Sales in the second quarter increased by 9 percent at CER, but were flat on an actual basis as a result of the negative impact of exchange rate movements. Sales benefited from strong growth of the Toprol-XL franchise in the US as a result of the market withdrawal by two generic competitors; adjusting for this, global sales increased by 6 percent. US sales were up 13 percent (6 percent excluding Toprol-XL). Group sales in the Rest of World were also up 6 percent. Sales in Established Markets were up 5 percent. Emerging Markets sales growth was 8 percent, lower than recent quarters but broadly in line with the Company's expectations. Doubledigit sales growth in Emerging Markets is anticipated for the full year.

Core operating profit in the second quarter was up 37 percent to $3,606 million. Approximately 60 percent of the Core operating profit increase was driven by higher sales; the balance from operational efficiencies and higher other income related to proceeds from the disposal of certain Nordic OTC products. Reported operating profit increased by 19 percent to $2,851 million; this growth rate was 18 percentage points lower than the growth in Core operating profit, reflecting provisions totalling $430 million with respect to various federal and state investigations and civil litigation matters relating to drug marketing and pricing practices taken in the second quarter 2009.

Core earnings per share in the second quarter were $1.64 compared with $1.25 in the second quarter 2008, a 37 percent increase at CER and in line with the growth in Core operating profit in the quarter. Reported earnings per share in the second quarter were up 10 percent to $1.18, after charging the legal provisions as well as higher restructuring and synergy costs.

First Half
Sales in the first half increased by 8 percent at CER, but were flat on an actual basis as a result of the negative impact of exchange rate movements. Sales in the US were up 10 percent (5 percent excluding the impact of Toprol-XL). Sales in the Rest of World were up 6 percent. Sales in Established Markets were up 4 percent. Sales in Emerging Markets increased by 11 percent.

Core operating profit increased by 28 percent to $6,968 million as a result of sales growth, operating efficiencies and higher other income compared with the first half of 2008. Reported operating profit was $6,014 million, an increase of 28 percent, the same as the growth in Core operating profit, as the negative impact of the legal provisions in the second quarter 2009 was somewhat offset by the Ethyol impairment that was charged in the first quarter 2008.

Core earnings per share for the first half were $3.22, an increase of 28 percent, in line with the growth in Core operating profit. Reported EPS increased by 24 percent to $2.66, reflecting the effects of the legal provisions and the Ethyol impairment noted above as well as higher restructuring and synergy costs.

Research and Development Update
A comprehensive update of the AstraZeneca R&D pipeline is presented in conjunction with this Half Year 2009 results announcement, and is available on the Company's website, www.astrazeneca.com, under information for investors.

The AstraZeneca pipeline now includes 142 projects, including 98 projects in the clinical phase of development. There are 10 NME projects currently in late stage development, either in Phase III or under regulatory review. Across the portfolio, since the last update on 29 January, 24 projects have successfully progressed to their next phase (including 11 molecules entering first human testing); 14 compounds have been added from Discovery research; 14 compounds have been withdrawn.

David Brennan, Chief Executive Officer, said: "Our business performance, in the context of tough global economic conditions, has been better than we anticipated. Good operating execution as well as the Toprol-XL benefit has led to a strong first half performance, which is reflected in our increased Core EPS target for the full year. Continued progress on the pipeline is evidenced by significant regulatory submissions and approvals since our first quarter report."