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When we look at performance in 2011, so far these are the nine months data obviously. You see that the overall healthcare is at €12.5 billion which is a growth of 2% in local currencies mainly driven by a good growth of the consumer health business which is OTC, Animal Health and Medical Care together which have been growing by 6%.When you look at Pharma, which is plus 1%. It’s more or less flat as compared to 2010. However, when you look at profit earnings, especially adjusted EBITDA, here the growth rates look significantly better. I mean Consumer Health is growing at 6% which is at the same rate than sales are growing. But Pharma did grow EBITDA at 9% which led to a significant margin improvement of around 2.7 percentage points in the first nine months of 2011. So overall for 2011, I would say that we have made significant progress in those four areas which are important areas for us. Obviously pipeline, most important for a pharma company, we have made good significant progress with our late-stage products, actually better progress than what we would have expected. All of the projects did keep the timelines and some of them actually could be concluded or stopped early based on good results. I will come to that in a moment. In addition to that we kept on building our early and our mid-stage pipeline which is not so visible at the moment, but I believe will evolve over the next two to three years. We made significant improvement in terms of our efficiency effort. We announced at the end of 2010 that we would start a savings and productivity improvement program. We are absolutely on track with that program. We had announced at that time that we would target around $430 million in annual savings, not all of that would drop to the bottom line. It’s also what we said. We will need significant parts of those savings to be reinvested in launches and in the pipeline. Nevertheless, as I mentioned before we could already this year improve our pharma margins significantly.
Third point, emerging markets for us, a very important aspect of our business. I will come to that in a moment. We continue to see good growth double-digit also in the first nine months and we keep on expanding our especially commercial presence in marketing and sales organizations.Last, but not least Consumer Health, another strong year in 2011, the first nine months we could see 6% growth. Here we have now in the meantime 13 brands that have all sales of more than 100 million which is considered to be a significant brand in Consumer Health. Now of course there are challenges and I have summarized those that are most important for us in 2011 and to some extent also 2012 on this chart. On the left hand, obvious issues, generic competition and healthcare reforms, everybody is dealing with that. For us generic competition has some specific aspects. As some of you know, we lost patent on YAZ, our oral contraception franchise in the US in 2010 and we had significant hit now on top and bottom line in 2011. We lost during 2011, the patents on YAZ and Yasmin for Europe and we will see significant impact in 2012. Now, having said that this is the only franchise which has new exposure in terms of generic competition. Everything else is going to be stable and we don’t expect any further generic competition to our franchises going forward in the next few years. Overall for the women’s health franchise, I would say that we will see in 2011 that is according to our projections which is a single-digit decline. We believe that going forward in the US the business should be stable in 2012. We will see a hit in Europe as we indicated earlier, but we also see a significant growth of that franchise still in other parts of the world especially in Latin America and in Asia. Read the rest of this transcript for free on seekingalpha.com