Mark Kessel Partner Symphony Capital LLC June 3, 2010 Business Development Key Ingredient for Success

- 1 - Importance of Clinically Meaningful Innovation By 2020, Pay-for-Performance Will be the Norm in Many Countries Source: PricewaterhouseCoopers Pharma 2020

- 2 - Shifting Regional Biopharmaceutical Sales The Global Pharmaceutical Market by Region, 2008 & 2020 Source: PricewaterhouseCoopers Pharma 2020

- 3 - Growth of Development Programs Worldwide Source: PhRMA Pharmaceutical Profile, 2009 Number of Compounds in Development by Region

- 4 - More Unpartnered Products to Choose From Number of Unpartnered Products By Phase2007 vs Source: Oliver Wyman analysis; Goldman Sachs

- 5 - Acquisitions for Growth Number of Announced Transactions by Year: 2005 – 1H:2009 Source: Recap by Deloitte

- 6 - Acquisitions for Growth (continued) Large Pharma M&A: 2007 – 2009YTD $ Billions Number of Acquisitions Source: Business Insights Ltd., The Evolving Pharma M&A Landscape (2009)

- 7 - In-Licensing for Growth Top Licensees: 2005 – Q3:2009 Source: Recap by Deloitte

- 8 - In-Licensing for Growth (continued) Source: Recap by Deloitte 1,419 Alliances from 2005 – Q3:2009

- 9 - Approaches to Address Key Challenges Accessing cutting edge science from academic institutions Accessing early programs through venture capital arms Accessing platforms and enabling technologies Licensing pre-clinical and clinical programs Accelerating pipeline development Acquiring revenues and pipeline P&L enhancement strategies Out license compounds for developing markets Acquire compounds for Europe and developing markets Combining development and commercial efforts Avoiding over-paying by using earn out acquisitions Partnering pre-partnered drugs with Large Pharma not an impediment Hostile takeovers

Becoming the Partner of Choice: An Outsiders View Combine the best of biotech with Large Pharmas attributes Clear mandate from the top to become the partner of choice Ability to move quickly Creative approach to deal making Avoid risk avoidance Candor in dealing with collaborators Create win/win deals True collaboration and not big gorilla in the room environment Consider creative models to enhance success rate

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