Transcript Bear Stearns Healthcare Conference - Corporate-ir

Bear Stearns Healthcare
Conference
Robert Essner
Chairman, President and Chief
Executive Officer
September 14, 2004
Forward-Looking Statement
The statements in this presentation that are not historical facts are forwardlooking statements based on current expectations of future events that
involve risks and uncertainties including, without limitation, risks
associated with the inherent uncertainty of pharmaceutical research,
product development, manufacturing, commercialization, economic
conditions including interest and currency exchange rate fluctuations, the
impact of competitive or generic products, product liability and other types
of lawsuits, the impact of legislative and regulatory compliance and
obtaining approvals, and patent, and other risks and uncertainties,
including those detailed from time to time in Wyeth’s periodic reports,
including quarterly reports on Form 10-Q and the annual report on Form 10K, filed with the Securities and Exchange Commission. Quarterly results, in
particular, can vary due to issues which include, but are not limited to,
changes in exchange rates, the timing of actions taken by the Company to
ensure long-term improvements to our manufacturing processes, the
timing of regulatory approval of new products and/or facilities and the
timing of promotional programs. Actual results may vary materially from
the forward-looking statements. The Company assumes no obligation to
publicly update any forward-looking statements, whether as a result of new
information, future events or otherwise.
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Wyeth Delivering Strong Growth
in 1st Half 2004
Revenues
+11%
Human Pharmaceuticals
+11%
Consumer Health
Animal Health
+9%
+16%
SG&A
+5%
R&D*
+10%
EPS*
+5%
* Excluding Impact of Certain Significant Items
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A reconciliation of reported net income and diluted EPS as reported under GAAP to net income and diluted EPS
before certain significant items is available in Wyeth’s 2nd quarter earnings release found at www.wyeth.com.
Focus on Growth Opportunities:
Five “Billion Dollar” Franchises in 2004
®
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Focus on Growth Opportunities: Near-Term
Strong and Growing Product Line

U.S. Antidepressant Market Growth
Slowed
 Comparison to Increased Utilization
Following 9/11
 Recent Negative Publicity Regarding
Suicidality in Adolescents

International Growth Continues to be
Strong
 Effexor is #1 Selling Antidepressant in
International Markets

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Expect the Category to Rebound and
Effexor to Grow Faster Than the
Category Overall
Focus on Growth Opportunities: Near-Term
Strong and Growing Product Line

Will Be a Market Leader in Biologic
Therapy for All Indications
 Ankylosing Spondylitis – Approved
 Psoriatic Arthritis – Approved
 Psoriasis – Approved U.S., EU Year-end
- New and Total Prescription Volume in
Dermatology Up Sharply in 2nd Quarter
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On Target to Achieve 2004 Revenue
Near the High-end of Guidance Range
for North America
Sales Outside of North America to
More Than Double
Focus on Growth Opportunities: Near-Term
Strong and Growing Product Line

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Remains One of the Fastest Growing
Brands in the Highly Competitive PPI
Marketplace
Protonix Has Continued Strong
Growth Despite the Launch of Prilosec
OTC and generic omeprazole
Continues to Maintain the Highest
Overall Managed-care Formulary
Access and Reimbursement of the PPI
Class
Focus on Growth Opportunities: Near-Term
Strong and Growing Product Line

Major Improvements in Prevnar
Manufacturing Capabilities
 Contract Vial Filling Now Online
 Pre-filled Syringes Projected for 2005

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®
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Global Demand for Prevnar Remains
Strong – Recognizing Public Health
Impact
CDC Returned to 3-dose Series in July
EMEA Returned to 4-dose Series in
August
Focus on Growth Opportunities: Near-Term
Strong and Growing Product Line
®
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
Continue to Support the Appropriate
Use of Hormone Therapy for Indicated
Uses

Lower Doses Provide Clinicians with
New Treatment Options

Low Dose DTC Campaign Underway
Challenges Facing Today’s Pharmaceutical
Industry
10
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Political Issues

Structural Issues

Litigation
Wyeth R&D: Focus on Innovation
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
Create an Environment Within R&D That Supports,
Sustains and Recognizes Scientific Innovation

Create a System That Does Not Screen Out Innovation,
Even When Its Potential Is Hard to Understand Early on

Develop an Organization With the Ability to Continually
Adapt to Follow Where the Science Leads
Innovative Early R&D Programs

Alzheimer’s Disease Programs
Immunotherapeutic Approaches / Small Molecule for Symptomatic
Treatment

Oncology Platforms
Three Oncology R&D Strategies
- Cell Cycle Inhibitors
- Cell Signaling Pathway Inhibitors
- Antibody-Targeted Chemotherapy

Inflammation Programs
Small Molecule Inhibition of TNF-alpha
cPLA Inhibitors for Inflammation, Pain, Asthma
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Wyeth’s Strong Phase 3 Pipeline
New Molecular Entities
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Tygacil™ - New Broad-spectrum Antibiotic for Empiric Treatment of
Serious Infections
Bazedoxifene/Bazedoxifene/CE – New Selective Estrogen Receptor
Modulator and Combination for Osteoporosis and Vasomotor Symptoms
DVS-233 – New SNRI for Depression and Non-hormonal Treatment of
Vasomotor Symptoms
Temsirolimus – Novel mTOR Inhibitor Approach Effective in Multiple
Tumor Types
Bifeprunox – Novel Treatment for Schizophrenia with Improved Safety
Profile
Tanaproget – First Nonsteroidal Oral Contraceptive
Life Cycle Management Programs
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Librel™ - New Oral Contraceptive To Eliminate Cycling and Premenstrual
Dysphoric Disorder
Other Important Life Cycle Programs Ongoing
Next Wave of Filings: 2004-2006
2006
DVS-233 Depression
Bifeprunox
Tanaproget
2005
2004
Tygacil™
Effexor® XR Panic
BMP-2 Posterolateral
Spine
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DVS-233 Vasomotor
Symptoms
Bazedoxifene
Osteoporosis
Prevention
Temsirolimus Renal
Cell Cancer
Librel®
Temsirolimus Mantle
Cell Lymphoma
Rapamune® Renal (Life
Cycle Programs)
Temsirolimus
Breast Cancer
Rapamune ® Liver
ReFacto® AF
Leading to Significant New Product
Opportunities to Support Growth at Wyeth
Projected Launches 2004-2007
Bifeprunox
Enbrel
(psoriasis)*
Tygacil
2004
2005
Bazedoxifene
DVS-233 (dep)
Temsirolimus
Tanaproget
Librel
DVS-233 (vaso)
>$1 Billion Peak Year Sales Potential
>$500 Million Peak Year Sales Potential
* Launched U.S. 2Q04
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2006
2007
Diet Drug Litigation
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Diet Drug Litigation
Initial Opt Out Cases

The Company Has Resolved the Claims of All but a
Small Percentage of the Initial Opt Outs
Downstream Opt Out Cases

Will Continue to Defend Wyeth Aggressively and Bring
Cases to Trial
 Continue to Challenge Many of the Downstream Opt Out Cases That
Appear Medically Deficient
 Some Early Successes in the Philadelphia and New Jersey Courts
 Recent Ruling by Judge Bartle on Bifurcated Trials
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Diet Drug Litigation
PPH Cases

As of July 19, 2004, Wyeth Has Been Named in ~350
Lawsuits Where the Plaintiff Alleges a Claim of PPH
~75 Cases Appear Eligible to Pursue a PPH Lawsuit Under the
Terms of the National Settlement
~95 Expect to be Dismissed
~180 Insufficient Information
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Appeal of Cappel - Texas Verdict Underway
Wyeth 10-Q filed August 9, 2004
Diet Drug Litigation
Seventh Amendment to National Settlement
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Preliminary Approval Received Last Month
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Designed to Resolve Matrix Level 1 and 2 Claims As
Well as Future Matrix Claims
Wyeth Is A Company That Has Built Itself
Around Innovation
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A Strong Line of Growing Products on the Market
Supported by a Dynamic and Competitive Commercial Organization

Outstanding Near-term Pipeline With Significant
Commercial Potential
Backed by a Research Organization of Remarkable Productivity
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Wyeth Has the Flexibility and Creativity to Take the
Right Product and Make It Successful in Virtually Any
Category Anywhere in the World