Pharmaceutical Industryand Boehringer Ingelheim

Paul FonteyneExecutive Vice President

Head of Marketing & Sales, Prescription Medicines

Pharmaceutical Industry Leader in Fairfield County

Boehringer Ingelheim Pharmaceuticals, Inc. - Confidential 2

Ridgefield, Connecticut

Boehringer Ingelheim Pharmaceuticals, Inc. - Confidential 3

Background

• Founded in 1885 in Ingelheim, Germany

• World’s largest family-owned pharmaceutical company

• Operates worldwide - 156 affiliated companies in over 60 countries

• Focus: Human Pharmaceuticals (95%) and Animal Health

• Products in a variety of therapeutic areas- Cardiovascular, Respiratory, CNS, Virology, Oncology,

Immunology, Urology, Rheumatology, GI/Metabolic

• Research focused- Medicines for those diseases where genuine

therapeutic innovation can be demonstrated.

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Worldwide - 2004

•Total Net Sales $ 10.2 Billion-Human Pharma 96%-Animal Health 4%

•Total Employees nearly 36,000

•R&D+C Expenditures $ 1.23 Billion

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Top 20 Corporations 2004Global Pharma Market

40

35

30

25

20

15

10

5

Source: IMS Health, IMS Health / MAT Q4 2004

in EUR billion

Pfize

r

Glaxos

mith

klin

e

Sanofi

-Ave

ntis

Johnso

n &

Johnso

n

Merck

& C

o

Novar

tis

Astra

zenec

a

Roche

Bristo

l-Mye

rs

SQB.W

yeth

Abbott

Lilly

Amgen

Take

da

Boehrin

ger

Ingelh

eimSch

erin

g

PloughBay

er

Yam

anou

chi-

Fujis

awaEisa

i

Scher

ing A

G

37.8

23.4

19.518.3 17.8

16.3 15.9

12.411.2 10.4 10.3 9.3

7.9 6.8 6.14.9 4.5 3.9 3.7 3.4

Boehringer Ingelheim Pharmaceuticals, Inc. - Confidential 6

Top 20 Corporations ranked by Growth

30

25

20

15

10

5

-5

-10

-15

-20

Boehringer Ingelheim Growth Rate above Top 20 Corporations (+8.2%)

MAT to Q4 2004 in Constant Euro

in %

Amgen

Boehrin

ger

Ingelh

eimRoche

Abbott

Astra

zenec

a

Sanofi

-Ave

ntis

Wye

thEsa

i

Johnso

n &

Johnso

n

Novar

tis

Scher

ing A

GLil

ly

Take

daPfi

zer

Merck

& C

o

Glaxos

mith

kline

Yam

anou

chi-

Fujis

awa

Bayer

Bristo

l-Mye

rs

SQB.

Scher

ing

Plough

25.5

14.3

10.2 9.4 9.2 9.0 9.0 8.4 8.0 7.3 6.4 6.1 5.84.7 3.5

1.8

-1.2-3.9

-13.2

1.3

Source: IMS Health, IMS Health / MAT Q4 2004

Boehringer Ingelheim Pharmaceuticals, Inc. - Confidential 7

Prescription MedicinesOur Six Highlights

flomax®

mobic®

micardis®

viramune®

spiriva®

mirapex®

Boehringer Ingelheim Pharmaceuticals, Inc. - Confidential 8

Ridgefield Campus Projects

• Lead Discovery Technologies Building dedicated in 2001

• Kilo Lab• Completed in 2005, produces drug substances up to 5

kg quantities for research purposes.

• On-site Child Care Center; September 2006• 19,000 sq ft stand alone building with a capacity for

256 infants, toddlers and preschoolers.

• Physical Sciences building; March 2007• 86,000 sq ft building to accommodate relocation of

our cardiovascular diseases research program from Germany.

• 3 floors, 119 work stations for scientists and management.

Boehringer Ingelheim Pharmaceuticals, Inc. - Confidential 9

BI Cares Foundation

The Foundation’s mission is to improve lives through innovative philanthropic contributions and donations of healthcare products and resources.

• BI Cares Foundation Patient Assistance Plan (170,000 patients expected to be enrolled in 2005)

• Hurricane Rita and Katrina assistance

• Product Donation Program ($160M in product donation anticipated in 2005)

• Cash contributions in 2004 - $1.9M

Boehringer Ingelheim Pharmaceuticals, Inc. - Confidential 10

Community Involvement - CT• Lung Health Screening Program• United Way of Northern Fairfield County• Regional Hospice of Western Connecticut• American Red Cross• Connecticut PBS – Family Science Expo• Abilities Beyond Disabilities (DATAHR)• Connecticut United for Research Excellence• Ives Center for the Arts• Girl Scout Council of SW Connecticut• Regional YMCA Center for Arts & Humanities• Special Olympics – Connecticut• Western Connecticut State University

Boehringer Ingelheim Pharmaceuticals, Inc. - Confidential 11

Pharmaceutical Industry Challenges - Government• Prescription drug importation

• AKA price controls

• Promotion restrictions

• Lower market penetration of new products

• Increased costs of doing business• Energy, taxes, fees, liability

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• Continued innovation

• Continued ability to fund R&D• Cost of and time to develop new products

• Attracting talented, highly educated workforce

• Continue to effectively and efficiently serve a diverse and changing marketplace• Physicians, patients, institutions, payors

Pharmaceutical Industry Challenges - Industry

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Summary

• BI is a growing, innovative pharmaceutical company and employer in Fairfield County

• BI is committed to delivering value to patients and to the healthcare community

• Challenges to the healthcare marketplace and pharmaceutical industry are significant

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Web information

• http://www.boehringer-ingelheim.com Worldwide web

• http://us.boehringer-ingelheim.com US company web

• https://www.pparx.org/Intro.php Partnership for Prescription Assistance

• http://us.boehringer-ingelheim.com/about/philanthropy/Patient_Assistance_Program.html BI Cares Foundation Patient Assistance web

Pharmaceutical Industryand Boehringer Ingelheim

Paul FonteyneExecutive Vice President

Head of Marketing & Sales, Prescription Medicines

Pharmaceutical Industry Leader in Fairfield County