Filed by Warner-Lambert Company
pursuant to Rule 425 under the Securities Act of 1933
and deemed filed pursuant Rule 14a-12
of the Securities Exchange Act of 1934
Commission File No: 001-3608
Subject Company: Warner-Lambert Company
THE FOLLOWING IS THE VISUAL PORTION OF THE PRESENTATION MADE BY
ANTHONY WILD, PRESIDENT - PHARMACEUTICAL SECTOR OF WARNER-LAMBERT, TO
CERTAIN MEMBERS OF WARNER-LAMBERT'S EUROPEAN AND ASIAN MANAGEMENT TEAMS.
Warner-Lambert / Parke-Davis
Managing the challenges and opportunities ahead
Europe and Asia Management Briefing
London, 11 February 2000
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Richard de Souza
President, of Parke-Davis
Europe / Asia
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Introduction
o Goals for today
o Help you understand the current situation
o Clarify your role in the mid term
o Support you in maintaining business performance
o Answer your key questions
o 12 noon finish, lunch, depart
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Tony Wild
President,
Pharmaceutical Sector of Warner-Lambert
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Parke-Davis
o Our past
o Our present
o The transition
o Our future
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Pride in our past
o Our growth
o Our commitment to innovation
o Our people and culture
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The present
o Global trends
o Need for a partner
o Limited portfolio of products
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Our strategic decision drivers
o Growing dependence on Lipitor
o Neurontin US patent expires
o potential $1bn loss
o Pregabalin and Prinomastat
o product development delays
o Flat share price
o Wall street concerns
o Pooling of interests window to be closed
o American Home Products was available
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Pfizer's strategic decision drivers
o Increasing concern on new product pipeline
o Norvasc patent to expire at same time as Lipitor agreement ends
o A stronger Warner-Lambert may not be a good partner
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The last three months
o November - sell AmericanWarner concept
o December - bolster legal defences
o December / January - leverage legal 'victory' in Delaware to increase
bid price
o Forced to accept inevitability of gap between AHP offer and Pfizer bid
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Transition to new Pfizer Inc
o 30 days until an SEC ruling on the use of pooling accounting
o EC Monopolies review - the rate limiting step
o Transition steering committee established to steer, not drive
o Operational, line managers will drive the transition
o You'll be part of the solution:
"We trust the judgement and experience of our line people"
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Transition steering committee
Pfizer: Dr McKinnell (C.O.O and C.E.O. elect) - co-chair
Ms Katen (US head and Global Pharmaceuticals head elect)
Dr Niblack (Vice Chairman and Chief Scientific Officer)
Mr Shedlarz, CFO
Warner Lambert: Dr Tony Wild - President, Pharma Sector - co-chair
Ernie Larini - CFO
Dr Peter Corr - President, Research
Morgan Morton - President, Consumer Health Sector
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Preliminary meetings
WARNER LAMBERT PFIZER
R&D Dr. Peter Corr Dr. J. Niblack
US Operations Maurice Renshaw K. Katen
Europe / CEE Richard de Souza H.O. Conner
Asia / Africa / ME Richard de Souza M. Sidi Said
Latin America Raul Oliva I. Read
Canada A.H. Wild I. Read
Japan A. H. Wild M. Sidi Said
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Preliminary meetings
WARNER LAMBERT PFIZER
Global Marketing Mike Hofffman P. Kelly
Manufacturing Carl Wheeldon J. Mitchell
Legal Greg Johnson P. Miller
Finance Ernie Larini D. Shedlarz
Human Resources Ray Fino / Bernardo Tafur B. Robinson / R. Norton
Corporate Affairs Dick Keelty L. Clemente
Consumer Operations Morgan Morton A. Bachmann
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World's Second Largest Pharma Company
The Drugs Giants (sales in billions and % market share)
Sales % Market Share
Glaxo SmithKline 21.0 7.0%
Pfizer / Warner-Lambert 18.7 6.5%
AstraZeneca 12.6 4.4%
Merck & Co 12.5 4.4%
Aventis 12.1 4.2%
Novartis 11.5 4.0%
Bristol-Myers Squibb 11.3 3.9%
Johnson & Johnson 10.3 3.6%
Roche 8.9 3.1%
American Home Products 8.5 3.0%
[Bar graph]
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US / World-wide:
o US: #1, World-wide: #2
o Fastest-growing major pharmaceutical company
o Largest R&D budget in the industry
o PD name will continue to be used
o Integration teams headed by both companies
o Drawing the best from both
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How about in Europe?
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From a second division player...
Europe Big 7
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Ranking Company Mat Q3 1999 Mat Growth
($'000)
1 Astrazeneca 3,469,246 11%
2 Novartis 2,909,040 4%
3 Glaxo Wellcome 2,866,811 4%
4 Merck & Co. 2,613,043 9%
5 Roche 2,232,673 10%
6 Hoechst 2,133,565 7%
7 Rhone Poulenc 1,967,497 3%
8 Sanofi-Synthelabo 1,888,000 7%
9 Smithkline Beecham 1,765,890 4%
10 PFIZER 1,682,631 19%
11 Bayer 1,475,597 6%
12 Johnson & Johnson 1,382,442 7%
13 Bristol-Myers Squibb 1,504,230 5%
14 American Home 1,295,458 8%
15 WARNER-LAMBERT 1,264,938 26%
(NB: Data covers all products which can be sold by prescription. Will
include some OTC)
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...to high in the first division
Europe Big 7
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Ranking Company Mat Q3 1999 Mat Growth
($'000)
1 Glaxo-Smithkline 4,632,701 4%
2 Astrazeneca 3,469,246 11%
3 PFIZER + WL 2,947,569 22%
4 Novartis 2,909,040 4%
5 Merck & Co. 2,613,043 9%
6 Roche 2,232,673 10%
7 Hoechst 2,133,565 7%
8 Rhone Poulenc 1,967,497 3%
9 Sanofi-Synthelabo 1,888,000 7%
10 Bristol-Myers Squibb 1,504,230 5%
11 Bayer 1,475,597 6%
12 Johnson & Johnson 1,382,442 7%
13 American Home 1,295,458 8%
14 Lilly 1,216,769 15%
15 Boehringer Ingel 1,124,468 6%
(NB: Data covers all products which can be sold by prescription. Will
include some OTC)
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How about in Asia?
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From a second division player...
Asia
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Ranking Company Mat Q3 1999 Mat Growth
($'000)
1 Glaxo Wellcome 144,363 6%
2 United Labs 128,903 2%
3 Astrazeneca 123,511 18%
4 Novartis 111,139 8%
5 Bristol-Myers Squibb 105,251 14%
6 American Home 101,475 16%
7 PFIZER 94,547 49%
8 Smithkline Beecham 93,568 8%
9 Roche 90,558 11%
10 Johnson & Johnson 84,731 13%
11 Merck & Co. 84,689 24%
12 Boehringer Ingel 72,101 14%
13 Yung Shin 69,376 32%
14 Lilly 61,920 29%
15 Abbott 59,554 8%
20 WARNER-LAMBERT 53,973 11%
Countries included: Philippines, Singapore, Thailand, Taiwan and Indonesia
Source: IMS3Q 1999 Data
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...to high in the first division
Asia
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Ranking Company Mat Q3 1999 Mat Growth
($'000)
1 Glaxo-Smithkline 237,931 7%
2 PFIZER-WL 148,520 32%
3 United Labs 128,903 2%
4 Astrazeneca 123,511 18%
8 Hoechst-Rhone Poulenc 112,693 14%
4 Novartis 111,139 8%
5 Bristol-Myers Squibb 105,251 14%
6 American Home 101,475 16%
9 Roche 90,558 11%
10 Johnson & Johnson 84,731 13%
11 Merck & Co. 84,689 24%
12 Boehringer Ingel 72,101 14%
13 Yung Shin 69,376 32%
14 Lilly 61,920 29%
15 Abbott 59,554 8%
Includes consolidated Glaxo-Smithkline, Pfizer-WL, and Hoechst-Rhone
Poulenc
Source: IMS3Q 1999 Data
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Relative strengths in Asian markets
COUNTRY PFIZER PARKE-DAVIS
Philippines X
Thailand X
Taiwan X
Indonesia X
Malaysia X
Singapore X
Hong Kong X
Korea X
China X
Pakistan X
India X
'X' indicates stronger company
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Good fit with current portfolios in CVS...
Key Products MAT Q3 '99 Sales Sales Growth
MAT Q3 '99: >$1M $M '99 vs. '98
CARDIOVASCULAR
Lipitor C10A1 492 +121%
Accupro/Accuretic 124 +6%
C9A/C9B
Dilzem C8A 32 -5%
Lopid C10A2 26 -20%
Hepathrombin C5B 2 -11%
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Norvasc C8A 602 +11%
Cardura C2A 178 +16%
Zarator C10A1 45 +89%
Minipress C2A 25 -7%
Mono Mack Iso Mack C1E 20 -12%
Minizide C2B 1 -13%
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...and CNS
Key Products MAT Q3 '99 Sales Sales Growth
MAT Q3 '99: >$1M $M '99 vs. '98
CENTRAL NERVOUS SYSTEM
Valoron/Valtran N2B 58 -7%
Neurontin N3A 57 +47%
Demetrin N5C 23 -4%
Ponstan N2B 4 -11%
Cognex N7D 4 -41%
Carbolithium N6A 3 0%
Ketalar N1A 1 +24%
Zarontin N3A 1 +1%
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Zoloft N6A 164 +8%
Aricent N7D 27 +162%
Migraleve 7 +1%
Sineguan N6A 3 -12%
Clozan N5C 2 +2%
Prontopyrin N2B 1 -3%
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Widens our portfolio coverage...
Key Products MAT Q3 '99 Sales Sales Growth
MAT Q3 '99: >$1M $M '99 vs. '98
OTHER
Debridat A3F 39 -11%
Hextril R2A 25 -3%
Pivalone Neomycine R1A 23 +2%
Oropivalone 13 +2%
Diclomax M1A 11 +11%
Mylicon A2A 7 +16%
Pivalone R1A 5 +16%
Loestrin G3A1 3 +2%
Thiovalone R2A 2 +2%
Unacim J1C 1 -44%
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Feldene M1A/M2A 85 -8%
Kompensan (+S) A2A 8 -7%
Glibenese A10B 8 -21%
Rhinotussle R5A 7 -2%
Glycerin A6A 5 +3%
Codipront R5D 5 -6%
Ribextosse R5D 3 +21%
Deltacortril H2A 3 +4%
Rhionpront R1B 3 -11%
Codipront Mo R5D 2 +28%
Collomack D11A 1 +8%
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...and adds two strong new therapy areas
Key Products MAT Q3 '99 Sales Sales Growth
MAT Q3 '99: >$1M $ M '99 vs. '98
G.U. SYTEM Viagra G4B3 129 +7024%
& SEX Epiestrol G3C 4 -12%
HORMONES Oestro Femin G3C 3 -7%
Cardura G4B2 2 +22%
Trosyd G1B 1 -14%
SYSTEMIC Zithromax J1F 141 +8%
ANTI- Diflucan J2A 128 +11%
INFECTIVES Vibramycine J1A 11 -20%
Unasyn J1C 9 +5%
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A more balanced portfolio
PFIZER [pie chart] (Europe Big 7 MAT Q3 1999)
Cardiovascular System 54%
Central Nervous System 18% PFIZER + WARNER LAMBERT
[pie chart]
Systemic Anti-Infectives 12% Cardiovascular System 55%
Respiratory System 8% Central Nervous System 14%
G.U. System & Sex Hormones 5% Systemic Anti-Infectives 11%
Alimentary Tract, Metabol 3% Respiratory System 7%
$1,682,631,000 G.U. System & Sex Hormones 5%
Alimentary Tract, Metabol 4%
Musculo-Skeletal Sytem 3%
WARNER-LAMBERT
[pie chart]
Cardiovascular System 57% Other 1%
Central Nervous System 16% $2,874,382,000
Systemic Anti-Infectives 15%
Respiratory System 8%
G.U. System & Sex Hormones 4%
$1,264,938,000
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Strong Complementary Pipeline
Phase III / Pre-launch Phase II Phase I
Cardiovascular OOO XXXXOOO X X XXOO
Central Nervous System XXXOOOO XOO X XXXXXO
OOOO
Oncology X XXO XXXX
Genito / Urinary &
Endocrine O OOOOO OOO
Anti-Inflammatories O OO O
Other XXXO XXO XXX
X - Parke-Davis
O - Pfizer
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What does the merger mean for us in Europe and Asia?
o A major pharmaceutical force across both continents
o Growth across a complementary and better balanced portfolio
o PD name and brand will continue to be customer facing
o Overall goal - drawing the best from both
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Challenges ahead
o Building a unified culture that balances people and performance
o Maximising success around the world
o Developing the medical breakthroughs of tomorrow
o Playing a major role in government, industry and community
o Becoming an attractive employer
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Issues to be resolved
o What is the business model?
o Where will we be located?
o Where are the cost savings to come from?
o What will happen to me?
o What are the timescales?
o How much say will I have in deciding the future?
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Your questions answered
o Time to listen to your views
o Your questions
o From those you supplied yesterday
o From the audience in London
o From colleagues participating via audio link
o Our responses
o Open, direct, with as much detail as we know
o More answers via email/intranet - fast turnaround on a continuous
basis
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Working together
o Your role
o Lead the organisation in delivering 2000 goals
o Communicate, listen and stabilise our people through the
transition process
o Support for you
o Support packs on desks Monday morning
(Guidance notes, Q&A and template communication materials, video
to follow)
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Next steps
o Country meetings - Monday
o Your feedback on this briefing today
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Key messages
o Strong future
o Broader market participation
o Brand / product leadership
o Optimism and opportunity
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What we need from you
o Recognise and deal with uncertainties
o Colleagues can prosper in the new Pfizer Inc if we continue to do what
we have done best
o We have to keep the organisation focused on the 2000 goals
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We need your input
o Prioritise the top 3 communication channels that are the most
effective for important news
o What further communication support would you value most from the
centre?
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* * * * * *
These communications include certain "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of 1995. These
statements are based on management's current expectations and are naturally
subject to uncertainty and changes in circumstances. Actual results may
vary materially from the expectations contained herein. The forward-looking
statements in this document include statements about future financial and
operating results and the proposed Warner-Lambert/Pfizer transaction. The
following factors, among others, could cause actual results to differ
materially from those described herein: inability to obtain, or meet
conditions imposed for, governmental approvals for the merger between
Warner-Lambert and Pfizer; failure of the Warner-Lambert or Pfizer
stockholders to approve the merger; the risk that the Warner-Lambert and
Pfizer businesses will not be integrated successfully; the costs related to
the merger; and other economic, business, competitive and/or regulatory
factors affecting and Warner-Lambert's and Pfizer's businesses generally.
More detailed information about those factors is set forth in
Warner-Lambert's and Pfizer's filings with the Securities and Exchange
Commission, including their Annual Reports filed on Form 10-K for the
fiscal year ended 1998, especially in the Management's Discussion and
Analysis section, their most recent quarterly reports on Form 10-Q, and
their Current Reports on Form 8-K. Warner-Lambert and Pfizer are under no
obligation to (and expressly disclaim any such obligation to) update or
alter their forward-looking statements whether as a result of new
information, future events or otherwise.
* * * * * *
On November 15, 1999, Pfizer filed a joint proxy statement/prospectus in
connection with its proposed merger with Warner-Lambert. Pfizer and
Warner-Lambert will be jointly preparing an amendment to the joint proxy
statement/prospectus and will be filing such amendment with the Securities
and Exchange Commission as soon as practicable. WE URGE INVESTORS TO READ
THE JOINT PROXY STATEMENT/PROSPECTUS AND ANY OTHER RELEVANT DOCUMENTS TO BE
FILED WITH THE SEC, BECAUSE THEY CONTAIN IMPORTANT INFORMATION. Investors
and security holders may obtain a free copy of the joint proxy
statement/prospectus and other documents filed by Pfizer Inc. and
Warner-Lambert Company with the Commission at the Commission's web site at
www.sec.gov. In addition, the joint proxy statement/prospectus and other
documents filed with the SEC by Pfizer may be obtained for free from Pfizer
by directing a request to Pfizer Inc., 235 42nd Street, New York, New York
10017, Attention: Investor Relations, telephone: (212) 573-2668. Documents
filed with the SEC by Warner-Lambert may be obtained for free from Warner-
Lambert by directing a request to Warner-Lambert Company, 201 Tabor Road,
Morris Plains, New Jersey 07950, Attention: Corporate Secretary, telephone
(973) 385-4593.
Warner-Lambert and certain other persons will be soliciting proxies from
Warner-Lambert shareholders in favor of the merger. Information concerning
the participants in the solicitation is included in the filing under Rule
425 made by Warner-Lambert with the SEC on February 9, 2000.
