Partners in Globalisation UK Trade & Investment

British Business Group in Mumbai & Pune

Dr. Brian W Tempest

Chief Mentor & Executive Vice Chairman of the Board

Ranbaxy Laboratories Limited, Delhi, India

Ranbaxy Case StudyMumbai – Thursday 27th September 2007

BY - PAVNEET SINGH KOHLI

DR. BRIAN W. TEMPEST CSci, CChem, MRSC, BSc, PhD

Brian Tempest has worked in the pharma industry for the last 36 years. During this time he has worked for several pharma majors, including Glaxo, Beecham &

Searle, around the world and joined Ranbaxy 12 years ago. During this period Ranbaxy has transformed from a small company focused on the India domestic

market, to a top 10 global generic company. Dr. Tempest has lived in New Delhi, India for the last 8 years, and has been President, Managing Director & Chief

Executive Officer and Chief Mentor & Executive Vice Chairman of the Board. Dr. Tempest retires from Ranbaxy in December 2007 having reached 60.

Dr. Tempest is one of a few westerners to have held a leadership position in an Indian blue chip MNC, and has an unusual insight into India.

Dr Tempest is also a Honorary Professor of the Management School at Lancaster University, UK, and he sits on the Editorial Board of the Journal of Generic Medicines and the Advisory Board of the India Fund held by JM Financial

Investment Managers Ltd n Mumbai.

brian.tempest@gmail.com / brian.tempest@clara.co.ukMobile +91-98100-91192 / Tel:+44 1753 864 616

Asia’s Share of the World GDP (at PPP in %)

Year 1870 1913 1950 1973 2001 China 17% 9% 5% 5% 12% India 12% 8% 4% 3% 5% Japan 2% 3% 3% 8% 7%

Rest of Asia 7% 5% 7% 9% 13% Total Asia 38% 25% 19% 25% 37%

Source – WEF

- was 59% in 1820 with India 16%, China 33%

Asia on the Rise

Source – FT

A race to prosperity

The Productivity Advantage

India a usa Pharma view USA India a usa Pharma view USA

1 chemist Better education x 1.3 1 chemist 1 chemist Better education x 1.3 1 chemist

70 hours/week Longer working time x 1.3 50 hours/week 70 hours/week Longer working time x 1.3 50 hours/week

$ 800 monthly Lower cost x 20 $ 12,000 monthly $ 800 monthly Lower cost x 20 $ 12,000 monthly

Sources: IPHMR Conferences, New Delhi August 2004

The Education Advantage

The Education Advantage

Engineers/Science graduates p.a – India 0.7m, China 0.5m, EU 0.5m, USA 0.4m, Japan 0.3m

The Pharma Plants Advantage

Active Pharmaceuticals Facility, Mohali Dosage Forms Facility, Paonta Sahib

Generics – API’s

USA DMF filings by India % Share of USA DMF filings

India China 2004 27% 9% 2005 37% 10% 2006 44% 14%

Q1’07 48% 17%

Source: US FDA / J P Morgan, 2 May 2007

Source: US FDA, Credit Suisse

India China 2004 187 48 2005 252 87 2006 357 128

Source: US FDA / J P Morgan, 6th August 2006

- One in every four ANDAs filed by Indian Companies in top USA FDA filers Source: KPMG

- No Chinese generic company has yet filed a USA FDA ANDAbut expected in 2008

Generics - ANDAs

0

50

100

150

200

250

300

2002 2003 2004 2005 2006

2446

64

144

ANDA Filings in USA by Indian Companies

250

Patient Recruitment

Cost Advantage China IndiaCost 40 16Patients/site 250 500

Based on USA at 100 Index

Source: BCG report ‘Looking Forward 2006’

Country USAIndia

Sites 22 8

Subject 626 896

Source: Andy Lee Pfizer Global, head clinical study and data management. Business India, August 13, 2006

“………..The Country’s World Class skills in Chemistry & IT and it’s large treatment naivepatient population provides added allure” Boston Consultancy Group

Harnessing the power of India 2006

The Pharma Clinical Advantage

Medical Tourism

Cardiac Surgery $000s USA 30 Singapore 20 Thailand 14 India 5-7Source: Business world, 18th Dec’2006

Patients

- Naïve untreated patients- HIV 50m- Diabetes 32m- HT 5m

Ranbaxy Today

Amongst the top 10 Global Gx companies

Ground presence in 49 countries,

products sold in > 125

International business ~ 80% of sales

Ranked # 1 in the Indian Pharma industry

Manufacturing locations in 9 countries

> 11,000 employees, 51 nationalities

Strong Generics & Innovative research

capabilities

2001 2003 2006

$ 553

$ 972

$ 1340*

CAGR 19 %

Global Sales

Worldwide Presence

* Unaudited

Research & Development

Dedicated facilities for Gx & Rx research

Over 1400 people, ~ 300 Doctorates

Strong IP & Global Regulatory expertise

R&D I

R&D III

R&D II

R&D IV

2006

$ 85 Mn R&D spend6.5% - 7% sales

2006 Sales by Geography

Europe & CIS25%

API8%

Americas33%

Asia27%

Africa7%

$ 1.34b

1990

Only Trading companies in:

Nigeria

Malaysia

Thailand

The Role of the UK

1995

First Trading company in the West:

UK

Today

Worldwide President office European Regional Director

office UK domestic operation Sales in 125 countries

“The Indian System looks ramshackleand improvised. But at its best it is capable of brilliance”

“When we say the Silicon Valley isbuilt on ICs we don’t mean integratedcircuits – we mean Indians & Chinese”

“The UK needs to wake up to whatIndia is becoming”

Source: DEMOS report – January 2007

Perceptions of India

Thank You