wyeth UBS Global Life Sciences Conference


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wyeth UBS Global Life Sciences Conference

  1. 1. UBS Global Life Sciences Conference Mary Katherine Wold Senior Vice President, Taxes and Treasury September 26, 2006
  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 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 10- K, 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. 2
  3. 3. Wyeth Delivering Strong Growth For The First Half 2006 Net Revenue ($B) Net Income* ($B) Earnings Per Share* $12 $2.5 $2.00 +16% +15% +8% $10 $2.0 $1.50 $10B $8 $1.5 $2.24B $1.64 $9.2B $6 $1.00 $1.0 $1.94B $1.43 $4 $0.50 $0.5 $2 $0 $0.0 $0.00 1H05 1H06 1H05 1H06 1H05 1H06 * Excludes Certain Significant Items and Reflects the 2005 Pro 3 Forma Effect of Expensing Stock Options
  4. 4. Marketed Products Strong Growth in 1H06 Enbrel +20% $1,382 M (Amgen) $705 M (Wyeth) $2B Effexor +6% $1.9B +33% Prevnar $950 M Protonix +7% $923 M Alliance Rev. $612 M +28% Nutritionals +13% $588 M 1H06 Pharma Premarin +12% $526 M Revenue Zosyn +4% $479 M Growth +10% BeneFIX +5% $180M +13% Rapamune $162M BMP-2 +43% $156 M $0 $500 $1,000 $1,500 $2,000 $2,500 (in millions) 4
  5. 5. #1 Biologic Therapy Globally in Rheumatology and Dermatology One of Only Five International Biotech Products With Sales Greater than n $1 Billion Enbrel’s ex-US Sales Growth Exceeded the Biologic Market’s for the n Third Consecutive Year-Over-Year Period Manufacturing Capacity Expansion Completed n Significant Growth Opportunities Exist n 4 Market Penetration – RA: US = ~30%; EU = 22% 4 Market Penetration – Psoriasis: US = <5%; EU= 3% 1H06 Net Sales: $1.4 Billion NA (+12%); $705 Million International (+39%) n 4 International Growth Expected to Exceed 30% in 2006 over $1.1 Billion in 2005 Wyeth Receives Approximately Two-Thirds of Enbrel Global Profit 5
  6. 6. #1 Selling Antidepressant Worldwide Antidepressant Market Growth Slowed in 2005; Market n growing again in 2006 4 Market Trends Higher Then Expected, Still Lower Than History 4 Publicity Seems Balanced 4 Increasing Use of Generics in Antidepressant Market Promotional Focus to Position Effexor to Best Satisfy n Largest Unmet Need of Efficacy Panic Disorder Indication n 4 Launched in Many Key Markets; Total of 30 Approvals Expected in 2006, more in 2007 1H06 Revenue $1,862 Million (+6%) n 4 Expect Modest Growth for Effexor in 2006 to over $3.5 Billion in 2005 (mid single digit growth) 4 Resolved Effexor XR Patent Litigation with Teva 6
  7. 7. ® First Ever Billion Dollar Vaccine A “BioBlockbuster” 1H06 Revenues = $950 Million (+33%) n Major Improvements in Prevnar Manufacturing Capabilities n 4 Exceeded Our Manufacturing Targets by Producing Over 31 Million Doses of Prevnar in 2005 – Vials and Pre-filled Syringes Significant Improvements to Healthcare Worldwide n 4 94% Reduction in Invasive Pneumococcal Disease in Children Under Five* 4 29% Overall Reduction in Invasive Pneumococcal Disease in the Population (Children and Adults)* New National Vaccination Programs to be Launched in 2006 n 4 UK, Netherlands, Norway, Switzerland, Belgium, Greece 4 Support Stronger International Revenue Growth for Balance of 2006 Expect 2006 Revenues to Grow in Excess of 25% over $1.5 n Billion in 2005 7 * Source: CDC – September 2005
  8. 8. Focusing on Profitable Growth Strategy is to Align Pricing, Contracting, Marketing and n Selling Efforts on High Margin Growth Opportunities 4Volume Growth in High Value Managed Care Segment 4Highest Overall Managed Care Formulary Access of the PPI Class 4Now the 2nd Most Prescribed Brand in the HMO Segment 4Decreasing Volume Expected from the Least Profitable Segments 1H06 Revenue $923 Million (+7%) n Expect Net Revenue in 2006 to Grow at a Rate n Similar to 2005 (6%) 8
  9. 9. New Medical Consensus Emerging on Value of Hormone Therapy Continue to Support the Appropriate n Use of Hormones and Provide Perspective on Benefit/Risk Provide Clinicians with Treatment n Options and Doses to Individualize Therapy DTC Campaigns Educate and Inform n 1H06 Revenue $526 Million (+12%) n 2006 Revenue Expected to be ~$1 n Billion 9
  10. 10. Largest Selling IV Antibiotic Globally Preferred “Workhorse” Antibiotic n Revenues Became #1 Ranked IV Antibiotic n (in millions) Globally in 2H 2005 $1,000 Unsurpassed Efficacy – Only IV n $890 Antibiotic Proven to Help Minimize $800 $760 the Emergence of Bacterial Resistance $639 $600 New Formulation Launched 2006 n 4 Expanded Compatibility with Diluents $406 and Aminoglycosides $400 4 Patent Protected Through 2023 1H06 Revenue Reached $480 Million n $200 (+4%) 4 Demand Remains Strong $0 4 Recovery from Manufacturing Supply 2002 2003 2004 2005 2006 Limitations Continues Through 2006 10
  11. 11. World’s First Glycylcycline Antibiotic 1st New Class of Broad Spectrum Antibiotic in 20 Years Only Effective Empiric Monotherapy That Simplifies Treatment of n Serious Infections Indications: n 4 Complicated Skin & Skin Structure Infections 4 Complicated Intra-Abdominal Infections 4 Community Acquired & Hospital Acquired Pneumonia Submission in Early 2007 Strong Formulary Acceptance in US n 4 Already Listed on More Than 1,800 Hospital Formularies European Approval Received May 2006; International Launches n Will Take Place Throughout 2006 1H06 Revenue $27 Million n Peak Year Sales Potential $1 Billion n 11
  12. 12. Wyeth’s Evolving Phase 3 Pipeline Project Indication Proposed Filing Lybrel Contraception Filed 6/05 DVS-233 Depression Filed 12/05 Bazedoxifene Osteo Prevention Filed 6/06 DVS-233 Vasomotor Filed 6/06 Bifeprunox Schizophrenia Near Term Temsirolimus Renal Cell Late 2006 Opioid Induced Early 2007 Methylnaltrexone (Sub Q) Constipation Tygacil CAP/HAP Early 2007 Bazedoxifene/CE Vaso/Osteo Late 2007 Methylnaltrexone (IV) Post Operative Ileus Late 2007/Early 2008 Methylnaltrexone (Oral) Opioid Induced Late 2008/Early 2009 Constipation
  13. 13. Longer Term Outlook About One-Third of Wyeth’s Business Exposed to Traditional Risk BioPharma and Products Vaccines Impacted by 24% 29% Future Patent Expirations 36% Premarin Slice 5 5% 5% Consumer and Products with Animal Health Nutritionals Expired 18% 6% Patents 11% 13
  14. 14. Cost Management Efforts Continue to Contain Cost Structure While Allowing Support of Key Brands and R&D 2006 Guidance* Project Springboard v Increase Efficiency of Selling v Gross Margin 71% to 73% Approach Ø Gross Margin 73.4% in 1H06 Ø Commercial Excellence v SG&A Low Single Digit v Enhance R&D Technical and Increase Management Processes Ø SG&A Up 1% for 1H06 Ø Learn and Confirm Ø Anticipate an increase in promotional investment for Ø ECDCs certain key products in 2H06. v Optimize Manufacturing Supply Chain Ø 27 Sites in 2005 vs. 43 in 2000 * Excludes Certain Significant Items and Reflects the 2005 Pro Forma Effect of 14 Expensing Stock Options.
  15. 15. Conclusion Wyeth’s Objectives Remain: • Achieve Solid Top Line Growth • Effectively Manage Costs • Grow the Bottom Line at a Meaningfully Faster Rate Than the Growth in Revenues 15