<PAGE> 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 16, 1999
----------------------
PFIZER INC.
(Exact name of registrant as specified in its charter)
<TABLE>
<S> <C> <C>
Delaware 1-3619 13-5315170
- ---------------------------- ------------------------ ----------------------------
(State or other jurisdiction (Commission File Number) (IRS Employer Identification
of incorporation) No.)
</TABLE>
235 East 42nd Street
New York, New York 10017
- --------------------------------------------- --------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (212) 573-2323
--------------------------
<PAGE> 2
ITEM 5. OTHER EVENTS.
On November 15, 1999, Pfizer Inc., a Delaware Corporation
("Pfizer"), issued a press release responding to Warner-Lambert Company's
request to make previously confidential information concerning the Lipitor
contracts public. A copy of Pfizer's press release is attached hereto as Exhibit
99.1.
In addition, Pfizer announced the filing of an amended
complaint against Warner-Lambert Company and its Directors in the Delaware
Court of Chancery on November 15, 1999 detailing actions by Warner-Lambert and
its Board of Directors that violate their fiduciary duties to their
stockholders. Pfizer also filed a motion asking for expedited discovery and an
early hearing on its motion to enjoin the Warner-Lambert/American Home merger
and its series of anti-shareholder defensive provisions. A copy of the Pfizer
press release, regarding the complaint, dated November 16, 1999, is attached
hereto as Exhibit 99.2, and is incorporated herein by reference.
On November 16, 1999, Pfizer held a meeting with securities
analysts in New York, New York. A copy of the Pfizer press release, dated
November 16, 1999, relating to the presentation by Pfizer at the meeting and the
visual aids used as part of the analyst presentation, are attached hereto as
Exhibits 99.3 and 99.4 respectively, and are incorporated herein by reference.
This Current Report on Form 8-K contains or incorporates
by reference forward-looking statements that involve risks and uncertainties.
These statements may differ materially from actual future events or
results. Readers are referred to the documents filed by Pfizer with the
Securities and Exchange Commission, which identify important risk factors that
could cause actual results to differ from those contained in the
forward-looking statements.
These materials include analysts' estimates and other
information prepared by third parties for which Pfizer assumes no
responsibility. In addition, certain statements regarding synergies and other
projections and information contained in the press release and analyst
presentation and are based on publicly-available information regarding Pfizer
and Warner-Lambert Company. Pfizer undertakes no obligation to review or
confirm analysts' expectations or estimates on such publicly-available
information or to release publicly any revisions to any forward-looking
statements to reflect events or circumstances after the date hereof or to
reflect the occurrence of unanticipated events.
- -2-
<PAGE> 3
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS.
Exhibit 99.1 - Press release, dated November 15, 1999, issued by the Registrant
in response to the Warner-Lambert Company's request to make the
Lipitor contract information public.
Exhibit 99.2 - Press release, dated November 16, 1999, issued by the Registrant
regarding the amended complaint against Warner-Lambert Company
and its directors filed on November 15, 1999.
Exhibit 99.3 - Press release, dated November 16, 1999, issued by the
Registrant, regarding securities analyst meeting held on
November 16, 1999.
Exhibit 99.4 - Visual aids used at securities analyst presentation by the
Registrant.
<PAGE> 4
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.
PFIZER INC.
-----------
(Registrant)
Date November 16, 1999 /s/ Margaret M. Foran
----------------------------- ----------------------------------------
Name: Margaret M. Foran
Title: Vice President
- Corporate Governance
<PAGE> 5
EXHIBIT INDEX
Exhibit 99.1 - Press release, dated November 15, 1999, issued by the Registrant
in response to the Warner-Lambert Company's request to make the
Lipitor contract information public.
Exhibit 99.2 - Press release, dated November 16, 1999, issued by the Registrant
regarding the amended complaint against Warner-Lambert Company
and its directors filed on November 15, 1999.
Exhibit 99.3 - Press release, dated November 16, 1999, issued by the
Registrant, regarding securities analyst meeting held on
November 16, 1999.
Exhibit 99.4 - Visual aids used at securities analyst presentation by the
Registrant.
<PAGE> 1
Exhibit 99.1
PFIZER RELEASES RESPONSE TO WARNER-LAMBERT
November 15, 1999
Gregory L. Johnson, Esq.
Vice President & General Counsel
Warner-Lambert Company
Dear Greg:
In response to the press release Warner-Lambert issued this morning regarding
our contractual relationships with respect to Lipitor, let me make it very
clear that there has been no breach of any sort with respect to those
agreements. Any such suggestion by Warner-Lambert to the contrary is simply
inappropriate and wrong.
With respect to the request in your press release that Warner-Lambert be
permitted to make public the confidential portion of our agreements, please be
advised that we agree and view your public request as an understanding that
both sides can make public the confidential contents of the agreements.
Sincerely,
Paul S. Miller
Executive Vice President and General Counsel, Pfizer Inc
Contact: Andy McCormick
212-573-1226
<PAGE> 1
Exhibit 99.2
[Pfizer LOGO]
FOR IMMEDIATE RELEASE CONTACT: Andy McCormick
NOVEMBER 16, 1999 212-573-1226
PFIZER FILES AMENDED COMPLAINT IN DELAWARE COURT, REGISTRATION
STATEMENT WITH SEC IN CONNECTION WITH WARNER-LAMBERT MERGER
--
PFIZER ASKS FOR EXPEDITED DISCOVERY, EARLY HEARING FOR INJUNCTION TO
BLOCK "ONEROUS AND UNLAWFUL" ANTI-SHAREHOLDER PROVISIONS OF
WARNER-LAMBERT/AHP MERGER AGREEMENT
--
PFIZER INTENDS TO BEGIN PROCESS OF CONSENT SOLICITATION TO
REMOVE AND REPLACE WARNER-LAMBERT BOARD OF DIRECTORS
NEW YORK, November 16 - Pfizer Inc said today it has filed an amended complaint
in the Delaware Court of Chancery against Warner-Lambert, its Directors and
American Home Products and will be seeking expedited discovery and an early
hearing on its motion to enjoin the Warner-Lambert/AHP merger and its
unprecedented series of anti-shareholder defensive provisions.
It has also filed an S-4 registration statement with the Securities and
Exchange Commission in connection with its proposed Warner-Lambert merger.
The Delaware lawsuit is in support of Pfizer's previously announced merger
proposal, which offers a premium to Warner-Lambert shareholders and contains
none of the coercive provisions of the no-premium AHP agreement.
The amended complaint seeks a declaratory judgment that the Warner-Lambert
directors breached their fiduciary duties and that the various defensive
provisions in the agreements between Warner-Lambert and AHP are illegal.
The suit calls the defensive provisions "onerous and unlawful" and part of
Warner-Lambert's efforts to ensure that the AHP merger "would not be derailed
by a competing, superior merger proposal from Pfizer or any other entity."
The lawsuit also charges that Warner Lambert's directors breached their
fiduciary obligations in approving the provisions and went "to great lengths to
remain ignorant of . . . the competing proposal."
"The cumulative effect of these provisions is to put an unprecedented set of
obstacles in front of Pfizer's proposal, and in the process force the
Warner-Lambert shareholders to have no opportunity to consider any proposal
other than the Warner-Lambert/AHP merger. Importantly, Warner-Lambert also knew
that Pfizer was seeking permission to make a superior proposal while it put
these defensive provisions in place," Mr. Clemente added.
Pfizer is seeking to enjoin the following:
- A provision in which the Warner-Lambert Board agrees not to take any
steps to amend, modify or terminate its poison pill for any transaction
other than Warner-Lambert/AHP, essentially contracting away these rights
to AHP.
<PAGE> 2
- A "cross-option" agreement whose sole purpose is to prevent Pfizer from
using the customary "pooling of interests" accounting. Warner-Lambert
granted AHP an option to acquire 14.9% of Warner-Lambert's stock if the
AHP agreement is terminated. This prevents Pfizer or any company other
than AHP from using the pooling method. Pfizer will argue that
Warner-Lambert used its standstill agreement with Pfizer as a device to
favor AHP and give AHP exclusive rights to the favorable pooling
treatment.
- A draconian financial penalty in the form of an exorbitant termination
fee -- up to $2 billion -- if the AHP agreement is terminated under
various scenarios, including if Warner-Lambert shareholders reject the
AHP merger in favor of a superior transaction.
- An unusually long "lock up" provision -- until November, 2000 -- in which
the Warner-Lambert Board is essentially prohibited, without a shareholder
rejection, from withdrawing the AHP deal and recommending any other
business combination to shareholders, even with a premium and even if the
Warner-Lambert directors believe that such a superior merger would be in
the best interests of their shareholders.
Pfizer's complaint also provides additional details on Pfizer's repeated
efforts to inform Warner-Lambert of its interest in making a proposal and
obtaining Warner-Lambert permission, including inquiries from Pfizer's
Chairman, William C. Steere, Jr., Pfizer's President and Chief Operating
Officer, Henry A. McKinnell, and two Pfizer directors to Warner-Lambert's
management and directors.
Pfizer also said that it intends to begin the process of soliciting consents to
remove and replace the Board of Directors of Warner-Lambert so that
Warner-Lambert's shareholders will have the opportunity to consider the most
advantageous transaction available to them.
###
<PAGE> 1
Exhibit 99.3
[Pfizer LOGO]
For Immediate Release Contact: Andy McCormick
November 16, 1999 212-573-1226
PFIZER ON "THRESHOLD OF A NEW ERA" AS STRONG, SUSTAINED GROWTH
PROPELS COMPANY TO TOP OF GLOBAL PHARMACEUTICAL INDUSTRY
--
COMPANY SEES COMPOUNDED ANNUAL GROWTH OF 16% IN REVENUE AND 20%
IN INCOME FROM 1999-2002, HIGHEST OF 10 LARGEST
PHARMACEUTICAL COMPANIES
--
SEVEN NEW CANDIDATES TO BE SUBMITTED FOR APPROVAL BY 2002; EIGHT
PHASE II CANDIDATES PENDING FOR 2003-2005; 91 TOTAL COMPOUNDS IN
PIPELINE AS COMPANY TARGETS CANCER, DIABETES, OSTEOPOROSIS,
ASTHMA AMONG OTHER UNMET MEDICAL NEEDS
--
PFIZER/WARNER-LAMBERT STRATEGIC COMBINATION WOULD
HAVE 43% RETURN ON EQUITY, ANNUAL EPS GROWTH OF 24% THROUGH 2002, SUPERIOR TO
WARNER-LAMBERT/AMERICAN HOME PRODUCTS
NEW YORK, November 16 - Because of the extraordinary strength of its innovative
new medicines, outstanding R&D and best-in-class sales and marketing, Pfizer
expects its revenue and earnings growth to lead the global pharmaceutical
industry for the foreseeable future.
At a meeting with financial analysts today at Pfizer headquarters, Chairman and
Chief Executive Officer William C. Steere, Jr. said, "Today Pfizer stands on
the threshold of a new era: our company has never been stronger, and our
prospects have never been brighter. Everything is in place for Pfizer to be --
and stay -- the number one pharmaceutical company in the world."
"The power of Pfizer alone is unmatched in our industry, but the historic
opportunity to combine with Warner-Lambert would create an unbeatable platform
for growth beyond even ours," said Hank McKinnell, Ph.D., President and Chief
Operating Officer of Pfizer. "Our goal is nothing less than establishing a new
competitive standard in terms of the magnitude, breadth, scope and productivity
of our operations and products."
Dr. McKinnell, who is leading Pfizer's Warner-Lambert acquisition task force,
provided detailed comments on Pfizer's superior offer for Warner-Lambert, the
"first major pharmaceutical merger done from strength," which would create a
global company with $28 billion in combined revenues and nearly $21 billion in
prescription pharmaceutical sales.
"On all measures of financial performance, Pfizer/Warner-Lambert significantly
outperforms Warner-Lambert with American Home. Pfizer/Warner-Lambert would have
an estimated return on equity of 43%, return on assets of 29% and projected
annual EPS growth of 24%, compared to Warner-Lambert/AHP's 34%, 21% and 20%,
respectively. We believe the merits of combining the two fastest growing
companies in the industry will be very compelling to Warner-Lambert
shareholders," Dr. McKinnell told analysts.
Pfizer, which is growing at twice the industry rate, now expects to report a 20%
increase in revenue to $16.2 billion in 1999, a 27% increase in net income to
$3.3 billion and a 27% increase in diluted earnings per share to $0.85 relative
to 1998, excluding the divested Medical Technology Group and unusual charges
recorded in both 1998 and 1999.
"Pfizer's powerful commercial and research capabilities, coupled with our
rationalized and modernized manufacturing and distribution operations worldwide,
provide us the unique opportunity to both drive significant future revenue
growth and enhance our profitability at the same time," said David Shedlarz,
Pfizer Executive Vice President and Chief Financial Officer.
"We look forward to continued strong performance. We anticipate our revenue
will grow to $25.2 billion in 2002, our net income will increase to $5.7
billion and our diluted earnings per share will grow to $1.47. We expect to
<PAGE> 2
achieve compounded annual revenue and income growth of
16% and 20%, respectively, over the period 1999-2002 from Pfizer alone. This
performance would place us at the top of the 10 largest pharmaceutical companies
in the world," Shedlarz added.
Karen Katen, Senior Vice President and President, U.S. Pharmaceuticals, reported
that the Pfizer Pharmaceuticals Group (PPG) has grown at a compound annual
growth rate of 17% during this decade "by growing share in highly competitive
markets; expanding new or underdeveloped markets; introducing new products,
indications, dosage forms and delivery systems; and leveraging our best-in-class
field force and medical marketing." PPG is now expected to end the year with
seven billion-dollar products: Norvasc, Lipitor, Zoloft, Zithromax, Diflucan,
Celebrex and Viagra.
Products highlighted by Ms. Katen included Norvasc, the number one
cardiovascular medicine in the world with year-end 1999 estimated sales of $3
billion, which is growing at twice the market rate; Lipitor, co-promoted with
the Warner-Lambert Company, which is the fastest growing product in its market
and the number one statin in the U.S., with year-to-date third quarter sales of
$2.6 billion, up 77%; Zoloft, Pfizer's antidepressant medication, which is
expected to have $2 billion in annual sales this year and has a new indication
for post-traumatic stress disorder in final regulatory review; and Viagra,
Pfizer's unique oral medication for the treatment of male erectile dysfunction,
which is not over $1 billion in annual sales.
Ms. Katen also reported that Celebrex, the COX-2-specific treatment for
arthritis pain and inflammation co-promoted with Searle, has already exceeded
$1 billion in sales this year and is the number one brand of NSAID in the U.S.
and Canada.
Commenting on the Warner-Lambert proposal, Ms. Katen said that "the Lipitor
partnership has been extraordinarily successful, and I am confident that these
superb results can be duplicated with other products from the combined
portfolio."
FORWARD PIPELINE "MORE EXCITING THAN EVER BEFORE"
John F. Niblack, Ph.D., executive chairman of Pfizer and the company's top
scientist, said that the "forward pipeline of potential new Pfizer products is
more exciting than ever before. We now have seven late-stage candidates with
estimated NDA filing dates in the next three years, 20 additional supplemental
indications expected before 2003 and 64 early development programs, or 91
programs overall."
Dr. Niblack said seven near-term launches expected through 2002 -- Relpax,
Zeldox, Inhaled Insulin, Valdecoxib, Vfend, Darifenacin and Tikosyn -- together
represent over $5.6 billion in estimated peak year sales, with Relpax, Zeldox,
Inhaled Insulin and Valdecoxib all over $1 billion each.
Pfizer has received an approvable letter for Relpax, a new treatment for
migraine headache. Dr. Niblack said Pfizer data show that Relpax has advantages
across its dose range, with respect to relief onset, extent of relief, lower
relapses and effects in menstrual migraine.
Pfizer expects to file an amended NDA during the first quarter of the new year
for Zeldox, its new treatment for psychotic disorders. Dr. Niblack said Zeldox
is effective in treating a broad spectrum of symptoms of psychosis as well as
offering long-term efficacy, little weight gain and a favorable effect on lipid
levels.
A Phase III candidate, Inhaled Insulin, represents a brand new technology for
the treatment of diabetes. A global clinical program is underway at 120 sites.
"A medicine that offers excellent blood sugar control, for all classes of
diabetes, in a patient-friendly device, has enormous market potential," he
added.
<PAGE> 3
Dr. Niblack also reviewed Valdecoxib, a potent second-generation COX-2 inhibitor
co-developed with Searle that is being evaluated in Phase III trials for
treatment of osteoarthritis, rheumatoid arthritis and pain; Vfend, a significant
new treatment option for patients who suffer from cerebral fungal infections,
eye infections, resistant Candidiasis, and acute invasive Apergillosis in Phase
III trials; and Darifenacin for the treatment of over-active bladder (OAB)
syndrome, also in Phase III.
Tikosyn, Pfizer's newest cardiovascular drug for patients with highly
symptomatic atrial fibrillation (AF) or flutter, is the first new oral
anti-arrhythmic for AF to be approved in the U.S. in 10 years.
Projects to add value to in-line products, such as the Wizard trial studying
Zithromax' efficacy in treating atherosclerosis and heart disease, also
represent exciting expansion opportunities.
"Our strategy of operating a powerful internal R&D engine and augmenting its
productivity with a licensing operation capable of finding and landing
important co-promotion products continues to produce excellent results. The
team that led such a successful decade for Pfizer is now being supported by
hundreds of newly-trained scientists from the top academic centers around the
world," Dr. Niblack commented.
"The Pfizer/Warner-Lambert combined R&D programs would be highly complementary,
and I think there is potential to develop the most productive R&D force the
industry could see for decades," he added.
George M. Milne, Jr., Ph.D., president, Pfizer Central Research, reviewed
Pfizer's robust emerging pipeline covering 15 broad therapeutic areas and
targeting areas of high medical need. He reported on eight candidates now in
Phase II trials, including several that have the potential for accelerated
development. This portfolio of new medicines could be in the market by
2003-2005.
Compounds in development include lasofoxifene for treatment of both
osteoporosis and breast cancer in post-menopausal women. Lasofoxifene has
demonstrated efficacy in reducing LDL cholesterol, a known risk factor for
cardiovascular disease.
Pfizer's CP-424,391 has been shown to be safe and well-tolerated in clinical
trials to date for the treatment of frailty, which results from the loss of
bone and muscle mass and renders many elderly individuals too weak to perform
some daily tasks safely. Another compound, CP-358,774 targets Epidermal Growth
Factor Receptors (EGFRs), which are poorly regulated in cancer cells and can
lead to tumors. EGFRs are found in ovarian, head and neck cancers, among
others, and Phase II trials are ongoing in patients for whom other therapies
have failed.
Pfizer is also developing an NMDA receptor antagonist for the treatment of
traumatic brain injury as well as Neutrophil Inhibitory Factor (NIF) which
prevents neutrophil adhesion and therefore may be potentially useful in
preventing brain damage such as occurs in stroke.
Other early candidates include a drug in the same class as Viagra that
selectively inhibits the PDE5 enzyme, a new treatment for type 2 diabetes; and a
once daily, oral treatment for asthma in adults and children.
"This is an unusually strong and exciting group of Phase II candidates that
demonstrates the depth of our pipeline and the continued innovation of our
research," Dr. Milne stated.
<PAGE> 4
ACQUISITION OF WARNER-LAMBERT PROVIDES FOR ACCELERATED GROWTH
Summarizing his view of Pfizer's strategic combination with Warner-Lambert, Dr.
McKinnell noted these key points:
- R&D spending of $4 billion, about 40% higher than the next largest
competitor;
- Revenue growth at a compounded rate of at least 13% through 2002, with
additional top-line benefits from sales and marketing, and R&D
operations;
- At least $1.2 billion in cost savings and efficiencies from
consolidating manufacturing and distribution operations,
restructuring general and administrative functions, and leveraging
combined purchases of $10 billion by 2002;
- Compounded annual earnings growth of 24% through 2002, factoring in the
$1.2 billion in cost savings;
- A broad and deep product portfolio with complementary therapies in
cardiovascular, CNS and anti-infectives, among others;
- Additional Lipitor opportunities, particularly in the Japanese and
French markets and in more efficient collaboration on the Lipitor-Norvasc
combination therapy; and
- A combined OTC business with $3.5 billion in sales, ranking number three
worldwide.
"This strategic combination offers Warner-Lambert shareholders an immediate
premium and both Warner-Lambert and Pfizer shareholders significant upside
opportunites in the merged companies. We are committed to making it
happen," Dr. McKinnell added.
This press release is not an offer to purchase shares of Warner-Lambert, nor is
it an offer to sell any Pfizer common stock which may be issued in a merger
involving Warner-Lambert and a subsidiary of Pfizer. Any issuance of Pfizer
common stock in any merger involving Warner-Lambert and a subsidiary of Pfizer
would have to be registered under the Securities Act of 1933, as amended, and
such Pfizer common stock would be offered only by means of a prospectus
complying with such Act.
This release contains some forward-looking statements. We undertake no
obligation to publicly update any forward-looking statements, whether as a
result of new information, future events or otherwise. Forward-looking
statements in this document should be evaluated together with the many
uncertainties that affect our businesses, particularly those mentioned in the
cautionary statements in Part 1 of our 1998 Form 10-K and in our periodic
reports on Form 10-Q and Form 8-K which we incorporate by reference.
# # #
<PAGE> 1
Exhibit 99.4
Pfizer Inc.
---------------------
Fall Analysts Meeting
November 16, 1999
---------------------
This presentation contains forward-looking statements that involve risks and
uncertainties. These statements may differ materially from actual future events
or results. Readers are referred to the documents filed by Pfizer with the SEC,
which identify important risk factors that could cause actual results to differ
from those contained in the forward-looking statements.
These materials include analysts' estimates and other information prepared by
third parties for which Pfizer assumes no responsibility. In addition, certain
statements regarding synergies and other projections and information contained
in this presentation are based on publicly available information regarding
Warner-Lambert. Pfizer undertakes no obligation to review or confirm analysts'
expectations or estimates or such publicly available information or to release
publicly any revisions to any forward-looking statements to reflect events or
circumstances after the date hereof or to reflect the occurrence of
unanticipated events.
- -------------------------------------------------------------------------------
<PAGE> 2
- --------------------------------------------------------------------------------
[Pfizer LOGO] Agenda
- WELCOME
- WILLIAM C. STEERE, JR., CHAIRMAN AND CEO
- Financial Performance
- David L. Shedlarz, Executive VP and CFO
- Pharmaceutical Operations
- Karen L. Katen, Senior VP and President - US Pharmaceuticals
- Research and Development
- John F. Niblack, Vice Chairman
- George M. Milne, Jr., Senior VP and President - Central Research
- Strategic Goals and Positioning
- William C. Steere, Jr., Chairman and CEO
- Henry A. McKinnell, Ph.D., President and COO
- --------------------------------------------------------------------------------
[Pfizer LOGO] Year-to-Date 1999 Financial Results*
<TABLE>
<CAPTION>
($ Millions, Except per Share Data)
% Change
---------
<S> <C> <C>
Total Revenue $11,697 21
Income Before Taxes 3,454 28
Net Income 2,430 27
Diluted EPS $0.62 27
</TABLE>
* Excluding 1999 Trovan Inventory Charge; % Change Also Excludes 1998
Discontinued Operations and Certain Significant 1998 Charges
- -------------------------------------------------------------------------------
[Pfizer LOGO] Industry-Leading Revenue Growth
YTD 1999 Revenues - Continuing Operations
(% Change)
-------
0 6 7 9 11 13 14 15 17 20* 20* 21
AHP ABT SBH LLY BMY PNU SGP AZ JNJ WLA MRK PFE
-------
*Adjusted for the Impact of Accounting Changes
- -----------------------------------------------------------------------------
[Pfizer LOGO] Unmatched Product Breadth
YTD 1999 Pharmaceutical Revenues
<TABLE>
<CAPTION>
($ Millions) % Change
<S> <C> <C> <C>
$8,723 33
[Zyrtec LOGO] 417 36
[Cardura LOGO] 579 15
[Diflucan LOGO] 723 8
[Viagra LOGO] 751 36
[Zithromax LOGO] 876 32
[Zoloft LOGO] 1,518 13
[Lipitor LOGO]
[Celebrex LOGO] 1,645 148
[Aricept LOGO]
[Norvasc LOGO] 2,214 19
</TABLE>
<PAGE> 3
- ----------------------------------------------------------------------------
[Pfizer LOGO] Comparative Product Breadth
<TABLE>
<CAPTION>
# Products
Company # Products >$500 Million
>$500 Million in Estimated 1999
in Estimated 1999 Sales Sales and >10% Growth
<S> <C> <C>
* PFIZER 10 9
* Merck 9 4
* AstraZeneca 7 5
* Bristol-Myers Squibb 5 4
* WARNER LAMBERT 5 3
* Johnson & Johnson 5 1
* Schering-Plough 3 3
* SmithKline Beecham 4 0
* Lilly 3 2
* AMERICAN HOME PRODUCTS 3 1
</TABLE>
- ------------------------------------------------------------------------
[Pfizer LOGO] Impressive Product Depth/Youth
Nine Months 1999
% of
Pharmaceutical %
Revenues Growth
* Norvasc 21% +19%
* Lipitor/Celebrex/Aricept 15% +148%
* Zoloft 14% +13%
* Zithromax 8% +32%
* Diflucan 7% +8%
* Viagra 7% +36%
* Zyrtec 4% +36%
---
76%
- ----------------------------------------------------------------------------
[Pfizer LOGO] Strong, High-Quality Growth
YTD 1999 Diluted EPS* Increases
(% Change)
-----
(1) 12 13 13 14 15 15 16 18 20 27 34
AHP ABT SBH JNJ MRK PNU BMY LLY AZ SGP PFE WLA
-----
* Continuing Operations
- ------------------------------------------------------------------------------
[Pfizer LOGO] Strong Profitability
YTD 1999 Profit Margin*
(% of Revenues)
<TABLE>
--------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
15.7 20.8 22.8 22.8 23.3 24.0 24.5 25.6 29.1 30.4 30.5 33.3
PNU WLA AZ AHP SBH JNJ MRK ABT BMY PFE SGP LLY
--------
</TABLE>
*Income Before Takes and Other Deductions - Net, Excluding Unusual Items
- ------------------------------------------------------------------------------
<PAGE> 4
- --------------------------------------------------------------------------------
[Pfizer LOGO] Profit Margin Improvement
(% of Revenues)
<TABLE>
<CAPTION>
1989 1989 1989 1989
Actual* 1999 YTD Actual* 1999 YTD Actual* 1999 YTD Actual* 1999 YTD
<S> <C> <C> <C> <C> <C> <C> <C>
27.6 13.0** 41.0 39.4 11.8 17.2 19.6 30.4**
------------------ -------------------- ------------------- ----------------------
Cost of Sales SI&A R&D Income Before Taxes
and Other
Deductions - Net
</TABLE>
* Continuing Operations
** Excluding Trovan Inventory Charge
- --------------------------------------------------------------------------------
[Pfizer LOGO] Leveraging Past Investments
YTD 1999 SI&A Expenses
<TABLE>
<CAPTION>
(% of Revenues)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
15.2 21.2 27.0 29.8 34.5 36.9 37.1 37.1 37.4 38.0 39.4 46.4
MRK ABT LLY AZ BMY SBH AHP JNJ SGP PNU PFE WLA
</TABLE>
- --------------------------------------------------------------------------------
[Pfizer LOGO] 1999 Full-Year Prospects
- - Excellent Performance From Industry's Broadest Product Portfolio
- - Continued Profit Margin Expansion
- - Industry-Leading R&D Investment of About $2.8 Billion
- - Highest Revenue and Diluted EPS Growth of the Top 10 Pharmaceutical Companies
- --------------------------------------------------------------------------------
[Pfizer LOGO] 1999 Full-Year Prospects
- - Comfortable with High End of Current Range of Majority of Analysts' Diluted
EPS Estimates of $0.83 to $0.85, Excluding Trovan Inventory Charge and
Potential Y2K Impact
- --------------------------------------------------------------------------------
[Pfizer LOGO] 2000 Prospects
- - Substantial Double-Digit Revenue Growth
- - Additional Profit Margin Expansion
- - Targeting 20% Earnings Growth
- --------------------------------------------------------------------------------
[PFIZER LOGO] Long-Term Prospects for Strong Performance
1999-2002 Forecast -- Pfizer Inc.
($ Billion, Except per Share Data)
<TABLE>
<CAPTION>
1999 2000 2001 2002 CAGR
'99-'02
<S> <C> <C> <C> <C> <C>
Total Revenues 16.2 18.8 21.8 25.2 16%
Net Income 3.3 4.0 4.8 5.7 20%
Diluted EPS $0.85 $1.02 $1.22 $1.47 20%
</TABLE>
- --------------------------------------------------------------------------------
<PAGE> 5
- --------------------------------------------------------------------------------
[PFIZER LOGO] Agenda
- - Welcome
- William C. Steere, Jr., Chairman and CEO
- - Financial Performance
- David L. Shedlarz, Executive VP and CFO
- - Pharmaceutical Operations
- Karen L. Katen, Senior VP and President - US Pharmaceuticals
- - Research and Development
- John F. Niblack, Vice Chairman
- George M. Milne, Jr., Senior VP and President - Central Research
- - Strategic Goals and Positioning
- Henry A. McKinnell, Ph.D., President and COO
- William C. Steere, Jr., Chairman and CEO
- ------------------------------------------------------------------------------
[Pfizer LOGO]
1999 Analyst Meeting
Karen Katen
November 16, 1999
- ------------------------------------------------------------------------------
[Pfizer LOGO] Decade of Unprecendented Growth
(PPG Reserves, $ Billions)
1990-1999E
- - 4+ Fold Increase
- - 17% CAGR
- - $11 Billion Growth
[BAR CHART]
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$3.3 $3.8 $4.6 $5.1 $5.8 $7.1 $8.6 $9.7 $11.7 $14+
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999E
</TABLE>
- -------------------------------------------------------------------------------
[Pfizer LOGO] Worldwide Sales vs. Market Growth Index*
Rx-only Plus Co-Promote Share
(MAT 2Q99)
Top 10 Pharmaceutical Companies
(100=Market Growth)
[BAR CHART]
<TABLE>
<CAPTION>
TOP FIVE BOTTOM FIVE
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
100=MARKET GROWTH
121 117 106 106 106
Warner-Lambert Pfizer Astra J&J Schering A&P Sanofi Glaxo Bayer Novartis
Zeneca Plough 97 97 96 96 96
</TABLE>
Source: IMS International
* Includes Top 20 Companies Ranked by Rx-only Plus Co-Promote share of sales
Includes Alliance Sales Proportionate to Promotional
Effort Excludes OTCs (When Possible) and Nutritionals
- ------------------------------------------------------------------------------
<PAGE> 6
- --------------------------------------------------------------------------------
[Pfizer LOGO] Rising to Top of Worldwide Rankings
Rx-Only: Excludes Co-Promote Share
1990 1H 1999
1. Merck 1. AstraZeneca
2. BMS 2. Merck
3. Glaxo Wellcome 3. Glaxo Wellcome
4. SKB 4. PFIZER
5. Ciba-Geigy 5. Aventis*
6. AMERICAN HOME PRODUCTS 6. Novartis
7. Hoechst 7. BMS
8. J&J 8. J&J
9. Lilly 9. Lilly
10. Bayer 10. Roche
11. Roche 11. SmithKline Beecham
12. Sandoz 12. AMERICAN HOME PRODUCTS
13. Rhone-Poulenc 13. Abbott
14. PFIZER 14. WARNER-LAMBERT
* Pro Forma
Source: IMS International
Excludes OTCs (When Possible) and Nutritionals
Excludes Alliance Sales Proportionate to Promotional Effort
- --------------------------------------------------------------------------------
[Pfizer LOGO] Rising to Top of Worldwide Rankings
Rx-Only Plus Co-Promote Share
1990 1H 1999
1. Merck 1. PFIZER
2. BMS 2. Merck
3. Glaxo Wellcome 3. Glaxo Wellcome
4. SKB 4. AstraZeneca
5. Ciba-Geigy 5. Aventis*
6. AMERICAN HOME PRODUCTS 6. Novartis
7. Hoechst 7. BMS
8. J&J 8. J&J
9. Lilly 9. Lilly
10. Bayer 10. Roche
11. Roche 11. SmithKline Beecham
12. Sandoz 12. AMERCIAN HOME PRODUCTS
13. Rhone-Poulenc 13. Abbott
14. PFIZER 14. WARNER-LAMBERT
* Pro Forma
Source: IMS International
Excludes OTCs (When Possible) and Nutritionals
Includes Alliance Sales Proportionate
- --------------------------------------------------------------------------------
[Pfizer LOGO] Pfizer Sales Rankings by Region
Rx-Only Plus Co-Promote Share
1997 1998 1H 1999
---- ---- -------
GLOBAL 4 2 1
U.S. 3 2 1
Europe 11 11 7
Japan/Asia/AfME 10 8 5
LA/Canada 10 10 4
Source: IMS International
Includes Alliance Sales Proportionate to Promotional Effort
Excludes OTCs (When Possible) and Nutritionals
- --------------------------------------------------------------------------------
[Pfizer LOGO] Leveraging Strengths Worldwide
[Illustration of Globe With Pfizer Logos in Asia, Australia, North America,
South America, Europe and Africa Connected by Arrows]
- --------------------------------------------------------------------------------
<PAGE> 7
- --------------------------------------------------------------------------------
[Pfizer LOGO] Exchanging Best Practices
Field Force Management Techniques
[PICTURE OF UNITED STATES AND TURKEY WITH ARROW POINTING FROM UNITED STATES TO
TURKEY]
Areas of Focus
- Customer Data
- Promotional Effort
- Performance Measurement
- Training
Unasyn Sales Performance
<TABLE>
<CAPTION>
Projected Actual
(% Growth) (% Growth)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
- -2% -4% -5% -6% -8% -10% -2% -4% 5% 6% 7% 8%
'95 '96 '97 '98 '99 '00 '95 '96 '97 '98 '99 '00
</TABLE>
- --------------------------------------------------------------------------------
[Pfizer LOGO] Exchanging Best Practices
Sharing Product Launch Experiences
[GRAPHIC OF FRANCE AND JAPAN WITH AN ARROW POINTING FROM FRANCE TO JAPAN WITH
THE WORDS "ARICEPT LAUNCH STRATEGY"]
- Meeting with French Managers to Co-develop Launch Strategy
- Advocacy Development
- Specialist Support
- --------------------------------------------------------------------------------
[Pfizer LOGO] Strong Momentum for Future Success
(PPG Revenues, $ Billions)
[LINE CHART ILLUSTRATING PPG REVENUES RISING FROM $3.3 BILLION IN 1990 TO $14+
BILLION IN 1999E AND CONTINUING TO RISE IN THE FUTURE]
- Growing Market Share
- Expanding Markets
- New Indications, Dosage Forms, and Delivery Systems
- Ongoing Patent Protection
- --------------------------------------------------------------------------------
[Pfizer LOGO] Strong Momentum for Future Success
(PPG Revenues, $ Billions)
[LINE CHART ILLUSTRATING PPG REVENUES RISING FROM $3.3 BILLION IN 1990 TO $14+
BILLION IN 1999E AND CONTINUING TO RISE IN THE FUTURE]
- Growing Market Share
- Expanding Markets
- New Indications, Dosage Forms, and Delivery Systems
- Ongoing Patent Protection
- --------------------------------------------------------------------------------
[Pfizer LOGO] 1999E PPG Performance
(Revenues, $Billions)
[BAR CHART]
<TABLE>
<S> <C> <C>
1998 $11.7 Billion 22% Growth
1999E $14+ Billion
</TABLE>
- Growth of In-Line Portfolio
- Share Growth in Established Markets
- Market Expansion
- New Product Launches
- --------------------------------------------------------------------------------
<PAGE> 8
- --------------------------------------------------------------------------------
[Pfizer LOGO] Three Most Successful Launches
in Pharmaceutical Industry History
1997 Most Successful
[Lipitor LOGO] Products Launched
Each Year Since 1997
[LINE CHART ILLUSTRATING
SALES GROWTH FROM $0 TO
$600MM]
1998
[Viagra LOGO]
[LINE CHART MOVING FROM
$0 TO OVER $600MM]
1999
Celebrex LOGO
[LINE CHART ILLUSTRATING
SALES GROWTH FROM $0 TO
$900MM]
Celebrex is a Trademark of GD Searle and Company
- --------------------------------------------------------------------------------
[Pfizer LOGO] PPG In-Line Product Growth
<TABLE>
<CAPTION>
Combined
Launch Date Sales Growth
----------- -------------
<S> <C> <C> <C> <C>
Difulcan 1989
Cardura 1990
Zoloft 1991 Sustaining
Zithromax 1992 Growth of 1998 17%
Norvasc 1992 In-Line
Glucotrol XL 1995 Products 1999E 17%
Zyrtec 1996
</TABLE>
Source: Pfizer
- --------------------------------------------------------------------------------
[Pfizer LOGO] U.S. NRx Growth 1997
Rx-Only Plus Co-Promote Share
<TABLE>
<CAPTION>
1H 1999 Ranking* U.S. NRx Growth YTD 1999
[HORIZONTAL BAR CHART ILLUSTRATING
NRx GROWTH IN 1999]
<S> <C>
1. PFIZER +26%
2. Merck +5%
3. Glaxo Wellcome -9%
4. AstraZeneca +20%
5. Aventis -18%
6. Novartis -10%
7. BMS +7%
8. J&J +1%
9. Lilly -1%
10. Roche -28%
12. AHP -1%
14. WARNER-LAMBERT +35%
</TABLE>
Source: IMS International
Excludes OTCs (When Possible) and Nutritionals
Includes Alliance Sales Proportionate to Promotional Effort
- --------------------------------------------------------------------------------
<PAGE> 9
- --------------------------------------------------------------------------------
[Pfizer LOGO]
U.S. NRx Growth 1998
Ranked on Rx-Only Plus Co-Promote Share
<TABLE>
<CAPTION>
1H 1999 Ranking U.S. NRx Growth 1998 vs. 1997
- --------------- -----------------------------
<S> <C>
1. PFIZER +30%
2. Merck - 1%
3. Glaxo Wellcome - 5%
4. AstraZeneca +33%
5. Aventis - 2%
6. Novartis - 5%
7. BMS -11%
8. J&J + 2%
9. Lilly - 1%
10. Roche -25%
12. AMERICAN HOME PRODUCTS -11%
14. WARNER-LAMBERT +18%
</TABLE>
Source: IMS International
Excludes OTCs (When Possible) and Nutritionals
Includes Alliance Sales Proportionate to Promotions Effort
- --------------------------------------------------------------------------------
[Pfizer LOGO]
U.S. NRx Growth 1999 YTD
Rx-Only Plus Co-Promote Share
<TABLE>
<CAPTION>
1H 1999 Ranking U.S. NRx Growth YTD 1999
- --------------- ------------------------
<S> <C>
1. PFIZER +27%
2. Merck +3%
3 Glaxo Wellcome +2%
4. AstraZeneca +27%
5. Aventis +1%
6. Novartis 0%
7. BMS -5%
8. J & J +5%
9. Lilly -5%
10. Roche -9%
12. AMER. HOME PRODUCTS -6%
14. WARNER-LAMBERT +12%
</TABLE>
Source: IMS International
Excludes OTCs (When Possible) and Nutritionals
Includes Alliance Sales Proportionate to Promotional Effort
- --------------------------------------------------------------------------------
<PAGE> 10
- --------------------------------------------------------------------------------
[Pfizer LOGO]
U.S. NRx Growth 1996-1999 YTD
Rx-Only Plus Co-Promote Share
<TABLE>
<CAPTION>
1H 1999 Ranking U.S. NRx Growth 1996-1999 YTD
- --------------- -----------------------------
<S> <C>
1. PFIZER +84%
2. Merck +14%
3. Glaxo Wellcome -12%
4. AstraZeneca +63%
5. Aventis -21%
6. Novartis -14%
7. BMS -2%
8. J & J +7%
9. Lilly -6%
10. Roche -62%
12. AMERICAN HOME PRODUCTS -14%
14. WARNER-LAMBERT +63%
</TABLE>
Source IMS International
Excludes OTCs (When Possible) and Nutritionals
Includes Alliance Sales Proportionate to Promotional Effort
- -------------------------------------------------------------------------------
[Pfizer LOGO] 1999E PPG Billion-Dollar Products
[Graphic Depicting Seven Listed $1+ Billion Products]
[Lipitor LOGO]
[Diflucan LOGO]
[Norvasc LOGO] 7 $1+
[Celebrex LOGO] Billion
[Zoloft LOGO] Products
[Viagra LOGO]
[Zithromax LOGO]
Source: IMS International, Pfizer Analysis
- --------------------------------------------------------------------------------
[Pfizer LOGO] Product Sales Ranking Within
Therapeutic Categories
<TABLE>
<CAPTION>
GLOBAL U.S.
PRODUCT YTD 2Q99 YTD 3Q99
<S> <C> <C>
Norvasc #1 #1
Aricept #1 #1
Diflucan/VC #1 #1
Viagra #1 #1
Celebrex #1 #1
Lipitor #3 #1
Zithromax #2 #1
Cardura BPH #5 #2
Zoloft #3 #2
Glucotrol XL #5 #2
Zyrtec NA #2
</TABLE>
Source: IMS International
- --------------------------------------------------------------------------------
[Pfizer LOGO] 1999E PPG Billion-Dollar Products
[Graphic Depicting Seven Listed $1+ Billion Products]
[Lipitor LOGO]
[Diflucan LOGO]
[Norvasc LOGO] 7 $1+
[Celebrex LOGO] Billion
[Zoloft LOGO] Products
[Viagra LOGO]
[Zithromax LOGO]
Source: IMS International, Pfizer Analysis
- --------------------------------------------------------------------------------
<PAGE> 11
- --------------------------------------------------------------------------------
[Pfizer LOGO] Capabilities
8-PIECE JIGSAW PUZZLE WITH INTERLOCKING
PIECES TITLED AS FOLLOWS:
Best-in-Class Products
Organizational Leverage
Strategic and Analytic Excellence
Customer Focus
Execution
High Impact Sales and Marketing
Innovative Clinical Programs
Consumer-driven Marketing
- --------------------------------------------------------------------------------
[Pfizer LOGO] Industry-Leading Global Sales Force
<TABLE>
<CAPTION>
U.S. SPAIN AUSTRALIA EGYPT
<S> <C> <C> <C>
[FLAG OF COUNTRY] [FLAG OF COUNTRY] [FLAG OF COUNTRY] [FLAG OF COUNTRY]
* #1 in Quality * 80% GP Approval * Best Service * Best Image for
* #1 in Productivity Rating Pharmaceutical
* #1 With HMO Medical Directors Company
KOREA TAIWAN ITALY MEXICO
[FLAG OF COUNTRY] [FLAG OF COUNTRY] [FLAG OF COUNTRY] [FLAG OF COUNTRY]
* #1 in Medical Information * Above Average in * 88% GP Approval * #1 in Physician
* #1 Ethical Business Conduct Representative Rating Image
Professionalism
</TABLE>
- --------------------------------------------------------------------------------
[Pfizer LOGO] Best-in-Class U.S. Sales Organization
#1 in Productivity
<TABLE>
<CAPTION>
CALLS/REP DETAILS/REP
--------- -----------
<S> <C> <C>
1. PFIZER 686 1,032
2. Glaxo Wellcome 505 848
3. J&J 538 730
4. SKB 458 659
5. AHP 441 617
6. BMS 418 614
7. WARNER-LAMBERT 418 607
8. Eli Lilly 399 571
9. Aventis 379 528
10. AstraZeneca 192 254
</TABLE>
Source: Scott-Levin, YTD August
- -------------------------------------------------------------------------------
[Pfizer LOGO] Best-in-Class U.S. Sales Organization
Top 15 Detailed Products
1. Celebrex
2. ZITHROMAX
3. Claritin
4. Lipitor
5. Allegra 5 OUT OF TOP 15
6. Prozac
7. ZYRTEC
8. Biaxin
9. VIAGRA
10. ZOLOFT
11. Vioxx
12. Celexa
13. Cipro
14. NORVASC
15. Prevacid
Source: Scott-Levin, YTD August
- --------------------------------------------------------------------------------
<PAGE> 12
- --------------------------------------------------------------------------------
[Pfizer LOGO]
Best-in-Class U.S. Sales Organization
Top 15 Detailed Products
1. CELEBREX
2. ZITHROMAX
3. Claratin
4. LIPITOR
5. Allegra
6. Prozac 7 OF TOP 15
7. ZYRTEC
8. Biaxin
9. VIAGRA
10. ZOLOFT
11. Vioxx
12. Celexa
13. Cipro
14. NORVASC
15. Prevacid
Source: Scott-Levin, YTD August
- --------------------------------------------------------------------------------
[Pfizer LOGO] Rapidly Growing Image
in U.S. Managed Care
[Chart comparing the ranking of over fifty U.S. Pharmaceutical companies' image
in U.S. Managed Care with Pfizer ranked 49th in Spring 1997 and improving to
7th in Spring 1999]
Reasons for Improved Ranking:
- - Attitude Towards Managed Care
- - Meeting Customer Needs
- - Knowledgable Representatives
Source: Scott-Levin, June 1999
- -------------------------------------------------------------------------------
[Pfizer LOGO] Sustaining Customer Focus While Rapidly
Growing and Evolving
<TABLE>
<CAPTION>
U.S. FIELD
Year FORCE SIZE EVOLVING STRUCTURE
- ---- ----------
<S> <C> <C> <C>
1995 2,423 * Co-Promotes
1996 3,456 * Internal
1997 4,302 * External
1998 5,341 * New Specialty Field
1999 5,562 Forces Customer
* Local Market Focus Focus
* Mirroring
* Field Force
Clustering
* Flex Field Force
</TABLE>
Includes Managers and
Representatives
- --------------------------------------------------------------------------------
<PAGE> 13
- --------------------------------------------------------------------------------
[Pfizer LOGO] Building on Strengths
[Graphic illustrating the integration of the "Best-in-Class Field Force" with
the "Best-in-Class Medical Marketing" and reflecting the resulting "Share
Growth in Existing Markets" and "Expansion of New or Underdeveloped Markets"]
- --------------------------------------------------------------------------------
[Pfizer LOGO]
Growing Market Share
in Existing Markets
U.S. NRx Share 2Q 1999 vs. 2Q 1998
Anti-Infective Category
<TABLE>
<CAPTION>
2Q98 2Q99
---- ----
<S> <C> <C> <C>
ZITHROMAX 8.5% 11.7% +38%
AUGMENTIN 6.3% 7.1% +13%
CIPRO 5.1% 5.3% + 4%
BIAXIN 5.1% 4.8% (6%)
</TABLE>
- --------------------------------------------------------------------------------
[Pfizer LOGO] Growing Market Share
in Existing Markets
(U.S. NRx Share 2Q99 vs. 2Q98)
[Bar graph depicting the market share in the lipid-lowering category]
Lipid-lowering Category
<TABLE>
<C> <C> <C> <C>
----------- ----------- ----------- ----------
+11% (10%) (15%) (44%)
----------- ----------- ----------- ----------
37.6% 40.7% 24.3% 21.9% 16.8% 14.3% 6.1% 3.4%
2Q98 2Q99 2Q98 2Q99 2Q98 2Q99 2Q98 2Q99
Lipitor Zocar Provachol Mevacor
</TABLE>
- --------------------------------------------------------------------------------
<PAGE> 14
- --------------------------------------------------------------------------------
[Pfizer LOGO] Market Expansion
Worldwide Alzheimer's
Disease Category
Aricept comprises 90% of the Market
Market Growth of
1,733%
[Pie Chart indicating 90% market share for
Aricept and 10% for Other]
$30 Million Market $550 Million Market
1994 1999E
- -------------------------------------------------------------------
Worldwide Erectile
Dysfunction Category
Viagra Comprising 85% of the market
Market Growth of
1,020%
[Pie chart illustrating 85% market share for
Viagra and 10% for Others]
$116 Million Market $1.3 Billion Market
1994 1999E
- --------------------------------------------------------------------------------
[Pfizer LOGO] 1999E Worldwide Performance
<TABLE>
<CAPTION>
($ Billions) % Growth
- ------------
FY1999 Estimate
<S> <C>
Norvasc $3.0 18%
Zoloft $2.0 11%
Zithromax $1.3 28%
Viagra $1.1 35%
Diflucan $1.0 8%
Zyrtec $0.6 39%
</TABLE>
<TABLE>
<CAPTION>
YTD3Q 1999 Total Product Sales
- -------------------------------
<S> <C>
Lipitor $2.5 77%
Celebrex $1.0 **
Aricept $0.4 63%
</TABLE>
- --------------------------------------------------------------------------------
[Pfizer LOGO] [NORVASC LOGO]
- FY 1999E $3.0 Billion
- 18% Growth
- #1 Cardiovascular Medicine in the World
- Growing at Twice the Market Rate
- Chosen for Premier Clinical Trials
- --------------------------------------------------------------------------------
<PAGE> 15
- --------------------------------------------------------------------------------
[Pfizer LOGO]
Expanding the Market
[Norvasc LOGO]
PREVENT -> Coronary Artery Disease
Hospitalization for Unstable Angina
[Graph depicting 33% difference in hospitalization for unstable angina after 36
months comparing the use of a placebo versus NORVASC]
Major Vascular Procedures
[Graph depicting a 42% difference in major vascular procedures after 36 months
comparing the use of a placebo versus NORVASC]
- --------------------------------------------------------------------------------
[Pfizer LOGO] [Lipitor LOGO]
- YTD 3Q 1999 Total Product Sales:
- 77% Growth
- #1 Statin in the U.S.
- #3 Statin in the World MAT 2Q 1999
- #2 Statin in the World YTD 2Q 1999
- --------------------------------------------------------------------------------
[Pfizer LOGO] [Lipitor LOGO]
Worldwide Statin Market Sales Share
[Pie Chart]
Demonstrating Potential Lipitor Market Share Worldwide as increasing from 24%
due to the following growth:
39% in the U.S.
30% in Canada, Australia, Italy and Belgium
24% in the U.K., Netherlands and Sweden
- --------------------------------------------------------------------------------
[Pfizer LOGO] [Zoloft LOGO]
* Fy 1999E $2.0 Billion
* 11% Growth
* Launched 4-10 Years after Prozac
* #1 Antidepressant in Australia, Turkey,
Venezuela, and 5 Other Markets
* #2 Antidepressant in the U.S.
* #1 in Long-term Care
* #1 with Neurologists, Ob/Gyns, and
Pediatricians
* #1 in 25 of 65 Sales Districts
- --------------------------------------------------------------------------------
[Pfizer LOGO] Growth Opportunity:
Post-traumatic Stress Disorder
[Zoloft LOGO]
[GRAPHIC DEPICTING A MIDDLE CIRCLE ENTITLED
"Depression" WITH OUTLYING CIRCLES ENTITLED Post-traumatic
"Panic Disorder," "OCD" and "PTSD"] Stress Disorder
- Lifetime Prevalence = 8%
- 50% Comorbidity with
Depression
- 18-Month Lead on Other
SSRIs
- --------------------------------------------------------------------------------
[Pfizer Logo] [Aricept Logo]
- - YTD 3Q 1999 Total Product Sales
$0.4 Billion
- - 63% Growth
- - Standard of Care in Cognitive Therapy
- - Over One Million Alzheimer's Patients
Treated Worldwide
- --------------------------------------------------------------------------------
<PAGE> 16
- --------------------------------------------------------------------------------
[Pfizer LOGO] Proving Therapeutic Value
Landmark 1-Year Studies
[Aricept LOGO]
[Line chart illustrating clinical decline substantially less than nontreatment
resulting in maintenance of patient function and delay of institutionalization
when using Aricept]
Maintenance of Patient Function
Delay Institutionalization (Nursing Home)
- --------------------------------------------------------------------------------
[Pfizer LOGO] [Zithromax LOGO]
- - FY 1999E $1.3 Billion
- - 28% Growth
- - #1 Branded Antibiotic in the U.S.
- - #2 Branded Antibiotic in the World
- --------------------------------------------------------------------------------
[Pfizer LOGO] European Refocus Program
[Zithromax LOGO]
Zithromax Sales Trend
- ---------------------
[Bar graph depicting a 12% decline in Sales Trend before the program and a 21%
increase in Sales Trend after the program]
and
Zithromax Rank
- --------------
[Chart depicting an increase in Zithromax's ranking from 5, prior to the
program, to 3 after the program]
- --------------------------------------------------------------------------------
[Pfizer LOGO] [Diflucan LOGO]
- - FY 1999E $1.0 Billion
- - 8% Growth
- - #1 Antifungal Agent
- - A Revolution in Medicine
- - Prophylaxis in BMT
- - Empiric Therapy in ICU
- --------------------------------------------------------------------------------
[Pfizer LOGO] [VIAGRA LOGO]
- FY 1999E $1.1 Billion
- 35% growth
- 6 Million Patients Treated
- U.S. Prescriptions at Record Level
- Around the World, 3 Tablets Used Every Second
- --------------------------------------------------------------------------------
[Pfizer LOGO] Growing the Market
[Viagra LOGO]
Viagra Has Increased Patient Presentation
% Increase in Diagnosed ED Patients
+279 +260 +250 +171 +91 +90 +55
Mexico Italy US Brazil France Spain Germany
- --------------------------------------------------------------------------------
<PAGE> 17
- --------------------------------------------------------------------------------
[Pfizer LOGO] Growth Opportunity
Brand Evolution
[Viagra LOGO]
* Making the Experience Truly Inclusive
* Organic and Psychogenic
* Old and Young
* Frequent and Occasional Dysfunction
* All Men and Their Partners
- --------------------------------------------------------------------------------
[Pfizer LOGO] [Celebrex LOGO]
- - Celebrex:
- YTD 3Q 1999 Total Product Sales:
$1.0 Billion
- Record-Setting Launch
- #1 NSAID Brand in US, Canada, and Switzerland
- More Days of Therapy Dispensed in US Than ANY Other NSAID
Celebrex is a Trademark of GD Searle and Company
- --------------------------------------------------------------------------------
[Pfizer LOGO] Powerful Relief Safely Delivered
[Celebrex LOGO]
- - Maximum Relief of Arthritis Pain and Inflammation
- - 24-Hour Relief
- - Significantly Improves Patient Functioning
- - Superb Safety and Tolerability
- Fewer Ulcers
- Neutral Effect Across Doses on GI, Edema, Hypertension
- --------------------------------------------------------------------------------
[Pfizer LOGO] Growth Opportunity
[Celebrex LOGO]
Cox-2 Inhibitors in Cancer
- - Elevated COX-2 Levels in Diseased Tissue
- - COX-2 Inhibitors Slow Tumor Growth in Animals
[Celebrex LOGO] sNDA for FAP
(Familial Adenomatous Polyposis)
Filed: June, 1999
Granted Expedited Review by FDA
Celebrex is a Trademark of GD Searle and Company
- --------------------------------------------------------------------------------
[Pfizer LOGO] [ZYRTEC LOGO]
- - FY 1999E $0.6 Billion
- - 39% Growth
- - Only Brand Approved for Year-round, Indoor and Outdoor Allergies
- - #1 Pediatric Antihistamine in the U.S.
- --------------------------------------------------------------------------------
<PAGE> 18
- --------------------------------------------------------------------------------
[Pfizer LOGO] Turning Product Science Into Patient Benefit
[Zyrtec LOGO]
Two Controlled Trials Prove... Patient Satisfaction
[Line chart illustrating superior [Graphic illustration showing 10-point
performance of Zyrtec versus scale (10 being highest) in satisfaction
Claritin and Allegra in symptom among Zyrtec, Claritin & Allegra
relief] Zyrtec works faster
[Bar chart illustrating patient
satisfaction of Zyrtec versus Claritin
and Allegra.71% extremely or very
satisfied with Zyrtec, 62% extremely
or very satisfied with Claritin and
57% extremely or very satisfied with
Allegra]
- --------------------------------------------------------------------------------
[Pfizer LOGO] Turning Patient Benefit Into Economic Value
[Zyrtec LOGO]
Allergy Suffers: Work/School Productivity
741 Workers 220 students Zyrtec
- 8% - 17% Reduced Hours
Work Impairment Classroom Impairment of Class Missed
Due to Allergies Due to Allergies by 6 Hours
- --------------------------------------------------------------------------------
[Pfizer LOGO]
Global In-Line Products
Growth Opportunity
20% expected growth in 2000 in Nine Major Brands
- $11 Billion in 1999E Revenues
- Patented to 2005+
- Major Line Extensions
- --------------------------------------------------------------------------------
[Pfizer LOGO]
Near Term Opportunities
* Relpax
* Zeldox
* Tikosyn
* Darifenacin
* Valdecoxib
* Vferd
* Inhaled Insulin
- --------------------------------------------------------------------------------
[Pfizer LOGO] The Proven Expertise
[Graphic showing Pfizer's Expertise in Capturing Market Share
and Expanding Markets]
- --------------------------------------------------------------------------------
<PAGE> 19
\
- --------------------------------------------------------------------------------
[Pfizer LOGO] The Future
[Graph showing Pfizer's growth from 1990 to 1999 and beyond as a result of
Sustained Growth and Market Leadership]
- --------------------------------------------------------------------------------
[Pfizer LOGO] The Platform
Growing, Patent-protected Portfolio of Billion Dollar Products, Plus New
Products, Indications and Dosage Forms Supported by #1 Field Force,
Best-in-Class Medical Marketing, and a Leveraged Global Organization
- --------------------------------------------------------------------------------
[Pfizer 150 LOGO]
R&D Pipeline
Dr. John Niblack
November 1999
- --------------------------------------------------------------------------------
[Pfizer LOGO]
Patent Protection for Major Products and the Next Wave
Chart showing duration of U.S. Patent Protection for Certain Major Products
Vferd, Inhaled Insulin, Darifanacin, Valdecoxib, Zeldox, Relpax, Tikosyn,
Celebrex, Animal Health Products, Viagra, Trovan: beyond 2009
Lipitor, Aricept, Zyrtec, Norvasc, Zithromax: beyond 2007
Zoloft: Until 2006
Diflucon: Until 2004
Procardia XL: Until 2003
Cardura: Until 2000
- --------------------------------------------------------------------------------
[Pfizer LOGO] Pipeline
<TABLE>
<S> <C>
Early Development Full Development
64 drug candidates 27 drug candidates
91 Development Programs
</TABLE>
Psychotherapeutics
Tissue Repair
Immunology
Infections
Allergy/Respiratory
Inflammation
Diabetes
Neurodegeneration
Urogenital
Cardiovascular
Cancer
Obesity
Pain
Atherosclerosis
Osteoporosis
- --------------------------------------------------------------------------------
<PAGE> 20
- --------------------------------------------------------------------------------
[Pfizer LOGO] The Pfizer Pipeline
<TABLE>
<CAPTION>
Near Term NDA Estimated Peak
NCE Launches Dates Year Sales ($ Millions)
- ------------- ------ ------------------------
<S> <C> <C>
Tikosyn.................... Approved $ 100+
Relpax..................... Approvable $1,000+
Zeldox..................... 2000 $1,000+
Vfund...................... 2000 $ 750+
Valdecoxib................. End 2000 $1,000+
Inhaled Insulin............ 2001 $2,000+
Darifenacen................ 2002 $ 750+
</TABLE>
20 Additional Supplemental Indications or
Presentations before 2003
G4 Early Development Programs
- --------------------------------------------------------------------------------
[Pfizer LOGO]
Pharmaceutical R&D
Output, 1990-1998
New Chemical Entities Advance to Development
[Chart]
1990: 7
1991: 12
1992: 11
1993: 16
1994: 13
1995: 16
1996: 19
1997: 19
1998: 21
- --------------------------------------------------------------------------------
[Pfizer LOGO] Animal Health Development Portfolio
[Graphic of a Globe]
(Graphic indicating the breadth of Veterinarian products being developed by
Pfizer for companion animals and livestock.
- --------------------------------------------------------------------------------
[Pfizer LOGO] Animal Health Development Portfolio
Number of Candidates
<TABLE>
<CAPTION>
Companion Animal Livestock
<S> <C> <C>
1997 8 3
1998 13 10
1999 14 14
</TABLE>
- --------------------------------------------------------------------------------
<PAGE> 21
- --------------------------------------------------------------------------------
[Pfizer LOGO] Pfizer / Warner-Lambert
Research Complementarities
- - Cancer
- - Women's Health
- - Mental Illness
- - Diabetes
- --------------------------------------------------------------------------------
[Pfizer LOGO] An Integrated Suite of Highly
Leveraged Investments
[Neurogen AIDD LOGO] - Leadership
[ARQULE LOGO] - Synergy
[EVOTEC LOGO] - Competitive Advantage
[AURORA LOGO - Integration
Biosciences Corporation]
Chemo-Infermatics: Library Synthesis
-- --
HTS -- Sample Bank
- --------------------------------------------------------------------------------
[Pfizer LOGO] Tikosyn
Atrial Fibrilation (AF)
Approved October 1999
* Cardioverts AF Patients and Maintains Normal Heat Rythm
* Available in Early 2000
- --------------------------------------------------------------------------------
[Pfizer LOGO] Tikosyn
Atrial Fibrillation (AF)
Capture Share
- First New AF Product in 10 Years
Develop Market
- Unmet Clinical Need, "The Next Frontier"
- Leverage To/From CV Product Line
- --------------------------------------------------------------------------------
[Pfizer LOGO] Relpax
Migraine Headache
Approvable October 1999
- - Rapid Onset of Action
- - Superior Efficacy
- - Low Headache Recurrance Rate
- - Effective in Menstrually Associated Migraine
- --------------------------------------------------------------------------------
<PAGE> 22
- --------------------------------------------------------------------------------
[Pfizer LOGO] Relpax
Migraine
[Pie chart showing 13% of treated Migraine sufferers and 85% untreated Migraine
sufferers]
Capture Share
- Superior Pain Relief
- Return to Function
Develop Market
- As Many Migraineurs
- Antimigraines one-fifth of Antidepressant Sales
- --------------------------------------------------------------------------------
[Pfizer LOGO] Inhaled Insulin Diabetes
Hoechst Marion Roussel
New Therapy in Diabetes
- - Type 1 and Type 2 Diabetes
- - Patient-friendly Insulin Delivery System
- --------------------------------------------------------------------------------
[Pfizer LOGO] Uncontrolled Diabetes
[Pie Chart depicting over 142 million patients with Diabetes, and 42-57 million
patients having uncontrolled Diabetes]
- - Uncontrolled Diabetes Results in Diabetes Related Complications.
- --------------------------------------------------------------------------------
[Pfizer LOGO] Inhaled Insulin Hoechst Marion Roussel
Superior Control
[Line Chart illustrating superior performance of inhaled insulin plus oral
agents versus oral agents alone in lowering HbA1c levels over a period of 12
weeks]
- --------------------------------------------------------------------------------
[Pfizer LOGO] Inhaled Insulin Diabetes Hoechst Marion Roussel
Insulin Plant Groundbreaking June 1999
Full-scale Global Development Underway at 120 Sites
- --------------------------------------------------------------------------------
<PAGE> 23
- --------------------------------------------------------------------------------
[Pfizer LOGO] Global Diabetes
Incidence Is Growing
[Bar chart illustrating rise of Type 1 and Type 2 diabetes]
<TABLE>
<CAPTION>
Year MM People
- ---- ---------
<S> <C>
1994 110
2000 175
2010 238
</TABLE>
Source: WHO
- --------------------------------------------------------------------------------
[Pfizer LOGO] Zeldox
Psychotic Disorders
Current Status
- - Completed Additional ECG Study
- - Analysis Ongoing
- - Submission Expected 1Q00
- --------------------------------------------------------------------------------
[Pfizer LOGO] Zeldox
Psychotic Disorders
Advantages
- - Treats Positive, Negative, and Depression Symptoms
- - Long-term Efficacy
- - Little Weight Gain
- - Favorable Lipid Effects
- --------------------------------------------------------------------------------
[Pfizer LOGO] Antipsychotics
[Bar chart illustrating growth of total market from $3 billion in 1997 to
approximately $9 billion in 2010]
Capture Share
- Unique Benefits
- Efficacy
- Safety
Develop Market
- IM Formulation
- Other Disorders
Source: IMS, Genesis Group, Pfizer Data
- --------------------------------------------------------------------------------
<PAGE> 24
- --------------------------------------------------------------------------------
[Pfizer LOGO] [Vfend LOGO]
Targeting Serious Fungal Infections
- - High Unmet Medical Need
- Cerebral Fungal Infections
- Eye Infections
- Resistant Candidia
- - Acute Invasive Aspergillosis
- - Empirical Therapy in High Risk Patients
- Leukemia
- Bone Marrow Transplants
- - Childhood Infections
- -------------------------------------------------------------------------------
[Pfizer LOGO] Darifenacin-Overactive Bladder (OAB)
* Pharmacology
* Potent M(3) Receptor Antagonist
* Inhibits Bladder Contractility
* Intrinsically More Selective for Bladder than Detrol(R) and Ditropan(R)
* PHASE III BEGUN
* NDA TARGET 2002
- -------------------------------------------------------------------------------
[Pfizer LOGO] Darifenacin
Comparative Dynamics
[Graph illustrating the superior effect of Darifenacin 30mg od on salivary flow
and bladder contractility versus Ditropan(R) 5mg tid]
- --------------------------------------------------------------------------------
[Pfizer LOGO] Darifenacin
Selectivity
[Graph illustrating Darifenacin's lower incidence of blurred vision for 7.5mg,
15mg and 30mg dosages of Darifenacin compared to 15mg Dirtorpan(R)]
- ----------------------------------------------------------------------------
[Pfizer LOGO] Valdecoxib [Searle LOGO]
Second Generation Arthritis Treatment
- - Co-developing with Searle-Monsanto
- - Broad Array of Indications
- RA
- OA
- Pain
- - In Phase III
- -----------------------------------------------------------------------------
<PAGE> 25
- --------------------------------------------------------------------------------
[Pfizer LOGO] New Indications
Adding Value to Marketed Products
<TABLE>
<S> <C> <C>
Zithromax Zoloft Norvasc
- - Atherosclerosis + PTSD - Congestive Heart
- - MAC Treatment + Oral Liquid Form Failure
- - 3-day Treatment - Pediatric Depression - Norvasc-Lipitor
- Social Phobia Combo
- Dysthymia - Pediatric
- PMDD Indications
Aricept Celebrex Zyrtec
- - Oral Liquid Form + Familial Colon Polyps - Pseudoephedrine
- Sporadic Colon Polyps Combo
- Pain - Pediatric
Indications
Lipitor Status Viagra
- - Benefits of Even + Filed - Female Sexual
Lower Lipid Levels - Underway Dysfunction
</TABLE>
- --------------------------------------------------------------------------------
[Pfizer LOGO] Adding Value
Zithromax
[Graphical representation of expansion of drug uses for a new indications after
its initial launch]
<TABLE>
<CAPTION>
Year of
Indications Approval
- ----------- --------
<S> <C>
3-day Dosing, MAC Treatment and
Atherosclerosis 2000-01E
IV Pneumonia 1997
CAP/PID 1997
Pediatric Dropper 1997
600mg Tablet 1996
Peds Lower Respiratory Tract
Infection 1996
MAC Prophylaxis 1996
Atypical Pneumonia 1996
Sexually Transmitted Diseases 1996
250mg Tablet 1996
Pediatric 1995
Single-dose Packet 1994
Zithromax Launch 1992
</TABLE>
- --------------------------------------------------------------------------------
[Pfizer LOGO] Zithromax -- WIZARD Study
* Investigating Benefits in Heart Disease
* Over 3,500 Patients Enrolled
* Key Data Available Next Year
- --------------------------------------------------------------------------------
<PAGE> 26
- --------------------------------------------------------------------------------
{Pfizer LOGO] Adding Value
Zoloft
[Graphical representation of expansion of drug uses
for new indications after its initial launch]
<TABLE>
<CAPTION>
Indication Year
<S> <C>
Pediatric Depression 2000E
Liquid Oral 2000E
Dysthymia 2000E
PMDD 2000E
Social Phobia 2000E
PTSD 1998-2000E
Pediatric OCD 1998
Obsessive-Compulsive Disorder 1996
Zoloft Launch 1991
</TABLE>
- --------------------------------------------------------------------------------
[Pfizer LOGO] Zoloft
Post-traumatic Stress Disorder (PTSD)
* Favorable Advisory Committee Recommendation
October 1999
* First Recommended PTSD Approval
* Affects 16 Million Americans Sometime
During Their Life
- --------------------------------------------------------------------------------
[Pfizer LOGO] Pfizer Animal Health
Investing to Succeed
Companion Animal Products and Vaccines
- --------------------------------------------------------------------------------
[Pfizer LOGO] Revolution (selamectin)
<TABLE>
<CAPTION>
Differentiation from the Competition
[Revolution Logo] [Advantage Logo] [Frontline Logo]
<S> <C> <C> <C>
Fleas X X X
Ticks X - X
Heartworm X - -
> $100 MM Orders in First 3 Months
</TABLE>
- --------------------------------------------------------------------------------
[Pfizer LOGO] Investing for Leadership
Extending Worldwide R&D Capacity
Increasing Laboratory Space by 550,000 Sq. Ft.
- --------------------------------------------------------------------------------
<PAGE> 27
- ------------------------------------------------------------------------------
[Pfizer - 150 LOGO]
Pharmaceutical Products
R&D Pipeline
November 1999
George M. Milne, Jr.
- --------------------------------------------------------------------------------
<PAGE> 28
- --------------------------------------------------------------------------------
[Pfizer LOGO] Pfizer R&D Portfolio
Breadth and Depth to Sustain Leadership
Pie chart showing the percentages of R&D dedicated to the 15 therapeutic areas:
Allergy/Resp.
Anti-Infectious
Atherosclerosis
Cancer
Cardiovascular
Diabetes
Immunology
Inflammation
Neurodegeneration
Obesity
Osteoporosis
Pain
Psychotherapeutics
Tissue Repair
Urogenitals
- - 61 NCEs
- - 15 Therapeutic Areas
- --------------------------------------------------------------------------------
[Pfizer LOGO] Emerging Pipeline
Lasofoxifene
SERM
CP-358,774
EGFR TK Inhibitor
- 61 NCEs - 49 Early Stage CP-101,606
Candidates NMDA Antagonist
- 15 Therapeutic - 6 Late Stage CP-368,296
Areas Candidates Glycogen Phosphorylase
Inhibitor
CJ-13,610
5LO Inhibitor
UK-357,903
PDE5 Inhibitor
- -------------------------------------------------------------------------------
[Pfizer LOGO] Lasofoxifene (CP-336,156)
SERM for Post Menopausal Conditions
Update
- - Lasofoxifene Advancing to Full Development
- - In Phase II
- --------------------------------------------------------------------------------
[Pfizer LOGO] Lasofoxifene
Increases Bone Mineral Density
[Bar chart depicting Lasofoxifene 4 mg/d propensity to increase bone mineral
density versus placebo]
- --------------------------------------------------------------------------------
[Pfizer LOGO] Lasofoxifene
Lowers Serum LDL Cholesterol
[Bar chart indicating change from baseline serum LDL cholesterol in excess
of 15% after 6 months and approximately 20% after 12 months when using
Lasofoxifene .4 mg/d]
- --------------------------------------------------------------------------------
<PAGE> 29
- --------------------------------------------------------------------------------
[Pfizer LOGO] Lasofoxifene
Lumbar Spine BMD -- Comparative Data
[Bar chart depicting Lasofoxifene .25 mg/d propensity to improve Lumbar Spine
BMD versus Raloxifene 60 mg/d and placebo]
- -------------------------------------------------------------------------------
[Pfizer LOGO] Lasofoxifene
LDL Cholesterol -- Comparative Data
[Bar chart depicting Lasofoxifene .25 mg/d propensity to decrease LDL
Cholesterol versus Raloxifene 60 mg/d and placebo. Reflecting for the placebo a
10% change from baseline, for Lasofoxifene a 25% change from baseline and
approximately a 17% change from baseline for Raloxifene]
- --------------------------------------------------------------------------------
[Pfizer LOGO] Lasofoxifene
Inhibits Human Breast Cancer in MCF7 Mice
[Bar chart depicting Lasofoxifene inhibiting Human Breast Cancer tumor growth in
MCF7 Mice]
- --------------------------------------------------------------------------------
[Pfizer LOGO] Lasofoxifene
Summary
- - Excellent Comparative Efficacy
- - Acute and Chronic Animal Toxicology Complete
- - Full Development Schedule to Start Early Next Year
- --------------------------------------------------------------------------------
[Pfizer LOGO] Frailty
Age-Related Changes in Body Mass
Compromised Ability to Perform Daily Tasks
[Graphical depiction of age-related changes in Body Mass. Fat increases with
age while bone and muscle decrease with age]
- --------------------------------------------------------------------------------
[Pfizer LOGO] CP-424,391
Frailty
Therapeutic Role for Growth Hormone
- - Oral Growth Growth Hormone
Hormone Secretagogue |
IGF-I
- - Well Tolerated |
Bone and Muscle
- - Six and Twelve Month
Toxicology Complete
- - In Phase II
- --------------------------------------------------------------------------------
<PAGE> 30
- --------------------------------------------------------------------------------
[Pfizer LOGO] CP-424,391
Increases Edogenous Growth Hormone
[Graphical depiction of CP-424,391's propensity to increase Endogenous Growth
Hormone in both 10mg and 3mg dosages versus Control group]
- --------------------------------------------------------------------------------
[Pfizer LOGO] CP-358,774
CANCER
- - Selective EGFR Inhibitor
- - Phase II Cancer Trials Ongoing or Planned for:
- Ovarian
- Head/Neck
- Non-Small Cell Lung Cancer
- Oral and Parenteral Formulas
- Potential for Accelerated Growth
- --------------------------------------------------------------------------------
[Pfizer LOGO] Pfizer R&D Portfolio
Breadth and Depth to Sustain Leadership
[Pie chart emphasizing cancer in relation to the following:
- - 2 Phase II Candidates
- CP-358,774
- Celebrex
- - 1 Phase I Candidate
- CP-471,358
- - 5 Preclinical Candidates
- CP-663,427
- CP-609,754
- CP-547,632
- CP-642,570
- CP-599,069
- - 6 Different Mechanisms of Action]
- --------------------------------------------------------------------------------
[Pfizer LOGO] CP-101,606
Treats Traumatic Brain Injury (TBI)
- - Selectively Binds NR2B Subunit of NMDA Receptor
- - Superior Safety and Toleration
- - Early Evidence of Efficacy
- - Partial Phase II Trial Should Complete in 2000
- - Potential for Accelerated Development
- --------------------------------------------------------------------------------
[Pfizer LOGO] CP-101,606
Preliminary Results
Glasgow Outcomes Scores in Severe Head Injury
[Bar chart illustrating performance of MCV Controls, C8-101,606 (2hr Infusions)
and CP 101,606 (24-72 hr Infusions)]
- --------------------------------------------------------------------------------
<PAGE> 31
- --------------------------------------------------------------------------------
[Pfizer LOGO] UK-279,276
Neutrophil Inhibitory Factor (NIF)
- - NIF - A Biological Produced by the Canine Hookworm (Cervas)
- - Prevents Neutrophil Induced Brain Damage in Animals
- - In Phase IIA for Stroke
- - Pivotal Efficacy Trials in 2000
- - Potential for Accelerated Development
- --------------------------------------------------------------------------------
[Pfizer LOGO] UK-279,276 (NIF)
CD11b Inhibition
[Line chart illustrating performance of UK-279,276 as compared to placebo]
- --------------------------------------------------------------------------------
[Pfizer LOGO] Pfizer R&D Portfolio
Breadth and Depth to Sustain Leadership
[Pie chart emphasizing CNS in relation to the following:]
- 5 Phase II
- CP-101,606
- UK-279,276
- CP-361,428
- CP-122,721
- CP-448,187
- 5 Phase I
- CP-457,920
- 7 Preclinical
- 10 Mechanisms of Action
- ---------------------------------------------------------------------
[Pfizer LOGO] CP-368,296
Oral Antidiabetic Agent
- A New Mechanistic Class
- Glycogen Phosphorylare Inhibitor
- Effectively Lower Blood Glucose
- Reduce Risk of Hypoglycemia
- -------------------------------------------------------------------------------
[Pfizer LOGO] CP-368,296
Efficacy
Change in Fasting Morning Glucose After 2 Weeks (Type 2 Diabetics)
[BAR CHART ILLUSTRATING DECREASE IN LEVEL OF GLUCOSE BASED ON INCREASING DOSES
OF CP-368,296 AFTER 2 WEEKS (TYPE 2 DIABETICS)]
- --------------------------------------------------------------------------------
<PAGE> 32
- --------------------------------------------------------------------------------
[Pfizer LOGO] CJ 13,610
5-LO Inhibitor for Asthma
- - Target Profile
- Efficacy of Steroids and Superior Safety
- Once a Day
- Treatment of Adults & Children
- Oral
- - In Phase II
- - Fast Track Development
- --------------------------------------------------------------------------------
[Pfizer LOGO] CJ - 13,610
Preliminary Efficacy Confirmed
[Chart depicting % change in FEV1/FVC over time comparing CJ - 13,610 to a
placebo]
- --------------------------------------------------------------------------------
[Pfizer LOGO] UK-357,903
PDES-Inhibitor for MED
- - Potent and selective
- - Well Tolerated at Significant Multiples
- - Advanced Clinical Trials Scheduled for 2000
- - Fast Track Development
- --------------------------------------------------------------------------------
[Pfizer LOGO] UK-357,903
Potent and Selective
[Bar Chart indicating potency and selectivity of UK-357,903]
- --------------------------------------------------------------------------------
[Pfizer LOGO] UK-357,903
Efficacy
[Bar Chart of duration of Erections (with more than 60% Regidity)]
placebo -- 5 minutes
UK - 357,903 - 50mg 30 minutes
UK - 357,903 - 100mg 55 minutes
- --------------------------------------------------------------------------------
<PAGE> 33
- --------------------------------------------------------------------------
[Pfizer LOGO] Agenda
- - Welcome
- - William C. Steer, Jr., Chairman and CEO
- - Financial Performance
- - David L. Shedlarz, Executive VP and CFO
- - Pharmaceutical Operations
- - Karen L. Katen, Senior VP and President -- US Pharmaceuticals
- - Research and Development
- - John F. Niblack, Vice Chairman
- - George M. Milne, Jr., Senior VP and President -- Central Research
- - Strategic Goals and Positioning
- - HENRY A. MCKINNEL, PH.D., PRESIDENT AND COO
- - William C. Steere, Jr., Chairman and CEO
- -------------------------------------------------------------------------------
[Pfizer LOGO] A Combination From Strength
[Pfizer LOGO] An Unbeatable Platform for Growth
[Warner-Lambert LOGO]
- --------------------------------------------------------------------------------
[Pfizer LOGO] Summary
- - $28 Billion Combined Revenues
- - $4 Billion Combined R&D Spending
- - $1.2 Billion Plus in Cost Savings
- - Significant Sales Synergies
- --------------------------------------------------------------------------------
[Pfizer LOGO] Summary
- - Tax-free Stock-for-stock Exchange
- - 2.5 Pfizer Shares for Each Warner-Lambert Share
- - 30% Premium Over Last Month's Average Closing Price
- - Subject to
- Elimination of Breakup fees
- Ability to Use Pooling-of-interests Accounting
- --------------------------------------------------------------------------------
<PAGE> 34
- --------------------------------------------------------------------------------
[Pfizer LOGO] Long-Term Prospects for Strong Performance
1999-2002 Forecast -- Pfizer Inc.
($ Billions, Except Per Share Data)
<TABLE>
<CAPTION>
CAGR
2000 2001 2002 '99-'02
<S> <C> <C> <C> <C>
Total Revenues ........... $18.8 $21.8 $25.2 16%
Net Income ............... $ 4.0 $ 4.8 $ 5.7 20%
Diluted EPS .............. $1.02 $1.22 $1.47 20%
</TABLE>
- --------------------------------------------------------------------------------
[Pfizer LOGO] Pfizer Warner - Lambert Combination
Unbeatable Platform: Earnings Growth
($ Billions, Except Per Share Data)
<TABLE>
<CAPTION>
CAGR
2000 2001 2002 '99-'02
<S> <C> <C> <C> <C>
Revenues $31.1 $35.1 $39.5 13%
Net Income $6.4 $7.8 $9.4 24%
EPS $1.04 $1.26 $1.53 24%
</TABLE>
COST SYNERGIES OF $1.2 OVER 3 YEARS
- --------------------------------------------------------------------------------
[Pfizer LOGO] Unbeatable Platform: Pharm Sales
<TABLE>
<CAPTION>
COMPANY 1999E WORLDWIDE PHARMA SALES
- ------- ----------------------------
($ Billions)
<S> <C>
PRO FORMA PFIZER 20.8
Merck 16.3
AstraZeneca 14.6
Glaxo Wellcome 13.9
Bristol-Myers Squibb 13.4
PFIZER 13.0
Aventis 12.2
Johnson & Johnson 10.3
Roche 10.3
Novartis 9.8
Eli Lilly 9.6
American Home Products 9.6
SmithKline Beecham 8.3
WARNER-LAMBERT 7.8
Schering-Plough 7.8
</TABLE>
Source: Analysts' Consensus
- --------------------------------------------------------------------------------
<PAGE> 35
- --------------------------------------------------------------------------------
[Pfizer LOGO] Unbeatable Platform: R&D
<TABLE>
<CAPTION>
COMPANY 1999E TOTAL R&D SPENDING
- ------- ------------------------
($ Billions)
<S> <C>
PRO FORMA PFIZER 4.0
Aventis 2.9
PFIZER 2.8
AstraZeneca 2.8
Johnson & Johnson 2.5
Novartis 2.5
Roche 2.3
Merck 2.1
Glaxo Wellcome 2.0
Bristol-Myers Squibb 1.8
Eli Lilly 1.8
American Home Products 1.7
SmithKline Beecham 1.6
Pharmacia & Upjohn 1.3
Schering-Plough 1.2
WARNER-LAMBERT 1.2
</TABLE>
Source: Analysts' Consensus
- --------------------------------------------------------------------------------
[Pfizer LOGO] Unbeatable Platform: Portfolio Breadth/Depth
($ Billions)
Sales 1999E
[Bar Chart Depicting % of sales from each therapeutic category for Pfizer,
Warner-Lambert and on a pro forma combined Pfizer/Warner-Lambert basis]
<TABLE>
<S> <C> <C>
$13.0* $7.8 $20.8
Pfizer Warner-Lambert Pro Forma Pfizer
</TABLE>
Source: Analysts' Consensus
* Excludes Lipitor Alliance Revenue
- --------------------------------------------------------------------------------
[Pfizer LOGO] Unbeatable Platform: Major Products ($ Billions)
Sales 1999E
<TABLE>
<CAPTION>
Products with Sales >$1B Products with Sales $500M-$1B
- ------------------------ -----------------------------
<S> <C> <C> <C>
Liptor $3.7 Neurontin 0.8
Norvasc $3.1 Cardura 0.8
Zoloft $2.1 Rezulin 0.6
Celebrex $1.4 Viarcept 0.6
Zithromax $1.3 Aricept 0.5
Viagra $1.0 Procordia XL 0.5
Diflucan $1.0 Zyrtec 0.5
Accupril 0.5
</TABLE>
- ---------------------
Pfizer
Warner-Lambert
- ---------------------
Source: Analysts' Consensus
- --------------------------------------------------------------------------------
<PAGE> 36
- --------------------------------------------------------------------------------
[Pfizer LOGO] Unbeatable Platform: Major Products
# of Products > Growth >
Company $500MM Sales 1999E Than 10% in 1999
------- ------------------ ----------------
PRO FORMA PFIZER 15 12
PFIZER 10 9
Glaxo Wellcome 10 5
Merck 9 4
Bristol-Myers Squibb 8 5
AstraZeneca 7 5
Novartis 6 3
WARNER-LAMBERT 5 3
Johnson & Johnson 5 1
Aventis 4 3
SmithKline Beecham 4 0
Schering-Plough 3 3
Eli Lilly 3 2
Roche 3 2
American Home Products 3 1
- --------------------------------------------------------------------------------
[Pfizer LOGO] Unbeatable Platform: Therapeutic Categories
Current Portfolio In Development
----------------- --------------
Cardiovascular Norvasc Avasimible
Cardura Enadoline
Accupril Accupril -- New Indications
Procardia XL Norvasc -- New Indications
VEGF -- 121
Cholesterol Lowering Lipitor Norvasc -- Lipitor Combo
Lopid
CNS Zoloft Relpax CP-101,606
Aricept Zeldox PD-143,188
Nearontin Igmesine UK-279,276
Dilantin Milameline
Pregabalin
- --------------------------------------------------------------------------------
[Pfizer LOGO] Unbeatable Platform: Therapeutic Categories
<TABLE>
<CAPTION>
Current Portfolio Pipeline
----------------- --------
<S> <C> <C>
Women's Health Diflucan FemHRT
FemPatch Darifenacin
Estrostep Lasofoxifene
Loestrin CI-1001
Pyridium Viagra
Camprecin
HIV Diflucan Remune
Viracept VFend
Zithromax - MAC
AG - 1549
AG - 1029
AG - 7088
</TABLE>
- --------------------------------------------------------------------------------
<PAGE> 37
- --------------------------------------------------------------------------------
[Pfizer LOGO] Unbeatable Platform: Therapeutic Categories
<TABLE>
<CAPTION>
Current Portfolio In Development
----------------- --------------
<S> <C> <C>
Diabetes Glucotrol XL Zenarestat
Rezulin Inhaled insulin
CP-368,296
Oncology Nipent Prinomostat (MMPI)
Losoxontrone
Celebrex - FAP
CI - 994
CP - 358,774
CI - 980
CI - 994
Pfizer
Warner-Lambert
</TABLE>
- -------------------------------------------------------------------------------
[Pfizer LOGO] Major Presence in OTC Market
- - Combined 1999E Sales: $5.5 Billion
- - Platform for Rx-to-OTC Switches for Both Product Portfolio
[Pfizer LOGO] [Warner-Lambert LOGO]
[Pfizer Products] [Warner-Lambert Products]
- --------------------------------------------------------------------------------
[Pfizer LOGO] Superior Cost Savings
Sources of Cost Savings
Manufacturing/ - Leverage Rationalized/Modernized Manufacturing
Distribution and Distribution Operations
G&A - Common Administrative Organizations in 30 Countries
Purchasing - Approximately $10 Billion in Combined Purchased Items
- --------------------------------------------------------------------------------
[Pfizer LOGO] Significant Synergies
Sources of Synergies
Sales & - Integration and Enhanced Field Force
Marketing Productivity
Research & Development - Depth, Breadth, and Scope of Therapeutic
Areas/Leverage Technologies
- --------------------------------------------------------------------------------
<PAGE> 38
- --------------------------------------------------------------------------------
[Pfizer LOGO] Sales & Marketing Synergies
- Leverage Lipitor Worldwide
- Capitalize on Lipitor-Norvasc Combination Product
- Cholesterol-lowering
- Hypertension
- Exploit Pfizer's Strength in Japan and France
- Share Best Practices
- Sales
- Marketing
- --------------------------------------------------------------------------------
[Pfizer LOGO] Enhanced Growth/Shareholder Value
- - Fastest Growing Company in the Industry
- 13% Annual Revenue Growth
- 24% Annual Earnings Growth
- - Sales and Marketing
- Unparalleled Marketing Power and Reach
- Sharing Best Practices
- - Research & Development
- $4 Billion R&D Spending
- Common Commitment to Innovation
- Combined Skills and Expertise
- Scale of Cutting-edge Technologies
- Broad Biotechnology Network
- - Culture
- Most Successful Partnership in the World
- Share Common Values
- --------------------------------------------------------------------------------
[Pfizer LOGO] Relative Financial Strength
Estimated Financial Returns
<TABLE>
<CAPTION>
Warner- Pro Forma
Pfizer Lambert Pfizer
<S> <C> <C> <C>
Return on 35% 40% 43%
Equity
Return on 24% 25% 29%
Assets
EPS Growth 20% 19% 24%
('99-'02)
</TABLE>
Assumes Pre-Tax Synergies of $1.2 Billion
- --------------------------------------------------------------------------------
<PAGE> 39
- --------------------------------------------------------------------------------
[Pfizer LOGO]
Relative Financial Strength
Estimated Financial Returns
<TABLE>
<CAPTION>
American Home
Warner-Lambert American Home Warner-Lambert
<S> <C> <C> <C>
Return on Equity 40% 24% 34%
Return on Assets 25% 15% 21%
EPS Growth 19% 14% 20%
('99-'02)
</TABLE>
Assumes Pre-tax Synergies of $1.2 Billion
- --------------------------------------------------------------------------------
[Pfizer LOGO] Relative Financial Strength
Estimated Financial Returns
<TABLE>
<CAPTION>
American Home
Pro Forma Pfizer Warner-Lambert
---------------- --------------
<C> <C>
Return on Equity 43% 34%
Return on Assets 29% 21%
EPS Growth ('99-'02) 24% 20%
</TABLE>
- --------------------------------------------------------------------------------
[Pfizer LOGO] Lipitor Agreement
Warner-Lambert Option Quid
- - 10-year Agreements From Dates of Launch
- - Option to Modify After 5 Years
- Pfizer Sales, Medical, Marketing Involvement Ends
- Pfizer Receives 75% of Contract Income
- Risk is Lower Actual Sales Realized
- - No Absolute Rights to a Quid
- Rights to Three Negotiations to Mutual Satisfaction
- $30 Million Payment in 200X if No Agreement is Reached
- Only Relpax Offered for Negotiation
- --------------------------------------------------------------------------------
