Enabling the Virtual Organization

Steve Phillpott, CIO steve.phillpott@amylin.com

Amylin Pharmaceuticals, Inc. 10 Nov, 2009

Safe Harbor Statement

This presentation contains forward-looking statements about Amylin. Our actual results could differ

materially from those discussed due to a number of factors, including: BYETTA and/or SYMLIN may

be affected by competition, safety or other issues; clinical trials not being completed in a timely

manner or achieving the intended clinical endpoints; NDAs or sNDAs not being submitted in a

timely manner or receiving regulatory approval; expense reductions not being as large as we

expect; our label update not being finalized in a timely manner; or manufacturing and supply

issues. The pace of market acceptance and rate of patient adherence may also affect the potential

for BYETTA and/or SYMLIN. These and other risks and uncertainties are described more fully in

Amylin’s most recently filed Form 10-Q. Amylin disclaims any obligation to update these forward

-looking statements.

3

10%–14% <10%

25%–29% 20%–24%

No Data 15%–19%

≥30%

Diabetes Prevalence

Who is Amylin? Diabetes and Obesity Focused

Obesity Prevalence

Source: CDC BRFSS 2005 BMI 30 kg/m2 (~ 30 lbs. overweight for 5’ 4” person)

5%–6% <5%

>8% 7%–8%

No Data

6%–7%

Obesity now recognized as a disease (CDC & NIH) Over 60 million in the US, and 400 million

worldwide

Over 24M in the U.S with Diabetes and 171M worldwide. These #’s will double by 2030. Approx 3.2M people die each year from Diabetes or related

complications(6 every minute).

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Where is our business model headed >  “New Age of Innovation” as a guide

–  R=G - Resources are Global –  N=1 - Focus on Individual Customer Experience

Implications >  Increase in strategic partnering >  Global reach & integration even if commercially focused on US >  Need for high level of flexibility >  Highly complex business model >  Focus on leveraging external expertise

Virtual Business Model further opened the door for Cloud Computing

Use of the Cloud aligns perfectly with Virtual Business Model - variable cost/pay-per-use model critically important

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Enabling the Virtual Organization Reframing IT Away From Thinking of “The App”

Visibility to Processes and Data across the “organization”

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Amylin Virtual Data Center Delivering Business Value: “The Right Tool For The Right Job”

>  Data Centers (DC) at 100% capacity >  $2M - $5M required for more capacity >  Critical apps such as ERP are on-site

Cloud Computing Platform

Off-site, On-line Storage

SaaS Applications accessed via Net

  Provide pay-per-use computer capacity to business faster and at reduced costs.

 Improved Disaster Recovery (DR) and to defer off-site DR expense

 Applications with minimal Capital, reduced Expense, more Functionality and improved DR

Virtual Data Center

  Build new Applications for the business quicker and at reduced cost

Physical Data Center

Cloud SW Dev Tools and Platforms

San Diego Campus  Two data centers with high-availability failover architecture.

 Leverage Virtual Server Technology to

minimize footprint

  Leverage Private Cloud to optimize internal utilization

Data Center 2 Production Datawarehouse ERP CRM Data Storage

Data Center 1 Production Email Document Mgt Collaboration Data Storage

Private Cloud Computing

Trusted Cloud (validated apps)

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Application Rationalization Driving toward Optimum Strategic Right-Sourcing Alignment

Com

mod

ity

Diff

eren

tiato

r

Internal External

Type

of C

apab

ility

Provider of Capability

Optimum Strategic Right-Sourcing Alignment

Loss of competitive

advantage

Waste of internal resources

Commodity apps such as eMail

Business Intelligence

Alliance Partnership

Other Applications

Business capabilities and processes should fit near this line for optimum strategic fit.

Moving away from the line results in:

•  Internalizing capabilities that are commodities

•  Externalizing differentiators (core competencies)

Both misalignments reduce competitive posture and potentially increased costs.

Optimum alignment (the right tools for the right job) results in:

•  Increased cost agility and •  Sustainable investment in core

competencies

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Successes with the Cloud

Organizational / Stakeholder Education Success – Sell what’s in it for the business

As with “Location” in Real Estate it is “Executive Support” that is critical in making a move to the Cloud

>  Have experienced success in educating stakeholders in the merits of the Cloud >  Amylin business function leaders are eager to see Cloud POCs using their IT assets >  Agreement, Endorsement, Excitement for a new IT technology >  Advertise the Successes.

Financial Success

>  Stakeholders believe in the cost comparison methodology

>  Have developed a highly detailed cost modeling tool comparing on-premise and Cloud costs. Models validated by Finance Department. >  Analysis in each case has shown 30% to 50% cost reductions

Success in Using the Cloud - Applications

>  HR/Performance Management Apps, Time and Attendance Collection, Employee Expense Processing are deployed, several more getting close (DEV/TEST, etc) >  Email hosting – move to SaaS/archiving service currently underway >  2 Large costly, on-premise apps with ~$3m annual cost savings

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Challenges

• People

• Process

•  Technology

•  Focus

Measures Taken

Create Appropriate Environment for Success

•  Establish new processes to provision, monitor and manage cloud platforms

•  Ensure good change control processes are implemented and integrated with different support teams

•  Align IT to provide strategic value to the business. Role more than just supporting the applications.

•  Engage/Educate IT/Customers on Cloud Computing

•  Security: Implemented LDAP to manage cloud.

•  Implemented VPN solution to ensure secure transport.

•  Identify applications fit for cloud computing model

•  Continue to look at applications, infrastructure purchases than can be off-set by leveraging the cloud

•  MUST have solid understanding of internal costs.

Challenges and Lessons Learned

You will find issues with moving to the “cloud”.

Start small and grow maturity

Cloud Requires Strong Integration and Identity Management Strategies

Use of SaaS and Cloud Driving an:   Increased # of user logins and passwords

  Increased workload provisioning for system administrators

Integration   On-Premise to SaaS/Cloud   Between SaaS/Cloud Solutions

Data Management   Extract data from the Cloud   Data Load into Cloud Service

Where to start: Determining What Goes to the Cloud

Review your portfolio of

IT Services and their costs

Virtualized Data Center Rationalize and

prioritize services against appropriate Cloud Use Cases

Cost/Benefit ROI (TCO-Based)

Performance and Architectural Fit

Control / Governance Data mgt, Customization, etc

Security / Risk Mgmt Privacy, Compliance, etc

Not everything is an appropriate “use case” for the cloud delivery model

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Where to Start? How to evolve Amylin’s Cloud Evolution…continues to evolve

Educate

Experiment

Migrate

Outcome Defined

Build Expertise

Implement

Play

Learn

1993-95

IT Supports Business Strategy

Executive Buy-In – CEO, CIO, InfoSec, etc

Reduce Cap-ex, Optimize DC usage

IT Enables New Cloud Capabilities

Kno

wle

dge

•  Team Involvement •  Conferences •  Vendor Briefing

•  Expert Services

•  Best Practices •  Collaborate with

other companies

•  Team Approach •  Hands-on approach •  Understand the value

proposition •  Understand

constraints

•  Migrate dev/test environments

•  Migrate or launch new apps on the cloud

•  Embrace success •  Showcase cost

savings •  Build an enterprise

cloud strategy •  Learn from each

experience •  Expand

accordingly

Awareness Understanding Transition Commitment

•  Indentify app fit for cloud computing

•  Define new processes

Q&A

•  “The Cloud” is here. – Not a matter of if, but when.

•  Not all applications are appropriate for the Cloud.

•  But some applications are VERY appropriate for the Cloud.

•  Our job is to find the balance.