Robert EssnerChairman, President and Chief Executive Officer
Bear Stearns Healthcare Bear Stearns Healthcare ConferenceConference
September 14, 2004September 14, 2004
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Forward-Looking Statement
The statements in this presentation that are not historical facts are forward-looking statements based on current expectations of future events that involve risks and uncertainties including, without limitation, risks associated with the inherent uncertainty of pharmaceutical research, product development, manufacturing, commercialization, economic conditions including interest and currency exchange rate fluctuations, the impact of competitive or generic products, product liability and other types of lawsuits, the impact of legislative and regulatory compliance and obtaining approvals, and patent, and other risks and uncertainties, including those detailed from time to time in Wyeth’s periodic reports, including quarterly reports on Form 10-Q and the annual report on Form 10-K, filed with the Securities and Exchange Commission. Quarterly results, in particular, can vary due to issues which include, but are not limited to, changes in exchange rates, the timing of actions taken by the Company to ensure long-term improvements to our manufacturing processes, the timing of regulatory approval of new products and/or facilities and the timing of promotional programs. Actual results may vary materially from the forward-looking statements. The Company assumes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.
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Wyeth Delivering Strong Growth in 1st Half 2004
Revenues +11% Human Pharmaceuticals +11%
Consumer Health +9%
Animal Health +16%
SG&A +5%
R&D* +10%
EPS* +5%* Excluding Impact of Certain Significant Items
A reconciliation of reported net income and diluted EPS as reported under GAAP to net income and diluted EPS before certain significant items is available in Wyeth’s 2nd quarter earnings release found at www.wyeth.com.
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®®
Focus on Growth Opportunities: Five “Billion Dollar” Franchises in 2004
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U.S. Antidepressant Market Growth Slowed
Comparison to Increased Utilization Following 9/11
Recent Negative Publicity Regarding Suicidality in Adolescents
International Growth Continues to be Strong
Effexor is #1 Selling Antidepressant in International Markets
Expect the Category to Rebound and Effexor to Grow Faster Than the Category Overall
Focus on Growth Opportunities: Near-TermStrong and Growing Product Line
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Will Be a Market Leader in Biologic Therapy for All Indications
Ankylosing Spondylitis – Approved Psoriatic Arthritis – Approved Psoriasis – Approved U.S., EU Year-end
- New and Total Prescription Volume in Dermatology Up Sharply in 2nd Quarter
On Target to Achieve 2004 Revenue Near the High-end of Guidance Range for North America
Sales Outside of North America to More Than Double
Focus on Growth Opportunities: Near-TermStrong and Growing Product Line
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Remains One of the Fastest Growing Brands in the Highly Competitive PPI Marketplace
Protonix Has Continued Strong Growth Despite the Launch of Prilosec OTC and generic omeprazole
Continues to Maintain the Highest Overall Managed-care Formulary Access and Reimbursement of the PPI Class
Focus on Growth Opportunities: Near-TermStrong and Growing Product Line
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Major Improvements in Prevnar Manufacturing Capabilities
Contract Vial Filling Now Online Pre-filled Syringes Projected for 2005
Global Demand for Prevnar Remains Strong – Recognizing Public Health Impact
CDC Returned to 3-dose Series in July EMEA Returned to 4-dose Series in
August®®
Focus on Growth Opportunities: Near-TermStrong and Growing Product Line
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Continue to Support the Appropriate Use of Hormone Therapy for Indicated Uses
Lower Doses Provide Clinicians with New Treatment Options
Low Dose DTC Campaign Underway®®
Focus on Growth Opportunities: Near-TermStrong and Growing Product Line
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Challenges Facing Today’s Pharmaceutical Industry
Political Issues
Structural Issues
Litigation
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Wyeth R&D: Focus on Innovation
Create an Environment Within R&D That Supports, Sustains and Recognizes Scientific Innovation
Create a System That Does Not Screen Out Innovation, Even When Its Potential Is Hard to Understand Early on
Develop an Organization With the Ability to Continually Adapt to Follow Where the Science Leads
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Innovative Early R&D Programs
Alzheimer’s Disease Programs Immunotherapeutic Approaches / Small Molecule for Symptomatic
Treatment
Oncology Platforms Three Oncology R&D Strategies
- Cell Cycle Inhibitors
- Cell Signaling Pathway Inhibitors
- Antibody-Targeted Chemotherapy
Inflammation Programs Small Molecule Inhibition of TNF-alpha cPLA Inhibitors for Inflammation, Pain, Asthma
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Wyeth’s Strong Phase 3 Pipeline
Tygacil™ - New Broad-spectrum Antibiotic for Empiric Treatment of Serious Infections
Bazedoxifene/Bazedoxifene/CE – New Selective Estrogen Receptor Modulator and Combination for Osteoporosis and Vasomotor Symptoms
DVS-233 – New SNRI for Depression and Non-hormonal Treatment of Vasomotor Symptoms
Temsirolimus – Novel mTOR Inhibitor Approach Effective in Multiple Tumor Types
Bifeprunox – Novel Treatment for Schizophrenia with Improved Safety Profile
Tanaproget – First Nonsteroidal Oral Contraceptive
New Molecular EntitiesNew Molecular Entities
Librel™ - New Oral Contraceptive To Eliminate Cycling and Premenstrual Dysphoric Disorder
Other Important Life Cycle Programs Ongoing
Life Cycle Management ProgramsLife Cycle Management Programs
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Tygacil™
Effexor® XR Panic
BMP-2 Posterolateral Spine
Bazedoxifene Osteoporosis Prevention
Librel®
Rapamune® Renal (Life Cycle Programs)
DVS-233 Depression
Bifeprunox
Tanaproget
DVS-233 Vasomotor Symptoms
Temsirolimus RenalCell Cancer
Temsirolimus MantleCell Lymphoma
Temsirolimus Breast Cancer
Rapamune ® Liver
ReFacto® AF
Next Wave of Filings: 2004-2006
2004
2005
2006
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2004 2005 2006 20072004 2005 2006 2007
Enbrel (psoriasis)*
Temsirolimus
LibrelTygacil
Bazedoxifene DVS-233 (dep)
Bifeprunox
Tanaproget
DVS-233 (vaso)
>$1 Billion Peak Year Sales Potential
>$500 Million Peak Year Sales Potential
Leading to Significant New Product Opportunities to Support Growth at Wyeth
Projected Launches 2004-2007
* Launched U.S. 2Q04
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Diet Drug Litigation
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Diet Drug Litigation
Initial Opt Out Cases The Company Has Resolved the Claims of All but a
Small Percentage of the Initial Opt Outs
Downstream Opt Out Cases Will Continue to Defend Wyeth Aggressively and Bring
Cases to Trial Continue to Challenge Many of the Downstream Opt Out Cases That
Appear Medically Deficient Some Early Successes in the Philadelphia and New Jersey Courts Recent Ruling by Judge Bartle on Bifurcated Trials
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Diet Drug Litigation
PPH Cases As of July 19, 2004, Wyeth Has Been Named in ~350
Lawsuits Where the Plaintiff Alleges a Claim of PPH~75 Cases Appear Eligible to Pursue a PPH Lawsuit Under the
Terms of the National Settlement
~95 Expect to be Dismissed
~180 Insufficient Information
Appeal of Cappel - Texas Verdict Underway
Wyeth 10-Q filed August 9, 2004
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Diet Drug Litigation
Seventh Amendment to National Settlement Preliminary Approval Received Last Month Designed to Resolve Matrix Level 1 and 2 Claims As
Well as Future Matrix Claims
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Wyeth Is A Company That Has Built Itself Around Innovation
A Strong Line of Growing Products on the Market Supported by a Dynamic and Competitive Commercial Organization
Outstanding Near-term Pipeline With Significant Commercial Potential
Backed by a Research Organization of Remarkable Productivity
Wyeth Has the Flexibility and Creativity to Take the Right Product and Make It Successful in Virtually Any Category Anywhere in the World