EXHIBIT 99.1
FOR IMMEDIATE RELEASE:
Media Contact: Media Contact:
Lowell Weiner Carol Goodrich
American Home Products Warner-Lambert
(973) 660-5013 (973) 540-3320
Investor Contact: Investor Contact:
Thomas Cavanagh George Shields
American Home Products Warner-Lambert
(973) 660-5706 (973) 540-6916
George Sard/Paul Verbinnen/David Reno Fred Spar/Roy Winnick
Sard Verbinnen & Company Kekst & Company
(212) 687-8080 (212) 521-4800
AMERICAN HOME PRODUCTS AND WARNER-LAMBERT
OUTLINE POWERFUL GROWTH STORY FOR AMERICANWARNER
Madison, N.J. and Morris Plains, N.J., November 8, 1999 - At an
analyst presentation, the managements of American Home Products (NYSE:AHP)
and Warner-Lambert Company (NYSE:WLA) reaffirmed their commitment to their
announced strategic business combination and outlined the following key
details of a powerful growth story for AmericanWarner Inc.:
o Accelerated bottom-line growth and strong potential for
accelerating top-line growth and P/E multiple expansion
o Cost synergies: $1.2 billion in annual savings fully captured
by the third year
o Sustainable revenue growth: 11% CAGR through 2002 (estimated
$29.7 billion in 2000 grows to $36.1 billion in 2002)
o Sustainable net income growth: 20% CAGR through 2002 (estimated $4.8
billion in 2000 grows to $6.8 billion in 2002)
o Strong late-stage pipeline and recent launches: ReFacto, Sonata,
Rapamune, Meningitec, Lipitor (Japan) and new product growth expected
from Pregabalin, Zenarestat, Prinomastat, Prevenar (21 launches
from 1999-2002)
o Broad therapeutic area leadership and diverse product portfolio with
less dependence on Lipitor
o Broadest technology capability in the industry (e.g., proteins, vaccines
structure based drug design, small molecules)
o #1 position worldwide in OTC with $4.9 billion in combined
2000 sales
o Enhanced market presence and penetration; increased sales potential
for existing and new products; significant scale in major
international markets; and more attractive in-licensing platform
o Substantial momentum based on "best-of-the-best" merger
philosophy
o Minimal patent exposure in near term
"It's clear that our friendly merger with Warner-Lambert is
strategically and financially compelling and that it will create enormous
near and long-term value for the shareholders of Warner-Lambert and
American Home Products," said John R. Stafford, Chairman, President and
Chief Executive Officer, American Home Products.
Lodewijk J.R. de Vink, Warner-Lambert's Chairman, President and Chief
Executive Officer said, "Our merger with American Home Products is an ideal
strategic combination of two strong and compatible world-class companies
that will create exceptional long-term growth and value for our
shareholders. With a strong and committed leadership team, AmericanWarner
will benefit from substantial momentum and be well positioned to take full
advantage of extraordinary growth opportunities on a global scale."
American Home Products Corporation is one of the world's largest
research-based pharmaceutical and health care products companies. It is a
leader in the discovery, development, manufacturing and marketing of
prescription drugs and over-the-counter medications. It is also a global
leader in vaccines, biotechnology, agricultural products and animal health
care. In 1999, its revenues are expected to approach $14 billion and the
Company will invest $1.8 billion in research and development. It employs
52,000 people worldwide.
Warner-Lambert is a global company devoted to discovering,
developing, manufacturing and marketing quality pharmaceutical, consumer
health care, and confectionery products. Its central research focus is on
heart disease, diabetes infectious diseases, disorders of the central
nervous system and women's health care. In 1999, its revenues are expected
to exceed $12 billion and the company will invest more than $1.2 billion in
research and development. It employs more than 43,000 people worldwide.
Statements made in this press release that state "we will," "we
expect," or otherwise state the companies' predictions for the future are
forwarded-looking statements. Actual results might differ materially from
those projected in the forward-looking statements. Additional information
concerning factors that could cause actual results to materially differ
from those in the forward-looking statements is contained in each Company's
annual report on Form 10K-A for the year ended December 31, 1998 filed with
the U.S. Securities and Exchange Commission. For a copy of these filings,
call the media contacts listed on this press release.