A sustainable business model based on innovation and ... - Roche
A sustainable business model based on innovation and ... - Roche
A sustainable business model based on innovation and ... - Roche
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<strong>Roche</strong><br />
A <str<strong>on</strong>g>sustainable</str<strong>on</strong>g> <str<strong>on</strong>g>business</str<strong>on</strong>g> <str<strong>on</strong>g>model</str<strong>on</strong>g> <str<strong>on</strong>g>based</str<strong>on</strong>g> <strong>on</strong> innovati<strong>on</strong> <strong>and</strong><br />
productivity gains<br />
Karl Mahler, Head of Investor Relati<strong>on</strong>s<br />
1
This presentati<strong>on</strong> c<strong>on</strong>tains certain forward-looking statements. These forward-looking statements may be identified by words such as “believes”,<br />
“expects”, “anticipates”, “projects”, “intends”, “should”, “seeks”, “estimates”, “future” or similar expressi<strong>on</strong>s or by discussi<strong>on</strong> of, am<strong>on</strong>g other things,<br />
strategy, goals, plans or intenti<strong>on</strong>s. Various factors may cause actual results to differ materially in the future from those reflected in forward-looking<br />
statements c<strong>on</strong>tained in this document, including am<strong>on</strong>g others:<br />
(1) pricing <strong>and</strong> product initiatives of competitors;<br />
(2) legislative <strong>and</strong> regulatory developments <strong>and</strong> ec<strong>on</strong>omic c<strong>on</strong>diti<strong>on</strong>s;<br />
(3) delay or inability in obtaining regulatory approvals or bringing products to market;<br />
(4) developments in financial market c<strong>on</strong>diti<strong>on</strong>s, including the market for acquisiti<strong>on</strong> financing <strong>and</strong> other capital markets <strong>and</strong> fluctuati<strong>on</strong>s in<br />
currency exchange rates;<br />
(5) uncertainties in the discovery, development or marketing of new products or new uses of existing products, including without limitati<strong>on</strong><br />
negative results of clinical trials or research projects <strong>and</strong> unexpected side-effects of pipeline or marketed products;<br />
(6) increased government pricing pressures or changes in third party reimbursement rates;<br />
(7) interrupti<strong>on</strong>s in producti<strong>on</strong>;<br />
(8) loss of or inability to obtain adequate protecti<strong>on</strong> for intellectual property rights;<br />
(9) Litigati<strong>on</strong>;<br />
(10) the inherent uncertainties involved in negotiati<strong>on</strong>s with the special committee of Genentech <strong>and</strong> that there can be no assurances that a<br />
negotiated transacti<strong>on</strong> will ultimately be agreed to or c<strong>on</strong>summated;<br />
(11) potential difficulties in integrating the <str<strong>on</strong>g>business</str<strong>on</strong>g>es of Genentech <strong>and</strong> <strong>Roche</strong>, <strong>and</strong> that some or all of the anticipated benefits of the<br />
proposed transacti<strong>on</strong> may not be realized <strong>on</strong> the schedule c<strong>on</strong>templated or at all;<br />
(12) that future dividends are subject to the discreti<strong>on</strong> of the board of directors of <strong>Roche</strong> <strong>and</strong> a number of other factors, some of which are<br />
bey<strong>on</strong>d the c<strong>on</strong>trol of <strong>Roche</strong>;<br />
(13) the ability of <strong>Roche</strong> to generate cash flow to, am<strong>on</strong>g other things, repay acquisiti<strong>on</strong>-related debt as currently c<strong>on</strong>templated;<br />
(14) loss of key executives or other employees; <strong>and</strong><br />
(15) adverse publicity <strong>and</strong> news coverage.<br />
The directors of Genentech who are also employees of <strong>Roche</strong> will not take part in the c<strong>on</strong>siderati<strong>on</strong> of the proposed transacti<strong>on</strong> by the<br />
Genentech board <strong>and</strong> accordingly are not permitted to comment or resp<strong>on</strong>d to questi<strong>on</strong>s regarding the transacti<strong>on</strong> as representatives of<br />
Genentech.<br />
For marketed products discussed in this presentati<strong>on</strong>, please see full prescribing informati<strong>on</strong> <strong>on</strong> our website – www.roche.com<br />
All menti<strong>on</strong>ed trademarks are legally protected.<br />
2
Performance up-date<br />
Strategy<br />
Main trends influencing l<strong>on</strong>g term value propositi<strong>on</strong>s<br />
Summary<br />
3
Q1 2009: High single-digit growth for both divisi<strong>on</strong>s<br />
Well above world market<br />
CHF bn<br />
% change in<br />
Q1’08 Q1’09 CHF local<br />
Pharmaceuticals 8.6 9.2 8 8<br />
Diagnostics 2.3 2.4 3 8<br />
<strong>Roche</strong> Group 10.9 11.6 7 8<br />
4
Performance up-date<br />
Our Strategy <strong>and</strong> the changing envir<strong>on</strong>ment<br />
Main trends influencing l<strong>on</strong>g term value propositi<strong>on</strong>s<br />
Summary<br />
5
<strong>Roche</strong>’s unique window of opportunity<br />
<strong>Roche</strong>’s unique positi<strong>on</strong><br />
Stability of<br />
<str<strong>on</strong>g>business</str<strong>on</strong>g> <str<strong>on</strong>g>model</str<strong>on</strong>g><br />
Peers<br />
Growth<br />
<strong>Roche</strong><br />
Bridging the cliffs,<br />
Cost-cutting,<br />
Diversificati<strong>on</strong><br />
2007 2013-14<br />
The industry<br />
Low replacement power of current<br />
earnings levels<br />
Poor pipelines<br />
Cost cutting<br />
<strong>Roche</strong><br />
Extended stability<br />
Low generic exposure<br />
Investment into the future<br />
6
Focus <strong>on</strong> our core <str<strong>on</strong>g>business</str<strong>on</strong>g>es<br />
High<br />
<strong>Roche</strong> Focus<br />
Pharma<br />
Dia<br />
Medical<br />
Differentiati<strong>on</strong><br />
MedTech<br />
Generics<br />
OTC<br />
Low<br />
Premium for Innovati<strong>on</strong><br />
High<br />
7
<strong>Roche</strong>’s strategy focuses al<strong>on</strong>g either dimensi<strong>on</strong><br />
Proximity<br />
to Core<br />
(regarding<br />
products)<br />
Corixa<br />
BioVeris<br />
Domantis<br />
Chir<strong>on</strong><br />
Vaccines Vaccines<br />
Hexal<br />
GlycArt<br />
Sirtris<br />
Pharma Pharma<br />
Lek<br />
Generics Generics<br />
Zentiva<br />
NimbleGen<br />
Sabex<br />
Proximity to Core<br />
(regarding <str<strong>on</strong>g>business</str<strong>on</strong>g> <str<strong>on</strong>g>model</str<strong>on</strong>g>)<br />
*<br />
Bubble size depicts<br />
value of acquisiti<strong>on</strong><br />
Source: SDI Analysis<br />
8
Not to invest in the future means being out of<br />
<str<strong>on</strong>g>business</str<strong>on</strong>g> in ten years<br />
Refill of top line<br />
Maturing<br />
portfolio<br />
Years<br />
1 2 3 4 5 6 7 8 9 10<br />
Drug development<br />
timeline*<br />
Pre-clinical<br />
R&D<br />
Clinical R&D<br />
NDA Review<br />
*Source: www.fda.gov/fdac/graphics/newdrugspecial/drugchart.pdf<br />
9
A well risk balanced approach to investment<br />
Most projects in late stage de-risked<br />
New<br />
Molecular<br />
Entities<br />
% of Pharma<br />
Development spend<br />
NMEs<br />
in<br />
Phase<br />
III<br />
40 NMEs in Phase I<br />
16 NMEs in Phase II<br />
dalcetrapib (CETPi)<br />
*PPARαγ<br />
taspoglutide (GLP-1)<br />
TDM-1<br />
ocrelizumab<br />
pertuzumab<br />
1 LE in Phase I<br />
Proof of C<strong>on</strong>cept<br />
<br />
<br />
<br />
<br />
<br />
Line<br />
Extensi<strong>on</strong>s<br />
42% 40%<br />
11 LEs in Phase II<br />
<br />
36 LEs in Phase III<br />
2007 2008<br />
* Formal decisi<strong>on</strong> to move into phase III pending<br />
10
Resp<strong>on</strong>sible management of R&D spend<br />
Higher attriti<strong>on</strong> in early stage - higher success in late stage<br />
100<br />
90<br />
100<br />
80<br />
60<br />
40<br />
Success Rate (%)<br />
80<br />
70<br />
Preclinical, Phase I <strong>and</strong> II Phase III <strong>and</strong> Registrati<strong>on</strong><br />
Industry Median<br />
<strong>Roche</strong><br />
20<br />
Industry Median<br />
<strong>Roche</strong><br />
Attriti<strong>on</strong> Rate (%)<br />
60<br />
0<br />
'95-'99<br />
'96-'00<br />
'97-'01<br />
'98-'02<br />
'99-'03<br />
'00-'04<br />
'01-'05<br />
'02-'06<br />
'95-'99<br />
'96-'00<br />
'97-'01<br />
'98-'02<br />
'99-'03<br />
'00-'04<br />
'01-'05<br />
'02-'06<br />
Source: R&D General Metrics Study, KMR GROUP, INC
Performance up-date<br />
Strategy<br />
Main trends influencing l<strong>on</strong>g term value propositi<strong>on</strong>s<br />
Pers<strong>on</strong>alized Healthcare- <strong>Roche</strong> best positi<strong>on</strong>ed<br />
Summary<br />
12
Main trends influencing the l<strong>on</strong>g-term value<br />
propositi<strong>on</strong>s<br />
Pers<strong>on</strong>alised Healthcare<br />
Maximizing assets <strong>on</strong> h<strong>and</strong><br />
13
Pers<strong>on</strong>alised Healthcare<br />
Increasing dem<strong>and</strong> by stakeholders<br />
Patients &<br />
Physicians<br />
Best treatment<br />
Regulators<br />
Better efficacy &<br />
safety profile<br />
Payers<br />
Better cost / benefit<br />
Industry<br />
More competitive<br />
14
Scenarios for PHC Added Value Distributi<strong>on</strong><br />
Value captured by different stakeholders depending <strong>on</strong><br />
IP <strong>and</strong> timing of diagnostic<br />
Breast Cancer<br />
Assay<br />
Rx<br />
Low<br />
IP for Diagnostic<br />
High<br />
Rx<br />
B-Raf inhibitor<br />
B-Raf mutant test<br />
Dx<br />
High<br />
High<br />
Dx<br />
Diagnostic after<br />
Drug Launch<br />
Payor<br />
Rx<br />
High<br />
Low<br />
Neutral<br />
High<br />
Payor<br />
Rx<br />
Diagnostic with<br />
Drug Launch<br />
Dx<br />
Medium<br />
Medium<br />
Dx<br />
K-Ras Test<br />
Payor<br />
High<br />
Neutral<br />
No IP for Diagnostic<br />
Payor<br />
Herceptin <strong>and</strong><br />
Her2 test<br />
15
Main trends influencing the l<strong>on</strong>g-term value<br />
propositi<strong>on</strong>s<br />
Pers<strong>on</strong>alised Healthcare<br />
Maximizing assets <strong>on</strong> h<strong>and</strong><br />
16
Key drivers for l<strong>on</strong>g term development in place<br />
Develop the short term drivers while not neglecting the l<strong>on</strong>g<br />
term opportunities<br />
Inherent development risk<br />
Low High<br />
ILLUSTRATIVE<br />
Oncology<br />
Inflammati<strong>on</strong><br />
existing<br />
Earlier Phases<br />
Maturity of portfolio<br />
Virology<br />
CNS<br />
Metabolic<br />
17
Oncology franchise approaches CHF 20 billi<strong>on</strong> in sales<br />
Oncology sales<br />
(CHF billi<strong>on</strong>)<br />
20.0<br />
16.0<br />
12.0<br />
8.0<br />
4.0<br />
local growth<br />
+15 %<br />
7%<br />
40%<br />
53%<br />
+27 %<br />
+9 %<br />
+20 %<br />
Double-digit growth c<strong>on</strong>tinues<br />
Europe/RoW<br />
• C<strong>on</strong>tinued str<strong>on</strong>g increase in Avastin sales,<br />
driven by str<strong>on</strong>g uptake in mCRC <strong>and</strong> mBC<br />
• Emerging markets c<strong>on</strong>tributing to<br />
c<strong>on</strong>tinued growth of MabThera, Herceptin<br />
<strong>and</strong> Tarceva<br />
Japan<br />
• Str<strong>on</strong>g launches of Avastin, Tarceva, <strong>and</strong><br />
adjuvant Herceptin<br />
0.0<br />
2004 2005 2006 2007 2008<br />
Europe/RoW US Japan<br />
18
Major growth opportunities outside the US for key<br />
products<br />
% of sales<br />
100<br />
80<br />
56<br />
49 49<br />
41<br />
35<br />
29<br />
24<br />
60<br />
40<br />
20<br />
44<br />
51 51<br />
59<br />
65<br />
71<br />
76<br />
0<br />
AVASTIN MABTHERA CELLCEPT TARCEVA XELODA HERCEPTIN PEGASYS<br />
Time <strong>on</strong><br />
market<br />
EU / ROW (incl. Japan)<br />
Nth America<br />
19
Each cancer type is different<br />
And needs a specific treatment approach<br />
Incidence<br />
100%<br />
80%<br />
60%<br />
40%<br />
3rd line<br />
2nd line<br />
1st line<br />
adjuvant<br />
20%<br />
Survival<br />
0%<br />
CRC BC NSCLC<br />
Adjuvant DFS at 3 years* 72 % 81 % 50 %<br />
Metastatic median OS * 25 m<strong>on</strong>ths 36 m<strong>on</strong>ths 11 m<strong>on</strong>ths<br />
* Assuming best current care, Incidence: GLOBOCAN 2002 <strong>and</strong> <strong>Roche</strong> market research<br />
20
First in class mechanisms establishing new st<strong>and</strong>ards<br />
of care<br />
Rank Drug Sales ($m) MAT 3Q08<br />
1 MabThera 4,189<br />
2 Herceptin 4,129<br />
3 Avastin 4,052<br />
4 Glivec 3,491<br />
5 Taxotere 2745<br />
6 Eloxatine 2,236<br />
First in class<br />
7 Arimidex 1,944<br />
8 Gemzar 1,601<br />
9 Erbitux 1,412<br />
10 Casodex 1,343<br />
Successful products need to be first class entrants –<br />
the race begins early in R&D<br />
21
Paradigm change: Development of all main cancer<br />
types in parallel<br />
Example of Avastin<br />
3 rd<br />
line<br />
2 nd line<br />
1 st line<br />
Adjuvant<br />
<br />
<br />
<br />
3 rd<br />
line<br />
2 nd line<br />
<br />
3 rd<br />
line<br />
2 nd line<br />
<br />
<br />
1 st line<br />
1 st line Adjuvant<br />
Adjuvant<br />
RCC<br />
BC<br />
NSCLC<br />
<br />
CRC<br />
<br />
<br />
<br />
Gastric<br />
Ovarian<br />
Prostate<br />
Completed<br />
Ongoing<br />
<br />
GIST<br />
22
Avastin: significant potential for additi<strong>on</strong>al<br />
indicati<strong>on</strong>s in the metastatic setting<br />
Important Phase III newsflow over next 2 years<br />
Indicati<strong>on</strong><br />
Study name<br />
Start<br />
Status*<br />
Filing*<br />
Previously-treated<br />
glioblastoma<br />
BRAIN<br />
2007<br />
May 5, 2009 US FDA<br />
granted accelerated<br />
approval<br />
2008<br />
1st line metastatic<br />
ovarian cancer<br />
GOG-0218<br />
ICON-7<br />
Q3’05<br />
Q4‘06<br />
Interim analysis H2’09<br />
Expect data 2010<br />
2010<br />
Relapsed Platinum<br />
sensitive ovarian<br />
cancer<br />
OCEANS<br />
GOG-0213<br />
Q2‘07<br />
Q4’07<br />
Expect data 2010<br />
Expect data 2013<br />
2010-2013<br />
1st line horm<strong>on</strong>erefractory<br />
prostate<br />
cancer<br />
CALGB 90401<br />
Q4’07<br />
Interim analyses<br />
Q2’09 <strong>and</strong> Q4’09<br />
2011<br />
1st line advanced<br />
gastric cancer<br />
AVAGAST<br />
Q3’07<br />
Interim analysis H2‘09<br />
2010<br />
*Projected timelines for positive results<br />
23
Exciting mid / early-stage opportunities in <strong>on</strong>cology<br />
3rd generati<strong>on</strong> anti-CD20- potential for improvement over<br />
MabThera <str<strong>on</strong>g>based</str<strong>on</strong>g> <strong>on</strong> Glycart technology<br />
Improved product features<br />
Increased direct cell death<br />
Increased ADCC<br />
Lower CDC<br />
Phase I in NHL<br />
Extended patent life for many<br />
other m<strong>on</strong>ocl<strong>on</strong>cal antibodies?<br />
MabThera<br />
Herceptin<br />
Pertuzumab.<br />
GA101: Phase II <strong>on</strong>going<br />
Phase I data presented at ASH 2009<br />
ADCC= (antibody dependent cell-mediated cytotoxicity); CDC= (complement dependent cytotoxicity)<br />
24
ASCO 2009 Highlights<br />
Avastin<br />
NSABP C-08: Adjuvant col<strong>on</strong> cancer efficacy results – late-breaker abstract<br />
RIBBON-1: 1 st line HER2-negative metastatic breast cancer – oral presentati<strong>on</strong><br />
Tarceva<br />
ATLAS: 1 st line maintenance therapy for advanced n<strong>on</strong>-small cell lung cancer –<br />
late-breaker oral presentati<strong>on</strong><br />
SATURN: 1 st line maintenance therapy for advanced n<strong>on</strong>-small cell lung cancer –<br />
oral presentati<strong>on</strong><br />
SATURN: 1 st line maintenance therapy for advanced n<strong>on</strong>-small cell lung cancer biomarker data<br />
Herceptin<br />
ToGA: 1 st line HER2-positive advanced gastric cancer –<br />
oral presentati<strong>on</strong><br />
T-DM1<br />
Phase II sec<strong>on</strong>d-line+ HER2-positive mBC final results<br />
Joint <strong>Roche</strong>-Genentech<br />
Investor Science Events<br />
Sunday May 31st<br />
NSABP = Nati<strong>on</strong>al Surgical Adjuvant Breast <strong>and</strong> Bowel Project<br />
M<strong>on</strong>day June 1st<br />
25
Key drivers for l<strong>on</strong>g term development in place<br />
Develop the short term drivers while not neglecting the l<strong>on</strong>g<br />
term opportunities<br />
Inherent development risk<br />
Low High<br />
ILLUSTRATIVE<br />
existing<br />
Oncology<br />
Inflammati<strong>on</strong><br />
Maturity of portfolio<br />
Virology<br />
Metabolic<br />
CNS<br />
Earlier Phases<br />
26
Rheumatoid Arthritis: Not all patients resp<strong>on</strong>d to<br />
current therapy<br />
Gold st<strong>and</strong>ard therapy<br />
anti-TNF + MTX<br />
% ACR70 Resp<strong>on</strong>ders<br />
Unmet Medical Need<br />
Only 1 of 3 patients receives<br />
significant benefit<br />
anti-TNF + MTX<br />
anti-TNF al<strong>on</strong>e<br />
ACR 7070 Improvement in:<br />
MTX al<strong>on</strong>e<br />
Disease activity – patient<br />
Disease activity – physician<br />
Patient assessment of Pain<br />
Physical disability<br />
Acute phase reactants – CRP,ESR<br />
27
Comprehensive development program in RA<br />
Covers all treatment stages<br />
MabThera<br />
IMAGE**<br />
(MTX naive, X-ray study)<br />
SERENE*<br />
(MTX IR)<br />
MIRROR*<br />
(MTX IR, dose escalati<strong>on</strong>)<br />
REFLEX<br />
(Anti-TNF IR)<br />
SCORE**<br />
(DMARDs IR)<br />
current Tx paradigm<br />
NSAIDs or Cox-2 DMARDs<br />
TNF inhibitors 2 nd biologic<br />
(+/- MTX) (+/- MTX)<br />
OPTION*<br />
(MTX IR)<br />
Actemra<br />
AMBITION*<br />
(6 mnth MTX free/ MTX naive,<br />
m<strong>on</strong>otherapy)<br />
TOWARD*<br />
(DMARDs IR)<br />
LITHE**<br />
(MTX IR, X-ray study)<br />
RADIATE*<br />
(Anti-TNF IR)<br />
* Indicati<strong>on</strong> not yet approved, awaiting regulatory approval<br />
** Phase III trial in progress<br />
28
Performance up-date<br />
Strategy<br />
Main trends influencing l<strong>on</strong>g term value propositi<strong>on</strong>s<br />
Summary<br />
29
<strong>Roche</strong> Pharma pipeline overview<br />
Focused <strong>on</strong> five Disease Biology Areas<br />
Oncology<br />
Xeloda<br />
MabThera<br />
Herceptin<br />
Avastin<br />
Tarceva<br />
Pertuzumab<br />
T-DM1<br />
R7159 3 rd gen anti-CD20<br />
R1507 (IGF-1R mAb)<br />
Apomab<br />
Apo2L/TRAIL<br />
Anti-CD40 mAb<br />
Hedgehog inhibitor<br />
16 ph. I compounds<br />
On H<strong>and</strong><br />
RA/Inflammati<strong>on</strong><br />
MabThera<br />
Actemra<br />
R1594 ocrelizumab<br />
R667 RARγ<br />
9 ph. I compounds<br />
Metabolic/CV<br />
R1658 CETP Inh.<br />
R1583 GLP-1<br />
R1439 dual PPAR<br />
9 ph. I compounds<br />
Promising Late<br />
Stage<br />
Virology<br />
Pegasys<br />
Tamiflu<br />
R3484 HPV16<br />
R7128 HCV pol. Inh.<br />
R7227 HCV prot. inh.<br />
Emerging<br />
Mid-Term<br />
CNS<br />
ocrelizumab RRMS<br />
R1678 Schizophrenia<br />
R3487 Alzheimer’s<br />
4 ph. I compounds<br />
Early<br />
Stage<br />
30
Profitability measures<br />
Operating cash flow per employee<br />
CHF 000’s<br />
250<br />
Operative Cash Flow per employee<br />
200<br />
<strong>Roche</strong><br />
150<br />
100<br />
GSK<br />
Sanofi-Aventis<br />
Novartis<br />
50<br />
0<br />
2003<br />
2004 2005 2006<br />
2007<br />
SDI Analysis; Source: Annual Reports of corresp<strong>on</strong>ding companies, datastream, currency rates (average 365 days)<br />
31
<strong>Roche</strong>: M&D <strong>and</strong> G&A % to sales<br />
Freeing up resources for innovati<strong>on</strong><br />
40%<br />
<strong>Roche</strong> (Prescripti<strong>on</strong>)<br />
GSK<br />
35%<br />
Sanofi-Aventis<br />
30%<br />
Eli Lilly<br />
AstraZeneca<br />
25%<br />
Merck & Co.<br />
Novartis<br />
20%<br />
2002 2003 2004 2005 2006 2007<br />
32
Patent expiry 2008-2012<br />
<strong>Roche</strong> short-/medium-term has the str<strong>on</strong>gest patent<br />
protected portfolio… <strong>and</strong> highest share of biotech products<br />
100<br />
Top 10 Corporati<strong>on</strong>s Protected Sales Expiring to 2012 & Bey<strong>on</strong>d (US$ C<strong>on</strong>st)<br />
SHARE OF PROTECTED SALES EXPIRING % US$<br />
80<br />
60<br />
40<br />
20<br />
0<br />
42<br />
Total<br />
Market<br />
69<br />
GSK<br />
62<br />
Pfizer<br />
54 51 48 48<br />
AZ<br />
S-A<br />
J&J<br />
MSD<br />
41<br />
Lilly<br />
36<br />
Novartis<br />
24<br />
Abbott<br />
14<br />
<strong>Roche</strong><br />
2008-2012 2013 & bey<strong>on</strong>d<br />
Source: IMS Health MIDAS Market Segmentati<strong>on</strong> MAT June 2008, Ethical protected br<strong>and</strong> sales <strong>on</strong>ly.<br />
33
<strong>Roche</strong>: A unique “investment case”<br />
Clear <strong>and</strong> focused strategy<br />
– Medically differentiated products<br />
– Poised to become leader in Pers<strong>on</strong>alised Healthcare<br />
Attractive risk profile<br />
– Low generic risk; lowest am<strong>on</strong>g European large-cap players<br />
Assets in place for sustained success<br />
– World market leader in Oncology<br />
– Emerging Rheumatology & Autoimmune, <strong>and</strong> Metabolic franchises<br />
Industry-leading organic growth<br />
Unique high-tech healthcare investment<br />
34
We Innovate Healthcare<br />
35
Avastin in mCRC: Str<strong>on</strong>g uptake c<strong>on</strong>tinues<br />
First line<br />
Sec<strong>on</strong>d line<br />
Patient share<br />
Patient share<br />
35%<br />
35%<br />
30%<br />
30%<br />
25%<br />
25%<br />
20%<br />
Avastin<br />
20%<br />
Avastin<br />
15%<br />
15%<br />
10%<br />
10%<br />
5%<br />
5%<br />
0%<br />
Q4<br />
05<br />
Q1<br />
06<br />
Q2<br />
06<br />
Q3<br />
06<br />
Q4<br />
06<br />
Q1<br />
07<br />
Q2<br />
07<br />
Q3<br />
07<br />
Q4<br />
07<br />
Q1<br />
08<br />
Q2<br />
08<br />
Q3<br />
08<br />
Q4<br />
08<br />
0%<br />
Q4<br />
05<br />
Q1<br />
06<br />
Q2<br />
06<br />
Q3<br />
06<br />
Q4<br />
06<br />
Q1<br />
07<br />
Q2<br />
07<br />
Q3<br />
07<br />
Q4<br />
07<br />
Q1<br />
08<br />
Q2<br />
08<br />
Q3<br />
08<br />
Q4<br />
08<br />
Source: Synovate Patient M<strong>on</strong>itor <strong>and</strong> Top-Up, Top-5 EU<br />
36
Top 10 Oncology Products<br />
Sales <strong>and</strong> market shares in seven major markets in 2007<br />
50%<br />
40%<br />
Avastin<br />
$2,651m<br />
CAGR, 2006-07<br />
30%<br />
20%<br />
10%<br />
0%<br />
Herceptin<br />
$2,653m<br />
Erbitux<br />
Taxotere<br />
$1,040m<br />
Arimidex<br />
$1,837m<br />
$1,364m<br />
Gleevec<br />
$1,990m<br />
Gemzar<br />
Lupr<strong>on</strong><br />
Rituxan<br />
$1,156m<br />
$1,411m<br />
Eloxatin<br />
$3,216m<br />
$1,964m<br />
0% 2% 4% 6% 8% 10% 12%<br />
-10%<br />
Bubble size represents 2007 sales<br />
Market share, 2007<br />
Source: Datam<strong>on</strong>itor, MIDAS Sales Data, IMS Health, April 2008, Copyright ©, reprinted<br />
with permissi<strong>on</strong><br />
<strong>Roche</strong>/Genetech’s MabThera, Herceptin <strong>and</strong> Avastin<br />
DMHC2416: Commercial Insight: Top 20 Therapy Cancer Br<strong>and</strong>s (08/2008)<br />
dominate the current cancer br<strong>and</strong>s market<br />
37