Company Overview Alpharma is a producer of specialty antibiotics, animal health feed additives for poultry and livestock, and vaccines for farmed fish. The bulk of Alpharma's growth has taken place through acquisition, with a series of European and US based companies having been targeted over the years 1997 to 2001. For fiscal 2002, the company recorded revenues of $1,238 million.

The company has five divisions within its Human Pharmaceutical and Animal Pharmaceutical businesses: International Pharmaceuticals, United States Pharmaceutical, Fine Chemicals, Animal Health and Aquatic Animal Health. Alpharma also maintains two manufacturing plants, a research and development center and an automated central distribution center. Alpharma is headquartered in Fort Lee, New Jersey.

Business Description Alpharma is a multinational pharmaceutical company that develops pharmaceutical products for use in humans and animals. The company has five divisions within its Human Pharmaceutical and Animal Pharmaceutical businesses. These consist of: International Pharmaceuticals, United States Pharmaceutical, Fine Chemicals, Animal Health and Aquatic Animal Health.

Alpharma is focused towards the generics market, with no branded treatments in its marketed and R&D portfolios. The potential acquisition of PurePac, for which Alpharma is bidding $660 million, will provide an already established US portfolio of solid-oral dose generic treatments. Currently, PurePac's portfolio constitutes over 40 generic treatments, with the majority targeting blockbuster treatments, such as Eli Lilly's fluotextine (branded as Prozac).

Additionally, up until now, Alpharma has been primarily involved in specialty pharmaceuticals, so with PurePac derived revenues and the additional delivery platform, Alpharma will be able to prepare for the larger, and commercially more successful blockbuster treatments within key US and European markets.

Alpharma's Human Pharmaceuticals business develops, manufactures and markets an extensive range of pharmaceuticals for human use, including tablets, ointments, creams, liquids, suppositories and injectable dosage forms. In Europe, Alpharma is one of the largest manufacturers and marketers of generic solid dose pharmaceuticals, and in Southeast Asia it has established a growing presence. In the US, where it develops, manufacturs and markets specialty generic prescription and OTC pharmaceuticals, Alpharma has the broadest selection of generic liquid and topical pharmaceuticals in the generics industry.

The US Pharmaceutical Division manufactures generic products, primarily in liquid, cream and ointment solution for inhalation and suppository dosage forms. Each product represents a different chemical entity. It manufactures cough and cold remedies that constitute a significant portion of its liquid pharmaceuticals business.

Alpharma's Fine Chemicals Division develops active pharmaceutical ingredients to the pharmaceutical industry for use in finished-dose products sold on a worldwide basis. The company's fermentation expertise in the production of bulk antibiotics has a direct technological application to the manufacture of products of the company's animal health business. The division produces bacitracin, bacitracin zinc and polymixin and vancomycin, all of which are pharmaceutical grade antibiotics. It also manufactures other antibiotics such as amphotericin B and colistin for use systemically and in specialized topical and surgical human applications.

The Animal Pharmaceutical business comprises of the Animal Health Division and the Aquatic Animal Health Division. The Animal Health Division develops pharmaceutical products for animals raised for commercial food production worldwide. Its principal animal health products include BMD, a bacitracin-based feed additive used to prevent or treat diseases in poultry and swine, and Albac, a bacitracin-based feed additive used to prevent or treat diseases in poultry, swine and calves. Sales are made principally to commercial animal feed manufacturers and integrated swine and poultry producers.

The Aquatic Animal Health Division develops vaccines for use in immunizing farmed fish against disease. It supplies injectable vaccines for farm-raised salmon, and develops vaccines for trout, sea bass, yellowtail and other commercially important farm species. The company sells its products to fish farms, usually under a contract that extends for at least one growing season.

In 2000, Alpharma had more than 84 product Additional New Drug Applications (ANDAs) and 289 marketed products, 65 of which were OTC products.

History Formed in 1975 as A.L. Laboratories, Inc., a wholly owned subsidiary of a Norwegian company, Apothekernes Laboratorium (founded in 1903), the Company went public in 1984. In late 1994, the company joined with the complementary human pharmaceutical and animal health businesses of its parent company and subsequently changed its name to Alpharma, Inc. to operate worldwide under one corporate identity.

Major Products & Services

v Animal Health (AHD) v Aquatic Animal Health (AAHD) v Fine Chemicals (FCD) v International Pharmaceuticals (IPD) v US Pharmaceuticals (USPD)

Name Board Ingrid Wiik Executive Board Einar W Sissener Non Executive Board Glen E Hess Non Executive Board Peter G Tombros Non Executive Board William Jacobs Non Executive Board