CIBC World Markets 18th Annual Healthcare Conference Dan Suesskind George S' Barrett Teva Pharmaceut

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CIBC World Markets 18th Annual Healthcare
ConferenceDan SuesskindGeorge S. BarrettTeva
Pharmaceutical Industries Ltd.November 7, 2007
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Forward-Looking Statements
TODAYS PRESENTATION CONTAINS FORWARD LOOKING
STATEMENTS WHICH EXPRESS THE CURRENT BELIEFS AND
EXPECTATIONS OF MANAGEMENT. SUCH STATEMENTS ARE
BASED ON CURRENT EXPECTATIONS AND INVOLVE A
NUMBER OF KNOWN AND UNKNOWN RISKS AND
UNCERTAINTIES THAT COULD CAUSE TEVAS FUTURE
RESULTS, PERFORMANCE OR ACHIEVEMENTS TO DIFFER
SIGNIFICANTLY FROM THE RESULTS, PERFORMANCE OR
ACHIEVEMENTS EXPRESSED OR IMPLIED BY SUCH
FORWARD-LOOKING STATEMENTS. IMPORTANT FACTORS
THAT COULD CAUSE OR CONTRIBUTE TO SUCH
DIFFERENCES INCLUDE TEVAS ABILITY TO
SUCCESSFULLY DEVELOP AND COMMERCIALIZE ADDITIONAL
PHARMACEUTICAL PRODUCTS, THE INTRODUCTION OF
COMPETITIVE GENERIC PRODUCTS, THE IMPACT OF
COMPETITION FROM BRAND-NAME COMPANIES THAT SELL
THEIR OWN GENERIC PRODUCTS OR SUCCESSFULLY EXTEND
THE EXLUSIVITY PERIOD OF THEIR BRANDED PRODUCT,
TEVAS ABILITY TO RAPIDLY INTEGRATE THE
OPERATIONS OF ACQUIRED BUSINESSES, THE
AVAILABILITY OF PRODUCT LIABILITY COVEREGE IN THE
CURRENT INSURANCE MARKET, THE IMPACT OF
PHARMACEUTICAL INDUSTRY REGULATION AND PENDING
LEGISLATION THAT COULD AFFECT THE PHARMACEUTICAL
INDUSTRY, THE DIFFICULTY OF PREDICTING U.S. FOOD
AND DRUGS ADMINISTRATION (FDA) AND OTHER
REGULATORY AUTHORITY APPROVALS, THE REGULATORY
ENVIRONMENT AND CHANGES IN THE HEALTH POLICIES
AND STRUCTURE OF VARIOUS COUNTRIES, ACCEPTANCE
AND DEMAND FOR NEW PHARMACEUTICAL PRODUCTS AND
NEW THERAPIES, UNCERTAINTIES REGARDING MARKET
ACCEPTANCE OF INNOVATIVE PRODUCTS NEWLY LAUNCHED,
CURRENTLY BEING SOLD OR IN DEVELOPMENT, THE
IMPACT OF RESTRUCTURING OF CLIENTS, RELIANCE ON
STRATEGIC ALLIANCES, EXPOSURE TO PRODUCT
LIABILITY CLAIMS, DEPENDENCE ON PATENT AND OTHER
PROTECTIONS FOR INNOVATIVE PRODUCTS, FLUCTUATIONS
IN CURRENCY, EXCHANGE AND INTEREST RATES,
OPERATING RESULTS, OTHER FACTORS THAT ARE
DISCUSSED IN TEVAS ANNUAL REPORT ON FORM 20-F
AND ITS OTHER FILINGS WITH THE U.S. SECURITIES
AND EXCHANGE COMMISSION (SEC). FORWARD LOOKING
STATEMENTS SPEAK ONLY AS OF THE DATE ON WHICH
THEY ARE MADE, AND THE COMPANY UNDERTAKES NO
OBLIGATION TO UPDATE PUBLICLY OR REVISE ANY
FORWARD LOOKING STATEMENTS, WHETHER AS A RESULT
OF NEW INFORMATION, FUTURE DEVELOPMENTS OR
OTHERWISE.
Makep 4,5,9
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Overview

• Vertically-integrated global pharmaceutical
  company founded in 1901
• Three main business segments
• Finished Dosage Generic Pharmaceuticals
• Active Pharmaceutical Ingredients (API)
• Specialty Branded Pharmaceuticals
• Presence in 60 countries approximately 26,000
  employees
• Rank among the top 20 in revenues among all
  pharmaceutical companies

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Financial Results



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Sales By Region
1-9/07 6,832 Million
1-9/06 6,131 Million
North America, 58
North America, 61
Western Europe and Hungary TSP as of
North America
Makep 5,4,3,7,8,9
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Tevas Core Strengths in Generics
RD Portfolio
Managing the Environment
Technology Development
Oral and Semi solids Injectables Modified
Release Inhalation
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Q3/2007 North America Pharmaceutical Sales
( Millions)
CAGR 31
Makep 30
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Absolute growth of generics takes off in the last
four years brands decline
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Generic TRx continue to gain traction
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Top U.S. Pharmaceutical Companies
Generic companies only
All pharmaceutical companies
(In thousands)
Total Rxs
Total Rxs
1 Teva USA 431,054 2 Mylan 276,753
3 Watson 223,671 4 Sandoz 192,609
5 Barr 137,581 6 Mallinckrodt 97,291
7 Actavis 84,689 8 Qualitest 81,167
9 Greenstone 77,598 10 Par 71,370
1 Teva USA 443,824 2 Mylan 278,627
3 Pfizer 269,682 4 Novartis 267,918
5 Watson 223,674 6 Barr 137,671 7 Merck
120,555 8 AstraZeneca 111,617
9 GlaxoSmithKline 109,903 10 Mallinckrodt 97,291

Increase over MAT 09/2006
Source IMS Health September 2007 NPA
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Generic Industry Consolidation
Top 4 have 55 market share combined
IMS TRx MAT Jun-97 (Top 4 35)
IMS TRx MAT Jun-07 (Top 4 55)
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Competitive Generic TRX share
¹ Includes Genpharm
Week of October 12, 2007
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U.S. Generic Industrys Largest Pipeline

• 151 ANDAs over 88 billion in total brand
  sales
• 82 Paragraph IV Filings
• 43 First-to-File over 38 billion in total
  brand sales

As of October 26, 2007
Makep 4,3,5
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Q3/2007 Europe Pharmaceutical Sales
( Millions)
Up 22
CAGR 33
Western Europe and Hungary
Makep 31
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Western Europe is emerging as a pharmacy-focused
region, facilitating higher penetration
Pharmacist / Payer influence
UK
Substitution Gx model
Netherlands
France
Germany
Italy
Spain
Market discontinuities
Physicianinfluence
Hungary
Generic penetration
Source Teva Europe
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Progress implementation - room for generic
penetration
Source Generics bulletin June 2007 EGA view of
implementation Simoens Report Recommendations
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Q3/2007 International (ROW) Pharmaceutical
Sales
( Millions)
Up 12
CAGR 42
Makep 37
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TAPI Teva Active Pharmaceutical Ingredients

• Tevas API division is the Industry leader for
  active pharmaceutical ingredients (API) for
  generics
• Manufactures and sells approx. 250 products to
  Teva's finished pharmaceutical product businesses
  and to third parties
• Be First Stay Last
• Provides Teva with strategic advantages through
  vertical integration
• A major source for Tevas RD and finished
  products
• Provides Teva a strong competitive advantage
  capital expenditures, strong IP and leading
  worldwide expertise make Tevas API capabilities
  hard to replicate
• 18 production sites located in Israel, U.S.,
  Mexico, Switzerland, Hungary, Italy and India

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Teva API Sales
( Millions)
Up 24
1,327
1,067
940
Up 12
654
Up 36
321
Up 2
326
Down 8
Up 9
Makep 1,2,3,4,5,6,7,10,9, 32
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Q3/2007 Copaxone In-Market Global Sales
( Millions)
Up 20
US Non US
Up 24
1,414
1,176
441
26
936
354
25
720
17
24
Q
3
/
06
Q3/07
Makep 5,4,9,20,1,2,3
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Copaxone 40 mg

• Copaxone, at a 40 mg/day dose, has the potential
  to provide better efficacy compared to all
  approved first-line treatments
• Results of 9-month Phase II study, which compared
  to Copaxone 20 mg/day
• Patients taking the higher dose showed a 38
  greater reduction in inflammatory disease
  activity as measured by MRI
• Reduced mean on-trial relapse rate of 77 vs. 62
• Phase III study (FORTE) initiated in July 2006

Next Milestone Submission To FDA H2 /2008
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Laquinimod

• A novel, oral product for relapsing MS
• Licensed from Swedens Active Biotech
• Positive results of Phase IIb study
• Demonstrated that an oral 0.6 mg dose of
  laquinimod given daily significantly reduced MRI
  disease activity by 38 percent in RRMS patients
• Favorable trend towards reducing annual relapse
  rates, the number of relapse-free patients and
  time to first relapse compared with placebo
• Confirmed favorable safety profile

Next Milestone Initiation of Phase III studies
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Azilect for Parkinsons

• First once-daily medication for PD Only MAO-B
  inhibitor with an indication for both monotherapy
  and adjunct therapy
• Launched in 28 countries since initial launch in
  Israel in early 2005
• Patients are responding positively to the
  convenient once daily dosing and the good
  tolerability
• Continue to study AZILECT as a symptomatic
  therapy (LEGATO) and as a possible disease
  modifying therapy (ADAGIO) study

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SABA TRx Weekly Market (Share)
IMS NPA 10/26/07
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SABA-HFA TRx Market (Share)
IMS NPA 10/26/07
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Cash Flow Highlights




Actually distributed Net cash provided
by operating activities less purchase of
property, plant and equipment (net), and
dividends paid
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Financial Strength
Includes both converts of 1.4 bn and
straight debt of 1.5 mn issued on Q1/06
DEBT/(DebtEquity)
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Consolidated Statement of Income



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Sales (in Millions)
CAGR 37
11
Makep 1,2,3,4,5,6,7,10,9, 32
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RD (in Millions)
CAGR 32
15
Makep 1,2,3,4,5,6,7,10,9, 32
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Dividends (in Millions)
CAGR 41
29
Makep 1,2,3,4,5,6,7,10,9, 32
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NASDAQ Top 20 Companies
As of Nov. 1, 2007

Share Price 44.54
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Driving Growth, Expanding Leadership
Tevas growth is fueled by

• Increasing demand globally for generics
• Expanding global market reach
• The generic industrys leading product offering
• Unmatched vertical integration
• The industrys most robust generic pipeline
• Growing specialty pharmaceutical business /
  pipeline
• Promising Biogenerics opportunities

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CIBC World Markets 18th Annual Healthcare
ConferenceDan SuesskindGeorge S. BarrettTeva
Pharmaceutical Industries Ltd.November 7, 2007