9 May 2014 FINAL

ASTRAZENECA SUBMISSION TO BUSINESS INNOVATION AND SKILLS COMMITTEE

About AstraZeneca

AstraZeneca is one of only a handful of biopharmaceutical companies to span the entire
value chain of a medicine from discovery, early- and late-stage development to the
manufacturing and distribution, and the commercialisation of primary care and specialty care
medicines that transform lives. Our primary focus is on three important areas of healthcare
where there is significant unmet medical need:

Cardiovascular disease and Diabetes;
Oncology;
Respiratory, Inflammation and Autoimmunity.

We are also active in the Infection, Neuroscience and Gastrointestinal disease areas.

Our mission is to push the boundaries of science to deliver life-changing medicines. We
believe the best way we can help patients is to be science-led, and we share this passion
with the scientific, healthcare and business community of the UK.

AstraZeneca plays a key role in the UK's life sciences community and the 'Golden Triangle'
of research in London, Cambridge and Oxford. We believe that our recent commitment to
establish our headquarters in Cambridge helps ensure the continued scientific leadership of
the UK as a whole and brings numerous social, academic and financial benefits.

In turn, the UK has played a vital role in our success and will continue to do so into the future
as it sits at the heart of our long-term strategy.

AstraZeneca has a long and deep-rooted heritage in this country, which is marked by
scientific innovation that stretches back over many decades, where ICI, Zeneca and
AstraZeneca scientists have worked closely with other leading scientists, both in the UK and
around the world to deliver generations of medicines that have transformed the lives of many
patients around the world. Today, we continue to be an integral part of the scientific
community in the UK. As well as having a large research and development organisation
across five sites, we also have some 200 active partnerships with academic, research-
funding and charitable organisations around the country. AstraZeneca also offers significant
educational opportunities for young scientists. Our 2012 programme saw around 100 PhD
scholarships and postdoctoral positions and industrial placements for around 70 students.

In addition to supporting the science and innovation base of the UK, we also make a
significant economic contribution in this country. AstraZeneca is a large employer of a highly
skilled workforce across five sites in the UK, and we create value by supporting a broader
base of approximately 30,000 jobs. We account for a significant share of the UK industry
R&D investment and export medicines around the world. It is a contribution we are
committed to making in the decades ahead.

A strategy focused on scientific innovation

We recognise that delivering the next generation of transformative medicines remains a
challenge. It is why we have adopted a clear strategy aimed at:

Achieving scientific leadership;
Returning to growth;
Being a great place to work.
9 May 2014 FINAL


We want AstraZeneca to be known for the strength of its science and we have a growing
and accelerating pipeline of potential new medicines. This includes 19 candidates for
registration trials in 2014-15, and we anticipate 4-5 entering final trial phase in 2014 alone.
Our next generation cancer medicines are generating particular excitement. One of our
most promising compounds, olaparib, for ovarian cancer, was developed here in the UK and
has been granted Priority Review by the US Food and Drug Administration (FDA). We are
also reviewing this molecules potential to impact gastric and breast cancer. Another of our
products, AZD9291, for non-small cell lung cancer, invented and being developed here in
our laboratories in the UK, has recently been accorded Breakthrough Therapy designation
by the FDA in recognition of the improved clinical benefits it can bring to patients.

Globally, for the last seven years we have maintained investment of over $4 billion a year in
R&D. We believe that our approach means we are well-positioned to take advantage of our
expertise in small molecules, biologics, immunotherapies and protein engineering. We are
also creating a porous research environment by fostering collaboration between scientists
both within and outside AstraZeneca. In a world where collaborations drive medical
progress, we partner with others around the world, including academia, governments,
industry, scientific organisations and patient groups.

We have confidence in our strategy to deliver value for our shareholders, employees, the
wider community and, of course, the people around the world who benefit from our life-
changing medicines.

Our commitment to the UK

A major part of that strategy is our commitment to the UK through employment, investment
in the business and innovation in the life sciences.

Economically, in 2011 we contributed 3.8 billion total Gross Value Added to the UK
economy. In 2012 we accounted for 1.8% (5.4 billion) of total UK export of goods.

In addition to our 6,700 staff, we have some 200 active collaborations with UK academic
institutions (including both research and student programmes) plus significant collaborations
with UK NGOs, charities and UK based biotechs. For example, with GSK and the University
of Manchester we created the Manchester Collaborative Centre for Inflammation Research
(MCCIR) to establish a translational research centre for inflammatory diseases in the UK. In
March this year, we announced a ground-breaking collaboration with the Medical Research
Council aimed at better understanding the mechanisms of human disease. The collaboration
will see the creation of a joint research facility at our new R&D centre in Cambridge.

In March 2013 we announced a planned investment of around 330 million in a purpose-built
R&D centre and corporate HQ in Cambridge. As a renowned centre for life sciences
innovation and a biosciences hotspot, Cambridge boasts an ecosystem of world-leading
academic research institutions, pre-eminent hospitals, leading-edge biotech companies,
scientific talent. The site is expected to house a skilled workforce of around 2,000 by 2016.
It will be our global centre of oncology research, as well as the base for our CEO and
leadership team. The decision reinforces AstraZenecas long-term commitment to the UK
and underscores the countrys global importance as a location for biopharmaceutical
research and development.

In November 2013 we announced investment of 120 million in a new facility at our
manufacturing centre in Macclesfield, Cheshire, to continue production of our cancer
medicine Zoladex. This secured 300 existing jobs at the site and is expected to create over
200 temporary jobs between now and early 2017. Having considered a number of global
9 May 2014 FINAL

manufacturing sites, this investment is a further signal of our long term commitment to the
UK and to the North West. Its a commitment reinforced by our manufacturing site in Speke,
Merseyside, to supply the UK Governments extended flu vaccination programme for
children.

The Future of Life Sciences in the UK

The UK boasts a network of truly world-class scientists and an environment that will better
enable life sciences to become one of the UKs key growth sectors. Further investment in
such a strategic sector can underpin economic growth, sustain the UKs life science
ecosystem and ultimately strengthen the UKs global competiveness.

We welcome the UK Life Sciences Strategy and the meaningful policies the Government has
put in place in recent years to encourage investment, such as the Biomedical Catalyst and
the Patent Box, and help make Britain an attractive location for biopharmaceutical research
and development.

Given the discovery and development of a medicine can take up to 10 or more years,
predictability and stability is a key success factor. AstraZeneca has been the beneficiary of
science-focused collaborations, mergers and acquisitions over many years. However, we
believe that excessive consolidation in the sector can lead to a decline in R&D productivity,
competitiveness and science skills, which is why it is right that the Committee should
examine the recent approach from Pfizer in the round. Industry experts have also expressed
the view that mega-mergers delay research leading to delays in getting innovative
medicines to the patients who need them.

Conclusion

We firmly believe in a bright future for the UK life science sector and we urge the Committee
to look at the evidence as to whether the proposed consolidation is in the best interests of
the sector. As a company with a proud UK heritage, we look forward to being a continued
UK success story.