3 rd India-Russia Trade & Investment Forum

1. 3rd India-Russia Trade & Investment Forum Moscow 29th Sept 2009 Pravin Tripathi Vice President - International Email: pravin.tripathi@cadilapharma.co.in

2. Snapshot Objectives: • The areas of collaboration in pharmaceutical segments between Russia and India through leveraging each others strengths and weaknesses. • Exploring the areas such as JV’s in Greenfield projects, Offering quality Formulations & APIs at affordable prices, Collaborative R&Ds and innovations, Sharing the knowledge base & talent pool and enhancing medical tourism

3. Market Insights

4. Global Emerging Markets# Trends Emerging markets growing @11.4% Global markets growing @ 7% # - Emerging markets include countries in Asia, LatAm & Eastern Europe & key countries with double digit growth are China, India, Russia & Turkey Source: IMS Health: MIDAS

6. Indian Pharmaceutical Mkt • Current Scenario • Local Pharma market: $12bn; Growth rate: 9% • Pharma Exports $8bn; Export growth rate 25% (Graph) • Second largest API manufacturing & R&D hub • ~15000 mfg facilities & ~100 big & organized manufacturers • Core to the expansion of Indian pharmaceutical industry is availability of high quality generic products at affordable prices • Is becoming a global pharmaceutical back office for Clinical research & trials has grown to $1bn • R&D Expenditure USD 495 mn. • Excellent education system & talent pool • 75+ US FDA Approved plants Source: IMS Health: MIDAS & IMS World Review; Analyst projections; McKinsey India Pharmaceutical Demand Model, India – Includes institutional sales

7. Aspirations To become one of the top 10 markets Stimulating development & production of innovative drugs One of the biggest exporters of Pharmaceutical products & APIs Hub for CRAMS & Generic drugs Leader in back-end for Global Clinical Research & Trials Preferred Medical tourism destination by providing world class treatment at affordable prices Epicenter for global pharmaceutical brainwave and talent pool Challenges Translate initial R&D development into end product Increasing healthcare cost to make high end drugs available to all Lack of public health resources and infrastructure Unutilized manufacturing capacities Indian Pharmaceutical Market

8. Source: IMS Health,*DSM Group

9. Russian Pharmaceutical Mkt • Current Scenario • Pharma market: $17bn • Growth rate: 31% • Pharmacy sales increased by 26% • Industry dominated by pharmaceutical imports • Economic growth & stability have increased the market attractiveness • State run healthcare program DLO have increased 60% financing but the number of entitled patients dipped by 60% • Out of pocket spending is 65%

10. Aspirations Increase in local manufacturing Harmonization of Russian drugs as per international requirement Stimulating development & production of innovative drugs Promote exports by providing additional funding for originator projects Protect local market & make market access conditions smooth Upgrade technologies, equipments Train specialists in production areas Challenges Under developed legislation Inability to innovate & inadequate budget for R&D Lack of API industry (2%) Low local manufacturing base High credit interest rates Poor Liquidity & incapability of sponsoring long-term risky projects for innovative pharmaceuticals Low talent pool for the sector with lack of skilled labors Russian Pharmaceutical Mkt

11. Indo-Russia Pharmaceutical Trade Opportunities

12. What India Can offer? • High quality, Affordable Formulations & APIs (Cost Effective) • JVs for manufacturing, R&D & Clinical Trials (Greenfield projects) • Offering CRAMS (Contract Research & Manufacturing) (CRAMS) • R&D services and Clinical Trials at CRO’s in India (Overview) • Advanced medical treatment at affordable cost (Medical Tourism) • Skilled scientists for innovative research • Extensive Practical training and world class education • Special Economic Zones for manufacturing

13. CRAM - Opportunity • India could potentially capture 10% of the global CRAMS market of almost US$ 168 billion by 2009. • Overall, the CRAMS segment is expected to have grown at 40-50 percent in the last few years. US Pharmacoepia India office opened at Hyderabad -first outside USA Back Source: CYGNUS Business Consulting & Research

14. World class education • No of Higher education institutes including medical, Science & pharmacy: 18,000 • 348 Universities • 299 Medical colleges • 10.48 Mio. Students gradate every year • 460,000 registered pharmacist • 668,131 Doctors  

15. Expectations from Russia • Suitable investment climate for Greenfield projects in terms of tax benefits, soft loans, easier processes, land & other resources • Credit worthiness and insurance coverage • Faster & More Cost-Effective registration process • Encouragement for speedy registration for launch of innovative products from India • Sending patients to India for advanced treatment • Student exchange programs for advanced studies in pharmaceutical research • Preferred Visa process and issuance of long-time visa

16. Cadila Pharmaceuticals Ltd

17. Our Vision To be a leading pharmaceutical company in India and to become a significant global player by providing high quality, affordable and innovative solutions in medicine and treatment. Our Mission We will discover, develop and successfully market pharmaceutical products to prevent, diagnose, alleviate and cure diseases. We shall provide total customer satisfaction and achieve leadership in chosen markets, products and services across the globe, through excellence in technology, based on world-class research and development. We are responsible to the society. We shall be good corporate citizens and will be driven by high ethical standards in our practices. I A Modi-Chairman Dr. R I Modi-MD

18. Overview • Actively present in Entire Life Sciences Value Chain from Research and Development to API to Finished Formulations to Marketing and Distribution. • State-of-the-Art Manufacturing facilities conforming to most stringent global cGMP Standards. • Dedicated world class Research and Development Centre focusing on Formulation / Biotechnology / API. • Committed Contract Research Organization conforming to International Regulatory Framework. • International presence in 5 Continents and 50+ Countries. • Amongst the largest healthcare manufacturing groups (Global Sales -2008 – US$ 1.5 Bn. at US Price Parity).

19. Sterile Forms Ampoules Multi dose vials Suspensions Dry powders Eye & Ear drops Non-Sterile Forms Tablets-Coated / Uncoated Hard Gelatin Capsules Soft Gelatin Capsules Granules Dry Syrups Oral Liquids & Susp. Manufacturing Capabilities Range of Dosage Forms Dec ‘08

20. Plant Manufacturing Capacity Tablets – 18300 Million Nos Finished Formulations Capsules – 1500 Million Nos Injections – 151.2 Kilo litres Liquids – 15 000 Kilo litres Dry Powder injections – 240 Tonnes (PA) Granules – 35 Mn Sachets Dedicated facilities for production of Cephalosporins, Rifampicin and Lyophilised products Ankleshwar – API: Bulk Drug – 700 Tonnes * Manufacturing Capacity/Annum on single shift basis

21. Research and Development • Dedicated facilities for - Innovative Research - Generics Research • Formulation Development - Novel Dosage Form Development - Novel Drug Delivery systems • Biotechnology - Vaccines, Diagnostics, Bio Therapeutics • Chemical Research (API) - Anti-Hypertensive, Anti-Histaminic, Anti-Diabetic, - Anti-Ulcerants, Anti-Depressant, Anti-TB

22. Innovation at Cadila • World’s First 5 in 1 wonder pill • Reduces the Cardiovascular risk by 62 % and Stroke by 48 % with ease of taking medicine

23. Tuesday, March 31, 2009. USA Today

24. 30th Mar’09 – ACC, Orlando, US TIPS Study Presentation (World Thrilled) 18th Apr’09 TIPS Study Published (Cover of Lancet) 9th May – Polycap TIPS Symposium at Delhi by Prof.S.Yusuf 20th Jul – First time in World POLYCAP got Regulatory (DCGI) approval 6th Aug’09 – POLYCAP Launch

25. Innovation at Cadila • Risorin • Rifampicin 200mg + Isoniazid 300mg + PipeRine 10mg • A product that will revolutionize the treatment for TB by reducing the dose of rifampicin and increasing the patient compliance • Risorine is bioequivalent to Rifampicin 450mg • Faster absorption, Lesser dose • Better & earlier clinical improvement • Rapid improvement in radiological signs, and clinical signs and symptoms

26. Entered into JV with Novovax, USA • To develop innovative vaccines • Based on Virus Like Particles (VLP Technology) • Currently developing H1N1 vaccines (Clinical trial stage)

27. CPL CRO Services Offered: • Pre-clinical and toxicology studies. • Bio-availability / Bio-equivalence studies. • Bio-analysis • Clinical Trial Management [Up to Phase IV] • Data Management. • Medical Writing • Biostatistics • Expertise in the areas of Vaccine, TB & Cancer

28. Medical Tourism Health Insurance and Third Party Administration Owned & Managed Hospitals Clinical Research & Site Management CADILA-APOLLO Ahmedabad Global Projects Consulting Technology Services & Solutions Retail Pharmacies Health Education & e-Learning Primary Care Clinics

29. CPL – Group Companies • CPL Infrastructure Pvt. Ltd. • Established with an objective to develop world class, state-of-the-art • pharmaceutical infrastructure. • PhaEZ Park, developed by CPL Infrastructure Pvt. Ltd. is one of the • largest private sector Life Sciences SEZ promoted in India. • Casil Industries Limited (CIL) • Established to cater to the requirements of the medical profession, drugs • and pharmaceuticals. • - Four major divisions: Sofgel, Hospicon, Diacon and Kemicon • Karnavati Engineering Ltd. (KEL) • - The engineering arm of Cadila, Karnavati Engineering Ltd (KEL), is a • well-established manufacturer of "Rimek" precision pharmaceutical • machinery and allied equipment. Total healthcare solutions Dec ‘08

30. CPL’s International – The Reach • Over 1000 marketing authorizations / products registrations in 52 countries • International Distribution Network of 65 distributors • Multinational, multicultural and multilingual work force internationally EUROPE & CIS (12 Countries) ASIA (14 Countries) AMERICAS (8 Countries) MIDDLE EAST (5 Countries) AFRICA (13 Countries)

31. CPL’s Russia Presence • CPL Operation since last 25yrs • Regional office in Moscow • 20 product Registration • Vision: • To have JVs in the areas of manufacturing and R&D • Introducing innovative products such as Polycap, Resorine and Vaccines

32. Photo Gallery

33. Thanks

34. Back-up slides

35. Marketing - International Brand Building Initiatives - Therapeutic Areas CARDIOVASCULAR & DIABETICS • Anti-hypertensives • Anti-anginals • Lipid Lowering • Anti-arrythmics • OHA & Insulin GASTROINTESTINAL • Anti-ulcerants • Anti-spasmodics • Gastrointestinal anti-infectives • Anti-emetics • Anthelmintics NEUROPSYCHIATRIC • Anti-depressants • Anxiolytics ANTI-INFECTIVE • Anti-bacterials • Anti-virals • Anti-fungals NSAIDs ANTI-HISTAMINICS CORTICOSTEROIDS VITAMINS / HAEMATINICS

36. What India Can offer? • Economy on a boom • Revolutionary wealth creation (Special Economic Zones for manufacturing created for tax benefits) • Share of wealth for everyone • Increasing urbanization • Life-style changes • Healthcare infrastructure • Insurance & reimbursement • Greater spread of patient base • Buoyant pharma industry growth

37. Indian Export Trend

38. India’s Export to Top 5 Countries Back

39. Demand Outlook … Economic Play GDP Growth % Real GDP $ Bn India’s GDP will exceed Italy’s in 2016, France’s in 2019, Germany’s in 2023 and Japan’s in 2032 INDIA TO BECOME THE 3RD LARGEST ECONOMY IN THE WORLD BY 2032 Source: Goldman Sachs, “Dreaming with BRICs : The Path to 2050”

40. There is India Advantage … Back

41. CRAMs - Opportunity 2b US Pharmacoepia India office opened at Hyderabad -first outside USA Back Source: Competitiveness of Indian Pharma Industry in the new Product Patent Regime, FICCI

42. Clinical Trial – an Overview • Global Clinical Trial Market: US$15Bn • Indian Clinical Trial Market: US$350Mn (2008) • Total CROs in India: 100 • India’s Clinical Trial Market is projected to be US$1Bn by 2010 Back

43. Russia Pharmaceutical Industry Business Cooperation

44. Demographic & Economic Parameters Source: Gov. Stats

45. Russian General Statistics Source: PharmaExpert

46. Leading Pharma Corporation in Russia

47. Leading Pharma Importers in Russia

48. Leading Pharma Importers in Russia Source:*Pharmexpert (2007)

49. Shares of drug importers in Russia

50. Shares of Drug Importers In Russia