EXHIBIT 99.1
AMERICANWARNER, INC.
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Industry Leading
R&D Capabilities
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SUBSTANTIAL VALUE CREATION
Opportunity for significant multiple expansion
-- Significant new product growth - over 20 launches (1999-2002)
-- Broadest platforms in industry (e.g., proteins, vaccines, small
molecules)
-- Broadest technology capabilities (e.g., combinatorial chemistry,
structure-based drug design, and high-throughput screening)
-- Leadership in OTC
-- Significant synergy and strategic opportunities
- Revenue acceleration
- Cost synergies
- Strategic options
-- Substantial momentum-based on "best-of-the-best" merger philosophy
Leadership growth rates
AMERICANWARNER R&D - MANAGEMENT PHILOSOPHY
-- Unified overarching strategy
-- Single portfolio management process
-- Single resource allocation system
-- Clear implementation of project metrics
-- Elimination of silos
-- Incentives for collaboration
Flexible, nimble organization to maximize opportunities for innovation
and entrepreneurism
A COMMANDING R&D PRESENCE
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Powerful discovery platforms
-- Small molecules
-- Proteins
-- Vaccines
Over 20 sites across North America, Europe, and Asia
R&D activity across all 7 major therapeutic areas
Over $3.0 billion in Pharma R&D spend (2000E)
Approx. 100 compounds in development
Over 11,000 R&D personnel (2000E)
CREATING VALUE IN AMERICANWARNER R&D
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Highly complementary activity in at least 4 key therapeutic areas
Broadest technology platforms/capabilities in industry
Focused and empowering management philosophy
World-class partnerships/collaborations
Deep presence in innovative biopharmaceuticals
Bringing the two companies together unlocks full potential of R&D
organizations
LEVERAGING TECHNOLOGY PLATFORMS/CAPABILITIES - EXAMPLES
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Small molecule mimetics for proteins (e.g., Factor VIII)
Small molecules
HTS/informatics
Protein therapeutics
Combinational chemistry
Genomics
Structure-based drug design
Therapeutic vaccines (e.g., conjugate and DNA vaccines for cancer viral
diseases)
Gene therapy
Vaccines
Protein therapeutics
LEADING-EDGE BIOTECH CAPABILITIES
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Agouron
-- Structure-based drug design/novel treatments for cancer, AIDS, and
other serious diseases
-- Leading HIV protease inhibitor (VIRACEPT)
-- Key pipeline programs: Prinomastat, Remune, Rhinovirus, nnRTI
Genetics Institute
-- Recombinant DNA and genomics technologies/focus on hemophilia,
tissue repair, immunology, and cancer
-- Key products: BENEFIX (hemophilia B), REFACTO (hemophilia),
NEUMEGA (thrombocytopenia), and BMP
Immunex
-- Immunological approaches to inflammation and oncology (e.g., flt-3)
-- Key products include market-leading TNF inhibitor (ENBREL) and
LEUKINE
-- Development focus on cancer, asthma, rheumatoid arthritis,
inflammation, and CV
A biotech powerhouse stronger than any other in the industry
THERAPEUTIC AREA COMPLEMENTARITY
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Major opportunities for upside synergies
-- CNA
-- Oncology
-- Anti-infectives
-- Cardiovascular
Additional opportunities for upside synergies
-- Diabetes
-- Women's health
-- Immunology/inflammation
-- Vaccines
Other key areas of participation
-- Ophthalmology
-- Gastrointestinal
-- Tissue repair
-- Hematology
Multiple opportunities for establishing/enhancing world-class positions
in major therapeutic areas
DOMINATING PRESENCE IN CNS COMBINING AHP PSYCHIATRIC AND
W-L NEUROLOGICAL APPROACHES
Warner-Lambert AHP Partners
Pain --Pregabalin --Minalrestat Opportunity
--NEURONTIN --EFFEXOR for new
combinations combination
(3) therapies
--NK1 receptor
antagonist
--Zenarestat
Sleep --Potential role of --SONATA Expansion of
gabapentinoids --Benzodiazepine current AHP
receptors presence
Anxiety/ --Pregabalin
depression --Igmesine --SSRI/5HT1a --CoCenSys Unique product
--Potential (Neurosteroids) positioning/
combinations -Millennium combination
with opportunities
EFFEXOR
Epilepsy/ --NMDA receptor --GKE-841 --Neurogen Optimize
Parkinson's antagonist (novel --CoCenSys approaches
--Pregabalin antiepileptic) --ASTA going
Medica forward
Basic research --Schizophrenia --Estrogen --Millennium Build
--Amyloid and therapies --Sequana/Axys capabilities
pathogenesis for --Neurocrine in chronic
--NK/dopamine Alzheimer's BioSciences neuro-
receptor --Neuro- degenerative
antagonists degenerative diseases
research
--Glutamate
transporters
--Serotonin
receptors
LEADERSHIP IN NEW BIOLOGICAL APPROACHES TO ONCOLOGY
Warner-Lambert AHP Partners
Cell cycle --W-L/Agouron --CCI --Onyx Industry leader
inhibition expertise (rapamycin in cell cycle
(cytostatics)- analog) regulation
--Discovery
research
Signal --MEK-1 --EKI-EGF --Genentech Novel
transduction --EGF receptor receptor applications of
kinase kinase genomics
--TRAIL
--ERA-923
Anti --Late-stage --Early stage Opportunity to
angio-genesis MMP MMPIs optimize
(prinomastat) MMP programs
Biologicals --Gene-therapy --Immunotherap --Onyx Unique
capabilities eutics (gene opportunities
--Onyx-015 (Immunex) delivery for novel
--flt-3 ligand vectors) therapeutics
(Mobist)
--IL-11
(Neumega)
Cytotoxics --Novel --Antibody New horizons in
cytotoxics conjugates cytotoxics
- CI-1006 (calicheamicin
- GART platform)
inhibitor --CYA-246
(cytokine
inducer)
EXAMPLES OF CURRENT BIOTECH ALLIANCES PARTIAL LISTING
* Example areas of
upside synergy
Warner-Lambert American Home Products
Affymetrix* Lexicon Genetics Affymetrix* Imclone
Allergan Ligand* AlphaVax Millennium*
Amersham* Metabolex* Aquila NanoSystems
Aurora NanoSystems ArQule* Neurocrine
Biosciences* Biosciences*
BASF Onyx* Aviron Neurogen
Berlex Peptide Bactex Q-One Biotech
Therapeutics
CoCenSys* Sanger Centre* BioDelivery Research Corp
Sciences Technologies
Compugen* Sciemagix Biogen RIBI Immunochem
Research/Corixa
GenVec Sequana Biostar Sibia
(AxyS)* Biosciences
Genzyme SynPhar Cambridge SIGA
Antibody
Technologies*
IRJ/Meristem* Third Wave CellTech
Technology
LeukoSite* Trega CoCenSys*
Unigene Genset SA
Xenova Icelandic
Biopharmaceutical
Group
World class roster of partnerships
UPSIDE SYNERGIES THROUGH ALLIANCES EXAMPLES
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ARQULE
AXYS
ALANEX
Complementary combinatorial chemistry capabilities
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AFFYMETRIX
COMPUGEN
MILLENNIUM/NETGENICS
Complementary bioinformatics and chip design capabilities
Multiple opportunities to leverage complementary alliances to build upon
industry leading basic discovery capabilities
--Combinatorial chemistry --Structural biology
--Genomics --Informatics
--High-throughput screening
INNOVATIVE APPROACHES FOR PREVENTION AND TREATMENT OF INFECTIOUS
DISEASES
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Warner-Lambert AHP Partners
Respiratory --Rhinovirus --Vaccines --Aviron Leadership
(Agouron) - PREVNAR positions in
- AG-7088 - FLUMIST respiratory
- Oral - MENINGITEC infections,
rhinovirus - Respiratory vaccines
syncytial
virus(RSV)
- Parainfluenza
virus (PIV)
HIV --Protease --Apollon naked --Immune Complementary
inhibitors in DNA vaccines Response novel
development and --Immunex flt-3 Corporation therapeutics
marketed (Mobist) for HIV (e.g.
(VIRACEPT) --IL-12 and vaccines)
--Remune other
--nnRTIs in adjuvants
development
and marketed
(RESCRIPTOR)
Anti bacterials --Target --GAR - --Millennium Synergistic drug
discovery tetracycline for (basic discovery
for novel, broad resistant genomics) platforms
spectrum strains
compounds --Natural
(functional products
genomics) screening
Other --Discovery --Small molecules Broad spectrum
viral programs (e.g., (e.g., RSV) of activity in
diseases HCV) --Vaccines (e.g., anti-virals
HSV)
EXPANDING LEADERSHIP ACROSS MAJOR CV DISEASE AREAS
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Warner-Lambert AHP Partners
Risk Factors/ -- Dyslipidemia - Estrogen - Ligand Exploit cardio
endothelial expertise receptor protective
dysfunction/ - LIPITOR fran- expertise effects of
chronic CAD chise - SERMs estrogens/statins
(combinations) - PREMARIN
- CI-1027 family
HDL elevator
- Avasimibe
Thrombosis/ - Factor Xa - PSGL-1 (P- - Berlex/ Establish
acute inhibitors selectin) Schering strong
coronary (oral and - ENBREL AG acute CAD
syndrome IV) Factor VIIa - Cordorone presence
inhibitors follow-
- Adeno on
VEGF/BIOBypass
CHF - ACCUPRIL - ENBREL - Yama- Build robust
franchise - V2 antagonist nouchi CHF
- Conivaptan pipeline
(VI/V2
antagonist)
- Endothelin
antagonist
ADDITIONAL OPPORTUNITIES FOR UPSIDE SYNERGIES
EXAMPLES
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Women's health Diabetes Immunology/ Vaccines
inflammation
- --Estrogen --Complementary --MMPIs --New vaccine Upside in
modulation treatment of - W-L/ applications several
- W-L/ NIDDM Agouron - Oncology additional
Ligand - 3rd expertise - Anti- areas
collabora- generation - AHP/Immu- infectives
tion (3rd glitazone CI- nex - Athero-
generation 1037 expertise sclerosis
SERM) - PTP in inflam- (chlamydia)
- AHP Phsphatase mation - Basic research
experience inhibitor (patented in adjuvants
with - Zenarestat / class of
SERMs Minalrestat MMPs)
/ER-beta --RAPAMUNE
--ENBREL
--Anti IL-12
--VLA 4
inhibitor
(VLO-279)
OTHER KEY AREAS OF PARTICIPATION EXAMPLES
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Ophthalmology Gastrointestinal Tissue repair Hematology
- --W-L (AG- --AHP --AHP (rh BMP- --AHP Presence in
3340) - Protonix, 2) - REFACTO several other
- Age-related Zoton - Tendon - BENEFIX key
mascular (proton repair (hemophilia therapeutic
degenera- pump - Articular B) areas
tion inhibitors) cartilage - REFACTO+
- Diabetic --W-L repair
retinopathy - PD-183927 - Spine
(anti- - Ortho trauma
diarrheal) - Oral
- PD-254320 maxillo-
(gastric facial
lipase)
IMPACT OF VALUE CREATION LEVERS
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Highly Broadest technology - Novel innovation
complementary platforms/capabilities opportunities
activity in at in industry given
least 4 complementary
key therapeutic Focused and platforms
areas empowering - Greater
management development
philosophy efficiency
- Higher commercial
value of products
- Access to broad
Deep presence in web of discovery/
innovative development
World-class biopharmaceuticals houses
partnerships - Fundamentally
/collaborations higher NCE output
R&D EXPENDITURES AND PIPELINE
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1998 R&D Number of products in Pipeline
Rank Corporation Spend Total Ph. II PH. III Pre-Mkt
1 Aventis 2,529 171 27 13 12
2 Novartis 1,922 110 23 15 4
3 Glaxo 2,011 151 17 9 6
Wellcome
4 AstraZeneca 2,022 98 23 4 4
5 Merck 1,821 128 11 5 2
6 BMS 1,340 91 14 8 7
7 Pfizer 2,000 85 13 6 4
8 J&J 1,350 70 12 12 7
9 Roche 2,020 124 22 17 3
10 American 1,393 159 20 11 7
Home
Products
15 Warner- 910* 120 17 5 1
Lambert
* Excludes Agouron
Source: IMS 1998 Review
PHARMACEUTICALS: NEAR-TERM PIPELINE *Warner-Lambert
+AHP
[chart containing the following information:]
ESTIMATED LAUNCH DATES
1999 2000 2001 2002
femhrt* - HRT for Lipitor* (Japan)- Pregabalin* - Zenarestat*
osteoporosis HMG CoA reductase Gabapentanoid/anti- - aldose
$100-200 inhibitor for convulsant for reductase
million cholesterol neuropathic pain, inhibitor for
reduction epilepsy (2002), diagetic neuropathy
$800-1,000 million and $400-500 million
anxiety disorders
(2000) $1,000-2,000
million
Refacto+ advanced Relpax* Migraine AG-3340*- MMPI for Igmesine* - anti-
recombinant Factor therapy prostate and non- depressant $500-800
VIII formulation (co-promotion small-cell lung million
for with Pfizer) $300- cancer
hemophilia $300-800 1,000 million) $800-1,000 million
million
Sonata+ - for Trimegestone+ - new AG-1549* - nnRTI Remune* - immuno-
insomnia progestin $400-500 for therapy for
$400-600 million million HIV/AIDS $250-300 HIV/AIDS
million $500-700 million
Rapamune+ - immuno- Protonix+ - proton Flu-Mist+ - AG-7088* -
suppressant for pump inhibitor for vaccine for rhinovirus
organ ulcers $250-500 influenza $450-600 (nasal) $500-1,000
transplants $900+ million million million
million
Meningitec+ - for Prevnar+ - vaccine CMA-676+ - Conivaptan* -
immunization for cytotoxic vasopressin
against 7 most common immunoconjugate for antagonist
meningitis $200 strains AML $100-200 $200-500 million
million of pneumococci million
$500-
1,000 million
Recombinant Human CCI-779+
Bone Morphogenic Cytostatic
Protein 2+ - for for solid tumors
bone repair $500- $200-300 million
1,000 million
Low-dose PremPro+ -
Osteoporosis/
menopause $300-600
million
Approved/Approvable
Note: Figures are peak year sales estimates from analyst reports
THE AMERICANWARNER COMBINATION:
LEADERSHIP GROWTH RATES WITH FURTHER UPSIDE
$ Billions
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CAGR
(1999-2002)
1999E 2000E 2001E 2002E Percent
------------- ------------ ------------- --------- ------------
Revenue $26.3 bn $29.7 bn $32.8 bn $36.1 bn 11%
- - Pharma 17.2 19.7 22.0 24.5 13%
- - Consumer 4.4 4.9 5.3 5.7 9%
Net income 3.9 4.8 5.7 6.8 20%
EPS 1.48 1.79 2.15 2.55 20%
20% net income growth with $1.2 billion A 1% increase in Pharma and Consumer
in cost synergies revenues will increase net income
growth rate by approx. 1%
REVENUE SYNERGY DRIVERS - TOP MARKET PRESENCE
-- High profile sales identities (e.g., Wyeth-Ayerst, Lederle, Genetics
Institute, Immunex, Parke-Davis, Warner-Lambert, Sankyo-Parke Davis,
Agouron)
-- Combined global sales force of ~ 14,500
-- Combined U.S. sales force of ~ 6,500
Significant upside from complementary capabilities
AMERICANWARNER REVENUE SYNERGY UPSIDES
2000
--LIPITOR (Japan) - Faster launch; 2 distribution channels
--ACCUPRIL - Increased sales force to drive sales
--SONATA - Increased sales force to drive sales
--EFFEXOR - Increased sales force to drive sales
--PROTONIX - Launch U.S.
2001
- --Pregabalin broad launch
- Epilepsy
- Pain
- Psychiatry
- --AG-3340 (Prinomastat) - broader and deeper oncology launch
- --Gabapentin generic through AHP
2002
- --Zenarestat launch
- --Igmesine launch
ILLUSTRATIVE VALUE CREATION
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NEAR TERM
($200 million in 2000E Cost Synergies)
Market Capitalization
---------------------------------------------------------
AmericanWarner
illustrative
American Warner- American value
2000 P/E Home Lambert Warner creation
------- ---------- ----------- ----------- --------------
Pre-WSJ Article 29.6x $67 $69 $136 NA
Day of WSJ Article 32.3x 74 75 149 $13
2000 P/E Range 33.0x $157 $21
35.0 166 30
37.0 176 40
39.0 185 49
LONG TERM
($1.2 billion in 2002E Cost Synergies)
Market Capitalization
---------------------------------------------------------
AmericanWarner
illustrative
American Warner- American value
2000 P/E Home Lambert Warner creation
------- ---------- ---------- ----------- -------------
Pre-WSJ Article 29.6x $67 $69 $136 NA
Day of WSJ Article 33.0x $226 $90
2000 P/E Range 35.0 240 104
37.0 254 118
39.0 268 132
AMERICANWARNER WOULD COMMAND A STRONG MARKET PRESENCE
- --#1 company in pharmaceutical sales
-Diversified product portfolio (i.e., less dependence on LIPITOR)
-Full late-stage and early-stage pipeline
-Superior technology platforms including vaccines, recombinant proteins,
hormone therapeutics and gene therapy
-Broad therapeutic area presence (e.g., women's health, cardiovascular,
oncology, inflammation, CNS)
- --#1 company in OTC sales
-Category leadership (e.g., nutritionals, cough/cold)
-Enhanced global reach