Contents:

SUMMARY Cethromycin: Phase III success should allow for me-too market entry and above consensus growth ADVANCED LIFE SCIENCES Overview Cethromycin THE CURRENT RESPIRATORY INFECTION MARKET Overview Respiratory infections are primarily treated with macrolides or fluoroquinolones Cethromycin would be a second-in-class ketolide agent behind Sanofi-Aventis Ketek CETHROMYCIN CLINICAL TRIALS Two Phase III trials are enrolling to evaluate cethromycin 300 mg once-daily in CAP We expect complete trial enrollment by year-end 2006 and top line results in Q1 2007 7 Previous single arm studies demonstrated efficacy in CAP Comparator trials of 150 mg dose of cethromycin failed in bronchitis and pharyngitis Trial success likely based on pharmokinetics differences between doses Cethromycin has low activity against H. influenzae, but unlikely to affect CAP trial FACTORS IMPACTING CLINICAL USE With generic formulations of leading brands available, macrolide use may persist Cethromycins Phase III trial uses an inferior competitor likely to hurt marketing efforts Keteks recent toxicity case report could create cautious attitudes toward cethromycin Despite obstacles, cethromycin could take share from Ketek due to rare side effect Ketolide class is not overcrowded cethromycin will help establish positioning With a CAP indication, cethromycin is likely to be used liberally off-label Success of cethromycin would be highly dependent on aggressive marketing CETHROMYCIN FORECAST Physicians indicate that the ketolide market could support another agent Abbott collaboration and royalty structure APPENDIX Healthcare Disclosure information Ask the analyst List of Tables Table 1: Expected Milestone events for cethromycin Table 2: Phase II data for cethromycin in respiratory infections Table 3: Phase III data for cethromycin in respiratory infections Table 4: Ketolide Class Forecast - 2006-2012

Companies Mentioned

Pfizer Advanced Life Sciences Sanofi-Aventis