India

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India The Pharma Advantage
Dr. Brian W Tempest Chief Mentor Executive Vice
Chairman of the Board Ranbaxy Laboratories
Limited, Delhi, India Tokyo 14th June06
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Disclaimer
Except for the historical information contained
herein, statements in this presentation and the
subsequent discussions, which include words or
phrases such as will, aim, will likely
result, would, believe, may, expect,
will continue, anticipate, estimate,
intend, plan, contemplate, seek to,
future, objective, goal, likely,
project, should, potential, will pursue
and similar expressions or variations of such
expressions may constitute "forward-looking
statements". These forward-looking statements
involve a number of risks, uncertainties and
other factors that could cause actual results to
differ materially from those suggested by the
forward-looking statements. These risks and
uncertainties include, but are not limited to our
ability to successfully implement our strategy,
our growth and expansion plans, obtain regulatory
approvals, our provisioning policies,
technological changes, investment and business
income, cash flow projections, our exposure to
market risks as well as other risks. Ranbaxy does
not undertake any obligation to update
forward-looking statements to reflect events or
circumstances after the date thereof.
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Davos 2006
Source FT
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The Productivity Advantage
India a usa Pharma view
USA
1 chemist 1 chemist
Better education x 1,3
70 h/week 50 h/week
Longer working time x 1,3
800 monthly
12,000 monthly
Lower cost x 20
Sources IPHMR Conferences, New Delhi August 2004
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The RD Investment Advantage

• 
  
• Most attractive RD Investment locations
• 1. China
• 2. USA
• 3. India
• 4. Japan
• 5. UK
• Source UNCTAD 2005

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The RD Investment Advantage -reasons why India

• Qualified Scientists Engineers
• Global India players with Alliances
• English speaking
• TRIPs compliant first patent March 2006
• IIT, IIM other scientific institutions
• Source UNCTAD 2005

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Investment by top 15 Indian Domestic
Pharmaceutical Companies

• 
  m
• 2000
  110
• 2001
  160
• 2002
  200
• 2003
  250
• 2004
  400
• 2005
  450
• - Leading to even more Pharma RD facilities and
  factories
• Source Citigroup

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Investment by foreign Pharma companies
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The Global Generic Market growing everywhere

• b 2004
  2009
• USA 15
  27
• W Europe 9
  14
• Japan 3
  4
• Rest of America 6
  9
• ROW 25
  40
• Total 58
  94
• Source Frost Sullivan
• India could soon dominate the entire
  production chain for generics
• IMS prediction No 4 Scrip April 5 2006
  

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The Pharma Advantage
Competitive Advantage Aggressive Home Market
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The Pharma Advantage
Competitive Advantage - Cost of Manufacture
Active Pharmaceuticals Facility, Mohali
Dosage Forms Facility, Paonta Sahib
Highest number of FDA approved plants outside
the US

• No. of FDA approved plants
• 1990 1
• 1995 10
• 44
• 2004 105
• Source Crisil / IPA

• Exports (m)
• 1990 15
• 45
• 2010E 70
• Source IPA

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Add wallmart award slide
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The Pharma Advantage
Competitive Advantage - Cost of Innovation
RD I
RD II
RD III
RD IV
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The Pharma Advantage APIs
Chindia filings
USA DMF filings by India

• 1999 13
• 2000 17
• 2001 20
• 2002 30
• 2003 35
• 2004 40
• Source Citigroup
• DMF Drug Master Files
• Q1 2006 India alone 43

• 
  
• 1990
  1
• 1995 4
• 2000 36
  
• 2004 162
• Source Crisil

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The Pharma Advantage - ANDAs

• Annual USA ANDA Filings
• Ranbaxy 29
• Sun 22
• Orchid 18
• Lupin 14
• DRL 13
• Cadilla 12
• Source Pharmabiz 8th Sept 2005
• - One in every four ANDAs filed
  by Indian Companies
• Source KPMG
• - 29 ANDAs p.a ranks in top 3 filers

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Leading Generic Companies
Annual Sales (US Millions)
Source Company /Financial reports
presentations
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Thank You