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THE TANTALUS PARADIGM

Kevin LeshukGeneral Manager

Celgene Inc

March 30, 2011

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Company MissionCompany Mission

Celgene is building a major global

biopharmaceutical company

focused on the discovery, development andcommercialization

of innovative therapies for unmet medical

needs in cancer and

immune-inflammatory diseases

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Question 1Question 1

Who is Tantalus?1. A Roman God who was known to tease mortals with

promises of ecstasy and riches but never delivered. (originof the word “tantalize”)

2. A Romulan commander and arch enemy of Capt. Kirk fromthe original Star Trek series

3. A Greek mythology figure banished to Hades by Zeus forrevealing secrets of the Gods.

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The answer is …

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Question 2Question 2

I think the following group best describesTantalus’ fate?

1. The Payer2. The Patient3. The Physician

4. The Pharma/Biotech Industry

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Question 3Question 3

I believe payers, decision makers and the public ingeneral, recognize and appreciate the value ofinnovative medicines brought forth by the

Pharmaceutical/Biotech industry

1. Strongly agree2. Somewhat agree

3. Don’t know4. Somewhat Disagree5. Strongly Disagree.

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“Economic Value of Innovative Health TechnologyDiscussion Paper February 2011

“Economic Value of Innovative Health TechnologyDiscussion Paper February 2011

• The findings provide empirical support that manufacturers are being sufficiently rewarded by patent protectionand 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 fromtechnology 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 last10 years

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Value of InnovationValue of Innovation

Years From First Therapy Years From First Therapy

Proportion

Proportion

0.20.2

0.40.4

0.60.6

0.80.8

1.01.0

00 22 44 66 88 1010

TransplantTransplant

IMiDsIMiDsNovel agentsNovel agentsMedian 6 yrsMedian 6 yrs

1212

Standard therapyStandard therapy

MedianMedian3 years3 years

Standard Chemotherapy: 27 Randomized Trials; 6633 patients

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

MPVBMCPVMCPVBAP

ABCMMOCCA

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“With the novel therapies we are now seeing a quantumleap in two-year survival from 50% to now 93%,

which is just 3% short of what a healthy person of acomparable age would expect.”

Brian G.M. Durie, MD, Chairman and Co-founder

International Myeloma Foundation (ASCO 2008)

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Smarterfaster pharma…Smarterfaster pharma…

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Can we ever escape?Can we ever escape?

“The void created by the failure tocommunicate is soon filled withpoison, drivel, andmisrepresentation”