Piramal Healthcare

Piramal Healthcare Ltd, a Piramal Group company, is a globally integrated healthcare company that fulfills unmet medical needs across the world. It has a growth track record of above 29% CAGR since 1988. Piramal Healthcare had consolidated revenues of US$ 656 million in FY2009. PHL is currently ranked 4th in the Indian market with a diverse product portfolio spanning several therapeutic areas. It is also one of the largest custom manufacturing companies with a global footprint of assets across North America, Europe and Asia.

Piramal healthcare is a front runner in the Cardio-vascular segment. It has a strong presence in Antibiotics and Respiratory segments, Pain management, Neuro-psychiatry and Anti-Diabetics segments. The company is also making forays into Biotechnology in key therapeutic areas for which it has formed several global alliances. At end of 2009, PIRAMAL HEALTHCARE's recorded sales worth 32,448.1 million with sales growth around 12 to 15 %.

PIRAMAL HEALTHCARE's biggest brands in the pharma business are Phensedyl, Ismo, Supradyn, Gardenal, Stemetil, Haemaccel and Rejoint - these bring in 67 per cent of the business, while its secondary brands which include Paraxin, Flagyl and Omnatax contribute around 24 % of its revenues.

An aggressive player in the pharma industry, Nicholas Piramal Industries Ltd. (Now Piramal Healthcare) came into existence in 1988 when it acquired Nicholas Laboratories from Sara Lee and in the last 15 years grown to its leadership position through a series of well managed acquisitions, mergers and alliances. Some of PIRAMAL HEALTHCARE's major acquisitions include the Indian operations of Roche Products Ltd., Boehringer Mannheim India Ltd., Hoechst Marrion Roussel Ltd,'s Research Centre, Rhone Poulenc India Ltd., ICI India Ltd.'s Pharma Division and Aventis' Research facilities.

PIRAMAL HEALTHCARE has joint ventures and alliances with some of the finest global names in the industry which include F. Hoffmann-La Roche Ltd., Switzerland; Allergan Inc., USA; UK; Gilead Sciences, USA; Cheissi, Italy; and IVAX Corp; UK.

PIRAMAL HEALTHCARE's core strengths are its 2700-strong field force that offers it the depth and width in the Indian market; successful brand building -

today PIRAMAL HEALTHCARE, together with its JVs, has 16 brands among the top 300 in the Indian Pharma Industry; state-of-the-art manufacturing plants - PIRAMAL HEALTHCARE's Hyderabad plant is the only one in India to have USFDA approval for the entire facility, it is also accredited and approved by MCA of UK, TGA of Australia and the European and Canadian Drug Authorities, and its Pithampur plant in Central India is accredited by reputed organizations like Allergan, Novartis, Solvay and IVAX, among others, which use it for toll manufacturing.

With the acquisition of Pfizer's Morepeth's manufacturing site in UK, Nicholas Piramal through its wholly owned subsidiary PIRAMAL HEALTHCARE Pharmaceuticals Limited, has emerged as one of the leading custom manufacturing organizations across the world.

Today, Piramal Healthcare , is well poised to take advantage of the opportunities that will emerge in the bulk actives and intermediates market for contract manufacturing at attractive price points of both on patent and off patent drugs for the regulated markets of Europe, US and Japan. The company's track record and credibility in respecting IPR is extremely good and is respected globally. PIRAMAL HEALTHCARE also has major investments in R&D which focus on formulations development, new chemical entity research, and clinical research from laboratories in India and abroad.

Piramal healthcare is the flagship company of the Rs. 2500 crore (US $ 500 million) Piramal Enterprises (PEL), one of India's largest diversified business houses. The Group is headed by Mr. Ajay Piramal, who is also the Chairman of PIRAMAL HEALTHCARE, and among the most respected names in Indian industry.

Piramal Healthcare listed in the:

S&P Global Challengers’ List of 2006 Forbes ‘Best Under A Billion’ List of 2003 and 2004 Forbes 2005 List of ‘Best Small Asian Companies’

Piramal Healthcare grew from rank 48 to amongst the top 5 pharmaceutical companies in India in just 20 years.

Piramal Healthcare was the only pharmaceutical company to have a representation on the Scientific Advisory Committee to the Prime Minister of India.

CORPORATE STRUCTURE

Managing Team :

Mr. Ajay G. Piramal, Chairman

Dr.(Mrs.) Swati Piramal, Director-Strategic Alliances & Communications

Mr. Pranzeet Singh, Director - (Formulations)

Dr. Somesh Sharma, Chief Scientific Officer

Mr. N. Santhanam, Executive Director & Chief Financial Officer

BOARD OF DIRECTORS :

Mr. Ajay G. Piramal, Chairman,

Mr. Rajesh Khanna, Director

Mr. Y. H. Malegam, Director

Dr. Swati A. Piramal, Director - Strategic Alliances & Communication

Mr. S. Ramadorai, Director

Mr. Deepak Satwalekar, Director

Mr. R. A. Shah, Director

Mr. N. Vaghul, Director

Mr. Keki Dadiseth, Director

Mr. N. Santhanam, Executive Director & Chief Financial Officer

CORPORATE STRATEGY

Piramal Healthcare’s medium-term business model envisages achieving leadership in the domestic pharmaceuticals market, and building a strong de-risked international business around the company’s core strengths in manufacturing, marketing and R&D. s

Piramal Healthcare has some of the strongest brands in India and a demonstrated ability to build brands and leadership through markets characterized by intense competition. The company's strategy of leveraging its competencies, built assiduously over the years through a growing domestic market, and addressing manufacturing opportunities in the developed global pharmaceutical markets sharply defines their strategic intent.

The Indian domestic market is significant since it represents the base on which Piramal Healthcare is building a global business model. India represents a sixth of humanity. Although buying power and pharmaceuticals penetration is currently lower than some of the more developed markets, it is expected to grow to US $ 25 billion by the year 2010.

Piramal HealthCare has an unmatched record of managing Joint Ventures / Alliances / Partnerships and a proven commitment to IPR. Capabilities include sales & marketing, a US FDA site-approved plant for on-and-off patent APIs and Intermediates, Basic Research, process innovation, Custom Chemical Synthesis, Formulations R&D, NDDS, and a world-class Clinical Research Organization.

ASSOCIATE COMPANIES

Joint Ventures, Alliances & Partnerships

Piramal Healthcare is well positioned as a partner of choice for any multinational company looking at the Indian market. It has an unmatched record of managing Joint Ventures/Alliances/Partnerships and a proven commitment to IPR. Capabilities include strong brand management, sales and marketing, a US FDA site-approved plant for on-and-off patent APIs and Intermediates, Basic Research, process innovation, Custom Chemical Synthesis, Formulations R&D, NDDS, and a world-class Clinical Research Organization.

Few Indian Pharmaceutical firms have as strong and consistent record in successfully and ethically managing JVs/Alliances and Partnerships as PIRAMAL HEALTHCARE has.

Its policy of respecting IPR and managing partnerships, in keeping with both the letter and the spirit of written agreements, has been widely respected and commended by its partners.

Today, PIRAMAL HEALTHCARE has JVs/Alliances with some of the finest global names in the Pharmaceutical and Healthcare industry. Its major current partnerships (including JVs/Alliances) are:

IN-LICENSING AGREEMENT

Gilead Sciences, USA Biogen Idec Inc Genzyme Corporation

Laboratories Pierre Fabre EthypharmBiosyntech Inc.

Cheisi, Italy

JV’S FOR INDIAN MARKETS

Allergan Inc., USA Boots Plc.,UK

Piramal HealthCare Vision and Mission

MISSION:

Making a difference to the Quality of Life by reducing the burden of disease.

VISION:

To become the most admired pharmaceutical company in India with leadership in market share, research and profits by:

Building distinctive sales and marketing capabilities

Inculcating a high performance culture

Being the partner of choice

Always adhering to ‘our values’ based on our obligations as trustees of customers, employees, shareholders and society

We shall pursue world-class standards in our People, Products, Processes, Partnerships and Performance

Encouraging Innovation and Nurturing Intellectual Capital

Vitamins and Fine Chemicals Division

The Piramal Group acquired shareholding of F.Hoffmann-La Roche Ltd., Switzerland, in the Indian subsidiary, Roche Products Limited. Post acquisition, the company was renamed as Piramal Healthcare Ltd.

Piramal Healthcare Limited was later merged with the group's flagship pharma company Nicholas Piramal India Ltd. Piramal Healthcare will become the most admired Vitamins & Fine Chemicals company in India by: Achieving leadership in the domestic markets by establishing ourselves as the supplier of choice in HNH & ANH businesses Evolving distinctive product development capabilities in commercial forms & aroma chemicals Achieving globally cost competitive producer status Creating a high performance-oriented culture

Nicholas Piramal India Limited's Vitamin and Fine Chemicals Division has been manufacturing and selling the most IMPORTANT MICRONUTRIENT - VITAMIN A, for the last 40 years. The plant is run professionally and is meeting with the country's requirements in total.

Strengths Of Vitamins and Fine Chemical Division :

1) Basic Manufacturers of Vitamin A.2) Manufacturers of Commercial Vitamin A.3) Manufacturers of Commercial forms of other Fat Soluble vitamins like

Vitamin D, Vitamin E and beta Carotene.4) Manufacturers of Customised Vitamins and Minerals Premixes for Food,

Pharma, Animal Nutrition.5) Customised Micronutrient Sachets.6) Speciality Products for Cosmetic Industry.7) Customised Micronutrient Delivery Sysytem.

Quality Accreditations

The Vitamins and fine Chemicals Division has Quality certified by known Organisations like,

1) WHO-GMP (World Health Organisation)2) ISO:9001:20003) ISO:14001:20044) OHSAS:18001:19995) Kosher Certificate,USA6) Halal 7) HACPP and SQF

Clients

1) Nestle.2) Cadbury.3) Kraft.4) Kellogs.5) Uniliver.6) GSK.7) Johnson and Johnson8) Fotitech.9) Cargil.

Highlights of Piramal Healthcare

Highest growth rate in Pharmaceutical Industry. Growth Rate about 24.6% as compared to Industry Growth rate of 17.7 %.

New product sales have increased from 4.4% in financial year of 2008 to 7.6 % in financial year of 2010.

Strong Presence in OTC segment. Sales Increased and reached 1 Billion in Financial Year 2010. Few leading Brand of Piramal Healthcare are

o Saridono Lacto calamineo Supractiveo Polycrol

Supractive and Itchmol in 2010 are ranked 2nd in the Category. Acquired brand I pill for about 950 Million.

Present status

Piramal Healthcare is one of India's largest companies with an unmatched record of managing JVs/Alliances/Partnerships, and a proven commitment to IPR. With strong brand management and sales capabilities, a US FDA site-approved plant for on-and-off patent APIs and Intermediates, Basic Research, Process Innovation, Custom Chemical Synthesis, Formulations R&D, NDDS, and a world-class, accredited Clinical Research Organization, PIRAMAL HEALTHCARE is poised to emerge as India's pharma powerhouse.

Piramal Healthcare has emerged among the leaders in Indian pharma with a unique mix of inorganic and organic growth fuelled through a strategy of acquisitions, brand building and focused selling, and manufacturing. The company has one of the widest product portfolios in India, spanning nine key therapeutic areas, including the Cardio-vascular, Euro-psychiatry, Oncology, Diabetes Management, Respiratory, Anti-invectives, Gastro-intestinal, and Dermatology.

The company has followed a multi-pronged strategy to integrate and maximize synergies with the planned acquisitions and develop and consolidate its major

strength in marketing to therapeutic niches.

Managed by a team of highly proficient industry professionals, Piramal Healthcare key strengths come from its strong brand building, selling and

distribution, manufacturing and alliance/partnership management skills. The last, especially, are quite unique in the Indian context - few Indian

Pharmaceutical have exhibited such a strong and consistent record in successfully and ethically managing JVs/Alliances and Partnerships as Piramal

Healthcare has.

Its policy of respecting IPR and managing partnerships, in keeping with both the letter and the spirit of written agreements, has been widely respected and

commended by its partners.

Key Recent Developments

Operating Income increased by 12.4% Operating Profit Increased by 26.1% Net profit was increased by 44.8% Domestic Formulations department grew by 16.2% as compared to

Industry growth of 12.2% Marked growth in areas of anti infective, anti diabetic and dermatology. Piramal Healthcare has market share of 4.1% and 2nd fastest growing

companies amongst top 10 companies. Company s Pharma solution sale was Rs.2.7 billion during Q2FY2010 Successful integration of Minrad Inc the revenues from this business

jumped to 885.4 million during Q2FY2009 from 295.9 million.

MANUFACTURING

PIRAMAL HEALTHCARE's Hyderabad-based plant is one of the very few USFDA site-approved plants in India, is capable of all types of reactions. The plant is unique in that it has USFDA approval for the entire facility and not merely a product line, without and deficiency or non-conformity i.e. without any 483s. It is also accredited and approved by MCA of UK, TGA of Australia and the European and Canadian Drug Authorities.

The company's state-of-the-art plant at Pithampur in Central India is reckoned among the finest in this part of the world. Accredited by reputed organizations, the plant also does toll manufacturing for reputed MNCs like Allergan, Novartis, Solvay and IVAX, in addition to a host of leading Indian companies.

The state-of-the-art domestic formulations plant, built at a cost of Rs1.6bn. was commissioned in 2006 in a record twelve months.

PIRAMAL HEALTHCARE has in place all the key capabilities critical to this business - manufacturing, process development (integrating with R&D), IPR protection, BD and supply chain management.

Significantly, PIRAMAL HEALTHCARE is also well placed to offer manufacturing services across the entire life cycle of a product, including the development stage. Their capabilities today include not just lower cost dosage manufacturing, but the ability to manage costs through process innovation and the skills to aid in formulations R&D development and New Drug Delivery Systems.

PRODUCT RANGE

Analgesic/Anti-inflammatory

Antibiotics

Antihistamines

Cardiovascular

Central Nervous System

Diabetes

Dermatology

Endocrinology

Gastroenterology

Multivitamins/Nutraceuticals

Critical Care

Pulmonary/Respiratory

Trauma/Emergency

BRANDS, SALES & MARKETING

PIRAMAL HEALTHCARE can leverage opportunities and manage all challenges that could arise in the domestic Indian market. The restructuring of their product portfolio into primary, secondary and tertiary brands in 2001-02 has helped create power brands that are now growing above industry growth rates. New products have a sharper focus with a specialized management team looking into opportunities and launches. In the last 2 years, PIRAMAL HEALTHCARE has grown market share through a combination of new products, innovative selling and brand management.

In-licensing and Alliances remain an important component of their strategy for the near to medium term. Given its importance in their strategy, the company has a dedicated management team to source new product and alliances opportunities, both domestically and globally.

With a field force of about 3,000, our sales, marketing and distribution network is among the largest in the country. The field forces are IT enabled and segregated into discrete divisions with a disease focus to improve customer coverage. The sizes of the field forces and the strong training and motivation inputs that are continually provided have enabled the company leverage scale and penetration significantly. This can be seen from the fact that despite severe competition across the market, the company has maintained its

Prescription trend and price lines across key segments.

DOMESTIC MARKETING & SALES

Piramal Healthcare has strong brand and brand life-cycle management systems designed to derive competitive advantages in one of the most challenging pharmaceutical markets in the world. The company has one of the widest product portfolios in India, spanning nine key therapeutic areas, including Cardio-vascular, Neuro-psychiatry, Oncology, Diabetes Management, Respiratory, Anti-infective, Gastro-intestinal, Dermatology and NSAIDS. The company has alliances across the globe in key therapeutic areas.

With a sharp the focus on disease areas, the company has specialist field forces that cover more than 75% of all key doctor segments. Each high growth area like Cardiovascular, Diabetes, Central Nervous System, Gynecology, Dermatology, and Oncology has a dedicated field force that is highly trained. The multi-specialty approach to mass consumption brands and products, which require considerable reach and penetration across the country, enabled Piramal Healthcare to derive considerable advantages from skill, scale and size.

The company’s field force has implemented best-in-class practices, including knowledge management support for doctors. The field forces are also IT enabled to improve customer servicing capabilities. CRM investments in the field force are augmented considerably every year. They will invest in augmenting our field force to strengthen doctor coverage and sharpen our divisional focus.

The sizes of the field forces and the strong training and motivation inputs that are continually provided have enabled the company leverage scale and penetration significantly. This can be seen from the fact that despite severe competition across the market, the company has maintained its prescription trend and prices across key segments.

FORMULATIONS PACKAGING AND DISTRIBUTION:

Piramal Healthcare’s Morpeth site carries out packaging for over 300 SKUs and routinely supplies products to over 100 markets including US, Europe and Japan.

The site has a wide range of packaging equipment

Modern packaging facility with individual booths for blister packaging lines

Six off fully integrated blister packaging lines

Output speed up to 450 blisters per min & 300 packs per min

Both cold form and laminate capabilities

Capability to pack multiple actives on same blister strip

Modern and sophisticated ‘defect’ detection and rejection systems on all lines

Bottle filling and packaging capability

Area available for hand packaging to accommodate ‘special’ presentation.

Warehousing and Distribution facilities:

o GMP warehouse with up to 7000 pallet locations o Low temperature storage area separately available

All stock transfers controlled by validated computerized stock control system

Own Artwork development and generation teams

EXECUTIVE SUMMARY