Partners in Globalisation UK Trade

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Partners in Globalisation UK Trade Investment
British Business Group in Mumbai Pune
Dr. Brian W Tempest Chief Mentor Executive Vice
Chairman of the Board Ranbaxy Laboratories
Limited, Delhi, India Ranbaxy Case Study Mumbai
Thursday 27th September 2007
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DR. BRIAN W. TEMPEST CSci, CChem, MRSC, BSc,
PhD Brian Tempest has worked in the pharma
industry for the last 36 years. During this time
he has worked for several pharma majors,
including Glaxo, Beecham Searle, around the
world and joined Ranbaxy 12 years ago. During
this period Ranbaxy has transformed from a small
company focused on the India domestic market, to
a top 10 global generic company. Dr. Tempest has
lived in New Delhi, India for the last 8 years,
and has been President, Managing Director Chief
Executive Officer and Chief Mentor Executive
Vice Chairman of the Board. Dr. Tempest
retires from Ranbaxy in December 2007 having
reached 60. Dr. Tempest is one of a few
westerners to have held a leadership position in
an Indian blue chip MNC, and has an unusual
insight into India. Dr Tempest is also a Honorary
Professor of the Management School at Lancaster
University, UK, and he sits on the Editorial
Board of the Journal of Generic Medicines and the
Advisory Board of the India Fund held by JM
Financial Investment Managers Ltd n
Mumbai. brian.tempest_at_gmail.com /
brian.tempest_at_clara.co.uk Mobile [phone]
/ Tel[phone]

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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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Asia on the Rise
Source FT
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A race to prosperity
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The Productivity Advantage
India a usa Pharma view USA
1 chemist Better education x
1.3 1 chemist
70 hours/week Longer working time x 1.3
50 hours/week
800 monthly Lower cost x 20
12,000 monthly
Sources IPHMR Conferences, New Delhi August 2004
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The Education Advantage
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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 Pharma Plants Advantage
Active Pharmaceuticals Facility, Mohali
Dosage Forms Facility, Paonta Sahib
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Generics APIs
USA DMF filings by India
Share of USA DMF filings

• 
  
  
• India China
  
• 2004 27 9
• 2005 37 10
• 2006 44 14
• Q107 48 17
• Source US FDA / J P Morgan, 2 May
  2007

• 
  
  
• India China
  
• 2004 187 48
• 2005 252 87
• 2006 357 128
• Source US FDA / J P Morgan, 6th
  August 2006

Source US FDA, Credit Suisse
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Generics - ANDAs
ANDA Filings in USA by Indian Companies
250
144
64
46
24

• - One in every four ANDAs filed
  by Indian Companies in top
• USA FDA filers
• Source KPMG
• - No Chinese generic company has
  yet filed a USA FDA ANDA
• but expected in 2008

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Patient Recruitment
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The Pharma Clinical Advantage

• Cost Advantage
• China India
• 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 Cardiac Surgery 000s

USA 30 Singapore 20 Thailand 14
India 5-7 Source Business world, 18th Dec2006

• 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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Ranbaxy Today
Worldwide Presence

• Amongst the top 10 Global Gx companies
• Ground presence in 49 countries,
• products sold in gt 125
• International business 80 of sales
• Ranked 1 in the Indian Pharma industry
• Manufacturing locations in 9 countries
• gt 11,000 employees, 51 nationalities
• Strong Generics Innovative research
• capabilities

Global Sales
1340
CAGR 19
972
553
Unaudited
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Research Development

• Dedicated facilities for Gx Rx research
• Over 1400 people, 300 Doctorates
• Strong IP Global Regulatory expertise

RD spend 6.5 - 7 sales
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2006 Sales by Geography
1.34b
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The Role of the UK

• 1990
• Only Trading companies in
• Nigeria
• Malaysia
• Thailand

• 1995
• First Trading company in the West
• UK

• Today
• Worldwide President office
• European Regional Director office
• UK domestic operation
• Sales in 125 countries

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Perceptions of India
The Indian System looks ramshackle and
improvised. But at its best it is capable of
brilliance When we say the Silicon Valley
is built on ICs we dont mean integrated circuits
we mean Indians Chinese The UK needs to
wake up to what India is becoming Source
DEMOS report January 2007
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Thank You