Hospira 2007 Investor Day

Transcription

1 0 Hospira 2007 Investor Day

2 Hospira 2007 Investor Day Research and Development Edward A. Ogunro, Ph.D. Senior Vice President, Research & Development and Medical Affairs, and Chief Scientific Officer Advancing Wellness through the right people and the right products

3 R&D Vision Driving long-term profitable growth World-class global R&D organization High quality, differentiated products Industry-leading cycle times Innovative in our adoption of new technologies 2

4 Hospira R&D Roadmap Driving Innovation World-class global R&D Differentiated products Biogenerics Proprietary devices Operational Excellence Stronger pipeline Double-digit increase in R&D investment 30%+ increase in productivity Pre-spin R&D Under invested Inefficient process Long cycle times

5 Pre-spin R&D Dynamics Driving Innovation World-class global R&D Differentiated products Biogenerics Proprietary devices Operational Excellence Stronger pipeline Double-digit increase in R&D investment 30%+ increase in productivity Pre-spin R&D Under invested Inefficient process Long cycle times

6 Growth of R&D Spending* Adjusted** R&D $180 $160 44% increase $140 $120 MM $100 $80 $60 $40 $20 $ * Does not include Mayne ** This is a non-gaap financial measure. Descriptions of the adjustments made to the nearest GAAP measure and a full reconciliation to the GAAP results can be found in the accompanying reconciliation slides.

7 R&D Priorities Converting innovation into sales Align with global business strategies Differentiated generic injectables (simple and complex molecules) Precedex label expansion Platform device technologies which leverage Symbiq and Hospira MedNet 6

8 Key Process Initiatives Since Spin-off Governance Development process Cycle-time reduction Customerinspired design Driven by Six Key Principles 1. Cross-functional R&D 2. Senior management has portfolio ownership 3. Strong role of business units 4. Insistence on process discipline 5. Empowerment of project teams 6. Right people, right resources, right capacity 7

9 New R&D Governance Structure Align R&D with global business strategy Hospira Product Review Committee HPRC Functional Management Core Project Teams Business Teams 8

10 Development Process HPRC Stage Gates 1 Concept 2 Project Definition 3 Design or Development 4 Transfer or Submission 5 Post-launch 9

11 Benefits of New Governance Structure Flexibility Real-time decisions Company-wide ownership Transparency No politics Maximized portfolio value 10

12 Cycle Time Reduction for Standard Generics Hospira s Average Product Development Time Time in Months /03 09/03 06/06 01/07 11

13 Specialty Injectable Pharmaceuticals Pipeline Just a Few 31 Compounds Pre Advancing Wellness Compounds 43 Compounds 12

14 Leveraging External Expertise Hospira s Approach to Device Development Reducing cycle time by as much as 40%... Requirements Industrial / Mechanical... while software complexity increased five-fold Manufacturing Hospira Device Team Integrates External Resources Systems Architecture Electronics / Software Power Supply User Interface Mechanism 13

15 Devices Pipeline 18 Products Just a Few Pre Advancing Wellness Products 21 Products 14

16 Hospira R&D Competencies Core Competencies Pharmaceuticals Devices Drug Formulation Delivery System Generic Biological Proprietary MMS n/a n/a Engineering Clinical Studies Program Management n/a n/a n/a n/a = not applicable 15

17 Post-spin Improvements Driving Innovation World-class global R&D Differentiated products Biogenerics Proprietary devices Operational Excellence Stronger pipeline Double-digit increase in R&D investment 30%+ increase in productivity Pre-spin R&D Under invested Inefficient process Long cycle times

18 Global Pharmaceutical R&D Landscape High Biogenerics Proprietary Pharma Development Cost IP Strategies ICEs Super Generics Low Low Smallmolecule Generics Bioequivalence Studies Product Complexity High 17

19 Global Device R&D Capabilities Focused on developing technology that can be leveraged across product lines Platform technologies that can be leveraged into future products, e.g., Symbiq infusion system Drug libraries Wireless communications Modularity 18

20 Next-generation Product Development Driving Innovation World-class global R&D Differentiated products Biogenerics Proprietary devices Operational Excellence Stronger pipeline Double-digit increase in R&D investment 30%+ increase in productivity Pre-spin R&D Under invested Inefficient process Long cycle times

21 Critical Success Factors Innovation Execution Differentiated Products and Customer-Driven Design Speed and Efficiency Collaboration Alliances and Partnerships Investment Maximize Pipeline 20