EXHIBIT 99.2
Monsanto and Pharmacia & Upjohn
Creating a Leading
Pharmaceutical Company
with Top-Tier Growth
Prospects
Transaction Highlights
Financial Structure: o Stock-for-stock merger of equals transaction
Exchange Ratio: o 1.19 Monsanto shares for each P&U share
Board Membership: o 50% Monsanto / 50% P&U
Headquarters: o Corporate and
Pharma headquarters, Peapack, NJ
o Agricultural headquarters, St. Louis, MO
Stock Exchange Listings: o New York, Stockholm
Accounting / Tax: o Pooling of interests, tax free to shareholders
Expected Closing: o Second Quarter 2000
Agriculture IPO: o Public offering of up to 20% as soon
as practicable
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Board and Management
Board of Directors 50 / 50
Chairman (Non-Executive) Robert Shapiro
CEO and President Fred Hassan
Senior EVP Richard De Schutter
EVP and CFO Christopher Coughlin
Chief Scientific Officer Philip Needleman, Ph.D.
CEO Agricultural Business Hendrik Verfaillie
3
Financial Highlights
Combined Revenue Preliminary 1999 Est.
[Bar chart with dollars in billions on verticle axis,
"Total", "Pharma" and "AG" on horizontal axis.
Total is $17 Bn, Pharma is $11.8Bn (22% growth, footnote 1)
and Ag is $5.2 Bn (23% growth, footnote 2)]
Combined Market
Capitalization -
$50Bn+
Employees -
60,000
1 Adjusted for divestments
2 Including acquisitions
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[Triange in center of page with text "Creating the Growth Engine".]
Combination Creates High Growth Pharmaceutical Company
Superior R&D Platform
o Robust Phase III pipeline
o Enhanced discovery
o World-class development capability
o $2 Billion+ R&D investment
Global Leadership in Sales and Marketing
o Leading sales presence in U.S. and other key markets
o Ability to execute global launches
o Demonstrated launch capabilities with Celebrex,
Xalatan, Detrol
Top-Tier Growth
o High growth potential of current products
o Freshness Index: more than one-third of sales
generated from new products
o Strong near term pipeline
o Minimal patent exposure
o $600 Million in cost synergies drives earnings and value
creation
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Strong Growth Platform
1999 Est.
Revenue
Product Indication ($000) % Growth
Celebrex Arthritis and Cancer $1,400 + + +
Prevention
Xalatan Glaucoma $500 50%+
Detrol Overactive Bladder $300 200%+
Zyvox Anti-infective Filed
Valdecoxib Arthritis / Pain III
Parecoxib Hospital Analgesia III
Eplerenone Hypertension / III
Congestive Heart Failure
Oncology Broad product and $800+
franchise technology platform
Source: Securities research estimates
6
COX-2 Platform Provides Exciting Growth Prospects
o Celebrex: Most successful new product launch in history
o $1.4 billion 1999E sales
o $6 billion NSAID market expected to double in the next few years
o Unique strategic partnerships enhance growth
o COX-2 platform provides robust growth through additional blockbuster
opportunities
o valdecoxib and parecoxib pain and arthritis indications
o Cancer prevention
o OTC applications
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Strong Patent Position and Low Exposure to Patent Expiration
Patent Expiration
Zyvox 2014
Celebrex 2013
Detrol 2012
Xalatan 2011
Camptosar 2007
Percentage Sales at Risk of Product
Patent Expiration (1999 - 2003)
Compared to Total 1998 Pharma Sales
[Bar chart with numbers (0-60) on horizontal
axis and the following companies on the horizontal axis:
Astra / Zeneca
Merck
Eli Lilly
Schering Plough
SB
Pfizer
Roche
Bristol Myers
Newco]
Source IMS:SMR
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Leading Sales and Marketing Force
Number of Sales Representatives (1998)
[Bars appear after name indicating relative size of Rx Sales Force
in descending order.]
U.S. Rx Sales Force
Pfizer
J & J
Merck
BMS
Glaxo Wellcome
NewCo 3,800
Aventis
AHP
Novartis
Key Western European Markets
Rx Sales Force (1)
Aventis
Roche
Glaxo
NewCo 2,500
Merck
Pfizer
SKB
Novartis
Notes: (1) U.K., Germany, France, Italy
Source: Strategic Reports, Analyst Estimates
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Pharmaceutical Combination Drives Top- Line Synergies
Benefiting from larger sales forces
o Celebrex
o Detrol
o Vestra
o Zyvox
o Hospital and Oncology products
Attractive in-licensing/ co-promotion partner
10
Global Critical Mass With Strong U.S. Presence
1999E Pharmaceutical Geographic Presence
Searle P&U
[Pie Chart here: North America 74%; [Pie Chart here: North America 42%;
Europe 18%; Latin America 4%; Europe 36%; Latin America 5%;
Japan 2%; and Other 2%] Japan 11%; and Other 6%]
Pro Forma
[Pie Chart here: North America 56%;
Europe 78%; Latin America 4%;
Japan 8%; and Other 4%]
Source: Company estimates 1999 Estimated Revenue
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Leading Pharmaceutical Research Platform
o Research & Development investment of $2Bn+
o Core R&D areas:
o Arthritis / Inflammation
o Oncology
o Infectious Disease
o Cardiovascular
o Central Nervous System
o Metabolic Diseases
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Attractive Combined Near-Term Product Pipeline
____ Searle
____ P&U
Estimated Launch Dates
1999 - 2000E 2001E- 2002E
Celebrex - Pain / Inflammation Parecoxib - Acute Pain
Zyvox - Infectious Disease Valdecoxib - Second Generation COX-2
Vestra - Depression Eplerenone - Congestive Heart Failure
Aromasin - Advanced Breast Cancer and Hypertension
Pegvisomant - Acromegaly Tifacogin - Sepsis
Leridistim - Oncology
TPO - Oncology
SnEt2 - Macular Degeneration
Almotriptan - Migraine
Total Potential Peak Sales $8Bn - $10Bn
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Combined Depth of Pharmaceutical Pipeline
22
Pre-Clinical Phase I Phase II Phade III Pre Total
IND Registration Compounds
15 6 13 15 7 56
Breakout by Disease Area
o Oncology: 23
o Cardiovascular / Metabolic: 8
o CNS: 5
o Pain / Arthritis: 3
o Infectious Diseases: 2
o Asthma: 2
o Women's Health: 2
o Other: 11
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Robust Pharmaceutical Sales Growth Driven by New Products
Mid to high teens revenue growth
[Chart here: Years 1998 - 2002 on horixontal axis and
"Base (Note 1), Growth Products, COX-2 and Pipeline on vertical axis.]
1 Includes royalties & other
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Cost Synergies
[Pie Chart here: Administrative and Corporate - 31%,
Sales and marketing - 20%, Manufacturing and
Distribution (COGS) - 16% and Research and
Development - 33%.]
Highlights
o $600M of annual cost
synergies to increase earnings
and drive value creation
o Majority implemented over
three years
o Expected cost of restructuring
is $500M - $800M
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Strong Pharmaceutical Growth Momentum
Chart here: 1995E with arrow labeled "Earnings" to 2004E.]
Key Pharma Highlights
o Industry leading growth rate
o Gross Margin: 80% and growing
o More than $2Bn R&D spending achieves competitive scale
o Strong industry patent position
o Synergies drive value creation
o Continuous profit margin improvement approximately
1% per year
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Post-Merger Integration
Rapid assimilation while preserving growth momentum
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Highlighting the Ag Business Through An IPO
o Managed as an autonomous business
o Focused strategy
o Separate Board of Directors
o Entrepreneurial leadership with aligned incentives
o Facilitates tracking of pharmaceutical and agricultural performance
o High growth opportunity with a strong capital structure
o IPO to be undertaken as soon as practical
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Highlighting an Autonomous Ag Subsidiary
o Strongly growing revenue and earnings while major competitors are declining
o Roundup is the industry leader with $2.5Bn in sales
o Sustained volume growth of 18 - 20% per annum over the past five years
o Strong profit growth in ex-US markets (post- patent expiration)
o Leading seed positions enable technology delivery
o Technological leader in biotechnology and genomics
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Integrated Agricultural Strategy Drives Strong Performance
[Chart here: triangle with "Seeds/Biotech", "Downstream Rennesen/Animal AG"
and "Ag Chem" in vertices, "R&D Engine" in center of triangle.]
o Deliver short-term and long-term value
o Rapid market share gains in key technologies
o Mid-teens compounded annual increase in operating earnings
o Unique integrated capabilities in place
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Strong Ag Performance With Growth Opportunity
[Chart here: 1999E with arrow labeled "Earnings" to 2004E.]
Key Ag Highlights
o 1999 expected sales over $5 billion
o EBITDA margins in the mid-20% range
generates strong sustainable cash flow
o R&D expenditures of $600 million
fuel pipeline upside
22
NewCo Will Achieve Top-Tier Financial Goals
Key Financial Goals
o Sustainable double- digit revenue growth
o Net Income growth to exceed 20% per year
o Strong financial position driven by debt reduction programs
o IPO proceeds
o Divestment of Monsanto Nutrition and Consumer businesses
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NewCo Delivers . . .
o Powerful new product pipeline
o Sustainable revenue growth
o Significant margin expansion
o Strong earnings growth
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Monsanto and Pharmacia & Upjohn
Creating a Leading
Pharmaceutical Company
with Top-Tier Growth
Prospects
Forward- Looking Information
Certain statements contained in this presentation, such as statements concerning
the combined company's anticipated financial or product performance, its
pipeline, plans for growth and other factors that could affect future operations
or financial position, and other non-historical facts, are "forward-looking
statements" (as such term is defined in the Private Securities Litigation Reform
Act of 1995). Such statements often include the words "believes," "expects,"
"anticipates," "intends," "plans," "estimates," or similar expressions. Since
these statements are based on factors that involve risks and uncertainties,
actual results may differ materially from those expressed or implied by such
forward-looking statements. Such factors include, among others: the ability to
attain estimated expense savings, the ability to continue to successfully market
existing products, which may be adversely impacted by the introduction of
competitive products; the combined company's ability to integrate the two
businesses and other prior mergers and acquisitions; the combined company's
ability to successfully develop and market new products, the ability to expand
the market for existing products; the ability to fund research and development
activities; the ability to get to market ahead of competition; the success of
the combined company's research and development activities and the speed with
which regulatory authorizations and product rollouts may be achieved; the
ability to successfully negotiate pricing of pharmaceutical products with
managed care groups, health care organizations and government agencies
worldwide; fluctuations in currency exchange rates; the effects of the combined
company's accounting policies and general changes in generally accepted
accounting practices; the combined company's exposure to product liability
lawsuits and contingencies related to actual or alleged environmental
contamination; the combined company's exposure to antitrust lawsuits; the
combined company's success in litigation involving its intellectual property;
social, legal and political developments, especially those relating to health
care reform and product liabilities; general economic and business conditions;
the combined company's ability to attract and retain management and other
employees; the combined company's ability to compensate for anticipated generic
competition for Roundup(R) herbicide after the expiration of its patent in the
U.S.; governmental and public acceptance of agbiotech products, the effect of
seasonal conditions and of current commodity prices on agricultural markets; and
other risk factors detailed in Monsanto's and Pharmacia & Upjohn's respective
Securities and Exchange Commission filings, including their respective Proxy
Statements and Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q.
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