pharmaceutical custom manufacturing offering challenges dr marc new lonza group ag cphi japan april 16 2003 slide 2 contents 1 the pharma industry environment increasing cost of r&d productivity issue tougher political and regulatory profit warnings generic exposure margin deterioration collaboration partnerships between biotech big 3 platform technologies drug discovery development 4 small molecules chemical manufacture in molecule 5 biopharmaceutical mammalian microbial fermentation costs fewer nmes are drivers recent mega deals trends expenditure number nme introductions 1991 2002 0 50 100 150 200 250 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 source news from cmr international march strategic decision entities fda approval times back to historical levels 10 20 30 40 60 6 8 12 14