Presentation of the Pharmaceutical Company Teva

1. Big Pharma? Clotilde Bourdon Olivia Scaccia Pauline Fontaine Antoine Henninot

2. Teva’s id Headquarters : PetakTikva, Israel Stock exchange : Nasdaq SEAQ International London Francfort Tel-Aviv Sector: Generics, Brandeddrugs, Brands One of the 20-largestpharmaceuticalcompanies in the world Operating in ≥60 countries, 38 000 employees

3. Teva and its concurrents

4. Teva: public on the Tel Aviv Stock Exchange Imported medicines trough Jerusalem only source of treatments for the local market History of the company 1901 1930 WW II 1948 1951 Teva: pharmaceutical industry Israel state

5. TevaPhcal Industries, Israel’slargestdrugmaker 2nd innovativedrug, ttt PD History of the company (2) July 2006 Acquisition of Ikapharm, and othercompanies 1960-70 1980-90 1996 2005 Acquisition of IVAX QVAR®, ProAirHFA®

6. MHRA: expanded label for Copaxone + Laquinimod: « fasttrack » designation (FDA) History of the company (3) StrategicR&D agreement with JexysPhctls Acquisition of Barr Phtcal Launchitsgeneric version of the birth control pillYasmin Joint venture withLonza Group to marketbiosimilars Jan 2009 Dec 2008 Dec 2008 Feb 2009 Aug 2009

7. Strategy Increasing generic Market Share Increase organic growth through R&D Redefining Customer Service Intellectualproperty Biopharmaceuticals Vertical integration Horizontal integration

9. Geographical

10. Therapeutic areas

11. Pharmaceutical technologyManagement’s flexibility + ability to react to changing market conditions Dynamism

12. UNBRANDEDGENERICS

13. Context : growth in generics

14. Expanding generic market

16. Opportunities for Teva drugs will lose patent exclusivity (Atorvastatin Calcium – 12.4 billion in sales) Hatch-Waxman Act -> + 6 months of sales exclusivity lawyers looking for patent weaknesses => Lotrel (amlodipine) elements of the patent => public domain => $330 million in 6 months FDA 218 applications of generics; Teva is challenging the patents of more than half of them => Most robustgeneric pipeline => Big Pharma isn't happy about the way Teva operates

17. BRANDED GENERICS

18. RespiratoryProducts 2005 : acquisition of IVAX QVAR® (beclomethasonedipropionate HFA): maintenance treatment of asthma ProAirHFA®(albuteral sulfate): relieves the symptoms of bronchospasms => leading competitor in the field of respiratory therapy

20. Match patient’s needs : ease of use and effectiveness

22. Women’sHealth Barr Pharmaceutical Plan B™ OTC/Rx(levonorgestrel) emergency oral contraceptive, Enjuvia™ (syntheticconjugatedestrogens, B) hormone therapyto treat moderate-to-severe vulvar and vaginal atrophy associatedwithmenopause, Seasonique®: next generation extended-cycle oral contraceptive product continuous hormonal support

23. 2009: generic version of the birth control pill Yasmin ratherthanlicensingitfrom Bayer Schering => brandedgeneric« Ocella » Women’sHealth

24. TEVA + IVAX

25. BIOSIMILARS Shlomo Yanaï, PDG de Teva« Nous avons identifié les biosimilaires comme des relais de croissance majeurs dans notre stratégie à long terme, et nous sommes en train de consolider nos connaissances, nos capacités et nos infrastructures pour positionner Teva comme un leader de ce marché »

26. Biopharmaceuticals and Biogenerics Biogenerics = important long-termgrowth opportunity Cancer, Arthritis, Rare genetic disorders = faster-growing segments of the global pharmaceutical market + major contributors to prescription drug costs Primary biopharmaceutical products = INF alpha 2b GCSF(granulocyte colony-stimulating factor) hGH(human growth hormone) in the U.S. (agreement with Savient) TevaGrastim® = the 1st GCSF biosimilar marketed yesterday in UE

28. Teva + Sicor 2003 : Acquisition US manufacturer Sicor, for $3.4 billion =>Teva: access to Sicor’sinjectable products and biosimilar development capacity expanded biopharmaceutical pipeline => take advantages of CoGenesys biological technology develop, manufacture and market a portfolio of biosimilars highly complementary companies => leading position in the emerging biosimilars market Teva + CoGenesys 2008 : Acquisition Teva + lonzaJanuary 2009 : Signed a joint venture

29. CoGenesys: albumin-fusion technology division within Human Genome Sciences Inc. (HGSI), 2005 fusing the gene that expresses human albumin + the gene that expresses a therapeutically active protein => long-acting protein drugs => long-acting treatment options efficacy and safety similar to or better than that of existing protein drugs more convenient dosage schedules

30. CoGenesys: Pipeline growthhormone and interferon alpha (by HGS and Novartis) Zablin, phase 3 ended SubmitsFDA licencing for hepatite C chronic Once everytwoweeks GLP-1 (beingdeveloped by GlaxoSmithKline underlicensefrom HGS) Albiglutid, Phase III, once a week or less B-type natriuretic peptide (BNP). CoGenesys' leadclinical candidate, Cardeva, is a long-acting form of BNP (treatment of chronicheartfailure) advancingtoward the clinic for outpatient. Albugranin, a long-acting form of Granulocyte ColonyStimulating Factor (GCSF), readiedfor clinicaldevelopment, treatmentof febrileneutropeniaassociatedwithchemotherapy 27

31. Teva’sideas for the comingyears difficult to copy BUT Teva is eager to produce "biogeneric" versions of drugs "The good news for us is that, because [biogenerics] require high-cost investments, we're only going to see a few competitors” (Teva's R&D chief) US : No legal way to sell generic copies of biologics BUT Teva isn't waiting idly: sells them in Europe and is ramping up production capacities

32. BRANDS

34. Autoimmune (AI) diseases

36. Multiple Sclerosis myelin is lost scars= scleroses (“multiple sclerosis”)

38. 4 differentforms of MS

40. Azilect®: 2ndTeva’sinnovativedrug DCI= Rasagiline 2nd generationMAO-B inhibitor treatment of idiopathic Parkinson’s Disease as: - monotherapy - adjunct therapy (with levodopa) in patients with end-of dose motor fluctuations Incidence: 1% people over 65

41. BRANDS: PIPELINE

42. ≥ 11 innovativeprodutsexpected

44. Patients requiring bone marrow transplantation

45. Pb: Only 15% of patients requiring bone marrow transplantation: find matching donors

46. => StemEx® : Treatment of leukemia and lymphomaStem/progenitor cells isolated from umbilical cord blood Transplantation to patient Bonemarrowregenerationaftergraft

48. Gamida Cell: world leader in stem cell expansion technologies and therapeutic products

50. multiple sclerosis(MS)

51. Kynurenine pathway inhibitor : TRP metabolism : neuroactive intermediate NMDA, key role in the communication between SNC and immune system => inflammation

52. Confirm the position as world leader Teva for the treatment of MSTerfluonamide (Sanofi)

53. Teva + MediWound, 2009 Debrase® Gel Dressing (DGD)= Bromelain based enzymatic debriding agent (mixture of proteolytic enzymes extracted from pineapple plant stem) Dissolution (high specificity and selectivity) of eschar in burns Alternative to surgery and/or lengthy non-surgical procedures Superior and more cost effective treatment option for burns BUTpainful phase III study, Marketing authorization in Europe during 2010

54. teva + oncogenex : 2009 OGX-011 = custirsen sodium ; => adjunct therapy to enhance the effectiveness of chemotherapy Blocksclusterin production(cell survival protein) overproduced in several cancers Multiple Oncology Indications: 2010: global Phase III :Metastatic Castrate Resistant Prostate Cancer (CRPC) Phase III :1st-Line, in association, treatment of Advanced, Unresectable Non-Small Cell Lung Cancer (NSCLC) : initiated by early 2011. key component of Teva branded oncology medicines franchise.

55. Diapep 227 Treatment of Type I Diabetes modulates immune response Synthetic analog of diabetes epitope HSP 60 in beta cells (Diapep 24AA (437-460 HSP 60)) Phase 3 on going, 300 patients 1stcriteria : beta cell function preservation

56. TEVA in 2010

57. FINANCIAL PART

58. sales worth a record US $13,9 billion in 2009

59. Major sales in the Neurological area

60. CopaxoneisTEVA’sblockbuster drug Teva is the only generics maker with its own blockbuster drug While the bulk of Teva’s revenues are derived from generics, the company has one major innovative product,Copaxone

61. "One of the biggest concerns on Wall Street is, When does Teva become the Pfizer of generics?" asks Ken Cacciatore, an analyst at Cowen & Co. "When does it become too big to grow?"

62. Key figures Stock increase 1.6% since yesterday 7.17% since 1st January 2010 39% for 1 year 413% for 10 years

63. January 11 2010, 28th annual J.P Morgan HealthcareConference :

64. THREATS ?

65. Dark sides generic drug market => price = main differentiating factor -> competition -> profit margins Teva enjoys : ++ competitive advantages => continue earnings excess returns + able to purchase competitors at a low price

66. A generic of Copaxone – a hazard for Teva? patent end : 2012 BUT Continued growth: RRMS gold standard therapy Pure generic of Copaxoneunlikely + significant studies Proprietary injection device Limited competition: slow penetration of competitors 2009 : MHRA : expanded label => treatment of patients withclinicalisolated syndrome suggestive of multiple sclerosis

67. 2009: FDA blocks approval of a generic version of its Copaxone Momenta Pharmaceuticals Inc. and Mylan Inc. Petition : to slow the approval process + prolong market exclusivity FDA -> no generic version of Copaxonein U.S. market until 2011

68. Competitors? Novartis: biogeneric version of Pfizer's Genotropin (a human growth hormone), Japan Merck: plans to develop biogenericsBioVentures => "Teva is going to be competing with the big boys,“ says Sanford Bernstein analyst Ronny Gal Big Pharma : join the generic market: - Pfizer would expand its portfolio of generics - GSK: partnership with Indian generic company

69. Israel: threat? Inaccessible market such as Iran…. Political, military conflict

70. PERSPECTIVES

71. What about the futur ? $31 billion in 2015 net incomeof $6.8 billion in 2015 generics: $135 to $150 billion by 2015 governmentreforms: costsavings+ $150 billion worth of brand namedrugslosing patent protection in the next 5 years boost profits by 14% annually for the next 5 years, compared with flat earnings at the five biggest pharmaceutical companies So far the drugmaker is on target to reach that goal!

72. International expansion

73. Growth in biosimilars

74. Mix of generics and branded remains constant

75. SWOT

76. What about joining TEVA ?

79. Talampanel Glutamat receptor antagonist, orphan drug Monoclonal antibody against Pd1 protein=> inhibcelular apoptosis End of phase III, 2012 CT 011

80. Pipeline products in development Cf Barr acquisition : prevent epidemics of an acute respiratory disease to armed forces personnel/market it to immunosuppressed patients

81. Projects in whichthey have an interest