5th Annual InternationalBusiness Research Forum

Globalization of the Pharmaceutical IndustryImplications to Information Technology

Bruce FademBruce FademMarch 27, 2004March 27, 2004

Pharmaceutical IndustryLate 1980’s – Early 1990’s

Halo effect Significant contributions to humankind Excellent profitability Local market focus Multinational

Pharmaceutical IndustryForces and Trends

ForcesRising healthcare costs

More complex and expensive new products

Greater regulatory oversight

TrendsGlobalization of the business

Complexity of government regulations

Tougher partnerships and integrations

Customer focus

Improve cost effectiveness and productivity through consolidation and standardization, i.e., operate as an integrated global company.

Pharmaceutical IndustryNecessary Response

Information Technology is an integral part of our business …

IT systems play support role in planning and production

IT used to plan and manage all aspects of production and capital management

Enabling complex network of commercial and supply partners

Business units manage own IT Systems designed for specific

functions/areas within business; different systems across geographies

Limited need for integration

IT complexity and cost drives need for shared services

Business functions increasingly linked; applications begin to be standardized

Industry investing heavily in integrated systems

IT used primarily to capture andmanage data within silos

IT solutions largely tactical and operational

IT enabling more aspects of R&D process – optimizing and accelerating speed of clinical trials, predictive modeling and simulation, managing genomic data

IT supports contact centers IT used to plan campaigns at

market/channel level

Data analytics used for creating targeted campaigns; enable measurement of promotional impact and proactive response measurement

Getting closer to one-to-one marketing through internet and direct prescriber interactions

Early 90s Today

Enterprise

Research andDevelopment

Manufac-turing and supply chain

Commer-cialization

Evolution of IT in the pharmaceutical industry

*Decision Support Systems

Trends Business challenges

Globalization of the business

Worldwide marketing and distribution – coordinate development and commercialization to allow global product management

New sources of competition – continued growth of local competitors, particularly in off-patent drugs requiring increasing efficiency

Increasing standardization of process and coordination through development of cost-effective connectivity of workforce

Continued use of IT to improve manufacturing productivity/efficiency

Complexity of government regulation

Linking internal and external processes to ensure timely information flow with regulators

Tighter control over regulatory interactions – proactively tracking and reporting regulatory changes; actively monitoring GCP, GLP, GMP, and GPP

Social, economic and political pressure on pricing

Allow real-time exchange and dissemination of regulatory information

Electronic submission and regulatory reporting from centralized repositories

Global pricing processes and management systems

Tighter partnerships & integration

Tracking, evaluation, and coordination of multiple external relationships to gain/assess value

Seamless integration of business processes between enterprise functions and partners

Connectivity/systems for collaboration, process integration, and contractual monitoring of network of partners

Standardize applications and integration through middleware and data warehouses

Customerfocus

Continued growth of one-to-one marketing with targeted promotion and services

Consumer awareness and influence on prescriber decisions

Close loop promotion- interactive detailing DTC and internet capabilities Promotional response modeling Potential for “real-time” interventions

Potential IT needs

Industry trends will focus attention on IT solutions to increase collaboration and controls

Industry trends

Wyeth

Global, research based pharmaceutical company $16 billion annual revenue 53,000 employees 100+ locations worldwide Established in 1926 Formerly named American Home Products

Wyeth’s global network of sites shows extent of IT integration into the business

1999~85 connected sites

Wyeth’s global network of sites shows extent of IT integration into the business

19992004

~227 connected sites

Wyeth’s global network of sites shows extent of IT integration into the business

1999

2004

2009

~275 connected sites

American Home ProductsInformation Services Organization-Pre 1997

PharmaIT Head

International AffiliateCFO(s)

PharmaCFO

International AffiliateIT Head(s)

CorporateIS

CorporateCIO

FDAH DomesticIT Head

FDAH DomesticCFO

International IT Head(Home Office)

International PharmaCIO

Consumer Healthcare IT Head

Consumer HealthcareCFO

FDAH InternationalIT Head

FDAH InternationalCFO

Wyeth Information Services Organization-2004

Wyeth IS

Research IS

CorporateIS

PharmaIS

InternationalIS

ConsumerHealthcare IS

FDAH IS

IS Support

ISOperations

ISTechnology

ISFinance

Business Solutions Providers

Shared Services Providers

Responsible for providing allinformation technology supportto Wyeth Pharmaceutialsbusiness units.

Responsible for providing allinformation technology supportto Wyeth Research andDevelopment units.

Responsible for providing allinformation technologysupport to Wyethheadquarter units.

Responsible for the overallfinancial management ofWyeth Information Servicesincluding budgeting,forecasting and chargeouts.

Responsible for the deliveryof information technologyoperational services (datacenters, telecom, LAN,desktop).

Responsible for establishingenterprise technologyarchitecture and standards,and providing ongoingtechnology integration andsupport.

Responsible for developing andsupporting policies and processesto meet regulatory and compliancerequirements and to strengthencustomer service delivery. Providehep desk, client usability, training,security and acquisitionsleadership and services .

Responsible for implementationand ongoing support ofinformation technology solutionsfor pharma and consumerhealthcare international affiliatebusiness units.

Responsible for providing allinformation technologysupport to ConsumerHealthcare.

Responsible for providing allinformation technologysupport to FDAH.

Wyeth IS Vision

Common Business Processes Across the Company

Enterprise Application System in Predominant Use

IT Shared Services for Operations, Technology, and Processes Across the Globe

IT “Follow the Sun” Centers of Excellence for Business Applications, Technology, and Operations

Infrastructure Funding by Platform, Technology, and Application

An Intense Focus on Delivering Value to Our Clients

A Total Commitment to Cooperation, Communication, and Coordination

Keys to Effective Application of Information Technology