Philips Medical Systems

Finding a more precise, patient-friendlier wayto screen for breast cancer

A Philips Schering Alliance in Optical Imaging

Jouko KarvinenCEO

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Summary of Philips Schering Alliance

• Initial focusTo develop optical mammography for

diagnosing breast cancer

• GoalTo jointly research, develop and

commercialize a new technology – Optical Imaging

• 1st development projectCombines Schering’s omocianine (SF-64)optical agent with a Philips optical scanner

• Business modelPartners will share equally all investments plus all revenue in the alliance

• Alliance management A dedicated alliance management team in place

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Medical IT

Patient Monitoringand Cardiac Devices

Document services

Information andMonitoring Solutions

EUR 1.6 bn*

Consultancy

Clinical services

Financing

Asset management

Maintenance& Repair

Customer ServicesEUR 1.5 bn*

Philips Medical Systems at a Glance

Imaging SystemsEUR 2.8 bn*

Nuclear Medicine

CT

MR

PET

Ultrasound

X-Ray

*Total sales in 2004

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Breast Cancer – a Global Overview

*World Health Organization IARC Database**World Health Organization***Estimates based on Parkin et al (2005). Global cancer statistics, 2002. CA: A Cancer Journal for Clinicians

• More than 1 in 9 women to suffer from breast cancer*

• Breast cancer #1 cancer amongst women**

• In 2002, 1,150,000 women diagnosed with breast cancer ***

• 411,000 women died from the disease***

• Breast cancer risk increases with age

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1.1 million cancercases

Chemotherapy& radiotherapy

Surgery

Approx. 7 million biopsies

78 millionwomenscreenedper year

Information &Decision support

Follow-up

Diagnostics

Therapy

Screening

7 million positivediagnoses

Current Breast Cancer Care Cycle

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7 million positivediagnoses

78 millionwomenscreenedper year

Information &Decision support

Potential Breast Cancer Care Cyclefewer biopsies

1.1 million cancercases

Chemotherapy& radiotherapy

Surgery

Follow-up

Diagnostics

Therapy

Screening

optical imagingto reducebiopsies