1. A company which suits to the circumstances
Ali RAHMOUNI
Grégoire PAQUET
Roberto SAHINGUVU

2. History
Created in 1928 by the merger of 13 chemical factories manufacturing
With 2 workstreams
small department
pharmaceutical division
=> Meurice Laboratories
Major department
industrial chemicals
Chemical Sector
Film Sector

3. Chemical and film department = Surface specialities
Strong investments in the 30’s
Since this period surface specialities product still stable until 2000
Area with no high technology investments
no perspectives for the future
but with regular incomes

4. 2 major therapeutical domains
Pharma division
1950s – First therapeutic breakthroughs
Discovery of Atarax
Non-benzodiazepinic tranquilliser
Given its name to the class of “ataraxics”
1970s – Expansion of R&D and European network
Launched Nootropil treat vertigo & events associated with ageing
Given its name to the class of “nootropics”
1988s – The birth of a blockbuster
Launched Zyrtec® Antihistamine
1990s - Globalisation
Acquisition of the pharma division of Fujirebio (Tokyo)
Acquisition of  Whitby Pharmaceuticals and Northampton Medical
1999 – Second blockbuster
Launched Keppra Epilepsy
2 major therapeutical domains
CNS & Allergy

5. Evolution of Pharmaceutical sales
Pharmaceuticals sales
Surface specialities sales
Increase of pharmaceutical sector in 90’s due to all of these first in class discoveries

6. Becoming a Pharmaceutical company
Summary of UCB activities in 2004
UCB annual report 2004

7. Evolution of Pharmaceutical sales
Stagnation of sales since 2001
UCB annual report 2001

8. UCB pharmaceutical revenue
2004:
UCB pharmaceutical revenue
Keppra+Zyrtec
=67% of revenue
Zyrtec lost its patent in 2006
Keppra lost its patent in U.S 2008, in Europe 2010
UCB annual report 2004

9. Loss of Zyrtec patent in 2007
Net Sales decreased by 49%
Pfizer royalties decreased by 80%
UCB annual report 2007

10. UCB has to face to the loss of a 2nd blockbuster patent
Keppra revenue
2008 $1.74 billion
But Keppra® loss of exclusivity in the U.S. November 2008
Keppra in 2008:
48% of its revenue
UCB has to face to the loss of a 2nd blockbuster patent
UCB annual report 2009

11. What can UCB do to save itself?
2004
UCB pipeline
Pipeline: Life cycle management
Need stronger pipeline with new products to survive
What can UCB do to save itself?
UCB annual report 2004

12. UCB Pharma « Long Term Strategy »

13. from Union Chimique Belge to biopharmaceutical company
Transforming UCB :
from Union Chimique Belge to biopharmaceutical company
UCB had strong knowledge in
Immunology & allergy  ZYRTEC
CNS  KEPPRA
High investment in R&D
UCB
Focus in primary care: Immunology&allergy
Focus in severe diseases : CNS
Become a biopharma
Specialize in CNS
This transformation is a Long term strategy : More profitable but More risked
UCB annual report 2009

14. Why becoming a Biopharma
An obligation to become a leader in Immunology & Allergy
Biopharmaceuticals drugs are more innovative
- complex molecules
- expensive to manufacture
- hard to manufacture for generic company
In 2002
With €1,5 billion of revenue in 2002
UCB can become a biopharmaceutical leader

15. 1st 2nd How becoming a biopharma:
Such a big transformation need money…
UCB sold all out-of area strategies
1st
2004
Divestment of Surface specialities sector:
Sale of film business € 320 millions
Sale of speciality chemical business € millions
€ millions
2nd
2006
Divestment of UCB-Bioproducts € 120 millions
Peptide synthesis
But UCB has no knowledge in biopharma…
UCB annual report 2004 and 2006

16. UCB Pharma enlargement
UCB acquires Celltech in 2004 for $2.7 billions
financed by the sale of film - surface specialities
Celltech is an English Biotechnology company
-created in 2000
-mergering of :
Specialized antibody company : CelltechChiroscience
with
Small molecules company : Medeva PLC
UCB annual report 2004

17. Celltech Celltech chiroscience
Leader in advanced antibody technologies
-Strong expertise in monoclonal antibodies
Acquire Celltech: Interesting for becoming a Biopharma
A strategic choice for UCB
Biotechnology knowledges fordable
UCB's pharmaceutical chemistry strengths
+ Celltech's biotechnology expertise particularly in monoclonal antibodies
Acquisition looks like Roche/Genentech
Sanofi/Genzyme
Elsevier Business Intelligence

18. Celltech chiroscience technology Antibody technology
UCB wants to acquire Celltech antibody technologies and patents:
Antibody technology platform to generate antibody
Celltech’s antibody fragment platform
Humanisation antibody technology

19. Celltech chiroscience technology SLAM technology
(selected lymphocyte antibody method)
Identification
&
Validation
Disease target

20. Celltech chiroscience technology Antibody to Hit Technology A2Hit™
Allow UCB to focus R&D on validated targets
-Antibodies validate the target
-UCB analyse specific contact atoms and 3D positions in space
CDR analysis
-This analysis enables UCB to design small molecule drugs
Synergy between biologicals and small molecule research

21. Celltech Strong R&D department Chiroscience Medeva PLC
Innovative portfolio: autoimmune inflammatory disorders and Oncology
Near-term pipeline
Supplementing UCB existing Allergy& Immulogy areas
UCB need quickly new drugs on the market
Keppra, Zyrtec lost their patent soon
Celltech annual report 2003

22. CDP 870
A pegylated antibody called :

23. A pegylated anti-TNF α antibody fragment
Cimzia
A pegylated anti-TNF α antibody fragment
PEG improved:
- drug solubility & stability
- Reduced dosage frequency
- Extended circulating life

24. Delivering 1 new medicine in Immunology
2009 – a turning point
Delivering 1 new medicine in Immunology
To compensate generic erosion on mature products
Crohn’s Disease
Launched in the U.S and Swiss (2008)
Rheumatoid Arthritis
Launched in the U.S and EU (2009)

25. Crohn’s disease Rheumatoid Arthritis Prevalence: 1 million people
Market: € 0,9 billion
Prevalence: 5,1 millions people
Market: € 5,8 billion
UCB annual report 2007 and 2008

26. for Rheumatoid Arthritis
Prescriptions in 2009
for Crohn’s Disease
for Rheumatoid Arthritis
UCB annual report 2009

27. Expected peak sales of 1,5 billion euro
Project of build in-house biotech microbial manufacturing in Bulle,Swiss.
UCB annual report 2009 and 2010

28. UCB develop Celltech Immunology pipeline
UCB annual report 2009

29. from Union Chimique Belge to biopharmaceutical company
Transforming UCB :
from Union Chimique Belge to biopharmaceutical company
UCB had strong knowledge in
Immunology & allergy  ZYRTEC
CNS  KEPPRA
High investment in R&D
UCB
Focus in primary care: Immunology&allergy
Focus in severe diseases : CNS
Become a biopharma
Specialize in CNS
This transformation is a Long term strategy which can be more profitable but more risked
UCB annual report 2009

30. UCB Antiepileptic experiences
About 50 millions people worldwide
300,000 U.S people have a first convulsion each year
The major firms include:
- Abbott laboratories
- Cephalon
- GSK
- J&J
- Novartis AG
- Pfizer
- Sanofi-Aventis SA
- Shire
- UCB Pharma

31. UCB Antiepileptic experiences
Antiepileptics Market Share by Revenue, 2008
Keppra 2nd major growth in antiepileptics medicines
Rank 3 in revenue

32. UCB Antiepileptic experiences
Keppra
Lyrica
Keppra: one of the most prescribe drug for epilepsy

33. UCB Antiepileptic experiences

34. Why UCB pharma focus on epilepsy market
Incidence in developed countries
50/100,000 person-years
Incidence increase in developing country
Africa: /100,000 person-years
Latin America /100,000 person-years
High unmet medical need in 1/3 of treated epilepsy patients
And Epilepsy = 50 millions people worldwide
UCB annual report 2009

35. Epilepsy area developing is not enough…
Development UCB pipeline
Brivaracetam
Binds to a protein SV2A
like Keppra® SV2A protection label until 2021
No affinity for receptors GABA, Glycine, NMDA, ionic current
But Binding stronger to SV2A than Keppra®
Clinical trial show good effect
Could be used even though Keppra® has no effect
Epilepsy area developing is not enough…
UCB annual report 2010

36. one of the world’s top neurology franchise
UCB Pharma enlargement
UCB acquires Schwarz Pharma in 2006 for $4.4 billions
Pharmaceutical company engages specialized in cardiovascular, gastro and urologic diseases
9 projects on the central nervous system at various stages of clinical development
Pipeline supplementing UCB
Pipeline near term
Schwarz + UCB =
one of the world’s top neurology franchise
Schwarz Pharma annual report 2004

37. New UCB Epileptic product
2009 – a turning point
New UCB Epileptic product
To compensate generic erosion on mature products
Epilepsy adjunctive therapy
Launched in the U.S (2009)
Launched in Europe (2008)
Diabetic neuropathic pain
Launched in the US (2009)
Launched in Europe (2008)
… a sodium canal inhibitor
UCB annual report 2009

38. Europe first launch in September 2008
Vimpat (lacosamide)
An important new treatment option in refractory epilepsy
Vimpat® launched
U.S. launched in June 2009
Europe first launch in September 2008
Label
Used with other medicines to treat partial epilepsy patients with no seizure control
30% of patients with epilepsy do not have seizure control even with the best available medications
Diabetic neuropathic pain
- 6,6 million patients with diabete have diabetic neuropathic pain
Can become a major Adjunctive therapy

39. Successful launch in the AED market
Vimpat® in epilepsy
Successful launch in the AED market
% of Vimpat prescription
total (TRx) and new (NRx) dispensed prescriptions
UCB annual report 2009

40. Growing rapidly in Europe
Vimpat® in epilepsy
Growing rapidly in Europe
Expected sales= € 1.2 billion
UCB annual report 2009 and 2010

41. UCB entered en parkinson market
2009 – a turning point
UCB entered en parkinson market
Resless legs syndrome
Parkinson disease
Launched in Europe (2009)
Approval in U.S
UCB annual report 2009

42. Restless legs syndrome
Parkinson disease
Restless legs syndrome
Neurological disorder:
insufficient formation and action of dopamine
4 millions patients worldwide
Neurological disorder:
move one's body to stop uncomfortable sensations
52 millions people are affected

43. Parkinson market : future major market without universal drug
Parkinson disease market
Market size (2008)
≈ $ 2.1 billion in 7 major markets
% of more than 65 years old
Demographic changes
an ageing population
U.E
U.S
Parkinson market : future major market without universal drug

44. Restless legs syndrome market
Curent treatment: Ropinirol (dopamine agonist)
Prevalence (2008) ≈ 54 millions patients in 7 major markets
Market size (2007) ≈ $ 588 millions in 7 major markets
UCB annual report 2007

45. Neupro (Rotigotine)
More than patients on Neupro® and now available in 20 markets
Neupro®, the Parkinson's patch - 24h continuous delivery
• Continuous delivery to provide stable drug levels
• Rotigotine, a dopamine agonist
Neupro®, the new treatment option for RLS

46. Neupro: Dopamine agonist
Interest of Neupro
Neupro: Dopamine agonist
Neupro clinical trial result
No inferior clinical results in comparaison with other dopamine agonists

47. Neupro in Parkinson Expected peak sales : € 400 millions
Neupro® Treatment Days Shares among Dopamine Agonists*,
Expected peak sales :
€ 400 millions
UCB annual report 2009 and 2010

48. Summary of these acquisitions
Better strong positions in their therapeutic areas
Protection against Pfizer
Near term pipeline
BUT
Celltech not only biologics in its pipeline and on the market
Schwarz Pharma: other therapeutic area products in its pipeline and on the market
Strategy:
deal with partners
 sales of out-of strategy products

49. Sales of out of strategy products
2007
Pierre Fabre: UCB OTC drugs (12 drugs):
Toclase, Cicatryl, Carbolevure ….
2008
Teva: commercialisation of respiratory medicines
2009
Wilex: UCB oncology preclinical portfolio
(antibody and small drugs)
2010
Actient : Cardiovascular and urologic produt for USA market
2010
UCB left primary care market in U.S and Europe.
Sanofi will market Xyzall in U.S
UCB annual reports

50. The only celltech small drugs kept by UCB
Xyrem®
filed in fibromyalgia
Fibromyalgia chronic syndrome
characterised by widespread muscle pain, stiffness and tenderness at specific points
Around 14 millions people
No prescription medicines approved yet for fibromyalgia in Europe
UCB annual report 2010

51. Sales of out of strategy geographic market
2009
AstraZeneca: marketing Cimzia® in Brazil
2009
GSK: Keppra, Zyrtec, Xyzall in 2nd market country
UCB annual report 2009

52. UCB licensing deals: Acquisitions
2005
Oxford Genome science: licence its Genome database
Millenium pharmaceuticals: collaboration to develop anti-inflammatory antibodies
2007
Crucell: agreement for its monoclonal antibody production technology
Biowa: license for its antibody-dependant cellular toxicity-enhanced antibodies
Transformation into Biopharmaceutical company
2009
Biotechnological pilot plant's laboratories in Braine l’alleud
UCB annual reports

53. Why those focuses Focus on severe diseases and geographic area
treated by small number of specialists
Relationship and regular dialogue with physicians, patients
PatientsLikeMe
Live beyond epilepsy
Parkinson's Voices
UCB annual reports

54. Why those focuses Focus in specialist physicians and geographic area
Small sales force
&
Licensing deals with partners

55. UCB « Long Term Strategy »
Green : Sales
Red : Acquisition
Breakthrough
Intense growth
Execution
Scale
Launch the pipeline
Transformation
CIMZIA®
VIMPAT ®
NEUPRO ®
Bioproducts +
Schwarz Pharma
R&D
Market
Reorganization
Surface specialities +
Celltech
Life long cycle management
2004
2005
2007
2010
…and beyond

56. But all these transformations increase the debt
UCB annual report 2009

57. They did what they had to do
Summary
Chemical company which discovered major first in class
Zyrtec, Atarax, Keppra, Nootropil
Took profit of these first in class in 90’s
Changed all his strategy to survive
Stop other traditional Activities
Invest in new technology where they’ve no experiences
Invest in R&D
They did what they had to do
A Courageous Strategy

58. Are you interested to join UCB biopharma ?
Uncomprehending…
Confused
perplexe
Benefic for my carrer

59. Thank you for your attention
Any question ?