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NAME AND TITLE: Glenn M. Engelmann, vice president, general counsel and secretary. AGE: 46 THE COMPANY: AstraZeneca Pharmaceuticals in Wilmington, Del., is the U.S. operation of the giant Anglo-Swedish pharmaceutical company, AstraZeneca PLC, headquartered in London. The world’s fourth-largest pharmaceutical business, AstraZeneca was created in 1999 with the $37 billion merger of Zeneca Inc., part of the London-based Zeneca Group, with Astra USA Inc., the American unit of the Swedish Astra A.B. The company employs more than 50,000 people, 10,000 of whom are in the United States. The parent company had sales of more than $16.4 billion in 2001, with the U.S. operation contributing more than half to that number. HIGH-STAKES LITIGATION: In 2001, more than a third of the entire company’s revenue came from one of the world’s best-selling drugs, Prilosec, a medicine used to treat heartburn. AstraZeneca is now fighting a high-stakes patent infringement battle over Prilosec in federal court in New York against four generic makers of omeprazole, including Andrx Group and Dr. Reddy’s Laboratories Ltd. The non-jury trial began in December. AstraZeneca is maintaining that its patents are still valid on how the purple pill is formulated. The trial is expected to continue into May and a decision is expected this summer. The company stands to lose billions if it does not prevail. Currently, AstraZeneca is fighting nearly six dozen patent cases around the world related to Prilosec. Recently, the company lost a patent battle involving omeprazole in the United Kingdom, but won an infringement case in Norway. Engelmann said AstraZeneca is confident it will win the American case. DEPARTMENT: The U.S. legal department has approximately 65 people, including roughly 30 lawyers and 13 paralegals. Because the pharmaceutical industry is highly complex, Engelmann said, he organized the department to support the individual businesses. When he first joined the predecessor to AstraZeneca, the department was organized along subject matter, as opposed to business functions. Senior lawyers in Engelmann’s department sit on the leadership teams for the therapeutic areas, which include central nervous system, oncology, cardiovascular, gastrointestinal, pain, anesthesia and infection. Lawyers work “shoulder to shoulder” with the people in those areas. “It gives them a greater understanding of the commercial issues and allows them to spot legal issues,” Engelmann said. However, the lawyers report to Engelmann to assure professional independence, he said. Some of the work handled by the department includes the drafting and reviewing of licensing agreements between AstraZeneca and other pharmaceutical or biotechnology companies. The department sets up agreements related to research collaboration and clinical studies. The department reviews all promotional material. LITIGATION: AstraZeneca has much more than just patent litigation on its plate. It includes antitrust, environmental and insurance cases. “When a company is doing well it tends to attract litigation,” Engelmann said. Engelmann was directly involved earlier this year in a high-profile trial that centered on the dismissal in 1996 of Astra’s former chief executive, Lars Bildman. After Astra was hit with several lawsuits alleging sexual harassment, the company launched an internal investigation. It discovered Bildman used company funds to build a house and hire female escorts. The board voted to remove Bildman and filed suit against him in 1998 to recover its money. Bildman, who served 18 months in jail for filing false tax returns, then sued the company for wrongful termination, defamation and emotional distress. At the end of the nearly seven-week trial, the jury found Bildman misappropriated company funds, had engaged in sexual harassment and defrauded the company, according to AstraZeneca’s attorney, Jeffrey S. Robbins of Boston’s Mintz, Levin, Cohn, Ferris, Glovsky and Popeo. The jury awarded AstraZeneca $850,000. Antitrust matters are a large part of the department’s work. A year ago, a Boston consumer coalition, Community Catalyst, filed class actions in several states against AstraZeneca and Barr Laboratories for allegedly fixing the price on tamoxifen, a drug used to treat breast cancer. AstraZeneca’s tamoxifen drug is Nolvadex. In 1992, Barr challenged AstraZeneca’s patent, but later settled with the company. AstraZeneca gave Barr the exclusive rights to distribute a generic version of tamoxifen made by the Wilmington company. Because Barr’s generic drug is not substantially discounted, plaintiffs allege the two companies conspired to keep the price high. The case is ongoing. In January, the company was sued in U.S. District Court in Delaware for allegedly artificially inflating the price of its prostate cancer medicine, Zoladex. In the proposed class action, the plaintiff alleges the company allowed health care providers to buy Zoladex below wholesale so they could profit from Medicare because reimbursements are based on wholesale prices. The lawsuit, which alleges fraud and racketeering, also claims doctors were given free samples and told they could charge patients for them. One of the company’s environmental matters dates back to when a company predecessor, ICI Americas Inc., acquired Stauffer Chemical Co. in 1987. AstraZeneca inherited that litigation, some of which involves battles with insurance companies over how much the insurer is obligated to pay to clean up hazardous sites. There are also some tort matters involving people who say they were exposed to toxic materials. ENRON FALLOUT: “We’ve had an opportunity to engage in creative financing and we’ve always shied away from it,” said Engelmann, adding, “If there’s been a positive, it would be that people are generally more attuned to all kinds of compliance issues.” AstraZeneca uses KPMG for its accounting work. OUTSIDE COUNSEL: Aside from Mintz Levin handling the Bildman case, New York’s Davis Polk & Wardwell oversees corporate and antitrust matters. Washington, D.C.’s Covington & Burling takes care of Federal Drug Administration and licensing work. Morgan, Lewis & Bockius handles human resources and litigation. New York’s Fitzpatrick, Cella, Harper & Scinto is counsel in the Prilosec patent case. Chicago’s Sidley Austin Brown & Wood handles products liability. ROUTE TO THE TOP: In 1977, Engelmann graduated from the State University of New York at Binghamton with a degree in political science. He went on to the University of Chicago Law School, where he received his law degree in 1980. Engelmann worked in the office of hearings and appeals at the U.S. Department of Energy after graduating from law school and then joined the Washington, D.C., firm of Seifman, Semo, Slevin & Marcus. He became a shareholder at the firm in 1985. In 1986, he joined ICI Americas Inc., the predecessor to Zeneca, providing legal advice for the pharmaceuticals business. From 1990 to 1991, he was counsel to the advanced materials business and then was appointed group counsel for Zeneca Pharmaceuticals. He was named vice president, general counsel and secretary to Zeneca Inc. in 1993. After the merger in 1999, Engelmann was appointed general counsel for AstraZeneca’s operations in the United States. FAMILY: Engelmann and his wife, Michelle, have three children, ages 11, 14 and 17, and live in West Chester, Pa. COMMUNITY SERVICE: Engelmann is chairman of the board of Family and Workplace Connection, a nonprofit organization based in Wilmington that provides services and programs to help people manage work and family. He is president of Jewish Family Services of Delaware, a full-service social service agency. LAST BOOK READ: “Jack: Straight from the Gut,” by Jack Welch and John A. Byrne.

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