Research and Development

Our research and development team has significant experience and proven capabilities in specialty chemistry, pharmaceutical development and clinical development. We focus our research and development efforts primarily on developing new products that target therapeutic areas with established regulatory guidance, making proprietary improvements to our existing products and developing new and enhanced dosage forms. Improvements to existing products generally involve less development and regulatory risk and shorter time lines from concept to market. Through this focused approach to research and development, we seek to enhance the value of our franchises by investing in relatively low-risk projects. In 2005, we invested $58.6 million in research and development activities.

Since March 2003, our internal development efforts have yielded the following six FDA New Drug Application approvals:

• Femring® (vaginal ring hormone therapy)
• Ovcon® 35 Fe (chewable oral contraceptive)
• Femtrace® (oral hormone therapy)
• Doryx® delayed-release tablets (oral adjunctive therapy for acne)
• low dose femhrt® (oral hormone therapy)
• Loestrin® 24 Fe (oral contraceptive)