Teva Strategy Overviews24.q4cdn.com/720828402/files/doc_downloads/doc_events/Presentation_28.pdfTeva’s Growth Strategy 2008-2012 Shlomo Yanai President and CEO Teva Pharmaceutical

Teva Strategy OverviewFebruary 21, 2008

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TODAY�S PRESENTATION CONTAINS FORWARD-LOOKING STATEMENTS, WHICH EXPRESS THE CURRENT BELIEFS AND EXPECTATIONS OF MANAGEMENT. SUCH STATEMENTS INVOLVE A NUMBER OF KNOWN AND UNKNOWN RISKS AND UNCERTAINTIES THAT COULD CAUSE TEVA'S FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS TO DIFFER SIGNIFICANTLY FROM THE RESULTS, PERFORMANCE OR ACHIEVEMENTS EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS. IMPORTANT FACTORS THAT COULD CAUSE OR CONTRIBUTE TO SUCH DIFFERENCES INCLUDE RISKS RELATING TO: TEVA'S ABILITY TO ACCURATELY PREDICT FUTURE MARKET CONDITIONS, TEVA'S ABILITY TO SUCCESSFULLY DEVELOP AND COMMERCIALIZE ADDITIONAL PHARMACEUTICAL PRODUCTS, THE INTRODUCTION OF COMPETING GENERIC EQUIVALENTS, THE EXTENT TO WHICH TEVA MAY OBTAIN U.S. MARKET EXCLUSIVITY FOR CERTAIN OF ITS NEW GENERIC PRODUCTS AND REGULATORY CHANGES THAT MAY PREVENT TEVA FROM UTILIZING EXCLUSIVITY PERIODS, COMPETITION FROM BRAND-NAME COMPANIES THAT ARE UNDER INCREASED PRESSURE TO COUNTER GENERIC PRODUCTS, OR COMPETITORS THAT SEEK TO DELAY THE INTRODUCTION OF GENERIC PRODUCTS, POTENTIAL LIABILITY FOR SALES OF GENERIC PRODUCTS PRIOR TO A FINAL RESOLUTION OF OUTSTANDING PATENT LITIGATION, INCLUDING THAT RELATING TO THE GENERIC VERSIONS OF ALLEGRA�, NEURONTIN�, LOTREL�, FAMVIR�, AND PROTONIX�, THE IMPACT OF CONSOLIDATION OF OUR DISTRIBUTORS AND CUSTOMERS, THE EFFECTS OF COMPETITION ON OUR INNOVATIVE PRODUCTS, ESPECIALLY COPAXONE� SALES, THE IMPACT OF PHARMACEUTICAL INDUSTRY REGULATION AND PENDING LEGISLATION THAT COULD AFFECT THE PHARMACEUTICAL INDUSTRY, THE DIFFICULTY OF PREDICTING U.S. FOOD AND DRUG ADMINISTRATION, EUROPEAN MEDICINES AGENCY AND OTHER REGULATORY AUTHORITY APPROVALS, THE REGULATORY ENVIRONMENT AND CHANGES IN THE HEALTH POLICIES AND STRUCTURES OF VARIOUS COUNTRIES, OUR ABILITY TO ACHIEVE EXPECTED RESULTS THOUGH OUR INNOVATIVE R&D EFFORTS, TEVA'S ABILITY TO SUCCESSFULLY IDENTIFY, CONSUMMATE AND INTEGRATE ACQUISITIONS, POTENTIAL EXPOSURE TO PRODUCT LIABILITY CLAIMS TO THE EXTENT NOT COVERED BY INSURANCE, DEPENDENCE ON THE EFFECTIVENESS OF OUR PATENTS AND OTHER PROTECTIONS FOR INNOVATIVE PRODUCTS, SIGNIFICANT OPERATIONS WORLDWIDE THAT MAY BE ADVERSELY AFFECTED BY TERRORISM, POLITICAL OR ECONOMICAL INSTABILITY OR MAJOR HOSTILITIES, SUPPLY INTERRUPTIONS OR DELAYS THAT COULD RESULT FROM THE COMPLEX MANUFACTURING OF OUR PRODUCTS AND OUR GLOBAL SUPPLY CHAIN, ENVIRONMENTAL RISKS, FLUCTUATIONS IN CURRENCY, EXCHANGE AND INTEREST RATES, AND OTHER FACTORS THAT ARE DISCUSSED IN TEVA'S ANNUAL REPORT ON FORM 20-F AND ITS OTHER FILINGS WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION. FORWARD-LOOKING STATEMENTS SPEAK ONLY AS OF THE DATE ON WHICH THEY ARE MADE AND THE COMPANY UNDERTAKES NO OBLIGATION TO UPDATE OR REVISE ANY FORWARD-LOOKING STATEMENT, WHETHER AS A RESULT OF NEW INFORMATION, FUTURE EVENTS OR OTHERWISE.

Forward-Looking Statements

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Table of Contents

� Teva’s Growth Strategy 2008-2012

� Global Generic Markets

� US

� Europe

� International

� Global Generic Resources

� Innovative Strategy

� BioGenerics

� Modeling Teva

� Closing Thoughts

Teva’s Growth Strategy 2008-2012

Shlomo Yanai

President and CEO

Teva Pharmaceutical Industries Ltd.

February 21, 2008

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�

Fundamental Questions

? Can Teva sustain its pace of growth for years to come?

? What will be Teva’s key growth drivers?

? What is Teva’s value proposition?

1

�

Teva’s 20/20 Target

By 2012, we expect to:

� Double our business

� Reach revenues of $20 billion

� Exceed net income margins of 20%

2

�

Growth Through Market Leadership

WatsonMylan

$7.0 B

Sandoz

$2.6 B

Teva

$2.5 B

Barr

$2.5 B

$9.4 B

2007 Sales of peer group

Market Leadership:

� Market share

� Gap between #1 and #2

Source: Company reports and analyst estimates3

�

The Leader’s Reward

Difference in operating margin

0% 10% 15% 20% 25% 30%5%0%

10%

2%

4%

6%

8%

Difference in market share between no. 1 and no. 2 player

Source: Cross industry analysis of market leadership, McKinsey & Company

Market leaders are typically more profitable than followers

� The greater the share gap the greater the profit advantage

� Greater absolute market share correlates with greater profitability

4

�

The External Environment

Macro conditions are in Teva’s favor

Harmonization& Consolidation

Payors

Demand� Demographic shifts and emerging market growth

� Global generics ~$75b in 2007 to ~$120b in 2012

� Decision-making shifting to payors

� Growing pressure to lower costs

� Big-to-big opportunities

� Global standards, common products, and global economies of scale create a few global leaders

5

�

Growth Will Create “2 More U.S. Markets”

* U.S. and CanadaSource: IMS, Espicom; Teva estimates of local markets

$75B

2007 2012

International

Europe

North America*

$120B

$45B

Global Generics Sales

6

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Teva’s Core Strengths and Competitive Advantages

� Broadest product portfolio

� Largest first-to-file / Paragraph IV pipeline

� API leadership

� Large global footprint, leadership in most significant market (U.S.)

Teva’s Scale and

Leadership

Teva’s Scale and

Leadership

� R&D, legal and regulatory excellence

� Low-cost production and supply chain

� Backward integration

� Proven track-record in M&As

� Service excellence

Execution ExcellenceExecution Excellence

� Commitment to global generics leadership

� Leveraging scale and scope

� Commercial innovation

Competitive Approach

Competitive Approach

� Lean, agile, responsive and fast

� Proactive, willing to challengeTeva’s CultureTeva’s Culture

7

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Key Pillars of Our Strategy

Increase Teva’s market share in key markets

Increase Teva’s market share in key markets

� Extend leadership in U.S.� Establish leadership in key EU and International markets

Double our product portfolioDouble our product portfolio

� Double R&D capabilities� Focus on first-to-market / Paragraph IVs� Double production capacity

Biotechnology: Next growth wave in generics

Biotechnology: Next growth wave in generics

� Invest in the next wave of technology and Generics� Create affordable Biogenerics: lower cost, greater value

Redefine customer serviceRedefine customer service

� Develop big-to-big offerings� Create new go-to-market initiatives

Innovative businessInnovative business

� Focus on niche specialty areas� Leverage unique sourcing, development and go-to-

market approaches

8

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Teva’s Value Proposition

� Growth Company

� Commitment To Global Generics Leadership

� Balanced Business Model

� Attractive Financial Returns

� Teva’s Culture and Brand

9

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Key Themes

� Increase market leadership

� Double-down on product portfolio

� Redefine customer service

� Affordable Biogenerics

� Differentiated approach to Innovative

� Double our business

� Reach revenues of $20 billion

� Exceed net profit margins of 20%

Where Teva is going

How we will get there

10

Teva North America

Bill Marth

President and CEO

Teva North America

February 21, 2008

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Our Goal

North American Sales

$5.2 B

2007

$9.5 – 11.5 B

2012

CAGR:13-17%

Note: Includes all pharmaceutical sales in the U.S. and Canada1

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Respiratory

Large global market

� Key part of our market strategies

� Potential market of ~$25 Billion by 2012

Teva commercial strengths

� Significant share of SABA market (US)

� Relationships with trade, payors, physicians

Investments in R&D

� Numerous pipeline products

� Leveraging innovative and generic R&D capabilities

2

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U.S. Generics – Key Themes

Strategy� Strong generics growth in a very attractive market

� Clear U.S. market leader - we aim to significantly increase our market share leadership

Execution� Double down on our generics portfolio

� Improve our generics commercial model with even greater focus on customers

Goal� Overall, we expect Teva’s U.S. generics revenues

to outpace the market while maintaining current EBIT margins

3

� Source: IMS National Prescription Audit MAT December 2007

Number of TRxs per dayMillions

� Teva dispenses nearly 2 out of every 10 generics prescriptions

� Teva’s daily volume is 50% greater than the next closest competitor

Teva is the Clear U.S. Market Leader

0.40.50.6

0.8

1.2

WatsonMylan BarrTeva Sandoz

4

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3.6 B

2.4 B

0.4 B

1.1 B

Projected TRx CAGRs

� Generics overall: 8%

� Teva: 20%

Extending U.S. Leadership to 30% Market Share

* ProjectedSource: IMS Health National Prescription Audit, Teva Estimates

Generic Industry TRxsTeva total generic TRxs

2007A 2012E

Number of TRxs

18% 30%Teva’s share*

5

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Key Elements of the U.S. Strategy

Product portfolio

� Significantly greater investment in R&D

� Expand portfolio - new product launches

� Heavy emphasis on Para IV filings

� Leverage our scale for strategic and competitive advantage

� Supply Chain preeminence

Leadership and scale

� Innovate our commercial model – expand relationships with market leaders

� Redefine service

Go-to-market initiatives

6

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Doubling Down on Generic R&D

� Doubling our submissions

� Accelerating development to further increase our “first-to-file,” “first-to market” and “first-to-opportunity”positions

� Doubling output without doubling resources through:� Capacity� Speed� Efficiency� Parallel development � Technology

7

�� Source: IMS, Teva estimates

2007 Pharmaceuticals Market

Total market

$285 B

Products Pending Approval and In Development Cover Most of the Market

$101 BTeva products pending approval

Teva products in development

$101 B

$83 B

Opportunity 65%Of the market

8

�� Source: Investor earnings call transcripts and company statements

1149

160

Teva

N/A

>80

Sandoz

12

60

Mylan

16

71

Barr

70

Watson

First-to-file

PipelineNumber of ANDAs pending

� Teva has more ANDAs than any two competitors combined

� 92 current Teva files are Paragraph IV challenges (49 have FTF status)

Teva has the Most Valuable Pipeline…

9

�� Source: Investor earnings call transcripts and company statements

…and the Broadest Product Portfolio in the Industry

Currently marketed productsNumber of products

Teva has 65% more marketed

products than the next closest competitor

150

150

170

200

331

Mylan

Barr

Sandoz

Watson

Teva

ESTIMATES

10

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2007: Pantoprazole

Source: Market data from IMS NSP at time of launch

Our Scale Gives Us an Unrivaled Ability to Launch At Risk

� Leverages our core capabilities

� R&D

� Legal/regulatory

� Product commercialization: the way we go to market

� Supply chain flexibility

� Customers value earlier and superior access to products

� Enhances profitability

11

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Advantages of Supply Chain Preeminence

� Ability to leverage customer demand information across the Supply Chain

� Robust global Supply Chain network

� Prompt, seamless coordination of complex supply and distribution network

� Supported by 14 manufacturing sites globally

� Ability to execute large launches quickly (e.g., Pantoprazole, Simvastatin)

� Produce at multiple sites simultaneously

� Able to deliver multiple product configurations at launch

12

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Robust Customer Relationships Are Critical to Our Success

Generics are critical to Teva’s key customers

� By 2012 generics will represent > 75% of all prescriptions in the U.S.

� Generics represent >50% of the drug profits of key U.S. customers

We have developed a customer-centric business model

� Core elements:

� Superior service

� Collaborative planning

� Early access to new product launches

� Future plans:

� Tighter collaboration

� Enhanced packaging

� ‘Game changing’ moves

“Big-to-Big”

13

Example: ‘Game Changing’Customer Service Innovation

• Our goal within 3 years, is to reach 50,000 pharmacies nationwide the day after launch

• Significant investment planned to expanding our Supply Chain in combination with a new Direct-to-Store delivery capability

• Benefits across the value chain:

• Faster patient access to generics

• More pharmacies immediately benefit from new product launches

• More efficient inventory management across the distribution system

Reach All Pharmacies In a Day . . .

14

�

Teva’s U.S. Generics Financial Goal

U.S. Net Sales Projected GrowthCAGR 2007 – 2012

10%

Market

>14%

Teva

� Key Paragraph IVs and other new products

� Big-to-big customer relationships

� Additional upside in specialty and innovative products

Source: IMS; Teva estimates15

�

Extending our Lead

0

50

100

150

200

0 50 100 150 200 250 300 350 400

Teva

Sandoz

Mylan

Barr

Watson

Current portfolioMarketed products

Future portfolioANDAs Pending

Note: Bubble size is proportional to IMS reports of 2007 TRx; Teva = 437 Million16

European Generics Market

Gerard W.M. van Odijk

President and CEO

Teva Europe

February 21, 2008

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�

Key Themes

• European generics market is large and growing

• Teva has a proven track record of growth

• Growth strategy focuses on:- Increasing our share - Securing leadership- Investing in our core functions

• By 2012, we expect to more than double our sales and grow EBIT even faster

11

�

Our Goal

European* Sales

$5.1 – 5.7 B

$2.2 B

20122007

18-21%

* Refers throughout to Western Europe and Hungary2

�

The Western European Generics Market is Large and Growing

CAGR, 2007-12

Europe overall is a large market with steady growth (7% CAGR)

20.2

2012

+7%

14.7

2007

Net sales retail and hospitalUSD Billions

Growth is particularly strong in the EU’s “Latin” countries

Italy

+20%

Spain

+15%

France

+14%

3

�

High Growth in “Latin” European Countries, Driven by New Reforms

7%12%

17%

50%54%

63% 65%

��

��

U.K.U.S.GermanyNetherlandsFranceSpainItaly

Emerging Generics Markets“Latin Europe”

Mature Generics Markets

Increased Generics penetrationIncreased Generics penetration

Generics Market ShareVolume

Source: EGA 2007 Market Survey; US based on IMS estimates June 20074

�

7%12%

17%

50%54%

63% 65%

��

��

U.K.U.S.GermanyNetherlandsFranceSpainItaly

In Germany, Tenders Create New Opportunities

Emerging Generics Markets“Latin Europe”

Mature Generics Markets

� Tenders are entry ticket to the world’s 2nd largest generics market (~ $5 billion)

� Shift from Branded-Generics to “Generic-Generics”

� Tenders are entry ticket to the world’s 2nd largest generics market (~ $5 billion)

� Shift from Branded-Generics to “Generic-Generics”

Generics Market ShareVolume

Source: EGA 2007 Market Survey; US based on IMS estimates June 20075

�

Across the Region, Pharmacies and Chains Gaining Importance

Branded Generics

model

Branded Generics

model

Pharmacist/ payor influence

Physicianinfluence Hungary

Italy

France

U.K.

Netherlands

Germany

Spain Markets undergoing

change

Generics penetration

Substitution Generics

model

Substitution Generics

model

Selective portfolioSelective portfolio

BroadportfolioBroad

portfolio

Market transition

6

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Core Elements of Our Strategy

• Build leadership in “Latin” markets

• Capture generics tender opportunity in Germany

• Leverage scale where competition is fragmented

Secure leadership market by marketSecure leadership market by market

Invest to enhance our core functionsInvest to enhance our core functions

• Not just ‘First to Market’ but ‘Broad to Market’

• Build out manufacturing capacity and flexibility

• Expand Supply Chain

Extend lead in U.K., Italy, and Netherlands

Extend lead in U.K., Italy, and Netherlands

• Expand ‘big-to-big’ relationships

• Further broaden product portfolio

• Drive profitability through scale

7

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Unparalleled service levelUnparalleled service level

Up scaling1. Improved flexibility & responsiveness2. Reduce costs

Up scaling1. Improved flexibility & responsiveness2. Reduce costs

Our Continued Back-End Investment Creates a Foundation for our Growth

Doubling our European GR&D investment next 5 years

Doubling our European GR&D investment next 5 years

Doubling Manufacturing Capacity next 5 years

Doubling Manufacturing Capacity next 5 years

170247

381 472612

7631,019

> 1500 (+50%)

�

��

��

��

��

Plan2008

2007200620052004200320022001

10 X UP

��

1. 2.

8

�

Teva’s Proven Go-to-Market Approach

Teva’s European Presence

“Big-to-Big”Portfolio breadth and

geographical presence position Teva as unique partner

for EU wholesale & retail players

“Big-to-Big”Portfolio breadth and

geographical presence position Teva as unique partner

for EU wholesale & retail players

“Sell-out”Distinctive commercial offers and lean & agile go-to-market models

match evolving market needs

“Sell-out”Distinctive commercial offers and lean & agile go-to-market models

match evolving market needs

New products / loyalty program

PullPull

1. 2.

9

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Closing Remarks

• European generics market is attractive

• Teva is uniquely positioned to succeed in Europe

• Teva’s European growth strategy is focused on achieving market leadership

• By 2012, Teva will more than double sales and grow EBIT even faster

10

Chaim Hurvitz

Group VP – International


February 21, 2008

International Generic Markets

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Key Themes

� Huge potential in the International markets

� Strong starting point - market positions, global capabilities

1

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Our Goal

2012

$3.2 – 4.0 B

2007

International Sales

18-23%

$1.4 B

2

��

Strong International Market Growth

Source: IMS, ex-factory prices 07/07

Pharma Market (CAGRs 2007-2011)

International markets:2007 : $ 188 B2011: $ 257 B

LatinAmerica:

10%

Japan: 4%

Asia:11%

Eastern Europe:

18%

3

�

Broad Teva Presence in International Markets

Poland

CzechLithuania

ChinaHungary

Mexico

Venezuela

Chile

Argentina

Israel

� 19 Manufacturing sites

� 3 Partnerships

� 24 National companies

Peru

Uruguay

Brazil S. Africa

KenyaSingapore

Japan

Taiwan

RomaniaBulgariaTurkey

RussiaLatvia

Ukraine

Presence

India

4

��

International Generic Markets Growing Rapidly

Source: IMS; Espicom; Teva estimates

2007 ($B) Generics 2012 ($B) GenericsCAGR 2007-12 Percent

1.5

2.5

3.2

3.3

3.4

3.5

6.6

12.7China

India

Mexico

Japan

Turkey

Russia

Brazil

S. Korea

4.6

5.2

4.3

8.9

6.6

4.9

9.3

22.4

7

7

6

25

16

22

14

12

5

��

Strategic Considerations For Prioritizing Markets

Market size

Growth rate

Readiness / Maturity

- Political and economy stability

- Government accountability to health care

- Regulatory & Legal environment

6

�

Two Types of Markets on our Priority List

Early Generic marketsEmerging Economies

� Large, or rapidly growing overall pharmamarket

� Low generic share

� Favorable trends e.g., demographic growth, cost pressure

� Strong economic growth and rising personal wealth

� Consolidated group of retailers and distributors

� Rising patient demand for quality products

Example: JapanExample: Brazil, Mexico

7

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Brazil – Emerging Economy; Quality Is Growing in Importance

Source: Espicom, IMS, Expert Interviews, Teva analysis

$ Billions$ Billions

BioequivalentGenerics

Branded Generics and Similares

Patentedmolecules

CAGR 2007-12 Percent

-1

8

25

9.4

8.8

17.4

13.6

+5%

2012

4.6

4.0

2007

1.5

2.7

� Rising personal wealth drives Bioequivalent growth at the expense of “Similares”

� Customers are consolidating enabling big-to-big strategies

8

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Mexico – Emerging Economy; Quality Is Growing in Importance

Source: Team analysis, RMBC, experts interviews, Teva analysis

$ Billions$ Billions

3.4

CAGR 2007-12 Percent

14

12

Generics

10.3

18.5

2012

6.6

2007

13.7

25.1

3.4

+13%

Innovative& Branded Generics

� Already # 1 in Public Sector

� Government is:� Enforcing

bioequivalence laws

� Increasing public health spending

� A broad portfolio is important in tenders

9

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Japanese Generics Market Poised To Grow

� World’s 2nd largest pharma market

- 2007: $67B

- 2012 projection: $83B

� Attractive fundamentals:

- Aging population

- Rising healthcare costs

- Government encouraging generics penetration

10

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Significant Opportunity To Increase Generics Penetration In Japan

Generics share of total prescription drug marketIn percentage

Source: IMS; MHLW; Espicom; Teva analysis

� Government targeting 30% volume share by 2012

� Government could save ~$25B annually

Volume Value

5

17

11

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Closing Remarks

� Huge potential

� Strong starting point - markets positions, global capabilities

� Growth by:

� Extending existing presence

� Entering new markets

� Our goal: $3.2–4.0 Billion in profitable revenues in 2012

12

NJE-1410.1305-20080207-dineHR2

Global Generic Resources

Amir Elstein

Executive VP, Global Resources


February 21, 2008

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��

Key Themes

Enable Teva to win in all markets

where we compete


where we compete

Goal of Global Generic Resources

Goal of Global Generic Resources

1

��

Pharma operations

�Supply chain

GR&D TAPI

Key Success Factors For Our Growth Strategy

�Greatest rate of first-to-market products

�Redefine customer service

�Competitive cost position

�Shift from unifocal to multifocal

Leverage our scale

2

�

Global Generic Resources: Driving Market Leadership

Service leadership

Portfolio value

Double capacity

Unmatchedcombined capabilities

“2x”performance

3

��

TAPI Global Advantage –Size and Service

195238245274303

357360500550

1,460

Competitors

TevaWesternIndianChinese

Company

Estimated 2007 Sales$ Millions

� Huge portfolio (250+ products)

� Highly responsive

� Strong patent position

� Top talent – scientific and management

� Huge portfolio (250+ products)

� Highly responsive

� Strong patent position

� Top talent – scientific and management

4

��

Global Portfolio Uses U.S. as Springboard

2007 2010

P IV / First-to-file >50% >50%

High Portfolio Value: Total Value and Value per File

# Global files 126 More than double

Rapid cost-effective

entry into Europe and International

markets

Rapid cost-effective

entry into Europe and International

markets

Leveraged investment� Bioequivalence studies� API development� Formulation technology� Manufacturing process

5

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Service Leadership at the Next Level

Teva service: “Big-to-Big”supply system

Teva service: “Big-to-Big”supply system

� Just-in-time/“pull” delivery

� Customized shipping

� Global supply chain

� Broad portfolio and rapid targeted distribution

Customer needsCustomer needs

� Inventory reduction

� Lower labor costs

� Multi-region/multi-country supply reliability

� Pharmacy profitability/product availability

6

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Substantially Expanding our Supply Chain to Support Growth

Solid oral drugsBillions of tablets

�Moving to separate from the pack

�Enhancing our already powerful launch capability

�Moving to separate from the pack

�Enhancing our already powerful launch capability

2007 2008 2009 2010 2011 2012

40

60

80

100

120

>2x in “on-time”capacity

>2x in “on-time”capacity

7

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Selecting the Best Site to Maximize Value

MissouriNetherlands

Hungary

Italy India

Israel (5)Mexico

SwitzerlandNJ

Puerto Rico

Czech Republic

China SpeedSpeed

EBITEBIT

Vertical Vertical integrationintegration

Peru

Chile Argentina

Venezuela

Toronto

CA PA

UK

Brazil

Operating in 20 countries�TAPI: 16 plants & 8 R&D sites�Pharma: 33 plants & 16 R&D sites

Operating in 20 countries�TAPI: 16 plants & 8 R&D sites�Pharma: 33 plants & 16 R&D sites

8

��

Global Leadership


where we compete


where we compete

� Double portfolio value and capacity of global core functions

� Maintain and enhance service leadership

� Separate from the pack – unmatched global generic resources

9

Moshe ManorGroup VP - Global Innovative ResourcesTeva Pharmaceutical Industries Ltd.February 21, 2008

Teva’s Innovative Strategy

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��

Key Themes

� $3 billion in risk-adjusted revenues expected by 2012

� Growth in Innovative contributes to Teva brand and balanced business model

� Investing to create long-term value

1

�

Proven Capabilities Across the Value Chain

� Sourcing innovation, products and companies, focusing on Israeli science

� Executing trials at low cost, with competitive recruitment rates

� Experience in working with regulators

� First-class capabilities� Synergies: Leveraging expertise of Generic R&D

� Proven messages that drive market share� Highly-productive sales force

Sourcing

Development

Regulatory

Manufacturing

Marketingand

Sales

2

��

Our Differentiated Approach to Innovative

� Focus on niche therapeutic areas

� Products with:� Differentiated clinical attributes� Real economic value for patients and payors

� Teva’s unique advantages� Sourcing� Development � Go-to-market approach

� Strategies to mitigate risk� Upfront investment� Methodologies (Biomarkers)

3

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Three-Pronged Strategy

Unique sourcing value proposition

� Source products globally in focused TAs� Rapid evaluation and investment in opportunities

(New Ventures)� Unique value proposition (IP)

Next-generationdevelopment

� Streamline decision-making; shorten time, “kill early”� Flexibility by outsourcing non-strategic functions� Trials in emerging markets� Early investment to mitigate risk

� Focus on niche specialty areas � Small, specialty sales forces� Payor and trade relationships

Go-to-market model

4

��

Phase III/IIIB

Sub

mis

sion

Phase IVPhase II

Copaxone®40mg(MS)

Copaxone®(MS)

Copaxone®(CIS/MS )

Laquinimod®(MS)

Azilect®(PD)

Azilect®(PD/DM)

Copaxone®40mg (ALS)

Phase I

StemEx®(Cancer)

CT-011(Hematol. Cancer )

CT-011(Solid

Cancers)

Laquinimod®(CD)

Talampanel®(ALS )

Laquinimod®(SLE/LN)

Debrase®(burns)

AutoImmune:SLE/LN – LupusCD – Crohn’s Disease

MS Other IndicationsNeurology:PD – Parkinson’s Disease

Clinical Development Pipeline

Oncology

5

��

Time-to-Market for Potential Products

Copaxone® 40 mg (MS)

Azilect®(PD - DM)

StemEx®(Cancer)

Laquinimod®

(MS)

Copaxone® 40mg(ALS)

CT-011(Hematological Cancer)

2009-2011 2012-2014 2015 and beyond

Copaxone® 20mg (CIS)

CT-011(Solid Cancer)

Debrase®(burns)

Laquinimod®

(SLE/LN)

Other IndicationsAuto-Immune:SLE/LN – LupusCD – Crohn’s Disease

MS Neurology:PD – Parkinson’s Disease

Potential revenue(risk adjusted)2015: $4-5B

Oncology

Laquinimod®

(CD)

Talampanel®(ALS)

6

��

5%

Copaxone Is On-Track to Become Global #1 (in Value)

21%

2004

30%

21%

25%

23%

2005

29%

21%

32%

22%

25%Copaxone®

25%24%

2006

26%

20%

25%

30%

0%

35%

24%

2007

Avonex®

Betaseron®

Rebif®

20%

Tysabri®

Note: Based on the last release of all companies (Q3)

1%5%

25%

7

��

What Will Fuel Copaxone’s® Growth?

Efficacy in CIS

Short Term

Efficacy and

Safety in RRMS

Efficacy on

damage and

repair

Long Term

Efficacy and

Safety in RRMS

Level of Differentiation

Low

Medium

High

In addition:� Copaxone® 40mg with increased efficacy� Oral Laquinimod®

Product features and benefits

8

�

Innovative Long Term Growth

Risk-Adjusted Revenues

2007 2012 2015

$1.8 B*

$3 B

$4 – 5 B

* In-Market Sales9

��

� $3 Billion in risk-adjusted revenues by 2012

� Strong growth of Copaxone® and Azilect®

� Building a portfolio that drives growth past 2012

� Leveraging Teva’s expertise, capabilities, synergies

� Extending our capabilities into additional focused therapeutic areas

The Future of Teva’s Innovative Business

10

Biogenerics

Amir Elstein

Executive VP, Global Resources


February 21, 2008

�



��

Key Themes

� Biopharmaceuticals – huge potential

� Biogenerics – next wave of growth for generics

� Our strategy – “same for less”

� Investing for leadership

1

��

Biopharmaceuticals Predicted Growth

474

2007

165

450

615

2012

Biologics

Small molecule

485

89

1990

94

380

Market size, worldwide$ Billions

Source: Evaluate Pharma

Total 5

3

CAGR2007-12Percent

12

2

��

Biogenerics: Next Generation of Growth for Teva

� Over $40 billion in current biopharmaceutical sales exposed to generic competition over the next 10 years

� Higher barriers to entry and attractive returns

� Aligned with market and social forces through our generic value proposition

3

��

Biogenerics: Teva Approach and Key Principles

� Reduce cost of development and production to provide affordable Biopharmaceuticals and competitive market position

� Invest in technologies, infrastructure and capabilities to develop and produce at low cost

� Leverage existing bioformulation and manufacturing expertise

� Pursue early entry and/or “more for less” strategies as opportunities to boost value to our shareholders

Investing for the long-term

4

��

Our Biogenerics Strategy

Substitution “Identical” product

“Equivalent”but notsubstitutable

Development focus Commercial approach

Same for less

Opportunistic: “more for less”

Same clinicalattributes --Early entry IP

5

��

Investing for Biogenerics Leadership

Key success factors �Technology platforms �Market presence�Portfolio�Low cost position

Teva capabilities

� Clinical/development� Manufacturing � Commercialization� Payor relationships� IP

CoGenesys value-add

� Product IP� HSA-fusion technology� Product in development � CMC – process and

technology

6

�

Biogenerics Strategy –Guiding Principles

Leadership � Industry-shaping role

Generic value proposition � Same for less

Invest wisely and patiently

� Organic and inorganic

7

Modeling Teva

Dan Suesskind

CFO


February 21, 2008

��



�

2012 Projected Sales

$1.4 B

Europe$9.5 – 11.5 B

$0.9 B

North AmericaTAPI

$19.0 – 21.5 B

$5.1 – 5.7 B

$2.2 B

International

$5.2 B

$0.6 B

$9.4 B

$3.2 – 4.0 B 18 – 23%

18 – 21%

13 – 17%

CAGR ��-�2

CAGR15-18%

Note: 2012 totals do not sum; reflect company’s projected overall range1

��

Balanced Business Model –Geographies

20072007

20122012

North America55%

API6%

International15%

Europe23%

API4%

North America51%

International18%

Europe27%

2

��

Balanced Business Model –Businesses

20072007

20122012

Generics75%

API6%

Branded19%

Generics74%

Branded22%API

4%3

��

Proforma P&L

2007

$ Billions

Sales

Gross Margin

R&D

SG&A

Operating Profit

Finance Expenses/Income

Tax

Net Income

9.4

4.9

0.6

1.9

2.4

0.4

2.0

Percent

2012

$ Billions Percent

100

51.8

6.2

20.2

25.5

17.0

20.8

19.0 – 21.5

3.8 – 4.9

100

>50%

Closing Thoughts

Shlomo Yanai

President and CEO


February 21, 2008

��



��

What You Can Expect From Teva

Continuous profitable growth

Long-term perspective: product portfolio, capacity and service

Balanced business model & attractive financial returns

Expanding leadership in key markets

2

Documents

Teva Strategy Overviews24.q4cdn.com/720828402/files/doc_downloads/doc_events/Presentation_28.pdfTeva’s Growth Strategy 2008-2012 Shlomo Yanai President and CEO Teva Pharmaceutical