what science can do
astrazeneca annual report and form 20f information 2014 welcome to the astrazeneca annual report and form 20f information 2014
at astrazeneca each and every one of us is bold  
in the belief that science should be at the centre  
of everything we do   
science compels us to push the boundaries of what is 
possible we trust in the potential of ideas and pursue 
them alone and with others until we have transformed  
the treatment of disease
astrazeneca what science can do
see what science can do…
the future of treatment for many of today’s diseases lies in uncovering mechanisms that are newly emerging or 
are still to be discovered we believe the best way to help patients is to focus on breakthrough science to discover 
these mechanisms and develop novel targeted therapies that interact with them
this is at the heart of our business and our purpose as a company to push the boundaries of science to deliver 
lifechanging medicines
…make hearts  
healthier
…help people  
breathe easier
…help more people  
survive cancer
important information for readers of this annual 
report for more information in relation to the inclusion of 
reported performance core financial measures and constant 
exchange rate cer growth rates as used in this annual report 
please see the financial review on page 72 throughout this 
annual report growth rates are expressed at cer unless 
otherwise stated
definitions the glossary and the market definitions table from 
page 239 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 annual report
use of terms in this annual report unless the context 
otherwise requires ‘astrazeneca’ ‘the group’ ‘we’ ‘us’ and ‘our’ 
refer to astrazeneca plc and its consolidated entities
cautionary statement regarding forwardlooking 
statements a cautionary statement regarding forwardlooking 
statements and other essential information relating to this annual 
report can be found on page 243
directors’ report the following sections make up the 
directors’ report which has been prepared in accordance 
with the requirements of the companies act 2006 
 corporate governance report
 audit committee report
 development pipeline
 responsible business
 shareholder information 
 corporate information
strategic report the following sections make up the strategic 
report which has been prepared in accordance with the 
requirements of the companies act 2006
 astrazeneca at a glance
 chairman’s statement
 chief executive officer’s review
 strategy
 therapy area review
 business review
 resources review
 financial review
front cover  
oncology combination therapies
astrazeneca is combining biologic and small molecule therapies for the treatment of cancer these combinations not only target the tumour directly but help boost the body’s own 
immune system to induce tumour cell death
 for more information see page 36  for more information see page 40  for more information see page 44 inside our strategic report
dear shareholder 
our strategic report is designed to help you assess how 
the board of directors performed in 2014 in promoting the 
success of astrazeneca it begins with an overview of 
astrazeneca and our 2014 performance and includes 
statements from our chairman and chief executive officer 
it also includes a description of our strategy business model 
key performance indicators principal risks governance 
executive remuneration therapy areas business activities 
and resources as well as a financial review of 2014 
strategy
our strategic priorities measures of success principal risks 
governance and executive remuneration
business model 10
lifecycle of a medicine 12
marketplace 14
strategic priorities 18
key performance indicators 20
risk overview 24
governance and remuneration 26
board of directors 28
senior executive team 30
therapy area review
our portfolio pipeline projects priorities capabilities and 
activities in our therapy areas
therapy area overview 32
cardiovascular and metabolic diseases 35
oncology 40
respiratory inflammation and autoimmunity 44
infection neuroscience and gastrointestinal 48
business review
our activities across the entire lifecycle of a medicine 
research and development   52
manufacturing and supply 56
sales and marketing 59
resources review
the resources we use to achieve our strategy
employees 62
relationships 65
intellectual property 68
infrastructure 69
financial review
a financial review of 2014 70
links to more information are denoted  
with the following symbols
for more information see  
wwwastrazenecacom
for more information
within this annual report
this annual report is also available on our website  
wwwastrazenecacomannualreport2014
contents
strategic report
astrazeneca at a glance 2
chairman’s statement 4
chief executive officer’s review 6
strategy 10
therapy area review 32
business review 52
resources review 62
financial review 70
corporate governance
corporate governance report 86
audit committee report 96
directors’ remuneration report 100
financial statements
auditor’s reports 130
consolidated statements 134
group accounting policies 138
notes to the group financial statements 143
additional information
development pipeline 197
patent expiries 201
risk 203
geographical review 220
responsible business 227
financials prior year 229
shareholder information 232
corporate information 237
trade marks 238
glossary 239
index 242
1 astrazeneca annual report and form 20f information 2014
corporate governance financial statements additional information strategic report strategic report
astrazeneca at a glance
we are a global scienceled 
biopharmaceutical business we are  
one of only a handful of companies to 
span the entire lifecycle of a medicine 
from research and development to 
manufacturing and supply and the global 
commercialisation of primary care and 
specialty care medicines
we operate in more than 100 countries 
and our innovative medicines are used  
by millions of patients worldwide 
financial highlights
revenue  
up 3 at cer to 26095 million
core operating profit  
down 13 at cer to 6937 million
net cash flow from operating activities 
down 5 at actual rate of exchange  
to 7 058 million
261bn 69bn 71bn
2014
2013
2012
26095m
25711m
27973m
2014
2013
2012
7058m
7400m
6948m
2014
2013
2012
6937m
8390m
11159m
proposition to investors
business model from page 10
a global business
colocating around three  
strategic rd centres
• cambridge uk 
• gaithersburg maryland us
• mölndal sweden
 18800 
employees in europe  
excluding russia  
327
5300 
employees in asia pacific  
excluding china  
japan and russia  
92
9700 
employees in china  
169
 1 500 
employees in 
russia  
26
2400 
employees in  
middle east  
and africa  
42
3500 
employees in 
central and  
south america  
61
2800 
employees in japan 
48
 13500 
employees in  
north america  
235 
…and a talented 
workforce 
committed to 
achieving our 
purpose
…disciplined 
capital allocation 
and a commitment  
to a progressive 
dividend…
…distinctive  
rd capabilities 
and a growing 
latestage 
pipeline…
…with a focused 
onmarket 
portfolio in three 
main therapy 
areas and a 
strong global 
commercial 
presence…
astrazeneca is a global scienceled 
biopharmaceutical business
  a c h ie v e s c ie n t ifi c  
leadership
  r e t u rn t o  
growth
  be a great place  
to work
strategic priorities
 strategic priorities from page 18
57500 
employees worldwide
10200 
employees in manufacturing 
and supply
9000
employees in rd
34800
employees in sales and 
marketing
note all employee numbers are 
approximate as at 31 december 2014
growth drivers
  emerging markets revenue rose by 12 to 5827m 
  japan revenue fell 3 due to mandated  
biennial price cuts increased use of generics  
and nexium recall in the fourth quarter 
2 astrazeneca annual report and form 20f information 2014 reported operating profit  
down 31 at cer to 2137 million
core eps  
for the full year down 8 at cer to 428
reported eps  
for the full year down 34 at cer to 098 
21bn 428 098
 therapy area review from page 32
therapy areas
cardiovascular  
and metabolic diseases
oncology respiratory inflammation  
and autoimmunity
infection neuroscience  
and gastrointestinal
leading medicines by sales value
1
crestor 
for managing 
cholesterol levels 
2012 6253m
2013 5622m
5512m  
2014 1
iressa 
for lung cancer
2012 61 1m
2013 647m
623m  
2014 1
pulmicort
3
  
for asthma 
2012 866m 
2013 867m
946m  
2014 11
nexium 
for acidrelated 
diseases
2012 3944m
2013 3872m
3655m 
2014 4
seloken 
toprolxl 
for hypertension 
heart failure and 
angina 
2012 918m
2013 750m
758m  
2014 4
faslodex 
for breast cancer
2012 654m 
2013 681m
720m  
2014 7
symbicort
4
 
for asthma 
and copd
2012 3 194m
2013 3483m 
3801m  
2014 10
seroquel xr  
for schizophrenia 
bipolar disorder  
and major 
depressive  
disorder
2012 1509m 
2013 1337m 
1224m  
2014 8
onglyza
6
 
for type 2  
diabetes
2012 323m
2013 378m
820m  
2014 119
zoladex  
for prostate and 
breast cancer
2012 1093m
2013 996m
924m  
2014 4
synagis  
for rsv a 
respiratory  
infection  
in infants 
2012 1038m 
2013 1060m
900m  
2014 15
growth drivers
brilintabrilique revenue rose by 70  
to 476 million
diabetes franchise revenue rose by 
139 to 1870 million aided in part  
by the acquisition of bms’s share  
of the diabetes alliance a strong  
us farxiga launch and good uptake  
of bydureon pen
oncology became the sixth growth 
platform in january 2015 several 
potential submissions in 2015 to 2016 
and expected to contribute largest 
proportion of pipelinedriven revenue 
growth with potential to grow to 
onequarter of sales by 2023
respiratory franchise revenue rose  
by 10 to 5063 million with strong 
symbicort performance in the us
value creation through scienceled 
rd collaborations and licensing such 
as the bace inhibitor alliance with lilly 
for alzheimer’s disease
in the pipeline
2
phase iii phase iii phase iii phase iii phase iii phase iii phase iii phase iii
4 5 36 15 20 8 15 4
lcm
5
  
projects
discontinued 
projects
lcm
5
  
projects
discontinued 
projects
lcm
5
  
projects
discontinued 
projects
lcm
5
  
projects
discontinued 
projects
15 1 2 2 3 4 6 2
1
  indications may vary from country to country
2
  nmes significant additional indications and lcm projects
3
  includes all formulations and devices
4
 includes all devices
5
 lifecycle management 
6
  includes revenue for kombiglyze xrkomboglyze
2014
2013
2012
2137m
3712m
8148m
2014
2013
2012
428
505
683
2014
2013
2012
098
204
495
3 astrazeneca annual report and form 20f information 2014
strategic report strategic report
chairman’s statement
dear shareholder
as 2014 finished it brought to a close  
an exceptional year for astrazeneca  
we ended it fully focused on the  
delivery of our strategy as an 
independent company this means 
turning our attractive growth prospects 
and a rapidly progressing pipeline  
into lifechanging medicines and  
value for shareholders
in his review on the following pages  
your chief executive officer outlines the 
progress we made during the year in 
delivering our strategic priorities i would  
like to concentrate on the context in  
which that progress was made and the 
implications for you our owners
clear decisions responsibly made
when pfizer approached astrazeneca 
during 2014 our responsibilities as directors 
were clear to act in a way that promoted 
the success of the company for the benefit 
of its shareholders in addition to assessing 
the value and deliverability of pfizer’s 
proposals we had to have regard  
to the longterm consequences of our 
decisions the interests of employees 
relationships with customers our impact  
on the wider community including patients 
and the reputation of the company at each 
stage of the process it was my duty as 
chairman to ensure we carried out our 
deliberations responsibly with those duties 
in mind after extensive review and 
discussions your board rejected pfizer’s 
various proposals we did so because
  the proposals fell short of astrazeneca’s 
value as an independent scienceled 
company
  astrazeneca had excellent momentum in 
the delivery of our clearly defined strategy 
underpinning the board’s confidence in 
our longterm revenue targets and 
profitability
  pfizer’s proposals brought uncertainty 
and risks for astrazeneca shareholders
in the wake of that decision i believe  
we have taken full advantage of the 
opportunity to galvanise employees and 
build on our demonstrable progress as  
an independent company 
a responsible business
of course acting responsibly is not 
restricted to the astrazeneca boardroom 
it applies to all our activities external 
recognition is particularly helpful in providing 
independent validation of our performance 
i was therefore pleased that we were once 
again listed in the dow jones sustainability 
world index in 2014 we also retained our 
listing on the european index for the seventh 
year running
in the biennial access to medicines index 
we were disappointed to find ourselves in 
15th position we remain determined to find 
new ways to improve access to healthcare 
i am confident that our healthy heart africa 
programme which aims to improve the lives 
of hypertensive patients across africa 
through increased education screening 
diagnosis and treatment will make an 
important contribution
improved access matters because our 
innovative medicines can make a global 
contribution to better health they help 
increase survival rates and improve quality 
of life for patients in important areas of 
medical need
32bn
 
net cash shareholder distributions 
increased by 9 actual growth to  
3242 million 2013 2979 million  
2012 5871 million
4 astrazeneca annual report and form 20f information 2014 revenue … was in line 
with our upgraded 
guidance and reflected the 
fact that the accelerating 
performance of our 
growth platforms more 
than offset the impact of 
loss of exclusivity”
loss of exclusivity
the loss of exclusivity referred to above and 
its timing has had and continues to have 
an impact on astrazeneca over the coming 
years this trend will continue as medicines 
such as nexium and crestor continue to 
lose exclusivity in key markets including the 
us and europe
of course loss of exclusivity is a normal 
part of an innovative medicine’s lifecycle 
it comes at the end of the period when a 
new medicine is safeguarded from being 
copied so that we can generate returns 
on the investment we have made a 
wellfunctioning intellectual property system 
of this type which rewards innovation is 
the principal economic safeguard in our 
industry it is why we commit significant 
resources to establishing and defending 
our patent protections 
the challenging environment 
continues
more generally we continue to face 
challenging market conditions while the 
world pharmaceutical market is growing 
and underlying demographic trends remain 
favourable to longterm growth many of the 
drivers of demand and supply in the sector 
are under pressure
on the demand side we face increased 
competition from generic drugs as some 
of the world’s most successful medicines 
come off patent in addition securing an 
appropriate level of reward for our medicines 
is becoming more difficult in the face of 
intense pricing pressures particularly in 
financial performance in 2014
revenue was up 3 to 26095 million 
which was in line with our upgraded 
guidance on an actual basis revenue  
was up 1 as a result of the negative 
impact of exchange rate movements  
core operating profit in 2014 was down 
13 to 6937 million while core eps  
were 428 down 8
our performance reflected the delayed 
launch of generic nexium esomeprazole  
in the us as well as the accelerating 
performance of our growth platforms which 
now contribute over half of our revenues 
taken together they more than offset the 
impact of loss of exclusivity our strong 
performance in emerging markets was a 
particular highlight with china becoming 
our second largest market
established markets facing rising healthcare 
costs on the supply side the industry faces 
an ongoing rd productivity challenge 
costs have risen significantly and while in 
2014 the fda approved the highest number 
of new medicines for 18 years there is still 
some way to go in improving the probability 
of success of our projects
return to shareholders
consistent with our progressive dividend 
policy to maintain or grow the dividend 
each year the board has recommended 
a second interim dividend of 190 per 
ordinary share this brings the dividend for 
the full year to 280 per ordinary share
the board regularly reviews its distribution 
policy and its overall financial strategy to 
strike a balance between the interests 
of the business financial creditors and 
shareholders we continue to target a 
strong investment grade credit rating 
outlook
as we look to the future we expect sales 
revenue to decline by mid singledigit 
percent at cer in 2015 consistent with  
our business model we will continue to 
seek externalisation revenue from 
collaborations and licensing select products 
and technologies core eps is expected  
to increase by low singledigit percent at 
cer this expectation involves a number of 
assumptions including the imminent launch 
of a nexium generic in the us market
appreciation
before closing and on behalf of the  
board i want to thank the employees  
of astrazeneca their outstanding efforts 
helped us achieve so much in 2014  
towards leading in science and returning to 
growth in particular i want to express my 
appreciation to pascal and all the members 
of the senior executive team for showing 
such inspirational leadership throughout  
a challenging year
finally i would like to thank all my fellow 
directors for the quality of their contributions 
and conscientiousness they brought to our 
discussions throughout an exceptionally 
busy 2014
leif johansson 
chairman
distributions to shareholders m 
2014 2013 2012
dividends 3521 3461 3665
proceeds from issue of shares 279 482 429
share repurchases
1
– – 2635
total 3242 2979 5871
dividend per ordinary share  
2014 2013 2012
dividend per ordinary share 280 280 280
dividend for 2014
 pence sek payment date
first interim dividend 090 531 620 15 september 2014
second interim dividend 190 1250 1562 23 march 2015
total 280 1781 2182
1
 the share repurchase programme was suspended effective 1 october 2012
5 astrazeneca annual report and form 20f information 2014
strategic report strategic report
chief executive officer’s review
respiratory inflammation and 
autoimmunity
the american college of rheumatology 
annual meeting in boston ma  
accepted more than 15 abstracts of 
astrazeneca work
we are making significant progress in the 
ria therapy area eight projects are in 
phase iii or registration in particular we are 
leveraging biologics in severe asthma and 
copd and developing several promising 
assets in inflammation and autoimmune 
disease areas these include dermatology 
gout systemic lupus and rheumatoid 
arthritis in november we strengthened our 
own capabilities by acquiring the rights to 
almirall’s respiratory business and inhalation 
device subsidiary which will help us develop 
the next generation of devices that meet 
patient needs we further strengthened our 
respiratory portfolio through our agreement 
– announced in february 2015 – to acquire 
the rights to actavis’s branded respiratory 
business in the us and canada
phase iii studies began in 2014 for 
tralokinumab for the treatment of severe 
inadequately controlled asthma 
furthermore we decided to progress 
benralizumab to phase iii in copd based 
on the finding that patients with elevated 
eosinophils seem to benefit from the drug
highlighting the potential of our inflammation 
and autoimmunity biologics portfolio two 
phase iib studies for mavrilimumab and 
sifalimumab both met their primary 
endpoints results from phase iii trials for 
brodalumab also met all primary endpoints 
treatment of women with brcamutated 
brcam ovarian cancer who have had  
very limited treatment options to date  
the story of lynparza shows what 
astrazeneca can achieve by following  
the science less than three years ago 
lynparza development was discontinued 
following phase ii study results these 
indicated that the progressionfree survival 
pfs benefit seen in the overall ovarian 
cancer population was unlikely to translate 
into an overall survival benefit attempts to 
identify a suitable dose of the new tablet 
formulation also proved challenging 
our teams were undeterred they saw  
an opportunity to explore why the data 
showed better efficacy in patients with 
brcam ovarian cancer and sought to 
reanalyse the phase ii data this included 
obtaining the brcam status for almost  
all patients – itself a great achievement 
looking at the data again made it clear that 
the team was right – lynparza significantly 
prolonged pfs compared with placebo in 
patients with brcam ovarian cancer in 
parallel the team also identified a suitable 
dose and tablet formulation
this really does exemplify our values in 
action and demonstrates our determination 
to push the boundaries of science to deliver 
lifechanging medicines we continue to 
explore the potential of this exciting new 
medicine and additional latestage clinical 
studies are underway to explore lynparza’s 
benefit for a variety of other cancers
astrazeneca has completed the first phase 
in its strategic journey we have rebuilt 
strong foundations for sustainable delivery 
and are on track to return to growth by 2017  
fuelled by an exciting portfolio oncology 
has become astrazeneca’s sixth growth 
platform and will deliver lifechanging 
medicines to patients and longterm growth 
achieve scientific leadership
the changes we have made in the last  
two years have transformed astrazeneca’s 
pipeline and accelerated clinical 
programmes for example we have already 
achieved our 2016 target for the number of 
potential medicines in phase iii – three years 
ahead of schedule the changes have also 
helped towards our goal of achieving 
scientific leadership in our three main 
therapy areas respiratory inflammation 
and autoimmunity ria cardiovascular and 
metabolic diseases cvmd and oncology
we achieved a record 12 approvals in 2014 
and while we must expect occasional 
setbacks such as the discontinuation of  
a few earlystage projects we have every 
reason to be confident in our pipeline in 
addition to launching new medicines such 
as lynparza and movantikmoventig by the 
end of 2016 we anticipate
  12 to 16 phase ii starts
  14 to 16 nme and major line extension 
regulatory submissions
  8 to 10 nme and major line extension 
approvals
a highlight of the year came in december 
when lynparza was approved in the us  
and eu as the first parp inhibitor for the 
dear shareholder
2014 was a remarkable year that shows 
what astrazeneca can achieve by 
following the science
we strengthened and accelerated our 
pipeline and increased the momentum 
behind our growth platforms our efforts 
are creating significant value for patients 
and shareholders
   transaction subject to competition law clearances as well as 
other customary terms and conditions
6 astrazeneca annual report and form 20f information 2014 for the treatment of moderate to severe 
psoriasis with two of these trials showing 
superior efficacy compared to the current 
standard of care following topline results 
from the phase iii programme for lesinurad 
in combination with xanthine oxidase 
inhibitors in gout patients our regulatory 
filing in the eu has been accepted
cardiovascular and metabolic diseases
the 74th scientific sessions of the 
american diabetes association in san 
francisco ca accepted for presentation 
43 abstracts reporting results of our rd 
in diabetes the annual meeting of the 
european association for the study of 
diabetes in vienna austria accepted 29 
abstracts for presentation 
a record total of six major market approvals 
in 2014 for medicines that treat type 2 
diabetes further demonstrates how we are 
achieving scientific leadership we also had 
positive results from a phase iii study of 
saxagliptindapagliflozin combination in 
patients with type 2 diabetes and are 
progressing a regulatory filing in the us
the acquisition in february 2014 of bms’s 
share of the diabetes alliance was a 
significant event for astrazeneca and we 
now have one of the broadest noninsulin 
antidiabetic portfolios in the industry our 
diabetes strategy is to shift the treatment 
paradigm towards early use of combination 
therapies help accelerate the achievement 
of patients’ treatment goals and potentially 
delay disease progression
2014 was a strong year for our growth 
platform brilintabrilique both in terms of 
revenue growth and news flow the us 
strategic priorities overview
achieve scientific leadership
  12 approvals of nmes or major lcm projects in major markets 
 − cvmd bydureon pen us and eu farxigaforxiga us and japan xigduo 
xr us and xigduo eu for type 2 diabetes myalept us for generalised 
lipodystrophy epanova us for dyslipidaemia
 − oncology lynparza us and eu for brcamutated ovarian cancer 
 − neuroscience movantikmoventig us and eu for opioidinduced  
constipation
  1 1 phase iii starts including 5 nmes medi4736 and azd9291 for nonsmall  
cell lung cancer tremelimumab for mesothelioma roxadustat for chronic kidney 
disease and endstage renal disease and tralokinumab for severe asthma 
  6 nme or major lcm regulatory submissions in major markets
 − cvmd bydureon pen japan and saxagliptindapagliflozin fdc us
 − oncology iressa us and lynparza us
 − inflammation lesinurad us and eu
  9 projects discontinued
  3 acquisitions the rights to almirall’s respiratory franchise and inhalation  
device subsidiary definiens and completion of the acquisition of bms’s share  
of the diabetes alliance
return to growth
  3 increase in revenue to 26095 million
 − accelerating performance of growth platforms more than offset impact  
of loss of exclusivity
  15 increase in growth platforms revenue contributing 53 of total revenue
 − brilintabrilique 70 continued global progress
 − diabetes  139 successful farxigaforxiga launch and good uptake  
of bydureon pen in the us
 − respiratory  10 emerging markets growth of 27 and decelerating  
us growth of 15
 − emerging markets  12 to 5827 million
 − japan revenue 3 due to mandated biennial price cuts increased use  
of generics and nexium recall in the fourth quarter
  us revenue was up 4 to 10120 million with europe down 1 at 
6638 million established row revenue was down 4 to 3510 million 
  22 growth in china making it our second largest market
great place to work
  our 2014 employee survey showed understanding of our strategy up by  
14 percentage points to 88 compared with the previous survey in 2012 –  
4 points above the global high performing company norm belief in  
our direction rose by 18 points to 86
  following transactions some 4 100 bms and almirall employees were 
integrated into astrazeneca
  simplified organisation with 75 of employees now within six management 
steps of the ceo 40 in 2012
do business responsibly
  astrazeneca launched the healthy heart africa programme to address 
hypertension in africa for some of the poorest people in the community
…our business shape  
is changing to become 
more sustainable durable 
and profitable”
7 astrazeneca annual report and form 20f information 2014
strategic report strategic report
chief executive officer’s review continued
focus on…personalised 
healthcare
by developing diagnosticled targeted 
therapies personalised healthcare 
improves our ability to identify patients 
most likely to benefit from our 
medicines in 2014 we entered into 
collaborations with diagnostic and 
biomarker companies including 
illumina inc qiagen and roche  
to support the development of 
companion diagnostics for our 
investigational oncology medicines 
we also acquired definiens a pioneer 
of a technology that improves the 
identification of biomarkers in tumour 
tissue through these transactions 
we hope to reduce clinical trial time 
and cost and improve response rates 
and the delivery of the right medicines 
to the right patients
investigational nonsmall cell lung  
cancer nsclc compound azd9291 
azd9291 is a highly selective irreversible 
inhibitor of both the activating sensitising 
epidermal growth factor receptor egfr 
mutation and the resistance mutation 
t790m the fda has granted it 
breakthrough therapy designation as  
well as orphan drug and fast track status  
this will allow us to speed the medicine’s 
development and we are planning to file  
for approval in the us in the second  
quarter of 2015 at just over two years  
after the compound entered clinical  
testing this would represent a tremendous 
achievement
in a development that enhances its value to 
patients and demonstrates our commitment 
to personalised healthcare iressa now 
includes bloodbased diagnostic testing in 
its european label for patients unable to 
provide a suitable tumour sample in the us 
the fda has accepted a filing for iressa as  
a targeted monotherapy for the 1st line 
treatment of patients with advanced or 
metastatic egfr mutationpositive nsclc
immunooncology has the potential to 
transform the way cancer patients are 
treated by harnessing the body’s own 
immune system our broad portfolio 
includes almost 30 combination trials either 
underway or planned in a crowded field  
we are particularly well positioned to explore 
synergistic combinations of immunotherapies 
both with each other and with our own 
highly targeted small molecules in 2014  
we initiated a phase iii immunotherapy study 
for medi4736 in patients with nsclc 
collaborations such as those made in 2014 
with incyte advaxis kyowa hakko kirin 
department of justice’s closure of its 
investigation into the plato clinical trial  
in august reaffirmed our confidence in 
brilintabrilique and the plato trial in 
september new data indicated that the 
profile of brilintabrilique was comparable 
whether administered prehospital or 
inhospital in st segment elevation 
myocardial infarction stemi patients  
most recently in january 2015 we 
announced that the pegasustimi 54 
study a largescale outcomes trial involving 
over 21000 patients had met its primary 
endpoint in both 60mg and 90mg doses 
the study demonstrated that when taken  
in combination with aspirin brilintabrilique 
reduced more major cardiovascular 
thrombotic events in patients with a history 
of heart attack than using aspirin alone
oncology
we presented over 40 scientific abstracts 
related to our investigational medicines to 
the american society of clinical oncology 
meeting in chicago il and the european 
society of medical oncology 2014 
congress in madrid spain 
astrazeneca has a deeprooted heritage  
in oncology our vision is to help patients  
by redefining the cancer treatment 
paradigm our broad pipeline of next
generation medicines is focused on four 
main disease areas breast ovarian lung 
and haematological cancers for these we  
are targeting immunotherapy the genetic 
drivers of cancer and resistance dna 
damage repair and antibodydrug 
conjugates adcs
the potential of our oncology pipeline is 
highlighted by our small molecule 
 research and development from  
page 52
focus on…our pipeline
at 31 december 2014 our pipeline 
comprised 133 projects including 1 18 in 
clinical development and 16 approved or 
launched our latestage pipeline has 
transformed faster than we anticipated with 
13 nmes in phase iiipivotal phase ii or 
under regulatory review compared with the 
original target of eight set in march 2013 
our earlystage pipeline has also grown 
rapidly through a sharp focus on novel 
science and technologies providing a 
sustainable discovery engine behind our 
main therapy areas
 therapy area review from page 32
development projects 
1
  includes eight projects that are either approved or launched in at least one market includes one project that is filed in at least one market
2
  includes eight projects that are either approved or launched in at least one market includes one project that is filed in at least one market
3
  included four projects that were either approved or launched in at least one market included four projects that were filed in at least one market
4
  included five projects that were either approved or launched in at least one market included one project that was filed in at least one market
5
  included five projects that were either approved or launched in at least one market
6
 included eight projects that were filed approved or launched in at least one market 
7
  phase iiipivotal phase ii or under regulatory review
2014
2013
2012
40
33
29 24
35 32
1
26
2
27
7
5
23
6
19
3
20
4
  p h a s e i  phase ii  latestage 
development
7
 lcm projects
8 astrazeneca annual report and form 20f information 2014 pharmacyclics and janssen are accelerating 
our own rd efforts the acquisition of 
definiens further strengthened our 
immunooncology capabilities as described 
in the panel on the left 
return to growth
the steps we took to achieve scientific 
leadership in 2014 were complemented by 
our progress towards returning to growth 
we are doing this through maximising the 
potential of our existing medicines 
leveraging our global scale and investing in 
our growth platforms and key geographies
our commercial expertise and global scale 
including a strong presence in emerging 
markets helped maximise the value of our 
marketed brands in our main therapy areas 
which delivered over twothirds of total 
revenues in 2014
our five growth platforms – brilintabrilique 
diabetes respiratory emerging markets and 
japan – are sustaining nearterm growth  
as we progress towards our longterm 
ambitions these platforms accounted for 
more than half our revenues in 2014 we will 
continue to focus on driving growth in these 
areas with the addition of oncology as a 
growth platform in 2015 as we navigate a 
period that will see some of our established 
products losing their exclusivity
as already indicated targeted business 
development reinforces our main therapy 
areas a focus on earlystage academic  
and biotech alliances supports our 
longterm pipeline aspirations at the same 
time strategic transactions such as those 
with bms and almirall support the 
latestage and marketed portfolio
in parallel with the pipeline transformation 
and leveraging our global scale and 
commercial expertise our business shape 
is changing to become more sustainable 
durable and profitable biologics now 
account for nearly half our pipeline  
this increases the probability of success  
of our projects and potentially enhances  
the longevity of our assets a greater focus 
on innovative delivery devices can offer 
choice to patients while also ensuring  
the durability of our products overall  
we believe the growing proportion of 
specialty care products in our portfolio  
will boost profitability
great place to work
we continue to drive our cultural 
transformation and operational simplification 
to support our strategic goals our efforts to 
nurture an enhanced culture of innovation 
and enterprise are having a positive impact 
across the organisation results from our 
2014 employee survey reflect the progress 
we have made employee understanding  
of our strategy was up 14 percentage points 
to 88 over the 2012 survey and belief in 
our direction was up 18 points to 86 a 
simpler management structure is helping 
sharpen our focus and remove barriers 
further accelerating decision making and 
increasing productivity
our activities in cambridge shown on the 
right highlight the benefit of colocating our 
rd around three strategic bioscience 
clusters in the us sweden and the uk 
these moves are making it easier for our 
researchers to collaborate with external 
partners – and with each other – to leverage 
our small and large molecule capabilities 
and our innovative technology to maintain 
the pace of pipeline development
appreciation
the year 2014 was remarkable for 
astrazeneca a period that might easily 
have distracted us with external events 
instead proved to be a time that 
strengthened the case for our future as an 
independent company all of this was due  
to the achievements of our employees 
partners and collaborators i would like to 
pay tribute to every one of them in doing 
so i would particularly like to welcome all 
those who have joined astrazeneca and 
share our passion for working in a company 
that follows the science that welcome 
includes fiona cicconi and luke miels who 
both joined in 2014 and became members 
of the senior executive team
all of us should be proud of what 
astrazeneca achieved in 2014 together  
we can be confident that by leading in 
science we will transform the lives of 
patients around the world in doing so  
we will return to growth and deliver value  
to our shareholders
pascal soriot 
chief executive officer
focus on…value creation
to ensure the full potential of our 
scienceled strategy is realised our 
business model is evolving to include 
value creation through collaboration 
outlicensing and divestments in 2014 
we established an alliance with lilly to 
codevelop and commercialise our 
bace inhibitor azd3293 for 
alzheimer’s disease as part of the 
european commission’s innovative 
medicines initiative we also secured 
partial funding for medi4893 a 
potential infection medicine in january 
2015 we completed the divestment of 
the raredisease drug myalept to 
aegerion this provides another 
example of additional value creation
 business model from page 10
focus on…cambridge
in 2014 we shared proposed  
designs for our global rd centre 
and corporate headquarters in 
cambridge uk as part of our plan to 
increase our proximity to worldclass 
bioscience clusters we also 
strengthened our partnership with  
the university of cambridge with four 
new collaborations and announced a 
collaboration with cancer research 
uk to establish a joint laboratory in the 
city focused on novel biologic cancer 
treatments of two collaborations with 
the uk medical research council  
one will create a joint facility for early 
drug discovery in our new rd 
centre and the second will fund 
projects aimed at better understanding 
the biology of disease
 research and development from  
page 52 employees from page 62
9 astrazeneca annual report and form 20f information 2014
strategic report strategic report  strategy
business model
our purpose and values drive what we do – and how we do it this includes our 
role in the marketplace strategic priorities measures of risk and success and 
determination to create value across every medicine’s lifecycle our governance 
and remuneration support this approach
strategic priorities
scienceled biopharmaceutical company in three main therapy areas
disciplined capital allocation commitment to progressive dividend
purpose and values
outputs
 lifechanging medicines
 –  improved health outcomes
 –  improved access to healthcare
 –  reduced healthcare costs
 –  community development
 revenue and cash flow
 returns to shareholders
inputs
 unmet medical need 
  economic social and  
political environment
 science and technology
 employees
 relationships
 ip
 infrastructure
productive rd
  platform of small molecules and biologics
  sustainable model and growing 
earlystage pipeline
  growing latestage pipeline with 
immunooncology strength
  p r o t e in e n g in e e r in g
strong business
  strong portfolio of established products
  global scale with emerging markets strength
  five platforms driving growth towards  
a balanced portfolio of primary care  
and specialty care medicines
  durability through devices and  
companion diagnostics
sustainable organisation
  innovative entrepreneurial culture
  strong talent base
  efficient and productive organisation
  balanced pipeline to drive  
sustainable growth
business model
how we create and sustain value over the lifecycle  
of a medicine across our chosen therapy areas
investment including targeted business 
development in the rd manufacturing and supply 
and sales and marketing of innovative medicines
investment including targeted business 
development in the rd manufacturing and supply 
and sales and marketing of innovative medicines
reinvestment of returns from sales collaborations 
outlicensing and divestments into the business and 
business development to develop and sustain the 
next generation of innovative medicines
 established products
 growth platforms
 pipeline
why astrazeneca is different
10 astrazeneca annual report and form 20f information 2014 purpose and values
we push the boundaries of science  
to deliver lifechanging medicines
our purpose underpins everything we  
do it gives us a reason to come to work 
every day it reminds us why we exist as  
a company it helps us deliver benefits to 
patients and create value for shareholders 
it also sets the context for our employees’ 
activities and the roles of our teams 
partners and other collaborators
we follow the science we put patients 
first we play to win we do the right thing 
we are entrepreneurial
these values determine how we work 
together and the behaviours that are integral 
to our drive for success our values guide 
our decision making define our beliefs  
and foster a strong astrazeneca culture
inputs
demographic trends are favourable to our 
industry’s longterm growth and innovative 
scientific research continues to deliver  
new ways of fulfilling unmet medical need  
as the marketplace section from page 14 
demonstrates however the economic 
social and political environment presents  
not only significant opportunities but 
challenges as well
to achieve our purpose we seek to 
maximise the value of our resources 
including our employees ip  partners  
and collaborators 
 resources review from page 62
we believe that few pharmaceutical 
companies if any can match our 
capabilities in small molecules biologics 
immunotherapies protein engineering  
and devices these distinctive capabilities 
allow us to produce combination therapies 
such as antibodydrug conjugates and 
customisable molecules targeted to specific 
patient populations we have further 
strengthened our portfolio pipeline and 
capabilities by investing in rd and 
pursuing licensing acquisition and 
collaboration opportunities 
we also have strong commercial franchises 
that focus on cardiovascular and metabolic 
diseases oncology and respiratory 
inflammation and autoimmunity and have 
combined a broad portfolio of primary care 
and specialty care medicines with a global 
reach we believe our capabilities pipeline 
and portfolio will enable us to build on our 
leading position in established markets and 
achieve further growth in emerging markets 
 business review from page 52
strategic priorities
our strategic priorities reflect how we aim  
to achieve our purpose they are to 
1 achieve scientific leadership
2 return to growth
3 be a great place to work
these priorities reflect the choices we have 
made to focus our rd and commercial 
investments prioritise and accelerate 
promising assets and business development 
and transform our innovation model and the 
way we work 
 strategic priorities from page 18
lifecycle of a medicine
for each of our therapy areas our activities 
span the entire lifecycle of a medicine  
from research and development to 
manufacturing and supply and the global 
sales and marketing of primary care and 
specialty care medicines
 lifecycle of a medicine overleaf 
we operate according to what we believe  
is a disciplined valuecreation framework 
this framework supports investment in our 
portfolio pipeline and growth platforms 
which generates cash flows that we return 
to investors and reinvest into the business 
and business development our business 
development activities include alliances 
collaborations inlicensing arrangements 
and acquisitions such as our acquisition of 
bms’s interest in the diabetes alliance and 
the strategic transaction with almirall to 
acquire its respiratory franchise and 
inhalation devices subsidiary
growth platforms
  brilintabrilique
  diabetes
  emerging markets
  respiratory
  japan
 strategic priorities from page 18
our business model also includes value 
creation through outlicensing and 
divestments in 2014 for example we 
established an alliance with lilly to 
codevelop and commercialise our bace 
inhibitor azd3293 for alzheimer’s disease 
in january 2015 we divested myalept to 
aegerion and our us rights to zestril and 
tenormin to alvogen these transactions 
allow us to leverage the capabilities and 
expertise of others focus our resources  
and deliver the greatest benefit to patients 
and shareholders 
the success of our business model 
depends on the creation and protection  
of our ip rights developing a new medicine 
is risky costly and time consuming and 
requires significant investment over many 
years with no guarantee of success for 
investments to be viable for our business 
and shareholders we must protect new 
medicines from being copied for a 
reasonable period of time 
the loss of key product patents has affected 
sales significantly in recent years and will 
continue to do so as such one of our main 
goals is to sustain the cycle of innovation 
and continually refresh our portfolio of 
patented products
outputs
returns to shareholders
revenue from the sale of our medicines 
generates cash flow which helps us  
fund business investment it also enables  
us to follow our progressive dividend policy 
and meet our debt service obligations  
this involves balancing the interests of  
our business financial creditors and 
shareholders 
 financial review from page 70
improved health
continuous scientific innovation is vital  
to achieving sustainable healthcare and 
creating value innovation creates value 
for example by
  improving health outcomes and 
transforming patients’ lives
  enabling healthcare systems to reduce 
costs and increase efficiency
  improving access to healthcare and 
healthcare infrastructure
  helping develop the communities in  
which we operate through local 
employment and partnering
11 astrazeneca annual report and form 20f information 2014
strategic report find potential medicine preclinical studies phase i studies phase ii studies phase iii studies regulatory submission  
and pricing
launch new medicine postlaunch research  
and development
patent expiry  
and generic entry
identify unmet medical need aligned 
with areas of scientific research 
explore and conduct pioneering 
science to understand the 
underlying disease biology and 
identify potential new medicines
begin the process of seeking patent 
protection for the potential medicine 
and assess manufacturing 
requirements
collaborate with academia research 
organisations and biotechnology 
and pharmaceutical companies to 
access the best science technology 
and medical opinion
conduct studies to evaluate if the 
potential medicine modifies the 
disease process and meets early 
safety requirements and the 
quantities to use when introducing 
into humans
determine likely efficacy side 
effect profile and maximum 
tolerable dose estimates 
inform regulatory authorities  
of the proposed trials that are  
to be conducted within the 
regulatory framework
conduct first time in  
man studies primarily 
designed to evaluate 
safety potential tolerated 
dose ranges and how  
the potential medicine is 
absorbed in distributed 
around and excreted by 
the body in some cases 
efficacy is also assessed 
these studies typically 
take place in small groups 
of healthy volunteers or  
in certain cases patients 
the results are measured 
against a target risk
benefit profile
begin to design a robust 
and costefficient 
manufacturing process 
conduct studies 
designed to evaluate the 
efficacy and tolerability  
of the medicine typically 
using small or 
mediumsized groups  
of patients and to 
determine the optimal 
doses establish proof 
of concept the results 
are measured against a 
target riskbenefit profile 
incorporate payer 
considerations to help 
ensure the economic 
and therapeutic value of 
a medicine is understood
based on the phase ii 
results design the phase 
iii programme to deliver 
data for regulatory 
approval validate clinical 
benefit and safety and 
establish pricing andor 
reimbursement
conduct studies 
typically in large patient 
groups designed to 
confirm the efficacy of 
and gather additional 
safety information for the 
medicine and evaluate 
the overall riskbenefit 
profile in the specific 
disease and proposed 
patient segments against 
the profile and goals
create appropriate 
branding for the launch  
of the new medicine
seek approval from regulatory 
authorities to manufacture market  
and sell the medicine
submit clinical data package that 
demonstrates the medicine’s safety 
profile and efficacy to regulatory 
authorities
regulatory authorities decide  
whether to grant approval based on  
the medicine’s safety profile efficacy 
and quality in some countries a  
pricing decision must also be made 
comparing the new medicine to 
existing alternative therapies
if there are gaps in understanding 
about the medicine at the time  
of approval regulatory authorities  
may request further data collection 
increasingly in realworld clinical 
settings
raise awareness of patient benefit 
and appropriate use and market  
and sell the medicine
clinicians begin to prescribe medicine 
and patients begin to benefit 
continuously monitor record and 
analyse reported side effects 
determine whether to update the 
side effect warnings to help ensure 
patient safety
assess realworld effectiveness and 
opportunities to support patients and 
prescribers to achieve maximum 
benefit from the medicine
conduct studies to further 
understand the benefitrisk profile 
of the medicine in larger andor 
additional patient populations
conduct lifecycle management 
activities to realise the medicine’s  
full potential and work to identify 
additional diseases or aspects of 
disease that may be treated by the 
medicine or better administration 
methods submit data packages with 
requests for lifecycle management  
to regulatory authorities for review  
and approval
typically when patents and  
other exclusivities protecting the 
medicine expire generic versions 
of the medicine enter the market
note this is a high level overview of  
a medicine’s lifecycle and is illustrative 
only it is neither intended to nor does it 
represent the lifecycle of any particular 
medicine or of every medicine discovered 
andor developed by astrazeneca or the 
probability of success or approval of any 
astrazeneca medicine
research and development
we have two autonomous biotech units medimmune 
and innovative medicines and early development imed 
to drive science and innovation in research and earlystage 
development
a single latestage development organisation – global 
medicines development gmd – is responsible for all projects 
delivered by the two earlystage development units
we are investing in the best science and technology whether  
it originates internally or externally products are added to our 
pipeline at any stage of development through collaboration  
licensing and acquisition
manufacturing and supply
a reliable manufacturing and supply operation ensures that we  
are able to deliver our medicines to patients around the world
our investment in continuous improvement helps us supply our 
medicines as efficiently as possible
sales and marketing
we are a global company with commercial activities in more 
than 100 countries focused on ensuring the right medicines  
are available and improving access to them
we are investing in our growth platforms and commercial 
capabilities to return the business to growth and deliver 
lifechanging medicines to patients
our activities are focused on meeting the needs of patients 
physicians and payers and are undertaken ethically and in 
accordance with our values
lifecycle of a medicine
strategic report  strategy
our activities span the entire lifecycle of a medicine from research and 
development to manufacturing and supply to the global sales and marketing  
of primary care and specialty care medicines that transform lives
research and 
development  
phases
1015 years
1 2 3
 research and development from page 52 
12 astrazeneca annual report and form 20f information 2014 find potential medicine preclinical studies phase i studies phase ii studies phase iii studies regulatory submission  
and pricing
launch new medicine postlaunch research  
and development
patent expiry  
and generic entry
identify unmet medical need aligned 
with areas of scientific research 
explore and conduct pioneering 
science to understand the 
underlying disease biology and 
identify potential new medicines
begin the process of seeking patent 
protection for the potential medicine 
and assess manufacturing 
requirements
collaborate with academia research 
organisations and biotechnology 
and pharmaceutical companies to 
access the best science technology 
and medical opinion
conduct studies to evaluate if the 
potential medicine modifies the 
disease process and meets early 
safety requirements and the 
quantities to use when introducing 
into humans
determine likely efficacy side 
effect profile and maximum 
tolerable dose estimates 
inform regulatory authorities  
of the proposed trials that are  
to be conducted within the 
regulatory framework
conduct first time in  
man studies primarily 
designed to evaluate 
safety potential tolerated 
dose ranges and how  
the potential medicine is 
absorbed in distributed 
around and excreted by 
the body in some cases 
efficacy is also assessed 
these studies typically 
take place in small groups 
of healthy volunteers or  
in certain cases patients 
the results are measured 
against a target risk
benefit profile
begin to design a robust 
and costefficient 
manufacturing process 
conduct studies 
designed to evaluate the 
efficacy and tolerability  
of the medicine typically 
using small or 
mediumsized groups  
of patients and to 
determine the optimal 
doses establish proof 
of concept the results 
are measured against a 
target riskbenefit profile 
incorporate payer 
considerations to help 
ensure the economic 
and therapeutic value of 
a medicine is understood
based on the phase ii 
results design the phase 
iii programme to deliver 
data for regulatory 
approval validate clinical 
benefit and safety and 
establish pricing andor 
reimbursement
conduct studies 
typically in large patient 
groups designed to 
confirm the efficacy of 
and gather additional 
safety information for the 
medicine and evaluate 
the overall riskbenefit 
profile in the specific 
disease and proposed 
patient segments against 
the profile and goals
create appropriate 
branding for the launch  
of the new medicine
seek approval from regulatory 
authorities to manufacture market  
and sell the medicine
submit clinical data package that 
demonstrates the medicine’s safety 
profile and efficacy to regulatory 
authorities
regulatory authorities decide  
whether to grant approval based on  
the medicine’s safety profile efficacy 
and quality in some countries a  
pricing decision must also be made 
comparing the new medicine to 
existing alternative therapies
if there are gaps in understanding 
about the medicine at the time  
of approval regulatory authorities  
may request further data collection 
increasingly in realworld clinical 
settings
raise awareness of patient benefit 
and appropriate use and market  
and sell the medicine
clinicians begin to prescribe medicine 
and patients begin to benefit 
continuously monitor record and 
analyse reported side effects 
determine whether to update the 
side effect warnings to help ensure 
patient safety
assess realworld effectiveness and 
opportunities to support patients and 
prescribers to achieve maximum 
benefit from the medicine
conduct studies to further 
understand the benefitrisk profile 
of the medicine in larger andor 
additional patient populations
conduct lifecycle management 
activities to realise the medicine’s  
full potential and work to identify 
additional diseases or aspects of 
disease that may be treated by the 
medicine or better administration 
methods submit data packages with 
requests for lifecycle management  
to regulatory authorities for review  
and approval
typically when patents and  
other exclusivities protecting the 
medicine expire generic versions 
of the medicine enter the market
note this is a high level overview of  
a medicine’s lifecycle and is illustrative 
only it is neither intended to nor does it 
represent the lifecycle of any particular 
medicine or of every medicine discovered 
andor developed by astrazeneca or the 
probability of success or approval of any 
astrazeneca medicine
research and development
we have two autonomous biotech units medimmune 
and innovative medicines and early development imed 
to drive science and innovation in research and earlystage 
development
a single latestage development organisation – global 
medicines development gmd – is responsible for all projects 
delivered by the two earlystage development units
we are investing in the best science and technology whether  
it originates internally or externally products are added to our 
pipeline at any stage of development through collaboration  
licensing and acquisition
manufacturing and supply
a reliable manufacturing and supply operation ensures that we  
are able to deliver our medicines to patients around the world
our investment in continuous improvement helps us supply our 
medicines as efficiently as possible
sales and marketing
we are a global company with commercial activities in more 
than 100 countries focused on ensuring the right medicines  
are available and improving access to them
we are investing in our growth platforms and commercial 
capabilities to return the business to growth and deliver 
lifechanging medicines to patients
our activities are focused on meeting the needs of patients 
physicians and payers and are undertaken ethically and in 
accordance with our values
launch phase 
510 years
postexclusivity
20 years
4 5 6 7
 sales and marketing from page 59 manufacturing and supply from page 56 
13 astrazeneca annual report and form 20f information 2014
strategic report strategic report  strategy
marketplace
continuing recovery 
the global economy continues to  
recover from the 20082009 financial crisis 
risks remain however and geopolitical 
developments could threaten more 
balanced sustainable growth
as shown in the table opposite global 
pharmaceutical sales grew by 83 in 2014 
established markets saw average revenue 
growth of 7 3 while emerging markets’ 
revenue growth was 58 higher at 1 16 
the us japan china germany and france 
are the world’s top five pharmaceutical 
markets in 2014 the us had 404 of 
global sales 2013 39 1 2012 402 
while demand for healthcare continues to 
increase – a favourable trend for longterm 
industry growth – challenges remain  
such challenges include expiring patents 
competition from and growing use of 
generic medicines obtaining regulatory 
approval securing reimbursement for new 
medicines improving rd productivity  
and attaining pricing and sales sufficient  
to generate revenue and sustain the cycle  
of innovation 
competition
our industry remains highly competitive  
it includes large researchbased 
pharmaceutical companies such as 
astrazeneca that discover develop  
and sell innovative patentprotected 
prescription medicines and vaccines 
smaller biotechnology and vaccine 
businesses and companies that produce 
generic medicines while many of our peers 
face similar challenges they tackle them  
in different ways some companies have 
pursued a strategy focused on branded 
prescription pharmaceuticals while others 
have diversified by acquiring or building 
branded generics businesses or consumer 
portfolios a number of companies are 
focused on improving rd productivity  
and operational efficiency while others  
have expanded geographically especially in 
emerging markets and japan throughout 
the industry business development 
including licensing and collaborations  
and competition for business development 
opportunities increased in 2014
the industry shift away from developing 
primary care medicines continued with  
an increased emphasis on oncology and 
other specialty care diseases with high 
unmet medical need in 2014 primary care 
medicines only accounted for approximately 
onequarter of new fdaapproved nmes
growth drivers
expanding patient populations 
the world’s population is expected to rise 
from some seven billion today to nine billion 
by 2050 also increasing is the number of 
people accessing healthcare and healthcare 
spending particularly by the elderly in the 
five years to 2018 the number of people 
over the age of 65 will rise by some 
83 million constituting almost 30 of  
the world’s population growth
as the diagram overleaf shows we  
expect developing markets to continue to 
spearhead pharmaceutical growth sales 
are expected to rise at doubledigit rates 
across much of asia latin america and 
africa sales in the us grew in 2014 for  
the first time in two years
despite global economic political and 
social challenges the pharmaceutical 
industry is expected to enjoy long
term growth due to favourable 
demographic trends and significant 
unmet medical need
overview
  global pharmaceutical sales grew  
by 83 in 2014
  the sector remains highly competitive
  patient populations are expanding  
and ageing
  noncommunicable diseases account 
for over twothirds of deaths globally
  improving rd productivity is a critical 
pharmaceutical challenge
  a highly regulated sector reflects the 
demand for safe effective and 
highquality medicines
  pricing and reimbursement continue  
to be challenging
  patents are expiring on some of the 
biggestselling drugs ever produced
  the sector faces challenges in building 
and maintaining trust
14 astrazeneca annual report and form 20f information 2014 technological breakthroughs in the design 
and testing of novel compounds present 
fresh opportunities for using small 
molecules as the basis for new medicines 
the use of large molecules or biologics  
has also become an important source of 
innovation biologics are among the most 
commercially successful new products by 
2020 biologics are expected to account for 
more than half of the world’s top 100 
pharmaceutical products in 2013 the figure 
was 45 having risen from 21 in 2006 
as such most pharmaceutical companies 
now pursue rd in both small molecules 
and biologics
the challenges 
rd productivity
improving rd productivity is a critical 
challenge for the pharmaceutical industry 
global rd investment reached an 
estimated 141 billion in 2014 a 31 
increase from 108 billion in 2006 while  
the growth rate of rd spend has slowed  
in recent years pharmaceutical companies 
continue to deliver new medicines in 2014 
the fda approved 41 nmes – the highest 
number in 18 years 2013 27
to ensure sustainable returns on rd 
investment the industry is working to 
increase its success rate in developing 
commercially viable new drugs while 
achieving a lower more flexible cost base 
regulators and payers however are 
demanding greater evidence of comparative 
effectiveness of medicines which increases 
development times and costs 
fortunately innovative technology is helping 
accelerate product approvals a greater 
emphasis on proof of concept is also 
helping improve productivity and reduce 
costs by showing the potential efficacy of 
drugs earlier in the development process
unmet medical need 
the prevalence of noncommunicable 
diseases ncds such as cancer and 
cardiovascular metabolic and respiratory 
diseases is increasing worldwide  
ncds are often associated with ageing 
populations and lifestyle choices including 
smoking diet and lack of exercise – and 
many require longterm management in 
2012 ncds accounted for 68 of deaths 
globally nearly threequarters of these 
deaths were in low and middleincome 
countries by 2030 deaths from 
cardiovascular diseases are likely to rise  
to 233 million annually annual cancer 
cases are forecast to increase from 
14 million in 2012 to 22 million worldwide 
over the next 20 years
advances in science and technology 
innovation is critical to addressing unmet 
medical need the delivery of new 
medicines will rely on a more advanced 
understanding of disease and the use of 
new technology and approaches such  
as personalised healthcare phc and 
predictive science 
the global economy 
continues to recover 
from the 20082009 
financial crisis risks 
remain however …” 903bn 83
365bn 1 18
216bn 33
114bn 18
208bn  1 16
world bn
us bn
europe bn
established row bn
emerging markets bn
data based on world market sales using astrazeneca market 
definitions as set out in the market definitions on page 239 
source ims health ims midas quantum q3 2014 including 
us data reported values and growth are based at cer 
value figures are rounded to the nearest billion and growth 
percentages are rounded to the nearest tenth 
2014
2013
2012
903
834
810
2014
2013
2012
365
326
326
2014
2013
2012
216
209
206
2014
2013
2012
114
112
110
2014
2013
2012
208
187
168
global pharmaceutical sales
83m
in the five years to 2018 the number of people over  
the age of 65 is forecast to rise by approximately 
83 million accounting for nearly 30 of the world’s 
population growth 
15 astrazeneca annual report and form 20f information 2014
strategic report strategic report  strategy
marketplace continued
regulatory requirements
a highly regulated industry reflects public 
demand for safe effective and highquality 
medicines delivering such medicines 
requires responsible testing manufacturing 
and marketing as well as maintaining 
important relationships worldwide with 
regulatory authorities such authorities 
include the fda in the us the ema in  
the eu the pmda in japan and the cfda  
in china 
there is a global trend towards greater 
transparency of and public access to the 
regulatory submissions that support the 
approvals of new medicines a recent 
example is the new ema policy on 
publication of clinical data for medicinal 
products for human use which provides  
for the publication of clinical reports that 
underpin the ema’s decision making
in 2014 several regulatory authorities 
introduced regulatory frameworks for the 
registration of biosimilar products in most 
countries these frameworks impose robust 
standards to ensure product safety efficacy 
and quality for more information about 
biosimilars please see patent expiries and 
genericisation opposite
increasingly regulation and policy are  
aimed at fostering innovation in the us for 
example the 21st century cures initiative  
a bipartisan effort driven by the energy and 
commerce committee of the us house of 
representatives is focused on accelerating 
the discovery development and delivery of 
promising new treatments for patients draft 
legislation is expected to be introduced 
in 2015 
in japan the sakigake strategy is 
fostering a more favourable environment 
for drug development and accelerating 
the availability of currently unapproved 
medicines for serious and lifethreatening 
diseases the eu is currently piloting  
a programme to implement ‘adaptive 
licensing’ approaches or ‘staggered 
approval’ to improve timely patient access 
to new medicines in contrast recent 
changes in china’s regulatory review 
process are lengthening new medicine 
approval periods to as long as five years 
challenging the ability of pharmaceutical 
companies to deliver lifechanging 
medicines and treat unmet medical need 
in china however proposed revisions to 
china’s drug administration law which  
are currently under review may address 
this issue
despite efforts to harmonise regulations 
and achieve global convergence regulations 
and their impact are increasing worldwide 
clinical trials that support product 
registration in a regulated jurisdiction must 
be relevant to the population and many 
countries require the inclusion of local 
patients in multinational studies this can 
increase development complexity and 
costs also regulatory authorities continue 
to implement new requirements and 
processes for patient safety data pre 
and postapproval and to demand risk 
management plans and tailored post
approval commitments
the growing complexity and globalisation of 
clinical studies combined with pressure on 
industry and healthcare budgets have led to 
an increase in publicprivate consortia such 
consortia which include industry academia 
marketplace continued
estimated pharmaceutical sales and market growth – 2018
1
 exmanufacturer prices at cer source ims health
2
 compound annual growth rate source ims health
north america
489bn
63
eu
251bn
24
south east   
east asia
212bn
97
japan
103bn
27
latin america
143bn
14
cis
36bn
86
africa
31bn
99
indian subcontinent
30bn
108
other europe  
noneu countries
20bn
35
middle east
23bn
74
oceania
15bn
06
  estimated pharmaceutical sales – 2018
1
 estimated pharmaceutical market growth – 2013 to 2018
2
 
141bn
global investment in pharmaceutical rd reached  
an estimated 141 billion in 2014 a 31 increase  
from 108 billion in 2006
16 astrazeneca annual report and form 20f information 2014 and government bodies aim to drive 
innovation streamline regulatory processes 
and define and clarify approval requirements 
for new technology and approaches
pricing pressure 
pricing and reimbursement remain 
challenging in many markets most 
pharmaceutical sales are generated in 
highly regulated markets where 
governments insurers and other private 
payers exert various controls on pricing  
and reimbursement such as limitations on 
pharmaceutical spending and readmission 
costs austerity programmes are further 
constraining healthcare providers while 
difficult economic conditions burden 
patients who pay outofpocket for 
medicines pharmaceutical companies 
must now expend significant resources 
to demonstrate the economic as well as 
therapeutic value of their medicines
in the us the affordable care act aca has 
had a direct impact on healthcare activities 
it continues to reshape the market through 
various provisions designed to reduce  
cost and improve healthcare and patient 
outcomes the aca’s financial requirements 
include increased and expanded medicaid 
mandatory rebates the branded 
prescription drug fee and efforts to close 
the coverage gap in the medicare part d 
prescription drug programme we along 
with other pharmaceutical companies are 
working with policymakers and regulators  
to help contain costs improve outcomes 
and promote an environment that fosters 
medical and scientific innovation
due to the us congressional failure to  
reach an agreement on raising the federal 
debt ceiling ‘sequestration’ took effect  
in march 2013 sequestration which will 
remain in place until 2024 has resulted  
in broad federal spending cuts including  
a 2 reduction in medicare payments to 
healthcare providers this reduction affects 
medicare reimbursement rates for 
physicianadministered products which  
in turn places additional pricing pressure  
on our industry 
in europe governments continue to 
implement drug price control measures 
including mandatory discounts clawbacks 
and referencing rules these measures are 
decreasing drug prices particularly in the 
distressed economies of spain romania 
and greece in france price negotiations 
are particularly challenging due to budget 
pressures in germany europe’s largest 
pharmaceutical market manufacturers  
must now prove the added benefit of their 
drug over existing alternatives if no added 
benefit is shown the drug is relegated to  
the german reference pricing system  
which provides a single reimbursement  
level or reference for each drug group
in china pricing practices remain a priority 
for regulators the triennial maximum retail 
drug price review continued in 2013 and  
in 2014 authorities proposed plans to 
deregulate existing pricing controls and 
increasingly focus on setting and controlling 
reimbursement prices of drugs on the 
regional and national drug list in india  
the government imposed price controls  
on approximately 100 cardiovascular and 
diabetes drugs including crestor  in  
japan mandated biennial cuts are likely  
to continue in latin america pricing is 
increasingly controlled by governments  
as for example in colombia 
 for more information about price controls 
and reductions and us healthcare reform please 
see risk from page 203 
 for more information about price regulation 
in our major markets please see geographical 
review from page 220
patent expiries and genericisation 
patent protection for pharmaceutical 
products is finite patents are expiring  
on some of the biggestselling drugs ever 
produced and payers physicians and 
patients have greater access to generic 
alternatives both substitutable and 
analogue in many important drug classes 
these generic alternatives are primarily 
lower priced because generic manufacturers 
are largely spared the costs of rd and 
market development as a result demand 
for generics is high for prescriptions 
dispensed in the us in 2014 generics 
constituted 833 of the market by volume 
2013 822 
generic competition can also result 
from patent disputes or challenges before 
expiry increasingly generics companies 
are launching products ‘at risk’ for example 
before resolution of the relevant patent 
litigation this trend which is likely to 
continue creates significant market 
presence for the generic version while the 
litigation remains unresolved given the 
unpredictable nature of patent litigation 
some companies have settled such 
challenges on terms acceptable to the 
innovator and generic manufacturer 
while competition authorities generally 
accept such agreements as a legitimate 
way to settle these disputes they have 
questioned some settlements as being 
potentially problematic 
biologics typically sustain longer periods 
of exclusivity than traditional small molecule 
pharmaceuticals with less generic 
competition with limited experience to date 
the substitution of biosimilars for the original 
branded product has not followed the same 
pattern as generic substitution in small 
molecule products and as a result erosion 
of branded market share has not been as 
rapid this is due to biologics’ complex 
manufacturing processes and the inherent 
difficulties in producing a biosimilar which 
could require additional clinical trials 
however with regulatory authorities in 
europe and the us continuing to implement 
abbreviated approval pathways for biosimilar 
versions innovative biologics are likely to 
face increased competition
building trust
the pharmaceutical industry faces 
challenges in building and maintaining  
trust particularly with governments and 
regulators this reflects the past decade’s 
legal disputes between pharmaceutical 
companies and governmental and 
regulatory authorities to address this 
challenge companies are embedding a 
culture of ethics and integrity adopting 
higher governance standards and improving 
relationships with employees shareholders 
and other stakeholders
numerous companies including those  
in the pharmaceutical industry have been 
investigated by the china public security 
bureau following allegations of bribery and 
criminal and financial penalties have been 
imposed investigations by the doj and 
sec under the foreign corrupt practices 
act are also continuing
60
world pharmaceutical market sales  
have increased by over 60 over the  
last ten years 
17 astrazeneca annual report and form 20f information 2014
strategic report what do we need to do how are we implementing this for more information 
achieve scientific 
leadership
focus on innovative science  
in three main therapy areas
focusing on cardiovascular and metabolic diseases oncology and respiratory inflammation and autoimmunity 
with an opportunitydriven approach to infection neuroscience and gastrointestinal disorders
working across biologics small molecules immunotherapies protein engineering and devices
therapy area review  
from page 32
prioritise and accelerate  
our pipeline
accelerating and investing in key rd programmes thirteen new molecular entities nmes in phase iiipivotal 
phase ii or under regulatory review compared with our march 2013 target of eight 
potential by the end of 2016 for 12 to 16 phase ii starts 14 to 16 nme and major line extension regulatory 
submissions and 8 to 10 nme and major line extension regulatory approvals
strengthening our earlystage pipeline through novel science and technology
transform our innovation  
and culture model
two autonomous biotech units medimmune and imed to drive science and innovation and a latestage 
development unit – gmd
research and development  
from page 52
focusing on novel science such as immunemediated therapy combinations and personalised healthcare phc
increasing our proximity to bioscience clusters by colocating around three strategic centres in cambridge uk 
gaithersburg maryland us and mölndal sweden to leverage our capabilities and collaborate with leading 
scientists and research organisations
return to growth
focus on growth platforms brilintabrilique – working to deliver brilintabrilique’s potential to reduce cardiovascular deaths through ongoing 
clinical studies and plans for market leadership 
cardiovascular and metabolic 
diseases from page 35
diabetes – working to maximise the potential of our broad and innovative noninsulin antidiabetic portfolio to 
transform patient care
cardiovascular and metabolic 
diseases from page 35
emerging markets – focused on delivering innovative medicines by accelerating our investment in emerging  
markets capabilities with a focus on china and other leading markets such as russia and brazil expanding  
our commercial reach through multichannel marketing and sales force excellence building strong local medical 
and scientific affairs teams and transforming our capabilities to support new products and improve access  
and affordability 
sales and marketing from page 59
respiratory – working to maximise the value of our pipeline devices and medicines to fulfil unmet medical need 
and improve patient outcomes in asthma chronic obstructive pulmonary disease copd and idiopathic pulmonary 
fibrosis ipf
respiratory inflammation and 
autoimmunity from page 44
japan – strengthening our oncology franchise and working to maximise the success of our diabetes medicines 
and established brands symbicort nexium and crestor
sales and marketing from page 59
oncology – became our sixth growth platform in january 2015 with the aim of delivering six new cancer medicines 
to patients by 2020
oncology from page 40
accelerate through business 
development
working to reinforce our therapy areas and strengthen our portfolio and pipeline through targeted business 
development including collaborations licensing acquisitions and divestments
relationships from page 65
transform through specialty  
care devices and biologics
transforming our business to become more sustainable durable and profitable by focusing on specialty care 
medicines devices and biologics biologics now account for nearly half our pipeline potentially enhancing asset 
longevity a greater focus on innovative and differentiated delivery devices affords patient choice while ensuring 
product durability our new specialty care portfolio is expected to balance our strength in primary care medicines
therapy area overview from  
page 32
 be a great place  
to work
evolve our culture working to improve our employees’ identification with our purpose and values and to promote understanding of  
and belief in our strategy
investing in and implementing tailored leadership development programmes 
employees from page 62
simplify our business developing simpler more efficient processes and flattening our organisational structure to foster accountability  
and improve decision making and communication 
attract and retain the best talent accelerating our efforts to attract diverse top talent with new capabilities
strategic report  strategy
strategic priorities
we are focused on returning to growth 
through a scienceled innovation strategy 
this strategy is based on investing in three 
main therapy areas building a strong and 
balanced portfolio of primary care and 
specialty care medicines accelerating key 
rd programmes engaging in targeted 
business development and leveraging  
our strong global commercial presence 
particularly in emerging markets 
our strategic priorities are to
  1 achieve scientific leadership
  2 return to growth
  3 be a great place to work
achieve our group financial targets
drive onmarket 
value
invest in rd and onmarket growth platforms to 
return to growth aim to deliver industryleading 
productivity by restructuring to create scope for 
investment and a flexible cost base 
maintain a 
progressive 
dividend
our policy is to maintain or grow dividend  
per share
maintain a strong 
balance sheet
target a strong investmentgrade credit rating 
operational cash balance and periodic share 
repurchases
 financial review from page 70
we also need to  
do business responsibly  
committed to operating responsibly working with integrity and 
delivering sustainable growth with a special focus on
  access to healthcare
  our environmental impact 
 responsible business from page 227 increasing access  
to healthcare in sales and marketing on page 61  
18 astrazeneca annual report and form 20f information 2014 what do we need to do how are we implementing this for more information 
achieve scientific 
leadership
focus on innovative science  
in three main therapy areas
focusing on cardiovascular and metabolic diseases oncology and respiratory inflammation and autoimmunity 
with an opportunitydriven approach to infection neuroscience and gastrointestinal disorders
working across biologics small molecules immunotherapies protein engineering and devices
therapy area review  
from page 32
prioritise and accelerate  
our pipeline
accelerating and investing in key rd programmes thirteen new molecular entities nmes in phase iiipivotal 
phase ii or under regulatory review compared with our march 2013 target of eight 
potential by the end of 2016 for 12 to 16 phase ii starts 14 to 16 nme and major line extension regulatory 
submissions and 8 to 10 nme and major line extension regulatory approvals
strengthening our earlystage pipeline through novel science and technology
transform our innovation  
and culture model
two autonomous biotech units medimmune and imed to drive science and innovation and a latestage 
development unit – gmd
research and development  
from page 52
focusing on novel science such as immunemediated therapy combinations and personalised healthcare phc
increasing our proximity to bioscience clusters by colocating around three strategic centres in cambridge uk 
gaithersburg maryland us and mölndal sweden to leverage our capabilities and collaborate with leading 
scientists and research organisations
return to growth
focus on growth platforms brilintabrilique – working to deliver brilintabrilique’s potential to reduce cardiovascular deaths through ongoing 
clinical studies and plans for market leadership 
cardiovascular and metabolic 
diseases from page 35
diabetes – working to maximise the potential of our broad and innovative noninsulin antidiabetic portfolio to 
transform patient care
cardiovascular and metabolic 
diseases from page 35
emerging markets – focused on delivering innovative medicines by accelerating our investment in emerging  
markets capabilities with a focus on china and other leading markets such as russia and brazil expanding  
our commercial reach through multichannel marketing and sales force excellence building strong local medical 
and scientific affairs teams and transforming our capabilities to support new products and improve access  
and affordability 
sales and marketing from page 59
respiratory – working to maximise the value of our pipeline devices and medicines to fulfil unmet medical need 
and improve patient outcomes in asthma chronic obstructive pulmonary disease copd and idiopathic pulmonary 
fibrosis ipf
respiratory inflammation and 
autoimmunity from page 44
japan – strengthening our oncology franchise and working to maximise the success of our diabetes medicines 
and established brands symbicort nexium and crestor
sales and marketing from page 59
oncology – became our sixth growth platform in january 2015 with the aim of delivering six new cancer medicines 
to patients by 2020
oncology from page 40
accelerate through business 
development
working to reinforce our therapy areas and strengthen our portfolio and pipeline through targeted business 
development including collaborations licensing acquisitions and divestments
relationships from page 65
transform through specialty  
care devices and biologics
transforming our business to become more sustainable durable and profitable by focusing on specialty care 
medicines devices and biologics biologics now account for nearly half our pipeline potentially enhancing asset 
longevity a greater focus on innovative and differentiated delivery devices affords patient choice while ensuring 
product durability our new specialty care portfolio is expected to balance our strength in primary care medicines
therapy area overview from  
page 32
 be a great place  
to work
evolve our culture working to improve our employees’ identification with our purpose and values and to promote understanding of  
and belief in our strategy
investing in and implementing tailored leadership development programmes 
employees from page 62
simplify our business developing simpler more efficient processes and flattening our organisational structure to foster accountability  
and improve decision making and communication 
attract and retain the best talent accelerating our efforts to attract diverse top talent with new capabilities
19 astrazeneca annual report and form 20f information 2014
strategic report strategic report  strategy
key performance indicators
how we performed against the indicators by which we measure our success
revenue
26095m
cer growth actual growth
2014 3 2014 1
2013 6 2013 8
2012 15 2012 17 
revenue was in line with our upgraded 
guidance and reflected the delayed launch  
of generic nexium in the us and the 
accelerating performance of our growth 
platforms taken together these more than 
offset the impact of loss of exclusivity on an 
actual basis revenue was negatively impacted 
by exchange rate movements
2014
2013
2012
26095m
25711m
27973m
core eps
428
cer growth actual growth
2014 8 2014 15
2013 23 2013 26
2012 8 2012 1 1 
decline in eps reflects investment in the 
growth platforms and accelerated pipeline  
2014
2013
2012
428
505
683
net cash flow from operating activities
7058m
actual growth
2014 5
2013 7
2012 11 
cash generated from operating activities  
in 2014 reflected the fact that improvements  
in working capital largely offset a lower  
reported operating profit down 31  
at cer actual 42 to 2137 million and 
higher tax payments
2014
2013
2012
7058m
7400m
6948m
dividend per share
280
dividend is consistent with the progressive 
dividend policy pursuant to which the board 
intends to maintain or grow the dividend  
each year
2014
2013
2012
280
280
280
 first and second interim dividend for the year
 financial review from page 70
achieve group financial targets
20 astrazeneca annual report and form 20f information 2014 phase iii investment decisions
9
there were 13 nmes in phase iiipivotal phase 
ii or under regulatory review at the end of 2014 
investment decisions helped us achieve our 
2016 target of nine to ten nmes three years 
ahead of schedule
2014
2013
2012
9
3
3
nme phase ii startsprogressions
13
phase ii starts and progressions contribute to 
meeting our target of sustainable delivery of 
two nmes annually by 2020
2014
2013
2012
13
13
  8
nme or lcm project regulatory 
submissions in major markets
6
submissions contribute to meeting our target 
of at least one nme launch annually in 2015 
and 2016 and sustainable delivery of two 
nmes annually by 2020
2014
2013
2012
6
3
7
clinicalstage strategic transactions
3
licensing andor acquisition opportunities 
helped us achieve our 2016 target three years 
ahead of schedule and contribute to meeting 
our target of sustainable delivery of two nmes 
annually by 2020 
2014
2013
2012
  3
  7
12
  4 for earlystage phase iii opportunities and 3 for 
latestage phase ii opportunities
  7 for earlystage phase iii opportunities and 5 for 
latestage phase ii opportunities
 therapy area review from page 32 
achieve scientific leadership
21 astrazeneca annual report and form 20f information 2014
strategic report strategic report  strategy
key performance indicators continued
brilintabrilique
476m
sales
cer growth actual growth
2014 70 2014 68
2013 216 2013 218
2012 348 2012 324 
strong global growth with continuing 
momentum in the us with sales up 100 
2014
2013
2012
476m
283m
89m
respiratory
5063m
sales
cer growth actual growth
2014 10 2014 8
2013 7 2013 6
2012 2 2012 1 
strong overall sales with emerging markets 
growth of 27 actual 22 and decelerating 
us growth of 15 actual 15 symbicort 
sales rose by 10 actual 9 and pulmicort 
sales rose by 11 actual 9
2014
2013
2012
5063m
4677m
4415m
diabetes
1870m
sales
cer growth actual growth
2014 139 2014 138
2013 75 2013 75
2012 nm 2012 nm
revenue reflects acquisition of bms’s share of 
diabetes alliance in february 2014 as well as 
successful farxigaforxiga launch and good 
uptake of new bydureon pen in the us
2014
2013
2012
1870m
787m
451m
japan
2227m
sales
cer growth actual growth
2014 3 2014 10
2013 4 2013 14
2012 5 2012 5 
decrease reflected mandated biennial  
price cuts increased use of generics and  
a nexium recall in december 2014 due  
to a packaging defect 
2014
2013
2012
2227m
2485m
2904m
emerging markets
5827m
sales
cer growth actual growth
2014 12 2014 8
2013 8 2013 6
2012 4 2012  1 
strong growth continues including 22 
actual 22 in china our ambition is to 
sustain high singledigit annual growth
2014
2013
2012
5827m
5389m
5095m
 geographical review from page 220
return to growth
22 astrazeneca annual report and form 20f information 2014 organisational structure – percentage  
of employees within six management 
steps of ceo
75
this is a key indicator of our progress in driving 
accountability and improving decision making 
and communication
2014
2013
2012
75
70
40
employee belief in our strategy
86
this is a key indicator of employee 
engagement belief level is in line with  
the pharmaceutical sector norm
2014
2013
2012
86
84
68
employees who would recommend 
astrazeneca as a great place to work
82
2014
2013
2012
82
na
77
this is a key indicator of whether employees 
believe astrazeneca is a great place to work
dow jones sustainability index ranking
top 10
of companies
met the target of maintaining position in the 
dow jones sustainability world and europe 
indexes comprising the top 10 of the largest 
2500 companies with a score of 79
2014
2013
2012
10
t op 3
t op 7
confirmed breaches of external sales and 
marketing codes or regulations globally
6
confirmed breaches
continue to report and learn from confirmed 
breaches of external codes arising from 
external scrutiny and voluntary disclosure 
by astrazeneca
2014
2013
2012
6
11
10
operational carbon footprint
738
kt co 2e
our 2014 operational carbon footprint met our 
target emission of 758 kt co 2e and represents 
an 18 reduction from our 2010 baseline our 
overall target is a 20 reduction from a 2010 
baseline of 902 kt co 2e by the end of 2015
2014
2013
2012
738 kt co2e
717 kt co2e
739 kt co2e
do business responsibly
  this metric is measured by our focus survey which 
occurs every two years
 source global focus allemployee survey
  operational carbon footprint is emissions from all sources 
excluding those from patient use of our inhalers
 source global focus allemployee survey
  source january 2014 pulse survey across a sample  
of the organisation
 responsible business from page 227
 employees from page 62
be a great place to work
23 astrazeneca annual report and form 20f information 2014
strategic report strategic report  strategy
risk overview
what may challenge the delivery of our strategic priorities
we face a diverse range of risks and uncertainties that may adversely affect any one or more parts of our business and the delivery  
of our strategic priorities our approach to risk management is designed to encourage clear decision making on which risks we take  
as a business and how we manage risk informed by an understanding of the potential commercial financial compliance legal and 
reputational implications we outline below the principal risks that could have a material adverse effect on the business or results of 
operations we also outline how these risks link to our strategic priorities and some of the risk management actions taken in response 
 risk from page 203
context specific risks we face possible impacts risk management actions link to strategic priority
risk product pipeline
the development of any pharmaceutical 
product candidate is a complex risky  
and lengthy process involving significant 
financial rd and other resources 
each project may fail or be delayed at  
any stage of the process due to a number 
of factors
  failure to meet development targets
  difficulties obtaining and maintaining regulatory approvals for new products 
  failure to obtain and enforce effective ip protection 
  delay to new product launches 
  acquisitions and strategic alliances including licensing and collaborations may be unsuccessful
  reduced 
longterm growth 
revenue and profit
  diminished 
reputation rd 
capability
  focus on innovative science in three main therapy areas with strong capabilities
  prioritise and accelerate our pipeline
  strengthen pipeline through acquisitions licensing and collaborations
  transform our innovation model and culture 
  focus on simplification 
  drive continued productivity improvements
  active management of ip rights
achieve scientific 
leadership
return to growth
be a great place  
to work
achieve group  
financial targets
risk commercialisation and business execution
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 particularly important 
to replace lost sales following patent expiry
we may ultimately be unable to achieve 
commercial success for any number of 
reasons
  challenges to achieving commercial success  
of new products
  illegal trade in our products 
  developing our business in emerging markets
  expiry or loss of or limitations to ip rights
  pressures from generic competition
  effects of patent litigation in respect of ip rights
  price controls and reductions
  economic regulatory and political pressures
  abbreviated approval processes for biosimilars
  increasing implementation and enforcement of 
more stringent antibribery and anticorruption 
legislation
  any expected gains from productivity initiatives 
are uncertain
  failure to attract and retain key personnel and 
failure to successfully engage with our 
employees 
  failure of information technology and 
cybercrime
  failure of outsourcing
  reduction in 
market share and 
longterm growth
  diminished 
reputation and 
employee 
engagement
  loss of revenue 
profit and cash 
flows
  focus on growth platforms
  accelerate through business development and strategic collaborations and alliances
  transform through specialty care devices and biologics
  focus on simplification 
  drive continued productivity improvements
  evolve our culture
  active management of ip rights
  reimbursement and pricing – demonstrating value of medicineshealth economics
  colocating around strategic rd centres 
return to growth
be a great place  
to work
achieve group  
financial targets
risk supply chain and delivery
we may experience difficulties and delays 
in manufacturing our products particularly 
biologics and there may be a failure in 
supply from third parties
  manufacturing biologics
  difficulties and delays in the manufacturing distribution and sale of our products
  reliance on third party goods and services
  delays in planned 
activities
  loss of sales and 
revenue
  quality management systems
  contingency plans including dual sourcing multiple suppliers and stock levels
  supplier audit programme
  business continuity and resilience initiatives disaster and data recovery and emergency 
response plans
return to growth
achieve group  
financial targets
risk legal regulatory and compliance
any failure to comply with applicable laws 
rules and regulations may result in civil and
or criminal legal proceedings andor 
regulatory sanctions
  adverse outcome of litigation andor governmental investigations
  substantial product liability claims
  failure to adhere to applicable laws rules and regulations 
  failure to adhere to applicable laws rules and regulations relating to anticompetitive behaviour
  environmental and occupational health and safety liabilities
  misuse of social media platforms and new technology
  diminished 
reputation
  reduction in profit
  strong ethical and compliance culture and infrastructure incorporating all elements of 
compliance framework
  code of conduct and global policies and standards provide controls for major risks
  training for all directors and employees 
  management oversight compliance monitoring and audit programmes to assure compliance
  independent reporting channels for employees to voice concerns confidentially
  robust investigation of alleged breaches followed by appropriate corrective actions
  due diligence reviews on business development opportunities and integration plans
be a great place  
to work
achieve group 
financial targets
risk economic and financial
operating in over 100 countries we are 
subject to political socioeconomic and 
financial factors both globally and in 
individual countries
  failure to achieve strategic priorities or to meet targets or expectations
  adverse impact of a sustained economic downturn
  political and socioeconomic conditions 
  fluctuations in exchange rates 
  limited third party insurance coverage
  taxation
  pensions
  loss of revenue 
profit cash flows 
and ability to 
access funding
  strategicfinancial management actions such as monitoring and analysis of market conditions 
competitors and their strategies
  financial risk management 
achieve group  
financial targets
24 astrazeneca annual report and form 20f information 2014 context specific risks we face possible impacts risk management actions link to strategic priority
risk product pipeline
the development of any pharmaceutical 
product candidate is a complex risky  
and lengthy process involving significant 
financial rd and other resources 
each project may fail or be delayed at  
any stage of the process due to a number 
of factors
  failure to meet development targets
  difficulties obtaining and maintaining regulatory approvals for new products 
  failure to obtain and enforce effective ip protection 
  delay to new product launches 
  acquisitions and strategic alliances including licensing and collaborations may be unsuccessful
  reduced 
longterm growth 
revenue and profit
  diminished 
reputation rd 
capability
  focus on innovative science in three main therapy areas with strong capabilities
  prioritise and accelerate our pipeline
  strengthen pipeline through acquisitions licensing and collaborations
  transform our innovation model and culture 
  focus on simplification 
  drive continued productivity improvements
  active management of ip rights
achieve scientific 
leadership
return to growth
be a great place  
to work
achieve group  
financial targets
risk commercialisation and business execution
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 particularly important 
to replace lost sales following patent expiry
we may ultimately be unable to achieve 
commercial success for any number of 
reasons
  challenges to achieving commercial success  
of new products
  illegal trade in our products 
  developing our business in emerging markets
  expiry or loss of or limitations to ip rights
  pressures from generic competition
  effects of patent litigation in respect of ip rights
  price controls and reductions
  economic regulatory and political pressures
  abbreviated approval processes for biosimilars
  increasing implementation and enforcement of 
more stringent antibribery and anticorruption 
legislation
  any expected gains from productivity initiatives 
are uncertain
  failure to attract and retain key personnel and 
failure to successfully engage with our 
employees 
  failure of information technology and 
cybercrime
  failure of outsourcing
  reduction in 
market share and 
longterm growth
  diminished 
reputation and 
employee 
engagement
  loss of revenue 
profit and cash 
flows
  focus on growth platforms
  accelerate through business development and strategic collaborations and alliances
  transform through specialty care devices and biologics
  focus on simplification 
  drive continued productivity improvements
  evolve our culture
  active management of ip rights
  reimbursement and pricing – demonstrating value of medicineshealth economics
  colocating around strategic rd centres 
return to growth
be a great place  
to work
achieve group  
financial targets
risk supply chain and delivery
we may experience difficulties and delays 
in manufacturing our products particularly 
biologics and there may be a failure in 
supply from third parties
  manufacturing biologics
  difficulties and delays in the manufacturing distribution and sale of our products
  reliance on third party goods and services
  delays in planned 
activities
  loss of sales and 
revenue
  quality management systems
  contingency plans including dual sourcing multiple suppliers and stock levels
  supplier audit programme
  business continuity and resilience initiatives disaster and data recovery and emergency 
response plans
return to growth
achieve group  
financial targets
risk legal regulatory and compliance
any failure to comply with applicable laws 
rules and regulations may result in civil and
or criminal legal proceedings andor 
regulatory sanctions
  adverse outcome of litigation andor governmental investigations
  substantial product liability claims
  failure to adhere to applicable laws rules and regulations 
  failure to adhere to applicable laws rules and regulations relating to anticompetitive behaviour
  environmental and occupational health and safety liabilities
  misuse of social media platforms and new technology
  diminished 
reputation
  reduction in profit
  strong ethical and compliance culture and infrastructure incorporating all elements of 
compliance framework
  code of conduct and global policies and standards provide controls for major risks
  training for all directors and employees 
  management oversight compliance monitoring and audit programmes to assure compliance
  independent reporting channels for employees to voice concerns confidentially
  robust investigation of alleged breaches followed by appropriate corrective actions
  due diligence reviews on business development opportunities and integration plans
be a great place  
to work
achieve group 
financial targets
risk economic and financial
operating in over 100 countries we are 
subject to political socioeconomic and 
financial factors both globally and in 
individual countries
  failure to achieve strategic priorities or to meet targets or expectations
  adverse impact of a sustained economic downturn
  political and socioeconomic conditions 
  fluctuations in exchange rates 
  limited third party insurance coverage
  taxation
  pensions
  loss of revenue 
profit cash flows 
and ability to 
access funding
  strategicfinancial management actions such as monitoring and analysis of market conditions 
competitors and their strategies
  financial risk management 
achieve group  
financial targets
25 astrazeneca annual report and form 20f information 2014
strategic report  
strategic report  strategy
governance and remuneration
we seek to create sustainable growth in shareholder value by developing 
and executing a remuneration strategy that supports the successful 
implementation of our business strategy
the progress and success of our business strategy will be measured 
against three key areas achieve scientific leadership return to growth and 
achieve group financial targets during 2014 the remuneration committee 
reviewed the group’s short and longterm performance incentive plans  
for the executive directors and senior management to ensure that they 
supported the delivery of these goals
the key components of our remuneration strategy for executive directors 
are set out here 
governance
remuneration 
the board
chairman leif johansson  
senior independent nonexecutive director john varley
directors are collectively responsible for the success of 
astrazeneca in addition the nonexecutive directors are 
responsible for exercising independent and objective judgement 
and for scrutinising and challenging management
the board is responsible for setting our strategy and policies 
oversight of risk and corporate governance and monitoring 
progress towards meeting our annual plans it is accountable to  
our shareholders for the proper conduct of the business and our 
longterm success and represents the interests of all stakeholders
the board has delegated some of its powers to four principal 
committees and the ceo
members of the board and their biographies are shown on the 
pages overleaf
nomination and 
governance committee
chairman leif johansson
talented people are critical to  
the delivery of the group’s 
strategy the nomination and 
governance committee’s role  
is to recommend new board 
appointments to the board and 
to consider more broadly 
succession planning to senior 
executive management and 
board positions the nomination 
and governance committee 
also advises the board on 
significant developments in 
corporate governance
audit committee
chairman rudy markham
to deliver the group’s strategy 
we must have sound financial 
and nonfinancial controls the 
audit committee is responsible 
for reviewing our financial 
reporting internal controls 
compliance with laws and our 
relationship with our external 
auditor as well as risk 
management
good governance is crucial to ensuring we are well managed and can deliver our strategic priorities
 corporate governance report from page 86 
 corporate governance 
report from page 86
 audit committee report 
from page 96 
 directors’ remuneration report from page 100
how our governance supports the delivery of our strategy
base pay
to be sufficient but no  
more than necessary to 
attract retain and develop 
highcalibre talent to achieve 
our business strategy
elements of remuneration
variable remuneration
to align the interests of our 
executive directors with those 
of our shareholders over the 
short medium and long term
short term incentive or annual bonus performance measures are 
drawn from a group scorecard which is closely aligned to our 
strategic priorities the measures are considered by the 
remuneration committee and updated annually
long term incentive lti plans comprise the psp and the azip  currently lti awards are granted with a split between the two plans in the 
ratio 75 psp and 25 azip
astrazeneca investment plan azip 
performance measures are designed to align 
senior management’s interests to the 
group’s longerterm financial performance 
over a fouryear performance period with a 
fouryear holding period
astrazeneca performance share plan psp performance measures are designed to 
align to financial and strategic objectives over a threeyear performance period for awards 
granted from 2015 a twoyear holding period for executive directors applies
performance measures
achieve group 
financial targets 
return to growth achieve scientific 
leadership
total shareholder 
return
cash flow dividend per 
share 
dividend cover
  for more information on 
performance measures please 
see strategic priorities from 
page 18 and key performance 
indicators from page 20
26 astrazeneca annual report and form 20f information 2014  
remuneration committee
chairman john varley
we seek to attract retain and 
develop the highestcalibre 
talent while paying no more than 
is necessary the group’s 
short and longterm incentive 
plans are closely linked to our 
strategic and financial goals  
and the delivery of sustainable 
shareholder value the 
remuneration committee  
is responsible for the group’s 
remuneration policy which 
supports the delivery of  
our strategy
science committee
chairman nancy rothwell
achieving scientific leadership  
is key to our strategic success 
the science committee 
provides assurance to the  
board regarding the group’s 
rd activities by reviewing  
and assessing our approaches 
in our chosen therapy areas  
the scientific technology and 
rd capabilities we deploy  
the quality and development  
of our scientists and our 
decision making
ceo pascal soriot
the senior executive team 
set comprises  
 ceo
 cfo
  nine executive vice
presidents from across the 
organisation representing 
hr gpps operations  is 
commercial regions and 
rd science units 
 general counsel
 chief compliance officer
the set is the body through 
which the ceo exercises the 
authority delegated to him by  
the board it considers major 
business issues and makes 
recommendations to the ceo 
and typically reviews matters that 
are to be submitted to the board 
for its consideration the ceo is 
responsible for establishing and 
chairing the set
gender split of directors
key roles 
chairman 
leadership operation and 
governance of the board ensuring 
board effectiveness
ceo 
responsible to the board for the 
management development and 
performance of the business
senior independent  
nonexecutive director  
acts as a sounding board for the 
chairman and an intermediary for 
other directors and shareholders 
when necessary
 directors’ remuneration 
report from page 100
 corporate governance 
report from page 86
 biographies of set 
members on pages 30 to 31
male 9 female 4 
variable remuneration
to align the interests of our 
executive directors with those 
of our shareholders over the 
short medium and long term
short term incentive or annual bonus performance measures are 
drawn from a group scorecard which is closely aligned to our 
strategic priorities the measures are considered by the 
remuneration committee and updated annually
long term incentive lti plans comprise the psp and the azip  currently lti awards are granted with a split between the two plans in the 
ratio 75 psp and 25 azip
astrazeneca investment plan azip 
performance measures are designed to align 
senior management’s interests to the 
group’s longerterm financial performance 
over a fouryear performance period with a 
fouryear holding period
astrazeneca performance share plan psp performance measures are designed to 
align to financial and strategic objectives over a threeyear performance period for awards 
granted from 2015 a twoyear holding period for executive directors applies
performance measures
achieve group 
financial targets 
return to growth achieve scientific 
leadership
total shareholder 
return
cash flow dividend per 
share 
dividend cover
  male 9 female 4
27 astrazeneca annual report and form 20f information 2014
strategic report strategic report  strategy
board of directors
as at 31 december 2014
1 leif johansson 63 
nonexecutive chairman of the board  
april 2012
committee membership chairman of the 
nomination and governance committee and 
member of the remuneration committee 
skills and experience from 1997 to 2011 leif was 
chief executive officer of ab volvo prior to that he 
served at ab electrolux latterly as chief executive 
officer from 1994 to 1997  he was a nonexecutive 
director of bms from 1998 to september 2011 
serving on the board’s audit committee and 
compensation and management development 
committee he holds an msc in engineering from 
chalmers university of technology gothenburg
other appointments leif is chairman of global 
telecommunications company lm ericsson  
he holds board positions at svenska cellulosa 
aktiebolaget sca and ecolean ab and has been  
a member of the royal swedish academy of 
engineering sciences since 1994 serving as 
chairman since 2012 leif is also a member  
of the european round table of industrialists  
and chairman of the international advisory  
board of the nobel foundation 
2 pascal soriot 55 
executive director and ceo october 2012
skills and experience pascal brings significant 
experience in established and emerging markets 
strength of strategic thinking a successful track 
record of managing change and executing strategy 
and the ability to lead a diverse organisation he 
served as chief operating officer of roche’s 
pharmaceuticals division from 2010 to september 
2012 and prior to that chief executive officer of 
genentech a biologics business where he led its 
successful merger with roche pascal joined the 
pharmaceutical industry in 1986 and has worked  
in senior management roles in numerous major 
companies around the world he is a doctor of 
veterinary medicine école nationale vétérinaire 
d’alfort maisonsalfort and holds an mba from 
hec paris
3 marc dunoyer 62  
executive director and cfo november 2013
skills and experience marc’s career in 
pharmaceuticals which has included periods  
with roussel uclaf hoechst marion roussel and 
glaxosmithkline gsk has given him extensive 
industry experience including finance and 
accounting corporate strategy and planning 
research and development sales and marketing 
business reorganisation and business development 
marc qualified as an accountant and joined 
astrazeneca in 2013 serving as executive 
vicepresident gpps from june to october 2013 
prior to that he served as global head of rare 
diseases at gsk and concurrently chairman gsk 
japan he holds an mba from hec paris and a 
bachelor of law degree from paris university
4 john varley 58 
senior independent nonexecutive director 
july 2006
committee membership chairman of the 
remuneration committee and member of the 
nomination and governance committee 
skills and experience john brings additional 
international executive business leadership 
experience to the board he was formerly group 
chief executive of the barclays group having held 
various senior positions with the bank during his 
career including that of group finance director 
other appointments john is a nonexecutive 
director of blackrock inc and rio tinto and 
chairman of business action on homelessness 
and of marie curie cancer care
5 geneviève berger 59 
nonexecutive director april 2012
committee membership member of the science 
committee
skills and experience geneviève was chief 
science officer at unilever plc and a member of 
the unilever leadership executive from 2008 to 
april 2014 she holds three doctorates – in physics 
human biology and medicine – and was appointed 
professor of medicine at université pierre et marie 
curie paris in 2006 her previous positions include 
professor and hospital practitioner at l’hôpital de la 
pitiésalpêtrière paris director of the biotech and 
agrifood department then head of the technology 
directorate at the french ministry of research and 
technology director general centre national de la 
recherche scientifique and chairman of the health 
advisory board of the eu commission 
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 date of appointment
28 astrazeneca annual report and form 20f information 2014 6 bruce burlington 66 
nonexecutive director august 2010
committee membership member of the audit 
committee and the science committee 
skills and experience bruce is a pharmaceutical 
product development and regulatory affairs 
consultant and brings extensive experience in those 
areas he spent 17 years with the fda serving as 
director of its center for devices and radiological 
health as well as holding various senior roles in the 
center for drug evaluation and research after 
leaving the fda he held various senior executive 
positions at wyeth now part of pfizer
other appointments bruce is a nonexecutive 
director of the international partnership for 
microbicides and a member of the scientific 
advisory boards of the international medica 
foundation and h lundbeck as
7 ann cairns 57 
nonexecutive director april 2014
committee membership member of the audit 
committee
skills and experience ann has more than 20  
years’ indepth financial and international business 
experience and currently serves as president 
international markets for mastercard before joining 
mastercard in 2011 ann oversaw the european 
liquidation of lehman brothers holdings 
international and was the chief executive 
transaction banking at abn amro at the start 
of her career ann was an awardwinning research 
engineer culminating as the head of offshore 
engineer – planning for british gas she holds a bsc 
in pure mathematics from sheffield university and an 
msc with research into medical statistics from 
newcastle university in the uk
8 graham chipchase 51 
nonexecutive director april 2012
committee membership member of the 
remuneration committee 
skills and experience graham has served as  
chief executive officer of global consumer 
packaging company rexam plc rexam since 
2010 after serving at rexam as group director 
plastic packaging and group finance director 
previously he was finance director of aerospace 
services at the global engineering group gkn plc 
from 2001 to 2003 after starting his career with 
coopers  lybrand deloitte he held various finance 
roles in the industrial gases company the boc 
group plc now part of the linde group he is a 
fellow of the institute of chartered accountants in 
england and wales and holds an ma hons in 
chemistry from oriel college oxford
9 jeanphilippe courtois 54 
nonexecutive director february 2008
committee membership member of the audit 
committee 
skills and experience jeanphilippe has more  
than 30 years’ experience in the global technology 
industry he is president of microsoft international 
and previously served as chief executive officer and 
president of microsoft emea jeanphilippe has also 
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 served as an eu ambassador for the year of 
creativity and innovation and in 2011 was named 
one of ‘tech’s top 25’ by the wall street 
journal europe 
other appointments jeanphilippe is a board 
member of planet finance a leading international 
microfinance organisation 
10 rudy markham 68 
nonexecutive director september 2008 
committee membership chairman of the audit 
committee and member of the remuneration 
committee and nomination and governance 
committee 
skills and experience rudy takes a particular 
interest on behalf of the board in safety health and 
environment she assurance he has significant 
international business and financial experience 
having formerly held various senior commercial and 
financial positions with unilever culminating in his 
appointment as its chief financial officer
other appointments rudy is chairman and a 
nonexecutive director of moorfields eye hospital 
nhs foundation trust and a nonexecutive member 
of the boards of united parcel services inc and 
legal  general plc he is also a nonexecutive 
member of the operating and supervisory boards  
of the uk foreign and commonwealth office 
chairman of the supervisory board of corbion nv 
formerly csm nv a fellow of the chartered 
institute of management accountants and a fellow 
of the association of corporate treasurers he 
served as a nonexecutive director of the uk 
financial reporting council from 2007 to 2012
11 nancy rothwell 59 
nonexecutive director april 2006
committee membership chairman of the  
science committee and member of the 
remuneration committee and nomination and 
governance committee 
skills and experience nancy oversees  
responsible business on behalf of the board as  
is described more fully in responsible business  
from page 227  she is a distinguished life scientist 
and academic 
other appointments nancy is president and 
vicechancellor of the university of manchester 
she is also cochair of the prime minister’s council 
for science and technology and a member of the 
science and technology honours committee and 
the royal society council previously she served as 
president of the british neuroscience association 
and of the society of biology and on the councils  
of the medical research council the biotechnology 
and biological sciences research council the 
academy of medical sciences and cancer 
research uk
12 shriti vadera 52 
nonexecutive director january 2011
committee membership member of the audit 
committee 
skills and experience shriti has significant 
knowledge of global finance emerging markets and 
public policy she has advised governments banks 
and investors on the eurozone crisis the banking 
sector debt restructuring and markets and has 
served as a g20 adviser and a minister in the uk 
cabinet office and business department and 
international development department she has 
also served on the council of economic advisers 
hm treasury where she focused on business and 
international economic issues prior to that shriti 
spent 14 years in investment banking with sg 
warburgubs
other appointments shriti is joint deputy 
chairman of santander uk and has been a 
nonexecutive director of bhp billiton since 2011
13 marcus wallenberg 58  
nonexecutive director april 1999
committee membership member of the science 
committee 
skills and experience marcus has international 
business experience across various industry 
sectors including the pharmaceutical industry  
from his directorship with astra prior to 1999 
other appointments marcus is chairman of 
skandinaviska enskilda banken ab saab ab and 
fam he is a member of the boards of investor ab 
temasek holdings limited and the knut and alice 
wallenberg foundation
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29 astrazeneca annual report and form 20f information 2014
strategic report strategic report  strategy
senior executive team
as at 31 december 2014
1 pascal soriot
ceo 
see page 28
2 marc dunoyer 
cfo
see page 28 
3 katarina ageborg
chief compliance officer 
katarina was appointed chief compliance officer  
in july 2011 and has overall responsibility for  
the design delivery and implementation of 
astrazeneca’s compliance responsibilities since 
joining astrazeneca in 1998 she has held various 
senior legal roles supporting commercial and 
regulatory and most recently led the global ip 
function from 2008 to 2011 before joining 
astrazeneca she established her own law firm in 
sweden and worked as a lawyer practising on civil 
and criminal cases katarina holds a master of law 
from uppsala university school of law in sweden
4 fiona cicconi 
executive vicepresident human resources 
fiona joined astrazeneca in september 2014 as 
executive vicepresident human resources she 
started her career at general electric where she held 
various human resources roles within the oil  gas 
business which included experience in major global 
acquisitions and driving change subsequently 
fiona spent a number of years at cisco before 
joining roche in 2006 where she was most recently 
responsible for global human resources for pharma 
technical operations where her primary focus was 
to build one culture between roche and genentech 
and identify and develop a sustainable supply of 
leadership and talent from within the organisation
5 ruud dobber 
executive vicepresident europe
ruud was appointed executive vicepresident 
europe in january 2013 and leads astrazeneca’s 
commercial operations in europe in this capacity 
ruud is responsible for sales marketing and 
commercial operations across astrazeneca’s 
businesses in the 28 eu member states he served 
as interim executive vicepresident gpps from 
december 2013 until may 2014 ruud joined 
astrazeneca in 1997 and has held various senior 
commercial roles including regional vicepresident 
of astrazeneca’s european middle east and african 
division and regional vicepresident for the asia 
pacific region since 2012 ruud has been an 
executive committee member of the european 
federation of pharmaceutical industries and 
associations efpia in 2011 he was chairman of 
the asia division of pharmaceutical research and 
manufacturers of america ruud began his career 
as a scientist researching in the field of immunology 
and ageing he holds a doctorate in immunology 
from the university of leiden in the netherlands 
6 paul hudson 
president astrazeneca us and executive 
vicepresident north america
paul was appointed executive vicepresident north 
america in january 2013 and leads astrazeneca’s 
commercial operations in north america in this 
capacity he is accountable for driving growth  
and maximising the contribution of north america  
to astrazeneca’s global business paul joined 
astrazeneca in 2006 as vicepresident and primary 
care director uk and was later appointed president 
of astrazeneca k k astrazeneca’s japanese 
subsidiary and president of astrazeneca’s business 
in spain he has served as a standing board 
member of the japan pharmaceuticals 
manufacturers association and efpia in japan 
before joining astrazeneca paul worked for 
scheringplough where he held senior global 
marketing roles he received a degree in economics 
from manchester metropolitan university and a 
dipm from the uk’s chartered institute of marketing
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30 astrazeneca annual report and form 20f information 2014 7 dr bahija jallal 
executive vicepresident medimmune 
bahija was appointed executive vicepresident 
medimmune in january 2013 and is responsible  
for biologics research activities bahija is tasked  
with advancing the biologic pipeline of drugs she 
joined medimmune in 2006 as vicepresident 
translational sciences and has held roles of 
increasing responsibility at astrazeneca prior to 
joining astrazeneca bahija worked with chiron 
corporation where she served as vicepresident 
drug assessment and development bahija 
received a master’s degree in biology from the 
université de paris vii and her doctorate in 
physiology from the université pierre et marie curie 
paris she conducted her postdoctoral research  
at the maxplanck institute of biochemistry in 
martinsried germany she is a member of the 
american association of cancer research  
the american association of science the 
pharmacogenomics working group and the board 
of directors of the association of women in science 
8 mark mallon 
executive vicepresident international 
mark was appointed executive vicepresident 
international in january 2013 and is responsible for 
the growth and performance of astrazeneca’s 
commercial businesses in various regions including 
asia pacific russia latin america the middle east 
and africa since joining astrazeneca in 1994 mark 
has held multiple senior sales and marketing roles 
including regional vicepresident for asia pacific 
president of astrazeneca’s chinese and italian 
subsidiaries chief operating officer of 
astrazeneca’s japanese subsidiary and vice
president of astrazeneca’s us gastrointestinal and 
respiratory businesses he has served as a member 
of the board of directors for christiana care the 
largest hospital system in delaware and an 
executive committee member for rdbased 
pharmaceutical association committee the china 
industry association for innovative pharmaceutical 
companies mark began his career in the 
pharmaceutical industry in management consulting 
he holds a degree in chemical engineering from the 
university of pennsylvania and an mba in marketing 
and finance from the wharton school of business 
9 luke miels 
executive vicepresident gpps 
luke was appointed executive vicepresident 
gpps in may 2014 leading astrazeneca’s global 
marketing and commercial operations luke began 
his career in 1995 with astrazeneca in australia as  
a sales representative and product manager for 
plendil and diprivan he joined aventis in 2000 as 
marketing and strategic planning manager in 
australia and held roles of increasing seniority from 
country manager for new zealand and thailand to 
leading the analytics and commercial effectiveness 
function of aventis us following the sanofiaventis 
merger he led the integration office in the us and 
was then appointed vicepresident of sales for 
metabolism luke joined roche in 2006 as head of 
metabolism for global marketing and in 2009 was 
appointed regional vicepresident asia pacific for 
the pharmaceuticals division joining the leadership 
team of the pharmaceuticals division luke holds a 
bsc in biology from flinders university in adelaide 
and an mba from the macquarie university sydney
10 dr briggs morrison 
executive vicepresident gmd and chief 
medical officer
briggs was appointed executive vicepresident 
gmd in january 2013 and leads our global 
latestage development organisation for both small 
molecules and biologics he is also the company’s 
chief medical officer he joined astrazeneca in  
2012 from pfizer where he was head of medical 
excellence overseeing development medical affairs 
and safety and regulatory affairs for pfizer’s human 
health businesses briggs has a track record of 
successfully developing novel medicines in roles  
at both pfizer and merck he has a biology degree 
from georgetown university and a medical 
doctorate from the university of connecticut  
briggs has also undertaken an internship and 
residency in internal medicine at the massachusetts 
general hospital a fellowship in medical oncology  
at the danafarber cancer institute and a 
postdoctoral research fellowship in genetics at 
harvard medical school
11 dr menelas pangalos 
executive vicepresident imed 
menelas mene was appointed executive 
vicepresident imed in january 2013 and leads 
astrazeneca’s small molecule discovery research 
and earlystage development activities mene joined 
astrazeneca from pfizer where he was senior 
vicepresident and chief scientific officer of 
neuroscience research previously he held senior 
discovery and neuroscience roles at wyeth and 
gsk he completed his undergraduate degree  
in biochemistry at the imperial college of science 
and technology london and earned a doctorate  
in neurochemistry from the university of london  
he is a visiting professor of neuroscience at king’s 
college london in the uk mene serves on the 
medical research council and the innovation  
board for the association of the british 
pharmaceutical industry
12 jeff pott 
general counsel
jeff was appointed general counsel in january 
2009 and has overall responsibility for all aspects  
of astrazeneca’s legal and ip function he joined 
astrazeneca in 1995 and has worked in various 
litigation roles where he has had responsibility for ip  
antitrust and product liability litigation before joining 
astrazeneca he spent five years at the us legal firm 
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
13 david smith 
executive vicepresident operations  
information services 
david joined astrazeneca in 2006 as executive 
vicepresident operations he leads astrazeneca’s 
global manufacturing and supply organisation  
and is responsible for the safety health and 
environment regulatory compliance procurement 
and engineering functions david also has overall 
responsibility for information services he spent  
his early career in pharmaceuticals initially with the 
wellcome foundation in the uk and then spent  
nine years in the consumer goods sector working  
for estée lauder inc and timberland llc in  
senior supply chain roles in 2003 he returned  
to the pharmaceutical sector joining novartis  
in switzerland
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31 astrazeneca annual report and form 20f information 2014
strategic report strategic report  therapy area review
therapy area overview
our business model describes how we create and sustain value over the lifecycle of a 
medicine across our therapy areas in this section we review our therapy areas including 
our portfolio of marketed products pipeline projects strategic priorities capabilities 
resources and business development activities 
as outlined in strategic priorities from  
page 18 a key element of our drive  
to achieve scientific leadership is our  
focus on innovative science in three main 
therapy areas cardiovascular and 
metabolic diseases cvmd oncology  
and respiratory inflammation and 
autoimmunity ria we apply our distinctive 
capabilities to biologics small molecules 
immunotherapies protein engineering 
technologies and delivery devices across 
our therapy areas to deliver lifechanging 
medicines to patients and create value for 
shareholders our approach to infection 
neuroscience and gastrointestinal ing  
is opportunitydriven
our therapy area activities are led by our 
global product and portfolio strategy  
group gpps which serves as the bridge 
between our rd and commercial 
functions gpps works to provide strategic 
direction from earlystage research to 
commercialisation and to integrate our 
corporate portfolio therapy area and 
product strategies to drive scientific 
innovation prioritise investment support  
the growth of our therapy areas and 
accelerate business development gpps 
also works closely with healthcare providers 
regulatory authorities and payers to ensure 
our medicines help fulfil unmet medical 
need and provide economic as well as 
therapeutic benefits 
development pipeline
the pipeline overview on the left 
summarises our development pipeline  
as at 31 december 2014
during 2014 we progressed numerous 
projects into clinical and latestage 
development across the portfolio 50 
projects successfully progressed to their 
next phase in 2014 this includes 14 nme 
clinical progressions and four first approvals 
and two first launches in the eu china 
japan andor the us five nmes 
commenced phase iiipivotal phase ii 
studies as a result of the acceleration of 
select rd programmes twenty one 
projects inclusive of combination trials 
entered phase i the pipeline progressions 
table opposite summarises our key pipeline 
progressions in 2014 further information  
is in the development pipeline table from 
page 197 
nine projects were discontinued in 2014 – 
eight projects for poorer than anticipated 
safety or efficacy results and one for 
economic reasons
progress against targets
we continued to strengthen our latestage 
pipeline in 2014 through rd collaborations 
acquisitions and licensing we also made 
significant progress against the pipeline 
targets we set in march 2013 since march 
2013 we have initiated nine phase iiipivotal 
phase ii nme starts against a target of  
five to seven we now have 13 nmes in  
phase iiipivotal phase ii studies or under 
regulatory review which exceeds our target 
of nine to ten nmes in phase iiipivotal 
phase ii studies or under regulatory review 
by 2016 
having strengthened our latestage pipeline 
we are now focused on securing regulatory 
approvals for these nmes and delivering our 
medicines to patients we are also focused 
on strengthening our earlystage pipeline  
to reflect our focus as communicated at 
our investor day in november 2014 we 
have set the following targets for the end of 
2016 12 to 16 phase ii starts 14 to 16 nme 
and line extension regulatory submissions 
and 8 to 10 nme and line extension 
regulatory approvals 
  for more information on the risks of product 
development please see risk from page 203
biologics and specialty care medicines
nearly 50 of our pipeline is comprised  
of biologics including more than 30 
molecules in clinical development as 
detailed in infrastructure on page 69 the 
expansion of our frederick maryland 
us facility will help us keep pace with an 
increasing demand for the development 
and use of biologics and support the 
progression of drug candidates across our 
main therapy areas much of our biologics 
work focuses on specifically defined or 
pipeline overview
our pipeline includes 133 projects of 
which 1 18 are in the clinical phase of 
development
  40 projects in phase i including 28 
nmes and 10 oncology combination 
projects
  35 projects in phase ii including 28 
nmes and significant additional 
indications for projects that have 
reached phase iii
  32 projects in latestage development 
either in phase iiipivotal phase ii studies 
or under regulatory review
  13 nmes
  1 1 projects exploring additional 
indications for these nmes
  8 projects already approved or 
launched in the eu china japan 
andor the us
  26 lcm projects
 only includes material projects
32 astrazeneca annual report and form 20f information 2014 biologically targeted populations 
determined by the scientific pathway of  
the disease and mode of action of the 
molecule our pipeline also contains a 
number of specialty care medicines  
an increasing number of specialty care 
medicines require a diagnostic test for 
patient eligibility or to achieve the best 
outcomes specialty care medicines 
generally treat more severe diseases with 
the patient population concentrated under 
the care of a subset of healthcare providers 
and in specialty healthcare facilities 
specialty care medicines also generally 
command higher prices and as such  
must deliver greater value to make them 
available to the right patients we must 
tightly coordinate our commercial  
medical and supply chain teams 
  for more information on the risks 
associated with biologics and our products 
please see risk from page 203
our products 
while the focus of this therapy area review 
is on our key marketed products many of 
our other products are crucial to certain 
countries within emerging markets and  
our business
for more information on our potential  
new products and product lifecycle 
developments please see the therapy  
area pipeline tables on pages 36 to 37   
40 to 41 44 to 45 and 48 and the 
development pipeline table from  
page 197  for information on patent expiries 
of our key marketed products please see 
patent expiries from page 201
indications for each product described in 
this therapy area review may vary among 
countries please see local prescribing 
information for countryspecific indications 
for any particular product
many of our products are subject to 
litigation information about material legal 
proceedings can be found in note 27 to  
the financial statements from page 182 
  details of relevant risks are set out in risk 
from page 203
global sales by therapy area
2014 2013 2012
sales
m
actual
growth

cer
growth

sales
m
actual
growth

cer
growth

sales
m
cardiovascular and metabolic diseases 9802 11 12 8830 7 6 9531
oncology 3027 5 2 3193 9 2 3489
respiratory inflammation and autoimmunity 5063 8 10 4677 6 7 4415
infection neuroscience and gastrointestinal 8203 9 7 9011 14 13 10490 
other — — — – – – 48
total 26095 1 3 25711 8 6 27973
  represents sales by aptium oncology the last portion of aptium oncology was sold in july 2012
pipeline progressions
progressions to next phase 51 total progressions to next phase 50 
phase i 24 phase ii 15 phase iii 11
  13 nmes had first dose in phase i
  8 combination projects had first dose in phase i
  1 significant additional indication project had first  
dose in phase i
  1 inlicensed project entered phase i
  1 project reentered phase i having previously  
been discontinued
  8 nmes progressed from phase i  
to phase ii
  1 significant additional indication 
project progressed from phase i  
to phase ii
  4 significant additional indication 
projects were added to phase ii
  2 inlicensed projects were added  
to phase ii
  5 nmes progressed from 
phase ii to phase iii
  1 significant additional 
indication project 
progressed from phase ii 
to phase iii
  4 significant additional 
indication projects were 
added to phase iii
  1 inlicensed project was 
added to phase iii
lcm projects added 8
discontinued projects 9
33 astrazeneca annual report and form 20f information 2014
strategic report strategic report  therapy area review
therapy area overview continued
therapy area summary
respiratory inflammation 
and autoimmunity 
infection neuroscience  
and gastrointestinal 
oncology cardiovascular and  
metabolic diseases 
5063m
sales in 2014 2013 4677m
8203m
sales in 2014 2013 9011m
3027m
sales in 2014 2013 3193m
9802m
sales in 2014 2013 8830m
six major market approvals for 
medicines that treat type 2 diabetes  
in 2014
following our acquisition of bms’s 
share of the diabetes alliance we  
have one of the broadest noninsulin 
antidiabetic portfolios in the industry
strong year for brilintabrilique in  
terms of revenue growth and other 
developments including the closure of 
the doj investigation and atlantic 
and pegasus trials data
fda granted azd9291 breakthrough 
therapy designation orphan drug and 
fast track status
immunooncology portfolio has almost 
30 combination trials underway or 
planned strengthened our capabilities 
with definiens acquisition
oncology became the sixth growth 
platform in january 2015 with several 
potential regulatory submissions in  
2015 and 2016
aim to deliver six new cancer therapies 
by 2020 and 15 nmes and 20 new 
lcm projects by 2023
eight projects are in phase iii or under 
regulatory review
strengthened our portfolio and 
capabilities by acquiring the rights to 
almirall’s respiratory business and 
inhalation device subsidiary
leveraging biologics in severe asthma 
and copd and developing several 
promising assets in inflammation and 
autoimmune disease areas
alliance with lilly regarding our bace 
inhibitor azd3293 for alzheimer’s 
disease exemplifies value creation 
through licensing of the science in  
our pipeline
broad portfolio of medicines for serious 
grampositive and gramnegative 
bacterial infections and working to 
develop lifechanging medicines to  
fight these infections
12 nme or lcm project regulatory approvals in major markets
  bydureon pen us eu for type 2 
diabetes
  epanova us for 
hypertriglyceridaemia
  farxigaforxiga us japan for  
type 2 diabetes
  myalept us for generalised 
lipodystrophy
  xigduo xrxigduo us eu for  
type 2 diabetes
  lynparza us eu for brcamutated 
ovarian cancer
  movantikmoventig us eu for 
opioidinduced constipation
6 nme or lcm project regulatory submissions in major markets
  bydureon pen japan for type 2 
diabetes
  saxagliptindapagliflozin fdc us  
for type 2 diabetes 
  iressa us for nonsmall cell lung 
cancer nsclc
  lynparza us for brcamutated 
ovarian cancer
  lesinurad us eu for gout
5 phase iii nme starts
  roxadustat for chronic kidney disease 
and endstage renal disease 
 
 
 
 
 
  pdl1 for nsclc
  azd9291 for nsclc
  tremelimumab for mesothelioma
  tralokinumab for severe asthma
 cardiovascular and metabolic  
diseases from page 35
 oncology from page 40 respiratory inflammation and 
autoimmunity from page 44
 infection neuroscience and 
gastrointestinal from page 48
34 astrazeneca annual report and form 20f information 2014 cardiovascular and metabolic diseases
strategic report  therapy area review
our strategic priorities
we are a leader in the treatment of cvmd 
focused on bringing lifechanging medicines 
to patients for thrombosis blood clotting 
atherosclerosis hardening of the arteries 
dyslipidaemia hypertension and metabolic 
diseases including diabetes and related 
complications
despite improvements in the diagnosis and 
treatment of cvmd unmet medical need 
remains high also the prevalence of these 
diseases and associated complications is 
increasing worldwide 
our strategy in cvmd focuses on 
maximising and maintaining patient benefit 
from our portfolio of medicines ensuring 
access to brilintabrilique and accelerating 
clinical programmes and potential new 
therapies through innovative science  
and collaboration
we are also investing heavily in clinical 
development and lifecycle management 
nearly 60000 patients participate in  
our rdled cv trials at more than  
5700 sites worldwide we are also  
focusing on diabetes research which 
includes more than 50 clinical studies 
worldwide in which nearly 40000 patients 
are expected to be enrolled 
we are expanding our core capabilities and 
research programmes into new modalities 
and regenerative medicine to provide new 
treatment paradigms for heart failure 
diabetes and chronic kidney disease 
to help achieve scientific leadership we  
are engaging in collaborations that focus  
on scientific innovation in cv metabolic and 
renal diseases for example during 2014 
we entered into collaborations with 
  max planck institute of molecular 
physiology to create a satellite unit to 
study areas of new modality chemistry  
in cv metabolic and renal diseases
our marketed products
cardiovascular disease
  atacand
1
atacand hctatacand plus 
candesartan cilexetil is an angiotensin ii antagonist 
for the 1st line treatment of hypertension and 
symptomatic heart failure
  brilintabrilique ticagrelor is an oral antiplatelet  
for acute coronary syndromes acs 
  crestor
2
 rosuvastatin calcium is a statin for 
dyslipidaemia and hypercholesterolemia in some 
markets it is also indicated to slow the progression of 
atherosclerosis and reduce the risk of first cv events
  plendil felodipine is a calcium antagonist for 
hypertension and angina 
  selokentoprolxl metoprolol succinate is  
a betablocker once daily tablet for 24hour control  
of hypertension and heart failure and angina
  tenormin
3
 atenolol is a cardioselective beta
blocker for hypertension angina pectoris and  
other cv disorders
  zestril
4
 lisinopril dihydrate is an angiotensin
converting enzyme inhibitor for a wide range  
of cv diseases including hypertension
metabolic disease 
  byetta exenatide injection is an injectable medicine 
indicated to improve blood sugar glucose control 
along with diet and exercise in adults with type 2 
diabetes mellitus
  bydureon exenatide extendedrelease for injectable 
suspension is a once weekly injectable medicine 
indicated to improve blood sugar glucose along 
with diet and exercise in adults with type 2 diabetes 
mellitus
  bydureon pen exenatide extendedrelease for 
injectable suspension delivers exenatide via 
microsphere technology in a once weekly dose 
requiring no titration 
  farxigaforxiga dapagliflozin is a selective inhibitor 
of human sodiumglucose cotransporter 2 sglt2 
inhibitor to improve glycaemic control in adult 
patients with type 2 diabetes mellitus
we push the boundaries of science to create innovative medicines that address 
multiple cardiovascular risk factors offer individualised approaches for diabetes 
patients treat chronic kidney disease and ultimately save lives
  kombiglyze xr saxagliptin and metformin xr 
combines saxagliptin onglyza and metformin 
extended release metformin metformin xr in  
a once daily tablet for type 2 diabetes mellitus 
  komboglyze saxagliptin and metformin hcl 
combines saxagliptin onglyza and metformin 
immediate release metformin ir in a twice daily 
tablet for type 2 diabetes mellitus 
  myalept
5
 metreleptin for injection is a 
recombinant analogue of human leptin indicated 
in the us as an adjunct to diet as replacement 
therapy to treat the complications of leptin 
deficiency in patients with congenital or acquired 
generalised lipodystrophy 
  onglyza saxagliptin is an oral dipeptidyl 
peptidase 4 dpp4 inhibitor for type 2 diabetes 
mellitus
  symlin pramlintide acetate is an injected amylin 
analogue for type 1 and type 2 diabetes mellitus 
in patients with inadequate glycaemic control on 
meal time insulin 
  xigduo dapagliflozin and metformin 
hydrochloride combines dapagliflozin farxiga
forxiga an sglt2 inhibitor and metformin 
hydrochloride in a twice daily tablet to improve 
glycaemic control in adult patients with type 2 
diabetes mellitus who are inadequately controlled 
by metformin alone
  xigduo xr dapagliflozin and metformin 
hydrochloride extendedrelease combines 
dapagliflozin farxigaforxiga an sglt2 
inhibitor and metformin hydrochloride 
extendedrelease in a once daily tablet to 
improve glycaemic control in adult patients with 
type 2 diabetes mellitus who are inadequately 
controlled by metformin alone
1
 licensed from takeda chemicals industries ltd
2
   licensed from shionogi the extension of the global 
licence agreement with shionogi for crestor and the 
modification of the royalty structure became effective 
1 january 2014
3
  divested us rights to tenormin to alvogen pharma  
us inc effective 9 january 2015
4
  licensed from merck divested us rights to zestril to 
alvogen pharma us inc effective 9 january 2015
5
 divested to aegerion effective 9 january 2015 
233m
by 2030 almost 233 million people will die annually 
from cv disease mainly from heart disease and stroke 
meaning that cv disease will remain the leading cause 
of death
source who factsheet 2013 data from 2008 
35 astrazeneca annual report and form 20f information 2014
strategic report strategic report
what science can do
cardiac regeneration
mrna being read by a ribosome to 
produce signalling proteins these signals 
cause stem cells in the heart to proliferate 
and differentiate to new cardiac cells 
that can repair damage in the heart 
we are researching medicines that 
generate these signals and functional 
effects in the heart
cardiovascular and metabolic diseases cvmd
phase i phase ii phase iii lcm projects
large molecule small molecule small molecule large molecule small molecule
medi6012 —azd4901 — brilintabrilique  — myalept 
 
✓ brilintabrilique  —
euclid 
farxigaforxiga —
declaretimi 58 
medi8111   tenapanor  —
azd1722

epanova
  
approved but not launched
brilintabrilique —
pegasustimi 54 
farxigaforxiga  
type 1 diabetes 
farxigaforxiga✓ brilintabrilique  —
socrates 
kombiglyze xr —
komboglyze 
roxadustat

  ➔ brilintabrilique  —
themis 
onglyza  ✓
savortimi 53 
brilintabrilique  
hestia 
saxagliptin f
dapagliflozin fdc 
bydureon  —
exscel 
xigduo xr  ✓
xigduo 
bydureon  ✓
dual chamber pen 
bydureon  —
weekly suspension 
epanova  
strength 
  addition
 — no change
➔ progression
f new filing
✓ approvedlaunched
key 
 partnered product
  farxiga in the us forxiga in 
the rest of the world
  kombiglyze xr in the us 
komboglyze in the eu 
make hearts 
healthier
36 astrazeneca annual report and form 20f information 2014   hig h b lo o d  
pressure 460bn
  abnormal levels of  
blood cholesterol 296bn
 diabetes 518bn
 thrombosis 96bn
 other 415bn 
therapy area world market
matq314 
1786bn
annual worldwide market value
strategic report  therapy area review
  mitsubishi tanabe pharma corporation  
in the area of diabetic nephropathy to 
validate and progress novel research 
targets and molecules into clinical 
development
  shanghai institutes of biological sciences 
in the area of cv diseases to study newly 
formed coronary vessels
cardiovascular disease 
hypertension high blood pressure and 
dyslipidaemia abnormal levels of blood 
lipids damage the arterial wall which leads 
to atherosclerosis lipidmodifying therapy 
primarily statins is the primary treatment for 
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 acs is 
associated with considerable mortality and 
morbidity and a significant need exists to 
improve patient outcomes and reduce 
treatment costs
we are a leader in the treatment  
of cvmd focused on bringing life 
changing medicines to patients
our 2014 focus
brilintabrilique one of our growth platforms 
is an oral antiplatelet treatment for acs in a 
new chemical class called cyclopentyl
triazolopyrimidines which are selective 
lastly in january 2015 we announced  
that the pegasustimi 54 study a large 
scale outcomes trial involving over 21000 
patients under the parthenon 
programme successfully met its primary 
efficacy endpoint the study investigated 
two doses of brilintabrilique on  
a background of lowdose aspirin versus 
placebo plus lowdose aspirin in patients 
aged 50 and older with a history of heart 
attack and one additional cv risk factor  
the primary efficacy endpoint was a 
composite of cv death mi or stroke  
while full evaluation of the data is ongoing 
preliminary analysis did not reveal any 
unexpected safety issues the results build 
on our understanding of the benefits of 
brilintabrilique for patients with acs and 
offer important clinical insights into its 
potential role for the longerterm prevention 
of cv events
crestor is approved in 109 countries  
for the treatment of dyslipidaemia and 
hypercholesterolaemia in some markets  
it is also indicated to slow the progression  
of atherosclerosis and reduce the risk of  
first cv events crestor has been shown  
to more effectively lower lowdensity 
lipoprotein ldl c socalled ‘bad 
cholesterol’ and achieve ldl c goals than 
other statins and to increase highdensity 
lipoprotein cholesterol hdl c socalled 
‘good cholesterol’ and reduce 
atherosclerotic plaque crestor  however 
faces competition from atorvastatin lipitor 
and other generic products and patents 
protecting crestor have been challenged in 
various jurisdictions details of these matters 
are included in note 27 to the financial 
statements from page 182
adenosine diphospate adp receptor 
antagonists that act on the p2y12 
adpreceptor brilintabrilique is approved  
in over 100 countries including the us 
canada and brazil under the trade name 
brilinta and in the eu iceland and norway 
under the trade name brilique it is currently 
under regulatory review in three additional 
countries brilintabrilique is the first p2y12 
receptor antagonist that also increases local 
endogenous adenosine levels by inhibiting 
ent1 since launch more than one million 
patients have been treated with brilinta
brilique and it has been included in 13 
major acs treatment guidelines globally 
there were several important developments 
for brilintabrilique in 2014 in july the ema 
updated the eu summary of product 
characteristics providing further regulatory 
validation that brilintabrilique differs from 
thienopyridines in its mode of action and  
by offering flexible oral administration in 
august the doj confirmed that it was 
closing its investigation into plato a 
brilintabrilique clinical trial the closure of 
the investigation which related to a 2013 
civil investigative demand reaffirms our 
confidence in brilintabrilique and the 
integrity of the plato trial and allows us  
to focus on delivering the full potential of 
brilintabrilique to patients in september 
results from the phase iv atlantic study 
indicated that the profile of brilintabrilique  
is comparable whether administered in a 
prehospital or inhospital setting to st 
segment elevation myocardial infarction 
stemi patients these results allow us to 
better understand the role of brilintabrilique 
in treating stemi patients and indicate that 
brilintabrilique may be initiated in stemi 
patients prehospital or inhospital with no 
adverse impact on bleeding in addition  
in september 2014 the american heart 
association aha and the american 
college of cardiology acc updated  
their guidelines for the management of 
nonstelevation acute coronary syndrome 
nsteacs patients to support brilinta  
as the preferred p2y12 inhibitor for the 
management of nsteacs patients who 
undergo an early invasive or ischaemia
guided strategy or those who receive a 
coronary stent this is the first time the  
aha and acc have recommended one  
oral antiplatelet over another in the treatment 
of acs 
cardiovascular and metabolic diseases cvmd
phase i phase ii phase iii lcm projects
large molecule small molecule small molecule large molecule small molecule
medi6012 —azd4901 — brilintabrilique  — myalept 
 
✓ brilintabrilique  —
euclid 
farxigaforxiga —
declaretimi 58 
medi8111   tenapanor  —
azd1722

epanova
  
approved but not launched
brilintabrilique —
pegasustimi 54 
farxigaforxiga  
type 1 diabetes 
farxigaforxiga✓ brilintabrilique  —
socrates 
kombiglyze xr —
komboglyze 
roxadustat

  ➔ brilintabrilique  —
themis 
onglyza  ✓
savortimi 53 
brilintabrilique  
hestia 
saxagliptin f
dapagliflozin fdc 
bydureon  —
exscel 
xigduo xr  ✓
xigduo 
bydureon  ✓
dual chamber pen 
bydureon  —
weekly suspension 
epanova  
strength 
cardiovascular and metabolic diseases continued
37 astrazeneca annual report and form 20f information 2014
strategic report strategic report  therapy area review
despite generic competition atacand 
remains an important treatment for 
hypertension and symptomatic heart  
failure it is approved for hypertension in 
more than 100 countries and symptomatic 
heart failure in more than 80 countries 
atacand plus candesartan cilexetil
hydrochlorothiazide which is approved  
in more than 100 countries is an fdc of 
atacand and the diuretic hydrochlorothiazide 
for the treatment of hypertension in  
patients who require more than one 
antihypertensive therapy
in may 2014 the fda approved epanova 
omega3carboxylic acids as an adjunct  
to diet to reduce triglyceride levels in  
adults with severe hypertriglyceridaemia 
triglyceride levels greater than or equal  
to 500mgdl epanova is the first fda 
approved prescription omega3 in free fatty 
acid form and the first prescription omega3 
in the us to have a dosing option as few  
as two capsules once a day 
clinical studies 
in addition to the pegasus trial described 
above brilintabrilique is being studied  
in four other clinical trials under the 
parthenon programme parthenon  
is astrazeneca’s largest ever cv outcomes 
programme involving nearly 80000 patients 
at high risk of cv events mi stroke andor 
cv death due to their underlying disease  
it includes five key studies covering broad 
patient populations across varying 
timescales and aims to support four new 
indications for brilintabrilique over the  
next four years 
  parthenon programme case study  
on page 51 
also in 2014 we initiated the strength 
trial a large longterm outcomes trial 
involving 13000 patients to evaluate the 
safety and efficacy of epanova on cv 
outcomes in combination with statin therapy 
in patients with mixed dyslipidaemia who 
are at increased risk of cv disease as the 
largest cv outcomes trial of any prescription 
omega3 strength may provide 
important insights into the impact of 
lowering triglycerides with epanova 
metabolic and renal diseases
type 2 diabetes mellitus is a chronic 
progressive disease that accounts for  
more than 90 of diabetes cases 
worldwide disease prevalence continues  
to grow particularly among those at a 
younger age and many patients require 
multiple medications
various oral generic and branded 
treatments such as biguanides and 
sulfonylureas exist newer classes of 
treatments such as dpp4 inhibitors 
sglt2 inhibitors and glucagonlike  
peptide 1 glp1 agonists however  
are successfully entering the market  
the cv safety of these new classes has 
been the subject of recent regulatory 
reviews and guidance documents
our 2014 focus
in february 2014 we completed the 
acquisition of the entirety of bms’s interest 
in our joint diabetes alliance by obtaining 
the ip and global rights for the development 
manufacture and commercialisation of  
the diabetes business which includes 
onglyza kombiglyze xr komboglyze 
farxigaforxiga xigduo xigduo xr  
byetta bydureon myalept and symlin we 
enhanced our primary care and specialty 
care portfolio and geographical reach  
we now have one of the broadest 
noninsulin antidiabetic portfolios with 
products in three growing classes of 
diabetes treatments dpp4 sglt2 and 
glp1 for more information about this 
acquisition please see note 24 to the 
financial statements from page 170
also in 2014 we entered into an agreement 
with aegerion to divest myalept an orphan 
product indicated to treat complications of 
leptin deficiency in patients with generalised 
lipodystrophy under the terms of the 
agreement aegerion will pay astrazeneca 
325 million to acquire the global rights to 
develop manufacture and commercialise 
myalept subject to an existing distributor 
licence with shionogi covering japan  
south korea and taiwan our divestment  
of myalept reinforces our focus on our 
strategic priorities and enables us to 
concentrate our resources on disease areas 
where we can provide the greatest benefit 
to patients
farxigaforxiga dapagliflozin is a 
firstinclass sglt2 inhibitor indicated as an 
adjunct to diet and exercise in combination 
with other glucoselowering medicinal 
products including insulin or as a 
monotherapy for the treatment of type 2 
diabetes mellitus in 2014 we secured 
approval for dapagliflozin in the us where  
it is called farxiga and japan where it is 
called forxiga starting with the eu in  
2012 where it is called forxiga it is now 
approved in over 50 countries it is under 
regulatory review in 20 additional countries 
xigduo dapagliflozin and metformin 
hydrochloride was approved in january 
2014 in the eu as an adjunct to diet and 
exercise to improve glycaemic control in 
347 million people worldwide have diabetes 
who projects that diabetes will be the 
seventh leading cause of death in 2030
source who factsheet 2011
347m
cardiovascular and metabolic diseases continued
38 astrazeneca annual report and form 20f information 2014 patients aged 18 and over with type 2 
diabetes mellitus who are inadequately 
controlled on their current metforminbased 
treatment regimen or are being treated  
with dapagliflozin and metformin separately 
xigduo is approved in 33 countries 
including the us with xigduo xr november 
2014 – the first and only once daily  
sglt2 inhibitor and extended release 
metformin fdc
in the pipeline 
we are developing an fdc of saxagliptin 
and dapagliflozin which combines two 
complementary mechanisms designed to 
help more patients reach their treatment 
goals in may 2014 we reported results of 
the first clinical trial of this novel combination 
which demonstrated powerful glucose 
lowering and allowed more than twice as 
many patients to reach the recognised 
glucose goal than either agent alone we 
submitted an nda to the fda in december 
2014 and expect to submit a regulatory filing 
in the eu in 2015
in 2014 we continued to develop delivery 
systems for bydureon and secured approval 
for the bydureon pen in the us and eu the 
bydureon pen is a prefilled singleuse pen 
injector that eliminates the need to transfer 
the medication between a vial and syringe 
during the selfinjection process it was 
successfully launched in the us in 
september 2014 and is expected to 
launch in the eu in early 2015 we are also 
developing a once weekly suspension of 
bydureon to be used in an autoinjector 
device the phase iii programme for this 
asset continues to progress and the first 
data was presented in 2014
through our strategic collaboration  
with fibrogen we continue to develop 
roxadustat a firstinclass oral compound 
for the treatment of anaemia associated  
with chronic kidney disease ckd  
and endstage renal disease esrd  
in phase ii clinical studies in the us 
roxadustat met its primary objectives  
and an extensive roxadustat phase iii 
development programme is currently 
underway phase iii trials are planned  
in china and we expect to submit 
regulatory filings in china in 2016 and  
in the us in 2018
we are also developing tenapanor a 
firstinclass inhibitor of nhe3 a sodium 
transporter in the gut with ardelyx inc  
for the treatment of hyperphosphatemia  
and ckd if development is successful 
tenapanor may fulfil a significant unmet 
medical need for patients with ckd by 
delaying the progression of ckd to esrd 
and reducing mortality and morbidity 
tenapanor is also being studied as a 
treatment for irritable bowel syndrome  
with constipation
clinical studies 
the cv outcome study savortimi 53 
saxagliptin assessment of vascular 
outcomes recorded in patients with  
type 2 diabetes mellitus was completed in 
september 2013 making onglyza one of 
the most extensively studied antidiabetic 
medications the trial involved 16500 adult 
patients with type 2 diabetes mellitus with a 
history of established cv disease or multiple 
risk factors the trial also fulfilled an fda 
postmarketing requirement in this study 
onglyza met the primary safety objective of 
noninferiority but did not meet the primary 
efficacy objective of superiority in july 2014 
the ema updated the eu label to include 
these study results other regulatory 
authorities are currently reviewing the data 
declare a large cv outcomes trial to 
assess the impact of farxigaforxiga on  
cv riskbenefit continued in 2014 this trial 
evaluates whether farxigaforxiga 10mg 
when added to a patient’s current 
antidiabetes therapy reduces cv events 
such as mi ischaemic stroke and 
cvrelated death compared with placebo 
the trial will enrol approximately 17 000 adult 
patients with type 2 diabetes mellitus and  
is expected to be completed in 2019 
results from the phase ii study of farxiga
forxiga as compared with placebo in 
patients with type 1 diabetes were 
published in september 2014 these  
results demonstrated reductions in 24hour 
average glucose levels and glycaemic 
variability as well as a pharmacokinetic 
profile similar to that of patients with type 2 
diabetes mellitus in november 2014 we 
commenced a phase iii trial for farxiga
forxiga in patients with type 1 diabetes
the exenatide study of cardiovascular 
event lowering exscel study also 
continued during 2014 this study  
which began in 2010 and is expected  
to end in 2017  evaluates whether there  
are favourable cv effects of exenatide 
treatment using bydureon
we now have one of the 
broadest noninsulin 
antidiabetic portfolios…”
173m
an estimated 17 3 million people die annually from cv 
disease representing 30 of all global deaths more 
than 80 of these deaths occur in low to middle
income countries
source who factsheet 2013 data from 2008 
39 astrazeneca annual report and form 20f information 2014
strategic report strategic report
help more people 
survive cancer
oncology
phase i phase ii phase iii lcm projects
small molecule large molecule combination molecules small molecule large molecule small molecule large molecule small molecule
azd3759  medi0639

  — medi4736

  —
 dabrafenib  trametinib 
azd4547 —
 
medi551

  — azd9291  ➔
egfrm t790m nsclc
medi4736
 
 ➔
pacific stage iii nsclc 
caprelsa  —
differentiated thyroid cancer 
azd5312

   medi3617

  —azd9291 
 medi4736

 tatton 
selumetinib

  —
2nd line krasnsclc
medi573

  — caprelsa  f ✓
medullary thyroid cancer 
medi4736

  
atlantic 3rd line nsclc 
faslodex —
falcon 1st line advanced 
breast cancer 
azd9150

  — medi4736

 
various cancers
medi4736

 
 azd9291 sequencing study 
azd2014 — medi4736
  

solid tumours 
lynparza  ✓ moxetumomab  —
pasudotox

 
hairy cell leukaemia
azd8186  — medi565

  — medi4736

 
 iressa 
azd1775

 — moxetumomab ➔ 
pasudotox

 
pall
lynparza  —
solo1 
tremelimumab  ➔
azd8835   medi6469

  — medi4736

  —
 tremelimumab 
lynparza   
prostate cancer 
lynparza  —
solo2 
azd6738  — medi0680  — medi4736

 
 medi0680 
azd5363

  ➔ lynparza  —
gold 
azd9496  medi6383

 
 
medi4736

 
 medi6469

 
azd6094
  
➔
volitinib 
lynparza  ➔
olympiad  
metastatic breast cancer 
medi551

 
 medi0680 
azd9291  
1st line egfrm nsclc
lynparza  
olympia  
adjuvant breast cancer
medi551

 
 rituximab 
selumetinib

  —
select1 
2nd line kras nsclc 
medi6469

 
 tremelimumab 
selumetinib

 
astra  
differentiated thyroid cancer
selumetinib

   
sumit  
uveal melanoma
what science can do
circulating tumour dna
we have pioneered the use of 
circulating tumour dna ctdna in 
the diagnosis of cancer pieces of 
dna break off from a tumour and 
circulate in the bloodstream highly 
advanced methods are used to 
interrogate these tiny quantities of 
dna so that doctors gain information 
specific to a patient’s tumour to 
determine the most appropriate 
treatment through a noninvasive 
blood test
40 astrazeneca annual report and form 20f information 2014 strategic report  therapy area review
oncology
  nolvadex tamoxifen citrate is a widely used breast 
cancer treatment outside the us
  lynparza olaparib is an oral poly adpribose 
polymerase parp inhibitor approved in the eu for 
the treatment of adult patients with platinumsensitive 
relapsed brcamutated germline andor somatic 
highgrade serous epithelial ovarian fallopian tube  
or primary peritoneal cancer it is approved in the  
us for the treatment of patients with germline 
brcamutated advanced ovarian cancer who  
have been treated with three or more prior lines  
of chemotherapy 
  zoladex goserelin acetate implant in one and  
three month subcutaneous or intramuscular 
injections is a luteinising hormonereleasing 
hormone lhrh agonist used to treat prostate 
cancer breast cancer and certain benign 
gynaecological disorders it has been shown to 
improve overall survival both when used in addition 
to radical prostatectomy and radiotherapy and  
offers proven survival benefits for breast cancer 
patients with a favourable tolerability profile it is 
approved in more than 130 countries
our strategic priorities
for more than 40 years we have developed 
cancer drugs many of which have increased 
survival rates for patients around the world 
today we offer various hormonebased  
and targeted cancer therapies and are 
developing novel personalised and 
combination treatments to create significant 
value for patients and shareholders 
significant unmet medical need remains 
however for therapies that increase survival 
cure rates and time to recurrence our vision 
is to help meet this need by redefining the 
cancer treatment paradigm through 
scientific innovation accelerated clinical 
programmes and collaboration in january 
2015 oncology became our sixth growth 
platform with several potential submissions 
in 2015 and 2016 we aim to deliver six  
new cancer therapies by 2020 and 15 new 
nmes and 20 new line extensions by 2023 
our broad pipeline of nextgeneration 
medicines targets four main disease areas 
– breast ovarian lung and haematological 
cancers – through four key platforms 
immunotherapy tumour drivers and 
resistance mechanisms dna damage 
repair and antibodydrug conjugates 
our marketed products
  arimidex anastrozole is an aromatase inhibitor 
used to treat breast cancer and has been shown to 
be significantly superior to tamoxifen at preventing 
breast cancer recurrence during and beyond the 
fiveyear treatment course 
  caprelsa vandetanib is a kinase inhibitor indicated 
to treat aggressive and symptomatic medullary 
thyroid cancer mtc in patients with unresectable 
locally advanced or metastatic disease
  casodex bicalutamide is an antiandrogen therapy 
used to treat prostate cancer it is used as a 50mg 
tablet for advanced prostate cancer and as a 150mg 
tablet for locally advanced prostate cancer 
  faslodex fulvestrant is an injectable estrogen 
receptor antagonist used to treat hormone  
receptor positive metastatic breast cancer in 
postmenopausal women with disease progression 
following antiestrogen therapy
  iressa gefitinib is an epidermal growth factor 
receptor tyrosine kinase inhibitor egfrtki that acts 
to block signals for cancer cell growth and survival  
in egfr mutationpositive egfr m advanced 
nonsmall cell lung cancer nsclc
we have a deeprooted heritage in oncology which became our sixth 
growth platform in january 2015 our vision is to help patients by redefining 
the cancer treatment paradigm
 chemotherapy  251bn
 hormonal therapies  97bn
  m o n oc l o n al  
antibodies mabs 231bn
  sma l l m o l e c ul e  
tyrosine kinase  
inhibitors tkis  126bn
therapy area world market
matq314
705bn
annual worldwide market value
oncology
phase i phase ii phase iii lcm projects
small molecule large molecule combination molecules small molecule large molecule small molecule large molecule small molecule
azd3759  medi0639

  — medi4736

  —
 dabrafenib  trametinib 
azd4547 —
 
medi551

  — azd9291  ➔
egfrm t790m nsclc
medi4736
 
 ➔
pacific stage iii nsclc 
caprelsa  —
differentiated thyroid cancer 
azd5312

   medi3617

  —azd9291 
 medi4736

 tatton 
selumetinib

  —
2nd line krasnsclc
medi573

  — caprelsa  f ✓
medullary thyroid cancer 
medi4736

  
atlantic 3rd line nsclc 
faslodex —
falcon 1st line advanced 
breast cancer 
azd9150

  — medi4736

 
various cancers
medi4736

 
 azd9291 sequencing study 
azd2014 — medi4736
  

solid tumours 
lynparza  ✓ moxetumomab  —
pasudotox

 
hairy cell leukaemia
azd8186  — medi565

  — medi4736

 
 iressa 
azd1775

 — moxetumomab ➔ 
pasudotox

 
pall
lynparza  —
solo1 
tremelimumab  ➔
azd8835   medi6469

  — medi4736

  —
 tremelimumab 
lynparza   
prostate cancer 
lynparza  —
solo2 
azd6738  — medi0680  — medi4736

 
 medi0680 
azd5363

  ➔ lynparza  —
gold 
azd9496  medi6383

 
 
medi4736

 
 medi6469

 
azd6094
  
➔
volitinib 
lynparza  ➔
olympiad  
metastatic breast cancer 
medi551

 
 medi0680 
azd9291  
1st line egfrm nsclc
lynparza  
olympia  
adjuvant breast cancer
medi551

 
 rituximab 
selumetinib

  —
select1 
2nd line kras nsclc 
medi6469

 
 tremelimumab 
selumetinib

 
astra  
differentiated thyroid cancer
selumetinib

   
sumit  
uveal melanoma
  addition
 — no change
➔ progression
f new filing
✓ approvedlaunched
key 
  filed in japan in 2014 
already launched in the  
us and eu
 partnered product
41 astrazeneca annual report and form 20f information 2014
strategic report strategic report  therapy area review
oncology continued
in 2014 we strengthened our portfolio  
and accelerated clinical programmes 
through acquisitions and collaborations  
we acquired definiens a pioneer in  
imaging and data analysis technology that 
significantly improves the identification  
of biomarkers in tumour tissue using 
biomarkers to select patients for clinical  
trials may shorten clinical timelines increase 
response rates and help advance the most 
promising combination therapies in our 
pipeline for more information about this 
acquisition please see note 24 to the 
financial statements from page 170 
we also entered into numerous 
collaborations with biotechnology and 
diagnostic companies and scientific 
institutions to strengthen our research and 
technology capabilities achieve scientific 
leadership and deliver lifechanging 
medicines 
our 2014 focus
our marketed oncology products  
generated sales of more than 3 billion 
worldwide in 2014 and we continue to 
explore ways to maximise the benefit  
of our medicines for patients
iressa was the first egfrtki to be 
approved in advanced nsclc and is  
now approved in 90 countries iressa  
is the leading egfrtki for patients with 
advanced egfr m nsclc in europe  
and asia and is currently under review in  
the us in september 2014 iressa became  
the first egfrtki to include bloodbased 
diagnostic testing where a suitable tumour 
sample is not available in its european label 
the technology that uses circulating tumour 
dna obtained from a blood sample for the 
assessment of egfr mutation status will 
also be used to develop azd9291
faslodex 500mg is approved in more  
than 80 countries including the eu the  
us and japan we are currently exploring 
the efficacy and safety of faslodex 500mg 
compared with arimidex in the 1st line 
advanced breast cancer setting hormone
naïve patients in the phase iii falcon trial
lynparza is an oral parp inhibitor approved 
in the eu for the treatment of adult patients 
with platinumsensitive relapsed brca
mutated germline andor somatic 
highgrade serous epithelial ovarian 
fallopian tube or primary peritoneal cancer 
the ec granted marketing authorisation for 
lynparza in december 2014 it is the first 
  immunotherapy our ambition is to be  
a scientific leader in immunotherapy  
a promising therapeutic approach that 
harnesses the patient’s own immune 
system to help fight cancer we are 
working to understand how cancer 
evades the immune system and to identify 
approaches that enhance the immune 
system’s ability to fight cancer
  tumour drivers and resistance 
mechanisms potent inhibition of genetic 
disease drivers is a clinically validated 
approach to shrink tumours and improve 
progressionfree survival tumours 
however eventually develop resistance  
to these therapies our programmes  
seek to develop therapies that target the 
mutations that cause cancer cells to 
proliferate and resistance mechanisms 
  dna damage repair exploiting 
mechanisms that selectively damage 
tumour cell dna is another clinically 
validated approach to shrink tumours  
and improve progressionfree survival 
our programmes focus on identifying  
and exploiting vulnerabilities unique to 
tumour cells to kill the tumour cells  
while minimising toxicity to the patient
  antibodydrug conjugates the  
use of antibodydrug conjugates is a 
clinically validated highly potent approach 
that selectively targets cancer cells  
we seek to combine innovative antibody 
engineering capabilities with cytotoxic 
drug warheads to attack and kill  
the tumour while minimising toxicity  
to the patient 
we are also focused on identifying and 
developing combination therapies our 
immunooncology portfolio which we 
believe is one of the most comprehensive  
in our industry enables us to explore and 
exploit scientific and biological synergies  
to pursue combinations that improve 
outcomes and maximise patient benefit 
parp inhibitor to be approved for patients 
with platinumsensitive relapsed brca
mutated ovarian cancer 
lynparza was approved in the us in 
december 2014 for the treatment of adult 
patients with germline brcamutated 
advanced ovarian cancer who have been 
treated with three or more prior lines of 
chemotherapy it was approved under the 
fda’s accelerated approval programme 
based on existing objective response  
rate and duration of response data 
continued approval for this indication  
in the us is contingent upon verification  
of clinical benefit in ongoing confirmatory 
phase iii trials
in the pipeline 
our oncology pipeline strengthened 
significantly in 2014 with six nmes now in 
latestage development and another 20 
nmes in phases i and ii we also expanded 
several of our projects to incorporate novel 
combinations and various types of cancer
tumour drivers and resistance 
mechanisms
  azd9291 is a highly selective irreversible 
inhibitor of the activating sensitising egfr 
mutation and the resistance mutation 
t790m being investigated for nsclc  
in 2014 the fda granted azd9291 
breakthrough therapy designation 
orphan drug and fast track status the 
breakthrough designation will allow us to 
expedite the development of azd9291
  selumetinib a mek inhibitor is being 
investigated in differentiated thyroid 
cancer nsclc and krasmutated 
nsclc a registration trial in metastatic 
uveal melanoma has begun
  azd4547  a fibroblast growth factor 
receptor fgfr tki in phase ii 
development is being investigated for  
the treatment of bladder cancer
dna damage repair
  lynparza olaparib has commenced 
phase iii trials for adjuvant and metastatic 
brcamutated breast cancers 
brcamutated pancreatic cancer and  
in 2nd line gastric cancer
  azd1775 a wee1 inhibitor in phase ii 
development is being investigated in 
ovarian and lung cancers
82m
cancer is a leading cause of death 
worldwide and accounted for 82 million 
deaths in 2012 
source who factsheet february 2014 data from 2012 
42 astrazeneca annual report and form 20f information 2014   medi6469 a murine antiox40 mab is  
in phase i development for solid tumours 
as a monotherapy and in combination 
with medi4736
  medi6383 a human ox40 agonist is in 
phase i development for solid tumours
our collaborations
collaboration is key to accessing the  
best science and technology achieving 
scientific leadership and delivering 
innovative lifechanging medicines in 2014 
we entered into numerous collaborations 
with scientific and research institutions  
and biotechnology and diagnostic 
companies for example we entered  
into collaborations with
  cancer research uk’s commercial  
arm cancer research technology  
crt to establish a joint laboratory  
in cambridge uk and focus on the 
discovery and development of novel 
biologic cancer treatments 
  the babraham institute the cancer 
research uk cambridge institute and  
the university of cambridge department 
of oncology at addenbrooke’s hospital 
to evaluate pancreatic cancer therapies  
and identify drug combinations for our 
investigational compound selumetinib
  immunocore limited immunocore  
to research and develop novel cancer 
therapies using immunocore’s immune 
mobilising monoclonal tcell receptor 
against cancer technology that seeks  
to use the body’s immune system  
to find and kill diseased cells
  kyowa hakko kirin co ltd a japanese 
pharmaceutical and biotechnology 
company to evaluate the safety and 
efficacy of two combinations of three 
investigational compounds in solid 
tumours 
  the university of texas md anderson 
cancer center to evaluate several of our 
immunotherapy molecules in a clinical 
setting to better understand how these 
molecules elicit immune response 
  advaxis inc a usbased biotechnology 
company developing cancer 
immunotherapies to evaluate the safety 
and efficacy of medi4736 in combination 
with advaxis’s lead cancer 
immunotherapy vaccine adxshpv as a 
treatment for advanced recurrent or 
refractory human papillomavirus 
hpvassociated cervical cancer and 
hpvassociated head and neck cancer
  pharmacyclics inc and janssen 
research  development llc to 
evaluate the efficacy and safety of 
medi4736 in combination with ibrutinib 
an oral bruton’s tki codeveloped by 
pharmacyclics and janssen for patients 
with haematological cancers including 
diffuse large bcell lymphoma and 
follicular lymphoma
through our collaborations we have 
reaffirmed our commitment to redefine  
the cancer treatment paradigm reinforced 
our phc approach and accelerated the 
development of innovative medicines to 
bring value to patients and shareholders 
for more information on our phc strategy 
and collaborations please see research 
and development from page 52 
antibodydrug conjugates 
  moxetumomab pasudotox an anticd22 
immunoconjugate is being investigated  
in a phase iii study for adult patients  
with hairy cell leukaemia who have not 
responded to or relapsed after standard 
therapy
immunotherapies
  medi4736 an antiprogrammed 
deathligand 1 antipdl1 antibody 
demonstrated durable clinical activity  
and acceptable safety in a phase i study 
the results of this study coupled with  
the preclinical data and validation of  
the target supported the accelerated 
development of medi4736 into phase iii 
clinical trials the latestage clinical 
programme will evaluate the compound  
in nsclc and head and neck cancer  
as monotherapy and in combination 
  there are almost 30 immunooncology 
combination trials underway or planned 
of these medi4736 is being studied  
in 12 combination trials including in 
collaboration with incyte corporation  
in a phase iii study to evaluate efficacy 
and safety in combination with incyte 
corporation’s oral indoleamine 
dioxygenase1 inhibitor incb24360 
  tremelimumab an anticytotoxic 
tlymphocyte antigen antibody is being 
explored in a pivotal study for malignant 
mesothelioma
  medi0680 is an antipd1 monoclonal 
antibody mab that may help promote an 
effective antitumour immune response by 
blocking the interactions between pd1 
and its ligands and improve the intrinsic 
functionality of t cells by triggering 
internalisation of pd1 a mechanism that 
may be unique to medi0680 medi0680 
is in phase i development for solid 
tumours as a monotherapy and in 
combination with medi4736
60
more than 60 of the world’s total new 
annual cancer cases occur in africa asia 
and central and south america these 
regions account for 70 of the world’s 
cancer deaths 
source who factsheet february 2014 data from 2012 
14m
annual cancer cases are expected to rise from 
14 million in 2012 to an estimated 22 million within  
the next two decades 
source who factsheet february 2014 data from 2012 
43 astrazeneca annual report and form 20f information 2014
strategic report help people  
breathe easier
what science can do
biologics in the treatment 
of asthma 
 
we are working to improve asthma 
outcomes through the development of 
biologics eosinophils are thought to 
be responsible for inflammation and 
asthma attacks in some asthma 
patients we are developing a biologic 
that binds to a receptor on the surface 
of eosinophils and then recruits 
effector cells to remove eosinophils 
from circulation 
respiratory inflammation and autoimmunity
phase i phase ii phase iii lcm projects
small molecule large molecule small molecule large molecule small molecule large molecule small molecule
azd8999  — medi551

 — azd0548   azd9412

   lesinurad f
 
brodalumab

  —
psoriasis 
duaklir genuair  
azd1419

 — medi4920   azd2115

  — mavrilimumab

  — pt003 gff —
copd
brodalumab

  
psoriatic arthritis 
symbicort breath  — 
actuated inhaler  
asthmacopd
azd7594
¥
   medi5872

 — azd7624 ➔ anifrolumab

  — pt001 gp  
copd
benralizumab

  —
severe asthma 
symbicort sygma1  
pt010 ➔ medi7183

 — benralizumab

  
copd 
rdea3170  — medi9929

 ➔ tralokinumab  ➔
severe asthma 
sifalimumab

  —
tralokinumab  
ipf
medi2070

  —
brodalumab

  —
asthma
44 astrazeneca annual report and form 20f information 2014 strategic report  therapy area review
respiratory inflammation and autoimmunity
  symbicort pmdi budesonideformoterol in a 
pressurised metereddose inhaler is a combination 
of an inhaled corticosteroid and a fast onset 
longacting beta 2agonist used for maintenance 
treatment of asthma and copd including chronic 
bronchitis and emphysema in the us australia and 
some other markets
  symbicort turbuhaler budesonideformoterol  
in a dry powder inhaler is a combination of an 
inhaled corticosteroid and a fast onset longacting 
beta 2agonist used for the maintenance treatment  
of asthma and copd in asthma it is also approved 
for symbicort maintenance and reliever therapy 
symbicort smart symbicort turbuhaler is 
approved in many countries outside the us
1
  teva holds an exclusive licence to sell a generic version  
of pulmicort respules in the us
our strategic priorities 
respiratory is an important platform for our 
return to growth with an industryleading 
pipeline and the completion of the almirall 
transaction in november 2014 we believe 
we are well positioned to grow our portfolio 
of marketed products 
our goal is to establish a leading position  
in asthma and copd treatment and 
strengthen our position in idiopathic 
our marketed products
  accolate zafirlukast is an oral leukotriene receptor 
antagonist used for the treatment of asthma
  bricanyl turbuhaler terbutaline in a dry powder 
inhaler is a shortacting beta 2agonist used for the 
acute treatment of bronchialobstructive symptoms 
in asthma and copd
  duaklir genuair aclidiniumformoterol is a  
dual bronchodilator lamalaba intended for 
maintenance symptom control in copd patients  
and is the only lamalaba with strong evidence  
of effect on early morning day and nighttime 
symptoms 
  eklira genuairtudorzabretaris aclidinium  
a lama is a 1st line treatment for symptomatic  
mild to moderate copd patients in need of 
maintenance therapy 
  oxis turbuhaler formoterol in a dry powder inhaler 
is a fast onset longacting beta 2agonist used for  
the treatment of bronchialobstructive symptoms  
in asthma and copd
  pulmicort turbuhalerpulmicort flexhaler 
budesonide in a dry powder inhaler is an inhaled 
corticosteroid used for maintenance treatment  
of asthma 
  pulmicort respules
1
 budesonide inhalation 
suspension is a corticosteroid administered via  
a nebuliser for the treatment of asthma in both 
children and adults
  rhinocort budesonide is a nasal steroid used as  
a treatment for allergic rhinitis hay fever perennial 
rhinitis and nasal polyps
pulmonary fibrosis ipf by delivering a 
range of differentiated inhaled therapies 
including novel combinations and devices
in the inflammation and autoimmunity ia 
therapy area we aim to develop innovative 
first and bestinclass therapies and by 
2020 obtain approvals for six new therapies
asthma and copd 
asthma is a common and chronic condition 
that affects the lung’s airways inflammation 
and narrowing of the airways may cause 
wheezing breathlessness chest tightness 
and coughing and asthma is a major cause 
of chronic morbidity the prevalence of 
asthma has increased over the last 20 years 
and asthma that is not well controlled by 
existing treatments remains a significant 
unmet medical need
we have made significant progress across the pipeline we are leveraging 
biologics in severe asthma and copd and developing several promising assets 
in inflammatory and autoimmune disease areas 
1028bn
annual worldwide market value
respiratory
 asthma 221bn
  chr on i c ob s t r uct i v e 
pulmonary disease  
copd  164bn
 idiopathic pulmonary  
 fibrosis ipf 02bn
 other 248bn
inflammation and autoimmunity
1
 gout  08bn
 psoriasis  52bn
 psoriatic arthritis  25bn
  rheumatoid  
arthritis  200bn
  systemic lupus  
erythematosus sle  06bn
  other  102bn  
therapy area world market
matq32014
respiratory inflammation and autoimmunity
phase i phase ii phase iii lcm projects
small molecule large molecule small molecule large molecule small molecule large molecule small molecule
azd8999  — medi551

 — azd0548   azd9412

   lesinurad f
 
brodalumab

  —
psoriasis 
duaklir genuair  
azd1419

 — medi4920   azd2115

  — mavrilimumab

  — pt003 gff —
copd
brodalumab

  
psoriatic arthritis 
symbicort breath  — 
actuated inhaler  
asthmacopd
azd7594
¥
   medi5872

 — azd7624 ➔ anifrolumab

  — pt001 gp  
copd
benralizumab

  —
severe asthma 
symbicort sygma1  
pt010 ➔ medi7183

 — benralizumab

  
copd 
rdea3170  — medi9929

 ➔ tralokinumab  ➔
severe asthma 
sifalimumab

  —
tralokinumab  
ipf
medi2070

  —
brodalumab

  —
asthma
  addition
 — no change
➔ progression
f new filing
✓ approvedlaunched
key 
 partnered product
‡  progression within phase ii 
in 2013
¥  project added back into 
pipeline in 2014
1
 data corrected from 2013
45 astrazeneca annual report and form 20f information 2014
strategic report strategic report  therapy area review
pulmicort is a leading ics therapy for 
asthma it is available for oral inhalation as 
pulmicort turbuhalerpulmicort flexhaler 
and as a nebuliser suspension for children 
or where a pressurised inhaler or dry 
powder formulation is inappropriate as 
pulmicort respules teva has had an 
exclusive licence to sell a generic version of 
pulmicort respules in the us since 2009 
pulmicort respules continues to face 
challenges from generic products more 
information about litigation relating to 
pulmicort respules can be found in note 27 
to the financial statements from page 182
through our acquisition of pearl 
therapeutics in 2013 we obtained a phase 
iib lamalaba combination pt003 and 
technology that may help develop our 
phase ii triple fdc pt010 in one device 
through our strategic transaction with 
almirall in november 2014 we acquired 
rights to the onmarket product eklira 
genuair a lama and to duaklir genuair a 
combination of aclidinium bromide a lama 
and formoterol fumarate a laba which 
was approved in the eu in november 2014 
we also acquired almirall sofotech gmbh 
an almirall subsidiary focused on the 
development of innovative inhalation 
devices for more information regarding the 
strategic transaction with almirall please 
see note 24 to the financial statements 
from page 170 in february 2015 we 
announced an agreement with actavis  
to acquire the rights to actavis’s branded 
respiratory business in the us and canada 
including the rights to develop and 
commercialise onmarket products tudorza 
pressair and daliresp for copd we will also 
acquire development rights in the us and 
canada for the combination of a fixed dose 
of aclidinium with formoterol in dry powder 
inhaler approved in the eu as duaklir 
genuair
1
 these transactions have 
strengthened our pipeline portfolio and 
device capabilities and will help deliver  
new therapies to patients 
1  
transaction subject to competition law clearances as well  
as other customary terms and conditions
in the pipeline 
we are developing pt003 as a twice daily 
fdc of two components already approved 
and marketed in various formulations in 
many countries – the lama glycopyrronium 
and laba formoterol a component of 
symbicort it is the only lamalaba being 
developed in a pressurised metereddose 
inhaler pmdi phase iii results for pt003 are 
expected in 2015 we are also developing 
pt010 as a twice daily triple combination 
currently fdcs of an inhaled corticosteroid 
ics with a longacting beta 2agonist 
laba for example symbicort help treat 
moderate to severe asthma our focus is on 
developing targeted therapies for specific 
patient groups including more severe 
refractory patients who experience severe  
or frequent exacerbations and a reduced 
quality of life we are also focused on better 
understanding patient subtypes to tailor 
therapies to various phenotypes and are 
exploring the use of symbicort dosed ‘as 
needed’ in mild asthma patients
copd is a progressive and chronic disease 
that includes various lung conditions 
including chronic bronchitis emphysema 
and chronic obstructive airways disease 
medication has only a small impact on the 
course of the disease and the prognosis  
for patients remains poor
copd treatments aim to slow disease 
progression and control symptoms 
deterioration of lung function over time 
usually requires more aggressive treatment 
including the use of additional treatments to 
manage symptoms a class of fdcs of a 
longacting muscarinic antagonist lama 
and a longacting beta 2agonist laba 
known as lamalabas is being 
developed and likely to be a 1st line therapy 
for symptomatic mild to moderate copd 
patients who need bronchodilatation and 
are at lower risk of exacerbations
our 2014 focus in respiratory
our symbicort products improve the health 
of copd and asthma patients by providing 
rapid relief of symptoms and longterm 
antiinflammatory control we continue to 
invest in this brand and are exploring a new 
indication in mild asthma through the sygma 
trial programme enhancing our inhaled 
devices and patient support programmes 
and seeking to expand our copd indications 
in 2014 two symbicort analogues were 
approved in europe these analogues 
contain the same apis as symbicort 
turbuhaler but differ in terms of device 
approved countries dosing regimen age 
range and strengths while these analogues 
attained only a small share of the european 
market by the end of 2014 we expect them 
to gain a larger market share in 2015 and 
adversely affect symbicort turbuhaler sales 
for more information on the impact of 
analogues please see patent expiries  
and genericisation in marketplace on  
page 17 and the geographical review  
from page 220
lamalabaics composed of 
glycopyrronium formoterol and budesonide 
a key component of symbicort in a pmdi 
device for severe copd it is currently in 
phase ii and may be one of the first products 
to deliver the three therapeutic entities  
via one inhaler
we are also developing benralizumab 
which depletes eosinophils in the blood  
and airways via a unique mechanism of 
action unlike approaches that target the 
interleukin5 il 5 cytokine itself il 5 
promotes the accumulation and activation  
of eosinophils benralizumab binds to the 
alpha subunit of the il 5 receptor on 
eosinophils triggering rapid and efficient cell 
death through a process known as antibody 
dependent cellmediated cytotoxicity in 
2014 we reported that the primary endpoint 
of the phase ii study in copd had not been 
met however based on the identification of 
a subpopulation of patients with elevated 
blood eosinophils in which a benefit was 
indicated we advanced benralizumab into 
phase iii in copd the phase iii programme 
includes two phase iiipivotal phase ii 
studies which assess benralizumab in 
patients with moderate to very severe copd 
with high exacerbation risk phase iii trials 
for severe asthma are also underway 
tralokinumab is an investigational mab  
that binds to il 13 phase ii data from 
tralokinumab suggest that il 13 
neutralisation can improve lung function  
and reduce asthma exacerbation rate in  
a subpopulation of moderate to severe 
asthma patients who are uncontrolled  
with standard of care therapy in august 
2014 we initiated a phase iii programme  
to evaluate the safety and efficacy of 
tralokinumab in reducing asthma 
exacerbations in adults and adolescents 
with severe inadequately controlled asthma
other therapies in development include
  medi9929 a firstinclass phase iib  
mab being developed with amgen for 
uncontrolled severe asthma medi9929 
binds to thymic stromal lymphopoietin 
tslp an upstream mediator of th2 
cytokineinduced inflammation and has 
the potential to treat nonth2mediated 
asthma decrease the th2th1 ratio in 
patients with mild to moderate asthma 
and reprogramme the allergic phenotype 
respiratory inflammation and autoimmunity continued
46 astrazeneca annual report and form 20f information 2014 235m
approximately 235 million people suffer 
from asthma prevalence is increasing 
especially among children approximately 
300 million people suffer from copd
  source who factsheet 2013
medical need remains most emerging 
biologics are likely to be used in combination 
with standard therapies including 
corticosteroids and immunosuppressants
rheumatoid arthritis is currently treated with 
generic diseasemodifying antirheumatic 
agents and where appropriate biologics 
novel treatments are needed however as 
only about a third of patients treated with 
biologics achieve their treatment goals 
although tumour necrosis factor tnf 
alphablockers are currently the primary 
treatment for rheumatoid arthritis use of 
other biologic approaches is expected  
to increase novel oral drugs targeting 
intracellular signalling pathways may 
provide antitnflike levels of efficacy  
and potentially more convenient dosing 
especially in patients who do not use 
injectable biologics
in the pipeline 
in 2014 we focused on strengthening our 
pipeline and improving treatment options 
and clinical outcomes for patients with ia 
disorders completion of two phase iib trials 
sifalimumab and mavrilimumab and two 
phase iii trials brodalumab and lesinurad 
along with the initiation of various phase ii 
trials demonstrates the success of our rd 
efforts to deliver new medicines quickly
in august 2014 we announced positive 
results from the main phase iii trials in gout 
patients for lesinurad a selective uric acid 
reabsorption inhibitor suri that inhibits  
the urat1 transporter increasing uric acid 
excretion and thereby lowering serum  
uric acid sua these trials investigated 
lesinurad in combination with allopurinol  
in gout patients not reaching target sua 
levels on allopurinol alone clear1 and 
clear2 and as a combination therapy 
with febuxostat in patients with tophaceous 
gout crystal lesinurad’s mechanism  
of action provides an opportunity to 
fundamentally change the way gout is 
treated through a combination therapy 
approach with the current standard of care 
xanthine oxidase inhibitors results of the 
clear1clear2 studies were presented 
at the american college of rheumatology 
annual meeting in november 2014 and 
regulatory filings were submitted in the us 
and eu in december 2014 in january 2015 
the ema accepted the maa for lesinurad 
200mg tablets for review we expect to 
present full results of crystal at a 
scientific meeting in 2015
rdea3170 is a suri and our leading gout 
molecule in asia where we have begun work 
to support its submission as a monotherapy 
in preclinical and phase i clinical studies 
rdea3170 showed attributes similar to those 
of lesinurad but with significantly greater 
potency against the urat1 transporter  
it is being investigated as a potentially 
differentiated molecule that could be used 
earlier in the treatment of gout and 
asymptomatic hyperuricaemia phase i 
studies in japan are complete and in early 
2014 we initiated a phase ii monotherapy 
study rdea3170 will also be studied  
globally as a chronic treatment for gout in 
combination with a xanthine oxidase inhibitor 
phase ii studies are underway in asia and the 
us to assess safety and efficacy
in november 2014 we and amgen 
announced phase iii results for brodalumab 
in moderate to severe psoriasis brodalumab 
is a human mab that targets the 
interleukin17 il 17 receptor to treat 
moderate to severe psoriasis the phase iii 
programme included three studies evaluating 
treatment with brodalumab two of which 
compared brodalumab with ustekinumab 
andor placebo results from all three clinical 
trials showed that all primary and secondary 
endpoints were met with brodalumab 
showing superiority to ustekinumab in both 
comparative studies global regulatory filings 
are expected in 2015 brodalumab is also 
being investigated in phase iii studies for 
psoriatic arthritis and is in phase ii for 
asthma brodalumab is one of five mabs  
that astrazeneca and amgen have agreed 
to jointly develop and commercialise 
we also invested in several novel 
multifunctional mabs in ia conditions 
sifalimumab which is being investigated for 
moderate to severe sle met the primary 
endpoint for reducing sle disease activity 
and demonstrated improvements in skin 
joints and patientreported outcomes in  
a phase ii study completed in may 2014 
anifrolumab which targets the type i 
interferon receptor also continued 
development with a phase iib study in sle 
patients mavrilimumab an investigational 
mab that inhibits a key pathway in the 
development of rheumatoid arthritis 
achieved its primary endpoints in a phase 
iib study results which were announced  
in may 2014 showed that mavrilimumab 
improved signs and symptoms of 
rheumatoid arthritis measures of disability 
and patientreported outcomes
  brodalumab an antiil 17ra mab being 
developed with amgen for psoriasis and 
psoriatic arthritis and in phase iib for 
uncontrolled moderate to severe asthma 
with a high degree of airway reversibility 
  azd7624 an inhaled p38 inhibitor in 
phase iia development for copd
  azd1419 an inhaled oligonucleotide 
tlr9 agonist has completed phase i  
for mild asthma and in 2015 will move  
to a phase iia safety and efficacy trial in 
asthma patients
inflammation and autoimmunity
gout is the most common form of 
inflammatory arthritis it occurs when high 
levels of uric acid in the blood known as 
hyperuricaemia lead to the deposition of 
needlelike crystals in joints and soft tissues 
throughout the body causing inflammation 
hyperuricaemia results when the kidneys  
do not efficiently remove enough uric acid 
or when the body produces too much in 
2013 there were an estimated 153 million 
diagnosed cases of gout in major markets 
this number is expected to rise to 
17 7 million cases in 2021 
psoriasis is a chronic disease in which the 
immune system causes skin cells to grow 
rapidly instead of being shed the skin cells 
pile up causing painful and itchy red scaly 
patches that can bleed approximately 
125 million people worldwide suffer from 
psoriasis despite treatment options for 
moderate to severe plaque psoriasis many 
patients do not experience a resolution  
of underlying inflammation clearing of 
symptoms or an improved quality of life 
current treatment of systemic lupus 
erythematosus sle focuses on suppressing 
symptoms and controlling disease flares and 
in the case of lupus nephritis preventing renal 
failure although a biologic medicine was 
launched for sle in 201 1 most therapies 
used are offlabel and significant unmet 
47 astrazeneca annual report and form 20f information 2014
strategic report strategic report  therapy area review
infection neuroscience and gastrointestinal
infection
our marketed products
  synagis
1
 palivizumab is a humanised mab 
used to prevent serious lower respiratory tract 
disease caused by rsv in paediatric patients at 
high risk of acquiring rsv disease
  cubicin
2
 daptomycin is a cyclic lipopeptide 
antibacterial used to treat serious infections in 
hospitalised patients
  merremmeronem
3
 meropenem is a 
carbapenem antibacterial used to treat serious 
infections in hospitalised patients
  zinforo
4
 ceftaroline fosamil is a novel injectable 
cephalosporin used in communityacquired 
pneumonia and complicated skin and soft tissue 
infections
  flumistfluenz influenza vaccine live 
intranasal is an intranasal live attenuated 
trivalent influenza vaccine
  flumist quadrivalentfluenz tetra  
influenza vaccine live intranasal is an 
intranasal live attenuated quadrivalent 
influenza vaccine
1
  us rights only abbvie holds rights to synagis  
outside the us
2
 licensed from cubist pharmaceuticals inc
3
  licensed from dainippon sumitomo pharmaceuticals co 
limited
4
  licensed from forest astrazeneca holds global rights 
excluding the us canada and japan 
we have a long history in the fields of 
infection neuroscience and gastrointestinal 
ing diseases which represent a significant 
area of unmet medical need for patients 
around the world we group these fields  
into one therapy area to help support 
existing medicines develop and 
commercialise new therapies prioritise 
resources enable effective and efficient 
investment and maximise value for patients 
and shareholders 
our strategic priorities
our focus in infection is on respiratory 
viruses and serious bacterial infections  
our differentiated and leading onmarket 
portfolio and pipeline experienced 
significant activity in 2014
influenza virus
clinical data from flumistfluenz has 
demonstrated superiority to traditional 
inactivated influenza vaccines in children 
this has led governments in the uk and 
elsewhere to recommend the use of 
flumistfluenz in children in 2014 the us 
centers for disease control and prevention 
advisory committee on immunization 
practices recommended the use of flumist
fluenz for healthy children of two to eight 
years of age with no contraindications or 
precautions we are engaging in 
discussions with other governments to help 
protect children against influenza the most 
common vaccinepreventable disease in  
the developed world
respiratory syncytial virus
since its approval in 1998 synagis has 
helped protect more than 28 million babies 
globally against respiratory syncytial virus 
rsv rsv affects approximately half of all 
infants worldwide in their first year of life  
and is the leading cause of hospitalisations 
and admissions to paediatric intensive care  
units synagis is approved in more than 80 
countries and is the global standard of care 
for rsv prevention we continue to work 
with our worldwide partner abbvie to 
protect additional vulnerable infants in july 
2014 the american academy of pediatrics 
committee on infectious disease issued 
guidelines restricting patients eligible for 
preventive therapy with synagis while these 
guideline changes are inconsistent with  
our approved label they may significantly 
adversely affect synagis sales in the us 
we strengthened our leadership position in 
rsv in 2014 with the initiation of phase i 
studies for medi8897  a mab that requires 
dosing only once per rsv season – a 
potential breakthrough in rsv prophylaxis
our opportunitydriven strategy seeks to maximise the value of our pipeline and 
portfolio through focused rd licensing and collaboration in 2014 we progressed 
various assets in development obtained approval for movantikmoventig in the us  
and eu and entered into an alliance with lilly for our bace inhibitor azd3293  
as a potential treatment for alzheimer’s disease 
infection neuroscience and gastrointestinal
phase i phase ii phase iii lcm projects
small molecule large molecule small molecule large molecule small molecule small molecule
atm avi

 — medi550  — azd0914 ➔ medi4893 ➔ caz avi

 — 
serious infection
entocort  —
azd8108   medi559 —
paediatric rsv
azd5847 — caz avi

 —
hapvap
linaclotide

  —
medi3902  cxl

 — zinforo

 — nexium ✓
paediatrics
medi7510   azd3241 — movantikmoventig

 
approved but not launched
nexium  
refractory reflux esophagitis
medi8897

   azd3293

 ➔ nexium  
stress ulcer prophylaxis
medi1814   azd5213 —
tourette’s syndrome
neuropathic pain 
diprivan

  f ✓
48 astrazeneca annual report and form 20f information 2014 in addition to caz avi we are developing 
other innovative antibacterial compounds 
including
  aztreonam avibactam atm avi a  
phase i compound being developed 
jointly with forest to target gramnegative 
bacteria with a metallobetalactamase 
resistance mechanism this bacteria  
is endemic in india and spreading 
throughout the world
  medi4893 a phase ii compound that 
received fast track designation from the 
fda in october 2014 medi4893 is an 
innovative antibody directed against 
staphylococcus aureus a major cause  
of negative clinical and activity outcomes 
in hospitals
  medi3902 a phase i compound that 
received fast track designation from the 
fda in september 2014 medi3902 is an 
antibody directed against pseudomonas 
aeruginosa a dangerous and resistant 
gramnegative bacterium
 
neuroscience
our marketed products
 seroquel ir an immediate release formulation 
of quetiapine fumarate is an atypical anti
psychotic 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 major 
depressive disorder and on a more limited basis 
for generalised anxiety disorder 
 diprivan propofol is an intravenous general 
anaesthetic used to induce and maintain general 
anaesthesia intensive care sedation and 
conscious sedation for surgical and diagnostic 
procedures
 emla lidocaine and prilocaine is a local 
anaesthetic for topical application cream and 
patch to prevent pain associated with injections 
and minor surgical procedures and to facilitate 
cleansingdebridement of leg ulcers
 naropin ropivacaine is a longacting local 
anaesthetic for surgical anaesthesia and acute 
pain management 
 vimovo
1
 naproxenesomeprazole magnesium 
is generally approved for symptomatic relief in the 
treatment of rheumatoid arthritis osteoarthritis 
and ankylosing spondylitis in patients at risk of 
developing nsaidassociated gastric andor 
duodenal ulcers 
 xylocaine lidocaine is a shortacting local 
anaesthetic for topical and regional anaesthesia
 zomig zolmitriptan is used for the acute 
treatment of migraine plus for the acute 
treatment of cluster headache in the eu zomig  
is available in three formulations oral tablet  
orally dispersible tablet and nasal spray
1
  licensed from pozen divested us rights to horizon 
pharma usa inc effective 22 november 2013 
our strategic priorities
we have a long history in anaesthesia  
and analgesia and a sizeable business  
in psychiatry rooted in seroquel ir and 
seroquel xr the substance patent 
protecting the active ingredient in seroquel 
ir and seroquel xr quetiapine expired 
worldwide in 2012 however in most 
european countries the formulation patent 
covering seroquel xr does not expire until 
2017  as such seroquel xr remains a  
key product and we are committed to 
vigorously defending the patent protecting 
seroquel xr the patent however has 
been subject to various challenges and 
revocations details of litigation relating  
to seroquel xr are included in note 27  
to the financial statements from page 182 
in neuroscience we are focused on 
developing new medicines primarily for 
alzheimer’s and parkinson’s diseases  
and pain control in september 2014 we 
entered into an important agreement with 
lilly to jointly develop and commercialise  
a potential treatment for alzheimer’s  
also in 2014 we secured approval for 
movantik naloxegol in the us and  
moventig in the eu for the treatment  
of opioidinduced constipation 
movantikmoventig approval
movantikmoventig which was approved  
in the us in september 2014 and in the  
eu in december 2014 is the first orally 
administered once daily peripherallyacting 
muopioid receptor antagonist pamora  
to be approved for the treatment of opioid 
induced constipation oic in adult patients 
who have had an inadequate response to 
laxatives oic is the most common side 
effect of chronic use of opioid pain 
medicines which are taken by over 
69 million people worldwide and affects 
nearly 90 of opioid patients of these 
patients only 40 to 50 achieve desired 
treatment outcomes with current options 
such as otc and prescription laxatives 
which treat general constipation symptoms 
movantikmoventig acts directly on the 
muopioid receptors in the gut which cause 
oic when opioids are used and constitutes 
an important and novel option for opioid 
users movantikmoventig was developed 
using nektar therapeutics’ oral small 
molecule polymer conjugate technology  
as part of a 2009 licence agreement with 
nektar therapeutics 
serious bacterial infections
governments increasingly recognise 
antibiotic or antimicrobial resistance as  
a key health concern we have a broad  
and innovative portfolio of medicines for 
serious grampositive and gramnegative 
bacterial infections and are working to 
develop additional medicines to fight these 
infections these infections are difficult  
to treat and drive dangerous evolutions  
of resistance
some of our 2014 developments include 
  positive results from a phase iii 
comparator trial which demonstrated  
a favourable efficacy for zinforo 600mg 
twice daily compared with ceftriaxone  
2g once daily in communityacquired 
pneumonia patients in asia 
  the launch of zinforo in eight countries 
including argentina brazil and spain 
  positive phase iii results for our 
ceftazidime avibactam caz avi 
programme caz avi is an innovative 
combination of ceftazidime and 
avibactam being developed jointly with 
forest to treat various gramnegative 
bacterial infections that are becoming 
antibioticresistant eu filing is expected  
in the first quarter of 2015 we hold the 
global rights to commercialise caz avi 
with the exception of north america 
where forest holds the rights 
  the award of fast track and qualified 
infectious disease product designation  
by the fda for azd0914 a novel phase ii 
oral antibiotic being developed to treat 
uncomplicated gonorrhoea azd0914  
is the first of a novel class of molecules 
being developed for this condition which 
is becoming increasingly difficult to treat 
due to antibiotic resistance
 addition
— no change
➔ progression
f new filing
✓ approvedlaunched
key
  filed in japan in 2014 
already launched in eu 
and china 
 partnered product
infection neuroscience and gastrointestinal
phase i phase ii phase iii lcm projects
small molecule large molecule small molecule large molecule small molecule small molecule
atm avi

 — medi550  — azd0914 ➔ medi4893 ➔ caz avi

 — 
serious infection
entocort  —
azd8108   medi559 —
paediatric rsv
azd5847 — caz avi

 —
hapvap
linaclotide

  —
medi3902  cxl

 — zinforo

 — nexium ✓
paediatrics
medi7510   azd3241 — movantikmoventig

 
approved but not launched
nexium  
refractory reflux esophagitis
medi8897

   azd3293

 ➔ nexium  
stress ulcer prophylaxis
medi1814   azd5213 —
tourette’s syndrome
neuropathic pain 
diprivan

  f ✓
49 astrazeneca annual report and form 20f information 2014
strategic report strategic report  therapy area review
infection neuroscience and gastrointestinal continued
pain control
our anaesthesia portfolio consists  
of various compounds including an 
intravenous general anaestheticsedative 
and local anaesthetics available in different 
formulations including injectables creams 
gels sprays and suppositories although 
these compounds were developed 20 to 65 
years ago and most no longer benefit from 
patent protection they are important 
medicines for patients 
biologics are an emerging treatment  
for pain control and we are exploring 
treatments in focused pain areas where 
patients can be selected based on 
symptomatic characteristics we are 
currently developing azd5213 a phase ii 
histamine3 receptor antagonist for 
neuropathic pain 
gastrointestinal
our marketed products
 entocort budesonide is a locallyacting 
corticosteroid used to treat inflammatory  
bowel disease
 losecprilosec omeprazole is used  
for the short and longterm treatment of 
acidrelated diseases
 nexium esomeprazole magnesium  
is a proton pump inhibitor used to treat  
acidrelated diseases
our strategic priorities
nexium remains one of the most used 
therapies in the world and in 2014 its  
use grew in some markets such as china  
and japan demand for nexium in china  
is expected to grow significantly and will 
complement its position in japan as the 
topselling medicine in its class
nexium is generally subject to generic 
competition in europe in the us we 
expected the first generic entry in 2014 but 
that did not occur in january 2015 teva 
received approval from the fda to market  
a generic version of nexium as such we 
now expect generic entry in 2015 and a 
decline in us nexium sales in 2015 nexium 
is also subject to generic competition in 
australia where the first generic entry 
occurred in august 2014 patents protecting 
nexium have been subject to a number  
bace partnership
in september 2014 we signed an 
agreement with lilly for the joint 
development and commercialisation of 
azd3293 our oral beta secretase cleaving 
enzyme bace inhibitor being developed  
as a potential treatment for alzheimer’s 
disease pursuant to the agreement we  
are eligible to receive up to 500 million  
in development and regulatory milestone 
payments from lilly lilly will lead clinical 
development which allows us to leverage 
lilly’s alzheimer’s expertise and focus on 
developing other therapies while we will be 
responsible for manufacturing astrazeneca 
and lilly will share the commercialisation 
activities enrolment into amaranth a 
large phase iiiii study that aims to enrol 
more than 1500 patients in 15 countries 
began in december 2014 
neurology 
alzheimer’s disease remains one of the 
largest areas of unmet medical need and 
continues to generate significant social  
and scientific interest to address this need  
we continued to develop medi1814 which 
entered a phase i trial in february 2014  
we also entered into multiple collaborations 
with academic and scientific institutions to 
advance disease understanding and identify 
potential new medicines for example  
we entered into collaborations with the 
university of cambridge focusing on 
advancing research and development in 
neurodegenerative diseases the karolinska 
institutet sweden the banner alzheimer’s 
institute us the national institute of 
radiological sciences japan vanderbilt 
university us focusing on psychosis  
and other neuropsychiatric symptoms 
associated with major brain diseases such 
as alzheimer’s disease and schizophrenia 
an alliance of several academic centres 
known as ‘a5’ and tufts university us 
focusing on brain diseases and disorders 
including alzheimer’s disease parkinson’s 
disease and autism spectrum disorders 
we also joined the medical research 
council dementias platform uk dpuk a 
large publicprivate partnership to accelerate 
and share dementias research through this 
partnership we will gain access to dpuk’s 
unique and rich dementia data and be able 
to collaborate with academic and industry 
researchers in addition we are developing 
azd3241 a myeloperoxidase inhibitor to 
potentially delay progression of disability  
in patients with multiple system atrophy 
of challenges in different jurisdictions  
details of these matters are included in  
note 27 to the financial statements from 
page 182
pfizer acquired the exclusive global rights  
to market nexium for otc indications 
worldwide in 2012 and launched otc 
nexium 20mg in the us and europe  
in 2014
50 astrazeneca annual report and form 20f information 2014 case study
brilintabrilique parthenon programme 
parthenon is the overarching clinical trial 
programme for the ticagrelor brilintabrilique 
lifecycle management programme it is 
astrazeneca’s largest ever cv outcomes 
programme involving nearly 80000 patients at  
high risk of cv events mi stroke andor cv death 
due to their underlying disease parthenon aims 
to enhance the scientific understanding of the role of 
brilintabrilique in the treatment of atherothrombotic 
conditions it includes five key studies covering broad 
patient populations across varying timescales and 
aims to support four new indications for brilinta
brilique over the next four years
plato was the first study in the 
programme and involved patients 
with acs the plato study 
demonstrated that brilintabrilique 
90mg reduced the rate of a 
combined endpoint of cv death mi 
or stroke compared to clopidogrel in 
patients with acs the plato study 
is the basis on which brilintabrilique 
has been approved in over 100 
countries and included in 13 major 
acs treatment guidelines globally 
 cv cardiovascular 
acs acute coronary syndrome 
asa acetylsalicylic acid  
mace major adverse cardiovascular 
endpoint cv death nonfatal stroke or 
nonfatal mi 
mi myocardial infarction 
pad peripheral artery disease 
tia transient ischaemic attack 
euclid is investigating the role of 
brilintabrilique in the reduction of 
cv events in patients with pad 
13500 patients 
with established pad 
enrolment initiated in 2013
time to first occurrence of   
mace up to 37 months 
ticagrelor vs clopidogrel  
recruitment ongoing  
themis will evaluate the efficacy 
of longterm treatment with 
brilintabrilique for the primary 
prevention of major cv events  
in patients with type 2 diabetes 
mellitus and coronary 
atherosclerosis
17000 patients  
with type 2 diabetes  
mellitus and coronary 
atherosclerosis without  
a history of previous mi  
or stroke  
enrolment initiated in 2014
any mace  
up to 35 months
ticagrelor vs placebo  
recruitment ongoing  
socrates is examining brilinta
brilique in patients who have 
experienced an acute ischaemic 
stroke or tia 
9600 patients 
ischaemic stroke or tia
any mace  
up to 90 days
ticagrelor vs asa  
recruitment ongoing  
key
study population
primary efficacy endpoint 
study comparator
study status
18624 patients  
with acs
any mace  
first 12 months
ticagrelor vs clopidogrel  
completed march 2009 
pegasustimi 54 was the second 
study in the programme to report 
results and involved patients who had 
experienced a heart attack one to 
three years prior to study enrolment 
topline results from the pegasus
timi 54 study which were announced 
in january 2015 demonstrated that 
brilintabrilique at both 60mg and 
90mg doses demonstrated a 
statistically significant reduction in 
major cv thrombotic events in 
patients with a history of heart attack 
complete results from the study will 
be presented in 2015 
21412 patients   
with prior acs enrolled  
1 to 3 years after mi
any mace   
12 to 44 months
ticagrelor vs placebo  
on a background of asa
completed december 2014 
51 astrazeneca annual report and form 20f information 2014
strategic report strategic report  business review
research and development
through focused investment in key 
programmes targeted business 
development and leveraging our 
distinctive capabilities we are pushing 
the boundaries of science to create 
innovative medicines that save lives and 
transform the treatment of disease
overview
  rd comprises two biotech units for 
discovery research and earlystage 
development and a latestage 
development unit
  focused on scienceled innovation 
across biologics small molecules 
immunotherapies protein engineering 
and devices 
  strengthened our pipeline portfolio and 
capabilities in 2014 through focused 
investment and business development
  simplified programmes processes and 
systems while prioritising resources 
towards latestage development
  entered into multiple collaborations with 
biomarker and diagnostic companies to 
support phc and our drug 
development programmes
  promoted open innovation and 
collaboration by colocating to strategic 
rd centres and collaborating with 
leading research organisations
  strengthened our reputation by actively 
participating in medical and scientific 
conferences and journals
  committed to working responsibly and 
in accordance with our global bioethics 
standards
achieve scientific leadership 
as outlined in strategic priorities from page 
18 achieving scientific leadership is critical  
to our success
during 2014 we
  redeployed rd spend towards 
latestage development
  secured 12 regulatory approvals for 
nmes and lcm projects across our 
therapy areas 
  accelerated and simplified what we 
consider our best programmes including 
expanding our immunemediated cancer 
therapy imtc research activities
  entered into multiple collaborations to 
access novel science and technology
achieving scientific leadership requires 
access to the best science whether internal 
or external through our biotechstyle 
operating model with two biotech units  
for discovery research and earlystage 
development and a latestage development 
unit we are able to access the best 
scientific research our productivity and 
pipeline are benefiting from investments in 
key capabilities such as payer partnering 
phc predictive science and clinical trial 
design and we have made good progress 
in colocating our teams to our strategic 
rd centres the moves to gaithersburg 
maryland us are nearly complete and the 
moves to cambridge uk have begun 
to focus resources on our key rd 
programmes leverage the expertise and 
capabilities of other organisations reduce 
spend and generate revenue we have 
engaged in select outlicensing and 
divestment opportunities our alliance with 
lilly to codevelop azd3293 a potential 
treatment for alzheimer’s disease and our 
divestment of myalept and our us rights to 
zestril and tenormin are key examples 
 for more information about these 
transactions please see therapy area review 
from page 32
research and earlystage development 
our two biotech units conduct innovative 
discovery research and earlystage 
development from initial target selection  
to phase ii trial completion medimmune 
focuses on biologics research while imed 
focuses on scientific advances in small 
molecules both units comprise specialist 
disease arealed innovative medicines 
sections and are responsible for delivering 
projects to our global medicines 
development gmd unit for latestage 
development during 2014 imed and 
medimmune delivered five biologic 
programmes and two small molecule 
programmes from earlystage development 
to gmd the work of our biotech units is 
guided by the 5r framework which is 
comprised of five factors the right target 
patient tissue safety and commercial 
potential and aims to progress the right 
projects focus resources and ultimately 
improve productivity 
 for an analysis of our rd spend please 
see infrastructure on page 69
52 astrazeneca annual report and form 20f information 2014 70
in 2014 we applied our phc strategy  
to approximately 70 of our pipeline
  ventana medical systems inc to develop 
a pdl1 immunohistochemistry assay to 
identify appropriate patients for enrolment 
in clinical trials for medi4736 a phase iii 
pdl1 therapy for nsclc
  illumina inc to develop its next 
generation sequencing platform for 
diagnostic tests that screen genes and 
help predict patient responsiveness to  
our drugs
we also strengthened our immuno
oncology capabilities through the acquisition 
of definiens a pioneer in imaging and data 
analysis technology that identifies tumour 
tissue biomarkers by using biomarkers  
to select patients for clinical trials we hope 
to shorten clinical timelines and increase 
response rates 
  oncology from page 40
we are also applying our phc strategy to 
our asthma portfolio for example in our 
phase iii programmes for benralizumab and 
tralokinumab we are targeting patients with 
distinct asthma phenotypes to identify those 
most likely to respond to therapy and 
improve health outcomes benralizumab 
and tralokinumab are the first in a series  
of novel phcdriven biologic therapies  
that may represent a critical advance in  
the development of personalised asthma 
management 
  respiratory inflammation and autoimmunity 
from page 44
latestage development 
gmd is the science unit that drives our 
latestage portfolio across our therapy 
areas this work involves large phase iii 
clinical trial programmes that support the 
approval launch and reimbursement of  
new medicines and studies to expand 
indications for approved products gmd 
also delivers studies that demonstrate how 
our medicines work in the ‘real world’ to 
help healthcare professionals and payers 
understand the therapeutic as well as 
economic value of our medicines
accelerating the pipeline and  
increasing efficiency 
in 2014 we secured approvals in the us 
eu japan and china for four nmes 
including in the us and eu for lynparza  a 
novel treatment for ovarian cancer we also 
secured approvals for two lcm projects – 
the bydureon pen and xigduoxigduo xr 
as at 31 december 2014 there were 13 
nmes in latestage development – either in 
phase iiipivotal phase ii studies or under 
regulatory review 
also in 2014 we launched various 
programmes and delivered timely results  
for programmes already underway for 
example we launched phase iiipivotal 
phase ii studies for key nmes such as 
medi4736 and azd9291 for nsclc which 
may go from phase i trials to regulatory 
submission in just over two years also we 
completed the 21000 patient pegasus 
study for brilintabrilique which successfully 
met its primary efficacy endpoint for more 
information please see cardiovascular  
and metabolic diseases from page 35 and  
the parthenon case study on page 51 
also we initiated lcm programmes for 
benralizumab for copd and lynparza in 
adjuvant and metastatic brcamutated 
breast cancer these programmes reflect 
our efforts to prioritise investment 
accelerate rd for key programmes and 
focus resources to initiate clinical studies 
recruit patients and deliver data efficiently 
also we are increasing efficiency and 
productivity by implementing various 
simplification projects these projects 
include a new information management 
system for all regulatory submissions 
registrations and product changes  
and simplified clinical programme designs  
and study protocols in addition we  
signed an outsourcing agreement for 
operational safety regulatory maintenance 
and publishing tasks to release internal 
resources and focus on achieving our 
strategic priorities
  therapy area review from page 32
our personalised healthcare phc 
strategy
phc is at the heart of our rd strategy 
through its application we seek to  
better understand disease mechanisms 
increase the success rate of development 
projects reduce clinical trial time and cost 
deliver novel lifechanging medicines and 
develop sophisticated diagnostic protocols 
to identify those patients most likely to 
benefit from our medicines in 2014 we 
applied our phc strategy to approximately 
70 of our pipeline 
in 2014 we collaborated with various 
biomarker and diagnostic companies  
to support our drug development 
programmes for example in the field  
of oncology we entered into multiple 
collaborations including those with
  qiagen to develop a noninvasive 
circulating tumour dna diagnostic test 
to identify nsclc patients appropriate 
for treatment with iressa
  roche molecular systems inc to develop 
a plasmabased companion diagnostic 
test to support azd9291
with the consolidation 
of rd activities to 
strategic centres we 
hired new employees to 
strengthen our disease 
area expertise and 
technical capabilities”
53 astrazeneca annual report and form 20f information 2014
strategic report strategic report  business review
working collaboratively and fostering 
open innovation
an open research environment in which 
scientists freely exchange knowledge  
and ideas and collaborate is key to driving 
sustainable scientific innovation in 2014  
we enhanced our innovation capability 
fostered collaboration and gained access  
to what we believe are the best science  
and scientists by strengthening existing  
and establishing new collaborations with 
leading organisations such collaborations 
include those with
  the uk medical research council mrc 
to improve our understanding of human 
disease and create a joint research facility 
in cambridge uk
  the mrc the us national institute of 
health and the national research 
program for biopharmaceuticals in 
taiwan to help researchers unlock the 
potential of our compounds and develop 
lifechanging medicines
  the academic drug discovery 
consortium to facilitate research 
collaboration and provide researchers 
access to our compound library 
  cancer research uk to discover and 
develop novel cancer treatments and the 
commercial arm of cancer research uk 
cancer research technology to create  
a joint laboratory in cambridge uk for 
such work 
  the gustave roussy comprehensive 
cancer center in france to develop our 
oncology molecules in preclinical 
translational and clinical phases 
also in 2014 we launched an online 
platform to support our open innovation 
programmes and facilitate research 
collaborations with academia industry 
ngos and governments this new 
webbased portal allows scientists to 
access our open innovation programmes 
which include a clinical compound bank  
of patientready ‘live’ and discontinued 
compounds and biologics as well as a 
toolbox of compounds with optimised 
pharmacological properties 
our scientific reputation
publishing our work in scientific and medical 
journals and participating in key scientific 
conferences are also key to achieving 
scientific leadership communicating openly 
with the scientific community helps validate 
the quality of our research strengthen our 
reputation as an innovationdriven 
scienceled organisation and retain and 
recruit the best scientists in 2014 our 
medical staff and scientists authored more 
than 750 publications in various journals 
including the new england journal of 
medicine science and nature we also 
played a significant role at key scientific 
conferences such as those hosted by  
the american society of clinical oncology  
the european society of medical oncology 
the american diabetes association the 
european society of cardiology and the 
american thoracic society where we 
presented positive results from various 
clinical trials and generated significant 
interest within the scientific community
bioethics
†
we are committed to achieving scientific 
leadership and delivering lifechanging 
medicines in a trustworthy and ethical 
manner our global standards of bioethics 
apply to all our research activity whether 
conducted by us or third parties on  
our behalf 
patient safety
patient safety is very important to us  
and we strive to minimise the risks and 
maximise the benefits of our medicines 
through a robust and comprehensive 
pharmacovigilance programme we 
continually monitor our medicines to learn  
of any side effects not identified during the 
development process and provide accurate 
and uptodate information concerning the 
safety profile of our medicines to regulators 
healthcare professionals and where 
appropriate patients we also work closely 
with regulatory authorities worldwide to raise 
pharmacovigilance awareness 
our experienced patient safety team is 
dedicated to helping fulfil our commitment 
to patient safety each developing and 
marketed medicine is allocated a global 
safety physician and at least one patient 
safety scientist in addition each market  
is supported by a dedicated patient  
safety manager 
our chief medical officer has overall 
accountability for the benefitrisk profiles  
of our products in development and on  
the market he provides medical oversight 
and enforces appropriate risk assessment 
processes to facilitate efficient and informed 
safety decision making
investment in disease area and scientific 
capabilities
with the consolidation of rd activities to 
strategic centres we hired new employees 
to strengthen our disease area expertise 
and technical capabilities we also engaged 
medical experts to provide important insight 
into our drug programmes which will help 
ensure our medicines address the needs of 
patients as well as healthcare professionals
we established therapy area specific gmd 
units gmeds – for example in immuno
oncology and respiratory – to focus 
resources and therapy area expertise on 
key programmes and complement units 
driving our therapy areas we also 
enhanced our technology and capabilities 
and integrated people and projects within 
gmd following the acquisition of bms’s 
interest in the joint diabetes alliance and the 
strategic transaction with almirall
in addition we strengthened our support 
resources for patients and healthcare 
professionals our intelligent 
pharmaceuticals programme which allows 
patients and healthcare professionals to 
track and manage chronic conditions using 
interactive mobile and internetbased health 
tools gained momentum as various pilot 
projects were launched or completed 
we also strengthened our payer and 
realworld evidence capabilities to better 
provide the data and analysis that helps 
demonstrate the therapeutic and economic 
value of our medicines realworld evidence 
studies use observational data such as 
electronic medical records and patient 
surveys to show for example how a 
medicine may improve outcomes compared 
with other treatments or reduce demand for 
hospital or specialist care these studies 
may improve patient outcomes reduce 
healthcare cost and help focus our efforts  
to deliver innovative medicines 
750
in 2014 our medical staff and scientists 
authored more than 750 publications in 
various journals including the new 
england journal of medicine science 
and nature 
research and development continued
54 astrazeneca annual report and form 20f information 2014 organisations to comply with our global 
standards and we periodically conduct 
riskbased audits to monitor compliance
we believe that transparency enhances  
the understanding of how our medicines 
work and benefit patients to facilitate 
transparency we publish information about 
our clinical research we also publish 
information about the registration and 
results of our clinical trials – regardless  
of whether they are favourable – for all 
products and all phases including marketed 
medicines drugs in development and drugs 
whose development has been discontinued 
to further promote transparency we 
refreshed and enhanced our transparency 
strategy in 2014 for more information 
regarding our clinical trial registration 
results protocols and data please see  
our website or our dedicated clinical trials 
website wwwastrazenecaclinicaltrialscom 
animal research 
we are committed to helping the public 
understand our use of animals in research 
and our methods for reducing refining  
or replacing animals in research our 
commitment is reflected in our global 
bioethics policy it is also reflected in the 
‘concordat on openness in animal 
research in the uk’ which we signed in 
2014 and describes how we will increase 
transparency regarding our animal research 
we have developed internal standards  
that define our commitment to animal 
welfare and the responsible use of animals 
in research these standards specify the 
global principles that apply for compliance 
with our global bioethics policy such as 
authorisation of animal work standards  
for animal care and welfare and the 
compliance evaluation process additionally 
we have improved our process for tracking 
external animal use and evaluating research 
facilities to help ensure that facilities are 
evaluated uniformly
animal research use varies depending on 
numerous factors including our amount of 
preclinical research the complexity of the 
diseases under investigation and regulatory 
requirements we believe that without our 
active commitment to reducing refining or 
replacing animals in research our animal 
use would be much greater in 2014 we 
used 194 162 animals inhouse 2013 
260930 in addition 15634 animals were 
used by cros on our behalf 2013 19676
†  further information on astrazeneca’s approach to responsible 
business can be found in responsible business from page 
227 and on our website wwwastrazenecacomresponsibility
clinical trials and transparency 
in 2014 we conducted clinical trials at 
multiple sites in various countries and 
regions as shown in the chart below
the broad geographic span of our studies 
helps ensure that study participants reflect 
the diversity of patients for whom our 
medicines are intended and identify the 
patients for whom the medicine may be 
most beneficial our global governance 
process for determining where we locate 
clinical trials which considers the existence 
of experienced and independent ethics 
committees the presence of a robust 
regulatory regime and the availability  
of trained healthcare professionals and 
willing participants provides the framework 
for ensuring a consistent highquality 
approach worldwide 
protecting participants throughout the  
trial process is a priority and we have strict 
procedures to help ensure participants  
are not exposed to unnecessary risks 
before a trial begins we work to ensure  
that participants understand the nature  
and purpose of the research and that the 
proper procedure for gaining informed 
consent is followed 
all our clinical studies are conceptually 
designed and finally interpreted inhouse  
but some are conducted by cros on  
our behalf in 2014 approximately 27  
of patients in our small molecule studies  
and 67 of patients in our biologics studies 
were monitored by cros we require these 
patients in global studies 2014 
 small molecule studies biologics studies
 
18
17
9
7
27
21
2 2
13
4 4
16
27
33
europe uscanada asia  
pacific
central 
eastern  
europe
japan latin  
america
middle east 
and africa
55 astrazeneca annual report and form 20f information 2014
strategic report strategic report  business review
manufacturing and supply
our investment in production facilities 
continuous improvement initiatives 
and quality management systems 
helps us deliver our medicines to 
patients as efficiently as possible
overview
  focused on combining internal 
capabilities with costefficient external 
resources
  completed our new facility in china and 
continued to develop our new facility in 
russia to better supply local markets 
  announced plans to invest more than 
200 million in our us biologics centre 
to meet growing demand
  reduced manufacturing lead times 
average stock levels and inventory  
costs while improving customer 
responsiveness through continuous 
improvement initiatives
  implemented new software system to 
improve global supply chain processes 
  implemented new process for third 
party risk management including 
suppliers their partners and local 
business development partners
  committed to minimising our 
environmental impact through energy 
efficiency waste management and 
water conservation efforts
our manufacturing strategy seeks to 
combine innovative internal capabilities with 
costefficient external resources where 
efficiencies can be achieved we consider 
outsourcing production while retaining the 
final stages of production internally this 
helps ensure product integrity and quality 
assurance while providing cost efficiency 
and volume flexibility
progress on our two new key production 
facilities continued during 2014 in october 
2014 our facility at taizhou china delivered 
its first commercial product with the project 
completed ahead of schedule and under 
budget our facility in vorsino russia 
continued to complete regulatory validation 
and commercial production is expected to 
commence in 2015 both facilities will 
improve our ability to supply local markets 
also during 2014 we announced plans to 
invest more than 200 million to expand our 
biologics manufacturing centre in frederick 
maryland us this project will increase 
production capacity to support our maturing 
pipeline as well as the growing demand  
for biologics which represent nearly 50  
of our pipeline 
product quality and supply chain 
we are committed to high product quality 
which underpins the safety and efficacy of 
our medicines to help assure compliance 
and quality we maintain a comprehensive 
quality management system
our continuous improvement programme 
allows us to upgrade our systems and 
minimise environmental impact by focusing 
on increasing efficiency and cutting waste 
we have reduced manufacturing lead times 
average stock levels and inventory costs 
we have also improved customer 
responsiveness 
we apply lean production business 
improvement tools and methods to  
our manufacturing plants and entire  
supply chain to improve efficiency  
quality lead times and overall equipment 
2014 third party risk management assessments
step 1 – initial 
assessment
step 2 – risk 
assessment
step 3 – due 
diligence
step 4 –
extended 
due diligence
assessments 3224 1290 624 17
completed process 1933 525 210 1
2014 assessments by region
region number of assessments
global 123
asia pacific 1607
europe 723
americas 438
middle east  africa 333
total 3224
56 astrazeneca annual report and form 20f information 2014 we seek to work  
only with those 
suppliers whose 
standards of ethical 
behaviour are  
consistent with  
our own…”
compliance responsibility and supported by 
dedicated compliance teams our internal 
audit services ia function provides 
independent assurance 
working with suppliers
†
due to our strategy to outsource most api 
manufacturing we need an uninterrupted 
supply of high quality raw materials as 
such we place great importance on our 
global procurement policies and integrated 
risk management processes we purchase 
materials from a wide range of suppliers  
and work to mitigate supply risks such as 
disasters that disrupt supply chains or the 
unavailability of raw materials contingency 
plans include using dual or multiple 
suppliers where appropriate maintaining 
adequate stock levels and working to 
mitigate the effect of pricing fluctuations  
in raw materials 
we also seek to manage reputational risk 
our ethical standards are integral to our 
procurement and partnering activities and 
we continuously monitor compliance 
through assessments and improvement 
programmes we seek to work only with 
those suppliers whose standards of ethical 
behaviour are consistent with our own and 
will not use suppliers who are unable or 
unwilling to meet our standards
in 2014 we implemented a new process for 
third party risk management this process 
which consists of four steps and applies to 
all our suppliers downstream supply chain 
partners and local business development 
partners assesses risk based upon defined 
criteria including that related to antibribery 
and anticorruption data privacy the 
environment and wages each step of the 
process provides an additional level of 
assessment and we conduct more detailed 
assessments on those relationships 
identified as higher risk through this 
process we seek to better understand the 
partner’s risk approach ensure the partner 
understands and can meet our standards 
and mitigate risk the tables opposite show 
the assessments we conducted by step 
and region since the process began in may 
2014 this new risk management process 
builds on the 7 587 supplier assessments 
we completed since 2009 through our 
previous suppliers audit process 
in addition we conducted 40 audits on 
direct materials suppliers to ensure they 
employ appropriate quality health and 
safety practices thirty seven percent of 
suppliers met our expectations and 54 
effectiveness for example in 2014 we 
implemented an innovative software system 
to provide realtime data on our supply  
chain performance to reduce variability 
increase speed and identify improvement 
opportunities we also continue to establish 
more efficient processes with global  
supply chain experts providing support 
throughout the organisation 
regulation and compliance
manufacturing facilities and processes are 
subject to rigorous regulatory standards 
which continuously evolve and are not 
harmonised globally they are also subject 
to inspections by regulatory authorities who 
are authorised to mandate improvements to 
facilities and processes halt production and 
impose conditions for production to resume 
in 2014 we hosted 36 independent 
inspections from 20 regulatory authorities 
we reviewed observations from these 
inspections together with the outcomes  
of internal audits and where necessary 
implemented improvement actions 
we review and comment upon evolving 
national and international compliance 
regulations through our membership of 
industry associations for example we  
work with the european federation of 
pharmaceutical industries and associations 
efpia and the pharmaceutical research 
and manufacturers of america phrma to 
improve supply chain security and minimise 
drug shortages
our manufacturing and supply strategy 
reflects our commitment to maintaining the 
highest ethical standards and compliance 
with internal policies laws and regulations 
line managers are charged with primary 
case study
pharmaceuticals in the 
environment
†
pharmaceuticals including 
astrazeneca’s active pharmaceutical 
ingredients apis are frequently 
detected in the environment as  
an inevitable consequence of 
manufacturing patient use and 
disposal we are committed to  
the environmental stewardship  
of our apis and to ensure our 
manufacturing discharges are  
safe we have developed  
the concept of environmental 
reference concentrations ercs  
or safe discharge concentrations  
for each of our apis
  42 ercs established for apis
  100 of astrazeneca 
manufacturing operations comply 
with ercs
  7 2 erc assessments carried out 
on external suppliers in 2014
  € 10  2 m fouryear innovative 
medicines initiative project 
cofunded by the european 
commission initiated to assess  
the environmental risks posed by 
human medicines earlier in the 
drug discovery and development 
process and enable environmental 
data gaps for established products 
to be prioritised and tested
57 astrazeneca annual report and form 20f information 2014
strategic report strategic report  business review
manufacturing and supply continued
implemented improvements to address 
minor instances of noncompliance during 
our due diligence process we identified  
and rejected 33 suppliers including five  
for reputationalrelated concerns
environmental impact
†
 
our 2014 targets
‡
 included reducing 
  operational greenhouse gas footprint to 
758000 tonnes co 2 per year
  hazardous waste to 066 tonnesm sales 
and nonhazardous waste to 049 tonnes 
per employee
  water use to 37 million m
3

we are working to reduce our greenhouse 
gas emissions by among other things 
improving energy efficiency and pursuing 
lowercarbon alternatives to fossil fuels 
during 2014 our air and road travel and 
freight transport emissions increased due to 
greater business activity in our pursuit of a 
return to growth we are working however 
to ensure that our travel and transport 
activities are as efficient as possible
some of our respiratory therapies 
specifically the pmdis that rely on 
hydrofluoroalkane hfa propellants affect 
our carbon footprint 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 by the end 
of 2015 we aim to reduce our operational 
greenhouse gas footprint excluding 
emissions from patient use of our inhaler 
therapies by 20 from our 2010 levels  
in 2014 our operational greenhouse gas 
footprint totalled 738000 metric tonnes 
a reduction of 18 from our 2010 baseline 
for more information on carbon reporting 
please see responsible business from 
page 227 
waste management is another key aspect 
of our commitment to minimise our 
environmental impact by the end of 2015 
we aim to reduce our hazardous and 
nonhazardous waste by 15 from our 
2010 levels while waste prevention is our 
goal we seek to minimise waste through 
treatment recycling and the avoidance  
of landfill disposal when prevention is 
impractical in 2014 our total waste was 
35800 metric tonnes with a tonnesm 
index of 137  we reduced hazardous waste 
by 36 a reduction of 18 indexed to m 
revenues since 2010 due principally to 
changing production patterns and a major 
investment at our manufacturing site in the 
uk to enable recycling and reuse of solvent 
wastes our nonhazardous waste indexed 
against staff numbers has not improved due 
to staff reductions since the baseline 
was set
we recognise the need to use water 
responsibly and where possible to 
minimise water use in our facilities to  
reach our 2015 water use reduction target  
of 25 from 2010 levels we initiated water 
conservation plans at our largest sites in 
2014 our water use was 38 million m
3
 a 
reduction of 17 from our 2010 baseline 
water use indexed to revenues was 
145 m
3
m 5 from 2010 baseline 
we are also working to ensure that we 
measure and report the environmental 
impact of our external manufacturing 
activity and that our suppliers have 
appropriate environmental targets 
we believe we have captured data for 
more than 90 of the globally managed 
outsourced manufacture of key 
intermediates and apis formulation and 
packaging for our established brands 
 wwwastrazenecacomresponsibility
we continue to integrate environmental 
considerations across a medicine’s  
entire lifecycle from discovery research 
and development to manufacturing 
commercialisation and disposal we  
follow a progressive compliance programme 
to ensure that our manufacturing emissions 
of apis do not exceed our standards  
for safe discharges at our manufacturing 
sites and periodically conduct compliance 
assessments we also follow a progressive 
approach to ensure ecopharmacovigilance 
this involves regularly reviewing emerging 
science and literature for new information 
that might inform the environmental risk 
management plans for our products  
we published our approach in the  
drug safety journal in july 2013 further 
information including environmental  
risk assessment data for our medicines  
is available on our website  
wwwastrazenecacomresponsibility
†  further information on astrazeneca’s approach to  
responsible business can be found in responsible  
business from page 227 and on our website  
wwwastrazenecacomresponsibility
‡  figures have been revised from those previously published  
to incorporate our biologics capabilities into our targets  
our targets for 2011 to 2015 were set in 2010
waste production 
thousand tonnes
operational greenhouse gas footprint 
emissions thousand tonnes
water use
million m
3

2014
2013
2012
738
717
739
2014
2013
2012
358
328
436
2014
2013
2012
38
37
36
58 astrazeneca annual report and form 20f information 2014 strategic report  business review
sales and marketing 
overview
  sales and marketing teams in more 
than 100 countries
  sales increased by 22 in china 
which is now our second largest 
market
  sales increased by 4 in the us due 
to strong performance by symbicort 
brilinta and the diabetes franchise 
aided by the acquisition of bms’s 
share in the diabetes alliance
  despite an austere macroeconomic 
climate we continued to launch 
innovative medicines in europe
  worked closely with payers and 
providers to help deliver costeffective 
medicines
  increased access to healthcare 
through programmes in latin america 
the middle east and africa and asia 
pacific serving some 27 million people
  reaffirmed our commitment to ethical 
sales and marketing activity through 
employee training monitoring 
corrective actions and reporting
  began us government reporting on 
payments to physicians and teaching 
hospitals in compliance with the 
physician payments sunshine act
organisation and approach
to improve health and bring benefits to 
patients around the world we need to 
ensure the right medicines are available and 
that patients have access to them to that 
end our sales and marketing teams which 
comprised around 34800 employees at the 
end of 2014 are active in more than 100 
countries in most countries we sell our 
medicines through whollyowned local 
marketing companies we also sell through 
distributors and local representative offices 
we market our products largely to  
primary care and specialty care physicians 
we aim to meet their needs by having  
highly accountable local leaders who 
understand their customers and focus  
on business growth 
we group our sales and marketing function 
into three commercial regions – north 
america europe and international together 
with japan one of our growth platforms 
our gpps organisation develops global 
product strategies and drives commercial 
excellence ensuring a strong customer 
focus and commercial direction in managing 
our pipeline and marketed products all our 
efforts are underpinned by a commitment to 
operating responsibly and conducting sales 
and marketing activity in accordance with 
applicable laws and our values
us
as the third largest prescriptionbased 
pharmaceutical company in the us  
we have a 52 market share of us 
pharmaceuticals by sales value
in 2014 sales in the us increased by 4  
to 10 120 million 2013 9691 million 
2012 10655 million driven by strong 
performance of our growth platforms 
including symbicort and brilinta and the 
impact of completing the acquisition of 
bms’s share of the global diabetes alliance 
partially offset by declines in revenue from 
nexium seroquel ir and synagis 
the affordable care act which was 
enacted in march 2010 has had and is 
expected to continue to have a significant 
impact on our us sales and the us 
healthcare industry in 2014 the overall 
reduction in our profit before tax for  
the year due to discounts on branded 
pharmaceutical sales to medicare part d 
beneficiaries and an industrywide excise 
fee was 714 million 2013 557 million 
  for more information on pricing pressure 
and the aca please see marketplace from page 
14 and geographical review from page 220
while there is no direct governmental price 
control for commercial prescription drug 
sales in the us some publicly funded 
programmes such as medicaid and 
tricare department of veterans affairs 
have statutorily mandated rebates and 
discounts which effectively serve as price 
controls for these programmes also 
pressure on pricing and the availability and 
use of prescription drugs for commercial 
and public payers continues to increase 
this is due to among other things an 
increased focus on generic alternatives  
the increased use of generics is also due to 
rising patient coinsurance or copayments 
for branded pharmaceuticals and budgetary 
our return to growth strategy is built on 
maximising the potential of our strong 
portfolio of primary care and specialty 
care medicines as well as leveraging our 
global commercial presence particularly 
in emerging markets we are investing  
in our growth platforms while focused 
business development supports our 
latestage and marketed portfolio
59 astrazeneca annual report and form 20f information 2014
strategic report strategic report  business review
established rest of world row 
opportunities and challenges
in 2014 sales in japan decreased by 3 to 
2227 million 2013 2485 million driven 
by generic competition and the impact of 
mandated biennial price cuts partially offset 
by performance of growth platforms we 
share the promotion of crestor symbicort 
nexium and forxiga with japanese 
partners who also distribute nexium 
symbicort and forxiga in japan we are 
ranked third in the oncology market by sales 
of medicines to maintain this important 
franchise we launched janssen 
pharmaceutical k k and janssen 
pharmaceutical nv’s zytiga abiraterone 
acetate for castrationresistant prostate 
cancer in 2014 as part of a 2013  
copromotion agreement with them
in canada provincial and territorial payers 
who represent nearly 55 of the market 
have developed a structure for pan
canadian product listings which could 
restrict the introduction of new products into 
the public healthcare system private sector 
payers representing the remaining 45  
are experimenting with tiered access 
programmes for large public and private 
employer groups while reimbursement for 
new medicines is likely to remain pricing 
pressure will increase
our sales in australia and new zealand 
declined by 13 in 2014 this was primarily 
due to the continued erosion of crestor and 
atacand by generic medicines nexium lost 
exclusivity in australia in 2014 and generic 
medicines were launched 
  established row comprises australia canada new zealand 
and japan
 geographical review from page 220
emerging markets expansion  
and collaboration 
emerging markets as defined in market 
definitions on page 239 comprise  
various countries with dynamic growing 
economies as outlined in marketplace  
from page 14 these countries represent  
a major growth opportunity for the 
pharmaceutical industry due to strong 
demand and economic fundamentals
emerging markets are not immune 
however to economic downturn market 
volatility is higher than in established 
markets and various political and economic 
challenges exist including regulatory and 
government interventions
astrazeneca was the eighth largest  
as measured by sales and the third 
fastestgrowing top 10 multinational 
pharmaceutical company in emerging 
markets in 2014 with revenues of 
5827 million our strongest growth 
opportunities include china russia africa 
india indonesia malaysia south korea 
vietnam brazil argentina and chile
astrazeneca is the second largest 
pharmaceutical company as measured by 
sales in china we are driving sustainable 
growth through strategic brands investment 
expanded hospitals coverage and 
systematic organisational capability 
improvements sales in china in 2014 
increased by 22 to 2242 million 2013 
1840 million we delivered sales growth at 
nearly double the growth rate of the market 
and initiated several longterm market 
expansion programmes in therapy areas 
the healthcare environment in china 
remains dynamic with opportunities arising 
from incremental healthcare investment 
strong underlying demand and the 
emergence of innovative medicines
growth drivers for emerging markets 
include our new medicines notably brilinta 
and our diabetes respiratory oncology cv 
and gastrointestinal portfolios to educate 
physicians on our broad portfolio we are 
selectively investing in sales capabilities 
where opportunities from unmet medical 
need exist we are also expanding our  
reach through multichannel marketing 
we are also engaging in innovative 
collaborations to access novel science 
technology and medicines to complement 
and strengthen our portfolio such as  
policies of healthcare systems and 
providers including policies about the use of 
‘generics only’ formularies in 2014 833 
of prescriptions dispensed in the us were 
generic compared with 822 in 2013 
while the adoption of a broad national 
pricecontrol scheme in the near future is 
unlikely increased focus on pharmaceutical 
prices and their impact on healthcare costs 
is likely to continue
  geographical review from page 220
europe
our european business comprises western 
and eastern european markets which 
include france germany italy the uk 
spain and the nordicbaltic countries the 
total european pharmaceutical market was 
worth 216 billion in 2014 we are the tenth 
largest pharmaceutical company in europe 
with a 27 market share of prescription 
sales by value 
in 2014 our sales in europe decreased by 
1 to 6638 million 2013 6658 million 
key drivers of the decline were competition 
from symbicort analogues ongoing volume 
erosion of atacand and seroquel xr 
following loss of exclusivity and lower net 
pricing on synagis the continued austere 
macroeconomic environment increased 
government interventions for example price 
and volume interventions and increased 
trade across markets also affected sales 
despite these conditions we continue to 
launch innovative medicines across europe 
 geographical review from page 220
confirmed external breaches
breaches of external sales and marketing 
codes and regulations
2014 6
2013 11
2012 10
corrective actions
related to breaches of code of conduct 
and global policies by commercial 
employees and contractors
number of persons
action taken 2014 2013
removed from role
1
213 187 
formal warning 454 568 
guidance andor coaching 1573 1813 
total 2240 2568 
1
  in the majority of cases this means dismissal or contract 
termination but it can include resignation and demotion
sales and marketing continued 
60 astrazeneca annual report and form 20f information 2014 as our ‘faz bem’ wellbeing programme 
in brazil which provides discounts on  
our medicines and other patient services 
and our patient access card 
programmes in central and eastern 
europe we expanded our programmes 
across latin america the middle east 
and africa and asia pacific by the end  
of 2014 these programmes served 
approximately 27 million patients
  improving access particularly in 
developing countries where access can 
be a significant healthcare barrier in 2014 
we expanded efforts in africa to enable 
greater access to hypertension 
medication and other essential services 
for patients who are otherwise unable to 
access medication or other forms of 
treatment for more information please 
see the healthy heart africa case study 
on page 67 
sales and marketing ethics
†
 
we are committed to employing high ethical 
standards of sales and marketing practice 
worldwide and ensuring compliance with 
our global policy on ethical interactions  
we report publicly on the number of
  confirmed breaches of external sales  
and marketing codes 
  failures to meet our standards by 
employees and contractors in our 
commercial regions
  corrective actions for breaches of our 
code of conduct or supporting policies 
by employees and contractors in our 
commercial regions
during 2014 we continued to train 
employees on the global standards  
that govern the way we operate we  
have comprehensive processes as well  
as dedicated compliance professionals  
who monitor adherence to our code of 
conduct and global policies and support 
our line managers locally in supervising  
their staff we also have a network of 
nominated signatories who review our 
promotional materials against applicable 
requirements in 2014 audit professionals 
also conducted compliance audits on 
selected marketing companies
as shown in the confirmed external 
breaches table opposite we identified six 
confirmed breaches of external sales and 
marketing regulations or codes in 2014 
2013 1 1 there were 1847 instances most 
of them minor of noncompliance with our 
code of conduct global policies or related 
control standards in our commercial 
regions including instances by contract 
staff and other third parties 2013 1773 
we removed 213 employees or contractors 
from their roles as a result of these breaches 
a single breach may involve more than one 
person we also formally warned 454 
others and provided further guidance or 
coaching on our policies to 1573 more  
the most serious breaches are raised with 
the audit committee
us corporate integrity agreement  
and the physician payments sunshine 
act reporting 
in april 2010 astrazeneca signed an 
agreement with the doj to settle an 
investigation relating to the sales and 
marketing of seroquel ir the requirements 
of the associated corporate integrity 
agreement cia 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 
the 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 the cia requirements 
under the cia astrazeneca also discloses 
on a publicly available website certain 
payments to us physicians and institutions 
in addition from march 2014 astrazeneca 
began reporting to the us government 
detailed information relating to payments to 
physicians and teaching hospitals in the us 
as required by the physician payments 
sunshine act
†  further information on astrazeneca’s approach to responsible 
business can be found in responsible business from page 
227 and on our website wwwastrazenecacomresponsibility
our collaboration with fibrogen in china  
to develop and commercialise roxadustat  
a firstinclass oral compound for treating 
anaemia and science collaborations  
with research institutes in several  
emerging markets 
  geographical review from page 220
pricing our medicines 
our global pricing policy provides the 
framework to ensure appropriate patient 
access while optimising the sustained 
profitability of our products when setting 
the price of a medicine we consider its  
full value to patients payers and society 
generally we also pursue a flexible pricing 
approach for example we support the 
concept of differential pricing provided  
that appropriate safeguards are in place  
to help ensure lowerpriced products  
reach the patients who need them and  
are not diverted for sale and use in more 
affluent markets 
delivering value for payers 
our medicines help treat unmet medical 
need improve health and create economic 
and therapeutic benefits effective 
treatments can lower healthcare costs by 
reducing the need for more expensive care 
preventing more serious and costly diseases 
and increasing productivity by reducing or 
preventing days lost to illness nevertheless 
as outlined in pricing pressure in 
marketplace on page 17  pricing pressure 
remains we are acutely aware of the 
economic challenges faced by payers and 
remain committed to delivering value to 
payers and patients alike we work closely 
with payers and providers to understand 
their priorities and requirements and 
conduct realworld evidence studies to 
demonstrate how our products improve 
health outcomes offer value and support 
costeffective healthcare
increasing access to healthcare
†
we are committed to increasing access  
to healthcare for underserved patients 
our access to healthcare strategy 
comprises three components 
  our mainstream business which is the 
prime enabler of access to our medicines 
  improving affordability which is 
particularly crucial among the growing 
middle class in emerging markets we 
continue to improve our capabilities and 
build on the experience of initiatives such 
61 astrazeneca annual report and form 20f information 2014
strategic report strategic report  resources review
employees
to achieve our strategic priorities we 
need to acquire retain and develop a 
talented workforce committed to the 
pursuit of our purpose and values 
overview
  hired some 9900 permanent 
employees to help us achieve our 
strategic priorities
  successfully integrated 4 100 people 
into astrazeneca following the bms 
and almirall transactions
  offered customised leadership 
programmes through harvard 
business school and mit
  embedded corporate values into key 
hr processes as part of systematic 
cultural change
  introduced star programme to teach 
emerging talent about enterprise 
leadership 
  significantly improved employee 
engagement according to employee 
survey results
  further improved – ahead of target – 
lost time injuryillness rate performance 
above 2010 baseline
we value the talents and skills of our  
57 500 employees in more than 100 
countries our employees strategy which 
supports our strategic priority of being a 
great place to work is based on various  
key principles these principles include 
acquiring retaining and developing talent 
and inspiring and engaging employees in 
our purpose and values
acquiring and retaining talent
during 2014 we hired some 9900 
permanent employees these people  
with roles in for example rd technical 
marketing and management roles are 
helping achieve our strategic priorities 
to help secure our future we are identifying 
and recruiting emerging talent and investing 
in internships and recruitment opportunities 
globally for example we conduct a global 
programme to hire recent graduates for our 
procurement quality engineering it and 
supply chain functions we also have a 
graduate programme for imed which 
complements our established imed post 
doctorate programme for researcher 
recruitment 
the composition of our international 
workforce changes with our business  
focus this can be seen in the sales and 
marketing figures opposite which show  
a concentration in emerging markets  
to attract and retain the people we need 
we continuously strive to maintain a strong 
global reputation 
voluntary employee turnover increased 
marginally to 87 in 2014 from 8 1 in 
2013 our voluntary employee turnover rate 
among our high performers in 2014 also 
increased to 68 we seek to reduce 
regretted turnover through highlevel reviews 
of resignations risk assessments and 
retention plans 
acquisitions to support our growth 
platforms
two of our acquisitions in 2014 involved  
the transfer of a substantial number of 
employees approximately 3600 bms  
and amylin employees joined us in  
february 2014 following our acquisition  
of bms’s interest in the joint diabetes 
alliance approximately 500 almirall 
employees joined us in november 2014 
following our acquisition of the rights to 
almirall’s respiratory franchise and its  
device subsidiary 
passionate about developing 
employees
various leadership programmes seek to 
maximise our employees’ potential these 
programmes both online and instructorled 
help build the right capabilities and culture  
to deliver our strategy
in 2014 we offered a customised 
programme for our top 150 talent  
with harvard business school and a 
programme for emerging leaders with  
the massachusetts institute of technology 
mit both programmes aim to foster 
openness inclusivity and innovation  
we hope to offer leaders at all levels of the 
organisation appropriate globally consistent 
leadership development opportunities
changing our culture
each of our values has a corresponding set 
of behaviours these behaviours which are 
essential for strong and effective leadership 
apply to all employees and are reinforced  
by complementary accountabilities for 
employees by geographical area  
 europe 327
 north america 235
 central and south  
 america 61
 middle east and africa 42
 total asia pacific 335
  china 169
  japan 48
  russia 26
  other asia pacific 92
62 astrazeneca annual report and form 20f information 2014 to measure progress over the medium 
term we also track the countries of origin  
of senior leaders and emerging talent our 
responsible business council made up  
of senior leaders from across astrazeneca 
oversees this process for more information 
please see responsible business from 
page 227 
our insight exchange programme  
helps foster diversity and inclusion and 
strengthens our pool of emerging talent 
this programme which is now in its  
third year pairs employees from various 
locations levels and functional areas 
to work together for one year to facilitate 
reflection and learning from diverse 
perspectives viewpoints and experiences 
in 2014 we launched a cohort of 60  
new pairs
our progress to improve diversity and 
inclusion is reflected in the diversity  
inclusion index this index which is 
reported in our employee survey see 
employee engagement below showed  
an improvement of three percentage  
points compared with 2012 and at 80 
favourable is three percentage points  
above the global benchmark
our efforts were recognised externally  
in 2014 the national association for female 
executives ranked us in the top ten of  
its 50 leading companies for the sixth 
consecutive year and the human rights 
campaign foundation named us as a ‘best 
place to work for lgbt equality’ we were 
also featured among working mother 
magazine’s ‘100 best companies’
employee engagement 
various global leadership communication 
channels engage employees in our strategy 
and encourage dialogue these channels 
include facetoface meetings video 
conferencing yammer a social media tool 
and regular global and businessspecific 
communication campaigns 
we held a global employee census survey 
focus in 2014 as well as two brief  
‘pulse’ surveys across a sample of the 
organisation the results from focus 
which was conducted in 29 languages and 
achieved an 89 response rate showed 
significant improvement in employee 
engagement scores increased to 85  
up eight percentage points compared to 
focus 2012 and only one percentage 
point behind the global high performing 
norm the survey also showed 
managers during 2014 we embedded 
these values and behaviours into key hr 
processes such as performance and talent 
management and recruitment
maximising our talent
to maximise our talent we focus on 
developing our future leaders from within 
and hiring judiciously from the outside  
in each case we greatly value these 
individuals and their skills and support them 
to reach their full potential in 2014 we 
introduced a new programme for talent 
early in their career the star programme 
which we offered six times in 2014 teaches 
emerging talent about enterprise leadership 
and provides an opportunity to study 
astrazeneca cases and interact with senior 
leaders in 2014 approximately 240 people 
participated in our talent development 
programmes which include the star 
programme global talent programme  
and the insight exchange programme 
we are committed to hiring and promoting 
talent ethically and in compliance with 
applicable laws our policies and 
procedures are designed to help protect 
against discrimination on any grounds 
including disability and cover recruitment 
and selection performance management 
career development and promotion 
transfer training retraining including 
retraining if needed for people who have 
become disabled and reward
improving the strength and diversity  
of the talent pipeline
†
to foster innovation we seek to harness 
various perspectives talents and ideas  
and to ensure that our employees reflect  
the diversity of our communities as we 
continue to reshape our organisation and its 
geographic footprint we embed inclusion 
into our strategies 
as shown in the gender diversity figure 
overleaf women comprise 499 of our 
global workforce there are currently four 
women on our board 31 and below 
board level women comprise 405  
of managers at global career level f  
and above 
our 2015 target is to improve female 
representation
  at global career level f and above  
the highest six bands of our employee 
population from 38 2010 to 41 2015
  in the global talent pool from 33 2010 
to 38 2015 
improvements across all categories for 
which we had a point of comparison for 
2012 including understanding and belief  
in our direction and priorities the score  
for recommending astrazeneca as a great 
place to work was 82 although the 
results showed significant improvement in 
employee engagement we identified two 
specific areas for improvement one relates 
to further simplifying the business and 
eliminating obstacles to efficiency the 
second relates to developing our people 
where the survey results showed that 
employee belief in the existence of 
opportunities for career development and 
personal growth is two percentage points 
below the high performing benchmark in 
addition to conducting several employee 
surveys we tracked key hr metrics such 
as retention rates during 2014 to help 
assess levels of engagement
performance management
we continue to focus on performance  
by setting highquality objectives aligned 
with our strategy and performing coaching 
and feedback analysis we are able to track 
performance at every level this includes 
managers’ accountability for working  
with their employees to develop individual 
and team performance targets it also 
involves fostering an understanding about 
each person’s contribution to our overall 
business objectives
our focus on performance is also 
demonstrated through our performance
related bonus and incentive plans and 
encouragement of participation in various 
employee share plans some of which are 
described in the directors’ remuneration 
report from page 100 and also in note 26  
to the financial statements from page 179
human rights
†
we are committed to respecting and 
promoting international human rights – not 
only in our own operations but also in our 
wider spheres of influence to that end we 
integrate human rights considerations into 
our policies processes and practices 
sales and marketing workforce 
composition  
2014
2013
2012
2011
2010
48
47
52
57
58
53
48
43
42
52
  emerging markets established markets
63 astrazeneca annual report and form 20f information 2014
strategic report strategic report  resources review
employees continued
we support the principles set out in the 
united nations universal declaration of 
human rights and the international labour 
organization’s ilo standards on child 
labour and minimum wages we are also 
members of the united nations global 
compact on human rights 
in 201 1 we conducted labour reviews in  
106 countries that focused on ilo core 
areas including freedom of association  
and collective bargaining child labour 
discrimination working hours and wages 
we are currently conducting these reviews 
again and returns so far show sustained 
good results we also included questions  
on the ‘living wage’ and are conducting an 
independent external review so that we can 
assess the global developments in this area 
managing change 
the number of employees increased  
from approximately 51500 in 2013 to  
57 500 in 2014 the majority of external  
hires were recruited into emerging markets 
others successfully transitioned from bms 
and almirall to support our diabetes and 
respiratory franchises we also restructured 
our business in other areas to increase 
efficiencies 
  for more information on our restructuring 
programme please see financial review 
from page 70
in 2013 we announced plans to invest in 
three strategic rd centres which affected 
employees in the us and the uk we 
encouraged and supported employees to 
relocate and have made good progress  
for example more than 400 employees 
now work at our cambridge uk site of 
these employees more than half relocated 
from other sites such as those in london 
macclesfield and alderley park over the 
next three years we expect to hire 
approximately 1000 new employees to 
occupy our new site in cambridge and  
we are using interim infrastructure in and 
around cambridge during the transitional 
phase for employees who do not accept 
offers to relocate to cambridge uk we 
provide career and outplacement support 
similar relocation initiatives are underway 
elsewhere in our organisation including  
in the us where almost 300 employees 
have accepted offers to relocate to 
gaithersburg maryland
employee relations 
we seek to follow a global approach to 
employee relations guided by global 
employment principles and standards  
local laws and good practice we work to 
develop and maintain good relations with 
local workforces and work closely with 
national trade unions where practical  
we also regularly consult with employee 
representatives or where applicable trade 
unions who share our aim of retaining key 
skills and mitigating job losses 
safety health and wellbeing
† 
we work to promote a safe healthy and 
energising work environment in which our 
employees and partners are able to express 
their talents drive innovation and improve 
business performance
our targets for 2014 which we set in 201 1 
for the years up to 2015 included
  no fatalities
  lost time injuryillness rate per million 
hours worked of 2 1
  6 1 collisions per million kilometres driven
  at least 80 of sites and marketing 
companies offer at least five essential 
health activities
our highest priority for improvement 
remains driver safety particularly among  
our sales forces who form the largest  
group of employees driving on astrazeneca 
business we monitor performance centrally 
to assess progress and identify areas for 
improvement in 2014 we exceeded our 
annual target for collisions per million 
kilometres driven and met our 2015 target 
one year early we regret however that an 
employee was killed in a traffic accident 
while driving on astrazeneca business 
during 2014 we initiated a detailed 
investigation and will develop an action plan 
to address the findings of the investigation 
we will monitor the actions and share 
learning across astrazeneca
having already achieved our 2015 lost time 
injuryillness rate target two years early we 
achieved a further reduction in 2014 the 
lost time injuryillness rate reduced by 17 
from 2013 which equates to a 38 overall 
reduction from the 2010 baseline 
the 2014 health and wellbeing target was 
narrowly missed with 78 of sites offering 
at least five activities although this is 
disappointing 91 of sites now offer at least 
four activities compared with 66 in 2012
†  further information on astrazeneca’s approach to responsible 
business can be found in responsible business from page 227 
and on our website wwwastrazenecacomresponsibility
vehicle collisions 
year
collisions
per million km target
2015 560
2014 514
1
610
2013 613 660
board of directors of the company 13
set 13
directors of the company’s 
subsidiaries 332 
astrazeneca employees 57500 
 
 male 69
 female 31
 male 77
 female 23
 male 735
 female 265
 male 501
 female 499
gender diversity
  for the purposes of section 414c8cii of the companies act 
2006 ‘senior managers’ are the set the directors of all of the 
subsidiaries of the company and other individuals holding 
named positions within those subsidiaries
lost time injuryillness
year
lost time injuryillness rate
per million hours worked target
2015 191
2014 159 210
2013 188 226
1
 preliminary figure subject to change
64 astrazeneca annual report and form 20f information 2014 strategic report  resources review
relationships
our employees are critical to achieving our strategic priorities to realise our full 
potential however we also depend on a wider set of stakeholders 
we pursue strategically aligned value
enhancing business development 
opportunities and focus on
  research transactions – increasing 
earlystage research transactions and 
academic alliances 
  peer collaborations – exploring 
valuecreating peer collaborations 
  inlicensing and bolton acquisitions – 
pursuing partnering inlicensing and 
bolton acquisitions to strengthen our 
therapy area portfolios
over the past three years we have 
completed more than 180 major or 
strategically important business 
development transactions including  
some 70 in 2014 of these transactions  
12 were related to clinical stage assets  
or programmes 47 to preclinical assets  
or programmes and 1 1 to phc and 
biomarkers twenty one transactions  
helped expand our biologics capabilities 
acquisitions included definiens and the 
rights to almirall’s respiratory franchise  
as well as its subsidiary focused on the 
development of innovative proprietary 
devices we completed the acquisition  
of bms’s share of the diabetes alliance  
in february 2014
for more information on our partnering 
activity in 2014 please see research and 
development from page 52 therapy  
area review from page 32 and note 24  
to the financial statements from page 170
community investment
†
 
our global community investment strategy 
focuses on healthcare in the community 
and science education we are committed 
to operating responsibly supporting our 
community and maximising the benefit  
of our investment for all stakeholders 
in 2014 we spent approximately 
880 million 2013 1 12 billion on 
community investment sponsorships 
partnerships and charitable donations 
including through our product donation and 
patient assistance programmes through 
our three patient assistance programmes  
in the us which make our medicines 
available free of charge to eligible patients 
and healthcare facilities we donated 
products valued at an average wholesale 
price of more than 800 million 2013 
105 billion we also donated products 
worth over 13 million valued at an  
average wholesale price to the charitable 
organisation americares 
young health programme
we continued to develop the three strands 
of our young health programme yhp 
advocacy research and ontheground 
programmes focused on evidence 
generation with an increased 2014 focus  
on the prevention of noncommunicable 
diseases ncds and associated adolescent 
risk behaviours with over 667 000 young 
people in communities across five 
continents directly reached with the skills 
and information they need to improve their 
health we have therefore well exceeded  
our clinton global initiative commitment to 
action of reaching 250000 young people 
directly by the end of 2015 over 9500 of 
these young people have been trained to 
our stakeholders include the patients and 
physicians for whom we provide medicines 
for some of the world’s most serious 
diseases and the universities and institutes 
that collaborate with our scientists they 
also include governments regulators 
payers suppliers and commercial entities
the sales and marketing section from page 
59 outlines our focus on customers and 
communicating effectively with them the 
research and development section from 
page 52 describes how we work with 
payers from an early stage in a medicine’s 
lifecycle to demonstrate its full value
in manufacturing and supply from page 56 
we examine our relationships with suppliers 
and our commitment to working only with 
those that embrace standards of ethical 
behaviour consistent with our own this 
commitment extends to joint venture 
copromotion partners and research and 
licensing partners
partnering
as outlined in strategic priorities  
from page 18 business development 
specifically partnering is an important  
pillar that supplements and strengthens  
our pipeline and our efforts to achieve 
scientific leadership as noted in research 
and development from page 52 we strive  
to access leading science from within  
and outside our laboratories 
we partner with others around the  
world including academia governments 
industry scientific organisations and patient 
groups to access the best science to 
stimulate innovation and accelerate the 
delivery of new medicines to target unmet 
medical need 
65 astrazeneca annual report and form 20f information 2014
strategic report relationships continued
strategic report  resources review
of adolescent health in december 2014  
to support progress in the adolescent ncd 
prevention agenda we commissioned the 
population reference bureau to produce 
several reports including one on the 
prevalence of ncd risk behaviours among 
young people in africa publication expected 
early 2015
stem career academies
we support science education in the 
community in various ways for example  
in 2014 we extended for three years our 
partnership with the educational charity 
career academies uk started in 2011  
to support increased participation by 16  
to 19 yearolds in science technology 
engineering and maths stem subjects 
career academies uk links schools and 
colleges with employers through classes 
mentoring workplace visits and internships 
to help prepare adolescents for work thirty 
five percent 59 of career academies now 
have a stem theme exceeding the target  
of 33 by the 20142015 academic year  
in 2014 812 year one and two students 
participated in stem of which 41 of the 
441 students expected to graduate in  
2015 are female this supports career 
academies uk’s commitment to increase 
female participation in stem education  
and careers
disaster relief
the british red cross continues to act  
as our global disaster relief partner with  
the majority of our disaster relief donations 
channelled through it in addition to the 
charitable donations referenced in 
community investment above in 
september 2014 we donated £50000 via 
the british red cross to the gaza israel 
appeal and £250000 to the ebola appeal
†  further information on our approach to responsible business 
can be found in responsible business from page 227 and  
on our website wwwastrazenecacomresponsibility
share this health information with their  
peers and the community and over 10000 
frontline health providers have been trained 
in adolescent health see the table below  
for programme details
to help place the prevention of adolescent 
ncdrelated risk behaviours on the global 
and local policy agenda we engaged in 
various activities including participation in 
the united nations highlevel review on 
ncds and the development of an ncds 
chapter for the unicef facts for life book 
also in 2014 the wellbeing of adolescents 
in vulnerable environments study 
undertaken by johns hopkins bloomberg 
school of public health as part of yhp   
was completed headline findings were 
presented at a yhp side meeting to the 
united nations general assembly in 
september 2014 and study papers were 
published in a special edition of the journal 
young health programme 2014 country programmes
country focus
australia improving driver licensing provision and knowledge of  
road safety
brazil india zambia hygiene infection sexual reproductive health and broader  
health issues
canada south korea 
portugal sweden
improving the emotional and mental wellbeing of vulnerable 
adolescents
china educating migrant youths from rural areas about water  
and air pollution
denmark physical activities among socially vulnerable young people
germany  
netherlands uk
health issues of homeless adolescents
norway health of young people from immigrant families
romania cardiovascular risk prevention through exercise clubs for  
young people
russia health of adolescent orphans focused on sport and smoking
spain sexual education healthy eating habits and drug addiction 
prevention
turkey improving communication and social skills among adolescents 
to help them avoid violence
us helping adolescents live healthier lives by focusing on their 
strengths and assets
 wwwyounghealthprogrammeyhpcom
66 astrazeneca annual report and form 20f information 2014 case study
healthy heart africa
†
in october 2014 we launched the healthy heart 
africa hha programme in nairobi kenya hha  
is an innovative and sustainable programme that 
aims to improve the lives of hypertensive patients 
across africa through increased screening 
diagnosis treatment and awareness of hypertensive 
risk factors and lifestyle modifications the initial 
demonstration programme will be the largest african 
programme to address hypertension consistent with 
the who’s ‘25 by 2025’ global monitoring framework 
for preventing and controlling ncds hha’s goal is  
to reach 10 million hypertensive patients across 
subsaharan africa by 2025 – onequarter of who’s 
hypertension target for africa 
to design and develop the programme we  
worked closely with governments international 
organisations health experts and nongovernmental 
and communitybased organisations some of  
these organisations including ampath the 
academic model providing access to healthcare 
amref kenya africa’s largest international health 
nongovernmental organisation chak christian 
health association of kenya a leading national 
faithbased organisation jhpiego a nonprofit  
health organisation affiliated with the johns hopkins 
university and population services kenya are  
now helping to implement hha we aim to increase 
the number of hhaparticipating organisations and 
partners to support implementation across kenya 
and africa hha’s independent monitoring and 
evaluation partner abt associates will support  
and monitor the programme’s progress
67 astrazeneca annual report and form 20f information 2014
strategic report strategic report  resources review
intellectual property
a wellfunctioning system of ip rights which rewards innovation and underpins 
our business model
pharmaceutical patent may not be  
marketed for several years after filing due  
to the duration of clinical trials and regulatory 
approval processes patent term 
extensions pte are available in certain 
major markets including the eu and the us 
to compensate for these delays the term of 
the pte can vary from zero to five years 
depending on the time taken to obtain any 
marketing approval the maximum patent 
term when including pte cannot exceed 
15 years eu or 14 years us from the first 
marketing authorisation
patent expiries
the tables on pages 201 and 202 set out 
certain patent expiry dates and sales for our 
key marketed products 
other exclusivities
in addition to patent protection regulatory 
data protection rdp or ‘data exclusivity’ is 
an important ip right which arises in respect 
of data which is required to be submitted to 
regulatory authorities to obtain marketing 
approvals for our medicines significant 
investment is required to generate such  
data for example through conducting 
global clinical trials and 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 it is respected differs 
significantly among countries rdp is an 
important protection for our products  
and we believe in enforcing our rights  
to it particularly as patent rights are 
increasingly being challenged
the rdp period starts from the date of the 
first marketing approval from the relevant 
regulatory authority and runs parallel to any 
pending patent protection rdp generally 
expires prior to patent expiry in all major 
markets if a product takes an unusually 
long time to secure marketing approval or  
if patent protection has not been secured 
has expired or has been lost then rdp  
may be the sole ip right protecting a product 
from copying as generic manufacturers 
should not be allowed to rely on 
astrazeneca’s data to support the generic 
product’s approval or marketing until the 
rdp right has expired in the eu the rdp 
period is eight years followed by two years 
marketing exclusivity in the us under the 
biologics license application process the 
fda will grant 12 years data exclusivity for  
a new biologic to an innovator manufacturer
in the us new chemical entities nces are 
entitled to a period of five years exclusivity 
under the federal food drug and cosmetic 
act this period of exclusivity runs parallel  
to any pending or granted patent protection 
and starts at the approval of the new 
application as with rdp  there are 
circumstances where this protection could 
be the sole ip right protecting a product 
from being copied
under orphan drug laws in the eu and us 
exclusivity is granted to an innovator who 
gains approval for a pharmaceutical product 
developed to treat a rare disease what 
qualifies as a rare condition differs between 
the eu and us and qualifying orphan drugs 
are granted ten years market exclusivity in 
the eu and seven years market exclusivity  
in the us
under the generating antibiotics incentives 
now act the fda may grant qualified 
infectious disease product qidp status  
an antibiotic achieving qidp status is 
granted five years exclusivity while qidps 
that are also nces such as azd0914 are 
entitled to ten years exclusivity and 12 years 
if the disease state is an orphan the period 
of exclusivity granted to a product with qidp 
status runs concurrently with any pending  
or granted patent protection
any of these additional protections may be 
challenged by competitors or otherwise lost
compulsory licensing
compulsory licensing the overruling of 
patent rights to allow patented medicines  
to be manufactured and sold by other 
parties is increasingly part of the access to 
medicines debate we recognise the right of 
developing countries to use the flexibilities in 
the world trade organization’s agreement 
on traderelated aspects of intellectual 
property rights trips including the doha 
amendment in certain circumstances such 
as a public health emergency we believe 
this should apply only when all other ways  
of meeting the emergency needs have 
been considered and where healthcare 
frameworks and safeguards exist to ensure 
the medicines reach those who need them
discovering and developing medicines 
requires a significant investment of 
resources by researchbased 
pharmaceutical companies over ten or more 
years for this to be a viable investment 
new medicines must be safeguarded from 
being copied with a reasonable amount of 
certainty for a reasonable period of time
our industry’s principal economic safeguard 
is a wellfunctioning patent system that 
recognises our efforts and rewards 
innovation with appropriate protection 
allowing time to generate the revenue  
we need to reinvest in pharmaceutical 
innovation patent rights are limited by 
territory and duration and a significant 
portion of a patent’s duration can be spent 
on rd before it is possible to launch the 
protected product therefore we commit 
significant resources to establishing and 
defending our patent and related ip 
protections for inventions
patent process
we file patent protection applications for our 
inventions to safeguard the large investment 
required to obtain marketing approvals for 
potential new drugs as we further develop  
a product and its uses new developments 
may be protected by new patent filings we 
apply for patents via patent offices around the 
world which assess whether our inventions 
meet the strict legal requirements for a patent 
to be granted our competitors can challenge 
our patents in patent offices andor courts 
we may face challenges early in the patent 
application process and throughout a patent’s 
life these challenges can be to the validity  
of a patent andor its effective scope and are 
based on everevolving legal precedents we 
are experiencing increased challenges in the 
us and elsewhere in the world such as in 
australia brazil canada china europe and 
japan and there can be no guarantee of 
success for either party in patent proceedings 
for information about third party challenges to 
patents protecting our products see note 27 
to the financial statements from page 182  
for more information on the risks relating to 
patent litigation and early loss and expiry of 
patents please see risk from page 203
the basic term of a patent is typically 20 
years from the filing of the patent application 
with the relevant government patent office 
however a product protected by a 
68 astrazeneca annual report and form 20f information 2014 strategic report  resources review
infrastructure
the group owns and operates rd and production facilities and conducts sales and 
marketing activities around the world these activities are supported by significant 
information technology and information services resources
manufacturing and supply resources
our principal small molecule manufacturing 
facilities are in the uk avlon and 
macclesfield sweden gärtuna and 
södertälje the us newark delaware 
westborough massachusetts and west 
chester ohio china wuxi and taizhou 
russia vorsino france reims and 
dunkerque japan maihara australia 
north ryde indonesia jakarta egypt 
cairo india bangalore puerto rico 
canóvanas germany wedel mexico 
lomas verdes brazil cotia and argentina 
buenos aires 
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 we also have major formulation 
sites for the global supply of parenteral and
or inhalation products in sweden france 
australia and the uk 
for biologics our principal commercial 
manufacturing facilities are in the us 
frederick maryland and greater 
philadelphia pennsylvania the uk speke 
and the netherlands nijmegen with 
capabilities in process development 
manufacturing and distribution of biologics 
including global supply of mabs and 
influenza vaccines 
at the end of 2014 approximately 10200 
people at 25 sites in 16 countries were 
working on the manufacture and supply  
of our products 
information technology and 
information services resources 
at the end of 2014 our it organisation 
comprised approximately 1400 people 
across our sites in the uk alderley park  
and macclesfield sweden södertälje  
and mölndal the us wilmington delaware 
and gaithersburg maryland and our  
new technology centre in india chennai 
together with people embedded in our  
rd and operations sites and our key 
marketing companies 
in the beginning of 2014 we launched a 
wideranging it transformation programme 
to better support our business priorities  
we have made various changes to our 
operating model and organisational 
structure to improve efficiency 
responsiveness and innovation
our it vision is to deliver worldclass 
performance in terms of speed quality  
cost and innovation achieving this requires 
improving our current performance 
significantly while reducing our overall 
spend success in achieving our vision  
will be measured by metrics which include 
customer satisfaction the number of 
severebusiness impacting incidents the 
speed with which we respond to and 
mitigate such incidents and project delivery 
and cost absolute and as a percentage  
of revenue as compared with industry 
benchmarks 
protecting our it systems ip and confidential 
information against cyberattacks is a key 
concern as such our it organisation works 
to develop and implement robust effective 
and agile riskbased approaches to protect 
our resources and keep pace with the 
rapidly evolving cybersecurity risk landscape 
to help protect against cybercrime we have 
adopted a comprehensive cybersecurity 
process and policy which we regularly 
review and update also we continuously 
monitor our systems and data with 
sophisticated technology a team of skilled 
it personnel and various other resources 
we also educate employees regarding 
cybercrime internet use and best practices 
to mitigate the risk of an attack  
rd resources 
we have approximately 9000 employees  
in our rd organisation in various sites 
around the world our small molecule  
sites are located in the uk alderley park 
cambridge and macclesfield sweden 
mölndal the us gaithersburg maryland 
and waltham massachusetts japan 
osaka and china shanghai our biologics 
sites are located in the uk cambridge  
and in the us gaithersburg maryland  
and mountain view california our 
gaithersburg maryland site focuses on 
latestage development for small molecules 
and biologics across our entire portfolio in 
march 2014 we announced the sale of our 
alderley park uk site as part of our plan  
to focus resources on developing our  
new global rd centre in cambridge  
uk our strategic expansion in emerging 
markets continues and includes the  
ongoing growth of our rd facility in china 
shanghai in 2014 we closed our rd  
site in india bangalore
rd spend analysis 
2014 2013 2012
discovery  
and earlystage 
development 47 55 60
latestage 
development 53 45 40
core rd  
expenditure
1
4941m 4269m 4241m
1
  reported rd expenditure was 56 billion 2013 48 billion 
2012 52 billion
in 2014 core rd expenditure was 
49 billion in our rd organisation  
2013 43 billion 2012 42 billion 
in addition we spent 907 million on 
acquiring product rights such as 
inlicensing 2013 635 million 2012 
5228 million and invested 497 million 
on the implementation of our rd 
restructuring strategy 2013 490 million 
2012 791 million the allocations of 
spend by earlystage and latestage 
development are presented in the rd 
spend analysis table above 
69 astrazeneca annual report and form 20f information 2014
strategic report strategic report
financial review
dear shareholder
in 2014 we continued to balance our 
investment for longterm growth against 
exploiting brandlaunch opportunities  
in the shortterm we also continued  
to follow the science and invest in our 
key therapeutic areas
contents
70 introduction 
71  business background and results 
overview
72 measuring performance
73  results of operations – summary 
analysis of year to 31 december 2014
75 cash flow and liquidity 
77 financial position
80 capitalisation and shareholder return
81 future prospects
81 financial risk management
82  critical accounting policies and 
estimates
85 sarbanesoxley act section 404
our financial performance in 2014 reflected 
continued progress from our growth 
platforms which grew 15 in the year and 
now contribute 53 of total revenue 
brilintabrilique showed steady progress 
globally and diabetes growth was strong 
with a successful farxigaforxiga launch 
and good us bydureon pen uptake 
building further momentum since the 
acquisition of bms’s share of the global 
diabetes alliance in february 2014 
emerging markets were up 12 with 
china growth of 22 making china 
astrazeneca’s second largest market 
investment in business development 
continued to be an important element in 
accelerating the return to growth in addition 
to the acquisition of the diabetes franchise 
the strategic transaction with almirall in 
respiratory disease further builds the scope 
and strength of our respiratory business 
overall the selective investment in our 
growth platforms which balances both 
strategic initiatives with shortterm 
opportunities increased core sga  
costs by 16 to 102 billion in 2014 
core rd expense in the year was up  
15 to 49 billion reflecting the conscious 
investment in our rapidly expanding 
latestage pipeline which has yielded an 
industryleading six ndabla approvals  
in the year
core other income in the year was up 64 
at 12 billion with milestone income related 
to the launch of nexium otc being the 
largest driver of the increase
core operating profit fell by 13 to 
69 billion reported operating profit at 
2 1 billion was adversely affected by fair 
value and other charges related to the 
acquisition of bms’s share of the global 
diabetes alliance
cash generated from operating activities  
in 2014 was 7  1 billion as we continued  
to focus on freeing up cash and improving 
working capital management our robust 
2014 balance sheet was reflected in strong 
investmentgrade ratings in the year we 
ended the year with net debt of 32 billion 
while maintaining a significant level of cash 
to give us financial flexibility
marc dunoyer 
chief financial officer
70 astrazeneca annual report and form 20f information 2014 our financial 
performance in 2014 
reflected continued 
progress from our growth 
platforms which grew 
15 in the year and now 
contribute 53 of  
total revenue” 
  the risk of competition from generics 
following loss of patent protection or 
patent expiry of one of our products or  
an ‘at risk’ launch by a competitor or the 
launch of a generic competitor in the 
same class as one of our products with 
the potential adverse effects on sales 
volumes and prices details of patent 
expiries for our key marketed products 
are included in patent expiries from  
page 201
  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 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 
  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 chinese 
renminbi and swedish krona 
  macro factors such as greater demand 
from an ageing population and increasing 
requirements of 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 are expected to emerge over the 
long term and there is considerable inherent 
uncertainty as to whether and when it will 
generate future products
the purpose of this financial review is  
to provide a balanced and comprehensive 
analysis of the financial performance of the 
business during 2014 the financial position 
as at the end of the year and the main 
business factors and trends that could 
affect the future financial performance of  
the business
all growth rates in this financial review are 
expressed at cer unless noted otherwise
business background and results 
overview 
the business background is covered in  
the marketplace section from page 14 the 
therapy area review from page 32 and the 
geographical review from page 220 and 
describes in detail the developments in both 
our products and the geographical regions 
in which we operate 
as described earlier in this 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 most significant features of our financial 
results in 2014 are
  revenue up 3 to 26095 million 
actual 1 
  a change in accounting related to the us 
branded pharmaceutical fee reduced 
revenue by 1 13 million excluding this 
effect cer growth would have been 4
  revenues of our growth platforms 
increased 15 in 2014 and constituted 
53 of our total revenue with
 − brilintabrilique up 70 reflecting 
continued global progress
 − diabetes up 139 reflecting 100 
ownership of the diabetes franchise 
the strong farxigaforxiga launch and 
good uptake of new bydureon pen in 
the us
 − respiratory up 10 with emerging 
markets growth of 27 and 
decelerating us growth of 15
 − emerging markets up 12 with china 
growth of 22 making china 
astrazeneca’s second largest market
 − japan down 3 due to mandated 
biennial price cuts increased use of 
generics and a nexium recall in the 
fourth quarter
  core operating profit was down 13 
actual 17 to 6937 million as we 
invested in our growth platforms and 
accelerated pipeline
  reported operating profit was down  
31 actual 42 to 2 137 million total 
restructuring costs associated with the 
global programme to reshape the cost 
base of our business were 1558 million 
in 2014
  core operating margin of 266 of 
revenue was down 50 percentage points 
actual 60 percentage points reported 
operating margin was 82 of revenue
  core eps for the full year was 428 
down 8 actual 15 the smaller 
decline compared with core operating 
profit was largely due to a lower tax rate 
reported eps was down 34 actual 
52 to 098
  dividends paid increased to 3521 million 
2013 3461 million 
71 astrazeneca annual report and form 20f information 2014
strategic report strategic report
financial review continued
  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 2014 reported operating 
profit table on the page opposite 
  gross and operating margin percentages 
these measures set out the progression 
of key performance margins and illustrate 
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 on a yearonyear or periodby
period basis the impact on 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
as shown in the 2014 reconciliation of 
reported results to core results table on  
the page opposite 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 by specific line item as such 
items are reflected in our reported income 
statement this illustrates 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
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 
measures all items for which core financial 
measures are adjusted are included in  
our reported financial information as 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 2014 
reported operating profit table on the page 
opposite our reconciliation of core financial 
measures to reported financial information 
in the reconciliation of reported results to 
core results table on the page opposite 
and to the results of operations – summary 
analysis of year to 31 december 2013 
section from page 229 for our discussion of 
comparative actual growth measures that 
reflect all factors that affect our business 
our determination of nongaap measures 
and 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
measuring performance
the following measures are referred to in 
this financial review when reporting on our 
performance both in absolute terms but 
more often in comparison to earlier years
  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 ifrss 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
 − amortisation and impairment of 
intangibles including impairment 
reversals but excluding any charges 
relating to it assets
 − charges and provisions related to our 
global restructuring programmes this 
will include such charges that relate to 
the impact of our global restructuring 
programmes on our capitalised it 
assets 
 − other specified items principally 
comprising legal settlements and 
acquisitionrelated costs which include 
fair value adjustments and the imputed 
finance charge relating to contingent 
consideration 
 in determining the adjustments to arrive  
at the core result we use a set of 
established principles relating to the 
nature and materiality of individual items 
or groups of items excluding for 
example events that i are outside the 
normal course of business ii are incurred 
in a pattern that is unrelated to the trends 
in the underlying financial performance of 
our ongoing business or iii are related to 
major acquisitions to ensure that 
investors’ ability to evaluate and analyse 
the underlying financial performance of 
our ongoing business is enhanced see 
the 2014 reconciliation of reported 
results to core results table on the 
opposite page for a reconciliation of 
reported to core performance 
72 astrazeneca annual report and form 20f information 2014 us revenue was up 4 actual 4 to 
10 120 million with europe down 1 
actual flat at 6638 million established 
row was down 4 actual 12 at  
3510 million emerging markets were up 
12 actual 8 to 5827 million mainly 
driven by growth in china of 22 actual 
22 to 2242 million china became our 
second largest market in 2014 further 
details of our sales performance are 
contained in the geographical review  
from page 220
in mid 2014 the us internal revenue 
service issued final regulations that affected 
how the annual us branded pharmaceutical 
fee imposed by the healthcare reform 
legislation in 2010 is recognised under  
the new regulations the fee will be based  
on actual sales in the current year which 
necessitated an additional year’s charge  
to be recognised in 2014 in line with other 
pharmaceutical industry peers we 
previously accrued for this charge based on 
prior year’s sales and recorded the charge 
as a cost in sga the final regulation has 
two impacts on the group’s results
as detailed above all growth rates in this 
section are expressed at cer unless  
noted otherwise
revenue for the year was up 3 at cer to 
26095 million up 1 on an actual basis 
accelerating performance of the group’s 
growth platforms as defined on page 1 1 
more than offset the impact of volume 
erosion on mature brands including  
nexium in the us and pricing pressures  
in established markets excluding the 
additional revenue from the acquisition  
of bms’s share of the global diabetes 
alliance and the impact of the us branded 
pharmaceutical fee restatement as detailed 
below revenue was stable
results of operations – summary analysis of year to 31 december 2014 
2014 reported operating profit
2014 2013 percentage of sales 2014 compared with 2013
reported
m
cer
growth
m
growth
due to
exchange
effects
m
reported
m
reported
2014

reported
2013

cer
growth

actual
growth

revenue 26095 833 449 25711 3 1
cost of sales 5842 572 9 5261 224 205 11 11
gross profit 20253 261 458 20450 776 795 1 1
distribution costs 324 23 5 306 12 12 7 6
research and development 5579 716 42 4821 214 187 15 16
selling general and administrative costs 13000 896 102 12206 498 475 7 7
other operating income and expense 787 218 26 595 30 23 37 32
operating profit 2137 1156 419 3712 82 144 31 42
net finance expense 885 445
share of after tax losses of joint ventures 6 –
profit before tax 1246 3267
taxation 11 696
profit for the period 1235 2571
basic earnings per share  098 204
2014 reconciliation of reported results to core results
2014
reported
m
restructuring
costs
m
intangible 
amortisation
and
impairments
m
acquisition of 
bms’s share 
of diabetes 
alliance 
m
legal 
provisions 
and other
m
2014 
core
m
core 2014 
compared with 2013
cer 
growth 

actual
growth

gross profit 20253 107 701 146 – 21207 3 1
gross margin  776 813
distribution costs 324 – – – – 324 7 6
research and development 5579 497 141 – – 4941 15 16
selling general and administrative costs 13000 662 811 932 379 10216 16 15
other operating income and expense 787 292 230 – 98 1211 64 61
operating profit 2137 1558 1883 1078 281 6937 13 17
operating margin  82 266
net finance expense 885 – – 345 47 493
taxation 11 255 376 356 42 1040
basic earnings per share  098 103 119 085 023 428
 each of the measures in the core column in the above table is a nongaap measure
73 astrazeneca annual report and form 20f information 2014
strategic report strategic report
was greater than the decline in revenue 
primarily due to expenditure associated with 
the group’s key growth platforms and 
strengthened pipeline
core eps was 428 down 8 compared 
with last year actual 15 the smaller 
decline in core eps compared with core 
operating profit was largely due to a lower 
tax rate this favourable tax effect was 
partially offset by an increase in the number 
of shares outstanding and a marginally 
higher core finance expense in the year 
compared with the prior year
pretax adjustments to arrive at core profit 
before tax amounted to 5 192 million in 
2014 2013 4678 million comprising 
4800 million adjustments to operating 
profit 2013 4678 million and 392 million 
to net finance expenses 2013 nil 
excluded from core results were 
  restructuring costs totalling 1558 million 
2013 1421 million incurred as the 
group continued the fourth phase of 
restructuring announced in march  
2013 restructuring costs included  
a 292 million loss on disposal of our 
alderley park site further details of our 
restructuring programme are given below 
  amortisation totalling 1784 million 2013 
1591 million relating to intangible 
assets except those related to it and our 
acquisition of bms’s share of the global 
diabetes alliance which are separately 
detailed below the increase was driven 
by amortisation charges in connection 
with our merck exit arrangements further 
information on our intangible assets is 
contained in note 9 to the financial 
statements from page 153
  intangible impairment charges of 
99 million 2013 net 1712 million 
including a 1758 million impairment 
relating to bydureon further details 
relating to intangible asset impairments 
are included in note 9 to the financial 
statements from page 153
  costs associated with our acquisition  
of bms’s share of the global diabetes 
alliance amounting to 1423 million 
included within this are 407 million  
of amortisation charges a contingent 
consideration fair value uplift charge of 
529 million reflecting higher expected 
diabetes portfolio revenues following  
the successful integration of the newly 
acquired elements and 345 million of 
interest charges relating to a discount 
unwind on contingent consideration 
arising on the acquisition as detailed  
in note 18 to the financial statements  
on page 161 
  net legal provisions and other charges  
of 328 million 2013 income of 
46 million including a 201 million 
charge for the additional year’s us 
branded pharmaceutical fee as detailed 
above and 47 million discount unwind 
charges relating to contingent 
consideration arising on our other 
business combinations as detailed  
in note 18 to the financial statements  
on page 161
reported operating profit for the year  
was down 31 at cer actual 42 to 
2 137 million reported eps was down 
34 actual 52 to 098 the larger 
declines compared with the respective core 
financial measures are mainly the result of 
our enhanced business acquisition activities 
including our acquisition of bms’s share  
of the global diabetes alliance offset by 
reduced impairment charges in 2014
reported net finance expense was 
885 million 2013 445 million the 
increase was driven by 453 million  
2013 nil for discount unwinds on 
contingent consideration arising on 
business combinations 391 million  
and other longterm liabilities 62 million
the reported taxation charge of 1 1 million 
2013 696 million consisted of a current 
tax charge of 872 million 2013 
1398 million and a credit arising from 
movements on deferred tax of 861 million 
2013 702 million the current tax charge 
includes a prior period current tax credit of 
109 million 2013 charge of 46 million
the tax paid for the year was 1201 million 
which is 96 of reported profit and 19  
of core profit
the reported tax rate for the year was 09 
2013 213 this reported tax rate of 
09 was impacted by a oneoff benefit  
of 1 17 million in respect of the inter
governmental agreement of a transfer 
pricing matter the noncore impact of the 
revaluation of the fair value of contingent 
consideration arising on business 
combinations charge of 512 million with 
related tax credit of 157 million and the 
benefit of the uk patent box legislation 
35 million excluding these effects the 
reported tax rate for the year would have 
been 182 the core tax rate for the year 
was 162 excluding the benefit from the 
transfer pricing agreement and patent box 
  as the fee is now calculated on actual 
sales in the current year astrazeneca 
considers it more appropriate to account 
for the fee as a deduction from revenue 
rather than a charge to sga the new 
legislation is effective from july 2014 and 
therefore astrazeneca has treated the 
charge for the period since july 2014 as  
a deduction from revenue rather than  
as a cost in sga in 2014 this had the 
effect of reducing revenue by 1 13 million 
this presentational change to the income 
statement had no impact on earnings for 
the year
  we recorded a catchup full annual 
charge to sga reflecting this new basis 
in 2014 the additional year’s charge was 
excluded from core financial measures as 
detailed below
core gross margin as a percentage of 
revenue was 813 in the year 04 
percentage points lower than last year at 
cer actual 07 percentage points as the 
effect of an unfavourable product mix 
including additional costs associated with 
the diabetes brands more than offset the 
benefit of a lower crestor royalty 
core rd expense in the year was up 15 
actual 16 to 4941 million reflecting 
increased spend on our latestage pipeline 
expenditures in core sga were up 16 
actual 15 to 10216 million driven by 
investments in sales and marketing 
dedicated to the group’s growth platforms 
the acquisitions of bms’s share of the 
diabetes alliance and the rights to almirall’s 
respiratory franchise added approximately 
4 100 employees we have approximately 
34800 employees working in sales and 
marketing compared to 29600 in the prior 
year the selective investment in our growth 
platforms is partially funded by a decline in 
ga costs during the year
core other income in the year was up 64 
actual 61 at 121 1 million which in 
addition to royalty income of 586 million 
includes milestone income of 200 million 
on the us launch and 50 million on the 
european launch of nexium otc and  
80 million of income in relation to the 
japanese launch of forxiga
core operating profit in the year was down 
13 to 6937 million core operating 
margin was 266 of revenue down 50 
percentage points actual 60 percentage 
points the decline in core operating profit 
financial review continued
74 astrazeneca annual report and form 20f information 2014 completed in 2009 the second phase 
began in 2010 and the restructuring actions 
were completed in 201 1
in march 2013 we announced a 
restructuring programme which was 
combined with the third phase of the 
programme announced in february 2012 to 
create a combined phase 4 programme it 
initially entailed an estimated global 
headcount reduction of about 5050 over 
the 2013 to 2016 period the combined 
programme of changes was estimated to 
incur 23 billion in onetime restructuring 
charges of which 17 billion were expected 
to be cash costs the overall phase 4 
programme remains on track to deliver 
approximately 800 million anticipated 
annual benefits by the end of 2016
the phase 4 programme was expanded in 
2013 to include additional activities such as 
a transformation of our it organisation and 
infrastructure the exit of rd activities in 
bangalore india and the exit from branded 
generics in certain emerging markets to 
further reduce costs and increase flexibility 
when completed the expansion of the 
restructuring programme is expected to 
deliver a further 300 million in annual 
benefits by the end of 2016 bringing total 
anticipated annualised benefits of the  
phase 4 programme to 1 1 billion total 
incremental programme costs from these 
new initiatives were estimated to be  
700 million of which 600 million is cash 
bringing the total anticipated cost of our 
phase 4 programme to 32 billion the 
expansion of the programme is estimated to 
affect approximately 550 positions bringing 
the total global headcount reduction under 
the phase 4 programme to around 5600 
over the 2013 to 2016 period 
restructuring charges of 1558 million were 
taken in 2014 the group is making good 
progress in implementing the fourth phase 
of restructuring announced in the first 
quarter of 2013 and the expansion of this 
programme announced in the first half of 
2014 in addition to costs of this programme 
the restructuring charge for the year 
includes 261 million incurred on integration 
of businesses acquired in the year and  
as a result of our decision to exit the 
westborough site 
final estimates for programme costs 
benefits and headcount impact in all 
functions are subject to completion of  
the requisite consultation in the various 
areas our priority as we undertake these 
restructuring initiatives is to work with  
our affected employees on the proposed 
changes acting in accordance with  
relevant local consultation requirements  
and employment law
the core tax rate would have been 185 
further details relating to movements in our 
taxation balances are included in note 4 to 
the financial statements from page 145
reported post tax profit for the year was 
1235 million a decrease of 34 actual 
52 reported eps was down 34 
actual 52 to 098
total comprehensive income decreased 
by 2729 million from the prior year 
resulting in a loss of 271 million this was 
driven by the decrease in profit for the 
year of 1336 million and a decrease of 
1393 million in other comprehensive 
income driven by movements in exchange 
rates in our consolidated results of  
1352 million principally due to the 
strengthening of the us dollar against 
pound sterling the euro and krona and 
losses on the remeasurement of our defined 
benefit pension liability of 766 million in 
accordance with the requirements of ias 19 
‘employee benefits’ driven by a reduction 
in the discount rate applied to our pension 
liabilities partially offset by actuarial gains 
on our scheme assets
restructuring 
since 2007  we have undertaken significant 
efforts to restructure and reshape our 
business to improve longterm 
competitiveness the first phase was 
cash flow and liquidity – 2014 
all data in this section is on a reported basis 
summary cash flows
2014
m
2013
m
2012
m
net fundsdebt brought forward at 1 january 39 1369 2849
earnings before interest tax depreciation amortisation and impairment ebitda 5419 8295 10666
movement in working capital and shortterm provisions 2508 166 706
tax paid 1201 844 2043
interest paid 533 475 545
noncash and other movements 865 258 424
net cash available from operating activities 7058 7400 6948
purchase of intangibles net 1740 1281 3947
upfront payments on business acquisition 3804 1158 1187
payment of contingent consideration on business acquisitions 657 – –
other capital expenditure net 924 673 473
investments 7125 3112 5607
dividends 3521 3461 3665
net share proceedsrepurchases 279 482 2206
distributions 3242 2979 5871
other movements 47 99 312
net debtfunds carried forward at 31 december 3223 39 1369
75 astrazeneca annual report and form 20f information 2014
strategic report strategic report
financial review continued
2703 million the rights to almirall’s 
respiratory franchise 876 million and  
the acquisition of definiens 150 million 
the comparative period of 2013 included 
payments on the completion of the 
acquisitions of pearl therapeutics omthera 
amplimmune and spirogen further details 
of our 2014 business acquisitions and their 
impact on our cash flows and balance sheet 
are given below investment cash outflows 
also include 657 million 2013 nil of 
payments against contingent consideration 
arising on business combinations and 
1740 million 2013 1316 million for the 
purchase of other intangible assets which 
included a 409 million payment to merck 
on the consummation of our second option 
as detailed in note 9 to the financial 
statements from page 153 and 310 million 
on the settlement of preexisting launch 
and salesrelated milestones with bms as 
detailed in note 24 to the financial 
statements on page 170 
net cash distributions to shareholders were 
3242 million 2013 2979 million through 
dividends of 3521 million 2013 
3461 million partially offset by proceeds 
from the issue of shares of 279 million 
2013 482 million due to the exercise of 
share options 
at 31 december 2014 outstanding gross 
debt interestbearing loans and borrowings 
was 10843 million 2013 10376 million 
of the gross debt outstanding at 31 
december 2014 2446 million is due within 
one year 2013 1788 million 
net debt at 31 december 2014 was 
3223 million compared to a net funds 
position of 39 million at the beginning of 
the year as a result of the net cash outflow 
as described above
offbalance sheet transactions and 
commitments 
we have no offbalance sheet arrangements 
and our derivative activities are non
speculative the table below sets out our 
minimum contractual obligations at the  
year end
net cash generated from operating  
activities was 7 058 million in the year 
ended 31 december 2014 compared with 
7 400 million in 2013 reductions in 
working capital partially offset the lower 
operating profit and higher tax payments
working capital movements were principally 
driven by general increases in trade 
payables and accruals as a result of our 
increased rd and sga spend an 
increase in the us rebate and chargeback 
liabilities as described on page 82 an 
additional year’s branded pharmaceutical 
fee and a reduction in trade receivables 
principally in japan and the us
noncash and other movements include 
512 million relating to fair value adjustments 
on contingent consideration arising from 
business combinations 
investment cash outflows of 7  125 million 
2013 3 1 12 million included 3804 million 
2013 1 158 million on completion of 
business acquisitions inclusive of bms’s 
share of the global diabetes alliance 
net fundsdebt reconciliation
2014
m
2013
m
2012
m
cash and cash equivalents 6360 9217 7701
shortterm investments 795 796 823
net derivative financial instruments 465 402 417
cash shortterm investments and derivatives 7620 10415 8941
overdraft and shortterm borrowings 1486 992 879
finance leases 108 102 84
current instalments of loans 912 766 –
loans due after one year 8337 8516 9347
loans and borrowings 10843 10376 10310
net debtfunds 3223 39 1369
payments due by period
less than 
1 year 
m 
13 years 
m 
35 years 
m
over
5 years 
m
2014
total
m
2013
total 
m 
bank loans and other borrowings
1
2978 2552 1596 10135 17261 17015
finance leases 45 76 9 – 130 119
operating leases 100 150 97 91 438 450
contracted capital expenditure 438 – – – 438 481
total 3561 2778 1702 10226 18267 18065
1
 bank loans and other borrowings include interest charges payable in the period as detailed in note 25 to the financial statements on page 175
76 astrazeneca annual report and form 20f information 2014 financial position – 2014
all data in this section is on a reported basis
summary statement of financial position
2014
m
movement
m
2013
m
movement
m
2012
m
property plant and equipment 6010 192 5818 271 6089
goodwill and intangible assets 32531 6503 26028 318 26346
inventories 1960 51 1909 152 2061
trade and other receivables 8344 1402 9746 1765 7981
trade and other payables 19877 7163 12714 2492 10222
provisions 1107 282 1389 45 1344
net income tax payable 2025 557 2582 523 2059
net deferred tax liabilities 577 1045 1622 157 1465
retirement benefit obligations 2951 690 2261 10 2271
noncurrent other investments 502 221 281 82 199
investment in joint ventures 59 59 – – –
net debtfunds 3223 3262 39 1408 1369
net assets 19646 3607 23253 693 23946
in 2014 net assets decreased by 
3607 million to 19646 million the 
decrease in net assets is broadly due to  
dividends of 3532 million and adverse 
movements on exchange taken to reserves 
of 1352 million partially offset by the 
group profit of 1235 million
business combinations 
in 2014 we completed three business 
combinations
  the acquisition of bms’s share of the 
global diabetes alliance 
  the acquisition of the rights to almirall’s 
respiratory franchise
  the acquisition of definiens
these acquisitions had a significant effect 
on the group’s balance sheet and the 
results for the year as detailed above 
assets and liabilities acquired and 
consideration for the acquisitions are 
summarised overleaf
each acquisition included elements of 
consideration that are contingent on future 
development andor sales milestones  
with both the diabetes and respiratory 
acquisitions also including royalty payments 
linked to future revenues our agreement 
with bms provides for potential further 
payments of up to 14 billion for future 
regulatory launch and salesrelated 
milestones and various salesrelated royalty 
payments up until 2025 our transaction 
with almirall includes further payments of  
up to 12 billion for future development 
launch and salesrelated milestones and 
various other salesrelated payments all 
these future payments are treated as 
contingent consideration on our balance 
sheet and are fairvalued using decision  
tree analyses with key inputs including the 
probability of success the potential for 
delays and the expected levels of future 
revenues the fair value is updated at each 
balance sheet reporting date to reflect our 
latest estimate of the probabilities of these 
key inputs given the longterm nature  
of our contingent consideration payments  
the fair value calculation includes the 
discounting of future potential payments  
to their present value using discount rates 
appropriate to the period over which 
payments are likely to be made both  
the unwind of this discount and any 
movements of the fair value of the 
underlying future payments can result in 
significant income statement movements 
as detailed in the results of operations 
section on page 74 these movements are 
treated as noncore items in our income 
statement analysis in 2014 we recorded an 
interest charge of 391 million on the 
discount unwind on contingent 
consideration arising on our business 
combinations and a net fair value uplift on 
contingent consideration of 512 million 
which resulted in a charge to our income 
statement for the same amount driven 
principally by an improved forecast for 
revenues for our diabetes franchise  
following the successful integration of  
bms’s share of the former diabetes alliance 
at 31 december 2014 the contingent 
consideration amount held on the balance 
sheet amounted to 6899 million 2013 
514 million as detailed in note 18 to the 
financial statements on page 161 further 
details of the business combinations 
including the strategic background to the 
transactions and details of certain ongoing 
relationships with bms are included in  
note 24 to the financial statements from 
page 170
77 astrazeneca annual report and form 20f information 2014
strategic report strategic report
financial review continued
intangible assets amounted to 
20981 million at 31 december 2014  
2013 16047 million intangible  
asset additions were 8548 million  
in 2014 2013 3217 million including  
product and other rights acquired in  
our acquisitions of 7 501 million 2013 
2416 million amortisation in the year  
was 2384 million 2013 1779 million 
impairment charges in the year amounted  
to 122 million 2013 2082 million 
further details of our additions to intangible 
assets and impairments recorded are 
included in note 9 to the financial 
statements from page 153 
receivables payables and provisions
trade receivables decreased by 752 million 
to 4762 million principally driven by 
reductions in japan and the us
prepayments and accrued income 
decreased by 928 million as detailed in 
our 2013 annual report in 2013 we 
modified the royalty structure under our 
global licence agreement for crestor  which 
was amended to include fixed minimum and 
maximum annual royalty payments to 
shionogi these future royalties were 
recognised within payables and as a 
prepayment the reduction in prepayments  
in 2014 is driven by the payment of one 
year’s royalties under this revised 
agreement along with a transfer of 
350 million from prepayments to property 
plant and equipment as detailed above
trade and other payables increased by 
7  163 million in 2014 to 19877 million with 
increases of 993 million in trade payables 
677 million of rebates and chargebacks 
and 5781 million in other payables 
including an increase of 6385 million in 
contingent consideration offset by a 
reduction of one year’s shionogi royalty 
payments the increase in trade payables 
was driven by our increased inyear rd 
and sga spend in the latter part of the 
year the rebates and chargebacks balance 
includes an additional year’s us branded 
pharmaceutical fee the increase in 
contingent consideration is shown in the 
table below
the decrease in provisions of 282 million  
in 2014 included 633 million of cash 
payments partially offset by 434 million  
of additional charges recorded in the year 
included within the 434 million of charges 
for the year were 254 million for our global 
restructuring initiative and 91 million in 
respect of legal charges cash payments 
included 472 million for our global 
property plant and equipment
property plant and equipment increased  
by 192 million to 6010 million additions 
of 1607 million 2013 816 million 
including 515 million 2013 8 million 
arising on business combinations were 
offset by depreciation of 776 million 2013 
906 million and disposals of 582 million 
2013 82 million property plant and 
equipment also increased due to the 
transfer of a prepayment balance of 
350 million which related to amounts  
paid to bms for fixed assets under our 
previous joint operation with bms with  
the acquisition of bms’s interest in the 
diabetes franchise we acquired the 
underlying property plant and equipment  
to which this prepayment related 
goodwill and intangible assets
the group’s goodwill of 1 1550 million 
2013 9981 million principally arose on 
the acquisition of medimmune in 2007 and 
the restructuring of our us joint venture with 
merck in 1998 goodwill of 1841 million 
arising on our acquisitions of bms’s share  
of the global diabetes alliance 1530 million 
and the rights to almirall’s respiratory 
franchise 31 1 million as detailed in note 
24 to the financial statements from page 
170 was capitalised in 2014
fair values on acquisition
bms’s share of 
diabetes alliance 
m
rights to almirall’s 
respiratory franchise
m
definiens 
group
m
total
m
assets acquired
noncurrent assets
property plant and equipment 478 37 – 515
goodwill 1530 311 – 1841
intangible assets 5746 1400 355 7501
current assets 480 24 – 504
current liabilities 278 2 – 280
noncurrent liabilities 84 11 117 212
total assets 7872 1759 238 9869
consideration 
upfront cash paid 2703 878 150 3731
contingent consideration 5169 881 88 6138
total consideration 7872 1759 238 9869
acquisition of bms’s 
share of diabetes 
alliance
m
other
m
total
m
 at 1 january 2014 – 514 514
 acquisitions 5169 969 6138
 settlements 657 – 657
 revaluations 529 17 512
 discounting 345 46 391
 foreign exchange – 1 1
 at 31 december 2014 5386 1513 6899
78 astrazeneca annual report and form 20f information 2014 example in the event of astrazeneca and 
the pension fund trustee agreeing a change 
to the current longterm investment strategy 
further details of the group’s pension 
schemes are included in note 20 to the 
financial statements from page 162
commitments and contingencies
the group has commitments and 
contingencies that are accounted for in 
accordance with the accounting policies 
described in the financial statements in  
the group accounting policies section from 
page 138 the group also has taxation 
contingencies these are described in the 
taxation section in the critical accounting 
policies and estimates section on page 85 
and in note 27 to the financial statements 
on page 187 
research and development collaboration 
payments
details of future potential rd collaboration 
payments are also included in note 27  
to the financial statements from page 182 
as detailed in note 27 to the financial 
statements payments to our collaboration 
partners may not become payable due to 
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 
the group has completed over 180 major 
or strategically important business 
development transactions over the past 
three years eight of which were accounted 
for as business acquisitions under ifrs 3 
‘business combinations’ being the 
acquisitions of bms’s share of the global 
diabetes alliance the rights to almirall’s 
respiratory franchise and the acquisition  
of definiens in 2014 pearl therapeutics 
omthera amplimmune and spirogen in 
2013 and ardea in 2012 and all others 
being inlicences strategic alliances and 
collaborations further details of our 
business acquisitions in the past three years 
are contained in note 24 to the financial 
statements from page 170 details of our 
significant externalisation transactions are 
given below
  in september 2014 astrazeneca and  
lilly entered into an agreement to jointly 
develop and commercialise azd3293  
an oral beta secretase cleaving enzyme 
bace inhibitor currently in development 
as a potential treatment for alzheimer’s 
disease azd3293 is an oral potent and 
selective small molecule inhibitor of bace 
that has been shown in phase i studies  
to significantly and dosedependently 
reduce levels of amyloid beta in the 
cerebrospinal fluid of alzheimer’s patients 
and healthy volunteers under the  
terms of the agreement lilly will pay 
astrazeneca up to 500 million in 
development and regulatory milestone 
payments astrazeneca expects to 
receive the first milestone payment of 
50 million in the first half of 2015  
the companies will equally share all  
future costs for the development and 
commercialisation of azd3293 as well  
as net global revenues postlaunch lilly 
will lead clinical development working 
with researchers from astrazeneca’s 
innovative medicines unit for 
neuroscience while astrazeneca will  
be responsible for manufacturing the 
companies will take joint responsibility  
for commercialisation of azd3293
  in april 2014 astrazeneca entered into  
a joint venture agreement with samsung 
biologics co ltd to develop a biosimilar 
using the combined capabilities of the two 
parties the agreement resulted in the 
formation of a joint venture entity based  
in the uk archigen biotech limited with 
a branch in south korea astrazeneca 
contributed 70 million in cash to the joint 
venture entity and has a 50 interest in 
the joint venture further financial details 
are contained in note 10 to the financial 
statements on page 157 
  in march 2013 astrazeneca signed  
an exclusive agreement with moderna 
therapeutics to discover develop  
and commercialise pioneering  
medicines based on messenger rna 
therapeutics for the treatment of serious 
cardiovascular metabolic and renal 
diseases as well as cancer under the 
terms of the agreement astrazeneca 
made an upfront payment of 240 million 
astrazeneca will have exclusive access  
to select any target of its choice in 
cardiometabolic and renal diseases  
as well as selected targets in oncology 
over a period of up to five years for 
subsequent development of messenger 
rna therapeutics in addition moderna 
therapeutics is entitled to an additional 
restructuring programme further details  
of the charges made against provisions  
are contained in notes 19 and 27 to the 
financial statements on page 162 and 182  
to 187  respectively
tax payable and receivable
net income tax payable has decreased by 
557 million to 2025 million principally  
due to cash tax timing differences foreign 
exchange and a 1 17 million adjustment  
in respect of prior periods following the 
settlement of the intergovernmental 
agreement of a transfer pricing matter  
the tax receivable balance of 329 million 
2013 494 million comprises tax owing  
to astrazeneca from certain governments 
expected to be received on settlements of 
transfer pricing audits and disputes see 
note 27 to the financial statements from 
page 182 and cash tax timing differences 
net deferred tax liabilities decreased by 
1045 million in the year mainly due to a 
reversal of taxable temporary differences 
additional information on the movement in 
deferred tax balances is contained in note 4 
to the financial statements from page 145
retirement benefit obligations
net retirement benefit obligations increased 
by 690 million in 2014 employer 
contributions to the pension scheme of 
184 million and beneficial exchange 
movements of 268 million were offset by 
service cost charges of 221 million net 
financing costs of 92 million and net 
remeasurement adjustments of 766 million 
driven by a reduction in the discount rate 
applied to our pension liabilities under ias 
19 partially offset by actuarial gains on our 
scheme assets
approximately 97 of the group’s 
obligations are concentrated in the uk the 
us sweden and germany in recent years 
the group has undertaken several initiatives 
to reduce its net pension obligation 
exposure for the uk defined benefit 
pension scheme which is astrazeneca’s 
largest defined benefit scheme these 
initiatives have included agreeing funding 
principles for cash contributions to be paid 
into the uk pension scheme to target a level 
of assets in excess of the current expected 
cost of providing benefits and in 2010 
amendments to the scheme to freeze 
pensionable pay at 30 june 2010 levels in 
addition to the cash contributions to be paid 
into the uk pension scheme astrazeneca 
makes contributions to an escrow account 
which is held outside the pension scheme 
the escrow account assets are payable to 
the fund in agreed circumstances for 
79 astrazeneca annual report and form 20f information 2014
strategic report strategic report
japan europe the cis the middle east 
and south africa which are covered by 
an existing agreement between fibrogen 
and astellas the astrazenecafibrogen 
joint effort will be focused on the 
development of roxadustat to treat 
anaemia in ckd and esrd and may be 
extended to other anaemia indications 
astrazeneca and fibrogen plan to 
undertake an extensive roxadustat phase 
iii development programme for the us 
and to initiate phase iii trials in china with 
anticipated regulatory filings in china in 
2016 and in the us in 2018 under the 
arrangement astrazeneca agreed to pay 
fibrogen upfront and subsequent 
noncontingent payments totalling  
350 million as well as potential 
developmentrelated milestone payments 
of up to 465 million and potential future 
salesrelated milestone payments in 
addition to tiered royalty payments on 
future sales of roxadustat in the low 20 
range additional development milestones 
will be payable for any subsequent 
indications which the companies choose 
to pursue astrazeneca will be 
responsible for the us commercialisation 
of roxadustat with fibrogen undertaking 
specified promotional activities in the 
esrd segment in this market the 
companies will also cocommercialise 
roxadustat in china where fibrogen will 
be responsible for clinical trials regulatory 
matters manufacturing and medical 
affairs and astrazeneca will oversee 
promotional activities and commercial 
distribution 
  in april 2012 astrazeneca announced  
an agreement to jointly develop and 
commercialise five monoclonal antibodies 
from amgen’s clinical inflammation 
portfolio amg 139 amg 157  amg 181 
amg 557 and brodalumab amg 827 
under the terms of the agreement 
astrazeneca made a 50 million upfront 
payment and the companies share both 
costs and profits approximately 65  
of costs for the 2012 to 2014 period are 
funded by astrazeneca thereafter  
the companies will split costs equally  
in addition astrazeneca will make 
development milestone payments up  
to launch on commercialisation amgen 
will retain a low singledigit royalty for 
brodalumab and a mid singledigit royalty 
for the rest of the portfolio after which the 
companies will share profits equally
the group determines the above business 
development transactions to be significant 
using a range of factors we look at the 
specific circumstances of the individual 
externalisation arrangement and apply 
180 million for the achievement of three 
technical milestones through this 
agreement astrazeneca has the option 
to select up to 40 drug products for 
clinical development and moderna 
therapeutics will be entitled to 
development and commercial milestone 
payments as well as royalties on drug 
sales astrazeneca will lead the 
preclinical clinical development and 
commercialisation of therapeutics 
resulting from the agreement and 
moderna therapeutics will be responsible 
for designing and manufacturing the 
messenger rna therapeutics against 
selected targets astrazeneca is currently 
progressing 19 projects across cvmd 
and oncology utilising both companies’ 
expertise significant progress has also 
been made to the technology platform 
with the focus on formulation safety and 
drug metabolism and pharmacokinetics
  in july 2013 astrazeneca entered into a 
strategic collaboration with fibrogen to 
develop and commercialise roxadustat 
fg4592 a firstinclass oral compound 
in latestage development for the 
treatment of anaemia associated with 
chronic kidney disease ckd and 
endstage renal disease esrd this 
broad collaboration focuses on the us 
china and all major markets excluding 
financial review continued
capitalisation and shareholder return 
dividend for 2014
 pence sek payment date
first interim dividend 090 531 620 15 september 2014
second interim dividend 190 1250 1562 23 march 2015
total 280 1781 2182
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 3604 6208
2011 1274 6015 280 3653 9668
2012 578 2635 280 3496 6131
2013 – – 280 3522 3522
2014 – – 280 3537
1
3537
total 6108 29170 26825 38151 67321
1
 total dividend cost estimated based upon number of shares in issue at 31 december 2014
80 astrazeneca annual report and form 20f information 2014 believes it is appropriate to continue  
the suspension of the share repurchase 
programme that was announced in  
october 2012
future prospects 
as outlined earlier in this annual report  
our strategy is focused on innovation and 
returning to growth in support of this  
we made certain choices around our  
three strategic priorities we described  
our immediate priorities midterm goals  
and longterm aspirations 
as we experience a period of patent 
expiries 
  our immediate priorities are to drive our 
onmarket revenues through investment 
in our growth platforms and portfolio  
of onmarket brands these include 
products in our three main therapy areas 
and a focus on the emerging markets and 
japan we are also pursuing business 
development and investment in rd  
we have already accelerated a number  
of projects and progressed them into 
phase iii development
  our midterm goals to 2016 are to 
progress our phase ii pipeline and to 
exploit the potential of our biologics 
portfolio 
  our longterm aspiration to 2020 and 
beyond in line with our strategic ambition 
is to achieve scientific leadership and 
sustainable growth including the launch 
of two nmes annually 
we expect 2015 revenue to decline by mid 
singledigit percent at cer compared to 
2014 consistent with its business model 
the company will continue to seek 
externalisation revenue from partnerships 
and licensing select products and 
technologies core eps is expected to 
increase in 2015 by low singledigit percent 
at cer
financial risk management
financial risk management policies
insurance
our risk management processes are 
described in risk from page 203 these 
processes enable us to identify risks that 
can be partly or entirely mitigated through 
the use of insurance we negotiate the 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 
insurance for product liability has not been 
available on commercially acceptable terms 
for several years and the group has not 
purchased in the market product liability 
insurance since february 2006
taxation
tax risk management forms an integrated 
part of the group’s 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 monitor the impact of currency on a 
portfolio basis to recognise correlation 
effect and may hedge to protect against 
significant adverse impacts on cash flow 
over the short to mediumterm we also 
hedge the currency exposure that arises 
between the booking and settlement dates 
on nonlocal currency purchases and sales 
by subsidiaries and the external dividend 
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 25 to the financial statements  
from page 174 and in risk from page 203
several quantitative and qualitative  
criteria because we consider business 
development transactions to be an 
extension of our rd strategy the expected 
total value of development payments under 
the transaction and its proportion of our 
annual rd spend both of which are 
proxies for overall rd 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 include without limitation new 
market developments new territories new 
areas of research and strategic implications
in aggregate payments capitalised under 
the group’s externalisation arrangements 
other than those detailed above amounted 
to 201 million in 2014 301 million in 2013 
and 156 million in 2012 the group 
recognised other income in respect of other 
externalisation arrangements totalling  
400 million in 2014 including 250 million 
of income from an agreement with pfizer for 
otc rights for nexium 20 million in 2013 
and 255 million in 2012
capitalisation
the total number of shares in issue at 31 
december 2014 was 1263 million 2013 
1257 million six million ordinary shares 
were issued in consideration of share option 
exercises for a total of 279 million 
shareholders’ equity decreased by  
3597 million to 19627 million at the year 
end noncontrolling interests decreased  
to 19 million 2013 29 million
dividend and share repurchases
the board has recommended a second 
interim dividend of 190 1250 pence 
1562 sek to be paid on 23 march 2015 
this brings the full year dividend to 280 
178 1 pence 2182 sek
this dividend is consistent with the 
progressive dividend policy by which the 
board intends to maintain or grow the 
dividend each year
the board regularly reviews its distribution 
policy and its overall financial strategy to 
continue to strike a balance between the 
interests of the business our financial 
creditors and our shareholders having 
regard for business investment funding the 
progressive dividend policy and meeting our 
debt service obligations the board currently 
81 astrazeneca annual report and form 20f information 2014
strategic report strategic report
programmes medicaid ‘best price’ 
contracts supplemental rebates etc 
they can be classified as follows
  chargebacks where we enter into 
arrangements under which certain 
parties typically hospitals longterm care 
facilities group purchasing organisations 
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 managedcare 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 customerby
customer 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 claims
invoices are received in the case of 
regulatory rebates and chargebacks we 
believe that we have made reasonable 
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 customers’ 
contractual performance
managedcare and group purchasing 
organisation rebate charges increased by 
812 million in 2014 2013 1321 million 
2012 160 million mainly due to the impact 
of price increases on priceprotected 
business and pricing pressure resulting in 
higher negotiated rates particularly in the 
medicare part d business
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 products are not exchanged for 
products 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 products are destroyed at the 
point of sale in the us we estimate the 
quantity and value of products 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 
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 generic launch 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 only 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
sensitivity analysis of the group’s  
exposure to exchange rate and interest rate 
movements is also detailed in note 25 to  
the financial statements from page 174
critical accounting policies  
and estimates
our financial statements are prepared in 
accordance with ifrss 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 138 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
revenue recognition
revenue is recorded at the invoiced  
amount excluding intercompany sales  
and valueadded taxes less movements  
in estimated accruals for rebates and 
chargebacks given to managedcare and 
other customers and product returns – a 
particular feature in the us 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 ip  brands and product lines  
is included in other operating income
rebates chargebacks and returns  
in the us
when invoicing sales in the us we estimate 
the rebates and chargebacks that we 
expect to pay these rebates typically arise 
from sales contracts with third party 
managedcare organisations hospitals 
longterm care facilities group purchasing 
organisations and various federal or state 
financial review continued
82 astrazeneca annual report and form 20f information 2014 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 
the closing adjustment in respect of  
prior years increased 2014 net us 
pharmaceuticals revenue by 17 2013 
increased revenue by 02 2012 increased 
revenue by 10 however taking into 
account the adjustments affecting both the 
current and the prior year 2013 revenue 
was increased by 15 and 2012 revenue 
was reduced by 08 by adjustments 
between years
we have distribution service agreements 
with major wholesaler buyers which serve  
gross to net sales – us pharmaceuticals
2014
m
2013
m
2012
m
gross sales 23301 21345 20747
chargebacks 2794 2449 2261
regulatory – us government and state programmes 1389 1435 1426
contractual – managedcare and group purchasing organisation rebates 7730 6918 5597
cash and other discounts 436 399 401
customer returns 295 112 182
other 537 341 273
net sales 10120 9691 10607
movement in provisions – us pharmaceuticals
brought 
forward at 
1 january 
2014 
m
provision for
current year 
m 
adjustment in 
respect of 
prior years 
m 
returns and
payments 
m 
carried 
forward at 
31 december
2014
m
chargebacks 355 2838 44 2692 457
regulatory – us government and state programmes 784 1544 155 1466 707
contractual – managedcare and group purchasing organisation rebates 1714 7703 27 7078 2366
cash and other discounts 32 436 – 435 33
customer returns 222 295 – 199 318
other 74 537 – 448 163
total 3181 13353 172 12318 4044
brought 
forward at 
1 january 
2013 
m
provision for
current year 
m 
adjustment in 
respect of 
prior years 
m 
returns and
payments 
m 
carried 
forward at 
31 december
2013
m
chargebacks 313 2439 10 2407 355
regulatory – us government and state programmes 825 1447 12 1476 784
contractual – managedcare and group purchasing organisation rebates 1348 6951 33 6552 1714
cash and other discounts 33 399 – 400 32
customer returns 211 99 13 101 222
other 45 341 – 312 74
total 2775 11676 22 11248 3181
brought 
forward at 
1 january 
2012 
m
provision for
current year 
m 
adjustment in 
respect of 
prior years 
m 
returns and
payments 
m 
carried 
forward at 
31 december
2012
m
chargebacks 395 2296 35 2343 313
regulatory – us government and state programmes 1290 1585 159 1891 825
contractual – managedcare and group purchasing organisation rebates 1600 5578 19 5849 1348
cash and other discounts 41 401 – 409 33
customer returns 121 117 65 92 211
other 80 273 – 308 45
total 3527 10250 110 10892 2775
83 astrazeneca annual report and form 20f information 2014
strategic report strategic report
financial review continued
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 152 the 
group including acquisitions is considered 
a single cashgenerating unit for impairment 
purposes 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 
our weighted average cost of capital  
reflects factors such as our capital structure 
and our costs of debt and equity 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 caseby
case basis
a significant portion 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 retire merck’s interests in our products  
in the us in 2008 2010 and 2014 in 
addition our recent business combinations 
as detailed in note 24 to the financial 
statements from page 170 have added 
significant product marketing and 
distribution intangible rights to our intangible 
asset portfolio we are satisfied that the 
carrying values of our intangible assets as  
at 31 december 2014 are fully justified by 
estimated future cash flows the accounting 
for our intangible assets including details of 
our arrangements with merck is fully 
explained in note 9 to the financial 
statements from page 153 
further details of the estimates and 
assumptions we make in impairment testing 
of intangible assets are included in note 9  
to the financial statements 
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 27 to the 
financial statements from page 182
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
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 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
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 ip 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  
from page 138 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
84 astrazeneca annual report and form 20f information 2014 further details of our accounting for 
postretirement benefit plans are included  
in note 20 to the financial statements  
from page 162
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 current liabilities 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 27 to the financial 
statements on page 187 
sarbanesoxley act section 404
as a consequence of our nyse listing 
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 as regards sarbanes
oxley act section 404 our approach is 
based on the committee of sponsoring 
organizations coso 2013 framework 
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 the key line  
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 2014 and the 
assessment is set out in the directors’ 
responsibilities for and report on  
internal control over financial reporting on 
page 129 kpmg audit llp has audited the 
effectiveness of our internal control over 
financial reporting at 31 december 2014 
and as noted in the auditor’s reports on 
the financial statements and on internal 
control over financial reporting sarbanes
oxley act section 404 on page 130 their 
report is unqualified 
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 
in applying ias 19 ‘employee benefits’  
we recognise all actuarial gains and losses 
immediately through other comprehensive 
income 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 mortgage bonds as the 
market in highquality corporate 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 longterm price inflation 
and future salary and pension increases
strategic report
the strategic report which has  
been prepared in accordance with  
the requirements of the companies 
act 2006 comprises the following 
sections
  astrazeneca at a glance
  chairman’s statement
  chief executive officer’s review
  strategy
  therapy area review
  business review
  resources review
  financial review
and has been approved and signed 
on behalf of the board 
a c n kemp 
company secretary 
5 february 2015
85 astrazeneca annual report and form 20f information 2014
strategic report corporate governance report
corporate governance
  under 3 years 4 
leif johansson  
geneviève berger  
ann cairns 
graham chipchase 
  3 – 6 y e a r s 2 
bruce burlington 
shriti vadera 
  6 – 9 y e a r s 4 
jeanphilippe courtois 
rudy markham  
nancy rothwell 
john varley
  9  y e a r s 1 
marcus wallenberg
 american 1
 british 6
 french 4
 swedish 2
length of tenure of  
nonexecutive directors
directors’ nationalities
 male 9
 female 4
gender split of directors
dear shareholder 
this corporate governance report 
describes how the group is organised 
including the overall structure and 
principal roles and responsibilities of the 
board its committees and the set 
board composition
the membership of the board at  
31 december 2014 and information about 
individual directors is contained in the board 
of directors section on pages 28 and 29
corporate governance
we have prepared this annual report  
with reference to the uk corporate 
governance code published by the uk 
financial reporting council frc in 
september 2012
1

this corporate governance report 
together with other sections of this annual 
report describes how we apply the main 
principles of good governance in the uk 
corporate governance code we have 
complied throughout the accounting period 
with the provisions of the uk corporate 
governance code which is available on  
the frc’s website wwwfrccouk 
leadership and responsibilities
the roles of chairman and ceo are split 
leif johansson our nonexecutive 
chairman is responsible for leadership of 
the board our ceo pascal soriot leads 
the set and has executive responsibility  
for running our business the board 
comprises 1 1 nonexecutive directors 
including the chairman and two executive 
directors – the ceo pascal soriot and the 
cfo marc dunoyer
all directors are collectively responsible  
for the success of the group in addition  
the nonexecutive directors are responsible 
for exercising independent objective 
judgement in respect of board decisions 
and for scrutinising and challenging 
management the nonexecutive directors 
also have various responsibilities concerning 
the integrity of financial information internal 
controls and risk management
the board conducts an annual review  
of the group’s overall strategy the ceo  
cfo and set take the lead in developing 
our strategy which is then reviewed 
constructively challenged and approved  
by the board
john varley who joined the board as  
a nonexecutive director in 2006 was 
appointed as our senior independent 
nonexecutive director in april 2012  
the role of the senior independent 
nonexecutive director is to serve as  
a sounding board for the chairman and  
as an intermediary for the other directors 
when necessary the senior independent 
nonexecutive 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 on the following 
pages in addition there may from time to 
time be constituted ad hoc board 
committees for specific projects or tasks  
1  
the frc published an updated uk corporate governance 
code in september 2014 applicable to reporting  
periods beginning on or after 1 october 2014 the group 
expects to report against this edition for the year ending  
31 december 2015
86 astrazeneca annual report and form 20f information 2014 all directors are 
collectively responsible  
for the success of the 
group in addition the 
nonexecutive directors 
are responsible for 
exercising independent 
objective judgement…”
operation of the board 
the board is responsible for setting our 
strategy and policies overseeing risk  
and corporate governance and monitoring 
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 
is maintained and that their issues and 
concerns are understood and considered
the board held 19 meetings in 2014 
including its usual annual strategy review 
two meetings were telephone meetings 
which were convened at short notice at 
which business development transactions 
were discussed and approved eleven  
meetings related to the approaches  
from pfizer during the year all of the six 
scheduled meetings took place in london 
uk with the exception of the meeting in 
september 2014 which took place at 
astrazeneca’s offices in shanghai  
china the board is currently scheduled  
to meet six times in 2015 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 giving details of business 
performance and 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 attend board meetings 
regularly and board members 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 succession 
planning and diversity
the nomination and governance 
committee and where appropriate the full 
board regularly review the composition of 
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 approval of 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 delegated by the board to its 
committees or the ceo
the ceo is responsible to the board for  
the management development and 
performance of our business for those 
matters for 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 that 
authority in respect of our business
the roles of the board board committees 
chairman and ceo are documented as  
are the board’s reserved powers and 
delegated authorities
the board and the status of succession  
to both senior executive management and 
board level 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 28  
and 29 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 board 
recognises in particular the importance  
of gender diversity currently 36 of the 
company’s nonexecutive directors are 
women and women make up 31 of the full 
board although it has not set any specific 
measurable objectives the board intends  
to continue with its current approach to 
diversity in all its aspects while at the same 
time seeking board members of the highest 
calibre and with the necessary experience 
and skills to meet the needs of the company 
and its shareholders information about our 
approach to diversity in the organisation 
below board level can be found in 
employees from page 62 
the following changes to the composition  
of the board have occurred during the 
period covered by this annual report
  ann cairns was elected as a non
executive director and appointed  
as a member of the audit committee  
with effect from 24 april 2014
  graham chipchase was appointed as a 
member of the remuneration committee 
with effect from 6 may 2014 and stepped 
down from the audit committee with 
effect from the same date
independence of the nonexecutive 
directors
during 2014 the board considered the 
independence of each nonexecutive 
director for the purposes of the uk 
corporate governance code 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 leif johansson 
87 astrazeneca annual report and form 20f information 2014
corporate governance corporate governance
corporate governance report continued
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 are 
reviewed annually by the board the board 
believes that this system operates effectively
appointments to the board
the nomination and governance 
committee section from page 91 provides 
information about the appointment  
process for new directors
newly appointed directors are provided  
comprehensive 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  
15 days a year as an absolute minimum  
to the group’s business in practice board 
was considered by the board to be 
independent upon his appointment as 
chairman in accordance with the uk 
corporate governance code 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 he is a nonexecutive 
director of investor ab which has a 408 
interest in the issued share capital of the 
company as at 5 february 2015 a number 
of wallenberg charitable foundations have 
connections to mr wallenberg and to 
investor ab for these reasons the board 
does not believe that he can be determined 
independent under the uk corporate 
governance code 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 in april 2010 he was 
appointed as a member of the science 
committee reflecting his interest in 
innovation and rd knowledge of the 
history of the company and its scientific 
heritage and culture and his broad 
experience of other industries and 
businesses in which innovation and rd  
are important determinants of success
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  
members’ time commitment 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 and site visits
on occasions when a director is 
unavoidably absent from a board or  
board committee meeting for example 
where a meeting clashes with their existing 
commitments they still receive and review 
the papers for the meeting and typically 
provide verbal or written input ahead of the 
meeting usually through the chairman of 
the board or the chairman of the relevant 
board committee so that their views are 
made known and considered at the 
meeting 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  
board committee membership
name audit remuneration
nomination 
and
governance science independent
1
geneviève berger ✓ ✓
bruce burlington ✓ ✓ ✓
ann cairns ✓ ✓
graham chipchase ✓ ✓
jeanphilippe courtois ✓ ✓
marc dunoyer
na
leif johansson ✓ chair na
2
rudy markham
chair ✓ ✓ ✓
nancy rothwell ✓ ✓ chair ✓
pascal soriot
na
shriti vadera ✓ ✓
john varley
chair ✓ ✓
marcus wallenberg ✓
1
 as determined by the board for the purposes of the uk corporate governance code
2
  leif johansson was considered by the board to be independent upon his appointment as chairman in accordance with the uk corporate governance code the test of independence is not appropriate 
in relation to the chairman after his appointment
88 astrazeneca annual report and form 20f information 2014 other than these limited instances lintstock 
is not a supplier to the company and was 
able to act as a robust and independent 
external facilitator for the board 
performance evaluation
the 2014 evaluation involved a series  
of short webbased questionnaires and 
individual conversations between lintstock 
and each board member following which 
lintstock prepared a report of its findings  
for the chairman subsequently the main 
themes of the report were discussed 
between the chairman and individual 
directors and collectively at the board 
meeting in december 2014 a number  
of areas were reviewed including the 
composition of the board and expertise  
of board members the dynamics among 
board members and between the board 
and management the effectiveness of 
board oversight with particular focus on 
strategy and succession planning how the 
board handled the approaches from pfizer 
and the board’s priorities for 2015 overall  
it was concluded that the board operates 
effectively and in an open manner and no 
significant problems were raised some 
improvements to ways of working were 
proposed such as the way in which the 
nomination and governance committee 
and the remuneration committee report 
back to the full board and how the board 
makes use of its informal time outside  
board meetings as part of each director’s 
individual discussion with the chairman his 
or her contribution to the work of the board 
and personal development needs were 
considered each director continues to 
an effective contribution and that 
governance requirements are considered 
and implemented
the company maintained directors’ and 
officers’ liability insurance cover throughout 
2014 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
during the year the board conducted the 
annual evaluation of its own performance 
and that of its committees and individual 
directors this was facilitated by lintstock 
ltd lintstock a londonbased corporate 
advisory firm that provides objective and 
independent counsel to leading european 
companies for a number of years 
lintstock has supplied software and 
services to the company secretary’s team 
for the webbased questionnaires used  
for internal board performance evaluations 
and for the management of insider lists 
perform effectively and to demonstrate 
commitment to his or her role in addition 
led by the senior independent non
executive director the other nonexecutive 
directors absent the chairman evaluated 
the performance of the chairman the 
reviews of the board’s committees did not 
raise any significant problems and 
concluded that the committees are 
operating effectively
the board intends to continue to comply 
with the uk corporate governance code 
guidance that the evaluation should be 
externally facilitated at least every three 
years and expects to commission the next 
externally facilitated review in 2017 
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 of the 
directors will retire at the agm in april 2015 
the notice of agm will give details of those 
directors seeking reelection
accountability
risk management and internal control
the board has overall responsibility for  
our system of internal controls and risk 
management policies and has an  
ongoing responsibility for reviewing their 
effectiveness during 2014 the directors 
continued to review the effectiveness of  
our system of controls risk management 
and high level internal control processes 
these reviews included an assessment  
of internal controls and in particular 
board and board committee meeting attendance in 2014 
board meetings board committee meetings
name scheduled unscheduled
1
in relation to
pfizer
2
total audit remuneration
nomination 
and 
governance science
geneviève berger 6 6 2 2 11 11 19 19 4 5
bruce burlington 6 6 1 2 10 11 17 19 5 5 5 5
ann cairns
3
4 4 2 2 8 8 14 14 3 3
graham chipchase
4
6 6 2 2 6 11 14 19 2 2 7 7
jeanphilippe courtois 6 6 1 2 9 11 16 19 5 5
marc dunoyer 6 6 2 2 11 11 19 19
leif johansson 6 6 2 2 11 11 19 19 13 13 5 5
rudy markham 6 6 1 2 11 11 18 19 5 5 12 13 5 5
nancy rothwell 5 6 2 2 11 11 18 19 9 13 5 5 5 5
pascal soriot 6 6 2 2 11 11 19 19
shriti vadera 6 6 2 2 11 11 19 19 5 5
john varley 6 6 2 2 9 11 17 19 13 13 5 5
marcus wallenberg 5 6 2 2 11 11 18 19 3 5
note number in brackets denotes number of meetings during the year that board members were entitled to attend 
1
 the board held six scheduled meetings and two unscheduled meetings convened at short notice at which business development transactions were discussed and approved
2
 the board held 11 meetings during the year in relation to the approaches from pfizer
3
 ann cairns was elected as a nonexecutive director and appointed as a member of the audit committee with effect from 24 april 2014
4
 graham chipchase was appointed as a member of the remuneration committee and stepped down from the audit committee with effect from 6 may 2014
89 astrazeneca annual report and form 20f information 2014
corporate governance corporate governance
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 our corporate website 
wwwastrazenecacom which contains 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 while recognising and 
respecting that some shareholders 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 
we have frequent discussions with 
institutional shareholders on a range of 
issues in addition to holding discussions 
with groups of shareholders we also hold 
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 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 during 2014 
the chairman the senior independent 
nonexecutive director the ceo and the 
cfo held numerous meetings with our 
largest institutional shareholders in relation 
to the approaches from pfizer as discussed 
financial operational and compliance 
controls and risk management and their 
effectiveness supported by management 
assurance of the maintenance of controls 
reports from ia 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
the internal control framework was in 
operation throughout 2014 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 frc’s guidance entitled 
‘guidance on risk management internal 
control and related financial and business 
reporting’ and in the view of the directors 
no significant deficiencies have been 
identified in the system
more information about the ways in which 
we manage our business risks is set out  
in risk from page 203 which also describes 
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 governance and remuneration from 
page 26 and in more detail in the directors’ 
remuneration report from page 100
policy on external appointments and 
retention of fees
subject to specific board approval 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 that such 
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
relations with shareholders
in our quarterly half yearly and annual 
financial and business reporting to 
shareholders and other interested parties 
above the senior independent non
executive director john varley 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 board ordinarily attends 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
pfizer’s approaches
on 28 april 2014 pfizer issued a statement 
regarding a possible offer for the company 
under rule 24 of the city code on 
takeovers and mergers the ‘takeover 
code’ and confirmed that a preliminary 
nonbinding indication of interest had been 
submitted to the board in january 2014 
regarding a possible merger transaction  
on the same date the company 
responded issuing a statement that absent 
a specific and attractive proposal it was  
not appropriate to engage in discussions 
with pfizer
on 2 may 2014 pfizer made a further 
announcement of a possible offer for  
the company under rule 24 of the 
takeover code the company made an 
announcement on the same date stating 
that the board had met and considered  
the approach from pfizer and had rejected  
it on the basis that the financial and other 
terms described in the proposal were 
inadequate substantially undervalued the 
company and were not a basis on which  
to engage with pfizer
on 16 may 2014 pfizer made a third 
proposal of £5350 per share which the 
board rejected on 17 may
on 18 may 2014 pfizer announced  
a ‘final proposal’ to astrazeneca under  
rule 24 of the takeover code on 19 may 
the company issued a statement noting  
that the board had rejected pfizer’s final 
proposal on the basis that it still undervalued 
the company and its attractive prospects 
with a statement from the chairman saying
corporate governance report continued
90 astrazeneca annual report and form 20f information 2014 we have rejected pfizer’s final proposal 
because it is inadequate and would 
present significant risks for shareholders 
while also having serious consequences 
for the company our employees and the 
lifesciences sector in the uk sweden 
and the us”
on 26 may 2014 pfizer made an 
announcement under rule 28 of the 
takeover code stating that it did not intend 
to make an offer for astrazeneca the 
company made an announcement on  
the same date with a statement from the 
chairman saying 
“we note pfizer’s confirmation that it no 
longer intends to make an offer for 
astrazeneca we welcome the opportunity 
to continue building on the momentum  
we have already demonstrated as an 
independent company we are fully 
focused on the delivery of our strategy we 
have attractive growth prospects and a 
rapidly progressing pipeline in the coming 
months we anticipate positive news flow 
across our core therapeutic areas which 
underpins our confidence in the longterm 
prospects of the business the board is 
grateful to pascal his management team 
and to all of our employees for their 
dedication and focus over a period of 
uncertainty astrazeneca has a culture  
of innovation with science at the heart of 
everything we do i believe this will create 
significant value for our shareholders 
employees and patients who will benefit 
from our lifechanging medicines”
audit committee
the principal role of the audit committee  
is to provide assurance to the board in the 
following areas the integrity of our financial 
reporting and internal controls over financial 
“pascal soriot marc dunoyer and i had  
a lengthy discussion with pfizer over the 
weekend about the proposal pfizer made 
on friday evening at a value of £5350  
per share during this discussion pfizer 
said that it could consider only minor 
improvements in the financial terms of the 
friday proposal in response we indicated 
even assuming that other key aspects  
of any proposal had been satisfactory  
that the price at which the board of 
astrazeneca would be prepared to 
provide a recommendation would have  
to be more than 10 above the level 
contained in pfizer’s friday proposal the 
final proposal is a minor improvement 
which continues to fall short of the board’s 
view of value and has been rejected
pfizer’s approach throughout its pursuit  
of astrazeneca appears to have been 
fundamentally driven by the corporate 
financial benefits to its shareholders of 
cost savings and tax minimisation from 
our first meeting in january to our latest 
discussion yesterday and in the numerous 
phone calls in between pfizer has failed  
to make a compelling strategic business 
or value case the board is firm in its 
conviction as to the appropriate terms  
to recommend to shareholders
astrazeneca has created a culture of 
innovation with science at the heart of its 
operations which will continue to create 
significant value for patients shareholders 
and all stakeholders of astrazeneca
as an independent company the entire 
value of astrazeneca’s pipeline will  
accrue to our shareholders under  
pfizer’s final proposal this value would  
be significantly diluted
matters our internal controls over 
nonfinancial matters compliance with laws 
and our code of conduct the company’s 
relationship with its external auditor and  
the appropriateness of the company’s  
risk management framework in each case 
with the ultimate aim of protecting our 
shareholders’ interests 
  audit committee report from page 96
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 
nonexecutive director and in the absence 
of the chairman no director is involved  
in deciding his or her own remuneration 
  directors’ remuneration report  
from page 100
nomination and governance 
committee
the nomination and governance 
committee’s role is to recommend to the 
board any new board appointments and  
to consider more broadly succession plans 
at board level it reviews the composition  
of the board using a matrix that records  
the skills and experience of current board 
members comparing this with the skills and 
experience it believes are appropriate to the 
company’s overall business and strategic 
needs both now and in the future 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 
pfizer’s approaches
timeline of events
25 november 2013 pfizer makes initial approach to astrazeneca
5 january 2014 pfizer makes first proposal £4661
1

12 january 2014 the board rejects pfizer’s first proposal
28 april 2014 pfizer issues statement of interest ‘put up or shut up’ pusu period starts
2 may 2014 pfizer makes second proposal £5000
1

2 may 2014 the board rejects pfizer’s second proposal
16 may 2014 pfizer makes third proposal £5350
1

17 may 2014 the board rejects pfizer’s third proposal
18 may 2014 pfizer issues final proposal £5500
1

19 may 2014 the board rejects pfizer’s final proposal
20 may 2014 the board clarifies pfizer’s final proposal and pfizer clarifies its proposal
26 may 2014 pfizer withdraws and pusu period expires
26 november 2014 expiration of sixmonth period postpusu deadline
1
 indicative value per share comprised of part cash and part pfizer stock
91 astrazeneca annual report and form 20f information 2014
corporate governance corporate governance
corporate governance report continued
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 we deploy 
  the decisionmaking processes for  
rd projects and programmes
  the quality of our scientists and their 
career opportunities and talent 
development
  benchmarking against industry and 
scientific best practice where 
appropriate
the science committee periodically reviews 
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 
science committee does not review 
individual rd projects but does review  
on behalf of the board the rd aspects  
of specific business development or 
acquisition proposals and advises the  
board on its conclusions
during 2014 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 science 
committee geneviève berger bruce 
burlington and marcus wallenberg the 
evp  gmd the evp  imed and the evp  
medimmune attended meetings of the 
science committee in 2014 the 
vicepresident imed operations acts as 
secretary to the science committee
the science committee met twice in 
person in 2014 in london and in alderley 
park and held three other meetings all of 
which were by telephone to review specific 
business development or acquisition 
proposals 
the science committee’s terms of 
reference are available on our website 
wwwastrazenecacom
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 
experience measured against objective 
criteria with care taken to ensure that 
appointees have enough time to devote  
to our business 
the nomination and governance 
committee also advises the board 
periodically on significant developments  
in corporate governance and the 
company’s compliance with the  
uk corporate governance code
during 2014 the chairman of the 
nomination and governance committee 
was leif johansson the members of the 
nomination and governance committee 
were rudy markham nancy rothwell  
and john varley each member is a 
nonexecutive director and considered 
independent by the board the company 
secretary acts as secretary to the 
nomination and governance committee
the nomination and governance 
committee considers both planned and 
unplanned unanticipated succession 
scenarios and met five times in 2014  
as part of routine succession planning  
for nonexecutive director roles during the 
year mwm consulting and the zygos 
partnership assisted the nomination and 
governance committee with searches for 
new nonexecutive directors one of those 
searches culminated in a recommendation 
from the committee to the board to 
propose ann cairns for election by 
shareholders as a new nonexecutive 
director at the agm in 2014 neither mwm 
consulting nor the zygos partnership has 
any other connection to the company 
during 2014 the nomination and 
governance committee also undertook 
routine and longterm succession planning 
work in respect of the role of ceo with the 
assistance of spencer stuart spencer 
stuart undertakes executive search 
assignments for the company periodically
the attendance record of the nomination 
and governance committee’s members is 
set out on page 89
the nomination and governance 
committee’s terms of reference are available 
on our website wwwastrazenecacom
science committee
the science committee’s core role is 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 
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 opposite
the directors’ assessment of the 
effectiveness of internal control over  
financial reporting is set out in directors’ 
responsibilities for and report on internal 
control over financial reporting in the 
financial statements on page 129
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 applicable  
to foreign private issuers 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
business organisation
senior executive team
the ceo is responsible for establishing and 
chairs the set the set normally meets 
once a month or as otherwise required by 
business need to consider major business 
issues and makes recommendations to the 
ceo typically it also reviews in advance  
of submission to the board those matters 
which are to be submitted to the board for 
review and decision 
in addition to the ceo cfo general 
counsel and chief compliance officer  
the set comprises nine evps representing 
imed medimmune gmd north america 
international europe gpps operations  
 information services and human 
resources the company secretary acts  
as secretary to the set
92 astrazeneca annual report and form 20f information 2014   decision to invest in lifecycle 
management activities for the latestage 
assets
  decision to invest in latestage business 
development opportunities 
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 disclosure committee in 2014 were 
the cfo who chaired the disclosure 
committee the evp  gmd who is also  
the company’s chief medical officer the 
general counsel the vicepresident  
global communications the vicepresident 
investor relations and the vicepresident 
group financial reporting the deputy 
company secretary acted as secretary to 
the disclosure committee the disclosure 
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 internal audit  
services ia 
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 ia with whom it provides 
assurance reporting to the audit 
committee during 2015 the global 
compliance function will continue to focus 
on ensuring the delivery of an aligned 
early stage product committees espcs 
and late stage product committee 
lspc 
the espcs and lspc were established  
in 2013
early stage product committees 
the espcs are senior level crossfunctional 
governance bodies with accountability for 
oversight of our earlystage small molecule 
and biologics portfolio to proof of concept 
stage the evps of our two biotech units 
imed and medimmune chair our espcs 
the espcs seek to deliver a flow of 
products to gmd for phase iii development 
through to launch the espcs also seek  
to maximise the value of our internal and 
external rd investments through robust 
transparent and wellinformed decision 
making that drives business performance 
and accountability 
specifically the espcs have responsibility 
for the following 
  approving earlystage investment 
decisions 
  prioritising the respective portfolios
  licensing activity for products in phase i 
and earlier
  delivering internal and external 
opportunities
  reviewing allocation of rd resources
late stage product committee 
the lspc is also a senior level governance 
body accountable for the quality of the 
portfolio postphase iii investment decision 
it was formed in early 2013 replacing three 
committees in a move to streamline 
development project governance jointly 
chaired by the evps of gmd and gpps 
members include as appropriate members 
of the set including the ceo and cfo  
and members of the gmd and gpps 
leadership teams
the lspc seeks to maximise the  
value of our investments in the latestage 
portfolio also ensuring wellinformed  
and robust decision making specific 
accountabilities include
  approval of the criteria supporting proof  
of concept
  decision to invest in phase iii development 
based on agreement of commercial 
opportunity and our plans to develop the 
medicine
  evaluation of the outcome of the 
development programme and decision to 
proceed to regulatory filing
approach to compliance that addresses  
key risk areas across the business 
  risk from page 203
global compliance provides direct 
assurance to the audit committee on 
matters concerning compliance issues 
including an analysis of compliance 
breaches complementing this ia 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
ia is established by the audit committee  
on behalf of the board and acts as an 
independent and objective assurance 
function guided by a philosophy of adding 
value to improve the operations of the 
group the scope of ia’s responsibilities 
encompasses but is not limited to the 
examination and evaluation of the adequacy 
and effectiveness of the group’s 
governance risk management and internal 
control processes in relation to the group’s 
defined goals and objectives
internal control objectives considered by  
ia include 
  consistency of operations or programmes 
with established objectives and goals and 
effective performance 
  effectiveness and efficiency of operations 
and employment of resources 
  compliance with significant policies 
plans procedures laws and regulations 
  reliability and integrity of management 
and financial information processes 
including the means to identify measure 
classify and report such information
  safeguarding of assets 
based on its activity ia is responsible for 
reporting significant risk exposures and 
control issues identified to the board and  
to senior management including fraud  
risks governance issues and other  
matters needed or requested by the audit 
committee it may also evaluate specific 
operations at the request of the audit 
committee or management as appropriate 
code of conduct
our code of conduct the code which is 
available on our website wwwastrazeneca
com applies worldwide to all fulltime and 
parttime directors officers employees and 
temporary staff in all companies within our 
93 astrazeneca annual report and form 20f information 2014
corporate governance corporate governance
corporate governance report continued
our global policies supplement the code 
they provide clear and comprehensive 
guidance in key ethical compliance and 
corporate responsibility risk areas
other matters
corporate governance statement under 
the uk disclosure and transparency 
rules dtr
the disclosures that fulfil the requirements 
of a corporate governance statement under 
the dtr 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 
  articles 
  amendments to the articles 
  shareholder information from page 232  
and corporate information from page 237
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 principal subsidiaries 
in the financial statements on page 189
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 algeria scientific 
office angola azerbaijan belarus 
bulgaria chile costa rica croatia 
cuba georgia ghana scientific office 
jordan kazakhstan nigeria romania 
russia saudi arabia scientific office 
serbia and montenegro slovenia syria 
and ukraine
  astrazeneca ab egypt scientific office 
slovakia and the united arab emirates
  astrazeneca singapore pte limited 
vietnam 
distributions to shareholders – dividends 
for 2014
details of our distribution policy are set out 
in the financial review on page 81 and 
notes 22 and 23 to the financial statements 
on page 169 
the company’s dividend for 2014 of 280 
178 1 pence sek 2182 per ordinary 
share amount to in aggregate a total 
group a finance code complements the 
code 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 this reinforces the 
importance of the integrity of the group’s 
financial statements the reliability of the 
accounting records on which they are 
based and the robustness of the relevant 
controls and processes 
the code is at the core of our compliance 
programme it has been translated into over 
40 languages and employees have access 
to an electronic copy it provides clear 
direction as to how our commitment to 
honesty and integrity is to be realised in 
consistent actions across all areas of the 
business compliance with the code is 
mandatory and every employee receives 
training on it every employee is required  
to comply with local laws and regulations  
as well as applicable national and 
international codes we always seek  
to operate at the highest standards the 
code is reviewed periodically and updated 
to take account of changing legal and 
regulatory obligations 
the code contains information on how  
to report possible violations through our 
helpline which includes the azethics 
telephone lines the azethics website and 
the global compliance email and postal 
addresses described in the code anyone 
who raises a potential breach in good faith  
is fully supported by management we  
take all alleged compliance breaches  
and concerns extremely seriously and 
investigate them and report the outcome of 
such investigations to the audit committee 
as appropriate 
in 2014 247 reports of alleged compliance 
breaches or other ethical concerns were 
made through the helpline in 2013 there 
were 149 reports however during 2014  
we extended our recording of helpline 
cases to include reports made by any other 
anonymous route that could be considered 
whistleblowing and this change accounts 
at least in part for the increase from 2013  
to 2014 the majority of cases come to  
our attention through management and 
selfreporting which can be seen as an 
indication that employees are more 
comfortable in raising their concerns  
with line managers local hr legal or 
compliance as recommended in the code 
and reinforced in the 2014 code training
dividend payment to shareholders of 
3521 million an employee share trust 
astrazeneca share trust limited waived  
its right to a dividend on the ordinary  
shares that it holds and instead received  
a nominal dividend 
a shareholders’ resolution was passed  
at the 2014 agm authorising the company 
to purchase its own shares the company 
did not repurchase any of its own shares  
in 2014
going concern accounting basis 
information on the business environment in 
which astrazeneca operates including the 
factors underpinning the industry’s future 
growth prospects is included in the 
strategic report details of the product 
portfolio of the group are contained in both 
the strategic report in the therapy area 
review from page 32 and the directors’ 
report information on patent expiry dates 
for key marketed products is included  
in patent expiries from page 201 our 
approach to product development and our 
development pipeline are also covered in 
detail with additional information by therapy 
area in the strategic report
the financial position of the group its  
cash flows liquidity position and borrowing 
facilities are described in the financial 
review from page 70 in addition note 25  
to the financial statements from page 174 
includes the group’s objectives policies  
and processes for managing capital 
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 16 and 17 to the financial 
statements from page 159
the group has considerable financial 
resources available as at 31 december 
2014 the group had 7 0 billion in financial 
resources cash balances of 64 billion  
and undrawn committed bank facilities of 
30 billion which are available until april 
2019 with only 24 billion of debt due 
within one year the group’s revenues are 
largely derived from sales of products that 
are covered by patents which provide  
a relatively high level of resilience and 
predictability to cash inflows although  
our revenue is expected to continue to  
be significantly impacted by the expiry of 
patents over the medium term in addition 
government price interventions in response 
to budgetary constraints are expected to 
94 astrazeneca annual report and form 20f information 2014 donations and other political expenditure  
in broad terms a resolution will be put to 
shareholders at the 2015 agm similar to 
that passed at the 2014 agm to authorise 
the company and its subsidiaries to 
  make donations to political parties or 
independent election candidates
  make donations to political organisations 
other than political parties
  incur political expenditure up to an 
aggregate limit of 250000
corporate political contributions in the us 
are permitted in defined circumstances 
under the first amendment of the us 
constitution and are subject to both federal 
and state laws and regulations in 2014 the 
group’s us legal entities made contributions 
amounting in aggregate to 1650200 
2013 1 147 950 to national political 
organisations statelevel political party 
committees and to campaign committees 
of various state candidates no corporate 
donations were made at the federal level 
and all contributions were made only where 
allowed by us federal and state law we 
publicly disclose details of our corporate us 
political contributions which can be found 
on our website wwwastrazenecauscom
responsibilitytransparency the annual 
corporate contributions budget is reviewed 
and approved by the deputy general 
counsel north america the us vice
president corporate affairs and the 
president of our us business to ensure 
robust governance and oversight 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 
the notes to the financial statements 
including note 25 from page 174 include 
further information on our use of financial 
instruments
continue to adversely affect revenues in 
many of our mature markets however we 
anticipate new revenue streams from both 
recently launched medicines and products 
in development and the group has a  
wide diversity of customers and suppliers 
across geographic areas consequently  
the directors believe that overall the  
group is well placed to manage its business 
risks successfully
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
changes in share capital 
changes in the company’s ordinary share 
capital during 2014 including details of  
the allotment of new shares under the 
company’s share plans are given in note 
22 to the financial statements on page 169
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 because each ordinary share 
has a nominal value of 025 such holding 
must be obtained within two months of the 
date of the director’s appointment at 31 
december 2014 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 directors’ 
interests in shares on page 1 12 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 directors’ 
interests in shares on page 1 12
political donations 
neither the company nor its subsidiaries 
made any eu political donations or incurred 
any eu political expenditure in 2014 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 
annual general meeting 
the company’s agm will be held on 24 
april 2015 the meeting place will be in 
london uk 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 24 april 2015 for the reappointment  
of kpmg llp as auditor of the company 
the external auditor has undertaken various 
nonaudit work for us during 2014 more 
information about this work and the audit 
and nonaudit fees that we have paid are  
set out in note 29 to the financial 
statements on page 188 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 report from page 96 
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 2014
directors’ report 
the directors’ report which has been 
prepared in accordance with the 
requirements of the companies act 2006 
comprises the following sections
  corporate governance report
  audit committee report
  development pipeline
  responsible business 
  shareholder information
  corporate information
and has been signed on behalf of 
the board
the board considers this annual report 
taken as a whole to be fair balanced  
and understandable and provides the 
necessary information for shareholders  
to assess astrazeneca’s performance 
business model and strategy
a c n kemp 
company secretary 
5 february 2015
 
95 astrazeneca annual report and form 20f information 2014
corporate governance corporate governance
audit committee report
dear shareholder
in this report we describe the work  
of the audit committee during the year 
and highlight the significant issues 
considered in 2014 our priorities were 
once again sound financial reporting 
and compliance with our code of 
conduct which are considered below 
considered and altered the scope of its 
external audit in 2014 to match the changing 
dynamics of the group accounting for  
the business combinations consummated  
in the year was an area of focus principally 
our acquisition of bms’s interest in the 
diabetes alliance and the strategic 
transaction with almirall 
the company is involved with ip litigation 
which is a feature of the pharmaceutical 
industry and a number of government 
investigations and is a defendant in certain 
product liability and antitrust actions the 
audit committee receives a regular update 
from the general counsel on the status of 
those litigation matters that might result in 
fines or damages against the group to 
assess whether provisions should be taken 
and if so when and for what amounts
compliance with the code of conduct
the audit committee has oversight of the 
company’s responsibilities under a us 
corporate integrity agreement cia which  
is now in its final year in 2014 we received 
quarterly updates from the us compliance 
officer on our compliance with the cia 
compliance with our code of conduct in 
emerging markets particularly in russia  
and china has been an area of continuing 
focus for the audit committee in 2014 in 
september the board visited our marketing 
company based in shanghai china we 
discussed the challenges and opportunities 
of china which is one of astrazeneca’s 
fastest growing markets we talked to 
members of management including our 
local and regional compliance officers about 
the principal duties of the audit committee 
are to provide assurance to the board  
as part of the board’s stewardship and 
protection of our shareholders’ interests on 
  the integrity of our financial reporting  
and internal controls over financial matters
  the effectiveness of our internal controls 
over nonfinancial matters and 
compliance with laws and our code  
of conduct 
  the quality of the company’s relationship 
with its external auditor
  the role resources and effectiveness of 
the company’s internal audit function
  the effectiveness of the company’s risk 
management framework 
financial reporting
robust financial reporting is underpinned by 
welldesigned internal controls appropriate 
accounting practices and policies and good 
judgement the audit committee reviews 
at least quarterly the company’s significant 
accounting matters and where appropriate 
challenges management’s decisions before 
approving the accounting policies applied 
in 2014 we looked in more detail at the 
appropriateness of our revenue recognition 
practices and policies we also considered 
our restructuring and other related charges 
as we go through a period of significant 
reorganisation throughout the group how 
those charges benchmark against our 
pharmaceutical peer group and the 
robustness of our processes to ensure that 
charges are appropriately accounted for  
as core or noncore our external auditor 
after discussion with the audit committee 
astrazeneca’s performance and approach 
to operating ethically within the law and in 
accordance with our global code of 
conduct in china during the course of the 
year we received and discussed quarterly 
reports from the chief compliance officer 
on compliance in all areas of our business
engagement with senior leaders
during 2014 the committee took the 
opportunity to extend its interactions with 
members of management below the set  
in particular it held meetings with the senior 
leadership teams of internal audit services 
ia isit and finance it takes a special 
interest in the strength and depth of the 
finance organisation and talent development 
within that function
we value dialogue with our shareholders 
and welcome your feedback on this audit 
committee report
yours sincerely
rudy markham 
chairman of the audit committee
96 astrazeneca annual report and form 20f information 2014 calls between audit committee meetings 
with each of the cfo the chief compliance 
officer the vicepresident ia and the lead 
partner of the external auditor
the audit committee is currently scheduled 
to meet five times in 2015 and will meet at 
such other times as may be required
terms of reference
the core terms of reference of the audit 
committee which are available on our 
website wwwastrazenecacom include 
reviewing and reporting to the board on
  matters relating to the audit plans  
of the external auditor and ia 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 including the critical estimates 
and judgements contained in our 
reporting 
  our internal control over financial reporting
  our code of conduct and whistleblower 
procedures
  compliance with our obligations under  
the cia
the audit committee is responsible for 
notifying the board of any significant 
concerns of the external auditor or the 
vicepresident ia 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 
and how the audit committee has 
discharged its responsibilities 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 the doj and the uk 
financial reporting council frc pertaining 
to matters within the remit of the audit 
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  
audit committee membership  
and attendance
the members of the audit committee  
are rudy markham chairman of the audit 
committee bruce burlington ann cairns 
jeanphilippe courtois and shriti vadera 
they are all nonexecutive directors the 
board considers each member to be 
independent under the uk corporate 
governance code and under the general 
guidance and specific criteria of the listing 
standards concerning the composition of 
audit committees applicable to nonus 
companies listed on the nyse in april 2014 
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 
code the board remains satisfied that at 
least one member of the audit committee 
has recent and relevant financial experience 
at its meeting in december 2014 the board 
determined that rudy markham and ann 
cairns are audit committee financial 
experts for the purposes of the sarbanes
oxley act for more information regarding 
the experience of the audit committee 
members see the board of directors’ 
biographies on pages 28 and 29 the 
deputy company secretary acts as 
secretary to the audit committee 
meetings of the audit committee are 
routinely attended by the cfo the general 
counsel the chief compliance officer  
the vicepresident ia the vicepresident 
group financial reporting and our external 
auditor the ceo attends on an agenda
driven basis in line with its normal practice 
the audit committee also held a number  
of private meetings without management 
present with the chief compliance officer 
the general counsel the vicepresident  
ia and the company’s external auditor 
these meetings were held between audit 
committee members and those individuals 
separately from the main sessions of the 
audit committee
number of meetings and attendance 
the audit committee held five scheduled 
meetings in 2014 the attendance record  
of the audit committee members is set out 
in the board and board committee meeting 
attendance in 2014 table on page 89 
following each audit committee meeting 
the chairman of the audit committee 
reported to the board on the principal 
matters covered at the meeting and minutes 
of the meetings were circulated to all board 
members in addition the chairman of the 
audit committee held regular scheduled 
subject to the approval of the company’s 
shareholders at a general meeting 
shareholders authorise the directors to  
fix the remuneration of the external auditor 
at a general meeting the audit committee 
reviews and approves the appointment and 
dismissal of the vicepresident ia 
activities of the audit committee  
in 2014
the audit committee has an annual 
calendar of topics developed from its  
terms of reference with standing items 
which it considers in accordance with its 
schedule at each quarterly meeting or 
in some cases annually
during 2014 and in february 2015 the audit 
committee considered and discussed the 
following standing items 
  the key elements of the financial 
statements and the estimates and 
judgements contained in our financial 
disclosures various accounting matters 
were considered these included the 
areas described in the financial review 
under ‘critical accounting policies and 
estimates’ with a focus on accounting 
issues relevant to litigation and taxation 
matters and goodwill impairment from 
page 82 and other matters such as 
noncore items including restructuring 
costs with a particular focus on those 
items that are noncore discussion of 
these matters was supported by papers 
prepared by management and the 
external auditor 
  the reports received from the external 
auditor concerning its audit of the financial 
statements of the group and from 
management ia global compliance and 
the external auditor on the effectiveness  
of our system of internal controls and in 
particular our internal control over financial 
reporting the audit committee also 
reviewed quarterly activity reports of audit 
work carried out by ia and the status of 
followup actions with management as 
well as reports from global compliance
  an update of the group risk appetite 
statement to reflect the revised strategy 
and an annual review and update of  
the astrazeneca risk management 
framework top risks emerging risks 
and group risk taxonomy
  the systems and processes that 
management has developed for risk 
identification classification and mitigation
  compliance with the applicable provisions 
of the sarbanesoxley act in particular 
the status of compliance with the 
97 astrazeneca annual report and form 20f information 2014
corporate governance corporate governance
audit committee report continued
committee’s work and to provide an 
opportunity to discuss specific areas  
of interest these included 
  receiving regular updates from the it team 
in connection with the transformation  
of astrazeneca’s it infrastructure with 
particular attention to cybersecurity
  considering our approach to the 
management of foreign exchange risk  
in emerging markets
  considering the robustness of the process 
by which product forecasts are compiled 
assessed and included in the longterm 
business plan
  considering postinvestment reviews  
of a recent major business development 
transaction a capital expenditure project 
and the integration of the bms diabetes 
business acquired at the start of 2014
in addition to the quarterly reporting 
stipulated by the cia as described above  
a number of other obligations required by 
the cia were discharged by members of  
the board and the audit committee during 
2014 for example all members of the 
board completed the annual ciarequired 
training addressing the code of conduct 
and the elements of the cia and the us 
compliance programme furthermore the 
board adopted a resolution signed by each 
board member in respect of the fourth  
12 month reporting period under the cia  
the resolution summarised the board’s 
oversight of the us compliance programme 
and stated that to the best of the board’s 
knowledge astrazeneca pharmaceuticals 
lp and astrazeneca lp astrazeneca’s 
principal us trading entities have 
implemented an effective us compliance 
programme to meet us federal healthcare 
programme fda and cia requirements 
significant financial reporting issues 
considered by the audit committee 
in 2014
the audit committee determined that the 
significant issues considered during the  
year were
  revenue recognition
  impairment of intangible assets
  litigation and contingent liabilities
  tax accounting
  postretirement benefits
revenue recognition
the us is our largest single market and 
sales accounted for 388 of our revenue  
in 2014 revenue recognition particularly  
in the us is impacted by rebates 
programme of internal controls over 
financial reporting implemented pursuant 
to section 404 of the sarbanesoxley act 
the audit committee remained focused 
on it controls in the context of the 
changes to the group’s it environment 
described below more information about 
this is set out in the sarbanesoxley act 
section 404 section of the financial 
review on page 85 
  data about reports made by employees 
via the azethics helpline online facilities 
and other routes regarding potential 
breaches of the code of conduct 
together with the results of inquiries into 
those matters
  quarterly reports received from the us 
compliance officer responsible for 
monitoring the us business’s compliance 
with the cia for more information about 
the obligations imposed on the board by 
the cia see below
  reports from the group treasury function 
and in particular reports concerning the 
group’s liquidity and cash position and the 
appropriateness of its cash management 
policies in the context of the current 
economic situation
  going concern assessment and adoption 
of the going concern basis in preparing 
this annual report and the financial 
statements
  other reports on a quarterly basis 
concerning ia global compliance and 
finance including the internal audit plan 
and progress and plans of global 
compliance
  quarterly reports from the general 
counsel on the status of certain litigation 
matters and governmental investigations
  the amount of audit and nonaudit fees of 
the external auditor throughout 2014 the 
audit 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 2014 is disclosed in note 29 to the 
financial statements on page 188
  a review and assessment of the audit 
committee’s performance
in addition to its usual business as 
described above during 2014 members  
of the audit committee met individual 
managers or groups of managers on a 
number of occasions to gain a deeper 
insight into areas relevant to the audit 
chargebacks cash discounts and returns 
for more information please see the 
financial review from page 70 the audit 
committee pays particular attention to 
management’s estimates of these items  
its analysis of any unusual movements  
and their impact on revenue recognition 
informed by commentary from the  
external auditor in particular in 2014  
the audit committee considered the  
accounting treatment of the us branded 
pharmaceutical fee following enactment  
of final regulations by the us internal 
revenue service in the third quarter 
and the rebate calculation methodology 
and assumptions used at medimmune
impairment of intangible assets
the group has significant intangible assets 
arising from the acquisition of businesses 
and ip rights to medicines in development 
and on the market in his quarterly report  
to the audit committee the cfo outlines 
the carrying value of the group’s intangible 
assets and in respect of those intangible 
assets that are identified as at risk of 
impairment the difference between the 
carrying value and management’s current 
estimate of discounted future cash flows  
for ‘at risk’ products the headroom 
products will be identified as ‘at risk’ 
because the headroom is limited or 
because for example in the case of a 
medicine in development a significant 
development milestone such as the 
publication of clinical trial results could 
significantly alter management’s forecasts 
for the product 
in 2014 there were no significant 
impairments of intangible assets
litigation and contingent liabilities
litigation particularly that relating to the 
enforcement and defence of ip rights 
protecting medicines is a significant feature 
of the pharmaceutical industry in addition  
to ip litigation the group is involved in a 
number of government investigations and  
is a defendant in certain product liability 
actions the audit committee receives 
regular updates from the general counsel 
and is informed by commentary from the 
external auditor on the status of those 
litigation matters that might result in fines  
or damages against the company to 
assess whether provisions should be taken 
and if so when and in what amounts 
of the matters the audit committee 
considered in 2014 the nexium antitrust 
case and the doj investigation into 
brilinta were among the most significant 
98 astrazeneca annual report and form 20f information 2014 with the transitional guidance issued by the 
frc kpmg was first appointed as sole 
external auditor to astrazeneca in 2001 
following a competitive tender the new eu 
audit reform framework and the competition 
 markets authority’s order do not impact 
the audit committee’s decision to put the 
audit out to tender by 2018
nonaudit services
the audit committee maintains a policy  
the nonaudit services policy 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 audit
related and tax services to be performed  
by the external auditor during the year 
subject to fee limits agreed with the audit 
committee in advance the cfo supported 
by the vicepresident group financial 
reporting 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 audit committee together 
with one other audit committee member in 
the first instance a standing agenda item  
at audit committee meetings covers the 
operation of the preapproval procedures 
and regular reports are provided to the  
full audit committee 
in 2014 nonaudit services provided  
to the company by kpmg included tax 
compliance services and audit services in 
relation to employee benefit funds within 
the scope of the preapproved services set 
out in the nonaudit services policy the 
audit committee supported management’s 
decision to enter into an outsourcing 
arrangement for tax and statutory accounts 
preparation work which following 
implementation in 2014 resulted in such 
work previously undertaken by kpmg 
transitioning to another firm in addition for 
other nonaudit services management has 
determined that the company’s auditors 
astrazeneca successfully defended the 
claims against it in the nexium antitrust 
case and the doj decided to discontinue  
its investigation into the brilinta plato trial
tax accounting
the audit committee considered the 
overall tax affairs of the group in 2014 
noting that the exposure associated with 
significant tax contingencies had reduced 
somewhat but remains significant the 
audit committee considered the key tax 
developments at oecd including proposed 
requirements for tax transparency through 
countrybycountry reporting the audit 
committee concluded that the company 
would be well positioned to meet such 
additional requirements
postretirement benefits
pension accounting continues to be 
a significant area of focus the audit 
committee reviewed solvency ratios for 
all significant pension plans and assessed 
ongoing actions to secure the longterm 
funding of the plans the audit committee 
supported the company’s funding plans
internal controls
at each quarterly meeting the audit 
committee receives a report of the matters 
considered by the disclosure committee 
during the quarter at the february 2015 
meeting the cfo presented to the audit 
committee the conclusions of the ceo  
and the cfo following the evaluation of  
the effectiveness of our disclosure controls 
and procedures required by item 15a of 
form 20f at 31 december 2014 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
appointing the auditor and safeguards 
on nonaudit services
we noted in our 2012 annual report that 
having reviewed the changes to the uk 
corporate governance code with regard  
to putting the external audit contract out  
to tender at least every 10 years and 
cognisant of the fact that the lead audit 
partner at kpmg rotated in 2013 the audit 
committee determined that the audit would 
be put out to tender by 2018 in accordance 
should only be engaged where they are  
the only credible choice of service provider 
for a particular piece of work at its meeting 
in july 2014 the audit committee 
determined that with immediate effect all 
tax services to be performed by the auditor 
should be presented to the audit committee 
for preapproval this decision was in 
response to eu legislation that will restrict 
the nonaudit services that can be provided 
by the external auditor and which is 
expected to be effective from june 2016 
fees paid to the auditor for audit 
auditrelated and other services are 
analysed in note 29 to the financial 
statements on page 188 fees for nonaudit 
services amounted to 34 of the fees paid 
to kpmg for audit auditrelated and other 
services in 2014 
assessing external audit effectiveness
in accordance with its normal practice  
the audit committee considered the 
performance of kpmg it also considered 
kpmg’s compliance with the independence 
criteria under the relevant statutory 
regulatory and ethical standards applicable 
to auditors and assessed its objectivity 
taking into account the level of challenge 
provided around the critical estimates and 
judgements involved in our financial 
reporting and the quality of our internal 
control over financial reporting having 
considered all these factors the audit 
committee recommended to the board  
that a resolution for the reappointment of 
kpmg as the company’s external auditor 
for the year ending 31 december 2015 be 
proposed to shareholders at the agm in 
april 2015 
consistent with current market practice 
kpmg’s services to the company are 
provided pursuant to terms of engagement 
which are reviewed by the audit committee 
neither these terms of engagement nor  
any other agreement include any contractual 
obligations under which the board would be 
prevented from appointing a different audit 
firm were they to consider this to be in the 
best interests of the group the audit 
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 
99 astrazeneca annual report and form 20f information 2014
corporate governance corporate governance
directors’ remuneration report
dear shareholder 
2014 was an eventful year for 
astrazeneca as we continued to deliver 
on our ambitious strategy against the 
backdrop of uncertainty generated by  
a takeover approach in the first half  
of the year
particularly in china where we continue to 
outpace the market brilintabrilique also 
performed well 
our leadership team is similarly focused  
on our achieve scientific leadership  
targets with short and longterm  
measures aligned to these priorities too  
the company delivered exceptional  
pipeline performance in 2014 with many 
opportunities accelerated and progressed 
significantly above expectations through 
innovative rd as well as successful 
strategic collaborations and acquisitions  
to highlight two achievements the year 
opened with the approval of farxiga  
for type 2 diabetes mellitus in the us  
and closed with the us and european 
approval of lynparza for the treatment  
of ovarian cancer
our overall financial performance for the 
year reflects both where our market 
products are in their lifecycle and the 
progress made in our pipeline we have 
invested heavily in our growth platforms  
and pipeline patent expiries have as 
expected led to a fall in core operating 
profit and as a consequence core eps 
has also declined our shortterm total 
shareholder return tsr performance 
however continues to improve and from  
the start of 2014 to year end astrazeneca’s 
tsr was ranked first among its global 
pharmaceutical peers the board believes 
that the current leadership team is having  
a profound and positive impact on the 
performance of the company this has 
influenced the remuneration committee’s 
judgements about pay in 2014 and 2015 
the company has been reinvigorated by 
as the remuneration committee  
our approach to pay is clear – we aim  
to use it to facilitate the implementation  
of astrazeneca’s strategy and to promote 
the longterm success of the company  
with performancerelated elements that  
are intended to be stretching and rigorously 
applied during the course of 2014 the 
remuneration committee’s discussions  
and judgements reflected these core 
principles and also took into account 
astrazeneca’s overall performance the 
personal contribution of the executive 
directors and the experience of our 
shareholders and their feedback
2014 performance and outcomes
when pascal soriot joined astrazeneca as 
ceo in october 2012 he articulated a clear 
and bold strategy based on three strategic 
pillars return to growth achieve scientific 
leadership and achieve group financial 
targets since that time all aspects of 
performancerelated pay have been directly 
aligned to the business plan based on these 
pillars and developed to deliver the strategy
our return to growth strategy is focused  
on revenue generation through the growth 
platforms of brilintabrilique the diabetes 
and respiratory franchises emerging 
markets and japan our pay framework 
supports these aims with specific revenue 
targets for each area being included in both 
the short term incentive and long term 
incentive lti plan performance measures 
this year saw strong commercial 
performance in diabetes following our 
acquisition of bms’s interest in the diabetes 
alliance respiratory driven by symbicort  
and strong sales in emerging markets 
both the strategy which mr soriot has  
put in place since appointment and the 
determination he has shown in driving  
this forward during 2013 and 2014 the 
remuneration committee also considered 
this performance within the context  
of the uncertainty created by the pfizer 
approaches with destabilising speculation 
persisting through most of the year the 
board believes that mr soriot has developed 
a truly innovative culture within astrazeneca 
which places science and patients  
at its heart and this culture has been 
fundamental to the delivery of the strong 
scientific and commercial results this year 
taking all of this into account the 
remuneration committee awarded pascal 
soriot an annual bonus for 2014 of 170  
of base salary we have awarded marc 
dunoyer an annual bonus for 2014 of 
1494 of base salary
the bonus award outcomes determined  
by the remuneration committee for  
mr soriot and mr dunoyer reflect strong 
corporate performance across all our  
global scorecard measures but particularly 
those relating to achieve scientific 
leadership and group financial targets 
these outcomes reflect the acceleration  
in our pipeline across all of our main therapy  
areas most notably in oncology and  
the strengthening of our growth platforms 
through targeted investments such  
as the acquisition of bms’s interest  
in the diabetes alliance in 2014 the 
company achieved a record six ndabla 
product approvals and delivered four 
quarters of revenue growth with the return 
to growth platforms now contributing over 
half of the group’s revenues 
100 astrazeneca annual report and form 20f information 2014 we see remuneration  
as your resource  
and we attempt to 
spend it wisely to 
increase the value  
of your shareholdings  
in astrazeneca”
of these longer term goals predated the 
pfizer approaches and our confidence in  
the achievement of them was an important 
part of the board’s judgement to reject 
pfizer as a result the remuneration 
committee believes that the existing 
performance measures already focus 
participants on the longterm targets that  
we articulated during the pfizer approaches 
and that ultimately the realisation of the 
annuai bonus and lti awards will be 
intimately influenced by the delivery of  
the independent strategy
the performance share plan psp 
performance measures were amended  
to reflect the new strategy with effect from 
the beginning of 2013 during the year the 
remuneration committee reviewed the 
astrazeneca investment plan azip under 
which awards have an eight year time 
horizon we concluded that the existing 
dividend yield and dividend cover metrics 
underpinning the azip and the original intent 
of the plan which was to align executives’ 
pay directly to the experience of the 
shareholder remain valid as such no 
changes to the structure of lti plans are 
currently proposed the remuneration 
committee will continue to keep the overall 
levels of awards and structure of the 
remuneration framework under review as 
the business grows and the strategic plan  
is delivered
responding to shareholder feedback 
the remuneration committee took careful 
note of the response from shareholders to 
the 2013 annual report on remuneration 
the implementation report the vote in 
favour of the remuneration policy was 
8500 but the vote in favour of the 
implementation report was 6146 as  
part of my consultation with shareholders  
in the summer i sought to understand the 
concerns that led to the lower than usual 
support for our implementation report  
and how we might address these matters  
in the future 
one concern raised was whether the 
remuneration committee has the ability  
to go outside the remuneration policy for 
new joiners – which was not and is not  
our intention as a result you will see in the 
introduction to our remuneration policy 
report this year that we have included  
a statement to clarify that it is not the 
remuneration committee’s intention to go 
outside the policy in respect of new recruits 
and the remuneration committee maintains 
key matters considered in 2014
the pfizer approaches
in the course of the last year approaches 
from pfizer in january and again in may 
resulted in the remuneration committee 
meeting on a number of occasions to 
consider the key remuneration matters 
associated with a potential takeover in the 
summer i spoke with a number of major 
shareholders to seek their views on the 
company’s approach to pay this year  
i particularly sought input on whether the 
rejection of the pfizer approach impacted 
our shareholders’ opinions on how we 
should reward the executive directors
the clear message we received was that 
our executive pay arrangements must be 
directly linked to the strategy and its delivery 
there were some suggestions that we 
should include some of the 2023 metrics 
cited in response to pfizer’s approaches 
however there was no consensus view as 
to how this should be structured and there 
was variation in shareholders’ individual 
preferences as to how the remuneration 
committee might respond
the remuneration committee carefully 
considered this feedback whilst being 
mindful that the existing annual bonus  
and lti measures were recently revised in 
2013 to bring them into line with our new 
strategy and already include a number of 
important sciencebased and commercial 
performance metrics these measures are 
directly aligned to each stage of the pipeline 
and the commercial business plan which 
are projected to deliver the company’s 
longer term goals including the 2023 
45 billion revenue target the existence  
its policy not to pay ‘golden hellos’ to 
executives upon joining astrazeneca 
in the implementation report we have 
enhanced the disclosure of our retrospective 
annual bonus and lti targets and outcomes 
as you will know from what i wrote in this 
letter a year ago the board believes that  
the disclosure of certain targets in advance 
would create commercial risk however for 
each outstanding award under the psp  we 
have disclosed the threeyear cash flow and 
relative tsr targets in advance we similarly 
disclose the azip targets in advance in 
relation to the financial goal metrics for the 
annual bonus we will habitually disclose 
these in the directors’ remuneration report 
of the year for which the targets were set 
thus the 2014 financial targets can be found 
on page 106 in the implementation report 
our intention is that the achieve scientific 
leadership and return to growth targets 
supporting the annual bonus opportunity 
will be disclosed two years after the end of 
the performance year to which the targets 
relate in respect of the psp  the achieve 
scientific leadership and return to growth 
targets will be disclosed in the directors’ 
remuneration report which coincides  
with the vesting date of the relevant awards 
so for example the achieve scientific 
leadership and return to growth targets 
underlying the psp awards made in march 
2015 will be disclosed in the 2017 directors’ 
remuneration report i hope that these 
improvements along with the insights  
we have shared with regard to specific 
decisions relating to the ceo and cfo’s 
pay will reassure shareholders that we  
are committed to providing readers with 
disclosure that is clear transparent and 
appropriately timely 
uk corporate governance code
a revised uk corporate governance  
code was published towards the end of the 
year we aim to observe uk best practice 
we note that last year’s introduction of an 
additional twoyear holding period for 
executive director psp awards as well  
as the clawback and malus provisions 
included in all our executive lti plans 
means that the company’s existing reward 
arrangements already comply with the 
relevant new elements of the code 
chairman’s pay
the chairman’s fee has not been changed 
since mr johansson took up the role in 
2012 during 2014 the remuneration 
committee reviewed the fee and in 
101 astrazeneca annual report and form 20f information 2014
corporate governance corporate governance
directors’ remuneration report continued
recognition of mr johansson’s excellent 
leadership of the board and the amount of 
time he dedicates to astrazeneca which 
exceeds what the board anticipated at the 
time of his appointment the remuneration 
committee felt that it was appropriate to 
increase his fee from £500000 to £575000 
with effect from 1 july 2014 
nonexecutive director pay
fees for the nonexecutive directors  
have not been reviewed since 2010 in 
recognition of the increased demands  
of chairing board committees generally  
and the increasing business development 
activity which is reviewed by the science 
committee the chairman and the executive 
directors determined that the fees for 
chairing a committee and for membership 
of the science committee should increase 
with effect from 1 january 2015 details are 
set out on page 1 14 other fees remain 
unchanged
approach to remuneration in 2015 
in 2015 the remuneration committee will 
continue to ensure that the company’s 
approach to pay incentivises and rewards 
longterm performance helping to deliver 
sustainable shareholder value the setting of 
our global scorecard and lti performance 
measures will continue to link directly to  
the longterm business plan including the  
2023 45 billion revenue target which we 
announced in may 2014 with measures 
aligned to each key stage of the pipeline  
and the core commercial growth platforms 
in 2015 we will include an oncology sales 
target representing its future strategic 
importance to the business within the 
cohort of commercial targets in the return 
to growth group of measures as we 
continue to ensure pay is aligned to the  
core aspects of the strategy we believe  
this therapy area will play a key role in 
delivering the company’s longterm 
strategy it is important that the pay of our 
senior executives is tied to the successful 
delivery of these milestones 
i will describe the other elements of  
mr soriot’s compensation he received a 
salary increase of 3 effective 1 january 
2015 this increase is in line with the wider 
employee population the remuneration 
committee intends to award a withinpolicy 
but above target lti grant for 2015 of 285 
of base salary target remaining 250 
during the year the remuneration 
committee reviewed the ceo’s pay against 
both the ftse30 market and the us 
pharmaceutical peer group this award 
reflects the remuneration committee’s 
desire to reward and incentivise sustained 
valuecreating performance when evaluated 
against his direct peer group while also 
recognising and being sensitive to our 
shareholders’ expectations we believe that 
it is strongly in the interests of shareholders 
that mr soriot’s compensation opportunity 
is both competitive and motivational
marc dunoyer received a salary increase  
of 2 for 2015 broadly in line with the wider 
employee population and the remuneration 
committee proposes a withinpolicy but 
above target lti award of 210 of base 
salary target remaining 200 2014 was 
marc’s first full year as cfo of astrazeneca 
with pascal soriot he delivered a strong 
financial performance while also remaining 
a key leader in business development 
activity including leading the project to 
acquire almirall’s respiratory franchise 
we see remuneration as your resource  
and we attempt to spend it wisely to 
increase the value of your shareholdings in 
astrazeneca we hope you feel that we are 
striking the right balance between protecting 
your interests by not overspending on the 
one hand and on the other rewarding our  
senior executives fairly and subject to the 
policy approved by our shareholders at  
the 2014 agm
we greatly value our ongoing dialogue  
with our shareholders and as always we 
welcome your feedback on this directors’ 
remuneration report 
yours sincerely
yours sincerely
john varley 
chairman of the remuneration committee
 
102 astrazeneca annual report and form 20f information 2014 corporate governance  directors’ remuneration report
annual report on remuneration  
the implementation report 
governance
remuneration committee membership
the remuneration committee members  
are john varley chairman of the 
remuneration committee graham 
chipchase leif johansson rudy markham 
and nancy rothwell mr johansson was 
considered by the board to be independent 
upon his appointment as chairman of  
the board in accordance with the uk 
corporate governance code the test of 
independence is not appropriate in relation 
to the chairman after his appointment  
all other members of the remuneration 
committee are independent nonexecutive 
directors the deputy company  
secretary acts as the secretary to the 
remuneration committee
how did the remuneration committee 
spend its time during 2014
the remuneration committee met 14 times 
in 2014 the individual attendance record  
of remuneration committee members  
is set out on page 89 at the invitation of  
the remuneration committee except  
where their own remuneration was being 
discussed the ceo the evp  human 
resources the interim evp  human 
resources  corporate affairs the 
vicepresident people practices and 
services the executive compensation 
director and the company secretary 
attended one or more remuneration 
committee meetings in 2014 and provided 
services that materially assisted the 
remuneration committee in addition all 
meetings of the remuneration committee 
were attended by nicki demby representing 
deloitte llp deloitte the remuneration 
committee’s independent adviser 
the work of the remuneration committee 
focused on the following principal matters  
in 2014 and february 2015
  the terms of senior executives’ 
remuneration packages on appointment 
promotion or termination
  the assessment of group and individual 
performance against performance targets 
to determine the level of annual bonuses 
for performance during 2013 and to set 
executive bonus targets during 2014 and 
lti awards to be granted during 2014
  the approval of the rules of the new 
astrazeneca psp prior to the psp being 
proposed to shareholders for approval  
at the 2014 agm including the addition  
of a twoyear holding period
  the assessment of performance against 
targets to determine the level of vesting  
in 2014 under the psp and azip  and the 
setting of psp and azip performance 
thresholds for awards made in 2014
  the determination of individual awards 
made to set members and other 
participants under the group’s main  
lti plans the psp the azip and the 
astrazeneca global restricted  
stock plan
  the determination of restricted share 
awards to a number of senior executives 
under the astrazeneca restricted  
share plan
  consideration of the implications of a 
change of control should the approaches 
from pfizer have been successful on the 
remuneration of executive directors and 
employees throughout the group
  in the context of pfizer’s approaches  
a review of the company’s lti plans  
and their link to the company’s strategy 
including engagement by the chairman  
of the remuneration committee with  
a number of our major shareholders  
to understand their views
  a review of shareholder voting in respect 
of the directors’ remuneration report 
2013 including dialogue with major 
shareholders with a view to 
understanding the reasons for the  
low shareholder vote for the 
implementation report
  a review of the changes to the uk 
corporate governance code and their 
implications for the company’s approach 
to remuneration
  a review of a report providing an analysis 
of key aspects of reward across the  
wider group
  a review of the pension entitlements  
of executive directors and other  
set members
  the determination of the executive 
directors’ and other set members’ 
remuneration for 2015
  a review of the chairman’s board fee  
and office costs
  the assessment of group and individual 
performance against performance targets 
to determine the level of annual bonuses 
for performance during 2014 and to set 
annual bonus targets for 2015 and lti 
awards to be granted during 2015
  the annual review of the performance  
of the remuneration committee
  the review of the terms of reference  
of the remuneration committee
  the preparation review and approval  
of this directors’ remuneration report
independent adviser  
to the remuneration committee
the remuneration committee reappointed 
deloitte as its independent adviser following 
a tender process undertaken in 2013 which 
involved interviews with both the company’s 
management and the chairman of the 
remuneration committee deloitte’s service 
to the remuneration committee was 
provided on a timespent basis at a cost  
to the company of £71300 excluding vat 
during the year deloitte also provided 
taxation advice and other specific nonaudit 
advisory services to the group the 
remuneration committee reviewed the 
potential for conflicts of interest and judged 
that there were no conflicts deloitte is a 
member of the remuneration consultants’ 
group which is responsible for the 
stewardship and development of the 
voluntary code of conduct in relation to 
executive remuneration consulting in the 
uk the principles on which the code is 
based are transparency integrity objectivity 
competence due care and confidentiality 
deloitte adheres to the code
103 astrazeneca annual report and form 20f information 2014
corporate governance corporate governance  directors’ remuneration report
shareholder context
at the company’s agm held in april 2014 the resolutions to approve the annual report on remuneration for the year ended 31 december 
2013 the 2013 implementation report and the directors’ remuneration policy the policy report were passed
resolution text votes for  for votes against  against total votes cast
 of issued share
capital voted votes withheld
ordinary resolution to approve the annual 
report on remuneration for the year ended  
31 december 2013 546233371 6146 342504005 3854 888737376 7045 11214670 
ordinary resolution to approve the directors’ 
remuneration policy 623298717 8500 110030311 1500 733329028 5813 166623018
key areas of shareholder concern with our 2013 directors’ remuneration report
the remuneration committee has carefully considered shareholders’ comments about the 2013 directors’ remuneration report 
following the agm the remuneration committee chairman met andor spoke with the company’s major shareholders to understand  
their views
the table below describes what the remuneration committee understands to have been the key areas of shareholder concern and how it 
has sought to address those concerns in this year’s directors’ remuneration report
policy report
focus of shareholder commentary the remuneration committee’s response
a perception that the remuneration committee has 
the ability to go outside the remuneration policy the 
policy for new joiners
the remuneration committee has sought to clarify its treatment of remuneration for new joiners under the policy 
see paragraphs headed ‘operating guidelines’ on page 124
 the policy becoming effective from 1 january 2015 
instead of from the date of the company’s agm
as the remuneration committee indicated in the 2013 annual report it intended to and in fact did apply the policy 
in determination of its remuneration decisions during 2014 
2013 implementation report 
focus of shareholder commentary the remuneration committee’s response
a wish for greater disclosure of
    annual bonus performance targets  
and outcomes 
    psp performance targets
annual bonus the remuneration committee has enhanced the disclosure of performance outcomes and has 
included the 2013 and 2014 targets for the achieve group financial targets performance measures as set out in 
the annual bonus section on pages 106 and 107 the remuneration committee has also provided performance 
outcomes under the achieve scientific leadership and return to growth areas it considers that the targets 
themselves remain commercially sensitive we commit to providing full disclosure of these targets when they are 
deemed to be no longer commercially sensitive which we currently anticipate to be two years after the end of the 
performance period
psp the remuneration committee has disclosed the cumulative cash flow and tsr targets for existing  
awards see the performance share plan section on page 108 and will include these targets in the disclosure  
of future awards
the remuneration committee continues to consider the performance targets relating to the achieve scientific 
leadership and return to growth measures as commercially sensitive we commit to providing full disclosure  
of these targets when they are deemed to be no longer commercially sensitive which we currently anticipate  
to be immediately following the end of the performance period
the remuneration committee intends to maintain this level of disclosure in future implementation reports
a wish for greater disclosure of the rationale  
for the exercise of the remuneration committee’s 
discretion in respect of the ceo’s 2013 bonus  
award and 2014 lti award
the remuneration committee acknowledges the wish of shareholders to understand better the rationale for 
annual bonus and lti awards especially if these are above target and has sought to address this for 2015  
through the disclosures in the chairman of the remuneration committee’s statement from page 100 and in the 
annual bonus section from page 105 
the increase in the ceo’s pension allowance the remuneration committee has noted the concerns of shareholders and will be mindful of this when considering 
the ceo’s pension allowance in the future however the remuneration committee is also cognisant of the need  
to ensure that the overall remuneration arrangements of the executive directors are competitive
there has not been any increase in the ceo’s pension allowance for 2015 
basis of preparation of this directors’ remuneration report
this directors’ remuneration report has been prepared in accordance with the large and mediumsized companies and groups 
accounts and reports amendment regulations 2013 the regulations and meets the relevant requirements of the financial conduct 
authority’s listing rules as required by the regulations a resolution to approve the implementation report of this directors’ remuneration 
report will be proposed at the agm on 24 april 2015
terms of reference
a copy of the remuneration committee’s terms of reference is available on our website wwwastrazenecacom the remuneration 
committee conducted a review of its terms of reference during 2014 a number of changes were recommended to the board principally  
to reflect the changes to the uk corporate governance code during the year the changes were approved by the board in february 2015
annual report on remuneration  
the implementation report continued
104 astrazeneca annual report and form 20f information 2014 what did we pay our directors
directors’ single total figure remuneration audited 
2014 
base 
salary 
and fees
£’000
2013 
base 
salary 
and fees
£’000
2014
taxable
benefits
1
£’000
2013 
taxable 
benefits
1
£’000
2014 
annual 
bonus
2
£’000
2013 
annual 
bonus
2
£’000
2014
longterm 
incentives 
vesting
£’000
2013 
longterm 
incentives 
vesting
£’000
2014 
pension 
allowance
3
£’000
2013 
pension 
allowance
3
£’000
2014 
total
£’000
2013 
total
£’000
executive directors
pascal soriot 1133 1100 108 110 1926 1870 – – 340 264 3507 3344
marc dunoyer 680 113
4
62 10 1016 146 – – 163 27 1921 296
former executive director
simon lowth
5
– 579 – 48 – – – – – 139 – 766
total 1813 1792 170 168 2942 2016 – – 503 430 5428 4406
nonexecutive directors
leif johansson 572
67
540
7
– – – – – – – – 572 540
geneviève berger 85 85 – – – – – – – – 85 85
bruce burlington 105 105 – – – – – – – – 105 105
ann cairns 65 – – – – – – – – – 65 –
graham chipchase 92 95 – – – – – – – – 92 95
jeanphilippe courtois 95 95 – – – – – – – – 95 95
rudy markham 130 130 – – – – – – – – 130 130
nancy rothwell 107 107 – – – – – – – – 107 107
shriti vadera 95 95 – – – – – – – – 95 95
john varley 140 140 – – – – – – – – 140 140
marcus wallenberg 85 85 – – – – – – – – 85 85
total 1571 1477 – – – – – – – – 1571 1477
1
  executive directors may select benefits within the company’s uk flexible benefits programme or can select to take all or any remaining allowance after the selection of benefits in cash in 2014  
the executive directors principally took the allowance in cash £102000 in respect of mr soriot and £56000 in respect of mr dunoyer and selected other benefits including healthcare insurance 
deathinservice provision and advice in relation to tax
2
 onethird of the pretax bonus is deferred into ordinary shares these will be held for three years before being released subject to continued employment the bonus is not pensionable
3
  for mr soriot for 2014 this sum is equivalent to 30 of base salary for mr soriot for 2013 and mr dunoyer for both 2013 and 2014 this sum is equivalent to 24 of base salary in all instances  
the sums were taken as a cash alternative to participation in a defined contribution pension scheme
4
 mr dunoyer was appointed as cfo with effect from 1 november 2013 with an annualised base salary of £680000
5
 mr lowth ceased to be a director of the company on 31 october 2013
6
 the chairman’s board fee was increased with effect from 1 july 2014 from £500000 to £575000 per annum
7
  includes office costs invoiced in swedish krona of £34500 for 2014 and £40000 for 2013 the remuneration committee approved an inflationrelated increase in office costs with effect  
from 1 august 2014
additional notes to the directors’ single total figure remuneration table
annual bonus
for 2014 the principal drivers of annual bonus opportunity were measures for achieve group financial targets 40 achieve scientific 
leadership 30 and return to growth 30 together with individual performance details of which are set out below the ceo had a 
target annual bonus of 100 of base salary range 0180 and the cfo had a target annual bonus of 90 of base salary range 0150
onethird of the pretax bonuses earned for the year will be deferred into ordinary shares which will vest three years from the date  
of deferral subject to continued employment
the precise targets or target ranges set at the beginning of the performance period are closely aligned to the company’s strategic  
priorities set out in the global scorecard following feedback from shareholders that they would like to see greater disclosure of the link 
between performance and pay outcomes we have sought to increase our disclosure levels around the annual bonus while being mindful 
of commercial sensitivity in some areas as such under the achieve group financial targets element of the bonus we have set out overleaf 
the targets for 2014 and company performance against those targets in addition we have provided the outcomes under each of the 
achieve scientific leadership and return to growth measures while in the judgement of the board the targets themselves under these 
areas remain commercially sensitive we will make retrospective disclosure of these when we no longer consider the targets to be 
commercially sensitive which we currently anticipate to be two years after the end of the performance period
furthermore we have sought to provide shareholders with more context around our performance in 2013 and as such have provided 
2013 targets for the achieve group financial targets measure at the bottom of this section
although the performance targets in the global scorecard drive prima facie bonus outcomes the remuneration committee also applies 
judgement to assess the executive director’s individual performance in 2014 the remuneration committee determined that mr soriot’s 
annual bonus should amount to 170 of base salary representing 944 of the potential maximum the remuneration committee 
determined that mr dunoyer’s bonus should amount to 1494 of base salary representing 996 of the potential maximum 
105 astrazeneca annual report and form 20f information 2014
corporate governance corporate governance  directors’ remuneration report
the bonus award outcomes determined by the remuneration committee for both mr soriot and mr dunoyer reflect strong corporate 
performance across all our global scorecard measures but particularly those relating to achieve scientific leadership and achieve group 
financial targets these outcomes reflect the acceleration in our pipeline across all main therapy areas most notably in oncology and  
the strengthening of our growth platforms through targeted investments such as the acquisition of bms’s interest in the diabetes alliance  
in 2014 the company achieved a record six ndabla product approvals and delivered four quarters of revenue growth with the return  
to growth platforms now contributing over half of the group’s revenues 
1 achieve group financial targets
these targets are based on the company’s key financial measures the annual bonus outcomes reflect the strong revenue and cash flow 
performance delivered in 2014 exceeding the targets set at the beginning of the year core eps performance was also above target
performance measures for 2014 weighting target outcome performance
pascal 
soriot 
level of 
award
marc 
dunoyer 
level of 
award
achieve cash flow from operating activities target 10 of target bonus 38bn
1
 59bn
1
 exceeded target 22 20
achieve core eps target 20 of target bonus 425
2
 435
2
 met target 28 24
achieve overall revenue target 10 of target bonus 246bn
2
 262bn
2
exceeded target 22 20
pascal soriot level of award £817000 representing 43 of total annual bonus outcome
marc dunoyer level of award £431000 representing 43 of total annual bonus outcome
1
  the cash flow target and the performance against that target is evaluated by reference to net cash flow before distributions and other adjustments required by the performance conditions
2
  the core eps and revenue targets and the performance against those targets are evaluated by reference to budget exchange rates such that beneficial or adverse movements in currency  
which are outside the company’s control do not impact reward outcomes
2 achieve scientific leadership
these measures reflect the company’s ability to deliver innovation to the market in 2014 we continued to make significant progress 
towards achieving scientific leadership and exceeded three out of five of our pipeline targets the astrazeneca pipeline now includes  
133 projects of which 1 18 are in the clinical phase of development there are 13 nme projects currently in latestage development either  
in phase iiipivotal phase ii studies or under regulatory review during 2014 across the portfolio 50 projects successfully progressed to their 
next phase this includes two first launches and four first approvals in a major market and 14 nme progressions in addition 21 projects 
have entered phase i and nine projects have been discontinued
performance measures for 2014 weighting target outcome performance
pascal 
soriot
aggregate
level of
award
marc
dunoyer
aggregate
level of
award
phase ii startsprogressions
6 of target 
bonus per 
measure 
commercially 
sensitive 
until march 
2017
13 exceeded target
60 53
positive phase iii investment decisions 9 exceeded target
nme and major lifecycle management 
submissions 6 met target
nme and major lifecycle management 
approvals 12 exceeded target
clinicalstage external licensing and partnering 
opportunities 3 met target
pascal soriot level of award £681000 representing 35 of total annual bonus outcome
marc dunoyer level of award £359000 representing 35 of total annual bonus outcome
3 return to growth
these measures are based on quantitative sales targets for 2014 relating to the company’s growth platforms brilintabrilique diabetes 
respiratory emerging markets and japan in 2014 we did in aggregate meet our return to growth targets our growth platforms 
contributed 53 of total revenue an increase of 15 from 2013
performance measures for 2014 weighting target outcome performance
pascal
soriot
aggregate
level of
award
marc
dunoyer
aggregate
level of
award
deliver brilintabrilique target
6 of target 
bonus per 
measure 
commercially 
sensitive
until march 
2017
 476m below target
38 33
build diabetes franchise 1870m met target
deliver respiratory goals 4747m exceeded target
deliver sales growth in emerging markets 5827m met target
deliver japan target 2227m below target
pascal soriot level of award £428000 representing 22 of total annual bonus outcome
marc dunoyer level of award £226000 representing 22 of total annual bonus outcome
annual report on remuneration  
the implementation report continued
106 astrazeneca annual report and form 20f information 2014 4 individual performance
the remuneration committee’s decisions recognise the profound and positive impact that the ceo and the cfo are having on the 
performance of the company mr soriot’s focus on delivering the strategy and the leadership he displayed during the pfizer approaches 
have enabled the organisation to deliver strong scientific financial and commercial results in 2014 this performance has been delivered 
while implementing a significant programme of change in the organisation
2014 was mr dunoyer’s first full year as cfo of astrazeneca with mr soriot he delivered a strong financial performance while also 
remaining a key leader in business development activity including leading the project to acquire almirall’s respiratory franchise 
disclosure of achieve group financial targets information for 2013
the remuneration committee has determined that the 2013 targets relating to the achieve group financial targets element of the annual 
bonus are no longer commercially sensitive and can therefore be disclosed
performance measures for 2013 target outcome performance
achieve cash flow from operating activities target 23bn
1
 58bn
1
exceeded target
achieve core eps target 521
2
529
2
met target
achieve overall revenue target 263bn
2
263bn
2
met target
1
 the cash flow target and the performance against that target is evaluated by reference to net cash flow before distributions and other adjustments required by the performance conditions
2
  the core eps and revenue targets and the performance against those targets are evaluated by reference to budget exchange rates such that beneficial or adverse movements in currency  
which are outside the company’s control do not impact reward outcomes
share interests awarded during the year under the deferred bonus plan psp and azip audited
deferred bonus plan
pascal soriot marc dunoyer
interest awarded 15966 ordinary shares awarded on 28 march 2014  
at a grant price of 3904 pence per share
2679 ordinary shares awarded on 28 march 2014  
at a grant price of 3904 pence per share
description of interest onethird of the pretax annual bonus for executive directors is deferred into ordinary shares or adss typically the shares 
are acquired on the open market at the prevailing market price at the date of the vesting the number of shares acquired 
reflects the number of shares which would have been acquired at the prevailing market price on the award date
basis of award automatic deferral of onethird of annual bonus into ordinary shares or adss
face value of award £623000 £105000
vesting level at threshold performance
1
100
end of performance period
2
28 march 2017
summary of performance measures  
and targets
no performance conditions apply but vesting is ordinarily subject to continued employment
1
 no performance conditions apply under the deferred bonus plan other than continued employment
2
 as no performance conditions apply this date represents the end of the holding period
107 astrazeneca annual report and form 20f information 2014
corporate governance corporate governance  directors’ remuneration report
share interests awarded during the year under the deferred bonus plan psp and azip audited continued
performance share plan psp
pascal soriot marc dunoyer
interest awarded 124066 ordinary shares awarded on 28 march 2014  
at a grant price of 3904 pence per share
52254 ordinary shares awarded on 28 march 2014  
at a grant price of 3904 pence per share
description of interest the psp provides for the grant of awards over ordinary shares or adss the vesting date is the third anniversary of the date  
of the award subject to performance and continued employment
the annual target award is expressed as a percentage of base salary awards are weighted 75 in favour of the psp and 25  
in favour of the azip
basis of award mr soriot’s lti award psp and azip
285 of base salary expected value
mr dunoyer’s lti award psp and azip
200 of base salary expected value
for the psp we assume an expected value on vesting of 50 of the value of the award at grant
for mr soriot this equated to a psp award at face value  
of 4275 of base salary
for mr dunoyer this equated to a psp award at face value  
of 300 of base salary
face value of award £4844000 £2040000
vesting level at threshold performance 25
end of performance period 31 december 2016
summary of performance measures 
and targets
a combination of measures focused on our scientific commercial and financial performance assessed over the relevant threeyear 
performance period
twentyfive percent of the award is based on the relative tsr performance of the company against a predetermined peer group  
of global pharmaceutical companies the rank which the company’s tsr achieves over the performance period will determine how 
many shares will vest under the part of the award subject to the tsr performance measure payouts against performance  
in relation to tsr for psp awards are expressed as a percentage of the maximum award currently payable shown within a range of 
0 to 100 as shown in the table below
tsr ranking of the company –  
psp awards made in 2013 and 2014  of award under tsr performance measure that vests
below median 0
median 25
between median and upper quartile pro rata
upper quartile 75
above upper quartile 75 to 100 at the remuneration committee’s discretion
more information about the tsr performance of the company including the company’s peer group is set out in the total 
shareholder return section on page 111
twentyfive percent of the award is based on the achievement of a cumulative free cash flow target the measure for the cash  
flow target for the psp awards made in 2013 and 2014 is net cash flow before distributions and other adjustments required by the 
performance conditions subject to any further adjustments the remuneration committee chooses to make using its judgement 
and thus referred to as ‘adjusted cumulative cash flow’ over the same threeyear performance period as the tsr performance 
measure and the level of vesting for the part of the award subject to the cash flow performance measure is based on a sliding scale 
between a threshold cash flow target and an upper target vesting levels in relation to the threshold target and the upper target are 
shown in the table below
adjusted cumulative cash flow –  
psp awards made in 2013 and 2014  of award under cash flow performance measure that vests
less than 9 billion 0
9 billion 25
between 9 billion and 11 billion pro rata
11 billion 75
between 11 billion and 13 billion pro rata
13 billion and above 100
twentyfive percent of the award is based on achieve scientific leadership measures covering five areas an nme target which 
reflects the company’s ability to deliver innovation to the market major lifecycle management approvals which represent a good 
proxy for neartomid term growth the volume of nmes in phase iii and their registration a target for peakyear sales to track the 
value of pipeline output and delivery from our research and early development organisation assessed by phase ii starts
twentyfive percent of the award is based on return to growth measures based on quantitative sales targets relating to the 
company’s five growth platforms brilintabrilique diabetes respiratory emerging markets and japan 
as the psp performance measures related to achieve scientific leadership and return to growth are an indicator of the company’s 
longerterm strategic priorities we believe that the targetstarget ranges associated with them are commercially sensitive we will 
make retrospective disclosure when the targets are deemed to be no longer commercially sensitive which we currently anticipate to 
be immediately following the end of the performance period
more information about the psp’s performance measures is set out on page 120 of the remuneration policy report
annual report on remuneration  
the implementation report continued
108 astrazeneca annual report and form 20f information 2014 astrazeneca investment plan azip
pascal soriot marc dunoyer
interest awarded 20677 ordinary shares awarded on 28 march 2014  
at a grant price of 3904 pence per share
8709 ordinary shares awarded on 28 march 2014  
at a grant price of 3904 pence per share
description of interest the azip provides for the grant of awards over ordinary shares or adss the vesting date is the eighth anniversary of the start  
of the performance period being 1 january in any given year subject to performance and continued employment
the annual target award is expressed as a percentage of base salary awards are weighted 75 in favour of the psp and 25  
in favour of the azip
basis of award mr soriot’s lti award psp and azip
285 of base salary expected value
mr dunoyer’s lti award psp and azip
200 of base salary expected value
for the azip we assume an expected value on vesting of 100 of the value of the award at grant
for mr soriot this equated to an azip award at face value  
of 7125 of base salary
for mr dunoyer this equated to an azip award at face value  
of 50 of base salary
face value of award £807000 £340000
vesting level at threshold performance 100
end of performance period 31 december 2017
end of holding period 31 december 2021
summary of performance measures 
and targets
dividend and dividend cover hurdles assessed over the relevant fouryear performance period
  dividend per share of 280 maintained or increased over the performance period
  dividend cover of 15 maintained over the performance period calculated on the basis of core eps
both performance hurdles must be achieved in each year of the performance period for the award to vest
more information about the azip’s performance hurdles is set out on page 121 of the remuneration policy report
variable pay timeline
2014 performancerelated pay
performance period  annual bonus  performance share plan  astrazeneca incentive plan
vestingholding period  annual bonus deferred share element  performance share plan  astrazeneca incentive plan
grant date  
vesting date  
mar 2015 mar 2014 mar 2017 mar 2018
1 jan 2014 31 dec 2014 31 dec 2015 31 dec 2016 31 dec 2017 1 jan 2022
payments to former directors audited
no payments were made during 2014 to former directors
payments for loss of office audited
other than the vesting of one of the deferred bonus plan awards disclosed in the 2013 implementation report in respect of mr lowth  
who ceased to be a director of the company on 31 october 2013 no payments were made for loss of office during 2014 
109 astrazeneca annual report and form 20f information 2014
corporate governance corporate governance  directors’ remuneration report
service contracts
the notice periods and unexpired terms of executive directors’ service contracts at 31 december 2014 are shown in the table below 
astrazeneca or the executive director may terminate the service contract on 12 months’ notice 
executive director date of service contract unexpired term at 31 december 2014 notice period
pascal soriot 27 august 2012 12 months 12 months
marc dunoyer 15 march 2013 12 months 12 months
remuneration context and our past performance
statement of change in remuneration of ceo compared to other employees
percentage change of ceo against 2013 average percentage change for employees against 2013
salary 3 53
taxable benefits 0 56
annual bonus 3 279
the employee comparator group comprises employees in the uk us and sweden we consider this to be an appropriate comparator 
group because it is representative of the group’s major science business and enabling units and the employee populations are well 
balanced in terms of seniority and demographics to provide a meaningful comparison of salary increases a consistent employee 
comparator group is used by which the same individuals appear in the 2013 and 2014 group 
ceo total remuneration table 
year ceo
ceo single total figure 
remuneration 
£’000
annual bonus
£’000
annual bonus payout
against maximum
opportunity 

value of ltis 
at vest
£’000
lti vesting rates 
against maximum
opportunity 

2014 pascal soriot 3507 1926 94 – –
2013 pascal soriot 3344 1870 94 – –
2012 pascal soriot
1
3693
2
335 68 – –
2012 simon lowth
3
3289 1034 86 1301
4
38
4
2012 david brennan
5
4147
6
– –
7
2538 38
2011 david brennan 7863 1326 74 5386 62
2010 david brennan 9690 1583 90 6937 100
2009 david brennan 5767 1751 100 2795 62
1
 mr soriot was appointed ceo with effect from 1 october 2012
2
  this figure includes £991000 paid to compensate mr soriot in respect of his forfeited bonus opportunity for 2012 and an award of £2000000 to compensate him for his loss of lti awards both in 
respect of his previous employment
3
 mr lowth acted as interim ceo from june to september 2012 inclusive
4
 mr lowth’s lti awards which vested during 2012 were not awarded or received in respect of his performance as interim ceo
5
 mr brennan ceased to be a director on 1 june 2012
6
 this figure includes mr brennan’s pay in lieu of notice of £914000
7
  mr brennan informed the remuneration committee that he did not wish to be considered for a bonus in respect of that part of 2012 in which he was ceo the remuneration committee determined  
that no such bonus would be awarded and also that there should be no bonus award relating to his contractual notice period
annual report on remuneration  
the implementation report continued
110 astrazeneca annual report and form 20f information 2014 total shareholder return tsr
the graph below compares the tsr performance of the company over the past six years with the tsr of the ftse100 index this graph is 
rebased to 100 at the start of the relevant period as a constituent of the ftse100 this index represents an appropriate reference point for 
the company we have also included a ‘pharmaceutical peers average’ which reflects the tsr of the current comparator group and 
provides shareholders with additional context
the charts 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 threeyear performance period in respect of the psp awards made in 2013 and 2014 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 rules and for the purposes of the charts below over the last three 
months of 2014
key  
az astrazeneca av abbvie bms bristolmyers squibb 
 g sk glaxosmithkline jj johnson  johnson  
lly eli lilly mrk merck  n ov novartis pfi pfizer  
rh roche holding sa sanofiaventis
100
125
150
175
200
225
250
jan
15
jan
14
jan
13
jan
12
jan
11
jan
10
jan
09
10
0
10
20
30
40
50
gsk pfi sa bms rh jj mrk nov av lly az
tsr over a sixyear period astrazeneca tsr vs comparator group
1 january 2014 – 31 december 2014 
 
astrazeneca  
 
pharmaceutical peers average 
 
ftse 100
0
10
20
30
40
50
60
70
80
90
100
gsk sa pfi mrk lly jj rh nov az bms av
astrazeneca tsr vs comparator group
1 january 2013 – 31 december 2014 
relative importance of spend on remuneration
the table below shows the overall spend on employee remuneration and expenditure on shareholder distributions through dividends
the figures below have been calculated in accordance with the group accounting policies and drawn from either the company’s 
consolidated statement of comprehensive income on page 134 or its consolidated statement of cash flows on page 137  further 
information on the group’s accounting policies can be found from page 138
2014
m
2013
m
difference in spend
between years
m
difference in spend
between years

total employee remuneration
1
6279 5276 1003 1901
distributions to shareholders 
– dividends paid 3521 3461 60 173
1
 this figure includes the remuneration paid to all employees in the group including the executive directors but excluding the nonexecutive directors who are not employees
111 astrazeneca annual report and form 20f information 2014
corporate governance corporate governance  directors’ remuneration report
directors’ interests in shares audited
under the company’s articles all directors must within two months of their appointment acquire a beneficial interest in at least 500  
shares in the company all of the directors fulfil this requirement at the date of this directors’ remuneration report
in addition to this mandatory requirement the board imposes minimum shareholding requirements on the executive directors and set 
members the ceo is required to build a shareholding and hold shares amounting to 300 of base salary and the cfo is required to  
hold shares amounting to 200 of base salary each within five years of their date of appointment at the date of this report mr soriot  
has fulfilled this requirement due to mr dunoyer’s recent appointment as cfo he is currently working towards fulfilling the shareholding 
requirement for this role all other set members are required to build a shareholding over time and hold 125 of base salary as shares 
while in office
the board also encourages each nonexecutive director to build up over a period of three years 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 basic annual fee £575000 ann cairns who was appointed as a nonexecutive director at the company’s agm held in 
april 2014 is building her shareholding in the company to fulfil this expectation all of the other nonexecutive directors including the 
chairman had fulfilled this expectation as at 31 december 2014
the tables below show 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 as at 31 december 2014 as well as details of any director’s interests  
in options over the company’s shares all such interests were beneficial except as otherwise stated 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 none of the directors has a beneficial interest in the shares of any of the company’s subsidiaries between  
31 december 2014 and 5 february 2015 there was no change in the interests in ordinary shares shown in the tables below
executive directors
shares held options held
executive director
beneficially 
held
value of shares 
held beneficially 
as percentage 
of base salary
1
shareholding requirement
to be built up within 
5 years of date of
appointment
subject to 
performance 
conditions
subject to 
deferral
vested but 
unexercised
exercised 
during the year total
pascal soriot 215766
2
868 300 359816 40497 – – 616079
marc dunoyer 25324 170 200 174922 44151 – – 244397
1
 based on the london stock exchange closing price of 45555 pence per ordinary share on 31 december 2014
2
 since his appointment mr soriot has acquired 173800 ordinary shares using his own resources at an average price of 3564 pence per share
nonexecutive directors
the nonexecutive directors are not eligible to receive shares in the company that are the subject of performance conditions and have 
acquired their beneficial interests in the company’s shares using their own resources
nonexecutive directors
beneficial interest in ordinary 
shares at 31 december 2013 or
if later appointment date change to beneficial interest
beneficial interest in ordinary
shares at 31 december 2014 
leif johansson 28509 10500 39009
geneviève berger 900 1190 2090
bruce burlington 1553 1196 2749
ann cairns 1225 – 1225
graham chipchase 1500 400 1900
jeanphilippe courtois 2635 – 2635
rudy markham 2452 – 2452
nancy rothwell 2643 – 2643
shriti vadera 3000 3500 6500
john varley 5444 7556 13000
marcus wallenberg 63646 – 63646
annual report on remuneration  
the implementation report continued
112 astrazeneca annual report and form 20f information 2014 implementation of remuneration policy in 2015
this section sets out how the remuneration committee intends to implement our remuneration policy during 2015 
effective from 1 january 2015 mr soriot’s base salary was increased in line with increases in the uk employee population by 3  
to £1 167 000 mr soriot’s target annual bonus opportunity will remain unchanged at 100 of salary and his lti plan target will remain 
unchanged at 250 of base salary however the remuneration committee has granted an abovetarget lti award for 2015 of 285  
of base salary
effective from 1 january 2015 mr dunoyer’s base salary was increased broadly in line with increases in the uk employee population by 
2 to £694000 his target annual bonus opportunity will remain unchanged at 90 of base salary and his lti plan target award will remain 
unchanged at 200 of base salary however the remuneration committee has granted an abovetarget lti award for 2015 of 210  
of base salary
the annual bonus measures and weightings for 2015 are set out in the table below and are broadly consistent with those applicable in 
2014 however oncology has been added as a new therapy area under our return to growth measure individual performance for each  
of the executive directors will be assessed by reference to individual objectives in line with the company’s objectives for the year
the performance measures and weightings for 2015 in respect of the lti plans azip and psp will be consistent with those described  
in the long term incentives section in the remuneration policy report from page 1 19 
summary of executive directors’ remuneration for 2015
executive directors’ remuneration opportunity
pascal soriot ceo marc dunoyer cfo
base salary £1167000 £694000
pension provision 30 of base salary 24 of base salary
annual bonus target 100 of base salary normal range 0180 90 of base salary normal range 0150
lti plan award 285 of base salary
1
210 of base salary
2
1
 lti plan target remains at 250 of base salary
2
  lti plan target remains at 200 of base salary
annual bonus
achieve scientific leadership  
performance measures weighting
return to growth 
performance measures weighting
achieve group financial targets
performance measures weighting
phase ii startsprogressions 
6 of target  
bonus 
per measure
deliver brilintabrilique 
target
5 of target bonus 
per measure
achieve cash flow from 
operating activities target
10 of target bonus
phase iii investment decisions build diabetes franchise achieve core eps target 20 of target bonus
nme and major lifecycle management 
regional submissions 
deliver sales growth in
emerging markets
achieve overall  
revenue target
10 of target bonus
nme and major lifecycle management 
regional approvals
deliver respiratory goals
inlicensing outlicensing or partnering 
product opportunities
deliver japan growth target
deliver oncology 
growth target
lti plans
performance measures
psp a combination of measures focused on scientific leadership revenue generation tsr and free cash flow assessed over the relevant threeyear performance period
azip dividend and dividend cover hurdles assessed over the relevant fouryear performance period
  dividend per share of 280 maintained or increased over the performance period
  dividend cover of 15 maintained over the performance period calculated on the basis of core eps
both performance hurdles must be achieved in each year of the performance period for the award to vest 
113 astrazeneca annual report and form 20f information 2014
corporate governance corporate governance  directors’ remuneration report
summary of nonexecutive directors’ remuneration for 2015
board and committee fees for the nonexecutive directors including the chairman were reviewed in 2014 the review of the chairman’s 
fee and the fees for chairing the audit and remuneration committees took into account relevant benchmark data from ftse100 and 
ftse30 companies and the resultant fee levels in each case remain below the ftse30 median the review of the fees for the science 
committee for which there are few if any market benchmarks took account of the increased scope of its remit and associated time 
commitment the nonexecutive director fees for 2015 together with those for 2014 are set out below further information on the 
nonexecutive directors’ board and committee fees can be found on page 128 of the remuneration policy report
nonexecutive director fees in 2014 and 2015 
 2014 
£
2015 
£
chairman’s fee 537500
1
575000
basic nonexecutive director’s fee 75000 75000
senior independent nonexecutive director 30000 30000
membership of the audit committee 20000 20000
membership of the remuneration committee 15000 15000
chairman of the audit committee or the remuneration committee
2
20000 25000
membership of the science committee 10000 12000
chairman of the science committee
2
7000 10000
1
 the chairman’s fee was increased with effect from 1 july 2014 from £500000 to £575000 per annum
2
 this fee is in addition to the fee for membership of the relevant committee
additional information executive directors’ share plans
deferred bonus plan
as described from page 1 18 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 interests of directors at 31 december 2014 in ordinary shares or adss that 
are the subject of awards under these arrangements are shown below
number of 
shares
award price
pence grant date
1
vesting date
1
pascal soriot
award in respect of 2012 performance period 3799 2939 250213 250216
total at 1 january 2014 3799
award in respect of 2013 performance period 15966 3904 280314 280317
total at 31 december 2014 19765
marc dunoyer
total at 1 january 2014 –
award in respect of 2013 performance period 2679 3904 280314 280317
total at 31 december 2014 2679
1
 uk date convention applies
performance share plan psp
the interests of directors at 31 december 2014 in ordinary shares that are the subject of awards under the psp are shown below
number of 
shares
award price
pence grant date
1
vesting date
1
performance period
1
pascal soriot
2013 award 125113 3297 110613 110616 010113 – 311215
total at 1 january 2014 125113
2014 award 124066 3904 280314 280317 010114 – 311216
total at 31 december 2014 249179
marc dunoyer
2013 award 90853 3302 010813 010816 010113 – 311215
total at 1 january 2014 –
2014 award 52254 3904 280314 280317 010114 – 311216
total at 31 december 2014 143107
1
 uk date convention applies
annual report on remuneration  
the implementation report continued
114 astrazeneca annual report and form 20f information 2014 astrazeneca investment plan azip
the interests of directors at 31 december 2014 in ordinary shares that are the subject of awards under the azip are shown below
number of 
shares
award price
pence grant date
1
vesting date
1
performance period
1
pascal soriot
2013 award
2
89960 3297 110613 010121 010113 – 311216
total at 1 january 2014 89960
2014 award 20677 3904 280314 010122 010114 – 311217
total at 31 december 2014 110637
marc dunoyer
2013 award 8176 3302 010813 010121 010113 – 311216
total at 1 january 2014 8176
2014 award 8709 3904 280314 010122 010114 – 311217
total at 31 december 2014 16885
1
 uk date convention applies
2
  the azip award of 89960 shares comprises a regular 2013 award of 20852 shares and a previously announced award which replaces that originally made when mr soriot joined the company  
in october 2012 
restricted share award
on 26 october 2012 mr soriot was granted an award of 69 108 restricted shares at an award price of 2894 pence per share when 
mr soriot joined astrazeneca he forfeited awards made to him by his previous employer the remuneration committee determined that  
it was appropriate to compensate him for the value of those forfeited awards astrazeneca received an independent assessment of their 
value the restricted shares vested or will vest subject to the company’s closed trading periods as follows
  27 644 vested on 31 october 2013
  20732 vested on 1 october 2014
  20732 will vest on 1 october 2015
the interests of mr soriot at 31 december 2014 in ordinary shares that are the subject of awards under this arrangement are shown below
number of 
shares
price on 
vesting 
date
pence
pascal soriot
total at 1 january 2014 41464
partial vesting of 2012 award 20732
1
44415
total at 31 december 2014 20732
1
 following certain mandatory tax deductions mr soriot became beneficially interested in a net number of 17 985 ordinary shares
restricted share plan
on 1 august 2013 mr dunoyer was granted an award of 65505 restricted shares at an award price of 3302 pence per share when 
mr dunoyer joined astrazeneca as evp  gpps he forfeited awards made to him by his previous employer the remuneration committee 
determined that it was appropriate to compensate him for the value of those forfeited awards astrazeneca received an independent 
assessment of their value the restricted shares vested or will vest as follows
  9 103 shares vested on 15 june 2014
  41472 shares will vest on 15 june 2015
  14930 shares will vest on 1 august 2016
the interests of mr dunoyer at 31 december 2014 in ordinary shares that are the subject of awards under this arrangement are shown 
below
number of 
shares
price on 
vesting 
date
pence
marc dunoyer
total at 1 january 2014 65505
partial vesting of 2013 award 9103
1
4385
total at 31 december 2014 56402
1
 following certain mandatory tax deductions mr dunoyer became beneficially interested in a net number of 4824 ordinary shares
115 astrazeneca annual report and form 20f information 2014
corporate governance corporate governance  directors’ remuneration report
remuneration policy report
this section sets out the remuneration policy the policy that was approved by shareholders at the company’s agm in april 2014 
it is intended that the policy shall remain in effect for a period of three years from 1 january 2015
the policy set out below has not been amended since its approval by shareholders in april 2014 other than to show changes to individual 
remuneration in 2015 in the remuneration scenarios for executive directors section on page 123 which remain within policy however 
mindful of shareholder commentary on the policy since its approval the remuneration committee has sought to clarify certain aspects  
of the policy in relation to its approach to recruitment remuneration for executive directors and has adopted ‘operating guidelines’ with 
effect from 1 january 2015 identified on page 124 which do not form part of the company’s policy as approved by shareholders these 
clarifications are marked in bold in this policy report
setting the company’s policy
the remuneration committee is responsible for setting overall remuneration policy and makes decisions about specific remuneration 
arrangements in the broader context of employee remuneration throughout the group all roles within the organisation are benchmarked 
against comparable roles in similar organisations and in the employee’s local market to ensure the company is paying fairly at all levels 
executive directors’ remuneration arrangements are benchmarked against a global pharmaceutical peer group and the ftse30 each year 
the company actively engages with its employees either on a groupwide basis or in the context of smaller focus groups in order to solicit 
feedback generally and on a wide range of specified issues including pay 
while the remuneration committee did not consult with employees when determining the executive directors’ remuneration policy it does 
annually review group remuneration data including ratios of average pay to senior executive pay bonus data gender and geographical 
data in relation to base salaries and variable compensation and aggregate data about the shareholding levels of senior managers many 
employees are also shareholders in the company and therefore had the opportunity to vote at the 2014 agm on this remuneration policy 
report in reviewing the base salaries of executive directors the remuneration committee considers the overall level of any salary 
increases being awarded to employees in the executive director’s local market in the relevant year 
in all aspects of its work the remuneration committee considers both the external environment in which the company operates and 
the guidance issued by organisations representing institutional shareholders it consults the company’s largest investors on general 
and specific remuneration matters and provides an annual opportunity for representatives of those investors to meet the chairman of the 
remuneration committee and other remuneration committee and board members it is the company’s policy to seek input from major 
shareholders on an ad hoc basis where significant changes to remuneration arrangements are proposed the company’s shareholders 
are encouraged to attend the company’s agm and any views expressed will be considered by the remuneration committee’s members 
the remuneration committee works with the audit committee to ensure that the group’s remuneration policies and practices achieve 
the right balance between appropriate incentives to reward good performance managing risk and the pursuit of the company’s 
business objectives 
legacy arrangements
the remuneration committee may approve remuneration payments and payments for loss of office where the terms of the payment were 
agreed before the policy came into effect or at a time when the relevant individual was not a director of the company provided that in the 
opinion of the remuneration committee the agreement was not in consideration for the individual becoming a director of the company 
this includes the exercise of any discretion available to the remuneration committee in connection with such payments
for these purposes payments include the remuneration committee satisfying awards of variable remuneration including awards over 
shares on the basis of the terms agreed at the time the award is granted
minor amendments
the remuneration committee may make minor amendments to the arrangements for the directors as described in this remuneration 
policy report for regulatory exchange control tax or administrative purposes or to take account of a change in legislation
116 astrazeneca annual report and form 20f information 2014 remuneration policy for executive directors
fixed elements of remuneration base salary benefits and pension
the company’s approach to determining and reviewing the salaries of the executive directors and the employee population as a whole is the same 
on an annual basis the salaries for individual roles are reviewed in the context of individual sustained performance and the external market astrazeneca 
participates in annual global compensation surveys which provide benchmarking data for all roles within the organisation ensuring a robust salary 
review process for all employees
the company seeks to provide an appropriate range of competitive benefits including pension to all employees including directors in the context 
of their local market
base salary
purpose and link to strategy operation maximum opportunity
base salary is intended to 
be sufficient but no more 
than necessary to attract 
retain and develop 
highcalibre individuals 
in order to deliver the 
company’s strategy
the remuneration committee determines base salary based on a number 
of factors including but not limited to
  recognition of the value of an individual’s sustained personal 
performance and contribution to the business
  the individual’s skills and experience 
  internal relativities
  conditions in the relevant external market
base salaries are normally reviewed annually to ensure they remain 
competitive with any change usually taking effect from 1 january 
there are no contractual provisions for clawback or malus of base salary
the current base salaries can be found on page 105 of the 
implementation report 
while there is no formal maximum annual base salary 
increases if any for the executive directors will normally be  
in line with the percentage increases awarded to the employee 
population within the individual’s country location 
higher increases may be made if the remuneration committee 
in its discretion considers it appropriate for example this may 
include
  increase in the scope andor responsibility of the individual’s role
  development of the individual within the role
benefits
purpose and link to strategy operation maximum opportunity
to provide market 
competitive benefits
noncash benefits are 
designed to be sufficient 
but no more generous 
than necessary to attract 
retain and develop 
highcalibre individuals in 
order to deliver the 
company’s strategy
ukbased executive directors are provided with a fund under the uk 
flexible benefits programme the fund value is based on a range of 
benefits including
  private medical insurance for partner and children
  life assurance
  permanent health insurance
  company car
  additional holidays
  other additional benefits made available by the company from time  
to time that the remuneration committee considers appropriate based  
on the executive director’s circumstances
a director may choose to take a proportion of or the entire fund as cash
nonukbased executive directors will receive a range of benefits or a 
fund of equivalent value comparable to those typically offered in their local 
market they can elect to take the fund as cash or elect one or more of 
these benefits and take the balance as cash
at its discretion for executive directors on an international assignment or 
relocating to take up other company duties the remuneration committee 
may consider support towards the reasonable costs of relocation 
at its discretion the remuneration committee may provide an allowance 
towards the reasonable fees for professional services such as legal tax 
property and financial advice the company may also fund the cost of a 
driver and car for executive directors
the company also provides directors’ and officers’ liability insurance and 
an indemnity to the fullest extent permitted by the law and the company’s 
articles 
there are no contractual provisions for clawback or malus of benefits
the current value of benefits available can be found on page 
105 of the implementation report 
the maximum value of the fund available under the uk flexible 
benefits programme will be equivalent to the cost to the 
company of the suite of benefits at the time 
the maximum value of the suite of benefits for nonukbased 
executive directors will be equivalent to the cost of the suite of 
benefits at the time 
the value of the support towards the costs of relocation will be 
the reasonable costs associated with the executive director’s 
particular circumstances
the value of the support towards the costs of professional fees 
and other costs will be the reasonable costs associated with the 
executive director’s particular circumstances
the maximum value of the directors’ and officers’ liability 
insurance and third party indemnity insurance is the cost at the 
relevant time 
while the remuneration committee has not set an overall level 
of benefit provision the remuneration committee keeps the 
benefit policy and benefit levels under review 
pension
purpose and link to strategy operation maximum opportunity
provision of retirement 
benefits to attract 
retain and develop 
highcalibre individuals 
in order to deliver the 
company’s strategy
company allocations for executive directors’ pensions will be a proportion 
of the individual’s base salary and is in line with local market practice
as part of the uk flexible benefits programme the company provides an 
allocation consisting of a percentage of the ukbased executive director’s 
base salary which the executive director can elect to pay into a pension 
scheme or take as cash the company will allocate an amount 
benchmarked to the local market 
there are no contractual provisions for clawback or malus of pension
currently the ceo and cfo receive an allocation equivalent 
to 30 and 24 of their base salaries respectively as a 
contribution towards the cost of their pension provisions 
the maximum annual allocation that may be provided to 
ukbased executive directors is 35 of base salary
nonukbased executive directors will receive a fund for the 
purpose of providing retirement benefits in line with the local 
market practice the maximum value of that fund will be a sum 
equivalent to local market practice the executive director may 
elect to take some or all of the fund as cash
117 astrazeneca annual report and form 20f information 2014
corporate governance corporate governance  directors’ remuneration report
remuneration policy for executive directors continued
variable elements of remuneration 
annual bonus
all employee bonuses are determined by reference to the group scorecard and an assessment of individual performance the group scorecard is 
designed to reflect the company’s strategy and the focus of its business activity and priorities in the performance year the performance measures are 
recommended by the ceo and determined by the remuneration committee at the beginning of each year they are designed to ensure that all eligible 
employees receive an element of reward based on the group’s overall financial and nonfinancial performance a scorecard approach ensures that all 
employees across functions and geographies are focused on the activities critical to delivering the business strategy the performance measures and 
weightings underlying the annual bonus plan will be disclosed in advance the outcomes against targets for reasons of commercial sensitivity will be 
disclosed in arrears the implementation report will identify in arrears the performance versus the objectives and the consequent levels of 
remuneration deemed appropriate by the remuneration committee 
for executive directors onethird of their pretax annual bonus is delivered in shares which are deferred for three years under the deferred bonus plan 
employees below set level receive a bonus in cash and are not required to defer a proportion in shares
annual bonus cash
purpose and link to strategy operation and framework used to assess performance maximum opportunity
the annual cash bonus 
rewards shortterm 
performance against 
specific annual group 
and individual objectives
these objectives are 
designed to facilitate the 
delivery of the company’s 
shortterm strategy and 
thereby create value 
for our shareholders 
over time
the annual cash bonus is based on group and individual performance in the relevant 
performance year
scorecard measures and targets are set annually by the remuneration committee 
based on the key strategic objectives for the year payout levels are determined by the 
remuneration committee after the year end based on performance against targets 
the performance period is one year
the performance measures form a group scorecard which is closely aligned to business 
strategy and rewards scientific commercial and financial success while we expect the 
performance measures to be largely unchanged each year the remuneration committee 
believes it is inadvisable to commit to a fixed set of measures in advance in order to retain 
flexibility to align incentives with the focus of corporate strategy in the relevant year 
the greatest weighting is typically placed on the achievement of financial targets with 
an equal weighting between the scientific and commercial growth metrics reflecting the 
importance of both sales and rd success the actual annual weighting will depend  
on the strategic priorities for the performance year 
the group scorecard is made up of a number of separate metrics within each performance 
measure each metric has a payout range associated with it including a target which is 
intended to be stretching in relation to each metric a threshold level of performance is 
specified if performance falls below this level there will be no payout for that proportion 
of the award each metric has a different weighting if none of the metrics attributable to 
a performance measure is met then a bonus payout will not be made in respect of that 
performance measure if none of the metrics is met in any of the performance measures 
then no bonus payout will be made
the board will consider company performance against the group scorecard objectives as 
well as the executive director’s individual performance in order to determine the value of the 
bonus award individual performance will be assessed by the remuneration committee on 
the basis of objective criteria established by the chairman in the case of the ceo and by 
the ceo in the case of the cfo the remuneration committee has the discretion to move 
the theoretical award up or down subject to the annual bonus award being no greater than 
the maximum percentage of base salary applicable to that award in the year in question
the remuneration committee will use its discretion to ensure that a fair and balanced 
outcome is achieved taking into account the overall performance of the company and 
the experience of its shareholders
twothirds of the annual bonus is delivered in cash and onethird is delivered in shares 
which are deferred for three years as explained opposite 
the annual bonus including the deferred share element payable for target performance for 
the ceo is currently 100 of base salary and for the cfo is currently 90 of base salary 
for bonuses awarded in respect of 2015 and subsequent years the remuneration 
committee will have discretion for up to six years from the payment date to claw back 
from individuals some or all of the cash bonus award in certain circumstances including 
i material restatement of the results of the group ii significant reputational damage 
to the group or iii serious misconduct by the individual however in the case of i and 
ii the remuneration committee may only exercise its discretion for up to two years from 
the payment date
the maximum annual amount payable to an 
executive director is 250 of base salary 
if the remuneration committee ever felt that 
it would be in the interests of shareholders 
to grant an annual bonus of an amount 
exceeding the historical maximum opportunity 
of 180 of base salary in the case of the 
ceo and 150 of base salary in the case of 
the cfo it would consult major shareholders 
in advance
118 astrazeneca annual report and form 20f information 2014 annual bonus deferred bonus plan
purpose and link to strategy operation and framework used to assess performance maximum opportunity
the deferred share 
element of the annual cash 
bonus under the deferred 
bonus plan is designed to 
align executive directors’ 
interests with those of 
shareholders 
executive directors are required to defer onethird of their pretax annual cash bonus 
into shares 
on vesting the cash value equivalent to dividends that would have been paid during 
the threeyear holding period will be paid subject to continued employment
directors must normally remain in employment for three years from grant for deferred 
shares to vest
once performance measures have been applied to determine the value of the total bonus 
no further performance measures apply to the deferred share element
for deferred share elements relating to bonuses awarded in respect of 2015 and 
subsequent years the remuneration committee has discretion 
  to reduce or cancel any portion of an unvested deferred bonus award in certain 
circumstances malus including i material restatement of the results of the group ii 
significant reputational damage to the group or iii serious misconduct by the individual 
  for up to six years from the vesting date to claw back from individuals some or all of the 
deferred bonus award in certain circumstances including i material restatement of the 
results of the group ii significant reputational damage to the group or iii serious 
misconduct by the individual however in the case of i and ii the remuneration 
committee may only exercise its discretion for up to two years from the vesting date 
the maximum deferred bonus for executive 
directors is onethird of the maximum pretax 
bonus as detailed in the annual bonus  
cash section on page 118
long term incentives ltis
overview an executive director’s target lti award is considered annually and set at a level which takes account of market analysis the remuneration 
committee has discretion to grant awards above or below target based on individual performance and potential the ceo’s current lti target is 250 
of base salary on an expected value basis and the cfo’s current lti target is 200 of base salary on an expected value basis an illustration of the 
expected value basis can be found in the remuneration scenarios for executive directors section from page 123
the company’s variable longterm arrangements for executive directors currently comprise two lti plans the psp and the azip  under each of these 
plans the maximum market value of shares that may be awarded is 500 of a participant’s base salary if the remuneration committee ever felt that 
it would be in the interests of shareholders to grant annual variable awards to an executive director with values exceeding the historical range of up to 
500 in aggregate under the lti plans it would consult major shareholders in advance currently when lti awards are granted to executive directors 
the split between the two plans is weighted in the proportion 75 psp and 25 azip 
when granting lti awards the remuneration committee applies a target as a percentage of base salary on an expected value basis for the azip  
the expected value on vesting is 100 of the value of the award at grant for the psp  the expected value on vesting is 50 of the value of the award 
at grant 
the table overleaf explains the operation minimums and maximums payable under each of these lti plans
performance measures performance measures are recommended by the ceo and determined by the remuneration committee the performance 
measures in respect of the psp are designed to drive longterm performance against the company’s strategic objectives in terms of commercial 
scientific and financial success 
in respect of the azip  dividendbased performance hurdles motivate the generation of returns for shareholders on a sustainable basis over an extended 
period of time and will be set by the remuneration committee at a level it considers appropriate at the start of the performance period the combined 
eightyear performance and holding period is designed to reflect the development cycle of a medicine and therefore to align executive reward with 
successful product development
when setting the performance measures at the start of the performance period the remuneration committee will also determine an appropriate  
payout curve if any for each measure the remuneration committee will assess performance against the performance measures to determine the 
level of payout the remuneration committee may exercise its discretion to increase or decrease the payout should it consider it appropriate subject  
to the maximum percentage of base salary applicable in the year in question the intention of the remuneration committee is to exercise judgement 
appropriately in particular so that the experience of shareholders over time is taken into account as a matter of good practice certain major 
shareholders would be consulted before any material change to the performance measures for the psp or azip are implemented
the remuneration committee seeks to ensure that on the one hand reward outcomes are not purely mechanistic but on the other that in exercising 
its discretion that exercise is not seen by employees to be arbitrary or unfair the remuneration committee’s objective is to use reward arrangements 
to drive performance by employees which supports the creation of value for shareholders
cessation of employment and other circumstances the lti plans are governed by plan rules which define how individual awards should  
be treated upon termination of an executive director’s employment see principles of payment for loss of office for executive directors section on  
page 126 provision is also made for the treatment of awards in respect of corporate activity including rights issues sale of a business outside the  
group and a change of control the treatment of awards in these circumstances is also subject to remuneration committee discretion in the event  
of a change of control an award will vest pro rata to the time elapsed between the date of grant of the award and the date of the event to the extent  
that the performance measures have been met up to the date of the event subject to the remuneration committee’s discretion to make an  
alternative determination 
other employees other employees at mid to senior levels globally are eligible for lti awards in the form of psp andor restricted stock units 
the occupants of approximately 700 senior roles in the company are currently eligible for psp awards – these are the leaders who have the ability 
directly to influence the delivery of the company’s strategic goals awards under the azip are currently granted to set members only including the 
executive directors
119 astrazeneca annual report and form 20f information 2014
corporate governance corporate governance  directors’ remuneration report
remuneration policy for executive directors continued
astrazeneca performance share plan psp
purpose and link to strategy operation and framework used to assess performance maximum opportunity
the psp is an lti plan 
designed to align the 
variable pay of our 
executive directors 
directly to the delivery 
of our mediumterm 
business strategy 
the psp provides for the grant of awards over ordinary shares or adss
vesting is dependent on the achievement of stretching threeyear performance targets 
and continued employment 
performance measures and targets under the psp are determined by the remuneration 
committee at the start of the relevant threeyear performance period and consist of a range 
of measures designed to incentivise performance in furtherance of the company’s business 
strategy the performance measures currently a combination of four measures tsr 
cumulative cash flow sales of medicines in key therapy areas and territories and innovation 
metrics are closely aligned to business strategy and reward commercial scientific and 
financial success
currently each of the four measures has an equal weighting when setting the performance 
measures at the start of the performance period the remuneration committee will allocate 
weightings to those measures as it considers appropriate taking into account strategic and 
business priorities
the threeyear performance period commences on 1 january in the year of the award 
the vesting date is the third anniversary of the date on which the award is granted a 
twoyear holding period commencing three years from the date of grant for executive 
directors will be included in the new psp rules which are being put to shareholders for 
approval at the agm in 2014 and if approved will be effective for awards made after the 
agm these awards will vest at the end of the holding period during the holding period 
no further performance measures will apply as performance has already been assessed
all the performance measures have a payout curve the payout curves are structured in 
different ways depending on the overall objective they are intended to measure typically 
performance measures are structured such that 25 of the award will vest for threshold 
level of performance the relationship between threshold target and outperformance will 
be determined by the remuneration committee at each grant of the psp and is dependent 
on whether the performance measure is science commercial or finance based an award 
will typically vest at 100 if the target usually set at upper quartile performance is achieved 
and threshold level of performance associated with any metric will be at or above a median 
level there will be other vesting points between the threshold and maximum of 100 
vesting typically on a straightline basis where the performance measures permit 
the remuneration committee may acting fairly and reasonably adjust or waive a 
performance target if an event occurs that causes it to believe that the performance target 
is no longer appropriate
payouts can range from 0 to 100 of the original award
on vesting the cash value equivalent to dividends accrued during the vesting period 
will be paid
subject to shareholder approval of the renewal of the psp at the 2014 agm for awards 
granted under the psp after the agm and in subsequent years the remuneration 
committee will have discretion 
  to reduce or cancel any portion of an unvested award in certain circumstances malus 
including i material restatement of the results of the group ii significant reputational 
damage to the group or iii serious misconduct by the individual 
  for up to six years from the third anniversary of the date of grant to claw back from 
individuals some or all of the award in certain circumstances including i material 
restatement of the results of the group ii significant reputational damage to the  
group or iii serious misconduct by the individual however in the case of i and 
ii the remuneration committee may only exercise its discretion for up to two years 
from the third anniversary of the date of grant 
under the psp plan rules the maximum 
market value of shares that may be awarded 
at the date of grant in respect of any year is 
500 of a participant’s annual base salary 
if each aspect of all of the performance 
measures is met and exceeded the 
remuneration committee currently has the 
discretion to pay out a maximum of 125 
of the value of the original award however 
the remuneration committee has determined 
that it will not exercise this discretion in relation 
to outstanding or future awards 
this feature has therefore been removed from 
the new psp rules which are being put to 
shareholders for approval at the agm in 2014
120 astrazeneca annual report and form 20f information 2014 astrazeneca investment plan azip
purpose and link to strategy operation and framework used to assess performance maximum opportunity
the combined eightyear 
performance and holding 
periods of the azip are 
influenced by the group’s 
medicine development 
cycle reflecting the long 
term investment horizons 
that are a feature of the 
pharmaceutical industry 
the azip provides for the grant of awards over ordinary shares or adss
vesting is dependent on achievement of two performance measures over a fouryear 
performance period the award is then subject to a further fouryear holding period 
payout of the award is subject to continued employment 
performance measures and targets under the azip are determined by the remuneration 
committee at the start of the relevant fouryear performance period
currently two performance measures apply dividend level and dividend cover 
both measures must be achieved for the award to vest 
if an event occurs which causes the remuneration committee acting fairly and 
reasonably to consider that a performance measure is no longer appropriate it 
may adjust that measure
the azip is operated over a fouryear performance period with a subsequent fouryear 
holding period performance periods commence on 1 january in the year of the award 
holding periods run for a period of four years starting from the end of the performance 
period and end on the eighth anniversary of the start of the performance period during 
the holding period no further performance measures apply as performance has already 
been assessed 
if both measures are achieved in each year of the performance period the award will vest 
in full at the end of the holding period if either or both of the measures are not achieved 
the award will lapse
on vesting the cash value equivalent to dividends paid during the performance and holding 
periods will be paid
for awards granted under the azip prior to the agm in 2014 the company may reduce or 
cancel some or all of the shares that are the subject of a participant’s award at any time 
during the performance or the holding period if in the opinion of the remuneration 
committee acting fairly and reasonably this is warranted by 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
in order to ensure consistency between our lti plans for awards granted under the  
azip on or after the agm and in subsequent years the remuneration committee will  
have discretion 
  to reduce or cancel any portion of an unvested award in certain circumstances malus 
including i material restatement of the results of the group ii significant reputational 
damage to the group or iii serious misconduct by the individual
  for up to six years from the end of the performance period to claw back from individuals 
some or all of the award in certain circumstances including i in the case of material 
restatement of the results of the group ii significant reputational damage to the group  
or iii serious misconduct by the individual however in the case of i and ii the 
remuneration committee may only exercise its discretion for up to two years from the  
end of the performance period
under the azip plan rules the maximum 
market value of shares that may be awarded 
at the date of grant in respect of any year is 
500 of a participant’s annual base salary
121 astrazeneca annual report and form 20f information 2014
corporate governance remuneration policy for executive directors continued
corporate governance  directors’ remuneration report
restricted shares
in certain circumstances as part of the recruitment arrangements an executive director may be awarded restricted shares there are no performance 
measures attached to awards of restricted shares because typically they will be awarded for the purpose of compensating newly recruited executive 
directors for loss of entitlements on leaving a previous employment however the remuneration committee will consider whether the lost incentives 
were subject to performance measures and their likely vesting if foregone awards were subject to performance testing then the compensatory 
astrazeneca award will normally be granted under the psp andor azip in order to align the performance conditions attaching to the award to the 
delivery of the company’s strategy restricted share awards will generally be used only when the foregone compensation was not subject to 
performance testing
the remuneration committee may divide an award of restricted shares into tranches vesting at different points and may apply performance measures 
bespoke to the individual if it considers it appropriate if it decides to attach performance conditions the performance conditions and period will be 
defined at grant
in most instances there are no performance conditions attached to these awards they will therefore vest in full if the individual remains in office  
on the vesting date 
on vesting the cash value equivalent to dividends accrued during the vesting period will be paid
there are no contractual provisions for clawback or malus of awards of restricted shares
restricted shares may be used for the same purpose on the recruitment of other employees 
astrazeneca also operates another restricted share plan the astrazeneca global restricted stock plan to provide lti awards to eligible employees 
globally currently executive directors and other senior executives are not eligible to participate in this plan
award of restricted shares
purpose and link to strategy operation and framework used to assess performance maximum opportunity
in certain circumstances 
as part of recruitment 
arrangements an 
executive director may  
be made awards of 
restricted shares this 
would ordinarily be to 
compensate for loss of 
remuneration opportunities 
suffered on leaving 
previous employment 
see above there is no maximum value of an award which may be granted 
the remuneration committee will determine the value of the 
award at grant as it considers appropriate in all the 
circumstances
restricted share plan rsp
purpose and link to strategy operation and framework used to assess performance maximum opportunity
the rsp is a lti plan 
designed to align the 
variable pay of our key 
employees excluding 
executive directors 
directly to the delivery 
of our business strategy
the rsp provides for the granting of restricted share awards to key 
employees excluding executive directors
mr dunoyer who was appointed as an executive director subsequent 
to his appointment as evp gpps was granted an award of restricted 
shares to compensate for loss of entitlements as a result of leaving his 
previous employment
under the rsp plan rules the maximum market value of shares 
that may be awarded at the date of grant in respect of any year 
is 500 of a participant’s annual base salary
the remuneration committee will determine the value 
of the award at grant as it considers appropriate in all 
the circumstances
in the case of mr dunoyer the maximum payable is 100 
of the shares awarded 65505 shares
uk employee share plans
all ukbased employees including the executive directors are eligible to participate in the saye option scheme and share incentive plan which are 
hm revenue  customs hmrc approved plans
share incentive plan sip
purpose and link to strategy operation and framework used to assess performance maximum opportunity
encouraging share 
ownership
the company operates an hmrcapproved sip whereby uk 
employees including executive directors may save a regular amount 
over one year with which to purchase partnership shares and for which 
currently a matching share is granted for every four shares purchased
partnership shares up to £125 per month from pretax pay or 
such other maximum amount as determined by the company 
within the parameters of applicable legislation
saye option scheme saye
purpose and link to strategy operation and framework used to assess performance maximum opportunity
encouraging share 
ownership
the company operates an hmrcapproved save as you earn option 
scheme whereby uk employees including executive directors may save 
a regular amount over three or five years with which to purchase shares 
currently shares are acquired at a 10 discount to the market price 
prevailing at the date of the commencement of the scheme a maximum 
discount of 20 may be made available under the scheme
up to £250 per month from posttax pay or such other maximum 
amount as determined by the company within the parameters  
of applicable legislation
122 astrazeneca annual report and form 20f information 2014 remuneration scenarios for executive directors 
the charts below illustrate how much the current executive directors could receive under different performance scenarios in 2015 
assuming a constant share price in order to compile the charts below the following assumptions have been made
minimum 
remuneration
consists of the fixed elements of remuneration only base salary taxable benefits and pension
  base salary is that applicable in 2015
  taxable benefits are taken from the corresponding figure in the directors’ single total figure remuneration table for 
2014 as set out on page 105 
  pension measured as a cash payment equivalent to 30 of base salary in the case of the ceo and 24 of base 
salary in the case of the cfo
base salary 
£’000
taxable benefits 
£’000
pension 
£’000
total 
£’000
pascal soriot 1167 108 350 1625
marc dunoyer 694 62 166 922
remuneration  
for onplan 
performance target
based on what the executive director would receive if performance were in line with the company’s expectations
  ontarget annual bonus payout of 100 of base salary for the ceo and 90 for the cfo
  lti shares which vest at an ontarget expected value of 250 of base salary for the ceo and 200 in the case 
of the cfo 
remuneration for 
outperformance 
above target
maximum
based on what the executive director would receive at stretch performance and maximum vesting of the 
performance shares
  an annual bonus payout of 180 of base salary for the ceo and 150 for the cfo
  maximum vesting of the awards made under the company’s lti plans representing 100 of the face value of the 
psp and azip awards where the psp has an expected value of 50 and the azip an expected value of 100
0 1000 2000 3000 4000 5000 6000 7000 8000 900010000
outperformance
on plan
minimum
fixed base pay pension and beneﬁts annual variable long term incentives
0 1000 2000 3000 4000 5000
outperformance
on plan
minimum
£’000 £’000
£16m
£57m
£95m
100
29 20 51
17 22 61
£09m
£29m
£47m
100
29 24 47
18 27 55
marc dunoyer pascal soriot
when granting lti awards the remuneration committee applies a target as a percentage of base salary on an expected value basis  
for the azip  the expected value on vesting is 100 of the value of the award at grant and for the psp  the expected value on vesting  
is 50 of the award at grant
when granting lti awards for the ceo we typically apply a target expected value of 250 of base salary weighted 25 in favour  
of the azip ie 625 of base salary which provides for an award at face value of 625 of base salary and 75 in favour of the psp  
ie 187 5 of base salary which provides for an award at face value of 375 of base salary accordingly the combination of the azip and 
psp awards for the ceo at an expected value of 250 provides a maximum number of shares under the awards with a face value of 
437 5 of base salary for 2015 the remuneration committee awarded an abovetarget lti award of 285 which provides for an award 
at face value of 49875 which is taken into account in the figures provided in the out performance row of the chart above
when granting lti awards for the cfo we apply a target expected value of 200 of base salary weighted 25 in favour of the azip  
ie 50 of base salary which provides for an award at face value of 50 of base salary and 75 in favour of the psp ie 150 of base 
salary which provides for an award at face value of 300 of base salary accordingly the combination of the azip and psp awards for the 
cfo at an expected value of 200 provides a maximum number of shares under the awards with a face value of 350 of base salary  
for 2015 the remuneration committee awarded an abovetarget lti award of 210 which provides for an award at face value of 
367 5 which is taken into account in the figures provided in the out performance row of the table on the chart above
123 astrazeneca annual report and form 20f information 2014
corporate governance corporate governance  directors’ remuneration report
approach to recruitment remuneration for executive directors
the company seeks to pay no more than necessary to recruit the best candidate available for a role as an executive director on the 
recruitment of a new executive director the company seeks to put in place a remuneration package which is broadly in line with the 
remuneration package applicable to relevant incumbent executive directors however in order to offer a competitive package to the most 
capable candidate the company may consider providing remuneration arrangements that exceed those of existing executive directors 
the remuneration committee may also agree to pay allowances to expatriates in line with the company’s international assignment policy 
which provides for support towards housing schooling and other relocation or assignment related costs 
the remuneration package offered to new recruits may include any element listed in the policy table above or any other element which 
the remuneration committee considers is appropriate given the particular circumstances with due respect to the interests of the 
company’s shareholders 
operating guidelines the remuneration committee is aware that the pharmaceutical industry is global and that future 
executive directors might come from organisations with very different pay structures and practices the remuneration 
committee believes that it is in the interests of shareholders to retain an element of flexibility in the recruitment policy  
to enable it to recruit the best candidates however this flexibility is limited as described below our intention is to use 
buyout awards on recruitment only to compensate a new recruit for awards which are forfeited at the previous employer 
all other aspects of the compensation opportunity of a new recruit will be subject to the maxima contained in the policy 
in considering which elements to include and in determining the approach for all relevant elements the remuneration committee will take 
into account a number of different factors including typical market practice existing arrangements for the other executive directors and 
internal relativities and market positioning 
the company may reimburse the costs of financial planning and tax advice to executive directors the company also provides  
directors’ and officers’ liability insurance and an indemnity to the fullest extent permitted by the law and the company’s articles  
to all executive directors
the company may find it necessary to compensate a new recruit for forfeiture of entitlements from a previous employer the value of such 
compensation cannot be anticipated and will depend upon a range of factors including the circumstances of the individual in question  
in such circumstances the company will seek to offer a package weighted towards equity in the company however the precise nature  
of the compensation package will depend on the type of entitlement that the recruit is foregoing and which the company will generally seek 
to compensate in kind the buyout might therefore comprise cash andor restricted shares andor lti the remuneration committee will 
obtain and take into account independent valuations of the entitlements to determine the appropriate level of compensation
shares which could be offered to the new recruit would be granted under lti plans available at the time or under a plan specific to that 
individual as permitted under the financial conduct authority’s listing rules performance measures may apply to such share awards 
the company’s policy seeks to link the performance of the executive director to the performance of the company in any given period 
the precise targets and measures will depend on the objectives of the company and the individual at that time and will be determined 
by the remuneration committee 
the company will not offer cash or shares to newly recruited executive directors as a bonus or ‘golden hello’ on joining other than 
to compensate for the loss of a previous remuneration opportunity where compensation is offered to a new recruit on his or her hire 
the company will explain the reasons for this to shareholders in a timely manner and will provide details of the payments
operating guidelines the remuneration committee will not grant cash or share awards as a ‘golden hello’ as described 
above cash or share awards granted on joining the company will be to compensate a new recruit for loss of previous 
remuneration awards only
ongoing annual variable remuneration will not exceed an award which comprises up to 250 of base salary under the annual bonus and 
up to 500 of base salary under the psp and up to 500 of base salary under the azip  if the remuneration committee ever felt that it 
would be in the interests of shareholders to grant annual variable awards to a new executive director with values exceeding the historical 
range of 0 – 680 of base salary comprising up to 180 under the annual bonus and up to 500 in aggregate under the lti plans  
it would consult major shareholders in advance
the company intends to honour all remuneration arrangements previously entered into in the case of group employees who are promoted 
to the position of an executive director 
remuneration policy for executive directors continued
124 astrazeneca annual report and form 20f information 2014 service contracts for executive directors
save as noted below it is not intended that service contracts for new executive directors will contain terms that are materially different  
from those summarised below or contained in the policy set out in this remuneration policy report the contractual obligations below  
are applicable to each of the current executive directors unless stated otherwise and to the executive directors only
notice period the company may terminate the employment of an executive director by giving not less than 12 months’ written 
notice the company may agree on the appointment of a new executive director that any notice given by the 
company will not expire prior to the second anniversary of the commencement date of the executive director’s 
appointment the company agreed to such a provision in the case of mr dunoyer 
an executive director may terminate his employment on 12 months’ written notice
payment in 
lieu of notice
the company may terminate an executive director’s contract at any time with immediate effect and pay him  
a sum in lieu of notice this sum will consist of i the base salary that the relevant executive director would  
have been entitled to receive during the notice period and ii the cost to the company of funding the executive 
director’s flexible benefit arrangements for this period including the company’s contribution in respect of pension 
the payment in lieu of notice may be paid as a lump sum or the company may decide to pay the first six months 
of the payment in lieu in equal monthly instalments with the balance paid within 30 days of the final instalment 
being paid 
garden leave if an executive director has given or been given notice of termination the company has the right to place the 
executive director on ‘garden leave’ 
summary 
termination
the company may terminate an executive director’s employment summarily in particular defined circumstances 
such as gross misconduct with no further payment
payments in 
lieu of holiday
if on termination the relevant executive director has exceeded his accrued holiday entitlement the value of this 
excess may be deducted by the company from any sums payable if the executive director has unused holiday 
entitlement the remuneration committee has discretion to require the executive director to take such unused 
holiday during any notice period or make a payment in lieu of it calculated in the same way as the value of any 
excess holiday
directors’ and 
officers’ liability 
insurance
directors’ and officers’ liability insurance and an indemnity to the fullest extent permitted by the law and the 
company’s articles is provided to the executive directors for the duration of their employment and for a minimum 
of five years following termination
deemed 
treatment 
under azip 
and restricted 
share award
in respect of awards made to compensate mr soriot for loss of remuneration opportunity at his previous  
employer if mr soriot gives notice of termination of his employment after the end of the performance period under 
the azip but before the end of the holding period the award under the azip will vest on the earlier of the end of 
the holding period and the end of the period of 24 months from the date of cessation of employment unless the 
remuneration committee determines otherwise if mr soriot’s employment is terminated by the company other 
than in the event of prescribed misconduct events his restricted share award will continue to subsist
125 astrazeneca annual report and form 20f information 2014
corporate governance corporate governance  directors’ remuneration report
principles of payment for loss of office for executive directors
the company does not make additional payments for loss of office other than as appropriate payments in lieu of notice as described 
above or payments in respect of damages if the company terminates an executive director’s service contract in breach of contract  
taking into account as appropriate the director’s ability to mitigate his loss the remuneration committee has discretion to award 
payments in certain circumstances as set out below depending on the nature of the termination and the executive director’s performance 
the lti plans are governed by plan rules which define how individual awards under those plans should be treated upon termination of 
employment provision is also made for the treatment of awards in respect of corporate activity including sale of a business outside the 
group the treatment of awards in these circumstances may also be subject to remuneration committee discretion generally awards 
under lti plans will only be allowed to vest for those executive directors who leave the company by mutual agreement for example in 
circumstances of illhealth injury disability redundancy or retirement or where employment terminates by reason of the executive 
director’s death see the table opposite for further information in addition to any payment in lieu of notice the individual components of 
remuneration and other payments which may be payable on loss of office are set out below subject to the terms of any applicable bonus 
rules or share incentive plan rules
  annual bonus  
an executive director may receive a bonus for the performance year in which he leaves the company typically this sum will reflect  
an ontarget bonus prorated for the part of the year in which he worked this is at the discretion of the remuneration committee and  
will depend on the circumstances including an assessment of the executive director’s performance in the relevant period and the 
circumstances of his departure the deferred share element of previous bonuses granted and any deferred share element of the bonus 
awarded in respect of the departing year may still vest for the benefit of the departing executive director at the end of the period of 
deferral despite the fact that the executive director did not work for the entirety of this period the remuneration committee has the 
discretion to accelerate andor retain the deferral period and allow shares to vest for the benefit of the executive director on his departure 
andor in accordance with the vesting schedule as the case may be the remuneration committee will decide whether it is appropriate  
in the circumstances for these shares to vest for the benefit of the departing executive director 
  lti plans 
the rules of the lti plans envisage circumstances under which some all or none of an executive director’s shares held under lti plans 
will vest in connection with his departure the exact timing and number of shares vesting will depend on the circumstances including  
the executive director’s reason for leaving as set out in the table opposite and may be subject to remuneration committee discretion 
depending on what it considers to be fair and reasonable in the circumstances 
  restricted share awards and awards under the rsp 
the treatment on termination will depend upon the terms of the individual executive director’s awards on recruitment the remuneration 
committee has discretion to determine the treatment at the time of departure based on what it considers to be fair and reasonable in the 
circumstances
  nonstatutory redundancy payment 
executive directors are not entitled to nonstatutory redundancy payments
  pension contributions and other benefits 
pension contributions and other benefits for executive directors will be payable up to the termination date or as part of a payment in lieu 
of notice as described on page 125
  payments in relation to statutory rights 
the amount considered reasonable to pay by the remuneration committee in respect of statutory rights may be included in the overall 
termination payment
  payments required by law 
the company may pay damages awards fines or other compensation awarded to or in respect of an executive director by any 
competent court or tribunal or other payments required to be made on termination of employment by any applicable law regulator 
or collective labour agreement
  m i ti g a ti o n 
the departing executive director will be required to mitigate his loss by using reasonable efforts to secure new employment
  professional fees 
the company may pay an amount considered reasonable by the remuneration committee in respect of fees for legal and tax advice 
and outplacement support for the departing executive director
remuneration policy for executive directors continued
126 astrazeneca annual report and form 20f information 2014 treatment of lti and deferred bonus plan awards on cessation of employment
plan
termination by mutual agreement broadly in circumstances of illhealth injury disability 
redundancy or retirement and in the case of death and certain corporate events eg sale of 
a business outside the group other leaver scenarios
deferred bonus plan 
annual  
bonus plan
awards will vest at the end of the relevant deferral period unless the remuneration 
committee decides otherwise
ordinarily awards will lapse unless the 
remuneration committee exercises its 
discretion to apply the treatment for leavers  
by mutual agreement
psp
where cessation of employment occurs within three years of the date of grant awards will 
vest pro rata to the time elapsed between the date of grant of the award and the date of 
cessation of employment at the end of the performance period after performance has been 
assessed to the extent that the performance targets measured over the performance 
period has been met 
where cessation of employment occurs during any holding period the award will vest in 
respect of all the shares that continue to be subject to the award as soon as practicable 
following the cessation of employment
however the remuneration committee has discretion to permit the award to vest 
immediately on cessation of employment where that cessation occurred as a result  
of one of the events mentioned above to the extent that the performance targets has  
in the opinion of the remuneration committee been satisfied from the date of grant  
to the date of cessation of employment 
however if the remuneration committee believes that exceptional circumstances warrant 
this it may exercise its discretion to vest the award on another basis
ordinarily awards will lapse unless the 
remuneration committee exercises its 
discretion to preserve all or part of an award 
and apply the default treatment for leavers by 
mutual agreement as described in this table
this discretion will not be exercised in the  
case of dismissal for gross misconduct 
azip
death illhealth injury or disability
  in the performance period the award will vest as soon as practicable following the 
cessation of employment prorated to take into account the period elapsed between  
the date of grant and the date of cessation of employment relative to the performance 
period and prorated to take into account the satisfaction of any performance measures 
as agreed by the remuneration committee 
  in the holding period the award will vest in respect of all the shares that continue to be 
subject to the award as soon as practicable following the cessation of employment
redundancy retirement or certain corporate events eg sale of a business outside  
the group
  in the performance period the award will vest at the later of the end of the performance 
period and the end of the period of 24 months from the date of cessation of employment 
to the extent any performance measures have been met by the end of the performance 
period and prorated to take into account the period elapsed between the date of grant 
and the date of cessation of employment relative to the performance period 
  in the holding period the award will vest in respect of all shares that continue to be subject 
to the award at the earlier of the end of the holding period and the end of the period of  
24 months from the date of cessation of employment where the remuneration 
committee terminates an executive director’s employment other than for gross 
misconduct during the holding period the awards will vest on the same basis
in each case described above the remuneration committee has discretion to vest the 
award or part of the award on a different basis
ordinarily awards will lapse unless the 
remuneration committee exercises its 
discretion to apply the default treatment for 
leavers by reason of redundancy or retirement 
described in this table 
restricted shares 
and awards under 
the rsp
awards will lapse unless the remuneration committee exercises its discretion to preserve 
all or part of an award
in relation to awards granted on or after 3 february 2014 and where that award was 
granted at the time of the executive director’s recruitment to the company in compensation 
for any awards or bonuses forfeited at his previous employer the award will vest on the date 
his employment ceases prorated to take into account the period elapsed between the date 
of grant and the date of cessation of employment unless the remuneration committee 
decides not to prorate or to prorate on some other basis
ordinarily awards will lapse unless the 
remuneration committee exercises its 
discretion to preserve all or part of an award
127 astrazeneca annual report and form 20f information 2014
corporate governance corporate governance  directors’ remuneration report
remuneration policy for nonexecutive directors
nonexecutive directors including the chairman receive annual board fees additional fees are also payable for membership and 
chairmanship of a board committee nonexecutive directors are not eligible for performancerelated bonuses or the grant of share 
awards or options no pension contributions are made on their behalf the annual board fees applicable to nonexecutive directors during 
2013 are set out below fees applicable in future years will be set out in the corresponding year’s implementation report the remuneration 
of nonexecutive directors is determined by the chairman and the executive directors the remuneration of the chairman is determined  
by the other members of the remuneration committee and the senior independent nonexecutive director 
no director is involved in any decision relating to his or her own remuneration
annual board and committee fees
purpose and link to strategy operation maximum opportunity
the annual fees are 
intended to be sufficient 
but no more than 
necessary to attract 
retain and develop 
highcalibre individuals
nonexecutive directors including the chairman receive annual board fees and additional fees 
for membership and chairmanship of a board committee 
the individual fees paid to a nonexecutive director are subject to periodic review and may be 
increased in the future to ensure that they remain sufficient to attract highcalibre individuals while 
remaining fair and proportionate while nonexecutive directors currently receive their fees in 
cash the company reserves the right to award part or all of their fees in shares
there are no contractual provisions for clawback or malus of fees
nonexecutive director fees in 2013 
£
chairman’s fee 500000
basic nonexecutive director’s 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
the maximum fees payable in 
aggregate to the nonexecutive 
directors may not exceed £2250000 
per year under the company’s 
articles as approved by the 
company’s shareholders
benefits
purpose and link to strategy operation maximum opportunity
intended to attract and 
retain highcalibre 
individuals
the company also provides directors’ and officers’ liability insurance and an indemnity to the 
fullest extent permitted by the law and the company’s articles and may also reimburse the costs 
of financial planning and tax advice
the maximum amount payable in 
respect of these costs and cost of 
insurance will be the reimbursement 
of the directors’ benefits grossed up 
for any tax payable by the individual 
other costs and expenses
purpose and link to strategy operation maximum opportunity
intended to reimburse 
individuals for legitimately 
incurred costs and 
expenses
in addition to the chairman’s fee a proportion of the office costs of the chairman are reimbursed 
in 2013 this amounted to £40000 the amount of office costs to be reimbursed each year will  
be determined at the discretion of the remuneration committee based on an assessment of the 
reasonable requirements of the chairman the remuneration committee has the discretion to 
approve contributions by the company to office costs of other nonexecutive directors in 
circumstances where such payments are deemed proportionate and reasonable
the company will pay for all travel including travel to the company’s offices hotel and other 
expenses reasonably incurred by nonexecutive directors in the course of the company’s 
business for example professional fees such as secretarial support and reimbursement for 
domestic security arrangements such as lights and alarms following a security assessment
there are no contractual provisions for clawback or malus of other costs and expenses
the maximum amounts payable in 
respect of these costs and expenses 
will be the reimbursement of the 
directors’ costs and expenses 
grossed up for any tax payable 
by the individual
letters of appointment
none of the nonexecutive directors has a service contract but all have letters of appointment in accordance with the articles following 
their appointment all directors must retire at each agm and may present themselves for election or reelection the company is mindful  
of the independence provisions of the uk corporate governance code and in this regard it is anticipated that nonexecutive directors’ 
overall tenure will not normally exceed nine years the chairman may terminate his appointment at any time with three months’ notice 
none of the nonexecutive directors has a notice period or any provision in his or her letter of appointment giving him or her a right to 
compensation payable upon early termination of appointment
on behalf of the board
a c n kemp 
company secretary 
5 february 2015
128 astrazeneca annual report and form 20f information 2014 astrazeneca annual report and form 20f information 2014 129
  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
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 strategic 
report directors’ remuneration report 
corporate governance report and audit 
committee report that complies with that 
law and those regulations
the directors are responsible for preparing 
this 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 gaap
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
preparation of the financial statements  
and directors’ responsibilities
the directors are responsible for the 
maintenance and integrity of the corporate 
and financial information included on our 
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 
5 february 2015
pascal soriot 
director
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
the directors assessed the effectiveness  
of astrazeneca’s internal control over  
financial reporting as at 31 december  
2014 based on the criteria set forth by the 
committee of sponsoring organizations  
of the treadway commission in internal 
controlintegrated framework 2013 based 
on this assessment the directors believe 
that as at 31 december 2014 the internal 
control over financial reporting is effective 
based on those criteria
kpmg llp an independent registered  
public accounting firm has audited the 
effectiveness of internal control over financial 
reporting as at 31 december 2014 and as 
explained on page 130 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 
directors’ responsibilities for and report on 
internal control over financial reporting
financial statements
financial statements astrazeneca annual report and form 20f information 2014 130
opinions and conclusions arising 
from our audit
1 our opinion on the group financial 
statements is unmodified
we have audited the group financial 
statements of astrazeneca plc for the  
year ended 31 december 2014 set out on 
pages 134 to 189 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 2014 
and of its profit for the year then ended 
  have been properly prepared in 
accordance with international financial 
reporting standards ifrss as adopted 
by the european union eu and
  have been prepared in accordance with 
the requirements of the companies act 
2006 and article 4 of the ias regulation 
2 separate opinion in relation to ifrss as 
issued by the international accounting 
standards board iasb
as explained in the group accounting policies 
section of the group financial statements set 
out on pages 138 to 142 the group in 
addition to complying with its legal obligation 
to apply ifrss as adopted by the eu has 
also applied ifrss as issued by the iasb
in our opinion the group financial 
statements comply with ifrss as issued  
by the iasb
independent auditor’s report to the members 
of astrazeneca plc only 
3 our assessment of risks of 
material misstatement
we summarise below the risks of material 
misstatement that had the greatest effect  
on our audit our key audit procedures 
to address those risks and our findings  
from those procedures in order that the 
company’s members as a body may better 
understand the process by which we arrived 
at our audit opinion our findings are the 
result of procedures undertaken in the 
context of and solely for the purpose of our 
statutory audit opinion on the group financial 
statements as a whole and consequently  
are incidental to that opinion and we do  
not express discrete opinions on separate 
elements of the group financial statements 
revenue recognition 26095m
refer to page 98 audit committee report 
page 138 accounting policy pages 143 and 
149 financial disclosures and page 82 
financial risk management
the risk
revenue recognition is one of the key 
judgmental areas for our audit particularly  
in respect of estimates made for rebates 
chargebacks and returns under contractual 
and regulatory requirements in the united 
states of america ‘us’ which are deducted  
in arriving at revenue
our response
our principal audit procedures included 
testing the group’s controls surrounding 
revenue recognition and key manual and 
systemsbased controls in the ordertocash 
transaction cycle this included 
reconciliations between sales systems 
and the general ledger assessing whether 
appropriate revenue recognition policies are 
applied through comparison with accounting 
standards and performing testing over 
revenue at significant components which 
included analysis of product sales year on 
year corroborating movements compared 
with expectations and inspection of contracts 
with customers our audit work in respect of 
the accrual for us rebates chargebacks and 
returns involved testing key controls including 
the group’s review of claims credits and 
system accrual rates we also assessed 
the accuracy of the accrual calculation 
corroborated inputs and key assumptions 
both to internal and independent sources 
and considered the historical accuracy of the 
accrual in addition due to the reduced 
profitability of the group we scoped in an 
additional component medimmune llc 
for the first time for the latter procedures 
we also assessed the adequacy of the 
group’s disclosures of its revenue recognition 
policy the judgment involved and other 
related disclosures
kpmg llp 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 190
the report set out below is provided in 
compliance with international standards on 
auditing uk and ireland kpmg llp has 
also issued reports in accordance with 
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 as at 31 december 2014 
sarbanesoxley act section 404 the 
directors’ statement on internal control over 
financial reporting is set out on page 129
auditor’s reports on the financial statements 
and on internal control over financial reporting 
sarbanes‑oxley act section 404
financial statements astrazeneca annual report and form 20f information 2014 131
our findings
in determining the appropriate revenue 
recognition policy to be applied in calculating 
rebates chargebacks and returns under 
contractual and regulatory requirements 
there is room for judgment and we found  
that within that the group’s judgment  
was balanced we found the assumptions 
used and the resulting estimates to be 
balanced other than our findings in relation  
to the opening position at medimmune  
we also found no errors in the yearend 
rebate accruals 
we have reported an audit difference 
in respect of the rebate calculation 
methodology and assumptions at the start  
of the year at medimmune for its principal 
product which led to an opening over
accrual of liability of 40m this has been 
adjusted and consequently included in 
revenue this year we also consequently 
increased the scope and depth of our audit 
procedures at medimmune from that 
originally planned 
we found the disclosures on revenue 
recognition to be extensive 
carrying value of intangible assets 
20981m
refer to page 98 audit committee report 
page 141 accounting policy page 153  
financial disclosures and page 84 financial 
risk management
the risk
the group has significant intangible  
assets arising from the acquisition of  
products both launched and in development 
recoverability of these assets is based on 
forecasting and discounting future cash 
flows which are inherently highly judgmental 
for products in development the main risk  
is achieving successful trial results and 
obtaining required regulatory approvals for 
launched products the key risk is the ability 
to successfully commercialise the individual 
product concerned 
our response
in this area our principal audit procedures 
included testing the group’s controls 
surrounding intangible asset impairments  
and evaluating the group’s assumptions  
used in assessing the recoverability of 
intangible assets in particular revenue 
and cash flow projections useful economic 
lives and discount rates we also performed 
sensitivity analysis over individual intangible 
asset models where there was a higher  
risk of impairment to assess the level of 
sensitivity to key assumptions and focus  
our work in those areas for products in 
development a key assumption is the 
probability of obtaining the necessary clinical 
and regulatory approvals our procedures for 
products in development included critically 
assessing the reasonableness of the group’s 
assumptions through consideration of trial 
readouts regulatory announcements and the 
group’s internal governance and approval 
process we also interviewed a range of key 
research development and commercial 
personnel and compared the assumptions  
with industry practice where available for 
launched products we challenged key 
assumptions including the size of the 
therapeutic area market the product’s 
projected share of this and expected pricing 
and associated costs our procedures also 
included holding discussions with relevant 
management personnel and challenging 
management’s statements by reviewing 
analyst commentaries consensus forecasts 
and retrospective assessment of the accuracy 
of the group’s projections we also assessed 
the adequacy of related disclosures in the 
group’s financial statements
our findings
we found the group’s assumptions and  
the resulting estimates to be balanced  
we found that the disclosures proportionately 
describe the inherent degree of subjectivity  
in the estimates and the potential impact on 
future periods of revisions to these estimates
litigation and contingent liabilities 
provisions of 74m
refer to page 98 audit committee report 
page 141 accounting policy page 182  
financial disclosures and page 84 financial 
risk management
the risk
in the normal course of business litigation 
and contingent liabilities may arise from 
productspecific and general legal 
proceedings from guarantees government 
investigations or from environmental liabilities 
connected with the group’s current or  
former sites the amounts involved are 
potentially material and the application of 
accounting standards to determine the 
amount if any to be provided as a liability  
is inherently subjective
our response
having made enquires of the directors to 
obtain their view on the status of significant 
legal matters our principal audit procedures 
included testing the group’s controls 
surrounding litigation and contingent 
liabilities assessment of correspondence 
with the group’s external counsel on all 
significant legal cases and discussions 
with external counsel where necessary 
in addition we obtained formal confirmations 
from the group’s external counsel for all 
significant litigation used our own forensic 
and compliance specialists to assess the 
group’s compliance logs and reports to 
identify actual and potential noncompliance 
with laws and regulations both those specific 
to the group’s business and those relating  
to the conduct of business generally we then 
analysed correspondence with regulators 
reviewed legal expenses incurred during the 
year monitored external sources and 
considered management’s assessment of  
the probability of defending any litigation  
and the reliability of estimating any obligation 
we also assessed whether the group’s 
disclosures detailing significant legal 
proceedings adequately disclose the  
potential liabilities of the group
our findings
whilst the outcome of these litigation matters 
is inherently uncertain in each case we found 
that the group applied balanced judgments 
on a case by case basis in assessing 
whether or not a provision should be 
recognised we found that the assumptions 
used and the resulting liability recorded to be 
balanced we found that the group gives 
extensive disclosure on the potential liability  
in excess of that recognised in the financial 
statements and the significant but 
unquantifiable contingent liability in respect  
of these litigation matters
tax provisioning 2275m
refer to page 99 audit committee report 
page 139 accounting policy page 187  
financial disclosures and page 85 financial 
risk management
the risk
due to the group operating in a number of 
different tax jurisdictions and the complexities 
of transfer pricing and other international tax 
legislation accruals for tax contingencies 
require the directors to make judgments  
and estimates in relation to tax issues 
and exposures
our response
in this area our principal audit procedures 
included testing the group’s controls 
surrounding tax provisioning and assessment 
of correspondence with the relevant tax 
authorities and the use of our own local  
and international tax specialists to analyse 
and challenge the assumptions used by 
management to determine tax provisions 
based on our knowledge and experiences of 
the application of the relevant legislation by 
authorities and courts we also assessed the 
adequacy of the group’s disclosures in 
respect of tax and uncertain tax positions
our findings
we found the group’s estimate of the 
amounts to be recognised as tax liabilities  
to be conservative and that the disclosures 
provide a proportionate description of the 
current status of uncertain tax positions
financial statements astrazeneca annual report and form 20f information 2014 132
post‑ retirement benefits 2951m
refer to page 99 audit committee report 
page 139 accounting policy page 162  
financial disclosures and page 85 financial 
risk management
the risk
significant estimates are made in valuing  
the group’s postretirement defined benefit 
plans small changes in assumptions and 
estimates used to value the group’s net 
pension deficit could have a significant  
effect on the results and financial position  
of the group 
our response
our principal audit procedures included  
the testing of the group’s controls 
surrounding the postretirement defined 
benefit plans valuations and the challenge  
of key assumptions being the discount  
rate inflation rate and mortalitylife 
expectancy which are included in the 
valuation calculations of the group’s 
retirement benefit obligations in countries 
with significant defined benefit pension  
plans with the support of our own actuarial 
specialists this involved a comparison of 
these key assumptions used against our  
own internal benchmarks and externally 
derived data we obtained and assessed 
third party assurance reports on controls  
over the valuation of pension assets held  
by key custodians and compared asset 
values to third party confirmations 
additionally we assessed the adequacy 
of the group’s disclosures in respect of 
postretirement benefits
our findings
overall we found the key assumptions  
used in and the resulting estimate of the 
valuation of retirement benefit obligations 
within the group to be balanced the third 
party assurance reports did not identify 
significant deviations in the operation of 
controls over the valuation of assets which 
caused us to change the scope or extent  
of our procedures and we found no errors  
in our comparison of asset values to  
third party confirmations we found the 
disclosures in respect of postretirement 
benefits to be proportionate 
overall findings
in reaching our audit opinion on the group 
financial statements we took into account 
the findings that we describe above and 
those for other lower risk areas overall 
the findings from across the whole audit  
are that although the estimates used in 
the group financial statements are mainly 
balanced there is one conservative estimate 
as well as the audit difference identified 
above however compared with materiality 
and considering the qualitative aspects  
of the group financial statements as a 
whole our opinion on the group financial 
statements is unmodified 
4 our application of materiality and 
an overview of the scope of our audit
the materiality for the group financial 
statements as a whole was set at 94m 
determined with reference to a benchmark  
of group profit before taxation normalised  
to exclude this year’s intangible asset 
impairments and fair value movement on 
contingent consideration as disclosed in 
notes 9 and 18 of which it represents 50
we report to the audit committee any 
corrected or uncorrected identified 
misstatements exceeding 47m 025 of 
normalised group profit before taxation in 
addition to other identified misstatements that 
warranted reporting on qualitative grounds
the group operates a significant number  
of trading entities each of which is 
determined to be a reporting component 
located in 82 countries around the globe  
the operating segment disclosures in  
note 6 set out the individual significance  
of each geographical region 
we performed audits for group reporting 
purposes at 8 components and specified 
riskfocused audit procedures at one 
standalone component as well as at 36 
components serviced by the group’s shared 
service centres the latter 37 components 
were not individually financially significant 
enough to require an audit for group reporting 
purposes but were included in the scope of 
our audit in order to provide further coverage 
over relevant account balances 
the group operates four principal shared 
service centres both inhouse and 
outsourced in the uk malaysia romania 
and india which process a substantial 
proportion of the group’s transactions 
the outputs from the shared service centres 
are included in the financial information of  
the reporting components they service and 
therefore they are not separate reporting 
components each of the service centres 
financial statements  independent auditor’s report to the members of astrazeneca plc only
components’ absolute  
profitslosses  
  audits for group  
reporting purposes 74
  sp e cifie d r i s k  f o c us e d  
audit procedures 16
group total assets  
  audits for group  
reporting purposes 90
  sp e cifie d r i s k  f o c us e d  
audit procedures 3
group revenue  
scoping and coverage
materiality for the group financial statements
  audits for group  
reporting purposes 72
  sp e cifie d r i s k  f o c us e d  
audit procedures 23
proﬁt before tax plus
impairments and contingent 
consideration revaluations materiality
94m whole ﬁnancial 
statements materiality
47m misstatements reported
to the audit committee 
1880m astrazeneca annual report and form 20f information 2014 133
6 we have nothing to report in respect 
of the matters on which we are required to 
report by exception 
under isas uk and ireland we are required 
to report to you if based on the knowledge 
we acquired during our audit we have 
identified other information in this annual 
report that contains a material inconsistency 
with either that knowledge or the financial 
statements a material misstatement of fact 
or that is otherwise misleading 
in particular we are required to report to  
you if 
  we have identified material inconsistencies 
between the knowledge we acquired 
during our audit and the directors’ 
statement that they consider that the 
annual report and financial statements 
taken as a whole are fair balanced 
and understandable and provides the 
information necessary for shareholders to 
assess the group’s performance business 
model and strategy or
  the audit committee report does 
not appropriately address matters 
communicated by us to the 
audit committee
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 or 
  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 
138 in relation to going concern and
  the part of the corporate governance 
report on pages 86 to 95 relating to the 
company’s compliance with the ten 
provisions of the 2012 uk corporate 
governance code specified for our review
we have nothing to report in respect of the 
above responsibilities
7 other matter – we have reported 
separately on the parent company 
financial statements
we have reported separately on the 
parent company financial statements 
of astrazeneca plc for the year ended 
31 december 2014 and on the information  
in the directors’ remuneration report that  
is described as having been audited
is subject to specified riskfocused audit 
procedures predominantly the testing of 
transaction processing and review controls 
additional procedures are performed by 
component audit teams at certain reporting 
components to address the audit risks not 
covered by the work performed over the 
shared service centres these procedures 
are designed to address the risk of material 
misstatement identified through our group 
risk assessment processes 
this resulted in the coverage shown in 
the neighbouring charts for the remaining 
components we performed analysis at the 
group level to reexamine our assessment 
that there were no significant risks of material 
misstatement within them 
the group audit team instructed component 
and shared service centre auditors as to the 
significant areas to be covered including  
the relevant risks detailed above and the 
information to be reported back the group 
audit team approved the component 
materiality levels which ranged from 6m  
to 90m having regard to the mix of size  
and risk profile of the group across the 
components as well as considering the risk 
when aggregating misstatements that may 
exceed group materiality 
the work on all components in scope of our 
work other than on the parent company was 
performed by component and shared service 
centre auditors the audit of the parent 
company and consolidation was performed 
by the group audit team
the group audit team visited four component 
locations during the year in the uk us 
france and russia to discuss and challenge 
key risks and audit strategy video or 
telephone conference meetings were also 
held with all group reporting component 
auditors throughout the audit and the majority 
of the other component and shared service 
centre auditors that were not physically 
visited at these visits and meetings the audit 
approach findings and observations reported 
to the group audit team were discussed in 
more detail and any further work required  
by the group audit team was then performed 
by the component auditor
5 our opinion on the other matter 
prescribed by the companies act 2006 
is unmodified
in our opinion the information given in the 
strategic report and the directors’ report  
for the financial year for which the financial 
statements are prepared is consistent with 
the group financial statements 
scope and responsibilities
as explained more fully in the directors’ 
responsibilities statement set out on 
page 129 the directors are responsible for  
the preparation of the financial statements 
and for being satisfied that they give a true 
and fair view a description of the scope  
of an audit of financial statements is provided 
on the financial reporting council’s website 
at wwwfrcorgukauditscopeukprivate  
this report is made solely to the company’s 
members as a body and is subject to 
important explanations and disclaimers 
regarding our responsibilities published 
on our website at wwwkpmgcomuk
auditscopeukco2014b which are 
incorporated into this report as if set out  
in full and should be read to provide an 
understanding of the purpose of this report 
the work we have undertaken and the  
basis of our opinions
antony cates
senior statutory auditor
for and on behalf of kpmg llp 
statutory auditor 
chartered accountants
15 canada square
london
e14 5gl
5 february 2015
financial statements astrazeneca annual report and form 20f information 2014 134
notes
2014
m
2013
m
2012
m
revenue 1 26095 25711 27973
cost of sales 5842 5261 5393
gross profit 20253 20450 22580
distribution costs 324 306 320
research and development expense 2 5579 4821 5243
selling general and administrative costs 2 13000 12206 9839
other operating income and expense 2 787 595 970
operating profit 2 2137 3712 8148
finance income 3 78 50 42
finance expense 3 963 495 544
share of after tax losses in joint ventures 10 6 – –
profit before tax 1246 3267 7646
taxation 4 11 696 1376
profit for the period 1235 2571 6270
other comprehensive income
items that will not be reclassified to profit or loss
remeasurement of the defined benefit pension liability 20 766 8 13
tax on items that will not be reclassified to profit or loss 4 216 82 65
550 74 78
items that may be reclassified subsequently to profit or loss
foreign exchange arising on consolidation 21 823 166 106
foreign exchange arising on designating borrowings in net investment hedges 21 529 58 46
fair value movements on derivatives designated in net investment hedges 21 100 111 76
amortisation of loss on cash flow hedge 1 1 1
net available for sale gains taken to equity 245 69 72
tax on items that may be reclassified subsequently to profit or loss 4 50 4 4
956 39 213
other comprehensive income for the period net of tax 1506 113 135
total comprehensive income for the period 271 2458 6405
profit attributable to
owners of the parent 1233 2556 6240
noncontrolling interests 2 15 30
total comprehensive income attributable to
owners of the parent 266 2470 6395
noncontrolling interests 5 12 10
basic earnings per 025 ordinary share 5 098 204 495
diluted earnings per 025 ordinary share 5 098 204 494
weighted average number of ordinary shares in issue millions 5 1262 1252 1261
diluted weighted average number of ordinary shares in issue millions 5 1264 1254 1264
dividends declared and paid in the period 23 3532 3499 3619
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
financial statements astrazeneca annual report and form 20f information 2014 135
notes
2014
m
2013
m
2012
m
assets
noncurrent assets
property plant and equipment 7 6010 5818 6089
goodwill 8 11550 9981 9898
intangible assets 9 20981 16047 16448
investments in joint ventures 10 59 – –
other investments 11 502 281 199
derivative financial instruments 12 465 365 389
other receivables 13 1112 1867 352
deferred tax assets 4 1219 1205 1111
41898 35564 34486
current assets
inventories 14 1960 1909 2061
trade and other receivables 15 7232 7879 7629
other investments 11 795 796 823
derivative financial instruments 12 21 40 31
income tax receivable 329 494 803
cash and cash equivalents 16 6360 9217 7701
16697 20335 19048
total assets 58595 55899 53534
liabilities
current liabilities
interestbearing loans and borrowings 17 2446 1788 901
trade and other payables 18 11886 10362 9221
derivative financial instruments 12 21 2 3
provisions 19 623 823 916
income tax payable 2354 3076 2862
17330 16051 13903
noncurrent liabilities
interestbearing loans and borrowings 17 8397 8588 9409
derivative financial instruments 12 – 1 –
deferred tax liabilities 4 1796 2827 2576
retirement benefit obligations 20 2951 2261 2271
provisions 19 484 566 428
other payables 18 7991 2352 1001
21619 16595 15685
total liabilities 38949 32646 29588
net assets 19646 23253 23946
equity
capital and reserves attributable to equity holders of the company
share capital 22 316 315 312
share premium account 4261 3983 3504
capital redemption reserve 153 153 153
merger reserve 448 433 433
other reserves 21 1420 1380 1374
retained earnings 21 13029 16960 17955
19627 23224 23731
noncontrolling interests 19 29 215
total equity 19646 23253 23946
the financial statements from page 134 to 189 were approved by the board on 5 february 2015 and were signed on its behalf by
pascal soriot marc dunoyer
director  director
consolidated statement of financial position
at 31 december
financial statements astrazeneca annual report and form 20f information 2014 136
share
capital
m
share
premium
account
m
capital
redemption
reserve
m
merger
reserve
m
other
reserves
m
retained
earnings
m
total
attributable
to owners
m
non
controlling
interests
m
total
equity
m
at 1 january 2012 323 3078 139 433 1379 17888 23240 226 23466
profit for the period – – – – – 6240 6240 30 6270
other comprehensive income – – – – – 155 155 20 135
transfer to other reserves
1
– – – – 5 5 – – –
transactions with owners
dividends – – – – – 3619 3619 – 3619
issue of ordinary shares 3 426 – – – – 429 – 429
repurchase of ordinary shares 14 – 14 – – 2635 2635 – 2635
sharebased payments – – – – – 79 79 – 79
transfer from noncontrolling interests to payables – – – – – – – 10 10
dividend paid by subsidiary to noncontrolling interests – – – – – – – 11 11
net movement 11 426 14 – 5 67 491 11 480
at 31 december 2012 312 3504 153 433 1374 17955 23731 215 23946
profit for the period – – – – – 2556 2556 15 2571
other comprehensive income – – – – – 86 86 27 113
transfer to other reserves
1
– – – – 6 6 – – –
transactions with owners
dividends – – – – – 3499 3499 – 3499
issue of ordinary shares 3 479 – – – – 482 – 482
sharebased payments – – – – – 57 57 – 57
transfer from noncontrolling interests to payables – – – – – – – 6 6
dividend paid by subsidiary to noncontrolling interests – – – – – – – 3 3
net acquisition of noncontrolling interests
2
– – – – – 97 97 165 68
net movement 3 479 – – 6 995 507 186 693
at 31 december 2013 315 3983 153 433 1380 16960 23224 29 23253
profit for the period – – – – – 1233 1233 2 1235
other comprehensive income – – – – – 1499 1499 7 1506
transfer to other reserves
1
– – – – 40 40 – – –
transactions with owners
dividends – – – – – 3532 3532 – 3532
issue of ordinary shares 1 278 – – – – 279 – 279
sharebased payments – – – – – 93 93 – 93
transfer from noncontrolling interests to payables – – – – – – – 5 5
trueup to astra ab noncontrolling interest buy out – – – 15 – – 15 – 15
net movement 1 278 – 15 40 3931 3597 10 3607
at 31 december 2014 316 4261 153 448 1420 13029 19627 19 19646
1
 amounts charged or credited to other reserves relate to exchange adjustments arising on goodwill
2
 net acquisition of noncontrolling interests in 2013 includes acquisitions with cash payments of 110m due in 2014 and disposals with cash of 42m received in 2013
consolidated statement of changes in equity
for the year ended 31 december
financial statements astrazeneca annual report and form 20f information 2014 137
notes
2014
m
2013
m
2012
m
cash flows from operating activities
profit before tax 1246 3267 7646
finance income and expense 3 885 445 502
share of after tax losses of joint ventures 10 6 – –
depreciation amortisation and impairment 3282 4583 2518
decreaseincrease in trade and other receivables 311 383 755
decreaseincrease in inventories 108 135 150
increasedecrease in trade and other payables and provisions 2089 414 1311
noncash and other movements 865 258 424
cash generated from operations 8792 8719 9536
interest paid 533 475 545
tax paid 1201 844 2043
net cash inflow from operating activities 7058 7400 6948
cash flows from investing activities
upfront payments on business acquisitions 3804 1158 1187
payment of contingent consideration on business acquisitions 18 657 – –
purchase of property plant and equipment 1012 742 672
disposal of property plant and equipment 158 69 199
purchase of intangible assets 1740 1316 3947
disposal of intangible assets – 35 –
purchase of noncurrent asset investments 130 91 46
disposal of noncurrent asset investments 59 38 43
movement in shortterm investments and fixed deposits 34 130 3619
payments to joint ventures 10 70 – –
dividends received – – 7
interest received 140 114 145
payments made by subsidiaries to noncontrolling interests 10 10 20
payments received by subsidiaries from noncontrolling interests – 42 –
net cash outflow from investing activities 7032 2889 1859
net cash inflow before financing activities 26 4511 5089
cash flows from financing activities
proceeds from issue of share capital 279 482 429
repurchase of shares – – 2635
repayment of obligations under finance leases 36 27 17
issue of loans 919 – 1980
repayment of loans 750 – 1750
dividends paid 3521 3461 3665
hedge contracts relating to dividend payments 14 36 48
payments to acquire noncontrolling interest 102 – –
movement in shortterm borrowings 520 5 687
net cash outflow from financing activities 2705 3047 4923
net decreaseincrease in cash and cash equivalents in the period 2679 1464 166
cash and cash equivalents at the beginning of the period 8995 7596 7434
exchange rate effects 152 65 4
cash and cash equivalents at the end of the period 16 6164 8995 7596
consolidated statement of cash flows
for the year ended 31 december
financial statements astrazeneca annual report and form 20f information 2014 138
the financial position of the group its cash 
flows liquidity position and borrowing facilities 
are described in the financial review from 
page 70 in addition note 25 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 16 and 17 to the 
financial statements
the group has considerable financial 
resources available as at 31 december 
2014 the group has 70bn in financial 
resources cash balances of 64bn and 
undrawn committed bank facilities of 30bn 
that are available until april 2019 with only 
24bn of debt due within one year the 
group’s revenues are largely derived from 
sales of products which are covered by 
patents which provide a relatively high level  
of resilience and predictability to cash inflows 
although our revenue is expected to continue 
to be significantly impacted by the expiry of 
patents over the medium term in addition 
government price interventions in response  
to budgetary constraints are expected to 
continue to adversely affect revenues in many 
of our mature markets however we anticipate 
new revenue streams from both recently 
launched medicines and products in 
development and the group has a wide 
diversity of customers and suppliers across 
different geographic areas consequently  
the directors believe that overall the group 
is well placed to manage its business 
risks successfully
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 matters such as the 
determination of operating segments while 
estimates focus on areas such as carrying 
values estimated useful lives potential 
obligations and contingent consideration
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 
and taxation
further information on estimates and critical 
judgements made in applying accounting 
policies including details of significant 
methods and assumptions used is detailed 
in the financial review from page 70 and is 
included in notes 4 6 8 9 20 24 and 27  
to the financial statements financial risk 
management policies are detailed in note 25
revenue
revenues comprise sales and income under 
copromotion and codevelopment 
agreements
income under copromotion and co
development 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 copromotedcodeveloped 
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
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 
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 ifrss 
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 iasb
during the year the group has adopted the 
amendments to ias 32 on offsetting financial 
assets and liabilities and ias 39 on novation 
of derivatives and continuation of hedge 
accounting the group has also adopted 
ifric interpretation 21 ‘levies’ the adoption 
of these new amendments and the 
interpretation has not had a significant impact 
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 generally accepted 
accounting practices gaap these are 
presented on pages 191 to 195 and the 
accounting policies in respect of company 
information are set out on page 192
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 iasb issued ifrss therefore where 
appropriate adjustments are made in order 
to present the consolidated financial 
statements on a consistent basis
basis for preparation of financial 
statements on a going concern basis
information on the business environment 
astrazeneca operates in including the 
factors underpinning the pharmaceutical 
industry’s future growth prospects is 
included in the strategic report details 
of the product portfolio of the group 
including patent expiry dates for key 
marketed products our approach to 
product development and our development 
pipeline are covered in detail with additional 
information by therapy area in the strategic 
report and directors’ report
group accounting policies
financial statements astrazeneca annual report and form 20f information 2014 139
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 
recoverable amount which is usually zero
if subsequent to an impairment loss being 
recognised development restarts or other 
facts and circumstances change indicating 
that the impairment is less or no longer exists 
the value of the asset is reestimated and its 
carrying value is increased to the recoverable 
amount but not exceeding the original  
value by recognising an impairment reversal 
in profit
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 the group fully acquires 
through a business combination assets that 
were previously held in joint operations the 
group has elected not to uplift the book value of 
the existing interest in the asset held in the joint 
operation to fair value at the date full control is 
taken 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
future contingent elements of consideration 
which may include development and launch 
milestones revenue threshold milestones  
and revenuebased royalties are fair valued 
at the date of acquisition using decisiontree 
analysis with key inputs including probability 
of success consideration of potential delays 
and revenue projections based on the 
group’s internal forecasts unsettled amounts 
of consideration are held at fair value within 
payables with changes in fair value 
recognised immediately in profit
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
joint arrangements
the group has arrangements over which it 
has joint control and which qualify as joint 
operations or joint ventures under ifrs 11 
‘joint arrangements’ for joint operations the 
group recognises its share of revenue that it 
earns from the joint operations and its share 
of expenses incurred the group also 
recognises the assets associated with the 
joint operations that it controls and the 
liabilities it incurs under the joint arrangement 
collaboration agreements for joint ventures 
the group recognises its interest in the joint 
venture as an investment and uses the equity 
method of accounting
employee benefits
the group accounts for pensions and other 
employee benefits principally healthcare 
under ias 19 ‘employee benefits’ issued 
in 2011 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 
remeasurements of the net defined pension 
liability including actuarial gains and losses 
are recognised immediately in other 
comprehensive income
where the calculation results in a surplus  
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 taxable profit 
excludes items that are either never taxable 
or tax deductible or items that are taxable  
or tax deductible in a different period 
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 
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
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
further detail on key judgements and 
estimates is included in the financial review 
from page 70
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 2014 no amounts have  
met recognition criteria
payments to inlicence products and 
compounds from third parties for new 
research and development projects 
in process 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 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 do not 
exceed 20 years 
financial statements astrazeneca annual report and form 20f information 2014 140
however the total lives range from 
approximately 10 to 50 years for buildings 
and three to 15 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
leases are classified as finance leases  
if they transfer substantially all the risks and 
rewards incidental to ownership otherwise 
they are classified as operating leases 
assets and liabilities arising on finance  
leases are initially recognised at fair value or  
if lower the present value of the minimum 
lease payments the discount rate used in 
calculating the present value of the minimum 
lease payments is the interest rate implicit  
in the lease finance charges under finance 
leases are allocated to each reporting  
period so as to produce a constant periodic 
rate of interest on the remaining balance  
of the finance liability rentals under  
operating leases are charged to profit  
on a straightline basis
subsidiaries
a subsidiary is an entity controlled directly  
or indirectly by astrazeneca plc control  
is regarded as the exposure or rights to the 
variable returns of the entity when combined 
with the power to affect those returns
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
financial assets included in 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 receivables that are 
subject to debt factoring arrangements are 
derecognised if they meet the conditions for 
derecognition detailed in ias 39 ‘financial 
instruments recognition and measurement’
trade and other payables
financial liabilities included in 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 trade and other 
receivables and payables liabilities for 
contingent consideration under business 
combinations 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 principally comprising  
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 classified as ‘available for sale’ initially 
measured at fair value including direct 
transaction costs and subsequently 
remeasured to fair value at each reporting 
date changes in carrying value due to 
changes in exchange rates on monetary 
available for sale investments or impairments 
are recognised in profit all other changes  
in fair value are recognised in other 
comprehensive income
can be utilised this requires judgements  
to be made in respect of the availability of 
future taxable income
no deferred tax asset or liability is recognised  
in respect of temporary differences 
associated with investments in subsidiaries 
and branches 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 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 liability to interest on tax liabilities is 
provided for in the tax charge see note 27  
to the financial statements for further details
sharebased payments
all plans are assessed and have been 
classified as equity settled the grant date  
fair value of employee share plan awards is 
calculated using a modified version of the 
binomial model in accordance with ifrs 2 
‘sharebased payment’ the resulting cost is 
recognised in profit over the vesting period  
of the awards 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 over its estimated useful life  
on a straightline basis 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 
financial statements  group accounting policies astrazeneca annual report and form 20f information 2014 141
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 
recognised in 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
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 dollar exchange rates prevailing  
at the reporting date exchange differences 
arising on consolidation are recognised in 
other comprehensive income
if certain criteria are met nonus dollar 
denominated loans or derivatives 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 in the consolidated 
financial statements foreign exchange 
derivatives hedging net investments in  
foreign operations are carried at fair value 
effective fair value movements are recognised  
in other comprehensive income with  
any ineffectiveness taken to the income 
statement 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 only when it is virtually certain
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 
immediately in profit
international accounting transition
on transition to using adopted ifrss in 
the year ended 31 december 2005 the group 
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
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 or loss 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
other interestbearing loans are initially 
measured at fair value with direct transaction 
costs being amortised over the life of the 
bond 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
financial statements astrazeneca annual report and form 20f information 2014 142
in addition the following amendments have 
been issued
  amendments to ias 19 employee 
contributions effective for periods 
beginning on or after 1 july 2014
  amendments to ifrs 11 accounting 
for acquisitions of interests in joint 
operations effective for periods beginning 
on or after 1 january 2016
  amendments to ias 16 ‘property plant 
and equipment’ and ias 38 ‘intangible 
assets’ clarification of acceptable 
methods of depreciation and amortisation 
effective for periods beginning on or after  
1 january 2016
  amendments to ifrs 10 ‘consolidated 
financial statements’ and ias 28 
‘investments in associates and joint 
ventures 2011’ sale or contribution 
of assets between an investor and 
its associate or joint venture effective  
for periods beginning on or after  
1 january 2016
  amendments to ias 1 disclosure initiative 
effective for periods beginning on or after  
1 january 2016
the above amendments are not expected  
to have a significant impact on the group’s 
net results net assets or disclosures the 
amendments to ias 19 were endorsed by  
the eu on 17 december the remaining 
amendments have yet to be endorsed by  
the eu
applicable accounting standards 
and interpretations issued but not 
yet adopted
ifrs 9 ‘financial instruments’ was finalised 
by the iasb in july 2014 and is effective for 
accounting periods beginning on or after 
1 january 2018 the new standard will 
replace existing accounting standards it is 
applicable to financial assets and liabilities 
and will introduce changes to existing 
accounting concerning classification and 
measurement impairment introducing an 
expectedloss method hedge accounting 
and on the treatment of gains arising from the 
impact of credit risk on the measurement of 
liabilities held at fair value the standard has 
not yet been endorsed by the eu the 
adoption of ifrs 9 is not expected to have a 
significant impact on the group’s net results 
or net assets although the full impact will be 
subject to further assessment
ifrs 15 ‘revenue from contracts with 
customers’ was issued by the iasb in may 
2014 it is effective for accounting periods 
beginning on or after 1 january 2017 the 
new standard will replace existing accounting 
standards and provides enhanced detail  
on the principle of recognising revenue to 
reflect the transfer of goods and services  
to customers at a value which the company 
expects to be entitled to receive the 
standard also updates revenue disclosure 
requirements the standard has yet to be 
endorsed by the eu the group is currently 
assessing the impact of ifrs 15 on the 
results of the group and are considering the 
impacts if any on certain revenue items 
including but not limited to licence income 
and milestone revenues
financial statements  group accounting policies 143 astrazeneca annual report and form 20f information 2014
financial statements
1 product revenue information
2014
m
2013
m
2012
m
cardiovascular and metabolic diseases
crestor 5512 5622 6253
onglyza 820 378 323
selokentoprolxl 758 750 918
atacand 501 611 1009
brilintabrilique 476 283 89
bydureon 440 151 37
byetta 327 206 74
plendil 249 260 252
tenormin 161 197 229
others 558 372 347
total cardiovascular and metabolic diseases 9802 8830 9531
oncology
zoladex 924 996 1093
faslodex 720 681 654
iressa 623 647 611
casodex 320 376 454
arimidex 298 351 543
others 142 142 134
total oncology 3027 3193 3489
respiratory inflammation and autoimmunity
symbicort 3801 3483 3194
pulmicort 946 867 866
others 316 327 355
total respiratory inflammation and autoimmunity 5063 4677 4415
infection neuroscience and gastrointestinal
nexium 3655 3872 3944
seroquel xr 1224 1337 1509
synagis 900 1060 1038
local anaesthetics 488 510 540
losecprilosec 422 486 710
flumistfluenz 295 245 181
merrem 253 293 396
seroquel ir 178 345 1294
others 788 863 878
total infection neuroscience and gastrointestinal 8203 9011 10490
aptium oncology – – 48
total 26095 25711 27973
notes to the group financial statements 144 astrazeneca annual report and form 20f information 2014
2 operating profit
operating profit includes the following items
research and development expense
in 2013 research and development includes a reversal of the intangible asset impairment charge of 285m booked in 2011 for lynparza 
olaparib it also includes an impairment charge of 138m against bydureon following revised estimates for future sales performance  
below astrazeneca’s commercial expectations at the time of entering into our collaboration with bms on amylin products in 2012 and  
an impairment charge of 136m following astrazeneca’s decision not to proceed with regulatory filings for fostamatinib research and 
development in 2012 includes a 50m impairment following the decision by astrazeneca not to pursue a regulatory filing for tc5214 
selling general and administrative costs
in 2014 selling general and administrative costs includes a 529m charge resulting from changes in the fair value of the liabilities for  
contingent consideration arising from the acquisition of the diabetes alliance with bms the uplift in fair value reflects increased estimates  
for future sales performance for the products acquired and as a result increased estimates for future royalties payable
in july 2014 the us internal revenue service issued final regulations that affected how the annual branded pharmaceutical fee the fee 
imposed by the health care reform legislation in 2010 is recognised as a result entities covered by the legislation now accrue for the obligation 
as each sale occurs astrazeneca recorded a catchup charge of 226m in 2014 to reflect this new basis 113m of which has been recorded 
in selling general and administrative costs and 113m as a deduction from revenue
in 2013 selling general and administrative costs includes an intangible asset impairment charge of 1620m against bydureon following 
revised estimates for future sales performance as detailed above selling general and administrative costs in 2012 includes net legal provisions of 
72m in respect of net legal provision charges relating to ongoing seroquel franchise legal matters average wholesale price litigation in the 
us the toprolxl antitrust litigation and nexium commercial litigation the current status of these matters is described in note 27  these 
provisions constituted our best estimate at that time of losses expected for these matters
further details of impairment charges and reversals for 2014 2013 and 2012 are included in notes 7 and 9
other operating income and expense
2014
m 
2013
m
2012
m
royalties
income 586 621 659
amortisation 212 157 92
impairment 18 – –
net lossesgain on disposal of noncurrent assets 235 13 8
gains on disposal of product rights 285 20 255
other income 381 120 140
other expense – 22 –
other operating income and expense 787 595 970
royalty amortisation and impairment relates to income streams acquired with medimmune and from 2012 amounts relating to our 
arrangements with merck
net losses on disposal of noncurrent assets includes a loss of 292m on disposal of alderley park
restructuring costs
the tables below show the costs that have been charged in respect of restructuring programmes by cost category and type severance 
provisions are detailed in note 19
2014
m
2013
m
2012
m
cost of sales 107 126 136
research and development expense 497 490 791
selling general and administrative costs 662 805 631
other operating income and expense 292 – –
total charge 1558 1421 1558
2014
m
2013
m
2012
m
severance costs 246 632 819
accelerated depreciation and impairment 153 399 328
relocation costs 209 – –
loss on disposal of alderley park 292 – –
other 658 390 411
total charge 1558 1421 1558
other costs are those incurred in designing and implementing the group’s various restructuring initiatives including costs of decommissioning 
sites impacted by changes to our global footprint temporary leave costs during relocation internal project costs and external consultancy fees
financial statements  notes to the group financial statements 145 astrazeneca annual report and form 20f information 2014
financial statements
2 operating profit continued
financial instruments
included within operating profit are the following net gains and losses on financial instruments
2014
m
2013
m
2012
m
lossesgains on forward foreign exchange contracts 98 102 139
losses on receivables and payables 64 136 153
gains on available for sale current investments 31 13 12
total 131 21 2
3 finance income and expense
2014
m
2013
m
2012
m
finance income
returns on fixed deposits and equity securities 10 9 18
returns on shortterm deposits 23 23 24
fair value gains on debt interest rate swaps and investments 16 18 –
net exchange gains 29 – –
total 78 50 42
finance expense
interest on debt and commercial paper 383 388 404
interest on overdrafts finance leases and other financing costs 35 25 22
net interest on postemployment defined benefit plan net liabilities 92 79 93
fair value charges on debt interest rate swaps and investments – – 10
net exchange losses – 3 15
discount unwind on contingent consideration arising on business combinations note 18 391 – –
discount unwind on other longterm liabilities 62 – –
total 963 495 544
net finance expense 885 445 502
financial instruments
included within finance income and expense are the following net gains and losses on financial instruments
2014
m
2013
m
2012
m
interest and fair value adjustments in respect of debt designated at fair value through profit or loss net of derivatives 7 4 18
interest and changes in carrying values of debt designated as hedged items net of derivatives 8 5 16
interest and fair value changes on fixed and shortterm deposits equity securities and other derivatives 45 42 37
interest on debt overdrafts finance leases and commercial paper held at amortised cost 415 406 397
29m fair value losses 2013 43m fair value losses 2012 22m fair value losses on interest rate fair value hedging instruments and 29m  
fair value gains 2013 42m fair value gains 2012 21m 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
4m fair value losses 2013 77m fair value losses 2012 27m fair value losses on derivatives related to debt instruments designated at  
fair value through profit or loss and 3m fair value gains 2013 82m fair value gains 2012 18m fair value gains 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 ineffectiveness on the net investment hedge taken to profit was nil 2013 nil 2012 nil 
4 taxation
taxation recognised in the profit for the period in the consolidated statement of comprehensive income is as follows
2014
m
2013
m
2012
m
current tax expense
current year 981 1352 1756
adjustment for prior years 109 46 79
872 1398 1677
deferred tax expense
origination and reversal of temporary differences 833 699 165
adjustment to prior years 28 3 136
861 702 301
taxation recognised in the profit for the period 11 696 1376 146 astrazeneca annual report and form 20f information 2014
4 taxation continued
taxation relating to components of other comprehensive income is as follows
2014
m
2013
m
2012
m
current and deferred tax
items that will not be reclassified to profit or loss
remeasurement of the defined benefit liability 182 7 13
deferred tax impact of reduction in sweden and uk tax rates – 92 84
sharebased payments 34 17 7
other – – 1
total 216 82 65
items that may be reclassified subsequently to profit or loss
foreign exchange arising on consolidation 39 19 14
foreign exchange arising on designating borrowings in net investment hedges 150 – –
net available for sale gains recognised in other comprehensive income 64 16 18
other 3 1 8
total 50 4 4
taxation relating to components of other comprehensive income 266 78 61
the reported tax rate of 09 for the year ended 31 december 2014 benefited from a 117m adjustment in respect of prior periods following 
the settlement of the intergovernmental agreement of a transfer pricing matter the impact of the revaluation of the fair value of contingent 
consideration arising on business combinations charge of 512m with related tax credit of 157m and the benefit of the uk patent box 
legislation 35m excluding these items the reported tax rate for the year was 182
taxation has been provided at current rates on the profits earned for the periods covered by the group financial statements the 2014 prior 
period current tax adjustment relates mainly to a reduction in provisions for tax contingencies including a benefit of 117m arising from the 
intergovernmental agreement of a transfer pricing matter partially offset by tax accrual to tax return adjustments the 2013 prior period 
current tax adjustment relates mainly to an increase in provisions for tax contingencies partially offset by tax accrual to tax return adjustments 
the 2012 prior period current tax adjustment relates to a benefit of 259m arising from a number of tax settlements including settlement of  
a transfer pricing matter partially offset by an increase in provisions for other tax contingencies and tax accrual to tax return adjustments  
the 2014 prior period deferred tax adjustment relates mainly to tax accrual to tax return adjustments the 2013 prior period deferred tax 
adjustment relates to tax accrual to tax return adjustments the 2012 prior period deferred tax adjustment relates to a benefit of 102m arising 
from a number of tax settlements including settlements of a transfer pricing matter and tax accrual to tax return adjustments
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 6128m at  
31 december 2014 2013 6196m 2012 8655m
factors affecting future tax charges
as a group with 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 in 2013 the uk government 
enacted legislation to reduce the main rate of uk statutory corporation tax to 20 by 2015 details of material tax exposures and items 
currently under audit and negotiation are set out in note 27
tax reconciliation to uk statutory rate
the table below reconciles the uk statutory tax charge to the group’s total tax charge
2014
m
2013
m
2012
m
profit before tax 1246 3267 7646
notional taxation charge at uk corporation tax rate of 215 2013 2325 2012 245 268 760 1873
differences in effective overseas tax rates 195 29 80
deferred tax credit relating to reduction in sweden uk and other tax rates
1
23 59 271
unrecognised deferred tax asset 34 20 18
items not deductible for tax purposes 50 11 116
items not chargeable for tax purposes 39 10 29
other items
2
7 – –
adjustments in respect of prior periods 137 43 215
total tax charge for the year 11 696 1376
1
 the 2014 and 2013 items relate to the reduction in the uk statutory corporation tax rate from 23 to the rate of tax of 20 effective from 1 april 2015 the 2012 item relates to the reduction in the 
sweden statutory corporation tax rate from 263 to 22 effective 1 january 2013 and the uk statutory corporation tax rate from 25 the tax rate which was substantively enacted as effective 
from 1 april 2012 as at 31 december 2011 to the tax rate of 23 effective from 1 april 2013
2
 other items include the impact of internal transfers of intellectual property including recognition of deferred tax benefits acquired as part of a business combination tax charge of 304m and the 
release of certain tax contingencies following the expiry of the relevant statute of limitations tax credits of 297m 
financial statements  notes to the group financial statements 147 astrazeneca annual report and form 20f information 2014
financial statements
4 taxation continued
astrazeneca is domiciled in the uk but operates in other countries where the tax rates and tax laws are different to those in the uk the 
impact of differences in effective overseas tax rates on the group’s overall tax charge is noted above profits arising from our manufacturing 
operation in puerto rico are granted special status and are taxed at a reduced rate compared with the normal rate of tax in that territory under 
a tax incentive grant that expires in 2016
deferred tax
the movements in the net deferred tax balance during the year are as follows
intangibles
property plant
 equipment
1
m
pension and 
postretirement 
benefits
m
intercompany
inventory 
transfers
m
untaxed
reserves
2
m
losses and 
tax credits 
carried forward
6
m
accrued
expenses 
and other
m
total
m
net deferred tax balance at 1 january 2012 2164 691 999 1533 133 653 1221
taxation expense 41 105 83 333 180 65 301
other comprehensive income – 56 – – – 5 61
additions through business combinations
3
527 –  – 98 32 397
exchange 38 23 5 84 – 7 87
net deferred tax balance at 31 december 2012 2688 553 921 1284 411 622 1465
taxation expense 441 26 154 183 81 125 702
other comprehensive income – 90 – – – 7 97
additions through business combinations
4
812 –  – 81 5 726
exchange 5 21 31 13 – 8 36
net deferred tax balance at 31 december 2013 3064 510 736 1114 573 737 1622
taxation expense 543 4 6 368 44 4 861
other comprehensive income 150 215 – – – 35 330
additions through business combinations
5
147 – 35 – – 37 145
exchange 40 93 65 168 4 47 1
net deferred tax balance at 31 december 2014
7
2478 628 630 578 525 696 577
1
 includes deferred tax on contingent liabilities in respect of intangibles
2
 untaxed reserves relate to taxable profits where the tax liability is deferred to later periods
3
 the deferred tax liability of 397m relates to the acquisition of ardea as detailed in note 24
4
 the deferred tax liability of 726m relates to the acquisition of pearl therapeutics 319m omthera 198m amplimmune 205m and spirogen 4m as detailed in note 24
5
 the deferred tax liability of 145m relates to the acquisition of bms’s share of global diabetes alliance assets 28m and the acquisition of definiens group 117m
6
 includes losses and tax credits carried forward which will expire within 13 to 20 years
7
 the uk has a net deferred tax asset of 345m as at 31 december 2014 mainly in respect of the pension and post retirement benefits which has been recognised on the basis of sufficient forecast 
future taxable profits against which the deductible temporary differences can be utilised
the net deferred tax balance before the offset of balances within countries consists of
intangibles
property plant 
 equipment
m
pension and 
postretirement 
benefits
m
intercompany
inventory
transfers
m
untaxed
reserves
m
losses and 
tax credits 
carried forward
m
accrued
expenses 
and other
m
total
m
deferred tax assets at 31 december 2012 127 561 961 – 411 749 2809
deferred tax liabilities at 31 december 2012 2815 8 40 1284  127 4274
net deferred tax balance at 31 december 2012 2688 553 921 1284 411 622 1465
deferred tax assets at 31 december 2013 347 518 775 – 573 855 3068
deferred tax liabilities at 31 december 2013 3411 8 39 1114 – 118 4690
net deferred tax balance at 31 december 2013 3064 510 736 1114 573 737 1622
deferred tax assets at 31 december 2014 1212 631 657 – 525 838 3863
deferred tax liabilities at 31 december 2014 3690 3 27 578 – 142 4440
net deferred tax balance at 31 december 2014 2478 628 630 578 525 696 577
analysed in the statement of financial position after offset of balances within countries as
2014
m
2013
m
2012
m
deferred tax assets 1219 1205 1111
deferred tax liabilities 1796 2827 2576
net deferred tax balance 577 1622 1465
unrecognised deferred tax assets
deferred tax assets of 216m have not been recognised in respect of deductible temporary differences 2013 214m 2012 120m because 
it is not probable that future taxable profit will be available against which the group can utilise the benefits therefrom 148 astrazeneca annual report and form 20f information 2014
5 earnings per 025 ordinary share
2014 2013 2012
profit for the year attributable to equity holders m 1233 2556 6240
basic earnings per ordinary share 098 204 495
diluted earnings per ordinary share 098 204 494
weighted average number of ordinary shares in issue for basic earnings millions 1262 1252 1261
dilutive impact of share options outstanding millions 2 2 3
diluted weighted average number of ordinary shares in issue millions 1264 1254 1264
the earnings figures used in the calculations above are posttax
6 segment information
astrazeneca is engaged in a single business activity of biopharmaceuticals and the group does not have multiple operating segments our 
biopharmaceuticals 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 
the set established and chaired by the ceo is the vehicle through which he exercises the authority delegated to him from the board for the 
management development and performance of our business we consider that the set is astrazeneca’s chief operating decision making body 
as defined by ifrs 8 the operation of the set is principally driven by the management of the commercial operations rd and manufacturing 
and supply in addition to the ceo cfo the general counsel and the chief compliance officer the set comprises nine executive vice
presidents representing imed medimmune global medicines development north america europe international gpps operations  
information services and human resources 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 groupwide 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 rd resources are 
allocated between activities on merit based on overall therapeutic considerations and strategy under the aegis of the group’s early stage 
product committees and a single late stage product committee 
geographic areas
the following tables 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 where the legal entity resides and from which those sales were made
financial statements  notes to the group financial statements 149 astrazeneca annual report and form 20f information 2014
financial statements
6 segment information continued
revenue
2014
m
2013
m
2012
m
uk
external 1764 1819 1843
intragroup 4718 5041 6939
6482 6860 8782
continental europe
belgium 260 265 293
france 1325 1303 1393
germany 687 624 763
italy 688 729 773
spain 495 497 506
sweden 508 404 466
others 1794 1830 2003
intragroup 4763 4930 5067
10520 10582 11264
the americas
canada 583 607 1069
us 10485 10198 11074
others 1165 1177 1326
intragroup 2346 2005 2353
14579 13987 15822
asia africa  australasia
australia 657 811 1050
japan 2202 2403 2748
china 2228 1836 1511
others 1254 1208 1155
intragroup 56 52 70
6397 6310 6534
continuing operations 37978 37739 42402
intragroup eliminations 11883 12028 14429
revenue 26095 25711 27973
export sales from the uk totalled 5709m for the year ended 31 december 2014 2013 6192m 2012 8072m intragroup pricing is 
determined on an arm’s length basis
operating lossprofit lossprofit before tax
2014
m
2013
m
2012
m
2014
m
2013
m
2012
m
uk 851 171 397 1174 467 39
continental europe 1780 3055 3539 1477 3016 3502
the americas 818 591 3705 549 477 3678
asia africa  australasia 390 237 507 394 241 505
continuing operations 2137 3712 8148 1246 3267 7646
noncurrent assets
1
total assets
2014
m
2013
m
2012
m
2014
m
2013
m
2012
m
uk 5826 4525 2743 14926 16199 12316
continental europe 8764 4102 3673 11184 6924 6796
the americas 24750 24535 25767 29324 29146 30708
asia africa  australasia 874 832 803 3161 3630 3714
continuing operations 40214 33994 32986 58595 55899 53534
assets acquired
2
net operating assets
3
 
2014
m 
2013
m
2012
m
2014
m 
2013
m
2012
m
uk 2703 637 350 3002 2400 2519
continental europe 6362 747 379 4110 4168 4006
the americas
4
2732 2490 6760 20190 21583 22940
asia africa  australasia 199 236 229 1570 2002 2328
continuing operations 11996 4110 7718 28872 30153 31793
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 derivative financial instruments retirement benefit obligations and nonoperating receivables and payables
4
 assets acquired in 2012 include those related to amylin and ardea 150 astrazeneca annual report and form 20f information 2014
6 segment information continued
property plant and equipment
2014
m 
2013
m
2012
m
uk 824 1226 1353
sweden 971 1158 1183
us 2830 2048 2197
rest of the world 1385 1386 1356
continuing operations 6010 5818 6089
geographic markets
the table below shows revenue in each geographic market in which customers are located
2014
m 
2013
m
2012
m
uk 773 685 668
continental europe 6394 6521 7042
the americas 11892 11515 13075
asia africa  australasia 7036 6990 7188
continuing operations 26095 25711 27973
revenue is 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 transactions with two wholesalers 2013 one 2012 two individually represented greater than 10 of 
total revenue the value of these transactions recorded as revenue were 3261m and 2674m 2013 3166m 2012 3517m and 3155m
financial statements  notes to the group financial statements 151 astrazeneca annual report and form 20f information 2014
financial statements
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 2012 5911 8779 620 15310
capital expenditure 37 229 502 768
additions through business combinations note 24 – 4 – 4
transfer of assets into use 123 391 514 –
disposals and other movements 370 1050 49 1469
exchange adjustments 149 292 17 458
at 31 december 2012 5850 8645 576 15071
capital expenditure 21 222 565 808
additions through business combinations note 24 1 3 4 8
transfer of assets into use 67 295 362 –
disposals and other movements 275 773 7 1055
exchange adjustments 19 61 5 75
at 31 december 2013 5683 8453 771 14907
capital expenditure 34 184 874 1092
additions through business combinations note 24 213 206 96 515
transfers in from other noncurrent assets 156 124 70 350
transfer of assets into use 136 405 541 –
disposals and other movements 976 962 27 1965
exchange adjustments 334 698 123 1155
at 31 december 2014 4912 7712 1120 13744
depreciation
at 1 january 2012 2435 6450 – 8885
charge for year 280 743 – 1023
disposals and other movements 129 1116 – 1245
exchange adjustments 82 237 – 319
at 31 december 2012 2668 6314 – 8982
charge for year 331 575 – 906
impairment 7 94 – 101
disposals and other movements 73 900 – 973
exchange adjustments 19 54 – 73
at 31 december 2013 2952 6137 – 9089
charge for year 252 524 – 776
disposals and other movements 639 744 – 1383
exchange adjustments 214 534 – 748
at 31 december 2014 2351 5383 – 7734
net book value
at 31 december 2012 3182 2331 576 6089
at 31 december 2013 2731 2316 771 5818
at 31 december 2014 2561 2329 1120 6010
there were no impairment charges in 2014
impairment charges in 2013 were attributable to strategy changes affecting manufacturing operations in china and the impact of restructuring 
our site footprint in the us
there were no impairment charges in 2012
2014
m 
2013
m
2012
m
the net book value of land and buildings comprised
freeholds 2489 2656 3122
leaseholds 72 75 60
included within plant and equipment are information technology assets held under finance leases with a net book value of 74m 2013 86m 
2012 79m 152 astrazeneca annual report and form 20f information 2014
8 goodwill
2014
m 
2013
m
2012
m
cost
at 1 january 10307 10223 10186
additions through business combinations note 24 1841 77 30
exchange and other adjustments 280 7 7
at 31 december 11868 10307 10223
amortisation and impairment losses
at 1 january 326 325 324
exchange and other adjustments 8 1 1
at 31 december 318 326 325
net book value at 31 december 11550 9981 9898
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 
which is considered by the board as a reasonable period given the long development and lifecycle of a medicine 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 the methods used to determine recoverable amounts have remained consistent  
with the prior year
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 7 0 for 2014 2013 and 2012 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 2013 10 2012 10
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 2014 and 31 december 2013 and 31 december 2012
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
financial statements  notes to the group financial statements 153 astrazeneca annual report and form 20f information 2014
financial statements
9 intangible assets
product 
marketing and
distribution rights
m
other
intangibles
m
software
development
costs
m
total
m
cost
at 1 january 2012 15899 2188 1634 19721
additions through business combinations note 24 1464 – – 1464
additions – separately acquired 5228 12 212 5452
exchange and other adjustments 271 65 59 265
at 31 december 2012 22862 2135 1905 26902
additions through business combinations note 24 2045 371 – 2416
additions – separately acquired 635 – 166 801
disposals 46 – – 46
exchange and other adjustments 57 7 19 69
at 31 december 2013 25553 2499 2090 30142
additions through business combinations note 24 6926 575 – 7501
additions – separately acquired 907 25 115 1047
disposals 23 – 41 64
exchange and other adjustments 1464 287 138 1889
at 31 december 2014 31899 2812 2026 36737
amortisation and impairment losses
at 1 january 2012 6246 1474 1021 8741
amortisation for year 1039 95 162 1296
impairment 192 1 6 199
exchange and other adjustments 182 8 28 218
at 31 december 2012 7659 1578 1217 10454
amortisation for year 1498 93 188 1779
impairment 2025 – 57 2082
impairment reversals 285 – – 285
disposals 11 – – 11
exchange and other adjustments 58 11 7 76
at 31 december 2013 10944 1682 1469 14095
amortisation for year 2008 193 183 2384
impairment 81 18 23 122
disposals 23 – 41 64
exchange and other adjustments 465 240 76 781
at 31 december 2014 12545 1653 1558 15756
net book value 
at 31 december 2012 15203 557 688 16448
at 31 december 2013 14609 817 621 16047
at 31 december 2014 19354 1159 468 20981
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 2012
cost of sales 325 – – 325
research and development expense – 25 – 25
selling general and administrative costs 673 13 162 848
other operating income and expense 41 57 – 98
total 1039 95 162 1296
year ended 31 december 2013
cost of sales 502 – – 502
research and development expense – 30 – 30
selling general and administrative costs 898 4 188 1090
other operating income and expense 98 59 – 157
total 1498 93 188 1779
year ended 31 december 2014
cost of sales 701 – – 701
research and development expense – 60 – 60
selling general and administrative costs 1203 25 183 1411
other operating income and expense 104 108 – 212
total 2008 193 183 2384 154 astrazeneca annual report and form 20f information 2014
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 2012
research and development expense 185 1 – 186
selling general and administrative costs 7 – 6 13
total 192 1 6 199
year ended 31 december 2013
research and development expense 335 – – 335
selling general and administrative costs 1690 – 57 1747
total 2025 – 57 2082
year ended 31 december 2014
research and development expense 81 – – 81
selling general and administrative costs – – 23 23
other operating income and expense – 18 – 18
total 81 18 23 122
the impairment reversal of 285m booked in 2013 was recorded in research and development expense
impairment charges and reversals
in 2014 impairment charges relate to the termination or reassessment of the likelihood of success of several individual projects none of 
which had significant capitalised values
in 2013 astrazeneca commenced enrolment of the first patient in the first of several phase iii clinical programmes for lynparza olaparib  
as a result of the initiation of this programme an impairment charge of 285m taken in 2011 was reversed and the full historic carrying  
value of the asset restored to our balance sheet there are several indications currently under development for lynparza olaparib and  
at the date of the reversal of the impairment the recoverable value of the intangible asset relating to lynparza olaparib determined using value  
in use calculations as detailed below was estimated to be at least 650m above its carrying value the 2013 impairment charge of product 
marketing and distribution rights includes a charge of 1758m against the intangible asset for bydureon acquired as part of the 2012 
collaboration with bms on amylin products following revised estimates for future sales performance as part of the annual budgeting process 
that are below astrazeneca’s commercial expectations at that time of entering into the collaboration impairment charges also include 136m 
following astrazeneca’s decision not to proceed with regulatory filings for fostamatinib
the 2012 impairment of product marketing and distribution rights includes a charge of 50m following the decision by astrazeneca not to 
pursue a regulatory filing for tc5214 with a partial impairment of 150m having been taken in the prior year 2011 based on the final results  
of phase iii efficacy and tolerability studies of the compound as an adjunct therapy to an antidepressant in patients with major depressive 
disorder who do not respond adequately to initial antidepressant treatment the remaining 149m charge in 2012 relates to the termination  
of other development projects during the year 
the write downs in value of intangible assets other than those arising from termination of rd activities were determined based on value  
in use calculations using discounted riskadjusted projections of the products’ expected posttax 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 by their nature  
the value in use calculations are sensitive to the underlying methods assumptions and estimates the estimated recoverable amount of the 
acquired and in development assets exceeded their respective calculated value in use consistent with prior years as part of the impairment 
review process management has identified that reasonably possible changes in certain key assumptions including the likelihood of achieving 
successful trial results and obtaining regulatory approval for in development assets the projected market share of the therapeutic area  
and expected pricing for launched products may cause the carrying amount of the intangible assets to exceed the recoverable amount  
in addition there is a significant risk that partial impairments recognised may be subject to adjustments in future periods any resulting 
adjustments may be material in arriving at the appropriate discount rate to use for each product we adjust astrazeneca’s posttax weighted 
average cost of capital 70 for 2014 2013 and 2012 to reflect the impact of risks and tax effects specific to the individual products  
the weighted average pretax discount rate we used was approximately 13 2013 13 2012 14
financial statements  notes to the group financial statements 155 astrazeneca annual report and form 20f information 2014
financial statements
9 intangible assets continued 
significant assets
description
carrying value
m
remaining amortisation 
period
advance payment
1
product marketing and distribution rights 211 4 years
partial retirement
1
product marketing and distribution rights 485 113 years
first option
1
product marketing and distribution rights 1250 1216 years
second option
1
product marketing and distribution rights 496 12 years
intangible assets arising from the acquisition of cat
2
product marketing and distribution rights 205 1 and 6 years
rsv franchise assets arising from the acquisition of medimmune product marketing and distribution rights 3059 11 years
intangible assets arising from the acquisition of medimmune licensing and contractual income 220 25 years
intangible assets arising from the acquisition of medimmune product marketing and distribution rights 473 17 years
onglyza intangible assets acquired from bms product marketing and distribution rights 1591 9 years
forxigafarxiga intangible assets acquired from bms product marketing and distribution rights 2009 13 years
bydureon intangible assets acquired from bms product marketing and distribution rights 1335 16 years
other diabetes intangible assets acquired from bms product marketing and distribution rights 1726 819 years
intangible assets arising from the acquisition of novexel
3
product marketing and distribution rights 276 not amortised
intangible assets arising from the acquisition of ardea
3
product marketing and distribution rights 1434 not amortised
intangible assets arising from the acquisition of pearl therapeutics
3
product marketing and distribution rights 985 not amortised
intangible assets arising from the acquisition of omthera
3
product marketing and distribution rights 531 not amortised
intangible assets arising from the acquisition of amplimmune
3
product marketing and distribution rights 534 not amortised
intangible assets arising from the acquisition of spirogen research technology rights 305 9 years
intangible assets acquired from almirall product marketing and distribution rights 1363 1424 years
intangible assets arising from the acquisition of definiens research technology rights 335 15 years
1
 these assets are associated with the restructuring of the joint venture with merck
2
 cambridge antibody technology group plc
3
 assets in development are not amortised but are tested annually for impairment
arrangements with merck
in 1982 astra 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 the ‘restructuring’ under the agreements relating to the restructuring the ‘agreements’  
a us limited partnership the ‘partnership’ was formed in which merck was the limited partner and astrazeneca 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 provided merck with safeguards over the activities of the partnership and placed limitations on astrazeneca’s commercial 
freedom to operate the agreements provided in part for 
  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 
the termination arrangements and payments included 
  the advance payment 
  the partial retirement 
  the trueup 
  the loan note receivable 
  the first option 
  the second option 
astrazeneca considered 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 once all payments were made astrazeneca would 
have unencumbered discretion in its operations in the us market astrazeneca benefits under the termination arrangements from 
  the substantial freedom over products acquired or discovered after the merger of astra and zeneca in 1999 and 
  enhanced contributions from and substantial freedom over those products that have already been launched for example prilosec 
nexium brilinta pulmicort symbicort rhinocort and atacand and those that are in development 
economic benefits include relief from contingent payments and other cost efficiencies together with the strategic advantages of increased 
freedom to operate 
the intangible assets relating to purchased product rights 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 
annual contingent payments
following the exercise of the second option as detailed below all contingent payments to merck have now ceased 156 astrazeneca annual report and form 20f information 2014
9 intangible assets continued 
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 of 967m was made the advance payment has been accounted for as an intangible asset and is being 
amortised over 20 years although the rights obtained apply in perpetuity the period of amortisation of 20 years is used to reflect the typical 
timescale of development and marketing of a product 
partial retirement trueup and loan note receivable 
on 17 march 2008 astrazeneca made a net cash payment to merck of approximately 26bn in connection with the partial retirement the 
trueup and the loan note receivable this payment resulted in astrazeneca acquiring merck’s interests in certain astrazeneca products 
including pulmicort rhinocort symbicort and toprolxl astrazeneca ceasing contingent payments on these products and astrazeneca 
obtaining the ability to exploit these products and other opportunities in the respiratory therapy area intangible assets of 994m were 
recognised at the time with the balance of the net payment 1656m representing payments on account for future product rights associated 
with the first option and the second option as detailed below these ‘nonrefundable deposits’ were classified as intangible assets 
first option 
on 26 february 2010 astrazeneca exercised 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 certain products in 
development at the time principally brilinta and lesogaberan development of lesogaberan was subsequently discontinued also on 30 april 
2010 contingent payments on these products ceased with respect to periods after this date and astrazeneca obtained the ability to exploit 
these products and other opportunities in the cardiovascular and neuroscience therapy areas these rights were valued at 1829m and were 
recognised as intangible assets from 26 february 2010 1182m having been transferred from nonrefundable deposits to supplement the 
payment of 647m to merck of these rights 689m was allocated to contingent payment relief and 1140m to intangible assets reflecting the 
ability to fully exploit the products in the cardiovascular and neuroscience therapy areas the remaining nonrefundable deposits of 474m 
relate to benefits that were secured upon astrazeneca exercising the second option as detailed below
second option
the agreements provided that astrazeneca may exercise a second option to purchase merck’s interests in the merck affiliates that hold the 
limited partner and other rights referred to above exercise of the second option would result in the repurchase by astrazeneca of merck’s 
interests in prilosec and nexium in the us this option was exercisable by astrazeneca in may to october of 2012 or in 2017 or if combined 
annual sales of the two products fell below a minimum amount 
on 26 june 2012 astrazeneca and merck agreed to amend certain provisions of the agreements with respect to the second option 
the principal areas covered by the amendments were a change in the timing for astrazeneca to exercise the second option and agreement 
on the valuation methodology for setting certain aspects of the option exercise price under the amended agreements merck granted to 
astrazeneca a new second option exercisable by astrazeneca between 1 march 2014 and 30 april 2014 with closing on 30 june 2014 
options exercisable in 2017 or if combined annual sales fell below a minimum amount also remained available to astrazeneca in addition to 
this revised timing for the second option astrazeneca and merck also reached agreement on the valuation methodology for setting certain 
components of the option exercise price for a 2014 exercise 
on 30 june 2014 the second option was consummated resulting in i the termination of merck’s interests in entities that hold the us  
rights to nexium and prilosec and ii the control of these entities by astrazeneca at closing astrazeneca paid to merck a total exercise  
price of 409m 327m of which was fixed in 2012 based on a shared view by astrazeneca and merck of the forecasts for sales of nexium 
and prilosec in the us market this amount is subject to a trueup in 2018 that replaces the shared forecast with actual sales for the period 
from closing in 2014 to june 2018 at closing astrazeneca also paid to merck an administrative fee of 10m in 2018 merck will receive  
an additional administrative fee of 11m the intangible assets arising from the second option and the 474m from the first option  
detailed above in aggregate reflect the value of the ability to exploit opportunities in the gastrointestinal therapy area and relief from 
contingent payments
financial statements  notes to the group financial statements 157 astrazeneca annual report and form 20f information 2014
financial statements
10 investments in joint ventures
2014
m
2013
m
2012
m
at 1 january – – –
additions 70 – –
share of after tax losses 6 – –
exchange adjustments 5 – –
at 31 december 59 – –
on 30 april 2014 astrazeneca entered into a joint venture agreement with samsung biologics co ltd to develop a biosimilar using the 
combined capabilities of the two parties the agreement resulted in the formation of a joint venture entity based in the uk archigen biotech 
limited with a branch in south korea astrazeneca contributed 70m in cash to the joint venture entity and has a 50 interest in the joint 
venture the investment is measured using the equity method
a summarised statement of financial position for archigen biotech limited is set out below
31 december 2014
m
noncurrent assets 76
current assets 58
current liabilities 6
net assets 128
share capital 140
retained earnings 12
total equity 128
11 other investments
2014
m 
2013
m
2012
m
noncurrent investments
equity securities available for sale 502 281 199
total 502 281 199
current investments
equity securities and bonds available for sale 775 735 748
equity securities held for trading – 46 29
fixed deposits 20 15 46
total 795 796 823
the equity securities and bonds available for sale in current investments of 775m 2013 735m 2012 748m are held in a custody account 
further details of this custody account are included in note 20
impairment charges of 23m in respect of available for sale securities are included in other operating income and expense in profit 2013 
22m 2012 2m
equity securities and bonds available for sale and equity securities held for trading are held on the consolidated statement of financial 
position at fair value the fair value of listed investments is based on year end quoted market prices for unlisted investments whose fair value 
cannot be reliably measured cost is considered to approximate to fair value fixed deposits are held at amortised cost with carrying value being 
a reasonable approximation of fair value given their shortterm nature
none of the financial assets or liabilities have been reclassified in the year
fair value hierarchy
the table below analyses financial instruments contained within other investments and 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
2012
equity securities and bonds available for sale 809 – 138 947
equity securities held for trading 29 – – 29
total 838 – 138 976
2013 
equity securities and bonds available for sale 807 – 209 1016
equity securities held for trading 46 – – 46
total 853 – 209 1062
2014
equity securities and bonds available for sale 927 – 350 1277
total 927 – 350 1277 158 astrazeneca annual report and form 20f information 2014
11 other investments continued
equity securities available for sale that are analysed at level 3 include investments in private biotech companies in the absence of specific 
market data these unlisted investments are held at cost adjusted as necessary for impairments which approximates to fair value movements 
in level 3 investments are detailed below
2014
m 
2013
m
2012
m
at 1 january 209 138 159
additions 107 70 17
revaluations 95 – –
transfers out 35 – 25
disposals – 8 20
impairments and exchange adjustments 26 9 7
at 31 december 350 209 138
assets are transferred in or out of level 3 on the date of the event or change in circumstances that caused the transfer
12 derivative financial instruments
derivative financial instruments consist of interest rate swaps included in instruments designated at fair value if related to debt designated at fair 
value or instruments in a fair value hedge relationship if formally designated as in a fair value hedge relationship crosscurrency swaps included in 
instruments designated in net investment hedges currency options and forward foreign exchange contracts included below in other derivatives
noncurrent 
assets
m
current 
assets
m
current 
liabilities
m
noncurrent
liabilities
m
total
m
designated in a fair value hedge 151 – – – 151
related to instruments designated at fair value through profit or loss 162 – – – 162
designated as a net investment hedge 76 – – – 76
other derivatives – 31 3 – 28
31 december 2012 389 31 3 – 417
noncurrent 
assets
m
current
assets
m
current
liabilities
m
noncurrent
liabilities
m
total
m
designated in a fair value hedge 108 – – – 108
related to instruments designated at fair value through profit or loss 69 16 – – 85
designated as a net investment hedge 188 – – 1 187
other derivatives – 24 2 – 22
31 december 2013 365 40 2 1 402
noncurrent 
assets
m
current
assets
m
current
liabilities
m
noncurrent
liabilities
m
total
m
designated in a fair value hedge 79 – – – 79
related to instruments designated at fair value through profit or loss 82 – – – 82
designated as a net investment hedge 304 – – – 304
other derivatives – 21 21 – –
31 december 2014 465 21 21 – 465
all derivatives are held at fair value and fall within level 2 of the fair value hierarchy as defined in note 11 none of the derivatives have been 
reclassified in the year
the fair value of interest rate swaps and crosscurrency swaps is estimated using appropriate zero coupon curve valuation techniques to 
discount future contractual cash flows based on rates at current year end
the fair value of forward foreign exchange contracts and currency options are estimated by cash flow accounting models using appropriate yield 
curves based on market forward foreign exchange rates at the year end the majority of forward foreign exchange contracts for existing 
transactions had maturities of less than one month from year end 
the interest rates used to discount future cash flows for fair value adjustments where applicable are based on market swap curves at the 
reporting date and were as follows
2014 2013 2012
derivatives 12 to 23 03 to 32 06 to 20
financial statements  notes to the group financial statements 159 astrazeneca annual report and form 20f information 2014
financial statements
13 noncurrent other receivables
noncurrent other receivables of 1 1 12m 2013 1867m 2012 352m include a prepayment of 906m 2013 1276m 2012 nil which 
represents the longterm element of minimum contractual royalties payable to shionogi under the global licence agreement for crestor  
which was renegotiated in december 2013 the resulting modified royalty structure which includes fixed minimum and maximum payments  
in years until 2020 has resulted in the company recognising liabilities and corresponding prepayments for the discounted value of total 
minimum payments the current portion of the prepayment is 323m 2013 350m 2012 nil and is reported in amounts due within one year 
see note 15 noncurrent other receivables also include prepayments in relation to our research collaboration with moderna therapeutics
14 inventories
2014
m 
2013
m
2012
m
raw materials and consumables 663 570 620
inventories in process 501 659 876
finished goods and goods for resale 796 680 565
inventories 1960 1909 2061
the group recognised 3214m 2013 2981m 2012 3019m of inventories as an expense within cost of sales during the year
inventory writeoffs in the year amounted to 126m 2013 91m 2012 120m
15 current trade and other receivables
2014
m 
2013
m
2012
m
amounts due within one year
trade receivables 4816 5578 5760
less amounts provided for doubtful debts note 25 54 64 64
4762 5514 5696
other receivables 1050 684 750
prepayments and accrued income 1262 1420 923
7074 7618 7369
amounts due after more than one year
other receivables 22 110 85
prepayments and accrued income 136 151 175
158 261 260
trade and other receivables 7232 7879 7629
all financial assets included within current trade and other receivables are held on the consolidated statement of financial position at amortised 
costs with carrying value being a reasonable approximation of fair value
16 cash and cash equivalents
2014
m 
2013
m
2012
m
cash at bank and in hand 1009 1094 1304
shortterm deposits 5351 8123 6397
cash and cash equivalents 6360 9217 7701
unsecured bank overdrafts 196 222 105
cash and cash equivalents in the cash flow statement 6164 8995 7596
the group holds 114m 2013 119m 2012 301m of cash and cash equivalents which is required to meet insurance solvency capital  
and security requirements and which as a result is not readily available for the general purposes of the group
cash and cash equivalents are held on the consolidated statement of financial position at amortised cost fair value approximates to  
carrying value 160 astrazeneca annual report and form 20f information 2014
17 interestbearing loans and borrowings
repayment
dates
2014
m 
2013
m
2012
m
current liabilities
bank overdrafts on demand 196 222 105
finance leases 48 30 22
54 callable bond us dollars 2014 – 766 –
5125 noncallable bond euros 2015 912 – –
other loans commercial paper within one year 1290 770 774
total 2446 1788 901
noncurrent liabilities
finance leases 60 72 62
54 callable bond us dollars 2014 – – 805
5125 noncallable bond euros 2015 – 1035 990
59 callable bond us dollars 2017 1825 1854 1895
195 callable bond us dollars 2019 996 996 995
0875 noncallable bond euros 2021 902 – –
7 guaranteed debentures us dollars 2023 370 356 399
575 noncallable bond pounds sterling 2031 540 573 561
645 callable bond us dollars 2037 2718 2717 2717
4 callable bond us dollars 2042 986 985 985
total 8397 8588 9409
all loans and borrowings above are unsecured except for finance leases which are secured against the information technology assets to 
which they relate see note 7 
set out below is a comparison by category of carrying values and fair values of all the group’s interestbearing loans and borrowings at 
31 december 2014 31 december 2013 and 31 december 2012
instruments in a
fair value hedge
relationship
1
m
instruments
designated
at fair value
2
m
amortised
cost
3
m
total
carrying
value
m
fair
value
m
2012
overdrafts – – 105 105 105
finance leases due within one year – – 22 22 22
finance leases due after more than one year – – 62 62 62
loans due within one year – – 774 774 774
loans due after more than one year 900 1204 7243 9347 10897
total at 31 december 2012 900 1204 8206 10310 11860
2013
overdrafts – – 222 222 222
finance leases due within one year – – 30 30 30
finance leases due after more than one year – – 72 72 72
loans due within one year – 766 770 1536 1536
loans due after more than one year 856 356 7304 8516 9296
total at 31 december 2013 856 1122 8398 10376 11156
2014
overdrafts – – 196 196 196
finance leases due within one year – – 48 48 48
finance leases due after more than one year – – 60 60 60
loans due within one year – – 2202 2202 2202
loans due after more than one year 828 370 7139 8337 9662
total at 31 december 2014 828 370 9645 10843 12168
1
 instruments designated as hedged items in fair value hedge relationships with respect to interest rate risk include a designated portion of the us dollar 59 callable bond repayable in 2017
2
 instruments designated at fair value through profit or loss include the us dollar 7 guaranteed debentures repayable in 2023
3
 included within borrowings held at amortised cost are amounts designated as hedges of net investments in foreign operations of 1453m 2013 1608m 2012 1551m held at amortised cost 
the fair value of these borrowings was 1641m at 31 december 2014 2013 1769m 2012 1808m
the fair value of fixedrate publicly traded debt is based on year end 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 this falls within the level 1 valuation method as defined in note 11 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 fair values as disclosed in the table above are all determined using the level 1 
valuation method as defined in note 11 with the exception of overdrafts and finance leases where fair value approximates to carrying values
financial statements  notes to the group financial statements 161 astrazeneca annual report and form 20f information 2014
financial statements
17 interestbearing loans and borrowings continued
a loss of 1m was made during the year on the fair value of bonds designated at fair value through profit or loss due to increased credit risk  
a gain of 38m has been made on these bonds since designation due to increased credit risk changes in credit risk had no material effect on 
any other financial assets and liabilities recognised at fair value in the group 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 288m
the interest rates used to discount future cash flows for fair value adjustments where applicable are based on market swap curves at the 
reporting date and were as follows
2014 2013 2012
loans and borrowings 12 to 23 03 to 32 06 to 20
18 trade and other payables
2014
m
2013
m
2012
m
current liabilities
trade payables 3492 2499 2449
value added and payroll taxes and social security 201 207 231
rebates and chargebacks 3530 2853 2486
accruals 3231 3606 3200
other payables 1432 1197 855
total 11886 10362 9221
noncurrent liabilities
accruals 219 126 710
other payables 7772 2226 291
total 7991 2352 1001
with the exception of contingent consideration payables of 6899m 2013 514m 2012 nil held within other payables that arose on 
business combinations see note 24 and which is held at fair value within level 3 of the fair value hierarchy as defined in note 11 all other 
financial liabilities are held on the consolidated statement of financial position at amortised cost with carrying value being a reasonable 
approximation of fair value movements on level 3 financial liabilities are detailed below
2014
m
2013
m
2012
m
at 1 january 514 – –
additions arising on business combinations note 24 6138 532 –
settlements 657 – –
revaluations 512 18 –
discount unwind 391 – –
foreign exchange 1 – –
at 31 december 6899 514 –
as detailed in note 24 contingent consideration arising from business combination is fair valued using decision tree analysis with key inputs 
including the probability of success consideration of potential delays and the expected levels of future revenues 
revaluations of contingent consideration include
  in 2013 a reduction of 18m based on the group’s revised view of the likelihood of triggering certain approval milestones arising on the 
acquisition of omthera pharmaceuticals as detailed in note 24
  an increase of 529m in 2014 based on revised milestone probabilities and revenue and royalty forecasts following the successful 
integration of bms’s share of our previous global diabetes alliance following the acquisition in february 2014 as detailed in note 24
  an increase of 12m in 2014 relating to an approval milestone payable on our almirall franchise business combination as detailed in  
note 24 following approval developments since the acquisition date
  a reduction of 29m in 2014 based on a revision to our assessment of the likelihood of triggering certain approval milestones arising  
on the acquisition of omthera pharmaceuticals as detailed in note 24
further details of the potential future payments on our business combinations including details of the possible ranges of payments are 
included in note 24 management has identified that reasonably possible changes in certain key assumptions including the likelihood of 
achieving successful trial results obtaining regulatory approval the projected market share of the therapeutic area and expected pricing  
for launched products may cause the calculated fair value of the above contingent consideration to vary materially in future years 162 astrazeneca annual report and form 20f information 2014
19 provisions for liabilities and charges
severance
m
environmental
m
employee 
benefits
m
legal
m
other 
provisions
m
total
m
at 1 january 2012 664 92 142 540 424 1862
charge for year 873 22 19 90 92 1096
cash paid 853 27 20 513 63 1476
reversals 65 – – 18 91 174
exchange and other movements 18 1 7 1 9 36
at 31 december 2012 637 88 148 100 371 1344
charge for year 652 27 20 23 49 771
cash paid 532 28 19 78 24 681
reversals 20 – – 5 78 103
exchange and other movements 34 – 3 19 2 58
at 31 december 2013 771 87 152 59 320 1389
additions arising on business acquisitions 39 – – – – 39
charge for year 254 15 8 91 66 434
cash paid 472 17 16 71 57 633
reversals 21 – – 4 39 64
exchange and other movements 45 1 19 1 30 58
at 31 december 2014 526 84 163 74 260 1107
2014
m
2013
m
2012
m
due within one year 623 823 916
due after more than one year 484 566 428
total 1107 1389 1344
astrazeneca is undergoing a global restructuring initiative which involves rationalisation of the global supply chain the sales and  
marketing organisation it and business support infrastructure and rd employee costs in connection with the initiatives are recognised  
in severance provisions
details of the environmental and legal provisions are provided in note 27
employee benefit provisions include the deferred bonus plan further details are included in note 26
other provisions comprise amounts relating to specific contractual or constructive obligations and disputes
no provision has been released or applied for any purpose other than that for which it was established
20 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 sweden and germany 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 during 2010 
following consultation with its uk employees’ representatives astrazeneca introduced a freeze on pensionable pay at 30 june 2010 levels  
for defined benefit members of the uk pension fund
the major defined benefit plans are funded through 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
financial statements  notes to the group financial statements 163 astrazeneca annual report and form 20f information 2014
financial statements
20 postretirement benefits continued
financing principles
97 of the group’s defined benefit obligations at 31 december 2014 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 shortterm 
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 lower 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 summarised below 
and resulting discussions with the pension fund trustee 
role of trustees uk
the uk pension fund is managed by a corporate trustee which is legally separate from the company the trustee directors are composed  
of representatives appointed by both the employer and employees and include an independent professional trustee director the trustee 
directors are required by law to act in the interest of all relevant beneficiaries and are responsible in particular for the asset investment policy 
plus the day to day administration of the benefits they are also responsible for jointly agreeing with the employer the level of contributions  
due to the uk pension fund see below
funding requirements uk
uk legislation requires that pension schemes are funded prudently ie to a level in excess of the current expected cost of providing benefits  
on a triennial basis the trustee and the company must agree the contributions required if any to ensure the fund is fully funded over time  
on a suitable prudent measure the last funding valuation of the astrazeneca pension fund was carried out by a qualified actuary as at  
31 march 2013
in addition astrazeneca will make contributions to a separate account which will be held outside the uk pension fund the assets held  
in this account will be payable to the astrazeneca pension fund in agreed circumstances for example in the event of astrazeneca and the 
pension fund trustee agreeing on a change to the current longterm investment strategy at 31 december 2014 £501m 775m of assets held 
in this separate account are included within other investments see note 11 the structure of this separate account has changed during the 
year from a tripartite escrow arrangement between astrazeneca the pension fund trustee and jpmorgan to a custody account held by 
astrazeneca with hsbc there is a charge in favour of the pension fund trustee over the assets held in this custody account
under the current funding plan a lump sum contribution of £196m 305m was made towards the deficit in january 2015 this contribution 
was made by transferring assets from the custody account described above the company and the uk pension fund are currently exploring 
revised funding plans and extended target dates for full funding
under the agreed funding principles used to set the statutory funding target the key assumptions as at 31 march 2013 were as follows 
longterm uk price inflation set at 355 per annum salary increases at 0 per annum as a result of pensionable pay levels being frozen  
in 2010 pension increases at 32 per annum and investment returns at 486 per annum the resulting valuation of the fund’s liabilities  
on that basis were £4887m 7603m compared to a market value of assets at 31 march 2013 of £4394m 6836m
under the governing documentation of the uk pension fund any future surplus in the fund would be returnable to astrazeneca by refund 
assuming gradual settlement of the liabilities over the lifetime of the fund as such there are no adjustments required in respect of ifric 14  
‘ias 19 – the limit on a defined benefit asset minimum funding requirements and their interaction’
regulation uk
the uk pensions market is regulated by the pensions regulator whose statutory objectives and regulatory powers are described on its 
website wwwthepensionsregulatorgovuk 164 astrazeneca annual report and form 20f information 2014
20 postretirement benefits continued
rest of group
the ias 19 positions as at 31 december 2014 are shown below for each of the other countries with significant defined benefit plans these 
plans account for 92 of the group’s defined benefit obligations outside the uk the us and sweden pension funds are managed by fiduciary 
bodies with responsibility for the investment policies of those funds 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 2014 when plan obligations were 1990m and plan assets 
were 1725m this includes obligations in respect of the nonqualified plan which is largely unfunded
  the swedish defined benefits programme was actuarially revalued at 31 december 2014 when plan obligations were estimated to amount 
to 1889m and plan assets were 1178m
  the german defined benefits programme was actuarially revalued at 31 december 2014 in accordance with practice in germany the plan 
has a low level of funding plan obligations amounted to 413m and plan assets were 21m 
on current bases it is expected that contributions excluding those in respect of past service deficit contributions during the year ending  
31 december 2015 to the four main countries will be 435m
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 2014 some 3616 retired employees and covered dependants currently benefit 
from these provisions and some 9680 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 2014 was 20m 2013 16m 2012 16m plan assets were 306m 
and plan obligations were 402m at 31 december 2014 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 2014 the assumptions used by the actuaries are chosen from a range of possible actuarial assumptions which due to the 
longterm nature of the schemes may not necessarily be borne out in practice these assumptions were as follows
2014 2013
uk rest of group uk rest of group
inflation assumption 31 20 35 22
rate of increase in salaries –
1
32 –
1
34
rate of increase in pensions in payment 30 08 33 11
discount rate 35 30 45 43
1
 pensionable pay frozen at 30 june 2010 levels following uk fund changes
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 2014 and members expected to retire in 2034 
2013 2013 and 2033 respectively
life expectancy assumption for a male member retiring at age 65
country 2014 2034 2013 2033
uk 237 253 236 253
us 231 247 202 216
sweden 205 224 205 224
germany 187 215 187 214
financial statements  notes to the group financial statements 165 astrazeneca annual report and form 20f information 2014
financial statements
20 postretirement benefits continued
risks associated with the company’s defined benefit pensions
the uk defined benefit plan accounts for 66 of the group’s defined benefit obligations and exposes the company to a number of risks the 
most significant of which are
risk description mitigation
volatile asset 
returns 
the defined benefit obligation dbo is calculated using a 
discount rate set with reference to corporate bond yields 
asset returns that differ from the discount rate will create 
an element of volatility in the solvency ratio the uk 
pension fund holds a significant proportion around 35 
of its assets in growth assets such as equities which 
though expected to outperform corporate bonds in the 
long term create volatility and risk in the short term  
the allocation to growth assets is monitored to ensure  
it remains appropriate given the uk pension fund’s 
longterm objectives
the company and trustee have put in place an equity  
option hedging strategy for the uk pension fund to reduce the 
volatility of equity investment returns the hedging strategy 
protects against falls in equity markets of between 94 and 
80 by foregoing upside above 105 returns on 75 of  
the portfolio
the company and trustee have also hedged the uk  
pension fund equity investments against any changes  
to the us dollar the euro and the japanese yen for assets 
denominated in these currencies currently around 35 of 
the fund’s equity mandate is hedged against the us dollar 
8 against the euro and 4 against the japanese yen
changes in 
bond yields 
a decrease in corporate bond yields will increase the 
value placed on the dbo for accounting purposes 
although this will be partially offset by an increase  
in the value of the uk pension fund’s bond holdings
the uk pension fund also holds a substantial proportion of its 
assets 60 as corporate bonds which provide a significant 
hedge against falling bond yields falling yields which increase 
the dbo will also increase the value of the bond assets this 
interest rate hedge is further extended by the use of interest 
rate swaps so that overall the uk pension fund liabilities are 
around 40 hedged against falling interest rates on an 
economic value basis note that there are some differences in 
the credit quality of bonds held by the uk pension fund and 
the bonds analysed to decide the dbo discount rate such 
that there remains some risk should yields on different quality 
bondswap assets diverge
inflation risk a significant proportion of the dbo is indexed in line with 
price inflation specifically inflation in the uk retail price 
index and higher inflation will lead to higher liabilities 
although in most cases this is capped at an annual 
increase of 5
the uk pension fund holds some inflationlinked assets  
which provide a hedge against higherthanexpected inflation 
increases on the dbo this is augmented by inflation swaps 
such that overall the uk pension fund assets hedge around 
50 of the liability exposure to changes in forward inflation
life expectancy the majority of the uk pension fund’s obligations are  
to provide benefits for the life of the member so increases  
in life expectancy will result in an increase in the liabilities 
the uk pension fund entered into a longevity swap during 
2013 which provides hedging against the longevity risk of 
increasing life expectancy over the next 79 years for around 
10000 of the pension fund’s current pensioners and covers 
375bn of the pension fund’s liabilities a one year increase 
in life expectancy will result in 269m increase in pension  
fund assets
other risks
there are a number of other risks of running the uk pension fund including operational risks such as paying out the wrong benefits and 
legislative risks such as the government increasing the burden on pension through new legislation 166 astrazeneca annual report and form 20f information 2014
20 postretirement benefits continued
postretirement scheme deficit
the assets and obligations of the defined benefit schemes operated by the group at 31 december 2014 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
2014 2013
uk
m
rest of group
m
total
m
uk
m
rest of group
m
total
m
scheme assets
equity global exc emerging markets 1700 1005 2705 1520 959 2479
equity emerging markets 320 21 341 401 18 419
equity emerging markets no quoted market price – – – 22 – 22
government bonds global exc emerging markets 1373 255 1628 1134 330 1464
government bonds emerging markets 74 63 137 3 – 3
investment grade corporate bonds aaabbb global exc 
emerging markets 3112 1563 4675 2888 1537 4425
investment grade corporate bonds aaabbb emerging markets 106 9 115 272 12 284
other corporate bonds global exc emerging markets 33 78 111 23 35 58
other corporate bonds emerging markets – – – – 67 67
other corporate bonds emerging markets no quoted market price – – – 92 – 92
derivatives interest rate contracts 94 30 64 175 7 168
derivatives inflation rate contracts 63 – 63 68 – 68
derivatives foreign exchange contracts 14 26 40 85 1 86
derivatives other 16 – 16 59 – 59
derivatives longevity swap – – – – – –
investment funds private equity funds no quoted market price – 38 38 – 47 47
investment funds hedge funds 335 111 446 305 95 400
investment funds hedge funds no quoted market price 1 – 1 18 – 18
cash and cash equivalents 302 76 378 3 144 147
others 110 12 122 71 10 81
total fair value of scheme assets
1
7311 3235 10546 7021 3248 10269
scheme obligations
present value of scheme obligations in respect of
active membership 1168 1763 2931 998 1645 2643
deferred membership 2474 1125 3599 2290 886 3176
pensioners 5200 1767 6967 5115 1596 6711
total value of scheme obligations 8842 4655 13497 8403 4127 12530
deficit in the scheme as recognised in the statement of 
financial position 1531 1420 2951 1382 879 2261
1
 included in scheme assets is nil 2013 nil of the company’s own assets
fair value of scheme assets
2014 2013
uk
m
rest of group
m
total
m
uk
m
rest of group
m
total
m
at beginning of year 7021 3248 10269 6850 3143 9993
interest income on scheme assets 307 133 440 289 114 403
expenses 5 4 9 4 1 5
actuarial lossesgains 670 274 944 119 62 57
exchange adjustments 426 291 717 131 3 128
employer contributions 88 96 184 177 192 369
participant contributions 6 – 6 6 – 6
benefits paid 350 221 571 309 259 568
scheme assets’ fair value at end of year 7311 3235 10546 7021 3248 10269
the actual return on the plan assets was a gain of 1384m 2013 gain of 346m
financial statements  notes to the group financial statements 167 astrazeneca annual report and form 20f information 2014
financial statements
20 postretirement benefits continued
movement in postretirement scheme obligations
2014 2013
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 8403 4127 12530 7740 4524 12264
current service cost 33 103 136 32 104 136
past service cost 63 22 85 42 26 68
participant contributions 6 – 6 6 – 6
benefits paid 350 221 571 309 259 568
interest expense on postretirement scheme obligations 369 163 532 326 156 482
actuarial lossesgains 841 869 1710 373 438 65
obligations arising on acquisitions 4 50 54 – – –
exchange adjustments 527 458 985 193 14 207
present value of obligations in scheme at end of year 8842 4655 13497 8403 4127 12530
the obligations arise from the following plans
2014 2013
uk
m
rest of group
m
total
m
uk
m
rest of group
m
total
m
funded – pension schemes 8815 3694 12509 8376 3302 11678
funded – postretirement healthcare – 360 360 – 293 293
unfunded – pension schemes – 586 586 – 521 521
unfunded – postretirement healthcare 27 15 42 27 11 38
total 8842 4655 13497 8403 4127 12530
the weighted average duration of the postretirement scheme obligations in the uk is 17 years and 15 years in the rest of group
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 2014 are set out below
2014 2013
uk
m
rest of group
m
total
m
uk
m
rest of group
m
total
m
operating profit
current service cost 33 103 136 32 104 136
past service cost 63 22 85 42 26 68
expenses 5 4 9 4 1 5
total charge to operating profit 101 129 230 78 131 209
finance expense
interest income on scheme assets 307 133 440 289 114 403
interest expense on postretirement scheme obligations 369 163 532 326 156 482
net interest on postemployment defined benefit plan liabilities 62 30 92 37 42 79
charge before taxation 163 159 322 115 173 288
other comprehensive income
difference between the actual return and the expected return on 
the postretirement scheme assets 670 274 944 119 62 57
experience losses arising on the postretirement scheme obligations 8 13 21 11 31 20
changes in financial assumptions underlying the present value 
of the postretirement scheme obligations 848 725 1573 493 407 86
changes in demographic assumptions 15 131 116 131 – 131
remeasurement of the defined benefit liability 171 595 766 492 500 8
included in total assets and obligations for the uk is 473m 2013 480m in respect of members’ defined contribution sections of the 
scheme group costs in respect of defined contribution schemes during the year were 238m 2013 241m past service cost relates 
predominantly to enhanced pensions on early retirement in the uk and sweden 168 astrazeneca annual report and form 20f information 2014
20 postretirement benefits continued
rate sensitivities
the following table shows the us dollar effect of a change in the significant actuarial assumptions used to determine the retirement benefits 
obligations in our four main defined benefit pension obligation countries
2014 2013
05 05 05 05
discount rate
uk m 622 676 612 677
us m 119 125 97 105
sweden m 201 232 174 190
germany m 39 45 32 37
total m 981 1078 915 1009
2014 2013
05 05 05 05
inflation rate
1
uk m 457 520 457 434
us m 19 19 18 17
sweden m 229 200 183 168
germany m 25 23 22 21
total m 730 762 680 640
2014 2013
05 05 05 05
rate of increase in salaries
uk m – – – –
us m 15 15 14 13
sweden m 82 72 72 69
germany m 1 1 2 2
total m 98 88 88 84
2014 2013
1 year 1 year 1 year 1 year
mortality rate
uk m 318
2
324
3
271 262
us m 25 26 23 23
sweden m 105 105 100 95
germany m 15 15 13 12
total m 463 470 407 392
1
 rate of increase in pensions in payment follows inflation
2
 of the 318m increase 269m is covered by the longevity swap
3
 of the 324m decrease 280m is covered by the longevity swap
the sensitivity to the financial assumptions shown above has been estimated taking into account the approximate duration of the liabilities and 
the overall profile of the plan membership the sensitivity to the life expectancy assumption has been estimated based on the distribution of the plan 
cash flows
financial statements  notes to the group financial statements 169 astrazeneca annual report and form 20f information 2014
financial statements
21 reserves
retained earnings
the cumulative amount of goodwill written off directly to reserves resulting from acquisitions net of disposals amounted to 639m  
2013 679m 2012 685m using year end rates of exchange at 31 december 2014 168388 shares at a cost of 10m have been 
deducted from retained earnings 2013 99341 shares at a cost of 2m 2012 55555 shares at a cost of 4m
there are no significant statutory or contractual restrictions on the distribution of current profits of subsidiaries 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
2014
m
2013
m
2012
m
cumulative translation differences included within retained earnings
balance at beginning of year 1782 1901 1760
foreign exchange arising on consolidation 823 166 106
exchange adjustments on goodwill recorded against other reserves 40 6 5
foreign exchange arising on designating borrowings in net investment hedges 529 58 46
fair value movement on derivatives designated in net investment hedges 100 111 76
net exchange movement in retained earnings 1292 119 141
balance at end of year 490 1782 1901
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 
22 share capital of the company
allotted calledup and fully paid
2014
m
2013
m
2012
m
issued ordinary shares 025 each 316 315 312
redeemable preference shares £1 each – £50000 – – –
at 31 december 316 315 312
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
2014 2013 2012
at 1 january 1257170087 1246779548 1292355052
issues of shares 5973251 10390539 12241784
repurchase of shares – – 57817288
at 31 december 1263143338 1257170087 1246779548
share repurchases
no ordinary shares were repurchased by the company in 2014 2013 nil 2012 57 8m ordinary shares at an average price of 2879 pence per 
share repurchased shares were subsequently cancelled
share option schemes
a total of 60m ordinary shares were issued during the year in respect of share option schemes 2013 104m ordinary shares 2012 122m 
ordinary shares details of directors’ interests in shares are shown in the directors’ remuneration report from page 100
shares held by subsidiaries
no shares in the company were held by subsidiaries in any year 
23 dividends to shareholders
2014
per share
2013
per share
2012
per share
2014
m
2013
m
2012
m
final 190 190 195 2395 2372 2495
interim 090 090 090 1137 1127 1124
total 280 280 285 3532 3499 3619
the second interim dividend to be confirmed as final is 190 per ordinary share and 2400m in total this will be payable on 23 march 2015
on payment of the dividends exchange losses of 3m 2013 gains of 1m 2012 gains of 3m arose these exchange losses are included  
in note 3 170 astrazeneca annual report and form 20f information 2014
24 acquisitions of business operations
2014 acquisitions
bms’s share of global diabetes alliance assets
on 1 february 2014 astrazeneca completed the acquisition of bristolmyers squibb’s bms interests in the companies’ diabetes alliance  
the acquisition provides astrazeneca with 100 ownership of the intellectual property and global rights for the development manufacture and 
commercialisation of the diabetes business which includes onglyza saxagliptin kombiglyze xr saxagliptin and metformin hcl extended 
release komboglyze saxagliptin and metformin hcl farxiga dapagliflozin marketed as forxiga outside the us byetta exenatide 
bydureon exenatide extended release for injectable suspension myalept metreleptin and symlin pramlintide acetate 
the transaction consolidates worldwide ownership of the diabetes business within astrazeneca leveraging its primary and specialty care 
capabilities and its geographical reach especially in emerging markets the transaction included the acquisition of 100 of the share  
capital of amylin pharmaceuticals llc and the asset purchase of the additional intellectual property and global rights not already owned  
by astrazeneca for the development manufacture and commercialisation of onglyza kombiglyze xr komboglyze and farxiga including 
associated bms employees this combination of intangible product rights and manufacturing assets with an established workforce and their 
associated operating processes principally those related to the global manufacturing and selling and marketing operations requires that the 
acquisition is accounted for as a business combination in accordance with ifrs 3 ‘business combinations’ 
upfront consideration for the acquisition of 27bn was paid on 1 february 2014 with further payments of up to 14bn being payable for  
future regulatory launch and salesrelated milestones astrazeneca has also agreed to pay various salesrelated royalty payments up until 2025 
the amount of royalties payable under the agreement is inherently uncertain and difficult to predict given the direct link to future sales and  
the range of outcomes cannot be reliably estimated the maximum amount payable in each year is with reference to net sales astrazeneca 
also agreed to make payments up to 225m when certain additional assets are transferred contingent consideration has been fair valued  
using decision tree analysis with key inputs including the probability of success consideration of potential delays and the expected levels of  
future revenues in accordance with ifrs 3 the fair value of contingent consideration including future royalties is recognised immediately  
as a liability 
the acquiring entity within the group was a swedish krona functional currency subsidiary foreign currency risk arises from the retranslation  
of the us dollar denominated contingent consideration to manage this foreign currency risk the contingent consideration liability has been 
designated as the hedge instrument in a net investment hedge of the group’s underlying us dollar net investments exchange differences  
on the retranslation of the contingent consideration liability are recognised in other comprehensive income to the extent that the hedge is 
effective any ineffectiveness is taken to profit
in addition to the acquired interests astrazeneca has entered into certain agreements with bms to maintain the manufacturing and supply 
chain of the full portfolio of diabetes products bms will also continue to deliver specified clinical trials in line with the ongoing clinical trial plan 
with an agreed number of rd and manufacturing employees dedicated to diabetes remaining with bms to progress the diabetes portfolio 
and support the transition for these areas these arrangements will continue to be carried out over future periods and future payments by 
astrazeneca to bms in relation to these arrangements will be expensed as incurred no amounts have been recognised in the initial acquisition 
accounting in relation to these arrangements but have been separated at fair value from the business combination accounting in accordance 
with ifrs 3 
the terms of the agreement partially reflect settlement of the launch and salesrelated milestones under the preexisting onglyza and farxiga 
collaboration agreements which have been terminated in relation to the acquisition the expected value of those preexisting milestones is 
03bn and has been recognised as a separate component of consideration and excluded from the business combination accounting in 
accordance with ifrs 3 subsequently these separate intangible assets have been recognised
goodwill of 1530m arising on the transaction is underpinned by a number of elements which individually cannot be quantified most 
significant among these are the synergies astrazeneca expect to be able to generate through more efficient manufacturing processes and the 
incremental value accessible through strategic and operational independence upon taking full control of the alliance goodwill of 15bn is 
expected to be deductible for tax purposes
the fair value of receivables acquired as part of the acquisition approximates the gross contractual amounts receivable there are no 
significant amounts which are not expected to be collected 
the results from the additional acquired interests in the diabetes alliance have been consolidated into the company’s results from 1 february 2014 
which have added revenue of 895m in the period to 31 december 2014 due to the highly integrated nature of the diabetes alliance and the 
fact that it is not operated through a separate legal entity the incremental direct costs associated with the additional acquired interest are not 
separately identifiable and it is impracticable therefore to disclose the profit or loss recognised in the period since acquisition
if the acquisition had taken effect at the beginning of the reporting period in which the acquisition occurred 1 january 2014 on a pro forma 
basis the revenue of the combined group for 2014 would have been 26174m as detailed above it is impracticable to disclose a pro forma 
profit after tax this pro forma information does not purport to represent the results of the combined group that actually would have occurred 
had the acquisition taken place on 1 january 2014 and should not be taken to be representative of future results 
financial statements  notes to the group financial statements 171 astrazeneca annual report and form 20f information 2014
financial statements
24 acquisitions of business operations continued
almirall
on 31 october 2014 the group completed the agreement with almirall to transfer the rights to almirall’s respiratory franchise to astrazeneca
the transaction provides astrazeneca with 100 of the rights for the development and commercialisation of almirall’s existing proprietary 
respiratory business including rights to revenues from almirall’s existing partnerships as well as its pipeline of investigational novel therapies 
the franchise includes eklira aclidinium duaklir genuair the combination of aclidinium with formoterol which had been filed for registration  
in the eu and is being developed in the us eu approval received in november 2014 las100977 abediterol a once daily longacting 
beta 2agonist laba in phase ii an m3 antagonist beta 2agonist maba platform in preclinical development las191351 las194871 and 
phase i las190792 and multiple preclinical programmes almirall sofotec an almirall subsidiary focused on the development of innovative 
proprietary devices has also transferred to astrazeneca in addition almirall employees dedicated to the respiratory business including 
almirall sofotec employees have transferred to astrazeneca
upfront consideration for the acquisition of 878m was paid in november with further payments of up to 122bn being payable for future 
development launch and salesrelated milestones astrazeneca has also agreed to make various salesrelated payments the amount of 
royalties payable under the agreement is inherently uncertain and difficult to predict given the direct link to future sales and the range of 
outcomes cannot be reliably estimated the maximum amount payable in each year is with reference to net sales contingent consideration has 
been fair valued using decision tree analysis with key inputs including the probability of success consideration of potential delays and the 
expected levels of future revenues
the acquiring entity within the group was a pounds sterling functional currency subsidiary foreign currency risk arises from the retranslation 
of the contingent consideration to manage this foreign currency risk the contingent consideration liability has been designated as the hedge 
instrument in a net investment hedge exchange differences on the retranslation of the contingent consideration liability are recognised in 
other comprehensive income to the extent that the hedge is effective any ineffectiveness is taken to profit
almirall’s pipeline of novel respiratory assets and its device capabilities further strengthen astrazeneca’s respiratory portfolio which includes 
symbicort and pulmicort as well as the company’s investigational medicines in development the addition of aclidinium and the combination 
of aclidinium with formoterol both in proprietary genuair device will allow astrazeneca to offer patients a choice between dry powder inhaler 
and metered dose inhaler devices across a range of molecules and combinations
the combination of intangible product rights with an established workforce and their associated operating processes principally those related 
to the selling and marketing operations requires that the transaction is accounted for as a business combination in accordance with ifrs 3 
goodwill of 311m is underpinned by a number of elements which individually cannot be quantified most significant among these is the 
premium attributable to the significant competitive advantage associated with astrazeneca’s complementary portfolio and that attributable to 
a highly skilled workforce goodwill of 03bn is expected to be deductible for tax purposes
almirall’s respiratory franchise results have been consolidated into the company’s results from 31 october 2014 for the period from 
acquisition to 31 december 2014 almirall’s respiratory franchise revenues were 13m due to the highly integrated nature of the respiratory 
franchise and the fact that it is not operated through a separate legal entity the incremental direct costs associated with the acquired interest 
are not separately identifiable and it is impracticable therefore to disclose the profit or loss recognised in the period since acquisition
if the acquisition had taken effect at the beginning of the reporting period in which the acquisition occurred 1 january 2014 on a pro forma basis 
the revenue of the combined group for 2014 would have been 26198m as detailed above it is impracticable to disclose a pro forma profit 
after tax this pro forma information does not purport to represent the results of the combined group that actually would have occurred had 
the acquisition taken place on 1 january 2014 and should not be taken to be representative of future results
definiens
on 25 november 2014 astrazeneca completed the acquisition of definiens group definiens is a privatelyheld german company focused  
on imaging and data analysis technology known as tissue phenomics
™
 which dramatically improves the identification of biomarkers in 
tumour tissue
definiens technology provides detailed cellbycell readouts from target structures on tissue slides and allows the correlation of this 
information with data derived from other sources generating new knowledge and supporting better decisions in research diagnostics  
and therapy
astrazeneca acquired 100 of definiens shares for an upfront consideration of 150m and contingent consideration of up to 150m based 
on reaching three predetermined development milestones contingent consideration has been fair valued using decision tree analysis with key 
inputs including the probability of success and consideration of potential delays
the acquiring entity within the group was a pound sterling functional currency subsidiary foreign currency risk arises from the retranslation  
of the us dollar denominated contingent consideration to manage this foreign currency risk the contingent consideration liability has been 
designated as the hedge instrument in a net investment hedge of the group’s underlying us dollar net investments exchange differences  
on the retranslation of the contingent consideration liability are recognised in other comprehensive income to the extent that the hedge is 
effective any ineffectiveness is taken to profit
definiens’ results have been consolidated into the company’s results from 25 november 2014 for the period from acquisition to 
31 december 2014 definiens’ revenues were immaterial in the context of the group’s revenues and its loss after tax was immaterial 172 astrazeneca annual report and form 20f information 2014
24 acquisitions of business operations continued
if the acquisition had taken effect at the beginning of the reporting period in which the acquisition occurred 1 january 2014 on a pro forma 
basis the revenue of the combined group for 2014 would have been unchanged and the change in profit after tax would have been 
immaterial this pro forma information does not purport to represent the results of the combined group that actually would have occurred  
had the acquisition taken place on 1 january 2014 and should not be taken to be representative of future results
the fair values assigned to the business combinations completed in 2014 are
2014 acquisitions
bms’s share of
global diabetes
alliance assets
m
almirall
m
definiens
m
total
m
noncurrent assets
intangible assets note 9 5746 1400 355 7501
property plant and equipment note 7 478 37 – 515
6224 1437 355 8016
current assets 480 24 – 504
current liabilities 278 2 – 280
noncurrent liabilities 84 11 117 212
total assets acquired 6342 1448 238 8028
goodwill note 8 1530 311 – 1841
fair value of total consideration 7872 1759 238 9869
less fair value of contingent consideration note 18 5169 881 88 6138
total upfront consideration 2703 878 150 3731
less cash and cash equivalents acquired – 2 – 2
net cash outflow 2703 876 150 3729
acquisition costs arising on acquisitions in 2014 were immaterial
2013 acquisitions
pearl therapeutics
on 27 june 2013 astrazeneca completed the acquisition of pearl therapeutics pearl therapeutics is based in redwood city california  
and is focused on the development of inhaled small molecule therapeutics for respiratory disease astrazeneca acquired 100 of pearl 
therapeutics’ shares for an upfront consideration of 569m in addition consideration of up to 450m is payable if specified development  
and regulatory milestones in respect of any triple combination therapies and selected future products that astrazeneca develops using pearl 
therapeutics’ technology platform are achieved salesrelated payments of up to a further 140m are payable if preagreed cumulative sales 
thresholds are exceeded contingent consideration was fair valued using decision tree analysis with key inputs including the probability of 
success and consideration of potential delays
goodwill of 44m was recorded for the acquisition and is underpinned by a number of elements which individually cannot be quantified most 
significant among these is the synergistic benefit generated by acquiring pearl therapeutics’ workforce whose skills and knowhow are critical 
to the best and most efficient completion of the ongoing development programmes
pearl therapeutics’ results have been consolidated into the company’s results from 27 june 2013 for the period from acquisition to  
31 december 2013 pearl therapeutics’ revenues were immaterial in the context of the group’s revenue and its loss after tax was 49m
omthera pharmaceuticals
on 18 july 2013 astrazeneca completed the acquisition of omthera pharmaceuticals inc omthera is a specialty pharmaceutical company 
based in princeton new jersey focused on the development and commercialisation of new therapies for abnormal levels of lipids in the 
blood referred to as dyslipidaemia 
astrazeneca acquired 100 of omthera’s shares for an upfront consideration of 323m with up to 120m in future development and approval 
milestones contingent consideration was fair valued using decision tree analysis with key inputs including the probability of success and 
consideration of potential delays
omthera’s results have been consolidated into the company’s results from 18 july 2013 for the period from acquisition to 31 december 
2013 omthera’s revenues were immaterial in the context of the group’s revenue and its loss after tax was 10m 
amplimmune
on 4 october 2013 astrazeneca completed the acquisition of amplimmune a privatelyheld maryland usbased biologics company 
focused on developing novel therapeutics in cancer immunology under the terms of the agreement astrazeneca acquired 100 of 
amplimmune’s shares for an initial consideration of 225m and deferred consideration of up to 275m based on reaching predetermined 
development milestones contingent consideration was fair valued using decision tree analysis with key inputs including the probability of success 
and consideration of potential delays
the acquisition bolsters astrazeneca’s oncology pipeline by obtaining multiple earlystage assets for its immunemediated cancer therapy 
imtc portfolio including amp514 an antiprogrammed cell death 1 pd1 monoclonal antibody mab other amplimmune assets include 
multiple preclinical molecules targeting the b7 pathways 
financial statements  notes to the group financial statements 173 astrazeneca annual report and form 20f information 2014
financial statements
24 acquisitions of business operations continued
goodwill of 33m arising on the acquisition is underpinned by a number of elements which individually cannot be quantified but include 
amplimmune’s very early programmes of potential interest for oncology immunology and infectious diseases as well as research tools and 
animal models
amplimmune’s results have been consolidated into the company’s results from 4 october 2013 for the period from acquisition to 
31 december 2013 amplimmune’s revenues were immaterial in the context of the group’s revenue and its loss after tax was 5m 
spirogen
on 15 october 2013 astrazeneca completed the acquisition of spirogen a privatelyheld biotech company focused on antibody drug 
conjugate technology for use in oncology astrazeneca acquired 100 of spirogen’s shares for an initial consideration of 200m and deferred 
consideration of up to 240m based on reaching predetermined development milestones existing outlicensing agreements and associated 
revenue streams are excluded from this acquisition contingent consideration was fair valued using decision tree analysis with key inputs 
including the probability of success and consideration of potential delays
astrazeneca has also entered into a collaboration agreement with adc therapeutics to jointly develop two of adc therapeutics’ antibody
drug conjugate programmes in preclinical development astrazeneca has also made an equity investment in adc therapeutics which has an 
existing licensing agreement with spirogen
spirogen’s results have been consolidated into the company’s results from 15 october 2013 for the period from acquisition to 31 december 
2013 spirogen’s revenues were immaterial in the context of the group’s revenue and its loss after tax was immaterial 
the fair values assigned to the business combinations completed in 2013 are
2013 acquisitions
pearl therapeutics
m
omthera
m
amplimmune
m
spirogen
m
total
m
noncurrent assets
intangible assets 985 526 534 371 2416
property plant and equipment – – 7 1 8
deferred tax assets 60 18 14 – 92
1045 544 555 372 2516
current assets 12 67 17 – 96
current liabilities 4 10 8 – 22
noncurrent liabilities
deferred tax liabilities 379 216 219 4 818
total assets acquired 674 385 345 368 1772
goodwill 44 – 33 – 77
fair value of total consideration 718 385 378 368 1849
less fair value of contingent consideration 149 62 153 168 532
total upfront consideration 569 323 225 200 1317
less cash and cash equivalents acquired 4 63 17 – 84
less deferred upfront consideration – – 75 – 75
net cash outflow 565 260 133 200 1158
acquisition costs arising on acquisitions in 2013 were immaterial
if the 2013 acquisitions had taken effect at the beginning of the reporting period in which the acquisitions occurred 1 january 2013 on a pro 
forma basis the revenue of the combined group for 2013 would have been unchanged and the profit after tax would have been 2458m this 
pro forma information has been prepared taking into account any amortisation interest costs and related tax effects but does not purport to 
represent the results of the combined group that actually would have occurred had the acquisition taken place on 1 january 2013 and should 
not be taken to be representative of future results
2012 acquisitions
ardea
on 19 june 2012 astrazeneca completed the acquisition of ardea ardea is a us san diego california based biotechnology company 
focused on the development of small molecule therapeutics for the treatment of serious diseases astrazeneca acquired 100 of ardea’s shares 
for cash consideration of 1268m the acquisition strengthens our research and development capabilities in the respiratory inflammation and 
autoimmunity therapy area
in most business acquisitions there is a part of the cost that is not capable of being attributed in accounting terms to identifiable assets and 
liabilities acquired and is therefore recognised as goodwill in the case of the acquisition of ardea this goodwill is underpinned by a number of 
elements which individually cannot be quantified most significant among these is the premium attributable to a highlyskilled workforce and 
established experience in the field of gout 174 astrazeneca annual report and form 20f information 2014
24 acquisitions of business operations continued
the fair values assigned on acquisition were 
m
noncurrent assets 
intangible assets 1464
other 4
1468
current assets 199
current liabilities 32
noncurrent liabilities
deferred tax liabilities 397
total assets acquired 1238
goodwill 30
consideration 1268
less cash and cash equivalents acquired 81
net cash outflow 1187
acquisition costs arising on the acquisition of 12m were expensed within selling general and administrative costs in 2012
ardea’s results have been consolidated into the group’s results from 20 june 2012 for the period from acquisition to 31 december 2012 
ardea’s revenues were immaterial in the context of the group’s revenue and its loss after tax was 43m if the acquisition had taken effect  
at the beginning of the reporting period in which the acquisition occurred 1 january 2012 on a pro forma basis the revenue of the combined 
group for 2012 would have been unchanged and the profit after tax would have been 6245m this pro forma information has been prepared 
taking into account any amortisation interest costs and related tax effects but does not purport to represent the results of the combined  
group that actually would have occurred had the acquisition taken place on 1 january 2012 and should not be taken to be representative  
of future results
25 financial risk management objectives and policies
the group’s principal financial instruments other than derivatives comprise bank overdrafts finance leases 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 currency options crosscurrency swaps and interest rate swaps 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 22 debt note 17 and cash note 16 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
the group utilises factoring arrangements for selected trade receivables these factoring arrangements qualify for full derecognition of the 
associated trade receivables under ias 39 ‘financial instruments recognition and measurement’
funding and liquidity risk are reviewed regularly by the board and managed in accordance with policies described below
the board’s distribution policy comprises a regular cash dividend and subject to business needs a share repurchase component the board 
regularly reviews its shareholders’ return strategy and in 2012 decided to suspend share repurchases in order to retain strategic flexibility
the group’s net funds position loans and borrowings net of cash and cash equivalents current investments and derivative financial 
instruments has decreased from a net funds position of 39m at the beginning of the year to a net debt position of 3223m at 31 december 2014 
primarily as a result of increased outflows from investing activities including acquisitions
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 is assigned shortterm credit ratings of p1 by moody’s and a1 by standard and poor’s 
the group’s longterm credit rating is a2 stable outlook by moody’s and aa negative outlook by standard and poor’s
financial statements  notes to the group financial statements 175 astrazeneca annual report and form 20f information 2014
financial statements
25 financial risk management objectives and policies continued 
in addition to cash and cash equivalents of 6360m fixed deposits of 20m less overdrafts of 196m at 31 december 2014 the group has 
committed bank facilities of 3bn available to manage liquidity at 31 december 2014 the group has issued 2354m under a euro medium 
term note programme and 6895m 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 of 3bn 
mature in april 2019 and were undrawn at 31 december 2014
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
finance
leases
m
trade
and other
payables
m
total
nonderivative
financial
instruments
m
interest
rate swaps
m
cross
currency
swaps
m
total
derivative
financial
instruments
m
total
m
within one year 881 484 23 9221 10609 85 12 97 10512
in one to two years – 1214 23 1001 2238 67 12 79 2159
in two to three years – 1435 23 – 1458 49 12 61 1397
in three to four years – 393 21 – 414 49 12 61 353
in four to five years – 2143 11 – 2154 48 12 60 2094
in more than five years – 10766 – – 10766 90 96 186 10580
881 16435 101 10222 27639 388 156 544 27095
effect of interest 2 7340 17 – 7359 388 86 474 6885
effect of discounting fair values and 
issue costs – 252 – – 252 313 6 319 67
31 december 2012 879 9347 84 10222 20532 313 76 389 20143
bank
overdrafts
and other
loans
m
bonds
m
finance
leases
m
trade
and other
payables
m
total
nonderivative
financial
instruments
m
interest
rate swaps
m
cross
currency
swaps
m
total
derivative
financial
instruments
m
total
m
within one year 993 1217 34 10370 12614 70 16 86 12528
in one to two years – 1482 33 1044 2559 70 16 86 2473
in two to three years – 393 31 660 1084 51 16 67 1017
in three to four years – 2143 18 285 2446 51 16 67 2379
in four to five years – 290 3 230 523 51 15 66 457
in more than five years – 10497 – 1010 11507 77 229 306 11201
993 16022 119 13599 30733 370 308 678 30055
effect of interest 1 6872 17 – 6890 370 97 467 6423
effect of discounting fair values and 
issue costs – 132 – 885 753 193 24 169 922
31 december 2013 992 9282 102 12714 23090 193 187 380 22710
bank
overdrafts
and other
loans
m
bonds
m
finance
leases
m
trade
and other
payables
m
total
nonderivative
financial
instruments
m
interest
rate swaps
m
cross
currency
swaps
m
total
derivative
financial
instruments
m
total
m
within one year 1488 1490 45 11909 14932 52 16 68 14864
in one to two years – 401 45 1720 2166 52 16 68 2098
in two to three years – 2151 31 936 3118 52 16 68 3050
in three to four years – 298 8 924 1230 16 19 35 1195
in four to five years – 1298 1 1323 2622 16 325 341 2281
in more than five years – 10135 – 7002 17137 62 – 62 17075
1488 15773 130 23814 41205 250 392 642 40563
effect of interest 2 6461 22 – 6485 250 83 333 6152
effect of discounting fair values and 
issue costs – 63 – 3937 4000 161 5 156 4156
31 december 2014 1486 9249 108 19877 30720 161 304 465 30255
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 with the 
exception of 6899m of contingent consideration held within other payables at fair value see note 18 176 astrazeneca annual report and form 20f information 2014
25 financial risk management objectives and policies continued 
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
at 31 december 2014 the group held interest rate swaps with a notional value of 10bn converting the 7 guaranteed debentures payable 
in 2023 to floating rates and partially converting the 59 callable bond maturing in 2017 to floating rates no new interest rate swaps were 
entered into during 2014 2013 or 2012 at 31 december 2014 swaps with a notional value of 075bn were designated in fair value hedge 
relationships and swaps with a notional value of 029bn 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 138
the majority of surplus cash is currently invested in us dollar liquidity funds earning floating rates of interest
the interest rate profile of the group’s interestbearing financial instruments as at 31 december 2014 31 december 2013 and 31 december 2012 
is set out below in the case of current and noncurrent financial liabilities the classification includes the impact of interest rate swaps which 
convert the debt to floating rate
2014 2013 2012
fixed rate
m
floating rate
m
total
m
fixed rate
m
floating rate
m
total
m
fixed rate
m
floating rate
m
total
m
financial liabilities
interestbearing loans and borrowings
current 960 1486 2446 30 1758 1788 22 879 901
noncurrent 7199 1198 8397 7376 1212 8588 7306 2103 9409
total 8159 2684 10843 7406 2970 10376 7328 2982 10310
financial assets
fixed deposits – 20 20 – 15 15 – 46 46
cash and cash equivalents – 6360 6360 – 9217 9217 – 7701 7701
total – 6380 6380 – 9232 9232 – 7747 7747
in addition to the financial assets above there are 7 576m 2013 7 772m 2012 7 924m 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 60 of group external sales in 2014 were denominated in currencies other than the us dollar while a significant proportion of 
manufacturing and research and development costs were denominated in pound 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 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 2014 50 of interestbearing loans and borrowings were denominated in pound sterling and 167 of interest
bearing 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
in 2012 the group entered into a crosscurrency swap to convert 750m of the 195 2019 maturing bond into fixed japanese yen debt during 
2013 the group entered into an additional crosscurrency swap to convert the remaining unhedged 250m of the 195 2019 maturing bond 
into fixed japanese yen debt both these instruments were designated in net investment hedges against the foreign currency risk of the group’s 
japanese yen net assets in 2014 125m of the second japanese yen crosscurrency swap was dedesignated from the net investment hedge 
in order to maintain hedge effectiveness
also in 2013 the group entered into a crosscurrency swap to convert 151m into fixed chinese renminbi debt maturing in 2018 
this instrument was designated in a net investment hedge against the foreign currency risk of the group’s chinese renminbi net assets 
fair value movements on the revaluation of the crosscurrency swaps are recognised in other comprehensive income to the extent that the 
hedge is effective any ineffectiveness would be taken to profit
financial statements  notes to the group financial statements 177 astrazeneca annual report and form 20f information 2014
financial statements
25 financial risk management objectives and policies continued 
foreign currency risk arises where the group has intercompany funding and investments in certain subsidiaries operating in countries with 
exchange controls the most significant risk in this respect is venezuela where the group has approximately 108m equivalent of local 
currency cash on which there have been delays in obtaining approval for remittance outside the country as a result the group is exposed  
to a potential income statement devaluation loss on its total intercompany balances with the subsidiary in venezuela which amounted to 
approximately 139m as at 31 december 2014 
for the period to 31 december 2014 the group used the official exchange rate as published by cencoex the national foreign trade center  
of vef 63 however effective from 31 december 2014 the group used the sicad supplementary foreign currency administration system rate 
of vef 12 for the consolidation of the financial statements of the venezuelan subsidiaries the group believes that the sicad rate represents the 
most appropriate rate for consolidation as it reflects their best expectation of the rate at which profits will be remitted factors such as future 
uncertainty and significant delays experienced in remitting cash at the official rate of 63 vef as well as management actions in dealing with 
the government to settle a portion of the overdue receivables at the sicad rate of 12 vef were taken into account the 12 vef exchange 
rate has been used in stating equivalent us dollar exposures above
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 pound 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
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 2014 
with all other variables held constant based on the composition of our longterm debt portfolio as at 31 december 2014 a 1 increase in 
interest rates would result in an additional 27m 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 2014 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 and each 1 change in interest rates would have approximately the same effect as the 1 detailed in the table below
interest rates exchange rates
31 december 2012 1 1 10 10
increasedecrease in fair value of financial instruments m 853 1005 12 12
impact on profit lossgain m – – 231 231
impact on equity gainloss m – – 243 243
interest rates exchange rates
31 december 2013 1 1 10 10
increasedecrease in fair value of financial instruments m 669 839 12 12
impact on profit lossgain m – – 274 274
impact on equity gainloss m – – 262 262
interest rates exchange rates
31 december 2014 1 1 10 10
increasedecrease in fair value of financial instruments m 844 856 85 85
impact on profit lossgain m – – 247 247
impact on equity gainloss m – – 332 332
there has been no change in the methods and assumptions used in preparing the above sensitivity analysis over the threeyear period 178 astrazeneca annual report and form 20f information 2014
25 financial risk management objectives and policies continued 
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 which are accounted for at fair value through profit or loss
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 
in the us sales to three wholesalers accounted for approximately 75 of us sales 2013 three wholesalers accounted for approximately 77 
2012 three wholesalers accounted for approximately 73
the ageing of trade receivables at the reporting date was 
2014
m
2013
m
2012
m
not past due 4316 5059 5322
past due 090 days 354 330 288
past due 90180 days 75 78 41
past due  180 days 17 47 45
4762 5514 5696
2014
m
2013
m
2012
m
movements in provisions for trade receivables
at 1 january 64 64 66
income statement credit 2 5 –
amounts utilised exchange and other movements 8 5 2
at 31 december 54 64 64
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 us 
dollar aaarated liquidity funds fully collateralised repurchase agreements and shortterm bank deposits
the most significant concentration of financial credit risk at 31 december 2014 was 5475m invested in six aaarated liquidity funds the 
liquidity fund portfolios are managed by the related external third party fund managers to maintain the aaa rating no more than 15 of fund 
value is invested within each individual fund there were no other significant concentrations of financial credit risk at the reporting date
at 31 december 2014 the group had investments of 300m 2013 nil 2012 nil in shortterm repurchase agreements which are fully 
collateralised investments in the event of any default ownership of the collateral would revert to the group and would be readily convertible  
to cash the value of the collateral held at 31 december 2014 was 316m 2013 nil 2012 nil
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 2014 was 457m 
2013 326m 2012 230m
financial statements  notes to the group financial statements 179 astrazeneca annual report and form 20f information 2014
financial statements
26 employee costs and share 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
2014 2013 2012
employees
uk 7200 7200 7900
continental europe 13800 14000 16100
the americas 16800 14600 15300
asia africa  australasia 18100 15800 14200
continuing operations 55900 51600 53500
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 2014 was 57500 2013 51500 2012 51700
the costs incurred during the year in respect of these employees were
2014
m
2013
m
2012
m
salaries 4657 3833 4192
social security costs 664 622 664
pension costs 459 445 525
other employment costs 499 376 362
6279 5276 5743
severance costs of 254m are not included above 2013 653m 2012 846m
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 are paid in cash the company also offers uk employees the opportunity to buy partnership shares ordinary 
shares employees may invest up to £1800 over a 12 month 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 12 month 
period in 2010 the company introduced a matching share element in respect of partnership shares the first award of which was made in 2011 
partnership shares and matching shares are held in the hm revenue  customs hmrcapproved allemployee share plan 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 march 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 performance 
share plan and the astrazeneca global restricted stock plan all operate in respect of relevant astrazeneca employees in sweden
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 88 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 180 astrazeneca annual report and form 20f information 2014
26 employee costs and share plans for employees continued
share plans 
the charge for sharebased payments in respect of share plans is 178m 2013 156m 2012 139m the plans are equity settled
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 2014 under the plan was in march with 
a further smaller grant in february 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 2014 vesting is subject to a combination of measures focused on scientific leadership revenue 
growth and financial performance 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 grant of awards in march 2014 was the final grant under this plan the plan has been replaced by the astrazeneca 2014 
performance share plan further details of this plan can be found in the directors’ remuneration report from page 100
shares
’000
wafv
1 
pence
wafv
1 

shares awarded in march 2012 3283 1403 2241
shares awarded in august 2012 38 1480 2350
shares awarded in june 2013 2867 1649 2573
shares awarded in august 2013 197 1649 2512
shares awarded in november 2013 30 1649 2638
shares awarded in february 2014 37 na 3055
shares awarded in march 2014 2368 1952 3234
1
 weighted average fair value
the astrazeneca 2014 performance share plan
this plan was approved by shareholders in 2014 for a period of 10 years and replaces the astrazeneca performance share plan 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 may 2014 with further 
grants in august september and november awards granted under the plan vest after three years or in the case of executive directors after 
a two year holding period and can be subject to the achievement of performance conditions for awards to all participants in 2014 vesting is 
subject to a combination of measures focused on scientific leadership revenue growth and financial performance 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 further details of this plan can be found 
in the directors’ remuneration report from page 100
shares
‘000
wafv
pence
wafv

shares awarded in may 2014 12 2133 3575
shares awarded in august 2014 141 2156 3579
shares awarded in september 2014 40 2250 na
shares awarded in november 2014 2 na 3662
the astrazeneca investment plan
this plan was introduced in 2010 and approved by shareholders at the 2010 agm the main grant of awards in 2014 under the plan was  
in march with a further smaller grant in september 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 2014 the performance conditions relate to the 
annual dividend paid to shareholders and dividend cover over a four year performance period the awards are then subject to a four year 
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 further details of this plan can be found in the directors’ remuneration report from page 100
shares
’000
wafv
 
pence
wafv
 

shares awarded in march 2012 113 2805 4482
shares awarded in october 2012 69 2894 na
shares awarded in june 2013 157 3297 5145
shares awarded in august 2013 8 3302 na
shares awarded in march 2014 67 3904 6468
shares awarded in september 2014 7 4499 na
financial statements  notes to the group financial statements 181 astrazeneca annual report and form 20f information 2014
financial statements
26 employee costs and share plans for employees continued
the astrazeneca global restricted stock plan
this plan was introduced in 2010 the main grant of awards in 2014 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
shares
’000
wafv
 
pence
wafv
 

shares awarded in march 2012 2916 2805 4482
shares awarded in august 2012 26 2959 4700
shares awarded in march 2013 1417 3254 4942
shares awarded in june 2013 986 3297 5145
shares awarded in august 2013 13 3206 5023
shares awarded in march 2014 2076 3904 6468
shares awarded in august 2014 25 4312 7157
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 nine times in 2014 to make awards to 490 
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
shares
’000
wafv
 
pence
wafv
 

shares awarded in february 2012 10 3067 4820
shares awarded in march 2012 371 2805 4482
shares awarded in july 2012 5 na 4694
shares awarded in august 2012 188 2959 4700
shares awarded in october 2012
1
69 2894 na
shares awarded in february 2013 2 3125 na
shares awarded in march 2013 144 na 4923
shares awarded in june 2013 25 na 5145
shares awarded in august 2013 119 3302 5023
shares awarded in september 2013 85 na 4921
shares awarded in november 2013 739 3297 5276
shares awarded in february 2014 115 4042 6110
shares awarded in march 2014 155 na 6468
shares awarded in may 2014 134 4265 7150
shares awarded in august 2014 72 4312 7157
shares awarded in september 2014 64 4499 7405
shares awarded in november 2014 9 4672 7323
1
 this is an award of restricted shares granted to pascal soriot under an arrangement the details of which are identical to the rules of the astrazeneca restricted share plan
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 grant date fair values of share awards disclosed in this section do not take account of service 
and nonmarket related performance conditions 182 astrazeneca annual report and form 20f information 2014
27 commitments and contingent liabilities
2014
m
2013
m
2012
m
commitments
contracts placed for future capital expenditure on property plant and equipment and software development costs not 
provided for in these accounts 438 481 245
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 6920 660 1110 958 4192
future potential revenue milestone payments 4896 – – 229 4667
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 expensed  
as the associated sale is recognised the table excludes any payments already capitalised in the financial statements for the year ended  
31 december 2014
the future payments we disclose represent contracted payments and as such are not discounted and are not risk adjusted as detailed in 
the risk section from page 203 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
environmental costs and liabilities
the group’s expenditure on environmental protection including both capital and revenue items relates to costs that 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 2012 2013 or 2014
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  
17 sites where zeneca inc is likely to incur future environmental investigation remediation operation and maintenance costs under federal  
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 30 sites where smc is likely to incur us environmental 
consequences astrazeneca has also given indemnities to third parties for a number of sites outside the us these environmental liabilities 
arise from legacy operations that are not currently part of the group’s 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 2014 in the aggregate of 84m 2013 87m 2012 88m mainly relating to the us where we are 
jointly liable or otherwise have costsharing 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
financial statements  notes to the group financial statements astrazeneca annual report and form 20f information 2014 183
financial statements
4 uncertainties in timing of litigation  
and 5 the possible need for further legal 
proceedings to establish the appropriate 
amount of damages if any
while there can be no assurance regarding 
the outcome of any of the legal proceedings 
referred to in this note 27 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 generally 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 the future incur 
judgments or insurance settlements that 
could have a material adverse effect on  
our results in any particular period
ip 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 
product sales which could have a material 
adverse effect on our results the lawsuits 
filed by astrazeneca for patent infringement 
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 
27 commitments and contingent 
liabilities continued
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 we estimate the potential additional 
loss for future environmental investigation 
remediation remedial operation and 
maintenance activity above and beyond our 
provisions to be in aggregate between 
50m and 80m 2013 50m and 90m 
2012 50m and 90m which relates solely 
to the us
legal proceedings
astrazeneca is involved in various legal 
proceedings considered typical to its 
business including actual or threatened 
litigation andor actual or potential 
government investigations relating to 
employment matters product liability 
commercial disputes pricing sales and 
marketing practices infringement of ip  
rights the validity of certain patents and 
competition 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 in this section we also do not 
believe that disclosure of the amount sought 
by plaintiffs if 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 
products typically also involve allegations of 
noninfringement invalidity and unenforceability 
of these patents by the anda filers in the 
event that the group is unsuccessful in these 
actions or the statutory 30month stay 
expires before a ruling is obtained the anda 
filers 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 ip
over the course of the past several years 
including in 2014 a significant number 
of commercial litigation claims in which 
astrazeneca is involved have been resolved 
particularly in the us thereby reducing 
potential contingent liability exposure arising 
from such litigation similarly in part due to 
patent litigation and settlement developments 
greater certainty has been achieved 
regarding possible generic entry dates with 
respect to some of our patented products  
at the same time like other companies in the 
pharmaceutical sector and other industries 
astrazeneca continues to be subject to 
government investigations around the world
patent litigation
byetta exenatide
us patent litigation 
in october 2014 astrazeneca received 
a paragraph iv notice from teva 
pharmaceuticals usa inc teva teva is 
seeking fda approval to market a generic 
version of byetta prior to the expiration of 
certain astrazeneca patents listed in the  
fda orange book with reference to byetta  
in december 2014 astrazeneca commenced 
patent litigation against teva in the us  
district court for the district of delaware 
astrazeneca is asserting several patents  
in january 2015 teva filed a complaint in  
the same court for declaratory judgment  
that its proposed generic version of byetta 
would not infringe us patent nos 7297761 
and 7741269 
crestor rosuvastatin calcium 
us patent litigation
astrazeneca is defending three patent 
infringement lawsuits in the us district court 
for the district of south carolina which 
among other things claim that astrazeneca’s 
crestor sales induce infringement of the 
plaintiffs’ patents the first was filed in april 
2011 by plaintiff palmetto pharmaceuticals 
llc and the other two which have been 
consolidated together were filed in july and 
december 2013 by coplaintiffs medical 
university of south carolina foundation for 
research development and charleston 
medical therapeutics inc
patent proceedings outside the us 
astrazeneca is engaged in proceedings in 
australia brazil japan malaysia mexico 
netherlands portugal singapore south 
africa and taiwan regarding patent andor 
regulatory exclusivity for crestor astrazeneca annual report and form 20f information 2014 184
commenced separate patent infringement 
litigation against actavis laboratories fl inc 
and zydus pharmaceuticals usa inc  
in the us district court for the district of  
new jersey 
in october 2014 and subsequently 
astrazeneca received paragraph iv notice 
letters from companies seeking to market 
generic versions of nexium 24hr otc 
20mg delayedrelease capsules in response 
to the notice letters and corresponding anda 
filings astrazeneca commenced separate 
patent infringement litigation against actavis 
laboratories fl inc andrx labs llc and 
perrigo company plc in the us district 
court for the district of new jersey 
patent proceedings outside the us 
in the uk in 2010 astrazeneca initiated 
patent infringement proceedings against 
consilient health limited and krka dd  
novo mesto consilientkrka consilientkrka 
had previously agreed not to launch their 
esomeprazole magnesium product pending 
the outcome of patent infringement 
proceedings this injunction was discharged  
in july 2011 in march 2014 in proceedings 
initiated by consilientkrka the high court 
awarded consilientkrka £27m in damages 
astrazeneca has appealed a provision has 
been taken
in canada in october 2012 the federal 
court prohibited pharmascience inc pms 
from receiving a marketing authorisation for 
its esomeprazole magnesium product until 
may 2018 pms appealed on 22 may 2014 
the federal court of appeal reversed the 
decision of the lower court pms has now 
received its marketing authorisation
in canada patent infringement proceedings 
against apotex inc continue in july 2014 the 
federal court found canadian patent no 
2139653 invalid astrazeneca has appealed 
in canada in july 2014 astrazeneca 
received a notice of allegation from teva 
canada limited teva alleging either that 
teva’s esomeprazole magnesium product 
would not infringe the patents listed on the 
canadian patent register in relation to 
nexium or alternatively that certain of the 
patents were invalid astrazeneca has 
commenced an application in response
onglyza saxagliptin and kombiglyze xr 
saxagliptin and metformin 
us patent litigation 
beginning april 2014 a number of generics 
companies sent notices that they had 
submitted andas for saxagliptin 
hydrochloride 25mg and 5mg tablets 
containing a paragraph iv certification 
alleging that us patent nos 7951400 and 
re44186 listed in the fda orange book  
with reference to onglyza are invalid 
unenforceable andor will not be infringed  
by the products as described in the andas 
several of these companies also sent notices 
that they had submitted andas for 
27 commitments and contingent 
liabilities continued
faslodex prior to the expiration of the 
same four patents and astrazeneca filed 
a patent infringement lawsuit against 
glenmark in the us district court in new 
jersey the lawsuits remain pending 
patent proceedings outside the us
in 2008 the opposition division of the 
european patent office epo maintained  
a faslodex formulation patent ep1250138 
following an opposition against the grant of 
this patent by gedeon richter plc which 
appealed this decision the board of  
appeal of the epo called the parties to oral 
proceedings in march 2014 and decided  
to remit the case back to the opposition 
division for further consideration
in brazil in january 2013 astrazeneca 
instituted proceedings against eurofarma 
laboratorios sa eurofarma asserting 
infringement of a formulation patent for 
faslodex in may 2013 eurofarma was  
found to infringe the patent eurofarma 
appealed and legal proceedings are in 
progress in february 2013 eurofarma 
separately filed nullity actions against the 
formulation patent in the 31st specialized 
intellectual property federal court of rio  
de janeiro and in april 2013 at the brazilian 
patent office bpo the bpo proceedings 
have been suspended but the federal  
court proceedings remain pending
losecprilosec omeprazole 
us patent litigation
in 2008 apotex inc apotex was found 
to infringe astrazeneca’s us patent 
nos 4786505 and 4853230 in 2013 the 
us district court for the southern district of 
new york ordered apotex to pay 76m in 
damages with an additional sum of 28m  
in prejudgment interest and an unspecified 
amount of postjudgment damages  
apotex appealed
patent proceedings outside the us
in canada the astrazeneca infringement 
proceeding against apotex inc remains 
pending
moventig naloxegol
patent proceedings outside the us
in october 2014 in europe generics uk 
trading as mylan filed an opposition to 
the grant of ep1694363 a moventig new 
chemical entity patent astrazeneca is 
licensed under this patent by virtue of 
the 2009 licence agreement with nektar 
therapeutics the european patent office 
has now invited the patent holder to file 
a response to the statement of grounds 
of opposition
nexium esomeprazole magnesium
us patent litigation
in 2014 astrazeneca received paragraph  
iv notice letters from companies seeking  
to market esomeprazole magnesium 20mg 
and 40mg delayedrelease capsules in 
response to these notice letters and 
corresponding anda filings astrazeneca 
generic drug manufacturers have 
commenced sales of generic rosuvastatin 
drug products in many jurisdictions where  
a substance patent is not in force
in march 2014 in the netherlands 
astrazeneca received a letter from resolution 
chemicals ltd resolution indicating that  
it had sought marketing authorisation for a 
rosuvastatin zinc product in the netherlands 
in april 2014 astrazeneca received a writ of 
summons from resolution alleging partial 
invalidity and noninfringement of the 
supplementary protection certificate related 
to the crestor substance patent a hearing  
is scheduled for 6 february 2015
in april 2014 in japan shionogi  co ltd 
the licensor of the crestor patent received 
confirmation of a request for trial for patent 
invalidation in the japanese patent office 
the request was initiated by teva pharma 
japan inc and relates to the crestor 
substance patent a hearing is scheduled  
for 25 february 2015
in australia in 2011 and 2012 astrazeneca 
instituted proceedings against actavis 
australia pty ltd apotex pty ltd and watson 
pharma pty ltd asserting infringement of 
various formulation and method patents for 
crestor in march 2013 the federal court of 
australia held all three patents at issue invalid 
astrazeneca appealed in relation to two 
patents in august 2014 the full court of the 
federal court of australia held the two patents 
invalid astrazeneca has sought leave to 
appeal to the high court in relation to one 
method patent
epanova omega3carboxylic acids 
us patent litigation 
in march 2014 and subsequently 
astrazeneca received complaints from 
amarin pharmaceuticals ireland ltd amarin 
alleging that astrazeneca’s epanova product 
infringes amarin’s us patent no 8663662  
in november 2014 the us district court for 
the district of delaware dismissed amarin’s 
complaints amarin may file a complaint  
at a later date
faslodex fulvestrant
us patent litigation 
in june and september 2014 astrazeneca 
filed patent infringement lawsuits against 
sandoz inc and sandoz international gmbh 
and sagent pharmaceuticals inc in the us 
district court in new jersey relating to four 
patents listed in the fda orange book with 
reference to faslodex after those companies 
sent paragraph iv notices that they are 
seeking fda approval to market generic 
versions of faslodex prior to the expiration of 
astrazeneca’s patents in january 2015 
astrazeneca received a paragraph iv  
notice from glenmark generics inc usa 
glenmark which is also seeking fda 
approval to market a generic version of 
financial statements  notes to the group financial statements astrazeneca annual report and form 20f information 2014 185
financial statements
27 commitments and contingent 
liabilities continued
in los angeles california the claims of 
additional plaintiffs are waiting to be added  
to the coordination in october 2014 the 
coordination judge dismissed the claims 
of the 492 noncalifornia plaintiffs whose 
claims were in the coordinated proceeding 
plaintiffs have appealed the october 2014 
order dismissing the noncalifornia plaintiffs 
from the proceeding there are now a total  
of 707 plaintiffs remaining with claims pending 
in california state court and two plaintiffs  
with claims pending in the eastern district  
of kentucky
nexium esomeprazole magnesium 
astrazeneca has been defending product 
liability lawsuits brought by approximately 
1900 plaintiffs who alleged that nexium 
caused osteoporotic injuries such as bone 
deterioration loss of bone density andor 
bone fractures and approximately 1700 of 
these plaintiffs’ claims were consolidated for 
pretrial proceedings in the us district court 
for the central district of california the court 
through the multidistrict litigation mdl 
process between november 2013 and 
september 2014 the court dismissed 
approximately 1440 plaintiffs’ claims 
in october 2014 the court granted 
astrazeneca’s motion for summary judgment 
as to all of the claims that remained pending 
in the mdl and entered judgment in 
astrazeneca’s favour as to all pending mdl 
claims approximately 270 plaintiffs have 
appealed this judgment to the 9th circuit 
court of appeals in addition fewer than  
40 plaintiffs’ claims remain active and 
pending in california state courts
onlgyza saxagliptin
amylin pharmaceuticals llc a wholly 
owned subsidiary of astrazeneca andor 
astrazeneca are among multiple defendants  
in various lawsuits filed in federal and state 
courts in the us involving a total of nine 
plaintiffs claiming physical injury from 
treatment with onglyza the lawsuits allege 
injuries including pancreatic cancer 
seroquel ir quetiapine fumarate and 
seroquel xr quetiapine fumarate
with regard to the seroquel ir product 
liability litigation in the us astrazeneca 
is currently defending two cases in active 
litigation each involving a single plaintiff
with regard to insurance coverage for 
the substantial legal defence costs and 
settlements that have been incurred in 
connection with the seroquel ir product 
liability claims in the us related to alleged 
diabetes andor other related alleged injuries 
which now exceed the total amount of 
insurance coverage available disputes 
continue with two insurers about the 
availability of coverage under certain 
insurance policies these policies have 
aggregate coverage limits of 100m
an arbitration is ongoing against one of 
the insurers in respect of a policy with a 
coverage limit of 50m
saxagliptin hydrochloride and metformin 
25mg1000mg 5mg1000mg and 
5mg500mg tablets containing a paragraph 
iv certification alleging that us patent nos 
8628799 7951400 andor re44186 listed 
in the fda orange book with reference to 
kombiglyze xr are invalid unenforceable 
andor will not be infringed by the products  
as described in the andas astrazeneca 
initiated patent infringement proceedings in 
the us federal court in delaware against all 
of the abovereferenced patent challenges
the district court denied mylan 
pharmaceuticals inc’s mylan motion 
to dismiss for lack of jurisdiction and 
subsequently certified the issue for 
interlocutory review mylan filed a petition with 
the federal circuit to accept the appeal and 
astrazeneca has opposed that petition 
astrazeneca also filed a protective lawsuit 
against mylan in the us district court for the 
district of west virginia which has been 
stayed pending the outcome of mylan’s 
motion to dismiss the delaware action
pulmicort respules budesonide 
inhalation suspension
us patent litigation 
in december 2013 the us district court  
for the district of new jersey temporarily 
enjoined the generic defendants from 
entering the market until resolution of 
astrazeneca’s motion for a preliminary 
injunction in october 2014 the court 
commenced a hearing on the preliminary 
injunction motion as well as a trial on the 
merits in respect of us patent no 7 524834 
closing arguments were submitted in 
january 2015 a decision is awaited 
seroquel xr quetiapine fumarate 
us patent litigation 
in september and october 2014 
astrazeneca received paragraph iv notices 
from pharmadax inc and pharmadax usa 
inc together pharmadax alleging that 
the patent listed in the fda orange book  
with reference to seroquel xr is invalid 
unenforceable andor is not infringed by  
the pharmadax proposed generic product 
pharmadax has submitted an anda seeking 
to market quetiapine fumarate 50mg  
150mg 200mg 300mg and 400mg tablets 
in october and november 2014 astrazeneca 
filed patent infringement lawsuits against 
pharmadax in the us district court for the 
district of new jersey in october 2014 
astrazeneca also filed a similar patent 
infringement suit in the us district court for 
the central district of california southern 
division which was subsequently dismissed 
by the court with astrazeneca’s consent
patent proceedings outside the us
in germany ratiopharm gmbh ct 
arzneimittel gmbh and abz pharma gmbh 
are seeking damages relating to the 
preliminary injunction issued in april 2012  
that prevented generic seroquel xr sales  
by those entities the injunction was 
subsequently lifted following the november 
2012 federal patent court the federal court 
decision that held that the seroquel xr 
patent was invalid in january 2015 
the federal court of justice denied 
astrazeneca’s appeal of the november  
2012 federal court decision 
in romania in march 2014 astrazeneca 
settled patent litigation with teva 
pharmaceutical industries ltd and teva 
pharmaceuticals srl
in the netherlands in june 2014 the dutch 
court of appeal in the hague reversed the 
march 2012 opinion of the commercial  
court and found the seroquel xr formulation 
patent invalid 
vimovo naproxen
esomeprazole magnesium
us patent litigation
in the us district court for the district of  
new jersey patent infringement actions are 
ongoing against generic challengers seeking 
approval to market generic copies of vimovo 
prior to expiry of astrazeneca’s patents listed 
in the fda orange book 
zestril lisinopril dihydrate 
patent proceedings outside the us
in canada astrazeneca and merck  co 
inc merck frosst canada  co and merck 
frosst canada ltd merck sued apotex inc 
apotex for infringement of merck’s patent 
no 1275350 in 2006 apotex was found to 
infringe the patent astrazeneca and merck 
commenced a reference to determine the 
quantum of damages in december 2014 the 
parties settled the reference
product liability litigation
byettabydureon exenatide 
amylin pharmaceuticals llc a wholly 
owned subsidiary of astrazeneca andor 
astrazeneca are among multiple defendants  
in various lawsuits filed in federal and state 
courts in the us involving approximately  
1474 plaintiffs claiming physical injury from 
treatment with byetta andor bydureon the 
lawsuits allege multiple types of injuries 
including pancreatitis pancreatic cancer and 
thyroid cancer a multidistrict litigation has 
been established in the us district court for 
the southern district of california in regard  
to the alleged pancreatic cancer cases 
in federal courts further a coordinated 
proceeding has been established in los 
angeles california in regard to the various 
lawsuits in california state courts
crestor rosuvastatin calcium
astrazeneca is defending a number of lawsuits 
alleging multiple types of injuries caused by 
the use of crestor including diabetes mellitus 
various cardiac injuries rhabdomyolysis and
or liver and kidney injuries the claims of 594 
plaintiffs comprising 102 california residents 
and 492 noncalifornia residents were 
aggregated in one coordinated proceeding   astrazeneca annual report and form 20f information 2014 186
settlement antitrust litigation
astrazeneca is a defendant in a multidistrict 
litigation class action and individual lawsuits 
alleging that astrazeneca’s settlements of 
certain patent litigation in the us relating 
to nexium violated us antitrust law and 
various state laws a trial in the us district 
court for the district of massachusetts 
commenced on 20 october 2014 on certain 
liability issues for claims that remain in the 
case on 5 december 2014 a jury returned  
a verdict in favour of astrazeneca on 31 
december 2014 the plaintiffs filed motions 
for a new trial on 7 january 2015 the 
plaintiffs filed motions for a permanent 
injunction astrazeneca opposed those 
motions a hearing on the plaintiffs’ motions 
for a permanent injunction is scheduled  
for 6 february 2015 
on 10 december 2014 following the 
favourable jury verdict astrazeneca filed 
a motion requesting dismissal of its appeal  
of the district court’s procedural decision to 
certify a class of end payers on 21 january 
2015 the court of appeals denied 
astrazeneca’s request to dismiss the appeal 
and issued a decision affirming the district 
court’s class certification ruling 
the two lawsuits filed in pennsylvania state 
court by various indirect purchasers of 
nexium are pending the cases are in their 
initial stages
seroquel  ir quetiapine fumarate and 
seroquel xr quetiapine fumarate 
in relation to the state law claims brought by 
state attorneys general generally alleging that 
astrazeneca made false andor misleading 
statements in marketing and promoting 
seroquel astrazeneca remains in litigation 
with the attorney general of mississippi
qui tam litigation 
in april 2014 astrazeneca was served with  
a lawsuit filed in the us district court for  
the district of delaware under the qui tam 
whistleblower provisions of the federal false 
claims act and related state statutes alleging 
that astrazeneca directed certain employees 
to promote seroquel offlabel and provided 
unlawful remuneration to physicians the 
doj and all us states have declined to 
intervene in the lawsuit
texas attorney general litigation
in october 2014 following a previously 
disclosed investigation by the state of texas 
into astrazeneca’s sales and marketing 
activities involving seroquel the texas 
attorney general’s office intervened in a  
state whistleblower action pending in travis 
county court texas the lawsuit alleges  
that astrazeneca engaged in inappropriate 
promotion of seroquel and made improper 
payments intended to influence the formulary 
status of seroquel 
synagis palivizumab 
in september 2011 medimmune filed 
an action against abbvie inc abbvie 
formerly abbott international llc in the 
circuit court for montgomery county 
maryland seeking a declaratory judgment  
in a contract dispute abbvie’s motion to 
dismiss was granted in september 2011 
abbvie filed a parallel action against 
medimmune in the illinois state court  
where the case is currently pending 
other commercial litigation
average manufacturer’s price qui tam 
litigation streck
astrazeneca is one of several manufacturers 
named as a defendant in a lawsuit filed in the 
us federal court in philadelphia under the 
qui tam whistleblower provisions of the 
federal and certain state false claims acts 
alleging inaccurate reporting of average 
manufacturer’s prices to the centers for 
medicare and medicaid services the action 
was initially filed in october 2008 but 
remained under seal until may 201 1 following 
the us government’s decision not to 
intervene in the case with regard to certain 
manufacturers including astrazeneca 
a provision has been taken
average wholesale price awp litigation 
astrazeneca and other pharmaceutical 
manufacturers were named as defendants in 
litigation involving allegations that by causing 
the publication of allegedly inflated wholesale 
list prices defendants caused entities to 
overpay for prescription drugs in march 
2014 astrazeneca reached a settlement  
with the state of utah and in april 2014 
astrazeneca reached a settlement with the 
state of wisconsin with these settlements 
astrazeneca has brought the awp litigation 
to a conclusion
medco qui tam litigation schumann 
astrazeneca was named as a defendant  
in a lawsuit filed in the federal court in 
philadelphia the court under the qui tam 
whistleblower provisions of the federal  
and certain state false claims acts  
alleging overpayments by federal and 
state governments resulting from alleged 
false pricing information reported to the 
government and alleged improper payments 
intended to influence the formulary status  
of prilosec and nexium to medco and its 
customers in january 2013 the court 
granted astrazeneca’s motion and dismissed 
the case with prejudice the plaintiff 
appealed in october 2014 the us court  
of appeals for the third circuit affirmed the 
lower court’s decision to dismiss astrazeneca 
from the litigation with prejudice
government investigationsproceedings 
except as otherwise noted the precise 
parameters of the following inquiries are 
unknown and astrazeneca is not in a 
position at this time to predict the scope 
duration or outcome of these matters 
astrazeneca has not recognised an 
insurance receivable in respect of these  
legal actions
commercial litigation 
crestor rosuvastatin calcium 
qui tam litigation 
in january and february 2014 astrazeneca 
was served with lawsuits filed in the us 
district court for the district of delaware 
under the qui tam whistleblower provisions 
of the federal false claims act and related 
state statutes alleging that astrazeneca 
directed certain employees to promote 
crestor offlabel and provided unlawful 
remuneration to physicians in connection  
with the promotion of crestor the doj and 
all us states have declined to intervene  
in the lawsuits
texas attorney general litigation
in january 2015 following a previously 
disclosed investigation by the state of texas 
into astrazeneca’s sales and marketing 
activities involving crestor astrazeneca was 
served with a lawsuit in which the texas 
attorney general’s office intervened in a  
state whistleblower action pending in travis 
county court texas the lawsuit alleges  
that astrazeneca engaged in inappropriate 
promotion of crestor and improperly 
influenced the formulary status of crestor 
israel
in november 2012 a motion to certify 
a claim as a class action and statement 
of claim were filed in israel in the district 
court in tel aviv jaffa against astrazeneca 
and four other pharmaceutical companies  
for alleged deception and failure to disclose 
material facts to consumers regarding 
potential adverse events associated with 
certain drugs including crestor  in july 2013 
an amended motion to certify a claim as 
a class action and statement of claim 
containing similar allegations to those in 
the first action were filed in the same court 
against the same defendants the court has 
not yet ruled on the motion to certify 
nexium esomeprazole magnesium 
consumer litigation 
astrazeneca is a defendant in a class action 
filed in delaware state court alleging that 
astrazeneca’s promotion advertising and 
pricing of nexium to physicians consumers 
and third party payers was unfair unlawful 
and deceptive the action which is the  
last of a number of lawsuits previously 
resolved was stayed until 6 february 2014 
on 9 january 2015 astrazeneca filed a 
motion to dismiss for failure to state a claim 
and in the alternative a motion to strike 
certain allegations
27 commitments and contingent 
liabilities continued
financial statements  notes to the group financial statements astrazeneca annual report and form 20f information 2014 187
financial statements
internal controls certain distributors and 
interactions with healthcare providers and 
other government officials in several 
countries astrazeneca is cooperating with 
these inquiries astrazeneca’s investigation 
has involved indications of inappropriate 
conduct in certain countries including china 
resolution of this matter could involve the 
payment of fines andor other remedies
good manufacturing practices subpoena 
in march 2013 astrazeneca received 
a subpoena duces tecum from the us 
attorney’s office in boston seeking 
documents and information relating to 
products manufactured or packaged at 
astrazeneca’s macclesfield facility in the uk 
astrazeneca is cooperating with this inquiry
medco
the us attorney’s office for the district of 
delaware criminal division conducted 
an investigation relating to astrazeneca’s 
relationship with medco and sales of nexium 
plendil prilosec and toprolxl in addition 
the us attorney’s office for the district of 
delaware and the doj investigated potential 
civil claims relating to the same conduct this 
matter has been resolved and a provision 
was previously taken
additional government inquiries
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 
inquiries into drug marketing and pricing 
practices in addition to the investigations 
described above various federal and state 
law enforcement offices have from time to 
time requested information from the group 
there have been no material developments  
in those matters
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 as accruals 
can be built up over a long period of time  
but the ultimate resolution of tax exposures 
usually occurs at a point in time and given 
the inherent uncertainties in assessing 
the outcomes of these exposures which 
sometimes can be binary in nature we 
could in future periods experience 
adjustments to these accruals that have  
a material positive or negative effect on  
our results in any particular period
transfer pricing and other international tax 
contingencies
the total net accrual included in the group 
financial statements to cover the worldwide 
exposure to transfer pricing audits is 595m 
an increase of 72m compared to 2013 
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
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 521m 2013 529m 2012 522m 
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 1680m relating 
to a number of other tax contingencies a 
reduction of 373m mainly due to releases 
following expiry of statute of limitations and 
exchange rate effects offset by the impact of 
an additional year of transactions relating to 
contingencies for which accruals had already 
been established 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 227m 
2013 344m 2012 248m interest is 
accrued as a tax expense
including whether they will result in any 
liability to astrazeneca
brilinta ticagrelor 
in october 2013 astrazeneca received a civil 
investigative demand from the doj civil 
division seeking documents and information 
regarding plato a clinical trial about brilinta 
in august 2014 astrazeneca announced that 
it had received confirmation from the doj that 
it was closing its investigation astrazeneca 
understands that the us government is not 
planning any further action
crestor rosuvastatin calcium 
the doj and all us states have declined to 
intervene in the civil component of a 
previously disclosed investigation regarding 
crestor additional components of the 
investigation by the doj continue
synagis palivizumab 
in june 2011 medimmune received a 
demand from the us attorney’s office for  
the southern district of new york requesting 
certain documents related to the sales and 
marketing activities of synagis in july 2011 
medimmune received a similar court order  
to produce documents from the office of the 
attorney general for the state of new york 
medicaid and fraud control unit pursuant to 
what the government attorneys advised was a 
joint investigation medimmune has accepted 
receipt of these requests and is coordinating 
with the government offices to provide the 
appropriate responses and cooperate with 
any related investigation
in may 2012 medimmune received a 
subpoena duces tecum from the office of 
attorney general for the state of florida 
medicaid and fraud control unit requesting 
certain documents related to the sales and 
marketing activities of synagis medimmune 
has accepted receipt of the request and has 
coordinated with the florida government 
to provide the appropriate responses and 
cooperated with any related investigation 
astrazeneca is unaware of the nature or 
focus of the investigation however based on 
the nature of the requests it appears to be 
similar to the inquiries from the state of new 
york and doj which is described above
other government  
investigationsproceedings 
dutch national competition 
authority investigation 
in december 2014 the dutch national 
competition authority the acm issued its 
decision that astrazeneca had not abused  
a dominant position with respect to nexium  
it has now closed its file
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 doj and the sec 
regarding among other things sales practices 
27 commitments and contingent 
liabilities continued astrazeneca annual report and form 20f information 2014 188
28 operating leases
total rentals under operating leases charged to profit were as follows
2014
m
2013
m
2012
m
operating leases 185 188 197
the future minimum lease payments under operating leases that have initial or remaining terms in excess of one year at 31 december 2014 
were as follows
2014
m
2013
m
2012
m
obligations under leases comprise
not later than one year 100 92 102
later than one year and not later than five years 247 248 223
later than five years 91 110 109
total future minimum lease payments 438 450 434
29 statutory and other information
2014
m
2013
m
2012
m
fees payable to kpmg llp and its associates
group audit fee 25 22 22
fees payable to kpmg llp and its associates for other services
the audit of subsidiaries pursuant to legislation 50 50 50
auditrelated assurance services 25 26 22
tax compliance services 03 06 08
tax advisory services – – 01
other assurance services 05 06 11
corporate finance services – 05 –
fees payable to kpmg llp in respect of the group’s pension schemes
the audit of subsidiaries’ pension schemes 05 04 05
113
1
119
1
119
1
1
 2014 fees payable to kpmg llp 2013 and 2012 fees payable to kpmg audit plc
auditrelated assurance services include fees of 18m 2013 17m 2012 17m in respect of section 404 of the sarbanesoxley act
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
2014
’000
2013
’000
2012
’000
shortterm employee benefits 30252 25029 19451
postemployment benefits 2265 2323 2137
termination benefits – 3855 1672
sharebased payments 20253 16509 15304
52770 47716 38564
total remuneration is included within employee costs see note 26 further details of directors’ emoluments are included in the directors’ 
remuneration report from pages 100 to 128
30 subsequent events
on 12 january 2015 the group completed the sale of myalept metreleptin to aegerion pharmaceuticals inc under the terms of the 
agreement aegerion have paid astrazeneca 325m to acquire the global rights to develop manufacture and commercialise myalept subject 
to an existing distributor licence with shionogi covering japan south korea and taiwan the transaction did not include the transfer of any 
astrazeneca employees or facilities at 31 december 2014 the group’s balance sheet included 126m of intangible assets associated with 
myalept which were disposed of in this transaction
financial statements  notes to the group financial statements astrazeneca annual report and form 20f information 2014 189
at 31 december 2014 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
astrazeneca dunkerque production scs france 100 manufacturing
astrazeneca sas france 100 research manufacturing marketing
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 netherlands 100 marketing
the americas
astrazeneca do brasil limitada brazil 100 manufacturing marketing
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
amylin pharmaceuticals llc us 100 manufacturing
astrazeneca lp us 100 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
az wuxi trading co limited china 100 marketing
astrazeneca kk japan 100 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 astrazeneca operates through 191 subsidiaries worldwide products are manufactured in  
17 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 2014
principal subsidiaries
financial statements astrazeneca annual report and form 20f information 2014 190
opinions and conclusions 
arising from our audit
1 our opinion on the parent company 
financial statements is unmodified 
we have audited the parent company 
financial statements of astrazeneca plc 
for the year ended 31 december 2014 set out 
on pages 191 to 195 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 
2014
  have been properly prepared in 
accordance with uk accounting 
standards and 
  have been prepared in accordance with the 
requirements of the companies act 2006 
2 our opinion on other matters prescribed 
by the companies act 2006 is unmodified 
in our opinion 
  the part of the directors’ remuneration 
report to be audited has been properly 
prepared in accordance with the 
companies act 2006 and
  the information given in the strategic 
report and the directors’ report 
for the financial year for which the 
financial statements are prepared is 
consistent with the parent company 
financial statements
3 we have nothing to report in respect 
of the matters on which we are required  
to report by exception 
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 or 
  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 or 
  certain disclosures of directors’ 
remuneration specified by law are 
not made or 
  we have not received all the information 
and explanations we require for our audit
we have nothing to report in respect of the 
above responsibilities
4 other matter – we have reported 
separately on the group financial 
statements 
we have reported separately on the group 
financial statements of astrazeneca plc  
for the year ended 31 december 2014 
scope of report and responsibilities 
as explained more fully in the directors’ 
responsibilities statement set out on 
page 129 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 a 
description of the scope of an audit of 
financial statements is provided on the 
financial reporting council’s website at 
wwwfrcorgukauditscopeukprivate 
this report is made solely to the company’s 
members as a body and is subject to 
important explanations and disclaimers 
regarding our responsibilities published 
on our website wwwkpmgcomuk
auditscopeukco2014a which are 
incorporated into this report as if set out  
in full and should be read to provide an 
understanding of the purpose of this report 
the work we have undertaken and the basis 
of our opinions
antony cates
senior statutory auditor
for and on behalf of kpmg llp 
statutory auditor 
chartered accountants 
15 canada square london e14 5gl
5 february 2015
independent auditor’s report to the members  
of astrazeneca plc only
financial statements astrazeneca annual report and form 20f information 2014 191
astrazeneca plc
notes
2014
m
2013
m
fixed assets
fixed asset investments 1 27426 27269
current assets
debtors – other 15 14
debtors – amounts owed by group undertakings 7303 7713
7318 7727
creditors amounts falling due within one year
nontrade creditors 2 1467 957
interestbearing loans and borrowings 3 912 750
2379 1707
net current assets 4939 6020
total assets less current liabilities 32365 33289
creditors amounts falling due after more than one year
amounts owed to group undertakings 3 283 283
interestbearing loans and borrowings 3 7889 8052
8172 8335
net assets 24193 24954
capital and reserves
calledup share capital 6 316 315
share premium account 4 4261 3983
capital redemption reserve 4 153 153
other reserves 4 2754 2847
profit and loss account 4 16709 17656
shareholders’ funds 5 24193 24954
m means millions of us dollars
the company financial statements from page 191 to 195 were approved by the board on 5 february 2015 and were signed on its behalf by
pascal soriot marc dunoyer
director  director
company’s registered number 2723534
company balance sheet
at 31 december
financial statements astrazeneca annual report and form 20f information 2014 192
basis of accounting
the company financial statements are 
prepared under the historical cost convention  
in accordance with the companies act  
2006 and uk gaap the group financial 
statements are presented on pages 134 to 
189 and have been prepared in accordance 
with ifrss as adopted by the eu and as 
issued by the iasb and in accordance with 
the group accounting policies set out on 
pages 138 to 142
the following paragraphs describe the main 
accounting policies under uk gaap which 
have been applied consistently
accounting standards issued but not yet 
adopted
frs 101 ‘reduced disclosure framework’ 
and frs 102 ‘the financial reporting 
standard applicable in the uk and the 
republic of ireland’ have been issued by the 
financial reporting council and are effective 
for accounting periods beginning on or after 
1 january 2015 the company intends to 
adopt frs 101 as the basis for preparation  
of its companyonly financial statements for 
the year ended 31 december 2015 and will  
in accordance with the frc’s reduced 
disclosure framework provide an opportunity 
for shareholders to serve objections to the 
company’s proposal
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 and
or 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 less any provision for impairment
sharebased payments
the issuance by the company to employees 
of its subsidiaries of a grant of awards over 
the company’s shares 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 less the 
market cost of shares charged to subsidiaries  
in settlement of such share awards
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 
astrazeneca 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
company accounting policies
financial statements astrazeneca annual report and form 20f information 2014 193
1 fixed asset investments
investments in subsidiaries
shares
m
loans
m
total
m
at 1 january 2014 16271 10998 27269
additions – 1306 1306
transfer to current assets – 1034 1034
capital reimbursement 85 – 85
exchange – 33 33
amortisation – 3 3
at 31 december 2014 16186 11240 27426
a list of principal subsidiaries is included on page 189
2 nontrade creditors
2014
m
2013
m
amounts due within one year
shortterm borrowings unsecured 1309 789
other creditors 150 161
amounts owed to group undertakings 8 7
1467 957
3 loans
repayment
dates
2014
m
2013
m
amounts due within one year
interestbearing loans and borrowings unsecured
54 callable bond us dollars 2014 – 750
5125 noncallable bond euros 2015 912 –
912 750
amounts due after more than one year 
amounts owed to subsidiaries unsecured
72 loan us dollars 2023 283 283
interestbearing loans and borrowings unsecured
5125 noncallable bond euros 2015 – 1035
59 callable bond us dollars 2017 1747 1746
195 callable bond us dollars 2019 996 996
0875 noncallable bond euros 2021 902 –
575 noncallable bond pounds sterling 2031 540 573
645 callable bond us dollars 2037 2718 2717
4 callable bond us dollars 2042 986 985
7889 8052
2014
m
2013
m
loans or instalments thereof are repayable
after five years from balance sheet date 5429 5554
from two to five years 2743 1746
from one to two years – 1035
within one year 912 750
total unsecured 9084 9085
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
financial statements astrazeneca annual report and form 20f information 2014 194
4 reserves
share
premium
account 
m
capital
redemption
reserve 
m
other
reserves 
m
profit 
and loss
account 
m
2014
total 
m
2013
total 
m
at beginning of year 3983 153 2847 17656 24639 21648
profit for the year – – – 2584 2584 6067
dividends – – – 3532 3532 3499
amortisation of loss on cash flow hedge – – – 1 1 1
sharebased payments – – 93 – 93 57
issue of astrazeneca plc ordinary shares 278 – – – 278 479
at end of year 4261 153 2754 16709 23877 24639
distributable reserves at end of year – – 1841 16709 18550 19497
as permitted by section 4084 of the companies act 2006 the company has not presented its own profit and loss account
at 31 december 2014 16709m 2013 17 656m 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 2014 is 913m 2013 1006m in respect of cumulative sharebased payment awards these 
amounts are not available for distribution
5 reconciliation of movement in shareholders’ funds
2014
m
2013
m
at beginning of year 24954 21960
net profit for the financial year 2584 6067
dividends 3532 3499
amortisation of loss on cash flow hedge 1 1
sharebased payments 93 57
issue of astrazeneca plc ordinary shares 279 482
net decreaseincrease in shareholders’ funds 761 2994
shareholders’ funds at end of year 24193 24954
details of dividends paid and payable to shareholders are given in note 23 to the group financial statements
6 share capital
allotted calledup and fully paid
2014
m
2013
m
issued ordinary shares 025 each 316 315
redeemable preference shares £1 each – £50000 – –
316 315
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 m
at 1 january 2014 1257170087 315
issues of shares 5973251 1
at 31 december 2014 1263143338 316
share option schemes
a total of 60m ordinary shares were issued during the year in respect of share option schemes 2013 104m ordinary shares details of 
directors’ interests in options are shown in the directors’ remuneration report
shares held by subsidiaries
no shares in the company are held by subsidiaries
financial statements  notes to the company financial statements astrazeneca annual report and form 20f information 2014 195
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 
include the seroquel  ir product liability litigation and the nexium product liability litigation each of which are described more fully in note 27  
to the group financial statements
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 doj and the sec regarding among other things sales practices internal controls certain distributors and interactions  
with healthcare providers and other government officials in several countries astrazeneca is cooperating with these inquiries astrazeneca’s 
investigation has involved indications of inappropriate conduct in certain countries including china resolution of this matter could involve  
the payment of fines andor other remedies
dutch national competition authority investigation
in december 2014 the dutch national competition authority the acm issued its decision that astrazeneca had not abused a dominant 
position with respect to nexium it has now closed its file
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 2014 and 2013
financial statements astrazeneca annual report and form 20f information 2014 196
for the year ended 31 december
2010
restated
2
m
2011
restated
2
m
2012
restated
2
m
2013
m
2014
m
revenue and profits
revenue 33269 33591 27973 25711 26095
cost of sales 6389 6026 5393 5261 5842
distribution costs 335 346 320 306 324
research and development expense 5318 5523 5243 4821 5579
selling general and administrative costs 10414 11161 9839 12206 13000
profit on disposal of subsidiary – 1483 – – –
other operating income and expense 712 777 970 595 787
operating profit 11525 12795 8148 3712 2137
finance income 65 50 42 50 78
finance expense 660 562 544 495 963
share of after tax losses of joint ventures – – – – 6
profit before tax 10930 12283 7646 3267 1246
taxation 2880 2333 1376 696 11
profit for the period 8050 9950 6270 2571 1235
other comprehensive income for the period net of tax 85 480 135 113 1506
total comprehensive income for the period 8135 9470 6405 2458 271
profit attributable to
equity holders of the company 8022 9917 6240 2556 1233
noncontrolling interests 28 33 30 15 2
earnings per share
earnings per 025 ordinary share basic 558 729 495 204 098
earnings per 025 ordinary share diluted 555 725 494 204 098
dividends 241 270 285 280 280
return on revenues
operating profit as a percentage of revenues 346 381 291 144 82
ratio of earnings to fixed charges 252 295 199 99 61
at 31 december
2010
restated
2
m
2011
restated
2
m
2012
restated
2
m
2013
m
2014
m
statement of financial position
property plant and equipment goodwill and intangible assets 28986 27267 32435 31846 38541
other investments and noncurrent receivables 535 543 940 2513 2138
deferred tax assets 1475 1514 1111 1205 1219
current assets 25131 23506 19048 20335 16697
total assets 56127 52830 53534 55899 58595
current liabilities 16787 15752 13903 16051 17330
noncurrent liabilities 15936 13612 15685 16595 21619
net assets 23404 23466 23946 23253 19646
share capital 352 323 312 315 316
reserves attributable to equity holders 22855 22917 23419 22909 19311
noncontrolling interests 197 226 215 29 19
total equity and reserves 23404 23466 23946 23253 19646
for the year ended 31 december
2010
m
2011
m
2012
m
2013
m
2014
m
cash flows
net cash inflowoutflow from
operating activities 10680 7821 6948 7400 7058
investing activities
1
2226 2022 1859 2889 7032
financing activities
1
7334 9321 4923 3047 2705
1120 3522 166 1464 2679
1
 investing activities and financing activities were restated in 2011 to reclassify cash paid in hedge contracts relating to dividend payments from investing activities to financing activities
2
 restatement in 2013 on adoption of ias 19 2011 as detailed in the accounting policies section of the 2013 group financial statements
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
financial statements additional information
development pipeline
as at 31 december 2014
phase iiipivotal phase iiregistration
nmes and significant additional indications
submission dates shown for assets in phase iii and beyond as disclosure of compound information is balanced by the business need  
to maintain confidentiality information in relation to some compounds listed here has not been disclosed at this time
compound mechanism area under investigation
date 
commenced 
phase 
estimated filing
us eu japan china
cardiovascular and metabolic diseases
brilintabrilique
1
 adp receptor antagonist arterial thrombosis launched launched filed launched
epanova

omega3 free fatty acids hypertriglyceridaemia approved 2017 2019
farxigaforxiga
2
sglt2 inhibitor type 2 diabetes launched launched launched filed
myalept
3
leptin analogue lipodystrophy launched q4 2015 na
roxadustat

 hypoxiainducible factor prolyl 
hydroxylase inhibitor
anaemia in ckdesrd q3 2014 2018 na na h2 2016
oncology
azd9291 egfr tyrosine kinase inhibitor advanced egfrm t790m nsclc q2 2014 q2 2015 q2 2015 q3 2015 2017
caprelsa vegfregfr tyrosine kinase 
inhibitor with ret kinase activity
medullary thyroid cancer launched launched filed filed
medi4736

 pacific antipdl1 mab stage iii nsclc q2 2014 2017 2020 2020
medi4736

 atlantic
¶
antipdl1 mab 3rd line nsclc q1 2014 h1 2016 2017 2017
moxetumomab pasudotox

anticd22 recombinant 
immunotoxin
hairy cell leukaemia q2 2013 2018 2018
lynparza olaparib parp inhibitor brcam psr ovarian cancer launched
4 
approved
lynparza olaparib solo1 parp inhibitor 1st line brcam ovarian cancer q3 2013 2017 2017 2017 2018
lynparza olaparib solo2 parp inhibitor brcam psr ovarian cancer q3 2013 h1 2016 h1 2016 h2 2016 2018
lynparza olaparib gold parp inhibitor 2nd line gastric cancer q3 2013 2017 2018
lynparza olaparib olympia parp inhibitor adjuvant breast cancer q2 2014 2020 2020 2020 2021
lynparza olaparib olympiad parp inhibitor metastatic breast cancer q2 2014 2016 2016 2016 2018
selumetinib

 select1 mek inhibitor 2nd line kras nsclc q4 2013 2017 2017
selumetinib

 astra mek inhibitor differentiated thyroid cancer q3 2013 2017 2017
selumetinib

 sumit mek inhibitor uveal melanoma q2 2014 q4 2015 q4 2015
tremelimumab
¶
antictla4 mab mesothelioma q2 2014 h1 2016 h2 2016
respiratory inflammation and autoimmunity
benralizumab

 calima  
sirocco zonda bora
antiil 5r mab severe asthma q4 2013 h2 2016 h2 2016
benralizumab

 terranova 
galathea
antiil 5r mab copd q3 2014 2018 2018
brodalumab

 amagine123 antiil 17r mab psoriasis q3 2012 2015 2015
brodalumab

 amvision12 antiil 17r mab psoriatic arthritis q1 2014  
lesinurad clear 12 crystal selective uric acid reabsorption 
inhibitor suri 
chronic treatment of patients  
with gout
q4 2011 q1 2015
5
filed
6
pt003 gff lamalaba copd q2 2013 q3 2015 h1 2016 2017 2017
pt001 gp lama copd q2 2013
tralokinumab stratos 12 
tropos
antiil 13 mab severe asthma q3 2014 2018 2018 2018
infection
caz avi

 reclaim cephalosporinbeta lactamase 
inhibitor 
serious infections q1 2012 na q1 2015 h2 2016
caz avi

 reprove cephalosporinbeta lactamase 
inhibitor
hospitalacquired pneumonia
ventilatorassociated pneumonia
q2 2013 na 2017 2018
zinforo

 extended spectrum  
cephalosporin with affinity to 
penicillinbinding proteins 
pneumoniaskin infections na launched na filed
neuroscience
movantikmoventig
7
oral peripherallyacting muopioid 
receptor antagonist
opioidinduced constipation approved approved
 partnered product
¶
 registrational phase iiiii study

 filing is the responsibility of the partner
1
 brilinta in the us brilique in rest of world
2
 farxiga in the us forxiga in rest of world
3
 divested to aegerion effective 9 january 2015
4
 launched simultaneously with us approval december 2014
5
 submission made in us in december 2014 acceptance anticipated q1 2015
6
 filing accepted january 2015
7 
movantik in the us moventig in eu
197 astrazeneca annual report and form 20f information 2014
additional information additional information
phases i and ii 
nmes and significant additional indications
compound mechanism area under investigation phase
date 
commenced 
phase 
estimated filing
us eu japan china
cardiovascular and metabolic diseases
tenapanor azd1722

nhe3 inhibitor esrdpickd with t2dm
1
 ii q1 2013
azd4901 hormone modulator polycystic ovarian syndrome ii q2 2013
medi6012 lcat acs i q1 2012
medi8111 rhfactor ii traumableeding i q1 2014
oncology
azd1775

wee1 inhibitor ovarian cancer ii q4 2012
azd2014 mtor serinethreonine kinase 
inhibitor
solid tumours ii q1 2013
azd4547 fgfr tyrosine kinase inhibitor solid tumours ii q4 2011
medi551

anticd19 mab clldlbcl ii q1 2012
medi573

 antiigf mab metastatic breast cancer ii q2 2012
lynparza olaparib parp inhibitor prostate cancer ii q3 2014
selumetinib

mek inhibitor 2nd line kras nsclc ii q1 2013
azd5363

akt kinase inhibitor breast cancer ii q1 2014
medi4736

antipdl1 mab solid tumours ii q3 2014
moxetumomab pasudotox

anticd22 recombinant 
immunotoxin
pall ii q3 2014
azd6094 volitinib

met tyrosine kinase inhibitor papillary renal cell carcinoma ii q2 2014
azd9291 egfr tyrosine kinase inhibitor 1st line advanced egfrm 
nsclc
ii q4 2014
azd3759 egfr tyrosine kinase inhibitor advanced egfrm nsclc i q4 2014
azd5312

androgen receptor inhibitor solid tumours i q2 2014
azd6738 atr serinethreonine kinase 
inhibitor
solid tumours i q4 2013
azd8186 pi3 kinase beta inhibitor solid tumours i q2 2013
azd8835 pi3 kinase alpha inhibitor solid tumours i q4 2014
azd9150

 stat3 inhibitor haematological malignancies i q1 2012
azd9291  medi4736

 or 
selumetinib

 or volitinib

 
tatton
egfr tyrosine kinase inhibitor  
 antipdl1 or mek inhibitor 
or met tyrosine kinase inhibitor
advanced egfrm nsclc i q3 2014
azd9496 selective oestrogen receptor 
downregulator serd
er breast cancer i q4 2014
medi4736

 after azd9291 or 
iressa or selumetinib

  
 docetaxel or tremelimumab 
antipdl1 mab  egfr 
tyrosine kinase inhibitor or mek 
inhibitor or antictla4 mab
nsclc i q3 2014
medi565

anticea bite mab solid tumours i q1 2011
medi0639

antidll 4 mab solid tumours i q2 2012
medi0680 antipd1 mab solid tumours i q4 2013
medi3617

antiang2 mab solid tumours i q4 2010
medi4736

antipdl1 mab various cancers i q3 2014
medi4736

  medi0680 antipdl1 mab  antipd1 
mab
solid tumours i q2 2014
medi4736

  medi6469

antipdl1 mab  murine  
ox40 agonist
solid tumours i q3 2014
medi4736

  dabrafenib  
trametinib
2
antipdl1 mab  braf 
inhibitor  mek inhibitor
melanoma i q1 2014
medi4736

  iressa antipdl1 mab  egfr 
tyrosine kinase inhibitor
nsclc i q2 2014
medi4736

  tremelimumab antipdl1 mab  anti 
ctla4 mab
solid tumours i q4 2013
medi551

  medi0680 anticd19 mab  antipd1 
mab
dlbcl i q4 2014
medi551

  rituximab
3
anticd19 mab  anticd20 
mab
haematological malignancies i q2 2014
medi6383

ox40 agonist solid tumours i q3 2014
medi6469

murine ox40 agonist solid tumours i q1 2006
medi6469

  tremelimumab murine ox40 agonist  
antictla4 mab
solid tumours i q4 2014
development pipeline continued
198 astrazeneca annual report and form 20f information 2014 compound mechanism area under investigation phase
date 
commenced 
phase 
estimated filing
us eu japan china
respiratory inflammation and autoimmunity
azd0548 laba asthmacopd ii q4 2007
azd2115
4
maba copd ii q2 2012
azd7624 inhaled p38 inhibitor copd ii q4 2014
azd9412

inhaled interferon ß asthmacopd ii q1 2010
anifrolumab

antiifnalphar mab sle ii q1 2012
brodalumab

antiil 17r mab asthma ii q2 2013
mavrilimumab

antigmcsfr mab rheumatoid arthritis ii q1 2010
medi2070

antiil 23 mab crohn’s disease ii q1 2013
medi7183

antia4b7 mab crohn’s diseaseulcerative 
colitis
ii q4 2012
medi9929

antitslp mab asthma ii q2 2014
pt010 lamalabaics copd ii q2 2014
rdea3170 selective uric acid reabsorption 
inhibitor suri
chronic management of 
hyperuricaemia in patients  
with gout
ii q3 2013
sifalimumab

antiifnalpha mab sle ii q3 2008
tralokinumab antiil 13 mab ipf ii q4 2012
azd1419

 tlr9 agonist asthma i q3 2013
azd7594 inhaled sgrm asthmacopd i q3 2012
azd8999 maba copd i q4 2013
medi551

anticd19 mab multiple sclerosis i q3 2012
medi4920 anticd40l tn3 fusion protein primary sjögren’s syndrome i q2 2014
medi5872

antib7rp1 mab sle i q4 2008
infection
azd0914 gyrar serious bacterial infections ii q4 2014
azd5847 oxazolidinone antibacterial 
inhibitor
tuberculosis ii q4 2012
cxl

 beta lactamase inhibitor
cephalosporin
mrsa ii q4 2010
medi4893 mab binding to s aureus toxin hospitalacquired pneumonia
serious s aureus infection
ii q4 2014
atm avi

monobactambeta lactamase 
inhibitor
targeted serious bacterial 
infections
i q4 2012
medi550 pandemic influenza virus 
vaccine
pandemic influenza prophylaxis i q2 2006
medi559 paediatric rsv vaccine rsv prophylaxis i q4 2008
medi3902 antipslpcrv pseudomonas i q3 2014
medi7510 rsv sfglase prevention of rsv disease in 
older adults
i q2 2014
medi8897

antirsv mabyte passive rsv prophylaxis i q2 2014
neuroscience
azd3241 myeloperoxidase inhibitor multiple system atrophy
5
ii q2 2012
azd3293

betasecretase inhibitor alzheimer’s disease ii q4 2014
azd5213 histamine3 receptor  
antagonist
tourette’s syndrome
neuropathic pain
ii q4 2013
azd8108 nmda antagonist suicidal ideation i q4 2014
medi1814 antiamyloid beta mab alzheimer’s disease i q2 2014
 partnered product
1
 fluid retention indication for tenapanor terminated in q2 2014
2
 medimmunesponsored study in collaboration with gsk
3
 medimmunesponsored study in collaboration with genentech
4
 development on hold pending further preclinical evaluation
5
 multiple system atrophy is now the lead indication for this molecule
199 astrazeneca annual report and form 20f information 2014
additional information additional information
lcm projects
compound mechanism area under investigation
date 
commenced 
phase 
estimated filing
us eu japan china
cardiovascular and metabolic diseases
brilintabrilique
1 
euclid adp receptor antagonist outcomes study in patients with 
peripheral artery disease
q4 2012 2017 2017 2017 2018 
brilintabrilique
1
 hestia adp receptor antagonist prevention of vasoocclusive crises 
in paediatric patients with sickle 
cell disease
q4 2014 2020 2020
brilintabrilique
1
 pegasus 
timi 54
adp receptor antagonist outcomes study in patients with 
prior mi
q4 2010 q2 2015 q2 2015 q4 2015 2017
brilintabrilique
1
 socrates adp receptor antagonist outcomes study in patients with 
stroke or tia
q1 2014 h1 2016 h1 2016 h2 2016 2017
brilintabrilique
1
 themis adp receptor antagonist outcomes study in patients with 
type 2 diabetes and cad but 
without a previous history of mi  
or stroke
q1 2014 2017 2017 2018 2018
bydureon dual chamber pen glp1 receptor agonist type 2 diabetes launched approved filed
bydureon exscel glp1 receptor agonist type 2 diabetes outcomes study q2 2010 2018 2018 2018
bydureon weekly suspension glp1 receptor agonist type 2 diabetes q1 2013 q4 2015 q4 2015
epanova strength omega3 free fatty acids outcomes study in statintreated 
patients at high cv risk with 
persistent hypertriglyceridaemia 
plus low hdl cholesterol
q4 2014 2020 2020 2020 2020
farxigaforxiga
2
  
declaretimi 58
sglt2 inhibitor type 2 diabetes outcomes study q2 2013 2020 2020
farxigaforxiga
2
 sglt2 inhibitor type 1 diabetes q4 2014 2018 2017 2018
kombiglyze xrkomboglyze
3
dpp4 inhibitormetformin fdc type 2 diabetes launched launched filed
onglyza savortimi 53 dpp4 inhibitor type 2 diabetes outcomes study q2 2010 filed launched 2015
saxagliptindapagliflozin fdc dpp4 inhibitor 
sglt2 inhibitor fdc
type 2 diabetes q2 2012 q1 2015
4
q2 2015
xigduo xrxigduo
5
sglt2 inhibitormetformin fdc type 2 diabetes launched launched 
oncology
caprelsa vegfregfr tyrosine kinase 
inhibitor with ret kinase activity
differentiated thyroid cancer q2 2013 h1 2016 h1 2016 h1 2016
faslodex falcon oestrogen receptor antagonist 1st line hormone receptor ve 
advanced breast cancer
q4 2012 h2 2016 h2 2016 h2 2016 h2 2016
respiratory inflammation and autoimmunity 
duaklir genuair lamalaba copd approved
symbicort sygma1 icslaba as needed use in mild asthma q4 2014 na 2018
symbicort
6
icslaba breath actuated inhaler asthma
copd
 
neuroscience
diprivan

sedative and anaesthetic conscious sedation na launched filed launched
gastrointestinal
entocort glucocorticoid steroid crohn’s diseaseulcerative colitis launched launched q3 2015 na
linaclotide

gcc receptor peptide agonist irritable bowel syndrome with 
constipation ibsc
na na na q4 2015
nexium proton pump inhibitor refractory reflux esophagitis filed 
nexium proton pump inhibitor stress ulcer prophylaxis 2017
nexium proton pump inhibitor paediatrics launched launched h2 2016
 partnered product 
1
 brilinta in the us brilique in rest of world
2 
farxiga in the us forxiga in rest of world
3 
kombiglyze xr in the us komboglyze in the eu
4  
submission made in us in december 2014 acceptance 
anticipated q1 2015
5 
xigduo xr in the us xigduo in the eu
6
 development of a new bai device is ongoing
discontinued projects between 1 january and 31 december 2014
nmelcm projects compound reason for discontinuation area under investigation
nme azd1208 safetyefficacy haematological malignancies
nme azd1979 safetyefficacy obesity
nme azd4721 safetyefficacy copd
nme azd5069 safetyefficacy asthma
nme azd6423 safetyefficacy suicidal ideation
nme azd8848

safetyefficacy asthma
nme medi8968

safetyefficacy copdhs
nme medi9287 economic avian influenza
lcm iressa impress safetyefficacy treatment beyond progression
 partnered product
development pipeline continued
200 astrazeneca annual report and form 20f information 2014 additional information
patent expiries
patent expiries for our key marketed products 
our patents are or may be challenged by third parties generic products may be launched ‘at risk’ and our patents may be revoked 
circumvented or found not to be infringed for more information please see risk from page 203 many of our products are subject to 
challenges by third parties details of material challenges by third parties can be found in note 27 to the financial statements from page 
182 the expiry dates shown below include any granted spcpte andor paediatric exclusivity periods in europe the exact spc situation 
may vary by country as different patent offices may grant spc at different rates a number of our products are subject to generic 
competition in one or more markets further information can be found in the geographical review from page 220
us
us patent expiry us revenue m
key marketed products new chemical entity patents expiry dates of other patents such as orange book 2014 2013 2012
atacand
1
2015 44 72 150
brilinta 2018 2019 2021 2030 146 73 19
bydureon 2016 2017 2018 2020 2021 2024 2025 2026 2028 374 131 37
byetta 2016 2017 2018 2020 199 152 74
crestor
2
2016 2018 2021 2022 2918 2912 3164
faslodex 2021 340 324 310
iressa 2017 – – –
kombiglyze xr 2023 2025 –
3
–
3
–
3
nexium 2015
4
2015 2016 2018 2020 1876 2123 2272
onglyza 2023 2028 481 265 237
pulmicort
5
2018 2019 211 224 233
selokentoprolxl 91 131 320
seroquel xr
6
2017 738 743 811
symbicort 2017 2018 2021 2023 2024 2026 2028 2029 1511 1233 1003
synagis 2015 2023 499 617 611
zoladex 2021 2022 26 23 24
china eu and japan
china patent expiry eu patent expiry
8
japan patent expiry
china eu and japan combined revenue m
7
key marketed products 2014 2013 2012
atacand
9
expired
9
151 200 409
patents
brilique 232 155 54
nce patents 2018 2019 2018 2024 2018 2019
nonnce patents 2021 2021 2021 2027
bydureon 59 17 –
nonnce patents 2020 2021 2025 2017 2020 2021 2022 2024 2026
10
2018 2021 2024 2025
byetta 105 46 –
nonnce patents 2020 2017 2018 2020 2021
10
2018 2020
crestor 1877 1864 1848
nce patent 2017 2017
nonnce patents 2020 2021 2020 2021 2023 
eklira genuair
11
12 – –
nce patent 2020 2025 2020
nonnce patents 2016 2022 2025 2027 2016 2022 2025 2027 2028 2016 2022 2025 2027
faslodex 295 272 268
nonnce patents 2021 2021 2026
iressa 459 489 472
nce patent 2016 2019
12
2018
kombiglyze xr –
3
 –
3
–
3
nce patent 2021 2026 –
nonnce patents 2025 2025
komboglyze –
3 
–
3
–
3
nce patent 2021 2026 –
nonnce patents 2025 2025
nexium 966 828 626
nce patent expired expired 2018
nonnce patents 2015 2018 2019 2018 2018 2019
onglyza 164 62 50
nce patent 2021 2024 –
nonnce patents 2025 2025
201 astrazeneca annual report and form 20f information 2014
additional information additional information
china patent expiry eu patent expiry
8
japan patent expiry
china eu and japan combined revenue m
7
key marketed products 2014 2013 2012
pulmicort
13
 564 481 469
nonnce patents 2018 2018 2018 
selokentoprolxl 428 400 373
nonnce patents expired expired expired
seroquel xr 306 381 465
nonnce patents 2017 2017
14
symbicort 1666 1634 1606
nonnce patents 2018 2018 2019 2017 2019 2020 
synagis 401 443 427
active entity patent 2015 2015 2015
nonnce patents – 2023 2023
zoladex 526 581 657
nonnce patents 2021 2021 2021 
1
 atacand hct 
2
  a settlement agreement permits watson laboratories inc and actavis inc together watson to begin selling its generic version of crestor and its rosuvastatin zinc product beginning 2 may 2016
3
 komboglyzekombiglyze xr revenue is included in the onglyza revenue figure
4
  licence agreements with teva and ranbaxy pharmaceuticals inc and other generic companies allow each to launch a generic version in the us from may 2014 subject to regulatory approval 
5
  a licence agreement with teva permits their ongoing sale in the us of a generic version from december 2009 the 2018 expiry relates to the flexhaler device while the 2019 expiry relates to the 
formulation in the flexhaler presentation and also to respules
6
  licence agreements with various generics companies allow launches of generic versions of seroquel xr in the us from 1 november 2016 or earlier upon certain circumstances subject to regulatory 
approval
7
 aggregate revenue for china the eu and japan
8
 expiry in major eu markets
9
 takeda retained rights
10
 there is eight years data exclusivity and two years market exclusivity for byetta and bydureon to 2016
11 
astrazeneca acquired the rights to eklira genuair effective 1 november 2014 2014 revenues reflected from 1 november 2014
12
 spc expires march 2019 there is eight years data exclusivity and two years market exclusivity for iressa in the eu to june 2019
13
 the 2018 expiry relates to the formulation in the turbuhaler presentation and also to respules
14
 rights licensed to astellas
patent expiries continued
202 astrazeneca annual report and form 20f information 2014 additional information
risk management embedded in 
business processes
we strive to ensure that sound risk 
management is embedded in 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 these are i 
earnings and cash flow ii return on 
investment and iii ethics this definition 
provides a clear statement by the board of 
its position on risk which enables the 
group in both quantitative and qualitative 
terms to judge the level of risk it is prepared 
to take so as to achieve its overall objectives 
annually the group develops a longterm 
business plan to support the delivery of its 
strategy which the board reviews to ensure 
that it conforms to its risk appetite our risk 
management approach is aligned to our 
strategy and business planning processes 
financial risks and opportunities identified 
through the business planning process are 
crosschecked and integrated into the 
overall risk management reporting line 
managers are accountable for identifying 
and managing risks and for delivering 
business objectives in accordance with  
the group’s risk appetite 
within each set function leadership  
teams discuss the risks the business  
faces annually these risks are mapped to 
astrazeneca’s risk ‘taxonomy’ providing a 
groupwide assessment that is shared with 
the board audit committee and set 
quarterly each set function identifies any 
changes to these risks its mitigation plans 
and new and emerging risks the quarterly 
updates are assimilated into a group risk 
report for the board audit committee  
and set supporting tools are in place to 
assist risk leaders and managers in this 
process and we continue to work on 
developing our risk management standards 
and guidelines we develop business 
continuity plans to address situations where 
specific risks have the potential to severely 
impact our business these plans include 
training and crisis simulation activities for 
business managers 
key responsibilities
internal audit services ia 
ia is an independent assurance and 
advisory function that reports and is 
accountable to the audit committee ia’s 
budget resources and audit programme 
are approved by the audit committee 
annually and the findings from its audit work 
are reported to and discussed at each 
audit committee meeting a core part  
of the audit work carried out by ia includes 
assessing how we are managing risk and 
reviewing the effectiveness of selected 
aspects of our risk control framework 
including the effectiveness of other 
assurance and compliance functions  
within the business 
global compliance
our global compliance function seeks to 
drive and embed a culture of ethics and 
integrity within our organisation 
our key compliance priorities include
  focusing our efforts on important 
compliance risk areas 
  communicating clear policies to 
employees 
  improving compliance behaviours through 
effective training and support 
  ensuring employees can raise concerns 
and that those concerns will be properly 
addressed 
  ensuring fair and objective investigations 
of possible policy breaches 
  monitoring compliance with policies 
  providing key stakeholders with 
assurance and effective reporting of 
material issues
in the strategy section on pages 10 to 31  
we provide an overview of the principal risks 
we face and our efforts to manage them  
in this section we describe in further detail 
our key risk management and assurance 
mechanisms and the principal risks and 
uncertainties we consider material to  
our business as they may significantly  
affect our financial condition results of 
operations andor reputation specific  
risks and uncertainties are also discussed  
in the strategic report from page 2  
where relevant 
managing risk
as a global innovationdriven 
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 and how these risks are 
managed based on an understanding of 
the potential strategic 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 priorities the material needs of our 
stakeholders and our values we monitor 
our business activities and external and 
internal environments for new emerging  
and changing risks to ensure that these  
are managed appropriately
the board believes that the processes and 
accountabilities that exist and are described 
below provide it with adequate information 
on the principal risks and uncertainties we 
face further information about these risks 
and uncertainties is set out in this section
risk
203 astrazeneca annual report and form 20f information 2014
additional information additional information
oversight and monitoring
the set is responsible for overseeing and 
monitoring the effectiveness of the risk 
management processes implemented  
by management the global compliance 
and finance functions together with ia 
support the set by advising on policy and 
standard setting monitoring and auditing 
communication and training as well as 
reporting on the adequacy of line 
management processes as they apply  
to risk management 
our compliance organisation is comprised 
of the global compliance function and 
various specialist compliance functions 
more information about global compliance 
and the code of conduct can be found in 
the corporate governance report from 
page 86 
management reporting and assurance
quarterly risk reports are provided to the 
set and the board among other things 
these reports summarise our current 
assessment of the principal risks facing the 
group including environmental social and 
governance risks senior management 
accountability and our proposed plans to 
address these risks to the extent possible
the audit committee comprises five 
nonexecutive directors it 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 
informing the board of any significant 
concerns about the conduct results or 
outcomes of internal audits and other 
compliance matters the audit committee 
receives regular reports from our external 
auditor and the following business functions
  ia independent assurance reports on the 
group’s risk management and control 
framework
  global compliance reports on key 
compliance risks compliance incidents 
and investigations including contact 
made by employees via azethics via our 
helplines
  financial control and compliance 
group reports on sarbanesoxley act 
compliance and the financial control 
framework
  management the grouplevel risk 
summary from the annual business 
planning process and reports on the 
performance management and 
monitoring processes key risks and 
opportunities analysis from the business 
plan quarterly group level risk reports 
and ad hoc comprehensive reviews  
of specific risks
for more information on the audit 
committee please see the audit committee 
report from page 96
principal risks and uncertainties
operating in the pharmaceutical sector 
carries various inherent risks and 
uncertainties that may affect our business 
in the remainder of this section we describe 
the principal risks and uncertainties that we 
consider material to our business in that 
they may have a significant effect on our 
financial condition results of operations and
or reputation 
these risks are not listed in any particular 
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’ and that include 
among other things the statements made  
in outlook in the chairman’s statement and 
future prospects in the financial review 
from page 5 and from page 81 respectively 
are based on reasonable assumptions 
however forwardlooking statements 
involve inherent risks and uncertainties such 
as those summarised below they relate to 
events that may occur in the future that may 
be influenced by factors beyond our control 
and that may have actual outcomes 
materially different from our expectations
these priorities are aligned to our strategy 
and reflect our commitment to provide 
oversight at all levels including risk 
management relating to external parties  
and antibriberyanticorruption ia and 
global compliance work closely together 
and separately provide assurance reporting 
to the audit committee through the  
group compliance council global 
compliance and ia work with various 
specialist compliance functions  
throughout our organisation to  
coordinate compliance activities
when a potential compliance breach  
is identified an internal investigation is 
undertaken by appropriate staff from  
our global compliance hr andor  
legal teams when appropriate external 
advisers are engaged to conduct andor 
advise on investigations should an 
investigation conclude that a significant 
breach has occurred management in 
consultation with our legal function will 
consider whether the group needs to 
disclose andor report the findings to a 
regulatory or governmental authority 
more information on ia and our overall risk 
management and control framework can be 
found in the corporate governance report 
from page 86 
management of risk
daytoday risk management is delegated 
from the board to the ceo and through the 
set to line managers set functions are 
accountable for establishing an appropriate 
line managementled process and for 
providing the resources for supporting 
effective risk management
line and project managers have primary 
responsibility within the context of their 
functional area for identifying and managing 
risk as well as for implementing appropriate 
controls and procedures to monitor 
effectiveness
risk continued
204 astrazeneca annual report and form 20f information 2014 product pipeline risks impact
failure to meet development targets
the development of any pharmaceutical product candidate is a complex 
risky and lengthy process involving significant financial rd and other 
resources which may fail at any stage of the process due to various 
factors these include failure to obtain the required regulatory or marketing 
approvals for the product candidate or its manufacturing facilities 
unfavourable clinical efficacy data safety concerns failure of rd to 
develop new product candidates failure to demonstrate adequate 
costeffective benefits to regulatory authorities andor payers and the 
emergence of competing products 
because our business model and strategy rely on the success of relatively 
few compounds the failure of any inline production may have a significant 
negative effect on our business or results of operations
production and release schedules for biologics may be more significantly 
impacted by regulatory processes than other products this is due to more 
complex and stringent regulation on the manufacturing of biologics and 
their supply chain
a succession of negative drug project results and a failure to reduce 
development timelines effectively or produce new products that achieve 
the expected commercial success could frustrate the achievement of 
development targets adversely affect the reputation of our rd 
capabilities and is likely to materially adversely affect our business and 
results of operations see also failure to achieve strategic priorities or to 
meet targets or expectations on page 217 
difficulties obtaining and maintaining regulatory approvals for new products 
we are subject to strict controls on the commercialisation processes for 
our pharmaceutical products including their development manufacture 
distribution and marketing safety efficacy and quality must be established 
before a drug can be marketed for a given indication the criteria for 
establishing safety efficacy and quality may vary by country or region and 
the submission of an application to regulatory authorities may or may not 
lead to the grant of marketing approval 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 countries approved 
products are also subject to regulations and a failure to comply can 
potentially result in losing regulatory approval to market our products 
regulations may require a company to conduct additional clinical trials after 
a drug’s approval which can result in increased costs labelling challenges 
or loss of regulatory approval
factors including advances in science and technology evolving regulatory 
science and different approaches to benefitrisk tolerance by regulatory 
authorities the general public and other third party public interest groups 
influence the initial approvability of new drugs existing marketed products 
are also subject to these same forces and new data and metaanalyses 
have the potential to drive changes in the approval status or labelling 
recent years have seen an increase in postmarketing regulatory 
requirements and commitments and an increased call for third party 
access to regulatory and clinical trial data packages for independent 
analysis and interpretation
politically motivated and unpredictable policy making by governments and 
regulators can adversely influence regulatory decision making often 
leading to severe delays in regulatory approval the predictability of the 
outcome and timing of review processes remains challenging due to 
evolving regulatory science competing regulatory priorities unpredictable 
policy making and downward pressure on regulatory authority resources
delays in regulatory reviews and approvals impact patient and market 
access in addition postapproval requirements result in increased  
costs and may impact the labelling and approval status of currently 
marketed products 
205 astrazeneca annual report and form 20f information 2014
additional information additional information
product pipeline risks continued impact
failure to obtain and enforce effective ip protection
our ability to obtain and enforce patents and other ip rights in relation to our 
products is an important element of our ability to protect our investment in 
rd and create longterm value for the business some countries in which 
we operate are still developing their ip laws or may even be limiting the 
applicability of these laws to pharmaceutical inventions adverse political 
perspectives on the desirability of strong ip protection for pharmaceuticals 
in certain emerging and even developed markets may limit our ability to 
obtain effective ip protection for our products as a result certain countries 
may seek to limit or deny effective ip 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 those products more 
information about protecting our ip is contained in the intellectual property 
section from page 68 information about the risk of patent litigation and the 
early loss of ip rights is contained in the expiry or loss of or limitations to  
ip rights risk on page 208
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 significantly affect our business including investment in large 
clinical studies the manufacture of prelaunch product stocks investment 
in marketing materials prelaunch sales force training and the timing of 
anticipated future revenue streams from new product sales launch dates 
are primarily driven by our development programmes and the demands  
of the regulatory authorities in the approvals process as well as pricing 
negotiations delays to anticipated launch dates may result from  
various factors including adverse findings in preclinical or clinical  
studies regulatory demands price negotiation competitor activity  
and technology transfer
significant delays to anticipated launch dates of new products could  
have a material adverse effect on our financial condition andor results of 
operations for example for the launch of products that are seasonal in 
nature delays in regulatory approvals or manufacturing difficulties may 
delay 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 delayed launch may lead to increased costs if for example 
marketing and sales efforts need to be rescheduled or performed for 
longer than expected
acquisitions and strategic alliances including licensing and collaborations may be unsuccessful
we seek 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  
enabling us to grow and strengthen the business the success of such 
arrangements is largely dependent on the technology and other ip rights 
we acquire and the resources efforts and skills of our partners also 
under many of our licensing arrangements and strategic collaborations  
we make milestone payments well in advance of the commercialisation  
of the products with no assurance that we will recoup these payments 
furthermore we experience strong competition from other pharmaceutical 
companies in respect of licensing arrangements strategic collaborations 
and acquisition targets and therefore we may be unsuccessful in 
implementing some of our intended projects 
we may also seek to acquire complementary businesses or enter into  
other strategic transactions 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 the implementation of longterm assets we may also 
experience difficulties in integrating geographically separated organisations 
systems and facilities and personnel with different organisational cultures 
if we fail to complete these types of collaborative projects in a timely 
manner on a costeffective basis or at all this may limit our ability to 
access a greater portfolio of products ip technology and shared expertise 
additionally disputes or difficulties in our relationship with our collaborators 
or partners may arise often due to conflicting priorities or conflicts of 
interest between parties which may erode or eliminate the benefits of  
these alliances 
the incurrence of significant debt or liabilities due to the integration of an 
acquired business could cause deterioration in our credit rating and result 
in increased borrowing costs and interest expense 
further if liabilities are uncovered in an acquired business an acquired 
business fails to perform in line with expectations or a strategic  
transaction does not deliver the results we intended then the group  
or our shareholders may suffer losses and may not have adequate 
remedies against the seller or third parties integration processes may also 
result in business disruption diversion of management resources the loss 
of key employees and other issues such as a failure to integrate it and 
other systems 
risk continued
206 astrazeneca annual report and form 20f information 2014 commercialisation and business execution risks impact
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 particularly 
important to replace lost sales following patent expiry we may ultimately be 
unable to achieve commercial success for any number of reasons these 
include difficulties in manufacturing sufficient quantities of the product 
candidate for development or commercialisation in a timely manner the 
impact of price control measures imposed by governments and healthcare 
authorities the outcome of negotiations with third party payers erosion of 
ip rights including infringement by third parties failure to show a 
differentiated product profile and changes in prescribing habits 
as a result we cannot be certain that compounds currently under 
development will achieve success and our ability to accurately assess 
prior to launch the eventual efficacy or safety of a new product once in 
broader clinical use can only be based on data available at that time which 
is inherently limited due to relatively short periods of product testing and 
relatively small clinical study patient samples 
the commercialisation of biologics is often more complex than for small 
molecule pharmaceutical products primarily due to differences in the 
mode of administration technical aspects of the product and rapidly 
changing distribution and reimbursement environments
our products are subject to competition by other products approved for 
the same or similar indication and the approval of a competitive product 
that is considered superior with or equivalent to one of our products may 
result in immediate and significant decreases in our sales
if a new product does not succeed as anticipated or its rate of sales growth 
is slower than anticipated there is a risk that we may be unable to fully 
recoup the costs incurred in launching it which could materially adversely 
affect our business or results of operations 
due to the complexity of the commercialisation process for biologics the 
methods of distributing and marketing biologics could materially adversely 
impact our revenues from the sales of products such as synagis and 
flumistfluenz
illegal trade in our products
the illegal trade in pharmaceutical products is widely recognised by 
industry nongovernmental organisations and governmental authorities to 
be increasing illegal trade includes counterfeiting theft and illegal diversion 
that is when our products are found in a market where we did not send 
them and where they may not be locally approved there is a risk to public 
health when illegally traded products enter the supply chain as well as 
associated financial risk regulators and the public expect us to help 
reduce opportunities for illegal trade in our products through securing the 
integrity of our supply chain surveillance investigation and supporting legal 
action against those found to be engaged in illegal trade
public loss of confidence in the integrity of pharmaceutical products  
as a result of illegal trade could materially adversely affect our reputation 
and financial performance in addition undue or misplaced concern about 
this issue may cause some patients to stop taking their medicines with 
consequential risks to their health authorities may take action financial  
or otherwise if they believe we are liable for breaches in our own  
supply chains
there is also a direct financial loss when counterfeit stolen andor illegally 
diverted products replace sales of genuine products or genuine products 
are recalled following discovery of counterfeit stolen andor illegally 
diverted products
207 astrazeneca annual report and form 20f information 2014
additional information additional information
commercialisation and business execution risks continued impact
developing our business in emerging markets
the development of our business in emerging markets is a critical factor in 
determining our future ability to sustain or increase our global product 
revenues this poses various challenges including more volatile economic 
conditions andor political environments competition from multinational 
and local companies with existing market presence the need to identify 
and to leverage appropriate opportunities for sales and marketing poor ip 
protection inadequate protection against crime including counterfeiting 
corruption and fraud inadequate infrastructure to address disease 
outbreaks such as the ebola virus the need to impose developed market 
compliance standards the need to meet a more diverse range of national 
regulatory clinical and manufacturing requirements inadvertent breaches 
of local and international law not being able to recruit appropriately skilled 
and experienced personnel identification of the most effective sales and 
marketing channels and route to market and interventions by national 
governments or regulators restricting market access andor introducing 
adverse price controls
the failure to exploit potential opportunities appropriately in emerging 
markets may materially adversely affect our reputation business or results 
of operations
expiry or loss of or limitations to ip rights
pharmaceutical products are only protected from being copied during the 
limited period of protection under patent rights andor related ip rights such 
as regulatory data protection or orphan drug status expiry or loss of 
these rights typically leads to the immediate launch of generic copies of the 
product in the country where the rights have expired or been lost see the 
patent expiries section on page 201 which contains a table of certain 
patent expiry dates for our key marketed products 
additionally the expiry or loss of patents covering other innovator 
companies’ products may also lead to increased competition for our own 
stillpatented products in the same product class due to the availability of 
generic products in that product class further there may be increased 
pricing pressure on our stillpatented products due to the lower prices of 
generic entrants
products under patent protection or within the period of regulatory data 
protection typically generate significantly higher revenues than those not 
protected by such rights our revenues financial condition and results of 
operations may be materially adversely affected upon expiry or early loss  
of our ip rights due to generic entrants into the market for the applicable 
product additionally the loss of patent rights covering major products  
of other pharmaceutical companies may materially adversely affect  
the growth of our stillpatented products in the same product class  
in that market
risk continued
208 astrazeneca annual report and form 20f information 2014 commercialisation and business execution risks continued impact
pressures resulting from generic competition
our products compete not only with other products approved for the  
same condition marketed by researchbased pharmaceutical companies 
but also with generic drugs marketed by drug manufacturers these 
competitors may invest more resources into 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 as the manufacturer does not 
have to recoup the significant cost of rd investment and market 
development the majority of our patented products including nexium 
crestor and seroquel xr are subject to pricing pressures due to 
competition from generic copies of these products and from generic forms 
of other drugs in the same product class for example generic forms of 
losecprilosec lipitor and seroquel ir 
as well as facing generic competition upon expiry or loss of ip rights we 
also face the risk that generic drug manufacturers seek to market generic 
versions of our products prior to expiries of our patents andor the 
regulatory exclusivity periods for example we are currently facing 
challenges in the us from numerous generic drug manufacturers regarding 
our patents for nexium and pulmicort respules two of our key products 
generic manufacturers may also take advantage of the failure of certain 
countries to properly enforce regulatory data protection and may launch 
generics during this protected period this is a particular risk in some 
emerging markets where appropriate patent protection may be difficult to 
obtain or enforce 
if challenges to our patents by generic drug manufacturers succeed and 
generic products are launched or generic products are launched ‘at risk’ 
on the expectation that challenges to our ip will be successful this may 
materially adversely affect our financial condition and results of operations 
in 2014 us sales for crestor and seroquel xr were 2918 million 2013 
2912 million and 738 million 2013 743 million respectively 
furthermore if limitations on the availability scope or enforceability of 
patent protection are implemented in jurisdictions in which we operate 
generic manufacturers in these countries may be increasingly able to 
introduce competing products to the market earlier than they would have 
been able to had more robust patent protection or regulatory data 
protection been available
effects of patent litigation in respect of ip rights
any of the ip rights protecting our products may be asserted or challenged 
in ip litigation initiated against or by external parties such ip rights may also 
be the subject of validity challenges in patent offices we expect our most 
valuable products to receive the greatest number of challenges despite 
our efforts to establish and defend robust patent protection for our 
products we may not succeed in protecting our patents from such litigation 
or other challenges
we also bear the risk that courts may decide that third parties do not 
infringe our ip rights this may result in astrazeneca losing exclusivity and
or erosion of revenues details of proceedings involving noninfringement 
allegations including socalled section 505b2 cases in the us can be 
found in note 27 to the financial statements from page 182 
where we assert our ip rights but are ultimately unsuccessful third  
parties may seek damages alleging for example that they have been 
inappropriately restrained from entering the market in such cases we bear 
the risk that we incur liabilities to those third parties
we also 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 infringement accusations may 
implicate for example our manufacturing processes product 
intermediates or use of research tools details of significant infringement 
claims against us by third parties enforcing ip rights can be found in note 
27 to the financial statements from page 182
if we are not successful in maintaining exclusive rights to market one or 
more of our major products particularly in the us where we achieve our 
highest revenue our revenue and margins could be materially adversely 
affected if we are ultimately unsuccessful in patent litigation we may incur 
liabilities to third parties for damages incurred after enforcing our ip rights
managing or litigating infringement disputes over socalled ‘freedom to 
operate’ can be costly we may be subject to injunctions against our 
products or processes and be liable for damages or royalties we may 
need to obtain costly licences these risks may be greater in relation to 
biologics and vaccines where patent infringement claims may relate to 
discovery or research tools and manufacturing methods andor biological 
materials while we seek to manage such risks by for example acquiring 
licences forgoing certain activities or uses or modifying processes to  
avoid infringement claims and permit commercialisation of our products 
such steps can entail significant cost and there is no guarantee that they 
will be successful
209 astrazeneca annual report and form 20f information 2014
additional information additional information
commercialisation and business execution risks continued impact
price controls and reductions
most of our key markets have experienced the implementation of various 
cost control or reimbursement mechanisms for pharmaceutical products
for example in the us prices are being depressed through restrictive 
reimbursement policies and cost control tools such as restricted lists  
and formularies which employ ‘generic first’ strategies andor require 
physicians to obtain prior approval for the use of a branded medicine where 
a generic alternative exists these mechanisms can be used by payers to 
limit the use of branded products and put pressure on manufacturers to 
reduce net prices in addition payers are shifting a greater proportion of the 
cost of branded medicines to the patient 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 
principally to encourage patients to use generic medicines 
in emerging markets governments are increasingly controlling pricing in the 
selfpay sector 
a summary of the principal aspects of price regulation and how pricing 
pressures are affecting our business in our most important markets is set 
out in pricing pressure in the marketplace section on page 17 and opposite 
in the following risk factor
due to these pricing 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 product 
investment these pressures including the increasingly restrictive 
reimbursement policies to which we are subject as well as potential 
legislation that expands the commercial importation of medicines into the 
us could materially adversely affect our business or results of operations 
we expect these pricing pressures will continue and may increase
risk continued
210 astrazeneca annual report and form 20f information 2014 commercialisation and business execution risks continued impact
economic regulatory and political pressures
we face continued economic regulatory and political pressures to limit or 
reduce the cost of our products 
in 2010 the us enacted the aca a comprehensive health reform law that 
expands insurance coverage implements delivery system reforms and 
places a renewed focus on cost and quality 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 fee implementation of several health system delivery 
reforms included in the aca has commenced and will continue until 2018 
the aca expands the patient population eligible for medicaid and provides 
new insurance coverage for individuals through state and federally
operated health insurance exchanges in general patients enrolled in the 
exchanges are subject to higher cost sharing obligations and may not have 
as robust access to prescription drugs as compared with patients enrolled 
in medicare part d or commercial plans there will be ongoing scrutiny of 
the us pharmaceutical industry that could result in further government 
intervention and financial constraint for more information please see 
regulatory requirements and pricing pressure in the marketplace section 
from page 16 and page 17  respectively
in the eu efforts by the ec to reduce inconsistencies and improve 
standards in the disparate national pricing and reimbursement systems met 
with little immediate success as member states guard their right to make 
healthcare budget decisions the industry continues to be exposed in 
europe to various ad hoc costcontainment measures and reference 
pricing mechanisms which impact prices there is a trend towards 
increasing transparency and comparison of prices among eu member 
states recent controversy regarding the high price of a drug marketed  
by one of our competitors for chronic hepatitis c may provoke further eu 
collaboration and may eventually lead to a change in the overall pricing and 
reimbursement landscape 
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 post launch hta evaluations are also increasingly 
being used to assess the clinical effect as well as costeffectiveness of 
products in a particular health system this comes as payers and 
policymakers attempt to increase efficiencies in the use and choice of 
pharmaceutical products 
further information regarding these pressures is contained in regulatory 
requirements and pricing pressure in the marketplace section from page 16 
and page 17  respectively
while new patients entering the us healthcare system due to the aca may 
lead to a slight increase in prescription drug utilisation it is too early to 
predict what the financial impact from newly covered individuals may be 
overall we expect that our financial and other costs resulting from the 
aca many of which we are unable to accurately estimate will far outweigh 
any increase in revenues 
the continued disparities in eu and us pricing systems could lead to 
marked price differentials between markets which by way of the 
implementation of existing or new reference pricing mechanisms  
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 
increased transparency of net prices and strengthened collaboration by 
governments may accelerate the development of further cost containment 
policies such as procurement or the comparison of net prices etc
211 astrazeneca annual report and form 20f information 2014
additional information additional information
commercialisation and business execution risks continued impact
abbreviated approval processes for biosimilars
while no application for a biosimilar has been made in relation to an 
astrazeneca biologic various regulatory authorities are implementing or 
considering abbreviated approval processes for biosimilars that would 
compete with patented biologics 
for example in 2010 the us enacted the biologics price competition and 
innovation act within the aca which contains general directives for 
biosimilar applications the fda issued draft guidance in february 2012 on 
implementing an abbreviated biosimilar approval pathway however 
significant questions remain including standards for designation of 
interchangeability and data collection requirements to support extrapolation 
of indications in 2012 the fda also implemented user fee programmes to 
support biosimilar product review and policy development in europe the 
ema published final guidelines on similar biologics containing mabs and in 
may 2012 the first mab biosimilar application was submitted with 
recommendation for approval made by the ema notably various 
jurisdictions have adopted either the ema guidelines or those set forth by 
the who to enable biosimilars to enter the market after discrete periods of 
data exclusivity
the extent to which biosimilars would differ from patented biologics on 
price is unclear however due to their complex nature it is uncertain 
whether biosimilars would have the same impact on patented biologics  
that generic products have had on patented small molecule products 
in addition it is uncertain when any such abbreviated approval processes 
may be fully realised particularly for more complex protein molecules  
such as mabs such processes may materially and adversely affect the 
future commercial prospects for patented biologics such as the ones that 
we produce 
increasing implementation and enforcement of more stringent antibribery and anticorruption legislation
there is an increasing global focus on the implementation and enforcement 
of antibribery and anticorruption legislation 
for example in the uk the bribery act 2010 came into force in 2011 it has 
extensive extraterritorial application and imposes organisational liability for 
any bribe paid by persons or entities associated with an organisation where 
the organisation failed to have adequate preventative procedures in place 
at the time of the offence in the us there has been significant enforcement 
activity in respect of the foreign corrupt practices act by the sec and doj 
against us companies and nonus companies listed in the us china and 
other countries are also enforcing their own antibribery laws more 
aggressively andor adopting tougher new measures 
we are 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 
various roles that are important to our operations such as in the capacity of 
a regulator partner or healthcare payer reimburser or prescriber among 
others details of these matters are included in note 27 to the financial 
statements from page 182
we devote significant resources to the considerable challenge of 
compliance with this legislation including in emerging and developing 
markets at considerable cost investigations from governmental agencies 
require additional resources despite taking significant measures to prevent 
breaches of applicable antibribery and anticorruption laws by our 
personnel and associated third parties breaches may result in the 
imposition of significant penalties such as fines the requirement to comply 
with monitoring or selfreporting obligations or debarment or exclusion 
from government sales or reimbursement programmes any of which could 
materially adversely affect our reputation business or results of operations
risk continued
212 astrazeneca annual report and form 20f information 2014 commercialisation and business execution risks continued impact
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 often based 
on current conditions and cannot always take into account any future 
changes to the pharmaceutical industry or our operations including new 
business developments or wage or price increases
if inappropriately managed the expected value of these initiatives could be 
lost through low employee engagement and hence productivity increased 
absence and attrition levels and industrial action 
our failure to successfully implement these planned cost reduction 
measures either through the successful conclusion of employee relations 
processes including consultation engagement talent management 
recruitment and retention or the possibility that these efforts do not 
generate the level of cost savings we anticipate could materially adversely 
affect our business or results of operations
failure to attract and retain key personnel and failure to successfully engage with our employees
we rely heavily on recruiting and retaining talented employees with a 
diverse range of skills and capabilities to meet our strategic objectives  
for example the success of our science activities depends largely on our 
ability to attract and retain sufficient numbers of highquality researchers 
and development specialists we face intense competition for well qualified 
individuals as the supply of people with specific skills and significant 
leadership potential or in specific geographic regions may be limited 
our ability to achieve high levels of employee engagement in the workforce 
and hence benefit from strong commitment and motivation is key to the 
successful delivery of our business objectives
the inability to attract and retain highly skilled personnel in particular those 
in key scientific and leadership positions and those in our talent pools may 
weaken our succession plans for critical positions in the medium term may 
materially adversely affect the implementation of our strategic objectives 
and could ultimately impact our business or results of operations 
failure to engage effectively with our employees could lead to business 
disruption in our daytoday operations reduce levels of productivity andor 
increase levels of voluntary turnover all of which could ultimately adversely 
impact our business or results of operations 
while we are committed to working on improving drivers of engagement 
such as increasing our employees’ understanding of our strategy and our 
ongoing efforts to reduce organisational complexity our efforts may be 
unsuccessful
failure of information technology and cybercrime
we are dependent on effective it systems these systems support key 
business functions such as our rd manufacturing supply chain and 
sales capabilities and are an important means of safeguarding and 
communicating data including critical or sensitive information the 
confidentiality and integrity of which we rely on the size and complexity of 
our it systems and those of our third party vendors including outsource 
providers with whom we contract have significantly increased over the 
past decade and makes such systems potentially vulnerable to service 
interruptions and security breaches from attacks by malicious third parties 
or from intentional or inadvertent actions by our employees or vendors
any significant disruption to these it systems including breaches of data 
security or cybersecurity or failure to integrate new and existing it systems 
could harm our reputation and materially adversely affect our financial 
condition or results of operations 
while we have invested heavily in the protection of our data and it we may 
be unable to prevent breakdowns or breaches in our systems that could 
result in disclosure of confidential information damage to our reputation 
regulatory penalties financial losses andor other costs
significant changes in the business footprint and the implementation  
of the new it strategy including the setting up of captive offshore global 
technology centres could lead to temporary loss of capability while the 
changes are being implemented
the inability to effectively backup and restore data could lead to 
permanent loss of data that could result in noncompliance with applicable 
laws and regulations
we and our vendors could be susceptible to third party attacks on our 
information security systems such attacks are of ever increasing levels  
of sophistication and are made by groups and individuals with a wide  
range of motives and expertise including criminal groups ‘hacktivists’  
and others from time to time we experience malicious intrusions and 
computer viruses
213 astrazeneca annual report and form 20f information 2014
additional information additional information
commercialisation and business execution risks continued impact
failure of outsourcing
we have outsourced various business critical operations to third party 
providers this includes certain rd processes it systems hr and 
finance and accounting services
the failure of outsource providers to deliver timely services and to the 
required level of quality and the failure of outsource providers to cooperate 
with each other could materially adversely affect our financial condition or 
results of operations in addition such failures could adversely impact our 
ability to meet business targets maintain a good reputation within the 
industry and with stakeholders and result in noncompliance with 
applicable laws and regulations
a failure to successfully manage and implement the integration of it 
infrastructure services provided by our outsource providers could create 
disruption which could materially adversely affect our business or results  
of operations 
in addition failure to manage outsourcing or insourcing transition 
processes may disrupt our business for instance as we transition 
services that previously were outsourced to our service centre in chennai 
india incumbent outsource providers may cease to continue to provide 
the same level of resources and quality of service
supply chain and delivery risks impact
manufacturing biologics
manufacturing biologics especially in large quantities is 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
final market release of a biologic depends on a number of inprocess 
manufacturing and supply chain parameters to ensure the product 
conforms with its safety identity and strength requirements and meets  
its quality and purity characteristics 
biologics production facilities especially for drug substance manufacture 
are very specialised and can take years to develop and bring on line as 
licensed facilities predicting demand for certain classes of biologics 
especially prior to launch can be challenging we expect that external 
capacity for biologics drug substance production will remain constrained 
for the next several years and accordingly may not be readily available for 
supplementary production in the event that we experience unforeseen 
need for such capacity
slight variations in any part of the manufacturing process or  
components may lead to a product that does not meet its stringent  
design specifications failure to meet these specifications may lead  
to recalls spoilage drug product shortages regulatory action andor 
reputational harm
risk continued
214 astrazeneca annual report and form 20f information 2014 supply chain and delivery risks continued impact
difficulties and delays in the manufacturing distribution and sale of our products
we may experience difficulties and delays in manufacturing our products 
such as 
  supply chain disruptions including those due to natural or manmade 
disasters at one of our facilities or at a critical supplier or vendor
  delays related to the construction of new facilities or the expansion of 
existing facilities including those intended to support future demand for 
our products
  inability to supply products due to a product quality failure or regulatory 
agency compliance action such as licence withdrawal product recall or 
product seizure
  other manufacturing or distribution problems including changes in 
manufacturing production sites limits to manufacturing capacity due to 
regulatory requirements changes in the types of products produced or 
physical limitations or other business interruptions that could impact 
continuous supply
manufacturing distribution and sales difficulties may result in product 
shortages and significant delays which may lead to lost sales and 
materially adversely affect our business financial condition or results  
of operations
reliance on third party goods and services
we increasingly rely on third parties for the timely supply of goods such as 
raw materials for example the api in some of our medicines equipment 
formulated drugs and packaging and services all of which are key to our 
operations many of these goods are difficult to substitute in a timely 
manner or at all
unexpected events andor events beyond our control could result in the 
failure of the supply of goods and services for example suppliers of key 
goods may cease to trade in addition we may experience limited supply of 
biological materials such as cells animal products or byproducts 
furthermore government regulations could result in restricted access to 
use or transport of such materials 
third party supply failure could lead to significant delays andor difficulties 
in obtaining goods and services on commercially acceptable terms this 
may materially adversely affect our business financial condition or results  
of operations 
loss of access to sufficient sources of key goods and biological materials 
or services may interrupt or prevent planned research activities andor 
increase our costs further information is contained in working with 
suppliers in manufacturing and supply from page 57 
legal regulatory and compliance risks impact
adverse outcome of litigation andor governmental investigations
we may be subject to various product liability consumer commercial 
antitrust environmental employment or tax litigation or other legal 
proceedings and governmental investigations litigation particularly in the 
us is inherently unpredictable and unexpectedly high awards for damages 
can result from an adverse verdict in many cases plaintiffs may claim 
compensatory punitive and statutory damages in extremely high amounts 
in particular 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 governmental 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 which have resulted in 
substantial expense and other significant consequences note 27 to the 
financial statements from page 182 describes the material legal 
proceedings in which we are currently involved
investigations for example under the foreign corrupt practices act or 
federal or state false claims acts described in further detail in note 27 to 
the financial statements from page 182 or legal proceedings regardless 
of their outcome could be costly divert management attention or damage 
our reputation and demand for our products unfavourable resolution of 
current and similar future proceedings against us could subject us to 
criminal liability fines penalties or other monetary or nonmonetary 
remedies require us to make significant provisions in our accounts relating 
to legal proceedings and could materially adversely affect our business or 
results of operations
215 astrazeneca annual report and form 20f information 2014
additional information additional information
legal regulatory and compliance risks continued impact
substantial product liability claims
pharmaceutical 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 materially adversely affect our 
financial condition or results of operations particularly where such 
circumstances are not covered by insurance for more information see the 
limited third party insurance coverage risk on page 219
failure to adhere to applicable laws rules and regulations
any failure to comply with applicable laws rules and regulations may result 
in civil andor criminal legal proceedings being filed against us or in us 
becoming subject to regulatory sanctions 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 our contractors or external partners details of 
product liability claims against us can be found in note 27 to the financial 
statements from page 182
failure to comply with applicable laws including ongoing control and 
regulation could materially adversely affect our business or results of 
operations for example once a product has been approved for marketing 
by the regulatory authorities it is subject to continuing control and 
regulation such as the manner of its manufacture distribution marketing 
and safety surveillance for example if regulatory issues concerning 
compliance with current good manufacturing practice or safety monitoring 
regulations for pharmaceutical products often referred to as 
pharmacovigilance arise this could lead to loss of product approvals 
product recalls and seizures and interruption of production which could 
create product shortages and delays in new product approvals and 
negatively impact patient access and our reputation
failure to adhere to applicable laws rules and regulations relating to anticompetitive behaviour
any failure to comply with laws rules and regulations relating  
to anticompetitive behaviour may expose us to regulatory sanctions  
andor lawsuits from governmental authorities and private  
nongovernmental entities 
certain of our commercial arrangements with generics companies  
which have sought to settle patent challenges on terms acceptable  
to both innovator and generics manufacturer may be subject to  
challenge by competition authorities
where a government authority investigates our adherence to competition 
laws or we become subject to private party lawsuits for example the us 
nexium settlement antitrust litigation described in more detail in note 27 to 
the financial statements from page 182 this may result in inspections of 
our sites or requests for documents and other information competition 
investigations or legal proceedings could be costly divert management 
attention or damage our reputation 
unfavourable resolution of such challenges investigations or legal 
proceedings against us could require us to change our commercial 
practice and could subject us to fines and penalties third party damages 
actions and other sanctions these could materially adversely affect our 
business or results of operations
environmental and occupational health and safety liabilities
we have environmental andor occupational health and safetyrelated 
liabilities at some currently and formerly owned leased and third party 
sites the most significant of which are detailed in note 27 to the financial 
statements from page 182
while we carefully manage these liabilities if a significant compliance issue 
environmental occupational health or safety incident or legal requirement 
for which we are responsible were to arise this could result in us being 
responsible for compensation fines andor remediation costs in some 
circumstances such liability could materially adversely affect our business 
or 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 for example 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 safetyrelated claims
risk continued
216 astrazeneca annual report and form 20f information 2014 legal regulatory and compliance risks continued impact
misuse of social media platforms and new technology
we increasingly use the internet social media mobile applications and 
other forms of new technology to communicate internally and externally 
the accessibility and instantaneous nature of interactions with such media 
may facilitate or exacerbate the risk of data leakages from within 
astrazeneca or false or misleading statements being made about 
astrazeneca which may damage our reputation as existing social media 
platforms expand and evolve and new social media platforms emerge it 
becomes increasingly challenging to identify new points of entry and to put 
structures in place to secure and protect information
inappropriate use of certain media vehicles could lead to the unauthorised 
or unintentional public disclosure of sensitive information such as 
personally identifiable information on employees healthcare professionals 
or patients for example those enrolled in our clinical trials which may 
damage our reputation adversely affect our business or results of 
operations and expose us to legal risks as well as additional legal 
obligations similarly the involuntary public disclosure of commercially 
sensitive information such as trade secrets through external media 
channels or an information loss could adversely affect our business or 
results of operations in addition negative posts or comments on social 
media websites about us or for example the safety of our products could 
harm our reputation
economic and financial risks impact
failure to achieve strategic priorities or to meet targets or expectations
we may from time to time communicate our business strategy or our 
targets or expectations regarding our future financial or other performance 
for example the expectations described in future prospects in the 
financial review on page 81 which we communicated to investors at  
our strategy update and our investor day in may and november 2014 
respectively all such statements are of a forwardlooking nature and are 
based on assumptions and judgements we make all of which are subject 
to significant inherent risks and uncertainties including risks and 
uncertainties that we are unaware of andor that are beyond our control
any failure to successfully implement our business strategy may frustrate 
the achievement of our financial or other targets or expectations and in 
turn materially damage our brand and materially adversely affect our 
business financial position or results of operations
there can be no guarantee that our financial targets or expectations will 
materialise on the expected timeline or at all actual results may deviate 
materially and adversely from any such target or expectation including if 
one or more of the assumptions or judgements underlying any such target 
or expectation proves to be incorrect in whole or in part
217 astrazeneca annual report and form 20f information 2014
additional information additional information
economic and financial risks continued impact
adverse impact of a sustained economic downturn
a variety of significant risks may arise from a sustained global economic 
downturn 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 face value of the debt 
in addition our customers may cease to trade which may result in losses 
from writing off debts or the sustained economic downturn may 
unfavourably affect the spending patterns of the consumers of our 
products 
we are highly dependent on being able to access a sustainable flow of 
liquid funds due to the high fixed costs of operating our business and the 
long and uncertain development cycles of our products in a sustained 
economic downturn financial institutions with whom we deal may cease to 
trade and there can be no guarantee that we will be able to access monies 
owed to us without a protracted expensive and uncertain process if at all 
more than 95 of our cash investments are managed centrally and are 
invested in collateralised bank deposits or aaa credit rated institutional 
money market funds money market funds are backed by institutions in the 
us and the eu which in turn invest in other funds including sovereign 
funds this means our credit exposure is a mix of us and eu sovereign 
default risk and financial institution default risk
while we have adopted cash management and treasury policies to 
manage this risk see the financial risk management policies section on 
page 81 we cannot be certain that these will be as effective as they are 
intended to be in particular in the event of a global liquidity crisis in 
addition open positions where we are owed money and investments we 
have made in financial institutions or money market funds cannot be 
guaranteed to be recoverable 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 andor 
sustained economic downturn this may for instance be the case in the 
event of any default by the group on its debt obligations which may 
materially adversely affect our ability to secure debt funding in the future  
or our financial condition in general further information on debt funding 
arrangements is contained in the financial risk management policies 
section on page 81
political and socioeconomic conditions
we operate in over 100 countries around the world some of which may be 
subject to political and social instability there may be disruption to our 
business if there is instability in a particular geographic region including as 
a result of war terrorism riot unstable governments civil insurrection or 
social unrest for instance our operational risks in ukraine have increased 
due to growing political and economic uncertainty in the region 
deterioration of or failure to improve socioeconomic conditions and 
situations andor resulting events depending on their severity could 
adversely affect our supply andor distribution chain in the affected 
countries and the ability of customers or ultimate payers to purchase our 
medicines this could adversely affect our business or results of 
operations broader economic developments such as potential 
international sanctions and global oil price developments could exacerbate 
this effect in the ukrainian and russian markets 
fluctuations in exchange rates
as a global business currency fluctuations can significantly affect our 
results of operations which are reported in us dollars approximately 40 
of our global 2014 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 have a growing 
exposure to emerging market currencies some of which are subject to 
exchange controls and these currencies such as that of venezuela may 
be subject to material devaluations against the us dollar major 
components of our cost base are located in the uk and sweden where an 
aggregate of approximately 21 of our employees are based
movements in the exchange rates used to translate foreign currencies into 
us dollars may materially adversely affect our financial condition or 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 financial results of such subsidiaries could be affected by 
currency fluctuations arising between the transaction dates and the 
settlement dates for these transactions in addition there are foreign 
exchange differences arising on the translation of equity investments in 
subsidiaries 
risk continued
218 astrazeneca annual report and form 20f information 2014 economic and financial risks continued impact
limited third party insurance coverage
in recent years the costs associated with product liability litigation  
have increased the cost of and narrowed the coverage afforded by 
pharmaceutical companies’ product liability insurance 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 any material 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 for example 
product liability litigation cases relating to crestor and nexium in the us are 
not covered by third party product liability insurance see note 27 to the 
financial statements from page 182 for details
if we are found to have a financial liability due to product liability or other 
litigation in respect of which we do not have insurance coverage or if an 
insurer’s denial of coverage is ultimately upheld this could materially 
adversely affect our business or results of operations 
for more information please see the substantial product liability claims  
risk on page 216
taxation
the integrated nature of our worldwide operations can produce conflicting 
claims from revenue authorities as to the profits to be taxed in individual 
countries the majority of the jurisdictions in which we operate have double 
tax treaties with other foreign jurisdictions which provide a framework 
for mitigating the incidence of double taxation on our revenues and 
capital gains
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
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 materially adversely affect our 
business or 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 81 for tax risk management policies and note 27 to the financial 
statements on page 187 for details of current tax disputes
pensions
our pension obligations are backed by assets invested across the broad 
investment market our most significant obligations relate to the uk 
pension fund
sustained falls in these asset values will strain pension fund solvency levels 
which may result in requirements for additional cash restricting cash 
available for strategic business growth similarly if the liabilities increase 
due to a sustained low interest rate environment this will reduce pension 
fund solvency ratios the likely increase in the ias 19 accounting deficit 
generated by any of these factors may cause the credit rating agencies to 
review our credit rating with the potential to negatively affect our ability to 
raise debt see note 20 to the financial statements from page 162 for 
further details of the group’s pension obligations
219 astrazeneca annual report and form 20f information 2014
additional information additional information
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
our financial performance
2014 2013 2012
sales
m
actual
growth 

cer
growth

sales
m
actual
growth 

cer 
growth

sales
m
us 10120 4 4 9691 9 9 10655
europe 6638 – 1 6658 7 9 7143
japan 2227 10 3 2485 14 4 2904
canada 590 7 1 637 42 40 1090
other established row 693 19 13 851 22 18 1086
emerging markets 5827 8 12 5389 6 8 5095
total 26095 1 3 25711 8 6 27973
cardiovascular and metabolic diseases
world us europe established row emerging markets prior year
2014
sales
m
actual
growth 

cer 
growth

sales
m
actual
growth 

sales
m
actual
growth 

cer 
growth

sales
m
actual
growth 

cer 
growth

sales
m
actual
growth 

cer 
growth

world
sales
m
crestor 5512 2 1 2918 – 1200 2 3 667 17 10 727 7 11 5622
selokentoprolxl 758 1 4 91 31 124 5 4 19 21 13 524 13 17 750
onglyzakombiglyze xr 
komboglyze
820 117 119 481 82 155 177 175 59 195 210 125 238 251 378
atacand 501 18 16 44 39 169 25 26 43 39 35 245 1 5 611
brilintabrilique 476 68 70 146 100 231 42 40 33 94 106 66 120 133 283
byetta 327 59 59 199 31 81 125 119 27 145 164 20 186 200 206
bydureon 440 191 191 374 185 57 235 235 5 nm nm 4 100 100 151
plendil 249 4 4 – – 19 10 10 9 10 10 221 3 3 260
tenormin 161 18 15 8 47 48 6 6 54 30 23 51 6 4 197
others 558 50 52 190 280 199 14 14 35 40 48 134 9 12 372
total 9802 11 12 4451 17 2283 9 8 951 11 3 2117 13 17 8830
world us europe established row emerging markets prior year
2013
sales
m
actual
growth 

cer 
growth

sales
m
actual
growth 

sales
m
actual
growth 

cer 
growth

sales
m
actual
growth 

cer 
growth

sales
m
actual
growth 

cer 
growth

world
sales
m
crestor 5622 10 8 2912 8 1225 – 3 807 36 27 678 15 17 6253
atacand 611 39 39 72 52 225 51 52 71 50 49 243 5 1 1009
selokentoprolxl 750 18 18 131 59 130 2 5 24 20 7 465 7 8 918
onglyzakombiglyze xr 
komboglyze 378 17 17 265 12 56 12 12 20 54 54 37 61 61 323
plendil 260 3 2 – 100 21 13 17 10 17 17 229 8 7 252
tenormin 197 14 7 15 50 51 4 6 77 27 13 54 10 7 229
brilintabrilique 283 218 216 73 284 163 186 179 17 nm nm 30 200 210 89
byetta 206 178 181 152 105 36 nm nm 11 nm nm 7 nm nm 74
bydureon 151 308 308 131 254 17 nm nm 1 nm nm 2 nm nm 37
others 372 7 7 50 100 174 4 1 25 24 15 123 1 2 347
total 8830 7 6 3801 6 2098 4 6 1063 34 25 1868 9 11 9531
220 astrazeneca annual report and form 20f information 2014 oncology
world us europe established row emerging markets prior year
2014
sales
m
actual
growth 

cer 
growth

sales
m
actual
growth 

sales
m
actual
growth 

cer 
growth

sales
m
actual
growth 

cer 
growth

sales
m
actual
growth 

cer 
growth

world
sales
m
zoladex 924 7 4 26 13 226 10 12 322 13 6 350 – 4 996
faslodex 720 6 7 340 5 245 11 10 59 5 3 76 3 14 681
iressa 623 4 1 – – 166 6 7 177 12 4 280 4 6 647
arimidex 298 15 12 15 150 76 18 19 108 30 24 99 1 5 351
casodex 320 15 10 5 – 42 21 21 169 25 18 104 12 14 376
others 142 – 4 25 – 33 14 14 48 20 13 36 29 36 142
total 3027 5 2 411 7 788 4 6 883 18 11 945 4 8 3193
world us europe established row emerging markets prior year
2013
sales
m
actual
growth 

cer 
growth

sales
m
actual
growth 

sales
m
actual
growth 

cer 
growth

sales
m
actual
growth 

cer 
growth

sales
m
actual
growth 

cer 
growth

world
sales
m
zoladex 996 9 – 23 4 252 7 8 372 17 4 349 – 10 1093
faslodex 681 4 6 324 5 221 1 2 62 – 21 74 17 29 654
iressa 647 6 11 – – 177 14 11 202 9 9 268 15 14 611
arimidex 351 35 30 6 71 93 33 34 154 45 35 98 7 6 543
casodex 376 17 7 5 267 53 12 13 225 25 10 93 3 4 454
others 142 5 15 25 – 29 53 53 60 6 14 28 4 4 134
total 3193 9 2 383 2 825 4 6 1075 22 7 910 4 9 3489
respiratory inflammation and autoimmunity 
world us europe established row emerging markets prior year
2014
sales
m
actual
growth 

cer 
growth

sales
m
actual
growth 

sales
m
actual
growth 

cer 
growth

sales
m
actual
growth 

cer 
growth

sales
m
actual
growth 

cer 
growth

world
sales
m
symbicort 3801 9 10 1511 23 1462 3 4 458 8 17 370 14 22 3483
pulmicort 946 9 11 211 6 162 5 6 97 13 6 476 32 35 867
others 316 3 2 26 55 123 7 7 27 18 15 140 16 19 327
total 5063 8 10 1748 15 1747 2 4 582 2 11 986 22 27 4677
world us europe established row emerging markets prior year
2013
sales
m
actual
growth 

cer 
growth

sales
m
actual
growth 

sales
m
actual
growth 

cer 
growth

sales
m
actual
growth 

cer 
growth

sales
m
actual
growth 

cer 
growth

world
sales
m
symbicort 3483 9 10 1233 23 1502 3 1 423 5 7 325 15 17 3194
pulmicort 867 – 1 224 4 171 10 13 112 12 2 360 14 13 866
others 327 8 8 58 11 115 11 13 33 20 15 121 – 1 355
total 4677 6 7 1515 16 1788 – 2 568 7 4 806 12 13 4415
infection neuroscience and gastrointestinal 
infection
world us europe established row emerging markets prior year
2014
sales
m
actual
growth 

cer 
growth

sales
m
actual
growth 

sales
m
actual
growth 

cer 
growth

sales
m
actual
growth 

cer 
growth

sales
m
actual
growth 

cer 
growth

world
sales
m
synagis 900 15 15 499 19 401 9 9 – – – – – – 1060
merremmeronem 253 14 10 6 45 32 35 35 4 20 20 211 7 3 293
flumistfluenz 295 20 20 218 10 70 67 64 7 75 100 – – – 245
others 78 13 10 41 27 5 – 20 9 31 8 23 64 50 89
total 1526 10 9 764 13 508 6 6 20 9 9 234 4 – 1687
world us europe established row emerging markets prior year
2013
sales
m
actual
growth 

cer 
growth

sales
m
actual
growth 

sales
m
actual
growth 

cer 
growth

sales
m
actual
growth 

cer 
growth

sales
m
actual
growth 

cer 
growth

world
sales
m
synagis 1060 2 2 617 1 443 4 4 – – – – – – 1038
merremmeronem 293 26 24 11 71 49 41 42 5 72 72 228 11 8 396
flumistfluenz 245 35 35 199 14 42 nm nm 4 33 33 – 100 100 181
others 89 6 5 55 5 7 38 63 13 18 55 14 11 17 100
total 1687 1 1 882 – 541 3 3 22 31 19 242 12 9 1715
221 astrazeneca annual report and form 20f information 2014
additional information additional information
geographical review continued
neuroscience
world us europe established row emerging markets prior year
2014
sales
m
actual
growth 

cer 
growth

sales
m
actual
growth 

sales
m
actual
growth 

cer 
growth

sales
m
actual
growth 

cer 
growth

sales
m
actual
growth 

cer 
growth

world
sales
m
seroquel xr 1224 9 8 738 1 343 18 18 44 39 35 99 7 – 1337
seroquel ir 178 48 46 72 nm 89 15 16 36 66 63 125 17 13 345
local anaesthetics 488 4 – – – 197 4 5 168 8 1 123 1 9 510
vimovo 96 5 9 10 50 33 3 3 23 15 25 30 58 63 91
others 420 7 4 25 24 110 4 5 84 14 7 201 3 1 452
total 2406 12 10 701 10 772 12 12 355 26 20 578 5 1 2735
world us europe established row emerging markets prior year
2013
sales
m
actual
growth 

cer 
growth

sales
m
actual
growth 

sales
m
actual
growth 

cer 
growth

sales
m
actual
growth 

cer 
growth

sales
m
actual
growth 

cer 
growth

world
sales
m
seroquel xr 1337 11 12 743 8 416 17 19 71 27 25 107 6 12 1509
seroquel ir 345 73 72 17 nm 105 55 57 106 48 40 151 6 3 1294
local anaesthetics 510 6 2 – – 206 3 5 182 12 1 122 – 2 540
vimovo 91 40 42 20 20 32 45 41 20 43 50 19 375 400 65
others 452 12 9 33 18 113 23 25 97 28 16 209 1 3 515
total 2735 30 29 779 50 872 22 24 476 27 19 608 3 6 3923
gastrointestinal 
world us europe established row emerging markets prior year
2014
sales
m
actual
growth 

cer 
growth

sales
m
actual
growth 

sales
m
actual
growth 

cer 
growth

sales
m
actual
growth 

cer 
growth

sales
m
actual
growth 

cer 
growth

world
sales
m
nexium 3655 6 4 1876 12 368 2 2 606 2 9 805 2 5 3872
losecprilosec 422 13 11 28 7 129 2 2 106 36 30 159 1 1 486
others 194 16 16 141 21 43 – – 7 – – 3 – 33 231
total 4271 7 5 2045 12 540 1 1 719 7 1 967 1 5 4589
world us europe established row emerging markets prior year
2013
sales
m
actual
growth 

cer 
growth

sales
m
actual
growth 

sales
m
actual
growth 

cer 
growth

sales
m
actual
growth 

cer 
growth

sales
m
actual
growth 

cer 
growth

world
sales
m
nexium 3872 2 – 2123 7 360 19 21 597 25 41 792 6 8 3944
losecprilosec 486 32 28 30 – 131 31 33 165 48 39 160 8 9 710
others 231 16 16 178 23 43 2 5 7 – – 3 – – 198
total 4589 5 3 2331 5 534 22 24 769 4 9 955 3 5 4852
222 astrazeneca annual report and form 20f information 2014 2014 mandated biennial price cut strong 
demand in japan continued for nexium 
and crestor  with sales increasing to 
860 million 2013 815 million 2012 
665 million
  emerging markets sales increased by 
12 to 5827 million 2013 5389 million 
2012 5095 million with sales growth in 
china of 22 volume growth on brilinta 
our diabetes and respiratory franchises 
nexium and crestor  was partially offset 
by pricing pressure predominantly in 
china and asia pacific
2013 in brief
  astrazeneca was the second largest 
prescriptionbased pharmaceutical 
company in the us with a 53 market 
share of us pharmaceuticals by sales 
value
  astrazeneca was the ninth largest 
prescriptionbased pharmaceutical 
company in europe with a 29 market 
share of sales by value
  in the us sales were down 9 to 
9691 million 2012 10655 million 
201 1 13426 million loss of exclusivity 
on seroquel ir in march 2012 as well as 
the impact of generic competition notably 
on crestor and toprolxl was only 
partially offset by strong performance 
across our growth platforms including 
brilinta symbicort and our diabetes 
franchise which increased by 225 million 
or 62 in 2013 our diabetes franchise 
included a full calendar year of revenue for 
bydureon byetta and symlin 
  sales in europe were down 9 to 
6658 million 2012 7  143 million 201 1 
9224 million key drivers of the decline 
were the ongoing volume erosion on 
atacand seroquel ir nexium arimidex 
and meronem following entry of generic 
competition and the negative price and 
volume impacts primarily related to 
government interventions seroquel xr 
faced a difficult year with loss of market 
share lower pricing and generic entries 
these challenges were only partially offset 
by our growth platforms including brilique 
growth and the expansion of our diabetes 
offering through the amylin franchise as 
well as strong demand for fluenz 
particularly in the uk
  established rest of world sales were 
down 10 canada continued to be 
negatively impacted by generic erosion on 
crestor and nexium with total sales down 
40 australian sales were also down as 
crestor faced competition from generics 
these trends were partially offset by 
growth in japan with sales up 4 to 
2485 million due to strong demand for 
nexium following the lifting of restrictions 
on length of prescriptions in october 2012
  emerging markets sales increased by 8 
to 5389 million 2012 5095 million 
with sales growth in china of 19
for more information about our products 
please see the therapy area review  
from page 32 details of material legal 
proceedings can be found in note 27 to  
the financial statements from page 182 and 
details of relevant risks are set out in the risk 
section from page 203 for information on 
astrazeneca’s market definitions please  
see the market definitions table on page 239 
sales figures in this geographical review are 
with reference to the customers’ location
us
astrazeneca is the third largest prescription
based pharmaceutical company in the us 
with a 52 market share of us 
pharmaceuticals by sales value
sales in the us increased by 4 to 
10 120 million 2013 9691 million 2012 
10655 million driven by an increase in 
diabetes franchise sales aided by the 
acquisition of bms’s 50 interest in the 
diabetes alliance as well as strong 
performance across our growth platforms 
including symbicort and brilinta offset by 
the continued impact of generic competition 
and lower synagis sales due to new 
guidelines issued by the american academy 
of pediatrics committee on infectious 
disease sales from our diabetes franchise 
increased by 644 million or 109 to 
1234 million
brilinta sales of 146 million increased 100 
in 2014 brilinta continued its momentum  
in the us becoming the largest selling 
branded oral antiplatelet oap in us 
hospital purchase volumes in september 
2014 and hospital discharge share for acs 
including both stelevation and nsteacs 
patients in the first half of 2014 brilinta’s 
newtobrand prescription share increased 
by 20 percentage points over 2013 to 82 
in december 2014 and brilinta achieved  
us branded leadership in oap for the first 
time during the fourth quarter and in the 
december 2014 exit weekly share brilinta 
sales volume drivers included the closure  
in august 2014 of the plato investigation 
by the doj and gaining preference over 
clopidogrel in the american heart 
association and american college of 
cardiology 2014 updated guidelines for the 
management of patients with nsteacs 
growth rates in this geographical  
review are expressed at cer unless 
otherwise stated
2014 in brief
  astrazeneca is the third largest 
prescriptionbased pharmaceutical 
company in the us with a 52 market 
share of us pharmaceuticals by sales 
value
  astrazeneca is the tenth largest 
prescriptionbased pharmaceutical 
company in europe with a 27 market 
share of sales by value
  in the us sales increased by 4 to 
10 120 million 2013 9691 million 2012 
10655 million driven by an increase in 
diabetes franchise sales aided by the 
acquisition of bms’s 50 interest in the 
diabetes alliance as well as strong 
performance across our growth platforms 
including symbicort and brilinta offset by 
the declines in revenue from nexium 
seroquel ir and synagis sales from our 
diabetes franchise increased by 
644 million or 109 to 1234 million
  sales in europe decreased by 1 to 
6638 million 2013 6658 million 2012 
7  143 million key drivers of the decline 
were the ongoing volume erosion on 
atacand and seroquel xr following 
generic entry and the negative price and 
volume impacts primarily related to 
government pricing interventions crestor 
volumes declined 3 due to increased 
pressure from generic statins in a number 
of markets symbicort sales decreased to 
1462 million 2013 1502 million 2012 
1465 million due to pricing pressure 
and the impact of symbicort analogues 
these challenges were partially offset by 
our growth platforms including brilique 
growth and the expansion of our diabetes 
portfolio following the acquisition of 
bms’s interest in the joint diabetes 
alliance plus continued strong demand  
for fluenz 2014 70 million 2013 
42 million 2012 3 million
  established rest of world sales 
decreased by 4 to 3510 million 2013 
3973 million 2012 5080 million 
canada continued to be negatively 
impacted by erosion of crestor and 
nexium sales due to generic competition 
with total sales down 1 sales in 
australia were also lower due to generic 
competition to crestor and atacand 
sales growth in japan declined by 3 to 
2227 million 2013 2485 million 2012 
2904 million as a result of generic 
pressure on oncology products casodex 
and arimidex and the impact of the april 
223 astrazeneca annual report and form 20f information 2014
additional information additional information
geographical review continued
rapidly growing glp1 market in december 
2014 byetta achieved sales of 199 million
the farxiga launch in february 2014 
accelerated the growth of the sglt2 class 
of medicines by 1 15 post launch and grew 
the class prescribing base by 92 by the 
end of december 2014 170807 patients 
were on farxiga and farxiga captured  
nearly one in three new sglt2 patient 
treatment decisions the xigduo xr launch 
in november 2014 is the first us approval  
of a once daily tablet combining an sglt2 
inhibitor and metformin hcl extended
release and is an important addition to the 
diabetes franchise
in 2014 sales of synagis were down 19 
to 499 million a key driver of the decline 
was the newly issued guidelines from the 
american academy of pediatrics committee 
on infectious disease that restricted patients 
eligible for preventive therapy with synagis 
flumist quadrivalent launched in the us  
in 2013 as the first and only fdaapproved 
nasal spray flu vaccine to help protect 
against four strains of influenza flumist 
revenues in the us were up 10 to  
218 million 2013 199 million 2012  
174 million driven in part by a new 
preferential recommendation published  
in august 2014 by the us centers for 
disease control and prevention’s advisory 
committee on immunization practices for 
use of live attenuated influenza vaccine in 
eligible children aged two to eight
nexium was the fourth most prescribed 
branded pharmaceutical in the us nexium 
sales declined 12 to 1876 million 2013 
2 123 million 2012 2272 million due 
primarily to volume erosion and pricing 
pressure nexium remains the branded 
market leader retaining significant 
prescription market share and volume within 
the proton pump inhibitor class us sales 
benefited from the nonoccurrence of a 
nexium generic launch in 2014 however 
we expect generic entry in the us in 2015
the loss of exclusivity for seroquel ir in 
march 2012 and unfavourable reserve 
adjustments for medicaid liabilities and 
provisions taken on channel inventories 
resulted in negative sales for 2014 of 
72 million 2013 negative 17 million 2012  
positive 697 million the presence of 
generic competition has also impacted the 
prescription volume of seroquel xr sales  
of seroquel xr were down 1 to 
738 million 2013 743 million 2012 
81 1 million driven by lower volume 
the affordable care act aca which was 
enacted in march 2010 has had and is 
expected to continue to have a significant 
impact on our us sales and the us 
healthcare industry as a whole in 2014 the 
overall measurable reduction in our profit 
before tax for the year due to discounts on 
branded pharmaceutical sales to medicare 
part d beneficiaries and an industrywide 
excise fee was 714 million 2013 
557 million 2012 483 million this 
amount reflects only those effects of the 
aca that we know have had or will have  
a direct impact on our financial condition  
or results of operations and which we are 
therefore able to quantify based on known 
and isolatable resulting changes in individual 
financial items within our financial 
statements there are other potential 
indirect or associated consequences of the 
implementation of the aca which continue 
to evolve and which cannot be estimated 
but could have similar impacts these 
include broader changes in access to  
or eligibility for coverage under medicare 
medicaid or similar government 
programmes these could indirectly impact 
our pricing or sales of prescription products 
within the private sector by their nature and 
the fact that these potentially numerous 
consequences are not directly linked to a 
corresponding and quantifiable impact on 
our financial statements it is not possible 
to accurately estimate the financial impact  
of these potential consequences of the aca 
or related legislative changes when taken 
together with the number of other market 
and industryrelated factors that can also 
result in similar impacts further details on 
the impact of the aca are contained in 
pricing pressure in the marketplace section 
from page 14 and in the risk section from 
page 203
currently there is no direct governmental 
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 use 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 budgetary policies within 
crestor continued to demonstrate resilience 
in the highly competitive statin market 88 
of which is generic crestor achieved sales 
of 2918 million 2013 2912 million  
2012 3 164 million and a total prescription 
share within the statin market of 94 in 
december 2014 crestor sales in 2014 were 
in line with 2013 sales with higher average 
prices contributing 4 due to onetime prior 
year adjustments largely offset by volume 
declines of 4 crestor’s existing patient 
base remained solid representing 95 of 
crestor’s volume crestor’s commercial
medicare preferred access was 84  
at the end of 2014 2013 84 2012 87 
in 2014 crestor was the second most 
prescribed branded pharmaceutical in  
the us 
symbicort pmdi continued to deliver strong 
growth in the us with sales up 23 to 
151 1 million 2013 1233 million 2012 
1003 million with a volume increase 
contributing 25 and prescription growth of 
306 versus 2013 symbicort achieved a 
33 1 total prescription share in the month 
of december 2014 up 68 percentage 
points over the month of december 2013  
in the icslaba market 
on 1 february 2014 we completed our 
acquisition of bms’s 50 interest in our joint 
diabetes alliance the acquisition gave us 
ownership of the ip and global rights  
for the development manufacturing and 
commercialisation of the diabetes business 
which includes onglyza komboglyze 
kombiglyze xr farxigaforxiga xigduo 
xigduo xr byetta bydureon myalept  
and symlin
onglyzakombiglyze xr revenues in  
the us were up 82 to 481 million 2013 
265 million 2012 237 million primarily 
driven by the acquisition noted above 
partially offset by lower average net  
price and prescription volume the 
underlying prescription volume slightly 
declined as compared with 2013 as 
declines in prescription market share  
were partially offset by growth in the  
market for dpp4 inhibitors
bydureon revenues in the us were 
374 million bydureon achieved a 44 
total prescription market share gain in  
2014 reflecting continued momentum of 
bydureon with the launch of the bydureon 
pen in september 2014 with a total 
prescription market share of 207 of the 
224 astrazeneca annual report and form 20f information 2014 xr and atacand following generic entries 
resulted in a decrease in sales of 21 to 
512 million 2013 641 million 2012  
960 million crestor sales declined 3 
with a 1 reduction in volumes and 2 
reduction in prices as a result of increased 
competition from generic statins in a 
number of countries including france and 
italy government interventions continue to 
impact both price and volume negatively 
our growth platform sales partially offset 
these trends brilique sales reached  
231 million 2013 163 million 2012 
57 million our diabetes franchise 
generated sales of 359 million 2013 
1 19 million 2012 50 million respiratory 
sales were negatively impacted by pricing 
pressure on symbicort and the impact of 
symbicort analogues with sales declining 
to 1462 million 2013 1502 million 2012 
1465 million as volumes grew by 1 
while prices fell by 4
in germany sales increased by 5 to 
693 million 2013 657 million 2012 
775 million driven by strong growth 
across the diabetes portfolio and the 
impact of our acquisition of bms’s share of 
the global diabetes alliance total diabetes 
sales reached 108 million in 2014 2013 
32 million 2012 1 1 million growth in 
diabetes was partly offset by the ongoing 
impact of market entries of generic versions 
of atacand and seroquel xr as well as a 
symbicort analogue 
in the uk and ireland sales increased by 
3 to 832 million 2013 766 million  
2012 764 million driven by strong growth 
across the diabetes portfolio including the 
impact of our acquisition of bms’s share  
of the diabetes alliance diabetes sales 
reached 68 million in 2014 2013 
27 million 2012 7 million and brilique 
sales grew to 30 million 2013 18 million 
2012 4 million the uk and ireland 
experienced ongoing volume erosion on 
seroquel xr following generic entries and  
a decline in zoladex sales to 83 million 
2013 94 million 2012 100 million
sales in france decreased by 1 to  
1213 million 2013 1212 million 2012 
1314 million driven largely by volume 
erosion on atacand arimidex and zoladex 
following generic entries and subsequent 
government pricing interventions increased 
pressure from generic statins has adversely 
affected crestor  with sales down 7 to 
404 million 2013 428 million 2012 
424 million france experienced growth of 
seroquel xr in 2014 of 31 with sales 
reaching 77 million 2013 59 million 2012 
37 million brilique with 30 million of sales 
2013 18 million 2012 2 million and 
diabetes with 52 million of sales 2013 
20 million 2012 1 1 million
sales in spain and italy were down by 3  
to 497 million 2013 507 million 2012 
510 million and by 8 to 688 million 
2013 737 million 2012 777 million 
respectively mainly driven by generic  
entries and the implementation of volume 
prescription controls associated with 
existing and new austerity measures
established row
1
 
established row sales decreased by 4  
to 3510 million 2013 3973 million 2012 
5080 million driven by the continued 
impact of generic competition to crestor 
nexium and seroquel xr in canada and 
volume erosion of crestor and atacand  
in australia japan sales decreased 3  
the key products with sales growth in 
established row in 2014 were nexium 
symbicort brilinta byetta and onglyza
japan
sales in japan were 2227 million 
decreasing by 3 and negatively impacted 
on a reported basis by the revaluation of the 
japanese yen 2013 2485 million 2012 
2904 million declining sales on losec 
seroquel ir and other established oncology 
brands as well as the impacts of the 
mandated biennial price cut and a recall of 
nexium due to a packaging defect were 
partially offset by continued strong 
performance from nexium and crestor 
nexium achieved sales of 358 million 
2013 278 million 2012 78 million 
crestor sales grew by 2 retaining its 
position as the number one brand in the 
statin market in japan symbicort sales 
grew by 30 achieving a market share  
of 412 
sales were also negatively impacted by 
higher than expected generic pressure for 
our nonpromoted oncology products 
principally casodex
canada
due to the full year impact of the ‘at risk’ 
launch of a generic version of seroquel xr 
in canada in the first quarter of 2013 and 
the continued impact from the loss of 
exclusivity of crestor in april 2012 and the 
‘at risk’ launch of a generic version of 
nexium in 201 1 canadian sales decreased 
healthcare systems and providers including 
the use of generics only formularies and 
increases in patient coinsurance or 
copayments are the primary drivers of 
increased generics use in 2014 833  
of prescriptions dispensed in the us were 
generic while widespread adoption of a 
broad national pricecontrol scheme in the 
near future is unlikely increased focus on 
pharmaceutical prices and their impact on 
healthcare costs is likely to continue for the 
foreseeable future
rest of world
sales performance outside the us in 2014 
was flat with sales of 15975 million 2013 
16020 million 2012 17 318 million due  
to the ongoing impact of loss of exclusivity  
in 2014 of certain key products competition 
from generic products and the continually 
challenging economic environment this 
trend was partially offset by performance by 
our growth platforms with brilintabrilique 
up to 330 million 2013 210 million 2012 
70 million our diabetes franchise up to 
636 million 2013 197 million 2012 
86 million and symbicort up by 4 to 
2290 million 2013 2250 million 2012 
2 191 million emerging markets delivered 
a strong performance up 12 with sales  
of 5827 million 2013 5389 million  
2012 5095 million 
europe
astrazeneca is the tenth largest 
pharmaceutical company in europe with 
a 27 market share of prescription sales  
by value 
despite a slight improvement in conditions 
the macroeconomic environment remains 
challenging with the ongoing impact of 
austerity measures leading to increased 
pressure on healthcare budgets most 
governments in europe intervene directly  
to control the price volume and 
reimbursement of medicines several 
governments have imposed price 
reductions and increased the use of generic 
medicines as part of healthcare expenditure 
controls a number of countries are applying 
strict criteria for costeffectiveness evaluations 
of medicines which has delayed and 
reduced access to medicines for patients  
in areas of important unmet medical need 
these and other measures all contribute  
to an increasingly difficult environment for 
branded pharmaceuticals in europe 
total sales in europe were down 1 to 
6638 million 2013 6658 million 2012 
7  143 million volume erosion on seroquel 
1
 canada japan australia and new zealand
225 astrazeneca annual report and form 20f information 2014
additional information additional information
number of employees and we now have  
the largest sales force among multinational 
pharmaceutical companies in china the 
number of hospitals covered grew by 40
other emerging markets
2
we continued to build our presence in 
russia with sales growing by 18 to  
312 million 2013 310 million 2012  
314 million from strong performance  
in the retail segment to increase access  
to our medicines we established patient 
affordability programmes in 27 regions the 
russian market grew by 10 during 2014 
with astrazeneca outperforming the market 
as a result of growth in retail market share 
especially from crestor faslodex and 
symbicort we have 550 clinical trial sites  
in 37 cities our new production facility  
in vorsino is expected to commence 
commercial production in 2015
the latin american pharmaceutical  
market continues to grow however  
in many countries growth is being 
predominantly captured by generics 
branded generics and private label product 
offerings sales were up 8 to 1 181 million 
2013 1 188 million 2012 1331 million 
driven principally by brazil which grew by 
10 to 451 million 2013 447 million 
2012 497 million following successful 
launch of forxiga and continued strong 
uptake of brilinta sales in argentina also 
grew rapidly by 36 and although mexico 
has been impacted by penetration of 
generic products in the market sales grew 
by 5 to 210 million 2013 206 million 
2012 243 million driven by the diabetes 
and respiratory growth platforms and  
as inventory held in the supply chain  
by customers stabilised following a 
reduction in 2013 
in the middle east and africa despite 
political challenges arising from the ‘arab 
spring’ revolutions of 2012 and broader 
political conflict sales grew by 7 driven  
by strong growth in egypt the gulf states 
several emerging markets in africa as well 
as steady growth in turkey sales were flat 
in south africa and declined by 7 in saudi 
arabia as a result of generic entries and 
pricing interventions sales in asia increased 
by 7 to 948 million 2013 900 million 
2012 829 million led by south korea 
where sales grew 8 to 314 million 2013 
280 million 2012 239 million driven by 
brilinta our diabetes franchise and nexium 
sales grew at doubledigit rates in vietnam 
malaysia indonesia and india offsetting a 
modest decline in sales in thailand by 3  
to 79 million 2013 87 million 2012  
97 million as a result of government 
interventions and generic competition  
to crestor
launches in emerging markets in 2014 
included brilinta in saudi arabia turkey 
south africa and venezuela forxiga in 1 1 
markets including brazil russia mexico 
argentina south korea and malaysia 
bydureon in colombia kuwait and south 
korea and zinforo in brazil and mexico
by 1 to 590 million 2013 637 million 
2012 1090 million this decline was 
partially offset by performance by our 
diabetes franchise aided by our acquisition 
of bms’s interest in the diabetes alliance 
and strong performance by symbicort  
with sales up 8 to 159 million 2013 
146 million 2012 153 million
other established row
1
 
sales in other established row declined  
by 13 to 693 million 2013 851 million 
2012 1086 million sales in australia 
declined by 13 to 658 million 2013 
817 million 2012 1052 million due to 
continued volume erosion on crestor and 
atacand following generic entries in 2013 
and pricing pressure on other mature 
brands seroquel and arimidex nexium 
sales declined following generic entry in 
australia in august 2014 
emerging markets
in emerging markets sales increased by 
12 to 5827 million 2013 5389 million 
2012 5095 million which was principally 
driven by growth in china russia brazil 
and argentina and growth across a broad 
range of markets in our strategic growth 
platforms – brilinta and our diabetes and 
respiratory franchises
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 pay for medicines we are 
seeing continued efforts to reduce the cost 
of prescriptions in line with the efforts in 
europe canada and australia 
china
sales in china excluding hong kong  
grew by 22 to 2242 million 2013 
1840 million 2012 1512 million 
astrazeneca remained the second largest 
pharmaceutical company in china during 
2014 we saw strong sales of crestor and 
symbicort with sales growth of 47 and 
78 respectively nexium and pulmicort 
also continue to grow rapidly in 2013 
brilinta was launched in china and we  
have made positive progress on the listing  
of brilinta byetta and onglyza into key 
hospitals we continued to increase our 
geographical review continued
1
 australia and new zealand
2
  emerging markets excluding china
226 astrazeneca annual report and form 20f information 2014 additional information
responsible business
  employee safety health and wellbeing 
promoting the safety health and wellbeing 
of all our people worldwide as we 
continue to drive a highperformance 
culture and the achievement of our 
business goals see page 64
  working with suppliers working only with 
suppliers who have standards consistent 
with our own as we increase our 
outsourcing to drive business efficiency 
see page 57
  community investment making a positive 
contribution to our local communities 
around the world through community 
support programmes consistent with 
improving health and promoting science 
see page 65 
while we monitor performance in each of 
these areas of our business we have 
identified two areas of special focus access 
to healthcare and the environment in each 
case we believe that we have both the 
capability and the responsibility to 
implement standards that accelerate our 
business strategy while delivering wider 
benefits to society
a core element of our business strategy is 
valuecreating business development 
activity that strengthens our pipeline and 
accelerates growth this includes targeted 
acquisitions when we acquire companies 
we aim to align standards of responsible 
business and incorporate the companies 
into the setting of targets and measurement 
of performance
benchmarking
as expectations of stakeholders evolve we 
continue to engage with them and use the 
feedback to inform the development of our 
responsible business strategy and risk 
management planning
we also use the insights we gain from 
external surveys to develop our approach in 
line with global best practice as a member 
of the dow jones sustainability index since 
2001 we were once again listed in the 2014 
world index the top 10 of the largest 
2500 companies we also retained our 
listing on the djsi stoxx – european index 
the top 20 of the 600 largest european 
companies for the seventh year running 
one of four pharmaceutical companies to 
do so out of 14 assessed we achieved a 
total score of 79 2013 85 compared 
with a sector best score of 87 2013 
86 we increased individual scores for 
seven out of 24 criteria for 2014 compared 
with eight out of 22 criteria in 2013 including 
customer relationship management risk 
and crisis management climate strategy 
talent attraction and retention corporate 
citizenship and philanthropy stakeholder 
engagement and addressing cost burden 
while these scores are encouraging we  
lost ground in some areas such as 
corporate governance marketing practices 
innovation management human capital 
development social reporting occupational 
health and safety environmental reporting 
and bioethics 
to better understand these lower scores 
we commissioned an indepth external 
benchmark survey and the analysis will be 
used to inform our improvement planning
responsible business governance
the set is responsible for our responsible 
business framework and our nonexecutive 
director nancy rothwell oversees 
implementation and reporting to the board 
senior managers throughout the group are 
accountable for operating responsibly within 
their areas 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
our responsible business council the 
council is chaired by our vicepresident 
corporate affairs and members include 
senior leaders from each relevant set area 
its agenda is focused on driving longterm 
value creation by agreeing among  
other things
  responsible business priorities for the 
group in line with strategic business 
objectives
  managing and monitoring the annual 
process of setting responsible business 
objectives and targets as well as 
reviewing performance against kpis 
  appropriate policy positions to support 
our objectives and reputation 
management
in this section we describe our approach to 
delivering business success responsibly 
summary information about our commitment 
and performance in key areas is integrated 
into the relevant sections of this annual 
report while further information about these 
and other areas is available on our website 
wwwastrazenecacomresponsibility
introduction
in the strategy section from page 10 we 
describe our approach to creating value 
across the lifecycle of a medicine our 
distinctive capabilities and our strategy 
all these efforts are underpinned by our 
commitment to operating responsibly 
to ensure the future sustainability of the 
company in a way that adds value for our 
stakeholders to that end our responsible 
business objectives are aligned to and 
support the delivery of our business 
strategy our responsible business 
framework is the vehicle for managing 
commitments that are agreed across the 
group taking account of external 
stakeholder insights and internal reputational 
risk assessment 
the framework encompasses
  bioethics underpinning our accelerated 
drive for innovation with sound bioethics 
worldwide see page 54 
  access to healthcare as we expand our 
geographic footprint exploring ways of 
increasing access to healthcare for more 
people tailored locally to different patient 
needs see page 61 
  diversity and inclusion working to ensure 
that diversity in its broadest sense is 
reflected in our leadership and people 
strategies see page 63 
  the environment managing our impact 
on the environment across all our 
operations with a particular focus on 
carbon emissions waste and water use 
see page 58
  patient safety maintaining a strong focus 
on patient safety in everything we do 
minimising the risks and maximising the 
benefits of all our medicines throughout 
rd and after launch see page 54
  sales and marketing working to 
consistent global standards of ethical 
sales and marketing practices in all our 
markets as we work to restore growth 
see page 61
  human rights continuing to develop and 
embed a consistent approach to human 
rights across our worldwide activities see 
page 63
227 astrazeneca annual report and form 20f information 2014
additional information additional information
based on the evidence provided and 
subject to the scope objectives and 
limitations defined in the full assurance 
statement nothing has come to the 
attention of bureau veritas causing us  
to believe that the responsible business 
information contained within this annual 
report is materially misstated bureau 
veritas is a professional services company 
that has a long history of providing 
independent assurance services in 
environmental health safety social and 
ethical management and disclosure
the full assurance statement which 
includes bureau veritas’ scope of work 
methodology overall opinion and limitations 
and exclusions is available on our website 
wwwastrazenecacomresponsibility
carbon reporting 
the above table provides data on our global 
greenhouse gas emissions for 2014
we have reported on all of the emission 
sources required under the quoted 
companies greenhouse gas emissions 
directors’ reports regulations 2013 
these sources fall within our consolidated 
financial statements we do not have 
responsibility for any emission sources that 
are not included in our consolidated 
financial statements 
we have used the ghg protocol corporate 
accounting and reporting standard 
revised edition emission factors for 
electricity have been derived from the 
international energy agency and usepa 
egrid databases and for all other fuels  
and emission sources from the 2006 ipcc 
guidelines for national greenhouse gas 
inventories
bureau veritas has undertaken a limited 
assurance on the 2014 ghg emissions data 
the assurance statement including scope 
methodology overall opinion and limitations 
and exclusions is available on our website 
wwwastrazenecacomresponsibility 
the council is supported by a responsible 
business working group the working 
group of set area representatives  
among other things the working group 
continuously reviews external issues with 
the potential to impact astrazeneca and  
as appropriate prepares management and 
measurement proposals for the council’s 
consideration
external assurance 
bureau veritas has provided independent 
external assurance to a limited level on the 
following responsible business information 
contained within this annual report 
  patient safety page 54
  clinical trials and transparency page 55 
  animal research page 55
  increasing access to healthcare page 61
  sales and marketing ethics page 61
  working with suppliers page 57
  environmental impact page 58
  improving the strength and diversity of the 
talent pipeline page 63
  human rights page 63
  safety health and wellbeing page 64
  community investment page 65
  responsible business page 227 
carbon reporting 
global greenhouse gas emissions data for the period 1 january 2014 to 31 december 2014
tonnes of co 2e
2014 2013 
1
2012
emissions from  
combustion of fuel and operation of facilities
2
 325700 323400 318700
electricity heat steam and cooling purchased for own use 290300 274400 277100
company’s chosen intensity measurement  
emissions reported above normalised to million us dollar revenue 236 233 213
supplemental information  
net electricity heat steam and cooling emissions after write down due to voluntary purchase of electricity supplied under 
certified low carbon supply contracts or carbon certificates
3
244800 238200 250800
supply chain emissions  
upstream emissions from personnel air travel goods transport and waste incineration 167900 155400 169800
downstream emissions from hfa propellants released during patient use of our inhaled medicines 448900 352000 299600
1  
regular review of the data is carried out to ensure accuracy and consistency this has led to slight changes in the data for previous years none of the changes is statistically significant  
the data quoted in this annual report are generated from the revised data
2
 included in this section are greenhouse gases from direct fuel combustion process and engineering emissions at our sites and from fuel use in our vehicle fleet
3
  some electricity supplied to our uk sites has been provided under a green power contract and is backed up with an equivalent quantity of renewable energy guarantees of origin and some  
of the electricity consumed at our us sites is covered by purchase of renewable energy certificates
responsible business continued
228 astrazeneca annual report and form 20f information 2014 additional information
core gross margin in 2013 was 820 
05 percentage points lower than 2012 at 
cer actual 04 percentage points driven 
by changes in our product mix to lower 
margin products
core rd expenditure in 2013 was up 1 
at cer and actual as a result of absorbing 
higher costs from business development 
projects as well as investment in the growing 
number of latestage trials 
core sga costs in 2013 were 7 higher 
than 2012 at cer actual 6 as a result of 
increased levels of expenditure in support of 
our growth platforms of brilintabrilique the 
diabetes franchise and emerging markets 
during 2013 sga costs also reflect a full 
year of costs associated with our expanded 
diabetes alliance with bms on amylin 
products entered into in 2012 the excise 
fee imposed by the enactment of us 
healthcare reform measures amounted 
to 27 2012 28 of core sga costs 
in 2013
core other income in 2013 was down 30 
at cer and actual with 2012 benefiting 
from the sale of otc rights for nexium 
the 2013 core operating profit was down 
22 on a cer basis actual 25 to 
8390 million core operating margin in 
2013 was 326 of revenue down 69 
percentage points at cer actual 7 3 
percentage points the decline in core 
operating profit was greater than the decline 
in revenue primarily due to expenditure 
associated with the group’s growth 
platforms and strengthened pipeline
the 2013 revenue decreased 6 on a cer 
basis and 8 on an actual basis compared 
with 2012 the revenue decline was driven 
by a loss of exclusivity on brands including 
atacand crestor nexium and seroquel ir 
which reduced revenue by 22 billion at 
cer our growth platforms of brilinta
brilique the diabetes franchise which 
benefited from a full year of amylinrelated 
product sales respiratory emerging 
markets and japan delivered an incremental 
12 billion of revenue at cer in 2013 2013 
revenue in the us was down 9 on a cer 
basis actual 9 with revenue in the rest 
of world down 4 at cer actual 7 
emerging markets sales increased by 8 at 
cer actual 6 further details of our 
sales performance are contained in the 
geographical review from page 220
results of operations – summary analysis of year ending 31 december 2013 
2013 reported operating profit
2013 2012 percentage of sales 2013 compared with 2012
reported
m
cer 
growth
m
growth
due to
exchange
effects
m
reported
m
reported
2013

reported
2012

cer 
growth

actual 
growth

revenue 25711 1701 561 27973 6 8
cost of sales 5261 9 123 5393 205 193 – 2
gross profit 20450 1692 438 22580 795 807 7 9
distribution costs 306 10 4 320 12 11 3 4
research and development 4821 411 11 5243 187 188 8 8
selling general and administrative costs 12206 2508 141 9839 475 352 25 24
other operating income and expense 595 379 4 970 23 35 39 39
operating profit 3712 4158 278 8148 144 291 51 54
net finance expense 445 502
profit before tax 3267 7646
taxation 696 1376
profit for the period 2571 6270
basic earnings per share  204 495
2013 reconciliation of reported results to core results
core 2013 
compared with 2012
2013
reported
m
restructuring
costs
m
intangible 
amortisation 
m
net
intangible
impairments
m
legal 
provisions 
and other
m
2013 
core
m
cer 
growth 

actual
growth

gross profit 20450 126 502 – – 21078 7 9
gross margin  795 820
distribution costs 306 – – – – 306 3 4
research and development 4821 490 30 50 18 4269 1 1
selling general and administrative costs 12206 805 902 1662 28 8865 7 6
other operating income and expense 595 – 157 – – 752 30 30
operating profit 3712 1421 1591 1712 46 8390 22 25
operating margin  144 326
taxation 696 302 256 364 7 1611
basic earnings per share  204 090 106 108 003 505
 each of the measures in the core column in the above table is a nongaap measure
financials prior year
229 astrazeneca annual report and form 20f information 2014
additional information additional information
financials prior year continued
mainly the result of the 1758 million 
impairment of bydureon as well as the full 
year amortisation related to the merck 
second option 
net finance expense in 2013 was 
445 million 2012 502 million interest 
payable on defined benefit pension scheme 
liabilities fell by 14 million and there were 
fair value gains of 5 million recorded on 
longterm bonds in 2013 versus 10 million 
losses in 2012 interest on longterm bonds 
for 2013 was 16 million lower than 2012
the 2013 reported taxation charge of 
696 million 2012 1376 million consisted 
of a current tax charge of 1398 million 
2012 1677 million and a credit arising 
from movements on deferred tax of 
702 million 2012 301 million the current 
tax charge includes a prior period current 
tax charge of 46 million 2012 credit of 
79 million
the reported tax rate for 2013 was 213 
compared with 18 for 2012 the reported 
tax rate for the year ended 31 december 
2012 benefited from a 230 million 
adjustment to deferred tax balances 
following substantive enactment of a 
reduction in the swedish corporation tax 
rate from 263 to 22 and a 240 million 
adjustment in respect of prior periods 
following the settlement of a transfer pricing 
matter excluding these benefits the 
reported tax rate for 2012 was 24 1 
further details relating to movements in our 
taxation balances are included in note 4 to 
the financial statements from page 145
total comprehensive income for  
2013 decreased by 3947 million to 
2458 million this was driven by the 
decrease in profit of 3699 million  
and a decrease of 248 million in  
other comprehensive income which  
was principally due to the effects of 
movements in exchange rates on our 
consolidated results 
cash flow and liquidity – 2013
all data in this section is on a reported 
basis 
cash generated from operating activities 
was 7 400 million for the year ended  
31 december 2013 compared with 
6948 million in 2012 lower tax and 
interest payments partially offset the lower 
operating profit in 2013 after adjusting for 
impairments and noncash costs while 
working capital movements and a oneoff 
pension fund contribution drove higher 
outflows in 2012 
investment cash outflows of 3 1 12 million  
in 2013 2012 5607 million included 
1 158 million on completion of the 
acquisitions of pearl therapeutics omthera 
amplimmune and spirogen and 
1316 million for the purchase of other 
intangible assets the 2012 comparative 
period included the cash outflows for the 
purchase of ardea 1 187 million and 
intangible assets associated with our 
collaboration with bms on amylin  
3358 million
net cash distributions to shareholders in 
2013 were 2979 million through dividends 
of 3461 million partially offset by proceeds 
from the issue of shares of 482 million 
at 31 december 2013 outstanding gross 
debt interestbearing loans and borrowings 
was 10376 million 2012 10310 million 
of the gross debt outstanding at 31 
december 2013 1788 million is due within 
one year 2012 901 million 
net funds were 39 million at 31 december 
2013 an increase of 1408 million due to 
the net cash inflow as described above
financial position – 2013
all data in this section is on a reported 
basis
in 2013 net assets decreased by 
693 million to 23253 million the 
decrease in net assets is broadly as a result 
of the 2013 group profit of 2571 million 
being offset by dividends of 3499 million
property plant and equipment
property plant and equipment decreased 
by 271 million to 5818 million in 2013 
additions of 816 million 2012 772 million 
were offset by depreciation of 906 million 
2012 1023 million impairments of 
101 million 2012 nil and disposals  
of 82 million 2012 224 million
goodwill and intangible assets
our goodwill of 9981 million at 31 
december 2013 2012 9898 million 
principally arose on the acquisition of 
medimmune in 2007 and the restructuring 
of our us joint venture with merck in 1998 
goodwill of 77 million arising on our 
acquisitions of pearl therapeutics and 
core eps was 505 in 2013 down 23 
compared with 2012 at cer actual 26 
and broadly in line with the decline in core 
operating profit 
pretax adjustments to arrive at core 
amounted to 4678 million in 2013 2012 
301 1 million excluded from core  
results were 
  restructuring costs totalling 1421 million 
2012 1558 million incurred as the 
group commenced the fourth phase of 
restructuring announced in march 2013 
  amortisation totalling 1591 million 2012 
1 134 million relating to intangible assets 
except for itrelated amortisation charges 
the increase was driven by a full year of 
amortisation arising from the amendment 
to the merck exit arrangements and the 
expansion of our diabetes alliance during 
2012 as detailed in note 9 to the financial 
statements from page 153
  new intangible impairment charges of 
1712 million 2012 186 million 
including 1758 million against bydureon 
following sales performance below 
astrazeneca’s commercial expectations at 
the time of entering into the expanded 
diabetes alliance in 2012 and 136 million 
following astrazeneca’s decision not to 
proceed with regulatory filings for 
fostamatinib partially offsetting these 
charges was the impairment reversal of 
285 million following the commencement 
in 2013 of the first of several phase iii 
clinical programmes for olaparib the full 
historic carrying value of the asset has 
been restored to our balance sheet 
further details relating to intangible asset 
impairments are included in note 9 to the 
financial statements from page 153
  legal provisions and other adjustments of 
46 million income 2012 133 million 
charges including an 18 million 
adjustment to the fair value of contingent 
consideration payable arising from our 
business combinations completed in 
2013 as detailed in notes 19 and 24 to 
the financial statements on page 162 
and from page 170
the 2013 reported operating profit was 
down 51 at cer actual 54 to 
3712 million reported eps was down 
55 on a cer basis in 2013 actual 59 
to 204 the larger declines compared with 
the respective core financial measures are 
230 astrazeneca annual report and form 20f information 2014 on the acquisitions of pearl therapeutics 
149 million omthera 62 million 
amplimmune 153 million and spirogen 
168 million
provisions increased by 45 million in  
2013 including 771 million of additional 
charges recorded in the year offset by 
681 million of cash payments included 
within the 771 million of charges for 2013 
was 652 million for our global restructuring 
initiative and 23 million in respect of  
legal charges cash payments in 2013 
included 532 million for our global 
restructuring programme 
tax payable and receivable
net income tax payable in 2013 increased 
by 523 million to 2582 million principally 
due to cash tax timing differences and an 
increase in accruals for tax contingencies 
the 31 december 2013 tax receivable 
balance of 494 million comprised tax 
owing to astrazeneca from certain 
governments expected to be received on 
settlements of transfer pricing audits and 
disputes and cash tax timing differences 
net deferred tax liabilities increased by 
157 million in 2013
retirement benefit obligations
net retirement benefit obligations  
decreased by 10 million in 2013  
employer contributions to the pension 
scheme of 369 million were offset by 
current and past service cost charges  
of 204 million net financing costs of 
79 million and exchange movements 
amplimmune as detailed in note 24 to the 
financial statements from page 170 was 
capitalised in 2013
intangible assets amounted to 
16047 million at 31 december 2013  
2012 16448 million intangible asset 
additions were 3217 million in 2013  
2012 6916 million including product 
rights acquired in our acquisitions of pearl 
therapeutics 985 million omthera  
526 million amplimmune 534 million 
and spirogen 371 million amortisation  
in 2013 was 1779 million 2012 
1296 million impairment charges in  
2013 amounted to 2082 million 2012 
199 million including a 1758 million 
charge on our diabetes product bydureon 
and a 136 million impairment charge 
following our decision not to proceed with 
regulatory filings for fostamatinib these 
2013 impairment charges were partially 
offset by a 285 million impairment reversal 
following enrolment of the first patient in the 
first of several phase iii clinical programmes 
for olaparib an impairment provision 
previously having been taken against this 
compound in 201 1 
further details of our additions to intangible 
assets and recorded impairments are 
included in note 9 to the financial 
statements from page 153 
receivables payables and provisions
trade receivables decreased by 182 million 
to 5514 million in line with lower revenues 
in 2013 
prepayments and accrued income 
increased by 1988 million driven 
principally by an increase in prepayments 
following the modification of the royalty 
structure under our global licence 
agreement for crestor  which was amended 
to include fixed minimum and maximum 
annual royalty payments to shionogi  
these future royalties were recognised 
within payables and as a prepayment 
prepayments also increased due to 
payments made to moderna therapeutics 
and immunocore during 2013 on new 
research collaborations 
trade and other payables increased by 
2492 million in 2013 to 12714 million 
with increases in other payables of 
2277 million due to the recognition  
of future royalty payments on crestor  
as detailed above and contingent 
consideration of 532 million recognised  
231 astrazeneca annual report and form 20f information 2014
additional information additional information
shareholder information
astrazeneca plc share listings and prices 
2010 2011 2012 2013 2014
ordinary shares in issue – millions 
at year end 1409 1292 1247 1257 1263
weighted average for year 1438 1361 1261 1252 1262
stock market price – per ordinary share 
highest pence 3385 3194 31115 3612 48235
lowest pence 2732 25435 2591 29095 35495
at year end pence 2922 2975 29095 35745 45555
percentage analysis of issued share capital at 31 december 
by size of account 
number of ordinary shares
2010

2011

2012

2013

2014

1 – 250 05 06 06 05 05
251 – 500 06 07 07 06 06
501 – 1000 08 08 08 08 07
1001 – 5000 11 12 11 11 10
5001 – 10000 02 02 02 02 02
10001 – 50000 10 10 10 10 10
50001 – 1000000 128 138 126 123 133
over 1000000
1
830 817 830 835 827
1
 includes euroclear and adr holdings
at 31 december 2014 the company had 
100371 registered holders of 1263 143338 
ordinary shares there were 104555 
holders of ordinary shares held under the 
euroclear services agreement representing 
1 16 of the issued share capital of the 
company and approximately 249000 
holders of adrs representing 96 of the 
issued share capital of the company each 
adr is equivalent to one ordinary share 
with effect from 6 february 2015 citibank 
na citibank succeeded jpmorgan  
chase bank jpmorgan as depositary  
of the adrs 
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 opposite sets out for 
2013 and 2014 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
232 astrazeneca annual report and form 20f information 2014 ordinary lse ordinary sse ads
high pence low pence high sek low sek high us low us
2013 – quarter 1 32995 29095 3239 2845 5006 4467
– quarter 2 35215 30525 3549 3174 5301 4722
– quarter 3 33350 31165 3362 3196 5208 4787
– quarter 4 36120 31130 3878 3215 5950 4972
2014 – quarter 1 41030 35495 4463 3805 6838 5851
– quarter 2 48235 37230 5325 4097 8109 6245
– quarter 3 45970 40925 5360 4673 7631 6849
– quarter 4 47800 41695 5585 4845 7538 6715
– july 44510 43145 5205 5015 7631 7279
– august 45670 40925 5290 4673 7601 6849
– september 45970 43740 5360 5145 7551 7099
– october 45435 41695 5365 4845 7294 6715
– november 47800 45205 5575 5340 7538 7250
– december 47100 44490 5585 5305 7394 6956
major shareholdings
at 31 january 2015 the following had disclosed an interest in the issued ordinary share capital of the company in accordance with the 
requirements of rules 5 12 or 5 15 of the uk listing authority’s disclosure and transparency rules
shareholder
number of 
ordinary shares
date of
disclosure to
company
1
percentage of
issued share
capital
blackrock inc 100885181 8 december 2009 799
investor ab 51587810 2 february 2012 408
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
so far as the company is aware no other person held a notifiable interest in 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
shareholder
31 january 
2015
31 january 
2014
2 february
 2013
27 january
 2012
blackrock inc 799 801 808 787 
investor ab 408 409 413 402
invesco limited  500 578 583 567
axa sa  300 452 457 444
legal  general investment management limited  300 300 462 450
the capital group companies inc  300 301  300  300
adss evidenced by adrs issued by jpmorgan as depositary are listed on the nyse at 31 january 2015 the proportion of ordinary 
shares represented by adss was 957 of the ordinary shares outstanding
number of registered holders of ordinary shares at 31 january 2015
  in the us 717
  total 100075
number of record holders of adrs at 31 january 2015
  in the us 1886
  total 1912
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
the company does not know of any arrangements the operation of which might result in a change in the control of the company
233 astrazeneca annual report and form 20f information 2014
additional information additional information
shareholder information continued
at 31 january 2015 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 630127 005
related party transactions
during the period 1 january 2015 to 31 
january 2015 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 29 to the 
financial statements on page 188
options to purchase securities from 
registrant or subsidiaries
a at 31 january 2015 options outstanding 
to subscribe for ordinary shares were
number of shares
subscription 
price pence
normal 
expiry date
4239761 1882 – 3599 2015 – 2020 
the weighted average subscription price of 
options outstanding at 31 january 2015 was 
2595 pence all options were granted under 
company employee share schemes
b included in paragraph a are options 
granted to officers of the company  
as follows
number of shares
subscription 
price pence
normal 
expiry date
90499 2280 – 3599 2016 – 2020 
c at 31 january 2015 none of the directors 
of the company held options to subscribe 
for ordinary shares
during the period 1 january 2015 to  
31 january 2015 no director exercised  
any options
dividend payments
for ordinary shares listed on the lse and 
the sse the record date for the second 
interim dividend for 2014 payable on 23 
march 2015 is 20 february 2015 and the 
exdividend date is 19 february 2015 for 
adrs listed on the nyse the record date is 
20 february 2015 and the exdividend date 
is 18 february 2015
the record date for the first interim dividend 
for 2015 payable on 14 september 2015 is 
14 august 2015
future dividends will normally be paid as 
follows
  first interim announced in julyaugust 
and paid in september
  second interim announced in january
february and paid in march 
shareview
the company’s shareholders with  
internet access may visit the website  
wwwshareviewcouk and register their 
details to create a portfolio shareview is  
a free and secure online service from the 
company’s registrar 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 
wwwsharegiftorg 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 its website 
wwwhmrcgovuk 
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 2015 will 
be published on 24 april 2015 and results in 
respect of the first six months of 2015 will be 
published on 30 july 2015
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 persons
the following summary of material uk and 
us federal income tax consequences of 
ownership of ordinary shares or adrs held 
as capital assets by the us resident holders 
described below 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 
holders’ particular circumstances and tax 
consequences applicable to us resident 
holders subject to special rules such as 
certain financial institutions entities treated 
as partnerships for us federal income tax 
purposes persons whose functional 
currency for us federal income tax 
purposes is not the us dollar taxexempt 
entities persons subject to alternative 
minimum tax persons subject to the 
medicare contribution tax on ‘net 
investment income’ or persons holding 
ordinary shares or adrs in connection with 
a trade or business conducted outside of 
the us us resident holders are urged to 
consult their tax advisers regarding the  
uk and us federal income tax 
consequences of the ownership and 
disposition of ordinary shares or adrs  
in their particular circumstances 
this summary is based in part on 
representations of jpmorgan and citibank 
as depositaries for adrs and assumes that 
each obligation in the deposit agreement 
among the company and the depositaries 
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 american depositary 
shares are released before shares are 
234 astrazeneca annual report and form 20f information 2014 rate of the relevant foreign currency on  
the date the dividend is received by the us 
resident holders 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 
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 taxable 
at the rates applicable to ordinary income  
if the amount of such dividend is converted 
into us dollars after 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 may be taxable at favourable us 
federal income tax rates us resident 
holders 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 these 
favourable rates
taxation on capital gains
under present english 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 or other permanent 
establishment
a us resident holder 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 tax basis in the ordinary shares or 
adrs us resident holders 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 holders and 
capital losses the deductibility of which  
may be subject to limitation
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 2014 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 holders
information reporting and backup 
withholding
payments of dividends and sales proceeds 
that are made within the us or through 
certain usrelated financial intermediaries 
may be subject to information reporting  
and backup withholding unless i the us 
resident holder is a corporation or other 
exempt recipient or ii in the case of backup 
withholding the us resident holder provides 
a correct taxpayer identification number  
and certifies that it is not subject to backup 
withholding the amount of any backup 
withholding from a payment to a us 
resident holder will be allowed as a credit 
against the holder’s us federal income  
tax liability and may entitle the holder  
to a refund provided that the required 
information is timely supplied to the us 
internal revenue service irs
certain us resident holders who are 
individuals and under proposed us 
treasury regulations certain entities may 
be required to report information relating  
to securities issued by nonus persons  
or foreign accounts through which the 
securities are held generally on irs form 
8938 subject to certain exceptions 
including an exception for securities held  
in accounts maintained by us financial 
institutions us resident holders should 
consult their tax advisers regarding their 
reporting obligations with respect to the 
ordinary shares or adrs
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 
delivered to the depositary prerelease  
or intermediaries in the chain of ownership 
between holders and the issuer of the 
security underlying the american depositary 
shares may be taking actions that are 
inconsistent with the claiming by us 
holders of american depositary shares  
of foreign tax credits for us federal income 
tax purposes such actions would also be 
inconsistent with the claiming of the reduced 
tax rates described below applicable to 
dividends received by certain noncorporate 
us resident holders accordingly the 
availability of the reduced tax rates for 
dividends received by certain noncorporate 
us resident holders could be affected by 
actions that may be taken by parties to 
whom adrs are prereleased
for the purposes of this summary the term 
‘us resident holder’ means a beneficial 
owner of ordinary shares or adrs that  
is for us federal income tax purposes a 
citizen or resident of the us a corporation 
or other entity taxable as a corporation 
created or organised in or under the laws of 
the us any state in the us or the district of 
columbia or an estate or trust the income 
of which is subject to us federal income 
taxation regardless of its source
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 holder 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 the company does 
not maintain calculations of its earnings  
and profits under us federal income tax 
principles and so it is expected that 
distributions generally will be reported to us 
resident holders 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 foreign 
currency payment determined at the spot 
235 astrazeneca annual report and form 20f information 2014
additional information additional information
uk stamp duty reserve tax  
and stamp duty
a charge to uk stamp duty or uk stamp 
duty reserve tax sdrt may arise on the 
deposit of ordinary shares in connection 
with the creation of adrs the rate of stamp 
duty or sdrt will generally be 15 of the 
value of the consideration or in some 
circumstances the value of the ordinary 
shares there is no 15 sdrt charge  
on the issue of ordinary shares or where  
it is integral to the raising of new capital  
the transfer of ordinary shares into the  
adr arrangement 
no uk stamp duty will be payable on the 
acquisition or transfer of existing adrs 
provided that any instrument of transfer or 
written agreement to transfer is executed 
outside the uk and remains at all times 
outside the uk an agreement for the 
transfer of adrs will not give rise to a liability 
for sdrt
a transfer of or an agreement to transfer 
ordinary shares will generally be subject  
to uk stamp duty or sdrt at 05 of the 
amount or value of any consideration 
provided in the case of stamp duty it is 
rounded to the nearest £5
transfers of ordinary shares into crest  
will generally not be subject to stamp duty 
or sdrt unless such a transfer is made for 
a consideration in money or money’s worth 
in which case a liability to sdrt will arise 
usually at the rate of 05 of the value  
of the consideration paperless transfers  
of ordinary shares within crest are 
generally liable to sdrt at the rate of 05 
of the value of the consideration crest  
is obliged to collect sdrt from the 
purchaser on relevant transactions settled 
within the system
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 
the following information relating to  
average and spot exchange rates used by 
astrazeneca is provided for convenience
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 domiciled 
shareholder the ordinary shares or  
adrs will generally not be subject to uk 
inheritance tax unless the settlor at the  
time of settlement was a uk national  
or 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 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
sekus usgbp
average rates statement of comprehensive income statement of cash flows 
2012 67782 15834
2013 65089 15621
2014 67901 16532
end of year spot rates statement of financial position 
2012 65176 16171
2013 64233 16502
2014 77451 15559
shareholder information continued
236 astrazeneca annual report and form 20f information 2014 additional information
corporate information
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 at least 125 
which currently represents 500 shares
rights preferences and restrictions 
attaching to shares
as at 31 december 2014 the company had 
1263 143338 ordinary shares and 50000 
redeemable preference shares in issue 
the ordinary shares represent 9998  
and the redeemable preference shares 
represent 002 of the company’s total 
share capital these percentages have  
been calculated by reference to the closing 
midpoint usgbp exchange rate on 31 
december 2014 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 threequarters 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 is a corporate 
representative of the same corporation  
or each of the two persons present is  
a 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 are fit for their purpose
 
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 
business of novartis 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’s corporate office is at  
2 kingdom street london w2 6bd
articles
objects
the company’s objects are 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
237 astrazeneca annual report and form 20f information 2014
additional information additional information
trade marks
astrazeneca the astrazeneca logotype and the astrazeneca symbol are all trade marks of the group 
the following brand names which appear in italics in this annual report are trade marks of the group 
trade mark
accolate entocort myalept
1
seroquel xr
arimidex farxiga naropin symbicort
atacand faslodex nexium symbicort smart
atacand hct fluenz nolvadex symbicort turbuhaler
atacand plus flumist onglyza symlin
axanum forxiga oxis turbuhaler synagis
2
bricanyl genuair plendil tenormin
3
brilinta iressa pressair toprolxl
brilique kombiglyze prilosec turbuhaler
bydureon komboglyze pulmicort vimovo
byetta losec pulmicort flexhaler xigduo
caprelsa lynparza pulmicort respules xylocaine
casodex meronem pulmicort turbuhaler zestril
3
crestor merrem rhinocort zoladex
diprivan movantik seloken zomig
emla moventig seroquel 
1 
astrazeneca assigned this trade mark to aegerion effective 9 january 2015
2
 astrazeneca owns this trade mark in the us only abbvie inc owns it in the rest of the world
3
 astrazeneca assigned these trade marks in the us to alvogen effective 9 january 2015
the following brand names which appear in italics in this annual report are trade marks licensed to the group by the entities set out below
trade mark licensor or owner
bretaris almirall sa
cubicin cubist pharmaceuticals inc
daliresp takeda gmbh
duaklir almirall sa
eklira almirall sa
epanova chrysalis pharma ag
tudorza almirall sa
zinforo forest laboratories holdings limited
zytiga
1
janssen pharmaceutical kk
1
 astrazeneca has been licensed this trade mark for use in japan only
the following brand names which appear in italics throughout this annual report are not owned by or licensed to the group and are owned 
by the entities set out below
trade mark owner
lipitor pfizer ireland pharmaceuticals
messenger rna therapeutics moderna therapeutics inc 
238 astrazeneca annual report and form 20f information 2014 glossary
market definitions
region country
us us
europe albania cyprus germany kazakhstan poland sweden
austria czech republic greece latvia portugal switzerland
belarus
denmark hungary lithuania romania uk
belgium estonia iceland luxembourg
serbia and  
montenegro ukraine
bosnia and 
herzegovina finland ireland malta slovakia
bulgaria france israel netherlands slovenia
croatia georgia italy norway spain
established row australia japan
canada new zealand
emerging markets algeria colombia indonesia netherlands antilles saudi arabia turkey
argentina costa rica iran nicaragua singapore united arab emirates
aruba cuba iraq oman south africa uruguay
bahamas dominican republic jamaica other africa south korea venezuela
bahrain ecuador jordan pakistan sri lanka vietnam
barbados egypt kuwait palestine sudan yemen
belize el salvador lebanon panama syria
bermuda guatemala libya peru taiwan
brazil honduras malaysia philippines thailand
chile hong kong mexico qatar trinidad and tobago
china india morocco russia tunisia
 ims health ims midas quantum q3 2014 data is not available or astrazeneca does not subscribe for ims health quarterly data for these countries
the above table is not an exhaustive list of all the countries in which astrazeneca operates and excludes countries with revenue in 2014 of 
less than 1 million
established markets means us europe and established row
other established row means australia and new zealand 
other emerging markets means all emerging markets except china
other africa includes angola botswana ethiopia ghana kenya mauritius mozambique namibia nigeria swaziland tanzania uganda 
zambia and zimbabwe 
asia area comprises india indonesia malaysia philippines singapore south korea sri lanka taiwan thailand and vietnam
us equivalents 
terms used in this annual report 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 
loans longterm debt 
prepayments prepaid expenses 
profit income 
profit and loss account income statementconsolidated statement of comprehensive income 
share premium account premiums paid in excess of par value of ordinary shares 
shortterm investments redeemable securities and shortterm deposits 
239 astrazeneca annual report and form 20f information 2014
additional information additional information
glossary continued
ceo – the chief executive officer of the 
company
cer – constant exchange rates
cfda – china food and drug administration
cfo – the chief financial officer of the 
company
cis – commonwealth of independent states
code of conduct – the group’s code of 
conduct
company or parent company – astrazeneca 
plc formerly zeneca group plc zeneca
copd – chronic obstructive pulmonary disease 
corporate integrity agreement cia – the 
agreement described in the us corporate 
integrity agreement reporting section on page 61
cros – contract research organisations
cvmd – cardiovascular and metabolic diseases
cv – cardiovascular
definiens – definiens ag
director – a director of the company
doj – the united states department of justice
earnings per share eps – profit for the year 
after tax and noncontrolling interests divided by 
the weighted average number of ordinary shares 
in issue during the year
ec – european commission
efpia – european federation of pharmaceutical 
industries and associations
ema – european medicines agency
epo – european patent office
evp – executive vicepresident 
eu – the european union
fdc – fixeddose combination
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
fibrogen – fibrogen inc
forest – forest laboratories holdings limited
gaap – generally accepted accounting 
principles
gmd – global medicines development
gpps – global product and portfolio strategy 
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
gsk – glaxosmithkline plc
hha – healthy heart africa programme
hr – human resources
ia – the group’s internal audit services function
ias – international accounting standards
ias 19 – ias 19 employee benefits
ias 32 – ias 32 financial instruments 
presentation
ias 39 – ias 39 financial instruments 
recognition and measurement
iasb – international accounting standards 
board
ifrs – international financial reporting 
standards or international financial reporting 
standard as the context requires
ifrs 8 – ifrs 8 operating segments
imed – innovative medicines and early 
development
immunocore – immunocore limited
ip – intellectual property
is – information services
isas – international standards on auditing
it – information technology
janssen – janssen research  development 
llc
kpi – key performance indicator
krona kronor or sek – references to the 
currency of sweden
kyowa hakko kirin – kyowa hakko kirin  
co ltd
lcm projects – significant lifecycle 
management projects as determined by potential 
revenue generation or line extensions
lean – means enhancing value for customers 
with fewer resources 
lilly – eli lilly and company 
lti – longterm incentive in the context of share 
plan remuneration arrangements
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 
major market – us eu japan and china
mat – moving annual total
medimmune – medimmune llc formerly 
medimmune inc
merck – merck sharp  dohme corp formerly 
merck  co inc
mi – myocardial infarction
the following abbreviations and expressions  
have the following meanings when used in this 
annual report
abbvie – abbvie inc 
aca 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
acs – acute coronary syndrome
actavis – actavis plc
adc therapeutics – adc therapeutics sàrl
adr – an american depositary receipt 
evidencing title to an ads
ads – an american depositary share 
representing one underlying ordinary share
advaxis – advaxis inc
agm – an annual general meeting of the 
company
aegerion – aegerion pharmaceuticals inc 
almirall – almirall sa
amgen – amgen inc 
amplimmune – amplimmune inc
amylin – amylin pharmaceuticals llc formerly 
amylin pharmaceuticals inc 
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 2014
api – active pharmaceutical ingredient
ardea – ardea biosciences inc
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
azip – astrazeneca investment plan
bace – beta secretase clearing enzyme 
biologics – a class of drugs that are produced 
in living cells
biosimilars – a copy of a biologic that  
is sufficiently similar to meet regulatory 
requirements
bla – biologics license application
bms – bristolmyers squibb company
board – the board of directors of the company
bureau veritas – bureau veritas uk limited
240 astrazeneca annual report and form 20f information 2014 and phase iib studies which tend to assess 
safety and efficacy
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 
benefitrisk profile of the drug phase iii studies 
usually include between several hundred and 
several thousand patients
phc – personalised healthcare
pmda – pharmaceuticals and medical devices 
agency of japan
pmdi – pressurised metereddose inhaler
pound sterling £ gbp pence or p – 
references to the currency of the uk
pozen – pozen inc
primary care – general healthcare provided by 
physicians who ordinarily have first contact with 
patients and who may have continuing care for 
them
proof of concept – data demonstrating that a 
candidate drug results in a clinical change on an 
acceptable endpoint or surrogate in patients with 
the disease
psp – astrazeneca performance share plan
pte – 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 the analogous right in the eu  
is an spc
qiagen – qiagen manchester limited
rd – research and development
redeemable preference share – a 
redeemable preference share of £1 each in the 
share capital of the company
regulatory data protection rdp – see the 
intellectual property section from page 68
regulatory exclusivity – any of the ip rights 
arising from generation of clinical data and 
includes regulatory data protection paediatric 
exclusivity and orphan drug status
roche – f hoffmannla roche ag
rsv – respiratory syncytial virus
sarbanesoxley act – the us sarbanesoxley 
act of 2002
sec – the us securities and exchange 
commission the governmental agency that 
regulates the us securities industry and stock 
markets
seroquel – seroquel ir and seroquel xr
set – senior executive team
sga costs – selling general and administrative 
costs
sglt2 – sodiumglucose cotransporter 2
shionogi – shionogi  co ltd
sle – systemic lupus erythematosus
spc – supplementary protection certificate
specialty care – specific healthcare provided  
by medical specialists who do not generally have 
first contact with patients
spirogen – spirogen sàrl
teva – teva pharmaceuticals usa inc
tsr – total shareholder return being the total 
return on a share over a period of time including 
dividends reinvested
uk – united kingdom of great britain and 
northern ireland
uk corporate governance code – the uk 
corporate governance code published by the 
financial reporting council in september 2012 
that sets out standards of good practice in 
corporate governance for the uk
us – united states of america
us dollar us usd or  – references to the 
currency of the us
who – world health organization the united 
nations’ specialised agency for health
yhp – young health programme 
moderna therapeutics – moderna 
therapeutics inc
nda – a new drug application to the fda for 
approval to market a new medicine in the us
nme – new molecular entity
novartis – novartis pharma ag
nsaid – a nonsteroidal antiinflammatory drug
nsclc – nonsmall cell lung cancer
nsteacs – nonstelevation acute coronary 
syndromes
nyse – the new york stock exchange
nm – not meaningful
omthera – omthera pharmaceuticals inc 
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
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 such as european 
supplementary protection certificate spc 
paediatric extensions
pdl1 – an antiprogrammed deathligand 1
pearl therapeutics – pearl therapeutics inc
pfizer – pfizer inc
pharmacyclics – pharmacyclics inc
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 begin to determine the safety profile of the 
drug phase ii studies are typically conducted in 
small or medium sized groups of patients and 
can be divided into phase iia studies which tend 
to be designed to assess dosing requirements 
241 astrazeneca annual report and form 20f information 2014
additional information additional information
index
inflammation  see respiratory inflammation and autoimmunity
information technology 69
infrastructure 69
intangible assets 82 84 98 131 153 230231
intellectual property 68
interestbearing loans and borrowings 160
key performance indicators 20
leases 140 151 188
lifecycle of a medicine 12
litigation 183
lynparza 6 42
manufacturing and supply 56
market definitions 239
marketplace 14
movantikmoventig 49
myalept 9 38 188
oncology 40
operating profit 2 3 71 73 144
operational overview 2
other investments 140141 158
parthenon programme 37 38 51
patent expiries 201
patents see intellectual property
patient safety 5455
personalised healthcare 8 53
pfizer 4 9091 101
physician payments sunshine act 61
political donations 95
postretirement benefits 99 132 162
principal subsidiaries 189
product revenue information 3 220
property plant and equipment 77 78 151 230
provisions for liabilities and charges 162
purpose and values 11
regulatory requirements 16
related party transactions 188
relations with shareholders 90
relationships 65
remuneration 26 100
remuneration policy 113 116
research and development 52
reserves 169
respiratory inflammation and autoimmunity 44
responsible business 227
restructuring 75 144 162
results of operations 2013 229
results of operations 2014 73
risk 24 203
sales and marketing 59
sales by geographical area 220
sales by therapy area 3334 220
sarbanesoxley act 85
science committee 27 92
segment information 148
senior management set 30
share capital 169 194
share repurchase 81 169
shareholder distributions 5 80
shareholder information 232
strategic priorities 7 11 18
taxation 85 139 145
taxation information for shareholders 234236
therapy area overview 32
trade and other payables 78 140 161 231
trade and other receivables 78 140 159 231
trade marks 238
young health programme 6566
accounting policies 138 192
acquisitions 170
actavis 6 46
affordable care act 17 59 224
almirall 6 46 62 65 77 171
amgen 4647 80
amylin 62 144 154 170 185
animal research 55
annual general meeting 89 90 95 99 102104 116 120 237 
ardea 173174 
articles of association 237
astrazeneca at a glance 2
audit committee 26 91 96
audit committee report 96
bace inhibitor 9 50 79
bioethics 54 227
biologics 17 3233 56
bms 7 38 62 74 7778 100 170
board of directors 2629 86
brilintabrilique 22 35 3738 51
business model 1011
cambridge 9 64
capitalisation and shareholder return 80
cardiovascular and metabolic diseases 35
cash and cash equivalents 72 76 137 140 159
chairman’s statement 4
chief executive officer’s review 6
clinical trials 55
code of conduct 61 93 96
commitments and contingent liabilities 182
community investment 65
company history 237
compliance and internal audit services 93 203
consolidated statements 134
corporate information 237
corporate integrity agreement 61 96
corporate governance 26 86
definiens 8 42 53 77 171172
development pipeline 3 8 3334 3637 4041 4445 48 197
directors’ interest in shares 112
directors’ responsibility statement 129
diversity 6364 87
dividends 5 20 71 75 81 94 136 169 194 234
earnings per ordinary share 3 148
employee costs and share plans for employees 179
employees 62
ethics 54 61 9394 203204 227
environmental impact 5758 228
finance income and expense 145
financial instruments 145
financial position 2013 230
financial position 2014 77
financial review 70
financial risk management 81 174
financial statements 2014 129
financial summary 2
financials 2013 229
gender diversity 6364 87
geographical review 220
global pharmaceutical sales 15 16
glossary 239
group financial record 196
growth platforms 9 1819
healthy heart africa programme 67
human rights 63
independent auditor’s report 130
infection neuroscience and gastrointestinal 48
242 astrazeneca annual report and form 20f information 2014 additional information
important information for readers of this annual report
inclusion of reported performance 
core financial measures and constant 
exchange rate growth rates
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 2014 
obtained from ims health a leading supplier 
of statistical data to the pharmaceutical 
industry unless otherwise noted 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 2014 such data is not adjusted 
for medicaid and similar rebates except as 
otherwise stated these market share and 
industry data from ims health have been 
derived by comparing our sales revenue 
with 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 54 countries 
contained in the ims health 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 wwwastrazenecacom 
wwwastrazenecaclinicaltrialscom and 
wwwmedimmunecom 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
figures
figures in parentheses in tables and in the 
financial statements are used to represent 
negative numbers
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 advisers 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 
including among other things statements 
about expected revenues margins 
earnings per share or other financial or other 
measures 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 risk section from 
page 203 of this annual report nothing in 
this annual report should be construed as 
a profit forecast
243 astrazeneca annual report and form 20f information 2014
additional information additional information
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Summary:
 strategic report
chairman’s statement
dear shareholder
as 2014 finished it brought to a close  
an exceptional year for astrazeneca  
we ended it fully focused on the  
delivery of our strategy as an 
independent company this means 
turning our attractive growth prospects 
and a rapidly progressing pipeline  
into lifechanging medicines and  
value for shareholders
in his review on the following pages  
your chief executive officer outlines the 
progress we made during the year in 
delivering our strategic priorities i would  
like to concentrate on the context in  
which that progress was made and the 
implications for you our owners
clear decisions responsibly made
when pfizer approached astrazeneca 
during 2014 our responsibilities as directors 
were clear to act in a way that promoted 
the success of the company for the benefit 
of its shareholders in addition to assessing 
the value and deliverability of pfizer’s 
proposals we had to have regard  
to the longterm consequences of our 
decisions the interests of employees 
relationships with customers our impact  
on the wider community including patients 
and the reputation of the company at each 
stage of the process it was my duty as 
chairman to ensure we carried out our 
deliberations responsibly with those duties 
in mind after extensive review and 
discussions your board rejected pfizer’s 
various proposals we did so because
  the proposals fell short of astrazeneca’s 
value as an independent scienceled 
company
  astrazeneca had excellent momentum in 
the delivery of our clearly defined strategy 
underpinning the board’s confidence in 
our longterm revenue targets and 
profitability
  pfizer’s proposals brought uncertainty 
and risks for astrazeneca shareholders
in the wake of that decision i believe  
we have taken full advantage of the 
opportunity to galvanise employees and 
build on our demonstrable progress as  
an independent company 
a responsible business
of course acting responsibly is not 
restricted to the astrazeneca boardroom 
it applies to all our activities external 
recognition is particularly helpful in providing 
independent validation of our performance 
i was therefore pleased that we were once 
again listed in the dow jones sustainability 
world index in 2014 we also retained our 
listing on the european index for the seventh 
year running
in the biennial access to medicines index 
we were disappointed to find ourselves in 
15th position we remain determined to find 
new ways to improve access to healthcare 
i am confident that our healthy heart africa 
programme which aims to improve the lives 
of hypertensive patients across africa 
through increased education screening 
diagnosis and treatment will make an 
important contribution
improved access matters because our 
innovative medicines can make a global 
contribution to better health they help 
increase survival rates and improve quality 
of life for patients in important areas of 
medical need
32bn
 
net cash shareholder distributions 
increased by 9 actual growth to  
3242 million 2013 2979 million  
2012 5871 million
4 astrazeneca annual report and form 20f information 2014 revenue … was in line 
with our upgraded 
guidance and reflected the 
fact that the accelerating 
performance of our 
growth platforms more 
than offset the impact of 
loss of exclusivity”
loss of exclusivity
the loss of exclusivity referred to above and 
its timing has had and continues to have 
an impact on astrazeneca over the coming 
years this trend will continue as medicines 
such as nexium and crestor continue to 
lose exclusivity in key markets including the 
us and europe
of course loss of exclusivity is a normal 
part of an innovative medicine’s lifecycle 
it comes at the end of the period when a 
new medicine is safeguarded from being 
copied so that we can generate returns 
on the investment we have made a 
wellfunctioning intellectual property system 
of this type which rewards innovation is 
the principal economic safeguard in our 
industry it is why we commit significant 
resources to establishing and defending 
our patent protections 
the challenging environment 
continues
more generally we continue to face 
challenging market conditions while the 
world pharmaceutical market is growing 
and underlying demographic trends remain 
favourable to longterm growth many of the 
drivers of demand and supply in the sector 
are under pressure
on the demand side we face increased 
competition from generic drugs as some 
of the world’s most successful medicines 
come off patent in addition securing an 
appropriate level of reward for our medicines 
is becoming more difficult in the face of 
intense pricing pressures particularly in 
financial performance in 2014
revenue was up 3 to 26095 million 
which was in line with our upgraded 
guidance on an actual basis revenue  
was up 1 as a result of the negative 
impact of exchange rate movements  
core operating profit in 2014 was down 
13 to 6937 million while core eps  
were 428 down 8
our performance reflected the delayed 
launch of generic nexium esomeprazole  
in the us as well as the accelerating 
performance of our growth platforms which 
now contribute over half of our revenues 
taken together they more than offset the 
impact of loss of exclusivity our strong 
performance in emerging markets was a 
particular highlight with china becoming 
our second largest market
established markets facing rising healthcare 
costs on the supply side the industry faces 
an ongoing rd productivity challenge 
costs have risen significantly and while in 
2014 the fda approved the highest number 
of new medicines for 18 years there is still 
some way to go in improving the probability 
of success of our projects
return to shareholders
consistent with our progressive dividend 
policy to maintain or grow the dividend 
each year the board has recommended 
a second interim dividend of 190 per 
ordinary share this brings the dividend for 
the full year to 280 per ordinary share
the board regularly reviews its distribution 
policy and its overall financial strategy to 
strike a balance between the interests 
of the business financial creditors and 
shareholders we continue to target a 
strong investment grade credit rating 
outlook
as we look to the future we expect sales 
revenue to decline by mid singledigit 
percent at cer in 2015 consistent with  
our business model we will continue to 
seek externalisation revenue from 
collaborations and licensing select products 
and technologies core eps is expected  
to increase by low singledigit percent at 
cer this expectation involves a number of 
assumptions including the imminent launch 
of a nexium generic in the us market
appreciation
before closing and on behalf of the  
board i want to thank the employees  
of astrazeneca their outstanding efforts 
helped us achieve so much in 2014  
towards leading in science and returning to 
growth in particular i want to express my 
appreciation to pascal and all the members 
of the senior executive team for showing 
such inspirational leadership throughout  
a challenging year
finally i would like to thank all my fellow 
directors for the quality of their contributions 
and conscientiousness they brought to our 
discussions throughout an exceptionally 
busy 2014
leif johansson 
chairman
distributions to shareholders m 
2014 2013 2012
dividends 3521 3461 3665
proceeds from issue of shares 279 482 429
share repurchases
1
– – 2635
total 3242 2979 5871
dividend per ordinary share  
2014 2013 2012
dividend per ordinary share 280 280 280
dividend for 2014
 pence sek payment date
first interim dividend 090 531 620 15 september 2014
second interim dividend 190 1250 1562 23 march 2015
total 280 1781 2182
1
 the share repurchase programme was suspended effective 1 october 2012
5 astrazeneca annual report and form 20f information 2014
strategic report