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Is the End Near? Follow-on biotech products will appear first in Europe, where “biosimilar” growth hormone is already approved. Next year, Amgen and J&J could encounter competition in Europe for their big-selling Erythropoietin anemia treatments. When competition reduces prices in Europe, pressure will grow in the US to allow follow-on biologics, too. PATENTS Product Percent of Expiration Date(s) Recent Sales Company U.S. EUROPE Drug Brand Company / Ticker Price (bil) Revenues Condition Treated ’01-2007 2008 Interferon Beta-1b Betaseron Novartis / NVS $56.81 $0.20 0.6% Multiple Sclerosis ’01-2007 2008 Interferon Beta-1b Betaferon Schering AG / SHR 109.30 1.11 28.4 Multiple Sclerosis 2002 Alpha Interferon Intron A Schering Plough / SGP 19.34 0.29 3.0 Cancer 2002 Human Insulin Humulin Eli Lilly / LLY 50.76 1.00 6.9 Diabetes ’02-2012 ’03-2005 Interleukin - 2 Proleukin Novartis / NVS 56.81 0.12 0.4 Cancer, Hepatitis ’03-2008 Growth Hormone Humatrope Eli Lilly / LLY 50.76 0.41 2.8 Growth Deficiency ’04-2015 2004 Erythropoietin Epogen Amgen / AMGN 67.10 2.87 23.0 Anemia 2004 Erythropoietin Procrit, Eprex J & J / JNJ 60.14 3.32 6.7 Anemia 2005 Growth Hormone Protropin Genentech / DNA 75.93 0.38 5.7 Growth Deficiency 2005 Human Insulin Actrapid/ Novo Nordisk / NVO 63.65 2.59 44.4 Diabetes Insulatard ’05-2013 2006 G-CSF Neupogen Amgen / AMGN 67.10 1.22 9.8 White Blood Cell Insufficiency ’05-2015 ’03-2009 TPA Activase Genetech / DNA 75.93 0.27 3.4 Heart Attack, Stroke ’07-2017 2015 T Cell Deactivation Amevive Biogen Idec / BIIB 45.35 0.05 2.0 Psoriasis ’08-2013 2012 Interferon Beta-1a Avonex Biogen / BIIB 45.35 1.54 64.0 Multiple Sclerosis ’09-2012 2010 TNF Antagonist Enbrel Amgen / AMGN 67.10 2.60 20.9 Arthritis, Crohn’s ’09-2015 2000 Growth Hormone Nutropin Genentech / DNA 75.93 0.37 5.6 Growth Deficiency ’13-2019 Imiglucerase Cerezyme Genzyme / GENZ 58.17 0.93 34.0 Gaucher Disease 2015 ’04-2006 Human Fertility Hormone Gonal F Serono / SRA 16.52 0.55 21.2 Infertility Sources: FDA Orange Book; Sanford C. Bernstein; ICICI Securities; Westwind Partners; Company Reports

Is the End Near? - The Wall Street Journalonline.wsj.com/public/resources/documents/BA_060522-BIO.pdf · ’08-2013 2012 Interferon Beta-1a Avonex Biogen/BIIB 45.35 1.54 64.0 Multiple

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Is the End Near?Follow-on biotech products will appear first in Europe, where “biosimilar” growth hormone is already approved. Next year, Amgen and J&J could encounter competition in Europe for their big-selling Erythropoietin anemia treatments. When competition reduces prices in Europe, pressure will grow in the US to allow follow-on biologics, too.

PATENTS Product Percent of Expiration Date(s) Recent Sales Company U.S. EUROPE Drug Brand Company / Ticker Price (bil) Revenues Condition Treated

’01-2007 2008 Interferon Beta-1b Betaseron Novartis / NVS $56.81 $0.20 0.6% Multiple Sclerosis

’01-2007 2008 Interferon Beta-1b Betaferon Schering AG / SHR 109.30 1.11 28.4 Multiple Sclerosis

2002 Alpha Interferon Intron A Schering Plough / SGP 19.34 0.29 3.0 Cancer

2002 Human Insulin Humulin Eli Lilly / LLY 50.76 1.00 6.9 Diabetes

’02-2012 ’03-2005 Interleukin - 2 Proleukin Novartis / NVS 56.81 0.12 0.4 Cancer, Hepatitis

’03-2008 Growth Hormone Humatrope Eli Lilly / LLY 50.76 0.41 2.8 Growth Deficiency

’04-2015 2004 Erythropoietin Epogen Amgen / AMGN 67.10 2.87 23.0 Anemia

2004 Erythropoietin Procrit, Eprex J & J / JNJ 60.14 3.32 6.7 Anemia

2005 Growth Hormone Protropin Genentech / DNA 75.93 0.38 5.7 Growth Deficiency

2005 Human Insulin Actrapid/

Novo Nordisk / NVO 63.65 2.59 44.4 Diabetes Insulatard

’05-2013 2006 G-CSF Neupogen Amgen / AMGN 67.10 1.22 9.8 White Blood Cell Insufficiency

’05-2015 ’03-2009 TPA Activase Genetech / DNA 75.93 0.27 3.4 Heart Attack, Stroke

’07-2017 2015 T Cell Deactivation Amevive Biogen Idec / BIIB 45.35 0.05 2.0 Psoriasis

’08-2013 2012 Interferon Beta-1a Avonex Biogen / BIIB 45.35 1.54 64.0 Multiple Sclerosis

’09-2012 2010 TNF Antagonist Enbrel Amgen / AMGN 67.10 2.60 20.9 Arthritis, Crohn’s

’09-2015 2000 Growth Hormone Nutropin Genentech / DNA 75.93 0.37 5.6 Growth Deficiency

’13-2019 Imiglucerase Cerezyme Genzyme / GENZ 58.17 0.93 34.0 Gaucher Disease

2015 ’04-2006 Human Fertility Hormone Gonal F Serono / SRA 16.52 0.55 21.2 Infertility

Sources: FDA Orange Book; Sanford C. Bernstein; ICICI Securities; Westwind Partners; Company Reports