2. 1 Global New Employee Orientation Workshop Welcome

3. April 4,2000Global New Employee Orientation Company Confidential Copyright © 2000 Eli A Pharmaceutical Company and Company 2 Recruiting Interviewing Job Offer and Acceptance Receipt of Welcome Packet New Employee Orientation Workshop Intranet Orientation Site On-the-job Experience and Training Job-specific Training On-going Networking and Social Events

4. April 4,2000Global New Employee Orientation Company Confidential Copyright © 2000 Eli A Pharmaceutical Company and Company 3 Workshop Agenda Welcome Participant Introductions Document Completion Benefits Information A Pharmaceutical Company History Video

5. April 4,2000Global New Employee Orientation Company Confidential Copyright © 2000 Eli A Pharmaceutical Company and Company 4 Workshop Agenda (continued) Company Overview Red Book and Asset Protection Performance Management/Career Development Workshop Summary Wrap-up and Evaluation

6. April 4,2000Global New Employee Orientation Company Confidential Copyright © 2000 Eli A Pharmaceutical Company and Company 5 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

7. 6 Company Overview

8. April 4,2000Global New Employee Orientation Company Confidential Copyright © 2000 Eli A Pharmaceutical Company and Company 7 A Pharmaceutical Company’s Global Presence Employs more than 31,000 people Has Research and Development facilities in 9 countries Markets medicines in 179 countries Around the world, A Pharmaceutical Company: Has Manufacturing facilities in 20 countries

9. April 4,2000Global New Employee Orientation Company Confidential Copyright © 2000 Eli A Pharmaceutical Company and Company 8 Our Three Core Values Respect for people Integrity Thirst for excellence

10. April 4,2000Global New Employee Orientation Company Confidential Copyright © 2000 Eli A Pharmaceutical Company and Company 9 Our Mission Enable people to live longer, healthier, more active lives A Pharmaceutical Company is a research-based global company Creates pharmaceutical-based health care solutions That To

11. April 4,2000Global New Employee Orientation Company Confidential Copyright © 2000 Eli A Pharmaceutical Company and Company 10 People Scientific Innovation Demand Realization Shareholder Value Our Four Corporate Objectives

12. April 4,2000Global New Employee Orientation Company Confidential Copyright © 2000 Eli A Pharmaceutical Company and Company 11 Our Organizational Structure Policy Committee Charter At the corporate level, approve and own: Performance targets Strategies Policies Ensure compliance

13. April 4,2000Global New Employee Orientation Company Confidential Copyright © 2000 Eli A Pharmaceutical Company and Company 12 Our Organizational Structure Policy Committee Activities: Manage corporate strategy Allocate resources Manage corporate assets Review investments Review organizational policies

14. April 4,2000Global New Employee Orientation Company Confidential Copyright © 2000 Eli A Pharmaceutical Company and Company 13 Our Organizational Structure Operations Committee Charter Integrate strategies based on: Product Geography Function Monitor corporate performance

15. April 4,2000Global New Employee Orientation Company Confidential Copyright © 2000 Eli A Pharmaceutical Company and Company 14 Our Organizational Structure Operations Committee Charter Identify and discuss corporate: Strategic issues Operational issues Opportunities Provide for organizational learning

16. April 4,2000Global New Employee Orientation Company Confidential Copyright © 2000 Eli A Pharmaceutical Company and Company 15 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

17. April 4,2000Global New Employee Orientation Company Confidential Copyright © 2000 Eli A Pharmaceutical Company and Company 16 Global Pharmaceutical Market Europe, Middle East and Africa 31% North America 33% Japan 23% Australia 1% Latin America 7% Asia and Pacific 5% Sales: $134 Billion U.S. In 1999

18. April 4,2000Global New Employee Orientation Company Confidential Copyright © 2000 Eli A Pharmaceutical Company and Company 17 External Factors Affecting the Industry Demographics Government/ Individual Spending Disease Focus Decision Maker/ Influencer

19. April 4,2000Global New Employee Orientation Company Confidential Copyright © 2000 Eli A Pharmaceutical Company and Company 18 Internal Factors Affecting the Industry Cost Competition Regulation Product Risk

20. April 4,2000Global New Employee Orientation Company Confidential Copyright © 2000 Eli A Pharmaceutical Company and Company 19 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

21. April 4,2000Global New Employee Orientation Company Confidential Copyright © 2000 Eli A Pharmaceutical Company and Company 20 Product Risk 10,000 Compounds 1,000 Show Promise 100 Are Tested 1 Average cost to develop one drug: $500 Million U.S. To Market

22. April 4,2000Global New Employee Orientation Company Confidential Copyright © 2000 Eli A Pharmaceutical Company and Company 21 Product Life Cycle 15 years for R&D and Product Launch Drug Discovery and Development 5 Years to Recover R&D costs Launch Generic Competition Off Patent No Longer Manufactured Patent Protection 20 years

23. April 4,2000Global New Employee Orientation Company Confidential Copyright © 2000 Eli A Pharmaceutical Company and Company 22 Drug Development Process Commercialization Products Programs Candidate Development HypothesisGeneration Projects

24. April 4,2000Global New Employee Orientation Company Confidential Copyright © 2000 Eli A Pharmaceutical Company and Company 23 Hypothesis Generation Projects Target identification and validation Assay development Lead generation ActivitiesGoal Testable, valuable hypothesis

25. April 4,2000Global New Employee Orientation Company Confidential Copyright © 2000 Eli A Pharmaceutical Company and Company 24 Candidate Development Lead optimization First human dose preparation Phase IA clinical trials Phase IB / II clinical trials Goal Proven or disproven hypothesis for given drug candidate Activities Candidate Development

26. April 4,2000Global New Employee Orientation Company Confidential Copyright © 2000 Eli A Pharmaceutical Company and Company 25 Commercialization Products Phase III clinical trials Submission to regulatory agencies Global launch Global optimization Goal Successful commercial product Activities

27. April 4,2000Global New Employee Orientation Company Confidential Copyright © 2000 Eli A Pharmaceutical Company and Company 26 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

28. April 4,2000Global New Employee Orientation Company Confidential Copyright © 2000 Eli A Pharmaceutical Company and Company 27 Targeted Research Categories Cardiovascular Central Nervous System Endocrine Infectious Diseases Cancer

29. April 4,2000Global New Employee Orientation Company Confidential Copyright © 2000 Eli A Pharmaceutical Company and Company 28 Current Products More muscle Increase the sales force Visit more decision makers more frequently Publish more articles New indications Increase direct marketing Novel delivery devices

30. April 4,2000Global New Employee Orientation Company Confidential Copyright © 2000 Eli A Pharmaceutical Company and Company 29 Product Development New products Product partnerships Research Launch New combinations of existing products Depression Cancer Diabetes Sepsis

31. April 4,2000Global New Employee Orientation Company Confidential Copyright © 2000 Eli A Pharmaceutical Company and Company 30 Bulk Manufacturing A Pharmaceutical Company’s Manufacturing Processes Raw pharmaceutical materials are made into active drug compounds.

32. April 4,2000Global New Employee Orientation Company Confidential Copyright © 2000 Eli A Pharmaceutical Company and Company 31 Formulation and Filling Bulk Manufacturing A Pharmaceutical Company’s Manufacturing Processes Compounds are processed for storage and proper dosage. This could include: 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 Compounds are processed for storage and proper dosage. This could include: 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

33. April 4,2000Global New Employee Orientation Company Confidential Copyright © 2000 Eli A Pharmaceutical Company and Company 32 Formulation and Filling Bulk Manufacturing Finishing (packaging) A Pharmaceutical Company’s Manufacturing Processes Products are prepared for distribution by: Putting them in containers Labeling the containers Inserting patient instructions Placing the containers in bulk packaging Products are prepared for distribution by: Putting them in containers Labeling the containers Inserting patient instructions Placing the containers in bulk packaging

34. April 4,2000Global New Employee Orientation Company Confidential Copyright © 2000 Eli A Pharmaceutical Company and Company 33 Introduction to Our Intranet The Company Intranet The Orientation Site links to: Employee benefits and services Corporate policies and procedures Functional business components A Pharmaceutical Company’s product portfolio Pharmaceutical industry overview Career development resources

35. 34 Global New Employee Orientation Workshop Thank You