E VALUATING A P OTENTIAL A CQUISITION OF B IOGEN I DEC Anna Arnold, Samina Islam, Sean Landrette, Duc Nguyen November 30 th, 2007

Pfizer Should Acquire Biogen Idec Pfizer’s Alliance Options Biogen’s Pipeline Drugs Benefits and Risks of Acquisition Valuation and Purchase Price Recommendation

Pfizer Present Standing Uncertainties and Setbacks Maintain financial performance and generate shareholder value Diversify portfolio and renew focus on R&D Divestiture of Exubera inhaled-insulin - $2.8 billion charge Lackluster share performance - down 7% this year Encroaching patent expirations - includes Lipitor and Viagra - Ranbaxy patent challenge Goals and Priorities

Strategic Alliance Options Market Superiority Acquire exclusive partnership/ rights Licensing optionsParity with Competitors 1 2

Strategic Alliance Recommendation Market Superiority Acquire exclusive partnership/ rights Licensing optionsParity with Competitors 1 2 Enables Pfizer to amass the highest quality portfolio of compounds Fulfill unmet needs of people with MS to 2010 and beyond Places Pfizer at a competitive advantage and forefront in biologics - minimizes threats from generic developments

Biogen IDEC: Opportunity Knocks Unrivaled leadership in MS with promising late-stage pipelines Unsurpassed biologics capability AVONEX - 11 years of strong performance with 12% growth y-to-y TYSABRI - 17K patients to reach 100K milestone by 2010 RITUXAN - $811 revenue with 14% growth since 2005, including additional indications BG-12 RITUXAN 2H7 oral VLA-4 daclizumab Phase II 40% Numerous intellectual properties

Many Treatment Strategies in Multiple Sclerosis Autoimmune ActivationMigration and AmplificationDemyelination and Nerve Damage Immune ModulationTissue Repair

BIOGEN COMPETITOR MECHANISM Avonex Rebif/Betaseron Interferon,Immune Modulation Rituxan/Zevalin B-cell depletion, Immune Modulation Tysabri/CDP323 Anti-Migration, Immune Modulation Fumaderm/BG-12 Unknown Target, Immune Modulation Daclizumab Anti-IL2, Immune Modulation Copaxone T-cell (anti-inflamatory), Immune Modulation FTY720 White Cell Egress, Immune Modulation RDP58 Anti-inflammatory, Immune Modulation Novantrone Immune Cell Depletion, Immunosuppressive Anti-Lingo/Nogo Re-Myelination, Tissue Repair Biogen’s Pipeline Offers Mechanistic Diversity

Demand for MS drugs will only increase with aging population and increased life expectancy improved diagnostic tools Benefits The Benefits of Acquiring Biogen IDEC Risks Possible product obsolescence with technological innovation Pipeline drugs may never reach full market potential halted clinical trials lack of regulatory approvals Prohibitive costs of commercialization Complexities of partnerships and merging of corporate operations Pfizer’s strength in marketing can penetrate the untapped market Biogen has MS drugs in late stages of clinical trials that may have multiple indications Biogen’s drugs align with Medicare coverage Biogen has expertise in MS

Biogen’s Revenues and Profits Have Been Steadily Increasing

Pfizer Should Bid for Biogen IDEC Bid Prize for Pfizer$23 Billion Highest Bid Price$28 Billion

Q UESTIONS ?

Biogen’s Solvency Ability and Growth Rates are High

Biogen’s Revenues and Profitability Have been Steadily Growing

Market Capitalization

Total Liability includes Total Debt, Minority Interest and Pref. Equity. Net Liability includes Total Liability, net of Cash and Short Term Investments. TEV includes Market Cap and Net Liability. Total Capital includes Common Equity and Total Liability. Liability, Equity, TEV, Market Cap

Biogen MS Product Pipeline