Millennium Pharmaceuticals, Inc.

1
Millennium Pharmaceuticals, Inc.

• What happened next?

2
Should they do the deal?

• Yes, because
• Long-term revenues (220 MM plus)
• Firm growth (1000 to 1300 employees)
• Further commitment to agribusinesss
• Software development and documentation

3
Should they do the deal?

• No, because
• 1000 employee threshold
• Already spread thin
• Agribusiness is not the long term goal
• Lundbergs lack of preparation raises commitment
  and understanding concerns

4
Should they do the deal?
5
Did they do the deal?

• No, they did not.
• Review of the Millennium website indicates that
  they have not done any agribusiness deals since
  Monsanto.

6
Millennium strategic direction

• Speed drug development through technology
• Serial steps in parallel
• Front load the discovery process
• Strategic alliances
• Become an integrated pharmaceutical firm

7
How have they done?

• Speed the process
• According to an article from TheStreet.com (July
  17, 2002), to date, Millennium has only one
  internally developed drug, an experimental
  metabolic drug in early Phase I testing, in
  clinical trials.

8
How have they done?

• Strategic alliances
• Since the Bayer deal, Millennium has successfully
  completed eight (8) major strategic alliances.
• These alliances have covered a variety of
  strategic areas, to help Millennium internalize
  new skills.
• In addition to the alliances, they have completed
  at least one major acquisition, Cor Therapeutics.

9
How have they done?

• Become an integrated pharmaceutical firm
• Simply put they have not. Their current
  revenue leading drug Integrilin came as part
  of the Cor Therapeutics acquisition and is
  marketed in conjunction with Schering-Plough.

10
How have they done financially?

• Market cap of 3 Billion
• 2002 expected sales of 300 Million
• Second quarter loss (excluding charges and gains)
  0.16 / share vs. 0.19 (analyst expected)
• Drug pipeline Viable and growing
  TheStreet.com July 17, 2002

11
How have they done financially?
12
Core Competencies(then now)

• Platform
• Productivity Innitiative
• Mergers and Alliances
• Franchise Areas
• People
• Source Millennium.com July 31, 2002