Pershing Square Activist Presentation Deck

Patent Cliff Portfolio We use a discounted cash flow analysis to value the cliff portfolio Assumptions: ▸ No Life-Cycle Management ■ Assumes management is not able to extend patent exclusivity beyond the original expiration ► Revenues after patent cliff are zero ■ Assumes that the merged company's market share drops to zero immediately after the patent expires ■ Assumes the merged company will not enter the generic market ► Costs are variable ■ Assumes the merged company is able to reduce SG&A and R&D costs proportionate to the revenue lost from patent cliffs 80

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