1. Pharmaceuticals Limited India – CIS International Pharma Conference 3-5 th March 2006, Mumbai Prashant Nagre Vice President – API Division

2. Top 10 destinations for Bulk Drugs Russia and CIS does not feature ! Top 10 destinations for Formulations Russia ranks 2nd What should be our OBJECTIVE? CIS should be among TOP 5 destinations

3. IndianPharmaceuticalIndustry Indian Pharmaceutical Industry An Overview

4. Industry Overview -  More than 8,000 to 9,000 manufacturing units  300 Large and Medium sized companies account for more than 80% turnover  Performance  Turnover : $ 8.2 bn, growth 9%  Exports: $ 3.5 bn, growth 14.86%  API exports contribute 32%, growth 5%  Well established central & regional network of Regulatory authorities  Patent Act of 1970 helped the industry to grow rapidly INDIA IS SELF-SUFFICIENT TODAY

5. Industry Overview  Infrastructure  Well developed, most of the pharmaceutical machinery locally made, Engineering and plant designs matching international standards  cGMP compliant manufacturing infrastructure  International approvals/accreditations  US FDA approvals - >80 units  UK MHRA  TGA, Australia  WHO-GMP  Talent Pool  Availability of educated manpower in abundance (Pharmacy, Engineering, Biotech and Science graduates)  Rich scientific talent & research capabilities

6. Strengths : Active Pharmaceutical Ingredients Industry

7. Strengths – Bulk Drug Industry  Reverse Engineering –  Process patents regime helped Indian industry to gain significant skills in Chemistry and process engineering  Quality –  comparable to best in world  Competitiveness –  Through efficiencies and lower cost of production in India  Understanding of regulatory requirements –  More than 35% of DMFs were filed from India in the US  State-of-the-art R&D infrastructure

8. Strengths – Bulk Drug Industry  Introduction of product patents  Ability to be a partner in outsourcing and launch of new products  Product Portfolio  wide variety of drugs substances produced (Traditional antibiotics, New lifestyle categories like Cardiac, Respiratory and Vitamins, Anti HIV/ AIDS, CNS & Diabetic )  Bird flu : Indian companies in the fore front

9. Major Players : Bulk Drug Industry Ranbaxy Labs Cipla Dr Reddy Labs GSK Nicholas Piramal Lupin Ltd Sun Pharma Cadila Healthcare Aurobindo Pharma Wockhardt Ltd (Source: Compiled by Cygnus)

10. Why to buy Indian Pharmaceuticals ?

11. Reliability Growth in exports mainly attributable to this reason

12. Why to buy Indian Pharmaceuticals ?  Consolidated know-how in production process  High Product Quality  New regulatory compliance culture  Consistency in Quality  Strict Regulatory Compliance  Products meet most stringent GMP standards  Continuous technological innovation through R & D  Professionalism of sales and technical staff – “Global Service”

16. Opportunities ex-India

17. Opportunities  Exports  Bulk Drugs  Chemicals/Raw materials/Intermediates  Biotech & Biological Products  Joint Ventures with Indian Companies  Technology acquisitions

18. Opportunities  Pellets/Directly compressible granules/times release products  Contract Research and Manufacturing (CRAMS)  Diversification in Destination – Russia & Ukraine constituted 78% of total bulk drug exports

19. Vision for Indian Pharmaceutical Industry Padmabhushan Dr R A Mashelkar  Be Innovative  Not embark on beaten paths but traverse untrodden paths  Have Compassion  By creating therapeutics for poor that are available, affordable and accessible  Have Passion  To be best in the WORLD in terms of Quality of products, highest ethical standards and providing value for money

20. Thank you.