†rsrapport Nycomed - Takeda Pharmaceuticals International GmbH

CHIEF EXECUTIVE OFFICER´s REPORTAfter the establishment of the new Nycomed group in May 1999, a comprehensivestrategy and business plan has been established to develop Nycomed to aleading marketing franchise in Northern and Eastern Europe within branded pharmaceuticalsand consumer health products. Strengthening the Nordic presenceis a major objective in this strategy. 2000 was the first full year as a separatecompany, and we have been able to show both good financial results and the abilityto comply with our ambitious strategy.The success storiesIn February, the Diagnostics division was sold to Axis-Shield plc for approximatelyDKK 229 million. Finding a future home for Diagnostics was part of the longtermstrategy and was necessary to allow us to focus fully on our core business.Diagnostics became part of a company that could better enhance and utilise itsfull potential. The released capital was invested into the core pharmaceuticalactivities.The Institutional Business was a small, but historically integrated part ofNycomed in Norway. They were marketing and selling consumer products withinthe segment frozen cakes, bread, pastries etc. to institutions. Obviously also notpart of our core business, the division was sold to the French companyNeuhauser.An important event early in 2000 was our Swedish subsidiary's OTC registrationfor its proton pump inhibitor Pantoloc ® . This allowed us to be ahead of major competitorson the Swedish market with an OTC proton pump inhibitor. A large directto-consumermedia campaign was performed.As part of the strategic focus on the Nordic area, a pan Nordic Marketing andSales organisation was implemented in April. From this date, we have treated theNordic market as one, with pan Nordic managers responsible for branded Rx,OTC and Consumer Health products respectively. This has proven to be valuableand has already shown good results - an agreement with Almirall-ProdesfarmaS.A. (APF) was signed for the marketing rights to the antihistamine productKestine ® in the Nordic markets.–7–