Mark Kessel Partner Symphony Capital LLC June 3, 2010 Business Development Key Ingredient for Success.

Mark KesselPartnerSymphony Capital LLC

June 3, 2010

Business DevelopmentKey Ingredient for Success

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Importance of Clinically Meaningful InnovationImportance of Clinically Meaningful Innovation

By 2020, Pay-for-Performance Will be the Norm in Many Countries

Source: PricewaterhouseCoopers Pharma 2020

- 3 -- 3 -

Shifting Regional Biopharmaceutical SalesShifting Regional Biopharmaceutical Sales

The Global Pharmaceutical Market by Region, 2008 & 2020

Source: PricewaterhouseCoopers Pharma 2020

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Growth of Development Programs WorldwideGrowth of Development Programs Worldwide

Source: PhRMA Pharmaceutical Profile, 2009

Number of Compounds in Development by Region

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More Unpartnered Products to Choose From More Unpartnered Products to Choose From

449

245

458

159

544

338

638

185

0

100

200

300

400

500

600

700

Preclinical Phase 1 Phase 2 Phase 3

2003 2007

Number of Unpartnered Products By Phase—2007 vs. 2003

Source: Oliver Wyman analysis; Goldman Sachs

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Acquisitions for GrowthAcquisitions for Growth

Number of Announced Transactions by Year: 2005 – 1H:2009

Source: Recap by Deloitte

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Acquisitions for Growth (continued)Acquisitions for Growth (continued)

0

0.5

1

1.5

2

2.5

3

3.5

Pfizer

Mer

ck

Sanof

i-Ave

ntis

GlaxoS

mith

Kline

Novarti

s

Roche

AstraZ

eneca

John

son

& John

son

Eli Lilly

Bristo

l Mye

rs S

quibb

0

1

2

3

4

5

6

7

Dollars Number of Transactions

Large Pharma M&A: 2007 – 2009YTD

$ Billions Number of Acquisitions

Source: Business Insights Ltd., The Evolving Pharma M&A Landscape (2009)

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In-Licensing for GrowthIn-Licensing for Growth

Top Licensees: 2005 – Q3:2009

Source: Recap by Deloitte

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In-Licensing for Growth (continued)In-Licensing for Growth (continued)

Source: Recap by Deloitte

1,419

Alliances from 2005 – Q3:2009

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Approaches to Address Key ChallengesApproaches to Address Key Challenges

• Accessing cutting edge science from academic institutions

• Accessing early programs through venture capital arms

• Accessing platforms and enabling technologies

• Licensing pre-clinical and clinical programs

• Accelerating pipeline development

• Acquiring revenues and pipeline

• P&L enhancement strategies

• Out license compounds for developing markets

• Acquire compounds for Europe and developing markets

• Combining development and commercial efforts

• Avoiding over-paying by using earn out acquisitions

• Partnering pre-partnered drugs with Large Pharma not an impediment

• Hostile takeovers

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Becoming the Partner of Choice:An Outsider’s ViewBecoming the Partner of Choice:An Outsider’s View

• Combine the best of biotech with Large Pharma’s attributes

• Clear mandate from the top to become the partner of choice

• Ability to move quickly

• Creative approach to deal making

• Avoid “risk avoidance”

• Candor in dealing with collaborators

• Create win/win deals

• True collaboration and not big gorilla in the room environment

• Consider creative models to enhance success rate

THANK YOU