Questions

Where do you see Europe in DRL in next 5 years? Growth from US, China, Russia, India, API,
Hospitals and Global Hospitals incl bioloogics (Europe growth is flat at ¬200 crs per Q and YoY
growth of 1%)

Spend of R&D is reducing

Returns to the shareholders by divesting non strategic assets and brands

I have seen Cipla fail in Europe and I have seen the resurrection

Acquired BMS labs and Meridian healthcare UK

The problem, of course, has nothing to do with Dr Reddy’s. Within months of the acquisition, the
German government changed its procurement policy, shifting to a tender-based system for a
substantial number of drugs. This reduced drug reference prices. So, what was aimed at securing
access to the second-largest generics market after the US turned into a liability. “If Dr Reddy’s could
have predicted this change, it wouldn’t have pursued the acquisition. In hindsight, it was a blunder,”
says an analyst, on condition of anonymity.

Betphamr in Feb 2006 for $560 m