C N S. Drug Discoveries: what the future holds. A m a j o r n e w s t r a t e g i c s t u d y. Understand the prospects for this US$92 billion market!

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A m a j o r n e w s t r a t e g i c s t u d y C N S Published August 2008 Drug Discoveries: what the future holds Unique market share and sales forecasts by product to 2014 A comprehensive examination of 5 major CNS therapy areas Detailed competitor analysis of current and upcoming products With this new 350+ page analysis you can... Easily evaluate and understand the prospects for 60 leading and upcoming products Assess the impact on companies of new product introduction Understand the impact of generic competition in key sectors Appreciate the drivers and dampeners which will help or hinder market growth Review the Phase II product pipeline Five key CNS sectors Alzheimer s disease Multiple sclerosis Depression Parkinson s disease Schizophrenia F o r e a c h t h e r a p y a r e a t h e r e p o r t p r o v i d e s Comprehensive Overview Patient statistics: Prevalence, diagnosed and treatment rates Patient populations in the US, Europe and Japan Growth drivers: Risk factors (genetics, age, sex), medical guidelines, unmet clinical need and off-label use in other CNS disorders Growth dampeners: Safety issues, label changes, impact of generics, reimbursement and ethical issues An overview of the value of the CNS market: Global sales Sales growth to 2014 Major players and market share 2007 and 2014 A review of the major players based on market share/sales Current treatments: Competitor analysis of leading brands and companies Patent Sales forecasts by product 2007-2014 Drugs in Phase II/III development: Focus on new classes of drugs and companies involved Sales forecasts by year of product launch to 2014 Unique competitor ratio analysis: Drugs within each sector are analysed in the report using 5 point criteria for success evaluation Who will be the winners & losers? Identify the winners and losers within each sector based on competitor analysis, current pipeline products and market conditions Understand the prospects for this US$92 billion market!

THE GLOBAL CNS MARKET The global market for CNS disorders is now one of the largest therapeutic sectors with sales estimated at almost US$92 billion in 2007. In the new edition of this best-selling report we have identified 60 drugs or therapeutic agents which we believe have the potential to reach the market by 2014, and could offer significant advancement in treatment and address areas of large unmet clinical need. All CNS categories have attracted, and continue to attract, significant investment from the pharmaceutical industry in the development of safer, more efficacious medicines. In some areas such as depression and schizophrenia, many of the new agents are based on similar chemical classes to existing treatments ( me too ), but may be better tolerated and/or more efficacious. In contrast, other areas such as Parkinson s disease (PD), Alzheimer s disease (AD) and multiple sclerosis (MS) have seen a plethora of innovative medicines emerging that have novel mechanisms of actions. These may lend themselves for use as both monotherapies and in combination with existing therapies in the symptomatic treatment of disease or in some cases in modifying the course of the disease. Several drugs are being developed for multiple indications and this is particularly apparent in depression and schizophrenia where cognitive symptoms are addressed. The majority of companies focus on a diverse range of CNS disorders attempting to address unmet clinical need and large patient populations. However, in some markets such as MS, a handful of companies dominate the market, whilst in AD and PD there are many players, including biotechnology and biopharmaceutical companies, where large specialist sales forces may not be necessary to promote novel medicines. Thorough research, hard-hitting opinion and year-by-year forecasts This report provides a complete review of the markets, products and pipeline prospects for 5 key CNS areas. Firstly, the individual markets, the major players, treatment drivers, market resistors, potential patient populations and unmet clinical needs have been analysed, in addition to which, many therapies and pipeline products currently in Phase II and III development have been evaluated. Secondly, we have reviewed each of the leading brands and potential new brands and identified their key attributes, based on a number of criteria including: Novelty/rationale for mechanism of action. Proof of concept/clinical data. Management/clinical expertise. Competition within the marketplace/gaining share of voice through marketing, advertising and sales force ability. Risks associated with developing a drug within a therapeutic class. Thirdly, we have established a competitor ratio analysis based on each of the criteria mentioned above. Each criterion attracts an award of up to 10 points, with a maximum score of 50, thus enabling the establishment of an Espicom ranking table in each segment of the market, dependent on the drug/company s relative attributes and enabling comparison across therapy areas. Fourthly, based on the competitor ratio analysis of each therapeutic section, we have been able to draw conclusions as to which CNS therapy areas receive R&D focus from the leading pharmaceutical companies and which therapy areas are most likely to result in product launches by 2014.

Multiple sclerosis With the launch of up to 12 new disease-modifying agents, three vaccines and one novel drug designed to treat the symptoms of multiple sclerosis (MS) and improve quality of life, the MS market is in an exciting phase of evolution. The MS market is estimated to be worth almost US$8 billion in 2008, with a growth rate of 10.6% year-on-year. It is the fifth largest segment of the CNS markets considered in this report and has attracted considerable R&D investment from the big pharmaceutical companies, biotechnology companies and specialty pharma. Over the next six years a number of oral agents are expected to be launched that could drastically change the way in which MS patients are treated. These include: Novartis' fingolimod, Teva's laquinimod, Merck KGaA s Mylinax (cladribine), sanofiaventis' teriflunomide and Biogen Idec's BG-12 in Phase III development, and GSK/Mitsubishi Tanabe Pharma's firategrast, MediciNova's ibudilast and Biogen/UCB's CDP323 in Phase II development. Three companies have taken on the ambitious task of developing vaccines to treat MS and each has adopted a unique approach to addressing the underlying causes of the disease. Orchestra Therapeutic's NeuroVax targets three proteins expressed on T-cell receptors whilst Opexa Therapeutics' Tovaxin uses attenuated autologous cells to stimulant an immune response. Bayhill Therapeutics is developing BHT-3009, a tolerising DNA vaccine. All vaccines are in Phase II development and could reach market by 2012. Key MS questions answered: What is the estimated global population for MS in 2014 and what % will be diagnosed and treated? Which off-patent MS treatments are resistant to generic competition? Will Biogen Idec, Teva and Merck KGaA be able to defend their leading positions in 5 years time? There are 7 late-phase pipeline products which target the underlying cause of MS what are their strengths and weaknesses? BG-12 Biogen Idec Campath Bayer Fingolimod Novartis Lacquinimod Teva MBP 8298 BioMS/Lilly Mylinax Merck KGaA Teriflunomide sanofi-aventis Neurelan Elan/Acorda MULTIPLE SCLEROSIS CONTENTS What is multiple sclerosis and why are we interested in it? Incidence, diagnosis rates and treatment; now and in the future Multiple sclerosis categories The treatable multiple sclerosis patient population growth 2007A - 2014E Global Multiple Sclerosis Market The major players Players and products in 2007 Players and products in 2014 CURRENT MS TREATMENTS Disease-modifying agents Analysis of Phase lll Drugs Disease-modifying agents Multiple sclerosis symptoms Global Sales Forecasts of Phase lll Multiple Sclerosis Drugs 2007A - 2014E Disease-modifying agents Vaccines Global Sales Forecasts of Phase ll Multiple Sclerosis Drugs 2007A - 2014E Products Clinical Diagnostic Test for Multiple Sclerosis Expanded Disability Status Scale Global Multiple Sclerosis Drugs Sales 2007A-2014E Competitor Ratio Analysis

Alzheimer s disease By 2014, there will be considerable change in the Alzheimer s disease (AD) market due to generic competition, better utilisation of acetylcholinesterase inhibitors and new product launches which, for the first time, will treat the condition and not the symptoms. AD affects approximately 19 million people worldwide, with a prevalence of approximately 1 per cent in the total population, although the risk of being afflicted with AD increases with age. In 2007, approximately US$5.5 billion was spent on the symptomatic treatment of AD. The vast majority of this revenue was generated by just four drugs within two main classes, the acetylcholinesterase inhibitors (AChEIs) and N-methyl-D-aspartate (NMDA) receptor antagonists. However, since all four brands face patent expiration within the next four to five years, this will have a considerable impact on the revenues of the companies involved. Since all currently-available treatments are symptomatic treatments, aimed at alleviating the symptoms of the disease and trying to slow the deterioration of the patients, there is a significant unmet need for improved drugs that can modify the underlying course of the disease. There is considerable research being undertaken in this area, although there have been many casualties including Bellus Health's Alzhemed (tramiprosate), Axonyx' phenserine and sanofiaventis' xaliproden (all discontinued from Phase III trials), and most recently, the lack of efficacy demonstrated by Myriad Genetics/Lundbeck's Flurizan (tarenflurbil). The current front runner is Wyeth/Elan's bapineuzumab, although this too is facing challenges in development. It may be some time before the first disease-modifying agents emerge which could revolutionise the way AD is treated. Key AD questions answered include: By what % will the number of AD patients being treated in developed markets increase annually? How are approvals for new indications affecting the sales potential of Eisai/Pfizer s Aricept? What are the characteristics and prospects for Wyeth/Elan s bapineuzumab? What competition could arise for Forest/Lundbeck s Namenda/Ebixa? Aricept Bapineuzumab Ebixa/Namenda Exelon Razadyne Pfizer/Eisai Elan/Wyeth Lundbeck/Forest Laboratories Novartis Johnson & Johnson/Shire ALZHEIMER'S DISEASE CONTENTS What is Alzheimer's disease and why are we interested in it? Incidence, diagnosis rates and treatment; now and in the future The treatable patient population growth 2007A - 2014E Global Alzheimer's Disease Market The major players Players and products in 2014 CURRENT ALZHEIMER'S DISEASE TREATMENTS Acetylcholinesterase (AChE) Inhibitors NMDA antagonists Analysis of Phase lll Drugs Global Sales Forecasts of Phase lll Alzheimer's Disease Drugs 2007A - 2014E Products Alzheimer's Disease Patient Model Global Alzheimer's Disease Drugs Sales 2007A - 2014E Competitor Ratio Analysis

Parkinson s disease In 2007, approximately US$3.6 billion was spent on the symptomatic treatment of Parkinson s disease (PD). Although this neurodegenerative disease affects approximately 1% of the population its prevalence increases with age, thus it is likely to become more commonplace due to patient demographics and become a greater burden to healthcare payers. PD patients are treated with a cocktail of drugs which are adapted to the patients' needs as the disease progresses. There is no cure and current therapies are relatively effective at treating the symptoms in the early stages but less so in advanced PD, and there remain significant side effects. Whilst generic levodopa remains the cornerstone of treatment and is widely available relatively cheaply, its chronic use is not necessarily limited by budget, but by its long-term effectiveness. Hence, the more costly dopamine agonists have gained utility in the treatment of the early stage of the disease helping to spare levodopa treatment. However, over the next six years many of the leading dopamine agonists face patent expiration, enabling generics to become more freely available. Meanwhile some companies have new improved dopamine agonists in their pipelines such as Solvay s pardoprunox or more potent monoamine oxidase inhibitors such as Merck KGaA/Newron's safinamide. Some companies have picked up the gauntlet and run to develop new disease-modifying agents which could revolutionise the way advanced PD is treated. For example, Bayer's high-risk, high-reward approach to developing spheramine is a novel cell therapy that may halt the progression of PD. Key PD questions answered include: What percentage of the treatable population for PD has been diagnosed in Europe, US and Japan? Which PD products will face generic challenges by 2014? What are the commercial prospects for Bayer s revolutionary disease-modifying agent spheramine? By 2014, Boehringer Ingelheim and GSK will have lost considerable PD market share to whom and what products will make the difference? Apokyn Britannia/Ipsen Azilect Lundbeck/Teva Pharmaceuticals Comtan franchise Novartis/Orion Istradefylline Kyowa Hakko Mirapex Boehringer Ingelheim Neupro UCB Pardoprunox Solvay Requip GlaxoSmithKline Safinamide Merck KGaA/Newron Spheramine Bayer/Titan Pharmaceuticals PARKINSON S DISEASE CONTENTS What is Parkinson's disease and why are we interested in it? Incidence, diagnosis rates and treatment; now and in the future Global Parkinson's Disease Market The major players Players and products in 2014 CURRENT PD TREATMENTS Dopamine agonists Monoamine oxidase inhibitors Catechol-Omethyltransferase inhibitors Analysis of Phase lll Drugs Global Sales Forecasts of Phase lll Parkinson's Disease Drugs 2007A - 2014E Products Parkinson's Disease Patient Model Global Parkinson's Disease Drugs Sales 2007A - 2014E Competitor Ratio Analysis

Schizophrenia The antipsychotic market generated global sales of US$19.6 billion, accounting for 21% of global CNS sales in 2007. While atypical antipsychotics now account for over 80% of global sales, concerns over safety are leading to a slow down in growth. The market is ready for the launch of the third-generation atypical antipsychotics which may offer improved tolerability and may not be associated with extrapyramidal symptoms, cardiotoxicity, weight gain or detrimental metabolic changes. Two products have recently been launched, with four in latestage clinical development: these could be tomorrow s leading brands if they have improved tolerability and safety profiles. Meanwhile, companies which market today s leading brands continue to optimise their drugs life-cycles pursuing new formulations (intramuscular, slow release) to aid compliance, new indications elderly. (major depression, anxiety disorders, autism, maintenance of bipolar disorder) and to initiate additional Phase IV trials to optimise and educate the community regarding the courses Tables, of treatment. Charts & Figures Importantly, Patient population many of forecast these to products 2012 by type have showing been available since the 1990s % diagnosed and their and treated market (acute exclusivity & chronic) is running out. All the US market share for 4 insomnia drugs 2005 leading brands face patent expiry (in the US) by 2014, with the European market share for insomnia drugs (Ambien & first generic, risperidone, in mid-2008. Imovane) 2005 Innovation Japanese within market the share market for insomnia has been drugs limited, (Ambien although & a number Amobane) of products 2005 that are in Phase II development target Major players in the market 2005 and 2012 new pathways to treat cognitive impairment associated with Comparison of leading brands schizophrenia (CIAS) through the modulation of neurokinin-3 Patent of leading brands receptor or 5-HT6 receptors. Competitor analysis of currently available therapies Key Forecast schizophrenia of global drug sales questions by year to answered 2012 include: Drugs in development to treat insomnia What % of the market will be taken by generics in 2014? Competitor analysis of upcoming products of note: What indiplon underpins (Neurocrine), the eplivanserin US$1.5 billion (sanofi-aventis), sales estimate for J&J s Invega? Gaboxadol (Merck & Co./Lundbeck), Silenor (Somaxon There Pharmaceuticals) are 19 schizophrenia and VEC-162 (Vanda treatments Pharmaceuticals) in Phase II what are Forecast global sales by year to 2012 of new drugs they and who is developing them? Competitor ratio analysis of drugs and companies As Lilly, J&J and AstraZeneca lose market share, which Winners & losers in the insomnia market companies Discontinued will insomnia emerge drugs as players in this valuable sector? Abilify Bristol-Myers Squibb/Otsuka Asenapine Schering-Plough Bifeprunox Lundbeck/Solvay Fanapta Vanda Pharmaceuticals Geodon/Zeldox Pfizer Invega Johnson & Johnson Lonasen Dainippon Sumitomo Pharma Lurisadone Dainippon Sumitomo Pharma Risperdal Johnson & Johnson Seroquel AstraZeneca Zyprexa Eli Lilly SCHIZOPHRENIA CONTENTS What is schizophrenia and why are we interested in it? Incidence, diagnosis rates and treatment; now and in the future Global Schizophrenia Market The major players Players and products in 2007 Players and products in 2014 CURRENT TREATMENTS Atypical Antipsychotics Analysis of Late-Phase Drugs D/5-HT receptor antagonists Global Sales Forecasts of Late- Phase Schizophrenia Drugs 2007A - 2014E Products Assessment of Antipsychotic Efficacy in Schizophrenia Assessment of Antipsychotic Efficacy in Bipolar Disorder Competitor Ratio Analysis

Depression Antidepressants accounted for around 21% of the total CNS drug sales in 2007, with sales of US$19.4 billion. However, we anticipate that within our forecast period to 2014, the market will show negative growth as the emergence of new products is offset by the impact of generics on leading brands. Current market leaders will launch a number of combination therapies to optimise the life-cycle management of their drugs including Eli Lilly's Symbyax. Other companies have opted to develop second-generation products to bolster their franchises such as Pristiq, a metabolite of Wyeth's Effexor. But they are only likely to offer marginal improvements over existing therapies. Meanwhile some companies will try to gain a foothold in the market by gaining approval for established products from other therapeutic areas such as AstraZeneca's schizophrenia treatment, Seroquel. Pharmaceutical companies have also been evaluating other ways to modulate monoaminergic pathways through the agonism and antagonism of a variety of serotonin receptors such as, 5-HT 1A partial agonists (MN 305 from MediciNova), 5-HT 2 antagonists (valdoxan from Servier/Novartis) and even beta-3 receptor antagonists (amibegron from sanofi-aventis), as well as developing dual acting compounds which block serotonin receptors and the uptake of serotonin itself, such as Clinical Data's vilazodone. Research into alternative targets such as CRF and NK receptors may pay off as products enter late-stage development such as sanofi-aventis' saredutant. However, there have been many casualties and it is still uncertain whether these drugs will offer any significant benefit over current therapies. Key depression questions answered include: What series of events are undermining Pfizer s position? Five new products are expected to launch by 2010 what are they and who are their developers? Sales of Wyeth s Pristiq could reach US$1.2 billion by 2014, but what are the prospects for its generically challenged sister product Effexor in the same year? Cipralex/Lexapro Lundbeck/Forest Laboratories Cymbalta Eli Lilly Effexor Wyeth NS2358/GSK372475 NeuroSearch/GlaxoSmithKline Prozac Eli Lilly Paxil/Seroxat GlaxoSmithKline Pristiq Wyeth Saredutant sanofi-aventis Valdoxan Novartis/Servier Wellbutrin GlaxoSmithKline Zoloft Pfizer DEPRESSION CONTENTS What is depression and why are we interested in it? Incidence, diagnosis rates and treatment; now and in the future Global Antidepressant Market The major players and products in 2007 The major players and products in 2014 CURRENT TREATMENTS Selective serotonin reuptake inhibitors (SSRIs) Serotonin and noradrenaline reuptake inhibitors (SNRIs) Noradrenaline and dopamine reuptake inhibitors (NDRIs) Analysis of Phase lll Drugs Neurokinin receptor antagonists Melatonergic receptor agonists Other late-phase drugs Global Sales Forecasts of Phase lll Antidepressant and Anti-Anxiety Drugs 2007A - 2014E Triple uptake inhibitors Other Phase ll drugs of interest Global Sales Forecasts of Phase ll Antidepressant Drugs 2007A - 2014E Products Assessment of Depression Global Antidepressant Drugs Sales 2007A - 2014E Competitor Ratio Analysis

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