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
November 18, 1999
Date of Report (Date of earliest event reported)
WARNER-LAMBERT COMPANY
(Exact name of registrant as specified in its charter)
Delaware
(State or other jurisdiction of incorporation)
1-3608 22-1598912
(Commission File Number) (IRS Employer Identification No.)
201 Tabor Road, Morris Plains, New Jersey 07950-2693
(Address of principal executive offices) (Zip Code)
(973) 540-2895
(Registrant's telephone number, including area code)
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.
Statements made in the Joint Analyst 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
WARNER-LAMBERT, WOLVERINE SUB CORP., A DELAWARE CORPORATION AND A WHOLLY
OWNED SUBSIDIARY OF AHP, AND AHP IN CONNECTION WITH THE TRANSACTIONS
CONTEMPLATED BY THE AGREEMENT AND PLAN OF MERGER, DATED AS OF NOVEMBER 3,
1999, AMONG WARNER-LAMBERT, WOLVERINE SUB CORP. AND AHP. 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 SHAREHOLDERS 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 AT WWW.SEC.GOV.
Item 7. Financial Statements and Exhibits
(c) Exhibits
(99.1) Joint Analyst Presentation
SIGNATURE
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.
WARNER-LAMBERT COMPANY
By: /s/ Rae G. Paltiel
--------------------------------
Name: Rae G. Paltiel
Title: Secretary
Dated: November 22, 1999
EXHIBIT INDEX
(99.1) Joint Analyst Presentation
EXHIBIT 99.1
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
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
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)
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
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
Therapeutic vaccines (e.g., conjugate and DNA vaccines for cancer viral
diseases)
Gene therapy
Vaccines
Protein therapeutics
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
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
<TABLE>
<CAPTION>
DOMINATING PRESENCE IN CNS COMBINING AHP PSYCHIATRIC AND
W-L NEUROLOGICAL APPROACHES
Warner-Lambert AHP Partners
<S> <C> <C> <C> <C>
Pain --Pregabalin --Minalrestat Opportunity
--NEURONTIN --EFFEXOR for new
combinations combination
(3) therapies
--NK1 receptor
antagonist
--Zenarestat
Sleep --Potential role of --SONATA Expansion of
gabapentinoids --Benzodiazepine current AHP
receptors presence
Anxiety/ --Pregabalin
depression --Igmesine --SSRI/5HT1a --CoCenSys Unique product
--Potential (Neurosteroids) positioning/
combinations -Millennium combination
with opportunities
EFFEXOR
Epilepsy/ --NMDA receptor --GKE-841 --Neurogen Optimize
Parkinson's antagonist (novel --CoCenSys approaches
--Pregabalin antiepileptic) --ASTA going
Medica forward
Basic research --Schizophrenia --Estrogen --Millennium Build
--Amyloid and therapies --Sequana/Axys capabilities
pathogenesis for --Neurocrine in chronic
--NK/dopamine Alzheimer's BioSciences neuro-
receptor --Neuro- degenerative
antagonists degenerative diseases
research
--Glutamate
transporters
--Serotonin
receptors
LEADERSHIP IN NEW BIOLOGICAL APPROACHES TO ONCOLOGY
Warner-Lambert AHP Partners
Cell cycle --W-L/Agouron --CCI --Onyx Industry leader
inhibition expertise (rapamycin in cell cycle
(cytostatics)- analog) regulation
--Discovery
research
Signal --MEK-1 --EKI-EGF --Genentech Novel
transduction --EGF receptor receptor applications of
kinase kinase genomics
--TRAIL
--ERA-923
Anti --Late-stage --Early stage Opportunity to
angio-genesis MMP MMPIs optimize
(prinomastat) MMP programs
Biologicals --Gene-therapy --Immunotherap --Onyx Unique
capabilities eutics (gene opportunities
--Onyx-015 (Immunex) delivery for novel
--flt-3 ligand vectors) therapeutics
(Mobist)
--IL-11
(Neumega)
Cytotoxics --Novel --Antibody New horizons in
cytotoxics conjugates cytotoxics
- CI-1006 (calicheamicin
- GART platform)
inhibitor --CYA-246
(cytokine
inducer)
</TABLE>
EXAMPLES OF CURRENT BIOTECH ALLIANCES PARTIAL LISTING
* Example areas of
upside synergy
Warner-Lambert American Home Products
Affymetrix* Lexicon Genetics Affymetrix* Imclone
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
Sciences Technologies
Compugen* Sciemagix Biogen RIBI Immunochem
Research/Corixa
GenVec Sequana Biostar Sibia
(AxyS)* Biosciences
Genzyme SynPhar Cambridge SIGA
Antibody
Technologies*
IRJ/Meristem* Third Wave CellTech
Technology
LeukoSite* Trega CoCenSys*
Unigene Genset SA
Xenova Icelandic
Biopharmaceutical
Group
World class roster of partnerships
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
<TABLE>
<CAPTION>
INNOVATIVE APPROACHES FOR PREVENTION AND TREATMENT OF INFECTIOUS
DISEASES
[chart and graphics containing the following information:]
Warner-Lambert AHP Partners
<S> <C> <C> <C> <C>
Respiratory --Rhinovirus --Vaccines --Aviron Leadership
(Agouron) - PREVNAR positions in
- AG-7088 - FLUMIST respiratory
- Oral - MENINGITEC infections,
rhinovirus - Respiratory vaccines
syncytial
virus(RSV)
- Parainfluenza
virus (PIV)
HIV --Protease --Apollon naked --Immune Complementary
inhibitors in DNA vaccines Response novel
development and --Immunex flt-3 Corporation therapeutics
marketed (Mobist) for HIV (e.g.
(VIRACEPT) --IL-12 and vaccines)
--Remune other
--nnRTIs in adjuvants
development
and marketed
(RESCRIPTOR)
Anti bacterials --Target --GAR - --Millennium Synergistic drug
discovery tetracycline for (basic discovery
for novel, broad resistant genomics) platforms
spectrum strains
compounds --Natural
(functional products
genomics) screening
Other --Discovery --Small molecules Broad spectrum
viral programs (e.g., (e.g., RSV) of activity in
diseases HCV) --Vaccines (e.g., anti-virals
HSV)
</TABLE>
<TABLE>
<CAPTION>
EXPANDING LEADERSHIP ACROSS MAJOR CV DISEASE AREAS
[chart and graphics containing the following information:]
<S> <C> <C> <C> <C>
Warner-Lambert AHP Partners
Risk Factors/ -- Dyslipidemia - Estrogen - Ligand Exploit cardio
endothelial expertise receptor protective
dysfunction/ - LIPITOR fran- expertise effects of
chronic CAD chise - SERMs estrogens/statins
(combinations) - PREMARIN
- CI-1027 family
HDL elevator
- Avasimibe
Thrombosis/ - Factor Xa - PSGL-1 (P- - Berlex/ Establish
acute inhibitors selectin) Schering strong
coronary (oral and - ENBREL AG acute CAD
syndrome IV) Factor VIIa - Cordorone presence
inhibitors follow-
- Adeno on
VEGF/BIOBypass
CHF - ACCUPRIL - ENBREL - Yama- Build robust
franchise - V2 antagonist nouchi CHF
- Conivaptan pipeline
(VI/V2
antagonist)
- Endothelin
antagonist
</TABLE>
ADDITIONAL OPPORTUNITIES FOR UPSIDE SYNERGIES
EXAMPLES
[graphic containing the following information:]
Women's health Diabetes Immunology/ Vaccines
inflammation
- --Estrogen --Complementary --MMPIs --New vaccine Upside in
modulation treatment of - W-L/ applications several
- W-L/ NIDDM Agouron - Oncology additional
Ligand - 3rd expertise - Anti- areas
collabora- generation - AHP/Immu- infectives
tion (3rd glitazone CI- nex - Athero-
generation 1037 expertise sclerosis
SERM) - PTP in inflam- (chlamydia)
- AHP Phsphatase mation - Basic research
experience inhibitor (patented in adjuvants
with - Zenarestat / class of
SERMs Minalrestat MMPs)
/ER-beta --RAPAMUNE
--ENBREL
--Anti IL-12
--VLA 4
inhibitor
(VLO-279)
<TABLE>
<CAPTION>
OTHER KEY AREAS OF PARTICIPATION EXAMPLES
[graphic containing the following information:]
<S> <C> <C> <C> <C>
Ophthalmology Gastrointestinal Tissue repair Hematology
- --W-L (AG- --AHP --AHP (rh BMP- --AHP Presence in
3340) - Protonix, 2) - REFACTO several other
- Age-related Zoton - Tendon - BENEFIX key
mascular (proton repair (hemophilia therapeutic
degenera- pump - Articular B) areas
tion inhibitors) cartilage - REFACTO+
- Diabetic --W-L repair
retinopathy - PD-183927 - Spine
(anti- - Ortho trauma
diarrheal) - Oral
- PD-254320 maxillo-
(gastric facial
lipase)
</TABLE>
IMPACT OF VALUE CREATION LEVERS
[graphic containing the following information:]
Highly Broadest technology - Novel innovation
complementary platforms/capabilities opportunities
activity in at in industry given
least 4 complementary
key therapeutic Focused and platforms
areas empowering - Greater
management development
philosophy efficiency
- Higher commercial
value of products
- Access to broad
Deep presence in web of discovery/
innovative development
World-class biopharmaceuticals houses
partnerships - Fundamentally
/collaborations higher NCE output
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 2,011 151 17 9 6
Wellcome
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 1,393 159 20 11 7
Home
Products
15 Warner- 910* 120 17 5 1
Lambert
* Excludes Agouron
Source: IMS 1998 Review
PHARMACEUTICALS: NEAR-TERM PIPELINE *Warner-Lambert
+AHP
[chart containing the following information:]
<TABLE>
<CAPTION>
ESTIMATED LAUNCH DATES
<S> <C> <C> <C> <C>
1999 2000 2001 2002
femhrt* - HRT for Lipitor* (Japan)- Pregabalin* - Zenarestat*
osteoporosis HMG CoA reductase Gabapentanoid/anti- - aldose
$100-200 inhibitor for convulsant for reductase
million cholesterol neuropathic pain, inhibitor for
reduction epilepsy (2002), diagetic neuropathy
$800-1,000 million and $400-500 million
anxiety disorders
(2000) $1,000-2,000
million
Refacto+ advanced Relpax* Migraine AG-3340*- MMPI for Igmesine* - anti-
recombinant Factor therapy prostate and non- depressant $500-800
VIII formulation (co-promotion small-cell lung million
for with Pfizer) $300- cancer
hemophilia $300-800 1,000 million) $800-1,000 million
million
Sonata+ - for Trimegestone+ - new AG-1549* - nnRTI Remune* - immuno-
insomnia progestin $400-500 for therapy for
$400-600 million million HIV/AIDS $250-300 HIV/AIDS
million $500-700 million
Rapamune+ - immuno- Protonix+ - proton Flu-Mist+ - AG-7088* -
suppressant for pump inhibitor for vaccine for rhinovirus
organ ulcers $250-500 influenza $450-600 (nasal) $500-1,000
transplants $900+ million million million
million
Meningitec+ - for Prevnar+ - vaccine CMA-676+ - Conivaptan* -
immunization for cytotoxic vasopressin
against 7 most common immunoconjugate for antagonist
meningitis $200 strains AML $100-200 $200-500 million
million of pneumococci million
$500-
1,000 million
Recombinant Human CCI-779+
Bone Morphogenic Cytostatic
Protein 2+ - for for solid tumors
bone repair $500- $200-300 million
1,000 million
Low-dose PremPro+ -
Osteoporosis/
menopause $300-600
million
Approved/Approvable
</TABLE>
Note: Figures are peak year sales estimates from analyst reports
THE AMERICANWARNER COMBINATION:
LEADERSHIP GROWTH RATES WITH FURTHER UPSIDE
$ Billions
[table containing the following information:]
CAGR
(1999-2002)
1999E 2000E 2001E 2002E Percent
------------- ------------ ------------- --------- ------------
Revenue $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 A 1% increase in Pharma and Consumer
in cost synergies revenues will increase net income
growth rate by approx. 1%
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
AMERICANWARNER REVENUE SYNERGY UPSIDES
2000
--LIPITOR (Japan) - Faster launch; 2 distribution channels
--ACCUPRIL - Increased sales force to drive sales
--SONATA - Increased sales force to drive sales
--EFFEXOR - Increased sales force to drive sales
--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
ILLUSTRATIVE VALUE CREATION
[table containing the following information:]
NEAR TERM
($200 million in 2000E Cost Synergies)
Market Capitalization
---------------------------------------------------------
AmericanWarner
illustrative
American Warner- American value
2000 P/E Home Lambert Warner 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
LONG TERM
($1.2 billion in 2002E Cost Synergies)
Market Capitalization
---------------------------------------------------------
AmericanWarner
illustrative
American Warner- American value
2000 P/E Home Lambert Warner creation
------- ---------- ---------- ----------- -------------
Pre-WSJ Article 29.6x $67 $69 $136 NA
Day of WSJ Article 33.0x $226 $90
2000 P/E Range 35.0 240 104
37.0 254 118
39.0 268 132
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
