Corporate Presentation

Jan 2010
 Safe Harbor
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

forward-looking
looking statements
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,
h i
investment and
d business
b i i
income, cash
h flow
fl projections,
j i our exposure to market
k risks
i k as wellll

as other risks. Ranbaxy does not undertake any obligation to update forward-looking statements to

reflect events or circumstances after the date thereof.

 Mission
“To become a Research-based International
Pharmaceutical Company”

Vision – 2012
Achieve significant business
in proprietary prescription products by 2012
with a strong presence in developed markets
 Values

• Achieving customer satisfaction is fundamental to our business

• Provide products and services of the highest quality

• Practice dignity and equity in relationship and provide opportunities for

our people to realise their full potential

• Ensure profitable growth and enhance wealth of the shareholders

• Foster mutually beneficial relations with all our business partners

• Manage our operations with high concern for safety and environment

• Be a responsible corporate citizen

 Ranbaxy Overview
• India’s largest pharmaceutical company

• Ranbaxy & Daiichi Sankyo combined rank among the top 20 global
pharmaceutical companies

• Worldwide Presence

• Ground p
presence in 46 countries,, products
p sold in over 125 countries

• Manufacturing locations in 7 countries

• Global consolidated sales – US $ 1519 Mn (2009)

• Business

- International 77%
- Domestic 23%
• >12000 employees globally represented by 50 nationalities
 Global Pharmaceutical Landscape
Global Pharma Market Slice
US $ Bn Global Pharmaceuticals Market:

• 2008:
2008 ~ US $ 726 Bn
B (+5%)
( 5%)

Global Generics Market:

• 2008: US $ 78 Bn (+3.6%)

Key Drivers of Generics:

• Significant
g p
patent expiries
p ((~US $
80 Bn drugs) through 2012
• Increasing generic penetration
• Rationalizing healthcare costs
• Emerging markets opportunity

Source : IMS Mat Sept 2008

 The Global Generics Advantages
Growth Potential

• Patent Expiries
• New
N M
Markets
k t
• Healthcare Costs

Consolidation India Factor

• Size & Scale • Scientific Talent

• Therapeutic Width • Cost Advantage
• Operational Synergies • Gx / Rx Competencies

Product Portfolio
• Pressure on Vanilla Gx
• Move to Specialty/ Niche
 Our Global Presence
• North America • Europe • Asia (incl. Middle East)
• Latin America • Africa • Japan
 Business Model
Global Reach Product Portfolio
• Developed Markets • Generics
North America
America, EU
EU, Japan
Japan, Australia • Branded Generics
• Emerging markets • Branded & OTC
India, Romania, CIS,
South Africa,
Brazil, Mexico Competitive Advantages
• Aggressive Marketing
• Low cost of Innovation
• Manufacturing Competitiveness
• Global Management
Research &
Development Manufacturing

• New Chemical Entities • Dosage Form

• Generics / NDDS* • API* - Vertical Integration

p
• Complex / Niche/ FTF* • In-house / Outsource

• The India advantage • The India advantage

* NDDS - Novel Drug Delivery System, API – Active Pharmaceutical Ingredients, FTF – First to File
 Global Sales Split
CIS*
Asia

North
N th
America

RoW

API
Europe

Global Sales (2009): US $ 1519 Mn

* CIS includes Russia & Ukraine belt
 Evolution of Market Mix

Others
7%

Emerging
54%
Developed
39%

FY 2005 FY 2009

• Improving balance in market mix

• Growth well spread across geographies
• Positioned
P iti d tto lleverage various
i market
k t opportunities
t iti
 Our Key Geographies
North America
Pioneer entrant from India
Strong local presence
Canada: New market, growing rapidly
EUROPE

Well established
Presence in 23 of 27 EU countries
No. 1 Generic player in Romania
Key markets - UK, France & Germany

Emerging Markets

Leadership in domestic market- India

Estd. Infrastructure in Romania, Brazil, Russia & South Africa
Profitable branded generics markets
 Developed Markets Presence
• Largest generic market worldwide
• Significant patent expiries through 2011
USA

• Germany, UK - mature markets

• France, Spain, Italy, Romania - emerging markets
EU • Ranbaxy has presence in 23 of the 27 EU countries

• Mature generic market

• Ranbaxy is the fastest growing generics company in Canada
Canada

• Emerging generic market, < 5% generic penetration

• 1st Indian pharma company
Japan
 Emerging Markets Presence
• Leadership position in domestic market
• Company
p yg growing
g faster than market
India

• Ranked as the No 1 Generics Company

• Strategic for servicing EU operations
Romania

• Strong base in acute therapies

• Fast expanding into chronic and OTC segments

Russia &
Ukraine

• Key market in the African continent

• A strong No 5 player in the region
South Africa
 India

• India’s largest pharmaceutical company by sales and ranked No 2 by

market share

• Company growing faster than market

• Company has one of the largest distribution networks that comprises

2500+ skilled field force

• Dedicated task forces for specialised & chronic therapies

• 18 brands in Top 300 of Industry

 Research & Development

State-of-the-art R&D facilities

based in India

R&D III

R&D I R&D II R&D IV

 Research & Development

• Dedicated Facilities for Innovative & Generics Research

• > 1400 R&D Personnel ( ~ 300 Doctorates)

• Highest R&D spender across industry

• 8 - 10 NCE molecules in pipeline

pp

• NDDS based products (4 platform technologies)

• R&D collaborations

Alliance / Alliance /
Collaboration in Collaboration in
NDDR NDDR

Out-licensing g
Out-licensing
In NDDR In NDDS
 Our Global Manufacturing Strengths
• cGMP compliant world-class API & Dosage Forms manufacturing facilities across
the globe
• 7 manufacturing locations worldwide
• API facilities - increasing vertical integration
• Creating capacities for specialty products
• New facilities added in cost advantageous geographies

USA Ireland Romania Nigeria

India South Africa Malaysia

 Inorganic Strategy

To capitalize on the opportunities in the ongoing consolidation for…

• Size and scale in developed & emerging markets

• Expansion of geographical reach

• Access to niche and complex products / therapeutic areas

• Costs efficiencies in manufacturing and R&D

...providing a strategic and value accretive fit

 Acquisitions & Alliances Since 2006

> US $ 500 Mn spend on M&A

• Terapia
p ((Romania))

• Be-Tabs (South Africa) • Orchid (India)

• Allen (Italy) • Zenotech ((India))

• Ethimed (Belgium) • Krebs (India)

• Mundogen (Spain) • Jupiter (India)

• Derma Brands (USA) • Cardinal Drugs (India)

• Auto-injector Tech (USA)
 Ranbaxy – Daiichi Sankyo Partnership
• A path breaking confluence that redefines the global pharma paradigm
• Combines complementary strengths
• P id solutions
Provides l ti tto kkey need-gaps
d f each
for h organisation
i ti

• Strategic combination creates an Innovator and Generic Pharmaceutical

Powerhouse

• Combined entity is ranked among the Top 20 global pharmaceutical

companies

• Ranbaxy enters into a new orbit to chart a higher trajectory

• Complementary strengths ranging from excellence in NDDR to

extensive reach across global markets

• Financially & strategically beneficial for all stakeholders

 To become a Global Pharma Innovator

Global Pharma Innovator

Strengthen our Focus on Achieve scientific and

presence technological
Pharmaceuticals,
worldwide innovations, create an
develop novel
innovative business
drugs continuously model

Complementary Business Combination

An Integrated, Research Based,

Global Pharma Innovator
International Pharmaceutical
Company
 Corporate Social Responsibility
• An essential component of Ranbaxy’s CSR is to care for the
community

• Based on the theme ‘Health For All’ set up ‘Ranbaxy Rural

Development Trust’ in 1978; later re-christened as ‘Ranbaxy
Community Health Care Society’ in 1994

• Operates in the states of Punjab, Haryana, Himachal

Pradesh, Madhya Pradesh and Delhi/Gurgaon to provide
i t
integrated
t d health
h lth care to
t about
b t 2 lakh
l kh people
l staying
t i iin 100
villages and urban slum areas

• Provides a blend of curative

curative, preventive and health
promotive services covering areas of maternal child health,
family planning, adolescent health, reproductive health and
education
 Corporate Social Responsibility
• AIDS awareness and counselling is a priority component of
the CSR programme

• Established meaningful and useful partnerships with the

Government, Medical Colleges, NGO’s, Educational
Institutions, Confederation of Indian Industry and other like
minded agencies

• Anti-Aids
– Provides
P id iinnovativeti andd affordable
ff d bl antiti HIV medicines
di i
– Over 5 lakh patients worldwide benefit from Ranbaxy’s
ARV drugs
– First
s in the
e world
o d Pediatrics
ed a cs ARV

• Malaria Research
– Molecule in Phase III Clinical Trials
– Intended for patients in developing/ countries
 Corporate Governance
“An institutionalized framework of Corporate Governance and Code of
Practices to strengthen decision making and compliance with ethical
integrity
g y and reliability”
y

Board Of Directors

Science Shareholder
Grievance/Transfer

Committees of the Board

Audit Compensation

Management
Thank You