Global New Employee Orientation Workshop Welcome 1 On-going Networking and Social Events Job-specific Training On-the-job Experience and Training Intranet Orientation Site New Employee Orientation Workshop Receipt of Welcome Packet Job Offer and Acceptance Interviewing Recruiting April 4,2000 Global New Employee Orientation Company Confidential Copyright © 2000 Eli A Pharmaceutical Company and 2 Workshop Agenda Welcome Participant Introductions Document Completion Benefits Information A Pharmaceutical Company History Video April 4,2000 Global New Employee Orientation Company Confidential Copyright © 2000 Eli A Pharmaceutical Company and 3 Workshop Agenda (continued) Company Overview Red Book and Asset Protection Performance Management/Career Development Workshop Summary Wrap-up and Evaluation April 4,2000 Global New Employee Orientation Company Confidential Copyright © 2000 Eli A Pharmaceutical Company and 4 Workshop Objectives To let you know: • What is expected of you • How to add value to the company • How to communicate with your colleagues • How to integrate as team players April 4,2000 Global New Employee Orientation Company Confidential Copyright © 2000 Eli A Pharmaceutical Company and 5 Company Overview 6 A Pharmaceutical Company’s Global Presence Around the world, A Pharmaceutical Company: • Employs more than 31,000 people • Markets medicines in 179 countries • Has Research and Development facilities in 9 countries • Has Manufacturing facilities in 20 countries April 4,2000 Global New Employee Orientation Company Confidential Copyright © 2000 Eli A Pharmaceutical Company and 7 Our Three Core Values Respect for people Integrity Thirst for excellence April 4,2000 Global New Employee Orientation Company Confidential Copyright © 2000 Eli A Pharmaceutical Company and 8 Our Mission A Pharmaceutical Company is a research-based global company That Creates pharmaceutical-based health care solutions To Enable people to live longer, healthier, more active lives April 4,2000 Global New Employee Orientation Company Confidential Copyright © 2000 Eli A Pharmaceutical Company and 9 Our Four Corporate Objectives People Scientific Innovation Demand Realization Shareholder Value April 4,2000 Global New Employee Orientation Company Confidential Copyright © 2000 Eli A Pharmaceutical Company and 10 Our Organizational Structure Policy Committee Charter At the corporate level, approve and own: • Performance targets • Strategies • Policies Ensure compliance April 4,2000 Global New Employee Orientation Company Confidential Copyright © 2000 Eli A Pharmaceutical Company and 11 Our Organizational Structure Policy Committee Activities: Manage corporate strategy Allocate resources Manage corporate assets Review investments Review organizational policies April 4,2000 Global New Employee Orientation Company Confidential Copyright © 2000 Eli A Pharmaceutical Company and 12 Our Organizational Structure Operations Committee Charter Integrate strategies based on: • Product • Geography • Function Monitor corporate performance April 4,2000 Global New Employee Orientation Company Confidential Copyright © 2000 Eli A Pharmaceutical Company and 13 Our Organizational Structure Operations Committee Charter Identify and discuss corporate: • Strategic issues • Operational issues • Opportunities Provide for organizational learning April 4,2000 Global New Employee Orientation Company Confidential Copyright © 2000 Eli A Pharmaceutical Company and 14 Our Organizational Structure Operations Committee Activities: Review functional, product and geographic plans Align plans with corporate goals and targets Monitor corporate performance Debate strategic issues Review succession plans April 4,2000 Global New Employee Orientation Company Confidential Copyright © 2000 Eli A Pharmaceutical Company and 15 Global Pharmaceutical Market North America 33% Europe, Middle East and Africa 31% Asia and Pacific 5% Japan 23% Latin America 7% Australia 1% Sales: $134 Billion U.S. In 1999 April 4,2000 Global New Employee Orientation Company Confidential Copyright © 2000 Eli A Pharmaceutical Company and 16 External Factors Affecting the Industry Disease Focus Demographics Decision Maker/ Influencer Government/ Individual Spending April 4,2000 Global New Employee Orientation Company Confidential Copyright © 2000 Eli A Pharmaceutical Company and 17 Internal Factors Affecting the Industry Cost Competition Regulation Product Risk April 4,2000 Global New Employee Orientation Company Confidential Copyright © 2000 Eli A Pharmaceutical Company and 18 Pharmaceutical Research Spending Global (R&D) spending was $24 billion U.S. in 1999 R&D as a percentage of sales was 18 percent Much higher than other industries: • 6.4 percent in electronics • 3.9 percent in aerospace April 4,2000 Global New Employee Orientation Company Confidential Copyright © 2000 Eli A Pharmaceutical Company and 19 Product Risk 10,000 Compounds Average cost to develop one drug: $500 Million U.S. 1,000 Show Promise 100 Are Tested 1 April 4,2000 To Market Global New Employee Orientation Company Confidential Copyright © 2000 Eli A Pharmaceutical Company and 20 Product Life Cycle Patent Protection 20 years Drug Discovery and Development Launch Off Patent 15 years for R&D and Product Launch 5 Years to Recover R&D costs Generic Competition April 4,2000 Global New Employee Orientation Company Confidential Copyright © 2000 Eli A Pharmaceutical Company and No Longer Manufactured 21 Drug Development Process Hypothesis Generation Projects April 4,2000 Candidate Development Commercialization Programs Products Global New Employee Orientation Company Confidential Copyright © 2000 Eli A Pharmaceutical Company and 22 Hypothesis Generation Hypothesis Generation Activities Goal • Target identification and validation • Assay development Testable, valuable hypothesis • Lead generation Projects April 4,2000 Global New Employee Orientation Company Confidential Copyright © 2000 Eli A Pharmaceutical Company and 23 Candidate Development Candidate Development Activities Goal • Lead optimization • First human dose preparation • Phase IA clinical trials Proven or disproven hypothesis for given drug candidate • Phase IB / II clinical trials April 4,2000 Global New Employee Orientation Company Confidential Copyright © 2000 Eli A Pharmaceutical Company and 24 Commercialization Commercialization Activities Goal • Phase III clinical trials • Submission to regulatory agencies Successful commercial product • Global launch Products April 4,2000 • Global optimization Global New Employee Orientation Company Confidential Copyright © 2000 Eli A Pharmaceutical Company and 25 Quality, Speed, Value • Quality: Working on the best opportunities • Speed: Develop drugs in half the time • Value: Double the products for every R&D dollar April 4,2000 Global New Employee Orientation Company Confidential Copyright © 2000 Eli A Pharmaceutical Company and 26 Targeted Research Categories Cancer Cardiovascular Central Nervous System Endocrine Infectious Diseases April 4,2000 Global New Employee Orientation Company Confidential Copyright © 2000 Eli A Pharmaceutical Company and 27 Current Products More muscle • Increase the sales force • Visit more decision makers more frequently • Publish more articles • Increase direct marketing New indications Novel delivery devices April 4,2000 Global New Employee Orientation Company Confidential Copyright © 2000 Eli A Pharmaceutical Company and 28 Product Development New products • Depression • Cancer • Diabetes • Sepsis New combinations of existing products Product partnerships • Research • Launch April 4,2000 Global New Employee Orientation Company Confidential Copyright © 2000 Eli A Pharmaceutical Company and 29 A Pharmaceutical Company’s Manufacturing Processes Bulk Manufacturing Raw pharmaceutical materials are made into active drug compounds. April 4,2000 Global New Employee Orientation Company Confidential Copyright © 2000 Eli A Pharmaceutical Company and 30 A Pharmaceutical Company’s Manufacturing Processes Bulk Manufacturing Compounds are processed for storage and proper dosage. This could include: Formulation and Filling April 4,2000 • Mixing inert substances into compounds • Compressing dry compounds into tablets • Filling capsules with dry compounds • Filling vials with liquids • Freeze-drying liquids for longer storage Global New Employee Orientation Company Confidential Copyright © 2000 Eli A Pharmaceutical Company and 31 A Pharmaceutical Company’s Manufacturing Processes Bulk Manufacturing Products are prepared for distribution by: • Putting them in containers Formulation and Filling • Labeling the containers • Inserting patient instructions • Placing the containers in bulk packaging Finishing (packaging) April 4,2000 Global New Employee Orientation Company Confidential Copyright © 2000 Eli A Pharmaceutical Company and 32 Introduction to Our Intranet The Company Intranet The Orientation Site links to: • Corporate policies and procedures • Employee benefits and services • Functional business components • A Pharmaceutical Company’s product portfolio • Pharmaceutical industry overview • Career development resources April 4,2000 Global New Employee Orientation Company Confidential Copyright © 2000 Eli A Pharmaceutical Company and 33 Global New Employee Orientation Workshop Thank You 34