Our approach to R&D involves not only the development of new diagnostics, but also investment in managing the life cycle of our existing marketed products. Our research projects are focused on creating new products, which will work at the molecular level to diagnose both the first stages of disease initiation and its subsequent progression. Increasingly this will require insight into the genetic basis of disease.

We will continue to enter into collaborations with companies that can provide technologies and targets that will enable us to lead in the new world of molecular diagnostics.

Cardiovascular disease
Our portfolio of medical diagnostic products includes those with very specific disease targets and others with a broader diagnostic capability. We are increasingly focusing on specific disease areas to drive growth. Many of our products are used in the diagnosis of cardiovascular disease. Sales of Omnipaque, the world’s best selling non-ionic X-ray diagnostic product, increased by four per cent to £183 million.

Coronary artery disease is the single most important disease in terms of both mortality and morbidity. Each year in the US six million patients arrive at hospitals with chest pain. While two and a half million of them are admitted to cardiac care units, only 10-15 per cent of these actually have a serious heart condition. Identification of these individuals with acute myocardial infarction is of vital importance as ischaemic heart disease, the risk of which increases with age, is responsible for one in six deaths in the US. Products such as Myoview, that can quickly and accurately demonstrate if a patient has ischaemic heart disease, or Visipaque™, that can diagnose coronary artery stenosis, are thus of great value.

Global sales of Myoview continued the significant growth seen in the previous year, up 30 per cent to £80 million. Demonstrating the functional significance of anatomical abnormalities, this cost-effective cardiac diagnostic product enables improved patient management and reduces morbidity.

Visipaque sales increased by 18 per cent to £59 million. The unparalleled comfort and safety afforded to the patient provides significant economic and diagnostic benefits for the physician. Clinical data published during the year demonstrated the lower incidence of serious complications with non-ionic Visipaque over ionic products in patients at high risk. Visipaque was also launched by Daiichi in Japan in November.

In September, we entered the cardiovascular ultrasound market through the co-marketing of Optison with Mallinckrodt/ Tyco. This first generation product was obtained in part settlement of litigation relating to Nycomed Amersham’s strong intellectual property position and enables us to provide a complete range of diagnostic products across all modalities.

In product development, clinical trials were undertaken to evaluate the feasibility of several new products in important therapeutic areas. In cardiovascular disease, our ultrasound product Sonazoid™ promises to be an exciting new addition to cardiovascular diagnosis, through the combination of excellent bubble technology and enhanced software. This will complement the additional life cycle benefits being progressed for Myoview.

Neurological disease
Approximately 500,000 people across Europe suffer from Parkinson’s disease, with 60,000 new cases arising each year. This debilitating neurological disorder occurs due to a significant decrease in a key chemical transmitter in the brain, actually commencing several years before symptoms are visible.

The Chief Executive's business review continues on the next page >>
(page 3 of 7)