DuPont 2006 Annual Report Download - page 37

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Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations, continued
expected to remain at current levels. The residential construction market in North America is expected to be
softer than 2006 and it is anticipated that the electrical and electronics markets will continue to improve.
Performance Materials expects to realize continued revenue growth in 2007. PTOI is expected to increase,
benefiting from higher revenue, price increases, improved fixed cost performance and customer-driven
innovations for products and processes. The level of earnings improvements in 2007 will depend on offsetting
the continued high intermediate feedstock costs with price increases and further productivity gains.
PHARMACEUTICALS
Segment Sales
(Dollars in billions)
PTOI
(Dollars in millions)
2006 $— $819
2005 — 751
2004 — 681
On October 1, 2001, DuPont Pharmaceuticals was sold to the Bristol-Myers Squibb Company. DuPont retained
its interest in Cozaar»(losartan potassium) and Hyzaar»(losartan potassium with hydrochlorothiazide). These
drugs were discovered by DuPont and developed in collaboration with Merck and are used in the treatment of
hypertension. The U.S. patents covering the compounds, pharmaceutical formulation and use for the treatment
of hypertension, including approval for pediatric use, will expire in 2010. DuPont has exclusively licensed
worldwide marketing and manufacturing rights for Cozaar»and Hyzaar»to Merck. Pharmaceuticals receives
royalties and net proceeds as outlined in these licenses and related agreements. Merck is responsible for
manufacturing, marketing and selling Cozaar»and Hyzaar».
In September 2002, the U.S. Food & Drug Administration (FDA) approved Cozaar»to reduce the rate of
progression of nephropathy (kidney disease) in Type 2 diabetic patients with hypertension and nephropathy
(hereafter referred to as the RENAAL study). Through 2005, approvals based on the RENAAL study have
been granted in 60 countries, with further approvals pending.
The Losartan Intervention For Endpoint reduction in hypertension study (LIFE) results were reported and
published in March 2002 at the annual meeting of the American College of Cardiology. The study found that
use of Cozaar»significantly reduced the combined risk of cardiovascular death, heart attack and stroke in
patients with hypertension and left ventricular hypertrophy (LVH) compared to the beta-blocker atenolol. In
March 2003, the FDA approved Cozaar»as the first and only hypertensive medicine to reduce the risk of
stroke in patients with hypertension and LVH. In total, 64 countries have granted regulatory licenses to
Cozaar»based on the LIFE study. In 2005, the FDA approved Hyzaar»to reduce the risk of stroke based on
the LIFE study.
The FDA granted a new indication for Hyzaar»in 2004 for use in patients with severe hypertension. This
fixed dose combination is not indicated for initial therapy of hypertension, except when the hypertension is
severe enough that the value of achieving prompt blood pressure control exceeds the risk of initiating
combination therapy in these patients. In November 2006, Canada granted a new indication for Hyzaar»use in
severe hypertension. The indication is identical to that in the U.S.
In October 2005, Hyzaar»100-12.5 mg tablets were introduced offering a new treatment alternative for
doctors with patients whose blood pressure is not adequately controlled by Cozaar»100 mg alone. A total of
13 countries have granted approval and more are pending.
Preminent», trademark for losartan 50mg and hydrochlorothiazide 12.5mg in Japan, received marketing
authorization in October of 2006. Preminent»is the first AIIA combination product to be commercialized in
Japan.
37
Part II