INDUSTRIAL REVIEW PROJECT

COMPILED BY: Aditya Mittal Divya Reddy Gaurav Banerjee

CONTENTS

Chapter 1: Profile of the industry Chapter 2: Profile of the company i. Himalaya Health care ii. Dr. Reddy iii. Biocon Chapter 3: Research methodology i. ii. iii. iv. v. Statement Objectives of the study Scope of the study Purpose of the study Limitations

Chapter 4: Comparative analysis Chapter 5: Findings and implications Chapter 6: Conclusion Chapter 7: Annexure Chapter 8: Bibliography

The Indian Pharmaceutical Industry:

Himalaya Health care, Dr. Reddy and Biocon are the three very well known companies under the pharmaceutical company. This report gives an insight into all the three companies and helps us analyse the industry.

PHARMACEUTICAL INDUSTRY IN THE DOMESTIC MARKETS:

First it is very important to analyse the role of this very important industry in the domestic markets. This is because it is believed that for a firm or an industry to go global it is important to have a clear picture on its domestic markets.

The Indian Pharmaceutical Company is definitely in the front racks of Indias science based industries with wide ranging capabilities in the drug manufacture and technology. It is a highly organised sector and is estimated to be worth $ 4.5 billion, growing at about 8 to 9 per cent annually. It ranks very high in the third world, in terms of technology, quality and range of medicines manufactured. Form simple headache pills to sophisticated antibiotics and complex cardiac compounds; almost every type of medicine is now

indigenously made. The Indian Pharmaceutical Industry/ Sector are highly fragmented with more than 20,000 registered units which produce a wide variety of pills. In a way privatisation of this industry was for good!! Today this industry is one of the growing industries and has been expanding for the past two decades. The leading 250 companies control nearly 70% of the market with market leader holding nearly 7% of the market share. It is an extremely fragmented market with severe price competition and government control over the prices. This industry is one of the most crucial of all and the stern competition help the public to acquire life saving drugs at certain fixed rates. Also the government with all its rules and r egulations help the people with this objective. Interestingly the Pharmaceutical industry in India meets around 70% of the countries demand for bulk drugs, drug intermediaries, pharmaceutical formulation, chemicals, tablets, capsules, orals and injections. Thus it is obvious that it plays a key role in promoting and sustaining development of the nation as a whole.

Advantages in India:
COMPETENT WORKFORCE: India possesses a skilful workforce with high managerial and technical competence. They are willing to work and compete with one another to attain optimum levels. This is one of the strongest resources India boasts. COST-EFFECTIVE CHEMICAL SYNTHESIS: The track record for development, particularly in the areas of improved cost -beneficial chemical synthesis for various drug molecules is excellent. R&D departments of all the firms in the pharmaceutical industry are to be credited for this. INFORMATION AND TECHNOLOGY: This industry has a good network of world class educational institutions and established streng ths in IT. This cordial relationship has helped them improve. LEGAL AND FINANCIAL FRAMEWORK: India being a democratic country with a solid legal framework and solid financial markets has things planned well in advance. There is already an established inter national industry and business community.

GLOBALIZATION: The country is committed to a free market economy and globalisation. Above it has a major section of all the markets in this free economy which are on the rise. They are growing constantly and rapidl y. CONSOLIDATION: After a number of years, the International pharmaceutical industry has discovered great opportunities in the Indian markets. The process of consolidation, which has become a popular phenomenon in the world pharmaceutical industry, has started taking place in the Indian pharmaceutical industry as well which is very fascinating. The Indian pharmaceutical industry is worth USD 3.1 billion today, and is growing at the rate of 14% per annum.

The growth scenario:

Indian pharmaceutical industry is worth USD 3.1 billion and is growing at the rate of 14% per annum. This is by far the largest and the most advanced among the developing countries. Over 20,000 registered pharmaceutical units exist in the country. The domestic pharmaceutical industry output is expected to exceed Rs. 260 billion in the financial year 2002, which accounts for merely 1.3% of the global pharmaceutical sector. Of this, bulk drugs will account for Rs. Billion which is 21% and formulations, the remaining Rs. 210 billion which a ccounts to 79%. In the financial year 2001, imports were Rs. 20 billion while exports were Rs. 87 billion which is an amazing mark.

Steps or a few inferences to strengthen the industry:

Indian pharmaceutical industry boasts of quality producers and many units are approved by regulatory authorities in USA and UK. International companies associated with this sector have stimulated, assisted and spearheaded this dynamic development in the past 53 years and helped to put India on the pharmaceutical world map. Indian companies need to attain the right product -mix for sustained future growth. Core competencies will play an important role in determining the future of many Indian pharmaceutical companies in the post product -patent regime after 2005. Indian compani es will have to increasingly look at mergers and acquisitions of companies of various products. This would help them to offset

loss of new product options, improve their R&D efforts and improve distribution to penetrate markets.

PHARMACEUTICAL INDUSTRY IN THE INTERNATIONAL MARKETS:

The pharmaceutical industry develops, produces and markets drugs licensed for use as medications. Pharmaceutical companies can deal in generic or brand medications. They are subjected to a variety of laws and r egulations regarding the patenting, testing and marketing of drugs. Major pharmaceutical companies which undertake the production were all founded in the late 19 th and the early 20 th centuries. Key firms which produced insulin, penicillin were all founded in 1920s and 1930s became mass producers and distributors. Switzerland, Germany and Italy have strong base in the pharmaceutical companies. Legislation was enacted to test and approve drugs and to require appropriate labelling. Prescriptions and non-prescription drugs became legally distinguished from one another as the pharmaceutical industry matured. In 1950s the industry got an underway for the development of systematic scientific approaches, understanding of human biology and sophisticated manufacturing techniques. The industry remained relatively small until the 1970s when it began to expand at a greater rate. Legislations allowing for strong patents, to cover both the process of manufacture and the specific products, came in to force in most of the countries. By the mid 1980s small biotechnological firms were struggling for survival, which led to the formation of mutually beneficial partnership with large pharmaceutical companies and a host of corporate buyouts of the smaller firms. Pharmaceutical manufacturing became concentrated, with a few large companies holding a dominant position throughout the world and with a few companies producing medicines with each country. Attempts were made to increase regulation and to limit financial links between companies and prescribing physicians, including by the relatively new U.S. Food and Drug Administration (FDA). Such calls increased in the 1960s after the thalidomide tragedy came to light, in which the use of a new tranquilizer in pregnant women caused severe birth defects. In 1964, the World Medical Association issued its Declaration of Helsinki, which set standards for clinical research and demanded that subjects give their informed conse nt before enrolling in an experiment. Pharmaceutical companies became required to prove efficacy in clinical trials before marketing drugs.

Cancer drugs were a feature of the 1970s. From 1978, India took over as the primary center of pharmaceutical product ion without patent protection. The industry remained relatively small scale until the 1970s when it began to expand at a greater rate. Legislation allowing for strong patents, to cover both the process of manufacture and the specific products came in to f orce in most countries. By the mid-1980s, small biotechnology firms were struggling for survival, which led to the formation of mutually beneficial partnerships with large pharmaceutical companies and a host of corporate buyouts of the smaller firms. Pharm aceutical manufacturing became concentrated, with a few large companies holding a dominant position throughout the world and with a few companies producing medicines within each country. The pharmaceutical industry entered the 1980s pressured by economics and a host of new regulations, both safety and environmental, but also transformed by new DNA chemistries and new technologies for analysis and computation. Drugs for heart disease and for AIDS were a feature of the 1980s, involving challenges to regulatory bodies and a faster approval process. Managed care and Health maintenance organizations (HMOs) spread during the 1980s as part of an effort to contain rising medical costs, and the development of preventative and maintenance medications became more impor tant. A new business atmosphere became institutionalized in the 1990s, characterized by mergers and takeovers, and by a dramatic increase in the use of contract research organizations for clinical development and even for basic R&D. The pharmaceutical industry confronted a new business climate and new regulations, born in part from dealing with world market forces and protests by activists in developing countries. Animal Rights activism was also a problem. Marketing changed dramatically in the 1990s, partly because of a new consumerism. The Internet made possible the direct purchase of medicines by drug consumers and of raw materials by drug producers, transforming the nature of business. In the US, Direct-to-consumer advertising proliferated on radio and TV because of new FDA regulations in 1997 that liberalized requirements for the presentation of risks. The new antidepressants, the SSRIs, notably Fluoxetine (Prozac), rapidly became bestsellers and marketed for additional disorders. Drug development progres sed from a hit-and-miss approach to rational drug discovery in both laboratory design and natural -product surveys. Demand for

nutritional supplements and so-called alternative medicines created new opportunities and increased competition in the industry. C ontroversies emerged around adverse effects, notably regarding Vioxx in the US, and marketing tactics. Pharmaceutical companies became increasingly accused of disease mongering personal or social problems.

Product approval in the US

In the United States, new pharmaceutical products must be approved by the Food and Drug Administration (FDA) as being both safe and effective. This process generally involves submission of an Investigational new drug filing with sufficient pre-clinical data to support proceedin g with human trials. Following IND approval, three phases of progressively larger human clinical trials may be conducted. Phase 1 generally studies toxicity using healthy volunteers. Phase 2 can include Pharmacokinetics and Dosing in patients Phase 3 is a very large study of efficacy in the intended patient population. Phase 4 post-approval surveillance is also often required due to the fact that even the largest clinical trials cannot effectively predict the prevalence of rare side-effects. Post-marketing surveillance ensures that after marketing the safety of a drug is monitored closely. In certain instances, its indication may need to be limited to particular patient groups, and in others the substance is withdrawn from the market completely. Questions continue to be raised regarding the standard of both the initial approval process, and subsequent changes to product labeling (it may take many months for a change identified in post -approval surveillance to be reflected in product labeling) and this is an area where congress is active.

Product approval elsewhere

In many non-US western countries a 'fourth hurdle' of cost effectiveness analysis has developed before new technologies can be provided. This focuses on the efficiency (in terms of the cost per QALY) of the technologies in question rather than their efficacy. In England NICE approval requires technologies be made available by the NHS, whilst similar arrangements exist with the Scottish Medical Consortium in Scotland and the Pharmaceutical Benefits Advisory Committee in Australia. A product must pass the threshold for cost-effectiveness if it is to be approved. Treatments must represent 'value

for money' and a net benefit to society. There is much speculation that a NICE style framework may be implemented in the USA to ensure Medicare and Medicaid spending is focused to maximize benefit to patients and not excessive profits for the pharmaceutical industry. In the UK, the British National Formulary is the core guide for pharmacists and clinicians.

Industry revenues
For the first time ever, in 2006, global spending on prescription drugs topped $643 billion, even as growth slowed somewhat in Europe and North America. The United States accounts for almost half of the global pharmaceutical market, with $289 billion in annual sales followed by the EU and Japan. Emerging markets such as China, Russia, South Korea and Mexico outpaced that market, growing a huge 81 percent. US profit growth was maintained even whilst other top industries saw slowed or no growth. Despite this, "...The pharmaceutical industry is and has been for years the most profitable of all businesses in the U.S. In the annual Fortune 500 survey, the pharmaceutical industry topped the list of the most profitable industries, with a return of 17% on revenue. Pfizer's cholesterol pill Lipitor remains a best-selling drug worldwide. Its annual sales were $12.9 billion, more than twice as much as its closest competitors: Plavix, the blood thinner from Bristol-Myers Squibb and SanofiAventis; Nexium, the heartburn pill from AstraZeneca; and Advair, the asthma inhaler from GlaxoSmithKline. IMS Health publishes an analysis of trends expected in the pharmaceutical industry in 2007, including increasing profits in most sectors despite loss of some patents, and new 'blockbuster' drugs on the horizon. Teradata Magazine predicted that by 2007, $40 billion in U.S. sales could be lost at the top 10 pharmaceutical companies as a result of slowdown in R&D innovation and the expiry of patents on major products, with 19 blockbuster drugs losing patent.

HIMALAYA HEALTH CARE

HISTORY.
Mr. M. Manal, the founder of Himalaya, seventy nine years ago on his was to Burma, saw restless elephants being fed with a root to pacify them. The plant from which this was taken is Rauwolfia serpenting. Fascinated by the plans effect on elephants, he ha d it scientifically evaluated. After extensive research, serpina, the worlds first anti- hypertensive drug, was launched in 1934.

This legacy of researching nature forms the foundation of Himalayas operations. Himalaya uses the tools of modern science to create pharmaceutical grade ayurvedic products. We have pioneered research that has converted ayurvedas herbal traditions into a new range of proprietary formulations dedicated to healthy living and longevity. Today, these products have found acceptance with medical fraternities and serve the health and personal care needs of the consumers in over 65 countries.

COMPANY PROFILE.
MAKING OF AN INDIAN MULTINATIONAL.. Himalaya Drug Company was founded in 1930 by Mr. M. Manal with a clear vision to bring Ayurveda to society in contemporary form and to unravel the mystery behind the 5,000 year old system of medicine. This includes referring

to ancient ayurvedic texts, selecting indigenous herbs and subjecting the formulations to modern pharmacological, toxicological and safety tests to create new drugs and therapies. Seventy nine years ago..the founder researched on the plant and made the first ever anti- hypertensive drug, which was launched in 1934. This legacy of researching nature forms the foundation of Himalayas operations. Himalaya has pioneered the use of modern science to rediscover and validate ayurvedas secrets. Cutting edge technology is employed to create pharmaceutical- grade ayurvedic products. As a confirmation that Himalaya is dedicated to providing the highest quality and consistency in herbal care, the company was awarded an ISO 9001:2000 certification in 2003. Since its inception, the company has focused on developing safe, natural and innovative remedies that will help people lead richer, healthier lives. Today, Himalaya products have been endorsed by over 250,000 doctors around the globe and consumers in over 65 countries rely on Himalaya for their health and personal care needs.

MISSION.
Himalaya to be established as a science -based, problem-solving, head-to-heel brand, harnessed from natures wealth and characterized by trust and healthy lives. To develop markets worldwide with an in depth and long term approach, maintaining at each step the highest ethical standards. Respect, collaborate with and utilize the talents of each member of the Himalaya family and the local communities where Himalaya products are developed and consumed, to drive our seed -to-shelf policy and to rigorously adopt eco-friendly practices to support the environment we inhabit. Ensure that each Himalaya employee strongly backs the Himalaya promise to exceed the expectations of the consumer, each time and every time . Nothing less is acceptable. Location..largest tablet-coating unit in India.

Starting off operations in Dehradun way back in the 1930s, the company later spread its wings to Mumbai and across the country. In 1975, the company set up an advanced manufacturing facility in Makali, Bangalore, India, which today houses the corporate headquarters. In 1991, the company relocated its R&D facility to Bangalore. The manufacturing facility at Makali has the largest tablet- coating unit in the country. Over one crore tablets are punched ever y day. BRAND IDENTITYthe promise of good health, well-being and a prescription for good living. The Himalaya brand has much in common with the mountain range from which it draws its name. For centuries, the Himalayas have been an icon of aspiration, of mans quest to unlock Natures secrets. They represent purity and lofty ideals. The fact that the Himalaya s are the source of many products, make their brand name all the more apt. The Himalaya logo is a visual definition of its brand identity. The leaf th at forms the crossbar of the letter H evokes the companys focus on herbal healthcare. The teal green represents proximity to nature, while the orange is evocation of warmth, vibrancy and commitment to caring. The Himalaya brand carries with it the promise of good health and well-being. RESEARCH AND DEVELOPMANTeach Himalaya product undergoes years of primary research and clinical trials before it reaches the market. Himalaya has a well defined research and development policy. It states that no investment is too much when it comes to scientifically creating safe drugs and therapies. Himalayas history is one of innovation through research. The company believes that the ideal healthcare system lies in the synergy between ayurveda and modern science. Himalaya s constant endeavor is to create innovative products that satisfy the health care personal care requirements of contemporary living. Himalaya prides itself on being a completely research - oriented company. Indeed, it is this emphasis on R&D that allows Hi malaya to produce safe, efficacious and consistent remedies using ayurvedic principles. The R&D department is focused on product development, quality control and standardization. All products are derived through rigorous research and

produced in state-of-the art facilities. The products represent commitment to continuous investment in the best people, practices and technology. Himalaya does not support borrowed science or the practice of using published literature to substantiate efficacy claims. Each Him alaya product undergoes years of primary research and clinical trials before it reaches the market.

PRODUCTS
Himalayas products can broadly be categorized into three main ranges, i.e.:  Pharmaceuticals  Personal care  Animal care Pharmaceutical rangehealth maintenance, eye, cardiac and skin care, immunity booster and cough control. The medical ranges of products carry the Himalaya hallmark of research in ayurveda and capturing its benefits in formulations. Using modern research methodology and manufacturing processes. Himalaya has made available to people all over the world, an alternative method of treatment, which has no side effects. The medical range comprises over 35 products and is broadly classified into 4 categories viz:  Childrens health  Mens health  Womens health  General health Liv.52, Bonnisan, Himplasia, Menosan, Reosto, Tentex Royal are the most prominent among all these Himalayan brands is the Liv.50, a liver formulation, which is also the flagship brand of the company. Every one third of a second, one unit of Liv.50 is bought somewhere in the world. It is ranked number one in the hepatoprotective - lipotropic segment and number four among all the

pharmaceutical products in India. (ORG Marg, July 2003). Liv.50 celebrated fifty years in 2005. In 1972, continuing its tradition of introducing safe and natural remedied, Himalaya launched Bonnisan, a natural pediatric digestive tonic. A formulation based on years of research and clinical testing, the product found wide acceptance among doctors and mothers alike. The sweet tasting tonic became a trusted part of a babys growing up. After extensive work on the formulations and related clinical research, Himalaya introduced Monosan, a herbal non -hormonal product for menopausal women. Reosto, a comprehensive therapy for osteoporosis and himplasia, a unique product for benign prostatic hyperplasia were all new dimensions in BHP management. Some of the other well known products are Abana, Cystone, Gasex, Gerforte, Rumalaya, Diabecon, Mantat, Koflet, Himcolin, Septilin, Pilex, PureHands, est. Personal care products..Health care, Oral care, Hair care, Skin care and Baby care. Himalaya has used its wealth of knowledge and research in natural remedies, herbal remedies, to formulate a range of per sonal care products that cater to daily health needs ect. This range offers the goodness of natural solution for daily use by the complete family. The use of natural ingredients in personal care products has been practiced since the time immemorial, leadin g to increased use of herbs with a curative values. Modern research proves that herbs while being effective are also mild and soothing. Launched in 1999, Himalaya herbals is a range of natural herbal personal care products spanning Health care, Oral care, Hair care, Skin care and Baby care. The range comprises of fairness creams, soap-free face washes, facial cleansers, face toners, moisturizers, soap free shampoos, conditioners, hair -loss control, weight control, pimple control, foot care, multi -purpose creams, skin nutrients, dandruff control, anti- stress, digestive health, pain relievers, cough and cold relievers, oral care and baby care products. Pure herbs, Chyavanprasha and forest honey. Pure herb, the pure and concentrated strength of single herb in the right measure, stimulates and improves body functions.

Himalaya Pure Herbs is a range of individual herb extracts. Each pure herb is a result of strict monitoring from the farm of lab. At the lab, Himalayas proprietary techniques are used to extract the optimum value of each herb. This is followed by rigorous tests by the R&D team for potency and consistency. The action of these extracts benefits the body, irrespective of the individuals body constitution state and health and metabolic functions. Eve ryone can benefit from the goodness of these herbs, irrespective of age, sex, body type, or other health related factors. The Pure Herb range consists of the following:  Amalaki: Useful in treating cough, cold, sore throat anti respiratory tract infections. It protects cells form free radical damage and is an excellent anti-oxidant.  Arjuna: The herb improves blood circulation and is used as a tonic for the heart..  Ashvagandha: Commonly known as winter cherry, this herb acts as an anti-stress agent that imparts a sense of well- being and helps in coping with lifes daily stresses.  Brahmi: A well- known herb that helps in improving general alertness.  Karela: Commonly known as bitter gourd, it is known to aid in the metabolism of carbohydrates.  Lasuna: Commonly known as Garlic, It helps in controlling the excess conversion of lipids and cholesterol.  Neem: A popular herb, Neem has anti-bacterial, anti-fungal and bloodpurifying properties. It is very useful in skin disorders and helps maintain a healthy, beautiful and glowing skin.  Shuddha Guggulu: It regulates fat metabolism and helps remove excess cholesterol from the body.  Shallaki: This herb removes or treats joint problems.  Tagara: It has a mild Sedative properties, which are useful for insomnia and sleep disorders.  Triphala: A digestive aid compound and a bowel cleanser.  Tulasi: It has anti-microbial and anti-inflammatory properties, and is useful in respiratory tract infections like dry or wet cough, cold and sore throat.

Chyavanaprasha: Himalaya Chyavanaprasha is a unique combination of ancient wisdom and modern science. Its natural ingredients are tested to ensure the highest level of purity. Honey: Pure unadulterated Himalaya Forest Honey is sourced from Indias untouched forests. Animal health.bringing its expertise in health care to animal care.leveraging R&D strengths in creating natural drugs and therapiesdaily care for sensitive pets like cats and dogs. The Himalaya legacy extends to animals as well. The company offers well researched, safe animal health products harnessed from natures wealth to

alleviate that suffering of animals. Also helps in increasing their health and productivity. Worldwide there is a growing concern about the presence of chemical contaminants in dairy, meat and poultry products. Taking a cue, the Himalaya drug company has extended its expertise to create Ayurvedic drugs and therapies for animal health care. Concern for animal health care has promoted Himalaya to launch the Himalayan animal range of products for commercial livestock in july 1998. The products in this range alleviate the suffering of animals and improve their health. This result in healthy livestock whose animal products are safe for human consumption. Realizing the importance of companion animals in todays life, Himalaya launched the Companion Animal Care Range of range of products in 2000.

AYURVEDA AT HIMALAYAS
Ayurveda or the science of life is an ancient, holistic system for diagnosis and treatment, perhaps the oldest system of medicine know to humanity. Fundamental to ayurveda is the use of well -balanced combinations of plant and other agents in synergistic formulas. At Himalayas, they have pioneered the use of modern science to rediscover and validate Ayurvedas secrets. They employ cut ting edge research to create pharmaceutical-grade ayurvedic products. Natural, effective and safe, these products have definitely helped thousands of people live healthier and richer lives. Their focus is basically on wellness and on helping people get hea lthy and stay fit. Here at Himalayas research begins with raw herbs chosen from traditional texts and from observations and experiences of indigenous plants. Our team of herbalists study texts, both traditional and scientific, exhaustively for relevant data. A few herbs of promising activity are short listed. Polyherbal formulations of these short listed herbs are made in order to provide a wider scope of pharmacological and cosmetic activity. Multicentred, double -bling trials according to WHO criteria further assist in scientifically validating the formulations.

Today the company has created a state -of-the art and research and development facility at Bangalore and it is one of the best available, for traditional medicine ever in the world. Over 40 qualifie d doctors and scientists are constantly at work, developing and evaluating new drugs and therapies. In the 1930s, Himalaya developed a pioneering experimental herb farm, which grew rare endangered herbs for commercial use. The company today has in addition to this an unparalleled database of dedicated herb suppliers, a herbarium and an agrotech division and a nursery. The standardization of herbal medicine is a more daunting challenge than the processes used for allopathic medicine. The tabletting of the a yurvedic medicine is more arduous, with multiple granulating, processing and coating variables. Today Himalaya manufacturing unit has the largest coating capacity in Asia. Alternative methods of treatment are made available by this very famous company all thanks to the founder Mr. M. Manal. His job is definitely credible cause today most of the problems have a natural treatment.

Biocon limited

Our ability to continuously scale new heights across the biopharmaceutical value chain enables us to realise the promise of future therapeutics." -Kiran Mazumdar-Shaw, Chairman & Managing Director

Biocon is a fully integrated healthcare company that delivers innovative biopharmaceutical solutions. From discovery to development and commercialisation, we have the defining science, cost -effective drug development capabilities and significant manufacturing capacity to move ideas to market. Leveraging Indias globally competitive cost base and exceptional scientific people resource, we are advancing our in-house R&D programs, while also providing custom and clinical research services to international pharmaceutical and biotechnology majors through our subsidiary companies, Syngene and Clinigene. Biocon has rapidly developed a robust drug pipeline , led by monoclonal antibodies and several other molecules at exciting stages in the biopharmaceutical value chain. With the successful commercial launch of our first anti-cancer drug and several promising discovery partnerships in the clinic, we remain committed to scaling new heights in frontier science and achieving new milestones in affordable medicine.

Company History:
Biocon was incorporated as Biocon India Private Limited on November 29, 1978 under the Companies Act. The word 'Private' was deleted f rom our name under the provisions of Section 43A(2) of the Companies Act with effect from July 1, 1995. Thereafter Biocon was converted to a private limited company under the provisions of Section 43(2A) of the Companies Act with effect from December 21, 2000. It was reconverted into a public limited company on June 18, 2001. The name of Biocon was changed from Biocon India Limited to Biocon Limited and a fresh certificate of incorporation consequent on change of name was issued by the ROC on November 19, 2003.

Main Objects of the Company Our main objects as contained in our Memorandum of Association are:

To carry on the business of manufacturing, processing, distilling, compounding, formulating, acquiring, buying, selling, importing, exporting and dealing in all enzyme products from animal, microbial, plant sources, products from fish sources, vegetable and herb extracts, agricultural products including cattle feed, and all chemicals heavy or fine, organic, inorganic, biological or any other formulations, derivatives and compounds thereof from mineral origin or from other chemicals or from by-products or waste products of other trades and industries and other branded preparations and compounds, derivatives and formulations thereof and consumers products base d thereon, pharmaceutical specialities, surgical specialities, cosmetics, germicides, detergents and acids. To establish and run an extraction plant for the extraction of oils, colouring matters, crude drugs and other extracts from seeds, barks, cakes, flo wers, plants in all forms for the production of natural colourants, alkaloids, steroids, other drugs and medicines and other products. To cultivate, crush, utilise, buy sell and deal in seeds, substances, and plants of every description. The main objects c lause and the objects incidental or ancillary to the main objects of the Memorandum of Association of Biocon enable us to undertake our existing activities and the activities for which the funds are being raised through this Issue.

History....
November 29, 1978 Biocons Founding Day - the start of a bio revolution in India. Over the years, Biocon has evolved from an enzyme -manufacturing company into a fully integrated biopharmaceutical enterprise. Today, we leverage a formidable combination of proprietary fermentation technologies and research skills to develop affordable therapy for unmet medical needs. Biocon India is incorporated as a joint venture between Biocon Biochemicals Ltd. of Ireland and an Indian entrepreneur, Kiran Mazumdar-Shaw 1979 Biocon is the first Indian company to manufacture and export enzymes to USA and Europe 1989 Unilever plc. acquires Biocon Biochemicals Ltd. in Ireland and merges it with its

subsidiary, Quest International, Biocon is the first Indian biotech company to receive US funding for proprietary technologies
1990 Biocon scales up its in-house research programme, based on a proprietary solid substrate fermentation technology, from pilot to plant level 1993 Biocon's R&D and manufacturing facilities receive ISO 9001 ce rtification from RWTUV, Germany 1994 Biocon establishes Syngene International Pvt. Ltd. as a Custom research Company (CRC) to address the growing need for outsourced R&D in the pharmaceutical sector 1996 The commercial success of Biocon's proprietary fe rmentation plant leads to a 3-fold expansion Biocon leverages its technology platform to enter biopharmaceuticals and statins 1997 Biocon spearheads initiatives in human healthcare through a dedicated manufacturing facility 1998 Unilever inks a deal with ICI to sell its specialty chemicals division of which Quest International is a part. Unilever agrees to sell its shareholding in Biocon to the Indian promoters. Biocon becomes an independent entity 2000 Biocon commissions its first fully automated submerged fermentation plant to produce specialty pharmaceuticals Biocon establishes Clinigene, India's first Clinical Research Organisation (CRO) to pursue clinical research and development 2001 Biocon becomes the first Indian company to be approved by U S FDA for the

manufacture of lovastatin, a cholesterol -lowering molecule Biocon's proprietary bioreactor, PlaFractor is granted a US 2001 and world -wide patent
2002 Clinigene's clinical laboratory is the first in India to receive CAP accreditation 2003 Biocon is the first company worldwide to develop human insulin on a Pichia expression system 2004 Biocon creates a buzz in the stock market in March 2004 with its hugely successful IPO. Day 1 on the bourses closes with a market value of $1.11 billion, making Biocon only the second Indian company to cross the $1 billion mark on the first day of listing. Syngene establishes new research centre Biocon Limited, announces the launch of INSUGEN , the new generation bio-insulin, manufactured in Asia's largest human insulin plant. Biocon Limited and Vaccinex, Inc. announce a broad strategic partnership to discover and co-develop at least four therapeutic antibody products. 2005 Biocon signs a commercial agreement for supply of insulin API to Asia, Africa and the Middle East. 2006 Biocon inaugurates Biocon Biopharmaceuticals, India's largest multi -product Biologics facility at Biocon Park Biocon inaugurates Biocon Park, India's largest integrated biotechnology hub, comprising an integrated cluster of resear ch laboratories and manufacturing facilities spread across 90 acres in KIADB (Karnataka Industrial Areas Development Board) industrial estate. Biocon announces a licensing agreement with Bayer HealthCare (BHC) for the exclusive marketing and trademark rig hts for INSUGEN for the Chinese market. Syngene and Innate Pharmaceuticals AB, Umea, Sweden conclude a cooperation agreement to jointly develop, manufacture and market virulence blockers to counteract bacterial diarrhoeal disease. Biocon launches India's first anti-cancer drug BIOMAb EGFR .

2007 Biocon and Abu Dhabi based pharmaceutical company Neopharma sign an MOU to establish a JV to manufacture and market a range of biopharmaceuticals for the GCC countries (Gulf Cooperation Council). Biocon grants exclusive license to Ferozsons Laboratories Limited for marketing BIOMAb EGFR in Pakistan. Biocon announces the launch of its Nephrology Division and a comprehensive portfolio of renal therapy products. Syngene enters into a research partnership with Bristol-Myers Squibb and completes the ground breaking ceremony of new research facility at Biocon Park. Biocon signs Memorandum of Understanding with Deakin University, Australia. To establish Deakin Research Institute in Bangalore Biocon divests enzymes division for USD 115 million to Novozymes. Biocon business portfolio to focus on biopharmaceuticals Biocon and Abraxis BioScience, announce an agreement wherein Abraxis will license the right to develop a biosimilar version of G -CSF (Granulocyte-Colony Stimulating Factor) in North America and the European Union. Biocon and Neopharma sign an MoU to establish Neobiocon, a joint venture company in Dubai's biotechnology and research park, Dubiotech. Biocon and Abraxis BioScience Inc., announce a licensing agree ment for the commercialization of ABRAXANE (paclitaxel protein-bound particles for injectable suspension) (albumin-bound) in India. Biocon presents the results of Phase 1 studies on its oral insulin product, IN -105 at the European Association for Study of Diabetes (EASD) meeting held at Amsterdam.

2008 Biocon acquires a 70% stake in German pharmaceutical company, AxiCorp GmbH for a consideration of 30 Million Biocon launches a Safety Device in the form of pre -filled syringes for two of its life saving products, GCSF (granulocyte -colony stimulating factor) and EPO (Erythropoietin) in collaboration with Safety Syringes Inc. ERYPRO Safe and NUFIL Safe are the first two drugs that will marketed using this novel device with other injectable products to follow in the future. Biocon and Abraxis Bioscience launch ABRAXANE in India for treatment of

Breast Cancer. Biocon is ranked among the top 20 global biotechnology companies (Med Ad News). Biocon is the 7th largest biotech employer in the world (Med A d News). Biocon announced the results of an ascending dose study on its oral insulin drug (IN-105) at the European Association for the Study of Diabetes (EASD) meeting in Rome. NeoBiocon and Abraxis Bioscience launch Abraxane in The UAE for the treatment of Breast Cancer.
2009 Biocon's Syngene partners with Sapient Discovery to expand integrated drug discovery offerings Biocon's Syngene and DuPont Crop Protection Forge Alliance Partnership Bristol-Myers Squibb and Biocon's Syngene open new R&D Facility at Biocon Park Biocon launches BASALOG - long lasting basal insulin for Type 1 & Type 2 Diabetics Biocon inks partnership with ISB to launch the Biocon Cell for Innovation Management Biocon Announces Strategic Collaboration with Mylan to enter the Global G eneric Biologics Market Biocon Limited and Amylin Pharmaceuticals entered into a Global Development and Commercialization Agreement for a Novel Peptide Hybrid. The Program will focus on the potential treatment of diabetes.

Mission:
To be an integrated biotechnology enterprise of global distinction.

Essential to this mission is excellence in: - Intellectual asset creation through discovery, research and development. - State-of-the-art manufacturing capabilities - Internationally benchmarked quality and regulatory systems - New medical insight through disease specific clinical research - Customer relationship through outstanding products and services - Human resource development through training, mentoring and empowering. - Management of research and business partnerships

People:
An organisation is as dynamic and effective as its people. At Biocon, the vast experience of our distinguished Board of Directors and the strategic focus of the Key Management Team steer us towards our goals. They are amply supported by a 3000-strong team of exemplary bio scientists, engineers and business managers who build our intellectual capital and drive our growth. The Board of Directors determines strategic business imperatives and mentors the achievement of our corporate goals. The Key Management Team focuses on driving innovative work practices and higher process maturity across the organisation. It executes its role in corporate governance through regular reviews of our financial performance and critical business issues.

The Innovation Matrix: A Strategic Framework

To navigate the challenges of innovation in the next decade they have adopted a well-defined strategic framework that will transform scientific discoveries into advances in human healthcare and generate incremental value for their shareholders. The Innovation Matrix is a four-dimensional endeavour which extends in to the realms of the known and the unknown. Creativity in the known realm builds on existing knowledge and can result in two types of innovation: INCREMENTAL and EVOLUTIONARY. Creativity that challenges unknown boundaries and creates new knowledge is EXPERIMENTAL and TRANSFORMATIONAL in its impact. A portfolio that covers all four spheres enables Biocon to sustain innovation in the short, medium and long term. Our biosimilar insulin, an outcome of incremental innovation, is one of the worlds most affordable therapies for insulin dependent diabetes. Bio -generic monoclonal antibodies are forming the core of our evolutionary innovation strategy. In the more challenging area of experimental innovation, Biocon is at the cutting edge. They are developing conjuga ted antibodies with a US Biotech start-up, IATRICa, to potentially deliver therapeutic cancer vaccines. They are also pursuing a path of breakthrough innovation through phase III human clinical trials to develop the worlds first Oral Insulin. Biocon is th us rapidly moving towards commercializing novel biologics with a "Made in India" label .

BUSINESS:

Biocons fully integrated business model spans the entire drug value chain, from pre-clinical discovery to clinical development and through to commercialisation. Our businesses in custom research (Syngene), clinical development (Clinigene) and biopharmaceuticals (Biocon) provide multiple revenue streams to balance risk, drive innovation, deliver products and accelerate growth. As they increase the complexity and scope of our own R&D and manufacturing operations, especially in new product discovery and development, they believe our custom and clinical research services will continue to offer important synergies.

Syngene: Pre-Clinical Discovery:

Biocons custom research organisation, Syngene, offers high value discovery and development services, from target identification and validation to small molecule and library synthesis. With our reputation for meticulous IPR protection, we provide pharmaceutical and biote chnology majors customised solutions in the areas of synthetic chemistry and molecular biology.

Clinigene: Clinical Development:

Biocons clinical research organisation, Clinigene, specialises in Phase I -IV clinical trials and studies, using well-characterised clinical databases in diabetes, oncology, lipidemia and cardiovascular diseases. We offer these

services at our CAP and NABL accredited Central Reference Laboratory and a state-of-the-art Bioavailability and Bioequivalence (BA/BE) Centre.

Biocon: Commercialisation:
Biocon has an impressive track record of co mmercialisation capabilities. They have brought to market a considerable portfolio of biopharmaceuticals, led by our blockbuster Statins. The commercialisation of Insulin, Immunosuppressants and a range of Bio generics demonstrates our highly advanced process development and manufacturing expertise. Under rapid progress are two challenging collaborative projects for the development of novel medicine, including Oral Insulin and T1h. Biocon also m arkets a basket of branded formulations in India, among them INSUGEN , BIOMAb EGFR and EPO.

Key Facts: General Information

Biocon Limited is a fully integrated biopharmaceutical company focused on biopharmaceuticals, custom research and clinical researc h.

Subsidiary Companies:
Syngene International Limited is a custom research organisation offering synthetic chemistry and molecular biology services for early stage drug discovery and development. Clinigene International Limited is a clinical research organisation offering Phase I-IV clinical trials and studies for novel/generic molecules to international pharmaceutical majors. Biocon Biopharmaceuticals Private Limited (BBPL) is a joint venture with CIMAB to develop and market a range of monoclonal anti bodies and cancer vaccines. AxiCorp GmbH is a Friedrichsdorf (Germany) based pharmaceutical marketing company and is amongst the fastest growing in Europe. Biocon Limited acquired a majority stake in AxiCorp GmbH (70%) in February, 2008. NeoBiocon FZ LLC is a research and marketing pharmaceutical company based in Abu Dhabi. Incorporated in January 2008, NeoBiocon is a 50:50 joint

venture with Dr. B.R.Shetty, Managing Director of NeoPharma, and Abu Dhabi. Biocon is the 4th largest producer of Recombinant Human Insulin using proprietary technology. Biocons Insulin is produced by DNA recombinant technology using a yeast, Pichia pastoris . In clinical trials conducted by Biocon, EPO has demonstrated consistent therapeutic efficacy and safety. The product has been validated by many countries globally. In India, it is marketed under the brand name ERYPRO. In clinical trials conducted by Biocon, EPO has demonstrated consistent therapeutic efficacy and safety. The product has been validated by many countries globally. In India, it is marketed under the brand name ERYPRO. Biocon has developed the only recombinant streptokinase that has shown therapeutic equivalence in a comparative clinical trial. Biocon is the first Indian company to achieve the distinction of deve loping and manufacturing monoclonal antibodies in accordance with stringent international guidelines. Recently, the company launched the worlds first humanized anti EGFR monoclonal antibody, "Nimotuzumab" for the treatment of Head/Neck cancer after completing a successful clinical trial. The product is being manufactured at Biocon's fully integrated state -of-the-art biologics facility in Bangalore. Further, clinical trials are on to assess the therapeutic potential of this product in glioma (brain-tumours) and NSCLC (lung cancer). In addition, Biocon is developing monoclonal antibodies for hematological malignancies, inflammation and autoimmune disorders.

Technology:
"Biocon's continuous investment in infrastructure and technology is aligned with its R&D focus to develop and commercialize novel therapeutic products" - Prasad B.S.V. General Manager, Production The breadth and scale of Biocons manufacturing technologies has dovetailed our transition from a niche player in specialty enzymes to a global pro vider of biopharmaceuticals spanning small molecules, recombinant proteins, peptides and monoclonal antibodies. These technologies encompass large -scale

microbial fermentation, chemical synthesis, mammalian cell culture, protein & antibody purification, aseptic formulation and fill-finish. Our manufacturing facilities are designed to stringent cGMP standards and are supported by state of-the-art process development and quality control laboratories and an efficient service infrastructure. We currently operat e on two sites in Bangalore, both of which have successfully passed inspection by local and international regulatory agencies, including US FDA and EDQM.

Research & Development

"We aim to develop novel biopharmaceuticals by leveraging our exceptional scientific talent pool and developmental capabilities." - Harish V. Iyer, Vice President, R&D

Biocons discovery-led R&D focuses on the entire drug development pathway from process development, to non-clinical and clinical research. The depth and breadth of our technological and scientific expertise enables us to develop new and affordable therapeutics for the worlds most debilitating diseases. R&Ds ability to leverage frontier science, from cloning right through to identifying novel clinical biomarkers, continues to advance Biocons reputation as a leading innovator company. They have on our R&D team, outstanding scientists from the best institutes around the world. Our hard-to-find skill sets, continuous interaction with international thought leaders and participation in technical programs to enable knowledge creation, positioning Biocons R&D for challenging biopharmaceutical development.

Principal Domains Biocon's R&D efforts are directed towards biopharmaceutical drug development through 3 principal domains:

- Process Sciences - Non-clinical Research - Clinical Research

Process Sciences: Biologicals Our biological development group is very strong and has developed processes for multiple products, including Insulin, Streptokinase, GC SF and BIOMAb EGFR. In this department, we develop cell lines, fermentation/purification/scale-up/ formulation processes and analytical methods to meet global regulatory standards. Small Molecules Fermentation Leveraging our core fermentation expertise, we are continuously researching and developing a range of microbial -derived pharmaceutical products for disease areas spanning cardiovascular, diabetes, nephrology, inflammatory and oncology. The processes we develop are robust and scalable, from fermenter sizes, 1 ltr to 125,000 ltrs. Chemistry Small molecule pharmaceuticals play an important role in Biocon's R&D programs. We leverage our expertise in chemical synthesis to improve manufacturing productivity for existing products and introduce new generics into our pipeline. Under development are several generics for the anti -infective, oncology and immunosuppressive domains. Non-clinical Research : Our scientists undertake toxicology and pharmacology studies to establish proof of concept and provide assuranc e of safety in molecules under investigation. We plan, develop and execute studies based on global regulatory requirements.

Clinical Research: We develop clinical protocols for several novel drugs in our pipeline. We conduct well-designed studies which include assessment of novel biomarkers to derive maximum information about the safety and efficacy of our molecules in

clinical trials. We interact with clinical researchers and physicians in major clinical centers globally to use up -to-date clinical knowledge in designing and analyzing our clinical studies.
Skill Base - Microbiology and Strain Improvement - Biochemical Engineering - Gene Cloning and Expression - Fermentation Development - Recombinant microbial and mammalian cell culture - Synthetic Organic Chemistry - Process Development - Biologicals and Small Molecules - Biomolecular characterization - Oral and parenteral formulation development - Non Clinical development - Clinical development

Intellectual Property:
Biocon is focused on developing cutting edge intellectual property as a core value differentiator. Biocons patent portfolio totals close to 942 applications worldwide with over 182 granted patents; covering technology areas of fermentation, protein purification, drug delivery systems an d biotherapeutic molecules. IP analysis is a tool used to actively support R&D and marketing in its scientific quest and marketing strategies respectively. As Biocon continues to strengthen its knowledge base in small molecules, recombinant proteins and antibodies, through co-development and research collaborations with strategic global partners, the IP generated is either shared or owned by Biocon. Adequate protection of the intellectual output generated by R&D entails strategic decisions for filing patents at the appropriate time and place with effective cost benefit ratio. The commercial potential of this intangible asset is harnessed by licensing opportunities and its exclusive use.

Intellectual Profile of 4000+ Personnel:

Milestones:
- Biocon is India's first biotechnology company, established in 1978 - Biocon is India's first biotechnology company to export microbial enzymes to USA and Europe - Biocon is the first biotechnology company to receive ISO 9001 certification in India - Syngene, a Biocon subsidiary, is India's first custom research company in drug discovery - Biocon is the first Indian company to be approved by US FDA for the manufacture of lovastatin, a cholesterol-lowering molecule - Biocon's proprietary bioreactor, the PlaFractor, receives a US patent - Biocon's subsidiary, Clinigene, has India's first CAP (College of American Pathologists) accredited clinical research laboratory, setting the benchmark for laboratories in India

- Biocon is awarded the Biotech Product and Process Development and Commercialisation Award, 2001 by the Department of Biotechnology, Ministry of Science and Technology, Government of India - Syngene is awarded the Certificate of Excellence for Export Achievement by the Government of India, for two consecutive years 2002-2003 - Biocon is the first company, globally to manufacture human insulin, INSUGEN, using a Pichia expression system, 2004 - Biocon launches BIOMAb EGFR India's first anti-cancer, therapeutic Monoclonal Antibody-based drug for treating solid tumours of epithelial origin, such as head & neck cancers, 2006 - Biocon divests its enzymes division to Novozymes, focuses on biopharmaceuticals, 2007 - Syngene receives "BioServices Company of the Year", BioSpectrum Awards, 2007 - Biocon's BIOMAb EGFR wins "Product of the Year", BioSpectrum Awards, 2007 - Biocon acquires a 70% stake in German pharmaceutical company, AxiCorp GmbH for a consideration of 30 Million, 2008 - Biocon launches a Safety Device in the form of pre-filled syringes for two of its life saving products, GCSF (granulocyte - colony stimulating factor) and EPO (Erythropoietin) in collaboration with Safety Syringes Inc. ERYPRO Safe and NUFIL Safe are the first two drugs that will marketed using this novel device with other injectable products to follow in the future, 2008 - Biocon and Abraxis Bioscience launch ABRAXANE in India for treatment of Breast Cancer, 2008

- Biocon is ranked among the top 20 global biotec hnology companies (Med Ad News), 2008 - Biocon is the 7th largest biotech employer in the world (Med Ad News), 2008 - Biocon announced the results of an ascending dose study on its oral insulin drug (IN-105) at the European Association for the Study of Diabetes (EASD) meeting in Rome, 2008 - NeoBiocon and Abraxis Bioscience launch Abraxane in The UAE for the treatment of Breast Cancer, 2008 - Biocon's Syngene partners with Sapient Discovery to expand integrated drug discovery offerings, 2009 - Biocon's Syngene and DuPont Crop Protection Forge Alliance Partnership, 2009 - Bristol-Myers Squibb and Biocon's Syngene open new R&D Facility at Biocon Park, 2009 - Biocon launches BASALOG - long lasting basal insulin for Type 1 & Type 2 Diabetics, 2009 - Biocon inks partnership with ISB to launch the Biocon Cell for Innovation Management, 2009 - Biocon Announces Strategic Collaboration with Mylan to enter the Global Generic Biologics Market, 2009

Products & Services:

Biocons impressive range of products and partnered services continue to build a robust pipeline of biosimilar and discovery -led biological programs in oncology, nephrology, diabetes and autoimmune diseases.

- Sandeep Rao, Vice President, Business Development

Over the years, we have systematically leveraged our technology platforms from enzymes to small molecules to recombinant proteins and antibodies. Through partnerships and alliances, Biocon has strategically moved up the value chain from supplying pharmaceutical b ulk actives to developing proprietary molecules and our own branded formulations. In the areas of custom and clinical research services, collaborative partnerships with complementary biotechnology and pharmaceutical companies are yielding rich results. We believe these partnerships will positively impact any and all phases of our discovery portfolio. Differentiation and a high degree of innovation distinguish all our products and services. Combined with Indias value advantage, they enable us to develop and deliver novel and affordable therapeutics for global unmet medical needs.

Products:
Biopharmaceuticals: Active Pharmaceutical Ingredients (APIs):

- Anti-Diabetic Agents - Anti-Inflammatory Agents - Anti-Oxidants - Cardiovascular Agents - Anti-Obesity Agents - Digestive-Aid Enzymes - Anti-Hypertensive Agents - Haemostatic Agents - Hepatoprotective Agents - Immunosuppressants - Gastro-Intestinal Agents - Nutraceuticals
Biologicals:

- Insulin - Streptokinase

- EPO - GCSF - Monoclonal Antibodies

Branded Formulations: Oncology:

- BIOMAb EGFR - NUFIL safe (Pre-filled Syringe) - NUFIL (Vials) - Abraxane for injectable suspension
Nephrology:

- ERYPRO safe (Pre-filled Syringe) - TACROGRAF - RAPACAN - CYCLOPHIL ME - RENODAPT - RENODAPT - S - CeRACaL
Cardiology:

- STATIX - STATIX-F - STATIX-EZ - BESTOR - TELMISAT - TELMISAT-H - ZARGO - ZARGO-H - ZIGPRIL - ACTIBLOK-IPR - BRADIA - CLASPRIN - THINRIN - MYOKINASE

- CLOTIDE - DYNALIX
Diabetology:

- INSUGEN-R - INSUGEN-N - INSUGEN-30/70 - INSUGEN-50/50 - BASALOG 3ml, 10 ml - BLISTO 1, 2 & 4 - BLISTO-MF 1, 2 & 4 - METADOZE-IPR 500 & 850 - PIODART - PIODART-MF - TriGPM - ZUKER-MF - GABIL - GMAB Plus - OLISAT

Services:
Licensing:

Biocon collaboratively develops MAbs (Monoclonal Antibodies) and other novel drug delivery systems-based proteins either in-house or in partnership with other companies.
Contract Manufacturing:

Biocon leverages its India cost base together with its extensive expertise and technology platforms to offer competitive, high quality, custom manufacturing services to a global clientele.

Research Services:

Custom Research Syngene

Chemistry - Medicinal Chemistry - Library Synthesis - Process R&D - Custom Manufacturing - Analytical Services - Polymer Chemistry

Biology - Molecular Biology - Protein Sciences - Cell Lines Services - Assay Services - eADME/T&PK Studies - Biologics

Clinical Research Clinigene

- Clinical Operations - Clinical Development - Clinical Data Management and Biostatistics - Regulatory Services - Human Pharmacology unit - Bioanalytical Research Laboratory - Central Laboratory

Quality:
Biocon follows good manufacturing, laboratory and documentation practices that ensure consistent high quality results. Our state -of-the-art analytical facilities monitor and maintain strict quality of our products, processes and services, consistently meeting Ph.Eur, USP and other national and international quality standards.

Accreditations & Approvals Internal Quality and EHS Accreditations

- Received ISO 9001 accreditation in 1993 and recertification for ISO 9001:2008 - Implemented an integrated Environment, Health and Safety management system - ISO 14001:2004 certification - OHSAS 18001:2007 certification

Facility Approvals
y

y y y y y y y y y y

USFDA approved facilities; Biocon Campus (2000, 2003, 2006) and Biocon Park (2006) Recent USFDA inspection in January 2009 for both facilities. Customers received their ANDA approval referring to thes e sites. EUGMP Certification for Biocon Campus (2004, 2005, 2006) and Biocon Park (2006). Recent EUGMP inspection for Biocon Campus in 2008. Mexican Health Authority approval for both Biocon Campus and Biocon Park facilities in 2006. Cuban approval for both Biocon Campus and Biocon Park facilities in 2007. Jordan FDA approval for both Biocon Campus and Biocon Park facilities in 2008. Anvisa (Brazil) approval for both Biocon Campus and Biocon Park facilities in 2008. The Iran Ministry of Health inspected and approved oral formulations of Immunosuppressant category. Nepal Health Authority inspected and approved BioMab facility. UAE ministry of Health granted facility approval for both Biocon Campus and Biocon park facilities in 2007 National Agency of Food and Drug Control, Indonesia inspected both facilities. Received a number of CoPP (Certificate of a Pharmaceutical Product) certificates as per WHO norms. Schedule M GMP Certification for both Biocon Campus and Biocon Park facilities as per D&C act, India
Quality Commitment:

- To maintain the highest quality standards for all Biocon products - To develop novel analytical methods for new products - To maintain and monitor quality systems within Biocon according to national and international quality standards. - To register Biocon's drug products in many more regulated markets. - To file regulatory dossiers for new products - To ensure personnel validation through training and evaluation - To support customers with their technical and regulatory queries

AWARDS:

Kiran Mazumdar-Shaw has received several awards on behalf of Biocon and in her personal capacity as one of India's leading business entrepreneurs.
Biocon:

2009 Biocon wins Bio-Excellence Award for Outstanding Achievement in the Healthcare Sector at Bangalore Bio Syngene wins Bio-Excellence Award for outstanding achievement in the Biotech Service Sector at Bangalore Biocon's BIOMAb EGFR wins "Product of the Year", BioSpectrum Awards Biocon wins prestigious BioSingapore Asia Pacific Biotechnology Award for Best Listed Company Biocon bags IDMA "Best Patent of the year" award

2008 Biocon is ranked among the top 20 global biotechnology companies (Source: Med Ad News, June 2008) Biocon is the 7th largest biotech employer in the world (Source: Med Ad News, June 2008)

2007

Syngene receives "BioServices Company of the Year", BioSpectrum Awards Biocon's BIOMAb EGFR wins "Product of the Year", BioSpectrum Awards
2006

Best IT User Award in the Pharmaceutical Sector, NASSCOM

2004

India's first and No. 1 biotech company with a global ranking of 16* (Source: Biospectrum July 2004) Biocon in India's top 5 Life Sciences companies (at close of trade as on July 30, 2004) Best Reinvention of HR Function Award, Indira Group, Mumbai Best Employer Of India Award, Hewitt
2003 Bio-Business Award for bio-entrepreneurship, Rabo India Express Pharma

Pulse Award for excellence in the pharmaceutical industry

2001 Biotech Product, Process Development and Commercialisation Award, Department of Biotechnology, Ministry of Science and Technology, Government of India 2000 Technology Pioneer Recognition, World Economic Forum 1985

Export Performance Award, Karnataka State Financial Corporation (KSFC) National Award for Best Small Industry, Government of India
Kiran Mazumdar-Shaw: 2009 Honoured with 'Nikkei Asia Prize' for Regional Growth Honoured with 'Express Pharmaceutical Leadership Summit Award' for Dynamic Entrepreneur 2008 Honorary Degree of Doctor of Science from the Heriot -Watt University, Edinburgh Honorary Degree of Doctor of Science from the University of Glasgow 2007 Honoured with the, 'Veuve Clicquot Initiative For Economic Development For Asia' award Honorary Doctor of Technology, University of Abertay, Dundee (UK) 2005 Padmabhushan Award , one of India's highest civilian honours, from the President of India, Dr. APJ Abdul Kalam Honorary Degree of Doctor of Science (Honoris Causa) from Indian Institute of Technology, Roorkee.

The Indian Chamber of Commerce Lifetime Achievement Award Honorary Doctorate from Manipal Academy of Higher Education (MAHE), in recognition of outstanding achievements in biotechnology and industrial enzymes. Rotary Award for Corporate Citizenship Business Leader of the Year Award - Biotechnology, Chemtech-Pharma Bio Awards

2004 Honorary Doctorate of Science from Ballarat University, in recognition of pre eminent contribution to the field of biotechnology Business Woman Of The Year Award, The Economic Times 2003

Alumni High Achiever Award, Australian Alumni Association

2002 Karnataka Rajyotsava Award for pioneering biotechnology in India, the Government of Karnataka Best Entrepreneur: Healthcare & Life Sciences Award, Ernst & Young Sir M. Visvesvaraya Memorial Award for contribution to biotechnolo gy, Federation of Karnataka Chambers of Commerce & Industry (FKCCI) 1999 Woman of the Year Award, International Women's Association, Chennai 1998 Golden Jubilee Felicitation, Mount Carmel College, Bangalore 1989 Padmashri for pioneering biotechnology in India, Government of India 1987

Outstanding Young Person Award, Jaycees India

1983

Best Small Scale Industry in Karnataka Award, Rotary Club, Karnataka Best Model Employer Award, Rotary Club, Karnataka Outstanding Contribution Award, AWAKE
1982 Best Woman Entrepreneur Award, National Institute of Marketing Management, India

Investors:
"We are committed to delivering value to all our stakeholders. By leveraging our proprietary products and technologies we will achieve robust growth and sustained financial performance." - Murali Krishnan K.N, President, Finance

Welcome to Biocon's Investor Relations. Here, we feature comprehensive information on all aspects of the Company that concern and interest the investor. From access to financial data, stock quot es, FAQs and more, we give our existing and potential investors all relevant data and updates on corporate governance and the overall progress of the company.

Media
"We advocate transparency and open channels of communication within the organisation and externally". - Paula Sengupta, Head Corporate Communications

Welcome to Biocon's Press Room. Here we feature a comprehensive press kit, news updates, press releases, brochures and other media resources. This section has been designed to provide reporte rs easy access to all the information needed on Biocon.

CORPORATE SOCIAL RESPONSIBILITY:

"We focus on disease prevention, improved healthcare facilities and child education. This three-pronged strategy will go a long way in improving the lives of India's rural communities." Rani Desai, Head Biocon Foundation

At Biocon, we believe our investment in better healthcare must go beyond developing new medicine to making medical assistance accessible to less advantaged, rural communities of India. Executing ou r corporate-social responsibility through the Biocon Foundation, we have adopted an integrated outreach strategy that focuses on social change and empowerment of rural communities through public health, sanitation and education programs.

About Biocon Foundation Biocon believes its corporate social responsibility lies in bringing effective primary healthcare services to the doorstep of less privileged rural and urban sectors of India. We recognize the need for a healthcare system that is participatory, addressing socio-economic development based on preventive rather than curative care. To that end, we established Biocon Foundation in December 2004, to conceptualize and implement our CSR mission of providing equal access to essential healthcare services, e ducation and economic opportunities thereby accelerating social and economic inclusion. By establishing primary healthcare centres (PHCs), actively creating awareness about disease prevention, public health and sanitation, infrastructure building and initi ating programs in education, we aim to empower under -served communities towards self help, improved health and in good time, a better standard of living.

Vision:

To promote social and economic inclusion by ensuring that marginalized communities have equal access to healthcare services and educational opportunities

Mission:
y y y y

Expand the coverage of social protection schemes (ARY) to the poorest of the poor to reduce their vulnerability to health related catastrophes. Raise awareness about the importance of pre ventive health and assist communities to implement preventive health measures. To catalyze a movement for the adoption of good sanitation and public health measures by communities in rural India. To assist in developing educational material that will facil itate learning of basic concepts in schools. y To provide opportunities for self and experiential learning to children from marginalized groups.

Health
Biocon Foundation aims to provide essential primary healthcare services to individuals and families in target communities by means acceptable to them through their full participation and at costs that they can afford. We endeavour to address the main community health problems through provision of preventive, promotive, curative and rehabilitative services. T hey include promotion of proper nutrition, maternal and childcare, family planning, immunisation against major infectious diseases, prevention and control of locally endemic diseases, health education and appropriate treatment. In order to make our service s universally accessible in the community, we invite community participation in the planning, organization and management of the primary healthcare centres. This participation is best mobilised through appropriate education which enables communities to dea l with real health problems, thereby allowing them to make rational decisions concerning primary healthcare.

Our Approach to Primary Healthcare:

Education Fun with Maths - Chinnara Ganitha

In the area of child education, Biocon Foundation has collaborated with Pratima Rao, a prominent educationist and Macmillan India, a leading educational publisher to inculcate a love for math and self reliance in learning through innovative mathematics text books - Chinnara Ganita. Our books are being received with much enthusiasm by children attending primary school in rural districts of Karnataka. The project covered 11,000 children in Grade 1 & 2 in its first year and 15,000 children from Grade 1 to 4 in the second year. The Chinnara Ganitha program wa s launched in 2006 and initially targeted children in 1st and 2nd standard in government schools. By the academic year2008-09, the program grew to include students from the 1st to the 7th std and reached over 50,000 students in 500 schools. In 2009 -10, this self learning module reached over 70,000 children in 800 schools in 3 districts in Karnataka. Through the Chinnara Ganitha camps, the Foundation team has been able to evaluate the extent of penetration and effectiveness of the project. The idea behind these camps is to provide a forum through which the team could interact with the children and teachers in different schools and get a better

understanding of issues faced by them while provide solutions to the same. The camps also allow employees from Bioc on to become involved in the project as they were able to volunteer their time to teach and assist these children.

Infrastructure Sanitation
Around the world, 2.6 billion people do not have access to clean and safe sanitation. In India, over 80% of the rural population and more than 50% of urban households have no access to basic sanitation facilities. Responding to these alarming figures, the United Nations declared 2008 the International Year of Sanitation. Biocon Foundations sanitation initiative began in 2007 with an aim to offer poor rural communities access to safe and sustainable sanitation facilities. Through our programs, we endeavour to improve the health status of underprivileged village communities, decrease the environmental impact of inadequate sanitation practices and ultimately, generate economic benefits by increasing the number of workdays.
Huskur Pilot Program

Huskur Gram Panchayat is situated about 20 kms from Bangalore City. It comprises of seven villages, and has a total population o f 5033 people. Huskur is home to the famous and ancient Maddurama Temple. People come from near and far to pray at this temple. In addition to holy Friday that attracts thousands of faithfuls, the annual holy Jatra brings over 40,000 pilgrims and vendors o ver a period of one week to these villages. Poor and non-existent sanitary and hygiene conditions within households as well as a complete lack of sanitary facilities for visiting pilgrims have resulted in high incidence of hygiene and sanitation related il lnesses in the villages. With technical help from the Karnataka Rural Water Supply and Sanitation Agency, the Bangalore Urban Zilla Panchayat, the Huskur Gram Panchayat and building contractors chosen from the community itself, Biocon Foundation is

implementing a comphrensive sanitation and hygiene program in Huskur. The aim is to ensure every household in the villages has its own private toilet and to encourage the use of household toilets by making community members understand the link between illness and unsanitary behaviour. Biocon Foundation and the Embassy of Ireland, New Delhi will bear the cost of construction however, to create a sense of ownership of the project and the program, each beneficiary household is to contribute Rs. 1000 towards the construction and also be responsible for digging the pit. We believe this pilot project will make Huskur Gram Panchayat a model of household and environmental cleanliness thus motivating other Gram Panchayats in Anekal to emulate it.
Community Toilet Block:

To relieve villages surrounding the temple, Biocon Foundation has built a community toilet block with help from the Bangalore Urban Zilla Panchayat and the Huskur Gram Panchayat.
Individual Household Sanitation:

Besides providing a community toilet block, B iocon Foundation resolved to build individual household toilets for the Huskur community. A survey undertaken with the help of the Gram Panchayat committee revealed that out of a total of 1123 households, only 249 (22%) had toilets at home. To date, we have built 874 toilets.

Careers:
"Biocon's focus on innovation and differentiation continues to drive business performance and attract world class talent. This exciting phase of growth makes working at Biocon a stimulating, enriching and rewarding experience." - Ravi C. Dasgupta, Group Head, Human Resources

Biocon is today among the global leaders in biotechnology. To drive our growth, we continue to attract, develop and retain the most talented people.

We offer exciting and challenging careers within a st imulating knowledgedriven work environment where ideas and skills are valued; where people can realise their full potential through dedicated training programs; and where individual contribution is respected, recognised and rewarded. Our belief in creating value through innovation has successfully translated good ideas into effective medicines. At Biocon, we continuously strive to harness the power of intellectual minds and challenge conventional thinking by pushing the boundaries of science .

RESEARCH METHODOLOGY:
TITLE: Industrial review report on pharmaceutical industry. STATEMENT: Assessing various companies like Himalaya, Dr. Reddy and Biocon under the pharmaceutical industry. OBJECTIVES: Contributions made by the pharmaceutical companies, the advancements if any and their use, success of these companies in promoting health. SCOPE: Medicine has become the support system, changing life styles which lead to heavy demand for the medicines. PURPOSE: Basically for close analysis of the pharmaceutical industry and its in-depth knowledge. LIMITATIONS: Lack of time, firms do not disclose full information and the information published is not primary data.

SWOT ANALYSIS OF THE INDIAN PHARMACEUTICAL INDUSTRY: THE SWOT ANALYSIS IS INCLUDED TO REVEAL THE POSITION OF THE INDIAN PHARMECEUTICAL INDUSTRY IN RESPECT TO ITS INTERNAL ANS EXTERNAL ENVIRONMENTS.

STRENGTHS:
 India has a population of over a billion and is a largely untapped market. Also the penetration of modern sciences is less than 30% in India. Per capita expenditure on health care in India is US $ 93 while the same for countries like brazil is US $ 453 and Malaysia is US $ 189, this is basically to put things on track.  Indian manufacturers are the l owest cost producers of drugs in the world. India had scalable labor force and is capable of producing the drugs at 40% to 50% of the cost to the rest of the world. In some cases the cost is as low as 90%. This is where they are able to tap a huge chunk of the human resources.  The growth of the middle class in the country has resulted in fast changing lifestyles in urban and to some extent rural centres. This opens a huge market to life style drugs, which has a very low contribution in the Indian market.  The fact that despite the low level of unit labor cost in India boasts a highly skilled labor has enabled the countries pharmaceutical industry at a relatively early stage to offer quality products at competitive prices. Each

year, roughly 115,000 chemists graduate from Indian Universities with a masters degree and roughly 12,000 with a PhD. The corresponding figures for Germany- just fewer than 3000 and 1500 respectively are considerably lower. After many chemists from India migrated to foreign countries over the last few years, they now consider their chances of employment in India to improve. As a result a smaller number is expected to return within no time!!  Indian pharmaceutical industry possesses excellent chemistry and process engineering skills. This adds to the competitive advantage of the Indian companies. The strength in chemistry skills helps Indian companies to develop processes, which are cost effective.

WEAKNESS:
 The Indian pharmaceutical companies are marred by the price regulations. Over a period of time, this regulation has reduced the pricing ability of the companies. The national Pharmaceutical Pricing Authority is the authority which decides the pricing parameters, sets prices for the different drugs, which lead to lower cost producers, are at advantage while those who cannot produce have either stopped production or are actually bearing losses.  Indian pharmaceutical has been marked by the lack of product patents which prevent those very efficient global companies to introduce new drugs in the country and discourages innovation and drug discovery. But this has provided an upper hand to the Indian Pharma companies.  Indian Pharmaceutical market is one of the least penetrated in the world. However, growth has been slow to come by. As a result, Indian majors are relying on the majors for growth. To put things in perspective, India accounts for almost 16% of the worlds population while the total size of the industry is just 1% of the global pharmaceutical industry.  Due to very few barriers for entering the pharmaceutical industry is highly fragmented with about 300 large manufacturing units and about 18,000 small units spread across the country. This makes Indian market increasingly competitive. The industry witnesses price competition, which reduces the growth of the industry in value term. To put things in line, in the year 2003, the industry actually grew up by 10.4% but due to price competition, the growth in value terms was 8.2%.

OPPORTUNITIES:
 The migration into a product patent based regime is likely to transform the industry fortunes in the long term. The new patent product regime will bring with it new innovative drugs. This will increase the profitability of the MNCs and will force the domestic markets to focus on R&D which is also an integral part. This would result in consolidation as well. Very small firms will not be able to cope up with the developments.  Being the lowest cost producer combined with FDA approved plants; Indian companies are able to develop as glob al outsourcing hubs for the industry and its products.  Opening up the health insurance sectors and the expected growth in per capita income are key growth drivers from a long -term perspective. This leads to the expansion of healthcare industry of which pha rmaceutical industry is one of the integral parts.

THREATS:
 Threats definitely from the low cost economies like china and Israel exist. But on a credible note Indian quality is any day better than that of chinas. Thus the differentiation in the contract m anufacturing side varies.  There are too many concerns over the patent regime regarding its current structure. It might be possible that new government which comes to power may change certain provisions of the patent act formulated by the preceding government.  Short term threats would include the uncertainty regarding the implementation of VAT. This is likely to have a negative impact in the short-term, the implications over the long-term are positive for the industry.

COMPARATIVE ANALYSIS: MISSION AND VISION:

HIMALAYA: To establish Himalaya as science -based, problem-solving, head-to-heel brand harnessed from natures wealth and characterized by trust and healthy lives. DR. REDDY: It is driven by its vision to achieve significant business in proprietary prescription products by 2012 with a strong presence in developed markets. The company aspires to be amongst the top 5 global generic players and aims at achieving global sales of US $ 5 by 2012. BIOCON: To be an integrated biotechnological enterprise of global distinction essential to this mission is excellence in:
y State-of-the-art manufacturing capabilities. y Internationally benchmarked quality and regulatory system. y New medical insights through disease specific clinical research. y Intellectual asset creation through R&D. y Customer relationship through QUALITY. y HR development through training, mentoring and empowering. y Management of research and business partners.

ORIGIN AND AIM:

The Himalaya pharmaceutical founded by Mr. M. Manal in the year 1930 has a clear vision to bring AYURVEDA to society in contemporary form and to unravel the mystery behind the 5000 year old system of medicine. Dr. Reddy is Indias largest pharmaceutical company. Biocon is a fully integrated healthcare company that delivers innovative solutions with no side effects .

RESEARCH AND DEVELOPMENT:

HIMALAYA undergoes years of primary research and clinical trials before it actually releases in the markets. The R&D d epartment is focused on product development, standardization and quality controls. All products are derived through rigorous research and produced in state -of-the-art facilities. The products represent commitment to continuous investment in the best place, people, practice and technology. DR. REDDY views its R&D capabilities as a vital component of its business strategy that will provide the company with long -term, sustainable and competitive advantage. The company today has a pool of 1,200 efficient and well educated scientists who always engage in path breaking research. The strong R&D environment within the company for both drug discovery and development reflects the companys commitment to be a leader in generic space also offering a value added formula tion based on the companys Novel Drug Delivery System and New Chemical Entity research outcomes. BIOCON is one of the Indias global competitors and has exceptional scientific people research, they are one of the very few companies who are advancing their in-house R&D programs, while providing custom and clinical research services to international pharmaceutical companies and biotechnological majors through their subsidiary companies.

WORK ENVIRONMENT:
At Himalaya:

They are the oldest company and are one among the lot to have pioneered the use of modern sciences to rediscover and validate ayurvedas secrets. They also employ cutting edge research to create pharmaceutical grade ayurvedic products. Natural, effective and safe, these products have helped thousands of people live healthier, richer and safe lives. Their focus is on wellness; on helping people get healthy and stay healthy. The standardization of herbal medicines is a more daunting challenge than the processes used for allopathic medicines. Todays Himalayas manufacturing unit has the largest coating capacity in India. Researching on Ayurveda and capturing its benefits in formulations, has been the hallmark of Ayurveda at Himalaya. Using modern techniques and research methodology Himalaya is one such company which has made available to the country medicines with no side -effects.

At Dr. Reddy:

A career at Dr. Reddy means an opportunity for ample learning & growth. It offers avenues to work across the globe alongside the finest minds. The Company offers a challenging assignment, a world class working environment, professional management, competitive salaries, stock options along with exceptional rewards. If you have an appetite for challenges, we have an exciting career for you.

At Biocon:

Biocon is one such company which meets the demands of the market place cause of its ability to meet bring together highly talented people and provide them with the conducive environment which is comparable to the worlds best companies. People here believe in clan culture and at the same time mean business.

FINDINGS AND IMPLICATIONS:

CONCLUSION:

ANNEXURES:
LATEST NEWS: BIOCON:

Biocon tops bio-tech cos... June 22, 2010 (Publication: Bangalore Mirror) Bangalore-based company regains top slot in the sector with earnings of Rs 11.8 billion in 2009-10 NEW DELHI: The country's bio-tech industry clocked a 17 per c ent growth with revenues of Rs 137 billion ($3 billion) in the 2009 -10 financial year over the previous fiscal, according to a survey. Bio-pharma was the biggest contributor generating 60 per cent of the industry's growth at Rs 8,829 crore, followed by bioservices at Rs 2,639 crore and bio-agri at Rs 1,936 crore, said the survey by the association of biotechnology led enterprises (ABLE) and the BioSpectrum journal. The industry witnessed a three-fold growth in the last five years. Companies in western India outperformed those in other parts of the country, logging revenues worth Rs 6,631 crore - constituting 46 per cent of the total biotech market. While southern India made up for 39 per cent of the overall revenues at Rs 5,537 crore, the northern bio-cluster contributed just a seventh of the revenues at Rs 2,030 crore, added the report. Eastern India did not add any significant revenue to the country's overall biotech pie, the report said. Bang alore-based Biocon regained its top slot with earnings at Rs 11.8 billion, followed by Pune's Serum Institute of India at Rs 8.5 billion, while the third top grosser was Panacea Biotec at 7 billion. "Overall, there is a cautious optimism within the biotech industry and the recent government efforts to boost the inf rastructure and support for various industry initiatives will bring succour for the industry," said Narayan Suresh, group editor of BioSpectrum. According to the study, the industry is maturing and its annual growth will be around 20 per cent in the near f uture.

Biocon to supply colon drug in bulk to US firm... May 25, 2010 Publication : Business Line Biocon Ltd on Monday said it has signed a long-term agreement with US biopharma company Optimer Pharmaceuticals Inc. to commercially manufacture the bulk or active pharma ingredient fidaxomicin. The financial details were not given. Fidaxomicin, among a new class of antibiotics called macrocycles, is being developed by Optimer to treat serious colon infections such as Clostridium difficile infection and is said to be nearing commercialisation after two phase-3 trials. The infection causes diarrhoea, inflammation and sometimes death. "This long-term agreement is an important step in establishing a stable supply of fidaxomicin in the event it is approve d," said Mr Pedro Lichtinger, President and CEO of Optimer. "For the past five years, Biocon has been an important partner in our fidaxomicin development programme and we look forward to continuing the relationship." Ms Kiran Mazumdar Shaw, Chairman and Managing Director of the Biocon Group, said this was another recognition of Biocon's capabilities as an Research and Development partner and its global -scale manufacturing capabilities. Biocon has one of the largest Asian manufacturing capacities at its t wo Bangalore plants; it recently acquired Gulf Oil's API plant in Hyderabad and also created additional capacity by buying out Cuban CIMAB's stake in Biocon Biopharmaceuticals Ltd. Biocon also supplies human insulin in bulk to Bristol Myers Squibb. Biocon's expertise in fermentation technology and the team's prior analytical development work with fidaxomicin made it suitable to produce the drug in bulk, the release said. The US Centers for Disease Control and Prevention estimates that CDI affects nearly five lakh people in the US annually.

LATEST NEWS: DR. REDDY: DR. REDDY ANNOUNCES SETTLEMENT OF ACTOS (PIOGLITAZONE HYDROCHLORIDE) PATENT LITIGATION Jacksonville, FL March 15, 2010 -- Dr. Reddy Laboratories Limited , along with its wholly owned subsidiary Dr. Reddy Pharmaceuticals Inc. (collectively, Dr. Reddy), announced today that they have reached an agreement with Takeda Pharmaceutical Company Limited and Takeda Pharmaceuticals North America resolving outstanding patent litigation related to Dr. Reddy's generic equivalent version of Actos (Pioglitazone Hydrochloride) 15 mg, 30 mg and 45 mg tablets. Under terms of the agreement, Takeda granted Dr. Reddy a nonexclusive royalty free license to its U.S. patents covering Actos. Under the terms of the agreement, Dr. Reddy has certainty in the launch of its generic equivalent formulation of Actos on August 17, 2012, or earlier under certain circumstances.

Actos had approximately $3.4 billion in brand sales for the twelve months ending December 31, 2009, according to IMS Health. Actos is a once -daily oral prescription medication that, with diet and exercise, has been shown to be effective for the treatment of type 2 diabetes. This agreement will allow RPI to bring to patients with diabetes a generic alternative in this important therapeutic area, according to Jim Meehan, Vice President of Sales and Distribution for RPI. Dr. Reddy Pharmaceuticals Inc. (RPI) based in Jacksonville, Florida, i s a wholly owned subsidiary of Dr. Reddy Laboratories Limited (RLL), Indias largest pharmaceutical company. RPI is engaged in the sale and distribution of generic and branded prescription products in the U.S. healthcare system. Dr. Reddy Laboratories Limited, headquartered in India, is an integrated, research based, international pharmaceutical company producing a wide range of quality, affordable generic medicines, trusted by healthcare professionals and patients across geographies. Dr. Reddys continued focus on R&D has resulted in several approvals in developed markets and significant progress in New Drug Discovery Research. The Companys foray into Novel Drug Delivery Systems has led to proprietary "platform technologies", resulting in a number of prod ucts under development. The Company is serving its customers in over 125 countries

and has an expanding international portfolio of affiliates, joint ventures and alliances, ground operations in 46 countries and manufacturing operations in 7 countries. Dr. Reddy is a member of the Daiichi Sankyo Group. Daiichi Sankyo is a leading global pharma innovator, headquartered in Tokyo, Japan.
DR. REDDY LAUNCHES ANTIPLATELET AGENT PRASUGREL IN INDIA June 10, 2010, Gurgaon, India and Tokyo, Japan - Daiichi Sankyo Company Limited (Daiichi Sankyo) and Dr. Reddy Laboratories Limited (Dr. Reddy) announced today that Dr. Reddy has launched a generic version of Prasugrel in India. The product, called Prasita, is an antiplatelet agent for the prevention of atherothrombotic events in patients with acute coronary syndrome undergoing percutaneous coronary intervention. Prasita is solely marketed by Dr. Reddy in India.

Following the April 2009 launch of Olvance (olmesartan medoxomil), an antihypertensive originally discovered by Daiichi Sankyo, Prasita is the second product from the Daiichi Sankyo portfolio to be introduced in India through the strong Dr. Reddy business network. Dr. Reddy will create awareness, understanding and acceptance of the new antiplat elet therapy among the target audiences in the country. We are pleased to be able to introduce Prasita in India, said Atul Sobti, CEO and Managing Director of Dr. Reddy. A number of synergy projects between Dr. Reddy and Daiichi Sankyo are already under way, and we will further strengthen our common endeavour to realise greater benefits from our Hybrid Business Model. The launch of our two top flagship products, olmesartan medoxomil and prasugrel, by Dr. Reddy shows our serious commitment to India, and we will continue to explore further collaborations leveraging the Hybrid Business Model,saidTakashi Shoda, President & CEO of Daiichi Sankyo.
About Dr. Reddy Laboratories Limited Dr. Reddy Laboratories Limited, India's largest pharmaceutical company, is an integrated, research based, international pharmaceutical company producing a wide range of quality, affordable generic medicines, trusted by healthcare professionals and patients across geographies. Dr. Reddys continued focus on R&D has resulted in several approvals in developed markets and significant progress in New Drug Discovery Research. The Companys foray into Novel Drug Delivery Systems has led to proprietary "platform technologies," resulting

in a number of products under development. The Compa ny is serving its customers in over 125 countries and has an expanding international portfolio of affiliates, joint ventures and alliances, ground operations in 46 countries and manufacturing operations in 7 countries. Dr. Reddy is a member of the Daiichi Sankyo Group. Daiichi Sankyo is a leading global pharma innovator, headquartered in Tokyo, Japan.
About Daiichi Sankyo The Daiichi Sankyo Group is dedicated to the creation and supply of innovative pharmaceutical products to address the diversified, unmet medical needs of patients in both mature and emerging markets. While maintaining its portfolio of marketed pharmaceuticals for hypertension, hyperlipidemia, and bacterial infections, the Group is engaged in the development of treatments for thrombotic disorders and focused on the discovery of novel oncology and cardiovascular-metabolic therapies. Furthermore, the Daiichi Sankyo Group has created a "Hybrid Business Model," which will respond to market and customer diversity and optimize growth opportunities across the value chain. For more information, please visit www.daiichisankyo.com

DAIICHI SANKYO AND DR. REDDY TO INTEGRATE NEW DRUG RESEARCH AND DEVELOPMENT SYSTEM
July 02, 2010, Tokyo, Japan and Gurgaon, India Daiichi Sankyo Company Limited (Daiichi Sankyo) and Dr. Reddy Laboratories Limited (Dr. Reddy) announced today that Dr. Reddys New Drug Discovery Research (NDDR) has been transferred to Daiichi Sankyo India Pharma Private Limited as part of the strategy to strengthen the global Research and Development (R&D) structure of the Daiichi Sankyo Group. Established in 1994, NDDR has high level synthetic chemical research capabilities. The transaction has been approved by the Department of Scientific and Industrial Research, Ministry of Science and Technology, Government of India.

The new organization, Daiichi Sankyo Life Science Research Center in India (RCI), based in Gurgaon, will play a key role in the Groups global Drug Discovery Research - to create promising new drugs, especially in the area of low molecular weight infectious and inflammatory disease treatments. RCI will also continue to support the programs of dengue and tuberculosis that NDDR was working on in alliance with the Department o f Biotechnology, Ministry of Science and Technology, Government of India. Since October 2008, when Dr. Reddy joined the Daiichi Sankyo Group, the

companies have cooperated on R&D. By incorporating NDDR into the global Research function, the Group would ben efit from more efficient global R&D, as also achieve quicker results. Atul Sobti, CEO and Managing Director of Dr. Reddy, said, The NDDR group offers significant skill sets in Drug Discovery, that would now integrate and perform more effectively with the New Drug R&D structure of Daiichi Sankyo. Within Dr. Reddy, R&D of Generics will get a sharper focus, as we are increasingly working on more complex and specialist areas. Of course, this move would also provide Dr. Reddy good value, on an immediate and rec urring basis. With the transfer of the NDDR into the Daiichi Sankyo Groups pharmaceutical R&D organization, we will further strengthen our integrated global research capabilities through the addition of talented researchers who offer a new perspective and have a wealth of imagination and experience. We look forward to achieving outstanding and innovative results based on the implementation of global research management throughout our highly diversified and global R&D structure. saidJoji Nakayama, President & CEO of Daiichi Sankyo. Dr. Reddy has been a pioneer in India in the area of Research and Development. While NDDR will now become an integral part of RCI, Dr. Reddy will continue to independently develop and later commercialise the anti -malarial new drug, Arterolane + PQP, which is currently in Phase III trials, and will also explore the further development of late stage programs developed by NDDR in the last few years, including the development programs in the GSK collaboration.

DR. REDDY FINANCIALS:

Balance sheet
Dec ' 09 Dec ' 08 Dec ' 07 Dec ' 06 Dec ' 05

Sources of funds
Owner's fund

Equity share capital

210.21

210.19

186.54

186.34

186.22

Dec ' 09

Dec ' 08

Dec ' 07

Dec ' 06

Dec ' 05

Share application money

175.85

175.66

1.18

0.88

0.28

Preference share capital

Reserves & surplus

3,748.54

3,330.92

2,350.68

2,162.79

2,190.80

Loan funds
Secured loans 175.83 162.07 365.07 224.29 353.49

Unsecured loans

3,172.55

3,563.30

3,137.96

2,954.31

676.31

Total

7,482.99

7,442.14

6,041.42

5,528.61

3,407.10

Uses of funds
Fixed assets

Gross block

2,620.92

2,386.75

2,261.48

2,133.57

1,799.32

Less : revaluation reserve

Less : accumulated depreciation

1,027.52

930.07

791.96

699.54

599.35

Net block

1,593.41

1,456.68

1,469.52

1,434.03

1,199.97

Capital work-in-progress

414.92

428.77

327.42

301.88

432.84

Investments

3,833.69

3,618.03

3,237.55

2,679.95

762.78

Net current assets

Current assets, loans & advances 5,486.90 6,509.97 2,922.42 2,620.99 2,409.08

Less : current liabilities & provisions

3,845.92

4,571.31

1,915.49

1,508.24

1,397.56

Total net current assets

1,640.97

1,938.67

1,006.93

1,112.76

1,011.52

Miscellaneous expenses not written

Total

7,482.99

7,442.14

6,041.42

5,528.61

3407.10

Dec ' 09

Dec ' 08

Dec ' 07

Dec ' 06

Dec ' 05

Notes:
Book value of unquoted investments 3,569.70 3,348.65 3,106.69 2,659.94 762.77

Market value of quoted investments

380.72

267.93

280.46

14.27

0.01

Contingent liabilities

261.05

252.85

201.00

159.40

202.40

Number of equity sharesoutstanding (Lacs)

4204.17

4203.70

3730.71

3726.87

3724.42

Profit loss account

Dec ' 09 Dec ' 08 Dec ' 07 Dec ' 06 Dec ' 05

Income
Operating income 4,781.59 4,652.04 4,293.02 4,165.12 3,640.50

Expenses
Material consumed 2,049.33 1,933.72 1,820.51 1,663.53 1,536.59

Manufacturing expenses

231.17

203.48

172.95

160.22

136.64

Personnel expenses

728.40

472.65

420.04

328.45

298.38

Selling expenses

370.31

597.47

601.76

540.91

536.28

Adminstrative expenses

750.94

1,193.59

877.79

839.94

950.11

Expenses capitalised

Cost of sales

4,130.15

4,400.91

3,893.06

3,533.06

3,458.00

Operating profit

651.44

251.13

399.97

632.06

182.49

Other recurring income

98.13

91.28

17.18

30.33

23.46

Adjusted PBDIT

749.57

342.41

417.15

662.39

205.95

Dec ' 09

Dec ' 08

Dec ' 07

Dec ' 06

Dec ' 05

Financial expenses

39.47

145.83

93.43

58.44

26.41

Depreciation

148.20

154.47

118.73

106.75

101.33

Other write offs

Adjusted PBT

561.90

42.12

204.99

497.20

78.20

Tax charges

488.86

-574.24

156.69

62.43

-22.34

Adjusted PAT

73.04

616.36

48.30

434.77

100.54

Non recurring items

387.53

-1,678.92

533.95

-58.98

98.79

Other non cash adjustments

111.42

17.76

35.46

19.34

12.72

Reported net profit

571.98

-1,044.80

617.72

395.13

212.04

Earnigs before appropriation

-254.60

-828.53

664.84

451.16

439.05

Equity dividend

317.15

316.89

316.67

Preference dividend

Dividend tax

53.90

44.44

44.41

Retained earnings

-254.60

-828.53

293.78

89.82

77.97

Cash flow
Dec ' 09 Dec ' 08 Dec ' 07 Dec ' 06 Dec ' 05

Profit before tax

1,061.92

-1,619.08

774.41

442.98

190.13

Net cashflow-operating activity

-665.43

-599.22

685.77

315.49

107.32

Net cash used in investing activity

86.12

-462.91

-708.18

-2,103.74

-562.77

Dec ' 09

Dec ' 08

Dec ' 07

Dec ' 06

Dec ' 05

Netcash used in fin. Activity

-214.14

2,817.20

132.19

1,739.65

536.15

Net inc/dec in cash and equivlnt

-793.46

1,755.07

109.78

-48.60

80.70

Cash and equivalnt begin of year

862.39

172.14

62.36

110.96

30.25

Cash and equivalnt end of year

68.93

1,927.21

172.14

62.36

110.96

BIOCON FINANCIALS:
Balance sheet
Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06

Sources of funds
Owner's fund

Equity share capital

100.00

100.00

50.00

50.00

50.00

Share application money

Preference share capital

Reserves & surplus

1,465.34

1,273.93

1,277.25

890.53

751.77

Loan funds
Secured loans 154.58 162.61 143.57 106.49 104.91

Unsecured loans

37.23

1.33

0.32

0.28

0.14

Total

1,757.14

1,537.87

1,471.13

1,047.30

906.82

Uses of funds
Fixed assets

Gross block

1,020.21

987.50

880.11

861.19

316.11

Mar ' 10

Mar ' 09

Mar ' 08

Mar ' 07

Mar ' 06

Less : revaluation reserve

0.95

0.95

0.95

1.11

1.27

Less : accumulated depreciation

341.81

273.33

200.65

145.00

88.29

Net block

677.45

713.22

678.51

715.08

226.54

Capital work-in-progress

58.33

37.69

64.63

29.90

456.43

Investments

418.64

346.69

477.26

78.60

139.06

Net current assets

Current assets, loans & advances 1,112.89 781.06 525.07 479.92 334.56

Less : current liabilities & provisions

510.17

340.79

274.34

256.20

249.77

Total net current assets

602.72

440.28

250.73

223.72

84.79

Miscellaneous expenses not written

Total

1,757.14

1,537.87

1,471.13

1,047.30

906.82

Notes:
Book value of unquoted investments 406.43 334.54 468.20 66.81 139.06

Market value of quoted investments

156.71

288.86

144.71

Contingent liabilities

261.74

173.88

146.17

144.98

70.49

Number of equity sharesoutstanding (Lacs)

2000.00

2000.00

1000.00

1000.00

1000.00

Profit loss account

Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06

Income
Operating income 1,128.45 904.21 833.99 825.35 691.63

Mar ' 10

Mar ' 09

Mar ' 08

Mar ' 07

Mar ' 06

Expenses
Material consumed 569.82 416.08 398.70 421.76 386.48

Manufacturing expenses

79.57

84.89

88.91

73.22

36.98

Personnel expenses

99.84

80.42

66.81

55.27

42.06

Selling expenses

40.17

34.67

31.42

22.64

16.36

Adminstrative expenses

75.79

78.87

71.88

64.88

29.70

Expenses capitalised

Cost of sales

865.20

694.93

657.71

637.78

511.58

Operating profit

263.25

209.27

176.28

187.57

180.05

Other recurring income

100.85

83.60

97.27

39.72

6.27

Adjusted PBDIT

364.09

292.87

273.54

227.29

186.31

Financial expenses

1.99

4.94

3.09

8.16

2.48

Depreciation

79.73

74.28

69.00

57.61

22.85

Other write offs

Adjusted PBT

282.37

213.65

201.45

161.52

160.98

Tax charges

27.87

10.40

10.64

12.70

27.39

Adjusted PAT

254.50

203.26

190.81

148.82

133.59

Non recurring items

-6.15

-99.19

312.50

9.53

-0.11

Other non cash adjustments

7.73

-68.39

Reported net profit

248.36

111.80

434.92

158.35

133.48

Earnigs before appropriation

1,049.28

882.30

872.49

488.50

372.00

Mar ' 10

Mar ' 09

Mar ' 08

Mar ' 07

Mar ' 06

Equity dividend

70.00

60.00

50.00

30.00

25.00

Preference dividend

Dividend tax

7.41

10.20

8.50

5.10

3.51

Retained earnings

971.86

812.10

813.99

453.40

343.49

Cash flow
Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06

Profit before tax

276.23

114.46

513.95

171.05

160.87

Net cashflow-operating activity

228.48

115.99

264.72

113.94

40.32

Net cash used in investing activity

-120.26

-74.63

-266.16

-86.77

-48.30

Netcash used in fin. Activity

-37.15

-43.44

6.61

-24.44

4.74

Net inc/dec in cash and equivlnt

71.08

-2.08

5.17

2.72

-3.25

Cash and equivalnt begin of year

6.04

8.12

7.53

4.81

5.18

Cash and equivalnt end of year

77.12

6.04

12.70

7.53

1.93

BIBLIOGRAPHY:
For Dr. Reddy: http://www.Dr. Reddy.com/ http://money.rediff.com/companies/ Dr. Reddy-laboratories-ltd/12540040/cashflow http://money.rediff.com/companies/ Dr. Reddy-laboratories-ltd/12540040/profitand-loss http://money.rediff.com/companies/ Dr. Reddy-laboratoriesltd/12540040/balance-sheet http://www.Dr. Reddy.com/news/newsdisp.aspx?cp=962&flag=ARC http://www.Dr. Reddy.com/news/latestnews.aspx

For Biocon: http://www.biocon.com/ http://money.rediff.com/companies/biocon -ltd/11140013/balance-sheet http://money.rediff.com/companies/biocon -ltd/11140013/profit-and-loss http://money.rediff.com/companies/biocon -ltd/11140013/cash-flow http://www.biocon.com/biocon_press_news_details.asp?subLink=news&Fileid =393 http://www.biocon.com/biocon_press_news_details.asp?subLink=news&Fileid =391

For Himalaya: http://www.himalayahealthcare.c om/pressroom/news160.htm http://www.himalayahealthcare.com/index.htm

http://www.himalayahealthcare.com/abouthimalaya/index.htm http://www.himalayahealthcare.com/newshimalaya/news_him048.htm

Other references: http://www.google.co.in/search?hl=en&source=hp&q=swot+analysis+for+phar maceutical+industry&aq=f&aqi=&aql=&oq=&gs_rfai=&gs_upl=16220,236,28, 7,120,317,5,9,7,1 http://www.equitymaster.com/detail.asp?date=6/21/2004&story=5 www.google.com www.wekepedia.com