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Champions sys integ EDS Corp.

March 7, 2002

EDS Corp.
Aage Edvardsen
Vice President, Pharma/Biotechnology, EDS Global Industry Group

Bioscience Market Consolidation Will Be Brutal

What is the history of your organization’s involvement in life sciences?
: EDS and its management consultant firm, A.T. Kearney, have developed and delivered business and information solutions to life sciences for a number of years.

A.T. Kearney provided consulting services to this industry segment before becoming part of EDS in 1995. EDS has marketed information services to the life sciences since the mid-’90s, stepping up its focus in the past two years.

What is your vision for the development of the life sciences market?
: What makes the life sciences unique is that these companies deal directly with improving the quality of people’s lives. Discoveries here remove roadblocks and open avenues of treatment to better control—or even eradicate—illness and disease. Add to this the immense game-changing power of information technology to bring to life the benefits of advances in healthcare technology such as genomics and proteomics.

[In the life sciences industry], pharmaceutical companies will look to business partners not only to off-load risk and reduce costs but, even more importantly, to improve their competitive advantages in areas such as drug discovery and marketing. Pharmacos will seek untraditional and new relationships with partners in healthcare-reform initiatives. The so-called disaggregation of the pharmaceutical value chain—so widely discussed in recent years—will speed up. The winnowing process will be brutal.

What organizational assets have you developed to serve this community?
: EDS addresses the specific requirements of the life sciences in a number of ways. Within A.T. Kearney, we have one of the most advanced pharmaceutical practices in the world. The practice works with our clients on strategic business issues such as global franchise strategies or healthcare-reform initiatives. Our consultants also handle operational initiatives.

A.T. Kearney recently was invited by the World Economic Forum to support the Davos Vaccine initiative. This initiative deals with vaccine distribution in southern Africa—one of the most pressing challenges for the industry.

What products and services does your company provide to the life sciences market?
: EDS’s continuum of services spans its five global lines of business:

•           A.T. Kearney’s pharmaceutical and healthcare practice provides strategic consulting services to its life sciences clients;
•           E Solutions is known for its innovative and comprehensive data integration and management solutions;
•           The BPM line of business capabilities includes call center management, credit card processing services, and financial process management;
•           EDS’s newest line of business, PLM, offers comprehensive technologies employed by discrete manufacturing industries; and
•            Information Solutions for the management of the enterprise infrastructure.

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