India

1
India China
Dr. Brian W Tempest Chief Mentor Executive Vice
Chairman of the Board Ranbaxy Laboratories
Limited, Delhi, India Berlin 6th December
2006
2
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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Asias Share of the World GDP (at PPP in )

• Year 1870 1913
  1950 1973 2001
• China 17 9
  5 5 12
• India 12 8
  4 3 5
• Japan 2 3
  3 8 7
• Rest of Asia 7 5 7
  9 13
• Total Asia 38 25
  19 25 37
• Source WEF
• - was 59 in 1820 with India 16,
  China 33

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The RD Investment Advantage

• 
  
• Most attractive RD Investment locations
• Ranked 3rd - China, USA, India, Japan UK
• Source UNCTAD 2005

• 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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The Education Advantage

• 4th largest reservoir of Scientific Manpower (2nd
  largest English speaking)
• 3m graduates pa, 115k MSc Chemistry (3.5k UK),
  215k Eng (222k USA)
• Physics the most popular subject
• Knowledge super power in the making
• Lead by a Nuclear Scientist as President remote
  sensing satellite technology, 1/6 countries
• PCT application ranked 3rd K, Ch, Ind, Si, RSA
• US Europe will not dominate Science, Maths, IT
  industries
• Diaspora network (25m across 120 countries)

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The Education Advantage
Engineers/Science graduates p.a India 0.7m,
China 0.5m, EU 0.5m, USA 0.4m, Japan 0.3m
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The Clinical Advantage

• Cost Advantage
• China India
• Enrolment 50 33
• Cost 40 16
• Patients/site 250 500
• Based on USA at 100 Index
• Source BCG report Looking Forward 2006

Country USA India Sites 22 8 Subject 626 896
Source Andy Lee Pfizer Global, head clinical
study and data management.Business India, August
13, 2006
Medical Tourism
Thailand India -
Open heart 14250
4400 - Hysterectomy
2012 571 - Knee surgery
7000 4500

• Patients
• Naïve untreated patients
• HIV 50m
• Diabetes 32m
• HT 5m

..The Countrys World Class skills in
Chemistry IT and its large treatment
naive patient population provides added allure
Boston Consultancy
Group Harnessing the power of India 2006
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The Pharma Advantage
Competitive Advantage - Cost of Innovation

• Clinical data management
• An Indian speciality
• 300 staff GSK
• -2.2m clinical data sheets
• -450 trials
• -Error rate lt0.01/100k
• -No data security issues
• Source BCG report Looking Eastward Sep2006

RD hotbeds China India have become
RD hotbeds.. MNCs already operate some 180
RD centres in China and More than 100 in
India Source BCG report Looking Eastward
Sep2006
2005
2004
2001
185
2000
1999
170
146
86
49
24
32
Ranbaxys Patent Filings
RD III
24
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The Pharma Advantage APIs
USA DMF filings by India
Share of USA DMF filings

• 
  
  
• India China
  
• 2004 27 9
• 2005 37 10
• Q106 44 15
• Q206 41 16
• Source US FDA / J P Morgan, 6th
  August 2006

• 
  
• 1990
  1
• 1995 4
• 2000 36
  
• 2004 187
• 2005 262
• Source Crisil / US FDA / J P Morgan

Source US FDA, Credit Suisse
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Global Market Trends Vendor Availability

India
China Analog preparation 41 25 Combinatorial
chemistry 37 7 Analytical chemistry 37 7 Str
uctural chemistry 26 5 Assay
development 26 2 Computer drug
design 26 13 High throughput
Screening 11 2 Bio informatics 13 7 Genetica
lly modified animals 0 3 Basic molecular
biology 13 25 Out of 90 vendors in October
2005 Source BCG, Looking Eastwards,
September 2006
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India

• A Global Strategic Asset for developed
• World Market businesses

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Potential Challenge - Pollution
USA 4 population with 20 emissions China
Same level as USA in 2005. In 2025 will be
double India, China, USA Refuse any mandatory
CO2 emission caps India is 6th greatest energy
consumer Ganges River is the Worlds most
polluted river source World Commission on
water
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Potential Challenge InfrastructureA common view
- Infrastructure will need 155b over the next
five years
Source Manmohan Singh
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Thank You