Piramal Healthcare Limited

Investor Presentation Date : Dec 2010

Agenda
• Overview • Pharma Solutions • Global Critical Care • OTC business

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Piramal Healthcare – an overview
Piramal Healthcare

Domestic Formulation
• Sells branded generic Medicines in domestic market • Sales – Rs. 18.1 billion • Consideration – Rs. 178.1 billion

Diagnostics

Custom Manufacturing
• Partners with MNC pharma cos to service their mfg & development needs • Sales – Rs. 9.8 bn

Critical Care
• Sells anesthetic products to hospitals globally

OTC

• Network of 100+ labs across India

• Sells OTC Products in India

• Sales – Rs. 2.0 bn • Consideration – Rs. 6 billion

• Sales – Rs. 3.3 bn

• Sales – Rs. 1.25 bn

Businesses Divested 60% of FY10 sales

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Pharma Solutions

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Market Characteristics
• • •

Global Outsourcing market estimated to be US$ 51 billion, growing at 14% Market share of India extremely low Lower costs and high quality manufacturing skill presents compelling

rationale to shift manufacturing to India
Global Pharma Manufacturing and Research market (2008)

Pharmaceutical outsourcing market in India (2007–2010(E))

4
USD billion

3.5 2.9 1.7 1.1

3 2 1 0 2007 2008

Global Pharma Custom Research Manufacturing and & R&D Spend Manufacturing USD 264b (USD 51b)

2009P

2010P
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OPPI – E&Y report on Outsourcing: 2009

A full-service CMO across the drug lifecycle
Medicinal Chemistry Early Phase Custom Synthesis and Formulations Development CLINICAL DEVELOPMENT Discovery Research Pre-clinical Pre-clinical Dev. Dev. API Forms Phase I API Phase IIa Phase IIb Phase III API Formulations development API • Torcan (niche APIs only) • Morpeth, • Digwal, Ennore Formulations • Morpeth • Pithampur Launch Full scale supplies

Clinical Trials Formulations API • Canada – Torcan • UK – Morpeth, • India – Ennore
Services across 3 continents

API • Canada - Torcan • UK – Morpeth, • India – Ennore, Formulations • UK – Morpeth • India – Ahmedabad

Formulations • UK – Morpeth • India - Ahmedabad

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Capabilities – India
Digwal USFDA approved, API facility cGMP manufacturing facility Pithampur Ennore Ahmedabad Contract Formulations and analytical Development, clinical manufacturing

Facility

Capability

USFDA approved formulations facility

Large scale intermediates and early phase API development

USP

Supplying APIs to > 20 countries since 2003

Can produce tablets, gels, creams, liquids and sprays

Has 2 cGMP pilot plants; Indian Hub for Early phase APIs

Caters to both small and large pharmaceutical companies

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Capabilities – Overseas
Facility Morpeth USFDA approved, finished dosage with containment suite, process development for API and Formulations Grangemouth Toronto

Capability

Manufacturing of Cytotoxic APIs and conjugates, High Potency Substances

API development services and pre-clinical manufacturing

USP

Long-term manufacturing contract with Pfizer clinical trial packaging for European Pharma

Capability that is rare globally, serves large biotech cos

Services smaller R&D firms and biotech in North America who are averse to moving work outside of North America
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Increasing contribution from sales from Indian assets
100.0%
10,080 10,606 8,850
Total in Rs. million

80.0% 63.0% 60.0% 77.6% 57.5%

40.0% 42.5%

20.0%
22.4%

37.0%

0.0% FY08
Outside India CMG sales

FY 09
India CMG sales

FY 10

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Global Critical Care

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Critical Care - Overview
Inhalation Anaesthetics Halothane, Isoflurane, Enflurane, Sevoflurane & Desflurane Other Anaesthetics Propofol – intraveneous, Bupivacaine – Local, Atracurium Besylate Others

Products

Haemmacel – Blood Plasma Volume Expander

Market Size

US $ 1,000 mn

US $ 825 mn

US $ 300 mn

Mfg. Location

Digwal, India Bethleham, USA

Sourced from BSV’s facility in Ambernath, Mumbai

Baddi India
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Evolution of PCC business
3,500.0

3,000.0

2,500.0

Halothane stabilized in India

Isoflurane stabilized in India

Minrad & RxElite Acquisition: March 2009

3,276.7

2,000.0

1,500.0

Rhodia-IA acquisition: January 2005
711.5 830.0 824.9

1,316.0

1,000.0

500.0 91.0 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010

Piramal Healthcare has successfully integrated Rhodia IA business to build a global presence: - Acquired Rhodia’s IA business in Jan 2005, the business had profitability of 22% - Production migrated to India - halothane and isoflurane technologies absorbed - Gained leadership position in Halothane and Isoflurane - Acquired Minrad Inc.’s inhalation anesthetic portfolio in March 2009 - Acquired Bharat Serum & Vaccine’s injectible anesthetic portfolio in April 2010
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Piramal IA Facility at Digwal, India

FY10:Key Developments
Increased Production Sales & Marketing Margin Enhancement • Production has tripled at Bethleham facility • Haemaccel supplies started from Baddi • Significant inroads made in private market segments in LATAM, SE Asia & Africa for Sevoflurane • Sevoflurane market share grew from 4.7% to 17.8% in volume terms in US market •Sevoflurane price realization improved by 7% as compared to pre-acquisition Minrad pricing (ROW) • Reduced manufacturing costs significantly • Completed dossier fillings for 28 EU countries for Sevoflurane • Received the first Sevoflurane registration in MENA region •Veterinary Sevoflurane market share grew from 0.5% to 9.9% •Gained private label Isoflurane supply contract for 13 largest U.S. animal health distributor

Regulatory

Increased Veterinary Presence

Acquisition of BSV’s Anesthetic Business
• Acquired Bharat Serum & Vaccines’s Anesthetic product business consisting of Propofol, Bupivacaine and Atracurium Besylate in April 2010 • Acquisition to provide PHL an access to world’s largest selling Injectable Anaesthetic – Propofol global market size – US $ 825 million with ex-US/Europe/Japan market being US $ 250 million • Business had sales of Rs. 106 million in FY10, currently being sold in 30 countries including India, Russia, Columbia and Ukraine • PHL to leverage it’s strong distribution framework across 108 countries to build on Propofol sales • Acquisition to complement existing anesthetic portfolio of largely inhalation anesthetic products
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OTC Business

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Strengthening presence in OTC space
• OTC sales crossed Rs. 1 billion in FY10 • Broad OTC portfolio consisting of leading brands like Saridon, Lacto Calamine, Superactiv and Polycrol • Lacto Calamine won coveted 2010 REBRAND 100 Winner, sales crossed Rs.500 mn • Strong sales distribution network established covering 220,000 stores • Launched Superactiv and Itchmosol in 2010, these are now ranked 2nd in their category

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Acquired i-pill, India’s largest ECP brand

• Acquired i-pill, from Cipla in March 2010 for Rs. 950 million • “i-pill” features in the top-300 pharmaceutical products and had sales of Rs. 316 million (ORG IMS MAT March 2010) Strategic Rationale • ECPs - Newly created category in 2007, already ~ 100 cr. in 2 years and is the fastest growing OTC category • High involvement category leading to high brand loyalty and low price sensitivity

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Thank you

For further details contact: Sagar Gokani sagar.gokani@piramal.com Prasad Mhatre prasad.mhatre@piramal.com

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