Global New Employee Orientation Workshop

1. Global New Employee Orientation Workshop Welcome

2. On-going Networking and Social Events Job-specific Training On-the-job Experience and Training Intranet Orientation Site New Employee Orientation Workshop Receipt of Welcome Packet Job Offer and Acceptance Interviewing Recruiting

3. Workshop Agenda • Welcome • Participant Introductions • Document Completion • Benefits Information • A Pharmaceutical Company History Video

4. Workshop Agenda (continued) • Company Overview • Red Book and Asset Protection • Performance Management/Career Development • Workshop Summary • Wrap-up and Evaluation

5. Workshop Objectives To let you know: • What is expected of you • How to add value to the company • How to communicate with your colleagues • How to integrate as team players

6. Company Overview

7. A Pharmaceutical Company’s Global Presence Around the world, A Pharmaceutical Company: • Employs more than 31,000 people • Markets medicines in 179 countries • Has Research and Development facilities in 9 countries • Has Manufacturing facilities in 20 countries

8. Our Three Core Values Respect for people Integrity Thirst for excellence

9. Our Mission A Pharmaceutical Company is a research-based global company That Creates pharmaceutical-based health care solutions To Enable people to live longer, healthier, more active lives

10. Our Four Corporate Objectives People Scientific Innovation Demand Realization Shareholder Value

11. Our Organizational Structure Policy Committee Charter At the corporate level, approve and own: • Performance targets • Strategies • Policies Ensure compliance

12. Our Organizational Structure Policy Committee Activities: Manage corporate strategy Allocate resources Manage corporate assets Review investments Review organizational policies

13. Our Organizational Structure Operations Committee Charter Integrate strategies based on: • Product • Geography • Function Monitor corporate performance

14. Our Organizational Structure Operations Committee Charter Identify and discuss corporate: • Strategic issues • Operational issues • Opportunities Provide for organizational learning

15. Our Organizational Structure Operations Committee Activities: Review functional, product and geographic plans Align plans with corporate goals and targets Monitor corporate performance Debate strategic issues Review succession plans

16. Sales: $134 Billion U.S. In 1999 Global Pharmaceutical Market Europe, Middle East and Africa 31% North America 33% Asia and Pacific 5% Japan 23% Latin America 7% Australia 1%

17. External Factors Affecting the Industry Disease Focus Demographics Decision Maker/ Influencer Government/ Individual Spending

18. Internal Factors Affecting the Industry Cost Competition Regulation Product Risk

19. Global (R&D) spending was $24 billion U.S. in 1999 Pharmaceutical Research Spending • R&D as a percentage of sales was 18 percent • Much higher than other industries: • 6.4 percent in electronics • 3.9 percent in aerospace

20. Product Risk Average cost to develop one drug:$500 Million U.S. 10,000 Compounds 1,000 Show Promise 100 Are Tested To Market 1

21. Patent Protection 20 years Drug Discoveryand Development Launch Off Patent 15 years for R&D and Product Launch 5 Years to Recover R&D costs Generic Competition Product Life Cycle No Longer Manufactured

22. Hypothesis Generation Candidate Development Commercialization Projects Programs Products Drug Development Process

23. Hypothesis Generation Hypothesis Generation Activities Goal • Target identification and validation Testable,valuable hypothesis • Assay development • Lead generation Projects

24. Candidate Development Candidate Development Activities Goal • Lead optimization Proven or disproven hypothesis for given drug candidate • First human dose preparation • Phase IA clinical trials • Phase IB / II clinical trials

25. Successfulcommercialproduct Commercialization Commercialization Activities Goal • Phase III clinical trials • Submission to regulatory agencies • Global launch Products • Global optimization

26. Quality, Speed, Value • Quality: Working on the best opportunities • Speed: Develop drugs in half the time • Value: Double the products for every R&D dollar

27. Targeted Research Categories Cancer Cardiovascular Central Nervous System Endocrine Infectious Diseases

28. Current Products More muscle • Increase the sales force • Visit more decision makers more frequently • Publish more articles • Increase direct marketing New indications Novel delivery devices

29. Product Development New products • Depression • Cancer • Diabetes • Sepsis New combinations of existing products Product partnerships • Research • Launch

30. A Pharmaceutical Company’s Manufacturing Processes Bulk Manufacturing Raw pharmaceutical materials are made intoactive drug compounds.

31. A Pharmaceutical Company’s Manufacturing Processes Bulk Manufacturing • Compounds are processed • for storage and proper dosage. • This could include: • Mixing inert substances into compounds • Compressing dry compounds into tablets • Filling capsules with dry compounds • Filling vials with liquids • Freeze-drying liquids for longer storage Formulation and Filling

32. A Pharmaceutical Company’s Manufacturing Processes Bulk Manufacturing • Products are preparedfor distribution by: • Putting them in containers • Labeling the containers • Inserting patient instructions • Placing the containers in bulk packaging Formulation and Filling Finishing (packaging)

33. Introduction to Our Intranet The Company Intranet The Orientation Site links to: • Corporate policies and procedures • Employee benefits and services • Functional business components • A Pharmaceutical Company’s product portfolio • Pharmaceutical industry overview • Career development resources

34. Global New Employee Orientation Workshop Thank You