獸藥企業(yè)財務(wù)分析

Alpharma:NewPlatform

forGrowthMarch21,2006

FourSeasonsHotel

57East57thStreet

NewYork,NY10022WelcomeKathyMakrakis

VicePresident

InvestorRelationsForwardLookingStatementStatementsmadeinthispresentationincludeforward-lookingstatementswithinthemeaningofthePrivateSecuritiesLitigationReformActof1995.Thesestatements,includingthoserelatingtofuturefinancialexpectations,involvecertainrisksanduncertaintiesthatcouldcauseactualresultstodiffermateriallyfromthoseintheforwardlookingstatements.InformationonothersignificantpotentialrisksanduncertaintiesnotdiscussedhereinmaybefoundintheCompany’sfilingswiththeSecuritiesandExchangeCommissionincludingitsForm10KfortheyearendedDecember31,2005.WebcastInformationandPresentationAssumptionsThispresentationisavailableinalistenonlymodeviatheinternetat,,oruntilMarch24,2006.ThesematerialsaremeantforuseonlyinconnectionwiththeoralpresentationbeingmadebythecompanyatitsanalystmeetingonMarch21,2006asmanyassumptions,risksandotherfactsmaterialtotheunderstandingoftheseslideswillbepresentedattheconference.SincethesematerialswerepreparedspecificallyfortheMarch21,2006conference,thecompanydoesnotundertaketoupdatethismaterialfordevelopments,risksorcircumstancesafterthatdate.Thepotentialrevenueopportunityrelatedtogrowthinitiativesinthispresentationarebasedonassumptionswhichthecompanybelievestobereasonable,butbecausetheycoverseveralyearsand,inmanycasesrepresenttheestimatedtargetsfornewstrategies,ortheintroductionofnewproducts,theyaresubjecttoinherentrisks,includingrisksdisclosedinthecompany’smostrecent10Kfiling,thatcouldcauseactualresultstovarymaterially.AgendaEachBusinessSegmentSessionWillIncludeTimeforQ&ACompanyOverviewIngridWiik

ViceChairman

PresidentandCEOHighMarginBusinesseswithGrowthOpportunitiesSpecialtyPharmaceuticalBusinessesBrandedKadian?:extendedreleasemorphineproductGrowingKadian?prescriptionsandmarketshareActivePharmaceuticalIngredientsFermentationandpurificationexpertiseAnimalHealthAworldwideleaderinthetreatment

andpreventionofdiseasesinfoodproducinganimalsAH

58%API

24%Branded

18%AH

46%Branded

17%API

37%BrandedBuildpainfranchise–investinproductstoleveragesalesforceDevelopnextgenerationabusedeterrentproductsandexpanddrugdeliverytechnologyAPILaunchadditionalhighpurityfermentation-basedactiveingredientsandexpandintospecialty-injectablesThroughAsianalliances,developandproducenewproductsandexpandexistingcapacityanddriveworldclasscostAHLeveragemarketreputationtodelivernewMFA’svialicensingandacquisitionofproductsOfferexistingmoleculeswithdifferentdeliverysystemsandwithnewindicationsNewFocus+InvestmentstoDriveGrowthGrowthStrategyGrowthPotential2001–2005growthofourcurrentSpecialtyPharmabusinessesRevenue:CAGR8%Operatingincome:CAGR29%WenowhavethefinancialresourcestoaccelerateourgrowthopportunitiesTargetedOrganicGrowthOpportunitiesRepresentRevenuesof$700M+FinancialOverviewMatthewFarrell

ExecutiveVicePresident

andCFOALOFinancialHistory$inmillions*ExcludingassetandgoodwillimpairmentsCAGR8%EstablishedGrowthCAGR29%Estimated$400MillionCashAvailableforInvestmentCashAvailableforInvestment$inmillions2006Outlook

FullYear2006EPS$1.25-$1.35BrandContinuedKADIAN?prescriptiongrowthPhaseIIClinicalTrialsforabuse-deterrentproduct-$15-$20millionincrementalR&DIncreasedKADIAN?SG&AinfrastructuretosupporthighgrowthbusinessAPILaunchfluticasoneinQ32006Launching1-2morenewmoleculesbyQ42006AnimalHealth5newproductlaunchesin2006Corporate/Unallocated2006outlookincludes$12million($0.14EPS)ofpredominantlyone-time2006expenses$3million($0.04EPS)ofstockoptionexpensealsoincludedin2006outlookOutlookadjustedforone-timeexpenseEPS:$1.39-$1.49;EBITDA$154million-$162millionAnimalHealthCarolWrenn

President

AnimalHealthDivisionWhatWe’llTalkAboutBusinessandmarketoverviewCompetitivelandscapeGrowthinitiativesExpandingshareNewproductpipelineWrapupAnimalHealthbusiness

hasstrongmargins,solidcustomerrelationships,brandrecognition,butuntil2005hadlowhistoricalrevenuegrowth.

Webelieveweareonanewtrajectory.StableNicheBusinesswithStrongMarketPositionAnimalHealthAHDspecializesinproductsforthetreatmentandpreventionofdiseasesinfoodproducinganimals,withastrongportfolioaddressingintestinalandrespiratoryissuesMarketleaderinmedicatedfeedadditives(MFA’s)andWaterSolubles:productsaddedtoanimalfeedordrinktopromotegoodhealthProductssolddirectlytomajorpoultryandlivestockproducersorthroughdistributorsMajorproductsincludebacitracin,chlortetracyline,lasolocidSoldunderbrandnamesBMD?,Albac?,Aureomycin?,Avatec?,Bovatec?Biologicals22%MFA's12%Pharmaceuticals66%AnimalHealthMarketCurrentBusinessMFA–OpportunityinPharmaceuticals$325MAH2005RevenuesWaterSolubles6%MFA’s

94%*ExcludesVitamins$13.7B*GlobalMarketbyMajorProduct

TotalMkt .MFAMkt

Total

ALOShare

Total

ALOSHARE

Poultry 1.6 10% .59 27%Cattle 3.7 2% .32 20%Swine 2.3 3% .54 14%Horses 0.5 --- --- ---Sheep 0.6 --- .07 ---Dogs&Cats 4.6 --- .07 ---Others 0.4

--- --- ---Total $13.7 2.4% $1.6 19%

TotalMkt .MFAMkt

Mkt

ALOShare

Total

ALOShareN.America

4.7 4% .61 30%Asia 2.7 1% .42 5%L.America 1.5 2% .17 19%EMEA 4.8

1%

.40

12%Total $13.7 2.4% 1.6 19%AnimalHealthMarketALOhasLeadingPositioninMFA’s….OpportunitytoExpandby

SpeciesandRegionSalesBySpecies($B)SalesbyRegion($B)*Source2005WoodMckensieAnimalHealthPerformance2005RevenueGrowthDrivenPrimarilybyShareGains

OIReflectsDramaticMarginImprovement2.5%12.8%46%89%*ExcludesdivestedoperationsRevenues($M)*OperatingIncome($M)*COCCIDIOSIS(Eimeria)AvatecBioCoxBovatecDeccoxCycostatCygroNicarbZoamix3-NitroPoultrySulfaSulQNoxENTERITIS(Clostridia)AlbacAlcareAureomycinBacivet-SBMDBMDSolubleLincomycinSolILEITIS(Lawsonia)AureomycinDYSENTERY(Serpulina)AlbacAlcareBMDBMDSolubleLincomycinSolGoodFranchiseinEntericDiseases-55%ofBusinessCOLIBACILLOSIS(E.coli)NeoSolTetSolBacterialDiseasesProtozoalDiseaseIntestinal(Enteric)ProductOfferingPASTEURELLOSIS,BRD(Pasteurella)AureomycinLincoSolubleCTCHClOxytetSolublePoultrySulfaTetSolMYCOPLASMAPNEUMONIAAureomycinOxytetSolubleTetSolAGoodBaseinRespiratoryTreatments-30%ofBusinessRespiratoryProductOfferingsMycoplasmapneumoniaBacterialpneumoniaTodayTechnologyplatform:MFAandWaterSolublesStrongentericandrespiratoryportfolioforfoodproducinganimals2005resultsdemonstrateabilitytogrowGreatbrandrecognition+customerrelationships...SOHOWDOWESUSTAINTHENEWTRAJECTORY?GrowingtheBusinessExpandingmarketshareinourcurrentbusinesswithexistingMFA’sandwatersolublesIntroducenewproductlineextensionsandnewindicationsGeographicexpansionNewproductsTomeetcurrentcustomerneedsincurrentmarketToenternew/expandedmarketsegmentsExpandingShareinCurrentBusinessActivitiesUnderwayTargeting$50M+ofRevenueOpportunityNewProductsNewproductstomeetcurrentcustomerneedsIntestinal(Enteric)RespiratoryExpandintonewmarketsegmentsCompanionanimalsDairycattleRevenueOpportunityof$70M+#ofPlannedAHNewProductLaunchesCommercializingMoreProductsProductLaunchCalendarOnTrackwithNewProductImplementationsPotentialNewProductRevenuesLaunchingProductsOvertheNextThreeYearswithMaturityValueof$70M+$inmillionsSummaryContinuetoincreasevalueinexistingproducts$50M+opportunityrelatedtoadditionalproductindicationsandgeographicexpansionNewproducts/newsegments$70M+ofrevenueopportunitySignificantGrowthOpportunitiesAnimalHealthbusiness

hasstrongmargins,solidcustomerrelationships,brandrecognition,butuntil2005hadlowhistoricalrevenuegrowth.

Webelieveweareonanewtrajectory.ActivePharmaceuticalIngredientsCarl-?keCarlsson

President

ActivePharmaceuticalIngredientsWhatWe’llTalkAboutBusinessandMarketoverviewGrowthinitiativesExpandandimprovecurrentbusinessIntroducenewproductsForwardintegrateWrap-upProducesactiveingredientsforpharmacompaniesmarketingthefinishedproductsProfitableproductnicheswithstrongoperatingmarginsALOproficientinlengthy,complexFDAapprovalprocessAdvancedfermentationandpurificationcapabilitieswithsynthesiscapabilitiesinR&DActivePharmaceuticalIngredientsGloballyRecognizedSupplierofKeyAPI’s

PredominantlywithInjectableandTopicalApplicationsRemainingAPIs

25%Baci,Poly,

Vanco,

70%DosageForm

9%Contract

3%APIOverviewFermentationandPurificationExpertiseBiologicalsExtractsBiopharmaceuticals

19%Fermentation

6%SemiSynthetics

5%Synthetics

70%Other

66%Antibiotics

34%APIPerformance$inmillionsBacitracinPriceIncreaseImpactPeakedin2004VancomycinVolumeGrowth

andTobramycinLaunchMitigated2005PriceReductionRevenueOperatingIncomeStrategyExpandandimproveourcurrentbusinessAtaminimum,doublethenumberofAPIproductsfrom10to20infiveyearsIncreasethevalueofourproductofferingthroughforwardintegrationActivelySearchingforValueAddingOpportunitiesBecomeTheLeadingSupplierofAPIsandEnd-to-EndSolutionsfortheInjectableMarketExpandOurSuccessfulCurrentBusinessBemarketleaderinallourproductsDeliverbestinclasscustomerservicethroughcontinuousinnovationCustomerspecificproductqualitydelivered“ontime,everytime”ControlcoststhroughfocusedprocessimprovementsDoubleTheNumberofAPIProductsFrom10to20InFiveYearsFocusonpipelinemanagementandexploitincreasedR&DspendExpandinhouseAPItechnologyplatformtoincludesemi-syntheticsLeverageourinternationalR&DandsupplychainpartnershipsIncreaseTheValueOfOurProductOfferingThroughForwardIntegrationDevelopcapabilitytoofferinjectabledosageformulationsOfferallkeyAPIsasfinishedproductsolutionsVancomycinAPIMarketisAttractiveinSizeandisExpectedtoContinuetoGrowVancomycinisstillgoldstandardtreatmentforseveregrampositiveinfectionsMarkethasbeengrowingat3-5%perannum,whichisexpectedtocontinuePrevalenceisincreasing,stillunder-treatmentinmanymarketsNewproductsinthissegmenthavebeenintroducedatapremiumprice(10-20xvanco)ConsequentlytakenasmallvolumeshareSofarexpandedthemarketratherthancannibalizedVancomycinvolumesSomeestablishedAPIsuppliersexitingthemarketScaledrivenorportfoliodecisionsCompetitiveLandscapeChanginginVancomycin–APIOpportunityof$20M+ExpandandImproveCurrentBusinessExpandAndImproveCurrentBusinessFocusedProcessImprovementsisaKeySuccessFactorandanALOFocusAreaSingleMoleculeExampleofProcessImprovementImpactonTotalYieldExpandandImproveCurrentBusinessandIntroduceNewProductsBuildingAsianpartnershipsTechnologytransferandbusinessdevelopmentunitestablishedinShanghaiThreelongtermagreementsputinplacein2005/Q12006Tobramycinnon-sterileinChinaMupirocininTaiwanFluticasoneinChinaMoreareinprogressandagreementsshouldbeconcludedin2006RangeofnewAPIproducts(immunomodulators)RangeofnewAPIproducts(Oncology)RangeofnewAPIproducts(antivirals)ExpansionofmanufacturingcapacityBuildingAsianR&DandSupplyChainPartnershipsUnderALOControlCommercialModelsareTailor-MadeandareConstructedasWin-WinPartnershipsDryPowderfillPre-filledsyringesLyophilizedvialsFinishedprod.formulationSynthesis/SemisynthesisBiologicalsFermentationFinishedDosageFormsTechnologyPlatformOwndevelopmentTherapeuticAreasOncologyAntiinfectivesPainImmunomodulators&otherLicensingAPIsselectedfromspecifictherapeuticareas,supportingend-to-enddevelopmentstrategyOwndevelopmentbuildingonAPItechnologyplatformandtargetingAPIswithinjectableapplicationCurrentFutureIntroduceNewProducts–DevelopmentandTechnologyStrategySourcing/licensingPossibleIntroduceNewAPIProductsInitiativesUnderwayTargetAPIRevenueOpportunityof$50M+Morethan10AdditionalProductsCurrentlyUnderEvaluation/NegotiationIntegratingForward–SecuringGrowthandProtectingMarginsLackofmanufacturingcapacityforfreezedriedinjectablevialsALOhasexpertisefromAPIfreezedryinganddrypowderfilltechnologiesALOhasregulatoryexpertiseALOhasregistrationsforvancomycinvials(EUandAsia)distributedthroughAcatavisALOissellingCMSdrypowderfillvialsasprivatelabelForwardIntegrationintoFreezeDriedInjectableVialsRepresentRevenue

OpportunityforCurrentandPipelineAPIsinExcessof$30+MillionTotalvialmarketforALOAPIproducts(currentandpipeline)inexcessof150MvialsIntegratingForward-LaunchingFinishedDosageFormProductsas“PrivateLabel”RepresentsRevenueOpportunity$30M+SeveralAdditionalProductsCurrentlyUnderEvaluationSummary–SignificantGrowthOpportunitiesContinuetogrowopportunitiesinexistingAPIproductsCapitalizeonvancomycinmarketchanges-$20M+revenueopportunityDoublenumberofAPIproductsoffered$50M+revenueopportunityIntegratingForwardFreezedriedinjectablevials$30M+revenueopportunityLaunchingadditionalfinisheddosageformproductsasprivatelabel$30M+revenueopportunityBrandedPharmaceuticalsRonaldWarner,PhD

PresidentBrandedProducts

JosephStauffer,DO

VicePresidentClinicalResearchandMedicalAffairsWhatWe’llTalkAboutBusinessandmarketoverviewKADIAN?productandtechnologyGrowthinitiativesExpandcurrentbusinessLineextensions,newindications,newgeographyAddcomplementaryproductsPainandrelatedproductsDevelopabusedeterrentproductsWrapupGrowingMarketPresenceBusinessOverviewKADIAN?-Sustainedrelease,longactingmorphineproduct–indicatedformoderatetoseverechronicpain194SalesRepresentativesFocus–highprescribingdecile6–10physiciansMarketingmessage–flexibilityandindividualizedpaintherapyInternalR&D,competenciesinmicro-particulatecoatedcontrolled–releasetechnologiesGrowthinitiatives–productin-licensingandabuse–deterrent

painproducts$3.7BillionMarket–MajorALOOpportunityMarketOverviewPainrepresentsasignificantmarketopportunitywithunmetneedsMarketwillcontinuetogrowinvolumeaspopulationagesTwocompanieshavehistoricallydominatedthemarketsegment(Purdue,Janssen)Existingblockbusterproductshavegonegeneric(OxycontinandDuragesic)Competitionactivewithahighshareofvoice(Ligand/Organon,Janssen,Purdue)Abuse/diversionhighontheagendaofdocsandDEARiskmanagementprogramsexpectedtoexpandKADIAN?FinancialPerformanceSolid2005PerformanceDrivenbyShareGrowthandPrice$inmillions30%TRxGrowth(2004to2005)KADIAN?Prescription(TRx)Performance-2005JanuaryDecemberContinuedGrowthin2006KADIAN?Prescription(TRx)Performance–2005-200620052006JanuaryDecemberKADIAN?MarketShare–20051PPTMarketShareExpansion(TRX)JanuaryDecemberCompetitiveLandscape–ControlledReleaseProductswithModeratetoSevereChronicPainIndicationsAnnualgrowthof2-3%15millionprescriptionsannually$3.7billionmarketin2004MarketShareByProductChangingLandscape–DynamicMarketPlace*Source:NDCDataAvailableinfivedosingstrengths:20mg30mg50mg60mg100mgTheMostFlexibleDosingandTitrationOptionsofAllProductsinCategoryKADIAN?Onceortwice-a-daydosingNo“bolus”doseThreeroutesofadministrationNoceilingdoseNosignificantfoodinteractionComparisonofLong-actingOpioidsPatentNumberExpirationType“128”April13,2010Composition“474”March21,2010Composition“766”July19,2011MethodKADIAN?PatentsIntellectualPropertyNoParagraphIVFilingstoDateKADIAN?ExpandingMarketShareExpandKADIAN?IndicationsGrowingtheBusiness–How?KADIAN?LineExtensionsstrengthspackagingdosageformsTerritoryExpansiongeographic“new”marketsOtherPainProductsbreak-thrupainnewdosageformsacutepainlessseverepain0OtherPainRelatedProductshormonereplacement

antiemeticsantidepressantsetc.AbuseDeterrentProductsIR/ERdifferentopioids

GrowingtheBusiness

KADIAN?LineExtensions-InternalDevelopmentAdditionalindicationsNewstrengthsDifferentdosageformsAdditionalgeographiesNewmarketsRevenueOpportunity$30M+AnnuallyGrowingtheBusiness

AddComplementaryProducts-BusinessDevelopmentForPainBreak-thrupainAcutepainLessseverepainForPainRelatedIndicationsAntiemeticsHormonereplacementAntidepressantsSleep-aidsMusclerelaxantsSeveralInvestmentOpportunitiesBeingTargetedGrowingtheBusiness

Abuse-DeterrentProductsImmediatereleaseproductsExtendedreleaseproductsMultipleopioidsRevenueOpportunity$500M+Annually

OpioidAbuse-DeterrentTechnologies

Pharmacologic

CombinationMechanisms

Physical

AversiveComponent

DeterrentPackaging

Pharmacologic -SequesteredAntagonist -Bio-availableAntagonist

CombinationMechanisms

(Alpharma’sFocus)

Physical -Difficulttocrush -Difficulttoextract

AversiveComponent-Capsaicin–burningsensation-Ipecac–emetic-Bitrex?

–bittertaste

DeterrentPackaging -RFID–Protection

-Tamper-proofbottles

Increasingabusedeterrence

OpioidAbuse-DeterrentTechnologiesHierarchyKADIANSustained-release

pH-dependent

polymer-coatedshellMorphinesulfate

binderlayerSugarSphereNTSustained-release

pH-dependent

polymer-coatedshellOpioid

binderlayerSequesteredCoreKadianVersusAbuse-deterrentLong-actingOpioid(NT)JosephW.Stauffer,DO

VicePresident,ClinicalResearchandMedicalAffairs

AlpharmaBrandedProductsDivision

AssistantProfessor

AnesthesiologyandCritical

CareMedicine

JohnsHopkinsUniversityHospitalAbuse-DeterrentOpioids

WhatWe’llTalkAboutIsprescriptionopioidabuseanissue?Whatisthecostofopioidabuse?InternetOpioidAbuseSurveillanceStudyDophysicianscareaboutabusedeterrence?OurabusedeterrentdevelopmentprogramPain&Addiction:

FDA,DEA,LawEnforcement,Patients,ProvidersTotalPainAddiction2-5%AberrantBehavior40%Abuse20%WebsterLR,WebsterRM.Predictingaberrantbehaviorsinopioid-treatedpatients:Preliminaryvalidationoftheopioidrisktool.PainMed.2005.6(6):432-42.ChronicPainPopulationisatRiskforAbuse,Diversion,

andAddictionHealthcare30.1%Workplace49.7%CriminalJustice20.2%TotalCost=$9.2BillionSource:BirnbaumH,etal.“CostofPrescriptionOpioidAnalgesicAbuseintheUnitedStatesin2001:ASocietalPerspective,”presentedattheAmericanCollegeofEpidemiologyAnnualMeeting,September2004.TheCostofPrescriptionOpioidAbuseintheUnitedStatesin2001PrescriptionOpioidAbuseisaSignificantPublicHealthProblemSource:WhiteA,etal.“DirectCostsofOpioidAbuseAmonganInsuredPopulationintheU.S.,”presentedattheAmericanSocietyofHealth-SystemPharmacistsMidyearClinicalMeetingandExhibits,Dec5-9,2004.OpioidAbusersNon-AbusersAverageAnnualDirectCosts*ofOpioidAbusers

andNon-abusers:AdministrativeClaimsData$0$2,000$4,000$6,000$8,000$10,000$12,000$14,000$16,000$18,000OpioidAbusersNon-abusersOtherCosts**OutpatientCostsHospitalInpatientCostsDrugCosts5%34%48%13%11%51%17%21%*Costsarein2003Dollars.Thedifferencebetweenallmeanannualcostsofopioidabusersnon-abusersisstatisticallysignificantlydifferentatthe1%level(p<.01)exceptfor"OtherCosts"forwhichthe"OtherPlaceofService"componentissignificantlydifferentatthe5%level(p<.05).**OtherCosts"include:"OtherPlaceofService"and"EmergencyRoom"costs.TotalDirectCost=$1,830TotalDirectCost=$15,88420mg30mg50mg60mg100mgHowDoesKADIAN?CompareintheWorldofPrescriptionOpioidAbuse?QuantitativeInternetSurveillance:ContentAnalysisAndMonitoringOfInternetPrescriptionOpioidAbuse-RelatedPostingsStephenF.Butlera*,SynneWingVenutia,ChristineBenoita,RichardL.Beaulaurierb,BrianHoulea,

NathanielKatzac

aInflexxion,Inc.,Newton,MA02464USA,bFloridaInternationalUniversity,Miami,FL33199USA,cTuftsUniversitySchoolofMedicineAbstract2005ThisstudydescribesthedevelopmentofasystematicapproachtoanalysisandmonitoringofInternetchatterasameansofmonitoringpotentiallyabusableopioidanalgesics.Messageboardsdedicatedtodrugabusewereselectedusingspecificinclusioncriteria.

AllrelevantInternetpostswerecaptured(total=48,293).

Acodingsystemwascreatedtocomparecontentofpostsrelatedtothreeopioidanalgesics:Kadian,Vicodin,andOxyContin.

Thenumbersofpostscontainingmentionsofthetargetdrugsweresignificantlydifferent(OxyContin(1,813)>Vicodin(940)>Kadian(27),p<.001).

Analysesrevealedthatthesedifferenceswerenotsimplyareflectionoftheavailabilityofeachproduct(i.e.,numberofprescriptionswritten).

Inaformalreliabilitytest,thecontentcodingsystemachievedgoodinter-raterreliabilitycoefficients(averagekappaacrossallcategories=.76,range=.52to1.0).

Contentanalysisofasampleof234randomlyselectedpostsindicatedthattheproportionofInternetpostsendorsingrecreationaluseofKadianwassignificantlylessthanOxyContin(45.5%vs.68.4%,p=.036),andnumericallylessthanVicodin(45.5%vs.57.6%,p=.291).

Theseresultssuggestthatasystematicapproachtopost-marketingsurveillanceofInternetchatterrelatedtopharmaceuticalproductsisfeasibleandyieldsreliableinformationaboutthequantityofdiscussionofspecificproductsaswellasqualitativeinformationregardingthenatureofthediscussions.

ThisinvestigationstandsasafirstattempttoestablishsystematicmethodsforconductingInternetsurveillance.

Manuscriptsubmittedto,Journal:PainAbstractsacceptedatConferences:AmericanMedicalEducationandResearchinSubstanceAbuse(Oct2005);AmericanPainSociety(May2006)NormalizedbyprescriptionvolumeQuantitativeInternetSurveillance:ContentAnalysisAndMonitoringOfInternetPrescriptionOpioidAbuse-RelatedPostingsStephenF.Butlera*,SynneWingVenutia,ChristineBenoita,RichardL.Beaulaurierb,BrianHoulea,

NathanielKatzac

aInflexxion,Inc.,Newton,MA02464USA,bFloridaInternationalUniversity,Miami,FL33199USA,cTuftsUniversitySchoolofMedicineSTUDYHIGHLIGHTS:Firststudythatsystematicallyconductspost-marketinginternetsurveillanceofprescriptionopioidanalgesicsOvera6-monthperiodin2005,48,293individualpostswerecaptured:1,813postsofOxycontin,940postsofVicodin,and27postsofKADIAN.Thesevaluesweresignificantlydifferent(p<.001).ThepercentageofKADIAN-relatedpostscodedaspositive(endorsesrecreationaluseandabuseofthedrug)was45.5%,comparedto68.4%forOxycontin(p=0.036),and57.6%forVicodin(p=0.29)NormalizedDataShowsSignificantlyLessKADIAN?RelatedAbusePostings

thanOxycontin

Quantitativemarketresearchstudytodeterminesize:Abuse-deterrentlong-actingmarketAlpharma’slongactingopioidagonist/antagonistcombinationDeterminebaselinepreferenceshareandhowitwouldchangewithintroductionofthreenewabuse-deterrentlong-actingopioids.Approximately300physiciansofmixedspecialtiesAbuse-DeterrentLong-ActingOpioidMarketQuantitativeConjointAnalysisStudyAbuse-DeterrentLong-ActingOpioidMarketQuantitativeConjointAnalysisStudyResultsindicatethatabuse-deterrent

productscouldtake

over50%ofthemarketfromtheexistingLAopioidproductsAlpharma’sopioidagonist/antagonistcombinationproductwouldgarnersignificantshareofthelong-actingopioidmarketeveniflaunchedsecondTypeofopioidanddeterrenttechnologyareviewedasmostimportantforprescribingAnopioidantagonist(pharmacologicdeterrent)wasmostoftenmentionedpositivelyasareasonforusingabuse-deterrentopioid,whiletherewasskepticismregardingphysicaldeterrentabuse-resistanttechnologyManyrespondentsindicatedthattheywouldtryseveralproductsandpicktheonethatwasbestfortheirpatientsandpracticeAbuseDeterrenceMattersAbuseDeterrentOpportunityLong-ActingOpioidMarket–2005(Actual)Long-ActingOpioidMarket–2010(Projected)OxyContin/Gx

42%Avinza

5%Duragesic/Gx

32%KADIAN?

4%MSContin/Gx

17%AbuseDeterrentLongActingOpioidsareProjectedtoCapture50%ofthe

Long-ActingOpioidMarketAbuseDeterrentProducts

50%Non-AbuseDeterrentProducts

50%KADIANSustained-release

pH-dependent

polymer-coatedshellBinderlayerSugarSphereNTSustained-release

pH-dependent

polymer-coatedshellOpioid

binderlayerSequesteredcoreKadianVersusAbuse-deterrentLong-actingOpioid(NT)Cole/AddictionResearchCenterInventory(ARCI)StimulationEuphoria(n=18)

(0:False,1:Morefalsethantrue,2:Moretruethanfalse,3:True;Maxscore:45)ClinicalProofofConcept:AntagonistAgonistIn-VivoRatioStudyThingsaroundmeseemmorepleasingthanusualIfearthatIwilllosethecontentmentthatIhavenowIfeelincompleteharmonywiththeworldand

thoseaboutme