Advair is a registered trademark of glaxo group limited and arava and advair.

New product growth drives commercial strength The success of our new products is providing the fuel for future growth, with new products now representing 27 per cent of total pharmaceutical sales, up 36 per cent in 2002. Sales of Seretide Advari for asthma, now our second largest product, continued to grow impressively, up 96 per cent to 1.6 billion. We recently launched Avandamet for type 2 diabetes and Avodart for benign prostatic hyperplasia, as well as important line extensions of Augmentin and Paxil. During 2003-2004 we look forward to launching 12 new compounds and line extensions. These include Levitra, a new treatment for erectile dysfunction, which we are copromoting with Bayer, and Wellbutrin XL, a new and improved version of our successful anti-depressant. Creating the most productive R&D organisation At the outset of the merger we rethought the way R&D was carried out at GlaxoSmithKline, with the aim of creating the most productive R&D organisation in the industry. We established six therapeutically focused Centres of Excellence for Drug Discovery CEDDs ; . The CEDDs are nimble and entrepreneurial with the range of skills and scale of resources required to drive mid-stage development projects through to their key decision point, proof of concept, before large-scale phase III clinical trials. After two years of activity by the new R&D organisation, we are seeing significant progress as we advance our promising early stage pipeline of pharmaceutical products through clinical development. GlaxoSmithKline has 123 projects in clinical development, of which 61 are new chemical entities in a number of therapy areas, and 23 new vaccines. The number of new chemical entities starting phase II clinical trials has more than doubled since the merger. We are confident that, as these and our phase I pipeline move through development, we will build the best late stage pharmaceutical pipeline in the industry. We plan to provide a detailed update on progress in R&D towards the end of 2003. Success as partner of choice The size and quality of our global R&D organisation, together with the strength of our sales and marketing teams, have enabled GlaxoSmithKline to become the partner of choice in the industry. We have signed an unprecedented 24 major external collaborations in the last two years which has helped to boost our product portfolio. It has also provided some exciting new opportunities in a number of areas of unmet medical need such as erectile dysfunction, obesity and HIV. Patent challenges Over the last year there have been a number of developments involving the patents on some of our key products. In July, in the USA, the first generic version of Augmentin was launched. This followed a ruling by a federal judge that our Augmentin patents were invalid. We are appealing against this decision, in the firm belief that our patents are valid. Meanwhile, we have already offset some of the impact of generics with recent successful launches of new improved versions of Augmentin - the ES and XR formulations. GlaxoSmithKline is also involved in litigation over the patents on Wellbutrin SR and Zyban in the USA. We are awaiting the outcome of our appeal against a judgement last year in favour of Andrx Corporation, which has applied to market generic versions of the products. Consequently, dehydrogenation was temporarily discredited as a method of determining the carbon skeleton. Our results from the dehydrogenation of the triterpenes could be used for the determination of the carbon skeleton only on the assumption, unproved at that time, that the dehydrogenation of the steroids could be explained in a normal manner. The new formula for cholesterol, proposed and conclusively established in 1932-1933 by Bernal, Rosenheim, Wieland and Windaus, brought the desired change in the position. The formation of chrysene became readily understandable on the basis of enlargement of the 5-membered to the 6-membered ring making use of the methyl-group and atarax. Antihistamines $0 chlorpheniramine OTC 1 hydroxyzine 1 loratadine QL-30 & loratadine-D 1 fexofenadine 2 Allegra-D ST 2 Zyrtec & D PA ; Nasal Sprays $0 Nasalcrom [covered OTC] 1 ipratropium 1 fluticasone 2 Astelin 2 Nasonex 2 Nasacort AQ ONLY Bronchodilators 1 albuterol Nebs 1 ipratropium Nebs 1 theophylline Slo-phyllin, Uniphyl generics ; 2 Proventil HFA, Albuterol HFA 2 ProAir HFA, Ventolin HFA 2 Atrovent Inhaler HFA 2 Combivent 2 Spiriva PA ; 2 Maxair Autohaler ONLY 2 Foradil, Serevent Preventative 2 Accolate, Singulair 2 Flovent HFA 2 Intal, Tilade 2 QVAR 2 Asmanex, Azmacort 2 Pulmicort 2 Pulmicort Respul AL or 8yrs 2 Qdvair Macrolides 1 erythromycin 1 azithromycin, clarithromycin 2 Biaxin XL Penicillins 1 penicillin VK 1 amoxicillin 250, 500mg 1 dicloxacillin 1 augmentin, ES 2 Augmentin XR Antifungals 1 nystatin 1 lotrisone 2 Exelderm 1 Monistat-3 vag 200mg supp 1 spectazole 1 fluconazole 2 Lamisil PA ; - Preferred 1 itraconazole PA ; Other 1 metronidazole 1 bactrim SS DS-generics 1 tetracycline, clindamycin 1 doxycycline, minocycline 1 macrobid 2 Bactroban QL-30 grams 2 Zyvox PA ; 2 Tamiflu, Relenza QL 2 Rx year Narcotics Misc. 1 codeine 1 morphine, oxycodone 1 tramadol 1 codeine APAP 1 hydrocodone APAP 1 propoxyphene APAP 1 oxycod 5mg APAP 325 1 ms contin 1 oxycodone ER QL-120 2 Avinza QL-60 2 Kadian QL-60 1 fentanyl patch QL-10 NSAIDS 1 ibuprofen MD, naproxen MD 1 indomethacin & SR 1 piroxicam, sulindac, oxaprozin 1 diclofenac Voltaren ; MD 1 etodolac NOT SR ; 2 Celebrex PA ; 100 mg QL-30 2 Advicor 2 Vytorin QL-30 TS 2 Crestor TS QL-45 2 Lipitor PA ; TS QL-45 Anti-Coagulants Platelets 1 coumadin 1 ticlopidine 1 cilostazol 2 Plavix 2 Lovenox QL-20 syringes 1 hydralazine, minoxidil 1 isordil Tembids - generic 1 nitroglycerine, nitrostat 1 nitroglycerine patches 1 imdur ismo - generic 1 monoket Other 2 Ranexa 2 Tikosyn PA ; 2 Tracleer PA.