AstraZeneca Annual Report and Form 20-F Information 2011

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Strategy and PerformanceOur performance in 2011 continuedPipelineMajor market approvals for Brilinta, Caprelsa, Axanum and Komboglyze TM ;Nexium and Faslodex 500mg approved in Japan; mixed results fordapagliflozin submission and disappointments on other pipeline products 2Deliver the businessGlobal revenue reduction of2% included 10% increase inEmerging Markets 4Product approvalsOne-two first major market approvals per year that support revenue target for 2014 of$3-5 3 billion from recent launches, pipeline and in-licensing2011: Brilinta approved in the US and Canada; Caprelsa (vandetanib) approvedin the US and positive CHMP opinion in the EU; Axanum approved in the EU,Komboglyze approved in the EU, Fluenz approved in the EU2010: Vimovo approved in the US and the EU; Brilique approved in the EU withComplete Response Letter received for Brilinta in the US; Kombiglyze XR approvedin the US; additional indications approved for Crestor in the US and the EU and forSeroquel XR in the EU2014 target reducedRegulatory submissionsMajor market submissions to support first approvals and line extensions for each newproduct, and continued marketing applications (first local authorisation and local lineextensions) in additional countries to drive growth2011: Nexium and Faslodex 500mg approved in Japan; dapagliflozin MAAvalidated by EMA; Complete Response Letter received from the FDA in the USrequesting additional clinical data2010: Dapagliflozin and vandetanib NDAs submitted in the US and the EU; Zinforo andAxanum MAAs submitted in the EUOn targetPhase III investment decisionsPhase III investment decisions that support value targets for new products 32011: Phase III trials started for NKTR-118 and initiation of Phase IIIprogramme for CAZ AVI2010: Phase III trials started for fostamatinib and TC-52142014 target reducedLicensing deals/acquisitions40% of our pipeline sourced from outside our laboratories2011:6 out of 9 Phase III/Registration projects (67%) sourced externally12 out of 24 Phase II projects (50%) sourced externally2010:6 out of 9 Phase III/Registration projects (67%) sourced externally11 out of 32 Phase II projects (34%) sourced externallyMet targetGrowth of key brandsDrive revenue growth of key brands thatretain exclusivity2011:Crestor +13%, Symbicort +11%,Seroquel XR +27%2010:Crestor +24%, Symbicort +20%,Seroquel XR +67%Met targetRevenue from new productlaunchesRevenue in 2014 in the range of$3-5 3 billion from recent launches,pipeline and in-licensing2011:$274mCombined revenue from Onglyza,Vimovo, Brilinta/Brilique, Caprelsaand Axanum2010: $74 millionCombined revenue from Onglyzaand Vimovo2014 target reducedEmerging Market sales25% of revenue in 2014 from EmergingMarkets business2011:17%17% of revenue fromEmerging Markets2010: 16% of revenue fromEmerging MarketsOn target2See Research and Development section from page 30 for more information.3Target revised to $2-4 billion in February 2012. See Medium-term planning assumptions section on page 22.4See Financial Review from page 82 and Therapy AreaReview from page 56 for more information.24 Strategy and Performance Our performance in 2011AstraZeneca Annual Report and Form 20-F Information 2011
Business shapePeopleResponsible businessMet targets with continuedefficiencies across theorganisation 5Gross marginMaintain gross margin in excess of 80%2011:82.2%2010: 81.2%Met targetCore SG&A costsImprove cost efficiencies and flexibilityin SG&A costs2011:1.5%1.5% reduction in Core SG&A costs2010: 2% reduction in Core SG&A costsMet targetImprovement in employeeengagement and senior leadercommunications 7Employee engagementAchieve global high performing normrating for employee engagement by 20142011:84%2010: 83% scoreOn targetLeadership communicationsFurther developing our leadership andmanagement capabilities2011:65%2010: 63% scoreMet targetAchieved highest ever assessmentscore for Dow Jones SustainabilityWorld and European Indexes 8DJSI rankingMaintain position within the DJSI WorldIndex comprising the top 10% of thelargest 2,500 companies2011:Top 7%2010: Top 8%Met targetConfirmed breaches of externalsales and marketing codes orregulationsReport confirmed breaches of externalcodes arising from external scrutiny andvoluntary disclosure by AstraZeneca2011: 17 confirmed breaches ofexternal sales and marketingregulations or codes globallyStrategy and PerformanceProcurement savingsProcurement savings across all functionsWork-life balanceAchieve an improvement in the work-lifebalance of our employees2010: 11 confirmed breaches of externalsales and marketing regulations orcodes globally2011:$487mSavings of $487 million2010: Savings of $541 millionMet targetR&D cost efficiencyReduced function costs across R&D tosupport focused R&D portfolio2011:67%2010: 65% scoreMet target7See People section from page 40 for more information.All percentages are the result of our global employee survey(FOCUS); percentage scores are measured on a like-for-likebasis using comparable questions from the FOCUS survey.Met targetNumber of audits conductedExpand risk-based programme ofresponsible procurement audits, acrossall supplier categories and geographies2011:751751 audits of 727 suppliers2011:$5.0bnAchieved Core R&D efficiencysavings with spend of $5.0 billion 62010: 48 audits of 42 suppliersMet target8See Responsible Business section from page 47 for moreinformation.2010: Achieved Core R&D efficiencysavings with spend of $4.2 billionMet target5See Financial Review from page 82 for more information.6See Research and Development section from page 30for more information.AstraZeneca Annual Report and Form 20-F Information 2011Strategy and Performance Our performance in 2011 25
Page 1 and 2: healthAstraZeneca Annual Reportand
Page 3 and 4: Financial summary$33.6bnSales down
Page 5 and 6: China: We announcedour decision to
Page 7 and 8: OverviewOperational overview7979 pr
Page 9 and 10: Chairman’s StatementI would like
Page 11 and 12: Chief Executive Officer’s ReviewA
Page 13 and 14: The process of getting a drug to ma
Page 15 and 16: OverviewnovationInnovation drives p
Page 17 and 18: Our Strategy and PerformanceMore pe
Page 19 and 20: Using the full range of innovative
Page 21 and 22: Our strategyMissionto make the most
Page 23 and 24: Our strategic priorities to 2014Our
Page 25: Our performance in 2011Our performa
Page 29 and 30: Strategy and PerformanceaborationIm
Page 31 and 32: Delivering our strategyOur strategy
Page 33 and 34: Development projects20112010 129342
Page 35 and 36: Investing in capabilitiesA core com
Page 37 and 38: Patent expiries for our key markete
Page 39 and 40: our Established Markets footprint i
Page 41 and 42: Product qualityWe are committed to
Page 43 and 44: We have a global approach, supporte
Page 45 and 46: ComplianceWe ensure a culture of et
Page 47 and 48: tegrityBusiness ReviewWe are dedica
Page 49 and 50: Delivering our strategyResponsible
Page 51 and 52: India has the fastest growing numbe
Page 53 and 54: ProtestsAstraZeneca acknowledges th
Page 55 and 56: Also in 2011, the DIHR in collabora
Page 57 and 58: healthcollaborationRaising breast c
Page 59 and 60: Pipeline by Therapy Area at 31 Dece
Page 62 and 63: Therapy Area ReviewIn September, we
Page 64 and 65: Therapy Area ReviewGastrointestinal
Page 66 and 67: Therapy Area ReviewInfectionTherapy
Page 68 and 69: Therapy Area ReviewIn the pipelineI
Page 70 and 71: Therapy Area ReviewOur financial pe
Page 72 and 73: Therapy Area ReviewOncologyTherapy
Page 74 and 75: Therapy Area Reviewendpoints of pro
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Therapy Area ReviewOur financial pe
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healthinnovationReducing the number
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Geographical ReviewUSAstraZeneca is
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Geographical ReviewEmerging Markets
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Disciplined execution of our strate
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Financial ReviewMeasuring performan
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Financial ReviewResults of operatio
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Financial ReviewFinancial position
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Financial ReviewCapitalisation and
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Financial ReviewResults of operatio
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Financial ReviewSensitivity analysi
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Financial Reviewover the performanc
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healthcollaborationFighting the ris
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Board of Directors and Senior Execu
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Board of Directors and Senior Execu
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Corporate Governance ReportOperatio
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Corporate Governance ReportThe Boar
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Corporate Governance ReportDuring 2
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Corporate Governance ReportBusiness
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Corporate Governance ReportPolitica
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Directors’ Remuneration ReportDav
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Directors’ Remuneration ReportVar
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Directors’ Remuneration ReportAdd
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Directors’ Remuneration ReportSum
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Directors’ Remuneration ReportSum
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Directors’ Remuneration ReportIn
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Directors’ Remuneration ReportPer
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Directors’ Remuneration ReportGai
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RiskManagement reporting and assura
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RiskCommercialisation and business
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RiskCommercialisation and business
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RiskSupply chain and delivery risks
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RiskEconomic and financial risks co
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Financial StatementsPreparation of
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Financial StatementsConsolidated St
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Financial StatementsConsolidated St
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Financial StatementsGroup Accountin
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Financial StatementsProperty, plant
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Financial StatementsNotes to the Gr
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Financial Statements3 Finance incom
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Financial Statements4 Taxation cont
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Financial Statements6 Segment infor
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Financial Statements9 Intangible as
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Financial Statements10 Other invest
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Financial Statements15 Financial in
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Financial Statements15 Financial in
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Financial Statements18 Post-retirem
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Financial Statements18 Post-retirem
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Financial Statements20 Share capita
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Financial Statements23 Financial ri
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Financial Statements23 Financial ri
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Financial Statements24 Employee cos
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Financial Statements25 Commitments
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Financial Statements26 LeasesTotal
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Financial StatementsIndependent Aud
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Financial StatementsCompany Account
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Financial Statements4 ReservesShare
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Financial StatementsGroup Financial
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Development PipelineNCEsPhase III/R
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Development PipelineNCEsPhases I an
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Shareholder Information> For shares
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Shareholder InformationDocuments on
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Corporate InformationHistory and de
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GlossaryThe following abbreviations
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Index2011 performance summary 23Acc
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Contact informationRegistered offic
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AstraZeneca Annual Report and Form 20-F Information 2011

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