ranbaxy
TRANSCRIPT
Largest pharmaceutical company out of India with global reach and competencies across the value chain
Rationalizing Healthcare costs a key priority for GovernmentsEmerging Markets: accelerating brandedgenerics
Key Growth Drivers
North America & Japan Europe
Other Emerging Markets BRICS• No. 1 in India• Large, reputed player in CIS;
growing rapidly• No. 6 in Brazil• No. 5 in S. Africa
• 43/54 countries in Africa• Latan & Asia Pacific: long
standing presence; good understanding; robust businesses
• Pioneer entrant from India• Strong local presence • Canada: New market,
growing rapidly
• Well established• 23/25 EU markets• No. 1 Generic player in
Romania
Perhaps the largest front-end in the generic industry
Ground presence in 49 countries; products sold in 125
Revenue Profile
$ Million
Extensive ground presence, especially in high-growth brand-
driven emerging markets * 2009 Guidance is based on INR-USD exchange rate of 50.5
$ Million
Favourable Market Mix
Revenues spread across geographies
Growing share of high growth, sustainable branded business in Emerging Markets
Substantial presence in regulated, western markets: high volume base business
=> Stability and sustainability of profits
One of the largest ANDA and FTF Pipeline
62 Other
ANDAs
16 P-IV FTFs
$ 22 Billion
$ 28 Billion
InnovatorMarket Size
Molecule Innovator Market Size Status Year
Simvastatin* Merck (Zocor) $ 0.5 Bn Launched 2006
Pravastatin* BMS (Pravachol) $ 0.2 Bn Launched 2007
Sumatriptan GSK (Imitrex) $ 1.0 Bn Launched 2008
Valacyclovir GSK (Valtrex) $ 1.3 Bn Settled 2009
Esomeprazole^ AZN (Nexium) $ 5.5 Bn Settled 2009-14
Tamsulosin BI**/Astellas (Flomax) $ 1.2 Bn Settled 2010
Atorvastatin Pfizer (Lipitor) $ 8.0 Bn Settled 2011
Proven R&D and IP capabilities for developed markets => large base business + consistent
upsides through Para-IV FTFs
Ability to monetize FTF opportunities…
* Proof of Concept
Drug Discovery Programme
Phase-III Clinical trials started for Arterolane
Arterolane is a novel synthetic anti-malarial drug
Potential to mitigate problems with current standard-of-care which is plant based
Merck Alliance
Drug Discovery & Clinical Development through Phase II clinical trials
Therapeutic area focus of anti-bacterial & anti-fungal drug candidates
> $ 100 Mn in milestone and significant royalties on commercialization
A platform for new growth opportunities
GSK Alliance
Phase-I human clinical trials initiated for a Respiratory
Inflammation molecule
Take leads beyond candidate selection to POC* in man
Therapeutic area focus of AI & Metabolic, Respiratory &
Oncology
> $ 100 Mn in milestone and double digit royalties on
commercialization
Drug Discovery Programme
Recent US Developments – Multipronged Strategy
We are working on all fronts to swiftly resolve all matters and minimize transient
business impact
Realigning Supply Chain
• Sourcing opportunities• Site transfers
Engaged in constructive
dialogue with authorities
Resolving the USFDA Import Alert and AIP is the highest priority
Warning Letters &
Import Alert on 30 products from 2 Indian facilities; AIP
Working with USFDA for an early solution
Strengthening processes in
Manufacturing
Prepared for the future
Pharma & Business Imperatives…
With increasing pressures in the developed world, high-growth emerging markets necessitate higher focus
…Are Forcing a Rethink of Established ModelsG
eneric Companies
Going forward, will “pure-play” models be able to cater to shareholder expectations?
Combining Capabilities will Drive Growth
Access to high growth, high volume markets
Access to low cost R&D and Manufacturing
Access to proprietary products
Access to advanced competencies and capabilities
Product portfolio spanning market segments
Wider reachDe-risked business
model
Increasing trend of leveraging both models
Strategic Alliance
Impact on Ranbaxy Strengthens Balance Sheet
Cash Infusion of Rs. 35,849 MillionBook Value of Shares increases from Rs. 75 (Dec’07) to Rs. 102 (Dec’08)
Fast track growth in world’s #2 pharma market
Proprietary product flow for our strong branded business in emerging markets
Potential benefits in R&D and Manufacturing
• Daiichi Sankyo is now the majority shareholder
• Synergies start flowing in with launch of Olvance in India, an innovative product of Daiichi Sankyo
• More innovative product launches to follow in emerging markets
Ranbaxy:: Surging Ahead
Synergies of being a part of Daiichi Sankyo will upscale all above
In Summary
A vertically integrated global pharmaceutical Company
Presence across all key developed & emerging markets
Strong distribution network & brand building capabilities
Cost efficient India based Research & Development and Manufacturing
Robust generic product flow
New high growth specialty segments
Focus on NCE research
Thank You