With the acquisition of the oncology group from Gilead and the assets acquired from British Biotech, OSI has grown into an organization of over 500 people with facilities in New York, Colorado and the United Kingdom. Today, OSI is an independent, fully integrated R&D organization, with an emerging world-class oncology franchise. We now have a comprehensive array of proven talent and infrastructure that gives us the ability to move from concept to product registration, all in-house. In addition to the three clinical stage drug candidates that we received with the Gilead transaction, we also inherited a world- class development capabilities group. Led by Dr. Nicole Onetto, this team is well respected throughout the oncology community as an outstanding development team. The Boulder team is seasoned at every end of the continuum, with capabilities in toxicology, cell biology, cancer pharmacology, pharmacokinetics and regulatory affairs. The addition of these development capabilities complements the strong discovery research base that OSI has built through the years. The British Biotech acquisition equipped OSI with an additional first rate research facility, which will become the home for our UK research efforts in 2002. Furthermore, with this acquisition, we have gained additional key discovery resources in medicinal and analytical chemistry, and in drug metabolism and pharmacokinetics. We have also added a pilot manufacturing plant that has the capacity to scale up the production of small molecules for pre-clinical toxicology testing and early clinical trials. This will be key in further enabling OSI to move more rapidly into clinical development. OSI’s approach is focused on the discovery and development of small molecule pharmaceutical products which, typically, would be taken orally as a pill, capsule or suspension. Our drug discovery platform constitutes an integrated set of technologies and capabilities covering every major aspect of pre-clinical and clinical development. Model assumes current business operations, Tarceva™ (OSI-774) and OSI-211 approvals in 2004 and an average of analyst projections of EGFR market in 2006. Today our core discovery technologies and capabilities include: •  gene transcription, signal transduction, protein kinases and other assay systems •  automated high-throughput screening •  a library of over 350,000 proprietary small molecule compounds and over 125,000 natural product extracts •  medicinal and automated combinatorial chemistry •  in vivo pharmacology, pharmacokinetics and pharmaceutical development capabilities •  a top quality clinical research and safety team, and a clinical project management and regulatory affairs unit Looking Forward OSI is pursuing a vision of the future of cancer treatment—one in which patients have safer and more effective treatment options—one in which cancer is successfully managed as a chronic disease rather than a life-threatening illness—one in which there is hope for the development of preventive agents. To that end, we intend to continue to build a successful biopharmaceutical company that will be a global leader in the fight against cancer and other deadly diseases. We are able to pursue this vision from a solid financial base. We move forward with approximately $400 million in cash reserves as we enter 2002 and the belief that a successful approval and launch of Tarceva™ (OSI-774) and OSI-211 in 2004 will result in a strongly profitable organization . We are proud of all that we have accomplished in 2001 and enter 2002 with optimism and confidence. Back to Top “OSI is now a major player in oncology, equipped with world-class development capabilities and a solid clinical pipeline unparalleled in other companies of this size. With the acquisition of Gilead’s oncology program, OSI has acquired one of the most respected international oncology drug development groups in the industry.” Eric Rowinsky, M.D. Institute for Drug Development Director of Clinical Research