-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, JbXFtsNl2saM/Dw/6wKhXBkPgqbWiI7Kj52G0OtQgUnv37RFCcgWslGnbUzRt/Wm V6U21ZEjTxN+wFF5I0hvsA== 0000893750-99-000636.txt : 19991122 0000893750-99-000636.hdr.sgml : 19991122 ACCESSION NUMBER: 0000893750-99-000636 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19991118 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19991119 FILER: COMPANY DATA: COMPANY CONFORMED NAME: AMERICAN HOME PRODUCTS CORP CENTRAL INDEX KEY: 0000005187 STANDARD INDUSTRIAL CLASSIFICATION: PHARMACEUTICAL PREPARATIONS [2834] IRS NUMBER: 132526821 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-01225 FILM NUMBER: 99761432 BUSINESS ADDRESS: STREET 1: 5 GIRALDA FARMS CITY: MADISON STATE: NJ ZIP: 07940 BUSINESS PHONE: 9736605000 MAIL ADDRESS: STREET 1: 5 GIRALDA FARMS CITY: MADISON STATE: NJ ZIP: 07940 8-K 1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 DATE OF REPORT (Date of earliest event reported): November 18, 1999 AMERICAN HOME PRODUCTS CORPORATION (Exact name of registrant as specified in its charter) Delaware 1-1225 13-2526821 (State or other jurisdiction (Commission File (IRS Employer of incorporation) Number) Identification No.) Five Giralda Farms, Madison, New Jersey 07940 (Address of Principal Executive Offices) (Zip Code) Registrant's telephone number, including area code: 973-660-5000 Item 5. Other Events A copy of the visual portion of the presentation provided with respect to the joint American Home Products Corporation ("AHP") and Warner- Lambert Company ("Warner-Lambert") meeting with analysts (the "Joint Analyst Presentation") is filed as Exhibit 99.1 hereto, and is incorporated herein by reference. A copy of certain other information (the "AHP Presentation") provided by AHP to analysts and other interested parties is filed as Exhibit 99.2 hereto, and is incorporated herein by reference. Statements made in the Joint Analyst Presentation or the AHP Presentation that state the intentions, beliefs, expectations or predictions of AHP, Warner-Lambert, or their respective managements for the future are forward-looking statements. It is important to note that both AHP's and Warner-Lambert's actual results could differ materially from those projected in such forward-looking statements. Information concerning factors that could cause actual results to differ materially from those in forward-looking statements is contained from time to time in the filings of each of AHP and Warner-Lambert with the U.S. Securities and Exchange Commission (the "SEC"). Copies of these filings may be obtained by contacting AHP or Warner-Lambert, as applicable, or the SEC. Investors are urged to read the joint proxy statement/prospectus including any amendments or supplements thereto (the "Joint Proxy Statement/Prospectus") which will be prepared by AHP, Wolverine Sub Corp., a Delaware corporation and a wholly owned subsidiary of AHP, and Warner-Lambert in connection with the transactions contemplated by the Agreement and Plan of Merger, dated as of November 3, 1999, among AHP, Wolverine Sub Corp. and Warner-Lambert. Investors are urged to read the Joint Proxy Statement/Prospectus because it will contain important information to investors. When completed, the Joint Proxy Statement/Prospectus will be mailed to the stockholders of each company. Copies of the Joint Proxy Statement/Prospectus may be obtained for free by contacting Warner-Lambert or AHP and at the SEC's web site www.sec.gov. Item 7. Financial Statements and Exhibits (c) Exhibits (99.1) Joint Analyst Presentation (99.2) AHP Presentation -2- Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. AMERICAN HOME PRODUCTS CORPORATION By: /s/ Paul J. Jones ------------------------------------------ Name: Paul J. Jones Title: Vice President and Comptroller (Duly Authorized Signatory and Chief Accounting Officer) Dated: November 19, 1999 -3- EXHIBIT INDEX (99.1) Joint Analyst Presentation (99.2) AHP Presentation -4- EX-99.1 2 AMERICANWARNER, INC. _______________________ Industry Leading R&D Capabilities _______________________ SUBSTANTIAL VALUE CREATION Opportunity for significant multiple expansion -- Significant new product growth - over 20 launches (1999-2002) -- Broadest platforms in industry (e.g., proteins, vaccines, small molecules) -- Broadest technology capabilities (e.g., combinatorial chemistry, structure-based drug design, and high-throughput screening) -- Leadership in OTC -- Significant synergy and strategic opportunities - Revenue acceleration - Cost synergies - Strategic options -- Substantial momentum-based on "best-of-the-best" merger philosophy Leadership growth rates -2- AmericanWarner AMERICANWARNER R&D -MANAGEMENT PHILOSOPHY -- Unified overarching strategy -- Single portfolio management process -- Single resource allocation system -- Clear implementation of project metrics -- Elimination of silos -- Incentives for collaboration Flexible, nimble organization to maximize opportunities for innovation and entrepreneurism -3- AmericanWarner A COMMANDING R&D PRESENCE [graphic containing the following information:] Powerful discovery platforms -- Small molecules -- Proteins -- Vaccines Over 20 sites across North America, Europe, and Asia R&D activity across all 7 major therapeutic areas Over $3.0 billion in Pharma R&D spend (2000E) Approx. 100 compounds in development Over 11,000 R&D personnel (2000E) -4- AmericanWarner CREATING VALUE IN AMERICANWARNER R&D [graphic containing the following information:] Highly complementary activity in at least 4 key therapeutic areas Broadest technology platforms/capabilities in industry Focused and empowering management philosophy World-class partnerships/collaborations Deep presence in innovative biopharmaceuticals Bringing the two companies together unlocks full potential of R&D organizations -5- AmericanWarner LEVERAGING TECHNOLOGY PLATFORMS/CAPABILITIES - EXAMPLES [graphic containing the following information:] Small molecule mimetics for proteins (e.g., Factor VIII) Small molecules HTS/informatics Protein therapeutics Combinational chemistry Genomics Structure-based drug design Protein therapeutics Protein therapeutics Gene therapy Vaccines -6- AmericanWarner LEADING-EDGE BIOTECH CAPABILITIES [graphic containing the following information:] Agouron -- Structure-based drug design/novel treatments for cancer, AIDS, and other serious diseases -- Leading HIV protease inhibitor (VIRACEPT) -- Key pipeline programs: Prinomastat, Remune, Rhinovirus, nnRTI Genetics Institute -- Recombinant DNA and genomics technologies/focus on hemophilia, tissue repair, immunology, and cancer -- Key products: BENEFIX (hemophilia B), REFACTO (hemophilia), NEUMEGA (thrombocytopenia), and BMP Immunex -- Immunological approaches to inflammation and oncology (e.g., flt-3) -- Key products include market-leading TNF inhibitor (ENBREL) and LEUKINE -- Development focus on cancer, asthma, rheumatoid arthritis, inflammation, and CV A biotech powerhouse stronger than any other in the industry -7- AmericanWarner THERAPEUTIC AREA COMPLEMENTARITY [graphic containing the following information:] Major opportunities for upside synergies -- CNA -- Oncology -- Anti-infectives -- Cardiovascular Additional opportunities for upside synergies -- Diabetes -- Women's health -- Immunology/inflammation -- Vaccines Other key areas of participation -- Ophthalmology -- Gastrointestinal -- Tissue repair -- Hematology Multiple opportunities for establishing/enhancing world-class positions in major therapeutic areas -8- AmericanWarner DOMINATING PRESENCE IN CNS COMBINING AHP PSYCHIATRIC AND W-L NEUROLOGICAL APPROACHES [chart containing the following information:] Warner-Lambert AHP Partners Pain --Pregabalin --Minalrestat Opportunity --NEURONTIN --EFEXOR for new combinations combination (3) therapies --NK1 receptor antagonist --Zenarestat Sleep --Potential --SONATA Expansion of role of --Benzodia- current AHP gabapenti- zepine presence noids receptors Anxiety/ --Pregabalin --SSRI/5HT1a --CoCenSys Unique depres- --Igmesine --Potential (Neuro- product sion combinations steroids) positioning/ with EFFEXOR --Millennium combination opportuni- ties Epilepsy/ --NMDA receptor --GKE-841 --Neurogen Optimize Parkin- antagonist (novel anti- --CoCenSys approaches son's --Pregabalin epileptic) --ASTA Medica going forward Basic --Schizophrenia --Estrogen --Millennium Build research --Amyloid and therapies for --Sequana/Axys capabilities pathogenesis Alzheimer's --Neurocrine in chronic --NK/dopamine --Neuro- BioSciences neuro- receptor degenerative degenerative antagonists research diseases --Glutamate transporters --Serotonin receptors -9- AmericanWarner LEADERSHIP IN NEW BIOLOGICAL APPROACHES TO ONCOLOGY [chart and graphics containing the following information:] Warner-Lambert AHP Partners Cell --W-L/Agouron --CCI (rapamycin --Onyx Industry cycle expertise alalog) leader inhibi- --Discovery research in cell tion cycle (cyto- regula- statics) tion Signal --MEK-1 --EKI-EGF receptor --Genentech Novel trans- --EGF receptor kinase applica- duction kinase --TRAIL tions of --ERA-923 genomics Anti- --Late-stage --Early stage MMPIs Oppor- angio- MMP (prinoma- tunity genesis stat) to optimize MMP programs Biologi- --Gene-therapy --Immunotherapeutics --Onyx Unique cals capabilities (Immunex) (gene oppor- --Onyx-015 --flt-3 ligand (Mobist) delivery tunities --IL-11 (Neumega) vectors) for novel thera- peutics Cyto- --Novel --Antibody conjugates New toxics cytotoxics (calicheamicin horizons - CI-1006 platform) in cyto- - GART --CYA-246 (cytokine toxics inhibitor inducer) -10- AmericanWarner EXAMPLES OF CURRENT BIOTECH ALLIANCES PARTIAL LISTING * Example areas of [chart and graphics containing the following upside synergy information:] Warner-Lambert American Home Products Affymetrix* Lexicon Affymetrix* Imclone Genetics Allergan Ligand* AlphaVax Millennium* Amersham* Metabolex* Aquila NanoSystems Aurora NanoSystems ArQule* Neurocrine Biosciences* Biosciences* BASF Onyx* Aviron Neurogen Berlex Peptide Bactex Q-One Biotech Therapeutics CoCenSys* Sanger Centre* BioDelivery Research Corp World Sciences Technologies class roster of Compugen* Sciemagix Biogen RIBI Immunochem partner- Research/Corixa ships GenVec Sequana Biostar Sibia Biosciences (AxyS)* Genzyme SynPhar Cambridge SIGA Antibody* Technologies IRJ/ Third Wave CellTech Meristem* Technology LeukoSite* Trega CoCenSys* Unigene Genset SA Xenova Icelandic Biopharmaceu- tical Group -11- AmericanWarner UPSIDE SYNERGIES THROUGH ALLIANCES EXAMPLES [graphic containing the following information:] ARQULE AXYS ALANEX Complementary combinatorial chemistry capabilities [graphic containing the following information:] AFFYMETRIX COMPUGEN MILLENNIUM/NETGENICS Complementary bioinformatics and chip design capabilities Multiple opportunities to leverage complementary alliances to build upon industry leading basic discovery capabilities --Combinatorial chemistry --Structural biology --Genomics --Informatics --High-throughput screening -12- AmericanWarner INNOVATIVE APPROACHES FOR PREVENTION AND TREATMENT OF INFECTIOUS DISEASES [chart and graphics containing the following information:] Warner-Lambert AHP Partners Respira- --Rhinovirus --Vaccines --Aviron Leader- tory (Agouron) - PREVNAR ship - AG-7088 - FLUMIST positions - Oral - MENINGITEC in rhinovirus - Respiratory respira- syncytial virus tory (RSV) infec- - Parainfluenza tions, virus (PIV) vaccines HIV --Protease --Apollon naked DNA --Immune Comple- inhibitors in vaccines Response mentary development --Immunex flt-3 Corpora- novel and marketed (Mobist) tion thera- (VIRACEPT) --IL-12 and other peutics --Remune adjuvants for HIV --nnRTIs in (e.g. development vaccines) and marketed (RESCRIPTOR) Anti- --Target --GAR - tetracycline --Millen- Syner- bacteri- discovery for for resistant nium gistic drug als novel, broad strains (basic discovery spectrum --Natural products genomics) platforms compounds screening (functional genomics) Other --Discovery --Small molecules Broad viral programs (e.g., RSV) spectrum diseases (e.g., HCV) --Vaccines (e.g., HSV) of activity in anti- virals -13- AmericanWarner EXPANDING LEADERSHIP ACROSS MAJOR CV DISEASE AREAS [chart and graphics containing the following information:] Warner-Lambert AHP Partners Risk --Dyslipidemia --Estrogen --Ligand Exploit factors/ expertise receptor cardio- endo- - LIPITOR expertise protective thelial franchise - SERMs effects of dysfunc- (combina- - PREMARIN estrogens/ tion/ tions) family statins chronic - CI-1027 HDL CAD elevator --Avasimibe Thrombo- --Factor Xa --PSGL-1 (P- --Berlex/ Establish sis/acute inhibitors selectin) Schering strong coronary (oral and IV) --ENBREL AG acute CAD syndrome --Factor VIIa --Cordorone presence inhibitors follow-on --Adeno VEGF/BIOBypass CHF --ACCUPRIL --ENBREL --Yamanouchi Build franchise --V2 antagonist robust CHF --Conivaptan pipeline (V1/V2 antagonist) --Endothelin antagonist -14- AmericanWarner ADDITIONAL OPPORTUNITIES FOR UPSIDE SYNERGIES [graphic containing the following information:] EXAMPLES Women's Immunology/ health Diabetes inflammation Vaccines --Estrogen --Complementary --MMPIs --New vaccine modulation treatment of - W-L/ applications - W-L/ NIDDM Agouron - Oncology Upside Ligand - 3rd expertise - Anti- in collabo- generation - AHP/ infect- several ration glitazone CI- Immunex ives addi- (3rd 1037 expertise - Athero- tional genera- - PTP in sclerosis areas tion Phosphatase inflamma- (chlamy- SERM) inhibitor tion dia) - AHP - Zenarestat/ (patented - Basic experi- Minalrestat class of research ence MMPs) in with --RAPAMUNE adjuvants SERMs/ --ENBREL ER-beta --Anti IL-12 --VLA 4 inhibitor (VLO-279) -15- AmericanWarner OTHER KEY AREAS OF PARTICIPATION EXAMPLES [graphic containing the following information:] Ophthalmology Gastrointestinal Tissue repair Hematology --W-L --AHP --AHP (rh --AHP (AG-3340) - Protonix, BMP-2) - REFACTO Presence - Age- Zoton (proton - Tendon - BENEFIX in related pump repair (hemo- several macular inhibitors) - Articular philia other key degener- --W-L cartilage B) thera- ation - PD-183927 repair - REFACTO+ peutic - Diabetic (anti- - Spine areas retino- diarrheal) - Ortho pathy - PD-254320 trauma (gastric - Oral- lipase) maxillo- facial -16- AmericanWarner IMPACT OF VALUE CREATION LEVERS [graphic containing the following information:] Highly Broadest technology --Novel innovation complementary platforms/ opportunities activity in at capabilities in given least 4 key industry complementary therapeutic platforms areas --Greater development Focused and efficiency empowering --Higher management commercial value philosophy of products --Access to broad web of discovery/ World-class Deep presence in development partnerships/ innovative houses collaborations biopharmaceuticals --Fundamentally higher NCE output -17- AmericanWarner R&D EXPENDITURES AND PIPELINE [table containing the following information:]
1998 R&D Number of products in Pipeline -------------- ------------------------------------------------------ Rank Corporation Spend Total Ph. II Ph. III Pre-Mkt ---- ---------------------- -------------- ------------------- ---------------- ------------- ----------------- 1 Aventis 2,529 171 27 13 12 2 Novartis 1,922 110 23 15 4 3 Glaxo Wellcome 2,011 151 17 9 6 4 AstraZeneca 2,022 98 23 4 4 5 Merck 1,821 128 11 5 2 6 BMS 1,340 91 14 8 7 7 Pfizer 2,000 85 13 6 4 8 J&J 1,350 70 12 12 7 9 Roche 2,020 124 22 17 3 10 American Home Products 1,393 159 20 11 7 15 Warner-Lambert 910* 120 17 5 1 * Excludes Agouron Source: IMS 1998 Review
-18- AmericanWarner PHARMACEUTICALS: NEAR-TERM PIPELINE Warner-Lambert AHP [chart containing the following information:] ESTIMATED LAUNCH DATES 1999 2000 2001 2002 ------------------ ------------ --------------------- -------------- femhrt* - HRT for Lipitor Pregabalin - Zenarestat - osteoporosis $100- (Japan) - HMG Gabapentanoid/anti- aldose 200 million CoA reductase convulsant for reductase inhibitor for neuropathic pain, inhibitor for cholesterol epilepsy (2002), and diagetic reduction anxiety disorders neuropathy $800-1,000 (2000) $1,000-2,000 $400-500 million million million Refacto* - advanced Relpax* - AG-3340 - MMPI for Igmesine - recombinant Factor Migraine prostate and non- anti-depressant VIII formulation therapy (co- small-cell lung cancer $500-800 for hemophilia promotion $800-1,000 million million $300-800 million with Pfizer) $300-1,000 million Sonata* - for Trimegestone AG-1549 - nnRTI for Remune - insomnia $400-600 - new HIV/AIDS $250-300 immuno-therapy million progestin million for HIV/AIDS $400-500 $500-700 million million Rapamune* - immuno- Protonix* - FluMist - vaccine for AG-7088 - suppressant for proton pump influenza $450-600 rhinovirus organ transplants inhibitor for million (nasal) $500- $900+ million ulcers $250- 1,000 million 500 million Meningitec - for Prevnar - CMA-676 - cytotoxic Conivaptan - immunization vaccine for 7 immunoconjugate for vasopressin against meningitis most common AML $100-200 million antagonist $200 million strains of $200-500 pneumococci million $500-1,000 million Recombinant Human Bone CC1-779 - Morphogenic Protein 2 Cytostatic for - for bone repair solid tumors $500-1,000 million $200-300 million Low-dose PremPro - Osteoporosis/ menopause $300- 600 million * Approved/Approvable Note: Figures are peak year sales estimates from analyst reports -19- AmericanWarner THE AMERICANWARNER COMBINATION: LEADERSHIP GROWTH RATES WITH FURTHER UPSIDE $ Billions [table containing the following information:]
CAGR (1999-2002) 1999E 2000E 2001E 2002E Percent ------------------- -------------- ------------------- ------------------- -------------------------- Revenues $26.3 bn $29.7 bn $32.8 bn $36.1 bn 11% - - Pharma 17.2 19.7 22.0 24.5 13% - - Consumer 4.4 4.9 5.3 5.7 9% Net income 3.9 4.8 5.7 6.8 20% EPS 1.48 1.79 2.15 2.55 20% 20% net income growth with $1.2 billion in cost A 1% increase in Pharma and Consumer revenues will increase net income synergies growth rate by ~1%
-20- AmericanWarner REVENUE SYNERGY DRIVERS - TOP MARKET PRESENCE --High profile sales identities (e.g., Wyeth- Ayerst, Lederle, Genetics Institute, Immunex, Parke-Davis, Warner Lambert, Sankyo-Parke Davis, Agouron) --Combined global sales force of ~14,500 --Combined U.S. sales force of ~6,500 Significant upside from complementary capabilities -21- AmericanWarner AMERICANWARNER REVENUE SYNERGY UPSIDES 2000 --LIPITOR (Japan) - faster launch; 2 distribution channels --ACCUPRIL / --SONATA / Increased sales force to drive sales --EFFEXOR / --PROTONIX launch U.S. 2001 --Pregabalin broad launch - Epilepsy - Pain - Psychiatry --AG-3340 (Prinomastat) - broader and deeper oncology launch --Gabapentin generic through AHP 2002 --Zenarestat launch --Igmesine launch -22- AmericanWarner ILLUSTRATIVE VALUE CREATION [table containing the following information:]
NEAR TERM ($200 million in 2000E Cost Synergies) Market capitalization --------------------------------------------- AmericanWarner 2000 American Warner- American illustrative P/E Home Lambert Warner value creation ------------ ----------- -------------- -------------- ---------------- Pre-WSJ Article 29.6x $67 $69 $136 NA Day of WSJ Article 32.3x 74 75 149 $13 2000 P/E Range 33.0x $157 $21 35.0 166 30 37.0 176 40 39.0 185 49 [table containing the following information: LONG TERM ($1.2 billion in 2002E Cost Synergies) Market Capitalization --------------------------------------------- AmericanWarner American Warner- American illustrative P/E Home Lambert Warner value creation ------------ ----------- -------------- ------------- --------------- Pre-WSJ Article 29.6x $67 $69 $136 NA P/E Range 33.0x $226 $ 90 35.0 240 104 37.0 254 118 39.0 268 132
-23- AmericanWarner AMERICANWARNER WOULD COMMAND A STRONG MARKET PRESENCE - --#1 company in pharmaceutical sales - Diversified product portfolio (i.e., less dependence on LIPITOR) - Full late-stage and early-stage pipeline - Superior technology platforms including vaccines, recombinant proteins, hormone therapeutics and gene therapy - Broad therapeutic area presence (e.g., women's health, cardiovascular, oncology, inflammation, CNS) - --#1 company in OTC sales - Category leadership (e.g., nutritionals, cough/cold) - Enhanced global reach -24- AmericanWarner EX-99.2 3 Biopharmaceutics - 1999 Est. Revenues AHP Pfizer --- ------ Enbrel $350M None Leukine $30M BeneFIX $145M Neumega $52M ReFacto $50M Meningitec $60M Other Vaccines $315M ------- Total $1,002M Total does not include Alliance revenues of $584 M Biopharmaceutics - Share of Revenue AHP --- [pie chart containing the following information:] 1999 2002 --------------- --------------- Biotech 12% 24% - ----------------- Source: Strategic Plan/Budget -2- Biopharmaceutics - Share of Revenue Pfizer ------ [pie chart containing the following information:] 1999 2002 --------------- --------------- Biotech 0% 1% - ----------------- Source: Analysts Forecasts -3- Biopharmaceutics - Commercial Alliances AHP --- Immunex - - Majority shareholder - - Enbrel - - Leukine Genetics Institute - - Wholly owned - - BeneFIX (Baxter) - - ReFacto - - Neumega - - BMP-2 (Sofamor Danek, Yamanouchi) - - EPO (out-licensed) - - Recombinate (out-licensed) Pfizer ------ Inhaled Therapeutic & Aventis - - Inhaled Insulin -4- AHP Biopharmaceutics - Product Flow IND Track - - Combination Vaccines - - TRAIL - - rh IL-11 (NI) - - Group B Strep vaccine - - Anti-B7 Abs Phase I - - Gonococcal Vaccine - - HSV vaccine - - GeneVax (Registered Trademark)-HIV - - GeneVax (Registered Trademark)-HSV - - NTHi/Moraxella vaccine - - Anti-IL-12 - - rPSGL-lg - - sIL-1R - - RSV/PIV vaccine Phase II - - RSV Vaccines - - AVREND (Trademark) - - MOBIST (Trademark) - - NUVANCE (Trademark) - - rh BMP-2 (NI) - - rh IL-11 (NI) Phase III - - rh BMP-2 - - FluMist (Trademark) - - rh IL-11 (Crohn's) - - Pneumococcal Conjugate-9 valent - - ENBREL (Registered Trademark)-CHF - - LUEKINE (Registered Trademark) (NI) Pre-Registration - - PREVNAR (Trademark) - - ReFacto (Registered Trademark) (US) - - CMA-676 -5- Approved/Launched - - ReFacto (EU) - - ENBREL (Registered Trademark) - - BeneFIX (Trademark) - - NEUMEGA (Registered Trademark) rhIL-11 - - MENINGITEC (Trademark) - - LEUKINE (Registered Trademark) - - Acel-Imune (Registered Trademark) - - HibTITER (Registered Trademark) - - Pnu-Imune (Registered Trademark) - - FluShield (Registered Trademark) - - Other Vaccines - - Erythropoietin - - RECOMBINATE (Registered Trademark) - ----------------- [FN] (NI) - new indications out licensed -6- Pfizer Biopharmaceutics - Product Flow IND Track Phase I Phase II - - rNIF (UK-279,276) Phase III - - Inhaled insulin Pre-Registration Approved/Launched -7- R&D Facilities Focused Primarily on Biopharmaceutics AHP Pfizer - --- ------ - - Cambridge, MA - None - - Andover, MA - - Pearl River, NY - - Rochester, NY - - Seattle, WA -8- New Product Revenues Share of 2002 sales from products launched in 1999 or later [pie chart containing the following information:] AHP Pfizer --------------- --------------- New Products 18% 9% - ----------------- [FN] Excludes alliance revenues -9- Near-Term Patent Expirations Major products losing exclusivity between 2000 and 2007 [time line containing the following information:] 2000 Cardua ($750M+) 2001 2002 2003 Procardia XL ($250M+) 2004 Diflucan ($1,000M+) 2005 Zoton ($250M+), Zosyn ($600M+), Zithromax ($2,500M+), Zoloft ($3,000M+) 2006 2007 Effexor ($2,000M+), Norvasc ($5,000M+), Zyrtec ($1,000M+) PFE products in white AHP products in yellow -10- Strength of Near-Term Pipeline Established Launch Dates (Peak Year Revenue to Company in $M) 1999 2000 2001 2002 -------------- -------------- -------------- -------------- AHP ReFacto Trimegestone FluMist CCI-779 ($300-800) ($400-500) ($450-600) ($200-300) Sonata Protonix CMA-676 Low dose ($400-600) ($250-500) ($100-200) PremPro Rapamune Prevnar rh BMP-2 ($300-600) ($900+) ($500-1B) ($500-1B) Meningitec ($200) Pfizer Tikosyn Zeldox Inhaled ($100-150) ($200-500) insulin* Relpax Vfend ($500+) ($200-400) ($250-750) Valdecoxib* ($250-600) - ------------------ [FN] Represents co-marketed or co-promoted product, with Pfizer's or AHP's revenue share Revenue source: October-November 1999 analyst estimates -11- Near-Term Pipeline Revenue Potential Peak Year Sales Potential for Launch Cohorts [graphic containing the following information:] 1999 2000 2001 2002 Total ------------ ------------ ------------ ------------ ------------ AHP 2150 1575 1425 700 5850 Pfizer 0 425 1275 500 2200 - ----------------- PYS represent Pfizer's or AHP's peak year revenue share Revenue source: October-November 1999 analyst estimates -12- Pipelines by Phase of Development AHP --------------------- Number of Projects --------------------- IND Track 7 Phase I 9 Phase II 13 Phase III 14 Review 7 Total 50 Pfizer --------------------- Number of Projects --------------------- IND Track and Phase I 13 Phase II 8 Phase III 4 Review 2 Total 27 PFE projects in red AHP launches in yellow Source: Company data -13- -----END PRIVACY-ENHANCED MESSAGE-----