Chiron SC 13E3/A Going private transaction (amended) | SEC 11 Jan 06

Exhibit 99.(c)(4)

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Project Heron

Update for the Board of Directors

PRELIMINARY | SUBJECT TO FURTHER REVIEW AND EVALUATION

October 18, 2005

THESE MATERIALS MAY NOT BE USED OR RELIED UPON FOR ANY PURPOSE OTHER THAN AS SPECIFICALLY CONTEMPLATED BY A WRITTEN AGREEMENT WITH CREDIT SUISSE FIRST BOSTON AND MORGAN STANLEY.

Heron Stock Price Performance

Stock Price Performance - August 31, 2004 - October 14, 2005

Current Share Price	$	43.35
52-Week High	$	45.07
52-Week Low	$	29.91
52-Week Avg.	$	35.88
3 Months Avg.	$	39.61

[CHART]

Since the Neptune offer, Heron stock has traded based on the underlying assumption of what Neptune is expected to pay and not based on fundamentals

Heron Stock Price Performance Compared to Relevant Indices

Stock Price Performance - August 31, 2004 - October 14, 2005

	Performance Since
Stock Price Performance	8/31/2004		12/31/2004		3/31/2005		6/30/2005
Heron	2.3	%	30.1	%	23.6	%	24.2	%
NASDAQ	12.3	%	(5.1	)%	3.3	%	0.4	%
AMEX Biotech Index	25.2	%	14.0	%	25.9	%	9.9	%
Large Cap Biotech	35.3	%	23.9	%	35.3	%	14.3	%
Large Cap Biotech (excl. DNA)	19.6	%	10.5	%	27.8	%	19.9	%
Large Pharma	(4.3	)%	1.5	%	4.7	%	0.2	%

[CHART]

Large Cap Biotech includes AMGN, BIIB, DNA, GENZ, GILD, MEDI

Large Pharma includes AZN, BMY, GSK, LLY, MRK, NVS, PFE, RHHBY

Heron’s Valuation Parameters

Assessment of Valuation (1)

[CHART]

(1) As of August 2005, unaffected price the day immediately prior to announcement; Street forecast EPS estimates as of 10/14/05

(2) Discounted at 12.0%

(3) Reflects analyst price targets post announcement of Neptune offer as of 10/14/05

(4) Assumes perpetual growth rate of 1.0% – 3.0% for BioPharma (LTM NOPAT multiple of 12.4x), 2.0% – 4.0% for Vaccines (LTM NOPAT multiple of 15.4x), 2.0% – 4.0% for Blood Testing (LTM NOPAT multiple of 13.3x) and (2.0)% – 0.0% for Corporate Royalties (LTM NOPAT multiple of 8.7x); derived from Heron Management Projections

Discounted Cash Flow Sensitivity Analysis

Deviation from Midpoint Valuation (1)

[CHART]

(1) Base DCF value of $42.65 assumes a discount rate of 11.0% and a perpetual growth rate of 3.0%

Source: Heron Management Forecast as of August 2005

Heron Sum-of-the-Parts Analysis

Perpetual Growth Methodology (1)

Sum-of-the-Parts Valuation

[CHART]

(1) Assumes a discount rate of 11.0%

(2) As of August 31, 2005

(3) Assumes perpetual growth rate of 2.0% for BioPharma, 3.0% for Vaccines, 3.0% for Blood Testing and (1.0)% for Corporate Royalties

Source: Heron Management Forecast as of August 2005

Selected Companies Analysis

(in millions, except per share amounts)

	Stock		% Of										NOPAT						Long-
	Price		52-Week		Equity		Enterprise		Revenue Multiple				Multiple		P/E				Term		PEG
Company	10/14/2005		High		Value		Value		CY 2006E		CY 2007E		LTM		CY 2006E		CY 2007E		EPS Grw.		CY 2006E		CY 2007E
Large Cap Biotech
Amgen	$	75.75	87.1	%	$	94,906	$	94,413	6.5	x	5.9	x	18.8	x	20.8	x	18.5	x	16.4	%	1.27	x	1.12	x
Biogen Idec	38.02		54.3	%	13,003		11,244		4.3		3.9		22.9		19.1		17.7		14.2	%	1.34		1.25
Celgene	51.70		87.9	%	10,430		9,707		13.1		9.8		NM		51.7		34.9		47.2	%	1.09		0.74
Genentech	85.00		89.5	%	93,248		92,821		10.7		8.4		NM		47.4		36.0		33.9	%	1.40		1.06
Genzyme	69.50		91.2	%	18,517		18,068		5.7		5.1		34.4		25.6		22.5		19.1	%	1.34		1.18
Gilead Sciences	47.42		95.9	%	22,432		20,643		9.1		8.1		37.0		27.2		24.4		19.7	%	1.38		1.23
MedImmune	32.93		94.1	%	8,243		6,977		5.1		4.4		NM		72.9		46.3		25.9	%	2.81		1.79

					Mean				7.8	x	6.5	x	28.3	x	37.8	x	28.6	x	25.2	%	1.52	x	1.20	x
					Median				6.5		5.9		28.7		27.2		24.4		19.7	%	1.34		1.18
					High				13.1		9.8		37.0		72.9		46.3		47.2	%	2.81		1.79
					Low				4.3		3.9		18.8		19.1		17.7		14.2	%	1.09		0.74

(in millions, except per share amounts)

	Stock		% Of										NOPAT						Long-
	Price		52-Week		Equity		Enterprise		Revenue Multiple				Multiple		P/E				Term		PEG
Company	10/14/2005		High		Value		Value		CY 2006E		CY 2007E		LTM		CY 2006E		CY 2007E		EPS Grw.		CY 2006E		CY 2007E
BioPharma & Blood Testing
Abbott Laboratories	$	42.64	85.3	%	$	66,631	$	70,833	3.1	x	3.0	x	20.3	x	15.8	x	14.0	x	9.6	%	1.65	x	1.46	x
Bayer AG	36.37		94.7	%	26,560		35,249		1.0		1.0		25.3		12.9		16.2		7.0	%	1.84		2.31
Johnson & Johnson	63.70		91.0	%	191,744		181,167		3.3		3.1		18.7		16.9		15.3		11.2	%	1.51		1.37
Roche Holdings	146.37		97.0	%	126,413		125,064		4.1		3.7		24.7		24.3		19.3		14.3	%	1.70		1.35
BioPharma & Vaccines
GlaxoSmithKline	$	26.17	98.6	%	$	150,109	$	152,821	3.8		3.6		17.2		17.1		15.4		6.4	%	2.65		2.40
MedImmune	32.93		94.1	%	8,243		6,977		5.1		4.4		NM		72.9		46.3		25.9	%	2.81		1.79
Merck & Co.	27.16		76.8	%	59,704		56,248		2.6		2.6		12.3		11.3		11.3		4.3	%	2.66		2.65
Sanofi Aventis	84.43		92.6	%	115,491		131,728		3.7		3.5		NM		14.0		12.5		11.5	%	1.22		1.08
Wyeth	45.09		96.0	%	60,762		62,949		3.1		2.9		16.7		14.4		13.5		7.1	%	2.04		1.91

					Mean				3.4	x	3.1	x	19.5	x	21.8	x	17.9	x	11.0	%	2.0	x	1.8	x
					Median				3.5		3.1		19.5		16.4		15.3		10.4	%	1.8		1.6
					High				5.1		4.4		25.3		72.9		46.3		25.9	%	2.8		2.7
					Low				1.0		1.0		12.3		11.3		11.3		4.3	%	1.2		1.1

(in millions, except per share amounts)

	Stock		% Of										NOPAT						Long-
	Price		52-Week		Equity		Enterprise		Revenue Multiple				Multiple		P/E				Term		PEG
Company	10/14/2005		High		Value		Value		CY 2006E		CY 2007E		LTM		CY 2006E		CY 2007E		EPS Grw.		CY 2006E		CY 2007E
Blood Testing
Beckman Coulter	$	49.97	68.1	%	$	3,178	$	3,854	1.5	x	1.4	x	16.0	x	16.5	x	14.0	x	13.9	%	1.19	x	1.01	x
Bio-Rad Laboratories	55.65		88.9	%	1,487		1,581		1.3		NA		18.2		15.5		NM		10.0	%	1.55		NM
Biosite	64.92		96.2	%	1,229		1,109		3.5		3.2		22.8		20.7		19.9		16.2	%	1.28		1.23
Cytyc	25.26		87.0	%	2,912		3,066		5.1		4.3		28.3		21.1		17.1		18.9	%	1.12		0.90
Dade Behring Holdings	34.63		89.5	%	1,584		1,941		1.1		1.1		14.1		24.0		22.8		18.0	%	1.33		1.27
Digene	29.53		91.9	%	601		555		3.1		2.6		78.3		39.5		20.1		30.0	%	1.32		0.67
Diagnostic Products	50.37		87.3	%	1,503		1,430		2.6		2.4		22.9		16.8		15.2		17.8	%	0.94		0.85
Gen-Probe	42.50		80.0	%	2,211		2,009		5.9		5.1		42.0		28.9		23.9		21.6	%	1.34		1.11
Immucor	23.78		66.1	%	1,109		1,087		4.5		NA		39.8		20.4		NM		23.3	%	0.87		NM
Tripath Imaging	7.00		73.5	%	272		251		2.2		1.4		NM		29.4		9.9		37.5	%	0.78		0.26
Ventana Medical System	36.87		82.0	%	1,440		1,374		5.7		NM		61.3		35.2		25.3		25.6	%	1.37		0.99

					Mean				3.3	x	2.7	x	34.4	x	24.4	x	18.7	x	21.2	%	1.19	x	0.92	x
					Median				3.1		2.5		25.6		21.1		19.9		18.9	%	1.28		0.99
					High				5.9		5.1		78.3		39.5		25.3		37.5	%	1.55		1.27
					Low				1.1		1.1		14.1		15.5		9.9		10.0	%	0.78		0.26

Note: Calendarized P/E Multiples and Long-Term EPS Growth Rates are based on I/B/E/S estimates; Projections from Wall Street Equity Research.

(in millions, except per share amounts)

	Stock		% Of										NOPAT					Long-
	Price		52-Week		Equity		Enterprise		Revenue Multiple				Multiple		P/E			Term		PEG
Company	10/14/2005		High		Value		Value		CY 2006E		CY 2007E		LTM		CY 2006E		CY 2007E	EPS Grw.		CY 2006E		CY 2007E
Vaccines
Acambis	$	4.06	77.0	%	$	435	$	288	2.0	x	NM		37.2	x	NM		NM	NM		NM		NM
Berna Biotech AG	9.97		91.6	%	375		293		1.6		1.3		NM		49.2		NM	3.0	%	NM		NM
CSL Limited	27.90		92.0	%	5,171		5,381		2.6		2.5		7.1		19.0		NM	15.8	%	1.21		NM
Nabi Biopharmaceuticals	12.17		76.1	%	742		708		4.2		2.9		NM		NM		NM	NM		NM		NM

					Mean				2.6	x	2.2	x	22.2	x	34.1	x	NM	9.4	%	1.21	x	NM
					Median				2.3		2.5		22.2		34.1		NM	9.4	%	1.21		NM
					High				4.2		2.9		37.2		49.2		—	15.8	%	1.21		—
					Low				1.6		1.3		7.1		19.0		—	3.0	%	1.21		—

(in millions, except per share amounts)

	Stock		% Of										NOPAT						Long-
	Price		52-Week		Equity		Enterprise		Revenue Multiple				Multiple		P/E				Term		PEG
Company	10/14/2005		High		Value		Value		CY 2006E		CY 2007E		LTM		CY 2006E		CY 2007E		EPS Grw.		CY 2006E		CY 2007E
Biotech
Allergan	$	87.41	91.6	%	$	11,889	$	11,590	4.7	x	4.3	x	28.3	x	23.3	x	19.9	x	17.5	%	1.33	x	1.13	x
Biogen Idec	38.02		54.3	%	13,003		11,244		4.3		3.9		22.9		19.1		17.7		14.2	%	1.34		1.25
Celgene	51.70		87.9	%	10,430		9,707		13.1		9.8		NM		51.7		34.9		47.2	%	1.09		0.74
Cephalon	44.86		85.9	%	2,631		5,551		3.9		3.8		33.7		14.4		13.0		18.5	%	0.77		0.70
Elan	8.10		26.6	%	3,533		4,099		7.7		6.8		NM		NM		NM		15.8	%	NM		NM
Forest Laboratories	36.22		74.8	%	12,540		10,709		3.2		3.0		10.3		13.9		12.0		13.5	%	1.03		0.89
Genzyme	69.50		91.2	%	18,517		18,068		5.7		5.1		34.4		25.6		22.5		19.1	%	1.34		1.18
Gilead Sciences	47.42		95.9	%	22,432		20,643		9.1		8.1		37.0		27.2		24.4		19.7	%	1.38		1.23
MedImmune	32.93		94.1	%	8,243		6,977		5.1		4.4		NM		72.9		46.3		25.9	%	2.81		1.79
Millennium Pharmaceuticals	8.26		61.1	%	2,562		2,162		4.3		3.7		NM		NM		NM		15.0	%	NM		NM
Serono	16.47		84.0	%	7,286		6,588		2.3		2.1		12.0		16.0		13.8		18.0	%	0.89		0.77

					Mean				5.8	x	5.0	x	25.5	x	29.3	x	22.7	x	20.4	%	1.33	x	1.08	x
					Median				4.7		4.3		28.3		23.3		19.9		18.0	%	1.33		1.13
					High				13.1		9.8		37.0		72.9		46.3		47.2	%	2.81		1.79
					Low				2.3		2.1		10.3		13.9		12.0		13.5	%	0.77		0.70

Note: Calendarized P/E Multiples and Long-Term EPS Growth Rates are based on I/B/E/S estimates; Projections from Wall Street Equity Research.

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Chiron Inactive SC 13E3/AGoing private transaction (amended)