Lupin Limited Corporate Presentation

1
Lupin LimitedCorporate Presentation

• August 2006

2
Safe Harbour Statement

• Materials and information provided during this
  presentation may contain forward-looking
  statements. These statements are based on
  current expectations, forecasts and assumptions
  that are subject to risks and uncertainties which
  could cause actual outcomes and results to differ
  materially from these statements.
• Risks and uncertainties include general industry
  and market conditions, and general domestic and
  international economic conditions such as
  interest rate and currency exchange fluctuations.
  Risks and uncertainties particularly apply with
  respect to product-related forward-looking
  statements. Product risks and uncertainties
  include, but are not limited, to technological
  advances and patents attained by competitors,
  challenges inherent in new product development,
  including completion of clinical trials claims
  and concerns about product safety and efficacy
  obtaining regulatory approvals domestic and
  foreign healthcare reforms trends toward managed
  care and healthcare cost containment, and
  governmental laws and regulations affecting
  domestic and foreign operations.
• Also, for products that are approved, there are
  manufacturing and marketing risks and
  uncertainties, which include, but are not
  limited, to inability to build production
  capacity to meet demand, unavailability of raw
  materials, and failure to gain market acceptance.
• The Company disclaims any intention or obligation
  to update or revise any forward-looking
  statements whether as a result of new
  information, future events or otherwise.

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Contents
4
Introduction . . .
Section 1
5
Vision

• To be an Innovation led Transnational
  Pharmaceutical Company

Values

• Superior Performance
• Entrepreneurship
• Customer Orientation
• Working Together
• Respect for People
• Integrity

6
Pharmaceutical Industry Overview
Section 2
7
Global Pharmaceutical Industry Overview

• Global Pharmaceutical market at US600 billion
  market in 2005
• Market expected to grow at a rate of 6-7
• Ten major markets account for almost 81 of the
  market in terms of revenue
• North America is the single largest market
  accounting for approx. 50 of global sales and is
  expected to grow at a CAGR of 5-8
• Japan, the second largest market, at US60bn is
  growing at 6
• EU experiencing growth at 7 at US 170bn
• Growing importance of generics in regulated
  markets
• Pressure from healthcare providers and insurance
  companies to reduce healthcare costs driving
  usage of generic drugs
• Increasing patent expirations driving generic
  drug availability
• Stringent testing requirements and declining RD
  productivity has led to limited new drug pipeline

8
Indian Pharma Emerging Scenario
Domestic Market US 5bn Exports US
2.5bn Total US 7.5bn
Indian Pharma
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Section 3
Approach
10
Lupin Strives For
11
Creating an Edge

• Technology
• New Delivery Systems
• Complex Products
• Bottom Quartile of costs for generic products
• Integration
• NCE
• Markets
• Expansion Efficiency in Sales Force
• Direct to Market approach in US
• Build on Paediatric
• On-shore presence in 5 select countries
• Alliances
• Partnerships in Japan, Australia, Latin America
• TB Institutional
• Alliances with Global majors for certain markets
• New therapies (In-Licensing)

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Regulated Markets (US) Lupin Approach
LUPIN

• Other Regulated Markets
• Focus on Branded Products
• Partnerships Alliances

13
Developing Markets Lupin Approach
14
Advanced Markets
Section 4
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US

• Branded
• Suprax continues its prescription growth over
  5000Rx per week
• Sales force internalised
• Copromotion of Atopiclair with Chester Valley
• New Products in 2006-07
• Generics
• 7 products launched in the US in 2005-06
• Timely launch of Ceftriaxone and Cefprozil
  immediately on expiry
• Launched Lisinopril in Dec05 Consolidating
  Market share
• Commenced Direct Marketing (DTM) in Dec05
• Total ANDAs filed over 40

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Generics US
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Other Markets

• Europe
• Ramping up MAA/ Dossier filings
• Alliances in progress
• Revenues commenced
• Expressions of interest at advanced stages
• Japan, Australia LA
• Expressions of interest moving forward
• MDR-TB sales commenced in LA
• South Africa
• JV with Aspen (Anti-TB FDC) for Africa

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Robust pipeline
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Other Emerging Markets
Section 5
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India Region Formulations

• Growing at 23 vs 16 industry average (FY 06)
• Contributed by CVS (41), and GI (38)
• Anti-Asthma range launched in Aug 04, already
  number 2 in its segment and growing (119)
• Signoflam (Endeavour), the best product launch
  (IMS Data) of the year 2005 in the industry
• Lupinova driving foray into rural and less
  penetrated regions
• Top 10 brands

Rs. Mn ORG-MAT JAN 06
introduced in last 3 years
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Other Markets

• CIS
• Posted a healthy growth CAGR of 44 over last 4
  years
• Expanding Field Force
• Russia, Ukraine, Azerbaijan, Kazakhstan,
  Uzbekistan
• Increased market penetration
• Around 20 Products Registered in each around 10
  under Registration
• SE Asia
• Alliance with GSK
• Middle East
• Will be shared as Alliances progress
• Africa
• Alliance with Ranbaxy
• GTB
• Posted a healthy growth 122

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API Intermediates
Section 6
23
API Intermediates

• Sales 11 growth
• Ceftriaxone launched in US
• Focus on Cost Quality Leadership and
  Reliability
• Long Term Supply Contracts
• Global Leadership in areas of therapeutic
  presence
• Future expansion only at SEZs

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Global Position in API Intermediates
Global Rank
Therapeutic Segment
Product
1
Anti-TB
Ethambutol
1
Anti-TB
Rifampicin
1
Anti-TB
Pyrazinamide
2
Cephalosporin - Intermediate
7ACCA
1
Cephalosporin - Intermediate
7ADCA
1
Cardiovascular
Lisinopril
Two new products in 2006-07
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Research Development
Section 7
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RD

• Over 350 scientists
• Actively engaged in Process Improvement/
  Formulation Development/NCE/ NDDS
• Expenditure (FY0506) Rs.1030mn 6.2 of Sales
• Continue investing incrementally
• Filings rate to continue
• Going Forward
• NDDS
• Paediatrics range
• Patented Technology platforms
• Products for paediatric pipeline

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RD

• NCEs
• Anti Psoriasis (Herbal) - In Phase II
• Anti Migraine - Nearing completion of Phase II
• Anti Psoriasis (Chemical) - In Phase II
• Anti TB - In Phase I

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Patents
Patents Issued, Allowed Pending 302
Issued, Allowed 71
Pending 231
US 14
RoW 47
EU 10
US 31
EU 18
RoW 182
EU
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Business Update
Section 8
30
2005-06
Sales Growth
37
(Rs Mn)
34
40
Revenue Composition
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2005-06

• Revenue Growth 37
• EBITDA margin 18
• PBT 14
• PAT 11
• ROCE 22

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Geographical Coverage
2004-05
Domestic
55
2005-06
Exports
45
33
Therapeutic Coverage
34
API vs FD
2004-05
API
2005-06
55
FD
45
35
2006-07 Q1
(Rs Mn)
33
17
(Rs Mn)
36
Section 9
Facilities
37
Lupins Facilities
Jammu
Tarapur
Mumbai
Pune
Goa
Manufacturing
Research Center
Head Office
38
Section 10
Management
39
Expert Management Team
13
40
and Beyond . . .
Section 11
41
Going Forward with

• New Markets/ Initiatives
• Enter Advanced Markets
• EU
• Japan
• Australia
• South Africa
• Establish On-shore presence in 5 select markets
• Acquisition
• Brands in US
• Businesses in select countries of EU
• Domestic

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Going Forward with

• Explore New Therapies/ Business Segments
• Therapeutic Areas
• Oncology
• Dermatology
• Business Segments
• Biosimilars
• CRAMS

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Thank you