RAZADYNE Business Plan Review

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RAZADYNE Business Plan Review

• October 13, 2006

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Agenda

• Brand Overview
• Marketing Dynamics
• Strategy
• Financials

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RAZADYNE Brand Overview

• In the treatment of Alzheimers disease for
  patients and caregivers who have experienced a
  defining moment that led them to know something
  is wrong, Razadyne ER is a brand that empowers
  the patient to preserve self-reliance through
  sustaining daily living activities and dosing
  convenience, enabling both to maintain
  independence.

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Agenda

• Brand Overview
• Marketing Dynamics
• Strategy
• Financials

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RAZADYNE TRx Share Stabilizing
Aricept 78
Razadyne Brand 12
Exelon 11
Source IMS Health, NPA Plus
Source IMS Health, NPA Plus 8/06
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Opportunity By Channel and Specialty
Sales By Channel
TRx By Specialty
TRx YTD vs. BP All Channels 111 Retail
119 LTC 102
Neuro TRx volume up 11 YTD
Source IMS Health, NSP NPA YTD 8/06
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Retail Channel Performance Exceeds BP Forecast
2004
2005
2006 YTD
Launched Additional Alternate Channels
RAZADYNE ER launch
OMN Restructure (EC Sales Force)
Growth, 6mth vs prior 6mth 2.4
-7.8 Growth,
3mth vs prior 3mth 2.7
-7.8
SOURCE IMS-NPA (YTD 8/06)
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Continued Growth in Neuro and Stabilization in
PCP
RAZ ER Launch
Source IMS Health, NPA Plus
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Agenda

• Brand Overview
• Marketing Dynamics
• Strategy
• Financials

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RAZADYNE ER Brand Dynamics

• Weaknesses
• Brand differentiation
• Decreasing frequency/overall SOV
• No LTC presence
• Market forces not supporting class of drugs
• Potential for saleforce disruption
• Limited KOL support

• Strengths
• QD dosing vs. Exelon and Namenda
• LTC alternate channel
• MMA availability (preferred on United and Humana)

• Opportunities
• Alternate channel
• Pharma differentiation

• Threats
• 2007 MMA contracting
• US guidelines similar to NICE
• Paragraph IV challenges
• Competition Exelon, Aricept, Neramexane

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RAZADYNE ER Strategy

• Performance Goal we will maintain brand volume
  in 2007 to achieve
• 181 MM with increased profitability
• Effectively execute positioning with targeted
  prescribers through the sales force and alternate
  channels
• Maximize coverage of LTC through alternate
  channels, LTCPP, and JJ LTC partnerships
• Maximize MMA, VA/DoD, and LTCPP potential with
  contracting and targeted pull through programs
• Effectively manage/leverage market dynamics and
  brand lifecycle

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RAZADYNE ER Strategy
Grow volume in called on customer segments,
stabilize volume in non called on
Maintain focus in target LTC segments
Maintain Current Access
Objectives
Targeted approach on RAZAYNDE users in PCP
Neurology segments
Direct
Indirect

• Alternate channel / Alternate approach focus

• MMA, LTCPP VA/DoD contracting pull through

• Drive additional reach and frequency in target
  prescribers through non-salesforce initiatives

• Drive performance in select prescribers through
  PCP and Neurology salesforce

Drivers
Marketing Mix 70 non-personal (alternate
channels) 30 personal promotion
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Agenda

• Brand Overview
• Marketing Dynamics
• Strategy
• Financials

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RAZADYNE 2007 BP vs. 2006 OE
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RAZADYNE 2007 Forecast Sensitivities
Base Case Forecast 181 Million
Base Assumptions
None
Demand trend
None
PCP reduced sales-force impact
Generic Aug 07
None
United / Pacific Merger Contract Unfav.
United / Pacific Merger Contract Favorable
None
Aricept Severe Higher Sales Impact
Aricept Severe -3.7MM
Aricept Severe Lower Sales Impact
4 Price Increase
6 Price Increase
0 Price Increase
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RAZADYNE Business Plan Review

• October 13, 2006