1. Viagra RFID Project AIDC Conference October 5, 2006 Rich Hollander Senior Director, Packaging Services Tim Marsh Manager, Global Package Technology and Testing

2. Original Project Objective By year-end 2005, incorporate RFID tags into the packaging of all Viagra trade product destined for the U.S. market. Provide a means to authenticate at the pharmacy level. Viagra® (sildenafil citrate) is a registered trademark of Pfizer Inc.

3. Why are we doing this? Patient Safety – Deter counterfeitingPatient Safety – Deter counterfeiting FDA GuidanceFDA Guidance Regulatory (pedigree) requirementsRegulatory (pedigree) requirements Customer driversCustomer drivers Pedigree compliancePedigree compliance Operational benefitsOperational benefits

4. Why Viagra? Viagra is Pfizer’s most highly counterfeited productViagra is Pfizer’s most highly counterfeited product Viagra is produced on one line, in one facilityViagra is produced on one line, in one facility The volume of Viagra is reasonableThe volume of Viagra is reasonable Consistent with FDA guidance regarding the tagging of highly counterfeited items in 2005Consistent with FDA guidance regarding the tagging of highly counterfeited items in 2005 Viagra® (sildenafil citrate) is a registered trademark of Pfizer Inc.

5. What is being done? A unique ID (EPC #) is associated with every Viagra bottle, case and pallet distributed in the U.S.A unique ID (EPC #) is associated with every Viagra bottle, case and pallet distributed in the U.S. High frequency (13.56 MHz) RFID tags are being utilized on the bottles and ultra high frequency (915 MHz) RFID tags on the Viagra cases and palletsHigh frequency (13.56 MHz) RFID tags are being utilized on the bottles and ultra high frequency (915 MHz) RFID tags on the Viagra cases and pallets An RFID tag and DataMatrix (2D) bar code is incorporated into the labeling of every Viagra bottleAn RFID tag and DataMatrix (2D) bar code is incorporated into the labeling of every Viagra bottle Linear bar codes for case and pallet RFID backupLinear bar codes for case and pallet RFID backup Viagra® (sildenafil citrate) is a registered trademark of Pfizer Inc.

6. RFID High Frequency Tag

7. Viagra Label Viagra® (sildenafil citrate) is a registered trademark of Pfizer Inc.

8. Item Level Label Tag INSERT REVISED IMAGE OF RFID BOTTLE LABEL WITH HF TAG ILLUSTRATION 2D Data Matrix with EPC Number RFID Tag Embedded in Label with EPC Number

9. Case Level Label Tag INSERT REVISED IMAGE OF CASE w/ UHF Label & Wrap-Around HDMA Label RFID Tag Embedded in Label with Additional Code 128 Barcode; both with EPC Number

10. What else was done? Modifying our packaging operationsModifying our packaging operations Reading and writing to the tags on-line (not prewritten tags and not applied in the DC)Reading and writing to the tags on-line (not prewritten tags and not applied in the DC) Capturing information about the EPC at the point of commissioning, shipping, and as it’s authenticatedCapturing information about the EPC at the point of commissioning, shipping, and as it’s authenticated Modifying our logistics operations to ship from all U.S. Pfizer logistics centersModifying our logistics operations to ship from all U.S. Pfizer logistics centers Enabling an authentication capability for wholesale, retail, pharmacy useEnabling an authentication capability for wholesale, retail, pharmacy use

11. Labeling Operation in France

12. RFID Item level tag on Label

14. Viagra RFID Key Decisions Made During ImplementationKey Decisions Made During Implementation Utilize HF tags at the item level and UHF at the case and pallet levelUtilize HF tags at the item level and UHF at the case and pallet level Read and Write to tags online vs. prewritten tags (scaleable)Read and Write to tags online vs. prewritten tags (scaleable) Develop a means to uniquely identify each bottle, case and pallet on lineDevelop a means to uniquely identify each bottle, case and pallet on line Incorporate a redundant 2D bar code into the labelingIncorporate a redundant 2D bar code into the labeling Modify packaging and logistics operationsModify packaging and logistics operations Leverage existing technologyLeverage existing technology Minimize data integrationMinimize data integration Implement an authentication serviceImplement an authentication service Adopt EPC numbering scheme without NDC (privacy)Adopt EPC numbering scheme without NDC (privacy) Disclose use of RFID on Viagra labelDisclose use of RFID on Viagra label Enable all 3 Logistics Centers to ship tagged productEnable all 3 Logistics Centers to ship tagged product

15. Viagra RFID Early Learnings RFID Implementation is costly and complex – in excess of 75 people involved during past year at a cost of approximately $5 millionRFID Implementation is costly and complex – in excess of 75 people involved during past year at a cost of approximately $5 million There is much yet to be learned about the technology and process implicationsThere is much yet to be learned about the technology and process implications Additional experience with tagged product in the market is requiredAdditional experience with tagged product in the market is required The Cost/Benefit around RFID is not yet clearThe Cost/Benefit around RFID is not yet clear Key Decisions are required about how the technology is to be deployed – some (deter counterfeiting of high risk items) vs. all items (track and trace all products/pedigree)Key Decisions are required about how the technology is to be deployed – some (deter counterfeiting of high risk items) vs. all items (track and trace all products/pedigree) Pleased with our choice of frequencies and internal performance thus farPleased with our choice of frequencies and internal performance thus far Few trading partners are ready to read tagged productFew trading partners are ready to read tagged product Many Manufacturers and others have adopted a “wait-and- see” approachMany Manufacturers and others have adopted a “wait-and- see” approach

16. Key “Take Away” Points This is a Patient Safety initiativeThis is a Patient Safety initiative Technology alone will not deter counterfeitingTechnology alone will not deter counterfeiting Authentication verifies the EPC authenticity not the product authenticityAuthentication verifies the EPC authenticity not the product authenticity We are using passive RFID tags and will not be collecting any patient level informationWe are using passive RFID tags and will not be collecting any patient level information We will NOT be spying on patientsWe will NOT be spying on patients

17. Other Viagra RFID Key Messages Technology is only one component of an overall strategy required to address counterfeitingTechnology is only one component of an overall strategy required to address counterfeiting Action must also be taken to address business practices, legislative and regulatory solutions, and enhanced enforcementAction must also be taken to address business practices, legislative and regulatory solutions, and enhanced enforcement RFID offers promise to further secure the supply chain but will require a significant investment throughout the supply chain and years to implementRFID offers promise to further secure the supply chain but will require a significant investment throughout the supply chain and years to implement We believe mass serialization of items affords the greatest protection against counterfeiting when coupled with the secure exchange of information about the physical movement of the productWe believe mass serialization of items affords the greatest protection against counterfeiting when coupled with the secure exchange of information about the physical movement of the product

18. RFID 2006 Assess performance of the Viagra tagged product in the marketAssess performance of the Viagra tagged product in the market Work with trading partners and collect metrics; ongoing informal feedback and formal quarterly surveysWork with trading partners and collect metrics; ongoing informal feedback and formal quarterly surveys Encourage additional retail and wholesale participationEncourage additional retail and wholesale participation Assess acceptance of the technology in the marketAssess acceptance of the technology in the market Evaluate track-and-trace capability vs. EPC authenticationEvaluate track-and-trace capability vs. EPC authentication Continue to drive for industry standards regarding tags, frequencies, and data exchangeContinue to drive for industry standards regarding tags, frequencies, and data exchange Address data sharing issuesAddress data sharing issues

19. RFID Strategy 3Q 2006 Analysis to include the following:3Q 2006 Analysis to include the following: Data regarding market usage and impact, lessons learned, etc.Data regarding market usage and impact, lessons learned, etc. Technology assessmentTechnology assessment Track-and- trace outlook vs. authenticationTrack-and- trace outlook vs. authentication Customer acceptanceCustomer acceptance Other potential applications (return goods, recalls, pedigree compliance, other operational efficiencies)Other potential applications (return goods, recalls, pedigree compliance, other operational efficiencies) Regulatory requirements (Manufacturers and others)Regulatory requirements (Manufacturers and others) External environmentExternal environment Cost/Benefit Analysis (data integration, validation, etc)Cost/Benefit Analysis (data integration, validation, etc) Decision on continued Viagra taggingDecision on continued Viagra tagging Recommendations regarding the technology and other Pfizer brandsRecommendations regarding the technology and other Pfizer brands

20. Beyond 2006 Based on 2006 findings…..Based on 2006 findings….. Target additional products for mass serialization (2D, RFID, other) using a risk-based approachTarget additional products for mass serialization (2D, RFID, other) using a risk-based approach “Partner” with select trading partners and technology vendors to advance the mass serialization of items and create greater value (inventory visibility/planning)“Partner” with select trading partners and technology vendors to advance the mass serialization of items and create greater value (inventory visibility/planning) Continue to assess the technology and its ability to deter counterfeiting (RFID tags being counterfeited?)Continue to assess the technology and its ability to deter counterfeiting (RFID tags being counterfeited?)

21. E- Authentication Authentication Features and Sample Screens

22. Verification Summary

23. Bulk Authentication Results

24. Unrecognized EPC

25. Thank you!