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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.

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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 molecule’s 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 AstraZeneca’s long-term commitment to the UK and underscores the country’s 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

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manufacturing sites, this investment is a further signal of our long term commitment to the UK and to the North West. It’s a commitment reinforced by our manufacturing site in Speke, Merseyside, to supply the UK Government’s 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 UK’s key growth sectors. Further investment in such a strategic sector can underpin economic growth, sustain the UK’s life science ecosystem and ultimately strengthen the UK’s 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.