<PAGE>
SCHEDULE 14A INFORMATION
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SHIRE PHARMACEUTICALS GROUP PLC
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<PAGE>
BIOCHEM PHARMA SHIRE
[LOGO] [LOGO]
San Francisco
Chase H&Q Conference
January 2001
--------------------------------------------------------------------------------
PROPOSED MERGER
--------------------------------------------------------------------------------
<PAGE>
COMMENT ON "FORWARD-LOOKING STATEMENTS"
The statements made during today's presentation, or in response to questions
during the Question & Answer period, that are not historical facts, are
forward-looking statements that involve risks and uncertainties, including
but not limited to, risks associated with the inherent uncertainty of
pharmaceutical research, product development and commercialisation, the
impact of competitive products, patents, and other risks and uncertainties,
including those detailed from time to time in periodic reports including the
Annual Report filed on Form 10K by Shire with the Securities and Exchange
Commission.
<PAGE>
SECTION 57 FINANCIAL SERVICES ACT
THIS PRESENTATION DOES NOT CONSTITUTE AN OFFER TO SELL OR ISSUE, OR A
SOLICITATION OF ANY OFFER TO PURCHASE OR SUBSCRIBE FOR, ANY ORDINARY SHARES
IN THE COMPANY, NOR SHALL IT FORM THE BASIS OF, OR BE RELIED UPON IN
CONNECTION WITH, ANY CONTRACT FOR SUCH PURCHASE OR SUBSCRIPTION. NO
REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, IS MADE OR GIVEN BY THE
COMPANY AS TO THE ACCURACY OR COMPLETENESS OF THE INFORMATION OR THE OPINIONS
CONTAINED IN THIS PRESENTATION AND NO LIABILITY IS ACCEPTED FOR ANY SUCH
INFORMATION OR OPINIONS.
THIS DOCUMENT HAS BEEN ISSUED BY, AND IS THE SOLE RESPONSIBILITY OF, SHIRE
PHARMACEUTICALS GROUP PLC. THIS DOCUMENT HAS BEEN APPROVED BY DEUTSCHE BANK
AG LONDON ("DEUTSCHE BANK") SOLELY FOR THE PURPOSES OF SECTION 57 OF THE UK
FINANCIAL SERVICES ACT 1986.
DEUTSCHE BANK, WHICH IS REGULATED IN THE UNITED KINGDOM BY THE SECURITIES AND
FUTURES AUTHORITY LIMITED, IS ACTING FOR SHIRE AND NO ONE ELSE IN CONNECTION
WITH THE MERGER AND WILL NOT BE RESPONSIBLE TO ANYONE OTHER THAN SHIRE FOR
PROVIDING THE PROTECTIONS AFFORDED TO CUSTOMERS OF DEUTSCHE BANK NOR FOR
PROVIDING ADVICE IN RELATION TO THE MERGER. PERSONS VIEWING THIS DOCUMENT ARE
DIRECTED TO THE SHIRE PRESS ANNOUNCEMENT DATED 11 DECEMBER 2000, WHICH
CONTAINS ADDITIONAL DETAILS AND INFORMATION RELATING TO THE MERGER.
<PAGE>
THE MERGER DESCRIBED IN THIS PRESENTATION AND IN THE PRESS RELEASE DATED 11
DECEMBER 2000 (THE "PRESS RELEASE"), IN WHICH BIOCHEM SHAREHOLDERS WOULD
RECEIVE CONSIDERATION SHARES, REQUIRES THE SHAREHOLDER APPROVAL OF SHIRE AND
BIOCHEM AND THE SOLICITATION OF SUCH APPROVAL HAS NOT YET COMMENCED.
IN CONNECTION WITH THE MERGER, SHIRE WILL FILE A PROXY STATEMENT WITH THE US
SECURITIES AND EXCHANGE COMMISSION ("SEC"). OTHER MATERIALS RELATING TO THE
MERGER WILL ALSO BE FILED WITH THE SEC. INVESTORS ARE URGED TO READ THE PROXY
STATEMENT AND OTHER RELEVANT DOCUMENTS TO BE FILED WITH THE SEC BECAUSE THEY
WILL INCLUDE IMPORTANT INFORMATION.
UNLESS SHIRE OTHERWISE DETERMINES, THE PROXY STATEMENT WILL NOT BE SENT,
DIRECTLY OR INDIRECTLY, IN OR INTO, OR BY THE USE OF THE MAILS OR ANY MEANS
OR INSTRUMENTALITY (INCLUDING WITHOUT LIMITATION, TELEPHONICALLY OR
ELECTRONICALLY) OF INTERSTATE OR FOREIGN COMMERCE, OR FACILITIES OF A
NATIONAL, STATE OR OTHER SECURITIES EXCHANGE OF AUSTRALIA OR JAPAN AND
INVESTORS IN AUSTRALIA OR JAPAN WILL NOT BE CAPABLE OF VOTING WITH RESPECT TO
APPROVING THE MERGER BY ANY SUCH USE, MEANS, INSTRUMENTALITY OR FACILITY AND
THIS ANNOUNCEMENT MAY NOT BE DISTRIBUTED IN ANY SUCH JURISDICTIONS.
TERMS USED IN THIS PRESENTATION SHALL HAVE THE SAME MEANING AS THOSE
DEFINITIONS IN THE "PRESS RELEASE".
<PAGE>
BIOCHEM PHARMA SHIRE
[LOGO] [LOGO]
....a merger of two of the most profitable,
fast growing, publicly traded,
specialty pharmaceutical
companies...
<PAGE>
KEY MESSAGES:
- Similar strategies
- Track record of high profitability
- Above industry growth(1)
- More products and projects
(1) based on pro forma 1999 combined company revenue
<PAGE>
COMBINED COMPANY STRATEGY
Business Innovation, specialty pharma
Function Search & development plus
marketing
Geography Direct marketing in 7 of the 8
key markets
Major Therapeutic CNS, Oncology, Antivirals,
Areas Vaccines
<PAGE>
THERAPEUTIC AREA STRATEGY
- CNS
- ADHD (SHIRE)
- REMINYL-TM- (JANSSEN*)
- EPILEPSY (SHIRE)
- DIRAME-TM- (PAIN; SHIRE +)
- FRAKEFAMIDE (PAIN: ASTRAZENECA)
- ONCOLOGY/HAEMATOLOGY
- AGRYLIN-TM-(SHIRE)
- FARESTON-TM- (SHIRE)
- PACIS-TM- (UROCOR)
- SECOND LOOK-TM- (DISTRIBUTORS)
- TROXATYL-TM- (SHIRE)
- ANTIVIRALS (GLAXOSMITHKLINE)
- VACCINES (SHIRE; LONG-TERM)
*UK&Ireland by Shire with co promotion from Janssen Cilag
<PAGE>
THERAPEUTIC AREA STRATEGY (CONT.)
VACCINES
- Cell-culture influenza (Phase I)
- Neisseria meningitidis (Phase I)
- Pseudomonas aeruginosa (Pre-clinical)
- Recombinant vaccine manufacturing
<PAGE>
ENHANCED R&D CAPABILITY
COMPLEMENTARY SKILLS
SHIRE STRENGTHS
LEAD OPTIMISATION / PRECLINICAL / CLINICAL REGULATORY / MARKETING
BIOCHEM STRENGTHS
IN COMPLEMENTARY THERAPEUTIC AREAS
<PAGE>
FINANCIAL DIMENSIONS
1999 PRO FORMA COMBINED
ADJUSTED FOR CLINICHEM(5)
- US$ 538m revenues(1) (2)
- US$ 114.3m operating income(1) (3)
- Operating margin: 21%(3)
- US$ 138m R&D (26% of revenues)(1)
- US$ 8.5bn market capitalisation(4)
(1)Source: Shire and BioChem Pharma management. Based on an average exchange
rate over the period of C$1.49 per US$
(2)Excludes CliniChem revenue recharge of US$49.3m
(3)Pre APB25 charge
(4)As at December 8th 2000 on a fully diluted basis
(5)Figures shown as if CliniChem did not exist
<PAGE>
FINANCIAL RATIOS
(BEFORE EXCEPTIONAL CHARGES AND APB 25)
<TABLE>
<CAPTION>
SHIRE BIOCHEM(1) COMBINED(1) COMBINED(1)
FY99% FY99% FY99% 9MTHS%
<S> <C> <C> <C> <C>
COGS : REVENUES 23 7 19 16
GROSS MARGIN: REVENUES 77 93 81 84
R&D : REVENUES 19 44 26 25
S,G&A (INCL D&A) :
REVENUES 40 17 34 32
S,G&A (EXCL D&A) :
PRODUCT SALES 34 112 37 34
OPERATING MARGIN 18 32 21 28
</TABLE>
(1) excludes CliniChem revenues
<PAGE>
KEY DRIVERS OF REVENUE GROWTH(1)
2001 - 2003
Adderall-TM-/SLI 381(2) Zeffix-TM-(3)
3TC-TM-/Combivir-TM-/Trizivir-TM-(3) Second Look-TM- (CADx)
Agrylin-TM- Reminyl-TM-(2)
Carbatrol-TM Foznol-TM-(Lambda)(2)
(1)Ranked by LTM sales
(2)Subject to relevant regulatory approvals
(3)3TC, Combivir, Trizivir and Zeffix are trademarks of GlaxoSmithKline
<PAGE>
3TC FRANCHISE: EPIVIR/COMBIVIR/TRIZIVIR(1)
- Foundation for HIV/AIDS therapy - primary component of many
combination therapies
- US$125.5 million LTM revenues(2)
- Double digit royalties from GlaxoSmithKline
- Introduction of a once-a-day dosage and encouraging data on
resistance profile could sustain future growth
- Patent protection through 2010(3)
(1)3TC, Epivir, Combivir and Trizivir are trademarks of
GlaxoSmithKline
(2)Royalty income and Canadian product sales, LTM ending
30. Sept. 2000
(3)Further protection expected on combinations until 2018
<PAGE>
ZEFFIX-TM-
- Only approved oral treatment for Hepatitis B
- Key markets PacRim, Italy and Spain
- US$10.9 million LTM revenues(1)
- Double digit royalties from GlaxoSmithKline
- Launched in Japan November 2000
- A key growth driver for combined group
- Patent protection through 2013
(1)Royalty income and Canadian product sales
<PAGE>
QUARTERLY ZEFFIX-TM- SALES*
[CHART]
US$ MILLIONS
Q1 99 0.8
Q2 99 2.2
Q3 99 7.9
Q4 99 13.3
Q1 00 20.0
Q2 00 25.0
Q3 00 28.1
* Sales of GlaxoWellcome
<PAGE>
PAC RIM POPULATIONS
<TABLE>
<CAPTION>
Country Population Size, GDP/PPP
m per capita (US$)
<S> <C> <C>
South Korea 47.5 12,600
China (PRC) 1,261.8 3,600
Taiwan 22.2 16,500
Hong Kong 7.1 N/A
Singapore 4.2 26,300
Japan 126.6 23,100
</TABLE>
Definitions: Gross domestic product (GDP): The value of all goods and
services produced domestically. Purchasing power parity (PPP): The PPP method
involves the use of standardized international dollar price weights, which are
applied to the GDP produced in a given economy. The data derived from the
1998 method provide a better comparision of economic well-being between
countries than conversions at official currency exchanging rates.
Source: US Census Bureau, International Database 1999
<PAGE>
HEPATITIS B JAPAN
<TABLE>
<S> <C>
Population 126.6 m
Chronic Hepatitis B % 2% of population
Population affected 2.5 m
Chronic active 30%
Treatable patients 0.75 m
</TABLE>
Source: WHO 1999
<PAGE>
COMBINED LTM PRODUCT SALES AND ROYALTIES
[CHART]
Others 14%
Fluviral 1%
Zeffix(1) 2%
Calciums 3%
ProAmatine 3%
Carbatrol 4%
Pentasa 8%
Agrylin 8%
3TC(1) 21%
Adderall 33%
COMBINED TOTAL: US$611M
(1)Royalty income stream from GlaxoWellcome sales and Canadian product sales;
Trademarks of GlaxoWellcome.
Under agreement, BioChem receives royalties from GlaxoWellcome on sales of
Iamivudine in the treatment of HIV/AIDS (3TC/Epivir/Combivir/Trizivir) and
HBV (Zeffix/Zefix/Epivir-HBV/Heptovir/Heptodin)
Source: Shire and BioChem management for LTM ending 30/9/00. Based on an
average exchange rate over the period of C$1.47 per US$
<PAGE>
GEOGRAPHIC PRODUCT RIGHTS
<TABLE>
<CAPTION>
US Canada Europe Japan
<S> <C> <C> <C> <C>
Epivir/Combivir/Trizivir-TMS- X(1)
Adderall/DextroStat-TMS- X /X/ /X/ /X/
Agrylin-TM- X
Pentasa-TM- X
Carbatrol-TM- X /X/ /X/ /X/
Zeffix-TM- X(1)
ProAmatine-TM- X X /X/(2)
Reminyl-TM- X(2)
Second Look-TM- /X/ X X /X/
X = ALREADY MARKETED /X/ = RIGHTS OWNED, FUTURE POTENTIAL MARKET
(1) JOINT VENTURE WITH GLAXOSMITHKLINE (2) UK / IRELAND ONLY
</TABLE>
<PAGE>
DEVELOPMENT PIPELINE
<TABLE>
<CAPTION>
THEARAPEUTIC AREA PC/PHASE I PHASE II PHASE III/REG TOTAL
<S> <C> <C> <C> <C>
CNS 6 1 4 11
ANTIVIRAL 2 0 0 2
ONCOLOGY 1 1 2 4
VACCINES 3 0 0 3
METABOLYC / GI 0 3 1 4
TOTAL 12 5 7 24
</TABLE>
12 EARLY STAGE PROJECTS, 12 LATE STAGE
<PAGE>
[Bar Chart]
PHASE II AND BEYOND PIPELINE
<TABLE>
<CAPTION>
PRODUCT INDICATION PHASE II PHASE III REGISTRATION MARKETED
<S> <C> <C> <C> <C>
CENTRAL NERVOUS SYSTEM
REMINYL (GALANTAMINE) ALZHEIMER'S DISEASE --------------------------------------------------------------X
ADDERALL LA-TM- (SLI 381) ADHD --------------------------------------------X
DIRAME MODERATE TO SEVERE PAIN ----------------------------X
FRAKEFAMIDE MODERATE TO SEVERE PAIN(1) --------------X
SPD 417 BIPOLAR DISORDER ----------------------------X
ONCOLOGY / HAEMATOLOGY
AGRYLIN THROMBOCYTHEMIA --------------------------------------------------------------X
TROXATYL LEUKEMIA --------------X
SPD 424 PROSTATE CANCER ----------------------------X
METABOLIC DISEASE
FOZNOL (LAMBDA) HYPERPHOSPHATEMIA ----------------------------X
GASTROENTEROLOGY
BALSALAZIDE ULCERATIVE COLITIS --------------------------------------------------------------X
EMITASOL DIABETIC GASTROPARESIS ----------------------------X
PENTASA 500MG ULCERATIVE COLITIS ----------------------------X
</TABLE>
(1)Frakefamide acts peripherally
<PAGE>
CNS (ALZHEIMER'S DISEASE)
- Reminyl(-TM-)(galantamine)
- Novel dual mode of action
- acetylcholinesterase inhibitor
- nicotinic modulator
- First European launch (UK) 21 Sept 2000
- further EU launches planned
- FDA approvable letter Aug 2000
- launch planned H1 2001(1)
- Japan submission expected 2003
- Co-development and licensing agreement with Janssen
(1)Subject to final approval
<PAGE>
CNS (ADHD)
- Adderall-TM- new line extensions
- Launched in December 2000
- Allows increased dosing flexibility
- Adderall LA-TM- (SLI 381)
- Novel, once a day formulation of Adderall-TM-
- First results presented in Oct 2000
- NDA submitted early - 3 Oct 2000
- Anticipated launch in Q4 2001(1)
(1)Subject to regulatory approval
<PAGE>
CNS (PAIN CONTROL)
- Dirame-TM-
- Oral centrally acting analgesic for moderate to severe pain
- Opiate partial agonist and antagonistic activity
- Phase III - US for chronic pain, additional work planned
- Global rights owned by Shire
- Anticipated launch by 2003(1)
- Frakefamide
- Intravenous, peripherally acting opiate analgesic for moderate
to severe pain
- Phase II for acute pain
- Designed to avoid centrally mediated opioid side effects
- Partnered with AstraZeneca for all regions, except Canada
(1)Subject to regulatory approval
<PAGE>
ONCOLOGY (HAEMATOLOGY)
- Agrylin-TM- (anagrelide)
- For elevated platelet count (eg Essential thrombocythemia)
- Platelet specific
- Marketed in US and Canada by Shire
- Planning registration in Europe, in Phase I in Japan
- Orphan drug status approved in EU January 2001
- Already approved in US and Japan
- Shire owns worldwide rights
<PAGE>
SECOND LOOK-TM-
- Diagnosis support for Breast Cancer
- Hard & Software (artificial intelligence)
- Selling price for BioChem: approx. $100,000
- 2000 sales: 10 systems
- US number of diagnostic centres: 10,000*
*source: Frost & Sullivan, 20/9/99
<PAGE>
ONCOLOGY
- Troxatyl-TM- (troxacitabine)
- DNA polymerase inhibitor
- Phase II development for leukemia (AML, CML-BP)
- 73% of AML patients demonstrated a reduction in leukemia cells in a
Phase IIa trial
- Further Phase II monotherapy trials and Phase I/II combination trials
are ongoing
- Worldwide commercialisation rights owned
<PAGE>
FOZNOL-TM- (LAMBDA)
- Phosphate binder for patients in end-stage renal failure
- Major clinical need for non-calcium, non-aluminium based therapies
- Europe
- completing Phase III, filing Q1 2001
- US
- end 2001 filing anticipated
- Global rights owned
- development underway in Japan (end Phase I)
<PAGE>
GEOGRAPHIC DEVELOPMENT PROJECT RIGHTS
<TABLE>
<CAPTION>
US CANADA EUROPE JAPAN
<S> <C> <C> <C> <C>
REMINYL-TM- X X X(1) X
DIRAME-TM- /X/ /X/ /X/ /X/
ADDERALL LA-TM- (SLI 381) /X/ /X/ /X/ /X/
FRAKEFAMIDE X /X/ X X
CARBATROL-TM- (INCL BIPOLAR) /X/ /X/ /X/ /X/
SPD 421 /X/ /X/ /X/ /X/
AGRYLIN-TM- /X/ /X/ /X/ /X/
TROXATYL-TM- /X/ /X/ /X/ /X/
SPD 424 /X/ /X/ /X/ /X/
FOZNOL-TM- (LAMBDA) /X/ /X/ /X/ /X/
BALSALAZIDE
PENTASA-TM- 500MG /X/ /X/ /X/ /X/
RECOMBINANT VACCINES /X/ /X/ /X/ /X/
</TABLE>
X = ALREADY OUTLICENSED /X/ = RIGHTS OWNED, FUTURE POTENTIAL MARKET
(1)EXCEPT UK/IRELAND, WHERE SHIRE OWNS THE RIGHTS
<PAGE>
CHAIRMAN(1) AND EXECUTIVE DIRECTORS:
Dr James Cavanaugh Chairman
Rolf Stahel Chief Executive
Dr Wilson Totten Group R&D Director
Angus Russell Group Finance Director
NON-EXECUTIVE DIRECTOR APPOINTMENTS
FROM BIOCHEM:
Dr. Francesco Bellini
James A. Grant
Gerard Veilleux
(1)Non-executive
<PAGE>
HEADLINE MERGER TERMS
- Fixed price offer of US$37, subject to cap and floor
- premium of 39.6% over BioChem's closing price on December 8, 2000
- Values BioChem(1) at approximately US$4.0 billion
- Cap and floor set:
<TABLE>
<S> <C>
Shire ADS ($) Terms
$47.20 - $70.80 Fixed price of US$37
< $47.20 Fixed exchange ratio of 0.7839
> $70.80 Fixed exchange ratio of 0.5226
</TABLE>
- Merger agreement contains termination clauses and 19.9% option
- Closing expected Q2 2001(2)
- Pro forma market capitalisation of US$8.5 billion(3)
(1)Fully diluted share capital
(2)Subject to required approvals
(3)As of December 8, 2000 on a fully diluted basis
<PAGE>
SUMMARY:
- Similar strategies
- Track record of high profitability
- Above industry growth(1)
- More products and projects
(1)based on pro forma 1999 combined company revenue
<PAGE>
[LOGO]
....a merger of two of the most profitable,
fast growing, publicly traded,
specialty pharmaceutical
companies...
<PAGE>
SHIRE HISTORICAL FINANCIAL PERFORMANCE (US$M)
<TABLE>
<CAPTION>
1998 1999 9M TO 30/9/00(1)
---- ---- -----------------
<S> <C> <C> <C>
Revenue 309.0 401.5 380.6
Cost of sales (95.0) (93.5) (67.4)
-------- -------- -------
Gross profit 214.0 308.0 313.2
R&D (59.3) (77.5) (86.3)
Selling and G&A (101.0) (130.9) (112.6)
-------- -------- -------
EBITDA 53.7 99.6 114.3
(% MARGIN) 17% 25% 30%
Operating income 28.5 71.1 91.5
(% MARGIN) 9% 18% 24%
Net interest (0.1) (2.4) (4.3)
Other income/(expense) 0.4 (0.5) 0.1
Tax (3.0) (16.1) (25.3)
-------- -------- -------
Net income(2) 25.8 52.1 62.0
</TABLE>
(1)Unaudited period
(2)Net income stated prior to APB25 charge and exceptionals
<PAGE>
BIOCHEM HISTORICAL FINANCIAL PERFORMANCE (US$M)
<TABLE>
<CAPTION>
1998(1) 1999(1) 9M TO 30/9/00(1)(2)
---- ---- -----------------
<S> <C> <C> <C>
Revenue (excludes CliniChem) (3) 127.1 136.4 112.8
Cost of sales (8.0) (9.6) (9.8)
-------- -------- -------
Gross profit 119.1 126.8 103.0
R&D (34.4) (60.3) (35.7)
Selling and G&A (21.1) (17.8) (17.7)
-------- -------- -------
EBITDA 63.6 48.7 49.6
(% MARGIN) 50% 36% 44%
Operating income 59.0 43.2 44.4
(% MARGIN) 46% 32% 39%
Net interest 6.5 3.2 7.8
Other (expense)/income (81.6) 4.1 99.4
Tax (5.1) (6.5) (7.2)
-------- -------- -------
Net (loss)/income (21.2) 44.0 144.4
</TABLE>
(1)US GAAP
(2)Unaudited period. Converted at an average exchange rate of C$1.47 per US$.
(3)Excludes CliniChem revenues of US$ 14.4m in 1998, US$49.3m in 1999 and
US$29.2m in 2000
<PAGE>
UNAUDITED PRO FORMA SHIRE AND BIOCHEM US
GAAP HISTORICAL FINANCIAL PERFORMANCE (US$M)
<TABLE>
<CAPTION>
1998 1999
---- ----
<S> <C> <C>
Revenue (excludes CliniChem) 436.0(1) 537.9(1)
Cost of sales (103.0) (103.0)
----------- -------
Gross profit 333.0 434.9
R&D (93.6) (137.8)
Selling and G&A (122.1) (148.6)
----------- -------
EBITDA 117.3 148.5
(% MARGIN) 27% 28%
Operating income 87.4 114.3
(% MARGIN) 20% 21%
Net interest 6.4 0.8
Other (loss)/income 3.8 3.7
Tax (8.1) (22.6)
----------- -------
Net income(2) 89.5 96.2
</TABLE>
(1)Excludes CliniChem revenues of US$14.4 m in 1998 and US$49.3m in 1999.
(2)Net income stated prior to APB25 charge and exceptionals
<PAGE>
BROADENS PRODUCT PORTFOLIO
<TABLE>
<CAPTION>
LAST TWELVE MONTHS (LTM) 9/30/2000
----------------------------------------------------------------
REVENUES (US$M) YOY% GROWTH MARKET SHARE(2)
--------------- ----------- ---------------
<S> <C> <C> <C>
Adderall 204.1 +71% 33%
3TC(1) 125.5 +3% 55%(3)
Agrylin 47.4 +46% 15%
Pentasa 46.0 -18% 18%
Carbatrol 23.2 +96% 25%
ProAmatine 20.1 -5% 20%
Zeffix(1) 10.9 +445%
</TABLE>
(1)Trademarks of GlaxoSmithKline. Royalty income plus Canadian product sales
(2)Market share based on IMS prescription data in US market
(3)Market share based on NRTI monotherapy and combination therapy product
revenues; moving 13 week total prescriptions
Source: Shire management and BioChem Pharma management. Assumes an average
exchange rate of C$1.47 per US$
