
loans
m
bonds
m
trade
and other
payables
m
total
nonderivative
financial
instruments
m
interest
rate swaps
m
currency
swaps
m
total
derivative
financial
instruments
m
total
m
within one year 345 1271 7178 8794 60 – 60 8734
in one to two years – 2335 61 2396 60 66 6 2402
in two to three years – 465 – 465 59 – 59 406
in three to four years – 2241 – 2241 59 – 59 2182
in four to five years – 424 – 424 46 – 46 378
in more than five years – 12478 – 12478 163 – 163 12315
345 19214 7239 26798 447 66 381 26417
effect of interest 2 7956 – 7958 447 – 447 7511
effect of discounting fair values and issue costs – 247 – 247 449 5 444 197
31 december 2008 343 11505 7239 19087 449 71 378 18709
where interest payments are on a floating rate basis it is assumed that rates will remain unchanged from the last business day of each year 
ended 31 december
it is not expected that the cash flows in the maturity profile could occur significantly earlier or at significantly different amounts
market risk
interest rate risk
the group maintains a mix of fixed and floating rate debt the portion of fixed rate debt was approved by the board and any variation requires 
board approval a significant portion of the longterm debt entered into in 2007 in order to finance the acquisition of medimmune has been 
held at fixed rates of interest the group uses interest rate swaps and forward rate agreements to manage this mix astrazeneca annual report and form 20f information 2010 170 financial statements
financial statements
23 financial risk management objectives and policies continued
at 31 december 2010 the group held interest rate swaps with a notional value of 25bn converting the 54 callable bond maturing in 
2014 and the 7 guaranteed debentures payable in 2023 to floating rates and partially converting the 54 callable bond maturing in 2012 
and the 59 callable bond maturing in 2017 to floating rates no new interest rate swaps were entered into during 2010 at 31 december 
2010 swaps with a notional value of 15bn were designated as fair value hedges and swaps with a notional value of 10bn related to debt 
designated as fair value through profit or loss designated hedges are expected to be effective and therefore the impact of ineffectiveness 
on profit is not expected to be material the accounting treatment for fair value hedges and debt designated as fair value through profit or 
loss is disclosed in the group accounting policies section from page 142
the majority of the group’s cash balances are held with third party fund managers with floating rates of interest being earned
the interest rate profile of the group’s interestbearing financial instruments as at 31 december 2010 31 december 2009 and 31 december 
2008 is set out below in the case of noncurrent financial liabilities the classification includes the impact of interest rate swaps which convert 
the debt to floating rate
2010 2009 2008
total
m
fixed rate
m
floating rate
m
total
m
fixed rate
m
floating rate
m
total
m
fixed rate
m
floating rate
m
financial liabilities
interestbearing loans and borrowings
current 125 – 125 1926 1790 136 993 – 993
noncurrent 9097 6242 2855 9137 6340 2797 10855 8015 2840
9222 6242 2980 11063 8130 2933 11848 8015 3833
financial assets
fixed deposits 1107 – 1107 1466 – 1466 54 – 54
cash and cash equivalents 11068 – 11068 9918 – 9918 4286 – 4286
12175 – 12175 11384 – 11384 4340 – 4340
in addition to the financial assets above there are 7 829m 2009 7 376m 2008 7 070m of other current and noncurrent asset investments 
and other financial assets on which no interest is received 
foreign currency risk
the us dollar is the group’s most significant currency as a consequence the group results are presented in us dollars and exposures are 
managed against us dollars accordingly
translational
approximately 58 of group external sales in 2010 were denominated in currencies other than the us dollar while a significant proportion 
of manufacturing and research and development costs were denominated in pounds sterling and swedish krona surplus cash generated 
by business units is substantially converted to and held centrally in us dollars as a result operating profit and total cash flow in us dollars 
will be affected by movements in exchange rates
this currency exposure is managed centrally based on forecast cash flows for the currencies of swedish krona sek pounds sterling gbp 
euro eur australian dollar aud canadian dollar cad and japanese yen jpy the impact of movements in exchange rates is mitigated 
significantly by the correlations which exist between the major currencies to which the group is exposed and the us dollar monitoring of 
currency exposures and correlations is undertaken on a regular basis and hedging is subject to preexecution approval 
where there is nonus dollar debt and an underlying net investment of that amount in the same currency the group applies net investment 
hedging as at 31 december 2010 58 of interestbearing loans and borrowings were denominated in pounds sterling and 108 of 
interestbearing loans and borrowings were denominated in euros exchange differences on the retranslation of debt designated as net 
investment hedges are recognised in other comprehensive income to the extent that the hedge is effective any ineffectiveness is taken 
to profit exchange differences on foreign currency borrowings not designated in a hedge relationship are taken to profit
transactional
one hundred percent of the group’s major transactional currency exposures on working capital balances which typically extend for up to 
three months are hedged where practicable using forward foreign exchange contracts against individual group companies’ reporting currency 
in addition the group’s external dividend which is paid principally in pounds sterling and swedish krona is fully hedged from announcement 
to payment date foreign exchange gains and losses on forward contracts transacted for transactional hedging are taken to profit astrazeneca annual report and form 20f information 2010 financial statements 171
corporate governance additional information financial statements overview business review
23 financial risk management objectives and policies continued
the table below sets out the principal foreign exchange contracts outstanding at 31 december 2010 31 december 2009 and 31 december 
2008 along with the underlying gross exposure as defined above 
2010
gbp
1
 
m
sek
m
eur
m
aud
m 
jpy
m
cad
m
gross exposure 732 806 478 117 133 33
forward exchange contracts 38 806 478 117 133 33
net exposure 694–––––
2009
gross exposure 124 811 556 75 197 43
forward exchange contracts 124 811 556 75 197 43
net exposure ––––––
2008
gross exposure 676 444 505 57 166 49
forward exchange contracts 690 445 512 52 166 24
net exposure 14 1 7 5 – 25
1
 the sterling hedge position was updated in early january 2011
sensitivity analysis 
the sensitivity analysis set out below summarises the sensitivity of the market value of our financial instruments to hypothetical changes in 
market rates and prices the range of variables chosen for the sensitivity analysis reflects our view of changes which are reasonably possible 
over a oneyear period market values are the present value of future cash flows based on market rates and prices at the valuation date 
for longterm debt an increase in interest rates results in a decline in the fair value of debt
the sensitivity analysis assumes an instantaneous 100 basis point change in interest rates in all currencies from their levels at 31 december 
2010 with all other variables held constant based on the composition of our longterm debt portfolio as at 31 december 2010 a 1 increase 
in interest rates would result in an additional 30m in interest expense being incurred per year the exchange rate sensitivity analysis assumes 
an instantaneous 10 change in foreign currency exchange rates from their levels at 31 december 2010 with all other variables held constant 
the 10 case assumes a 10 strengthening of the us dollar against all other currencies and the 10 case assumes a 10 weakening 
of the us dollar
each incremental 10 movement in foreign currency exchange rates would have approximately the same effect as the initial 10 detailed 
in the table below
31 december 2010
interest rates exchange rates
1 1 10 10
increasedecrease in fair value of financial instruments 595 684 36 36
impact on profit gainloss – – 133 133
impact on equity gainloss – – 169 169
31 december 2009
interest rates exchange rates
1 1 10 10
increasedecrease in fair value of financial instruments 602 709 137 137
impact on profit gainloss – – 134 134
impact on equity gainloss – – 271 271
31 december 2008
interest rates exchange rates
1 1 10 10
increasedecrease in fair value of financial instruments 587 706 217 217
impact on profit gainloss – – 57 57
impact on equity gainloss – – 274 274
there has been no change in the methods and assumptions used in preparing the above sensitivity analysis over the threeyear period
credit risk
the group is exposed to credit risk on financial assets such as cash balances including fixed deposits and cash and cash equivalents 
derivative instruments trade and other receivables the group is also exposed in its net asset position to its own credit risk in respect of 
the 2023 debentures and 2014 bonds which are accounted for at fair value through profit and loss astrazeneca annual report and form 20f information 2010 172 financial statements
financial statements
23 financial risk management objectives and policies continued
trade and other receivables
trade receivable exposures are managed locally in the operating units where they arise and credit limits are set as deemed appropriate for 
the customer the group is exposed to customers ranging from governmentbacked agencies and large private wholesalers to privately owned 
pharmacies and the underlying local economic and sovereign risks vary throughout the world where appropriate the group endeavours 
to minimise risks by the use of trade finance instruments such as letters of credit and insurance the group establishes an allowance for 
impairment that represents its estimate of incurred losses in respect of specific trade and other receivables where it is deemed that a receivable 
may not be recoverable when the debt is deemed irrecoverable the allowance account is written off against the underlying receivable 
the maximum exposure to credit risk for trade receivables at the reporting date by geographic region was
2010
m
2009
m
2008
m
us 2168 2229 2032
uk 530 482 459
sweden 285 245 226
euro zone countries 878 762 833
other european countries 290 295 257
japan 1091 950 955
other countries 1005 819 796
6247 5782 5558
in the us sales to three wholesalers accounted for approximately 73 of us sales 2009 three wholesalers accounted for approximately 81 
2008 three wholesalers accounted for approximately 81
the ageing of trade receivables at the reporting date was 
2010
m
2009
m
2008
m
not past due 5953 5542 5262
overdue but renegotiated – –3
past due 090 days 104 65 106
past due 90180 days 67 75 60
past due  180 days 123 100 127
6247 5782 5558
2010
m
2009
m
2008
m
movements in provisions for trade receivables
balance at beginning of year 81 99 89
income statement creditcharge 1 20 23
amounts utilised exchange and other movements 1 2 13
balance at end of year 81 81 99
the allowance for impairment has been calculated based on past experience and is in relation to specific customers given the profile of our 
customers including large wholesalers and governmentbacked agencies no further credit risk has been identified with the trade receivables 
not past due other than those balances for which an allowance has been made
other financial assets
the group may hold significant cash balances as part of its normal operations with the amount of cash held at any point reflecting the level 
of cash flow generated by the business and the timing of the use of that cash the majority of excess cash is centralised within the group 
treasury entity and is subject to counterparty risk on the principal invested this risk is mitigated through a policy of prioritising security and 
liquidity over return and as such cash is only invested in high credit quality investments counterparty limits are set according to the assessed 
risk of each counterparty and exposures are monitored against these limits on a regular basis the majority of the group’s cash is invested 
in aaarated liquidity funds us treasury bills and shortterm bank deposits
the most significant concentration of financial credit risk at 31 december 2010 was 8721m invested in three aaarated liquidity funds and 
949m invested in us treasury bills the liquidity fund portfolios are managed by the related external third party fund managers to maintain 
the aaa rating no more than 10 of fund value is invested within each individual fund us treasury bills bear credit exposure to the us 
government there were no other significant concentrations of financial credit risk at the reporting date 
all financial derivatives are transacted with commercial banks in line with standard market practice the group has agreements with some 
bank counterparties whereby the parties agree to post cash collateral for the benefit of the other equivalent to the market valuation of the 
derivative positions above a predetermined threshold the carrying value of such cash collateral held by the group at 31 december 2010 
was 13m 
the carrying amount of financial assets being cash and cash equivalents derivative assets other investments and other receivables 
represents the maximum credit exposure astrazeneca annual report and form 20f information 2010 financial statements 173
corporate governance additional information financial statements overview business review
24 employee costs and share option plans for employees
employee costs
the average number of people to the nearest hundred employed by the group is set out in the table below in accordance with the companies 
act 2006 this includes parttime employees
2010 2009 2008
employees
uk 10100 10600 11000
continental europe 20100 21200 23100
the americas 18300 19800 20900
asia africa  australasia 13200 12300 11100
continuing operations 61700 63900 66100
geographical distribution described in the table above is by location of legal entity employing staff certain staff will spend some or all of 
their activity in a different location
the number of people employed by the group at the end of 2010 was 61100 2009 62700 2008 65000
the costs incurred during the year in respect of these employees were
2010
m
2009
m
2008
m
salaries 4837 4713 5080
social security costs 693 644 743
pension costs 501
1
516 497
other employment costs 408 560 596
6439 6433 6916
1
 pension costs excludes gains of 791m arising from changes made to benefits under certain of the group’s postretirement benefit plans
severance costs of 531m are not included above 2009 285m 2008 546m
the directors believe that together with the basic salary system the group’s employee incentive schemes provide competitive and market
related packages to motivate employees they should also align the interests of employees with those of shareholders as a whole through 
longterm share ownership in the company the group’s current uk swedish and us schemes are described below other arrangements 
apply elsewhere
bonus plans
the astrazeneca uk performance bonus plan
employees of participating astrazeneca uk companies are invited to participate in this bonus plan which rewards strong individual performance 
bonuses in respect of performance during 2010 will be paid in cash bonuses in respect of 2009 and earlier years were paid partly in the 
form of ordinary shares in the company under the hm revenue  customs hmrcapproved astrazeneca allemployee share plan and 
up to a maximum annual value of £3000 and partly in cash a taxefficient share retention scheme under which employees leave their bonus 
shares in trust forms part of the allemployee share plan the company also offers uk employees the opportunity to buy partnership shares 
ordinary shares under the allemployee share plan employees may invest up to £1500 over a 12month accumulation period and purchase 
partnership shares in the company with the total proceeds at the end of the period the purchase price for the shares is the lower of the 
price at the beginning or the end of the 12month period a taxefficient share retention scheme is also available in respect of partnership 
shares in 2010 the company introduced a matching share element in respect of partnership shares the first award of which will be made 
in 2011 at the company’s agm in 2002 shareholders approved the issue of new shares for the purposes of the allemployee share plan
the astrazeneca executive annual bonus scheme
this scheme is a performance bonus scheme for directors and senior employees who do not participate in the astrazeneca uk performance 
bonus plan annual bonuses are paid in cash and reflect both corporate and individual performance measures the remuneration committee 
has discretion to reduce or withhold bonuses if business performance falls sufficiently short of expectations in any year such as to make the 
payment of bonuses inappropriate
the astrazeneca deferred bonus plan
this plan was introduced in 2006 and is used to defer a portion of the bonus earned under the astrazeneca executive annual bonus scheme 
into ordinary shares in the company for a period of three years the plan currently operates only in respect of executive directors and members 
of the set awards of shares under this plan are typically made in february each year the first award having been made in february 2006
sweden
in sweden an allemployee performance bonus plan is in operation which rewards strong individual performance bonuses are paid 50 
into a fund investing in astrazeneca equities and 50 in cash the astrazeneca executive annual bonus scheme the astrazeneca share 
option plan and the astrazeneca performance share plan all operate in respect of relevant astrazeneca employees in sweden astrazeneca annual report and form 20f information 2010 174 financial statements
financial statements
24 employee costs and share option plans for employees continued
us
in the us there are two allemployee shortterm or annual performance bonus plans in operation to differentiate and reward strong individual 
performance annual bonuses are paid in cash there is also one senior staff longterm incentive scheme under which approximately 60 
participants may be eligible for awards granted as astrazeneca adss astrazeneca adss necessary to satisfy the awards are purchased 
in the market or funded via a share trust the astrazeneca performance share plan and the astrazeneca global restricted stock plan operate 
in respect of relevant employees in the us
share plans 
the astrazeneca performance share plan
this plan was approved by shareholders in 2005 for a period of 10 years generally awards can be granted at any time but not during a close 
period of the company the first grant of awards was made in june 2005 the main grant of awards in 2010 under the plan was in march 
with further smaller grants in may august and november awards granted under the plan vest after three years and can be subject to the 
achievement of performance conditions for awards to all participants in 2010 except employees of medimmune 50 of the award will 
vest subject to the performance of the company’s total shareholder return tsr compared with that of a selected peer group of other 
pharmaceutical companies and 50 will vest subject to the achievement of a net cash flow target
a separate performance condition applies to employees of medimmune linked to the achievement of medimmune business targets 
the remuneration committee has responsibility for agreeing any awards under the plan and for setting the policy for the way in which 
the plan should be operated including agreeing performance targets and which employees should be invited to participate a fuller 
description of this plan can be found in the astrazeneca performance share plan section from page 125 in the directors’ remuneration report
the astrazeneca pharmaceuticals lp executive performance share plan
this plan was introduced in 2007 and up to and including the awards made in 2009 was used to grant awards of performance shares 
to selected us employees under broadly the same terms as awards are made under the astrazeneca performance share plan there were 
no awards made under this plan in 2010 all awards of performance shares to us employees and employees of medimmune in 2010 were 
made under the astrazeneca performance share plan described above the remuneration committee has responsibility for agreeing any 
awards under the plan and for setting the policy for the way in which the plan should be operated including agreeing performance targets 
and which employees should be invited to participate
the astrazeneca investment plan
this plan was introduced in 2010 and approved by shareholders at the 2010 agm the main grant of awards in 2010 under the plan was in 
may with a further smaller grant in august awards granted under the plan vest after eight years and are subject to performance conditions 
measured over a period of between three and eight years for awards granted in 2010 the performance conditions relate to the annual 
dividend paid to shareholders and dividend cover over a fouryear performance period the awards are then subject to a fouryear holding 
period before they can vest the remuneration committee has responsibility for agreeing any awards under the plan and for setting the policy 
for the way in which the plan should be operated including agreeing performance targets and which employees should be invited to participate 
a fuller description of this plan can be found in the astrazeneca investment plan section from page 126 of the directors’ remuneration report
the astrazeneca global restricted stock plan
this plan was introduced in 2010 and replaces the astrazeneca pharmaceuticals lp restricted stock unit award plan and the medimmune 
inc 2008 restricted stock unit award plan described below the main grant of awards in 2010 under the plan was in march with a further 
smaller grant in august this plan provides for the grant of restricted stock unit rsu awards to selected below setlevel employees and is 
used in conjunction with the astrazeneca performance share plan to provide a mix of rsus and performance shares awards typically vest 
on the third anniversary of the date of grant and are contingent on continued employment with the company the remuneration committee 
has responsibility for agreeing any awards under the plan and for setting the policy for the way in which the plan should be operated
the astrazeneca pharmaceuticals lp restricted stock unit award plan
this plan was introduced in 2007 and previously provided for the grant of rsu awards to selected employees predominantly in the us 
this plan was used in conjunction with the astrazeneca share option plan to provide a mix of rsus and share options there were no awards 
granted under this plan in 2010 this plan was replaced in 2010 by the global restricted stock plan described above the remuneration 
committee had responsibility for agreeing any awards under the plan and for setting the policy for the way in which the plan should be operated
the medimmune inc 2008 restricted stock unit award plan
this plan was introduced in 2008 and previously provided for the grant of rsu awards to selected employees of medimmune this plan was 
used in conjunction with the astrazeneca share option plan to provide a mix of rsus and share options there were no awards granted 
under this plan in 2010 this plan was replaced in 2010 by the global restricted stock plan described above the remuneration committee 
had responsibility for agreeing any awards under the plan and for setting the policy for the way in which the plan should be operated
the astrazeneca restricted share plan
this plan was introduced in 2008 and provides for the grant of restricted share awards to key employees excluding executive directors awards 
are made on an ad hoc basis with variable vesting dates the plan has been used five times in 2010 to make awards to 24 employees 
the remuneration committee has responsibility for agreeing any awards under the plan and for setting the policy for the way in which the 
plan should be operated astrazeneca annual report and form 20f information 2010 financial statements 175
corporate governance additional information financial statements overview business review
24 employee costs and share option plans for employees continued
astrazeneca performance share plan
shares
’000
wafv
1 
pence
wafv
1 

shares awarded in march 2008 1338 941 1888
shares awarded in august 2008 14 1326 2446
shares awarded in march 2009 1190 1140 1670
shares awarded in august 2009 8 1424 2318
shares awarded in march 2010 2002 1495 2238
shares awarded in may 2010 436 1431 2148
shares awarded in august 2010 139 1614 2495
shares awarded in november 2010 4 na 2511
astrazeneca pharmaceuticals lp executive performance share plan
shares
’000
wafv
1 

shares awarded in march 2008 2094 1888
shares awarded in august 2008 20 2446
shares awarded in march 2009 2288 1670
shares awarded in august 2009 6 2318
astrazeneca investment plan
shares
’000
wafv
1 
pence
wafv
1 

shares awarded in may 2010 76 2575 3866
shares awarded in august 2010 15 2904 na
astrazeneca global restricted stock plan
shares
’000
wafv
1 
pence
wafv
1 

shares awarded in march 2010 2672 2989 4475
shares awarded in august 2010 8 3227 4989
astrazeneca pharmaceuticals lp restricted stock unit award plan
units
’000
wafv
1 

units awarded in march 2008 1313 3776
units awarded in march 2009 1283 3339
medimmune inc 2008 restricted stock unit award plan
units
’000
wafv
1 

units awarded in march 2008 130 3776
units awarded in march 2009 177 3339
astrazeneca restricted share plan
shares
’000
wafv
1 
pence
wafv
1 

shares awarded in march 2008 51 1882 na
shares awarded in may 2008 35 na 4420
shares awarded in august 2009 9 na 4636
shares awarded in september 2009 22 na 4461
shares awarded in february 2010 159 2954 4770
shares awarded in may 2010 25 2861 4296
shares awarded in august 2010 108 3227 4989
shares awarded in november 2010 27 na 5021
shares awarded in december 2010 20 na 4830
1
 weighted average fair value
the fair values were determined using a modified version of the binomial model this method incorporated expected dividends but no other 
features into the measurements of fair value
the charge for sharebased payments in respect of the astrazeneca performance share plan the us incentive share schemes and restricted 
stock unit award plan is 120m 2009 81m 2008 53m the plans are equity settled
share option plans
at 31 december 2010 there were options outstanding under the astrazeneca savingsrelated share option plan and the astrazeneca 
share option plan astrazeneca annual report and form 20f information 2010 176 financial statements
financial statements
24 employee costs and share option plans for employees continued
1 summary of the astrazeneca share option plan
this is a share option plan for employees of participating astrazeneca group companies which was approved by shareholders at the company’s 
agm in 2000 the first grant of options occurred in august 2000 for a period of 10 years the final grant of options under the plan was in 
august 2009 there were no grants of options under the plan in 2010 and no further grants will be made the remuneration committee set 
the policy for the company’s operation of the plan and in accordance with the rules of the plan conducted a review of the plan in 2004
eligibility
any astrazeneca employee could be recommended from time to time for the grant of an option the remuneration committee set the 
policy for the company’s operation of the plan including as regards which employees were eligible to participate
grant of options
options were not granted during a close period the grant of options was supervised by the remuneration committee no payment was 
required for the grant of an option options are not transferable options were granted over astrazeneca ordinary shares or adss
acquisition price
the price per ordinary share payable upon the exercise of an option is not less than an amount equal to the average of the middlemarket 
closing price for an ordinary share or ads of the company on the london or new york stock exchange on the three consecutive dealing 
days immediately before the date of grant or as otherwise agreed with hm revenue  customs where the option is an option to subscribe 
the price payable upon exercise cannot be less than the nominal value of an ordinary share of the company
exercise of options
an option will normally be exercisable between three and 10 years following its grant provided any relevant performance condition has been 
satisfied options may be satisfied by the issue of new ordinary shares or by existing ordinary shares purchased in the market the remuneration 
committee sets the policy for the company’s operation of the plan including as regards whether any performance targets will apply to the 
grant andor exercise of each eligible employee’s option options normally lapse on cessation of employment exercise is however permitted 
for a limited period following cessation of employment either for reasons of injury or disability redundancy or retirement or at the discretion 
of the remuneration committee and on an amalgamation takeover or windingup of the company
2 summary of the astrazeneca savingsrelated share option plan saye scheme
the astrazeneca savingsrelated share option plan was approved by shareholders in 2003 for a period of 10 years the first grant of options 
under this plan was made in september 2003 
eligibility
ukresident employees of participating astrazeneca companies are automatically eligible to participate
grant of options
invitations to apply for options may be issued within six weeks after the announcement by the company of its results for any period and at 
other times in circumstances considered to be exceptional by the directors no invitations may be issued later than 10 years after the approval 
of the scheme by shareholders options may only be granted to employees who enter into hm revenue  customsapproved savings 
contracts with the savings body nominated by the company under which monthly savings of a fixed amount currently not less than £5 nor 
more than £250 are made over a period of three or five years the number of ordinary shares over which an option is granted will be such 
that the total amount payable on its exercise will be the proceeds on maturity of the related savings contract no payment will be required 
for the grant of an option options are not transferable
individual participation
monthly savings by an employee under all savings contracts linked to options granted under any save as you earn scheme may not exceed 
£250 or such lower amounts as may be determined by the directors
acquisition price
the price per ordinary share payable upon the exercise of an option will not normally be less than the higher of
a 90 of the arithmetical average of the middlemarket quotations for an ordinary share on the london stock exchange on three consecutive 
dealing days shortly before the date on which invitations to apply for options are issued provided that no such day may fall before the 
company last announced its results for any period or such other dealing day or days falling within the sixweek period for the issue of 
invitations as the directors may decide and
b the nominal value of an ordinary share unless the option is expressed to relate only to existing ordinary shares
exercise of options
an option will normally be exercisable only for six months commencing on the third or fifth anniversary of the commencement of the related 
savings contract options are satisfied by the issue of new ordinary shares options normally lapse on cessation of employment exercise 
is however permitted for a limited period irrespective of the period during which the option has been held following cessation of employment 
in certain compassionate circumstances andor where an option has been held for more than three years except on dismissal for misconduct 
andor on an amalgamation takeover or windingup of the company astrazeneca annual report and form 20f information 2010 financial statements 177
corporate governance additional information financial statements overview business review
24 employee costs and share option plans for employees continued
3 summary of the zeneca 1994 executive share option scheme 1994 scheme
the zeneca 1994 executive share option scheme was introduced in 1994 the last date for the grant of options was 16 march 2000 and the 
scheme was replaced by the astrazeneca share option plan options granted under the 1994 scheme are normally exercisable between 
three and 10 years following grant provided the relevant performance condition has been satisfied options are satisfied by the issue of new 
ordinary shares the performance condition applicable to the 1994 scheme was that earnings per share must have grown by at least the 
increase in the uk retail price index over three years plus 3 per annum satisfaction of this condition was tested annually by reference to 
the audited financial statements all options granted under the 1994 scheme have become exercisable the performance conditions having 
been satisfied there are no longer any options outstanding under the 1994 scheme the remaining outstanding options having lapsed or been 
exercised in 2010
astrazeneca share option plan saye schemes 1994 scheme
options
’000
waep
1 
pence
options
’000
waep
1 
pence
options
’000
waep
1 
pence
at 1 january 2008
options outstanding 42560 2451 2720 2226 1490 2364
movements during 2008
options granted 14858 1887 483 2398 – –
options exercised 2577 2204 675 2062 99 2620
options forfeited 2273 2622 388 2291 106 2594
weighted average fair value of options granted during the year 404 499 –
at 31 december 2008
options outstanding 52568 2978 2140 2304 1285 2934
movements during 2009
options granted 15246 2281 351 2563 – –
options exercised 2275 2213 286 2258 317 2670
options forfeited 3141 2604 169 2340 51 2688
weighted average fair value of options granted during the year 423 425 –
at 31 december 2009
options outstanding 62398 2601 2036 2349 917 2734
movements during 2010
options granted –– 276 2907 ––
options exercised 10144 2538 455 2216 765 2714
options forfeited 3189 2470 183 2559 152 2714
weighted average fair value of options granted during the year – 267 –
at 31 december 2010
options outstanding 49065 2439 1674 2455 – –
range of exercise prices
1882 to
3487
2164 to
3001 –
weighted average remaining contractual life 2185 days 1062 days –
options exercisable 24292 2799 65 2204 – –
1
 weighted average exercise price
the fair value of options is estimated at the date of grant using the blackscholes option pricing model the following table gives the assumptions 
applied to the options granted in the respective periods shown expectations of early exercise are incorporated into the model
2010 2009 2008
average share price pence 3058 2651 2295
weighted average exercise price pence
astrazeneca share option plan – 2281 1887
saye schemes 2907 2563 2398
expected volatility  200 250 250
dividend yield  55 40 34
riskfree interest rate  25 37 43
expected lives astrazeneca share option plan years 60 60 60
expected lives saye schemes years 42 42 40
the expected volatility is based on the historic volatility calculated based on the weighted average remaining life of the share options adjusted 
for any expected changes to future volatility due to publicly available information
no other features of options granted were incorporated into the measurement of fair value
the charge for sharebased payments in respect of share options is 53m 2009 105m 2008 125m which is comprised entirely of 
equitysettled transactions astrazeneca annual report and form 20f information 2010 178 financial statements
financial statements
25 commitments and contingent liabilities
2010
m
2009
m
2008
m
commitments
contracts placed for future capital expenditure on property plant and equipment and 
software development costs not provided for in these accounts 259 368 178
guarantees and contingencies arising in the ordinary course of business for which no security has been given are not expected to result in 
any material financial loss
research and development collaboration payments
the group has various ongoing collaborations including inlicensing and similar arrangements with development partners such collaborations 
may require the group to make payments on achievement of stages of development launch or revenue milestones although the group generally 
has the right to terminate these agreements at no cost the group recognises research and development milestones as intangible assets 
once it is committed to payment which is generally when the group reaches set trigger points in the development cycle revenuerelated 
milestones are recognised as intangible assets on product launch at a value based on the group’s longterm revenue forecasts for the 
related product the table below indicates potential development and revenuerelated payments that the group may be required to make 
under such collaborations
total
m
under 1 year
m
years 1 and 2
m
years 3 and 4
m
years 5 
and greater
m
future potential research and development milestone payments 3106 115 711 646 1634
future potential revenue milestone payments 3234 – 2 70 3162
the table includes all potential payments for achievement of milestones under ongoing research and development arrangements revenue
related milestone payments represent the maximum possible amount payable on achievement of specified levels of revenue as set out in 
individual contract agreements but exclude variable payments that are based on unit sales eg royaltytype payments which are recognised 
as the associated sale is recognised in the comprehensive income statement the table excludes any payments already capitalised in the 
financial statements for the year ended 31 december 2010 and excludes payments under the merck agreements detailed below
the future payments we disclose represent contracted payments and as such are not discounted and are not risk adjusted as detailed in 
the principal risks and uncertainties section from page 96 the development of any pharmaceutical product candidate is a complex and risky 
process that may fail at any stage in the development process due to a number of factors including items such as failure to obtain regulatory 
approval unfavourable data from key studies adverse reactions to the product candidate or indications of other safety concerns the timing of 
the payments is based on the group’s current best estimate of achievement of the relevant milestone
arrangements with merck
introduction
in 1982 astra ab set up a joint venture with merck  co inc 
now merck sharp  dohme corp a subsidiary of the new merck 
 co inc that resulted from the merger with scheringplough 
merck for the purposes of selling marketing and distributing 
certain astra products in the us in 1998 this joint venture was 
restructured restructuring under the agreements relating to the 
restructuring agreements a us limited partnership partnership 
was formed in which merck is the limited partner and astrazeneca 
is the general partner and astrazeneca obtained control of the joint 
venture’s business subject to certain limited partner and other rights 
held by merck and its affiliates these rights provide merck with 
safeguards over the activities of the partnership and place limitations 
on astrazeneca’s commercial freedom to operate the agreements 
provided for
  a payment to merck in the event of a business combination 
between astra and a third party in order for merck to relinquish 
certain claims to that third party’s products
  annual contingent payments
  termination arrangements which cause merck to relinquish its 
interests in astrazeneca’s products and activities in stages 
some of which are mandatory and others optional
these elements are discussed in further detail below together with 
a summary of their accounting treatments
payment in the event of a business combination
on the merger of astra and zeneca a onetime lump sum payment 
of 809m was triggered as a result of this payment merck 
relinquished any claims it may have had to zeneca products 
this payment was expensed at the point of merger since it caused 
no incremental benefits over the prior years’ aggregate astra and 
zeneca performance to accrue to the merged astrazeneca entity
annual contingent payments
astrazeneca makes ongoing payments to merck based on sales of 
certain of its products in the us the ‘contingent payments’ on the 
‘agreement products’ astrazeneca will continue to make contingent 
payments to merck until at least 2012 contingent payments 
excluding those in respect of prilosec nexium and the authorised 
generic version of felodipine ceased in 2010 as astrazeneca 
exercised the first option as discussed under first option below 
contingent payments in respect of prilosec and nexium will cease 
in late 2012 if astrazeneca exercises the second option that year 
as discussed under second option below contingent payments 
in respect of the authorised generic version of felodipine will continue 
at least until june 2011
the annual contingent payments on agreement products are 
expensed as incurred
termination arrangements
the agreements provided for arrangements and payments under 
which subject to the exercise of certain options the rights and 
interests in astrazeneca’s activities and products held by merck 
immediately prior to the merger would be terminated including 
details of
  the advance payment
  the partial retirement
  the trueup
  the loan note receivable
  the first option
  second option astrazeneca annual report and form 20f information 2010 financial statements 179
corporate governance additional information financial statements overview business review
advance payment
the merger between astra and zeneca in 1999 triggered the first 
step in the termination arrangements merck relinquished all rights 
including contingent payments on future sales to potential astra 
products with no existing or pending us patents at the time of the 
merger as a result astrazeneca now has rights to such products 
and is relieved of potential obligations to merck and restrictions in 
respect of those products including annual contingent payments 
affording astrazeneca substantial freedom to exploit the products 
as it sees fit
at the time of the merger the advance payment was paid it was 
calculated as the then net present value of 28bn discounted from 
2008 to the date of merger at a rate of 13 per annum and amounted 
to 967m it was subject to a trueup in 2008 as discussed under 
trueup below
partial retirement
in march 2008 there was a partial retirement of merck’s limited 
partnership interest by payment to merck of an amount calculated 
as a multiple of the average annual contingent payments from 
2005 to 2007 on the relevant products plus 750m the payment 
was 4271m
upon the partial retirement merck’s rights in respect of certain of the 
agreement products ended the products covered by the partial 
retirement include toprolxl pulmicort rhinocort and symbicort
trueup 
in 2008 in accordance with the agreements there was a trueup of 
the advance payment the trueup amount was based on a multiple 
of the average annual contingent payments from 2005 to 2007 in 
respect of all the agreement products with the exception of prilosec 
and nexium subject to a minimum of 66bn plus other defined 
amounts totalling 912m in accordance with the agreements 
the calculated amount was then reduced by the appraised value 
as discussed under ‘first option’ below the partial retirement 
and the advance payment at its undiscounted amount of 28bn 
this trueup amount was settled in an amount equal to 241m 
owed by merck to astrazeneca
loan note receivable
included in the assets and liabilities covered by the restructuring was 
a loan note receivable by astrazeneca from merck with a face value 
of 138bn in 2008 at the same time as the settlement of the partial 
retirement and the trueup merck settled the loan note receivable 
by paying astrazeneca 138bn 
if merck had exercised the first option in 2008 the net minimum 
payment that would have been made to merck would have been 
33bn being the minimum combined payments of 47bn specified 
in the agreements on the partial retirement the trueup and first 
option less the repayment of the loan note of 138bn in accounting 
for the restructuring in 1998 the loan note was included in the 
determination of the fair values of the assets and liabilities to be 
acquired at that time the loan note was ascribed a fair value of zero 
on acquisition and on the balance sheet because it was estimated 
that the net minimum payment of 33bn equated to the fair value 
of the rights to be acquired under the partial retirement trueup 
and first option
first option
in accordance with the agreements in 2008 a calculation was 
made of the appraised value being the net present value of the 
future contingent payments in respect of all agreement products 
not covered by the partial retirement other than prilosec and 
nexium the appraised value was calculated in 2008 as 647m 
payment of the appraised value to merck in march 2008 would 
have taken place only if merck had exercised the first option in 
2008 merck did not exercise this option under the agreements 
astrazeneca could exercise the first option in the first two months 
of 2010 for a sum equal to the 2008 appraised value 
in 2010 astrazeneca gave merck an irrevocable notice of its intention 
to exercise the first option payment of 647m to merck was made 
on 30 april 2010 this payment resulted in astrazeneca acquiring 
merck’s interests in products covered by the first option including 
entocort atacand plendil and the authorised generic version of 
felodipine and certain products still in development principally 
brilinta and lesogaberan azd3355 on 30 april 2010 contingent 
payments on these products ceased with respect to periods after 
this date except for contingent payments on the authorised generic 
version of felodipine which will continue at least until june 2011
and astrazeneca obtained the ability to exploit these products 
and other opportunities in the cardiovascular and neuroscience 
therapy areas as detailed in note 9 the intangible asset relating to 
lesogaberan azd3355 of 128m was subsequently impaired to a 
value of nil following a decision to terminate further development of 
this compound
second option
astrazeneca may exercise a second option to repurchase merck’s 
interests in prilosec and nexium in the us this option is exercisable 
by astrazeneca in 2012 or in 2017 or if combined annual sales of 
the two products fall below a minimum amount astrazeneca’s 
consummation of the second option will end the contingent 
payments in respect of prilosec and nexium and will effectively end 
astrazeneca’s relationship with and obligations to merck other than 
some residual manufacturing arrangements in september 2010 
astrazeneca and merck reached an agreement with respect to 
the treatment of vimovo under the agreements pursuant to which 
astrazeneca will pay merck certain amounts with respect to vimovo 
only if it exercises the second option and as part of the exercise 
price for the second option
the exercise price for the second option is the net present value of 
the future annual contingent payments on nexium and prilosec as 
determined at the time of exercise and the net present value of up 
to 5 percent of future us sales of vimovo with the precise amount 
dependent on the level of annual sales and the timing of the option 
exercise the exercise price of the second option cannot be 
determined at this time
accounting treatment of termination arrangements
astrazeneca considers that the termination arrangements described 
above represent the acquisition in stages of merck’s interests in 
the partnership and agreement products including merck’s rights 
to contingent payments and depend in part on the exercise of the 
first and second options the effects will only be reflected in the 
financial statements as these stages are reached if and when all 
such payments are made astrazeneca will have unencumbered 
discretion in its operations in the us market 
astrazeneca anticipates that the benefits that accrue under all of 
the termination arrangements arise 
  currently from the substantial freedom over products acquired 
or discovered postmerger
  on occurrence of each stage of such arrangements from 
enhanced contributions from and substantial freedom over 
those products that have already been launched for example 
pulmicort symbicort rhinocort and atacand and those that 
are in development
economic benefits include relief from contingent payments 
anticipated cost savings from cessation of manufacturing 
arrangements and other cost efficiencies together with the 
strategic advantages of increased freedom to operate
25 commitments and contingent liabilities continued astrazeneca annual report and form 20f information 2010 180 financial statements
financial statements
the advance payment has been accounted for as an intangible 
asset and is being amortised over 20 years this approach reflects 
the fact that under the agreements astrazeneca has acquired rights 
relieving it of potential obligations and restrictions in respect of astra 
products with no existing or pending patents at the time of merger 
although these rights apply in perpetuity the period of amortisation 
of 20 years has been chosen to reflect the typical timescale of 
development and marketing of a product 
the net payment made in 2008 consisting of the partial retirement 
of 4271bn less the trueup of 241m and loan note receivable of 
138bn in total 26bn has been capitalised as intangible assets 
part of the net payment made in 2008 resulted in astrazeneca 
acquiring merck’s interests in certain astrazeneca products including 
pulmicort rhinocort symbicort and toprolxl consequently 
astrazeneca no longer has to make contingent payments on these 
products to merck and has obtained the ability to fully exploit these 
products and to fully exploit other opportunities in the respiratory 
therapy area that astrazeneca was previously prevented from doing 
by merck’s interests in these products intangible assets aggregating 
994m have been recognised in respect of these acquired product 
rights and these are being amortised over various periods giving 
rise to an annual expense of approximately 60m going forward
the balance of the net payment made in 2008 1656m represented 
‘nonrefundable deposits’ for future product rights associated with 
the first and second options in 2010 647m was recognised as an 
intangible asset as a result of payment of the appraised value for the 
first option see above together with the 1656m nonrefundable 
deposits recognised in 2008 the total sum of 2303m was allocated 
as follows 689m to contingent payment relief 1140m to intangible 
assets reflecting the ability to fully exploit the products in the 
cardiovascular and neuroscience therapy areas and 474m as 
nonrefundable deposits associated with the second option 
the intangible assets recognised on exercise of the first option 
give rise to an additional amortisation expense in the range of 
20m to 50m per annum charged to cost of sales in respect of 
contingent payment relief the precise amount dependent upon the 
launch status of the covered pipeline compounds and an additional 
charge to sga of around 60m per annum amortisation on these 
intangible assets began when the 647m payment was made on 
30 april 2010 the remaining 474m relating to the nonrefundable 
deposits will not be subject to amortisation until the second option 
is exercised and the related product rights are acquired if the second 
option is exercised then amortisation related to the ability to exploit 
opportunities in the gastrointestinal therapy area will commence in 
the amount of around 25m per annum charged to sga as well 
as an as yet indeterminable amount of amortisation related to relief 
from contingent payments 
the intangible assets relating to purchased product rights and the 
intangible assets relating to nonrefundable deposits are subject 
to impairment testing and would be partially or wholly impaired if 
a product is withdrawn or if activity in any of the affected therapy 
areas is significantly curtailed consequently following the 
discontinuation of the development of lesogaberan azd3355 in 
the third quarter of 2010 an impairment of 128m was recognised 
if it becomes probable that the second option will not be exercised 
the nonrefundable deposits for the product rights to be acquired 
under the second option will be expensed immediately
25 commitments and contingent liabilities continued environmental costs and liabilities
the group’s expenditure on environmental protection including both 
capital and revenue items relates to costs which are necessary for 
implementing internal systems and programmes and meeting legal 
and regulatory requirements for processes and products
they are an integral part of normal ongoing expenditure for carrying 
out the group’s research manufacturing and commercial operations 
and are not separated from overall operating and development costs 
there are no known changes in legal regulatory or other requirements 
resulting in material changes to the levels of expenditure for 2008 
2009 or 2010
in addition to expenditure for meeting current and foreseen 
environmental protection requirements the group incurs costs in 
investigating and cleaning up land and groundwater contamination 
in particular astrazeneca has environmental liabilities at some 
currently or formerly owned leased and third party sites
in the us zeneca inc andor its indemnitees have been named as 
potentially responsible parties prps or defendants at approximately 
19 sites where zeneca inc is likely to incur future environmental 
investigation remediation operation and maintenance costs under 
federal or state statutory or common law environmental liability 
allocation schemes together us environmental consequences 
similarly stauffer management company llc smc which was 
established in 1987 to own and manage certain assets of stauffer 
chemical company acquired that year andor its indemnitees 
have been named as prps or defendants at approximately 31 sites 
where smc is likely to incur us environmental consequences 
outside the us astrazeneca has given indemnities to third parties 
in respect of approximately 22 sites these environmental liabilities 
arise from legacy operations that are not part of the group’s current 
pharmaceutical business and at most of these sites remediation 
where required is either completed or nearing completion
astrazeneca has made provisions for the estimated costs of future 
environmental investigation remediation operation and maintenance 
activity beyond normal ongoing expenditure for maintaining the 
group’s rd and manufacturing capacity and product ranges 
where a present obligation exists it is probable that such costs will 
be incurred and they can be estimated reliably with respect to such 
estimated future costs there were provisions at 31 december 2010 
in the aggregate of 106m which mainly relate to the us these 
provisions do not include possible additional costs that are not 
currently probable where we are jointly liable or otherwise have cost 
sharing agreements with third parties we reflect only our share of 
the obligation where the liability is insured in part or in whole by 
insurance or other arrangements for reimbursement an asset is 
recognised to the extent that this recovery is virtually certain
it is possible that astrazeneca could incur future environmental 
costs beyond the extent of our current provisions the extent of 
such possible additional costs is inherently difficult to estimate due 
to a number of factors including 1 the nature and extent of claims 
that may be asserted in the future 2 whether astrazeneca has or 
will have any legal obligation with respect to asserted or unasserted 
claims 3 the type of remedial action if any that may be selected 
at sites where the remedy is presently not known 4 the potential 
for recoveries from or allocation of liability to third parties and 
5 the length of time that the environmental investigation remediation 
and liability allocation process can take notwithstanding and subject 
to the foregoing it is estimated that potential additional loss for future 
environmental investigation remediation and remedial operation  
and maintenance activity above and beyond our provisions could  
be in aggregate in the order of 20m to 40m which relates solely  
to the us astrazeneca annual report and form 20f information 2010 financial statements 181
corporate governance additional information financial statements overview business review
legal proceedings
astrazeneca is involved in various legal proceedings considered 
typical to its business including actual or threatened litigation and
or actual or potential government investigations relating to 
employment matters product liability commercial disputes pricing 
sales and marketing practices infringement of intellectual property 
rights the validity of certain patents and antitrust laws the more 
significant matters are discussed below
most of the claims involve highly complex issues often these issues 
are subject to substantial uncertainties and therefore the probability 
of a loss if any being sustained and an estimate of the amount of 
any loss is difficult to ascertain consequently for a majority of these 
claims it is not possible to make a reasonable estimate of the 
expected financial effect if any that will result from ultimate resolution 
of the proceedings in these cases astrazeneca discloses information 
with respect to the nature and facts of the cases
with respect to each of the legal proceedings described below 
other than those for which provision has been made we are unable 
to make estimates of the possible loss or range of possible losses at 
this stage other than as set forth herein 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 this is due 
to a number of factors including 1 the stage of the proceedings 
in many cases trial dates have not been set and the overall length 
and extent of pretrial discovery 2 the entitlement of the parties to 
an action to appeal a decision 3 clarity as to theories of liability 
damages and governing law 4 uncertainties in timing of litigation 
and 5 the possible need for further legal proceedings to establish 
the appropriate amount of damages if any
however although there can be no assurance regarding the outcome 
of any of the legal proceedings referred to in this note 25 based 
on management’s current and considered view of each situation 
we do not currently expect them to have a material adverse effect 
on our financial position this position could of course change over 
time not least because of the factors referred to above
in cases that have been settled or adjudicated or where quantifiable 
fines and penalties have been assessed and which are not subject 
to appeal or other similar forms of relief or where a loss is probable 
and we are able to make a reasonable estimate of the loss we 
indicate the loss absorbed or the amount of the provision accrued
where it is considered that the group is more likely than not to prevail 
legal costs involved in defending the claim are charged to profit as 
they are incurred
where it is considered that the group has a valid contract which 
provides the right to reimbursement from insurance or otherwise 
of legal costs andor all or part of any loss incurred or for which 
a provision has been established and we consider recovery to 
be virtually certain the best estimate of the amount expected to be 
received is recognised as an asset
assessments as to whether or not to recognise provisions or assets 
and of the amounts concerned usually involve a series of complex 
judgements about future events and can rely heavily on estimates 
and assumptions astrazeneca believes that the provisions recorded 
are adequate based on currently available information and that the 
insurance recoveries recorded will be received however given the 
inherent uncertainties involved in assessing the outcomes of these 
cases and in estimating the amount of the potential losses and the 
associated insurance recoveries we could in future periods incur 
judgments or insurance settlements that could have a material 
adverse effect on our results in any particular period
25 commitments and contingent liabilities continued intellectual property claims include challenges to the group’s patents 
on various products or processes and assertions of noninfringement 
of patents a loss in any of these cases could result in loss of patent 
protection on the related product the consequences of any such 
loss could be a significant decrease in sales of the product which 
could have a materially adverse effect on our future results 
the lawsuits pending against companies that have filed andas in 
the us seeking to market generic forms of products sold by the 
group prior to the expiry of the applicable patents covering these 
products typically include allegations of noninfringement invalidity 
and unenforceability of these patents in the event that the group is 
not successful in these actions or the statutory 30month stay expires 
before a ruling is obtained the companies involved will also have the 
ability subject to fda approval to introduce generic versions of the 
product concerned
astrazeneca has full confidence in and will vigorously defend and 
enforce its intellectual property
accolate zafirlukast
patent litigation – us
as previously reported in june 2008 astrazeneca commenced 
patent infringement litigation against dr reddy’s laboratories ltd 
and dr reddy’s laboratories inc together drl in the us district 
court for the district of new jersey for infringement of us patent 
nos 5319097 the ’097 patent 5482963 the ’963 patent and 
6143775 the ’775 patent in 2009 the parties agreed to dismiss 
without prejudice all claims and counterclaims based on the ’097 
and ’775 patents in february 2010 drl filed a motion for summary 
judgment based on prosecution history estoppel astrazeneca 
applied for summary judgment in response in november 2010 
the us district court for the district of new jersey denied 
astrazeneca’s motion and granted drl a summary judgment that 
drl ’s zafirlukast tablets did not infringe the ’963 patent in december 
2010 astrazeneca filed a notice of appeal to the us court of appeals 
for the federal circuit in january 2011 astrazeneca and drl 
entered into a settlement agreement under which astrazeneca will 
dismiss its appeal and give drl a covenantnottosue respecting 
drl ’s zafirlukast anda product
arimidex anastrozole
patent litigation – canada
in 2009 astrazeneca received a notice of allegation from mylan 
pharmaceuticals ulc mylan in respect of canadian patent no 
1337420 the ’420 patent listed on the canadian patent register 
for arimidex astrazeneca filed a notice of application in federal 
court seeking an order prohibiting the minister of health from issuing 
a notice of compliance to mylan for its anastrozole tablets until the 
expiration of the ’420 patent in october 2010 the hearing in this 
matter was scheduled for three days commencing on 31 may 2011
atacand candesartan cilexetil
patent litigation – us
in november 2010 astrazeneca received a paragraph iv certification 
noticeletter from apotex inc apotex informing astrazeneca that 
apotex was seeking approval to market a generic version of atacand 
prior to the expiration of us patent no 5534534 the ’534 patent 
apotex alleged that its product did not infringe the ’534 patent 
astrazeneca did not file suit in response to apotex’s letter
patent litigation – canada
in april 2009 astrazeneca received a notice of allegation from 
sandoz canada inc sandoz in respect of canadian patent nos 
2040955 the ’955 patent and 2083305 the ’305 patent listed 
on the canadian patent register for atacand sandoz indicated it 
would await the expiry of the ’955 patent but alleged that the ’305 
patent was not infringed and was not properly listed on the canadian 
patent register astrazeneca annual report and form 20f information 2010 182 financial statements
financial statements
in may 2009 astrazeneca filed a notice of application in federal 
court seeking an order prohibiting the minister of health from 
issuing a notice of compliance to sandoz for its 4 8 and 16mg 
candesartan cilexetil tablets until the expiration of the ’305 patent 
in december 2009 astrazeneca discontinued the proceeding
in march 2010 astrazeneca received a notice of allegation from 
cobalt pharmaceuticals inc cobalt in respect of the ’955 and 
’305 patents listed on the canadian patent register for atacand 
cobalt has confirmed it will await the expiry of the ’955 patent 
for the ’305 patent cobalt alleges that the patent is not infringed 
is invalid irrelevant and not properly listed astrazeneca did not 
commence an application in response
in april 2010 astrazeneca received a notice of allegation from 
pharmascience inc pms in respect of the ’305 patent listed on 
the canadian patent register for atacand pms alleges that the 
formulation patent is not infringed pms has not addressed the 
’955 patent and must await its expiry in april 2011 before it may 
receive its marketing authorisation astrazeneca did not commence 
an application in response
in may 2010 astrazeneca received a notice of allegation from  
mylan pharmaceuticals ulc mylan in respect of the ’955 and ’305 
patents listed on the canadian patent register for atacand mylan 
has confirmed it will await the expiry of the ’955 patent mylan 
alleged that the ’305 patent is not infringed is improperly listed  
and is invalid astrazeneca did not commence an application  
in response
in june 2010 astrazeneca received a notice of allegation from 
sandoz in respect of the ’305 patent and relating to the 32mg 
strength of atacand not previously addressed by sandoz sandoz 
alleges that the ’305 patent is not infringed and is improperly listed 
sandoz does not address the ’955 patent and must await its expiry 
before it may receive its marketing authorisation astrazeneca did 
not commence an application in response
in august 2010 astrazeneca received a notice of allegation from 
teva canada limited teva in respect of the ’955 patent and the 
’305 patent listed on the canadian patent register for atacand 
astrazeneca did not commence an application in response in 
december 2010 astrazeneca received another notice of allegation 
from teva in respect of the ’955 and ’305 patents listed on the 
canadian patent register for atacand teva has confirmed it will 
await the expiry of the ’955 patent astrazeneca is evaluating the 
allegations
none of sandoz cobalt pms mylan or teva may receive a marketing 
authorisation before april 2011
patent litigation – brazil
in october 2010 an infringement action with a request for an 
interlocutory injunction was filed against sandoz do brasil industria 
farmaceutica ltda sandoz in the central court of são paolo 
the court denied the request for an interlocutory injunction on 
22 october 2010 takeda pharmaceutical company ltd and 
astrazeneca have filed a joint appeal sandoz has responded 
and a decision is expected in the first quarter of 2011
patent litigation – eu
in portugal a request was filed with the lisbon administrative 
court of first instance in december 2009 seeking a preliminary 
injunction in the administrative courts in order to suspend the effect 
of decisions taken by administrative bodies in portugal to grant 
sandoz farmacêutica limitada marketing authorisations for generic 
candesartan cilexetil the court denied the preliminary injunction 
the decision has been appealed a similar preliminary injunction 
request was filed in april 2010 with respect to ptr pharma 
consulting lda as an interested party other similar preliminary 
injunction requests were filed in october 2010 with respect to 
laboratórios azevedos – industria farmacêutica laboratórios 
azevedos sa ceamed servico e consultadoria farmacêutica 
lda ceamed and teva pharma – produtos farmacêuticos lda 
as interested parties regarding candesartan cilexetil and also in 
combination with hydrochlorothiazide corresponding main actions 
have been initiated regarding all the above mentioned matters
in addition to the previously reported cases a preliminary injunction 
request was filed in december 2010 with respect to laboratórios 
azevedos and ceamed as interested parties in the capacity of 
owners of the marketing authorisations and of applicants of the 
retail prices regarding candesartan cilexetil containing generics 
the corresponding main action was filed in the administrative courts 
also in december 2010 with the aim of declaring null or to annul 
the decisions taken by administrative bodies in portugal granting 
laboratórios azevedos and ceamed marketing authorisations 
for generic candesartan cilexetil or to defer the effects of the said 
decision and to prevent the decision being taken by administrative 
bodies regarding the retail prices of the generic products a preliminary 
injunction request was filed in december 2010 with respect to 
labesfal – laboratorios almiro sa labesfal as an interested 
party in the capacity of owner of the marketing authorisations and 
of applicants of the retail prices regarding candesartan cilexetil 
and a combination of candesartan cilexetil and hydrochlorothiazide 
containing generics the corresponding main action was filed in the 
administrative courts in december 2010 with the aim of declaring 
null or to annul the decisions taken by administrative bodies in 
portugal granting labesfal marketing authorisations for generic 
candesartan cilexetil and a combination of candesartan cilexetil 
and hydrochlorothiazide or to defer the effects of the said decision 
and to prevent the decision being taken by administrative bodies 
regarding the retail prices of the generic products
atacand hctatacand plus 
candesartan cilexetilhydrochlorothiazide
patent litigation – us
as previously reported in 2008 and 2009 astrazeneca and takeda 
pharmaceutical company limited takeda received paragraph iv 
certification noticeletters from matrix laboratories limited matrix 
and sandoz inc sandoz notifying the parties that andas had been 
submitted to the fda seeking approval to market generic versions 
of atacand hct in 32125 3225 and 16125mg dose forms 
matrix is a subsidiary of mylan inc
neither matrix nor sandoz challenged the two listed compound 
patents us patent nos 5705517 and 5196444 the latest of 
which expires in june 2012 as a result neither generic filer can 
market its candesartan cilexetilhydrochlorothiazide hct 
combination product before december 2012 when the sixmonth 
paediatric exclusivity period expires matrix and sandoz have 
alleged that the remaining orange book patents listed for atacand 
hct us patent nos 5534534 5721263 5958961 and 
7538133 are invalid unenforceable or not infringed astrazeneca 
and takeda did not file a complaint for patent infringement in 
response to either noticeletter
patent litigation – canada
in 2009 astrazeneca received a notice of allegation from sandoz 
canada inc sandoz in respect of canadian patent nos 2040955 
the ’955 patent 2083305 the ’305 patent and 2125251 the ’251 
patent listed on the canadian patent register for atacand plus 
sandoz has confirmed that it will await the expiry of the ’955 patent 
but alleges that the ’305 patent is not infringed and is not properly 
listed on the canadian patent register and that the ’251 patent is 
not infringed is invalid and not properly listed in september 2009 
astrazeneca filed a notice of application in federal court seeking 
an order prohibiting the minister of health from issuing a notice of 
compliance to sandoz for its 16125mg candesartan cilexetilhct 
tablets until the expiration of the ’305 and ’251 patents in january 
2010 the court scheduled a hearing in the sandoz matter for four 
days beginning on 9 may 2011
25 commitments and contingent liabilities continued astrazeneca annual report and form 20f information 2010 financial statements 183
corporate governance additional information financial statements overview business review
in january 2010 astrazeneca received a notice of allegation from 
mylan pharmaceuticals ulc mylan in respect of the ’955 ’305 
and ’251 patents on 12 january 2011 mylan withdrew its notice 
of allegation and astrazeneca discontinued its application on 
17 january 2011
in april 2010 astrazeneca received two notices of allegation from 
cobalt pharmaceuticals inc cobalt in respect of the ’305 and ’251 
patents listed on the canadian patent register for atacand plus 
cobalt alleges that the ’305 patent is not infringed is invalid and is 
irrelevant and not properly listed cobalt alleges that the ’251 patent 
is not infringed and is invalid cobalt has indicated that it is prepared 
to await its marketing approval until after the ’955 patent expires in 
april 2011 astrazeneca commenced a proceeding in response in 
june 2010
in april 2010 astrazeneca received a notice of allegation from 
pharmascience inc pms in respect of the ’305 patent listed on  
the canadian patent register for atacand plus pms alleges that 
the ’305 patent is not infringed astrazeneca commenced a 
proceeding in response on 17 june 2010 on 20 december 2010 
astrazeneca received a notice of allegation from pms in respect of 
the ’251 patent astrazeneca is evaluating the allegations pms  
has not addressed the ’955 patent
in september 2010 astrazeneca received a notice of allegation 
from teva canada limited teva in respect of the ’305 patent listed 
on the canadian patent register for atacand plus teva withdrew 
its notice of allegation on 17 november 2010 and in response 
on 30 november 2010 astrazeneca discontinued its application 
responding to teva’s notice of allegation
crestor rosuvastatin calcium
patent litigation – us
us patent no re 37314 the ’314 patent
as previously reported in 2007 and 2008 astrazeneca and 
astrazeneca’s licensor shionogi seiyaku kabushiki kaisha shionogi 
together the plaintiffs filed lawsuits in the us district court for the 
district of delaware against various parents or subsidiaries of eight 
generic anda filers for infringement of the ’314 patent the patent 
covering rosuvastatin calcium the active ingredient in crestor tablets
on 3 march 2010 judge joseph farnan in the us district court 
for the district of delaware completed the trial of the consolidated 
matter following the trial on 26 march 2010 the court approved 
and signed the stipulation and consent order of the plaintiffs and 
codefendants aurobindo pharma ltd and aurobindo pharma usa 
inc whereby aurobindo pharma ltd consented to jurisdiction and 
venue aurobindo pharma usa inc agreed to be bound by any 
judgment against aurobindo pharma ltd and the plaintiffs agreed in 
exchange to dismiss the action against aurobindo pharma usa inc
in june 2010 the court issued a decision finding infringement and 
rejecting the defendants’ arguments of invalidity and unenforceability 
with respect to the ’314 patent in august 2010 the defendants filed 
notices of appeal to the us court of appeals for the federal circuit 
the defendants filed their opening briefs with the appellate court in 
december 2010
for trial the court retained jurisdiction over apotex corp which 
participated in the trial however the court transferred the 
infringement matter as it pertained to codefendant apotex inc 
to the us district court for the southern district of florida the 
florida court stayed the apotex inc case pending the outcome of 
the appeal to the federal circuit
in may 2010 astrazeneca received a paragraph iv certification 
noticeletter from glenmark generics inc usa formerly glenmark 
pharmaceuticals inc usa glenmark challenging the ’314 patent 
in june 2010 the plaintiffs filed a patent infringement action against 
glenmark in the us district court for the district of delaware on 
15 november 2010 the court approved the parties’ stipulation and 
proposed order requesting the court to enter judgment in favour of 
the plaintiffs and to stay the glenmark action in its entirety as part 
of the stipulation glenmark conceded infringement of the ’314 patent 
and agreed to be bound by the court’s june 2010 decision 
the parties also agree to be bound by the results of any subsequent 
appeal in the plaintiffs’ other crestor anda litigation which found 
the ’314 patent valid and enforceable
505b2 nda for rosuvastatin zinc tablets the ’314 patent
in september 2010 astrazeneca received a paragraph iv certification 
noticeletter from watson laboratories inc informing astrazeneca 
of the filing of its section 505b2 nda for rosuvastatin zinc tablets 
and challenging the ’314 patent and the crestor formulation patent 
us patent no 6316460 the ’460 patent on 26 october 2010 
astrazeneca and shionogi together the plaintiffs commenced a 
patent infringement action in the us district court for the district of 
delaware the delaware action against watson pharmaceuticals 
inc watson pharma inc watson laboratories inc and other 
related entities for infringement of the ’314 patent on 10 november 
2010 for jurisdictional reasons the plaintiffs filed a duplicate 
protective lawsuit in the us district court for the district of nevada 
the nevada action against watson pharmaceuticals inc watson 
pharma inc and watson laboratories inc on 23 december 2010 
pursuant to the parties’ joint stipulation in the delaware action 
setting forth the agreement of watson laboratories inc to personal 
jurisdiction in the district of delaware and other admissions 
conditions and agreements the court dismissed all of the watson 
codefendants without prejudice except watson laboratories inc 
watson pharmaceuticals inc watson pharma inc watson 
laboratories inc and other named watson entities were 
dismissed without prejudice from the delaware action in  
january 2011 astrazeneca dismissed the nevada action
us patent nos 6858618 the ’618 patent  
and 7030152 the ’152 patent
in april 2010 astrazeneca commenced new patent infringement 
actions involving crestor in the us district court for the district of 
delaware based on the ’618 and ’152 patents later in april 2010 
astrazeneca amended nine complaints adding a coplaintiff 
the brighams  women’s hospital bwh astrazeneca’s licensor 
of the ’152 patent to the suits in these new infringement actions 
astrazeneca and bwh together the plaintiffs allege that the 
defendants’ original filings or amendments of andas seeking 
approval to market generic rosuvastatin calcium tablets prior to the 
expiration of these patents infringe the ’618 and ’152 patents under 
35 usc §271e2 the ’618 and ’152 patents which astrazeneca 
lists in the fda’s orange book relate respectively to the use of 
rosuvastatin calcium for primary prevention of cardiovascular disease 
and the treatment of heterozygous familial hypercholesterolemia 
hefh astrazeneca obtained fda approval for the use of crestor 
tablets for primary prevention of cardiovascular disease in february 
2010 and for paediatric treatment of hefh in october 2009  
the new infringement actions were brought against a aurobindo 
pharma ltd aurobindo pharma usa inc together aurobindo b 
apotex corp c cobalt pharmaceuticals inc cobalt laboratories 
inc together cobalt d par pharmaceuticals inc e sandoz inc 
sandoz f mylan pharmaceuticals inc g sun pharmaceutical 
industries ltd sun pharmaceutical industries inc caraco 
pharmaceutical laboratories ltd together sun and h teva 
pharmaceuticals usa inc these eight defendant groups were 
also defendants in the ’314 patent litigation described above in 
addition astrazeneca commenced a first patent infringement 
action against glenmark generics inc usa
25 commitments and contingent liabilities continued astrazeneca annual report and form 20f information 2010 184 financial statements
financial statements
in may 2010 astrazeneca received a paragraph iv certification 
noticeletter from torrent pharmaceuticals limited torrent 
pharmaceuticals challenging the ’460 patent the formulation 
patent in july 2010 the plaintiffs filed a patent infringement action 
against torrent pharmaceuticals and torrent pharma inc together 
torrent in the us district court for the district of delaware based 
on the ’618 and ’152 patents torrent did not challenge the ’314 
patent in its paragraph iv noticeletter
in july and august 2010 all of the defendants except sandoz filed 
motions to dismiss for lack of subject matter jurisdiction and failure 
to state a claim
in november 2010 the court approved a stipulation and proposed 
order of the plaintiffs and torrent jointly requesting the court to stay 
the torrent action as part of the stipulation torrent agrees to be 
bound by the results of the first final decision and any appeals of 
that decision as prosecuted by the remaining defendants
in december 2010 the court granted the motions to dismiss and 
dismissed the infringement actions for lack of subject matter 
jurisdiction the court also ordered the plaintiffs to show cause why 
the claims against sandoz the sole nonmovant should not also 
be dismissed in 2011 the plaintiffs filed notices of appeal to the 
us court of appeals for the federal circuit in january 2011 the 
plaintiffs and sandoz also filed a joint response to the show cause 
order requesting that the sandoz action be stayed until after the 
federal circuit renders its decision on the appeals or alternatively 
dismisses it without prejudice
patent litigation – canada
in 2008 astrazeneca received notices of allegation from novopharm 
limited now teva canada limited teva and apotex inc 
apotex respectively regarding canadian patent nos 2072945 
the ’945 patent and 2313783 the ’783 patent listed on the 
canadian patent register for crestor astrazeneca commenced 
proceedings in response the canadian federal court conducted 
consecutive hearings on the two matters beginning on 22 march 
2010 and 29 march 2010 respectively in july 2010 astrazeneca 
reached comprehensive settlement agreements with each of  
teva and apotex to resolve litigation between them as part of the 
agreements teva and apotex may enter the canadian market in 
april 2012 or earlier in certain circumstances the canadian 
substance patent expires in july 2012
in 2009 astrazeneca received a notice of allegation from cobalt 
pharmaceuticals inc cobalt in respect of the ’945 and ’783 patents 
in november 2010 astrazeneca reached a comprehensive settlement 
agreement with cobalt resolving the litigation and as part of the 
agreement cobalt may enter the canadian market in april 2012 or 
earlier in certain circumstances the canadian substance patent 
expires in july 2012
also in 2009 astrazeneca received a notice of allegation from 
sandoz canada inc sandoz in respect of the ’945 and ’783 patents 
in january 2011 astrazeneca reached a comprehensive settlement 
agreement resolving the litigation and as part of the agreement 
sandoz may enter the canadian market in april 2012 or earlier 
in certain circumstances
in august 2009 astrazeneca received a notice of allegation from 
ratiopharm inc ratiopharm with respect to the ’945 and ’783 patents 
astrazeneca commenced an application in response in august 
2010 astrazeneca discontinued the application as a result of teva’s 
acquisition of ratiopharm
in february 2010 astrazeneca received a notice of allegation from 
pharmascience inc pharmascience in respect of the ’945 and ’783 
patents pharmascience alleges that the ’945 and ’783 patents are 
not infringed and are invalid astrazeneca commenced an application 
in response in april 2010
in july 2010 astrazeneca received a notice of allegation from 
ranbaxy pharmaceuticals canada inc ranbaxy regarding the 
’945 patent the ’783 patent and canadian patent no 2315141 
the ’141 patent ranbaxy alleges certain of the claims of the ’945 
’783 and ’141 patents are not infringed and that the patents are invalid 
astrazeneca commenced an application in response in august 2010
in august 2010 astrazeneca received a notice of allegation from 
mylan pharmaceuticals ulc mylan regarding the ’945 ’783 and ’141 
patents mylan alleges certain of the claims of the ’945 ’783 and ’141 
patents are not infringed and that the patents are invalid astrazeneca 
commenced an application in response in september 2010
patent litigation – eu
in portugal a preliminary injunction request was filed with the 
lisbon administrative court of first instance in may 2010 seeking 
a suspension of the effect of decisions taken by administrative bodies 
in portugal to grant teva pharma lda teva marketing authorisations 
for generic rosuvastatin calcium and to prevent the approval of the 
retail price a similar preliminary injunction request was filed with 
respect to sandoz farmaceutica lda in june 2010 in october 2010 
the court granted the preliminary injunction request to suspend the 
effect of the decisions taken by the administrative bodies in portugal 
to grant teva marketing authorisation for generic rosuvastatin the 
decision has been appealed by the administrative body infarmed 
and by teva in november 2010 the court granted the preliminary 
injunction request to suspend the marketing authorisations for 
generic rosuvastatin granted to sandoz farmaceutica lda the 
decision has been appealed by infarmed in november 2010 the court 
granted the preliminary injunction request to suspend the marketing 
authorisations for generic rosuvastatin granted to hexal ag the 
decision has been appealed by infarmed corresponding main actions 
have been initiated regarding all the above mentioned matters
patent litigation – brazil
torrent do brasil torrent launched its generic versions of crestor in 
early october 2010 and astrazeneca filed a request for a preliminary 
injunction on 13 october 2010 the court of first instance granted the 
requested injunction and ordered torrent to discontinue the sale and 
marketing of these generic products in brazil and to recall products 
already on the market torrent appealed the decision the effects 
of the preliminary injunction were suspended by the court of first 
instance until the decision by the court of appeal the court of 
appeal is likely to make its decision in the first quarter of 2011
other us patent litigation
in october 2010 in the teva pharmaceuticals industries ltd teva 
patent infringement lawsuit against astrazeneca with regard to 
crestor the us district court for the eastern district of pennsylvania 
granted astrazeneca’s motion for summary judgment invalidating 
teva’s patent based on prior inventorship astrazeneca thereafter filed 
a motion for attorneys’ fees which was denied by the court without 
prejudice pending teva’s appeal which it filed in november 2010
entocort ec budesonide
in 2008 astrazeneca initiated patent infringement actions against 
barr laboratories inc barr and mylan pharmaceuticals inc 
mylan for infringement of us patent nos 6423340 the ’340 
patent and 5643602 the ’602 patent in the us district court for 
the district of delaware
in may 2010 astrazeneca entered into a settlement agreement with 
barr acquired by teva pharmaceutical industries ltd in 2009 now 
teva under the terms of the agreement astrazeneca has granted 
teva a licence to enter the us market with its generic version of oral 
budesonide on 15 february 2012 subject to regulatory approval 
also in may 2010 astrazeneca proceeded to trial against mylan 
before judge gregory sleet on the sole issue of infringement of the 
’602 patent the court has reserved judgment
25 commitments and contingent liabilities continued astrazeneca annual report and form 20f information 2010 financial statements 185
corporate governance additional information financial statements overview business review
faslodex fulvestrant
patent litigation – us
in 2009 astrazeneca received a paragraph iv certification notice
letter from teva parenteral medicines inc teva parenteral informing 
astrazeneca that it had filed an anda to market a generic form of 
faslodex before the expiration of the orange book listed patents 
covering faslodex in january 2010 astrazeneca filed a patent 
infringement lawsuit against teva parenteral teva pharmaceuticals 
usa inc and teva pharmaceutical industries ltd together teva 
in the us district court for the district of delaware for infringement 
of us patent nos 6774122 and 7 456160 the case was assigned 
to judge joel pisano sitting by designation due to judicial vacancy 
in the district of delaware on 24 december 2010 teva advised 
astrazeneca that it had requested the fda to withdraw its anda 
without prejudice to refile the court has stayed the litigation to permit 
the parties to resolve the matter pending the fda’s acknowledgement 
of the withdrawal
iressa gefitinib
between 2004 and 2008 seven claims were filed against 
astrazeneca in japan in the osaka and tokyo district courts 
in these claims it is alleged that iressa caused a fatal incidence of 
interstitial lung disease in a japanese patient astrazeneca believes 
the claims are without merit and has defended all the cases 
decisions are expected from the courts in the first quarter of 2011
losecprilosec omeprazole
patent litigation – us
as previously reported by 2006 astrazeneca had initiated patent 
infringement actions in the us district court for the southern district 
of new york against several generic companies and their suppliers all 
alleging infringement of astrazeneca’s patents relating to omeprazole 
as previously reported following trials against numerous defendants 
in 2007  the district court upheld both formulation patents covering the 
prilosec omeprazole product and ruled that the generic omeprazole 
formulations of impax laboratories inc impax manufacturers of 
the generic product distributed in the us by teva pharma ltd teva 
and apotex corp and apotex inc together apotex group 
infringed astrazeneca’s patents the court found that the generic 
products sold by lek pharmaceutical and chemical company dd 
and lek services usa inc together lek mylan pharmaceuticals 
inc and mylan inc together mylan and laboratorios esteve sa 
and esteve quimica sa together esteve did not infringe 
astrazeneca’s patents in 2008 the us court of appeals for the 
federal circuit upheld the rulings that mylan and esteve did not 
infringe the federal circuit also upheld that the generic 
omeprazole formulations of impax and apotex group infringed 
astrazeneca’s patents in january 2010 astrazeneca settled with 
impax and teva for their infringing commercial sales obtaining a 
onetime payment for past infringement in 2010 astrazeneca 
continued efforts to recover infringement damages and other 
remedies against andrx pharmaceuticals inc and apotex group
patent litigation – canada
astrazeneca continues to be involved in proceedings in canada 
involving various patents relating to omeprazole capsules and 
omeprazole magnesium tablets apotex inc launched a generic 
omeprazole capsule product in canada in january 2004
in 2006 astrazeneca was served with a claim in the federal court 
of canada for payment of an undetermined sum based on damages 
allegedly suffered by apotex inc due to the delay from january  
2002 to january 2004 in the issuance to apotex inc of a notice of 
compliance for its 20mg omeprazole capsule product astrazeneca 
believes the claim is without merit and is defending it as well as 
continuing to vigorously pursue its already pending patent 
infringement action against apotex inc
in may 2010 the federal court scheduled the trial for the pending 
matters to be heard concurrently commencing in march 2012
european commission case
in july 2010 the general court of the european union the general 
court handed down its judgment in astrazeneca’s appeal against 
the european commission’s 2005 decision fining astrazeneca  
€60m for abuse of a dominant position regarding omeprazole  
the general court upheld most of the european commission’s 
arguments but reduced the fine to €525m as it said that the 
european commission’s case had not been proven in relation to 
denmark and norway the fine was paid in 2005 in accordance 
with the original decision and €7 5m plus interest has been repaid to 
astrazeneca astrazeneca was ordered to pay 90 of the european 
commission’s costs and the european commission was ordered 
to pay 10 of astrazeneca’s costs astrazeneca has appealed  
the general court’s judgment in relation to market definition  
that astrazeneca’s behaviour was abusive even if astrazeneca  
was dominant at the time and the level of fine the european 
commission has cross appealed the general court’s judgment 
regarding denmark and norway it is possible that third parties 
could seek damages for alleged losses arising from this matter 
any such claims would be vigorously resisted
nexium esomeprazole magnesium
sales and marketing practices
astrazeneca entities have been sued in various state and federal 
courts in the us in purported representative class actions involving 
the marketing of nexium these actions generally allege that 
astrazeneca’s promotion and advertising of nexium to physicians 
consumers and third party payers was unfair unlawful and deceptive 
particularly as the promotion relates to comparisons of nexium with 
prilosec some of the cases also allege that astrazeneca’s conduct 
relating to the pricing of nexium was unfair unlawful and deceptive 
the plaintiffs allege claims under various state consumer protection 
unfair practices and false advertising laws the plaintiffs in these cases 
seek remedies that include restitution disgorgement of profits 
damages punitive damages injunctive relief attorneys’ fees and 
costs of suit
the first action was brought in 2004 in california state court on 
behalf of a class of californian consumers and thirdparty payers 
lawsuits making substantially similar allegations were later filed in 
2004 and 2005 in state courts in arkansas florida massachusetts 
and delaware and in the delaware federal court
the florida and arkansas cases have been dismissed at the trial 
court level both of those dismissals were affirmed on appeal and 
no further appeal is possible similarly in may 2010 the delaware 
federal court dismissed the complaint for failure to state a claim 
and the plaintiffs did not appeal
in march 2009 the california trial court granted astrazeneca’s 
motions for summary judgment and denied plaintiffs’ motion for 
class certification that decision was appealed in august 2010 
the california court of appeal affirmed the trial court’s orders denying 
class certification and granting summary judgment in favour of 
astrazeneca in an unpublished decision the time for further appeals 
has lapsed
in july 2010 the massachusetts trial court entered an order granting 
plaintiffs’ motion to certify a class of massachusetts purchasers of 
nexium denying astrazeneca’s motion for summary judgment as 
to two plaintiffs and granting astrazeneca’s motion for summary 
judgment as to one plaintiff astrazeneca filed a petition for 
discretionary interlocutory review of those rulings which was 
denied by a single justice of the massachusetts appeals court in 
september 2010
25 commitments and contingent liabilities continued astrazeneca annual report and form 20f information 2010 186 financial statements
financial statements
the delaware state case in superior court has been stayed since 
may 2005 in favour of the delaware federal court case in august 
2010 the plaintiffs filed a request to lift the stay based on the final 
resolution of the delaware federal case and to enter a scheduling 
order setting deadlines for the plaintiffs to file an amended complaint 
and for the briefing of astrazeneca’s expected motion to dismiss 
the delaware superior court has not yet acted on the plaintiffs’ 
request and the case remains stayed
patent litigation – us
in 2008 astrazeneca entered into a settlement agreement and 
consent judgment with ranbaxy pharmaceuticals inc and ranbaxy 
laboratories limited together ranbaxy to settle the ranbaxy 
anda patent litigation ranbaxy was the first to file a paragraph iv 
certification noticeletter in respect of nexium patents listed in the 
fda’s orange book the settlement agreement allows ranbaxy 
to commence sales of a generic version of nexium under a licence 
from astrazeneca on 27 may 2014
in 2006 in response to a paragraph iv certification noticeletter from 
ivax pharmaceuticals inc stating that ivax corporation together 
ivax group had submitted an anda for approval to market 20 
and 40mg esomeprazole magnesium delayedrelease capsules 
astrazeneca commenced patent infringement litigation in the us 
district court for the district of new jersey against ivax group 
its parent teva pharmaceutical industries ltd and their affiliates 
together teva group in 2008 the court granted astrazeneca’s 
motion to add cipla ltd as a defendant in the ivax groupteva 
group litigation
in 2007  astrazeneca received a paragraph iv certification notice
letter from dr reddy’s laboratories ltd and dr reddy’s laboratories 
inc together drl stating that drl had submitted an anda for 20 and 
40mg esomeprazole magnesium delayedrelease capsules in 2008 
astrazeneca commenced patent infringement litigation in the us 
district court for the district of new jersey against drl in response 
to drl ’s anda and paragraph iv certifications regarding nexium
in 2008 astrazeneca ivax group and drl filed declaratory 
judgment suits in the us district court for the district of new jersey 
for patents that were not previously included in the ongoing nexium 
patent infringement litigations
in january 2010 astrazeneca entered into an agreement to settle 
the ivax groupteva group litigation teva group conceded that 
all patentsatissue in its us nexium patent litigations are valid and 
enforceable teva group also conceded that its anda product would 
infringe six of the nexium patentsinsuit astrazeneca granted teva 
group a licence for its anda product to enter the us market subject 
to regulatory approval on 27 may 2014 this market entry date and 
the settlement are consistent with astrazeneca’s prior settlement 
with ranbaxy as a result of settlement and entry of a consent 
judgment the litigation against ivax groupteva group and cipla ltd 
has been dismissed in january 2010 as part of the settlement 
between astrazeneca and ivax group the 2008 declaratory 
judgment actions involving ivax group were also dismissed
in january 2011 astrazeneca entered into an agreement to settle 
the drl litigation drl conceded that the patentsatissue in its us 
nexium patent litigations are valid and enforceable with reference 
to drl ’s us esomeprazole magnesium anda product drl also 
conceded that its anda product would infringe three nexium 
patentsinsuit astrazeneca granted drl a licence for its anda 
product to enter the us market subject to regulatory approval 
on 27 may 2014 this market entry date and the settlement are 
consistent with astrazeneca’s settlement with ranbaxy and the 
january settlement with the ivax group teva pharmaceutical ltd 
and their affiliates as a result of the drl settlement and  
entry of a consent judgment the drl litigation was dismissed  
as part of the settlement drl ’s declaratory judgment actions  
were also dismissed
in january 2010 astrazeneca received a paragraph iv certification 
noticeletter from sun pharma global fze and its affiliates together 
sun stating that sun had filed an anda and notifying of sun’s 
challenge to patents listed in the fda’s orange book in reference to 
nexium iv in february 2010 astrazeneca filed suit against sun in 
the us district court for the district of new jersey in august 2010 
upon astrazeneca’s motion magistrate judge bongiovanni stayed 
the sun litigation in december 2010 among other actions the court 
vacated the stay and referred the matter back to magistrate judge 
bongiovanni for a scheduling conference no trial date has been set 
in the sun patent litigation
in 2008 astrazeneca received a paragraph iv certification notice
letter from sandoz inc sandoz stating that sandoz had submitted 
an anda for approval to market 20 and 40mg esomeprazole 
magnesium delayedrelease capsules in 2009 astrazeneca 
commenced patent infringement litigation in the us district court 
for the district of new jersey in july 2009 the court stayed the 
sandoz patent infringement litigation until after trial in the above 
referenced drl nexium patent infringement litigation no trial date 
has been set in the sandoz patent infringement litigation
in september 2009 astrazeneca received a paragraph iv 
certification noticeletter from lupin limited lupin stating that 
lupin had submitted an anda for approval to market 20 and 40mg 
esomeprazole magnesium delayedrelease capsules relating to 
patents listed in the fda’s orange book with reference to nexium 
in october 2009 astrazeneca commenced patent infringement 
litigation against lupin in the us district court for the district of  
new jersey in march 2010 the court stayed the lupin patent 
infringement litigation until after trial in the drl nexium patent 
infringement litigation no trial date has been set in the lupin  
patent litigation
in december 2010 astrazeneca received a paragraph iv certification 
noticeletter from hanmi usa inc hanmi stating that it had submitted 
an nda under section 505b2 for fda approval to market 20 
and 40mg esomeprazole strontium capsules hanmi alleges 
noninfringement or invalidity of 11 patents listed in the fda’s orange 
book with reference to nexium astrazeneca is evaluating hanmi’s 
notice and certifications
patent litigation – canada
astrazeneca received several notices of allegation from apotex inc 
apotex in 2007 in respect of patents listed on the canadian patent 
register for nexium astrazeneca responded by commencing seven 
applications in 2008 under the patented medicines notice of 
compliance regulations
in june 2010 after a hearing the federal court of canada dismissed 
astrazeneca’s application to prohibit the minister of health from 
issuing a notice of compliance marketing authorisation for generic 
esomeprazole magnesium to apotex and apotex received its 
marketing authorisation in june 2010 in october 2010 astrazeneca 
commenced a patent infringement action against apotex alleging 
infringement of five canadian patents related to nexium
as previously reported in 2009 astrazeneca received a notice 
of allegation from mylan pharmaceuticals ulc astrazeneca 
commenced an application in response in january 2010 a hearing 
has been set for 24 october 2011
in september 2010 astrazeneca received several notices of 
allegation from pharmascience inc in respect of the patents listed on 
the canadian patent register for nexium astrazeneca commenced 
applications in response in october 2010
in october 2010 astrazeneca received a notice of allegation 
from ranbaxy pharmaceuticals canada inc ranbaxy in respect 
of the patents listed on the canadian patent register for nexium 
astrazeneca commenced a proceeding in response in 
december 2010
25 commitments and contingent liabilities continued astrazeneca annual report and form 20f information 2010 financial statements 187
corporate governance additional information financial statements overview business review
patent litigation – brazil
astrazeneca has filed two law suits before the federal courts of 
brasilia seeking judicial declaration to confirm that all conditions 
established in the traderelated aspects of intellectual property 
rights agreement have been satisfied and thereby entitling 
astrazeneca to exclusive marketing rights for nexium to july 2012 
the court rejected one suit in 2008 and the other one on 1 may 2010 
astrazeneca has appealed both decisions and the federal court 
of appeals is expected to issue decisions on the merits by the middle 
of 2011
patent litigation – eu
most major european markets belgium france italy luxembourg 
the netherlands germany sweden and the uk had regulatory data 
protection for nexium until 10 march 2010 and other markets had six 
years regulatory data protection to date there are generic products 
in several 6year countries and in germany sweden and the 
netherlands among the 10year countries
patent litigation – eu 10year countries
in july 2010 consilient health limited consilient was granted 
marketing approval in the uk for a generic esomeprazole product 
manufactured by krka dd novo mesto krka in slovenia 
astrazeneca initiated infringement proceedings against consilient 
and krka on 8 september 2010 consilient and krka agreed not to 
launch their generic esomeprazole product pending the outcome of 
the main infringement case astrazeneca has undertaken to be liable 
for losses of the defendants and third parties if the injunction is 
lifted at a later date the trial will not be held before 3 october 2011
in october 2010 astrazeneca was served an invalidity case in which 
ranbaxy uk ltd claimed that the nexium esomeprazole magnesium 
patent ep 1020461 and the esomeprazole magnesium trihydrate 
patent ep 0984957 are invalid in the uk ranbaxy uk ltd further 
requested the court to confirm that its generic esomeprazole product 
does not infringe either patent if launched in the uk the trial of the 
noninfringement part will not be held before may 2011 the invalidity 
part has been stayed pending the noninfringement trial
in germany krka dd novo mesto tad pharma gmbh 
abzpharma gmbh ct arzneimittel gmbh ratiopharm gmbh and 
teva gmbh launched generic esomeprazole magnesium products 
during september and october 2010 in october 2010 astrazeneca 
filed requests for preliminary injunctions to restrain said companies 
from marketing and selling these products in germany in november 
2010 astrazeneca added hexal ag and sandoz pharmaceuticals 
gmbh as defendants the trial was held on 10 december 2010 
and the court rejected the request for preliminary injunctions on 
17 december 2010 the decision has not yet been published 
astrazeneca has four weeks from the date of publication to 
determine whether it will appeal in november 2010 astrazeneca 
was served with a law suit filed by ethypharm sa claiming that 
the two nexium cloud point patents ep 0984773 and ep 1124539 
are invalid in germany
in sweden astrazeneca filed a request for an interlocutory injunction 
on 26 october 2010 against krka sverige ab to restrain this company 
from marketing and selling its generic esomeprazole magnesium 
product in sweden in january 2011 astrazeneca was served with 
a lawsuit filed by ratiopharm gmbh and ratiopharm ab claiming that 
the nexium esomeprazole magnesium patent ep 1020461 is invalid 
in sweden
in the netherlands sandoz bv and hexal ag both in the sandoz 
group and stada arzneimittel ag and centrafarm services bv 
both in the stada group filed lawsuits in june 2010 in accelerated 
proceedings claiming that the nexium esomeprazole magnesium 
patent ep 1020461 is invalid in the netherlands the trials were 
held on 14 january 2011 the decision has not yet been published
in italy eg spa a company in the stada group filed a law suit in 
june 2010 claiming that the nexium esomeprazole magnesium patent 
ep 1020461 is invalid in italy astrazeneca has added a counterclaim 
of infringement an initial hearing was held on 23 november 2010
in france ratiopharm gmbh and laboratoire ratiopharm sa filed 
a law suit against astrazeneca on 18 august 2010 claiming that the 
nexium esomeprazole magnesium patent ep 1020461 is invalid in 
france ethypharm sa filed a law suit against astrazeneca in august 
2010 claiming that the nexium esomeprazole magnesium patent 
ep 1020461 and the cloud point patent ep 1124539 are invalid in 
france the next hearing in these cases will be on 17 march 2011
in belgium astrazeneca was served in october 2010 with a 
revocation action by teva pharmaceutical industries ltd and teva 
pharma belgium nv claiming that the nexium esomeprazole 
magnesium patent ep 1020461 is invalid in belgium the next 
hearing is scheduled for 23 september 2011
patent litigation – eu 6year countries
in denmark sandoz as sandoz launched its generic product 
in june 2009 and astrazeneca filed a request for a preliminary 
injunction in the same month in january 2010 the court granted 
astrazeneca a preliminary injunction preventing sandoz from 
continuing to sell the products based on an infringement of a nexium 
esomeprazole magnesium patent ep 1020461 sandoz appealed 
this decision and the appeal will be heard on 22 to 25 february 2011 
in march 2010 the court granted a preliminary injunction based on 
infringement of a nexium process patent ep 0773940 sandoz 
appealed this decision and the appeal was heard on 17 to 24 
january 2011 the decision will be announced on 28 february 2011 
in july 2010 astrazeneca filed an application with the district court 
of copenhagen seeking an interlocutory injunction to restrain krka 
sverige ab from selling and marketing its generic esomeprazole 
magnesium products in denmark the hearing took place in 
november 2010 on 10 december 2010 the court denied 
astrazeneca’s request for a preliminary injunction astrazeneca 
has appealed this decision
in austria hexal pharma gmbh and 1a pharma gmbh both in the 
sandoz group launched generic products in october 2009 requests 
for preliminary injunctions were filed in december 2009 preliminary 
injunctions have been granted by the vienna commercial court 
against hexal pharma gmbh on 10 march 2010 and against 1a 
pharma gmbh on 11 march 2010 the decisions were appealed 
by the sandoz companies the higher regional court of vienna 
upheld the injunction against 1a pharma gmbh in july 2010 and 
against hexal pharma gmbh in september 2010 in december 
2010 the supreme court rejected 1a pharma gmbh’s request for 
extraordinary appeal in july 2010 astrazeneca filed an application 
for a preliminary injunction to be granted against krka pharma gmbh 
and krka dd novo mesto in october 2010 the vienna commercial 
court granted the preliminary injunction against krka pharma gmbh 
this decision has been appealed by krka pharma gmbh the case 
is still pending against krka dd novo mesto on 29 november 2010 
a similar request for a preliminary injunction was filed with the vienna 
commercial court against ratiopharm arzneimittel vertriebsgmbh
in july 2008 astrazeneca initiated a declaratory action in finland 
requesting the district court of helsinki to confirm that sandoz as 
and sandoz as would infringe a patent relating to esomeprazole if 
they were to commercialise their generic esomeprazole product in 
finland in september 2008 hexal ag sandoz oy ab and sandoz 
as all in the sandoz group initiated an invalidity case requesting 
the court to invalidate the same patent these cases will be heard 
jointly and were scheduled to be heard in september 2010 the 
hearing has been postponed to a date to be determined later
25 commitments and contingent liabilities continued astrazeneca annual report and form 20f information 2010 188 financial statements
financial statements
astrazeneca initiated similar declaratory actions in finland at the 
district court of helsinki against ranbaxy uk limited in december 
2009 against mylan ab in march 2010 against stada arzneimittel 
ag in april 2010 and against teva sweden ab on 17 january 2011 
requesting an order that these companies would infringe a patent 
relating to esomeprazole if they were to commercialise their generic 
products in finland
in portugal astrazeneca filed a request in august 2009 with the 
lisbon administrative court of first instance seeking a preliminary 
injunction and initiating a main action in the administrative courts 
astrazeneca has filed the request to seek a suspension of the 
effect of decisions taken by administrative bodies in portugal to 
grant sandoz farmacêutica limitada marketing authorisations for 
generic esomeprazole magnesium products in october 2009 the 
court granted astrazeneca a preliminary injunction suspending the 
efficacy of the marketing authorisations and the price approvals for 
sandoz farmacêutica limitada’s generic esomeprazole magnesium 
products the decision was appealed by the portuguese authorities 
in a decision on 22 december 2010 the court upheld the preliminary 
injunction in january 2010 mepha ag and mepha investigacao 
fabricacao farmacêutica limitada filed a nullity action to revoke 
the esomeprazole magnesium patent ep 1020461 for nexium 
in february 2010 astrazeneca filed a similar request for a preliminary 
injunction regarding the marketing approval for mepha farmacêutica 
limitada the preliminary request was denied by the court in june 
2010 astrazeneca has appealed this decision
during 2009 lek farmacevtska druzba dd a company within 
the sandoz group lek initiated an invalidity case regarding two 
esomeprazole related patents in slovenia astrazeneca filed a request 
for an interlocutory injunction in january 2010 against lek to restrain 
this company from commercialising manufacturing and selling 
products containing esomeprazole magnesium in slovenia 
the interlocutory injunction was granted in june 2010 lek appealed 
in july 2010 and in september 2010 the appeal court upheld the 
injunction in july 2010 astrazeneca filed an application with the 
district court of ljublijana in slovenia seeking an interlocutory 
injunction to restrain krka dd novo mesto from manufacturing and 
selling generic esomeprazole magnesium products on 20 october 
2010 the court rejected the request for an injunction astrazeneca 
appealed this decision on 28 october 2010
in spain astrazeneca filed a request for a preliminary injunction in 
april 2010 against sandoz farmacéutica sa bexal farmacéutica 
sa and acost comercial genericpharma sl all in the sandoz 
group to restrain the companies from selling their generic 
esomeprazole magnesium products in spain in may 2010 the 
court of barcelona granted astrazeneca a preliminary injunction 
against these sandoz companies a hearing in court took place in 
july 2010 six days later the court revoked the preliminary injunction 
astrazeneca has appealed
in poland astrazeneca filed in may 2010 a request for an interlocutory 
injunction against lek farmacevtska druzba dd and sandoz gmbh 
both in the sandoz group to restrain them from manufacturing 
using and selling their generic esomeprazole magnesium product 
in poland in june 2010 the application was granted regarding 
commercialising the product astrazeneca has appealed to have the 
injunction extended to manufacturing and lek and sandoz appealed 
in august 2010 in november 2010 the appeal court denied both 
appeals and thereby confirmed the interlocutory injunction
in ireland astrazeneca initiated a main action in august 2010 against 
krka dd novo mesto and pinewood laboratories ltd claiming that 
the sale and marketing of their generic esomeprazole magnesium 
products infringes the nexium esomeprazole magnesium patent 
ep 102046
in estonia astrazeneca filed a request for an interlocutory injunction 
in june 2010 against krka dd novo mesto krka to restrain this 
company from commercialising its magnesium esomeprazole 
product in estonia in july 2010 the court granted the requested 
interlocutory injunction krka appealed in september 2010 
the appeal court rejected the appeal and upheld the injunction 
krka dd novo mesto filed an appeal with the supreme court 
which denied leave to appeal in july 2010 astrazeneca filed 
a similar request for an interlocutory injunction against krka in 
lithuania in july 2010 the injunction was granted in september 
2010 krka appealed krka and zentiva ks have challenged 
nexium esomeprazole magnesium patents in courts in estonia 
latvia and lithuania in january 2011 zentiva ks waived its 
invalidity claim in lithuania
patent litigation – norway
in norway hexal ag sandoz as and sandoz as together 
sandoz initiated an invalidity case regarding two esomeprazole 
related patents in july 2008 in december 2009 the court of oslo 
invalidated a formulation patent while it upheld a substance patent 
related to esomeprazole both parties have appealed and the case 
was heard by the appeal court in january 2011 in september 
2010 astrazeneca filed a request for an interlocutory injunction 
against krka sverige ab to restrain the company from marketing 
and selling its generic esomeprazole magnesium product in 
norway in december 2010 the court granted astrazeneca’s 
application thereby prohibiting krka sverige ab’s commercialisation 
of its generic esomeprazole product in norway krka sverige ab 
has appealed this decision
patent proceedings
in july 2009 the european patent office epo published the grant 
of two patents that relate to nexium ep 1020461 and nexium iv 
ep 1020460 these two patents were granted on the basis of two 
divisional applications of european patent no 0652872 the parent 
patent the parent patent a substance patent covering nexium was 
revoked by the epo board of appeal in december 2006 following 
postgrant opposition and appeal proceedings the claims of 
ep 1020461 are different and narrower than the parent patent
the divisional applications were supported by new evidence that 
was not available at the time the epo board of appeal made its 
decision to revoke the parent patent the new patents are due to 
remain in force until may 2014 the claims of the esomeprazole 
magnesium divisional application are limited to preparations and 
uses thereof having a very high optical purity namely esomeprazole 
magnesium with an optical purity of equal to or greater than 998 
enantiomeric excess
the period for filing notices of opposition to the grant of these patents 
expired in april 2010 thirteen notices of opposition have been filed 
in relation to ep 1020461 and six notices of opposition in relation 
to ep 1020460 no hearing date has been set
european commission investigation
on 30 november 2010 the european commission commenced 
an investigation relating to certain alleged practices regarding 
nexium and dawn raided several astrazeneca sites the european 
commission is investigating whether astrazeneca may have acted 
individually or jointly to delay generic entry in alleged breach of 
articles 101 andor 102 of the treaty on the functioning of the 
european union which prohibit anticompetitive practices between 
third parties and abuse of a dominant position dawn raids are a 
preliminary step in investigating suspected anticompetitive 
practices the european commission is continuing its investigation 
astrazeneca remains of the view that the investigation is unfounded 
and that it has complied with all relevant competition laws 
astrazeneca has in accordance with its corporate policy cooperated 
with the european commission’s investigation astrazeneca will 
continue to cooperate with the european commission should it 
decide to take the matter further
25 commitments and contingent liabilities continued astrazeneca annual report and form 20f information 2010 financial statements 189
corporate governance additional information financial statements overview business review
dutch competition authority nexium    investigation
on 30 november 2010 the dutch competition authority nma 
commenced an investigation relating to alleged breach of article 24 of 
dutch competition law and article 102 of the treaty on the functioning 
of the european union the nma’s investigation relates to alleged 
foreclosure of generic versions of certain proton pump inhibitors 
ppis the nma is continuing its investigation astrazeneca remains of 
the view that the investigation is unfounded and that it has complied 
with all relevant competition laws astrazeneca has in accordance 
with its corporate policy cooperated with the nma’s investigation 
astrazeneca will continue to cooperate with the nma should it 
decide to take the matter further
federal trade commission ftc inquiry
in july 2008 astrazeneca received a civil investigative demand from 
the ftc seeking information regarding the nexium patent litigation 
settlement with ranbaxy uk limited astrazeneca is cooperating 
fully with the request
pulmicort respules budesonide inhalation suspension
in 2008 astrazeneca filed a lawsuit in the us district court for the 
district of new jersey against breath ltd now owned by watson 
pharmaceuticals watson for patent infringement resulting from an 
anda filed by watson seeking approval to market generic copies 
of pulmicort respules in the us prior to the expiration of 
astrazeneca’s patents
in 2009 astrazeneca filed a patent infringement lawsuit in the us 
district court for the district of new jersey against apotex inc and 
apotex corp together apotex group seeking declaratory 
judgments and injunctive relief following the fda’s approval of 
apotex group’s anda for a generic version of pulmicort respules 
in the us prior to the expiration of astrazeneca’s patents in may 
2009 due to concerns about apotex group’s intent to market its 
generic anda product astrazeneca obtained a preliminary 
injunction barring apotex group from launching its generic version  
of pulmicort respules until further order of the court in november 
2010 the court of appeals for the federal circuit affirmed the district 
court’s decision to issue a preliminary injunction apotex group has 
filed a petition in the court of appeals for rehearing en banc
in april 2009 astrazeneca listed in the fda’s orange book a newly 
issued us patent directed to sterile formulations of budesonide 
inhalation suspensions astrazeneca listed the new patent in the 
fda’s orange book referencing pulmicort respules astrazeneca 
amended its pleadings against apotex group and watson alleging 
infringement of the newly issued patent the litigation involving 
apotex group and watson has been consolidated under a common 
scheduling order in december 2010 the court scheduled a claim 
construction hearing to commence on 9 may 2011
in september 2010 astrazeneca received a paragraph iv certification 
noticeletter from sandoz inc notifying astrazeneca that it was 
seeking approval to market a generic version of 025 050 and 1mg 
doses of pulmicort respules prior to expiration of the patents covering 
pulmicort respules in november 2010 astrazeneca commenced 
patent infringement litigation against sandoz inc in the us district 
court for the district of new jersey
seroquel quetiapine fumarate
astrazeneca has made provisions in the year totalling 592m in 
respect of the ongoing seroquel product liability litigation and state 
attorney general investigations into sales and marketing practices 
in the aggregate
sales and marketing practices
as previously reported astrazeneca reached a civil settlement 
with the us attorney’s office department of justice and the state 
attorneys general national medicaid fraud control unit nmfcu 
to resolve an investigation relating to the marketing of seroquel 
pursuant to which astrazeneca paid to the united states federal 
government a fine of 302m plus accrued interest and to participating 
states a proportional share of up to 218m plus accrued interest 
in september 2010 astrazeneca entered into individual settlement 
agreements with 41 states and washington dc for an aggregate 
amount of approximately 210m
there are also a number of additional active investigations involving 
seroquel sales and marketing practices led by state attorneys general 
which include investigations relating to seroquel offlabel issues and 
which purport to cover issues in addition to the respective states’ 
participation in nmfcu astrazeneca has reached an agreement in 
principle to settle seroquelrelated state consumer protection and 
deceptive trade practice claims under state law with 37 states and 
washington dc as part of the national association of attorneys 
general and has recorded a provision for the agreed amount 
some states may also be conducting individual investigations
some states are separately suing astrazeneca as previously 
reported the commonwealth of pennsylvania and the states of 
arkansas montana new mexico south carolina mississippi and 
utah have sued astrazeneca under various state laws generally 
alleging that astrazeneca made false andor misleading statements 
in connection with the marketing and promotion of seroquel 
in december 2010 the state of alaska also sued astrazeneca 
making similar allegations in september 2010 the commonwealth of 
pennsylvania voluntarily dismissed its lawsuit and in december 2010 
a federal judge dismissed utah’s suit in its entirety and gave the state 
until 2 february 2011 to amend its complaint and refile astrazeneca 
believes that the remaining claims which are in various stages of 
litigation are without merit and intends to vigorously defend them
in may 2007 the new jersey ironworkers local union no 68 filed 
a class action suit against astrazeneca on behalf of all individuals 
and nongovernmental entities that paid for seroquel from january 
2000 to date the lawsuit was filed in the federal district court in 
new jersey and alleged that astrazeneca promoted seroquel for 
offlabel uses and misled class members into believing that seroquel 
was superior to other lowercost alternative medicines two similar 
class action lawsuits were filed in june and july 2007 in the new 
jersey and pennsylvania federal courts in december 2007  the three 
lawsuits were transferred to the middle district of florida by the us 
judicial panel on multidistrict litigation mdl in november 2008 
the mdl court granted astrazeneca’s motion and dismissed these 
cases in their entirety with prejudice the plaintiffs have appealed 
this decision astrazeneca intends to vigorously defend the appeal 
which was heard by the eleventh circuit court of appeals in february 
2010 and remains pending
in september 2008 the pennsylvania employees benefit trust fund 
pebtf served astrazeneca with a complaint filed in the pennsylvania 
court of common pleas of philadelphia county seeking economic 
damages stemming from allegedly improper marketing practices that 
caused the pebtf to reimburse for allegedly overpriced seroquel 
prescriptions and the medical care of pebtf members allegedly 
injured from seroquel use in october 2008 astrazeneca removed 
this lawsuit to the federal court and immediately requested that it 
be transferred to the seroquel mdl in july 2009 the mdl court 
dismissed pebtf’s complaint with prejudice pebtf elected to 
forego a federal appeal of that decision and instead pursued an 
appeal in the pennsylvania superior court on the dismissal of an 
earlierfiled state court action in august 2010 pebtf voluntarily 
dismissed its appeal to the pennsylvania superior court
25 commitments and contingent liabilities continued astrazeneca annual report and form 20f information 2010 190 financial statements
financial statements
product liability
astrazeneca either alone or in conjunction with one or more affiliates 
has been sued in numerous individual personal injury actions involving 
seroquel in most of these cases the nature of the plaintiffs’ alleged 
injuries is not clear from the complaint and in most cases little or no 
factual information regarding the alleged injury has been provided 
in the complaint however the plaintiffs generally contend that they 
developed diabetes andor other related injuries as a result of taking 
seroquel andor other atypical antipsychotic medications
astrazeneca has defended seroquel product liability litigation in 
federal courts including a multidistrict litigation mdl in the middle 
district of florida as well as in multiple state courts including 
delaware new york and new jersey courts where cases were 
consolidated in order to manage the large volume of claims pending 
in those jurisdictions
as of 31 december 2010 astrazeneca was aware of approximately 
3950 seroquel us product liability claims that have not been settled 
in principle see below the majority of these remaining claims are 
pending in new jersey and new york state courts although some 
claims are pending in a handful of other state courts and in the federal 
mdl some of the cases pending against astrazeneca also include 
claims against other pharmaceutical manufacturers such as eli lilly  
company janssen pharmaceutica inc andor bms at present trial 
dates remain pending in multiple jurisdictions including new jersey 
and new york beginning mid 2011 and continuing through 2012
there are four additional putative canadian class actions raising 
allegations that astrazeneca failed to provide adequate warnings 
in connection with an alleged association between seroquel and 
the onset of diabetes these actions have been filed in the canadian 
provinces of british columbia alberta ontario and quebec 
the quebec court dismissed the action and the petitioner’s appeal 
of that decision is scheduled for hearing in april 2011 a class 
certification hearing has been set in the ontario action for the week 
of 21 november 2011
in september 2010 the court presiding over the delaware seroquel 
litigation issued an opinion dismissing three cases on the basis that 
the claims were timebarred under the statute of limitations
the only case that has gone to trial resulted in a defence verdict 
in favour of astrazeneca the plaintiffs have appealed that verdict 
and the appeal is pending before the new jersey appellate court
in november 2009 judge anne conway who is presiding over the 
seroquel federal mdl ordered the parties to mediate their claims 
with a courtappointed mediator astrazeneca remains committed to 
a strong defence effort but will also continue to participate in good 
faith in the courtordered mediation process
as of 31 december 2010 the mediation process has resulted in 
agreements in principle on monetary terms subject to various 
subsequent conditions approvals and agreement on nonmonetary 
terms with the attorneys representing 24591 claimants the claims 
that have settled in principle include both claims that have been filed 
in the courts as well as claims that had not yet been filed the specific 
terms of those conditional agreements in principle are by agreement 
and at the request of the mediator confidential at this time written 
settlement agreements have been finalised in connection with 
18072 claims and payments have been made in connection with 
certain of those claims the parties are finalising written settlement 
agreements in respect of the other claims that have been resolved 
in principle the mediation process is ongoing with regard to other 
currently unsettled claims
a provision has been established in respect of the seroquel product 
liability claims regarding both current and anticipated future settlement 
costs as well as anticipated future defence costs associated with 
resolving all or substantially all remaining claims
the amount of this provision remains subject to a number of 
significant uncertainties and is based on astrazeneca’s best estimate 
of 1 the number of claims that are outstanding and may be subject 
to mediation 2 the financial terms of any future agreements to settle 
claims not subject to settlement agreements in principle at the balance 
sheet date and 3 the likely cost of defending those claims and 
finalising settlement agreements through to substantial completion 
each of these estimates is subject to future adjustment based on 
multiple variables such as the number of asserted claims the 
success of future mediations and further developments in the 
litigation it is therefore not possible at this time to provide any 
reasonable indication as to when remaining claims may be settled 
furthermore it is possible that the actual cost of ultimately settling 
or adjudicating the seroquel product liability claims may differ 
significantly from the total amount provided
as of 31 december 2010 legal defence costs of approximately 
738m have been incurred in connection with seroquelrelated 
product liability claims
astrazeneca has product liability insurance dating from 2003 that 
is considered to respond to the vast majority of the seroquelrelated 
product liability claims this insurance provides cover for legal 
defence costs and potential damages amounts the insurers that 
issued the applicable policies for 2003 have disputed coverage for 
seroquelrelated product liability claims on various grounds in april 
2010 astrazeneca settled its claims against several of its insurers for 
legal costs incurred defending the seroquelrelated product liability 
claims immediately in excess of astrazeneca’s selfinsured retention 
of 39m for an amount approximately equal to the receivable that 
had been recorded at 31 december 2009
disputes continue with insurers about the availability of coverage 
under additional insurance policies as of 31 december 2010 legal 
costs of approximately 123m have been incurred in connection with 
seroquelrelated product liability claims which astrazeneca believes 
to be covered by these additional insurance policies however 
the combined amount charged to the income statement to date in 
respect of legal costs and settlements which astrazeneca believes 
to be covered by these additional policies including the provisions 
taken in the third and fourth quarters of 2010 now significantly 
exceeds the total stated upper limits of these insurance policies
while no insurance receivable can be recognised under applicable 
accounting standards at this time astrazeneca believes that it is 
more likely than not that further insurance recoveries will be secured 
under the additional policies but there can be no assurance of this 
or the amount of any potential future recovery
patent litigation – brazil
in january 2006 astrazeneca filed a lawsuit before the federal 
courts of rio de janeiro seeking judicial declaration extending the 
term of one of its patents from 2006 to 2012 a preliminary order was 
granted shortly thereafter at the end of july 2010 pró genéricos and 
the brazilian patent trademark office brazilian pto appealed the 
preliminary order granted in favour of astrazeneca the judge decided 
in favour of pró genéricos and the brazilian pto astrazeneca 
appealed this decision in november 2010 the court of appeal 
decided in favour of pró genéricos and the brazilian pto and 
revoked the prelimary order previously granted to astrazeneca 
the main action continues
patent litigation – eu
since 2007 astrazeneca has filed requests with the portuguese 
courts seeking suspension of the effect of decisions taken by 
administrative bodies in portugal to grant other companies 
marketing authorisations for generic quetiapine fumarate many 
preliminary injunctions and main actions are pending before the 
courts the courts have generally agreed with astrazeneca’s position 
and suspended the marketing authorisations in the preliminary 
injunction actions until a definitive decision on the merits in the main 
actions or until astrazeneca’s patent rights expire in march 2012 if 
25 commitments and contingent liabilities continued astrazeneca annual report and form 20f information 2010 financial statements 191
corporate governance additional information financial statements overview business review
this occurs first only in one case did the administrative courts not 
suspend the grant of the marketing authorisation decision of 
december 2009 confirmed in july 2010 accordingly the 
portuguese administrative bodies have granted the retail price in 
respect of that product in july and november 2010 astrazeneca 
filed preliminary injunction proceedings with the aim of suspending 
the effect of the retail price decision astrazeneca has filed 
corresponding main actions
seroquel xr
patent litigation – us
astrazeneca lists two patents in the fda’s orange book referencing 
seroquel xr us patent no 4879288 the ’288 patent covering 
quetiapine fumarate the active ingredient and us patent no 
5948437 the ’437 patent covering extendedrelease formulations 
processes and methods in respect of quetiapine fumarate
as previously reported in 2008 and 2009 astrazeneca filed patent 
infringement actions in the us district court for the district of new 
jersey against various entities of handa pharmaceuticals llc 
handa accord healthcare inc accord and biovail laboratories 
international srl biovail for andas seeking approval to market 
generic copies of seroquel xr tablets
in march 2010 astrazeneca received a paragraph iv certification 
noticeletter from anchen pharmaceuticals inc anchen seeking 
approval to market generic versions of 150 200 300 and 400mg 
seroquel xr tablets before the expiration of the ’437 patent in its 
certification noticeletter anchen claims that certain of the claims of 
the ’437 patent will not be infringed by its proposed anda products 
and that the ’437 patent is invalid in april 2010 astrazeneca filed a 
lawsuit in the us district court for the district of new jersey against 
anchen and anchen inc alleging infringement of the ’437 patent
in july 2010 astrazeneca received a paragraph iv certification 
noticeletter from torrent pharmaceuticals ltd torrent indicating 
that it was seeking approval to market generic versions of 150 
200 300 and 400mg seroquel xr tablets before the expiration of 
the ’437 patent torrent claims that certain of the claims of the ’437 
patent will not be infringed by its proposed anda products and 
that the ’437 patent is invalid in august 2010 astrazeneca filed a 
lawsuit in the us district court for the district of new jersey 
against torrent alleging infringement of the ’437 patent in 
september 2010 astrazeneca received another certification 
noticeletter similar to that described above from torrent with 
respect to the 50mg seroquel xr tablets in september 2010 
astrazeneca filed another lawsuit in the us district court for the 
district of new jersey against torrent for patent infringement 
alleging infringement of the ’437 patent with respect to the  
50mg tablet
in july 2010 astrazeneca received a paragraph iv certification 
noticeletter from osmotica pharmaceutical corporation osmotica 
indicating that it was seeking approval to market generic versions 
of 200 300 and 400mg seroquel xr tablets before the expiration 
of the ’437 patent in its certification noticeletter osmotica claims 
that certain of the claims of the ’437 patent will not be infringed 
by its proposed anda products and that the ’437 patent is invalid 
in august 2010 astrazeneca filed a lawsuit in the us district court 
for the district of new jersey against osmotica
in october 2010 astrazeneca received a paragraph iv certification 
noticeletter from mylan pharmaceuticals inc mylan indicating 
that it was seeking approval to market a generic version of 200mg 
seroquel xr tablets before the expiration of the ’437 patent in its 
certification noticeletter mylan claims that certain of the claims of 
the ’437 patent will not be infringed by its proposed anda products 
and that the ’437 patent is invalid in october 2010 astrazeneca 
filed a patent infringement action in the us district court for the 
district of new jersey against mylan and mylan inc
the patent infringement actions against all seven anda filers 
proceed in discovery before us district court judge joel pisano
on 22 november 2010 the court conducted a claim construction 
hearing and on 30 november 2010 judge pisano issued a decision 
interpreting claims of the ’437 patent in december 2010 torrent 
filed a motion for clarification and reconsideration of the court’s 
decision in response
in december 2010 handa and accord reported that they have 
received tentative fda approval of their andas
on 8 january 2011 astrazeneca and handa submitted a joint 
stipulation and proposed order concerning the ’288 patent staying 
litigation between the parties until and including 26 march 2012 upon 
expiration of the stay astrazeneca’s infringement claims against 
handa relating to the ’288 patent and handa’s related counterclaims 
will be dismissed as moot under the stipulation handa agrees not 
to engage in the commercial sale of the extended release quetiapine 
fumarate products that are the subject of its anda before the 
26 march 2012 expiration of astrazeneca’s paediatric exclusivity 
relating to the ’288 patent the court entered the consent order 
described above on 10 january 2011 the court has set a pretrial 
schedule and trial to begin on 3 october 2011
patent litigation – eu
in the uk teva uk limited and teva pharmaceuticals limited teva 
issued revocation proceedings against astrazeneca in december 
2010 teva claims that the patent ep uk 0907364 is invalid
in hungary astrazeneca was notified in late 2010 that teva 
pharmaceuticals limited and teva gyógyszergyár zrt together teva 
had filed a request for nullity of the hungarian formulation patent 
for seroquel xr with the hungarian patent office teva claims that 
hungarian patent no 225 152 should be declared null and void 
astrazeneca is considering its response
synagis palivizumab
in december 2008 medimmune initiated patent litigation against 
pdl biopharma inc pdl in the us district court for the northern 
district of california medimmune sought a declaratory judgment that 
the queen patents owned by pdl are invalid andor not infringed 
by either synagis andor motavizumab and that no further royalties 
are owed under a patent licence medimmune and pdl signed in 1997 
1997 agreement medimmune has paid royalties on synagis since 
1998 under the 1997 agreement in february 2009 medimmune 
amended its complaint to add a separate claim asserting that 
medimmune is entitled under the 1997 agreement’s ‘most favoured 
licensee’ provision to the more favourable royalty terms that 
medimmune contends pdl has granted to other queen patent 
licensees pdl has taken the position in the case that both synagis 
and motavizumab infringe a single claim of the queen patents and 
on that basis that medimmune owes royalties for both products 
with respect to the ‘most favoured licensee’ dispute pdl contends 
that medimmune’s rights under that provision have not been triggered 
by pdl ’s licensing activities with third parties in december 2009 
pdl purported to cancel the 1997 agreement an action pdl 
later explained was based on an allegation that medimmune had 
underpaid royalties on exus sales of synagis by abbott international 
inc abbott and that medimmune failed to cooperate in a royalty 
audit after the purported termination pdl amended its answer to 
add counterclaims for breach of contract and patent infringement 
pdl ’s claims seek actual and exemplary damages and an injunction 
medimmune responded to the new claims by adding its own claims 
for damages and recoupment of past royalties in december 2010 
the court heard motions for summary judgment that could resolve 
certain issues including patent invalidity without a trial on 7 january 
2011 the court granted some of those motions the court held 
that the single patent claim asserted by pdl as a basis for 
medimmune’s royalty obligation is invalid and also that medimmune 
properly paid royalties on exus sales by abbott on 12 january 
2011 the court held a case management conference and scheduled 
25 commitments and contingent liabilities continued astrazeneca annual report and form 20f information 2010 192 financial statements
financial statements
the remaining claims for trial on 4 march 2011 with a further hearing 
scheduled on 4 february 2011 to finalise the trial date
as at 31 december 2010 medimmune had provided for 38m in 
respect of accrued royalties not paid to pdl for the period from 
december 2009 to the end of 2010
symbicort budesonideformoterol
symbicort maintenance and reliever therapy symbicort smart
in december 2008 oppositions were filed against patent  
ep 1 085 877 b1 covering the use of symbicort for the as needed 
symptomatic relief of asthma in addition to regular maintenance 
treatment of chronic asthma the opponents are vectura limited 
ratiopharm gmbh generics uk limited and norton healthcare 
limited a hearing date has not yet been set by the european patent 
office opposition division
us patent term extension
in june 2008 the us patent and trademark office issued a final 
determination that us patent no 5674860 was not eligible for 
patent term extension astrazeneca filed a request for reconsideration 
and the matter continues
toprolxl metoprolol succinate
in the first quarter of 2006 astrazeneca was served with 14 
complaints filed in the us district court for the districts of delaware 
massachusetts and florida against astrazeneca and aktiebolaget 
hässle the complaints were putative class actions filed on behalf 
of both direct purchasers and indirect purchasers that allege that 
astrazeneca attempted to illegally maintain monopoly power in the 
us over toprolxl in violation of the sherman act through the listing 
of invalid and unenforceable patents in the fda’s orange book and 
the enforcement of such patents through litigation against generic 
manufacturers seeking to market metoprolol succinate the 
complaints seek treble damages based on alleged overcharges 
to the putative classes of plaintiffs these 14 complaints were 
consolidated into two amended complaints in the us district court 
for the district of delaware one on behalf of direct purchasers  
and one on behalf of indirect purchasers the lawsuits are based 
upon a 2006 ruling by the us district court for the eastern  
district of missouri in the consolidated patent litigation against kv 
pharmaceuticals co andrx pharmaceuticals llc and eon labs 
inc that the astrazeneca patents relating to toprolxl are invalid 
and unenforceable in 2006 astrazeneca filed a motion seeking  
to dismiss or in the alternative stay the consolidated complaint in 
both antitrust cases in march 2010 the court ordered the parties 
to begin discovery and in april 2010 issued an order denying 
astrazeneca’s motions to dismiss 
in july 2010 a nonclass action antitrust complaint was filed in 
federal court in delaware against astrazeneca by walgreen co 
the kroger co safeway inc heb grocery company llp and 
supervalu inc in october 2010 a similar complaint was filed in 
delaware by cvs pharmacy inc caremark llc rite aid corp 
rite aid headquarters corp jcg pjc usa llc maxi drug inc 
doing business as brooks pharmacy and eckerd corp these 
two complaints are based on the same antitrust allegations that 
were already alleged in the direct purchaser actions and if upheld 
would reduce the damages available to the plaintiffs in the direct 
purchaser actions
zestril lisinopril
in 1996 two of astrazeneca’s predecessor companies zeneca 
limited and zeneca pharma inc as licensees merck  co inc 
and merck frosst canada inc together merck group commenced 
a patent infringement action in the federal court of canada against 
apotex inc apotex alleging infringement of merck group’s lisinopril 
patent astrazeneca and the merck group were ultimately successful 
in march 2010 astrazeneca and the merck group filed statements 
of issues to commence the reference to quantify the damages 
related to apotex’s infringement the damages matter proceeds
other product liability litigation
pain pump litigation
since february 2008 astrazeneca has been named among other 
defendants in approximately 300 lawsuits involving approximately 
489 plaintiffs filed in various us jurisdictions alleging injuries caused 
by third party pain pumps the complaints in these cases generally 
allege that the use of marcaine sensorcaine xylocaine andor 
naropin with or without epinephrine in pain pumps that were 
implanted into patients in connection with arthroscopic surgery 
caused chondrolysis as of the end of 2010 astrazeneca has been 
dismissed from all but two of these cases each with only one plaintiff
it was previously reported that astrazeneca was among 20 
defendants named in a putative class action lawsuit pending in 
federal district court in texas that was brought by a single plaintiff 
on behalf of ‘several hundred’ class members who received local 
anaesthetics intraarticularly for up to 72 hours or more via a pain 
pump in april 2010 the district court dismissed astrazeneca from 
this lawsuit and no appeal was taken
astrazeneca intends to vigorously defend against this matter
other commercial litigation
verus pharmaceuticals litigation
in may 2009 verus pharmaceuticals inc verus filed a lawsuit in 
the new york state supreme court new york county against 
astrazeneca and its subsidiary tika läkemedel ab tika alleging 
breaches of several related collaboration agreements to develop 
novel paediatric asthma treatments the complaint purported to 
state claims for fraud breach of contract unjust enrichment and 
conversion astrazeneca and tika removed the lawsuit to the us 
district court for the southern district of new york and moved to 
dismiss the complaint in august 2010 the federal district court 
granted the defendants’ motion to dismiss in its entirety in september 
2010 verus filed a notice of appeal from that decision with the us 
court of appeals for the second circuit
dr george pieczenik v astrazeneca pharmaceuticals lp 
astrazeneca lp et al
in may 2010 dr george pieczenik the plaintiff filed a lawsuit against 
astrazeneca and numerous other companies in the us district court 
for the district of new jersey alleging that defendants’ ‘research 
commercial and licensing activities’ infringe us patent no 5866363 
the ’363 patent purportedly owned by the plaintiff the plaintiff 
also alleged violations of the racketeering institution and corrupt 
organization act in june 2010 the court sua sponte dismissed 
without prejudice the plaintiff’s suit determining that the asserted 
claims failed to meet federal pleading requirements in july 2010 
the plaintiff filed an amended complaint again claiming infringement 
of the ’363 patent as well as other legal theories in october 2010 
defendants filed a motion to dismiss the lawsuit asserting that the 
plaintiff had failed to state a legally cognisable cause of action 
the plaintiff opposed the motion in november 2010 and filed 
several unsuccessful ancillary motions which the plaintiff has 
improperly appealed to the federal circuit court the court has 
not yet ruled on the motion to dismiss the amended complaint
other pricing litigation
average wholesale price litigation
astrazeneca is a defendant along with many other pharmaceutical 
manufacturers in several sets of cases involving allegations that 
by causing the publication of allegedly inflated wholesale list prices 
defendants caused entities to overpay for prescription drugs
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the first set of cases was filed in december 2001 in the us district 
court in boston massachusetts on behalf of a putative class of 
plaintiffs and related only to the physicianadministered zoladex 
medication following the massachusetts complaint nearly identical 
class action suits were filed in two other states which were 
consolidated with the massachusetts action for pretrial purposes 
pursuant to federal multidistrict litigation mdl procedures 
as previously reported astrazeneca and other manufacturers were 
later sued in similar lawsuits filed by the state attorneys general 
of alabama alaska arizona hawaii idaho illinois iowa kansas 
kentucky mississippi montana nevada pennsylvania utah 
and wisconsin as well as by multiple individual counties in the 
state of new york in september and november 2010 respectively 
astrazeneca was separately served with two new such cases brought 
by the attorneys general of oklahoma and louisiana the attorneys 
general lawsuits seek to recover alleged overpayments under 
medicaid and other statefunded healthcare programmes for 
substantially all of astrazeneca’s medications in several cases 
the states are also suing to recover alleged overpayments by state 
residents several of these suits were consolidated with the 
massachusetts action for pretrial purposes pursuant to federal mdl 
procedures private insurers and consumers filed putative state
wide class actions in arizona and new jersey alleging damages 
relating to private reimbursement of prescription drugs
in the mdl action in january 2006 the district court certified three 
classes of plaintiffs against astrazeneca a nationwide class of 
consumers who made copayments for zoladex reimbursed under 
the medicare part b programme class 1 a massachusettsonly 
class of third party payers including insurance companies union 
health and welfare benefit plans and selfinsured employers 
who covered consumer copayments for zoladex class 2 and 
a massachusettsonly class of third party payers and consumers 
who paid for zoladex outside of the medicare programme class 3 
in september 2008 the mdl court also provisionally certified 
multistate versions of class 2 and class 3 relating to zoladex 
for all of these classes the only astrazeneca drug at issue is zoladex
as previously reported in december 2008 the mdl court approved 
a settlement to resolve the class 1 claims for up to 24m to reimburse 
individual class members submitting claims plus attorneys’ fees 
of 858m with any unclaimed settlement amounts being donated 
to charitable organisations that fund cancer patient care and 
research a portion of this settlement was paid in june 2010 
but the administration of claims continues
in june 2007 and november 2007  the mdl court issued decisions 
after a bench trial on liability and damages on the massachusetts 
classes 2 and 3 the court found astrazeneca liable in connection 
with the pricing of zoladex during the period 1998 to 2003 and 
awarded double damages with prejudgment interest of 55m for 
class 2 and single damages with prejudgment interest of 74m 
for class 3 for a total of 129m on 18 june 2010 astrazeneca 
executed a settlement agreement to resolve inclusive of pre and 
postjudgment interest administration fees and plaintiffs’ attorney 
fees the massachusetts class 2 and class 3 claims for a total of 
13m the court granted preliminary approval of the settlement on 
12 august 2010 and a hearing regarding final approval is scheduled 
to take place on 2 february 2011
in june 2010 astrazeneca executed a settlement agreement to 
resolve inclusive of pre and postjudgment interest administration 
fees and plaintiffs’ attorney fees both the zoladex claims of the 
provisionally certified multistate class and the zoladex claims in 
the lawsuit but not certified for class action treatment for a total of 
90m the court granted preliminary approval of the settlement on 
12 august 2010 a hearing regarding final approval is scheduled to 
take place on 2 february 2011
with regard to the abovereferenced mdl class settlements 
astrazeneca had already taken provisions prior to 2010 in the 
aggregate amount of approximately 130m
many of the multiple attorney general and state putative class action 
lawsuits pending against astrazeneca and other manufacturers 
nationwide which involve numerous drugs in addition to zoladex 
remain pending and are in various stages of discovery those matters 
with significant developments are noted below
in october 2009 a kentucky jury found astrazeneca liable under 
the commonwealth of kentucky’s consumer protection statute and 
medicaid fraud statute and awarded 1472m in compensatory 
damages and 100 in punitive damages for drugs reimbursed by the 
commonwealth of kentucky medicaid agency and the trial court 
subsequently awarded statutory penalties of 54m astrazeneca 
filed a motion for a new trial and a motion for judgment notwithstanding 
the verdict both of which were denied on 19 january 2011 
astrazeneca believes the verdict and the court’s order are in error 
and intends to appeal
as previously reported the cases brought by the attorneys general 
of nevada montana hawaii and pennsylvania have been resolved 
through settlements in the fourth quarter of 2010 astrazeneca 
finalised agreements to settle the lawsuits brought by arizona iowa 
and the new york counties in september 2010 astrazeneca also 
finalised an agreement to settle the claims of the three named 
plaintiffs in the putative new jersey consumer class action case all 
of these settlements the aggregate amount of which is approximately 
19m have been paid in full and astrazeneca consequently owes 
no further obligations as a result of those underlying lawsuits
as previously reported in 2009 astrazeneca prevailed in the alabama 
attorney general lawsuit and the arizona consumer class action
astrazeneca remains in litigation with 10 state attorney generals
astrazeneca continues to vigorously defend the lawsuits brought 
by the attorneys general of alaska idaho illinois kansas kentucky 
louisiana mississippi oklahoma utah and wisconsin and denies 
the allegations therein
340b class action litigation
in august 2005 astrazeneca was named as a defendant along with 
multiple other pharmaceutical manufacturers in a putative class 
action suit filed by the county of santa clara on behalf of similarly 
situated california counties and cities that allegedly overpaid for drugs 
covered by federal section 340b of the drug pricing programme 
42 usc §256b the 340b programme entitles hospitals and clinics 
that treat a substantial portion of uninsured patients to preferential 
drug pricing for outpatient drugs
on 28 september 2010 the us supreme court granted the 
defendants’ petition for certiorari from a decision of the us court 
of appeals for the ninth circuit the issue before the supreme 
court is whether covered entities under the 340b programme  
have enforceable rights to sue as third party beneficiaries of the 
pharmaceutical pricing agreement that implements the statute 
following the grant of certiorari the trial court stayed all proceedings 
in the matter pending a decision by the us supreme court
the case was argued on 19 january 2011 a decision is expected 
by the end of june 2011
astrazeneca intends to vigorously defend these claims
25 commitments and contingent liabilities continued astrazeneca annual report and form 20f information 2010 194 financial statements
financial statements
other antitrust litigation and investigations
drug importation antitrust litigation
in august 2004 californian retail pharmacy plaintiffs filed an action in 
the superior court of california alleging a conspiracy by astrazeneca 
and approximately 15 other pharmaceutical manufacturer defendants 
to set the price of drugs sold in california at or above the canadian 
sales price for those same drugs and otherwise restrict the 
importation of pharmaceuticals into the us in july 2005 the court 
overruled in part and sustained in part without leave to amend the 
defendants’ motion to dismiss the plaintiffs’ third amended complaint 
in these proceedings the court overruled the defendants’ motion 
in respect of conspiracy claims but sustained the motion in respect 
of the california unfair competition law claims
in december 2006 the court granted the defendants’ motion for 
summary judgment determining that any alleged damages suffered 
by plaintiffs were ‘passedon’ to their customers and the case was 
subsequently dismissed the plaintiffs appealed that decision and the 
court of appeal of the state of california affirmed the lower court’s 
decision the plaintiffs appealed to the california supreme court 
in july 2010 the california supreme court reversed the decisions 
by the lower courts rejecting the ‘passon’ defence and remanded 
the case back to the lower court for further proceedings
as previously reported in september 2006 the defendants filed a 
motion for summary judgment arguing that the plaintiffs have failed 
to prove their allegations of a conspiracy and that the defendants 
are entitled to judgment as a matter of law the superior court will 
hear argument on that motion on 17 february 2011 the court has 
scheduled a trial of the matter to commence on 1 august 2011
astrazeneca denies the material allegations in the california action 
and is vigorously defending this matter
us secondary wholesalers
in july 2006 astrazeneca was named as a defendant along with 
a number of other pharmaceutical manufacturers and wholesalers 
in a complaint filed by rxusa wholesale inc rxusa in the us 
district court for the eastern district of new york the complaint 
alleges that the defendants violated federal and state antitrust laws 
in august 2010 the court of appeal for the second circuit affirmed 
the dismissal and the time period for rxusa to seek review by the 
supreme court expired rendering the matter concluded
european commission patent settlements monitoring
in january 2010 the european commission requested copies 
of settlement agreements entered into between july 2008 and 
december 2009 from a number of companies including astrazeneca 
astrazeneca cooperated fully with the request the european 
commission published its first report on monitoring of patent 
settlements in july 2010 the report noted a decrease in the number 
of settlement agreements which might be problematic pursuant to 
eu competition laws in the relevant period compared to the period 
covered by the european commission’s sector inquiry into the 
pharmaceutical industry january 2000june 2008 in january 
2011 the european commission requested copies of settlement 
agreements which were entered into or amended in 2010 from 
a number of companies including astrazeneca astrazeneca will 
cooperate fully with the request
other
for a description of other anti trustrelated litigation involving 
astrazeneca see the subsections entitled losecprilosec 
omeprazole nexium esomeprazole and toprolxl metoprolol 
succinate in this note 25 to the financial statements
other actual and threatened government investigations and 
related litigation
astrazeneca is involved in various governmental investigations 
considered typical to its business the more significant matters 
are discussed below
foreign corrupt practices act
in connection with an investigation into foreign corrupt practices act 
issues in the pharmaceutical industry astrazeneca has received 
inquiries from the us department of justice and the sec regarding 
among other things sales practices internal controls certain 
distributors and interactions with healthcare providers in several 
countries astrazeneca is cooperating with these inquiries 
astrazeneca is investigating indications of inappropriate conduct in 
certain countries including china these investigations are ongoing 
and it is not currently possible to predict the scope duration or 
outcome of these matters including the extent to which if at all 
they will result in any liability to astrazeneca
medco qui tam litigation schumann
astrazeneca has been named as a defendant in a lawsuit filed 
in federal court in philadelphia by a former medco health systems 
employee karl schumann under the qui tam whistleblower 
provisions of the federal and certain state false claims acts 
the action was initially filed in september 2003 but remained under 
seal until july 2009 at which time astrazeneca was served with a 
copy of the amended complaint following the government’s decision 
not to intervene in the case the lawsuit seeks to recover inter alia 
alleged overpayments by federal and state governments for prilosec 
and nexium from 1996 to 2007 these overpayments are alleged 
to be the result of improper payments intended to influence the 
formulary status of prilosec and nexium at medco and its customers 
in october 2010 the district court denied astrazeneca’s motion to 
dismiss the amended complaint in november 2010 astrazeneca 
filed a separate motion to dismiss for lack of jurisdiction under the 
false claims act briefing is complete and this motion remains 
pending before the district court
additional government investigations into drug marketing practices
as is true for most if not all major prescription pharmaceutical 
companies operating in the us astrazeneca is currently involved 
in multiple us federal and state investigations into drug marketing 
and pricing practices the us attorney’s offices for the districts  
of delaware texas and alabama are conducting investigations 
related to sales and marketing activities potentially involving more 
than one product including crestor and seroquel xr and likely 
in response to the filing of qui tam whistleblower lawsuits 
the precise parameters of these inquiries are unknown and 
astrazeneca is not in a position at this time to predict the scope 
duration or outcome of these matters including whether they will 
result in any liability to astrazeneca
in addition to the investigations described above and as previously 
reported various federal and state law enforcement offices 
have requested information relating to contracting and disease 
management programmes a leading provider of pharmacy services 
to longterm care facilities prior interactions with physicians in the 
state of delaware and nominal pricing under the medicaid rebate 
program respectively there have been no material developments in 
these matters
employment litigation
employment – wagehour litigation
in september 2006 marc brody filed a putative class action lawsuit 
against astrazeneca on behalf of himself and a class of approximately 
844 pharmaceutical sales specialists employed by the group 
in california during the period 19 september 2002 to the present 
the plaintiff alleged he and the proposed class members were 
unlawfully classified as exempt employees and denied overtime 
compensation and meal breaks in violation of the california labor 
25 commitments and contingent liabilities continued astrazeneca annual report and form 20f information 2010 financial statements 195
corporate governance additional information financial statements overview business review
code astrazeneca removed this action to the us district court for 
the central district of california in october 2006 the plaintiff filed 
a first amended complaint in march 2007  seeking civil penalties and 
adding claims for alleged failure to provide meal and rest periods 
failure to pay all wages earned each pay period failure to provide 
accurate wage statements failure to pay wages in a timely manner 
upon termination of employment and unfair competition astrazeneca 
denied the allegations made by the plaintiff asserting that the sales 
specialists are properly classified under various exemptions to the 
wage laws the plaintiff’s lawyers are also pursuing similar claims 
in lawsuits against most of the major pharmaceutical companies 
the us district court for the central district of california granted 
summary judgment in favour of astrazeneca in the brody lawsuit 
dismissing all claims by the plaintiff and finding the motion for class 
certification to be moot the plaintiff has filed a notice of appeal 
with the ninth circuit court of appeals in california briefing in that 
appeal is currently on hold
in separate lawsuits against astrazeneca the firms representing 
the brody plaintiff filed additional state and wageandhour class 
actions one case captioned baum v astrazeneca lp was filed 
under the pennsylvania minimum wage act and wage payment 
collection law in the us district court for the western district of 
pennsylvania on behalf of a putative class of approximately 473 sales 
specialists working in pennsylvania from march 2004 the court 
however granted summary judgment in favour of astrazeneca 
dismissing all claims filed by plaintiff baum and finding the motion 
for class certification to be moot the plaintiff filed an appeal  
with the third circuit court of appeals but that appeal was  
denied on 4 october 2010 the us supreme court denied the 
plaintiff’s certiorari petition which denied certiorari preserving 
the favourable decision for astrazeneca the baum lawsuit is  
now concluded
additionally in june 2007 the firms representing the brody plaintiff 
filed a nationwide collective action based on federal wageandhour 
law in the us district court for the district of delaware seeking unpaid 
overtime compensation and liquidated damages the lawsuit had 
a potential class size of 8300 current and former sales specialists 
employed by the group in the us from june 2004 the parties have 
negotiated a stipulation of dismissal of this lawsuit and the action 
was dismissed
in november 2010 a separate group of plaintiffs’ counsel filed a new 
nationwide collective action in the us district court for the southern 
district of indiana in this case shatto v astrazeneca plp the 
plaintiffs allege violations of federal wageandhour law for non
payment of overtime wages astrazeneca denies the allegations 
made by the plaintiff and intends to defend the litigation vigorously
bildman v astra usa
in march 2010 bildman filed a petition for a writ of certiorari with 
the us supreme court seeking appeal of the massachusetts 
supreme judicial court’s dismissal of his defamation claim against 
astrazeneca in may 2010 the us supreme court denied bildman’s 
petition for a writ of certiorari declining to review the lower court’s 
decision and preserving a favourable outcome for astrazeneca
tax
where tax exposures can be quantified an accrual is made based 
on best estimates and management’s judgement details of the 
movements in relation to material tax exposures are discussed below
transfer pricing and other international tax contingencies
astrazeneca faces a number of transfer pricing audits in jurisdictions 
around the world and in some cases is in dispute with the tax 
authorities the issues under discussion are often complex and 
can require many years to resolve accruals for tax contingencies 
require management to make estimates and judgements with respect 
to the ultimate outcome of a tax audit and actual results could vary 
from these estimates the international tax environment presents 
increasingly challenging dynamics for the resolution of transfer pricing 
disputes these disputes usually result in taxable profits being 
increased in one territory and correspondingly decreased in another 
our balance sheet positions for these matters reflect appropriate 
corresponding relief in the territories affected management considers 
that at present such corresponding relief will be available but given 
the challenges in the international tax environment will keep this 
aspect under careful review the total net accrual included in the 
group financial statements to cover the worldwide exposure to 
transfer pricing audits is 2310m a decrease of 17m due to 
negotiated settlements offset by the impact of an additional year of 
transactions relating to contingencies for which accruals had already 
been established revisions of estimates relating to existing audits 
a number of new tax contingencies and exchange rate effects
tax accruals have been made in respect of two individually 
significant exposures
  the tax accrual at 31 december 2008 and 2009 included amounts 
in relation to a long running transfer pricing dispute between 
astrazeneca and hm revenue  customs hmrc covering all 
periods from 1996 onwards in february 2010 astrazeneca 
announced that the company had entered into an agreement with 
hmrc in the uk to settle this dispute as a consequence of the 
settlement astrazeneca and hmrc have withdrawn the joint 
referral of this issue to the uk tax court the agreement will result 
in astrazeneca paying £505m to hmrc to resolve all claims made 
by hmrc in relation to this issue for the 15year period from 1996 
to the end of 2010 the £505m settlement is payable in two 
instalments of which the first instalment of £350m 562m was 
paid in february 2010 a second final instalment of £155m is due 
to be paid in march 2011 and is included in ordinary tax payable 
at 31 december 2010
  astrazeneca has applied for an advance pricing agreement in 
relation to intragroup transactions between the uk and the 
us which is being progressed through competent authority 
proceedings under the relevant double tax treaty
management continues to believe that astrazeneca’s positions 
on all its transfer pricing audits and disputes are robust and that 
astrazeneca is appropriately provided
for transfer pricing audits where astrazeneca and the tax authorities 
are in dispute astrazeneca estimates the potential for reasonably 
possible additional losses above and beyond the amount provided 
to be up to 565m 2009 575m however management believes 
that it is unlikely that these additional losses will arise it is possible 
that some of these contingencies may reduce in the future to the 
extent that any tax authority challenge is unsuccessful or matters 
lapse following expiry of the relevant statutes of limitation resulting 
in a reduction in the tax charge in future periods
other tax contingencies
included in the tax accrual is 1429m relating to a number of other 
tax contingencies an increase of 468m mainly due to the impact 
of an additional year of transactions relating to contingencies for 
which accruals had already been established and exchange rate 
effects for these tax exposures astrazeneca does not expect 
material additional losses it is however possible that some of 
these contingencies may reduce in the future if any tax authority 
challenge is unsuccessful or matters lapse following expiry of the 
relevant statutes of limitation resulting in a reduction in the tax 
charge in future periods
timing of cash flows and interest
it is not possible to estimate the timing of tax cash flows in  
relation to each outcome however it is anticipated that a number 
of significant disputes may be resolved over the next one to  
two years included in the provision is an amount of interest of 
608m 2009 565m interest is accrued as a tax expense
25 commitments and contingent liabilities continued astrazeneca annual report and form 20f information 2010 196 financial statements
financial statements
26 leases
total rentals charged to profit were as follows
2010
m
2009
m
2008
m
operating leases 212 198 206
the future minimum lease payments under operating leases that have initial or remaining terms in excess of one year at 31 december 2010 
were as follows
2010
m
2009
m
2008
m
obligations under leases comprise
no later than one year 161 132 101
rentals due after more than one year
later than five years 103 131 145
later than one year and not later than five years 242 208 212
345 339 357
506 471 458
27 statutory and other information
2010
m
2009
m
2008
m
fees payable to kpmg audit plc and its associates
group audit fee 23 24 32
fees payable to kpmg audit plc and its associates for other services
the audit of subsidiaries pursuant to legislation 65 66 71
other services pursuant to legislation 33 29 33
taxation 11 10 09
all other services 01 07 17
fees payable to kpmg audit plc in respect of the group’s pension schemes
the audit of subsidiaries’ pension schemes 06 05 06
139 141 168
other services pursuant to legislation include fees of 24m 2009 23m 2008 25m in respect of section 404 of the sarbanesoxley act
taxation services consist of tax compliance services and to a lesser extent tax advice
all other services include assurance services in relation to third party compliance with manufacturing and distribution agreements and 
advisory services supporting management in their development of competency and development frameworks for staff
related party transactions
the group had no material related party transactions which might reasonably be expected to influence decisions made by the users of 
these financial statements
key management personnel compensation
key management personnel are defined for the purpose of disclosure under ias 24 ‘related party disclosures’ as the members of the 
board and the members of the set
2010
000
2009
000
2008
000
shortterm employee benefits 21925 20784 21973
postemployment benefits 1793 2080 2290
termination benefits – 3639 –
sharebased payments 11563 12547 13210
35281 39050 37473
total remuneration is included within employee costs see note 24
subsequent events
there were no material subsequent events astrazeneca annual report and form 20f information 2010 financial statements 197
corporate governance additional information financial statements overview business review
at 31 december 2010 country
percentage of voting 
share capital held principal activity
uk
astrazeneca uk limited england 100 research and development manufacturing marketing
astrazeneca treasury limited england 100 treasury
continental europe
nv astrazeneca sa belgium 100 marketing
astrazeneca dunkerque production scs france 95 manufacturing
astrazeneca sas france 100 research manufacturing marketing
novexel sa france 100 research
astrazeneca gmbh germany 100 development manufacturing marketing
astrazeneca holding gmbh germany 100 manufacturing marketing
astrazeneca spa italy 100 marketing
astrazeneca farmaceutica spain sa spain 100 marketing
astrazeneca ab sweden 100 research and development manufacturing marketing
astrazeneca bv the netherlands 100 marketing
the americas
astrazeneca canada inc canada 100 research marketing
az reinsurance limited cayman islands 100 insurance and reinsurance underwriting
ipr pharmaceuticals inc puerto rico 100 development manufacturing marketing
astrazeneca lp us 99 research and development manufacturing marketing
astrazeneca pharmaceuticals lp us 100 research and development manufacturing marketing
zeneca holdings inc us 100 manufacturing marketing
medimmune llc us 100 research and development manufacturing marketing
asia africa  australasia
astrazeneca pty limited australia 100 development manufacturing marketing
astrazeneca pharmaceuticals co limited china 100 research and development manufacturing marketing
astrazeneca kk japan 80 manufacturing marketing
all shares are held indirectly
the companies and other entities listed above are those whose results or financial position principally affected the figures shown in the 
group financial statements a full list of subsidiaries joint ventures and associates will be annexed to the company’s next annual return 
filed with the registrar of companies the country of registration or incorporation is stated alongside each company the accounting year 
ends of subsidiaries and associates are 31 december except for aptium oncology inc which owing to local conditions and to avoid 
undue delay in the preparation of the financial statements is 30 november astrazeneca operates through 254 subsidiaries worldwide 
products are manufactured in 16 countries worldwide and are sold in over 100 countries the group financial statements consolidate 
the financial statements of the company and its subsidiaries at 31 december 2010
principal subsidiaries astrazeneca annual report and form 20f information 2010 198 financial statements
financial statements
we have audited the parent company financial statements of 
astrazeneca plc for the year ended 31 december 2010 set out on 
pages 199 to 203 the financial reporting framework that has been 
applied in their preparation is applicable law and uk accounting 
standards uk generally accepted accounting practice
this report is made solely to the company’s members as a body 
in accordance with chapter 3 of part 16 of the companies act 2006 
our audit work has been undertaken so that we might state to the 
company’s members those matters we are required to state to them 
in an auditor’s 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 and the company’s members 
as a body for our audit work for this report or for the opinions 
we have formed
respective responsibilities of directors and auditors
as explained more fully in the directors’ responsibilities statement 
set out on page 136 the directors are responsible for the 
preparation of the parent company financial statements and for 
being satisfied that they give a true and fair view our responsibility 
is to audit and express an opinion on the parent company 
financial statements in accordance with applicable law and 
international standards on auditing uk and ireland those 
standards require us to comply with the auditing practices board’s 
apb’s ethical standards for auditors
scope of the audit of the financial statements
a description of the scope of an audit of financial statements is 
provided on the apb’s website frcorgukapbscopeprivatecfm
opinion on financial statements
in our opinion the parent company financial statements
  give a true and fair view of the state of the company’s affairs 
as at 31 december 2010
  have been properly prepared in accordance with uk generally 
accepted accounting practice
  have been prepared in accordance with the requirements of the 
companies act 2006
opinion on other matters prescribed by 
the companies act 2006
in our opinion
  the part of the directors’ remuneration report to be audited 
has been properly prepared in accordance with the companies 
act 2006
  the information given in the directors’ report for the financial 
year for which the financial statements are prepared is consistent 
with the parent company financial statements
matters on which we are required to report by exception
we have nothing to report in respect of the following matters where 
the companies act 2006 requires us to report to you if in our opinion
  adequate accounting records have not been kept by the 
parent company or returns adequate for our audit have 
not been received from branches not visited by us
  the parent company financial statements and the part 
of the directors’ remuneration report to be audited are not 
in agreement with the accounting records and returns 
  certain disclosures of directors’ remuneration specified by 
law are not made
  we have not received all the information and explanations 
we require for our audit
other matters
we have reported separately on the group financial statements of 
astrazeneca plc for the year ended 31 december 2010 
jimmy daboo
senior statutory auditor
for and on behalf of kpmg audit plc statutory auditor
chartered accountants
15 canada square london e14 5gl
27 january 2011
independent auditor’s report to the members of astrazeneca plc astrazeneca annual report and form 20f information 2010 financial statements 199
corporate governance additional information financial statements overview business review
astrazeneca plc
at 31 december notes
2010
m
2009
m 
fixed assets
fixed asset investments 1 25232 25230
current assets
debtors – other 1 1 
debtors – amounts owed by group undertakings 3558 8966 
3559 8967 
creditors amounts falling due within one year
nontrade creditors 2 194 252 
interestbearing loans and borrowings 3 – 1790 
194 2042 
net current assets 3365 6925
total assets less current liabilities 28597 32155
creditors amounts falling due after more than one year
amounts owed to group undertakings 3 283 283
interestbearing loans and borrowings 3 8486 8582
8769 8865
net assets 19828 23290
capital and reserves
calledup share capital 6 352 363 
share premium account 4 2672 2180 
capital redemption reserve 4 107 94 
other reserves 4 3020 2922 
profit and loss account 4 13677 17731 
shareholders’ funds 5 19828 23290 
m means millions of us dollars
the company financial statements on pages 199 to 203 were approved by the board on 27 january 2011 and were signed on its behalf by
david r brennan simon lowth
director director
company’s registered number 2723534
company balance sheet
at 31 december astrazeneca annual report and form 20f information 2010 200 financial statements
financial statements
company accounting policies
basis of accounting
the company financial statements are prepared under the historical 
cost convention modified to include revaluation to fair value of certain 
financial instruments as described below in accordance with the 
companies act 2006 and uk generally accepted accounting 
practice uk gaap the group financial statements have been 
prepared in accordance with international financial reporting 
standards as adopted by the european union and as issued by 
the iasb and are presented on pages 142 to 146
the following paragraphs describe the main accounting policies 
under uk gaap which have been applied consistently
new accounting standards
the company has adopted the amendments to frs 20 ifrs 2 
‘sharebased payment – group cashsettled sharebased payment 
transactions’ during the year the adoption had no impact on the 
net results or net assets of the company
the amendments to frs 25 ias 32 ‘financial instruments 
presentation classification of rights issues’ has been issued but not 
yet adopted by the company ‘improvements to financial reporting 
standards 2010’ november 2010 has also been issued but not yet 
adopted by the company
foreign currencies
profit and loss account items in foreign currencies are translated 
into us dollars at average rates for the relevant accounting periods 
assets and liabilities are translated at exchange rates prevailing at 
the date of the company balance sheet exchange gains and losses 
on loans and on shortterm foreign currency borrowings and deposits 
are included within net interest payable exchange differences on all 
other transactions except relevant foreign currency loans are taken 
to operating profit
taxation
the charge for taxation is based on the result for the year and takes 
into account taxation deferred because of timing differences between 
the treatment of certain items for taxation and for accounting 
purposes full provision is made for the effects of these differences 
deferred tax assets are recognised where it is more likely than not 
that the amount will be realised in the future these estimates require 
judgements to be made including the forecast of future taxable 
income deferred tax balances are not discounted
accruals for tax contingencies require management to make 
judgements and estimates in relation to tax audit issues tax benefits 
are not recognised unless the tax positions will probably be sustained 
once considered to be probable management reviews each material 
tax benefit to assess whether a provision should be taken against 
full recognition of that benefit on the basis of potential settlement 
through negotiation andor litigation
any recorded exposure to interest on tax liabilities is provided for 
in the tax charge all provisions are included in creditors due within 
one year
investments
fixed asset investments including investments in subsidiaries are 
stated at cost and reviewed for impairment if there are indications 
that the carrying value may not be recoverable
sharebased payments
the issuance by the company to employees of its subsidiaries of 
a grant over the company’s options represents additional capital 
contributions by the company to its subsidiaries an additional 
investment in subsidiaries results in a corresponding increase in 
shareholders’ equity the additional capital contribution is based 
on the fair value of the grant issued allocated over the underlying 
grant’s vesting period
financial instruments
loans and other receivables are held at amortised cost longterm 
loans payable are held at amortised cost
litigation
through the normal course of business the astrazeneca group is 
involved in legal disputes the settlement of which may involve cost 
to the company provision is made where an adverse outcome is 
probable and associated costs can be estimated reliably in other 
cases appropriate descriptions are included astrazeneca annual report and form 20f information 2010 financial statements 201
corporate governance additional information financial statements overview business review
1 fixed asset investments
investments in subsidiaries
shares
m
loans
m
total
m
cost and net book value at 1 january 2010 16367 8863 25230
capital contribution 98 – 98
exchange – 100 100
amortisation –44
cost and net book value at 31 december 2010 16465 8767 25232
2 nontrade creditors
2010
m
2009
m
amounts due within one year
shortterm borrowings unsecured 12 12 
other creditors 169 226
amounts owed to group undertakings 13 14 
194 252 
3 loans
repayment
dates
2010
m
2009
m
amounts due within one year
interestbearing loans and borrowings unsecured
euros
4625 noncallable bond 2010 – 1073
5625 noncallable bond 2010 – 717
– 1790
amounts due after more than one year
amounts owed to subsidiaries unsecured
us dollars
72 loan 2023 283 283
interestbearing loans and borrowings unsecured
us dollars
54 callable bond 2012 1747 1744 
54 callable bond 2014 749 748 
59 callable bond 2017 1744 1743 
645 callable bond 2037 2718 2717 
euros
5125 noncallable bond 2015 993 1072 
pounds sterling
575 noncallable bond 2031 535 558 
8486 8582
2010
m
2009
m
loans or instalments thereof are repayable
after five years from balance sheet date 5280 6373 
from two to five years 1742 2492 
from one to two years 1747 –
within one year – 1790 
total unsecured 8769 10655 
all loans are at fixed interest rates accordingly the fair values of the loans will change as market rates change however since the loans are 
held at amortised cost changes in interest rates and the credit rating of the company do not have any effect on the company’s net assets
notes to the company financial statements astrazeneca annual report and form 20f information 2010 202 financial statements
financial statements
4 reserves
share
premium
account 
m
capital
redemption
reserve 
m
other
reserves 
m
profit 
and loss
account 
m
2010
total 
m
2009
total 
m
at beginning of year 2180 94 2922 17731 22927 22981
profit for the year – – – 2043 2043 2658 
dividends – – – 3494 3494 3026
amortisation of loss on cash flow hedge – – –11 1 
sharebased payment – – 98 – 98 179 
share repurchases – 13 – 2604 2591 – 
share premium 492––– 492 134 
at end of year 2672 107 3020 13677 19476 22927
distributable reserves at end of year – – 1841 13677 15518 19572 
as permitted by section 4084 of the companies act 2006 the company has not presented its own profit and loss account
at 31 december 2010 13677m 31 december 2009 17731m of the profit and loss account reserve was available for distribution 
included in other reserves is a special reserve of 157m arising on the redenomination of share capital in 1999 
included within other reserves at 31 december 2010 is 1179m 31 december 2009 1081m in respect of cumulative sharebased 
payment awards these amounts are not available for distribution
5 reconciliation of movement in shareholders’ funds
2010
m
2009
m
at beginning of year 23290 23343 
net profit for the financial year 2043 2658
dividends 3494 3026
amortisation of loss on cash flow hedge 1 1 
sharebased payment 98 179 
issue of astrazeneca plc ordinary shares 494 135 
repurchase of astrazeneca plc ordinary shares 2604 – 
net decrease in shareholders’ funds 3462 53 
shareholders’ funds at end of year 19828 23290 
details of dividends paid and payable to shareholders are given in note 21 to the group financial statements on page 167
6 share capital
allotted calledup and fully paid
2010
m
2009
m
issued ordinary shares 025 each 352 363 
redeemable preference shares £1 each – £50000 – –
352 363
at 31 december 2010 1409023452 ordinary shares were in issue
the redeemable preference shares carry limited class voting rights and no dividend rights this class of shares is capable of redemption 
at par at the option of the company on the giving of seven days’ written notice to the registered holder of the shares
the movements in share capital during the year can be summarised as follows
no of shares million m
at 1 january 2010 1451 363
issues of shares 12 2
repurchase of shares 54 13
at 31 december 2010 1409 352
share repurchases
during the year the company repurchased 53691507 ordinary shares at an average price of 3111 pence per share 2009 nil
share schemes
a total of 11756397 ordinary shares were issued during the year in respect of share schemes details of movements in the number of ordinary 
shares under option are shown in note 24 to the group financial statements details of options granted to directors are shown in the directors’ 
remuneration report
shares held by subsidiaries
no shares in the company are held by subsidiaries astrazeneca annual report and form 20f information 2010 financial statements 203
corporate governance additional information financial statements overview business review
7 litigation and environmental liabilities
in addition to those matters disclosed below there are other cases where the company is named as a party to legal proceedings 
these are described in note 25 to the group financial statements 
eu commission patent settlements monitoring
in january 2010 the european commission requested copies of settlement agreements entered into between july 2008 and december 2009 
from a number of companies including astrazeneca astrazeneca cooperated fully with the request the european commission published 
its first report on monitoring of patent settlements in july 2010 the report noted a decrease in the number of settlement agreements which 
might be problematic pursuant to eu competition laws in the relevant period compared to the period covered by the european commission’s 
sector inquiry into the pharmaceutical industry january 2000june 2008 in january 2011 the european commission requested copies of 
settlement agreements which were entered into or amended in 2010 from a number of companies including astrazeneca astrazeneca will 
cooperate fully with the request
foreign corrupt practices act
in connection with an investigation into foreign corrupt practices act issues in the pharmaceutical industry astrazeneca has received inquiries 
from the us department of justice and the sec regarding among other things sales practices internal controls certain distributors and 
interactions with healthcare providers in several countries astrazeneca is cooperating with these inquiries astrazeneca is investigating 
indications of inappropriate conduct in certain countries including china these investigations are ongoing and it is not currently possible 
to predict the scope duration or outcome of these matters including the extent to which if at all they will result in any liability to astrazeneca
bildman v astra usa
in march 2010 bildman filed a petition for a writ of certiorari with the us supreme court seeking appeal of the massachusetts supreme 
judicial court’s dismissal of his defamation claim against astrazeneca in may 2010 the us supreme court denied bildman’s petition for 
a writ of certiorari declining to review the lower court’s decision and preserving a favourable outcome for astrazeneca
eu commission investigation
on 30 november 2010 the european commission commenced an investigation relating to certain alleged practices regarding nexium and 
dawn raided several astrazeneca sites the european commission is investigating whether astrazeneca may have acted individually or jointly 
to delay generic entry in alleged breach of articles 101 andor 102 of the treaty on the functioning of the european union which prohibit 
anticompetitive practices between third parties and abuse of a dominant position dawn raids are a preliminary step in investigating suspected 
anticompetitive practices the european commission is continuing its investigation astrazeneca remains of the view that the investigation 
is unfounded and that it has complied with all relevant competition laws astrazeneca has in accordance with its corporate policy cooperated 
with the european commission’s investigation astrazeneca will continue to cooperate with the european commission should it decide to 
take the matter further
dutch competition authority nexium  investigation
on 30 november 2010 the dutch competition authority nma commenced an investigation relating to alleged breach of article 24 of dutch 
competition law and article 102 of the treaty on the functioning of the european union the nma’s investigation relates to alleged foreclosure of 
generic versions of certain proton pump inhibitors the nma is continuing its investigation astrazeneca remains of the view that the investigation 
is unfounded and that it has complied with all relevant competition laws astrazeneca has in accordance with its corporate policy cooperated 
with the nma’s investigation astrazeneca will continue to cooperate with the nma should it decide to take the matter further
other
the company has guaranteed the external borrowing of a subsidiary in the amount of 288m
8 statutory and other information
the directors were paid by another group company in 2010 and 2009 astrazeneca annual report and form 20f information 2010 204 financial statements
financial statements
for the year ended 31 december
2006
m
2007
m
2008
m
2009
m
2010
m
revenue and profits
revenue 26475 29559 31601 32804 33269
cost of sales 5559 6419 6598 5775 6389
distribution costs 226 248 291 298 335
research and development 3902 5162 5179 4409 5318
selling general and administrative costs 9096 10364 10913 11332 10445
other operating income and expense 524 728 524 553 712
operating profit 8216 8094 9144 11543 11494
finance income 888 959 854 462 516
finance expense 561 1070 1317 1198 1033
profit before tax 8543 7983 8681 10807 10977
taxation 2480 2356 2551 3263 2896
profit for the period 6063 5627 6130 7544 8081
other comprehensive income for the period net of tax 931 342 1906 54 25
total comprehensive income for the period 6994 5969 4224 7490 8106
profit attributable to
equity holders of the company 6043 5595 6101 7521 8053
noncontrolling interests 20 32 29 23 28
earnings per share
earnings per 025 ordinary share basic 386 374 420 519 560
earnings per 025 ordinary share diluted 385 373 420 519 557
dividends 1410 1750 1900 2090 2410
return on revenues
operating profit as a percentage of revenues 310 274 289 352 345
ratio of earnings to fixed charges 927 156 135 199 240
at 31 december
2006
m
2007
m
2008
m
2009
m
2010
m
statement of financial position
property plant and equipment goodwill and intangible assets 11657 29649 29240 29422 28986
other investments 146 299 605 446 535
deferred tax assets 1220 1044 1236 1292 1475
current assets 16909 16996 15869 23760 25131
total assets 29932 47988 46950 54920 56127
current liabilities 9447 15218 13415 17640 16787
noncurrent liabilities 5069 17855 17475 16459 15930
net assets 15416 14915 16060 20821 23410
share capital 383 364 362 363 352
reserves attributable to equity holders 14921 14414 15550 20297 22861
noncontrolling interests 112 137 148 161 197
total equity and reserves 15416 14915 16060 20821 23410
for the year ended 31 december
2006
m
2007
m
2008
m
2009
m
2010
m
cash flows
net cash inflowoutflow from
operating activities 7693 7510 8742 11739 10680
investing activities 272 14887 3896 2476 2340
financing activities 5366 6051 6362 3629 7220
2055 1326 1516 5634 1120
for the purpose of computing the ratio of earnings to fixed charges earnings consist of the income from continuing ordinary activities before 
taxation of group companies and income received from companies owned 50 or less plus fixed charges fixed charges consist of interest on all 
indebtedness amortisation of debt discount and expense and that portion of rental expense representative of the interest factor
group financial record where can i  
ﬁnd out more
this section 
contains more 
information about 
our business and 
about being an 
astrazeneca 
shareholder
astrazeneca annual report and form 20f information 2010 additional information 205 line extensions
estimated filing
compound mechanism area under investigation phase us eu japan emerging
cardiovascular
kombiglyze™ xr onglyza™ 
metformin ir fdc

  
dpp4 inhibitor  metformin fdc diabetes iii launched filed filed
dapagliﬂozinmetformin fdc

sglt2 inhibitor  metformin fdc diabetes iii h1 2012 h1 2012
onglyza™ savor

dpp4 inhibitor outcomes study iii 2016
brilinta pegasustimi adp receptor antagonist outcomes study iii 2014 2014 2014 2014
crestor statin outcomes in subjects  
with elevated crp
iii launched launched tbc filed
axanum proton pump inhibitor  low dose 
aspirin fdc
low dose aspirin associated 
peptic ulcer
iii filed filed 2014 filed
gastrointestinal
nexium proton pump inhibitor peptic ulcer bleeding iii filed launched
nexium proton pump inhibitor gerd iii launched launched filed launched
neuroscience
seroquel xr d
2
5ht
2
 antagonist major depressive disorderiiilaunchedlaunched launched
diprivan

sedative and anaesthetic conscious sedation iii launched h2 2012 launched
emla

local anaesthetic topical anaesthesia iii launched filed launched
oncology 
iressa egfr tyrosine kinase inhibitor 1st line egfr mut nsclc iii launched filed launched
faslodex oestrogen receptor antagonist high dose 500mg 2nd line 
advanced breast cancer
iii launched launched filed filed
infection
flumistfluenz live attenuated intranasal  
inﬂuenza virus vaccine
inﬂuenza iii launched filed
respiratory  inﬂammation
oxis longacting ß
2
 agonist copd iii launched q3 2011
symbicort inhaled steroid 
longacting ß
2
 agonist
copd iii launched launched q4 2011 launched
symbicort inhaled steroid 
longacting ß
2
 agonist
smart iii launched q3 2011 launched
 partnered product
  kombiglyze™ xr in the us onglyza™metformin ir fdc in the eu
 adjunct only monotherapy withdrawn
 complete response letter received
astrazeneca annual report and form 20f information 2010 206 development pipeline
development pipeline at 27 january 2011 phase iiiregistration
estimated filing
compound mechanism area under investigation phase us eu japan emerging
cardiovascular
brilintabrilique adp receptor antagonist arterial thrombosis iii filed launched 2013 approved
dapagliﬂozin

sglt2 inhibitor diabetes iii filed filed 2013 q2 2011
neuroscience
vimovo

naproxen  esomeprazole signs and symptoms  
of oa ra and as
iii launched launched filed
tc5214

neuronal nicotinic  
receptor modulator
major depressive  
disorder adjunct
iii h2 2012 2015
oncology  
vandetanib zactima vegfregfr tyrosine kinase  
inhibitor with ret kinase activity
medullary thyroid  
cancer
iii filed filed q3 2011 q3 2011
zibotentan endothelin a receptor antagonist castrate resistant  
prostate cancer
iii h1 2012 h1 2012 h1 2012
infection
medi3250 live attenuated intranasal inﬂuenza 
virus vaccine quadrivalent
seasonal inﬂuenza iii h1 2011 tbc
zinforo

 ceftaroline extended spectrum cephalosporin 
with afﬁnity to penicillinbinding 
proteins 
pneumoniaskin  
infections
iii filed q3 2011
respiratory  inﬂammation
fostamatinib

spleen tyrosine kinase syk inhibitor rheumatoid arthritis iii 2013 2013 2013
 partnered product
 complete response letter received
astrazeneca annual report and form 20f information 2010
overview business review corporate governance financial statements additional information
development pipeline 207 phases i and ii
estimated filing
compound mechanism area under investigation phase us eu japan emerging
cardiovascular
azd1656 gk activator diabetes ii
azd6714 gk activator diabetes i
azd8329 11bhsd inhibitor diabetesobesity i
azd7687 diacylglycerol acyl transferase  
–1 inhibitor
diabetesobesity i
azd5658 gk activator diabetesobesity i
azd4017 11bhsd inhibitor glaucoma i
neuroscience
azd3480

alpha
4
beta
2
 neuronal nicotinic 
receptor agonist
adhd ii
azd6765 nmda receptor antagonist major depressive disorder ii 2016 2016
azd2066 metabotropic glutamate receptor  
5 antagonist
chronic neuropathic pain ii
azd2066 metabotropic glutamate receptor  
5 antagonist
major depressive disorder ii
nktr118

oral peripherallyacting opioid 
antagonist
opioidinduced constipation ii 2013 2013
tc5214

neuronal nicotinic receptor  
modulator
major depressive disorder 
monotherapy
ii
tc5619

alpha
7
 neuronal nicotinic receptor 
agonist
cognitive disorders in 
schizophrenia
ii
azd1446

alpha
4
beta
2
 neuronal nicotinic 
receptor agonist  
alzheimer’s diseaseadhd ii
azd2423 chemokine antagonist chronic neuropathic pain ii
azd3241 myeloperoxidase mpo inhibitor parkinson’s disease i
azd3043

gabaa receptor modulator short acting sedativeanaesthetic i
medi578 antingf mab oa pain i
azd5213 h3an alzheimer’s diseaseadhd i
oncology 
recentin vegfr tyrosine kinase inhibitor nsclc ii 2016 2016
selumetinib

 azd6244 
arry142886
mek inhibitor solid tumours ii 2015 2015
olaparib parp inhibitor serous ovarian cancer ii 2015 2015 2016 2016
azd1152 aurora kinase inhibitor haematological malignancies ii
azd8931 erbb kinase inhibitor breast cancer chemo combi
solid tumours 
ii 2015 2015
medi575

anti pdgfralpha mab solid tumours ii
azd2461 parp inhibitor solid tumours i
azd3514 androgen receptor downregulator prostate cancer i
azd7762 chk1 kinase inhibitor solid tumours i
azd8330

 arry424704 mek inhibitor solid tumours i
cat8015 anticd22 recombinant immunotoxin haematological malignancies i
medi551 anticd19 mab haematological malignancies i
azd8055 tor kinase inhibitor range of tumours i
medi573

 antiigf mab solid tumours i
azd1480 jak2 inhibitor myeloproliferative diseases 
solid tumours
i
azd4547 fgfr tyrosine kinase inhibitor solid tumours i
azd2014 tor kinase inhibitor solid tumours i
selumetinib azd6244 
arry142886mk2206

mekakt inhibitor solid tumours i
medi3617 antiang2 mab solid tumours i
azd5363 akt inhibitor solid tumours i
medi565 anticea bite solid tumours i
  partnered product
astrazeneca annual report and form 20f information 2010 208 development pipeline
development pipeline phases i and ii continued
estimated filing
compound mechanism area under investigation phase us eu japan emerging
infection
azd9773

antitnfalpha polyclonal antibody severe sepsis ii 2015 2015 2015 2015
caz104

beta lactamase inhibitor 
cephalosporin
serious infections ii 2013 2014
motavizumab

humanized mab binding to  
rsv f protein
early and late treatment of 
rsv in paeds 1 yr
ii
cxl104

 cef104 beta lactamase inhibitor 
cephalosporin
mrsa ii 2015
medi534 rsvpiv3 vaccine rsvpiv prophylaxis i
medi550 pandemic inﬂuenza virus vaccine pandemic inﬂuenza prophylaxis i
medi559 rsv vaccine rsv prophylaxis i
azd5847 oxazolidinone antibacterial inhibitor tuberculosis i
azd9742 btgt4 iv mrsa i
respiratory  inﬂammation
azd1981 crth2 receptor antagonist asthmacopd ii
medi528

antiil 9 mab asthma ii
cat354 antiil 13 mab asthma ii
azd3199 ilaba asthmacopd ii
medi563

antiil 5r mab asthma ii
medi545

antiifnalpha mab sle myositis ii
azd8848 tolllike receptor 7 agonist asthma ii
cam3001

antigmcsfr mab rheumatoid arthritis ii
azd2423 ccr2b antagonist copd ii
azd8683 muscarinic antagonist copd ii
azd5423 inhaled segra copd ii
azd5069 cxcr2 copd ii
azd9819 neutrophil elastase inhibitor copd i
medi546

antiifnalphar mab scleroderma i
medi551 anticd19 mab scleroderma i
medi570

antiicos mab sle i
medi557 rsv mab – extended halflife copd i
  partnered product
astrazeneca annual report and form 20f information 2010
overview business review corporate governance financial statements additional information
development pipeline 209 discontinued projects
compound area under investigation
cardiovascular
azd6370 diabetes
certriad dyslipidaemia
azd4017 diabetesobesity
azd0837 thrombosis
azd6482 thrombosis
gastrointestinal
lesogaberan azd3355 gerd
azd1386 gerd
azd2066 gerd
azd2516 gerd
infection
medi560 piv prophylaxis
motavizumab rsv prevention
azd7295 hepatitis c
neuroscience
azd6280 anxiety
azd8418 schizophrenia
azd8529 schizophrenia
azd7268 depressionanxiety
azd2327 depressionanxiety
azd2516 chronic neuropathic pain
seroquel xr generalised anxiety disorder us
comments
as disclosure of compound information is balanced by the business need to maintain conﬁdentiality information in relation to some  
compounds listed in this section has not been disclosed at this time
compound area under investigation
oncology
medi547 solid tumours
azd4769 solid tumours
faslodex 1st line advanced breast cancer
olaparib gbrca breast
recentin crc
recentin recurrent glioblastoma
respiratory  inﬂammation
azd9668 copd
azd6553 copd
azd2551 copd
azd5122 copd
azd5985 asthmacopd
azd8075 asthmacopd
azd8566 copd
azd1236 copd
azd9164 copd
astrazeneca annual report and form 20f information 2010 210 development pipeline
development pipeline at 31 december 2010 the company had 120304 registered holders of 1409023452 ordinary shares at 31 december 2010 there were 
approximately 205000 holders of adrs representing 65 of the issued share capital of the company and 149000 holders of shares held 
under the vpc services agreement representing 182 of the issued share capital of the company the adrs each of which is equivalent to 
one ordinary share are issued by jpmorgan chase bank jpmorgan
during 2010 under astrazeneca’s share repurchase programme which was introduced in 1999 537 million shares were repurchased and 
subsequently cancelled at a total cost of 2604 million representing 38 of the total issued share capital of the company the average 
price paid per share in 2010 was 3111 pence this brings the total number of shares repurchased to date since the beginning of the 
repurchase programme in 1999 to 4300 million ordinary shares at an average price of 2717 pence per ordinary share for a consideration 
including expenses of 20702 million the excess of the consideration over the nominal value was charged against the proﬁt and loss 
account reserve ordinary shares issued in respect of share schemes totalled 118 million
in 1999 in connection with the merger between astra and zeneca through which the company was formed the company’s share capital 
was redenominated in us dollars on 6 april 1999 zeneca shares were cancelled and us dollar shares issued credited as fully paid on the 
basis of one dollar share for each zeneca share then held this was achieved by a reduction of capital under section 135 of the companies 
act 1985 upon the reduction of capital becoming effective all issued and unissued zeneca shares were cancelled and the sum arising as a 
result of the share cancellation credited to a special reserve which was converted into us dollars at the rate of exchange prevailing on the 
record date this us dollar reserve was then applied in paying up at par newly created us dollar shares
at the same time as the us dollar shares were issued the company issued 50000 redeemable preference shares for cash at par the 
redeemable preference shares carry limited class voting rights no dividend rights and are capable of redemption at par at the option of the 
company on the giving of seven days’ written notice to the registered holder of the redeemable preference shares
a total of 826 million ordinary shares were issued to astra shareholders who accepted the merger offer before the ﬁnal closing date 21 may 
1999 the company received acceptances from astra shareholders representing 996 of astra’s shares and the remaining 04 was 
acquired in 2000 for cash
since april 1999 following the merger of astra and zeneca the principal markets for trading in the shares of the company are the london 
stock exchange lse the stockholm stock exchange sse and the nyse the table overleaf sets out for the four quarters of 2009 and for 
the ﬁrst two quarters and last six months of 2010 the reported high and low share prices of the company on the following bases
 for shares listed on the lse the reported high and low middle market closing quotations are derived from the daily ofﬁcial list
 for shares listed on the sse the high and low closing sales prices are as stated in the ofﬁcial list
 for adss listed on the nyse the reported high and low sales prices are as reported by dow jones adr quotations
astrazeneca plc share listings and prices
2006 2007 2008 2009 2010
ordinary shares in issue – millions 
at year end 1532 1457 1447 1451 1409
weighted average for year 1564 1495 1453 1448 1438
stock market price – per ordinary share 
highest pence 3529 2984 2888 2947 3385
lowest pence 2574 2093 1748 2147 2732
at year end pence 2744 2164 2807 29105 2922
percentage analysis of issued share capital at 31 december
by size of account  
no of shares
2006

2007

2008

2009

2010
 
1 – 250 05 05 05 05 05
251 – 500 07 07 07 07 06
501 – 1000 09 09 09 08 08
1001 – 5000 13 13 12 11 11
5001 – 10000 02 02 02 02 02
10001 – 50000 10 10 10 11 10
50001 – 1000000 123 129 136 130 128
over 1000000
1
 831 825 819 826 830
1
 includes vpc and adr holdings
shareholder information
astrazeneca annual report and form 20f information 2010
overview business review corporate governance financial statements additional information
shareholder information 211 major shareholdings
at 27 january 2011 the following had disclosed an interest in the issued ordinary share capital of the company in accordance with the 
requirements of rule 512 of the uk listing authority’s disclosure and transparency rules
shareholder 
number of
shares 
date of disclosure to 
company
1
 
percentage of 
issued share 
capital 
blackrock inc 100885181 8 december 2009 718 
invesco limited 72776277 6 october 2009 518 
axa sa 56991117 3 february 2009 406 
investor ab 51587810 3 february 2009 367 
legal  general investment management limited 57675232 5 august 2010 410 
1
  since the date of disclosure to the company the interest of any person listed above in ordinary shares may have increased or decreased no requirement to notify the company of any increase 
or decrease would have arisen unless the holding moved up or down through a whole number percentage level the percentage level may increase on the cancellation of shares following a 
repurchase of shares under the company’s share repurchase programme or decrease on the issue of new shares under any of the company’s share plans
no other person held a notiﬁable interest in shares comprising 3 or more of the issued ordinary share capital of the company
changes in the percentage ownership held by major shareholders during the past three years are set out below major shareholders do not 
have different voting rights
percentage of issued share capital
shareholder 27 jan 2011 28 jan 2010 29 jan 2009 31 jan 2008
blackrock inc 718 694 – – 
invesco limited 518 501 – – 
axa sa 406 392 490 487 
investor ab 367 355 438 436 
legal  general investment management limited 410 464 409 406 
capital research and management company – – 492 489 
wellington management co llp – – 418 416 
barclays plc – – 426 424 
adss evidenced by adrs issued by jpmorgan as depositary are listed on the nyse at 27 january 2011 the proportion of ordinary shares 
represented by adss was 655 of the ordinary shares outstanding
number of registered holders of ordinary shares at 27 january 2011
  in the us 771
  total 120325
number of record holders of adrs at 27 january 2011
  in the us 2211
  total 2237
ordinary lse ads ordinary sse
1
high pence low pence high us low us high sek low sek 
2009 – quarter 1 29470 21470 4160 3024 3310 2615 
– quarter 2 27280 22760 4501 3340 3510 2795 
– quarter 3 28780 26440 4754 4301 3560 3050
– quarter 4 29300 26905 4700 4364 3395 3080
2010 – quarter 1 31025 27320 5040 4305 3638 3101
– quarter 2 31690 27720 4874 4091 3680 3140
– july 32890 30515 5151 4705 3719 3534
– august 33480 32165 5341 4943 3822 3651
– september 33850 32335 5269 5049 3761 3450
– october 33590 31295 5350 5043 3547 3367
– november 31440 29955 5034 4693 3369 3257
– december 31530 29220 4928 4580 3365 3093
1
 principally held in bearer form
astrazeneca annual report and form 20f information 2010
shareholder information
212 shareholder information so far as the company is aware it is neither directly nor indirectly owned or controlled by one or more corporations or by any government
at 27 january 2011 the total amount of the company’s voting securities owned by directors and ofﬁcers of the company was
title of class amount owned percentage of class 
ordinary shares 390106 003 
the company does not know of any arrangements the operation of which might result in a change in the control of the company
related party transactions
during the period 1 january 2011 to 27 january 2011 there were no transactions loans or proposed transactions between the company 
and any related parties which were material to either the company or the related party or which were unusual in their nature or conditions 
see also note 27 to the financial statements on page 196
options to purchase securities from registrant or subsidiaries
a at 27 january 2011 options outstanding to subscribe for ordinary shares were
number of shares subscription price pence normal expiry date
50058484 1882 – 3487 2011 – 2019 
the weighted average subscription price of options outstanding at 27 january 2011 was 2446 pence all options were granted under 
company employee share schemes
b included in paragraph a are options granted to directors and ofﬁcers of the company as follows
number of shares subscription price pence normal expiry date
1928024 1882 – 3487 2011 – 2019
c included in paragraph b are options granted to individually named directors details of these option holdings at 31 december 2010 are 
shown in the share option plans table on page 134
during the period 1 january 2011 to 27 january 2011 no director exercised any options
dividend payments
for ordinary shares listed on the lse and the sse and adrs listed on the nyse the record date for the second interim dividend for 2010 
payable on 14 march 2011 is 4 february 2011 and the exdividend date is 2 february 2011
the record date for the ﬁrst interim dividend for 2011 payable on 12 september 2011 is 5 august 2011
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
shareview
the company’s shareholders with internet access may visit the website shareviewcouk and register their details to create a portfolio 
shareview is a free and secure online service from the company’s registrars equiniti limited which gives access to shareholdings including 
balance movements indicative share prices and information about recent dividends
sharegift
the company welcomes and values all of its shareholders no matter how many or how few shares they own however shareholders who 
have only a small number of shares whose value makes it uneconomic to sell them either now or at some stage in the future may wish to 
consider donating them to charity through sharegift an independent charity share donation scheme one feature of the scheme is that there 
is no gain or loss for uk capital gains tax purposes on gifts of shares through sharegift and it may now also be possible to obtain uk 
income tax relief on the donation further information about sharegift can be found on its website sharegiftorg or by contacting sharegift 
on 020 7930 3737 or at 17 carlton house terrace london sw1y 5ah sharegift is administered by the orr mackintosh foundation 
registered charity number 1052686 more information about the uk tax position on gifts of shares to sharegift can be obtained from hm 
revenue  customs on their website hmrcgovuk 
the unclaimed assets register
the company supplies unclaimed dividend data to the unclaimed assets register uar which provides investors who have lost track of 
shareholdings with an opportunity to search the uar’s database of unclaimed ﬁnancial assets on payment of a small ﬁxed fee the uar 
donates part of the search fee to charity the uar can be contacted on 0870 241 1713 or at po box 9501 nottingham ng80 1wd
results
unaudited trading results of astrazeneca in respect of the ﬁrst three months of 2011 will be published on 28 april 2011 and results in respect 
of the ﬁrst six months of 2011 will be published on 28 july 2011
astrazeneca annual report and form 20f information 2010
overview business review corporate governance financial statements additional information
shareholder information 213 documents on display
the articles and other documents concerning the company which are referred to in this annual report may be inspected at the company’s 
registered ofﬁce at 2 kingdom street london w2 6bd 
taxation for us residents
the following summary of the material uk and us federal income tax consequences of ownership of ordinary shares or adrs held as 
capital assets by us resident shareholders is based on current uk and us federal income tax law including the usuk double taxation 
convention relating to income and capital gains which entered into force on 31 march 2003 the convention this summary does not 
describe all of the tax consequences that may be relevant in light of the us resident shareholder’s particular circumstances us resident 
shareholders are urged to consult their tax advisers regarding us federal income tax consequences of the ownership and disposition of 
ordinary shares and adrs in their particular circumstances this summary is also based in part on representations of jpmorgan as 
depositary for adrs and assumes that each obligation in the deposit agreement among the company jpmorgan and the holders from time 
to time of adrs and any related agreements will be performed in accordance with its terms the us treasury has expressed concerns that 
parties to whom adrs are released before shares are delivered to the depositary prerelease or intermediaries in the chain of ownership 
between holders and the issuer of the security underlying the adrs may be taking actions that are inconsistent with the claiming by us 
holders of adrs of foreign tax credits for us federal income tax purposes such actions would also be inconsistent with the claiming of the 
reduced tax rate described below applicable to dividends received by certain noncorporate us resident shareholders accordingly the 
availability of the reduced tax rate for dividends received by certain noncorporate us resident shareholders could be affected by actions that 
may be taken by parties to whom adrs are prereleased
this summary assumes that we are not and will not become a passive foreign investment company as discussed below
uk and us income taxation of dividends
the uk does not currently impose a withholding tax on dividends paid by a uk company such as the company
for us federal income tax purposes distributions paid by the company to a us resident shareholder are included in gross income as foreign 
source ordinary dividend income to the extent paid out of the company’s current or accumulated earnings and proﬁts calculated in 
accordance with us federal income tax principles because the company does not maintain calculations of its earning and proﬁts under us 
federal income tax principles it is expected that distributions generally will be reported to us resident shareholders as dividends the amount 
of the dividend will be the us dollar amount received by the depositary for us resident holders of adrs or in the case of ordinary shares 
the us dollar value of the pounds sterling payments made determined at the spot pound sterlingus dollar rate on the date the dividend is 
received by the us resident shareholders regardless of whether the dividend is converted into us dollars and it will not be eligible for the 
dividends received deduction generally available to us corporations if the dividend is converted into us dollars on the date of receipt us 
resident holders of ordinary shares or adrs generally should not be required to recognise foreign currency gains or losses in respect of the 
dividend income they may have foreign currency gain or loss if the amount of such dividend is not converted into us dollars on the date of 
its receipt
subject to applicable limitations and the discussion above regarding concerns expressed by the us treasury dividends received by certain 
noncorporate us resident holders of ordinary shares or adrs in taxable years beginning before 1 january 2013 may be subject to us 
federal income tax at a maximum rate of 15 us resident shareholders should consult their own tax advisers to determine whether they are 
subject to any special rules which may limit their ability to be taxed at this favourable rate
taxation on capital gains
under the convention each contracting state may in general tax capital gains in accordance with the provisions of its domestic law under 
present uk law individuals who are neither resident nor ordinarily resident in the uk and companies which are not resident in the uk will not 
be liable for uk tax on capital gains made on the disposal of their ordinary shares or adrs unless such ordinary shares or adrs are held in 
connection with a trade profession or vocation carried on in the uk through a branch or agency
a us resident shareholder will generally recognise us source capital gains or losses for us federal income tax purposes on the sale or 
exchange of ordinary shares or adrs in an amount equal to the difference between the us dollar amount realised and such holder’s us 
dollar adjusted tax basis in the ordinary shares or adrs us resident shareholders should consult their own tax advisers about the treatment 
of capital gains which may be taxed at lower rates than ordinary income for noncorporate us resident shareholders and capital losses the 
deductibility of which may be limited
passive foreign investment company pfic rules
we believe that we were not a pfic for us federal income tax purposes for the year ended 31 december 2010 and do not expect to be a 
pfic in the foreseeable future however since pfic status depends on the composition of our income and assets and the market value of 
our assets including among others less than 25 owned equity investments from time to time there can be no assurance that we will not 
be considered a pfic for any taxable year if we were treated as a pfic for any taxable year during which ordinary shares or adrs were 
held certain adverse tax consequences could apply to us resident shareholders
astrazeneca annual report and form 20f information 2010 214 shareholder information
shareholder information uk inheritance tax
under the current double taxation estates convention the estate tax convention between the us and the uk ordinary shares or adrs 
held by an individual shareholder who is domiciled for the purposes of the estate tax convention in the us and is not for the purposes of the 
estate tax convention a national of the uk will generally not be subject to uk inheritance tax on the individual’s death or on a chargeable gift 
of the ordinary shares or adrs during the individual’s lifetime provided that any applicable us federal gift or estate tax liability is paid unless 
the ordinary shares or adrs are part of the business property of a permanent establishment of the individual in the uk or in the case of a 
shareholder who performs independent personal services pertain to a ﬁxed base situated in the uk where the ordinary shares or adrs 
have been placed in trust by a settlor who at the time of settlement was a us resident shareholder the ordinary shares or adrs will 
generally not be subject to uk inheritance tax unless the settlor at the time of settlement was not domiciled in the us and was a uk national 
in the exceptional case where the ordinary shares or adrs are subject to both uk inheritance tax and us federal gift or estate tax the 
estate tax convention generally provides for double taxation to be relieved by means of credit relief
uk stamp duty reserve tax and stamp duty
a 15 stamp duty reserve tax is payable upon the deposit of ordinary shares in connection with the creation of but not subsequent dealing 
in adrs a 05 stamp duty is payable on all purchases of ordinary shares
exchange controls and other limitations affecting security holders
there are no governmental laws decrees or regulations in the uk restricting the import or export of capital or affecting the remittance of 
dividends interest or other payments to nonresident holders of ordinary shares or adrs
there are no limitations under english law or the articles on the right of nonresident or foreign owners to be the registered holders of or to 
exercise voting rights in relation to ordinary shares or adrs or to be registered holders of notes or debentures of zeneca wilmington inc or 
the company
exchange rates
for the periods up to april 1999 astra accounted for and reported its results in swedish krona whereas zeneca accounted for and reported 
its results in pounds sterling consistent with astrazeneca’s decision to publish its financial statements in us dollars the ﬁnancial information 
in this document has been translated from swedish krona and pounds sterling into us dollars at the following applicable exchange rates
sekus usgbp
average rates proﬁt and loss account cash ﬂow 
1995 71100 15796 
1996 67000 15525 
1997 76225 16386 
1998 79384 16603 
1999 82189 16247 
end of year spot rates balance sheet
1995 66500 15500 
1996 68400 16900 
1997 78500 16600 
1998 80400 16600 
1999 85130 16185 
the following information relating to average and spot exchange rates used by astrazeneca is provided for convenience
sekus usgbp
average rates income statement cash ﬂow 
2008 65130 18728 
2009 76552 15496 
2010 69256 15852
end of year spot rates balance sheet 
2008 77740 14437 
2009 71636 16072 
2010 67511 15422 
astrazeneca annual report and form 20f information 2010
overview business review corporate governance financial statements additional information
shareholder information 215 history and development of the company
astrazeneca plc was incorporated in england and wales on 17 
june 1992 under the companies act 1985 it is a public limited 
company domiciled in the uk the company’s registered number is 
2723534 and its registered ofﬁce is at 2 kingdom street london 
w2 6bd telephone 44 020 7604 8000 from february 1993 
until april 1999 the company was called zeneca group plc on 6 
april 1999 the company changed its name to astrazeneca plc
the company was formed when the pharmaceutical agrochemical 
and specialty chemical businesses of imperial chemical industries 
plc were demerged in 1993 in 1999 the company sold the 
specialty chemical business also in 1999 the company merged 
with astra of sweden in 2000 it demerged the agrochemical 
business and merged it with the similar agribusiness of novartis ag 
to form a new company called syngenta ag
in 2007  the group acquired medimmune a biologics and vaccines 
business based in the us
the group owns and operates numerous rd production and 
marketing facilities worldwide its corporate headquarters are at 2 
kingdom street london w2 6bd
articles
objects
the company’s objects were originally set out in its memorandum 
of association by operation of law on 1 october 2009 these 
objects were deemed to be provisions of the articles however by a 
special resolution of the shareholders at the company’s agm held 
on 29 april 2010 those deemed objects were deleted from the 
articles the company’s objects are now unrestricted
any amendment to the articles requires the approval of shareholders 
by a special resolution at a general meeting of the company
directors
the board has the authority to manage the business of the 
company for example through powers to allot and repurchase its 
shares subject where required to shareholder resolutions subject 
to certain exceptions directors do not have power to vote at board 
meetings on matters in which they have a material interest
the quorum for meetings of the board is a majority of the full board 
of whom at least four must be nonexecutive directors in the 
absence of a quorum the directors do not have power to determine 
compensation arrangements for themselves or any member of  
the board
the board may exercise all the powers of the company to borrow 
money variation of these borrowing powers would require the 
passing of a special resolution of the company’s shareholders
all directors must retire from ofﬁce at the company’s agm each 
year and may present themselves for election or reelection 
directors are not prohibited upon reaching a particular age from 
submitting themselves for election or reelection
within two months of the date of their appointment directors are 
required to beneﬁcially own ordinary shares of an aggregate 
nominal amount of 125 which currently represents at least 500 
shares
rights preferences and restrictions attaching to shares
as at 31 december 2010 the company had 1409023452 
ordinary shares and 50000 redeemable preference shares in 
issue the ordinary shares represent 9999 and the redeemable 
preference shares represent 001 of the company’s total share 
capital these percentages have been calculated by reference to the 
closing midpoint usgbp exchange rate on 31 december as 
published in the london edition of the financial times newspaper 
as agreed by the shareholders at the company’s agm held on 29 
april 2010 the articles were amended with immediate effect to 
remove the requirement for the company to have an authorised 
share capital the concept of which was abolished under the 
companies act 2006 each ordinary share carries the right to vote 
at general meetings of the company the rights and restrictions 
attaching to the redeemable preference shares differ from those 
attaching to ordinary shares as follows 
  the redeemable preference shares carry no rights to receive 
dividends
  the holders of redeemable preference shares have no rights to 
receive notices of attend or vote at general meetings except in 
certain limited circumstances they have one vote for every 
50000 redeemable preference shares held
  on a distribution of assets of the company on a windingup or 
other return of capital subject to certain exceptions the holders 
of redeemable preference shares have priority over the holders 
of ordinary shares to receive the capital paid up on those shares
  subject to the provisions of the companies act 2006 the 
company has the right to redeem the redeemable preference 
shares at any time on giving not less than seven days’ written 
notice
there are no speciﬁc restrictions on the transfer of shares in the 
company which is governed by the articles and prevailing 
legislation
the company is not aware of any agreements between holders of 
shares that may result in restrictions on the transfer of shares or that 
may result in restrictions on voting rights
action necessary to change the rights of shareholders
in order to vary the rights attached to any class of shares the 
consent in writing of the holders of three quarters in nominal value 
of the issued shares of that class or the sanction of an extraordinary 
resolution passed at a general meeting of such holders is required
general meetings
agms and other general meetings as from time to time may be 
required where a special resolution is to be passed or a director is 
to be appointed require 21 clear days’ notice to shareholders 
subject to the companies act 2006 other general meetings require 
14 clear days’ notice
for all general meetings a quorum of two shareholders present in 
person or by proxy and entitled to vote on the business transacted 
is required unless each of the two persons present are corporate 
representatives of the same corporation or each of the two persons 
present are proxy of the same shareholder
shareholders and their duly appointed proxies and corporate 
representatives are entitled to be admitted to general meetings
limitations on the rights to own shares
there are no limitations on the rights to own shares
property
substantially all of our properties are held freehold free of material 
encumbrances and we believe that such properties are ﬁt for their 
purpose
corporate information
astrazeneca annual report and form 20f information 2010 216 corporate information market deﬁnitions
united states of america other established markets emerging markets 
us western europe japan emerging europe china other emerging row
austria albania  egypt
belgium canada belarus emerging asia paciﬁc gulf states
denmark bosniaherzegovina bangladesh israel
finland other established row bulgaria cambodia latin america
france australia croatia hong kong lebanon
germany new zealand czech republic india maghreb
greece estonia indonesia saudi arabia
holland georgia laos south africa
iceland hungary malaysia
ireland kazakhstan philippines
italy latvia singapore
luxembourg lithuania south korea
norway macedonia sri lanka
portugal poland taiwan
spain romania thailand
sweden russia vietnam
switzerland serbiamontenegro 
uk slovakia 
slovenia 
turkey 
ukraine 
rest of world means other established markets and emerging markets 
established markets means the us and other established markets 
established row means canada japan and other established row 
latin america includes argentina brazil chile colombia costa rica el salvador guatemala honduras mexico nicaragua panama peru and venezuela 
gulf states includes bahrain dubai kuwait oman qatar and uae 
maghreb means algeria morocco and tunisia 
ims health data is not available or astrazeneca does not subscribe for ims health data for these countries 
the above table is not an exhaustive list of all the countries in which astrazeneca operates
us equivalents
terms used in this annual report and form 20f information us equivalent or brief description 
accruals accrued expenses 
allotted issued 
calledup share capital issued share capital 
creditors liabilitiespayables 
debtors receivables and prepaid expenses 
earnings net income 
employee share schemes employee stock beneﬁt plans 
fixed asset investments noncurrent investments 
freehold ownership with absolute rights in perpetuity 
interest payable interest expense 
interest receivable interest income 
loans longterm debt 
prepayments prepaid expenses 
proﬁt income 
proﬁt and loss account income statementconsolidated statement of income 
reserves retained earnings 
share premium account premiums paid in excess of par value of ordinary shares 
shortterm investments redeemable securities and shortterm deposits 
glossary
astrazeneca annual report and form 20f information 2010
overview business review corporate governance financial statements additional information
glossary 217 abbott – abbott pharmaceuticals pr ltd with respect to trilipix™ 
andor certriad and abbott laboratories inc with respect to 
crestor
affordable care act – the patient protection and affordable care 
act which was signed into law on 23 march 2010 as amended by 
the health care and education reconciliation act which was 
signed into law on 30 march 2010 
adr – an american depositary receipt evidencing title to an ads
ads – an american depositary share representing one underlying 
ordinary share
agm – an annual general meeting of the company
anda – an abbreviated new drug application which is a marketing 
approval application for a generic drug submitted to the fda
annual report – this annual report and form 20f 
information 2010
articles – the articles of association of the company
astellas – astellas pharma inc
astra – astra ab being the company with whom the company 
merged in 1999
astrazeneca – the company and its subsidiaries
bureau veritas – bureau veritas uk limited
bms – bristolmyers squibb company
board – the board of directors of the company
bricmt – brazil russia india china mexico and turkey
ceo – the chief executive ofﬁcer of the company
cer – constant exchange rates
cfo – the chief financial ofﬁcer of the company
chmp – the committee for medicinal products for human use 
being a committee of the ema
cis – commonwealth of independent states
code of conduct – the group’s code of conduct
combined code – the uk combined code on corporate 
governance published by the financial reporting council in  
june 2008 that sets out standards of good practice in corporate 
governance for the uk
company or parent company – astrazeneca plc formerly 
zeneca group plc zeneca
complete response letter – a letter issued by the fda 
communicating its decision to a drug company that its nda  
or biological licensing application is not approvable as submitted 
the submitting drug company is required to respond to the 
complete response letter if it wishes to pursue an approval for  
its submission
corporate integrity agreement – the agreement described 
in the us corporate integrity agreement reporting section on  
page 43
cost growth rates – percentage growth of a particular cost 
category over the comparable cost category for the previous year
daiichi sankyo – daiichi sankyo company limited
dainippon sumitomo – dainippon sumitomo pharmaceuticals 
co ltd
director – a director of the company
earnings per share eps – proﬁt for the year after tax and 
minority interests divided by the weighted average number of 
ordinary shares in issue during the year
ema – the european medicines agency
eu – the european union
fda – the us food and drug administration which is part of the 
us department of health and human services agency which is 
the regulatory authority for all pharmaceuticals including biologics 
and vaccines and medical devices in the us
forest – forest laboratories holdings limited
gaap – generally accepted accounting principles
gdp – gross domestic product
gia – astrazeneca’s group internal audit
gross margin – the margin as a percentage by which sales 
exceed the cost of sales calculated by dividing the difference 
between the two by the sales ﬁgure
group – astrazeneca plc and its subsidiaries
ias – the international accounting standards
iasb – the international accounting standards board
ifrs – the international financial reporting standards or an 
international financial reporting standard as the context requires
kpi – key performance indicator
krona or sek – references to the currency of sweden
maa – a marketing authorisation application which is an 
application for authorisation to place medical products on the 
market this is a speciﬁc term used in the eu and european 
economic area markets
mab – monoclonal antibody a biologic that is speciﬁc that is it 
binds to and attacks one particular antigen 
medimmune – medimmune llc formerly medimmune inc
merck – merck sharp  dohme corp formerly merck  co inc
moving annual total mat – a ﬁgure that represents the ﬁnancial 
value of a variable for 12 months
nda – a new drug application to the fda for approval to market a 
new medicine in the us
nektar – nektar therapeutics
ngos – nongovernmental organisations
novexel – novexel sa
nsaid – a nonsteroidal antiinﬂammatory drug
nyse – the new york stock exchange
operating proﬁt – sales less cost of sales less operating costs 
plus operating income
ordinary share – an ordinary share of 025 each in the share 
capital of the company
the following abbreviations and expressions have the following meanings when used in this annual report
astrazeneca annual report and form 20f information 2010
glossary
218 glossary orphan drug – a drug which has been approved for use in a 
relatively lowincidence indication an orphan indication and has 
been rewarded with a period of market exclusivity the period of 
exclusivity and the available orphan indications vary between 
markets
otc – overthecounter
paediatric exclusivity – in the us a sixmonth period of 
exclusivity to market a drug which is awarded by the fda in return 
for certain paediatric clinical studies using that drug this sixmonth 
period runs from the date of relevant patent expiry analogous 
provisions are available in certain other territories eg european 
spc paediatric extensions
patent term extension – an extension of up to ﬁve years in the 
term of a us patent relating to a drug which compensates for 
delays in marketing resulting from the need to obtain fda approval
phase i – the phase of clinical research where a new drug or 
treatment is tested in small groups of people 20 to 80 to check 
that the drug can achieve appropriate concentrations in the body 
determine a safe dosage range and identify side effects this 
phase includes healthy volunteer studies
phase ii – the phase of clinical research which includes the 
controlled clinical activities conducted to evaluate the effectiveness 
of the drug in patients with the disease under study and to 
determine the common shortterm side effects and risks 
associated with the drug phase ii studies are typically conducted 
in a relatively small number of patients usually no more than 
several hundred
phase iii – the phase of clinical research which is performed to 
gather additional information about effectiveness and safety of the 
drug often in a comparative setting to evaluate the overall beneﬁt
risk proﬁle of the drug phase iii studies usually include between 
several hundred and several thousand patients
pounds sterling £ gbp pence or p – references to the 
currency of the uk
rd – research and development
redeemable preference share – a redeemable preference 
share of £1 each in the share capital of the company
regulatory data protection – see the intellectual property 
section from page 30
regulatory exclusivity – any of the intellectual property rights 
arising from generation of clinical data and includes regulatory 
data protection as explained in the intellectual property section 
from page 30 paediatric exclusivity and orphan drug status
rigel – rigel pharmaceuticals inc
sarbanesoxley act – the us sarbanesoxley act of 2002
sec – the us securities and exchange commission the 
governmental agency that regulates the us securities industry
stock market
seroquel – seroquel ir and seroquel xr unless otherwise stated
set – the senior executive team
sga costs – selling general and administrative costs
snda – a supplemental new drug application which is an 
application made to the fda to seek approval to market an 
additional indication for a drug already on the market
targacept – targacept inc
teva – teva pharmaceuticals usa inc
torrent – torrent pharmaceuticals ltd
tsr – total shareholder return being the total return on a share 
over a period of time including dividends reinvested
uk – the united kingdom of great britain and northern ireland
uk corporate governance code – the new uk corporate 
governance code published by the financial reporting council in 
may 2010 that sets out standards of good practice in corporate 
governance for the uk
us – the united states of america
us dollar us usd or  – references to the currency of the us
who – the world health organization the united nations’ 
specialised agency for health
astrazeneca annual report and form 20f information 2010
overview business review corporate governance financial statements additional information
glossary 219 2010 performance summary 18
accounting policies 90 142 200
acquisitions 167
annual general meeting 118 216
aptium oncology inc 75
articles of association 214 216
astra tech ab 75
astrazeneca plc ﬁnancial statements 198
astrazeneca plc balance sheet 199
audit committee 111 112 113
biologics 11 12 42 66 99 101
board 106
branches 117
business background and results overview 81
capital and reserves 166
capitalisation 86
cardiovascular 2 27 50 52 147 206
cash and cash equivalents 144 157
chairman’s statement 6
chief executive ofﬁcer’s review 8
combined code 109
commitments and contingent liabilities 178
company history 211 216
competition 12 99
compliance and group internal audit 116
consolidated statement of cash ﬂows 141
consolidated statement of changes in equity 140
consolidated statement of comprehensive income 138
consolidated statement of ﬁnancial position 139
corporate responsibility see responsible business
directors’ interest in shares 132
directors’ responsibility statement 136
dividends 6 86 117 167 213 214
earnings per ordinary share 4 151
emerging markets 10 32 33 38 71 73 98 217
employee costs and share options for employees 173
environmental sustainability 45
established markets 10 32 38 71 73 217
ethics including stem cell research  
and animal research
30 33 41 42 43
executive directors’ and senior executive team’s 
remuneration and terms of employment
123
finance income and expense 148
financial highlights inside front cover
financial instruments 146 158
financial position 2009 89
financial position 2010 85
financial risk management 90 168
form 20f 115
gastrointestinal 2 27 50 56 147 206
glossary 217
goodwill 85 89 92 143 154
group ﬁnancial record 204
group ﬁnancial statements 135
growth drivers 10
independent auditor’s report 137 198
infection 2 27 50 58 147 206
inﬂammation see respiratory  inﬂammation
intangible assets 85 89 92 143 155 178
intellectual property 14 30 97 98
interestbearing loans and borrowings 145 158 170 201
inventories 89 144 157
key performance indicators 16 41 43
leases 144 196
litigation 92 98 101 102 145 178 200 203
managing risk 95
market deﬁnitions 217
medicines 5 20 50
neuroscience 2 27 50 61 147 206
nomination and governance committee 111 112 115
oncology 2 27 50 64 147 206
operating proﬁt 4 16 82 148
operational overview 4
other investments 144 157 159
our marketplace 10
outsourcing 14 15 40 44 101
patents see intellectual property
patient safety 44
people 15 16 18 36 46 173
pipeline 15 16 18 27 51 96 206
political donations 118
portfolio investment board pib 116
postretirement beneﬁts 93 103 162
pricing 11 16 33
principal risks and uncertainties 96
product revenue information 147
property plant and equipment 85 89 144 153
provisions for liabilities and charges 85 89 161
regulatory requirements 12
related party transactions 213
relations with shareholders 112
remuneration committee 111 112 115 119 120
research and development 9 12 26 92 143 148
respiratory  inﬂammation 2 27 50 67 206
responsible business 9 15 18 40
rest of world 4 72 217
restructuring 4 38 79 148
results of operations 2009 87
results of operations 2010 82
safety health and wellbeing 46
sales and marketing 16 32
sales by therapy area 50
science committee 111 112 115
segment information 151
senior executive team set 108 116
share capital 117 167 202 211
share repurchase 4 6 7 86 87 117 167 202
statutory and other information  196
strategy 10
subsidiaries 117 197
supply and manufacturing 34
taxation  85 89 90 93 103 143 149 195
taxation information for shareholders 214
trade and other payables 85 89 144 161
trade and other receivables 85 89 144 157
trade marks 98 inside back cover
transactions with directors 131
uk corporate governance 109
uk corporate governance code 109
us 10 72 217
us corporate governance 115
working with others 3 
case studies
surviving coronary heart disease 13
taking medicines 19
managing asthma 23
tackling counterfeit drugs 35
searching for new antibiotics 39
improving healthcare in uganda 49
improving healthcare in china 77
personalising cancer treatments 104
index
astrazeneca annual report and form 20f information 2010 220 index trade marks
trade marks of the astrazeneca group of companies appear throughout this annual report 
in italics astrazeneca the astrazeneca logotype and the astrazeneca symbol are all trade 
marks of the astrazeneca group of companies trade marks of companies other than 
astrazeneca appear with a ™ sign and include abraxane™ a trade mark of abraxis
bioscience llc advair diskus™ a trade mark of glaxo group limited celebrex™ a 
trade mark of g d searle llc cubicin™ a trade mark of cubist pharmaceuticals inc 
cytofab™ a trade mark of protherics inc ethyol™ a trade mark of scherico ltd in certain 
countries and astrazeneca in others iscover™ a trade mark of sanoﬁaventis 
kombiglyze™ a trade mark of bristolmyers squibb company lipitor™ a trade mark of 
pﬁzer ireland pharmaceuticals onglyza™ a trade mark of bristolmyers squibb company 
plavix™ a trade mark of sanoﬁaventis teﬂaro™ a trade mark of forest laboratories inc 
and trilipix™ a trade mark of fournier industrie et santé
designed and produced by 
board and portrait photography by marcus lyon
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fsc the mill uses pulps that are totally chlorine free tcf  
and some pulp is bleached using an elemental chlorine free  
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contact information


Summary:
 the world pharmaceutical market grew by 
52 in 2010 and more people than ever 
around the world had access to modern 
medicines including more patients in emerging 
markets indeed as the world pharmaceutical 
markets ﬁgure below shows average revenue 
growth in emerging markets was at nearly 
14 more than three times the rate in 
established markets  
while demand for medicines and world pharmaceutical markets 
especially emerging markets continued to grow in 2010 research
based pharmaceutical companies faced a challenging marketplace 
pricing pressures intensiﬁed in most established markets with 
increased competition from generic medicines and greater 
constraints being placed on our business by payers in addition 
industrywide rd productivity continued to decline
in 2010 the top ﬁve pharmaceutical markets in the world remained 
the us japan germany france and china with the us representing 
409 of global prescription pharmaceutical sales 2009 412 
growth drivers
expanding patient populations
the world population has doubled in the last 50 years from three 
billion to over six billion and is expected to reach nine billion by 
2050 in addition the number of people who can access modern 
standards of healthcare continues to increase particularly among 
the elderly who represent a rising proportion of populations in 
developed nations
furthermore fasterdeveloping economies such as china india 
and brazil offer new opportunities for the industry to help an 
expanding number of patients who can beneﬁt from medicines 
emerging markets now represent approximately 85 of the world 
population in addition their pharmaceutical revenues grew 
signiﬁcantly faster than those in established markets in 2010 and  
as the estimated pharmaceutical market growth 20092014 ﬁgure 
opposite shows it is estimated that this trend will continue
data based on world market sales using astrazeneca’s market deﬁnitions as set out in the 
market deﬁnitions table on page 217 source ims health
world sales bn
2010 754
2009 717
2008 677
western europe sales bn
2010 183
2009 179
2008 173
established row sales bn
2010 120
2009 117
2008 111
emerging markets sales bn
2010 143
2009 125
2008 108
growth in 2010
52
growth in 2010
41
growth in 2010
27
growth in 2010
28
growth in 2010
138
market value in 2010
100
market value in 2010
409
market value in 2010
243
market value in 2010
159
market value in 2010
189
us sales bn
2010 308
2009 296
2008 285
world pharmaceutical markets
astrazeneca annual report and form 20f information 2010
our strategy and performance
10 our strategy and performance our marketplace
our marketplace unmet medical need
in most established markets ageing populations and certain 
lifestyle choices such as smoking a poor diet and lack of exercise 
drive an increased incidence of chronic diseases such as cancer 
cardiovascularmetabolic and respiratory diseases which require 
longterm management the prevalence of chronic disease is 
increasing in middleincome countries and is now beginning to  
have an impact in the least developed countries for example  
who research shows that about 90 of the premature deaths  
from noncommunicable diseases are in developing countries 
amounting to more than eight million deaths annually who 
estimates that if nothing is done deaths from these diseases  
will increase by a further 17 before 2015 with africa seeing the 
greatest increase of 27 compared with 6 in europe
advances in science and technology
innovation leading to new drugs is critical to meeting unmet  
medical need existing drugs will continue to be important in 
meeting the growing demand for healthcare particularly as the 
increasing use of generic medication improves access and frees  
up total healthcare funds at the same time advances in disease 
understanding and the application of new technologies will be 
required to ensure the delivery of new medicines such approaches 
include personalised healthcare and predictive science as well as 
other new therapeutic modalities 
the use of large molecules or biologics is becoming an 
increasingly important source of innovation forecasts for 2016 
predict that of the world’s top 100 pharmaceutical products 48  
of sales will come from biologics this compares with only 31 in 
2009 and 15 in 2000 with advances in the technologies for the 
design and testing of novel compounds new opportunities also 
exist for the use of innovative small molecules as new medicines 
most pharmaceutical companies now pursue both small molecules 
and biologics rd
the challenges
pricing pressure
most of our sales continue to be generated in highly regulated 
markets where governments exert various levels of control on 
pricing and reimbursement cost containment in healthcare 
including containment of pharmaceutical spending continues to  
be a focus the global economic downturn has enhanced this  
focus and the pricing and reimbursement environments in many 
markets continue to be highly dynamic
in march 2010 president barack obama signed into law the 
affordable care act it is intended to expand healthcare coverage 
and improve healthcare delivery while reducing the federal budget 
deﬁcit and sets in motion signiﬁcant changes to the us healthcare 
system the world’s largest healthcare reform implementation 
impacts the pharmaceutical industry signiﬁcantly with some 
provisions directly targeting the sector expansion of healthcare 
coverage to an estimated 32 million uninsured people and the 
enhanced focus on ensuring quality healthcare will potentially 
increase patient access to appropriate treatments including 
prescription medicines efforts to expand access to government 
healthcare programmes require additional sources of funding  
the pharmaceutical industry including astrazeneca has shown  
its commitment to these efforts through its agreement among  
other things to help close the coverage gap in the medicare part d 
prescription drug programme and by paying an annual industry fee
astrazeneca annual report and form 20f information 2010 our strategy and performance our marketplace 11
estimated pharmaceutical market growth 20092014
 key
estimated sales – 2014 
estimated growth – 20092014  
compound annual growth rate
 north america sales 3981bn growth 44
 europe eu countries sales 2617bn growth 30
 south east  east asia sales 1320bn growth 177
 japan sales 1155bn growth 40
 latin america sales 944bn growth 134
source ims health 
 exmanufacturer prices at cer
 cis sales 266bn growth 105
 europe non eu countries sales 263bn growth 48
 south asia sales 261bn growth 142
 africa sales 209bn growth 86
 oceania sales 150bn growth 46
 middle east sales 133bn growth 86
overview overview additional information financial statements corporate governance business review while many of the coverage expansion provisions do not take effect 
until 2014 the legislation will have an immediate and direct impact 
on healthcare activities across stakeholders in the us healthcare 
system more generally it will have broad implications for how 
healthcare is delivered covered and reimbursed the pharmaceutical 
industry is working with policymakers and regulators during the 
implementation phases of healthcare reform with a view to ensuring 
that they strike a balance between containing costs while also 
promoting an environment that fosters medical innovation
in germany europe’s largest pharmaceutical market healthcare 
reforms brought into force this year are set to have a signiﬁcant 
longterm impact on the demands being placed on pharmaceutical 
manufacturers to produce information and evidence from clinical 
trials in addition these reforms include a number of shortterm 
measures to lower germany’s healthcare spending including 
provisions that allow for an increase in mandatory rebates and  
a freeze on drug prices similar shortterm measures have been 
implemented as a direct response to economic challenges in 
several other european markets in 2010 including spain portugal 
and greece each of these markets has either imposed price  
cuts or increased mandatory rebates on pharmaceutical  
products these actions present a considerable challenge for  
the researchbased pharmaceutical industry
nevertheless pricing remains one of the principal levers that 
countries can use to stimulate pharmaceutical innovation and 
investment recognition of this has led to a number of positive 
developments such as exemptions in japan the world’s second 
largest pharmaceutical market for certain innovative medicines  
from the country’s biennial price cuts
more information regarding the impact of price controls and 
reductions as well as the impact of healthcare reform in the us can 
be found in the principal risks and uncertainties section from page 
96 the principal aspects of price regulation in our major markets 
are described further in the geographical review from page 70
rd productivity 
over the last 30 years investment in rd in the us has increased 
from 2 billion to 45 billion a year whereas approvals by the fda 
have generally remained at 2530 a year against this background 
the researchbased pharmaceutical industry is pursuing increased 
productivity to ensure a strong pipeline of commercially viable 
medicines for launch the challenge now is greater than ever with 
the pursuit of newer more challenging biological targets in an 
attempt to increase the quality of candidates progressed through 
development novel paradigms are being employed for less 
wellvalidated targets while clinical ‘proof of concept’ is now  
the deﬁning measure of success
organisationally companies are addressing this challenge in a 
variety of ways some companies are employing lean business 
improvement tools andor shared risk operating models to bring 
potential drug candidates to the proof of concept milestone  
others have sought to increase output with limited incremental  
cost or restructured rd functions to promote innovation and 
entrepreneurship some companies have acquired others with 
synergistic development pipelines
regulatory requirements
pharmaceuticals is one of the most regulated industries this 
reﬂects the public interest in safeguarding patients while efforts  
to harmonise these regulations globally are increasing their  
number and impact continue to grow thereby raising the cost  
of doing business given the nature and geographic scope of our 
business we maintain important interactions with many health 
authority regulatory bodies in numerous countries in our largest 
markets these bodies include the fda in the us and the european 
commission and the ema in the eu regulators are also continuing 
to apply a more systematic approach to safety assessment and  
to the management of known and emerging risks both before  
and after a medicine is approved at the same time there is growing 
public demand for access to and transparency of data especially 
clinical data to understand the overall risk and beneﬁt and the 
rationale for a health authority’s decisions while transparency  
and cooperation between health authorities today is becoming 
routine this cooperation does not always lead to identical 
regulatory outcomes 
clinical trials are being conducted across a number of countries  
and regions this requires a comprehensive understanding of  
the differing regional determinants of safety efﬁcacy and clinical 
practice as well as knowledge of local ethics human subject 
protection and good clinical practice requirements in order to 
support the registration of our products in a given regulatory 
jurisdiction programmes providing foreign clinical trial data must 
meet the requirements of local health authorities to ensure 
relevance to their speciﬁc population 
health authorities are also increasingly interested in the efﬁcacy  
of pharmaceuticals after they have been approved which can also 
result in additional regulations this trend reﬂects the increasing 
pressures from both health technology assessors and payers to 
assess not only the safety of our products but also their relative 
effectiveness in the healthcare system 
competition
our main competitors are other researchbased pharmaceutical 
companies that develop and sell innovative patentprotected 
prescription medicines and vaccines as well as smaller 
biotechnology and vaccine companies
generic versions of drugs are very competitive because 
manufacturers of generic drugs price them at a signiﬁcantly lower 
level than the innovator equivalents this is partly because generic 
manufacturers do not invest the same amounts in rd or market 
development as researchbased pharmaceutical companies and 
therefore do not need to recoup that investment such competition 
has traditionally occurred when patents expire but can also  
occur where the validity of patents is being disputed or has been 
successfully challenged before expiry such early challenges by 
generics to patents on innovative products have increased and 
generic companies are increasingly willing to launch generic 
products ‘at risk’ in other words prior to resolution of the relevant 
patent litigation this can result in signiﬁcant market presence for 
the generic equivalent of an innovative product during the period  
in which such patent litigation remains unresolved even though  
the courts may subsequently rule that such product is properly 
protected by a valid patent the unpredictable nature of such patent 
litigation has led innovators to seek to settle such challenges on 
terms acceptable to both innovator and generic manufacturer 
however some competition authorities have sought to challenge 
the scope or even availability of settlement agreements of this type
to date biologics have sustained longer lifecycles than traditional 
pharmaceuticals and have faced less generic competition this is 
because the manufacturing process for biologics is generally more 
complex than it is for small molecule medicines and it is signiﬁcantly 
harder to produce an identical copy of a biologic than it is a small 
molecule medicine however some biologics are or will become 
subject to competition from ‘biosimilars’ as regulatory authorities in 
europe and the us continue implementing abbreviated approvals 
processes for biosimilars
astrazeneca annual report and form 20f information 2010 12 our strategy and performance our marketplace
our strategy and performance astrazeneca annual report and form 20f information 2010
acute coronary syndromes – or acs –  
is a term used to describe sudden chest 
pain and other symptoms caused by an 
insufﬁcient blood supply to the heart they 
are the most common manifestation of 
coronary heart disease chd with over  
25 million occurrences in the developed 
world each year despite the availability of 
current treatment options data suggests 
that up to 15 of patients die within one 
year of their cardiovascular event 
brilintabrilique ticagrelor tablets is an oral antiplatelet 
treatment we have developed for acs the clinical 
development for brilintabrilique included the plato study 
one of the largest clinical trials we have ever undertaken 
involving 18624 patients in 43 countries plato was 
designed to reﬂect current clinical management of acs 
patients and to establish whether brilintabrilique could 
improve cardiovascular outcomes beyond those afforded by 
clopidogrel plavix™iscover™ the overall plato results 
demonstrated the superiority of ticagrelor in reducing heart 
attacks and cardiovascular death in patients with acs the 
data has provided the basis for regulatory ﬁlings worldwide
for more than half a century astrazeneca has been at the 
forefront of rd in cardiovascular diseases brilintabrilique 
was discovered at our laboratories in the uk and represents 
another example of our commitment to developing and 
delivering innovative medicines that make a meaningful 
difference to patient health
      who 
can help 
me survive 
a heart 
attack
because health connects us all
for more information go to the therapy area review 
from page 50