Bayer R&D Investor Day 2005

Transcription

1 Science For A Better Life HealthCare Bayer R&D Investor Day 2005 December 8, 2005 London Bayer R&D Investor Day 2005 Bayer HealthCare R&D Arthur J. Higgins Chairman of the Executive Board Bayer HealthCare Wolfgang Plischke President of the Pharmaceuticals Division Bayer HealthCare Bayer R&D Investor Day London December 8, 2005 Arthur J. Higgins / Wolfgang Plischke Slide 2

2 Forward Looking Statements This presentation contains forward-looking statements based on current assumptions and forecasts made by Bayer Group management. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. These factors include those discussed in our public reports filed with the Frankfurt Stock Exchange and with the U.S. Securities and Exchange Commission (including our Form 20-F). The company assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments. Bayer R&D Investor Day London December 8, 2005 Arthur J. Higgins / Wolfgang Plischke Slide 3 Bayer HealthCare Agenda Bayer HealthCare R&D Smart R&D Strategy Pharma R&D Arthur J. Higgins Wolfgang Plischke Driving a Paradigm Shift in Cancer Therapy Discovery / Early Pipeline Update on Joseph J. Catino Susan L. Kelley Addressing High Medical Need in Cardiovascular Diseases Discovery / Early Pipeline Andreas Busch Update on Factor a Inhibitor Frank Misselwitz Building on Competence in Life Cycle Management Trasylol Kemal Malik Kogenate Michael A. Fournel Summary Arthur J. Higgins Bayer R&D Investor Day London December 8, 2005 Arthur J. Higgins / Wolfgang Plischke Slide 4

3 Key Messages Smart R&D strategy built on focus, critical mass, worldclass capabilities and balanced portfolio A pharma pipeline that has the potential to transform our business Exciting milestones ahead Bayer R&D Investor Day London December 8, 2005 Arthur J. Higgins / Wolfgang Plischke Slide 5 The Bayer HealthCare Strategy Be one of the world s leading diversified healthcare companies Aspire for leading position in each market segment in which we compete All businesses except Pharma are among top 4 in their segments and can achieve benchmark performance Strengthen Pharma/BP with focus on specialty and exceed market growth Maximise shareholder value and achieve overall EBITDA margin of 23% longer term BHC follows a clear strategy to deliver against these aspirations Bayer R&D Investor Day London December 8, 2005 Arthur J. Higgins / Wolfgang Plischke Slide 6

4 Executing the Bayer HealthCare Strategy in Pharma/BP Strengthen Pharma/BP with focus on specialty Maximise profitability of primary care business while increasing sales generated by specialty products Focus of Pharma/BP R&D on oncology, cardiovascular risk management / hemophilia Maximise value of late-stage Pharma pipeline Drive life cycle management of Kogenate and Trasylol Actively pursue inlicensing opportunities Bayer R&D Investor Day London December 8, 2005 Arthur J. Higgins / Wolfgang Plischke Slide 7 Executing the Bayer HealthCare Strategy in Consumer Care Create world-leading Consumer Care business Maximize benefits from acquisition of Roche Consumer Health Fully exploit strength of global brands Accelerate growth in Eastern Europe, Asia-Pacific Become partner of choice for Rx / OTC switches Actively participate in market consolidation Bayer R&D Investor Day London December 8, 2005 Arthur J. Higgins / Wolfgang Plischke Slide 8

5 Executing the Bayer HealthCare Strategy in Diagnostics, Diabetes Care and Animal Health Outpace the market in Diagnostics, Diabetes Care and Animal Health Focus on marketing excellence to drive strong global brands across all businesses (Advia, Ascensia, Advantage) Maximise R&D output and increase emphasis on life cycle development Accelerate growth in Asia and Latin America Actively pursue inlicensing and local opportunities Bayer R&D Investor Day London December 8, 2005 Arthur J. Higgins / Wolfgang Plischke Slide 9 This is a Strategy That is Already Working Milestones Q Since July Major 2004Milestones Achieved Q Sales 2,007m clean EBIT 217m clean EBIT margin 10.8% Acquisition of Roche Consumer Health Strategic alliance with Schering-Plough Agreement for longer-acting Kogenate Realignment of Pharma R&D strategy Buyback of Levitra rights ex-us from GSK Sale of plasma business Filing of in US and EU Cooperation with J&J for factor a inhibitor Sales 2,373m clean EBIT 355m clean EBIT margin 15.0% Bayer R&D Investor Day London December 8, 2005 Arthur J. Higgins / Wolfgang Plischke Slide 10

6 R&D is Key to Pursuing the HealthCare Strategy R&D on sales margins in 2004 Industry Average 22% Bayer Committed to a competitive R&D spending level in each division 15% Focusing resources on key projects 9% 11% 9% 8% Target: Pharma R&D costs approx % of sales 3% 3% BHC R&D budget 2005: approx. 1 billion Pharma Diabetes Care Diagnostics Consumer Care Animal Health Bayer R&D Investor Day London December 8, 2005 Arthur J. Higgins / Wolfgang Plischke Slide 11 Important New Research Projects Outside Pharma/BP Creating additional value from a base of successful products Enhancing product differentiation and repositioning Proximity to the market life cycle innovations reflecting market needs Division CC DS DC AH Project Aspirin Pravachol ADVIA Molecular diagnostics Shogun Autodisc Profender Advocate Therapeutic Area Primary and secondary prevention of CV disease Cardiovascular-Risk-Management Centaur CP system and assays New kpcr system New sensor technology Next generation test strips Endoparasiticide (spot-on for cats) Endo-/Ectoparasiticide (spot-on for dogs) Peak Sales Potential < 100m m Bayer R&D Investor Day London December 8, 2005 Arthur J. Higgins / Wolfgang Plischke Slide 12

7 Key Messages Maximise the value of our Pharma pipeline Alignment of our Pharma R&D strategy executed A pipeline that has the potential to transform our Pharma business Delivered on commitments Pharma R&D achievements 2005 Exciting milestones ahead Bayer R&D Investor Day London December 8, 2005 Arthur J. Higgins / Wolfgang Plischke Slide 13 Alignment of our Pharma R&D Strategy Executed Focus on indications with high medical need and with high innovative potential: oncology and cardiovascular risk management "Proof-of-concept" (early evidence of efficacy in humans) as first key milestone in the R&D process Maximise potential of marketed products through increased product-related research Increasing the probability of success and reducing cycle times through targeted investment in innovative research technologies Bayer R&D Investor Day London December 8, 2005 Arthur J. Higgins / Wolfgang Plischke Slide 14

8 Competitive Technology Platform Screening Technologies High Throughput Screening Kinase Profiling 200,000/day 1,536 format Chemistry Technologies Compound Library 1.7m Medicinal Chemistry compounds Combinatorial Chemistry Computational Chemistry Biotechnologies Monoclonal Antibodies Theranostics Genomics Pharmaco- & Toxicogenomics RNA Interference Bioinformatics Pharmacophore- Informatics Bayer R&D Investor Day London December 8, 2005 Arthur J. Higgins / Wolfgang Plischke Slide 15 Strong Technologies Created Key Assets Screening Technologies High Throughput Screening Kinase Profiling Factor a Inhibitor Chemistry Technologies Compound Library Medicinal Chemistry Combinatorial Chemistry Computational Chemistry Levitra Bayer R&D Investor Day London December 8, 2005 Arthur J. Higgins / Wolfgang Plischke Slide 16

9 Promising Pharma/BP Pipeline Built from New Products and Life Cycle Opportunities New Compounds Oncology Oncology Oncology Oncology Cardiovascular Cardiovascular Diabetes Diabetes Oncology Dual-Act. Inh. Oncology Angiogen. Inh. Coronary Heart D. Adenosine A1Ag Acute Heart Failure sgc Activator Pulmonary Hypert. sgc Stimulator Diabetes Dual Act. Pept. COPD Elastase Inh. Dyslipidemia CETP Inhibitor DVT Treatment Factor a Inh. Stroke Prevention in A fib Factor a Inh. Oncology / Other cancer types Oncology / HCC Oncology / Melanoma VTE Prevention Factor a Inh. Oncology / NSCLC Oncology / RCC Pre-Clinic: 11 Phase I: 12 Phase II: 3 Phase III: 6 Registration: 1 Life Cycle Management Recombinant Aprotinin Inhalable Form. Cipro Protein Modification rfviii New indications Levitra Fast Dissolv. Tablet Levitra Short Course Ther. Avelox Liposomal Form. Kogenate Bayer R&D Investor Day London December 8, 2005 Arthur J. Higgins / Wolfgang Plischke Slide 17 Other surgeries Trasylol New indications Avelox As of Dec 2005 Without products available for outlicensing Without anti-infectives (spin-off) Innovative Early-Stage Pipeline At least three pipeline projects expected to move into phase II in new development projects to be tested for efficacy in humans in 2006 BAY BAY BAY BAY BAY BAY BAY Adenosine agonist Coronary heart disease Guanylate cyclase stimulator Pulmonary hypertension Guanylate cyclase activator Acute heart failure CETP inhibitor Dyslipidemia Dual-acting peptide Diabetes Dual-acting kinase inhibitor Cancer Angiogenesis inhibitor Cancer Bayer R&D Investor Day London December 8, 2005 Arthur J. Higgins / Wolfgang Plischke Slide 18

10 Sustainable Value Contribution from Life Cycle Management New indications, new formulations and combinations offer additional attractive growth opportunities for marketed products Life cycle management of marketed products provides an attractive risk-reward balance Trasylol Kogenate Avelox Levitra Additional surgery indications (e.g. hip, spinal) Recombinant product Liposomal formulation Kogenate protein modification Shorter duration of therapy New indications: Skin and soft tissue infections, gastrointestinal infections Faster-dissolving formulation New indications Bayer R&D Investor Day London December 8, 2005 Arthur J. Higgins / Wolfgang Plischke Slide 19 A Pipeline That Has The Potential to Transform Our Pharma Business is driving targeted cancer therapy Addressing high unmet medical need in antithrombotic therapy with our factor a inhibitor Exploitation of prophylactic use of FVIII through liposomal Kogenate formulation Continued future growth of Trasylol driven by new indications and development of recombinant product Peak sales potential BAY Factor a Inhibitor Kogenate Trasylol > 1 billion (RCC, HCC, Melanoma, NSCLC) > 1 billion > 1 billion > 500 million Bayer R&D Investor Day London December 8, 2005 Arthur J. Higgins / Wolfgang Plischke Slide 20

11 Delivered on Commitments: Pharma R&D Achievements 2005 Targets Q1'05 Update on Execution Q1'05 Initiation of phase III trials in HCC Delayed disease progression in phase III RCC study Q2'05 phase ll data Q2'05 Doubling of Progression-Free Survival in phase III RCC trial Initiation of phase lll trials in melanoma Initiation of phase III trials in melanoma Q3'05 Factor a inhibitor phase ll data Q3'05 Phase II studies indicate that BAY is safe and effective in preventing VTE : US / EU filing for approval in RCC Q4'05 Decision on partnering for factor a inhibitor Q4'05 Partnership with Johnson & Johnson data at ECCO Positive phase III RCC data Phase lll clinical trials for factor a inhibitor OD formulation for phase III studies in VTE prevention : Identification of fourth cancer type : NSCLC as fourth cancer type in phase III Bayer R&D Investor Day London December 8, 2005 Arthur J. Higgins / Wolfgang Plischke Slide 21 Exciting Milestones Ahead 1H'06 2H'06 : US launch : Start of phase III trials in NSCLC : Initiate clinical studies in adjuvant treatment of RCC through collaboration with cooperative groups in US Factor a inhibitor: Initiate phase III trials in chronic indications Factor a inhibitor: Presentation of full data set of phase II dose finding data for chronic indications Start of phase II/III clinical study for Kogenate liposome formulation : EU launch Trasylol: NDA submission for hip replacement surgery At least three pipeline projects expected to move into phase II Bayer R&D Investor Day London December 8, 2005 Arthur J. Higgins / Wolfgang Plischke Slide 22

12 Bayer HealthCare Agenda Bayer HealthCare R&D Smart R&D Strategy Pharma R&D Arthur J. Higgins Wolfgang Plischke Driving a Paradigm Shift in Cancer Therapy Discovery / Early Pipeline Update on Joseph J. Catino Susan L. Kelley Addressing High Medical Need in Cardiovascular Diseases Discovery / Early Pipeline Andreas Busch Update on Factor a Inhibitor Frank Misselwitz Building on Competence in Life Cycle Management Trasylol Kemal Malik Kogenate Michael A. Fournel Summary Arthur J. Higgins Bayer R&D Investor Day London December 8, 2005 Arthur J. Higgins / Wolfgang Plischke Slide 23 Science For A Better Life HealthCare Bayer R&D Investor Day 2005 December 8, 2005 London