PBIRG Pharma

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Anthony H. Wild, Ph.D. MedPointe
Pharmaceuticals Tony is the Chairman CEO of
MedPointe Pharmaceuticals, a privately held
specialty pharmaceutical company that develops,
markets, and sells branded prescription products.
He brings a wealth of experience gained in a
global career of 30 years in the pharmaceutical
industry.
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PBIRG Pharma BiotechSan Diego, May 24,
2004Why Specialty Pharma?

• Anthony H. Wild, PhD
• Chairman CEO

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Once Upon a Time, There was Only Specialty Pharma

• Pharmacists started making and selling patent
  remedies
• Chemical companies began packaging their own
  ingredients

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Big Pharma is now 50 years old

• 2nd half of the 20th century has been the era of
  big pharma
• Initially much growth from buying up smaller
  companies (e.g. Glaxo and AH, Schering and
  White)
• Increasingly RD played the key rôle, with
  discovery being the driver

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MA was Secondary

• Pharma acquisitions were generally only carried
  out if organic growth didnt work
• For a while, diversification was popular
• Cosmetics
• Consumer healthcare
• Candies
• This was a distraction at best, a failure at
  worst. Since then all have basically been divested

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During the 1990s, Investors and Wall Street
Arrived

• Increasing pressure to perform and to replicate
  the extraordinary success of the 1970s and 1980s
• This started the move to consolidate
• Hence, although always ego driven, the main
  driver was essentially a negative one
• MA was the holy grail to new products and growth
• Cost cutting provided short-term relief

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Since Then Many Acqusitions!

• Ciba and Geigy one of the first (1970)
• SKF and Beecham (made famous by the book)
• Bristol-Myers and Squibb
• American Home Products and Lederle
• Glaxo and Wellcome

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And Some Not-so-big Ones

• Solvay/Kali Chemie/Duphar
• Rhône-Poulenc Rorer
• Dow and Richardson-Merrell
• Marion Merrell-Dow
• Sanofi and Synthelabo

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More Recently Some Big Ones

• HMR and Rhône-Poulenc Rorer to Aventis
• Sandoz and Ciba-Geigy to Novartis
• Astra Zeneca
• SmithKline Beecham Glaxo-Wellcome
• Warner-Lambert American Home Products (failed)
• Pfizer Warner-Lambert Pharmacia
• Sanofi-Aventis
• Fujisawa and Yamanouchi

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Scale is the Stated Reason

• JP Garnier the new GlaxoSmithKline would be the
  king of science
• Daniel Vasella a strong proponent of scale,
  allowing risk to be spread
• Jean-François Dehecq- additional negotiating
  clout with customers
• Hank McKinnell The addition of
  Pharmaciabenefits all Pfizer stakeholders, but
  patients above all

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The Pharmaceutical Market is Maturing

• Fewer players through consolidation
• The global market has come down to single-digit
  growth in recent years
• Generics continue to make inroads
• 2003 - 54 of Rxs in US (50 in 2002)
• In , generic sales up 22

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Have Mergers Helped?

• There is no objective evidence to show companies
  have done better post-merger
• If anything there is a trend of decreasing market
  shares among the merged companiese.g. Pfizer
  grew at 2 points below market growth in 2003
  i.e. they lost shareHank McKinnell We define
  success as something broader than performance in
  the market place

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2003 Rx Growth in US

• Pfizer 1
• GlaxoSmithKline - 8
• JJ 2
• AstraZeneca - 16

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2003 Rx Growth in US

• Pfizer 1
• GlaxoSmithKline - 8
• JJ 2
• AstraZeneca - 16
• Merck - 1

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Specialty Pharmaceuticals

• Small therapy areas
• Small products
• Mature products

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Specialty Pharmaceuticals

• Small therapy areas
• Small products
• Mature products
• Small companies
• RD has not proven essential in the past

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Specialty Pharma and RD

• RD Poor
• The majority
• King
• Medicis
• MedPointe
• Reliant
• Xcel
• Endo

• RD Rich(er)
• Forest
• Allergan
• Biovail
• Elan
• Altana
• Almirall

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Allergan

• David PyottAllergan the only true specialty
  pharmaceutical company in the world
• Global
• Own RD with discovery
• Fully integrated
• Small enough to be nimble and flexible yet with
  sufficient scale to compete

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Specialty Pharma a Viable Partner

• Big pharma prefers to license from passive
  partners who do not want to co-promote
• David Goliath syndrome at the table
• Big Pharma loses interest if sales do not
  developBiota sues GSK over Relenza
  deal FT May 5, 2004
• AstraZeneca chose MedPointe for ZOMIG over bigger
  potential partners

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• Founded 9/2001 around the acquisition of
  Carter-Wallace
• Sales this year gt 400 mm
• US only, Rx only
• NJ based
• One plant alliances
• Own devt lab
• 950 employees

• Main products
• ASTELIN nasal spray antihistamine
• OPTIVAR ocular antihistamine
• SOMA cash cow
• ZOMIG triptan (from AstraZeneca)

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MedPointe Sales Force

Managed Care/Trade
Allergy Specialists
PrimaryCare
Neurology
50 Reps
300 Reps
60 Reps
10 Mgrs
PCP 1
150 Reps
PCP 2
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ASTELIN TRx Performance 2003
TRx Percent Change Vs Same Month Previous Year
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