AHP's Vaccines and Infectious Diseases franchises share a common mission: to reduce the number of serious illnesses and deaths from bacterial and viral infections and to help overcome the growing problem of bacterial resistance to existing treatments.

Leading this fight is Prevnar, a new vaccine for invasive pneumo-coccal disease, the major cause of bacteremia, meningitis and pneumonia in infants and young children. Approved and launched in the United States during the first quarter of 2000, Prevnar achieved sales of $461 million for the year. Prevnar received recommendations for use- both from the American Academy of Pediatrics and from the Centers for Disease Control and Prevention's Advisory Committee on Immunization Practices -for all children up to two years of age as well as for high-risk children between the ages of two and five. Marketed as Prevenar out-side the United States, the vaccine was approved in the European Union in February 2001. During 2000, AHP filed a supplemental application for Prevnar in the United States for the prevention of pneumococcal otitis media, or middle ear infection.

Another new vaccine, Meningitec, was approved in October 1999 in the United Kingdom for the prevention of meningococcal Group C disease. Meningitec played the central role in a 90 percent reduction in reported cases of meningococcal Group C disease in the age group at highest risk in the United Kingdom. AHP received the prestigious Prix Galien award in the United Kingdom for innovation in the health care industry, recognizing the public health benefit brought by the introduction of Meningitec. Sales of Meningitec in 2000 exceeded $322 million.

FluMist, a unique live, attenuated influenza vaccine, administered in the form of a nasal spray, was accepted for review by the FDA. This easy-to-administer formulation, licensed from Aviron, is expected to increase the number of people - especially children- taking advantage of protection against the flu.

AHP's Infectious Diseases franchise also grew significantly in 2000. Sales of our leading product, Zosyn, marketed as Tazocin outside the United States, increased by more than 16 percent to $367 million for the year. Zosyn is used to treat serious diseases, including intra-abdominal infection and community-acquired and hospital-acquired pneumonia.

Our research in this franchise took significant steps forward in 2000. GAR-936, a novel glycylcy-cline antibiotic, entered Phase II clinical trials. Additionally, in the rapidly growing area of anti-virals, HCI-436-developed with ViroPharma Incorporated - began Phase II trials as a potential first-in-class treatment for hepatitis C.