Pharmaceuticals LimitedPharmaceuticals Limited

India – CIS International Pharma ConferenceIndia – CIS International Pharma Conference3-53-5thth March 2006, Mumbai March 2006, Mumbai

Prashant NagreVice President – API Division

Top 10 destinations for Top 10 destinations for Bulk DrugsBulk DrugsRussia and CIS does not feature !Russia and CIS does not feature !

Top 10 destinations for Top 10 destinations for FormulationsFormulations Russia ranks Russia ranks 2nd2nd

What should be our OBJECTIVE?

CIS should be among CIS should be among

TOP 5TOP 5 destinationsdestinations

IndianIndian PharmaceuticalPharmaceutical IndustryIndustry

An OverviewAn Overview

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 rapidlyINDIA IS SELF-SUFFICIENT TODAY

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

Strengths : Strengths :

Active Pharmaceutical Ingredients Active Pharmaceutical Ingredients IndustryIndustry

Strengths – Bulk Drug IndustryReverse 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

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

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)

Why to buy Why to buy Indian Pharmaceuticals ?Indian Pharmaceuticals ?

Why to buy Why to buy Indian Pharmaceuticals ?Indian Pharmaceuticals ?

Reliability

Growth in exports mainly attributable to this reason

Why to buy Why to buy Indian Pharmaceuticals ?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”

Major Therapeutic Segments - 2004

Others4%

Gynaecologicals5%

CNS5%

Dermatologicals6%

Vitamins10%Analgesics

10%

Respiratory10%

Gastrointestinal11%

Cardiac11%

Anti-infectives16%

Opthalmologicals2%

Anti-diabetics5%

Hormones2%

Anti-TB2%Sex-Stimulants

1%

Top Bulk drug export destinations to CIS

Russia54%Ukraine

23%

Kyrgyzstan0%

Belarus10%

Uzbekistan3%

Kazakhstan2%

Turkmenistan2%

Moldova2%

Armenia2%

Tajikistan0%

Georgia1%

Azerbaijan1%

Top 10 bulk drugs exported to CIS countries

Ampicillin & its Salts33%

Diloxanide Furoate13%

Cefadroxil12%

Rifampicin10%

Ranitidine9%

Metronidazole/Metro Benzoate

5%

HCl5%

Amoxycilling & its salts,Ethambutal, Ethambutol HCL

5%

Cephalexin & its salts4% Ciprofloxacin & its sales

4%

Opportunities ex-IndiaOpportunities ex-India

Opportunities Exports

Bulk Drugs Chemicals/Raw materials/Intermediates Biotech & Biological Products

Joint Ventures with Indian Companies Technology acquisitions

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

Vision for Indian Pharmaceutical Industry

Padmabhushan Padmabhushan

Dr R A MashelkarDr 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

Thank you.Thank you.