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WRITTEN COMMUNICATION COMPRISED OF SLIDES SHOWN DURING AN ANALYST
PRESENTATION DATED SEPTEMBER 14, 2000
SLIDE 0
This slide contains the text "Chiron - Science for Life" accompanied by a
Chiron logo, and the date "September 14, 2000".
SLIDE 1
This slide is entitled "Forward Looking Statement," and contains the
following text: "Today's presentation contains both historical information
and forward-looking comments. Actual events or results may differ materially
from these expectations. For a complete discussion of the factors that may
affect operating and financial results, please see Chiron's documents filed
with the SEC, including its most recent 10-K and 10-Q."
SLIDE 2
This slide is titled "Chiron Today" and contains the following text:
- Genomics
- Small Molecules
- Recombinant Proteins
- Cancer, Infection, Cardiology
- Leveraging Technology
- BioPharmaceuticals
- Blood Testing
- Vaccines
SLIDE 3
This slide contains the logo of Chiron and the text "Markets," and contains a
map of the land masses of the world excluding certain polar regions, with
color-coded icons resembling beakers situated over certain countries or
regions. Beakers labeled "BioPharmaceuticals" are positioned on North America,
South America and Europe. Beakers labeled "Vaccines" are positioned on the
United States, Argentina, Europe, India and Japan. Beakers labeled "Blood
Testing" are positioned on the United States, South Africa, Southeastern
Europe, Southeast Asia and Australia.
SLIDE 4
This slide is titled, "Chiron & PathoGenesis - A Global Player in Infection,"
and contains the logos of each of Chiron and PathoGenesis Corporation.
SLIDE 5
This slide is titled, "Important Information," and contains the following
text: "PathoGenesis shareholders should read Chiron's tender offer statement
on Schedule TO and PathoGenesis' Solicitation/Recommendation Statement on
Schedule 14D-9 when they are available because they will contain important
information. The Schedule TO, the Schedule 14D-9 and other filed documents
will be available for free at the Securities and Exchange Commission's
website at www.sec.gov. In addition, the Schedule TO will be available from
Chiron Corporation, 4560 Horton Street, Emeryville, California, 94608,
Telephone: (510) 655 8729 and the Schedule 14D-9 will be available from
PathoGenesis Corporation, 201 Elliott Avenue West, Seattle, Washington,
98119, Telephone: (206) 467-8100. This announcement is neither an offer to
purchase nor a solicitation of an offer to sell securities of PathoGenesis.
The tender offer will be made solely by an offer to purchase and related
letter of transmittal to be disseminated upon the commencement of the tender
offer."
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SLIDE 6
This slide is titled "Combining Research & Development Strengths" and depicts
the respective strengths of each company in a product development cycle. It
contains a graphic titled "Anti-Bacterial/Anti-Infective Product Development
Cycle" which depicts a band labeled with the logos of each of Chiron and
PathoGenesis and containing 9 colored rectangles stretching under the text
"Target Discovery -- > Drug Discovery -- > Pre-Clinical Development -- >
Clinical Development," with an arrow at the end of the band pointing to a box
with the title "New Antibiotic Drugs." In the box is the text, "Respiratory
Tract," "Hospital Use," "Broad Spectrum" and "Community Use." A key
identifies the color purple with the text "Chiron Strengths" and rectangles
labeled "HTS," "Small Molecule Libraries," "Combichem," and "Medicinal
Chemistry" within the band are purple. A key identifies the color blue with
the text "PathoGenesis Strengths" and rectangles labeled "Molecular
Genetics," "Bacterial Genomics," "Animal Pharmacology Models," and
"Anti-Bacterial Development Experience" within the band are blue. One
rectangle, labeled "Microbiology," is a mixture of both blue and purple.
SLIDE 7
This slide, titled "BioPharma," depicts four arrows stretching eastward over
a maps of the United States and Europe. Above the respective maps are the
labels "U.S." and "Europe." The first arrow from the top is labeled
"Proleukin-Registered Trademark-" and shows a picture of the product, a
graphic of an office building or factory, which stands for "Manufacturing,"
above the U.S. map and a picture of a globe with a graphic representation of
a handshake taking place in front of the globe, which stands for "Marketing."
The second arrow from the top is labeled "TOBI-Registered Trademark-" and
shows a picture of the product, a graphic of an office building or factory,
which stands for "Manufacturing," above the U.S. map and a picture of a globe
with a graphic representation of a handshake taking place in front of the
globe, which stands for "Marketing." The first and second arrow each point
to the words "Chiron" and a Chiron logo featuring a centaur bearing a medical
symbol. The second arrow from the bottom is labeled "Betaseron-Registered
Trademark-" and shows a picture of the product, a graphic of an office
building or factory, which stands for "Manufacturing," above the U.S. map and
a graphic of a small pile of paper currency, which stands for "Royalties,"
over the map of Europe. This arrow points to the logos of Schering and
Berlex. The arrow at the bottom is labeled "Regranex-Registered Trademark"
and shows a picture of the product, a graphic of an office building or
factory, which stands for "Manufacturing," above the U.S. map. This arrow
points to the logos of Johnson & Johnson and Ortho-McNeil.
SLIDE 8
This slide, titled "Proleukin-Registered Trademark-," shows the Proleukin
logo and a picture of the product. It is followed by the text "Approved for
Metastatic Melanoma and Metastatic Renal Cell Carcinoma; Growth
opportunities: Increase market penetration; Potential use in HIV; Leverage
immunomodulatory action; Develop franchise improvements."
SLIDE 9
This slide, titled "TOBI-Registered Trademark," shows the TOBI logo and a
picture of the product. It is followed by the text "Only inhaled antibiotic
approved for pseudomonal lung infections in CF patients; approved in North
America; mutual recognition in Europe; Growth opportunities: NextGen,
Bronchietasis, Ventilator-associated pneumonia & lung transplant infections."
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SLIDE 10
This slide, titled "Betaseron-Registered Trademark-," shows logos of Berlex
and Schering and a picture of the product. It is followed by the text
"RR: Approved U.S./Europe; SPMS: Approved Europe/filed U.S.; Growth
opportunities: Additional global approvals in SPMS, Develop franchise
improvements."
SLIDE 11
This slide, titled "Regranex-Registered Trademark- (PDGF)," shows the logo of
Regranex and a picture of the product, along with the logo for Johnson &
Johnson. It is followed by the text "Approved in diabetic foot ulcers; Growth
opportunities: Approval in additional geographies, Additional indications."
SLIDE 12
This slide, titled "Vaccines," contains a map of the land masses of the world
excluding Antarctica, with countries or regions labeled "Rest of EU,"
"Germany" and "Italy" projected our from the map in bold color, and the
United States and India projected out from the map in grey. Color-coded
icons resembling beakers are situated over those countries or regions. A
beaker over each of the United States and India represents "Rabies." Beakers
over Germany represent "Diphtheria, Tetanus, Acellular Pertussis;" "Mumps,
Measles, Rubella;" "Hepatitis A, Hepatitis B;" "Rabies;" "Haemophilus
influenza;" "Tick-borne Encephalitis;" "Flu;" and "Polio." Beakers over the
rest of EU represent "Diphtheria, Tetanus, Acellular Pertussis;" "Mumps,
Measles, Rubella;" "Haemophilus influenza;" "Tick-borne Encephalitis;" "Flu;"
"Men C;" and "Polio." Beakers over Italy represent "Diphtheria, Tetanus,
Acellular Pertussis;" "Mumps, Measles, Rubella;" "Hepatitis A, Hepatitis B;"
"Rabies;" "Haemophilus influenza;" "Tick-borne Encephalitis;" "Flu;" and
"Polio." In the north-east corner of the map is situated the logo for
Aventis and in the south-west corner of the map is situated the logo for
SmithKline Beecham.
SLIDE 13
This slide, titled "Menjugate-TM- Approved vaccine for Meningitis C," shows the
logo of Menjugate and a picture of the product. It is followed by the text
"Approved in the UK March 1, 2000; Chiron awarded $100M+ tender for 2000; Other
upsides possible."
SLIDE 14
This slide, titled "Blood Testing," shows two pictures of blood testing
apparatuses or equipment and the logo for Johnson & Johnson and a logo
containing the text "GEN-PROBE, Pioneering Advances in Healthcare Through DNA
Probes."
SLIDE 15
This slide, titled "Blood Testing - NAT - Procleix Test" shows, under the
label "eSAS" in the upper left hand corner, a picture of a blood testing
apparatus. Under this picture is the following text: "Semi-automated system,
eSAS: 501K filing in process; Broadly used for all NAT testing, worldwide."
In the upper right hand corner, under the label "Software," is a picture of a
desktop PC and a peripheral device. Under this picture is the following
text: "501K filing in process." In the lower right hand corner, under the
label "Assays," is a graphic representation of a collection of scientific
measuring vessels. To the right of this picture is the following text: "BLA
filing in process; Procleix1: HCV and HIV-1; Next generation assays."
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SLIDE 16
This slide, titled "Blood Testing: Product Testing & Approval," contains a
map of the land masses of the world excluding certain polar regions, with
color-coded icons of vials situated over certain countries or regions. Vials
labeled "Testing" are positioned on the United States, the United Kingdom,
Italy, Portugal and South Africa. Vials labeled "Approved" are positioned on
France, Spain, Germany, Southeast Asia and Australia.
SLIDE 17
This slide, titled "Leveraging Technology -- Intellectual Property," shows
the following headings labeled upon arrows, which are pointing to the text
which follows them in bullet point format: "Patents: Alphavirus, HCV,
Herceptin;" "Licensing Technology: HCV for therapeutics to Glaxo Wellcome,
HCV for diagnostics to Abbott & Bayer, PCR to Roche;" and "Product Licenses:
HBV vaccine to Merck, Insulin to Novo Nordisk."
SLIDE 18
This slide, titled "Research & Development," shows pictures of various
products, beakers, petri dishes and scientific equipment.
SLIDE 19
This slide, titled "Research & Development Pipeline," contains a graph for
which the column headings are "Preclinical," "Phase I," "Phase II" and "Phase
III/IV." The first row is labeled "Infection," and has under "Preclinical"
the text "HBV NAT assay, Vaccines: HIV, HCV, Men B, H.pylori, Small
molecules: HCV, PA 1806, 824;" has under "Phase I" the text "MIV-150 (HIV);
TIGRIS-TM-; TOBI-Registered Trademark- for ventilator associated pneumonia;
TOBI-Registered Trademark- NextGen;" has under "Phase II" the text
"TOBI-Registered Trademark- for severe bronchiectasis, TOBI-Registered
Trademark- for lung transplant, HBV Immunotherapy;" and has under "Phase
III/IV" the text "TOBI-Registered Trademark- (CF), Menjugate-TM- Infant (UK),
Proleukin-Registered Trademark- (HIV), TFPI (Sepsis), HAV (Europe), eSAS
Procleix-TM-." The second row is labeled "Cancer," and has under
"Preclinical" the text "VEGFr Inhhibitor, Antibodies, Immuno Regulator,
Anti-CD40;" and has under "Phase I" the text "Angiozyme-TM-, Proleukin
--NHL;" and has under "Phase II" and under "Phase III/IV" no text. The bottom
row is labeled "Other Opportunities," and has under "Preclinical" the text
"Anti-angiogenesis compound, Diabetes small molecules;" has under "Phase I"
the text "Factor VIII (Hemophilia);" has under "Phase II" the text "FGF
(CAD), FGF (PAD);" and has under "Phase III/IV" the text
"Betaseron-Registered Trademark- (US-Secondary Prog.)."
SLIDE 20
This slide, titled "TFPI for Severe Sepsis" shows a logo for "Pharmacia" in
the upper right hand corner. Four arrows in the left hand margin down the
page point to the following text: "Market Potential: greater than 500,000
patients;" "Target Label: Treatment of severe sepsis;" "Current Status: Phase
III trial;" and "Next Data: 'OPTIMIST' trial initiated."
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SLIDE 21
This slide is titled "R&D-FGF for CAD and PAD." Four arrows in the left hand
margin down the page with the following text: "Marketing Potential," Target
Label," "Current Status" and "Next Data" point, respectively, to the
following text: "Greater than 1 million target CAD and PAD patients;"
"Treatment of severe coronary artery disease; Treatment of peripheral artery
disease;" "Phase II trials;" and "Go v no-go decision 1H01."
SLIDE 22
This slide, titled "Financial Performance," shows a graph on which the
left-hand side of the graph (y-axis) is labeled "Revenue $ in Millions" and
shows the following tick marks: "$800, $600, $400, $200, $-;" the right-hand
side of the graph (y-axis) is labeled "EPS" and shows the following tick
marks: "$0.70; $0.60; $0.50; $0.40; $0.30; $0.20; $0.10; $-;" and the bottom
of the graph (x-axis) is labeled "1997; 1998; 1999; and 2Q00." The graph
shows a 1997 revenue approaching $600 million, a 1998 revenue of
approximately $750 million, a 1999 revenue approaching $800 million and a
second quarter of 2000 revenue topping $400 million. The graph shows yearly
1997 EPS of under $0.30, yearly 1998 EPS between $0.50 and $0.40, and yearly
1999 EPS of approximately $0.60. The graph shows half-year 1998 EPS between
$0.10 and $0.20, half-year 1999 EPS of approximately $0.30 and half-year 2000
EPS approaching $0.50.
SLIDE 23
This slide, titled "Milestones 2000," shows a number of headings with text
underneath them. Under the heading "Biopharmaceuticals," there appears the
text "-- > 20% Proleukin-Registered Trademark- growth; -- >
Betaseron-Registered Trademark- SP approval; -- > TOBI-Registered Trademark-
launch in Europe; -- > Resume PDGF sales." Under the heading "Blood Testing,"
there appears the text "-- > File for eSAS Procleix-TM- approval; -- > HBV
assay; -- > Triple TMA sites; -- > File IND on TIGRIS." Under the heading
"R&D," there appears the text "-- > 50% enrollment SILCAAT; -- > Publish PA
genome; -- > TFPI Phase III initiated; -- > HBV Phase II initiated;
Go/no-go: -- > FGF-CAD; -- > IGF-OA;-- > FGF-PAD; Early Stage Programs: --
> FVIII, Angiozyme-TM- - Phase I/II; -- > Two new clinical programs; -- >
File IND for PA -1806." Under the heading "Vaccines," there appears the text"
-- > Men C approval/launch; -- > Fluad-TM- approval; -- > Men B publication."
Printed in the lower right hand portion of the slide are the numbers "$0.78
-- > $0.80 - $0.85 EPS."
SLIDE 24
This slide contains the text "Chiron - Science for Life" accompanied by a
Chiron logo, and the text "Chiron: Science, Products, People,"
"www.chiron.com" and "NASDAQ: CHIR."
