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BUSINESS PLAN (COLOMBIA) IPSENs PRODUCTS

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BUSINESS PLAN

IPSEN 2005-2008
Human Growth Hormone Market Segment:
Prescri pti on for Growth


BUSINESS NAME : COLOMBIAN INVESTORS IN PHARMA BUSINESSES
Presented By : DNAmetrics Ltda Consulting Firm and Project Management
Address : Calle 22 A No. 44-19 Bogot DC, Colombia
Tel : (57)(1) 344 0414 337 9738
Fax : (57)(1) 337 9738
Mobile : (57) 315-362 6497

Who to contact : Mr. J OSE LAGUADO (Business Development Manager and
Project Director) or
: Mrs. LILIANA RAMREZ (Co-founder, Investor)

e-mail : jose_laguado@dnametrics.com
liliana.ramirez@quimiolab.com


Industry Sector : Biotechnology, pharmaceutical business, healthcare.


Year of Foundation : 2005



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EXECUTI VE SUMMARY.

This Business Plan describes some of the activities and strategies proposed for our future businesses for 2005-2008.

COUNTRY BACKGROUND.

COUNTRY
PROYECTIONS
2004 2005py 2006py
GNP (USD Billions) USD
103.41
USD
107.15
USD
106.46
USD Per Capita 2.282 2.327 2.276
% National Growth 3.9 3.4 3.6
POPULATION (Millions) 45. 3 46.0 46.8
IPC 5.5% 5.2% 5.5%
INTEREST RATES 15.7% 16% 17.5%
EXCHANGE RATE (1 USD) 2.390 2.509 2.760
EXPORTS (USD Millions,
FOB)
16.483 17.719 19.048
IMPORTS (USD Millions) 15.626 17.033 18.566
FISCAL DEFICIT (% GNP) -1.2% -2.5% -2.4%
UMEMPLOYMENT RATE 13% 13.2% 13%
Source: Departamento Nacional de Estadstica (DANE), Banco de la Repblica,
Departamento Nacional de Planeacin, Revista Dinero J un 2005)



CORPORATE.

These Colombian investors are interested in forming a new pharmaceutical importer, distributor and sales company
recognized by its Innovation, quality, customer service and patient education in the healthcare and Pharma Industries.
These investors have great experience working with Pharma products such as Human Growth Hormone (HGH).

The aim is to form new business units with exclusive products and technology from International well known business
partners for:

Human Growth Hormone
Neuromuscular disorders (i.e. Botulinum Toxin)
Other pharmaceutical products with local market potential (i.e. IGF-1)


Our Mission:

To improve health, quality of life, longevity and medical support by providing innovative solutions to hospitals, clinics,
medical centers and patients


BUSI NESS STRATEGY.

Our business strategy will be lead by:

Patient care.
Customer satisfaction.
Market focus on high profitable segments.
Well trained scientific staff.
Marketing innovation.

Our business Identity is to combine experience, "know-how", customer relationship, technical and scientific
applications, customer needs, importation processes, just in time deliveries and the ability to create a higher
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satisfaction level than our competitors. Putting all factors together will make of this new company an excellent
alternative for customers in the private and government sectors.

CORPORATE STRATEGY.

1. To focus our diagnostic products in specific fields of medicine: Endocrinology, metabolism and neuromuscular
disorders in the Phase I.

2. To concentrate our marketing efforts in selected market niches among the fields of applications explained above with
high profits and Return Over Investments (ROI) such as HGH and botulinum toxin.

3. To enhance the marketing and sales of these pharmaceutical products locally and Internationally through
subsidiaries, sales' networks and partnerships agreements in order to ensure sustained and profitable growth.

4. To promote educational activities and evidence based laboratory medicine as an aid in medical decision making for
HGH deficiency, Turner Syndrome.

5. To implement and to maintain a Local and International training program attending workshops, distributor meetings,
seminars and congresses to improve the experience and scientific background or our human resource group.


PRODUCTS AND SERVI CES.

Hormones are chemical substances produced and secreted into the blood stream by glands (for instance the thyroid
gland). They stimulate practically all body functions, such as growth, development, reproduction and even behaviour
and mood. Growth hormone is produced by the pituitary gland, a gland the size of a small pea located at the base of
the brain. It circulates throughout the body and has a number of functions, the principal one of which is the
development of the bone structure and muscles in children and adults.

Our product portfolio will be formed by International partners with great interest on developing markets in Latin
America. Our products will use state of the art technology and innovative applications.

Some of the Potential partners we are discussing business with by J une 2005 are:

INTERNATIONAL
PARTNERS (*)
PRODUCT
MANAGEMENT UNIT
MAIN PRODUCT LINE TECHNOLOGY
IPSEN
Endocrinology,
neuromuscular disorders

AXCAN PHARMA Gastroenterology
(*): Potential partners we are discussing business with.


ABOUT THE MARKET AND SEGMENTS.

Following there is a small brief of the Colombian pharmaceutical market and segments of interest.

Pharmaceutical sales reached USD 1.1 Billion growing at 23% in 2004.
The market is really atomized and there are so many players that neither player has more than 8% of market
share.
According to IMS Health, the Ethical market is disputed by 218 national laboratories with 3.488 products.
There are 39 Multinational laboratories and 1.559 drugs.
National manufacturers 56% in volume and 32% in dollars
Multinationals 44% in volume and 68% in dollars.
Colombia has the second lowest average price in drugs in Latin America.
Per Capita expenditure on pharmaceuticals USD 26 in 2003 (Latin American average, USD 44)
Per Capita expenditure on health USD 234 in 2002 (Latin American average, USD 342)
Qualified health personnel: 1 physician x 1.000 people and 1.2 hospital beds x 1.000 people.
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We have defined 2 major market segments for the new Pharma units:

Pediatric Endocrinologists: there are only 30 registered medical specialists in Colombia (according to
ACEPCOL (Asociacin Colombiana de Endocrinologa Peditrica, Pediatric Endocrinologist National
Association)
Patients: delivering directly to the final consumer.

Among these segments we found the following opportunities:

Human Growth Hormone business unit:

4 out of every 100 (0.04%) children suffer a problem related to growth. We define our target age between
0 and 9 years old (9.543.826) for a total of 3.817 potential patients.
3.817 patients at USD 10.200 per patient, would be a USD 38.938.810
Onl y 30% of those pati ents wi l l seek medi cal hel p and wi l l be weal thy enough to pay for treatment
costs. Then actual potenti al market i s USD 11.681.643
1 out of 4.000 people suffer an alteration in HGH secretion in their organisms with or without other
hypothalamus problems.
1 out of 2.000 born girls with great probability will develop Turner syndrome
90% of HGH deficiencies in adults are caused by benign pituitary tumors (adenoma)

About the commercial balance and importation data from DIAN, we gathered total imports for 30.04.39.10.90 (drugs
with mixed or unmixed products for therapeutic use containing hormones without antibiotics):

Average Importations from 2000 to 2004 for 30.04.39.10.90 were USD 23 Millions.
Tendency to reduce importations in this segment.
Further information is needed to elucidate the market throughout this concept.

About the competitors in the HGH market segment:

The competition in this market is intense, because different human growth hormone products are substantially
chemically identical.

Pfizer has 50% market share regarding pediatric endocrinologists.
Serono has 30% market share regarding pediatric endocrinologists.
Bio-Reg Pharma (Dong-A) has 15% market share of pediatric endocrinologists.
Other players (Eli-Lilly, Novo and Chalver) have the other 5%.
Estimated competitors sales for HGH:

ESTIMATED SALES FOR THE H.G.H. COLOMBIAN
MARKET (in USD)
49%
17%
17%
17%
33%
PFIZER
SERONO
BIO-REG (DONG-A)
OTHERS (Lilly, Chalver, Novo)



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Botulinum Toxin business unit:

Nearly 12.000 patients will seek medical advise for esthetical treatments.
The botulinum toxin treatments are the number one non-surgery procedures performed in Colombia
accounting up to 80% of those events.

CONSUMER PROFI LE.

Young Married couples (35-43 years old) with children (5-14 years old) suffering a growth problem, high socioeconomic
status, wealthy consumers for long and expensive treatments.

COMPETI TORS PROFI LE.

The next table review market competitors sales for 2004 and other important financial information

Sales and Financial Information on the Colombian Market Competitors for HGH and Botulinum Toxin.
Source: 5.000 Companies in Colombia. Revista Dinero, J unio 2005.
COMPANY
SALES 2004 ASSETS Net Profits Net Profit/Equity EBITDA/Sales
USD x Million Growth Vs 2003 USD Million % %
Pfizer 103.2 422.4 72.2 5.57 31.9 10.9
Eli-Lilly Interam. 28.5 9.1 19.7 -0.51 -3.2 6.7
Chlaver de Col. 21.4 43.4 19.1 1.37 10.8 16.5
Scandinavia Pharma 18.3 17.7 16.7 1.11 8.7 24.3
Allergan de Col. 12.4 1 6.4 0.50 14 15.2
Serono de Col. 5.2 11.3 2.3 0.16 7.7 9.5


FI NANCI AL STATEMENTS.

Total Revenues of USD 2.4 Million in 4 years.
EBITDA of USD 781.974 in 4 years
Net income for USD 508.233
Projected Return Over investment (ROI) of 90% in a 8 year projection.
Investment Payback-analysis return in 1.3 years using a 20% discounted rate.
R.O.I. after using discounted rate analysis and a 10 year projection, 379%.

$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
1st Year 2nd Year 3rd Year 4th Year
Sales Gross Profit
Operating Expense Income Before Taxes


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1. PRODUCTS AND SERVI CES

Children with growth hormone deficiency present an abnormally slow rate of growth and a very reduced muscle mass.
Affecting 1 in 10 000 births, growth hormone deficiency is not exceptional in children worldwide. In adults, growth
hormone deficiency can have a number of effects: an accumulation of fatty tissue, an increase in cholesterol levels
leading to an increase in the risk of cardiovascular accidents, a decrease in bone density, impaired sexual function. In
children, the goal of growth hormone therapy is to restore linear growth and to obtain a final height as near to the
normal as possible. In adults, the goal of growth hormone therapy is to correct symptoms and decrease the risks
connected with deficiency.

It has been estimated in Colombia that 4 out of every 100 children will have growth deficiency.

The competitors growth hormones are available in the form of pre-filled syringes and in the form of cartridges for pen
injection delivery. Thus, the presentation should be liquid and for both, syringes and pen injection delivery.


1. PRODUCTS PLANNED RESPONSE.

For small players, the Pharma industry is an extremely difficult sector. To be a successful supplier of Pharmaceutical
products in Colombia the new company needs to work on:

Products which are novel and innovative for customers which means finding new market niches with slow
growth but with high profits.
Cost-effective in products and logistics by reducing importation costs and delivery times.
Products clinically relevant for our patient database and endocrinologists.


2. NATURE OF THE INDUSTRY

According to the Encuesta Manufacturera del DANE de 2000 the pharma industry generates 16.567 jobs. Regarding
export and international trade and commerce, the table below can give you a small brief on the Colombian pharma
industry

J ust as many other international markets, in Colombia we found:

The Ethical market: in 2002 had 80% of the pharma sales.
The generics market segment with nearly 20% of the sales (including OTC)
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The products we are interested from IPSEN are:

Nutropi nAq
Somatul i n
Testi m
Dysport

INNOVATOR CONCEPTS FOR THE COLOMBIAN MARKET (CUSTOMER NEEDS)

Needle-free delivery system
Room Temperature Storage
Oral delivery systems (Pain-free)
Product accessibility for non-wealthy patients or family groups (lower prices)
Market approval for AIDS wasting treatment
New market uses



3. PRODUCT FOCUS FROM IPSEN


The main product to work with Ipsens products during 2005 and 2006 will be:

1. NutropinAq
2. Somatulin

For the years 2006, 2007 and 2008, we plan to introduce new products such as:

1. Testim
2. Dysport

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2. HUMAN RESOURCES

Our team is formed by Bachelors of Science, business administrators and well trained sales specialists. As an overview
of our team:

Mrs. Li l i ana Ramrez, General Manager. B.Sc. (Bacteri ol ogy)

Brings over 15 years of experience selling and marketing diagnostic and life science products. Operating Management skills
in other distributor companies. Successfully co-founded and worked with other start up companies (Quimiolab). Former co-
founder of Bio-Reg Pharma (Dong-A HGH distributor Colombia). Co-founder of the new pharma company representing HGH.
Plans and directs all aspects of an organization's policies, objectives, and initiatives. Responsible for the short- and long-term
profitability, growth of the company, matters of government and regulations, supervises, and governs corporate projects.
Reviews proposals to determine costs, timeline, funding, staffing requirements, and goals.

Mr. Jose Laguado, Busi ness Devel opment and Marketi ng Counsel i ng. B.Sc. (Mi crobi ol ogy, Marketi ng
Management Speci al i st).

8 years of experience in business development in biotechnology companies, technology transfer, managing sales teams and
developing a go-to-market strategy for new product introduction. Achievements include corporate growth over 50% in
diagnostics and molecular biology divisions. Directs and oversees and organization's international sales policies, objectives,
planning function to promote organizational effectiveness and related initiatives. Successfully co-founded and worked with
other start up companies (Biogenix, DNAmetrics and TechNovus). Co-founder of the new pharma company representing
HGH.

Mrs. Mari tza Garni ca. Operati ng Di rector. BA.

She brings over 12 years of experience in business administration, operational management, directing the work of others,
planning procedures and creativity. Directs and oversees an organization's operational (non-manufacturing) call center,
catalog sales function, including sales and customer service, claims programs, develop proposals, collections of
overdue/delinquent accounts policies, objectives, initiatives and and monitor progress. She is an expert in negotiation and
customer service. Co-founder of the new pharma company representing HGH.

Mr. Baudi l i o Parra. B.Sc. (Chemi st ry). Di stri ct Busi ness Manager

He has great experience in field supervision, sales force management and implementation of marketing strategies increasing
profitability and achieving sales objectives in other pharmaceutical companies for 18 years. Some of his contacts
encompasses HMOs, third party payers, GPOs, IHNs, PBMs and LTCs. Reviews changes to the marketplace and industry
and adjusts marketing plan accordingly. Directs sales training programs to ensure maximum effectiveness of the sales force.
Former Sales representative of Bio-Reg Pharma (Dong-A HGH distributor Colombia) for 3 years. Co-founder of the new
pharma company representing HGH.

Mr. Edwyn Avel l aneda. BA.

His experience is based on directing all aspects of the distribution operation including merchandise inventory, shipping and
receiving, and maintenance of facilities ensuring timely deliveries to maximize sales. He is familiar with a variety of the field's
concepts, practices, and procedures. Directs and oversees competitive financial analysis and statistical studies. Reviews
reports on historical and future trends in performance, return and depreciation to determine appropriate paths for financial
development. Former co-founder of Bio-Reg Pharma (Dong-A HGH distributor Colombia). Co-founder of the new pharma
company representing HGH.

Sal es Force Speci al i sts. To be defi ned.

Their main goals will be to develop and lead the execution of sales strategies that increase profitability to maximize sales
objectives. These persons will be in charge of regional budgets, sales volume and will create an effective network within the
managed care arena, including regulatory agencies and lobbyists.

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3. MARKETI NG PLAN

1. ABOUT THE MARKET

Recombinant technology allows us to solve many of the problems associated with commercialization of complex
pharmaceuticals from natural sources. Because of the nature of recombinant production, manufacturers can closely
control the quality and purity of the products and more easily achieve batch-to-batch consistency.

In 2003, worldwide human growth hormone (HGH) sales were 1.8 Billion. According to a DataMonitor report, easy
administration of HGH is a key factor in driving uptake, especially among the pediatric patient population. Although the
HGH market is highly competitive, with more than five players, competition MIGHT BE based on product pricing.
Companies developing innovative needle-less or any other pain less drug delivery systems enjoy significant
competitive advantage.

Sales of growth hormone are significant, more than $US 1.5 billion, and are spread between a number of
biopharmaceutical companies. Market growth is about 3% per annum.

In Colombia, the pharmaceutical sales reached USD 1 Billion growing at 23% in 2004. The market is really atomized
and there are so many players that neither player has more than 8% of market share.

The health service in Colombia is rather more basic, with a contributory regime for public-sector staff, pensioners and
workers earning more than twice the minimum wage; and a subsidized regime for the very poor. But here, too, the
government has announced plans to transfer healthcare provision to seven state social enterprises, which will be
administratively autonomous and have their own budgets.


2. TARGET POPULATIONS

We focus our marketing of growth products on capturing new patients, since patient loyalty is particularly strong in this
market.

To do this we target pediatric endocrinologists and leading pediatricians in clinics and treatment centers, children
between 5-12 years old and young married couples having children with growth problems.

In addition to the presence of competing products in the growth retardation market, we believe that competition in this
market is enhanced by the fact that parents show considerable brand loyalty once they have selected a product for
treatment of their child. As a result, much of the competition between pharmaceutical companies in this market must
focus on the relatively small number of new patients beginning treatment each year.


3. COST OF TREATMENT

The cost of treatment with growth hormone for children in Europe is relatively high, approximately, USD 17 000 pour a
child of 20kg. But, with treatment, these children will reach a satisfactory height. Taking into consideration an average
price per mg, an average weight in Kg and 1 dose of 1 unit/kg/week, In Colombia, a years treatment costs would be
COP$24 Millions or USD 10.212.

Unlike Europe, Human growth hormone IS NOT reimbursed for children neither for deficiency, Turners syndrome,
Prader-Willi's syndrome, intrauterine growth retardation, chronic renal insufficiency nor the cases of short stature.





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4. POTENTIAL MARKET

According to our market analysis for Human Growth Hormone business unit, we found the following interesting
information:

4 out of every 100 (0.04%) children suffer a problem related to growth. We define our target age between
0 and 9 years old (9.543.826) for a total of 3.817 potential patients.
3.817 patients at USD 10.200 per patient, would be a USD 38.938.810
Onl y 30% of those pati ents wi l l seek medi cal hel p and wi l l be weal thy enough to pay for treatment
costs. Then actual potenti al market woul d be USD 11.681.643
1 out of 4.000 people suffer an alteration in HGH secretion in their organisms with or without other
hypothalamus problems.
1 out of 2.000 born girls with great probability will develop Turner syndrome
90% of HGH deficiencies in adults are caused by benign pituitary tumors (adenoma)


Sales and Financial Information on the Colombian Market Competitors for HGH and Botulinum
Toxin.
Source: 5.000 Companies in Colombia. Revista Dinero, J unio 2005.
COMPANY
SALES 2004 ASSETS Net Profits
Net
Profit/Equity EBITDA/Sales
USD x Million
Growth Vs
2003 USD Million % %
Pfizer 103.2 422.4 72.2 5.57 31.9 10.9
Eli-Lilly Interam. 28.5 9.1 19.7 -0.51 -3.2 6.7
Chlaver de Col. 21.4 43.4 19.1 1.37 10.8 16.5
Scandinavia Pharma 18.3 17.7 16.7 1.11 8.7 24.3
Allergan de Col. 12.4 1 6.4 0.50 14 15.2
Serono de Col. 5.2 11.3 2.3 0.16 7.7 9.5

Nevertheless, a great turnover of the the big-players, such as Pfizer and Eli-Lilly, come from other drugs (i.e.
Viagra, Insulin and others)


Now, according to the National Information system of Impor/Export, the market tendency is to reduce participation on
the commercial balance. However, further information is needed to support this sentence. Today we know that during
the past 3-4 years, the average i mportati on vol ume i s cl ose to be USD 23 Mi l l i ons.


5. TRENDS AND REGULATIONS

Due to the high cost of treatment and the high market share of generics in our country, there is a considerable
incentive for generic biologics companies to develop low cost generic forms of HGH. Since virtually all HGH products
are identical, products are defined through:

Innovativeness of the delivery technology.
Approved indications of the drug.
Marketing strength of the company.
The cost of treatment.

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Some of the trends and regulations driven the Colombian market for pharmaceutical products are:

1. Cost containment pressures such as tightening reimbursement rules for the majority of the tests and pressure
on physicians to prescribe fewer ethical drugs.
2. A fierce competition intensive in promotion activities based on prices, high marketing expenditures and
diminishing product differentiation.
3. Declining prices and low margins (Mainly in the Public sector for tenders and proposals).
4. Multinational dominance and increasing concentration with excellent market position (Pfizer)
5. Long delays in approvals by INVIMA of new products entering the market (INVIMA, i.e. like the Colombian
FDA office).
6. HGH and botulinum toxin ARE NOT part of the Obligatory health programs (POS). Thus, institutions are
obligated to give HGH treatments in several occasions by means of law and patients suits.

Manufacturers of drugs are required to comply with current Good Manufacturing Practice (GMP) regulations and similar
regulations which include requirements relating to quality control and quality assurance as well as the corresponding
maintenance of records and documentation. Manufacturing facilities are subject to inspection by INVIMA for approval in
countries other than UNITED STATES, CANADA, GERMANY, SWITZERLAND, FRANCE, UNITED KINGDOM,
DENMARK, HOLAND, SWEDEN, J APAN AND NORWAY.


6. PROMOTION ACTIVITIES.

We utilize common pharmaceutical company marketing techniques, including physician detailing, advertising, targeting
opinion leaders and other methods. We also employ marketing strategies specific to our individual product lines.

Other factors which should help us address competition include ancillary services provided to support our products,
customer service and dissemination of technical information to prescribers of our products and to the health care
community, including payers.

Our promotion activities for 2005 will include:

Investing in sales force and marketing to introduce a new drug and concept among patients, physicians and
Institutions.
Educational activities such as Workshops, technical flyers and application notes for patients and physicians.
Medical promotion using the database from ACEP : Asociacin Colombiana de Endocrinologa Peditrica
(http://www.acepcol.org) , the most important Pediatrics Endocrinologists.
To prepare a e-commerce strategy (http://www.hormonadecrecimiento.com.co) together with National
associations (i.e. ACEPCOL) to be launched in 2006 including information on benefits, clinical, treatment
according to local guidelines, differences between injectable and other presentations for HGH, among others.


7. DISTRIBUTION.

Because we focus on niche markets with a limited number of prescribing physicians, we believe that our sales force
can efficiently penetrate each of our target markets. In general, our products are sold to wholesale distributors or
directly to medical centers (Institutions).

Our distribution will go directly to the customers.

Patients: 30% of the sales
Institutions: 70% of the sales

Distribution Program. This program is designed to track and manage HGH through the distribution process to ensure
that patients who require HGH receive the genuine product on a timely basis.

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Also, we plan to start an e-commerce strategy (on-line store with ACEPCOL)
(http://www.hormonadecrecimiento.com.co) to be launched in 2006 to commercialize directly to several patients locally
and regionally.

8. PRICE STRATEGY

The pricing structure will be based on the future investments , importation processes and competitor prices. In
Colombia, we found that prices are variable depending on customer needs (patients or institutions), type of institution
(private or public, social security) and tenders.

This table summarizes the international pricing strategy for main HGH competitors.

DRUG NAME
PHARMA
COMPANY
PRODUCT
INTERNATIONAL
PRICE (Aprox)
LOCAL
PRICING
STRATEGY(1)
AVERAGE
COST PER I.U.
IN COLOMBIA
Genotropin
PFIZER
(PHARMACIA)
Recombinant
Somatropin
16 I.U.
USD 232
16 I.U.
USD 107
USD 6.68
Saizen SERONO
Recombinant
Somatropin
4 I.U.
USD 44
24 I.U.
USD 204
USD 8.5
Norditropin
NOVO-
NORDISK
Recombinant
Somatropin
4 I.U.
USD 44
24 I.U.
USD 221
USD 9.22
Zomacton FERRING NOT AVAILABLE IN COLOMBIA
GrowthTropin DONG-A
Recombinant
Somatropin
16 I.U.
USD
16 I.U.
USD 106
USD 6.64
BioTropin CHALVER
Recombinant
Somatropin
N-A
12 I.U.
USD 64
USD 5.31
Humatrope ELI-LILLY
Recombinant
Somatropin
N-A
15 I.U.
USD 64
USD 4.26
(1): USD 1 is equivalent to $2.350 Colombian Pesos (COP).

Our local pricing strategy depends on business negotiations with the International partners and projected gross
margins (60-70%).



New SeroJ et Needle-Free Growth Hormone Delivery Device from SERONO.
Eli-Lillys Humatrope Growth Hormone


Cool.click totally needle-free growth hormone exclusively for Saizen

[somatropin (rDNA
origin) for injection]
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9. COMPETITORS FOR Dysport






















HOW CAN WE GROW IN THE NEAR FUTURE?

Growth in the Human Growth Hormone market in Colombia is being driven by:

1. Expansion in the number of approved indications.

2. Promoting physician awareness of price differences between products may drive the uptake of less
expensive less well-known products

3. Brand differentiation through innovations in delivery technology will be a critical success factor

4. New products in the market such as recombinant human IGF-1 (rhIGF-1 replacement therapy). It has
been estimated in the United States that Primary IGFD can be 1.5 times more common that HGH
deficiency.



DRUG NAME
PHARMA
COMPANY
PRODUCT
INTERNATIONAL
PRICE (Aprox)
LOCAL PRICING
STRATEGY(1)
Botox ALLERGAN Type A Toxin
100 I.U.
not known
100 I.U.
not known
Myobloc
ATENA
NEUROSCIENCES
Type B Toxin
2.500 I.U.
not known
2.500 I.U.
Not known
Figure. The main competitor
in Colombia for the
Dysport(tm) product is
Botox from Allergan.
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4. BUSI NESS ORGANI ZATI ON


OUR MISSION

To improve health, quality of life, longevity and medical support by providing innovative solutions to hospitals, clinics,
medical centers and patients


OUR VISION

To consolidate the new company as one of the two leading supplier for HGH by 2008

OUR SHARED VALUES

HONESTY : to generate trust and confidence.
LOYALTY : Preference by the customer.
QUALITY : In processes, products and services.
CUSTOMER SUPPORT : Financially, scientifically, technically and humanely .
COMPETITIVENESS : To be the second leading supplier in Colombia.




General accounting, payroll, and cost accounting will be contracted with a specialized firm in charge of preparing
balance sheets, profit and loss statements, and other financial reports. Responsibilities also will include analyzing
trends, costs, revenues, financial commitments, and obligations incurred to predict future revenues and expenses.
Reports organization's finances to management, and offers suggestions about resource utilization, tax strategies, and
assumptions underlying budget forecasts.

Business organization is being updated to date in conversations with the Shareholders.
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5. RI SKS ANALYSI S

We operate in a rapidly changing environment that involves a number of risks, some of which are beyond our control.

Some of the risks that would interfere with operations while achieving goals and sales objectives are:

RISKS POSSIBLE RISKS PLANNED STRATEGIES AND RESPONSES
Internal
To loose trained personnel and to start a new hiring
process again.


To start a new human resource satisfaction
program.
To hire a new Sales and Marketing Manager
in charge of stimulation and coordination of
sales force.
To hire additional sales persons to make
appropriate technological and scientific
transfer among sales force.
To establish commercial and financial
policies for credit, payment terms and a
follow up schedule of invoices.
Demand

Products may be found to be ineffective or to have
harmful side effects

Our revenues are dependent on reimbursement from
third-party payers who could reduce their
reimbursement rate


To enhance communications IPSEN for
QA/QC and clinical documents.

To discuss risks with IPSEN about
reimbursement in other Latin American
countries and to establish follow-up activities
monthly.
Supply Price increases in HGH
To be effective in the importation process and
to discuss together with IPSEN marketing
and sales strategy to make a long term deal.
To discuss with IPSEN batch production and
release times to coordinate deliveries and
product availability.
Competition
Growing and new competition may reduce our
likelihood of market success

Competition from non-approved uses and generic
drugs could reduce our sales growth

To discuss with professional societies,
practice management groups, private
foundations and organizations involved in
endocrinology diseases to publish guidelines
or recommendations to the health care and
patient communities.
Regulations
Products may fail to receive necessary regulatory
approvals;

Pharmaceutical usage guidelines may recommend
lower use of our products (prescriptions).

If we become subject to significant legal action, we
may incur substantial costs related to litigation.
To discuss with practice management groups
related to endocrinology diseases to
guarantee prescriptions.
To protect ourselves from the cost of these
claims, maintain appropriate liability
insurance coverage in amounts and with
deductibles that we believe are consistent
with industry practice.









BUSINESS PLAN (COLOMBIA) IPSENs PRODUCTS
Private Document. Nor for Public Distribution.
- 16 -


6. FI NANCI AL ANALYSI S

We intend to address market opportunities and threats by developing a range of business strategies and new
formulations by innovator companies.

This new company businesses rely on a revenue model including sales revenues in 4 major cities in Colombia. Initial
revenues are realized from the HGH business unit. Subsequent revenues are from a combination of botulinum toxin
and other products completing each phase in market development.

Challenges for year 1 will be many. The Company will obtain regulatory approval from INVIMA, slow process that can
take from 3-6 months depending on documentation and procedure agility by our personnel. A partnership agreement
for the marketing, distribution and sale of this product will be negotiated with a supplier of HGH and botulinum toxin
products from growth metabolism and neuromuscular disorders.

Working capital has been and will be raised from angel investors. The company expects to complete raising its venture
capital in year 1 for a total amount of USD 62.000 for its initial activities. Based upon comparable technologies and
previous business models, projected revenue is USD 2 million in four years and to continue expanding markets up to
USD 2 million each year after year 5.

Our sales projections for the fiscal year ending December 31, 2008 are USD 2.4 Million. We look for an EBITDA of USD
781.974 and a net income for USD 508.233, assuming a normal scenario in sales, business investments and other expenses
(Exhibit 1).

The establishment of a well trained sales force, several business development projects as well as the establishment of
new business units will be the major cost drivers in year 1 and 2 representing a significant investment in the future that
need to be addressed more carefully.


The next figure shows the expected revenues from the leading compound HGH.

0
10
20
30
40
50
60
70
80
N
u
m
b
e
r

o
f

D
a
y
s
1st Year 2nd Year 3rd Year 4th Year
Turnover
Days sales in accounts receivable Days materials cost in inventory Days finished goods in inventory
Days materials cost in payables Days payroll expense accrued Days operating expense accrued


Our capital expenditure will reflects our continuing investment in marketing and sales and our continuing
implementation of advanced information technology systems.

BUSINESS PLAN (COLOMBIA) IPSENs PRODUCTS
Private Document. Nor for Public Distribution.
- 17 -
Besides investing in activities within sales and marketing and in production capacity, the new company is discussing the
possibility to establish a foundation to fight growth deficiency in our country (developing countries) making donations to the
new Foundation after year 3 and over a 10-year period. The amounts and capabilities of building this new Foundation are in
development.

$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
1st Year 2nd Year 3rd Year 4th Year
Sales Gross Profit Operating Expense Income Before Taxes


The largest part of the increase in operating profit for year 1 is expected to be realized in the second half of the year,
primarily due to new product launches and the continued introduction of existing products in new geographical markets.
As significantly increased investments in sales and marketing and human resources capacity to be able to support the
continued successful roll-out of products as well as to ensure sufficient capacity to support the launch of new products
in the coming years. The worldwide market for short stature therapies is large and has grown at a healthy pace driven
by approval of growth hormone for new indications.

The new company is seeking top-performing, talented individuals who can contribute to our goal of improving
endocrine health.

You can view all financial details such as Income statement, balance sheet and cash flow projections in Exhibits 1, 2
and 3 in the next pages.
BUSINESS PLAN (COLOMBIA) IPSENs PRODUCTS
Private Document. Nor for Public Distribution.
- 18 -



STRATEGIC GOALS FOR HGH BUSINESS UNIT

1. To complete INVIMA registration for all product lines by December 2005.

2. Total revenues for USD 2.4 Millions in 4 years and USD 572.000 in two years.

3. To get 3 major Institutional accounts for HGH: Social Security Institute, SaludCoop
and Colsanitas taking at least 10% market share from the competition.

4. To hire 2 sales persons in charge of the new pharma product line and to redistribute
geographic zones.


BUSINESS PLAN (COLOMBIA) IPSENs PRODUCTS
Private Document. Nor for Public Distribution.
- 19 -

EXHIBIT 1. INCOME STATEMENT 2005-2008

Forecasted TOTAL
1st Year 2nd Year 3rd Year 4th Year 4 Years
Sales
Sales $187,200 $385,000 $765,000 $1,063,000 $2,400,200
Cost of sales $57,952 $126,600 $222,665 $373,080 $780,297

Gross profit $129,248 $258,400 $542,335 $689,920 $1,619,903
Expenses
Operating expenses $64,518 $132,690 $263,657 $366,363 $827,229
Interest $1,375 $1,375 $1,375 $1,375 $5,500
Depreciation $0 $250 $350 $350 $950
Amortization $1,250 $500 $1,250 $1,250 $4,250
Total expenses $67,143 $134,815 $266,632 $369,338 $837,929
Operating income $62,105 $123,585 $275,703 $320,582 $781,974
Other income and expenses
Gain (loss) on sale of assets $0 $0 $0 $0 $0
Other (net) $0 $0 $0 $0 $0
Subtotal $0 $0 $0 $0 $0
Income before tax $62,105 $123,585 $275,703 $320,582 $781,974
Please enter a tax percentage
Taxes @ 35% $21,737 $43,255 $96,496 $112,204 $273,691

Net income $40,368 $80,330 $179,207 $208,378 $508,283
Retained earnings-beginning $0 $40,368 $120,698 $254,905 $0
Dividends paid $0 $0 $45,000 $68,000 $113,000
Retained earnings-ending $40,368 $120,698 $254,905 $395,283 $395,283
Detailed Supporting Information
Cost of sales
Direct labor $29,952 $61,600 $122,400 $170,080 $384,032
Importation Process $23,000 $51,500 $75,565 $168,000 $318,065
Other costs $5,000 $13,500 $24,700 $35,000 $78,200
Depreciation: Enter the
numbers of years.
10 year Buildings $0 $0 $0 $0 $0
5 year Equipment $0 $250 $350 $350 $950
Interest: Percentages from
Data sheet
22.00% Long-Term $1,375 $1,375 $1,375 $1,375 $5,500
22.00% Short-Term $0 $0 $0 $0 $0

BUSINESS PLAN (COLOMBIA) IPSENs PRODUCTS
Private Document. Nor for Public Distribution.
- 20 -

EXHIBIT 2. BALANCE SHEET 2005-2008

Forecast
1st Year 2nd Year 3rd Year 4th Year
ASSETS
Current Assets
Cash and cash equivalents ($832) ($10,032) $18,558 ($2,579)
Accounts receivable $133,348 $232,055 $419,178 $582,466
Inventory $47,632 $83,244 $122,008 $183,985
Other current assets $0 $0 $0 $0

Total Current
Assets $180,148 $305,267 $559,744 $763,872
Fixed Assets
Buildings $0 $0 $0 $0
Equipment $5,000 $7,000 $7,000 $10,000
Subtotal $5,000 $7,000 $7,000 $10,000
Less-accumulated depreciation $0 $250 $600 $950
Total Fixed Assets $5,000 $6,750 $6,400 $9,050
Intangible Assets
Cost $0 $0 $0 $0
Less-accumulated amortization $0 $0 $0 $0

Total Intangible
Assets $0 $0 $0 $0
Other assets $0 $0 $0 $0
Total Assets $185,148 $312,017 $566,144 $772,922
Forecast
LIABILITIES AND 1st Year 2nd Year 3rd Year 4th Year
STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable $0 $0 $0 $0
Notes payable $25,000 $25,000 $25,000 $25,000
Current portion of long-term debt $0 $0 $0 $0
Income taxes $21,737 $43,255 $96,496 $112,204
Accrued expenses $16,973 $46,494 $126,923 $176,365

Total Current
Liabilities $63,710 $114,749 $248,419 $313,569
Non-Current Liabilities
Long-term debt $0 $0 $0 $0
Deferred income taxes $0 $0 $0 $0
Other long-term liabilities $20,000 $15,000 $0 $0
Total Liabilities $83,710 $129,749 $248,419 $313,569
Stockholders' Equity
Capital stock issued $42,550 $42,550 $42,550 $42,550
Additional paid in capital $21,270 $21,270 $21,270 $21,270
Retained earnings $40,368 $120,698 $254,905 $395,283
$104,188 $184,518 $318,725 $459,103

Total Liabilities
and Equity $187,898 $314,267 $567,144 $772,672

BUSINESS PLAN (COLOMBIA) IPSENs PRODUCTS
Private Document. Nor for Public Distribution.
- 21 -
EXHIBIT 3. CASH FLOW PROJECTIONS 2005-2008



Current Forecasted-Linear Regression Analysis
1st Year 2nd Year 3rd Year 4th Year 5th Year 6th Year 7th Year 8th Year
1 2 3 4 5 6 7 8
Net earnings (loss) $40,368 $80,330 $179,207 $208,378 $277,798 $338,088 $398,379 $458,670
Add-depreciation and amortization $1,250 $750 $1,600 $1,600 $1,775 $1,965 $2,155 $2,345


Net cash from
operations $41,618 $81,080 $180,807 $209,978 $279,573 $340,053 $400,534 $461,015

Accounts Receivable ($133,348) ($98,707) ($187,123) ($163,288) ($190,176) ($207,999) ($225,823) ($243,646)
Inventory ($47,632) ($35,612) ($38,764) ($61,977) ($57,543) ($62,162) ($66,780) ($71,399)
Other current assets $0 $0 $0 $0 $0 $0 $0 $0
Accounts payable $0 $0 $0 $0 $0 $0 $0 $0
Current portion of long-term debt $0 $0 $0 $0 $0 $0 $0 $0
Income taxes $21,737 $21,518 $53,241 $15,708 $31,460 $32,824 $34,187 $35,551
Accrued expenses $16,973 $29,521 $80,429 $49,442 $81,170 $96,002 $110,833 $125,665
Other current liabilities $0 $0 $0 $0 $0 $0 $0 $0
Dividends paid $0 $0 ($45,000) ($68,000) ($90,500) ($115,400) ($140,300) ($165,200)


Net cash from
operations ($142,270) ($83,280) ($137,217) ($228,115) ($225,589) ($256,736) ($287,883) ($319,030)

Buildings and improvements $0 $0 $0 $0 $0 $0 $0 $0
Equipment $5,000 $2,000 $0 $3,000 $500 ($300) ($1,100) ($1,900)
Intangible assets $0 $0 $0 $0 $0 $0 $0 $0


Net cash from
investments $5,000 $2,000 $0 $3,000 $500 ($300) ($1,100) ($1,900)

Short term notes payable $25,000 $0 $0 $0 ($12,500) ($20,000) ($27,500) ($35,000)
Long term debt $0 $0 $0 $0 $0 $0 $0 $0
Deferred income $0 $0 $0 $0 $0 $0 $0 $0
Deferred income taxes $0 $0 $0 $0 $0 $0 $0 $0
Other long-term liabilities $16,000 ($5,000) ($15,000) $0 ($15,500) ($21,300) ($27,100) ($32,900)
Capital stock and paid in capital $63,820 $0 $0 $0 ($31,910) ($51,056) ($70,202) ($89,348)


Net cash from
financing $104,820 ($5,000) ($15,000) $0 ($59,910) ($92,356) ($124,802) ($157,248)

Net increase
(decrease) in
cash ($832) ($9,200) $28,590 ($21,137) ($6,426) ($8,739) ($11,051) ($13,364)

Cash at
beginning of
period $0 ($832) ($10,032) $18,558 $13,542 $18,189 $22,837 $27,484

Cash at the end
of period ($832) ($10,032) $18,558 ($2,579) $7,116 $9,451 $11,786 $14,121