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
<PAGE>
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-
<PAGE>
EXHIBIT INDEX
(99.1) Joint Analyst Presentation
(99.2) AHP Presentation
-4-
AMERICANWARNER, INC.
_______________________
Industry Leading
R&D Capabilities
_______________________
<PAGE>
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
<PAGE>
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
<PAGE>
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
<PAGE>
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
<PAGE>
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
<PAGE>
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
<PAGE>
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
<PAGE>
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
<PAGE>
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
<PAGE>
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
<PAGE>
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
<PAGE>
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
<PAGE>
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
<PAGE>
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
<PAGE>
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
<PAGE>
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
<PAGE>
R&D EXPENDITURES AND PIPELINE
[table containing the following information:]
<TABLE>
<CAPTION>
1998 R&D Number of products in Pipeline
-------------- ------------------------------------------------------
Rank Corporation Spend Total Ph. II Ph. III Pre-Mkt
---- ---------------------- -------------- ------------------- ---------------- ------------- -----------------
<S> <C> <C> <C> <C> <C> <C>
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
</TABLE>
-18- AmericanWarner
<PAGE>
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
<PAGE>
THE AMERICANWARNER COMBINATION: LEADERSHIP GROWTH RATES WITH FURTHER UPSIDE
$ Billions
[table containing the following information:]
<TABLE>
<CAPTION>
CAGR
(1999-2002)
1999E 2000E 2001E 2002E Percent
------------------- -------------- ------------------- ------------------- --------------------------
<S> <C> <C> <C> <C> <C>
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%
</TABLE>
-20- AmericanWarner
<PAGE>
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
<PAGE>
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
<PAGE>
ILLUSTRATIVE VALUE CREATION
[table containing the following information:]
<TABLE>
<CAPTION>
NEAR TERM
($200 million in 2000E Cost Synergies)
Market capitalization
---------------------------------------------
AmericanWarner
2000 American Warner- American illustrative
P/E Home Lambert Warner value creation
------------ ----------- -------------- -------------- ----------------
<S> <C> <C> <C> <C> <C>
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
<CAPTION>
[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
------------ ----------- -------------- ------------- ---------------
<S> <C> <C> <C> <C> <C>
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
</TABLE>
-23- AmericanWarner
<PAGE>
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
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
<PAGE>
Biopharmaceutics - Share of Revenue
AHP
---
[pie chart containing the following information:]
1999 2002
--------------- ---------------
Biotech 12% 24%
- -----------------
Source: Strategic Plan/Budget
-2-
<PAGE>
Biopharmaceutics - Share of Revenue
Pfizer
------
[pie chart containing the following information:]
1999 2002
--------------- ---------------
Biotech 0% 1%
- -----------------
Source: Analysts Forecasts
-3-
<PAGE>
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-
<PAGE>
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-
<PAGE>
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<F1>
- - RECOMBINATE (Registered Trademark)<F1>
- -----------------
[FN]
(NI) - new indications
<F1> out licensed
-6-
<PAGE>
Pfizer Biopharmaceutics - Product Flow
IND Track
Phase I
Phase II
- - rNIF (UK-279,276)
Phase III
- - Inhaled insulin
Pre-Registration
Approved/Launched
-7-
<PAGE>
R&D Facilities Focused Primarily on Biopharmaceutics
AHP Pfizer
- --- ------
- - Cambridge, MA - None
- - Andover, MA
- - Pearl River, NY
- - Rochester, NY
- - Seattle, WA
-8-
<PAGE>
New Product Revenues
Share of 2002 sales from products launched in 1999 or later<F1>
[pie chart containing the following information:]
AHP Pfizer
--------------- ---------------
New Products 18% 9%
- -----------------
[FN]
<F1>Excludes alliance revenues
-9-
<PAGE>
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-
<PAGE>
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<F1> Vfend ($500+)
($200-400) ($250-750)
Valdecoxib*
($250-600)
- ------------------
[FN]
<F1> Represents co-marketed or co-promoted product, with Pfizer's or AHP's
revenue share
Revenue source: October-November 1999 analyst estimates
-11-
<PAGE>
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
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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
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