THE TANTALUS PARADIGM

Kevin Leshuk General Manager Celgene Inc

March 30, 2011

Company Mission
Celgene is building a major global biopharmaceutical company focused on the discovery, development and commercialization of innovative therapies for unmet medical needs in cancer and immune-inflammatory diseases

Question 1

Who is Tantalus?
1. A Roman God who was known to tease mortals with promises of ecstasy and riches but never delivered. (origin of the word tantalize) 2. A Romulan commander and arch enemy of Capt. Kirk from the original Star Trek series 3. A Greek mythology figure banished to Hades by Zeus for revealing secrets of the Gods.

The answer is

Question 2

I think the following group best describes Tantalus fate?

1. 2. 3. 4. The Payer The Patient The Physician The Pharma/Biotech Industry

Question 3
I believe payers, decision makers and the public in general, recognize and appreciate the value of innovative medicines brought forth by the Pharmaceutical/Biotech industry
1. 2. 3. 4. 5. Strongly agree Somewhat agree Dont know Somewhat Disagree Strongly Disagree.

Economic Value of Innovative Health Technology Discussion Paper February 2011

The findings provide empirical support that manufacturers are being sufficiently rewarded by patent protection and price review mechanisms Typically lead to little or no net health benefits for technologies under patent protection. Our findings further strengthen applied health research initiatives to monitor and re--assess net benefits from technology throughout a product lifecycle. When cheaper generic versions of previous innovations are available, prices of future newly patented drugs should reflect their value. Based on our analysis, there are no observable increasing benefits from health technology innovation in the last 10 years

Value of Innovation
Standard Chemotherapy: 27 Randomized Trials; 6633 patients
1.0 0.8

Proportion

0.6 0.4 0.2

Transplant IMiDs Novel agents Median 6 yrs Standard therapy Median 3 years
0 2 4 6 Years From First Therapy 8 10

MP VBMCP VMCP VBAP ABCM MOCCA

12

Myeloma Trialists' Collaborative Group. J Clin Oncol. 1998;16;12:3832

With the novel therapies we are now seeing a quantum leap in two-year survival from 50% to now 93%, which is just 3% short of what a healthy person of a comparable age would expect. Brian G.M. Durie, MD, Chairman and Co-founder International Myeloma Foundation (ASCO 2008)

Smarterfaster pharma

Can we ever escape?

The void created by the failure to communicate is soon filled with poison, drivel, and misrepresentation