Warner-Lambert Reaffirms 30 Percent EPS Growth in 1999 and Expects to Achieve 20 Percent EPS Growth in 2000.

MORRIS PLAINS, NJ--(BUSINESS WIRE)--May 18, 1999--

Company Reveals New Co-Promotion Agreement with Sankyo

Warner-Lambert Company (NYSE: WLA) Chairman, President and Chief Executive Officer, Lodewijk J. R. de Vink, today said that, based on current planning assumptions, the Company is on track to achieve 30 percent diluted earnings per share growth for 1999 and 20 percent diluted earnings per share growth in 2000.

The Company also announced a new agreement with Sankyo Co., Ltd. to co-develop and market a second generation compound from the thiazolidinedione, or "glitazone," class to treat type 2 diabetes; and reviewed several product candidates in early and late-stage development.

Speaking to financial analysts as part of a half-day series of presentations on the Company's pharmaceutical pipeline, de Vink said, "Warner-Lambert has achieved seven straight quarters of 30 percent-or-better growth in earnings per share. We expect to achieve our goal of 30 percent earnings per share growth in 1999, to approximately $1.92 a share. Furthermore, we project earnings per share growth of 20 percent in the year 2000, a growth rate we expect to be in the top tier of the companies with whom we are logically compared."

de Vink noted that the Company's "organic-plus" strategy targets alliances as critical to Warner-Lambert's growth and ability to build shareholder value. He said, "today, more than 25 percent of the Company's discovery dollars are focused on alliances with biotech firms. Many offer intellectual property or research technologies, thus allowing Warner-Lambert to extend drug discovery beyond the Company's boundaries." Citing Warner-Lambert's strategy to meet its growth objectives, de Vink said the Company is "increasing the value of existing drugs through strategic life-cycle management and more aggressive market penetration. We are capitalizing on our strong financial position in order to fund acquisitions and alliances that improve our pipeline, expand our geographic reach, or reduce our costs." He added that while Warner-Lambert is no longer a company "built on three equal platforms," the consumer products businesses allow the Company to grow shareholder value on multiple fronts."

Sankyo Collaboration

Warner-Lambert also announced that it has entered into an agreement with Sankyo to co-develop and market R-119702, a novel anti-diabetic compound that is a second-generation glitazone for the treatment of type 2 diabetes. Based on its preclinical profile, R-119702 has the potential to provide greater efficacy than other glitazones, including effective treatment even in the most advanced stage of the disease when other agents are ineffective. The compound, significantly more potent than other known glitazones, will enter clinical trials later this year and both companies anticipate an accelerated development schedule.

Research and Development Productivity

Reviewing progress in pharmaceutical development, Peter B. Corr, Ph.D., president, pharmaceutical research and development, also cited the Company's "organic plus" strategy of internal growth complemented by acquisitions and alliances. Dr. Corr said, "Warner-Lambert is markedly accelerating its major initiatives to ensure our sustainable long-term growth." The Company has a total of 32 research and development alliances and numerous partnerships, each one linked to strengthening Warner-Lambert's pipeline. Dr. Corr said that the Company expects to spend nearly $1.2 billion in pharmaceutical research and development this year -- a 51 percent increase over 1998 and almost triple since 1995. In addition, he said that by the end of this year, the Company will have more than 4000 colleagues in research and development worldwide.

Highlighting Warner-Lambert's achievements during the past year, Dr. Corr said the Company moved nine compounds into preclinical development and submitted a record 10 investigational new drug applications (INDs). In addition, three projects moved into Phase I clinical trials, four advanced into Phase II and two moved into Phase III full scale development. In the U.S., two new drug applications (NDAs) were filed in addition to seven supplemental new drug applications (sNDAs). Outside the U.S., 13 submissions were made to regulatory authorities.

Citing the Agouron acquisition as having complemented and enhanced the Company's research and development efforts, Dr. Corr said Agouron has provided Warner-Lambert with access to an additional library of more than 400,000 compounds, doubling the total number now available to the Company's global research teams. Agouron enhanced the Company's already strong drug discovery capabilities with access to state-of-the art technologies such as structure-based drug design that will enable and enhance Warner-Lambert's efforts to develop novel small-molecule drugs that play key roles in such serious diseases as cancer and AIDS. Another Agouron core competency is combinatorial chemistry - a technology that generates hundreds of thousands of compounds that can be analyzed by computerized high-speed robotics in screening assays against target molecules. With the inclusion of Agouron into the Company's portfolio, Warner-Lambert now has 46 new chemical compounds and 55 distinct clinical projects under active development. In 1999, Warner-Lambert's goals are to obtain marketing approvals or approvable letters on seven projects (NDAs/sNDAs) and to file regulatory submissions in the U.S. on another seven projects. Dr. Corr said the Company expects to file 11 INDs, and to select at least 10 high quality lead compounds and move them into active development. Through 2003, Warner-Lambert anticipates 37 NDAs and sNDAs to be submitted for regulatory approval in the U.S.

Life Cycle Management Program Overview

Robert Zerbe, M.D., senior vice president, worldwide clinical research and development, Parke-Davis Research and Anthony H. Wild, Ph.D., president, Warner-Lambert worldwide pharmaceutical sector presided over a discussion of the Company's plans to extend and expand the life-cycle of some of its most important marketed products. This includes plans to explore their full potential for therapeutic benefit and commercial success.

In 1998, Lipitor led Warner-Lambert's pharmaceutical sector growth with worldwide sales of $2.2 billion -- more than double the previous year. Lipitor, an HMG- CoA reductase inhibitor, "or statin," continues to be the most prescribed cholesterol-lowering agent in the U.S., currently holding a 45 percent share of new prescriptions in the U.S. market for statins, by far the largest segment of the overall cholesterol-lowering market. Looking ahead, the Company envisions the global market for statins increasing to $10 billion, or more, and has set its sights on exceeding a 50 percent market share.

With Yamanouchi as its collaborator in Japan, the Company is preparing to launch Lipitor in the world's second biggest market for cholesterol lowering drugs, with worth an estimated $2.5 billion today. Hopeful of an introduction as early as the first quarter of next year, Warner-Lambert's ultimate sales goal in Japan is in excess of $1 billion per year.

The Company's life-cycle management plan for Lipitor is targeted at maximizing the compounds compelling clinical advantage -- better efficacy and lower doses than other available statins. In total, Warner-Lambert has nearly 200 clinical trials in over 100,000 patients underway to explore the full therapeutic range of Lipitor.

Randall Whitcomb, M.D., vice president, clinical research, Parke-Davis reviewed the outcome of a March 26th FDA Advisory Committee meeting to review Rezulin (troglitazone) post-marketing safety and efficacy data and the Company's supplemental new drug application for combination therapy with sulfonylureas and metformin. Rezulin is an oral agent for the treatment of type 2 diabetes. The Advisory Committee members reaffirmed that the benefits of Rezulin therapy outweigh the risks in combination therapy and commented favorably on the use of the drug in combination with metformin and sulfonylureas. Dr. Whitcomb said the Company is in the process of agreeing on labeling changes which should be finalized soon.

Dr. Zerbe also discussed the Company's epilepsy therapy, Neurontin (gabapentin), approved in 1993. He acknowledged that the product is facing the near-term loss of its epilepsy use patent but added that the Company has two additional patents extending into the next decade, which are currently in litigation with two potential generic competitors. However, the ultimate legacy of Neurontin will be the knowledge Warner-Lambert has gained about the entire class of compounds, the gabapentenoids. Citing the next generation compound, pregabalin, Dr. Zerbe said that the Company expects that it will be a superior product with greater potency, absorption and a longer duration of action.

Celexa (citalopram), Forest Laboratories' selective seratonin reuptake inhibitor for the treatment of depression, is co-promoted by Warner-Lambert and currently holds more than a 7 percent share of new prescriptions. Celexa, discovered by H. Lundbeck A/S, has quickly surpassed recent entrants into the category. Launched only 8 months ago, the Company expects Celexa to achieve 1999 sales of $300 million.

Accupril (quinapril), launched in 1991, has risen to the number three spot in the U.S. ACE inhibitor market, fueled by a continuing aggressive and creative clinical program focused on the drug's unique activity in tissue ACE - and translating that effect into real clinical advantages. For example, in the Company's "Quo Vadis" study, Accupril produced a 77 percent reduction in the occurrence of events in patients undergoing coronary by-pass surgery.

Omnicef (cefdinir), a third generation oral cephalosporin licensed from Fujisawa, holds the number one position in its category in Japan. Clinical studies demonstrated Omnicef's extended spectrum of activity, high potency, effectiveness once or twice daily and, in a 5-day regimen, superiority to penicillin in the treatment of pharyngitis. Omnicef has also demonstrated efficacy in a wide spectrum of clinical infections including community acquired pneumonia, chronic bronchitis, sinusitis and skin infections.

Discovery and Exploratory Development

Wendell Wierenga, Ph.D., senior vice president, worldwide preclincal research, development and technologies, Parke-Davis Research, reviewed the Company's early drug discovery efforts and exploratory development programs. Dr. Wierenga also highlighted several of the Company's almost three dozen key research and development alliances and partnerships. Many of these partnerships are biotech alliances and they range from drug discovery and development to enabling technologies. He cited these alliances as contributing four new candidates for clinical development in 1999.

Dr. Wierenga discussed a new collaboration with Berlex/Schering AG in thrombosis research that was announced today. Specifically, the companies plan to co-develop inhibitors of factor Xa which are nearing clinical evaluation. Joining another Xa inhibitor in Warner-Lambert's pipeline, these compounds have the potential to prevent thrombus formation and are being targeted for indications that include acute coronary syndromes and the prevention of deep vein thrombosis, including primary and secondary prevention.

Agouron Acquisition

Peter Johnson, president, Agouron Pharmaceuticals, Inc., a wholly-owned subsidiary of Warner-Lambert provided analysts with an overview of their research and marketing efforts. Viracept, Agouron's first commercial product and the country's leading product for the treatment of HIV infection and AIDS, continues to be the subject of a very aggressive Phase IV program of more than 125 studies. Johnson reviewed a portfolio of approximately 20 research and development initiatives spanning the areas of virology, oncology and opthalmology. The most advanced compounds include:

-- Prinomastat (AG3340), an MMP (matrix metalloprotease) inhibitor, the most advanced product in Agouron's oncology program, is currently in large-scale pivotal clinical trials and could move toward an NDA submission by the end of next year. Prinomastat is also being studied for age-related macular degeneration, a progressive loss of central vision that is the leading cause of blindness in the elderly.

-- AG7088, a compound designed to inhibit the rhinovirus 3C protease, the most frequent cause of the common cold, is potently active against all 48 strains of virus that have been tested. Currently in Phase II studies, AG7088 could enter large scale Phase III clinical studies later this year and possibly lead to an NDA by the end of 2001.

-- AG1549, a non-nucleoside reverse transcriptase inhibitor, is currently completing Phase II dose-ranging studies in preparation for larger pivotal trials that, if successful, could lead to an NDA submission toward the end of next year.

-- Remune, an immune-based therapeutic agent for the treatment of HIV infection and AIDS, was discovered by The Immune Response Corporation and is currently being co-developed by Agouron. Remune, a first in class therapy, represents a novel approach to treating HIV infection and is intended to supplement current anti-HIV drugs. Phase III surrogate marker trials involving Remune are scheduled to begin this year.

Advanced Development Overview

Dr. Zerbe also reviewed progress in pharmaceutical development and highlighted compounds either awaiting marketing clearance or in advanced clinical development. Dr. Wild addressed the commercial potential of these and other selected compounds. The products include:

-- FemHRT (norethindrone acetate/ethinyl estradiol), a continuous combined estrogen replacement product, is highly effective in the prevention of bone loss in postmenopausal patients. A head-to-head study comparing FemHRT to Prempro (conjugated estrogens/medroxyprogesterone acetate tablets) is well underway and an additional study comparing FemHRT to both Prempro and Evista (raloxifene hydrochloride) will begin soon.

-- Clinafloxacin, a quinolone antimicrobial, currently awaiting FDA approval. When approved, clinafloxacin will be the most potent antibiotic available in the U.S. and other major markets. The product's use will be limited to parenteral, in-hospital use due to photosensitivity and glucose lowering, both potentially serious side effects.

-- Darbufelone, a dual inhibitor for the treatment of rheumatic disorders including arthritis and inflammation. While clinical trials confirmed the excellent gastrointestinal safety profile of the drug, the efficacy in osteoarthritis and rheumatoid arthritis was no better than NSAIDs. Preclincial data indicates that higher doses may be more efficacious and the Company has reinitiated efficacy studies at higher doses.

-- Igmesine, a unique antidepressant that was shown to be superior to placebo in a Phase II study of outpatients in Europe. Three additional Phase II placebo and positive controlled studies began last year which should provide results by early summer.

-- Avasimibe, an ACAT inhibitor, for the reversal or prevention of atherosclerosis represents a new frontier in vascular disease. The Company has initiated eight clinical studies evaluating various functional and anatomical markers which should begin reporting next year. Warner-Lambert envisions avasimibe being used broadly and along with lipid lowering medications to reverse atherosclerotic plaque.

-- Zenarestat is an aldose reductase inhibitor licensed from Fujisawa for the prevention of diabetic neuropathy. Following encouraging Phase II studies, large-scale prevention trials are currently underway. One trial is using nerve conduction velocity and quantitative sensory function to determine benefit. The other trial is an endpoint study looking at ulcer and amputation. The results of the two prevention trials will not be known for approximately two years after enrollment is complete.

-- Pregabalin, an anticonvulsant in the gabapentonoid class, is under development for epilepsy, neuropathic pain and other CNS disorders such as panic, generalized anxiety, social phobia and bipolar disease. The compound is minimally metabolized, making drug interactions unlikely. 26 studies are already underway or completed and an additional 50 are planned and scheduled to start within the next year. The Company said that of all the compounds in its pipeline, pregabalin is the most commercially promising.

-- A new Neurontin/NSAID (non-steroidal anti-inflammatory drug) combination product with striking synergies has shown promise in preclinical models. The Company has preclinical evidence that when Neurontin is co-administered with ulcerogenic doses of NSAIDs such as indomethacin, there is clear reduction of gastrointestinal ulcers. Phase II studies in dental pain and osteoarthritis flare with gabapentin and naproxen have been initiated.

Warner-Lambert is a global company devoted to discovering, developing, manufacturing, and manufacturing quality pharmaceutical, consumer health care, and confectionery products. It employs more than 43,000 people worldwide.

Statements made in this press release that state "we believe," "we expect" or otherwise state the Company's predictions for the future are forward-looking statements. Actual results might differ materially from those projected in the forward-looking statements. Additional information concerning factors that could cause actual results to materially differ from those in the forward-looking statements is contained in the Company's annual report on Form 10K-A for the year ended December 31, 1998 filed with the U.S. Securities and Exchange Commission. For a copy of this filing, call the media contacts listed on the press release.

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