1. Hale & Tempest The Sustainability of Generics Dr. Brian W Tempest www.briantempest.com Centre for Doctoral Training in Healthcare, University of Oxford, UK 8 March 2012

2. Hale & Tempest Dr Brian Tempest advises Companies, Banks, High Net Worth Individuals and Investment Funds on their Strategy in the Emerging World based on his wide experience in China, Japan, South East Asia and India where he has lived for the last decade. Brian has worked for Ranbaxy Laboratories since 1995 holding the position of Managing Director and Chief Executive Officer until 2005. He was then Chief Mentor and Non Executive Director until 2008 when he retired. He is one of the few westerners to have led a Sensex Nifty 50 Indian blue Chip MNC and as a result has a valuable insight into India. Brian has also worked for Glaxo as Regional Director Far East and Regional Director Middle East & Africa from 1985 to 1992. Brian has worked in the Pharmaceutical Industry for the last 41 years and has managed Healthcare businesses in North America, South America, Europe, Africa, Middle East, Australasia, China, Japan and India. He has also led many sessions at Investor Meetings held around the world. He is now Independent Chairman of Religare Capital Markets PLC, a Non Executive Director of Fortis Healthcare the leading Asian Healthcare Company, a Non Executive Director of SRL the largest Indian Diagnostic Company and a Non Executive Director of Glenmark Pharmaceuticals. He is a member of the SCRIP Global awards panel and is on the Editorial Board of the Journal of Generic Medicines. Brian speaks at global conferences and more information on these presentations can be found on his website www.briantempest.com. Brian has a PhD in Polymer Chemistry from Lancaster University in 1971 and in 2009 he became Chairman of the Advisory Board for the Lancaster University Management School, UK. He is a Fellow of the Royal Society of Medicine and a Fellow of the Royal Society of Chemistry and is a Chartered Chemist. He is now Chairman and Senior Partner of Hale & Tempest Co Ltd

3. Hale & Tempest Healthcare Pressures Forever - 2050

4. Hale & Tempest Healthcare will explode further in Asia

5. Hale & Tempest Consolidation in Generics 2003 - 2010

6. Hale & Tempest Structural Changes - Big Pharma

7. Hale & Tempest Fewer New Molecules Approved

8. Hale & Tempest 2010-21 FDA NCEs Source: Fiercebiotech 22 Jan 2011 2011-34 (15 Big Pharma)

9. Hale & Tempest Eventually the cost of capital consumed showed a poor return  “Nobody endured these lessons harder than Pfizer. The company built the world’s largest pharmaceutical research centre in Connecticut, USA, a 160 acre site with more than 5,000 employees at its peak and 2.7m sq ft of research space. But the only major drug to come out of the sprawling facility in the past 20 years was the smoking cessation treatment Chantix” Source; Pharmatimes February 2012

10. Hale & Tempest Approvals & Reimbursements Source: Pharmatimes UK August 2011

11. Hale & Tempest US 2010 False Claims Fines Chemistry World Jan 2011 2011 False Claims Fines - Pfizer $2.3b, Lilly $1.4b, J&J $1.b

12. Hale & Tempest Top Five US Industries for layoffs in 09/10 Source Challenger, Gray & Christmas

13. Hale & Tempest Merck – No 1 Layoffs in 2011 source FiercePharma

14. Hale & Tempest Big Pharma Strategies  Share repurchase - AZ, Pfizer, Sanofi Aventis  Shedding businesses – Pfizer $1.9b nutrition, $3.6b animal health, £2.4b Capsugel  Eye Care - Novartis & Alcon  Consumer Healthcare – Sanofi Aventis, GSK  OTC – P&G with Teva  DPI Inhaler – Pfizer & Mylan  Generics – Pfizer, Sanofi Aventis, AZ  Pharmemerging – GSK, Abbott, Daichi Sankyo

15. Hale & Tempest M&A Deals in Pharmemerging Markets Source: Company Filings, Mape Securities

16. Hale & Tempest Structural Changes - Generic Companies

17. Hale & Tempest Pricing Pressures Source: Watson

18. Hale & Tempest European Generic Prices Source Ranbaxy

19. Hale & Tempest Mylan won’t follow “irrational behavior” Source : Generics Bulletin 5 August 2011

20. Hale & Tempest India Pharma Stock has consistently outperformed Global Peers Bloomberg

21. Hale & Tempest Emerging Market Equities in last 12m Source: 30 Jan 2012 Business Standard

22. Hale & Tempest Rising Competition Source: JM Financials 24 August 2011, Deutche Bank 8 July 2011  With generic Lotrel higher strengths there was an unexpected excessive number of generics approved after the exclusive period ended  Increased competitive activity with para 4 filings. Multiple players for small opportunities.  Small new Indian players in para 4 - Macleods for Lipitor, Hetero for Nexium

23. Hale & Tempest India & China Generic Companies Source – FT

24. Hale & Tempest Top 25 Global Generic Companies Source: Generics Bulletin 10 June 2011

25. Hale & Tempest Next 24 Global Generic Companies Source: Generics Bulletin 10 June 2011

26. Hale & Tempest USA Generics Filings Source: Deutsche bank July 2010

27. Hale & Tempest Pending ANDAs source: Deutsche Bank Jan 2012

28. Hale & Tempest US Litigation Risks are Substantial  Patent Challenges on rise - 65 FTFs in 2009  Generic success rate at 48% (76% with deals)  3 courts hold 69%, with 36% success e.g. NJ  4 courts never ruled against generics e.g. NY  At Risk launches on the rise - 6 in 2009  Teva has 12 of the 28 At Risk launches 2002/9 Source RBC Capital Markets January 15 2010  Recent At Risk launch damages include – Apotex $0.44b, Sun $0.9b, Teva $1b+ Famvir  Teva rethinking At Risk strategy

29. Hale & Tempest China Pharma Industry Capex Plans Source: Stravencom

30. Hale & Tempest India Pharma Industry Capex Plans Source: MAPE

31. Hale & Tempest FDA DMFs from China 3Q 2011

32. Hale & Tempest FDA DMFs from India 3Q 2011

33. Hale & Tempest Indian Generic FDA ANDA Approvals

34. Hale & Tempest Indian Companies Changing Hands Source Mint Research December 13 2011

35. Hale & Tempest Frost & Sullivan forecast the Global Generic Market at $231b in 2017 FiercePharma

36. Hale & Tempest 70% of Top products will be Biologic-2016 Source: Sandoz EGA Conference 2011

37. Hale & Tempest Biosimilar Patent Expiries $17b in 2015 Source: Sandoz

38. Hale & Tempest Biosimilar Patent Expires $64b in 2015 Source: IMS

39. Hale & Tempest Number of mABs entering the clinic annually rose to 54 in 2008 Source: Tufts

40. Hale & Tempest How much is a Biosimilar worth? Source: Datamonitor

41. Hale & Tempest Biosimilar Partnerships – New Faces  Cipla & Biomab, China $165m 12 products  Richter & Stada – mABs  Celltrion, Korea & Hospira, Egis, Hikma, BB  Biocon & Mylan, USA  Teva & Lonza, EU  Biocon Idec & Samsung, Japan  Watson & Amgen, USA  Fuji Film & Kyowa Hakko Kirin  Baxter & Momenta, USA  Actavis & Bioton,Poland  Pfizer & Hisun, China

42. Hale & Tempest A New World Order in Generics is Coming with New Faces

43. Hale & Tempest Thank You brian.tempest@clara.co.uk www.briantempest.com