Forward-Looking Statements
This presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements include statements that address activities, events or
developments that Bradley expects, believes or anticipates will or may occur in the future, such as sales and
earnings estimates, other predictions of financial performance, timing of payments on indebtedness, launches by
Bradley of new products, market acceptance of Bradley’s products and the achievement of initiatives to enhance
corporate governance and long-term shareholder value. Forward-looking statements are based on Bradley’s
experience and perception of current conditions, trends, expected future developments and other factors it
believes are appropriate under the circumstances and are subject to numerous risks and uncertainties, many of
which are beyond Bradley’s control. These risks and uncertainties include Bradley’s ability to: estimate sales;
comply with the restrictive covenants under its credit facility; refinance its credit facility, if necessary; access the
capital markets on attractive terms or at all; favorably resolve the pending SEC informal inquiry and file required
financial statements with the SEC in a timely manner; remediate its material weaknesses in its internal controls;
maintain sales of its products; successfully acquire, develop, integrate, or sell new products, including
POLYPHENON(R) E Ointment when and if approved by the FDA and the products incorporating the delivery
systems to be developed by Polymer Science; or effectively react to other risks and uncertainties described from
time to time in Bradley’s SEC filings, such as fluctuation of quarterly financial results, estimation of product
returns, chargebacks, rebates and allowances, concentration of customers, reliance on third party manufacturers
and suppliers, litigation or other proceedings (including the pending class action, shareholder derivative lawsuits
and controversies or proceedings arising out of a potential proxy contest at our annual meeting), government
regulation, stock price volatility and ability to achieve strategic initiatives to enhance long-term shareholder
value. Further, Bradley cannot accurately predict the impact on its business of the approval, introduction, or
expansion by competitors of generic or therapeutically equivalent or comparable versions of Bradley’s products
or of any other competing products. In addition, actual results may differ materially from those projected.
Bradley undertakes no obligation to publicly update any forward-looking statement, whether as a result of new
information, future events or otherwise.
Additional Information
In connection with its rescheduled 2006 Annual Meeting of Stockholders, Bradley Pharmaceuticals, Inc. will file a
notice of annual meeting and proxy statement with the SEC. BEFORE MAKING ANY VOTING DECISION,
STOCKHOLDERS OF BRADLEY ARE URGED TO READ THE NOTICE OF ANNUAL MEETING AND PROXY
STATEMENT AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC WHEN THEY BECOME
AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT BRADLEY AND THE
RESCHEDULED 2006 ANNUAL MEETING OF STOCKHOLDERS. Stockholders can obtain free copies of the
notice of annual meeting and proxy statement and other documents filed by Bradley with the SEC, including the
white proxy card, when they become available by contacting Bradley at Bradley Pharmaceuticals, Inc., Investor
Relations, 383 Route 46 West, Fairfield, NJ 07004-2402, or by telephone at (973) 882-1505, ext. 313. In addition,
documents filed with the SEC by Bradley are available free of charge at the SEC’s website at www.sec.gov.
Bradley, its directors, executive officers and other members of management may be deemed to be participants in
the solicitation of Bradley’s security holders in connection with its rescheduled 2006 Annual Meeting of
Stockholders. Stockholders may obtain information regarding the names, affiliations and interests of such
individuals in Bradley’s Annual Report on Form 10-K for the year ended December 31, 2005 and its proxy
statement when it becomes available.
Company Overview
Specialty pharmaceutical company
In-license, develop and bring to market patent-protected
pharmaceuticals
Create dynamic brands, leveraging core expertise of
aggressive, targeted marketing and sales
Target specialties include:
Dermatology
Podiatry
Gastroenterology
OB/GYN
Committed to creating long-term
shareholder value
Company Overview
Dermatologic and Podiatric Brands
126 Sales Representatives*
74.8% of Net Sales**
* As of August 31, 2006
** Quarter ended June 30, 2006
Gastrointestinal, Nutritional and Women’s Health brands
49 Sales Representatives*
25.2% of Net Sales**
Authorized Generic Versions of Doak & Kenwood Brands
Launched Q2 2006
Major Brands - Doak
Adoxa
Zoderm
Rosula
Solaraze Gel
Keralac
Carmol 40
Zonalon
LidaMantle
Total Net Sales by Category for the 6 mos. ended June 30, 2006 as a percent of total Net Sales for the same period
Source: Form 10-Q for Quarter Ended June 30, 2006
Major Brands - Kenwood
Entsol/
Brontex
Deconamine/Tyzine
Pamine
AnaMantle HC
Flora-Q
Total Net Sales by Category for the 6 mos. ended June 30, 2006 as a percent of total Net Sales for the same period
Source: Form 10-Q for Quarter Ended June 30, 2006
All Others
Company Background
History
1985: Founded by Daniel Glassman,
Chairman, President and CEO
1991: Company shares list on the
NASDAQ via public offering
2003: Company lists on the NYSE
Headquarters
Fairfield, New Jersey
Employees
311, including 175 sales
representatives*
* As of August 31, 2006
Strategically Expanding From…
Acquire the rights to products through acquisition
and mergers with other specialty pharmaceutical
companies
Enhance product brands by extending the lifecycle
of existing drugs and introducing product line
extensions
Grow through focused, aggressive marketing and
targeted promotion to achieve the highest return
on investment
Strategically Expanding To…
Bring to Market patent-protected brands
positioned to fill unmet medical needs, and
leverage Bradley’s marketing & sales expertise to
deliver long-term shareholder value
In-License phase II and phase III drugs with long-
term intellectual property protection
Develop products in collaboration with our
partners and the FDA to complete clinical studies,
NDA approvals and commercialization
Bradley Financial Snapshot
Net Sales – 3 Full Years
Millions
Bradley Financial Snapshot
Net Sales 2005 vs. 2006
Millions
Bradley Financial Snapshot
Net Income – 3 Full Years
Millions
Bradley Financial Snapshot
Net Income - 2005 vs. 2006
*
* Includes an R&D expense for the initial payment to MediGene AG of $5.0 million and a share-based compensation charge of $927,000
** Includes a share-based compensation charge of $922,000.
*** Includes a research and development expense for the initial payment to MediGene of $5 million and a share-based compensation charge of $1,849,000.
**
***
Millions
Bradley Financial Snapshot
Gross & Operating Profit % – 3 Full Years
%
%
%
%
%
%
Bradley Financial Snapshot
Gross & Operating Profit % 2005 vs. 2006
* Includes a R&D expense for the initial payment to MediGene AG of $5.0 million and a share-based compensation charge of $927,000
** Includes a share-based compensation charge of $922,000.
*** Includes a research and development expense for the initial payment to MediGene of $5 million and a share-based compensation charge of $1,849,000.
*
**
***
Bradley Financial Snapshot
Earnings Per Share, Fully Diluted – 3 Full Years
* Based on 12,840,000 Diluted Shares
** Based on 18,410,000 Diluted Shares
*** Based on 17,950,000 Diluted Shares
**
***
*
Bradley Financial Snapshot
Earnings Per Share, Fully Diluted 2005 vs. 2006
a Based on 18,180,000 Diluted Shares, b Based on 16,500,000 Diluted Shares, c Based on 16,280,000 Diluted Shares, d Based on 16,520,000 Diluted Shares
b †
e
a
c
d † †
f † † †
† Includes a R&D expense for the initial payment to MediGene AG of $5.0 million and a share-based compensation charge of $927,000
† † Includes a share-based compensation charge of $922,000.
† † † Includes an R&D expense for the initial payment to MediGene of $5 million and a share-based compensation charge of $1,849,00
e Based on 16,310,000 Diluted Shares
f Based on 16,510,000 Diluted Shares
Key Success Factors
Experienced Management Team
18
VP, Trade/Managed Care Relations
William Renzo
14
VP, Chief Scientific Officer
Ralph Landau, Ph.D.
21
VP, Corporate Development
Alan Goldstein
9
Sr. VP, Sales & Marketing
Bradley Glassman
10
VP, Chief Financial Officer
Brent Lenczycki
36
Chairman of the Board, President and CEO
Daniel Glassman
Experience (yrs)
Title
Name
Total Sales Representatives
Large National Field Force
Key Success Factors
* As of 8/31/06
*
Synergistic Promotional Plan/Execution
Key Success Factors
Foster Dynamic Physician Relationships
Dermatology
Home Office Doctor Program
Physician Sample Closet Program
Influential Leader Endorsements
Relationship Building Programs
Key Success Factors
Foster Dynamic Physician Relationships
Dermatology
Skin Cancer Screening Tour
Conducted more than 4000 free screenings
Generated more than 55 million media impressions
about the prevalence of skin cancer and the
importance of seeing a dermatologist
Key Success Factors
Key Success Factors
Foster Dynamic Physician Relationships
Podiatry
“See the Podiatrist” Campaign
Educational Seminars
Major Sponsor, Superbones/Superskin ™ CME
Pharmacists
“Profiles in Pharmacy” Campaign
Leaders in Community Pharmacy Advisory Board
Physicians Assistants/Dermatology
CME Sponsorship
Major Supporter, SDPA
Key Success Factors
Foster Dynamic Physician Relationships
Gastroenterology, Colon Rectal Surgery, OB/GYN’s
Home Office Doctor Program
Major conference exhibitor
Digestive Disease Week
American College of Gastroenterology
Sponsored more than 61 GE specialty society meetings
Key Success Factors
Lifecycle Management
Introducing new brands and line extensions filling unmet
patient and physician needs
Key Success Factors
Lifecycle Management
Introducing new brands and line extensions filling unmet
patient and physician needs
Clinical Support
Current and On-going Studies:
Zoderm®: Acne Tolerability/Efficacy (multi-center study)
Keralac™ Nail Gel: Dystrophic Nails (Dr. Robbins)
Keralac™ Nail Gel: Brittle Nails (Dr. Scher)
Solaraze® Gel: multiple studies
Key Success Factors
Clinical Support
Current and On-going Studies:
Entsol®: Sinusitis, adjunctive therapy to inhaled steroids
Flora-Q®: IBD, maintenance of remission
Flora-Q®: Treatment of diarrhea predominant IBS
Key Success Factors
Key Success Factors
Merger/Acquisition/Co-Marketing Activity – Last 5 Yrs
Merger/Acquisition/Co-Marketing Activity – Prior
Company
Transaction
Adams Respiratory
ENTSOL®
MediGene
Polyphenon® E
Lundbeck
Flora-Q®
Company
Transaction
Mission Pharmacal
AnaMantle HC®
Quintiles
Bioglan
SkyePharma
Solaraze®
Company
Transaction
Bayer
LidaMantle®
Berlex
Deconamine®
Doak Pharmacal
Doak Pharmacal
Hoechst
Duadacin®
Kenwood Labs
Kenwood Labs
Procter & Gamble
Brontex®
Roche
Carmol®
Company
Transaction
Sandoz
AcidMantle®
Schering-Plough
Tyzine®, Nitroglyn®, Ircon®, Ipsatol®
Upjohn
Pamine®, Adeflor®
Upsher-Smith
Lubrin®
Tsumora
Trans-Ver-Sal®, Glandosane®
Increasing Shareholder Value
Pursuing initiatives to enhance long-term shareholder
value as part of the Company’s existing strategic plan to:
Improve and Expand Product Offerings
Strengthen Financial Profile
Increase Alignment with Shareholders’ Interests
Focus Intensely on Operations
Increasing Shareholder Value
Improve and Expand Product Offerings
In-License phase II and III drugs
Develop and bring to market products with long-term intellectual
property protection
Expand existing partnerships and joint venture
relationships
Foster new strategic alliances that deliver a stronger product
portfolio
Increase focus on research and development activities
Develop products organically with longer lifecycles
Extend indications for current product portfolio
Improve and Expand Product Offerings
Solaraze Gel
Strong brand growth
Net Sales for the 2 nd Quarter 2006 for Solaraze have
increased 264% since the 1 st Quarter 2005
Current and On-Going Clinical Studies
Solaraze® Gel: AK Extension 1 year tracking multicenter
(Dr. Rigel)
Solaraze® Gel: vs. Efudex® (Dr. Smith)
Solaraze® Gel: AK of the Lip Study (Dr. Nelson)
Solaraze® Gel: Proof of Concept, New Indications (Dr.
Elewski, Dr. Wolf, Dr. Kaplan and Dr. Draelos)
Increasing Shareholder Value
Improve and Expand Product Offerings
Collaboration with MediGene AG : Polyphenon ® E (PPE)
Indication submitted for the treatment of external genital
warts and perianal warts caused by human papilloma
virus*
Co mposition*
Ointment formulation with a defined composition of tea
catechins in a 15% w/w concentration
Mechanism of action more than immune response modifier*
Direct antiviral activity
Immune modulatory activity
Potent antioxidant
PDUFA date October 28 th 2006
United States distribution rights; additional territories
possible
Competitor: Aldara ® (1 st half 2006 - $113 million in sales)**
Increasing Shareholder Value
* Source: IMS
** Source: MediGene AG
Improve and Expand Product Offerings
PPE Competitive Positioning: As Effective as Aldara ®
Clearance rate of baseline warts at least equivalent to Aldara®
Clears newly emerging warts
Relatively high clearance in males
Relatively low recurrence rates
Summary of Combined Pivotal Data
Aldara®*
Polyphenon ® E 15% Ointment
13 – 27.5%***
6.2%
Recurrence Rate:
Not Investigated
50% (F 72%, M 33%)
54.9% (F 61%, M 49%)
56.7% (F 64%, M 50%)
Efficacy: **
Clearance of all warts
Clearance of baseline warts
* Aldara® pivotal data; no head-to-head comparison
** Based on the intent-to-treat population (ITT)
*** 13% reported in pivotal studies; higher numbers reported in publications
Increasing Shareholder Value
Source: MediGene AG
Improve and Expand Product Offerings
PPE Competitive Positioning: Better Safety Profile than Aldara ®
Systemic side effects unlikely
Skin reactions mild
Skin reactions decrease with time
No requirements for drug holidays
Summary of Combined Pivotal Data
Aldara® *
Polyphenon® E
•3x/week
•3x/day (compliance 90%)
•Potential for 2x/day regimen.
(Additional studies needed)
Dosage/
Administration:
Systemic side effects reported
in some patients
Severe reactions reported
with 3x/week application
(Integrated “drug holidays”)
in dosing program
Systemic side effects highly unlikely
Majority of local reactions mild to
moderate and reduce with time No
requirements for drug holidays
Safety:
*Aldara® pivotal data; no head-to-head comparison
Increasing Shareholder Value
Source: MediGene AG
Increasing Shareholder Value
Strengthen Financial Profile
Continue to remediate all material weaknesses previously disclosed
Implement additional Information Technology controls,
policies and procedures
Financial closing process
Created Director of Finance position responsible for
overseeing the financial closing process
Recruitment of additional personnel with accounting and
finance backgrounds
Explore alternatives regarding indebtedness
Implement a cost reduction program
Increasing Shareholder Value
Increase Alignment with Shareholders’ Interests
Actively explore initiatives to improve shareholder value
Communicate the Company’s existing strategic plan in
appropriate forums
Participate in industry analyst conferences
Conduct quarterly earnings conference calls
Increasing Shareholder Value
Focus Intensely on Operations
Improve performance across Field Sales Force
Establish enhanced goals and actions
Improve training and accountability through field
operations
Solid track record of delivering sales and profit growth
Strong management team and infrastructure with a core
expertise in marketing and sales
Strong relationships with key target physician specialties
Strategically evolving from lifecycle management to
in-licensing & bringing to market patent-protected
products that fill strategically defined patient &
physician needs
Focused on initiatives to increase shareholder value
Why Bradley Pharmaceuticals
9/6/06