First clinical results for Astra's Perprazole

FIRST CLINICAL RESULTS FOR ASTRA'S PERPRAZOLE At a teleconference held today, Astra presented positive preliminary results from perprazole, Astra's new-generation proton pump inhibitor. An extensive clinical research program is ongoing with perprazole, involving over 11,000 patients. Preliminary results on short-term treatment of reflux esophagitis (inflammation or ulceration of the esophagus) show that perprazole ® ® demonstrates significant clinical superiority over Losec /Prilosec . For patients with severe reflux esophagitis, perprazole shows even greater benefits. "We expect that the results from treatment with perprazole will strengthen our strategy in the gastrointestinal area. The more successful we are with Losec/Prilosec, the broader base we will have when switching from Losec/Prilosec to perprazole," said Håkan Mogren, president and CEO of Astra. Astra also commented on the earnings impact resulting from the restructuring of its agreement with Merck on the U.S. market As announced earlier, Astra expects a positive earnings impact of more than 5 percent on the Group's net earnings starting in the year 2000, after an initial dilutive effect of approximately 5 percent in 1998 and 1999. For 1998 this means a dilution of approximately 10 percent during the second half. "The highest dilutive effect will be seen during the third quarter of 1998, and it will thereafter decrease gradually," said Astra's CFO, Åke Stavling. In response to a question during the teleconference, Åke Stavling also stated that the sales-related compensation to Merck is approximately 30 percent for Prilosec. The average compensation for other products is about half as much, with a gradual decrease over time. Finally, the development for Pulmicort in the U.S. was commented on. Sales of Pulmicort in the U.S. market during the third quarter of 1998 rose to USD 10 m., up from USD 4 m. during the second quarter. The market share of new prescriptions, measured in terms of treatment days, is currently estimated at 10 percent. "With the results from the first clinical studies of perprazole, our strengthened presence in the U.S. market, and the development of our newly launched products and coming projects, we have a strong base for future growth," said Håkan Mogren. Contact persons: Staffan Ternby, Vice President, PR & Information, Astra AB, +46 8 553 261 07 Mikael Widell, Press Officer, PR & Information, Astra AB, +46 8 553 264 28 Michael Olsson, Manager, Investor Relations, Astra AB, +46 8 553 259 52 Jörgen Winroth, Investor Relations U.S., Astra AB, +1 609 896 4148