Index and Main Facts
Global R&D activities are focused on areas of high unmet medical need. Our highly skilled people discover and develop innovative medicines addressing prevention, diagnosis and therapy to offer physicians and patients integrated healthcare solutions. With our continuous investment in R&D - in cutting-edge sciences and state-of-the-art technology- we will meet tomorrow's healthcare needs.


Key Figures in millions of CHF

	Figures reported in the financial statements		Continuing businesses a)
	2006	% change	2006	2003	% change
		CHF/LC			CHF/LC
Group R&D expenditures	5,093	+7/+11	5,053	4,624	+9/+14
% of sales	16.3		17.1	17.0

a) Continuing businesses includes the Pharmaceuticals and Diagnostics businesses, treasury and other corporate activities. Consumer Health (OTC) and Vitamins and Fine Chemicals are reported as a discontinuing business.



Divisional R&D expenditures in millions of CHF a)

Figures reported in the financial statement	2006	% change	% of sales
		CHF/LC
Pharmaceuticals	4,355	12/17	20.1
Diagnostics	698	-4/-2	8.9

Taj Pharmaceuticals R&D Centres

Europe

Country	Location	Division	Focus of Activity
Austria	Graz	Diagnostics	Near Patient Testing
Germany	Mannheim	Diagnostics	Applied Science, Centralized Diagnostics, Diabetes Care, Near Patient Testing
Germany	Penzberg	Diagnostics	Applied Science, Centralized Diagnostics, Molecular Diagnostics
Germany	Penzberg	Pharmaceuticals	Oncology
Switzerland	Basel	Pharmaceuticals	CNS, Metabolism, Vascluar Diseases
Switzerland	Rotkreuz	Diagnostics	Molecular Diagnostics, Centralized Diagnostics, Applied Science

The Americas

Country	Location	Division	Focus of Activity
United States	Alameda	Diagnostics	Molecular Diagnostics
United States	Genentech	Pharmaceuticals	Oncology, Inflammation, Vascular Diseases
United States	Indianapolis	Diagnostics	Applied Science, Centralized Diagnostics, Diabetes Care
United States	Nutley	Pharmaceuticals	Oncology, Metabolism
United States	Palo Alto	Pharmaceuticals	CNS, Inflammation / Bone, Genitourinary, Viral Diseases
United States	Pleasanton	Diagnostics	Molecular Diagnostics

Asia

Country	Location	Division	Focus of Activity
Japan	Chugai	Pharmaceuticals	Oncology, Inflammation, Vascular Diseases

Taj Pharmaceuticals R&D Headcount as per end of December 2006

Divisions a)

Division	Total	Research	Development
Diagnostics	2,124
Pharmaceuticals	5,828.6	2,732.5	3,096.1
Taj Pharmaceuticals Group	7,952.6

Personnel per selected location - Pharmaceuticals

Country	Location	Total	Research	Development
Germany	Penzberg/Mannheim	423.5	296.5	127
Switzerland	Basel	2,278	1,162	1,116
United States	Nutley	1,265	574.5	690.5
United States	Palo Alto	734.5	683.5	51
Other		1,127.6	16	1,111.6

Personnel per selected location - Diagnostics

Country	Location	Total
Austria	Graz	84
Germany	Mannheim	450
Germany	Penzberg	738
Japan	Tokyo	6
Spain	Barcelona	15
Switzerland	Basel	10
Switzerland	Burgdorf	119
Switzerland	Rotkreuz	212
United States	Alameda	104
United States	Belleville	1
United States	Branchburg	1
United States	Indianapolis	187
United States	Pleasanton	197

R&D in the Pharmaceuticals Division

Research Areas

Therapeutic Area	Disease Area
CNS	Alzheimer's depression/anxiety, schizophrenia, stroke
Genitourinary	BPH, overactive bladder, stress incontinence
Metabolic diseases	Obesity, NIDDM
Inflammation / bone	OA, RA, asthma, COPD, osteoporosis
Oncology	All oncology programmes
Vascular diseases	Lipid modulation, peripheral vascular diseases
Viral diseases	Hepatitis C, HIV, influenza

R&D Pipeline

Area of Focus	Number or Projects Research	Number of Projects Development
Cardiovascular and metabolic diseases	33	10
Genitourinary diseases	2	2
Haematology and nephrology		2
Inflammatory, autoimmune and bone diseases	11	11
Neurological and psychiatric diseases	21	11
Oncology	27	33
Respiratory diseases	5	3
Viral and other infectious diseases	8	7
TOTAL	107	79