October 2003
Life Sciences Tools Industry
Background
This presentation contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by words such as "expects",
"anticipates","intends", "plans", "believes", "seeks", "estimates", "will" or words of similar meaning and include, but are not limited to, statements about the expected future business and financial performance of GE resulting from and following the Acquisition. These statements are based on management's current expectations and are inherently subject to uncertainties and changes in circumstances. Among the factors that could cause actual results to differ materially from those described in the forward-looking statements are factors relating to satisfaction of the Pre-Conditions and the Conditions, GE’s ability to successfully combine the businesses of GE Medical Systems and Amersham and to realize expected operating synergies from the Acquisition, and changes in global, political, economic, business, competitive, market and regulatory forces. More detailed information about certain of these factors is contained in GE’s and Amersham’s filings with the SEC. Neither GE nor Amersham undertakes any obligation to update the forward-looking statements to reflect actual results, or any change in events, conditions, assumptions or other factors.
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The foregoing does not constitute an offer for sale of any securities or an offer or an invitation to purchase any such securities. If and when GE commences its proposed acquisition of Amersham and the acquisition is implemented by way of a scheme of arrangement, any securities to be issued pursuant to the scheme of arrangement will not be registered under the Securities Act but will be issued in reliance on the exemption provided by Section 3(a)(10) thereof, and Amersham will furnish the acquisition document to the SEC under cover of a Form 6-K. If and when GE commences its proposed acquisition of Amersham and the acquisition is implemented by way of an offer rather than a scheme of arrangement, GE will file a registration statement relating to the offer with the SEC. If GE files a registration statement with the SEC, it will contain a prospectus and other documents relating to the offer. Such prospectus and other documents will contain important information about GE, Amersham, the offer and related matters. Holders of Amersham securities who are U.S. persons or who are located in the United States are urged to read such prospectus (if any) and other documents that would form part of such registration statement if and when it becomes available before they make any decision with respect to the offer. Holders of Amersham securities should also read the related solicitation/recommendation statement on Schedule 14D-9 that will be filed with the SEC by Amersham relating to the offer. Such prospectus and any other relevant documents filed by GE and Amersham with the SEC will be available free of charge at the SEC’s web site at www.sec.gov and from GE. These documents will also be available for inspection and copying at the public reference room maintained by the SEC at 450 Fifth Street, N.W., Washington, D.C. 20549, US. For further information about the public reference room, call the SEC at +1 800 732 0330.
The directors of GE accept responsibility for the information contained in this presentation. To the best of the knowledge and belief of the directors of GE (who have taken all reasonable care to ensure that such is the case), the information contained in this presentation for which they are responsible is in accordance with the facts and does not omit anything likely to affect the import of such information.
The contents of this presentation are not intended to mean that General Electric earnings or earnings per share for any period will necessarily exceed those of any prior year.
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Amersham Biosciences Overview
9
Life Science Tools Overview
9
Industry Dynamics and Challenges
9
Key Segments
9
Key Players
9
Drug Discovery and Development Process
9
Key Technologies
9
Key Amersham Offerings
5
Customers
– Research Labs, Biotechs,
Pharmaceuticals, Government
Competitors
– Waters, Applied Bio, Agilent,
Perkin Elmer, Invitrogen, Millipore, and others
Financial Summary
Industry Size: ~$15B
Industry Growth: 5 -10%
2000
2003E
Sal
es ($B)
Discovery Systems Protein Separation$0.9
$1.1
8%
CAGR
OP%
10%
11%
•
Excellent Product Offering
9
Protein Separations
9
Discovery Systems
•
High Value-add Delivers High Margins in
Protein Separations
9
30+% OP
•
Instruments and Flow Business
9
26,000 Unit Installed Base
(Lab +
Production)
Instruments and Reagents for Drug
Discovery and Manufacturing
Enabling Molecular Medicine
14% CAGR
(LTM 1H FY 2003)
Exciting New Platform … Great Business Today & Strategic Homerun
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Drug Development Process
Discovery
Systems
Development
& Clinicals
Manufacturing
Commercial &
•
~$25B Global Pharma
Spend … +11% CAGR
•
400+ New Investigational
Drug Filings Annually
•
30 New Drugs Approved
Annually
•
Protein Manufacturing
Capacity Growing 50%
per Year
•
~$40B Spend on
Development & Clinical
Trials … +12% CAGR
•
2,300 Total Clinical Trials …
300+ Protein-Based Trials
Discovery &
Research
Protein
Separations
$0.6B
Discovery &
Research &
Development &
Clinical Trials
Commercial &
Manufacturing
$0.5B
+
+
+++
35% Systems+
+++
--2003E
Revenue
65% ReagentsAmersham Sales to Pharmaceutical Customer Base…
Amersham Participates in All Phases of Process
… New Channel Opportunity for GE Imaging Equipment
($B)
7 Drug Development Process 300 350 400 450 500 550 No v -9 9 May -00 No v -0 0 May -01 No v -0 1 May -02 No v -0 2
Bio-pharmaceuticals
in Development
# in De ve lopm ent 199 2 199 3 199 4 199 5 199 6 199 7 199 8 199 9 200 0 200 1 200 2 20 0 3 e 20 0 4 e 20 0 5 e 20 0 6 e 0 40 80 120 160 200 Bioprocess sales (£m) No of approved biopharmaceuticalsDemand for Amersham Offerings Driven by
Rapid Growth of Life Sciences & Bio-Pharma
Researchers and Bio-pharma
Companies
Need Large Quantities of
Pure Proteins
for Drug R&D… and
More
for Production
Genomics & Proteomics
•DNA Analysis-Understand Basis of Disease… Why ? •Protein Analysis
-Understand Disease Function…How?
Bio-Assays
•ScreenPotential Drugs for Impact on Living Cells. • Analyze Drug Candidates for
Toxicology, i.e. Safety
Production Separations
•Scale-Up& Large-Scale Biopharma Manufacturing Development & Clinicals Commercial & Manuf’g Discovery & Research
Key Amersham Technologies
Protein
Separations
Lab and Production
Discovery Systems
Sequencing, Genotyping, Expression
Analysis, Protein Analysis, Screening
Well-Positioned with Lots of Ways To Grow
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Instruments and Reagents for Analytical Studies
$15B
$11B
Life Science Tools
Industrial Tools
• Industrial Applications • Petrochemical • Environmental Testing • Agricultural / Food • Biological Studies • Pharmaceuticals/ Biotech • Drug Discovery &Development
$26B Industry
Provide Enabling
Technologies for Drug
Development a nd
Molecular Medicine
Source: SDI and GE estimatesLife Sciences Tools: … Enabling Molecular and Personalized Medicine
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Life Science Tools Industry Dynamics
• Genomics, Sequencing efforts
• NIH Funding
Historic
Drivers:
• Proteomics Sequencing /
Protein Drug Development
• Homeland Defense Funding
Current
Drivers:
$5.5 $6.2 $6.8 $7.3 $7.8 $8.3 $3.6 $4.2 $4.9 $5.7 $6.4 $7.1 1998 1999 2000 2001 2002 2003E $15B $9B ’98 – ’03E 9% CAGR Reagents InstrumentsIndustry Growth Rates
Growth Shifted from Genomics-Based to Proteomics-Based Tools
Instruments 54% Reagents46%
Segments
Pharmaceutical 40% Government / Academia 40% Biotechnology 20%Customers
Instruments and Reagents for Use in
the Drug Discovery, Development &
Manufacturing Process
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Historical Bottlenecks
9Focused in the Target Discovery Phase 9Historically the Global
Pharmaceutical Industry was built on few targets
Instruments and Reagents Help Biotech and Pharma Overcome New Challenges
New Challenges9With the advent of the post-human genome era, number of targets discovered has exploded 9Current challenges for pharmaceutical companies
include:
• Validating new targets
• Reducing the drug development time • Faster prediction of drug failure
• Rescue of drugs with utility for patients with certain genetic makeup
Key Challenges in Drug Discovery and Development
Discovery & Research
Development
Manufacturing
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Major Life Sciences Players
Selected Players by Segment …
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Genomics
•
Affymetrix , Agilent,
Amersham
, Applied Bio,
Invitrogen, Orchid, Perkin Elmer, Qiagen, Sequenom
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Proteomics
•
Agilent,
Amersham
, Applied Bio, Becton Dickinson,
Bio-Rad, Bruker, Invitrogen, Qiagen, Thermo, Waters
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Bioassays
•
Amersham
, Becton Dickinson, Beckman Coulter,
Perkin Elmer, Tecan
9
Protein Separations
•
Amersham
, Bio-Rad, Millipore, Waters, others
9
Molecular Spectroscopy
•
Bruker, Perkin Elmer, Shimadzu, Thermo, Varian
9
General Lab Equipment
•
Agilent, Beckman Coulter, Mettler Toledo, Shimadzu,
Thermo, Waters
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Reagents
•
Applied Bio,
Amersham
, Becton Dickinson, Bio-Rad,
Invitrogen, Perbio, Qiagen, Sigma Aldrich, Techne
Top Life Science Companies by
2002 Revenue ($B) *
Source: Annual Reports, Analyst Research * Revenues from Life Sciences Only
Applied Bio
$1.7
Thermo Electron
$1.2
Amersham
$1.0
Shimadzu
$1.0
Perkin Elmer
$1.0
Waters
$0.9
Millipore
$0.7
Invitrogen
$0.6
Becton Dickinson
$0.6
Mettler Toledo
$0.6
Beckman Coulter $0.6
Agilent
$0.5
Varian
$0.5
Bio-Rad
$0.4
Affymetrix
$0.3
Sigma Aldrich
$0.3
Qiagen $0.3
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Life Science Customers
Pharmaceutical 40% Government / Academia 40% Biotechnology 20% Top Pharmaceutical Companies by R&D Spending Top Biotech Companies by R&D Spending
Life Science Customer Segments …
8 2002 R&D Spending ($B) 0 2 4 6 Pfize r GSK AstraZ enec a Aven tis Roch e Novar tis Merc k
BMSEli LillyWyeth Source: SEC Reports
Driven by NIH Funding
0 0.5 1 Amge n Gene ntec h Mille nium Biog en Chiro n Genz yme
Source: SEC Reports 2002 R&D Spending ($B)
Source: Deutsche Bank
0 5 10 15 20 25 30 1996 1997 1998 1999 2000 2001 2002 2003 2004E NIH Funding ($B) J&J 14
Instrumentation
Life Sciences Reagents• High End Equipment for Advanced Scientific Discovery: - Mass Spectrometry - DNA Microarrays - Protein Microarrays - DNA Sequencers - High Throughput Screening -• Productivity Instruments Used for Routine Analysis:
- High Performance Liquid Chromatography
Instruments
$8B Segment
CAGR: 4-8%
Reagents
$7B Segment
CAGR: 7-13%
Instruments
54%
Reagents
46%
Revenue by Segment
2003E
• Consumables Utilized in R&D And Drug Manufacturing • Molecular Biology:
- Cloning and DNA/RNA Manipulation
- Proteins & Immunoassays - Electhrophores Reagents to
Separate, Analyze & Isolate DNA, RNA and Proteins
-• Cell Cultures: - Tissue Culture Media - Animal Sera
- Growth/Attachment Factors • Protein Reagents:
- Protein Expression and Functional Protein Studies
Reagents and Consumables
Two Categories of Life Sciences Tools … Instrumentation And Reagents
15 9Target Discovery 9Target Validation 9Lead optimization 9Pre-Clinical and Clinical Studies
The Process to Create New Drugs
9Biopharmaceutical Manufacturing
Discovery & Research
Development
Manufacturing
Genomics
Size $3.0B AAGR 9-12%Proteomics
Size $2.5B AAGR 10-15%Bioassays
Size $2.0B AAGR 9-12% • Sequencing • Gene Expression • SNP Analysis • Protein Analysisand Identification • Drug Screening • Toxicology
Amersham Offerings
Protein Separations
Size $1.5B AAGR 10-15% • Protein Purification • Biopharmaceutical manufacturing 9Lead DiscoveryMolecular Spectroscopy
Size $1.0B AAGR 3-5%General Laboratory Equipment
Size $3.0B AAGR 3-5%The Process...
The Key Segments...
Source: Deutsche Bank, SDI and GE estimates
Bioinformatics /Laboratory Information Management Systems
Size $2.0B AAGR 6-9%16
Key Technologies Enabling Drug Discovery and Development
Genomics
Definition
• Study of Genes• Sequencing of organisms to understand gene function • Analysis of genetic variation • DNA Sequencing • DNA Microarrays • Reagents • Study of Proteins • Need to understand gene function in terms of protein activity • Protein-protein interactions • Gel Electrophoresis • Mass Spectroscopy • Reagents
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Key
Technologies
Amersham Offerings
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9
9
Business
Drivers
• Experiments to identify potential drugs suitable to enter human clinical trials • Pharmaceutical companies need to increase productivity in drug discovery to meet revenue growth targets • High Throughput Screening • Reagents9
Discovery & Research
Development
Manufacturing
Bioassays
Proteomics
Protein
Separations
• Process used for the manufacturing of Biopharmaceuticals • Growing number of approved Biopharmaceuticals and Biopharmaceuticals in Clinical Trials • Liquid Chromatography • Reagents
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Key Amersham Offerings
18 9Target Discovery 9Target Validation 9Lead optimization 9Pre-Clinical and Clinical Studies
Discovery & Research
Development
Manufacturing
Genomics
Proteomics
Bioassays
• Sequencing MegaBACEtm TempliPhitm Genephortm • Gene Expression CodeLinktm Lucideatm CyeDyetm • SNP Analysis CodeLinktm • Protein Analysis and Identification ETTANtm 2D DIGE Typhoontm • Drug Screening LEADseekertm Cytostar-Ttm Biotraktm • Toxicology IN Cell Analyzertm Custom Labels
Laboratory Information Management System:
ScierratmProtein Separations
• Protein Purification & Scale-up AKTAtm • Biopharmaceutical manufacturing SepharoseTM Chromaflowtm Sourcetm 9Lead DiscoveryKey Amersham Offerings
9BiopharmaceuticalManufacturing
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DNA Sequencers are used in first step
of drug discovery to determine the
sequence of nucleotides in a given
sample of DNA
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Systems that break apart a sample of
DNA, tag each of its nucleotides with a
different color and uses a laser beam to
cause the tagged nucleotides to
fluoresce. The colors are optically
scanned and a sequence of nucleotides
is established
9
After, the completion of the Human
Genome Project has has shifted to
studies of “companion” genomes.
DNA Sequencers Demand Has Shifted from Human Genome Project
DNA Sequencing
Amersham Offers MegaBACE
TM,
a Fluorescence-based DNA
Analysis System
MegaBACE
TMKey Technologies Enabling Drug Discovery and Development
Genomics
Discovery & Research
Development
Bioassays
Proteomics
Protein
Separations
Manufacturing
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9
DNA Microarrays are Glass wafers
coded with complementary
sequences of Genes. DNA Probes
bind to their complements in a given
biological sample through a
technique known as hybridization
9
Used primarily in Gene Expression
and Genotyping studies for Target
Identification and Target Validation
9
Can be also used for Toxicology
Studies, during clinical trials to
stratify patient groups , and for
diagnosis and Prognosis…Have the
potential to be used for
Pharmacogenomics
Amersham Offers
CodeLink
TM, DNA Microarrays
for Gene Expression and SNP
Analysis
CodeLink
TMKey Technologies Enabling Drug Discovery and Development
DNA Microarrays
Genomics
Discovery & Research
Development
Bioassays
Proteomics
Protein
Separations
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9
Gel Electrophoresis is Technology used
to performed Protein Expression
analysis.
9
Proteins are separated on a gel by their
charge and size, and appear as spots on
the gel. The gel is then digested with an
enzyme and the proteins are isolated for
further analysis using an instruments
such as a Mass Spectrometers
9
Gel Electrophoresis systems can offer
one- and two-dimensional separation,
with the latter providing more detailed
analysis as proteins are separated
horizontally and vertically across the gel
Core Technology to Perform Protein Expression Analysis
Amersham Offers Ettan
TMand
2D DIGE
TM,Integrated Systems
for Protein Expression Analysis
Ettan
TMKey Technologies Enabling Drug Discovery and Development
Gel Electrophoresis
Genomics
Discovery & Research
Development
Bioassays
Proteomics
Protein
Separations
Manufacturing
22
Amersham Offers Ettan
TMMALDI-TOF, an Integrated Platform for
Protein Analysis and Identification
… Amersham Also Has a Strategic
Alliance With Thermo in This
Segment
9
Mass Spectrometers are used to
identify and quantify analytes through
measuring the molecule mass to
charge ratio
9
A sample is converted into positively
or negatively charged particles that
then proceeds into a mass analyzer,
where using a magnetic field the
particles are separated based on mass
9
Useful technology for quantification of
compounds and for determining
chemical and structural information
9
Premier methodology for Protein
characterization
Mass Spectrometry Is Leading Technology for Protein Studies
Ettan
TMMALDI-TOF
Key Technologies Enabling Drug Discovery and Development
Mass Spectrometry
Genomics
Discovery & Research
Development
Bioassays
Proteomics
Protein
Separations
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Amersham Offers LEADseeker
TM,
a Multi-Modality System for
Screening Assays Using
Fluorescent, Chemiluminescent
and Radioactive Chemistries
9
High Throughput Screening
technology includes the use of liquid
handling and sample preparation
products and detection systems to
screen hundreds of thousands of
compounds for biological activity
against a test assay, to identify
potential drug candidates.
9
Demand is driven by the products of
the Human Genome Project , which
has yielded a multitude of targets
against which to screen compounds.
High Throughput Screening Driven by Products of the Human Genome Project
LEADseeker
TMKey Technologies Enabling Drug Discovery and Development
High Throughput Screening
Genomics
Discovery & Research
Development
Bioassays
Proteomics
Protein
Separations
Manufacturing
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9
Liquid Chromatography systems are
used to separate bio-molecules
according to their hydrophobic/
hydrophilic properties
9
A solution containing the
bio-molecule to be isolated together with
a number of other contaminants is
poured down a column packed with
resins. The target bio-molecules and
some contaminants bind to these
resins and are detached in turn when
buffers are passed down the column
Liquid Chromatography Is A Key Technology for BioPharma Manufacturing
Amersham Offers AKTA
TM, a
Chromatography Platform for
Product Purification and
Separation
AKTA
TMKey Technologies Enabling Drug Discovery and Development
Liquid Chromatography
Genomics
Discovery & Research
Development
Bioassays
Proteomics
Protein
Separations
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9
Reagents are biological and chemical
materials consumed by scientists
performing experiments to uncover
the sequence and function on genes
9
Three Types of Reagents:
•
Molecular Biology: Used for the
studies of genes and proteins
•
Cell Culture: Used in both
Research and Bioproduction
•
Chromatography Consumables:
Used for separation, identification
and characterization of Proteins
Reagents Represent Majority of Amersham’s BioSciences Business
65% of Amersham Biosciences
Revenue Derived from Reagents and
Consumables
Amersham Systems Based Reagents
:
•
MegaBACE
TM: DNA Sequencing /
Genotyping
•
Ettan
TM2D DIGE: Protein Expression
Analysis
Amersham Stand-Alone Reagents:
•ECL Advance: Protein Analysis
•
TempliPhi
TM: DNA sample preparation
•
CyDye: Fluorescent Labelling
Genomics
Discovery & Research
Development
Bioassays
Proteomics
Protein
Separations
Manufacturing
Reagents
Key Technologies Enabling Drug Discovery and Development
Reagents
Reagents
Reagents
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Isolation and Purification of Proteins on
Small Scale (Laboratory) and Large
Scale (Bioprocess)
9
Most Commonly Used Techniques Are
Chromatography & Cross-Flow
Filtration
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Needed for Production Active Drug
Substances in a Highly Pure Form and
in High Yields
9
Very Strict FDA Regulation for the
Manufacturing of Biopharmaceuticals
… FDA Focus on Identity, Purity and
Potency
9
FDA Requires Bio-Equivalence to be
Demonstrated Between Clinical Trial
Process and Commercialized Products
9
Critical for Protein Separations
Suppliers To Get Into Drug
Development Process Early
Protein Separations Enables Production of Pure Protein-Based Drugs at High Yields
Fermenter Removal Ultrafiltration Virus Clearance Capture Cell Harvesting Polishing
Centrifugation and/or filtration Chromatography: Capture target protein, wash away majority of contaminants Chemical/heat/filtration
Removing any particles by filtration
Final chromatography step to remove contaminants very similar to the product Adsorption of contaminants by chromatography
Spotlight on Protein Separations
Protein Separations … Key Technology for Manufacture Biopharmaceuticals
Protein Purification Process … Instruments & Reagents
“Biopharmaceuticals, or protein-based drugs,
represent the most attractive classes of
therapeutic compounds in the market …
generating over $24B in revenue in 2002, an
increase of 34% over 2001 … with more than
