Ranbaxy Laboratories

Limited
To become a Research based International
Pharmaceutical Company

Submitted By-:
Anand Kumar Singh S-03
Pankaj Kumar Jha S-13
Sandeep Kr Sharma S-20
Prabhat Kumar S-15
 INTRODUCTION

 Type: Public (BSE: 500359)

 Industry :Pharmaceutical
 Founded :1961
 Headquarters: Gurgaon, Haryana, India
 Products :Pharmaceuticals and diagnostics
 Employees :1100 in R&D
 Website: www.ranbaxy.com
 Company profile
Ranbaxy Laboratories Limited (Ranbaxy),India's largest
pharmaceutical company.
Ranbaxy was started by Ranbir Singh and Gurbax Singh in
1937
Ranbaxy was incorporated in 1961 and went public in
1973.
Ranbaxy today has a presence in 23 of the top 25
pharmaceutical markets of the world.
Contd………..

For the year 2009, the Company recorded Global

Sales of US $ 1519 Mn.
In 2009, North America, the Company's largest
market contributed sales of US $ 397 Mn, followed
by Europe garnering US $ 269 Mn and Asia
clocking sales of around US $ 441 Mn.
In June 2008, Ranbaxy entered into an alliance
with one of the largest Japanese innovator
companies, Daiichi Sankyo Company Ltd.,
 Management team

Founder: Ranbir Singh and Gurbax Singh

Chairman : Dr. Tsutomu Une
M.D.+C.E.O. : Mr. Atul Sobti
Expected C.E.O. :Malvinder Mohan Singh
President (R&d): Dr. Sudershan K. Arora
 Product profile
Valacyclovir
Simvastatin
Co-Amoxyclav
Ciprofloxacin and Combinations
Amoxycillin and Combinations
Isotretinoin
Ketorolac Tromethamine
Loratadine and Combinations
Ginseng+Vitamins
 Cephalexin
Atorvastatin and Combinations
The India Pharma Story – Davos 2006

Source – Financial Times

 India in Global Generics
% Share of USA DMF filings

India China
2004 27% 9% Highest No
2005 37% 10% of DMF filings
2006 44% 14%
Q4’06 47% 9%

Source: US FDA / J P Morgan Research

FDA Approved
Plants in India
 India in Global Generics
ANDA Filings in USA by Indian Companies
160
144
120

80

64
40
46
0 24
2002 2003 2004 2005

One in every four ANDAs filed by Indian Companies in top US FDA filers
(Source: KPMG)

No Chinese generic company has yet filed a US FDA ANDA but expected
in 2008
 Ranbaxy Today
Worldwide Presence
Amongst Top 10 Global Gx companies

Ground presence in 49 countries,

products sold in > 125

International business ~ 80% of sales

Manufacturing locations in 11 countries

Global Sales > 11,000 employees, 51 nationalities

$ 1339
1 9%
GR Strong Generics & Innovative research
CA
$ 972 capabilities

$ 553

2001 2003 2 0 06
 Highlights - 2006
$ Mn 2006 2005^ %

Financials Sales 1339 1145 +17%

EBIDTA* 16% 7% -

PAT 114 60 +90%

Strong growth in USA

Markets Leadership position in home market

Robust performance in Branded Gx

markets

Exclusivity in Simvastatin 80 mg tablets

Inorganic impetus

* % sales, ^ excludes sales from discontinued operations .i.e . Allied Businesses divested in 2005
 Increasing Focus on Costs
Sales growth +17%
SGA growth - Nil

Optimizing SG&A cost structures

2006 2005

% Bio-Studies (BA/BE^) conducted

Improving R&D cost efficiencies 2006 2005
In-House 71% 28%
Overseas CRO 8% 61%
Indian CRO 21% 11%

Advanced Markets Low Cost Countries

Increasing sourcing from low cost 35%

20%
65% 80%
countries .i.e. India & China

2005 2008*

* Estimate, ^ Bio-Analytical / Bio - Equivalence

 Geographic Sales Split - 2006
Africa
$85, + 24% Eu ro p e
$332, + 23%*

6% 25%
Asia 27%
$367, + 19%
Global Sales – 2006 (US$ Mn)
33% DF 1224 +20%
API 115 - 9%
Am e rica s
$440, + 18% Total 1339 + 17%

Sales 2006 – Dosage Forms US$ 1224 Mn

Key New Markets – Canada, Spain, Italy, Australia & Japan

* Including CIS, RoW – Rest of the World

 Geographic Sales Split – Q1 2007
A frica
$85, + 24% Eu ro p e
$332, + 23%*

7% 31%
A sia 27% Global Sales – Q1 2007 (US$ Mn)
$367, + 19%
DF 332 +30%
29%
API 23 - 25%
A m e rica s Total 355 + 24%
$440, + 18%

Sales Q1 2007 – Dosage Forms US$ 332 Mn

* Including CIS, RoW – Rest of the World

 USA

200
Products pending approval

160
Second largest
120
pipeline
# of ANDAs

80

40

0
Teva Ranbaxy Sun Mylan Watson DRL Barr Par

Source: Merrill Lynch Equity Research, February 2007

 USA
Potential FTF Challenges
45

36 Second largest
FTF pipeline
27
# of FTFs

18

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Source: Merrill Lynch Equity Research, February 2007

 European Union
Sales
Presence in 23 of the 27 EU countries 300

$ 267
Regulatory changes & price impacted 250
Romania
Western European markets $ 214
200

Strong product flow in ’07 with 150

multiple Day 1’s

100

Major countries
50
- Germany : AOK business
0
- France : Supplies from India
2006 2005
- UK : Gabapentin launch

RoE to maintain growth momentum $ Mn

 India
Fastest growing Company in India on MAT basis
(Source :ORG-IMS Mat Mar 2007) Ranbaxy
GSK
65 new products introduced in 2006 5.0%
Cipla 5.1%

4.9%

First to market 10
NDDS 6
In-licensed 8

No 1 NDDS Company with 8% MS. Contribution to total sales ~ 9%

Source : ORG – IMS Audit Nov 2006, Moving Quarter Basis

Dedicated task forces for Specialized & Chronic therapies

Chronic share contribution at 21% (2005 : 20%)

21 brands in Top 300 of Industry ( 2005 :19)

Source : IMS - ORG

 Research & Development

New R&D facility for Drug

Discovery Research (DDR)

R&D III

R&D I R&D II R&D IV

 Research & Development
Dedicated Facilities for Innovative & Generics Research

> 1400 R&D Personnel ( ~ 250 PhD’s)

8 - 10 NCE molecules in pipeline

NDDS based products ( 4 platform technologies)

R&D collaborations

Alliance / Out-licensing
Collaboration in in NDDS
DDR

Out-licensing
in DDR
 Ranbaxy – GSK Collaboration
Expansion of strategic alliance established in 2003

Take leads beyond candidate selection to POC* in man

Therapeutic area focus of AI, Metabolic, Anti-inflammatory

and Oncology

> US$ 100 mn in milestone payments and double digit

royalties on commercialization of a product

Co- marketing rights in India

First candidate identified for Respiratory Inflammation

Proof of Concept
Recent Acquisitions & Alliances

Terapia (Romania) Zenotech (India)

Be-Tabs (South Africa) Krebs (India)

Allen (Italy) Jupiter Biosciences*(Ind.)

Ethimed (Belgium) Cardinal Drugs (India)

Mundogen (Spain) Auto-injector Tech.(USA)

* Subject to due diligence

 Niche Alliances
Increasing focus on chronic / lifestyle diseases segment

High entry barriers - technology & resource intensive

Zenotech Jupiter* Krebs

Bio-similars & Peptides Fermentation

Oncologics based products

* Subject to due diligence

 Financials
Figures in US$ Mn
Particulars 2006 % Q1 2007 %

Sales 1339 17% 355 24%

EBITDA 207 144% 43 35%

% sales 16% 12%

OPBT* 131 481% 36 102%

PBT 226% 37 94%

144

PAT 114 90% 29 81%

* 2005 sales excludes sales from discontinued operations .i.e Allied Businesses. OPBT – Operating profit before tax
 In Summary
A strong 2006 performance on all parameters

Buoyant performance across key geographies

Continuing focus on cost optimization

Robust product flow

Growth through organic & inorganic

Discovery pipeline progressing well

Global Generic rank – 9th / 10th

Thank You …