Business plan competition for market entry of a new pharmaceutical.

1. Novartis Masterminds Competition Entry

3. Novartis’ drug Valsartan is dominant drug in hypertension market with €93M annual sales Note: Assumes that Exhibit 3 data represents all sales for ARB drugs in Spain. Uses ratios from Exhibit 5 to build out broader market view. Source: Case competition materials Novartis category profit heavily dependent on Valsartan

6. € 15M potential from increasing hypertension drug penetration in Spain Grow market Steal share Shift volume Market Potential for New HTN Drug in Spain is worth 52M Euro Limited white space for new drugs to increase market size & spend per HTN patient Incremental patients unlikely to differentially be prescribed Zelisar (28% share for Novartis) Novartis Zelisar opportunity not greater than 15M Euro from increasing treatment of HTN patients * Based on figures from Frost & Sullivan “European Drugs Market Analysis”, published October 2006 Market Potential for New Drug Novartis Share of Opportunity Max Sales Opportunity by increasing HTN penetration 52M € 28% 15M €

8. € 18M/year in volume is accessible by stealing share from competitors Source: Interview with IMS Health analyst (2 December 2009) Grow market Steal share Shift volume “ Shifting share from competitors is the most difficult thing to do, especially if the new drug is not revolutionary.” Interview with IMS Health Analyst Assumed share gain (of ARB market) of 10 points by 2014, shifted to Zelisar 10% of €188M ARB market = €18M opportunity

11. Swapping Valsartan volume and growing share raises 2014 revenue ~€42M vs. base case Note: Assumes universal 5% organic growth for all years Base case: do nothing Move & Grow Strategy Valsartan base business Zelisar organic growth Zelisar Valsartan swap- out volume Steal competitor share

13. Focus of different marketing vehicles should shift over time, matching evolving strategy 2010 2011 2012 onwards Prepare Valsartan swapping effort Major Valsartan swapping campaign Identify top doctors who promote Zel. Send doctors to major conferences; key messaging around Zelisar as latest drug Lay out benefits of swap to Zelisar Benefits of Zelisar against competitor drugs Prepare for phase 2: In-depth trial, Zelisar vs. non-Novartis competitor drugs Steal competitor share Lay out benefits of moving to “next generation” Zelisar from Valsartan Aspirational campaign Vehicle Strategic focus: Shift Valsartan volume to Zelisar by 2012 Steal market share from competitor drugs Clinical trials Communication to medical prof. Branded communications Sales force Medical conferences