Research & development There’s never been anything quite like the new Pfizer. Why? Because of you -- the most important element of this new company. Companies like ours don’t get to be where they are without the best people. The people who built Warner-Lambert and the people who built Pfizer are the very best in our fields. United -- and with a redoubled commitment to our shared values -- we can only get even better. Despite all the excitement, mergers are trying times, as people adjust to changes in their professional and personal lives. How we respond to these changes will define our character as a company -- and as individuals. Remember, we are all new to the new Pfizer. We have a company to build, a future to create, and great things to achieve . . . together. Each of us is responsible for welcoming our colleagues with warmth and respect. Each of us is responsible for making the new Pfizer a fulfilling and productive place to work. The new Pfizer is a place of exceptional possibilities for improving the lives of people everywhere, and for creating better lives for ourselves, our families and the communities where we live and work. As we enter the 21st century, more than ever before, life is our life’s work. Welcome to the new Pfizer.

The Phases of Drug Development Pre-Clinical Phase I Clinical Tests Phase II Clinical Tests Phase III Clinical Tests Regulatory Review Regulatory Approval Phase IV Clinical Tests

Average Number of Clinical Trials per NDA

Average Number of Patients in Clinical Trials per NDA

R&D Investment Risks On average: $ 800 million to bring one product to market Only 1 in 5000 molecules developed make it to market as a prescription drug 3 of 10 that do make it to market recoup investment and make a profit.

Drop in Death Rates for Diseases Treated with Pharmaceuticals, 1965-1996

The Good that drugs do… Innovative medicines, by preventing as well as curing disease help make integrated care possible e.g Lipid lowering agents: Reduces cholesterol thereby preventing heart attacks and strokes 183 South Africans die every day from a heart attack or stroke. With Lipid lowering agents: 50% DECREASE in stroke 59% DECREASE in non fatal myocardial infarction

Strong Intellectual Property Improves Public Health Quality drugs reach the market Discourages counterfeit drugs which often pose a public health risk Facilitates Transfer of Advanced Technologies From Developed to Developing Countries Larger Attraction for Skilled Labour

Strong Intellectual Property Fosters Development of Industry Trend towards local R&D vs merely Reproducing medicine R&D and general investment increasing in Pro-IPR countries : E.G. Mexico, Korea and Canada

CORNERSTONES OF INNOVATION Adequate support for biomedical research Strong protection of intellectual property Rigorous, efficient, and transparent regulation of pharmaceuticals Market-based delivery of health care A supportive global business environment

Patent Protection Pharmaceutical patents confer a right to prevent others from producing and selling the specific patented medicine without the permission of the patent holder for a limited time.

life is our life’s work There’s never been anything quite like the new Pfizer. Why? Because of you -- the most important element of this new company. Companies like ours don’t get to be where they are without the best people. The people who built Warner-Lambert and the people who built Pfizer are the very best in our fields. United -- and with a redoubled commitment to our shared values -- we can only get even better. Despite all the excitement, mergers are trying times, as people adjust to changes in their professional and personal lives. How we respond to these changes will define our character as a company -- and as individuals. Remember, we are all new to the new Pfizer. We have a company to build, a future to create, and great things to achieve . . . together. Each of us is responsible for welcoming our colleagues with warmth and respect. Each of us is responsible for making the new Pfizer a fulfilling and productive place to work. The new Pfizer is a place of exceptional possibilities for improving the lives of people everywhere, and for creating better lives for ourselves, our families and the communities where we live and work. As we enter the 21st century, more than ever before, life is our life’s work. Welcome to the new Pfizer.