1. 5 th Annual International Business Research Forum Globalization of the Pharmaceutical Industry Implications to Information Technology Bruce Fadem March 27, 2004

2. Pharmaceutical Industry Late 1980’s – Early 1990’s Halo effect Significant contributions to humankind Excellent profitability Local market focus Multinational

3. Pharmaceutical Industry Forces and Trends Forces  Rising healthcare costs  More complex and expensive new products  Greater regulatory oversight Trends  Globalization of the business  Complexity of government regulations  Tougher partnerships and integrations  Customer focus

4. Improve cost effectiveness and productivity through consolidation and standardization, i.e., operate as an integrated global company. Pharmaceutical Industry Necessary Response

5. Information Technology is an integral part of our business … IT systems play support role in planning and production IT used to plan and manage all aspects of production and capital management Enabling complex network of commercial and supply partners Business units manage own IT Systems designed for specific functions/areas within business; different systems across geographies Limited need for integration IT complexity and cost drives need for shared services Business functions increasingly linked; applications begin to be standardized Industry investing heavily in integrated systems IT used primarily to capture and manage data within silos IT solutions largely tactical and operational IT enabling more aspects of R&D process – optimizing and accelerating speed of clinical trials, predictive modeling and simulation, managing genomic data IT supports contact centers IT used to plan campaigns at market/channel level Data analytics used for creating targeted campaigns; enable measurement of promotional impact and proactive response measurement Getting closer to one-to-one marketing through internet and direct prescriber interactions Early 90sToday Enterprise Research and Development Manufac- turing and supply chain Commer- cialization Evolution of IT in the pharmaceutical industry

6. *Decision Support Systems TrendsBusiness challenges Globalization of the business Worldwide marketing and distribution – coordinate development and commercialization to allow global product management New sources of competition – continued growth of local competitors, particularly in off-patent drugs requiring increasing efficiency Increasing standardization of process and coordination through development of cost- effective connectivity of workforce Continued use of IT to improve manufacturing productivity/efficiency Complexity of government regulation Linking internal and external processes to ensure timely information flow with regulators Tighter control over regulatory interactions – proactively tracking and reporting regulatory changes; actively monitoring GCP, GLP, GMP, and GPP Social, economic and political pressure on pricing Allow real-time exchange and dissemination of regulatory information Electronic submission and regulatory reporting from centralized repositories Global pricing processes and management systems Tighter partnerships & integration Tracking, evaluation, and coordination of multiple external relationships to gain/assess value Seamless integration of business processes between enterprise functions and partners Connectivity/systems for collaboration, process integration, and contractual monitoring of network of partners Standardize applications and integration through middleware and data warehouses Customer focus Continued growth of one-to-one marketing with targeted promotion and services Consumer awareness and influence on prescriber decisions Close loop promotion- interactive detailing DTC and internet capabilities Promotional response modeling Potential for “real-time” interventions Potential IT needs Industry trends will focus attention on IT solutions to increase collaboration and controls Industry trends

7. Wyeth Global, research based pharmaceutical company $16 billion annual revenue 53,000 employees 100+ locations worldwide Established in 1926 Formerly named American Home Products

8. Wyeth’s global network of sites shows extent of IT integration into the business 1999 ~85 connected sites

9. Wyeth’s global network of sites shows extent of IT integration into the business 1999 2004 ~227 connected sites

10. Wyeth’s global network of sites shows extent of IT integration into the business 1999 2004 2009 ~275 connected sites

11. American Home Products Information Services Organization-Pre 1997

12. Wyeth Information Services Organization-2004

13. Wyeth IS Vision Common Business Processes Across the Company Enterprise Application System in Predominant Use IT Shared Services for Operations, Technology, and Processes Across the Globe IT “Follow the Sun” Centers of Excellence for Business Applications, Technology, and Operations Infrastructure Funding by Platform, Technology, and Application An Intense Focus on Delivering Value to Our Clients A Total Commitment to Cooperation, Communication, and Coordination

14. Keys to Effective Application of Information Technology