Science For A Better Life. 26th Annual JPMorgan Healthcare Conference. Arthur J. Higgins CEO Bayer HealthCare

Transcription

1 Science For A Better Life 26th Annual JPMorgan Healthcare Conference Arthur J. Higgins CEO Bayer HealthCare January

2 Important Information This presentation may contain forward-looking statements which are based on current assumptions and forecasts made by Bayer Group management. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. These factors include those discussed in our public reports which are available on our website. The company assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments.

3 Bayer HealthCare has Defined its Aspirations Be one of the world s leading diversified healthcare companies Strengthen Pharma with focus on specialty Aspire for leading position in each market segment in which we compete and achieve above market growth and profitability JPMorgan Healthcare Conference Arthur J. Higgins Jan 7, 2008 Page 1 We are on Track to Deliver Against these Aspirations and We are Successfully Executing our Strategy Achievements Delivering growth and performance We are ranked 2-4 in all businesses, except pharma (no. 6 in specialty) All divisions out-performed the market in 2006, with double-digit bottom line growth Strong performance continued in 07, on track to reach financial/operational targets Improving our portfolio Acquired Schering, 70% of Pharma revenues generated by specialty products Strengthened Consumer Health: Roche OTC, Metrika, Citracal Divested professional diagnostics and plasma businesses Developing new growth opportunities Developed a late stage pipeline with the potential to transform the business Aggressive growth strategy for emerging markets in place Inlicensed VEGF-Trap-Eye, rthrombin, Amikacin inhale JPMorgan Healthcare Conference Arthur J. Higgins Jan 7, 2008 Page 2

4 All Businesses Outperformed Their Markets in Fiscal Sales Δ %yoy* 2006 market growth Bayer growth vs. market Pharmaceuticals (pro-forma) 10.2bn 10% 7% + 3pp Animal Health 0.9bn 6% 4% + 2pp Consumer Care Diabetes Care 2.5bn 0.8bn 8% 4% + 4pp 13% 6% + 7pp Total HealthCare 11.7bn 10% 6% + 4pp *currency and portfolio adjusted JPMorgan Healthcare Conference Arthur J. Higgins Jan 7, 2008 Page 3 Substantial Improvement in Profitability in Both Pharma and Consumer Health Businesses Underlying EBIT in million Δ% vs ,715 HealthCare +140% 1, Consumer Health +37% 1, * * Reported EBITDA margin Pharmaceuticals +535% Underlying EBITDA margin As reported in respective year 2002 as reported in as reported in 2004 JPMorgan Healthcare Conference Arthur J. Higgins Jan 7, 2008 Page 4

5 Strong Performance Continued in M 07 Sales Earnings In million, Δ% y-o-y Consumer Health +6.2% (+10%) Pharma +60% (+8%) Underlying EBITDA 2, % Underlying EBIT 3,359 7,648 1,817 1, , % +6% 1, % 1,254 1, % % HealthCare 11,007m, +39% 9M 06 9M 07 9M 06 9M 07 ( ) Currency & portfolio adjusted JPMorgan Healthcare Conference Arthur J. Higgins Jan 7, 2008 Page 5 Underlying EBITDA margin Underlying EBIT margin HealthCare Strategic Objectives Successfully integrate Schering and build a world-leading specialty pharmaceuticals business Increase return on R&D investments through improved productivity, higher quality and focus on fewer therapeutic research areas and assets Maximize value of key pipeline assets, especially Nexavar and Rivaroxaban Further invest in our high growth Consumer Health business Fully exploit commercial potential of leadership positions of key products and brands Pursue external growth opportunities to complement pipeline and portfolio and to strengthen HealthCare overall JPMorgan Healthcare Conference Arthur J. Higgins Jan 7, 2008 Page 6

6 Integration of Schering is Running Faster Than Planned and Creating More Synergies than Anticipated Savings by function Procurement & Manufacturing ~20% ~15% ~35% R&D Synergy target raised from originally 700m to > 800m primarily from R&D and G&A 80% expected to be realized by yearend 2008 Marketing & Sales ~30% Net integration costs* of approx. 1bn** assumed G&A * excluding work-down of step up of inventories and impact of purchase price allocation ** 2006: 179m, 2007e: m JPMorgan Healthcare Conference Arthur J. Higgins Jan 7, 2008 Page 7 Focus on Four Therapeutic Research Areas Bayer Schering June 2005 June 2007 Focus based on Oncology Bayer Schering Pharma Therapeutic research Cardiology Cardiology area assessment Hematology Oncology Competitive resources (internal & external) Oncology Women s Healthcare Synergies across Gynecology Diagnostic Imaging therapeutic areas Andrology Continued applied research and life cycle Dermatology management in Immunology -hemophilia -MS Diagnostic Imaging -dermatology Leveraging our learnings in improving R&D efficiency JPMorgan Healthcare Conference Arthur J. Higgins Jan 7, 2008 Page 8

7 Our Focused Approach is Paying off Pipeline Advances During 2H 2007 We can report the following advancements since our HealthCare Day in June: 3 approvals Nexavar HCC Campath 1 st line chronic B-CLL Primovist MRI (J) 3 submissions for regulatory approval Xarelto VTE prevention (EU) DUB-OC oral contraception (EU) Zevalin: 1st line consolidation foll. Lymphoma (EU) 5 new phase III projects 5 new phase II projects 2 new phase I projects JPMorgan Healthcare Conference Arthur J. Higgins Jan 7, 2008 Page 9 Pipeline Changes During 2H 2007 Status Change in Pipeline Project Indication Submitted Approved Approved Approved Newly submitted Newly submitted Newly submitted Nexavar Campath Primovist Xarelto DUB-OC Zevalin HCC 1st line chronic B-CLL MRI (J) VTE Prevention (EU) Oral contraception (EU) 1st line consolidation foll. Lymphoma (EU) Phase III Phase II Phase I Added - New indication Progressed from Ph II Progressed from Ph II Progressed from Ph II Progressed from Ph I Deleted - Failed Progressed from Ph I Progressed from Ph I Added - New project Added - New project Added - New project Added - Progr. from precl. Added - Progr. from precl. Xarelto VEGF Trap-Eye Alemtuzumab Gadovist Aspirin i.v. Betaferon New sgc Stimulator Cipro inhaled E2-DRSP OC+DHEA Valette plus novel SERD Dual Factor IIa/Xa Inh. Medical ill Wet AMD Multiple Sclerosis MRI ACS High-Dose (BEYOND) Heart Failure Lung Infection Oral contraception (OC) OC + Sexual Dysfunction OC Breast Cancer ACS JPMorgan Healthcare Conference Arthur J. Higgins Jan 7, 2008 Page 10

8 Our R&D Pipeline Provides a Balanced Mix of NME and LCM Opportunities Phase I Phase II Phase III Submitted No. of projects PH in COPD Elastase Inhibitor Pancreatic Cancer / Melanoma L19 Interleukin 2 Cancer L19-SIP Colorectal Cancer L19-TNFalpha Breast Cancer Novel SERD ACS Dual FIIa/Xa Inhibitor Hypogonadism Treatment ef-ment Gastro IBD Lipoxin DME VEGF Trap-Eye Alzheimer PET Imaging AV1/ZK Cancer DAST Inhibitor Menopausal Management ERß Agonist Fast Dissolving Tablet Levitra A fib / Stable Angina Adenosine A1 Agonist Acute Heart Failure sgc Activator Pulmonary Hypertension / CTEPH sgc Stimulator ACS Rivaroxaban RCC 1st / 3rd line L19 Interleukin 2 Breast Cancer ZK-PRA Lung / Ovar / Breast / Prostate Sagopilone (ZK-EPO) Parkinson s Disease Spheramine Heart Failure sgc Stimulator Gram-neg. VA Pneumonia Amikacin inhaled (NKTR-061) Liposomal Formulation Kogenate Breast Cancer Nexavar Additional Indications Nexavar Fertility Control FC Patch Fidencia Fertility Control Valette low New Indications Levitra Lung Infection Cipro inhaled OC E2+DRSP OC+SD OC+DHEA OC Valette plus Medical ill Rivaroxaban SPAF Rivaroxaban VTE Treatment Rivaroxaban wet AMD VEGF Trap-Eye Melanoma, 1st line Nexavar NSCLC, 1st line Nexavar Multiple Sclerosis Alemtuzumab Bone Met. Prevention in Breast Cancer Bonefos Dysmenhorrea (J) YAZ Fertility Control YAZ Flex Menorrhagia Mirena Menopausal Management Angeliq low-low Endometriosis Visanne Fertility Control Yasmin plus / YAZ plus Fertility Control LCS (ULD LNG) CT Ultravist 370 New Indications (US) Avelox 1st + 2nd line aggr. NHL Zevalin ACS Aspirin i.v. MRI (USA,J); pediatric Gadovist 20 9 CKD (J) Fosrenol Bleeding control rthrombin VTE Prevention Rivaroxaban VMS Menostar transdermal HRT (J) E2 / LNG MRI (J) Magnevist MRA PID / New Indications (EU) Avelox 1st line indolent NHL Zevalin OC DUB-OC (E2/DNG) New Molecular Entities (NME) Life Cycle Management (LCM) Status as of Dec JPMorgan Healthcare Conference Arthur J. Higgins Jan 7, 2008 Page 11 Our Late-Stage Pharma Pipeline Has the Potential to Transform the Business Project Indication Estimated launch Peak sales potential (in m) Nexavar Renal Cell Cancer (Kidney Cancer) Launched 500 Hepatocellular Cancer (Liver Cancer) Launched (EU,NA,J) Non-Small Cell Lung Cancer 2009 >750 Breast Cancer >2012 >750 Rivaroxaban VTE Prevention 2009 Medical ill Filing expected 2011 DVT Treatment 2011 >2,000 Stroke Prevention in AFIB 2011 Acute Coronary Syndrome >2012 VEGF Trap-Eye Wet AMD Alemtuzumab Multiple Sclerosis ,000 Yasmin/Yaz incl. Oral contraception; PMDD; Acne Launched >1,000 Life Cycle Mgmt. Kogenate incl. Life Cycle Mgmt. Hemophilia A incl. Kogenate Liposomal JPMorgan Healthcare Conference Arthur J. Higgins Jan 7, 2008 Page 12 Launched 2011/2012 >1,000

9 Nexavar A Franchise Building Opportunity Established global brand as targeted cancer therapy Dual mechanism antiangiogenic & antiproliferative Established efficacy in two tumor types Approved for treatment of renal cell (RCC) and hepatocellular carcinoma (HCC) Unprecedented results in HCC 44% improvement in overall survival Manageable side-effect profile, well-suited for combination therapy >170 clinical studies ongoing JPMorgan Healthcare Conference Arthur J. Higgins Jan 7, 2008 Page 13 Expanding Nexavar s Reach Into Large Tumor Types 1000 Cases per year New Cases Deaths Lung Breast Colorectal Stomach Prostate Liver Cervix Uteri Bladder Kidney MM P III P II Launched Launched P III Source: Globocan 2002, ranked by incidence JPMorgan Healthcare Conference Arthur J. Higgins Jan 7, 2008 Page 14

10 Xarelto (Rivaroxaban) Potentially Redefining the Market for Anticoagulants An ideal anticoagulant should have Xarelto has: Oral administration Once daily dosing Predictability Wide therapeutic window Minimal food/drug interactions Convenient use both in and out of hospital Key issue to enhance compliance in the target population Safe and effective regulation of coagulation from the first dose and throughout therapy Broad safety margin at a wide range of effective doses Ease of use with concomitant medication and diet No monitoring JPMorgan Healthcare Conference Arthur J. Higgins Jan 7, 2008 Page 15 No need for laboratory monitoring saves healthcare costs through fewer hospital / physician visits and patients time based on current knowledge Anticoagulants A Large Unmet Medical Need Market Medical Need 2006 $5.3bn 2016e $15.1bn 0.6bn 0.7bn 0.2bn 7.8bn 3.8bn 4.6bn 2.4bn 0.1bn 0.2bn LMWHs UFH Vitamin K antag. Other injectables Novel oral anticoagulants Approximately 6.5 million people worldwide are affected annually by venous thromboembolism (VTE) Up to 600,000 people are hospitalized in the U.S. each year for deep vein thrombosis (DVT) Approx. 8.5 million AFIB patients in Europe, Japan and U.S. (prevalence) AFIB patient has a 5-fold higher risk of stroke events Source: IMS JPMorgan Healthcare Conference Arthur J. Higgins Jan 7, 2008 Page 16

11 Pivotal Phase III Data Show Superior Efficacy of Xarelto over Enoxaparin* Double-blind, randomized, controlled Phase III study for VTE Prevention in elective total knee or hip replacement patients vs. enoxaparin Xarelto consistently demonstrated superior efficacy vs. existing standard of care Xarelto has shown a safety profile with low bleeding rates similar to enoxaparin More than 14,000 patients have been exposed to Xarelto to date - no evidence of liver signal attributable to Xarelto observed No evidence of liver signal attributable to Xarelto in 2,400 patients treated for 3-6 months More definite statement on safety can be made upon availability of data from long term exposure to Xarelto Clinical data are building further confidence but still some way to go in the clinical development program *Published at ASH in Dec Submitted in EU in October for VTE prevention after major orthopedic surgery of the lower limbs JPMorgan Healthcare Conference Arthur J. Higgins Jan 7, 2008 Page 17 The RECORD 1-3 Studies Show Superior Efficacy over Established Standard of Care Indication VTE Prevention in patients undergoing total hip replacement VTE Prevention in patients undergoing total hip replacement VTE Prevention in patients undergoing total knee replacement Trial Design 4,541 patients 10mg od* Xarelto for 5 weeks vs. 40mg od* enoxaparin for 5 weeks 2,509 patients 10mg od* Xarelto for 5 weeks vs. 40mg od* enoxaparin for days followed by placebo 2,531 patients 10mg od* Xarelto for days vs. 40mg od* enoxaparin for days Efficacy Xarelto Enoxaparin p Xarelto Enoxaparin p Xarelto Enoxaparin p Composite of DVT, PE and all cause mortality Rel. risk reduction Major VTE Rel. risk reduction 1.1% 3.7% < % 0.2% 2.0% < % 2.0% 9.3% < % 0.6% 5.1% < % 9.6% 18.9% < % 1.0% 2.6% % Safety Xarelto Enoxaparin p Xarelto Enoxaparin p Xarelto Enoxaparin p Major bleeding Non-major bleeding 0.3% 0.1% % 5.8% % 0.1% % 5.5% % 0.5% % 4.4% *od = once daily JPMorgan Healthcare Conference Arthur J. Higgins Jan 7, 2008 Page 18

12 Comprehensive Late-Stage Development Program for Xarelto in Place Trial status Indication Trial design Dosing Guidance Phase III VTE Prevention in patients undergoing major orthopedic surgery >12,000 pts, hip replacement or knee replacement vs. standard treatment (enoxaparin) 10mg once daily for 5 weeks (hip) or 14 days (knee) Filed in EU; Regulatory filing planned in U.S Phase III VTE Treatment and longterm secondary prevention ~7,500 pts, vs. standard treatment 20mg once daily main dose, treatment duration up to 12 months and beyond Regulatory filing expected in 2010 Phase III Prevention of stroke in patients with atrial fibrillation (SPAF) ~14,000 pts, non-inferiority vs. standard treatment (Warfarin) 20mg once daily main dose, treatment duration months Regulatory filing expected in 2010 Phase III *expected VTE Prevention in hospitalized acute medically ill patients ~8,000 pts, vs. standard treatment (enoxaparin)* 10mg once daily for 5 weeks* Regulatory filing expected in 2011 Phase II Secondary prevention of fatal and non-fatal cardiovascular events in patients with acute coronary syndrome (ACS) ~3,500 pts, on top of standard treatment Dose finding study, twice and once daily dosing for up to 6 months Regulatory filing currently expected in 2012 JPMorgan Healthcare Conference Arthur J. Higgins Jan 7, 2008 Page 19 Alemtuzumab (Campath) in B-Cell Chronic Lymphocytic Leukemia Campath How does Campath work? Humanized monoclonal antibody directed against the CD52 receptor found on B and T cells Treatment produces acute cytolysis in CD52 bearing cells via 3 immunemediated reactions Launched 2001 for treatment of B-Cell chronic Lymphocytic Leukemia (3rd line) Complement fixation CD52 Antibodydependent Cell-mediated cytotoxicity Induction of apoptosis Approved by FDA as 1st line single agent B-CLL treatment Campath Approved in EU for 1st line therapy of B- CLL if fludarabine combination therapy is not appropriate JPMorgan Healthcare Conference Arthur J. Higgins Jan 7, 2008 Page 20

13 Alemtuzumab Has Demonstrated Best Treatment Effects Ever Seen in a Controlled MS Trial so far In a two-year phase II interim analysis Alemtuzumab was significantly more effective than Rebif in suppressing MS relapses and slowing accumulation of disability in MS patients: Alemtuzumab dose Reduction in risk for relapse vs. Rebif Reduction in risk for progression of clinically significant disability 12 mg 72% (p<0.0001) 88% (p<0.0008) Significant 24 mg 87% (p<0.0001) 66% (p<0.0098) Significant New three-year top-line results presented at ECTRIMS 2007 were statistically significant confirming all trends of the one-year and two-year analyses, including the positive impact on disability Patients taking alemtuzumab experienced at least a 73 percent reduction in the risk for relapse and at least a 70 percent reduction in the risk for progression of clinically significant disability after three years of follow up Formal database lock of CAMS223 and report on further data expected in 2008 Immune Thrombocytopenic Purpura (ITP) 36 months update 6/216 patients treated with alemtuzumab developed ITP during the study No new cases of ITP in past one year Reduction in disability compared with pretreatment baseline (EDSS score) JPMorgan Healthcare Conference Arthur J. Higgins Jan 7, 2008 Page 21 Alemtuzumab Phase III in MS Initiated CARE-MS: Comparison of Alemtuzumab and Rebif Efficacy in MS CARE-MS I Early active RRMS Up to 525 treatment naïve patients Alemtuzumab 12mg vs. Rebif 44mcg CARE-MS II RRMS in patients previously treated with disease modifying therapy Approx. 1,200 patients Alemtuzumab 12mg and 24mg vs. Rebif 44mcg Randomized, open label, active control studies Treatment Duration: 2 years after last patient is enrolled Primary Outcome Measure: Time to sustained accumulation of disability (SAD) Relapse Rate Overall efficacy and safety observed in phase II study to be established and confirmed in the phase III program JPMorgan Healthcare Conference Arthur J. Higgins Jan 7, 2008 Page 22

14 Our Mid-Stage Pipeline is also Highly Attractive LCS Project Gadovist Aspirin i.v. DAST Inhibitor ZK-EPO sgc Stimulator Spheramine sgc Activator Adenosine Agonist Rivaroxaban Indication Fertility Control MRI (U.S.) Acute Coronary Syndrome Solid Tumors Solid Tumors Pulmonary Hypertension Parkinsons Disease Acute Heart Failure Angina pectoris, AFIB Acute Coronary Syndrome Peak sales potential (in m) < ,000 Nexavar Breast Cancer JPMorgan Healthcare Conference Arthur J. Higgins Jan 7, 2008 Page 23 Pipeline Progresses Dynamically: Numerous Projects Expected To Enter Phase III by 2009 Project Indication Expected start of phase III Estimated launch FC Patch Contraception 1H 2008 > 2012 Vardenafil (ODT) Erectile Dysfunction 1H 2008 Tbd. rthrombin Surgical Hemostasis (EU) 2H Amikacin inhaled Ventilator associated pneumonia 2H Vardenafil Overactive Bladder 2H sgc Stimulator Pulmonary Hypertension 2H Ciprofloxacin inhaled Bacterial Infections 1H ZK-EPO Solid Tumors 1H 2009 > 2012 Kogenate liposomal Hemophilia A 2H Spheramine sgc Activator Rivaroxaban Parkinsons Disease Acute Heart Failure Acute Coronary Syndrome 2H H H > 2012 Nexavar Breast Cancer 2H 2009 > 2012 JPMorgan Healthcare Conference Arthur J. Higgins Jan 7, 2008 Page 24

15 Continue to Further Strengthen our Pipeline Through Improved Inlicensing Capabilities rthrombin (ZymoGenetics) Recombinant version of thrombin (Bloodclotting factor IIa) Indication: surgical hemostasis Comparable efficacy to bovine-derived thrombin, reduced immunogenicity demonstrated in phase 3 studies FDA approval pending Bovine thrombin is used in more than 1 million surgeries in the U.S. per year Near-term revenue potential for our hematology business Amikacin inhale (Nektar) Proprietary drug delivery technology for inhalation of antibiotic amikacin deep into the lung Indication: Ventilator associated pneumonia Unmet medical need: significant morbidity and mortality with very limited treatment options today Currently in phase II clinical trials, phase III expected to start in 2008 JPMorgan Healthcare Conference Arthur J. Higgins Jan 7, 2008 Page 25 Global Leader in Specialty Pharmaceuticals and Consumer Health Pharmaceuticals 10.2bn (pro forma) Rx specialty pharmaceuticals, # 6 with leading positions in key therapeutic categories 71% 17% 6% 6% Consumer Care 2.5bn OTC pharmaceuticals; # 2 with some of the world s most recognized brands Diabetes Care 800m blood glucose meters # 3-4 with new and improved products Animal Health 900m veterinary medicines # 4 with leading growth and profitability Key figures 2006 Sales: 14.4bn (pro-forma) EBITDA underlying: 2,613m (margin 22.3%) Employees: ~51,000 JPMorgan Healthcare Conference Arthur J. Higgins Jan 7, 2008 Page 26

16 Leading Growth in Consumer Health Consumer Care Diabetes Care Animal Health Capitalize on consistent market growth outperformance Growth through building strong brands Growth through innovation Rx to OTC switches Expansion into high growth regions Turnaround strategy resulting in market leading growth Investing in brand-building, entering new markets Shortening life cycles: >75% of products younger than 3 years by 2009 Pursuing partner of choice approach Build on benchmark performance Excellent life cycle opportunities including new innovative formulations Rich pipeline target is to generate 25% of sales with new products by 2010 Target 2%pts. above market growth expected at 3 4% Target 2 3%pts. above market growth expected at 6 7% Target 2%pts. above market growth expected at 3 4% JPMorgan Healthcare Conference Arthur J. Higgins Jan 7, 2008 Page 27 Milestones & Outlook JPMorgan Healthcare Conference Arthur J. Higgins Jan 7, 2008 Page 28

17 Milestones 2007 Timing Milestone Nexavar: HCC submissions in U.S., EU and J Nexavar: Start of phase II program in metastatic breast cancer Nexavar: HCC approval in EU VEGF Trap-Eye: Start of phase III program in wet AMD Xarelto: Presentation of RECORD 3 results at ISTH Xarelto: EMEA regulatory filing for VTE prevention after major orthopedic surgery Xarelto: Top line findings of RECORD1 and RECORD2 studies JPMorgan Healthcare Conference Arthur J. Higgins Jan 7, 2008 Page 29 Milestones 2007 continued Timing 2H 2007 Milestone Alemtuzumab in MS: Start of phase III program Alemtuzumab: Final results of phase II CAMMS223 study Betaseron: BEYOND data Xarelto: Presentation of full data set of additional RECORD program at ASH conference (December 8-11, 2007) VEGF Trap-Eye: Start of phase II program in DME planned Research: Transfer of 3 NMEs into the clinic Research: Delivery of Proof-of-Concept results for 4 projects Kogenate-Liposomal: start of phase II study JPMorgan Healthcare Conference Arthur J. Higgins Jan 7, 2008 Page 30

18 Milestones 2008 Timing Milestone 2008 rthrombin: U.S. approval expected (PDUFA date January 17, 2008) 1H H 2008 Vardenafil ODT: Start of Phase III expected FC Patch: Start of Phase III (Contraception) expected 2008 Nexavar: Maturation of Phase III data in NSCLC Mid 2008 DUB-OC: Filing U.S. in OC planned Mid 2008 Rivaroxaban: FDA regulatory filing for marketing authorization for VTE prevention after major orthopedic surgery planned 2008 Bonefos: Data from the NSABP study expected 2H H 2008 Visanne: Filing for endometriosis in EU planned YAZ: Launch EU expected JPMorgan Healthcare Conference Arthur J. Higgins Jan 7, 2008 Page 31 Milestones 2008 / 2009 Timing 2H H H H H 2008 End 2008 / 2009 Early H H H 2009 Milestone rthrombin: Start of Phase III (Surgical Hemostasis EU) expected sgc Stimulator: Start of Phase III (Pulmonary Hypertension) expected Vardenafil: Start of Phase III (OAB) expected Amikacin inhaled: Start of Phase III expected DAST-Inhibitor: Start of Phase II (Solid Tumors) expected Nexavar: Maturation of Phase III data in melanoma (ECOG study) Rivaroxaban: Data from Phase II ATLAS study (ACS) expected Kogenate-Liposomal: Interim data from Phase II study expected ZK-EPO: Start of Phase III (Solid Tumors) expected Ciprofloxacin inhaled: Start of Phase III (Bact. Infections) expected JPMorgan Healthcare Conference Arthur J. Higgins Jan 7, 2008 Page 32

19 Milestones 2009 continued Timing Milestone 2009 Nexavar: Launch in NSCLC expected 2H H H H H H 2009 DUB-OC: Launch (OC) planned EU Rivaroxaban: Start of Phase III (ACS) expected sgc Activator: Start of Phase III (Acute Heart Failure) expected Kogenate liposomal: Start of Phase III expected Spheramine: Start of Phase III (Parkinson s Disease) expected Nexavar: Start of Phase III (Breast Cancer) expected 2009/2010 rthrombin: Filing in EU expected JPMorgan Healthcare Conference Arthur J. Higgins Jan 7, 2008 Page 33 HealthCare Profitability Targets Underlying EBITDA margin targets 2007 HealthCare > 25% (previously 25%) 2009 HealthCare around 28% Aspire to further improve profitability longer-term JPMorgan Healthcare Conference Arthur J. Higgins Jan 7, 2008 Page 34