FROM Rewar;h & Development March 27, 1992 Priwite ,~, Confidential "3 10 TO Mr. Jean-Louis Mercier jZeVonse to RAT Industries' Note on Tnnsdermstl Nicotine (28,02,92) We ar-- not in a position to comment on claims that the nicotine trarisdermal patch developed by Stowic Resources Ltd. is an improvement over existing transdermal nicotine delive-; systems. We are aware that studies of the efficacy of nicotine gum or tnansdermal patches on smoking cessation invariably show a significant benefit in the short term, but only a small advantage (if any) over placebo in the long term (6+ months). Since i- is our belief that the smoldng habit is not determined solely by nicotine, but also by a n=ber of conditioned behavioural responses and organoleptic rewards, no substitute relying on nicotine alone will be 100% effective in achieving smoking cessation. Having said that, given the large proportion of smokers wanting to quit, any device which helps even a small fraction to achieve this goal has the potential to have a negative impact on our *-.11siness. One could make an argument for the industry supporting development of alt=-ative nicotine delivery systems by considering them in the same philosophical light as brand extensions or, in this case, a business extension. The rationale is that if anyore is going to take away our business it should be us. As mentioned in the letter, there is a growing awareness that nicotine itself can be benefic::al: it can enhance mental performance, act as a therapeutic (e.g. Tourette's syndro =-, ulcerative coliris etc.) or be used to prevent the onset of certain dL;e=s (e.g. Parldnson's, endometrial cancer etc.). Although at prtsent nicotine has more bad press than gcod, in the fumm there may be a market for a nico6iie- delivery system over and above -ts use as a quirtLng tool. (I'm sure the manufacturer of nicotine gum and transde-mal patches won't miss too many opportunities to promote this Idnd of use). In conLusion, in effective quitting aid based on nicotine could have a serious impact on our business and it would be better for us than someone else to profit from it. But whethe: the Stowic Resources transdermal patch is such a device we don't know (reme=:~!er the premature leap into Favor?). However there may be a market for this device !.s a therapeutic Ln the (much?) longer term. CD N-) U-1 C~o U-1 BATCo document for Province of British Columbia 26 October 1999 -2- If we were inter-ested in pursuing this fizther, and with the absence of the F.R.C. pool of resources, we should commission an independent review of the work being done in the field (both technical aspects and clinical trials), the backgrounds of the other companies involved, the pawnt situation &ad the regulatory requirements governing the sale of such products. C) N) Q;-- cc GN BATCo document for Province of British Columbia 26 October 1999