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wyeth Citi Investment Research Global Healthcare Conference


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wyeth Citi Investment Research Global Healthcare Conference

  1. 1. 2008 Citi Investment Research Global Healthcare Conference Greg Norden Senior Vice President and Chief Financial Officer May 21, 2008
  2. 2. Forward-Looking Statement The statements in this presentation that are not historical facts are forward- looking statements based on current expectations of future events and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. These risks and uncertainties include risks associated with the inherent uncertainty of the timing and success of product research, development and commercialization (including with respect to the NDA filings for Wyeth’s pipeline products referenced in this presentation), drug pricing and payment for Wyeth’s products by government and third-party payers, manufacturing, data generated on the safety and efficacy of Wyeth’s products, the impact of competitive or generic products, trade buying patterns, global business operations, product liability and other types of litigation, the impact of legislation and regulatory compliance, intellectual property rights, strategic relationships with third parties, environmental liabilities, and other risks and uncertainties, including those detailed from time to time in Wyeth’s periodic reports filed with the Securities and Exchange Commission, including Wyeth’s current reports on Form 8-K, quarterly reports on Form 10-Q and annual reports on Form 10-K, particularly the discussion in Wyeth’s annual report on Form 10-K under the caption quot;Item 1A, Risk Factors.quot; Wyeth assumes no obligation to publicly update any forward-looking statements, whether as a result of new information, future developments or otherwise. 2
  3. 3. 2008 Guidance* Pro Forma EPS $3.35 to $3.49 (-1% to -5%) n Revenue Comparable to 2007 n Gross Margin 72% to 74% n SG&A Down 2% (Excluding Any Impact from Foreign n Exchange) R&D Up Slightly n Tax Rate 29% to 31% n Taking Aggressive Measures to Mitigate the Impact of the Loss of Protonix to the Extent Possible * Excludes Certain Significant Items 3
  4. 4. Wyeth 1Q 2008: Solid Performance Despite Impact from “At-Risk” Generic Protonix Launches Net Revenue ($B) Operating Profit ($B) Earnings Per Share* +0% +6% $6 $2.0 $1.00 +7% $5 $1.5 $4 $5.7B $1.8B $.94 $3 $1.0 $0.50 $5.4B $1.7B $.94 $2 $0.5 $1 $0 $0.0 $0.00 1Q07 1Q08 1Q07 1Q08 1Q07 1Q08 * As Adjusted, Before Certain Significant Items 4
  5. 5. Results by Division: 1Q 2008 Worldwide Net Revenue Increased 6% to $5.7 Billion for the 2008 First Quarter 10%* Pharmaceuticals 6%* $4,758.8M Animal Health $276.6M 0%* Consumer Healthcare $675.2M * Represents percentage increase in 2008 First Quarter Net Revenue compared with 2007 1Q 5
  6. 6. Key Product Performance: 1Q 2008 36% 22% 19% 15% 14% $1,021M $706M $606M (66)% $411M $342M $159M Represents 2008 First Quarter Net Revenue and percentage increase (decrease) compared with 2007 1Q; amounts presented for Enbrel represent Net Revenue outside the U.S. and Canada, where Wyeth has exclusive rights 6
  7. 7. Wyeth Pharmaceutical Success Imperatives Drive Growth in Products and Regions 1. Successfully Introduce New Products 2. Sharpen Focus - Manage Costs – Define Path 3. 7
  8. 8. Wyeth Pharmaceutical Success Imperatives Drive Growth in Products and Regions 1. Successfully Introduce New Products 2. Sharpen Focus - Manage Costs – Define Path 3. 8
  9. 9. Focus On Growth Drivers: Strong and Growing Product Lines 2007 Revenue: $2.4 Billion (+24%) Expect Mid-Teens Growth in 2008 ® 2007 Revenue: $2 Billion Int’l. (+36%) International Revenue Expected to Exceed $2.5 Billion in 2008 … $3 Billion Target in 2010 2007 Revenue: $1.4 Billion (+20%) Expect 2008 Growth to Be Similar to Last Year 9
  10. 10. Focus On Growth Drivers: Strong Contributors to Revenue 2007 Revenue: $3.8 Billion (+2%) Expect 2008 Sales to Be Comparable to 2007 2007 Revenue: $1.1 Billion (+17%) Expect International Generic Competition and Possible Generic Competition in the U.S. 2007 Revenue: $1.1 Billion (+0%) Progress Continues in Clarifying the Benefit/Risk Profile of Hormone Therapy 10
  11. 11. Focus On Growth Drivers: Strong Contributors to Revenue 2007 Revenue: $705 Million (+7%) 2007 Revenue: $684 Million (+10%) 2007 Revenue: $1,042 Million (+11%) 11
  12. 12. Focus On Growth Drivers: Other Solid Contributors to Revenue Hemophilia Franchise Grew 16% in 2007 Franchise Is on Track to Reach $1B in 2009 2007 Revenue: $359 Million (+17%) BMP-2 2007 Revenue: $365 Million (+8%) 12
  13. 13. Drive Growth in Regions Wyeth’s Growing International Presence Evolution of Sales 2000 2007 24% 31% 61% Revenue 52% 10% 12% 5% 6% $13.1B $22.5B US EMEA/C APAC LA 13
  14. 14. Increasing Contribution & Accelerating Growth In Emerging Markets for Pharma Industry Turkey/MENA Western Europe Japan ROW $13B China +16% $31B $58B $167B $14B +11% +5% +6% +26% Select Mexico Emerging Markets $7B $62B +8% India +16% North America $7B $295B Korea +13% Korea +4% $8B $8B +14% Brazil +14% Russia $8B $5B +10% +19% 2007 Global Rx Market: $612B (+6%) 2007 IMS Health (Rx Market), Russia sales based on 3Q MAT 2007. MENA Countries include: IMS data for Saudi Arabia, S. Africa, UAE, Kuwait. The value is under-represented given several 14 countries are not included in the audit.
  15. 15. One Example of Wyeth’s Expansion Into Accelerated Growth Markets Wyeth Nutritionals - Geographic Expansion in China Before Expansion 2008 Coverage 180 45 COVERED COVERED CITIES CITIES Currently Covered City City Expansion 15
  16. 16. Wyeth Pharmaceutical Success Imperatives Drive Growth in Products and Regions 1. Successfully Introduce New Products 2. Sharpen Focus - Manage Costs – Define Path 3. 16
  17. 17. Successfully Introduce New Products Continued and Projected 2008 Launches cSSSI and cIAI Community Acquired Pneumonia Renal Cell Carcinoma Depression Hemophilia A Opioid Induced Constipation Flea and Tick Protection for Dogs and Flea Protection for Cats 17
  18. 18. The Wyeth Development Pipeline Continues to Grow in Breadth, Depth and Innovation Phase 0 Phase 1 Phase 2 Phase 3 Registration HCV-796 Aprela™ - Osteo. & Lybrel® - GSI-136 PAZ-417 SAM-531 Vaso. Symptoms NSA-789 Contraception (EU) AGG-523 Tygacil® - Diabetic Relistor™ - Oral BLI-489 Pristiq™ - MDD (EU) SRA-444 (Methlynaltrexone) Foot Ulcer MMS-255 Viviant™ - Osteo. HKI-357 Moxidectin Bosutinib - CML HSD-016 Prev. &Treat. GAP-134 Bosutinib - Breast PDE-551 Pristiq™ - VMS (SKI-606) PRA-027 Pristiq™ - (SKI-606) Tygacil® - CAP ILS-920 MnB - Infant Vabicaserin Fibromyalgia Torisel® - MCL (EU) NRI-992 ILV-094 – RA (SCA-136) Pristiq™ - ReFacto® AF (EU) ACC-002 ILV-094 - Neratinib - Breast Neuropathic Pain Staph Aureus Psoriasis (HKI-272) Relistor™ - IV - POI BLD-089 TRU-015 –Onc. Tygacil® - HAP (Methylnaltrexone) AAB-002 AAB-001 – SC MnB – Adolescent Lybrel® - PMDD SBI-087 IMA-026 ACC-001 Protonix® - Oral Ped TRU-015 - TRU-015 - RA Rapamune® - Liver Lupus Anrukinzumab 13vPnC - Infant ILV-095 (IMA-638) 13vPnC - Adult RAS-111 BMP-2 Inject. Bapineuzumab - AD BMP-655 Inotuzumab - NHL BMP-2 – (CMC-544) Fracture Prevent Small Molecules ATR-107 Vaccines Proteins Phase 0 Phase 1 Phase 2 Phase 3 Registration 19 12 13 13 8 May 2008 18
  19. 19. Prevnar 13v – Expanding the Coverage Infant Adult • Provide Broadest • Provide First and Only Coverage Available for the Conjugate Vaccine That Offers Global Protection of Adults, >50, an Opportunity to Children Against Prevent Pneumococcal Opportunity Pneumococcal Disease Pneumonia for the Rest of Their Lives • • Phase 2 Proof of Concept Proof of Concept Achieved Achieved • Licensing Criteria Agreed Upon • Licensing Criteria Agreed • Worldwide Phase 3 Studies Upon Status Ongoing • Worldwide Phase 3 Studies • Submission Early 2010 Ongoing • Submission Early 2009 Peak Sales > $3 Billion > $1.5 Billion 19
  20. 20. Bapineuzumab Phase 3 for Alzheimer’s Disease Four Studies in Over 4,000 Patients Are Beginning n Worldwide First U.S. Patient Enrolled December 2007; International Studies to Initiate May 2008 Co-Primary Efficacy Endpoints – Validated Cognitive n and Functional Scales Other Cognitive, Functional, Behavioral, Biomarkers, Health Outcomes Endpoints Phase 2 Data Mid-2008 n Top Line Press Release Full Data at ICAD in July 20
  21. 21. Wyeth Pharmaceutical Success Imperatives Drive Growth in Products and Regions 1. Successfully Introduce New Products 2. Sharpen Focus - Manage Costs – Define Path 3. 21
  22. 22. Project Impact: Focus and Sequence 2008 2009 2010+ Level I: Cost Reduction • Reduce/Eliminate Costs and Expense Level II: Business ModelModel & Structure Level II: Business & Structure Refinement • Change How We Operate and Improve Performance Within Current Business Model and Structure Level III: Pharma Strategic Redesign Level III: Pharma Strategic Direction • Change Our Business/Operating Model for the Future 22
  23. 23. Project Impact: Functional Teams Manufacturing Site Network n and Supply Productivity and Performance n Process Excellence n Offshoring and Outsourcing n Research and Site Network and Spend Optimization n Pre-Clinical Operational Efficiencies (Grants, etc.) n Clinical, Medical and Alternative Investment Model n Regulatory Portfolio Optimization n Global/Regional/Local/Business Unit n Commercial Affiliate Structure n Sales Operating Model n Spend Effectiveness n 23
  24. 24. Project Impact: Cross-Functional Teams Purchased goods and Services Support Function Models n Demand Management n Information Services Vendor Consolidation n Goods and Services Pricing n Facilities/Real Estate Review n Infrastructure/ Support Therapeutic/Disease Areas n Portfolio/Pipeline Mix Strategic Direction n Specialty/Primary Care Mix n 24
  25. 25. Key Financial Metrics Net Cash (Including Diet Drug Security Funds) = $2.8 n Billion Cash and Cash Equivalents at 3/31/08 = $14.5 Billion Total Debt at 3/31/08 = $11.7 Billion Uses of Cash n Mergers and Acquisitions/In-Licensing Share Repurchases Dividends Repayment of Debt 25
  26. 26. Wyeth: Positioning Itself for Future Growth Diversified by Business n Prescription, Consumer, Animal Health Primary Product Engines Continue to Offer Growth Opportunities n Enbrel, Prevnar, Nutritionals New Product Launches Contributing to Revenue Growth n Proven Capability in Three R&D Platforms and Proven Ability to n Successfully Commercialize Biotech, Vaccine and Small Molecules Pipeline Offers Range of Options Including Both Near-Term and n Blockbuster Candidates Positioned to Take Advantage of Global Growth Opportunities n 26