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DATAMONITOR HEALTHCARE Contact details EXECUTIVE SUMMARY A brief overview Action points Acquiring a genomics company is a high cost, high risk strategy with no guaranteed return. Gaining exclusive access to a single genomics technology will not supply all of the acquirer's needs Pharmaceutical companies should develop networks of synergistic alliances with selected genomics companies Potential partners must offer additional benefits over and above the typical $300m+ headline value of a deal if they are to remain attractive to increasingly mature genomics companies GENOMICS: THE HYPE AND THE REALITY Key findings Introduction Probability of identifying compounds for clinical development Millennium/Bayer Millennium/Wyeth CuraGen/Bayer and CuraGen/Abgenix Conclusions Does genomics result in commercially viable products? Human Genome Sciences' pipeline Do early genomics derived products have good revenue potential? What is the future market size for genomics derived products? INVESTING IN GENOMICS Key findings Introduction Acquiring a genomics company Merck's acquisition of Rosetta Drug discovery versus product in-licensing Cost per genomics derived product Win-win licensing agreements Millennium Bayer GENOMICS: THE FUTURE DECODED Key findings Introduction: where is genomics going? Celera and the Human Genome Project: incremental advances in drug discovery Genomics companies mature Service providers become product marketers How will genomics company maturation affect pharmaceutical strategy? New Human Genome Sciences products become available Will HGS form new agreements? Conclusions What will follow genomics? Proteomics Pharmacogenomics Summary: development of genomics to 2010 APPENDIX Human Genome Sciences' financial statements Datamonitor's Pharmaceutical Strategy Business Unit Jennifer Coe Melanie McCullagh Jenny Berg