Transcript Follow-up to the Millennium case

Millennium Pharmaceuticals,
Inc.
What happened next?
Should they do the deal?
Yes, because:
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Long-term revenues ($220 MM plus)
Firm growth (1000 to 1300 employees)
Further commitment to agribusinesss
Software development and documentation
Should they do the deal?
No, because:
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1000 employee threshold
Already spread thin
Agribusiness is not the long term goal
Lundberg’s lack of preparation raises
commitment and understanding concerns
Should they do the deal?
Did they do the deal?
No, they did not.
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Review of the Millennium website indicates
that they have not done any agribusiness
deals since Monsanto.
Millennium –strategic direction
Speed drug development through
technology
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Serial steps in parallel
“Front load” the discovery process
Strategic alliances
Become an integrated pharmaceutical
firm
How have they done?
Speed the process
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According to an article from TheStreet.com
(July 17, 2002), to date, Millennium has
only one internally developed drug, an
experimental metabolic drug in early Phase
I testing, in clinical trials.
How have they done?
Strategic alliances
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Since the Bayer deal, Millennium has
successfully completed eight (8) major
strategic alliances.
 These alliances have covered a variety of
strategic areas, to help Millennium internalize
new skills.
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In addition to the alliances, they have
completed at least one major acquisition,
Cor Therapeutics.
How have they done?
Become an integrated pharmaceutical
firm:
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Simply put – they have not. Their current
revenue leading drug – Integrilin – came
as part of the Cor Therapeutics acquisition
and is marketed in conjunction with
Schering-Plough.
How have they done financially?
Market cap of ~$3 Billion
2002 expected sales of $300 Million
Second quarter loss (excluding charges
and gains) $0.16 / share vs. $0.19
(analyst expected)
Drug pipeline – “Viable and growing”
TheStreet.com July 17, 2002
How have they done financially?
Core Competencies(then & now)
Platform
Productivity Innitiative
Mergers and Alliances
Franchise Areas
People
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Source Millennium.com July 31, 2002