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Cowen Health Care ConferenceCowen Health Care Conference
Geno GermanoPresident – U.S. and General ManagerWyeth Pharmaceuticals
March 13, 2007March 13, 2007
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Forward-Looking Statement
The statements in this presentation that are not historical facts are forward-looking statements based on current expectations of future events that involve risks and uncertainties including, without limitation, risks associated with the inherent uncertainty of pharmaceutical research, product development, manufacturing, commercialization, economic conditions including interest and currency exchange rate fluctuations, the impact of competitive or generic products, product liability and other types of lawsuits, the impact of legislative and regulatory compliance and obtaining approvals, and patent, and other risks and uncertainties, including those detailed from time to time in Wyeth’s periodic reports, including quarterly reports on Form 10-Q and the annual report on Form 10-K, filed with the Securities and Exchange Commission. Quarterly results, in particular, can vary due to issues which include, but are not limited to, changes in exchange rates, the timing of actions taken by the Company to ensure long-term improvements to our manufacturing processes, the timing of regulatory approval of new products and/or facilities and the timing of promotional programs. Actual results may vary materially from the forward-looking statements. The Company assumes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.
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$0
$5
$10
$15
$20
$25
FY 05 FY 06$0.0$0.5$1.0$1.5$2.0$2.5$3.0$3.5$4.0$4.5
FY 05 FY 06$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
$3.50
FY 05 FY 06
$2.75$2.75
$3.14$3.14
+14%
$19B$19B$20B$20B
+9%
$3.7B$3.7B
$4.3B$4.3B
+15%
Net Revenue ($B) Net Income* ($B) Earnings Per Share*
* Excludes Certain Significant Items and Reflects the 2005 Pro Forma Effect of Expensing Stock Options
Wyeth Delivered Strong Growth in 2006
4 (in millions)$0 $1,000 $2,000 $3,000 $4,000 $5,000
BMP-2Rapamune
BeneFIXZosyn
PremarinNutritionals
Alliance Rev.ProtonixPrevnarEffexorEnbrel
+9%+16%
+17%+7%
+30%+8%
+20%
+15%
+30%
+12%
$4.4B
$3.7 B
$2.0 B
$1.8 B
$1.3 B
$1.2 B
$1.1 B
$972 M
$337M
$308 M
$2,880 M (Amgen) $1,50 M (Wyeth)
$358M +4%
Strong Growth In 2006
FY06 Pharma Revenue
Growth +10%
Marketed Products
5
2006 Wyeth’s Leadership Positions
#1 Antidepressant
#1 RA & Psoriasis Biologic
#1 Vaccine
#1 I.V. Antibiotic
#1 Infant Formula (In Aggregate Market Where We Compete)
#1 HT
#1 Hemophilia B
6
2007 Guidance*• Pro Forma EPS +8% to +11%• Revenue Growth Mid to High
Single Digit• Gross Margin 72% to 74%• SG&A Increase at a
Significantly Lower Rate than Revenue
• R&D Growth Mid Single Digit
• Continue to Grow the Bottom Line at a Meaningfully Faster Rate Than Revenue Growth
Project Springboard• Increase Efficiency of
Marketing/Selling Approach• Commercial Excellence• Marketing Excellence
• Enhance R&D Technical and Management Processes
• Learn and Confirm• Early Clinical Development
Centers
• Optimize Manufacturing Supply Chain
• 25 Sites in 2006 vs. 43 in 2000
* Excludes Certain Significant Items
Efforts Continue to Contain Cost Structure While Allowing Support of Key Brands and R&D
7
New Commercial Model
Recognizing the Need for More Positive Interactions With Physicians, Consumers, and Payors, Wyeth Sought to Create a New Commercial Model That Would:
n Meet the Needs of the Market, Our Customers, and Shareholders
n Increase Effectiveness by Improving Access and Interaction With Physicians
n Recognize Alternative Methods to Deliver Product Messages to Physicians, Payors, and Consumers
n Re-establish Our Sales Representative Value Proposition
8
New Primary Selling ModelOperational Summary
Old Modeln Shared Physician Targets
Within PODn Headquarters-driven Plan
of Actionn Shared Accountabilityn One Primary Productn Uniform Resource Allocationn District Management Matrixn Physician Segmented
by Volumen Rep Incentive Share/Volume
New Modeln Physician and Account
Responsibilityn Local Empowerment and
Decision Making n Individual Accountabilityn Portfolio Responsibilityn Custom Resource Allocationn DM Geographic Ownershipn Physician Segmented
by Valuen Rep Incentive Value
Generation
Early Indications Reflect Favorable Physician Response
Source: Health Strategies Group “2006 State of the Selling Environment Study”. Question: Overall, how satisfied are you with this pharmaceutical representative? Rate on a scale from 1-7 where 1 is Not at all satisfied and 7 is Very satisfied.
Primary CarePrimary CareCompanyCompany
20062006 RankRank 20052005 RankRankWyeth 71% 1 57% 8Eli Lilly 69% 2 51% 13Pfizer 69% 3 77% 1GlaxoSmithKline 67% 4 64% 5Forest 66% 5 68% 2Abbott 63% 6 48% 16AstraZeneca 63% 7 62% 6Merck 62% 8 55% 11Takeda 62% 9 60% 7Novartis 60% 10 68% 2Boehringer-Ingelheim 59% 11 56% 10Sanofi-Aventis 58% 12 51% 13Schering-Plough 55% 13 66% 4Bristol-Myers Squibb 50% 14 38% 17TAP 50% 14 57% 8Johnson & Johnson 47% 15 52% 12Procter & Gamble 44% 16 50% 15Roche 41% 17 N/A N/AIndustry Average 59% N/A 58% N/A
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Continuous Learning
n Sales Remain on Target With All Brands Achieving or Exceeding Established Goals
n Strong Customer Relationships Enhanced or Maintained72% of Physicians Indicated the New Model Would Allow Them to Establish Stronger Relationships With Their RepresentativesSales Representatives Report Improved Access in Many Offices As a Result of Account Ownership
n Increased EfficiencyApproximately 70% of Physicians Say the Current Model Is an Improvement That Provides More Value for Them/Their Staff
n Greater Flexibility for Market and Environmental Changesn Local Empowerment to Increase Productivity
and Job Satisfaction
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Marketing Excellence VisionInnovating for Sustainable Advantage in a Changing Marketplace
Build a Customer-focused Organization That:
1. Understands and Meets Our Customers’ Needs
2. Values and Rewards Innovation & Creativity
3. Optimizes Our Structure to Deliver Flawless Execution in a Cost-efficient Manner
4. Drives Preference for Our Brands
5. Is Recognized As a Leader at the Forefront of Change
Create Sustainable Competitive Advantage
12
Other Industries Offer Rich Source of Learning for Wyeth Marketing
Examples
Brand Planning
Systematic and Rigorous Approach to Business Planning and Metrics
Channel Management
Use Multi-channels to Segment, Acquire and Retain Customers
Customer Insights
Novel Approaches to Research (E.G., Anthropology, Ethnography) to Capture Unique Insights
Payor As Customer
Deep Understanding of Payor Behavior and Business Drivers
Marketing Organization
Clearly Defined Roles and Rules of Engagement Between Brand Team and Marketing Support
13
Key Areas of Focus:
Gain Deeper Customer Insights
Enhance Customer-focused Marketing
Increase Rigor to Marketing Processes and Talent
Focus on U.S. Business
Marketing ExcellenceBuild a Customer-focused Marketing Organization That Innovates to Achieve Sustainable Advantage in a Changing Marketplace
Marketing ExcellenceMarketing Excellence
HCPHCPRelationshipRelationship
MarketingMarketing
ConsumerConsumerEngagementEngagement
PayorPayorExcellenceExcellence
Insights PowerhouseInsights Powerhouse: : Building Deep Customer InsightsBuilding Deep Customer Insights
Talent ManagementTalent Management: : Strengthening Talent and DevelopmentStrengthening Talent and Development
Business AlignmentBusiness Alignment: : Balancing Business Management & Demand GenerationBalancing Business Management & Demand Generation
Brand PlanningBrand Planning: : Creating a Creating a ““Wyeth WayWyeth Way”” of Planningof Planning
14* Priority Review
New Pharmaceutical Products Pending FDA Approval
ProjectProject IndicationIndication FiledFiled PDUFAPDUFA
Lybrel™ Contraception June 2005 May 2007
Pristiq™ Depression December 2005 Approvable January 2007
Pristiq™ Vasomotor June 2006 2Q 2007
Viviant™ Osteo Prevention June 2006 2Q 2007
Bifeprunox Schizophrenia October 2006 3Q 2007
Torisel™ Renal Cell October 2006 2Q 2007*
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Pristiq™ – Proven SNRI Pharmacological Impact for Management of Depression
nSimilar to Effexor XR® in Terms of Efficacy, Safety and Tolerability
nVery Low Potential for Drug-drug Interaction
nWell-established QTc Safety Profile
16
Female71%
Source: SDI Longitudinal Patient Data, April 2006 (USA)
Women Represent Over 70% of Patients Treated with an Antidepressant
Treated Patients by Gender
Male29%Male29%
Female<40 Years
19%
Female<40 Years
19%
Female>40 Years
52%
Female>40 Years
52%
17
Transition Through Menopause Can Be Associated With New Onset or Recurrence of a Major Depressive Episode
n Estrogen Fluctuation or Decline May Diminish Serotonin and Norepinephrine Functioning
n Dual Reuptake Inhibitor May Be a Better Fit for Depression Associated With Menopause
18*SSRIs=fluoxetine, fluvoxamine, paroxetine, sertraline, and citalopram. †P≤0.05 drug vs. placebo. ‡P≤0.05 vs. SSRIs.Younger women = age ≤40; older women = age >55.Cohen LS, et al. Poster presented at ACNP Annual Meeting; San Juan, Puerto Rico; December 2004.
†
†‡ †‡
0
10
20
30
40
50
(n=263) (n=1041) (n=1007)(n=108) (n=367) (n=355)<40 >55<40 >55 <40 >55
Rem
issi
on R
ate,
Wee
k 8
(%)
Placebo
SSRIs* Effexor®/Effexor XR®P≤0.05
36%
30%
Pooled Analysis of 32 Depression Studies
Remission of Depression: Differential Response With Age
SSRIs vs. SNRIs
Age
Fibromyalgia
1 National Institute of Mental Health. “What To Do When A Friend is Depressed…” Bethesda (MD): National Institute of Mental Health, National Institutes of Health, U.S. Department of Health and Human Services, 2001.
2 Wyeth /ICR Patient Study Dec 2005, projected to total population using U.S. census data3 Patient Base by Decision Resources, August 2005
2006 Syndicated Depression Omnibus shows VMS and depression overlap of ~3M women, 2005 Depression Consumer Landscape Study shows fibromyalgia and depression overlap of ~1M women
Vasomotor Symptoms
23 Million2
Women
U.S. Prevalence
Providing Specific Benefits for Over35 Million Women
4 Million3
Women
Major Depression
12 Million1
Women
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Pristiq™ Differentiation
With FDA-approval, the FirstNon-hormonal Treatment of
Moderate-to-severe Vasomotor Symptoms (VMS) Associated With Menopause
With FDA-approval, the FirstNon-hormonal Treatment of
Moderate-to-severe Vasomotor Symptoms (VMS) Associated With Menopause
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30% Use Estrogen Therapy
Hysterectomized WomenExperiencing Hot Flushes
Menopausal WomenExperiencing Hot Flushes
10% UseHormoneTherapy
Sources: Wyeth/ICR Patient Study Dec 2005, projected to total population using U.S. census data
A Small Percentage of the 23 Million Symptomatic Women Use Available Treatments
15 Million Women 8 Million Women
22
StatusMDD Approvable Jan 2007
VMS NDA June 2006
Peak Sales > $2 Billion
Pristiq™ Product Profile for Major Depression or VMS
Can Become the First and Only SNRI Proven to Effectively Address the Distinctive Symptoms
and Therapeutic Needs of Women With Depression Associated With Menopause
or Vasomotor Symptoms
23
2007 Planned FDA Submissions
ProjectProject IndicationIndication Proposed FilingProposed Filing
Methylnaltrexone Opioid Induced Constipation March 2007
Tygacil® CAP/HAP Mid 2007
ReFacto® AF Hemophilia Mid 2007
Aprela™ Menopausal Symptoms / Osteoporosis Late 2007
Methylnaltrexone Post Operative Ileus Late 2007/Early 2008
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New Product Summary
7 7 NCENCE’’ss
11 New Indications11 New Indications
Competing in Markets Worth >$30B in Competing in Markets Worth >$30B in Annual SalesAnnual Sales
Late Stage Pipeline Addressed at 10/5/06 Analyst Meeting
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Positioning Wyeth To Be A Stronger Companyn Build Breadth and Diversity Into Every Aspect of the
Company So Wyeth Will Never Be Dependent on One Product or Any One Research Program
n Continue to Improve Profitability by Enhancing Productivity
n Achieve Solid Top Line Growth, Effectively Manage Costs, and Grow the Bottom Line at a Meaningfully Faster Rate Than the Growth in Revenues
n Position Wyeth to Be a Stronger Company at the End of the Decade Then We Are Today and Enter the Next Decade With Great Momentum
Questions?Questions?
Geno GermanoPresident – U.S. and General ManagerWyeth Pharmaceuticals