Building the next generation biopharma

1 Building the next generation biopharma Roch Doliveux CEO May 29, 2007 Agenda 2 The next generation biopharma leader May 29, 2007 UCB today Acquisition of Schwarz Pharma Research & Development Outlook 2007 World biopharma market: € 482 billion (+7%) 3 The next generation biopharma leader May 29, 2007 Pharmaceuticals (2006) Top 10 products global sales range Pharmaceutical Market Biologicals (2006) Top 10 products global sales range Biologicals Market € 2.7 – 10.3 billion Annual growth 4.6% € 1.6 – 3.3 billion Annual growth 17.8% Source: Evaluate – March 20, 2007 and IMS Health Global Pharmaceutical Report 06 Amongst original brands specialist driven market is main source of growth Primary care zero growth in Europe Original brands North America 100 25 100 4 The next generation biopharma leader May 29, 2007 Europe 50 80 SHARE OF SALES (LCD) 20 SHARE OF SALES (LCD) 80 40 30 GROWTH 20 40 10 20 40 10 20 5 0 0 2002 2003 2004 2005 2006 0 0 2002 2003 2004 2005 2006 -10 Primary care Primary care growth Specialist driven care Specialist driven care growth Source: IMS Health MIDAS MAT December 2006 – Ethical Non Generic Market Only GROWTH 60 15 60 Primary care growth decline has affected major players UCB suffering in Primary care: excellent in Specialist driven 5 The next generation biopharma leader May 29, 2007 Primary Driven Care European Rank S-A GSK Pfizer Novartis AZ Market Share % 8 7 7 Growth % Share of Portfolio % 60 78 68 European Rank Specialist Driven Care Market Share % 9 8 6 5 5 4 3 3 3 3 49 Growth % Share of Portfolio % -3 0 -7 Roche S-A Novartis J&J Pfizer Lilly AZ N-N GSK Abbott 26 7 11 3 10 3 11 10 0 13 10 80 40 37 67 32 79 30 92 22 66 46 7 5 4 4 3 2 2 2 3 6 2 7 7 -12 63 69 75 70 92 60 60 MSD BSP Servier M&S Wyeth Top 10 corps UCB (33) 48 0.5 -1 -3.1 68 58 Top 10 corps UCB (31) 0.6 25.6 42 Source: IMS Health: MIDAS MAT Dec 2006 Biopharmaceutical leaders 6 The next generation biopharma leader May 29, 2007 Amgen Genentech Novo Nordisk Merck + Serono* UCB + Schwarz Genzyme UCB 23% 23% 16% 22% 25% 20% 28% 40% 21% 25% 10.4 5.7 5.2 4.0 3.2 2.4 2.2 1.3 1.2 1.1 % Investment in R&D Net Sales 2006 (€ billion) Biogen IDEC Lundbeck Shire * Merck Ethicals only (excludes Generics, CHC and Chemicals) Vision - since 2004 7 The next generation biopharma leader May 29, 2007 To build a global biopharmaceutical leader, based on unique blending of innovation, entrepreneurship and proven experience, bringing to specialists first, new medicines to treat patients suffering from severe diseases. 2006 Solid revenue and profit growth 8 The next generation biopharma leader May 29, 2007 2006 Revenue up 11%* 3000 (8% as reported) 2 523 2 341 +36% 2400 Keppra® Xyzal® Zyrtec® Royalties Other products Keppra® € million 1800 Xyzal® Zyrtec® +13% +0% 1200 Royalties 600 +12% -9% Other products 0 2005 2006 (36% as reported) ... double digit profit growth, up 13%* * on a like for like basis, excluding contribution of divested businesses/products and one-off items Net sales Therapeutic areas 9 The next generation biopharma leader May 29, 2007 2005 Allergy** 34% 37% CNS* Allergy** 32% 2006 CNS* 45% 29% Others Others 23% € 2.0 billion * CNS: Keppra®, Nootropil®, Metadate™ CD, Atarax® ** Allergy: Zyrtec D®, Zyrtec®, Xyzal® € 2.2 billion UCB + Schwarz Pharma: strengthens and diversifies specialty portfolio 10 The next generation biopharma leader May 29, 2007 UCB 2006 Net Sales (€2.2 billion) Pro Forma 2006 Net Sales (€3.2 billion) Neurology Neurology 45% 33% 11% Gastro Intestinal 32% 23% Allergy Other Allergy 22% 13% 21% Other Cardio Vascular Net sales Geography 11 The next generation biopharma leader May 29, 2007 2005 Europe 38% 44% North America Europe 38% 2006 North America 46% 7% Emerging Markets 11% Japan 7% Emerging Markets 9% Japan € 2.0 billion € 2.2 billion Leader in epilepsy and allergy 12 The next generation biopharma leader May 29, 2007 # 1 in Epilepsy (U.S.A. and E.U.)* # 1 in Allergy (Worldwide) * Source: IMS (Value, US / EU5, MAT Q4/06) Epilepsy only Keppra® Sustained high double-digit growth 13 The next generation biopharma leader May 29, 2007 Net sales € 761 million in 2006 800 700 600 500 +36% +35% € million 400 300 200 100 0 +34% +67% U.S.A. Europe Emerging markets Total 2005 2006 Keppra® New indications and formulation in epilepsy 14 The next generation biopharma leader May 29, 2007 Europe (EMEA) Add –on therapy • Partial on-set seizures • Adult • Pediatric • Generalised seizures • Juvenile Myoclonic • Primary Tonic Clonic Monotherapy Intravenous administration Geographic expansion Approved Approved Approved Approved May 2006 Jan 2007 U.S.A. (FDA) Approved Approved Sep 2000 Sep 2005 Approved Approved Nov 1999 Jun 2005 Approved Approved Approved Aug 2006 Mar 2007 Aug 2006 Apr 2006 Aug 2006 South Korea China Jan 2007 Mar 2007 Keppra® U.S.A.: Market leader 15 The next generation biopharma leader May 29, 2007 35 29.1% 30 Market share in value - epilepsy 25 20 15 10 5 0 02/02 GABAPENTIN OXCARBAZEPINE 02/03 02/04 02/05 KEPPRA® TOPIRAMATE 02/06 02/07 LAMOTRIGINE ZONISAMIDE Source: IMS (Epilepsy market share in value, US, MAT, Feb. 2007) Keppra® Europe: Market leader 16 The next generation biopharma leader May 29, 2007 35 30 Market share in value - epilepsy 25 20 15 10 5 0 25.8% 02/02 GABAPENTIN OXCARBAZEPINE 02/03 02/04 02/05 KEPPRA® TOPIRAMATE 02/06 02/07 LAMOTRIGINE ZONISAMIDE Source: IMS (Epilepsy market share in value, Europe, MAT, Feb. 2007) Allergy franchise Continuing solid performance 17 The next generation biopharma leader May 29, 2007 Net sales € 704 million in 2006 800 +2% 600 € million 400 +12% 200 0% -17% +26% 0 U.S.A. Europe 2005 Japan 2006 Emerging markets Total Allergy franchise includes Zyrtec®, Zyrtec D®, Cirrus®, Xyzal® Zyrtec® U.S.A.: Market leader 18 The next generation biopharma leader May 29, 2007 60.0% 49.2% 50.0% Market share in value 40.0% 30.0% 20.0% 10.0% 0.0% Mar 2005 Jun 2005 Sep 2005 Dec 2005 Mar 2006 Jun 2006 Sep 2006 Dec 2006 Clarinex Allegra Claritine Zyrtec® Fexofenadine generics Loratadine generics Source: IMS (Antihistamine group of products , Value, US, Feb. 07) Xyzal® U.S. transition in allergy 19 The next generation biopharma leader May 29, 2007 Significant branded prescription market Xyzal® superiority demonstrated versus competition* Potentially only promoted oral premium prescription anti-histamine Positioned for leadership Co-promotion with sanofi-aventis U.S. launch expected during Fall 2007 * Day JH et al. Comparative clinical efficacy, onset and duration of action of levocetirizine and desloratadine for symptoms of seasonal allergic rhinitis in subjects evaluated in the environmental exposure unit (EEU). Int J Clin Pract 2004; 58: 109-18 Agenda 20 The next generation biopharma leader May 29, 2007 UCB today Acquisition of Schwarz Pharma Research & Development Outlook 2007 UCB + Schwarz Pharma Leaping forward 21 The next generation biopharma leader May 29, 2007 Leaps forward into the next generation biopharma company Strengthens leadership position in one of our strong franchises     Broadens late stage pipeline to accelerate sustainable topline growth into the next decade Commercial organisation increased power in U.S.A. and E.U. Additional earnings growth to fund R&D investments Significant anticipated synergies: € 300m p.a. within 3 years Builds on complementary culture of both organisations and UCB's successful transaction integration track record     Improved long term earnings prospects and cash-flow profile UCB + Schwarz Pharma Status of acquisition process 22 The next generation biopharma leader May 29, 2007 Tender offer completed on 28 December 2006 UCB owns today 87.6% of Schwarz Pharma’s outstanding shares Domination & profit and loss transfer agreement (DA) process ongoing • Cash compensation of € 104.60 per Schwarz Pharma share or guaranteed dividend of € 3.43 per share • Schwarz Pharma’s General Shareholders' Meeting (>94%) accepted all resolutions (>98%), including DA (May 8, 2007) UCB + Schwarz Pharma Integration update 23 The next generation biopharma leader May 29, 2007 Both companies being restructured to address inefficiencies and new specialist driven business model Arm’s length agreements to benefit Schwarz’s and UCB’s shareholders: • Co-promotion of Neupro® and Keppra® • Co-promotion of Primary Care products • Advisory services • Purchasing New organization planning from “Day One” post domination agreement Synergies on track Agenda 24 The next generation biopharma leader May 29, 2007 UCB today Acquisition of Schwarz Pharma Research & Development Outlook 2007 Rich and productive R&D pipeline 25 The next generation biopharma leader May 29, 2007 Phase I Phase II Phase III Filed / Launched sclerostin Osteoporosis Cimzia™ Psoriasis Cimzia™ Rheumatoid arthritis Cimzia™ Crohn's disease CDP323 UCB Multiple sclerosis brivaracetam Epilepsy Keppra® XR Epilepsy in U.S.A. Keppra® PGTC CMC544 Non-Hodgkin's lymphoma seletracetam Epilepsy Xyrem® Fibromyalgia Xyzal® Allergy in U.S.A. CDP791 Non-small-cell lung cancer epratuzumab Lupus lacosamide Schwarz Pharma • Epilepsy monotherapy • Migraine prophylaxis • Fibromyalgia • Osteoarthritis lacosamide • Diabetic neuropathic pain • Epilepsy Neupro® Patch • Early Parkinson’s • Advanced Parkinson’s rotigotine Nasal Spray Restless legs syndrome rotigotine Patch Restless legs syndrome fesoterodine Overactive bladder rotigotine Patch Fibromyalgia Inflammation CNS Other Oncology Epilepsy 26 The next generation biopharma leader May 29, 2007 Most common serious neurological disorder • Recurrent seizures resulting from excessive electrical activity in the brain Prevalence: 50 million people worldwide • 2.2 million in Europe • 1.6 million in U.S.A. 25 - 35% of patients are inadequately controlled Source: IMS – MAT 06 total AED market Keppra® XR Solid succession plan in epilepsy 27 The next generation biopharma leader May 29, 2007 Potentially valuable new alternative Expected improved efficacy and tolerability ratio Add-on therapy for adult patients with refractory epilepsy suffering from partial onset seizures Potential for monotherapy indication Potential for once daily convenience and compliance Phase III results expected in Q4 2007 Potentially 3 years of market exclusivity in the U.S.A. Brivaracetam Solid succession plan in epilepsy 28 The next generation biopharma leader May 29, 2007 Different pharmacology than Keppra® • 10 times more potent • More efficacious Broader mechanism of action Very strong efficacy in phase IIb evaluation Robust efficacy and good tolerability Population includes patients not controlled with Keppra® Phase III trials expected to start in Q2 2007 Orphan drug program in Unverricht Lundborg Disease ongoing Lacosamide Solid succession plan in epilepsy 29 The next generation biopharma leader May 29, 2007 Different mode of action than Keppra® and brivaracetam Convenient adjunctive therapy due to no drug-drug or food interaction Easy twice daily dosing, good safety and tolerability Oral dosing and IV formulation available Expected to become a strong and convenient AED that is simple to use with multiple formulations and good tolerability Positive phase III results in adjunctive therapy Adjunctive therapy E.U. filed in May 2007 U.S. filing expected in Q4 2007 Monotherapy Phase IIb expected to start in H2 2007 Crohn’s disease 30 The next generation biopharma leader May 29, 2007 Gastro-duodenal and other <1% Chronic inflammatory disease of the entire gastrointestinal tract Associated with episodes of relapse and remission Isolated colon 27% Isolated small-intestine 29% Prevalence: • Approximately 1 million people worldwide • Over 500,000 patients in Europe Isolated anorectal 3% Ileo-cecal 41% • Over 545,000 patients in the U.S.A. • Over 19,000 patients in Japan Market size: US$ 0.7 billion Adapted from: Truelove, Gut 1976; 17(3): 192–201 Source: Decision Resources Reports: Crohn’s Disease January 2007 Cimzia™ Crohn’s disease 31 The next generation biopharma leader May 29, 2007 Demonstrated efficacy with a stable once monthly dosing proven in extensive phase III programme Filed in the U.S.A. (February 2006) and E.U. (April 2006) Full response to Complete Review Letter Additional short-term clinical study • Provide additional clinical efficacy to confirm the induction of clinical response Additional phase III study results expected in H2 2008 Rheumatoid arthritis 32 The next generation biopharma leader May 29, 2007 Chronic inflammatory disease characterised by progressive joint destruction • Debilitating systemic condition Prevalence: • Approximately 1% of the population • Over 2.2 million in Europe • Over 2.1 million patients in U.S.A. • Over 0.6 million patients in Japan Market size: US$ 4.6 billion Source: Decision Resources Reports: RA May 2006 Cimzia™ Rheumatoid arthritis 33 The next generation biopharma leader May 29, 2007 Two positive large-scale phase III studies • RAPID 1 (027) and RAPID 2 (050) Primary and co-primary endpoints met with statistical significance • Significant improvement in signs and symptoms • Significant reduction in joint damage after 1 year (050/x-ray data) Results to be presented at key congresses • EULAR (June 2007) and ACR (November 2007) Regulatory submission expected by end 2007 Psoriasis 34 The next generation biopharma leader May 29, 2007 Chronic dermatological inflammatory disease • High morbidity Prevalence: • Estimated 2% of population • Over 4.5 million in Europe 4.1 million in the U.S.A. Market size: US$ 0.6 billion Source: Decision Resources Reports: Psoriasis September 2006 Cimzia™ Psoriasis 35 The next generation biopharma leader May 29, 2007 Demonstrated efficacy in moderate to severe chronic plaque psoriasis in phase II study (040) Retreatment study (044) ongoing Preparation for next steps ongoing Additional phase II results expected in Q3 2007 Parkinson’s disease 36 The next generation biopharma leader May 29, 2007 Progressive neurological disease • Characterized by loss of dopamine containing cells • Leading to impaired movement control Prevalence: 4 million patients world-wide Market size: US$ 2.9 billion Neupro® Parkinson's disease 37 The next generation biopharma leader May 29, 2007 First once a day non-ergolinic dopamine agonist First transdermal patch for treatment of Parkinson’s disease 24-hour coverage for signs and symptoms of Parkinson’s disease A new Parkinson's therapy is taking shape Early stage Parkinson Advanced Parkinson Launched in Europe Approved in U.S.A. Approved in Europe Planned sNDA filing 2H2007 Restless legs syndrome 38 The next generation biopharma leader May 29, 2007 Neurological disorder • Characterized by deficiency in the dopaminergic system • Resulting in motor restlessness, poor quality of sleep, excessive daytime sleepiness, traffic safety issues Prevalence: 10% of population Market size: US$ 350 million Rotigotine Restless legs syndrome 39 The next generation biopharma leader May 29, 2007 Transdermal system Outstanding efficacy in Restless Legs Syndrome, well tolerated and safe confirmed in two phase III trials Evidence of improved sleep and reduced daytime tiredness Excellent chance to become first line treatment for this large unmet medical need Potential to become first-line therapy Restless Legs Syndrome (RLS): increased awareness of the unrecognized disease Expected U.S. & E.U. regulatory filing by end 2007 Diabetic neuropathic pain 40 The next generation biopharma leader May 29, 2007 Permanent damage of nerves caused by metabolic disorder • Chronic pain, sensations of burning, electricity, extreme cold, numbness and tingling Prevalence: 11 million patients worldwide Market size: US$ 3.5 billion Lacosamide Diabetic neuropathic pain 41 The next generation biopharma leader May 29, 2007 Promising drug for a growing market with large unmet medical need Strong and sustained efficacy in reducing diabetic neuropathy Good tolerability and safety profile No drug-drug or food interactions or weight gain Different mode of action E.U. filing expected in Q3 2007 U.S. filing expected in Q4 2007 Agenda 42 The next generation biopharma leader May 29, 2007 UCB today Acquisition of Schwarz Pharma Research & Development Outlook 2007 Focus for 2007 43 The next generation biopharma leader May 29, 2007 Maximize Keppra® and prepare for expansion of epilepsy franchise Launch Cimzia™ in Crohn’s, Neupro® in Parkinson’s and Xyzal® in U.S.A. Realise synergies Reach major Research, Development and Regulatory milestones • Cimzia™ • Xyzal® • Keppra® XR • brivaracetam • Neupro® • lacosamide CD approval, Rheumatoid Arthritis filing Allergy, Approval in U.S.A. Epilepsy, complete phase III trials Epilepsy, start phase III trials Advanced Parkinson approval in U.S.A. Restless Legs Syndrome filing Filings in U.S.A. and Europe for Epilepsy and Diabetic Neuropathic Pain UCB Next generation biopharma leader 44 The next generation biopharma leader May 29, 2007 Significant long-term growth Breakthrough Unique science for unique medicines to meet unmet medical needs Intense growth Rich pipeline bears fruits Execution New product launches R&D investments Continuous cost improvement Change in product portfolio 2007-2009 2010 ... and beyond UCB Next generation biopharma leader 45 The next generation biopharma leader May 29, 2007 Rich pipeline especially in neurology and inflammation World-leading R&D capability with unique science Global commercial scale with a broader range of specialist products Leading neurology company Leverages UCB’s proven sales and marketing network Complementary entrepreneurial talent base Significant synergy generation Superior long term revenue and earnings growth The next generation biopharma leader May 29, 2007 46