This document provides an overview of Pfizer's research and development strategies and opportunities for growth through strategic alliances. It discusses Pfizer's global R&D operations and pipeline, challenges in the pharmaceutical industry around shrinking market exclusivity and high drug development attrition rates. It also outlines Pfizer's approaches to alliances like pursuing opportunities aggressively, taking a standard approach, or prioritizing areas of social need. The document emphasizes Pfizer's leadership in biopharmaceutical strategic alliances and investments in external innovation.

1. Challenges and Opportunities for Growth and
Innovation in Pharmaceuticals and
Biotechnology
Colorado’s Bioscience Community: Building on the Foundation
August 28, 2007
David K. Rosen, D.V.M.
Head, Development and
Commercial Strategic Alliances
Pfizer Inc

2. Pfizer is an Innovative, Global Research-
Based Health Care Company
Products Category
Lipid-Lowering
Hypertension/Angina
Arthritis
Depression/Anxiety
Antibiotic
Erectile Dysfunction
Lyrica Fibromyalgia
Antifungal
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3. Therapeutic Area Strategy
How it Works in Pfizer
PURSUE AGGRESSIVELY – Increase investment to ensure success
 Risk: Multiple shots on goal to offset risk
 Speed: Invest for speed
STANDARD – Current Pfizer approach to drug development
ALTRUISTIC – Targeted investment to address social need
STAGED INVESTMENT
 Technical Doability: Develop the science
 Commercial Doability: More market research to understand the opportunity
MONITOR – Do not invest until technical or commercial opportunity clarifies
EXIT – No further investment in this area
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4. Pharmaceutical Industry
Challenges
4

5. Pfizer Conducts R&D Globally
Cambridge,
MA
Sandwich,
La Jolla, CA ENGLAND
St. Louis, New London Exiting:
MO & Groton,CT
•Kalamazoo, MI
•Ann Arbor, MI
•Nagoya , Japan 5

6. Shrinking Market Exclusivity
Innovative Drug / 2nd Generation
Year Introduced Drug/Year
Inderal - 1965 Lopressor - 1978
Tagamet - 1977 Zantac - 1983
Capoten - 1980 Vasotec - 1985
Seldane - 1985 Hismanal – 1989
AZT - 1987 Videx – 1991
Mevacor - 1987 Pravachol – 1991
Prozac - 1988 Zoloft – 1992
Diflucan - 1990 Sporonox – 1992
Recombinate - 1992 Kogenate – 1992
Celebrex - 1999 Vioxx– 1999
0 1 2 3 4 5 6 7 8 9 10
Years of Exclusivity for Innovative Drug
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7. High Attrition Rate in Drug Development
Thousands of
Compounds Screened
~100 Discovery Approaches
High Risk Process
Preclinical
Pharmacology ~250 12-15 years, ~$1 B/candidate
Preclinical Safety
~5 1 –2
Products
Clinical Pharmacology
& Safety
Discovery Exploratory Development Full Development
Phase I Phase II Phase III
0 5 10 15
Idea 11 - 15 Years Drug
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8. Expanding the Scope of R&D
Future Biologics Powerhouse
(pegvisomant for injection) human insulin powder
(interferon beta-1a) (dalteparin sodium injection)
PEG-hGH CTLA4 mAb MCSF mAb
ETC-588 TLR CPG 7909 ETC-216
T2-TrpRS IGF1R mAb ETC-642
CD40 mAb MAdCAM mAb
$1.5 Billion Pfizer
2006 Biologics Sales
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NY 7/31/2006

9. Non-Invasive Protein Delivery
 Exubera®: The first inhaled
insulin
 A breakthrough in
diabetes treatment
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10. Biomarkers, Diagnostics and Devices
 Pfizer is interested seeing these biomarkers,
diagnostics and devices developed and
commercialized but our role is enabling
 Our interest is in access to the technology for
R&D; results and data
 How will we use these technologies?
 Designing medicines
 Monitoring disease
 Identifying patients who will respond to a medicine
 Identifying patients who might respond adversely
to a medicine
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11. Data Management
 Our needs extend beyond what would
traditionally be seen or considered as science
 Applications like medical records are obvious
 What else do we need to do or want to do with
this data?
 Data acquisition
 Data mining
 Data analysis
 Data exchange and meta-analysis
– clinical trials
– diagnostics and genetic testing
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12. Precompetitive and Competitive Technologies
an Alzheimer’s Disease Example
 Precompetitive Technology:
 We all need better (more accurate at an earlier stage of
disease), faster, less expensive ways to diagnose AD
 Help us enroll patients in clinical trials with confirmed
AD
 Determine if drug was having impact on disease
progression
 Fund as a consortium?
 Competitive Technology
 An AD diagnostic customized for our compound which
would allow us to compare how our drug is impacting
the patient as compared with similar therapies
 Fund on our own
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13. Productivity Challenge
$40
$35
Total R&D Investment ($Billions)
$30
$25
$20
$15
$10
$5
$0
2005
2000
1985
1990
1995
1970
1975
1980
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Source: 2006 PhRMA Annual Survey

14. Total BioPharmaceutical R&D Spending 2005-2006
($Billions)
$55 Total spending increased by $3.4 B Biotech
$50 From 2005 to 2006 20%
$45
$40
$35
$30
$25
Pharma
$20 80%
$15
$10
$5
$0
2005
1995
2000
1970
1985
1990
1975
1980
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Source: 2006 PhRMA Annual Survey

15. Staying Competitive in a Changing Global
Environment: Pfizer’s evolving strategy
 Technical expertise is available around the globe
 India has chemistry innovation
 China has chemistry innovation and clinical trial
capacity
 South Korea has advanced data collection and
transmission, patient monitoring and clinical trial
capacity and implementation
 All of these countries have scientific and technical
experts educated in the west and trained at the top
20 pharmaceutical companies in the west
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16. Opportunities for Growth
and Innovation

17. We are one of the leading source of Biotech funding
Industry leading investment in R&D
$7.7
$7.5 $7.5
$7.1  Total Strategic Alliances
Spending: >$1.4B in the last 4
($Billions) years
$5.2
$4.8
$4.4
 “Pfizer…the largest source of
discovery stage biotech capital”
Source: In Vivo, September 2004
$2.3 $2.3
$1.8
$1.6
1996 1998 2000 2002 2004 2006
Source: Pfizer Annual Report 17

18. Extensive External Reach
 2006: Over 1800 business transactions/ >800 collaborations
 Global organization of 56 people at 6 sites in
US/EU/AustralAsia - predominantly scientific expertise
with enhancements:
 Finance, Business, Law, Medicine, Marketing/Sales, M&A
 Global colleague interaction allows synergistic expertise
 Strategic Alliances presently covers all areas of Research
and Development including deals/technologies that
interface with Manufacturing, Veterinary Medicine, PGP,
and Consumer Health Care
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19. Agreement Types
 Non-disclosure agreement
 Material transfer agreement
 License to patent/intellectual property
 Research collaboration
 Corporate collaboration (major deal)
 Consultantship
 Fee for service (outsourcing contracts)
 Acquisition of new chemical entities
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20. Alliance Types
 Research – Genes, Leads, Targets, Technology (Scripps)
 Candidate Producing (Kosan, ICAgen)
 In-Licensing – Early & Late Stage (Renovis, TransTech)
 Out-licensing – Assets, IP, Patents, Niche products (Darafenicin)
 Joint Venture – Marketing for Products (Insulin production)
 Co-promotion Deals – Risk & Reward (Rebif)
 M&A – Pipeline, Resources, Financial, Strategic (Rinat, Powdermed)
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21. Pfizer Global Research and Development
Major Alliance Partnerships: March 2006
Speeding/Enhancing
Altering the R&D Enhancing
Development
Productivity Paradigm Pipeline Value
Candidates
Product
Gene Function Screen Lead Candidate Development Speed Enhancement
Athersys Affymetrix Biotrove Amgen Neurion Amersham U. Michigan Alza
Chondrogene Deltagen Evotec Cerep Vicuron (acqu) U. Cambridge ProModel Atrix (QTL)
Metabolex InPharmatica Stem Cell Sci Entelos Wake Forest Curagen Genestruct Ventaira
Karolinska Xenogen U. Dundee Spotfire Monogram GeneLogic Codexis Bend
U. Pittsburgh Lexicon Gen Xenoport Medarex Rigel Lonza Perlegen Nektar
Wash. U Chondrogene Lilly Morphosys Nicox Meridica (acq) Lifespan Freie Univ.
Cerep ActivX Quorex Angiosyn Kings Pain Ctr Genizon U. Rochester
Perlegen/NIH Sangamo Isis Idun (acqu) NIA Oxford
Scripps Odyssey Th. TRansTech Coley Virtual Scopics Biosensors
Archimex Renovis Yale
Noxxon Symyx
GeneLogic Boehringer
Ingelheim
Chromos
iCardiac
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22. How will Pfizer Invest in New Technologies in
2007 and Beyond?
Strategic themes for SA investments
Productivity
 CAN producing alliances
 TA Enablers- focused alliances
 Emerging science/technologies investments
Leveraging Scale
 Cross-line technology investments
 Technologies enhancing Speed/Efficiency/Process
Flexible Budget
Emerging Sciences
Periodic review of where SPEED/Efficiency/Process
TAPT Enablers
we are investing
CAN-producing alliances
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23. Investing In The Future
 Gene Therapy
 Therapeutic Vaccines
 Biomarkers, Diagnostics and Personalized
Medicine
 Data Management
 Pfizer’s Incubator
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NY 7/31/2006

24. Pfizer Strategic Alliances
Thank you
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