Facility Information CRANBURY, NEW JERSEY Facility Highlights Economic / Social Sustainability
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1 cility Information RANBURY, NEW JERSEY ORLDWIDE MEDICINES cility Highlights e Cranbury Distribution Center distributes domestic and international products for the Worldwide Medicines Gr O as well as Bracco Diagnostics, and NovoNordisk. e facility is one of two domestic distribution facilities servicing the US and international marketplace with the ot ated in Mt. Vernon, IN. It is part of the North American Logistics group which is headquartered in Cranbury, N. this location are the US Customer Service, Global Transportation and Regulatory Compliance & EHS function onomic / Social Sustainability
2 BRISTOL MYERS SQUIBB RESEARCH Groundbreaking Research Reveals That One in Four Type II Diabetes Patients Have Heart Disease But Show No Symptoms American Society of Nuclear Cardiology Late-Breaking Clinical Data Presented Sunday, September 29, 8:30-10:00 am; - Early Findings Demonstrate Cardiac Imaging with Cardiolite(R) Identifies 'Silent' Heart Disease Early in Patients with Diabetes, Potentially Saving Many from Premature Heart Attack or Death - Monday September 30, 9:48 am ET BALTIMORE, Md., Sept. 30 /PRNewswire/ -- The preliminary results of a groundbreaking study show that non-invasive imaging with Cardiolite (Kit for the Preparation of Technetium Tc99m Sestamibi for Injection) can identify "silent" coronary artery disease (CAD) at an early stage in diabetes patients -- a high-risk population who often do not exhibit any apparent symptoms of heart disease. If confirmed, these research findings, presented yesterday at the Annual Scientific Session of the American Society of Nuclear Cardiology (ASNC), could pave the way for evidence-based guidelines for selectively screening these at-risk patients, potentially allowing for earlier intervention and saving many from premature heart attack or death. Heart disease is the leading cause of death for the nearly 16 million Americans with type II diabetes -- whose risk is two to four times that of the general population. Identifying coronary artery disease in these patients is difficult because many have no apparent "chest pain" symptoms. As a result, this so-called silent ischemia may go undiagnosed until symptoms of late-stage heart disease occur, including heart attack and cardiac death. "These preliminary results are very important because recent studies have shown that patients with diabetes are still not fully aware of their risk for heart disease despite the fact that it is their leading cause of reduced life expectancy," said Frans J. Th. Wackers, M.D., professor of medicine, Yale University School of Medicine, who designed the study. "If these findings are confirmed, selectively screening these patients early with Cardiolite can help identify CAD in patients with no outward symptoms, potentially protecting many from more severe coronary events." The study -- Detection of Ischemia in Asymptomatic Diabetics (DIAD) -- is the first multi center study to detect "silent" ischemia (heart disease) in patients with diabetes. Today's preliminary analysis of 522 patients represents initial results of this two-year study. In this data set, twenty- six percent of patients had an abnormal Cardiolite (Kit for the Preparation of Technetium Tc99m Sestamibi for Injection) test suggesting "silent" CAD. Of those exhibiting an abnormal finding, 83 percent (114 patients) were found to have abnormal blood flow, while the remaining 17 percent (23 patients) were found to have other abnormal findings such as depressed left ventricular ejection fraction, another measure of heart health. These results were made more remarkable by the absence of CAD symptoms in all patients tested. "As the doctors who see patients with diabetes every day, we know that many don't display the classic symptoms of heart disease, making it difficult to detect ischemia before the onset of advanced and symptomatic disease," said Paul S. Jellinger, MD, former president of the American Association of Clinical Endocrinologists. "Given this significant diagnostic challenge and the disproportionate threat CAD poses to this patient population, identifying tests that assist in detecting heart disease at an early stage are critical. Needless to say, today's results are an encouraging first step." The prospective study involves more than 1,000 patients with type II diabetes aged 50 to 75 years with no known coronary artery disease. Enrolled patients were randomized to receive Cardiolite, the
3 leading stress myocardial perfusion imaging (stress MPI) agent, and five year follow-up, or follow-up alone. Prior studies have shown Cardiolite to be an accurate predictor of major cardiac events in patients with diabetes known to have heart disease. Stress MPI is a nuclear cardiology procedure that uses a radiopharmaceutical, such as Cardiolite, to measure blood flow to various structures of the heart. Patients undergo a Cardiolite study both to diagnose heart disease as well as to assess their risk for a future cardiac event. In patients with known or suspected coronary artery disease, a normal stress Cardiolite study is associated with a less than one percent chance that the patient will experience a hard cardiac event (death or myocardial infarction) in the next 12 months. Bristol-Myers Squibb Medical Imaging, Inc., the makers of Cardiolite, has provided more than $2 million in a research grant to Yale University School of Medicine for the two-year study. The company also supplies product and technical support. Fujisawa Healthcare, Inc. also provides funding for the trial. "Our company is proud of its leadership role as both an innovator in the area of cardiovascular imaging and therapies for the management of type II diabetes," said Peter Gardiner, MD, vice president, Medical Sciences, Bristol- Myers Squibb Medical Imaging, Inc. "Our support of the DIAD study is just one example of our strong commitment to enhancing and extending patients' lives through important clinical research designed to optimize the management of cardiac patients." Yale University School of Medicine serves as the study's lead investigation site. The other investigative sites are: University of Alabama, Birmingham, AL; Cardiology Consultants, Calgary, Alberta, Canada; University of North Carolina at Chapel Hill, Chapel Hill, NC; University of Virginia, Charlottesville, VA; Midwest Cardiology, Columbus, OH; Hartford Hospital, Hartford, CT; Kansas City Cardiology Associates, Kansas City, MO; University of Montreal, Montreal, QUE, Canada; Tulane University, New Orleans, LA; Soundview Research Associates, Norwalk, CT; Maine Cardiology Associates, Portland, ME; University of Rochester, Rochester, NY; Medstar Clinical Research Center, Washington, DC. Cardiolite (Kit for the Preparation of Technetium Tc99m Sestamibi for Injection) is the leading cardiac stress imaging agent in the United States. It is the only heart imaging agent that is FDA-approved to both non-invasively evaluate the heart's pumping ability (function) and gauge the amount of blood flow to the heart muscle itself (perfusion) -- and thus is used to quickly assess whether a patient has already had a heart attack or is at risk for one in the future. Cardiolite is also the only technetium agent in the U.S. approved for acquiring diagnostic information for use in patient management decisions. Exercise and pharmacologic stress testing should be performed only under the supervision of a qualified physician. Cardiolite has been rarely associated with acute severe allergic events of angioedema and uticaria. The most frequently reported adverse events include headache, chest pain/angina, ST segment changes on ECG, nausea and abnormal taste and smell. Bristol-Myers Squibb Medical Imaging, Inc. is a worldwide leader in cardiovascular imaging whose mission is to extend and enhance human life by offering innovative approaches to see deeper into the heart and vasculature. Bristol-Myers Squibb Medical Imaging, Inc. is a wholly-owned subsidiary of Bristol-Myers Squibb Company (NYSE: BMY - News), a $19 billion pharmaceutical and related health care products company. Cardiolite is a registered trademark of Bristol-Myers Squibb Medical Imaging, Inc.
4 Who are the competitors?? Existing Firms? New Entrants? Substitute Products? Suppliers? Customers What are the strategies ENGINEERING 9 Strategic Planning - Competition 1? Overall Cost Leadership? Product Differentiation? Focus on Market Segment? Don't be "Stuck in the Middle" How To Analyze Competitors Look at:? Goals? Risk Adversity? Capabilities? In general, collect information, and be alert for signals. What competitive moves are possible?? Commitment? Evolution of product or marketing? Vertical Integration? Capacity Expansion? Enter New Business 1 Michael Porter, Competitive Strategies - Techniques for Analyzing Industries and Competition Free Press, New York 1980.
5 COMPETITIVE ADVANTAGE 2 1. INDUSTRY STRUCTURAL ADVANTAGES a. level of competition b. loyalty of customer c. ease of switching products d. profit margins e. product protection, ie. patents. 2. Compare Pharmaceuticals versus Airlines 3. How does a firm create competitive advantage?? What does it do that is unique and valuable and can t really be replaced exactly by others?? What is its added value? 4. How does a firm create added value?-an examination of its activities. CONCERNS: Creating versus Sustaining Value: What in the structure of the value allows it to remain over time? a. neutralize unattractive features of industry b. capitalize on good features c. examine how a leader might restructure the industry without diminishing their advantage? Customer willingness to pay is symmetrical to Supplier s willingness to accept. This means that value can be achieved both from downstream customers and execution of activities? Competitive advantage derives essentially from lack of alternatives on the purchasers behalf. In other words, scarcity.? Value derives when difference in willingness to pay is incrementally higher than increase in cost of production. VALUE CHAIN 2 Based on the article Creating competitive advantage by P.Ghemawat and J. Rivkin
6 ? Design, produce, sell, deliver and service activities incur and thus define costs as well as value for which a customer will pay.? Analysis by activity can determine where a company does not perform efficiently. Value chain is used to do the analysis.? Primary Activities: inbound logistics, operations, outbound logistics; marketing sales and after sale service.? Support Activities: inputs, technology and human resources, firm infrastructure.? Determine willingness to pay relative to competition
7 The Novo Group is a family of independent companies with a common history and shared values. All Novo Group companies share and benefit from the governance principles stated in the Novo Group Charter, including the Novo Way of Management. The Novo Nordisk Foundation A profit-making foundation. It provides a stable basis for Novo Group s business and research activities. Novo A/S, the Foundation owns all A shares in Novo Nordisk A/S and Novozymes A/S. Supports scientific, medical humanitarian and social causes, other Danish research. Novo A/S is an investment and holding company owned 100% by the Novo Nordisk Foundation with the purpose of managing the Novo Nordisk Foundation's funds and investment in companies inside and outside the bioindustrial and biopharmaceutical area. In addition, Novo A/S drives and monitors the implementation of The Novo Way of Management in Novo Group companies. Novo Nordisk A/S is a global niche pharmaceutical company with biotechnology expertise. In diabetes care, Novo Nordisk has the leading position worldwide, both in terms of research and development pipeline, product range and geographical coverage. With the introduction of NovoSeven, a unique preparation for the treatment of haemophiliacs who do not respond to coagulation factor replacement therapy due to antibody formation, Novo Nordisk has added a new growth area. In addition, Novo Nordisk produces and markets leading products for growth disorders and hormone replacement therapy. Novozymes A/S biology-based world leader in enzymes. The company is the market leader in its field developing, producing and selling enzymes for industrial use to the three market segments: technical, food and animal feed. Novozymes has pioneered virtually all new product developments in the industry and remains at the forefront of the enzyme market development, using a fully integrated, proprietary biotechnology platform for the discovery and delivery of enzyme products.
8 Company characteristics in the Novo Group Present as well as future companies in the Novo Group must demonstrate willingness, ability and resolve to meet the following six criteria:? Company products and services make a significant difference in improving the way people live and work.? The company is perceived to be the innovator - in technology, in products, in services and/or in market approach.? Company activities, practices and deliverables are perceived to be economically viable, environmentally sound and socially fair.? The company is among the best in its business and a challenging place to work.? Living the Novo values and business conduct principles as defined in the Novo Way of Management.? Delivering competitive financial performance. Values Accountable Each of us shall be accountable - to the company, ourselves and society - for the quality of our efforts, for contributing to our goals and for developing our culture and shared values. Ambitious We shall set the highest standard in everything we do and reach challenging goals. Responsible We shall conduct our business in a socially and environmentally responsible way and contribute to the enrichment of the communities in which we operate. Engaged with stakeholders We shall seek an active dialogue with our stakeholders to help us develop and strengthen our businesses. Open and honest Our business practices shall be open and honest to protect the integrity of the Novo Group companies and of each employee. Ready for change We must foresee change and use it to our advantage. Innovation is key to our business and therefore we will encourage a learning culture for the continuous development and improved employability of our people. Commitments Financial responsibility
9 We will work to continuously improve our financial performance by setting high objectives for growth and value creation and deliver competitive performance in these areas. We will maintain an open dialogue with our stakeholders and comply with international reporting standards. Environmental responsibility We will work to continuously improve our environmental performance by setting high objectives and integrating environmental and bioethical considerations into our daily business. We will maintain an open dialogue with our stakeholders and report annually on our environmental performance.? We subscribe to the International Chamber of Commerce's Charter for Sustainable Development? We support the United Nations Convention on Biological Diversity. Social responsibility We will work to continuously improve our social performance by setting high objectives and integrating social, human rights and health & safety considerations into our daily business. We will maintain an open dialogue with our stakeholders and report annually on our social performance.? We support the United Nations Universal Declaration of Human Rights
10 NOVO NORDISK CURRENT ORGANIZATIONAL SETUP The Novo Group
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