CONFIDENTIAL

Presentation to

Erin K. Bennett

July 10, 2012

Central Laboratory Services

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Growing Challenges in Our Industry

Meeting Enrollment

Milestones

Step 1:

Warmer

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The Traditional Enrollment Model

Perceptions About Central Lab’s Influence:

Sponsor Sponsor

Select Vendors

CRO CRO

Pick Sites

CentralLab

CentralLab

Process Samples

SitesSites

Enroll Patients

Data Quality &Reportable Test

Metrics

Logistics, Stability & Turn-Around Time

Data Delivery

EnrollmentMilestones

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The New Normal: Sites Play Central RollGrowing Influences in the Roll of Sites:

Trial Competition:Choice of Sponsors

Time Pressures

PatientScarcity

Kit Issues Data Quality

CommunicationsSites

High-performingsites are in demand

Their concerns impact trial participation

Responsiveness to site concerns is key to

maximizing enrollment.

Step 2:

Reframe

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Insights Into Investigator Motivation

Recent Market Research Report

►Independent study by LSSG

►Global coverage of investigators

►Focus on site motivations & engagement

►Conclusion: Satisfied Sites Perform Better

Step 3:

Rational Drowning

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Ninety-four percent (94%) of investigators state the central laboratory selected by the Sponsor impacts their (and their staffs’) success, day-to-day activities and willingness to work with a particular sponsor on future studies.

Source: Life Science Strategy Group, LLC

Q. To what degree does the central laboratory that is selected by the Sponsor impact:

IMPACT OF THE CENTRAL LABORATORY ON CLINICAL TRIAL INVESTIGATORS

© 2011    Life Science Strategy Group, LLCUnauthorized photocopying or distribution is prohibited

Mean = 5.2

N=374

Your nursing and support staff's day-to-day activities in support of

the clinical trial?

Your success as a clinical trial investigator?

Your willingness to continue to work with a particular Sponsor on

future clinical trials?

Mean = 5.2

N=374

Mean = 5.0

N=374

94%

The selection of a central laboratory

impacts investigators…

…and their willingness to work with you!

The selection of a central laboratory

impacts investigators…

…and their willingness to work with you!

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In general, Investigators’ most preferred lab provides organized, user-friendly kits and lab instructions, they are familiar with the company and its reputation/reliability, and it has strong customer service and professionalism and timely reporting.

Source: Life Science Strategy Group, LLC

Q. Which central laboratory services provider do you MOST PREFER to work with? Q. What factors contributed to this response?

RATIONALE FOR MOST PREFERRED LAB (unaided)

© 2011    Life Science Strategy Group, LLCUnauthorized photocopying or distribution is prohibited

Familiarity with the company, well-known, reputable and reliable

company

Organized and easy-to-use kits; clear instructions

Increasing # of mentions

“Familiarity and having worked with them before and knowing that they are really good at what they do. I know they are very reliable.”

“The ease and clarity of their lab instructions. The packing supplies and lab kits are self explanatory. Covance has always been very prompt with the lab results.”

“Their results are reliable, they communicate with investigators fast, if abnormal exam, we receive supplies fast and before the expiration date.”

“Accurate, timely reporting and quick turn-around. Easy to access assistance when required.”

N=514

Great customer service and professionalism;

provides assistance in a timely manner

Accurate; timely reporting; quick turn-around

Kits, instructions, reliability, service, and turn-around time are

most important to investigator preferences

Kits, instructions, reliability, service, and turn-around time are

most important to investigator preferences

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More than 85% of investigators agree that they are more satisfied and willing to work with a Sponsor on future trials when they have selected their preferred central laboratory from past clinical trials.

Source: Life Science Strategy Group, LLC

Q. To what degree to you agree or disagree with the following statement? I am more satisfied and willing to work with a pharmaceutical Sponsor on future clinical trials when they have selected my preferred central laboratory to support clinical trials that I have been an investigator for in the past.

IMPACT OF THE CENTRAL LABORATORY ON INVESTIGATOR WILLINGNESS TO WORK WITH A SPONSOR ON FUTURE TRIALS

© 2011    Life Science Strategy Group, LLCUnauthorized photocopying or distribution is prohibited

Mean=4.7

N=370

I am more satisfied and willing to work with a pharmaceutical Sponsor on future clinical trials when they have selected my preferred central laboratory to support clinical trials that I have

been an investigator for in the past.

87%

Satisfied Sites

Satisfied Sites

Higher Engagement with Sponsor

Higher Engagement with Sponsor

Better Enrollment

Performance

Better Enrollment

Performance

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Goals for Investigator Meeting

Answer Questions

Protocol Review and Training

Develop Strong Relationships

GET THEM EXCITED ABOUT YOUR STUDY!!

Step 4:

Emotional Impact

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Optimized Solution Engages Sites

Consistent, easy to use kits delivered on time

Site startup training that minimizes wasted time

Dependable high-quality data

Rapid time to result

Call center at their service

Step 5:

Value Proposition

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Investigator Sites Prefer Covance CLS

I am more satisfied and willing to work with a pharmaceutical Sponsor on future clinical trials when they have selected my preferred central laboratory to support clinical trials that I have been an investigator for in the past.“ ”

Sponsor Choice of Central Lab:• Drives investigator site satisfaction• Impacts site willingness to work on

future studies with that sponsor

Covance:• Most preferred central laboratory

Top Attributes:

Data Source: 2011 Survey by Life Science Strategy Group, LLC

Step 6:

Our Solution

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Customized Training & Support Solutions

Study-Specific Investigator Training Manual►Provides step-by-step instructions for sites

Investigator Training Capabilities►Live presence with site representatives►eLearning solutions now available

Investigator Call Center►Global presence & multiple languages

Kit Inventory Monitoring►Efficiency & dependability

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Kits Designed for Site Efficiency

Global Automated Kit Production

Rigorous Quality Controls

Scalable Capacity

Extensive Automation

Promotes

Efficiency & Consistency

>20,000 kits / day capacity

High-Quality Data Starts with Consistent Kits

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Additional slides can be added if needed