National Pharmaceutical Congress RAPID-FIRE SESSION #2

Michael T. Brogan, President, IMS Brogan

The Sobering Reality

Still a Few Bumps Along the Road to Recovery

Pharma Forecast Growth, Key Global Regions*
8%

6%

4%
EMEA

2% EU5 0% -2% NEA UK CANADA

-4%

-6%

2009

2010

2011

2012

2013

2014

Canada's 2010 growth (+1.4%) marked the lowest rate in over 30 years
* Canada forecast data as at March 2011; all other regions as at September 2010

Growth Dynamics Driven by Innovation and by Addressing Areas of Unmet Needs

Growth Drivers New drugs High value specialty drugs Demographic factors and demand for Rx drugs Increased prescribing by pharmacists/other healthcare professionals Continued increase in disease awareness Consumer attitudes Growth Constraints Loss of Exclusivity Cost containment across provinces (public and private) Price pressure on generics; Drug System Reforms Increase use of best price policies (ON, QC, BC, NL) Less promotional investment

Industry Fundamentals Remain Good: Stronger Performance for those Who Up their Game

Move faster and more effectively Fundamentally re-think your development and commercialization strategies Offer a powerful and pertinent value proposition

Touch-pad Question

What is the #1 action Big Pharma needs to get back to solid growth? a) Refocus R&D on breakthrough innovation b) Better communicate the value of innovative medicine to payers c) Allocate promotional spend differently d) Diversify into OTC, generics, biosimilars e) Change its public image

Rapid-fire Session: Our Panelists

Brian Jahns, Business Unit Director, Hematology at Hoffmann-La Roche It's Not an Option: Customer Centricity is the Future Andreas Seiger, Marketing Director, Diabetes Care - Novo Nordisk Canada Inc. Lifecycle Management & Forecasting Doug Grant, Head, Corporate Affairs, Bayer Healthcare The Challenge of Reimbursement Deborah Brown, Regional Vice President & General Manager, EMD Serono Canada Inc. Getting out from Behind the Glass Kevin Leshuk, General Manager, Celgene Inc. The Tantalus Paradigm